Let's Talk Money

September 10th, 2023

Episode Transcript

(00:12):
Okay, perfect Zach, Good morningeverybody on this I guess cloudy day,
let's say, and yes, we'regoing to expect a little bit more rain.
Mother Nature, boy, she createssuch havoc all around the world.
It's just so sad, just howmuch how much misery she can bring into

(00:37):
our lives. But let's hope thatthat she calms down and old man Winter
takes over and hopefully he'll have abetter disposition and around the world so that
people don't have to deal with thethe havoc that Mother Nature brings on.
Good morning, folks, how areyou on this Sunday morning, September tenth.

(01:00):
I'd like to just take a second, because tomorrow is a day that
we'll never forget nine to eleven.And I'm sure that most of you know
exactly where you were on nine eleven. I know where I was. I
was actually on a plane on myway to California. And if you remember
Boston, New York, DC,you know three of the four major cities

(01:25):
on the Eastern Seaboard. I wasactually my plane was in Philadelphia. I
right in between both towers falling.I was put down in Philadelphia, and
I remember that day vividly. Andthe first thing I did when I could,
I made three quick phone calls,one to my wife, one to
my son's school, one to mydaughter's school, because my children knew that

(01:48):
I was on a plane going toCalifornia and we had no idea what was
going on. And I know peoplewho were who lost you know, family
members in nine to eleven. SoI think it's a day that we'll never
forget, and I think it willbe a day that will will always remember,

(02:09):
and hopefully we always remember, neverforget anyway, today I'm here to
hopefully get you pointed in the rightdirection to build your financial future to a
point where you can retire. Youonly get one opportunity to retire, and
you need to be prepared. Wehad a great show yesterday five callers.

(02:35):
That's a caller online when this showended. So if you have any questions,
call in early. Our phone linesare open. Zach Harris, my
longtime producer, is ready to putyou on the on the board so I
can pick you up if you haveany questions, folks, any questions whatsoever.
Remember there's no silly question when itcomes to your finance, so please

(03:00):
ask. I can assure you.There will be other listeners that will be
thankful that you ask. Our phoneline are open one eight hundred talk WGY
one eight hundred eight two five fivenine four nine. That's one eight hundred
eight two five fifty nine forty nine. Any questions whatsoever, give me a

(03:22):
call. I would love love totalk to you. So it's a pretty
big week in the markets, youknow. We have On Wednesday, the
Bureau of Labor Statistics will release theConsumer Price Index, better known as CPI.
This is something we've been following nowfor over a year, and we
expect economists to expect three point sixpercent year over year, and that's a

(03:46):
little bit higher than where we werein July. For the month of July,
we came in at three point two. For the month of June,
we came in at three percent forthe CPI. And remember a year ago
June, the CPI was nine pointone. So we've come off that high
point in a major way, andit's trending up a little bit. But

(04:10):
that's because of the numbers that areused to calculate the CPI, the core
CPI, which excludes food and energy. And it's crazy because, as I
said yesterday, we all need foodand energy. We can't get by when
you think about it, without foodor energy. And that's expected to come
in at four point four percent.It was four point seven previously, So

(04:35):
we'll see what happens there, butall eyes on Wednesday will be focused there.
And as I said, without foodand energy, the core is something
that the FED looks at. Andit's funny. Today we sit here gases
three dollars eighty four cents a gallonon average, and man, you know,
you know, you just go backa few years ago it was two

(04:58):
dollars thirty cents a gas and yougo back to to you know, the
two thousand and sixteen dollars ninety fourgallons, so almost doubled from two thousand
and sixteen. Here we are atthree dollars eighty four cents, and that
that's something that comes out of people'spockets, especially people that aren't making a

(05:21):
whole lot of money when they haveto go fill up their gas tank.
They're paying so much. And Iknow gas has come down. We were
at almost five dollars a gallon nottoo long ago. Just over a year
ago, we were hovering. Thenational average was around four dollars sixty cents
last summer, and it's come downquite a bit from there, but it's

(05:41):
still up quite a bit from fromwhere it was in recent times. And
as they said, for folks thatare filling up their gas tank in order
to get to work, folks thatcan't really afford to lose out on discretionary
income, that's that's money. That'sjust you know, when you when you
had the price of gas double overa short period of time, you know

(06:04):
that means you're paying twice as muchto fill up your gas tank. So
the core CPI, which excludes foodand energy, expected at four point four
percent. We'll see what happens Thursday. We had the European Central Bank.
You know they're going to come outwith what their monetary policy decision is.
Traders are pricing in a one andthree chance that the Central Bank will raise

(06:29):
its short term rate by a quarterof a percentage point to four percent.
We're at over five percent now,so I won't be surprised if the European
Central Bank doesn't raise. And I'mhoping that when our Fed Open Market Committee
meets next that they won't raise.I'm hoping they let because they've they've worked

(06:50):
hard. Believe me, they deservea lot of thought for missing this a
couple of years ago when they shouldhave been all over it and they weren't.
I've criticized them, they've criticized themselves. They've admitted. So I'm not
Monday morning quarterback with football season kickingoff. I'm just stating the facts.

(07:12):
They admitted that they missed it completely, and now they're trying to make up
for lost ground. And they've raisedthey piked interest rates a whole bunch of
times over the last eighteen months,and it's working. Inflation CPI coming from
nine percent all the way down tothree percent, it's working. So the

(07:32):
European Central Bank is facing the samechallenges that are Federal Reserve is facing,
and I think they'll probably raise Andthen also on Thursday, we have a
biggie. The current contract between theUnited Auto Workers and the Big three automakers
expires at midnight. The UAW authorizeda strike if no contract is agreed upon.

(07:57):
And you know, in this dayand age, it's so important for
people to have jobs, keep jobs. You know, this is about one
hundred and fifty dollarsand workers that cango out on strike, and that'll create
habit folks, you may see somevolatility if that happens. I hope it
doesn't happen. I hope they cancome to terms. A boy, it's
crazy how some unions can really reallydictate so much. And you know,

(08:24):
workers are are are making more nowthan they've ever made. You know,
I've gone over the minimum wage thatused to be nine ten dollars an hour.
Well, you know, companies likeI don't care if it's Walmart,
Costco, Amazon, Target, youknow they're they're starting out at least fourteen

(08:45):
dollars an hour. Fourteen to nineteendollars an hour, just those few companies
is what the starting pay is inminimum wage. I think the federal minimum
wage limit it's still somewhere around tendollars. But throw that right out the
window, because if these companies aren'tpaying a decent wage, giving flexibility and
good benefits workers, they're just notgoing to take the job. So the

(09:11):
market has forced companies to treat theirworkers better. And I'm all in favor
that workers need to bring home adecent paycheck in order to provide for their
family. There's nothing wrong with thatat all. So I'm actually happy about
that. I don't care if acompany makes less profits. And I know
the small independently owned folks, youknow, they were worried that their businesses

(09:33):
would shut down. You know,they may do. They may may not
make as much money, but throughefficiencies and better productivity because they have higher
morale with their workforce, they're gettingby. And it's expensive. It's expensive
to run a business, especially inNew York State, it's even more expensive
to run a business, so thatthat UAW potential strike on Thursday is a

(10:00):
big deal. We'll see what happens. And as I said, my eyes
are going to be focused on thatCPI report on Wednesday showing what CPI was
for the month of August, andI'm hoping, I'm hoping it's really coming
in at or below targets, sothat it shows that the the hikes that

(10:22):
the Fed is put in place sofar is working and that the Fed may
not have to raise interest rates again. That's what I'm hoping for. That'll
be good news from the markets.As you know from listening to the show,
optimistic on the markets. And ifyou've followed my lead, you've made
some good money. I know youlost money last year. There was no

(10:43):
place to hide. Last year,we talked about this a million times.
Both the stocks and bonds were down. Twenty twenty two was the perfect storm.
But the market bottomed in October,and since October the markets doing pretty
well. You know, if youput it in perspective. Since October,
the SMP is up about twenty percent, NASTAC is up about thirty five percent.

(11:09):
QQQ is up about forty five percentfrom the lows of October. And
if you got scared out of themarkets, you missed out on really really,
you know, making back most ofwhat you lost. The SMP is
still about eight percent off. It'sall time high, and folks, it
will go on. It will goon and make a new all time high.

(11:31):
It's crazy how it happens. Whenthe markets are often investors lose money.
They think the world's coming to anend. Guess what, folks,
look outside. The world's still goingaround and around and around. The world's
not coming to an end, andit won't come to an end. The
stock market won't go to zero.The stock market always goes up and down,

(11:52):
up and down, up and down, And ironically, the stock market
always goes on to make new alltime highs. This is what our clients
know and understand. We coach them, educate them, hold their hands when
we need to hold their hands.Our clients know that the volatility is part
of being invested. If you're ifyou have a well diversed five portfolio,

(12:15):
you have stocks and bonds. Andlast year bond investors found out the hard
way that bonds don't just go up. They lose money in bonds, just
like they lose money in stocks.But you don't lose if you don't sell.
You only lose when you sell.Now you take a paper loss and
you turn it into a real loss. The key is to hang in there
and you know, weigh it outyou're To date, the SMP is up

(12:41):
sixteen percent, seventeen percent with dividends. The NASTAC composite is up about thirty
two percent QQQ. The NASTAC onehundred is up about forty percent. That's
that's major, especially for our clientsbecause we own as much QQUS we do
the Broad Stock Market Index, soour clients have really benefited from that.

(13:05):
NASTACK and NASTAC last year it wasdown thirty three percent when the SMP was
down nineteen point four percent. It'svolatile on the downside and it's volatile on
the upside. But over time,and I give out the statistic often over
the last fifteen years, the SMPyear in year out up eleven percent a
year year in, year out,NASTAC sixteen percent year in, year out,

(13:28):
bonds two point four percent year in, year out. And that's why
having a well diversified portfolio, don'tbe afraid to have stocks in that portfolio.
It's okay, especially if you havetime on your side. And for
our clients, we take two yearsworth of what they need over the next

(13:48):
two year, and we put itinto a conservative allocation so they don't have
to worry when that next correction,bear market, or recession happens when on
pay where they lose money. Ourclients don't worry because we've protected them.
We take two years out, welet it drift down a little bit,
we replenish it. So let's sayanywhere between one and two years, our

(14:11):
clients are protected and they don't haveto worry about that market volatility. Our
clients are doing really, really goodbecause we're allowed to continue to manage the
portfolio during times of volatility. Thereyou have it, folks. That's kind
of the historical picture. A littleupdate where we are in the markets.

(14:33):
If you have any questions, giveme a call. I'm going to take
a fifteen second break, but thephone lines are open one eight hundred eight
two five five nine four nine.One eight hundred eight two five fifty nine
forty nine. Any questions whatsoever,give me a call. I'd love to
talk you. Hello and welcome back, folks. Thanks for letting me take

(15:05):
that quick break. The phone linesare open. One eight hundred eight two
five fifty ninety nine. So Appletook it on the chin this week.
It's our number one holding, soI'm not going to hold back. I
wasn't happy about this, but ithappens with Apple more times than not where
something, you know, because somany people own Apple. And I still
feel Apple is one of the bestcompanies in the world, not only in

(15:28):
our great country, but in theworld. Apples one of the greatest,
greatest companies. They probably have morecash on their balance sheet than most countries
do. And China, China madea move to basically limit Apple's reach,
you know, they basically you know, it came out in China's important to

(15:50):
Apple. You know Apple, Applerelies on China in a major way.
And Apple's down six percent since themarkets open on Wednesday, wiping out almost
two hundred billion dollars in market valuesince the band was reported by the Wall
Street Journal. And basically, Chinacame out and put a ban on using

(16:11):
iPhones by central government employees China centraland central government employees, and it's spooked
some investors. Beijing's prioritization of nationalsecurity over economic concerns appears to have hit
Apple. Apple's down six percent,and believe me, Apples still having a

(16:32):
pretty good run, but it was, you know, since Wednesday, being
down six percent when Nazac was onlydown two percent. It's really taken it
on a chin. And I'm notlooking to sell Apple. And China right
now is Apple's third largest market.That's why its share price got hit like

(16:52):
it did. About nineteen percent ofrevenue comes from China, so it's only
you have to expect that Apple's shareprice was going to get hit, and
they rely on China. But I'mpretty sure I'm hoping that Apple will will
overcome this, probably sooner than later. And if you own Apple, we're

(17:12):
not planning on selling Apple. SoI don't think that that news on China,
and let's face it, the worstof it is baked into the cake.
Right that that news was on Wednesday, And as I looked for the
week, Apple even though it's downsix percent since since Wednesday, you know,

(17:36):
it's I think. I think thiscoming week, I think you'll see
Apple recover some of that. Actually, it could be a buying opportunity for
those that wanted to own Apple thatnever would because it was so expensive.
Apple is really really come so far. You know, it's still up almost

(17:56):
forty percent year to date when theS and P is up with dividends about
seventeen percent. So Apple is donereally good, folks, really good.
And you know, if you wantto put in the perspective the last two
years, Apple is still up twentypercent when the SEP is flat. Just
think about that. For the lasttwo years the SMP is flat, Apple

(18:21):
is up twenty percent. So ifyou've owned Apple, you've done well.
As I said, it's our numberone holding. Our clients owned a lot
of Apple. Actually, our clientsown a lot of technology or overweight technology.
It's the most volatble sector out ofall the eleven sectors in the SMP
five hundred and decks. They takeall the stocks of the SMP and they

(18:42):
break it down between you know,technology, healthcare, utilities, industrials,
telecommunications. You get the picture.So technology is our largest overweight, and
I don't think we'll ever underweight technology, even though we take it on a
chin these When interest rates go up, technology usually gets hit the hardest.

(19:06):
A lot of growth stocks do becauseprojected cash flow and they put that into
the formula and all of a sudden, growth stocks get hit the most when
interest rates go up, especially technology. But over time, let me just
put it in perspective, over thelast fifteen years, NASTAC was up sixteen

(19:27):
percent year and year out SMP elevenpercent. So we'll take those times when
NASTAC takes it on a chin.Like this week, NANSTAC didn't do so
well. The Nastack composite was downalmost two percent. QQQ was only down
one point three six percent. TheSMP was down one point three percent.

(19:49):
So the QQQ was down just alittle bit more than the SMP. And
that's because those that magnificent seven didn'tdo as bad as the entire composite.
The entire composite was down almost twopercent for the week. And as I
said, year to date, we'reup forty percent with QQQ. And that's
what you own when you buy Q. When you buy nastac through QQQ,

(20:12):
you you're buying one hundred largest companiesone eight hundred eight two five five nine
four nine. One eight hundred eighttwo five fifty nine forty nine. If
you have any questions, give mea call, love to talk, give
and give you my opinion on whateverquestion you may have pertaining to your financial

(20:32):
future, investments, retirement planning,whatever it may be. I'd love I
would love the opportunity of hopefully helpingyou and helping others listening. One eight
hundred eight two five five nine fournine. So we also had a report
housing prices aren't falling anymore. Andit's funny you got to put this report

(20:52):
into into perspective because the housing sectoris one thing that the Fed low sat
and after declining on a year overyear basis for five consecutive months, the
longest run in eleven years, housingprices actually rose in July. How crazy
is that? Now? Why wouldthat be? Well, scarcity is the

(21:15):
big reason high interest rates have promptedhomeowners to stay put rather than to buy
new homes and take on more expensivemortgages, so there's not much inventory on
the market. I bumped in theken Clancy a couple of weeks ago,
and he and I had a prettylengthy discussion. Kevin is one of the

(21:36):
area's premier real estate agents, andKevin said, Steve, there's just no
inventory. You know, if ahouse comes on the market, people want
to look at it because there arepeople in the market for a house,
But the days of people selling theirhome and upgrading or making a ladder move

(21:56):
because interest rates were low and theycould afford to do it, those days
are over now. It's really whenwhen a house comes on the market,
there's very few buyers and people aregetting their asking prices. And I know
this for a fact. I justhelped the client down to New York City

(22:17):
sell her home and the realtors wantit to put it on the market for
a lot less. And you know, what do I know about real estate?
Right? But I've helped this clientmore times than one that I've helped
her three times sell homes, andi've i've i've i've I've helped her realize
some gains that normally she won it. In my common sense way of thinking,

(22:42):
we actually put it on the marketmore than the realtors want it,
and she actually got over asking price. And that's because there's not a lot
of good homes on the market.Folks, were going to take a break
for the news you're listening to.Let's Talk money, brought to you by
Boush, a financial group where wehelp our clients prioritize their health while we

(23:03):
manage their wealth for life. Thephone lines are open. One eight hundred
eight two five five nine four nine. One eight hundred eight two five fifty
nine forty nine. Kay, okay, okay, gosh. I love the

(24:03):
music. I love the music thatZach plays. Thanks Zach. One eight
hundred eight two five five nine fournine. That's one eight hundred eight two,
five fifty nine forty nine. Sobefore the news break, I talked
about how I helped the client closea deal, negotiate a deal on selling
our home, and I talked alittle bit about it yesterday. We do

(24:26):
more than just manage our client's wealth. Although clients predominantly engage our services to
manage their wealth because we are afiduciary, We have no conflicts of interest,
our returns are pretty good, andour expertise is second to none.
As you can tell from from thatlittle spot that you listen to. We
do so much more for clients.I mean just the tax planning side,

(24:48):
and this is something that a lotof a lot of advisors don't have a
clue talking taxes. I have fourCPA's, two i r s, and
rolled tax agents. Folks. Wedo so much tax planning for our clients
and having seven certified financial planners.The retirement planning we do for clients is

(25:11):
just we try to do it forevery client who engages our services. Not
all clients need it, but theclients that do use it, I think
they appreciate it. When I tellyou I have expertise that second to none.
I've surrounded myself by a team thatis truly second to none. One
of the reasons why in the country, Charles Schwab benchmarks fourteen hundred wealth management

(25:33):
firms and we're always in the topthree to five percent in the country,
folks, not in Upstate New York, in the country. And one of
the reasons we have clients in thirtyfour states since COVID, people don't need
face to face meetings anymore. It'samazing how many people prefer to not have

(25:53):
to take time off from work,hop in a car, look for a
parking spot, and do the sameto get home. You know, they
can just hop on their computer andmeet us virtually, and it's as good
as a face to face meeting.It's just it's crazy. The changes since
COVID, some were good changes,and that's one of the good changes.

(26:18):
We're actually we're able to meet moreoften with clients now, because clients would
have to plan out when they cantake time out to meet. Now we
just meet them. You know,we'll meet them on their lunch hour,
we'll meet them in the middle ofthe morning, in the middle of the
afternoon, We'll meet them whenever theywant to meet. They just turn on
their computer and away we go.One eight hundred eight two five five nine

(26:40):
four nine one eight hundred eight twofive fifty nine forty nine. So I
left you from the news break talkingabout how I helped the client this week
negotiate a deal with real estate.And you know it's a good cop bad
cop. Obviously, my client's thegood cop and I'm the bad cop.
You know, I kind of cutto the chase and work with the realators

(27:03):
to realators in this situation, andyou know, I kind of persuaded them
to go along my way of thinking. And my client, you know,
it wasn't a we're talking to anmillion dollars of transaction here, and she
benefited by almost a quarter of amillion dollars more because of my foresight.

(27:29):
And we actually sealed the deal onFriday. So we do so much more
than just manage money for our clients. And that's that's why I'm so proud
of the team that I'm surrounded by. We just we really help our clients
with just about anything financially speaking.But let me finish up with the home
prices. So housing prices are onthe rise again for the month of July

(27:55):
after five months of going down.And that's because there's no inventory. It's
just and we have a lot ofa lot of good realtors as clients,
and they all tell me that there'sjust you know, if you want a
house, you got to search highand low because there's just not a lot
of houses out there for sale anda lot of you know, if you

(28:19):
buy a five hundred thousand dollar house, and you put twenty percent down when
mortgage rates were three percent, whichwas not too long ago, your mortgage
payment principle and interest was seventeen hundreddollars. Today at seven percent, twenty
seven hundred dollars a thousand dollars morefor that same five hundred thousand dollars home.

(28:41):
If you want to keep your mortgagepayment at seventeen hundred dollars because that's
all you can afford, you're gonnalook for a home in the three hundred
thousand dollars range. That's what therise of mortgage rates are doing to home
buyers. So there's a lot ofhomebuyers that just aren't out there, let's
say, flipping their houses, arelooking to buy that that retirement home they

(29:04):
dreamt about because it's just so unaffordablebecause of mortgage rates. And the fifteen
year national average for a mortgage rateis almost seven percent thirty year right now
seven point six six percent. We'recloser to eight percent than seven percent,
and it was just over a yearago when we were looking at three percent

(29:26):
mortgages. Talk to a client thisweek, they have a mortgage at two
point eight seven percent. I said, that's a keeper. I don't care
how how much you may want tomove, you know, when when you
think of what it's going to costyou to replace that two point eight seven
percent mortgage, I'd rather see theclient by a second home, a retirement

(29:48):
home somewhere, then give up thathome. It's not a bad home,
but you put it in perspective,it's just the cost of making that ladder
a move or upgrading your home,and you know, it's it's crazy.
So the people that are selling,there's not many homes on the market,

(30:11):
and they're getting their price, anda lot of times they're getting more than
their price. If you don't putan offer in. If you look at
a home on a Tuesday, ifyou don't put an offer in by Wednesday
or Thursday, it's probably going tobe sold. One eight hundred talk w
g y one eight hundred eight two, five, five, nine, four
nine. Our portfolios are are arekind of slanted for growth, you know,

(30:37):
year to date. If if ifyou think about it, the SMP,
you know, not to be thedead horse anymore, sixteen seventeen percent
with dividends, QQQ is up fortypercent. If you look at the SMP
growth index. Now you take allfive hundred companies in the SMP and you

(31:03):
look at the growth component. Thegrowth companies up almost twenty two percent year
to date. Value up eleven percentyear to date. So we have a
slant on growth, thank god,one of the reasons why we're up as
much as we are in our portfolios. And it's not always like that.
If you look at the two yearreturn, remember the SMP is flat over

(31:27):
two years. Value, believe itor not, as up eight percent.
Growth is down eight percent, sothat's a huge swing. And if you
look at QQQ over the last twoyears, down one percent. But when
you look at a longer term,the over five years, NASTAC is up

(31:47):
one hundred and five percent, growthsixty four percent. The SMP, which
has both growth and value fifty fivepercent, value only thirty eight percent.
So growth, thank god, we'reoverweight growth. It's helped us. But
sometimes value feels good, especially whenyou get dividends. We'll talk a little
bit about that later. One eighthundred eighty five, five, nine,

(32:10):
four nine. Let's go to thefour lines. We have Bill in Boston,
like Hello, Bill, Hello,Hi, good morning. So question
we own our home and we areplanning to move to Tennessee, and I
just turned sixty. We've been savingup to be able to purchase the home

(32:31):
in Tennessee without selling this one.We will sell it, but we didn't
want to be contingent on that.So my question. We have about five
hundred thousand in a roth ira,five hundred thousand in a traditional and not
quite a million in a brokerage account. We're going to be about one hundred

(32:52):
thousand short to buy the house inTennessee with cash. Which of those three
would you recommend we take thee hundredthousand from in order to purchase without a
mortgage. Well, congratulations on retiring, especially at the young, rightful age
of sixty. I wish you thebest. We have a lot of clients
in Tennessee. It's amazing how manypeople are moving to Tennessee, so good,

(33:16):
good, good for you. Youknow, there's just so many parts
of Tennessee. You know, it'sjust a beautiful state. So I wish
you the best in Tennessee. Butfrom everything that you're explaining to me,
I would probably if you were ourclient, Bill, and I'm not sure

(33:36):
why you're not our client. Youmay want to give us a call and
get our take on everything, becausewe can help you with this. As
they said, we have a lotof clients in Tennessee, and if I
if you were one of our clients, I would probably have you take that
one hundred thousand from your brokerage account, because it sounds as though you've got
you know, twenty five percent ofyour investable assets traditional liar. If you

(34:00):
take it from there, you're gonnapay tax. You got twenty five percent
in a roth ira and I hateto see it take it there because that
roth ira can continue to grow taxdefer to be tax free when you do
take it down the road. Andin the brokerage account, I'm guessing you
probably have some dogs maybe, andthis may be a good time to kind

(34:22):
of clean things up with minimal taxconsequences. When did you retire? Exactly
this coming Friday? Oh, thiscoming Friday. You're retiring? Oh man,
you got to come into our office. Well, we have cake and
candles for you, Bill, don'tput that off. Well, yeah,
all the more reason to take itfrom from that, because you're gonna have

(34:45):
taxable income this year. You're goingto be in a high tax bracket.
And when you retire when you geta pension bill. It's residual based,
so that will continue for about ayear, okay, And then will you
have to live off your investments inorder to make ends meet? Yes,
basically yes. I don't plan itnot work, but yeah, basically yes.

(35:09):
But you'll do something probably brings lessstress and keep you busy and bring
in a few dollars so you don'thave Are you married, Yeah, so
you don't have to make your wifego out and work your true gentleman bill
a true gentleman. But in allseriousness, I would probably do that.
But take me up on my offer, give my office a call, let

(35:31):
them know you and I talked onthe radios this Sunday morning. And you
know, before you make some changes, remember when you retire, you don't
plan on dying. If you wereour client, we're going to plan for
you and your wife for the nextthirty five years because the chances are pretty
good that, if not both ofyou, in one of you are going

(35:52):
to be with us. And that'slong term when it comes to investing,
and we can help map out whenthat residual ends in a year where you
should start taking your money. Ithink it would would behoove you, so
give us a call in the officein the meantime, built congratulations, that's
got to be a beautiful day foryou. One eight hundred eight two five,

(36:13):
five, nine, four nine.Let's go back to the phone lines
we have carry and nisk unit.Good morning, carry, oh Steve.
I am such a fan and suchan idol of yours I could I'm not
even going to take up your timewith all the wonderful things you've helped me
with throughout the years. But thisis my simple question. I pay for
a life a term life insurance throughmy job. I switched crafts, so

(36:35):
I have to pay extra in orderto keep it, and it's about eighty
dollars a month. But I tookit when I was making a lot less
money. And I am married,my husband is you know, and we
have insurance through our jobs. Butagain, I took this term life if
God forbid, when I wasn't makinga lot of money, it would pay
off the house, it would payyou know, help my family, blah

(36:55):
blah. Anyway, my question isshould I pay to keep it or just
put that it's just a pittance.It's eighty dollars into more of my four
H three B or something else ormaybe start you know, another account and
just put that in there, becauseagain, my job will pay five times
if God forbid, anything happened tome. And I'm sixty one, so

(37:16):
I mean I am counting down.Boy. Let me tell you, and
I will be meeting you soon becauseyou and I are really wonderful friends in
my mind. And you know,I think I've called you since you were
on Sundays at six, and Iloved it ever since. And I thank
you for what we have. Myhusband should thank you a lot too,
well, you know, give mea second to reply. Speak tearing up,

(37:39):
Carrie, I mean, thank youfor all those wonderful compliments. I
can't thank you enough. You know, I've done radio now for twenty eight
years, and this is why Iget so energious about doing it for listeners

(38:00):
you who aren't clients, but listenerswho benefit from my outlook on the financial
markets and investment horizon. And thisis why I when I say I love
doing the radio, I love doingthe radio. My wife every once in
a while will say, don't youget tired of working on the weekends.

(38:20):
I said no, I said,I love doing the radio when and believe
me. Carry, you know yourcomments. I can't thank you enough for
them, and hopefully, hopefully Icontinue to give you good advice for you
and your husband so that you canretire. You know, at sixty one
years should be thinking about retiring.And this is this is why doing the

(38:43):
radio Zach. We're going to haveto edit this show and make sure we
keep Carry's comments on record. Thisis why I do the radio. Carry,
So thank you. So let mehelp answer your question. So you
know, and I admire you forbuying term insurance. Believe me, I

(39:05):
used to sell insurance before I wasa fiduciary. So if I go back
thirty years ago, I used tosell insurance, mutual funds and nuities.
I just never liked working that waywith clients. I never liked getting paid
a commission. I never wanted aconflict of interests, so I stopped it.
Now you know, if clients needinsurance, we refer them out.
We actually use Advisor Insurance Brokers,which is a locally owned company Brian Johnson

(39:34):
and Kevin Johnson father Son team andtheir colleagues, so they take care of
all of our insurances. Now theysell us our insurance, but Through the
years, I've had my choice ofinsurance, and all of my insurance policies
are term except from one. Ihave one VU well variable Universal Life,

(39:54):
which is kind of like an investment. You put your premium down into mutual
funds and you have the insurance deathbenefit. And I did that because when
I was younger, I need aninsurance in case something happened to me.
My mom was thirty one my fatherwas forty nine when they both died,
so I know that people don't alwayslive to their rightful age of eighty five

(40:17):
ninety ninety five years old. SoI was over insured in case something happened,
so that my wife wouldn't have togo out to work, would be
able to take care of my childrenand not have to worry about making on
the mortgage payment, and not haveto worry about being able to retire,
because I provided all that for herthrough insurance, and the best way to

(40:39):
do that was term insurance. Youpay just the pure cost of insurance.
It's cheap and I hate the wordcheap, but it's inexpensive and a lot
of insurance agents don't like selling itbecause they make pennies on a dollar if
they sell a whole life or auniversal life. They make a boatload of

(40:59):
money. Not to put the insuranceindustry down, There's a time and place
for permanent insurance like universal life orwhole life, and there's a time and
place for term and most people,especially young people, should be buying term
insurance so that they get the deathbenefit that they need. Now let me
fast forward. You're sixty one.You may not need as much insurance today

(41:22):
as you once did, and Idon't know that without doing a financial plan
for you, so I can't reallytell you should you get rid of that
insurance or not if you can affordit. What's the death benefit, Carrie?
It's one thirty five and at thetime it covered my house, burial
and extra. And again I wasn'tmaking a lot, but now I'm making

(41:46):
a lot more, and I amI have a coverage, you know,
five times my salary if anything shouldhappen while I'm working. And because I'm
a fan, I know that mynumber is not sixty two in freeing like
i'd like it to. But it'sexciting to get there next year, and
I'm going to hang in there,and I have so many other things to

(42:06):
break to you. About two becauseI also have a home equity at three
point one two five that i've tripplepaid. So if I said to my
husband, if we are thinking ofdoing anything before that closes out where we
can't draw on it, we betterdo it soon before the drawing time ends,
because Steve would Bouchet would say,that's a great rate. And if
we're going to do anything and wehave at least twelve more years to pay

(42:27):
on it, this would be,you know, that would be the time
to do it. See, Itold you I am a big fan,
so oh man, man, ohman, I hope before but you told
me that I wasn't at the time, for you know, I think it
was at least four years ago.So as we're getting to that time,
I think we have to meet.And I keep telling my husband I'm the
one that put my husband's TSP andfast forward and a C plan which is

(42:50):
the S and P stock and didn'tget and he lost his password. So
rode for quite a long time.And when he saw I said, thanks
Bouchet for that, because oh Carrie, man, oh man, you when
you're ready to come in, I'mgonna send limousine to pick you up.
I don't want you having this stressover coming into the office. And make

(43:14):
sure when you call my client conciergethat you let them know even know.
And I remember when Harmony first started. This is how long I've been a
fan. Let me tell you,I can't. I can't pay you enough
for these comments. There we go. But Harmony's one of my rock stars.
She's been with me seven years.She's you know, she's really she's

(43:37):
actually when when you hear the spotcertified private wealth advisor, that's Harmony.
Harmony. She started with me sevenyears ago. Within a year she became
a certified financial planner. It usuallytakes people to the three years. She's
that smart, that brilliant, andnow she went and she is now a
certified private wealth advisor. There's veryfew of those in the country. And

(44:01):
my clients are so lucky and fortunateto have Harmony on my team because she
can just help clients with so manydifferent things that that so many other investment
firms can't help them with. NoHarmonies. Harmony has been with me seven
years and I think the world ofher. She's got two beautiful daughters,

(44:22):
expecting a third child in October.So we wish her the best, but
she's great. So Carrie, youknow it's so it's hard for me to
tell you whether you should keep thatinsurance or not. I'm guessing you probably
don't need it as much if youcan afford it. You know, you
may want to keep it eighty dollarsa month if you can afford it until

(44:45):
you really do some retirement planning.The key is when you do retire,
for you and your husband to beable to have the lifestyle that you always
want it and if you can dothat between social Security, I don't know
if you're going to have any pensionsor live off your investments until you do

(45:06):
that retirement plan. I'm going tohave you hold off on selling selling that.
And if you know you want tocome in when you're retire to become
a client, then I'm gonna makean exception for you. I'm gonna I'm
gonna I'm gonna let my client concierge. Actually, I'm pretty sure Angie's listening.
She listens to every show. Outof all nineteen professionals, Angie listens
every Saturday, every Sunday, alongwith Angela, who is my director of

(45:30):
client services. So they probably arelaughing, saying, there's Steve Goes making
another exception. But my name's stillon the letterhead, so I can make
exceptions. But call, come in, get let us do a financial plan
for you. Let us get youpre set for when you do retire,

(45:51):
and then we'll be able to tellyou whether or not you should give up
that term policy. How does thatsound. Yeah, I'll tell you a
couple of years ago, when weone of the many times that we've talked
on the rady, you said thatI've got to be a friends and family.
So I think that you might alreadyhave some of my paperwork, but
it was a little too early forus to really get together and do anything.

(46:12):
But again, now that I'm hittingthat magic number, and my husband's
already there and he wants to retireevery day, but I said, oh
no, I can't. I can'tlet that happen. I can't let only
one of us be happy and dancingaround and so. And he actually is
a very hard worker and it wouldbe hard for him to just sit and
do nothing, and I know he'snot going to, but I want to
enjoy that that golden time together.So yeah, we will come and see

(46:36):
you soon. A coffee cake,so I'll have to bring up perfect.
Thank you Carrie. Folks, we'recoming up to the end of the show
Man Carry May in twenty eight years. She may make me tear up more
than anybody You're you're listening to Let'sTalk Money, brought to you by Bouchap
and Andrew, where we help ourclients prioritize their health while we manage their

(46:59):
wealth for life. If I can'tthank you enough for tuning in today every
Saturday at ten, every Sunday ateight. In the meantime, enjoy your
Sunday Funday. Stay healthy. Seeyou next week.