September 9, 2025 • 41 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian break down a weak August jobs report with Allworth’s Chief Investment Officer Andy Stout and what it could mean for the Federal Reserve’s upcoming rate decision. They also revisit the famous “4% rule” for retirement withdrawals — does it still hold up in today’s economy? Andy returns later in the show with strategies for growing capital and protecting against inflation, including buffered ETFs, direct indexing, and private equity. Plus, your questions answered on estate planning, charitable trusts, private equity investing, and even retiring abroad.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Where you hear about it.
Speaker 2 (00:01):
Donald Trump, I'm extreme mag of Republican crashing the economy.
Speaker 1 (00:04):
This is where you talk about it. Steeple care tactics.
That's all the Democrats having their tank here about it.
Speaker 2 (00:11):
Donald Trump's tariffs are weighing down the US economy.
Speaker 1 (00:14):
Mid Chairman Jerome Palatt economy is in a solid position.
Employment rate for mix low talk about it, speak of
both size of the news, and I like that. I
appreciate how you guys get the truth out there. Thank
you fifty five KRZ the talk station.
Speaker 2 (00:34):
Tonight, We've got a slew of important economic data to preview. Plus,
should you still adhere to that four percent rule? You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James Well. Next week, the
Federal Reserve is going to decide what to do with
interest rates, and it's going to have a whole bunch
(00:55):
of data to review from this week. And speaking of
this week, where tonight by all Wors Chief investment Officer
Andy Stout. Andy manages over thirty billion dollars of investments
from right here in good old Cincinnati.
Speaker 3 (01:09):
Andy, let's start with the labor market.
Speaker 2 (01:12):
On Friday, we learned that the US economy added jobs
at a pretty darn slow pace in August.
Speaker 4 (01:18):
Why was that, Well, it wasn't just August, it was
actually revisions again to the prior months. What we saw
for this last month though, in August was just employers
adding only twenty two thousand jobs. That was well short
of the forecast for seventy five thousand. And on top
of that bup, we had June get revised lower, so
(01:40):
it actually flipped in a negative negative territory, showing that
employers actually had a net decline of jobs, so people
let go of more people than what they hired. So
when we look at, you know, just those headline numbers
before we even get into the weeds, it shows that
the rhetoric you're hearing in the news headlines about you know,
(02:03):
the weak labor market is starting to show through into
the data itself.
Speaker 5 (02:07):
So what does this mean, Andy, Because the market is
holding up, right, but we're basically at an all time
high on the market. Obviously that's not all this is about.
But at the same time, there doesn't seem to be
panic out there. There doesn't seem to be massive reactions
to this so when we get but we're getting these
numbers that indicate a slowing economy, and it also is
looking like like you know, kind of hinted at there,
that the interust rates are definitely coming down. Here, the
(02:29):
question is not is not if it's really how much,
but at the same time, how impactful is how negative
is this for the overall economy or is this just
kind of business as usual?
Speaker 4 (02:39):
Well, it's not quite business as usual. When you look
at the actual data. There's like pockets of weakness rotating
throughout the economy. So when you look at the various areas,
you know, like housing for instance, it was really weak
you know a few years ago obvious or for the
past few years, but it's it's kind of stagnated. It's
not really going anywhere. There's not too much downside in
(03:02):
housing right now, just given the lack of activity that's
out there. I mean, it can't really get too much
slower in all honesty, so there's not much downside. Really,
there's the upside. There's risk to the upside, so risk
of improvement. You know, we're going to need morege race
to come down even more than what they have. You
can look at manufacturing similar story, it's kind of leveled off,
hasn't really gone anywhere, so we're kind of rotating through
(03:24):
this weakness. And right now we're at the jobs portion
where we're seeing the labor market, you know, show fewer
employers adding jobs. We're seeing the unappoyment rate tick up
to four point three percent. And when you look at
that and what it means, certainly it has some negative
implications for the consumer, and that's really the big thing.
But it's not to the point where the consumer is
(03:45):
pulling back on anything. Because Brian, consumer spending is roughly
seventy percent of our total economic output, and right now
consumers are still spending. We can see that in retail
sales numbers, you know, that we get out, you know,
one month. We can see then some other spending data
that we get out. And when you look at all
the data that's come in so far, even including this
(04:08):
pretty poor jobs report, the economy is still tracking. Based
on all the data we receive so far, it's still
tracking at a three percent growth rate. So when we
look at Q three GDP, the data that's been released
so far indicates that the economy is growing at three
percent based on that data. Now, obviously more data will
(04:29):
come in and that could change it, but the bottom
line is we're still seeing that growth, We're still seeing
the consumer hanging in there, and yes, your jobs could
mean less spending, but we're not at the point where
the consumer is showing any signs of pulling back, and
that's really the key thing to hone in on all.
Speaker 2 (04:44):
Right, Andy, Tomorrow, the Bureau of Labor Statistics is going
to release a revision to employment data for the twelve
months ending this past March. What do you think that
revision is going to show? And more importantly, do you
think there's really going to be any significance to the
lease of that data since we're looking so far back
in the rearview mirror at this point, because as you
(05:06):
just mentioned, I mean, we see consumer spending data all
the time on an ongoing basis. So what do you
think is going to happen with that Bureau report tomorrow
and is it even going to move the need a little?
Speaker 4 (05:19):
Well, what I've been seeing out there from various economists
that I'm reading, they're expecting it a lower revision of
maybe around five hundred thousand jobs up to nine hundred
thousand fewer jobs for that one year period. Now, if
you remember having a similar conversation about the twelve month
period ending March of twenty twenty four, the government ended
(05:41):
up revising the lower the jobs by eight hundred and
eighteen thousand. So now we're looking at the next year later, right,
And that was that eight hundred and eighteen thousand. That
was like the third largest since nineteen seventy nine. So
that was that was really big news. And to your point,
doesn't matter, Yeah, it does matter. It essentially re rights
the economic baseline that we used to understand the labor
(06:04):
market and the labor market strength, to help us identify
just broad trends. So you know, it does matter because
it tells us where we're coming from. Now, here's the thing.
So it tells us where we're coming from, tells us
where where we're at. But what does that mean. Does
that mean we need to have some sort of knee
jerk reaction. No, here's how I would think about. I
would treat it like you know, you're driving, and treat
(06:26):
it like the map gets adjusted after you know, the
GPS shows that you're off by a few hundred miles. Now,
all of a sudden you got a new route to go.
It's think of it as the new route, recalibrating the
route to get to where we need to get to.
But we're just starting at a different place all of
a sudden, you know, we didn't have internet service for
like a you know, an hour, and we turned the
(06:48):
wrong way. So we got to figure out where we're
going at.
Speaker 2 (06:51):
All, Right, Andy, I got to follow up with that question.
Just you know, we all know President Trump, you know,
fired a Bureau of Labor systistics person. And I've heard
a bunch of economists talk about this since you know,
if you take the President's behavior out of it, it
really does seem to be antiquated the way we're actually
collecting this data.
Speaker 3 (07:10):
I mean, I don't know about you, Andy.
Speaker 2 (07:12):
If I'm going on a trip and I find out
after I'm one hundred miles off course that I need
to make a revision, I need a new GPS system.
Speaker 3 (07:21):
I mean, you look at this stuff all day every day.
Speaker 2 (07:24):
Are are we collecting data in a way that's helpful
to the FED and economists or is it really as
antiquated and outdated as you know, our data collection methods
Are they as outdated as we're hearing.
Speaker 4 (07:39):
Yeah, I think they are. When you think about what
the government's doing the specifically the Bureau of Labor Statistics,
you know, they're essentially surveying employers and they do it
over a three month period and it really depends on
which employers respond during which time. And then you know,
once a year we do these annual revisions like we're
about to do right now, which is based on more
(08:01):
responses that have come in, but also based on the
state unemployment claims, insurance benefits in other words, and then
it provides a more complete, accurate picture. So we're going
to get the more accurate picture at least through the
March of twenty twenty five tomorrow. Now you can make
an argument that, well, we're doing these surveys over three
month periods, and the response rates I've been getting lower
(08:23):
and lower. In fact, the one in August was the
lowest response rate in a couple of years. So it
really shows you that we're relying on people getting back
to us. And August is a notoriously poor time in
terms of getting high response rates because people are on vacation.
So I mean, we're relying on people not being out
(08:44):
of office. So yes, there are better ways to do things.
I mean you could even if you want to go
so far to the extreme of like maybe a significantly
better way. And this is something that does me and
the investment team. We're talking about actually on Friday was
using blockchain. I mean you think about you think blockchain, Well, wait,
I mean bitcoin. Now, bitcoin is based on blockchain technology,
(09:07):
but blockchain is just a general ledger that is like
updated real time and it's verified by essentially every source.
So it's it's it can be a very powerful tool
that could give us almost a very real time snapshot
of what's going on in the economy, in the labor market.
So yes, Bob, it is antiquated, it is outdated, and
(09:28):
we shouldn't.
Speaker 2 (09:29):
As opposed to collecting data as opposed to collecting data
via facts machine right the way we're doing it now, you're.
Speaker 3 (09:37):
Letting your biases show, Bob. I'm just no, there's not
a bias, That's what I'm hearing.
Speaker 6 (09:42):
I think your bias toward facts machines.
Speaker 3 (09:46):
Oh okay, all right, let's see.
Speaker 5 (09:48):
I do have a question, Andy, So the people within
the sound of our voices are largely involved in manufacturing
those types of industries. Which of these things you know
that affect Ohio, Indiana, Kentucky, Mark. Is there anything specific
that they should be paying attention to that's a little
more relevant here than elsewhere.
Speaker 4 (10:05):
Well, I mean you can talk about Kruger, they have
earnings coming out this week and thinking about just layoffs
and jobs. You know, they just announced relatively recently that
you know, a thousand corporate roles are being acted. Unfortunately,
that's going to be a couple of hundred from here,
just in the downtown area Cincinnati. Now, certainly, the the
(10:28):
magnitude of that, you know, it's not material from the
fact that they have four hundred and nine thousand employees,
but you know, it does have an impact on the
downtown and the culture in general. So, you know, when
we think about just the overall job market and what
it means right there, I think it's a and you
mentioned the manufacturing and local companies as well. I think
(10:51):
it's really a thought exercise, if you will, in terms
of what's going on more broadly, and that pretty much
anything can be applied locally, because it's really if you
think about what Ohio represents and what Cincinnati represent, it's
almost like a microcosm of the broader country because we
cover many different areas. You know, you know, there's some
(11:13):
decent technology companies here, deferent manufacturing companies here, and we
talked about a few other things already, so you know,
from that perspective, you know, I think what you really
need to think about is which companies are facing margin pressures,
Which companies are able to, you know, leverage an artificial intelligence,
but leverage it in a way that they're still able
to use that to grow, not just to cut cost.
(11:36):
And that's what we're seeing with the whole job mark.
It's almost like a shifting dynamic where there's more i'll
call it labor supply than there is a labor demand.
So when you put that all together, it's really about
making sure that you know the companies you're looking at
to invest in or maybe even work for that they're
positioned in a way that they're able to adapt to
this evolving in commune and it can be tricky, and
(11:57):
that's something that you got to watch really closely.
Speaker 2 (12:00):
All right, Andy, Let's say in this segment talking about
interest strakes, I mean, the FED meets a week from Wednesday.
It appears as though the market's already pricing in about
a ninety five percent probability of a.
Speaker 3 (12:11):
Quarter point rate cut.
Speaker 2 (12:13):
Do you think there's any chance we get a bigger
cut than that, you know, a week from Wednesday on
the seventeenth.
Speaker 4 (12:19):
Well, when you look at the data as of right now, actually, uh,
there is basically a thirteen percent chance of a half
point rate cut. A quarter point rate cuts fully pricing
thirteen percent chance, I think is not even really worth
thinking about. I think it's probably just people, you know,
hedging some bets out there. I would be shocked if
(12:39):
we don't get a quarter point rate cut. And then
you look out over the remainder of this year. Right
now the market is pricing and three quarter point rate
cuts now, I think it'll be interesting going back to
the earlier part of our conversation. If anybody missed that part,
feel free to, you know, listen to the podcast and
rewind it here and listen to it again and again
because it's so riveting. But if we do get the
job revisions, massively lower base on will have through March
(13:01):
twenty twenty five, you know, that could alter some of
this probability. Something to watch for, all.
Speaker 2 (13:05):
Right, coming up next We're going to explore whether a
quote unquote rule that's been guiding retirees for decades still applies.
Speaker 3 (13:13):
Today.
Speaker 2 (13:13):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the Talk station.
Speaker 1 (13:21):
His Day, What's the event of the day, What's going on?
Will be busy?
Speaker 5 (13:25):
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Speaker 7 (13:29):
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Check in Brian Thomas Tomorrow morning at five on fifty
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Speaker 7 (13:36):
Allworth Financial a registered investment advisory firm. Any ideas presented
during this program are not intended to provide specific financial advice.
You should consult your own financial advisor, tax consultant, or
a state planning attorney to conduct your own due diligence.
Speaker 2 (13:55):
You're listening to Simply Money, presented by Allworth Financial on
Bob'spond Seller along with Brian James. If you can't listen
to Simply Money every night, subscribing get our daily podcasts.
And if you think your friends could use some financial advice,
tell them about us as well. Just search Simply Money
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Speaker 3 (14:14):
Straight Ahead at six forty three.
Speaker 2 (14:16):
We're going to answer some of the smartest money questions
we've heard.
Speaker 3 (14:19):
Yet on our Ask the Advisor segment.
Speaker 2 (14:23):
All right, Brian, this is a great topic and all
of you out there you've probably heard it, the so
called four percent rule. It's one of the most talked
about rules in retirement planning. But here's the thing. It
was created back in the nineteen nineties and a lot's
changed since then, interest rates, inflation, life expectancy, different investment vehicles,
(14:43):
tax planning.
Speaker 3 (14:44):
Even how we think about retirement.
Speaker 2 (14:47):
Brian, let's first cover what is the four percent rule,
and then let's get into, you know, whether we should
still be applying that rule today.
Speaker 7 (14:54):
Yeah.
Speaker 5 (14:54):
So there's a lot of studies and rules of thumb
and things like that out there, and we normally kind of,
at least I do you kind of shy away from
those because I think there's it's way too simple to
say everybody should do X, especially when we're trying to
build customized plans for everybody.
Speaker 6 (15:09):
But this one that said, I actually like this one.
So the four percent rule.
Speaker 5 (15:12):
A lot of people know this, and people will frequently
bring it up in meetings and they'll say, well, I
know I can pull out about four percent out of
my portfolio, and I'll say, cool, where'd you get that number?
I don't know. Somebody at the water cooler told me.
But see here's where it came from. This actually was
a study. A gentleman named William Bengan did this in
nineteen ninety four. And what he did was he looked
at thirty year periods starting back in nineteen twenty six.
So this encompasses all of the crazy ever since the
(15:35):
Roaring twenties. So another put differently, nineteen twenty six to
nineteen fifty six, twenty seven to fifty seven, twenty eight
to fifty eight, and on down the line all the
way through nineteen ninety four back then. And what he
determined was that if at all of those thirty year
periods a financial plan.
Speaker 6 (15:50):
Was successful, if the portfolio.
Speaker 5 (15:53):
Was only drawn down by four percent, that does not
mean will be super clear here, that does not mean
that that portfolio was never, ever, ever underwater.
Speaker 6 (16:01):
That is not the point.
Speaker 5 (16:02):
This assumes that somebody did not panic, let the market
ride up and down, and people who participated in this
were safe pulling out about four percent. So he's now
updated it and made some changes to the assumptions in
the plan, expanded his data set to include retirees starting
the first day of every quarter from January first of
(16:22):
nineteen twenty six through January first of nineteen ninety three,
and then to include more recent periods. He also added
one hundred and nineteen hypothetical retirements ending as late as
October first of twenty twenty two. So he kind of
filled in the partial data with long term average returns
and included CPI again to kind of flesh it out
a little bit. Now he's come up with a new rule,
(16:43):
which he's calling his universal safe max rule, and instead
of four percent, he's saying four point seven percent. That's
a positive outcome. But on the other hand, I like
sticking with four percent. I think it's a good, safe,
kind of baseline to expect, and I wouldn't want anybody
calculating I'm going to take out exactly this dollar out
because I read it on the internet somewhere.
Speaker 3 (17:02):
Brian, that's a wonderful overview.
Speaker 2 (17:04):
My head is already spinning here with all the joy
job it was.
Speaker 3 (17:08):
It was pretty impressive.
Speaker 2 (17:10):
A couple a couple of caveats here, just we need
to remind folks that this entire study, whether you want
to do the updated one or the one back in
nineteen ninety, it assumes a sixty forty portfolio, meaning sixty
percent in stocks forty percent in fixed income, and people
sticking with that. I mean, obviously not every single investor
(17:30):
out there is going to be comfortable with that level
of risk.
Speaker 3 (17:34):
Some people want more, some people want less.
Speaker 2 (17:37):
I find, Brian, you know a lot of times, well,
we'll set up a retirement income strategy or withdrawal plan
based on something close to this, because the math works.
But invariably people will start on that income you know, journey,
and then they forget, you know, the calls come in,
the emails come in saying, hey, I want to buy
a new car, or I want to put a fifty
(17:59):
thousand dollars kitchen remodel on my house. People can tend
to forget about these lump sum withdraws, and that throws
this whole thing.
Speaker 3 (18:07):
Out of whack.
Speaker 2 (18:08):
So I say, hey, this is great as a starting
point for a discussion, but there's a lot more that
needs to go into it. When you actually navigate someone
through a thirty to forty year retirement period of time.
Speaker 5 (18:21):
Yeah, that's that's a great point, Bob. So we will
have people come in having done all that research and
they'll say, here's my plan. I got this much money,
and I can take exactly four percent out of it,
So I don't want to take any more risk than
I have to just get me to four percent and
then we'll all be happy. That's really not the point
of the study. The study is assuming, and the old
point of it is that you can handle the up
(18:42):
and down volatility of a slightly more aggressive portfolio than
something that's only going to average four percent over time.
And so if you have a portfolio that averaged let's
say six percent, that's not that aggressive of a portfolio.
Matter of fact, that's what UBS projects the future returns
on a sixty forty portfolio around six percent. That extra
two percent over the assumption is what will give you
the ability to take those lump sums. Two percent sounds
(19:04):
like nothing over a year. Remember we're extrapolating over three
decades the way compounding works. So the whole assumption of
this is that you'll have more to be able to
take those lump sums out and handle it versus the
four percent. So don't think of this as a green
light to I only have to worry about getting four percent,
and I'll never have anything to worry about again. This
is simply to set some expectations of what has been
(19:26):
reliable in the past.
Speaker 3 (19:29):
All right, well, let's get into practical application of this.
Speaker 2 (19:31):
You know, one other thing I want to throw out
there is sometimes, you know, it doesn't make a whole
lot of sense to plan for people to plan to
spend in their mid to late eighties what they want
to spend in their sixties. And so a lot of
times I'll say, yeah, it's okay to spend a little
bit more in those first ten years of retirement because
(19:52):
you're healthy, you got travel, you know, plans and things
that you want to do. Do you run into those
kind of conversations at all with your clients?
Speaker 3 (20:00):
How do you guide people through this? Oh?
Speaker 6 (20:01):
Absolutely?
Speaker 5 (20:02):
And then again people come in with the assumption of
I need to keep it super super conservative. And the
whole point of a customized financial plan is, let's look
at your situation.
Speaker 6 (20:11):
Let's ignore these rules of thumb.
Speaker 5 (20:12):
That's rules of thumb are fine if you're thinking about
something of a stop sign, but when you're digging into
your own financial plan. Let's build specific cash flows to
support what you want to do, and then let's worry
about that. If we've got the ability to stress test
a plan based on reality, we don't need rules of them.
Speaker 3 (20:28):
Here's the all Worth advice.
Speaker 2 (20:30):
The four percent rule is a solid starting point, but
real retirement success comes from staying flexible and adjusting as
life and markets change. Coming up next, all Worth Chief
Investment Officer Andy Stout is back with solutions for investors
who are looking to boost their capital, grow their capital
and protect themselves from inflation. You're listening to Simply Money,
(20:52):
presented by all Worth Financial on fifty five KRC.
Speaker 3 (20:55):
The talk station.
Speaker 1 (20:57):
Today is definitely it's a good today to be in
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Speaker 2 (21:23):
You're listening to Simply Money presented by all Worth Financial
Onbob Spondsller along with Brian James and our chief investment
officer here at all Worth, Andy Stout is back with
us for this segment. Andy, You're here to talk about
capital and pre appreciation and inflation protection. Talk to us
about how to do that. What should we do with
(21:44):
our money to help it grow?
Speaker 4 (21:47):
Well, there are many things you can do. Obviously we've
heard real estate, individual stocks, individual you know, some various heads,
fund equity. There's lots of ways that you can you know,
benefit from that. And we're happy to go into any
detail you want, but I would actually take a step back,
(22:09):
and I would say when you think about, you know,
your investments and growing over time, and obviously nothing can
be guaranteed. Uh saying that for our compliance department out there,
so we don't get our hands slapped, But taking taking
a step back, the biggest thing you can do is
not get in your own way. I mean, if you
(22:31):
think about it, we have a fear of missing out,
and we tend to panic, and we go through this
emotional roller coaster if you will, And what ends up
happening if you just let your emotions guide your investment
decisions is you end up buying high in selling love,
which isn't the exact opposite thing of what you want
to do. Now, you know, don't need to make this
a you know, a lesson on behavioral finance. Or anything
(22:53):
like that. But you know, I would say the one
takeaway is that know that you're not rational. People are
not rational. We're driven by emotions. Have a plan ahead
of time, and stick to that plan, because otherwise you
are going to be essentially buying high and selling low.
And I mentioned some of the strategies that we talked
about a second ago, and we can dive into them here.
But if you don't separate your emotions from your investments,
(23:16):
you're going to end up not probably not doing as
well as you could have otherwise, in spite of maybe
having the best strategy in the entire universe, it won't
matter if you let your emotions take over. And I
mean there's lots of really good strategies out there. You know,
we can look at individual equity strategies, like if you're
(23:38):
really maybe focused on getting income, you know, there's plenty
of really good individual stocks out there, and just make
sure that if you want income, they're focused on dividends
and they're well diversified so you can exposure to multiple sectors.
And if you're looking for something that's more total return,
which I think probably makes more sense because you can
always make your own dividends just by selling stocks.
Speaker 5 (24:00):
And so I'm gonna shift because you're raising a question
here in my head inflation protection, and I'm thinking of
conversations I've had recently from people who are trying to separate.
I want to protect from from inflation, but I also
want to protect myself from the ups and downs of
the stock market.
Speaker 6 (24:15):
Now a lot of times, you know those are those
are almost mutually exclusive.
Speaker 5 (24:19):
You have to accept a little risk on one side
to somehow defer the risk on the other side. So
what would you say to those people who were really
sensitive to volatility in the stock market, want to keep
up with inflation and trying to find a way to
thread that needle.
Speaker 4 (24:34):
I would say, you can't have your cake and eat
it too. To your point, you know, you have to
get something or give something up to get something. Another
famous line in the investing world is there is no
free lunch. So when you think about it from that perspective,
you do have to give something up, and you can.
You can protect the downside and still have plenty of
(24:56):
potential upside. And there's different strategies for that. They could
involve stock options, they can involve buffer ETFs, they can
involve structured notes. They can involve having a diversified portfolio
that's just not one hundred percent stocks. Maybe it's eighty
twenty eight percent stocks, twenty percent mods or forty sixty
really whatever risk profile or comfortab with. Because when I
think about just the overall investment strategies for people and
(25:18):
trying to essentially get that return they need to get
to beat inflation and have capital appreciation. The big thing
is making sure you're able to sleep at night, because
if you're not able to sleep at night, you're going
to end up, you know, making that emotional decision. So
having that right risk profile at the very onset is
really key. So you have individual stock strategies. You know,
one thing that I think is really good because you
think about individual stock strategies, you think about a diversified
(25:40):
strategy of using ets and mutual funds and that's all.
Those are all great, and you're looking for what i'll
call alpha or a relative outperformance to you know, whatever
you're trying to achieve. But there's also tax alpha as well,
and that's something that's very powerful. So you could look
at some direct indexes, which what they look to do.
They look to you know, generate some losses to offset
(26:02):
gains and still have that total return. Essentially, imagine index
on a pre tax basis, but then beat it on
an after tax basis. So how you could do that
is you still get the exposure to your i'll call
it your maybe some housing stocks or whatever, or home
improvement stocks. Let's let's use that example instead, and maybe
home deep. It goes down, so you sell home depot
and you buy more lows because they're going to move
(26:23):
kind of together, and you still get that same general exposure,
but all of a sudden you bank the loss and
overall hopefully you still have gains. And then what you
end up showing for your tax report is the ability
to lower that those realize gains and lower how much
you pay to the irs. So there's a lot of
really good strategies out there. And the last one I'll
mention besides like direct indexes and I already mentioned fund
(26:46):
of funds, individual stocks, you know, private investments. Those have
the potential for outperformance as well. Like private equity is
a really good example. Private real estate is another really
good example. Now those tend to be more complex, and
you got to make sure you're it's a line through
I risktolerance and the suitability really is set up to
make sure that you understand how all those things work.
(27:07):
But there is the ability for those types of investments
to be what I'll call uncorrelated, meaning they may not
move with the broad market, but over time they still
have plenty of upsides. So you know, Brian just asked
that question a second ago about you know, kind of
like a minimizing some downside rest to a degree, still
have that upside here. I would say you could also
(27:27):
do it by looking at the correlation or things that
don't move together.
Speaker 2 (27:31):
All right, lots of good stuff to consider, and as always,
it's important to pair your risk tolerance with your goals
and it should all be part of a good comprehensive
financial plan that factors in both return, risk and tax planning.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KORC, the talk station.
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In twenty twenty four, fifty five KRC the talkstation.
Speaker 2 (28:37):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James. Do you have
a financial question you'd like for us to answer. There's
a red button you can click while you're listening to
the show right on the iHeart app. Simply record your
question and it will come straight to us. All right, Brian,
Let's lead things off with Arthur in Blue Ash and
(28:58):
he says, our estate plan was written before we had grandchildren.
How do we update things so gifts skip a generation
without creating tax headaches?
Speaker 5 (29:09):
Yeah, so this is an interesting one. We're referring to
as a generation skipping transfer tax, and this is something
that comes up from time to time. So the GST
tax the IRS imposes a special tax if you're going
to transfer assets directly to your grandchildren, in other words,
skipping over your own children. There's a special tax involved
to prevent avoiding a state and gift taxes twenty twenty five.
(29:30):
That GST exemption is about thirteen and a half million dollars.
That can shield a large portion of gifts from this tax,
but it has to be properly allocated. In that estate plan.
You got to name the things you're going to do.
So there are things called generation skipping trusts. You can
set up a trust that will benefit your grandchildren or
beyond while taking advantage of THATSGST exemption that will do it.
Speaker 6 (29:50):
A five to twenty nine college plan that can do
it as well.
Speaker 5 (29:53):
That's a great way, a really tax free way to
transfer well to your grandchildren. That's not going to cover
a massive estate. But the neat thing there is the
rule change they made. A lot of people say, well,
I don't want to throw all that money in for
college because I don't know if these babies are actually
going to go to college.
Speaker 6 (30:06):
Maybe they'll get a fool ride. Who knows. Why would
I do that?
Speaker 5 (30:09):
Well, remember nowadays the beneficiaries can convert those to roth
conversion contributions down the road, So lots of things there
you can do there skip generations. However, don't simply put
my grandkids are getting this, not my kids. You need
a generation skipping trust that will handle that properly, says
Move on to Tom and Mason.
Speaker 6 (30:27):
This question for you, Bob.
Speaker 5 (30:28):
Tom has heard about charitable remainder trust and he's wondering
what those are, how they work, and do they make
sense If I have appreciated stock, is that something that
can help Tom, Tom.
Speaker 3 (30:37):
It might help.
Speaker 2 (30:37):
It depends on what your overall goals are. But let's
just get into the basics here. Charitable remainder trust basically
means you're gonna take a chunk of stock, in this case,
you know, appreciated stock, low cost basis, and you get
to a completely avoid the capital gains taxes on that stock.
Speaker 3 (30:55):
But you got to give it all away.
Speaker 2 (30:56):
You give it away and then you maintain an income
stream for either the rest of your life or a
period of years.
Speaker 3 (31:04):
So you got to look at the pros and cons
of doing this.
Speaker 2 (31:07):
Obviously, if you're not charitably inclined to begin with, it's
probably not going to make a lot of sense for
you because you do give up the right to the
principle it's not going to go to your heirs when
you pass away. So but you can customize these things
based on your overall financial plan and what your goals
are from an income standpoint, charitable planning standpoint. They're wonderful
(31:29):
tools and they can be customized based on your individual
goals of your family. It's a wonderful strategy and I've
used it a lot over the years with clients and
I haven't really come across anyone that's been unhap happy
about doing it.
Speaker 3 (31:43):
So something definitely to look.
Speaker 2 (31:45):
Into, all right, Mike in Florence, He says, I've been
offered the chance to invest in a friend's private equity fund.
How do I evaluate if that's a real opportunity or
just too risky for us?
Speaker 5 (31:57):
Yeah, these can be exciting opportunities, espcially, you know, to
invest with a friend.
Speaker 6 (32:01):
And that's a loaded phrase because things.
Speaker 5 (32:03):
Can go well, they can go greater, they can go sideways,
and you've got to separate the friendship from the investment.
But this is private equity is literally somebody started a
business and they've said, Hey, I got a cool idea,
here's what it looks like, here's what we think it
can do.
Speaker 6 (32:14):
Would you like to invest in it?
Speaker 5 (32:16):
This is as opposed to you know, investing in the
public markets, which are you know, we're talking mutual funds
and stocks and bonds, those kinds of things.
Speaker 3 (32:23):
So of course there's risk here.
Speaker 5 (32:24):
Private equity funds typically will lock up your money for
seven to ten years. Now, this particular example that Mike
is sharing is not really a fund. It's just his
friend has his friend has a business and he's looking
for outside investors. But those are the same types of
opportunities that private actual private equity funds invest in, and
so you got to look at that lock up. What
they're looking to do is invest in a company and
(32:47):
allow it to grow for seven to ten years.
Speaker 6 (32:49):
This is not going to be a liquid investment. This
is money.
Speaker 5 (32:52):
Not only should you consider it to be gone in
a sense you may never get it back.
Speaker 6 (32:55):
It's like anything else.
Speaker 5 (32:57):
But you need to know that you're not gonna be
able to get these dollars back if something s happened
in your life, So make sure it's money that you
can tuck away for a while and forget about. On
the upside, returns can be really really attractive. The more
risk it take, the more return you can get. So
if it's something you believe in, then then it could
be worth it look for a track record. How much
transparency are you gonna get are they Are they giving
you a clear document? Is there a perspectives behind this
(33:19):
or are they simply asking you for a check that
they're going to invest somehow some way. You really want
to be sure that you've covered your bases in terms
of knowing what you're gonna what you're gonna get into here.
But at the same time, you know it can be
a great opportunity, so you know, look, go in with
wyse wide open. But if it looks like a good opportunity, well,
one other thing, if there's real estate involved that that
usually makes it even better. If you can own the
real estate of whatever this business sits on, that can
(33:41):
make you a little more protected because you'll have at
least a fallback on whatever the value of that is. Clearly,
ask whether the real estate underneath the business, if that's
the case, exists as part of the investment. All right,
Emily Anderson Township. Emily is thinking about retiring abroad, and
she's wondering beyond that lifestyle planning stuff that they're all
excited about, what are the financial pitfalls.
Speaker 6 (34:00):
They should be aware of.
Speaker 2 (34:02):
Well, Emily, I I'd say the first thing to do,
once you narrow it down to, you know, maybe a
couple of different countries that you're considering, get yourself a
good CPA, because you want to look at the tax
laws you know, and how in whatever country you're considering,
and how those dovetails with how those dovetail with US
tax laws, so you don't want any surprises there on
(34:23):
how your income and your capital gains and all that's
going to be taxed. And then I'd say the second
thing to learn a lot about is just the whole
area of property ownership rules and how laws work in
different count you know, countries, because you don't want to
assume you're going to do something and buy something and
then be very surprised about how tax you know or
(34:45):
how ownership rules work in various countries.
Speaker 3 (34:49):
So those would be.
Speaker 5 (34:50):
Yeah, I just I had ahead a client just go
through this, And I've got some thoughts to share for
Emily too, because the questions came up pretty directly. So
as Bob mentioned, Yeah, you still have to pay your
tax returns. Of course you're still filing. Got to take
a look at that. You're gonna want to look into
Medicare as well. Medicare does not cover you outside of
the United States. You're going to need some private international
health insurance or look into the local systems out There
(35:11):
is state planning, inheritance laws. If you've got somewhat complicated
a state, if you've got moving parts to the things
you own and something should happen, make sure your family's
going to be a well situated. You'll want an attorney
in the mix there too. Not to mention currency risk.
You're going to be moving your money in and out
of the country. So lots of things to look into there.
But it sounds exciting.
Speaker 2 (35:29):
No great call out there on the Medicare coverage. That's
obviously a huge thing to consider, all right, Brian, One
more for you, Brian and terras Park.
Speaker 3 (35:36):
Brian talking to Brian here.
Speaker 2 (35:38):
He says, our family has a large life insurance policy
owned inside of trust.
Speaker 3 (35:43):
How often should.
Speaker 2 (35:44):
We be reviewing that policy to make sure it's still
structured properly?
Speaker 5 (35:49):
Well, it depends on where the goal of the policy is.
We don't know what this trust is. This could be
something called an irrevocable life insurance trust, where that's intended
to create in a state where there was none so
a lot of times that's called an islet. An islet
exists only to have a death benefit. Frankly, there's there
are no other assets in it. So that's something you're
going to want to review with a trustee, probably maybe annually.
(36:12):
That seems a little aggressive, but at least every now
and then. Put it that way, and make sure that
the policy inside if that's what this is, is make
sure it's well funded. Really, every insurance policy has cash value.
Should make sure it's got enough gas in the engine.
So I would take a look at that.
Speaker 3 (36:27):
All right.
Speaker 2 (36:27):
Coming up next, how the girlfriend of a famous football
coach is taking advantage of being called.
Speaker 3 (36:33):
A gold digger.
Speaker 2 (36:34):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station.
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Week days at seven started asking how much fifty five
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You're listening to, Simply Money, presented by all Worth Financial.
I'm Bob sponseller alone with Brian James, and I gotta
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That bumper music. Brian.
Speaker 2 (37:37):
It's not every day that a term like gold digger
becomes a potential business asset, but that's exactly what's happening
in the latest twist involving legendary football coach Bill Belichick
and his girlfriend named Jordan Hudson. Brian, before we kick
the things, well, let's just get into it. According to
public filings, I mean, this.
Speaker 5 (37:58):
Is this is America, Bob, It's America. We're here to
make money. We're here to make.
Speaker 3 (38:02):
Money, all right.
Speaker 2 (38:03):
According to public filings, Jordan Hudson, through a company called
TCE Rights Management that she manages, submitted a whole bunch
of trademark applications. First of all, for the whole term
gold digger. She's trying to trademark that to be used
on jewelry and key chains and other things she's got
going on. And I can't help but think the timing
(38:27):
isn't accidental here. Let's get into that whole relationship for
folks that don't know anything about it.
Speaker 5 (38:32):
Yeah, So this country was founded hundreds of years ago
with the idea that we want free enterprise, and free
enterprise is that looks a little different than the founding
fathers imagined it. So Jordan Hudson, twenty four year old
arm Candy of Bill Belichick, has submitted a trademark application
for gold Digger. She's gonna put it on jewelry and
key chains and so forth. And so this really isn't
a one off. There's a bunch of these out there
(38:54):
her company, which I'm guessing there's not much more to
this company than a bunch of trademark applications, but phrases
like no days off the Belichick way and chapel Bill,
get it, chapel Hill, chapel Bill.
Speaker 6 (39:05):
Very clever. Huh.
Speaker 5 (39:06):
She's really trying to build a brand around his name
and his persona down there all for you know, a
stunning beat down by Texas Christian University in his first
first game there, So.
Speaker 6 (39:17):
Not the worst idea, I suppose.
Speaker 5 (39:18):
It just makes me a little sad that this is
kind of how we operate these days. And I really
wonder what their conversations are like at dinner.
Speaker 3 (39:26):
Yeah, I don't know.
Speaker 2 (39:27):
One thing I do know is Bill doesn't need any
more distractions. I mean they actually they absolutely got pummeled
by TCU in Week one and they looked horrible doing it.
So that guy needs to be focused on football and
trying to, you know, get his get their act together
on the field. I mean, kudos to him. She's twenty
(39:50):
four years old, he's seventy one. I'll leave all that there.
It's born of love, Bob. This is all about love, right.
It's a May December love story. Look for it on
Hallmark Channel near you. Okay, Well, I guess there's there's
supposedly some business logic here. Controlling phrases tied to public
figures like Belichick could mean future opportunities for merchandise, media appearances.
(40:16):
It's a calculated strategy. Some insiders say it's amateurish and
question how much, if at all, Belichick's.
Speaker 3 (40:24):
Really involved in this.
Speaker 2 (40:26):
I mean, I saw the video of his little girlfriend
coming to the sideline before the game asking for money
to go to the concession stand. I mean, it all
feels ridiculous to me, but it's a new story and
we thought it'd be humorous to talk about.
Speaker 5 (40:43):
Yeah, I mean it is, at the very least, it's
an interesting business story. At the end of the day,
business is really whatever keeps people's attention for even a
brief amount of time. How are we going to profit
off it? And that is that, unfortunately, is the American way. However,
it doesn't impact how you go to how you go
handle your job and support your family.
Speaker 6 (41:00):
These are things to.
Speaker 5 (41:00):
Point at and laugh at while we all lead responsible,
more scene lives.
Speaker 3 (41:05):
All right, thanks for listening.
Speaker 2 (41:06):
Tune in tomorrow and we'll talk about a real life
example of how a lack of diversification can absolutely crush
a family. You've been listening to Simply Money, presented by
all Worth Financial on fifty five KRC, the talk station.
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Speaker 2 (00:01):
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This is where you talk about it. Steeple care tactics.
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Speaker 2 (00:34):
Tonight, We've got a slew of important economic data to preview. Plus,
should you still adhere to that four percent rule? You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James Well. Next week, the
Federal Reserve is going to decide what to do with
interest rates, and it's going to have a whole bunch
(00:55):
of data to review from this week. And speaking of
this week, where tonight by all Wors Chief investment Officer
Andy Stout. Andy manages over thirty billion dollars of investments
from right here in good old Cincinnati.
Speaker 3 (01:09):
Andy, let's start with the labor market.
Speaker 2 (01:12):
On Friday, we learned that the US economy added jobs
at a pretty darn slow pace in August.
Speaker 4 (01:18):
Why was that, Well, it wasn't just August, it was
actually revisions again to the prior months. What we saw
for this last month though, in August was just employers
adding only twenty two thousand jobs. That was well short
of the forecast for seventy five thousand. And on top
of that bup, we had June get revised lower, so
(01:40):
it actually flipped in a negative negative territory, showing that
employers actually had a net decline of jobs, so people
let go of more people than what they hired. So
when we look at, you know, just those headline numbers
before we even get into the weeds, it shows that
the rhetoric you're hearing in the news headlines about you know,
(02:03):
the weak labor market is starting to show through into
the data itself.
Speaker 5 (02:07):
So what does this mean, Andy, Because the market is
holding up, right, but we're basically at an all time
high on the market. Obviously that's not all this is about.
But at the same time, there doesn't seem to be
panic out there. There doesn't seem to be massive reactions
to this so when we get but we're getting these
numbers that indicate a slowing economy, and it also is
looking like like you know, kind of hinted at there,
that the interust rates are definitely coming down. Here, the
(02:29):
question is not is not if it's really how much,
but at the same time, how impactful is how negative
is this for the overall economy or is this just
kind of business as usual?
Speaker 4 (02:39):
Well, it's not quite business as usual. When you look
at the actual data. There's like pockets of weakness rotating
throughout the economy. So when you look at the various areas,
you know, like housing for instance, it was really weak
you know a few years ago obvious or for the
past few years, but it's it's kind of stagnated. It's
not really going anywhere. There's not too much downside in
(03:02):
housing right now, just given the lack of activity that's
out there. I mean, it can't really get too much
slower in all honesty, so there's not much downside. Really,
there's the upside. There's risk to the upside, so risk
of improvement. You know, we're going to need morege race
to come down even more than what they have. You
can look at manufacturing similar story, it's kind of leveled off,
hasn't really gone anywhere, so we're kind of rotating through
(03:24):
this weakness. And right now we're at the jobs portion
where we're seeing the labor market, you know, show fewer
employers adding jobs. We're seeing the unappoyment rate tick up
to four point three percent. And when you look at
that and what it means, certainly it has some negative
implications for the consumer, and that's really the big thing.
But it's not to the point where the consumer is
(03:45):
pulling back on anything. Because Brian, consumer spending is roughly
seventy percent of our total economic output, and right now
consumers are still spending. We can see that in retail
sales numbers, you know, that we get out, you know,
one month. We can see then some other spending data
that we get out. And when you look at all
the data that's come in so far, even including this
(04:08):
pretty poor jobs report, the economy is still tracking. Based
on all the data we receive so far, it's still
tracking at a three percent growth rate. So when we
look at Q three GDP, the data that's been released
so far indicates that the economy is growing at three
percent based on that data. Now, obviously more data will
(04:29):
come in and that could change it, but the bottom
line is we're still seeing that growth, We're still seeing
the consumer hanging in there, and yes, your jobs could
mean less spending, but we're not at the point where
the consumer is showing any signs of pulling back, and
that's really the key thing to hone in on all.
Speaker 2 (04:44):
Right, Andy, Tomorrow, the Bureau of Labor Statistics is going
to release a revision to employment data for the twelve
months ending this past March. What do you think that
revision is going to show? And more importantly, do you
think there's really going to be any significance to the
lease of that data since we're looking so far back
in the rearview mirror at this point, because as you
(05:06):
just mentioned, I mean, we see consumer spending data all
the time on an ongoing basis. So what do you
think is going to happen with that Bureau report tomorrow
and is it even going to move the need a little?
Speaker 4 (05:19):
Well, what I've been seeing out there from various economists
that I'm reading, they're expecting it a lower revision of
maybe around five hundred thousand jobs up to nine hundred
thousand fewer jobs for that one year period. Now, if
you remember having a similar conversation about the twelve month
period ending March of twenty twenty four, the government ended
(05:41):
up revising the lower the jobs by eight hundred and
eighteen thousand. So now we're looking at the next year later, right,
And that was that eight hundred and eighteen thousand. That
was like the third largest since nineteen seventy nine. So
that was that was really big news. And to your point,
doesn't matter, Yeah, it does matter. It essentially re rights
the economic baseline that we used to understand the labor
(06:04):
market and the labor market strength, to help us identify
just broad trends. So you know, it does matter because
it tells us where we're coming from. Now, here's the thing.
So it tells us where we're coming from, tells us
where where we're at. But what does that mean. Does
that mean we need to have some sort of knee
jerk reaction. No, here's how I would think about. I
would treat it like you know, you're driving, and treat
(06:26):
it like the map gets adjusted after you know, the
GPS shows that you're off by a few hundred miles. Now,
all of a sudden you got a new route to go.
It's think of it as the new route, recalibrating the
route to get to where we need to get to.
But we're just starting at a different place all of
a sudden, you know, we didn't have internet service for
like a you know, an hour, and we turned the
(06:48):
wrong way. So we got to figure out where we're
going at.
Speaker 2 (06:51):
All, Right, Andy, I got to follow up with that question.
Just you know, we all know President Trump, you know,
fired a Bureau of Labor systistics person. And I've heard
a bunch of economists talk about this since you know,
if you take the President's behavior out of it, it
really does seem to be antiquated the way we're actually
collecting this data.
Speaker 3 (07:10):
I mean, I don't know about you, Andy.
Speaker 2 (07:12):
If I'm going on a trip and I find out
after I'm one hundred miles off course that I need
to make a revision, I need a new GPS system.
Speaker 3 (07:21):
I mean, you look at this stuff all day every day.
Speaker 2 (07:24):
Are are we collecting data in a way that's helpful
to the FED and economists or is it really as
antiquated and outdated as you know, our data collection methods
Are they as outdated as we're hearing.
Speaker 4 (07:39):
Yeah, I think they are. When you think about what
the government's doing the specifically the Bureau of Labor Statistics,
you know, they're essentially surveying employers and they do it
over a three month period and it really depends on
which employers respond during which time. And then you know,
once a year we do these annual revisions like we're
about to do right now, which is based on more
(08:01):
responses that have come in, but also based on the
state unemployment claims, insurance benefits in other words, and then
it provides a more complete, accurate picture. So we're going
to get the more accurate picture at least through the
March of twenty twenty five tomorrow. Now you can make
an argument that, well, we're doing these surveys over three
month periods, and the response rates I've been getting lower
(08:23):
and lower. In fact, the one in August was the
lowest response rate in a couple of years. So it
really shows you that we're relying on people getting back
to us. And August is a notoriously poor time in
terms of getting high response rates because people are on vacation.
So I mean, we're relying on people not being out
(08:44):
of office. So yes, there are better ways to do things.
I mean you could even if you want to go
so far to the extreme of like maybe a significantly
better way. And this is something that does me and
the investment team. We're talking about actually on Friday was
using blockchain. I mean you think about you think blockchain, Well, wait,
I mean bitcoin. Now, bitcoin is based on blockchain technology,
(09:07):
but blockchain is just a general ledger that is like
updated real time and it's verified by essentially every source.
So it's it's it can be a very powerful tool
that could give us almost a very real time snapshot
of what's going on in the economy, in the labor market.
So yes, Bob, it is antiquated, it is outdated, and
(09:28):
we shouldn't.
Speaker 2 (09:29):
As opposed to collecting data as opposed to collecting data
via facts machine right the way we're doing it now, you're.
Speaker 3 (09:37):
Letting your biases show, Bob. I'm just no, there's not
a bias, That's what I'm hearing.
Speaker 6 (09:42):
I think your bias toward facts machines.
Speaker 3 (09:46):
Oh okay, all right, let's see.
Speaker 5 (09:48):
I do have a question, Andy, So the people within
the sound of our voices are largely involved in manufacturing
those types of industries. Which of these things you know
that affect Ohio, Indiana, Kentucky, Mark. Is there anything specific
that they should be paying attention to that's a little
more relevant here than elsewhere.
Speaker 4 (10:05):
Well, I mean you can talk about Kruger, they have
earnings coming out this week and thinking about just layoffs
and jobs. You know, they just announced relatively recently that
you know, a thousand corporate roles are being acted. Unfortunately,
that's going to be a couple of hundred from here,
just in the downtown area Cincinnati. Now, certainly, the the
(10:28):
magnitude of that, you know, it's not material from the
fact that they have four hundred and nine thousand employees,
but you know, it does have an impact on the
downtown and the culture in general. So, you know, when
we think about just the overall job market and what
it means right there, I think it's a and you
mentioned the manufacturing and local companies as well. I think
(10:51):
it's really a thought exercise, if you will, in terms
of what's going on more broadly, and that pretty much
anything can be applied locally, because it's really if you
think about what Ohio represents and what Cincinnati represent, it's
almost like a microcosm of the broader country because we
cover many different areas. You know, you know, there's some
(11:13):
decent technology companies here, deferent manufacturing companies here, and we
talked about a few other things already, so you know,
from that perspective, you know, I think what you really
need to think about is which companies are facing margin pressures,
Which companies are able to, you know, leverage an artificial intelligence,
but leverage it in a way that they're still able
to use that to grow, not just to cut cost.
(11:36):
And that's what we're seeing with the whole job mark.
It's almost like a shifting dynamic where there's more i'll
call it labor supply than there is a labor demand.
So when you put that all together, it's really about
making sure that you know the companies you're looking at
to invest in or maybe even work for that they're
positioned in a way that they're able to adapt to
this evolving in commune and it can be tricky, and
(11:57):
that's something that you got to watch really closely.
Speaker 2 (12:00):
All right, Andy, Let's say in this segment talking about
interest strakes, I mean, the FED meets a week from Wednesday.
It appears as though the market's already pricing in about
a ninety five percent probability of a.
Speaker 3 (12:11):
Quarter point rate cut.
Speaker 2 (12:13):
Do you think there's any chance we get a bigger
cut than that, you know, a week from Wednesday on
the seventeenth.
Speaker 4 (12:19):
Well, when you look at the data as of right now, actually, uh,
there is basically a thirteen percent chance of a half
point rate cut. A quarter point rate cuts fully pricing
thirteen percent chance, I think is not even really worth
thinking about. I think it's probably just people, you know,
hedging some bets out there. I would be shocked if
(12:39):
we don't get a quarter point rate cut. And then
you look out over the remainder of this year. Right
now the market is pricing and three quarter point rate
cuts now, I think it'll be interesting going back to
the earlier part of our conversation. If anybody missed that part,
feel free to, you know, listen to the podcast and
rewind it here and listen to it again and again
because it's so riveting. But if we do get the
job revisions, massively lower base on will have through March
(13:01):
twenty twenty five, you know, that could alter some of
this probability. Something to watch for, all.
Speaker 2 (13:05):
Right, coming up next We're going to explore whether a
quote unquote rule that's been guiding retirees for decades still applies.
Speaker 3 (13:13):
Today.
Speaker 2 (13:13):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the Talk station.
Speaker 1 (13:21):
His Day, What's the event of the day, What's going on?
Will be busy?
Speaker 5 (13:25):
Frankie News, The President just said, good morning, what.
Speaker 1 (13:28):
Will yours look like?
Speaker 7 (13:29):
Hey?
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New days coming?
Speaker 5 (13:30):
Check in Brian Thomas Tomorrow morning at five on fifty
five KRZ, the Talk station.
Speaker 7 (13:36):
Allworth Financial a registered investment advisory firm. Any ideas presented
during this program are not intended to provide specific financial advice.
You should consult your own financial advisor, tax consultant, or
a state planning attorney to conduct your own due diligence.
Speaker 2 (13:55):
You're listening to Simply Money, presented by Allworth Financial on
Bob'spond Seller along with Brian James. If you can't listen
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And if you think your friends could use some financial advice,
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Speaker 3 (14:14):
Straight Ahead at six forty three.
Speaker 2 (14:16):
We're going to answer some of the smartest money questions
we've heard.
Speaker 3 (14:19):
Yet on our Ask the Advisor segment.
Speaker 2 (14:23):
All right, Brian, this is a great topic and all
of you out there you've probably heard it, the so
called four percent rule. It's one of the most talked
about rules in retirement planning. But here's the thing. It
was created back in the nineteen nineties and a lot's
changed since then, interest rates, inflation, life expectancy, different investment vehicles,
(14:43):
tax planning.
Speaker 3 (14:44):
Even how we think about retirement.
Speaker 2 (14:47):
Brian, let's first cover what is the four percent rule,
and then let's get into, you know, whether we should
still be applying that rule today.
Speaker 7 (14:54):
Yeah.
Speaker 5 (14:54):
So there's a lot of studies and rules of thumb
and things like that out there, and we normally kind of,
at least I do you kind of shy away from
those because I think there's it's way too simple to
say everybody should do X, especially when we're trying to
build customized plans for everybody.
Speaker 6 (15:09):
But this one that said, I actually like this one.
So the four percent rule.
Speaker 5 (15:12):
A lot of people know this, and people will frequently
bring it up in meetings and they'll say, well, I
know I can pull out about four percent out of
my portfolio, and I'll say, cool, where'd you get that number?
I don't know. Somebody at the water cooler told me.
But see here's where it came from. This actually was
a study. A gentleman named William Bengan did this in
nineteen ninety four. And what he did was he looked
at thirty year periods starting back in nineteen twenty six.
So this encompasses all of the crazy ever since the
(15:35):
Roaring twenties. So another put differently, nineteen twenty six to
nineteen fifty six, twenty seven to fifty seven, twenty eight
to fifty eight, and on down the line all the
way through nineteen ninety four back then. And what he
determined was that if at all of those thirty year
periods a financial plan.
Speaker 6 (15:50):
Was successful, if the portfolio.
Speaker 5 (15:53):
Was only drawn down by four percent, that does not
mean will be super clear here, that does not mean
that that portfolio was never, ever, ever underwater.
Speaker 6 (16:01):
That is not the point.
Speaker 5 (16:02):
This assumes that somebody did not panic, let the market
ride up and down, and people who participated in this
were safe pulling out about four percent. So he's now
updated it and made some changes to the assumptions in
the plan, expanded his data set to include retirees starting
the first day of every quarter from January first of
(16:22):
nineteen twenty six through January first of nineteen ninety three,
and then to include more recent periods. He also added
one hundred and nineteen hypothetical retirements ending as late as
October first of twenty twenty two. So he kind of
filled in the partial data with long term average returns
and included CPI again to kind of flesh it out
a little bit. Now he's come up with a new rule,
(16:43):
which he's calling his universal safe max rule, and instead
of four percent, he's saying four point seven percent. That's
a positive outcome. But on the other hand, I like
sticking with four percent. I think it's a good, safe,
kind of baseline to expect, and I wouldn't want anybody
calculating I'm going to take out exactly this dollar out
because I read it on the internet somewhere.
Speaker 3 (17:02):
Brian, that's a wonderful overview.
Speaker 2 (17:04):
My head is already spinning here with all the joy
job it was.
Speaker 3 (17:08):
It was pretty impressive.
Speaker 2 (17:10):
A couple a couple of caveats here, just we need
to remind folks that this entire study, whether you want
to do the updated one or the one back in
nineteen ninety, it assumes a sixty forty portfolio, meaning sixty
percent in stocks forty percent in fixed income, and people
sticking with that. I mean, obviously not every single investor
(17:30):
out there is going to be comfortable with that level
of risk.
Speaker 3 (17:34):
Some people want more, some people want less.
Speaker 2 (17:37):
I find, Brian, you know a lot of times, well,
we'll set up a retirement income strategy or withdrawal plan
based on something close to this, because the math works.
But invariably people will start on that income you know, journey,
and then they forget, you know, the calls come in,
the emails come in saying, hey, I want to buy
a new car, or I want to put a fifty
(17:59):
thousand dollars kitchen remodel on my house. People can tend
to forget about these lump sum withdraws, and that throws
this whole thing.
Speaker 3 (18:07):
Out of whack.
Speaker 2 (18:08):
So I say, hey, this is great as a starting
point for a discussion, but there's a lot more that
needs to go into it. When you actually navigate someone
through a thirty to forty year retirement period of time.
Speaker 5 (18:21):
Yeah, that's that's a great point, Bob. So we will
have people come in having done all that research and
they'll say, here's my plan. I got this much money,
and I can take exactly four percent out of it,
So I don't want to take any more risk than
I have to just get me to four percent and
then we'll all be happy. That's really not the point
of the study. The study is assuming, and the old
point of it is that you can handle the up
(18:42):
and down volatility of a slightly more aggressive portfolio than
something that's only going to average four percent over time.
And so if you have a portfolio that averaged let's
say six percent, that's not that aggressive of a portfolio.
Matter of fact, that's what UBS projects the future returns
on a sixty forty portfolio around six percent. That extra
two percent over the assumption is what will give you
the ability to take those lump sums. Two percent sounds
(19:04):
like nothing over a year. Remember we're extrapolating over three
decades the way compounding works. So the whole assumption of
this is that you'll have more to be able to
take those lump sums out and handle it versus the
four percent. So don't think of this as a green
light to I only have to worry about getting four percent,
and I'll never have anything to worry about again. This
is simply to set some expectations of what has been
(19:26):
reliable in the past.
Speaker 3 (19:29):
All right, well, let's get into practical application of this.
Speaker 2 (19:31):
You know, one other thing I want to throw out
there is sometimes, you know, it doesn't make a whole
lot of sense to plan for people to plan to
spend in their mid to late eighties what they want
to spend in their sixties. And so a lot of
times I'll say, yeah, it's okay to spend a little
bit more in those first ten years of retirement because
(19:52):
you're healthy, you got travel, you know, plans and things
that you want to do. Do you run into those
kind of conversations at all with your clients?
Speaker 3 (20:00):
How do you guide people through this? Oh?
Speaker 6 (20:01):
Absolutely?
Speaker 5 (20:02):
And then again people come in with the assumption of
I need to keep it super super conservative. And the
whole point of a customized financial plan is, let's look
at your situation.
Speaker 6 (20:11):
Let's ignore these rules of thumb.
Speaker 5 (20:12):
That's rules of thumb are fine if you're thinking about
something of a stop sign, but when you're digging into
your own financial plan. Let's build specific cash flows to
support what you want to do, and then let's worry
about that. If we've got the ability to stress test
a plan based on reality, we don't need rules of them.
Speaker 3 (20:28):
Here's the all Worth advice.
Speaker 2 (20:30):
The four percent rule is a solid starting point, but
real retirement success comes from staying flexible and adjusting as
life and markets change. Coming up next, all Worth Chief
Investment Officer Andy Stout is back with solutions for investors
who are looking to boost their capital, grow their capital
and protect themselves from inflation. You're listening to Simply Money,
(20:52):
presented by all Worth Financial on fifty five KRC.
Speaker 3 (20:55):
The talk station.
Speaker 1 (20:57):
Today is definitely it's a good today to be in
flor what's good for us to tell you check in
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Speaker 2 (21:23):
You're listening to Simply Money presented by all Worth Financial
Onbob Spondsller along with Brian James and our chief investment
officer here at all Worth, Andy Stout is back with
us for this segment. Andy, You're here to talk about
capital and pre appreciation and inflation protection. Talk to us
about how to do that. What should we do with
(21:44):
our money to help it grow?
Speaker 4 (21:47):
Well, there are many things you can do. Obviously we've
heard real estate, individual stocks, individual you know, some various heads,
fund equity. There's lots of ways that you can you know,
benefit from that. And we're happy to go into any
detail you want, but I would actually take a step back,
(22:09):
and I would say when you think about, you know,
your investments and growing over time, and obviously nothing can
be guaranteed. Uh saying that for our compliance department out there,
so we don't get our hands slapped, But taking taking
a step back, the biggest thing you can do is
not get in your own way. I mean, if you
(22:31):
think about it, we have a fear of missing out,
and we tend to panic, and we go through this
emotional roller coaster if you will, And what ends up
happening if you just let your emotions guide your investment
decisions is you end up buying high in selling love,
which isn't the exact opposite thing of what you want
to do. Now, you know, don't need to make this
a you know, a lesson on behavioral finance. Or anything
(22:53):
like that. But you know, I would say the one
takeaway is that know that you're not rational. People are
not rational. We're driven by emotions. Have a plan ahead
of time, and stick to that plan, because otherwise you
are going to be essentially buying high and selling low.
And I mentioned some of the strategies that we talked
about a second ago, and we can dive into them here.
But if you don't separate your emotions from your investments,
(23:16):
you're going to end up not probably not doing as
well as you could have otherwise, in spite of maybe
having the best strategy in the entire universe, it won't
matter if you let your emotions take over. And I
mean there's lots of really good strategies out there. You know,
we can look at individual equity strategies, like if you're
(23:38):
really maybe focused on getting income, you know, there's plenty
of really good individual stocks out there, and just make
sure that if you want income, they're focused on dividends
and they're well diversified so you can exposure to multiple sectors.
And if you're looking for something that's more total return,
which I think probably makes more sense because you can
always make your own dividends just by selling stocks.
Speaker 5 (24:00):
And so I'm gonna shift because you're raising a question
here in my head inflation protection, and I'm thinking of
conversations I've had recently from people who are trying to separate.
I want to protect from from inflation, but I also
want to protect myself from the ups and downs of
the stock market.
Speaker 6 (24:15):
Now a lot of times, you know those are those
are almost mutually exclusive.
Speaker 5 (24:19):
You have to accept a little risk on one side
to somehow defer the risk on the other side. So
what would you say to those people who were really
sensitive to volatility in the stock market, want to keep
up with inflation and trying to find a way to
thread that needle.
Speaker 4 (24:34):
I would say, you can't have your cake and eat
it too. To your point, you know, you have to
get something or give something up to get something. Another
famous line in the investing world is there is no
free lunch. So when you think about it from that perspective,
you do have to give something up, and you can.
You can protect the downside and still have plenty of
(24:56):
potential upside. And there's different strategies for that. They could
involve stock options, they can involve buffer ETFs, they can
involve structured notes. They can involve having a diversified portfolio
that's just not one hundred percent stocks. Maybe it's eighty
twenty eight percent stocks, twenty percent mods or forty sixty
really whatever risk profile or comfortab with. Because when I
think about just the overall investment strategies for people and
(25:18):
trying to essentially get that return they need to get
to beat inflation and have capital appreciation. The big thing
is making sure you're able to sleep at night, because
if you're not able to sleep at night, you're going
to end up, you know, making that emotional decision. So
having that right risk profile at the very onset is
really key. So you have individual stock strategies. You know,
one thing that I think is really good because you
think about individual stock strategies, you think about a diversified
(25:40):
strategy of using ets and mutual funds and that's all.
Those are all great, and you're looking for what i'll
call alpha or a relative outperformance to you know, whatever
you're trying to achieve. But there's also tax alpha as well,
and that's something that's very powerful. So you could look
at some direct indexes, which what they look to do.
They look to you know, generate some losses to offset
(26:02):
gains and still have that total return. Essentially, imagine index
on a pre tax basis, but then beat it on
an after tax basis. So how you could do that
is you still get the exposure to your i'll call
it your maybe some housing stocks or whatever, or home
improvement stocks. Let's let's use that example instead, and maybe
home deep. It goes down, so you sell home depot
and you buy more lows because they're going to move
(26:23):
kind of together, and you still get that same general exposure,
but all of a sudden you bank the loss and
overall hopefully you still have gains. And then what you
end up showing for your tax report is the ability
to lower that those realize gains and lower how much
you pay to the irs. So there's a lot of
really good strategies out there. And the last one I'll
mention besides like direct indexes and I already mentioned fund
(26:46):
of funds, individual stocks, you know, private investments. Those have
the potential for outperformance as well. Like private equity is
a really good example. Private real estate is another really
good example. Now those tend to be more complex, and
you got to make sure you're it's a line through
I risktolerance and the suitability really is set up to
make sure that you understand how all those things work.
(27:07):
But there is the ability for those types of investments
to be what I'll call uncorrelated, meaning they may not
move with the broad market, but over time they still
have plenty of upsides. So you know, Brian just asked
that question a second ago about you know, kind of
like a minimizing some downside rest to a degree, still
have that upside here. I would say you could also
(27:27):
do it by looking at the correlation or things that
don't move together.
Speaker 2 (27:31):
All right, lots of good stuff to consider, and as always,
it's important to pair your risk tolerance with your goals
and it should all be part of a good comprehensive
financial plan that factors in both return, risk and tax planning.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KORC, the talk station.
Speaker 1 (27:53):
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(28:15):
listen every day daily.
Speaker 7 (28:17):
Thank you for putting out your show on iHeartRadio.
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Fifty five KRS the talkstation. Your opinions are welcome to here.
Speaker 6 (28:26):
I do think he is too old to run.
Speaker 1 (28:28):
In twenty twenty four, fifty five KRC the talkstation.
Speaker 2 (28:37):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James. Do you have
a financial question you'd like for us to answer. There's
a red button you can click while you're listening to
the show right on the iHeart app. Simply record your
question and it will come straight to us. All right, Brian,
Let's lead things off with Arthur in Blue Ash and
(28:58):
he says, our estate plan was written before we had grandchildren.
How do we update things so gifts skip a generation
without creating tax headaches?
Speaker 5 (29:09):
Yeah, so this is an interesting one. We're referring to
as a generation skipping transfer tax, and this is something
that comes up from time to time. So the GST
tax the IRS imposes a special tax if you're going
to transfer assets directly to your grandchildren, in other words,
skipping over your own children. There's a special tax involved
to prevent avoiding a state and gift taxes twenty twenty five.
(29:30):
That GST exemption is about thirteen and a half million dollars.
That can shield a large portion of gifts from this tax,
but it has to be properly allocated. In that estate plan.
You got to name the things you're going to do.
So there are things called generation skipping trusts. You can
set up a trust that will benefit your grandchildren or
beyond while taking advantage of THATSGST exemption that will do it.
Speaker 6 (29:50):
A five to twenty nine college plan that can do
it as well.
Speaker 5 (29:53):
That's a great way, a really tax free way to
transfer well to your grandchildren. That's not going to cover
a massive estate. But the neat thing there is the
rule change they made. A lot of people say, well,
I don't want to throw all that money in for
college because I don't know if these babies are actually
going to go to college.
Speaker 6 (30:06):
Maybe they'll get a fool ride. Who knows. Why would
I do that?
Speaker 5 (30:09):
Well, remember nowadays the beneficiaries can convert those to roth
conversion contributions down the road, So lots of things there
you can do there skip generations. However, don't simply put
my grandkids are getting this, not my kids. You need
a generation skipping trust that will handle that properly, says
Move on to Tom and Mason.
Speaker 6 (30:27):
This question for you, Bob.
Speaker 5 (30:28):
Tom has heard about charitable remainder trust and he's wondering
what those are, how they work, and do they make
sense If I have appreciated stock, is that something that
can help Tom, Tom.
Speaker 3 (30:37):
It might help.
Speaker 2 (30:37):
It depends on what your overall goals are. But let's
just get into the basics here. Charitable remainder trust basically
means you're gonna take a chunk of stock, in this case,
you know, appreciated stock, low cost basis, and you get
to a completely avoid the capital gains taxes on that stock.
Speaker 3 (30:55):
But you got to give it all away.
Speaker 2 (30:56):
You give it away and then you maintain an income
stream for either the rest of your life or a
period of years.
Speaker 3 (31:04):
So you got to look at the pros and cons
of doing this.
Speaker 2 (31:07):
Obviously, if you're not charitably inclined to begin with, it's
probably not going to make a lot of sense for
you because you do give up the right to the
principle it's not going to go to your heirs when
you pass away. So but you can customize these things
based on your overall financial plan and what your goals
are from an income standpoint, charitable planning standpoint. They're wonderful
(31:29):
tools and they can be customized based on your individual
goals of your family. It's a wonderful strategy and I've
used it a lot over the years with clients and
I haven't really come across anyone that's been unhap happy
about doing it.
Speaker 3 (31:43):
So something definitely to look.
Speaker 2 (31:45):
Into, all right, Mike in Florence, He says, I've been
offered the chance to invest in a friend's private equity fund.
How do I evaluate if that's a real opportunity or
just too risky for us?
Speaker 5 (31:57):
Yeah, these can be exciting opportunities, espcially, you know, to
invest with a friend.
Speaker 6 (32:01):
And that's a loaded phrase because things.
Speaker 5 (32:03):
Can go well, they can go greater, they can go sideways,
and you've got to separate the friendship from the investment.
But this is private equity is literally somebody started a
business and they've said, Hey, I got a cool idea,
here's what it looks like, here's what we think it
can do.
Speaker 6 (32:14):
Would you like to invest in it?
Speaker 5 (32:16):
This is as opposed to you know, investing in the
public markets, which are you know, we're talking mutual funds
and stocks and bonds, those kinds of things.
Speaker 3 (32:23):
So of course there's risk here.
Speaker 5 (32:24):
Private equity funds typically will lock up your money for
seven to ten years. Now, this particular example that Mike
is sharing is not really a fund. It's just his
friend has his friend has a business and he's looking
for outside investors. But those are the same types of
opportunities that private actual private equity funds invest in, and
so you got to look at that lock up. What
they're looking to do is invest in a company and
(32:47):
allow it to grow for seven to ten years.
Speaker 6 (32:49):
This is not going to be a liquid investment. This
is money.
Speaker 5 (32:52):
Not only should you consider it to be gone in
a sense you may never get it back.
Speaker 6 (32:55):
It's like anything else.
Speaker 5 (32:57):
But you need to know that you're not gonna be
able to get these dollars back if something s happened
in your life, So make sure it's money that you
can tuck away for a while and forget about. On
the upside, returns can be really really attractive. The more
risk it take, the more return you can get. So
if it's something you believe in, then then it could
be worth it look for a track record. How much
transparency are you gonna get are they Are they giving
you a clear document? Is there a perspectives behind this
(33:19):
or are they simply asking you for a check that
they're going to invest somehow some way. You really want
to be sure that you've covered your bases in terms
of knowing what you're gonna what you're gonna get into here.
But at the same time, you know it can be
a great opportunity, so you know, look, go in with
wyse wide open. But if it looks like a good opportunity, well,
one other thing, if there's real estate involved that that
usually makes it even better. If you can own the
real estate of whatever this business sits on, that can
(33:41):
make you a little more protected because you'll have at
least a fallback on whatever the value of that is. Clearly,
ask whether the real estate underneath the business, if that's
the case, exists as part of the investment. All right,
Emily Anderson Township. Emily is thinking about retiring abroad, and
she's wondering beyond that lifestyle planning stuff that they're all
excited about, what are the financial pitfalls.
Speaker 6 (34:00):
They should be aware of.
Speaker 2 (34:02):
Well, Emily, I I'd say the first thing to do,
once you narrow it down to, you know, maybe a
couple of different countries that you're considering, get yourself a
good CPA, because you want to look at the tax
laws you know, and how in whatever country you're considering,
and how those dovetails with how those dovetail with US
tax laws, so you don't want any surprises there on
(34:23):
how your income and your capital gains and all that's
going to be taxed. And then I'd say the second
thing to learn a lot about is just the whole
area of property ownership rules and how laws work in
different count you know, countries, because you don't want to
assume you're going to do something and buy something and
then be very surprised about how tax you know or
(34:45):
how ownership rules work in various countries.
Speaker 3 (34:49):
So those would be.
Speaker 5 (34:50):
Yeah, I just I had ahead a client just go
through this, And I've got some thoughts to share for
Emily too, because the questions came up pretty directly. So
as Bob mentioned, Yeah, you still have to pay your
tax returns. Of course you're still filing. Got to take
a look at that. You're gonna want to look into
Medicare as well. Medicare does not cover you outside of
the United States. You're going to need some private international
health insurance or look into the local systems out There
(35:11):
is state planning, inheritance laws. If you've got somewhat complicated
a state, if you've got moving parts to the things
you own and something should happen, make sure your family's
going to be a well situated. You'll want an attorney
in the mix there too. Not to mention currency risk.
You're going to be moving your money in and out
of the country. So lots of things to look into there.
But it sounds exciting.
Speaker 2 (35:29):
No great call out there on the Medicare coverage. That's
obviously a huge thing to consider, all right, Brian, One
more for you, Brian and terras Park.
Speaker 3 (35:36):
Brian talking to Brian here.
Speaker 2 (35:38):
He says, our family has a large life insurance policy
owned inside of trust.
Speaker 3 (35:43):
How often should.
Speaker 2 (35:44):
We be reviewing that policy to make sure it's still
structured properly?
Speaker 5 (35:49):
Well, it depends on where the goal of the policy is.
We don't know what this trust is. This could be
something called an irrevocable life insurance trust, where that's intended
to create in a state where there was none so
a lot of times that's called an islet. An islet
exists only to have a death benefit. Frankly, there's there
are no other assets in it. So that's something you're
going to want to review with a trustee, probably maybe annually.
(36:12):
That seems a little aggressive, but at least every now
and then. Put it that way, and make sure that
the policy inside if that's what this is, is make
sure it's well funded. Really, every insurance policy has cash value.
Should make sure it's got enough gas in the engine.
So I would take a look at that.
Speaker 3 (36:27):
All right.
Speaker 2 (36:27):
Coming up next, how the girlfriend of a famous football
coach is taking advantage of being called.
Speaker 3 (36:33):
A gold digger.
Speaker 2 (36:34):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station.
Speaker 1 (36:40):
Every day, every day we're seeing more products.
Speaker 4 (36:43):
Roll off, see something happens, rescue our nation's capital from crime.
Speaker 2 (36:47):
And every day it's something we thought we would never
see that something social growing, economy crisis.
Speaker 1 (36:54):
For everyday goods continue to decline, peace talks.
Speaker 4 (36:57):
President Bouten invited me is a noble piece press all the.
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Day's happenings, not just another headline right here.
Speaker 1 (37:05):
A lot of good things are happening. Fifty five KRS
the talk station they call them every day Millionaire, every
day listen to Dave Ramsey Rich, people.
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Ask how much broke, people ask how much down and
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Week days at seven started asking how much fifty five
KARC the talk station.
Speaker 2 (37:28):
You're listening to, Simply Money, presented by all Worth Financial.
I'm Bob sponseller alone with Brian James, and I gotta
laugh at.
Speaker 3 (37:35):
That bumper music. Brian.
Speaker 2 (37:37):
It's not every day that a term like gold digger
becomes a potential business asset, but that's exactly what's happening
in the latest twist involving legendary football coach Bill Belichick
and his girlfriend named Jordan Hudson. Brian, before we kick
the things, well, let's just get into it. According to
public filings, I mean, this.
Speaker 5 (37:58):
Is this is America, Bob, It's America. We're here to
make money. We're here to make.
Speaker 3 (38:02):
Money, all right.
Speaker 2 (38:03):
According to public filings, Jordan Hudson, through a company called
TCE Rights Management that she manages, submitted a whole bunch
of trademark applications. First of all, for the whole term
gold digger. She's trying to trademark that to be used
on jewelry and key chains and other things she's got
going on. And I can't help but think the timing
(38:27):
isn't accidental here. Let's get into that whole relationship for
folks that don't know anything about it.
Speaker 5 (38:32):
Yeah, So this country was founded hundreds of years ago
with the idea that we want free enterprise, and free
enterprise is that looks a little different than the founding
fathers imagined it. So Jordan Hudson, twenty four year old
arm Candy of Bill Belichick, has submitted a trademark application
for gold Digger. She's gonna put it on jewelry and
key chains and so forth. And so this really isn't
a one off. There's a bunch of these out there
(38:54):
her company, which I'm guessing there's not much more to
this company than a bunch of trademark applications, but phrases
like no days off the Belichick way and chapel Bill,
get it, chapel Hill, chapel Bill.
Speaker 6 (39:05):
Very clever. Huh.
Speaker 5 (39:06):
She's really trying to build a brand around his name
and his persona down there all for you know, a
stunning beat down by Texas Christian University in his first
first game there, So.
Speaker 6 (39:17):
Not the worst idea, I suppose.
Speaker 5 (39:18):
It just makes me a little sad that this is
kind of how we operate these days. And I really
wonder what their conversations are like at dinner.
Speaker 3 (39:26):
Yeah, I don't know.
Speaker 2 (39:27):
One thing I do know is Bill doesn't need any
more distractions. I mean they actually they absolutely got pummeled
by TCU in Week one and they looked horrible doing it.
So that guy needs to be focused on football and
trying to, you know, get his get their act together
on the field. I mean, kudos to him. She's twenty
(39:50):
four years old, he's seventy one. I'll leave all that there.
It's born of love, Bob. This is all about love, right.
It's a May December love story. Look for it on
Hallmark Channel near you. Okay, Well, I guess there's there's
supposedly some business logic here. Controlling phrases tied to public
figures like Belichick could mean future opportunities for merchandise, media appearances.
(40:16):
It's a calculated strategy. Some insiders say it's amateurish and
question how much, if at all, Belichick's.
Speaker 3 (40:24):
Really involved in this.
Speaker 2 (40:26):
I mean, I saw the video of his little girlfriend
coming to the sideline before the game asking for money
to go to the concession stand. I mean, it all
feels ridiculous to me, but it's a new story and
we thought it'd be humorous to talk about.
Speaker 5 (40:43):
Yeah, I mean it is, at the very least, it's
an interesting business story. At the end of the day,
business is really whatever keeps people's attention for even a
brief amount of time. How are we going to profit
off it? And that is that, unfortunately, is the American way. However,
it doesn't impact how you go to how you go
handle your job and support your family.
Speaker 6 (41:00):
These are things to.
Speaker 5 (41:00):
Point at and laugh at while we all lead responsible,
more scene lives.
Speaker 3 (41:05):
All right, thanks for listening.
Speaker 2 (41:06):
Tune in tomorrow and we'll talk about a real life
example of how a lack of diversification can absolutely crush
a family. You've been listening to Simply Money, presented by
all Worth Financial on fifty five KRC, the talk station.
Speaker 7 (41:21):
There's a lot of discussion about what happened, what didn't happen.
Speaker 1 (41:23):
We're gathering intelligence.
Speaker 2 (41:25):
Gather here, gathering and accumulating the information.
Speaker 1 (41:28):
Lay it out in as much detail as we can
for the very latest on interest rates in the economy
you've been hearing about.
Speaker 2 (41:34):
And trade deal, sanctions on Russia not going away.
Speaker 1 (41:38):
Real share what we know.
Speaker 2 (41:40):
We will share intelligence with views that takes these briefings will.
Speaker 1 (41:44):
Be really clear on the flats throughout the day.
Speaker 2 (41:47):
Continue to gather and share intelligence.
Speaker 1 (41:49):
Fifty five KRCP Talk Stage
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