1 00:00:00,040 --> 00:00:01,040 Speaker 1: I want to know what's happening. 2 00:00:01,160 --> 00:00:02,880 Speaker 2: I know what's going on around town. 3 00:00:02,800 --> 00:00:03,640 Speaker 1: Around the country. 4 00:00:03,880 --> 00:00:05,840 Speaker 2: I don't even know. I need to know the weather 5 00:00:05,920 --> 00:00:09,280 Speaker 2: in traffic. Listen and you'll know. On fifty five KRZ 6 00:00:09,880 --> 00:00:16,040 Speaker 2: the talkstation Shabato sick here if if you have kr 7 00:00:16,079 --> 00:00:20,239 Speaker 2: CEED talk station, it's Monday. It's that time. All our financials. 8 00:00:20,400 --> 00:00:23,599 Speaker 2: Brian James giving us another edition of Money Monday, and 9 00:00:23,720 --> 00:00:26,400 Speaker 2: of course it's appointment listening for that secret group of 10 00:00:26,440 --> 00:00:28,440 Speaker 2: women out there that Brian and I learned about. You 11 00:00:28,480 --> 00:00:31,800 Speaker 2: tune in regularly just to cling to Brian James words 12 00:00:31,840 --> 00:00:35,600 Speaker 2: on investment strategies and today about Tariff's being up, the 13 00:00:35,640 --> 00:00:38,680 Speaker 2: interest on our national death Doge apparently didn't accomplish much, 14 00:00:38,720 --> 00:00:42,000 Speaker 2: Social Security and the topic we've been waiting for credit 15 00:00:42,120 --> 00:00:44,280 Speaker 2: unions versus banks. A lot to pile in for a 16 00:00:44,280 --> 00:00:47,479 Speaker 2: few segments. Brian James, Welcome back and Happy Monday in 17 00:00:47,520 --> 00:00:48,920 Speaker 2: spite of the Bengals loss. 18 00:00:48,880 --> 00:00:52,600 Speaker 1: Happy Monday, and go Mariners, including all the former Reds 19 00:00:52,640 --> 00:00:55,000 Speaker 1: who are still playing. That's all we have to cling 20 00:00:55,040 --> 00:00:57,560 Speaker 1: to at this point. Hey, you got something there, Brian, 21 00:00:58,080 --> 00:01:02,800 Speaker 1: Go Luis Castillo and a Heniosuarez and handful of other ones, right, 22 00:01:02,840 --> 00:01:05,000 Speaker 1: it's something that's better than nothing. Will hang on to that. 23 00:01:05,240 --> 00:01:07,920 Speaker 2: It is something and something that is tariffs I know 24 00:01:08,400 --> 00:01:11,800 Speaker 2: so far, you know, I mean draw your conclusions whether 25 00:01:11,959 --> 00:01:15,319 Speaker 2: we have been collectively scathed in our economy. But apparently 26 00:01:15,319 --> 00:01:16,960 Speaker 2: at some point they say they were going to catch 27 00:01:17,040 --> 00:01:19,080 Speaker 2: up to us, and it looks like they may be 28 00:01:19,200 --> 00:01:22,080 Speaker 2: catching up. And I know China has just put some huge, 29 00:01:22,280 --> 00:01:26,280 Speaker 2: huge prohibitions on the trading of the rare earth minerals 30 00:01:26,319 --> 00:01:29,040 Speaker 2: that we rely on them almost exclusively for. So what's 31 00:01:29,040 --> 00:01:30,559 Speaker 2: going on with the tariff ran. 32 00:01:31,080 --> 00:01:34,280 Speaker 1: Well, the tariffs have had their impact, so interestingly, our 33 00:01:34,319 --> 00:01:37,399 Speaker 1: deficit is basically flat at one point eight trillion. Now 34 00:01:37,400 --> 00:01:41,399 Speaker 1: that would be a fantastic headline in any other environment. However, 35 00:01:41,440 --> 00:01:44,640 Speaker 1: what's happening is it's just the surge from the tariffs. 36 00:01:44,640 --> 00:01:47,319 Speaker 1: So the cash that's coming in from that that's keeping 37 00:01:47,319 --> 00:01:51,880 Speaker 1: the deficit from running up. So on one hand, anytime 38 00:01:51,920 --> 00:01:53,840 Speaker 1: the deficit doesn't increase, that would be I can't remember 39 00:01:53,840 --> 00:01:56,400 Speaker 1: the last time that was a headline. But all it 40 00:01:56,480 --> 00:01:58,680 Speaker 1: is is the cash that's coming from these tariffs, which 41 00:01:58,720 --> 00:02:02,720 Speaker 1: is probably somewhat temporary as the market continues to settle 42 00:02:02,760 --> 00:02:05,640 Speaker 1: itself out as countries decide whether they're willing to continue 43 00:02:05,720 --> 00:02:08,040 Speaker 1: or if they fight back, or if they find different 44 00:02:08,040 --> 00:02:12,000 Speaker 1: markets entirely to sell to. So customs duties had almost 45 00:02:12,000 --> 00:02:15,440 Speaker 1: two hundred billion dollars, that's more than double last year, 46 00:02:15,480 --> 00:02:18,799 Speaker 1: and it's still only three point seven percent of federal revenue. 47 00:02:18,880 --> 00:02:21,880 Speaker 1: So Trump had the President Trump had this big goal 48 00:02:21,919 --> 00:02:26,120 Speaker 1: of We're going to reduce income taxes, reliance on income taxes, 49 00:02:26,120 --> 00:02:29,680 Speaker 1: and increase reliance on external taxes, meaning these tariffs. That's 50 00:02:29,720 --> 00:02:32,080 Speaker 1: how we're going to run the country. So these tariffs, 51 00:02:32,120 --> 00:02:35,280 Speaker 1: even now at two hundred billion from these duties, is 52 00:02:35,320 --> 00:02:38,520 Speaker 1: still only three point seven percent of federal revenue. Individual 53 00:02:38,560 --> 00:02:41,160 Speaker 1: income taxes still make up fifty one percent of it. 54 00:02:41,200 --> 00:02:43,040 Speaker 1: So we got a long way to go. If these 55 00:02:43,080 --> 00:02:45,880 Speaker 1: tariffs are going to truly remove our income taxes, which 56 00:02:46,200 --> 00:02:47,799 Speaker 1: I have bad news. They are not. 57 00:02:48,440 --> 00:02:52,840 Speaker 2: Fair enough on that. I guess tariffs, by all arguments, 58 00:02:53,440 --> 00:02:56,200 Speaker 2: can raise the price of goods here in the United States, 59 00:02:56,560 --> 00:02:59,880 Speaker 2: So one could argue if your income tax does stay down, 60 00:03:00,560 --> 00:03:02,919 Speaker 2: the money still has to be collected some way. This way, 61 00:03:02,919 --> 00:03:05,400 Speaker 2: at least, anybody who buys something is kind of sharing 62 00:03:05,400 --> 00:03:08,040 Speaker 2: in the responsibility. It's kind of like a increase in 63 00:03:08,120 --> 00:03:10,640 Speaker 2: sales tax that deal with fewer tax dollars coming in 64 00:03:10,639 --> 00:03:11,560 Speaker 2: by way of income tax. 65 00:03:11,680 --> 00:03:15,120 Speaker 1: It's quite literally that. I mean, there's nothing that says 66 00:03:15,120 --> 00:03:18,920 Speaker 1: that any company or country that is selling into the 67 00:03:19,000 --> 00:03:21,520 Speaker 1: United States has to eat these tariffs. There are no 68 00:03:21,639 --> 00:03:24,080 Speaker 1: rules that say that they must keep their prices the 69 00:03:24,120 --> 00:03:27,000 Speaker 1: same and just eat the tariffs. There's really no way 70 00:03:27,040 --> 00:03:28,679 Speaker 1: to put that in place. They can simply decide to 71 00:03:28,720 --> 00:03:31,120 Speaker 1: walk away from the market, or they can raise their prices. 72 00:03:31,160 --> 00:03:33,520 Speaker 1: It's really no different than you know, if you're renting 73 00:03:33,520 --> 00:03:37,320 Speaker 1: an apartment and you feel like the landlord is going 74 00:03:37,360 --> 00:03:40,440 Speaker 1: to bear the brunt of the property tax increases, that 75 00:03:40,600 --> 00:03:42,600 Speaker 1: is not the case. They're simply going to raise the rent. 76 00:03:42,800 --> 00:03:45,480 Speaker 1: The renter is the one who ultimately pays everything. That's 77 00:03:45,520 --> 00:03:47,760 Speaker 1: why they call us consumers. We're at the bottom of 78 00:03:47,800 --> 00:03:49,560 Speaker 1: the at the bottom of the chain, and we are 79 00:03:49,600 --> 00:03:51,960 Speaker 1: the ones who consume all the goods and services that 80 00:03:52,000 --> 00:03:54,320 Speaker 1: are out there, and that means we have to eat 81 00:03:54,360 --> 00:03:56,320 Speaker 1: whatever price is. The only way you can avoid these 82 00:03:56,360 --> 00:03:59,000 Speaker 1: price increases is to truly change your lifestyle and not 83 00:03:59,160 --> 00:04:01,400 Speaker 1: need these things any and that's simply not an option 84 00:04:01,480 --> 00:04:03,040 Speaker 1: for most of the stuff we have to deal with now. 85 00:04:03,120 --> 00:04:04,680 Speaker 2: For most of the stuff, there are a lot of 86 00:04:04,680 --> 00:04:07,720 Speaker 2: things on I think our collective budget margins that if 87 00:04:07,720 --> 00:04:09,840 Speaker 2: we really gave it long hard thought, we know we 88 00:04:09,880 --> 00:04:12,560 Speaker 2: could do without them. So that's up to an individual 89 00:04:12,600 --> 00:04:14,720 Speaker 2: families choices, and people are going to be forced to 90 00:04:14,720 --> 00:04:18,200 Speaker 2: make those kind of choices. Interest revealing that the interest 91 00:04:18,279 --> 00:04:21,360 Speaker 2: rate on our debt is now over one trillion dollars, 92 00:04:21,400 --> 00:04:24,320 Speaker 2: meaning that is I guess more than even defense spending 93 00:04:24,440 --> 00:04:27,479 Speaker 2: usually coming into like number one. But that's because we 94 00:04:27,480 --> 00:04:29,560 Speaker 2: have a spending problem in government. I know Donald Trump's 95 00:04:29,600 --> 00:04:33,120 Speaker 2: done some took some steps with the OMB on Friday 96 00:04:33,120 --> 00:04:35,560 Speaker 2: to start firing people. But when they fire people that 97 00:04:36,839 --> 00:04:39,080 Speaker 2: whether it impacts you and me in our day to 98 00:04:39,120 --> 00:04:41,239 Speaker 2: day lives, it's certainly not going to be a sizable 99 00:04:41,320 --> 00:04:43,919 Speaker 2: enough chunk of government cuts to actually accomplish something. So 100 00:04:44,000 --> 00:04:47,120 Speaker 2: let's talk about that. But also, we had huge hopes 101 00:04:47,160 --> 00:04:50,320 Speaker 2: for the Doge Department and that apparently has kind of 102 00:04:50,360 --> 00:04:52,560 Speaker 2: fizzled out. So where are we with this debt and 103 00:04:53,000 --> 00:04:55,919 Speaker 2: of course the DOGE cuts, So yeah, the. 104 00:04:56,120 --> 00:04:59,880 Speaker 1: Big concern there with the size of debt, So debt 105 00:04:59,920 --> 00:05:02,320 Speaker 1: is it's just like anything else you have a mortgage 106 00:05:02,320 --> 00:05:03,920 Speaker 1: out there, you're a bunch of credit card debts, then 107 00:05:03,960 --> 00:05:07,480 Speaker 1: you are impacted directly by interest rates. And now that 108 00:05:07,480 --> 00:05:10,960 Speaker 1: we're literally writing checks for a trillion dollars as a country, 109 00:05:11,400 --> 00:05:13,920 Speaker 1: that's just for the interest. Remember some if we're writing 110 00:05:13,920 --> 00:05:16,080 Speaker 1: a check for a trillion dollars, somebody might go, oh, great, 111 00:05:16,080 --> 00:05:18,520 Speaker 1: we're paying down a principle. No we're not. We're simply 112 00:05:18,560 --> 00:05:21,320 Speaker 1: maintaining what we already have. We are treading water. So 113 00:05:21,720 --> 00:05:24,320 Speaker 1: that net interest of a trillion dollars is now bigger 114 00:05:24,360 --> 00:05:28,680 Speaker 1: than medicare or defense. Based on some calculations, roughly about 115 00:05:28,720 --> 00:05:31,200 Speaker 1: a dollar of every five dollars in revenue. And again 116 00:05:31,360 --> 00:05:33,479 Speaker 1: remember half of that comes from our own income taxes. 117 00:05:33,600 --> 00:05:36,000 Speaker 1: A dollar out of every five dollars goes to these 118 00:05:36,040 --> 00:05:38,840 Speaker 1: interest payments. This is coming from the higher rates and 119 00:05:38,880 --> 00:05:40,760 Speaker 1: the fact that we have just more debt than we've 120 00:05:40,760 --> 00:05:44,320 Speaker 1: ever had before. Of course, so the issue here, the 121 00:05:44,400 --> 00:05:46,800 Speaker 1: concern is that we were likely going to head into 122 00:05:46,839 --> 00:05:50,679 Speaker 1: a higher for longer type of a situation with regard 123 00:05:50,720 --> 00:05:53,159 Speaker 1: to interest rates staying where they are. Remember, we're not 124 00:05:53,200 --> 00:05:55,760 Speaker 1: always only talking about the Federal Reserve and what it 125 00:05:55,800 --> 00:05:58,640 Speaker 1: wants to do with interest rates. We're often talking about 126 00:05:58,680 --> 00:06:01,039 Speaker 1: what the market. The market has an impact on rates too. 127 00:06:01,080 --> 00:06:05,039 Speaker 1: Whatever it's sensitive to. Whatever the market thinks of the 128 00:06:05,120 --> 00:06:07,320 Speaker 1: credit quality of the United States, can it continue to 129 00:06:07,360 --> 00:06:09,719 Speaker 1: pay its debts and so forth, that will also have 130 00:06:09,760 --> 00:06:13,240 Speaker 1: an impact on interest rates. That means Washington is going 131 00:06:13,320 --> 00:06:15,720 Speaker 1: to be super sensitive to interest rate moves, even if 132 00:06:15,720 --> 00:06:19,280 Speaker 1: the Fed makes gradual cuts, Brian, the rolling over debt 133 00:06:19,360 --> 00:06:21,560 Speaker 1: that's still out there is going to keep these average 134 00:06:21,560 --> 00:06:24,080 Speaker 1: interest costs elevated. And that means we need to make 135 00:06:24,120 --> 00:06:26,880 Speaker 1: some cautious mortgage and refi assumptions, and we need to 136 00:06:26,920 --> 00:06:29,279 Speaker 1: be stress testing our budgets for these higher rates. For 137 00:06:29,320 --> 00:06:31,120 Speaker 1: those of you what that means out there, For those 138 00:06:31,160 --> 00:06:34,480 Speaker 1: of you perhaps on an adjustable rate mortgage, you need 139 00:06:34,520 --> 00:06:36,240 Speaker 1: to take a look at what that might be if 140 00:06:36,240 --> 00:06:38,360 Speaker 1: you did it five years ago at a really low rate. Well, 141 00:06:38,360 --> 00:06:40,159 Speaker 1: that's going to be sneaking up on you very soon. 142 00:06:40,760 --> 00:06:42,600 Speaker 1: You need to make sure you can handle whatever the 143 00:06:43,200 --> 00:06:45,360 Speaker 1: increased payment is going to be when that adjustable rate 144 00:06:45,400 --> 00:06:46,240 Speaker 1: mortgage adjusts. 145 00:06:46,360 --> 00:06:48,520 Speaker 2: Well, doesn't the interest rate that repair, I mean, doesn't 146 00:06:48,560 --> 00:06:51,280 Speaker 2: the debt interest which we have to pay more than 147 00:06:51,320 --> 00:06:54,880 Speaker 2: a trillion year, and that keeps growing. Doesn't that necessarily 148 00:06:54,920 --> 00:06:58,159 Speaker 2: have a restrictive force on the growth of government. I mean, 149 00:06:58,200 --> 00:07:00,600 Speaker 2: if they're not bringing in any additional tax, you run 150 00:07:00,600 --> 00:07:02,920 Speaker 2: the risk of digging us further into a deficit hole 151 00:07:02,920 --> 00:07:05,880 Speaker 2: which increases that trillion dollars to something north of it. 152 00:07:06,320 --> 00:07:08,560 Speaker 2: Or you have to say, listen, we got all this 153 00:07:08,680 --> 00:07:10,680 Speaker 2: debt service we've got to pay. We no longer can 154 00:07:10,760 --> 00:07:13,240 Speaker 2: afford to fill in the blank. Maybe we need to 155 00:07:13,240 --> 00:07:15,360 Speaker 2: reduce the size of that department. Maybe we just say 156 00:07:15,400 --> 00:07:17,280 Speaker 2: no to something new by way of you know, oh, 157 00:07:17,280 --> 00:07:20,080 Speaker 2: I don't know, expanding health care for illegal immigrants or something. 158 00:07:20,360 --> 00:07:21,480 Speaker 2: But something's got to give. 159 00:07:21,520 --> 00:07:25,080 Speaker 1: Brian, Yeah, that's that's true for any household as well 160 00:07:25,120 --> 00:07:27,280 Speaker 1: as it's true for the for our country as a whole. 161 00:07:27,600 --> 00:07:30,160 Speaker 1: And that's that's what DOGE was intended to do. Yeah, 162 00:07:30,160 --> 00:07:32,600 Speaker 1: that didn't really quite you know, the little segue into 163 00:07:32,640 --> 00:07:35,840 Speaker 1: that topic since you mentioned it. When DOZE was originally 164 00:07:35,840 --> 00:07:38,520 Speaker 1: set up, remember this is the Department of Governmental Efficiency 165 00:07:39,120 --> 00:07:41,800 Speaker 1: run by Elon Musk briefly that was going to come 166 00:07:41,800 --> 00:07:44,560 Speaker 1: in and just clean house and figure out exactly where 167 00:07:44,560 --> 00:07:46,200 Speaker 1: all the waste is and get rid of it all. 168 00:07:46,200 --> 00:07:49,520 Speaker 1: And they were going to achieve two trillion dollars in savings. 169 00:07:49,520 --> 00:07:52,000 Speaker 1: That was the brochure that we all read, but so 170 00:07:52,160 --> 00:07:53,920 Speaker 1: far that hasn't been the case. Not to mention, Elon 171 00:07:54,000 --> 00:07:56,040 Speaker 1: Musk stepped down a few months ago, and we really 172 00:07:56,080 --> 00:07:59,520 Speaker 1: haven't heard much ever since. So total spending excluding interests 173 00:07:59,560 --> 00:08:02,040 Speaker 1: rose about two hundred and twenty billion dollars, or four 174 00:08:02,080 --> 00:08:04,880 Speaker 1: percent for that entire year. That would have been bigger 175 00:08:05,000 --> 00:08:09,040 Speaker 1: except for in September twenty five when the Trump administration 176 00:08:09,120 --> 00:08:12,680 Speaker 1: put in a non cash spending reduction based on modifications 177 00:08:12,680 --> 00:08:14,480 Speaker 1: to student loans. That knocked it down a little bit. 178 00:08:14,680 --> 00:08:15,360 Speaker 2: But other than. 179 00:08:15,240 --> 00:08:18,200 Speaker 1: Student loans, the only the only major categories where the 180 00:08:18,200 --> 00:08:22,400 Speaker 1: Congressional Budget Office said spending actually declined was the FDIC, which, 181 00:08:22,400 --> 00:08:24,120 Speaker 1: if you think about this, all that means is we 182 00:08:24,160 --> 00:08:27,640 Speaker 1: didn't have scary headlines about banks failure, which is that's 183 00:08:27,640 --> 00:08:29,080 Speaker 1: a good thing. But we can't count it as a 184 00:08:29,160 --> 00:08:32,480 Speaker 1: victory small Business administration because we had a similar situation 185 00:08:32,520 --> 00:08:34,280 Speaker 1: where we didn't have to lay out the kind of 186 00:08:34,320 --> 00:08:37,240 Speaker 1: money that we normally do for disaster related loans that 187 00:08:37,240 --> 00:08:40,080 Speaker 1: do come out of the Small Business Administration. So so 188 00:08:40,240 --> 00:08:42,360 Speaker 1: far we can't really say that DOJ has had all 189 00:08:42,400 --> 00:08:45,200 Speaker 1: that much of an impact despite the blusters coming out 190 00:08:45,240 --> 00:08:45,840 Speaker 1: of that department. 191 00:08:46,200 --> 00:08:48,719 Speaker 2: Yeah, I really had some hope for that department up right. 192 00:08:48,880 --> 00:08:51,240 Speaker 1: It made sense, right, didn't it. It sounds like something 193 00:08:51,440 --> 00:08:52,680 Speaker 1: responsible countries do. 194 00:08:52,880 --> 00:08:55,720 Speaker 2: It still does. I guess the question mark is why 195 00:08:56,280 --> 00:08:59,120 Speaker 2: isn't it accomplishing what we had expected? It just seems 196 00:08:59,160 --> 00:08:59,880 Speaker 2: so strange. 197 00:09:00,440 --> 00:09:02,760 Speaker 1: But I'll give you my opinion, and I think my 198 00:09:02,880 --> 00:09:05,880 Speaker 1: opinion is because anything that's truly going to fix anything 199 00:09:06,200 --> 00:09:09,720 Speaker 1: involves necessarily someone telling us as a society that we 200 00:09:09,880 --> 00:09:13,200 Speaker 1: must sacrifice. I don't think that our current political leadership 201 00:09:13,240 --> 00:09:15,920 Speaker 1: believes that we have that in us, and I definitely 202 00:09:15,960 --> 00:09:18,280 Speaker 1: don't believe that anybody who is in that position to 203 00:09:18,320 --> 00:09:20,600 Speaker 1: make those types of changes thinks that they can win 204 00:09:20,679 --> 00:09:22,400 Speaker 1: a reelection the next time around. 205 00:09:22,679 --> 00:09:27,160 Speaker 2: Social Security, Medicare, Medicaid, the third rails of politics will 206 00:09:27,160 --> 00:09:29,600 Speaker 2: continue with Brian James fro while Worth Financial. We'll talk 207 00:09:29,600 --> 00:09:31,839 Speaker 2: about an update on social is security, speaking of which 208 00:09:32,040 --> 00:09:35,200 Speaker 2: as well as credit unions versus bank topic by demand 209 00:09:35,320 --> 00:09:38,679 Speaker 2: more with Brian James. After I mentioned Cullen Electric family 210 00:09:38,679 --> 00:09:41,560 Speaker 2: in and operated Colin Electric Andrew Cullen is outstanding team 211 00:09:41,559 --> 00:09:43,640 Speaker 2: of electricians. They do great work for you. They have 212 00:09:43,679 --> 00:09:46,640 Speaker 2: for me over the years, many many, many projects, and 213 00:09:46,679 --> 00:09:48,600 Speaker 2: of course I got a tenure wiring warranty for what 214 00:09:48,640 --> 00:09:50,520 Speaker 2: they did for me, so will you. You'll find the 215 00:09:50,520 --> 00:09:53,240 Speaker 2: customer service to be superior and the price is always right. 216 00:09:53,280 --> 00:09:56,320 Speaker 2: So big projects, small projects, anything in between. If it 217 00:09:56,360 --> 00:10:00,440 Speaker 2: comes to residential electric projects, call Cullen to do that. 218 00:10:00,480 --> 00:10:02,720 Speaker 2: It's five one three two two seven four one one 219 00:10:02,840 --> 00:10:05,240 Speaker 2: two five one three two two seven four one one 220 00:10:05,280 --> 00:10:08,040 Speaker 2: two or online go to Cullen c U l E 221 00:10:08,120 --> 00:10:15,880 Speaker 2: and Cullenelectriccincinnati dot com. Fifty five krc it's aight eighteen 222 00:10:15,920 --> 00:10:18,720 Speaker 2: here fifty five KRCD talk station doing that money. Monday 223 00:10:18,800 --> 00:10:22,560 Speaker 2: Fame with all of financials Brian James, all Right, I 224 00:10:22,600 --> 00:10:24,520 Speaker 2: mentioned one of the third rails of politics, something that 225 00:10:24,559 --> 00:10:26,760 Speaker 2: could probably stand to use some reform in the name 226 00:10:26,800 --> 00:10:29,280 Speaker 2: of saving our financial future here in the United States 227 00:10:29,320 --> 00:10:32,679 Speaker 2: of America, the third rail social Security. And people always 228 00:10:32,720 --> 00:10:34,840 Speaker 2: argue I paid into it, I paid in when I'm entitled. 229 00:10:34,840 --> 00:10:37,840 Speaker 2: I'm entitled. But the structure of social Security doesn't really 230 00:10:37,880 --> 00:10:40,760 Speaker 2: work out in the taxpayer's favor because people now live 231 00:10:40,880 --> 00:10:43,440 Speaker 2: a hell a lot longer than they used to. You 232 00:10:43,520 --> 00:10:46,480 Speaker 2: retire at say sixty two or sixty five. You're around 233 00:10:46,600 --> 00:10:49,439 Speaker 2: until like eighty five. Now, when its Social Security started, 234 00:10:49,640 --> 00:10:52,320 Speaker 2: most people didn't live past like late sixties, so you 235 00:10:52,360 --> 00:10:54,559 Speaker 2: were only on it for a few years. They're also 236 00:10:54,720 --> 00:10:57,800 Speaker 2: fifteen I think workers to every one person receiving it. 237 00:10:58,120 --> 00:11:01,040 Speaker 2: That number has dropped precipitously, So the money that's going 238 00:11:01,040 --> 00:11:02,920 Speaker 2: into the program is a lot less than it used to. 239 00:11:03,679 --> 00:11:06,080 Speaker 2: It sounds like it needs some sort of reform. Brian James. 240 00:11:06,120 --> 00:11:09,960 Speaker 2: Where are we on social Security? So where we. 241 00:11:09,840 --> 00:11:12,280 Speaker 1: Are on Social Security? There is a hole in the bucket. 242 00:11:12,280 --> 00:11:15,480 Speaker 1: Brian Thomas. The math doesn't quite math very well. And 243 00:11:15,800 --> 00:11:18,199 Speaker 1: this has everything to do with what you had mentioned. 244 00:11:18,520 --> 00:11:20,720 Speaker 1: Of course, with people living longer and so forth. It 245 00:11:20,800 --> 00:11:23,240 Speaker 1: used to be you'd live maybe three five years and 246 00:11:23,280 --> 00:11:25,880 Speaker 1: get Social Security payments. Now there's thirty years worth of that. 247 00:11:26,520 --> 00:11:29,520 Speaker 1: Along the way, we have added enhanced benefits for spouses, 248 00:11:29,559 --> 00:11:31,640 Speaker 1: which I don't think is a bad thing, because you 249 00:11:31,679 --> 00:11:34,880 Speaker 1: can't ice your spouse out or your ex spouse or whatever. 250 00:11:36,000 --> 00:11:39,120 Speaker 1: We have to have some kind of safety net for 251 00:11:39,160 --> 00:11:42,199 Speaker 1: those folks who maybe didn't have their own earnings record 252 00:11:42,200 --> 00:11:44,160 Speaker 1: because they were home raising kids and then a divorce happened, 253 00:11:44,160 --> 00:11:46,040 Speaker 1: all that kind of stuff, those kinds of things, as 254 00:11:46,040 --> 00:11:49,360 Speaker 1: well as the eight percent increase in delayed retirement credits, 255 00:11:49,400 --> 00:11:52,079 Speaker 1: which simply means if you don't file for it, you 256 00:11:52,160 --> 00:11:55,040 Speaker 1: get an eight percent increase. Before nineteen seventy seven, that 257 00:11:55,160 --> 00:11:59,320 Speaker 1: was one percent per year, and then in nineteen seventy 258 00:11:59,320 --> 00:12:02,200 Speaker 1: seven through nineteen three they basically locked in an eight 259 00:12:02,240 --> 00:12:05,000 Speaker 1: percent increase for anyone who was born in nineteen forty 260 00:12:05,040 --> 00:12:07,440 Speaker 1: three or later, which is essentially everybody who's thinking about 261 00:12:07,440 --> 00:12:10,160 Speaker 1: this right now. So basically, by two thousand and eight, 262 00:12:10,200 --> 00:12:13,559 Speaker 1: everybody reaching seventy aged seventy had access to that full 263 00:12:13,679 --> 00:12:17,040 Speaker 1: eight percent annual delayed retirement increase. Remember this is if 264 00:12:17,040 --> 00:12:19,400 Speaker 1: I'm sixty two and I choose not to file for it, 265 00:12:19,679 --> 00:12:21,840 Speaker 1: my payment's going to go up by a full eight percent. 266 00:12:21,880 --> 00:12:23,800 Speaker 1: That has nothing to do with inflation, nothing to do 267 00:12:23,840 --> 00:12:27,280 Speaker 1: with interest rates. It's just a codified, concrete, eight percent 268 00:12:27,360 --> 00:12:30,320 Speaker 1: mathematical increase. So those are the reasons that the math 269 00:12:30,360 --> 00:12:32,880 Speaker 1: don't math. But let's talk about where we are right now. 270 00:12:33,160 --> 00:12:35,800 Speaker 1: So we've had a we get every so often we 271 00:12:35,840 --> 00:12:38,720 Speaker 1: get a new trustees report, and earlier this year of 272 00:12:38,720 --> 00:12:41,920 Speaker 1: the twenty twenty five report showed that the full benefits 273 00:12:41,960 --> 00:12:44,400 Speaker 1: are projected to be payable only for about nine more 274 00:12:44,480 --> 00:12:47,679 Speaker 1: years without adjustments, trust funds expected to be depleted by 275 00:12:47,720 --> 00:12:50,440 Speaker 1: twenty thirty four. Now I want to unpack that because 276 00:12:50,480 --> 00:12:53,120 Speaker 1: somebody just heard me say that Social Security is going 277 00:12:53,160 --> 00:12:55,160 Speaker 1: away in twenty thirty four. It is not. 278 00:12:55,320 --> 00:12:57,480 Speaker 2: No, they didn't hear that. They weren't listening to the 279 00:12:57,520 --> 00:12:59,520 Speaker 2: words you use, Brian James. Exactly. 280 00:12:59,559 --> 00:13:03,280 Speaker 1: Words are important, aren't they, Brian Thomas. So what this means, though, 281 00:13:03,440 --> 00:13:06,240 Speaker 1: is the trust fund reserves. What that means is that 282 00:13:06,240 --> 00:13:08,640 Speaker 1: we're simply bringing in more than more than we're paying 283 00:13:08,640 --> 00:13:10,560 Speaker 1: out currently, and that situation is going to last for 284 00:13:10,600 --> 00:13:12,880 Speaker 1: nine more years. I will be sitting in this chair 285 00:13:13,520 --> 00:13:16,240 Speaker 1: in twenty thirty four, and my paycheck at that time 286 00:13:16,280 --> 00:13:18,400 Speaker 1: will have a FIKA entry on it, which is how 287 00:13:18,480 --> 00:13:22,160 Speaker 1: taxes are extracted from my paycheck and sent directly to beneficiaries. 288 00:13:22,360 --> 00:13:24,280 Speaker 1: The point of all that is that fight A taxes 289 00:13:24,360 --> 00:13:26,880 Speaker 1: right now are more than what is actually being paid 290 00:13:26,880 --> 00:13:29,600 Speaker 1: out to beneficiaries. But that amount that surplus goes down 291 00:13:29,600 --> 00:13:32,560 Speaker 1: every year. It's got nine years left, so is it 292 00:13:32,600 --> 00:13:35,520 Speaker 1: going to zero? No? But if they change nothing, then 293 00:13:35,559 --> 00:13:38,439 Speaker 1: the current estimate is that Social Security is incoming revenue 294 00:13:38,440 --> 00:13:41,000 Speaker 1: from those fight A taxes otherwise known as payroll taxes. 295 00:13:41,240 --> 00:13:43,520 Speaker 1: That's going to cover only about eighty one percent of 296 00:13:43,520 --> 00:13:47,360 Speaker 1: scheduled benefits. Meaning if you go to SSA dot gov 297 00:13:47,559 --> 00:13:51,280 Speaker 1: and set up your my Social Security profile, then you 298 00:13:51,320 --> 00:13:54,320 Speaker 1: should knock off, say twenty percent of whatever that report 299 00:13:54,360 --> 00:13:56,480 Speaker 1: tells you, if you want to adjust your plan. 300 00:13:56,480 --> 00:13:57,240 Speaker 2: I would do it both ways. 301 00:13:57,320 --> 00:13:59,360 Speaker 1: Run your plan with the original numbers and then run 302 00:13:59,400 --> 00:14:01,720 Speaker 1: it again with a twenty percent reduction in your Social 303 00:14:01,720 --> 00:14:04,040 Speaker 1: Security just so you can see what the impact might be. 304 00:14:04,280 --> 00:14:07,079 Speaker 2: Well, and a financial planner will do those number crunches 305 00:14:07,120 --> 00:14:09,040 Speaker 2: for you, right, I mean you can put any scenario 306 00:14:09,080 --> 00:14:11,760 Speaker 2: into your like thousand point you know what the future 307 00:14:11,800 --> 00:14:13,360 Speaker 2: might look like program? Correct? 308 00:14:13,480 --> 00:14:16,000 Speaker 1: Oh absolutely, this is just one topic. You know. We 309 00:14:16,080 --> 00:14:18,199 Speaker 1: might even rephrase this and just say, hey, look look 310 00:14:18,200 --> 00:14:20,040 Speaker 1: what if you spend twenty percent more than you think 311 00:14:20,080 --> 00:14:22,760 Speaker 1: you're spending. This is just the math part, the things 312 00:14:22,760 --> 00:14:25,400 Speaker 1: that the little stories and anecdotes that trigger the math 313 00:14:25,640 --> 00:14:27,600 Speaker 1: is what gets our attention. But the math is still 314 00:14:27,640 --> 00:14:28,080 Speaker 1: just math. 315 00:14:28,320 --> 00:14:30,480 Speaker 2: Well, and we've all been warned about this, that that 316 00:14:31,320 --> 00:14:34,040 Speaker 2: sheet you get annually from Social Security telling you what 317 00:14:34,080 --> 00:14:38,360 Speaker 2: your expected payment will be given when you retire, whether 318 00:14:38,400 --> 00:14:41,040 Speaker 2: it's sixty two, sixty five, or you hold off till later. 319 00:14:41,800 --> 00:14:43,560 Speaker 2: It always it says right there on the front. This 320 00:14:43,640 --> 00:14:45,640 Speaker 2: is not a guarantee you're going to get the money. 321 00:14:45,880 --> 00:14:48,400 Speaker 2: I mean, you know, hey, here's a flag. You might 322 00:14:48,440 --> 00:14:50,680 Speaker 2: not want to count on this because our elected officials 323 00:14:50,720 --> 00:14:52,760 Speaker 2: don't do anything to try to salvage the program. 324 00:14:52,920 --> 00:14:54,960 Speaker 1: That's right, So let's let's talk about that a little bit. 325 00:14:55,000 --> 00:14:58,600 Speaker 1: So it's it's not that we don't try to fix it. 326 00:14:58,600 --> 00:15:00,560 Speaker 1: It's that it's that we've just are not in a 327 00:15:00,600 --> 00:15:02,680 Speaker 1: political mood and I don't see it coming anytime soon 328 00:15:02,760 --> 00:15:05,680 Speaker 1: where we are willing to make the sacrifices that are necessary. 329 00:15:05,960 --> 00:15:09,280 Speaker 1: So we did this a study of just a few 330 00:15:09,280 --> 00:15:12,280 Speaker 1: weeks ago, and there have been one hundred and forty 331 00:15:12,320 --> 00:15:15,240 Speaker 1: three different attempts that have hit the floor of Congress 332 00:15:15,280 --> 00:15:18,320 Speaker 1: to hopefully fix this problem. But every last one of 333 00:15:18,360 --> 00:15:21,840 Speaker 1: them is some flavor of either reducing benefits on current 334 00:15:21,880 --> 00:15:25,040 Speaker 1: retirees or increasing taxes on workers. There's a million ways 335 00:15:25,040 --> 00:15:27,400 Speaker 1: you can do that, but that's all we're all we're 336 00:15:27,400 --> 00:15:29,480 Speaker 1: doing here. You have to trust adjust the inflows or 337 00:15:29,520 --> 00:15:31,880 Speaker 1: the outflows period, end of story. We are not at 338 00:15:31,920 --> 00:15:35,120 Speaker 1: a place where we're willing to allow either side to win. 339 00:15:35,200 --> 00:15:37,200 Speaker 1: It's very easy to shoot this stuff out of the sky. 340 00:15:37,520 --> 00:15:40,800 Speaker 1: Democrats come with, let's raise taxes on workers. Republicans say 341 00:15:40,840 --> 00:15:43,080 Speaker 1: you can't do that. These people work too hard. Republicans 342 00:15:43,160 --> 00:15:45,680 Speaker 1: come with, let's lower the benefits. And Democrats say, you 343 00:15:45,720 --> 00:15:47,720 Speaker 1: can't do that. These people work for these dollars. And 344 00:15:47,760 --> 00:15:50,880 Speaker 1: it gets shot down instantaneously. That's the cycle that we're in, 345 00:15:51,040 --> 00:15:52,360 Speaker 1: and I'm going to predict we're going to be in 346 00:15:52,440 --> 00:15:54,520 Speaker 1: it for most of the next decade, until our backs 347 00:15:54,520 --> 00:15:56,920 Speaker 1: are against the wall, Bryan, and we have no choice 348 00:15:56,960 --> 00:15:59,600 Speaker 1: except to elect somebody who will actually speak to us 349 00:15:59,640 --> 00:16:01,040 Speaker 1: like adult. We're not ready to do that. 350 00:16:01,200 --> 00:16:03,280 Speaker 2: We're not ready to do that. Eight twenty four. Right now, 351 00:16:03,360 --> 00:16:05,200 Speaker 2: take a minute, early break, because we're going to get 352 00:16:05,200 --> 00:16:08,760 Speaker 2: two credit unions versus bank by request. Topic will continue 353 00:16:08,760 --> 00:16:12,160 Speaker 2: with Brian James after these brief words. Fifty five krc 354 00:16:12,760 --> 00:16:13,560 Speaker 2: the simply. 355 00:16:13,560 --> 00:16:16,200 Speaker 1: Five KRCD talk station. 356 00:16:18,280 --> 00:16:22,080 Speaker 2: Eight twenty eight to fifty five KRCD talk station buy 357 00:16:22,200 --> 00:16:25,800 Speaker 2: request topics. You can do those and a lot of 358 00:16:25,840 --> 00:16:27,480 Speaker 2: folks wanted to know what the difference is between a 359 00:16:27,480 --> 00:16:29,640 Speaker 2: credit union and a bank, and Brian James from all 360 00:16:29,680 --> 00:16:31,720 Speaker 2: Worth Financial is going to dive on into the details 361 00:16:31,760 --> 00:16:34,120 Speaker 2: on that. I've always enjoyed banking with Emery now share 362 00:16:34,240 --> 00:16:37,240 Speaker 2: facts over the years, Brian, most notably the wonderful experience 363 00:16:37,280 --> 00:16:40,160 Speaker 2: of being able to refinance my house by just signing 364 00:16:40,160 --> 00:16:42,120 Speaker 2: a single sheet of paper, not going through the whole 365 00:16:42,120 --> 00:16:44,840 Speaker 2: process of refinancing, not having to pay a dime. The 366 00:16:44,960 --> 00:16:47,240 Speaker 2: rates dropped. They had a paper that said, okay, you 367 00:16:47,280 --> 00:16:50,800 Speaker 2: went from what four down to three? My signature, boom, 368 00:16:50,800 --> 00:16:53,400 Speaker 2: my rate was down to three. They keep the paper 369 00:16:53,400 --> 00:16:55,840 Speaker 2: in house at least at Emory and share Fax and 370 00:16:56,000 --> 00:16:57,880 Speaker 2: I like that. That's one thing that I know from 371 00:16:57,880 --> 00:16:58,800 Speaker 2: personal experience. 372 00:16:59,160 --> 00:17:02,200 Speaker 1: Yeah, simplify processes, those kinds of things. There's pros and 373 00:17:02,240 --> 00:17:05,119 Speaker 1: cons to each one of them, of course, But I 374 00:17:05,119 --> 00:17:06,959 Speaker 1: do want to shout out a quick thanks to our 375 00:17:07,080 --> 00:17:11,399 Speaker 1: our mysterious listener group of females who are interested in 376 00:17:11,480 --> 00:17:13,639 Speaker 1: financial topics and apparently have been listening to us for 377 00:17:13,680 --> 00:17:17,240 Speaker 1: a long time. And Lady Pacific question, thank you again 378 00:17:17,280 --> 00:17:20,359 Speaker 1: for listening and let's dive into this. So, okay, banks 379 00:17:20,440 --> 00:17:22,560 Speaker 1: versus credit unions At the end of the day, if 380 00:17:22,600 --> 00:17:25,280 Speaker 1: you need loans, checking accounts, savings depository, you're not going 381 00:17:25,359 --> 00:17:28,639 Speaker 1: to notice much difference. Functionally, they are pretty much the same. 382 00:17:29,000 --> 00:17:31,239 Speaker 1: So the differences between them. So, a bank is a 383 00:17:31,280 --> 00:17:34,280 Speaker 1: for profit entity. They're owned by the shareholders and the goal, 384 00:17:34,520 --> 00:17:37,440 Speaker 1: like any other business, as a generator return for those owners. 385 00:17:37,440 --> 00:17:40,639 Speaker 1: Having spent two fifteen years in the banking industry, I 386 00:17:40,680 --> 00:17:44,359 Speaker 1: can assure you that the customers come third, shareholders first, 387 00:17:44,520 --> 00:17:46,840 Speaker 1: regulator second, and then we'll get around to worrying for 388 00:17:46,840 --> 00:17:49,320 Speaker 1: the customers. This isn't I'm not painting the banks and 389 00:17:49,359 --> 00:17:52,560 Speaker 1: a bad bad light. It's just reality. If you've got 390 00:17:52,600 --> 00:17:54,679 Speaker 1: shareholders out there, they come first because we are the 391 00:17:54,760 --> 00:17:58,040 Speaker 1: United States of profit profit margin. Credit unions, on the 392 00:17:58,040 --> 00:18:01,000 Speaker 1: other hand, are nonprofit financial co operatives. They are owned 393 00:18:01,000 --> 00:18:03,040 Speaker 1: by their members. The members do want their profits, but 394 00:18:03,080 --> 00:18:06,360 Speaker 1: they come in the form of the dividends. That's why 395 00:18:06,400 --> 00:18:07,720 Speaker 1: if you if for those of you who have a 396 00:18:07,720 --> 00:18:10,199 Speaker 1: credit union account and a bank account, the way that 397 00:18:10,240 --> 00:18:13,240 Speaker 1: they label those interest payments is a little bit different. Yeah, 398 00:18:13,280 --> 00:18:15,879 Speaker 1: the banks will call it a you know, an interest payment. 399 00:18:16,280 --> 00:18:18,359 Speaker 1: Credit unions will call it like a share or something 400 00:18:18,400 --> 00:18:20,239 Speaker 1: like that because they are the owner of it. As 401 00:18:20,240 --> 00:18:22,960 Speaker 1: an account holder. So that's why the difference. Now, if 402 00:18:23,000 --> 00:18:27,600 Speaker 1: any one of them was mathematically, you know, identifiably calculably 403 00:18:27,760 --> 00:18:30,000 Speaker 1: more beneficial than the other in terms of really low 404 00:18:30,040 --> 00:18:32,520 Speaker 1: interest rates and really high depository rates, then the other 405 00:18:32,560 --> 00:18:34,880 Speaker 1: would not exist. It doesn't work that way, So don't 406 00:18:34,920 --> 00:18:38,439 Speaker 1: look for massive opportunities one direction or the other. So, 407 00:18:38,640 --> 00:18:41,199 Speaker 1: but let's talk about what is the difference here. So 408 00:18:41,760 --> 00:18:44,120 Speaker 1: first and foremost, safety first, If you've got a pile 409 00:18:44,119 --> 00:18:45,520 Speaker 1: of money somewhere, you want to know it's going to 410 00:18:45,600 --> 00:18:47,680 Speaker 1: be there. If you're holding money in a bank, that's 411 00:18:47,720 --> 00:18:51,000 Speaker 1: of course ensured by the FDIC. But at a credit 412 00:18:51,080 --> 00:18:53,639 Speaker 1: union there is a similar organization that most people aren't 413 00:18:53,640 --> 00:18:57,960 Speaker 1: familiar with. It's called the NCUA, the National Credit Union Association, 414 00:18:58,040 --> 00:19:01,080 Speaker 1: and it pretty much serves the same per is the FDI. See, 415 00:19:01,560 --> 00:19:04,000 Speaker 1: even those coverage limits are pretty much the same. It's 416 00:19:04,000 --> 00:19:08,600 Speaker 1: two hundred and fifty thousand dollars per institution, per account category. Right, 417 00:19:08,640 --> 00:19:10,119 Speaker 1: there's lots of games you can play with that on 418 00:19:10,160 --> 00:19:12,399 Speaker 1: both sides. You can have an individual account, you can 419 00:19:12,440 --> 00:19:14,480 Speaker 1: have a joint account with your spouse. You can have 420 00:19:14,520 --> 00:19:17,480 Speaker 1: accounts that are have your kids listened as beneficiaries. Each 421 00:19:17,480 --> 00:19:19,160 Speaker 1: of those has its own two hundred and fifty thousand 422 00:19:19,200 --> 00:19:22,440 Speaker 1: dollars coverage. But the point is your money is largely 423 00:19:22,560 --> 00:19:25,159 Speaker 1: no more safe in one versus the other. It's just 424 00:19:25,280 --> 00:19:29,560 Speaker 1: different organizations that are backing that up well. 425 00:19:29,600 --> 00:19:32,280 Speaker 2: And I know the credit union you're considered an owner 426 00:19:32,400 --> 00:19:34,840 Speaker 2: a shareholder. Going back to your point about shares, that 427 00:19:35,520 --> 00:19:39,120 Speaker 2: that's your slice of the part. That's how like for example, 428 00:19:39,119 --> 00:19:43,800 Speaker 2: in my refinancing situation, yes, the credit union collective is 429 00:19:43,880 --> 00:19:47,639 Speaker 2: making less money and interest payment on the loan, but 430 00:19:47,920 --> 00:19:50,919 Speaker 2: everybody benefits from the lower interest rate, which is why 431 00:19:51,000 --> 00:19:53,160 Speaker 2: you're making less of a profit. So you're getting three 432 00:19:53,160 --> 00:19:55,560 Speaker 2: percent when you used to get four or five. The 433 00:19:55,600 --> 00:19:57,919 Speaker 2: mortgage would have required you to continue to pay that 434 00:19:58,000 --> 00:20:00,199 Speaker 2: higher interest rate, which of course in youwers ti the 435 00:20:00,200 --> 00:20:02,760 Speaker 2: bank's benefit, which is why I guess they charge you 436 00:20:02,800 --> 00:20:05,800 Speaker 2: to go through the refinancing process. But it's just a 437 00:20:05,840 --> 00:20:09,720 Speaker 2: nice little perk being a quote unquote shareholder or owner. Yeah. 438 00:20:09,720 --> 00:20:12,679 Speaker 1: Absolutely, And if if you're truly about the if you 439 00:20:12,720 --> 00:20:17,080 Speaker 1: want to know where the money is flowing, you got me, 440 00:20:17,160 --> 00:20:17,639 Speaker 1: Mike died there. 441 00:20:17,720 --> 00:20:19,960 Speaker 2: Yes, you said flowing. I got all that. Where the 442 00:20:19,960 --> 00:20:20,639 Speaker 2: money is flowing? 443 00:20:20,640 --> 00:20:23,240 Speaker 1: Go ahead, where the money's going, and you can literally 444 00:20:23,280 --> 00:20:25,280 Speaker 1: participate if you if you want, you can run to 445 00:20:25,320 --> 00:20:27,560 Speaker 1: be a trustee of the of the credit union and 446 00:20:27,600 --> 00:20:29,359 Speaker 1: you could really get into the into the dirt of 447 00:20:29,400 --> 00:20:31,080 Speaker 1: how this stuff works. You can't really do that with 448 00:20:31,240 --> 00:20:33,000 Speaker 1: with your big publicly traded banks. 449 00:20:32,920 --> 00:20:34,080 Speaker 2: Unless you buy shares. 450 00:20:34,640 --> 00:20:36,040 Speaker 1: Yes, but you've got to buy an awful lot of 451 00:20:36,040 --> 00:20:37,959 Speaker 1: shares you're going to get invited to that table. 452 00:20:39,160 --> 00:20:40,480 Speaker 2: So so and this isn't. 453 00:20:40,280 --> 00:20:41,840 Speaker 1: You know, I feel like we're leaning toward the credit 454 00:20:41,880 --> 00:20:44,600 Speaker 1: union side pretty strongly there and that those are the 455 00:20:44,640 --> 00:20:46,840 Speaker 1: good reasons. A little more transparency and you can be 456 00:20:47,000 --> 00:20:49,159 Speaker 1: you can be a little lot more comfortable that the 457 00:20:49,240 --> 00:20:51,520 Speaker 1: decisions that are being made are really for your benefit 458 00:20:51,520 --> 00:20:53,600 Speaker 1: because they're being made by other members just like you, 459 00:20:54,040 --> 00:20:57,240 Speaker 1: versus a board of directors who is really only focused 460 00:20:57,280 --> 00:20:59,919 Speaker 1: on the on the shareholders. Now, so what's the downs 461 00:21:00,040 --> 00:21:02,119 Speaker 1: side of a credit Ye, Well, in a lot of cases, 462 00:21:02,280 --> 00:21:04,840 Speaker 1: you're going to be giving up some on say technology. 463 00:21:04,880 --> 00:21:08,080 Speaker 1: They're not going to have the flashiest internet interfaces and 464 00:21:08,440 --> 00:21:10,800 Speaker 1: mobile apps out there, and that's I do enjoy that 465 00:21:10,880 --> 00:21:12,840 Speaker 1: I use. I use my mobile banking apps all the 466 00:21:12,880 --> 00:21:14,359 Speaker 1: time because I don't want to see the inside of 467 00:21:14,359 --> 00:21:17,720 Speaker 1: a bank branch. Ever, again, bigger banks, of course will 468 00:21:17,720 --> 00:21:22,200 Speaker 1: have wider branch and ATM networks where credit unions often 469 00:21:22,240 --> 00:21:24,760 Speaker 1: will will participate in some kind of shared arrangement with 470 00:21:24,840 --> 00:21:26,560 Speaker 1: some other network that you might not be familiar with. 471 00:21:26,600 --> 00:21:28,679 Speaker 1: Don't let that rule it out. Do the research if 472 00:21:28,720 --> 00:21:30,960 Speaker 1: you if it's a little tiny credit union that you're 473 00:21:31,000 --> 00:21:34,280 Speaker 1: not all that familiar with, understand what that ATM network 474 00:21:34,320 --> 00:21:35,840 Speaker 1: looks like, and you can figure out. You know, a 475 00:21:35,840 --> 00:21:39,119 Speaker 1: lot of them will have places in random store chains 476 00:21:39,200 --> 00:21:42,200 Speaker 1: like UDF or. 477 00:21:41,520 --> 00:21:42,119 Speaker 2: Or that's P and C. 478 00:21:42,240 --> 00:21:45,000 Speaker 1: But but some of the gas station chains will have 479 00:21:45,080 --> 00:21:48,679 Speaker 1: some financial organization you've never heard of, and your local, tiny, 480 00:21:48,680 --> 00:21:50,480 Speaker 1: little credit union may be a member of that. So 481 00:21:50,720 --> 00:21:52,800 Speaker 1: you don't necessarily have to rely on all they've only 482 00:21:52,840 --> 00:21:55,120 Speaker 1: got three branches, so therefore I only have free ATMs. 483 00:21:55,119 --> 00:21:58,000 Speaker 1: That's not how that works. But on the other hand, 484 00:21:58,720 --> 00:22:03,040 Speaker 1: you're not gonna have as much flexibility on promotional bonuses, 485 00:22:03,119 --> 00:22:05,600 Speaker 1: right because banks are publicly traded entities. They want to 486 00:22:05,600 --> 00:22:07,679 Speaker 1: be able to show they're bringing on new customers all 487 00:22:07,720 --> 00:22:10,240 Speaker 1: the time. You'll get better bonuses for opening new accounts. 488 00:22:10,480 --> 00:22:13,760 Speaker 1: We talked about the more sophisticated online stuff you're never 489 00:22:13,800 --> 00:22:18,040 Speaker 1: going to see, for example, a fantastic credit card reward 490 00:22:18,160 --> 00:22:20,400 Speaker 1: program coming out of a credit union. You won't get 491 00:22:20,400 --> 00:22:22,160 Speaker 1: that that's going to come out of your publicly traded 492 00:22:22,200 --> 00:22:24,600 Speaker 1: banks who have a lot more resources to do things 493 00:22:24,640 --> 00:22:27,680 Speaker 1: like that to drive business, and they have different incentives 494 00:22:27,800 --> 00:22:30,120 Speaker 1: to go drive new business and bring in new customers 495 00:22:30,240 --> 00:22:32,199 Speaker 1: than a credit union does. So the different things that 496 00:22:32,200 --> 00:22:34,040 Speaker 1: there are differences in the things that they will do 497 00:22:34,119 --> 00:22:35,399 Speaker 1: to attract you in the first place. 498 00:22:35,480 --> 00:22:37,600 Speaker 2: Great, So you've given out a list of items, do 499 00:22:37,640 --> 00:22:39,879 Speaker 2: your work, do your homework, do the math, and figure 500 00:22:39,880 --> 00:22:42,200 Speaker 2: out what is in your best interest because it could 501 00:22:42,200 --> 00:22:43,600 Speaker 2: be a big bank, but it also could be a 502 00:22:43,600 --> 00:22:47,160 Speaker 2: federal credit union depending upon you know where your desires 503 00:22:47,200 --> 00:22:49,280 Speaker 2: lie and you know the interest rates that you're paying 504 00:22:49,320 --> 00:22:51,920 Speaker 2: in that kind of thing. Appreciate the breakdown Brian James 505 00:22:51,960 --> 00:22:54,639 Speaker 2: is very helpful exercise, and of course I appreciate the 506 00:22:54,640 --> 00:22:57,320 Speaker 2: conversation we have every week, and salute to the ladies 507 00:22:57,400 --> 00:23:00,320 Speaker 2: group that listens every Monday and Monday. Intent lead to 508 00:23:00,359 --> 00:23:02,800 Speaker 2: Brian James. You do great work. Brian will have you 509 00:23:02,800 --> 00:23:04,760 Speaker 2: on next Monday. Have a great week, my friend. 510 00:23:04,680 --> 00:23:06,719 Speaker 1: I appreciate it. Thanks for the time, and thank you ladies. 511 00:23:06,920 --> 00:23:09,280 Speaker 2: Don't go away, Eric Trump of the book Under Siege, 512 00:23:09,280 --> 00:23:10,159 Speaker 2: you'll be on next. 513 00:23:11,119 --> 00:23:13,960 Speaker 1: This is fifty five KRC and iHeartRadio.