Simply Money

Major Market Whiplash

Episode Transcript

Speaker 1 (00:00):
History, her history, another historic doing pivot moment, write a
final chapter, a story is being told.

Speaker 2 (00:07):
Fifty five KRC The Talk station.

Speaker 3 (00:19):
Tonight, Wild roller Coaster, swings on Wall Street, and some
perspective on how you should be looking at all of
it as.

Speaker 4 (00:28):
A long term investor.

Speaker 3 (00:29):
You're listening to simply money presented by all Worth Financial
Immi Wagner along with Bob Sponsller. There are market swings
and then there are market swings, and I think we
are experiencing the latter right now, Bob. And there's certain
days where I feel like, Okay, we really earned our
keep around here. And I would say, if you are
seeking us out tonight, this is a good way for

(00:53):
you to spend your time because you want real perspective
on what's going on and.

Speaker 4 (01:00):
What maybe you could or should or should not be
doing as an investor right now.

Speaker 1 (01:06):
Yeah. Good example of that is what happened between ten
am and ten thirty eight am yesterday. Okay, just to
put things in perspective, between ten am and ten seventeen am,
the S and P five hundred went up by five
point seven percent. That's in seventeen minutes. Why somebody put
a rumor out that ended up being a fake rumor

(01:29):
that President Trump was going to put a ninety day
delay on all these tariffs. The market shot up. What
does that tell you as an investor? That tells you
that this market is I think a loaded gun here
ready to take off as soon as we get some
any kind of resolution to this whole situation.

Speaker 4 (01:48):
Yeah.

Speaker 1 (01:49):
Now, what happened at ten seventeen when everybody figured out
that the rumor was indeed false. The market plummeted right
back down to where it was. It plummeted five point
seven percent between about ten seventeen and ten thirty eight am. Now,
if you're somebody sitting at home trying to gain this
and wonder what's going on, you're going to drive yourself nuts.

(02:10):
And I think that's unfortunately what some people are doing
right now. I hope whoever floated these rumors and trade
it on those rumors gets arrested and prosecuted because that's
a major market manipulation that somebody was engineering. And well,
I'll leave the rest of it there.

Speaker 3 (02:30):
Well, And from an emotional perspective, right, it's like, why
are you messing with us when we're down? It's been
tough enough as an investor already recently without putting you know,
some kind of fake news out there.

Speaker 4 (02:42):
You know that investors are are going to jump on.

Speaker 3 (02:45):
But you know, if you're a smart long term investor too,
you're not watching the minute to minute, half hour by
half hour fluctuations of the market because you will absolutely
drive yourself sane.

Speaker 4 (02:57):
I mean, there's just not a great thing for your
mental health.

Speaker 3 (03:00):
I want to take it to something that I was
thinking through yesterday. I had the opportunity to talk to
a number of investors that I work with, and you know,
my perspective is, how you feel about this right now
really depends on who you voted for in November. And

(03:21):
I am I can be on the phone with someone
and within a minute they don't even have to tell
me outright who they voted for.

Speaker 4 (03:28):
I know I can absolutely tell.

Speaker 3 (03:30):
And one of the bedrocks of the show and how
we approach things is the phrase, we're not red, we're
not blue, we're green. Right, We're not going to give
you any kind of a slant or political perspective on
what's going on. We're simply going to tell you how
we think it can affect your money. And I'm going

(03:52):
to take it a step further today and say you
should be saying, right, I'm not red, I'm not blue,
i am green, And that does not mean that you
cannot have your political opinions about this.

Speaker 4 (04:03):
But you need to check those opinions at the door.

Speaker 3 (04:07):
If they are making you feel like you should be
doing something different with your four oh one K, your
retirement savings, your long term goals, how you're invested timing
the market. If any of those thoughts are crossing your
mind right now, I would say check your political biases
right now and see if you still feel the same way.

Speaker 1 (04:28):
Amy, that is spot on, and I'm laughing because my
experience has been almost identical.

Speaker 2 (04:34):
Yep.

Speaker 1 (04:34):
I'm getting very few emails and phone calls from clients
right now, and I think the reason is we've talked
amongst ourselves as advisors in our Cincinnati office, the same
thing's happening with all of our clients in the office
in Cincinnati. Very few people are calling and panicking and
wanting to do something drastic, because by and large we

(04:56):
set them up with good long term financial plans where
we've managed volatility for seasons like this. But to your point,
my experience with the folks who have called in is identical.
Back in twenty twenty two, when the S and P
down by twenty percent and the Nasdaq was down by
twenty eight percent, I got three or four phone calls.

(05:17):
Who did I get those phone calls from people who
were absolutely certain that President Biden was going to run
this country into the ground. And like you're saying, I
know who some of those people are, and when the
phone rings, I know what they're gonna say. Yesterday, I'm
getting three or four phone calls from folks on the

(05:39):
other side of the aisle. I think that President Trump
is crazy, He's certifiably insane. Blah blah, blah, blah blah.
We all have biases, and to your point, Amy, if
we allow those biases to really dictate what we're doing
with our portfolio, we're gonna make massive mistakes that costs
US hundreds of thousands of dollars down the road.

Speaker 4 (06:00):
Yeah.

Speaker 3 (06:01):
These are the same people who in November, right, they're saying,
if this candidate gets into office, I'm getting out of
the market. Right, And we I think provide so much
historical context on you know, you can have a preference
for who's in the oval office I certainly understand that,
but pulling your money out or putting more in based

(06:21):
on who's in there went. We took it all the
way back to nineteen twenty six and said, you know,
it doesn't necessarily matter. The returns on the S and
P five hundred on average are about the same whether
there are Democrats or Republicans in the Oval office.

Speaker 4 (06:38):
So I just want you to have that perspective. And
a lot of this is political.

Speaker 3 (06:42):
You may not be thinking it about about it that way,
but that's what I'm seeing when I'm talking to people.
I think we have a lot of recency bias as investors,
and that means we go through something major and it
feels like the worst thing ever, and then we forget
all about it. We've actually been through tariffs with President
Trump before. Now I am not discounting the fact that

(07:03):
these are far greater.

Speaker 4 (07:06):
Far more impactful, far more widespread.

Speaker 3 (07:10):
But last time President Trump was in office, he did
en action tariffs, and how did the markets respond down
close to twenty percent? You know, I was twenty eighteen,
and you may have even forgot about that.

Speaker 1 (07:24):
You know, people forget about it because twenty three and
twenty four were really good years in the market, and
we just we all fall prey to recency bias. I mean,
you're a media veteran, amy you know what the news
cycle is like. There's so much news permeating through our
computer feeds, television screens, cable news all that by the

(07:47):
time we've digested one news story, there's a whole brage
of news stories coming within six to eight hours. So
we're it has conditioned us to be very short term thinkers,
and we got to put the pause button, you know,
on that kind of thinking. To your point on what
I think you really wanted to open up the show
emphasizing right.

Speaker 3 (08:07):
Yeah, absolutely, you're listening to Simply Money presented by all
Worth Financial I Memi Wagner along with Bob Spahseller. If
you are starting to feel anxiety, nausea kind of rising
up inside of you, if you were checking the headlines
or the markets, you're in the right place. We are
providing some historical perspective, some context for all of this.

Speaker 4 (08:29):
We would remind you first and foremost.

Speaker 3 (08:31):
To check your political biases before you do anything or
make any decisions regarding your money. And then I would
also say, listen the people who are freaked out?

Speaker 4 (08:42):
Now are the people who thought you could do no
wrong in twenty twenty three and twenty twenty four.

Speaker 3 (08:47):
Right, You build your boat when the waters are clear
for times when the storm comes.

Speaker 4 (08:54):
An example of that is if you were figuring out.

Speaker 3 (08:56):
What acid allocation to be in right maybe in your
floral twenty three or twenty twenty four, and the thought
cross your mind of oh, I'm going to go all in,
I'm going to be super aggressive because the markets are
way up right, Well, you're just responding to where they
are right now. Would you have made the same decision now?
Are you in the proper asset allocation? Because it shouldn't change.

(09:17):
It shouldn't change regardless of whether markets are slow and steady,
whether they are on a fantastic incline, or whether there's
choppy as we're seeing right now. So I think you
got to ask yourself right now, have I built my
financial boat to whether this storm and any other storm
that's coming my way.

Speaker 1 (09:36):
Couldn't agree more amy? And that's where you know, folks,
during times like this, you can kind of figure out
without painting too broad of a brush, whether folks fit
into one of two camps. Camp number one people that
have not planned, have not planned in advance, and they're
getting caught, you know, with their proverbial pants down, saying,

(09:56):
you know, what do I do now? What do I
do now? And they're freaking out and they can tend
to make irrational decisions. Camp number two. The folks that
we have worked with other fiduciary good fiduciary advisors in town,
you know, clients that work with them. They've planned for
these events. And this is why our phones are not
ringing off the hook. You stay diversified, you have a

(10:17):
good plan, and to your point, you know, you build
your boat to weather the storm in advance.

Speaker 3 (10:24):
Yeah, clients who I spoke to yesterday, you know, some
of them are are checking markets, most of them. One
of them said, I purposely haven't checked in the past week,
Like I just don't want.

Speaker 4 (10:34):
To put myself through it. I've been through things like
this before.

Speaker 3 (10:38):
I you know, remember what market volatility feels like, you know,
in in I feel like we're well positioned, you know,
and sometimes it's just the reminder of here are the
steps that we've already taken together right to position you
for this. And then some some historical perspective on even
though it feels like this time is different and this
particular circumstances might be different, but it is actually part

(11:01):
of a very normal market cycle. And I think taking
it back to you know, every three to five years,
what you can expect as an investor, is it twenty
percent pullback? Well, then why would you even invest? Right,
that's a that's a that's not a fun thing to
go through.

Speaker 4 (11:17):
Will you invest?

Speaker 3 (11:18):
Because on the other side of it, one hundred percent
of the time the market rebounds to new highs.

Speaker 1 (11:25):
Yeah, and even if your favorite candidate is in office
and you think the economy is sailing along, you know,
the average annual intra day market decline is fourteen percent.
That's average annual even if we think everything's great. So
you've said this, Amy, I've heard you say this within
the last three days, and I think it's great. I mean,

(11:47):
volatility is the price of admission. The key is having
the right level of asset allocation, so we can put
some controls on that volatility through basic asset allocation strap.

Speaker 3 (12:00):
Now, I do think it feels different if you are
someone who still has a paycheck coming in. Maybe you're
ten years, five years, twenty years away from retirement than
those who are already retired. We are going to talk
about that later in the show, but I think there
are different opportunities, different ways to think about that, depending
on which stage of life you're in. We're going to

(12:22):
get to that later in the show, but coming up next,
some healthy ways to look at your dollars that does
not involve checking your flour and K balance one.

Speaker 4 (12:30):
Hundred times a day.

Speaker 3 (12:31):
You're listening to Simply Money, presented by all Worth Financial
here on fifty five KRC, the Talk station ife KRC.

Speaker 5 (12:38):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.

Speaker 3 (12:56):
You're listening to Simply Money presented by all Worth Financial.
I mean you're along with Bob spawns Older. There is
a lot happening in the markets right now, and if
you happen to miss our show one day, you don't
have to miss any perspective that we have. We've got
a daily podcast where you.

Speaker 4 (13:11):
Just search Simply Money. It's on the iHeart app or
wherever you get your podcasts. Coming up at six point
forty three, a look at something that's.

Speaker 3 (13:17):
Happening right now that is incredibly irresponsible and it angers us,
and of course we're going to sound off about it.
Stick around for that coming up in just a few minutes.
How many times have you checked your portfolio lately? I
think people can fall into different different camps here, those
who are checking constantly and those who are putting their
head in this sand.

Speaker 4 (13:38):
Somewhere in the middle is probably the right balance.

Speaker 3 (13:40):
But I think it's really normal, Bob, when there's so
much going on that you can't control, to feel like,
what can I what can I control right What can
I be doing right now? And in these are really
conversations I'm having in my office as well, and I
think it's really helpful to think about what can we
be doing right now?

Speaker 1 (14:02):
Yeah, there are healthy things we can be doing, and
there are unhealthy things, you know that we can be doing.
And I think the point you're trying to make here, Amy,
and it's a great one. Let's focus on what we
can control, and this is a great time to do
some basic financial planning. And we keep using this metaphor
to build the ship to you know, be ready for

(14:24):
any new coming waves and storms that might be coming.
So let's walk through what some of those are.

Speaker 3 (14:29):
Yeah, I am proactively kind of reaching out to a
number of the investors that I'm working with right now,
just kind of talking to them. And one of the
first points of conversation I say is, let's talk about
your emergency fund.

Speaker 4 (14:42):
Right last time we met, here's what we had. Has
that changed significantly?

Speaker 3 (14:48):
You know, we would say three to six months of
critical expenses does not belong in the market. But I
would also say anything you're probably going to need for
the next year doesn't belong in the market.

Speaker 4 (14:59):
Right, So if you you are someone who is.

Speaker 3 (15:01):
Retired, you're pulling distributions out of that account. It becomes
incredibly important to have a really well funded cash reserve.
It's a strategy, right to keep you from then having
to lock in these losses when markets are all over
the place. So again it goes back to kind of
building the boat before the storm. But you know, clients

(15:22):
who I've spoken with who have well funded emergency funds
are like, Yep, we talked about this, we thought about this,
we prepared for this, we are well funded and cash reserves.
We're not going to take any distributions right now, right
And that's a great way to not have to lock
in these losses and let them have a more permanent impact.

Speaker 4 (15:40):
On your long term financial outlook.

Speaker 1 (15:43):
Yeah, and even for the folks that don't have that
three to six months worth of living expenses and cash
needs tucked away in a safe emergency fund in advance
and now had to go through some of this volatility.
Even for folks that are in a sixty percent stock
forty percent bond portfolio, uh, where you know, you realize now,
you know, I really do need to, you know, do

(16:05):
my emergency fund. There are ways to sit down with
your advisor within those diversified portfolios and pick out things
that we can sell now, i e. Bonds that are
maybe up for the year, where we can move some
of those type of things, you know, to those cash needs,
that cash bucket that we're talking about, without having to
sell stocks while they're down there there. There are ways

(16:28):
to do this important emergency fund planning exercise. Even if
you didn't one hundred percent perfectly prepare for advance, but
you've got to sit down with your advisor and be
strategic and selective about how you go about that because
it might have some return impacts. Tax impacts are important,
you know, it takes some planning to do that.

Speaker 4 (16:50):
Yeah, and I think the best smartest.

Speaker 3 (16:53):
And I would also say most successful investors are consistent.
They're just consistent in everything that they do. You know,
they keep an eye on the emergency cash. They are
dollar cost averaging into the markets regularly, regardless of going
at what's going on. And they also have a regular
budget that they live off of. Maybe it's not a

(17:14):
color coded spreadsheet. I'm not advocating for that, but they
pretty much know what they spend. If you don't know
what you spend, where your money is going. If you
are one of those people who kind of in the
back of your head at the end of the month
are like, where did all of that go, it's a
great time to revisit your budget. The r word recession

(17:34):
is being thrown out there all over in the headlines
right now.

Speaker 4 (17:37):
I do not have a crystal ball.

Speaker 3 (17:38):
I do not know how long these tariffs will go
on or if that might be where we land. But
what I sometimes see with people is you spend a
lot when you feel pretty good about things, and then
when you get a little nervous, you tighten your belt.

Speaker 4 (17:52):
That's not consistency, right.

Speaker 3 (17:54):
You should be spending the same on a budget that
you have determined works for you and your family long term.

Speaker 4 (18:02):
And if you don't know what that is, now's a
great time to get one.

Speaker 1 (18:05):
Yeah. One of the biggest things that surprises me when
I meet with clients, you know that are coming into
the office, new clients, or how many people have zero
idea of how much they spend. And I'm not talking
you know, it's irrespective of your net worth. People just
they tend to spend what they have coming in and
they really don't think about it. And when you start

(18:26):
to think about retiring and have to have your portfolio
and social Security replace your paycheck, you know, the you
we can talk about tariffs, interest rates, market suctuation all
day long. The number one thing that is going to
determine the viability of your long term financial plan is
how much you spend period yep. So again, regardless of

(18:50):
what's going on in the headlines, this is a great
time to just take stock of what your family budget
actually is and break it down between the have to
items and the want to or discretionary you know items.
It's a critical and most important part of overall financial planning.

Speaker 3 (19:08):
And hey, for those of you who are still working,
the stock market is on sale right now.

Speaker 4 (19:14):
You know, I get it. You're looking at your four
one K balance and it's down.

Speaker 3 (19:17):
But this is actually a great buying opportunity to get
shares at a discount.

Speaker 4 (19:24):
So see it for what it is, right.

Speaker 3 (19:26):
You know, I'm a Warren Buffett fan girl, and one
of his my favorite quotes of his is be fearful
when others are greedy, and greedy when others are fearful. Well,
there's a lot of other people right now who are fearful.

Speaker 4 (19:38):
It might be your turn to be greedy.

Speaker 3 (19:40):
And again, we always talk about don't let emotions kind
of dictate decisions, but I think it's important to see
this as the opportunity that it is. In addition to
even roth conversions things like that, right you're able to
convert more shares at a cheaper price right now, at
a cheaper tax bill. I had this conversation with someone yesterday.
They're like, oh, I never thought about it that way.
So there are also some opportunities that you can take

(20:02):
advantage of Right now, here's the all Worth Advice.

Speaker 4 (20:05):
The market. It's going to do its thing.

Speaker 3 (20:07):
We have no control over tariffs or Wall Street or anything.
But we can control what we can control, and that
is our own financial picture, our financial plan, and our
outlook on what we're going to do coming up next.
There are kind of three types of investors we typically
see in markets like this. We're going to have to
ask you to hold up a mirror and figure out

(20:29):
which category you fall into. You're listening to Simply Money
presented by all Worth Financial here on fifty five KRC,
the talk station.

Speaker 4 (20:37):
An iHeartRadio station.

Speaker 3 (20:42):
You're listening to Simply Money presented by all Worth Financial.
I Meani Wagner along with Bob's Spondseller.

Speaker 4 (20:46):
You know, if you've looked at.

Speaker 3 (20:48):
Your portfolio in the past few days, few weeks, you
may have had one of three reactions. Right, You're panicking,
You're paralyzed, or maybe there is just a well it
is what it is.

Speaker 4 (21:02):
I'm staying the course. If you have no idea what
I felt?

Speaker 1 (21:06):
What if I felt all three of those at one time?
What can you do for me today?

Speaker 3 (21:11):
I think that might be the most normal response too, Right,
but you know, I think it's important.

Speaker 4 (21:17):
I'm a big fan of self awareness in all parts of.

Speaker 3 (21:20):
Your life, right, but I think you have to be
really self aware about what kind of an investor you are,
which can then help you make this or you know,
not make bad decisions and maybe overcome your your normal
way of thinking. So this is a pull out the
mirror or walk into the bathroom and stand in front
of the mirror and.

Speaker 4 (21:38):
Take a good hard look at reality.

Speaker 3 (21:40):
We're going to walk you through the three options and
you kind of figure out for yourself what kind of
person is staring at back at you in that mirror.

Speaker 4 (21:47):
And the first is the panic seller.

Speaker 1 (21:52):
Yeah, this is the person that you know, this checking
their you know, four oh one K account every twelve
minutes and they see a seven percent drop and they think,
get me out, get me out, sell everything I'm going
to cash. Let me know when the coast is clear
and the world is peaceful again, and then I can
get back in. And that's that's a totally understandable you

(22:15):
know reaction. People just want to stop the bleeding and
take a deep breath and relax. The problem is you
usually lock in your losses then and then You've got
to be right twice, which is very difficult to do.
And those are the kind of mistakes that we work,
you know, to help people keep from making.

Speaker 3 (22:35):
If you had the perspective right of I'm going to
take my money out and then I'm going to put
it back in, or I'm going to.

Speaker 4 (22:39):
Get into this sector and then I'm going to get
out of that sector.

Speaker 3 (22:41):
But you were largely not only a panic seller, You're
a market timer. You're a lot of things that can
be really bad for a long term investor. Bob, you
and I were having a conversation within the past few
days of you know, kind of two thousand and seven,
two thousand and eight, two thousand and nine, that financial
crisis for people who you know, went fully to cash
then had to make the decision about, Okay, when do

(23:02):
I get back in, and if you were to run
the numbers right next to each other, right of those
who had just stayed in the market, regardless of the
panic that was happening during that time, and for those
who cannot remember.

Speaker 4 (23:14):
Our financial system looked like it was crashing.

Speaker 3 (23:17):
Major banks were going up in flames during that time.

Speaker 4 (23:21):
Markets who were in a free fall. People will worried
about their jobs.

Speaker 3 (23:25):
It was not a fun time on main Street or
on Wall Street. Yet, if you had ridden it out
right and there was a graph of what kind of
returns you may have gotten through the years as opposed
to those who got out and got back in in
Bobby and I have done the research. We've seen the research.
You would come out ahead if you just would have
stayed the course.

Speaker 1 (23:45):
You're one hundred percent right, ay, full disclosure. I did
this with a big chunk of my own personal money
back in two thousand and seven, two thousand and eight,
and I think that's the discussion you're referring to. So
you're trying to be kind to me, but I'll put
it out there. I it. I went to cash, you know,
and I felt great about it at the time, But
I also back tested the numbers of what I had done,

(24:08):
what would have happened if I had just let the
darn thing alone and rebalance and reallocate. And you've already
made the point if you would have just kept your
hands off of it, if I would have done that,
I would have had more money. Now. It felt good
protecting that downside decline at the time.

Speaker 4 (24:25):
Short term, short term pain relief.

Speaker 1 (24:28):
You look up three to five years later and you're
kicking yourself for what you missed out on.

Speaker 4 (24:32):
Yeah, and I think you know.

Speaker 3 (24:33):
The reminder here is if you miss out on just
the ten best days in the market over twenty years, right,
and we've done the research on this, your returns on
average are cut in half. You know, in Bob, we
do the show not because we say we've made all
perfect decisions, but because we are really transparent about Hey,
learn from our mistakes too. And I think that's really

(24:55):
brave of you to share that perspective because we've all
been there.

Speaker 1 (25:00):
We're all trying to help, We're all trying to help
one another.

Speaker 4 (25:02):
Yeah, absolutely, absolutely so.

Speaker 3 (25:04):
In addition to the panic sellar, there's also the frozen
fence setter, the ostrich that puts their head in the ground.

Speaker 4 (25:13):
And does nothing.

Speaker 3 (25:15):
Not because necessarily you're being disciplined because you are so
afraid to make a move and you are absolutely overwhelmed.

Speaker 1 (25:25):
Yeah, the frozen fence sitter. You know this is not
good either. And here's what we mean by that. Now,
when you when you experience market volatility, now it's the
time to reassess your true tolerance for risk stress tests
your current portfolio, and when we get that inevitable bounce
or recovery or whatever you want to call it is

(25:47):
coming at some point you want to take stock at all, Right,
what did I do wrong leading up to this last
period of volatility, and how do we make some subtle
adjustments to get out in front of it and take
advantage of some of the opportunities that are there now
and also avoid making some of the same mistakes again.

(26:07):
So now's a great time to be active, not passive,
sit down with your advisor and really take good stock
and an honest evaluation of what you're doing right now
and some changes that could be made to improve things
moving forward.

Speaker 3 (26:21):
When you mentioned sit down with your advisor, if you're
not someone who has worked with an advisor in the past,
and you are finding yourself in either one of these camps,
either feeling like you need to do something or feeling
like you're not going to put money into your flour
one k anymore, you're not rebalancing, You're going to stick
your head in the sand, and hopefully when you peek
back out in a year from now, the skies are clear.

(26:42):
If you are either of these people, I think you
would be incredibly well served by finding a fiduciary financial
advisor to talk you through this. You know, we've said
there are some silver linings in this situation, some opportunities
for investors here.

Speaker 4 (26:57):
You may be missing out on those.

Speaker 3 (27:00):
Ever built a boat for these financial storms, in which
case it's time to get started.

Speaker 4 (27:05):
So you know, if you're in.

Speaker 3 (27:06):
Either one of these camps and you're feeling overwhelmed right now,
rather than continuing to sit on the sidelines, the frozen
fence sitters out there or the panic sellers, right before
you jump off that cliff, please please get another set
of eyes on your situation. You know, I've said this
many many times before, but I might I think my
number one job is to make sure that investors are

(27:29):
not making financial decisions that they cannot recover from. If
I can talk you back off of that proverbial cliff,
I have done my job.

Speaker 4 (27:37):
And I got to say, Bob, I haven't talked to
anyone in the.

Speaker 3 (27:40):
Past few weeks that are on the cliff that I
work with, and I'm really grateful for that.

Speaker 4 (27:45):
And it's because they've.

Speaker 3 (27:46):
I think, been well educated, you know, because they've been
partnered with us for a while and they understand, right
this is kind of a normal part. Maybe not necessarily
the tariffs or what's happening this time, but they underst
stand that market turbulence is a pretty normal thing.

Speaker 1 (28:04):
What you're talking about right now is the third category
of investor, and that's what we call the disciplined allocator.
These are the people that have a plan, that meet
with their advisor. They prepare for things in advance, so
none of this you know, current headline turbulence stuff is
throwing things off course. They're not making emotional decisions. They're

(28:24):
working as a team with their advisor. And you know
Andy Stout, our chief investment officer and his team. When
we all can work together and talk through these things
and build a plan based on your unique goals and
unique situation, it works really, really well. And that's the
client you're talking about right now.

Speaker 4 (28:46):
Yeah.

Speaker 3 (28:46):
I saw some research years ago that really stuck with me,
and it said, you have your relationship with money.

Speaker 4 (28:54):
Most of us by the time we're seven years old.

Speaker 3 (28:57):
So if you're feeling a certain way, it's not necessarily
that you should be kicking yourself in the pants for
feeling that way. It could be ingrained and go back decades.
But understanding that that's the kind of the way your
brain is programmed to think about money can help you
not necessarily act on that, or at least make sure
you get someone else's voice in your head before you

(29:20):
make some bad financial decisions.

Speaker 1 (29:22):
Feelings are normal and healthy. We all have them. It's
good to have feelings and thoughts and everything. That the
key is to not always act on those feelings. And
that's why having a good objective, second set of eyes
on your situation that could take some of those feelings
and emotion out of the decisions usually serves everybody pretty well.

Speaker 3 (29:44):
Look at doctor Bob here telling us about feelings.

Speaker 4 (29:48):
I love it, but it is It's an excellent point
you're making. Here's the all Worth advice.

Speaker 3 (29:53):
Yeah, when in doubt, zoom out right. The market is
volatile in the short term over time, though, it is
a wealth building machine for those who are disciplined investors.
Coming up next, a strategy that provides no value to you,
only fear. You're listening to simply money, presented by all
Worth Financial here on fifty five KRC.

Speaker 4 (30:12):
The talk station.

Speaker 2 (30:14):
Quote this is gone go. We're reading this little two
genders order, an immigration crack English, the official no tax
on drips, the baby common sense has become a copulf
of America.

Speaker 1 (30:27):
This is real.

Speaker 2 (30:28):
The people elected me to do the job, and I'm
doing it.

Speaker 1 (30:31):
America is back the Messi's created Golden Age, a short
time in office.

Speaker 2 (30:38):
What happens next, happens year just begun. Fifty five KRC
the talk station.

Speaker 5 (30:44):
Most people that buy the wa it's not the voting
that we have to fear, it's the counting.

Speaker 2 (30:47):
Fifty five KRC the talk station.

Speaker 3 (30:59):
You're listening to, you simply when you're presented by all
words financial Imami Wagner along with Bob sponseller.

Speaker 4 (31:03):
You know, I often ask you.

Speaker 3 (31:04):
Have a financial question that's keeping you up at night.
I think most people might at this point. But if
you need a little help, we're here to help you.
There's a red button you can click on while you're
listening to the show. It's on the iHeart app. Record
your question. It's coming straight to us. I have a
feeling if you're thinking it or feeling it, probably hundreds
of others are.

Speaker 4 (31:23):
So you'd be helping out a lot of other people too.

Speaker 3 (31:25):
You know, we talk about strategies all the time when
it comes to your money strategies to help you achieve
financial freedom, to make work an option someday, not an obligation.

Speaker 4 (31:38):
There is a strategy.

Speaker 3 (31:39):
Ask someone who has historically kind of been part of
the media.

Speaker 4 (31:44):
Is using and it's like poison for you.

Speaker 3 (31:47):
And that is scary headlines because what you have to
understand is their goal is not to educate you, to
partner with you to make sure you're making smart long
term decisions. Their only goal is for you to click
on that article because it helps them sell ad revenue.

Speaker 1 (32:05):
Yeah. And the other part of that is people that
tune into these financial shows and just watch them add
nauseum all day long. I mean, let's face it, this
is normal psychology. Everybody wants an edge, everybody wants to
be smart. Everybody wants to have bought at the bottom
sold at the top. Everybody wants the next great stock pick.
And Amy, I don't have to tell you how the

(32:26):
media works. You're a season pro at this. But isn't
that how the whole media model is built. Feed the
people what they want even if it's not good for them,
and they'll keep watching.

Speaker 4 (32:36):
Yeah, yeah, very much?

Speaker 3 (32:38):
Is you know? And I've shared before, you know, back
in the days when I was a general assignment reporter, right,
and I would do a lot of research on a
story and work on it all day long, and you know,
have a very fair balanced story. Then there would be
other people that I would have to kind of show
that script to and how they would tease it or

(32:58):
talk about it maybe before it came on and I
and then I would always be like, well, why are
we saying that, right, that's a little over the top
or whatever. So understand, that's really part of the thinking
that goes on here. And we are absolutely seeing this
play out in the headlines right now. I've seen and
even just this morning, Bob I went on to I'm

(33:18):
not going to say which website, but it's one that
you and I get on a lot, and I think
a lot of people do.

Speaker 4 (33:23):
Literally, I took a screenshot of it.

Speaker 3 (33:25):
Because on the same screen at the top was a
headline predicting markets are going to go down eighty percent,
and then at the bottom right same screen, it was
things I think are going to shake out in the
near term and we're going to get back to relatively
calm waters. If you're an investor, how the heck do
you make heads or tails of that when the same publication,

(33:47):
back to backstories is telling you two incredibly different things.

Speaker 1 (33:53):
No, you're right, you can't make sense of it. I
mean the one that I'm laughing at Friday afternoon after
the markets, you know, our good friend Jim Kramer went
on went on the air and basically said, Monday, we're
talking about, you know, Monday, this week is going to
be another Black Monday and the market will go down

(34:14):
twenty percent. I mean, he just stated it as fact
that is going to happen. And this is what people are,
you know, subjected to having to listen to. And to
your point, how do you make sense of any of that?
If that's all the stuff that you're listening to. Couple
other headlines, just to rattle a few off that we've
seen within the last forty eight hours, opinion, a fifty

(34:35):
percent correction is probable. Why this veteran stock trader is
one hundred percent in cash. The next one, investors should
brace for another seventy eight percent drop in the S
and P five hundred. The fear gauge, you know, sores
to a rare crisis level. What this means for stocks.
You know, this time it's different. You know that those

(34:57):
are the four most dangerous words, you know, I think
for investing this time is people that buy into that
usually lose a lot of money.

Speaker 3 (35:08):
As though I'm listening to you talk about those headlines,
I would say one of them I almost kind of liked,
and that's the one that started with opinion, because at
least at the front of it, at the top of
the headlines, before you read anything else, you understand, this
is someone's opinion. All of these articles are someone's opinion,
and I think there should be that disclaimer at the

(35:29):
front of all of them. You're going to find someone
who can tell you on any given day a week
that the sky is not blue or whatever. Right, you know,
those people they can find anything to argue, you know.
And there's certain people who writes these headlines that are
perma bears right. There are always people who are looking
for the next recession. I heard a funny quote recently
and it says, you know, certain economists have predicted twenty

(35:51):
two of the last three recessions correctly, you know, and
it's like they're always calling for a recession, so you're
going to get it right every once in a while
when we actually have one. But if anyone was paying
attention on a tally sheet, you've called for it twenty
more times than we've actually had it. But those people's
headlines don't say opinion and also disclaimer later. This person
has also talked about a recession thirty five times in

(36:14):
the past three years. We're missing that context absolutely.

Speaker 1 (36:19):
I mean, even a broken clock is right twice a day, Amy,
And I think two quick points I want to make
about all this headline stuff. Number One, these shows are
designed for folks that are swing trading, day trading their portfolios.
These are short term trading ideas that really aren't going
to serve the vast majority of investors in long term

(36:42):
you know folks out there. And then number two and
almost as irritating, a lot of these people get on
and talk their book Amy. If they're short the market,
they want you to think the market's tanking because they're
making money as the market goes down. And when they
talk about individual stocks that I would buy by bye
bye bye today, they're in them. They want to go up,

(37:04):
and they make money if they go up, So they're
trying to talk everybody else into buying the stock that
they're already in. You've got to be real careful about
this stuff.

Speaker 3 (37:11):
You know, as I'm listening to you to say this,
I'm thinking what you need to do if you're someone
who does engage with these headlines is ask yourself what
is their angle right?

Speaker 4 (37:20):
What is their angle?

Speaker 3 (37:22):
Do they have an angle in this before you even
think about whether you might act on what they're saying.

Speaker 4 (37:26):
Here's the all Worth advice.

Speaker 3 (37:27):
Any good long term financial plan is created based off
of so many factors, none of which none of them
are headlines. Coming up next, more perspective for those who
are either still working or in retirements about what all
of this tariff talk and market volatility might mean for you.
You're listening to Simply Money, presented by all Worth Financial
here on fifty five KRC.

Speaker 4 (37:48):
The toxtation.

Speaker 2 (37:49):
When it comes to the news.

Speaker 3 (37:51):
Corporate needs you to find the differences between this picture
and this picture.

Speaker 2 (37:55):
You won't have any trouble finding the differences.

Speaker 4 (37:58):
They're the same picture.

Speaker 2 (38:00):
Every day is different, very different. The store is a
little bit different.

Speaker 1 (38:03):
Different things are happening.

Speaker 2 (38:05):
Every day, every hour is different, so it's a little
bit different, different from what it was from just an
hour ago. It's the source source that's always the same,
always been the same, the same thing.

Speaker 6 (38:16):
And I like this fifty five KRC the talk station.
The government can be summed up in a few short phrases.
If it moves, tax it, if it keeps moving regulated,
and if it stops moving subsidized.

Speaker 2 (38:27):
Talk about it here fifty five KRC the talk station.

Speaker 3 (38:35):
You listening to simply money presented by all Worth Financial,
I mean you Wagner, along with Pop Spondeller.

Speaker 4 (38:40):
Well Bob.

Speaker 3 (38:40):
I think it is our job, first and foremost to
provide so much perspective, context, historical perspective when there are
chopping markets. I also do not ever want to turn
a blind eye to what people are actually feeling. And
I do think that where we are with this market
volatility feels very friends to someone who is working who

(39:03):
is maybe years away from retirement, their paycheck is still coming.
In versus someone who is retired on fixed income is
looking at how the levels and their investments has changed
and trying to figure out what is the real impact
this is going to have on our lives.

Speaker 1 (39:23):
Yeah, and we kind of made fun of somewhat of
these feelings and emotions in the last segment, but we
also stated that these feelings and emotions are real and
they're normal. And Amy, I think the point you're making
here to you know, as advisors, that's why we're here
to walk people through these kind of things and to listen.

(39:44):
And nine times out of ten, we can listen to
our clients, listen to their fears, their dreams, everything they're
thinking right now, and then help walk them through what
do we do about it to navigate through these turbulent times.
That's the reason we have jobs, Amy, to help people
do that.

Speaker 4 (40:03):
Yeah, some practical advice here.

Speaker 3 (40:05):
If you are someone who is still working, rather than
not putting money in your four one K because of
the volatility, your opportunity might be to put more money
in right to buy these positions, these stocks, these investments
as a discount. If you are someone also who's maybe
making a little bit less this year and you have
a significant amount of money and attacks deferred account, it

(40:25):
might be a great time to look at roth conversions
right on the flip side.

Speaker 4 (40:29):
If you are retired.

Speaker 3 (40:31):
And concerned, this is a great time to check your
emergency cash reserves to look at is there a way
where we can maybe not take some distributions and lock
off these losses to look at your asset allocation. Right,
Maybe you chose what you were invested in when markets
were way up in twenty twenty three, twenty twenty four,
and now you're feeling that burn. It's a good time

(40:53):
to reassess all of these things. So there are things
that you can do as an investor, regardless of what
age or stage you're at, in order.

Speaker 4 (41:01):
To make sure that you are taking care of yourself
right now.

Speaker 1 (41:04):
And do all those things with a good fiduciary advisor
so that you're making those decisions and making those moves
in the most tax advantageous manner possible and without making
decisions based on fear. Those are the things that can
really derail you during times like this.

Speaker 4 (41:22):
Yeah, excellent point, excellent way to end the show. Thanks
for listening.

Speaker 3 (41:26):
You've been listening to Simply Money, presented by all Worth
Financial here on fifty five KRC, the talk station. Give
even greater access to the American people front and center.

Speaker 1 (41:36):
Every hour, every day that you think you've seen it all,
something is said, what's actually happening?

Speaker 2 (41:41):
If something is happening, historic transparency.

Speaker 1 (41:45):
Something in our city and order back to something in
our country.

Speaker 3 (41:48):
What is happening in our country, something in.

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Our world toward feasts are happening, Checking in all day,
all day long.

Speaker 1 (41:55):
It's always something.

Speaker 6 (41:56):
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