January 21, 2026 • 44 mins
Diversification, the most basic thing your portfolio needs to survive our epic Stock Market waves. This week, hosts John and Guiseppe give us the facts on allocations, planning and consulations, and new investments that will affect your retirmement account in 2026. Plus, the 5% Rule, and Gold & Silver. The Wise Money Guys.
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Speaker 1 (00:00):
The Wise Money Guys Radio show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:13):
Good morning, and welcome to the Wise Money Guys radio Show.
I'm your co host John Scambray and I'm here with
my partner just W.
Speaker 3 (00:20):
Visconti.
Speaker 2 (00:20):
We are certified portfolio managers and we specialize in helping
people who are retired are about to retire manage their money.
If you like our show, have any questions or want
to arrange a no obligation consultation, and we highly suggest
you you do, give us a call at nine one
six nine six seven thirty five hundred and if you're
(00:42):
listening for the first time, The Wise Money Guys Show
is brought to you by One Source Wealth Management. We
are an SEC registered investment advisory firm license number three
one nine zero seven eight. For more information and disclosures,
you can always visit our website, which you can find
multiple ways. You can find by going to Wysemoneyguys dot
(01:05):
com if that's easiest to remember, or you can also
go to One Source WM dot com. One being spelled out.
You can always email me email us at question at
wysmoneyguys dot com, and our favorite is for you to
give us a call at nine one six nine six
(01:27):
seven thirty five hundred. Again that numbers nine six nine
six seven thirty five hundred. So first, let's start off
by talking about what we're going to talk about. What
are we going to talk about? I'll tell you what
we're going to talk about. Let me tell you what
we're going to talk about. First of all, I think
we should before we get into some of the some
of the news, the data, earnings, all of those things
(01:50):
you have on your notes there, I think we should
talk about just the basics, getting back to the basics
of portfolio management, good principles, discipline, Yes, such as you know, uh,
do you have a financial plan?
Speaker 3 (02:06):
How?
Speaker 2 (02:06):
Why is that important? Diversification? Often people have diversification completely
wrong and they find out or we find out for
them when doing a review with them or giving them,
you know, a second set of eyes on on what
they're doing. They're not diversified at all. So we should
(02:27):
spend a couple of minutes talking about that risk. You know,
we met with a client, uh last week New new client,
new large client and basically had zero investments right market,
just money market and ensured UH savings account. But but
(02:50):
really has just missed out on tremendous opportunities even if
you were just going bonds. So we should talk about,
you know, diversification. Well you know what your real risk
tolerance is, and come to find out, his was a
little bit uh probably wey conservative.
Speaker 3 (03:09):
And I think you bring up a good point that
we can talk about as far as getting back to
the basics is and you know, part of the reason
why he was allocated that way, which we're going to
help him out to put them in different other you know,
asset classes and diversify him is because you don't know
what you don't know, and you've done a great you know,
somebody has done a great job of saving up working hard,
but they're busy, they're busy with life, they're busy with work,
(03:32):
and you know, they haven't found somebody that they've trusted
to take over the reins and to be able to
take their hard earned money and figure out, what do
I do with this? How do I you know? Because
so they just kind of they just exactly in the
money market and it's been okay because money market rates
and CDs have been very well, you know, I mean
(03:53):
really nice rates in the past, like year, two years,
you know, five percent, four and a half percent, but
then been coming down.
Speaker 2 (03:59):
Yeah, now they're for three and a half actually, especially
if you try to go out long term, you know,
three year, five year CD, you're only in the threes
because you actually you see rates, you know, and banks
being afraid to lock in a higher rate for longer
knowing that we might be in a trending decreasing interest
(04:21):
rate environment. Another key kind of basic is to discuss
for this morning is profit taking. So many times people
are afraid to take profit rebalance and also dollar cost average.
So those are all some of the things that we
(04:41):
can highlight today that we think you should be doing
if you're not willing to come in for a second
opinion or a no obligation consultation, which we're always happy
to do for people and no pressure. In fact, we'll
also do a retirement planning consultation with no obligation and
really get just set up and off to the races
(05:02):
for twenty twenty six and then who knows, maybe you
decide and we decide that we're a good fit for
each other and and you hire us, and so let's
let's let's go ahead and just kind of hit some
of the big headlines we just wanted to go over.
Speaker 3 (05:19):
I think we should highlight the you know, corporate earning
since we're in earning seasons again, talk a little bit
about what's been going on so far this week with earnings,
but you know, more importantly, how do we finish last
year which helps support the overall market and this bull
market that we're in, you know, trending upwards. That's all
(05:39):
a bull market is. It's a market that's in the positive.
Albeit it's not going to be in a straight line.
But last year we had great earnings. You know, was
showing strong year over year growth of seventeen point nine
percent when you're looking at the S and P five hundred,
which is phenomenal. Don't want to dive too much into
the week, but if corporations are coming out and their
(06:03):
meeting or beating expectations during their quarter league corporate earnings,
and furthermore, if they have you know, their conference calls
where they have Ford guidance and showing positive Ford guidance.
As far as future earns and positive outlook of their
services and products that they think are going to continue
(06:25):
to have profits and gains, then that bodes well for
the overall market. Now, we talked about, you know, the
last last week's radio call, some of the headwinds in
the near term, which was government shutdown, the FMC meeting
at the end of this year. Now we have the
Venezuela kind of takeover. Trump is starting to get involved
(06:48):
with some of the.
Speaker 2 (06:48):
Don't forget Iran, you know, the rest in Iran?
Speaker 3 (06:52):
What's that? Where'd you run? And that? Run? Yeah? Iran, right,
which recently we saw a little bit of pressure relief
from that, and oil dip down just the other day.
So we have all these things and there's a lot
of moving targets right. Trump's also talks about putting a
cap on interest rates for credit cards right to ten percent.
(07:16):
I think he's working with Elizabeth Warren on that and not.
Speaker 2 (07:19):
Working with Elizabeth Warren. Elizabeth Warren, you know, tried to
find a way, even though that's right in her wheelhouse,
to find a negative in it, and quite frankly, you know,
not give any credit, you know for the idea, but really,
you know, I'm kind of on the fence on that
one myself. I mean it goes against free market principle. However,
(07:43):
you do have to have rules against, you know, predatory lending,
and I don't think there's anything from that perspective, because
think about it, credit cards are alone, and there are
rules for predatory lending.
Speaker 3 (07:55):
But there's other ways that can go about it. Maybe
we can dive into it, but.
Speaker 2 (07:59):
Really, if somebody, I mean, right off the bat if
if somebody I get, if somebody's credit is completely destroyed
by them, they're a victim of their own, you know,
lack of discipline that that you're going to have a
high interest rate. But at the same time, I mean
thirty five percent interest, I mean that that borders on predatory.
(08:23):
And just like you know, there's rules against loan sharking,
there's rules that pawnshops have to follow with lending, and
there's rules and caps on really short term some of
these cash places that popped off all over in the
in the nineties and two early two thousands, and so
I think that's the path he should go down, is
(08:45):
just see how those kind of protections, if you will,
apply to credit cards versus you can't just go and
it'll never it'll never make it through through Congress or
the Senate anyway to just go, oh, there's a cap
on you know, credit card rates. It still should be
a case by case perspective of who gets what rate
(09:07):
depending on you know, what sort of you know, credit
quality they are to the lender. In this case, you know,
most of the banks are behind the big the big
credit cards. And so I think there's some things in
it that makes sense, but it's got you got to
make sure that it just doesn't go against free market principles.
Speaker 3 (09:27):
Yeah, I thought we'd talked about this later. Since you're
diving into it, I'm not Yeah, exactly what you just
ended with. I'm against it because of that, because what
else is going to be be coming down the pipeline
where you're going to have government step in and then
starting put more caps on you know, either credit cards
(09:47):
or something else.
Speaker 2 (09:48):
Or is an example, right rate controls.
Speaker 3 (09:53):
And he's also talking about he's also putting out there
a ban on institutional investing in you know, home and
single family homes and what have you. Again, I get
the idea, and I'm cunning for it, but when you
look at it, they represent maybe about four percent of
what's out there on the market. So is it really
going to make a huge dent.
Speaker 2 (10:11):
I don't think right now that's going to even be
an issue because we don't have the the inventory, the
excess inventory sitting out there of distressed properties that are
being fire sold you know, from from a from a
from the government, or from a bank, you know, not
like it was in two thousand and eight, where it
(10:32):
was an issue, right because you know, banks would would
gobble up, you know, just hundreds of properties at a
time that were in you know, a short sale or
some sort of level of foreclosure and and that kind
of or they were.
Speaker 3 (10:50):
Forced to because or forced people walked away from them.
They short sold it, right, they weren't able to short
sell it. They they foreclosed and there and it became
it was on the bank's portfolio.
Speaker 2 (11:01):
So think about it. We're not in that situation and
so therefore I don't think that's the bigger the bigger
headline or or a potential headwind. I think the big headwinds,
some of which you mentioned, are ready, which are important.
And this is where you know the first thing that
we need to talk about about getting back to the
basics is diversification. I think you know, the big headwinds
(11:24):
are here. We go a government shut down because they
only passed a continuing resolution at the end of last
year to get the government reopen, and that's about we're
about to run out of money on that continuing resolution.
That's that's a big deal. By the way, in my opinion,
most of these are short term investment dips that you
(11:49):
should potentially take advantage of. But what sector, what type
of investment should you go in in these particular cases,
and that's where you have to be careful. That's where
diversification comes in, and specifically on how we think you
should properly diversify and or look to see if you're
(12:10):
not properly diversified. And so for more information on that
or to update or get your first financial plan in place,
give us a call for a no obligation consultation at
nine to one six nine six seven thirty five hundred
and keep listening to the wise. Many guys, John Scamber,
I'm here with my partner Giuseppe Vescani. We are certified
(12:33):
portfolio managers, which means we're investment experts. Not because we're
certified portfolio managers, but that does help. But because we've
been doing this a very long time, and we've worked
and helped people with their plans, with their investment objectives,
with their portfolios, with just about anything related to their
(12:56):
financial services needs for almost fifty years combined, and so
that makes us battle tested, and that's super important. So often,
you know, people think that it's just easy to manage
your money, pick investments on your own, especially when you've
(13:16):
had a good couple of consecutive years in a row.
But always, we always find that in these situations people
are underdiversified or they're not properly diversified. That's a big
topic for today because there are several headwinds out there
(13:37):
that could really cost some volatility this year. Already mentioned,
you know, when the Continuing Resolution runs out of money,
we might have another government shut down. There might be
some short term volatility from that. How do you, you know,
be prepared to take advantage of that. We also have
the two decisions coming out of the Supreme Court which
(14:00):
could cause some volatility, especially the one regarding tariffs. I mean,
the president absolutely has congressional authority passed by Congress, a
couple of different acts that are on the record where
a president can can decide to tariff countries if it's
(14:21):
in the best interest of the United States, because again
it's something predatory.
Speaker 3 (14:27):
How does they something, how do they if it if
it passes right? And and then they say have to
refund the money, how do they go about the process
of doing that.
Speaker 2 (14:34):
You can't do it. You're not going to do it.
You're just going to refuse to be complicated. You can't refund.
So that's why that's a big sort of headwind that
is out there. And then again, what law are they
going to say, doesn't I mean, how are they gonna
It's Congress's job, you know, on on the on the
(14:55):
on the fiscal policy, this side to decide, you know who,
who has the authority to do what? In Congress years
decades ago, gave the president certain authorities when it comes
to international finance and geopolitical you know, uh, tools to
(15:17):
combat things that are going on today. So these and
and I can't quote the different acts I have on
a show actually one of our shows last year, we
talked about the different rules that that Congress enacted that
got put into law that gives the president the authority
(15:39):
to to tariff and so I don't see how they
they they say the president can't tariff uh, And I
sure certainly don't see how they're going to say we
have to refund money when other countries teariff us. I mean,
it's just as simple as that we get tariffed, and
we weren't. We weren't protecting our own economy. We were
(16:02):
allowing other countries to freely make it so that it
was cheaper for us to export our jobs to another country,
export you know, our rare earth needs and all these
things that are so crucial to production and productivity here.
(16:25):
And and so I'm I'm all for one hundred percent
for the tariffs, not if they're just random, but if
it's in in conjunction with the country that has completely
gone off the rails in tariffing us, and so I
E China, I E Europe, I E Canada, so on
(16:47):
and so forth. But that's one of the things.
Speaker 3 (16:51):
So it's like they were holding a gun to our
heads or corporations that continue to build and you know,
expand their businesses internationally.
Speaker 2 (17:02):
No, we are previous political leaders sold us out.
Speaker 3 (17:05):
Culmination of over time, and now it's trying to you know,
now it's like, Okay, we need to kind of rein
back from this and find find a successful way to
have everybody, you know, all nations lower terriffs.
Speaker 2 (17:18):
And that's that's what's been happening. I mean, that's been
the goal of the President all along on the tariffs
is to get fair trade policy, not to tariff, just
to tariff. It's been to incentivize other countries that have
completely you know, created an imbalance, an economic imbalance, to
(17:43):
get them to level the economic imbalance. And so you know,
we're and and we've we've seen that. Look at the
investment that the tariff threat has caused other countries to say, oh, no,
we're gonna we're going to build and create things now.
And it's happening. You might see in the news. Oh
(18:04):
you know, oh it's not real. No, there has been
a lot of that investment that's promised is in the
works in the United States. New facilities, new factories, reopening
of old factories. Is actually happening in the United States
because of President Trump and the policies and his ability
(18:29):
to negotiate and take on adversarial uh governments that are
adversarial economically. And so now, why did I get onto that,
that's aheadwin, that's a head wind that could cause volatility. Important.
(18:49):
So let's fundamentally diversification should be simple. And that's how
the whole mutual fund industry, in my opinion, was developed,
because right, it was all about, oh, don't put your
eggs in one basket, well, especially mutual especially.
Speaker 3 (19:06):
The target date funds. In four to one case, right,
people were looking at all these different options. They didn't
know what to pick. So it was process by analysis,
kind of like the example we give with a new
client that we took on and wasn't really sure. You
don't know what you don't know, so you just keep
it in cash and you're missing out on you know,
good years in the market that you could have had
a better return, but because of the proalyss by analysis,
(19:27):
you don't know what you don't know. They really made
it as simple as they can in the four to
one K realm, because before it was you just relied
on a company and the pension that you built up
and your loyalty to the company, and after working for
twenty thirty years you retire and then now you have
your pension. No longer is that the case unless you're
like a public employee. So now you have to rely
(19:49):
on yourself and be disciplined enough to put money away
to save in ways of either four to one K
if you're working for a corporation a company that offers that,
and other ways that.
Speaker 2 (19:59):
You can say self employed sep By.
Speaker 3 (20:01):
But the four to one K they came out and
I think it was in the nineties and definitely early
two thousands where they came out with the target date funds.
Their mediocre at best as far as as far as
performance and kind of how they've performed against the peer.
But what makes it easy is they're diversified in different
(20:23):
asca classes and then they change as time goes on.
So if you pick a you know, hey, I'm going
to retire in twenty thirty five, right, that's kind of
my target of one I'm going to retire, then you're
then the idea is that you pick the target date
fund twenty thirty five, because then it's going to be
allocated along the way and change between now and twenty
(20:46):
thirty five, And as you get closer and closer to
the twenty thirty five date, it becomes more and more conservative.
Speaker 2 (20:52):
The problem is it goes more to fixed income, which
is more. And that doesn't mean that in twenty thirty
five or as you get close to twenty thirty five,
it's a good time to buy, you know, and put
all of your money into bonds.
Speaker 3 (21:05):
Right, So it's just it's just like on a mechanism
and based off of guidelines. So it's it doesn't you
know if if your point, let's say you were planning
on retiring in twenty twenty two, right, and you had
this target date fund for the past ten years, and
you picked twenty twenty two, well, twenty twenty two or
twenty twenty you know, between twenty twenty two and twenty
(21:26):
twenty three, that was a horrible year for bonds, but
your target date fund would have been allocated and had
a bigger and bigger and bigger waiting towards bonds or
fixed income. Same thing. And all of a sudden, you're
retiring at the end of twenty twenty two or twenty
twenty three, and your fund that you've been putting your
money into all this time has now taken a big hit, yeah,
(21:48):
because it was the worst year.
Speaker 2 (21:49):
Stocks that it holds in the portfolio and the bonds
that it holds in the portfolio, right.
Speaker 3 (21:53):
And so that sometimes that's the downfall of mutual funds
is they have to the portfolio managers within the fund,
whether it's a target date fund, or it's a large
cap growth fund, or it's a value fund, or it's
a mid cap fund or a small cap fund or whatever,
they have to a buide by the guidelines of what
they're going to invest in. So if it's a small
cap fund, a small cap stocks right now of smaller
(22:15):
companies aren't doing well, they can't just shift and say
we're going to go into a large cap.
Speaker 2 (22:22):
Or we're going to go into fixed income because now
prices are low and interest rates are high. So that's
a great way to segue into how important true diversification
is and mutual funds. And as you pointed out, target
date funds don't necessarily mean you're diversified appropriately for when
(22:44):
you're going to retire, or you're already retired, or whatever
your risk tolerance. Risk tolerances actually are, so keep in
mind there's five categories of investments, and some I argue, oh,
there's more categories, but at the end of the day,
there's only stocks, bonds, real estate alternatives, which encapsulate so
(23:09):
many different types of investments, and then cash like investments,
you could put just about any sort of investment opportunity
into one of those five categories. And so when you're
truly trying to diversify, you should first know you should
first have a plan that's a principle that says, here's
(23:30):
what my needs are financially, and here's what sort of
return on the things, on the things that I have
saved the money I have amass, here's the return that
I need to get in retirement in order to accomplish
my need objectives.
Speaker 3 (23:48):
And before retirement too, and before how much risk? How
much risk? How much risk your assets need to take
on prior to retirement to build up and into retirement,
And you don't want to take ideally, you don't want
to take any unnecessary risk above and beyond that.
Speaker 2 (24:06):
And then so once you have the plan in place
that establishes the types of numbers you need to get
on the returns on your investment, then you go forward
and figure out the investments in those five categories that
can get you to that cash flow, that can get
you to that growth rate with the least amount of
(24:28):
risk possible. And often it takes not the amount of
stocks that you think it would. It might only take
ten percent in stocks, you know, thirty percent or forty
percent in the fixed income type investment, some in alternatives.
We love the alternative space and some of the alternative
(24:48):
structures and notes and investments out there, and then a
certain amount in cash and other things. And so proper
diversification is where you start, especially in a new year,
especially after several good years, to rebalance and see where
(25:10):
you might be, you know, overly invested or underinvested, based
on what that plan says, your objectives are and your
needs are. And so for more information on that or
to update or get your first financial plan in place,
give us a call for a no obligation consultation at
(25:30):
nine one six nine six seven thirty five hundred and
keep listening to the Wise Money Guys. John Scambray. I'm
here with my partner Juseppe Vescani, and if you're listening
for the first time, the Wise Money Guys Show is
brought to you by One Source Wealth Management. We are
an SEC registered Investment Advisory firm license number three one
(25:51):
nine zero seven eight. For more information and disclosures, you
can always visit our website which you can find multiple
You can find by going to wysmoneyguys dot com if
that's easiest to remember, or you can also go to
one source w M dot com. One being spelled out.
(26:14):
You can always email email us at question at wysmoneyguys
dot com, and our favorite is for you to give
us a call at nine one six nine six seven
thirty five hundred. Again that numbers nine six nine six
seven thirty five hundred. So continuing on just the basics
(26:36):
or principles of money management, and to finish off the
conversation about proper diversification, you know, being diversified amongst the
various investment categories to get the returns that you need
to have versus not having some sort of established goals
(26:57):
and objectives. Therefore, you know, if you didn't have those
goals and objective, then your portfolio, you know, you have
a smaller chance of success with achieving the investment returns
that you need if you don't have a plan behind them.
But finally, a very basic rule of thumb to you,
(27:19):
So if you are going to be say all in
stocks because you're still working, you've got at least five
maybe even ten years or more to go. Then use
a five percent rule of thumb and then decide to
dollar cost average from there or take profit from there.
Meaning if I'm going to have half a million dollars
(27:41):
in stocks because that's the size of my portfolio, well
then maybe have twenty five thousand in each investment so
that you don't overbuy one particular thing because maybe you
got a great tip. That's my favorite is when we hear, oh, well,
my friend, you know, knows the person who owns this
(28:02):
company or is a this, and I get the boy
those first of all, those never work out.
Speaker 3 (28:08):
Or you got into late because the euphori is built
up in a certain investment and you want to add
in and you're putting a bunch of money in, but
now now you've hit the top, and now that that
investment is starting to go down.
Speaker 2 (28:18):
So please don't use oh I heard from a friend,
or especially if you were in your your dentist chair
and you're talking about investments before or whatever and you go, oh,
I heard it again. Nothing wrong with potentially buying, you know,
some sort of speculative or startup or recent publicly traded company,
(28:41):
but use that five percent rule so that if that
tip doesn't work out, great, you know, you don't lose
fifty percent of your money because you bet the farm.
So and sadly, we've had clients that have taken out
money because, oh, their friends went into this thing and
it did incredible and now it's about to get this
(29:05):
that or the other. You know, they just signed new
contracts or I mean, we've heard it all. And then
they take out fifty thousand, one hundred thousand, quarter of
a million dollars and several years later they're come back
and they're they're sewing, they're trying to get their money out,
and guess what, it's gone and went up in smoke. So, anyway,
(29:27):
use that five percent rule on any investment you're going
to put your hard earned dollars in, and consider all
five classes of investments instead of just putting all your
money in stocks, or all of your money in bonds,
or all of your money in real estate, or all
your money in alternatives like bitcoin or commodities, or metals
(29:52):
like gold and silver. Although I do, like I've said
over and over and over again, goal's.
Speaker 3 (29:59):
Going to five thou almost every radio session, every radio session,
I do believe gold's going to five thousand.
Speaker 2 (30:06):
I do believe silver is going to one hundred and
then I think it's going to pause there and bounce around.
I think it could ultimately go higher from there. But
you were pointing out to our new client the other
day that gold over the last fifty years has been
more volatile.
Speaker 3 (30:24):
Well, I don't actual yeah, I don't know how long.
I think we did like twenty years and did analysis
on twenty years shooting the S and P five hundred
and gold because a lot of times people because you know,
our new client said, you know, I keep hearing you know,
I listened to different radio shows and you know online
and you know a question I have and this is
where it came up. What John's alluding to is he says,
(30:47):
you know, these guys are talking about gold, and you know,
put your money in gold. And by the way, there's
different ways to invest in gold.
Speaker 2 (30:53):
Right.
Speaker 3 (30:53):
You can do it in physical you can do you
know where it's more liquid, and you can do it
in stocks or.
Speaker 2 (30:59):
ETFs companies and mining company companies involve.
Speaker 3 (31:02):
Gold copper, right, So there's different ways. You know, if
you want to learn more about that, that's where you'd like,
you know, like to hear more information about it, you
can give us a call at nine one six nine
six seven thirty five hundred.
Speaker 2 (31:13):
In fact, before you go doing a gold IRA, know
that they're they're still very high commission based investments where okay,
you're going to put that physical gold in safe keeping
with a gold IRA company. That gold IRA company could
be charging you one hundred to three hundred dollars a
(31:37):
month for their IRA and safe keeping fee. And then
on top of that they you charge a ten percent
commission to buy and sell the gold. And remember gold
is pretty and metals are pretty ill liquid. You've got
to pay somebody to physically take that gold off of
(31:57):
your hand. And again you commission both ways when you
buy and sell it, and then storage and custodian fees
are extremely high, and it doesn't pay you a return
on your investment in the form of a dividend or interest.
So there are better ways to buy gold, And as
(32:19):
jo Seppi said, if you want to learn more about
that before you go parking, you know, hundreds of thousands
of dollars of your retirement into gold or silver. Give
us a call at nine one six nine six seven
thirty five hundred.
Speaker 3 (32:36):
But to finish a thought, you know, running back twenty
years and looking at gold and s and P five hundred.
Gold actually came back with a little bit more volatility
over that time period. So a lot of times it
has a misconception of I'm gonna put me put my
money in gold, or I heard these guys on the radio,
I saw this thing online, and I'm worried about the market,
so I'm worried about the economy or whatever the case
(32:58):
may be. So they're from going to put my money
in gold that's safe. It's not safe, right, It's not
as safe as cash, it's not as safe as treasuries. Right.
Those are actually true conservative investments money market cash, US
government treasuries. Gold typically gets to be in favor when
(33:18):
there are worries about the market, economy, or the dollar,
and that's what usually drives that that that commodity up right,
or unless it's being bought up. Countries have been buying
up gold, so that also creates more demand for it.
We see that in silver because the euphoria around AI
(33:39):
and all the data centers and now silver and or
more so than gold, right, and it's how much silver
is going to be used and so we're seeing a
run up in silver, but that also could be you know,
volatile as well on the upside, which everybody loves, but
on the downside, right, So therefore it goes back to
the diversification. You know, do we like gold, yes, does
(34:02):
it make sense for everybody? Know how much you know,
exposure do you need to have of gold? Well, then
your portfolio, your assets, that's where we dig in and
put a plan together. Look at your current assets, figure
out your timeline, your risk tolerance, how much what it
is that you need, and how your risk levels are.
And then from that point figure out you know how
(34:24):
much gold, how much bonds, how much stocks doing and
you over a portfolio, what's the current mix up of
it or the appropriate mixup of it.
Speaker 2 (34:32):
By the way, I just was playing with some numbers.
If if silver was one hundred dollars an ounce, and
you wanted to have one hundred thousand dollars of physical silver,
it would be sixty two point five pounds of silver.
So that's simply taking one hundred thousand, dividing it by
(34:55):
one hundred dollars an ounce, and then dividing it by
sixteen ounces per pound. You would have sixty two point
five pounds of silver. That's the other thing. I mean,
put that in your ruck set, right, Where are you
going to put that? You're gonna You're gonna put it
in a bucket? Yeah, well, and that's the take. That's
some argument. And you're going to put it in a
safe And that's the argument that.
Speaker 3 (35:15):
We you know, you and I have had on gold
and some clients and prospects. Is when you buy the
physical gold, whether or not it's like a safe haven,
like oh the economy fails or this or that, I'm
gonna I'll have gold, what do you do with it? Exactly?
You can't. You can't bite it, you can't eat it.
You can't. Nobody trades gold, not that I know of.
Nobody trades a bar of gold for goods and service.
Speaker 2 (35:38):
Right, Or you're going to take a coin and you're
going to bite a piece off of it and go
here you go for payment for it.
Speaker 3 (35:43):
Here's here's one. Yeah, So you can't. You're gonna have
to trade it in for US dollars or some other currency,
and then you can have that currency to trade for
goods and services. So to have the physical gold itself,
not only that, but you know, then you have the
risk of if you get robbed, what if there's a
fire in your house or all these other things. Right, like,
(36:05):
exactly how many people had, how many people have these
hard assets? Maybe that in the Paradise fires or the
Santa Rosa or the Palisades gone right, gone, I mean
it's not going to survive that exactly right.
Speaker 2 (36:16):
So, and don't misunderstand. We think proper diversification, being in
the different asset classes or different categories of investments, including gold,
is a good way to be properly diversified. But there's
better ways to buy gold or silver in the alternative
category of investments than just buying the physical metal. If
(36:39):
you have the physical metal and you've had it a
long time, and go fantastic, But to buy it now
this price is in any meaningful way and not have
cash flow or yield on it as far as a
dividend or interest is probably not the best way to
be buying gold and silver for your retirement in our opinion.
So you're listening to the wise money guys, john'scamerone Giuseppe Fiscani,
(37:03):
and we were talking about planning and diversification as the
basics for properly investing and managing your investments. And certainly
if you don't have a plan in place or you
haven't reviewed your plan in a long time, please give
(37:24):
us a call for a no obligation consultation. We will
do a planning consultation and planning meeting with you absolutely
no charge whatsoever or pressure. Call us at nine one
six ninety six seven thirty five hundred. Giuseppe did mention
you know target date funds and how we believe mutual
(37:46):
funds aren't that great when it comes to being truly diversified.
You're you're you're limited to what's out there. You're limited
by what they can and can't do inside of the portfolio.
So keep in mind that, and this is an area
that a lot of people don't realize well.
Speaker 3 (38:05):
And the target day fund is associated with the four
to one K plans, which plenty of people have, and
that's you know, their their main source of investing and
saving towards their retirement. And you typically have a narrow
menu of options, and then you're left with picking the
target day fund. If you don't have good guidance right
(38:25):
from you, for your plan administrator or whoever's helping you
with that, or you don't have a financial advisor helping
you and you're just resorted to the target date fund
and or you know, you have other options within your
four one K plan and you're not sure what the
appropriate mix up is. So there are other ways, and
that's what John's going to talk about.
Speaker 2 (38:44):
Yeah, so one of the nice thing And by the way,
we do manage four one k's for you know, closely
held companies and and our biggest one has I don't
know about one hundred employees. Our smallest one has maybe
fifteen employees. But what a lot of people don't know
(39:07):
is you might be with a very large employer such
as a hospital, such as a dignity or or cheiser
or one of those. And if you have, for example,
net benefits through fidelity, and it doesn't have to be
a hospital. We had another person who was with a
(39:32):
medical supply company and they were they had fidelity and
fidelity And if your employer allows you to have a
self directed option within your current four oh one K
while you're still working for your employer, you can hire
us instead of just going it alone. You can hire
(39:56):
us where that money is moved into the self direct
did option of the four one K plan, which then
allows you to have the world of investments available with
some restrictions like options or derivatives, but for the most part,
(40:17):
you then could have individual stocks, individual bonds, way better
choices when it comes to funds such as ETFs or
closed end funds which offer a lot or some alternative investments,
or gold you know, or or gold investments or silver investments,
on and on and on. If you're not sure whether
(40:40):
or not your your plan at your employer allows it,
guess what, it's public. We can look it up four
oh one K plans and the reporting and tax filing
per the ARISA requirements are public. We can look up
and see if your four oh one K plan at
(41:02):
your employer has a self directed brokerage option, and that's
very easy to do by giving us a call at
nine one six nine six seven thirty five hundred. So
let's just kind of recap some headwinds potentially this year,
(41:24):
this month, actually this month. Yeah, so just in the
next couple of weeks. Overall, we think it's going to
be a good year. We think there will be similar
volatility as as there was last year this year around
these events. The geopolitical events we mentioned, you know, the
she is now, the unrest in Iran, you know, do
(41:45):
we go into Iran, The situation in Venezuela, do we
go into Venezuela, you know, ongoing issues still obviously Russia
Ukraine hasn't resolved itself. The things put pressure on oil prices.
These things put pressure on the stock market because so
(42:07):
many things are are on a world scale these days.
That's why these geopolitical events could trigger some volatility in
your investments. Again, then you're going to want to be
properly diversified and not have a large concentration in just
one position or one category of investment. There's the other
things going on in January, Supreme Court decisions, the Continuing Resolution,
(42:32):
ending or running out of money, a government shut down potentially,
you know, potentially in FOMC meetings, and decisions on interest
rates with respect to inflation. So lots of things that
you should be, you know, cautiously optimistic about this year,
(42:54):
but you should also be prepared.
Speaker 3 (42:56):
Please.
Speaker 2 (42:57):
That's where profit taking comes into play. That's where dollar
cost averaging comes in, balancing, rebalancing. So many people that
are so fearful of pain one percent don't know that.
That's what our average fee is. By the way, and
we are both a Schwab platform independently and a Fidelity
(43:21):
platform independently, and so if you have a Schwab or
Fidelity account already, it's very easy to give us a try.
And we charge one fourth of our fee every quarter
in arrears, So that basically means you can give us
a try and not even pay a fee till April,
and it be a pro rated one quarter on top
(43:44):
of it, to see if we're as good as we
say we are, to see if what we do what
we say we do we do right.
Speaker 3 (43:52):
But all together constructing a portfolio, following up and making
sure that you're aligned and you're on track to hit
your fun So.
Speaker 2 (44:00):
Please don't go it alone. Give the wise money, guys,
John Scambray and Giuseppe Veascani. I call it nine one
six nine six seven thirty five hundred. Again, that numbers
nine one six, nine six seven thirty five hundred, and
so I think that's all we got so far, right, Yeah, Okay,
it's a wrap. I hope you enjoyed listening. Uh, please
(44:22):
come back and give us a listen uh next weekend.
And have a great day.
Speaker 3 (44:27):
Have a great weekend. Bye all.
The Wise Money Guys Radio show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:13):
Good morning, and welcome to the Wise Money Guys radio Show.
I'm your co host John Scambray and I'm here with
my partner just W.
Speaker 3 (00:20):
Visconti.
Speaker 2 (00:20):
We are certified portfolio managers and we specialize in helping
people who are retired are about to retire manage their money.
If you like our show, have any questions or want
to arrange a no obligation consultation, and we highly suggest
you you do, give us a call at nine one
six nine six seven thirty five hundred and if you're
(00:42):
listening for the first time, The Wise Money Guys Show
is brought to you by One Source Wealth Management. We
are an SEC registered investment advisory firm license number three
one nine zero seven eight. For more information and disclosures,
you can always visit our website, which you can find
multiple ways. You can find by going to Wysemoneyguys dot
(01:05):
com if that's easiest to remember, or you can also
go to One Source WM dot com. One being spelled out.
You can always email me email us at question at
wysmoneyguys dot com, and our favorite is for you to
give us a call at nine one six nine six
(01:27):
seven thirty five hundred. Again that numbers nine six nine
six seven thirty five hundred. So first, let's start off
by talking about what we're going to talk about. What
are we going to talk about? I'll tell you what
we're going to talk about. Let me tell you what
we're going to talk about. First of all, I think
we should before we get into some of the some
of the news, the data, earnings, all of those things
(01:50):
you have on your notes there, I think we should
talk about just the basics, getting back to the basics
of portfolio management, good principles, discipline, Yes, such as you know, uh,
do you have a financial plan?
Speaker 3 (02:06):
How?
Speaker 2 (02:06):
Why is that important? Diversification? Often people have diversification completely
wrong and they find out or we find out for
them when doing a review with them or giving them,
you know, a second set of eyes on on what
they're doing. They're not diversified at all. So we should
(02:27):
spend a couple of minutes talking about that risk. You know,
we met with a client, uh last week New new client,
new large client and basically had zero investments right market,
just money market and ensured UH savings account. But but
(02:50):
really has just missed out on tremendous opportunities even if
you were just going bonds. So we should talk about,
you know, diversification. Well you know what your real risk
tolerance is, and come to find out, his was a
little bit uh probably wey conservative.
Speaker 3 (03:09):
And I think you bring up a good point that
we can talk about as far as getting back to
the basics is and you know, part of the reason
why he was allocated that way, which we're going to
help him out to put them in different other you know,
asset classes and diversify him is because you don't know
what you don't know, and you've done a great you know,
somebody has done a great job of saving up working hard,
but they're busy, they're busy with life, they're busy with work,
(03:32):
and you know, they haven't found somebody that they've trusted
to take over the reins and to be able to
take their hard earned money and figure out, what do
I do with this? How do I you know? Because
so they just kind of they just exactly in the
money market and it's been okay because money market rates
and CDs have been very well, you know, I mean
(03:53):
really nice rates in the past, like year, two years,
you know, five percent, four and a half percent, but
then been coming down.
Speaker 2 (03:59):
Yeah, now they're for three and a half actually, especially
if you try to go out long term, you know,
three year, five year CD, you're only in the threes
because you actually you see rates, you know, and banks
being afraid to lock in a higher rate for longer
knowing that we might be in a trending decreasing interest
(04:21):
rate environment. Another key kind of basic is to discuss
for this morning is profit taking. So many times people
are afraid to take profit rebalance and also dollar cost average.
So those are all some of the things that we
(04:41):
can highlight today that we think you should be doing
if you're not willing to come in for a second
opinion or a no obligation consultation, which we're always happy
to do for people and no pressure. In fact, we'll
also do a retirement planning consultation with no obligation and
really get just set up and off to the races
(05:02):
for twenty twenty six and then who knows, maybe you
decide and we decide that we're a good fit for
each other and and you hire us, and so let's
let's let's go ahead and just kind of hit some
of the big headlines we just wanted to go over.
Speaker 3 (05:19):
I think we should highlight the you know, corporate earning
since we're in earning seasons again, talk a little bit
about what's been going on so far this week with earnings,
but you know, more importantly, how do we finish last
year which helps support the overall market and this bull
market that we're in, you know, trending upwards. That's all
(05:39):
a bull market is. It's a market that's in the positive.
Albeit it's not going to be in a straight line.
But last year we had great earnings. You know, was
showing strong year over year growth of seventeen point nine
percent when you're looking at the S and P five hundred,
which is phenomenal. Don't want to dive too much into
the week, but if corporations are coming out and their
(06:03):
meeting or beating expectations during their quarter league corporate earnings,
and furthermore, if they have you know, their conference calls
where they have Ford guidance and showing positive Ford guidance.
As far as future earns and positive outlook of their
services and products that they think are going to continue
(06:25):
to have profits and gains, then that bodes well for
the overall market. Now, we talked about, you know, the
last last week's radio call, some of the headwinds in
the near term, which was government shutdown, the FMC meeting
at the end of this year. Now we have the
Venezuela kind of takeover. Trump is starting to get involved
(06:48):
with some of the.
Speaker 2 (06:48):
Don't forget Iran, you know, the rest in Iran?
Speaker 3 (06:52):
What's that? Where'd you run? And that? Run? Yeah? Iran, right,
which recently we saw a little bit of pressure relief
from that, and oil dip down just the other day.
So we have all these things and there's a lot
of moving targets right. Trump's also talks about putting a
cap on interest rates for credit cards right to ten percent.
(07:16):
I think he's working with Elizabeth Warren on that and not.
Speaker 2 (07:19):
Working with Elizabeth Warren. Elizabeth Warren, you know, tried to
find a way, even though that's right in her wheelhouse,
to find a negative in it, and quite frankly, you know,
not give any credit, you know for the idea, but really,
you know, I'm kind of on the fence on that
one myself. I mean it goes against free market principle. However,
(07:43):
you do have to have rules against, you know, predatory lending,
and I don't think there's anything from that perspective, because
think about it, credit cards are alone, and there are
rules for predatory lending.
Speaker 3 (07:55):
But there's other ways that can go about it. Maybe
we can dive into it, but.
Speaker 2 (07:59):
Really, if somebody, I mean, right off the bat if
if somebody I get, if somebody's credit is completely destroyed
by them, they're a victim of their own, you know,
lack of discipline that that you're going to have a
high interest rate. But at the same time, I mean
thirty five percent interest, I mean that that borders on predatory.
(08:23):
And just like you know, there's rules against loan sharking,
there's rules that pawnshops have to follow with lending, and
there's rules and caps on really short term some of
these cash places that popped off all over in the
in the nineties and two early two thousands, and so
I think that's the path he should go down, is
(08:45):
just see how those kind of protections, if you will,
apply to credit cards versus you can't just go and
it'll never it'll never make it through through Congress or
the Senate anyway to just go, oh, there's a cap
on you know, credit card rates. It still should be
a case by case perspective of who gets what rate
(09:07):
depending on you know, what sort of you know, credit
quality they are to the lender. In this case, you know,
most of the banks are behind the big the big
credit cards. And so I think there's some things in
it that makes sense, but it's got you got to
make sure that it just doesn't go against free market principles.
Speaker 3 (09:27):
Yeah, I thought we'd talked about this later. Since you're
diving into it, I'm not Yeah, exactly what you just
ended with. I'm against it because of that, because what
else is going to be be coming down the pipeline
where you're going to have government step in and then
starting put more caps on you know, either credit cards
(09:47):
or something else.
Speaker 2 (09:48):
Or is an example, right rate controls.
Speaker 3 (09:53):
And he's also talking about he's also putting out there
a ban on institutional investing in you know, home and
single family homes and what have you. Again, I get
the idea, and I'm cunning for it, but when you
look at it, they represent maybe about four percent of
what's out there on the market. So is it really
going to make a huge dent.
Speaker 2 (10:11):
I don't think right now that's going to even be
an issue because we don't have the the inventory, the
excess inventory sitting out there of distressed properties that are
being fire sold you know, from from a from a
from the government, or from a bank, you know, not
like it was in two thousand and eight, where it
(10:32):
was an issue, right because you know, banks would would
gobble up, you know, just hundreds of properties at a
time that were in you know, a short sale or
some sort of level of foreclosure and and that kind
of or they were.
Speaker 3 (10:50):
Forced to because or forced people walked away from them.
They short sold it, right, they weren't able to short
sell it. They they foreclosed and there and it became
it was on the bank's portfolio.
Speaker 2 (11:01):
So think about it. We're not in that situation and
so therefore I don't think that's the bigger the bigger
headline or or a potential headwind. I think the big headwinds,
some of which you mentioned, are ready, which are important.
And this is where you know the first thing that
we need to talk about about getting back to the
basics is diversification. I think you know, the big headwinds
(11:24):
are here. We go a government shut down because they
only passed a continuing resolution at the end of last
year to get the government reopen, and that's about we're
about to run out of money on that continuing resolution.
That's that's a big deal. By the way, in my opinion,
most of these are short term investment dips that you
(11:49):
should potentially take advantage of. But what sector, what type
of investment should you go in in these particular cases,
and that's where you have to be careful. That's where
diversification comes in, and specifically on how we think you
should properly diversify and or look to see if you're
(12:10):
not properly diversified. And so for more information on that
or to update or get your first financial plan in place,
give us a call for a no obligation consultation at
nine to one six nine six seven thirty five hundred
and keep listening to the wise. Many guys, John Scamber,
I'm here with my partner Giuseppe Vescani. We are certified
(12:33):
portfolio managers, which means we're investment experts. Not because we're
certified portfolio managers, but that does help. But because we've
been doing this a very long time, and we've worked
and helped people with their plans, with their investment objectives,
with their portfolios, with just about anything related to their
(12:56):
financial services needs for almost fifty years combined, and so
that makes us battle tested, and that's super important. So often,
you know, people think that it's just easy to manage
your money, pick investments on your own, especially when you've
(13:16):
had a good couple of consecutive years in a row.
But always, we always find that in these situations people
are underdiversified or they're not properly diversified. That's a big
topic for today because there are several headwinds out there
(13:37):
that could really cost some volatility this year. Already mentioned,
you know, when the Continuing Resolution runs out of money,
we might have another government shut down. There might be
some short term volatility from that. How do you, you know,
be prepared to take advantage of that. We also have
the two decisions coming out of the Supreme Court which
(14:00):
could cause some volatility, especially the one regarding tariffs. I mean,
the president absolutely has congressional authority passed by Congress, a
couple of different acts that are on the record where
a president can can decide to tariff countries if it's
(14:21):
in the best interest of the United States, because again
it's something predatory.
Speaker 3 (14:27):
How does they something, how do they if it if
it passes right? And and then they say have to
refund the money, how do they go about the process
of doing that.
Speaker 2 (14:34):
You can't do it. You're not going to do it.
You're just going to refuse to be complicated. You can't refund.
So that's why that's a big sort of headwind that
is out there. And then again, what law are they
going to say, doesn't I mean, how are they gonna
It's Congress's job, you know, on on the on the
(14:55):
on the fiscal policy, this side to decide, you know who,
who has the authority to do what? In Congress years
decades ago, gave the president certain authorities when it comes
to international finance and geopolitical you know, uh, tools to
(15:17):
combat things that are going on today. So these and
and I can't quote the different acts I have on
a show actually one of our shows last year, we
talked about the different rules that that Congress enacted that
got put into law that gives the president the authority
(15:39):
to to tariff and so I don't see how they
they they say the president can't tariff uh, And I
sure certainly don't see how they're going to say we
have to refund money when other countries teariff us. I mean,
it's just as simple as that we get tariffed, and
we weren't. We weren't protecting our own economy. We were
(16:02):
allowing other countries to freely make it so that it
was cheaper for us to export our jobs to another country,
export you know, our rare earth needs and all these
things that are so crucial to production and productivity here.
(16:25):
And and so I'm I'm all for one hundred percent
for the tariffs, not if they're just random, but if
it's in in conjunction with the country that has completely
gone off the rails in tariffing us, and so I
E China, I E Europe, I E Canada, so on
(16:47):
and so forth. But that's one of the things.
Speaker 3 (16:51):
So it's like they were holding a gun to our
heads or corporations that continue to build and you know,
expand their businesses internationally.
Speaker 2 (17:02):
No, we are previous political leaders sold us out.
Speaker 3 (17:05):
Culmination of over time, and now it's trying to you know,
now it's like, Okay, we need to kind of rein
back from this and find find a successful way to
have everybody, you know, all nations lower terriffs.
Speaker 2 (17:18):
And that's that's what's been happening. I mean, that's been
the goal of the President all along on the tariffs
is to get fair trade policy, not to tariff, just
to tariff. It's been to incentivize other countries that have
completely you know, created an imbalance, an economic imbalance, to
(17:43):
get them to level the economic imbalance. And so you know,
we're and and we've we've seen that. Look at the
investment that the tariff threat has caused other countries to say, oh, no,
we're gonna we're going to build and create things now.
And it's happening. You might see in the news. Oh
(18:04):
you know, oh it's not real. No, there has been
a lot of that investment that's promised is in the
works in the United States. New facilities, new factories, reopening
of old factories. Is actually happening in the United States
because of President Trump and the policies and his ability
(18:29):
to negotiate and take on adversarial uh governments that are
adversarial economically. And so now, why did I get onto that,
that's aheadwin, that's a head wind that could cause volatility. Important.
(18:49):
So let's fundamentally diversification should be simple. And that's how
the whole mutual fund industry, in my opinion, was developed,
because right, it was all about, oh, don't put your
eggs in one basket, well, especially mutual especially.
Speaker 3 (19:06):
The target date funds. In four to one case, right,
people were looking at all these different options. They didn't
know what to pick. So it was process by analysis,
kind of like the example we give with a new
client that we took on and wasn't really sure. You
don't know what you don't know, so you just keep
it in cash and you're missing out on you know,
good years in the market that you could have had
a better return, but because of the proalyss by analysis,
(19:27):
you don't know what you don't know. They really made
it as simple as they can in the four to
one K realm, because before it was you just relied
on a company and the pension that you built up
and your loyalty to the company, and after working for
twenty thirty years you retire and then now you have
your pension. No longer is that the case unless you're
like a public employee. So now you have to rely
(19:49):
on yourself and be disciplined enough to put money away
to save in ways of either four to one K
if you're working for a corporation a company that offers that,
and other ways that.
Speaker 2 (19:59):
You can say self employed sep By.
Speaker 3 (20:01):
But the four to one K they came out and
I think it was in the nineties and definitely early
two thousands where they came out with the target date funds.
Their mediocre at best as far as as far as
performance and kind of how they've performed against the peer.
But what makes it easy is they're diversified in different
(20:23):
asca classes and then they change as time goes on.
So if you pick a you know, hey, I'm going
to retire in twenty thirty five, right, that's kind of
my target of one I'm going to retire, then you're
then the idea is that you pick the target date
fund twenty thirty five, because then it's going to be
allocated along the way and change between now and twenty
(20:46):
thirty five, And as you get closer and closer to
the twenty thirty five date, it becomes more and more conservative.
Speaker 2 (20:52):
The problem is it goes more to fixed income, which
is more. And that doesn't mean that in twenty thirty
five or as you get close to twenty thirty five,
it's a good time to buy, you know, and put
all of your money into bonds.
Speaker 3 (21:05):
Right, So it's just it's just like on a mechanism
and based off of guidelines. So it's it doesn't you
know if if your point, let's say you were planning
on retiring in twenty twenty two, right, and you had
this target date fund for the past ten years, and
you picked twenty twenty two, well, twenty twenty two or
twenty twenty you know, between twenty twenty two and twenty
(21:26):
twenty three, that was a horrible year for bonds, but
your target date fund would have been allocated and had
a bigger and bigger and bigger waiting towards bonds or
fixed income. Same thing. And all of a sudden, you're
retiring at the end of twenty twenty two or twenty
twenty three, and your fund that you've been putting your
money into all this time has now taken a big hit, yeah,
(21:48):
because it was the worst year.
Speaker 2 (21:49):
Stocks that it holds in the portfolio and the bonds
that it holds in the portfolio, right.
Speaker 3 (21:53):
And so that sometimes that's the downfall of mutual funds
is they have to the portfolio managers within the fund,
whether it's a target date fund, or it's a large
cap growth fund, or it's a value fund, or it's
a mid cap fund or a small cap fund or whatever,
they have to a buide by the guidelines of what
they're going to invest in. So if it's a small
cap fund, a small cap stocks right now of smaller
(22:15):
companies aren't doing well, they can't just shift and say
we're going to go into a large cap.
Speaker 2 (22:22):
Or we're going to go into fixed income because now
prices are low and interest rates are high. So that's
a great way to segue into how important true diversification
is and mutual funds. And as you pointed out, target
date funds don't necessarily mean you're diversified appropriately for when
(22:44):
you're going to retire, or you're already retired, or whatever
your risk tolerance. Risk tolerances actually are, so keep in
mind there's five categories of investments, and some I argue, oh,
there's more categories, but at the end of the day,
there's only stocks, bonds, real estate alternatives, which encapsulate so
(23:09):
many different types of investments, and then cash like investments,
you could put just about any sort of investment opportunity
into one of those five categories. And so when you're
truly trying to diversify, you should first know you should
first have a plan that's a principle that says, here's
(23:30):
what my needs are financially, and here's what sort of
return on the things, on the things that I have
saved the money I have amass, here's the return that
I need to get in retirement in order to accomplish
my need objectives.
Speaker 3 (23:48):
And before retirement too, and before how much risk? How
much risk? How much risk your assets need to take
on prior to retirement to build up and into retirement,
And you don't want to take ideally, you don't want
to take any unnecessary risk above and beyond that.
Speaker 2 (24:06):
And then so once you have the plan in place
that establishes the types of numbers you need to get
on the returns on your investment, then you go forward
and figure out the investments in those five categories that
can get you to that cash flow, that can get
you to that growth rate with the least amount of
(24:28):
risk possible. And often it takes not the amount of
stocks that you think it would. It might only take
ten percent in stocks, you know, thirty percent or forty
percent in the fixed income type investment, some in alternatives.
We love the alternative space and some of the alternative
(24:48):
structures and notes and investments out there, and then a
certain amount in cash and other things. And so proper
diversification is where you start, especially in a new year,
especially after several good years, to rebalance and see where
(25:10):
you might be, you know, overly invested or underinvested, based
on what that plan says, your objectives are and your
needs are. And so for more information on that or
to update or get your first financial plan in place,
give us a call for a no obligation consultation at
(25:30):
nine one six nine six seven thirty five hundred and
keep listening to the Wise Money Guys. John Scambray. I'm
here with my partner Juseppe Vescani, and if you're listening
for the first time, the Wise Money Guys Show is
brought to you by One Source Wealth Management. We are
an SEC registered Investment Advisory firm license number three one
(25:51):
nine zero seven eight. For more information and disclosures, you
can always visit our website which you can find multiple
You can find by going to wysmoneyguys dot com if
that's easiest to remember, or you can also go to
one source w M dot com. One being spelled out.
(26:14):
You can always email email us at question at wysmoneyguys
dot com, and our favorite is for you to give
us a call at nine one six nine six seven
thirty five hundred. Again that numbers nine six nine six
seven thirty five hundred. So continuing on just the basics
(26:36):
or principles of money management, and to finish off the
conversation about proper diversification, you know, being diversified amongst the
various investment categories to get the returns that you need
to have versus not having some sort of established goals
(26:57):
and objectives. Therefore, you know, if you didn't have those
goals and objective, then your portfolio, you know, you have
a smaller chance of success with achieving the investment returns
that you need if you don't have a plan behind them.
But finally, a very basic rule of thumb to you,
(27:19):
So if you are going to be say all in
stocks because you're still working, you've got at least five
maybe even ten years or more to go. Then use
a five percent rule of thumb and then decide to
dollar cost average from there or take profit from there.
Meaning if I'm going to have half a million dollars
(27:41):
in stocks because that's the size of my portfolio, well
then maybe have twenty five thousand in each investment so
that you don't overbuy one particular thing because maybe you
got a great tip. That's my favorite is when we hear, oh, well,
my friend, you know, knows the person who owns this
(28:02):
company or is a this, and I get the boy
those first of all, those never work out.
Speaker 3 (28:08):
Or you got into late because the euphori is built
up in a certain investment and you want to add
in and you're putting a bunch of money in, but
now now you've hit the top, and now that that
investment is starting to go down.
Speaker 2 (28:18):
So please don't use oh I heard from a friend,
or especially if you were in your your dentist chair
and you're talking about investments before or whatever and you go, oh,
I heard it again. Nothing wrong with potentially buying, you know,
some sort of speculative or startup or recent publicly traded company,
(28:41):
but use that five percent rule so that if that
tip doesn't work out, great, you know, you don't lose
fifty percent of your money because you bet the farm.
So and sadly, we've had clients that have taken out
money because, oh, their friends went into this thing and
it did incredible and now it's about to get this
(29:05):
that or the other. You know, they just signed new
contracts or I mean, we've heard it all. And then
they take out fifty thousand, one hundred thousand, quarter of
a million dollars and several years later they're come back
and they're they're sewing, they're trying to get their money out,
and guess what, it's gone and went up in smoke. So, anyway,
(29:27):
use that five percent rule on any investment you're going
to put your hard earned dollars in, and consider all
five classes of investments instead of just putting all your
money in stocks, or all of your money in bonds,
or all of your money in real estate, or all
your money in alternatives like bitcoin or commodities, or metals
(29:52):
like gold and silver. Although I do, like I've said
over and over and over again, goal's.
Speaker 3 (29:59):
Going to five thou almost every radio session, every radio session,
I do believe gold's going to five thousand.
Speaker 2 (30:06):
I do believe silver is going to one hundred and
then I think it's going to pause there and bounce around.
I think it could ultimately go higher from there. But
you were pointing out to our new client the other
day that gold over the last fifty years has been
more volatile.
Speaker 3 (30:24):
Well, I don't actual yeah, I don't know how long.
I think we did like twenty years and did analysis
on twenty years shooting the S and P five hundred
and gold because a lot of times people because you know,
our new client said, you know, I keep hearing you know,
I listened to different radio shows and you know online
and you know a question I have and this is
where it came up. What John's alluding to is he says,
(30:47):
you know, these guys are talking about gold, and you know,
put your money in gold. And by the way, there's
different ways to invest in gold.
Speaker 2 (30:53):
Right.
Speaker 3 (30:53):
You can do it in physical you can do you
know where it's more liquid, and you can do it
in stocks or.
Speaker 2 (30:59):
ETFs companies and mining company companies involve.
Speaker 3 (31:02):
Gold copper, right, So there's different ways. You know, if
you want to learn more about that, that's where you'd like,
you know, like to hear more information about it, you
can give us a call at nine one six nine
six seven thirty five hundred.
Speaker 2 (31:13):
In fact, before you go doing a gold IRA, know
that they're they're still very high commission based investments where okay,
you're going to put that physical gold in safe keeping
with a gold IRA company. That gold IRA company could
be charging you one hundred to three hundred dollars a
(31:37):
month for their IRA and safe keeping fee. And then
on top of that they you charge a ten percent
commission to buy and sell the gold. And remember gold
is pretty and metals are pretty ill liquid. You've got
to pay somebody to physically take that gold off of
(31:57):
your hand. And again you commission both ways when you
buy and sell it, and then storage and custodian fees
are extremely high, and it doesn't pay you a return
on your investment in the form of a dividend or interest.
So there are better ways to buy gold, And as
(32:19):
jo Seppi said, if you want to learn more about
that before you go parking, you know, hundreds of thousands
of dollars of your retirement into gold or silver. Give
us a call at nine one six nine six seven
thirty five hundred.
Speaker 3 (32:36):
But to finish a thought, you know, running back twenty
years and looking at gold and s and P five hundred.
Gold actually came back with a little bit more volatility
over that time period. So a lot of times it
has a misconception of I'm gonna put me put my
money in gold, or I heard these guys on the radio,
I saw this thing online, and I'm worried about the market,
so I'm worried about the economy or whatever the case
(32:58):
may be. So they're from going to put my money
in gold that's safe. It's not safe, right, It's not
as safe as cash, it's not as safe as treasuries. Right.
Those are actually true conservative investments money market cash, US
government treasuries. Gold typically gets to be in favor when
(33:18):
there are worries about the market, economy, or the dollar,
and that's what usually drives that that that commodity up right,
or unless it's being bought up. Countries have been buying
up gold, so that also creates more demand for it.
We see that in silver because the euphoria around AI
(33:39):
and all the data centers and now silver and or
more so than gold, right, and it's how much silver
is going to be used and so we're seeing a
run up in silver, but that also could be you know,
volatile as well on the upside, which everybody loves, but
on the downside, right, So therefore it goes back to
the diversification. You know, do we like gold, yes, does
(34:02):
it make sense for everybody? Know how much you know,
exposure do you need to have of gold? Well, then
your portfolio, your assets, that's where we dig in and
put a plan together. Look at your current assets, figure
out your timeline, your risk tolerance, how much what it
is that you need, and how your risk levels are.
And then from that point figure out you know how
(34:24):
much gold, how much bonds, how much stocks doing and
you over a portfolio, what's the current mix up of
it or the appropriate mixup of it.
Speaker 2 (34:32):
By the way, I just was playing with some numbers.
If if silver was one hundred dollars an ounce, and
you wanted to have one hundred thousand dollars of physical silver,
it would be sixty two point five pounds of silver.
So that's simply taking one hundred thousand, dividing it by
(34:55):
one hundred dollars an ounce, and then dividing it by
sixteen ounces per pound. You would have sixty two point
five pounds of silver. That's the other thing. I mean,
put that in your ruck set, right, Where are you
going to put that? You're gonna You're gonna put it
in a bucket? Yeah, well, and that's the take. That's
some argument. And you're going to put it in a
safe And that's the argument that.
Speaker 3 (35:15):
We you know, you and I have had on gold
and some clients and prospects. Is when you buy the
physical gold, whether or not it's like a safe haven,
like oh the economy fails or this or that, I'm
gonna I'll have gold, what do you do with it? Exactly?
You can't. You can't bite it, you can't eat it.
You can't. Nobody trades gold, not that I know of.
Nobody trades a bar of gold for goods and service.
Speaker 2 (35:38):
Right, Or you're going to take a coin and you're
going to bite a piece off of it and go
here you go for payment for it.
Speaker 3 (35:43):
Here's here's one. Yeah, So you can't. You're gonna have
to trade it in for US dollars or some other currency,
and then you can have that currency to trade for
goods and services. So to have the physical gold itself,
not only that, but you know, then you have the
risk of if you get robbed, what if there's a
fire in your house or all these other things. Right, like,
(36:05):
exactly how many people had, how many people have these
hard assets? Maybe that in the Paradise fires or the
Santa Rosa or the Palisades gone right, gone, I mean
it's not going to survive that exactly right.
Speaker 2 (36:16):
So, and don't misunderstand. We think proper diversification, being in
the different asset classes or different categories of investments, including gold,
is a good way to be properly diversified. But there's
better ways to buy gold or silver in the alternative
category of investments than just buying the physical metal. If
(36:39):
you have the physical metal and you've had it a
long time, and go fantastic, But to buy it now
this price is in any meaningful way and not have
cash flow or yield on it as far as a
dividend or interest is probably not the best way to
be buying gold and silver for your retirement in our opinion.
So you're listening to the wise money guys, john'scamerone Giuseppe Fiscani,
(37:03):
and we were talking about planning and diversification as the
basics for properly investing and managing your investments. And certainly
if you don't have a plan in place or you
haven't reviewed your plan in a long time, please give
(37:24):
us a call for a no obligation consultation. We will
do a planning consultation and planning meeting with you absolutely
no charge whatsoever or pressure. Call us at nine one
six ninety six seven thirty five hundred. Giuseppe did mention
you know target date funds and how we believe mutual
(37:46):
funds aren't that great when it comes to being truly diversified.
You're you're you're limited to what's out there. You're limited
by what they can and can't do inside of the portfolio.
So keep in mind that, and this is an area
that a lot of people don't realize well.
Speaker 3 (38:05):
And the target day fund is associated with the four
to one K plans, which plenty of people have, and
that's you know, their their main source of investing and
saving towards their retirement. And you typically have a narrow
menu of options, and then you're left with picking the
target day fund. If you don't have good guidance right
(38:25):
from you, for your plan administrator or whoever's helping you
with that, or you don't have a financial advisor helping
you and you're just resorted to the target date fund
and or you know, you have other options within your
four one K plan and you're not sure what the
appropriate mix up is. So there are other ways, and
that's what John's going to talk about.
Speaker 2 (38:44):
Yeah, so one of the nice thing And by the way,
we do manage four one k's for you know, closely
held companies and and our biggest one has I don't
know about one hundred employees. Our smallest one has maybe
fifteen employees. But what a lot of people don't know
(39:07):
is you might be with a very large employer such
as a hospital, such as a dignity or or cheiser
or one of those. And if you have, for example,
net benefits through fidelity, and it doesn't have to be
a hospital. We had another person who was with a
(39:32):
medical supply company and they were they had fidelity and
fidelity And if your employer allows you to have a
self directed option within your current four oh one K
while you're still working for your employer, you can hire
us instead of just going it alone. You can hire
(39:56):
us where that money is moved into the self direct
did option of the four one K plan, which then
allows you to have the world of investments available with
some restrictions like options or derivatives, but for the most part,
(40:17):
you then could have individual stocks, individual bonds, way better
choices when it comes to funds such as ETFs or
closed end funds which offer a lot or some alternative investments,
or gold you know, or or gold investments or silver investments,
on and on and on. If you're not sure whether
(40:40):
or not your your plan at your employer allows it,
guess what, it's public. We can look it up four
oh one K plans and the reporting and tax filing
per the ARISA requirements are public. We can look up
and see if your four oh one K plan at
(41:02):
your employer has a self directed brokerage option, and that's
very easy to do by giving us a call at
nine one six nine six seven thirty five hundred. So
let's just kind of recap some headwinds potentially this year,
(41:24):
this month, actually this month. Yeah, so just in the
next couple of weeks. Overall, we think it's going to
be a good year. We think there will be similar
volatility as as there was last year this year around
these events. The geopolitical events we mentioned, you know, the
she is now, the unrest in Iran, you know, do
(41:45):
we go into Iran, The situation in Venezuela, do we
go into Venezuela, you know, ongoing issues still obviously Russia
Ukraine hasn't resolved itself. The things put pressure on oil prices.
These things put pressure on the stock market because so
(42:07):
many things are are on a world scale these days.
That's why these geopolitical events could trigger some volatility in
your investments. Again, then you're going to want to be
properly diversified and not have a large concentration in just
one position or one category of investment. There's the other
things going on in January, Supreme Court decisions, the Continuing Resolution,
(42:32):
ending or running out of money, a government shut down potentially,
you know, potentially in FOMC meetings, and decisions on interest
rates with respect to inflation. So lots of things that
you should be, you know, cautiously optimistic about this year,
(42:54):
but you should also be prepared.
Speaker 3 (42:56):
Please.
Speaker 2 (42:57):
That's where profit taking comes into play. That's where dollar
cost averaging comes in, balancing, rebalancing. So many people that
are so fearful of pain one percent don't know that.
That's what our average fee is. By the way, and
we are both a Schwab platform independently and a Fidelity
(43:21):
platform independently, and so if you have a Schwab or
Fidelity account already, it's very easy to give us a try.
And we charge one fourth of our fee every quarter
in arrears, So that basically means you can give us
a try and not even pay a fee till April,
and it be a pro rated one quarter on top
(43:44):
of it, to see if we're as good as we
say we are, to see if what we do what
we say we do we do right.
Speaker 3 (43:52):
But all together constructing a portfolio, following up and making
sure that you're aligned and you're on track to hit
your fun So.
Speaker 2 (44:00):
Please don't go it alone. Give the wise money, guys,
John Scambray and Giuseppe Veascani. I call it nine one
six nine six seven thirty five hundred. Again, that numbers
nine one six, nine six seven thirty five hundred, and
so I think that's all we got so far, right, Yeah, Okay,
it's a wrap. I hope you enjoyed listening. Uh, please
(44:22):
come back and give us a listen uh next weekend.
And have a great day.
Speaker 3 (44:27):
Have a great weekend. Bye all.
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