Simply Money

Episode Transcript

Speaker 1 (00:04):
Tonight, a deep dive into a mistake come investors made
three weeks ago that they may not recover from. Did
you make this mistake? You're listening to simply money presented
by all Worth Financial? I mean you Wagner along with
Steve sprovac In for Steve Ruby. August fifth. I mean,
I think if people hear that date now, they're like,
I don't know what happened on August I.

Speaker 2 (00:24):
Don't remember yesterday? Are you kidding me?

Speaker 1 (00:26):
So let's remind everyone. You will recall this one pretty quickly.
The S and P five hundred dropped three percent that
day after a pretty negative July jobs report. So even
if you don't remember that date, you probably remember the
feeling of checking the market seeing their down three percent.
Maybe you checked a four one Kay that day wasn't

(00:47):
the best day, and there was a few days there,
a couple days of volatility, And the question is what
did you, as an investor do as the result of that.

Speaker 2 (00:57):
I'm glad we're talking about this because that actually got
my attention. I've been upfront about since retiring the end
of last year, I don't look at my accounts.

Speaker 1 (01:05):
Since trying to retire. We keep making it.

Speaker 2 (01:08):
That's a good point. Yeah. I enjoy this though, And
you know that day it was a typical Wow. Okay,
maybe stocks have had their run and maybe it's time
for a ten to fifteen percent correction. And that gets
anybody thinking, even though I'm I'm making a really good

(01:29):
effort not to pay attention like I did when I
was working to investments, And you know, the market drops
three percent in one day, and if you're a normal person,
you're going to say, is this the beginning of the
big drop? Wow? Am I supposed to do something? And
you know, I hate to keep saying this over and over,

(01:49):
but it bears repeating. You generally don't want to do
anything do Sitting tight is a decision. If you think
it through and say maybe I shouldn't do anything, You've
got to ask yourself if you get caught up in
the negative press of a really rough down day, did
you get out the day before? Because that would have

(02:09):
been the time to get out. If you say, oh, okay,
we're down three percent, I can't afford to lose more.
I don't have time to make it back, You're most
likely going to make a really bad decision.

Speaker 1 (02:23):
Well, August fifth, in the morning of August six. Headlines
were really scary during that time, right, Is this the
beginning of the slide? And is some terrible recession? Is
that the worst thing that we've ever seen? But as
we talk about the terrible decision that you might have
made on that day, we now some research and some
insight into what some investors decided to do. So trading

(02:44):
in four to one case on that day more than
eight times the average daily volume, the highest that we've
seen since March of twenty twenty. What was happening in
March is twenty twenty a global pandemic? Right, So, and
I think for a lot of people, the reason maybe
there was this knee jerk reaction on August fifth is
also because we came out of this period of insane

(03:07):
calm in the markets over a year where we didn't
have more than a one to two percent, you know,
up or down day in the market, So we forgot
what it felt like. And then you get a couple
of days like that on the heels of a jobs report,
and it's like, is this the beginning of the recession?
Is this the beginning of the market's falling and the
sky falling and I think there were some investors who
pulled their money at that point or moved it to

(03:29):
somewhere safe.

Speaker 2 (03:30):
There definitely were. But let me go back to the
jobs report for a second. That was a slight miss, right,
they made the flights. They always make adjustments, the government
Department of Labor, they always make adjustments on Okay, here's
what we thought the number was. But after we audited
the actual results, we were off by usually a little bit.

(03:52):
Three hundred thousand jobs is not being off by a
little bit. I mean, you know, we joke about, well
it's okay for government work. You know, that's a huge miss,
and that caught investors by surprise, because guess what, investors
don't like surprises. But do you do anything about it?
That's the really big question. Yeah, eight times the amount

(04:14):
of trading going on than on a normal day. But
you know what, people had been getting greedy for a
long time. I mean, the average equity position had moved
up to seventy two percent, which is way higher than
the normal average. So in other words, people let their
accounts go. Stocks make more money than bonds over time,
and we were looking at an average account of seventy

(04:37):
two percent when I think most people are comfortable in
that sixty forty. We're in sixty percent stock and so,
oh wow, I wait a second. I was seventy two
percent stock and the market just dropped three percent. I
gotta fix this. I got to do something. And most
of that money we called a flight to safety. It's
just I'm selling my stocks. I'm going into something safe

(05:00):
for either stable value bonds or a money market. And
most of that money went into stable value funds.

Speaker 1 (05:05):
You know, I hate to say I told you so.
Oh I'm kidding. Actually love to say I told you so.

Speaker 2 (05:10):
Who are you kidding?

Speaker 1 (05:11):
We have been talking on this show for a while
before this period of volatility hit of like, hey, build
your boat. You shouldn't have been exposed to seventy two
percent seventy two percent exposure to equities if you had
taken a look and rebalance.

Speaker 2 (05:25):
What's a real risk Perrety, right, And we're.

Speaker 1 (05:27):
Not saying, hey, you rebalanced once a week, but man,
if you slid that much from a sixty forty stock
bond exposure to seventy two percent, you probably should have
looked at that this year and that way. On a
day when the market's down, you don't have that terrible
downside because you don't have more exposure to stocks than
you thought. You're listening to Simply Money, presented by all
Worth Financially Memi Wagner along with Steve Spovac in for

(05:49):
Steve Ruby tonight, as we talk about one day and
the mistakes that you might have made, or we would
hope that you don't because you listen to this show.
Another thing that we talk about often is if you
decide to get out of the markets because of a
really bad day or a really bad period of time,
what we have seen time and time again, historically speaking,
is the good days come on the heels of the

(06:11):
bad day. Yeah, you wouldn't wake up that morning and
check the financial headlines or any headlines and say, oh,
this is going to be a great day in the markets.
Yet for those who got out, there was enough swing
after that and they didn't participate. They move their money
to bonds, they move their money to money market accounts,
that flight to safety, which then doesn't expose them to
the opportunity for growth.

Speaker 2 (06:32):
Yeah, you know, there have been so many studies done
about market timing. I'm not in the business anymore. I'm retired.
So I don't have a horse in the race of
telling people don't do anything, keep your money invested. Okay,
that's an argument when when you have somebody who's an
investment advisor on radio on TV. Well, of course he's

(06:55):
going to say that because he doesn't want your money
to leave the account where he's not earning money on it. Okay,
but the numbers kind of bear this out. If you
had a million dollars, just you've invested successfully twenty years ago,
you put a million dollars in the standard and pores
five hundred, you would have about six million dollars today.

(07:16):
I mean, that's the power of compounding. That's what investments
do for you. If you just missed the ten best days,
and like you said, the ten best days tend to
come off of bad periods, you know, coming bounce off
the bottom. And there's usually no real great news that
causes that to happen. It's just there are no more
sellers left. Everybody's capitulated, you know, follow the money. And

(07:38):
if you just missed the ten best days, you had
three million, still a lot of money. But I don't
know about you, but not having an additional three million
dollars yeah, would mean a little bit to me, A
little bit. Yeah, that's real money. I mean, given the choice, Steve,
would you rather have three million or not have three million?
I'd rather have three million.

Speaker 1 (08:00):
Well, And I think the irony is people take their
money out of the markets. They get into that fetal
position around it because they're worried about losing it. But
to your point, they lost millions if they got out
and missed those ten best days. And you never know
when they're coming, you know. I also think for a
lot of investors and me personally, I used to love

(08:20):
roller coasters when I was a kid. I hate them now.
I feel like I need to go to you are
of a middle age. My ears hurt, my head hurts,
I need a chiropractor. And I think for a lot
of investors it's like, oh, you know what makes me
nervous about the stock market is the roller coaster. But listen,
you're creating a far worse roller coaster ride for yourself, right,

(08:43):
much worse drops by getting in and out of the
market and trying to, you know, to time the market
some days.

Speaker 2 (08:49):
Like this, Okay, you just have to technowledge a couple
of things. Over time, You're more likely to make money
in stocks than a money market, right, Well, lesson number
two is the price of admission. If you're going to
be invested in the stock market, it is a roller coaster.
Don't make it worse. Okay, well, how do you not
make it worse? Well, how about number one? Diversify. We

(09:10):
talk about a sixty forty mix, seventy thirty whatever you're
comfortable with. If you felt like you had to trade
on a three percent drop in stocks because of a
bad labor department report, maybe you weren't invested within your
risk tolerance. I mean, that's the definition. You want to
be comfortable with the mix that you're using. If you

(09:30):
get upset by the news, take a look at your account.
Did your account drop three percent? If it only drop
one percent, well maybe you'll feel a little bit different.
So be diversified, be within your risk tolerance. Don't trade,
just reallocate. Reallocate means, you know, once or twice a year,
make sure you're still within that mix that you want
to be in. And then finally use that emergency fund.

(09:52):
And we talk about it a lot, but how many
people have in retirement one to two years of income need?
And then and the more important part, use it for
that purpose. In other words, if you've got two years
sitting at a money market earning whatever interest you're earning,
and the market drops off in a sustain year year
and a half bear market, are you now drawing money

(10:16):
from the money market instead of your investments so that
when the market recovers you then replenish that emergency fund
and you weren't drawing from your investments when they were down.
Those three things will keep you on an even keel
the rest of your life.

Speaker 1 (10:30):
And I also think some perspective here, right, it may
have felt like this guy was falling on that day.
It was a three percent drop. If you're going to
get out of the market because of a three percent drop,
I'm going to get a headache even just thinking about
how many times you're going to have to get in
and out of the market. Right, we had forgot what
volatility felt like. That was a jolted everyone awake that day.

(10:50):
Everyone's awake and paying attention. Well, listen, don't pay attention
just to the news. Right nowhere you can go to
get some trusted sources of news. I mean, we talked
the places that we go right to do our research
and even some of those. From one day to the
next day, we'll have conflicting headlines. Yeah right, this is
the next big stock. This is the worst stock ever.
They're talking about the same stock within a few days

(11:12):
of each other.

Speaker 2 (11:12):
I'm old enough to remember when the news was really
the news. It was meant to inform you. Now it's
all about clicks and advertisers and getting people to pay
attention to that channel versus this channel. And if you
realize that, you realize that they're going to make a
bigger deal at it, just to bet everything, whether it's
warranted or not. I mean, that's the bottom line. So

(11:34):
take it with the grain of salt. Enjoy life, you know,
live for the day, don't panic over this kind of stuff,
and generally you're going to be fine.

Speaker 1 (11:42):
Here's the all Worth advice. Listen, anything can happen in
one day in the near term, but over time, those
investors who avoid these emotional decisions are highly likely to
enjoy financial security. Right to get where you're trying to
get when it comes to your money. Coming up next,
there's another mistake investors are making that could cost up
to fifteen percent of returns. I'll tell you what that is. Next,

(12:05):
you're listening to Simply Money, presented by all Worth Financial.
Here in fifty five KRC the talk station builting to
Simply Money percent of my all Worth Financial. I mean,
you Wagner along with Steve Scovac. If you can't listen
to our show every night, you do not have to
miss a thing. We've got a daily podcast for you.
Just search Simply Money. It's right there on the iHeart

(12:26):
app or wherever you get your podcasts. Coming up at
six forty three, we're gonna tell you why it might
make sense to divest parts of your portfolio. Right we're
talking about don't time the markets, but when does it
make sense to sell? We'll get into that. Okay, Happy
birthday Social Security turning eighty nine years old this month.

(12:47):
That's good news.

Speaker 2 (12:48):
No jokes about me remembering when it started place.

Speaker 1 (12:51):
Do you remember back in that great Great Depression when
that started FDR, You know, eighty nine years of this program.
And I think it's really important also to remind people
what it was set up for, you know, I mean
this was during the Great Depression to keep people in
our later years from living on the streets. Only ever
set up to replace forty percent of your income when

(13:14):
you're working. Yet what we see far too often is
this is one hundred percent of the income for some
people in retirement.

Speaker 2 (13:21):
Oh my dad was one of them. Maybe it was
ninety nine percent, but extra hundred bucks a month from
a pension from one of his companies. But there are
a lot of people out there, quite a few of
them probably listening, who this is their sole source of income.
And you know, back when Social Security was started back
in the thirties, you have forty employees, forty workers paying

(13:44):
into the system for every retiree. They see. They were smart,
they set up the retirement age. It's changed since, but
you can start drawing full Social Security at sixty five
when it was established. Guess what the age immortality. The
average person in the thirties passed away sixty five. Yeah, yeah,
you know, so they were figure. There's even played a
lot of people paying into this and nobody's going to

(14:05):
draw it. This is the greatest program in the world.

Speaker 1 (14:07):
Really, Well, you've got two.

Speaker 2 (14:09):
And a half workers working today paying for every retiree.
So the math doesn't work. It'll sort out in the
long run because people aren't having as many babies today
as they did thirty forty fifty years ago. But you
know what, in the meantime, we got a system that's
going to be insolvent within about nine or ten years.
This is something a lot of people are worried about,

(14:30):
and I totally understand why.

Speaker 1 (14:33):
Well, and I would say, hey, I've got people who
come in and say, I don't even put Social Security
into my plan. Well, I don't think that's reality. I
think you can expect, you know, seventy to eighty percent
of your promised benefit if if Washington, if Congress doesn't
do anything to change this. Now, we think it'll be
an eleventh hour move, you know, on December thirty first
of twenty thirty three or whatever. That deadline looks like

(14:55):
it's a political hot potato. And we've had several members
of Congress on the show in the past. I've asked
about it. No one wants to answer this one because
whatever decision they're going to make, it's going to make
some population of the voters not happy. Yet, there are
some options on the table, and I really hope that
in twenty thirty three, twenty thirty four, we're not talking
about the fact that people are actually going to have

(15:16):
to take and reduced benefit, and.

Speaker 2 (15:17):
It's going to be a tough pill to swallow when
when they fix it, because the only way you're going
to fix it is pay out less and take in more.
You know that that's the bottom line. And you know,
being a Social Security recipient at this stage in my life,
I'm paying attention to it, but I know the equation
has to change for the program to stay solvent. So
stay tuned.

Speaker 1 (15:37):
Let's talk about that for a second though, because you know,
we often say, hey, if you wait until you're seventy
to claim or full retirement age, you're going to get
you know, seven eight percent more guaranteed every year. Where
else can you get that? Yet you're telling me you
already claimed.

Speaker 2 (15:51):
I did, and full retirement age is at sixty seven.
All that means is is, well, it really allows you
to make more money if you decide to work in
retirement without seeing reduction and benefits. You've basically got from
sixty two to sixty seven about a six percent per
year increase and then an eight percent per year increase

(16:12):
from sixty seven to seventy. So the longer you wait,
the more you're going to collect. Here's here's the asterisk though,
if you live past a certain age. And when we did,
when I used to do financial plans, we ran them
out to age ninety five, and I could show in
black and white all these different scenarios of you know what,
you're going to draw three hundred thousand, two hundred and

(16:34):
eighty thousand, whatever, the number is more out of Social
Security if you wait till you're seventy, if you live
to be ninety five, and that's that's the big question.
I'm more worried about my insolvency than the insolvency of
the system. So I started drawing at sixty two with
my health concerns and you know, just paying the bills

(16:55):
and that sort of thing. I'm willing to take that
bet of am I going to be here at age
ninety five and draw that extra money out of Social Security.
Other people are saying, I'm going to wait till seventy
because the math works out that way almost everybody, and
it might be everybody that I ever told that they'll
have more money and they're going to wait until age
seventy to draw it, change their mind and started drawing

(17:17):
it sooner, because you know, health concern comes up. They're
tired of spending their own money from their investment accounts
that they worked hard for and they just want to
pull money out of the system for whatever reason.

Speaker 1 (17:28):
Yeah, I mean, I think for that perspective, we talk
about the fact that you get the most out of
the system when you're seventy. Was just talking to a
woman a couple of weeks ago, and she had just
turned seventy and it had just started drawing, and I
was saying, gosh, we talk about this, but it's incredibly
stir person someone does that, and she's a professor at
Miami and still teaching, and that's why, you know, that

(17:49):
made sense to her. So just a lot to think
through when you think through social Security. You know, we
talk about the fact that our primary job is to
keep people from making financial mistakes, mistakes with your money
that you just can't recover from. And here's one that
we've seen that's costing investors a big time.

Speaker 2 (18:06):
Yeah, good point. I mean, the average investor misses out
on about fifteen percent of the annual returns of mutual funds.
That's according to morning Star Report. I trust morning Star.
Morning Star is an awesome resource to use I hope
a lot of people use it. And the reason people
are missing out is they're moving money in and out

(18:27):
of their mutual funds. And you know, we just got
done talking about don't time the market. If there's a
bad day, it doesn't necessarily mean you should do something
about it, but you know, there's a certain percentage of
people that do, and investors, being investors, they generally do
it at the wrong time, you know.

Speaker 1 (18:45):
I think one of the funniest conversations to have is
with an investor who's like, well, you're telling me the
S and P five hundred is up whatever, twelve percent
this year, my portfolio is an up twelve percent. Well,
you got out of the market, you got back in,
you got out of the market, you got back and
it's a twelve percent for those who put their money
in and stayed. And that isn't something that you did.

(19:07):
And I really appreciate this research that shows right in
hardcore numbers that you're missing out, you're getting behind where
you could have been by messing with those investments.

Speaker 2 (19:18):
Yeah, and if you haven't, if you're to do it
yourself or good good for you. Use morning Star. I mean,
this is a an unpaid opinion. But morning Star they
show returns after fees and returns versus peers. Great resource
for telling you what the actual returns have been on
your mutual funds.

Speaker 1 (19:37):
Here's the all Worth advice, the fundamentals of investing. They're
really quite simple. Don't make things overly complicated. Coming up next,
we're talking about a red flag that many hiring managers
notice has nothing to do with your resume. You're listening
to simply money presented by all Worth Financial here on
fifty five KRC, the talk station. You're listening to simply

(19:59):
money presented by all We're financial, I mean Wagner. Okay,
if you are looking for a job, or more specifically,
maybe your children or grandchildren are looking for a job,
what is a hiring manager looking for. Here's a hint.
They're not looking for someone who's doing that initial zoom
interview from their bed. This is actually a thing joining

(20:19):
us tonight. Julie Balki, of course, Julie on the job, Julie,
you're joking, right, I mean people are actually doing job
interviews from their beds.

Speaker 3 (20:28):
You know, nobody's surprised to know that we have gotten
way casual over the last few years, but that I
think it's in that going more casual, we sort of
many of us lost our common sense around what appropriate
and you know, I mean I think I remember like

(20:49):
that being in COVID. I would make sure my hair
look great. I had a nice bile, some makeup. That
definitely slid during that two years. But we've got And
then on top of that, we have the younger generation
who are up there interviewing for these jobs, and they
never really had to be in a professional environment, even
in an internship, and so they're just they're treating it

(21:13):
like any other conversation with the guy behind the counter
at Starbucks, and it's just not going over well.

Speaker 1 (21:20):
Okay, So what are hiring managers actually looking for, regardless
of the edge group of whoever's doing the interview. What
do we need to keep in mind?

Speaker 3 (21:28):
So let's let's break down what an interview is. At
its core, it is I am seeing whether I'm a
hiring manager, I have a need, I have an opening,
I have a need to fill, and I am seeing
whether you are going to be a good fit to that.
You the hiring the searching for the job seeker should

(21:49):
be trying to figure out whether this is a place
in which you can succeed, and so the goal and
you'd want to work. And so the goal on both
sides is it are.

Speaker 2 (21:58):
We are we?

Speaker 3 (22:00):
Is this going to be a good fit? Can this
person do the job? Will they fit in here? And
it's so an interview should be an opportunity to put
your best foot forward, and then at the end of
the interview decide both parties decide is this worth having
another conversation about or another conversation and both may say yes,

(22:22):
both may say no. But you always want to keep
yourself in a position so that if at the end
of the interview you're like, yeah, I really you know,
I really like this. You have put your best You've
put your best self out there so that you can
continue on that. If you start off.

Speaker 4 (22:39):
By being like, oh, I'm sorry, I forgot we had
this call, or you know, it looks like you're doing
twelve other things, or you aren't at least interested, you
aren't at least acting like you're interested.

Speaker 3 (22:53):
You shouldn't be jumping up and down that let's at
least act like you're interested, then you may not get
that chance for a second interview. Do you want to
go into it with curiosity, with self knowledge, with ability,
and with the with the ability to answer key questions
and act like act like you're at least interested in

(23:13):
learning more about the job. And then if what you
learn isn't a fit, it's okay to back out at
that point.

Speaker 1 (23:19):
So you said, you know, if you leave this call
and uh, you know you're interested in want to have
hopefully moved the next stage. If there was kind of
a mental checklist that you would say, Okay, I did
all of these things, so hopefully this went well. What
does that checklist look like?

Speaker 3 (23:37):
The first thing is because first of all, there's a
lot of zoom interviews going on now, and so whether
it's zoom or let's say it's a virtual call, whether
it's an interview, whether it's zoom or a phone call,
you you know, have you studied the job description or
the listing. Do you understand what they're looking for? Have
you gone through the process of figuring out which of

(23:58):
your skills or the best fits what they're looking for.
Do you have all of your devices turned off? Is
your background noise turned off? You know? Do you do
a check before they come on camera? Are we looking good?
Do we look like we want to be here, Do
we have anything in Do we have our laundry in
the background? No good, put it away, you know. So

(24:19):
there's the physical stuff. There's the how am I going
to show up in this twenty thirty minute call or
whatever it is? And then there's the am I ready
to talk about myself? And am I ready to put
my best foot forward and matching up what it is
they're looking forward? What am I doing? And so you

(24:39):
want to give yourself every possible opportunity to have them
say yes to you. And so there's the physical readiness,
and then there's just the plain old am I ready
to answer the core questions? Tell me about yourself? Why
are you interested in this job? What are you looking
to do next? What are your strengths and witnesses? Some

(25:02):
of those core interview questions you can say with confidents
you're going to come up at least once during this call,
and so treat everything like it's something you really really
really want. Treat everything every interview like it's an interview
for your dream job, until you learn differently.

Speaker 1 (25:19):
You're listening to Simply Money presented by all Worth Financial.
We are joined by Julia Vaki Julie on the job
tonight with some great tips if you are looking for
a job, your children, your grandchildren. Times have changed. I
mean it seems, you know, ten years ago, could you
have even imagined doing an initial phone call or interview.
I mean, everything happened in person. Now it's almost rare

(25:39):
that unless this goes five rounds, that you ever even
see someone in person. And so how does that change things, Julie?

Speaker 3 (25:47):
So, so think about a funnel. Okay, So if there's
this funnel and there's that, you know, one hundred people
that have a plan for a job, there will be
some sort of screening process and it could be using
to get it down to a smaller note, and then
someone else or some other system will try to get
it down to a manageable number. And let's say you decide,

(26:11):
you know what, let's find our top three candidates out
of this one hundred. We'll bring them in for an interview.
We'll fly them in, we'll do a panel interview. You know,
we'll we'll take this more seriously. The goal is it
and so it's you have to be adept at moving
from and moving from you know, talking on the phone

(26:32):
to talking to someone on zoom to talking to one
person to talking to three people to doing, you know,
three consecutive interviews. And so you have to build that
confidence that says I can carry this all the way
through from that first screening interview down to now they
want me to come downtown for a three hour interview.

(26:53):
And so it's there has to be consistency and if
you the way and so if you show up really
well and really on top of things the very from
the beginning and carry that all the way through when
you walk in the door and shake someone's hand and
start to really get serious about whether it's the match
or not, you have to make sure that you're consistent.

(27:14):
You have to make sure that you are showing up
in a way that really reflects who you are, and
you have to answer questions in a way that you're
not faking it. I've seen people try to be something
they're not because they were so desperate for a job,
and I truly understand the sentiment there, But you won't

(27:35):
be happy and you'll be looking again soon. And so
that consistency from when you enter the process until you're
no longer in the process, is your decision or their
decision is key. You have to be ready from the
first conversation, because if you did learn, oh my gosh,
this is a really great job, you don't want to

(27:56):
have to go yeah, you know that me and my pajamas.
That really wasn't me. I really look like this. So
begin every conversation with this could really be the job
and the career I want.

Speaker 1 (28:07):
And I've heard some buzzwords around, hey, really get your why.
Start with your why. If you can get that across
an interview, you're going to be really well off. What
do we mean by saying, hey, can you get your
why out there to that hiring manager.

Speaker 3 (28:22):
The way I would break that down to make it
more doable is why do you want this job? Why
do you want this career? Why do you want to
work for this company? Why did you apply? Because when
you talk about employers want to see enthusiasm from you,
at least to learn more about the job. If you're
just doing it just to check a box, you aren't

(28:44):
going to show up in a way that you can
be proud of. And so before you apply, or before
you have a first interview at any company, I'd ask
myself why am I applying for this job? Why I
just need a job. Well, that's not good enough. So
what is it about this job? It's a good matter
for who I am and what I want? Why this company?
What have you learned about the company that you you

(29:06):
know that you like? How does it fit for you?
Why does this particular job? Why are you going to
honestly be a good hire for us at this company?
So I think there's more than one why. But you
have to know before you even get into the interview process.
Why am I showing up here? Because nobody wants their
time wasted. And if you show up just like eh,
because my mom told me I had to, then that

(29:29):
comes across and in the middle of the interview you
might be like, well, this comes like kind of a
cool job. It's hard to turn the thinking ship around
at that point.

Speaker 1 (29:35):
Too late, Okay, so I like this. Let's just start
with their basics. Don't show up in your pajamas and
don't show up in your bed. Great tips, so well
beyond that from Julie Valki Julie on the job about
how to stand out during the hiring process. You're listening
to simply money present of my all worth financial here
in fifty five KRC. The talk station. You're listening to

(29:59):
some money present of my all Worth financial Meani Wagner
along with Steve Sprovac. Do you have a financial question
keeping you up at night? You and your spouse not
on the same page about things. There's a red button
you can click on while you're listening to the show.
It's right there on the iHeart Appa cord. Your question.
It's coming straight to us and straight ahead. Keeping your
colleged age kids from racking up credit card debt. I

(30:20):
dropped mine off at college last week.

Speaker 2 (30:22):
Oh boy, this is hitting home for you.

Speaker 1 (30:24):
All of this is hitting home. Yeah, very very close
attention to this next segment. But you know, we spend
every show talking about investing. One thing that we don't
often talk about. We talk about, you know, when it
makes sense to buy, right when markets are down, it
makes sense to buy. Most of the time we would say, hey,
you don't touch the things in your portfolio, but let's
talk about divesting right when it makes sense to sell things.

Speaker 2 (30:48):
Everybody you know, they have a plan on buying, but
do you buy something saying to yourself when this happens,
I'm going to sell almost nobody, almost nobody. So the
selling part of it becomes an emotional knee jerk. Something happened,
I want to sell, decision, and that's not the way
you should do it. But there are times when you

(31:09):
want to divest, when you do want to sell, and
I think one of those is once a year, go
in and rebalance your account at least check this.

Speaker 1 (31:18):
Wait, why this is so important because you're taking on
more risk if you've got that exposure to the stock
market more than you had anticipated.

Speaker 2 (31:25):
I'll give you an example. Most people don't realize that
thirty two percent of the Standard and Pores five hundred
are technology stocks thirty two percent. So if you go
out and buy some Apple, you just bumped it up
even higher, you know. I mean, you've really got to
pay attention to not just how much is in stocks.
And if you started out sixty percent stock and had
a good couple of years, you might be seventy five

(31:46):
percent stock without realizing it. That happens basically to everybody
over time. But you can also with a couple of
you know, purchases, especially in tech, you can get too
heavy in one sector. And these are good reasons to
take a hard look at do I need to sell
a portion of that investment and move it into if
I'm using tech as an example, a non tech investment.

(32:09):
But be careful because if this is a taxable account,
when you sell, if you've got a profit, guess what
enters the picture all of a sudden. You've got to
watch what your gains are that year.

Speaker 1 (32:19):
Yeah, speaking of gains. One thing that also makes sense
is tax strategies, right, tax loss harvesting.

Speaker 2 (32:26):
Hey, tax losses when they're there.

Speaker 1 (32:28):
Yeah, so yeah, you're pulling back from those gains, harvesting
those losses, and that means you're going to owe less
than your taxes. And I think you know, for many people,
this is the missing component when it comes to retirement,
when it comes to investing. When you think about taxes,
you think about tax preparation for April fifteenth. But this
is where you can really make a difference by keeping
more money in your pocket using strategies like this. One

(32:51):
thing is you can adjust. You can adjust your investment strategy.
I feel like though, if you've got an investment strategy,
unless you haven't revisited it for twenty years, this is
not something I say, hey, quarterly, look at this and
move things around. That's not what I'm advocating for here.

Speaker 2 (33:08):
Well, the only good thing that comes out of a
really cruddy stock market, just a big old downturn, is
it gives you a chance to take some losses. And
people are you know, their knee jerk is to say,
why do I want to lose? I made that investment
to make money. Well, you know what, something that goes
down generally usually, especially if it's a mutual fund, comes
back at some point, So why not catch it on

(33:31):
the downturn? Sell it? Put that money in a similar
type of investment. Watch the thirty day rulers lots of
tax considerations, so talk to your accountant before you do this.
But you know what, you can take some losses and
move it into a similar type of investment and then
buy back your original investment at some point so that

(33:52):
you do make money on it. Again, be real cautious
about taking tax losses, and talk to your accountant first.

Speaker 3 (33:58):
You know.

Speaker 1 (33:58):
Another reason to sell is that you know whatever you're
invested in that particular company does not align with your beliefs.
I think about years ago, women I came across, you know,
broadly invested in the S and P five hundred. Several
indexes and then she came to us and said, I
really don't want to invest in companies that produce tobacco. Yeah,
you know, I just it's just not I don't I

(34:18):
don't want it out there. I don't I don't love this.
And so we found a strategy where she could pull
back from those positions. And you can do that in investing.
Right you can feel really strongly about certain companies being
good and certain companies that aren't aligning with things. You know,
figure that out for yourself, or work with a professional
who can help you figure out. Okay, here's some other good,
strong US companies. And if you feel really strongly about this,

(34:41):
you don't have to I'm gonna throw another one too.
That's if a company is fundamentally not looking very sound.

Speaker 2 (34:46):
Well that's a good reason that you might want to consider.
So I want to own a dog. You know, companies
that had every reason in the world for you to
buy them at some point may not turn out to
be a winner. And you know, if it looks like
they they don't have any long term positives about them,
even though it stinks. Everybody hates losing. But you know what,

(35:06):
sometimes you need to how about time horizon. Okay, has
your time horizon changed? Okay, I'm pastor I'm in retirement
right now. Is my risk tolerance going to change? Yeah
at some point, not yet, you know, But I don't
like the argument of your time horizon is based on
your retirement date, and that's when I want to move

(35:26):
out of stocks and live off the interest. Retirement is
not the end of life.

Speaker 1 (35:31):
You know, you got to keep looking to it exactly.
Here's the all Worth advice when deciding whether to divest.
Same concept applies. Don't make any decisions based on fear
or greed. Coming up next help full info for parents
who just drop their kids off at college. You're listening
to Simply Money, presented by all Worth Financial. Here in
fifty five KRC the talk station. You're listening to Simply Money.

(35:56):
You're sent my all Worth Financial I Memi Wagner along
with Steve Sprovac. Okay, for of all, For those parents
who drop their kids off at college, or maybe they're
living at home and they're in the middle of classes
right now, I just wanna say, my heart hurts for you,
this whole letting your kids growth, you know, just like
take off. You know, it's a lot. Today's one of

(36:17):
the first days. I haven't shed any tears yet.

Speaker 2 (36:19):
I was going to ask you because you just dropped grace.

Speaker 1 (36:22):
I know, I don't love it. I don't love it.
I mean, I get that this is very exciting and
this is all this new freedom that they have, and
that also makes me nervous. And I think about when
I first went off to college. Uh, and I was
on UK's campus and there were all these tents set
up all over the place, free t shirts, free water bottles.
All you had to do was sen up for credit cards.
They have dialed back on that a lot, but there

(36:45):
are still a lot of kids going off to college
with credit cards. And here's my question for you. Have
you had the Gary Wagner conversation.

Speaker 2 (36:51):
With your kids.

Speaker 1 (36:53):
Literally, the one thing that my dad said to me
scared me to death before I went off to college
was here is a credit card. It is for emergencies,
and whatever you put on there, you have to be
able to pay off every month. Don't ever, ever, ever
carry a balance.

Speaker 2 (37:08):
To this day, I wish my dad had a conversation
with me. I'm not sure what it meant anything. I
was perfectly capable of maxing out my visa all by myself.
I didn't need to give it to my kid going
away to college to help me. Okay, my question for you,
did you give Grace a credit card?

Speaker 1 (37:27):
She doesn't have one yet. They're really they're more difficult
to qualify for now based on your income. She does
have a debit card in the Venmo and the Apple
pay and all the things that kids have now. But
I got to say, over the past couple of years,
I've really seen her become really mature and a lot
more responsible about her money. So I wouldn't have an
issue with it if she did have a credit card,

(37:49):
And at some point we'll probably make her an authorized
user on ours to build up her credit. But I
don't think as a freshman she needs that. And that's
what the stats bear out. Twenty five percent of college
students have credit cards that exceeding one thousand dollars.

Speaker 2 (38:03):
And they have no way of paying that back.

Speaker 1 (38:04):
How the heck are they going to pay that off?

Speaker 2 (38:06):
Yes, waiting tables, and I doubt that, you know, so
it's hard to do. Please be cautious with your kids
in credit cards when they're in college. I would encourage
separate savings accounts. I mean, just if you need to
save up for something, you do it in a savings
account over time instead of a credit card.

Speaker 1 (38:25):
Please have these conversations with your kids while they're still
in high school, right before they take off an hour away,
three hours away, or even if they're going to Xavier
or NKU or UC and they're living at home. You
don't exactly have insight into all of their finances, so
make sure that they have the tools they need. Thank
you for listening tonight. We hope you're going to tune tomorrow.
We're talking about strategies that you can use to reduce

(38:47):
your financial stress. You've been listening to Simply Money present
of my all Worth Financial here in fifty five KRC,
the talk station