1 00:00:06,519 --> 00:00:10,080 Speaker 1: Tonight, the AI boom is here, but is it too 2 00:00:10,119 --> 00:00:13,680 Speaker 1: late to invest or? Is this just the beginning? You're 3 00:00:13,720 --> 00:00:16,119 Speaker 1: listening to Simply Money, presented by all Worth Financial on 4 00:00:16,239 --> 00:00:19,840 Speaker 1: Bob Sponseller along with Brian James. Let's face it, you 5 00:00:19,880 --> 00:00:23,680 Speaker 1: can't open a financial newsletter or turn on CNBC these 6 00:00:23,800 --> 00:00:28,440 Speaker 1: days without hearing about artificial intelligence. AI is the thing, 7 00:00:28,560 --> 00:00:31,520 Speaker 1: it's the story. But the question we're hearing from listeners 8 00:00:31,600 --> 00:00:32,560 Speaker 1: is simple. 9 00:00:32,880 --> 00:00:34,159 Speaker 2: What do I do about it? 10 00:00:34,200 --> 00:00:37,800 Speaker 1: Do I buy AI stocks now? Do I ignore the 11 00:00:37,840 --> 00:00:42,000 Speaker 1: whole sector? Are they overpriced? Or do I continue to 12 00:00:42,120 --> 00:00:46,199 Speaker 1: chase the hype? Brian, I know you love data. We 13 00:00:46,320 --> 00:00:48,960 Speaker 1: joke around a lot about data, but let's talk about 14 00:00:49,320 --> 00:00:51,960 Speaker 1: let's talk about this AI space because I think there's 15 00:00:52,000 --> 00:00:55,800 Speaker 1: a lot of historical context to draw into this discussion. 16 00:00:56,120 --> 00:00:58,480 Speaker 2: Yeah. So, if you look back through market history, Bob, 17 00:00:58,680 --> 00:01:01,400 Speaker 2: whenever the market goes on, there's almost always some kind 18 00:01:01,440 --> 00:01:04,240 Speaker 2: of catalysts behind it, some interesting story somewhere in the 19 00:01:04,280 --> 00:01:07,080 Speaker 2: economic world that is driving things. You know, twenty five 20 00:01:07,160 --> 00:01:09,480 Speaker 2: years ago, it was the Internet itself. It was just 21 00:01:09,520 --> 00:01:13,160 Speaker 2: the original concept of let's use computers to communicate and 22 00:01:13,240 --> 00:01:15,840 Speaker 2: buy stuff and conduct commerce and all that kind of thing, 23 00:01:15,880 --> 00:01:17,760 Speaker 2: and then for a while it was real estate. Way 24 00:01:17,840 --> 00:01:20,560 Speaker 2: before that, in the seventies, it was oil and gas partnerships, whatever. 25 00:01:21,120 --> 00:01:24,160 Speaker 2: There's always something that's attracting attention in capital and so forth. 26 00:01:24,200 --> 00:01:26,679 Speaker 2: So right now it's AI, and we're still in the 27 00:01:26,760 --> 00:01:28,920 Speaker 2: very beginning stages of this, so there's still a lot 28 00:01:28,920 --> 00:01:32,520 Speaker 2: of promise and a ton of guessing going on. Same way, 29 00:01:32,560 --> 00:01:35,280 Speaker 2: you know, I think the easiest thing to draw parallel 30 00:01:35,319 --> 00:01:38,360 Speaker 2: to is the original dot com boom because we didn't 31 00:01:38,440 --> 00:01:40,520 Speaker 2: know which companies were going to make it. There were 32 00:01:40,560 --> 00:01:43,040 Speaker 2: just a lot of companies out there with interesting marketing 33 00:01:43,080 --> 00:01:46,520 Speaker 2: plans and interesting products and services and so forth in 34 00:01:46,880 --> 00:01:49,160 Speaker 2: taking advantage of new technology, and that's where we are 35 00:01:49,240 --> 00:01:52,120 Speaker 2: right now. So if you're trying to invest in AI directly, 36 00:01:52,240 --> 00:01:54,240 Speaker 2: like you're trying to pick the next Nvidia or the 37 00:01:54,280 --> 00:01:57,800 Speaker 2: next open AI that's the company behind JAGPT, you're basically 38 00:01:57,840 --> 00:02:00,680 Speaker 2: placing bets on individual horses, not really no of course, 39 00:02:01,120 --> 00:02:02,680 Speaker 2: what's going to happen at the end of that race. 40 00:02:02,920 --> 00:02:06,240 Speaker 2: So that brings us to the there's three choices everybody has, 41 00:02:06,360 --> 00:02:08,440 Speaker 2: right so option one is what we just kind of 42 00:02:08,520 --> 00:02:10,720 Speaker 2: hinted at. Pick that winning horse. You're gonna bet on 43 00:02:10,720 --> 00:02:13,000 Speaker 2: the Tesla's the videos of the world, and maybe that 44 00:02:13,120 --> 00:02:15,480 Speaker 2: up and coming chip company that nobody's heard of yet. 45 00:02:15,680 --> 00:02:17,720 Speaker 2: And meanwhile your neighbor is investing in some other thing 46 00:02:17,720 --> 00:02:19,800 Speaker 2: that you never ran across, that nobody else else has 47 00:02:19,840 --> 00:02:23,520 Speaker 2: heard it yet. That's the most tempting option, Bob. You know, 48 00:02:23,600 --> 00:02:25,880 Speaker 2: had you done this early on with an Nvidia or 49 00:02:25,880 --> 00:02:27,880 Speaker 2: Apple or Amazon, this is what makes it so tempting. 50 00:02:27,880 --> 00:02:30,760 Speaker 2: What to work? Fine, But for every Amazon, there are 51 00:02:30,880 --> 00:02:34,320 Speaker 2: web vans and pets, dot Com and MySpace, and most 52 00:02:34,320 --> 00:02:36,120 Speaker 2: of these companies just plane don't survive. 53 00:02:37,440 --> 00:02:39,400 Speaker 1: Yeah, I think the way to look at this is, 54 00:02:39,639 --> 00:02:43,480 Speaker 1: you know, let's face it, if artificial intelligence really is. 55 00:02:43,440 --> 00:02:45,600 Speaker 2: A thing, and I think it is, I don't. I 56 00:02:45,600 --> 00:02:47,520 Speaker 2: think the debate is over at that point. 57 00:02:47,720 --> 00:02:51,280 Speaker 1: At this point, it's going to change things, and probably 58 00:02:51,280 --> 00:02:55,000 Speaker 1: in a good way if you like efficiency. So, just 59 00:02:55,160 --> 00:02:57,640 Speaker 1: like the Internet, you know you could have early on, 60 00:02:57,760 --> 00:03:03,079 Speaker 1: you can invest in the technology hardware or the early 61 00:03:03,240 --> 00:03:07,560 Speaker 1: software developers, things like that. But you know, let's face it, 62 00:03:07,639 --> 00:03:11,640 Speaker 1: the Internet, there's not a company in existence today, There's 63 00:03:11,680 --> 00:03:15,359 Speaker 1: not a home in existence today that doesn't use the Internet. 64 00:03:15,440 --> 00:03:19,720 Speaker 1: My point here is that if artificial intelligence is going 65 00:03:19,800 --> 00:03:21,919 Speaker 1: to be a thing, and it's already becoming a thing. 66 00:03:22,760 --> 00:03:27,040 Speaker 1: It's going to impact efficiency in every corner of the market, 67 00:03:27,480 --> 00:03:31,200 Speaker 1: And so you don't have to pick the next hardware supplier. 68 00:03:31,400 --> 00:03:31,919 Speaker 2: You can just. 69 00:03:32,040 --> 00:03:36,640 Speaker 1: Watch companies continue to grow their productivity in their earnings 70 00:03:37,120 --> 00:03:41,440 Speaker 1: by adopting a piece of technology like AI or like 71 00:03:41,640 --> 00:03:45,520 Speaker 1: the Internet that causes productivity to go up, in profits 72 00:03:45,560 --> 00:03:48,960 Speaker 1: to rise. In other words, you can be broadly participating 73 00:03:49,000 --> 00:03:52,560 Speaker 1: in the economy and not even have you know the 74 00:03:52,920 --> 00:03:56,720 Speaker 1: letters AI behind the name of a company. But make 75 00:03:56,760 --> 00:04:01,320 Speaker 1: no mistake, they're benefiting from the adoption of this technology 76 00:04:01,720 --> 00:04:03,640 Speaker 1: if they're being smart about things correct. 77 00:04:03,720 --> 00:04:07,600 Speaker 2: And we're picking winners and losers here, right, So at 78 00:04:07,600 --> 00:04:09,320 Speaker 2: the end of the day, some companies are going to 79 00:04:09,360 --> 00:04:11,520 Speaker 2: be around forever. Right. We can name some of those 80 00:04:11,560 --> 00:04:14,480 Speaker 2: companies from the original Internet boom that obviously now are 81 00:04:14,520 --> 00:04:16,520 Speaker 2: the core of the Internet. They made it. But then 82 00:04:16,520 --> 00:04:18,280 Speaker 2: you've got the others who didn't quite make it. And 83 00:04:18,320 --> 00:04:20,160 Speaker 2: the example I would give is, I can go I 84 00:04:20,160 --> 00:04:22,279 Speaker 2: can go on Amazon dot com right now, and I 85 00:04:22,279 --> 00:04:24,720 Speaker 2: could rent a video or I could buy a book 86 00:04:25,080 --> 00:04:28,240 Speaker 2: about the demise of pets dot com. So one of 87 00:04:28,279 --> 00:04:30,120 Speaker 2: them is gonna win, and one of them is gonna lose. 88 00:04:30,279 --> 00:04:32,080 Speaker 2: How do we find a winner. Is it the company 89 00:04:32,080 --> 00:04:33,880 Speaker 2: with the best technology, or is it the company with 90 00:04:33,920 --> 00:04:36,960 Speaker 2: the best marketing partnerships or scaling ability? You know, the 91 00:04:37,000 --> 00:04:39,080 Speaker 2: ones who turn it into the most successful type of 92 00:04:39,080 --> 00:04:41,760 Speaker 2: a business, that kind of thing. So, but picking winners 93 00:04:41,760 --> 00:04:43,760 Speaker 2: isn't just about who's smart, it's about who can make 94 00:04:43,839 --> 00:04:47,039 Speaker 2: money at it. There's the road to financial success is 95 00:04:47,120 --> 00:04:50,000 Speaker 2: littered with smart people who simply couldn't take a great 96 00:04:50,040 --> 00:04:52,720 Speaker 2: concept and turn it into a real business. The market 97 00:04:52,800 --> 00:04:55,200 Speaker 2: already knows that in Vidia is good. That's not news. 98 00:04:55,480 --> 00:04:58,120 Speaker 2: So you're not just betting on their success. You're betting 99 00:04:58,160 --> 00:05:00,919 Speaker 2: that they're going to do better than the already sky 100 00:05:01,040 --> 00:05:03,840 Speaker 2: high expectations that the market has placed on them because 101 00:05:03,880 --> 00:05:05,840 Speaker 2: so many people have piled into these stocks. That is 102 00:05:05,880 --> 00:05:08,520 Speaker 2: a much taller order than looking at some you know, 103 00:05:08,600 --> 00:05:10,839 Speaker 2: business plan from somebody that's working out of a garage 104 00:05:10,880 --> 00:05:12,120 Speaker 2: and hasn't built anything yet. 105 00:05:12,800 --> 00:05:14,600 Speaker 1: Yeah, and at the end of the day, I don't 106 00:05:14,640 --> 00:05:17,359 Speaker 1: care what industry you're talking about. It comes down to 107 00:05:17,560 --> 00:05:21,360 Speaker 1: how much are you willing to pay for a dollars 108 00:05:21,520 --> 00:05:25,080 Speaker 1: worth of earnings or profits. Let's give an example, Let's 109 00:05:25,120 --> 00:05:30,560 Speaker 1: compare Tesla right now to Toyota. Tesla stock is priced 110 00:05:30,560 --> 00:05:33,200 Speaker 1: around four hundred dollars a share, earnings are around a 111 00:05:33,320 --> 00:05:37,040 Speaker 1: dollar fifty per share. Toyota, on the other hand, their's stocks, 112 00:05:37,200 --> 00:05:39,719 Speaker 1: you know, priced around two hundred dollars a share, but 113 00:05:39,839 --> 00:05:43,440 Speaker 1: their earnings per share is twenty dollars. That means Tesla's 114 00:05:43,760 --> 00:05:48,320 Speaker 1: priced earnings ratio is about one hundred while Toyota's is 115 00:05:48,520 --> 00:05:51,200 Speaker 1: twelve point. Here is you got to look at value. 116 00:05:51,200 --> 00:05:55,120 Speaker 1: And I know the market will pay up for dramatically 117 00:05:55,200 --> 00:05:58,920 Speaker 1: growing earnings, but sometimes Brian, and we see this all 118 00:05:59,000 --> 00:06:02,320 Speaker 1: the time. If people chase or get too speculative about 119 00:06:02,400 --> 00:06:06,160 Speaker 1: assuming that sky high earnings growth is going to continue, 120 00:06:06,520 --> 00:06:09,400 Speaker 1: that's where these stocks can really crater and come down 121 00:06:09,400 --> 00:06:12,040 Speaker 1: to earth. And so as an investor out there, you 122 00:06:12,160 --> 00:06:15,840 Speaker 1: got to be looking at how what amount of risk 123 00:06:15,920 --> 00:06:18,640 Speaker 1: are you really willing to take and is it better 124 00:06:18,839 --> 00:06:21,000 Speaker 1: to go buy something like a. 125 00:06:21,080 --> 00:06:23,360 Speaker 2: Toyota at twelve times earnings that is. 126 00:06:23,320 --> 00:06:26,200 Speaker 1: Still growing and that that's all that That's what goes 127 00:06:26,240 --> 00:06:32,120 Speaker 1: into constructing a risk adjusted, well constructed diversified investment portfolio. 128 00:06:32,200 --> 00:06:34,200 Speaker 2: Yeah, I'm gonna put some more numbers to that too, 129 00:06:34,240 --> 00:06:35,960 Speaker 2: because just just kind of help people get to get 130 00:06:35,960 --> 00:06:38,080 Speaker 2: an idea of the scale of the demand that there 131 00:06:38,120 --> 00:06:40,799 Speaker 2: is for these stocks. So if you're buying Tesla right now, 132 00:06:40,839 --> 00:06:44,080 Speaker 2: you're paying four hundred dollars for a buck fifty in earnings. 133 00:06:44,160 --> 00:06:46,599 Speaker 2: That's where a price to earnings ratio comes from. But 134 00:06:46,640 --> 00:06:48,440 Speaker 2: if you're gonna go to it with Toyota, obviously a 135 00:06:48,440 --> 00:06:52,920 Speaker 2: little more traditional, a little more standard type of a 136 00:06:52,960 --> 00:06:56,000 Speaker 2: car company, now you're paying two hundred dollars for twenty 137 00:06:56,040 --> 00:06:58,159 Speaker 2: dollars in earnings. So it's gonna take. So the mass 138 00:06:58,160 --> 00:06:59,840 Speaker 2: says it's going to take about one hundred years to 139 00:07:00,040 --> 00:07:02,560 Speaker 2: earn back your Tesla investment if earnings stay the same 140 00:07:02,800 --> 00:07:05,640 Speaker 2: versus twelve years with Toyota. If Tesla stays on the 141 00:07:05,640 --> 00:07:09,360 Speaker 2: same trajectory of growth that they've had, then then yes 142 00:07:09,360 --> 00:07:12,280 Speaker 2: that I mean that it could potentially continue on that 143 00:07:12,640 --> 00:07:14,440 Speaker 2: type of a pace. But on the other hand, if 144 00:07:14,480 --> 00:07:16,840 Speaker 2: other car companies catch up to that technology, if somebody 145 00:07:16,840 --> 00:07:19,120 Speaker 2: else comes up with a better idea, Tesla's got a 146 00:07:19,160 --> 00:07:21,720 Speaker 2: lot further to fall than the new companies, the new 147 00:07:21,840 --> 00:07:25,160 Speaker 2: entrance to that to that arena that don't quite exist yet. 148 00:07:25,200 --> 00:07:27,520 Speaker 2: And I don't mean to pick on Tesla. Maybe maybe 149 00:07:27,520 --> 00:07:29,520 Speaker 2: that's right. I mean, maybe that is the valuation that 150 00:07:29,560 --> 00:07:31,400 Speaker 2: should have. But as an investor, you got to ask 151 00:07:31,640 --> 00:07:34,040 Speaker 2: what is already priced in. Everybody knows that this is 152 00:07:34,080 --> 00:07:37,120 Speaker 2: this is unique technology and a very unique charging network 153 00:07:37,120 --> 00:07:38,680 Speaker 2: and all this other stuff. They do have a hell 154 00:07:38,720 --> 00:07:40,920 Speaker 2: of a head start on other companies. But at the 155 00:07:40,960 --> 00:07:42,800 Speaker 2: end of the day, it's a growth stock and it 156 00:07:42,800 --> 00:07:46,840 Speaker 2: can have wild swings simply because expection expectations are so 157 00:07:46,960 --> 00:07:49,560 Speaker 2: crazy high. And that's what comes along with being you know, 158 00:07:49,600 --> 00:07:52,120 Speaker 2: Tesla is not quite a meme stock. It's definitely got 159 00:07:52,160 --> 00:07:55,160 Speaker 2: its own you know, it's a more unique situation. But 160 00:07:55,240 --> 00:07:58,160 Speaker 2: at the same time it's it's also something that has 161 00:07:58,160 --> 00:08:01,040 Speaker 2: had an awful lot of speculative activity around it because 162 00:08:01,040 --> 00:08:03,560 Speaker 2: of what it might do, not what it has done. 163 00:08:04,160 --> 00:08:05,240 Speaker 2: All right, well, we already talked. 164 00:08:05,240 --> 00:08:07,400 Speaker 1: We talked about option one here, which is trying to 165 00:08:07,440 --> 00:08:10,600 Speaker 1: pick the next big winner. Let's talk about option two. 166 00:08:11,040 --> 00:08:13,800 Speaker 1: You set out the market entirely. You say, hey, all 167 00:08:13,880 --> 00:08:16,360 Speaker 1: this stuff is too crazy, too speculative. 168 00:08:16,560 --> 00:08:18,280 Speaker 2: I don't understand any of it. 169 00:08:18,680 --> 00:08:21,760 Speaker 1: I'm just going to ignore that AI exists, and I'm 170 00:08:21,800 --> 00:08:25,440 Speaker 1: going to stay out of it completely. This might feel safe, 171 00:08:25,600 --> 00:08:28,480 Speaker 1: especially after the tech bubble in the early two thousands 172 00:08:28,480 --> 00:08:30,920 Speaker 1: that let's face it, a lot of investors went through 173 00:08:32,160 --> 00:08:36,160 Speaker 1: or cryptocurrency crashes in the short term. But here's the problem. 174 00:08:36,559 --> 00:08:40,120 Speaker 1: Your risk missing out on structural growth. And I would 175 00:08:40,160 --> 00:08:45,800 Speaker 1: say a generational growth and innovation opportunity, which is AI. 176 00:08:46,559 --> 00:08:50,360 Speaker 1: AI could become like the Internet or electricity, meaning it's 177 00:08:50,520 --> 00:08:55,119 Speaker 1: ubiquitous everywhere, something so embedded that it's that not investing 178 00:08:55,200 --> 00:08:59,560 Speaker 1: in it means just falling behind in terms of return 179 00:08:59,720 --> 00:09:03,120 Speaker 1: and growth of your portfolio and your whole retirement plan. 180 00:09:03,640 --> 00:09:06,760 Speaker 2: Yeah, and I think that electricity example is pretty is 181 00:09:07,120 --> 00:09:10,560 Speaker 2: really a propos here, because if you think back to that, 182 00:09:10,640 --> 00:09:12,840 Speaker 2: I'm sure there were people who sat on the sidelines, 183 00:09:12,880 --> 00:09:15,160 Speaker 2: going that electricity stuff, that's dangerous. I don't want that 184 00:09:15,200 --> 00:09:17,480 Speaker 2: pulled into my building. I want nothing to do with that. 185 00:09:18,320 --> 00:09:21,200 Speaker 2: And those folks kind of obviously missed out on opportunities 186 00:09:21,200 --> 00:09:23,880 Speaker 2: to make their businesses more efficient. And I don't bet 187 00:09:23,920 --> 00:09:26,439 Speaker 2: there's plenty of stories out there about businesses that went 188 00:09:26,440 --> 00:09:29,800 Speaker 2: out that basically failed because they didn't move quickly enough 189 00:09:29,840 --> 00:09:33,520 Speaker 2: to take advantages of what electricity could bring. And those 190 00:09:33,559 --> 00:09:37,320 Speaker 2: factories that were making things by hand lost quickly, and 191 00:09:37,320 --> 00:09:38,720 Speaker 2: I would I have to think that's got to be 192 00:09:38,720 --> 00:09:40,800 Speaker 2: almost an overnight thing if you weren't on the cutting 193 00:09:40,880 --> 00:09:42,520 Speaker 2: edge of that one hundred and fifty years ago whenever 194 00:09:42,559 --> 00:09:45,120 Speaker 2: that was. But at the same time, that's what you're 195 00:09:45,160 --> 00:09:47,640 Speaker 2: you're potentially missing out on. So we can't ignore these things. 196 00:09:47,679 --> 00:09:50,760 Speaker 2: They are the types of things that drive the markets forward, 197 00:09:50,960 --> 00:09:53,400 Speaker 2: and that extends to further than just that sector, just 198 00:09:53,480 --> 00:09:55,880 Speaker 2: that little stock. So history shows that we need to 199 00:09:55,920 --> 00:09:58,160 Speaker 2: be paying attention, we need to be willing to invest 200 00:09:58,200 --> 00:10:00,880 Speaker 2: like that. So with that, maybe we move on to 201 00:10:00,960 --> 00:10:06,640 Speaker 2: option three here, Bob Well, option three is the smart choice. Here, 202 00:10:06,800 --> 00:10:11,080 Speaker 2: you invest in the whole market again, broadly diversified funds 203 00:10:11,120 --> 00:10:14,600 Speaker 2: that give you exposure to all the contenders, all the 204 00:10:14,640 --> 00:10:18,560 Speaker 2: industries out there, because again, if artificial intelligence is going 205 00:10:18,600 --> 00:10:20,480 Speaker 2: to be a thing, and I think it's going to 206 00:10:20,520 --> 00:10:23,560 Speaker 2: be a thing, every sector of the economy is going 207 00:10:23,600 --> 00:10:26,800 Speaker 2: to benefit from that. It's going to be a productivity booster. 208 00:10:27,559 --> 00:10:30,560 Speaker 2: And so you don't have to worry about picking the 209 00:10:30,600 --> 00:10:33,880 Speaker 2: next winner and loser. You just stay invested in the 210 00:10:33,920 --> 00:10:39,640 Speaker 2: broad market. You count on ingenuity, innovation, hard work. 211 00:10:39,840 --> 00:10:44,400 Speaker 1: People out there always finding a way to leverage technology 212 00:10:44,480 --> 00:10:48,040 Speaker 1: to grow businesses and grow profits. And that's why staying 213 00:10:48,080 --> 00:10:52,600 Speaker 1: diversified is usually for most people the best way to go. 214 00:10:53,000 --> 00:10:54,680 Speaker 2: Yeah, that's the way to think about it. At the 215 00:10:54,760 --> 00:10:57,720 Speaker 2: end of the day, I think the biggest thing here 216 00:10:57,800 --> 00:11:00,160 Speaker 2: is that there is a new technology out there a 217 00:11:00,200 --> 00:11:01,680 Speaker 2: lot of companies are going to be looking to take 218 00:11:01,720 --> 00:11:04,240 Speaker 2: advantage of. And I always think back to the stories 219 00:11:04,320 --> 00:11:05,880 Speaker 2: that we heard from the gold Rush in the middle 220 00:11:05,880 --> 00:11:08,560 Speaker 2: of the nineteenth century. Was it the gold diggers that 221 00:11:08,640 --> 00:11:10,760 Speaker 2: made all the money, No, it wasn't. It was the 222 00:11:10,840 --> 00:11:13,559 Speaker 2: Levi Strauss's of the world who decided to make clothing 223 00:11:13,600 --> 00:11:15,760 Speaker 2: that was appropriate to go dig in the dirt all day. 224 00:11:16,080 --> 00:11:19,319 Speaker 2: It was wells far ago. Remember the stage coach logo, Well, 225 00:11:19,320 --> 00:11:21,840 Speaker 2: that's what it's from because there were businesses out there 226 00:11:21,840 --> 00:11:23,800 Speaker 2: making money out in the middle of nowhere and they 227 00:11:23,840 --> 00:11:27,880 Speaker 2: needed a way to get those dollars back in safely. 228 00:11:27,920 --> 00:11:29,920 Speaker 2: And that's where that stage coach came from, and a 229 00:11:30,000 --> 00:11:31,920 Speaker 2: number of other companies. That's what's going to happen here. 230 00:11:32,000 --> 00:11:33,720 Speaker 2: It's going to be the companies who have some other 231 00:11:33,840 --> 00:11:36,360 Speaker 2: kind of products and service who were using AI to 232 00:11:36,480 --> 00:11:39,720 Speaker 2: continue selling that long running product or service in a 233 00:11:39,800 --> 00:11:42,720 Speaker 2: much more efficient and much more profitable manner. That's what 234 00:11:42,840 --> 00:11:45,160 Speaker 2: history shows when we have new technology, that's where the 235 00:11:45,200 --> 00:11:49,640 Speaker 2: advantage is not for the lucky holders of that one 236 00:11:49,679 --> 00:11:52,680 Speaker 2: company that survived alongside the nineteen that didn't. 237 00:11:53,440 --> 00:11:55,800 Speaker 1: Well, Brian, to take your gold rush example, which is 238 00:11:55,800 --> 00:11:58,319 Speaker 1: a great one, and catapult that all the way forward 239 00:11:58,360 --> 00:12:01,400 Speaker 1: to twenty twenty five. I mean, let's face it, we're 240 00:12:01,440 --> 00:12:04,880 Speaker 1: going to need a ton of energy to fuel these 241 00:12:05,120 --> 00:12:08,840 Speaker 1: servers that you know power AI. So and this is 242 00:12:08,880 --> 00:12:11,360 Speaker 1: not a stock recommendation. I'm just saying, look at a 243 00:12:11,440 --> 00:12:15,400 Speaker 1: company like ge Vernova. Nobody would have thought going into 244 00:12:15,400 --> 00:12:18,880 Speaker 1: twenty twenty four twenty twenty five of ge Vernova as 245 00:12:18,880 --> 00:12:19,880 Speaker 1: an AI stock. 246 00:12:20,160 --> 00:12:22,160 Speaker 2: But go look at the performance of that stock. 247 00:12:22,360 --> 00:12:25,360 Speaker 1: Meaning you know, back to your stage coach example, it's 248 00:12:25,400 --> 00:12:28,200 Speaker 1: not the people that were digging the gold, it's people 249 00:12:28,240 --> 00:12:32,560 Speaker 1: that are supplying the things necessary to harvest gold, to 250 00:12:32,679 --> 00:12:36,400 Speaker 1: harvest energy. So there's a lot of beneficiaries all the 251 00:12:36,480 --> 00:12:40,320 Speaker 1: time in emerging technologies. Here's the all Worth advice. Don't 252 00:12:40,360 --> 00:12:43,560 Speaker 1: gamble on the future, invested it broadly and let the 253 00:12:43,600 --> 00:12:44,560 Speaker 1: winners come to you. 254 00:12:45,840 --> 00:12:46,760 Speaker 2: Just how much. 255 00:12:46,559 --> 00:12:49,560 Speaker 1: Should I be investing outside the United States of America. 256 00:12:49,679 --> 00:12:52,280 Speaker 1: It's a question. We get a lot. We'll share some 257 00:12:52,320 --> 00:12:55,320 Speaker 1: perspective on that coming up next. You're listening to Simply 258 00:12:55,320 --> 00:12:58,120 Speaker 1: Money presented by all Worth Financial on fifty five KRC, 259 00:12:58,679 --> 00:13:06,360 Speaker 1: the talk station. You're listening to Simply Money presented by 260 00:13:06,400 --> 00:13:10,360 Speaker 1: all Worth Financial Laumbob Sponsller along with Brian James. If 261 00:13:10,360 --> 00:13:13,280 Speaker 1: you can't listen to Simply Money live every night, subscribe 262 00:13:13,320 --> 00:13:15,600 Speaker 1: and get our daily podcast. And if you think your 263 00:13:15,640 --> 00:13:19,000 Speaker 1: friends or your family could use some financial advice, let 264 00:13:19,040 --> 00:13:21,720 Speaker 1: them know about us as well. Just search Simply Money 265 00:13:22,000 --> 00:13:25,520 Speaker 1: on the iHeart app or wherever you find your podcast. 266 00:13:26,440 --> 00:13:29,840 Speaker 1: From managing Money as a Team to navigating retirement when 267 00:13:29,960 --> 00:13:34,520 Speaker 1: life feels more expensive than ever, We're answering your pressing 268 00:13:34,559 --> 00:13:36,360 Speaker 1: financial questions straight ahead. 269 00:13:36,360 --> 00:13:38,800 Speaker 2: At six forty three. 270 00:13:38,800 --> 00:13:43,400 Speaker 1: Most American investors are heavily concentrated in one market, the 271 00:13:43,559 --> 00:13:44,400 Speaker 1: United States. 272 00:13:44,440 --> 00:13:46,320 Speaker 2: It's what we know, it's where we. 273 00:13:46,320 --> 00:13:50,440 Speaker 1: Live, and quite frankly, it's worked really really well for 274 00:13:50,520 --> 00:13:55,040 Speaker 1: the past decade plus, if not decades. But we should 275 00:13:55,200 --> 00:13:58,199 Speaker 1: at least be willing to shift the conversation a little 276 00:13:58,240 --> 00:14:03,080 Speaker 1: bit from investing in country to investing in companies. The 277 00:14:03,120 --> 00:14:06,120 Speaker 1: global economy does not stop at our borders, and your 278 00:14:06,160 --> 00:14:10,680 Speaker 1: portfolio shouldn't either, Brian twenty twenty five. Is you know, 279 00:14:10,720 --> 00:14:14,040 Speaker 1: we've got some data backed reasons to kind of revisit 280 00:14:14,520 --> 00:14:18,280 Speaker 1: this whole international investing topic because it is valid and 281 00:14:18,320 --> 00:14:21,560 Speaker 1: it's something people kind of ignore or forget about over time. 282 00:14:21,920 --> 00:14:24,760 Speaker 2: Well, yeah, there's been a huge focus on reducing the 283 00:14:24,840 --> 00:14:27,160 Speaker 2: expense of my investment portfolio, and that's a good thing 284 00:14:27,160 --> 00:14:29,080 Speaker 2: to focus on, but it has led a lot of 285 00:14:29,120 --> 00:14:31,400 Speaker 2: people down at the bottom of the funnel to conclude 286 00:14:31,440 --> 00:14:33,440 Speaker 2: that there's just nothing but the S and P five hundred. 287 00:14:33,440 --> 00:14:35,080 Speaker 2: All I need is this S and P five hundred 288 00:14:35,320 --> 00:14:37,920 Speaker 2: index fund, and that's all I'll ever need because nothing 289 00:14:37,960 --> 00:14:42,119 Speaker 2: happens anywhere else. Well, that's a good core of a portfolio, 290 00:14:42,120 --> 00:14:44,720 Speaker 2: because the US does make up a big chunk of 291 00:14:44,760 --> 00:14:48,360 Speaker 2: the overall global economy about sixty five percent. Right, sixty 292 00:14:48,360 --> 00:14:51,080 Speaker 2: five percent of economic activity occurs right here in the 293 00:14:51,200 --> 00:14:54,160 Speaker 2: United States. But that means thirty five percent doesn't. That 294 00:14:54,280 --> 00:14:57,040 Speaker 2: is trillions of dollars in value that you're ignoring if 295 00:14:57,080 --> 00:14:59,400 Speaker 2: that's not something that you represent in your portfolio. So 296 00:14:59,440 --> 00:15:01,920 Speaker 2: let's give an ex Let's say you said I only 297 00:15:01,960 --> 00:15:04,320 Speaker 2: want to invest in US car companies because the US 298 00:15:04,400 --> 00:15:05,920 Speaker 2: is all that's the only place that there is to 299 00:15:05,920 --> 00:15:09,480 Speaker 2: deal with. You'd have at this point, Ford, General Motors 300 00:15:09,560 --> 00:15:12,600 Speaker 2: and Tesla. There's a handful of other car companies out 301 00:15:12,600 --> 00:15:14,720 Speaker 2: there that have done okay. So that is not a 302 00:15:14,720 --> 00:15:17,000 Speaker 2: diversified bet on the auto industry. That's just a slice 303 00:15:17,000 --> 00:15:21,080 Speaker 2: of it. You're ignoring Toyota, Honda, Hyundai, BMW, Volkswagen, Ferrari 304 00:15:21,880 --> 00:15:24,160 Speaker 2: byd in China. That's a new one on me. But 305 00:15:24,360 --> 00:15:26,040 Speaker 2: still it's out there, and there are billions of people 306 00:15:26,040 --> 00:15:28,560 Speaker 2: who buy cars that aren't built in the United States. 307 00:15:28,760 --> 00:15:31,760 Speaker 2: Jaguar land Rover are now based in India. So if 308 00:15:31,800 --> 00:15:34,160 Speaker 2: you simply, if you simply focus so much on that, 309 00:15:34,360 --> 00:15:36,640 Speaker 2: you're going to leave an awful lot of economic activity 310 00:15:36,640 --> 00:15:38,920 Speaker 2: on the table simply because it doesn't occur within the 311 00:15:38,960 --> 00:15:41,520 Speaker 2: boundary of the United States. That does not mean it's 312 00:15:41,520 --> 00:15:45,320 Speaker 2: not profitable activity. And the winds will change direction on occasion, 313 00:15:45,400 --> 00:15:46,480 Speaker 2: as they have this year. 314 00:15:47,960 --> 00:15:50,520 Speaker 1: Well, Brian, I know you love history. I do as well, 315 00:15:50,640 --> 00:15:54,360 Speaker 1: So let's talk about Japan. For example, from nineteen seventy 316 00:15:54,400 --> 00:15:59,360 Speaker 1: to nineteen eighty nine, Japanese equities return an average of 317 00:15:59,400 --> 00:16:03,400 Speaker 1: twenty two sent per year. People thought Japan at that time, 318 00:16:03,440 --> 00:16:06,920 Speaker 1: and I remember this. I remember when the Hondas started 319 00:16:06,960 --> 00:16:10,360 Speaker 1: coming out in droves. People thought Japan was going to 320 00:16:10,440 --> 00:16:14,360 Speaker 1: absolutely dominate the global economy forever. And then came the 321 00:16:14,440 --> 00:16:21,120 Speaker 1: nineteen nineties. US technology took over Microsoft, Intel, eventually Apple, Amazon, Google. 322 00:16:21,680 --> 00:16:25,440 Speaker 1: Nobody had even heard of these companies in the late 323 00:16:25,480 --> 00:16:28,720 Speaker 1: seventies to early eighties, but the tide certainly did shift. 324 00:16:28,960 --> 00:16:32,240 Speaker 1: The point here is no country in and of itself, 325 00:16:32,360 --> 00:16:36,600 Speaker 1: is it relates to stocks dominates forever. Yes, the US 326 00:16:36,680 --> 00:16:39,760 Speaker 1: has been on a great run, especially post two thousand 327 00:16:39,800 --> 00:16:43,200 Speaker 1: and nine, but there have been decades like the nineteen 328 00:16:43,280 --> 00:16:47,960 Speaker 1: seventies where the US brian actually underperformed global markets. 329 00:16:48,280 --> 00:16:51,360 Speaker 2: Yeah, that's right, and that's actually happening right now. But 330 00:16:51,520 --> 00:16:55,080 Speaker 2: technically in twenty twenty five, the US is underperforming global markets. 331 00:16:55,160 --> 00:16:59,080 Speaker 2: International stocks are doing better than US stocks. Now. Everybody's 332 00:16:59,080 --> 00:17:00,960 Speaker 2: having a pretty good year, right this is we could 333 00:17:01,000 --> 00:17:02,640 Speaker 2: be looking, knock on wood, We could be looking at 334 00:17:02,680 --> 00:17:05,439 Speaker 2: the third double digit rate of growth in the United 335 00:17:05,480 --> 00:17:08,880 Speaker 2: States here by the end of this year. But international stocks, 336 00:17:08,920 --> 00:17:12,679 Speaker 2: both at the big established developed level as well as 337 00:17:12,720 --> 00:17:15,119 Speaker 2: emerging markets, are all doing better. And the reason for 338 00:17:15,240 --> 00:17:17,760 Speaker 2: This is because you for better or for worse, regardless 339 00:17:17,800 --> 00:17:19,800 Speaker 2: of the side you are on the political aisle. And 340 00:17:19,800 --> 00:17:21,639 Speaker 2: we're not going to turn this into politics, of course, 341 00:17:21,760 --> 00:17:23,959 Speaker 2: But the reason is the United States has chosen to 342 00:17:24,040 --> 00:17:27,960 Speaker 2: portray itself drastically differently than it has in the past, 343 00:17:27,960 --> 00:17:30,920 Speaker 2: and that is forcing countries and companies who are internationally 344 00:17:30,960 --> 00:17:32,760 Speaker 2: based to say, well, if it's going to be harder 345 00:17:32,800 --> 00:17:36,040 Speaker 2: to do business there, maybe we're overlooking some opportunities elsewhere 346 00:17:36,040 --> 00:17:38,280 Speaker 2: in the world to build business partnerships. And that is 347 00:17:38,320 --> 00:17:41,399 Speaker 2: exactly what has happened. The market has recognized that dollars 348 00:17:41,440 --> 00:17:45,119 Speaker 2: have flowed into internationally based non US companies at a 349 00:17:45,160 --> 00:17:47,720 Speaker 2: faster pace this year than they have US companies. That 350 00:17:47,760 --> 00:17:49,760 Speaker 2: doesn't mean that the US market is down. That's not 351 00:17:49,800 --> 00:17:51,600 Speaker 2: the case at all. Everybody's having a pretty good year 352 00:17:51,640 --> 00:17:55,240 Speaker 2: thus far, again furiously knocking on wood, but international companies 353 00:17:55,240 --> 00:17:57,280 Speaker 2: are having a slightly better year. That is why we 354 00:17:57,359 --> 00:17:59,560 Speaker 2: have we always have these discussions about make sure you've 355 00:17:59,560 --> 00:18:02,359 Speaker 2: got a diverse, fied portfolio so that you're not completely 356 00:18:02,400 --> 00:18:04,840 Speaker 2: missing the vote in some other area that maybe didn't 357 00:18:04,840 --> 00:18:07,040 Speaker 2: do so great last year, but all of a sudden 358 00:18:07,080 --> 00:18:08,280 Speaker 2: has taken the lead this year. 359 00:18:09,160 --> 00:18:12,240 Speaker 1: Yeah, a couple of examples, you know, where international companies 360 00:18:12,320 --> 00:18:16,280 Speaker 1: are just as innovative, if not more innovated than their 361 00:18:16,400 --> 00:18:21,159 Speaker 1: US counterparts. Samsung, for example, is really pushing the boundaries 362 00:18:21,200 --> 00:18:27,440 Speaker 1: in semiconductor chips. Taiwan semiconductor is critical in AI technology, 363 00:18:28,000 --> 00:18:30,720 Speaker 1: and let's face it, a lot of European firms lead 364 00:18:30,960 --> 00:18:35,480 Speaker 1: the globe here in innovation in green energy technology. 365 00:18:35,520 --> 00:18:38,160 Speaker 2: So there's a lot of innovation going on all over 366 00:18:38,200 --> 00:18:39,760 Speaker 2: the world and. 367 00:18:40,000 --> 00:18:43,000 Speaker 1: It's another reason to you know, be open to diversifying 368 00:18:43,160 --> 00:18:46,920 Speaker 1: your portfolio. That being said, this is where some some 369 00:18:46,960 --> 00:18:50,879 Speaker 1: good i would say managed portfolios, and it's worth paying 370 00:18:50,920 --> 00:18:54,000 Speaker 1: somebody to really, you know, kick the tires and look 371 00:18:54,000 --> 00:18:56,400 Speaker 1: at some of these companies because when you get into 372 00:18:56,880 --> 00:19:00,400 Speaker 1: investing internationally, there's different regulatory environments. 373 00:19:00,760 --> 00:19:04,399 Speaker 2: There's different corporate corporate government governance rules. 374 00:19:05,400 --> 00:19:07,800 Speaker 1: This is where it is helpful a lot of times 375 00:19:07,800 --> 00:19:10,400 Speaker 1: to have boots on the ground really looking at this 376 00:19:10,960 --> 00:19:14,600 Speaker 1: on a company by company basis, not just saying well, 377 00:19:14,680 --> 00:19:17,679 Speaker 1: I'm gonna just throw money at the Japanese market or 378 00:19:17,680 --> 00:19:21,080 Speaker 1: at the Taiwan you know, because things are different literally 379 00:19:21,200 --> 00:19:23,479 Speaker 1: company by company and region by region. 380 00:19:24,400 --> 00:19:26,520 Speaker 2: So it's important to talk to your fiduciar advisor. Just 381 00:19:26,520 --> 00:19:28,679 Speaker 2: make sure you've got the right level of exposure to 382 00:19:28,720 --> 00:19:31,160 Speaker 2: offset the other risks you have in your portfolio. That's 383 00:19:31,160 --> 00:19:34,199 Speaker 2: the whole point of asset allocation and diversification. But it 384 00:19:34,240 --> 00:19:36,720 Speaker 2: all starts with a financial plan. Anyway, Before you worry 385 00:19:36,720 --> 00:19:39,000 Speaker 2: about what color bricks you're gonna put on your house, 386 00:19:39,040 --> 00:19:41,440 Speaker 2: you need to have a blueprint to begin with. Here's 387 00:19:41,440 --> 00:19:42,240 Speaker 2: the all Worth advice. 388 00:19:42,320 --> 00:19:46,840 Speaker 1: Don't invest in countries, invest in great companies wherever they are. 389 00:19:47,600 --> 00:19:50,760 Speaker 1: Coming up next, an update on the local real estate market. 390 00:19:50,800 --> 00:19:53,360 Speaker 1: Our price is cooling off? Or is the bidding more 391 00:19:53,520 --> 00:19:55,639 Speaker 1: Era still alive? And well? 392 00:19:56,359 --> 00:19:58,760 Speaker 2: Our real estate expert is in next to talk about 393 00:19:58,800 --> 00:19:59,280 Speaker 2: all of that. 394 00:19:59,320 --> 00:20:01,840 Speaker 1: You're listening to Simply Money presented by all Worth Financial 395 00:20:01,920 --> 00:20:09,800 Speaker 1: on fifty five KRC, the talk station. You're listening to 396 00:20:09,800 --> 00:20:12,200 Speaker 1: Simply Money presented by all Worth Financial on Bob spun 397 00:20:12,280 --> 00:20:15,160 Speaker 1: Seller along with Brian James, and we're joined tonight by 398 00:20:15,200 --> 00:20:19,280 Speaker 1: our real estate guru, Michelle Sloan. Michelle, thanks as always 399 00:20:19,320 --> 00:20:21,480 Speaker 1: for making time for us tonight. We want to we 400 00:20:21,520 --> 00:20:24,720 Speaker 1: want to kick things off tonight just by getting your 401 00:20:24,760 --> 00:20:28,560 Speaker 1: perspective on what the current environment is out there. In 402 00:20:28,600 --> 00:20:31,399 Speaker 1: the real estate market, the residential real estate market. I mean, 403 00:20:31,440 --> 00:20:33,480 Speaker 1: let's face it, rates have come down a little bit. 404 00:20:34,040 --> 00:20:36,359 Speaker 1: What have you seen changed since the last time we 405 00:20:36,440 --> 00:20:39,000 Speaker 1: talked to you about You know what, where's the market at. 406 00:20:39,040 --> 00:20:42,000 Speaker 1: I know, the weather's cooling, everybody's back to school. 407 00:20:42,160 --> 00:20:45,080 Speaker 2: Are things slowing down? Are things speeding up? With these 408 00:20:45,160 --> 00:20:47,680 Speaker 2: rates coming down? Give us a good give us. 409 00:20:47,600 --> 00:20:51,280 Speaker 1: A good overall view of the residential real estate market 410 00:20:51,600 --> 00:20:52,760 Speaker 1: in Greater Cincinnati. 411 00:20:53,440 --> 00:20:57,800 Speaker 3: Well, I'll tell you what the biggest difference is. We 412 00:20:57,840 --> 00:21:01,919 Speaker 3: are seeing a shift in the market to more balanced market. 413 00:21:02,000 --> 00:21:06,239 Speaker 3: And what that means is it's no longer strictly a 414 00:21:06,320 --> 00:21:10,640 Speaker 3: seller's market in Cincinnati, Ohio. We have had a seller's 415 00:21:10,720 --> 00:21:17,080 Speaker 3: market for years actually, and now in some areas of 416 00:21:17,160 --> 00:21:20,000 Speaker 3: Cincinnati we're seeing more of a buyer's market. What does 417 00:21:20,040 --> 00:21:23,719 Speaker 3: that mean? So it's all about supply and demand, and 418 00:21:23,760 --> 00:21:27,080 Speaker 3: you guys are very familiar with that. But you know, 419 00:21:27,720 --> 00:21:32,400 Speaker 3: the supply, we've had more buyers than we've had homes 420 00:21:32,440 --> 00:21:36,600 Speaker 3: for sale. But now we're balancing out the market. And 421 00:21:36,640 --> 00:21:39,320 Speaker 3: so this is a good thing for buyers because there's 422 00:21:39,440 --> 00:21:42,919 Speaker 3: opportunities out there. When it's a buyer's market, we have 423 00:21:43,080 --> 00:21:48,280 Speaker 3: more homes on the market and maybe fewer buyers. Therefore, 424 00:21:48,280 --> 00:21:50,879 Speaker 3: the buyers that are out there are going to have 425 00:21:50,920 --> 00:21:54,760 Speaker 3: an opportunity. They may not be able to they may 426 00:21:54,760 --> 00:21:58,800 Speaker 3: not have to actually compete against a whole bunch of 427 00:21:58,840 --> 00:22:01,600 Speaker 3: other buyers, and so they might be able to get 428 00:22:01,600 --> 00:22:04,240 Speaker 3: a home for I'm not going to say the price 429 00:22:04,359 --> 00:22:07,800 Speaker 3: is going to be dramatically lower, because we are definitely 430 00:22:07,880 --> 00:22:12,200 Speaker 3: seeing the prices are still increasing in the Cincinnati area 431 00:22:12,359 --> 00:22:15,400 Speaker 3: as far as the home price median prices are up 432 00:22:15,760 --> 00:22:19,800 Speaker 3: five percent year over year, and so we're seeing still 433 00:22:19,840 --> 00:22:23,800 Speaker 3: a slight increase. It's not the crazy increases though that 434 00:22:23,880 --> 00:22:27,600 Speaker 3: we saw in the past several years, where you know, 435 00:22:27,640 --> 00:22:31,320 Speaker 3: the market has increased ten or fifteen percent year over year, 436 00:22:31,359 --> 00:22:36,040 Speaker 3: which is just crazy to even think about. So I 437 00:22:36,080 --> 00:22:39,080 Speaker 3: would say the biggest change that we're seeing is it's 438 00:22:39,240 --> 00:22:43,320 Speaker 3: no longer a seller's market. We have a more balanced market, 439 00:22:43,359 --> 00:22:46,880 Speaker 3: and it's leaning a little bit towards a buyer's market. 440 00:22:47,200 --> 00:22:50,840 Speaker 3: So days on market, meaning how long a home has 441 00:22:50,880 --> 00:22:54,320 Speaker 3: to sit on the market before someone actually gets under 442 00:22:54,400 --> 00:22:58,600 Speaker 3: contract and buys that property, is taking longer instead of 443 00:22:58,720 --> 00:23:02,200 Speaker 3: just a couple of days, which it has been over 444 00:23:02,240 --> 00:23:05,080 Speaker 3: the last few years, we're looking at a forty nine 445 00:23:05,160 --> 00:23:09,560 Speaker 3: day average time on market forty five days average time 446 00:23:09,600 --> 00:23:12,000 Speaker 3: on market, so that's a huge change. 447 00:23:12,240 --> 00:23:17,720 Speaker 2: So, Michelle, the question I have is, so I am 448 00:23:17,720 --> 00:23:19,760 Speaker 2: also married to Michelle. That's why I'm stammering here because 449 00:23:19,800 --> 00:23:21,040 Speaker 2: I was going to say her name, and I said 450 00:23:21,080 --> 00:23:22,760 Speaker 2: your name, and then I don't know who anybody is 451 00:23:22,760 --> 00:23:25,440 Speaker 2: anywhere anyway. Michelle and I aren't going anywhere anytime soon, 452 00:23:25,480 --> 00:23:27,760 Speaker 2: but we are sneaking up on empty nest time of life. 453 00:23:27,760 --> 00:23:29,400 Speaker 2: So I'm sniffing around a little bit just to see 454 00:23:29,400 --> 00:23:31,439 Speaker 2: what things look like. That means, you know, in this 455 00:23:31,520 --> 00:23:33,239 Speaker 2: day and age. I've got a few apps going and 456 00:23:33,280 --> 00:23:35,119 Speaker 2: just kind of watching different properties. We're not going to 457 00:23:35,119 --> 00:23:37,200 Speaker 2: play some bit or anything anytime soon, So anybody listening 458 00:23:37,240 --> 00:23:41,440 Speaker 2: to me who knows, leave me alone anyway. But anyway, 459 00:23:41,760 --> 00:23:43,960 Speaker 2: so I've got these apps. If your wife. 460 00:23:43,640 --> 00:23:46,280 Speaker 1: Starts, if your wife starts looking around you, you might 461 00:23:46,320 --> 00:23:49,000 Speaker 1: be making a transaction here sooner than you think you are. 462 00:23:49,119 --> 00:23:51,560 Speaker 2: Hold on my phone. I'm just trying to how this 463 00:23:51,640 --> 00:23:52,200 Speaker 2: really works. 464 00:23:53,200 --> 00:23:55,800 Speaker 3: Now you've started something with the other, Michelle. 465 00:23:55,520 --> 00:23:58,080 Speaker 2: Look out, it's the other way around. I'm the one 466 00:23:58,080 --> 00:24:00,760 Speaker 2: feeling Nancy but this isn't having anytime soon. But my 467 00:24:00,840 --> 00:24:03,040 Speaker 2: question was, I've got I've got the the app here 468 00:24:03,359 --> 00:24:05,600 Speaker 2: of course, all these different apps, And just in the 469 00:24:05,680 --> 00:24:08,000 Speaker 2: last two weeks, it seems like all of these houses 470 00:24:08,000 --> 00:24:09,919 Speaker 2: that I've sniffed around, right, they're all getting shoved in 471 00:24:09,920 --> 00:24:11,240 Speaker 2: my face. I may not even like it, but I 472 00:24:11,280 --> 00:24:13,040 Speaker 2: looked at it once. Therefore the app things they love it. 473 00:24:13,600 --> 00:24:18,240 Speaker 2: But anyway, all of these are coming up with price reductions, 474 00:24:18,359 --> 00:24:20,399 Speaker 2: so it seems like everybody know the sellers are shutting 475 00:24:20,400 --> 00:24:22,480 Speaker 2: the sense of this too. But at the same time 476 00:24:22,560 --> 00:24:24,879 Speaker 2: this is happening when we've had a cut in interest rates, 477 00:24:24,880 --> 00:24:27,080 Speaker 2: I myself have been advising clients who have one of 478 00:24:27,119 --> 00:24:29,360 Speaker 2: these six to seven percent mortgages that hey, it might 479 00:24:29,400 --> 00:24:31,679 Speaker 2: be time or we'll hire in, that it might be 480 00:24:31,720 --> 00:24:35,800 Speaker 2: time to refinance. Soul could rates coming down goose this 481 00:24:35,960 --> 00:24:38,360 Speaker 2: back into a seller's market if the buyers come back 482 00:24:38,359 --> 00:24:39,240 Speaker 2: and droves. 483 00:24:39,400 --> 00:24:43,160 Speaker 3: Potentially, I think that everybody's just being a little bit 484 00:24:43,240 --> 00:24:46,840 Speaker 3: cautious or a lot cautious right now. I don't expect 485 00:24:46,920 --> 00:24:51,439 Speaker 3: us to do an immediate switch overnight. So rates have 486 00:24:51,520 --> 00:24:55,199 Speaker 3: come down really really slowly, I mean like tenths of 487 00:24:55,240 --> 00:24:58,359 Speaker 3: a point we're still hovering around six and a quarter, 488 00:24:58,800 --> 00:25:01,040 Speaker 3: you know, depending on the type blan that you get 489 00:25:01,080 --> 00:25:06,800 Speaker 3: and depending on your specific financial status and credit and 490 00:25:06,840 --> 00:25:11,240 Speaker 3: all of that. So honestly, I don't expect it to 491 00:25:11,320 --> 00:25:16,400 Speaker 3: turn into a seller's market again overnight. But here's the thing. 492 00:25:16,600 --> 00:25:20,680 Speaker 3: I had four listings in the last thirty days. Two 493 00:25:20,720 --> 00:25:26,000 Speaker 3: of them sold within a day in multiple offers. Two 494 00:25:26,119 --> 00:25:30,320 Speaker 3: of them are still sitting, and there's no seemingly rhyme 495 00:25:30,440 --> 00:25:34,040 Speaker 3: or reason why the two that's sold really really quickly, 496 00:25:34,560 --> 00:25:38,120 Speaker 3: although you know, there were great homes, great properties. They 497 00:25:38,200 --> 00:25:41,760 Speaker 3: both had swimming pools, which to me leads me to 498 00:25:41,840 --> 00:25:45,320 Speaker 3: believe that swimming pools are definitely something that people are 499 00:25:45,359 --> 00:25:50,199 Speaker 3: looking for. The other two are they're great homes in 500 00:25:50,280 --> 00:25:54,040 Speaker 3: great neighborhoods in great areas, and you know, we have 501 00:25:54,160 --> 00:25:57,760 Speaker 3: had to have some price changes, so you know, I 502 00:25:57,960 --> 00:26:01,080 Speaker 3: do think that the longer sell are on the market, 503 00:26:01,119 --> 00:26:04,360 Speaker 3: the more nervous they get, and they tend to want 504 00:26:04,359 --> 00:26:06,240 Speaker 3: to point fingers at the real. 505 00:26:06,160 --> 00:26:08,120 Speaker 2: Estate agent, like what is going on? 506 00:26:08,800 --> 00:26:11,399 Speaker 3: So don't do that. Don't put your finger at me 507 00:26:12,480 --> 00:26:14,920 Speaker 3: or at your real estate agent, because trust me, if 508 00:26:15,680 --> 00:26:18,119 Speaker 3: there was a buyer out there wanting to purchase your home. 509 00:26:18,520 --> 00:26:19,879 Speaker 2: They would come. 510 00:26:20,000 --> 00:26:21,639 Speaker 3: You know, you put it on the market and they 511 00:26:21,640 --> 00:26:22,120 Speaker 3: will come. 512 00:26:23,280 --> 00:26:25,480 Speaker 1: Well, Michelle, in the minute or so we've got left. 513 00:26:25,520 --> 00:26:28,200 Speaker 1: I mean, let's face it, houses are like any other commodity. 514 00:26:28,280 --> 00:26:31,000 Speaker 1: It's correct me if I'm wrong. It's supply and demand. 515 00:26:31,440 --> 00:26:35,000 Speaker 1: You use the word cautious. What is causing people to 516 00:26:35,040 --> 00:26:39,640 Speaker 1: be cautious right now? And is this affecting supply more 517 00:26:39,680 --> 00:26:43,600 Speaker 1: than demand or demand more than supply, meaning has the 518 00:26:43,640 --> 00:26:48,080 Speaker 1: supply gone up while demand has gone down. What's causing 519 00:26:48,119 --> 00:26:49,440 Speaker 1: this cautiousness out there? 520 00:26:49,960 --> 00:26:50,240 Speaker 2: Yeah? 521 00:26:50,280 --> 00:26:53,520 Speaker 3: Absolutely. I think that the number of people who have 522 00:26:53,560 --> 00:26:56,840 Speaker 3: been stuck in their home for a long time, They're like, 523 00:26:57,000 --> 00:26:59,720 Speaker 3: it's time for me to make a move, and some 524 00:26:59,760 --> 00:27:04,200 Speaker 3: people people just miss the bubble. This fall has been very, 525 00:27:04,359 --> 00:27:08,320 Speaker 3: very interesting, and timing is everything. If you want to 526 00:27:08,359 --> 00:27:10,320 Speaker 3: sell your home, you've got to put it on the market. 527 00:27:10,359 --> 00:27:12,959 Speaker 3: For the most part, people have to know that it's available, 528 00:27:13,520 --> 00:27:16,240 Speaker 3: and so we just have a lot of buyers who 529 00:27:16,400 --> 00:27:19,960 Speaker 3: are exhausted with the process. They don't want to get 530 00:27:20,000 --> 00:27:23,359 Speaker 3: into multiple offers. They do see the rates coming down, 531 00:27:23,840 --> 00:27:28,560 Speaker 3: but I think everybody's just overwhelmed with the situation in 532 00:27:28,600 --> 00:27:31,840 Speaker 3: life right now. And a lot of buyers are saying, yeah, 533 00:27:31,880 --> 00:27:33,960 Speaker 3: I'm just going to wait. I'm going to sit tight 534 00:27:34,040 --> 00:27:36,600 Speaker 3: for a while. So I think there are fewer buyers 535 00:27:36,640 --> 00:27:39,160 Speaker 3: out there and a few more sellers that are ready 536 00:27:39,200 --> 00:27:39,760 Speaker 3: to make a move. 537 00:27:40,400 --> 00:27:40,920 Speaker 2: Interesting. 538 00:27:41,240 --> 00:27:43,720 Speaker 1: You're listening to Simply Money isented by all Worth Financial 539 00:27:43,760 --> 00:27:52,639 Speaker 1: on fifty five KRC, the talk station. You're listening to 540 00:27:52,640 --> 00:27:55,480 Speaker 1: Simply Money presented by all Worth Financial. I'm Bob Sponsller 541 00:27:55,520 --> 00:27:58,439 Speaker 1: along with Brian James. Do you have a financial question 542 00:27:58,520 --> 00:28:00,480 Speaker 1: you'd like for us to answer? There there's a red 543 00:28:00,480 --> 00:28:02,879 Speaker 1: button you can click while you're listening to the show. 544 00:28:03,040 --> 00:28:05,760 Speaker 1: If you're listening to the show from the iHeart app, 545 00:28:05,840 --> 00:28:09,120 Speaker 1: simply record your question and it will come straight to us. 546 00:28:10,119 --> 00:28:12,919 Speaker 1: All right, Brian Paul and Fort Mitchell says, we have 547 00:28:13,119 --> 00:28:16,359 Speaker 1: more than we'll ever spend, but I still can't shake 548 00:28:16,440 --> 00:28:18,879 Speaker 1: the fear of running out. Is that just how people 549 00:28:18,880 --> 00:28:22,840 Speaker 1: are wired? Or does it mean our plans not clear enough? 550 00:28:23,280 --> 00:28:25,359 Speaker 2: I love when we get questions from the forts, because 551 00:28:25,359 --> 00:28:27,600 Speaker 2: I feel like I'm talking to our soldiers on the 552 00:28:27,640 --> 00:28:30,880 Speaker 2: front lines of northern Kentucky again, protecting us from the 553 00:28:30,960 --> 00:28:34,639 Speaker 2: hordes of Florence. Kentucky. Paul and Fort Mitchell. So what 554 00:28:34,720 --> 00:28:36,760 Speaker 2: you just did, was you just the question used to ask, 555 00:28:36,920 --> 00:28:39,080 Speaker 2: just basically gave Bob and I job security for a 556 00:28:39,080 --> 00:28:41,320 Speaker 2: good long time. There's a lot of people out there 557 00:28:41,320 --> 00:28:43,880 Speaker 2: in this situation. I know I've got enough, but I 558 00:28:43,920 --> 00:28:46,000 Speaker 2: still have this fear that it's not. I don't. I 559 00:28:46,040 --> 00:28:47,800 Speaker 2: just can't kind of can't see the future. And yes, 560 00:28:47,880 --> 00:28:50,200 Speaker 2: that is very much how people are wired. Paul. That 561 00:28:50,360 --> 00:28:52,280 Speaker 2: voice in the back of your head that's telling you 562 00:28:52,280 --> 00:28:54,720 Speaker 2: you don't have enough is the same voice that told 563 00:28:54,800 --> 00:28:57,280 Speaker 2: you to save all of that beginning from the from 564 00:28:57,280 --> 00:28:59,240 Speaker 2: the very beginning of your career. So we'll go ahead 565 00:28:59,240 --> 00:29:00,560 Speaker 2: and assume you've got a four in case, some kind 566 00:29:00,600 --> 00:29:03,240 Speaker 2: of retirement plan. You made a choice at some point 567 00:29:03,440 --> 00:29:06,080 Speaker 2: to start to carve out money away from yourself. You 568 00:29:06,120 --> 00:29:08,680 Speaker 2: can spend this week and stick it in a savings plan. 569 00:29:08,720 --> 00:29:10,040 Speaker 2: You did that. I don't know. I've no idea how 570 00:29:10,040 --> 00:29:12,160 Speaker 2: old Paul is. Let's say it's thirty years ago. Who knows, 571 00:29:12,720 --> 00:29:14,600 Speaker 2: But you did that, and now all of a sudden 572 00:29:15,000 --> 00:29:19,440 Speaker 2: you've got options. What you're running into is the bigger 573 00:29:19,560 --> 00:29:23,520 Speaker 2: mountain behind the initial fear of not having enough money. 574 00:29:23,520 --> 00:29:25,640 Speaker 2: Oh my gosh, we do have enough. Money. But now 575 00:29:25,920 --> 00:29:28,320 Speaker 2: how does it all work? And so the answer to 576 00:29:28,360 --> 00:29:30,840 Speaker 2: this is, put together financial plan, run some actual numbers, 577 00:29:30,880 --> 00:29:32,760 Speaker 2: figure out what it is that you spend, what does 578 00:29:32,800 --> 00:29:35,040 Speaker 2: it cost your household to stay afloat for a month, 579 00:29:35,480 --> 00:29:37,880 Speaker 2: and then string that out for thirty thirty five years, 580 00:29:37,920 --> 00:29:40,920 Speaker 2: whatever the life expectancy is. And then on top of 581 00:29:40,920 --> 00:29:42,800 Speaker 2: that add your other goals. You know, you might have 582 00:29:42,840 --> 00:29:44,600 Speaker 2: a mortgage in the mix, maybe for a few more years, 583 00:29:44,640 --> 00:29:47,000 Speaker 2: maybe you're helping parents, kids, and so forth. The answer 584 00:29:47,040 --> 00:29:49,600 Speaker 2: is just simply do the math, run a plan based 585 00:29:49,640 --> 00:29:52,200 Speaker 2: on a hunky doory scenario, and then do it again. 586 00:29:52,360 --> 00:29:55,000 Speaker 2: But take away twenty five percent of your financial networth. 587 00:29:55,360 --> 00:29:57,920 Speaker 2: That is the fear that most people have, which is okay, 588 00:29:57,920 --> 00:29:59,560 Speaker 2: I'm okay now, but what if a two thousand and 589 00:29:59,560 --> 00:30:01,760 Speaker 2: eight comes in sneaks up on me. Will I be okay? Then, 590 00:30:02,200 --> 00:30:05,360 Speaker 2: exhil Paul, congratulate yourself for doing what you've done, But 591 00:30:05,520 --> 00:30:08,000 Speaker 2: now look forward, stop looking in the past, and look 592 00:30:08,040 --> 00:30:11,160 Speaker 2: forward and run some projections for yourself. All right, Moving 593 00:30:11,160 --> 00:30:13,600 Speaker 2: on to Emily and Levin, and Emily says she's finally 594 00:30:13,600 --> 00:30:15,240 Speaker 2: on a spot where they can afford to be generous, 595 00:30:15,240 --> 00:30:17,200 Speaker 2: so they want to start sharing their wealth that they've built, 596 00:30:17,640 --> 00:30:20,240 Speaker 2: but it starts to feel harder than saving ever did. 597 00:30:20,400 --> 00:30:22,600 Speaker 2: So how do you decide when you've given enough? You know, 598 00:30:22,800 --> 00:30:24,920 Speaker 2: when have you done your duty versus when are you 599 00:30:24,960 --> 00:30:26,200 Speaker 2: sacrificing too much? Bob? 600 00:30:27,600 --> 00:30:29,920 Speaker 1: Well, Emily, it's hard to tell from your question whether 601 00:30:29,960 --> 00:30:34,920 Speaker 1: you're talking about giving to adult children, let's say, or grandchildren. 602 00:30:34,520 --> 00:30:37,040 Speaker 2: Or giving to charity or all the above. 603 00:30:37,360 --> 00:30:40,280 Speaker 1: So you know, there's a numbers part of this answer, 604 00:30:40,320 --> 00:30:42,320 Speaker 1: which is have a good financial plan and kind of 605 00:30:42,360 --> 00:30:44,560 Speaker 1: know where the boundaries are in terms of how much 606 00:30:44,600 --> 00:30:47,520 Speaker 1: can you afford to give without putting your long term 607 00:30:47,520 --> 00:30:51,520 Speaker 1: retirement you know, plan in jeopardly, in jeopardy, in jeopardy. 608 00:30:52,680 --> 00:30:55,400 Speaker 1: But then I think what you're kind of implying here 609 00:30:55,480 --> 00:30:58,400 Speaker 1: is maybe we've already done that, but it's really hard 610 00:30:58,400 --> 00:31:00,640 Speaker 1: to cut loose to some of that money, you know, 611 00:31:00,680 --> 00:31:04,040 Speaker 1: as it relates to charities. This is the best advice 612 00:31:04,240 --> 00:31:07,480 Speaker 1: I can give you. I think giving to charity is 613 00:31:07,520 --> 00:31:09,640 Speaker 1: a lot like anything else we do with our money. 614 00:31:09,760 --> 00:31:13,080 Speaker 1: We're going to tend to follow our passion in our heart, 615 00:31:13,200 --> 00:31:16,680 Speaker 1: whether that's taking a cruise or buying a new car, 616 00:31:16,960 --> 00:31:20,000 Speaker 1: or giving to some kind of charity that we've become 617 00:31:20,040 --> 00:31:24,000 Speaker 1: attached to. So the best advice I can give you 618 00:31:24,120 --> 00:31:27,520 Speaker 1: is from the New Testament, Second Corinthians ninety seven says 619 00:31:27,600 --> 00:31:30,120 Speaker 1: each of you should give what you have decided in 620 00:31:30,160 --> 00:31:34,920 Speaker 1: your heart to give, not reluctantly or under compulsion, for 621 00:31:35,040 --> 00:31:37,720 Speaker 1: God loves a cheerful giver. In other words, don't do 622 00:31:37,920 --> 00:31:42,160 Speaker 1: any giving under pressure. Make sure you have peace, and 623 00:31:42,200 --> 00:31:45,560 Speaker 1: I would say some excitement and passionate passion about it. 624 00:31:45,840 --> 00:31:47,760 Speaker 1: And then that's where you know, you know you and 625 00:31:47,800 --> 00:31:50,360 Speaker 1: your husband are heading in the right direction. You should 626 00:31:50,360 --> 00:31:53,400 Speaker 1: derive some joy from giving money to others, and I 627 00:31:53,440 --> 00:31:54,959 Speaker 1: hope that helps, all right. 628 00:31:55,680 --> 00:31:57,240 Speaker 2: I want to tackle on an extra bullet to that 629 00:31:57,280 --> 00:31:59,600 Speaker 2: because I just had a conversation yesterday that I think 630 00:32:00,160 --> 00:32:02,320 Speaker 2: along with this. So a lot of people are, of 631 00:32:02,360 --> 00:32:06,040 Speaker 2: course passionate about tithing, which is pretty easy to do. 632 00:32:06,160 --> 00:32:07,880 Speaker 2: You know, ten percent of my income is easy to 633 00:32:08,000 --> 00:32:10,320 Speaker 2: easy to calculate when I've got two w two checks. 634 00:32:10,640 --> 00:32:12,840 Speaker 2: But I think what happens is a lot of times 635 00:32:12,880 --> 00:32:15,719 Speaker 2: people will kind of write that number in stone and 636 00:32:15,760 --> 00:32:18,720 Speaker 2: say that it must be that dollar amount forever, or 637 00:32:18,760 --> 00:32:22,640 Speaker 2: we're somehow not fulfilling our obligations spiritually. But nowhere in 638 00:32:22,680 --> 00:32:24,600 Speaker 2: the Bible does it say you should give x percent 639 00:32:24,640 --> 00:32:27,960 Speaker 2: of your IRA distributions and x percent of your rental 640 00:32:27,960 --> 00:32:30,280 Speaker 2: real estate income, or when you take this much out 641 00:32:30,320 --> 00:32:32,600 Speaker 2: of savings, that chunk should always go. The Bible doesn't 642 00:32:32,680 --> 00:32:36,200 Speaker 2: quite get that specific. So just be conscious that it's 643 00:32:36,240 --> 00:32:39,840 Speaker 2: okay to reduce your If you are a tither, it's 644 00:32:39,880 --> 00:32:43,360 Speaker 2: okay to reduce your contributions because your income has lowered 645 00:32:43,480 --> 00:32:46,120 Speaker 2: because you retired. Congratulations. Maybe your income doesn't need to 646 00:32:46,120 --> 00:32:48,000 Speaker 2: be what it used to be, But we don't have 647 00:32:48,080 --> 00:32:50,000 Speaker 2: to marry ourselves to the number we gave in the 648 00:32:50,040 --> 00:32:53,000 Speaker 2: past just because it was the number. Have a reason, 649 00:32:53,080 --> 00:32:55,760 Speaker 2: like Bob just said, figure out mathematically what it is 650 00:32:55,800 --> 00:32:57,400 Speaker 2: you can afford, first of all, and then make sure 651 00:32:57,400 --> 00:32:59,160 Speaker 2: you're comfortable with it. And it does not have to 652 00:32:59,200 --> 00:33:01,320 Speaker 2: be what you get before you retired. A lot of 653 00:33:01,360 --> 00:33:02,640 Speaker 2: people get get screwed up by that. 654 00:33:03,360 --> 00:33:06,240 Speaker 1: Yep, good stuff, all right, Greg and Anderson Brian says, 655 00:33:06,280 --> 00:33:09,680 Speaker 1: we're close to retirement, but our life feels busier than ever. 656 00:33:10,240 --> 00:33:14,920 Speaker 1: Our parents are aging, grandkids are growing, careers are winding down. 657 00:33:15,040 --> 00:33:19,200 Speaker 1: How do you plan when everything's changing at once? Boy, 658 00:33:19,240 --> 00:33:21,280 Speaker 1: I can relate to some of this question, Brian. 659 00:33:24,920 --> 00:33:28,120 Speaker 2: So we all spent time at one point as a 660 00:33:28,160 --> 00:33:30,440 Speaker 2: young person trying to build wealth and just trying to 661 00:33:30,440 --> 00:33:33,080 Speaker 2: get started an adult life and so forth. And the 662 00:33:33,640 --> 00:33:35,360 Speaker 2: so I can tell that Greg did a good job 663 00:33:35,400 --> 00:33:37,640 Speaker 2: of that, because all of a sudden he's getting hit 664 00:33:37,640 --> 00:33:39,680 Speaker 2: in the face with all of these questions. And these 665 00:33:39,720 --> 00:33:41,800 Speaker 2: are just that all the normal things that everybody goes to. 666 00:33:41,840 --> 00:33:43,640 Speaker 2: It does all happen at once, you know. And I'm 667 00:33:43,640 --> 00:33:45,440 Speaker 2: not going to say life is quiet in the first 668 00:33:45,480 --> 00:33:47,560 Speaker 2: several decades. That is not the case at all. However, 669 00:33:47,600 --> 00:33:51,160 Speaker 2: it's usually financially relatively quiet. The answers are fairly simple. 670 00:33:51,320 --> 00:33:53,520 Speaker 2: I always tell young people you got three things to do. 671 00:33:53,960 --> 00:33:59,200 Speaker 2: Save your money aggressively, invest aggressively, don't panic when the 672 00:33:59,200 --> 00:34:01,240 Speaker 2: market wobbles, and don't make a mess of your credit. 673 00:34:01,240 --> 00:34:03,200 Speaker 2: If you do those three things for thirty years, you're 674 00:34:03,200 --> 00:34:06,040 Speaker 2: gonna have all these questions that Greg has. So congratulations, Greg, 675 00:34:06,040 --> 00:34:08,839 Speaker 2: you got what you wanted. The answer is, first of all, 676 00:34:08,880 --> 00:34:11,560 Speaker 2: exhale always, and remember you're not the only one going 677 00:34:11,560 --> 00:34:13,640 Speaker 2: through this. There are plenty of people around you who 678 00:34:13,680 --> 00:34:16,399 Speaker 2: are who are seeing all these things. The good thing 679 00:34:16,520 --> 00:34:18,880 Speaker 2: is when we get ourselves hung up over the math, 680 00:34:18,960 --> 00:34:21,760 Speaker 2: the financial math behind all of this. It's just math. 681 00:34:21,920 --> 00:34:23,200 Speaker 2: You can get it all down on a piece of 682 00:34:23,239 --> 00:34:25,520 Speaker 2: paper or a spreadsheet or a financial planning tool, and 683 00:34:25,560 --> 00:34:27,680 Speaker 2: then you can make that question go away from a 684 00:34:27,719 --> 00:34:30,000 Speaker 2: standpoint of you've kind of got it down in concrete. 685 00:34:30,040 --> 00:34:31,919 Speaker 2: You've got it somewhere you can play with it. Then 686 00:34:31,960 --> 00:34:34,560 Speaker 2: you can focus on all the things you highlighted. Greg 687 00:34:34,760 --> 00:34:37,200 Speaker 2: are more emotional in nature. So once you have the 688 00:34:37,200 --> 00:34:39,279 Speaker 2: math out of the way and you understand it, you 689 00:34:39,280 --> 00:34:41,960 Speaker 2: have a tool that you can flex as things change, 690 00:34:42,040 --> 00:34:44,560 Speaker 2: then you can focus on those more difficult psychological and 691 00:34:44,600 --> 00:34:47,160 Speaker 2: emotional questions that you just highlighted. But again, first thing, 692 00:34:47,200 --> 00:34:50,240 Speaker 2: Greg Exhale. Coming up next. 693 00:34:50,360 --> 00:34:55,160 Speaker 1: Brian has his bottom line on how to avoid analysis paralysis. 694 00:34:55,520 --> 00:34:56,680 Speaker 2: You're listening to Simply Money? 695 00:34:56,880 --> 00:34:59,240 Speaker 1: Is that about all Worth Financial on fifty five KRC 696 00:34:59,680 --> 00:35:04,960 Speaker 1: the talk station. You're listening to Simple Money because I 697 00:35:05,160 --> 00:35:08,560 Speaker 1: by all Worth Financial. I'm Bob sponseller along with Brian James. 698 00:35:08,760 --> 00:35:12,200 Speaker 1: Brian has some words of wisdom for us tonight about 699 00:35:12,239 --> 00:35:15,160 Speaker 1: how to avoid analysis paralysis. 700 00:35:15,719 --> 00:35:17,399 Speaker 2: Well, Bob, I thought of this the other day because 701 00:35:17,400 --> 00:35:19,799 Speaker 2: I had a few conversations or conversations with clients. And 702 00:35:19,840 --> 00:35:22,320 Speaker 2: then you and I were talking on an earlier show 703 00:35:22,920 --> 00:35:25,560 Speaker 2: about the idea that the market is at a peak 704 00:35:25,600 --> 00:35:28,480 Speaker 2: and what does that mean, and we kind of highlighted 705 00:35:28,480 --> 00:35:30,080 Speaker 2: the fact that the market is usually at a peak, 706 00:35:30,120 --> 00:35:32,000 Speaker 2: so it doesn't really mean much of anything. Just means that, 707 00:35:32,280 --> 00:35:34,279 Speaker 2: you know, we've got more money than we've ever had, 708 00:35:34,320 --> 00:35:36,520 Speaker 2: but it doesn't necessarily change what you need to do. 709 00:35:36,800 --> 00:35:39,120 Speaker 2: So what happens, though, is a lot of times this 710 00:35:39,200 --> 00:35:41,120 Speaker 2: causes people to get that. You know, we've all heard 711 00:35:41,160 --> 00:35:45,040 Speaker 2: this phrase paralysis by analysis, in other words, overthinking, looking 712 00:35:45,080 --> 00:35:48,080 Speaker 2: for so many different options and researching everything to death 713 00:35:48,200 --> 00:35:51,080 Speaker 2: that I never bothered to do anything. So now tell 714 00:35:51,080 --> 00:35:53,240 Speaker 2: me this sounds like you. You ever spent hours comparing 715 00:35:53,280 --> 00:35:56,439 Speaker 2: credit cards or researching that perfect investment, only to wind 716 00:35:56,520 --> 00:35:57,920 Speaker 2: up going, you know what, I don't see the answer. 717 00:35:57,920 --> 00:36:00,000 Speaker 2: I'm going to look at this again tomorrow, and tomorrow, 718 00:36:00,400 --> 00:36:03,000 Speaker 2: same thing happens, and eventually you just quit looking at it. 719 00:36:03,239 --> 00:36:04,839 Speaker 2: So I have a couple of clients, Bob that went 720 00:36:04,880 --> 00:36:07,960 Speaker 2: to cash in two thousand and eight, panicked, unfortunately, and 721 00:36:08,440 --> 00:36:11,360 Speaker 2: sat that way until twenty twenty one. This was not 722 00:36:11,480 --> 00:36:14,000 Speaker 2: with us. They didn't They came around came to our 723 00:36:14,680 --> 00:36:19,319 Speaker 2: doorstep well into that whole situation, but the whole, the 724 00:36:19,520 --> 00:36:22,920 Speaker 2: entire time, they spent ten fifteen years looking for the 725 00:36:22,960 --> 00:36:25,160 Speaker 2: perfect investment that would never take them through a two 726 00:36:25,200 --> 00:36:27,000 Speaker 2: thousand and eight type thing again, and that is just 727 00:36:27,200 --> 00:36:30,640 Speaker 2: not a possibility. But they set themselves back. And so 728 00:36:30,719 --> 00:36:35,080 Speaker 2: what happens is, obviously this is a psychological issue happening 729 00:36:35,080 --> 00:36:37,360 Speaker 2: here called loss a version. I don't want to lose money. 730 00:36:37,360 --> 00:36:40,239 Speaker 2: That's a bad thing. I can't That is a negative permanently, 731 00:36:40,239 --> 00:36:42,520 Speaker 2: it's a mistake. If something goes wrong, we've made a mistake, 732 00:36:43,080 --> 00:36:45,640 Speaker 2: not the you know, not realizing that that's just life. 733 00:36:45,680 --> 00:36:48,360 Speaker 2: Sometimes it rains, and sometimes we make picnic plans on 734 00:36:48,440 --> 00:36:50,560 Speaker 2: the wrong day. It just happens. But it doesn't mean 735 00:36:50,560 --> 00:36:52,360 Speaker 2: there isn't going to be another day out there. So 736 00:36:52,440 --> 00:36:54,720 Speaker 2: the research shows that a lot of Americans can delay 737 00:36:54,719 --> 00:36:57,680 Speaker 2: these financial decisions for months or even years because they 738 00:36:57,680 --> 00:37:00,719 Speaker 2: feel overwhelmed. And in twenty twenty five, with going up 739 00:37:00,719 --> 00:37:03,000 Speaker 2: and lots of scary headlines and so forth, and the 740 00:37:03,000 --> 00:37:06,080 Speaker 2: market being on in year three of a really really 741 00:37:06,160 --> 00:37:09,200 Speaker 2: strong bull market, that gets a lot of people concerned 742 00:37:09,239 --> 00:37:10,719 Speaker 2: about what do I do? What do I do? Today. 743 00:37:10,800 --> 00:37:12,719 Speaker 2: The answer a lot oftentimes is nothing. Do you ever 744 00:37:12,760 --> 00:37:14,719 Speaker 2: see this kind of thing in your daily routine? 745 00:37:15,160 --> 00:37:18,160 Speaker 1: Yeah? And I think this, you know, speaks to the 746 00:37:18,320 --> 00:37:22,280 Speaker 1: value of having a good fiduciary financial advisor. Forget about 747 00:37:22,400 --> 00:37:25,480 Speaker 1: products and strategies and all that a lot of times. 748 00:37:25,480 --> 00:37:27,640 Speaker 1: And Brian, we joke around a lot about this on 749 00:37:27,719 --> 00:37:31,680 Speaker 1: the show, but it is vitally important to study history 750 00:37:31,800 --> 00:37:36,840 Speaker 1: and study data and actually have some good historical data 751 00:37:36,880 --> 00:37:41,120 Speaker 1: to go through that is constructed in such a way 752 00:37:41,160 --> 00:37:44,120 Speaker 1: where people can understand it. And that's where I know 753 00:37:44,239 --> 00:37:47,080 Speaker 1: you do a great job of this in educating your clients. 754 00:37:47,680 --> 00:37:48,960 Speaker 2: I think once people. 755 00:37:48,680 --> 00:37:52,000 Speaker 1: Get armed with good information and a lot of the 756 00:37:52,000 --> 00:37:54,719 Speaker 1: best information out there, you never hear about in the 757 00:37:54,719 --> 00:37:57,239 Speaker 1: financial media because they're just talking about what's going to 758 00:37:57,320 --> 00:37:59,360 Speaker 1: go up or down over the next you know, thirty 759 00:37:59,400 --> 00:38:02,560 Speaker 1: six hours. So to have a good advisor, step back 760 00:38:02,640 --> 00:38:05,320 Speaker 1: and look at some good historical data. I have found 761 00:38:05,800 --> 00:38:09,200 Speaker 1: armed with data, people can get a little release here 762 00:38:09,320 --> 00:38:12,399 Speaker 1: and be willing to get off that analysis paralysis train. 763 00:38:13,239 --> 00:38:16,080 Speaker 2: Yeah. So three quick steps here. Set a deadline, give 764 00:38:16,120 --> 00:38:17,960 Speaker 2: yourself a week, a month, or whatever. But set that 765 00:38:18,000 --> 00:38:20,680 Speaker 2: hard deadline. Narrow your options down to two or three 766 00:38:21,000 --> 00:38:23,680 Speaker 2: and embrace imperfection. You're not going to nail it. You'll 767 00:38:23,680 --> 00:38:26,840 Speaker 2: never have perfect information like Bob just said, but know 768 00:38:27,040 --> 00:38:29,040 Speaker 2: that you will have made the decision with the most 769 00:38:29,040 --> 00:38:32,479 Speaker 2: information you can and therefore the most educated manner. Thanks 770 00:38:32,560 --> 00:38:33,279 Speaker 2: for listening tonight. 771 00:38:33,320 --> 00:38:35,359 Speaker 1: You've been listening to Simply Money, presented by all Worth 772 00:38:35,360 --> 00:38:38,360 Speaker 1: Financial on fifty five KRC, the talk station