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Speaker 1: Our democracy itself is in the crosshairs.

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Speaker 2: Didn't make it happen.

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Speaker 1: You're holme down headquarters. We're about to lose the country.

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Speaker 1: Fifty five krs the talk station tonight.

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Speaker 3: Should you be fearful when markets hit all time highs?

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Speaker 3: You're listening to Simply Money. Here'said by all Worth Financial

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Speaker 3: on Bob spond Seller along with Brian James. It seems

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Speaker 3: like every other day the markets are hitting all time highs.

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Speaker 3: And guess what, it doesn't just seem that way. It

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Speaker 3: pretty much has been that way. But if you're listening

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Speaker 3: today and sitting on a pile of cash, maybe from

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Speaker 3: a recent business sale, or a large inheritance, or just

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Speaker 3: years of discipline saving, you might be thinking, Wow, the

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Speaker 3: market's too high right here, I've missed it. I'll wait

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Speaker 3: for the pullback, Brian. We hear that sentiment often, and

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Speaker 3: we've got some data tonight to just demonstrate that might

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Speaker 3: not be the best approach here.

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Speaker 4: Yeah. I'm a data guy, Bob, and you know this.

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Speaker 5: I like looking at actual factual results of different periods

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Speaker 5: of time, and so, for whatever it's worth, we can

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Speaker 5: look at a period of time and say, okay, this

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Speaker 5: is how it worked in the past. It may not

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Speaker 5: repeat itself, but this is at least one way of

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Speaker 5: how it worked in the past and kind of follow

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Speaker 5: that backwards. So so, but statistically speaking, what we're really

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Speaker 5: talking about here is if you've got a pile of money,

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Speaker 5: you know, and you're trying to decide you want to

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Speaker 5: get it into the market, you want to invest for

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Speaker 5: a long term. But it's always scary, right because we

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Speaker 5: all think our toes are hanging over the cliff and

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Speaker 5: we're immediately going to go over, and that is possible. Yes,

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Speaker 5: that has happened to some people, but it doesn't happen

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Speaker 5: very often. Statistically, you're more likely to grow your wealth

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Speaker 5: by investing it all now, even when the headlines are

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Speaker 5: shouting new records.

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Speaker 4: So let's look at the numbers behind this.

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Speaker 5: So the market has been at or near an all

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Speaker 5: time high about one out of every three months, one

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Speaker 5: in three every third month, once a quarter, bob, the

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Speaker 5: market is at an all time high.

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Speaker 4: It goes up, not down.

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Speaker 5: So therefore, yes, we usually are at an all time high,

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Speaker 5: and that's pretty normal. If you're always waiting for that

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Speaker 5: better entry point, you're ignoring the fact that the market

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Speaker 5: is usually in record territory, and you could be waiting

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Speaker 5: forever if you were sitting on money, you know, after

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Speaker 5: say twenty twenty three, which is a really good year,

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Speaker 5: and you said.

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Speaker 4: Nope, we're out a peak.

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Speaker 5: Well you've you've now left two full, fantastic years of

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Speaker 5: double digits. Possibly we'll see what happens this year, but

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Speaker 5: possibly two twenty percenters on the table that was a

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Speaker 5: huge mistake will permanently cost you.

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Speaker 3: All Right, Brian, I know you're loaded for bear with

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Speaker 3: data today and you feel that coming through Bob a

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Speaker 3: lot of energy, and I love it. Data plus energy

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Speaker 3: means a good radio show. I love it. But I

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Speaker 3: want to pause here just with a little bit of nuance.

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Speaker 3: I mean, what we're talking about here is longer term capital, correct,

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Speaker 3: money that you're planning on investing for five, seven, ten

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Speaker 3: years or longer. Not your emergency fund, the money you're

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Speaker 3: gonna need or want to remodel your bathroom next month

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Speaker 3: or next year or go on that cruise. So we're

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Speaker 3: not talking about putting every penny you have in the

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Speaker 3: stock market. We're talking about money allocated for long term

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Speaker 3: you know, capital growth. Am I not correct on that assumption? Absolutely? Yeah?

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Speaker 6: No.

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Speaker 5: So if you're if you're, and we have people all

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Speaker 5: the time that will say, you're not going to buy

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Speaker 5: a house in six months, So what which should we

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Speaker 5: invest this in?

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Speaker 4: Seah have more money from my down payment, the entry

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Speaker 4: is nothing.

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Speaker 3: Should I buy call options on Pal and teer stock?

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Speaker 4: Yeah?

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Speaker 5: Yeah, because I want to get out of PMI and

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Speaker 5: he just a little more down pay move but yeah,

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Speaker 5: So yeah, we are talking about longer term investments here.

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Speaker 5: And really, when you think about that, think about the

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Speaker 5: For those of you been around for a little bit,

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Speaker 5: think about those first dollars you threw in your four.

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Speaker 4: Oh one K when you were poor and eating ramen

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Speaker 4: noodles or whatever.

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Speaker 5: You don't you don't remember what happened to those, Nor

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Speaker 5: will you remember what happens to this particular lump sum

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Speaker 5: you're sitting on right now, ten fifteen years from now,

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Speaker 5: which is really the long term goal here.

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Speaker 4: You're not gonna remember the entry point.

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Speaker 5: And over time, of course, the market beats all as

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Speaker 5: long as we can put up with the with the

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Speaker 5: ups and down. So let's put some numbers to this, Bob.

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Speaker 5: So uh So, the S and P five hundred average

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Speaker 5: nine point six percent in the seventies, right, that is

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Speaker 5: a factual number. But a lot of people get hung

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Speaker 5: up on the idea that's that if you didn't reinvest

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Speaker 5: your dividends and we had stagflation and all these things,

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Speaker 5: the markets were technically flat. Yeah, you can argue, and

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Speaker 5: you can draw a chart that shows that. But if

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Speaker 5: you handled things the right way, you did not have

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Speaker 5: that experience.

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Speaker 3: Well, and Brian, the nineteen seventies for those who have

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Speaker 3: forgotten or didn't live during those years, I mean, we

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Speaker 3: had super high inflation. So if you did not average

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Speaker 3: nine point six percent during that decade, your money truly

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Speaker 3: was moving backwards in terms of purchasing power.

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Speaker 5: Yes, if you could go for protected yourself by leaving

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Speaker 5: that in the bank, Well, you left a bunch of

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Speaker 5: money on the table because you didn't get any of

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Speaker 5: the growth. You got the deflation of your own dollars.

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Speaker 5: But anyway, so continue on there, and then we had

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Speaker 5: over twenty percent averages in the eighties and really nothing

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Speaker 5: bad happened in the eighties, and I would assign that

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Speaker 5: to the nineties as well. Sometimes I feel like that's

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Speaker 5: the anomaly that a lot of our people with wealth,

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Speaker 5: now that's what they remember and they feel like the

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Speaker 5: twenty first century has been nothing but error and nothing

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Speaker 5: but craziness and mistakes and all that kind of stuff.

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Speaker 5: But really the last twenty five years have been more

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Speaker 5: normal when you compare them to the prior two hundred

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Speaker 5: eighties and nineties, Really nothing bad happened.

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Speaker 3: I love the nineteen eighties, not only for the stock

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Speaker 3: market returns, but for the music, Brian, the music, the

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Speaker 3: rock and roll. It was the golden age.

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Speaker 4: Admit it, Bob, you still have your mc hammer parachute pants.

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Speaker 3: I have all of it. Yeah, all the above. I

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Speaker 3: love it. I'd go back here in a second.

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Speaker 4: Are you wearing them right now?

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Speaker 3: I'm not going to discuss what I'm wearing. Please, let's

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Speaker 3: talk about the nineties and two thousands.

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Speaker 5: Bob spon seller wearing parachute pants this morning. So what

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Speaker 5: do we do about this? So we often talk about

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Speaker 5: dollar cost averaging. So this is the idea that you

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Speaker 5: should ease into the market by a little at a time. Right,

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Speaker 5: So if I got, you know, one hundred thousand dollars,

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Speaker 5: maybe I'll throw eight thousand in a month. This is

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Speaker 5: bad math for twelve months, and that'll get it to

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Speaker 5: ninety six thousand or whatever, but just breaking it into

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Speaker 5: chunks and putting it in. But if you do the math,

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Speaker 5: historically lump some wins. About seventy percent of the time,

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Speaker 5: putting all your money to work right away beats dollar

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Speaker 5: cost averaging. The reason for that is we are usually

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Speaker 5: not about to go over the cliff. Yes, you can

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Speaker 5: highlight situation like if I invested a bunch of money

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Speaker 5: on New Year's Even twenty twenty one, I went right

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Speaker 5: over the cliff. It does happen. That's why thirty percent

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Speaker 5: is also a figure. Two thirty percent of the time

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Speaker 5: that does happen. But you still got a seven hundred

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Speaker 5: batting average chance at putting it in at a time

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Speaker 5: where the market is going to continue in an upward trajectory.

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Speaker 3: All right, this is where we've got to interject some

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Speaker 3: behavioral finance methodology to all this. I mean, because people

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Speaker 3: hear about dollar cost averaging all the time, why does

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Speaker 3: that make sense even though the math says it doesn't.

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Speaker 3: Because if you know you're someone who's gonna panic the

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Speaker 3: moment you put all that money into the market, and

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Speaker 3: we get a regular pullback or correction of let's say

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Speaker 3: four or five percent, and if you're gonna panic. If

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Speaker 3: that happens, then by all means, spread out your investments

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Speaker 3: over time to reduce that emotional pressure. Just be honest

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Speaker 3: though about why you're doing it. As Brian's calling out here,

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Speaker 3: it's not because the math works better. It's because we're

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Speaker 3: trying to manage our own behavior. But if you're someone

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Speaker 3: who can't handle that short term volatility, you need to

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Speaker 3: manage your own behavior because what you don't want to

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Speaker 3: do is go down that track of investing the money

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Speaker 3: and then the first time we do get a five

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Speaker 3: to seven, eight, ten percent pullback, the phone's ringing and

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Speaker 3: you're saying, get me out, I can't take it. If

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Speaker 3: you're somebody that's going to end up doing that, we

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Speaker 3: just you know, defeated the whole purpose of doing this

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Speaker 3: in the first place, and you really did move backwards.

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Speaker 5: Yeah, that's exactly right, And so that's why we want

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Speaker 5: to make sure we're taking a breath and just make

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Speaker 5: sure you don't have to stomach all of the risk,

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Speaker 5: because remember, if you've done this correctly, then you're doing

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Speaker 5: it with dollars that you've guaranteed yourself you're not going

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Speaker 5: to need in the short run as Bob and I've

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Speaker 5: been saying all year long, we're looking at it. We

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Speaker 5: are at a market peak. So what that means is,

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Speaker 5: if you know you've got bills, come and do even

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Speaker 5: in next year, carve those dollars out, take them out now.

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Speaker 5: Will the market's at a peak, Walk out of the

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Speaker 5: casino with some chips in the bucket, stick it off

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Speaker 5: to the side, and a money market fund. If it

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Speaker 5: happens to be an IRA or something and you're looking

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Speaker 5: to wait until January new tax here to take that distribution,

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Speaker 5: you can keep it in the IRA, but remove it

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Speaker 5: from the market, move it to a money market type position,

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Speaker 5: or maybe a CD or something like that. But again,

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Speaker 5: that's really the only step you should be taking. If

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Speaker 5: these are all long term dollars and they don't really

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Speaker 5: have a job specifically yet, let them roll, Let them

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Speaker 5: roll and let them do their job.

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Speaker 3: You're listening to Simply Money presented by all Worth Financial

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Speaker 3: I Bob Sponsller along with Brian James. Brian, let's get

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Speaker 3: into a couple of actual scenarios using real data. We're

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Speaker 3: going to use say Maggie and Tom, two completely different investors,

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Speaker 3: each of them just sold a business and each of

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Speaker 3: them are now sitting on two million dollars in cash,

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Speaker 3: wondering what to do with it. The S and P

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Speaker 3: five hundred hits a record high. And here's what each

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Speaker 3: of them decides to do. Maggie decides to listen to Brian.

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Speaker 3: She trusts the data. She puts her full two million

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Speaker 3: dollars into a globally diversified portfolio, immediately, all of it now,

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Speaker 3: knowing that he's not gonna think about it or touch

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Speaker 3: it for ten or fifteen years. Well, that two million

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Speaker 3: dollars grows to four million in just a two year span. Tom,

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Speaker 3: on the other hand, he sits in cash, all cash.

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Speaker 3: Why because that ten percent pullback he in his gut

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Speaker 3: thinks and knows is gonna happen, it never comes, or

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Speaker 3: when it did, he got scared and decided to wait

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Speaker 3: for another pullback. Then Tom completely misses the bulk of

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Speaker 3: all the games. Brian, we see people behave this way.

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Speaker 3: These are two polar opposite extremes. But this is not

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Speaker 3: unlike a lot of people you know sometimes behave when

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Speaker 3: big dollar amounts are are on the table.

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Speaker 5: Sure, especially, and remember think about the situation here. Let's

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Speaker 5: a little context of what these decisions were driven by.

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Speaker 5: Maggie and Tom both built businesses. These are their babies.

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Speaker 5: They decided to sell their babies. That's a pretty big,

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Speaker 5: once in a lifetime decision. So it absolutely can be terrifying.

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Speaker 5: That doesn't change the met of the decision making process

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Speaker 5: that we're talking about here, but that adds an awful

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Speaker 5: lot of emotion. It is very very very very easy

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Speaker 5: for you know, somebody who is works for another company

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Speaker 5: and their investments consist of their four Oh okay, keep

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Speaker 5: throwing money and systematically, every you know, every couple of weeks,

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Speaker 5: that person will slowly get to that two million dollar figure.

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Speaker 5: Maggie and Tom took a very different road to get there.

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Speaker 5: They probably took a lot of personal risks. These are

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Speaker 5: situations where they can probably tell stories of in the past,

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Speaker 5: having to cover payroll with their credit cards and a

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Speaker 5: home equity line of credit. That's what business owners go through.

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Speaker 5: So I understand the terrifying decision that this is. I've

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Speaker 5: now got the biggest pile of money I'll ever have.

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Speaker 4: I don't want to I don't want to be gambling it.

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Speaker 5: That does not change what market history tells us, though,

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Speaker 5: So the answer is make sure that you've carved out

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Speaker 5: enough to cover whatever expenses you think you're going to

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Speaker 5: have in the short term. Maybe that's twelve twenty four months,

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Speaker 5: maybe a little longer, and then the rest of it.

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Speaker 5: Let it fly, because there's just no reason to question

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Speaker 5: the question the history we've had over decades and decades

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Speaker 5: and decades of greed driving the markets up. Smart people

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Speaker 5: creates mark publicly traded companies. They find new and creative

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Speaker 5: ways to make profits and increase those profit margins every

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Speaker 5: single day.

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Speaker 4: Let's not question it.

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Speaker 3: Yeah, and our last piece of data to share here

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Speaker 3: tonight in this this data really your data. Your day

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Speaker 3: never never changes. If you invested a million dollars in

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Speaker 3: the S and P five hundred twenty years ago, kept

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Speaker 3: it there, hibernated for twenty years, and ignored it, your

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Speaker 3: million dollars would be worth more than seven million dollars today.

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Speaker 3: If you pulled it out and then proceeded to miss

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Speaker 3: the ten best days during that twenty year period, it

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Speaker 3: would still be worth a lot of money, but it's

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Speaker 3: worth less than half of seven million. It's worth only

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Speaker 3: three million, and it gets worse from there. You missed

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Speaker 3: the best twenty days, your million dollars would only be

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Speaker 3: worth about two million dollars, which sounds good until you

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Speaker 3: factor in inflation. And let's face it, beating inflation is

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Speaker 3: the key to everything when it comes to really growing

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Speaker 3: net worth and growing purchasing power. So therefore, the oppera

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Speaker 3: tunity cost of staying out of the market is real

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Speaker 3: sitting in cash. Even at five percent, it does not

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Speaker 3: beat the long term returns of a global, globally diversified portfolio.

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Speaker 5: Yeah, no, I want to re I want to hit

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Speaker 5: on because I think we bring up that point all

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Speaker 5: the time about the best days in the market. There's

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Speaker 5: seventy three hundred days in a twenty year period. We

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Speaker 5: are literally talking about missing ten of them because the

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Speaker 5: market mostly does a bunch of nothing, goes up today

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Speaker 5: and down tomorrow, and it cancels out. It's the ten days,

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Speaker 5: it's the big days that we get that really move

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Speaker 5: the needle forward. So if you're trying to time it

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Speaker 5: and tap dance in and out, you are highly likely

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Speaker 5: to miss it.

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Speaker 3: And none of us are smart enough to know when

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Speaker 3: those ten great days are coming. Here's the all Worth advice.

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Speaker 3: Waiting for the perfect entry point often means missing the

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Speaker 3: point altogether. Time in the market almost always beats timing

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Speaker 3: the market. Coming up next, a famous NASCAR driver says

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Speaker 3: he fell for a financial trap that Brian, you and

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Speaker 3: I discuss on the show all the time. We'll talk

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Speaker 3: about that next. Listening to Simply Money presented by all

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Speaker 3: Worth Financial on fifty five KRC the Talk.

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Speaker 1: Station if KRC.

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Speaker 7: Allworth Financial a registered investment advisory firm. Any ideas presented

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Speaker 7: during this program are not intended to provide specific financial advice.

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Speaker 7: You should consult your own financial advisor, tax consultant, or

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Speaker 7: a state planning attorney to conduct your own due diligence

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Speaker 7: to this.

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Speaker 3: To this, all right, Joe Strecker, I gotta tip my

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Speaker 3: hat tea. You listen to us talk about eighties music

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Speaker 3: and you cut right on queue. That is good stuff, brother.

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Speaker 3: All right? You're listening is Simply Money presented by Allworth

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Speaker 3: Financial and Bob Sponseller along with Brian James. If you

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Speaker 3: can't listen to Simply Money live every night, subscribe and

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Speaker 3: get our daily podcasts. Just search Simply Money on the

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Speaker 3: iHeart app or wherever you find your podcast. What happens

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Speaker 3: when one spouse is ready to retire and the other isn't.

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Speaker 3: Plus one listener grapples with managing money after the loss

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Speaker 3: of a parent. Your questions and our answers straight ahead

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Speaker 3: at six forty three. All right, Brian, you'll love this topic.

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Speaker 3: If you're a NASCAR fan, you probably already know who

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Speaker 3: Kyle Busch is. Bush and his wife Samantha have filed

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Speaker 3: a lawsuit alleging they were missold a series of indexed

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Speaker 3: universal life insurance policies by Pacific Life Insurance Company. And

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Speaker 3: I guess an unscrupulous, unscrupulous agent a lot to unpack here, Brian.

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Speaker 5: Yeah, there's a lot, and this is going to I mean,

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Speaker 5: there's no way for this story not to come off

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Speaker 5: as a shot at the insurance industry, and I assure

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Speaker 5: you that's not what this is. However, just like any industry,

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Speaker 5: there are dark corners of it, and this is kind

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Speaker 5: of one of them.

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Speaker 4: Insurance is a tool just like anything else.

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Speaker 5: As I always say, if I have a hammer in

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Speaker 5: my hand, I can build a birthouse or I can

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Speaker 5: hit myself in the head with it.

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Speaker 4: It depends on what I do. So anyway, here's the

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Speaker 4: gist of what happened to the Bushes.

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Speaker 5: According to this complaint, they paid more than ten to

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Speaker 5: almost ten and a half million dollars, that's ten and

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Speaker 5: a half million in premiums for Index Universe life insurance

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Speaker 5: policies that were pitched as tax free retirement plans, meaning

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Speaker 5: they're safe, they're self funding, these are things you can

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Speaker 5: rely on a nice and secure but anyway, so they're

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Speaker 5: now claiming the claim in their complaint is that these

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Speaker 5: policies had hidden fees, unrealistic projections, rising costs, and now

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Speaker 5: their net loss exceeds over eight and a half million dollars.

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Speaker 5: And I know some people are out there going, you know,

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Speaker 5: crimea river, but this does happen. These are real dollars.

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Speaker 5: It happens to average people too, without eight digit figures.

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Speaker 5: So according to Kyle that he said, I never thought

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Speaker 5: something like this could happen to us. We trusted the

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Speaker 5: people who sold them in the name Pacific Life, big

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Speaker 5: old insurance company, but reality is very different. So anyway,

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Speaker 5: what they ran into is that these things are complicated, right,

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Speaker 5: There's a lot of moving parts to these. An index

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Speaker 5: universal life policy combines a life insurance death benefit and

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Speaker 5: cash value and ties it to an equity index. On paper,

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Speaker 5: you want to say, wow, that's three of my favorite things,

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Speaker 5: because it looks like you can get all these different

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Speaker 5: features all in one here, kind of like this army

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Speaker 5: knife of financial tools. But realistically, there are caps on

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Speaker 5: the upside, meaning whatever index you tie it to, you know,

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Speaker 5: you might get an eighty percent cap of that for

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Speaker 5: some reason. You know, So if the S and P

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Speaker 5: five hundred is up ten percent, then you get to

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Speaker 5: keep eight. There's a bottom for sure, there is a floor.

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Speaker 5: You're not gonna lose that much, you know, if when

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Speaker 5: the market goes down. My complaint on all of this

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Speaker 5: is if you if you're not a panicker, if you

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Speaker 5: weren't gonna panic anyway when the market came down and

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Speaker 5: you were just gonna let it ride, then you don't

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Speaker 5: need that floor.

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Speaker 4: So don't restrict yourself with the cap. Most people don't

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Speaker 4: need these things.

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Speaker 5: But anyway, Also, the cost of life insurance went up,

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Speaker 5: of course, and that's just statistical. That happens every year,

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Speaker 5: and there's risk to these if you stop paying the premiums.

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Speaker 5: In other words, if you're gonna do one of these,

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Speaker 5: you've got to die with it in place. You're not

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Speaker 5: moving into another insurance company.

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Speaker 4: You just married yourself to it. It will have to

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Speaker 4: outlive you or you'll pay a lot of taxes.

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Speaker 3: Yeah, that's the concern I have with these, and I've

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Speaker 3: seen these over the years. A couple things happen. I mean,

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Speaker 3: number one, life changes. You know, it sounds great when

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Speaker 3: you're in your thirties and you pile a bunch of

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Speaker 3: money into these things, and if everything goes according to

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Speaker 3: plan on how these things are pitched, you know, at

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Speaker 3: the beginning on the on the policy illustration, they can

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Speaker 3: work out pretty well. But you know, something like life happens.

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Speaker 3: You don't know how all your kids are going to

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Speaker 3: turn out. You don't know if you're gonna want to

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Speaker 3: pull money out to buy a vacation home or help

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Speaker 3: your kids with college education. And if you start to

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Speaker 3: mess with that plan and pull money out, you know,

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Speaker 3: either taking the money out or borrowing it, it changes

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Speaker 3: the whole calculus of that long term model. And I

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Speaker 3: think that's what a lot of people don't factor in

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Speaker 3: when they get sold these things. And I underline the

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Speaker 3: word sold because these are typically sold way more often

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Speaker 3: than they are bought, because, as you said, Brian, they

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Speaker 3: are very complex. I want to mention something about these

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Speaker 3: cap rates too, because I've seen this happen and most

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Speaker 3: people never read or understand the fine print of this.

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Speaker 3: You know, if you might go in with an eighty

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Speaker 3: percent upside participation rate, but the insurance comes and not

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Speaker 3: just specifical life, all these companies, or most of them,

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Speaker 3: they have the right contractually in the language to lower

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Speaker 3: that participation rate over time. So what can happen is,

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Speaker 3: you know, if they lower that upside, you've just bought

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Speaker 3: a very expensive what I'll call, you know, bond equivalent fund.

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Speaker 3: You give up a lot of your return, upside return

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Speaker 3: just to have that floor in place, and you paid

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Speaker 3: a ton in fees and expenses. And that's the other

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Speaker 3: thing that can change, and most people never see that coming.

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Speaker 5: Yeah, And the thing that I think is worth making

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Speaker 5: sure we remember here is a lot of people just

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Speaker 5: get attracted to the idea that there are guarantees involved here,

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Speaker 5: and when we review these people will have bought them

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Speaker 5: in the past and will bring them in.

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Speaker 4: How does this you know?

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Speaker 5: And I'm not going to blow somebody out of this

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Speaker 5: and recommend that we pay all the taxes and undo

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Speaker 5: it. It is what it is that we're already in place,

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Speaker 5: and we'll work around whatever it is. But again, just

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Speaker 5: to make sure everybody knows that if you've purchased some

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Speaker 5: kind of insurance project that purports to be an investment

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Speaker 5: oriented type of a thing versus death benefit, then let's

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Speaker 5: use it for what it's what it's worth. So on

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Speaker 5: the other side of these is annuities with income writers.

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Speaker 5: A lot of times that they're they're they're these are expensive.

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Speaker 5: You're paying two, three, sometimes close to four percent for

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Speaker 5: the guarantee of a stream of income that that I

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Speaker 5: bet that insurance company has never ever ever had to

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Speaker 5: pay uh, because the market goes up, not down. So

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Speaker 5: if they're giving income guarantees against market based performance, well

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Speaker 5: then they've then the market whenever it's at an all

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Speaker 5: time high. That means they've never had to pay out

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Speaker 5: on those guarantees. But people like the word, and so

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Speaker 5: what we do is, let's make sure we do the math,

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Speaker 5: we understand how that guarantee works, and let's turn this

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Speaker 5: pigot on and use that income. Do not do not

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Speaker 5: do not think of it as a CD like a

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Speaker 5: lot of people do.

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Speaker 4: It isn't all right.

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Speaker 3: Last week we told you about Brian's hottest new meme

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Speaker 3: stock called Beyond Meat, and the stock price shot up

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Speaker 3: after people on social media used word of mouth to

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Speaker 3: really boost it up. Well, here's a shocker. The stock

435
00:19:56,160 --> 00:19:59,520
Speaker 3: just dropped eleven percent after the company had to delay

436
00:19:59,640 --> 00:20:03,679
Speaker 3: report it's financial results. Brian, hopefully you didn't take too

437
00:20:03,720 --> 00:20:04,960
Speaker 3: big of a bath on this one.

438
00:20:05,040 --> 00:20:07,879
Speaker 5: Well, this was after bob'spond seller was spotted with a

439
00:20:07,920 --> 00:20:10,880
Speaker 5: sack full of sliders from Whitecastle that are were fake

440
00:20:10,960 --> 00:20:13,560
Speaker 5: meat sliders and uh and that there are social media

441
00:20:13,600 --> 00:20:15,320
Speaker 5: people got a hold of that and it just went

442
00:20:15,320 --> 00:20:18,680
Speaker 5: wild from there. But unfortunately, just a meme Bob stuffing

443
00:20:18,680 --> 00:20:20,159
Speaker 5: his face is not a reason to invest.

444
00:20:21,640 --> 00:20:25,720
Speaker 3: Here's the Allworth advice. Memestocks made trend online, but your

445
00:20:25,760 --> 00:20:29,320
Speaker 3: financial future should not be built on hype. Stick to

446
00:20:29,400 --> 00:20:35,800
Speaker 3: investments with real fundamentals, not fleeting fads. Success does not

447
00:20:36,200 --> 00:20:40,040
Speaker 3: always equal satisfaction. How to move past a career plateau?

448
00:20:40,600 --> 00:20:42,959
Speaker 3: Coming up next. You're listening to Simply Money presented by

449
00:20:42,960 --> 00:20:46,600
Speaker 3: all Worth Financial on fifty five KRC, the talk station.

450
00:20:47,080 --> 00:20:51,040
Speaker 2: What's Happening the US and chin see an iHeartRadio station.

451
00:20:55,359 --> 00:20:57,880
Speaker 3: You're listening to Simply Money presented by all worth financial

452
00:20:57,920 --> 00:21:00,879
Speaker 3: on Bob's spon Seller along with Brian Jane, joined tonight

453
00:21:00,920 --> 00:21:04,720
Speaker 3: by our career expert Julie Bouki and Julie, thanks as

454
00:21:04,760 --> 00:21:08,520
Speaker 3: always for taking some time with us tonight and interesting

455
00:21:08,600 --> 00:21:11,879
Speaker 3: topic we're going to cover tonight career plateaus. What to

456
00:21:12,000 --> 00:21:15,600
Speaker 3: do when we're feeling successful in our job or in

457
00:21:15,640 --> 00:21:20,000
Speaker 3: our career, but we're no longer feeling challenged. How do

458
00:21:20,040 --> 00:21:22,359
Speaker 3: you navigate people through that situation?

459
00:21:22,560 --> 00:21:26,600
Speaker 2: Julie, You know, there are a lot of pivot points

460
00:21:26,640 --> 00:21:30,160
Speaker 2: in our careers, like decision points where we feel maybe

461
00:21:30,200 --> 00:21:33,320
Speaker 2: something is off. We want more, we want different, we

462
00:21:33,359 --> 00:21:38,359
Speaker 2: want less, and those are natural moments in our career.

463
00:21:38,840 --> 00:21:41,640
Speaker 2: The problem is that we've been taught to just sort

464
00:21:41,640 --> 00:21:45,240
Speaker 2: of swallow them down and continue on and make the

465
00:21:45,280 --> 00:21:48,480
Speaker 2: best of what we have. I think the most important

466
00:21:48,680 --> 00:21:50,600
Speaker 2: smartest thing to do when it comes to your career

467
00:21:50,640 --> 00:21:53,440
Speaker 2: is when you're starting to feel like my career is

468
00:21:53,480 --> 00:21:55,560
Speaker 2: at a plateau, the first thing you need to do

469
00:21:55,720 --> 00:21:59,560
Speaker 2: is figure out why. What is it specifically that has

470
00:21:59,600 --> 00:22:03,720
Speaker 2: classed if you are if it's things like income, if

471
00:22:03,760 --> 00:22:08,720
Speaker 2: it's a level of responsibility, if it's the depth of

472
00:22:08,880 --> 00:22:12,320
Speaker 2: the challenging projects or not that you get exposed to.

473
00:22:13,080 --> 00:22:16,760
Speaker 2: You have to really articulate what it is that it

474
00:22:16,800 --> 00:22:19,280
Speaker 2: is plateaued and before that, if you have to do

475
00:22:19,320 --> 00:22:21,320
Speaker 2: that before you can figure out what to do next.

476
00:22:21,359 --> 00:22:26,240
Speaker 2: Once you can identify the source of your discomfort, it's

477
00:22:26,320 --> 00:22:30,639
Speaker 2: much easier to identify and so pinpointing that, Okay, you

478
00:22:30,640 --> 00:22:32,400
Speaker 2: know I used to like this, This used to work

479
00:22:32,440 --> 00:22:36,720
Speaker 2: for me, it's not now, or I feel like something's changed.

480
00:22:37,160 --> 00:22:39,679
Speaker 2: The most important thing to do at that point is

481
00:22:39,720 --> 00:22:43,080
Speaker 2: to get into self discovery and investigative mode. What has changed.

482
00:22:43,440 --> 00:22:46,119
Speaker 2: It could be something at work. It could be a

483
00:22:46,160 --> 00:22:49,320
Speaker 2: new leader. It could be the company is changing customers

484
00:22:49,400 --> 00:22:52,199
Speaker 2: or targets and it's not fun for you anymore. But

485
00:22:52,240 --> 00:22:54,920
Speaker 2: it also could be just a yearning from a real

486
00:22:55,320 --> 00:22:59,159
Speaker 2: career standpoint to do something different. Maybe you've reached the

487
00:22:59,320 --> 00:23:01,800
Speaker 2: end of the rope the top of the ladder in

488
00:23:01,840 --> 00:23:04,160
Speaker 2: what you do and it's time to do a serious pivot.

489
00:23:04,320 --> 00:23:07,960
Speaker 2: So before we take on big moves like that, it's

490
00:23:08,119 --> 00:23:10,960
Speaker 2: really important to figure out what's not working for me

491
00:23:11,000 --> 00:23:13,320
Speaker 2: today and what am I willing.

492
00:23:13,080 --> 00:23:13,600
Speaker 4: To do about it?

493
00:23:13,720 --> 00:23:16,240
Speaker 5: Hey, Julie, do you find that people get stuck from

494
00:23:16,240 --> 00:23:19,000
Speaker 5: a standpoint of well, this has been a good company,

495
00:23:19,080 --> 00:23:20,960
Speaker 5: and so whatever I do, it's just out of the

496
00:23:21,040 --> 00:23:23,159
Speaker 5: question that I might go somewhere else. I mean, it

497
00:23:23,160 --> 00:23:25,000
Speaker 5: seems like, yeah, people hide behind it all the time,

498
00:23:25,240 --> 00:23:26,359
Speaker 5: and how do you get over that home?

499
00:23:27,520 --> 00:23:30,440
Speaker 2: So I have four there's four pillars of career happiness.

500
00:23:30,480 --> 00:23:33,160
Speaker 2: One is you like what you do, second is you're

501
00:23:33,200 --> 00:23:36,080
Speaker 2: good at it. The third is you're getting paid in

502
00:23:36,119 --> 00:23:38,679
Speaker 2: a way that you can live. And the fourth is

503
00:23:38,720 --> 00:23:41,800
Speaker 2: you're you're doing it in the right place. And the

504
00:23:41,920 --> 00:23:47,120
Speaker 2: number one reason people leave their organizations is the fourth one,

505
00:23:47,440 --> 00:23:49,920
Speaker 2: which is it's either I don't like the culture anymore,

506
00:23:49,960 --> 00:23:51,960
Speaker 2: the mission, I don't like my leader. That's actually the

507
00:23:52,040 --> 00:23:55,560
Speaker 2: number one reason in that bucket. And so so when

508
00:23:55,600 --> 00:23:58,159
Speaker 2: you are in a situation when you look around and say,

509
00:23:58,280 --> 00:24:00,800
Speaker 2: I really like you here, you know, like what we do,

510
00:24:01,040 --> 00:24:05,840
Speaker 2: I like my colleagues, I'm aligned with mission, and it's

511
00:24:05,920 --> 00:24:09,119
Speaker 2: still great, then you owe it to yourself to figure

512
00:24:09,160 --> 00:24:11,000
Speaker 2: out to look around and say.

513
00:24:10,680 --> 00:24:11,240
Speaker 1: What is it?

514
00:24:11,720 --> 00:24:14,920
Speaker 2: What else is available in this organization? How am I

515
00:24:14,920 --> 00:24:18,000
Speaker 2: I contribute? How might I take what's on my plate?

516
00:24:18,440 --> 00:24:20,480
Speaker 2: And you know, showed it up a little bit, Maybe

517
00:24:20,480 --> 00:24:23,280
Speaker 2: that adds something. Maybe it's you know, get involved in

518
00:24:23,359 --> 00:24:27,760
Speaker 2: something that's maybe not typically something you're responsible for. Maybe

519
00:24:27,800 --> 00:24:30,679
Speaker 2: you get involved on a different team, maybe you just

520
00:24:30,720 --> 00:24:33,199
Speaker 2: sort of add something to your overall plate when you

521
00:24:33,320 --> 00:24:36,680
Speaker 2: like where you are. I always tell people, let's always

522
00:24:36,760 --> 00:24:39,120
Speaker 2: try to figure out if you can fix it where

523
00:24:39,160 --> 00:24:42,879
Speaker 2: you are before you change into a culture in an

524
00:24:43,000 --> 00:24:47,760
Speaker 2: organization that's completely unknown to you and find that you

525
00:24:47,840 --> 00:24:49,399
Speaker 2: might be in the same position or worse.

526
00:24:51,320 --> 00:24:54,160
Speaker 3: Julie, I to me, I think, correct me if I'm wrong.

527
00:24:54,160 --> 00:24:56,840
Speaker 3: But it seems that this comes down to communication. You know,

528
00:24:56,880 --> 00:24:59,560
Speaker 3: in that scenario you just talked about, and I got

529
00:24:59,600 --> 00:25:01,800
Speaker 3: to call you yesterday from a young man who's just

530
00:25:01,840 --> 00:25:04,359
Speaker 3: getting started in his career. You know, I happened to

531
00:25:04,400 --> 00:25:07,040
Speaker 3: coach him in high school baseball, so we still have

532
00:25:07,160 --> 00:25:09,880
Speaker 3: maintained a connection. And he was in a place where

533
00:25:09,920 --> 00:25:12,400
Speaker 3: he's just like, hey, I don't know what to do here,

534
00:25:12,960 --> 00:25:15,800
Speaker 3: and he's afraid to go talk to anybody about it.

535
00:25:16,160 --> 00:25:20,040
Speaker 3: So walk us through the most effective ways to navigate

536
00:25:20,119 --> 00:25:24,760
Speaker 3: this from a communication standpoint, Because people sometimes are afraid

537
00:25:24,800 --> 00:25:27,959
Speaker 3: to approach their boss, you know, if they express any

538
00:25:28,440 --> 00:25:32,359
Speaker 3: displeasure at all, they're afraid of repercussions. How do you

539
00:25:32,440 --> 00:25:36,040
Speaker 3: coach people? How to broach the subject with folks in

540
00:25:36,080 --> 00:25:39,359
Speaker 3: the organization. If you're trying to stay at the same

541
00:25:39,400 --> 00:25:42,760
Speaker 3: company for all the reasons you just mentioned, but you

542
00:25:42,880 --> 00:25:45,920
Speaker 3: have to have a conversation and because things need to change,

543
00:25:45,920 --> 00:25:46,960
Speaker 3: how do you navigate that?

544
00:25:48,440 --> 00:25:50,840
Speaker 2: And so I would touch it this way. I would

545
00:25:50,840 --> 00:25:54,159
Speaker 2: say something like, I'd like to talk to you about

546
00:25:54,640 --> 00:25:57,440
Speaker 2: the work I'm doing, what might be next, what things

547
00:25:57,480 --> 00:26:00,240
Speaker 2: I'm interested in doing beyond what I'm doing now? Can

548
00:26:00,280 --> 00:26:02,359
Speaker 2: we sit down and talk about that? And so you

549
00:26:02,400 --> 00:26:05,720
Speaker 2: want to open it up not as a I'm not happy,

550
00:26:06,119 --> 00:26:08,520
Speaker 2: what can you do for me? Anything that smacks of

551
00:26:08,560 --> 00:26:11,480
Speaker 2: that is when we start calling someone entitled. So it's

552
00:26:11,520 --> 00:26:15,040
Speaker 2: more about how can I have a mutually beneficial conversation

553
00:26:15,560 --> 00:26:18,600
Speaker 2: about my role in this organization than what I see

554
00:26:18,640 --> 00:26:22,600
Speaker 2: myself doing different different things or doing more of or

555
00:26:22,640 --> 00:26:25,159
Speaker 2: less of moving forward? And then go to that meeting,

556
00:26:25,480 --> 00:26:27,480
Speaker 2: go to that comp once you've set it up like that,

557
00:26:28,040 --> 00:26:31,040
Speaker 2: go to the conversation with ideas. Be ready to say

558
00:26:31,880 --> 00:26:33,960
Speaker 2: I really feel like I have You know, I spent

559
00:26:34,040 --> 00:26:36,200
Speaker 2: a lot of time over here on these kind of projects,

560
00:26:36,359 --> 00:26:38,399
Speaker 2: which has been great. I really feel like I know

561
00:26:38,520 --> 00:26:41,520
Speaker 2: it really really well. What I'd really love to do

562
00:26:41,680 --> 00:26:44,159
Speaker 2: moving forward if we can find an opportunity, I'd like

563
00:26:44,200 --> 00:26:47,240
Speaker 2: to do this, or what marketing is doing is really

564
00:26:47,320 --> 00:26:49,240
Speaker 2: interesting to me. So you want to go in with

565
00:26:49,440 --> 00:26:54,280
Speaker 2: a spirit of how can we work together to help

566
00:26:54,400 --> 00:26:58,040
Speaker 2: me direct my skills and abilities and my experience here

567
00:26:58,600 --> 00:27:03,120
Speaker 2: at something to continue helping this organization versus I'm not happy?

568
00:27:03,400 --> 00:27:06,680
Speaker 2: What should I do? Because that's where you are offloading

569
00:27:06,720 --> 00:27:10,280
Speaker 2: your career management onto somebody else, and that's not fair

570
00:27:10,320 --> 00:27:11,560
Speaker 2: to them and it's also not.

571
00:27:11,480 --> 00:27:14,280
Speaker 5: Realistic, Julie, So I want to I want to go

572
00:27:14,440 --> 00:27:16,920
Speaker 5: slightly different direction here because I think a lot there's

573
00:27:16,920 --> 00:27:19,200
Speaker 5: a lot of drum beats out there over the last

574
00:27:19,200 --> 00:27:21,639
Speaker 5: couple decades about you know, pulling yourself up by your

575
00:27:21,640 --> 00:27:24,040
Speaker 5: own bootstraps and being your own boss and all that

576
00:27:24,080 --> 00:27:26,959
Speaker 5: kind of stuff. How often do you run across people

577
00:27:27,240 --> 00:27:29,560
Speaker 5: for whom they're there? There may be leaning toward I

578
00:27:29,600 --> 00:27:31,840
Speaker 5: want to break away and start my own thing. You know,

579
00:27:31,840 --> 00:27:33,639
Speaker 5: we're fortunate here in Cincinnati. We have a lot of

580
00:27:33,680 --> 00:27:36,200
Speaker 5: fortune five hundred companies around us, so we're all somebody's

581
00:27:36,200 --> 00:27:38,479
Speaker 5: employee and that's a wonderful structure that we have. But

582
00:27:38,520 --> 00:27:40,639
Speaker 5: do people often come to you and say, forget it,

583
00:27:40,680 --> 00:27:42,480
Speaker 5: I just want to bust out and do my own thing.

584
00:27:42,720 --> 00:27:44,239
Speaker 4: And what is your advice for them? Because that can

585
00:27:44,280 --> 00:27:46,080
Speaker 4: be an exhilarating and terrifying step.

586
00:27:47,480 --> 00:27:50,800
Speaker 2: It is so so picture. You've got two buckets and

587
00:27:50,840 --> 00:27:53,560
Speaker 2: one of them is everything in that bucket is your

588
00:27:53,600 --> 00:27:56,439
Speaker 2: career and your job right now, and the other bucket

589
00:27:56,560 --> 00:27:58,640
Speaker 2: is what you want to build. First of all, you've

590
00:27:58,640 --> 00:28:01,040
Speaker 2: got to get intempt. You've really got to get clarity

591
00:28:01,160 --> 00:28:03,919
Speaker 2: on what you want to do, what the market is

592
00:28:03,920 --> 00:28:06,040
Speaker 2: for it. All that due diligent stuff, and what we

593
00:28:06,160 --> 00:28:08,480
Speaker 2: counsel people on is once you've figured out that there

594
00:28:08,520 --> 00:28:10,040
Speaker 2: is a market and there is a need for it,

595
00:28:10,160 --> 00:28:11,760
Speaker 2: just know that it's going to take a lot longer

596
00:28:11,800 --> 00:28:14,600
Speaker 2: than you think to do it. Just because it's a

597
00:28:14,600 --> 00:28:18,119
Speaker 2: good just because there's demand, just because it's a good idea,

598
00:28:18,400 --> 00:28:20,119
Speaker 2: it doesn't mean people will pay for it. And a

599
00:28:20,119 --> 00:28:22,760
Speaker 2: lot of entrepreneurs come that out. And so, how can

600
00:28:22,800 --> 00:28:25,359
Speaker 2: you test while you're still keeping one eye on keeping

601
00:28:25,400 --> 00:28:28,320
Speaker 2: your job, How can you test your ideas? How can

602
00:28:28,359 --> 00:28:32,160
Speaker 2: you connect with people in a similar or adjacent space

603
00:28:32,480 --> 00:28:35,400
Speaker 2: to get their ideas, and so that you are slowly

604
00:28:35,600 --> 00:28:39,080
Speaker 2: filling the second bucket and at that point, you'll know

605
00:28:39,280 --> 00:28:41,360
Speaker 2: you will. If you get to the point where you

606
00:28:41,480 --> 00:28:45,760
Speaker 2: gather knowledge, information resources, you're testing your theory, you're starting

607
00:28:45,760 --> 00:28:47,680
Speaker 2: to get some real interest people who are willing to

608
00:28:47,680 --> 00:28:50,360
Speaker 2: pay you. Then at some point you've got to let go.

609
00:28:50,480 --> 00:28:52,000
Speaker 2: You've got to dump out that other bucket.

610
00:28:52,320 --> 00:28:55,200
Speaker 3: Great advice is always Julie, Thanks again for spending time

611
00:28:55,240 --> 00:28:57,640
Speaker 3: with us. Tonight. You're listening to Simply Money, presented by

612
00:28:57,680 --> 00:29:01,120
Speaker 3: all Worth Financial on fifty five KARC the Talk Station.

613
00:29:01,800 --> 00:29:05,280
Speaker 1: The Shumer shutdown, Trump shutdown, the Democrats will own it.

614
00:29:05,600 --> 00:29:07,000
Speaker 4: Portland is on fire.

615
00:29:07,160 --> 00:29:09,479
Speaker 1: The Ice facility has been under siege.

616
00:29:09,920 --> 00:29:13,240
Speaker 5: President's declared war from Chicago is a disaster.

617
00:29:13,480 --> 00:29:16,160
Speaker 3: We deserve to be safe in our communities again.

618
00:29:16,200 --> 00:29:19,160
Speaker 1: Thank America, Trump again. Israel and Hamaso a piece deal

619
00:29:19,200 --> 00:29:19,840
Speaker 1: is closer than ever.

620
00:29:20,080 --> 00:29:22,280
Speaker 4: Just about every nation working on this.

621
00:29:22,360 --> 00:29:26,120
Speaker 1: The events of the day. Clear transparent information are heard

622
00:29:26,400 --> 00:29:31,080
Speaker 1: every day in real time. Fifty five KRC the talk station,

623
00:29:32,040 --> 00:29:32,680
Speaker 1: Get your See.

624
00:29:36,720 --> 00:29:39,400
Speaker 3: You're listening to Simply Money presented by all Work Financial

625
00:29:39,400 --> 00:29:42,480
Speaker 3: on Bob Sponsller along with Brian James. If you have

626
00:29:42,520 --> 00:29:44,840
Speaker 3: a financial question you'd like for us to answer, there's

627
00:29:44,840 --> 00:29:46,960
Speaker 3: a red button you can click while you're listening to

628
00:29:47,000 --> 00:29:50,160
Speaker 3: the show. If you're listening on the iHeart app, simply

629
00:29:50,200 --> 00:29:53,080
Speaker 3: record your question and it will come straight to us.

630
00:29:53,800 --> 00:29:56,760
Speaker 3: All right, Tom and Northside. Brian says, we hold stock

631
00:29:56,840 --> 00:30:00,560
Speaker 3: options in a pre IPO company. How do you headge

632
00:30:00,640 --> 00:30:03,680
Speaker 3: or diversified before those shares become liquid?

633
00:30:04,280 --> 00:30:06,600
Speaker 5: Well, yeah, so this is uh what we're talking about here.

634
00:30:06,600 --> 00:30:09,360
Speaker 5: Pre i PO means before this company goes public. And

635
00:30:09,400 --> 00:30:12,440
Speaker 5: so obviously this is a great situation, hopefully because the

636
00:30:12,480 --> 00:30:14,920
Speaker 5: company wouldn't do this if it wasn't confident that it

637
00:30:14,960 --> 00:30:18,320
Speaker 5: wasn't wasn't gonna uh make it put a good put

638
00:30:18,320 --> 00:30:20,720
Speaker 5: itself in a good situation by going public. So, uh,

639
00:30:20,720 --> 00:30:23,520
Speaker 5: this creates paper wealth and there are liquidity lockups with

640
00:30:23,560 --> 00:30:25,680
Speaker 5: this kind of stuff. So uh, before that i p

641
00:30:25,800 --> 00:30:27,560
Speaker 5: O you you know, then the problem here is that

642
00:30:27,600 --> 00:30:29,560
Speaker 5: you can't sit, you can't sell or short that those

643
00:30:29,920 --> 00:30:30,560
Speaker 5: the stock at all.

644
00:30:30,600 --> 00:30:32,200
Speaker 4: You really can't move around much at all.

645
00:30:32,440 --> 00:30:34,080
Speaker 5: So you're gonna want to look at what else you

646
00:30:34,120 --> 00:30:36,240
Speaker 5: can control, and it's got nothing to do with that

647
00:30:36,320 --> 00:30:39,560
Speaker 5: actual position, uh you know, so you're basically going to

648
00:30:39,600 --> 00:30:41,760
Speaker 5: look to to offset your other parts of your portfolio.

649
00:30:41,800 --> 00:30:43,800
Speaker 5: I would say double check your four oh one k.

650
00:30:43,920 --> 00:30:45,320
Speaker 5: First of all, make sure there isn't a bunch of

651
00:30:45,360 --> 00:30:46,440
Speaker 5: company stock in there.

652
00:30:46,880 --> 00:30:47,120
Speaker 4: Uh.

653
00:30:47,640 --> 00:30:50,880
Speaker 5: The danger here, of course, is being overexposed. And don't remember,

654
00:30:51,080 --> 00:30:53,160
Speaker 5: don't forget, it's not just about your investments. This is

655
00:30:53,200 --> 00:30:56,000
Speaker 5: also where your job is. So heaven forbid, if something

656
00:30:56,040 --> 00:30:58,200
Speaker 5: goes south with this company, then you've lost your job

657
00:30:58,240 --> 00:31:00,200
Speaker 5: and your your your shares and your four one k

658
00:31:00,440 --> 00:31:03,440
Speaker 5: and these i PO the pre i PO shares were

659
00:31:03,480 --> 00:31:05,800
Speaker 5: never a factor, so just be super careful. There are

660
00:31:05,920 --> 00:31:09,920
Speaker 5: liquidity programs out there that will facilitate private sales or

661
00:31:10,000 --> 00:31:12,320
Speaker 5: loans against private chairs. If you've really got a lot

662
00:31:12,360 --> 00:31:15,000
Speaker 5: of these, they may be willing to kind.

663
00:31:14,840 --> 00:31:15,960
Speaker 4: Of take a position against it.

664
00:31:16,040 --> 00:31:18,680
Speaker 5: Steep discounts and guess what these fees fees and fees.

665
00:31:19,200 --> 00:31:20,920
Speaker 5: Not an easy thing to look into, but you could

666
00:31:20,920 --> 00:31:23,880
Speaker 5: potentially do that. You can also talk to to your

667
00:31:24,040 --> 00:31:27,440
Speaker 5: fiduciary financial advisor about hedging this with derivatives if you're

668
00:31:27,440 --> 00:31:29,200
Speaker 5: allowed to do it. Sometimes there are company rules that

669
00:31:29,200 --> 00:31:31,160
Speaker 5: say you can't bet against it, which is effectively what's

670
00:31:31,200 --> 00:31:34,600
Speaker 5: this what this would be? But there are potential ways

671
00:31:34,600 --> 00:31:37,400
Speaker 5: out there to do that. Talk to your advisor. Okay, hope,

672
00:31:37,440 --> 00:31:39,400
Speaker 5: that helps. That's a big question. So we're gonna move

673
00:31:39,400 --> 00:31:41,840
Speaker 5: on now to Gary and Blue Ash.

674
00:31:41,880 --> 00:31:42,160
Speaker 3: Gary.

675
00:31:42,160 --> 00:31:45,640
Speaker 5: Gary's got some concerns about investing sustainably, but he still

676
00:31:45,640 --> 00:31:49,200
Speaker 5: wants accountability. So how do you verify these ESG funds

677
00:31:49,200 --> 00:31:51,200
Speaker 5: are doing what they claim? Bob, we haven't heard the ESG.

678
00:31:51,280 --> 00:31:52,720
Speaker 5: I've not heard this as a topic in a while,

679
00:31:52,760 --> 00:31:54,160
Speaker 5: so I'll be interested to hear what you have to say.

680
00:31:54,760 --> 00:31:58,440
Speaker 3: Well, feel free to disagree with what I'm about to say.

681
00:31:58,840 --> 00:32:02,160
Speaker 3: I don't like these things, and I never have. I

682
00:32:02,240 --> 00:32:05,560
Speaker 3: love the fact that Gary wants to get accountability from

683
00:32:05,600 --> 00:32:08,520
Speaker 3: these companies and understand what he owns and why and

684
00:32:08,600 --> 00:32:11,440
Speaker 3: make some decisions. Sounds like he wants to be actively

685
00:32:11,480 --> 00:32:14,120
Speaker 3: involved in a lot of these decisions, and I applaud that.

686
00:32:14,640 --> 00:32:17,680
Speaker 3: Let's first define what we're talking about here. ESG investing

687
00:32:17,760 --> 00:32:22,560
Speaker 3: means environmental, social and governance investing, so you're really looking at, hey,

688
00:32:22,560 --> 00:32:25,920
Speaker 3: how are these companies actually behaving in various areas and

689
00:32:26,040 --> 00:32:30,320
Speaker 3: does that align with my personal values. I think it's

690
00:32:30,440 --> 00:32:33,920
Speaker 3: very hard to just buy an ESG fund and just

691
00:32:34,000 --> 00:32:37,200
Speaker 3: assume that someone's out there checking all these boxes and

692
00:32:37,240 --> 00:32:40,440
Speaker 3: making sure these companies are doing everything you know, Gary

693
00:32:40,560 --> 00:32:43,280
Speaker 3: or I or Brian you want done with these companies.

694
00:32:43,360 --> 00:32:45,400
Speaker 3: Let me explain what I mean. If we look at

695
00:32:45,400 --> 00:32:49,240
Speaker 3: the environmental topic, we're talking about carbon emissions, energy use,

696
00:32:49,440 --> 00:32:52,520
Speaker 3: water usage, and pollutions. You know, how they handle their

697
00:32:52,520 --> 00:32:56,400
Speaker 3: waste management. Are they committed to climate initiatives. There's a

698
00:32:56,440 --> 00:32:58,560
Speaker 3: lot there to look at. I don't. I think it's

699
00:32:58,600 --> 00:33:04,360
Speaker 3: nearly impossible for everyone to be to agree on every

700
00:33:04,400 --> 00:33:07,280
Speaker 3: decision these companies make in all of those areas, and

701
00:33:07,320 --> 00:33:10,520
Speaker 3: we're just talking about environment. Next we get into social

702
00:33:10,720 --> 00:33:14,280
Speaker 3: labor practices, employee well being. How are we going to

703
00:33:14,360 --> 00:33:17,920
Speaker 3: know how the employees are feeling at a publicly traded company.

704
00:33:17,960 --> 00:33:20,280
Speaker 3: I don't think there's any way we can. Then you

705
00:33:20,320 --> 00:33:24,239
Speaker 3: get into hiring practices, diversity, equity and inclusion. Everybody has

706
00:33:24,280 --> 00:33:27,400
Speaker 3: a different definition of that human rights. And now the

707
00:33:27,520 --> 00:33:32,200
Speaker 3: supplyint the ethics of the supply chain suppliers to these companies.

708
00:33:32,360 --> 00:33:34,440
Speaker 3: There's a whole other layer of stuff you got to

709
00:33:34,440 --> 00:33:38,440
Speaker 3: dig into. And then from the governance standpoint board diversity

710
00:33:38,600 --> 00:33:43,840
Speaker 3: and structure, anti corruption and compliance policies, business ethics. In

711
00:33:43,880 --> 00:33:45,840
Speaker 3: other words, there's a lot to look at here.

712
00:33:46,040 --> 00:33:47,920
Speaker 5: I do kind of like that last g one I

713
00:33:47,960 --> 00:33:49,680
Speaker 5: kind of like the governance one. That's the only one

714
00:33:49,720 --> 00:33:51,920
Speaker 5: I ever put any stock in with these three s. Okay,

715
00:33:52,760 --> 00:33:56,719
Speaker 5: So here's my practical advice. I would get very specific

716
00:33:56,800 --> 00:33:59,920
Speaker 5: on maybe five to ten companies that you know well

717
00:34:00,160 --> 00:34:03,840
Speaker 5: or want to know well, and just read the annual reports,

718
00:34:03,960 --> 00:34:08,080
Speaker 5: go to shareholder meetings, engage with shareholder services, and if

719
00:34:08,120 --> 00:34:11,960
Speaker 5: you've got specific questions, ask them and see if you

720
00:34:12,040 --> 00:34:15,120
Speaker 5: get the questions coming the answers coming back that align

721
00:34:15,239 --> 00:34:16,719
Speaker 5: with your personal values.

722
00:34:16,760 --> 00:34:19,920
Speaker 3: Gary, And if the answers aligned, then I think you're

723
00:34:19,920 --> 00:34:23,399
Speaker 3: good to go. But I think people really oversimplify this

724
00:34:23,480 --> 00:34:27,720
Speaker 3: by just buying an ESG fund and then assuming everything's

725
00:34:27,800 --> 00:34:31,240
Speaker 3: hunky dory and we're investing in alignment with our values.

726
00:34:31,280 --> 00:34:32,240
Speaker 3: What say you, Brian?

727
00:34:32,560 --> 00:34:35,359
Speaker 5: You know, I don't like any of these label type things.

728
00:34:35,400 --> 00:34:38,359
Speaker 5: I mean, and I applaud the intent. I don't think

729
00:34:38,400 --> 00:34:40,279
Speaker 5: these are bad things to try to figure out a

730
00:34:40,320 --> 00:34:41,920
Speaker 5: way that you can do it. But at the end

731
00:34:41,960 --> 00:34:44,200
Speaker 5: of the day, this is a capitalist society and most

732
00:34:44,239 --> 00:34:47,160
Speaker 5: of these quote unquote ESG funds are nothing more than

733
00:34:47,160 --> 00:34:49,120
Speaker 5: a label slap. And I would also attach that to

734
00:34:49,160 --> 00:34:52,080
Speaker 5: the anti ESG approach here, which to me that was

735
00:34:52,080 --> 00:34:55,640
Speaker 5: always silly because we were all anties. Anti ESG means

736
00:34:55,640 --> 00:34:57,319
Speaker 5: you're not paying attention to it at all. You're not

737
00:34:57,400 --> 00:35:00,120
Speaker 5: looking for companies that are purposely violating these norms.

738
00:35:00,200 --> 00:35:01,680
Speaker 4: They're just not paying attention to it.

739
00:35:02,200 --> 00:35:04,600
Speaker 5: So anti ESG basically is the S and P five

740
00:35:04,680 --> 00:35:07,359
Speaker 5: hundred index, meaning that those factors do not factor into

741
00:35:07,400 --> 00:35:10,160
Speaker 5: the decision that that stock should be in the index.

742
00:35:10,239 --> 00:35:12,480
Speaker 4: So just labels. I don't think they have any impact.

743
00:35:12,560 --> 00:35:15,760
Speaker 5: And they also introduce extra layers of expense for companies

744
00:35:15,760 --> 00:35:19,000
Speaker 5: pursuing these things that will compress their profit margins. You

745
00:35:19,080 --> 00:35:23,799
Speaker 5: will see these these portfolios underperform despite the the good

746
00:35:23,840 --> 00:35:25,280
Speaker 5: intentions of the ESG approach.

747
00:35:25,840 --> 00:35:28,640
Speaker 3: All right, all right, we thoroughly beat that topic to death,

748
00:35:28,680 --> 00:35:32,600
Speaker 3: all right, Brian, Karen and Montgomery. She says, my husband

749
00:35:32,640 --> 00:35:35,000
Speaker 3: wants to retire next year, but I'm not ready to

750
00:35:35,040 --> 00:35:37,840
Speaker 3: stop working. How do you plan when one spouse is

751
00:35:37,880 --> 00:35:41,160
Speaker 3: emotionally done and the other isn't. And we're not talking

752
00:35:41,200 --> 00:35:44,080
Speaker 3: about done with the marriage, we're talking about done working. Yeah.

753
00:35:44,160 --> 00:35:46,520
Speaker 3: This comes up quite often, Brian.

754
00:35:46,400 --> 00:35:48,480
Speaker 5: Oh, every day, and in our offices this is kind

755
00:35:48,480 --> 00:35:50,160
Speaker 5: of why we have jobs. I often say that.

756
00:35:50,480 --> 00:35:52,719
Speaker 4: We are not financial advisors doing math all day long.

757
00:35:52,760 --> 00:35:55,800
Speaker 5: We're unlicensed marriage counselors with math in the background.

758
00:35:56,040 --> 00:35:56,640
Speaker 4: So yeah.

759
00:35:56,760 --> 00:35:59,320
Speaker 5: So there are studies from Fidelity and Vanguard Bob to

760
00:35:59,360 --> 00:36:01,520
Speaker 5: show that more than half of couples disagree on when

761
00:36:01,560 --> 00:36:04,520
Speaker 5: to retire. One's burned out, the other likes the purpose

762
00:36:04,560 --> 00:36:07,120
Speaker 5: and the routine. Well, the most important thing to do

763
00:36:07,200 --> 00:36:09,280
Speaker 5: here is the same thing you've been doing your entire marriage.

764
00:36:09,360 --> 00:36:09,640
Speaker 4: Talk.

765
00:36:09,880 --> 00:36:11,520
Speaker 5: Look each other in the eye and say, this is

766
00:36:11,560 --> 00:36:13,320
Speaker 5: what is in my brain with regard to my career

767
00:36:13,320 --> 00:36:15,400
Speaker 5: and the rest of my life, what's in yours, and

768
00:36:15,440 --> 00:36:17,680
Speaker 5: how do we put these things together? So what you'll

769
00:36:17,760 --> 00:36:20,360
Speaker 5: need The big question, of course is usually healthcare insurance.

770
00:36:20,560 --> 00:36:23,080
Speaker 5: If somebody's going to retire before Medicare at sixty five,

771
00:36:23,640 --> 00:36:25,720
Speaker 5: then the other needs to either be able to provide

772
00:36:25,719 --> 00:36:27,520
Speaker 5: that or you're going to be looking on the exchanges.

773
00:36:27,560 --> 00:36:28,600
Speaker 4: These are doable things.

774
00:36:28,719 --> 00:36:31,040
Speaker 5: Nobody likes writing a check for healthcare insurance, but it

775
00:36:31,120 --> 00:36:33,920
Speaker 5: is doable. But then make sure you understand I might

776
00:36:33,960 --> 00:36:36,080
Speaker 5: want to get away from this job, but if I

777
00:36:36,120 --> 00:36:38,080
Speaker 5: sit at home doing nothing, I'm going to drive both

778
00:36:38,120 --> 00:36:38,760
Speaker 5: of us nuts.

779
00:36:38,880 --> 00:36:41,000
Speaker 4: So be reasonable about how you're going to spend that time.

780
00:36:41,000 --> 00:36:44,480
Speaker 5: These are very accomplishable, solvable problems, but they all start

781
00:36:44,520 --> 00:36:45,239
Speaker 5: with communication.

782
00:36:46,200 --> 00:36:48,480
Speaker 3: Coming up next, I've got my two cents on what

783
00:36:48,560 --> 00:36:52,000
Speaker 3: I hope will be some simple, practical year end tax

784
00:36:52,080 --> 00:36:55,200
Speaker 3: planning ideas. You're listening to Simply Money, presented by all

785
00:36:55,200 --> 00:37:00,400
Speaker 3: Worth Financial on fifty five KRC the talk station Live in.

786
00:37:00,760 --> 00:37:03,680
Speaker 6: Let me tell you, so, the Internet is breeding evil,

787
00:37:03,840 --> 00:37:05,000
Speaker 6: breeding evil.

788
00:37:04,719 --> 00:37:06,720
Speaker 1: And TikTok is the main culprit.

789
00:37:06,840 --> 00:37:08,920
Speaker 6: And I don't know what's happening with TikTok, but that

790
00:37:09,040 --> 00:37:11,200
Speaker 6: damn thing needs to be sold now and it needs

791
00:37:11,239 --> 00:37:12,799
Speaker 6: to be cleaned up. And I don't want to hear

792
00:37:12,840 --> 00:37:16,000
Speaker 6: about free speech and everything else. It's a private company.

793
00:37:16,080 --> 00:37:18,960
Speaker 6: The company needs to clean it up because this is crazy,

794
00:37:19,120 --> 00:37:22,120
Speaker 6: between the communist Chinese and all the crap that people

795
00:37:22,160 --> 00:37:23,000
Speaker 6: put on this stuff.

796
00:37:23,040 --> 00:37:26,239
Speaker 1: Mark Levin tonight at ten oh six on fifty five

797
00:37:26,320 --> 00:37:30,000
Speaker 1: krs the talkstation. Hey, Brian Thumas was cybel.

798
00:37:30,280 --> 00:37:32,120
Speaker 2: I am so worried that next month I have to

799
00:37:32,200 --> 00:37:35,040
Speaker 2: choose between groceries for my kids or gas for my car.

800
00:37:35,280 --> 00:37:38,719
Speaker 1: Talk about it here fifty five krs the talkstation.

801
00:37:43,000 --> 00:37:45,520
Speaker 3: You're listening to Simply Money, said about all Worth Financial

802
00:37:45,560 --> 00:37:48,480
Speaker 3: on Bob's sponsorer along with Brian James. All Right, Brian,

803
00:37:48,560 --> 00:37:51,239
Speaker 3: let's tag tag team this one. Let's face it, it's

804
00:37:51,280 --> 00:37:53,880
Speaker 3: November fourth, we got less than two months less than

805
00:37:53,920 --> 00:37:57,600
Speaker 3: the year, and we're getting into holiday season, Thanksgiving, Christmas.

806
00:37:57,600 --> 00:38:00,600
Speaker 3: People are starting to get busy and the last thing

807
00:38:00,640 --> 00:38:03,279
Speaker 3: they want to think about is taxes. But now is

808
00:38:03,320 --> 00:38:06,760
Speaker 3: a great opportunity to do some year end tax planning.

809
00:38:06,800 --> 00:38:08,600
Speaker 3: So what I want to do tonight is just keep

810
00:38:08,680 --> 00:38:12,239
Speaker 3: it simple, talk about some things that don't require a

811
00:38:12,360 --> 00:38:15,280
Speaker 3: ton of analysis, a ton of trips to your CPA,

812
00:38:15,719 --> 00:38:18,839
Speaker 3: just some simple advice here. Let's start with a reminder

813
00:38:19,360 --> 00:38:22,400
Speaker 3: of long term capital gains rates. What I mean by

814
00:38:22,440 --> 00:38:25,400
Speaker 3: that for people married finally joined, if you have taxable

815
00:38:25,440 --> 00:38:29,719
Speaker 3: income of under ninety six seven hundred dollars, your long

816
00:38:29,800 --> 00:38:33,840
Speaker 3: term capital gain rate is zero. That's right. Zero. I

817
00:38:33,880 --> 00:38:36,560
Speaker 3: had this come up yesterday with a client. They're looking

818
00:38:36,600 --> 00:38:39,080
Speaker 3: to pull about ten grand out of their portfolio, and

819
00:38:39,120 --> 00:38:41,720
Speaker 3: this is one of these mutual funds that they've owned

820
00:38:41,760 --> 00:38:45,319
Speaker 3: for thirty years, low cost basis. We talk about lack

821
00:38:45,360 --> 00:38:48,320
Speaker 3: of tax control all the time, Well, I did happen

822
00:38:48,360 --> 00:38:51,040
Speaker 3: to have their twenty twenty four tax return pulled it

823
00:38:51,080 --> 00:38:53,960
Speaker 3: out and actually reviewed it and noticed that we had

824
00:38:54,000 --> 00:38:57,120
Speaker 3: a lost carry forward of over seventeen thousand dollars. So

825
00:38:57,160 --> 00:39:00,200
Speaker 3: we were able to pull that ten thousand dollars out

826
00:39:00,200 --> 00:39:04,120
Speaker 3: of that mutual fund and pay zero in capital gains

827
00:39:04,160 --> 00:39:07,160
Speaker 3: taxes even if they didn't have the loss carry forward.

828
00:39:07,840 --> 00:39:10,080
Speaker 3: If their income is low enough, we could have done it.

829
00:39:10,160 --> 00:39:13,120
Speaker 3: But you know that's one idea. Hey, I want to

830
00:39:13,120 --> 00:39:15,240
Speaker 3: throw in a thought on that. I knew you would

831
00:39:15,560 --> 00:39:18,000
Speaker 3: keep people clear on how that works.

832
00:39:18,000 --> 00:39:19,719
Speaker 5: So in other words, that what we're not saying is

833
00:39:19,719 --> 00:39:21,560
Speaker 5: that you can take a million dollars worth of capital

834
00:39:21,600 --> 00:39:23,920
Speaker 5: gain if your quote unquote income happens to be under

835
00:39:24,000 --> 00:39:26,920
Speaker 5: ninety six, the gain itself will factor in. So that

836
00:39:27,000 --> 00:39:29,720
Speaker 5: example Bob gave there means that they had their income

837
00:39:29,800 --> 00:39:32,040
Speaker 5: was low enough that the gain itself didn't add on

838
00:39:32,040 --> 00:39:34,200
Speaker 5: top of it. So can't take ten million dollars worth

839
00:39:34,200 --> 00:39:36,279
Speaker 5: of gains and pay zero taxes on it even though

840
00:39:36,320 --> 00:39:38,680
Speaker 5: you've hidden your income. But if you're in that situation,

841
00:39:39,200 --> 00:39:41,200
Speaker 5: absolutely I learn to understand it more and talk to

842
00:39:41,200 --> 00:39:42,320
Speaker 5: your advisor in your accountant.

843
00:39:42,760 --> 00:39:46,600
Speaker 3: That's a great disclaimer. Thanks for pointing that out, all right.

844
00:39:46,640 --> 00:39:49,799
Speaker 3: Another one is qualified charitable distributions. Let's face a lot

845
00:39:49,800 --> 00:39:52,279
Speaker 3: of folks out there probably getting letters they've gotten them

846
00:39:52,320 --> 00:39:55,200
Speaker 3: in the last thirty sixty ninety days about their qualify

847
00:39:55,360 --> 00:40:00,399
Speaker 3: or their requirementimum distribution from their IRA. What's so many

848
00:40:00,400 --> 00:40:02,800
Speaker 3: people don't understand is if you're over seventy and a

849
00:40:02,840 --> 00:40:06,719
Speaker 3: half years old, you can make charitable contributions directly from

850
00:40:06,800 --> 00:40:10,520
Speaker 3: your IRA, and it helps you know count toward that

851
00:40:10,560 --> 00:40:14,759
Speaker 3: required minimum distribution, and none of that money you give

852
00:40:14,800 --> 00:40:17,520
Speaker 3: away to charity even hits your tax return in the

853
00:40:17,520 --> 00:40:22,400
Speaker 3: way of taxable income. It's a vastly overlooked strategy that

854
00:40:22,440 --> 00:40:25,040
Speaker 3: I wish more people knew about and took advantage of.

855
00:40:25,160 --> 00:40:28,600
Speaker 3: So again, the default provision is just to write that

856
00:40:28,800 --> 00:40:31,440
Speaker 3: check or drop the fifty dollars bill and the offering

857
00:40:31,480 --> 00:40:34,400
Speaker 3: played at church. Be a little bit strategic about this,

858
00:40:34,480 --> 00:40:36,480
Speaker 3: and if you've got charities that you want to give

859
00:40:36,560 --> 00:40:39,359
Speaker 3: to heading into the last couple of months of the year,

860
00:40:39,800 --> 00:40:42,239
Speaker 3: coordinate that with your advisor and make sure you do

861
00:40:42,320 --> 00:40:44,359
Speaker 3: that in the most tax efficient way too.

862
00:40:45,800 --> 00:40:47,759
Speaker 4: Absolutely, and these are really things to you.

863
00:40:47,920 --> 00:40:50,279
Speaker 5: You've got some time left here, so we've got just

864
00:40:50,360 --> 00:40:52,239
Speaker 5: eight let's say you've got six weeks left.

865
00:40:52,280 --> 00:40:54,240
Speaker 4: You want to get all this stuff done by mid December.

866
00:40:54,280 --> 00:40:56,640
Speaker 5: These are generally not things you can do between Christmas

867
00:40:56,680 --> 00:40:59,160
Speaker 5: and New Year's so give your advisors, your partners, your

868
00:40:59,160 --> 00:41:01,520
Speaker 5: accounting some time to execute on them, all.

869
00:41:01,480 --> 00:41:03,320
Speaker 3: Right, And a third one real quick here in a

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Speaker 3: few seconds we got left. Now's the time to have

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Speaker 3: your fiduciary advisor pull out your actual portfolio and look

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Speaker 3: for some ways to offset gains and losses. There might

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00:41:13,280 --> 00:41:16,520
Speaker 3: be some things in your portfolio that, frankly, it's just

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00:41:16,600 --> 00:41:20,080
Speaker 3: time to let go of and offset maybe some losses

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00:41:20,160 --> 00:41:22,600
Speaker 3: with some a few shares of some things that have

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00:41:22,680 --> 00:41:26,120
Speaker 3: done well, you know, rebalance your portfolio in a way

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00:41:26,160 --> 00:41:30,120
Speaker 3: that minimizes your taxes heading into twenty twenty six. Thanks

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00:41:30,120 --> 00:41:32,680
Speaker 3: for listening tonight. You've been listening to Simply Money, presented

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00:41:32,680 --> 00:41:36,240
Speaker 3: by all Worth Financial on fifty five KRC the talk station.

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Speaker 1: Some people only hear what they want to hear these days,

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Speaker 1: you need to keep an open mind. We only deal

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00:41:43,320 --> 00:41:46,080
Speaker 1: in what you need to hear. Everybody needs the truth

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Speaker 1: of the facts. You need the information that matters. We

884
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Speaker 1: need to know if there were warning signs. You need

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Speaker 1: of life in the no twenty four hours a day,

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Speaker 1: you don't need to go anywhere else, And that's something

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Speaker 1: that you already know for certain. What fifty five jr

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Speaker 1: z Z talkstation, Hey, I am Brand