Let's Talk Money

Episode Transcript

(00:00):
The wgyq other forecast for this afternoon. Plenty of sunshine, will see a
high of eighty eight degrees today,Tonight starry skies, overnight low of sixty
three degrees. Tomorrow sunny, departy, cloudy, it'll be hot too.
High of ninety Monday, very warm, times of clouds and sun. High
of eighty nine Tuesday, very warm, chance of an afternoon or evening thundershower.

(00:23):
High of ninety one degrees Tuesday.With your forecast, I'm Bil Treferro
and here's ready a one, O, three, one and eight ten WGY.
The opinion's viewpoints and promises made duringthe following program are not those of
wgy it's staff, management, orparent company, iHeartMedia. This wgy programming
time is brought to you by theBouchet Financial Group. Are you working with

(00:44):
a fiduciary to help manage your wealth? Bouche Financial Group is a fiduciary and
has offices in historic Downtown Troy,Saratoga Springs, Boston, and South Florida,
advising clients in thirty four states.Stephen Bouche founded Bouchet Financial Group in
nineteen ninety and has acted as afiduciary for over thirty years as a fiduciary.

(01:07):
First and foremost, all we careabout is what's best for our clients,
where every part of the relationship istransparent. We manage our clients' assets
by fee only and do not sellinvestments. We have no conflict of interest.
Learn more by visiting their website Bouchetdot com. That's bou cch ey

(01:30):
dot com. Listen to Steve's weeklycommentary on WGY Mornings with Doug Goudie every
Wednesday morning at six fifty am.Tune in every Saturday at ten am and
Sundays at eight am for let's Talkmoney. Have you come into sudden money
because of life insurance proceeds, divorce, retirement, lump sum payout or did

(01:53):
you hit the lottery? If so, do you know what to do?
Call in now with any questions pertainto your financial future. One eight hundred
Talk WGY. That's one eight hundred, eight two, five, five,
nine, four nine. Here isWGY's financial analyst, Steven Bouche or one

(02:15):
of his capable colleagues. Well,well, well, well, hello folks.

(02:38):
I'm Stephen Bouchet and I'm your hosttoday. It's been it's been four
months since I've been with you.You know, It's funny, It's been
thirty years that I've been with youin total and never took more than a
week off. I'm blessed to bearound it by so many colleagues that help

(03:04):
me with the radio and help providean amazing show, good information. Even
though I wasn't on air with youfor four months, I was with you
in spirit. You know. Thebeauty about this show is it's on podcasts,
so you can listen to it anytimeyou want on your favorite podcast outlet

(03:29):
just go to Bouchet Financial Group,search for it and save it, or
you know, live by getting onthe iHeartRadio app. So I listened for
all four months, and I'm tellingyou, and I tell you, I'm
blessed to be surrounded by a teamthat I am. I am blessed in

(03:50):
more ways than not. They reallytruly make me so proud the job that
they did and continue to do,and we'll continue to do going in the
future. But today I wanted tocome on and be with you. You

(04:11):
know, it's been a long fourmonths, to say the least, in
many ways. You know, it'sfunny, for thirty years I've been on
air talking to you about you know, health, Wealth for Life, and
I tell you all the time thatit's your health first and foremost. That
means everything. If you're lucky enoughto have your health, then you're really

(04:39):
in a good spot. If youhave your loved one as part of your
life, you're so fortunate. Andif financially you can do things, don't
mess around because you never know whennumber one and number two could change.
And that's our tagline, you know, that's Bouchet Financial Groups Bagline Health Wealth

(05:00):
for Life, and it's something thatall twenty of my colleagues and I believe
in. As professionals, we tellclients all the time to put the priorities
first, you know, we kindof kid you know, you take care
of your health, will take careof your wealth, and will counsel you

(05:24):
on what to do and so forth. Well, you know, all of
that changed for me over the lastfour months. So you know, I
used to talk about my mom dyingat thirty one, my dad dying at
forty nine, and reasons why youknow, you should be prepared. You

(05:44):
should have your state matters in place, you should have the appropriate life insurance,
especially if you have a family well, now I sit in front of
you with a whole different outlook.H You know, my health was affected
and I lost my wife halfway throughmy treatments. So the last four months

(06:12):
for me have been different. Godhas put a lot on my shoulders,
which you know, I felt hehas since my mom died when I was
ten, But boy, I neverexpected the last four months. But today
I told my colleagues that I wantedto hop on board with you. I

(06:33):
wanted to, you know, talkwith you. I want you to call
in with questions because I can goon and on and on, folks,
but what I'm really here for isto help get you pointed in the right
direction. As I like to sayevery week, it may be a tough

(06:54):
show for me, so be patient. I'm I'm, I'm. I'm going
to put my best foot forward,as they say, and hopefully get back
in the saddle again. It isracing season up in Saratoga, so hopefully
I'm going to get back in thesaddle again. With regards to the radio

(07:16):
show, after doing it for thirtyyears, it should be like riding a
bike, right, I should Ishould remember how to do it, which
I'd do. But if you haveany questions, folks, any questions whatsoever.
I would love to hear from you. The phone lines are open.
Our longtime producer Zach is on vacation, so today we have Tom. He's

(07:40):
the top dog at WGY. Sowhen you call in, Tom will take
your call. The phone lines areone eight hundred talk WGY one eight hundred
eight two five five nine four nine. That's one eight hundred eight two five
fifty nine and he questions whatsoever.Give me a call and we'll talk about

(08:05):
the markets. We'll talk about yourinvestment plan and anything else you want to
talk about. Not only will willI be able to help you, But
today I have one of my colleagues, Vincenzo o Testa, who is a
CFP recently, and I'll let Bennytell you what he recently accomplished. We're

(08:28):
very proud of Anny, but Vinnieis sitting here alongside me, and Vinnie's
a pretty smart guy. Came froman amazing background at KPMG, and we
were fortunate enough to get Vinnie andhe has just been an asset. So
let me stop there. Vinnie,why don't you say hi to the audience
and let the audience know your yourlatest designation, Pieuse, I'm pretty proud

(08:54):
of you forgetting this designation. ThanksSteve. Yeah, Ny Tesla and one
of the wealth of ice Here atthe firm, I'm a Certified Public Accountant
as well as the c CFP,Steve said, and I also just passed
another designation which is called the eFA, otherwise known as an Equity Compensation
Associate. So what that really revolvesaround is and it really ties into my

(09:15):
background as a CPA and working intax accounting and obviously financial planning as well.
But here at the firm, wehave clients that work at public companies
and receive equity compensation in the formof stock options or restricted stock units,
restricted stock awards. And what thisdesignation does for me is it's given me
a little bit more insight on theplanning around exiting your stock options and equity

(09:37):
compensation and doing it in a waythat we're planning around your taxes, right,
We're going to minimize taxes in thatin that way, and then we're
also going to mitigate your risk froma single stock risk perspective, so you
know, you don't want to haveall your exit one basket. I think
it's really crucial to you know,diversify, right, and that's the name
of the game by default, andyou know everyone knows by diversify and investments,

(10:00):
that's one of the most important thingsbecause if things go wrong in a
single company, which happens all thetime, and you're exposed to that company,
can create serious issues for your financialplan. So one of the designations
I got just about two weeks ago, I found out I passed the test.
So that's a lot what we're doinghere at the firm. And you
know, Steve one of the strongestguys I know, really blessed to be

(10:22):
working under his leadership and a leaderlike him. Hey, Vinnie, thank
you. And as you can see, folks, when I tell you Vinnie
has a lot of expertise, He'sgot a lot of expertise. You know,
there's a lot of people that areout there managing money for clients that
don't put the time and effort intobroaden their certifications. I mean, when

(10:43):
you think about Vinnie having three designations, CPACFP, and Vinnie, what's the
there must be initials for this newone. What what's the shortcut ECA equity
conversation associated, So I mean that'slike galphabet soup Vinnie's name. He's got
just about every every letter in theoutphute after his name, and we're very,

(11:05):
very very proud of them. Soif any good job, as I
said, there's a lot of peopleout there that that they go visit an
advisor could be at one of thebig financial institutions or an insurance company,
and these people say they they areexperts, but they don't have anywhere near

(11:26):
the designations that you or most ofour colleagues have. To be a a
wealth advisor in our firm, youhave to have some kind of a designation,
and we're proud of that. Oneeight hundred talk WGY one eight hundred
eighty two, five five nights fournine one eight hundred eighty two, five
fifty nine forty nine. So letme just bring you up on the week.

(11:50):
You know, in some ways itwas a crazy week. We you
know, God just just look andyou know, I hate talking politics,
and we're already getting questions from clients, right Vinny, about you know what
happens if this person wins the electionor that person wins the election. Well,
I can honestly say we've done alot of research on this, and

(12:13):
I think Ryan actually even did awhite paper at one point. You know,
the markets, you may see alittle bump in the road depending on
what direction the results come in at. But really the markets could care less.
They really look at the fundamentals ofthe economy. They want to know

(12:33):
how the economy is growing, howinflation is situated, how many jobs we
have, how corporate America is generatingprofits. Are they earning profits like they
have been, are they softening orgetting better? Those are the fundamentals that
the stock market really looks at.So as we get closer to November fifth,

(12:56):
don't fret too much. If you'rereally nervous, you know, pull
some money out of the stock market. You could be sorry. Most elections
people are sorry people that feel thatthey are going to lose their shirt if
a certain candidate gets elected. AndI'm not here to promote any candidate.

(13:16):
But this was a crazy week politicallyspeaking. We had President Joe Biden,
who is now not the Democratic nominee. We have Vice President Kamala Harris,
She's got enough delegates for the Democraticnomination. So that was really out of
left field, I guess in someways. In other ways it wasn't out

(13:37):
of left field. It was somepeople expected it, but it was still,
you know, a crazy week inthe political circle. So that,
you know, is really how westarted off the week. We had traders,
you know, rethinking the Trump bet. You know, up until this
week after the the assassination attempt onformer President Trump. I mean, I

(14:03):
could politically speak and could it getany crazier? I'm not so sure it
could. So traders were rethinking,geez, maybe Trump isn't shoeing like they
were thinking just you know, overa week ago. So you know,
all bets are off the table.It's really going to be an interesting next
few months and we'll see where thingsplay out. And we'll see on November

(14:26):
sixth, the day after election day, where we are. China cut interest
rates, which was big news.This week. Stocks sold off on soft
earnings, mostly led by AI worries. The US economy grew by two point
eight percent in the second quarter,inflation ease slightly, just slightly. On

(14:50):
Friday, the Dow was up sixhundred and fifty four points, which was
almost three quarters of a percent.You know, it was it was just
a crazy week for the week.The SMP lost with all the good news
on Friday from the market standpoint,the SMP lost point eight three percent for

(15:11):
the week. NANSDAK was down twopoint one percent for the week. You
know, the markets didn't do aswell for the week. The biggest winner
this week, believe it or not, with small caps. And you know
we say in the office all thetime, right Vinny, that we like
when small caps do well because thatmeans that all the returns aren't focused just

(15:33):
on that magnificent seven on the bigtech companies, and the returns are really
being spread throughout the broad market.So when you have mid caps and small
caps taking part in this, welike to see that. The number one
performer this week was small cap.The SMP small Cap six hundred was up

(15:56):
three and a half percent, thesame as the Russell two thousand. And
if you're buying small cap indexes foryour portfolio, I would rather see you
buy the SMP small Cap six hundredrather than the two thousand. It's better,
better index. I think if youlook historically speaking, it's outperformed the
Russell two thousand. You know,head and shoulders above the performance numbers of

(16:22):
the Russell two thousand. So youhad the small cap index up three and
a half percent, SMP down pointeight and NASDACK down about two two percent.
The one hundred QQQ is down twopoint five percent. But for the
year so far, year to date, you got the NASDAC up fifteen percent,
QQQ is up thirteen percent, theSMP is up fourteen and a half

(16:47):
percent, and the Russell two thousandis up about eleven and a half percent.
That's good news. For a longtime, the Russell two thousand was
lagging the small cap SMP. Smallcap six hundred is up only eight point
four percent. So I just gotdone saying Historically speaking, the S and

(17:07):
P six hundred outperformed to Russell twothousand, but not so far this year.
But it's it's early and you can'tjust measure something over you know,
seven short months. So Vinnie,you know, I know you you you
with with your new designation and everything. You got a couple of things that
I think is really interesting, especiallyfor the listening audience that work for big

(17:30):
companies out there. So I'm goingto take a quick fifteen second break.
On the other side of the break, Vinnie, let's talk about a couple
of things that that you are veryvery qualified to talk about and hopefully we'll
with the appetite of the listening audience. Folks, if you have any questions,
give Vinnie or Eye a call oneeight hundred eight two five five nine

(17:52):
four nine one eight hundred eighty twofive fifty nine forty nine, any questions
whatsoever. Let us take a quickfifteen second break. If you want to
learn more about Bouchet Financial Group,visit their website Bouche dot com. That's
b O U C h E ydot com. Sign up for their blog,
which is updated every week Stephenbouche dotcom. Follow them on Twitter at

(18:17):
Bouchet Group. Like them on Facebook. The phone lines are open eight hundred
talk w G Y. That's eighthundred eight two five five nine four nine.
Here is Stephen Bouche. Okay,I I think we're on a Are

(18:37):
we on tom? All right?Perfect? Thanks folks for letting us take
that that that quick break. Thephone lines are open, Give us a
call one eight hundred eight two fivefive nine four nine. So Vinnie,
you know, just becoming a newe c A. You know, talking
about equity compensation which really ties alsoin a way, and I've been talking

(19:02):
about this for the thirty seven yearsthat I've been advising clients why you should
roll your four oh one K overto an IRA. So why don't you
take a couple of minutes and kindof go over you know, what the
listening auditing should be thinking about,especially with regards to rolling your four oh
one K over to an IRA,which I think is the most important thing

(19:23):
people can do when they leave ajob. Yeah, it's really important.
So, you know, to begin, I'll start talking about why you should
roll your four oh one K overto an IRA. There's a lot of
benefits of doing so, and I'llkind of go through the benefits and starting
with the fact that you have moretransparency in terms of your investment choices.

(19:45):
Right, So, while your moneyis in a four oh one K and
you you have your money and youremployer retirement plan, you don't have as
many investment choices as you would ifyour money was in an IRA. Right.
So the four one K is administered, you know, by a company
and they lay out the investment choicesand they're pretty broad. But when your
money's in an IRA, you're ableto basically purchase anything you want. Right.

(20:07):
You could purchase single stocks, youcould purchase et s, you could
purchase mutual funds, which we don'tdo here at the firm. We only
use ets So when the money inan IRA, you have so much more
choices to choose from. And especiallywhen you're working with an investment manager who
is planning around your financial plan andyou know knows what your goals are in
retirement, you could kind of havethem invest your money in a way that

(20:30):
is going to meet your goals,right, and when it comes time for
retirement, or even if you areretired, right, that's at that point
what should be automatically rolling over yourfour to one K to an IRA.
Your investments are laid out in away that you know when when you reach
certain age and your goals will bemet. The other aspect of rolling your

(20:52):
four oh one K over to anIRA is the fact that the four oh
one K has high fees because there'sadministrative fees, there's higher investment fees,
and there's also management fees in thefour oh one K. When you roll
your money over to IRA, thoseadministrative fees goes go away and you might
be able to invest in investments thathave lower investment fees. So you know,

(21:14):
we use ETFs here at the firm, our portfolio has an average expense
ratio within across the board, withinour ets of about point two A four
to one K could potentially have,you know, expenses of point eight to
one percent on the investments that theyhave within their four to one K plan.
So if you think about that,let's just say, to make numbers
easy, the four oh one Khas an expense ratio of one percent.

(21:37):
Our portfolio has about point two percent. It's a point eight percent difference on
account of a million dollars. That'seight thousand dollars a year. I mean,
that's a big significance, especially overthe long term when we're talking about
compounding returns. That eight thousand dollarscan make a significant difference in the balance
of your account after extended period oftime. So rolling over your four oh
one K to an IRA can saveyou. And especially if you're retired,

(22:03):
you know, you're paying in ministryof fees in that four one K that
you're not receiving benefits for right Soyou know, really advise our clients that
they have outside four o one k'sto roll them over to an IRA,
and you know, and we managethose iras for our clients. You know,
Vinnie, it's a it's a goodpoint, and a lot of people
don't think about the cost. Basically, what you're doing is, you know,

(22:23):
you may love your old co workersand working with them and mingling with
them, but when you lead thatcompany, why should you be paying for
their share of the four one Kplan? And that's really what you're doing
between the fees, because most fouron one k's are made up of mutual

(22:44):
funds, and you'd be surprised howmany for oh one k's not only have
mutual funds, but also have annuitieswhich have even higher fees. But there's
also that fee, that administration feethat you're paying for, and basically that's
to keep the plan in motion.And what you're doing is you're paying for

(23:04):
all those coworkers that you left behind. So fees are real important. And
I've been you know, listen,folks, I told you I've been helping
clients for thirty seven years. I'vebeen in business for thirty four I've been
a fiduciary since nineteen ninety three,back when nobody knew what a fiduciary was.
And what that means in a nutshellis all we care about as a

(23:26):
firm is what's right for our clients. What's the best advice. I always
say, we'd like to have thebest portfolio we could possibly have the best
diversification without taking too many risks inthe lowest fees possible, and I've been
using. As many pointed out,our portfolios right now are mostly ETF so

(23:47):
we manage about one point three billiondollars. That's a lot of money,
and we're not buying and selling stocksevery day. We do have two stocks
in the portfolio, Apple and Amazon, which have been just amazing, amazing
holdings for our clients. Our clientshave been very happy with the exposure we've
had to Apple and Amazon. Sowe do have, you know, those

(24:08):
two individual stocks in the portfolio,but most of our portfolios made up of
ETFs. And when you look atour top ten holdings, because people say,
geez, you know, I waswith some buddies and you know they
own this stock that stock, Isaid, you owe those stocks too.
Just because you own ETFs doesn't meanyou don't own stocks. You own stocks

(24:30):
within the ETF with less risk andas many points out, less costs compared
to mutual funds and four O onek's you know, then he just gave
the numbers point eight to one percentthe average fee, and the mutual fund
is one percent or more. Inannuities it's two to three percent or more.
There's a lot of fees out therethat are hidden. And ironically today's

(24:53):
Barns I picked it up at Stewart'son my way. In Today's Barrens,
you know, there's about an eightpag article on the one hundred best annuities
richer payouts in terms, and theylead off with an interview with a woman
who bought an annuity and basically shesaid when when she was asked to sign

(25:14):
on, she had a heap ofbattling forms, she became uncomfortable with how
little she understood the annuities terms.There's a reason why these insurance companies give
you so many forms a contract,just a heap of forms that they're they're
they're they're hoping you don't go andread through because of the fine print.

(25:37):
And when you look at all thefees that are in a nodies, one
reason why we are dead against thenodies. Fees matter. So, Minnie,
you bring up a good point aboutfees and just why it's so important
for you know, investors in generalto look at fees and you know,
if they haven't asked their their theirtheir advisor what kind of portfolio they had,

(26:02):
they should. Hey, folks werecoming up to the bottom of the
hour. You're listening to Let's TalkMoney, brought to you by Bouchef and
in group where we help our clientsprioritize their health while we manage their wealth
for life. The phone lines areopen. Give us a call one eight
eight, two, five, five, nine four nine. We'll see you
on the other side of the newsbreak. The WIQ weather forecast for this

(26:26):
afternoon. Plenty of sunshine. We'llsee a high of eighty eight degrees today
Tonight, starry skies, overnight lowof sixty three degrees. Tomorrow, sunny
to partly cloudy. It'll be hottoo, high of ninety Monday, very
warm, times of clouds and sunhigh of eighty nine Tuesday, very warm,
chance of an afternoon or evening thundershower. High of ninety one degrees Tuesday.

(26:49):
With your forecast, I'm Bill Treferro, and here's ready a one to
three, one and eight ten WGY. You get one opportunity to retire and
if you aren't prepared, you can'tgo back and make up for it.
Are you prepared? Does your advisorhave enough experience to manage your wealth?
And do you trust their advice?Bouche Financial Group has offices in historic Downtown

(27:12):
Troy, Saratoga Springs, Boston,and South Florida. To learn more,
visit www dot Bouche dot com that'sbou Ch e y dot com. To
schedule a complimentary in person or virtualconsultation where we will analyze your financial wellbeing,

(27:33):
Please call our client concierge at fiveone eight seven two zero thirty three
thirty three. That's five one eightseven two zero thirty three thirty three.
Stephen Bouche has surrounded himself with twentytalented professionals, including seven certified financial planners,

(27:55):
four CPAs, two IRS, enrolledagents, one accredited investment fiduciary,
one certified divorce financial analyst, onecertified private wealth advisor. Now this is
expertise you can trust. Thank youfor staying with us through the news.

(28:15):
The phone lines are open one eighthundred talk WGY that's one eight hundred eight
two five five nine four nine andwithout any further ado here is WGY's financial
analyst, Steven Bouche or one ofhis capable colleagues. You gotta love this

(28:49):
song. It's appropriate for my debutafter four months, So thank you Tom
for having this this music. Andit sounds as though we're having some technical
difficulties folks, So Tom, hopefullyyou know, if callers call in the

(29:10):
they will be able to get through. So if you tried calling in in
the first half of the show,please try again. Tom has it fixed.
It was just a little technical difficulty. We are here and we are
live. I'm sitting here with VincenzoTesta, CPA, CFP, E c
A. I mean, that's alot of letters in the alphabet. Vinnie

(29:33):
and I are talking and the phonelines are open one eight hundred talk WGY
one eight hundred eight two, fivefive nine four nine one eight hundred eighty
two, five fifty nine forty nine. Any questions whatsoever, folks called Vinnie
and I. We'd love to talkwith you. So we're talking about four

(29:53):
o one ks, and Vinnie eloquentlypointed out the pros and cons of you
know, when you leave a job, why you shouldn't leave your forumone k
behind especially the fees. It maybe easy to leave it behind, but
folks, the fees in these foremank's are big. And you know,
before the news break, I wentover the portfolios that we have. You

(30:18):
know, our our portfolios are rocksolid. We pay attention to fees,
and you know our as many pointedout, our total all end cost is
point two percent point two, awhole lot less than the average mutual fund
of about one percent, and annuitiestwo to three percent. Just that savings

(30:40):
alone has been he said, ona million dollar portfolio can save you a
lot of a lot of money.Not only do you not want to leave
your forumon K behind? And Ido this for a living. And you
know I shared with you how Ilost my wife over the last couple,
you know, months, And Ican't believe when you just think about insurance

(31:03):
policies and different things, how easyit is to forget about different things.
You know, having a well thoughtout plan, having everything laid out is
so important. With four one ks, you'd be surprised how many people forget
that they worked at this company orthat company decades ago. So that's another

(31:23):
important reason, Vinnie, why peopleshould get out of those four all one
case one eight hundred eighty two,five five, nine, four nine.
Let's go to the phone lines.Where the phone lines are working. We
have Paul in Connecticut. Hello,Paul, Hey, Steve, I'm glady
hearing back in radio. I havea respect for your firm, but I

(31:44):
do have a technical question and twoobservations. A friend of mine has a
four to oh one K. They'reaged seventy three, and they have to
take the money out as an RMDbefore April one and next year. They're
trying to get the money rolled overto an IRA, which I discussed with
him for the better part of theyear. And they're claiming that the company

(32:06):
that we used to work for togetheris saying you have to do the rm
D from us. And I said, read the planned documents and I didn't
see anything in them that suggested thathe was handcuffed to do that. And
then I said, look at I'lllook at the I R S rules,
but do you have a real clearunderstanding on that? Yeah, they say,

(32:27):
because go ahead. Yeah. No, I was going to say,
you know, IRS wants their moneyand they don't care if it comes out
of the fouralhmon K or the IRAVinnie, do you know if there's anything
specifically that says, if you're intothat year where the money has to come
out of the forel onon K,is he still working? Paul? All

(32:59):
right, so we don't have PaulBennie, but they you know, Vinny,
I don't if he's still working,it's a whole separate set of rules.
If he's retired, he should beable to roll that four O one
K into an IRA. And yeah, I mean, the plan administrator can't
force you to take the R andD. I mean really, I mean
obviously you shouldn't do this, butyou could just not take the R and

(33:22):
B and get penalized. Right.The plan administrator, I don't think,
would ever be in charge of whetheror not you take your RM D from
the four O one K and shouldeasily be able to roll it over to
an IRA. I've never heard anythinglike that exactly. And Vinny, you
know, just real quick, what'sthe tax if somebody says, hey,
I'm not taking my R and D, which the IRS requires you to do,

(33:45):
what's the tax? Real quick?I think the penalty is twenty five
percent, but let me double check. I think it was fifty at one
point. But yeah, it's twentyfive percent XIZ tax on top of the
federal and near state tax that youwould pay as well. So it's pretty
crucial. If you don't take yourrm D could be a big issue for

(34:05):
you. Definitely very important to stayon top of. That's why it's good
to work with an investment advisor,right. I mean, we have our
client service team that is very diligentfor all of our clients that are at
R and D AGE. We trackit, We make sure that the clients
tak We call them multiple times ifyou know they're not responding, to make
sure they take their arm because weknow how important, how crucial it can
be from a you know, financialperspective for those clients. Exactly one eight

(34:30):
hundred talk w G Y one eighthundred eight two five five nine four nine.
The phone lines are open and theyare working. Let's go back to
the phone lines. We have Tomand Gilderlin. Hello Tom, Hello Tom,

(34:52):
Tom, dropped Tom, give usa call back. One eight hundred
eighty two five five nine four ninelost Tom. Any questions you have,
folks, Benny and I are here, so you know Benny, great great
great info on the four one casebetween the fees between losing track of these

(35:13):
plans over time, and you'd besurprised how many clients we have come in
that forgot. You know, theyhad these pension plans and they lose complete
track of of these plans, andit's money that they're leaving behind they you
know, consolidating into your own individualretirement account, which you have full control

(35:37):
over, is absolutely absolutely the bestthing, and especially from an investment standpoint.
Anny anything else you want to talkabout, Yeah, I mean,
I just wanted to touch base onwhat we're talking about when it comes to
working and when you know, ifyou're at R and D eight and you're
still working and your money sitting ina four to oh one K, you

(35:58):
don't have to take your R andB, believe it or not. And
that's one of the issues we comewith clients. Right, So it's obviously
beneficial to roll over your four Oone K two an IRA, right,
but that might change if you're stillworking at and you're at R and D
ah because you don't have to takeyour R and D if it's in the
four one K when it goes tothe IRA, you do. So just
wanted to clarify that if you arestill working, you're at R and D.

(36:20):
Age don't have to take your Rand D from your four one k
yep. So Benny, you youyou work day in, day out with
our clients saying you know we areOur returns have been really stellar. Ryan
and the Investment Committee have done agreat job with the portfolios, the mix
of investments that we have. Youknow, I don't care if it's getting

(36:43):
out of bonds and the fall oftwenty twenty two and getting back in at
the right time or being in theright areas of the stock market. Our
clients have really benefited. And youknow, this is a big week for
the stock market. Last week wasa crazy week between politics and AI and

(37:05):
you know China cutting rates. Youknow the inflation report that came out yesterday
that was a little softer than expected. That kind of confirms the CPI report
that was a little softer than expected. In the jobs report, which was
really all good news for the economy. It's almost like a goldilocks economy right

(37:29):
now. But this coming week,Vinny, we got more than one hundred
and fifty s and p five hundredcompanies that are going to be announcing results.
We have four of the Magnificent seven. Remember the Magnificent seven is what's
been powering these returns. We haveMicrosoft on Tuesday, Meta Platforms, which

(37:50):
is Facebook on Wednesday, Amazon andApple on Thursday. That's a big day
for us because those are our toptwo holdings. A few you know,
and Vinnie was going over the factthat we own ETFs in our portfolio,
which we do mostly, and theonly individual stocks we own our Apple and
Amazon. But when you look atour top ten holdings, when you add

(38:13):
up all the stocks that are inthe ETFs and individually held by us,
our top ten holdings are pretty wellrounded for our clients. We got Apple,
Microsoft, Broadcom, Amazon, Navidia, Pepsi, Meta, Am,
Jen, Costco, Eli, Lilly. As you can see, it's a
pretty rounded portfolio. Those are ourtop ten holdings. So when clients say

(38:35):
to me, hey, you knowmy buddies own you know, they were
working with a stockbroker and they ownall these individual stocks and they're really making
a lot of money. I said, Listen, the headline news is sixty
five to eighty five percent of thetime stock pickers can't outperform the indexes,
which is why we have our corepositions in the indexes and we complimented with

(39:00):
tactical positions and our returns have beenpretty good. So Thursday is a big
day for us because we got Amazonand Apple that are reporting results. On
the last Wednesday, NASDAC had itslargest Monday decline since October of twenty twenty
two. It wasn't pretty being inNASDAC. On Wednesday, NASDAC was down

(39:22):
six hundred and fifty four points.You know, when you think about how
the week started out Monday, NASNACstarted shot right up two hundred and eighty
points, down ten on Tuesday,down six hundred and fifty four on Wednesday,
down one hundred and sixty on Thursday, up one hundred and seventy six
on Friday. For the week,as I said, Nasdaq Composite was down

(39:45):
about two percent, and you knowit's it was just one of those days,
but nothing to thread over. Iguarantee our clients you're gonna get days
and weeks and months like that,and you can't let that get to you.
So this coming week from an earningstandpoint, is going to be huge.
And then on Wednesday we get theFederal Market Open Committee and they'll announce

(40:07):
what they're doing with their monetary policy, and I think they're going to do
nothing, but I think the betright now is that they'll probably cut in
September, and the FED doesn't wantto wait too long to cut. They
don't want to miss the opportunity tocut. They need to be ahead of
the game. So to be interestingto see what FED Chair Jerome Powell says

(40:29):
on Wednesday when he comes out,usually it's about two fifteen on Wednesday.
It'll be a real important meeting,and I think there's a ninety percent the
betting audience out there is betting theirmoney that in September, the next time
they meet, you'll see a ratecut. And when that happens, folks,
that's good news for the stock market, which is why we're fully fully

(40:52):
invested. And then on Friday wegot the jobs report. You know,
the forecast is about one hundred andseventy seven thousand, an increase for nonfarm
payrolls. We had two hundred andsix in June, and the unemployment rate
is about four point one percent.So it's a big week coming up,
and it'll be a big week inthe stock market to see how the stock

(41:15):
market reacts to everything that's going on. But if you're if you're a good
investor, I'm not even going tosay a long term investor. If you're
a good investor, you cannot letthese headlines make you crazy and have you
make irrational moves and decisions of gettingin and out of your investments. As

(41:37):
I like to say, volatility shouldbe your best friend. And when you
see volatility, take advantage of it. Maybe take some money out of some
dogs, put it into some areasthat got beat up that you like better.
But don't try to time the market. Market timing does does not work.
One eight eighty two, five,five, nine, four nine.

(41:58):
Let's go back to the phone lines. We have Paul back on hold.
Hello, Paul, Yeah, yeah, I got cut off. So I
wanted to appreciate the answer you gaveme, and I'll tell my friend the
next observation is more of a complexissue. And I invest my own money
and I'm a nonpracticing CPA. ButI listened to a guy named Michael Green
who was interviewed by a guy namedAdam Tagger on a webinar or of some

(42:22):
sort, and he made a pointthat I've been following and thinking through since
maybe a decade or longer regarding passiveindexing, notwithstanding the fact that you end
up, you know, with feesand so forth on active managers, what
you said is correct because it's hardto grind out nine point one when you're

(42:45):
charging fees of one point three,let alone, if you go to a
money manager like you and you're buyingmutual funds and all of a sudden it's
another forty or fifty or whatever basispoints. I get that, But his
point was the money flows of olderpeople coming out older to be defined right
sixty fifty eight, I don't knowversus passive indexing is creating a tidal wave

(43:10):
of buying equities that have no relevance. Like David Einhortez stated too, I'm
not going to use the word pealone, but cash flows, balance sheets,
income statements, price to earnings,and I kind of agree with him,
But he said, when this stops, we don't know. But right

(43:30):
now, all the ratios of moneycoming in from the average person in a
four to oh one k nowithstanding ETFsand you know, spiders and whatever is
going to indexing, and nobody's reallylooking at what they're buying, and the
forced buy is occurring, creating situationswhere companies are grossly overvalued and they're not

(43:54):
doing the Warren Buffett thing I wantedyou to comment on that, I get
off. And the last thing isregarding multi year guaranteed annuities. I'm a
proponent and I stack them because I'msixty six and I don't I'm not going
to pay fees and surrender charges.I don't care that I'm paying two percent

(44:15):
or two and a half spread overfour years. I don't care. And
I'm grinding six to six and ahalf on a couple because I don't need
to take a lot of risk witha chunk of my money. And I
know that the bond market I buymy own treasuries can throw off five right
now. But to your point,if the FED cuts, it changes,

(44:37):
and I don't need to buy corporates, and I'm not looking for capital appreciation,
I'm looking for compounding. So thereis a place for multi year guaranteed
annuities. I think in portfolios.You can comment on it now, or
I'll just stand up, you know, with your whatever you want to do.
No, I appreciate that, Paul. Let me start with the low

(44:59):
hanging fruit first, and let melet me grab those those riped apples,
and you know everything else that's that'slow hanging, and that's the annuities.
You know, I'm not a proponentof anudies. A lot of people are
out there buying annudies because it's beingsold to them in a very bad,

(45:22):
bad, bad way. They usethe word guarantee a lot, and when,
especially during times of volatility, wheninvestors hear the word guarantee, it's
comforting to them, you know,it's it's like going home having a good
home cooked meal. They just feelthat that guarantee word is important to them,

(45:45):
and they don't realize the money thatthey're leaving on the table. The
fees that they're paying within annudies arejust astronomical. And you're paying, you
know, most nudies, especially whenyou add all the bells and whistles,
you're paying three percent internal fees,internal fees that you're paying inside these annuities,

(46:07):
and you have to ask yourself ifyou're paying them to three percent and
them being the insurance company. Soanybody who who offers you an annuity is
not a fiduciary because they're selling aninsurance product and making a six percent commission
on that. To me, youcan't call yourself a fiduciary. And I've

(46:30):
had debates with some insurance professionals thattell me they are fiduciaries, and I
say, you're not a fiduciary.If you're selling an annuity making a six
percent commission, you are not afiduciary. There's just no way you can
make me believe that you're a fiduciary, that you have your investor's best interests

(46:50):
at heart, because you're selling thisinvestment that you're making a boatload of money
on. So for those of youthat reason he bought an annuity, go
back to the salesperson that sold itto you and asked him or her,
you know, if they disclosed thecommission that they made. I'll bet you
a dollar to donuts that they didnot tell you how much money they made.

(47:15):
But they're making a lot of money. Most people buy these annuities thinking
they're no load investments with no fees, no commissions, because they're all in
the back end of it. Goingback to that Baron's article today, and
the first paragraph talks about this womanwho says I got a heaping pile of
papers that I had to sign.Well, there's a reason why there's a

(47:37):
lot of stuff buried in that insurancecontract. And Paul, if you had
a well diversified portfolio, you canget the same six percent and have more
control over your money. I canpromise you that the key is disciplined.
With an annuity, you can't goin and get your money back. If

(47:59):
you have your own portfolio, youcan kind of haphazardly hurt yourself. So
you have to be disciplined. Andif you have a well thought out portfolio,
I'll show anybody that will take thetime to sit with me why a
well thought out portfolio will be somuch better for them than an annuity.
And I wouldn't be buying an annuityjust for the word guarantee. Remember,

(48:23):
guarantee is two things. One,the insurance company is guaranteeing and so you
have to hope the insurance company staysin business. And we're lucky. As
much as New York State is crazywith all the regulations, the one thing
that New York State does well isregulate the insurance industry. And we have

(48:43):
one of the toughest states in thecountry for insurance companies to do business.
So buying an annuity in New YorkState is a lot different than buying an
annuity in other states. That's theonly good thing about being in New York
and buying an annuity. But theguarantee come to guaranteed payout and everything you
know there, you have to askyourself if let's make believe the stock market

(49:07):
average is ten percent a year,and if they're guaranteeing you and bonds average
five percent a year and those thoseare ninety year almost one hundred year historical
averages, and an insurance companies guaranteeingyou six seven eight percent, how is
that happening? They obviously are takingsome risk, correct because you know right

(49:29):
now, you know the yield ona ten year Treasury note is you know,
under five percent four point two percent. So if they're guaranteeing you six
percent and guaranteed money from the governmentis four point two percent, how are

(49:50):
they doing that? They're taking onrisk, which means you're taking on risk
and you're paying a fee to takeon that risk. So why don't you
just have a well thought out portfolio? That's all the insurance company is doing.
They're playing around with stocks and optionsand puts and calls, and that's
how they're getting you more than Listen, the most guaranteed paper in the world

(50:14):
is the ten year US Treasury note. So if that's yielding four point two
percent, folks, and you're gettingmore than four point two percent, then
you're you're you're taking on risk.I'm such a I wish people were better
informed with annuities. I'm just notfor it. Now. You know,
Paul makes a good point. Itmakes him feel comfortable. So if he

(50:37):
buys it knowing all of those feesand he feels comfortable because he doesn't have
to do anythinking, then at theend of the day, that's all that
matters. And that's that's good forPaul. You know, Paul's able to
sleep at night. Piece he's gotan insurance company guaranteeing him a certain amount
of income. But do your homeworkbefore you just go out and buy an

(50:58):
annuity. Absolutely. Now, withregards to the index funds and Vinny jumping
anytime, you know, indexes aremade up in different ways. You know,
just over a couple of years ago, and ironically this was in today's
Wall Street Journal. So either Paulgot up early and went to Stewards like
I did, and got the papers. But in the heard on the Street

(51:22):
section, there's an article called theSurprise and index Funds, and it's a
pretty good article on the makeup ofa newdies and passive investing. And you
know, a little over two yearsago, millions of investors owned a stake
in NLG and Biosciences, a moneylosing drug development folks. The guy who

(51:47):
who was the CEO of this companywas a native of Turkey. He was
a murderer and he was a completefraud. But because the market value got
to at least two hundred and fortymillion, indexes like the Russell two thousand
had to put it in the portfolio, and the share price shot up to

(52:07):
seven dollars a share, more thandouble where it was before it had to
be put in there, and itjust obviously was not a good investment and
people were owning stuff. So whenyou look at the Russell two thousand compared
to the SMP small cap six hundred, they're made up differently. And going

(52:29):
back to nineteen ninety four, youknow, the the profitability of the SMP
small cap six hundred was up morethan seven hundred percent more than the Russell
two thousand. That's all I haveto say. Paul brings up a good
point. You need to know whatyou own. Hey, folks, we're
coming up to the end of theshow. You're listening to Let's Talk Money,

(52:53):
brought to you by Bouchef and Andrew, where we help our clients prioritize
their health while we manage their wealthfor life. We're going to back on
tomorrow morning at eight Pinny, Whydon't you help me say goodbye to the
listening audiens because you brought a lotof good information today and I appreciate you
being on the show to help meget through this first show that I've been
on in four months. Please rememberthat different types of investments involve varying degrees

(53:16):
of risk. There can be noassurance that the future performance of any specific
investment, or any non investment relatedcontent made reference to directly or indirectly on
this show will be suitable for yourindividual situation. Moreover, you should not
assume that any information or discussion servesas the receipt of, or as a
substitute for,