June 19, 2025 • 43 mins
Whew, there is a lot of going on! The world's events fly fast and furious. That's were hosts John and Giuseppe come in. We have the knowledge to understand how the daily news will affect your portfolio, from unemployment numbers to the Fed Reserve chairman. We'll break it down for you. Plus, how One Source Wealth Management prepared for investing, fixed income opportunities, and our passion for active management. The Wise Money Guys!
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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):
Hello and welcome to the Wise Money Guys radio Show.
I'm your co host, John Scambrian. I'm here with my
partner just hop You Visconto, and we are certified portfolio Managers,
which means we are investment experts and we specialize in
helping people who are retired are about to retire manage
their money. And as always, if you like our show
or have any questions or want a no obligation consultation,
(00:36):
you can always give us a call at nine one
six nine six seven thirty five hundred. Also, this show
is now brought to you by One Source Wealth Management
powered by Farther, but our aria is still SEC Number
three one nine zero seven eight. For disclosures and more information,
you can visit our website which is Wise Money Guys Do.
(01:01):
And what's the other thing? You can always email us
a question, which you know, we get more people calling
than we ever have emailing on that and maybe it's
because of you know, our our typical audience who's retired call.
Speaker 3 (01:16):
They want to hear your lovely voice.
Speaker 2 (01:18):
Yeah, well that could be the case hopefully. Well, anyway,
you can email us at question at wismoneyguys dot com.
All right, so well I think we need to start with,
you know, the current events going on. I mean, certainly
this last week.
Speaker 3 (01:31):
With we're not short of them, that's for sure.
Speaker 2 (01:33):
By the israel I ran thing and did you see
that I ran bombed hospitals or a hospital And then
they say, oh, no, that was an accident. No it wasn't.
Those are guided missiles, it can't be an accident.
Speaker 3 (01:48):
Well, I saw a picture on social media and it
looked like you know, and it said this is not Ai.
This is an actual picture over Tel Aviv and it's
just like raining rockets and there's slides are it almost
looked like fourth of July. Yeah, it was crazy. My
great aunt actually lives in Israel and what a life.
(02:09):
I was talking to my other aunt asking how she
was doing, and just through communication with family, and she
said she called her and she says, oh, how are
you guys doing, you know over here in the United
States in California and they and she says, well, we're
doing Okay, we're doing o kid, but I'm calling. How
are you doing? She says, well, I can't stay on
the phone. I have to run down to the bunker,
(02:30):
you know here, And she said, okay, okay, we're good,
talk at you. I'll call you later. I got it,
We'll go down to the bunker. Yeah, this is unfortunately
normal life.
Speaker 2 (02:38):
We just take things surprising in the United States and
how good we have things. And that's why, obviously you
see so many countries trying to take advantage of the
United States and skirt our policies to try to get
in because we are the greatest country in the world,
and we love the fact that we're patriots. We love America,
(03:01):
and we love people helping that fight for America with
their investments and their financial planning and helping them, you know,
grow their assets and generate that legacy or that income
or whatever the goals may be. So in fact, if
and we just got another new nurse as a client.
(03:22):
So if you're in the medical profession, whether it's doctor nursing,
and boy, talk about the workload that people have in
California right now in the medical profession, I mean the
hospitals and the doctors' offices and the specialists they're jam packed.
Speaker 3 (03:39):
Yeah, we would love to have both been going to
them for sure.
Speaker 2 (03:42):
Yeah. Services up, Yeah, I mean we would love to
help you. And if you're fire or or police or
highway patrol or sheriffs, we have all of those clients
as well, and we love helping you, you know, with
your four fifty seven plan or your four oh three
B plan and or you know, considering is it better
(04:04):
if you're more for a profit company, is it better
to you know, take the income or roll over the
lump sum, And that might be a good topic today
because that is something that will help you determine and
we'll be able to quickly show you what your return
on investment is if you take your income from your retirement.
Speaker 3 (04:29):
So say you work for benefit or a pension.
Speaker 2 (04:31):
Yeah, yeah, Well, and let's say you're at Kaiser or
Sutter or or or ray Ley's. And I'm trying to
think of others at and t PG and E in
the area where they where you have a pension and
they offer a lump some rollover. So one of the
things we do is just quickly and mathematically just say okay,
(04:54):
well the income either unmodified or the income if you're
choosing espousal or a beneficiary benefit is x return on investment.
Typically we see that they're anywhere from three to five
percent is what the return on the investment is.
Speaker 3 (05:12):
Sometimes really high.
Speaker 2 (05:13):
Yeah, so every once in a while, but more often
than not, we see that the return on investment from
a percentage annually is pretty low. But every once in
a while we see one where we go, oh, you
got to take the monthly the monthly income. And we're
completely unbiased. We're fiduciaries. We're not going to try to
(05:36):
talk you into, you know, one way or the other,
but we want you to have.
Speaker 3 (05:41):
Just a mathematically makes sense exactly. And the other component
that we run into sometimes with clients or prospects that
are coming in to explore this is sometimes they don't
trust you know, their their pension or their corporation and
who's managing the fine point. You know, it has nothing
(06:02):
to do with their monthly benefit that they're going to
be receiving for in a retirement. Sometimes you say, yeah,
I just don't really trust them because they've made a
lot of changes in the past or reduce this or
whatever the kiss may be. But we we take we
take an analysis approach, you know, just using basic math
and figuring out can you take that lump sum if
(06:25):
you rolled it, rolled it over into an era, and
then generate similar or better income with having a myriad
of options.
Speaker 2 (06:35):
And the big piece is that if you can generate
a similar income on a on a relatively conservative basis,
then the other benefit is is you have that lump
sum to roll over and pass on to the next
generation or to your charities or whatever is important for you. You
have total converses. You know, if you take the income benefit,
(07:01):
then once you and your beneficiary, if you do choose
a modified benefit or gone, the lump sum's gone.
Speaker 3 (07:08):
Yeah. So that account that you've been saving or the
company now.
Speaker 2 (07:10):
For thirty years typically is what we see on average.
Speaker 3 (07:13):
Or if there's an emergency. You know, it's kind of
like Social Security too. You can't just go in and say, hey,
I want.
Speaker 2 (07:19):
After fifty grand.
Speaker 3 (07:20):
Yeah, something came up an emergency, I need fifty thousand
dollars and well, too bad. Yeah, But if you have
it and you roll it over in tenaira, you have
total control and autonomy to do that if need be. Yeah.
Speaker 2 (07:33):
So again, if you're one that's about to retire or
just retired and has it and have not chosen whether
you're going to take the annuity is really what it is,
which is just an income, a monthly income, or if
doing the lump sum is a more feasible choice, please
(07:55):
give us a call. We'll absolutely do that analysis for you,
will do it in a free retirement plan. Absolutely no obligation.
We just want you to be informed and do what's
ever best for you. Give us a call at nine
one six nine six seven thirty five hundred. Well, we
got off on a tangent there. We started to talk about,
(08:17):
you know, Iran and Israel, and the.
Speaker 3 (08:20):
Reason got off into pensions. I'm not sure how we did.
Speaker 2 (08:22):
I don't know either. That's that's what's so beautiful about
you know, this, this show is heck. We could talk
about anything, quite frankly, and a lot of it.
Speaker 3 (08:34):
But Iran, Iran, Israel. I think we're just going to
go on to other things that we're impacting the market.
That's where I was. We recently had the FMC meeting
and Jerome Powell, you know, had his speech s and
P five hundred has been or the stock market has
been a little volatile. Last Friday was a down day.
(08:55):
Then we've had some decent or relatively flat days from
there on out. But now we have some volatility because
of the geopolitical conflict. How do you now, how do
you best navigate that, you know, moving forward, and how
does that impact your over retirement plan? And those are
really kind of the two big things that stuck out
in this past week.
Speaker 2 (09:16):
So yeah, pretty much the stock market was pretty ho hum.
There was a little bit of movement, you know, up
and down h this week with with the bond market,
because interest rates at least got back down. The ten
year treasury got back down below four and a half.
It had spiked up to about four to seven. Now
it's down to four to three, and you know, and
(09:38):
that's when you see the bond market start to you know,
level out and get some sanity to it. But there's
still great rates out there despite the geopolitical things going on.
And really the battle because it is now a battle
between President Trump and Jerome Powell. Jerome Powell is clearly
making decisions not ba on what's good for the US
(10:02):
consumer and economy, but more based on his political you know,
allies or or adversaries and.
Speaker 3 (10:12):
Well, he's becoming more political and these days, these days
in a speech, bringing that into his rhetoric, right versus
before he would always steer clear of it.
Speaker 2 (10:23):
Yeah, And I think it's because he knows he's toast.
His his term is up in May, and he's not
going to be reappointed, uh to a new term by Trump.
So he's toast. And and the fact, the simple fact
of the matter is he is too late Powell, as
as Trump has now named him.
Speaker 3 (10:42):
They've proved, they've proven to you know, battling inflation. So
that's already one mark right that he was too late
him and yelling and admitted that they were wrong.
Speaker 2 (10:52):
So yeah, and you saw consumer retail sales slow a little.
Speaker 3 (10:58):
Bit, inflation when data has been coming down and becoming
softer than anticipated as well. So I don't know how now,
you know, in December he was able to cut rates
and then now all of a sudden, now that we
have some softer prints and inflation data and some weakening
and consumer spending, we have some layoffs that company, i mean,
(11:22):
Microsoft just announced that they're going to do.
Speaker 2 (11:24):
So the cuts were before the election. They were before
the election.
Speaker 3 (11:28):
Kind of my point.
Speaker 2 (11:29):
Yeah, And so then after the election, there's no there's
no data supporting cutting, but there has been data to
support cutting to be ahead of a downturn in the economy,
but won't happen. I think the economy is going to
go along fly fine, because that the signs out there.
And we'll talk about those when we come back. You know,
(11:51):
what really is the driver of our economy and whether
or not it goes into recession. And so you're listening
to the wise guys John Scambery and Deceptivescani and I
did want to rant a little bit because I don't
know if you've seen or paid attention to the news
the last couple of days, but what an absolute embarrassment
(12:13):
some of these Democrat politicians, uh and and leaders are.
Did you see the guy who he was basically a
nobody and he's running for something in New York and
and he tried literally to like escort criminal illegal aliens
(12:35):
and prevent ice from you know, taking custody of this
criminal illegal alien. So they arrested him and then he's
you know, he's all over the news in New York
because now, okay, he's he's running for something. That's good point,
you know, there's such phonies and such despicable free that
(13:00):
they're more for criminal foreigners. That's it, there is there.
There is no you know, narrative that that and no
data to support the narrative from these whack job democrats
that ICE is out there, you know, arresting criminal I
(13:22):
mean non criminal women and children. I mean, that's the narrative.
The narrative is that ICE is out there going into
these city legal legal, legal citizens with green cards or
work visas. It's not happening. They are getting rid of
the tens of thousands of disgusting criminal, you know, foreigners
(13:45):
that came into this country and continue to commit heinous crimes.
Speaker 3 (13:50):
Well, you know, I watched a video Arnold Schwarzenegger, which
you know I loved him when I was younger because
I was into fitness. I was a personal trainer.
Speaker 2 (13:59):
That was my You mean you were into Coln then
that wasn't a good impression.
Speaker 3 (14:03):
I was into Commando.
Speaker 2 (14:07):
I did like the Predator. Yeah, me and I got
one guy forgett. He was a wrestler and he's cut
and bleeding. Jesse, he goes, I ain't got time to bleed.
Speaker 3 (14:18):
That was me and my cousin Sala's favorite movie. He
still is. I mean, if it pops on TV, it's like,
all right, we're just gonna sity on a.
Speaker 2 (14:23):
Lot of Rambo from the eighties all that.
Speaker 3 (14:26):
Yeah, but he's you know, during COVID and all that stuff,
he's changed and and so I don't agree with some
of his rhetoric. But anyways, he was talking about immigration,
and I did agree with him on this, And I
forget what event he was apt. He was at a
podium and speaking and he was talking about immigration, and
actually he was on the view too, talking about this,
(14:46):
and he says he, you know, him, being an immigrant himself,
came to this country with nothing, and now he's achieved
you know, uh a great acting career, right, bodybuilding career, wealth,
uh yeah, really really real estate mogul and he says
all of that was only possible because America gave it
(15:09):
to me. And he says, you know, and he's of
the thought of he now needs to give back to America.
And you know, not only not only that, but follow
the rules right, be legal, you know, do do all
the necessary processes to come into this country, he says, so,
you know, for somebody to come in illegally or abuse
the system and and and play victim, right, doesn't play out.
Speaker 2 (15:36):
The other thing that just app you kind of have
to laugh at just the patheticness was you know so
and I think I've watched this on Hannity or Jesse
uh Waters, but they were showing clips of some of
the protests and this one woman was saying, who's gonna
clean your houses? Who's gonna, you know, mow your lawn
(16:00):
and progatory almost and it kind of is offensive. I
mean really in the minority, I would be taking offense.
Now Americans can't clean houses Americans and you know they
were all they almost make it a skin colored thing. Yeah,
it's just it's pathetic.
Speaker 3 (16:18):
And everybody's American. Like my my, my dad, My father
himself came from Sicily when he was in fourth grade.
All of his family came from Sicily, right, all legal
went through hold the whole process and created you know, lives,
great lives and owned businesses and so on and so forth,
and so everybody else. Everybody's American. I mean we identify
(16:39):
like you say, well what nationality are you Italian? But
reality is we're all American. Doesn't matter if you come
from Middle East, Asia, right, Europe, different countries, because we're
just a melting pot. But it's different when you cross
over illegally, you're trying to fly under the radar. Then
you're then on top of it, which number one is
breaking law. Then you're breaking other laws. Right, you're becoming
(17:03):
either burglar or murder or whatever the case may be.
Speaker 2 (17:07):
Well, and Trump, like you said, he he loves the
Iranian people, he loves the you know, Mexican people, and
on and on and on and and it's just the
extreme government, the extreme government, the extreme leaders.
Speaker 3 (17:22):
The same thing with the same thing with China.
Speaker 2 (17:23):
China, I mean the Chinese culture.
Speaker 3 (17:26):
Put an infinite term for himself.
Speaker 2 (17:28):
Exactly right, And it's that it's the And the funny
thing is is what I don't get is and you
see how this affects, well, like the Iran Israel thing,
how it affects oil prices. They've been price the price
per barrel of oil has just been.
Speaker 3 (17:45):
Crazy.
Speaker 2 (17:46):
And and at a point, you know that it initially
helps some of the oil stocks and some of these
and then and then it gets to a point where
then it hurts that the oil stocks or oil transportation
or refinement. So on and so.
Speaker 3 (18:01):
And one of the one of the threats, since you
brought that up, is you know, I was reading Iran
can just threaten. One of the problems that could arise
is that Iran could just threaten that they're going to
be going after ships in the Strait of Hormuz or
Humoi whatever. I don't know he pronounce it, you agree
with me, meaning that you can't pronounce it?
Speaker 2 (18:21):
Yeah, I'm good. I want I always want to say
vermouth like you're put in put in a martini.
Speaker 3 (18:28):
It's a cocktail. Yeah. But they could just you know,
put the thread out there, not even have a military
equipment out there to show that they have actual legitimate
threat towards ships, and the insurers of those cargo ships
right transporting oil will not ensure those ships, and therefore
those shipping companies are going to say we cannot take
(18:49):
that path. And that can really impact the price per beryl.
I mean, I've seen some estimates where it can go
up to even one hundred and fifty dollars per barrel,
depending on if that were to take place and it
was an extended period of time, which then that would
really trickle in not just oil and gasoline, but it
can trickle into other areas within the market and the
(19:13):
economy that can start bringing things down. I mean, I
m as suits supply management, which is a measurement that
another economic indicator. Really the line in the sand is fifty.
Anything above fifty is expansionary and anything below the number
fifty is contract contraction or risk of Hey, things are
really slowing down. We kind of got to watch out
(19:33):
and right now where we're at because we're at high
rates and fed share Powell Powell Feedshir Powell has kept.
Speaker 2 (19:40):
Rats too late, power to.
Speaker 3 (19:44):
Say, not as much of a tongue twister, right, has
continue to keep rates high. Then that and things are
continuing to slow down with some of these economic economic
indicators are suggesting. And then if this geopolitical tension, and
especially in the Milise continues to threaten, right, the cost
of energy.
Speaker 2 (20:04):
And you impact yeah, you impact energy or the cost
energy that that's going to that's going to you.
Speaker 3 (20:10):
Know, kind into profits well, and it's going to create
it's going to create that stagflationary threat again, right, which
is slower growth but higher interest rates and higher borrowing.
Speaker 2 (20:21):
And again and inflation too late. Powell will be at fault,
and he will go down as one of the worst
Fed Reserve chairman's that we've had a recent you know,
fifty years.
Speaker 3 (20:33):
Part partly in his defense, So it's not it's not
all him. It was astration. All the spending on the
fiscal side, which really contributed to a big portion.
Speaker 2 (20:43):
Of this, wasn't political, you know, talking to he chose,
not chose risks or working with the administration to say, hey,
you got to reign in the spending. If we're going
to reign in inflation.
Speaker 3 (20:55):
And and how this system is set up, you can't.
They should because that's what makes sense. But yeah, and
it's yeah, he didn't choose to be talking about how
politics or current politics and fiscal policy could be or
not impacting inflation. But now all of a sudden he
is with a whole terrort.
Speaker 2 (21:13):
So as we were sitting here talking, I pulled up
on a big screen here in front of us, straight
of horror moves. So do you say it horror moves
or home or moose? Not sure, but it's h m
u Z straight of horror move. I think it's horror moves.
Speaker 3 (21:30):
Yeah, that's probably not.
Speaker 2 (21:31):
That clearly, we've never been to that part of the world.
We'll have to use AI. But things are crucial to
when it comes to making money on your money and
doing that in the most conservative way that you can.
You can give us a call if you would like
a no obligation consultation, or to get a free retirement analysis,
(21:56):
or to ask us a question. We'd be happy to
spend some time with you. Give us a call at
nine one six nine six seven thirty five hundred. By
the way, if you're in the Bay area or in
the Reno, Nevada area, we also have offices that we
can meet with you in Walnut Creek or in Reno.
(22:17):
And that's how far our show actually reaches. Our our
latest client just came to us from the Bay area
who's a retired nurse. And and you know we're our
show's growing, so you know that's so sound waves on
the back or anything.
Speaker 3 (22:36):
So sound waves go further than we thought. Yeah, radio
radio waves.
Speaker 2 (22:41):
Yeah, Well, we love KSTE because it does. It goes
into the Bay area and almost over to uh Nevada
and and up and down you know, north and south
in California. So it really is a great partner. But
besides that, we were we were just diving into the
weeds a little bit. It on on the risks really is.
Speaker 3 (23:04):
What everything's talking about in the world, everything.
Speaker 2 (23:07):
Going on in the world, and the reason why we're
we've been talking about that so much this morning is
is that's what you know, risk mitigation is about. That's
one of the main reasons why you hire us is
we focus on risk first, income second, and growth third.
And when you put that all together with active money
(23:30):
management from highly experienced, credentialed portfolio managers like Giuseppe and I,
that's something you got to have these days, in my
humble opinion, And so right off the bat, you know,
we're suggesting, you know, various things, but if you're working
(23:52):
with somebody who is always taking a static approach no
matter what is going on, you absolutely should give us
a call at nine one six nine six seven thirty
five hundred to arrange a no obligation meeting near you.
Speaker 3 (24:09):
I'll make a point just to add on. You know,
this was brought up in our last you mean you
want to talk, I mean, if you'd rather not go
ahead please, but you know in our last meeting with
our newest client, you know, she she mentioned, you know,
one of the things that was I don't know if
it was a concern, but something that she had paid
(24:31):
attention to was, you know, she had all these things
in this portfolio, and then when she had some questions
the financial advisor, would you know, schedule a call and
they're like, oh, you know, we'll bring in, We'll bring
in the portfolio, bringing the portfolio manager or this third
party manager whoever to chime in so they can talk
more details about what's in the portfolio, maybe why, why
(24:53):
the changes or what what took place, or so on
and so forth, and and with us that that's not
what you're going to get. We're not to just gather
your assets and then take those assets and then.
Speaker 2 (25:05):
Farming mouth to somebody else.
Speaker 3 (25:06):
Yeah, farm out to some other investment firm that they'll
manage it. And then they're making the changes, you know,
and then you you have a call with us asking like, hey,
I looked at my last statement or quarterly statement. I
noticed this changes X and y and so on and
so forth. You know, what was the reasoning behind that
or why or whatever, And we really don't know because
we're not doing it. We're not we're not pulling the
(25:26):
levers or pushing the buttons, and that's not the case,
because that's exactly what we do do is we are
the ones who are putting the thought behind what's going
inside of the portfolio, you know, setting up the criterion
and the guidelines of what's going to be in the portfolio.
And if there is a change, there's a reason why
there was that change, and you can you know, speak
(25:47):
to you know, get it straight from the horse's mouth
per se of what's actually taking place in your portfolio. Well,
which is which is not common these days really in
this industry.
Speaker 2 (25:56):
Yeah, you're right, but if you think about it, even
benefit you didn't even touch upon is Listen, when you
bring in, if you're an advisor and you bring in
a third party to your client's relationship, that that third
party doesn't know squat about you our client, nor do
they care, and you're probably just one of thousands. And
(26:19):
so it always, you know, boggles the mind that you know,
people pay advisors and then they have them in third
party you know, products or third party management that have
absolutely no relationship with you, no care in the world
of how you're impacted by these things we're talking about,
(26:42):
especially if they're impacting your life and your investments in
your you know, livelihood where we that's probably the main
reason why we don't farm it out to others. And
also that's the best part of what we do. We
love actually being response for the portfolios that we design
(27:03):
based on your goals, your objectives and all those things
that matter to you, versus just you know, farming it
out to somebody else, and well you.
Speaker 3 (27:12):
Lose touch, right, there's there's a disconnect there, and then
you always have to you know, as a financial advisor,
it's more more instead of a financial advisor, it's more
of kind of like a relationship manager.
Speaker 2 (27:22):
Yeah right, yeah, but yeah, it's just well you're you're
a broker. You're still back to the days of where
you're just a broker. You sell this product, this advice,
that tool, whatever, and then you just move on.
Speaker 3 (27:34):
So if you have a whole shelf behind you of
all these different products, yeah, and somebody comes in and
then you say, oh okay, oh yeah, yeah, you get
this one and this one and that'll be you know,
three thousand dollars in commission.
Speaker 2 (27:47):
And while you're at it for the low low price
of you know, and we're going to throw in some
ginsu knives. I mean, that's what advisors, in my opinion,
especially at the big firms and especially the big custodians,
have become. They don't have and aren't trying to remain
and and and continue a close personal relationship with their clients.
(28:12):
Now that doesn't mean, you know, we're trying to uh
be that bad mouth them. Well we're not. Yeah, we're
not trying to bad mouth other other firms or other advisors,
but there are.
Speaker 3 (28:25):
We're not trying. Plenty of good advisors out there, So.
Speaker 2 (28:29):
We're not trying to get to a thousand clients or
ten thousand clients like some.
Speaker 3 (28:33):
Of the because then you have to farm it out.
Speaker 2 (28:35):
Then you do have to farm it out, and then
you no longer care whether a client is making money
losing money.
Speaker 3 (28:42):
You start and it's not a matter of caring, because
there's a lot of advisors that you know that that
do care. I mean, we work for big firms, so
we were in that situation themselves, not like we've always
been in this situation.
Speaker 2 (28:50):
No, I you when you get too big, you yeah,
you start losing touch. You lose touch, and therefore that's
the same as not carrying. In my opinion in because
you just care more about getting more clients and then
you know what's happening to an individual.
Speaker 3 (29:08):
And there's benefits you know, of of the big firms
out there, and I think for the customer or the
client out there, there's a sense of uh stability or
calmness to be with a big firm with a big
brand name, right because they say, oh, we can easily
the trusts, right, that wall that that which is huge
is already kind of broken down, right. It's it's they
(29:31):
can easily trust just because they have that brand name.
Speaker 2 (29:34):
Now that you're just you just nailed something big.
Speaker 3 (29:37):
Yeah, you know, I'm ready for it. Are you ready?
Speaker 2 (29:39):
Well, so we are a big firm and we're affiliated
with the biggest firms in and that's where I was
not only in the industry in the country I did.
I spoiled it for you. Go ahead.
Speaker 3 (29:52):
Yeah, And it's it's it's having the the the wealth
of resources and tools and support. And that's part of
the reason why John and I decide, you know, we've
talked about it in a few past episodes, to partner
with farther because they are a bigger firm, they have
you know, one hundred and fifty support staff that we
(30:13):
can lean on to help with all the operational administrative
to run more efficiently, and we can provide a better
client experience and spend more time with our clients because
we recognize that right where where we start to get
to capacity and then we say, okay, we either need
to start hiring more people or in this case, we
decided we're partnering with another firm which is not has
(30:35):
nine billion assets center management, but then more importantly has
way more tools. So now we just added a whole
bunch of more tools to our toolbox, capability, more technology,
and additional support staff. Yeah, if you're not, if you're
not expanding your your technology suite of things that as
(30:58):
a money manager, as an advisor, whatever you want to
call yourself, I mean, you're you're you're falling by the
wayside these these days. But the but the.
Speaker 2 (31:09):
Real part that I like is that because we're affiliates
of both Schwab and Fidelity, and and we keep talking
about this new client from this this week is she
was Fidelity and she worked for a corporation that had
a pension and you know she wrote she before us
(31:29):
rolled that pension to an IRA and then we don't
even have to do new paperwork. So if you're already
a fidelity or a Schwab client, or a Goldman Sachs
client or inactive brokers, yeah, uh, you don't even need
to open up a new account to to hire us
(31:52):
to help you with you know, today's crucial, you know,
active management of your portfolio. I mean it's crucial. And
so speaking of active management of your portfolio, if you're
managing things yourselves and or you know you you you
do have what we would say is a static advisor.
(32:14):
You know, in our opinion, you do want to be trimming. Uh,
you know your over exposure to stocks and it's still
a good time to you know, add fixed income to
your portfolio. And you can give us a call it
nine one six nine sixty seven thirty five hundred if
you have any questions or want to come in for
(32:35):
a no obligation consultation. Again, that number is nine one
six ninety six seven thirty five hundred to arrange a
no obligation consultation at an office near you. But this
is my favorite part of the show where we dive
in a little bit more into the deep end of
specific type strategy of investment strategies that could really help
(32:59):
people and or give you an example of the things
that we do to help people with their money. So
I mentioned fixed income, and then I mentioned another investment
that we would talk about. But let's talk about both
first and foremost this fund that we like, this private
(33:23):
credit fund. Walk us through how that thing's been performing
since twenty twenty two. And keep in mind that any
specific investment, kind of area, sector type that we talk
about is always only just a small piece of our
(33:44):
client's overall portfolios. And never do we put more than
five percent or around five percent, depending on the risk
level of a particular position in somebody's account. And then
if it gets way out of whack where it grows
to being a significant portion, ten, fifteen, twenty percent, will rebalance.
(34:05):
And that's really what active management is. It's not day trading.
It's it's constantly making sure that the areas, the types,
the allocation of investments are you know, meeting our client's
objectives and are timely you know, for a current year,
(34:28):
a current you know, one, two, three, five year time
horizon versus going, oh, this is good for the next
five ten years. You don't need to do anything. That's
not the case when you're retired or close to retirement,
because you don't have five years, ten years or more.
Typically two make up a big mistake, a big risk
(34:52):
that you shouldn't have taken. And that's where this fund
comes in. That you'll have to give us a call
or come in and see us to know which one
it is. But we're going to talk about it just
generally and how it fits into most of our clients' portfolios.
Speaker 3 (35:12):
Right, Yeah, and I think this really fits well into
some portfolios, and especially given you know, looking at more
recent times twenty twenty two, because twenty twenty two, you know,
we've talked about it before, that was a year that
it was it seemed like there was no nowhere to
run to hide, now right, I mean if or and
certainly not stock, right, if you had a traditional portfolio
(35:34):
of stocks and bonds, I mean both of them went
down by double digits. Bonds by over ten percent, depending
on the industry that you're tracking, could be anywhere from
down twenty to down thirty four to thirty five percent,
So was pretty devastating on both ends. So you know,
some of the alternative side of things of investments. This
fund here, which is focused more on the private private
(35:56):
credit sector of alternative funds, were fun but it was
incepted in May of twenty twenty two. But if you
track from May to twenty twenty two through end of
May of this year, the average annual return of it
has been about eight point six percent average only return,
which is a great rate of return if you look
(36:18):
at the.
Speaker 2 (36:18):
SMP five hundred are retired and needing to be more conservative, right,
And just.
Speaker 3 (36:24):
In comparison, the Bloomberg US Aggregate Bond Index, which is
just the index for bonds out there, during that same
period of time, the average under to return was one
point seven percent roughly. So you have eight point almost
six percent and about one point seven percent bonds, which
(36:44):
bonds are supposed to be conservative. And then when you
use a measurement of risk or volatility, which we've talked
about before, standard deviation. The higher the standard deviation number,
the more wild that roller coaster ride is going to
be on the ups and downs, more volatile. The fund
that is focused on private credit, and this particular one,
(37:06):
because not all are equal, has a standard deviation under two.
It's one point ninety four percent during that period of
time from twenty twenty mid twenty twenty two to through
the end of May of this year. Bonds at the
same time period almost six point seven percent standard deviation,
(37:26):
so more than three times the volatility of this fund,
but you're getting what six times almost the return the
average ender return just to just to put it in context,
S and P five hundred during that same period of time,
right fourteen a little over fourteen percent average ender return,
(37:47):
but the standard deviation is over eighteen percent.
Speaker 2 (37:52):
So that's where most people make a mistake, right they panic.
So you know, did you lock in and stay in
your SNP index fund or or your stock that's part
of the five hundred that are in the S and
P five hundred when you saw it go down thirty
percent in twenty twenty two, go up in twenty three
(38:14):
and twenty four, but then go down you know, twenty
percent potentially in twenty twenty five. And that's why you
need folks that don't get emotionally tied. They focus on
your goal and your objective and so and what those
minimum returns to objectives are. So you know, again, if
(38:36):
you need an eight percent return, you're not going to
get that in in you know a CD or a
treasury or a savings account or a money market and
you certainly if you need that, don't need to go
to you know, stocks and stock funds if you don't
need that risk. So this is a great example of
(38:58):
how to get an eight percent return without necessarily having
the roller coaster ride of the stocks or.
Speaker 3 (39:06):
Of bonds too. Yeah, right right, And that's a big
piece is how do you you know, what components can
you put within your portfolio to divers diversify it, right,
because diversifications used all the time that term, but how.
Speaker 2 (39:20):
Can you put all your eggs in one basket? And
we always find that people have all their eggs in
one basket, even when they don't think they do.
Speaker 3 (39:26):
But even when they have acid classes. Like traditionally speaking
over the long term, and it did work out in
two thousand and eight, stocks and bonds when stocks went
down tour in two thousand and eights, you know, the
bonds in your portfolio helped buffer that blow. But in
twenty twenty two that wasn't the case. The correlation was
both down, both were down. Yeah, So having the wherewithal
not only that, but then also having the choice, right
(39:48):
because there could be some platform that you're or brokerage
that you're part of that doesn't offer these types of
funds or types of investments within it, and it's more
of the traditional types that that you're subjected to.
Speaker 2 (40:01):
Well, not only that, but many firms block their advisors
from doing all different types of alternative investments or strategies.
They don't deem them as qualified. And that's where our
almost combined fifty years of experience and helping people of
all walks of life through good markets and bad, good
(40:25):
economies and bad you know, so on and so forth.
You can't replace and so but but go on.
Speaker 3 (40:33):
The other that we've talked plenty of times, which is
great for these kind of uncertain times. Depending on if
his Middle East tensions continue to escalate, price per barrel
like we talked about, continues to increase.
Speaker 2 (40:49):
The treasury yeah, and then you.
Speaker 3 (40:50):
Know has an impact in the markets and the economy.
You know, what do you do? How do you how
do you keep your portfolio continuing to working and generate
the cash flow and the returns that you need at
the same time. Shaving risk one of the other areas
that we like, and we're taking advantage of especially when
volatility is picking up, is structured investments, and we have
(41:14):
one that's coming up that we'll be putting in some
client portfolios that makes sense for coming up next week,
and that's going to be providing a potential return of
eleven and a quarter percent per year, but also provides
a thirty percent downside barrier, meaning that you know, as
long as it takes a look at it every month,
as long as the three indices that attracts does not
go down by thirty percent or more on that given
(41:37):
observation date, it gets paid out one twelfth of that
eleven and a quarter percent, which is going to be
just under one percent a month. And it does that
for two years, which is nice. The only risk is
if the issuer and these issuers are huge main investment
banks that are a credit quality or higher, goes up, defaults,
(41:58):
or you know, you hold it and then at the
end of the term, you know, at two years, let's say,
for example, specifically on maturity date, one of the indices
that it's tracking the worst performer is down more than
thirty percent, then you'll participate on a one for one,
but you often but you're also still collecting all of
that return that you've collected in the previous two years
(42:18):
that you have to add back in.
Speaker 2 (42:20):
For more information or for a no obligation consultation, give
us a call at nine one six nine six seven
thirty five hundred, or you can go onto our website
as at Wysemoneyguys dot com and click on the contact us.
Fill out the information and Kathy will give you a
(42:41):
call to schedule and appointment at an office near you.
So I hope you enjoyed listening to the Wise Money
Guys this fine Saturday morning.
Speaker 3 (42:50):
You can also visit us if you want to see
us live is on YouTube and you could just search
the Wise Money Guys in YouTube and you'll be able
to see all of our past fait videos and this
one as well.
Speaker 2 (43:01):
Have a wonderful weekend.
Speaker 3 (43:03):
Talk to you next week by all M.
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):
Hello and welcome to the Wise Money Guys radio Show.
I'm your co host, John Scambrian. I'm here with my
partner just hop You Visconto, and we are certified portfolio Managers,
which means we are investment experts and we specialize in
helping people who are retired are about to retire manage
their money. And as always, if you like our show
or have any questions or want a no obligation consultation,
(00:36):
you can always give us a call at nine one
six nine six seven thirty five hundred. Also, this show
is now brought to you by One Source Wealth Management
powered by Farther, but our aria is still SEC Number
three one nine zero seven eight. For disclosures and more information,
you can visit our website which is Wise Money Guys Do.
(01:01):
And what's the other thing? You can always email us
a question, which you know, we get more people calling
than we ever have emailing on that and maybe it's
because of you know, our our typical audience who's retired call.
Speaker 3 (01:16):
They want to hear your lovely voice.
Speaker 2 (01:18):
Yeah, well that could be the case hopefully. Well, anyway,
you can email us at question at wismoneyguys dot com.
All right, so well I think we need to start with,
you know, the current events going on. I mean, certainly
this last week.
Speaker 3 (01:31):
With we're not short of them, that's for sure.
Speaker 2 (01:33):
By the israel I ran thing and did you see
that I ran bombed hospitals or a hospital And then
they say, oh, no, that was an accident. No it wasn't.
Those are guided missiles, it can't be an accident.
Speaker 3 (01:48):
Well, I saw a picture on social media and it
looked like you know, and it said this is not Ai.
This is an actual picture over Tel Aviv and it's
just like raining rockets and there's slides are it almost
looked like fourth of July. Yeah, it was crazy. My
great aunt actually lives in Israel and what a life.
(02:09):
I was talking to my other aunt asking how she
was doing, and just through communication with family, and she
said she called her and she says, oh, how are
you guys doing, you know over here in the United
States in California and they and she says, well, we're
doing Okay, we're doing o kid, but I'm calling. How
are you doing? She says, well, I can't stay on
the phone. I have to run down to the bunker,
(02:30):
you know here, And she said, okay, okay, we're good,
talk at you. I'll call you later. I got it,
We'll go down to the bunker. Yeah, this is unfortunately
normal life.
Speaker 2 (02:38):
We just take things surprising in the United States and
how good we have things. And that's why, obviously you
see so many countries trying to take advantage of the
United States and skirt our policies to try to get
in because we are the greatest country in the world,
and we love the fact that we're patriots. We love America,
(03:01):
and we love people helping that fight for America with
their investments and their financial planning and helping them, you know,
grow their assets and generate that legacy or that income
or whatever the goals may be. So in fact, if
and we just got another new nurse as a client.
(03:22):
So if you're in the medical profession, whether it's doctor nursing,
and boy, talk about the workload that people have in
California right now in the medical profession, I mean the
hospitals and the doctors' offices and the specialists they're jam packed.
Speaker 3 (03:39):
Yeah, we would love to have both been going to
them for sure.
Speaker 2 (03:42):
Yeah. Services up, Yeah, I mean we would love to
help you. And if you're fire or or police or
highway patrol or sheriffs, we have all of those clients
as well, and we love helping you, you know, with
your four fifty seven plan or your four oh three
B plan and or you know, considering is it better
(04:04):
if you're more for a profit company, is it better
to you know, take the income or roll over the
lump sum, And that might be a good topic today
because that is something that will help you determine and
we'll be able to quickly show you what your return
on investment is if you take your income from your retirement.
Speaker 3 (04:29):
So say you work for benefit or a pension.
Speaker 2 (04:31):
Yeah, yeah, Well, and let's say you're at Kaiser or
Sutter or or or ray Ley's. And I'm trying to
think of others at and t PG and E in
the area where they where you have a pension and
they offer a lump some rollover. So one of the
things we do is just quickly and mathematically just say okay,
(04:54):
well the income either unmodified or the income if you're
choosing espousal or a beneficiary benefit is x return on investment.
Typically we see that they're anywhere from three to five
percent is what the return on the investment is.
Speaker 3 (05:12):
Sometimes really high.
Speaker 2 (05:13):
Yeah, so every once in a while, but more often
than not, we see that the return on investment from
a percentage annually is pretty low. But every once in
a while we see one where we go, oh, you
got to take the monthly the monthly income. And we're
completely unbiased. We're fiduciaries. We're not going to try to
(05:36):
talk you into, you know, one way or the other,
but we want you to have.
Speaker 3 (05:41):
Just a mathematically makes sense exactly. And the other component
that we run into sometimes with clients or prospects that
are coming in to explore this is sometimes they don't
trust you know, their their pension or their corporation and
who's managing the fine point. You know, it has nothing
(06:02):
to do with their monthly benefit that they're going to
be receiving for in a retirement. Sometimes you say, yeah,
I just don't really trust them because they've made a
lot of changes in the past or reduce this or
whatever the kiss may be. But we we take we
take an analysis approach, you know, just using basic math
and figuring out can you take that lump sum if
(06:25):
you rolled it, rolled it over into an era, and
then generate similar or better income with having a myriad
of options.
Speaker 2 (06:35):
And the big piece is that if you can generate
a similar income on a on a relatively conservative basis,
then the other benefit is is you have that lump
sum to roll over and pass on to the next
generation or to your charities or whatever is important for you. You
have total converses. You know, if you take the income benefit,
(07:01):
then once you and your beneficiary, if you do choose
a modified benefit or gone, the lump sum's gone.
Speaker 3 (07:08):
Yeah. So that account that you've been saving or the
company now.
Speaker 2 (07:10):
For thirty years typically is what we see on average.
Speaker 3 (07:13):
Or if there's an emergency. You know, it's kind of
like Social Security too. You can't just go in and say, hey,
I want.
Speaker 2 (07:19):
After fifty grand.
Speaker 3 (07:20):
Yeah, something came up an emergency, I need fifty thousand
dollars and well, too bad. Yeah, But if you have
it and you roll it over in tenaira, you have
total control and autonomy to do that if need be. Yeah.
Speaker 2 (07:33):
So again, if you're one that's about to retire or
just retired and has it and have not chosen whether
you're going to take the annuity is really what it is,
which is just an income, a monthly income, or if
doing the lump sum is a more feasible choice, please
(07:55):
give us a call. We'll absolutely do that analysis for you,
will do it in a free retirement plan. Absolutely no obligation.
We just want you to be informed and do what's
ever best for you. Give us a call at nine
one six nine six seven thirty five hundred. Well, we
got off on a tangent there. We started to talk about,
(08:17):
you know, Iran and Israel, and the.
Speaker 3 (08:20):
Reason got off into pensions. I'm not sure how we did.
Speaker 2 (08:22):
I don't know either. That's that's what's so beautiful about
you know, this, this show is heck. We could talk
about anything, quite frankly, and a lot of it.
Speaker 3 (08:34):
But Iran, Iran, Israel. I think we're just going to
go on to other things that we're impacting the market.
That's where I was. We recently had the FMC meeting
and Jerome Powell, you know, had his speech s and
P five hundred has been or the stock market has
been a little volatile. Last Friday was a down day.
(08:55):
Then we've had some decent or relatively flat days from
there on out. But now we have some volatility because
of the geopolitical conflict. How do you now, how do
you best navigate that, you know, moving forward, and how
does that impact your over retirement plan? And those are
really kind of the two big things that stuck out
in this past week.
Speaker 2 (09:16):
So yeah, pretty much the stock market was pretty ho hum.
There was a little bit of movement, you know, up
and down h this week with with the bond market,
because interest rates at least got back down. The ten
year treasury got back down below four and a half.
It had spiked up to about four to seven. Now
it's down to four to three, and you know, and
(09:38):
that's when you see the bond market start to you know,
level out and get some sanity to it. But there's
still great rates out there despite the geopolitical things going on.
And really the battle because it is now a battle
between President Trump and Jerome Powell. Jerome Powell is clearly
making decisions not ba on what's good for the US
(10:02):
consumer and economy, but more based on his political you know,
allies or or adversaries and.
Speaker 3 (10:12):
Well, he's becoming more political and these days, these days
in a speech, bringing that into his rhetoric, right versus
before he would always steer clear of it.
Speaker 2 (10:23):
Yeah, And I think it's because he knows he's toast.
His his term is up in May, and he's not
going to be reappointed, uh to a new term by Trump.
So he's toast. And and the fact, the simple fact
of the matter is he is too late Powell, as
as Trump has now named him.
Speaker 3 (10:42):
They've proved, they've proven to you know, battling inflation. So
that's already one mark right that he was too late
him and yelling and admitted that they were wrong.
Speaker 2 (10:52):
So yeah, and you saw consumer retail sales slow a little.
Speaker 3 (10:58):
Bit, inflation when data has been coming down and becoming
softer than anticipated as well. So I don't know how now,
you know, in December he was able to cut rates
and then now all of a sudden, now that we
have some softer prints and inflation data and some weakening
and consumer spending, we have some layoffs that company, i mean,
(11:22):
Microsoft just announced that they're going to do.
Speaker 2 (11:24):
So the cuts were before the election. They were before
the election.
Speaker 3 (11:28):
Kind of my point.
Speaker 2 (11:29):
Yeah, And so then after the election, there's no there's
no data supporting cutting, but there has been data to
support cutting to be ahead of a downturn in the economy,
but won't happen. I think the economy is going to
go along fly fine, because that the signs out there.
And we'll talk about those when we come back. You know,
(11:51):
what really is the driver of our economy and whether
or not it goes into recession. And so you're listening
to the wise guys John Scambery and Deceptivescani and I
did want to rant a little bit because I don't
know if you've seen or paid attention to the news
the last couple of days, but what an absolute embarrassment
(12:13):
some of these Democrat politicians, uh and and leaders are.
Did you see the guy who he was basically a
nobody and he's running for something in New York and
and he tried literally to like escort criminal illegal aliens
(12:35):
and prevent ice from you know, taking custody of this
criminal illegal alien. So they arrested him and then he's
you know, he's all over the news in New York
because now, okay, he's he's running for something. That's good point,
you know, there's such phonies and such despicable free that
(13:00):
they're more for criminal foreigners. That's it, there is there.
There is no you know, narrative that that and no
data to support the narrative from these whack job democrats
that ICE is out there, you know, arresting criminal I
(13:22):
mean non criminal women and children. I mean, that's the narrative.
The narrative is that ICE is out there going into
these city legal legal, legal citizens with green cards or
work visas. It's not happening. They are getting rid of
the tens of thousands of disgusting criminal, you know, foreigners
(13:45):
that came into this country and continue to commit heinous crimes.
Speaker 3 (13:50):
Well, you know, I watched a video Arnold Schwarzenegger, which
you know I loved him when I was younger because
I was into fitness. I was a personal trainer.
Speaker 2 (13:59):
That was my You mean you were into Coln then
that wasn't a good impression.
Speaker 3 (14:03):
I was into Commando.
Speaker 2 (14:07):
I did like the Predator. Yeah, me and I got
one guy forgett. He was a wrestler and he's cut
and bleeding. Jesse, he goes, I ain't got time to bleed.
Speaker 3 (14:18):
That was me and my cousin Sala's favorite movie. He
still is. I mean, if it pops on TV, it's like,
all right, we're just gonna sity on a.
Speaker 2 (14:23):
Lot of Rambo from the eighties all that.
Speaker 3 (14:26):
Yeah, but he's you know, during COVID and all that stuff,
he's changed and and so I don't agree with some
of his rhetoric. But anyways, he was talking about immigration,
and I did agree with him on this, And I
forget what event he was apt. He was at a
podium and speaking and he was talking about immigration, and
actually he was on the view too, talking about this,
(14:46):
and he says he, you know, him, being an immigrant himself,
came to this country with nothing, and now he's achieved
you know, uh a great acting career, right, bodybuilding career, wealth,
uh yeah, really really real estate mogul and he says
all of that was only possible because America gave it
(15:09):
to me. And he says, you know, and he's of
the thought of he now needs to give back to America.
And you know, not only not only that, but follow
the rules right, be legal, you know, do do all
the necessary processes to come into this country, he says, so,
you know, for somebody to come in illegally or abuse
the system and and and play victim, right, doesn't play out.
Speaker 2 (15:36):
The other thing that just app you kind of have
to laugh at just the patheticness was you know so
and I think I've watched this on Hannity or Jesse
uh Waters, but they were showing clips of some of
the protests and this one woman was saying, who's gonna
clean your houses? Who's gonna, you know, mow your lawn
(16:00):
and progatory almost and it kind of is offensive. I
mean really in the minority, I would be taking offense.
Now Americans can't clean houses Americans and you know they
were all they almost make it a skin colored thing. Yeah,
it's just it's pathetic.
Speaker 3 (16:18):
And everybody's American. Like my my, my dad, My father
himself came from Sicily when he was in fourth grade.
All of his family came from Sicily, right, all legal
went through hold the whole process and created you know, lives,
great lives and owned businesses and so on and so forth,
and so everybody else. Everybody's American. I mean we identify
(16:39):
like you say, well what nationality are you Italian? But
reality is we're all American. Doesn't matter if you come
from Middle East, Asia, right, Europe, different countries, because we're
just a melting pot. But it's different when you cross
over illegally, you're trying to fly under the radar. Then
you're then on top of it, which number one is
breaking law. Then you're breaking other laws. Right, you're becoming
(17:03):
either burglar or murder or whatever the case may be.
Speaker 2 (17:07):
Well, and Trump, like you said, he he loves the
Iranian people, he loves the you know, Mexican people, and
on and on and on and and it's just the
extreme government, the extreme government, the extreme leaders.
Speaker 3 (17:22):
The same thing with the same thing with China.
Speaker 2 (17:23):
China, I mean the Chinese culture.
Speaker 3 (17:26):
Put an infinite term for himself.
Speaker 2 (17:28):
Exactly right, And it's that it's the And the funny
thing is is what I don't get is and you
see how this affects, well, like the Iran Israel thing,
how it affects oil prices. They've been price the price
per barrel of oil has just been.
Speaker 3 (17:45):
Crazy.
Speaker 2 (17:46):
And and at a point, you know that it initially
helps some of the oil stocks and some of these
and then and then it gets to a point where
then it hurts that the oil stocks or oil transportation
or refinement. So on and so.
Speaker 3 (18:01):
And one of the one of the threats, since you
brought that up, is you know, I was reading Iran
can just threaten. One of the problems that could arise
is that Iran could just threaten that they're going to
be going after ships in the Strait of Hormuz or
Humoi whatever. I don't know he pronounce it, you agree
with me, meaning that you can't pronounce it?
Speaker 2 (18:21):
Yeah, I'm good. I want I always want to say
vermouth like you're put in put in a martini.
Speaker 3 (18:28):
It's a cocktail. Yeah. But they could just you know,
put the thread out there, not even have a military
equipment out there to show that they have actual legitimate
threat towards ships, and the insurers of those cargo ships
right transporting oil will not ensure those ships, and therefore
those shipping companies are going to say we cannot take
(18:49):
that path. And that can really impact the price per beryl.
I mean, I've seen some estimates where it can go
up to even one hundred and fifty dollars per barrel,
depending on if that were to take place and it
was an extended period of time, which then that would
really trickle in not just oil and gasoline, but it
can trickle into other areas within the market and the
(19:13):
economy that can start bringing things down. I mean, I
m as suits supply management, which is a measurement that
another economic indicator. Really the line in the sand is fifty.
Anything above fifty is expansionary and anything below the number
fifty is contract contraction or risk of Hey, things are
really slowing down. We kind of got to watch out
(19:33):
and right now where we're at because we're at high
rates and fed share Powell Powell Feedshir Powell has kept.
Speaker 2 (19:40):
Rats too late, power to.
Speaker 3 (19:44):
Say, not as much of a tongue twister, right, has
continue to keep rates high. Then that and things are
continuing to slow down with some of these economic economic
indicators are suggesting. And then if this geopolitical tension, and
especially in the Milise continues to threaten, right, the cost
of energy.
Speaker 2 (20:04):
And you impact yeah, you impact energy or the cost
energy that that's going to that's going to you.
Speaker 3 (20:10):
Know, kind into profits well, and it's going to create
it's going to create that stagflationary threat again, right, which
is slower growth but higher interest rates and higher borrowing.
Speaker 2 (20:21):
And again and inflation too late. Powell will be at fault,
and he will go down as one of the worst
Fed Reserve chairman's that we've had a recent you know,
fifty years.
Speaker 3 (20:33):
Part partly in his defense, So it's not it's not
all him. It was astration. All the spending on the
fiscal side, which really contributed to a big portion.
Speaker 2 (20:43):
Of this, wasn't political, you know, talking to he chose,
not chose risks or working with the administration to say, hey,
you got to reign in the spending. If we're going
to reign in inflation.
Speaker 3 (20:55):
And and how this system is set up, you can't.
They should because that's what makes sense. But yeah, and
it's yeah, he didn't choose to be talking about how
politics or current politics and fiscal policy could be or
not impacting inflation. But now all of a sudden he
is with a whole terrort.
Speaker 2 (21:13):
So as we were sitting here talking, I pulled up
on a big screen here in front of us, straight
of horror moves. So do you say it horror moves
or home or moose? Not sure, but it's h m
u Z straight of horror move. I think it's horror moves.
Speaker 3 (21:30):
Yeah, that's probably not.
Speaker 2 (21:31):
That clearly, we've never been to that part of the world.
We'll have to use AI. But things are crucial to
when it comes to making money on your money and
doing that in the most conservative way that you can.
You can give us a call if you would like
a no obligation consultation, or to get a free retirement analysis,
(21:56):
or to ask us a question. We'd be happy to
spend some time with you. Give us a call at
nine one six nine six seven thirty five hundred. By
the way, if you're in the Bay area or in
the Reno, Nevada area, we also have offices that we
can meet with you in Walnut Creek or in Reno.
(22:17):
And that's how far our show actually reaches. Our our
latest client just came to us from the Bay area
who's a retired nurse. And and you know we're our
show's growing, so you know that's so sound waves on
the back or anything.
Speaker 3 (22:36):
So sound waves go further than we thought. Yeah, radio
radio waves.
Speaker 2 (22:41):
Yeah, Well, we love KSTE because it does. It goes
into the Bay area and almost over to uh Nevada
and and up and down you know, north and south
in California. So it really is a great partner. But
besides that, we were we were just diving into the
weeds a little bit. It on on the risks really is.
Speaker 3 (23:04):
What everything's talking about in the world, everything.
Speaker 2 (23:07):
Going on in the world, and the reason why we're
we've been talking about that so much this morning is
is that's what you know, risk mitigation is about. That's
one of the main reasons why you hire us is
we focus on risk first, income second, and growth third.
And when you put that all together with active money
(23:30):
management from highly experienced, credentialed portfolio managers like Giuseppe and I,
that's something you got to have these days, in my
humble opinion, And so right off the bat, you know,
we're suggesting, you know, various things, but if you're working
(23:52):
with somebody who is always taking a static approach no
matter what is going on, you absolutely should give us
a call at nine one six nine six seven thirty
five hundred to arrange a no obligation meeting near you.
Speaker 3 (24:09):
I'll make a point just to add on. You know,
this was brought up in our last you mean you
want to talk, I mean, if you'd rather not go
ahead please, but you know in our last meeting with
our newest client, you know, she she mentioned, you know,
one of the things that was I don't know if
it was a concern, but something that she had paid
(24:31):
attention to was, you know, she had all these things
in this portfolio, and then when she had some questions
the financial advisor, would you know, schedule a call and
they're like, oh, you know, we'll bring in, We'll bring
in the portfolio, bringing the portfolio manager or this third
party manager whoever to chime in so they can talk
more details about what's in the portfolio, maybe why, why
(24:53):
the changes or what what took place, or so on
and so forth, and and with us that that's not
what you're going to get. We're not to just gather
your assets and then take those assets and then.
Speaker 2 (25:05):
Farming mouth to somebody else.
Speaker 3 (25:06):
Yeah, farm out to some other investment firm that they'll
manage it. And then they're making the changes, you know,
and then you you have a call with us asking like, hey,
I looked at my last statement or quarterly statement. I
noticed this changes X and y and so on and
so forth. You know, what was the reasoning behind that
or why or whatever, And we really don't know because
we're not doing it. We're not we're not pulling the
(25:26):
levers or pushing the buttons, and that's not the case,
because that's exactly what we do do is we are
the ones who are putting the thought behind what's going
inside of the portfolio, you know, setting up the criterion
and the guidelines of what's going to be in the portfolio.
And if there is a change, there's a reason why
there was that change, and you can you know, speak
(25:47):
to you know, get it straight from the horse's mouth
per se of what's actually taking place in your portfolio. Well,
which is which is not common these days really in
this industry.
Speaker 2 (25:56):
Yeah, you're right, but if you think about it, even
benefit you didn't even touch upon is Listen, when you
bring in, if you're an advisor and you bring in
a third party to your client's relationship, that that third
party doesn't know squat about you our client, nor do
they care, and you're probably just one of thousands. And
(26:19):
so it always, you know, boggles the mind that you know,
people pay advisors and then they have them in third
party you know, products or third party management that have
absolutely no relationship with you, no care in the world
of how you're impacted by these things we're talking about,
(26:42):
especially if they're impacting your life and your investments in
your you know, livelihood where we that's probably the main
reason why we don't farm it out to others. And
also that's the best part of what we do. We
love actually being response for the portfolios that we design
(27:03):
based on your goals, your objectives and all those things
that matter to you, versus just you know, farming it
out to somebody else, and well you.
Speaker 3 (27:12):
Lose touch, right, there's there's a disconnect there, and then
you always have to you know, as a financial advisor,
it's more more instead of a financial advisor, it's more
of kind of like a relationship manager.
Speaker 2 (27:22):
Yeah right, yeah, but yeah, it's just well you're you're
a broker. You're still back to the days of where
you're just a broker. You sell this product, this advice,
that tool, whatever, and then you just move on.
Speaker 3 (27:34):
So if you have a whole shelf behind you of
all these different products, yeah, and somebody comes in and
then you say, oh okay, oh yeah, yeah, you get
this one and this one and that'll be you know,
three thousand dollars in commission.
Speaker 2 (27:47):
And while you're at it for the low low price
of you know, and we're going to throw in some
ginsu knives. I mean, that's what advisors, in my opinion,
especially at the big firms and especially the big custodians,
have become. They don't have and aren't trying to remain
and and and continue a close personal relationship with their clients.
(28:12):
Now that doesn't mean, you know, we're trying to uh
be that bad mouth them. Well we're not. Yeah, we're
not trying to bad mouth other other firms or other advisors,
but there are.
Speaker 3 (28:25):
We're not trying. Plenty of good advisors out there, So.
Speaker 2 (28:29):
We're not trying to get to a thousand clients or
ten thousand clients like some.
Speaker 3 (28:33):
Of the because then you have to farm it out.
Speaker 2 (28:35):
Then you do have to farm it out, and then
you no longer care whether a client is making money
losing money.
Speaker 3 (28:42):
You start and it's not a matter of caring, because
there's a lot of advisors that you know that that
do care. I mean, we work for big firms, so
we were in that situation themselves, not like we've always
been in this situation.
Speaker 2 (28:50):
No, I you when you get too big, you yeah,
you start losing touch. You lose touch, and therefore that's
the same as not carrying. In my opinion in because
you just care more about getting more clients and then
you know what's happening to an individual.
Speaker 3 (29:08):
And there's benefits you know, of of the big firms
out there, and I think for the customer or the
client out there, there's a sense of uh stability or
calmness to be with a big firm with a big
brand name, right because they say, oh, we can easily
the trusts, right, that wall that that which is huge
is already kind of broken down, right. It's it's they
(29:31):
can easily trust just because they have that brand name.
Speaker 2 (29:34):
Now that you're just you just nailed something big.
Speaker 3 (29:37):
Yeah, you know, I'm ready for it. Are you ready?
Speaker 2 (29:39):
Well, so we are a big firm and we're affiliated
with the biggest firms in and that's where I was
not only in the industry in the country I did.
I spoiled it for you. Go ahead.
Speaker 3 (29:52):
Yeah, And it's it's it's having the the the wealth
of resources and tools and support. And that's part of
the reason why John and I decide, you know, we've
talked about it in a few past episodes, to partner
with farther because they are a bigger firm, they have
you know, one hundred and fifty support staff that we
(30:13):
can lean on to help with all the operational administrative
to run more efficiently, and we can provide a better
client experience and spend more time with our clients because
we recognize that right where where we start to get
to capacity and then we say, okay, we either need
to start hiring more people or in this case, we
decided we're partnering with another firm which is not has
(30:35):
nine billion assets center management, but then more importantly has
way more tools. So now we just added a whole
bunch of more tools to our toolbox, capability, more technology,
and additional support staff. Yeah, if you're not, if you're
not expanding your your technology suite of things that as
(30:58):
a money manager, as an advisor, whatever you want to
call yourself, I mean, you're you're you're falling by the
wayside these these days. But the but the.
Speaker 2 (31:09):
Real part that I like is that because we're affiliates
of both Schwab and Fidelity, and and we keep talking
about this new client from this this week is she
was Fidelity and she worked for a corporation that had
a pension and you know she wrote she before us
(31:29):
rolled that pension to an IRA and then we don't
even have to do new paperwork. So if you're already
a fidelity or a Schwab client, or a Goldman Sachs
client or inactive brokers, yeah, uh, you don't even need
to open up a new account to to hire us
(31:52):
to help you with you know, today's crucial, you know,
active management of your portfolio. I mean it's crucial. And
so speaking of active management of your portfolio, if you're
managing things yourselves and or you know you you you
do have what we would say is a static advisor.
(32:14):
You know, in our opinion, you do want to be trimming. Uh,
you know your over exposure to stocks and it's still
a good time to you know, add fixed income to
your portfolio. And you can give us a call it
nine one six nine sixty seven thirty five hundred if
you have any questions or want to come in for
(32:35):
a no obligation consultation. Again, that number is nine one
six ninety six seven thirty five hundred to arrange a
no obligation consultation at an office near you. But this
is my favorite part of the show where we dive
in a little bit more into the deep end of
specific type strategy of investment strategies that could really help
(32:59):
people and or give you an example of the things
that we do to help people with their money. So
I mentioned fixed income, and then I mentioned another investment
that we would talk about. But let's talk about both
first and foremost this fund that we like, this private
(33:23):
credit fund. Walk us through how that thing's been performing
since twenty twenty two. And keep in mind that any
specific investment, kind of area, sector type that we talk
about is always only just a small piece of our
(33:44):
client's overall portfolios. And never do we put more than
five percent or around five percent, depending on the risk
level of a particular position in somebody's account. And then
if it gets way out of whack where it grows
to being a significant portion, ten, fifteen, twenty percent, will rebalance.
(34:05):
And that's really what active management is. It's not day trading.
It's it's constantly making sure that the areas, the types,
the allocation of investments are you know, meeting our client's
objectives and are timely you know, for a current year,
(34:28):
a current you know, one, two, three, five year time
horizon versus going, oh, this is good for the next
five ten years. You don't need to do anything. That's
not the case when you're retired or close to retirement,
because you don't have five years, ten years or more.
Typically two make up a big mistake, a big risk
(34:52):
that you shouldn't have taken. And that's where this fund
comes in. That you'll have to give us a call
or come in and see us to know which one
it is. But we're going to talk about it just
generally and how it fits into most of our clients' portfolios.
Speaker 3 (35:12):
Right, Yeah, and I think this really fits well into
some portfolios, and especially given you know, looking at more
recent times twenty twenty two, because twenty twenty two, you know,
we've talked about it before, that was a year that
it was it seemed like there was no nowhere to
run to hide, now right, I mean if or and
certainly not stock, right, if you had a traditional portfolio
(35:34):
of stocks and bonds, I mean both of them went
down by double digits. Bonds by over ten percent, depending
on the industry that you're tracking, could be anywhere from
down twenty to down thirty four to thirty five percent,
So was pretty devastating on both ends. So you know,
some of the alternative side of things of investments. This
fund here, which is focused more on the private private
(35:56):
credit sector of alternative funds, were fun but it was
incepted in May of twenty twenty two. But if you
track from May to twenty twenty two through end of
May of this year, the average annual return of it
has been about eight point six percent average only return,
which is a great rate of return if you look
(36:18):
at the.
Speaker 2 (36:18):
SMP five hundred are retired and needing to be more conservative, right,
And just.
Speaker 3 (36:24):
In comparison, the Bloomberg US Aggregate Bond Index, which is
just the index for bonds out there, during that same
period of time, the average under to return was one
point seven percent roughly. So you have eight point almost
six percent and about one point seven percent bonds, which
(36:44):
bonds are supposed to be conservative. And then when you
use a measurement of risk or volatility, which we've talked
about before, standard deviation. The higher the standard deviation number,
the more wild that roller coaster ride is going to
be on the ups and downs, more volatile. The fund
that is focused on private credit, and this particular one,
(37:06):
because not all are equal, has a standard deviation under two.
It's one point ninety four percent during that period of
time from twenty twenty mid twenty twenty two to through
the end of May of this year. Bonds at the
same time period almost six point seven percent standard deviation,
(37:26):
so more than three times the volatility of this fund,
but you're getting what six times almost the return the
average ender return just to just to put it in context,
S and P five hundred during that same period of time,
right fourteen a little over fourteen percent average ender return,
(37:47):
but the standard deviation is over eighteen percent.
Speaker 2 (37:52):
So that's where most people make a mistake, right they panic.
So you know, did you lock in and stay in
your SNP index fund or or your stock that's part
of the five hundred that are in the S and
P five hundred when you saw it go down thirty
percent in twenty twenty two, go up in twenty three
(38:14):
and twenty four, but then go down you know, twenty
percent potentially in twenty twenty five. And that's why you
need folks that don't get emotionally tied. They focus on
your goal and your objective and so and what those
minimum returns to objectives are. So you know, again, if
(38:36):
you need an eight percent return, you're not going to
get that in in you know a CD or a
treasury or a savings account or a money market and
you certainly if you need that, don't need to go
to you know, stocks and stock funds if you don't
need that risk. So this is a great example of
(38:58):
how to get an eight percent return without necessarily having
the roller coaster ride of the stocks or.
Speaker 3 (39:06):
Of bonds too. Yeah, right right, And that's a big
piece is how do you you know, what components can
you put within your portfolio to divers diversify it, right,
because diversifications used all the time that term, but how.
Speaker 2 (39:20):
Can you put all your eggs in one basket? And
we always find that people have all their eggs in
one basket, even when they don't think they do.
Speaker 3 (39:26):
But even when they have acid classes. Like traditionally speaking
over the long term, and it did work out in
two thousand and eight, stocks and bonds when stocks went
down tour in two thousand and eights, you know, the
bonds in your portfolio helped buffer that blow. But in
twenty twenty two that wasn't the case. The correlation was
both down, both were down. Yeah, So having the wherewithal
not only that, but then also having the choice, right
(39:48):
because there could be some platform that you're or brokerage
that you're part of that doesn't offer these types of
funds or types of investments within it, and it's more
of the traditional types that that you're subjected to.
Speaker 2 (40:01):
Well, not only that, but many firms block their advisors
from doing all different types of alternative investments or strategies.
They don't deem them as qualified. And that's where our
almost combined fifty years of experience and helping people of
all walks of life through good markets and bad, good
(40:25):
economies and bad you know, so on and so forth.
You can't replace and so but but go on.
Speaker 3 (40:33):
The other that we've talked plenty of times, which is
great for these kind of uncertain times. Depending on if
his Middle East tensions continue to escalate, price per barrel
like we talked about, continues to increase.
Speaker 2 (40:49):
The treasury yeah, and then you.
Speaker 3 (40:50):
Know has an impact in the markets and the economy.
You know, what do you do? How do you how
do you keep your portfolio continuing to working and generate
the cash flow and the returns that you need at
the same time. Shaving risk one of the other areas
that we like, and we're taking advantage of especially when
volatility is picking up, is structured investments, and we have
(41:14):
one that's coming up that we'll be putting in some
client portfolios that makes sense for coming up next week,
and that's going to be providing a potential return of
eleven and a quarter percent per year, but also provides
a thirty percent downside barrier, meaning that you know, as
long as it takes a look at it every month,
as long as the three indices that attracts does not
go down by thirty percent or more on that given
(41:37):
observation date, it gets paid out one twelfth of that
eleven and a quarter percent, which is going to be
just under one percent a month. And it does that
for two years, which is nice. The only risk is
if the issuer and these issuers are huge main investment
banks that are a credit quality or higher, goes up, defaults,
(41:58):
or you know, you hold it and then at the
end of the term, you know, at two years, let's say,
for example, specifically on maturity date, one of the indices
that it's tracking the worst performer is down more than
thirty percent, then you'll participate on a one for one,
but you often but you're also still collecting all of
that return that you've collected in the previous two years
(42:18):
that you have to add back in.
Speaker 2 (42:20):
For more information or for a no obligation consultation, give
us a call at nine one six nine six seven
thirty five hundred, or you can go onto our website
as at Wysemoneyguys dot com and click on the contact us.
Fill out the information and Kathy will give you a
(42:41):
call to schedule and appointment at an office near you.
So I hope you enjoyed listening to the Wise Money
Guys this fine Saturday morning.
Speaker 3 (42:50):
You can also visit us if you want to see
us live is on YouTube and you could just search
the Wise Money Guys in YouTube and you'll be able
to see all of our past fait videos and this
one as well.
Speaker 2 (43:01):
Have a wonderful weekend.
Speaker 3 (43:03):
Talk to you next week by all M.
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