June 3, 2024 • 28 mins
Money news wealth management Investments
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Ask The Experts Florida is broadcast live Mondays at 9AM ET and Thursdays at 5PM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Ask The Experts Florida is viewed on Talk 4 TV (www.talk4tv.com).
Ask The Experts Florida Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
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(00:00):
The topics and opinions expressed in thefollowing show are solely those of the hosts
and their guests and not those ofW FOURCY Radio, it's employees are affiliates.
We make no recommendations or endorsements forradio show programs, services, or
products mentioned on air or on ourweb. No liability explicitor impliedes shall be
extended to W FOURCY Radio or it'semployees or affiliates. Any questions or comments
should be directed to those show hosts. Thank you for choosing W FOURCY Radio.
(00:26):
Welcome to the Ask the Experts showon W FOURCY Radio and Talk for
TV, where we bring you educationalinformation from top local experts in the fields
of legal, health, financial andhome improvement. Now sit back and listen
to experts in family law, association, law, hearing laws, business brokers,
(00:47):
home care, along with many othertopics. Now Here are your hosts,
Stevo and Sophia. Hey, Goodmorning, Florida. Welcome to another
Ask the Experts where we bring youthe top experts in the field of legal,
health, financial, and home improvement. For about the last two years,
(01:08):
this has been a local Tampa show, and we made a decision that
this show our expert this morning issuch an important topic that we promote this
show throughout the state of Florida.So when I said, good Morning Florida,
(01:32):
it's because this now is we targetFlorida instead of just Hampa. I
am so excited that we can getmore people educated in the field of money
management wealth management. And I gotto tell you it was such an easy
decision because we have got the greatestcompany and Provised Management Group with Ray Ferrara.
(02:00):
It's just and this show goes byso fast. Let me welcome our
expert, Ray Ferrara. Good morning, Ray, Good morning Steve and as
always, Happy Monday. Happy Monday. Raised with us twice a month,
and it just I think he's gotthis crystal ball because it is so amazing
(02:24):
the things that he has said onthis show that have come true. And
you know, as a client ora potential client to provide what a great
company to represent your money. Ray. Now we've got all these new people
tuning in. Tell people about ProvisedManagement Group, well, Steve, be
(02:49):
happy to do that. Part LizeManagement Group was founded in nineteen eighty six
and since that time we have grownto one of the largest registered investment advisory
firms in the country ranked in thetop three hundred by Financial Advisor magazine.
But we see ourselves as a financialplanning firm first and foremost, and an
(03:15):
investment management second. We always believethat the investment management has the opportunity to
be more successful once we understand theholistic, greater picture of our clients.
We have fourteen financial advisors that arebacked up by a wonderful staff of sixteen
(03:37):
folks. We have offices in Tampaand Clearwater, but we have clients scattered
over thirty four states, and we'remanaging about one point nine billion dollars on
behalf of those. And we believethat everything starts with a financial plan first
and foremost. For some, it'sa simple one page with the four or
(04:00):
five bullets of it. For others, obviously, it's much more complicated.
But we again we believe that witha written financial plan, the odds of
your success increased dramatically. So wealways offer a one hour free consultation to
anyone uh in either of our offices, and for those that are outside of
(04:24):
the Tampa Bay area, we're alwaysavailable by zoom and delighted to add new
folks to our growing family of clients, and if anybody wants to reach us,
of course, there's the number scrollingacross the bottom right now seven two
seven four four one nine zero twotwo at seven two seven four four one
(04:46):
nine zero two two. And youcan also visit our website provis dot com.
Ray. We've been doing the showfor over two years now. One
of the things I've learned about youyou really do care about people. You
really do care about your clients,and I think that's half the battle right
(05:12):
there. Well, there's no questionthat a personal touch makes a difference.
And we connect with our clients notonly around their finances, but we know
their family. We connect with themat an emotional level and celebrate those joyous
occasions like all the graduations that havebeen going on for the past month,
(05:34):
and then those not so joyous occasionsas as well. But we feel very
feel it's very important to stay closeto our clients and to visit with them
on a regular basis. Well,let's jump right in Molly in Tampa,
(05:56):
dal She said, now that weare retired, do we really need to
keep our life insurance policy? Itseems like after paying all these years that
we should have to give it up. Well, Molly, you know,
we buy life insurance in our opinionfor three reasons. One is to replace
income in the event of the prematuredeath of the breadwinner, whoever that may
(06:21):
be, and today, of courseit's usually both members of a family.
The second is to pay off debtsin case of a premature debt or a
death, and then the third isfor a state taxes. So the question
to ask yourself is do you needto replace income, Well, if you're
(06:43):
retired, probably not. Do youhave any debts left? If you do,
then carrying enough life insurance to payoff those debts might make might make
some sense. And then thirdly,to pay a state taxes. And unless
your state is above roughly twenty fivemillion dollars at this point, husband and
wife have that for a single individual, there's no need for the life insurance
(07:08):
for state taxes. So if you'rehaving to continue to pay the premiums on
that life insurance, that's cutting intoother things that you might be able to
do with the money. So whatdo you do with it? Well,
you really have three choices. Whenyou could just cash it in, assuming
it's a cash value policy. Ifit's a turn policy, you could just
(07:30):
stop paying the premiums and it'll goaway. If it's a cash value policy,
you'll get the cash back if youturn it in. But you may
also want to think in terms oflooking at potentially selling the life insurance policy,
which can be done with a numberof very reputable firms. And in
(07:51):
this case investors actually buy the policy. Often it's a pension plan that is
buying the life insurance policies. Andwhy would they buy it, Well,
they know that if they continue topay the premiums on the policy that there
will be an eventual death that willoccur and then they will get the proceeds.
(08:15):
In the meantime, you get anice lump sum check from the investor,
no longer have to pay the premiums, and you've got some additional money
for travel or whatever else it isthat you want to do. Unfortunately,
the healthier you are, I knowthis is kind of counterinduitive, but unfortunately
(08:35):
the healthier you are, the loweryou're going to get for the policy because
they're going to have calculated your longevityactuarily, and healthy people obviously live longer
than unhealthy people. So it isworth investigating rather than just turning in the
policy. Usually, if the policyis over one hundred thousand dollars, it
(09:00):
is something that can be sold inwhat is called the biatical marketplace, and
we would encourage you to look atthat potential possibility again. Life insurance for
three reasons, Steve, replace income, pay debt, and pay a state
taxes. If you don't have aneed for any one of those three reasons,
you probably don't need any life insuranceat all. I know it's hard
(09:22):
for people to give it up thatwe're all hugging that tree. Yes,
we made those premiums all those yearsand gosh, you meana not going to
collect on it. Well, atthis point in life, sometimes it's best
to just go ahead and give itup. Right. Do you think the
(09:43):
governor is going to sign off onthis making marijuana legal in Florida. Well,
it's not the governor that gets tosign off on it. It's actually
an amendment to the Florida Constitution thatwe'll be voting on in November, and
if memory serves me correctly, it'san Amendment three and essentially it would legalize
(10:07):
the recreational use of marijuana in Florida, just as a number of other states
that have done right now in Florida. Of course, we do have medical
marijuana that is available. You haveto see a doctor get an essence of
prescription from a doctor who has beenchanged and trained in determining whether you are
(10:35):
whether you qualify medically Florida or not. And now this amendment would absolutely make
it legal in Florida to purchase it. If it were to go through,
it will certainly have an economic impactin Florida in that the government will collect
(10:58):
acts on the marijuana just as itdoes now on the medical marijuana and sort
of increase the revenues for the state. But it would also expand cannabis and
all of its related products to thesefirms that are currently providing the medical marijuana
and probably attract others. And thereare certainly ways for people who believe that
(11:26):
marijuana is a future economic gainer toinvest into that we don't ever name specific
companies on this show, but certainlyworth investigating, and probably in addition to
investment opportunities, may even produce anopportunity for many people to find opportunities for
(11:52):
themselves and small businesses that might supportsupport the industry. So Yes, voting
yes will legalize marijuana and of coursewe need sixty percent of the voters to
do it. Right now, thepolls are suggesting that it will pass,
so we'll just have to wait anotherfour or five, about five more months
before we'll know for sure. Ray, have you seen her other states who
(12:16):
have legalized it that there have becomeeconomic opportunities? Oh? Absolutely, you
know, there is no question,both in terms of investment opportunities that exist
as the industry expands and smaller businessesthat are able to crop up as a
(12:37):
result of it. In support ofthe support of the industry. Okay,
Ray, do you think active arepassive investing is the best alternative? Per
SAE the average investor, So Steve, I always answer that question with yes.
(12:58):
Both have their pluses and their minuses. Passive active management comes where there
is a manager, usually in theform of a mutual mutual fund, who
is making the decisions about what themutual fund is going to buy and or
(13:20):
sell at any any given time,so hence the term active, the portfolio
is continuing to turn over all ofthe time. In passive investments, which
are generally supported by an exchange tradedfund or e t F exchange traded fund,
(13:41):
the portfolio is a static one.The best example of an exchange traded
fund is the S and P fivehundred, and it usually comes in two
varieties. One of the ETFs hasequal weighted. That means all five hun
hundred companies in the S and Pfive hundred are equally weighted, so in
(14:07):
that particular case, each of themwould represent about two tenths of the of
the portfolio. On the on theother hand, you can you can have
market weighted, and that is thebigger you are, the more you are
as part of the of the portfolio, and right now, with Nvidia doing
(14:31):
as well as it's doing it alone, right now represents about eight percent of
the S and P five hundred,so as opposed to such a small number
over here in the equal weighted whereit's only like two tenths of one percent
in a in a market weighted it'seight percent. So the bigger you are,
(14:54):
the more you are. Both arepassive and as a result of their
not having be any turnover in notbeing any research to be done. Once
the basket of stocks is put togetherinto an exchange traded fund, the management
fee is very small. A typicalmutual fund all in is going to have
costs. It'll be somewhere between eightyand one hundred basis points, where in
(15:20):
an ETF it may have something that'sfive to eight basis points, so much
less expensive. And there's an argumenton both sides as to which is better,
and you know, Steve, likeany argument, both sides have their
legitimate arguments to support why one isbetter than the other. What we have
(15:41):
found it provides is that we useas the core part of our portfolio the
passive approach, and then with theactive approach, we try to pick managers
in areas where we still think there'san opportunity for the active manager to add
value beyond whatever the market might doitself. So we sort of have a
(16:04):
core and a satellite approach to theactive active management. Plus our team does
tick individual stocks for the equity partsof our portfolio in many cases, and
so in that sphere we are activemanagers but still using passive investments underneath.
(16:26):
So which one is better? Theanswer is yes, just depends on what
it is that you're trying to doand how you're trying to do it.
We just got a text from anew viewer in Coral Springs. Just found
your show last month. I lovelistening to investment podcast. I must tell
(16:52):
you you have one of the best. I really enjoy listening to your show.
What I am a small investor?Am I? I guess he's wanting
to know if a small investor canget started with your company. The short
(17:12):
answer is yes and and the definitionof small is up for grabs. Yes,
you know we we do. Wedo have a minimum fee of seven
and fifty dollars a quarter in workingwith people. So uh, as long
(17:33):
as somebody is willing to pay thatfee, we will be happy to take
the people on and to grow withthem over over time. If if one
is not willing to pay the fee, uh, there are lots of excellent
companies out there that will work withsmall investors. Uh. And again,
(17:57):
I'm not going to name any orendorse any firms. But the key thing
that any investor large or small,in our opinion, needs to do is
to work with a certified financial plannera CFP professional. Why. The reason
is very simple. The first,the most important thing about the CFP designation
(18:21):
is that you're having to deal witha person who has gone through a rigorous
exam, who has to take continuingeducation courses to maintain their certification. But
most importantly of all, is thererequired to provide financial advice at a fiduciary
standard of care. And that meansthey must always put your interests ahead of
(18:47):
ahead of their own. And sowhether you're large or small, not all
investors are held to that very highstandard. Excuse me, not all advisors
are held to that very high standard. But encourage you to seek out a
CFP professional. Where can you findone? Simply go to CFP board dot
(19:07):
org cfpboard dot org and you willfind a button there that will allow you
to enter your zip code and itwill give you the names of all of
the CFP professionals generally within a twentyfive mile radius of where you live.
We encourage you to visit with atleast three of them, because you want
(19:30):
to look for someone who has agood table side manner that you can relate
to and who speaks to you atthe level that you need to know to
understand the investments and the things thatyou're going to be doing. If somebody
says to you, hey, don'tworry about it, Steve, I know
what's best for you, probably timefor Steve to walk out the door and
(19:52):
find somebody who is a CFP professional. That's good advice. Bruce in Miami.
He says, you have never beena fan of bitcoin or other cryptocurrencies,
but I think it's a great investment. Why are you against it?
(20:14):
Well, Bruce, the reason isvery simple. We do not see bitcoin
as an investment. In our opinion. Have something that is an investment.
It has to it has to producesomething, it has to have something behind
it, and bitcoin is only Thebeauty of bitcoin is is that it's all
(20:41):
The price is always in the eyeof the boulder. We've seen over the
past twelve to eighteen months, it'dbe as high as it is today in
the seventy thousands and as low asfourteen fifteen thousand, not all that long
ago. And the reason is it'smuch like the stocks that are clearly not
(21:03):
worth the volatility that's involved with thesestocks. It's just people who are trying
to run the price up and tryto make a quick dollar. Bitcoin doesn't
produce anything, it doesn't have anydividends. There's no way to really value
it other than how many people arewilling to own it, how many people
are willing to sell it. Inthose kinds of investments. We see it
(21:26):
as something that is not a strongpart of our client's portfolio. Steve,
You've heard me say on numerous occasions. You know, we're just vanilla ice
cream, And if you don't likevanilla ice cream, you're not going to
like our investment approach. You know, Bitcoin may be a great investment for
some who are willing to speculate andto take chances and who can, but
(21:51):
for the average investor, it reallydoesn't have much of a of a place
in their portfolio. If you haveto have it, make it Las Vegas
money, buy it, keep it, you know, but know that if
you lose it, it's not goingto change your life or your lifestyle.
We just got another text message fromRobin uh import Saint Lucy. She wants
(22:15):
to know who is your favorite investmenthost on TV who gives out the best
information? Well, who's my favoriteand who's the best? They may be
two different, they may be toodifferent. You know, there are a
(22:40):
lot of good folks on on TV. Most of the folks on CNBC I
feel very comfortable with. I dowatch it every morning as I'm getting ready
to go to work for the day. But you know, there Fox Uh
has some good folks. I meanthere there are a lot of different outlets
(23:04):
that are Bloomberg another one, uhthat are that are doing well. But
if you made me pick you know, my absolute favorite, you know,
golly, I, I just there'sjust too many good ones to you know,
to to do that. I dolove the battles on CBN C c
(23:27):
NBC in the morning, uh,between Andrew Becky and and the team there.
Uh, and you know it's uh, it's good entertainment as well as
good information. Okay. Jennifer inNaples, she said, I just inherited
(23:49):
my mother's IRA, which is substantial, and I want to hold on to
it until I retire in another tenyears. How should I invest in?
Well, two things before we talkabout how it should be invested. The
first thing is is did your mompass away before or after her required beginning
(24:15):
date? And what is that?Well, it was either age seventy,
seventy two or now seventy three,So you need to determine whether your mom
was over any of those ages andagain had changed over time. For instance,
(24:37):
for me, it was when Iturned seventy that I had to start
taking money out. For anybody today, it's not until age seventy three.
Why is that important. The reasonthat that is important is if your mom
passed away prior to her required beginningdate, don't have to take any money
(25:00):
out at all during the next tenyears, But at the end of the
tenth year, you would have totake out one hundred percent because it must
now come out over a ten yearperiod of time. So you would probably
be better off investing into a nice, moderate program considering how close you are
(25:22):
to retirement, and then over timewithdraw it in smaller amounts over the next
ten years so that you're able tokeep the income tax down and that you're
not having to pay a big taxif you had to take it one hundred
percent out at the end of theof the tenth year. On the other
hand, if your mom was overher required beginning date and was already withdrawing
(25:45):
money from her IRA, you mustcontinue to take that money out every year.
Now, the interesting twist on allof this is is that although that's
been the case for the last twoor three years, the IRS has has
waived that response have waived that forthe last three years. So it's very
(26:07):
complicated. It's it's not simple it'snot straightforward, so visit with a financial
professional that can help you sort throughthe different options that are there and then
determine your own tolerance for risk andthen set up a portfolio that's proportionate of
that to set you up for aretirement for yourself. Right. This show
(26:32):
always goes by so fast. Forthose who are listening to podcasts or radio,
give them your phone number in yourwebsite where they can reach you.
Sure, Steve. Anybody can reachout to us with a simple question,
or take advantage of our complimentary onehour consultation by calling seven to two seven
(26:55):
four four one nine zero two totwo. That's seven two seven four four
one nine zero two two, orsimply go to provis dot com. That's
p R o v I s Edot com, provis dot com. Ray,
(27:15):
we love having you on. Youadd so much to the show,
and we'll see you in a coupleof weeks. I'll look forward to it,
Steve. In the meantime, besafe and be well you too,
Ray, God bless thank you.That's Ray Ferarro, provis Management Group.
He's been with us for over twoyears. Just great, great information.
(27:38):
That's it for us today. We'llbe back again with you next week with
more Askdexperts. Thanks for tuning intoday to the Ask the Experts show on
the W four c Y radio andTalk for TV. Tune in next week
and every week to hear more fromour experts on personal injury, insurance,
(27:59):
air conditioning, estate planning, medicare, and many other topics in the areas
of legal, health, financial,and home improvement. See you next week.
The topics and opinions expressed in thefollowing show are solely those of the hosts
and their guests and not those ofW FOURCY Radio, it's employees are affiliates.
We make no recommendations or endorsements forradio show programs, services, or
products mentioned on air or on ourweb. No liability explicitor impliedes shall be
extended to W FOURCY Radio or it'semployees or affiliates. Any questions or comments
should be directed to those show hosts. Thank you for choosing W FOURCY Radio.
(00:26):
Welcome to the Ask the Experts showon W FOURCY Radio and Talk for
TV, where we bring you educationalinformation from top local experts in the fields
of legal, health, financial andhome improvement. Now sit back and listen
to experts in family law, association, law, hearing laws, business brokers,
(00:47):
home care, along with many othertopics. Now Here are your hosts,
Stevo and Sophia. Hey, Goodmorning, Florida. Welcome to another
Ask the Experts where we bring youthe top experts in the field of legal,
health, financial, and home improvement. For about the last two years,
(01:08):
this has been a local Tampa show, and we made a decision that
this show our expert this morning issuch an important topic that we promote this
show throughout the state of Florida.So when I said, good Morning Florida,
(01:32):
it's because this now is we targetFlorida instead of just Hampa. I
am so excited that we can getmore people educated in the field of money
management wealth management. And I gotto tell you it was such an easy
decision because we have got the greatestcompany and Provised Management Group with Ray Ferrara.
(02:00):
It's just and this show goes byso fast. Let me welcome our
expert, Ray Ferrara. Good morning, Ray, Good morning Steve and as
always, Happy Monday. Happy Monday. Raised with us twice a month,
and it just I think he's gotthis crystal ball because it is so amazing
(02:24):
the things that he has said onthis show that have come true. And
you know, as a client ora potential client to provide what a great
company to represent your money. Ray. Now we've got all these new people
tuning in. Tell people about ProvisedManagement Group, well, Steve, be
(02:49):
happy to do that. Part LizeManagement Group was founded in nineteen eighty six
and since that time we have grownto one of the largest registered investment advisory
firms in the country ranked in thetop three hundred by Financial Advisor magazine.
But we see ourselves as a financialplanning firm first and foremost, and an
(03:15):
investment management second. We always believethat the investment management has the opportunity to
be more successful once we understand theholistic, greater picture of our clients.
We have fourteen financial advisors that arebacked up by a wonderful staff of sixteen
(03:37):
folks. We have offices in Tampaand Clearwater, but we have clients scattered
over thirty four states, and we'remanaging about one point nine billion dollars on
behalf of those. And we believethat everything starts with a financial plan first
and foremost. For some, it'sa simple one page with the four or
(04:00):
five bullets of it. For others, obviously, it's much more complicated.
But we again we believe that witha written financial plan, the odds of
your success increased dramatically. So wealways offer a one hour free consultation to
anyone uh in either of our offices, and for those that are outside of
(04:24):
the Tampa Bay area, we're alwaysavailable by zoom and delighted to add new
folks to our growing family of clients, and if anybody wants to reach us,
of course, there's the number scrollingacross the bottom right now seven two
seven four four one nine zero twotwo at seven two seven four four one
(04:46):
nine zero two two. And youcan also visit our website provis dot com.
Ray. We've been doing the showfor over two years now. One
of the things I've learned about youyou really do care about people. You
really do care about your clients,and I think that's half the battle right
(05:12):
there. Well, there's no questionthat a personal touch makes a difference.
And we connect with our clients notonly around their finances, but we know
their family. We connect with themat an emotional level and celebrate those joyous
occasions like all the graduations that havebeen going on for the past month,
(05:34):
and then those not so joyous occasionsas as well. But we feel very
feel it's very important to stay closeto our clients and to visit with them
on a regular basis. Well,let's jump right in Molly in Tampa,
(05:56):
dal She said, now that weare retired, do we really need to
keep our life insurance policy? Itseems like after paying all these years that
we should have to give it up. Well, Molly, you know,
we buy life insurance in our opinionfor three reasons. One is to replace
income in the event of the prematuredeath of the breadwinner, whoever that may
(06:21):
be, and today, of courseit's usually both members of a family.
The second is to pay off debtsin case of a premature debt or a
death, and then the third isfor a state taxes. So the question
to ask yourself is do you needto replace income, Well, if you're
(06:43):
retired, probably not. Do youhave any debts left? If you do,
then carrying enough life insurance to payoff those debts might make might make
some sense. And then thirdly,to pay a state taxes. And unless
your state is above roughly twenty fivemillion dollars at this point, husband and
wife have that for a single individual, there's no need for the life insurance
(07:08):
for state taxes. So if you'rehaving to continue to pay the premiums on
that life insurance, that's cutting intoother things that you might be able to
do with the money. So whatdo you do with it? Well,
you really have three choices. Whenyou could just cash it in, assuming
it's a cash value policy. Ifit's a turn policy, you could just
(07:30):
stop paying the premiums and it'll goaway. If it's a cash value policy,
you'll get the cash back if youturn it in. But you may
also want to think in terms oflooking at potentially selling the life insurance policy,
which can be done with a numberof very reputable firms. And in
(07:51):
this case investors actually buy the policy. Often it's a pension plan that is
buying the life insurance policies. Andwhy would they buy it, Well,
they know that if they continue topay the premiums on the policy that there
will be an eventual death that willoccur and then they will get the proceeds.
(08:15):
In the meantime, you get anice lump sum check from the investor,
no longer have to pay the premiums, and you've got some additional money
for travel or whatever else it isthat you want to do. Unfortunately,
the healthier you are, I knowthis is kind of counterinduitive, but unfortunately
(08:35):
the healthier you are, the loweryou're going to get for the policy because
they're going to have calculated your longevityactuarily, and healthy people obviously live longer
than unhealthy people. So it isworth investigating rather than just turning in the
policy. Usually, if the policyis over one hundred thousand dollars, it
(09:00):
is something that can be sold inwhat is called the biatical marketplace, and
we would encourage you to look atthat potential possibility again. Life insurance for
three reasons, Steve, replace income, pay debt, and pay a state
taxes. If you don't have aneed for any one of those three reasons,
you probably don't need any life insuranceat all. I know it's hard
(09:22):
for people to give it up thatwe're all hugging that tree. Yes,
we made those premiums all those yearsand gosh, you meana not going to
collect on it. Well, atthis point in life, sometimes it's best
to just go ahead and give itup. Right. Do you think the
(09:43):
governor is going to sign off onthis making marijuana legal in Florida. Well,
it's not the governor that gets tosign off on it. It's actually
an amendment to the Florida Constitution thatwe'll be voting on in November, and
if memory serves me correctly, it'san Amendment three and essentially it would legalize
(10:07):
the recreational use of marijuana in Florida, just as a number of other states
that have done right now in Florida. Of course, we do have medical
marijuana that is available. You haveto see a doctor get an essence of
prescription from a doctor who has beenchanged and trained in determining whether you are
(10:35):
whether you qualify medically Florida or not. And now this amendment would absolutely make
it legal in Florida to purchase it. If it were to go through,
it will certainly have an economic impactin Florida in that the government will collect
(10:58):
acts on the marijuana just as itdoes now on the medical marijuana and sort
of increase the revenues for the state. But it would also expand cannabis and
all of its related products to thesefirms that are currently providing the medical marijuana
and probably attract others. And thereare certainly ways for people who believe that
(11:26):
marijuana is a future economic gainer toinvest into that we don't ever name specific
companies on this show, but certainlyworth investigating, and probably in addition to
investment opportunities, may even produce anopportunity for many people to find opportunities for
(11:52):
themselves and small businesses that might supportsupport the industry. So Yes, voting
yes will legalize marijuana and of coursewe need sixty percent of the voters to
do it. Right now, thepolls are suggesting that it will pass,
so we'll just have to wait anotherfour or five, about five more months
before we'll know for sure. Ray, have you seen her other states who
(12:16):
have legalized it that there have becomeeconomic opportunities? Oh? Absolutely, you
know, there is no question,both in terms of investment opportunities that exist
as the industry expands and smaller businessesthat are able to crop up as a
(12:37):
result of it. In support ofthe support of the industry. Okay,
Ray, do you think active arepassive investing is the best alternative? Per
SAE the average investor, So Steve, I always answer that question with yes.
(12:58):
Both have their pluses and their minuses. Passive active management comes where there
is a manager, usually in theform of a mutual mutual fund, who
is making the decisions about what themutual fund is going to buy and or
(13:20):
sell at any any given time,so hence the term active, the portfolio
is continuing to turn over all ofthe time. In passive investments, which
are generally supported by an exchange tradedfund or e t F exchange traded fund,
(13:41):
the portfolio is a static one.The best example of an exchange traded
fund is the S and P fivehundred, and it usually comes in two
varieties. One of the ETFs hasequal weighted. That means all five hun
hundred companies in the S and Pfive hundred are equally weighted, so in
(14:07):
that particular case, each of themwould represent about two tenths of the of
the portfolio. On the on theother hand, you can you can have
market weighted, and that is thebigger you are, the more you are
as part of the of the portfolio, and right now, with Nvidia doing
(14:31):
as well as it's doing it alone, right now represents about eight percent of
the S and P five hundred,so as opposed to such a small number
over here in the equal weighted whereit's only like two tenths of one percent
in a in a market weighted it'seight percent. So the bigger you are,
(14:54):
the more you are. Both arepassive and as a result of their
not having be any turnover in notbeing any research to be done. Once
the basket of stocks is put togetherinto an exchange traded fund, the management
fee is very small. A typicalmutual fund all in is going to have
costs. It'll be somewhere between eightyand one hundred basis points, where in
(15:20):
an ETF it may have something that'sfive to eight basis points, so much
less expensive. And there's an argumenton both sides as to which is better,
and you know, Steve, likeany argument, both sides have their
legitimate arguments to support why one isbetter than the other. What we have
(15:41):
found it provides is that we useas the core part of our portfolio the
passive approach, and then with theactive approach, we try to pick managers
in areas where we still think there'san opportunity for the active manager to add
value beyond whatever the market might doitself. So we sort of have a
(16:04):
core and a satellite approach to theactive active management. Plus our team does
tick individual stocks for the equity partsof our portfolio in many cases, and
so in that sphere we are activemanagers but still using passive investments underneath.
(16:26):
So which one is better? Theanswer is yes, just depends on what
it is that you're trying to doand how you're trying to do it.
We just got a text from anew viewer in Coral Springs. Just found
your show last month. I lovelistening to investment podcast. I must tell
(16:52):
you you have one of the best. I really enjoy listening to your show.
What I am a small investor?Am I? I guess he's wanting
to know if a small investor canget started with your company. The short
(17:12):
answer is yes and and the definitionof small is up for grabs. Yes,
you know we we do. Wedo have a minimum fee of seven
and fifty dollars a quarter in workingwith people. So uh, as long
(17:33):
as somebody is willing to pay thatfee, we will be happy to take
the people on and to grow withthem over over time. If if one
is not willing to pay the fee, uh, there are lots of excellent
companies out there that will work withsmall investors. Uh. And again,
(17:57):
I'm not going to name any orendorse any firms. But the key thing
that any investor large or small,in our opinion, needs to do is
to work with a certified financial plannera CFP professional. Why. The reason
is very simple. The first,the most important thing about the CFP designation
(18:21):
is that you're having to deal witha person who has gone through a rigorous
exam, who has to take continuingeducation courses to maintain their certification. But
most importantly of all, is thererequired to provide financial advice at a fiduciary
standard of care. And that meansthey must always put your interests ahead of
(18:47):
ahead of their own. And sowhether you're large or small, not all
investors are held to that very highstandard. Excuse me, not all advisors
are held to that very high standard. But encourage you to seek out a
CFP professional. Where can you findone? Simply go to CFP board dot
(19:07):
org cfpboard dot org and you willfind a button there that will allow you
to enter your zip code and itwill give you the names of all of
the CFP professionals generally within a twentyfive mile radius of where you live.
We encourage you to visit with atleast three of them, because you want
(19:30):
to look for someone who has agood table side manner that you can relate
to and who speaks to you atthe level that you need to know to
understand the investments and the things thatyou're going to be doing. If somebody
says to you, hey, don'tworry about it, Steve, I know
what's best for you, probably timefor Steve to walk out the door and
(19:52):
find somebody who is a CFP professional. That's good advice. Bruce in Miami.
He says, you have never beena fan of bitcoin or other cryptocurrencies,
but I think it's a great investment. Why are you against it?
(20:14):
Well, Bruce, the reason isvery simple. We do not see bitcoin
as an investment. In our opinion. Have something that is an investment.
It has to it has to producesomething, it has to have something behind
it, and bitcoin is only Thebeauty of bitcoin is is that it's all
(20:41):
The price is always in the eyeof the boulder. We've seen over the
past twelve to eighteen months, it'dbe as high as it is today in
the seventy thousands and as low asfourteen fifteen thousand, not all that long
ago. And the reason is it'smuch like the stocks that are clearly not
(21:03):
worth the volatility that's involved with thesestocks. It's just people who are trying
to run the price up and tryto make a quick dollar. Bitcoin doesn't
produce anything, it doesn't have anydividends. There's no way to really value
it other than how many people arewilling to own it, how many people
are willing to sell it. Inthose kinds of investments. We see it
(21:26):
as something that is not a strongpart of our client's portfolio. Steve,
You've heard me say on numerous occasions. You know, we're just vanilla ice
cream, And if you don't likevanilla ice cream, you're not going to
like our investment approach. You know, Bitcoin may be a great investment for
some who are willing to speculate andto take chances and who can, but
(21:51):
for the average investor, it reallydoesn't have much of a of a place
in their portfolio. If you haveto have it, make it Las Vegas
money, buy it, keep it, you know, but know that if
you lose it, it's not goingto change your life or your lifestyle.
We just got another text message fromRobin uh import Saint Lucy. She wants
(22:15):
to know who is your favorite investmenthost on TV who gives out the best
information? Well, who's my favoriteand who's the best? They may be
two different, they may be toodifferent. You know, there are a
(22:40):
lot of good folks on on TV. Most of the folks on CNBC I
feel very comfortable with. I dowatch it every morning as I'm getting ready
to go to work for the day. But you know, there Fox Uh
has some good folks. I meanthere there are a lot of different outlets
(23:04):
that are Bloomberg another one, uhthat are that are doing well. But
if you made me pick you know, my absolute favorite, you know,
golly, I, I just there'sjust too many good ones to you know,
to to do that. I dolove the battles on CBN C c
(23:27):
NBC in the morning, uh,between Andrew Becky and and the team there.
Uh, and you know it's uh, it's good entertainment as well as
good information. Okay. Jennifer inNaples, she said, I just inherited
(23:49):
my mother's IRA, which is substantial, and I want to hold on to
it until I retire in another tenyears. How should I invest in?
Well, two things before we talkabout how it should be invested. The
first thing is is did your mompass away before or after her required beginning
(24:15):
date? And what is that?Well, it was either age seventy,
seventy two or now seventy three,So you need to determine whether your mom
was over any of those ages andagain had changed over time. For instance,
(24:37):
for me, it was when Iturned seventy that I had to start
taking money out. For anybody today, it's not until age seventy three.
Why is that important. The reasonthat that is important is if your mom
passed away prior to her required beginningdate, don't have to take any money
(25:00):
out at all during the next tenyears, But at the end of the
tenth year, you would have totake out one hundred percent because it must
now come out over a ten yearperiod of time. So you would probably
be better off investing into a nice, moderate program considering how close you are
(25:22):
to retirement, and then over timewithdraw it in smaller amounts over the next
ten years so that you're able tokeep the income tax down and that you're
not having to pay a big taxif you had to take it one hundred
percent out at the end of theof the tenth year. On the other
hand, if your mom was overher required beginning date and was already withdrawing
(25:45):
money from her IRA, you mustcontinue to take that money out every year.
Now, the interesting twist on allof this is is that although that's
been the case for the last twoor three years, the IRS has has
waived that response have waived that forthe last three years. So it's very
(26:07):
complicated. It's it's not simple it'snot straightforward, so visit with a financial
professional that can help you sort throughthe different options that are there and then
determine your own tolerance for risk andthen set up a portfolio that's proportionate of
that to set you up for aretirement for yourself. Right. This show
(26:32):
always goes by so fast. Forthose who are listening to podcasts or radio,
give them your phone number in yourwebsite where they can reach you.
Sure, Steve. Anybody can reachout to us with a simple question,
or take advantage of our complimentary onehour consultation by calling seven to two seven
(26:55):
four four one nine zero two totwo. That's seven two seven four four
one nine zero two two, orsimply go to provis dot com. That's
p R o v I s Edot com, provis dot com. Ray,
(27:15):
we love having you on. Youadd so much to the show,
and we'll see you in a coupleof weeks. I'll look forward to it,
Steve. In the meantime, besafe and be well you too,
Ray, God bless thank you.That's Ray Ferarro, provis Management Group.
He's been with us for over twoyears. Just great, great information.
(27:38):
That's it for us today. We'llbe back again with you next week with
more Askdexperts. Thanks for tuning intoday to the Ask the Experts show on
the W four c Y radio andTalk for TV. Tune in next week
and every week to hear more fromour experts on personal injury, insurance,
(27:59):
air conditioning, estate planning, medicare, and many other topics in the areas
of legal, health, financial,and home improvement. See you next week.
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