Episode Transcript
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(00:18):
Good morning, and welcome for anotherepisode of Let's Talk Money. It's been
twenty eight years I've been here foryou, folks, and I'm telling you
you hear me say this often.I can't get enough of you. I
truly enjoy doing the radio. Iget energized. I love having you on
the other side of the mike.I can't begin to tell you just how
(00:41):
much it means to me to beable to help get you pointed in the
right direction somehow, some way.You need to get pointed in the right
direction. You need listen. Youget one opportunity to retire, you need
to be prepared. That's what I'mhere for. So if you have any
questions, any questions whatsoever, giveus a call. One eight hundred eight
(01:02):
two five five nine four nine oneeight hundred eight two five fifty nine forty
nine, any questions at all.Zach Harris, my long term producer,
is ready willing and able. Weyou know, I've been saying for months
I think that I wanted to geta new spot drawn up, and we
(01:23):
finally did that, Zach, Sothank you, and we'll get a little
used to it, because Zach isgoing to be part of bringing you in
with music and so forth. AndI can't thank my colleagues enough. Over
the past couple of weeks, I'vehad my son Ryan Harmony Marty helped do
the radio. Give me a littlebreak every once in a while. You
need it as energized as I getworking seven days a week. Listen,
(01:48):
I've been working since I was elevenyears old, and you know, working
seven days a week, it's McDonaldsay, I deserve a break today every
once in a while, and speakingand working a long time. We're going
to talk about a Baron's article thismorning. I was just Here's what it's
like to work in your eighties wasthe front page of this week's Barns.
(02:13):
It's a great, great read,and it starts so off, believe it
or not, with a professor fromguests where folks Hudson Valley Community College,
Fred Sternisa, who is in hiseighties teaching young people how to get by
(02:35):
in the world. He's retired afew times. It was just a great
positive article. I'll talk about thatlater. Because a lot of people are
working, and it's not to workto make ends meet, although there are
a bunch of people that need towork to make ends meet. That's why
I'm here, as you know,to hopefully, hopefully, if you listen,
(02:59):
over time, you won't need towork in retirement in order to make
ends meet. That's that's that's notthe that's not what we want you to
do. We want you to beprepared so you can retire have the quality
of lifestyle that you want. Butsometimes people as they age up in mature
in life, they're in their seventiesand eighties, they're just bored. Some
(03:21):
people just want to keep keep going. They you know, gives them something
to do. Get out of bed, you know, get ready dressed,
out of the house, meet people, be with people, make their their
their brains tick. There's a lotof reasons why people want to work.
So we'll maybe in the second halfof the show, we'll we'll talk about
(03:42):
that article. It's a great article. And if you haven't picked up this
week's Barons yet, look for afront page front page article one eight hundred
eight two, five five nine fournine one eight hundred eight two, five
fifty nine forty nine. Any questionswhatsoever, give me a call. I'll
summarize the week for it. China'sCountry Garden made two debt payments to overseas
(04:08):
investors to avoid default. Believe itor not, that's big because you know,
so many things are happening in China. We never really know what to
believe what not to believe. Butat least at least they're paying their debt.
It's a big company, folks.In China's number two in the world.
Remember our GDP is in the lowtwenty trillion dollars range and they're in
(04:30):
the mid teen range. And thenyou know number three is less than five
trillions. So China is a forceto be reckoned with you. Hear me
say that often, and that's whythere's always talk about China. Oil prices
rose after Russia and Saudi Arabia extendedI'll put cuts in this great country of
ours. The United States government sackscut the probability of a recession to fifteen
(04:55):
percent. They were at twenty percent. So this week they came out and
said the chance of a recession isfifteen percent, not twenty percent. That's
good news, folks. But theother side of the coin, good old
Mike Wilson of Morgan Stanley warrened thattraders were too optimistic. Well listen,
folks, he's been wrong through thiswhole rally. And I know people who
(05:18):
work at Morgan Stanley and they sayhe is just a Debby downer. Now
he's been writing the past. I'mnot saying this man's a brilliant mind.
What I'm saying is you have toyou have to look at all the stats,
all the research that you do andput it together, because you got
(05:41):
some way out there to the rightand some way out there to the left.
And I'm not talking politics. I'mtalking their outlook for the economy and
their outlook of where they feel thestock market will head. So this week
you have Goldman Sachs kind of sayingthat the chance of a recession is down,
and Morgan Stanley is Mike Wilson warnstraders that they're too optimistic. And
(06:04):
then you had, you know,stocks rows, and then they fell on
inflation concerns and fears China, youknow, put a wrinkle in Apple's share
price. Ample was down six percentsince Wednesday. So for the week,
the Dow fell point seven five,the SMP off one point three, nas
(06:26):
nack down one point nine three,almost two percent. So it wasn't a
great week in the markets. Butthat's okay, stocks need to take a
breather as well. One eight hundredeight two five, five, nine,
four nine. Give me a callany questions that you have. Let's kick
off the day with Jeff in Greenville. Hello, Jeff, heay, Good
morning, Steve. How are you. I'm doing wonderful. How about you
(06:48):
today? Oh? Excellent, quickquestion. I think I know the answer
anyway, but I keep on hearingall these advertisements how you can transfer your
IRA A into physical gold assets.I'd like to get your spin on that.
Yeah, be careful, you know. I give this statistic often if
(07:13):
over the last fifteen years, andthere's been a lot of reason, Jeff,
you have to remember, gold tradeson fear and greed. Fear that
the world's coming to an end,which it hasn't. I don't think it's
going to and greed when they seetheir share price go up. If you
go back just the two thousand andeleven gold peaked almost at two thousand dollars
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announced, and then it fell allthe way down to the eleven hundred dollars
announced range range. And here wesit here today at nineteen eighteen. The
high point over the last year wastwo thousand, forty eight dollars announced gold
year to data is up five pointfour to two percent compared to the S
and P five hundred up sixteen percent. So the benefits of an IRA Jeff,
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is that you can literally have awell diversified portfolio and you can include
gold in that. I'm not sayingthat people shouldn't have gold as part of
their asset allocation. They absolutely should, but it shouldn't make up the bulk
of their portfolio. There's just noreason why people should load up on gold
these Gold does not have any intrinsicvalue, It does not pay a dividend.
(08:24):
There's such very little use with gold. Most people buy gold as jewelry.
Other people give gold as gifts,especially on the Pacific rim those countries,
it's very well known that gold isgiven as gifts instead of cash.
And when you put gold in yourportfolio, as they said, a lot
of people start buying gold when theythink that things are bad, they're going
(08:48):
to get uglier. If you lookover the last fifteen years Jeff. Fifteen
years, year in, year out, the S and P is up eleven
percent a year year in year out, ASTAC is up sixteen percent year and
year out. I bring up Nanstackbecause it's our top holding in our portfolios.
Our clients have had stellar returns becauseof our outlook. When you look
(09:11):
at bonds two point six percent goldover the same time period six percent.
This is why most investors need awell diversified, well thought out portfolio.
The answer to your question is,yes, you can move that IRA.
You can have a self directed IRAaccount where you buy physical gold. I'm
just not so sure you want toput a lot of your overall wealth into
(09:35):
gold because I just don't see itbeing a great part of one's portfolio other
than less than ten percent. Peoplethat want gold in their portfolio, really
they should have less than ten percentof their overall holdings weighted in gold,
not no more than that. Thereare some benefits to buying physical gold,
but these days there's ETFs out therethat track the a price of gold.
(10:01):
I always say, if you dobuy physical gold, listen when you go
to the picnic this weekend with yourneighbors. Don't let everybody know that you
have gold in the house, andyou know, in the middle of the
night you may get some unwanted visitorslooking for that gold. And not only
that, but Jeff it makes fora lousy night's sleep. You know what
it's like putting gold under your mattress. You know how hard and lumpy that's
(10:22):
going to be. Yeah, Iguess if you're going to invest in physical
gold, you might want to investin some lead too, if you know
what I mean. But anyway,I appreciate the common I appreciate the common
sense answer. And you haven't gotJeff, thank you, thank you for
calling. I'm glad Jeff called.That was a great question. I always
(10:43):
say, there's really no silly questionson this show, folks, there's no
silly questions whatsoever. And if youhave any questions, give me a call
knowing what to do. Listen.I'm not right all the time. I
you know, I think I'm moreright than wrong most of the time.
And when it comes to managing ourclients wealth, believe me, I take
(11:05):
it very seriously. As a fiduciary, I'm very very careful about how we
manage our clients wealth. I alwayssay I like to make as much money
as we can with less risk thanwe need to take. I don't need
to take a lot of risk tomake a lot of money if you're well
diversified, and we've made some dynamicmoves. We interviewed a new client Friday
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from Short Hills, New Jersey,and we went over our philosophy and our
returns and so forth, and youknow, and we actually compared their portfolio
to our portfolio and over a fiveyear period, their total return would have
been twenty five percent. With uswould have been over fifty percent. And
(11:50):
if the fees overall that they werepaying were coming in like seven approximately seven
thousand and eight thousand dollars. Andthis happens a lot. We can give
prospective clients and analysis on what theyown and how it would compare to if
they were with us over the lastfive years or so. And folks,
(12:13):
I take pride in our portfolios.Right now, Ryan my Son is heading
up the investment team with Paulola Pietraand Ed Wilhelm, our portfolio trader.
The three of them really do agood job. They meet with me every
week, give me their ideas,And obviously I have full veto power.
I've been doing this a long time, more than twice as long as anybody
(12:37):
who's worked for me, so Ihave a lot of experience, and I
take that experience and try to coachand mentor people that are under me when
it comes to managing money, don'tbe afraid to, you know, invest
in something that may not work out. We may only be in it for
a short period of time. Welet our clients know that everything we buy
(12:58):
isn't long term. We could getinto something and maybe a short time later
we realize we we we we canget into something that we feel will be
better, so we'll make that change. We let our clients know immediately what
we do in the portfolios. Ifwe if we underweight healthcare and overweight technology,
and we make a trade in ourclient's portfolio, Ryan is mailing out
(13:22):
an explanation to that. Ryan justabout every week, maybe every other week,
mails out a commentary to our emails, a commentary to our clients,
letting them know where we're at,what we're doing, what we're thinking.
We communicate so well with our clients, and you know, these these folks
in New Jersey were just amazed atthe difference of how we manage money and
(13:48):
how their wealth has been managed.And it's a it's a family, so
there's several several members of the familyand you know this, you know this
isn't the first time that families haveengaged our services. We have another family
out of the city Westchester area thathave engaged our services because after they hear
(14:09):
our story and it's a good story. Folks, Listen, there's a reason
why one hundred percent of my andmy family's money is invested just like my
clients. I wouldn't have it anyother way, and I'm proud to say
my advisors follow my lead. Iwouldn't have it any other way. If
if an investment isn't good enough forme, why should it be good for
(14:30):
my clients. So I put allof my investable assets right right in the
mix with my clients. And I'mproud to say that, and I'm very
proud of our returns. One eighthundred eight two five five nine four nine
one eight hundred eight two five fiftynine forty nine. If you have any
questions, folks, give me acall. Zach. Can I take a
quick fifteen second break. If youwant to learn more about Bouchet Financial Group,
(14:54):
visit their website Bouche dot com.That's bou C h e Hi dot
com. Sign up for their blog, which is updated every week. Stephen
Bouche dot com follow them on Twitterat Bouchet Group, Like them on Facebook.
The phone lines are open eight hundredtalk w g Y. That's eight
hundred eight two five five nine fournine. Here is Stephen Bouche. Thank
(15:30):
you, Zach for letting me takethat break. I truly appreciate it.
Folks. I'm here, live,sitting here. I would love to talk
to you if you have the question. Remember there's no silly question. Give
me a call one eight hundred eighttwo five five nine four nine one eight
hundred eight two five fifty nine fortynine and let me get you pointed in
(15:52):
the right direction, or at leastlet me give you my opinion. I
feel that, you know, themore educated investors are, the more informed
they are, the better decisions theymake. And that's what that's what I'd
like to do for you. That'sone of the goals of being on the
radio for twenty eight plus years isthat I'm helping you. Those listeners,
(16:18):
the loyal listeners, weekend, weekout, we have a lot of loyal
listeners just helping, helping you makethe right decisions when it comes to your
financial future. And that's so important, so important. One eight hundred eight
two five five nine four nine.Let's go back to the phone lines way
of Kyle in Albany. Hello,Kyle, how you doing, Sara?
(16:41):
Oh I'm doing wonderful. How aboutyou? I'm doing good. Thank you.
I'm headed up north right now.Where are you going? I'm going
by Saranac. My family has acamp up there that we've had in the
family for over one hundred years.Oh wow, cool. My wife's from
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Tupper Lake. We just talked aboutit this morning. So yeah, and
when we get up there, it'syou know, I always say her her
her one uncle owned the first barsyou come into town. The other uncle
was the police chief, the otheruncle was the mayor. I'm telling you
her family, I think owned thetown, and it's it's a bit of
(17:26):
a free for all up there.Yeah. Yeah, Well they're trying hard
to bring it back, and it'syou know, listen, small towns like
that are great. The problem withthose small towns is they're young. You
know, I call them the youngassets, young boys and girls. As
they they graduate from high school orcollege, they just don't want to hang
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around these small towns and they,you know, spread their wings, they
go elsewhere. But people like youand others you flock to these small hounds
because they're just great destination places,and there's that balance there that these small
pounds really try to balance out.No pun intended. So listen, safe
travel, safe trip. Listen.Let's hope the rain, you know,
(18:15):
Listen, how much more rain canwe take this summer? We started the
summer with a phenomenal Memorial Day weekend. We ended with gorgeous Labor Day weekend
and week and then all of asudden the skies opened up again. So
let's hope you have good weather.Anyway, What can I help you with?
Kyle? So, I'm thirty fiveyears old and I'm Alignman Verizon and
(18:41):
they do I have a four onek with them where they do a six
percent match, and I'm putting inEmerson. My wife just had our first
son, and we have another daughternow on the way anywhere fourteenth and she's
staying home raising the children, andso she stopped working for now. I
(19:10):
make about one hundred thousand a year, which does not stretch as far as
it used to years ago. AndI refinanced my home at two point seven
five percent for a fifteen year mortgage, and the mortgage is about eighteen eighty
three a month, and it's just, uh, you know, I'm kind
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of struggling a little bit, andI just don't know. I guess I
also want to put more into myuh four one K, but I'm just
wondering if I should maybe hold offon raising that percentage for now because I'm
getting stretched a little sin And ifmy wife went back to work, I
(19:57):
don't know if it would necessarily physicallymakes sense because then we would have to
have childcare, uh, and that'svery expensive. And I just really loved
you know, I was raised bymy mother staying home and it was amazing.
And I'm just wondering if I'm doingthe right move. Yeah. Well,
you know, the good news isyou're doing everything you can be doing
(20:18):
based on the information you're you're you'resharing with me. So that's the good
news. And I hear you.You know, there's nothing like having moms
be able to stay home with thekids and help them. You know,
so many moms are maybe not workingfull time anymore, maybe they go to
part time or maybe just take alittle sabbatical from the workforce. It's a
(20:44):
tough thing to balance out. Butit sounds it sounds as though Kyle,
that you're you're being you know,diligent about at least you're aware of putting
money away. That's first and foremost. So how how old are you again?
I'm a thirty five and I justchecked with my Fidelity account the other
(21:06):
day. I have about I've beenwith I've worked on the railroad prior to
that, and uh so I've beenwith riding for five years. That I
have about ninety five thousand in myfour O one K and that just uh,
I don't know, I feel likeI should have more at this point
in my life. Yeah, wella thirty five man, Yeah, you're
you're so young, so you havea lot of potential. The big thing
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is, and I compliment you,you have that discipline, You're aware of
it, and that means more thanthan than you you you know, so
keep that up, don't don't giveup the good fight. You may think
it's only ninety five thousand. Ican assure you you have a whole lot
more money than most other young peoplein your age group have. So that's
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that's that's the good news is you'reyou're you're doing better than you you realize.
Ninety five thousand is pretty good.Nothing, nothing to be embarrassed about.
Keep adding. And if there's atime when your wife may go back
to the workforce, even if it'spart time. You know, as long
as you're dedicated to saving money,Kyle, you're going to be in a
(22:18):
good place. And at some pointyou really should do a financial plan so
that you feel proud about what you'redoing and you can see the end game.
You can see like if you wantto retire at sixty five, where
you'll be, how much you'll have. It sounds as though you're living very
well within your means. That's firstand foremost when it comes to saving for
(22:41):
retirement is living within your means.That means that you're not going to need
a whole lot of money to retireon because you're living well within your means
now and things could change over thenext thirty years. You're on a good
track. Good start, keep itup, keep it going, keep listening.
Give me a call every once ina while let me know how you're
doing, Kyle. I appreciate it, sir, Thank you very much.
(23:04):
All right, you be well.One eight hundred eight two five five nine
four nine one eight hundred eight twofive fifty nine forty nine. Any questions
you have, folks, give mea call. I would love to talk
to you. I can't. Ican't thank you enough for for tuning in.
I know we have Dave on holdand Gary on hold. Guys,
(23:26):
don't go anywhere. We're gonna takea quick break for the news. I
promise I'll be back right on theother side of the news and I'll get
you going. We have Dave andVoresville, who I think might we might
have lost them, and we gotGary on hold. So if we lost
your Dave, call back in.Gary. You stay on and we'll get
you up as soon as as soonas we come out of the news,
(23:49):
and anybody else who wants a callwith questions. One eight hundred eight two
five five nine four nine. You'relistening to Let's Talk Money, brought to
you by Bouchef and Answer Group,where we help our clients prioritize their health
while we manage their wealth for life. One eight hundred eight two five five
nine four nine. See right onthe other side of the news. On
(24:12):
a warm summer's eve, on atrain bound from the made up with the
game. We were both two tiredto sleep, so we two turns staring.
I like this song. Welcome folks, thanks for hanging in through the
news. I can't thank you enough. I am with you live today,
(24:34):
not one of my capable colleagues,and believe me, I'm surrounded by nineteen
phenomenal professionals, amazing, well,the most talented professionals you can imagine I
have on my team. I amblessed. I am lucky. Our phone
lines are open. I would loveto talk to you. We have some
great questions today. One eight hundredeight, two, five, five,
(24:57):
nine, four nine. Let's goto Dave and Borisville. Is he still
there? Did we lose him?Zach? We lost Dave, but we
do have Gary. Hey, Gary, let's talk to Gary. Gary.
How are you the good good Steve, very good. I got a quick
question for you. I'm one ofthose seniors that's hitting is seventy two deal
(25:21):
with they put it off for ayear for a minimum withdraw from your four
oh one case or whatever, becauseI guess they want to start taxing us
senior citizens some more. But anyway, how is your feeling as far it
used to be that like you'd takefour percent for income in your senior years
off of those kind of accounts,But there's a big penalty. I think
(25:45):
it's like fifty percent. Is thatpenalty on is that on the on the
interest or is that on fifty percentpenalty on what you've put in there over
the years or exactly? Or doyou think the minimum amount they're saying or
should I take more more than thatto get the money out of there and
(26:07):
tax pay the tax on it?And I just wonder how you feel about
all that. Yeah, Gary,it's a great question. So this year,
are you seventy two this year orseventy three this year? I'll be
seventy two this year October, perfect, so you got another year before you
(26:32):
have to worry about this. IRS changes things all the time. So
you need to take your RMD requiredminimum distribution when you're seventy two, unless
you turn seventy two this year orlater. Now you can put it off
to age seventy three. And beforewe know it, you're gonna be able
to put it off to age seventyfive, which I'm really surprised at because
(26:55):
it used to be seventy and ahalf. And the reason why I RUS
did that and you kind of hiton it, is they want their money.
If you leave that money grown taxto third and your IRA and you're
not taking it out, they're notgetting tax income from that money. So
they kind of push people into havingto take money out a required minimum distribution.
But it amazes me, to behonest, I was surprised when I
(27:18):
saw go from seventy and a halfto seventy two. And now, as
I said, anybody who turns seventytwo this year or later, you can
take it at seventy three and soonit will be seventy five, so you
have another year. But when itcomes to taking your money, you absolutely
want to take what you need totake because there is a fifty percent penalty
(27:41):
on the distribution that you're supposed totake and you don't want to pay that.
So whether you like it or not, you have to take money out
of that IRA. And we alwayssay, if you've done your financial planning,
how much money do you need tolive on? Obviously, when you're
in a lower tax bracket, takinghigher amounts makes sense. If you're in
a higher tax bracket, maybe takingthe minimum out if you think you're going
(28:03):
to be in a lower tax bracketyears down the road. Some people as
I said it to be getting inthe show. Some people are still working,
you know. The fromt page ofBarns was all about there's basically the
title is Here's what it is liketo work in your eighties, and it
starts out with a professor from HudsonValley Community College, Fred Sterniza. I
(28:30):
think I'm pronouncing that name right.Anybody who knows Fred, give me a
call if I'm not pronouncing it right. I went to Hudson Valley Community College,
so I picked up on this.I was rooting and hollering for Fred.
I think it's it's great, butknowing what you can take is good.
And we have a rule of thumbif you have you know, if
you have a million dollars, youshould be able to take it if you've
(28:52):
done your planning right four to sixpercent out year in, year out,
and that allows your balance to growand allows it to eep up with inflation
because if you need you know,if you need a dollar this year,
next year, you're gonna need adollar three cents, the year after that
a dollar seven cents because of inflation. And the rule of seventy two says,
(29:14):
if you need a dollar today eighteenyears from now, you're gonna need
two dollars. So having your incomekeep up with inflation is important. Having
not depleting your entire balance is important. So you're right, four to six
percent is our sweet spot when wedo financial planning for clients. That's what
we always tell them. So ifyou have a million dollars saved up,
(29:36):
you should be able to live offof forty to sixty thousand dollars of that.
Gotcha. Now, the one lastquestion then, is that four to
six percent. If that is notthe minimum requirement on the schedule, you'd
still want to take the minimum requirementeven though yeah, it's over to come
(29:56):
o come Heck or high water.Heck or high water Gary, you need
to take It's crazy. Why giveUncle Sam? Listen, You've given Uncle
Sam enough through the years. There'sno reason to give Uncle Sam anymore.
I said at the beginning of theshow, I've been working since I was
eleven years old. My mom diedat ten. I had to go out
(30:17):
and work. I've been working sinceI was eleven, and I think of
all the money I've given the UncleSam. Although I'm guessing when I was
eleven years old, I really wasn'tgetting you know, being tax on that
money, if you know what Imean. Wink wink wink. But you
know I've given Uncle Sam a lotof money over the years, so you
don't want to give Uncle Sam anymorethan you need. Hey, listen,
(30:38):
everybody's got a favorite uncle, butwhen it comes to Sam, I'm sure
there's better uncles in your world.Right, I got you. Thank you,
Steve, you've answered my question.Have a good day, take care
of Gary, stay healthy, bewell. Thank you for calling. One
eight hundred eight two five five ninefour nine one eight hundred eight two five
(31:00):
fifty nine forty nine. If youhave any questions, folks, we had
some great questions today. Give mea call. I would love the talking.
We got a big week this week. Bureau of Labor Statistics. We
had the CPI for August. Rightnow, they're forecasting three point six percent
year over year increase, four tensof a percent more than July. The
(31:23):
core CPI, which excludes food andenergy. I don't know why they call
it the core, because you andI can't live without food and energy.
That's expected to rise four point fourpercent, following four point seven in the
month of June. The CPI isnearly almost six percent point six percentage points
(31:45):
lower than its peak of nine pointone percent reached in June of twenty twenty
two. That's why twenty twenty twowas a year from heck. I keep
using that word, heck, Zach. I don't think I can use the
other word, but heck is,you know, heck it is. Twenty
twenty two was a year from heckbecause and I went over this with these
(32:06):
new clients yesterday from New Jersey,that last year was the perfect storm.
Stocks went down and the headlines werejust they just aid at investors. And
you know, you hear me saythis. Harmony in my office coined it.
You know, whenever there's a marketcorrection and investors lose money, they
(32:29):
think this time it's different. It'sno different than the last correction, the
correction before that, the correction beforethat, and so forth. Every correction.
It never feels good. It's anuncomfortable feeling, but it comes with
the territory of investing. That elevenpercent year in, year out return that
I gave it the first half ofthe show for the SMP that included three
(32:52):
horrific bear markets, the Great Recession, fifteen years ago when the SMP was
down fifty percent, and a halfyears ago the beginning of COVID, that
God, God that changed our life. COVID changed our life forever, the
(33:12):
SMP was down thirty four percent.And last year the SMP was only down
nineteen point four percent, but bondswere down as much as stocks. That's
what made it the perfect storm.Even conservative investors that put bonds in their
portfolio lost money. That doesn't normallyhappen. It's only happened three times over
(33:32):
the last I think hundred years,and had happened last year. That's why
last year was just so so grueling. And here we sit here, we're
almost eight percent at an all timehigh. Anybody who thought the world was
coming to an end when the marketdecided it to turn around last October,
it's turned around and it's done really, really good. I mean, even
(33:55):
though for the week the SMP wasdown one point three percent, you're to
date we're up over sixteen percent,with dividends about seventeen percent. Nastac,
you know, sure, the Nastaccomposite was down almost two percent. QQQ
was only down one point three tosix percent. You're to date the NASTAC
(34:16):
composit's still up almost thirty two percent, and the NASTAC one hundred QQQ.
That's what you own, folks.When you buy QQQ, you're buying the
hundred largest companies in NASTAC up fortypercent. You're today, folks, I'm
telling you since October. You know, anybody who got scared out of the
(34:37):
market's unfortunately lost out on making whatwe call easy money. And you can't
panic, you can't have kne yourreactions one eight hundred eight two, five,
five, nine, four nine.Let's go back to the phone lines
where we have Dave on hold.Hello, Dave, Hey, I think
(34:58):
yeah, you got me okay,might name is Jane, but hey,
I got a quick question for Jane, you know. Yeah. So you
know, in a lot of discussionsthat we have on here, we talk
about the money that we put intothe market for savings and things like that.
And my grandfather always said, itwas never about what you made.
(35:20):
It was always about what you saved. When the end of the day,
you know, you could if youmade a thousand dollars and you save ten
dollars, well that's one thing.But if you made five hundred dollars and
save twenty five dollars. Well,that's a whole other program altogether. So
you know, in that respect,it's the same. I mean, he's
thinking along the same lines as you. But the other thing you used to
say too was everything is inputs andoutputs in life. You know, you
(35:47):
you you work really hard and youput a lot of time in, a
lot of effort in and everything,and you're going to get money for that.
You're gonna get paid and rewarded forthat. But you want to reduce
what you're spending. You want toreduce all your expenses and what you can
do. There's no better raise thannot spending. So, you know,
(36:08):
I wish they would talk more aboutand they would have shows about, you
know, what people can do toreduce their cost of living and reduce their
spending, and what can they doto maximize their savings. Not necessarily what
they put into a market or whatthey put into a mattress, but you
know, how how can they getwhere they're not spending the money and they're
(36:31):
saving more money. I wish therewas more of a discussion about that.
Let's save it. Let's save it, James. It's a great point that
you're bringing out your grandfather sounds likea wise man. I say often,
if you're not saving ten to fifteenpercent, you're not saving enough. We
had I think Kyle in the firsthalf of the show, talked about he's
(36:52):
working hard, he's got a family, he's trying to provide for. He's
putting six percent of a salary way. I admire him for that. I
aspect him for that he's doing.It would be easy for him to say,
hey, I need that six thousanddollars to put towards expenses, to
put food on the table, tohelp pay the mortgage, your rent,
to take care of my family.But he's dedicated to putting six percent of
(37:15):
his salary away. It's better thannothing and more than likely there's a match
there. This is what we callfree money. When people and your grandfather,
I'm guessing would agree with me,James, When people they work for
a company and their company says,hey, if you put six percent away,
we'll match that. Maybe you knowthe matches differ for every company,
(37:37):
but that's free money. That's likegetting a raise. And as I say,
often, if you're not putting tenif you've never done a retirement plan,
if you're not putting ten to fifteenpercent of your salary away, you're
not putting enough. And people automaticallysay I can't afford that, and I
say, my quirky way, James, I say, make believe you're going
(37:58):
to work tomorrow morning eight o'clock.You find out you lost your job,
you're going to be devastated. Let'smake believe eight o'clock Tuesday morning they call
you back and say, hey,we can bring it back, but we
have to bring it back out often percent less salary. You're gonna jump
on it because you love that job. And the only difference is you're walking
into your business office tomorrow and saying, hey, I want to start putting
(38:22):
ten percent away. I promise anybodywho's listening to me, you will not
like me for the next several monthsbecause you're going to have less money that
you're living on. But I promiseyou in the next few years, when
all of a sudden you see tenthousand, twenty five thousand, fifty thousand
dollars in your pension plan growing,you're going to love me. And that's
(38:44):
how you get started. Your grandfatherwas right now on the spending part.
James you are, So you've nailedit. If you make fifty thousand dollars
a year, you can't spend sixty. And the people that used to take
money when they made all that moneyin their homes, the value of their
homes, and they would take itout because they had mortgage brokers saying,
(39:06):
hey, refinance, you can takesome money, put a pool in,
buy a car, take a vacation. They were taking that equity out and
they were spending it. Once again, you hit it on the head.
If you make fifty thousand dollars ayear, you can't spend fifty five or
sixty. You have to You haveto put ten percent away and spend forty
(39:28):
five thousand included in taxes. That'show you do it. That's the key.
It's a great point that you're bringingup, James. My wife and
I make almost the same amount ofmoney each each week, she takes home
twelve hundred dollars. I take homeeleven hundred dollars. What we did was
we took our money and we saidright off the bat, we're gonna take
(39:51):
away money from this take home soas if we don't even have it.
So her take home is nine hundredand my take home is eight twenty fi.
And what we do every single weekis we take five hundred and seventy
five dollars every single week and putit in a box. So we have
and that and every time that adollar amount reaches a certain amount, we
(40:12):
take that out and we put thatin another place. And we've done this
now for four years. We havesaved an incredible amount of money. And
how we did it was we justdecided. We just decided, listen,
we have to pretend we don't makethat money. We just have to learn
to live within the nine hundred andthe eight twenty five, which it was
(40:35):
four years ago. It wasn't evennine hundred and eight twenty five. It
wasn't even that. Now it's that. And we actually, you know,
we've got a little extra for dinneron a Friday night or whatever. But
my point is we've lived on thistwenty five percent saving. Of every penny
that comes into our home, wetake twenty five percent of it doesn't matter.
I don't care if you return bottlesat Stuarts or at the at the
Price shopper when you're you know,in the Sultra cans, whatever it is,
(41:00):
twenty five percent goes in that box, and when that dollar amount reaches
a certain amount, we pull itout and put it someplace else. James,
I should pay you to come onthis show. James, I should
pay you to come on the show. More off and man, oh man,
you are making it simple for thelistening audience to realize that, even
(41:22):
if they don't think they can savemoney, you just showed them away how
they could save money. I'm gonnagive you articulous James. I'm gonna give
you one suggestion before I let yougo, because I gotta let you go.
One suggestion. Don't put that moneyin a box. You can open
up our clients at SWAB it's justin the money market account they're getting over
(41:45):
five percent. James. That's moneyyou're leaving on the table. So as
long as you and your wife areworking so hard to put that money away,
don't put it in a box.Put it, open up an account,
let it start earning interests. Wehaven't seen five point two five percent
for just cash. You're being paidthat on cash. We haven't seen that
(42:07):
forever and ever and ever. Oh, what a great phone call from James
one eight hundred eight two five fivenine four nine, James, I admire
you keep up the good work.Calling every once in a while let me
know how you're doing, because youjust help people realize they can save money.
One eight hundred eight two five fiftynine forty nine. Any questions you
(42:30):
have, folks, give me acall. You know, short term bond
yields are like amazing. Three months, four months, six months, you're
getting almost you know, you're gettingover five and a half percent interest when
you're treasury five point four percent aten year treasury right now almost four point
(42:52):
three percent. Now we talk aboutthis, I'll remind you one more time,
why should you not load up onone year and less getting over five
and a half percent, because whenthey come to mature, and you never
lose money when you buy a treasury, folks, if you buy a six
(43:13):
month treasury, you're going to getfive point five three one percent annual,
so two point you know, twopoint seven five percent, but that's annual.
You're going to get five point threeall I'm sorry, five point five
three percent annual. And when thatsix month treasury built matures, you can
renew it again. Now the questionis will you get another five point five
(43:37):
percent I'm not sure. Maybe you'llget four point five, maybe you'll get
three point five. I don't know. And that's why laddering treasuries and we
say this all the time, andin my office does a great job.
We ladder less than one year.We go out to three year, five
(43:58):
year, seven year, and tenyear. We spread the risk because there
is interest what we call interest raterisk when these bonds mature. If interest
rates are lower, you're going toget lower and if interest rates are lower,
you're you're you're losing out, youknow, believe it or not.
Ten years is a long time.Six months isn't such a long time,
(44:20):
So not getting greedy and laddering thatthat bond portfolio out and getting you know,
maybe getting four point three for aten year treasury year in, year
out. And this way, whenthat six month comes due, you renew
it, you buy a new maybeten year, five year, depending on
where interest rates are, but yourladder a portfolio out. And we had
(44:45):
really a great, great conversation withthese new clients from Jersey and they the
daughter was adamant about buying CDs andfinally Vinny Testa, you know, one
of our cfps EPA and one ofour wealth advisors. And listen, this
is what he does for us.He does our tax planning and he helps
(45:07):
our clients. He says, you'renot looking at this right. You could
buy a CD and get let's sayfive and a half percent, but you're
paying state and federal tax on theincome. If you buy a treasury,
you're not paying state tax. Andfor this woman, she lives in New
York City, so she was payingstate and city taxes close to ten percent
(45:32):
that she didn't have to pay.And you have to you have to really
give it some thought, folks,when you're buying, whether bonds or CDs,
you really have to give it somethought, and you know, make
sure you're doing what's right for you. Every scenario is different. Every investor,
every taxpayer has different goals, objectives, and scenarios, and you need
(45:54):
to do what's right for you.So there you have it. You want
to not get greedy, You wanta ladder of portfolio bonds. Have those
that portfolio bonds be spread out sothat you're making the most overtime. That's
the key, diversifying and making themost overtime. The you know, as
(46:16):
I said, we got a bigweek coming up. But this Baron's article,
I haven't really had a chance totalk about it. It's a pretty
pretty, pretty nice article, andthey have a professor from Hudson Valley.
Beyond frontage of barons going strong,more Americans are working into their seventies and
(46:37):
eighties. What it means for theeconomy, the workplace, and the workers
themselves. And as soon as youopen it up, guess what Fred Sterniza
thinks about retirement. When he seesfamiliar names in the obituaries, or when
winter wind whips his upstate New Yorkhome, Sterniza, eighty one wonder whether
(47:00):
maybe it's time for him to stopworking as a professor of semiconductor manufacturing technology
at Hudson Valley Community College. I'mreading this, folks, right from the
parents. So here you got fredsin his eighties and he's still teaching,
he says. Then he quickly dismissesthe thought. I really enjoy what I'm
(47:22):
doing more than i'd enjoy retirement.And I know a lot of people that
are like that. Listen, ifyou're retired, what are you gonna do.
You're gonna play bridge, You're gonnaplay golf, You're you're going to
travel, You're going to do this, You're going to do that. Some
people just like working, and there'snothing wrong with that. Warren Buffett's still
working at ninety four years old,so you know, it's a great article.
(47:45):
But it brings in the home.It brings the home why people do
what they do. And here heis Freds in his eighties and Sterniza earns
high marks from his students and supervisorsat the college, so he's well thought
up. At Hudson Valley Community CollegeHVCC, he teaches a full course load
(48:08):
during the academic year. He arrivedthere in two thousand and one after a
varied career in business, academia,and state government. This guy sounds like
he can teach these students a lotof things. Folks were at the end
of the show. I hope youcome back tomorrow morning eight o'clock. You're
listening to Let's Talk Money, broughtto you by Bouscheven Andrew, where we
(48:29):
help our clients prioritize their health whilewe manage their wealth for life. You enjoyed today
Good morning, and welcome for anotherepisode of Let's Talk Money. It's been
twenty eight years I've been here foryou, folks, and I'm telling you
you hear me say this often.I can't get enough of you. I
truly enjoy doing the radio. Iget energized. I love having you on
the other side of the mike.I can't begin to tell you just how
(00:41):
much it means to me to beable to help get you pointed in the
right direction somehow, some way.You need to get pointed in the right
direction. You need listen. Youget one opportunity to retire, you need
to be prepared. That's what I'mhere for. So if you have any
questions, any questions whatsoever, giveus a call. One eight hundred eight
(01:02):
two five five nine four nine oneeight hundred eight two five fifty nine forty
nine, any questions at all.Zach Harris, my long term producer,
is ready willing and able. Weyou know, I've been saying for months
I think that I wanted to geta new spot drawn up, and we
(01:23):
finally did that, Zach, Sothank you, and we'll get a little
used to it, because Zach isgoing to be part of bringing you in
with music and so forth. AndI can't thank my colleagues enough. Over
the past couple of weeks, I'vehad my son Ryan Harmony Marty helped do
the radio. Give me a littlebreak every once in a while. You
need it as energized as I getworking seven days a week. Listen,
(01:48):
I've been working since I was elevenyears old, and you know, working
seven days a week, it's McDonaldsay, I deserve a break today every
once in a while, and speakingand working a long time. We're going
to talk about a Baron's article thismorning. I was just Here's what it's
like to work in your eighties wasthe front page of this week's Barns.
(02:13):
It's a great, great read,and it starts so off, believe it
or not, with a professor fromguests where folks Hudson Valley Community College,
Fred Sternisa, who is in hiseighties teaching young people how to get by
(02:35):
in the world. He's retired afew times. It was just a great
positive article. I'll talk about thatlater. Because a lot of people are
working, and it's not to workto make ends meet, although there are
a bunch of people that need towork to make ends meet. That's why
I'm here, as you know,to hopefully, hopefully, if you listen,
(02:59):
over time, you won't need towork in retirement in order to make
ends meet. That's that's that's notthe that's not what we want you to
do. We want you to beprepared so you can retire have the quality
of lifestyle that you want. Butsometimes people as they age up in mature
in life, they're in their seventiesand eighties, they're just bored. Some
(03:21):
people just want to keep keep going. They you know, gives them something
to do. Get out of bed, you know, get ready dressed,
out of the house, meet people, be with people, make their their
their brains tick. There's a lotof reasons why people want to work.
So we'll maybe in the second halfof the show, we'll we'll talk about
(03:42):
that article. It's a great article. And if you haven't picked up this
week's Barons yet, look for afront page front page article one eight hundred
eight two, five five nine fournine one eight hundred eight two, five
fifty nine forty nine. Any questionswhatsoever, give me a call. I'll
summarize the week for it. China'sCountry Garden made two debt payments to overseas
(04:08):
investors to avoid default. Believe itor not, that's big because you know,
so many things are happening in China. We never really know what to
believe what not to believe. Butat least at least they're paying their debt.
It's a big company, folks.In China's number two in the world.
Remember our GDP is in the lowtwenty trillion dollars range and they're in
(04:30):
the mid teen range. And thenyou know number three is less than five
trillions. So China is a forceto be reckoned with you. Hear me
say that often, and that's whythere's always talk about China. Oil prices
rose after Russia and Saudi Arabia extendedI'll put cuts in this great country of
ours. The United States government sackscut the probability of a recession to fifteen
(04:55):
percent. They were at twenty percent. So this week they came out and
said the chance of a recession isfifteen percent, not twenty percent. That's
good news, folks. But theother side of the coin, good old
Mike Wilson of Morgan Stanley warrened thattraders were too optimistic. Well listen,
folks, he's been wrong through thiswhole rally. And I know people who
(05:18):
work at Morgan Stanley and they sayhe is just a Debby downer. Now
he's been writing the past. I'mnot saying this man's a brilliant mind.
What I'm saying is you have toyou have to look at all the stats,
all the research that you do andput it together, because you got
(05:41):
some way out there to the rightand some way out there to the left.
And I'm not talking politics. I'mtalking their outlook for the economy and
their outlook of where they feel thestock market will head. So this week
you have Goldman Sachs kind of sayingthat the chance of a recession is down,
and Morgan Stanley is Mike Wilson warnstraders that they're too optimistic. And
(06:04):
then you had, you know,stocks rows, and then they fell on
inflation concerns and fears China, youknow, put a wrinkle in Apple's share
price. Ample was down six percentsince Wednesday. So for the week,
the Dow fell point seven five,the SMP off one point three, nas
(06:26):
nack down one point nine three,almost two percent. So it wasn't a
great week in the markets. Butthat's okay, stocks need to take a
breather as well. One eight hundredeight two five, five, nine,
four nine. Give me a callany questions that you have. Let's kick
off the day with Jeff in Greenville. Hello, Jeff, heay, Good
morning, Steve. How are you. I'm doing wonderful. How about you
(06:48):
today? Oh? Excellent, quickquestion. I think I know the answer
anyway, but I keep on hearingall these advertisements how you can transfer your
IRA A into physical gold assets.I'd like to get your spin on that.
Yeah, be careful, you know. I give this statistic often if
(07:13):
over the last fifteen years, andthere's been a lot of reason, Jeff,
you have to remember, gold tradeson fear and greed. Fear that
the world's coming to an end,which it hasn't. I don't think it's
going to and greed when they seetheir share price go up. If you
go back just the two thousand andeleven gold peaked almost at two thousand dollars
(07:34):
announced, and then it fell allthe way down to the eleven hundred dollars
announced range range. And here wesit here today at nineteen eighteen. The
high point over the last year wastwo thousand, forty eight dollars announced gold
year to data is up five pointfour to two percent compared to the S
and P five hundred up sixteen percent. So the benefits of an IRA Jeff,
(07:59):
is that you can literally have awell diversified portfolio and you can include
gold in that. I'm not sayingthat people shouldn't have gold as part of
their asset allocation. They absolutely should, but it shouldn't make up the bulk
of their portfolio. There's just noreason why people should load up on gold
these Gold does not have any intrinsicvalue, It does not pay a dividend.
(08:24):
There's such very little use with gold. Most people buy gold as jewelry.
Other people give gold as gifts,especially on the Pacific rim those countries,
it's very well known that gold isgiven as gifts instead of cash.
And when you put gold in yourportfolio, as they said, a lot
of people start buying gold when theythink that things are bad, they're going
(08:48):
to get uglier. If you lookover the last fifteen years Jeff. Fifteen
years, year in, year out, the S and P is up eleven
percent a year year in year out, ASTAC is up sixteen percent year and
year out. I bring up Nanstackbecause it's our top holding in our portfolios.
Our clients have had stellar returns becauseof our outlook. When you look
(09:11):
at bonds two point six percent goldover the same time period six percent.
This is why most investors need awell diversified, well thought out portfolio.
The answer to your question is,yes, you can move that IRA.
You can have a self directed IRAaccount where you buy physical gold. I'm
just not so sure you want toput a lot of your overall wealth into
(09:35):
gold because I just don't see itbeing a great part of one's portfolio other
than less than ten percent. Peoplethat want gold in their portfolio, really
they should have less than ten percentof their overall holdings weighted in gold,
not no more than that. Thereare some benefits to buying physical gold,
but these days there's ETFs out therethat track the a price of gold.
(10:01):
I always say, if you dobuy physical gold, listen when you go
to the picnic this weekend with yourneighbors. Don't let everybody know that you
have gold in the house, andyou know, in the middle of the
night you may get some unwanted visitorslooking for that gold. And not only
that, but Jeff it makes fora lousy night's sleep. You know what
it's like putting gold under your mattress. You know how hard and lumpy that's
(10:22):
going to be. Yeah, Iguess if you're going to invest in physical
gold, you might want to investin some lead too, if you know
what I mean. But anyway,I appreciate the common I appreciate the common
sense answer. And you haven't gotJeff, thank you, thank you for
calling. I'm glad Jeff called.That was a great question. I always
(10:43):
say, there's really no silly questionson this show, folks, there's no
silly questions whatsoever. And if youhave any questions, give me a call
knowing what to do. Listen.I'm not right all the time. I
you know, I think I'm moreright than wrong most of the time.
And when it comes to managing ourclients wealth, believe me, I take
(11:05):
it very seriously. As a fiduciary, I'm very very careful about how we
manage our clients wealth. I alwayssay I like to make as much money
as we can with less risk thanwe need to take. I don't need
to take a lot of risk tomake a lot of money if you're well
diversified, and we've made some dynamicmoves. We interviewed a new client Friday
(11:30):
from Short Hills, New Jersey,and we went over our philosophy and our
returns and so forth, and youknow, and we actually compared their portfolio
to our portfolio and over a fiveyear period, their total return would have
been twenty five percent. With uswould have been over fifty percent. And
(11:50):
if the fees overall that they werepaying were coming in like seven approximately seven
thousand and eight thousand dollars. Andthis happens a lot. We can give
prospective clients and analysis on what theyown and how it would compare to if
they were with us over the lastfive years or so. And folks,
(12:13):
I take pride in our portfolios.Right now, Ryan my Son is heading
up the investment team with Paulola Pietraand Ed Wilhelm, our portfolio trader.
The three of them really do agood job. They meet with me every
week, give me their ideas,And obviously I have full veto power.
I've been doing this a long time, more than twice as long as anybody
(12:37):
who's worked for me, so Ihave a lot of experience, and I
take that experience and try to coachand mentor people that are under me when
it comes to managing money, don'tbe afraid to, you know, invest
in something that may not work out. We may only be in it for
a short period of time. Welet our clients know that everything we buy
(12:58):
isn't long term. We could getinto something and maybe a short time later
we realize we we we we canget into something that we feel will be
better, so we'll make that change. We let our clients know immediately what
we do in the portfolios. Ifwe if we underweight healthcare and overweight technology,
and we make a trade in ourclient's portfolio, Ryan is mailing out
(13:22):
an explanation to that. Ryan justabout every week, maybe every other week,
mails out a commentary to our emails, a commentary to our clients,
letting them know where we're at,what we're doing, what we're thinking.
We communicate so well with our clients, and you know, these these folks
in New Jersey were just amazed atthe difference of how we manage money and
(13:48):
how their wealth has been managed.And it's a it's a family, so
there's several several members of the familyand you know this, you know this
isn't the first time that families haveengaged our services. We have another family
out of the city Westchester area thathave engaged our services because after they hear
(14:09):
our story and it's a good story. Folks, Listen, there's a reason
why one hundred percent of my andmy family's money is invested just like my
clients. I wouldn't have it anyother way, and I'm proud to say
my advisors follow my lead. Iwouldn't have it any other way. If
if an investment isn't good enough forme, why should it be good for
(14:30):
my clients. So I put allof my investable assets right right in the
mix with my clients. And I'mproud to say that, and I'm very
proud of our returns. One eighthundred eight two five five nine four nine
one eight hundred eight two five fiftynine forty nine. If you have any
questions, folks, give me acall. Zach. Can I take a
quick fifteen second break. If youwant to learn more about Bouchet Financial Group,
(14:54):
visit their website Bouche dot com.That's bou C h e Hi dot
com. Sign up for their blog, which is updated every week. Stephen
Bouche dot com follow them on Twitterat Bouchet Group, Like them on Facebook.
The phone lines are open eight hundredtalk w g Y. That's eight
hundred eight two five five nine fournine. Here is Stephen Bouche. Thank
(15:30):
you, Zach for letting me takethat break. I truly appreciate it.
Folks. I'm here, live,sitting here. I would love to talk
to you if you have the question. Remember there's no silly question. Give
me a call one eight hundred eighttwo five five nine four nine one eight
hundred eight two five fifty nine fortynine and let me get you pointed in
(15:52):
the right direction, or at leastlet me give you my opinion. I
feel that, you know, themore educated investors are, the more informed
they are, the better decisions theymake. And that's what that's what I'd
like to do for you. That'sone of the goals of being on the
radio for twenty eight plus years isthat I'm helping you. Those listeners,
(16:18):
the loyal listeners, weekend, weekout, we have a lot of loyal
listeners just helping, helping you makethe right decisions when it comes to your
financial future. And that's so important, so important. One eight hundred eight
two five five nine four nine.Let's go back to the phone lines way
of Kyle in Albany. Hello,Kyle, how you doing, Sara?
(16:41):
Oh I'm doing wonderful. How aboutyou? I'm doing good. Thank you.
I'm headed up north right now.Where are you going? I'm going
by Saranac. My family has acamp up there that we've had in the
family for over one hundred years.Oh wow, cool. My wife's from
(17:03):
Tupper Lake. We just talked aboutit this morning. So yeah, and
when we get up there, it'syou know, I always say her her
her one uncle owned the first barsyou come into town. The other uncle
was the police chief, the otheruncle was the mayor. I'm telling you
her family, I think owned thetown, and it's it's a bit of
(17:26):
a free for all up there.Yeah. Yeah, Well they're trying hard
to bring it back, and it'syou know, listen, small towns like
that are great. The problem withthose small towns is they're young. You
know, I call them the youngassets, young boys and girls. As
they they graduate from high school orcollege, they just don't want to hang
(17:51):
around these small towns and they,you know, spread their wings, they
go elsewhere. But people like youand others you flock to these small hounds
because they're just great destination places,and there's that balance there that these small
pounds really try to balance out.No pun intended. So listen, safe
travel, safe trip. Listen.Let's hope the rain, you know,
(18:15):
Listen, how much more rain canwe take this summer? We started the
summer with a phenomenal Memorial Day weekend. We ended with gorgeous Labor Day weekend
and week and then all of asudden the skies opened up again. So
let's hope you have good weather.Anyway, What can I help you with?
Kyle? So, I'm thirty fiveyears old and I'm Alignman Verizon and
(18:41):
they do I have a four onek with them where they do a six
percent match, and I'm putting inEmerson. My wife just had our first
son, and we have another daughternow on the way anywhere fourteenth and she's
staying home raising the children, andso she stopped working for now. I
(19:10):
make about one hundred thousand a year, which does not stretch as far as
it used to years ago. AndI refinanced my home at two point seven
five percent for a fifteen year mortgage, and the mortgage is about eighteen eighty
three a month, and it's just, uh, you know, I'm kind
(19:34):
of struggling a little bit, andI just don't know. I guess I
also want to put more into myuh four one K, but I'm just
wondering if I should maybe hold offon raising that percentage for now because I'm
getting stretched a little sin And ifmy wife went back to work, I
(19:57):
don't know if it would necessarily physicallymakes sense because then we would have to
have childcare, uh, and that'svery expensive. And I just really loved
you know, I was raised bymy mother staying home and it was amazing.
And I'm just wondering if I'm doingthe right move. Yeah. Well,
you know, the good news isyou're doing everything you can be doing
(20:18):
based on the information you're you're you'resharing with me. So that's the good
news. And I hear you.You know, there's nothing like having moms
be able to stay home with thekids and help them. You know,
so many moms are maybe not workingfull time anymore, maybe they go to
part time or maybe just take alittle sabbatical from the workforce. It's a
(20:44):
tough thing to balance out. Butit sounds it sounds as though Kyle,
that you're you're being you know,diligent about at least you're aware of putting
money away. That's first and foremost. So how how old are you again?
I'm a thirty five and I justchecked with my Fidelity account the other
(21:06):
day. I have about I've beenwith I've worked on the railroad prior to
that, and uh so I've beenwith riding for five years. That I
have about ninety five thousand in myfour O one K and that just uh,
I don't know, I feel likeI should have more at this point
in my life. Yeah, wella thirty five man, Yeah, you're
you're so young, so you havea lot of potential. The big thing
(21:30):
is, and I compliment you,you have that discipline, You're aware of
it, and that means more thanthan than you you you know, so
keep that up, don't don't giveup the good fight. You may think
it's only ninety five thousand. Ican assure you you have a whole lot
more money than most other young peoplein your age group have. So that's
(21:55):
that's that's the good news is you'reyou're you're doing better than you you realize.
Ninety five thousand is pretty good.Nothing, nothing to be embarrassed about.
Keep adding. And if there's atime when your wife may go back
to the workforce, even if it'spart time. You know, as long
as you're dedicated to saving money,Kyle, you're going to be in a
(22:18):
good place. And at some pointyou really should do a financial plan so
that you feel proud about what you'redoing and you can see the end game.
You can see like if you wantto retire at sixty five, where
you'll be, how much you'll have. It sounds as though you're living very
well within your means. That's firstand foremost when it comes to saving for
(22:41):
retirement is living within your means.That means that you're not going to need
a whole lot of money to retireon because you're living well within your means
now and things could change over thenext thirty years. You're on a good
track. Good start, keep itup, keep it going, keep listening.
Give me a call every once ina while let me know how you're
doing, Kyle. I appreciate it, sir, Thank you very much.
(23:04):
All right, you be well.One eight hundred eight two five five nine
four nine one eight hundred eight twofive fifty nine forty nine. Any questions
you have, folks, give mea call. I would love to talk
to you. I can't. Ican't thank you enough for for tuning in.
I know we have Dave on holdand Gary on hold. Guys,
(23:26):
don't go anywhere. We're gonna takea quick break for the news. I
promise I'll be back right on theother side of the news and I'll get
you going. We have Dave andVoresville, who I think might we might
have lost them, and we gotGary on hold. So if we lost
your Dave, call back in.Gary. You stay on and we'll get
you up as soon as as soonas we come out of the news,
(23:49):
and anybody else who wants a callwith questions. One eight hundred eight two
five five nine four nine. You'relistening to Let's Talk Money, brought to
you by Bouchef and Answer Group,where we help our clients prioritize their health
while we manage their wealth for life. One eight hundred eight two five five
nine four nine. See right onthe other side of the news. On
(24:12):
a warm summer's eve, on atrain bound from the made up with the
game. We were both two tiredto sleep, so we two turns staring.
I like this song. Welcome folks, thanks for hanging in through the
news. I can't thank you enough. I am with you live today,
(24:34):
not one of my capable colleagues,and believe me, I'm surrounded by nineteen
phenomenal professionals, amazing, well,the most talented professionals you can imagine I
have on my team. I amblessed. I am lucky. Our phone
lines are open. I would loveto talk to you. We have some
great questions today. One eight hundredeight, two, five, five,
(24:57):
nine, four nine. Let's goto Dave and Borisville. Is he still
there? Did we lose him?Zach? We lost Dave, but we
do have Gary. Hey, Gary, let's talk to Gary. Gary.
How are you the good good Steve, very good. I got a quick
question for you. I'm one ofthose seniors that's hitting is seventy two deal
(25:21):
with they put it off for ayear for a minimum withdraw from your four
oh one case or whatever, becauseI guess they want to start taxing us
senior citizens some more. But anyway, how is your feeling as far it
used to be that like you'd takefour percent for income in your senior years
off of those kind of accounts,But there's a big penalty. I think
(25:45):
it's like fifty percent. Is thatpenalty on is that on the on the
interest or is that on fifty percentpenalty on what you've put in there over
the years or exactly? Or doyou think the minimum amount they're saying or
should I take more more than thatto get the money out of there and
(26:07):
tax pay the tax on it?And I just wonder how you feel about
all that. Yeah, Gary,it's a great question. So this year,
are you seventy two this year orseventy three this year? I'll be
seventy two this year October, perfect, so you got another year before you
(26:32):
have to worry about this. IRS changes things all the time. So
you need to take your RMD requiredminimum distribution when you're seventy two, unless
you turn seventy two this year orlater. Now you can put it off
to age seventy three. And beforewe know it, you're gonna be able
to put it off to age seventyfive, which I'm really surprised at because
(26:55):
it used to be seventy and ahalf. And the reason why I RUS
did that and you kind of hiton it, is they want their money.
If you leave that money grown taxto third and your IRA and you're
not taking it out, they're notgetting tax income from that money. So
they kind of push people into havingto take money out a required minimum distribution.
But it amazes me, to behonest, I was surprised when I
(27:18):
saw go from seventy and a halfto seventy two. And now, as
I said, anybody who turns seventytwo this year or later, you can
take it at seventy three and soonit will be seventy five, so you
have another year. But when itcomes to taking your money, you absolutely
want to take what you need totake because there is a fifty percent penalty
(27:41):
on the distribution that you're supposed totake and you don't want to pay that.
So whether you like it or not, you have to take money out
of that IRA. And we alwayssay, if you've done your financial planning,
how much money do you need tolive on? Obviously, when you're
in a lower tax bracket, takinghigher amounts makes sense. If you're in
a higher tax bracket, maybe takingthe minimum out if you think you're going
(28:03):
to be in a lower tax bracketyears down the road. Some people as
I said it to be getting inthe show. Some people are still working,
you know. The fromt page ofBarns was all about there's basically the
title is Here's what it is liketo work in your eighties, and it
starts out with a professor from HudsonValley Community College, Fred Sterniza. I
(28:30):
think I'm pronouncing that name right.Anybody who knows Fred, give me a
call if I'm not pronouncing it right. I went to Hudson Valley Community College,
so I picked up on this.I was rooting and hollering for Fred.
I think it's it's great, butknowing what you can take is good.
And we have a rule of thumbif you have you know, if
you have a million dollars, youshould be able to take it if you've
(28:52):
done your planning right four to sixpercent out year in, year out,
and that allows your balance to growand allows it to eep up with inflation
because if you need you know,if you need a dollar this year,
next year, you're gonna need adollar three cents, the year after that
a dollar seven cents because of inflation. And the rule of seventy two says,
(29:14):
if you need a dollar today eighteenyears from now, you're gonna need
two dollars. So having your incomekeep up with inflation is important. Having
not depleting your entire balance is important. So you're right, four to six
percent is our sweet spot when wedo financial planning for clients. That's what
we always tell them. So ifyou have a million dollars saved up,
(29:36):
you should be able to live offof forty to sixty thousand dollars of that.
Gotcha. Now, the one lastquestion then, is that four to
six percent. If that is notthe minimum requirement on the schedule, you'd
still want to take the minimum requirementeven though yeah, it's over to come
(29:56):
o come Heck or high water.Heck or high water Gary, you need
to take It's crazy. Why giveUncle Sam? Listen, You've given Uncle
Sam enough through the years. There'sno reason to give Uncle Sam anymore.
I said at the beginning of theshow, I've been working since I was
eleven years old. My mom diedat ten. I had to go out
(30:17):
and work. I've been working sinceI was eleven, and I think of
all the money I've given the UncleSam. Although I'm guessing when I was
eleven years old, I really wasn'tgetting you know, being tax on that
money, if you know what Imean. Wink wink wink. But you
know I've given Uncle Sam a lotof money over the years, so you
don't want to give Uncle Sam anymorethan you need. Hey, listen,
(30:38):
everybody's got a favorite uncle, butwhen it comes to Sam, I'm sure
there's better uncles in your world.Right, I got you. Thank you,
Steve, you've answered my question.Have a good day, take care
of Gary, stay healthy, bewell. Thank you for calling. One
eight hundred eight two five five ninefour nine one eight hundred eight two five
(31:00):
fifty nine forty nine. If youhave any questions, folks, we had
some great questions today. Give mea call. I would love the talking.
We got a big week this week. Bureau of Labor Statistics. We
had the CPI for August. Rightnow, they're forecasting three point six percent
year over year increase, four tensof a percent more than July. The
(31:23):
core CPI, which excludes food andenergy. I don't know why they call
it the core, because you andI can't live without food and energy.
That's expected to rise four point fourpercent, following four point seven in the
month of June. The CPI isnearly almost six percent point six percentage points
(31:45):
lower than its peak of nine pointone percent reached in June of twenty twenty
two. That's why twenty twenty twowas a year from heck. I keep
using that word, heck, Zach. I don't think I can use the
other word, but heck is,you know, heck it is. Twenty
twenty two was a year from heckbecause and I went over this with these
(32:06):
new clients yesterday from New Jersey,that last year was the perfect storm.
Stocks went down and the headlines werejust they just aid at investors. And
you know, you hear me saythis. Harmony in my office coined it.
You know, whenever there's a marketcorrection and investors lose money, they
(32:29):
think this time it's different. It'sno different than the last correction, the
correction before that, the correction beforethat, and so forth. Every correction.
It never feels good. It's anuncomfortable feeling, but it comes with
the territory of investing. That elevenpercent year in, year out return that
I gave it the first half ofthe show for the SMP that included three
(32:52):
horrific bear markets, the Great Recession, fifteen years ago when the SMP was
down fifty percent, and a halfyears ago the beginning of COVID, that
God, God that changed our life. COVID changed our life forever, the
(33:12):
SMP was down thirty four percent.And last year the SMP was only down
nineteen point four percent, but bondswere down as much as stocks. That's
what made it the perfect storm.Even conservative investors that put bonds in their
portfolio lost money. That doesn't normallyhappen. It's only happened three times over
(33:32):
the last I think hundred years,and had happened last year. That's why
last year was just so so grueling. And here we sit here, we're
almost eight percent at an all timehigh. Anybody who thought the world was
coming to an end when the marketdecided it to turn around last October,
it's turned around and it's done really, really good. I mean, even
(33:55):
though for the week the SMP wasdown one point three percent, you're to
date we're up over sixteen percent,with dividends about seventeen percent. Nastac,
you know, sure, the Nastaccomposite was down almost two percent. QQQ
was only down one point three tosix percent. You're to date the NASTAC
(34:16):
composit's still up almost thirty two percent, and the NASTAC one hundred QQQ.
That's what you own, folks.When you buy QQQ, you're buying the
hundred largest companies in NASTAC up fortypercent. You're today, folks, I'm
telling you since October. You know, anybody who got scared out of the
(34:37):
market's unfortunately lost out on making whatwe call easy money. And you can't
panic, you can't have kne yourreactions one eight hundred eight two, five,
five, nine, four nine.Let's go back to the phone lines
where we have Dave on hold.Hello, Dave, Hey, I think
(34:58):
yeah, you got me okay,might name is Jane, but hey,
I got a quick question for Jane, you know. Yeah. So you
know, in a lot of discussionsthat we have on here, we talk
about the money that we put intothe market for savings and things like that.
And my grandfather always said, itwas never about what you made.
(35:20):
It was always about what you saved. When the end of the day,
you know, you could if youmade a thousand dollars and you save ten
dollars, well that's one thing.But if you made five hundred dollars and
save twenty five dollars. Well,that's a whole other program altogether. So
you know, in that respect,it's the same. I mean, he's
thinking along the same lines as you. But the other thing you used to
say too was everything is inputs andoutputs in life. You know, you
(35:47):
you you work really hard and youput a lot of time in, a
lot of effort in and everything,and you're going to get money for that.
You're gonna get paid and rewarded forthat. But you want to reduce
what you're spending. You want toreduce all your expenses and what you can
do. There's no better raise thannot spending. So, you know,
(36:08):
I wish they would talk more aboutand they would have shows about, you
know, what people can do toreduce their cost of living and reduce their
spending, and what can they doto maximize their savings. Not necessarily what
they put into a market or whatthey put into a mattress, but you
know, how how can they getwhere they're not spending the money and they're
(36:31):
saving more money. I wish therewas more of a discussion about that.
Let's save it. Let's save it, James. It's a great point that
you're bringing out your grandfather sounds likea wise man. I say often,
if you're not saving ten to fifteenpercent, you're not saving enough. We
had I think Kyle in the firsthalf of the show, talked about he's
(36:52):
working hard, he's got a family, he's trying to provide for. He's
putting six percent of a salary way. I admire him for that. I
aspect him for that he's doing.It would be easy for him to say,
hey, I need that six thousanddollars to put towards expenses, to
put food on the table, tohelp pay the mortgage, your rent,
to take care of my family.But he's dedicated to putting six percent of
(37:15):
his salary away. It's better thannothing and more than likely there's a match
there. This is what we callfree money. When people and your grandfather,
I'm guessing would agree with me,James, When people they work for
a company and their company says,hey, if you put six percent away,
we'll match that. Maybe you knowthe matches differ for every company,
(37:37):
but that's free money. That's likegetting a raise. And as I say,
often, if you're not putting tenif you've never done a retirement plan,
if you're not putting ten to fifteenpercent of your salary away, you're
not putting enough. And people automaticallysay I can't afford that, and I
say, my quirky way, James, I say, make believe you're going
(37:58):
to work tomorrow morning eight o'clock.You find out you lost your job,
you're going to be devastated. Let'smake believe eight o'clock Tuesday morning they call
you back and say, hey,we can bring it back, but we
have to bring it back out often percent less salary. You're gonna jump
on it because you love that job. And the only difference is you're walking
into your business office tomorrow and saying, hey, I want to start putting
(38:22):
ten percent away. I promise anybodywho's listening to me, you will not
like me for the next several monthsbecause you're going to have less money that
you're living on. But I promiseyou in the next few years, when
all of a sudden you see tenthousand, twenty five thousand, fifty thousand
dollars in your pension plan growing,you're going to love me. And that's
(38:44):
how you get started. Your grandfatherwas right now on the spending part.
James you are, So you've nailedit. If you make fifty thousand dollars
a year, you can't spend sixty. And the people that used to take
money when they made all that moneyin their homes, the value of their
homes, and they would take itout because they had mortgage brokers saying,
(39:06):
hey, refinance, you can takesome money, put a pool in,
buy a car, take a vacation. They were taking that equity out and
they were spending it. Once again, you hit it on the head.
If you make fifty thousand dollars ayear, you can't spend fifty five or
sixty. You have to You haveto put ten percent away and spend forty
(39:28):
five thousand included in taxes. That'show you do it. That's the key.
It's a great point that you're bringingup, James. My wife and
I make almost the same amount ofmoney each each week, she takes home
twelve hundred dollars. I take homeeleven hundred dollars. What we did was
we took our money and we saidright off the bat, we're gonna take
(39:51):
away money from this take home soas if we don't even have it.
So her take home is nine hundredand my take home is eight twenty fi.
And what we do every single weekis we take five hundred and seventy
five dollars every single week and putit in a box. So we have
and that and every time that adollar amount reaches a certain amount, we
(40:12):
take that out and we put thatin another place. And we've done this
now for four years. We havesaved an incredible amount of money. And
how we did it was we justdecided. We just decided, listen,
we have to pretend we don't makethat money. We just have to learn
to live within the nine hundred andthe eight twenty five, which it was
(40:35):
four years ago. It wasn't evennine hundred and eight twenty five. It
wasn't even that. Now it's that. And we actually, you know,
we've got a little extra for dinneron a Friday night or whatever. But
my point is we've lived on thistwenty five percent saving. Of every penny
that comes into our home, wetake twenty five percent of it doesn't matter.
I don't care if you return bottlesat Stuarts or at the at the
Price shopper when you're you know,in the Sultra cans, whatever it is,
(41:00):
twenty five percent goes in that box, and when that dollar amount reaches
a certain amount, we pull itout and put it someplace else. James,
I should pay you to come onthis show. James, I should
pay you to come on the show. More off and man, oh man,
you are making it simple for thelistening audience to realize that, even
(41:22):
if they don't think they can savemoney, you just showed them away how
they could save money. I'm gonnagive you articulous James. I'm gonna give
you one suggestion before I let yougo, because I gotta let you go.
One suggestion. Don't put that moneyin a box. You can open
up our clients at SWAB it's justin the money market account they're getting over
(41:45):
five percent. James. That's moneyyou're leaving on the table. So as
long as you and your wife areworking so hard to put that money away,
don't put it in a box.Put it, open up an account,
let it start earning interests. Wehaven't seen five point two five percent
for just cash. You're being paidthat on cash. We haven't seen that
(42:07):
forever and ever and ever. Oh, what a great phone call from James
one eight hundred eight two five fivenine four nine, James, I admire
you keep up the good work.Calling every once in a while let me
know how you're doing, because youjust help people realize they can save money.
One eight hundred eight two five fiftynine forty nine. Any questions you
(42:30):
have, folks, give me acall. You know, short term bond
yields are like amazing. Three months, four months, six months, you're
getting almost you know, you're gettingover five and a half percent interest when
you're treasury five point four percent aten year treasury right now almost four point
(42:52):
three percent. Now we talk aboutthis, I'll remind you one more time,
why should you not load up onone year and less getting over five
and a half percent, because whenthey come to mature, and you never
lose money when you buy a treasury, folks, if you buy a six
(43:13):
month treasury, you're going to getfive point five three one percent annual,
so two point you know, twopoint seven five percent, but that's annual.
You're going to get five point threeall I'm sorry, five point five
three percent annual. And when thatsix month treasury built matures, you can
renew it again. Now the questionis will you get another five point five
(43:37):
percent I'm not sure. Maybe you'llget four point five, maybe you'll get
three point five. I don't know. And that's why laddering treasuries and we
say this all the time, andin my office does a great job.
We ladder less than one year.We go out to three year, five
(43:58):
year, seven year, and tenyear. We spread the risk because there
is interest what we call interest raterisk when these bonds mature. If interest
rates are lower, you're going toget lower and if interest rates are lower,
you're you're you're losing out, youknow, believe it or not.
Ten years is a long time.Six months isn't such a long time,
(44:20):
So not getting greedy and laddering thatthat bond portfolio out and getting you know,
maybe getting four point three for aten year treasury year in, year
out. And this way, whenthat six month comes due, you renew
it, you buy a new maybeten year, five year, depending on
where interest rates are, but yourladder a portfolio out. And we had
(44:45):
really a great, great conversation withthese new clients from Jersey and they the
daughter was adamant about buying CDs andfinally Vinny Testa, you know, one
of our cfps EPA and one ofour wealth advisors. And listen, this
is what he does for us.He does our tax planning and he helps
(45:07):
our clients. He says, you'renot looking at this right. You could
buy a CD and get let's sayfive and a half percent, but you're
paying state and federal tax on theincome. If you buy a treasury,
you're not paying state tax. Andfor this woman, she lives in New
York City, so she was payingstate and city taxes close to ten percent
(45:32):
that she didn't have to pay.And you have to you have to really
give it some thought, folks,when you're buying, whether bonds or CDs,
you really have to give it somethought, and you know, make
sure you're doing what's right for you. Every scenario is different. Every investor,
every taxpayer has different goals, objectives, and scenarios, and you need
(45:54):
to do what's right for you.So there you have it. You want
to not get greedy, You wanta ladder of portfolio bonds. Have those
that portfolio bonds be spread out sothat you're making the most overtime. That's
the key, diversifying and making themost overtime. The you know, as
(46:16):
I said, we got a bigweek coming up. But this Baron's article,
I haven't really had a chance totalk about it. It's a pretty
pretty, pretty nice article, andthey have a professor from Hudson Valley.
Beyond frontage of barons going strong,more Americans are working into their seventies and
(46:37):
eighties. What it means for theeconomy, the workplace, and the workers
themselves. And as soon as youopen it up, guess what Fred Sterniza
thinks about retirement. When he seesfamiliar names in the obituaries, or when
winter wind whips his upstate New Yorkhome, Sterniza, eighty one wonder whether
(47:00):
maybe it's time for him to stopworking as a professor of semiconductor manufacturing technology
at Hudson Valley Community College. I'mreading this, folks, right from the
parents. So here you got fredsin his eighties and he's still teaching,
he says. Then he quickly dismissesthe thought. I really enjoy what I'm
(47:22):
doing more than i'd enjoy retirement.And I know a lot of people that
are like that. Listen, ifyou're retired, what are you gonna do.
You're gonna play bridge, You're gonnaplay golf, You're you're going to
travel, You're going to do this, You're going to do that. Some
people just like working, and there'snothing wrong with that. Warren Buffett's still
working at ninety four years old,so you know, it's a great article.
(47:45):
But it brings in the home.It brings the home why people do
what they do. And here heis Freds in his eighties and Sterniza earns
high marks from his students and supervisorsat the college, so he's well thought
up. At Hudson Valley Community CollegeHVCC, he teaches a full course load
(48:08):
during the academic year. He arrivedthere in two thousand and one after a
varied career in business, academia,and state government. This guy sounds like
he can teach these students a lotof things. Folks were at the end
of the show. I hope youcome back tomorrow morning eight o'clock. You're
listening to Let's Talk Money, broughtto you by Bouscheven Andrew, where we
(48:29):
help our clients prioritize their health whilewe manage their wealth for life. You enjoyed today
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