Jon Hicks on the erratic market and things that could affect your retirement

CEO John Hicks of J. Hagan Capital discusses what is driving the market to be erratic, how to help your retirement, world news' impact on your money, and the cost of mushrooms...

Episode Transcript

(00:00):
All right, thanks Ton Pablo.A lot of people weighing in, of
course, on Mitch McConnell's situation.And here is Senator John Kennedy, not
to be confused with the Kennedy's ofKate cod This John Kennedy is from Louisiana.
You think Mitch is gonna resign?I think he'll resign right about the
same time that we see Donkey's flat. He just comes through. He's the

(00:25):
quote we've seen in DC these dayswhen mules flat. Don't know what do
he say? Donkey's flat? That'sit. Thank you, Senator John Kennedy.
He's got another one here. Wegotta play this I and you'll love
this too. Oh. I gotJohn Hicks in the studio with me too.
John. Good to see you,Terry. How we doing that financial
adviser and friend of mine here inthe studio. Ian. You're gonna like

(00:48):
this clip from Senator John Kennedy ofLouisiana talking about our senior Senator Mitch McConnell.
I see him as short of thethe Bill Belichick of Poblachick. I
couldn't see Mitch in a hoodie withno sleeves, no, but he is
kind of like Belichick in that hedoesn't give you a lot of information.

(01:10):
That's right, exactly right. We'llget more into that story coming up a
little bit later on John, Goodto see you. Good to see you,
man. I didn't miss a teatime, did I not? Luckily
not today. We have to dothat sometimes we do. Gotta get out.
I'm gonna try to get out tomorrow. I was listening to the weather.
Looks it's gonna be fantastic tomorrow night. We've got U of L football.
They're hosting Murray State. We'll talkwith Josh Hurd, the University of

(01:32):
Louisville athletics director, about an hourfrom now here on the news. I
just wanted you to come by andso we could talk just in general about
the markets. You know, Irun these stories from ABC all the time
about what's happening with inflation, what'sgoing on with interest rates, those types
of things. And this is somethingthat you see because you've got a huge
portfolio of clients that sure that arein the marketplace and know then react to

(01:57):
these types of things. So,first off, what are you seeing in
terms of the repercussions of the inflationlevel where we are? Yeah, I
mean, like, if you seethe market over the past several months,
it's just been all over the place. Sometimes it's fabulously up and other times
it's like today and yesterday, youknow, just getting punched with that Mike
Tyson cross. But it's all becausewe don't know what's going to happen next.

(02:19):
The economy doesn't look great. It'snot terrible either, but inflation is
a big one. Every time Igo to the grocery, I'm amazed that
little can of mushrooms that used tobe fifty nine cents is now two bucks.
You know, we put eating mushroomsin the house tiory, so I
know I'm not getting any vegetation,But I shop two and I go through
the same thing, and I'm like, dude, this is two and a
half three times what it was.It's the truth. And if you think

(02:42):
about it, you know, ourfirm, we just we focus on retirement
and people getting ready for it andretiring, and when you think twenty to
thirty years of wild inflation could kindof derail a lot of us. So
we're just trying to find out whatcan we do, you know, to
be in the right spot, youknow, regardless of market performance. Yeah.
And I know that you advise peopleabout you know, the four oh

(03:02):
one k or wrath or this orthat or whatever, and that's all stuff
that you do individually for clients,but for people that are just listening to
us in general. With inflation atits level, yeah, I already mentioned
interest rates. Sure, what sortof safety valves can you pull right now

(03:23):
to protect yourself as you move closertowards your retirement age. Sure? I
mean, when you're thinking about inflationbeing as high as it is, an
interest rates having come up kind ofa historic rates, one of the best
things we can do is get outof debt. I mean, that's probably
one of the greatest things we canconsider now, you know, work towards
chiseling off that debt. And Iwas talking with a client a couple of
months ago and they were saying,John, we were going to help our

(03:45):
daughter out and get a house,and man, interest rates are getting close
to eight percent, it's twice thepayment it used to be. What can
we do? And that's going tocause I think a little bit of a
ripple effect. At these higher rates, higher inflation, it just makes us
all think a little bit more.But there's all kinds of things we can
do to safeguard ourselves, right,make sure we don't have too much money
under the mattress, earn a nothing, and make certain if we are going
to have our money invested in themarket, which I think is wise in

(04:08):
the long run, just make surethat we only have the amount of money
we can afford to lose for afew years we're getting closer retirement. Maybe
don't put the pedal down quite sohard on that growth factor. There's there's
some things that we can do tosafeguards. I know you're kidding when you
say under the mattress, but you'retalking about money that people may have on
accounts that doesn't has a very lowgrower like some of those Yeah, we've
we've seen. You know, there'sstill some money markets out there that are

(04:30):
paying less than one or two percent, but there's a lot of them out
there that pay better than five percent. You just gotta want to make sure.
You want to dust off those oldstatements, making sure that you know
you're not being had if you will, because you bought something five years,
ten years ago, and you canjust go, well, I'm that's safe.
It happens all the time. Andpeople just they forget. They forgot.
It's like, oh, well,I know it was safe and it'll
be fine, and they're only gettingtwo percent. They could be getting two

(04:51):
and a half times that, Andwhen you think about it, that's a
big amount of you know, that'sa big difference. Get to get two
and a half times the interest paymentthat you're previously getting or that we should
have gotten. So it's you know, those are the simple things we can
do. Just look, just dustoff those statements. Yeah, my older
kids, My older kids are intheir thirties and I bought funds for them
when they were little kids for college. Sure used money, but there's still

(05:13):
some in there. And I'm Ishuddered to think what those the interest rate
is or whatever it is on thosenow because I signed up for those in
the nineties. Absolutely, I meanthere's a lot of things that I've seen
recently. People came in and theyget it four or five years ago.
You know, when when interest ratesand CD rates are paying less than one
percent a year, they're only gettingone on a quarter percent. I mean,
that's that doesn't even keep up witha can of mushrooms anymore. At

(05:35):
Kroger. I mean, that's whatwe've got to worry about. Right.
You got me worried about the mushrooms? Yeah, how am I ever gonna
I'm sure there's another pizza again.I know that there's other can vegetables that
may not go up as high,but it seems to me mushrooms had my
focus this week just because it blewmy mind. I mean, come on,
mushrooms. I don't like asparaguside ofa can either. Well, whatever

(05:57):
that goes for these days, I'mnot going to find out person. We
had art of chokes last night.Those are good, Oh artichokes from a
jar? Fine? What was theJerusalem art of chokes? Is that what
I had once? Those things arefabulous? Those are good, fantastic.
People can hear you weekend mornings hereon the Electric Radio, can't they?
I believe they can. Not doingthe Electric slide though, I promise you
that no. If people are hearingyour voice, that's John Hicks and he's

(06:20):
on weekend mornings here on news radioeight forty whas. And that's what you
guys talk about. You've got agreat crew. Who else is on that
show with you? We have aHeather Branch. We've had Jennifer Perry on
that show. We get a lotof folks on there to help us.
But Heather has done a great job. You know, she's basically the MC
kind of lead the direction. Shekind of has her finger on the pulse

(06:42):
of you know, what's going onthere? What are people worried about?
What are they thinking about when itcomes to hey, can I can I
hang it up one day? CanI quit working? Can I can I
get out of this cubicle? Orcan I find something I'd be more passionate
about doing. You know, ifpeople have new grand kids, can I
go hang out with them for afew months a year instead of you know,
coming in and punching the time clockagain. Right, But I've heard

(07:02):
you guys on that show. Youtalk about global events too, and how
they impact the markets here in America. The absolutely China is doing this,
the Ukraine war is that this iswhatever, and how those factors do play
into mom and Dad's four oh oneK and surprisingly enough and mom and pop
businesses here in Louisville, Kentucky andin the Tristate area. It's it's amazing

(07:24):
how those little influences when they usedto say, yeah, the world's globalized.
You know, we're all in onebig playground now. It kind of
works that way when it comes tofinances. A couple of things that happened
in Ukraine, a couple sixty toseventy billion dollars that the US prints to
send over there, is probably gonnahave a tax effect on us, all
of us hard working Americans that arehopefully going to save enough money to not

(07:46):
have to work one day. Orshould we be nervous about an impending strike
with the United Auto Workers You're talkingabout all the major American companies. The
writer strike is one thing, becausethat's just about entertainment TV show, stage
shows, but actual manu factoring whenthat comes to a slowdown or a full
stoppage, that does have an effectthrough the markets without question. When you

(08:07):
think that right now, we alreadyhave kind of a labor shortage in the
United States, and then on topof that, you take a basically a
very highly skilled subset of people andyou say, hey, we're not getting
treated right. We feel like weneed better wages, better pensions, better
healthcare, whatever it is we allwant to fight for. If they stopped
doing that all of a sudden,we can have basically a screeching halt to

(08:28):
a portion in the economy. Andit's been tough already after COVID, you
know, to try to get vehiclesand have them all that have all the
safety features and all the stuff theyused to have. I mean, I
know, my wife and I werewaiting on a couple of parts for her
car. It took nine months.I mean, luckily it wasn't like,
you know, the brake pedal orsomething like that. Luckily it wasn't quite
that significance. Still drive at honey, but it was like the auto button

(08:50):
for like to close the trunk,you know, you push the button,
trunk closes itself. And we didn'thave that for nine months. And by
the way, that's manual labor.I don't care what anyone says, going
back there and having to physically touchyour trunk to close it. I mean,
that's what America has come to.Yeah, we just don't want a
stoppage of production because it affects somany other tributary businesses. Yeah, and
people don't realize, you know thatone sale is one piece of the puzzle,

(09:13):
but how it's financed with the tiresthat go on those things. All
the part suppliers, everything that happens. It's amazing. There was a study
that I saw done that every dollarspin in America touches about twenty seven other
individual pieces. Of course, that'snot including the government. The government may
touch it five or six times inbetween every time it touches those other hands.
But that's amazing. One dollar hasa trickle down, if you will,

(09:35):
almost twenty seven different touches. That'sa that's a pretty impressive number.
We'll keep our eyeballs on that storybecause that negotiation goes until one week from
today, I believe, so Septemberfourteen, so hopefully they'll get all that
stuff resolve. John Hick's always greattalking to you, very great being here
man. People can find you onlineat Jayhagencapitol dot com absolutely and of course
on here on Saturday Sunday mornings oneight forty WHA. Good to have you

(09:58):
back, brood See anyway, stayon the golf course sometime. We need
to do that. You can't beatme too bad, I'm not going to
be friendly. Then the game facecomes on. My game face, you
get the Jeff brom game face.Fire shoots out of my eyes. That's
impressive. I can see that let'sgo. That's John Hicks. Find him
at Jayhagen capitol dot com.