00:00:02 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News, Bloomberg Money. 00:00:12 Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keene with Scarlet Foo. Join us each week for a smart look at the forces shaping your financial life. On Personal Finance, on Retirement, and Wealth Management. We will explore how people are earning, investing, and building wealth. We are live Fridays at noon Eastern on Bloomberg Television. Subscribe to the podcast wherever you listen, and as always on the Bloomberg Terminal and the Bloomberg Business app. 00:00:55 Speaker 3: Good Moon. 00:00:56 Speaker 2: Everyone is Bloomberg Money, on Personal Finance, on Retirement, on health Manager as well. Scott Fu and Tom King, thank you for being with us today. A great set of people coming up. At first, we got to talk a FED meeting next week, and it's got to have something to do with my personal finance. 00:01:11 Speaker 3: I don't know what yet. 00:01:12 Speaker 4: They're going to talk about inflation, it's definitely going to come. 00:01:14 Speaker 3: Are they going to raise rates? 00:01:16 Speaker 5: Uh? 00:01:16 Speaker 1: Some people think so. 00:01:17 Speaker 2: What the rate market district? Tho'k at first Personal Finance the rate market this week? 00:01:21 Speaker 3: What does it? Exactly? Due to the housing market. 00:01:23 Speaker 4: It makes it more expensive if you're looking to get a mortgage. Mortgage rates have creep back up again. 00:01:27 Speaker 2: And of course the whole thing here is everything's getting more expensive. We talked about this for week after week, but the. 00:01:33 Speaker 4: Fact gas prices are more expensive now because of oil. 00:01:36 Speaker 3: It was an eventful week. 00:01:37 Speaker 4: It's certainly stopped by the fact that Lebron James is going to the filly. 00:01:41 Speaker 3: All the clock up. That took folks nineteen seconds. 00:01:46 Speaker 2: You're about the script right now, return to Akron Ohio's Nikki Waller here. 00:01:51 Speaker 3: You almost canceled being on this show, right Yeah, I had to drive to Philly. Are you going to Philly? Did you just assume he go back to Cleveland? 00:01:59 Speaker 1: I was home. 00:02:00 Speaker 6: I mean, what a great pre retirement move. 00:02:03 Speaker 2: The control room's going what in God's name of the two on Bloomberg Money. Here's what we're doing. Edward Jardenny is in the building. It's incredibly important to speak to ed Yard Denny. He is optimistic about the Roaring twenties. He is optimistic that the bond vigilantes won't get. 00:02:18 Speaker 4: Us Scarlett and later this hour was week with Tricia Scarlatta. She's head of Education Savings at JP Morgan Asset Management. Just a few more weeks ago before it's back to school, so saving for college and all things five twenty nine are top of thee. 00:02:30 Speaker 2: And I love her because she's got huge enthusiasm. Most people in education are boring, boring, boring, boring, and Tricia just kills it. I mean as a real enthusiasm there about taking hundreds of thousands of dollars from. 00:02:43 Speaker 4: Us, well, you know, I mean, she's got to be the cheerleader for everyone's saving. 00:02:46 Speaker 2: Let's look at our first discussion here with good Bloomberg people. Nikki Waller is with us from personal financier, and you get to them two important stories there at a moment. Stacy Vanix Smith with us today as well. Everybody's business are wonderful podcasts. And David Gerr has chosen to be with us. And this is after driving by Reds and me. You came all the way back. 00:03:08 Speaker 3: I had to be here. The Lineyer's like the odyssey a mile long. 00:03:11 Speaker 7: I was driving an odyssey as it was anyway, Yes. 00:03:14 Speaker 1: It's likes good. 00:03:16 Speaker 2: This came up this week out of the blue, and we're totally we don't just scripts here. 00:03:20 Speaker 3: David doesn't want to go throw I don't gridlock gridlock. 00:03:24 Speaker 2: Do we are we rooting for gridlock in twenty twenty seven. 00:03:29 Speaker 3: Oh, that's a great question. And Washington are just broadly speaking. Broadly speaking, but in Washington, the Washington and David. 00:03:36 Speaker 7: I think we're facing a lot of gridlock here as we get closer and closer to the election. Look, there's talk here of a government shutdown in October of this year. We just had this vote on a war powers resolution in the House. We saw four Republicans come over to join their Democrats on the other side of the isle. I think that people are aware of the fact that given the pressures that we're seeing overseas now manifest and domestic pressures as well, it's it's unlikely that we're going to see a lot of movement and watch. 00:03:58 Speaker 1: So I was speak of domestic pressures. 00:03:59 Speaker 4: Teriffs are back, David and just white President Trump's claim that other countries pay for it. The duties are all basically born by American companies and at the end of the day, American consumers absolutely right. 00:04:10 Speaker 7: So we see the present using Section three or one of that Trade Act of nineteen seventy four to impose ten to twelve and a half percent tariffs on sixty countries and more perhaps are on the way here. Look, it's an interesting moment at which this is happening. You're going to talk about inflation. I'm sure over the course of the show we know that these are going to be inflationary. 00:04:26 Speaker 1: It is a choice, to say. 00:04:27 Speaker 7: The least that the administration is doing this is they look at this war in the Middle East widening and lasting longer than they thought it would be. I think it's still incumbent upon them to try to make the sale to explain to the American people why this is the route that they're going down, these latest tariffs on human rights grounds at least a name, and we'll see sort of the American people. 00:04:44 Speaker 3: I think people are numbed. Were numbed into the summer. 00:04:47 Speaker 4: They're customed to a lot of things flying around. Absolutely, but it is a picture of economic anxiety, and you see it in the price action and Nikki. It's fascinating to see how people respond, especially young people, which is a real picture of it. Dreams right, you've got financial nihilism on the one end, and then you've got what some people are calling retirement maxing on the other end. 00:05:07 Speaker 6: Yes, we took a look this week at this cohort of gen z who are not the ones on prediction markets, who are not the ones taking these yolo bets in the stock market. 00:05:17 Speaker 1: But instead they are, and we use this with. 00:05:19 Speaker 6: Our tongue in cheek, a little bit retirement maxing. And they're putting away money into savings rather than spending in the moment, sometimes even ignoring them us most of them, not yet because around people under thirty, yeah, sure that'll take care of your excess emerging. But yeah, people putting into iras and their four one case as much as they can because they don't know what's coming ahead. 00:05:46 Speaker 4: Right, And this idea that they're not even spending on themselves because they're just saving in every way, Stacy, you have written or you've written about, and you've talked about on your podcast, this idea that Americans are spending less time on enjoying themselves, on spending for themselves recreational products. There's something called funflation taking place. 00:06:04 Speaker 8: Yes, there's a little bit of funflation taking place because things have gotten so expensive. Obviously since the pandemic, we've spent a lot more money on experiences rather than just goods. We've we've tended to spend on services. Demand for services is up, prices for services are up. Even going to see The Odyssey this weekend could cost. 00:06:22 Speaker 9: A lot of money. 00:06:23 Speaker 8: The tickets for IMAX are on sale on the secondary market for several hundred dollars. 00:06:27 Speaker 9: But this, I mean, if you have kids. 00:06:29 Speaker 8: For instance, just going out for ice cream, just going out, you know, to try to movie and pizza, can can easily go into the hurre. 00:06:36 Speaker 2: Toptic two hundred dollars and Brooklyn ones going to going to the movies, right, got a whole meal at the the whole mail and all that stagey. 00:06:43 Speaker 3: I got to ask you. 00:06:44 Speaker 2: I talked to Nashville today, I talked to Austin, Texas. 00:06:47 Speaker 3: You know Boise Cold with Micron and the boom there. I mean, part of. 00:06:52 Speaker 2: This nation has explosively boom cities, don't they. 00:06:56 Speaker 9: Oh yeah, yeah. 00:06:57 Speaker 8: I grew up in Boise and right now everyone's talking about them Micron millionaires. 00:07:01 Speaker 1: So Micron is based. 00:07:02 Speaker 3: In Should we congratulate you? 00:07:04 Speaker 8: I tragically, I'm not a micro' sure I did. 00:07:10 Speaker 9: I went into journalism. 00:07:11 Speaker 8: I don't know what I was thinking, but yeah, I mean it's the it's one of the biggest employers in the state. It's been making ship since nineteen seventy two, a lot of ups and downs, but now thanks to you, AI. I mean, it's just it's going not to say. 00:07:24 Speaker 3: I want to get this in. It's just too important. 00:07:26 Speaker 2: We do personal finance, we do retirement, we do wealth management, and Nikki Waller and Suzanne Willie have without question the essay of the day. It comes to Marlin over at Fidelity. I was shocked at the chart the jump condition in healthcare costs for retirees. 00:07:42 Speaker 6: Yeah, it is, absolutely, It's been rising for years. 00:07:45 Speaker 1: And what we're seeing is that. 00:07:47 Speaker 6: If you are retiring this year, your health cost that you will pay out of pocket, if you're a couple, it's up to three hundred and seventy one thousand dollars. That is an almost eight percent jump from last year. 00:07:58 Speaker 2: Is supposed to be almost like free, like fifteen thousand dollars. 00:08:02 Speaker 1: Yeah, no, that doesn't happen anymore. 00:08:03 Speaker 4: And if you're a genetser like David Gurrow myself, you're also thinking about really paying for your parents' care and saving for your kids college tuition. 00:08:10 Speaker 1: At the same time. So this just adds to it. We'll be working. 00:08:12 Speaker 7: Forever incredibly don't think yes, I agree, Okay, David Gurrow, thank you so much, thank you for coming in. 00:08:18 Speaker 2: Nice to have you next time and bring something from Red Side and maybe with you. Stacy Vanixmith thinking well or thank you so much as well. You know, I look at this and I know the theme of the show. It should be called Bloomberg Inflation. It should be the. 00:08:31 Speaker 1: You know brand. 00:08:34 Speaker 3: But this has been a really stressful week. 00:08:36 Speaker 2: I mean, yeah, I'm sorry that Wednesday it was like vibrating, I know. 00:08:40 Speaker 4: But it's calmed down a little bit here on this Friday, and you know, next week we've got a lot to look ahead to, especially this hyperscaler earnings, because it looks like AI is driving this entire economy. 00:08:49 Speaker 2: And everybody involved with Bloomberg money, retirement, wealth management, they all own it, don't they. We don't want we're going to talk about that. We have a wonderful lineup here coming up. Edward Yardeni of your Denning research. He is definitive across the linkage of economics into the markets. 00:09:06 Speaker 3: He is a true decade optimist. 00:09:09 Speaker 2: And your Denny on these oring twenties from New York City, it is Bloomberg Money this weekend. 00:09:19 Speaker 3: Here it ago. I'm not now maybe I'll go. 00:09:28 Speaker 2: You're listening to Bloomberg Money, stay with us with more to come after this. 00:09:38 Speaker 3: Bloomberg Money. 00:09:39 Speaker 2: A perfect Friday in New York City. We had someone in from Austin to the scarlet one hundred and five degrees. Hundred five degrees, they said in Austin some of the South. You know you expect it as well, but did you get your utility bill? 00:09:52 Speaker 3: For what? 00:09:52 Speaker 1: I want to look at it? 00:09:53 Speaker 3: I looked at it last night. It's painful. 00:09:55 Speaker 2: Yeah, after thought of the air conditioning twenty fourth and for thirty days in a row. 00:10:02 Speaker 3: Let's do this. 00:10:02 Speaker 2: Let's look at inflation, look at our optimism within the markets. 00:10:05 Speaker 3: Joining us now definitive on Wall Street. 00:10:08 Speaker 5: It's C. J. 00:10:08 Speaker 3: Lawrence. 00:10:09 Speaker 2: Just a few years ago he helped invent the synthesis of economics into stock market analysis. Ed Yard Danny joins us your Denny research Ed. We got a one hour conversation. 00:10:19 Speaker 3: We're going to cram in here. 00:10:21 Speaker 2: I got a first go to the therapy that's needed as you go to retirement, which is you've got Max, Chloe, Cooper and Bailey at the Yard Denning House. 00:10:31 Speaker 3: It's a four dog night, Yeah, it certainly is. 00:10:34 Speaker 10: It's their king Charles Cavaliers and the cash potato dogs are They're always on the couch and they're sleeping. 00:10:40 Speaker 2: What are the canel fees to do? I mean, the vet bill must be just like seriously off. 00:10:44 Speaker 10: But child, you have to get health insurance for your dogs. I mean it's it's that that's your Bloomberg? Were any advice? Thank you very much. 00:10:54 Speaker 3: Here let me go to the chart right now. 00:10:55 Speaker 2: Pull up an important chart here coming out of COVID. In an our over of twenty two, a guy named Ankomport in the chart area in Yar Denny and the Economics and Finance said, courage by here, what did you see in October twenty two that gives you continued confidence in the market. 00:11:15 Speaker 10: Well, October twenty two was a very strange bear market. Usually bear markets are associated with recessions. There was no recession. As a matter of fact. At the time, I kept saying that we are experiencing the most widely anticipated recession of all times. That just isn't going to happen. It was the goodeaux recession, if you will. I just kept betting on the resilience of the economy, and so I kind of viewed the bear market as the aberration rather than the economy, which remained very strong. The earnings were holding up reasonably well, so I kind of viewed that as a panic attack. Now, look, there were good reasons for concerns. The Fed was raising interest rates from zero to five point five percent of the Fed funds rate, the bond dealer was going up. Oil price has got a big spike, and yet the resiliency economy came through remarkably. 00:12:04 Speaker 3: Well. 00:12:05 Speaker 10: We were betting on that, and we're still betting on the resilience of the economy. 00:12:09 Speaker 4: Yeah, So I want to take it to what we're seeing right now. Because you said bonnialds were going up, oil prices are going up. That's exactly what's happening now. The stock market has kind of slowed down a little bit. So the parallels between then and now, one could say is noteworthy. 00:12:23 Speaker 10: Well, there's definitely parallels, but one of the big differences is earnings. We've got what I call you know, everybody talks about FOMO fear of missing out. I'm talking about FEMO and that is fabulous earnings momentum. We didn't have that back in twenty twenty two. And it was really at the end of twenty twenty twenty November that we suddenly had chat GPT and AI revolution just starting. 00:12:49 Speaker 3: And the arc of this. 00:12:51 Speaker 2: And I just finished Justin BER's wonderful book on Ned Johnson and you know the industry from Arisa nineteen seventy four forward. My basic take is we've read tionalized in ownership of bonds, which has been really difficult since twenty two. Since twenty one as well, is the basic psychology of retirement now afraid of stocks. 00:13:13 Speaker 3: I don't think so. I think actually quite the opposite. 00:13:16 Speaker 10: I think a lot of my friends are retiring where the baby boomers. I'm still working for a living because I don't play golf, so I don't know what I would do with myself. I know by the way I get seasick on cruises. My friends are all going on cruises. They used to go one every three years, now they go three a year. And I get text messages for them saying, I don't know what you're doing, but keep this market going up because we're spending money like crazy and. 00:13:40 Speaker 2: Are not worthing suns. Last week's Girl it was brilliant on this setting. The stock market's become the American retirements It absolutely ends. 00:13:49 Speaker 10: Do you know that the baby boomers have ninety trillion dollars trillion trillion dollars of net worth and by the way, there's still some people left from the so called silent generation older than the Baby Boomers. They have twenty trillion dollars. So we're talking over one hundred trillion dollars of retirement net worth assets for the largest generation ever that is retiring. 00:14:13 Speaker 1: Are they going to use that? 00:14:14 Speaker 4: Are they going to actualize that, or are they going to just pass it on to their You know, the. 00:14:18 Speaker 10: Kids didn't listen and they did they didn't like we didn't like their friends, and they were noisy. 00:14:22 Speaker 3: So why leave them anything? Just spend like crazy. 00:14:26 Speaker 10: But look, a lot of people have been talking about the k economy that you know, the rich are getting rich or the poor are getting poor. I think that's missus. What's really going on, and that's the demography. We've got a very very well off Baby Boom generation and they're helping their younger children and grandchildren. The affordability crisis is really old versus young retiring people. They don't really care if the Fed titans retiring people really don't care much about the labor market because they're retired. All they really care about really is the stock market. How should our audience of retirement, of personal finance, how should they synthesize the FED madness? You and I remember when Arthur Burns had smoke coming out of the pipe and we interpreted that. 00:15:12 Speaker 3: Now we've got this parlor game. 00:15:14 Speaker 2: How does ed your Denny filter that if it's for long term investment. 00:15:19 Speaker 10: Well, I think you focus on the economy, if you believe in the resilience of the economy, if you believe that the labor market is in balance. We got a four point three percent unemployment rate, which is awfully good. 00:15:31 Speaker 3: We have an inflation problem. 00:15:32 Speaker 10: The FED is going to have to probably raise interest rates at least once, maybe a second time, maybe even a third time, according to where the two year treasury no yield is right now, I think you kind of grin and Barrett and try to enjoy your retirement life, because I think the market will continue to defy the bears, because the economy will continue to defy the pessimists. 00:15:57 Speaker 4: You were saying that the boomers don't care about the FED raising rate. They're going to enjoy their retirement. 00:16:01 Speaker 1: I'm not a boomer. 00:16:02 Speaker 4: I'm a gen xer, so I got to work for longer. And I'm wondering whether a higher for longer interest rates means that I have to rethink, reassess, pivot my investment strategy. 00:16:12 Speaker 10: Well, the short answer is yes, But I'm not a big fan of the higher for longer idea about interest rates. I think interest rates are back to normal. In other words, four to five ten year treasury body is a sign of a very healthy economy. It's it's a yield that made sense before the Great Financial Crisis. The aberration higher for longer implies we're going to be going back to the zero. I see what, You're closer to zero interest rates? 00:16:37 Speaker 1: This is it, This is this is probably the abnormal. 00:16:40 Speaker 10: Yeah, now, six six, six and a half percent, seven percent mortgage rates came awfully high to a lot of people compared to what compared to where they were when the economy wasn't doing so well. 00:16:49 Speaker 2: And I know that you're seeing the odyssey. I guess it's tonight. You're going to see Friday today. 00:16:54 Speaker 3: They don't know that you were writing a. 00:16:55 Speaker 2: Newsletter in Sparta a few years ago. We all know that the nineteen twenties Roaring twenties, it wasn't pretty. What happens after the Yardeni Roaring twenties of this twenty first. 00:17:08 Speaker 10: Century, Yeah, I'm trying to sort that out now. I think that if the Roaring twenty twenties works, and then in other words, that the economy doesn't have a recession, the stock market continues to go up. I've got ten thousands on the S and P five hundred by the end of the decade. If that works, there's no particular reason why it couldn't be the Roaring twenty thirties. As a matter of fact, that talking about a decade is roaring. That's what the stock market usually does during decades. I've only been a few decades where the market was just kind of flat, where it was a nothing kind of environment, And certainly that was the nineteen thirties were terrible, and the nineteen seventies were no picnic, and then the period around the Great Financial Crisis was So We've had decades where you made nothing, but there have been lots of decades where the market's done very well. 00:18:07 Speaker 2: Not just the nineteen twenties, be nice to the nineteen seventies. We had Bob Seger and so we got through it somehow, Ede and he's with us, and we'll continue with this. 00:18:16 Speaker 4: You're bullish on the equity market, You've long been bullish on the equity market. You talk about boomers, this generation that is feeling pretty good with the giche that they've seen. What'll surprise other people about how you spend, how you save money given what has happened. 00:18:30 Speaker 10: Well, I found over the years that I can't really trade, I can't really manage my own money because I'm too busy doing. 00:18:40 Speaker 3: My day job. 00:18:41 Speaker 10: And the other thing is there's been kind of a conflict of interest if my portfolio suddenly is thinking and turns me pessimistic, and then I'm writing pessimistic, and it's kind of just reflecting my own personal angst. So I try to basically stay an ETFs and. 00:18:58 Speaker 3: Keep things somewhat liquid. 00:19:00 Speaker 10: Also have stocks and bonds, but mostly in an ETF portfolio. 00:19:04 Speaker 4: How far out do you go? How colorful do you go to your ETFs? 00:19:07 Speaker 10: Well, you know, as I as I get old, as I get older, I don't need bonds that go to for thirty years, so maybe, you know, maybe I should do that. Maybe I think you should say my triple leveraged all cash, it would be secure. 00:19:19 Speaker 3: Yeah. 00:19:20 Speaker 10: But basically, I believe in the market. I believe that, you know, the S and P five hundred has been awfully good, and even better has been the Nasdaq one hundred. Technology has been a leading sector in our economy. 00:19:35 Speaker 4: Okay, So it looks like growth all the way for doctor Eduard Denny. 00:19:37 Speaker 10: Yeah, and I think you know a lot of these so called Trump accounts probably will get. 00:19:41 Speaker 3: Invested that way. 00:19:42 Speaker 4: All right, of your Denny Research, Bloomberg Money. 00:19:50 Speaker 2: Good afternoon everyone, Tom keenan scarlet. If we've got to do a data check, it's not as frenzy as Wednesday or Thursday, but you know, there it is. 00:19:56 Speaker 4: It's calmed down quite a bit. In fact, we started the day kind of unchanged. Now we're at session highs the S and P five hundred gaining two thirds of one percent for the week. 00:20:04 Speaker 1: However, we're still looking at two straight. 00:20:06 Speaker 4: Weeks of losses and the Vics coming down to seventeen and a half. 00:20:09 Speaker 2: John gallibed seaport he had thirty four percent. I believe it is of SPX is next week's number. He is shape huge renumber cross hand set is the way we roll. We look at equities, bonds, currencies, commodities. Oil pulls back. That's American oil from a ninety two back to eighty eight. D xy premnch solid. Your strong dollar watched again over the weekend, and again equity markets are up today. 00:20:33 Speaker 4: All right, Well, you know the thing that so many families save for higher education, It's in trouble. Costs are out of control, schools are closing, and Americans are increasingly questioning the return on investment of a college degree. This was the thrust of a Bloomberg News story written by Liam Knox, our education policy reporter who finds himself in New York. 00:20:51 Speaker 1: So we brought him in. Thank you so much, Liam. 00:20:53 Speaker 4: Having it so, I want to focus on grad school programs, which you recently wrote about. Master's and PhD programs are in even bigger trouble than college programs as a whole. 00:21:02 Speaker 1: Why is that? 00:21:03 Speaker 11: Well, there are many factors to that, but right now, chief among them is President Donald Trump. The Trump administration has been working to reshape higher education in general, but a kind of perfect storm of political threats has hit master's programs and PhD programs especially hard. There's the crackdown on student visa applicants and international students, who make up a disproportionate amount of grad students in this country compared to undergrads. There is the curtailing of federal research money and the huge historic uncertainty around that relationship between the federal government and research universities, which are hitting grad programs especially hard, PhD programs in particular, but also master's programs, particularly in stem fields. And then there's also new strict limits on federal lending for grad students who used to be able to borrow practically unlimited amounts of money to attend grad school and are now going to have some pretty strict new caps on that lending. 00:22:02 Speaker 4: And a lot of people say that it was those uncapped loans that kind of fueled the rise of grad school programs, making them the cash cow for universities. I actually recently sat down with Ken Ridguero of a cent Funding about student borrowing from the private loan perspective, because they're a private lender. 00:22:16 Speaker 1: Let's take a listen, and. 00:22:18 Speaker 12: About fifty to seventy five percent of the student situation. The private sector can support the student with all the borrowing they need at rates that are either a little less than the current federal loan or a little bit higher than the federal loan. 00:22:34 Speaker 4: Why is there a difference in the rate that some private lenders would charge versus the federal government. 00:22:40 Speaker 12: The federal government doesn't pull credit. Credit is priced relative to the expectation of repayment. So when there's a high expectation of repayment, then we can give very very low interest rates lower than the federal government. 00:22:55 Speaker 4: Okay, so the economics are clearly changing for a grad school. What are the schools themselves doing in response to this? How are they dealing with this? 00:23:03 Speaker 11: Some of the wealthiest schools are able to kind of be more flexible, and some of them are actually setting up their own federal loan programs with rather their own loan programs to replace federal landing streams. Yale at this, You Pen did this, and Harvard is doing it. Others are going to be hedging by enrolling more undergraduate students. The ones that can do that, that have deep applicant pools, big brand names, money to expand physically their campuses. Colombia's doing this the University of Chicago, Dartmouth College, other schools that don't have the same kinds of brand name recognition. They're setting up online programs, cheaper programs. 00:23:40 Speaker 1: And things like AI. 00:23:41 Speaker 11: But a lot of colleges are stretched too thin to really adapt and are going to really feel this hit them very hard financially. 00:23:48 Speaker 4: All Right, they're going to have to come up with some solution. Liam Knox, thank you so much. Our education policy reporter normally in Washington, but here in New York for the day, came. 00:23:55 Speaker 3: Into the office. He did massive work from office. It's a whole new thing. 00:24:00 Speaker 1: We appreciate it. 00:24:00 Speaker 2: We appreciate it. When we put Bloomberg money together. One of the first names I said is we have to have Tricia Scarlatta on. 00:24:08 Speaker 3: She's head of Education Savings at JP Morgan Boring. 00:24:12 Speaker 2: Like articles in five twenty nine's in this she brings an energy and verve to this agony like no one I know. 00:24:20 Speaker 3: We're thrilled she could join us today. 00:24:23 Speaker 2: Why is Wellesley one hundred thousand bucks a room board intuition? 00:24:27 Speaker 9: He started so nicely, Tom, I think, look because people want to go there, because everybody sees you kids on social media having a great time, and every kid wants to experience the same thing. When there's demand, there's demand, people will pay. 00:24:40 Speaker 2: So there's a top one hundred schools, the top two hundred and fifty schools, there's a. 00:24:44 Speaker 9: Top everything school don't if you read you could see there's top party schools. There's top schools for degrees, and there's top schools for experiences. So the competition is out there and there are people that pay. 00:24:55 Speaker 2: I mean a school like Cornell or Wellesley, Scarlett. You look at it, what twenty app cancer one gets in. 00:25:01 Speaker 1: I think that ratio is a lot smaller than I think. 00:25:03 Speaker 9: It is a lot smaller. 00:25:04 Speaker 1: Yeah, that's no work close. Okay. 00:25:06 Speaker 4: My question is, given how much Wellsley or Cornell costs right now, five twenty nine plans are meant to help people save to pay up for that. Do we need the five twenty nine plans to do much more than what they're currently built to do. 00:25:18 Speaker 5: No. 00:25:19 Speaker 9: I think if you're doing it the right way, I think what's the right way. The right way is starting as early as possible, right, And so that's the problem is is that most people just avoid it. They and look, Also, problem is life is expensive, and it's hard to balance all these things, retirement, saving for emergency, saving for college. But if you start early right and save often, you can do it. But the issue is people don't start early enough. They don't they don't actually save and invest early enough. So I do think that they can help you get there for sure. I think the responsibility of parents, though, is also being realistic. Know what you can afford. Not everybody body has to go to Welles. Not everybody has to go to the fancy school exactly. There's plenty of options. 00:26:05 Speaker 3: What's the everg school cost? 00:26:06 Speaker 2: If we're talking about the drama of one hundred thousand NYU willsy? 00:26:09 Speaker 3: What's the average. 00:26:10 Speaker 9: Cost of america average private school today? They say is sixty. 00:26:14 Speaker 3: Five thousand, sixty five. 00:26:16 Speaker 9: That's assuming somebody's getting it. 00:26:17 Speaker 2: We went out, we did a very careful survey. Here went out in the street. We dragged into the studio someone to talk about the future eighteen years out. Let's listen for me. 00:26:28 Speaker 13: I have a six month old son, Godulate, thank you, and the team college savings team was calculating for me how much it could cost in eighteen years to spend his seven figures get my Alma Mater pen and they estimate it could cost eight hundred thousand dollars. I think separating right, you have your retirement money, which was still really important to continue saving for what we see is a lot of families end up actually using their retirement money. 00:26:54 Speaker 2: He borrow from it because eight hundred thousand dollars and I mean, you know it's gabriella scientists of course. 00:27:01 Speaker 3: As well. So when you start, how do you start? 00:27:05 Speaker 9: Well, well, if you want to pay for eight hundred thousand dollars, you've got to be saving a couple thousand dollars a month. It's a lot of money. So how do you start. You start, like I said, when the baby programs. Yeah, and I think you start when the baby is born if you're expecting. Look that My my most favorite clients are the ones that are actually starting before they have a child, you know, and actually putting money away before. 00:27:27 Speaker 4: What a kiss, Just give us money for the kids. 00:27:29 Speaker 9: I'll tell you it's so true. So really, but here's the thing. You don't need to save one hundred percent. Anything that you're putting away and investing is going. 00:27:38 Speaker 1: To be less in the future. 00:27:40 Speaker 2: Well you just heard there, folks, with precious scarletta bronze. It this idea of saving for it all, particularly if you have multiple children like you're doing. 00:27:49 Speaker 3: You're like, oh, you think that's funny, Bronze that you don't have to do it all. 00:27:53 Speaker 9: You don't have to do it all, but be educated. Understand, like you mentioned earlier, the return on investment. You know, think about what is the return, what is the degram not saying one degree is less valuable than another, but monetarily there are differences. So so really go into it understanding what is the cost of this institution, what is the return going to be on that cost? And look at state schools, there's plenty of options. Kids also go half the time. They'll do start the first two years in a community school and then do another That's I know what it's a changing It's half the cost, it's half the cost. If you do that, no one cares where you went. They just want to know where you got your degree from. 00:28:33 Speaker 4: So this month also saw the introduction of the trump accounts for babies. Does that change a saving hierarchy for parents? I mean, which do prioritize if you can't put money into both? 00:28:43 Speaker 9: So that's a really great question, I think a Trump account should be looked at as a wealth building account, an early retirement plan. It should not really be looked at for an education savings plan. So for those who are going to get that seed money, you absolutely want to get that free money, that thousand dollars. Today there's about one point seven million people who have already gotten that right, and so there's a lot more that are eligible. So you want to get that seed money, for sure. But for people that have to make a choice between do I put money in a Trump account for education or do I go five twenty nine, in my opinion, you go five twenty nine because of the tax benefits, for sure. 00:29:20 Speaker 3: And then there's down the road. 00:29:21 Speaker 2: Let's look at Tricia skyl out of writing in January. Here, it's a money mustere for you this afternoon. One in six they own federal student loans with an average of thirty nine thy four hundred. It's four hundred and forty five dollars every month could go for other financial priorities. That's the reality, and some of those numbers are much bet higher for people. 00:29:42 Speaker 9: They're just putting off a lot because they have this debt. So you're graduating college you're earning an income. You can't move out, you can't move forward in life because you have this, and then you have you know, parents who take on debt take on more debt typically than the child, and they're delaying their retirement. 00:29:57 Speaker 4: So another question here about five twenty nine because I think there's a lot of misconceptions and misperceptions about it too. It's a lot more flexible than people realize. I mean, Tom can use it for his grandchildren too. 00:30:07 Speaker 9: You absolutely can. And another difference between a Trump account of a five to twenty nine a Trump account has to be opened by a parent or a guardian. Five twenty nine account. Anyone can open the account. 00:30:16 Speaker 4: I can open one to more if I wanted to go back to school. 00:30:18 Speaker 9: Yes, and you can open one for my kids if you'd like. So, I mean, look, I think it's a lot of flexibility. And again, I think the misconception is that it's only for two and four year institutions. It's much wider. 00:30:28 Speaker 1: Now. 00:30:29 Speaker 2: I just believe that Tricia Scarlotta has a statistic how many people pay full boat. 00:30:35 Speaker 9: It's about forty ish percent, probably one hundred percent of our audience. 00:30:40 Speaker 2: Yes, because you know, you look at the FAFSA, and you go, you're kidding me, And so then there you are. And if a kid can't put the puck in the net when you were full boat at Cornell for hockey, right. 00:30:52 Speaker 1: Oh, clearly, clearly. 00:30:54 Speaker 3: But if he's put the puck in the net, it's full boat. 00:30:57 Speaker 9: It's full boat, it really is. And a lot of these schools they you know, you get you get schools like Villanova, Boston College. They don't need to give any money because there are so many people lined up that want to go there. So the University of Michigan, you know, all those schools, they don't need to give them. 00:31:12 Speaker 3: We just want to go to Villanova because of Jalen. I mean, there's the reason. 00:31:16 Speaker 9: Day Yeah, I mean, you know I wanted to go to Villanova too, I didn't I want what's. 00:31:19 Speaker 2: The number one question you get on a road working for JP Morgan? What's the number one question in seminar as. 00:31:24 Speaker 9: You get interesting? Now, it's about the roth Ira. Everyone asks about the roth Ira. So people don't save enough and invest enough in a five to twenty nine account, but they're always so worried that I'm going to have too much money in the account. Why is that that is the biggest fear. I'm going to have too much money. Yet I don't put enough money away, but I'm worried I'm going to have too much. Then one of my options, so now it's it really has helped us having the flexibility of the roth Ira rollover, so that that this year is the biggest question is Okay, I'm going to if I'm overfunded, what can I do? And a great people feel much better that they could do the rollover. 00:31:56 Speaker 4: It just speaks again to the misperceptions and misconceptions out there about all of this. 00:32:00 Speaker 9: People are so afraid that they're going to put this money away and the kid's not going to go to school. Reality is seventy percent of kids go to school. And like you said, it's not just for It's not just two and four year institutions. You can vocation apprenticeship in economics. You can go to a park twenty nine for you. 00:32:14 Speaker 3: I need a five twenty. 00:32:15 Speaker 2: The biggest problem there is a five twenty nine used to be terribly restrictive. Right Fossils like me don't realize how constructive it is. 00:32:23 Speaker 9: Now correct And when you think about a qualified withdrawal, I always use this as an example. Every child's qualified withdrawal is going to be different. I have a child who's a musician going for music. A qualified withdrawal for him is the pedals for his equipment is the production because he's a music major. But then if I got an econ major, I can't use as a qualified withdrawal a guitar. But it is going to be what that child needs to get the degree is a qualified withdrawal. It could be books for sure, it could be computer. It's equipment, So think it's very expansive. 00:32:57 Speaker 2: Your child needs the even tied H nine need a new H nine pedal, it's exquisite. 00:33:04 Speaker 9: You've had my Conrad on. We go to Mike all the time. He's an incredible guitarist and he taels us what he doesn't need. 00:33:11 Speaker 1: Jisha, thank you so much for joining us today. 00:33:13 Speaker 9: My pleasure. 00:33:13 Speaker 4: Here's just scar a lot of JP Morgan Asset Management coming up on Bloomberg Money, the money, the man, the muse why people are digging deep into their pockets and splashing the cash to see the odyssey. 00:33:25 Speaker 1: You're going to go this weekend, right. 00:33:26 Speaker 2: I'm not going this weekend, but I got to admit across a cross section of people. 00:33:30 Speaker 4: What a huge was I loved it and I wasn't expecting to love it. This is Bloomberg Money, but Robert Pattinson speaking an American accent, that was odd. 00:33:39 Speaker 3: I'm not. 00:33:47 Speaker 2: You're listening to Bloomberg Money. Stay with us with more to come after this. 00:33:54 Speaker 4: Bloomberg Money is your destination for personal finance is a cross platform effort that extends beyond your TV, including our new digital hub at Bloomberg dot Com, Slash Money and tom. 00:34:04 Speaker 1: One of the. 00:34:04 Speaker 4: Highlights this week is about the odyssey the movie got to be and how some people are spending thousands of dollars to watch it in It's full Imax Blender amazing. 00:34:12 Speaker 2: I mean, I know IMAX from long, long ago, but people say this is the IMAX and you have to see it. 00:34:18 Speaker 4: Well, this was the first movie that was built with IMAX in mind. So joining us now to discuss as Bloomberg Money reporter Sarah Foster and Sarah you guys went out and talked to a whole bunch of people who like figured this out a year ago and booked their tickets in advance to see this on Imax. 00:34:33 Speaker 5: My colleagues Michelle and Ponza, Michael Barkley. They really tracked down some big spenders here. Some people were willing to spend five hundred dollars travel cross country to see this, as Chris Nolan intended. Others were even telling stories about how they were staying up all night, you know, going twenty four hours without sleep. What this really shows me is that when you have these big cultural events like this, young people in particular really are down to spend big and to just be in the moment. 00:35:02 Speaker 2: It's just kind of it's about this experiential thing. I mean, which angels to get. I mean, it's it's beyond me. But the answer is people like FIFA, like. 00:35:09 Speaker 1: The World Cup, or like meet Together. 00:35:11 Speaker 3: They like being together. They want to spend some money to do it. 00:35:13 Speaker 4: Right right, and they want to be able to hear the waves crashing in the movie again and it's full. I'm explunder because it's loud. It's like a spectacle. 00:35:21 Speaker 5: I think there's even something to be said about this new version of luxury. You know, only twenty five theaters in the US can show it the way krisnal And intended, only forty one worldwide. 00:35:32 Speaker 9: You know, it's almost a three hour runtime. 00:35:34 Speaker 3: For a movie. Is it three hours? 00:35:35 Speaker 1: You could be there and see it, you know you want? 00:35:37 Speaker 2: So when you saw Scarlet, was it were you dragon here? Where you're like, you know? Two hours thirty mins? 00:35:42 Speaker 1: That was a little skeptical. I went in there. I had to have a drink beforehand because I was like, I'm. 00:35:46 Speaker 2: Shut, okay, can you make a banner please? Food at the Odyssey had to have a beverage of her chore. 00:35:52 Speaker 4: I had to have a drink ahead of time. But I sat there through the whole thing and it was great. 00:35:56 Speaker 3: Our books for the week. This is a joy and an honor. 00:35:59 Speaker 2: You go toge if you're ever so lucky, you have a professor that can get it done. Barry Strauss is definitive at Cornell and you had him in class. What is it like to have the giant Barry Strauss lecturing you on the Trojan War? 00:36:13 Speaker 10: You know? 00:36:13 Speaker 4: It was pretty cool because I did not know about him beforehand. I took a class with him and another professor where they compared the Korean War and the Peloponnesian War. So it was like this cross historical analysis. It was really really interesting. And then you pick that book, so I know you can. 00:36:29 Speaker 2: I picked it out of the blue, but folks, I can't say enough about it. If you want to learn about this beyond Matt Damon's good looks, the answer is Professor Strauss of Cornell owns eye. 00:36:38 Speaker 4: Ground absolutely and his book separates reality from myth. Right Helen of Troy was a catalyst myth reality. It is about control of shipping routes in the agenc which Matt Damon actually says to Anne Hathaway in the movie. They kind of whisper it, but it's there. So I just gave you a spoiler. Your book is tied to the Odyssey and to Homer. My book of the Week is about Homer Wibson and his family and the people who created the show and wrote for the show, like co Conan O'Brien. It's called stupid TV. Be more funny how the golden era of the Simpsons changed television in America forever. 00:37:11 Speaker 1: Are you a Simpsons fan? 00:37:12 Speaker 5: I am a Simpsons fan. It's hard not to be. 00:37:14 Speaker 3: It's amazing how people are or they're not. 00:37:17 Speaker 9: Are you not? 00:37:18 Speaker 3: No, I'm a huge fan. Okay fan, I think the craft. 00:37:22 Speaker 2: I could go on all day about this, but you know, I mean, I think it's it's interesting. I was looking up Homer and they thought on AI, they thought I wanted Homer Simpsons, and. 00:37:31 Speaker 1: They would be right. That's what I picked. Who's your favorite Simpson's character. 00:37:37 Speaker 2: You could go all day about it. I think I like the soccer ones. We do the football ones on the soccer I mean, it's great, and I think you could do both. Frankie the heart of as it matters. You can do Homer Simpson and Homer from a few years ago with Odyssey as well. 00:37:52 Speaker 4: Homer Simpson is most people's favorite character. Mine is kind of a tangangial because it's a world building exercise. 00:37:57 Speaker 1: The Simpsons. 00:37:58 Speaker 4: I liked Patty and Selma, Marge's older sisters or the DMV. Yeah, and there they are at Orlando Universal. The expression is priceless. 00:38:07 Speaker 1: Tom. 00:38:08 Speaker 2: They look like we're in the Bloomberg money planning meeting Tuesday. That's what That's what it looks like. 00:38:15 Speaker 1: Sara, do you have a favorite Simpsons character? Definitely Lisa Oh. I identify with Lisa. She's ahead of her time, very similar to her. 00:38:24 Speaker 4: Lisa, by the way, predicted that Donald Trump would become president toward the Simpsons did overall, so you know, there's a lot of true telling in the Simpsons. Sarah Foster, Thank you, nank you, Bloomberg Money reporter Sarah Foster. For the latest reviews and recommendations from Bloomberg. Subscribe to the on Books newsletter. 00:38:42 Speaker 2: Welcome back to Celebrity Loadstone. It's sound Kay with Scarlet Fruit. We've been talking about some of the people that like to listen to us on the radio, Scarlett in the Morning and myself as well, and of course here on television, and it's just sort of like humbling, like they want to know about economics, finance, sort of finance and also wealth management. 00:39:02 Speaker 4: It's a lot of people are emailing you out of the blue who like I that's great. 00:39:08 Speaker 2: One day, I'm at JFK and I'm by the luggage wrap next to this girl and everyone's looking at me, and then they figured out that weren't looking at me. I'm standing where this this woman and everybody's like, you know, da, da da da. 00:39:21 Speaker 3: It's Emily Blunt. And I was the only one in the terminal who didn't know who she was. 00:39:25 Speaker 4: My gosh, all right, well there you go. Maybe I'll see Emily Blunt this weekend. Maybe you'll see you know, another celebrity like. 00:39:31 Speaker 1: That game this weekend. 00:39:32 Speaker 4: Let's look ahead to the weekend and to next week. Bloomberg This Weekend's Lisa Mitteil joined this out in studio. 00:39:39 Speaker 1: What do you have your eye on? 00:39:40 Speaker 14: Yeah, we're looking at Comic Con. Okay, this is this is the nation. Emily there no think she'll be there, but some of your favorite maybe at Chris Hemwerck, maybe whoever. 00:39:50 Speaker 1: But you have all these folks. 00:39:51 Speaker 14: Okay, so we're not just talking comics, right, we're talking TV. 00:39:54 Speaker 9: We're talking gaming. 00:39:56 Speaker 14: Gaming is huge for these You have all these people dressed up. Cosplays a chorus, big thing for it. So they're coming out and they're going to this. It started yesterday in preview, so the big day is today through Sunday. So it's a big thing. Tickets are like, you know, about eighty five bucks or so. But the thing is they sell out. So now on the secondary market, they're going away from five hundred to like a thousand secondary market, so it's it's a big problem, but it's also good for for downtown San Diego. They're going to get a big boost economic their people going to restaurants everywhere for the parties in the area. 00:40:25 Speaker 1: Did you say John Cena was going to be there? I heard, I. 00:40:29 Speaker 2: Heard thank you, though I hear we saw the list of San Diego. It's a it's a it's a big thing. I mean, San Diego is the biggest one, right, it is. 00:40:37 Speaker 1: The biggest one. 00:40:37 Speaker 14: I've been to the New York one. I've covered it a number of times. There may may not have been a Wonder Woman costume involved. It is a good time and it's good to see, not just it's not just kids, it's the adults. 00:40:49 Speaker 1: Who come out to it. 00:40:50 Speaker 14: So it's it's a good time. 00:40:51 Speaker 2: For We just talked about education on the show Bloomberg Money, and I know, Lisa, you've been through the gauntlet of education here in the last twelve months. What was the biggest prize getting a chairub on the path to college? 00:41:03 Speaker 14: I think the biggest surprise was just how much it was going to cost. I mean, the cost of it was ridiculous, and looking at the number of scholarships, like doing all the research into that and then finding, you know, having to talk with your kid like here's the reality, here's where you want to go here's where we can go. And I think that is the toughest conversation, but it has to be had. Yeah, most definitely. 00:41:24 Speaker 4: All right, we also have earnings, and I know we've talked a lot about the hyperscaler results, but there's a bunch of companies that are going to tell us how the consumer's. 00:41:31 Speaker 14: Doing, of course, and that's why we want to look to the consumer ones, because the big list would be too much to get into it. So if you start with Tuesday, we start with Coca Cola and then we go to Visa, So that's for Tuesday. If we go to Wednesday, Procter and Gamble, we have Microsoft and Meta as well. Thursday we have MasterCard, Apple, Amazon, Friday, Colgate, Palmolive, Chevron and Exceon. 00:41:48 Speaker 1: So two big going Oh, Chevron and Exon. 00:41:50 Speaker 4: They're raking it in right now. With oil prices the way they've been. 00:41:53 Speaker 2: They got to be in refinery products as well. To me, actually, inside Baseball, the theme here this week of refining your products up as a story for next week. 00:42:03 Speaker 4: Well, we well, I mean especially with words. 00:42:05 Speaker 3: Bloomberg money up and number ers. 00:42:06 Speaker 4: No, it's actually squarely in the heart of Bloomberg money from the oil prices where they are, Lisa, thank you so much, Lisa Mateo of course on Bloomberg this weekend, every Saturday and Sunday morning, starting at seven am Eastern Time. 00:42:18 Speaker 1: That does it for Bloomberg Money. This is Bloomberg. We'll get a tr choice. Yeah, I cred thought that you how to have. 00:42:30 Speaker 2: This is the Bloomberg Money podcast, bringing you a smart look at the forces shaping your financial life. 00:42:37 Speaker 3: I'm Tom Keen with Scarlet Food. 00:42:40 Speaker 2: You can watch the show live on Bloomberg TV every Friday at noon Wall Street Time. Subscribe to the podcast on Apple, Spotify or wherever you listen, and as always, on the Bloomberg Terminal and the Bloomberg Business app.