Episode Transcript
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Speaker 1 (00:05):
Tonight's stock Market predictions for twenty twenty five?
Speaker 2 (00:09):
What should you do with your foural one k?
Speaker 1 (00:11):
And the dues indulce of gifting money and of course
we've got much more. You're listening to Simply Money, presented
by all Worth Financial Imami Wagner along with Steve Ruby.
Speaker 2 (00:20):
This is one of this This show is like a
gift to myself.
Speaker 1 (00:23):
It is like one of my favorite things to talk
about for anyone who spends any time in the financial.
Speaker 2 (00:30):
Headlines as we do. We have to, that's what we
do for the show.
Speaker 1 (00:34):
You know that there are all kinds of people who
get paid, by the way insane paychecks to make some
major predictions on what's going to happen this year with
the economy, with the stock market, with your foural one
K and so we are now looking ahead to twenty
twenty five and some of those predictions.
Speaker 3 (00:53):
Yeah, I mean this is a lot of fun for
me because that predictions, what are they actually worth about? Nothing?
Speaker 2 (00:59):
Oh no? Actually not?
Speaker 3 (01:00):
Yeah, I mean, well it depends on if somebody's selling something.
Actually we'll get to what we're actually talking about here
in a minute, but out.
Speaker 2 (01:07):
Let's start with the predictions.
Speaker 3 (01:08):
Well, I have to explain. A client sent me an
email just yesterday and it was this article titled something
along the lines of twenty twenty five four oh one
k and IRA savings are for losers are for losers,
and it starts with this little disclaimer, something along the
lines of, please note that we put our client's best
(01:30):
interests ahead of everything, but we might get kicked back
when people click on links in those articles. And it
was trying to sell gold, iras and crypto.
Speaker 2 (01:42):
What's the angle?
Speaker 4 (01:43):
Right?
Speaker 1 (01:43):
You always have to look at these headlines through the
lens of what's the angle here?
Speaker 3 (01:47):
Yeah, so selling on fear based on prediction, so, oh yeah,
it just gets under my skin. But Oppenheimer came out
prediction making headlines. Currently Oppenheimer Asset Management chief investment strategist.
There predicts the S and P five hundred will hit
seventy one hundred in twenty twenty five.
Speaker 1 (02:05):
Great prediction. And if that happens, fantastic. As an investor,
What does this mean to me? Maybe I should put
all my chips and move them into the market. Absolutely not,
you know, And that's the thing. People make decisions based
on two emotions more than anything else. Fear, and greed,
And that's what these headlines play into. And when you
(02:25):
hear about someone making major predictions on the markets going
way up over the course of the next year, if
the little voice in the back of your head starts
to say, maybe I should move the needle right and
we've gotten we have gotten those calls from ninety two
year old say and put me one hundred percent in
the market.
Speaker 2 (02:43):
It's not where a ninety two year old probably belongs.
Speaker 3 (02:45):
Right, Yeah, exactly. And this is fueled by greed, obviously.
I've actually told some some folks that I'm a little
bit closer to, like you are literally being greedy right now. Yeah,
you are fear and greed and right emotions. And you're
asking to go one hundred percent stock when you're eighty
years old because the markets are at all time highs.
Speaker 1 (03:06):
How's that going to feel when unpredictably markets turned south
twenty percent?
Speaker 2 (03:11):
How are gonna feel about that decision?
Speaker 3 (03:13):
Exactly? So, these predictions, the thing that gets enter my
skin is that people will act on them, oftentimes against
their own best interests.
Speaker 1 (03:22):
And you know, listen, this guy who's making this prediction
about the S and P five hundred being up next
year is looking at, you know, the broadening of the
market from the market lows that we saw in October
of twenty twenty three, along with ongoing rebalancing and rotation
among sectors.
Speaker 2 (03:38):
He's throwing a bunch of big concepts out here.
Speaker 1 (03:40):
You know, these are the reasons why I think things
could go up this, who knows?
Speaker 2 (03:45):
Who knows?
Speaker 1 (03:47):
And then that's what often these people do, right, They
make a prediction, they throw a couple possible porting supporting
pieces of it. You know, evidence in there may or
may not work out. That way, you can tuck it
in the back of your head and say, interesting, you know,
we'll see what happens. But if you're making investment decisions
because of what you're reading in financial headlines, and those
(04:09):
investment decisions are not what's part of your long term
financial plan, it's a really bad path to go exactly.
Speaker 3 (04:17):
That's why we as financial planners focus on the financial plan,
because we focus on the long term. We focus on
making sure you're taking the level of risk that you
need to meet your different, sometimes competing financial priorities. So
it doesn't matter what the predictions say. You know, I well,
it's funny because I'm gonna fiow it up with my
own prediction.
Speaker 2 (04:37):
Right, here's the myronie for you.
Speaker 3 (04:39):
Yeah right, the markets will go up over the long term,
Boom done. It's as simple as that. But we will
have volatility along the path. When that volatility happens is
what's unknown. It's like walking as naked background used to say,
it's a drunk guy walking up the stairs while playing
with a yo yo.
Speaker 1 (04:55):
Yeah, and your prediction is based on historical fact. One
hundred percent of the time markets have gone down and
then rebounded to new highs, So that prediction is based
on fact. Not if seventeen different things have this confluence
at the same exact time, maybe this thing will happen,
(05:18):
which is what a lot of these predictions are based on.
You're listening to simply Money presented by all Worth Financial,
I mean you Wagner along with Steve Ruby predictions for
twenty twenty five. This is one of my favorite topics
because you're going to see them all over the place.
Speaker 2 (05:31):
Now.
Speaker 1 (05:32):
Speaking of all over the place, though, there is a
number of people kind of on the same page here,
so not only Oppenheimer Deutsche Bank right there forecasting twenty
twenty five s and P five hundred hit seven thousand,
ubsked looking at sixty four hundred, City group.
Speaker 2 (05:46):
Thinks the s and P five hundred will hit sixty
five hundred.
Speaker 1 (05:49):
Many people seem to be on the same page that
it looks like it could be a good year for
your four one.
Speaker 5 (05:54):
Kay.
Speaker 1 (05:55):
If that happens, great, great. I just want to remind
you time and time again in don't make any changes
based on those predictions.
Speaker 3 (06:03):
Well, predictions coming into twenty twenty four. So exactly what
we would have been talking about a year ago.
Speaker 2 (06:07):
One year ago was.
Speaker 3 (06:09):
Wall Street forecasting recession due to an inverted YO curve
and hedging risks against twenty twenty four. So the predictions
last year, if you would have listened to that, then
maybe you would have moved into cash, said on the sidelines,
and then missed out repeatedly hitting all time highs in
the market.
Speaker 1 (06:26):
It was in this very month one year ago that
an economist, Harry Dtt got on Fox News and made
this prediction, I think twenty twenty four is going to
be the biggest single crashier we will see in our lifetimes. Now,
if that doesn't make you want to run for the hells,
I don't know what will. And I would love to
(06:48):
know the number of people who were watching it at
that point that made a change with their investments, with
their portfolio based on that prediction, and then also if
they did how they're feeling today.
Speaker 3 (07:01):
Yeah, too many. I mean, I've explained it before, but
when I started in this industry, I started in a
four toh one K customer service role, not license. Obviously.
I didn't stay in that role too long before I
started getting some securities licenses and a couple of years
later became a certified financial planner. But the phone calls
that I would get, it was a red light on
my phone and it was people calling in constantly. I
(07:21):
saw something online and it spooked me and I need
to stop contributing to my four oh one K and
move everything to cash. And I would just say, okay, great,
you reached right place. I'm happy to help me out
with that anything else I could do for you today.
Speaker 1 (07:33):
Meanwhile, it's sucking your soul that this person's making this
decision right.
Speaker 3 (07:37):
Without a license, without security licenses. There being in a
role where I'm allowed to ask a question.
Speaker 2 (07:41):
Like why are you sure?
Speaker 3 (07:45):
Yeah, that seems like a pretty bad idea. You know,
I couldn't give any of that feedback at all. It
was just smile, grin, and you know, wait for the
next phone call. So during periods of volatility, unfortunately, we
would get a lot of those. So yeah, it's anecdotal,
but I've seen it in my own career where people
would just constantly react emotionally, and unfortunately at that time,
(08:05):
I wasn't in a position where I could stop them.
Now that I'm a fuciary financial planner, big part of
our job is protecting people from making emotional decisions that
could derail their own financial futures.
Speaker 2 (08:16):
Yeah, that they can't recover from you.
Speaker 1 (08:18):
We talked about this yesterday, but I want to bring
it up again too, because I think it falls along
these lines of you have these knee jerk reactions to headlines,
but this is how you feel about politics. You know,
I was really hoping that once this election was over,
regardless of how you felt about it, right, And in
this show, we've said this a million times. We're not red,
we're not blue, we're green. How does the person in
(08:41):
this office or Congress affect your money? That's what we're
going to talk about. But I'm still getting people in
my office who want to change their financial plans based
on now the fact.
Speaker 2 (08:53):
That Donald Trump is the president elect.
Speaker 1 (08:55):
And some people are like, yes, pro business, I'm going
all in, and there are other people who are like,
I don't like him, and so I'm going to pull
money out. And I'm constantly still having these conversations. You
can feel however you want about politics.
Speaker 2 (09:12):
And you should, and you can be very emotional about it. It
does affect your life, but it shouldn't impact your money.
Speaker 1 (09:19):
And if we have done anything through the years on
the show, I hope it is educate you on the
fact that history shows us you should not get emotional
about your money.
Speaker 3 (09:29):
Yeah, when you really break down the numbers, We've had
entire segments and shows about it, it almost doesn't matter
who's in office at the end of the day, doesn't
because they don't drive the markets the same way that
many people would think. It's actually driven by capitalism, which
is fueled by creed for greed, and corporate greed isn't
going anywhere anywhere no matter who's in the office. So's
(09:49):
if it's more pro business or if it's expanding social programs,
whatever side of the aisle. Is leading the charge. It
doesn't matter because businesses will pivot to find ways to
make money. Now, what is interesting, though, is that a
split in leadership, whether whether it's you know, President and
Congress being split, that that actually creates more gridlock, which
(10:09):
is good for the markets. If one party controls everything,
then that leads to a little bit more unpredictability, which
the markets don't particularly like. But it still doesn't matter.
They're still going to go up over the long term.
Speaker 2 (10:20):
Okay, this might be a weird thing to say, but
this just popped into my head.
Speaker 5 (10:23):
Right.
Speaker 2 (10:23):
I grew up in the eighties and a kind of
the eighties and the nineties. You know that game pac Man.
Speaker 3 (10:29):
I do know that game package.
Speaker 1 (10:30):
Okay, So, like, if you want to picture pac Man
as being the CEO of these businesses, like a wall
might be in front of him and he's going to
find the other way around to make money. It takes
all of about seven seconds of Okay, well, this person's
in Congress, Okay, this new law is coming down the pike.
(10:51):
Pivot to the other direction, and I'm back around to
eating up those points, right. I mean, that is how
it works time and time again. And you know, by
getting really emotional about how you feel about that particular person,
their policy, whatever. You know, what you're missing out on
is that that little pac man is still going to
continue to move in the other direction and eat up
(11:11):
all those points like the analogy.
Speaker 3 (11:13):
And you know that you're in college in the eighties.
Speaker 1 (11:15):
Which I was not in college. I said, I grew
up in the eighties.
Speaker 3 (11:19):
Now that that's a great point. It doesn't matter who's
in office. Capitalism drives the markets and they will continue
to move forwards.
Speaker 1 (11:27):
By the way, the same guy who made that major
prediction back in twenty twenty.
Speaker 2 (11:30):
Three also called for an everything bubble to.
Speaker 3 (11:34):
Burst this Okay, yeah, I think you did that last year.
This year before.
Speaker 1 (11:37):
Yeah, all the sectors were going to burst this year.
We got a couple of weeks left to go in
twenty twenty four. Anything could happen. You can call me
tomorrow if it does. If everything bursts, I don't see
it coming. But if you were listening to these things
right and felt like you need to make a change,
that's that's my concern. We're going to see a number
(11:58):
of predictions the rest of this year, well into January,
about what's going to happen, have your plan and stick
with it. That's the best course to follow. Here here's
the all Worth advice.
Speaker 2 (12:08):
We're going to even quote legendary baseball player Yogibar here.
Speaker 1 (12:11):
It's tough to make predictions, especially about the future. Right,
Never make financial decisions based on predictions. Coming up next,
why taking care of your four oh one k It's
more important than ever. Right now, you're listening to Simply
Money presented by all Worth Financial. Here in fifty five
KRC the talk station. You're listening to Simply Money presented
(12:34):
by all Worth Financial and any Wagner along with Seve Review.
Speaker 2 (12:37):
If you can't listen to.
Speaker 1 (12:38):
Our show every night, you don't have to miss any
of the brilliant financial nuggets we give out.
Speaker 2 (12:43):
We've got a daily podcast for you. Just search Simply Money.
Speaker 1 (12:46):
It's right there on the iHeart app or wherever you
get your podcasts. Coming up at six forty three, The
nuances of financial gifting. Right, what are your options? How
do you be as tax efficient as possible? We'll get
into all of that and just a few minutes. All right,
we have a treat for you tonight. All Worse Advisor
Bob Sponseller joining us on the microphone and we are
(13:06):
talking about four one k millionaires. A few years ago,
one of my best friend's husbands texted me it was
his Fidelity screenshot. They were officially millionaires in her four
one congratulations and I was like, that's so exciting.
Speaker 2 (13:25):
That's also all in a tax deferred account, so you're
not actually very Yeah, I know, I know. But the good.
Speaker 4 (13:34):
News is Amy, did you but did you use pac
Man analogies?
Speaker 2 (13:38):
Should have? I should have. I think that's helpful for everyone.
Speaker 3 (13:41):
Okay, yeah, Uncle Sam is going to eat up that
balance by taking taxes that you owed.
Speaker 2 (13:46):
Pac Man has implications for all of your financial needs.
Speaker 3 (13:48):
Yeah. Perfect. So Fidelity put out its its research recently
about four one K millionaires. Data just came out on
Thursday last week, and investments rose from rose nine point
five percent to a record five hundred and forty four
thousand dollars in the third quarter.
Speaker 2 (14:04):
Every one hundred and forty four thousand people.
Speaker 3 (14:06):
People yes that that are millionaires. That is thank you,
and average four on K and four to three balance
has stood at one hundred and thirty two thousand to
one hundred and nineteen thousand, respectively. These did this was
a rise of four percent for the prior year and
twenty three percent or the prior quarter and twenty three
percent from the prior year. That is so they're good trends.
Speaker 2 (14:26):
Yeah, well, markets are up, your four O one K
balance should be up.
Speaker 1 (14:29):
And I think we're also seeing also good trends with
people who are putting money, you know, contribute on the contribution.
Speaker 2 (14:35):
Side of things. But yeah, this is a great thing.
Speaker 1 (14:38):
I love to see it again though, when you look
at the average balance in these four O one k's,
it's a little bit of a gut punch.
Speaker 4 (14:45):
Yeah, share some of the contribution news, Amy, because that
that to me was encouraging. But then and then I
have a follow up comment on that.
Speaker 1 (14:51):
All right, number of gen x Ira accounts making contributions
up by quarter over that same period. Savings for Gena
with fifteen year tenures in their company's plan up six percent,
rite average balance over half a million dollars. We're moving
the needle in the right direction, and we talk about
gen Xer's gen zers and making contributions.
Speaker 2 (15:12):
That does make me excited.
Speaker 5 (15:14):
Yeah.
Speaker 4 (15:14):
My feedback on all this data is, you know, if
I'm sitting at home either looking at my own stuff
or thinking about our clients that are trying to do
their own planning. To me, all of these numbers and
data points are about as useless. Well they're about as
useless as all these predictions for where the S and
P five hundred was supposed to be yesterday, this.
Speaker 5 (15:35):
Year, next year.
Speaker 4 (15:36):
Yeah, So I would like to take us all back
to what the two of you I thought did a
great job last night talking about with respect to the
three legged stool, you know, social Security pension if you
have it, and then your savings. You know, as you're
evaluating the year and move forward, I would not care
(15:56):
about what your neighbor's balance is what Fidelity says the
average balances. It's all about looking at your situation and
adding up what your future sources of income are and
then if you're on track to accumulate enough savings to
be able to replace your income when when you're retired.
That's that's the game here, and that's what we need
to stay focused on. It is and any there are
(16:19):
a lot of good fiduciary advisors, you know, in Cincinnati,
we're blessed with a lot of good advisors in town.
We do a good job at that this is the
time to sit down with your advisor and just have
them run numbers. I know some people have the time,
inclination and interest to create these elaborate spreadsheets. I've got
analytical clients that do that on their own, just to
(16:40):
come in and see if ours looks like theirs. The
bottom line is to just do that and see if
you're on track.
Speaker 3 (16:47):
And then they forget to include inflation and the right
there's up and how long your money will last. But
you bring up a good point, because it really isn't
You don't need to compare yourself to others. Need to
focus on your own financial situation and needs and goals.
So making sure that you are saving, especially in this
day and age, in the four to one K to
the best of your ability is important because it is
(17:08):
no longer the three legged stool. It's the one and
a half, or, as I think I coined it yesterday,
the pogo stick.
Speaker 1 (17:14):
Yeah, and I think you're exactly right about the pogo stick.
Here's the thing, though, and to the point about the
fact that it's really on you. We're talking about four
to one K millionaires, in the fact that there's more
of them now than ever before that's great, do you
have access to a four to one K in your workplace?
I mean, the stats say forty percent of full time
workers do not have a workplace retirement savings plan. We
(17:37):
keep saying this is on you, it's on you. You
can't just wipe your hands of it. Oh well, I
don't have a four to one K at work. I'm
not getting a company match. I'm not going to save.
Speaker 2 (17:45):
Now.
Speaker 1 (17:45):
The onus is on you to figure out what are
your options? How can you save? How can you still
get dollars tucked away and earmarked for your future retirement?
Speaker 4 (17:54):
Yep, control what you could control and stay on top
of it.
Speaker 3 (17:58):
Yeah, it's a coin flip as to whether or not
you get a company match in this day and age,
literally fifty to fifty shot. So it doesn't matter. If
you don't, you still need to save. And if you
don't have access to a workplace plan through your employer,
let's say you're self employed. Then you sit down and
you look at some options out there, like opening your
own four A one K sep I or a perhaps
there's very high contribution limits and the investment options are
(18:21):
arguably going to be better than what you have in
your four to one K as far as variety is concerned.
So there are vehicles out there that you can save
in if you are not eligible for a plan through
your employer.
Speaker 1 (18:32):
If you do right have a company match, If you
do have a four oh one K, how do you
maximize it? First of all, you get that company match,
you put in at least as much as it takes
to get that full dollar amount from your boss.
Speaker 2 (18:44):
And then second, no, that investing schedule. Is there a
vesting schedule?
Speaker 1 (18:48):
So many people come into my office and I will say, like,
ask some questions about the four to one K, and
I don't know deer in headlights right, And it's like,
you need to know the features of your four.
Speaker 2 (18:57):
O one K.
Speaker 5 (18:58):
Yeah.
Speaker 3 (18:58):
I've made phone calls with folks that I work with
directly to their four O on K providers to ask
the questions. Yeah, literally, yeah, what is your match? Do
you have a separate contribution bucket for your bonus or
variable compensation? Do you have a true up feature? Is
there an after tax spillover so you can do megaroth
backdoor convergence? These are conversations that you should be having,
You should have knowledge about so that you can capitalize
on the vehicle that is going to carry you across
(19:20):
the finish line, which is you're typically your workplace retirement.
Speaker 2 (19:23):
Can you put roth dollars into that four one k?
Speaker 3 (19:25):
So many forgot about that?
Speaker 1 (19:26):
So many people I'm I asked that question, like, I
don't that's a thing. Yeah, it's a thing. How do
you how do you maximize it? It's important to understand.
Here's the all Worth advice. Consistent contributions over a long
period of time can help fuel financial independence.
Speaker 2 (19:41):
Please know your.
Speaker 1 (19:42):
Four A one K coming up next, Protecting your loved
ones from financial scams.
Speaker 2 (19:48):
Boy do we hate scammers.
Speaker 1 (19:49):
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station listening to
Simply Money because am I all Worth Financial? I Meani
Wagner along with Steve Ruby. Wherever you go, whatever you
are doing, you should probably operate under the premise that
someone is actively trying to scam you, because well they are,
(20:12):
and if you are retired, or if you have a
loved one who is they are coming after you. There's
this crazy new stat the number of older adults who
lost six figures or more to fraud has tripled in
just the past four years. What do you need to
know about how do you protect yourself? Joining us as
our tech expert Dave Hatter from intrust it, this statistic
(20:36):
is alarming to say the least.
Speaker 5 (20:39):
Yeah, I agree, Amy, When you look at the scale
of this, both in terms of the number of people
who fall and prey to this and the amount of
money they're losing, it's really scary and really depressing, you know,
especially if you have older relatives that you might be
concerned about. So, I mean, the good news is you
have organizations like the FBI and the FTC capturing the
(21:00):
stats and reporting about it. But I think the even
worse news is, by any objective measure, when you look
at what the FBI in particular has to say about cybercrime,
they'll tell you they believe only a very small portion
of it is actually reported because in many cases there
aren't a report, There isn't a reporting requirement rather, and
many people are ashamed and embarrassed and don't want to
(21:20):
report it. So the number is probably much larger than
this because of the fact that folks don't want to
admit they've been scammed out of thousands of dollars.
Speaker 3 (21:28):
So why the uptick, Why is there such a huge
increase in the number of large dollar losses in scams?
Speaker 5 (21:36):
Well, Steve, I think there's a bunch of reasons for that.
First off, more people are spending more time online than
ever before. You know, we do everything online in our
digital society. We entertain ourselves, we educate ourselves, we enrich
ourselves through work and so forth, all online. You've got
more people spending more time online and less secure environments.
You know, like thirty years ago, most people, if they
(21:57):
were quote online on the Internet, they were probably doing
it at work where you had more security features than
you might have in your personal environment. And then on
top of all of that, you know you've got so
you've got more targets, more people online and less secure environments,
working from home, et cetera. And you've got more attack
vectors to get to them. Whether it's email, it's text,
(22:17):
it's social media, there's so many different ways to get
to people, and the scammers, especially thanks to AI powered
fraud like deep fakes and voice cloning and so forth,
are able to reach people at scale and create increasingly
realistic scams. And then some of it. Steve still comes
back to the old con man type angle. Right, You
(22:37):
get on a site, you strike up a rapport with someone,
possibly because they know a lot about you from day
that it's been stolen. Next thing, you know, your friends,
now you're in some romantic relationship where they're telling you
how they're making a bunch of money in bitcoin, and
you know they just con you out of the money.
So I think it's a combination of all of those things.
And you know, I appreciate you guys giving me the
opportunity to come on and try to warn folks about this,
(22:59):
because the most important defense against all of this, it's
just awareness that scammers are everywhere and you really can't
trust anything you see or anyone you meet online. It
could easily be spoofed and you could be getting socially
engineered into this kind of fraud.
Speaker 2 (23:14):
You know, Dave, I've seen statistics too.
Speaker 1 (23:16):
I've got you know, four teenagers, and they're just as
susceptible to getting scammed as older adults.
Speaker 2 (23:22):
They just look different.
Speaker 5 (23:23):
Right.
Speaker 1 (23:23):
My kids grew up with devices in their hand, and
so the scams that probably they're going to be more
susceptible to are going to come through those devices. But
let's talk about for someone who is targeting older adults,
it may not be coming through TikTok, but it's coming
out in some way.
Speaker 5 (23:40):
Yeah. Well, I think another key thing about the older
demographic is they are often going to have more money
to steal. You know, the types of tax and targeting
on younger people are typically different, and they understand that.
You know, your average twenty one year old probably doesn't
have a lot of money to steal. Your average sixty
five seventy five year old probably has a lot more
money to steal, which you know, consequently is also a
(24:03):
lot harder for them to replace at that age. So
you know, I think that's part of the targeting and
why you see this and then you know again it's
it's your standard romance scams, it's investment scams. One of
the things, like I said previously, that I think makes
this so devious and innovative on the bad guys part
is so much information has been leaked about so many
(24:25):
people through these giant data breaches. In many cases, if
I go to like a dating site or something, you know,
it's easy to create a fake profile, It's easy to
use a fake photo, or steal someone else's photo and
create a PERSONA be that person. I start talking to you,
maybe I target you or maybe you know you find me,
and then I look up some information on you because
I'm a professional scammer and I'm making a lot of
(24:46):
money at this, and I'm usually in a place like
you know, some third world country where I can't be
can't be arrested. There's no real, no real recourse to
do anything about this in so many cases, and then
you know, I just lead you down the rabbit hole
into whatever sort of scam I want to run on
you again. It's it's warning folks that anything you find
(25:07):
online can be easily faked, and there are conment out
there who are making enormous amounts of money scamming people.
And it's warning elderly folks too. Like Microsoft and Google,
believe it or not, are not going to call you
and say, hey, I think there's a virus on your computer.
Why don't you let me connect up to your computer
and fix that for you and then call them and yeah, yes, Steve,
(25:29):
use try and call them and see if you can
get any support. They're not calling you. Trust me, trust me. Yeah,
if someone asks you to pay and gift cards. It's
a scam. If someone tells you they've made a bunch
of money in cryptocurrency that you just met online, or
you're suddenly romantically involved in are there a soldier overseas,
it's a scam, right, And you can use these FBI
(25:50):
and f FTC resources where they put out PSAs on this,
you know, to educate yourself and raise awareness and you know,
share it with your older friends so that they're not
getting socked into one of these scams. Now, I'm not
saying you can't ever meet a friend or have a
romantic relationship online, just saying understand everything is easily fakable,
and these con men will social engineer you.
Speaker 3 (26:13):
You know, every time you're on my palms get sweaty,
my anxiety goes on. There's so much that we need
to be aware of. And you know, it's fantastic to
spread awareness about some of these issues. But let's talk
about you know, the at least the low hanging fruit,
key takeaways that you can use to protect yourself, red
flags to look out for that type of thing.
Speaker 5 (26:33):
Well as always, if it's too good to be true,
it probably is. If you suddenly fall in love with
someone you met online recently, and then they you know,
want you to invest in crypto or they suddenly need
to borrow a lot of money from you. My guess
is both of you, or or at least someone you know,
has been hit with Like someone takes over a Facebook
account and then says, I've had this happen to me friends.
(26:54):
Facebook account gets taken over. Well, I'm out of town,
I lost my wallet. Can you send me money? Right?
You know, just because you think you're talking to someone
you know, or you've suddenly built rapport with your soulmate online,
you know, you have to be extremely skeptical, you know,
if they want to isolate you, if they want money,
those are all strong red flags. Check out these FBI resources.
(27:18):
Go talk to someone else, you know, talk to a
trusted person you know, and say, hey, I'm in this
relationship now and they want me to do X, Y
or Z. Does that seem reasonable to you? Because, as
this article states, and these are based on stats of
actual crime reported, people are potentially losing tens of thousands
of dollars in some cases their entire life savings and
(27:39):
as an you know, retired person on a fixed income,
it's going to be really difficult to replace that, you know,
sense of urgency. You have to do something right away.
You touched on that before. Step unusual ways to pay.
They want gift cards, or they want Venmo, or they
want PayPal. You know, any play anything like that where
there's limited consumer protection should be a strong red flag, right,
(27:59):
because you're probably not going to have much recourse. If
you transfer a bunch of money to someone through Venmo
and then they disappear on you, I can almost guarantee
that you're not going to get that money back.
Speaker 1 (28:09):
I'm so glad that you brought up to sense of
urgency because that's the number one thing anytime I have
ever known someone who has been scammed.
Speaker 5 (28:15):
Right.
Speaker 1 (28:16):
I had a friend whose mom fell for that the
grandparents scam, that her granddaughter.
Speaker 2 (28:20):
Was somewhere and she need help.
Speaker 1 (28:22):
It was like and she later said, if I had
if I had taken the time to think through it,
I knew Ashley wasn't.
Speaker 2 (28:29):
In that I would have known better.
Speaker 1 (28:31):
But there's such a sense of urgency, and there always
is when it comes to these scams.
Speaker 2 (28:35):
So that's another great thing to keep an eye out from.
Speaker 1 (28:37):
Great advice as always, how to protect yourself and your
loved ones from scams.
Speaker 2 (28:42):
From our tech expert Dave Hatter.
Speaker 1 (28:44):
You're listening to Simply Money presented by all Worth Financial
Here in fifty five KRC the talk station. You're listening
to Simply Money presented by all Worth Financial, I Memi
Wagnera along with Steve Ruby straight ahead the day anger
of deferred interest. If you're attempted by that when you're
(29:04):
doing your holiday shopping this year, We've got a warning
for you. Okay, there are certain people who find yourselves
in a situation financially where you have more than you need.
It's a beautiful place to be, and then it becomes
I can't possibly use this money maybe during my entire lifetime.
Or maybe you've got kids or grandkids and you want
to be able to make a difference in their lives.
(29:25):
How do you gift in a way that's really meaningful?
Ours Advisor, Bob'spondseller are back joining us for this segment.
Speaker 2 (29:33):
Bob, this is a great place to be.
Speaker 4 (29:36):
Yeah, and this I've got a story to tell today
and this will be amy You're and Steve's opportunity to
evaluate my parenting skills. So you know, after being in
this industry for decades and spewing out a lot of
advice to people, and you hope that some of it's
actually good advice when it comes time to dealing with
(29:56):
your adult children. Now it's all right, Bob, mister financial advisor, are.
Speaker 2 (30:02):
You to talk and talked away exactly?
Speaker 3 (30:04):
Exactly?
Speaker 4 (30:05):
So, you know, my wife and I have three adult sons,
early twenties to almost thirty. So this is a story
about my Our middle son graduated from college, actually got
a pretty decent job making a good income, and I
had and this is kind of tying back into our
last last segment. I'm tracking him down for six months,
(30:26):
twelve months, fifteen months. Are you in your four to
one k? What's your match?
Speaker 2 (30:31):
Dad?
Speaker 4 (30:31):
I don't know. I don't know, and I'm starting to
get irritated, you know, and my wife and kid. You know,
we all have to deal with this. We eat, sleep,
and drink this stuff all day. Our wife and kids don't.
So you got to kind of pump the brakes on
the financial advisor stuff home a little bit. But I
hounded it, hounded him, hounded. I think I might have
used the word idiot a couple of times.
Speaker 2 (30:53):
So judgment, no judgment.
Speaker 4 (30:55):
Eventually, everything sounds good to me so far. Yes, So
eventually the summary plan description showed up. You know, I
made him pull out his laptop and pulled up the
site and he enrolled in the plan, and he figured
out what his match was and it contributed up to
the you know, the company match. It was like pulling teeth,
(31:16):
but we got it done. Fast forward to about, I
don't know, three weeks ago. He's over at our house
laying on the couch watching a football game with me,
and I see him holding his iPhone and he's got
his Fidelity app out and I'm like, what are you
doing over there? He goes, Dad, this is awesome.
Speaker 3 (31:36):
Watching it grow.
Speaker 4 (31:37):
Yeah, the market's been up, you know, nicely the last
two years. He's been just doing the basic blocking and
tackling like we talked about, and he's like, I can't
believe how much money I've got saved, and he and
his wife were able to buy their first home this year.
I contributed nothing to this other than you know, the
guy out to him, other than calling him an idiot.
Speaker 3 (31:59):
I called it. Yeah, he's he's used to that. But
but yeah, so.
Speaker 2 (32:03):
Gift though, is the financial knowledge.
Speaker 4 (32:05):
Right well, and that's why I wanted to tie this
back into the show you know, Amy that you and
Steve did last week that I thought was excellent, talking
about the importance of families actually sitting down with their
kids and and just the whole culture around equipping your
kids to handle money they don't get it in school.
You know, you shared yourself, Amy, it's kind of a
(32:28):
taboo topic among people. It's critically important, and I think
it's a vital job, you know, as parents to either
do it ourselves or hook them up with an uncle
or relative that knows this stuff or a financial advisor
that can help them. But we do need to disseminate
this information to our kids. And you know, I, you know,
(32:49):
going back to my days coaching baseball, people respond you know,
to incentives, and I do believe almost every person I've
run into, they they respond well to positive reinforcement for
things that they've done well, rather than ripping them for
things that they haven't done well.
Speaker 2 (33:09):
Yeah.
Speaker 4 (33:09):
So, and I saw that happen, you know, with my son.
So my wife will probably say it's all because of her.
Speaker 3 (33:16):
It probably is. And he saw it when he logged
into the Fidelity app and saws for one.
Speaker 1 (33:20):
Yeah, I mean financial literacy is I would say, hands
down the best gift you can give your children, whether
you can actually gift them dollars or or you're actually
gifting them money and you know, if you've got And
this is actually something that I've been thinking about lately,
teenage kids for Christmas, you know, exposing them to the
concept of ownership of part of a company. They might
(33:43):
actually get stock in a company for Christmas this year,
because I want them.
Speaker 2 (33:48):
To get into that fidelity app and start looking.
Speaker 1 (33:51):
At the fact that wait a second, my money doesn't
grow any faster when I'm getting paychecks and spending it
immediately than it possibly could if this money was actually
sitting here infested.
Speaker 3 (34:01):
Yeah. I think it's kind of funny because some folks
I work with they want to gift shares of stock
to adult children sometimes, and it's like pulling teeth to
get those adult children to open a brokerage account so
they can accept those shares. I've literally seen that, Like
I've been badgering them for a year. They still won't
do it. Why not, Well, I guess you get a
calm an idiot at some point.
Speaker 2 (34:22):
I like that approach. What about if your budget is
a little bit higher, you.
Speaker 3 (34:26):
Know, you could open a roth iray and fund that
as long as the child has earned income. That's certainly
an opportunity. You know, ten thousand dollars budget, let's say
maybe we could fund a five twenty nine for a
child or a grandchild. There's plenty of ways to give
money tax efficiently to loved ones. If you have a
pile cash sitting there, then you're able to do so
(34:47):
very easily. The annual exemption per year is eighteen thousand dollars.
You can gift cash to children or anybody for that matter,
without any kind of tax liability for either of you.
Speaker 1 (34:57):
Yeah, and if you're married, you can each gift right
that amount of money, and if they're married, you can.
Speaker 2 (35:03):
Each give it to both of them.
Speaker 1 (35:05):
So as you think about that, you know, if it's
eighteen thousand dollars, that's a sizeable amount of money that
you're able to gift to them every year, not paying
taxes on them, not paying taxes on So there's ways
to do this, and I know a lot of people
who I work with really light the idea of seeing
the impact. Right, you can wait until you're gone and
people can inherit that money. But also it's really nice
(35:25):
to see what they're doing with it while you're still here.
Speaker 2 (35:27):
Here's the all Worth advice.
Speaker 1 (35:29):
Make sure your financial gift is meaningful, manageable for your budget,
and then aligns with the recipient's needs or goals. Financial
education is huge here coming up next the trick retailers
are using all the time to try to get you
to sell it, maybe more than you can afford this
holiday season. You're listening to Simply Money presented by all
Worth Financial. Here in fifty five KRC the talk station.
(35:53):
You're listening to Simply Money presented by all Worth Financial.
I mean you Wagner along with Steve Ruby. For those
of you who are in the throes of your holiday shopping,
I'm not speaking East.
Speaker 3 (36:02):
No, you're not one at all.
Speaker 1 (36:03):
You've got weeks until you started nothing for Christmas.
Speaker 2 (36:07):
This stresses me out for you.
Speaker 1 (36:09):
Good, but whatever you do, you many people are already finished.
But listen as you're shopping, and many of us are
doing this online shopping. Now, when you're checking out right,
you'll see like here's the actual cost of it, or
a much lower cost right below it, and you can
pay this in five different installments. Many people don't ever
(36:31):
read the fine print. This makes me nervous, especially for
my kids, right because you're they're like, you know, they
don't have any money, they're you know whatever, and they're
buying things and it can look really appealing. Well I
don't I can't pay one hundred dollars for this now,
but I can pay twenty dollars and then twenty dollars
four more times after that, unless maybe you can't.
Speaker 3 (36:52):
Yeah, deferred interest can create massive problems. You get kicked
in the teeth with interest if you don't pay off
whatever you owe by the end of a set period
of time. It's charged all at once on the remaining card,
and the interest rates are extravagant on these things. The
idea is that, sure, I guess, maybe capitalize on it
(37:13):
if you one percent know for a fact that you
can afford to pay it. Ideally, just buy the thing
out right without needing.
Speaker 2 (37:21):
You can't afford it. You can't afford it now.
Speaker 1 (37:24):
Listen, back in the day, Sue Wagner loved the kmart layaway.
Speaker 2 (37:28):
I mean she loved the Kmart layaway, and so you know,
all the Christmas.
Speaker 1 (37:32):
Presents, she would and she would drive to kmart whatever
it was, once a week, once a month and pay
on that.
Speaker 2 (37:39):
That was a different way of looking.
Speaker 1 (37:40):
She couldn't afford it all up front, but the stuff
didn't leave the store and she eventually paid it all off.
Speaker 2 (37:47):
But this is a different way.
Speaker 1 (37:48):
This is the twenty twenty four version of give me now.
I'm not going to read the shine prints. Yeah, I'm
going to think I can pay it off, and back
to the example that I used before. Okay, maybe I
can't aford a hundred right now, but but then when
you start buying seven, eight, ten things, especially during the
holiday season, and you're looking at that little, the smaller
(38:10):
amount that you would be paying in installments, But all
of a sudden, if you're paying ten different things on
installment plans, you may not be able to do that.
Speaker 2 (38:17):
You might drop a ball, you might miss a payment.
Speaker 3 (38:19):
Yeah, and that's the problem. If you owe a dollar
at the end of the term, then all the interest
gets put on you. Yes, you have to pay it all.
Speaker 2 (38:27):
Not the interest on that dollar, not the last dollar.
Speaker 3 (38:29):
On everything that would have accrued over whatever period of time.
So don't don't fall into this trap. I mean, maybe
maybe use a credit card with the reward points and
then pay that off at the end of the month. Yeah,
that would be the ideal situation, because remember not anti
credit card as long as as long as you use them.
Speaker 1 (38:43):
Right, If you can't afford it, now you can't afford it,
don't buy it. Thanks for listening. We hope you're going
to tune tomorrow. We're taking a deep dive into Wall
Street sphere gauge. What does that mean for you? Even
listening to Simply Money presented by all Worth Financial Here
in fifty five KRC, the talk station
Tonight's stock Market predictions for twenty twenty five?
Speaker 2 (00:09):
What should you do with your foural one k?
Speaker 1 (00:11):
And the dues indulce of gifting money and of course
we've got much more. You're listening to Simply Money, presented
by all Worth Financial Imami Wagner along with Steve Ruby.
Speaker 2 (00:20):
This is one of this This show is like a
gift to myself.
Speaker 1 (00:23):
It is like one of my favorite things to talk
about for anyone who spends any time in the financial.
Speaker 2 (00:30):
Headlines as we do. We have to, that's what we
do for the show.
Speaker 1 (00:34):
You know that there are all kinds of people who
get paid, by the way insane paychecks to make some
major predictions on what's going to happen this year with
the economy, with the stock market, with your foural one
K and so we are now looking ahead to twenty
twenty five and some of those predictions.
Speaker 3 (00:53):
Yeah, I mean this is a lot of fun for
me because that predictions, what are they actually worth about? Nothing?
Speaker 2 (00:59):
Oh no? Actually not?
Speaker 3 (01:00):
Yeah, I mean, well it depends on if somebody's selling something.
Actually we'll get to what we're actually talking about here
in a minute, but out.
Speaker 2 (01:07):
Let's start with the predictions.
Speaker 3 (01:08):
Well, I have to explain. A client sent me an
email just yesterday and it was this article titled something
along the lines of twenty twenty five four oh one
k and IRA savings are for losers are for losers,
and it starts with this little disclaimer, something along the
lines of, please note that we put our client's best
(01:30):
interests ahead of everything, but we might get kicked back
when people click on links in those articles. And it
was trying to sell gold, iras and crypto.
Speaker 2 (01:42):
What's the angle?
Speaker 4 (01:43):
Right?
Speaker 1 (01:43):
You always have to look at these headlines through the
lens of what's the angle here?
Speaker 3 (01:47):
Yeah, so selling on fear based on prediction, so, oh yeah,
it just gets under my skin. But Oppenheimer came out
prediction making headlines. Currently Oppenheimer Asset Management chief investment strategist.
There predicts the S and P five hundred will hit
seventy one hundred in twenty twenty five.
Speaker 1 (02:05):
Great prediction. And if that happens, fantastic. As an investor,
What does this mean to me? Maybe I should put
all my chips and move them into the market. Absolutely not,
you know, And that's the thing. People make decisions based
on two emotions more than anything else. Fear, and greed,
And that's what these headlines play into. And when you
(02:25):
hear about someone making major predictions on the markets going
way up over the course of the next year, if
the little voice in the back of your head starts
to say, maybe I should move the needle right and
we've gotten we have gotten those calls from ninety two
year old say and put me one hundred percent in
the market.
Speaker 2 (02:43):
It's not where a ninety two year old probably belongs.
Speaker 3 (02:45):
Right, Yeah, exactly. And this is fueled by greed, obviously.
I've actually told some some folks that I'm a little
bit closer to, like you are literally being greedy right now. Yeah,
you are fear and greed and right emotions. And you're
asking to go one hundred percent stock when you're eighty
years old because the markets are at all time highs.
Speaker 1 (03:06):
How's that going to feel when unpredictably markets turned south
twenty percent?
Speaker 2 (03:11):
How are gonna feel about that decision?
Speaker 3 (03:13):
Exactly? So, these predictions, the thing that gets enter my
skin is that people will act on them, oftentimes against
their own best interests.
Speaker 1 (03:22):
And you know, listen, this guy who's making this prediction
about the S and P five hundred being up next
year is looking at, you know, the broadening of the
market from the market lows that we saw in October
of twenty twenty three, along with ongoing rebalancing and rotation
among sectors.
Speaker 2 (03:38):
He's throwing a bunch of big concepts out here.
Speaker 1 (03:40):
You know, these are the reasons why I think things
could go up this, who knows?
Speaker 2 (03:45):
Who knows?
Speaker 1 (03:47):
And then that's what often these people do, right, They
make a prediction, they throw a couple possible porting supporting
pieces of it. You know, evidence in there may or
may not work out. That way, you can tuck it
in the back of your head and say, interesting, you know,
we'll see what happens. But if you're making investment decisions
because of what you're reading in financial headlines, and those
(04:09):
investment decisions are not what's part of your long term
financial plan, it's a really bad path to go exactly.
Speaker 3 (04:17):
That's why we as financial planners focus on the financial plan,
because we focus on the long term. We focus on
making sure you're taking the level of risk that you
need to meet your different, sometimes competing financial priorities. So
it doesn't matter what the predictions say. You know, I well,
it's funny because I'm gonna fiow it up with my
own prediction.
Speaker 2 (04:37):
Right, here's the myronie for you.
Speaker 3 (04:39):
Yeah right, the markets will go up over the long term,
Boom done. It's as simple as that. But we will
have volatility along the path. When that volatility happens is
what's unknown. It's like walking as naked background used to say,
it's a drunk guy walking up the stairs while playing
with a yo yo.
Speaker 1 (04:55):
Yeah, and your prediction is based on historical fact. One
hundred percent of the time markets have gone down and
then rebounded to new highs, So that prediction is based
on fact. Not if seventeen different things have this confluence
at the same exact time, maybe this thing will happen,
(05:18):
which is what a lot of these predictions are based on.
You're listening to simply Money presented by all Worth Financial,
I mean you Wagner along with Steve Ruby predictions for
twenty twenty five. This is one of my favorite topics
because you're going to see them all over the place.
Speaker 2 (05:31):
Now.
Speaker 1 (05:32):
Speaking of all over the place, though, there is a
number of people kind of on the same page here,
so not only Oppenheimer Deutsche Bank right there forecasting twenty
twenty five s and P five hundred hit seven thousand,
ubsked looking at sixty four hundred, City group.
Speaker 2 (05:46):
Thinks the s and P five hundred will hit sixty
five hundred.
Speaker 1 (05:49):
Many people seem to be on the same page that
it looks like it could be a good year for
your four one.
Speaker 5 (05:54):
Kay.
Speaker 1 (05:55):
If that happens, great, great. I just want to remind
you time and time again in don't make any changes
based on those predictions.
Speaker 3 (06:03):
Well, predictions coming into twenty twenty four. So exactly what
we would have been talking about a year ago.
Speaker 2 (06:07):
One year ago was.
Speaker 3 (06:09):
Wall Street forecasting recession due to an inverted YO curve
and hedging risks against twenty twenty four. So the predictions
last year, if you would have listened to that, then
maybe you would have moved into cash, said on the sidelines,
and then missed out repeatedly hitting all time highs in
the market.
Speaker 1 (06:26):
It was in this very month one year ago that
an economist, Harry Dtt got on Fox News and made
this prediction, I think twenty twenty four is going to
be the biggest single crashier we will see in our lifetimes. Now,
if that doesn't make you want to run for the hells,
I don't know what will. And I would love to
(06:48):
know the number of people who were watching it at
that point that made a change with their investments, with
their portfolio based on that prediction, and then also if
they did how they're feeling today.
Speaker 3 (07:01):
Yeah, too many. I mean, I've explained it before, but
when I started in this industry, I started in a
four toh one K customer service role, not license. Obviously.
I didn't stay in that role too long before I
started getting some securities licenses and a couple of years
later became a certified financial planner. But the phone calls
that I would get, it was a red light on
my phone and it was people calling in constantly. I
(07:21):
saw something online and it spooked me and I need
to stop contributing to my four oh one K and
move everything to cash. And I would just say, okay, great,
you reached right place. I'm happy to help me out
with that anything else I could do for you today.
Speaker 1 (07:33):
Meanwhile, it's sucking your soul that this person's making this
decision right.
Speaker 3 (07:37):
Without a license, without security licenses. There being in a
role where I'm allowed to ask a question.
Speaker 2 (07:41):
Like why are you sure?
Speaker 3 (07:45):
Yeah, that seems like a pretty bad idea. You know,
I couldn't give any of that feedback at all. It
was just smile, grin, and you know, wait for the
next phone call. So during periods of volatility, unfortunately, we
would get a lot of those. So yeah, it's anecdotal,
but I've seen it in my own career where people
would just constantly react emotionally, and unfortunately at that time,
(08:05):
I wasn't in a position where I could stop them.
Now that I'm a fuciary financial planner, big part of
our job is protecting people from making emotional decisions that
could derail their own financial futures.
Speaker 2 (08:16):
Yeah, that they can't recover from you.
Speaker 1 (08:18):
We talked about this yesterday, but I want to bring
it up again too, because I think it falls along
these lines of you have these knee jerk reactions to headlines,
but this is how you feel about politics. You know,
I was really hoping that once this election was over,
regardless of how you felt about it, right, And in
this show, we've said this a million times. We're not red,
we're not blue, we're green. How does the person in
(08:41):
this office or Congress affect your money? That's what we're
going to talk about. But I'm still getting people in
my office who want to change their financial plans based
on now the fact.
Speaker 2 (08:53):
That Donald Trump is the president elect.
Speaker 1 (08:55):
And some people are like, yes, pro business, I'm going
all in, and there are other people who are like,
I don't like him, and so I'm going to pull
money out. And I'm constantly still having these conversations. You
can feel however you want about politics.
Speaker 2 (09:12):
And you should, and you can be very emotional about it. It
does affect your life, but it shouldn't impact your money.
Speaker 1 (09:19):
And if we have done anything through the years on
the show, I hope it is educate you on the
fact that history shows us you should not get emotional
about your money.
Speaker 3 (09:29):
Yeah, when you really break down the numbers, We've had
entire segments and shows about it, it almost doesn't matter
who's in office at the end of the day, doesn't
because they don't drive the markets the same way that
many people would think. It's actually driven by capitalism, which
is fueled by creed for greed, and corporate greed isn't
going anywhere anywhere no matter who's in the office. So's
(09:49):
if it's more pro business or if it's expanding social programs,
whatever side of the aisle. Is leading the charge. It
doesn't matter because businesses will pivot to find ways to
make money. Now, what is interesting, though, is that a
split in leadership, whether whether it's you know, President and
Congress being split, that that actually creates more gridlock, which
(10:09):
is good for the markets. If one party controls everything,
then that leads to a little bit more unpredictability, which
the markets don't particularly like. But it still doesn't matter.
They're still going to go up over the long term.
Speaker 2 (10:20):
Okay, this might be a weird thing to say, but
this just popped into my head.
Speaker 5 (10:23):
Right.
Speaker 2 (10:23):
I grew up in the eighties and a kind of
the eighties and the nineties. You know that game pac Man.
Speaker 3 (10:29):
I do know that game package.
Speaker 1 (10:30):
Okay, So, like, if you want to picture pac Man
as being the CEO of these businesses, like a wall
might be in front of him and he's going to
find the other way around to make money. It takes
all of about seven seconds of Okay, well, this person's
in Congress, Okay, this new law is coming down the pike.
(10:51):
Pivot to the other direction, and I'm back around to
eating up those points, right. I mean, that is how
it works time and time again. And you know, by
getting really emotional about how you feel about that particular person,
their policy, whatever. You know, what you're missing out on
is that that little pac man is still going to
continue to move in the other direction and eat up
(11:11):
all those points like the analogy.
Speaker 3 (11:13):
And you know that you're in college in the eighties.
Speaker 1 (11:15):
Which I was not in college. I said, I grew
up in the eighties.
Speaker 3 (11:19):
Now that that's a great point. It doesn't matter who's
in office. Capitalism drives the markets and they will continue
to move forwards.
Speaker 1 (11:27):
By the way, the same guy who made that major
prediction back in twenty twenty.
Speaker 2 (11:30):
Three also called for an everything bubble to.
Speaker 3 (11:34):
Burst this Okay, yeah, I think you did that last year.
This year before.
Speaker 1 (11:37):
Yeah, all the sectors were going to burst this year.
We got a couple of weeks left to go in
twenty twenty four. Anything could happen. You can call me
tomorrow if it does. If everything bursts, I don't see
it coming. But if you were listening to these things
right and felt like you need to make a change,
that's that's my concern. We're going to see a number
(11:58):
of predictions the rest of this year, well into January,
about what's going to happen, have your plan and stick
with it. That's the best course to follow. Here here's
the all Worth advice.
Speaker 2 (12:08):
We're going to even quote legendary baseball player Yogibar here.
Speaker 1 (12:11):
It's tough to make predictions, especially about the future. Right,
Never make financial decisions based on predictions. Coming up next,
why taking care of your four oh one k It's
more important than ever. Right now, you're listening to Simply
Money presented by all Worth Financial. Here in fifty five
KRC the talk station. You're listening to Simply Money presented
(12:34):
by all Worth Financial and any Wagner along with Seve Review.
Speaker 2 (12:37):
If you can't listen to.
Speaker 1 (12:38):
Our show every night, you don't have to miss any
of the brilliant financial nuggets we give out.
Speaker 2 (12:43):
We've got a daily podcast for you. Just search Simply Money.
Speaker 1 (12:46):
It's right there on the iHeart app or wherever you
get your podcasts. Coming up at six forty three, The
nuances of financial gifting. Right, what are your options? How
do you be as tax efficient as possible? We'll get
into all of that and just a few minutes. All right,
we have a treat for you tonight. All Worse Advisor
Bob Sponseller joining us on the microphone and we are
(13:06):
talking about four one k millionaires. A few years ago,
one of my best friend's husbands texted me it was
his Fidelity screenshot. They were officially millionaires in her four
one congratulations and I was like, that's so exciting.
Speaker 2 (13:25):
That's also all in a tax deferred account, so you're
not actually very Yeah, I know, I know. But the good.
Speaker 4 (13:34):
News is Amy, did you but did you use pac
Man analogies?
Speaker 2 (13:38):
Should have? I should have. I think that's helpful for everyone.
Speaker 3 (13:41):
Okay, yeah, Uncle Sam is going to eat up that
balance by taking taxes that you owed.
Speaker 2 (13:46):
Pac Man has implications for all of your financial needs.
Speaker 3 (13:48):
Yeah. Perfect. So Fidelity put out its its research recently
about four one K millionaires. Data just came out on
Thursday last week, and investments rose from rose nine point
five percent to a record five hundred and forty four
thousand dollars in the third quarter.
Speaker 2 (14:04):
Every one hundred and forty four thousand people.
Speaker 3 (14:06):
People yes that that are millionaires. That is thank you,
and average four on K and four to three balance
has stood at one hundred and thirty two thousand to
one hundred and nineteen thousand, respectively. These did this was
a rise of four percent for the prior year and
twenty three percent or the prior quarter and twenty three
percent from the prior year. That is so they're good trends.
Speaker 2 (14:26):
Yeah, well, markets are up, your four O one K
balance should be up.
Speaker 1 (14:29):
And I think we're also seeing also good trends with
people who are putting money, you know, contribute on the contribution.
Speaker 2 (14:35):
Side of things. But yeah, this is a great thing.
Speaker 1 (14:38):
I love to see it again though, when you look
at the average balance in these four O one k's,
it's a little bit of a gut punch.
Speaker 4 (14:45):
Yeah, share some of the contribution news, Amy, because that
that to me was encouraging. But then and then I
have a follow up comment on that.
Speaker 1 (14:51):
All right, number of gen x Ira accounts making contributions
up by quarter over that same period. Savings for Gena
with fifteen year tenures in their company's plan up six percent,
rite average balance over half a million dollars. We're moving
the needle in the right direction, and we talk about
gen Xer's gen zers and making contributions.
Speaker 2 (15:12):
That does make me excited.
Speaker 5 (15:14):
Yeah.
Speaker 4 (15:14):
My feedback on all this data is, you know, if
I'm sitting at home either looking at my own stuff
or thinking about our clients that are trying to do
their own planning. To me, all of these numbers and
data points are about as useless. Well they're about as
useless as all these predictions for where the S and
P five hundred was supposed to be yesterday, this.
Speaker 5 (15:35):
Year, next year.
Speaker 4 (15:36):
Yeah, So I would like to take us all back
to what the two of you I thought did a
great job last night talking about with respect to the
three legged stool, you know, social Security pension if you
have it, and then your savings. You know, as you're
evaluating the year and move forward, I would not care
(15:56):
about what your neighbor's balance is what Fidelity says the
average balances. It's all about looking at your situation and
adding up what your future sources of income are and
then if you're on track to accumulate enough savings to
be able to replace your income when when you're retired.
That's that's the game here, and that's what we need
to stay focused on. It is and any there are
(16:19):
a lot of good fiduciary advisors, you know, in Cincinnati,
we're blessed with a lot of good advisors in town.
We do a good job at that this is the
time to sit down with your advisor and just have
them run numbers. I know some people have the time,
inclination and interest to create these elaborate spreadsheets. I've got
analytical clients that do that on their own, just to
(16:40):
come in and see if ours looks like theirs. The
bottom line is to just do that and see if
you're on track.
Speaker 3 (16:47):
And then they forget to include inflation and the right
there's up and how long your money will last. But
you bring up a good point, because it really isn't
You don't need to compare yourself to others. Need to
focus on your own financial situation and needs and goals.
So making sure that you are saving, especially in this
day and age, in the four to one K to
the best of your ability is important because it is
(17:08):
no longer the three legged stool. It's the one and
a half, or, as I think I coined it yesterday,
the pogo stick.
Speaker 1 (17:14):
Yeah, and I think you're exactly right about the pogo stick.
Here's the thing, though, and to the point about the
fact that it's really on you. We're talking about four
to one K millionaires, in the fact that there's more
of them now than ever before that's great, do you
have access to a four to one K in your workplace?
I mean, the stats say forty percent of full time
workers do not have a workplace retirement savings plan. We
(17:37):
keep saying this is on you, it's on you. You
can't just wipe your hands of it. Oh well, I
don't have a four to one K at work. I'm
not getting a company match. I'm not going to save.
Speaker 2 (17:45):
Now.
Speaker 1 (17:45):
The onus is on you to figure out what are
your options? How can you save? How can you still
get dollars tucked away and earmarked for your future retirement?
Speaker 4 (17:54):
Yep, control what you could control and stay on top
of it.
Speaker 3 (17:58):
Yeah, it's a coin flip as to whether or not
you get a company match in this day and age,
literally fifty to fifty shot. So it doesn't matter. If
you don't, you still need to save. And if you
don't have access to a workplace plan through your employer,
let's say you're self employed. Then you sit down and
you look at some options out there, like opening your
own four A one K sep I or a perhaps
there's very high contribution limits and the investment options are
(18:21):
arguably going to be better than what you have in
your four to one K as far as variety is concerned.
So there are vehicles out there that you can save
in if you are not eligible for a plan through
your employer.
Speaker 1 (18:32):
If you do right have a company match, If you
do have a four oh one K, how do you
maximize it? First of all, you get that company match,
you put in at least as much as it takes
to get that full dollar amount from your boss.
Speaker 2 (18:44):
And then second, no, that investing schedule. Is there a
vesting schedule?
Speaker 1 (18:48):
So many people come into my office and I will say, like,
ask some questions about the four to one K, and
I don't know deer in headlights right, And it's like,
you need to know the features of your four.
Speaker 2 (18:57):
O one K.
Speaker 5 (18:58):
Yeah.
Speaker 3 (18:58):
I've made phone calls with folks that I work with
directly to their four O on K providers to ask
the questions. Yeah, literally, yeah, what is your match? Do
you have a separate contribution bucket for your bonus or
variable compensation? Do you have a true up feature? Is
there an after tax spillover so you can do megaroth
backdoor convergence? These are conversations that you should be having,
You should have knowledge about so that you can capitalize
on the vehicle that is going to carry you across
(19:20):
the finish line, which is you're typically your workplace retirement.
Speaker 2 (19:23):
Can you put roth dollars into that four one k?
Speaker 3 (19:25):
So many forgot about that?
Speaker 1 (19:26):
So many people I'm I asked that question, like, I
don't that's a thing. Yeah, it's a thing. How do
you how do you maximize it? It's important to understand.
Here's the all Worth advice. Consistent contributions over a long
period of time can help fuel financial independence.
Speaker 2 (19:41):
Please know your.
Speaker 1 (19:42):
Four A one K coming up next, Protecting your loved
ones from financial scams.
Speaker 2 (19:48):
Boy do we hate scammers.
Speaker 1 (19:49):
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station listening to
Simply Money because am I all Worth Financial? I Meani
Wagner along with Steve Ruby. Wherever you go, whatever you
are doing, you should probably operate under the premise that
someone is actively trying to scam you, because well they are,
(20:12):
and if you are retired, or if you have a
loved one who is they are coming after you. There's
this crazy new stat the number of older adults who
lost six figures or more to fraud has tripled in
just the past four years. What do you need to
know about how do you protect yourself? Joining us as
our tech expert Dave Hatter from intrust it, this statistic
(20:36):
is alarming to say the least.
Speaker 5 (20:39):
Yeah, I agree, Amy, When you look at the scale
of this, both in terms of the number of people
who fall and prey to this and the amount of
money they're losing, it's really scary and really depressing, you know,
especially if you have older relatives that you might be
concerned about. So, I mean, the good news is you
have organizations like the FBI and the FTC capturing the
(21:00):
stats and reporting about it. But I think the even
worse news is, by any objective measure, when you look
at what the FBI in particular has to say about cybercrime,
they'll tell you they believe only a very small portion
of it is actually reported because in many cases there
aren't a report, There isn't a reporting requirement rather, and
many people are ashamed and embarrassed and don't want to
(21:20):
report it. So the number is probably much larger than
this because of the fact that folks don't want to
admit they've been scammed out of thousands of dollars.
Speaker 3 (21:28):
So why the uptick, Why is there such a huge
increase in the number of large dollar losses in scams?
Speaker 5 (21:36):
Well, Steve, I think there's a bunch of reasons for that.
First off, more people are spending more time online than
ever before. You know, we do everything online in our
digital society. We entertain ourselves, we educate ourselves, we enrich
ourselves through work and so forth, all online. You've got
more people spending more time online and less secure environments.
You know, like thirty years ago, most people, if they
(21:57):
were quote online on the Internet, they were probably doing
it at work where you had more security features than
you might have in your personal environment. And then on
top of all of that, you know you've got so
you've got more targets, more people online and less secure environments,
working from home, et cetera. And you've got more attack
vectors to get to them. Whether it's email, it's text,
(22:17):
it's social media, there's so many different ways to get
to people, and the scammers, especially thanks to AI powered
fraud like deep fakes and voice cloning and so forth,
are able to reach people at scale and create increasingly
realistic scams. And then some of it. Steve still comes
back to the old con man type angle. Right, You
(22:37):
get on a site, you strike up a rapport with someone,
possibly because they know a lot about you from day
that it's been stolen. Next thing, you know, your friends,
now you're in some romantic relationship where they're telling you
how they're making a bunch of money in bitcoin, and
you know they just con you out of the money.
So I think it's a combination of all of those things.
And you know, I appreciate you guys giving me the
opportunity to come on and try to warn folks about this,
(22:59):
because the most important defense against all of this, it's
just awareness that scammers are everywhere and you really can't
trust anything you see or anyone you meet online. It
could easily be spoofed and you could be getting socially
engineered into this kind of fraud.
Speaker 2 (23:14):
You know, Dave, I've seen statistics too.
Speaker 1 (23:16):
I've got you know, four teenagers, and they're just as
susceptible to getting scammed as older adults.
Speaker 2 (23:22):
They just look different.
Speaker 5 (23:23):
Right.
Speaker 1 (23:23):
My kids grew up with devices in their hand, and
so the scams that probably they're going to be more
susceptible to are going to come through those devices. But
let's talk about for someone who is targeting older adults,
it may not be coming through TikTok, but it's coming
out in some way.
Speaker 5 (23:40):
Yeah. Well, I think another key thing about the older
demographic is they are often going to have more money
to steal. You know, the types of tax and targeting
on younger people are typically different, and they understand that.
You know, your average twenty one year old probably doesn't
have a lot of money to steal. Your average sixty
five seventy five year old probably has a lot more
money to steal, which you know, consequently is also a
(24:03):
lot harder for them to replace at that age. So
you know, I think that's part of the targeting and
why you see this and then you know again it's
it's your standard romance scams, it's investment scams. One of
the things, like I said previously, that I think makes
this so devious and innovative on the bad guys part
is so much information has been leaked about so many
(24:25):
people through these giant data breaches. In many cases, if
I go to like a dating site or something, you know,
it's easy to create a fake profile, It's easy to
use a fake photo, or steal someone else's photo and
create a PERSONA be that person. I start talking to you,
maybe I target you or maybe you know you find me,
and then I look up some information on you because
I'm a professional scammer and I'm making a lot of
(24:46):
money at this, and I'm usually in a place like
you know, some third world country where I can't be
can't be arrested. There's no real, no real recourse to
do anything about this in so many cases, and then
you know, I just lead you down the rabbit hole
into whatever sort of scam I want to run on
you again. It's it's warning folks that anything you find
(25:07):
online can be easily faked, and there are conment out
there who are making enormous amounts of money scamming people.
And it's warning elderly folks too. Like Microsoft and Google,
believe it or not, are not going to call you
and say, hey, I think there's a virus on your computer.
Why don't you let me connect up to your computer
and fix that for you and then call them and yeah, yes, Steve,
(25:29):
use try and call them and see if you can
get any support. They're not calling you. Trust me, trust me. Yeah,
if someone asks you to pay and gift cards. It's
a scam. If someone tells you they've made a bunch
of money in cryptocurrency that you just met online, or
you're suddenly romantically involved in are there a soldier overseas,
it's a scam, right, And you can use these FBI
(25:50):
and f FTC resources where they put out PSAs on this,
you know, to educate yourself and raise awareness and you know,
share it with your older friends so that they're not
getting socked into one of these scams. Now, I'm not
saying you can't ever meet a friend or have a
romantic relationship online, just saying understand everything is easily fakable,
and these con men will social engineer you.
Speaker 3 (26:13):
You know, every time you're on my palms get sweaty,
my anxiety goes on. There's so much that we need
to be aware of. And you know, it's fantastic to
spread awareness about some of these issues. But let's talk
about you know, the at least the low hanging fruit,
key takeaways that you can use to protect yourself, red
flags to look out for that type of thing.
Speaker 5 (26:33):
Well as always, if it's too good to be true,
it probably is. If you suddenly fall in love with
someone you met online recently, and then they you know,
want you to invest in crypto or they suddenly need
to borrow a lot of money from you. My guess
is both of you, or or at least someone you know,
has been hit with Like someone takes over a Facebook
account and then says, I've had this happen to me friends.
(26:54):
Facebook account gets taken over. Well, I'm out of town,
I lost my wallet. Can you send me money? Right?
You know, just because you think you're talking to someone
you know, or you've suddenly built rapport with your soulmate online,
you know, you have to be extremely skeptical, you know,
if they want to isolate you, if they want money,
those are all strong red flags. Check out these FBI resources.
(27:18):
Go talk to someone else, you know, talk to a
trusted person you know, and say, hey, I'm in this
relationship now and they want me to do X, Y
or Z. Does that seem reasonable to you? Because, as
this article states, and these are based on stats of
actual crime reported, people are potentially losing tens of thousands
of dollars in some cases their entire life savings and
(27:39):
as an you know, retired person on a fixed income,
it's going to be really difficult to replace that, you know,
sense of urgency. You have to do something right away.
You touched on that before. Step unusual ways to pay.
They want gift cards, or they want Venmo, or they
want PayPal. You know, any play anything like that where
there's limited consumer protection should be a strong red flag, right,
(27:59):
because you're probably not going to have much recourse. If
you transfer a bunch of money to someone through Venmo
and then they disappear on you, I can almost guarantee
that you're not going to get that money back.
Speaker 1 (28:09):
I'm so glad that you brought up to sense of
urgency because that's the number one thing anytime I have
ever known someone who has been scammed.
Speaker 5 (28:15):
Right.
Speaker 1 (28:16):
I had a friend whose mom fell for that the
grandparents scam, that her granddaughter.
Speaker 2 (28:20):
Was somewhere and she need help.
Speaker 1 (28:22):
It was like and she later said, if I had
if I had taken the time to think through it,
I knew Ashley wasn't.
Speaker 2 (28:29):
In that I would have known better.
Speaker 1 (28:31):
But there's such a sense of urgency, and there always
is when it comes to these scams.
Speaker 2 (28:35):
So that's another great thing to keep an eye out from.
Speaker 1 (28:37):
Great advice as always, how to protect yourself and your
loved ones from scams.
Speaker 2 (28:42):
From our tech expert Dave Hatter.
Speaker 1 (28:44):
You're listening to Simply Money presented by all Worth Financial
Here in fifty five KRC the talk station. You're listening
to Simply Money presented by all Worth Financial, I Memi
Wagnera along with Steve Ruby straight ahead the day anger
of deferred interest. If you're attempted by that when you're
(29:04):
doing your holiday shopping this year, We've got a warning
for you. Okay, there are certain people who find yourselves
in a situation financially where you have more than you need.
It's a beautiful place to be, and then it becomes
I can't possibly use this money maybe during my entire lifetime.
Or maybe you've got kids or grandkids and you want
to be able to make a difference in their lives.
(29:25):
How do you gift in a way that's really meaningful?
Ours Advisor, Bob'spondseller are back joining us for this segment.
Speaker 2 (29:33):
Bob, this is a great place to be.
Speaker 4 (29:36):
Yeah, and this I've got a story to tell today
and this will be amy You're and Steve's opportunity to
evaluate my parenting skills. So you know, after being in
this industry for decades and spewing out a lot of
advice to people, and you hope that some of it's
actually good advice when it comes time to dealing with
(29:56):
your adult children. Now it's all right, Bob, mister financial advisor, are.
Speaker 2 (30:02):
You to talk and talked away exactly?
Speaker 3 (30:04):
Exactly?
Speaker 4 (30:05):
So, you know, my wife and I have three adult sons,
early twenties to almost thirty. So this is a story
about my Our middle son graduated from college, actually got
a pretty decent job making a good income, and I
had and this is kind of tying back into our
last last segment. I'm tracking him down for six months,
(30:26):
twelve months, fifteen months. Are you in your four to
one k? What's your match?
Speaker 2 (30:31):
Dad?
Speaker 4 (30:31):
I don't know. I don't know, and I'm starting to
get irritated, you know, and my wife and kid. You know,
we all have to deal with this. We eat, sleep,
and drink this stuff all day. Our wife and kids don't.
So you got to kind of pump the brakes on
the financial advisor stuff home a little bit. But I
hounded it, hounded him, hounded. I think I might have
used the word idiot a couple of times.
Speaker 2 (30:53):
So judgment, no judgment.
Speaker 4 (30:55):
Eventually, everything sounds good to me so far. Yes, So
eventually the summary plan description showed up. You know, I
made him pull out his laptop and pulled up the
site and he enrolled in the plan, and he figured
out what his match was and it contributed up to
the you know, the company match. It was like pulling teeth,
(31:16):
but we got it done. Fast forward to about, I
don't know, three weeks ago. He's over at our house
laying on the couch watching a football game with me,
and I see him holding his iPhone and he's got
his Fidelity app out and I'm like, what are you
doing over there? He goes, Dad, this is awesome.
Speaker 3 (31:36):
Watching it grow.
Speaker 4 (31:37):
Yeah, the market's been up, you know, nicely the last
two years. He's been just doing the basic blocking and
tackling like we talked about, and he's like, I can't
believe how much money I've got saved, and he and
his wife were able to buy their first home this year.
I contributed nothing to this other than you know, the
guy out to him, other than calling him an idiot.
Speaker 3 (31:59):
I called it. Yeah, he's he's used to that. But
but yeah, so.
Speaker 2 (32:03):
Gift though, is the financial knowledge.
Speaker 4 (32:05):
Right well, and that's why I wanted to tie this
back into the show you know, Amy that you and
Steve did last week that I thought was excellent, talking
about the importance of families actually sitting down with their
kids and and just the whole culture around equipping your
kids to handle money they don't get it in school.
You know, you shared yourself, Amy, it's kind of a
(32:28):
taboo topic among people. It's critically important, and I think
it's a vital job, you know, as parents to either
do it ourselves or hook them up with an uncle
or relative that knows this stuff or a financial advisor
that can help them. But we do need to disseminate
this information to our kids. And you know, I, you know,
(32:49):
going back to my days coaching baseball, people respond you know,
to incentives, and I do believe almost every person I've
run into, they they respond well to positive reinforcement for
things that they've done well, rather than ripping them for
things that they haven't done well.
Speaker 2 (33:09):
Yeah.
Speaker 4 (33:09):
So, and I saw that happen, you know, with my son.
So my wife will probably say it's all because of her.
Speaker 3 (33:16):
It probably is. And he saw it when he logged
into the Fidelity app and saws for one.
Speaker 1 (33:20):
Yeah, I mean financial literacy is I would say, hands
down the best gift you can give your children, whether
you can actually gift them dollars or or you're actually
gifting them money and you know, if you've got And
this is actually something that I've been thinking about lately,
teenage kids for Christmas, you know, exposing them to the
concept of ownership of part of a company. They might
(33:43):
actually get stock in a company for Christmas this year,
because I want them.
Speaker 2 (33:48):
To get into that fidelity app and start looking.
Speaker 1 (33:51):
At the fact that wait a second, my money doesn't
grow any faster when I'm getting paychecks and spending it
immediately than it possibly could if this money was actually
sitting here infested.
Speaker 3 (34:01):
Yeah. I think it's kind of funny because some folks
I work with they want to gift shares of stock
to adult children sometimes, and it's like pulling teeth to
get those adult children to open a brokerage account so
they can accept those shares. I've literally seen that, Like
I've been badgering them for a year. They still won't
do it. Why not, Well, I guess you get a
calm an idiot at some point.
Speaker 2 (34:22):
I like that approach. What about if your budget is
a little bit higher, you.
Speaker 3 (34:26):
Know, you could open a roth iray and fund that
as long as the child has earned income. That's certainly
an opportunity. You know, ten thousand dollars budget, let's say
maybe we could fund a five twenty nine for a
child or a grandchild. There's plenty of ways to give
money tax efficiently to loved ones. If you have a
pile cash sitting there, then you're able to do so
(34:47):
very easily. The annual exemption per year is eighteen thousand dollars.
You can gift cash to children or anybody for that matter,
without any kind of tax liability for either of you.
Speaker 1 (34:57):
Yeah, and if you're married, you can each gift right
that amount of money, and if they're married, you can.
Speaker 2 (35:03):
Each give it to both of them.
Speaker 1 (35:05):
So as you think about that, you know, if it's
eighteen thousand dollars, that's a sizeable amount of money that
you're able to gift to them every year, not paying
taxes on them, not paying taxes on So there's ways
to do this, and I know a lot of people
who I work with really light the idea of seeing
the impact. Right, you can wait until you're gone and
people can inherit that money. But also it's really nice
(35:25):
to see what they're doing with it while you're still here.
Speaker 2 (35:27):
Here's the all Worth advice.
Speaker 1 (35:29):
Make sure your financial gift is meaningful, manageable for your budget,
and then aligns with the recipient's needs or goals. Financial
education is huge here coming up next the trick retailers
are using all the time to try to get you
to sell it, maybe more than you can afford this
holiday season. You're listening to Simply Money presented by all
Worth Financial. Here in fifty five KRC the talk station.
(35:53):
You're listening to Simply Money presented by all Worth Financial.
I mean you Wagner along with Steve Ruby. For those
of you who are in the throes of your holiday shopping,
I'm not speaking East.
Speaker 3 (36:02):
No, you're not one at all.
Speaker 1 (36:03):
You've got weeks until you started nothing for Christmas.
Speaker 2 (36:07):
This stresses me out for you.
Speaker 1 (36:09):
Good, but whatever you do, you many people are already finished.
But listen as you're shopping, and many of us are
doing this online shopping. Now, when you're checking out right,
you'll see like here's the actual cost of it, or
a much lower cost right below it, and you can
pay this in five different installments. Many people don't ever
(36:31):
read the fine print. This makes me nervous, especially for
my kids, right because you're they're like, you know, they
don't have any money, they're you know whatever, and they're
buying things and it can look really appealing. Well I
don't I can't pay one hundred dollars for this now,
but I can pay twenty dollars and then twenty dollars
four more times after that, unless maybe you can't.
Speaker 3 (36:52):
Yeah, deferred interest can create massive problems. You get kicked
in the teeth with interest if you don't pay off
whatever you owe by the end of a set period
of time. It's charged all at once on the remaining card,
and the interest rates are extravagant on these things. The
idea is that, sure, I guess, maybe capitalize on it
(37:13):
if you one percent know for a fact that you
can afford to pay it. Ideally, just buy the thing
out right without needing.
Speaker 2 (37:21):
You can't afford it. You can't afford it now.
Speaker 1 (37:24):
Listen, back in the day, Sue Wagner loved the kmart layaway.
Speaker 2 (37:28):
I mean she loved the Kmart layaway, and so you know,
all the Christmas.
Speaker 1 (37:32):
Presents, she would and she would drive to kmart whatever
it was, once a week, once a month and pay
on that.
Speaker 2 (37:39):
That was a different way of looking.
Speaker 1 (37:40):
She couldn't afford it all up front, but the stuff
didn't leave the store and she eventually paid it all off.
Speaker 2 (37:47):
But this is a different way.
Speaker 1 (37:48):
This is the twenty twenty four version of give me now.
I'm not going to read the shine prints. Yeah, I'm
going to think I can pay it off, and back
to the example that I used before. Okay, maybe I
can't aford a hundred right now, but but then when
you start buying seven, eight, ten things, especially during the
holiday season, and you're looking at that little, the smaller
(38:10):
amount that you would be paying in installments, But all
of a sudden, if you're paying ten different things on
installment plans, you may not be able to do that.
Speaker 2 (38:17):
You might drop a ball, you might miss a payment.
Speaker 3 (38:19):
Yeah, and that's the problem. If you owe a dollar
at the end of the term, then all the interest
gets put on you. Yes, you have to pay it all.
Speaker 2 (38:27):
Not the interest on that dollar, not the last dollar.
Speaker 3 (38:29):
On everything that would have accrued over whatever period of time.
So don't don't fall into this trap. I mean, maybe
maybe use a credit card with the reward points and
then pay that off at the end of the month. Yeah,
that would be the ideal situation, because remember not anti
credit card as long as as long as you use them.
Speaker 1 (38:43):
Right, If you can't afford it, now you can't afford it,
don't buy it. Thanks for listening. We hope you're going
to tune tomorrow. We're taking a deep dive into Wall
Street sphere gauge. What does that mean for you? Even
listening to Simply Money presented by all Worth Financial Here
in fifty five KRC, the talk station
Simply Money News
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