April 15, 2025 • 18 mins
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Episode Transcript
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Speaker 1 (00:01):
Welcome to the Fiscal Physical Podcast.
Join us each week as we sitdown with the founder of Alchemy
Wealth Management and author ofyour Fiscal Physical, Ryan
Nelson.
Tune in to gain valuableinsights and practical tips as
we simplify complex financialconcepts into digestible lessons
(00:22):
.
From budgeting to retirementplanning, this podcast is your
go-to resource for masteringfinancial literacy.
Aaron Hoisington (00:33):
Welcome everybody to this week's episode
of the Fiscal Physical Podcast.
I am joined by the publishedauthor of your Fiscal Physical
Seven Keys to BecomingFinancially Fit.
Find that book on Amazon, mrRyan Nelson.
Ryan, how are you today?
I'm doing really well.
How are you doing?
I'm doing pretty solid, my manPretty solid.
Thankful.
(00:54):
Another day, another week aboveground Can't go wrong there.
How are book sales, by the way?
Ryan Nelson (01:01):
I haven't checked, I'm sure they're good.
Aaron Hoisington (01:03):
I'm sure they're through the roof.
I'm sure it's sold out, if I'mnot mistaken there.
But shameless plug for thefounder of Alchemy Wealth
Management.
I actually went back and Istarted rereading your book.
Ryan Nelson (01:14):
Oh, did you yeah.
Aaron Hoisington (01:15):
Because I was like it's been a while I pick
out passages to think about ofthis podcast, but just the way
you can break things down, man,it's cool.
Obviously, there's a lot offinancial jargon and stuff.
That is a little bit.
It has to be confusing, becausethat's what it is, but the way
that you can use metaphors andthese certain things to relate
(01:36):
it to people, it's really cool.
Ryan Nelson (01:38):
Really cool, Awesome Well.
Aaron Hoisington (01:39):
I'm glad you're enjoying it again.
Yeah, absolutely.
But today we're going to talkabout a topic I don't think was
covered in your book, if it wastotally missed it.
We're going to talk abouttariffs today.
So if you tuned in, last weekwe talked about inflation.
Tariffs is another kind of hottopic.
If you say a word that I didn'treally know what it meant Maybe
still don't really know exactlywhat it meant until the last
(02:02):
election cycle really came up,it got kind of jammed down my
throat.
So I'm hoping this podcast youcan kind of break this down for
the listeners, ryan, and kind oftalk about what tariffs are,
what they aren't, and kind ofhow they affect all the parties
involved.
Ryan Nelson (02:15):
Yeah, let's do it.
So tariffs are an interestingthing.
It's kind of funny, I think,that they've almost become
politicized.
Yes, yeah, definitely, like inthat last election, and it
almost feels like now onepolitical party likes tariffs,
one political party doesn't liketariffs, and it's like yeah,
it's an interesting thing andI'll tell you, I mean, my
(02:36):
personal take on it isn't veryexciting.
But I just honestly believetariffs are not inherently good
and tariffs are not inherentlybad.
Tariffs are just an economictool and they both have both
positive and negativerepercussions and there's
nothing.
Yeah, I just don't.
I think they've been a littlebit blown out of proportion and
(02:58):
again, I don't think they aregood, I don't think they are bad
, they are just a tool.
That has both pros and cons,like most things in life.
And so what is a tariff?
A tariff is a tax on importedor exported goods.
So a tariff is a tax onimported or exported goods,
right.
And so it's a way you can thinkof the tariffs as a way for the
(03:20):
government to regulate foreigntrade, right.
And typically it's used in away to try to protect domestic,
so basically in our country'sindustries.
So one thing I've heard is somepeople will say that it's a tax
to the consumer.
(03:41):
I get what they're saying.
That's not technically accurate.
It's not a tax to the consumer,it's a tax on the consumer.
Sure, I get what they're saying.
That's not technically accurate.
It's not a tax to the consumer,it's a tax on the import, which
is not the same thing.
I think sometimes people willtry to oversimplify these things
and to prove a point, and Iunderstand where they're going
with that, but again, it's nottechnically accurate and I think
(04:01):
it can paint the wrong picture.
And so, again, I would argue, Iwould argue like let's, if we're
, if we're going to talk abouttariffs, let's talk about them
the right way.
It's, it's a tax on imports,it's not a tax on the consumer,
it's a tax on imports.
Now, what is the ultimateimpact of a tax on imports?
It could trickle down, increasethe consumer's cost, right?
(04:22):
So it could increase inflation.
We talked about inflation lastweek.
So there could be someimplications to the consumer,
that's for sure, but it's not atax on or to the consumer.
It's a tax on the import, whichis maybe a small nuanced
difference, but to me, I think,is important.
Aaron Hoisington (04:39):
Oh, I think that's a huge difference, just
in general, because you can, ifit's a tax on the import
specifically, then that company.
That's a huge difference, justin general, because you can, if
it's a tax on the importspecifically, then that company
that's maybe importing that,then they have maybe the choice
to.
Then where do we put?
Do we eat this ourselves?
Do we pass this on to theconsumer?
But it's not directly like, hey, cool, if a tariff gets
implemented.
It's not like okay, you are nowbeing taxed.
(05:01):
More specifically, Yep.
Ryan Nelson (05:07):
So the way to think about this is the company
buying the goods pays the tariff, right?
So if country A and country Bboth have equal tariffs on each
implemented and it's a 20%tariff and they're buying a good
that costs 100 bucks, then ifI'm living country A and I want
to buy a good from country B andagain that tariff is 20%, I
(05:30):
would buy the $100 good and Iwould pay a 20% tariff to that
government, and vice versa.
And so let's just walk throughan example.
So let's pretend I'm a shirtsalesman, so I'm buying shirts
and maybe I'm selling theseshirts for 15 bucks, right?
(05:54):
So I got to go out and I got tofind shirts to buy so that I
can sell them for 15 bucks,right?
And so I go look and maybe Ifind some shirts overseas that
are 10 bucks, and so I say okay,perfect, I'm going to buy these
shirts overseas for 10 bucksand then I'm going to sell them
here for 15 bucks, right?
That's like a a pretty, apretty common business model
right um, you could.
(06:14):
you could substitute shirts forlots of different things, um,
but so I'm in the business ofshirts.
I buy them for 10 bucks, I sellthem for 15 bucks.
I got a good little businessgoing on here, um, and maybe, as
I was doing my due diligence tofind where to source my shirts,
I I noticed there were somecompanies here in the United
States that made them, for theywould sell them to me for $11.
(06:35):
But I'm like I can get themoverseas for $10.
I'm not going to pay $11.
Right, you know, that's juststraight eating into my margins.
If I buy them for $11, sellthem for $15, I only make $4 a
shirt versus $5 a shirt.
And so then, all of a sudden,let's pretend a tariff gets
implemented and we'll say it's a20% tariff on these shirts,
right, and you'll hear peopletalk about these retaliatory
(06:59):
tariffs.
Aaron Hoisington (06:59):
Right, yeah, definitely.
Ryan Nelson (07:00):
And so what that typically means is if one
country says, hey, we're goingto put a tariff on, basically,
you, so if you buy our goods,you'll pay a tariff, sometimes
the other country will say okay,fine, then if you buy our goods
, you're going to pay a tariff.
Aaron Hoisington (07:13):
You're right and so it doesn't seem, you know
.
Ryan Nelson (07:19):
I don't know.
In my small experience withtariffs, it seems like it kind
of common.
It almost seems like there'ssometimes these like handshakes
deals where it's like thecountries either neither of them
have a tariff or they both havea tariff.
You know, it's like a.
If we can work this out like,let's just eliminate the tariffs
, make trade between ourcountries easier, um or no,
we'll have tariffs then, um, butuh, either way.
So now, let's say, a tariffgets implemented, so I'm looking
(07:41):
to buy these shirts for 10bucks.
And so now, now I'm buyingthese shirts for 10 bucks, but I
gotta pay a 20 or two dollartariff, so now it costs me 12
bucks effectively to securethese shirts.
I can10, but I got to pay a 20%or $2 tariff, so now it costs
me $12 effectively to securethese shirts.
I can still sell them for my $15, but now I have a decision.
I was making $5 per shirtbefore.
Should I continue to sell themfor $15 and now only make $3 a
(08:03):
shirt?
Or should I sell them for $17,then I'll still make $5 a shirt,
right?
Or maybe I sell them for $16and now I make $4 a shirt, and
you can see how me, as thebusiness owner.
None of those three solutionsare necessarily better or worse.
I got to figure out what makessense for my business.
If I increase my shirts and Istart selling them for $17,
(08:25):
maybe nobody will buy them.
So it's like well, I got to keepthem at $15 and just I make $3
profit.
My profit is smaller, but if Iincrease the price, people are
going to stop buying my shirts.
That's a potential risk, right?
Or I say, nah, people are goingto want to buy my shirt, so I
increase the price to 17 bucks,I still make the $5.
My revenue is exactly the same,or my profits exactly the same.
(08:45):
But now the clients.
You can see in this case nowthe burden to the client.
It costs them $17, right.
So that's why some people willsay again, like we mentioned
earlier, it's a tax to theconsumer.
If I buy that shirt for $10, Ipay a $2 tariff, so I'm paying a
total of $12.
I still want $5 profit.
I charge the consumer $17.
Now you can kind of feel like,okay, the consumer says, hey,
(09:06):
what's the deal here?
I'm the one paying more moneyright.
But again it's important torealize that tax wasn't actually
on that consumer.
The tax was on me, the businessowner.
Me, the business owner, I madethe best decision that I thought
possible to run my business.
And supply and demand we talkedabout that before that will
dictate what these pricesactually can be.
(09:27):
So again, if I try to raise myprices too much and there's no
now demand for a $17 shirtnobody's going to buy them I'm
forced to drop my prices down tomaybe $16.
Sure when maybe now me and theconsumer both share the burden
and so I only make $4 profit.
The consumer pays $1 more, sothe consumer's paying $1 more,
I'm making $1 less.
We're splitting the difference,and so the reality is, when
(09:47):
tariffs get implemented, allthree of these scenarios place
right.
Some companies are able to passthe entire burden onto the
client, some companies eat theentire burden themselves and
some companies share the burdenwith the client.
So that's one thing to thinkabout.
It's not just a flat, it's allbeing applied to the client.
Every business and everyindustry is going to be a little
different.
But the other thing to thinkabout you may have remembered I
(10:08):
said earlier there were shirtsavailable for sale in the United
States that only cost me $11 tobuy.
So one now potential thingcould do is okay, these tariffs
got implemented, it cost me $10,but now I'm really paying $12,
when you include the $2 tariff,to get these shirts.
Now it might make sense for meto reevaluate where I'm sourcing
my shirts from and I might sayokay, it used to make sense for
(10:31):
me to source these shirtsoverseas.
Now maybe it makes sense for meto source these shirts in the
US, and so now I'm going tostart buying them for $11,
because overall, $11 is lessthan $12, right, and so the
theory behind a tariff is thatit helps.
Again, I mentioned that itquote unquote protects domestic
industries.
So what it does is itincentivizes me to now buy from
(10:53):
the US company, right, whichputs more dollars into US GDP.
It creates maybe more jobs forUS employees, who could then
maybe buy more shirts, right, orpay more money into our tax
system, right, and so, again, Idon't think there is any right
or wrong here.
You can see how, as we kind ofexplain in details how this
whole thing plays out, there aredifferent pros and there are
(11:17):
different cons, and every tariffin every industry is going to
kind of affect the consumerslightly differently.
And so, yeah, it's something tothink about.
Again, I don't think they aregood, I don't think they are bad
.
It is a way for the governmentto generate revenue.
The hopes would be like theselling point of them would be
(11:38):
that other citizens, likebasically other countries or
citizens of other countries,would be paying into, sort of
effectively, this tax right.
The catch is, if we implementtariffs on them, they're
probably implementing tariffs onus, and then we're also
probably paying some taxes backinto them, right?
So one thing to consider mightbe is your country a net
importer or net exporter?
(11:58):
But then again, how it kind ofcycles down is you know?
Will it create more jobs in theUS?
The answer could be yes.
It could be no.
It's a very, very complicatedquestion.
Yeah, definitely.
But you can definitelyunderstand the logic about how
that could take place?
Aaron Hoisington (12:13):
Absolutely no, and I think that's a great
breakdown of, you know, stayingrelatively neutral on this,
because it depends on thecompany, depends on the amount
of the tariff, it depends on somany different factors.
Oh, yeah, yeah To just sayblanket that tariffs are bad or
tariffs are good.
You can't really say that.
Plus, I would also like topoint out for myself one who's
never really looked into tariffsbefore these aren't a new thing
(12:37):
.
It's not like it's a new idea.
I feel like it gets thrownaround like, oh my gosh, I
didn't hear the word tariff in2020 or whatever, at least not
regularly, but it's been a thingfor a very, very long time.
So I think that you can kind ofsee at least that breaks it
down of how the differentoptions that are available for
(12:58):
these tariffs and, like you said, like the retaliatory tariffs,
are what kind of get.
Well, if you're going to dothis, we're going to do this,
we're going to do this, and it'sjust like all right, are we
just?
maybe we take a step back andkind of figure out what's best
for everybody versus getting ina pissing contest in certain
cases.
Ryan Nelson (13:14):
Yeah, it is funny, but yeah, at the end of the day,
again it's just a tool for thegovernment to regulate foreign
trade and again it's a tax onimported goods effectively.
Aaron Hoisington (13:24):
Love it.
Awesome, as always.
Appreciate the breakdown there,ryan, we're going to go ahead
and pause and we'll be back onthe other side here.
Everybody hang tight.
Speaker 1 (13:32):
And now to put the personal in personal finance.
Aaron Hoisington (13:39):
Welcome back everybody to this side of the
Fiscal Physical Podcast.
We're into the personal sectionhere, and, Ryan, I'm going to
ask you what's a TV show thatyou could or have binge watched
over and over again, sosomething that really is near
and dear to your heart or youjust find really great, Like I
mean, I don't know about you, Idon't have a ton of time on my
hands to binge watch, but maybeI did in the past or, if I get
(14:01):
the opportunity, I'm like I'mgoing to fire this up, Like I'm
curious to see your thoughts onthat.
Ryan Nelson (14:06):
Yeah Well, I'll tell you, I don't think I've
ever watched a single TV showtwice Really no.
So I don't know that.
I guess the answer is none.
Aaron Hoisington (14:16):
Sure, but there are very few TV shows.
Ryan Nelson (14:18):
I've even watched every episode of.
Yeah, but I think some of theones Sunny in Philadelphia
Actually I haven't even, I thinkthey still make.
Aaron Hoisington (14:26):
Yeah, they're still cranking some out.
I haven't even seen everyepisode of that, then, but I saw
a lot of episodes, right.
Ryan Nelson (14:31):
Um, prison break, I guess same thing.
I saw every episode of maybethe first two seasons, but then
I think they came out with moreepisodes, seasons.
Um, arrested development samething, actually, I know they
came out with new seasons too.
Prison Break, I just liked backin the day.
(14:51):
But my single favorite show, Ithink of all time, was Ted Lasso
, and I remember so when I wastraining for one of my Ironmans.
You have to.
Obviously the training is long.
You'll have to do like a sixhour bike ride some days and
stuff, and so some of the timeit's kind of a.
It's dangerous to ride outsideand be.
Sometimes, depending on theweather, it's just not really
(15:13):
feasible.
So you've got to do.
Sometimes you'll have to do likea six hour training ride in on
a stationary, but yeah, exactlyon a stationary bike inside and,
uh, so you know I have the wayI have my bike set up is I have
a TV in front of it and so, um,I was able to binge watch Ted
Lasso while on my bike here nottoo long ago and I thought that
was probably my favorite show ofall time.
(15:34):
It's just like a lightheartedfunny, like feel good comedy.
Aaron Hoisington (15:38):
Relatable in certain things too, and you're
just like oh, a lot of themes.
Ryan Nelson (15:41):
You're just like kind of translating certain,
yeah, so that's one that, in theback of my mind, I've thought,
like man, I should go back andwatch that again Again.
I should go back and watch thatagain Again.
I never have, but I guessthat'd be come closest to
answering your question.
Aaron Hoisington (15:54):
Yeah, and it's funny because I'm very similar
with movies.
I rarely watch the same movietwice, unless it's been multiple
years, a very long time.
Maybe I've forgotten about itand been like, oh, that's a
great movie.
My favorite movie ever isRemember the Titans, and I
probably haven't seen it in 15years maybe, but like in my mind
, that's my favorite movie.
And so I'm like if I watched itnow, I'm like I don't want to
(16:17):
ruin this.
This is my favorite movie in mymind, but when it comes to
shows very kind of similar OneArrested Development is so funny
.
When they came out with the newepisodes, I went and rewatched
it back again.
Yeah and my gosh, that show'sfunny, that's awesome.
Ryan Nelson (16:33):
Yeah.
Aaron Hoisington (16:34):
So I would say that's one of the ones that
I've binge-watched before, andthen I've always liked the show
Friends as well, too.
We used to have all the seasonsgrowing up and I could still
fire it up and laugh at anepisode or something like that.
So those would probably be mytwo.
But I'm similar Like I justdon't have the time to really
sit down and binge watch thingslike train for an Ironman.
Ryan Nelson (16:53):
I should look into that yeah.
Aaron Hoisington (17:00):
Just get a stationary bike minimum.
So I think that there'sopportunity there.
But, um, yeah, I love Ted Lassoas well too.
There's, there's some, there'ssome bangers out there, for sure
that I'm just like I probablymissed a lot of shows too, if
I'm being honest.
Absolutely Like every once in awhile people are like, oh, you
should watch this.
And I'm just like, okay, maybeI'll put it on my list that I
had made.
But anyway, appreciate everybodyfor tuning in.
As always, these episodes dropevery Tuesday morning, so please
(17:23):
set your calendar, set yourwatches to check this out as
soon as it drops.
You're going to want to seethese ones or listen to these
ones, and, ryan, I'll let youplay us out here.
Ryan Nelson (17:33):
As always, stay the course.
Speaker 1 (17:37):
Thank you for joining us for the Fiscal Physical
Podcast.
Until next time, happylistening and, as always, stay
the course.
If you have a question or topicsuggestions, please email us at
podcast at alchemywealthcom.
If you enjoyed today'sdiscussion, subscribe to the
podcast to ensure you never missan episode and consider leaving
(17:59):
us a rating and review on yourfavorite platform.
This helps other listeners likeyou find the show.
For more resources, you canvisit Alchemy Wealth
Management's website atwwwalchemywealthcom or find your
fiscal physical the book onAmazon.
We'd be remiss if we didn'tmention that personal finance is
just that personal.
(18:19):
Please don't take anything wesay as advice.
The preceding content is forinformational and entertainment
purposes only.
It's not an offer or asolicitation, nor should it be
construed or relied upon for tax, legal or investment advice.
It doesn't consider yourpersonal financial situation or
objectives and may not besuitable for you.
Welcome to the Fiscal Physical Podcast.
Join us each week as we sitdown with the founder of Alchemy
Wealth Management and author ofyour Fiscal Physical, Ryan
Nelson.
Tune in to gain valuableinsights and practical tips as
we simplify complex financialconcepts into digestible lessons
(00:22):
.
From budgeting to retirementplanning, this podcast is your
go-to resource for masteringfinancial literacy.
Aaron Hoisington (00:33):
Welcome everybody to this week's episode
of the Fiscal Physical Podcast.
I am joined by the publishedauthor of your Fiscal Physical
Seven Keys to BecomingFinancially Fit.
Find that book on Amazon, mrRyan Nelson.
Ryan, how are you today?
I'm doing really well.
How are you doing?
I'm doing pretty solid, my manPretty solid.
Thankful.
(00:54):
Another day, another week aboveground Can't go wrong there.
How are book sales, by the way?
Ryan Nelson (01:01):
I haven't checked, I'm sure they're good.
Aaron Hoisington (01:03):
I'm sure they're through the roof.
I'm sure it's sold out, if I'mnot mistaken there.
But shameless plug for thefounder of Alchemy Wealth
Management.
I actually went back and Istarted rereading your book.
Ryan Nelson (01:14):
Oh, did you yeah.
Aaron Hoisington (01:15):
Because I was like it's been a while I pick
out passages to think about ofthis podcast, but just the way
you can break things down, man,it's cool.
Obviously, there's a lot offinancial jargon and stuff.
That is a little bit.
It has to be confusing, becausethat's what it is, but the way
that you can use metaphors andthese certain things to relate
(01:36):
it to people, it's really cool.
Ryan Nelson (01:38):
Really cool, Awesome Well.
Aaron Hoisington (01:39):
I'm glad you're enjoying it again.
Yeah, absolutely.
But today we're going to talkabout a topic I don't think was
covered in your book, if it wastotally missed it.
We're going to talk abouttariffs today.
So if you tuned in, last weekwe talked about inflation.
Tariffs is another kind of hottopic.
If you say a word that I didn'treally know what it meant Maybe
still don't really know exactlywhat it meant until the last
(02:02):
election cycle really came up,it got kind of jammed down my
throat.
So I'm hoping this podcast youcan kind of break this down for
the listeners, ryan, and kind oftalk about what tariffs are,
what they aren't, and kind ofhow they affect all the parties
involved.
Ryan Nelson (02:15):
Yeah, let's do it.
So tariffs are an interestingthing.
It's kind of funny, I think,that they've almost become
politicized.
Yes, yeah, definitely, like inthat last election, and it
almost feels like now onepolitical party likes tariffs,
one political party doesn't liketariffs, and it's like yeah,
it's an interesting thing andI'll tell you, I mean, my
(02:36):
personal take on it isn't veryexciting.
But I just honestly believetariffs are not inherently good
and tariffs are not inherentlybad.
Tariffs are just an economictool and they both have both
positive and negativerepercussions and there's
nothing.
Yeah, I just don't.
I think they've been a littlebit blown out of proportion and
(02:58):
again, I don't think they aregood, I don't think they are bad
, they are just a tool.
That has both pros and cons,like most things in life.
And so what is a tariff?
A tariff is a tax on importedor exported goods.
So a tariff is a tax onimported or exported goods,
right.
And so it's a way you can thinkof the tariffs as a way for the
(03:20):
government to regulate foreigntrade, right.
And typically it's used in away to try to protect domestic,
so basically in our country'sindustries.
So one thing I've heard is somepeople will say that it's a tax
to the consumer.
(03:41):
I get what they're saying.
That's not technically accurate.
It's not a tax to the consumer,it's a tax on the consumer.
Sure, I get what they're saying.
That's not technically accurate.
It's not a tax to the consumer,it's a tax on the import, which
is not the same thing.
I think sometimes people willtry to oversimplify these things
and to prove a point, and Iunderstand where they're going
with that, but again, it's nottechnically accurate and I think
(04:01):
it can paint the wrong picture.
And so, again, I would argue, Iwould argue like let's, if we're
, if we're going to talk abouttariffs, let's talk about them
the right way.
It's, it's a tax on imports,it's not a tax on the consumer,
it's a tax on imports.
Now, what is the ultimateimpact of a tax on imports?
It could trickle down, increasethe consumer's cost, right?
(04:22):
So it could increase inflation.
We talked about inflation lastweek.
So there could be someimplications to the consumer,
that's for sure, but it's not atax on or to the consumer.
It's a tax on the import, whichis maybe a small nuanced
difference, but to me, I think,is important.
Aaron Hoisington (04:39):
Oh, I think that's a huge difference, just
in general, because you can, ifit's a tax on the import
specifically, then that company.
That's a huge difference, justin general, because you can, if
it's a tax on the importspecifically, then that company
that's maybe importing that,then they have maybe the choice
to.
Then where do we put?
Do we eat this ourselves?
Do we pass this on to theconsumer?
But it's not directly like, hey, cool, if a tariff gets
implemented.
It's not like okay, you are nowbeing taxed.
(05:01):
More specifically, Yep.
Ryan Nelson (05:07):
So the way to think about this is the company
buying the goods pays the tariff, right?
So if country A and country Bboth have equal tariffs on each
implemented and it's a 20%tariff and they're buying a good
that costs 100 bucks, then ifI'm living country A and I want
to buy a good from country B andagain that tariff is 20%, I
(05:30):
would buy the $100 good and Iwould pay a 20% tariff to that
government, and vice versa.
And so let's just walk throughan example.
So let's pretend I'm a shirtsalesman, so I'm buying shirts
and maybe I'm selling theseshirts for 15 bucks, right?
(05:54):
So I got to go out and I got tofind shirts to buy so that I
can sell them for 15 bucks,right?
And so I go look and maybe Ifind some shirts overseas that
are 10 bucks, and so I say okay,perfect, I'm going to buy these
shirts overseas for 10 bucksand then I'm going to sell them
here for 15 bucks, right?
That's like a a pretty, apretty common business model
right um, you could.
(06:14):
you could substitute shirts forlots of different things, um,
but so I'm in the business ofshirts.
I buy them for 10 bucks, I sellthem for 15 bucks.
I got a good little businessgoing on here, um, and maybe, as
I was doing my due diligence tofind where to source my shirts,
I I noticed there were somecompanies here in the United
States that made them, for theywould sell them to me for $11.
(06:35):
But I'm like I can get themoverseas for $10.
I'm not going to pay $11.
Right, you know, that's juststraight eating into my margins.
If I buy them for $11, sellthem for $15, I only make $4 a
shirt versus $5 a shirt.
And so then, all of a sudden,let's pretend a tariff gets
implemented and we'll say it's a20% tariff on these shirts,
right, and you'll hear peopletalk about these retaliatory
(06:59):
tariffs.
Aaron Hoisington (06:59):
Right, yeah, definitely.
Ryan Nelson (07:00):
And so what that typically means is if one
country says, hey, we're goingto put a tariff on, basically,
you, so if you buy our goods,you'll pay a tariff, sometimes
the other country will say okay,fine, then if you buy our goods
, you're going to pay a tariff.
Aaron Hoisington (07:13):
You're right and so it doesn't seem, you know
.
Ryan Nelson (07:19):
I don't know.
In my small experience withtariffs, it seems like it kind
of common.
It almost seems like there'ssometimes these like handshakes
deals where it's like thecountries either neither of them
have a tariff or they both havea tariff.
You know, it's like a.
If we can work this out like,let's just eliminate the tariffs
, make trade between ourcountries easier, um or no,
we'll have tariffs then, um, butuh, either way.
So now, let's say, a tariffgets implemented, so I'm looking
(07:41):
to buy these shirts for 10bucks.
And so now, now I'm buyingthese shirts for 10 bucks, but I
gotta pay a 20 or two dollartariff, so now it costs me 12
bucks effectively to securethese shirts.
I can10, but I got to pay a 20%or $2 tariff, so now it costs
me $12 effectively to securethese shirts.
I can still sell them for my $15, but now I have a decision.
I was making $5 per shirtbefore.
Should I continue to sell themfor $15 and now only make $3 a
(08:03):
shirt?
Or should I sell them for $17,then I'll still make $5 a shirt,
right?
Or maybe I sell them for $16and now I make $4 a shirt, and
you can see how me, as thebusiness owner.
None of those three solutionsare necessarily better or worse.
I got to figure out what makessense for my business.
If I increase my shirts and Istart selling them for $17,
(08:25):
maybe nobody will buy them.
So it's like well, I got to keepthem at $15 and just I make $3
profit.
My profit is smaller, but if Iincrease the price, people are
going to stop buying my shirts.
That's a potential risk, right?
Or I say, nah, people are goingto want to buy my shirt, so I
increase the price to 17 bucks,I still make the $5.
My revenue is exactly the same,or my profits exactly the same.
(08:45):
But now the clients.
You can see in this case nowthe burden to the client.
It costs them $17, right.
So that's why some people willsay again, like we mentioned
earlier, it's a tax to theconsumer.
If I buy that shirt for $10, Ipay a $2 tariff, so I'm paying a
total of $12.
I still want $5 profit.
I charge the consumer $17.
Now you can kind of feel like,okay, the consumer says, hey,
(09:06):
what's the deal here?
I'm the one paying more moneyright.
But again it's important torealize that tax wasn't actually
on that consumer.
The tax was on me, the businessowner.
Me, the business owner, I madethe best decision that I thought
possible to run my business.
And supply and demand we talkedabout that before that will
dictate what these pricesactually can be.
(09:27):
So again, if I try to raise myprices too much and there's no
now demand for a $17 shirtnobody's going to buy them I'm
forced to drop my prices down tomaybe $16.
Sure when maybe now me and theconsumer both share the burden
and so I only make $4 profit.
The consumer pays $1 more, sothe consumer's paying $1 more,
I'm making $1 less.
We're splitting the difference,and so the reality is, when
(09:47):
tariffs get implemented, allthree of these scenarios place
right.
Some companies are able to passthe entire burden onto the
client, some companies eat theentire burden themselves and
some companies share the burdenwith the client.
So that's one thing to thinkabout.
It's not just a flat, it's allbeing applied to the client.
Every business and everyindustry is going to be a little
different.
But the other thing to thinkabout you may have remembered I
(10:08):
said earlier there were shirtsavailable for sale in the United
States that only cost me $11 tobuy.
So one now potential thingcould do is okay, these tariffs
got implemented, it cost me $10,but now I'm really paying $12,
when you include the $2 tariff,to get these shirts.
Now it might make sense for meto reevaluate where I'm sourcing
my shirts from and I might sayokay, it used to make sense for
(10:31):
me to source these shirtsoverseas.
Now maybe it makes sense for meto source these shirts in the
US, and so now I'm going tostart buying them for $11,
because overall, $11 is lessthan $12, right, and so the
theory behind a tariff is thatit helps.
Again, I mentioned that itquote unquote protects domestic
industries.
So what it does is itincentivizes me to now buy from
(10:53):
the US company, right, whichputs more dollars into US GDP.
It creates maybe more jobs forUS employees, who could then
maybe buy more shirts, right, orpay more money into our tax
system, right, and so, again, Idon't think there is any right
or wrong here.
You can see how, as we kind ofexplain in details how this
whole thing plays out, there aredifferent pros and there are
(11:17):
different cons, and every tariffin every industry is going to
kind of affect the consumerslightly differently.
And so, yeah, it's something tothink about.
Again, I don't think they aregood, I don't think they are bad
.
It is a way for the governmentto generate revenue.
The hopes would be like theselling point of them would be
(11:38):
that other citizens, likebasically other countries or
citizens of other countries,would be paying into, sort of
effectively, this tax right.
The catch is, if we implementtariffs on them, they're
probably implementing tariffs onus, and then we're also
probably paying some taxes backinto them, right?
So one thing to consider mightbe is your country a net
importer or net exporter?
(11:58):
But then again, how it kind ofcycles down is you know?
Will it create more jobs in theUS?
The answer could be yes.
It could be no.
It's a very, very complicatedquestion.
Yeah, definitely.
But you can definitelyunderstand the logic about how
that could take place?
Aaron Hoisington (12:13):
Absolutely no, and I think that's a great
breakdown of, you know, stayingrelatively neutral on this,
because it depends on thecompany, depends on the amount
of the tariff, it depends on somany different factors.
Oh, yeah, yeah To just sayblanket that tariffs are bad or
tariffs are good.
You can't really say that.
Plus, I would also like topoint out for myself one who's
never really looked into tariffsbefore these aren't a new thing
(12:37):
.
It's not like it's a new idea.
I feel like it gets thrownaround like, oh my gosh, I
didn't hear the word tariff in2020 or whatever, at least not
regularly, but it's been a thingfor a very, very long time.
So I think that you can kind ofsee at least that breaks it
down of how the differentoptions that are available for
(12:58):
these tariffs and, like you said, like the retaliatory tariffs,
are what kind of get.
Well, if you're going to dothis, we're going to do this,
we're going to do this, and it'sjust like all right, are we
just?
maybe we take a step back andkind of figure out what's best
for everybody versus getting ina pissing contest in certain
cases.
Ryan Nelson (13:14):
Yeah, it is funny, but yeah, at the end of the day,
again it's just a tool for thegovernment to regulate foreign
trade and again it's a tax onimported goods effectively.
Aaron Hoisington (13:24):
Love it.
Awesome, as always.
Appreciate the breakdown there,ryan, we're going to go ahead
and pause and we'll be back onthe other side here.
Everybody hang tight.
Speaker 1 (13:32):
And now to put the personal in personal finance.
Aaron Hoisington (13:39):
Welcome back everybody to this side of the
Fiscal Physical Podcast.
We're into the personal sectionhere, and, Ryan, I'm going to
ask you what's a TV show thatyou could or have binge watched
over and over again, sosomething that really is near
and dear to your heart or youjust find really great, Like I
mean, I don't know about you, Idon't have a ton of time on my
hands to binge watch, but maybeI did in the past or, if I get
(14:01):
the opportunity, I'm like I'mgoing to fire this up, Like I'm
curious to see your thoughts onthat.
Ryan Nelson (14:06):
Yeah Well, I'll tell you, I don't think I've
ever watched a single TV showtwice Really no.
So I don't know that.
I guess the answer is none.
Aaron Hoisington (14:16):
Sure, but there are very few TV shows.
Ryan Nelson (14:18):
I've even watched every episode of.
Yeah, but I think some of theones Sunny in Philadelphia
Actually I haven't even, I thinkthey still make.
Aaron Hoisington (14:26):
Yeah, they're still cranking some out.
I haven't even seen everyepisode of that, then, but I saw
a lot of episodes, right.
Ryan Nelson (14:31):
Um, prison break, I guess same thing.
I saw every episode of maybethe first two seasons, but then
I think they came out with moreepisodes, seasons.
Um, arrested development samething, actually, I know they
came out with new seasons too.
Prison Break, I just liked backin the day.
(14:51):
But my single favorite show, Ithink of all time, was Ted Lasso
, and I remember so when I wastraining for one of my Ironmans.
You have to.
Obviously the training is long.
You'll have to do like a sixhour bike ride some days and
stuff, and so some of the timeit's kind of a.
It's dangerous to ride outsideand be.
Sometimes, depending on theweather, it's just not really
(15:13):
feasible.
So you've got to do.
Sometimes you'll have to do likea six hour training ride in on
a stationary, but yeah, exactlyon a stationary bike inside and,
uh, so you know I have the wayI have my bike set up is I have
a TV in front of it and so, um,I was able to binge watch Ted
Lasso while on my bike here nottoo long ago and I thought that
was probably my favorite show ofall time.
(15:34):
It's just like a lightheartedfunny, like feel good comedy.
Aaron Hoisington (15:38):
Relatable in certain things too, and you're
just like oh, a lot of themes.
Ryan Nelson (15:41):
You're just like kind of translating certain,
yeah, so that's one that, in theback of my mind, I've thought,
like man, I should go back andwatch that again Again.
I should go back and watch thatagain Again.
I never have, but I guessthat'd be come closest to
answering your question.
Aaron Hoisington (15:54):
Yeah, and it's funny because I'm very similar
with movies.
I rarely watch the same movietwice, unless it's been multiple
years, a very long time.
Maybe I've forgotten about itand been like, oh, that's a
great movie.
My favorite movie ever isRemember the Titans, and I
probably haven't seen it in 15years maybe, but like in my mind
, that's my favorite movie.
And so I'm like if I watched itnow, I'm like I don't want to
(16:17):
ruin this.
This is my favorite movie in mymind, but when it comes to
shows very kind of similar OneArrested Development is so funny
.
When they came out with the newepisodes, I went and rewatched
it back again.
Yeah and my gosh, that show'sfunny, that's awesome.
Ryan Nelson (16:33):
Yeah.
Aaron Hoisington (16:34):
So I would say that's one of the ones that
I've binge-watched before, andthen I've always liked the show
Friends as well, too.
We used to have all the seasonsgrowing up and I could still
fire it up and laugh at anepisode or something like that.
So those would probably be mytwo.
But I'm similar Like I justdon't have the time to really
sit down and binge watch thingslike train for an Ironman.
Ryan Nelson (16:53):
I should look into that yeah.
Aaron Hoisington (17:00):
Just get a stationary bike minimum.
So I think that there'sopportunity there.
But, um, yeah, I love Ted Lassoas well too.
There's, there's some, there'ssome bangers out there, for sure
that I'm just like I probablymissed a lot of shows too, if
I'm being honest.
Absolutely Like every once in awhile people are like, oh, you
should watch this.
And I'm just like, okay, maybeI'll put it on my list that I
had made.
But anyway, appreciate everybodyfor tuning in.
As always, these episodes dropevery Tuesday morning, so please
(17:23):
set your calendar, set yourwatches to check this out as
soon as it drops.
You're going to want to seethese ones or listen to these
ones, and, ryan, I'll let youplay us out here.
Ryan Nelson (17:33):
As always, stay the course.
Speaker 1 (17:37):
Thank you for joining us for the Fiscal Physical
Podcast.
Until next time, happylistening and, as always, stay
the course.
If you have a question or topicsuggestions, please email us at
podcast at alchemywealthcom.
If you enjoyed today'sdiscussion, subscribe to the
podcast to ensure you never missan episode and consider leaving
(17:59):
us a rating and review on yourfavorite platform.
This helps other listeners likeyou find the show.
For more resources, you canvisit Alchemy Wealth
Management's website atwwwalchemywealthcom or find your
fiscal physical the book onAmazon.
We'd be remiss if we didn'tmention that personal finance is
just that personal.
(18:19):
Please don't take anything wesay as advice.
The preceding content is forinformational and entertainment
purposes only.
It's not an offer or asolicitation, nor should it be
construed or relied upon for tax, legal or investment advice.
It doesn't consider yourpersonal financial situation or
objectives and may not besuitable for you.
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