September 18, 2025 • 41 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian break down the Federal Reserve’s first rate cut since December, what it means for your savings, mortgage, and investments, and why the real question now is: what happens next? They also debate President Trump’s renewed call to end quarterly earnings reports, weighing the pros and cons for investors like you. Then, the guys tackle one of the most important questions in financial planning—how much risk should you really be taking with your money? And as always, they answer your questions on investment property, long-term care costs, managing a family trust, and deferred compensation.
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Speaker 1 (00:00):
Views.
Speaker 2 (00:01):
When it happens, we're coming to you.
Speaker 3 (00:03):
You're going to want to listen to.
Speaker 4 (00:04):
This fifty five KRC the talk station Tonight.
Speaker 2 (00:17):
The Fed lowers interest rates, how to keep golden handcuffs
from locking you into the wrong job, and we answer
your questions. You're listening to Simply Money, presented by all
Worth Financial lumbob sponseller along with Brian James Well. As
we've talked about and predicted for what seems like weeks now,
today the Federal Reserve lowered interest rates for the first
time since December. Brian walk us through what they did
(00:41):
and supposedly why they did.
Speaker 5 (00:43):
It, probably the least surprising surprise in a long time.
FED lowered interest rates by about a quarter of a point.
So this brings the federal funds rate down to four
to four and a quarter percent.
Speaker 1 (00:53):
And the reason for this is why are we lowing rates?
Speaker 5 (00:55):
Not it's too shocking, but labor market conditions are cooling
faster than earlier this year. Underemployment is rising more quickly
than the unemployment rate. Basically, people aren't working enough and
so the Federal Reserve is reacting to that. And we
saw we recently on these airwaves talked about the recent
restatements of the jobs reports and so forth, making it
appear that this decline actually started a little earlier than
(01:18):
we originally thought it did, so kind of made this
rate cut and no brainer tariff passed through is obviously
something that we would suspect maybe he has had an impact,
but it doesn't seems has had as big of an
impact as we would have thought.
Speaker 1 (01:29):
That's been smaller than expected.
Speaker 5 (01:31):
Inflation expectations are relatively anchored, even though we've got all
this trade policy uncertainty out there, so.
Speaker 1 (01:36):
So far, no major surprise is in our surprise today.
Speaker 2 (01:40):
Yeah, I mean, just a reminder on the FED, you know,
dual mandate. They want to keep inflation, They want to
try to get the target inflation rate down to around
two percent, good luck getting it there and there, and
they're interested in keeping us at full employment. And so
the Fed is data dependent on those two items. And
the data has been moving around here long enough or
(02:02):
for a while now. And I understand the whole reluctance
to lower rates because there was a lot of uncertainty
around this tariff policy that is still a moving target,
you know, especially with China. These revisions on jobs. I mean,
we've talked about this. It's it's kind of shocking that
we had to revise down by a million jobs. You
(02:23):
can't blame the FED for that. They're just dealing with
the data that they're handed to them. Hopefully we can
get better and more updated data, you know, as we
go forward. But that's where we are and the impact here.
You know, we want to see mortgage rates come down.
Just as a reminder, short term rates don't necessarily move
(02:44):
that ten year Treasury rate, which is what mortgage rates
are paid to. It will lower rates on our savings
a little bit, you know, these high yield savings accounts
that everybody's been piling into. Those rates are going to
undoubtedly come down a little bit. We have seen mortgage
rates come down a little bit. It just remains to
be seeing what the impact on the actual economy will
(03:05):
be Brian over the next three, six, nine, twelve months,
as we now enter into officially a bias toward lowering
interest rates.
Speaker 1 (03:14):
Yeah, so this is generally a business friendly environment.
Speaker 5 (03:17):
So you know, historically we want to look at the
overall economy and the stock market and all those things
should really prefer lower interest rates. Anything that widens profit
margins is a good thing as far as as far
as the stock market goes anyway. But I think that's
we've already seen that the market has been anticipating us
for a while. As we talk about all the time,
and Andy Stoutter, chief investment Officer, comes on these airways
(03:38):
and discusses you can look at the activity in the
bond market and get an impression of what it's anticipating,
and it has been clearly anticipating this rate cut for
a while now. So that's why there doesn't seem to
be a whole lot of shock as we're as we're
sitting here right now, and it's going to take a
while for this to filter through, you know, just the
same as people out there might be thinking, okay, let's
pay attention. Might be time to refinance that mortgage, but
(03:58):
not yet. There could be more interest rate cuts coming
down the road. Well, it just just remains to be seen.
That's why they go a quarter point at the time,
tap the brakes and tap of the gas a little bit.
Speaker 2 (04:08):
Yeah, that's what's really going to be interesting is how
by how much and how soon the next rate cuts come.
You know, this one today was already priced in the market,
So that's old news. What everybody's going to be looking
at is what do they do next and when? And
you know, it's generally when you lower rates, that's bullish
for the economy, bullish for companies because, let's face it,
(04:29):
anytime the cost of borrowing money comes down, that's good
for companies. It boosts profits. It's particularly good for small
cap companies that tend to have, you know, more and
more debt on their balance sheets. So again remains to
be seen, but it's good to see we're moving in
the right direction. All right. You're listening to Simply Money,
presented by all Worth Financial on Bob Sponseller along with
(04:51):
Brian James. Some other news were following tonight. President Trump
is renewing a call, you know, something he talked about
during his first term, renewing a call to change quarterly
earnings reports, you know, eliminating quarterly earnings in moving more
to a semi annual cadence. Why is he doing this, Brian?
(05:13):
What are the pros and cons of a potential move
like this? As a reminder, the SEC is the ones
that will change the policy on this if they do it.
At all, they decided not to do it back in
twenty eighteen. But let's walk through some of the pros
and cons of, you know, the regularity or cadence of
corporate earnings reports.
Speaker 1 (05:34):
To be clear, this is not policy yet.
Speaker 5 (05:36):
This is just literally a social media post and it
was a post on truth social where he called for
the end of quarterly earnings reports. And President Trump's claim
is that they create unnecessary pressure on companies, create a
lot of extra work for people, and hurt long term
decision making. The rules as they stand now, public companies
are required by the Securities and Exchange Commissions who report
earnings every three months, so there's no choice here. This
(05:57):
includes reports on revenue, profit, future guidance, and other metrics
that so that investors can get a good evaluation of
what a company's worth is. And that's why we always
talk about earning season. Once a quarter, we always talk
about what percentage of companies from the S and P
five hundred reported earnings and what's that looking like. So
the argument for ending them is what he thinks is
that companies might might be forced to make decisions just
(06:19):
to worry about their number every quarter. Right, I got
three months to get a certain number. The analysts have
already said what they think we should do. Now we've
got to find a way to get there, even if
that's not good long term strategy. And there are ample
pieces of evidence of companies having done this kind of thing,
messing around with balance sheets and making things look better
than they are. You can go back to Enron and
find this kind of stuff to react to to just
(06:42):
a quarterly stock valuation. And he doesn't really call this
out just yet, but remember a lot of the compensation
of the leaders of these of our largest public created
companies has everything to do with what the stock price does.
So if somebody is planning on retiring in a year
or two, then they may make decisions based on what
will move the stock in that short amount of time.
I'm not where the stock will be in five years
because of some obligation they took on right now.
Speaker 1 (07:04):
So there's a counter argument.
Speaker 5 (07:05):
To this too, though, Bob so transparency investors, especially on
the retail side. Investors rely on regular updates to understand
what it is that they own. Pension funds for one
k's endowments, the big money in the world. Everybody needs
timely info to make allocation decisions. So there's pros and
cons of this, aren't there.
Speaker 2 (07:22):
There definitely are, and I mean I look back at
the history of how this has worked. I mean, this
all goes back to the Securities and Exchange Act of
nineteen thirty four, where companies were required to file annual
audited financial statements and ten k's. So we started with
annual earnings reports and audited financial statements back in nineteen
(07:42):
thirty four, and then we did move to semi annual
reporting requirements in nineteen fifty five. It wasn't until nineteen
seventy that we moved to quarterly earnings announcements, and we've
been operating on that basis ever since. I think one
argument in favor of this change. I think the president
(08:03):
might be thinking about this. Who knows what he's thinking
about or who's talking to him about this. But you know,
many private companies, and let's face it, there are fewer
and fewer companies choosing to go public nowadays, and the
cost and the complexities of these earnings requirements reporting requirements
is part of the reason. So private companies don't have
(08:24):
to operate this way. They often cite it as an
advantage because as you pointed out, Brian, if you're a
business owner, you might like the flexibility of not having
to hit those arbitrary earnings targets and announce everything you
know every ninety days. I I side with keeping it
where it is because in the absence of pension plans now,
(08:46):
so much of people's retirement plans are based on you know,
everyone's invested in the stock market, whether they whether they
realize it or not. And I think these good quarterly
report cards tamp down a bit of volatility. And I
think transparency is a good thing, and especially for people
(09:07):
that are relying on their investment portfolios, their iras four
one ks to finance their retirement income. I think I
personally think more information on a more regular basis is good.
Speaker 5 (09:20):
That's my opinion. What about you, well, I like, as
you know, I like to look at history. Have we
done anything like this before? And can we what can
we learn from that? All the good news is here
we can that's fairly recent. So in twenty thirteen the
European Union adjusted their requirements and after about two years
the most companies had implemented this. Most of the states
of the European Union, and so since then we've been
(09:42):
able to look at some academic studies to see what
the impact has been, and there was a twenty twenty
four paper that studied effects in Germany and what they
reported was, here's the fancy academic speak, increased information asymmetry
and decreased firm value, which is basically kind of what
you just said. Less information out there means it's a
little less clear what a firm is worth. Yeah, and
it really impacted the bigger, more visible stocks. Now we
(10:05):
love our s and P five hundred around here, so
that would be detrimental a little bit to that we
could report and kind of reduces the quality of information
and makes those markets less efficient with less information out there.
And then so what they had hoped for though through
this where was cost savings for smaller mid sized companies,
less burden of preparing these quarterly reports, and reduction of
these short termism, you know, pressures, less being less forced
(10:27):
to meet these quarterly earnings benchmarks, more room for longer
term planning. This is harder to quantify, but it's part
of the legislative logic as of why they made that decision.
So it doesn't seem to have done any permanent, major damage.
But at the same time, it is introduced some questions,
and it doesn't does not seem to have been the
slam dunk that maybe some would hope it would be.
Speaker 2 (10:47):
Yeah, And as a reminder, you know, countries like the
UK and as you mentioned Jerremany, you know there are
other members of the European Union that do operate on
a semi annual basis. So this is not unprecedented stuff.
It's ill in the discussion phases. And as we talk
about all the time, the president likes to just comment
on things on social media. Who knows what's gonna come
(11:09):
of it. It was looked at, it was looked at closely.
During his first term, the SEC decided not to make
any changes. Who knows if they're going to make any changes,
you know this time around. Here's the all Worth advice.
Any move to end quarterly reporting could represent a sizable
shift in how public companies operate and how we all invest.
(11:30):
Coming up next, the top factors for calculating your risk tolerance.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 6 (11:41):
Tyler Dame Troubertson President Trump's state visit to the United Kingdom.
Speaker 7 (11:45):
Adam Chef, you are political but food the daisy use
democrats looking.
Speaker 1 (11:50):
He's on to shout down the government.
Speaker 8 (11:51):
Fifty five KRC the talk station.
Speaker 9 (11:54):
All Worth Financial a registered investment advisory firm. Any idea
is presented during this program 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 (12:13):
You're listening to Simply Money, presented by all Worth Financial
un Bob Spondseller along with Brian James. If you can't
listen to Simply Money every night, subscribe and get our
daily podcasts. And if you think your friends or family
could use some financial help, tell them about us as well.
Just search Simply Money on the iHeart app or wherever
you find your podcast. Straight ahead of six forty three,
(12:35):
we're going to talk about selling a business, passing wealth
to your kids, and even cutting taxes through charitable giving.
We'll dig into your biggest planning questions coming up. Every
investment plan rests on one big question, how much risks
should you take? It's not about chasing the highest returns,
or even avoiding every little you know bump in the market.
(12:58):
It's about striking the right balance, one that gives you
the best shot at meeting your goals without losing sleep
along the way. Brian, this is a great topic and one,
let's face it, every investor, I don't care what your
net worth is, what your stage in life is, what
your time horizon is between now and when you retire.
(13:19):
You know everybody is dealing with risk tolerance in some
shape or form. Let's get into some of the decisions
or factors that should go into determining what your risk
tolerance should be.
Speaker 5 (13:33):
So when we build a plan, one of the big factors,
when anybody builds a plan, one of the big factors
is that we don't know. We can't control what the
investments are going to do. We can take a stab
at it, but it's definitely not going to be a
smooth ride. There's just no real way to do that
unless you're going to remove risk entirely, in which case
you normally introduce the risk of inflation. If you're not
gonna let your money grow, then inflation could outpace you,
(13:55):
and a lot of people have learned that the hard
way in the past three four five years. So what
we like to do is make sure let's let's make
sure our assumptions are sound anyway, right, what is your
lifestyle like, what do you spend? Don't think income, think spending.
What are the resources that you have? You have your
your investment savings, your four oh and cas, your iras
and all that kind of stuff. And then you have
what I like to call o PM other people's money
(14:15):
that is your Social Security checks, maybe you've got a pension,
some other you know, some other thing generating income that
is not coming out of your pile of money. Everybody
has piles of money and streams of income. The objective
is to figure out how to make all that blend together.
So our piles of money, of course have to be
invested somehow, some way. That's where the art comes in,
and the financial planning is very, very much more art
(14:37):
than science because we're dealing with human emotions and unpredictable markets.
You cannot find a situation where A plus B always
equal C.
Speaker 1 (14:43):
Sometimes it equals potato.
Speaker 5 (14:45):
So here's one way we look at risk objective risk
tolerance with what the numbers say you can afford to risk.
This is set aside your emotions, what what's what? What
is the breaking point of your portfolio? This is basically
called a stress test. In other words, if if we're
in asted super aggressively, you might have lost you know,
twenty twenty five percent in a two thousand and eight
or heck even at twenty twenty two.
Speaker 1 (15:06):
Can your plan take that kind of hit? Because those
aren't that common.
Speaker 5 (15:10):
There's only five years where the S and P five
hundred lost more than twenty percent, but they do happen.
We've had two of them in the last couple of decades.
So can your plan handle a hit like that? And
that's kind of the first step is what's kind of
what's the book and what's the extreme? And then you
can move on to the next the next couple risk
tolerance scenario. So what what would you consider after that?
Speaker 1 (15:29):
Bob Well?
Speaker 2 (15:30):
I consider what your portfolio needs to earn in order
to meet your financial goals within reason, you know. So
sometimes we'll have people in that you know, have a
retirement income goal, and when when we add up and
run the plan based on you know, in the way
you put it, piles of money, the only way those
(15:51):
piles of money and income streams are going to make
it all work is if we get x amount of return,
which requires x percentage of money invested in the store.
And when you have that discussion sometimes with people that
are like, wow, I don't want to be that invested
in the stock market, Well, there's a trade off for everything.
If you're if you invest more conservatively and you assume
(16:12):
return over the next ten, twenty thirty years goes down,
the plan may or may not work, and then people
have a decision to make. Am I willing to spend
less money in retirement? So you know it's it's you
have to take, depending on your circumstances in order to
have some growth that outpaces taxes and inflation. You know,
(16:32):
that's the discussion you got to have, is we got
to have a certain amount of return to make all
this work. Some people are comfortable with that, some people
are not from an economic standpoint.
Speaker 5 (16:42):
Yeah, So let's move on to another factor that a
lot of people think can be somewhat black and white. Well,
it's my age. I remember when I started this industry,
it used to be you need to have your age
as a percentage in bonds. In other words, older you were,
the more of a percentage in bonds you had to have.
That was terrible advice really starting twenty five years ago
when we began this march to almost zero percent on
(17:04):
the on the interest rates prior to that, for the
for the decades prior to that, it was pretty good.
Speaker 1 (17:09):
Advice worked out pretty well.
Speaker 5 (17:10):
But once we decided that the stock market was where
we wanted to focus as a society and we want
everything to be business friendly, which really started with Ronald Reagan,
and then we pushed interest rates down to what wound
up being nothing over the past, you know, four or
five years ago, excuse me, But then at that point
that that type of advice doesn't make sense. I don't
believe that age is much of a factor without considering
(17:33):
other things.
Speaker 1 (17:34):
So I'll give a quick example.
Speaker 5 (17:35):
I've got a client who is they're in their late seventies,
spouse passed away, and there's a death benefit they landed
in a insurance company's sort of savings account. Insurance companies have,
they'll hang on to the death benefits and they'll pay
decent rates on those savings, literally like five percent.
Speaker 1 (17:50):
And this goes back a while too.
Speaker 5 (17:51):
This happened about five years ago, so we have invested
her portfolio here, She's all stocks. That makes no sense
for somebody who's in their seventies if you look at
it just through that vision of just this one couple
of accounts that we've got here. And I do get
question every now and then, why does this person, you know,
by our compliance team who's doing its job to say,
why do we have this elderly person in a very
aggressive portfolio? And I'll say, because I have a plan
(18:12):
in place, and because I don't consider that pile of
money her safe money. Her safe money is held elsewhere
in a rate that we can't get for her because
the only way you can get it is.
Speaker 1 (18:20):
To lose a spouse.
Speaker 5 (18:21):
So her bond portfolio quote unquote is the death benefit
proceeds for insurance policy. Her growth portfolio is the money
we have here. It looks funny when you just look
at the one account. It's very aggressive, but it's logically
thought out. So those types of situations. Age is not
necessarily a black and white indicator of you must do
X because you are y years old.
Speaker 1 (18:39):
All right.
Speaker 2 (18:40):
We talked about, you know, having a risk tolerance profile
that matches your financial goals. Here's the big one. We
need to talk about. And Brian, this comes up all
the time. Is just subjective risk you yourself just said
this is more of an art and a science. But
this is the discussion we got to have because even
if the spreadsheets and the numbers and the planning all
makes sense, we're still we're still dealing with human emotion
(19:03):
when things ultimately go sideways or down in the market,
and people react differently when they see their portfolio go down,
and they might have agreed to a certain risk tolerance,
but then when the you know what hits the fan,
that's when the phone calls start. And Brian, that's where
we have to talk about feelings and likely reaction to
(19:24):
market declines, because if that phone call comes in and
somebody says, hey, get me out, I can't take it anymore,
move me to cash. In my opinion, we have not
or a good fiduciary advisor has not done their job
on the front end in discussing how folks are likely
to react in a down market. And that's a key
(19:46):
part of what we do as financial advisors.
Speaker 5 (19:49):
Stress test, stress test, stress test, set up your plan
in a way that says, if nothing bad ever happens again,
here's what things should look like. That's not going to happen.
We all know that's how life works. That's that's why
it's important to take a look at it. So once
you've got your your hunky dory everybody's happy plan, then
right next to it, set it up again and run
your numbers again and assume somehow that twenty five percent
(20:09):
of your financial network just went poof. That should simulate
the worst markets we've ever seen. For example, if you're
somebody retired at the end of twenty one, that's what
you would have felt.
Speaker 2 (20:16):
See if it still works. Success doesn't always equal satisfaction.
How to move past a career plateau? Coming up next.
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station.
Speaker 1 (20:30):
What's happening us military versus the cartel?
Speaker 2 (20:34):
What Congresswoman Omar.
Speaker 10 (20:35):
Said exciting violence against conservators.
Speaker 1 (20:38):
The day's huge, So we.
Speaker 8 (20:39):
Have a deal on tiktops Robert fifty five KRS the
talk station, iHeartRadio station.
Speaker 2 (20:50):
You're listening for Simply Money presented by all Worth Financial
on Bob Sponseller along with Brian James, joined tonight by
our career expert Julie Bauki and Julie, thanks as always
for taking some time with us tonight and interesting topic
we're going to cover tonight career plateaus. What to do
when we're feeling successful in our job or in our career,
(21:12):
but we're no longer feeling challenged. How do you navigate
people through that situation?
Speaker 10 (21:18):
Julie, You know, there are a lot of pivot points
in our careers, like decision points where we feel maybe
something is off. We want more, we want different, we
want less, and those are natural moments in our career.
The problem is that we've been taught to just sort
of swallow them down and continue on and make the
(21:41):
best of what we have. I think the most the
most important, smartest thing to do when it comes to
your career is when you're starting to feel like my
career is at a plateau. The first thing you need
to do is figure out why. What is it specifically
that has plateaus if you are if it's things like income,
if level of responsibility, if it's the depth of the
(22:05):
challenging projects or not that you get exposed to. You
have to really articulate what it is that is plateaued
and before that you have to do that before you
can figure out what to do next. Once you can
identify the source of your discomfort, it's much easier to
identify and so pinpointing that, Okay, you know I used
(22:27):
to like this, This used to work for me, it's
not now, or I feel like something's changed. The most
important thing to do at that point is to get
into self discovery and investigative mode. What has changed. It
could be something at work. It could be a new leader.
It could be the company is changing customers or targets
and it's not as fun for you anymore. But it
(22:49):
also could be just a yearning from a real career
standpoint to do something different. Maybe you've reached the end
of the rope or the top of the ladder in
what you do and it's time to do a serious pivot.
So before we take on big moves like that, it's
really important to figure out what's not working for me
today and what am I willing.
Speaker 1 (23:09):
To do about it?
Speaker 5 (23:10):
Hey, Julie, do you find that people get stuck from
a standpoint of well, this has been a good company,
and so whatever I do, it's just out of the
question that I might go somewhere else. I mean it
seems like, yeah, people hide behind it all the time,
and how do you get over that home?
Speaker 10 (23:24):
So I have four there's four pillars of career happiness.
One is you like what you do, second is you're
good at it. The third is you're getting paid in
a way that you can live. And the fourth is
you're in you're doing it in the right place. And
the number one reason people leave their organizations is the
fourth one, which is it's either I don't like the
(23:46):
culture anymore, the mission, I don't like my leader. That's
actually the number one reason in that bucket. And so
so when you are in a situation when you look
around and say I really like it here, you know,
I like what we do, I like my colleagues, I'm
aligned with mission, and it's still great, then you owe
it to yourself to figure out to look around and say,
(24:08):
what is it? What else is available in this organization?
How amight I contribute? How might I take what's on
my plate? And you know, showed it up a little bit.
Maybe that's add something. Maybe it's you know, get involved
in something that's maybe not typically something you're responsible for.
Maybe you get involved on a different team, maybe you
(24:28):
just sort of add something to your overall plate when
you like where you are. I always tell people, let's
always try to figure out if you can fix it
where you are before you change into a culture in
an organization that's completely unknown to you and find that
you might be in the same position or worse.
Speaker 2 (24:49):
Julie, I to me, I think, correct me if I'm wrong.
But it seems that this comes down to communication, you know,
in that scenario you just talk about. And I got
a call yesterday from a young man who's just getting
arted in his career. You know, I happened to coach
him in high school baseball, so we still have maintained
a connection. And he was in a place where he's
just like, hey, I don't know what to do here,
(25:10):
and he's afraid to go talk to anybody about it.
So walk us through the most effective ways to navigate
this from a communication standpoint, Because people sometimes are afraid
to approach their boss, you know, if they express any
displeasure at all, they're afraid of repercussions. How do you
coach people how to broach the subject with folks in
(25:34):
the organization If you're trying to stay at the same
company for all the reasons you just mentioned, but you
have to have a conversation and because things need to change,
how do you navigate that?
Speaker 10 (25:46):
And so I would couch it this way. I would
say something like, I'd like to talk to you about
the work I'm doing, what might be next, what things
I'm interested in doing beyond what I'm doing now? Can
we sit down and talk about that? And so you
want to open it up not as a I'm not happy,
what can you do for me? Anything that smacks of
(26:06):
that is when we start calling someone entitled. So it's
more about how can I have a mutually beneficial conversation
about my role in this organization and what I see
myself doing different different things or doing more or less
of moving forward? And then go to that meeting, go
to that comp once you set it up like that,
go to the conversation with ideas. Be ready to say
(26:30):
I really feel like I have You know, I spend
a lot of time over here on these kind of projects,
which has been great. I really feel like I know
it really really well. What I'd really love to do
moving forward if we can find an opportunity, I'd like
to do this, or what marketing is doing is really
interesting to me. So you want to go in with
a spirit of how can we work together to help
(26:53):
me direct my skills and abilities and my experience here
at something to continue helping this organization for versus I'm
not happy? What should I do? Because that's where you
are offloading your career management onto somebody else, and that's
not fair to them and it's also not.
Speaker 5 (27:10):
Realistic, Julie, So I want to I want to go
slightly different direction here because I think a lot there's
a lot of drum beats out there over the last
couple decades about you know, pulling yourself up by your
own bootstraps and being your own boss and all that
kind of stuff. How often do you run across people
for whom they're there may be leaning toward I want
to break away and start my own thing. You know,
(27:31):
we're fortunate here in Cincinnati. We have a lot of
fortune five hundred companies around us, so we're all somebody's
employee and that's a wonderful structure that we have. But
do people often come to you and say, forget it,
I just want to bust out and do my own thing.
And what is your advice for them? Because that can
be an exhilarating and terrifying step.
Speaker 10 (27:46):
It is so so picture. You've got two buckets, and
one of them is everything in that bucket is your
career and your job right now, and the other bucket
is what you want to build. First of all, you've
got to get in tempty you've really got to get
clarity on what you want to do, what the market
is for it. All that due diligent stuff, and what
we counsel people on is once you've figured out that
(28:07):
there is a market and there is a need for it,
just know that it's going to take a lot longer
than you think to do it. Just because it's a
good just because there's demand, just because it's a good idea,
it doesn't mean people will pay for it. And a
lot of entrepreneurs have found that out. And so, how
can you test while you're still keeping one eye on
keeping your job, How can you test your ideas? How
can you connect with people in a similar or adjacent
(28:31):
space to get their ideas, and so that you are
slowly filling the second bucket, and at that point you'll
know you will if you get to the point where
you gather knowledge, information, resources, you're testing your theory. You're
starting to get some real interest people who are willing
to pay you. Then at some point you've got to
let go. You've got to dump out that other bucket.
Speaker 2 (28:52):
Great advice as always, Julie, thanks again for spending time
with us. Tonight. You're listening to Simply Money, presented by
all Worth Financial on fifty five KARC the Talk Station.
Speaker 1 (29:02):
News when it.
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Happens, breaking news tonight.
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Speaker 6 (29:29):
As a home who wants to be rich, we call
them every day millionaires every day listen to Dave Ramsey.
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both brother,
okay broke people ask how much down and how much
(29:53):
a month?
Speaker 7 (29:54):
Tonight at seven oh six started asking how much on
fifty five DRZ the Talk Day.
Speaker 2 (30:05):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob Sponsller along with Brian James.
Speaker 1 (30:11):
Do you have a.
Speaker 2 (30:11):
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, John
in Columbia Tusculum leads us off tonight Brian. He says,
I have a piece of land in Florida that I
never built anything on, even though I thought I would.
(30:32):
Can I claim it as an investment property once it sells?
Speaker 5 (30:37):
John, congratulations on sitting on something that has been a
pretty good thing to own over the past couple of decades.
So some people might be listening to this question saying, well,
of course it's an investment property.
Speaker 1 (30:46):
What else would that be?
Speaker 5 (30:47):
Well, that's actually a certain status according to the IRS.
Speaker 1 (30:50):
And the reason people.
Speaker 5 (30:51):
Ask about this is because if it is classified as
investment property, it could potentially count for tax strategies like
a ten thirty one exchange. So Jo John doesn't say
exactly what he wants to do with the proceeds, but
if he's planning on buying another piece of property, he
could potentially avoid the capital gains and roll them forward
into the next purchase. But so to count as investment
(31:12):
property was really what John's asking, you have to show
that it was held for investment or business purposes, not
just personal use. So that means if as long as
you never lived on it, rented it, or used it
personally for anything, just owned it and sat on it
for a while, that is usually good support for calling
it an investment. That means it would be subject to
capital gains tax. If you owned it for more than
a year and you sold it for more than you
(31:32):
bought it for, then you're going to pay fifteen well,
possibly zero, fifteen percent or twenty percent depending on your income,
most likely fifteen percent. There are no special deductions in
this case. Unlike a rental property. There's no depreciation because
raw land is not depreciable, and the documentation matters.
Speaker 1 (31:46):
Make sure you have.
Speaker 5 (31:47):
All your records before you pull the trigger on this.
But yes, the answer to your question, a long answer
is simply yes. So with that, We'll move on to
Lisa Florence. Lisa and Florence, why don't you just say that, Brian,
because the sound of my own voice, Bob but interrupting me,
I'm pretty so Lisa and Florence.
Speaker 1 (32:08):
Uh, she's in a good mood.
Speaker 5 (32:09):
She says, we're healthy today, but I've seen friends drained
by long term care costs.
Speaker 1 (32:12):
What if we end up burning through our savings just
to survive? How would you advise for Bob?
Speaker 2 (32:16):
Well, Lisa, it's I'll answer your question. If you end
up burning up through all your savings just to survive,
you're gonna end up on Medicaid, which is not a
desirable situation for for folks to find themselves in, you know,
if it can be avoided. So it sounds to me,
Lisa like you need to sit down and just you know,
have a financial plan done for you by a good
(32:38):
fiduciary advisor, and you got to balance, you know, should
long term care insurance be part of our plan to
ensure that risk? Can you afford to self ensure? You know,
run some numbers based on probabilities. We can't predict all
potential outcomes here, but if you if you run a
good financial plan and sit down with a good advisor.
(33:00):
Chances are you're gonna be able to come up with
some kind of a good solution better than just allowing
things to drain, as you said, and then be you know,
rely on medicaid to survive. So that's my answer, Lisa,
sit down and look at some numbers and do a
good financial plan, all right, William and Mason, He says,
I'm trustee of our family's estate. Honestly, I'm overwhelmed. How
(33:24):
do I make sure I'm carrying out my parents' wishes
without making mistakes that could split the family apart. This
sounds like a tough situation.
Speaker 5 (33:33):
Brian, Yeah, William, you're in a little bit of a
tough spot. But it's not uncommon. This is really a
very common thing because there's a lot of pressure and
being that trustee, you know, sometimes feels like you're walking
on a tightrope and you could step off the wrong
way to either side and hank somebody off in the family.
So make sure, first off, make sure you understand what
the job is not just the title. Being the trustee
isn't really just having the final say. It's really about
(33:55):
carrying the trust exactly as written. You're not the person
who has the final say. That was the grants to
set up the trust in the first place. Your job
is simply to execute what mom or dad or whoever
else wrote down on paper for the family to respond
to when they ultimately passed on. So here in the
tri state courts treat for trustees as fiduciaries, which means
you are legally bound to put beneficiaries interests before your own.
(34:16):
So you do have the backing of the court to
do these kinds of things. Document everything, write down everything,
make sure everybody is transparent, where did every penny go?
And so on and so forth, and try to stay neutral.
That's hard to do, but it doesn't take much for
siblings to feel slighted. That is, if there's something in
that trust that that makes a sibling feel like they're
less than or something like that, that's going to be
(34:36):
more between mom or dad and the sibling than it
is you. You are simply executing on that document, so
feel free to ask for help. You can always go
out and hire an attorney to help you act as
a co trustee. That is your right as a trustee
of a trust. You can hire outside counsel. If you
need to do that, do it. But anyway, important job
and we wish you luck. William trying to get that
(34:57):
taken care of. Robert and Terris Park. So he's on
the board sort of a small private company and he
has invested his own money heavily alongside of it.
Speaker 1 (35:04):
How did he wants to know?
Speaker 5 (35:05):
How does he protect himself as if the company should
run into legal or financial trouble.
Speaker 2 (35:09):
Bob, Well, Robert, you got two you know, kind of
separate topics here. One the legal liability. I'm going to
assume that this company is structured as an S corp,
C corp, you know, limited LLC, something like that, some
kind of corporate structure. Most of the time, that's going
to protect you from any personal legal liability. The liability
(35:31):
will be, you know, limited by the assets of the company.
You can get umbrella protection, umbrella lit of liability policy
that we recommend everybody get, you know, to protect yourself.
But I would be less concerned about the legal liability
in this case and more about the diversification of your
long term financial plan and retirement plan. You know, you
(35:54):
just want to make sure you don't put too many
eggs in one basket here, because you know, things can
happen to a small private company and you know, just
just take a look at it and make sure you diversify.
So not a lot of information to work with here,
but those would be my my two answers right off
the cuff here, all right, David and Blue ash quickly here,
(36:16):
Brian he says, I'm a senior executive with two million
dollars in deferred compensation. The payout options are overwhelming. How
do I choose how to take this deferred comp without
accidentally creating a huge disaster from a tax standpoint.
Speaker 5 (36:30):
Yes, I've got a thirty seconds to get you through this.
But deferred comp and what that means, deferred comp is
not forever tax free. It's a timing tool. You are
entitled to this compensation, but you've chosen to defer it.
Therefore it can continue to grow and then get taxed
down the road. So a lot of plans will let
you choose lump versus installment. A lump can mean a
huge TAXI. You're gonna want to be careful with that.
(36:50):
Installments can smooth it out over retirement years. To make
sure you understand how that math works, Hire a fiduciary
advisor to help you do it if you don't.
Speaker 2 (36:58):
Coming up next, Brian has his Bottle Lawn on how
to adjust your thinking from an investment standpoint. Now that
we appear to be moving in an interest rate declining environment,
you're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station, Mark Levin.
Speaker 3 (37:16):
Probably the people who should be listening aren't, but there
are a lot of people who tune in by accident.
Then they start listening. I get this wherever I go listen.
I listened for a week. I listen to two.
Speaker 1 (37:25):
It said I like this guy. I like what he
has to say.
Speaker 8 (37:27):
Mark Levin Tonight at ten oh six on fifty five
KRZ the talk station.
Speaker 10 (37:33):
So worried that next month I have to choose between
groceries for my kids or gas for my car.
Speaker 8 (37:37):
Talk about it here fifty five KRZ, the talk station.
Speaker 2 (37:45):
You're listening to Simply Money, presented by all Work Financial
on Bob's sponsller along with Brian James. All right, now
that interest rates have finally started to come down, Brian,
I know that high caliber brain of yours is spinning,
and you've got all kinds of thought on how that
might impact how we invest lay it on us tonight.
Speaker 1 (38:03):
Both cylinders firing at high power, bob, all two of them.
Speaker 5 (38:07):
But yeah, so so different thinking is what we need
to be doing when we're in a when we move
to different environments, and and that's true today as it
ever was. So what's what we're looking at yet now
is saving eiels are gonna fall when we're in a
declining rate environment. You're gonna see these wonderful high yield
savings accounts that you've been getting four four and a
half percent on those are going to drop. Don't be
(38:28):
shocked or disappointed when when it happens, it's just going
to because those are driven by interest rates as much
as mortgage rates are. Speaking of that debt will also
become cheaper, but timing is going to be important. So
if you have an existing variable rate debt, that's going
to adjust pretty quickly, so like a home equity line
of credit something like that, you can be a little
bit happy because those that interest rate is going to
(38:48):
go down. If you are in that situation paying off
a heelock home equity line of credit, then what you
might consider doing is is don't change your payment. Whatever
payment you were making obviously fits the budget because you've
been making it, So keep making that same payment and
you'll pay that debt down even sooner, and so you
can also for fixed debt. Of course, now we're back
in refinancing eras where we want to think about what
(39:11):
are we paying now? And if I go and refinance
this mortgage, what kind of savings can I take off
of that? And you might even consider perhaps if if
rates move enough. You know this this takes a little
bit of math, but if rates move enough, you might
drop from a thirty year to a fifteen year, and
who knows, that could actually push your payment up, which
seems counterintuitive. But maybe if you since you got that mortgage,
perhaps you've gotten some raises, maybe the mortgage is three
(39:33):
years old or something, and you're making a little more money,
there's more spendable cash. Well, you can take advantage of
that with the least lower interest rates and possibly go
ahead and take advantage of the higher income you have
and pay that whole thing off sooner by going from
a thirty to a fifteen or something like that. But
the thing to I think really focus on is what
do you need and what is out there that you
(39:54):
can take advantage of. And don't get too worried about
the fact that interest rates are falling. You should have
of investments on the other side of this where lower
interest rates are beneficial. So you've got a stock portfolio,
something that's intended to growth for growth that is going
to benefit from this as well, So just make sure
you rebounce that portfolio. It's going to make changes to
the bond side of your portfolio as well. You want
(40:15):
to own different kinds of bonds in a declining rate environment.
So it's time to take a look at things you
may not have looked at in a while. What about you, Bob,
what would you be advising your clients at this point?
Speaker 2 (40:23):
Yeah, I think the thing to look at here is
what happens to the longer end of the curve and
when does it move And I'm talking about five year,
ten year, thirty year yields. That's what really will determine.
You know, maybe a change in strategy, one little change
in short term rates doesn't necessarily facilitate you know, major
(40:44):
changes in your portfolio. You want to take a look
at the trend of rates and then you know that
allows you to make some bigger moves that might have
more impact on the things Brian talked about. But it's
time to look at these things, and it's time to
sit down with your advisor and get out in front
of what next steps might look like. Thanks for listening.
You've been listening to Simply Money, presented by All Work
(41:05):
Financial on fifty five KRC, The Talk Station, Mark Levin.
Speaker 3 (41:11):
We Americans, we patriots, are irrational people, a reasonable people,
the people who know good from either right from wrong.
We also know hustlers and Marxists and fascists in Islamis
who endanger our country every damn day. We're destroying our
culture into civil society, who are breeding a youth that
hates America and embraces the wrong thing.
Speaker 8 (41:29):
Mark Levin tonight at ten oh six on fifty five KRC,
The Talk Station.
Speaker 3 (41:35):
You know
Views.
Speaker 2 (00:01):
When it happens, we're coming to you.
Speaker 3 (00:03):
You're going to want to listen to.
Speaker 4 (00:04):
This fifty five KRC the talk station Tonight.
Speaker 2 (00:17):
The Fed lowers interest rates, how to keep golden handcuffs
from locking you into the wrong job, and we answer
your questions. You're listening to Simply Money, presented by all
Worth Financial lumbob sponseller along with Brian James Well. As
we've talked about and predicted for what seems like weeks now,
today the Federal Reserve lowered interest rates for the first
time since December. Brian walk us through what they did
(00:41):
and supposedly why they did.
Speaker 5 (00:43):
It, probably the least surprising surprise in a long time.
FED lowered interest rates by about a quarter of a point.
So this brings the federal funds rate down to four
to four and a quarter percent.
Speaker 1 (00:53):
And the reason for this is why are we lowing rates?
Speaker 5 (00:55):
Not it's too shocking, but labor market conditions are cooling
faster than earlier this year. Underemployment is rising more quickly
than the unemployment rate. Basically, people aren't working enough and
so the Federal Reserve is reacting to that. And we
saw we recently on these airwaves talked about the recent
restatements of the jobs reports and so forth, making it
appear that this decline actually started a little earlier than
(01:18):
we originally thought it did, so kind of made this
rate cut and no brainer tariff passed through is obviously
something that we would suspect maybe he has had an impact,
but it doesn't seems has had as big of an
impact as we would have thought.
Speaker 1 (01:29):
That's been smaller than expected.
Speaker 5 (01:31):
Inflation expectations are relatively anchored, even though we've got all
this trade policy uncertainty out there, so.
Speaker 1 (01:36):
So far, no major surprise is in our surprise today.
Speaker 2 (01:40):
Yeah, I mean, just a reminder on the FED, you know,
dual mandate. They want to keep inflation, They want to
try to get the target inflation rate down to around
two percent, good luck getting it there and there, and
they're interested in keeping us at full employment. And so
the Fed is data dependent on those two items. And
the data has been moving around here long enough or
(02:02):
for a while now. And I understand the whole reluctance
to lower rates because there was a lot of uncertainty
around this tariff policy that is still a moving target,
you know, especially with China. These revisions on jobs. I mean,
we've talked about this. It's it's kind of shocking that
we had to revise down by a million jobs. You
(02:23):
can't blame the FED for that. They're just dealing with
the data that they're handed to them. Hopefully we can
get better and more updated data, you know, as we
go forward. But that's where we are and the impact here.
You know, we want to see mortgage rates come down.
Just as a reminder, short term rates don't necessarily move
(02:44):
that ten year Treasury rate, which is what mortgage rates
are paid to. It will lower rates on our savings
a little bit, you know, these high yield savings accounts
that everybody's been piling into. Those rates are going to
undoubtedly come down a little bit. We have seen mortgage
rates come down a little bit. It just remains to
be seeing what the impact on the actual economy will
(03:05):
be Brian over the next three, six, nine, twelve months,
as we now enter into officially a bias toward lowering
interest rates.
Speaker 1 (03:14):
Yeah, so this is generally a business friendly environment.
Speaker 5 (03:17):
So you know, historically we want to look at the
overall economy and the stock market and all those things
should really prefer lower interest rates. Anything that widens profit
margins is a good thing as far as as far
as the stock market goes anyway. But I think that's
we've already seen that the market has been anticipating us
for a while. As we talk about all the time,
and Andy Stoutter, chief investment Officer, comes on these airways
(03:38):
and discusses you can look at the activity in the
bond market and get an impression of what it's anticipating,
and it has been clearly anticipating this rate cut for
a while now. So that's why there doesn't seem to
be a whole lot of shock as we're as we're
sitting here right now, and it's going to take a
while for this to filter through, you know, just the
same as people out there might be thinking, okay, let's
pay attention. Might be time to refinance that mortgage, but
(03:58):
not yet. There could be more interest rate cuts coming
down the road. Well, it just just remains to be seen.
That's why they go a quarter point at the time,
tap the brakes and tap of the gas a little bit.
Speaker 2 (04:08):
Yeah, that's what's really going to be interesting is how
by how much and how soon the next rate cuts come.
You know, this one today was already priced in the market,
So that's old news. What everybody's going to be looking
at is what do they do next and when? And
you know, it's generally when you lower rates, that's bullish
for the economy, bullish for companies because, let's face it,
(04:29):
anytime the cost of borrowing money comes down, that's good
for companies. It boosts profits. It's particularly good for small
cap companies that tend to have, you know, more and
more debt on their balance sheets. So again remains to
be seen, but it's good to see we're moving in
the right direction. All right. You're listening to Simply Money,
presented by all Worth Financial on Bob Sponseller along with
(04:51):
Brian James. Some other news were following tonight. President Trump
is renewing a call, you know, something he talked about
during his first term, renewing a call to change quarterly
earnings reports, you know, eliminating quarterly earnings in moving more
to a semi annual cadence. Why is he doing this, Brian?
(05:13):
What are the pros and cons of a potential move
like this? As a reminder, the SEC is the ones
that will change the policy on this if they do it.
At all, they decided not to do it back in
twenty eighteen. But let's walk through some of the pros
and cons of, you know, the regularity or cadence of
corporate earnings reports.
Speaker 1 (05:34):
To be clear, this is not policy yet.
Speaker 5 (05:36):
This is just literally a social media post and it
was a post on truth social where he called for
the end of quarterly earnings reports. And President Trump's claim
is that they create unnecessary pressure on companies, create a
lot of extra work for people, and hurt long term
decision making. The rules as they stand now, public companies
are required by the Securities and Exchange Commissions who report
earnings every three months, so there's no choice here. This
(05:57):
includes reports on revenue, profit, future guidance, and other metrics
that so that investors can get a good evaluation of
what a company's worth is. And that's why we always
talk about earning season. Once a quarter, we always talk
about what percentage of companies from the S and P
five hundred reported earnings and what's that looking like. So
the argument for ending them is what he thinks is
that companies might might be forced to make decisions just
(06:19):
to worry about their number every quarter. Right, I got
three months to get a certain number. The analysts have
already said what they think we should do. Now we've
got to find a way to get there, even if
that's not good long term strategy. And there are ample
pieces of evidence of companies having done this kind of thing,
messing around with balance sheets and making things look better
than they are. You can go back to Enron and
find this kind of stuff to react to to just
(06:42):
a quarterly stock valuation. And he doesn't really call this
out just yet, but remember a lot of the compensation
of the leaders of these of our largest public created
companies has everything to do with what the stock price does.
So if somebody is planning on retiring in a year
or two, then they may make decisions based on what
will move the stock in that short amount of time.
I'm not where the stock will be in five years
because of some obligation they took on right now.
Speaker 1 (07:04):
So there's a counter argument.
Speaker 5 (07:05):
To this too, though, Bob so transparency investors, especially on
the retail side. Investors rely on regular updates to understand
what it is that they own. Pension funds for one
k's endowments, the big money in the world. Everybody needs
timely info to make allocation decisions. So there's pros and
cons of this, aren't there.
Speaker 2 (07:22):
There definitely are, and I mean I look back at
the history of how this has worked. I mean, this
all goes back to the Securities and Exchange Act of
nineteen thirty four, where companies were required to file annual
audited financial statements and ten k's. So we started with
annual earnings reports and audited financial statements back in nineteen
(07:42):
thirty four, and then we did move to semi annual
reporting requirements in nineteen fifty five. It wasn't until nineteen
seventy that we moved to quarterly earnings announcements, and we've
been operating on that basis ever since. I think one
argument in favor of this change. I think the president
(08:03):
might be thinking about this. Who knows what he's thinking
about or who's talking to him about this. But you know,
many private companies, and let's face it, there are fewer
and fewer companies choosing to go public nowadays, and the
cost and the complexities of these earnings requirements reporting requirements
is part of the reason. So private companies don't have
(08:24):
to operate this way. They often cite it as an
advantage because as you pointed out, Brian, if you're a
business owner, you might like the flexibility of not having
to hit those arbitrary earnings targets and announce everything you
know every ninety days. I I side with keeping it
where it is because in the absence of pension plans now,
(08:46):
so much of people's retirement plans are based on you know,
everyone's invested in the stock market, whether they whether they
realize it or not. And I think these good quarterly
report cards tamp down a bit of volatility. And I
think transparency is a good thing, and especially for people
(09:07):
that are relying on their investment portfolios, their iras four
one ks to finance their retirement income. I think I
personally think more information on a more regular basis is good.
Speaker 5 (09:20):
That's my opinion. What about you, well, I like, as
you know, I like to look at history. Have we
done anything like this before? And can we what can
we learn from that? All the good news is here
we can that's fairly recent. So in twenty thirteen the
European Union adjusted their requirements and after about two years
the most companies had implemented this. Most of the states
of the European Union, and so since then we've been
(09:42):
able to look at some academic studies to see what
the impact has been, and there was a twenty twenty
four paper that studied effects in Germany and what they
reported was, here's the fancy academic speak, increased information asymmetry
and decreased firm value, which is basically kind of what
you just said. Less information out there means it's a
little less clear what a firm is worth. Yeah, and
it really impacted the bigger, more visible stocks. Now we
(10:05):
love our s and P five hundred around here, so
that would be detrimental a little bit to that we
could report and kind of reduces the quality of information
and makes those markets less efficient with less information out there.
And then so what they had hoped for though through
this where was cost savings for smaller mid sized companies,
less burden of preparing these quarterly reports, and reduction of
these short termism, you know, pressures, less being less forced
(10:27):
to meet these quarterly earnings benchmarks, more room for longer
term planning. This is harder to quantify, but it's part
of the legislative logic as of why they made that decision.
So it doesn't seem to have done any permanent, major damage.
But at the same time, it is introduced some questions,
and it doesn't does not seem to have been the
slam dunk that maybe some would hope it would be.
Speaker 2 (10:47):
Yeah, And as a reminder, you know, countries like the
UK and as you mentioned Jerremany, you know there are
other members of the European Union that do operate on
a semi annual basis. So this is not unprecedented stuff.
It's ill in the discussion phases. And as we talk
about all the time, the president likes to just comment
on things on social media. Who knows what's gonna come
(11:09):
of it. It was looked at, it was looked at closely.
During his first term, the SEC decided not to make
any changes. Who knows if they're going to make any changes,
you know this time around. Here's the all Worth advice.
Any move to end quarterly reporting could represent a sizable
shift in how public companies operate and how we all invest.
(11:30):
Coming up next, the top factors for calculating your risk tolerance.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 6 (11:41):
Tyler Dame Troubertson President Trump's state visit to the United Kingdom.
Speaker 7 (11:45):
Adam Chef, you are political but food the daisy use
democrats looking.
Speaker 1 (11:50):
He's on to shout down the government.
Speaker 8 (11:51):
Fifty five KRC the talk station.
Speaker 9 (11:54):
All Worth Financial a registered investment advisory firm. Any idea
is presented during this program 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 (12:13):
You're listening to Simply Money, presented by all Worth Financial
un Bob Spondseller along with Brian James. If you can't
listen to Simply Money every night, subscribe and get our
daily podcasts. And if you think your friends or family
could use some financial help, tell them about us as well.
Just search Simply Money on the iHeart app or wherever
you find your podcast. Straight ahead of six forty three,
(12:35):
we're going to talk about selling a business, passing wealth
to your kids, and even cutting taxes through charitable giving.
We'll dig into your biggest planning questions coming up. Every
investment plan rests on one big question, how much risks
should you take? It's not about chasing the highest returns,
or even avoiding every little you know bump in the market.
(12:58):
It's about striking the right balance, one that gives you
the best shot at meeting your goals without losing sleep
along the way. Brian, this is a great topic and one,
let's face it, every investor, I don't care what your
net worth is, what your stage in life is, what
your time horizon is between now and when you retire.
(13:19):
You know everybody is dealing with risk tolerance in some
shape or form. Let's get into some of the decisions
or factors that should go into determining what your risk
tolerance should be.
Speaker 5 (13:33):
So when we build a plan, one of the big factors,
when anybody builds a plan, one of the big factors
is that we don't know. We can't control what the
investments are going to do. We can take a stab
at it, but it's definitely not going to be a
smooth ride. There's just no real way to do that
unless you're going to remove risk entirely, in which case
you normally introduce the risk of inflation. If you're not
gonna let your money grow, then inflation could outpace you,
(13:55):
and a lot of people have learned that the hard
way in the past three four five years. So what
we like to do is make sure let's let's make
sure our assumptions are sound anyway, right, what is your
lifestyle like, what do you spend? Don't think income, think spending.
What are the resources that you have? You have your
your investment savings, your four oh and cas, your iras
and all that kind of stuff. And then you have
what I like to call o PM other people's money
(14:15):
that is your Social Security checks, maybe you've got a pension,
some other you know, some other thing generating income that
is not coming out of your pile of money. Everybody
has piles of money and streams of income. The objective
is to figure out how to make all that blend together.
So our piles of money, of course have to be
invested somehow, some way. That's where the art comes in,
and the financial planning is very, very much more art
(14:37):
than science because we're dealing with human emotions and unpredictable markets.
You cannot find a situation where A plus B always
equal C.
Speaker 1 (14:43):
Sometimes it equals potato.
Speaker 5 (14:45):
So here's one way we look at risk objective risk
tolerance with what the numbers say you can afford to risk.
This is set aside your emotions, what what's what? What
is the breaking point of your portfolio? This is basically
called a stress test. In other words, if if we're
in asted super aggressively, you might have lost you know,
twenty twenty five percent in a two thousand and eight
or heck even at twenty twenty two.
Speaker 1 (15:06):
Can your plan take that kind of hit? Because those
aren't that common.
Speaker 5 (15:10):
There's only five years where the S and P five
hundred lost more than twenty percent, but they do happen.
We've had two of them in the last couple of decades.
So can your plan handle a hit like that? And
that's kind of the first step is what's kind of
what's the book and what's the extreme? And then you
can move on to the next the next couple risk
tolerance scenario. So what what would you consider after that?
Speaker 1 (15:29):
Bob Well?
Speaker 2 (15:30):
I consider what your portfolio needs to earn in order
to meet your financial goals within reason, you know. So
sometimes we'll have people in that you know, have a
retirement income goal, and when when we add up and
run the plan based on you know, in the way
you put it, piles of money, the only way those
(15:51):
piles of money and income streams are going to make
it all work is if we get x amount of return,
which requires x percentage of money invested in the store.
And when you have that discussion sometimes with people that
are like, wow, I don't want to be that invested
in the stock market, Well, there's a trade off for everything.
If you're if you invest more conservatively and you assume
(16:12):
return over the next ten, twenty thirty years goes down,
the plan may or may not work, and then people
have a decision to make. Am I willing to spend
less money in retirement? So you know it's it's you
have to take, depending on your circumstances in order to
have some growth that outpaces taxes and inflation. You know,
(16:32):
that's the discussion you got to have, is we got
to have a certain amount of return to make all
this work. Some people are comfortable with that, some people
are not from an economic standpoint.
Speaker 5 (16:42):
Yeah, So let's move on to another factor that a
lot of people think can be somewhat black and white. Well,
it's my age. I remember when I started this industry,
it used to be you need to have your age
as a percentage in bonds. In other words, older you were,
the more of a percentage in bonds you had to have.
That was terrible advice really starting twenty five years ago
when we began this march to almost zero percent on
(17:04):
the on the interest rates prior to that, for the
for the decades prior to that, it was pretty good.
Speaker 1 (17:09):
Advice worked out pretty well.
Speaker 5 (17:10):
But once we decided that the stock market was where
we wanted to focus as a society and we want
everything to be business friendly, which really started with Ronald Reagan,
and then we pushed interest rates down to what wound
up being nothing over the past, you know, four or
five years ago, excuse me, But then at that point
that that type of advice doesn't make sense. I don't
believe that age is much of a factor without considering
(17:33):
other things.
Speaker 1 (17:34):
So I'll give a quick example.
Speaker 5 (17:35):
I've got a client who is they're in their late seventies,
spouse passed away, and there's a death benefit they landed
in a insurance company's sort of savings account. Insurance companies have,
they'll hang on to the death benefits and they'll pay
decent rates on those savings, literally like five percent.
Speaker 1 (17:50):
And this goes back a while too.
Speaker 5 (17:51):
This happened about five years ago, so we have invested
her portfolio here, She's all stocks. That makes no sense
for somebody who's in their seventies if you look at
it just through that vision of just this one couple
of accounts that we've got here. And I do get
question every now and then, why does this person, you know,
by our compliance team who's doing its job to say,
why do we have this elderly person in a very
aggressive portfolio? And I'll say, because I have a plan
(18:12):
in place, and because I don't consider that pile of
money her safe money. Her safe money is held elsewhere
in a rate that we can't get for her because
the only way you can get it is.
Speaker 1 (18:20):
To lose a spouse.
Speaker 5 (18:21):
So her bond portfolio quote unquote is the death benefit
proceeds for insurance policy. Her growth portfolio is the money
we have here. It looks funny when you just look
at the one account. It's very aggressive, but it's logically
thought out. So those types of situations. Age is not
necessarily a black and white indicator of you must do
X because you are y years old.
Speaker 1 (18:39):
All right.
Speaker 2 (18:40):
We talked about, you know, having a risk tolerance profile
that matches your financial goals. Here's the big one. We
need to talk about. And Brian, this comes up all
the time. Is just subjective risk you yourself just said
this is more of an art and a science. But
this is the discussion we got to have because even
if the spreadsheets and the numbers and the planning all
makes sense, we're still we're still dealing with human emotion
(19:03):
when things ultimately go sideways or down in the market,
and people react differently when they see their portfolio go down,
and they might have agreed to a certain risk tolerance,
but then when the you know what hits the fan,
that's when the phone calls start. And Brian, that's where
we have to talk about feelings and likely reaction to
(19:24):
market declines, because if that phone call comes in and
somebody says, hey, get me out, I can't take it anymore,
move me to cash. In my opinion, we have not
or a good fiduciary advisor has not done their job
on the front end in discussing how folks are likely
to react in a down market. And that's a key
(19:46):
part of what we do as financial advisors.
Speaker 5 (19:49):
Stress test, stress test, stress test, set up your plan
in a way that says, if nothing bad ever happens again,
here's what things should look like. That's not going to happen.
We all know that's how life works. That's that's why
it's important to take a look at it. So once
you've got your your hunky dory everybody's happy plan, then
right next to it, set it up again and run
your numbers again and assume somehow that twenty five percent
(20:09):
of your financial network just went poof. That should simulate
the worst markets we've ever seen. For example, if you're
somebody retired at the end of twenty one, that's what
you would have felt.
Speaker 2 (20:16):
See if it still works. Success doesn't always equal satisfaction.
How to move past a career plateau? Coming up next.
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station.
Speaker 1 (20:30):
What's happening us military versus the cartel?
Speaker 2 (20:34):
What Congresswoman Omar.
Speaker 10 (20:35):
Said exciting violence against conservators.
Speaker 1 (20:38):
The day's huge, So we.
Speaker 8 (20:39):
Have a deal on tiktops Robert fifty five KRS the
talk station, iHeartRadio station.
Speaker 2 (20:50):
You're listening for Simply Money presented by all Worth Financial
on Bob Sponseller along with Brian James, joined tonight by
our career expert Julie Bauki and Julie, thanks as always
for taking some time with us tonight and interesting topic
we're going to cover tonight career plateaus. What to do
when we're feeling successful in our job or in our career,
(21:12):
but we're no longer feeling challenged. How do you navigate
people through that situation?
Speaker 10 (21:18):
Julie, You know, there are a lot of pivot points
in our careers, like decision points where we feel maybe
something is off. We want more, we want different, we
want less, and those are natural moments in our career.
The problem is that we've been taught to just sort
of swallow them down and continue on and make the
(21:41):
best of what we have. I think the most the
most important, smartest thing to do when it comes to
your career is when you're starting to feel like my
career is at a plateau. The first thing you need
to do is figure out why. What is it specifically
that has plateaus if you are if it's things like income,
if level of responsibility, if it's the depth of the
(22:05):
challenging projects or not that you get exposed to. You
have to really articulate what it is that is plateaued
and before that you have to do that before you
can figure out what to do next. Once you can
identify the source of your discomfort, it's much easier to
identify and so pinpointing that, Okay, you know I used
(22:27):
to like this, This used to work for me, it's
not now, or I feel like something's changed. The most
important thing to do at that point is to get
into self discovery and investigative mode. What has changed. It
could be something at work. It could be a new leader.
It could be the company is changing customers or targets
and it's not as fun for you anymore. But it
(22:49):
also could be just a yearning from a real career
standpoint to do something different. Maybe you've reached the end
of the rope or the top of the ladder in
what you do and it's time to do a serious pivot.
So before we take on big moves like that, it's
really important to figure out what's not working for me
today and what am I willing.
Speaker 1 (23:09):
To do about it?
Speaker 5 (23:10):
Hey, Julie, do you find that people get stuck from
a standpoint of well, this has been a good company,
and so whatever I do, it's just out of the
question that I might go somewhere else. I mean it
seems like, yeah, people hide behind it all the time,
and how do you get over that home?
Speaker 10 (23:24):
So I have four there's four pillars of career happiness.
One is you like what you do, second is you're
good at it. The third is you're getting paid in
a way that you can live. And the fourth is
you're in you're doing it in the right place. And
the number one reason people leave their organizations is the
fourth one, which is it's either I don't like the
(23:46):
culture anymore, the mission, I don't like my leader. That's
actually the number one reason in that bucket. And so
so when you are in a situation when you look
around and say I really like it here, you know,
I like what we do, I like my colleagues, I'm
aligned with mission, and it's still great, then you owe
it to yourself to figure out to look around and say,
(24:08):
what is it? What else is available in this organization?
How amight I contribute? How might I take what's on
my plate? And you know, showed it up a little bit.
Maybe that's add something. Maybe it's you know, get involved
in something that's maybe not typically something you're responsible for.
Maybe you get involved on a different team, maybe you
(24:28):
just sort of add something to your overall plate when
you like where you are. I always tell people, let's
always try to figure out if you can fix it
where you are before you change into a culture in
an organization that's completely unknown to you and find that
you might be in the same position or worse.
Speaker 2 (24:49):
Julie, I to me, I think, correct me if I'm wrong.
But it seems that this comes down to communication, you know,
in that scenario you just talk about. And I got
a call yesterday from a young man who's just getting
arted in his career. You know, I happened to coach
him in high school baseball, so we still have maintained
a connection. And he was in a place where he's
just like, hey, I don't know what to do here,
(25:10):
and he's afraid to go talk to anybody about it.
So walk us through the most effective ways to navigate
this from a communication standpoint, Because people sometimes are afraid
to approach their boss, you know, if they express any
displeasure at all, they're afraid of repercussions. How do you
coach people how to broach the subject with folks in
(25:34):
the organization If you're trying to stay at the same
company for all the reasons you just mentioned, but you
have to have a conversation and because things need to change,
how do you navigate that?
Speaker 10 (25:46):
And so I would couch it this way. I would
say something like, I'd like to talk to you about
the work I'm doing, what might be next, what things
I'm interested in doing beyond what I'm doing now? Can
we sit down and talk about that? And so you
want to open it up not as a I'm not happy,
what can you do for me? Anything that smacks of
(26:06):
that is when we start calling someone entitled. So it's
more about how can I have a mutually beneficial conversation
about my role in this organization and what I see
myself doing different different things or doing more or less
of moving forward? And then go to that meeting, go
to that comp once you set it up like that,
go to the conversation with ideas. Be ready to say
(26:30):
I really feel like I have You know, I spend
a lot of time over here on these kind of projects,
which has been great. I really feel like I know
it really really well. What I'd really love to do
moving forward if we can find an opportunity, I'd like
to do this, or what marketing is doing is really
interesting to me. So you want to go in with
a spirit of how can we work together to help
(26:53):
me direct my skills and abilities and my experience here
at something to continue helping this organization for versus I'm
not happy? What should I do? Because that's where you
are offloading your career management onto somebody else, and that's
not fair to them and it's also not.
Speaker 5 (27:10):
Realistic, Julie, So I want to I want to go
slightly different direction here because I think a lot there's
a lot of drum beats out there over the last
couple decades about you know, pulling yourself up by your
own bootstraps and being your own boss and all that
kind of stuff. How often do you run across people
for whom they're there may be leaning toward I want
to break away and start my own thing. You know,
(27:31):
we're fortunate here in Cincinnati. We have a lot of
fortune five hundred companies around us, so we're all somebody's
employee and that's a wonderful structure that we have. But
do people often come to you and say, forget it,
I just want to bust out and do my own thing.
And what is your advice for them? Because that can
be an exhilarating and terrifying step.
Speaker 10 (27:46):
It is so so picture. You've got two buckets, and
one of them is everything in that bucket is your
career and your job right now, and the other bucket
is what you want to build. First of all, you've
got to get in tempty you've really got to get
clarity on what you want to do, what the market
is for it. All that due diligent stuff, and what
we counsel people on is once you've figured out that
(28:07):
there is a market and there is a need for it,
just know that it's going to take a lot longer
than you think to do it. Just because it's a
good just because there's demand, just because it's a good idea,
it doesn't mean people will pay for it. And a
lot of entrepreneurs have found that out. And so, how
can you test while you're still keeping one eye on
keeping your job, How can you test your ideas? How
can you connect with people in a similar or adjacent
(28:31):
space to get their ideas, and so that you are
slowly filling the second bucket, and at that point you'll
know you will if you get to the point where
you gather knowledge, information, resources, you're testing your theory. You're
starting to get some real interest people who are willing
to pay you. Then at some point you've got to
let go. You've got to dump out that other bucket.
Speaker 2 (28:52):
Great advice as always, Julie, thanks again for spending time
with us. Tonight. You're listening to Simply Money, presented by
all Worth Financial on fifty five KARC the Talk Station.
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As a home who wants to be rich, we call
them every day millionaires every day listen to Dave Ramsey.
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both brother,
okay broke people ask how much down and how much
(29:53):
a month?
Speaker 7 (29:54):
Tonight at seven oh six started asking how much on
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Speaker 2 (30:05):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob Sponsller along with Brian James.
Speaker 1 (30:11):
Do you have a.
Speaker 2 (30:11):
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, John
in Columbia Tusculum leads us off tonight Brian. He says,
I have a piece of land in Florida that I
never built anything on, even though I thought I would.
(30:32):
Can I claim it as an investment property once it sells?
Speaker 5 (30:37):
John, congratulations on sitting on something that has been a
pretty good thing to own over the past couple of decades.
So some people might be listening to this question saying, well,
of course it's an investment property.
Speaker 1 (30:46):
What else would that be?
Speaker 5 (30:47):
Well, that's actually a certain status according to the IRS.
Speaker 1 (30:50):
And the reason people.
Speaker 5 (30:51):
Ask about this is because if it is classified as
investment property, it could potentially count for tax strategies like
a ten thirty one exchange. So Jo John doesn't say
exactly what he wants to do with the proceeds, but
if he's planning on buying another piece of property, he
could potentially avoid the capital gains and roll them forward
into the next purchase. But so to count as investment
(31:12):
property was really what John's asking, you have to show
that it was held for investment or business purposes, not
just personal use. So that means if as long as
you never lived on it, rented it, or used it
personally for anything, just owned it and sat on it
for a while, that is usually good support for calling
it an investment. That means it would be subject to
capital gains tax. If you owned it for more than
a year and you sold it for more than you
(31:32):
bought it for, then you're going to pay fifteen well,
possibly zero, fifteen percent or twenty percent depending on your income,
most likely fifteen percent. There are no special deductions in
this case. Unlike a rental property. There's no depreciation because
raw land is not depreciable, and the documentation matters.
Speaker 1 (31:46):
Make sure you have.
Speaker 5 (31:47):
All your records before you pull the trigger on this.
But yes, the answer to your question, a long answer
is simply yes. So with that, We'll move on to
Lisa Florence. Lisa and Florence, why don't you just say that, Brian,
because the sound of my own voice, Bob but interrupting me,
I'm pretty so Lisa and Florence.
Speaker 1 (32:08):
Uh, she's in a good mood.
Speaker 5 (32:09):
She says, we're healthy today, but I've seen friends drained
by long term care costs.
Speaker 1 (32:12):
What if we end up burning through our savings just
to survive? How would you advise for Bob?
Speaker 2 (32:16):
Well, Lisa, it's I'll answer your question. If you end
up burning up through all your savings just to survive,
you're gonna end up on Medicaid, which is not a
desirable situation for for folks to find themselves in, you know,
if it can be avoided. So it sounds to me,
Lisa like you need to sit down and just you know,
have a financial plan done for you by a good
(32:38):
fiduciary advisor, and you got to balance, you know, should
long term care insurance be part of our plan to
ensure that risk? Can you afford to self ensure? You know,
run some numbers based on probabilities. We can't predict all
potential outcomes here, but if you if you run a
good financial plan and sit down with a good advisor.
(33:00):
Chances are you're gonna be able to come up with
some kind of a good solution better than just allowing
things to drain, as you said, and then be you know,
rely on medicaid to survive. So that's my answer, Lisa,
sit down and look at some numbers and do a
good financial plan, all right, William and Mason, He says,
I'm trustee of our family's estate. Honestly, I'm overwhelmed. How
(33:24):
do I make sure I'm carrying out my parents' wishes
without making mistakes that could split the family apart. This
sounds like a tough situation.
Speaker 5 (33:33):
Brian, Yeah, William, you're in a little bit of a
tough spot. But it's not uncommon. This is really a
very common thing because there's a lot of pressure and
being that trustee, you know, sometimes feels like you're walking
on a tightrope and you could step off the wrong
way to either side and hank somebody off in the family.
So make sure, first off, make sure you understand what
the job is not just the title. Being the trustee
isn't really just having the final say. It's really about
(33:55):
carrying the trust exactly as written. You're not the person
who has the final say. That was the grants to
set up the trust in the first place. Your job
is simply to execute what mom or dad or whoever
else wrote down on paper for the family to respond
to when they ultimately passed on. So here in the
tri state courts treat for trustees as fiduciaries, which means
you are legally bound to put beneficiaries interests before your own.
(34:16):
So you do have the backing of the court to
do these kinds of things. Document everything, write down everything,
make sure everybody is transparent, where did every penny go?
And so on and so forth, and try to stay neutral.
That's hard to do, but it doesn't take much for
siblings to feel slighted. That is, if there's something in
that trust that that makes a sibling feel like they're
less than or something like that, that's going to be
(34:36):
more between mom or dad and the sibling than it
is you. You are simply executing on that document, so
feel free to ask for help. You can always go
out and hire an attorney to help you act as
a co trustee. That is your right as a trustee
of a trust. You can hire outside counsel. If you
need to do that, do it. But anyway, important job
and we wish you luck. William trying to get that
(34:57):
taken care of. Robert and Terris Park. So he's on
the board sort of a small private company and he
has invested his own money heavily alongside of it.
Speaker 1 (35:04):
How did he wants to know?
Speaker 5 (35:05):
How does he protect himself as if the company should
run into legal or financial trouble.
Speaker 2 (35:09):
Bob, Well, Robert, you got two you know, kind of
separate topics here. One the legal liability. I'm going to
assume that this company is structured as an S corp,
C corp, you know, limited LLC, something like that, some
kind of corporate structure. Most of the time, that's going
to protect you from any personal legal liability. The liability
(35:31):
will be, you know, limited by the assets of the company.
You can get umbrella protection, umbrella lit of liability policy
that we recommend everybody get, you know, to protect yourself.
But I would be less concerned about the legal liability
in this case and more about the diversification of your
long term financial plan and retirement plan. You know, you
(35:54):
just want to make sure you don't put too many
eggs in one basket here, because you know, things can
happen to a small private company and you know, just
just take a look at it and make sure you diversify.
So not a lot of information to work with here,
but those would be my my two answers right off
the cuff here, all right, David and Blue ash quickly here,
(36:16):
Brian he says, I'm a senior executive with two million
dollars in deferred compensation. The payout options are overwhelming. How
do I choose how to take this deferred comp without
accidentally creating a huge disaster from a tax standpoint.
Speaker 5 (36:30):
Yes, I've got a thirty seconds to get you through this.
But deferred comp and what that means, deferred comp is
not forever tax free. It's a timing tool. You are
entitled to this compensation, but you've chosen to defer it.
Therefore it can continue to grow and then get taxed
down the road. So a lot of plans will let
you choose lump versus installment. A lump can mean a
huge TAXI. You're gonna want to be careful with that.
(36:50):
Installments can smooth it out over retirement years. To make
sure you understand how that math works, Hire a fiduciary
advisor to help you do it if you don't.
Speaker 2 (36:58):
Coming up next, Brian has his Bottle Lawn on how
to adjust your thinking from an investment standpoint. Now that
we appear to be moving in an interest rate declining environment,
you're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station, Mark Levin.
Speaker 3 (37:16):
Probably the people who should be listening aren't, but there
are a lot of people who tune in by accident.
Then they start listening. I get this wherever I go listen.
I listened for a week. I listen to two.
Speaker 1 (37:25):
It said I like this guy. I like what he
has to say.
Speaker 8 (37:27):
Mark Levin Tonight at ten oh six on fifty five
KRZ the talk station.
Speaker 10 (37:33):
So worried that next month I have to choose between
groceries for my kids or gas for my car.
Speaker 8 (37:37):
Talk about it here fifty five KRZ, the talk station.
Speaker 2 (37:45):
You're listening to Simply Money, presented by all Work Financial
on Bob's sponsller along with Brian James. All right, now
that interest rates have finally started to come down, Brian,
I know that high caliber brain of yours is spinning,
and you've got all kinds of thought on how that
might impact how we invest lay it on us tonight.
Speaker 1 (38:03):
Both cylinders firing at high power, bob, all two of them.
Speaker 5 (38:07):
But yeah, so so different thinking is what we need
to be doing when we're in a when we move
to different environments, and and that's true today as it
ever was. So what's what we're looking at yet now
is saving eiels are gonna fall when we're in a
declining rate environment. You're gonna see these wonderful high yield
savings accounts that you've been getting four four and a
half percent on those are going to drop. Don't be
(38:28):
shocked or disappointed when when it happens, it's just going
to because those are driven by interest rates as much
as mortgage rates are. Speaking of that debt will also
become cheaper, but timing is going to be important. So
if you have an existing variable rate debt, that's going
to adjust pretty quickly, so like a home equity line
of credit something like that, you can be a little
bit happy because those that interest rate is going to
(38:48):
go down. If you are in that situation paying off
a heelock home equity line of credit, then what you
might consider doing is is don't change your payment. Whatever
payment you were making obviously fits the budget because you've
been making it, So keep making that same payment and
you'll pay that debt down even sooner, and so you
can also for fixed debt. Of course, now we're back
in refinancing eras where we want to think about what
(39:11):
are we paying now? And if I go and refinance
this mortgage, what kind of savings can I take off
of that? And you might even consider perhaps if if
rates move enough. You know this this takes a little
bit of math, but if rates move enough, you might
drop from a thirty year to a fifteen year, and
who knows, that could actually push your payment up, which
seems counterintuitive. But maybe if you since you got that mortgage,
perhaps you've gotten some raises, maybe the mortgage is three
(39:33):
years old or something, and you're making a little more money,
there's more spendable cash. Well, you can take advantage of
that with the least lower interest rates and possibly go
ahead and take advantage of the higher income you have
and pay that whole thing off sooner by going from
a thirty to a fifteen or something like that. But
the thing to I think really focus on is what
do you need and what is out there that you
(39:54):
can take advantage of. And don't get too worried about
the fact that interest rates are falling. You should have
of investments on the other side of this where lower
interest rates are beneficial. So you've got a stock portfolio,
something that's intended to growth for growth that is going
to benefit from this as well, So just make sure
you rebounce that portfolio. It's going to make changes to
the bond side of your portfolio as well. You want
(40:15):
to own different kinds of bonds in a declining rate environment.
So it's time to take a look at things you
may not have looked at in a while. What about you, Bob,
what would you be advising your clients at this point?
Speaker 2 (40:23):
Yeah, I think the thing to look at here is
what happens to the longer end of the curve and
when does it move And I'm talking about five year,
ten year, thirty year yields. That's what really will determine.
You know, maybe a change in strategy, one little change
in short term rates doesn't necessarily facilitate you know, major
(40:44):
changes in your portfolio. You want to take a look
at the trend of rates and then you know that
allows you to make some bigger moves that might have
more impact on the things Brian talked about. But it's
time to look at these things, and it's time to
sit down with your advisor and get out in front
of what next steps might look like. Thanks for listening.
You've been listening to Simply Money, presented by All Work
(41:05):
Financial on fifty five KRC, The Talk Station, Mark Levin.
Speaker 3 (41:11):
We Americans, we patriots, are irrational people, a reasonable people,
the people who know good from either right from wrong.
We also know hustlers and Marxists and fascists in Islamis
who endanger our country every damn day. We're destroying our
culture into civil society, who are breeding a youth that
hates America and embraces the wrong thing.
Speaker 8 (41:29):
Mark Levin tonight at ten oh six on fifty five KRC,
The Talk Station.
Speaker 3 (41:35):
You know
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