January 10, 2026 • 40 mins
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Speaker 1 (00:00):
Hello, and welcome to Money Talks with Terry Sandvold and
Blake Sandvold and Terry. You know, new year, there's probably
new audience members out there that don't know us yet.
Speaker 2 (00:11):
Well, I hope there's always new adding to the list
and new that are listening. So welcome if you're a
loyal listener, and welcome if you're a new listener. And
welcome to twenty twenty six. So we're off and running
literally with what's going on in the world. But for
you that are new to our show, give you a
little bit of background about Sandrald's Financial Group and our
money talk show. Our Money Talk show has been We
(00:35):
started our money talk show approximately twenty four years ago
the time Flies, and we were one of the one
of the first, I think, local financial shows in the
Minneapolis Saint Paul area. There are many shows nationwide, of course,
and now as you probably have picked up about every
(00:57):
other hour, there's a financial show on this station. So
we welcome you. You're loyal listening. We appreciate that a lot.
Our company, Sandboled Financial Group. I started the company back
in nineteen eighty six with one mission, and that was
to help as many people as we can get to
their next financial level. And everybody has a different financial level,
(01:20):
of course, but we want you to step it up
and go to the next higher level. So that's what
we're all about, and we do work in the main
areas of wealth management. Of course, managing your wealth consists
of many different aspects and when you look at it,
it can be a little bit daunting for people to
look at it from a big picture standpoint. So the
wealth management side could be big projects, getting ready for college,
(01:44):
I'm the first home, getting ready for retirement. Working with
your investments up to retirement and through retirement can be
very critical and how you do manage those dollars makes
a big difference in your financial future. So the wealth
management is a very key area that we work in.
Retirement planning is what we probably are known for more
(02:07):
than any one topic as well as wealth management, of course,
but retirement planning. In my very first year in the
business back in nineteen eighty six, of our very first
ten clients, seven of them wanted to prepare for retirement,
so we jumped into that arena right away and it's
been a very strong area for us and for our clients.
(02:28):
So today, with technology it allows people to live longer
and healthier lives. But as a result, preparing financially for
the future has never been more important. So a lot
of people are very concerned, well, my money lasts as
long as I do that type of question, and it's
a very tough question for people to feel confident about.
(02:50):
Our job is to help you feel much more confident
about that. So if you're planning for retirement, and even
if you're in retirement, it may be very important to
have us do what's called a second opinion or a
check in with you to help you find too in
your financial future. And again we're in Minnetaka, we're local,
(03:11):
we've been doing business nationwide for many years, and so
no matter where you may live and where you may
be listening to the show from, whether it's your car
or on the web, we are here to help you.
So in the areas like I mentioned, wealth management, retirement planning,
and a third piece that's important as well is insurance design.
(03:35):
Making sure you have the right type of insurance, the
right amount of insurance, which companies may have the best
products for you, very very important. And we're an independent organization,
so we don't represent one company. We can do the
shopping for you and help you look at what is
best for you for your dollars. So just wanted to
bring up a little bit of that. Our Money Talk
(03:57):
Show is on every Saturday. If you're listening live, you
know it is Saturday at eleven Minnesota time. But one
of the things that we do emphasize you can go
on iHeartRadio and go to News Talk Am eleven thirty
and listen to some of our podcast shows as you
go along as well. But the thing that we're here
to help you with is to give you the right
(04:19):
information to help you make the better decisions for your
financial future. And the Money Talk Show is really to
be informative. It's not to sell you products. There are
some that come across the airwaves to sell you a product.
You need to know your situation first before you recommend
the right things for you. So I think that's very critical.
(04:40):
If you are talking with somebody or you have an advisor,
the question to think about is when was the last
time your advisor proactively reached out to you to help
you with your financial future. So if that's a hard
question to answer, you may not have a financial advisor.
You may have somebody that services your accounts. But there's
(05:02):
much more to it in regards to recommendations, analyzing your situation,
putting together a plan, implementing a plan, following up on
a plan, and making sure that you and your family
are really secure for your financial future.
Speaker 3 (05:18):
So if you're.
Speaker 2 (05:19):
Looking for maybe on your New Year's resolutions this year
for twenty twenty six, it might be I'm going to
take more control of my financial future. I'm going to
give sand Both Financial Group a call and let's get started.
Our number is nine to five two five four four
two eight three seven. If you'd like to contact us,
(05:41):
we would be glad to set up a conversation or
an appointment with you and help you with your financial
future and ideally make twenty twenty six your biggest financial
year ever. So that's what we're all about in a
quick five minutes here.
Speaker 1 (05:57):
Yeah. Well, and an additional in additional, in addition to
you know, setting yourself up and building that great financial
future blake. You know, debt management is kind of a
piece of that, wouldn't you say.
Speaker 3 (06:09):
It's a large piece for a lot of people.
Speaker 4 (06:11):
And you know, I think at this stage of the
economic cycle and where the world's at you know, it's
it's a large question for a lot of people, and
you know, how should we handle debts, how should we
tackle it? Where it interest rates at, where are they going,
et cetera. And it's a big question for a lot
of people. You know, you look at thirty year mortgage
(06:32):
as an example. I mean, how much that has changed
over the last couple of years. And you know, now
we've really got the thirty year mortgage at about a
two year low. So I think it has people question
where where do things go from here? You know, are
there going to be additional opportunities to refinance lower? You know,
hopefully we get additional rate cuts on the horizon. So yeah,
(06:53):
I think these are all really big questions for people
to have at this stage.
Speaker 1 (06:58):
Well that's that's a really good point, Terry. What are
your thoughts about kind of where we are right now?
Speaker 2 (07:03):
Well, I think I think, like Blake has mentioned, with
the interest rates, that's gonna be a big that's gonna
be a big deal this year. How does that, how
does that play out? How many rate cuts may take place,
when when may they take place? And I would assume
that we might see that accelerated a little bit from
May going beyond when there's a new federal chairperson put
(07:23):
into place. But we'll have to watch and see how
that does work. If we can get interest rates down,
I know it's not directly related, but indirectly it can
be related. Mortgage rates may come down a bit, which
could help people with the housing market as well big
project financing. I think that will help people feel more
(07:43):
confident about committing to long term investments or long term debt.
And we'll talk during the show today about good debt
and bad debt, and we can give a lot of
good examples and a lot of bad examples to what
debt is all about as well, Right, Blake, that's right.
Speaker 1 (08:00):
Whenever you say whenever he says that, I always want
to go bad debt bad, want to.
Speaker 2 (08:07):
Have a spoon and hit somebody's hands with that yes
or a ruler or whatever, or their credit card. But
it does remind me years ago, and I likes heard
this story more than he probably wants to. But did
a presentation for an assembly at school at one of
the schools locally, and one of the middle school young
(08:30):
ladies she stood up and she says, mister Sandvill are
credit cards good or evil, And that was in regards
to debt, and I said, well, they can be very
good when you use them, but they could be very
bad when you try to pay them off. And I
know a lot of people have that same attitude looking
at you know, does it make sense to pay down
(08:51):
your mortgage. We'll go into some of those types of scenarios.
But if your performance is doing much better on your investments,
then the interestrate you have to pay on a mortgage,
for example, then there can be good debt involved. So
it's really looking at how you bounce that out. And
that's what that's why it's important to work with the
financial advisor. If you're looking at big purchases, we can
help you analyze what are the better ways to accommodate
(09:13):
those big purchases. Should you use debt, should you not?
Should you take from your investments? What are the tax
obligations dealing with all of that? So those are big
decisions and that's why it's a topic today.
Speaker 1 (09:25):
Absolutely Well, real quick, we need to take a break
here on Money Talks, but we've got enough time to
mention that we've got a Money Talks mailer the week
we do each and every week and if you guys
could let us know what that is and how folks
can get their own.
Speaker 3 (09:37):
Yeah.
Speaker 4 (09:38):
So we've got a great mailer this week entitled Payoff,
Debts or Save, So give a couple of the key
conversation topics that we're going through today, ideas and ways
to conceptualize that. So, if you'd like your copy, give
our office a call at nine to five to two
buy four four two eight three seven, or go online
to Sandbold fg dot com.
Speaker 1 (10:02):
Welcome back to Money Talks with Terry Sandbold and Blake Sandbold,
and today we're talking about debt management. It's a key
part of anybody's finances really, whether you're an individual or
a company. And you know, we've got a great event
coming up, guys, and i'd love for you to share
it with the audience.
Speaker 3 (10:18):
Yeah.
Speaker 4 (10:18):
I was just going to add to that, Kelly. You know,
maybe it's a company, individual or country, but we don't
need to go there right now. You point, good point, no,
But we're very excited. January twenty seventh, we do have
our twenty twenty sixth Market Outlook seminar, So very excited
to be doing that. I'll be leading the presentation for
our team. It'll be at our office at six pm.
(10:41):
You know, we will have some dinner and food provided.
Speaker 3 (10:44):
But very excited. You know, there's so much going on.
Speaker 4 (10:46):
We'll talk about what we saw, what happened in twenty
twenty five, a little bit of context for what we
think could happen this year. You know, where we're at
the economic cycle where we're seeing what type of sectors
we're seeing opportunities in this year, and you know, I
think this is a year where there's gonna be a
lot of rotation, a lot of change happening in the
economy and in the marketplace. So it's going to be
(11:07):
a lot of information we're going to get through. And
we always close it out with the Q and A,
so it's a lot of fun. Seats are limited, so
if you are interested in attending, give our off as
a call nine to five two five four four two
A three seven or online at sandvild fg dot com.
Speaker 1 (11:25):
And I would say too, we do the market updates
periodically Terry here on the show, but it is so
much fun to do it live, especially when you go
with a bunch of other consumers and everybody gets a
chance to ask their questions because you know you're all
thinking about the same things. It's just it's a great,
great energetic presentation. Highly recommend.
Speaker 2 (11:42):
Yeah, I think that's that's kind of the most one
of the most interesting parts of that is because we
want to make sure that people get their questions answered
and well. Coming into a live presentation like that, I
think is very key for a lot of people. And
then what we do afterwards is stay around for individual
questions if it's more personalized questions using their own data
(12:03):
of course, so people do tend to line up kind
of single file, and our advisors are spread throughout the
room and they pretty much walk up to them and
ask them the questions if it's something that they want
a key answer on regarding their own personal stuff. So
really cool. I think that's really helpful for a lot
of people. They can walk away because they sometimes they
(12:24):
just try to do that research on their own, and
is it really the right research for them? Is the
key thing? So they may have part of the answer correct,
but they might not know all the details and all
the things to think about. So I think that's real critical.
So yeah, we look forward to our seminars throughout the
year of various topics and also on our show. As
(12:45):
you know, we try to fulfill our show with a
lot of different topics, a lot of different things to
talk about. There's a few things going on in the world,
so I don't think we have a shortage of topics
with this. Yeah, So it's just a matter of can
we talk about all of them? You know, that type
of thing. But we're talking about debt management today. According
(13:06):
to the latest data from the Federal Reserve and Experience,
the average American holds about one hundred and five thousand,
seven hundred dollars in total debt including mortgages, auto loans,
student loans, and credit cards. Then that I think is
probably a low number you when you think about that
and there's an average. We have a chart that talks
(13:26):
about average total consumer debt by generation and I find
this interesting. In twenty twenty four, Generation Z, which is
eighteen to twenty eight year olds. In twenty twenty four,
that debt was thirty one thousand and eight fifty eight.
In twenty twenty five, it went up by seven point
eight percent to thirty four thousand and three. Twenty eight.
(13:48):
Millennials age twenty nine to forty four is the category
in twenty twenty four, that debt balance was one hundred
thirty thousand. It just went up slightly to one hundred
thirty two thousand and two eighty according to this report,
which is one point six percent. Generation X, which is
(14:09):
forty five to sixty year olds, that balance was one
hundred and fifty nine thousand and three ninety. It actually
stayed pretty flat, went down just a little bit to
one fifty eight one oh five, which I find that
a little bit surprising on the chart that it would
actually stay flat Baby boomers as far as their debt,
(14:30):
and that's sixty one to seventy nine year olds at
about ninety four thousand and five sixty one. And why
that number drops down is sometimes ideally for a lot
of people, especially in the past, it used to be
I want to have my mortgage paid off when I retire.
So it took a big number off the board, and
that went down by two percent for twenty twenty five.
(14:54):
And then they have another category it's called the Silent generation,
and I don't know if we've mentioned this before. That's
age eighty and above and that's ever growing though, but
there's still debt in that category on average in twenty
twenty four thirty eight thousand and eight ninety three, and
in twenty twenty five thirty eight thousand and four sixty. Now,
(15:17):
one thing that may totally affect that will be healthcare
issues in the future that may not be paid by
health insurance, So that could be a debt issue that
could be increasing as well. But I kind of look
at these numbers and say these all sound a little
bit low just in general, because everybody knows the price
(15:40):
of a home today versus the price of a home
ten or twenty years ago is a whole different story.
And the same thing with automobiles, for example. Used to
be able to get a nice car for thirty thousand
dollars in less and have a full array of a
showroom to look at. Now you might get pointed to
one or two cards in the corner and say, yeah,
(16:01):
you can get into that one for about thirty and
then all the rest of them are fifty and above.
You know that type of thing. So a lot of
things to look at there. But the thing that people
need to do is look at debt as a negative return.
A lot of times we talk about investments and how
we want to maximize your net return. But if you
(16:21):
are on the other side, not watching how you're managing
your debt. A lot of people know that credit card
interest rates are through the roof still, and you know,
you could be making ten percent fifteen percent on your investments,
but if you look at your credit card charges, they
could be at fifteen twenty. I mean I saw sometimes
(16:46):
you get these things in the mail that will offer
free interest or no interest for six months, and then
you need to flip over that page to the less
paragraph and it says after that it goes to twenty
seven point two or whatever, puty one point one. So
there's a lot more to it. So people need to
be aware of a negative return versus a positive return.
(17:07):
So like, do you want to cover a little bit
about good debt versus bad debt? I'll jump in as well.
Speaker 4 (17:12):
Yeah, you know one additional stat that I just pulled
here real quick, Terry. You know, looking at the average
payments for new and used cars right now, so currently
the you know you think about this from a debt standpoint,
the average payment for a new car as it stands
right now is about seven hundred and fifty dollars a
month nationally, and about five hundred and thirty for a
(17:35):
used car.
Speaker 3 (17:36):
So you think about.
Speaker 4 (17:37):
That, it's I mean, it doesn't feel that long ago
where where you'd see a lot of the you know,
one hundred ninety nine two hundred dollars and it would
be the premium ones at this and you know, I
think it shows kind of where things are at and
a lot of the debt that people are taking on
right now, you know, on the auto sector definitely is
still a concern for where people do that So leads
(17:58):
right in exactly to good debt for is bad debts
and where to.
Speaker 3 (18:01):
Have types of debt.
Speaker 4 (18:03):
So you know, if you think about good debts, think
about it as really what are types of debt that
you can take on that can help you build long
term wealth. You know, something could be like a mortgage,
student loan if it's reasonable.
Speaker 3 (18:18):
You know, ken is an investment on.
Speaker 4 (18:19):
Yourself business loans where maybe that's helping you stop start
a company, buy a company, buy out a company, et cetera.
It really can help again with long term wealth or income.
So those you know, oftentimes can have lower interest rates
in the scheme of things with potential benefits. So you know,
(18:39):
you think about a mortgage helping you buy a home,
do need to live somewhere, And you know you do
have a portion of the interest on that that is deductible,
so that that does help if you're itemizing student loans again,
really investing in your education and long term earning potential.
So that's something where I think a lot have debated,
(19:02):
especially with the cost of education right now, do you
still get the return on that or not? And you know,
I think in part it depends on what type of.
Speaker 3 (19:10):
Field you're going to go into.
Speaker 4 (19:11):
And that's a key figure is is this end field
is it? Does it have an earning potential to pay
off you know, one hundred two hundred thousand dollars in
student loans.
Speaker 3 (19:22):
Yeah, that's the question I have.
Speaker 1 (19:24):
Just because it's in the catalog at college doesn't mean
you can make a living doing it.
Speaker 4 (19:28):
Right, Look, I love learning, but you know there there
is a financial aspect to consider on a lot of
it too. You know, business loans again, it can be
a great, great way to look at expanding and you
know that's a key thing on on economic side that
we're looking at this year. And you know, if FED
(19:48):
funds rates do continue to come down, usually that's a
direct impact on a lot of business loans because a
lot of those for small businesses are marked the FED
funds rate plus a premium. So hopefully as that continues
to come down, small mid sized businesses may have easier
access to capital.
Speaker 3 (20:07):
You know, that's the hope of some of that.
Speaker 1 (20:09):
Right now, absolutely, well, we need to take a quick
break here for some news on money talks with Blake Sandbold.
Terry Sandbold and we will be right back. You're listening
to money Talks with Terry Sandbold and Blake Sandbold, and
today we're talking about debt management and Terry is a
(20:31):
critical piece of this whole financial picture in future.
Speaker 2 (20:35):
Oh absolutely, And before the break we talked about good
debt and talked a little bit about that, and it
can be business loans can be good debt. The mortgages
at good interest rates can definitely be good debt as well.
While your money and other dollars are working for your growth,
for your future, there are some bad death types of scenarios,
of course, which there are many examples of that. But
(20:57):
that could be high interest debts, credit cards or payday loans,
and some of those things can become overwhelming. I do
remember one time a person contacted us and said, I
really need to talk to you guys. I've been listening
to your show for many years and I'm probably way
overdue trying to reach out to you guys. But I
really have a debt issue. And I says, okay, tell
(21:20):
me a little bit about that. Well, I do have
credit card balances of over one hundred thousand dollars. And
I said, oh, okay. Not everybody comes across with that
type of comment.
Speaker 1 (21:33):
Were you sitting down?
Speaker 2 (21:35):
I was sitting down and the person was sitting down
when they said that, actually, which was interesting too because
they did walk in for an employment to talk about it.
I said, I've really never talked to anybody else about this.
And I said that's a pretty big burden to deal with,
isn't it? And he said absolutely. So. I mean we
went through a lot of different things and said, okay,
(21:57):
we need to look at the big picture. Let's balance
this out. What are plus is? What are the minuses
on your balance sheet here? And let's get a game
plan in motion. So the person felt confident enough to
reach out to us in that situation. It's too bad
that they waited as long as they did. But in
(22:17):
that case, at least bringing it up and at least
starting to talk about was the first step. So we
don't want you to be in that situation and hold
it within yourself and not bring it up with the
right people and the right advisors and the right consulting
groups to help you with that, because it can be
overwhelming from a health standpoint as well as from a
wealth standpoint, So people need to be aware of that
(22:39):
as well. But I interest credit cards, a lot of
are over twenty percent still and that constrain finances and
impact credit scores, personal loans for non essential items, you know,
different things we've had in the past. If somebody does
call and reach out to us and has a big purchase,
(23:02):
our clients feel comfortable and confident to give us a
call and say, here's what I'm looking at doing. What
is the best and most cost effective way to finance
this if I do need to finance it versus taking
money out of my investments. So we'll go through that
in detail with people. It could be a car like
Blake was mentioned earlier. The cost of a car is
(23:22):
you know, a lot of our fifty two hundred thousand
dollars to buy a car now and it could have
been what a small house would have been thirty forty
years ago, you know that type of thing. So kind
of looking at things there. Auto loans on luxury are
rapidly depreciating vehicles, you know, and as far as putting
(23:43):
a big amount down if you're not planning to keep
that auto for a long period of time, we really
need to help you look at all those different scenarios there.
There's a lot of commercials on TV about payday loans
and those can have extremely high interest in short repayment periods,
and they're really high risk for a lot of people.
So that hopefully is not something you're looking at, but
(24:07):
that those can be examples of bad debt when you
think about it. So should you stop investing to pay
down debt? This is one of the most common financial
questions we hear. Should I stop investing to pay off
my debt? And really there needs to be a bit
of a balance there. Stopping or reducing investment contributions can
free up cash to pay debt faster, but doing so
(24:30):
may slow your long term financial growth. So you really
need to look at the pluses on your investment side
versus the minuses on the negative on the debt side.
And some things that you might want to consider is
what are your long term goals. Cutting back on investments
can interrupt compounding growth. Employer sponsored retirement plans. If your
employer matches four O one K contributions, try to contribute
(24:54):
at least enough to get the full match, because keep
in mind that's always free money from your employer. And
then also reevaluate your investments if you're already trimmed. If
you've already trimmed other expenses and still feel financial strained,
consider whether temporarily redirecting some money towards high interest debt
aligns with your long term plans. And you know, the
(25:19):
thing that we do emphasize is communicating openly with your
advisor is really beneficial because it's it's kind of like,
we need to know what's good on your balance sheet,
but we also need to know what may be a
negative or bad on your balance sheet. Because we're looking
at a holistic plan for you. You can't just take
the eraser and erase all the bad debt. It doesn't
(25:40):
work out quite that easily.
Speaker 4 (25:42):
Yeah, well, I think you know one additional thing that
needs to be looked at, depending on how much debt
you have is you know what is the actual overall
risk profile of your investments, and you know there may
be a discussion spot for saying some of that should change.
You know, as an example, if you've if you've got
some of the high high debt out there and.
Speaker 3 (26:02):
You know your job could be shaky, you know what
you need.
Speaker 4 (26:06):
To make sure you're prepared in a buffer if you
did lose anything on that to not go into even
a worse debt spiral. So essentially, if you look at
the more debt you take on, the financial risk capacity
that you have decreases, which you may not necessarily think
of because you might view, well, my risk tolerance, how
much I feel I can take on hasn't necessarily emotionally changed,
(26:31):
but financially there actually could be an impact of saying
that you need to change how your.
Speaker 3 (26:36):
Portfolio is actually structured.
Speaker 4 (26:37):
So it all comes back to what Terry said on
that communicating with your advisor for where I'm at, why
I'm at the spot, what is a plan to get.
Speaker 3 (26:45):
Get out and through this is important?
Speaker 2 (26:50):
Yeah, So one thing, excuse me, one thing that's always
important too is evaluate that debt also as you're going forward,
meaning listing each balance not the interest rate plus or minus,
and record monthly your payments and then design a payoff
approach to all of that. And there are many different ways.
(27:10):
There's different methods out there as well. One is called
the avalanche method. It's pay off the highest interest debt
first that otherwise, there's another method called the snowball method,
and that's paying off the smallest balance first for quicker
wins and motivation, so you got less accounts on the board,
(27:33):
you know. So it's really looking at what makes sense
for you. But that's where the nelsis comes in. That's
why working with an advisor can make sense because the
thing that a lot of people don't have is enough
time to sit and go through their financial futures. And
if you're looking at that at ten o'clock or ten
thirty at night, when everybody's winding down for the day
and you're trying to make those types of decisions, you're
(27:55):
probably going to be a little bit flustered on trying
to figure it out, and you're probably not going to
get a good night's sleep that night, you know. So
it's really going to be important to work with somebody
that can help you during prime time, so to speak,
look at the financial at your financial future, because it's
hard to balance it all for an individual or for
a family. And that's why we are. We are in
(28:16):
the business of doing what we do. We have the
time that you may not have.
Speaker 1 (28:20):
You know, I do want to ask a question, and
I kind of am going to direct this a little
more at Blake, but whoever wants to take it, you know,
speaking of unused subscriptions or some of the things that
we might want to evaluate if we're really trying to
get lean with our with our debt. You know, there's
all these apps out there now that say, oh, well,
we'll help you cancel your subscriptions and all that kind
(28:40):
of stuff, which you know sounds appealing because who wants
to do it? But I mean, don't they get kind
of a foothold into your financial picture that maybe it's
a little too spy like for for for comfort. I
don't know, Blake, I just wanted to know what your
thoughts were.
Speaker 4 (28:56):
Yeah, there is an opening to that, and you know,
I think a natural one to look at is you know,
if you've got Apple products, you know they actually have
some internal stuff where it can help you cancel different
subscriptions as well. That that's probably I mean, it's already
integrated through that system. So I think ones like that
are you know, a little easier, more tangible for people.
(29:17):
But you know, I think it is for a lot
of people. It is as simple as looking at the
monthly bank statements. You know, I actually pull that out
and say what what are happening every subscription on this,
and you know.
Speaker 3 (29:28):
You think about it.
Speaker 4 (29:30):
I mean, a lot of those subscriptions that started at
seven dollars a couple of years ago are in the
twenties per month, and you know that's that's not uncommon.
If you've got five ten of them, it starts to
add up. So I think that is important to look at.
I mean, I think I do know some of the
softwares out there. There are a number that I have
seen people use that are are good enticing. You know,
(29:53):
I'd probably want to pull in a cyber contact maybe
at some point to talk a little bit about some
of those. But yeah, I think it's a huge part
for people to look at, and you know, they have
such a great appeal by saying, well, it's the slow
monthly payments, but make sure you're actually using it, and
I mean most of them. We can walk away and
go back to if you need to down the road too.
Speaker 3 (30:14):
All helps.
Speaker 1 (30:15):
We need to take a break here, But Terry and
Blake please let everybody know what we've got for our
Money Talks Mailer of the week and how to get one.
Speaker 4 (30:22):
Yeah, we've got a mailer entitled Payoff, Debt or Save.
So it goes through a number of the topics that
we have today, reasons to do each and considerations to make.
So if you'd like your copy, give us a call
at nine to five to two five four four two
eight three seven, or go online to sandboldfg dot com.
Speaker 1 (30:44):
It's Money Talks with Terry Sambled and Blake Sambled and
we've been talking this hour about debt management and good debt,
bad debt and all things. But Blake, you've got a
great event coming up that's got something for everyone.
Speaker 4 (30:57):
We do so January twenty seventh, we've got our twenty
twenty six Market Outlook seminar, So that'll be at our
office at six pm, the in person live. We're very
excited about it and going through a lot of different topics,
you know, ranging from what happened in twenty twenty five,
What led to some of the leadership, What were some
of our calls that we made last year?
Speaker 3 (31:20):
What are we thinking could actually happen this year?
Speaker 4 (31:22):
And you know there's there's a lot on the horizon,
tariff implications, you know, we've got interest rates, policy decisions
changing the FED, mid term elections, you name it, underlying
solid actually economy, and a lot of other geopolitical noise
that's happening. So we're going to tackle and try to
(31:44):
give a lot of thoughts on that and you know,
give some true sectors that we are actually looking at
right now. And you know, this is I think, from
a market standpoint, can be a very different year. I
think from an economy standpoint, it's a different stage the
economic cycle. So it's it's gonna be a a lot
of great information to go through. We're very excited about it.
So seating is limited. If you'd like to tend, give
(32:06):
our office a call at nine to five to two
five four four two eight three seven, or go online
to sandfld FG dot com.
Speaker 1 (32:14):
Perfect. So are you willing to tell me what stage
do you think the economy is in? Or do I
have to wait till the twenty seventh.
Speaker 4 (32:20):
Well, I'll give a little precursor on it. So, you know,
I do think for a lot of the sectors that
we're looking at as rallying right now are actually a
lot of early stage sectors. So it's kind of interesting.
You know, there's so much discussion I think going on.
You know, a recession is imminent or you know, we've
(32:40):
heard that for the last two three years, right and
we're right on the brink of that, and that's really
not what we're seeing at this stage. You know, you're
starting to see small cap companies rally. You're starting to
see transportation companies, industrials, banks.
Speaker 3 (32:55):
Et cetera.
Speaker 4 (32:56):
Those usually are not late stage areas at rally. They're
usually when the economy is accelerating or could pick up
steam in different areas. So you think about kind of
the general context wherein you know, the consumer spending numbers
are still decent right now. You know, will need to
be cognizant of where some of that can go. But
(33:21):
you know, the general theme is really that there should
be additional spending on manufacturing, and if some of this
AI stuff is real, there should be margin expansion in
companies where productivity should grow. You think about productivity growth,
it's really deflationary in general, so you could see a
period of actually having wage growth above inflation for a
(33:44):
period of time. So I think you look at that
the next year or two years. There is actually a
decent case for you know, a strong economic environment. But
you know, it does mean that there's gonna be different
areas in the market to look at.
Speaker 3 (33:58):
You know, valuations have changed.
Speaker 4 (34:01):
You know, I think it's going to be a year
to not necessarily get cozy and exactly what had worked
for the last five ten years. So having some rotation
and there's going to be really important. That's what we've
been talking our clients about. So yeah, I think, you know,
all that to be said, there's still may be some
choppiness this year in the market. You know, we've been
(34:21):
talking a lot about that, but I think point to
point it will be decent and we've just got to
follow where the business cycle is going, which it looks
in a good spot right now.
Speaker 1 (34:31):
That's cool.
Speaker 2 (34:33):
So it does go along with the proactive money management
that we always talk about versus just a reactive money
management and looking at what are going to be the
opportunities going forward and that's why we think it is
important to work with the financial advisor group like ours
that looks at that in that fashion, because you could
put your investments across the board and do okay. But
(34:55):
like Blake mentioned, when we build our models and we
look at based on risk, the different models we put
together and then actively manage them, we're looking for the
opportunities as they come forward. So I think that's really critical.
If you're not getting the attention that you deserve, this
might be a great opportunity to have that second opinion.
(35:15):
And we are out here to help you and better
your financial future. But a lot of things to keep
in mind. And I think one of the hardest things
for a lot of people is having enough time to
do this all by themselves. I can't say that enough
because a lot of people tend to say, well, I
had a busy day, I'll look at it tomorrow, and
then I'll look at it next week, and then all
(35:36):
of a sudden, one quarter's gone, and oh, I didn't
look at my investments this first quarter. I guess I
should have, and then all of a sudden things do change.
So that can make a difference on your portfolio return.
So it's really important to have a team to work
with you, just like it is important to have an
attorney firm to help you with wills and trusts and
documents like that, and then a CPA. And if you
(35:59):
have a complex tax return, that's not the right time
to try to do self study on your tax return.
So I think it's very critical to look at that
have a team to surround you in all those areas,
and we can be one of the team members. We'd
like to offer the opportunity to meet with us to
go through that and show you how we can earn
(36:19):
your business. But today we're talking about debt. Yep, go ahead.
Speaker 1 (36:24):
Well we are well and you know, Terry, in addition
to not having time to do it all by yourself,
we have heard forever from people, Oh I wish I
would have come in sooner, And it's like, don't deprive
yourself of the professional advice for a long time, because
you could be depriving yourself of progress, right, Terry.
Speaker 2 (36:42):
Yeah. And the one thing that I always talk to
people about when I talk about their investments, they said,
our job is to raise your net return, which is
the money you get to keep, and that's the bottom line.
So if we can help you do that, you are winning,
and that's what it's all about. So we'd like to
offer our abilities and show you what we can do
(37:04):
to help you in that arena. And we have helped
thousands and we are helping thousands nationwide with that, and
we would like to help you too. So if you've
been listening to the show for many weeks or months
or years, take the next step, give us a call.
We'd be glad to talk and be with you and
(37:26):
have it on your New Year's resolutions. I want to
make twenty twenty six my best financial year ever, and
I want a team that can help me do that.
So we are here to help, and that's why we
do the show. We want to make sure that we're
reaching out to as many people as we can, helping
them with the right information to make the right decisions.
So again today we're talking about debt, which is an
(37:47):
important piece to look at as well. And debt management
isn't really about eliminating all debt. It's about balance and
consistently making small, smart choices builds financial confidence and stability
over time. So a very important topic nobody likes to
talk about budgets and debt and the negative side of
(38:12):
the world. But again, there is good debt and there
is bad debt. So again we want to help you
make the most of your financial future.
Speaker 3 (38:24):
Yeah.
Speaker 4 (38:24):
I think that's that's a key part is you know,
get in, get the analysis, and you know, it's the
realization that everyone's individual situation is different. And you know,
I think there's a key part is there's there's no
time like the present to look through all of this.
You know, if if there are is is debt outstanding,
it's it's important to know what options that you have
(38:45):
and you know, whether that be you know, if it's
a lot of high high credit interest uh, you know,
there there could be a case where you say, well
maybe there's a home equity line or something like that
to try to refinance into lower debts uh and make
things more attainable.
Speaker 3 (39:00):
So there's there always can be options out there.
Speaker 4 (39:04):
And you know, it's just uh, just important to know
what they are and what that strategy ends up being.
Speaker 1 (39:10):
Absolutely.
Speaker 3 (39:11):
Yeah.
Speaker 2 (39:12):
I was just going to say, when you when you
have on your credit cards, if you have a credit
card max limit, that does not mean you have to
ring that ring that bell for it's not a suggestion,
so Kelly, don't go for that number. It's supposed to
be much much less than that number.
Speaker 1 (39:29):
So anyway, we've got just about a minute left and Terry,
you know, I think you know, like we said a
moment ago, it's New Year's you know, we make resolutions,
but you know, do something for yourself and you'll do
a no cost, no obligation review or second opinion, and
it's just it's just take those steps, right. How do
people do that?
Speaker 2 (39:50):
Absolutely? Yeah, when you're sitting down and looking at what
should I do next? One way that you can reach
out and we can help you reach out with to
better your financial future. Give us a call at Sandwold
Financial Group. Our number is nine five two five four
four two eight three seven. Again that's nine five two
five four four two eight three seven. Or request a
(40:14):
conversation or meeting online at SANDVOLDFG dot com.
Speaker 1 (40:19):
And you know what else you can do Blake at
SAANDVILDFG dot com. Or that phone number is sign up
for the event real quick.
Speaker 4 (40:25):
Yeah, January twenty seventh, that's six pm. We've got our
twenty twenty six market outlook, so absolutely go online or
call us nine, five, two five, four four two eight
three seven and samdvoldfg dot com
Hello, and welcome to Money Talks with Terry Sandvold and
Blake Sandvold and Terry. You know, new year, there's probably
new audience members out there that don't know us yet.
Speaker 2 (00:11):
Well, I hope there's always new adding to the list
and new that are listening. So welcome if you're a
loyal listener, and welcome if you're a new listener. And
welcome to twenty twenty six. So we're off and running
literally with what's going on in the world. But for
you that are new to our show, give you a
little bit of background about Sandrald's Financial Group and our
money talk show. Our Money Talk show has been We
(00:35):
started our money talk show approximately twenty four years ago
the time Flies, and we were one of the one
of the first, I think, local financial shows in the
Minneapolis Saint Paul area. There are many shows nationwide, of course,
and now as you probably have picked up about every
(00:57):
other hour, there's a financial show on this station. So
we welcome you. You're loyal listening. We appreciate that a lot.
Our company, Sandboled Financial Group. I started the company back
in nineteen eighty six with one mission, and that was
to help as many people as we can get to
their next financial level. And everybody has a different financial level,
(01:20):
of course, but we want you to step it up
and go to the next higher level. So that's what
we're all about, and we do work in the main
areas of wealth management. Of course, managing your wealth consists
of many different aspects and when you look at it,
it can be a little bit daunting for people to
look at it from a big picture standpoint. So the
wealth management side could be big projects, getting ready for college,
(01:44):
I'm the first home, getting ready for retirement. Working with
your investments up to retirement and through retirement can be
very critical and how you do manage those dollars makes
a big difference in your financial future. So the wealth
management is a very key area that we work in.
Retirement planning is what we probably are known for more
(02:07):
than any one topic as well as wealth management, of course,
but retirement planning. In my very first year in the
business back in nineteen eighty six, of our very first
ten clients, seven of them wanted to prepare for retirement,
so we jumped into that arena right away and it's
been a very strong area for us and for our clients.
(02:28):
So today, with technology it allows people to live longer
and healthier lives. But as a result, preparing financially for
the future has never been more important. So a lot
of people are very concerned, well, my money lasts as
long as I do that type of question, and it's
a very tough question for people to feel confident about.
(02:50):
Our job is to help you feel much more confident
about that. So if you're planning for retirement, and even
if you're in retirement, it may be very important to
have us do what's called a second opinion or a
check in with you to help you find too in
your financial future. And again we're in Minnetaka, we're local,
(03:11):
we've been doing business nationwide for many years, and so
no matter where you may live and where you may
be listening to the show from, whether it's your car
or on the web, we are here to help you.
So in the areas like I mentioned, wealth management, retirement planning,
and a third piece that's important as well is insurance design.
(03:35):
Making sure you have the right type of insurance, the
right amount of insurance, which companies may have the best
products for you, very very important. And we're an independent organization,
so we don't represent one company. We can do the
shopping for you and help you look at what is
best for you for your dollars. So just wanted to
bring up a little bit of that. Our Money Talk
(03:57):
Show is on every Saturday. If you're listening live, you
know it is Saturday at eleven Minnesota time. But one
of the things that we do emphasize you can go
on iHeartRadio and go to News Talk Am eleven thirty
and listen to some of our podcast shows as you
go along as well. But the thing that we're here
to help you with is to give you the right
(04:19):
information to help you make the better decisions for your
financial future. And the Money Talk Show is really to
be informative. It's not to sell you products. There are
some that come across the airwaves to sell you a product.
You need to know your situation first before you recommend
the right things for you. So I think that's very critical.
(04:40):
If you are talking with somebody or you have an advisor,
the question to think about is when was the last
time your advisor proactively reached out to you to help
you with your financial future. So if that's a hard
question to answer, you may not have a financial advisor.
You may have somebody that services your accounts. But there's
(05:02):
much more to it in regards to recommendations, analyzing your situation,
putting together a plan, implementing a plan, following up on
a plan, and making sure that you and your family
are really secure for your financial future.
Speaker 3 (05:18):
So if you're.
Speaker 2 (05:19):
Looking for maybe on your New Year's resolutions this year
for twenty twenty six, it might be I'm going to
take more control of my financial future. I'm going to
give sand Both Financial Group a call and let's get started.
Our number is nine to five two five four four
two eight three seven. If you'd like to contact us,
(05:41):
we would be glad to set up a conversation or
an appointment with you and help you with your financial
future and ideally make twenty twenty six your biggest financial
year ever. So that's what we're all about in a
quick five minutes here.
Speaker 1 (05:57):
Yeah. Well, and an additional in additional, in addition to
you know, setting yourself up and building that great financial
future blake. You know, debt management is kind of a
piece of that, wouldn't you say.
Speaker 3 (06:09):
It's a large piece for a lot of people.
Speaker 4 (06:11):
And you know, I think at this stage of the
economic cycle and where the world's at you know, it's
it's a large question for a lot of people, and
you know, how should we handle debts, how should we
tackle it? Where it interest rates at, where are they going,
et cetera. And it's a big question for a lot
of people. You know, you look at thirty year mortgage
(06:32):
as an example. I mean, how much that has changed
over the last couple of years. And you know, now
we've really got the thirty year mortgage at about a
two year low. So I think it has people question
where where do things go from here? You know, are
there going to be additional opportunities to refinance lower? You know,
hopefully we get additional rate cuts on the horizon. So yeah,
(06:53):
I think these are all really big questions for people
to have at this stage.
Speaker 1 (06:58):
Well that's that's a really good point, Terry. What are
your thoughts about kind of where we are right now?
Speaker 2 (07:03):
Well, I think I think, like Blake has mentioned, with
the interest rates, that's gonna be a big that's gonna
be a big deal this year. How does that, how
does that play out? How many rate cuts may take place,
when when may they take place? And I would assume
that we might see that accelerated a little bit from
May going beyond when there's a new federal chairperson put
(07:23):
into place. But we'll have to watch and see how
that does work. If we can get interest rates down,
I know it's not directly related, but indirectly it can
be related. Mortgage rates may come down a bit, which
could help people with the housing market as well big
project financing. I think that will help people feel more
(07:43):
confident about committing to long term investments or long term debt.
And we'll talk during the show today about good debt
and bad debt, and we can give a lot of
good examples and a lot of bad examples to what
debt is all about as well, Right, Blake, that's right.
Speaker 1 (08:00):
Whenever you say whenever he says that, I always want
to go bad debt bad, want to.
Speaker 2 (08:07):
Have a spoon and hit somebody's hands with that yes
or a ruler or whatever, or their credit card. But
it does remind me years ago, and I likes heard
this story more than he probably wants to. But did
a presentation for an assembly at school at one of
the schools locally, and one of the middle school young
(08:30):
ladies she stood up and she says, mister Sandvill are
credit cards good or evil, And that was in regards
to debt, and I said, well, they can be very
good when you use them, but they could be very
bad when you try to pay them off. And I
know a lot of people have that same attitude looking
at you know, does it make sense to pay down
(08:51):
your mortgage. We'll go into some of those types of scenarios.
But if your performance is doing much better on your investments,
then the interestrate you have to pay on a mortgage,
for example, then there can be good debt involved. So
it's really looking at how you bounce that out. And
that's what that's why it's important to work with the
financial advisor. If you're looking at big purchases, we can
help you analyze what are the better ways to accommodate
(09:13):
those big purchases. Should you use debt, should you not?
Should you take from your investments? What are the tax
obligations dealing with all of that? So those are big
decisions and that's why it's a topic today.
Speaker 1 (09:25):
Absolutely Well, real quick, we need to take a break
here on Money Talks, but we've got enough time to
mention that we've got a Money Talks mailer the week
we do each and every week and if you guys
could let us know what that is and how folks
can get their own.
Speaker 3 (09:37):
Yeah.
Speaker 4 (09:38):
So we've got a great mailer this week entitled Payoff,
Debts or Save, So give a couple of the key
conversation topics that we're going through today, ideas and ways
to conceptualize that. So, if you'd like your copy, give
our office a call at nine to five to two
buy four four two eight three seven, or go online
to Sandbold fg dot com.
Speaker 1 (10:02):
Welcome back to Money Talks with Terry Sandbold and Blake Sandbold,
and today we're talking about debt management. It's a key
part of anybody's finances really, whether you're an individual or
a company. And you know, we've got a great event
coming up, guys, and i'd love for you to share
it with the audience.
Speaker 3 (10:18):
Yeah.
Speaker 4 (10:18):
I was just going to add to that, Kelly. You know,
maybe it's a company, individual or country, but we don't
need to go there right now. You point, good point, no,
But we're very excited. January twenty seventh, we do have
our twenty twenty sixth Market Outlook seminar, So very excited
to be doing that. I'll be leading the presentation for
our team. It'll be at our office at six pm.
(10:41):
You know, we will have some dinner and food provided.
Speaker 3 (10:44):
But very excited. You know, there's so much going on.
Speaker 4 (10:46):
We'll talk about what we saw, what happened in twenty
twenty five, a little bit of context for what we
think could happen this year. You know, where we're at
the economic cycle where we're seeing what type of sectors
we're seeing opportunities in this year, and you know, I
think this is a year where there's gonna be a
lot of rotation, a lot of change happening in the
economy and in the marketplace. So it's going to be
(11:07):
a lot of information we're going to get through. And
we always close it out with the Q and A,
so it's a lot of fun. Seats are limited, so
if you are interested in attending, give our off as
a call nine to five two five four four two
A three seven or online at sandvild fg dot com.
Speaker 1 (11:25):
And I would say too, we do the market updates
periodically Terry here on the show, but it is so
much fun to do it live, especially when you go
with a bunch of other consumers and everybody gets a
chance to ask their questions because you know you're all
thinking about the same things. It's just it's a great,
great energetic presentation. Highly recommend.
Speaker 2 (11:42):
Yeah, I think that's that's kind of the most one
of the most interesting parts of that is because we
want to make sure that people get their questions answered
and well. Coming into a live presentation like that, I
think is very key for a lot of people. And
then what we do afterwards is stay around for individual
questions if it's more personalized questions using their own data
(12:03):
of course, so people do tend to line up kind
of single file, and our advisors are spread throughout the
room and they pretty much walk up to them and
ask them the questions if it's something that they want
a key answer on regarding their own personal stuff. So
really cool. I think that's really helpful for a lot
of people. They can walk away because they sometimes they
(12:24):
just try to do that research on their own, and
is it really the right research for them? Is the
key thing? So they may have part of the answer correct,
but they might not know all the details and all
the things to think about. So I think that's real critical.
So yeah, we look forward to our seminars throughout the
year of various topics and also on our show. As
(12:45):
you know, we try to fulfill our show with a
lot of different topics, a lot of different things to
talk about. There's a few things going on in the world,
so I don't think we have a shortage of topics
with this. Yeah, So it's just a matter of can
we talk about all of them? You know, that type
of thing. But we're talking about debt management today. According
(13:06):
to the latest data from the Federal Reserve and Experience,
the average American holds about one hundred and five thousand,
seven hundred dollars in total debt including mortgages, auto loans,
student loans, and credit cards. Then that I think is
probably a low number you when you think about that
and there's an average. We have a chart that talks
(13:26):
about average total consumer debt by generation and I find
this interesting. In twenty twenty four, Generation Z, which is
eighteen to twenty eight year olds. In twenty twenty four,
that debt was thirty one thousand and eight fifty eight.
In twenty twenty five, it went up by seven point
eight percent to thirty four thousand and three. Twenty eight.
(13:48):
Millennials age twenty nine to forty four is the category
in twenty twenty four, that debt balance was one hundred
thirty thousand. It just went up slightly to one hundred
thirty two thousand and two eighty according to this report,
which is one point six percent. Generation X, which is
(14:09):
forty five to sixty year olds, that balance was one
hundred and fifty nine thousand and three ninety. It actually
stayed pretty flat, went down just a little bit to
one fifty eight one oh five, which I find that
a little bit surprising on the chart that it would
actually stay flat Baby boomers as far as their debt,
(14:30):
and that's sixty one to seventy nine year olds at
about ninety four thousand and five sixty one. And why
that number drops down is sometimes ideally for a lot
of people, especially in the past, it used to be
I want to have my mortgage paid off when I retire.
So it took a big number off the board, and
that went down by two percent for twenty twenty five.
(14:54):
And then they have another category it's called the Silent generation,
and I don't know if we've mentioned this before. That's
age eighty and above and that's ever growing though, but
there's still debt in that category on average in twenty
twenty four thirty eight thousand and eight ninety three, and
in twenty twenty five thirty eight thousand and four sixty. Now,
(15:17):
one thing that may totally affect that will be healthcare
issues in the future that may not be paid by
health insurance, So that could be a debt issue that
could be increasing as well. But I kind of look
at these numbers and say these all sound a little
bit low just in general, because everybody knows the price
(15:40):
of a home today versus the price of a home
ten or twenty years ago is a whole different story.
And the same thing with automobiles, for example. Used to
be able to get a nice car for thirty thousand
dollars in less and have a full array of a
showroom to look at. Now you might get pointed to
one or two cards in the corner and say, yeah,
(16:01):
you can get into that one for about thirty and
then all the rest of them are fifty and above.
You know that type of thing. So a lot of
things to look at there. But the thing that people
need to do is look at debt as a negative return.
A lot of times we talk about investments and how
we want to maximize your net return. But if you
(16:21):
are on the other side, not watching how you're managing
your debt. A lot of people know that credit card
interest rates are through the roof still, and you know,
you could be making ten percent fifteen percent on your investments,
but if you look at your credit card charges, they
could be at fifteen twenty. I mean I saw sometimes
(16:46):
you get these things in the mail that will offer
free interest or no interest for six months, and then
you need to flip over that page to the less
paragraph and it says after that it goes to twenty
seven point two or whatever, puty one point one. So
there's a lot more to it. So people need to
be aware of a negative return versus a positive return.
(17:07):
So like, do you want to cover a little bit
about good debt versus bad debt? I'll jump in as well.
Speaker 4 (17:12):
Yeah, you know one additional stat that I just pulled
here real quick, Terry. You know, looking at the average
payments for new and used cars right now, so currently
the you know you think about this from a debt standpoint,
the average payment for a new car as it stands
right now is about seven hundred and fifty dollars a
month nationally, and about five hundred and thirty for a
(17:35):
used car.
Speaker 3 (17:36):
So you think about.
Speaker 4 (17:37):
That, it's I mean, it doesn't feel that long ago
where where you'd see a lot of the you know,
one hundred ninety nine two hundred dollars and it would
be the premium ones at this and you know, I
think it shows kind of where things are at and
a lot of the debt that people are taking on
right now, you know, on the auto sector definitely is
still a concern for where people do that So leads
(17:58):
right in exactly to good debt for is bad debts
and where to.
Speaker 3 (18:01):
Have types of debt.
Speaker 4 (18:03):
So you know, if you think about good debts, think
about it as really what are types of debt that
you can take on that can help you build long
term wealth. You know, something could be like a mortgage,
student loan if it's reasonable.
Speaker 3 (18:18):
You know, ken is an investment on.
Speaker 4 (18:19):
Yourself business loans where maybe that's helping you stop start
a company, buy a company, buy out a company, et cetera.
It really can help again with long term wealth or income.
So those you know, oftentimes can have lower interest rates
in the scheme of things with potential benefits. So you know,
(18:39):
you think about a mortgage helping you buy a home,
do need to live somewhere, And you know you do
have a portion of the interest on that that is deductible,
so that that does help if you're itemizing student loans again,
really investing in your education and long term earning potential.
So that's something where I think a lot have debated,
(19:02):
especially with the cost of education right now, do you
still get the return on that or not? And you know,
I think in part it depends on what type of.
Speaker 3 (19:10):
Field you're going to go into.
Speaker 4 (19:11):
And that's a key figure is is this end field
is it? Does it have an earning potential to pay
off you know, one hundred two hundred thousand dollars in
student loans.
Speaker 3 (19:22):
Yeah, that's the question I have.
Speaker 1 (19:24):
Just because it's in the catalog at college doesn't mean
you can make a living doing it.
Speaker 4 (19:28):
Right, Look, I love learning, but you know there there
is a financial aspect to consider on a lot of
it too. You know, business loans again, it can be
a great, great way to look at expanding and you
know that's a key thing on on economic side that
we're looking at this year. And you know, if FED
(19:48):
funds rates do continue to come down, usually that's a
direct impact on a lot of business loans because a
lot of those for small businesses are marked the FED
funds rate plus a premium. So hopefully as that continues
to come down, small mid sized businesses may have easier
access to capital.
Speaker 3 (20:07):
You know, that's the hope of some of that.
Speaker 1 (20:09):
Right now, absolutely, well, we need to take a quick
break here for some news on money talks with Blake Sandbold.
Terry Sandbold and we will be right back. You're listening
to money Talks with Terry Sandbold and Blake Sandbold, and
today we're talking about debt management and Terry is a
(20:31):
critical piece of this whole financial picture in future.
Speaker 2 (20:35):
Oh absolutely, And before the break we talked about good
debt and talked a little bit about that, and it
can be business loans can be good debt. The mortgages
at good interest rates can definitely be good debt as well.
While your money and other dollars are working for your growth,
for your future, there are some bad death types of scenarios,
of course, which there are many examples of that. But
(20:57):
that could be high interest debts, credit cards or payday loans,
and some of those things can become overwhelming. I do
remember one time a person contacted us and said, I
really need to talk to you guys. I've been listening
to your show for many years and I'm probably way
overdue trying to reach out to you guys. But I
really have a debt issue. And I says, okay, tell
(21:20):
me a little bit about that. Well, I do have
credit card balances of over one hundred thousand dollars. And
I said, oh, okay. Not everybody comes across with that
type of comment.
Speaker 1 (21:33):
Were you sitting down?
Speaker 2 (21:35):
I was sitting down and the person was sitting down
when they said that, actually, which was interesting too because
they did walk in for an employment to talk about it.
I said, I've really never talked to anybody else about this.
And I said that's a pretty big burden to deal with,
isn't it? And he said absolutely. So. I mean we
went through a lot of different things and said, okay,
(21:57):
we need to look at the big picture. Let's balance
this out. What are plus is? What are the minuses
on your balance sheet here? And let's get a game
plan in motion. So the person felt confident enough to
reach out to us in that situation. It's too bad
that they waited as long as they did. But in
(22:17):
that case, at least bringing it up and at least
starting to talk about was the first step. So we
don't want you to be in that situation and hold
it within yourself and not bring it up with the
right people and the right advisors and the right consulting
groups to help you with that, because it can be
overwhelming from a health standpoint as well as from a
wealth standpoint, So people need to be aware of that
(22:39):
as well. But I interest credit cards, a lot of
are over twenty percent still and that constrain finances and
impact credit scores, personal loans for non essential items, you know,
different things we've had in the past. If somebody does
call and reach out to us and has a big purchase,
(23:02):
our clients feel comfortable and confident to give us a
call and say, here's what I'm looking at doing. What
is the best and most cost effective way to finance
this if I do need to finance it versus taking
money out of my investments. So we'll go through that
in detail with people. It could be a car like
Blake was mentioned earlier. The cost of a car is
(23:22):
you know, a lot of our fifty two hundred thousand
dollars to buy a car now and it could have
been what a small house would have been thirty forty
years ago, you know that type of thing. So kind
of looking at things there. Auto loans on luxury are
rapidly depreciating vehicles, you know, and as far as putting
(23:43):
a big amount down if you're not planning to keep
that auto for a long period of time, we really
need to help you look at all those different scenarios there.
There's a lot of commercials on TV about payday loans
and those can have extremely high interest in short repayment periods,
and they're really high risk for a lot of people.
So that hopefully is not something you're looking at, but
(24:07):
that those can be examples of bad debt when you
think about it. So should you stop investing to pay
down debt? This is one of the most common financial
questions we hear. Should I stop investing to pay off
my debt? And really there needs to be a bit
of a balance there. Stopping or reducing investment contributions can
free up cash to pay debt faster, but doing so
(24:30):
may slow your long term financial growth. So you really
need to look at the pluses on your investment side
versus the minuses on the negative on the debt side.
And some things that you might want to consider is
what are your long term goals. Cutting back on investments
can interrupt compounding growth. Employer sponsored retirement plans. If your
employer matches four O one K contributions, try to contribute
(24:54):
at least enough to get the full match, because keep
in mind that's always free money from your employer. And
then also reevaluate your investments if you're already trimmed. If
you've already trimmed other expenses and still feel financial strained,
consider whether temporarily redirecting some money towards high interest debt
aligns with your long term plans. And you know, the
(25:19):
thing that we do emphasize is communicating openly with your
advisor is really beneficial because it's it's kind of like,
we need to know what's good on your balance sheet,
but we also need to know what may be a
negative or bad on your balance sheet. Because we're looking
at a holistic plan for you. You can't just take
the eraser and erase all the bad debt. It doesn't
(25:40):
work out quite that easily.
Speaker 4 (25:42):
Yeah, well, I think you know one additional thing that
needs to be looked at, depending on how much debt
you have is you know what is the actual overall
risk profile of your investments, and you know there may
be a discussion spot for saying some of that should change.
You know, as an example, if you've if you've got
some of the high high debt out there and.
Speaker 3 (26:02):
You know your job could be shaky, you know what
you need.
Speaker 4 (26:06):
To make sure you're prepared in a buffer if you
did lose anything on that to not go into even
a worse debt spiral. So essentially, if you look at
the more debt you take on, the financial risk capacity
that you have decreases, which you may not necessarily think
of because you might view, well, my risk tolerance, how
much I feel I can take on hasn't necessarily emotionally changed,
(26:31):
but financially there actually could be an impact of saying
that you need to change how your.
Speaker 3 (26:36):
Portfolio is actually structured.
Speaker 4 (26:37):
So it all comes back to what Terry said on
that communicating with your advisor for where I'm at, why
I'm at the spot, what is a plan to get.
Speaker 3 (26:45):
Get out and through this is important?
Speaker 2 (26:50):
Yeah, So one thing, excuse me, one thing that's always
important too is evaluate that debt also as you're going forward,
meaning listing each balance not the interest rate plus or minus,
and record monthly your payments and then design a payoff
approach to all of that. And there are many different ways.
(27:10):
There's different methods out there as well. One is called
the avalanche method. It's pay off the highest interest debt
first that otherwise, there's another method called the snowball method,
and that's paying off the smallest balance first for quicker
wins and motivation, so you got less accounts on the board,
(27:33):
you know. So it's really looking at what makes sense
for you. But that's where the nelsis comes in. That's
why working with an advisor can make sense because the
thing that a lot of people don't have is enough
time to sit and go through their financial futures. And
if you're looking at that at ten o'clock or ten
thirty at night, when everybody's winding down for the day
and you're trying to make those types of decisions, you're
(27:55):
probably going to be a little bit flustered on trying
to figure it out, and you're probably not going to
get a good night's sleep that night, you know. So
it's really going to be important to work with somebody
that can help you during prime time, so to speak,
look at the financial at your financial future, because it's
hard to balance it all for an individual or for
a family. And that's why we are. We are in
(28:16):
the business of doing what we do. We have the
time that you may not have.
Speaker 1 (28:20):
You know, I do want to ask a question, and
I kind of am going to direct this a little
more at Blake, but whoever wants to take it, you know,
speaking of unused subscriptions or some of the things that
we might want to evaluate if we're really trying to
get lean with our with our debt. You know, there's
all these apps out there now that say, oh, well,
we'll help you cancel your subscriptions and all that kind
(28:40):
of stuff, which you know sounds appealing because who wants
to do it? But I mean, don't they get kind
of a foothold into your financial picture that maybe it's
a little too spy like for for for comfort. I
don't know, Blake, I just wanted to know what your
thoughts were.
Speaker 4 (28:56):
Yeah, there is an opening to that, and you know,
I think a natural one to look at is you know,
if you've got Apple products, you know they actually have
some internal stuff where it can help you cancel different
subscriptions as well. That that's probably I mean, it's already
integrated through that system. So I think ones like that
are you know, a little easier, more tangible for people.
(29:17):
But you know, I think it is for a lot
of people. It is as simple as looking at the
monthly bank statements. You know, I actually pull that out
and say what what are happening every subscription on this,
and you know.
Speaker 3 (29:28):
You think about it.
Speaker 4 (29:30):
I mean, a lot of those subscriptions that started at
seven dollars a couple of years ago are in the
twenties per month, and you know that's that's not uncommon.
If you've got five ten of them, it starts to
add up. So I think that is important to look at.
I mean, I think I do know some of the
softwares out there. There are a number that I have
seen people use that are are good enticing. You know,
(29:53):
I'd probably want to pull in a cyber contact maybe
at some point to talk a little bit about some
of those. But yeah, I think it's a huge part
for people to look at, and you know, they have
such a great appeal by saying, well, it's the slow
monthly payments, but make sure you're actually using it, and
I mean most of them. We can walk away and
go back to if you need to down the road too.
Speaker 3 (30:14):
All helps.
Speaker 1 (30:15):
We need to take a break here, But Terry and
Blake please let everybody know what we've got for our
Money Talks Mailer of the week and how to get one.
Speaker 4 (30:22):
Yeah, we've got a mailer entitled Payoff, Debt or Save.
So it goes through a number of the topics that
we have today, reasons to do each and considerations to make.
So if you'd like your copy, give us a call
at nine to five to two five four four two
eight three seven, or go online to sandboldfg dot com.
Speaker 1 (30:44):
It's Money Talks with Terry Sambled and Blake Sambled and
we've been talking this hour about debt management and good debt,
bad debt and all things. But Blake, you've got a
great event coming up that's got something for everyone.
Speaker 4 (30:57):
We do so January twenty seventh, we've got our twenty
twenty six Market Outlook seminar, So that'll be at our
office at six pm, the in person live. We're very
excited about it and going through a lot of different topics,
you know, ranging from what happened in twenty twenty five,
What led to some of the leadership, What were some
of our calls that we made last year?
Speaker 3 (31:20):
What are we thinking could actually happen this year?
Speaker 4 (31:22):
And you know there's there's a lot on the horizon,
tariff implications, you know, we've got interest rates, policy decisions
changing the FED, mid term elections, you name it, underlying
solid actually economy, and a lot of other geopolitical noise
that's happening. So we're going to tackle and try to
(31:44):
give a lot of thoughts on that and you know,
give some true sectors that we are actually looking at
right now. And you know, this is I think, from
a market standpoint, can be a very different year. I
think from an economy standpoint, it's a different stage the
economic cycle. So it's it's gonna be a a lot
of great information to go through. We're very excited about it.
So seating is limited. If you'd like to tend, give
(32:06):
our office a call at nine to five to two
five four four two eight three seven, or go online
to sandfld FG dot com.
Speaker 1 (32:14):
Perfect. So are you willing to tell me what stage
do you think the economy is in? Or do I
have to wait till the twenty seventh.
Speaker 4 (32:20):
Well, I'll give a little precursor on it. So, you know,
I do think for a lot of the sectors that
we're looking at as rallying right now are actually a
lot of early stage sectors. So it's kind of interesting.
You know, there's so much discussion I think going on.
You know, a recession is imminent or you know, we've
(32:40):
heard that for the last two three years, right and
we're right on the brink of that, and that's really
not what we're seeing at this stage. You know, you're
starting to see small cap companies rally. You're starting to
see transportation companies, industrials, banks.
Speaker 3 (32:55):
Et cetera.
Speaker 4 (32:56):
Those usually are not late stage areas at rally. They're
usually when the economy is accelerating or could pick up
steam in different areas. So you think about kind of
the general context wherein you know, the consumer spending numbers
are still decent right now. You know, will need to
be cognizant of where some of that can go. But
(33:21):
you know, the general theme is really that there should
be additional spending on manufacturing, and if some of this
AI stuff is real, there should be margin expansion in
companies where productivity should grow. You think about productivity growth,
it's really deflationary in general, so you could see a
period of actually having wage growth above inflation for a
(33:44):
period of time. So I think you look at that
the next year or two years. There is actually a
decent case for you know, a strong economic environment. But
you know, it does mean that there's gonna be different
areas in the market to look at.
Speaker 3 (33:58):
You know, valuations have changed.
Speaker 4 (34:01):
You know, I think it's going to be a year
to not necessarily get cozy and exactly what had worked
for the last five ten years. So having some rotation
and there's going to be really important. That's what we've
been talking our clients about. So yeah, I think, you know,
all that to be said, there's still may be some
choppiness this year in the market. You know, we've been
(34:21):
talking a lot about that, but I think point to
point it will be decent and we've just got to
follow where the business cycle is going, which it looks
in a good spot right now.
Speaker 1 (34:31):
That's cool.
Speaker 2 (34:33):
So it does go along with the proactive money management
that we always talk about versus just a reactive money
management and looking at what are going to be the
opportunities going forward and that's why we think it is
important to work with the financial advisor group like ours
that looks at that in that fashion, because you could
put your investments across the board and do okay. But
(34:55):
like Blake mentioned, when we build our models and we
look at based on risk, the different models we put
together and then actively manage them, we're looking for the
opportunities as they come forward. So I think that's really critical.
If you're not getting the attention that you deserve, this
might be a great opportunity to have that second opinion.
(35:15):
And we are out here to help you and better
your financial future. But a lot of things to keep
in mind. And I think one of the hardest things
for a lot of people is having enough time to
do this all by themselves. I can't say that enough
because a lot of people tend to say, well, I
had a busy day, I'll look at it tomorrow, and
then I'll look at it next week, and then all
(35:36):
of a sudden, one quarter's gone, and oh, I didn't
look at my investments this first quarter. I guess I
should have, and then all of a sudden things do change.
So that can make a difference on your portfolio return.
So it's really important to have a team to work
with you, just like it is important to have an
attorney firm to help you with wills and trusts and
documents like that, and then a CPA. And if you
(35:59):
have a complex tax return, that's not the right time
to try to do self study on your tax return.
So I think it's very critical to look at that
have a team to surround you in all those areas,
and we can be one of the team members. We'd
like to offer the opportunity to meet with us to
go through that and show you how we can earn
(36:19):
your business. But today we're talking about debt. Yep, go ahead.
Speaker 1 (36:24):
Well we are well and you know, Terry, in addition
to not having time to do it all by yourself,
we have heard forever from people, Oh I wish I
would have come in sooner, And it's like, don't deprive
yourself of the professional advice for a long time, because
you could be depriving yourself of progress, right, Terry.
Speaker 2 (36:42):
Yeah. And the one thing that I always talk to
people about when I talk about their investments, they said,
our job is to raise your net return, which is
the money you get to keep, and that's the bottom line.
So if we can help you do that, you are winning,
and that's what it's all about. So we'd like to
offer our abilities and show you what we can do
(37:04):
to help you in that arena. And we have helped
thousands and we are helping thousands nationwide with that, and
we would like to help you too. So if you've
been listening to the show for many weeks or months
or years, take the next step, give us a call.
We'd be glad to talk and be with you and
(37:26):
have it on your New Year's resolutions. I want to
make twenty twenty six my best financial year ever, and
I want a team that can help me do that.
So we are here to help, and that's why we
do the show. We want to make sure that we're
reaching out to as many people as we can, helping
them with the right information to make the right decisions.
So again today we're talking about debt, which is an
(37:47):
important piece to look at as well. And debt management
isn't really about eliminating all debt. It's about balance and
consistently making small, smart choices builds financial confidence and stability
over time. So a very important topic nobody likes to
talk about budgets and debt and the negative side of
(38:12):
the world. But again, there is good debt and there
is bad debt. So again we want to help you
make the most of your financial future.
Speaker 3 (38:24):
Yeah.
Speaker 4 (38:24):
I think that's that's a key part is you know,
get in, get the analysis, and you know, it's the
realization that everyone's individual situation is different. And you know,
I think there's a key part is there's there's no
time like the present to look through all of this.
You know, if if there are is is debt outstanding,
it's it's important to know what options that you have
(38:45):
and you know, whether that be you know, if it's
a lot of high high credit interest uh, you know,
there there could be a case where you say, well
maybe there's a home equity line or something like that
to try to refinance into lower debts uh and make
things more attainable.
Speaker 3 (39:00):
So there's there always can be options out there.
Speaker 4 (39:04):
And you know, it's just uh, just important to know
what they are and what that strategy ends up being.
Speaker 1 (39:10):
Absolutely.
Speaker 3 (39:11):
Yeah.
Speaker 2 (39:12):
I was just going to say, when you when you
have on your credit cards, if you have a credit
card max limit, that does not mean you have to
ring that ring that bell for it's not a suggestion,
so Kelly, don't go for that number. It's supposed to
be much much less than that number.
Speaker 1 (39:29):
So anyway, we've got just about a minute left and Terry,
you know, I think you know, like we said a
moment ago, it's New Year's you know, we make resolutions,
but you know, do something for yourself and you'll do
a no cost, no obligation review or second opinion, and
it's just it's just take those steps, right. How do
people do that?
Speaker 2 (39:50):
Absolutely? Yeah, when you're sitting down and looking at what
should I do next? One way that you can reach
out and we can help you reach out with to
better your financial future. Give us a call at Sandwold
Financial Group. Our number is nine five two five four
four two eight three seven. Again that's nine five two
five four four two eight three seven. Or request a
(40:14):
conversation or meeting online at SANDVOLDFG dot com.
Speaker 1 (40:19):
And you know what else you can do Blake at
SAANDVILDFG dot com. Or that phone number is sign up
for the event real quick.
Speaker 4 (40:25):
Yeah, January twenty seventh, that's six pm. We've got our
twenty twenty six market outlook, so absolutely go online or
call us nine, five, two five, four four two eight
three seven and samdvoldfg dot com
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