April 17, 2025 • 42 mins
The U.S. financial markets are wobbling right now with influences we've never seen before. It's a turn of the World Trade balance. Hosts John and Giuseppe help us calm the tilt with an explaination of the Tariffs and China, AI spending, and a translation of Fed Chair Powell. Plus, new news on our institutional future, and support for Dividends & Asset Allocation. 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):
Welcome to the Wisemoney Guys Radio Show. I'm your co host,
John Scambray and I'm here with my partner just up you, Viscontin,
and we are certified portfolio managers that specialize in helping
people who are retired are about to retire manage their money.
If you'll like our show and have any questions or
want to get a hold of us for a new
obligation consultation, or register for our upcoming seminar on April
(00:37):
thirtieth from six to seven thirty pm at the Old
Spaghetti Factory in Roseville called nine to one six ninety
six seven thirty five hundred. You can also visit our
website at Wysemoneyguys dot com and from there you can
click on register for the seminar on August thirtieth, or
(00:58):
you can fill out out a chat a questionnaire A
chat yet what it is exactly, but there's a form
on there for a no obligation consultation as well, in
which Kathy will then call you to put you on
our calendar again called nine six, seven thirty five hundred
for anything else that we haven't addressed. So what are
(01:21):
we talking about today, does Eppie?
Speaker 3 (01:23):
Well, we get the markets we had. Jerome Pell made
some comments. Also, FED President Williams of New York made
some comments in regards to He was asked questions as
far as potential rate cuts and where the Federal Reserve stands.
We've talked a lot about the Federal Reserve. It is
important a lot of other countries look out for that.
Speaker 2 (01:43):
Tariffs have escalated, as it used to be inflation, inflation, inflation.
Now the news is tariffs.
Speaker 3 (01:49):
Tariffs, tariffs still inflation. Well, but now this spins on
tariffs causing inflation, and I'm sure you'll have some insight
on that.
Speaker 2 (01:57):
Yeah.
Speaker 3 (01:58):
Outside of that, know where the markets are at, you know,
this past week and the escalation of terrasts between US
and China, while we get through this ninety day delay
with the rest of the countries, and outside that mark
you know, economic indicators, nothing nothing really big out there
(02:20):
for this past week. We do have earning so we
started earning season, which is big started off.
Speaker 2 (02:25):
With banking financially crushing it.
Speaker 3 (02:28):
Yep, some financial So that's also going to be something
to track and important to watch as we continue on
with the earning season, and more so the forward guidance, right,
and what companies You.
Speaker 2 (02:41):
Notice some companies have now said they're because they don't know,
you know, what the impact of policies, they're saying they're
not going to forward get forward guidance, which has always
been my position, Why the heck is, how do you
do it? Yeah? Well, yeah, a year from now, two
years from now, we think we're gonna that's worthless because
(03:03):
nobody knows what's going to happen literally tomorrow, let it alone.
What's going to happen a year from now or two
years from the order from now?
Speaker 3 (03:10):
I think part of it is you know, charting, charting
goals and what what their what their sentiment is of
how they want to grow moving forward, right, and that's
what people want to hear, and what what do you
think is going to help support that, you know, thesis?
And what do you think is gonna you know, take
away from it? I think, And then outside of that,
obviously the big thing this this past week really as
(03:33):
far as news was in Vidia and the you know
blocking of Cell of chips to China, and that really
impacted in Video's price, which then also trickled into a
lot of other tech sector uh stocks and companies and
drag the market down.
Speaker 2 (03:47):
But I think it really just caused Nvidia and chip
stocks to just be fairly priced actually because quite frankly,
you know, as we as we've discussed, you could just mention, oh,
we're gonna, you know, spend money on R and D
on artificial intelligence, and the stock went through the roof
and it had nothing to do with the fundamentals of
(04:10):
the company's financials.
Speaker 3 (04:12):
Could be dollars, could be Dollar General saying that they're
gonna do AI investment and then Dollar General goes out.
Speaker 2 (04:17):
So I mean, I think in videos, like I said,
fairly priced at around one hundred dollars. Did we see
it go lower? Yep, it dipped into the high seventies eighties,
and and certainly its hie was in the you know,
the high one forties. But still I think, you know,
in the one forties it was overpriced, and I think
(04:37):
at you know eighty it was under price.
Speaker 3 (04:39):
So well, and I think the I think the the
main catalysts to that, and the AI not so much.
The recent news of the blockage of chips obviously has
a direct impact because if that continues to stay, that
impacts some you know, impacts of video by five point
five billion dollars, you know, with those H two h
(05:00):
I'm saying that right, sounds funny.
Speaker 2 (05:02):
But I.
Speaker 3 (05:05):
Think it's the H two oh chips, right. But I
think it's the deep seek right that came out, and
and the AI that was generated for less of a cost,
And I think that that spun the whole AI realm.
Well is do you need to actually spend all those
billions and billions of dollars to where you need to
(05:27):
get to go?
Speaker 2 (05:28):
Well, you know there was a lot of speculation after that.
That's so much of that was false. You can't you
can't trust us. It was millions and and quite frankly,
I think the the administration and its effort to rein
in the absolute theft of intellectual property, the absolute terrible
(05:56):
imbalance between what China does with the money that we
invest in their country versus the money they invest in
our country. I mean, it all goes to their military machine.
It doesn't go into anything that's good for humankind, and
so I think this is warranted. I'm in fact, I'm
(06:18):
happy that we're not making a deal with China at
least currently, although Trump said today that, oh, no, we'll
make a deal with China, and no, I think, you know.
Speaker 3 (06:29):
Well, I think a deal will have to be struck
at some point because the continuing raising of tariffs, because
they raised what China raised to like two hundred and
forty five percent and we're at four hundred and twenty.
That continues to go up. You know that there's there's
going to be an end point at that at some.
Speaker 2 (06:44):
Point, but not really realize that. You know, for more
than one hundred years, goods and services had zero reliance
on China, and so the only issue is is that
how quickly can we get rid of the reliance on China. So,
(07:05):
you know, the pain point is what everybody is the
asset managers, money managers like ourselves are struggling with, is
the short term pain to get to an outcome that
puts us more on a more reliable footing when it
comes to our essential goods and services and raw materials
(07:27):
and energy, so on and so forth. So from a
super point, yeah, I mean, really, do you want your medicine,
you know, coming from China when we know.
Speaker 3 (07:37):
And it doesn't matter China, Russia, Cuba. You know, it
doesn't make it doesn't make sense exactly. It doesn't make
sense to have essential needs and services that we're going
to be reliant upon a country that's a non allied country.
Speaker 2 (07:55):
This doesn't make sense, no, exactly. So, like I said,
it's short term pain. But I do think this is
a buying opportunity. I mean, again, we were talking about
it Vidia and Vidia. If it's something that you feel
like you wanted to own, this is a much better
price to own it than when it was you know.
Speaker 3 (08:13):
Or Palunteer or any of those names that you know,
got the headlines and you saw triple digit returns, you're like, oh, mesh,
should I get into it? Should I get into it?
Speaker 2 (08:22):
Yeah?
Speaker 3 (08:22):
Exactly, You're exactly right. This is a time where you start,
you can start looking at it. But a lot of
times people will do the opposite because now they're worried
about like, oh my gosh, this is going to be session.
Is it going to go is the stock market going
to go even lower? And it could. I mean there's
still an uncertainty, and these things have to get figured out.
Like you said, it's not an overnight deal, right, These
things don't get figured out overnight. And I think a
lot of it has to be initiated. It's kind of
(08:44):
being forced upon, you know, corporations, but they have to
take the stance and say, all right, we're done with it.
Let's go find either find out like in Video is
starting to build chips here, and if they need to
have some cheap labor and costs, go find some other country.
But that's going to be an ally with us exact
that they can have some cheap labor and land to
(09:05):
do it. But you're not going to have an adversarial
country where when tensions rise. Now you're in a situation
like you're in now, every blocking blocking each other.
Speaker 2 (09:14):
Everybody keeps just uh, tiptoeing around. And I wasn't sure
if you could say the other phrase, which is cat around,
But what you call a cat around? Okay, well it
has to do with cat foot.
Speaker 3 (09:32):
I'd rather look at a math problem trying for you
this out.
Speaker 2 (09:34):
Well, again, I don't know if you could say the words,
so that's why I'm not saying it. But tiptoeing around
the fact that China is not our friend. They are foe,
and no, no one should be doing business or helping
a foe get even stronger and helping them with their
their efforts to dominate the world.
Speaker 3 (09:57):
As we did. I know, we out of out of green. Yeah,
exact it got it got them to the number two
you know economy in the world. And now they're backpedaling.
But the thing is that backpedaling is not coming from
my point, is not initiated by the corporation saying all right,
we need we need to restrategize here, just kind of
going with a flow, right, But now with the current
(10:19):
administration and Trump Trump and the tariffs, it's forcing the issue, right,
and they're saying, okay, we need to Maybe we thought
about this before, but now we've got to go to
the drawing board. We gotta, we gotta, we gotta figure
something out.
Speaker 2 (10:29):
Yeah, So we'll be talking about these these major geopolitical
issues and financial issues, but more importantly, we'll be discussing,
you know, your typical tactics that people like ourselves are using.
Should you get in, if you should get into some
of these things like Nvidia, or should you still get out.
(10:51):
And so I'm your co host, John Scambery and I'm
here with my partner Jaepa Viscountin. So we were talking about,
you know, some of the the nuances of the trade
war with China, and then I mentioned, you know, should
you be buying here? And again, first of all, it
(11:12):
depends on what your goals and objectives are and what
your tolerance for risk is what it really boils down to,
because at the end of the day, if you look
at most clients, at least most clients that we work
with or meet, you know, most are happy with a
high single digit you know, long term return. Well you're
(11:33):
not going for a double digit or a home run
like oh you know.
Speaker 3 (11:37):
You know some some have gotten away with it. I
mean not gone away, they got ahead of themselves because
I think most people all they need is a high
single digit annualized return exactly. But because of all the
euphoria that's taking place with you know, the markets and
how they performed in twenty three, twenty four and some
of these high flyers and AI stocks and what have you,
(11:58):
they chased it. So there's so they got away from
the idea of all I need is my portfolio to
do high single digit return to get to where I
need to go. But you know what, I need that
double digit return because I'm watching the news and I'm
watching Jim Kramer and he's talking about you know whatever.
Speaker 2 (12:15):
He is the one of the worst you know, uh
people when it comes to how his recommendations have performed.
Speaker 3 (12:21):
No, he's great. You just do the inverse. You do that,
you have great, Great, there's actually an inverse etf.
Speaker 2 (12:29):
Of Kramer recommended. Whatever he talks about, they do.
Speaker 3 (12:31):
The inverses actually has pretty I haven't looked at it recently,
but I think I looked at it last year or
the year before and actually had a pretty good track record.
Speaker 2 (12:38):
So the reality is for us to say, yes, you
should buy this investment or that investment right here. What
you what you were starting to get to is that
it's really about knowing and I think I coined this
right frankly, but really knowing what your minimum return to
objective is. And that's a planning conversation where you know,
(13:02):
we find out, okay, well what type of return do
you need to make to accomplish whatever your goals are,
And those goals might be I need income off of
my investments, or I want to create a legacy, I
want to increase my wealth, I wanted it to go
on to the next generation charities, whatever the case may be.
And here's my comfort for risk. And then that determines
(13:27):
what sort of rate of return you need on your money,
and then that answers the question of what sort of
investments should I be rebalancing to and buying right now?
I mean, that is the crucial component here.
Speaker 3 (13:42):
So otherwise, if you're looking at, for example, and Vida
just because we've talked about it and saying, oh, I
want to buy it because I think it's going to
go back to one hundred and fifty, is that what
you need in your portfolio?
Speaker 2 (13:53):
Right?
Speaker 3 (13:54):
But it's looking at the big it's taking the big
picture and looking at what's need and then diving down
into the details. So it's it's essentially you're in a
plane and you're at the thirty five thousand, uh you know,
foot level as far as elevation, and then you start
coming down and you're looking at all the details of trees,
houses and so on and so forth, instead of the reverse.
(14:16):
A lot of people will look at it and say, oh,
I'm gonna buy an video. I'm gonna buy a pouncer
because last year was up you know, to X amount
and whatever, and maybe this is my opportunity and I
can I can get get it. You know, a nice
twenty five fifty hundred percent return. I missed out and
it last time. I want to get into it. Now
it's like two thousand and eight, right, pre two thousand
and eight crisis, people who weren't real estate investment. You know,
(14:40):
people had portfolios. Yeah, they didn't have rental properties. Two
thousand and eight hit. They waited because everything was scary.
But then now you have people when things started getting better,
right like twenty eighteen, twenty nineteen, so on and so forth,
and people are coming out of the woodworks. Oh I
want to and we've seen it from clients too. I
want to buy a rental property. Have you ever owned
into property?
Speaker 2 (15:00):
No?
Speaker 3 (15:01):
Why do you want to buy it? Oh? Because you
know it's it's yeah, it's a good return, this and that,
so and so forth. When you break prices down exactly,
it's like I missed the boat doing it back in
the two thousands and so now I want to jump
on the bandwagon. I think here's my time. Now. Now,
there's nothing wrong with looking for opportunities when they get
beaten up, but you don't want to get so laser
focused on I need to. I need to, you know,
(15:23):
I missed out on that one hundred percent return, and
I want to get into it because then you have
these times like this and this will come again. It's
not like the market's down now. Present some opportunities, you
get into it, maybe you make some good money. Doesn't
mean that it just goes up from there, because then
another event will happen, and then it goes down and
you're in this pain point.
Speaker 2 (15:43):
It's a good comparison because so many of our clients
do have investment real estate, and quite frankly, what's what's
I don't know if it's alarming or shocking to them,
but a lot of the times it is. And I'm
thinking of this one particular client where she's eighty seven
years old and she has six rental properties, and based
(16:05):
on what she paid for those and based on the
net cash flow, that's a lot of times what people
don't truly know is what is your true net on
your investment real estate? Are you factoring in the property taxes?
Are you factoring in the homeowners of the shire. Are
you factoring in you know, yard maintenance, if you include that,
(16:28):
a lot of people, you know, include their water and garbage,
are you factoring that in? And then as you said,
are you factoring the maintenance in? And I actually showed
her that she was getting less than a four percent
net return, and she was absolutely shocked because she was
just considering the top line of the income, just the
(16:50):
gross factory and not factoring in the overhead of and
then not factoring in what a hassle just to be
you don't have a renter or you have a bad renter,
and quite frankly, to get a four or five percent
you know that cap rate on investment real estate is
(17:12):
substandard on what you could get in just like the
JP Morgan bond that we were showing another client five
point six percent. She walked into the bank and they
said we can give you a three point four or
five percent rate, and she thought, oh, that was decent,
and this is JP Morgan. And then we showed her
that the A rated JP Morgan bond pays five point
(17:34):
six and she was like, well, why would I want
the three point four to five And we went well,
I don't know because it's the same.
Speaker 3 (17:43):
But well, the thing is is you don't know what
you don't know, right, And a lot of people out there,
and she didn't know all of her options, nor was
she presented all the options out there, and that's why
she didn't know. And so, you know, there's a ton
of different investments out there. In real estate is a
hot one right now because we do have clients and
there's people out there that have had real estate for
a long time. They now might be in their eighties.
(18:04):
They manage it themselves, and now they're at a point
in time saying like I'm done with this, you know,
and it's appreciated and I could sell it, and maybe
my net return isn't as good as it used to be,
or whatever the case may be, because maybe expenses your
homeer's insurance went up. Maybe I could cancel it and
you're on the California Unfair Plan and your net cost
is your net cost has actually gone up. Some of
(18:28):
the opportunities out there. As far as investments that we
help our clients is actually ten thirty one exchanges into
DST Delaware Statutory Trust, which you actually have direct investment
into real estate portfolios, right, and you have to look
to see what's available out there. But then these are.
Speaker 2 (18:47):
What we do for you. We look to see what's available.
Speaker 3 (18:49):
Right, and then that way you're still in real estate.
But the difference is is you're not managing it and
you're still and you're getting a decent return right, and
you're getting the cash flow you get.
Speaker 2 (19:00):
The best part is you're forgetting the best part of
why you would why you ten thirty one into tax tax?
Speaker 3 (19:10):
Do you continue to tax defer so you don't so
you don't have to gain you're not paying the capital gains.
And a lot of times, you know, somebody sells a
property and then they have a short window period of
time if they want to go look for another property
themselves to do an exchange.
Speaker 2 (19:24):
Yeah. Quite frankly, many people make the mistake where they
learn about these things after selling the property and then
they have already taken constructive receipt of the proceeds from
the property they've sold, and then you're you've just done it.
That's it. You've just you can't even if it's in
the timeframe, once that goes into your name and to
your account, you cannot turn around and go oh, I
(19:47):
want to do the ten thirty one exchange.
Speaker 3 (19:48):
So yeah, clock's ticking now. The other thing too, of
these DST opportunities is it's not just going into another
residential house. There's multifamily, there's storage units, there's medical, medical
and health centers out there. There's distribution centers like Amazon.
So there's all kinds of different portfolios out there. Some
(20:11):
that are existing that have availability to get into, some
that are newly developed. But those are things that we
look out for clients who have some real estate out
there and like, hey, I'm going to unload some of this.
What do I do with the money? But I don't
want to pay taxes on the capcains.
Speaker 2 (20:24):
Yeah. I mean, at the end of the day, you know,
it's really having a diversified, truly diversified. We always need
to clarify that because most people think they're diversified when
they have a mutual fund or different brand mutual funds
that they're holding in different brokerage accounts at different firms.
That's not diversification. Diversification is being in asset classes that
(20:48):
have a low correlation to each other and hopefully a
low standard deviation. Certainly during really volatile market times like
right now, and in fact, you know, we'll talk a
little bit more about our asset allocation because I think
people will be shocked the types of returns we're getting
people without, you know, taking the risk that we see
(21:10):
that most people are.
Speaker 3 (21:11):
Shaking, shedding any unnecessary risk off that we can, so
you're not riding this big roller coaster ride.
Speaker 2 (21:17):
So we're going to talk about dividends and interest. I'm
your co host, John Scambery, and I'm here with my partner,
and in case you've tuned in for the first time,
we are certified portfolio managers. Basically, what that means is
we have taken the extra time to complete a very
advanced credential through a very difficult program to be specialists
(21:41):
in portfolio construction, investment, you know, analysis, investment selection, planning,
so on and so forth. So not only that, but
I often like to mention because it's pretty impressive that
Giuseppe also holds a master's in echo and finance and
(22:01):
is also a chartered retirement planning counselor. So you know,
not only are we battle tested, we've been doing this
a very long time, me for over thirty years and
Giuseppe under twenty but getting towards twenty, so fifty years
almost combined. And that makes us, you know, when you
put the two together, highly experienced and then highly educated
(22:27):
in the field is the type of people you want
working for you when it comes to managing something as
important as your investments.
Speaker 3 (22:36):
So the other thing is we use some big name
custodians where we house all of our clients.
Speaker 2 (22:45):
We us some excited news on that front.
Speaker 3 (22:47):
That too, and so we have our main is Schwab
that we use on the institutional.
Speaker 2 (22:52):
Charles Schwab Schwab Charles Chuck Chuck.
Speaker 3 (22:56):
Up and Interactive Brokers, and we just inked the deal
will be pretty soon having access to a few other
major platforms out there, probably in the next couple months,
I mean Fidelity, Goldman, Sachs and Pershing and all that's
going to really allow us to do is it puts
us in a you know, in the position that we're
(23:18):
in right now, is an RIA registered investment advisory firm.
Allows us to be unchained and not handcuffed to certain
platform or certain investments in a narrow menu of options
out there. We have a plethora of options out there,
and now all we're doing is we're just adding even more.
Speaker 2 (23:36):
Yeah, and quite frankly, that is such a difference. You know,
most independence they don't have multiple custodians, they don't have
the access breath, experience, you know, education, background, you know, results,
the value prop everything that we bring to the table
(23:57):
is getting harder and harder to find, especially as the
population of good I use the word good loosely investment
advisors dwindles because the average age is, you know, in
the sixties, certainly the late fifties, sixties, and many of
the talented people are retiring or have retired. And then
(24:20):
you've got you know, dare I say it, the rising
stars like ourselves, even though that might be more use
since you're still in your forties and I'm in my fifties.
But nevertheless, experience is crucial being a student of this game,
the time and effort that Giuseppe and I put in
(24:42):
to having the knowledge and the skills to help you
through whatever your situation is, and more importantly, whatever the
situation is, that the country, the world, our economy you know,
is being thrown at us. And that's why, which is
quite a bit we highly recommend you do not go
(25:02):
it alone. If you're in your fifties, sixties, seventies, eighties
and you've been just managing things yourself and now you've
watched them go toppy turvy and you're having trouble, you know,
with decisions on you know, how to change your portfolio,
what you should be in, what you should be out of,
what you should add to, and how it'll affect your
(25:25):
your wealth long term. You know, we're the right people
to call. Call us at nine one six ninety six
seven thirty five hundred and if you're not ready to
come in for a new obligation consultation, then register for
our seminar and do it quickly. It's only two weeks.
It was two weeks from yesterday flying and last time
(25:46):
we had over one hundred registrants and we had to
cut it down and say no, we can't take any
more registrations. So that's on April thirtieth, from six to
seven thirty pm at the old spaghetti factory in Roseville
called nine one six nine six seven thirty five hundred.
And at that, you know, a seminar, we literally show
(26:11):
people how to reduce their risk and how we do that.
We show people how to increase their income from the
investments that they could potentially have, and how specifically we
exactly do that with examples of what we're currently doing.
And most importantly, we show and prepare our clients and
(26:34):
then show our guests at the workshop how we help
people have the confidence of never running out of money.
So this is so timely right now. And you know what,
there's not many people, it's certainly not in northern California
and Nevada that do these things in Perfson, at least
(26:57):
on our side of the business. Now, there's the typical
annuity guys where everything fits an annuity, and I know
some of them are out there doing some dim dinner seminars,
But what they're going to try to do is sucker
you into an annuity that they get paid you know, five, six, seven, eight,
as high as ten percent commission up front and then
(27:19):
never talk to you again unless you have you know,
another five hundred thousand or million to buy another annuity.
And so and.
Speaker 3 (27:27):
That's that's important. That goes back to my point, which
was or statement of having a lot of choice and
options because off whoever you're dealing with, whether you know,
if you decide that you know, you want to have
a consultation with us, great, But if you have existing
advisor you're looking or talking with somebody else, you got
to make sure that they have a plethora of options
(27:49):
out there. Number one, So that there's a lot of
choice so they can really custom tailor, uh, you know,
fit a portfolio that's going to be fitting to your knee,
your timeline or risk tolerance, your financial goals, so on
and so forth. Number one and number two, that they
have that discussion with you and letting you know what
all the options are out there, different asset classes, different
(28:12):
types of investments, what they do, how they react to
different market environments. Because if they don't, then it's like
somebody coming to me and saying, hey, I'm interested in
buying a car, and I take them directly to a
Ford dealership. Yeah, well guess what they're going to be
end up buying, right, Versus I say, okay, well let's
go to you know, bottom All or CarMax and there's
(28:35):
you know, ten different manufacturers out there that you can
pick and choose from.
Speaker 2 (28:39):
So you're not saying we're used car salesman, are you?
Speaker 3 (28:42):
I'm definitely not you.
Speaker 2 (28:45):
I do believe in buying a certified pre honed car
though over a brand new car. Let somebody else drive
it off the lot and eat all the depreciation and
then buy it with a you know, an extended wall there.
Speaker 3 (28:57):
Sometimes there are some good brand new deals out there,
either with incentives to or low interestrate, you know, a
massive reduction on MSRP or the interest rate. Sometimes that
have zero percent financing, and sometimes that could be worth it.
Speaker 2 (29:10):
Yeah, at the end of the day, what it boils
down to is that fiduciary standard. Are you working with
or is the person a fiduciary? And basically what Giuseppe
was describing is we are fiduciaries. And not only are
we fiduciaries, we're even now custodian and firm agnostic on
(29:31):
where you know, we howse you house your investments. So
if you already have a Goldman brokerage account, or a
Fidelity brokerage account, or a Schwab brokerage account, so on
and so forth, we're agnostic to that. We simply become
your investment advisor and we do that in a fiduciary
(29:52):
relationship under an investment advisory agreement, and we charge an
annual fee that we break down into four corely payments.
And what's amazing to me and I often, you know,
shake my head and go, why are we doing this
right now? Under our current process, there isn't a full
fee until October, a full quarterly fee until October. There's
(30:17):
a partial fee that we would be charging in July,
but still for seven plus month months of work, you're
gonna pay less than half of our annual fee to
try us and get started and see if we're what
we say we are. And the great news is, we
never put people in anything that you can't get out of.
(30:40):
We don't ever put people in something where we make
some huge commission up front, and we never put people
in a situation where they can't cancel. If you're not
happy with the value and the service and the skills
and the knowledge we bring to helping you with your money,
you can delink us at any time. And you got
(31:00):
to be pretty confident in your abilities when you operate
under that sort of those what.
Speaker 3 (31:07):
Just means, you know, if you de linked, then you're
If your assets are at Schwab or Fidelity, then they
just continue to stay there.
Speaker 2 (31:15):
Okay, So we're going to talk about some dividend uh,
paying investments or just dividends in in category and why
that's so important, and also what a typical asset allocation
looks like that our clients have. So you're listening to
the Wise Money Guys radio show. I'm your co host,
John Scambray and I'm here with and we should mention
(31:38):
that we now film this radio show that we're doing
and we so we have a YouTube channel that you
can listen to all our previous episodes and so and
some other little shorts that we do where we just
give tidbits of of what the show will be about.
And that's on YouTube. And so you go to YouTube
(31:59):
and then you just search for the Wise Money Guys
and then you'll find us and our videos there. And
the Saturday show like we're doing now is usually posted
and our producer does that pretty quickly, so that's usually
just a day or so after that you'll find it
up on So if you want to listen.
Speaker 3 (32:19):
While you're driving and go put you know the podcast.
Speaker 2 (32:21):
So I mentioned dividends, dividends and interest are so crucial
to your total return. They're often overlooked. I mean people
when we see their portfolios for the first time, we
find that, Wow, all your investments are growth based. That
the main way you make money is you have to
(32:42):
pay a low price and then hopefully sell it for
a higher price and lock that in to realize a return.
Otherwise it's not even real.
Speaker 3 (32:51):
You know.
Speaker 2 (32:51):
So and many times, you know, clients, especially ones that
have a low cost base and positions will never sell.
So then you've never really actually made a profit on
that position. Well, it's just on paper.
Speaker 3 (33:05):
And they don't want to sell because then now they're
worried about when I got to pay capital gains tax
on on its selling. So it's it's kind of a
double edged sword.
Speaker 2 (33:15):
So now you can get double digit dividends, and on
top of that, because of the market pullback, you can
get double digit dividends in great you know stocks and
stock ETFs that you know literally have both the room
to appreciate grow in price as well as consistently pay
(33:38):
that dividend. And a simple one and I'll throw out
one that's in our client portfolios. And this isn't a recommendation,
it's just something that we currently have and utilize. And
keep in mind, this is one small example. So whether
or not you put that into your portfolio, Consult your
tax person, consult your investment professional, you know, do your research,
(34:01):
and then make sure you don't over bet on any
one position. But one that we've used quite a bit
because it falls in the fixed income space is PIMCOPDI
because it's a global bond e t F and it
pays double digits. And I've had that. I've had that
(34:21):
in people's portfolios for probably five years or certainly close
to that, and it's consistently paid a double digit dividend,
you know, year in, year out. And the best part
is it pays it monthly. It takes the annual dividend
and pays a piece of it monthly. And that's just
(34:42):
one small example of one position in one classification of
investments that if you're working with folks like us, you
would potentially have in your portfolio to help you accomplish
ever your goals are for that portfolio. If it's in distribution,
you know that that's super important. If it's legacy, also
(35:07):
super important. But total return needs to be made of
both things. Did I pay a good price for that
investment where it will stay at least the same or
go up? And does it pay me good cash flow?
Like rental real estate that we were talking about earlier,
and if not, then we change you into something else.
(35:30):
So you know, this is very crucial nowadays with inflation
being you know, yep, it has cooled, but only the
rate of price increase has cooled. Prices gas has come
down a little bit. And I just saw today on
TV and then read a report that insurance premiums have
(35:51):
actually come down a little bit.
Speaker 3 (35:53):
I know.
Speaker 2 (35:54):
I was shocked too, because.
Speaker 3 (35:56):
Supposed to be going up.
Speaker 2 (35:57):
I know, but up until March thirty, first, the first
quarter of this year, they went through the roof, and
then now.
Speaker 3 (36:05):
They believe what I actually see. My statement, well.
Speaker 2 (36:07):
You're not, let's face it, in California, we're.
Speaker 3 (36:10):
Not going to California. We're going to get another race
at all.
Speaker 2 (36:12):
It probably should have said asterisk down at the bottom everywhere.
But the reality is is, and that's where I was going,
is that prices are high. So if you did a
plan or had goals based on what prices were just
as short a while ago as twenty twenty two, that's
(36:34):
not the case anymore. That the need to make more
than three or four percent is almost in all cases
that we're finding, whether you have you know, millions of
dollars or hundreds of thousands of dollars. You know, a
three to four percent rate to return is not going
to cut it.
Speaker 3 (36:50):
Well, we just did a webinar and we have a
slide and it compares prices of homeowners insurance, gasoline, eggs,
cost of energy like electric utility, and what it was
in twenty nineteen and then what it is currently now.
And I think the lowest inflationary was gas is forty
(37:14):
six percent higher and everything else was one hundred percent
or more as far as a price increased just from
pre COVID to what things are right now.
Speaker 2 (37:25):
So yeah, and speaking of prices and the inflation that's happened,
I mean we had mentioned Jerome Powell earlier. He actually
thinks prices are going to go even higher. So if
that's the case, the rates because of actually go higher,
well because of terrorists or and interesting that you know,
(37:48):
Jerome Powell has now now made political commentary which he's
never said a word on the political mistakes that were
made in the previous administration. Yeah, he was asking certainly
not the mistakes that he made. And the one mistake
that this FED chair always makes is being way too
late to the party.
Speaker 3 (38:09):
Well, no, they're forecasts. They always forecasts. And that's the
problem is they always forecasts. The Federal Reserve used to
be an operated in a in a manner of scarcity.
Now it's a matter of abundance, like we're going to
provide and provide what's called a FED put. But they
do and they project out and forecast what's inflation, what
(38:32):
do they need to do in the next like three
to six to twelve months, and then they either keep
rates or you know, contract monetary supply or expanded what
have you. But you look at the forecast record and
the track record, it's horrible.
Speaker 2 (38:45):
It's terrible.
Speaker 3 (38:45):
But you have a good point because I remember last
year at the f MC meetings, after he has a
speech and then he has Q and a that there
was questions from reporters out there asking what do you
you know, what do you think about the continued government
spending and that is that and how do you guys
work with the government, and is that you know because
(39:07):
that's been kind of the cause of the inflation, and
you know, he doesn't have any really remarks.
Speaker 2 (39:12):
Or yeah, quite frankly, I think Jerome pell is now
in the Kramer category, where you do the opposite from
an investment perspective, whatever versus Jerome per is going to
be and he's quite frankly, he's he's even a lamber
duck than than Trump, meaning just term wise, because his
terms up in May twenty twenty six and he's gone.
(39:36):
He may be kicked to the curb even sooner if
there is a way to legitimately fire him for just causality.
I mean, he was wrong about inflation.
Speaker 3 (39:49):
And him and they admitted it.
Speaker 2 (39:51):
Don't even get me started.
Speaker 3 (39:52):
And here's the problem is they both admitted that they're
wrong after they're wrong when they said inflation was transitory.
If we were wrong.
Speaker 2 (39:59):
Yeah, that wrong, right, clients would fire us, we wouldn't
have a job, yeah, exactly.
Speaker 3 (40:05):
So it doesn't work that way in the government.
Speaker 2 (40:07):
Nobody's right one hundred percent of the time. So of course,
so we're not beating them up too much. But when
it's something when you have the ability to speak to
move markets, you should absolutely shut your trap. Jerome Palll
should not be on TV talking outside of f o
MC meetings and what they discussed. You know, now he's political.
(40:31):
Now he's I kind of feel that same administrative policy.
Speaker 3 (40:35):
I feel the same way for Trump to just do
what you're going to do. Don't announce this and that
and what might come and so on and so forth.
Just do it. Just don't don't just get off of
social media, get off of TV. All these FED because
there's FED speakers, you know, sometimes in a week there's
like three or four different FED president speakers and their thoughts,
(40:55):
and then the market's gyrate based off of their thoughts
and their potential forecasts and so on forth. Just take action.
Speaker 2 (41:01):
That's it. And the only reason why any of them
are good at the markets is because they have inside information.
I mean, if you knew that the the FED was
going to raise or cut interest rates, as a member
of the f o MC, obviously you know what you
should do.
Speaker 3 (41:17):
With Marcus do react. Look at what happened when they
said that they were going to cut race. That's prior
to September last year.
Speaker 2 (41:24):
The only reason why these morons make money is because
they know that their content moves the market, you know,
so they know based on what they're going to say exactly.
Speaker 3 (41:38):
Her portfolio, her portfolio is way above and beyond even
Warren Buffett.
Speaker 2 (41:42):
And she's dumber than a box of rocks. There's no
way she should have made even a single nickel. But
because she knows what policies are coming out, she knows
what companies and countries are going to set the sectors
from those policies. And so, you know, the average person
doesn't have access to inside information, this information, so you
(42:03):
need folks that are going to analyze all of this.
So we take all of that into consideration, what the
Feds are doing, what policy makers are doing, what you
know things are happening economically, what things are happening geopolitically,
so on and so forth, to find the investments that
are going to help you accomplish your goals. And so
(42:25):
for more information, to schedule a no obligation consultation or
register for our April thirtieth workshop at the Old Spaghetti Factory,
call us at nine one six nine six seven thirty
five hundred again ninety six seven thirty five hundred. Hope
you enjoyed the show. That's all we have. Have a
wonderful weekend by all. Happy Easter,
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 Wisemoney Guys Radio Show. I'm your co host,
John Scambray and I'm here with my partner just up you, Viscontin,
and we are certified portfolio managers that specialize in helping
people who are retired are about to retire manage their money.
If you'll like our show and have any questions or
want to get a hold of us for a new
obligation consultation, or register for our upcoming seminar on April
(00:37):
thirtieth from six to seven thirty pm at the Old
Spaghetti Factory in Roseville called nine to one six ninety
six seven thirty five hundred. You can also visit our
website at Wysemoneyguys dot com and from there you can
click on register for the seminar on August thirtieth, or
(00:58):
you can fill out out a chat a questionnaire A
chat yet what it is exactly, but there's a form
on there for a no obligation consultation as well, in
which Kathy will then call you to put you on
our calendar again called nine six, seven thirty five hundred
for anything else that we haven't addressed. So what are
(01:21):
we talking about today, does Eppie?
Speaker 3 (01:23):
Well, we get the markets we had. Jerome Pell made
some comments. Also, FED President Williams of New York made
some comments in regards to He was asked questions as
far as potential rate cuts and where the Federal Reserve stands.
We've talked a lot about the Federal Reserve. It is
important a lot of other countries look out for that.
Speaker 2 (01:43):
Tariffs have escalated, as it used to be inflation, inflation, inflation.
Now the news is tariffs.
Speaker 3 (01:49):
Tariffs, tariffs still inflation. Well, but now this spins on
tariffs causing inflation, and I'm sure you'll have some insight
on that.
Speaker 2 (01:57):
Yeah.
Speaker 3 (01:58):
Outside of that, know where the markets are at, you know,
this past week and the escalation of terrasts between US
and China, while we get through this ninety day delay
with the rest of the countries, and outside that mark
you know, economic indicators, nothing nothing really big out there
(02:20):
for this past week. We do have earning so we
started earning season, which is big started off.
Speaker 2 (02:25):
With banking financially crushing it.
Speaker 3 (02:28):
Yep, some financial So that's also going to be something
to track and important to watch as we continue on
with the earning season, and more so the forward guidance, right,
and what companies You.
Speaker 2 (02:41):
Notice some companies have now said they're because they don't know,
you know, what the impact of policies, they're saying they're
not going to forward get forward guidance, which has always
been my position, Why the heck is, how do you
do it? Yeah? Well, yeah, a year from now, two
years from now, we think we're gonna that's worthless because
(03:03):
nobody knows what's going to happen literally tomorrow, let it alone.
What's going to happen a year from now or two
years from the order from now?
Speaker 3 (03:10):
I think part of it is you know, charting, charting
goals and what what their what their sentiment is of
how they want to grow moving forward, right, and that's
what people want to hear, and what what do you
think is going to help support that, you know, thesis?
And what do you think is gonna you know, take
away from it? I think, And then outside of that,
obviously the big thing this this past week really as
(03:33):
far as news was in Vidia and the you know
blocking of Cell of chips to China, and that really
impacted in Video's price, which then also trickled into a
lot of other tech sector uh stocks and companies and
drag the market down.
Speaker 2 (03:47):
But I think it really just caused Nvidia and chip
stocks to just be fairly priced actually because quite frankly,
you know, as we as we've discussed, you could just mention, oh,
we're gonna, you know, spend money on R and D
on artificial intelligence, and the stock went through the roof
and it had nothing to do with the fundamentals of
(04:10):
the company's financials.
Speaker 3 (04:12):
Could be dollars, could be Dollar General saying that they're
gonna do AI investment and then Dollar General goes out.
Speaker 2 (04:17):
So I mean, I think in videos, like I said,
fairly priced at around one hundred dollars. Did we see
it go lower? Yep, it dipped into the high seventies eighties,
and and certainly its hie was in the you know,
the high one forties. But still I think, you know,
in the one forties it was overpriced, and I think
(04:37):
at you know eighty it was under price.
Speaker 3 (04:39):
So well, and I think the I think the the
main catalysts to that, and the AI not so much.
The recent news of the blockage of chips obviously has
a direct impact because if that continues to stay, that
impacts some you know, impacts of video by five point
five billion dollars, you know, with those H two h
(05:00):
I'm saying that right, sounds funny.
Speaker 2 (05:02):
But I.
Speaker 3 (05:05):
Think it's the H two oh chips, right. But I
think it's the deep seek right that came out, and
and the AI that was generated for less of a cost,
And I think that that spun the whole AI realm.
Well is do you need to actually spend all those
billions and billions of dollars to where you need to
(05:27):
get to go?
Speaker 2 (05:28):
Well, you know there was a lot of speculation after that.
That's so much of that was false. You can't you
can't trust us. It was millions and and quite frankly,
I think the the administration and its effort to rein
in the absolute theft of intellectual property, the absolute terrible
(05:56):
imbalance between what China does with the money that we
invest in their country versus the money they invest in
our country. I mean, it all goes to their military machine.
It doesn't go into anything that's good for humankind, and
so I think this is warranted. I'm in fact, I'm
(06:18):
happy that we're not making a deal with China at
least currently, although Trump said today that, oh, no, we'll
make a deal with China, and no, I think, you know.
Speaker 3 (06:29):
Well, I think a deal will have to be struck
at some point because the continuing raising of tariffs, because
they raised what China raised to like two hundred and
forty five percent and we're at four hundred and twenty.
That continues to go up. You know that there's there's
going to be an end point at that at some.
Speaker 2 (06:44):
Point, but not really realize that. You know, for more
than one hundred years, goods and services had zero reliance
on China, and so the only issue is is that
how quickly can we get rid of the reliance on China. So,
(07:05):
you know, the pain point is what everybody is the
asset managers, money managers like ourselves are struggling with, is
the short term pain to get to an outcome that
puts us more on a more reliable footing when it
comes to our essential goods and services and raw materials
(07:27):
and energy, so on and so forth. So from a
super point, yeah, I mean, really, do you want your medicine,
you know, coming from China when we know.
Speaker 3 (07:37):
And it doesn't matter China, Russia, Cuba. You know, it
doesn't make it doesn't make sense exactly. It doesn't make
sense to have essential needs and services that we're going
to be reliant upon a country that's a non allied country.
Speaker 2 (07:55):
This doesn't make sense, no, exactly. So, like I said,
it's short term pain. But I do think this is
a buying opportunity. I mean, again, we were talking about
it Vidia and Vidia. If it's something that you feel
like you wanted to own, this is a much better
price to own it than when it was you know.
Speaker 3 (08:13):
Or Palunteer or any of those names that you know,
got the headlines and you saw triple digit returns, you're like, oh, mesh,
should I get into it? Should I get into it?
Speaker 2 (08:22):
Yeah?
Speaker 3 (08:22):
Exactly, You're exactly right. This is a time where you start,
you can start looking at it. But a lot of
times people will do the opposite because now they're worried
about like, oh my gosh, this is going to be session.
Is it going to go is the stock market going
to go even lower? And it could. I mean there's
still an uncertainty, and these things have to get figured out.
Like you said, it's not an overnight deal, right, These
things don't get figured out overnight. And I think a
lot of it has to be initiated. It's kind of
(08:44):
being forced upon, you know, corporations, but they have to
take the stance and say, all right, we're done with it.
Let's go find either find out like in Video is
starting to build chips here, and if they need to
have some cheap labor and costs, go find some other country.
But that's going to be an ally with us exact
that they can have some cheap labor and land to
(09:05):
do it. But you're not going to have an adversarial
country where when tensions rise. Now you're in a situation
like you're in now, every blocking blocking each other.
Speaker 2 (09:14):
Everybody keeps just uh, tiptoeing around. And I wasn't sure
if you could say the other phrase, which is cat around,
But what you call a cat around? Okay, well it
has to do with cat foot.
Speaker 3 (09:32):
I'd rather look at a math problem trying for you
this out.
Speaker 2 (09:34):
Well, again, I don't know if you could say the words,
so that's why I'm not saying it. But tiptoeing around
the fact that China is not our friend. They are foe,
and no, no one should be doing business or helping
a foe get even stronger and helping them with their
their efforts to dominate the world.
Speaker 3 (09:57):
As we did. I know, we out of out of green. Yeah,
exact it got it got them to the number two
you know economy in the world. And now they're backpedaling.
But the thing is that backpedaling is not coming from
my point, is not initiated by the corporation saying all right,
we need we need to restrategize here, just kind of
going with a flow, right, But now with the current
(10:19):
administration and Trump Trump and the tariffs, it's forcing the issue, right,
and they're saying, okay, we need to Maybe we thought
about this before, but now we've got to go to
the drawing board. We gotta, we gotta, we gotta figure
something out.
Speaker 2 (10:29):
Yeah, So we'll be talking about these these major geopolitical
issues and financial issues, but more importantly, we'll be discussing,
you know, your typical tactics that people like ourselves are using.
Should you get in, if you should get into some
of these things like Nvidia, or should you still get out.
(10:51):
And so I'm your co host, John Scambery and I'm
here with my partner Jaepa Viscountin. So we were talking about,
you know, some of the the nuances of the trade
war with China, and then I mentioned, you know, should
you be buying here? And again, first of all, it
(11:12):
depends on what your goals and objectives are and what
your tolerance for risk is what it really boils down to,
because at the end of the day, if you look
at most clients, at least most clients that we work
with or meet, you know, most are happy with a
high single digit you know, long term return. Well you're
(11:33):
not going for a double digit or a home run
like oh you know.
Speaker 3 (11:37):
You know some some have gotten away with it. I
mean not gone away, they got ahead of themselves because
I think most people all they need is a high
single digit annualized return exactly. But because of all the
euphoria that's taking place with you know, the markets and
how they performed in twenty three, twenty four and some
of these high flyers and AI stocks and what have you,
(11:58):
they chased it. So there's so they got away from
the idea of all I need is my portfolio to
do high single digit return to get to where I
need to go. But you know what, I need that
double digit return because I'm watching the news and I'm
watching Jim Kramer and he's talking about you know whatever.
Speaker 2 (12:15):
He is the one of the worst you know, uh
people when it comes to how his recommendations have performed.
Speaker 3 (12:21):
No, he's great. You just do the inverse. You do that,
you have great, Great, there's actually an inverse etf.
Speaker 2 (12:29):
Of Kramer recommended. Whatever he talks about, they do.
Speaker 3 (12:31):
The inverses actually has pretty I haven't looked at it recently,
but I think I looked at it last year or
the year before and actually had a pretty good track record.
Speaker 2 (12:38):
So the reality is for us to say, yes, you
should buy this investment or that investment right here. What
you what you were starting to get to is that
it's really about knowing and I think I coined this
right frankly, but really knowing what your minimum return to
objective is. And that's a planning conversation where you know,
(13:02):
we find out, okay, well what type of return do
you need to make to accomplish whatever your goals are,
And those goals might be I need income off of
my investments, or I want to create a legacy, I
want to increase my wealth, I wanted it to go
on to the next generation charities, whatever the case may be.
And here's my comfort for risk. And then that determines
(13:27):
what sort of rate of return you need on your money,
and then that answers the question of what sort of
investments should I be rebalancing to and buying right now?
I mean, that is the crucial component here.
Speaker 3 (13:42):
So otherwise, if you're looking at, for example, and Vida
just because we've talked about it and saying, oh, I
want to buy it because I think it's going to
go back to one hundred and fifty, is that what
you need in your portfolio?
Speaker 2 (13:53):
Right?
Speaker 3 (13:54):
But it's looking at the big it's taking the big
picture and looking at what's need and then diving down
into the details. So it's it's essentially you're in a
plane and you're at the thirty five thousand, uh you know,
foot level as far as elevation, and then you start
coming down and you're looking at all the details of trees,
houses and so on and so forth, instead of the reverse.
(14:16):
A lot of people will look at it and say, oh,
I'm gonna buy an video. I'm gonna buy a pouncer
because last year was up you know, to X amount
and whatever, and maybe this is my opportunity and I
can I can get get it. You know, a nice
twenty five fifty hundred percent return. I missed out and
it last time. I want to get into it. Now
it's like two thousand and eight, right, pre two thousand
and eight crisis, people who weren't real estate investment. You know,
(14:40):
people had portfolios. Yeah, they didn't have rental properties. Two
thousand and eight hit. They waited because everything was scary.
But then now you have people when things started getting better,
right like twenty eighteen, twenty nineteen, so on and so forth,
and people are coming out of the woodworks. Oh I
want to and we've seen it from clients too. I
want to buy a rental property. Have you ever owned
into property?
Speaker 2 (15:00):
No?
Speaker 3 (15:01):
Why do you want to buy it? Oh? Because you
know it's it's yeah, it's a good return, this and that,
so and so forth. When you break prices down exactly,
it's like I missed the boat doing it back in
the two thousands and so now I want to jump
on the bandwagon. I think here's my time. Now. Now,
there's nothing wrong with looking for opportunities when they get
beaten up, but you don't want to get so laser
focused on I need to. I need to, you know,
(15:23):
I missed out on that one hundred percent return, and
I want to get into it because then you have
these times like this and this will come again. It's
not like the market's down now. Present some opportunities, you
get into it, maybe you make some good money. Doesn't
mean that it just goes up from there, because then
another event will happen, and then it goes down and
you're in this pain point.
Speaker 2 (15:43):
It's a good comparison because so many of our clients
do have investment real estate, and quite frankly, what's what's
I don't know if it's alarming or shocking to them,
but a lot of the times it is. And I'm
thinking of this one particular client where she's eighty seven
years old and she has six rental properties, and based
(16:05):
on what she paid for those and based on the
net cash flow, that's a lot of times what people
don't truly know is what is your true net on
your investment real estate? Are you factoring in the property taxes?
Are you factoring in the homeowners of the shire. Are
you factoring in you know, yard maintenance, if you include that,
(16:28):
a lot of people, you know, include their water and garbage,
are you factoring that in? And then as you said,
are you factoring the maintenance in? And I actually showed
her that she was getting less than a four percent
net return, and she was absolutely shocked because she was
just considering the top line of the income, just the
(16:50):
gross factory and not factoring in the overhead of and
then not factoring in what a hassle just to be
you don't have a renter or you have a bad renter,
and quite frankly, to get a four or five percent
you know that cap rate on investment real estate is
(17:12):
substandard on what you could get in just like the
JP Morgan bond that we were showing another client five
point six percent. She walked into the bank and they
said we can give you a three point four or
five percent rate, and she thought, oh, that was decent,
and this is JP Morgan. And then we showed her
that the A rated JP Morgan bond pays five point
(17:34):
six and she was like, well, why would I want
the three point four to five And we went well,
I don't know because it's the same.
Speaker 3 (17:43):
But well, the thing is is you don't know what
you don't know, right, And a lot of people out there,
and she didn't know all of her options, nor was
she presented all the options out there, and that's why
she didn't know. And so, you know, there's a ton
of different investments out there. In real estate is a
hot one right now because we do have clients and
there's people out there that have had real estate for
a long time. They now might be in their eighties.
(18:04):
They manage it themselves, and now they're at a point
in time saying like I'm done with this, you know,
and it's appreciated and I could sell it, and maybe
my net return isn't as good as it used to be,
or whatever the case may be, because maybe expenses your
homeer's insurance went up. Maybe I could cancel it and
you're on the California Unfair Plan and your net cost
is your net cost has actually gone up. Some of
(18:28):
the opportunities out there. As far as investments that we
help our clients is actually ten thirty one exchanges into
DST Delaware Statutory Trust, which you actually have direct investment
into real estate portfolios, right, and you have to look
to see what's available out there. But then these are.
Speaker 2 (18:47):
What we do for you. We look to see what's available.
Speaker 3 (18:49):
Right, and then that way you're still in real estate.
But the difference is is you're not managing it and
you're still and you're getting a decent return right, and
you're getting the cash flow you get.
Speaker 2 (19:00):
The best part is you're forgetting the best part of
why you would why you ten thirty one into tax tax?
Speaker 3 (19:10):
Do you continue to tax defer so you don't so
you don't have to gain you're not paying the capital gains.
And a lot of times, you know, somebody sells a
property and then they have a short window period of
time if they want to go look for another property
themselves to do an exchange.
Speaker 2 (19:24):
Yeah. Quite frankly, many people make the mistake where they
learn about these things after selling the property and then
they have already taken constructive receipt of the proceeds from
the property they've sold, and then you're you've just done it.
That's it. You've just you can't even if it's in
the timeframe, once that goes into your name and to
your account, you cannot turn around and go oh, I
(19:47):
want to do the ten thirty one exchange.
Speaker 3 (19:48):
So yeah, clock's ticking now. The other thing too, of
these DST opportunities is it's not just going into another
residential house. There's multifamily, there's storage units, there's medical, medical
and health centers out there. There's distribution centers like Amazon.
So there's all kinds of different portfolios out there. Some
(20:11):
that are existing that have availability to get into, some
that are newly developed. But those are things that we
look out for clients who have some real estate out
there and like, hey, I'm going to unload some of this.
What do I do with the money? But I don't
want to pay taxes on the capcains.
Speaker 2 (20:24):
Yeah. I mean, at the end of the day, you know,
it's really having a diversified, truly diversified. We always need
to clarify that because most people think they're diversified when
they have a mutual fund or different brand mutual funds
that they're holding in different brokerage accounts at different firms.
That's not diversification. Diversification is being in asset classes that
(20:48):
have a low correlation to each other and hopefully a
low standard deviation. Certainly during really volatile market times like
right now, and in fact, you know, we'll talk a
little bit more about our asset allocation because I think
people will be shocked the types of returns we're getting
people without, you know, taking the risk that we see
(21:10):
that most people are.
Speaker 3 (21:11):
Shaking, shedding any unnecessary risk off that we can, so
you're not riding this big roller coaster ride.
Speaker 2 (21:17):
So we're going to talk about dividends and interest. I'm
your co host, John Scambery, and I'm here with my partner,
and in case you've tuned in for the first time,
we are certified portfolio managers. Basically, what that means is
we have taken the extra time to complete a very
advanced credential through a very difficult program to be specialists
(21:41):
in portfolio construction, investment, you know, analysis, investment selection, planning,
so on and so forth. So not only that, but
I often like to mention because it's pretty impressive that
Giuseppe also holds a master's in echo and finance and
(22:01):
is also a chartered retirement planning counselor. So you know,
not only are we battle tested, we've been doing this
a very long time, me for over thirty years and
Giuseppe under twenty but getting towards twenty, so fifty years
almost combined. And that makes us, you know, when you
put the two together, highly experienced and then highly educated
(22:27):
in the field is the type of people you want
working for you when it comes to managing something as
important as your investments.
Speaker 3 (22:36):
So the other thing is we use some big name
custodians where we house all of our clients.
Speaker 2 (22:45):
We us some excited news on that front.
Speaker 3 (22:47):
That too, and so we have our main is Schwab
that we use on the institutional.
Speaker 2 (22:52):
Charles Schwab Schwab Charles Chuck Chuck.
Speaker 3 (22:56):
Up and Interactive Brokers, and we just inked the deal
will be pretty soon having access to a few other
major platforms out there, probably in the next couple months,
I mean Fidelity, Goldman, Sachs and Pershing and all that's
going to really allow us to do is it puts
us in a you know, in the position that we're
(23:18):
in right now, is an RIA registered investment advisory firm.
Allows us to be unchained and not handcuffed to certain
platform or certain investments in a narrow menu of options
out there. We have a plethora of options out there,
and now all we're doing is we're just adding even more.
Speaker 2 (23:36):
Yeah, and quite frankly, that is such a difference. You know,
most independence they don't have multiple custodians, they don't have
the access breath, experience, you know, education, background, you know, results,
the value prop everything that we bring to the table
(23:57):
is getting harder and harder to find, especially as the
population of good I use the word good loosely investment
advisors dwindles because the average age is, you know, in
the sixties, certainly the late fifties, sixties, and many of
the talented people are retiring or have retired. And then
(24:20):
you've got you know, dare I say it, the rising
stars like ourselves, even though that might be more use
since you're still in your forties and I'm in my fifties.
But nevertheless, experience is crucial being a student of this game,
the time and effort that Giuseppe and I put in
(24:42):
to having the knowledge and the skills to help you
through whatever your situation is, and more importantly, whatever the
situation is, that the country, the world, our economy you know,
is being thrown at us. And that's why, which is
quite a bit we highly recommend you do not go
(25:02):
it alone. If you're in your fifties, sixties, seventies, eighties
and you've been just managing things yourself and now you've
watched them go toppy turvy and you're having trouble, you know,
with decisions on you know, how to change your portfolio,
what you should be in, what you should be out of,
what you should add to, and how it'll affect your
(25:25):
your wealth long term. You know, we're the right people
to call. Call us at nine one six ninety six
seven thirty five hundred and if you're not ready to
come in for a new obligation consultation, then register for
our seminar and do it quickly. It's only two weeks.
It was two weeks from yesterday flying and last time
(25:46):
we had over one hundred registrants and we had to
cut it down and say no, we can't take any
more registrations. So that's on April thirtieth, from six to
seven thirty pm at the old spaghetti factory in Roseville
called nine one six nine six seven thirty five hundred.
And at that, you know, a seminar, we literally show
(26:11):
people how to reduce their risk and how we do that.
We show people how to increase their income from the
investments that they could potentially have, and how specifically we
exactly do that with examples of what we're currently doing.
And most importantly, we show and prepare our clients and
(26:34):
then show our guests at the workshop how we help
people have the confidence of never running out of money.
So this is so timely right now. And you know what,
there's not many people, it's certainly not in northern California
and Nevada that do these things in Perfson, at least
(26:57):
on our side of the business. Now, there's the typical
annuity guys where everything fits an annuity, and I know
some of them are out there doing some dim dinner seminars,
But what they're going to try to do is sucker
you into an annuity that they get paid you know, five, six, seven, eight,
as high as ten percent commission up front and then
(27:19):
never talk to you again unless you have you know,
another five hundred thousand or million to buy another annuity.
And so and.
Speaker 3 (27:27):
That's that's important. That goes back to my point, which
was or statement of having a lot of choice and
options because off whoever you're dealing with, whether you know,
if you decide that you know, you want to have
a consultation with us, great, But if you have existing
advisor you're looking or talking with somebody else, you got
to make sure that they have a plethora of options
(27:49):
out there. Number one, So that there's a lot of
choice so they can really custom tailor, uh, you know,
fit a portfolio that's going to be fitting to your knee,
your timeline or risk tolerance, your financial goals, so on
and so forth. Number one and number two, that they
have that discussion with you and letting you know what
all the options are out there, different asset classes, different
(28:12):
types of investments, what they do, how they react to
different market environments. Because if they don't, then it's like
somebody coming to me and saying, hey, I'm interested in
buying a car, and I take them directly to a
Ford dealership. Yeah, well guess what they're going to be
end up buying, right, Versus I say, okay, well let's
go to you know, bottom All or CarMax and there's
(28:35):
you know, ten different manufacturers out there that you can
pick and choose from.
Speaker 2 (28:39):
So you're not saying we're used car salesman, are you?
Speaker 3 (28:42):
I'm definitely not you.
Speaker 2 (28:45):
I do believe in buying a certified pre honed car
though over a brand new car. Let somebody else drive
it off the lot and eat all the depreciation and
then buy it with a you know, an extended wall there.
Speaker 3 (28:57):
Sometimes there are some good brand new deals out there,
either with incentives to or low interestrate, you know, a
massive reduction on MSRP or the interest rate. Sometimes that
have zero percent financing, and sometimes that could be worth it.
Speaker 2 (29:10):
Yeah, at the end of the day, what it boils
down to is that fiduciary standard. Are you working with
or is the person a fiduciary? And basically what Giuseppe
was describing is we are fiduciaries. And not only are
we fiduciaries, we're even now custodian and firm agnostic on
(29:31):
where you know, we howse you house your investments. So
if you already have a Goldman brokerage account, or a
Fidelity brokerage account, or a Schwab brokerage account, so on
and so forth, we're agnostic to that. We simply become
your investment advisor and we do that in a fiduciary
(29:52):
relationship under an investment advisory agreement, and we charge an
annual fee that we break down into four corely payments.
And what's amazing to me and I often, you know,
shake my head and go, why are we doing this
right now? Under our current process, there isn't a full
fee until October, a full quarterly fee until October. There's
(30:17):
a partial fee that we would be charging in July,
but still for seven plus month months of work, you're
gonna pay less than half of our annual fee to
try us and get started and see if we're what
we say we are. And the great news is, we
never put people in anything that you can't get out of.
(30:40):
We don't ever put people in something where we make
some huge commission up front, and we never put people
in a situation where they can't cancel. If you're not
happy with the value and the service and the skills
and the knowledge we bring to helping you with your money,
you can delink us at any time. And you got
(31:00):
to be pretty confident in your abilities when you operate
under that sort of those what.
Speaker 3 (31:07):
Just means, you know, if you de linked, then you're
If your assets are at Schwab or Fidelity, then they
just continue to stay there.
Speaker 2 (31:15):
Okay, So we're going to talk about some dividend uh,
paying investments or just dividends in in category and why
that's so important, and also what a typical asset allocation
looks like that our clients have. So you're listening to
the Wise Money Guys radio show. I'm your co host,
John Scambray and I'm here with and we should mention
(31:38):
that we now film this radio show that we're doing
and we so we have a YouTube channel that you
can listen to all our previous episodes and so and
some other little shorts that we do where we just
give tidbits of of what the show will be about.
And that's on YouTube. And so you go to YouTube
(31:59):
and then you just search for the Wise Money Guys
and then you'll find us and our videos there. And
the Saturday show like we're doing now is usually posted
and our producer does that pretty quickly, so that's usually
just a day or so after that you'll find it
up on So if you want to listen.
Speaker 3 (32:19):
While you're driving and go put you know the podcast.
Speaker 2 (32:21):
So I mentioned dividends, dividends and interest are so crucial
to your total return. They're often overlooked. I mean people
when we see their portfolios for the first time, we
find that, Wow, all your investments are growth based. That
the main way you make money is you have to
(32:42):
pay a low price and then hopefully sell it for
a higher price and lock that in to realize a return.
Otherwise it's not even real.
Speaker 3 (32:51):
You know.
Speaker 2 (32:51):
So and many times, you know, clients, especially ones that
have a low cost base and positions will never sell.
So then you've never really actually made a profit on
that position. Well, it's just on paper.
Speaker 3 (33:05):
And they don't want to sell because then now they're
worried about when I got to pay capital gains tax
on on its selling. So it's it's kind of a
double edged sword.
Speaker 2 (33:15):
So now you can get double digit dividends, and on
top of that, because of the market pullback, you can
get double digit dividends in great you know stocks and
stock ETFs that you know literally have both the room
to appreciate grow in price as well as consistently pay
(33:38):
that dividend. And a simple one and I'll throw out
one that's in our client portfolios. And this isn't a recommendation,
it's just something that we currently have and utilize. And
keep in mind, this is one small example. So whether
or not you put that into your portfolio, Consult your
tax person, consult your investment professional, you know, do your research,
(34:01):
and then make sure you don't over bet on any
one position. But one that we've used quite a bit
because it falls in the fixed income space is PIMCOPDI
because it's a global bond e t F and it
pays double digits. And I've had that. I've had that
(34:21):
in people's portfolios for probably five years or certainly close
to that, and it's consistently paid a double digit dividend,
you know, year in, year out. And the best part
is it pays it monthly. It takes the annual dividend
and pays a piece of it monthly. And that's just
(34:42):
one small example of one position in one classification of
investments that if you're working with folks like us, you
would potentially have in your portfolio to help you accomplish
ever your goals are for that portfolio. If it's in distribution,
you know that that's super important. If it's legacy, also
(35:07):
super important. But total return needs to be made of
both things. Did I pay a good price for that
investment where it will stay at least the same or
go up? And does it pay me good cash flow?
Like rental real estate that we were talking about earlier,
and if not, then we change you into something else.
(35:30):
So you know, this is very crucial nowadays with inflation
being you know, yep, it has cooled, but only the
rate of price increase has cooled. Prices gas has come
down a little bit. And I just saw today on
TV and then read a report that insurance premiums have
(35:51):
actually come down a little bit.
Speaker 3 (35:53):
I know.
Speaker 2 (35:54):
I was shocked too, because.
Speaker 3 (35:56):
Supposed to be going up.
Speaker 2 (35:57):
I know, but up until March thirty, first, the first
quarter of this year, they went through the roof, and
then now.
Speaker 3 (36:05):
They believe what I actually see. My statement, well.
Speaker 2 (36:07):
You're not, let's face it, in California, we're.
Speaker 3 (36:10):
Not going to California. We're going to get another race
at all.
Speaker 2 (36:12):
It probably should have said asterisk down at the bottom everywhere.
But the reality is is, and that's where I was going,
is that prices are high. So if you did a
plan or had goals based on what prices were just
as short a while ago as twenty twenty two, that's
(36:34):
not the case anymore. That the need to make more
than three or four percent is almost in all cases
that we're finding, whether you have you know, millions of
dollars or hundreds of thousands of dollars. You know, a
three to four percent rate to return is not going
to cut it.
Speaker 3 (36:50):
Well, we just did a webinar and we have a
slide and it compares prices of homeowners insurance, gasoline, eggs,
cost of energy like electric utility, and what it was
in twenty nineteen and then what it is currently now.
And I think the lowest inflationary was gas is forty
(37:14):
six percent higher and everything else was one hundred percent
or more as far as a price increased just from
pre COVID to what things are right now.
Speaker 2 (37:25):
So yeah, and speaking of prices and the inflation that's happened,
I mean we had mentioned Jerome Powell earlier. He actually
thinks prices are going to go even higher. So if
that's the case, the rates because of actually go higher,
well because of terrorists or and interesting that you know,
(37:48):
Jerome Powell has now now made political commentary which he's
never said a word on the political mistakes that were
made in the previous administration. Yeah, he was asking certainly
not the mistakes that he made. And the one mistake
that this FED chair always makes is being way too
late to the party.
Speaker 3 (38:09):
Well, no, they're forecasts. They always forecasts. And that's the
problem is they always forecasts. The Federal Reserve used to
be an operated in a in a manner of scarcity.
Now it's a matter of abundance, like we're going to
provide and provide what's called a FED put. But they
do and they project out and forecast what's inflation, what
(38:32):
do they need to do in the next like three
to six to twelve months, and then they either keep
rates or you know, contract monetary supply or expanded what
have you. But you look at the forecast record and
the track record, it's horrible.
Speaker 2 (38:45):
It's terrible.
Speaker 3 (38:45):
But you have a good point because I remember last
year at the f MC meetings, after he has a
speech and then he has Q and a that there
was questions from reporters out there asking what do you
you know, what do you think about the continued government
spending and that is that and how do you guys
work with the government, and is that you know because
(39:07):
that's been kind of the cause of the inflation, and
you know, he doesn't have any really remarks.
Speaker 2 (39:12):
Or yeah, quite frankly, I think Jerome pell is now
in the Kramer category, where you do the opposite from
an investment perspective, whatever versus Jerome per is going to
be and he's quite frankly, he's he's even a lamber
duck than than Trump, meaning just term wise, because his
terms up in May twenty twenty six and he's gone.
(39:36):
He may be kicked to the curb even sooner if
there is a way to legitimately fire him for just causality.
I mean, he was wrong about inflation.
Speaker 3 (39:49):
And him and they admitted it.
Speaker 2 (39:51):
Don't even get me started.
Speaker 3 (39:52):
And here's the problem is they both admitted that they're
wrong after they're wrong when they said inflation was transitory.
If we were wrong.
Speaker 2 (39:59):
Yeah, that wrong, right, clients would fire us, we wouldn't
have a job, yeah, exactly.
Speaker 3 (40:05):
So it doesn't work that way in the government.
Speaker 2 (40:07):
Nobody's right one hundred percent of the time. So of course,
so we're not beating them up too much. But when
it's something when you have the ability to speak to
move markets, you should absolutely shut your trap. Jerome Palll
should not be on TV talking outside of f o
MC meetings and what they discussed. You know, now he's political.
(40:31):
Now he's I kind of feel that same administrative policy.
Speaker 3 (40:35):
I feel the same way for Trump to just do
what you're going to do. Don't announce this and that
and what might come and so on and so forth.
Just do it. Just don't don't just get off of
social media, get off of TV. All these FED because
there's FED speakers, you know, sometimes in a week there's
like three or four different FED president speakers and their thoughts,
(40:55):
and then the market's gyrate based off of their thoughts
and their potential forecasts and so on forth. Just take action.
Speaker 2 (41:01):
That's it. And the only reason why any of them
are good at the markets is because they have inside information.
I mean, if you knew that the the FED was
going to raise or cut interest rates, as a member
of the f o MC, obviously you know what you
should do.
Speaker 3 (41:17):
With Marcus do react. Look at what happened when they
said that they were going to cut race. That's prior
to September last year.
Speaker 2 (41:24):
The only reason why these morons make money is because
they know that their content moves the market, you know,
so they know based on what they're going to say exactly.
Speaker 3 (41:38):
Her portfolio, her portfolio is way above and beyond even
Warren Buffett.
Speaker 2 (41:42):
And she's dumber than a box of rocks. There's no
way she should have made even a single nickel. But
because she knows what policies are coming out, she knows
what companies and countries are going to set the sectors
from those policies. And so, you know, the average person
doesn't have access to inside information, this information, so you
(42:03):
need folks that are going to analyze all of this.
So we take all of that into consideration, what the
Feds are doing, what policy makers are doing, what you
know things are happening economically, what things are happening geopolitically,
so on and so forth, to find the investments that
are going to help you accomplish your goals. And so
(42:25):
for more information, to schedule a no obligation consultation or
register for our April thirtieth workshop at the Old Spaghetti Factory,
call us at nine one six nine six seven thirty
five hundred again ninety six seven thirty five hundred. Hope
you enjoyed the show. That's all we have. Have a
wonderful weekend by all. Happy Easter,
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