Episode Transcript
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Speaker 1 (00:05):
Tonight, Well, look at this inflation numbers continuing to move
in the right direction.
Speaker 2 (00:10):
We've got the retirement account.
Speaker 1 (00:12):
Strategy that could save you thousands and much more. You're
listening to Simply Money, presented by all Worth Financial Ammi
Wagner along with Steve Sprovac, who is in for Steve Ruby. Gosh, Steve,
you know each day, at least currently the past few
days have brought in new economic data pointing to the
fact that likely the Federal Reserve will be looking at
(00:33):
making the first interest rate cut that we have seen
in a really long time next month.
Speaker 3 (00:38):
Yeah, the so called experts were pretty much they nailed it. Yeah,
you know, they said, yeah, we'll probably come in about
zero point two percent inflation for the month of July.
That translates out to two nine percent. And guess what,
that's exactly what happened.
Speaker 2 (00:52):
And they haven't been nailing it a whole lot.
Speaker 3 (00:54):
We don't like surprises.
Speaker 2 (00:56):
Yes, it's nice when they nail it. We're like, oh,
this was exactly what we were expecting.
Speaker 1 (01:00):
In fact, so nice. Markets like that. They kind of
shrug it off, But you.
Speaker 3 (01:03):
Know, there's somebody out there listening that that's saying to themselves. Yeah,
but really it feels like it's a lot worse. I
was talking to my wife this morning. I said, you know,
give me an example, because you know, I'm not allowed
to go shopping shopping, and she was at Costco and
she said, well, I'd put back the tuna fish because
the five or six pack or whatever it is, it's
(01:24):
usually eleven bucks, is fifteen bucks. And that's not two
point nine percent, you know, So real consumers out there
know that this is not an easy time. And the
fact that inflation is only two point nine percent, which
by the way, that's the lowest it's been since March
of twenty one. So this is a good thing, but
it means prices are still going up, just not as
(01:45):
quickly as they were a year ago.
Speaker 2 (01:47):
Well, and to your.
Speaker 1 (01:48):
Point about Costco and the tuna fish, what the Fed
really looks at is core inflation because they know those
food prices are super volatile. They know energy prices are
super viotile. So when they strip that out, the yearly
rate of core inflation went down from three point three
percent to three point two percent.
Speaker 2 (02:04):
Now, listen, keep in mind, the.
Speaker 1 (02:06):
Federal Reserve's goal here is two percent, but they also
have been saying for a really long time, the closer
we get to two percent.
Speaker 2 (02:13):
And keep in mind, we were up to nine plus.
Speaker 3 (02:15):
Percent, oh no kidding, Yeah, that was scary.
Speaker 1 (02:18):
Really hurts. They said, the closer we get to this
two percent range, the harder it's, the more we're going
to have to claw at it and fight at it.
And so I think what happened was a few months
ago they said, Okay, we've maybe done all the raising
of interest rates that we need to do to get
inflation down, but we're not going to start cutting rates
immediately because.
Speaker 2 (02:36):
We're just going to sit on this for a while.
Speaker 1 (02:38):
We know there's a lag time when we do these
interst rates increases.
Speaker 2 (02:42):
We want to make sure.
Speaker 1 (02:43):
That it kind of fully works its way through the economy,
and then we're going to reassess where we are. And
I think when you look at data like this, it
really points to the fact that they've done what they
needed to do.
Speaker 3 (02:53):
Yeah, and then keep in mind the Federal Reserve, they
set our they set the primary interest rates that the
banks and everybody else follows. They're meeting in almost exactly
a month, so everybody's talking about what are they going
to do and a lot of experts were saying, oh,
they were going to start reducing rates back in May,
and I don't know where they come up with that.
Speaker 2 (03:15):
They are even saying seven rate cuts this year.
Speaker 3 (03:17):
Exactly, exactly. Yeah, But you know what if if you are,
I can't imagine going out home shopping right now and
looking at seven and a half percent mortgages went when
two years ago, three years ago they were you know,
two and a half, two and three quarters percent. I
mean that's hundreds and hundreds of dollars a month more.
That's not getting a more house, it's just more money
(03:38):
going to the bank. So you know, any prospect of
reducing interest rates is a good thing. You know, So
when they get together a month from now, today's numbers
just gives the Federal Reserve that much more ammunition to say, yeah,
maybe things are starting to slow down and we can
start bringing interest rates down. Don't expect a one percent.
(04:00):
I mean we're talking maybe a quarter of a percent,
maybe a half a percent, more likely a quarter of
a percent, but it's a start.
Speaker 1 (04:08):
Well, and I'm glad you touched on how much they
will lower rates, because you know, it's like the Federal
Reserve while they have this huge job, they don't have
a lot of tools to use in order to do it.
And their number one go to tool is the lever
for interest rates, right, And ideally they just want to
bump at a tiny little bit, you know, bump at
a little bit in one direction or a little bit
(04:29):
in the other direction and wait and see. So I
think if you were to, you know, put Jerome Pwell
his feet to the fire, the head of the tear
of the Fed, and say, ideally, when you start to
cut rates, what would it be, He'd say a quarter
point a quarter point and then let's see.
Speaker 2 (04:43):
But I think now the.
Speaker 1 (04:43):
Question is are there enough cracks in the economy, particularly
when you look at the labor markets, to say or
to make the case for, actually, we're not going to
lower interest rates by a quarter of a point. We
might looking we might be looking at half a point,
which it just means you're kind of throttling things more
and the potential fallout becomes a little bit greater.
Speaker 3 (05:06):
Well, he doesn't want to make the same mistake Paul
Volker made in the early eighties. And what happened back
in the early eighties, and that's what inflation really got
out of hand, and the Fed said, you know, after
they raised rates up to twelve, thirteen, fourteen percent, I mean,
you think this is bad? Just think about I had
an eleven percent mortgage for my first mortgage. A lot
(05:28):
of people listening they had higher mortgages, and you know,
the Federal Reserve was under a lot of pressure back
then get rates back down to normal, the economies grinding
to a halt. And they did. They dropped rates were
very quickly, sooner than expected. And guess what, inflation heated
right back up again and they had to do it
all over again. It was it. They called it a
(05:48):
double dip, double dip recession. Yeah, and the only thing
I like double dip is ice cream?
Speaker 2 (05:54):
Can they give me a double dip?
Speaker 3 (05:55):
Why am I thinking about ice cream? That's not yet
but anyway, but no, that's that's definitely in Jerome Powell's
memory bank, and he doesn't want to be the next
guy pointed out as saying, oh, yeah, that Palell guy
that used to run the Federal Reserve. He screwed up
and drop rates too soon and put us back in
you know, two to three recessions. So he's being cautious.
(06:16):
And I think he's nailing it so far, so we'll
see what happens next month. But you know, there's a
lot of reasons that we can justify. Finally, maybe they're
gonna start bringing interest rates back down. Don't expect them
to get where they were, but at least off of
the recent highs.
Speaker 1 (06:33):
You're listening to simply money presented by all Worth Financial
and Memi Wagner along with Steve Spovac. As we digest
these latest inflation numbers, which look like we're heading in
the right direction here in the Federal Reserve would then
be en course to start making intro straight cuts. You
know what I think is so terrible and difficult about
what the Federal Reserve is trying to do.
Speaker 3 (06:51):
Right.
Speaker 1 (06:51):
They met earlier this month, a couple of weeks ago,
and they kept rates.
Speaker 2 (06:55):
Where they they didn't do anything.
Speaker 1 (06:58):
They said, we're going to hold off until it but
they kind of were really clear about the fact that
they're really seriously looking at cutting rates next month. Then
the next day or two days later, and those couple
of days afterwards, new numbers came out about the labor market,
and then all of a sudden, everyone was like, oh,
the Fed terrible Monday morning quarterbacking, right, they should have
cut rates this month, you know, too late for that.
Speaker 2 (07:20):
But I do think we're we are really likely looking
at some cutstoff.
Speaker 3 (07:24):
But they don't have to be ultra reactionary too. I mean,
markets would love that, because markets thrive on you know,
I'm going to buy or I'm going to sell based
on what I think is going to happen. And they're
always making predictions. But you know, here's some of the
things that I when I dove into these numbers a
little bit. Rents. Rents were rising very rapidly. Home prices
have gone stratospheric compared to a few years ago. And
(07:47):
you know, if you're if you're a landlord, if you
own a house that you're running out, well there's a
you know, one year leases, there's some lag time between
how long you with the prices increasing, that you can
change the rate on the rents that you charge on
the properties. You know, rents are rising more slowly. I
talked about cars yesterday. You know that that's my little
indicator of you know, how the economy is doing exactly.
(08:10):
You used yeah, burn's gas, I'm interested, but you used cars.
I mean they're damn twenty six percent from their highs.
Remember how nuts it got, Yes, I.
Speaker 2 (08:20):
Mean during that time.
Speaker 3 (08:22):
Yeah, these are good signs. These are really good signs.
And then if you're going to take a look at
the market, there's an analyst from Wells Fargo named Chris Harlin,
and he thinks, what we're going through right now is
just like what green Span of the Federal Reserve was
dealing with the nineteen ninety five And when green Span
started dropping rates, S and P five hundred earnings profits
(08:45):
were up twelve percent over the next year, and the
S and P five hundred went up forty percent over
the next year and a half. So you know, I'm
always an optimist, but when the Fed starts loosening interest
rates up a little bit, there's good reason to be optimistic.
Speaker 2 (09:01):
Which is funny that you bring out that.
Speaker 1 (09:02):
And I actually saw that same research about nineteen ninety five,
because you'll also read headlines right now talking about the
sky is falling and we could be looking at the
worst recession that we've seen in decades and that kind
of thing, and I think, gosh, that makes investors so
nauseous when you read headlines like that, and It's like
this could go either way. Yes, the recession is coming,
one is always coming. Could be next week, next month,
(09:24):
two years from now, nobody really knows. But all we
can look at is the data that's in front of us,
and none of us.
Speaker 2 (09:31):
Really has control over that. So let's talk about what
we can well, yeah, what.
Speaker 3 (09:34):
You can do. Just like you know, it was when
interest rates were rising rapidly. You don't want to lock
in rates and then next month have a CD issued
or offered by your bank one percent higher than what
you just locked into. So if you were smart, you
kept your money in a money market that does adjust
pretty much constantly. But now we're getting at the point
where we may be looking at the highest rates we're
(09:56):
going to see in a while. So if you've got money,
like we've always talked about in an emergency fund and
a portion of that, you're okay locking up for a
period of time. I mean, you could buy CDs that
are six months, but you can also buy five year
CDs and guess once some of the credit unions around
around here, they're offering in the high three percent range,
(10:17):
three point seven three point eight percent on a five
year CD. Now, if you need access to that money
in less than five years. Uh ah, I mean this
is just for a portion of your money. But even
six months, we're looking at four four and a quarter percent.
Now I'm talking about credit unions. You pull up some
local bank websites. On some local bank websites, I have
seen six month CDs point zero one percent.
Speaker 2 (10:39):
So don't just welcome back to where we started.
Speaker 3 (10:41):
Yeah, so don't walk into your bank and say, give
me a six month cd I heard the rates are high.
Why don't you do spend five minutes, do a Google search,
and decide, Okay, here's a place down the street that's
offering way better than the bank I've been dealing with
for twenty years, and let me go in and talk
to them.
Speaker 1 (10:56):
Yeah. It's funny because we were kind of on the
front end of this when the federal is started to
raise interest rates. You're paying more on your credit cards,
you're paying more for mortgage. Yet you were like, well,
where's that money at my bank? Where's that money and
that high yield savings account?
Speaker 2 (11:11):
You had to shop around.
Speaker 1 (11:12):
I mean some banks really never adopted, but in a
lot of cases you're able to get four point seventy
five five five and a half percent, right if you
found the right situation on even just a high heald
savings account, well, even just the whisper of those interest
rates starting to come down, you see banks starting.
Speaker 2 (11:28):
To lower those rates.
Speaker 1 (11:28):
So now is really the time to do your research
and lock those rates in.
Speaker 2 (11:33):
That makes a lot of sense.
Speaker 3 (11:34):
No, no question. And you know we talk about bonds also, well,
you know what, if you're in a bond mutual fund
and interest rates drop, that bond may do that bond
fund may do well also, So you know, just do
some research once you start getting in the bonds. They're
a little bit confusing. Most people sit down with the
professional that knows what they're talking about, a fiduciary who's
working in your best interest, not in his best interest,
(11:57):
and sort through do you want to make any changes
in your four one or your other accounts?
Speaker 2 (12:01):
Here's the all Worth advice.
Speaker 1 (12:04):
Call your qualified financial professional right while while you can
now in order to determine whether looking into rates on
bonds makes sense for your portfolio.
Speaker 2 (12:13):
Shop around.
Speaker 1 (12:14):
Coming up next, why holding certain financial advisors to a
fiduciary standard.
Speaker 2 (12:18):
May not really happen. We'll get into that.
Speaker 1 (12:20):
You're listening to Simply Money and presented by all Worth Financial.
Here in fifty five krs. The talk station.
Speaker 2 (12:30):
You're listening to.
Speaker 1 (12:31):
Simply Money, presented by all Worth Financial. I mean you.
Speaker 2 (12:33):
Wagner along with Steve Sprovak.
Speaker 1 (12:34):
If you can't catch our show every night, you don't
have to miss a thing we talk about. We've got
a daily podcast for you. Just search Simply Money. It's
right there on the iHeart app or wherever you get
your podcasts. Coming up at six forty three, the retirement
account move that could save you thousands of dollars. Will
tell you what that is and maybe whether it could
make sense for you. Okay, you know different countries. We
(12:56):
talk about this global economy, but the situation is different
in each country and they have different economies and challenges.
One challenge, though, that seems to be resonating not only
here in the US, but in China and other larger countries,
is the fact that a larger number of people are retiring. Yes,
we are into the workforce and looking at you right now,
(13:19):
you're picking and I don't care. You're trying to retire
and we keep bringing you back in your studio, but yeah,
you're retiring. All your friends are retiring. Everyone on your
baseball team is retiring. All of your people are retiring.
World the same thing is happening in China. A larger
number of people are retiring than coming into the system.
And I think the interesting thing too about the Chinese
(13:41):
economy is that actually retire at younger ages there than
we consider kind of the norm here.
Speaker 3 (13:48):
Yeah, how about fifty female blue collar workers can retire
with pension in China at fifty And that may be
in the past tense because China's got some challenges there.
China is talking about raising retirement ages across the board
because they're running out of people to pay for it.
I mean this sounds familiar, doesn't it. I mean we
(14:09):
talk about social security in this country and how when
it was first started there were forty workers paying for
each retiree and now it's about two and a half
workers paying for each retiree. China and a lot of
people are saying, China's going to invade Taiwan. China's going
to do this, China's going to do that. China's got
some problems. Yea, They've got a lot of problems. They
had that one child policy for a couple of decades. Okay,
(14:31):
so demographically they're in collapse. I mean, they have very
few workers paying for a lot of retirees. Deglobalization, I
don't want to get in. I mean that could be
a topic all by itself. But one thing that came
out of COVID is wait a second. All of our
ibewprofen comes from China. All of our this comes from China,
and so every country in the world is slowly working
(14:52):
towards not depending on China for very important things. Their
real estate market is collapsing. They've been over reporting gross
domestic product. It's hard to get a number, but the
consensus is by five percent. Well, they just announced five
percent GDP growth, so in other words, maybe it's really zero.
You know, there's a lot going on with China and
(15:15):
now they're trying to figure out how to pay for
all of these retirees. And you want to hack off
some old people, just tell them, oh, no, you're getting
all excited about retiring next year, you're going to have
to wait five more years.
Speaker 1 (15:28):
Well, and I think that's the problem with what's happening
over there as well, is when is this going to start?
And what does this mean? And what age is it
going to look like. So they kind of announced, hey,
we're going to change things, but they didn't give anyone specifics.
That's not the kind of thing that like that would
drive me insane.
Speaker 3 (15:42):
Yeah, exactly told.
Speaker 1 (15:43):
Me you're going to mess with my social security, but
you're not going to say whether it's going.
Speaker 2 (15:45):
To impact me or make just a little further Yeah. Yeah,
so kind of a mess over there.
Speaker 1 (15:52):
But I think that this particular issue that they're dealing
with is one that we can really understand. As we've
talked many times on the show about the Social Security
Trust Fund running ji around twenty thirty four. Does that
mean you're not going to get any benefit. No, it doesn't,
but it means that maybe you get seventy five to
eighty percent of your promised benefit. Why is that Well,
because we have so many more people retiring than paying
into the system.
Speaker 3 (16:13):
Unless they make changes.
Speaker 1 (16:14):
Unless they make changes exactly, and if they do, unlike China.
Speaker 2 (16:18):
They better be clear about what's going to happen.
Speaker 1 (16:21):
And I'm also going to tell you, because we've become
very familiar with what happens in Washington, they're going to
wait to the eleventh hour to do it, right, off.
Speaker 3 (16:28):
Fifty ninth minute, fifty ninth second. Yes, yeah, exactly, because
politically that's the third rail. They don't want to touch it. Yep.
Speaker 1 (16:37):
And speaking of Washington, a new labored apartment rule that
we've talked about on the show. It raises the legal
bar for if you are sitting down with an investment advisor,
what kind of standard that they are held to. This
is something that we have been applotting, but now it
looks like it may not go through.
Speaker 3 (16:54):
Why is this an argument? I mean, working in the
investor's best interest? Isn't that a good thing?
Speaker 1 (16:59):
You know?
Speaker 3 (16:59):
And for some reason, and it's pretty much the big
brokerages out there, they're saying, No, we don't want to
we don't want to have to do that. No, that's hard,
that's hard. It's not hard. You know, I've played both side.
Speaker 2 (17:10):
Also, I don't think it's just hard. It's less profitable
for some people.
Speaker 3 (17:14):
Well that's the biggest follow the money, right, I mean
that's always always the case with something like this.
Speaker 2 (17:22):
Machines.
Speaker 3 (17:22):
Yeah, and it looks like, man, this is this is
going to court and a labor department, the labor department
may turn overturn this and and it's really the labor
department wants to I'm sorry, it's the courts may overturn it.
The labor department is looking at cleaning up the rollover business.
Why follow the money, that's where the big money is.
(17:43):
If somebody retires from a company and they've got a million,
million and a half two million dollars in their four
oh one k, there's a whole lot of people I
want to get their hands on it. And that's because
the commission products out there now. I retired as a fiduciary, okay,
And a fiduciary, by definition, is where you work in
the best interest of the client. If there's a ten
(18:03):
percent commission being paid on a product, but that's not
the best investment for that customer, you are held to
a legal not just ethical, legal bar to there's no
reason to discuss that with the client. If there's something better,
if that works for them, Yeah, but a lot of
people don't feel that way well.
Speaker 1 (18:18):
And I also think as an investor, you're probably scratching
your head right now. If this is the first time
you've heard of this. You can't imagine going into your
doctor and you tell them what's going on with you.
And they give you advice, and then you have to
ask the follow up question of is that really the
best thing for me? Or you go to your attorney
and you ask them a question and they give you advice,
and then you have to follow up with is that
really the best thing for me? That's why this fiduciary rule,
(18:41):
which really this is a kind of fiduciary light. We
saw another version of this several years ago that was overturned.
This is a less stringent policy. But can you imagine
sitting down on a table with someone who's giving you
financial advice, telling you you need to buy this annuity,
you need to buy this product, you need to invest
in these mutuals. Okay, they're suitable. You can make the
(19:03):
argument for this isn't This isn't the worst thing that
I can that I can tell this investor, But is
it the best thing?
Speaker 2 (19:09):
No, it's not that either.
Speaker 3 (19:10):
Well, and the numbers are crazy. I mean seven percent commission.
I've seen ten percent commission. So put this in numbers.
If you've got a million dollars in your four oh
one K and there's somebody sitting down with you that
seems to make sense, you like what he or she
is telling you, and they stand to make on a
million dollars between seventy and one hundred thousand dollars when
(19:31):
you sign that paper, is that really your best interest?
So don't be afraid. Hey, if I sign this paper,
how much money do you make? And if they have
an AWD, just keep at it, or say if I
move this investment elsewhere in the next year because it
wasn't really what I thought. What's it going to cost me? Yeah,
these are legitimateant questions.
Speaker 1 (19:50):
Ask the questions. Here's the all Worth advice. Always ask
how an advisor is going to make his or her
money before you hand yours. Over coming up next, we're
firing up to Simply Money Scam Track to make sure
you're aware of the new ways criminals are trying to
rip you off. And also you're college students. You're listening
to Simply Money presented by all Worth Financial. Here in
fifty five KRC the talk station.
Speaker 2 (20:15):
You're listening to Simply Money presented by all Worth Financial.
I'm me Wagner.
Speaker 1 (20:20):
On a personal note, I am gearing up for my daughter,
my baby, heading off to college, the first one to
leave the nest in the next couple of weeks and
now I understand not only do I have to worry
about her being outside of my home, I have to
worry about her being the target of scams because there
are scams directed of course at college age students. So
(20:43):
joining us tonight to tell us all and specifically me
and my daughter as well, what we need to be
watching out for. Of course, is our good friend from
the since I Better Business Bureau, josale erlek Gosh, it's
like everyone, everyone has to watch out. But now these
kids are leaving home for the very first time and
they're being targeted by scammers.
Speaker 4 (21:03):
Okay, so you and your daughter sit down and listen
to this again and again and again.
Speaker 2 (21:08):
We will if you.
Speaker 4 (21:10):
We know that you have your daughter leaving, but anybody
who is going off to college, if you have a
family member going off to college or a friend going
off to college. Here are some financial scams that we've
been seeing a lot of recently. The first is phishing emails.
We've talked about phishing emails a gazillion times. You need
(21:31):
to be alert for official looking emails or texts coming
from the financial department or the burster or the dean
of your department asking for your log in information to
your bank account, or your social media account, or any
account that you might have, whatever the reason that they
give you, your log in information is private and shouldn't
(21:53):
be shared with anyone for any reason. Sharing it is
just an open invitation to scammers to use that personal
information that might be stored on that site for whatever
purposes they want, including ID theft, financial theft, maybe even blackmail.
Speaker 1 (22:13):
Well, you know, Jille, as I'm hearing this, I'm thinking,
you know you and I like, we've done these segments
many times. I think many of us have adults, like
we've been targeted by these scams before. But these kids
are in such a new place. I mean, they're not
used to having financial aid, they're not used to people
reaching out them necessarily directly, and so I can see
where they are just a fantastic place for scammers to
(22:34):
focus on because it's a whole new world for them.
Speaker 4 (22:38):
It is a new world and they don't know how
to respond as an adult necessarily and to question these things.
If someone in authority says do X, they assume that
doing X is the right thing to do. They've got
to take a step back and we as parents, as
friends as responsible adults need to keep saying. Oh okay, guys,
(23:01):
stop and think. You do not have to do everything
a person in authority tells you to do. You need
to protect yourself. So another scam that we are seeing
involves freak excuse me, fake credit card offers. Now, we
all know that new graduates are often getting solicited by
(23:21):
credit card companies, but not all credit card offers are legitimate,
as I'm sure you tell your clients time and time
against me. As tempting as these officers offers might be,
some of them are just an attempt to steal your
personal information. Check out any alleged credit card companies at
BBB dot org before you hand over your personal information. Now,
(23:46):
another big one we're seeing is rental scams. Yeah, we
have to chuckle at that. Housing is so expensive and
finding affordable housing isn't easy, so it's hard for a younger,
especially not to jump on an opportunity to rent to
rent an apartment close to campus, especially if it advertises
(24:08):
affordable rent. Now, just remember that scammers often post pictures
that they've stolen from other online apartment rental postings. Always, always,
always tour the apartment in person on the inside, not
just from the outside, to be sure that the apartment
is really available for rent before you send your money
(24:28):
off that you might never see again.
Speaker 1 (24:31):
You know, I love that you're bringing this up, Joe Seal,
because also things have changed since since I was in college.
Speaker 2 (24:37):
I mean, it used to be we didn't even start.
Speaker 1 (24:38):
Looking for if we were freshmen, where we were going
to stay for the next year until like the spring.
And now there's this like frenzy at least where my
my daughter's going to school, where it starts in the
fall for the year before, and there's this kind of
scarcity that the kids feel like we need to get it,
we need to get it now. And so I think
in the midst of okay, we feel like we got
to jump on the first good thing that we see.
(25:00):
We don't understand that if it looks or sounds too
good to be true, it probably is quite yet, and
we don't understand that we need to ask questions and
see these things and in person and have our parents
look at this as well. And so I just think
it could be a recipe for disaster.
Speaker 4 (25:16):
Well, you bring out the really good point there at
this point in their lives, a lot of people are
trying to separate from their parents. But in this transition phase,
it's really important to include your parents or trusted family
members in any of these decisions. Because you and I
have been around the block a few times. We know
where the skeletons in the closet are. If you will,
(25:38):
young people don't have that life experience yet, so hopefully
they will say, Mom, Dad, this is what I'm thinking.
What do you think? Really try and instill that in
them at this very critical point in their lives.
Speaker 2 (25:51):
And parents ask questions.
Speaker 1 (25:52):
If your kids aren't bringing it up to you right,
ask questions, are you seeing credit card offers? Are you
thinking about where you're going to stay next year?
Speaker 2 (25:59):
What are your thoughts about where you want to live?
And what the rent situation is? Ask the questions, Oh,
that is such good advice.
Speaker 4 (26:07):
Amy. One more scam that we are seeing is a
scam that targets college students regarding test preparation. The scammers
are pretending to be from companies that help you pass exams,
but once you start communicating with them, the scammers use
those messages to blackmail you into sending them money out
of fear that you'll be expelled for cheating. So yeah,
(26:31):
that just is beyond me. How are they getting students
to put themselves in a position that they could be
accused of cheating? So just be so careful. Tell your
students to be careful if they question anything, if something
just doesn't feel right, talk to someone they trust.
Speaker 2 (26:52):
And what about recent college grads.
Speaker 4 (26:56):
Oh, so many scams in this arena as well. The
first one is scammers impersonating recruiters. We've seen them impersonate
Wall Street firms, major tech companies, national retailers, and it's
usually on social media, though not always. The recruiter may
say they went to the same college as you did,
and they name drop faculty, They talk about maybe campus
(27:19):
landmarks or even memories of their days back at good
old and scret school name here, or they might name
drop a dean or a professor, saying that person recommended
the student as a top candidate. After a number of
virtual interviews, you get a very lucrative job offer and
also the HR paperwork asking for personal information. These alleged
(27:44):
recruiters are identity these and they're using publicly available information
the dean's name, the well known professors, school traditions, all
that stuff that they do at they're finding where you
went to school on your social media accounts. You know,
they do their homework. You know, Susie went to University
of Cincinnati. Here's a list of all the main people
(28:06):
that you see. So that's how that goes. Another scam
we're seeing on social media is appointment setting jobs. They
claim you can make big money working from home. Yeah, yeah, yeah.
Some red flags for this dream job is first they're
going to focus on recruiting other people more than actual
(28:27):
appointment setting, or they're going to promise a very high income.
Real appointment setting jobs usually involve scheduling calls for sales teams.
It's a normal job with a modest income, and they
might also require upfront payment for training. Legitimate employers will
never ask you to pay to get a job. So
(28:50):
both of these job scams may also have a fake
check element. And we've talked about fake checks many many times.
If a recruiter sends a check as a signing bonus
or a work from home stipend, then tells you to
send some of that money back to them or to
another new hire, it's a scam.
Speaker 3 (29:09):
You know.
Speaker 1 (29:09):
In Paris, I just want to once again remind you
we're hardened by these things, right, We've been targeted before.
We know our children are new, they're new to college,
they're new to you know, getting these jobs in looking
for recruiters and trying to find the perfect landing for
the first place. And so Josille Erlik from the Cincinnati
Better Business Fewer, just great reminders, have these conversations make
(29:31):
sure that they have their guard up and that they
do not become victims of scammers. Right out of the bat,
you're listening to Simply Money presented by all Worth Financial.
Speaker 2 (29:38):
Here in fifty five KRC the talk station.
Speaker 1 (29:45):
You're listening to Simply Money presented by all Worth Financial.
I mean you, Wagner, along with steve'sprovac. Do you have
a financial question you want us to answer? You just
need a little help with There's a red button you
can click on while you're listening to the show. It's
right there on the iHeart app. Record your question. It's
coming straight to us straight ahead.
Speaker 2 (30:01):
In case you need.
Speaker 1 (30:02):
This reminder, We've got to break down all the reasons
why debt is an absolute killer when it comes to
your money. You know, see, if I think often when
the markets are volatile, and let's face that, we've seen
a little volatility, a little touch. Yes, for so many people,
it's like you're looking at this, you feel like you
don't have any control, and it's almost like I need
to do something. I need to do something, I need
(30:23):
to switch something around, you need to buy something or
sell something or whatever it is. And we would say
most of the time you just got to swallow those
feelings and stay put right, just keep things the way
that they were before. But sometimes there might be something
that you can do, or you at least could consider doing,
and it might be more beneficial to you when markets
are downe.
Speaker 3 (30:43):
Yeah, And I want to talk a little bit about
roth conversions roth can By the way, this is a
good time to talk about it, because we always talk
about roth conversions in November and December, when most people
feel like I got too much going on, I can't
even think about this. Well, you know, this is a
good subject to tackle now because you've got time to
(31:03):
sort through it. Talk to your accountant during a time
when they're generally not that busy. Wouldn't it be great
if you could take money out of your IRA that
you normally show his income and pay tax on but
not have to pay tax on it. That's what a
roth is. I mean, that's what a roth is. Well,
wait a second, I got all this money in an IRA,
I'm gonna have to pay tax, and you're telling me
I can move it into a wroth and not pay
(31:26):
tax when I pull it out. Yes, I'm telling you that.
But as you might have guessed, there's a big catch
and that back catches when you move money from a
traditional ira to a roth ira. The amount you move
is a taxable event. Then the government's saying, well, we
won't tax you later, but we're going to tax you
now on the amount you can convert. And that may
(31:46):
or may not work out for you. But if you're
ever gonna move that money, well, if your values are down, okay,
that means you can move the same number of shares
and have less amount of dollars being transferred over and
you come out on top.
Speaker 1 (32:02):
One major caveat to think about when you're thinking about
a roth conversion is how much makes sense to move?
Speaker 3 (32:07):
Oh, you got to be careful.
Speaker 1 (32:09):
You have to pay such close attention to which tax
bracket you're in. I've seen people do this d I
wires doing it on their own. Oh, I like the
idea of a wroth conversion. You know that wroth money
gives me more flexibility and retirement. I completely agree with that.
But they convert too much, and then it bumps them
up into the next tax bracket. Because that money that
you're converting to the irs, it looks like money that
(32:31):
you made that year. It doesn't matter that you already
had it and been sitting there.
Speaker 3 (32:34):
Oh, you're not gonna be happy wing and get your
ten ninety nine if you don't pay attention. Yeah exactly. Yeah.
So here here, here's the way it works. If you're
married and filing jointly, you go from paying twelve percent
tax on your income that year to twenty two percent.
That's a big old jump. I'm going to work this
out in my head. That's about a ten percent, ten
percent more.
Speaker 2 (32:53):
It's really just math. You got there.
Speaker 3 (32:55):
So you go from twelve percent to twenty two percent
tax rate at ninety four thousand, three hundred dollars in
twenty twenty four adjusted gross. That's after deductions. Okay, So
in other words, if you show one hundred thousand dollars
of income that excess above ninety four to three you're
being tax to twenty two. You don't want to do that,
so we call it filling up the tax bracket. This
(33:16):
is something you have to talk to your accountant first.
But hey, if you made sixty thousand dollars in adjusted growth,
are expecting to make that this year? Well, you know,
I can make the argument of move the other thirty
four three hundred dollars from a traditional irate to wroth
irate to take you up to ninety four to three
and you're only paying twelve percent tax on that, and
(33:37):
then that money comes out tax free later on.
Speaker 1 (33:40):
Yeah, and all that growth, right, that grows tax free.
Speaker 3 (33:43):
Yeah.
Speaker 1 (33:43):
I think Roth conversions can make a ton of sense.
You just have to be really careful with them. And
there's also something called the backdoor wroth and this is
where there are income limits on what you can put
into a traditional ira. And so I've had many people
come to me and say, well, I make more than
that off you know, uh, and so I can't put
money into a traditional ira. Okay, Well you can backdoor
(34:07):
that money into into a row.
Speaker 2 (34:09):
So you put it in a traditional.
Speaker 3 (34:11):
Ira, you can't deduct it. That's a non deductible iray.
You can make a million dollars in doo a non
deductible yes.
Speaker 1 (34:16):
Yes, yes, yes, yes, So then you put that money
and then you transfer that into a ROTH. It just
it's kind of this like little mechanical move that you
can make. You open one account, you move it into
another account, but suddenly that's called a backdoor I rate. Again,
what you're going to have to pay the money those
taxes and that at that point that you move it
into that account. But if you're careful and you do
it right, it can give you a lot more fund.
Speaker 3 (34:37):
And talk to your accounts before you do any of this.
Speaker 2 (34:39):
Yeah, it can be.
Speaker 1 (34:40):
It can be incredibly beneficial. We're talking about thousands of dollars.
You just got to make sure you do it in
the right way. Here's the all Worth advice. We don't
recommend changing your portfolio every time you feel panic about
the markets. We will always, though, recommend looking for ways
to save on taxes of course, legally. Coming up next,
the four letter word that can wreck your money your
(35:01):
retirement plan.
Speaker 2 (35:02):
We're going to talk about debt.
Speaker 1 (35:03):
You're listening to Simply Money presented by all Worth Financial
here on fifty five KRC, the talk station you're listening
to simply money presented by all Worth Financial. I mean,
wag you're along with Steve Sprovac bancreed dot com just
came out with its twenty twenty four credit card debt report.
Speaker 2 (35:22):
And well it's not a really pretty picture. Let me
just say that.
Speaker 1 (35:26):
And I also want to start by saying that you
and I called this.
Speaker 3 (35:30):
Oh that was an easy call. Yeah.
Speaker 1 (35:31):
During the pandemic, when we couldn't spend money on anything
and the government was putting money into our accounts in
the form of stimulus money, we saw the US savings rate.
Speaker 2 (35:40):
The average person was.
Speaker 1 (35:41):
Saving thirty percent of your take home and we said
this will never last.
Speaker 3 (35:46):
Yeah, we went out on a limb with that prerection.
Speaker 1 (35:49):
Well, no longer are people not saving it that thirty percent.
I mean I've seen it down. It's just like three
point six percent. Now we're taking on debt in record level.
Speaker 3 (35:59):
Well, they're a great organization. Yeah, and they did a
survey and roughly half the people they surveyed said, oh, yeah,
I carry a balance on my credit card, which tells
me the other half are probably lying because there are
very few people that pay off their credit cards. Obviously,
our listeners pay them off every month, because that's the
only smart thing to do with a credit card, pay
(36:22):
it off every month. If you buy something that you
can't pay off every month at the end of the month,
don't buy it. Don't buy it. Yeah.
Speaker 1 (36:29):
I have always said what you want to do if
you have credit cards, and I'm not against credit cards
any way.
Speaker 2 (36:34):
Shape see the worst.
Speaker 1 (36:36):
Customer of that credit card company, and that means you
pay those bills on time and in full every month.
They're not making a bit on you and interest and
they're not making anything on fees or extra charges. Right,
that's where you want to fall. Now we're seeing at
least half of people admitting to the fact that that's.
Speaker 2 (36:53):
Not where they are.
Speaker 1 (36:54):
And also four out of ten people said I've got
more debt on credit cards and then I have an
actual emergency savings set aside.
Speaker 2 (37:03):
Well that's a recipe for disaster.
Speaker 3 (37:05):
Yeah, they can't see each other out. You don't have
savings if you've got that much in debt. Here's and
you know, we're not here to beat people up over
the head by any stretch. I pay off my credit
cards every month and so I don't really care what
the interest rate is because I don't pay it. One
of my credit cards just announced it was either thirty
one or thirty three percent. I mean, go to the
(37:25):
mob they got better rates. Yeah yeah, I didn't really
say that, did I. But but but anyway, there, but
it's getting ridiculous. So don't fall into their trap. And
if you have gotten yourself, and I was there early
in my marriage, I mean forty years ago, I let
things get away from me, Well here's what you gotta do.
(37:46):
You got to literally lock up the card. You just
don't use it, literally lock it up and decide how
am I gonna pay these cards or this card down
as soon as possible. It's no fun. It's like losing weight.
Nothing happened fast. Every month you wish you had more money,
but instead you're paying down your credit card. But it's
the only way you get ahead. And once you get
(38:07):
yourself into that mindset, you're going to be a new person,
both financially and mentally.
Speaker 1 (38:12):
You mentioned mindset, I think that's the key here. You
have to have the mindset of enough is enough. I'm
not going to pay this credit card money company any
more money in the form of interest, and so you
have to shift and it might mean that you cut
back on spending other places in order to spend this down.
Speaker 2 (38:27):
You have to figure out to change something right, whether.
Speaker 1 (38:29):
The snowball of paying off the least amount of debt
or the highest interest rate. The avalanche method makes the
most sense for you, but you got to get it
going and then once you tackle it, you make sure
you wipe it off and you never go back there again.
Speaker 2 (38:42):
Thanks for listening. We hope you're going to tune in tomorrow.
Speaker 1 (38:44):
We're talking about the best ways to protect your money.
You've been listening to Simply Money, presented by all Worth
Financial here in fifty five KRC, the talk station
Tonight, Well, look at this inflation numbers continuing to move
in the right direction.
Speaker 2 (00:10):
We've got the retirement account.
Speaker 1 (00:12):
Strategy that could save you thousands and much more. You're
listening to Simply Money, presented by all Worth Financial Ammi
Wagner along with Steve Sprovac, who is in for Steve Ruby. Gosh, Steve,
you know each day, at least currently the past few
days have brought in new economic data pointing to the
fact that likely the Federal Reserve will be looking at
(00:33):
making the first interest rate cut that we have seen
in a really long time next month.
Speaker 3 (00:38):
Yeah, the so called experts were pretty much they nailed it. Yeah,
you know, they said, yeah, we'll probably come in about
zero point two percent inflation for the month of July.
That translates out to two nine percent. And guess what,
that's exactly what happened.
Speaker 2 (00:52):
And they haven't been nailing it a whole lot.
Speaker 3 (00:54):
We don't like surprises.
Speaker 2 (00:56):
Yes, it's nice when they nail it. We're like, oh,
this was exactly what we were expecting.
Speaker 1 (01:00):
In fact, so nice. Markets like that. They kind of
shrug it off, But you.
Speaker 3 (01:03):
Know, there's somebody out there listening that that's saying to themselves. Yeah,
but really it feels like it's a lot worse. I
was talking to my wife this morning. I said, you know,
give me an example, because you know, I'm not allowed
to go shopping shopping, and she was at Costco and
she said, well, I'd put back the tuna fish because
the five or six pack or whatever it is, it's
(01:24):
usually eleven bucks, is fifteen bucks. And that's not two
point nine percent, you know, So real consumers out there
know that this is not an easy time. And the
fact that inflation is only two point nine percent, which
by the way, that's the lowest it's been since March
of twenty one. So this is a good thing, but
it means prices are still going up, just not as
(01:45):
quickly as they were a year ago.
Speaker 2 (01:47):
Well, and to your.
Speaker 1 (01:48):
Point about Costco and the tuna fish, what the Fed
really looks at is core inflation because they know those
food prices are super volatile. They know energy prices are
super viotile. So when they strip that out, the yearly
rate of core inflation went down from three point three
percent to three point two percent.
Speaker 2 (02:04):
Now, listen, keep in mind, the.
Speaker 1 (02:06):
Federal Reserve's goal here is two percent, but they also
have been saying for a really long time, the closer
we get to two percent.
Speaker 2 (02:13):
And keep in mind, we were up to nine plus.
Speaker 3 (02:15):
Percent, oh no kidding, Yeah, that was scary.
Speaker 1 (02:18):
Really hurts. They said, the closer we get to this
two percent range, the harder it's, the more we're going
to have to claw at it and fight at it.
And so I think what happened was a few months
ago they said, Okay, we've maybe done all the raising
of interest rates that we need to do to get
inflation down, but we're not going to start cutting rates
immediately because.
Speaker 2 (02:36):
We're just going to sit on this for a while.
Speaker 1 (02:38):
We know there's a lag time when we do these
interst rates increases.
Speaker 2 (02:42):
We want to make sure.
Speaker 1 (02:43):
That it kind of fully works its way through the economy,
and then we're going to reassess where we are. And
I think when you look at data like this, it
really points to the fact that they've done what they
needed to do.
Speaker 3 (02:53):
Yeah, and then keep in mind the Federal Reserve, they
set our they set the primary interest rates that the
banks and everybody else follows. They're meeting in almost exactly
a month, so everybody's talking about what are they going
to do and a lot of experts were saying, oh,
they were going to start reducing rates back in May,
and I don't know where they come up with that.
Speaker 2 (03:15):
They are even saying seven rate cuts this year.
Speaker 3 (03:17):
Exactly, exactly. Yeah, But you know what if if you are,
I can't imagine going out home shopping right now and
looking at seven and a half percent mortgages went when
two years ago, three years ago they were you know,
two and a half, two and three quarters percent. I
mean that's hundreds and hundreds of dollars a month more.
That's not getting a more house, it's just more money
(03:38):
going to the bank. So you know, any prospect of
reducing interest rates is a good thing. You know, So
when they get together a month from now, today's numbers
just gives the Federal Reserve that much more ammunition to say, yeah,
maybe things are starting to slow down and we can
start bringing interest rates down. Don't expect a one percent.
(04:00):
I mean we're talking maybe a quarter of a percent,
maybe a half a percent, more likely a quarter of
a percent, but it's a start.
Speaker 1 (04:08):
Well, and I'm glad you touched on how much they
will lower rates, because you know, it's like the Federal
Reserve while they have this huge job, they don't have
a lot of tools to use in order to do it.
And their number one go to tool is the lever
for interest rates, right, And ideally they just want to
bump at a tiny little bit, you know, bump at
a little bit in one direction or a little bit
(04:29):
in the other direction and wait and see. So I
think if you were to, you know, put Jerome Pwell
his feet to the fire, the head of the tear
of the Fed, and say, ideally, when you start to
cut rates, what would it be, He'd say a quarter
point a quarter point and then let's see.
Speaker 2 (04:43):
But I think now the.
Speaker 1 (04:43):
Question is are there enough cracks in the economy, particularly
when you look at the labor markets, to say or
to make the case for, actually, we're not going to
lower interest rates by a quarter of a point. We
might looking we might be looking at half a point,
which it just means you're kind of throttling things more
and the potential fallout becomes a little bit greater.
Speaker 3 (05:06):
Well, he doesn't want to make the same mistake Paul
Volker made in the early eighties. And what happened back
in the early eighties, and that's what inflation really got
out of hand, and the Fed said, you know, after
they raised rates up to twelve, thirteen, fourteen percent, I mean,
you think this is bad? Just think about I had
an eleven percent mortgage for my first mortgage. A lot
(05:28):
of people listening they had higher mortgages, and you know,
the Federal Reserve was under a lot of pressure back
then get rates back down to normal, the economies grinding
to a halt. And they did. They dropped rates were
very quickly, sooner than expected. And guess what, inflation heated
right back up again and they had to do it
all over again. It was it. They called it a
(05:48):
double dip, double dip recession. Yeah, and the only thing
I like double dip is ice cream?
Speaker 2 (05:54):
Can they give me a double dip?
Speaker 3 (05:55):
Why am I thinking about ice cream? That's not yet
but anyway, but no, that's that's definitely in Jerome Powell's
memory bank, and he doesn't want to be the next
guy pointed out as saying, oh, yeah, that Palell guy
that used to run the Federal Reserve. He screwed up
and drop rates too soon and put us back in
you know, two to three recessions. So he's being cautious.
(06:16):
And I think he's nailing it so far, so we'll
see what happens next month. But you know, there's a
lot of reasons that we can justify. Finally, maybe they're
gonna start bringing interest rates back down. Don't expect them
to get where they were, but at least off of
the recent highs.
Speaker 1 (06:33):
You're listening to simply money presented by all Worth Financial
and Memi Wagner along with Steve Spovac. As we digest
these latest inflation numbers, which look like we're heading in
the right direction here in the Federal Reserve would then
be en course to start making intro straight cuts. You
know what I think is so terrible and difficult about
what the Federal Reserve is trying to do.
Speaker 3 (06:51):
Right.
Speaker 1 (06:51):
They met earlier this month, a couple of weeks ago,
and they kept rates.
Speaker 2 (06:55):
Where they they didn't do anything.
Speaker 1 (06:58):
They said, we're going to hold off until it but
they kind of were really clear about the fact that
they're really seriously looking at cutting rates next month. Then
the next day or two days later, and those couple
of days afterwards, new numbers came out about the labor market,
and then all of a sudden, everyone was like, oh,
the Fed terrible Monday morning quarterbacking, right, they should have
cut rates this month, you know, too late for that.
Speaker 2 (07:20):
But I do think we're we are really likely looking
at some cutstoff.
Speaker 3 (07:24):
But they don't have to be ultra reactionary too. I mean,
markets would love that, because markets thrive on you know,
I'm going to buy or I'm going to sell based
on what I think is going to happen. And they're
always making predictions. But you know, here's some of the
things that I when I dove into these numbers a
little bit. Rents. Rents were rising very rapidly. Home prices
have gone stratospheric compared to a few years ago. And
(07:47):
you know, if you're if you're a landlord, if you
own a house that you're running out, well there's a
you know, one year leases, there's some lag time between
how long you with the prices increasing, that you can
change the rate on the rents that you charge on
the properties. You know, rents are rising more slowly. I
talked about cars yesterday. You know that that's my little
indicator of you know, how the economy is doing exactly.
(08:10):
You used yeah, burn's gas, I'm interested, but you used cars.
I mean they're damn twenty six percent from their highs.
Remember how nuts it got, Yes, I.
Speaker 2 (08:20):
Mean during that time.
Speaker 3 (08:22):
Yeah, these are good signs. These are really good signs.
And then if you're going to take a look at
the market, there's an analyst from Wells Fargo named Chris Harlin,
and he thinks, what we're going through right now is
just like what green Span of the Federal Reserve was
dealing with the nineteen ninety five And when green Span
started dropping rates, S and P five hundred earnings profits
(08:45):
were up twelve percent over the next year, and the
S and P five hundred went up forty percent over
the next year and a half. So you know, I'm
always an optimist, but when the Fed starts loosening interest
rates up a little bit, there's good reason to be optimistic.
Speaker 2 (09:01):
Which is funny that you bring out that.
Speaker 1 (09:02):
And I actually saw that same research about nineteen ninety five,
because you'll also read headlines right now talking about the
sky is falling and we could be looking at the
worst recession that we've seen in decades and that kind
of thing, and I think, gosh, that makes investors so
nauseous when you read headlines like that, and It's like
this could go either way. Yes, the recession is coming,
one is always coming. Could be next week, next month,
(09:24):
two years from now, nobody really knows. But all we
can look at is the data that's in front of us,
and none of us.
Speaker 2 (09:31):
Really has control over that. So let's talk about what
we can well, yeah, what.
Speaker 3 (09:34):
You can do. Just like you know, it was when
interest rates were rising rapidly. You don't want to lock
in rates and then next month have a CD issued
or offered by your bank one percent higher than what
you just locked into. So if you were smart, you
kept your money in a money market that does adjust
pretty much constantly. But now we're getting at the point
where we may be looking at the highest rates we're
(09:56):
going to see in a while. So if you've got money,
like we've always talked about in an emergency fund and
a portion of that, you're okay locking up for a
period of time. I mean, you could buy CDs that
are six months, but you can also buy five year
CDs and guess once some of the credit unions around
around here, they're offering in the high three percent range,
(10:17):
three point seven three point eight percent on a five
year CD. Now, if you need access to that money
in less than five years. Uh ah, I mean this
is just for a portion of your money. But even
six months, we're looking at four four and a quarter percent.
Now I'm talking about credit unions. You pull up some
local bank websites. On some local bank websites, I have
seen six month CDs point zero one percent.
Speaker 2 (10:39):
So don't just welcome back to where we started.
Speaker 3 (10:41):
Yeah, so don't walk into your bank and say, give
me a six month cd I heard the rates are high.
Why don't you do spend five minutes, do a Google search,
and decide, Okay, here's a place down the street that's
offering way better than the bank I've been dealing with
for twenty years, and let me go in and talk
to them.
Speaker 1 (10:56):
Yeah. It's funny because we were kind of on the
front end of this when the federal is started to
raise interest rates. You're paying more on your credit cards,
you're paying more for mortgage. Yet you were like, well,
where's that money at my bank? Where's that money and
that high yield savings account?
Speaker 2 (11:11):
You had to shop around.
Speaker 1 (11:12):
I mean some banks really never adopted, but in a
lot of cases you're able to get four point seventy
five five five and a half percent, right if you
found the right situation on even just a high heald
savings account, well, even just the whisper of those interest
rates starting to come down, you see banks starting.
Speaker 2 (11:28):
To lower those rates.
Speaker 1 (11:28):
So now is really the time to do your research
and lock those rates in.
Speaker 2 (11:33):
That makes a lot of sense.
Speaker 3 (11:34):
No, no question. And you know we talk about bonds also, well,
you know what, if you're in a bond mutual fund
and interest rates drop, that bond may do that bond
fund may do well also, So you know, just do
some research once you start getting in the bonds. They're
a little bit confusing. Most people sit down with the
professional that knows what they're talking about, a fiduciary who's
working in your best interest, not in his best interest,
(11:57):
and sort through do you want to make any changes
in your four one or your other accounts?
Speaker 2 (12:01):
Here's the all Worth advice.
Speaker 1 (12:04):
Call your qualified financial professional right while while you can
now in order to determine whether looking into rates on
bonds makes sense for your portfolio.
Speaker 2 (12:13):
Shop around.
Speaker 1 (12:14):
Coming up next, why holding certain financial advisors to a
fiduciary standard.
Speaker 2 (12:18):
May not really happen. We'll get into that.
Speaker 1 (12:20):
You're listening to Simply Money and presented by all Worth Financial.
Here in fifty five krs. The talk station.
Speaker 2 (12:30):
You're listening to.
Speaker 1 (12:31):
Simply Money, presented by all Worth Financial. I mean you.
Speaker 2 (12:33):
Wagner along with Steve Sprovak.
Speaker 1 (12:34):
If you can't catch our show every night, you don't
have to miss a thing we talk about. We've got
a daily podcast for you. Just search Simply Money. It's
right there on the iHeart app or wherever you get
your podcasts. Coming up at six forty three, the retirement
account move that could save you thousands of dollars. Will
tell you what that is and maybe whether it could
make sense for you. Okay, you know different countries. We
(12:56):
talk about this global economy, but the situation is different
in each country and they have different economies and challenges.
One challenge, though, that seems to be resonating not only
here in the US, but in China and other larger countries,
is the fact that a larger number of people are retiring. Yes,
we are into the workforce and looking at you right now,
(13:19):
you're picking and I don't care. You're trying to retire
and we keep bringing you back in your studio, but yeah,
you're retiring. All your friends are retiring. Everyone on your
baseball team is retiring. All of your people are retiring.
World the same thing is happening in China. A larger
number of people are retiring than coming into the system.
And I think the interesting thing too about the Chinese
(13:41):
economy is that actually retire at younger ages there than
we consider kind of the norm here.
Speaker 3 (13:48):
Yeah, how about fifty female blue collar workers can retire
with pension in China at fifty And that may be
in the past tense because China's got some challenges there.
China is talking about raising retirement ages across the board
because they're running out of people to pay for it.
I mean this sounds familiar, doesn't it. I mean we
(14:09):
talk about social security in this country and how when
it was first started there were forty workers paying for
each retiree and now it's about two and a half
workers paying for each retiree. China and a lot of
people are saying, China's going to invade Taiwan. China's going
to do this, China's going to do that. China's got
some problems. Yea, They've got a lot of problems. They
had that one child policy for a couple of decades. Okay,
(14:31):
so demographically they're in collapse. I mean, they have very
few workers paying for a lot of retirees. Deglobalization, I
don't want to get in. I mean that could be
a topic all by itself. But one thing that came
out of COVID is wait a second. All of our
ibewprofen comes from China. All of our this comes from China,
and so every country in the world is slowly working
(14:52):
towards not depending on China for very important things. Their
real estate market is collapsing. They've been over reporting gross
domestic product. It's hard to get a number, but the
consensus is by five percent. Well, they just announced five
percent GDP growth, so in other words, maybe it's really zero.
You know, there's a lot going on with China and
(15:15):
now they're trying to figure out how to pay for
all of these retirees. And you want to hack off
some old people, just tell them, oh, no, you're getting
all excited about retiring next year, you're going to have
to wait five more years.
Speaker 1 (15:28):
Well, and I think that's the problem with what's happening
over there as well, is when is this going to start?
And what does this mean? And what age is it
going to look like. So they kind of announced, hey,
we're going to change things, but they didn't give anyone specifics.
That's not the kind of thing that like that would
drive me insane.
Speaker 3 (15:42):
Yeah, exactly told.
Speaker 1 (15:43):
Me you're going to mess with my social security, but
you're not going to say whether it's going.
Speaker 2 (15:45):
To impact me or make just a little further Yeah. Yeah,
so kind of a mess over there.
Speaker 1 (15:52):
But I think that this particular issue that they're dealing
with is one that we can really understand. As we've
talked many times on the show about the Social Security
Trust Fund running ji around twenty thirty four. Does that
mean you're not going to get any benefit. No, it doesn't,
but it means that maybe you get seventy five to
eighty percent of your promised benefit. Why is that Well,
because we have so many more people retiring than paying
into the system.
Speaker 3 (16:13):
Unless they make changes.
Speaker 1 (16:14):
Unless they make changes exactly, and if they do, unlike China.
Speaker 2 (16:18):
They better be clear about what's going to happen.
Speaker 1 (16:21):
And I'm also going to tell you, because we've become
very familiar with what happens in Washington, they're going to
wait to the eleventh hour to do it, right, off.
Speaker 3 (16:28):
Fifty ninth minute, fifty ninth second. Yes, yeah, exactly, because
politically that's the third rail. They don't want to touch it. Yep.
Speaker 1 (16:37):
And speaking of Washington, a new labored apartment rule that
we've talked about on the show. It raises the legal
bar for if you are sitting down with an investment advisor,
what kind of standard that they are held to. This
is something that we have been applotting, but now it
looks like it may not go through.
Speaker 3 (16:54):
Why is this an argument? I mean, working in the
investor's best interest? Isn't that a good thing?
Speaker 1 (16:59):
You know?
Speaker 3 (16:59):
And for some reason, and it's pretty much the big
brokerages out there, they're saying, No, we don't want to
we don't want to have to do that. No, that's hard,
that's hard. It's not hard. You know, I've played both side.
Speaker 2 (17:10):
Also, I don't think it's just hard. It's less profitable
for some people.
Speaker 3 (17:14):
Well that's the biggest follow the money, right, I mean
that's always always the case with something like this.
Speaker 2 (17:22):
Machines.
Speaker 3 (17:22):
Yeah, and it looks like, man, this is this is
going to court and a labor department, the labor department
may turn overturn this and and it's really the labor
department wants to I'm sorry, it's the courts may overturn it.
The labor department is looking at cleaning up the rollover business.
Why follow the money, that's where the big money is.
(17:43):
If somebody retires from a company and they've got a million,
million and a half two million dollars in their four
oh one k, there's a whole lot of people I
want to get their hands on it. And that's because
the commission products out there now. I retired as a fiduciary, okay,
And a fiduciary, by definition, is where you work in
the best interest of the client. If there's a ten
(18:03):
percent commission being paid on a product, but that's not
the best investment for that customer, you are held to
a legal not just ethical, legal bar to there's no
reason to discuss that with the client. If there's something better,
if that works for them, Yeah, but a lot of
people don't feel that way well.
Speaker 1 (18:18):
And I also think as an investor, you're probably scratching
your head right now. If this is the first time
you've heard of this. You can't imagine going into your
doctor and you tell them what's going on with you.
And they give you advice, and then you have to
ask the follow up question of is that really the
best thing for me? Or you go to your attorney
and you ask them a question and they give you advice,
and then you have to follow up with is that
really the best thing for me? That's why this fiduciary rule,
(18:41):
which really this is a kind of fiduciary light. We
saw another version of this several years ago that was overturned.
This is a less stringent policy. But can you imagine
sitting down on a table with someone who's giving you
financial advice, telling you you need to buy this annuity,
you need to buy this product, you need to invest
in these mutuals. Okay, they're suitable. You can make the
(19:03):
argument for this isn't This isn't the worst thing that
I can that I can tell this investor, But is
it the best thing?
Speaker 2 (19:09):
No, it's not that either.
Speaker 3 (19:10):
Well, and the numbers are crazy. I mean seven percent commission.
I've seen ten percent commission. So put this in numbers.
If you've got a million dollars in your four oh
one K and there's somebody sitting down with you that
seems to make sense, you like what he or she
is telling you, and they stand to make on a
million dollars between seventy and one hundred thousand dollars when
(19:31):
you sign that paper, is that really your best interest?
So don't be afraid. Hey, if I sign this paper,
how much money do you make? And if they have
an AWD, just keep at it, or say if I
move this investment elsewhere in the next year because it
wasn't really what I thought. What's it going to cost me? Yeah,
these are legitimateant questions.
Speaker 1 (19:50):
Ask the questions. Here's the all Worth advice. Always ask
how an advisor is going to make his or her
money before you hand yours. Over coming up next, we're
firing up to Simply Money Scam Track to make sure
you're aware of the new ways criminals are trying to
rip you off. And also you're college students. You're listening
to Simply Money presented by all Worth Financial. Here in
fifty five KRC the talk station.
Speaker 2 (20:15):
You're listening to Simply Money presented by all Worth Financial.
I'm me Wagner.
Speaker 1 (20:20):
On a personal note, I am gearing up for my daughter,
my baby, heading off to college, the first one to
leave the nest in the next couple of weeks and
now I understand not only do I have to worry
about her being outside of my home, I have to
worry about her being the target of scams because there
are scams directed of course at college age students. So
(20:43):
joining us tonight to tell us all and specifically me
and my daughter as well, what we need to be
watching out for. Of course, is our good friend from
the since I Better Business Bureau, josale erlek Gosh, it's
like everyone, everyone has to watch out. But now these
kids are leaving home for the very first time and
they're being targeted by scammers.
Speaker 4 (21:03):
Okay, so you and your daughter sit down and listen
to this again and again and again.
Speaker 2 (21:08):
We will if you.
Speaker 4 (21:10):
We know that you have your daughter leaving, but anybody
who is going off to college, if you have a
family member going off to college or a friend going
off to college. Here are some financial scams that we've
been seeing a lot of recently. The first is phishing emails.
We've talked about phishing emails a gazillion times. You need
(21:31):
to be alert for official looking emails or texts coming
from the financial department or the burster or the dean
of your department asking for your log in information to
your bank account, or your social media account, or any
account that you might have, whatever the reason that they
give you, your log in information is private and shouldn't
(21:53):
be shared with anyone for any reason. Sharing it is
just an open invitation to scammers to use that personal
information that might be stored on that site for whatever
purposes they want, including ID theft, financial theft, maybe even blackmail.
Speaker 1 (22:13):
Well, you know, Jille, as I'm hearing this, I'm thinking,
you know you and I like, we've done these segments
many times. I think many of us have adults, like
we've been targeted by these scams before. But these kids
are in such a new place. I mean, they're not
used to having financial aid, they're not used to people
reaching out them necessarily directly, and so I can see
where they are just a fantastic place for scammers to
(22:34):
focus on because it's a whole new world for them.
Speaker 4 (22:38):
It is a new world and they don't know how
to respond as an adult necessarily and to question these things.
If someone in authority says do X, they assume that
doing X is the right thing to do. They've got
to take a step back and we as parents, as
friends as responsible adults need to keep saying. Oh okay, guys,
(23:01):
stop and think. You do not have to do everything
a person in authority tells you to do. You need
to protect yourself. So another scam that we are seeing
involves freak excuse me, fake credit card offers. Now, we
all know that new graduates are often getting solicited by
(23:21):
credit card companies, but not all credit card offers are legitimate,
as I'm sure you tell your clients time and time
against me. As tempting as these officers offers might be,
some of them are just an attempt to steal your
personal information. Check out any alleged credit card companies at
BBB dot org before you hand over your personal information. Now,
(23:46):
another big one we're seeing is rental scams. Yeah, we
have to chuckle at that. Housing is so expensive and
finding affordable housing isn't easy, so it's hard for a younger,
especially not to jump on an opportunity to rent to
rent an apartment close to campus, especially if it advertises
(24:08):
affordable rent. Now, just remember that scammers often post pictures
that they've stolen from other online apartment rental postings. Always, always,
always tour the apartment in person on the inside, not
just from the outside, to be sure that the apartment
is really available for rent before you send your money
(24:28):
off that you might never see again.
Speaker 1 (24:31):
You know, I love that you're bringing this up, Joe Seal,
because also things have changed since since I was in college.
Speaker 2 (24:37):
I mean, it used to be we didn't even start.
Speaker 1 (24:38):
Looking for if we were freshmen, where we were going
to stay for the next year until like the spring.
And now there's this like frenzy at least where my
my daughter's going to school, where it starts in the
fall for the year before, and there's this kind of
scarcity that the kids feel like we need to get it,
we need to get it now. And so I think
in the midst of okay, we feel like we got
to jump on the first good thing that we see.
(25:00):
We don't understand that if it looks or sounds too
good to be true, it probably is quite yet, and
we don't understand that we need to ask questions and
see these things and in person and have our parents
look at this as well. And so I just think
it could be a recipe for disaster.
Speaker 4 (25:16):
Well, you bring out the really good point there at
this point in their lives, a lot of people are
trying to separate from their parents. But in this transition phase,
it's really important to include your parents or trusted family
members in any of these decisions. Because you and I
have been around the block a few times. We know
where the skeletons in the closet are. If you will,
(25:38):
young people don't have that life experience yet, so hopefully
they will say, Mom, Dad, this is what I'm thinking.
What do you think? Really try and instill that in
them at this very critical point in their lives.
Speaker 2 (25:51):
And parents ask questions.
Speaker 1 (25:52):
If your kids aren't bringing it up to you right,
ask questions, are you seeing credit card offers? Are you
thinking about where you're going to stay next year?
Speaker 2 (25:59):
What are your thoughts about where you want to live?
And what the rent situation is? Ask the questions, Oh,
that is such good advice.
Speaker 4 (26:07):
Amy. One more scam that we are seeing is a
scam that targets college students regarding test preparation. The scammers
are pretending to be from companies that help you pass exams,
but once you start communicating with them, the scammers use
those messages to blackmail you into sending them money out
of fear that you'll be expelled for cheating. So yeah,
(26:31):
that just is beyond me. How are they getting students
to put themselves in a position that they could be
accused of cheating? So just be so careful. Tell your
students to be careful if they question anything, if something
just doesn't feel right, talk to someone they trust.
Speaker 2 (26:52):
And what about recent college grads.
Speaker 4 (26:56):
Oh, so many scams in this arena as well. The
first one is scammers impersonating recruiters. We've seen them impersonate
Wall Street firms, major tech companies, national retailers, and it's
usually on social media, though not always. The recruiter may
say they went to the same college as you did,
and they name drop faculty, They talk about maybe campus
(27:19):
landmarks or even memories of their days back at good
old and scret school name here, or they might name
drop a dean or a professor, saying that person recommended
the student as a top candidate. After a number of
virtual interviews, you get a very lucrative job offer and
also the HR paperwork asking for personal information. These alleged
(27:44):
recruiters are identity these and they're using publicly available information
the dean's name, the well known professors, school traditions, all
that stuff that they do at they're finding where you
went to school on your social media accounts. You know,
they do their homework. You know, Susie went to University
of Cincinnati. Here's a list of all the main people
(28:06):
that you see. So that's how that goes. Another scam
we're seeing on social media is appointment setting jobs. They
claim you can make big money working from home. Yeah, yeah, yeah.
Some red flags for this dream job is first they're
going to focus on recruiting other people more than actual
(28:27):
appointment setting, or they're going to promise a very high income.
Real appointment setting jobs usually involve scheduling calls for sales teams.
It's a normal job with a modest income, and they
might also require upfront payment for training. Legitimate employers will
never ask you to pay to get a job. So
(28:50):
both of these job scams may also have a fake
check element. And we've talked about fake checks many many times.
If a recruiter sends a check as a signing bonus
or a work from home stipend, then tells you to
send some of that money back to them or to
another new hire, it's a scam.
Speaker 3 (29:09):
You know.
Speaker 1 (29:09):
In Paris, I just want to once again remind you
we're hardened by these things, right, We've been targeted before.
We know our children are new, they're new to college,
they're new to you know, getting these jobs in looking
for recruiters and trying to find the perfect landing for
the first place. And so Josille Erlik from the Cincinnati
Better Business Fewer, just great reminders, have these conversations make
(29:31):
sure that they have their guard up and that they
do not become victims of scammers. Right out of the bat,
you're listening to Simply Money presented by all Worth Financial.
Speaker 2 (29:38):
Here in fifty five KRC the talk station.
Speaker 1 (29:45):
You're listening to Simply Money presented by all Worth Financial.
I mean you, Wagner, along with steve'sprovac. Do you have
a financial question you want us to answer? You just
need a little help with There's a red button you
can click on while you're listening to the show. It's
right there on the iHeart app. Record your question. It's
coming straight to us straight ahead.
Speaker 2 (30:01):
In case you need.
Speaker 1 (30:02):
This reminder, We've got to break down all the reasons
why debt is an absolute killer when it comes to
your money. You know, see, if I think often when
the markets are volatile, and let's face that, we've seen
a little volatility, a little touch. Yes, for so many people,
it's like you're looking at this, you feel like you
don't have any control, and it's almost like I need
to do something. I need to do something, I need
(30:23):
to switch something around, you need to buy something or
sell something or whatever it is. And we would say
most of the time you just got to swallow those
feelings and stay put right, just keep things the way
that they were before. But sometimes there might be something
that you can do, or you at least could consider doing,
and it might be more beneficial to you when markets
are downe.
Speaker 3 (30:43):
Yeah, And I want to talk a little bit about
roth conversions roth can By the way, this is a
good time to talk about it, because we always talk
about roth conversions in November and December, when most people
feel like I got too much going on, I can't
even think about this. Well, you know, this is a
good subject to tackle now because you've got time to
(31:03):
sort through it. Talk to your accountant during a time
when they're generally not that busy. Wouldn't it be great
if you could take money out of your IRA that
you normally show his income and pay tax on but
not have to pay tax on it. That's what a
roth is. I mean, that's what a roth is. Well,
wait a second, I got all this money in an IRA,
I'm gonna have to pay tax, and you're telling me
I can move it into a wroth and not pay
(31:26):
tax when I pull it out. Yes, I'm telling you that.
But as you might have guessed, there's a big catch
and that back catches when you move money from a
traditional ira to a roth ira. The amount you move
is a taxable event. Then the government's saying, well, we
won't tax you later, but we're going to tax you
now on the amount you can convert. And that may
(31:46):
or may not work out for you. But if you're
ever gonna move that money, well, if your values are down, okay,
that means you can move the same number of shares
and have less amount of dollars being transferred over and
you come out on top.
Speaker 1 (32:02):
One major caveat to think about when you're thinking about
a roth conversion is how much makes sense to move?
Speaker 3 (32:07):
Oh, you got to be careful.
Speaker 1 (32:09):
You have to pay such close attention to which tax
bracket you're in. I've seen people do this d I
wires doing it on their own. Oh, I like the
idea of a wroth conversion. You know that wroth money
gives me more flexibility and retirement. I completely agree with that.
But they convert too much, and then it bumps them
up into the next tax bracket. Because that money that
you're converting to the irs, it looks like money that
(32:31):
you made that year. It doesn't matter that you already
had it and been sitting there.
Speaker 3 (32:34):
Oh, you're not gonna be happy wing and get your
ten ninety nine if you don't pay attention. Yeah exactly. Yeah.
So here here, here's the way it works. If you're
married and filing jointly, you go from paying twelve percent
tax on your income that year to twenty two percent.
That's a big old jump. I'm going to work this
out in my head. That's about a ten percent, ten
percent more.
Speaker 2 (32:53):
It's really just math. You got there.
Speaker 3 (32:55):
So you go from twelve percent to twenty two percent
tax rate at ninety four thousand, three hundred dollars in
twenty twenty four adjusted gross. That's after deductions. Okay, So
in other words, if you show one hundred thousand dollars
of income that excess above ninety four to three you're
being tax to twenty two. You don't want to do that,
so we call it filling up the tax bracket. This
(33:16):
is something you have to talk to your accountant first.
But hey, if you made sixty thousand dollars in adjusted growth,
are expecting to make that this year? Well, you know,
I can make the argument of move the other thirty
four three hundred dollars from a traditional irate to wroth
irate to take you up to ninety four to three
and you're only paying twelve percent tax on that, and
(33:37):
then that money comes out tax free later on.
Speaker 1 (33:40):
Yeah, and all that growth, right, that grows tax free.
Speaker 3 (33:43):
Yeah.
Speaker 1 (33:43):
I think Roth conversions can make a ton of sense.
You just have to be really careful with them. And
there's also something called the backdoor wroth and this is
where there are income limits on what you can put
into a traditional ira. And so I've had many people
come to me and say, well, I make more than
that off you know, uh, and so I can't put
money into a traditional ira. Okay, Well you can backdoor
(34:07):
that money into into a row.
Speaker 2 (34:09):
So you put it in a traditional.
Speaker 3 (34:11):
Ira, you can't deduct it. That's a non deductible iray.
You can make a million dollars in doo a non
deductible yes.
Speaker 1 (34:16):
Yes, yes, yes, yes, So then you put that money
and then you transfer that into a ROTH. It just
it's kind of this like little mechanical move that you
can make. You open one account, you move it into
another account, but suddenly that's called a backdoor I rate. Again,
what you're going to have to pay the money those
taxes and that at that point that you move it
into that account. But if you're careful and you do
it right, it can give you a lot more fund.
Speaker 3 (34:37):
And talk to your accounts before you do any of this.
Speaker 2 (34:39):
Yeah, it can be.
Speaker 1 (34:40):
It can be incredibly beneficial. We're talking about thousands of dollars.
You just got to make sure you do it in
the right way. Here's the all Worth advice. We don't
recommend changing your portfolio every time you feel panic about
the markets. We will always, though, recommend looking for ways
to save on taxes of course, legally. Coming up next,
the four letter word that can wreck your money your
(35:01):
retirement plan.
Speaker 2 (35:02):
We're going to talk about debt.
Speaker 1 (35:03):
You're listening to Simply Money presented by all Worth Financial
here on fifty five KRC, the talk station you're listening
to simply money presented by all Worth Financial. I mean,
wag you're along with Steve Sprovac bancreed dot com just
came out with its twenty twenty four credit card debt report.
Speaker 2 (35:22):
And well it's not a really pretty picture. Let me
just say that.
Speaker 1 (35:26):
And I also want to start by saying that you
and I called this.
Speaker 3 (35:30):
Oh that was an easy call. Yeah.
Speaker 1 (35:31):
During the pandemic, when we couldn't spend money on anything
and the government was putting money into our accounts in
the form of stimulus money, we saw the US savings rate.
Speaker 2 (35:40):
The average person was.
Speaker 1 (35:41):
Saving thirty percent of your take home and we said
this will never last.
Speaker 3 (35:46):
Yeah, we went out on a limb with that prerection.
Speaker 1 (35:49):
Well, no longer are people not saving it that thirty percent.
I mean I've seen it down. It's just like three
point six percent. Now we're taking on debt in record level.
Speaker 3 (35:59):
Well, they're a great organization. Yeah, and they did a
survey and roughly half the people they surveyed said, oh, yeah,
I carry a balance on my credit card, which tells
me the other half are probably lying because there are
very few people that pay off their credit cards. Obviously,
our listeners pay them off every month, because that's the
only smart thing to do with a credit card, pay
(36:22):
it off every month. If you buy something that you
can't pay off every month at the end of the month,
don't buy it. Don't buy it. Yeah.
Speaker 1 (36:29):
I have always said what you want to do if
you have credit cards, and I'm not against credit cards
any way.
Speaker 2 (36:34):
Shape see the worst.
Speaker 1 (36:36):
Customer of that credit card company, and that means you
pay those bills on time and in full every month.
They're not making a bit on you and interest and
they're not making anything on fees or extra charges. Right,
that's where you want to fall. Now we're seeing at
least half of people admitting to the fact that that's.
Speaker 2 (36:53):
Not where they are.
Speaker 1 (36:54):
And also four out of ten people said I've got
more debt on credit cards and then I have an
actual emergency savings set aside.
Speaker 2 (37:03):
Well that's a recipe for disaster.
Speaker 3 (37:05):
Yeah, they can't see each other out. You don't have
savings if you've got that much in debt. Here's and
you know, we're not here to beat people up over
the head by any stretch. I pay off my credit
cards every month and so I don't really care what
the interest rate is because I don't pay it. One
of my credit cards just announced it was either thirty
one or thirty three percent. I mean, go to the
(37:25):
mob they got better rates. Yeah yeah, I didn't really
say that, did I. But but but anyway, there, but
it's getting ridiculous. So don't fall into their trap. And
if you have gotten yourself, and I was there early
in my marriage, I mean forty years ago, I let
things get away from me, Well here's what you gotta do.
(37:46):
You got to literally lock up the card. You just
don't use it, literally lock it up and decide how
am I gonna pay these cards or this card down
as soon as possible. It's no fun. It's like losing weight.
Nothing happened fast. Every month you wish you had more money,
but instead you're paying down your credit card. But it's
the only way you get ahead. And once you get
(38:07):
yourself into that mindset, you're going to be a new person,
both financially and mentally.
Speaker 1 (38:12):
You mentioned mindset, I think that's the key here. You
have to have the mindset of enough is enough. I'm
not going to pay this credit card money company any
more money in the form of interest, and so you
have to shift and it might mean that you cut
back on spending other places in order to spend this down.
Speaker 2 (38:27):
You have to figure out to change something right, whether.
Speaker 1 (38:29):
The snowball of paying off the least amount of debt
or the highest interest rate. The avalanche method makes the
most sense for you, but you got to get it
going and then once you tackle it, you make sure
you wipe it off and you never go back there again.
Speaker 2 (38:42):
Thanks for listening. We hope you're going to tune in tomorrow.
Speaker 1 (38:44):
We're talking about the best ways to protect your money.
You've been listening to Simply Money, presented by all Worth
Financial here in fifty five KRC, the talk station
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