1 00:00:00,000 --> 00:00:00,840 Speaker 1: We got a lot today. 2 00:00:00,920 --> 00:00:03,640 Speaker 2: Do you I do got to put up these Halloween decorations? 3 00:00:03,760 --> 00:00:05,280 Speaker 1: Will it's time to do it? Dude? 4 00:00:05,280 --> 00:00:07,520 Speaker 3: The rest I do need to know On fifty five 5 00:00:07,640 --> 00:00:09,840 Speaker 3: KRC the talk station. 6 00:00:16,040 --> 00:00:18,720 Speaker 1: Tonight, the government is still closed. 7 00:00:19,160 --> 00:00:21,600 Speaker 4: The four letter word that could be gobbling up your 8 00:00:21,600 --> 00:00:25,279 Speaker 4: portfolio and we answer your questions. You're listening to Simply Money, 9 00:00:25,360 --> 00:00:28,040 Speaker 4: presented by all Worth Financial on Bob Sponseller along with 10 00:00:28,080 --> 00:00:30,400 Speaker 4: Brian James Well tonight. 11 00:00:30,440 --> 00:00:32,800 Speaker 1: The federal government remains shut down. 12 00:00:33,000 --> 00:00:35,720 Speaker 4: Last night, the Senate voted fifty two to forty two 13 00:00:35,920 --> 00:00:40,639 Speaker 4: against passing the House passed bill. Just as a reminder, 14 00:00:40,760 --> 00:00:43,519 Speaker 4: it needs sixty votes to advance in the Senate, and 15 00:00:43,560 --> 00:00:46,680 Speaker 4: this was the fifth Senate no vote on this resolution 16 00:00:46,800 --> 00:00:49,600 Speaker 4: to fund the government. And even if it gets funded 17 00:00:49,640 --> 00:00:53,480 Speaker 4: only through November twenty first, So we've got issues in Washington. 18 00:00:53,520 --> 00:00:55,800 Speaker 1: The current shutdown, which. 19 00:00:55,600 --> 00:01:00,160 Speaker 4: Began officially at twelve oh one am Eastern Time last Wednesday, 20 00:01:00,720 --> 00:01:04,080 Speaker 4: has happened largely. The sticking point here is because Democrats 21 00:01:04,080 --> 00:01:09,120 Speaker 4: and Republicans are locked in a literal standoff over extending 22 00:01:09,640 --> 00:01:11,480 Speaker 4: Obamacare subsidies. 23 00:01:11,600 --> 00:01:14,199 Speaker 1: In the recent funding legislation that went. 24 00:01:14,080 --> 00:01:18,200 Speaker 4: Into effect during COVID and you know, both parties are 25 00:01:18,200 --> 00:01:21,959 Speaker 4: divided on whether to extend these at all, whether to 26 00:01:22,000 --> 00:01:25,600 Speaker 4: partially extend them, whether to wean people off of those extensions, 27 00:01:25,640 --> 00:01:29,640 Speaker 4: and neither side is budging, Brian, and the chaos in 28 00:01:29,840 --> 00:01:31,960 Speaker 4: Washington continues unabated. 29 00:01:32,560 --> 00:01:35,680 Speaker 5: Yeah, this is this is coming down to fundamental party beliefs. 30 00:01:35,959 --> 00:01:39,600 Speaker 5: Of course, that the the Obamacare Act, the Affordable Care Act, 31 00:01:40,600 --> 00:01:43,760 Speaker 5: was passed years ago, with when when the Democrats had 32 00:01:43,760 --> 00:01:47,919 Speaker 5: the majority, head control, and obviously that's a very passionate. 33 00:01:47,480 --> 00:01:50,120 Speaker 1: Piece for that side of the aisle there, and that's. 34 00:01:50,000 --> 00:01:51,920 Speaker 5: What they're digging in on, and Republicans are kind of 35 00:01:51,920 --> 00:01:55,760 Speaker 5: standing there, going, how dare you be so passionate about you? 36 00:01:55,920 --> 00:01:58,040 Speaker 5: Why can't you just let it go? It seems to 37 00:01:58,080 --> 00:02:01,000 Speaker 5: me it's immovable object in here, resistible force. So it's 38 00:02:01,000 --> 00:02:02,800 Speaker 5: going to be really interesting to see how this works out. 39 00:02:03,000 --> 00:02:05,760 Speaker 5: But eight votes, that's not a squeaker either, right, They've 40 00:02:05,760 --> 00:02:07,320 Speaker 5: got fifty two votes they need sixty. 41 00:02:07,360 --> 00:02:09,280 Speaker 1: That is not close. So this one's going to drag 42 00:02:09,320 --> 00:02:10,040 Speaker 1: on for a little bit. 43 00:02:10,440 --> 00:02:12,520 Speaker 5: So the so, as you mentioned, the funding bill has 44 00:02:12,560 --> 00:02:14,160 Speaker 5: already passed the House of Representatives. 45 00:02:14,520 --> 00:02:17,080 Speaker 1: Democrats are stopping it. So because of those sixty votes. 46 00:02:17,120 --> 00:02:20,200 Speaker 5: Republicans only have a fifty three to forty seven majority, 47 00:02:20,280 --> 00:02:22,680 Speaker 5: So this is this is going to drag out a bit. 48 00:02:22,880 --> 00:02:24,960 Speaker 5: This is looking a little different from these past ones 49 00:02:25,000 --> 00:02:28,280 Speaker 5: because the Trump White House's Office of Management Budgmen budget 50 00:02:29,000 --> 00:02:31,959 Speaker 5: is talking about layoffs. You know, there's a difference between 51 00:02:31,960 --> 00:02:34,840 Speaker 5: furloughs and layoffs. Layoffs means these jobs are just done, 52 00:02:35,240 --> 00:02:36,960 Speaker 5: versus a furlough, which means we're going to show off 53 00:02:37,000 --> 00:02:38,440 Speaker 5: your paycheck for a while and you can take some 54 00:02:38,520 --> 00:02:41,320 Speaker 5: time off. So in the past, federal employees who weren't 55 00:02:41,360 --> 00:02:44,480 Speaker 5: classified as essential, remember essential employees, and we had all 56 00:02:44,520 --> 00:02:47,960 Speaker 5: those headlines. But people who weren't labeled as essential got furloughed, 57 00:02:48,160 --> 00:02:49,959 Speaker 5: as they have been this month, but they didn't face 58 00:02:50,000 --> 00:02:50,720 Speaker 5: the threat of layoffs. 59 00:02:50,800 --> 00:02:52,440 Speaker 1: That's the new thing that's happening right now. 60 00:02:53,680 --> 00:02:56,359 Speaker 4: Yeah, I heard a couple interviews, you know, early this 61 00:02:56,440 --> 00:03:00,840 Speaker 4: morning as far as when the proverbial stuff's gonna hit 62 00:03:00,880 --> 00:03:02,600 Speaker 4: the fan here and a couple of dates. Just to 63 00:03:02,680 --> 00:03:05,960 Speaker 4: keep in mind. October fifteenth is when the military is 64 00:03:06,000 --> 00:03:08,960 Speaker 4: scheduled to get paid. That's their next paycheck. And I 65 00:03:09,000 --> 00:03:11,720 Speaker 4: don't think anybody I think, I think phone calls are 66 00:03:11,880 --> 00:03:14,679 Speaker 4: going to start to come into Washington, you know, all 67 00:03:14,760 --> 00:03:19,480 Speaker 4: congressional offices. When you don't pay the military personnel, even 68 00:03:19,520 --> 00:03:23,040 Speaker 4: though after these shutsdowns end, everybody always gets their money, 69 00:03:23,320 --> 00:03:25,880 Speaker 4: Let's face it, Brian. You know people that are living 70 00:03:25,960 --> 00:03:29,000 Speaker 4: paycheck to paycheck and they need that check to just function, 71 00:03:29,520 --> 00:03:30,880 Speaker 4: you know, and a lot of time, a lot of 72 00:03:30,919 --> 00:03:34,760 Speaker 4: a lot of these military personnel are overseas away from 73 00:03:34,760 --> 00:03:37,840 Speaker 4: their family. The spouse at home with the kids is 74 00:03:37,920 --> 00:03:40,040 Speaker 4: just trying to keep, you know, food on the table. 75 00:03:40,480 --> 00:03:43,080 Speaker 4: You don't pay these people on the fifteenth of October, 76 00:03:43,240 --> 00:03:47,120 Speaker 4: that's an issue, and then on October twentieth, that's where 77 00:03:47,240 --> 00:03:51,440 Speaker 4: the vast majority of government employees get their next paycheck. 78 00:03:51,880 --> 00:03:55,720 Speaker 4: So we've got some important dates coming up. I heard 79 00:03:55,960 --> 00:03:59,000 Speaker 4: I heard an interview this morning, Brian with Maya mcguinnis. 80 00:03:59,000 --> 00:04:02,000 Speaker 4: She's the head of something called the Committee for a 81 00:04:02,040 --> 00:04:06,360 Speaker 4: Responsible Government Budget or whatever you call it. You know, 82 00:04:06,480 --> 00:04:11,480 Speaker 4: pretty nonpartisan group, nice lady, well spoken. She said a 83 00:04:11,520 --> 00:04:13,280 Speaker 4: lot of the things that you and I have been 84 00:04:13,280 --> 00:04:16,040 Speaker 4: talking about for weeks and months on this show, Brian, 85 00:04:16,120 --> 00:04:18,280 Speaker 4: And it's just we got to get people in a 86 00:04:18,360 --> 00:04:21,800 Speaker 4: room and be adults and just level with the American 87 00:04:21,880 --> 00:04:25,960 Speaker 4: public on what the situation is. I mean, we're marching 88 00:04:26,080 --> 00:04:29,880 Speaker 4: toward thirty eight trillion dollars in debt. But as she 89 00:04:30,040 --> 00:04:33,040 Speaker 4: pointed out, you know, anytime you pass a tax cut 90 00:04:33,600 --> 00:04:37,040 Speaker 4: and say that might be you know, temporary, people don't 91 00:04:37,120 --> 00:04:40,440 Speaker 4: like ending tax cuts. And then anytime you give out 92 00:04:40,480 --> 00:04:45,120 Speaker 4: another government program or paycheck like these extended you know, 93 00:04:45,200 --> 00:04:48,640 Speaker 4: Medicare subsidies that were put in during COVID. You know, 94 00:04:49,200 --> 00:04:52,440 Speaker 4: COVID's gone, but we're still paying out the subsidies, nobody 95 00:04:52,600 --> 00:04:56,640 Speaker 4: likes those temporary benefits to end. In reality, people are 96 00:04:56,640 --> 00:04:58,440 Speaker 4: going to get have to get in a room and 97 00:04:58,520 --> 00:05:01,120 Speaker 4: just level with the American public here that we're going 98 00:05:01,200 --> 00:05:03,880 Speaker 4: to have to pay our bills somehow. We can't just 99 00:05:04,040 --> 00:05:08,039 Speaker 4: keep printing money as we march ahead toward thirty eight 100 00:05:08,120 --> 00:05:10,040 Speaker 4: trillion dollars in federal debt. 101 00:05:10,720 --> 00:05:12,400 Speaker 5: Yeah, and then that would be nice if we had 102 00:05:12,400 --> 00:05:14,800 Speaker 5: an adult in the room who could stand across the aisle, 103 00:05:14,880 --> 00:05:16,880 Speaker 5: not on one side or the other, but just say, look, 104 00:05:16,920 --> 00:05:18,440 Speaker 5: you all can argue as much as you want, but 105 00:05:18,520 --> 00:05:20,400 Speaker 5: this math just don't math, and we have got to 106 00:05:20,400 --> 00:05:23,080 Speaker 5: start acting like adults. But unfortunately I don't hear that 107 00:05:23,160 --> 00:05:26,880 Speaker 5: coming right, So we're almost uh you know, we're about 108 00:05:26,880 --> 00:05:29,760 Speaker 5: a year through this, this this first year, the of 109 00:05:29,839 --> 00:05:31,040 Speaker 5: the second Trump administration. 110 00:05:31,080 --> 00:05:32,480 Speaker 1: Midterms are going to be on top of us. 111 00:05:32,480 --> 00:05:35,440 Speaker 5: It usually would be about now, it seems like that 112 00:05:35,480 --> 00:05:38,360 Speaker 5: we would start hearing from that person out of nowhere 113 00:05:38,360 --> 00:05:40,000 Speaker 5: who may have a different point of view. But it 114 00:05:40,080 --> 00:05:42,160 Speaker 5: just doesn't seem like anybody is willing to step up 115 00:05:42,200 --> 00:05:43,600 Speaker 5: and do that, uh, you know. 116 00:05:43,760 --> 00:05:47,080 Speaker 1: Any anytime soon. So but I worry about that. 117 00:05:47,120 --> 00:05:50,080 Speaker 5: I feel like in terms of our overall role of 118 00:05:50,160 --> 00:05:53,520 Speaker 5: as financial planners and helping people retire, plan for retirement, 119 00:05:53,600 --> 00:05:55,320 Speaker 5: and they're you know, they're living their. 120 00:05:55,240 --> 00:05:56,120 Speaker 1: Best lives and so forth. 121 00:05:56,160 --> 00:05:58,120 Speaker 5: I'm not overally worried about that, because I'm pretty sure 122 00:05:58,480 --> 00:06:01,480 Speaker 5: that the the stock markets and bond markets will continue 123 00:06:01,480 --> 00:06:03,760 Speaker 5: to function as always, but just in terms of the 124 00:06:03,800 --> 00:06:05,960 Speaker 5: overall chaos that we just seem to keep, you know, 125 00:06:06,240 --> 00:06:08,640 Speaker 5: like we're in a cartoon stepping on a rake over 126 00:06:08,680 --> 00:06:09,360 Speaker 5: and over and over again. 127 00:06:09,400 --> 00:06:11,360 Speaker 1: That way we drag ourselves through these cycles. 128 00:06:11,360 --> 00:06:13,279 Speaker 5: So it does create a lot of distraction and a 129 00:06:13,279 --> 00:06:15,560 Speaker 5: lot of concern, and we're gonna need some more time 130 00:06:15,560 --> 00:06:16,839 Speaker 5: to sort this one out. 131 00:06:17,320 --> 00:06:20,280 Speaker 4: Yeah, I did hear you know a brief interview with 132 00:06:20,520 --> 00:06:22,880 Speaker 4: President Trump. I think it was last evening, and he 133 00:06:23,000 --> 00:06:24,960 Speaker 4: talked about you know, and he always said, you know, 134 00:06:25,040 --> 00:06:27,120 Speaker 4: good things are coming, hang in there. 135 00:06:27,000 --> 00:06:28,240 Speaker 1: What have you. 136 00:06:28,240 --> 00:06:30,320 Speaker 4: You know, it seems like he's going to try to 137 00:06:30,360 --> 00:06:32,400 Speaker 4: get these people back in a room and get something 138 00:06:32,440 --> 00:06:34,960 Speaker 4: done because Brian, and this is just my opinion at 139 00:06:34,960 --> 00:06:37,719 Speaker 4: this point, I don't know that it does a whole 140 00:06:37,720 --> 00:06:40,800 Speaker 4: lot of good to solve the problem for less than 141 00:06:40,880 --> 00:06:45,000 Speaker 4: thirty days and be right back where we started again 142 00:06:45,160 --> 00:06:46,400 Speaker 4: on November twenty. 143 00:06:46,440 --> 00:06:49,200 Speaker 5: First, that's what we're doing right now, is we kicked 144 00:06:49,200 --> 00:06:51,360 Speaker 5: the canson now back in March. That's why we're having 145 00:06:51,440 --> 00:06:52,040 Speaker 5: this conversation. 146 00:06:52,120 --> 00:06:54,640 Speaker 1: Yeah, yeah, my point here, and then we'll move on. 147 00:06:54,760 --> 00:06:57,000 Speaker 4: I hope the President can get these folks in a 148 00:06:57,080 --> 00:07:00,080 Speaker 4: room and say, look, let's get something done now so 149 00:07:00,120 --> 00:07:02,000 Speaker 4: we don't have to do it again in November, is 150 00:07:02,040 --> 00:07:04,880 Speaker 4: my point. But as the President always likes to say, 151 00:07:05,000 --> 00:07:06,839 Speaker 4: quote unquote, we'll see what happens. 152 00:07:06,839 --> 00:07:08,640 Speaker 1: So yep, we will see what happens. 153 00:07:08,680 --> 00:07:11,800 Speaker 4: So meanwhile, we will of course keep all of you 154 00:07:11,840 --> 00:07:14,920 Speaker 4: posted on the progress. You're listening to Simply Money presented 155 00:07:14,960 --> 00:07:18,800 Speaker 4: by all Worth Financial on Bob Sponseller along with Brian James. 156 00:07:19,440 --> 00:07:22,480 Speaker 4: All right, if you need another example of how AI 157 00:07:22,720 --> 00:07:27,440 Speaker 4: is becoming more impactful on the stock market, it is 158 00:07:27,520 --> 00:07:32,840 Speaker 4: this Open AI and chip designer Advanced micro Devices announced 159 00:07:32,880 --> 00:07:37,120 Speaker 4: a multi billion dollar partnership to collaborate on AI data 160 00:07:37,160 --> 00:07:40,720 Speaker 4: centers that will run on AMD processors, one of the 161 00:07:40,800 --> 00:07:47,360 Speaker 4: most direct challenges yet to the virtual i'll say domination 162 00:07:47,600 --> 00:07:49,480 Speaker 4: of industry leader Navidia. 163 00:07:49,520 --> 00:07:53,200 Speaker 5: Brian, Yeah, this is a big deal from a standpoint 164 00:07:53,280 --> 00:07:56,320 Speaker 5: of this is the United States State is staking a 165 00:07:56,360 --> 00:07:59,920 Speaker 5: bigger foothold in semiconductors here. So open Ai is a 166 00:08:00,160 --> 00:08:03,480 Speaker 5: US based company and so is a MD these this 167 00:08:03,760 --> 00:08:06,400 Speaker 5: order for semiconductors could have gone anywhere in the world 168 00:08:06,840 --> 00:08:09,280 Speaker 5: and it's staying here of course, so that is that's 169 00:08:09,360 --> 00:08:12,240 Speaker 5: a very good sign. But the details behind this, Opening 170 00:08:12,240 --> 00:08:14,600 Speaker 5: Eye is gonna partner with AMD to either design or 171 00:08:14,680 --> 00:08:17,560 Speaker 5: co develop these more advanced AI chips. This is a 172 00:08:17,560 --> 00:08:21,880 Speaker 5: broader push to produce reliance on in Video's GPUs, which 173 00:08:21,960 --> 00:08:24,360 Speaker 5: that that's those dominate the market, right, Just like you said, 174 00:08:24,400 --> 00:08:27,800 Speaker 5: they have about eighty to ninety percent of the equipment used 175 00:08:27,800 --> 00:08:31,480 Speaker 5: here has in Vidia guts in it, so that this 176 00:08:31,560 --> 00:08:33,680 Speaker 5: is a good thing. I think competition is always helpful. 177 00:08:33,720 --> 00:08:36,160 Speaker 5: We can't have, we shouldn't ever have the risk of 178 00:08:36,480 --> 00:08:39,319 Speaker 5: one source for everything, and it's going to drive into 179 00:08:39,360 --> 00:08:42,840 Speaker 5: video and AMD to to continue to innovate and be 180 00:08:42,920 --> 00:08:45,640 Speaker 5: more and more powerful. The goal here is to diversify 181 00:08:45,679 --> 00:08:49,199 Speaker 5: supply and control costs, and videos chips are in such 182 00:08:49,280 --> 00:08:52,200 Speaker 5: high demand. Even the big players like Microsoft and Amazon 183 00:08:52,240 --> 00:08:54,959 Speaker 5: have trouble securing enough inventory. That just isn't enough of 184 00:08:55,000 --> 00:08:56,520 Speaker 5: it out there. So it's good that we're going to 185 00:08:56,559 --> 00:08:57,839 Speaker 5: have a second resource. 186 00:08:57,480 --> 00:08:59,480 Speaker 1: For these I totally agree. 187 00:08:59,559 --> 00:09:02,840 Speaker 4: And you know, in case people, well, we talked yesterday 188 00:09:03,240 --> 00:09:06,400 Speaker 4: about the importance and the benefit of over a long 189 00:09:06,480 --> 00:09:10,400 Speaker 4: term basis diversifying your portfolio. Case and point Brian, just 190 00:09:10,440 --> 00:09:15,280 Speaker 4: for kicks, I pulled up the I Shares Semiconductor Index 191 00:09:15,360 --> 00:09:19,440 Speaker 4: ETF this morning and I looked at the return over 192 00:09:19,480 --> 00:09:23,719 Speaker 4: the last six months. This is a broadly diversified ETF 193 00:09:24,080 --> 00:09:28,920 Speaker 4: that focuses mainly on the semiconductor index. It's up seventy 194 00:09:29,000 --> 00:09:33,000 Speaker 4: nine percent in the last six months. And as we 195 00:09:33,040 --> 00:09:35,400 Speaker 4: talked about yesterday, not all of that gain is in 196 00:09:35,440 --> 00:09:38,280 Speaker 4: the video, So this thing is broadening out among the 197 00:09:38,320 --> 00:09:42,440 Speaker 4: sector and what we find almost you know invariably in 198 00:09:42,640 --> 00:09:48,680 Speaker 4: every industry. The more you inject competition, innovation improves, prices 199 00:09:48,720 --> 00:09:52,800 Speaker 4: come down. It's good for consumers, it's good for businesses. 200 00:09:53,200 --> 00:09:56,040 Speaker 4: You know, this is all a good thing. And you know, 201 00:09:56,160 --> 00:09:59,640 Speaker 4: Intel is I think waking up and getting back in 202 00:09:59,640 --> 00:10:03,680 Speaker 4: into so you know, again, if you have a broadly 203 00:10:03,679 --> 00:10:06,880 Speaker 4: diversified portfolio, just say the whole S and P five 204 00:10:06,960 --> 00:10:11,319 Speaker 4: hundred or the NASDAC or even a sector specific ETF, 205 00:10:11,679 --> 00:10:15,640 Speaker 4: you're giving exposure to all of these companies, even a 206 00:10:15,720 --> 00:10:18,520 Speaker 4: lot of companies like we mentioned yesterday that people aren't 207 00:10:18,559 --> 00:10:20,840 Speaker 4: talking about every day on the news, but yet you 208 00:10:20,920 --> 00:10:24,280 Speaker 4: look up six months later, an entire sector is up 209 00:10:24,320 --> 00:10:25,439 Speaker 4: almost eighty percent. 210 00:10:26,360 --> 00:10:28,640 Speaker 5: Yes, And I think one of the other points of 211 00:10:28,679 --> 00:10:30,439 Speaker 5: view all want to take on this is how does 212 00:10:30,480 --> 00:10:32,640 Speaker 5: this look? Because I think we're all used to looking 213 00:10:32,679 --> 00:10:34,480 Speaker 5: at these technology booms they always come out of the 214 00:10:34,520 --> 00:10:36,960 Speaker 5: technology industry because that's just kind of on the forefront 215 00:10:36,960 --> 00:10:38,320 Speaker 5: of innovation and so forth. 216 00:10:38,320 --> 00:10:39,000 Speaker 1: So it's always. 217 00:10:38,800 --> 00:10:41,920 Speaker 5: Tempting to look at that and just see if we 218 00:10:41,960 --> 00:10:44,000 Speaker 5: feel like it's going to become what we what we 219 00:10:44,040 --> 00:10:46,760 Speaker 5: all experienced as the first technology bubble, which is which 220 00:10:46,840 --> 00:10:48,840 Speaker 5: was the dot com era about twenty five years ago. 221 00:10:48,880 --> 00:10:51,199 Speaker 5: So there are some parallels to draw there, but there's 222 00:10:51,240 --> 00:10:54,319 Speaker 5: also some big differences. So that the dot com bubble 223 00:10:54,360 --> 00:10:57,360 Speaker 5: similar to this current AI boom, lots of speculative frenzy, 224 00:10:57,400 --> 00:11:00,920 Speaker 5: sky high valuations, right, But whenever, whenever we get excited 225 00:11:00,920 --> 00:11:03,360 Speaker 5: about some new technology and the herd starts to throw 226 00:11:03,400 --> 00:11:06,080 Speaker 5: money at it, that results in these ridiculous valuations. And 227 00:11:06,080 --> 00:11:08,160 Speaker 5: that's where we're sitting now on some of these. However, 228 00:11:08,200 --> 00:11:09,880 Speaker 5: that was true a year ago and it continues to 229 00:11:09,920 --> 00:11:13,640 Speaker 5: be true as this all takes its it takes root here. 230 00:11:13,880 --> 00:11:17,600 Speaker 5: So these investments involve heavy infrastructure, a lot of capital intensity, 231 00:11:17,640 --> 00:11:20,440 Speaker 5: a lot of sunk costs, and you know, there's always 232 00:11:20,440 --> 00:11:22,640 Speaker 5: the high risk of blow ups amongst the amongst the 233 00:11:22,640 --> 00:11:24,240 Speaker 5: ones who don't make it that Those are the things 234 00:11:24,280 --> 00:11:27,080 Speaker 5: that that that this current AI boom has in common. 235 00:11:27,360 --> 00:11:27,560 Speaker 1: Now. 236 00:11:27,559 --> 00:11:30,280 Speaker 5: The difference is, though, are the companies behind this this 237 00:11:30,400 --> 00:11:30,960 Speaker 5: time around? 238 00:11:31,080 --> 00:11:32,480 Speaker 1: Are the ones who are already established? 239 00:11:32,679 --> 00:11:35,240 Speaker 5: So remember the dot com boom, it was all companies 240 00:11:35,280 --> 00:11:37,680 Speaker 5: with cool names and cool websites that didn't really have 241 00:11:37,760 --> 00:11:41,840 Speaker 5: any any profit behind them. Well, this is this is 242 00:11:41,880 --> 00:11:45,960 Speaker 5: mainly being driven by Microsoft, Alphabet Meta, Amazon obviously already 243 00:11:46,000 --> 00:11:49,720 Speaker 5: substantially profitable and ridiculous cashlows. They are the ones funding 244 00:11:49,720 --> 00:11:52,200 Speaker 5: this boom because they're going to benefit the most from it. Uh. 245 00:11:52,400 --> 00:11:55,080 Speaker 5: And of course we've got the chip companies that those 246 00:11:55,160 --> 00:11:57,679 Speaker 5: existed before. Both Nvidia and AMD have been around for 247 00:11:57,720 --> 00:11:59,960 Speaker 5: a very long time. They're just making different kinds of 248 00:12:00,040 --> 00:12:02,800 Speaker 5: ships that serve different purposes now, so. 249 00:12:02,760 --> 00:12:03,880 Speaker 1: There's more diversification. 250 00:12:03,960 --> 00:12:06,680 Speaker 5: There are more mature capital markets supporting all of this 251 00:12:06,800 --> 00:12:08,880 Speaker 5: than there was during the during the dot com boom. 252 00:12:09,000 --> 00:12:10,079 Speaker 1: And also there's a little more. 253 00:12:10,040 --> 00:12:14,920 Speaker 5: Skepticism and UH and and regulatory paying of attention, if 254 00:12:14,920 --> 00:12:17,880 Speaker 5: you will, rather than what there was. And the dot 255 00:12:17,920 --> 00:12:19,559 Speaker 5: com era was kind of more of the wild West. 256 00:12:19,600 --> 00:12:21,480 Speaker 5: So I feel good that this is a this is 257 00:12:21,520 --> 00:12:23,560 Speaker 5: a catalyst that's going to push us forward. We benefit 258 00:12:23,600 --> 00:12:25,120 Speaker 5: a lot from it here at all Worth Financial, and 259 00:12:25,160 --> 00:12:27,080 Speaker 5: I know that other companies do as well. 260 00:12:27,440 --> 00:12:29,120 Speaker 1: And I don't think this is the same thing as 261 00:12:29,160 --> 00:12:32,080 Speaker 1: the dot com Bob Well said, I totally agree. 262 00:12:32,080 --> 00:12:35,720 Speaker 4: Coming up next, the four letter word that's draining your retirement, 263 00:12:35,840 --> 00:12:38,440 Speaker 4: And know it's not what you say when you open 264 00:12:38,520 --> 00:12:41,520 Speaker 4: up your brokerage statement when the market's down, you're listening 265 00:12:41,520 --> 00:12:44,480 Speaker 4: to simply Money presented by all Worth Financial on fifty five. 266 00:12:44,360 --> 00:12:46,520 Speaker 1: K r C, the talk station. 267 00:12:49,960 --> 00:12:55,880 Speaker 5: SLOTD Chicago Murders every weekend Democrats talking about socialism, extraterrestrial technology. 268 00:12:55,960 --> 00:12:56,840 Speaker 3: You know the facts. 269 00:12:56,960 --> 00:13:00,240 Speaker 4: Listen here everything Know everything, You behind me to know 270 00:13:00,480 --> 00:13:03,079 Speaker 4: fifty five Paras Talk Station. 271 00:13:03,960 --> 00:13:07,800 Speaker 3: All Worth Financial a registered investment advisory firm. Any ideas 272 00:13:07,840 --> 00:13:10,880 Speaker 3: presented during this program are not intended to provide specific 273 00:13:10,920 --> 00:13:14,960 Speaker 3: financial advice. You should consult your own financial advisor, tax consultant, 274 00:13:15,120 --> 00:13:18,200 Speaker 3: or a state planning attorney to conduct your own due diligence. 275 00:13:22,520 --> 00:13:25,160 Speaker 4: You're listening to Simply Money, presented by all Worth Financial. 276 00:13:25,160 --> 00:13:28,360 Speaker 4: I'm Bob Sponsorer along with Brian James. If you can't 277 00:13:28,360 --> 00:13:31,199 Speaker 4: listen to Simply Money live every night, subscribe and get 278 00:13:31,200 --> 00:13:34,080 Speaker 4: our daily podcast. You can listen the following morning during 279 00:13:34,120 --> 00:13:36,679 Speaker 4: your commute or at the gym, or during your walk 280 00:13:36,720 --> 00:13:37,679 Speaker 4: around the neighborhood. 281 00:13:37,720 --> 00:13:39,280 Speaker 1: And if you think your friends. 282 00:13:38,880 --> 00:13:42,319 Speaker 4: And family could use some financial advice, tell them about 283 00:13:42,400 --> 00:13:45,640 Speaker 4: us as well. Just search Simply Money on the iHeart 284 00:13:45,679 --> 00:13:49,839 Speaker 4: app or wherever you find your podcast. Should you sell 285 00:13:49,840 --> 00:13:53,440 Speaker 4: that second home, start gifting to your kids? Or are 286 00:13:53,480 --> 00:13:56,800 Speaker 4: you just trying to figure out why everything feels so expensive. 287 00:13:57,160 --> 00:13:59,319 Speaker 4: Those are all the questions we'll answer for you, and 288 00:13:59,440 --> 00:14:02,720 Speaker 4: more come out up at six forty three. All right, 289 00:14:02,760 --> 00:14:06,959 Speaker 4: we talk a lot about returns, tax strategies, even market volatility, 290 00:14:07,080 --> 00:14:09,280 Speaker 4: but when was the last time you really looked at 291 00:14:09,320 --> 00:14:11,400 Speaker 4: how much you're paying in fees? 292 00:14:11,520 --> 00:14:14,160 Speaker 1: That's right, the four letter word fees. 293 00:14:14,679 --> 00:14:18,439 Speaker 4: Fees can easily mean the difference between funding a grandchild's 294 00:14:18,480 --> 00:14:22,040 Speaker 4: college education or not being able to get that done, 295 00:14:22,080 --> 00:14:25,360 Speaker 4: between retiring at age sixty three or having to work 296 00:14:25,440 --> 00:14:28,800 Speaker 4: until age sixty seven. You know, we say all the time, 297 00:14:28,880 --> 00:14:32,120 Speaker 4: if you're working with a good fiduciary advisor and you're 298 00:14:32,120 --> 00:14:37,120 Speaker 4: paying a fee, hopefully and most likely you are getting 299 00:14:37,160 --> 00:14:40,400 Speaker 4: real value in other words, a true comprehensive financial plan, 300 00:14:41,120 --> 00:14:46,880 Speaker 4: proactive tax strategies, investment management, retirement income planning, a state coordination, 301 00:14:47,080 --> 00:14:50,320 Speaker 4: and other words, the whole ball of wax. What we're 302 00:14:50,360 --> 00:14:53,880 Speaker 4: talking about tonight are the fees. You don't see, those 303 00:14:53,960 --> 00:14:57,160 Speaker 4: hidden costs that add up over time and often don't 304 00:14:57,200 --> 00:14:59,480 Speaker 4: provide any value whatsoever. 305 00:14:59,560 --> 00:15:02,560 Speaker 5: Brian, Yeah, people often miss these layered fees. So you 306 00:15:02,560 --> 00:15:05,760 Speaker 5: could be paying a percentage for advice, and then another 307 00:15:05,840 --> 00:15:08,720 Speaker 5: in mutual fund expense ratios, and then plus hidden trading 308 00:15:08,760 --> 00:15:11,000 Speaker 5: costs inside those funds, So you need to make sure 309 00:15:11,200 --> 00:15:13,400 Speaker 5: when you talk to your advisor that you understand that 310 00:15:13,440 --> 00:15:16,720 Speaker 5: it's all laid out in front of you. So any 311 00:15:16,920 --> 00:15:19,000 Speaker 5: investment vehicle is going to have expenses. That's just the 312 00:15:19,080 --> 00:15:21,960 Speaker 5: reality of life. Mutual Funds can be some of the 313 00:15:22,000 --> 00:15:24,360 Speaker 5: more expensive types of things, and when we talk about 314 00:15:24,440 --> 00:15:26,720 Speaker 5: expense ratios, we're talking about fees that you're not going 315 00:15:26,800 --> 00:15:29,800 Speaker 5: to see unless you go looking for them. Expense ratios 316 00:15:29,840 --> 00:15:32,680 Speaker 5: are buried inside a mutual fund or an exchange traded 317 00:15:32,720 --> 00:15:36,280 Speaker 5: fund ETF in a way that it's built into the price. 318 00:15:36,800 --> 00:15:39,120 Speaker 5: So those deductions are taken literally every day. You're not 319 00:15:39,160 --> 00:15:40,680 Speaker 5: going to see it come out of your account. It's 320 00:15:40,680 --> 00:15:43,240 Speaker 5: built into the price of the fund, and so it's 321 00:15:43,280 --> 00:15:45,920 Speaker 5: something that won't get your attention very much. So mutual 322 00:15:45,960 --> 00:15:49,000 Speaker 5: funds can sometimes be Oftentimes they're in the neighborhood of 323 00:15:49,200 --> 00:15:50,920 Speaker 5: half percent to one percent if you're talking about a 324 00:15:50,920 --> 00:15:53,400 Speaker 5: loaded fund, maybe something you paid a commission four years ago. 325 00:15:53,640 --> 00:15:55,800 Speaker 5: Sometimes they can be upwards of three percent. There are 326 00:15:55,840 --> 00:15:58,520 Speaker 5: things out there called c shares that don't have any 327 00:15:59,040 --> 00:16:00,920 Speaker 5: loads on the front end, but they spread it out 328 00:16:00,960 --> 00:16:03,720 Speaker 5: over time and you'll see that in those really. 329 00:16:03,560 --> 00:16:04,640 Speaker 1: High expense ratios. 330 00:16:04,800 --> 00:16:07,000 Speaker 5: That's one of the reasons that we use exchange traded 331 00:16:07,000 --> 00:16:09,400 Speaker 5: funds because we can build a portfolio and keep those 332 00:16:09,440 --> 00:16:12,520 Speaker 5: internal expenses between a tenth and maybe two tenths of 333 00:16:12,520 --> 00:16:16,040 Speaker 5: a percent across the board. Sometimes we use active managers 334 00:16:16,040 --> 00:16:19,000 Speaker 5: as well. There is value at some for very unique 335 00:16:19,120 --> 00:16:21,720 Speaker 5: kind of niche positions we need to take, but most 336 00:16:21,720 --> 00:16:25,560 Speaker 5: of the time we're focused on index based risk tolerance 337 00:16:26,040 --> 00:16:27,840 Speaker 5: type arrangements. Then we're going to be able to control 338 00:16:27,880 --> 00:16:29,880 Speaker 5: the expenses a lot more So. If you want to 339 00:16:29,880 --> 00:16:32,720 Speaker 5: make sure that you understand where these fees are and 340 00:16:32,760 --> 00:16:35,160 Speaker 5: if there are commissions involved, well just make sure you 341 00:16:35,800 --> 00:16:37,720 Speaker 5: understand that your advisor is only getting paid when you 342 00:16:37,840 --> 00:16:40,040 Speaker 5: when you tell him or her yes, buy that thing 343 00:16:40,120 --> 00:16:42,880 Speaker 5: or sell that other thing that's commission based as opposed 344 00:16:42,880 --> 00:16:45,640 Speaker 5: to something that has a much more comprehensive approach. Where 345 00:16:45,680 --> 00:16:48,120 Speaker 5: you've got, as Bob mentioned, all the tax planning and 346 00:16:48,200 --> 00:16:50,080 Speaker 5: estate planning advice and so forth. 347 00:16:50,680 --> 00:16:52,800 Speaker 4: And Brian, what we tend to find out, you know, 348 00:16:52,960 --> 00:16:54,920 Speaker 4: run into all the time when we have new folks 349 00:16:55,000 --> 00:16:58,000 Speaker 4: come in and talk to us, is people have these 350 00:16:58,120 --> 00:17:01,320 Speaker 4: investment advisors that they've worked with for years and years 351 00:17:01,360 --> 00:17:04,960 Speaker 4: and years, and we find that people are in these 352 00:17:05,040 --> 00:17:09,320 Speaker 4: more expensive products that the investment advisor is still getting 353 00:17:09,320 --> 00:17:13,119 Speaker 4: paid and paid rather handsomely, but they're not doing the 354 00:17:13,119 --> 00:17:17,760 Speaker 4: whole job. They're not providing all those comprehensive services coordinated 355 00:17:17,800 --> 00:17:20,879 Speaker 4: together like I talked about before. And let's face it, 356 00:17:20,920 --> 00:17:22,640 Speaker 4: at the end of the day, a fee is really 357 00:17:22,640 --> 00:17:25,600 Speaker 4: only a fee in the absence of value. And the 358 00:17:25,640 --> 00:17:27,680 Speaker 4: point we're trying to make here is make sure you're 359 00:17:27,720 --> 00:17:31,160 Speaker 4: getting true value for what you're paying for. In other words, 360 00:17:31,200 --> 00:17:34,280 Speaker 4: once your portfolio gets to a certain level, you should 361 00:17:34,320 --> 00:17:37,760 Speaker 4: be asking am I getting access to lower cost institutional 362 00:17:37,880 --> 00:17:42,920 Speaker 4: shares or ETFs? Should I be direct in indexing my portfolio? 363 00:17:43,560 --> 00:17:47,680 Speaker 4: Is there any kind of active, proactive tax management, tax 364 00:17:47,720 --> 00:17:50,600 Speaker 4: loss harvesting going on? And then there are there? Just 365 00:17:50,960 --> 00:17:56,199 Speaker 4: are there some smarter, more efficient solutions for my particular 366 00:17:56,320 --> 00:17:59,840 Speaker 4: level of worth? And what we find out all the time, Brian, 367 00:17:59,880 --> 00:18:02,080 Speaker 4: and as you like to say, that's why we all 368 00:18:02,119 --> 00:18:05,639 Speaker 4: have jobs over here. When we can actually get somebody 369 00:18:05,640 --> 00:18:07,840 Speaker 4: in here and take a look under the hood and 370 00:18:07,880 --> 00:18:11,720 Speaker 4: see what's going on. Oftentimes we can add value for 371 00:18:11,760 --> 00:18:15,640 Speaker 4: a client, and so do other fiduciary advisors, by the way, 372 00:18:15,840 --> 00:18:19,160 Speaker 4: add a lot of value for clients and actually lower 373 00:18:19,240 --> 00:18:22,199 Speaker 4: their cost of doing business, not raise it. You know, 374 00:18:22,240 --> 00:18:24,679 Speaker 4: it's just a reminder to take a look at what 375 00:18:24,720 --> 00:18:27,640 Speaker 4: you've got here and make sure you're getting true value 376 00:18:28,119 --> 00:18:29,960 Speaker 4: out of your current relationships. 377 00:18:30,000 --> 00:18:32,600 Speaker 5: So, Bob, let's take take a quick hypothetical example. And 378 00:18:32,600 --> 00:18:34,520 Speaker 5: this is not that hypothetical because I know the people 379 00:18:34,560 --> 00:18:37,560 Speaker 5: behind it. So this is a couple, both of them retired, 380 00:18:37,560 --> 00:18:40,119 Speaker 5: had about two and a half million dollars saved of 381 00:18:40,160 --> 00:18:42,640 Speaker 5: for excuse me. Portfolio was with a well known national 382 00:18:42,640 --> 00:18:46,440 Speaker 5: brokerage firm. This wasn't a commission based type of arrangement. 383 00:18:46,440 --> 00:18:48,560 Speaker 5: This is everything looks fee based. They're paying a quarterly 384 00:18:48,560 --> 00:18:50,640 Speaker 5: fee that's a percentage of the assets. That's pretty common 385 00:18:50,680 --> 00:18:53,399 Speaker 5: these days in a fiduciary type of relationship. But when 386 00:18:53,440 --> 00:18:55,679 Speaker 5: they peel back those layers, they find out that almost 387 00:18:55,720 --> 00:18:59,560 Speaker 5: all those investments are in actively managed mutual funds, which, 388 00:19:00,080 --> 00:19:02,000 Speaker 5: as we all know most people have heard this drum 389 00:19:02,040 --> 00:19:06,040 Speaker 5: beat before, only about you know, fewer than nine out 390 00:19:06,080 --> 00:19:10,160 Speaker 5: of ten actively managed mutual funds actually outperform the indexes. 391 00:19:10,200 --> 00:19:13,000 Speaker 5: You know, oftentimes you're paying something there's not getting. 392 00:19:12,760 --> 00:19:14,720 Speaker 4: Much fewer than one out of ten, right, Yeah, I 393 00:19:14,720 --> 00:19:16,159 Speaker 4: said that backwards anyway. 394 00:19:16,160 --> 00:19:18,520 Speaker 5: I active management doesn't really help all that much in 395 00:19:18,560 --> 00:19:19,000 Speaker 5: the long run. 396 00:19:19,119 --> 00:19:19,840 Speaker 1: But here's the big thing. 397 00:19:19,920 --> 00:19:22,199 Speaker 5: This particular case I'm thinking of, there wasn't even an 398 00:19:22,240 --> 00:19:23,000 Speaker 5: advisor behind it. 399 00:19:23,119 --> 00:19:24,480 Speaker 1: This was a national brokerage firm. 400 00:19:24,480 --> 00:19:27,400 Speaker 5: The advisor had left, so when we looked at their statements, 401 00:19:27,400 --> 00:19:30,080 Speaker 5: it said house account. So there's there's a fee being 402 00:19:30,200 --> 00:19:32,239 Speaker 5: charged and there's no advisor behind it. We know that 403 00:19:32,240 --> 00:19:35,040 Speaker 5: the robots are running of the investments, but nobody's really 404 00:19:35,080 --> 00:19:39,919 Speaker 5: looking at those extended the estate planning directions, the tax planning, 405 00:19:39,960 --> 00:19:42,000 Speaker 5: all those other kinds of things, because there just wasn't 406 00:19:42,000 --> 00:19:44,760 Speaker 5: a human being behind it. But that national brokerage firm, 407 00:19:44,800 --> 00:19:47,120 Speaker 5: the big company you've heard of, was more than happy 408 00:19:47,200 --> 00:19:49,000 Speaker 5: to continue to collect the fees and not pick up 409 00:19:49,040 --> 00:19:52,320 Speaker 5: the Phone's that happens more often than not where if 410 00:19:52,440 --> 00:19:54,600 Speaker 5: you've got a big, faceless firm like that, sometimes the 411 00:19:54,640 --> 00:19:57,320 Speaker 5: people just disappear and all of a sudden, you don't 412 00:19:57,359 --> 00:20:00,560 Speaker 5: have anybody. Really it doesn't mean they're they're abandoning the investments, 413 00:20:00,600 --> 00:20:03,160 Speaker 5: but nobody is having that proactive discussion with you about 414 00:20:03,160 --> 00:20:06,679 Speaker 5: your specific situation, so very common type of the thing 415 00:20:06,680 --> 00:20:08,600 Speaker 5: that we run across, and that's often what drives people 416 00:20:08,600 --> 00:20:10,040 Speaker 5: in the door here to have a different opinion. 417 00:20:10,680 --> 00:20:11,760 Speaker 1: Here's the all Worth advice. 418 00:20:11,840 --> 00:20:15,920 Speaker 4: Good advice is worth paying for, but hidden fees that's 419 00:20:15,960 --> 00:20:19,480 Speaker 4: money you never see again and just wasted money. Coming 420 00:20:19,560 --> 00:20:23,760 Speaker 4: up next is Cincinnati's housing market cooling down or heating 421 00:20:23,800 --> 00:20:24,280 Speaker 4: back up. 422 00:20:24,600 --> 00:20:26,800 Speaker 1: Our real estate expert weighs in. Next. 423 00:20:26,840 --> 00:20:29,520 Speaker 4: You're listening to Simply Money, presented by all Worth Financial 424 00:20:29,560 --> 00:20:32,480 Speaker 4: on fifty five KRC, the talk station. 425 00:20:33,200 --> 00:20:34,840 Speaker 1: The Shumer Shutdown, Trump Shure. 426 00:20:39,040 --> 00:20:41,639 Speaker 4: You're listening to Simply Money presented by Allworth Financial on 427 00:20:41,760 --> 00:20:45,560 Speaker 4: Bob Sponseller along with Brian James, joined tonight by our 428 00:20:45,680 --> 00:20:50,720 Speaker 4: real estate expert, Michelle Sloan, owner of Remax Time. Michelle, 429 00:20:50,800 --> 00:20:54,040 Speaker 4: as always, thanks for making time for us tonight and 430 00:20:54,720 --> 00:20:57,679 Speaker 4: update us on what's going on with the housing market 431 00:20:57,720 --> 00:21:01,119 Speaker 4: here as we enter and get in the month of October, 432 00:21:01,320 --> 00:21:02,520 Speaker 4: the fourth quarter of the year. 433 00:21:03,080 --> 00:21:05,199 Speaker 1: And then I know, Brian and I are dying to know. 434 00:21:05,359 --> 00:21:08,520 Speaker 4: You know, is this government shutdown or the fear of 435 00:21:08,560 --> 00:21:12,560 Speaker 4: a longer term shutdown? Is that making people freeze up? 436 00:21:12,720 --> 00:21:15,480 Speaker 4: Is that slowing things down at all? Or are things 437 00:21:15,600 --> 00:21:17,960 Speaker 4: just moving forward, you know, unabated here. 438 00:21:19,440 --> 00:21:22,080 Speaker 6: Okay, well there's a lot to unpack, and so we've 439 00:21:22,080 --> 00:21:24,600 Speaker 6: got a lot to cover. That's why we need to 440 00:21:24,640 --> 00:21:29,360 Speaker 6: at a minute. Well, I appreciate that very much. Well, 441 00:21:29,400 --> 00:21:34,399 Speaker 6: today I can say the interest rates are they're doing 442 00:21:34,800 --> 00:21:39,080 Speaker 6: well there, They're going down a little bit, certainly so 443 00:21:39,160 --> 00:21:42,359 Speaker 6: on a thirty year fixed strate mortgage on average, and 444 00:21:42,359 --> 00:21:45,479 Speaker 6: then this always depends on your own credit, who you 445 00:21:45,560 --> 00:21:48,320 Speaker 6: go to, which banker or lender that you use. But 446 00:21:48,359 --> 00:21:50,960 Speaker 6: the thirty year fixed rate is six point two eight 447 00:21:51,080 --> 00:21:55,879 Speaker 6: on average nationally, so we are below that six and 448 00:21:55,880 --> 00:21:59,280 Speaker 6: a half percent, which is really good. The fifteen year 449 00:21:59,359 --> 00:22:02,720 Speaker 6: mortgage rate is on average about five and a half percent, 450 00:22:03,359 --> 00:22:06,800 Speaker 6: so we're seeing the less than seven percent. You know, 451 00:22:07,000 --> 00:22:10,720 Speaker 6: I've always said if we get in the six percent range, 452 00:22:10,760 --> 00:22:14,600 Speaker 6: I think that's the magic number, and we're there right now. 453 00:22:14,640 --> 00:22:19,080 Speaker 6: But seasonally, we have to understand that there's not a 454 00:22:19,119 --> 00:22:22,520 Speaker 6: lot of people wanting to move unless you have a 455 00:22:22,680 --> 00:22:26,200 Speaker 6: real reason to do so. And that real reason maybe 456 00:22:27,560 --> 00:22:31,520 Speaker 6: a job move, or you know, your family is growing, 457 00:22:31,680 --> 00:22:34,199 Speaker 6: or whatever reason that you might have to want to 458 00:22:34,240 --> 00:22:36,920 Speaker 6: make a move. You know, this time of year, most 459 00:22:36,920 --> 00:22:40,320 Speaker 6: people aren't thinking about buying homes. But I'm going to 460 00:22:40,400 --> 00:22:43,760 Speaker 6: say that this is the best time to buy a 461 00:22:43,800 --> 00:22:47,920 Speaker 6: home if you're in the market, because there are opportunities available. 462 00:22:48,600 --> 00:22:51,120 Speaker 5: Hey, Michelle, this is now that we're in this declining 463 00:22:51,240 --> 00:22:53,639 Speaker 5: rate environment again, which we hadn't seen in a while, 464 00:22:53,720 --> 00:22:57,399 Speaker 5: at least not consistently. I'm reminded of you know, sometime 465 00:22:57,440 --> 00:22:59,360 Speaker 5: in the past, I don't know, fifteen, maybe twenty years 466 00:22:59,440 --> 00:23:01,800 Speaker 5: going back, that are there were a lot of companies 467 00:23:01,800 --> 00:23:05,200 Speaker 5: out there pushing declining rate mortgages. In other words, when 468 00:23:05,240 --> 00:23:08,200 Speaker 5: the when mortgage rates would drop a certain amount, your 469 00:23:08,280 --> 00:23:11,159 Speaker 5: rate on your existing mortgage would lower as well. I 470 00:23:11,200 --> 00:23:13,240 Speaker 5: feel like I haven't heard about those in a very 471 00:23:13,240 --> 00:23:15,080 Speaker 5: long time, and maybe we don't have enough momentum for 472 00:23:15,119 --> 00:23:17,760 Speaker 5: financial companies to want to put that stuff together. But 473 00:23:17,840 --> 00:23:19,560 Speaker 5: have you heard about that? Do you see do you 474 00:23:19,600 --> 00:23:21,720 Speaker 5: ever see clients coming with that type of mortgage in 475 00:23:21,720 --> 00:23:22,000 Speaker 5: the mix? 476 00:23:23,640 --> 00:23:28,040 Speaker 6: You know there are some refinancing going on as a result, 477 00:23:28,280 --> 00:23:32,119 Speaker 6: but you're right, it's not a big push at this point. 478 00:23:32,200 --> 00:23:35,200 Speaker 6: I think if we do get down to that six percent, 479 00:23:35,280 --> 00:23:39,960 Speaker 6: which I personally feel like is a benchmark, that then 480 00:23:40,000 --> 00:23:43,840 Speaker 6: you're going to see lenders really pushing, and usually it 481 00:23:43,920 --> 00:23:48,520 Speaker 6: only makes sense to refinance your mortgage. And usually that's 482 00:23:48,560 --> 00:23:51,119 Speaker 6: not an automated thing. That's not just going to happen. 483 00:23:51,720 --> 00:23:55,040 Speaker 6: Most mortgage companies, in your lender, they're not just going 484 00:23:55,080 --> 00:23:57,840 Speaker 6: to automatically say, hey, do you want to lower your 485 00:23:57,920 --> 00:24:01,199 Speaker 6: rate because the rates are going down, You as a 486 00:24:01,240 --> 00:24:05,439 Speaker 6: consumer need to pay attention. And so that's where you 487 00:24:05,480 --> 00:24:08,160 Speaker 6: know it's important to listen to a show like this 488 00:24:08,480 --> 00:24:10,679 Speaker 6: just to be able to see or talk to your 489 00:24:10,720 --> 00:24:14,359 Speaker 6: real estate agent, talk to your financial planner and look 490 00:24:14,400 --> 00:24:17,600 Speaker 6: at your rates. Don't just set it and forget it now. 491 00:24:17,640 --> 00:24:19,679 Speaker 6: We always talk in the stock market, right, it is 492 00:24:19,720 --> 00:24:24,359 Speaker 6: important for the most part to not be too quick 493 00:24:24,480 --> 00:24:29,240 Speaker 6: to make moves right, but in the in the mortgage business, 494 00:24:29,359 --> 00:24:32,840 Speaker 6: and you do need to know what you have so 495 00:24:32,880 --> 00:24:36,159 Speaker 6: that you can make the right decisions as you move forward. 496 00:24:37,400 --> 00:24:39,439 Speaker 4: All right, makes sense for sure, Hey, I know you 497 00:24:39,480 --> 00:24:42,000 Speaker 4: wanted to talk about a new survey out there. 498 00:24:42,160 --> 00:24:44,280 Speaker 1: I don't know where it's from. I know you do. 499 00:24:44,359 --> 00:24:46,200 Speaker 1: That suggests how'sing. 500 00:24:46,000 --> 00:24:49,720 Speaker 4: Costs right now or quote unquote unreasonable and that there's 501 00:24:49,760 --> 00:24:54,000 Speaker 4: one main culprit for the unreasonable unreasonableness. 502 00:24:54,400 --> 00:24:57,000 Speaker 1: What's going on with that? Survey and this does it 503 00:24:57,040 --> 00:24:59,000 Speaker 1: Does it hold water in your opinion? 504 00:25:01,320 --> 00:25:05,199 Speaker 6: Not really, well sort of. You know, everybody thinks and 505 00:25:05,320 --> 00:25:11,879 Speaker 6: has an opinion about realtors, investors, attorneys. It may not 506 00:25:12,000 --> 00:25:17,000 Speaker 6: all be positive. So, you know, a staggering ninety three 507 00:25:17,119 --> 00:25:22,359 Speaker 6: percent of Americans believe that housing costs are unreasonable quote 508 00:25:22,400 --> 00:25:26,800 Speaker 6: unquote unreasonable, and a lot of the people think that 509 00:25:26,920 --> 00:25:32,840 Speaker 6: it's because of investors, and many people that have been 510 00:25:32,880 --> 00:25:37,159 Speaker 6: surveyed in this latest affordability survey. When it comes to 511 00:25:37,200 --> 00:25:42,160 Speaker 6: the root cause of unaffordability, respondents pointed their fingers at 512 00:25:42,240 --> 00:25:45,760 Speaker 6: investors who have This is in the thoughts and in 513 00:25:45,800 --> 00:25:49,200 Speaker 6: the minds of the people who responded to this survey 514 00:25:49,800 --> 00:25:55,400 Speaker 6: have significantly increased their portfolio of low cost starter homes 515 00:25:55,480 --> 00:25:59,560 Speaker 6: over the past years, basically pricing out all of the 516 00:25:59,640 --> 00:26:03,280 Speaker 6: regular people who want to buy homes, the actual home buyers. 517 00:26:03,920 --> 00:26:07,680 Speaker 6: And you know that the interesting part of that thought 518 00:26:07,800 --> 00:26:14,159 Speaker 6: process is it's not really true. It's definitely popular to 519 00:26:14,240 --> 00:26:17,919 Speaker 6: blame investors with the housing problems that we've had, or 520 00:26:17,920 --> 00:26:22,680 Speaker 6: the economics of the higher prices, but the fundamental driver 521 00:26:22,800 --> 00:26:27,280 Speaker 6: of housing costs is the shortage of homes available. It's 522 00:26:27,359 --> 00:26:29,679 Speaker 6: driven by the fact that there's a mismatch between the 523 00:26:29,720 --> 00:26:33,920 Speaker 6: number of households and the actual size of our housing stocks. 524 00:26:33,920 --> 00:26:37,280 Speaker 6: So it's what is it? It comes down to this 525 00:26:37,400 --> 00:26:41,840 Speaker 6: simple supply and demand situation. More than investors. It's easy 526 00:26:41,880 --> 00:26:45,560 Speaker 6: and fun to blame investors for all of our woes. 527 00:26:45,880 --> 00:26:49,880 Speaker 6: The other person or a group of people that were 528 00:26:49,920 --> 00:26:56,560 Speaker 6: bashed in this survey are politicians. And that's not surprising either. 529 00:26:56,760 --> 00:27:02,119 Speaker 6: Politicians are being blamed for afford ability housing crisis. So 530 00:27:02,720 --> 00:27:05,959 Speaker 6: if we move forward with that line of thinking of 531 00:27:06,000 --> 00:27:11,000 Speaker 6: the blaming politicians, I want to just say a brief 532 00:27:11,000 --> 00:27:15,080 Speaker 6: thing about the government shutdown. Yeah, you know, I think 533 00:27:15,119 --> 00:27:18,440 Speaker 6: it continues to contribute to the lack of consumer confidence 534 00:27:18,920 --> 00:27:23,120 Speaker 6: in the market and in the government itself, So buyers 535 00:27:23,160 --> 00:27:27,440 Speaker 6: and sellers, the impact so far at this point has 536 00:27:27,480 --> 00:27:32,800 Speaker 6: been fairly limited. Maybe adding a few extra days to transactions, 537 00:27:33,320 --> 00:27:36,720 Speaker 6: but for the most part, we're still chugging along. Now. 538 00:27:36,800 --> 00:27:41,120 Speaker 6: If you know, we always worry about what if. I'm 539 00:27:41,160 --> 00:27:47,080 Speaker 6: only worried about today, because we could worry ourselves to 540 00:27:47,280 --> 00:27:50,960 Speaker 6: death if we, you know, look at all of the scenarios. 541 00:27:51,000 --> 00:27:54,439 Speaker 6: So one day at a time, and in the world 542 00:27:54,440 --> 00:27:58,480 Speaker 6: of real estate, there are opportunities and that's the one 543 00:27:58,520 --> 00:28:02,240 Speaker 6: thing that I would love to us to everybody who's 544 00:28:02,280 --> 00:28:06,639 Speaker 6: listening tonight is in the last seven days in the 545 00:28:06,720 --> 00:28:10,919 Speaker 6: Cincinnati market, there have been five hundred price reductions. What 546 00:28:10,960 --> 00:28:14,240 Speaker 6: does that mean? All homes have been on the market 547 00:28:14,240 --> 00:28:19,200 Speaker 6: a little longer and sellers are getting a little uncomfortable. 548 00:28:19,720 --> 00:28:24,760 Speaker 6: And when sellers get uncomfortable, they are looking to negotiate. 549 00:28:25,240 --> 00:28:27,760 Speaker 1: Yep, So get out there, fortunity to get home and 550 00:28:27,800 --> 00:28:29,280 Speaker 1: make an offer. Thanks Rashe. 551 00:28:29,480 --> 00:28:32,160 Speaker 4: You're listening to Simply Money, presented by all Worth Financial 552 00:28:32,160 --> 00:28:34,879 Speaker 4: on fifty five KRC, the Talk Station. 553 00:28:35,320 --> 00:28:36,480 Speaker 1: Who wants to be rich? 554 00:28:36,800 --> 00:28:39,200 Speaker 2: We call them every day millionaires. 555 00:28:38,480 --> 00:28:41,240 Speaker 1: Every day listen to Dave Ramsey. 556 00:28:41,480 --> 00:28:44,680 Speaker 2: They typically say one of the things that turned their 557 00:28:44,720 --> 00:28:48,520 Speaker 2: life around was when they started looking at purchasing something rich. 558 00:28:48,600 --> 00:28:53,040 Speaker 2: People ask how much broke? People and I've been both 559 00:28:53,080 --> 00:28:57,840 Speaker 2: brother okay broke? People ask how much down and how 560 00:28:57,920 --> 00:28:58,480 Speaker 2: much a month? 561 00:28:58,600 --> 00:29:01,560 Speaker 1: Tonight at seven oh six, I start asking how much 562 00:29:01,800 --> 00:29:06,480 Speaker 1: On fifty five KRS the Talkstation, are welcome to here. 563 00:29:06,560 --> 00:29:08,560 Speaker 1: Why do we keep letting thousands of people come over 564 00:29:08,600 --> 00:29:11,360 Speaker 1: and do nothing about it? My family's safety is at risk. 565 00:29:11,560 --> 00:29:14,440 Speaker 1: Fifty five KRC, The Talk Station. 566 00:29:18,440 --> 00:29:21,200 Speaker 4: You're listening to Simplely Money, presented by all Worth Financial 567 00:29:21,320 --> 00:29:24,520 Speaker 4: umpop sponseller along with Brian James. Do you have a 568 00:29:24,520 --> 00:29:26,719 Speaker 4: financial question you'd like for us to answer. There's a 569 00:29:26,760 --> 00:29:28,680 Speaker 4: red button you can click while you're listening to the 570 00:29:28,720 --> 00:29:32,200 Speaker 4: show right on the iHeart app. Simply record your question 571 00:29:32,360 --> 00:29:36,000 Speaker 4: that will come straight to us. All right, Brian, Cindy 572 00:29:36,120 --> 00:29:38,760 Speaker 4: and Kenwood leads us off tonight. She says, we've been 573 00:29:38,800 --> 00:29:42,840 Speaker 4: thinking about retiring early, that health insurance costs are a 574 00:29:42,960 --> 00:29:46,680 Speaker 4: huge unknown. How do you abridge the gap until Medicare 575 00:29:47,160 --> 00:29:49,160 Speaker 4: without draining savings? 576 00:29:49,520 --> 00:29:51,080 Speaker 1: Now, this doesn't mean you can't retire. 577 00:29:51,080 --> 00:29:52,680 Speaker 5: A lot of people get hung up on the idea 578 00:29:52,720 --> 00:29:54,880 Speaker 5: that I have to wait until sixty five. I must 579 00:29:54,920 --> 00:29:57,920 Speaker 5: must must wait until sixty five. So my healthcare coverage 580 00:29:57,920 --> 00:30:00,280 Speaker 5: can be as cheap as possible by using Medicare. And 581 00:30:00,320 --> 00:30:02,800 Speaker 5: that's a good plan, but it's not the only plan. 582 00:30:02,840 --> 00:30:05,160 Speaker 5: There are ways to do this, and that's using the 583 00:30:05,240 --> 00:30:08,920 Speaker 5: Affordable Care Act marketplace. So let's let's talk about first 584 00:30:09,040 --> 00:30:10,720 Speaker 5: what does coverage really cost necessarily? 585 00:30:10,800 --> 00:30:12,240 Speaker 1: So for a sixty year old copy. 586 00:30:12,160 --> 00:30:15,200 Speaker 5: A couple in Ohio, Indiana, Kentucky, that's going to average 587 00:30:15,200 --> 00:30:18,000 Speaker 5: about fourteen hundred to eighteen hundred a month before subsidies, 588 00:30:18,040 --> 00:30:20,480 Speaker 5: or maybe seventeen to twenty two thousand dollars per year. 589 00:30:21,160 --> 00:30:24,760 Speaker 5: Costs will vary sharply by income. Subsidies phase out once 590 00:30:24,760 --> 00:30:28,320 Speaker 5: you're modified. Adjusted gross income exceeds about seventy eight thousand 591 00:30:28,320 --> 00:30:31,479 Speaker 5: dollars for a married couple. So just understand what your 592 00:30:31,520 --> 00:30:33,200 Speaker 5: options are and you can go to the go to 593 00:30:33,240 --> 00:30:34,920 Speaker 5: your your whatever state you're in. I don't think we 594 00:30:35,000 --> 00:30:38,400 Speaker 5: knew that one, but and take a look at what 595 00:30:38,440 --> 00:30:40,640 Speaker 5: the what the options are out there. And another option 596 00:30:40,720 --> 00:30:42,680 Speaker 5: too is look at your employer. Your employer may offer 597 00:30:42,800 --> 00:30:45,840 Speaker 5: COBRA coverage. For those who don't know, Cobra can extend 598 00:30:45,840 --> 00:30:48,680 Speaker 5: your current government plan whatever you're on right now for 599 00:30:48,760 --> 00:30:50,960 Speaker 5: up to eighteen maybe thirty six months, most off in 600 00:30:51,040 --> 00:30:54,920 Speaker 5: eighteen there will be you're paying both halves of the premium, 601 00:30:54,960 --> 00:30:57,400 Speaker 5: so you still get the benefit of a lower overall premium, 602 00:30:57,400 --> 00:30:58,960 Speaker 5: but now you have to pay the portion that your 603 00:30:58,960 --> 00:31:01,520 Speaker 5: employer was paying in the past. So that can be 604 00:31:01,560 --> 00:31:04,280 Speaker 5: a really good option for people wanting to retire earlier 605 00:31:04,320 --> 00:31:06,840 Speaker 5: than sixty five. So let's move on to Don in 606 00:31:06,840 --> 00:31:08,920 Speaker 5: Blue Ash, who has a question for Bob Don says, 607 00:31:08,920 --> 00:31:11,000 Speaker 5: we've built a comfortable nest egg, but we're not sure 608 00:31:11,000 --> 00:31:13,400 Speaker 5: how to generate steady income out of it without losing 609 00:31:13,440 --> 00:31:14,240 Speaker 5: that growth potential. 610 00:31:14,320 --> 00:31:15,680 Speaker 1: So how do we find the right balance? 611 00:31:15,720 --> 00:31:19,480 Speaker 4: Bob well Don, I always like to answer this question. 612 00:31:19,600 --> 00:31:21,760 Speaker 4: You know, obviously I don't know your whole situation. I 613 00:31:21,800 --> 00:31:23,560 Speaker 4: don't know all the details, so I'm going to speak 614 00:31:23,560 --> 00:31:26,120 Speaker 4: in generalities here, but you know, in general, I like 615 00:31:26,160 --> 00:31:28,840 Speaker 4: to answer this question in two ways. One, you got 616 00:31:28,880 --> 00:31:31,200 Speaker 4: to sit down and have a financial plan built. 617 00:31:30,880 --> 00:31:33,080 Speaker 1: For you by a good fiduciary advisor. 618 00:31:33,120 --> 00:31:35,520 Speaker 4: In other words, you got to look at your income sources, 619 00:31:35,800 --> 00:31:40,200 Speaker 4: social security, your pile of money, and then more most importantly, 620 00:31:40,320 --> 00:31:42,800 Speaker 4: what you plan on spending, and you got to make 621 00:31:42,840 --> 00:31:46,480 Speaker 4: sure the math adds up and so there usually there 622 00:31:46,600 --> 00:31:49,280 Speaker 4: is a level of risk and level of growth that 623 00:31:49,320 --> 00:31:52,320 Speaker 4: we've got to have from a portfolio in order to 624 00:31:52,360 --> 00:31:54,520 Speaker 4: have a high probability. 625 00:31:53,800 --> 00:31:56,040 Speaker 1: Of enabling you to meet your long term goals. That's 626 00:31:56,080 --> 00:31:56,719 Speaker 1: number one. 627 00:31:57,120 --> 00:31:59,440 Speaker 4: Then number two, we got to take your temperature as 628 00:31:59,480 --> 00:32:02,800 Speaker 4: far as how much risk and volatility you know you're 629 00:32:02,840 --> 00:32:06,719 Speaker 4: comfortable taking with your portfolio. So hopefully, when we can 630 00:32:06,760 --> 00:32:10,920 Speaker 4: answer those two questions, we can arrive at a proper 631 00:32:10,960 --> 00:32:15,960 Speaker 4: asset allocation between bonds stocks, maybe some buffer ETFs or 632 00:32:16,080 --> 00:32:19,200 Speaker 4: you know, risk control type strategies where we can get 633 00:32:19,400 --> 00:32:22,920 Speaker 4: enough growth in your portfolio to meet the financial goal 634 00:32:23,080 --> 00:32:26,520 Speaker 4: and also enable you to sleep at night so you 635 00:32:26,560 --> 00:32:30,040 Speaker 4: can actually enjoy your retirement rather than worry about money 636 00:32:30,080 --> 00:32:30,560 Speaker 4: every day. 637 00:32:30,840 --> 00:32:32,640 Speaker 1: Hope that helps Don all right? 638 00:32:32,720 --> 00:32:35,520 Speaker 4: Canon Fort Thomas says, we've got a second home that 639 00:32:35,560 --> 00:32:39,400 Speaker 4: we rarely use, Brian, should we sell it, rent it 640 00:32:39,840 --> 00:32:42,080 Speaker 4: or look for ways to fold it into our long 641 00:32:42,160 --> 00:32:43,160 Speaker 4: term financial plan? 642 00:32:43,640 --> 00:32:47,800 Speaker 5: Yeah, that can be Obviously, the owning a second property 643 00:32:47,840 --> 00:32:52,080 Speaker 5: requires resources, it requires time, and that obviously there are 644 00:32:52,120 --> 00:32:53,680 Speaker 5: benefits to it as well. But yeah, a lot of 645 00:32:53,680 --> 00:32:55,920 Speaker 5: people run into this eventual well what are we really 646 00:32:55,960 --> 00:32:57,480 Speaker 5: doing here? What do we want for the long term? 647 00:32:57,520 --> 00:33:01,120 Speaker 5: So and sometimes people can underestimate what those costs are 648 00:33:01,120 --> 00:33:04,440 Speaker 5: property taxes, insurance, maintenance, travel back. 649 00:33:04,280 --> 00:33:05,520 Speaker 1: And forth to it, and utilities. 650 00:33:05,600 --> 00:33:08,520 Speaker 5: That's often three four percent of the home's value every 651 00:33:08,520 --> 00:33:11,800 Speaker 5: single year. Never goes away, So it just depends on 652 00:33:12,160 --> 00:33:15,960 Speaker 5: what you're looking for. Renting it out, doing the airbnb 653 00:33:16,080 --> 00:33:18,280 Speaker 5: thing I think can be okay, but I wouldn't look 654 00:33:18,320 --> 00:33:20,280 Speaker 5: to net a whole lot of you might be able 655 00:33:20,280 --> 00:33:21,960 Speaker 5: to cover your cost, but if you're going to have 656 00:33:21,960 --> 00:33:25,640 Speaker 5: to have a property manager involved, those cost money somebody 657 00:33:25,720 --> 00:33:27,120 Speaker 5: can have come in and clean it, you're gonna have 658 00:33:27,120 --> 00:33:28,640 Speaker 5: to deal with unhappy people and. 659 00:33:28,600 --> 00:33:30,040 Speaker 1: Stuff that happens to it and so forth. 660 00:33:30,080 --> 00:33:33,080 Speaker 5: So I think the best bet is just to figure 661 00:33:33,080 --> 00:33:35,040 Speaker 5: out exactly what do you want in terms of your 662 00:33:35,400 --> 00:33:36,320 Speaker 5: overall travel goals. 663 00:33:36,360 --> 00:33:37,680 Speaker 1: If you're not using it anymore. 664 00:33:37,720 --> 00:33:39,640 Speaker 5: Another way to think about it is sell it and 665 00:33:39,680 --> 00:33:41,960 Speaker 5: then just use the proceeds as your travel budget. 666 00:33:42,000 --> 00:33:42,880 Speaker 1: Then go wherever you want. 667 00:33:43,080 --> 00:33:46,040 Speaker 5: Now you're no longer changed to a to one property. 668 00:33:46,040 --> 00:33:48,360 Speaker 5: And I have heard a lot of people recently expressing 669 00:33:48,440 --> 00:33:50,800 Speaker 5: frustration kind of being stuck with a property and now 670 00:33:50,840 --> 00:33:52,800 Speaker 5: the HOA fees are going up because there was yet 671 00:33:52,840 --> 00:33:55,760 Speaker 5: another hurricane and so forth, and people are just kind 672 00:33:55,760 --> 00:33:57,520 Speaker 5: of thinking a little bit differently about do I really 673 00:33:57,520 --> 00:33:59,720 Speaker 5: want to tie myself down to a property in a 674 00:33:59,720 --> 00:34:02,600 Speaker 5: town on somewhere that maybe I'll eventually get tired of, 675 00:34:03,080 --> 00:34:05,080 Speaker 5: but kind of be stuck with. So just be open 676 00:34:05,120 --> 00:34:07,719 Speaker 5: minded to different solutions out there. Depends on what your 677 00:34:07,720 --> 00:34:09,839 Speaker 5: family wants. So now we're going to go to Mike 678 00:34:09,920 --> 00:34:12,080 Speaker 5: and Hyde Park Mark Mike is starting to think about 679 00:34:12,120 --> 00:34:15,040 Speaker 5: gifting to the kids and not just later, you know, 680 00:34:15,080 --> 00:34:17,719 Speaker 5: after their death. They're wondering what's the smartest way to 681 00:34:17,760 --> 00:34:19,520 Speaker 5: transfer wealth during their lifetimes. 682 00:34:19,640 --> 00:34:23,080 Speaker 4: Bob Well, I think it's great that you're thinking about this, Mike, 683 00:34:23,120 --> 00:34:25,640 Speaker 4: because oftentimes, and I've talked about this many times on 684 00:34:25,719 --> 00:34:28,239 Speaker 4: the show. You know what I find with clients in 685 00:34:28,280 --> 00:34:31,799 Speaker 4: their adult kids, just starting out with families, and you know, 686 00:34:31,960 --> 00:34:38,239 Speaker 4: life's expensive these days, so oftentimes you provide much more 687 00:34:38,280 --> 00:34:41,920 Speaker 4: benefit to them now by helping them get through some 688 00:34:42,040 --> 00:34:45,640 Speaker 4: of these early stage life decisions like getting married, having 689 00:34:45,640 --> 00:34:48,359 Speaker 4: your first kid, getting into a home, all that kind 690 00:34:48,400 --> 00:34:51,480 Speaker 4: of stuff, versus just loading a pile of money on 691 00:34:51,600 --> 00:34:54,319 Speaker 4: them when they're in their seventies. You know, it does 692 00:34:54,320 --> 00:34:57,680 Speaker 4: a lot less good there. So I love the thought process. 693 00:34:57,719 --> 00:34:59,880 Speaker 4: How do you go about it? You run some different 694 00:35:00,040 --> 00:35:04,520 Speaker 4: scenarios in terms of different financial planning options, run different 695 00:35:04,640 --> 00:35:08,040 Speaker 4: gift strategies in terms of the dollar amounts and the timing, 696 00:35:08,560 --> 00:35:11,600 Speaker 4: and see if that all works without messing up your 697 00:35:11,960 --> 00:35:16,040 Speaker 4: long term viability of your plan. Once you've arrived at 698 00:35:16,040 --> 00:35:18,439 Speaker 4: the dollar amount, then it's time to look at how 699 00:35:18,440 --> 00:35:21,760 Speaker 4: do we do it? Which assets to give and in general, 700 00:35:22,080 --> 00:35:25,000 Speaker 4: we want to make sure that you aren't paying taxes 701 00:35:25,200 --> 00:35:28,720 Speaker 4: or high taxes in order to give money to your kids. 702 00:35:28,760 --> 00:35:32,520 Speaker 4: Oftentimes the kids are in a much lower tax bracket 703 00:35:32,560 --> 00:35:35,440 Speaker 4: than you are, so that's an opportunity to maybe look 704 00:35:35,480 --> 00:35:39,320 Speaker 4: at some of your appreciated stocks or appreciated mutual fund shares. 705 00:35:39,800 --> 00:35:43,200 Speaker 4: Oftentimes you can give those shares in kind to your kids, 706 00:35:43,760 --> 00:35:47,400 Speaker 4: have them sell them, and pay whatever capital gains taxes 707 00:35:47,760 --> 00:35:50,200 Speaker 4: need to be paid at a much lower rate and 708 00:35:50,280 --> 00:35:56,080 Speaker 4: sometimes even zero. So again, run the scenarios, figure out 709 00:35:56,080 --> 00:35:59,160 Speaker 4: the dollar amount that makes sense, and then look at 710 00:35:59,200 --> 00:36:03,439 Speaker 4: the most sufficient way to transfer assets, and I think 711 00:36:03,480 --> 00:36:05,840 Speaker 4: it'll be an everyone wins scenario. 712 00:36:06,280 --> 00:36:07,000 Speaker 1: Coming up next. 713 00:36:07,040 --> 00:36:10,160 Speaker 4: I've got my two cents on the actual benefits of 714 00:36:10,280 --> 00:36:13,000 Speaker 4: doing what we talked about earlier in the show. Today, 715 00:36:13,080 --> 00:36:17,960 Speaker 4: having a comprehensive look at your investment plan. You're listening 716 00:36:17,960 --> 00:36:20,480 Speaker 4: to Simply Money, presented by all Worth Financial on fifty 717 00:36:20,480 --> 00:36:22,720 Speaker 4: five KRC the talk station. 718 00:36:23,800 --> 00:36:26,360 Speaker 1: The brutal murder of Arena Zarotska. 719 00:36:27,040 --> 00:36:30,920 Speaker 6: She was slaughtered by a deranged monster. Chicago. 720 00:36:31,120 --> 00:36:33,840 Speaker 4: Stop the seven or eight murders every weekend. 721 00:36:34,040 --> 00:36:35,520 Speaker 6: There has to be a way where we can all 722 00:36:35,600 --> 00:36:37,680 Speaker 6: be compensated democrats. 723 00:36:37,680 --> 00:36:41,680 Speaker 1: I don't think about socialism, extraterrestrial technology. I don't know 724 00:36:41,920 --> 00:36:44,960 Speaker 1: what is true. Listen here, so this is happening. Know 725 00:36:45,200 --> 00:36:48,920 Speaker 1: everything everything you need to know to stay in the know. 726 00:36:48,920 --> 00:36:49,640 Speaker 2: Know the facts. 727 00:36:49,760 --> 00:36:54,719 Speaker 1: Fifty five krs the talk station fall is. 728 00:36:55,000 --> 00:36:56,800 Speaker 4: I am so worried that next month I have to 729 00:36:56,880 --> 00:36:59,719 Speaker 4: choose between groceries for my kids or gas for my car. 730 00:37:00,040 --> 00:37:03,440 Speaker 1: Talk about it here fifty five krc the talk station 731 00:37:07,200 --> 00:37:08,399 Speaker 1: you're listening to. Simply money. 732 00:37:08,440 --> 00:37:11,160 Speaker 4: I said about over financial on Bob Sponseller along with 733 00:37:11,200 --> 00:37:14,440 Speaker 4: Brian James. All right, Brian, we talked earlier in the 734 00:37:14,440 --> 00:37:17,680 Speaker 4: show tonight about this whole topic of fees and making 735 00:37:17,719 --> 00:37:20,920 Speaker 4: sure you know what you're paying in investment fees and 736 00:37:21,080 --> 00:37:24,000 Speaker 4: more importantly, know if you're getting any value from the 737 00:37:24,000 --> 00:37:26,960 Speaker 4: fees that you're paying. I wanted to share an actual 738 00:37:27,040 --> 00:37:30,440 Speaker 4: story from an actual client meeting I had yesterday on 739 00:37:30,480 --> 00:37:34,240 Speaker 4: this exact topic. This is a client that started working 740 00:37:34,280 --> 00:37:37,520 Speaker 4: with me a couple of years ago, and their situation 741 00:37:37,640 --> 00:37:40,280 Speaker 4: has changed quite a bit over the last few years. 742 00:37:41,800 --> 00:37:46,240 Speaker 4: One spouse worked in the education field, the other built 743 00:37:46,280 --> 00:37:50,160 Speaker 4: a very nice business that you know they were able 744 00:37:50,200 --> 00:37:53,640 Speaker 4: to sell for you know, in the area of ten 745 00:37:53,680 --> 00:37:56,440 Speaker 4: to eleven million dollars. So when that business sale happened 746 00:37:56,440 --> 00:38:00,440 Speaker 4: a few years ago, life changed for them dramatically and 747 00:38:00,560 --> 00:38:04,240 Speaker 4: with it their financial planning needs. So you fast forward 748 00:38:04,280 --> 00:38:07,040 Speaker 4: to our meeting yesterday. You know, we've been working with 749 00:38:07,120 --> 00:38:10,120 Speaker 4: the vast majority of their assets now for a couple 750 00:38:10,120 --> 00:38:14,240 Speaker 4: of years and things are working well, but there's still 751 00:38:14,320 --> 00:38:19,000 Speaker 4: a couple variable annuities sitting out there that they had 752 00:38:19,040 --> 00:38:21,840 Speaker 4: not yet shared with me about. I had not seen 753 00:38:21,880 --> 00:38:24,040 Speaker 4: the statements, and I asked them, I said, let's take 754 00:38:24,040 --> 00:38:26,719 Speaker 4: a look at those and do exactly what we just 755 00:38:26,760 --> 00:38:29,320 Speaker 4: talked about earlier on this show. Look at the fees 756 00:38:29,400 --> 00:38:33,680 Speaker 4: and expenses that you're paying for these, and let's just 757 00:38:33,719 --> 00:38:36,799 Speaker 4: compare and contrast what we could do elsewhere in your portfolio. 758 00:38:37,440 --> 00:38:41,440 Speaker 4: Lo and behold, Brian. These clients are very risk averse. 759 00:38:41,920 --> 00:38:43,840 Speaker 4: You know, they only want to be ten to twenty 760 00:38:43,880 --> 00:38:47,040 Speaker 4: percent invested in the stock market. When I looked at 761 00:38:47,040 --> 00:38:51,480 Speaker 4: those actual annuity statements, ninety three percent invested in the 762 00:38:51,520 --> 00:38:56,040 Speaker 4: stock market. So timely conversation yesterday, because as we all know, 763 00:38:56,200 --> 00:38:59,520 Speaker 4: the market is at all time highs. They were relieved 764 00:38:59,560 --> 00:39:01,080 Speaker 4: to know that we were going to be able to 765 00:39:01,080 --> 00:39:04,960 Speaker 4: get those annuity assets transferred into an IRA and get 766 00:39:04,960 --> 00:39:07,640 Speaker 4: it back in line with their overall risk tolerance. And 767 00:39:07,680 --> 00:39:11,319 Speaker 4: by the way, they were paying almost three times the 768 00:39:11,360 --> 00:39:15,200 Speaker 4: amount in annual fees on those accounts than what we're 769 00:39:15,239 --> 00:39:17,520 Speaker 4: going to be having them pay as part of their 770 00:39:18,160 --> 00:39:23,239 Speaker 4: properly coordinated financial plan driven portfolio here. So it was 771 00:39:23,280 --> 00:39:26,719 Speaker 4: a great story. It's just, you know, it is a 772 00:39:26,719 --> 00:39:28,600 Speaker 4: percentage of their total assets. 773 00:39:28,719 --> 00:39:29,560 Speaker 1: It wasn't that. 774 00:39:29,640 --> 00:39:32,120 Speaker 4: Big of a deal, but it was a big deal 775 00:39:32,160 --> 00:39:35,640 Speaker 4: to them, in particular because they had no idea that 776 00:39:35,719 --> 00:39:38,040 Speaker 4: these things were almost one hundred percent in stocks and 777 00:39:38,080 --> 00:39:41,040 Speaker 4: they were. They couldn't run to the phone quickly enough 778 00:39:41,440 --> 00:39:46,120 Speaker 4: and call that annuity provider and get those assets repositioned accordingly. 779 00:39:46,520 --> 00:39:49,720 Speaker 4: I'm sure you have meetings like this all the time yourself, Brian. 780 00:39:49,840 --> 00:39:52,880 Speaker 5: Yeah, And again this isn't necessarily based on annuities, and 781 00:39:52,920 --> 00:39:54,759 Speaker 5: they're not our favorite tools out there, but there are tools, 782 00:39:54,760 --> 00:39:56,879 Speaker 5: and they serve purposes. This is really more about who 783 00:39:56,920 --> 00:39:59,319 Speaker 5: was behind this, because nobody from that company was having 784 00:39:59,360 --> 00:40:01,920 Speaker 5: a conversation with those clients to say, hey, this is 785 00:40:01,920 --> 00:40:04,320 Speaker 5: what this currently looks like. What are your overall goals? 786 00:40:04,600 --> 00:40:06,400 Speaker 5: What do you want out of all of this, and 787 00:40:06,440 --> 00:40:08,239 Speaker 5: nobody threw a flag to say, hey, this does not 788 00:40:08,400 --> 00:40:10,759 Speaker 5: match what they say they're looking for, and that's that's 789 00:40:10,960 --> 00:40:13,359 Speaker 5: how they ended up in that situation. But there's nothing 790 00:40:13,400 --> 00:40:17,160 Speaker 5: would have stopped somebody there from recognizing that and changing 791 00:40:17,200 --> 00:40:19,560 Speaker 5: the allocation right where it stood. However, that didn't happen, 792 00:40:19,560 --> 00:40:21,560 Speaker 5: and that's that, unfortunately, happens more often than not. 793 00:40:22,440 --> 00:40:23,279 Speaker 1: No, I agree with you. 794 00:40:23,360 --> 00:40:26,800 Speaker 4: This was not meant to be an annuity bashing segment 795 00:40:26,840 --> 00:40:27,239 Speaker 4: at all. 796 00:40:27,360 --> 00:40:29,080 Speaker 1: It was just exactly what you said. 797 00:40:29,680 --> 00:40:31,759 Speaker 4: It was a It was a square peg and now 798 00:40:31,800 --> 00:40:33,640 Speaker 4: we it's not going to fit in the round hole, 799 00:40:33,680 --> 00:40:36,160 Speaker 4: and somebody needed to look at it and take action, 800 00:40:36,760 --> 00:40:39,160 Speaker 4: and thankfully these clients allowed us to do it and 801 00:40:39,160 --> 00:40:39,640 Speaker 4: help them out. 802 00:40:39,640 --> 00:40:40,800 Speaker 1: All Right, thanks for listening. 803 00:40:41,080 --> 00:40:43,359 Speaker 4: You've been listening to Simply Money, presented by all Worth 804 00:40:43,400 --> 00:40:46,640 Speaker 4: Financial on fifty five KRC, the Talk station. 805 00:40:47,160 --> 00:40:50,520 Speaker 1: The Shumer shutdown, Trump shutdown, the Democrats will own it. 806 00:40:50,920 --> 00:40:52,719 Speaker 1: Portland is on fire. 807 00:40:52,480 --> 00:40:54,799 Speaker 3: The Ice facility has been under. 808 00:40:54,480 --> 00:40:58,920 Speaker 1: Siege, the President's declared war. 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