Episode Transcript
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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):
Welcome to the Wise Money Guys Radio Show. I'm your
co host John Scamra. I'm here with my partner Jazep Visconti,
and we are certified portfolio managers that specialize in helping
people who are retired are about to retire manage their money.
If you like our show, give us a call at
nine one six nine six seven thirty five hundred and
we'll offer up no obligation consultation and I know that
(00:36):
will be a great use of your time if you
do give us a call. But more importantly, our first
of the Sacramento area workshop for people who are retired
are about to retire so retirees is Wednesday, not even
a week, yeah, I kim, Yeah, April thirtieth, from six
to seven thirty pm, which again is a Wednesday at
(00:59):
the Old Spaghetti Factory in Roseville on Sunrise called nine
one six nine six seven thirty five hundred. Again nine
one six ninety six seven thirty five hundred and that
is definitely a good use of people's time, especially with
everything going on right now. I mean I've been doing
the UH in person workshops now for almost six years.
(01:21):
In fact, I think it will be UH six years
on doing that in the radio in September, so getting close.
And I've never had one feedback form say that you
know that was a waste of our time. We didn't
learn anything. Gee wish we didn't come and hear what
(01:42):
you had to say and have a you know, free dinner.
It's never happened, so knocked on wood. I don't think
it's gonna happen for this one either. So if you're confused,
if you're worried, you're just concerned, you don't don't know
what to do with all this craziness going on. We
(02:06):
think we do. And quite frankly, if you go back
and listen to our shows that you can find on YouTube,
you can find podcasts on iHeart and Spotify, and you
search for us if you want to see reruns of
our things on by searching the Wise Money Guys, and
(02:28):
you'll find that on all the various different things that
are out there. And and quite frankly, we've been saying
you know for months now that when we thought stocks
were over overvalued or getting out over their skis, it's
getting lofty and maybe you should maybe you should look
at alternative investments that we've talked about a lot.
Speaker 3 (02:50):
Figured the beginning of the year was going to be bumpy,
just because there was going to be it's just a
drastic policy.
Speaker 2 (02:55):
Shift, yep, policy shift. It's certainly the biggest one of
all is the tariffs. But now we've been actually saying
and selecting cautiously stocks to add into or buy based
on you know, the dips. And quite frankly, if you
(03:16):
liked a mag seven stock before and we're adding to
it or holding on to it when they were up
thirty percent from here, you should like them even more
now that they're you know, down in between twenty to
thirty percent and somewhere around there, depending on which one
you look at.
Speaker 3 (03:34):
But what's the right mix for you, depending on your timeline,
depending on your goals, depending on what your you know,
retirement needs are, spending needs. You know, just had a
conversation with another potential client. They're selling a business, and
the question was, you know, what do we do after
the sell of the business. How do we invest the
(03:55):
money because they're used to the income coming in right
for the business that they've ran for so many years.
Speaker 4 (04:00):
Now it stops.
Speaker 3 (04:02):
You get a lump sum of money, and that money
needs to be put to work and into a portfolio
that's going to drive an income source for the rest
of their life and their retirement. And so that's what
we uncover within the workshop is give you a better
perspective of not only our thoughts of what are the
things that are going on the economy and the markets,
(04:23):
what are we concerned with, what are we looking at
as far as how to implement strategies to combat the
ups and downs and the uncertainties in the market, but
then also what is the typical allocation for our clients
as far as retirees you know that are now moving
on to the next chapter of their life and want
(04:44):
to be able to be comfortable and knowing that they're
going to have longevity and the assets that they've worked
so hard to save up over the lifetime.
Speaker 2 (04:50):
Yeah, and we get into the nitty gritty whether you
come and sit down with us for a no obligation
consultation which is absolutely free, or come to the World Workshop,
which is absolutely free. We're going to show you, you know,
an actual asset allocation that we think is timely, especially
(05:11):
for people retired. We're going to show you actual investments
that are are samples of what's in each of those
asset classes and why they're timely and why we think
they're appropriate for people who are retired. And and just
to give you a snippet, you know, our our thirty
(05:32):
our thirty seventy portfolio thirty percent stocks, seventy percent everything else.
And there's five classes of or categories of investments, So
thirty percent and seventy percent has a weighted yield?
Speaker 4 (05:49):
Are you giving it away already?
Speaker 2 (05:50):
Yeah, of I'm just giving the the.
Speaker 4 (05:53):
You leave the suspense the workshop.
Speaker 2 (05:57):
Well, I'm not saying what you want.
Speaker 4 (05:59):
You want to you want to give this juicy. I
want to give you over some chicken palm or some pasta.
You know what I mean? This is very true.
Speaker 2 (06:07):
But you know, okay, let me let me digress a
little bit. We had, you know, and just got a
very good new client rolling over money from various entities
that she worked with in the past over a thirty
plus year career. And you know, to your point, the
big thing that was on her mind, is all right,
(06:29):
what sort of income you know, passive income versus earned income?
Can I create from all of this?
Speaker 3 (06:36):
Also simplicity, you have multiple accounts all over the what
a mess? How do you track it? Do they complement
each other? As far as investments in one account versus
another account? What are they all doing? Am I on track?
And that's probably the simplest, simplest, you know, I guess
the valuable information that we'll be able to provide, especially
(06:57):
not only during the workshop to give a big, bigger picture,
but then also when we do the one on one consultations,
is help to answer that question?
Speaker 4 (07:05):
Hey, am I on track? Am I doing the.
Speaker 3 (07:07):
Right things for what I need for my money? As
far as my retirement needs or my financial goals, if
it's anything else outside of retirement, am I on track?
Speaker 4 (07:15):
And those are the those.
Speaker 3 (07:16):
Are that's what we really dig into and help give
you those answers.
Speaker 2 (07:20):
Yeah, and quite frankly, we'll we'll give you right up front,
you know, scenarios of Okay, you know what was your
take home pay? What was what? What do you think
your spending needs are? That's most important?
Speaker 4 (07:35):
Right?
Speaker 2 (07:35):
What are your spending needs in retirement, and then what
are your sources of income that's going to come in
to give you the money for those spending needs. And
then we'll analyze that pretty quickly. A lot of times obviously,
especially if you're retired. Now we're about to retire, it's
social security and social security. I mean, some of the
(07:58):
money that people get monthly is pretty high. I mean,
one person we were talking to two days ago, forty
two hundred was his projected social security a month, and
then even if his spouses wasn't more, and she got
half of that at twenty one hundred, you're talking sixty
three hundred dollars a month in just solid security benefits. Now,
(08:22):
when we drilled down into well, what are your spending needs,
they thought about ten thousand dollars a month, So they
still needed four thousand more dollars a month to cover
you know, their basic spending needs and retirement. And we went, well, okay,
on one point five million dollars to generate you know,
fifty thousand dollars a year. Now, we don't want to
(08:46):
oversimplify and say that's easy, but it's.
Speaker 3 (08:51):
Because you have to factor in inflation and taxes, and
that number goes up. So if it's four thousand dollars
a month shortfall now, five years from now, that number
is going to be bigger. Ten years from now, that
number is going to be bigger because everything's going to
cost more.
Speaker 2 (09:04):
But even if you just took five percent of one
point five million, that's seventy five thousand dollars a year.
And when they were looking at you know, what banks
are paying on one year CDs and things, which is
now three point five at JP Morgan Chase and or lower,
you know, now, all of a sudden, a net five
(09:24):
percent isn't as simple to come by. And so the
good news was when we showed them, you know, various
fixed income investments and various dividend paying strategies that could
potentially even be more than six percent, they got very excited, right,
And so those are the types of things that we're
going to dive into. Whether you meet with us now
(09:46):
or come to the workshop and then decide to meet
with us again. That's on April thirtieth, next Wednesday, from
six to seven thirty pm at the Old Spaghetti Factory
in Roseville on Sunrise called nine one six nine six
seven five hundred. You're listening to the wise money guys.
We probably should tell people how they can find more
information about us, which you can do by going to
(10:08):
wisemoneyguys dot com. From wisemoneyguys dot com, you can certainly
scroll through all the different resources that are on there,
and there are some great information on there. There's also
a live chat feature on there, so if you have,
you know, basic questions that are urgent, or you can
register for the seminar or register for a no obligation
(10:32):
consultation by going to wisemoneyguys dot com. Also industry disclosures
and things that you know need to be said or
at the bottom of the web page. And you can
also email us a question and then our favorite and
we really enjoy putting this on YouTube. You can also
see us on YouTube, so there's no excuse not to
(10:55):
listen to the wisemoneyguys dot com A Saturdays at eleven am.
You know, isn't a good time for you, you know.
With that being said, man, there's no shortage of things
for us to do for clients right now. I mean
to monitor the rebalancing, the allocation, the true differistication, some
(11:15):
of the things that people don't even know to look
for standard deviation, beta correlation. You know, on and on
and on are just crucial to you know, having the
type of portfolio that you don't panic about. And I
would say that's the biggest mistake that we see happening
(11:37):
with people right now, is they panic. And quite frankly,
you know they panic because here you're say you're fifty
five to sixty five years old, you've worked your whole life,
you're contemplating retirement, but you still have ninety plus percent
of your funds or investments are in stock and they're
(11:59):
swinging wild, and you you you eventually get emotionally to
a place to where you just can't take it anymore, right,
and then you make a bad decision. You get out
when things have gone down. For example, you may have
got out on Monday or last week, and then here Tuesday, Wednesday, Thursday,
the market got back everything that it got that it
(12:20):
lost on Monday and some of last week.
Speaker 3 (12:23):
And so but it's easy to it's easy to get
emotional about your portfolios and what to do if you're
watching the news all the time and you're connected to
social media and everything that's coming across because you know,
there are some economic indicators that have come down that softer,
like leaning economic indicators has come down, consumer sentiment has
(12:43):
come down, And then you have the talking heads and
investment firms and their thoughts and their forecasts. Recently, you
know black Rock, JP Morgan there their warning of possible
US recession depending on tariff situation. And that's a big uncertainty,
like what what is going to come of this whole
(13:04):
trade war and this tariff situation and how is it
going to impact the economy if it drags on or not.
But you know, negative news and bad news sells, So
what they focus on a lot of time is Okay,
here's here's a tarriffs and if this continues on, this
is an impact. There's not a whole lot of talk
out there of what if a deal is struck, what
(13:27):
if some of these things get absolved, What if you
find the middle ground and tariffs and bars lowered? You know,
how how is that going to impact growth or recession.
It's more of the negative news and that's what I
can understand that people you know, that don't have the resilience,
that don't have the experience or.
Speaker 4 (13:44):
The resources to get about it.
Speaker 3 (13:47):
And then start to worry, right, because then they think
because you know, and and the reality of things when
you look at where things are at year to day
s and P five hundred NASDAC, the rust of two thousand,
you know, it's down twelve thirteen percent to maybe sixteen percent.
Speaker 2 (14:03):
From their highs. They're all time highs.
Speaker 3 (14:06):
Well, and some of them are a little bit less
than that, yeah, right, And the all time highs for
most is in February. And but when you look at
the history of the stock market and the average correction
or pullback in any given year, it's just over fourteen percent.
Speaker 4 (14:23):
So what we're going.
Speaker 3 (14:24):
Through right now is not completely out of the ordinary.
What is out of the ordinary, and what was out
of the ordinary is how resilient and how much the
markets went up in twenty twenty three and twenty twenty
four with minimal pullbacks, right, and any little pullback that
had was maybe six percent or ten percent, and then
it was just literally by the dimp. And that's what
you saw, right, everybody just buying, buying, buying, buying, and
(14:47):
going after the big names, the and the and the
sparkly names the ai.
Speaker 2 (14:52):
Markets is a great way to put it right. All
you had to do was say, oh, we're going to
start researching, you know, whether or not implementing AI, how
we can implement a.
Speaker 3 (15:02):
McDonald's can come out and say we're looking into investing
in AI and implementing that in our corporation and business processes.
And it's like McDonald's is also a technology company.
Speaker 4 (15:14):
Right, But that's what was not ordinary.
Speaker 3 (15:16):
But people got spoiled, Right, They already forgot about twenty
twenty two and what happened then and how bonds and
stocks went down. And so that's why it was very
important and why we talked a lot in previous episodes
of rebalancing your portfolio, looking at other asset classes. If
all you had was primarily stocks or stocks in a
little bit of bonds, how you can invest in different
(15:40):
asset classes because investing in a stock fund or an
individual stock or a bond fund or individual bonds, there's
differences between them.
Speaker 2 (15:47):
Yeah, And you know, I think so much of the
news gets over sensationalized. I mean, the reality is is
a lot of the correction was, as you said, based
on leading indicators, but then the actual data isn't there
to support a recession. Let's let's look at it. I mean,
(16:09):
one of the reasons that a recession might happen is
super high and unrelenting inflation. Yet we're seeing energy prices
come down. I just filled up my truck tank for.
Speaker 3 (16:23):
That's not that's not a good comparison though, well as
California gas prices are just ridiculous.
Speaker 2 (16:28):
But still they're still down. I paid four fifty five.
I thought they're up, No, four to fifty five a gallon.
Speaker 3 (16:34):
But did you hear that Valero is going to be
shutting down one of the refineries, And I think exceon
Mobile I might be quoting this wrong, but there's a
couple of oil companies and I think I know what
No Conico Phillips I think is looking at shutting down
when they're oil refineries in California, which then could definitely
impact our gas prices here in California, even though oil
(16:56):
is coming down across the boarder.
Speaker 2 (16:58):
But but again, the things that are actually happen don't
support the drop in stock prices to the degree that
they dropped based on what could happen to your point.
And but the reality is is still you know, inflation
hasn't at least resurged to new levels, it's not really
(17:22):
actually exactly and unemployment hasn't spiked to un healthy levels.
From a spending perspective, from the consumer, I mean, have
you been into an empty costco? Have you been to
an empty gas station or an empty restaurant or an
empty store? No, So you got to sometimes from an
(17:45):
investments perspective, look with your own eyes and then you know,
judge whether or not you know the narrative, like Bowen
would say it first, Sure, Jim, you know that the
narrative is drastically different than the data. And the data
(18:07):
right now is not saying that we're that that we're
in or a recession is coming, yet the market has
priced it in. I look at a stock like FedEx,
and by the way, I think FedEx is a great
buy right here. That's you know, was three hundred dollars
plus and and it's it's not a tech you know,
(18:29):
uh trade, but was three hundred dollars implement. All they
need to do is say that. But because and they're
earning their their revenue, their earnings, their profits certainly haven't
gone down thirty plus percent like the stock has gone down.
Yet you know, here we are, you know, a FedEx
(18:51):
at two hundred and ten bucks per share when it
was three hundred and fundamentally, nothing financially really going on.
I mean, their deliveries aren't down, you know, they're there,
Like I said, their revenues not down yet the idea
that oh, we might well might happen in the future, Yeah,
what might happen.
Speaker 3 (19:12):
Well, that's what that's what the stock market is. It's
like a psychic tool. It's trying to figure out what's
going on in the future. And well, you're packing in
the press and I think it's relevant and improves our
point and what we've talked about in previous episodes of
what is going on in the market and why why
is it reacting the way it's reacting, And it's not
(19:33):
yet a recession threat or a recession being imminent, because
what's taking place in the market is the terriff and
that's being imposed on the market. It's like it's being
like it got injected with a drug and it's having
a reaction to that drug. But over here on the
other on the other hand, you have an antidote to
that drug that you just injected the market. And now
(19:55):
if you now there's a timeline, now you got injected
with this virus let's call it, right, and you're and
you're having a reaction to it.
Speaker 4 (20:02):
And that's what's going on in the stock market. Now.
Speaker 3 (20:05):
If you left if you leave it untreated, it can
continue on. It can continue on and faster into something else,
or maybe you get pneumonia or whatever. That's that's what
you that's what's going to be the recession. But over
here you have the antidote, right, or the or the
medicine that's going to take care of the virus. And
you can see that is exactly what's going on because
(20:28):
when you when you look at what's happened and the
ninety day delay in tariffs, as far as the elevated tariffs,
marc is shot up nine, ten eleven percent depending on
the induscy on that one day. Then it came back
down because tariff talk came back into line and the
whole thing with escalation with China and escalating the tariffs
amongst China and the US, and so.
Speaker 4 (20:48):
Stock market pulled back.
Speaker 3 (20:50):
Now there's some easing tension because of rhetoric around you know,
Trump saying well, I'm not going to fire JP Morgan
and we're going to try and cut a deal with
with terror, with the tariffs regarding China and bringing those down,
and what happened.
Speaker 2 (21:02):
Not fire, you did, I say fire, You said.
Speaker 4 (21:10):
You're next. J Morgan.
Speaker 2 (21:12):
I just want to make sure we're the antidote, not
the virus.
Speaker 4 (21:16):
But right exactly so.
Speaker 3 (21:19):
Powell right, softer rhetoric around Powell, softer rhetoric and communication
around China and trying to strike a deal with China.
And we saw three days, three up days in the
stock market. So what that proves is what we talked
about is that there's still time for that entity or
(21:41):
individual to take that medicine, to go ahead and take
care of that virus. And I think that's what we're
working with right here. And I don't think I don't
think the administration and they're very tidy in this well,
I'm not looking at the stock market. And we we
gotta take we gotta it's it's important, right.
Speaker 4 (21:55):
Yeah.
Speaker 2 (21:55):
You're listening to doctor Giuseppe Wisconti and doctor Johnson Cambrey
on investments, and we were talking about, you know, the
being the antidote, anecdote, anecdotal, the antidote. What were we talking.
Speaker 4 (22:13):
About right now.
Speaker 2 (22:17):
To the virus of people when it comes to investing,
and it is something that you know, is almost something
that could make you sick, quite frankly and really emotionally sick.
And you know, the main thing that I would caution
people here is, first and foremost, make sure you're working
(22:39):
with a fiduciary, not an insurance agent. Gosh, so many
people get suckered into, you know, long term commission based
annuities and things that just sound too good to be true.
In fact, I wanted to mention this because I can't
even believe you can get away with this. So I
(23:00):
heard on the radio a commercial saying basically, get guaranteed
six seven eight percent income for life. Now, what that
commercial was referring to was an indexed annuity or an
annuity with a guaranteed minimum income benefit. But what it
(23:23):
didn't say was that in order to get that minimum
guaranteed income benefit, you have to lose or spend all
of your money on an income plan within the annuity,
and then that's when the guarantee kicks in.
Speaker 4 (23:40):
And so it.
Speaker 5 (23:41):
Also that's when you win. It's kind of like Social Security,
right but exactly. But what it didn't tell you is
what the administrative costs of those guarantees and writers are
that you can put on an annuity which are usually
anywhere from one to three percent for all the various
things annually, which is usually more than what our annual
(24:04):
fee is. Our annual fee averages one percent. And so
the other thing that it didn't say in the commercial
is that, oh, the big fat, juicy commission check that
the person who suckers you in to the index, variable
or fixed annuity is going to get a five, six, seven, eight, nine,
(24:27):
ten percent depending on the annuity and how long you're
in a surrender period for up front. So I love
this commercial that says, oh, if you know they did
back off on the million.
Speaker 3 (24:40):
Not only that, but it's only guaranteed as long as
that insurance company is around. Now, the ultimate risk is
that insurance company whoever's providing that guaranteed income if they
go belly up, So you're not getting any more guaranteed income.
Speaker 2 (24:52):
So if you heard a commercial that sounds too good
to be true as far as it's it's promises of
guaranteed income, please give us call before you make that
call and make a drastic mistake with your money that
you can't unwind without a substantial back end costs penalty
(25:16):
you penalty. So call nine one six nine six seven
thirty five hundred. Again, that's numbers nine six nine six
seven thirty five hundred. A commission product is not a
fiduciary relationship. And so that's the other thing that annoys
the crap out of me is that you know, these
(25:37):
commercials will say, oh, we're fiduciaries, but yet then they're
advertising putting you in a commissioned annuity, which means that
they might have a piece or a part of their
business that might be fiduciary. Oh, but they really don't,
you know, use that they utilize suckering you into long
(25:57):
term annuity commitments that make them a lot of money,
not you.
Speaker 3 (26:02):
So those would be it could be other transactional things too.
I mean there's you know, the old school advisors, they
would do the A share, you know, mutual funds where
you get up front. I'm pretty sure they do. Yeah,
I know B shares don't for a long time. C shares,
I don't know what's happening with those. But you know,
(26:24):
all of those are are high high expenses, either upfront
or combined upfront with embedded internal expenses and.
Speaker 4 (26:34):
Yeah, so it's a lot that robs away from the performance.
Speaker 2 (26:37):
So no matter what you're you're thinking about doing, I
suggest one of two things. First, first call and register
for our workshop. These are the types of things that
we show you and talk about, and we talk about
you know, liquid versus ill liquid commission versus fiduciary. We
(26:59):
go over all those types of things and we answer
and stay usually for anywhere from a half hour to
an hour and a half after the seminar is over,
answering specific questions that people might not want to ask,
you know, in an open forum. So to register for
that which is next Wednesday. So if you're retired, you're
(27:21):
living off of your investments, or you're about to retire
and wanting to or planning on partially living on your investments,
or or going to live you know, exclusively on your investments,
and you know, that's the type of person who should
come to this dinner workshop. We we don't want you
to make a costly mistake, and we don't care if
(27:44):
you you know, end up hiring us or or wanting
to sit down with us. But come get get the
free information called nine one six ninety six, seven thirty
five hundred. Again it's April thirtieth, on Wednesday, from six
to seven thirty pm. So you know, some of the
things that are going on are really what's what's driving
(28:11):
you know, our the amount of people that are calling
us or or or working with us. I mean, isn't
it interesting that.
Speaker 4 (28:18):
As far as what's going on in the market.
Speaker 2 (28:20):
Yeah, the market, the news, I mean, and I'm I'm
happy about it. I mean, it's one of those things
where you're sad and happy at the same time. I mean,
I'm sad that that people are are are struggling, they're
watching their investments portfolios go down, or they made a
wrong decision, or they got suckered into a bad investment,
(28:41):
whatever the case. But I'm happy that, you know, so
many people are calling us and being referred to us
so that we could help them, you know, the best
that we can, right And and so it's just like
I said, it's just one of those things where it's
it's it's it's good and it's bad.
Speaker 3 (28:58):
Usually situations like this in the market stirs the pot,
right because your term that you like to use all
the time is if it's.
Speaker 4 (29:05):
Not broke, don't fix it.
Speaker 3 (29:07):
And when you're looking at your statement in twenty three
and twenty four and you had a lot of the
tech stocks and kind of the main players out there,
and it keeps going up and up and up and up,
you're thinking like, great, you know, I don't need to
do anything.
Speaker 4 (29:17):
I'm not gonna touch this. It's working perfectly fine.
Speaker 3 (29:21):
The mistake is the thought is it's working perfectly fine
right now, and so it's going to continue to do
so in the coming years ahead. But you know, the
reality is is what everybody's looking at. And I mean
the Mag seven I think I read the other day
was down, like, you know, almost thirty percent, just the
Mag seven. It's probably up a little bit now, but
from when I read that article versus the S and
(29:43):
P five hundred at that point in ten was down
sixteen percent, and then the equal way S and P
five hundred was down like single digits.
Speaker 2 (29:49):
Yeah, and again we talked in the beginning that you know,
the Mag seven, I mean, if you liked them when
they were thirty percent higher in price, why wouldn't you
like them here? I mean, Amazon, I don't think is
going to you know, uh, be affected as much as
people priced it down, uh for for the tariffs.
Speaker 3 (30:11):
I mean, well I got it. I got an interesting
story on that, because what's what's going on. It comes
from Amazon, actual things being bought on Amazon. But when
you tack on another you know, one hundred and three four,
my dad ordered an electric bike pditor already waiting for
it to get shipped.
Speaker 4 (30:29):
It was made in China.
Speaker 3 (30:30):
Okay, it's like the electric assist, right, it's pretty excited
about it. And then he got this notice it's order
is canceled. And then they went in and repriced the
bike double the price.
Speaker 4 (30:41):
Wow. Yeah, yeah.
Speaker 3 (30:43):
And with then I don't even know if they could
do that contractually, but they're they're like going back on
even just in the middle of the order.
Speaker 4 (30:51):
So I think those sort of.
Speaker 3 (30:52):
Things can impact impact Amazon, and oh they will be,
but there's going to.
Speaker 4 (30:56):
Be a pain point.
Speaker 2 (30:57):
But it impacts their lowest profits center, their lowest margin
business line, which is the online shopping. Their biggest profit
center is the Amazon Web service as that's where they
make the majority of their profit. And so because you know,
part of their their business model is at risk from
(31:21):
the retail side, you know, yeah, that did warrant maybe
Amazon coming down from its record highs. But you watch
the revenue and earnings and profit they're going to report
is not going to be, in my opinion, down as
much as the stock price has come down. And therefore, you.
Speaker 3 (31:43):
Meaning is where the stock price is now is not
warranting what everybody's thinking.
Speaker 2 (31:47):
Thirty drop in the stock price, and so I think
these are you know, times when you buy the dip.
And I also believe strategically that we're going.
Speaker 3 (31:56):
To be like Netflix, how ter's going to Netflix. Netflix
came down and they had earnings and it was good,
and now Netflix is doing well.
Speaker 4 (32:05):
It's fit's back to its record high.
Speaker 3 (32:07):
So it's being selective with some of the picks out
there and not just saying I want to buy everything
and anything type thing because it's all down, but going
through the process. And that's kind of a peak of
you know, what we look at in individual companies, is
you know, okay, this stock XYZ went down by thirty
percent because everything that's going on, everybody's being impacted. But
is it warranted that this particular company is being impacted
(32:29):
as much as it has with everything that's going on,
and is it going to have that much of impact
warranting a thirty percent decline or is that or is
that an overreaction and this might be a good time
to add in or put into a rat fold.
Speaker 2 (32:42):
So strategically, you know, consider buying the dip or dollar
cost averaging into things that that you already have that
you want to add more exposure to. And so we're
going to talk more about the area of investing that
we really have been focusing on lately and finding lots
(33:03):
of great lower volatility opportunity. You know, I can't help
but talking about the space. And when I say this space,
this category of investments outer space, well outer space. Yes,
this is from outer space, because it's that good. It's
that good. I mean, when you look at the volatility
of a stock versus the volatility of some of these
(33:25):
investments that we're going to talk about our category of investments,
or to continued uncertainty in the market, the the the
cash flow versus no cash flow, you know, and other
things price, you know, timing, potential growth you know versus
(33:46):
where some of the things are that we've mentioned already.
I mean, do you get into a Netflix here that
pays zero and dividends does nothing for your cash flow?
Speaker 3 (33:56):
I don't know, if you're just growing your assets and
you're not near retirement, sure, if you're nearing retirement or retired,
maybe not so.
Speaker 2 (34:03):
The PO and that's really the majority of our client
base is people who are retired and who you know,
either are trying to build or keep their assets of
size to pass on to, you know, who's ever important
to them, family charities, create their legacy whatever that is,
or they're relying on them for subsidizing their retirement and
(34:25):
can't have their their assets run out, you know, over
the course of their lifetime. And so one of the
key areas, and again we'll talk more about specific investments
in this category at our workshop on April thirtieth, is
the alternative investment space, right. I mean, if you don't
have alternatives in your portfolio or know what alternatives are,
(34:49):
especially if you're managing things yourself, or if you're working
with an advisor that has you in nothing but you know,
mutual funds, it definitely need to come in and see us.
But the alternative space is made up of of you
can call actually crypto blockchain technology. Yeah, certainly falls alternative asset.
(35:13):
It's an alternative asset class.
Speaker 4 (35:14):
It's earned its place in the asset class category.
Speaker 2 (35:17):
But we really like the private credit, private debt, private equity,
hedge areas of you know, alternative investments right now and
the the and you can talk a little bit about
this the volatility and how you measure that and how
that compares to say your typical stock or like a
(35:39):
mag seven stock or a bond. You're right, you know, so,
so really what is some of the highlights of the
alternative space comparing it to a stock or a box.
Speaker 4 (35:49):
It's the risk profile of it.
Speaker 3 (35:52):
And you know, with where we are right now in
the markets, even though we have you know, more of
an optimistic view more towards the back half of the year,
doesn't mean that we're we're we don't have any uncertainties
left in the market, because you know, there's still volatility
out there and we think they're probably going to continue
(36:12):
while all of this transition gets sorted out through the
tariffs and geopolitical conflicts what have you. But standard deviation,
we mentioned it before, is just a measurement of volatility,
you know, kind of the higher that number, the more
wilder roller coaster ride is going to be on the
up and downs, and these alternative investments that we look
to and add into client portfolios. That's appropriate, you know, they.
Speaker 4 (36:36):
Have you know, in the past three five years.
Speaker 3 (36:39):
Where we've had all these ups and downs of the
of the markets, there's there's standard deviations like two, three,
maybe even four percent, and when you look at bonds
and stocks, bonds typically are the more conservative asset class, like, okay, hey,
I want to be conservative my portfolio.
Speaker 4 (36:55):
Okay.
Speaker 3 (36:55):
Then the old you know setup was Okay, I'm gonna
put more assets and more exposure to bonds than stocks.
But twenty twenty two change that up. Not not to
say we're going to have another twenty twenty two situation,
but if all of the negative news out there of
oh the tariffs are going to impact inflation, inflation is
(37:16):
going to rise up, well, then it will have impact
on bonds and you will see more volatility in bonds.
But you know, bonds during that period of time, you know,
was five and six percent as far as standard deviation. Stocks,
I guess, and P five hundred was seventeen to twenty
percent during you know the last five years.
Speaker 4 (37:33):
So when you have an asset that's.
Speaker 2 (37:35):
A really big roller coaster ride.
Speaker 3 (37:36):
Yeah, that's like six flags. You know, that's exciting, exciting,
magic mouth. Yeah, it's not the little carnival you know
type things that's six cut, that's what you're saying.
Speaker 4 (37:47):
It's not.
Speaker 3 (37:48):
So you know, when you're getting asset classes that are
two three four percent standard deviation, that helps to smooth
out the right It doesn't take volatility.
Speaker 4 (37:57):
Completely out of it, but it helps smooth the ride out.
Speaker 3 (38:00):
And especially when you're getting distributions of like seven eight
to you know, low double digit, where it's actually paying
out a cash flow of seven to like ten or
level son on top of it, well, annualize, but then
it'll the distribution frequencies monthly. Now puts you in a
position where you're not having to sell off assets to
(38:25):
realize the cash to satisfy your cash flow needs because
of all of the you know, investments within your portfolio
are spitting out either or diving an interest, and if
it's healthy enough, that's providing your portfolio enough cash that
you're realizing to provide you for the cash flow that
you need, which.
Speaker 2 (38:43):
Is why you know the majority of our retired clients
have portfolios that are thirty seventy or forty sixty and
the most aggressive fifty to fifty meaning you know, anywhere
from thirty to fifty percent dividend paying stock and anywhere
from you know, fifty to seventy percent income pain investments
(39:07):
because the income paying investments are so good right now,
as you've said, low volatility, a small small peaks and
valleys compared to a stock or a bond, especially if
you look at periods like twenty twenty two where stocks
and bonds fluctuated you know, big double digits. And then
(39:29):
when you couple that with you know, dividends being paid
monthly or interest being paid monthly anywhere from six to
ten percent, you know, don't despair. There is still great
income investments out there that can help you, you know,
have the type of income off of your assets that
(39:49):
make your life easier from a spending perspective. In retirement.
We've come full circle on you know, what people should
consider when it comes to the types of things that
you know, their portfolio is made of, and we're going
to show you, you know, exact positions of those things
(40:11):
at our workshop on April thirtieth, Wednesday. In fact, this
is our the last radio show before that, so hopefully
I don't sound like too much of a broken record,
but we really want to help as many people as possible,
and quite frankly, we're not asking you to have a
million dollars or more like a lot of the advisors do.
(40:35):
Now you know you should have. Don't come to the
seminar if you don't, you know, utilize investments, you know,
for retirement, because then there's quite frankly not really all
like a lot we want to do for you.
Speaker 3 (40:48):
The typical portfolios and the types of instruments that we
use to to actually build out a truly diversified portfolio
that's a moderate moderate conservative, which is a typical average
as far as our cli intel is, really two hundred
and fifty thousand dollars is what's needed to have it.
Where you're building really your own custom mutual fund right
right once you start working with smaller, smaller amounts to invest,
(41:13):
then you're really only resorting to having to invest in
mutual funds and ETFs right kind of the plane vanilla stuff,
because that's really the only way you can be able
to truly diversify your assets.
Speaker 2 (41:23):
Yeah, I can't stand turning people away, you know. That's
always rubbed me the wrong way. When you hear the
You know, if you have five hundred thousand, seven hundred
and fifty thousand, one million, you can't even walk in
the door. But these I mean, we have the right
platform that we can support, you know, various varieties of people,
(41:46):
especially you know, no matter what your situation is, we
want to at least give you advice and counsel. Whether
or not you know we're a fit for each other,
that doesn't matter. We just want to help people with typically,
what's the most impactful thing in their lives. Right, it's
(42:07):
not the most important thing. Health is the most important thing,
but the most impactful thing too, maybe your health and
longevity is not having to worry about money. And that's
what our seminars are about. That's what this radio show
is about. That's what you know, our client relationships are about.
It's about helping people as much as we can so
(42:28):
they don't have to worry about their investments and their money.
So give us a call at nine six seven thirty
five hundred. Space is running out for that seminar next week,
so don't hesitate. Called nine one six nine six seven
thirty five hundred. You've been listening to John Scambray and
(42:48):
jo Seppe Visconti the Wise. Many guys, hope you enjoyed
our show and have a wonderful weekend.
Speaker 4 (42:53):
I have agree weekend. Hope to you to worsh up