October 10, 2025 • 44 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian warn against the “paper wealth trap” — mistaking market highs for lasting financial security. They break down how to turn temporary gains into durable wealth with proper liquidity, diversification, and planning. You’ll also hear why buffered ETFs are drawing billions from investors — and when they actually make sense. Plus, real estate pro Michelle Sloan joins to weigh in on the age-old question: rent or buy? And in ‘Ask the Advisor’ — smart moves for deferred comp plans, protecting company stock, and selling rental properties tax-smartly.
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Episode Transcript
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Speaker 1 (00:00):
Are going to have shutdown.
Speaker 2 (00:02):
ANTIFA would be Trump assas and Ryan Ruth guilty on
all mine.
Speaker 1 (00:06):
I forgive him fifty five krs. The talk station.
Speaker 3 (00:16):
Tonight. Are you truly.
Speaker 4 (00:18):
Well off financially or just tied to the current market momentum?
You're listening to Simply Money presented by all Worth Financial.
I'm Bob Sponseller along with Brian James. When the market's
hitting record highs like it is now, it feels awfully good.
You log into your account, you see the numbers are up,
and you think, wow, we are doing great, We're rich.
(00:39):
But the question is are you really that well off?
And is your long term financial plan really gonna work
just because the stock market is up right now and
the value of your investment accounts are up. Brian, we
see this all the time and we call this the
paper wealth trap. Yeah, So here's what happens.
Speaker 5 (01:00):
When that market goes up, your account grows and you
start to feel wealthier. And anybody who didn't panic in
twenty twenty two should should be sitting on a pile
on the largest pile of money they've ever seen. Because
the market has continued to grow. We've had some fantastic
years and including this one. So the reaction, the human
reaction to that, what do we do. We loosened the
belt a little bit, maybe spend a little more, maybe
stop paying as much attention, kind of lose sight of
(01:21):
the portfolio a little and we assume we're diversified. You know,
I got ten different mutual funds out there, but all
ten are still tied to the same market. That means
that there's nothing that's going to kind of offset any
of the bumps and things that we're going to hit.
Speaker 6 (01:33):
We saw this, you know, about twenty five years ago.
Speaker 5 (01:35):
I remember there was a there was a mutual fund
company called Janis, and they had four funds that, for
about two or three years, were the only things that
anybody wanted to deal with. And then finally in two
thousand and two, the market kind of hit the skids
a little bit and all four of them collapsed at
one time because they were all invested the exact same way.
So don't assume just because you've got five unique ticker
symbols in your portfolio that you have five unique investments.
Speaker 6 (01:56):
You got to look under the hood a little bit,
don't you, Bomp.
Speaker 4 (01:59):
You certainly do so that covers the topic of diversification,
and what we really want to talk about as well
is just this whole mindset shift and the thing we
got to watch out for here is lifestyle creep, meaning
there is a difference between experiencing a good market in
the midst of having a true financial plan where you've
(02:20):
looked at your long term goals, you've actually looked at
what you spend every month or every year, and you
make sure your plan is intact whether the market is
going up, down, or sideways, versus just assuming it's.
Speaker 3 (02:33):
All going to work out.
Speaker 4 (02:34):
And if you get you know, two three, four hundred
thousand dollars of gain in a current year, you say, Wow,
the market's up. I can go buy a more expensive
car than I can really afford, or take two or
three cruises that I can't afford, or eat out at
more expensive restaurants. We're not saying don't enjoy your life
and all that. We're saying do it within the context
(02:56):
of a well constructed financial plan. Don't let the current
em motions of the moment run your spending habits, because
that can backfire real quickly if you're not really paying attention.
Speaker 5 (03:09):
Yeah, it's kind of like looking at Zillo to see
what your house is worth, knowing that that doesn't really
do you any good. It's fun to look at, and
it should be. That's probably at an all time high
as well. But that's not money you can touch unless
you're gonna rent out some of your rooms or carve
off a chunk of the house and sell it off
to somebody. That's not realistic. It's just paper wealth. It
doesn't help you pay your bills. So let's talk about
what durable wealth looks like. So what is this Durable
(03:31):
wealth is the part we're looking for. This is the
part of your balance sheet that survives the storm. These
are your actual dollars, cash reserves, diversified income sources, real
estate insurance, things that don't move one for one and
lockstep with the S and P five hundred. We're very
focused on the stock market, but we want to make
sure we have some things out there that are not
affected by it. So one big example there, Bob, is liquidity.
(03:53):
This is money you can actually get to without selling
at a loss. That's the buffer and bad markets. Liquidity
is a fancy word for emergency fund. We got to
make sure there's some oil in the engine, so that
if something goes wrong we need to fix the car,
or we need to help a kid with something. We've
got dollars that are not impacted by the stock market
that we can tap into.
Speaker 4 (04:11):
Yeah, and we're not trying to take growth oriented investors
and saying, hey, don't have all your your money in
the stock market.
Speaker 3 (04:17):
We're not saying that at all. What we are saying.
Speaker 4 (04:20):
Is we've got to remind folks that the market on
average corrects at least twelve percent every year. We already
have more than that kind of a correction back in
early April, when you know, we had Liberation Day and
the whole world got introduced to tariffs on steroids and
things recovered. But the point is, if you had to go,
(04:42):
you know, write a tuition check or you know, some
other major expense you know you're trying to you know,
redo your kitchen or buy a vehicle, you do not
want to have to sell stocks in a down market
in order to come up with short term liquidity. And so,
you know, it's countering intuitive right now, Why would I
want to have any money parked in the s on
(05:03):
the sidelines earning two three four percent In a quote
unquote safe savings account or money market account when the
when tech stops are going gangbusters. Historically, Brian, you know this,
I know this. We've experienced this umpteen different times.
Speaker 7 (05:19):
Uh.
Speaker 4 (05:19):
When we do get these corrections, no one sees it coming.
It usually comes as a result of something no one
saw coming.
Speaker 3 (05:27):
And that's why we have to remind folks.
Speaker 4 (05:29):
The responsible thing to do is make sure you've got
money set aside for the time frame in which you
plan or want to use it to avoid having to
sell when you have to, not when you want to.
Speaker 6 (05:43):
Yeah, and I think now's the time to do that.
This is a great thing to do here in Q four.
Speaker 5 (05:49):
Look at what's coming up over the next twelve maybe
twenty four months. If you for sure know you're going
to pull a chunk out for one of these reasons,
got to buy a car, or helping kids and whatever,
all the things that we've listed, this is a great
time to carve that out. That doesn't mean you have
to take it out of let's say it's an IRA.
If this is a tax advantage money, you can protect
those dollars from the market without actually pulling it out
(06:10):
of the IRA. Every IRA should have something like a
core position or what's called a suite fund where all
liquid cash lands, or failing that, buy a money market fund.
You can buy a money market fund just like you
can any other exchange traded fund or a mutual fund
or whatever, something that will spit out a little bit
of interest. You might still be able to get three
and a half four and a half percent. It should
still be in that range anyway, and you can carve
(06:32):
those dollars out with the intention of actually taking them
out sometime in the future, but at least you will
have protected them when the market's at an all time high.
So the point is, have a plan, know what you're
going to be shooting for over the next couple of years,
and figure out maybe maybe you should take some of
the risk off the table so that you can still
make those commitments without worrying whatever the.
Speaker 6 (06:52):
Market has done.
Speaker 5 (06:53):
And also I throw out, do a plan and make
sure you have a stress test. Right, So I think
you were just about to go down this path anyway, Yeah,
go ahead.
Speaker 4 (07:00):
Now what we're saying, we're saying the same things, but
it's just you know, this durable wealth for most people
involves Hey, at some point in time, I got to
replace my job with an income stream from my portfolio.
And people want to know before they head into retirement
whether this thing's going to work. And I think a
lot of people get emotionally upset, you know, at the
(07:22):
thought of the market going down three or five percent,
to say nothing of fifteen twenty twenty five percent. And
for people that don't have a plan and have not
stress tests their portfolio, fear tends to take over and
they tend to be under allocated to the stock market,
where you need to be long term in order to
(07:43):
outpace inflation. But to the point I think you were
starting to go down, there's ways to do this, Brian.
There's ways to create different sleeves in your portfolio, whether
those are cash equivalents or buffer detf strategies. There are
things where you can mitigate some of this volume relatility
and still keep a long term wealth, you know, slash
(08:05):
income replacement plan intact to get you the return that
you need to uh to get all within the context
of a risk tolerance that you can sleep at night with.
But you gotta have those discussions. You got to stress
test it, You got to run some numbers and arrive
at a plan that's gonna work.
Speaker 3 (08:22):
For you, yep.
Speaker 5 (08:24):
And that plan basically means looking at all of your resources.
What are your income streams? That might be Social Security,
it could be pensions, it could be part time work.
Perhaps you have the old deferred compensation plans that are
going to kick in, and uh, you know, figuring out
what those streams of incomes are. That's what I like
to call o PM. Other people's money, simply meaning money
that I get on a regular basis that comes from
(08:45):
an outside source, not my own internal piles.
Speaker 4 (08:48):
Brian, I earned my social Security, don't don't try. Don't
try to imply that I didn't.
Speaker 5 (08:53):
But I'm not implying that at all. I'm just talking
about how how we have an urge. We all have
a human urge to try to fit as many of
our bills into money we didn't have at the beginning
of the month. I want somebody else to give me
money because that's what I've become.
Speaker 3 (09:05):
Used to that.
Speaker 5 (09:08):
So that's that's the you know, the outside income sources.
And then and then you do have your your your
you're of course you have your nest egg, which is
going to have different tax treatments. That's a question in
and of itself, do I want to hit my pre
tax money in my iras? Perhaps I have wroth IRA
four oh one k in the mix, or maybe there
are after tax investments, meaning simply something that's in a
joint or individual account that's exposed to taxes on an
(09:29):
annual basis. Each of those three things is going to
have its own type of tax treatment. And uh, for
whatever needs you have, you need to match up the
need with the resource for the most tax efficient manner
to get to those dollars.
Speaker 6 (09:41):
And that can mean, uh, you know.
Speaker 5 (09:43):
That that doesn't mean always avoid the highest taxes, right,
that's usually that's that's not always the way to go.
Speaker 3 (09:48):
Uh.
Speaker 5 (09:48):
Sometimes you know, we want to hit those pre tax dollars.
If we are in a situation where we're in we're
in the lowest bracket we've seen, and this is the
window that people hit before or after right just after retirement,
when salaries in the longer part of the mix, and
maybe they haven't turned on their social securities bigots yet,
therefore they're in their lowest brackets. Ever, that might be
the time to go ahead and hit that pre tax money.
You're gonna pay taxes Eventually, the more you push it out,
(10:12):
the higher your taxes are gonna be, probably when you're
in your mid seventies and require minimum distributions kick in.
Speaker 4 (10:18):
Yeah, you've mentioned taxes three or four times in your
last comment, and that's an important topic that so many
people overlook, and that's just doing proactive tax planning. I mean,
let's say you've got some positions in your portfolio, your
non IRA portfolio, with a low cost basis and potentially
high capital gains. Look at ways and strategies that are
(10:40):
out there, like putting callers on those positions, or using
a donor advised fund for your charitable giving, or gradually
taking a piece off if you could keep your tax
rate at a low rate and you know, up to
a certain numbers zero on capital gains right now, there's
ways to mitigate the tax burden while getting your portfolio
(11:03):
position the way that it needs to be.
Speaker 3 (11:05):
But you got to sit down with some people, you know.
Speaker 4 (11:07):
A good fiduciary advisor, couple with a good CPA, and
map out a strategy. The people that run into trouble, Brian,
or the people that just set it and forget it
and put it on autopilot. And bury their head in
the sane and say there's nothing I can do about it,
so let's just hope it all works out.
Speaker 3 (11:24):
You know.
Speaker 4 (11:24):
For people that go in and do the planning, oftentimes
they're amazed at the kind of results that could come
just by being proactive and getting in a room with
some professionals that know how to do this for you.
Speaker 5 (11:36):
And a lot of it has to do with just
understanding the tax code for what it is and knowing
what the changes are that come every few years as
we put new laws on things in place. Most people
just operate off the assumptions they had thirty years ago,
the last time they looked at all these rules.
Speaker 6 (11:50):
Things change. Make sure you keep up with it and
you're taking advantage of what's given to you.
Speaker 3 (11:54):
Here's the all Worth advice.
Speaker 4 (11:55):
If your sense of security rises and falls with the
perform of the stock market, you're not just building wealth.
You may not be building permanent wealth at all. You
might just be renting it short term. Convert paper gains
into durable assets durable income replacement before the market does
it for you. Investors are pouring billions of dollars into
(12:19):
quote unquote say funds that promise to cushion the next
market drop, but do they really work? We're going to
break that down next. You're listening to Simply Money, presented
by all Worth Financial on fifty five KRC.
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The talk station.
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Life advice is where do I want to be in
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The Dave Ramsey Show What.
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Tonight at seven point five KARC.
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All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (13:08):
You're listening to Simply Money is noted by all Worth Financial,
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how to handle a deferred compensation plan, what to do
when your rental properties have skyrocketed value, and where to
put your money once you've maxed out your retirement accounts.
Speaker 3 (13:46):
We see it all the time.
Speaker 4 (13:47):
Investors are increasingly searching for ways to stay invested in
equities or stocks. But they want to built in shield.
They want exposure without that gut punch that invariably come
when the markets go down, and they don't want to
be sold products with high commissions and fees.
Speaker 3 (14:05):
So what do they do? Brian, Well, what.
Speaker 5 (14:08):
We look at is we look at let's start with
the data here what actually happens. So in twenty twenty
five so far we talk about these from time to time,
but buffer style ETFC, these are exchange traded funds that
look to limit downside losses.
Speaker 6 (14:23):
While they've drawn in about nine point.
Speaker 5 (14:24):
Seven billion in inflows and more the more traditional low
volatility or kind of growth index arrangements that we're more
comfortable with, those have seen only about two and a
half billion in outflows. So now what we're seeing is
obviously more flowing into the buffer side, and it's kind
of coming out of the low volatility index stuff. The
reason for this is because of what they do, so
(14:45):
a buffer or what's called a defined outcome exchange traded fund.
These are the types of funds that blend equity exposure,
so that's the growth that we all come to love
with a bit of an option's overlay, meaning that yes,
they are trading options. This is not an aggressive speculative.
This is in a sort of portfolio insurance manner, and
they're looking to buffer or reduce those losses overs over
(15:06):
a specific range, so kind of think of as a
safety net. You're going to give up some of the upside,
of course, but that's in exchange for some of the
some protection on the downside. For example, the first ten
percent of losses might be absorbed, so if the market
drops eight percent, that ETF may only decline two percent,
depending on the structure.
Speaker 6 (15:24):
But on the flip side, that's the good part.
Speaker 5 (15:25):
On the flip side, Bob, often there's a gain, there's
a cap on the gain. So if the market actually
goes up twenty percent, that exchange traded fund might not
get any more than fifteen percent. So you're going to
give up some of the upside in exchange for a
little bit of protection on the downside over a fixed
period of time, and it's usually about a year after
which that that buffer is going to reset into a
new frame or there's some kind of new time structure, all.
Speaker 3 (15:48):
Right, Brian.
Speaker 4 (15:48):
I love these things for the right kind of investor,
you know, the folks that know they need to be
involved in the market to get that return to hit
their long term financial goals that we talked about all
the time as of a financial plan, but they just
can't emotionally stomach the historical volatility of being all in stocks.
These are great options for those kind of people. And
(16:11):
let's just put you know, put the cards on the
table here this strategy. What is it competing with these
indexed annuities that are being sold left and right by
non fiduciary, commission based people where huge commissions are involved.
The lock up periods, surrender charges are huge. The thing
(16:32):
I love about these buffer ETF strategies, and you already
said it. You typically, if you're going a good, responsibly constructed,
you know strategy around these things, you can reset it
after one year, you can get out at any time.
It's liquid, so you got a lot of options if
your goals and these change, and as the market changes,
(16:52):
the buffers and the changes and the index by which
you want to tie these things.
Speaker 3 (16:57):
Too can change.
Speaker 4 (16:59):
You have a lot of flexibility if you're working with
a good fiduciary advisor and an actual strategy versus just
being sold a product by a commissioned salesperson.
Speaker 5 (17:10):
How about that for a Thursday morning rant? Oh you
know how we love your rants. Bob rants are a
great way to start the day. So, yeah, these are
in the right situation, I think I want to drill
into you know what you just said there, In the
right situation.
Speaker 6 (17:23):
These can make some sense.
Speaker 5 (17:24):
But at the same time, if you are somebody who
has you understand market history and you don't panic when
the market wobbles, and you know that there's a cycle
to things and things come and go, then you might
be leaving money on the table just for the exchange
of protecting yourself during a period of time you probably
weren't going to panic and sell anyway. So just recognize
there is a bit of a sacrifice involved here, and
(17:45):
I think this is important to call that because these
things are getting out there. As we said, there's there's
a lot more. The big players out there are are
launching bigger versions of this. It's becoming more popular. So
black Rock just launched one called the Ice Shares Large
Cap ten percent Target Buffer, and that's the whole the
whole point of it, obviously, is it's supposed to protect
you against the first ten percent of losses against the
(18:05):
S and P five hundred ark arc is. That's run
by Kathy Wood. Her name pops up in financial media
all the time. She's got one coming out as well.
And investors are throwing money into these things. As we
said earlier, there's more flowing under the buffer side most
recently than there is on the on the more traditional side.
So just understand what you're getting into if you choose
to get into these, understand what they do and more importantly,
(18:26):
understand what they do not do well.
Speaker 4 (18:29):
And then there's actual portfolio strategies, you know, where you
take a bunch of these different buffer at ETF and
pair them together, so you've got access to a lot
of different indices, and you do have an actual manager
in the background taking a look at when it's the
right time to reset the strategy. Again, this comes down
(18:50):
just to boil it down real simply, Brian, and you
know this when we sit down with somebody and actually
do a financial plan and an asset allocation strategy. It
comes down to this, there's an amount of risk you
have to take in your portfolio to get the return
you need to get to achieve your goals.
Speaker 3 (19:08):
That's one part of it.
Speaker 4 (19:10):
And then there's the emotional amount of risk that somebody's
willing to take to keep from waking up in the
middle of the night worrying about the stock market.
Speaker 3 (19:19):
So, like you said, in situations like.
Speaker 4 (19:22):
This where we've got to have people involved in the market,
but we got to buffer that emotional risk by knowing
upfront what our downside limitations are. These can work wonderfully
get people where they need to be in terms of
an asset allocation without them feeling like they're just getting
thrown to the wolves without any downside protection whatsoever. And
(19:45):
it's in those situations where these can work out great
because the phone call no client ever wants to make,
and no advisor wants to get is that phone call
that says, hey, I can't take it anymore, get me out,
move me to cash, and I'll wait until things are
quote unquote better. If that situation ever happens, the advisor
(20:07):
didn't do his or her job, the client didn't do
their job, and it can end up in a disaster.
Speaker 3 (20:13):
So that's where these things.
Speaker 4 (20:14):
Can really work out, as you said, if they're fitted
to the right situation in a truly comprehensive financial plan.
All right, here's the all Worth advice. Protect what matters,
don't lock away your upside though, use buffer etf smartly
and selectively, always informed of their boundaries and their costs.
(20:36):
It's a question many people will ask on the path
to financial freedom. Should I rent or buy a home?
We'll help you answer that question coming up next. You're
listening to Simply Money, presented by all Worth Financial on
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(21:00):
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UNBOMP sponseller along with Brian James, joined tonight by our
Real Estate expert Michelle Sloan, owner of Remax Time. Michelle,
thanks again for spending time with us tonight, and you
want to talk about something that's always a fascinating topic
to me, and I know Brian loves this as well,
just the conversations that we all get into nowadays on hey,
(21:38):
does it make more sense to rent a home or
buy a home?
Speaker 3 (21:42):
And what are the pros.
Speaker 4 (21:43):
And cons from a financial standpoint and a cost standpoint.
And I know you've got a lot to offer on
this topic, walk us through it tonight.
Speaker 2 (21:52):
You know, it would be smart of me as a
salesperson to always say you should buy a home, but
you know, after doing the twenty years, you know I
have to be so realistic when I sit down with
clients who are interested in buying a home, because there
(22:15):
is a lot to consider when it comes to buying
a home and maybe, depending on your specific situation, renting
is the better move.
Speaker 7 (22:26):
So we'll break.
Speaker 2 (22:27):
It down a little bit with our pros of renting,
O pro our cons of renting, the pros of buying,
et cetera.
Speaker 7 (22:34):
Are you ready?
Speaker 3 (22:35):
I'm ready?
Speaker 2 (22:37):
Okay, all right, Well, the first pro of renting is
there is a lower upfront cost the barrier to entry. Basically,
you only need likely a security deposit, maybe first month's rent,
an application fee of fifty dollars, and you can live
(22:58):
in a property. That's a good thing. That's a pro
for renting. When it comes to buying, certainly you're going
to need a much larger down payment. You're going to
pitch of a couple hundred thousand dollars, so you might
need twenty thousand dollars. You may and a lot of
people don't have that in their bank account. So that's
(23:18):
that's the first barrier to buying a home is having
some cash on hand. And so saving is so important
when I can when I consult with buyers or want
to be buyers, is you know what, it takes time
to build up the savings that you need to buy
(23:39):
a home. So number one, if you don't have that,
renting may be your only option. And that's okay, as
long as you can try to find a way to
start saving because in the end, and this is the
way sort of the world goes around and around. As
you're younger, you don't have a lot of savings and
(24:00):
you're not making as much money as you get a
little bit older and your job becomes more stable, then
you're thinking about Okay, I mean to start a family.
Now it's time to start thinking about buying and having
that nestech is so very important.
Speaker 5 (24:15):
Well, Michelle, what would you say that the average time
is if somebody knows they're going to be somewhere, you know,
for a certain amount of time, when when is that
that sort of break even point? If you're going to
if you know you're going to stay put for this
many years, then it's safe to buy, versus if you
may have to move in two or three years, that's
a little bit dice.
Speaker 6 (24:32):
You might want to consider renting. Do you have a
break even for that?
Speaker 2 (24:35):
Yeah?
Speaker 4 (24:35):
I do.
Speaker 2 (24:36):
Actually, that's a great question. Because mortgage rates are high
and home prices are high, it often takes longer for
the benefits of buying to actually catch up with renting.
So for that break even time, it's anywhere between six
and eight years. So if you're planning on staying in
(24:56):
your home for six to eight years, that's when it's
definitely time for you to consider buying. If you're going
to be bouncing around and you don't know if your
job's going to be stable, or if you personally are
just not sure you want to live in a particular
area and you're going to move within a year or two,
guess what you're likely to lose money on that investment
(25:19):
and buying a home. Although it's very emotional and it's
where you live, and it's where you it's all of
the things that go along with buying a home, it
is an investment and it's one of the biggest and
most important investments that you're ever going to make. So
when you make it with the and you're very thoughtful
(25:40):
about it, that's so important. So if you're planning on
staying in a home for less than six to eight years,
you may consider renting. Now, No, you're never going to
build equity when you're renting. That's the other con of renting.
You're not paying yourself. You're actually paying the person who
(26:00):
owns that property, and you're paying for them to build wealth.
And so wealth building is extremely important in the real
estate industry, and it's important in your industry too, right
because you look at those kinds of folks that have
homes or multiple properties, and we look at how the
(26:21):
increase in value of those properties will continue from year
to year and you know that's part of your portfolio.
Speaker 5 (26:31):
Okay, So falling off the timing question again, do you
see people relying on arms on adjustable rate mortgages now,
now that we're in a declining rate environment, are people
kind of taking that risk of needing to refinance in
three or five years or do you see people locking
them in for longer term fix.
Speaker 2 (26:46):
Most of my clients, you know, like the stability of
either a fifteen or a thirty year the arms in
my opinion, and again I don't do the mortgage side
of things every single day. I think it's an option
and an opportunity, but there's a lot of people who don't.
They feel like if you do a five to one
(27:06):
arm or a seven to one arm or whatever, that
is knowing that we don't know what the future looks
like in five years. It could be worse than it
is today. And if you're doing an interest only loan
and you're only paying the interest, you're never really you're
just again sort of spinning your wheels. So you definitely
want to talk to an expert in the financing side
(27:29):
of it, the mortgage industry, and really see what is
best suited for your budget. And your personal situation.
Speaker 4 (27:40):
Michelle, I want to go back to your example, and
first of all, I want to call out and just
say thank you for your transparency and your honesty and
be willing to well. I'm being sincere because I know
the way you operate. You're you truly operate like a
good fiduciary advisor, not just a real estate salesperson. And
that's why we, you know, think so highly of you
(28:01):
and trust you and love having you on the show.
Speaker 3 (28:03):
So I mean that sincerely.
Speaker 2 (28:04):
Thank you.
Speaker 4 (28:05):
The point I want to add to your prior comment
is for those folks that maybe aren't in that six
to eight year window now, the key thing is to
not go through lifestyle creep and just because you're renting,
spend one hundred percent of your discretionary income so you
don't build up that emergency fund earmarked for a home
down payment, right, And is that what you talk about
(28:26):
to your clients that maybe aren't ready yet, but you
know need to be ready in four or five years.
Speaker 2 (28:33):
One hundred percent. You always want to be planning for
your future, so finding ways to save, even if it's
a couple of bucks some months or you know, one
hundred dollars here, fifty dollars there. Definitely setting that money aside,
not only for buying a home, but you know, just life.
You never know what's going to happen along the way,
(28:55):
and if you are prepared for any you know, your
cars down, okay, if you have no emergency fund, you
can't fix your car, you can't get around. So it's
the same thing with the house, and it definitely is
starting to put money away is so important. The other
thing that I'd like to tell buyers real quick, and
(29:17):
I know that we're up against the clock, is checking
your credit because having good credit will go a long
way for getting the best rates when it does come
time for you.
Speaker 9 (29:29):
To buy a house.
Speaker 3 (29:30):
Great point and very important point. Thanks as always so much, Michelle.
Speaker 4 (29:34):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the Talk station.
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Thank America, Trump again.
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Speaker 3 (32:56):
Mark your opinions are welcome to here. I do think
he is too old to run.
Speaker 2 (33:00):
In twenty twenty four.
Speaker 1 (33:01):
Fifty five krs. The talk station.
Speaker 4 (33:08):
You're listening to simply Money percent of my all Worth
Financial on Bob Spon Seller along with Brian Jains. Do
you have a financial question you'd like for us to answer.
There's a red button you can click while you're listening
to the show right on the iHeart app.
Speaker 3 (33:21):
Simply record your question.
Speaker 4 (33:23):
And it will come straight to us Brian, Jason or
John excuse me, and Mason leads us off tonight, he says,
we've been building cash reserves waiting.
Speaker 3 (33:33):
For a market ball back, but it never seems to come.
Speaker 4 (33:36):
How do we decide when to put that money back
to work without guessing wrong?
Speaker 5 (33:42):
Well, I hope you haven't set aside too much because
this is kind of the what we're living through right now,
the reason that we don't want to do those kinds
of things. At the end of the day, what you're
trying to do is time the market. And you know,
whether that's done out of fear or greed, it's still
timing and it's not something we can control. We can
be right nine times in a row, and that tenth
time comes back around to get you. So, you know,
(34:04):
even even with money paying four or five percent on
money markets, inflation is still eating away. You're purchasing power
over time, So missing just the ten best days in
the market over twenty years can cut that return in half.
So really, what should you do now? I'd say stop
paying attention to the market. You know, maybe do maybe
do a little quick math and figure out exactly how
much has been left on the table over whatever this
(34:24):
time period is that you've been sitting in cash, Just
so you can be reminded not to, you know, not
to try to pull the strategy too many times. But
if you're nervous about putting it all into once because
you feel like the train has left the station, spread
it out over time, you know, maybe divide it by
six a little bit over over the next six months
and then let it go. Let it do its job.
Don't be surprised when the market pulls back. That's a
guarantee I can give you it's gonna happen. But this
(34:46):
is you know, I hate to see people thinking they're
making responsible financial decisions. Then they wind up throwing the
money in and the market does take a downturn, and
then those people tend to decide that the market has
targeted them for failure. The market could care less about you,
or your goals or your money. It's going to do
what it does. You have to learn to let it
do what it to, how to ride it and not
try to tap dance in and out of it.
Speaker 6 (35:06):
So let's move on to Greg in Westchester.
Speaker 5 (35:08):
So Greg's got a slug of company stock and his
retirement plan. He's concerned that it's become a pretty big
part of his portfolio, and he's asking, Bob, are those
option strategies like Collers protective puts? Is that realistic for
an individual investor?
Speaker 4 (35:22):
Or?
Speaker 6 (35:22):
Is that better left to the institutions.
Speaker 4 (35:24):
I think they're absolutely appropriate for individual investors, and I
wish more individual investors knew about them and actually use that.
That being said, they're awfully helpful if you're working with
a good fiduciary advisor that even knows what things these
things are and how to deploy them.
Speaker 3 (35:42):
So let's get into that a little bit. A protective put.
Speaker 4 (35:46):
I mean, sometimes our industry does a great job of
making this stuff, you know, seem way more complicated than
it is. Think about if you've got a million dollar home, Okay,
you would not sit out there with that home and
have no insurance on the house. Right if it burns down,
you know, or a flood comes through or whatever and
wipes it out, you're you're eliminating a big chunk of
(36:08):
your net worth. Same thing with the stock. All the
protective put is is I am buying an option to
sell that stock at this price by this set date,
and you got to pay, you know, a premium to
do that. You know, just treat it like an insurance premium.
If the stock keeps going up and you hold that
put to expiration, it goes away and that's a lost
(36:32):
you know cost to ensure that stock, just like you know,
premiums you pay on your home. If the stock starts
to go down, you don't have to hold the put
to expiration. You can sell it if you get that
eight ten percent pullback, what have you. You can always sell
the put for a profit. But you got the protection
and if you were right and the stock went down,
(36:52):
you were protected and made a little money on the
down on the you know, with your downside protection. All
a collar is is an a to help get some
of that insurance paid for. Meaning you sell a call option,
meaning you're you are willing to sell your stock by
a certain date at a certain price, and you receive
(37:12):
a premium in order, you know, in return for selling
that call option, and that helps pay for the call
op or the put protection. So you know, in a
caller strategy, you want to spread these things apart a
little bit and usually you know that way, you have
a little bit more upside left. You know, things continue
to go up, but you're helping pay for some downside protection.
Speaker 3 (37:34):
It's a wonderful strategy.
Speaker 4 (37:37):
Unfortunately, a lot of people have no idea what I'm
talking about, including advisors, and don't know how to put
this into a responsible financial plan.
Speaker 3 (37:46):
Hope that helps.
Speaker 4 (37:47):
Greg, all right, Michael and Hyde Park says, I'm being
offered a deferred compensation plan, but I'm worried about company solvency.
Speaker 3 (37:55):
How do you evaluate that kind of risk.
Speaker 4 (37:57):
Before committing to even get involve the deferred comp plan?
Speaker 6 (38:01):
So yeah, Michael, congratulations.
Speaker 5 (38:03):
Obviously you're you're working for an employer that has put
together some great benefit plans for their for the employees.
For those who might not know a deferred compensation plan,
This is not a four to oh one K. This
is something in addition to a four oh one K.
Four oh one K, of course, has its own limitations
of how much money can go in somewhere between twenty
three and thirty thousand dollars depending on your age. That
is available to everybody out there. A deferred comp plan
(38:25):
is different. It's not made available to everybody, to absolutely everybody.
It's usually an executive type of a plan, something for
higher income owners generally speaking, but also the big risk
and Michaels already clued into this.
Speaker 6 (38:38):
These are assets of the company.
Speaker 5 (38:40):
What that means is that a deferred comp plan is
it's a It could be a acclaimed by a creditor.
If that company ever gets sued by somebody, or or
goes bankrupt or whatever. That basically means that these assets
are exposed. You're four oh one K. That is not
that is very clearly walled off. Nobody can touch it.
Speaker 6 (38:57):
So what do you have to do?
Speaker 5 (38:58):
You have to treat this like any other company. Forget
the fact that you work there. Make sure you understand
your own company's credit ratings. If it's publicly traded. What
is their debt load, what are their financial statements look like?
Look at trends and cash flow profit margins, have they
made layoffs recently? And you can even ask HR for
planned documents that they should be shoving them in your
face anyway, if you've got this as an option, but
(39:20):
make sure you understand exactly where that goes.
Speaker 6 (39:22):
So, yes, you're right to identify some risk.
Speaker 5 (39:23):
There could be a good opportunity here, but it could
also be risky as well, so just make sure you
understand what you're getting into. But otherwise those can be
really beneficial programs. So one more quick one. Alison and
Lovelin's got some rental properties. They've gone up, but the
maintenance is wearing them out. So would she asks Bob
what are their best exit strategies? How can they get
out without triggering these massive capital gains of real estate?
Speaker 3 (39:44):
Well, I got to move quick here, Alison.
Speaker 4 (39:46):
The most popular option is to use if you don't
want to have maintenance headaches and be a landlord anymore,
at Delaware statutory trust better known as a passive ten
thirty one alternatives, So you basically put your property in there.
It gets sold and you get diversified into a professionally
managed portfolio of real estate. You defer the capital gains
(40:09):
and you convert this to an income stream. The only
thing is they're typically a little bit illiquid. You got
to be willing to hold them for five or ten years.
But it can be a good strategy to defer and
spread out that capital gains headache, and also get yourself
out of the landlord and you know maintenance business, which
a lot of people want to do is they head
(40:31):
toward retirement. All right, coming up next, some advice on
keeping money from wrecking your relationships. You're listening to Simply Money,
presented by all Worth Financial on fifty five krz the
talk station, Mark Levin.
Speaker 6 (40:45):
Reliable information and of course not just one sided view us.
Speaker 1 (40:49):
That affects you at the top end to bottom of
the hour, fifty five krz the talk station.
Speaker 4 (40:59):
You're listening to some money It's not up by all
Worth Financial on Bob's Fond Seller along with Brian James.
Did you know that more than one in three Americans
say they have lost a friendship because of money, according
to a new survey.
Speaker 3 (41:13):
From lending Tree.
Speaker 4 (41:14):
They say financial stress disputes or mismatch spending expectations have
driven a wedge between people they once called friends.
Speaker 3 (41:24):
Brian, this is a shame. Walk us through it, well, Bob.
Speaker 5 (41:26):
We've got a survey here showing four out of ten
admit having had disagreements with friends over money, and about
a third of them feel pressure to match their friends spending,
and about one in three, Bob, have lied about how
well they're doing financially. Well, this shows us that money
can be a bit of a minefield. This is one
of the last domains where we actually reveal our vulnerabilities
because people can see what we spend money on, income, debt,
(41:46):
our fears, aspirations. When all of our friends are at
different stages or just have different attitudes for how this
is working for him, these differences can really magnify between people,
and it can drive a wedge between between people who
otherwise we're good family members and friends.
Speaker 3 (42:01):
Well, Brian, what this comes down to me is just, uh,
I'll just say it. Insecurity.
Speaker 4 (42:06):
You know, you've got people that have a lot of
money where their whole identity is tied up in their
wealth or you know, their income, and they like to
you know.
Speaker 3 (42:14):
Lord it over people.
Speaker 4 (42:15):
They talk about their country club membership or their expensive vacation.
You know, they they want to make everybody know that
they've made it and they're doing great. If you're if
you're around people like that, you got to question whether
they are truly your friend, because if they're gonna if
they're going to hang that over your head and make
you feel like less of a person, I would say
(42:36):
that's not really a friend. On the flip side, if
you've got people that hang out with folks that have
some money and you've got less money, and you're expecting
that person to pay for your stuff, pay for your dinner,
you know, all that kind of stuff.
Speaker 3 (42:50):
You know, that's not good either.
Speaker 4 (42:52):
So I think it comes down to not tying your
identity to money.
Speaker 3 (42:57):
True friendships, UH can.
Speaker 4 (42:59):
Put all that kind of stuff aside, have a little
bit of a feel for where your friend really is
financially and treat treat one another with you know, mutual
respect and dignity, and uh, keep from getting into you know,
all these kind of messes. I hate to see relationships
end because of money. Here's the all Worth advice. Prevent
money from becoming that silent wedge. To find your terms,
(43:22):
talk early, protect both your financial peace and your friendships.
Thanks for listening tonight. You've been listening to Simply Money,
presented by all Worth Financial on fifty five KRC The
Talk Station.
Speaker 1 (43:34):
I want to know what's happening.
Speaker 10 (43:35):
I know what's going on around town, around the country.
Speaker 1 (43:38):
I need to know the weather, in traffic.
Speaker 10 (43:41):
I want to know what's happening on my local school boards.
Speaker 1 (43:43):
I want to know that too.
Speaker 2 (43:44):
If I don't know what's going on, how can I
have a valid opinion.
Speaker 10 (43:48):
Knowing is like massaging your brain, and it's pretty easy
to do, right.
Speaker 8 (43:53):
I do it every.
Speaker 4 (43:54):
Day, and then I listen on the way to work
every day, the home, and then
Speaker 1 (44:00):
You'll know unch fifty five KRZ The Talk Station, The
Guru of
Are going to have shutdown.
Speaker 2 (00:02):
ANTIFA would be Trump assas and Ryan Ruth guilty on
all mine.
Speaker 1 (00:06):
I forgive him fifty five krs. The talk station.
Speaker 3 (00:16):
Tonight. Are you truly.
Speaker 4 (00:18):
Well off financially or just tied to the current market momentum?
You're listening to Simply Money presented by all Worth Financial.
I'm Bob Sponseller along with Brian James. When the market's
hitting record highs like it is now, it feels awfully good.
You log into your account, you see the numbers are up,
and you think, wow, we are doing great, We're rich.
(00:39):
But the question is are you really that well off?
And is your long term financial plan really gonna work
just because the stock market is up right now and
the value of your investment accounts are up. Brian, we
see this all the time and we call this the
paper wealth trap. Yeah, So here's what happens.
Speaker 5 (01:00):
When that market goes up, your account grows and you
start to feel wealthier. And anybody who didn't panic in
twenty twenty two should should be sitting on a pile
on the largest pile of money they've ever seen. Because
the market has continued to grow. We've had some fantastic
years and including this one. So the reaction, the human
reaction to that, what do we do. We loosened the
belt a little bit, maybe spend a little more, maybe
stop paying as much attention, kind of lose sight of
(01:21):
the portfolio a little and we assume we're diversified. You know,
I got ten different mutual funds out there, but all
ten are still tied to the same market. That means
that there's nothing that's going to kind of offset any
of the bumps and things that we're going to hit.
Speaker 6 (01:33):
We saw this, you know, about twenty five years ago.
Speaker 5 (01:35):
I remember there was a there was a mutual fund
company called Janis, and they had four funds that, for
about two or three years, were the only things that
anybody wanted to deal with. And then finally in two
thousand and two, the market kind of hit the skids
a little bit and all four of them collapsed at
one time because they were all invested the exact same way.
So don't assume just because you've got five unique ticker
symbols in your portfolio that you have five unique investments.
Speaker 6 (01:56):
You got to look under the hood a little bit,
don't you, Bomp.
Speaker 4 (01:59):
You certainly do so that covers the topic of diversification,
and what we really want to talk about as well
is just this whole mindset shift and the thing we
got to watch out for here is lifestyle creep, meaning
there is a difference between experiencing a good market in
the midst of having a true financial plan where you've
(02:20):
looked at your long term goals, you've actually looked at
what you spend every month or every year, and you
make sure your plan is intact whether the market is
going up, down, or sideways, versus just assuming it's.
Speaker 3 (02:33):
All going to work out.
Speaker 4 (02:34):
And if you get you know, two three, four hundred
thousand dollars of gain in a current year, you say, Wow,
the market's up. I can go buy a more expensive
car than I can really afford, or take two or
three cruises that I can't afford, or eat out at
more expensive restaurants. We're not saying don't enjoy your life
and all that. We're saying do it within the context
(02:56):
of a well constructed financial plan. Don't let the current
em motions of the moment run your spending habits, because
that can backfire real quickly if you're not really paying attention.
Speaker 5 (03:09):
Yeah, it's kind of like looking at Zillo to see
what your house is worth, knowing that that doesn't really
do you any good. It's fun to look at, and
it should be. That's probably at an all time high
as well. But that's not money you can touch unless
you're gonna rent out some of your rooms or carve
off a chunk of the house and sell it off
to somebody. That's not realistic. It's just paper wealth. It
doesn't help you pay your bills. So let's talk about
what durable wealth looks like. So what is this Durable
(03:31):
wealth is the part we're looking for. This is the
part of your balance sheet that survives the storm. These
are your actual dollars, cash reserves, diversified income sources, real
estate insurance, things that don't move one for one and
lockstep with the S and P five hundred. We're very
focused on the stock market, but we want to make
sure we have some things out there that are not
affected by it. So one big example there, Bob, is liquidity.
(03:53):
This is money you can actually get to without selling
at a loss. That's the buffer and bad markets. Liquidity
is a fancy word for emergency fund. We got to
make sure there's some oil in the engine, so that
if something goes wrong we need to fix the car,
or we need to help a kid with something. We've
got dollars that are not impacted by the stock market
that we can tap into.
Speaker 4 (04:11):
Yeah, and we're not trying to take growth oriented investors
and saying, hey, don't have all your your money in
the stock market.
Speaker 3 (04:17):
We're not saying that at all. What we are saying.
Speaker 4 (04:20):
Is we've got to remind folks that the market on
average corrects at least twelve percent every year. We already
have more than that kind of a correction back in
early April, when you know, we had Liberation Day and
the whole world got introduced to tariffs on steroids and
things recovered. But the point is, if you had to go,
(04:42):
you know, write a tuition check or you know, some
other major expense you know you're trying to you know,
redo your kitchen or buy a vehicle, you do not
want to have to sell stocks in a down market
in order to come up with short term liquidity. And so,
you know, it's countering intuitive right now, Why would I
want to have any money parked in the s on
(05:03):
the sidelines earning two three four percent In a quote
unquote safe savings account or money market account when the
when tech stops are going gangbusters. Historically, Brian, you know this,
I know this. We've experienced this umpteen different times.
Speaker 7 (05:19):
Uh.
Speaker 4 (05:19):
When we do get these corrections, no one sees it coming.
It usually comes as a result of something no one
saw coming.
Speaker 3 (05:27):
And that's why we have to remind folks.
Speaker 4 (05:29):
The responsible thing to do is make sure you've got
money set aside for the time frame in which you
plan or want to use it to avoid having to
sell when you have to, not when you want to.
Speaker 6 (05:43):
Yeah, and I think now's the time to do that.
This is a great thing to do here in Q four.
Speaker 5 (05:49):
Look at what's coming up over the next twelve maybe
twenty four months. If you for sure know you're going
to pull a chunk out for one of these reasons,
got to buy a car, or helping kids and whatever,
all the things that we've listed, this is a great
time to carve that out. That doesn't mean you have
to take it out of let's say it's an IRA.
If this is a tax advantage money, you can protect
those dollars from the market without actually pulling it out
(06:10):
of the IRA. Every IRA should have something like a
core position or what's called a suite fund where all
liquid cash lands, or failing that, buy a money market fund.
You can buy a money market fund just like you
can any other exchange traded fund or a mutual fund
or whatever, something that will spit out a little bit
of interest. You might still be able to get three
and a half four and a half percent. It should
still be in that range anyway, and you can carve
(06:32):
those dollars out with the intention of actually taking them
out sometime in the future, but at least you will
have protected them when the market's at an all time high.
So the point is, have a plan, know what you're
going to be shooting for over the next couple of years,
and figure out maybe maybe you should take some of
the risk off the table so that you can still
make those commitments without worrying whatever the.
Speaker 6 (06:52):
Market has done.
Speaker 5 (06:53):
And also I throw out, do a plan and make
sure you have a stress test. Right, So I think
you were just about to go down this path anyway, Yeah,
go ahead.
Speaker 4 (07:00):
Now what we're saying, we're saying the same things, but
it's just you know, this durable wealth for most people
involves Hey, at some point in time, I got to
replace my job with an income stream from my portfolio.
And people want to know before they head into retirement
whether this thing's going to work. And I think a
lot of people get emotionally upset, you know, at the
(07:22):
thought of the market going down three or five percent,
to say nothing of fifteen twenty twenty five percent. And
for people that don't have a plan and have not
stress tests their portfolio, fear tends to take over and
they tend to be under allocated to the stock market,
where you need to be long term in order to
(07:43):
outpace inflation. But to the point I think you were
starting to go down, there's ways to do this, Brian.
There's ways to create different sleeves in your portfolio, whether
those are cash equivalents or buffer detf strategies. There are
things where you can mitigate some of this volume relatility
and still keep a long term wealth, you know, slash
(08:05):
income replacement plan intact to get you the return that
you need to uh to get all within the context
of a risk tolerance that you can sleep at night with.
But you gotta have those discussions. You got to stress
test it, You got to run some numbers and arrive
at a plan that's gonna work.
Speaker 3 (08:22):
For you, yep.
Speaker 5 (08:24):
And that plan basically means looking at all of your resources.
What are your income streams? That might be Social Security,
it could be pensions, it could be part time work.
Perhaps you have the old deferred compensation plans that are
going to kick in, and uh, you know, figuring out
what those streams of incomes are. That's what I like
to call o PM. Other people's money, simply meaning money
that I get on a regular basis that comes from
(08:45):
an outside source, not my own internal piles.
Speaker 4 (08:48):
Brian, I earned my social Security, don't don't try. Don't
try to imply that I didn't.
Speaker 5 (08:53):
But I'm not implying that at all. I'm just talking
about how how we have an urge. We all have
a human urge to try to fit as many of
our bills into money we didn't have at the beginning
of the month. I want somebody else to give me
money because that's what I've become.
Speaker 3 (09:05):
Used to that.
Speaker 5 (09:08):
So that's that's the you know, the outside income sources.
And then and then you do have your your your
you're of course you have your nest egg, which is
going to have different tax treatments. That's a question in
and of itself, do I want to hit my pre
tax money in my iras? Perhaps I have wroth IRA
four oh one k in the mix, or maybe there
are after tax investments, meaning simply something that's in a
joint or individual account that's exposed to taxes on an
(09:29):
annual basis. Each of those three things is going to
have its own type of tax treatment. And uh, for
whatever needs you have, you need to match up the
need with the resource for the most tax efficient manner
to get to those dollars.
Speaker 6 (09:41):
And that can mean, uh, you know.
Speaker 5 (09:43):
That that doesn't mean always avoid the highest taxes, right,
that's usually that's that's not always the way to go.
Speaker 3 (09:48):
Uh.
Speaker 5 (09:48):
Sometimes you know, we want to hit those pre tax dollars.
If we are in a situation where we're in we're
in the lowest bracket we've seen, and this is the
window that people hit before or after right just after retirement,
when salaries in the longer part of the mix, and
maybe they haven't turned on their social securities bigots yet,
therefore they're in their lowest brackets. Ever, that might be
the time to go ahead and hit that pre tax money.
You're gonna pay taxes Eventually, the more you push it out,
(10:12):
the higher your taxes are gonna be, probably when you're
in your mid seventies and require minimum distributions kick in.
Speaker 4 (10:18):
Yeah, you've mentioned taxes three or four times in your
last comment, and that's an important topic that so many
people overlook, and that's just doing proactive tax planning. I mean,
let's say you've got some positions in your portfolio, your
non IRA portfolio, with a low cost basis and potentially
high capital gains. Look at ways and strategies that are
(10:40):
out there, like putting callers on those positions, or using
a donor advised fund for your charitable giving, or gradually
taking a piece off if you could keep your tax
rate at a low rate and you know, up to
a certain numbers zero on capital gains right now, there's
ways to mitigate the tax burden while getting your portfolio
(11:03):
position the way that it needs to be.
Speaker 3 (11:05):
But you got to sit down with some people, you know.
Speaker 4 (11:07):
A good fiduciary advisor, couple with a good CPA, and
map out a strategy. The people that run into trouble, Brian,
or the people that just set it and forget it
and put it on autopilot. And bury their head in
the sane and say there's nothing I can do about it,
so let's just hope it all works out.
Speaker 3 (11:24):
You know.
Speaker 4 (11:24):
For people that go in and do the planning, oftentimes
they're amazed at the kind of results that could come
just by being proactive and getting in a room with
some professionals that know how to do this for you.
Speaker 5 (11:36):
And a lot of it has to do with just
understanding the tax code for what it is and knowing
what the changes are that come every few years as
we put new laws on things in place. Most people
just operate off the assumptions they had thirty years ago,
the last time they looked at all these rules.
Speaker 6 (11:50):
Things change. Make sure you keep up with it and
you're taking advantage of what's given to you.
Speaker 3 (11:54):
Here's the all Worth advice.
Speaker 4 (11:55):
If your sense of security rises and falls with the
perform of the stock market, you're not just building wealth.
You may not be building permanent wealth at all. You
might just be renting it short term. Convert paper gains
into durable assets durable income replacement before the market does
it for you. Investors are pouring billions of dollars into
(12:19):
quote unquote say funds that promise to cushion the next
market drop, but do they really work? We're going to
break that down next. You're listening to Simply Money, presented
by all Worth Financial on fifty five KRC.
Speaker 3 (12:31):
The talk station.
Speaker 1 (12:33):
Life advice is where do I want to be in
ten years or twenty years? Right from real life experience
The Dave Ramsey Show What.
Speaker 8 (12:41):
Will have to be true about me that is not
true today?
Speaker 1 (12:45):
Tonight at seven point five KARC.
Speaker 8 (12:49):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (13:08):
You're listening to Simply Money is noted by all Worth Financial,
umbob sponseller along with Brian James. If you can't listen
to Simply Money live every night, subscribe to get our
daily podcasts. And if you think your friends or family
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Speaker 3 (13:24):
Couldn't tell them about us as well?
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Just search Simply Money on the iHeart app or wherever
you find your podcast. Straight Ahead at six forty three,
how to handle a deferred compensation plan, what to do
when your rental properties have skyrocketed value, and where to
put your money once you've maxed out your retirement accounts.
Speaker 3 (13:46):
We see it all the time.
Speaker 4 (13:47):
Investors are increasingly searching for ways to stay invested in
equities or stocks. But they want to built in shield.
They want exposure without that gut punch that invariably come
when the markets go down, and they don't want to
be sold products with high commissions and fees.
Speaker 3 (14:05):
So what do they do? Brian, Well, what.
Speaker 5 (14:08):
We look at is we look at let's start with
the data here what actually happens. So in twenty twenty
five so far we talk about these from time to time,
but buffer style ETFC, these are exchange traded funds that
look to limit downside losses.
Speaker 6 (14:23):
While they've drawn in about nine point.
Speaker 5 (14:24):
Seven billion in inflows and more the more traditional low
volatility or kind of growth index arrangements that we're more
comfortable with, those have seen only about two and a
half billion in outflows. So now what we're seeing is
obviously more flowing into the buffer side, and it's kind
of coming out of the low volatility index stuff. The
reason for this is because of what they do, so
(14:45):
a buffer or what's called a defined outcome exchange traded fund.
These are the types of funds that blend equity exposure,
so that's the growth that we all come to love
with a bit of an option's overlay, meaning that yes,
they are trading options. This is not an aggressive speculative.
This is in a sort of portfolio insurance manner, and
they're looking to buffer or reduce those losses overs over
(15:06):
a specific range, so kind of think of as a
safety net. You're going to give up some of the upside,
of course, but that's in exchange for some of the
some protection on the downside. For example, the first ten
percent of losses might be absorbed, so if the market
drops eight percent, that ETF may only decline two percent,
depending on the structure.
Speaker 6 (15:24):
But on the flip side, that's the good part.
Speaker 5 (15:25):
On the flip side, Bob, often there's a gain, there's
a cap on the gain. So if the market actually
goes up twenty percent, that exchange traded fund might not
get any more than fifteen percent. So you're going to
give up some of the upside in exchange for a
little bit of protection on the downside over a fixed
period of time, and it's usually about a year after
which that that buffer is going to reset into a
new frame or there's some kind of new time structure, all.
Speaker 3 (15:48):
Right, Brian.
Speaker 4 (15:48):
I love these things for the right kind of investor,
you know, the folks that know they need to be
involved in the market to get that return to hit
their long term financial goals that we talked about all
the time as of a financial plan, but they just
can't emotionally stomach the historical volatility of being all in stocks.
These are great options for those kind of people. And
(16:11):
let's just put you know, put the cards on the
table here this strategy. What is it competing with these
indexed annuities that are being sold left and right by
non fiduciary, commission based people where huge commissions are involved.
The lock up periods, surrender charges are huge. The thing
(16:32):
I love about these buffer ETF strategies, and you already
said it. You typically, if you're going a good, responsibly constructed,
you know strategy around these things, you can reset it
after one year, you can get out at any time.
It's liquid, so you got a lot of options if
your goals and these change, and as the market changes,
(16:52):
the buffers and the changes and the index by which
you want to tie these things.
Speaker 3 (16:57):
Too can change.
Speaker 4 (16:59):
You have a lot of flexibility if you're working with
a good fiduciary advisor and an actual strategy versus just
being sold a product by a commissioned salesperson.
Speaker 5 (17:10):
How about that for a Thursday morning rant? Oh you
know how we love your rants. Bob rants are a
great way to start the day. So, yeah, these are
in the right situation, I think I want to drill
into you know what you just said there, In the
right situation.
Speaker 6 (17:23):
These can make some sense.
Speaker 5 (17:24):
But at the same time, if you are somebody who
has you understand market history and you don't panic when
the market wobbles, and you know that there's a cycle
to things and things come and go, then you might
be leaving money on the table just for the exchange
of protecting yourself during a period of time you probably
weren't going to panic and sell anyway. So just recognize
there is a bit of a sacrifice involved here, and
(17:45):
I think this is important to call that because these
things are getting out there. As we said, there's there's
a lot more. The big players out there are are
launching bigger versions of this. It's becoming more popular. So
black Rock just launched one called the Ice Shares Large
Cap ten percent Target Buffer, and that's the whole the
whole point of it, obviously, is it's supposed to protect
you against the first ten percent of losses against the
(18:05):
S and P five hundred ark arc is. That's run
by Kathy Wood. Her name pops up in financial media
all the time. She's got one coming out as well.
And investors are throwing money into these things. As we
said earlier, there's more flowing under the buffer side most
recently than there is on the on the more traditional side.
So just understand what you're getting into if you choose
to get into these, understand what they do and more importantly,
(18:26):
understand what they do not do well.
Speaker 4 (18:29):
And then there's actual portfolio strategies, you know, where you
take a bunch of these different buffer at ETF and
pair them together, so you've got access to a lot
of different indices, and you do have an actual manager
in the background taking a look at when it's the
right time to reset the strategy. Again, this comes down
(18:50):
just to boil it down real simply, Brian, and you
know this when we sit down with somebody and actually
do a financial plan and an asset allocation strategy. It
comes down to this, there's an amount of risk you
have to take in your portfolio to get the return
you need to get to achieve your goals.
Speaker 3 (19:08):
That's one part of it.
Speaker 4 (19:10):
And then there's the emotional amount of risk that somebody's
willing to take to keep from waking up in the
middle of the night worrying about the stock market.
Speaker 3 (19:19):
So, like you said, in situations like.
Speaker 4 (19:22):
This where we've got to have people involved in the market,
but we got to buffer that emotional risk by knowing
upfront what our downside limitations are. These can work wonderfully
get people where they need to be in terms of
an asset allocation without them feeling like they're just getting
thrown to the wolves without any downside protection whatsoever. And
(19:45):
it's in those situations where these can work out great
because the phone call no client ever wants to make,
and no advisor wants to get is that phone call
that says, hey, I can't take it anymore, get me out,
move me to cash, and I'll wait until things are
quote unquote better. If that situation ever happens, the advisor
(20:07):
didn't do his or her job, the client didn't do
their job, and it can end up in a disaster.
Speaker 3 (20:13):
So that's where these things.
Speaker 4 (20:14):
Can really work out, as you said, if they're fitted
to the right situation in a truly comprehensive financial plan.
All right, here's the all Worth advice. Protect what matters,
don't lock away your upside though, use buffer etf smartly
and selectively, always informed of their boundaries and their costs.
(20:36):
It's a question many people will ask on the path
to financial freedom. Should I rent or buy a home?
We'll help you answer that question coming up next. You're
listening to Simply Money, presented by all Worth Financial on
fifty five KRC the talk station. Chicago is a hell
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(21:00):
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Speaker 3 (21:14):
You're listening to Simply Money? Is that about all Worth Financial?
Speaker 4 (21:16):
UNBOMP sponseller along with Brian James, joined tonight by our
Real Estate expert Michelle Sloan, owner of Remax Time. Michelle,
thanks again for spending time with us tonight, and you
want to talk about something that's always a fascinating topic
to me, and I know Brian loves this as well,
just the conversations that we all get into nowadays on hey,
(21:38):
does it make more sense to rent a home or
buy a home?
Speaker 3 (21:42):
And what are the pros.
Speaker 4 (21:43):
And cons from a financial standpoint and a cost standpoint.
And I know you've got a lot to offer on
this topic, walk us through it tonight.
Speaker 2 (21:52):
You know, it would be smart of me as a
salesperson to always say you should buy a home, but
you know, after doing the twenty years, you know I
have to be so realistic when I sit down with
clients who are interested in buying a home, because there
(22:15):
is a lot to consider when it comes to buying
a home and maybe, depending on your specific situation, renting
is the better move.
Speaker 7 (22:26):
So we'll break.
Speaker 2 (22:27):
It down a little bit with our pros of renting,
O pro our cons of renting, the pros of buying,
et cetera.
Speaker 7 (22:34):
Are you ready?
Speaker 3 (22:35):
I'm ready?
Speaker 2 (22:37):
Okay, all right, Well, the first pro of renting is
there is a lower upfront cost the barrier to entry. Basically,
you only need likely a security deposit, maybe first month's rent,
an application fee of fifty dollars, and you can live
(22:58):
in a property. That's a good thing. That's a pro
for renting. When it comes to buying, certainly you're going
to need a much larger down payment. You're going to
pitch of a couple hundred thousand dollars, so you might
need twenty thousand dollars. You may and a lot of
people don't have that in their bank account. So that's
(23:18):
that's the first barrier to buying a home is having
some cash on hand. And so saving is so important
when I can when I consult with buyers or want
to be buyers, is you know what, it takes time
to build up the savings that you need to buy
(23:39):
a home. So number one, if you don't have that,
renting may be your only option. And that's okay, as
long as you can try to find a way to
start saving because in the end, and this is the
way sort of the world goes around and around. As
you're younger, you don't have a lot of savings and
(24:00):
you're not making as much money as you get a
little bit older and your job becomes more stable, then
you're thinking about Okay, I mean to start a family.
Now it's time to start thinking about buying and having
that nestech is so very important.
Speaker 5 (24:15):
Well, Michelle, what would you say that the average time
is if somebody knows they're going to be somewhere, you know,
for a certain amount of time, when when is that
that sort of break even point? If you're going to
if you know you're going to stay put for this
many years, then it's safe to buy, versus if you
may have to move in two or three years, that's
a little bit dice.
Speaker 6 (24:32):
You might want to consider renting. Do you have a
break even for that?
Speaker 2 (24:35):
Yeah?
Speaker 4 (24:35):
I do.
Speaker 2 (24:36):
Actually, that's a great question. Because mortgage rates are high
and home prices are high, it often takes longer for
the benefits of buying to actually catch up with renting.
So for that break even time, it's anywhere between six
and eight years. So if you're planning on staying in
(24:56):
your home for six to eight years, that's when it's
definitely time for you to consider buying. If you're going
to be bouncing around and you don't know if your
job's going to be stable, or if you personally are
just not sure you want to live in a particular
area and you're going to move within a year or two,
guess what you're likely to lose money on that investment
(25:19):
and buying a home. Although it's very emotional and it's
where you live, and it's where you it's all of
the things that go along with buying a home, it
is an investment and it's one of the biggest and
most important investments that you're ever going to make. So
when you make it with the and you're very thoughtful
(25:40):
about it, that's so important. So if you're planning on
staying in a home for less than six to eight years,
you may consider renting. Now, No, you're never going to
build equity when you're renting. That's the other con of renting.
You're not paying yourself. You're actually paying the person who
(26:00):
owns that property, and you're paying for them to build wealth.
And so wealth building is extremely important in the real
estate industry, and it's important in your industry too, right
because you look at those kinds of folks that have
homes or multiple properties, and we look at how the
(26:21):
increase in value of those properties will continue from year
to year and you know that's part of your portfolio.
Speaker 5 (26:31):
Okay, So falling off the timing question again, do you
see people relying on arms on adjustable rate mortgages now,
now that we're in a declining rate environment, are people
kind of taking that risk of needing to refinance in
three or five years or do you see people locking
them in for longer term fix.
Speaker 2 (26:46):
Most of my clients, you know, like the stability of
either a fifteen or a thirty year the arms in
my opinion, and again I don't do the mortgage side
of things every single day. I think it's an option
and an opportunity, but there's a lot of people who don't.
They feel like if you do a five to one
(27:06):
arm or a seven to one arm or whatever, that
is knowing that we don't know what the future looks
like in five years. It could be worse than it
is today. And if you're doing an interest only loan
and you're only paying the interest, you're never really you're
just again sort of spinning your wheels. So you definitely
want to talk to an expert in the financing side
(27:29):
of it, the mortgage industry, and really see what is
best suited for your budget. And your personal situation.
Speaker 4 (27:40):
Michelle, I want to go back to your example, and
first of all, I want to call out and just
say thank you for your transparency and your honesty and
be willing to well. I'm being sincere because I know
the way you operate. You're you truly operate like a
good fiduciary advisor, not just a real estate salesperson. And
that's why we, you know, think so highly of you
(28:01):
and trust you and love having you on the show.
Speaker 3 (28:03):
So I mean that sincerely.
Speaker 2 (28:04):
Thank you.
Speaker 4 (28:05):
The point I want to add to your prior comment
is for those folks that maybe aren't in that six
to eight year window now, the key thing is to
not go through lifestyle creep and just because you're renting,
spend one hundred percent of your discretionary income so you
don't build up that emergency fund earmarked for a home
down payment, right, And is that what you talk about
(28:26):
to your clients that maybe aren't ready yet, but you
know need to be ready in four or five years.
Speaker 2 (28:33):
One hundred percent. You always want to be planning for
your future, so finding ways to save, even if it's
a couple of bucks some months or you know, one
hundred dollars here, fifty dollars there. Definitely setting that money aside,
not only for buying a home, but you know, just life.
You never know what's going to happen along the way,
(28:55):
and if you are prepared for any you know, your
cars down, okay, if you have no emergency fund, you
can't fix your car, you can't get around. So it's
the same thing with the house, and it definitely is
starting to put money away is so important. The other
thing that I'd like to tell buyers real quick, and
(29:17):
I know that we're up against the clock, is checking
your credit because having good credit will go a long
way for getting the best rates when it does come
time for you.
Speaker 9 (29:29):
To buy a house.
Speaker 3 (29:30):
Great point and very important point. Thanks as always so much, Michelle.
Speaker 4 (29:34):
You're listening to Simply Money, presented by all Worth Financial
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Speaker 10 (31:54):
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Speaker 3 (32:56):
Mark your opinions are welcome to here. I do think
he is too old to run.
Speaker 2 (33:00):
In twenty twenty four.
Speaker 1 (33:01):
Fifty five krs. The talk station.
Speaker 4 (33:08):
You're listening to simply Money percent of my all Worth
Financial on Bob Spon Seller along with Brian Jains. Do
you have a financial question you'd like for us to answer.
There's a red button you can click while you're listening
to the show right on the iHeart app.
Speaker 3 (33:21):
Simply record your question.
Speaker 4 (33:23):
And it will come straight to us Brian, Jason or
John excuse me, and Mason leads us off tonight, he says,
we've been building cash reserves waiting.
Speaker 3 (33:33):
For a market ball back, but it never seems to come.
Speaker 4 (33:36):
How do we decide when to put that money back
to work without guessing wrong?
Speaker 5 (33:42):
Well, I hope you haven't set aside too much because
this is kind of the what we're living through right now,
the reason that we don't want to do those kinds
of things. At the end of the day, what you're
trying to do is time the market. And you know,
whether that's done out of fear or greed, it's still
timing and it's not something we can control. We can
be right nine times in a row, and that tenth
time comes back around to get you. So, you know,
(34:04):
even even with money paying four or five percent on
money markets, inflation is still eating away. You're purchasing power
over time, So missing just the ten best days in
the market over twenty years can cut that return in half.
So really, what should you do now? I'd say stop
paying attention to the market. You know, maybe do maybe
do a little quick math and figure out exactly how
much has been left on the table over whatever this
(34:24):
time period is that you've been sitting in cash, Just
so you can be reminded not to, you know, not
to try to pull the strategy too many times. But
if you're nervous about putting it all into once because
you feel like the train has left the station, spread
it out over time, you know, maybe divide it by
six a little bit over over the next six months
and then let it go. Let it do its job.
Don't be surprised when the market pulls back. That's a
guarantee I can give you it's gonna happen. But this
(34:46):
is you know, I hate to see people thinking they're
making responsible financial decisions. Then they wind up throwing the
money in and the market does take a downturn, and
then those people tend to decide that the market has
targeted them for failure. The market could care less about you,
or your goals or your money. It's going to do
what it does. You have to learn to let it
do what it to, how to ride it and not
try to tap dance in and out of it.
Speaker 6 (35:06):
So let's move on to Greg in Westchester.
Speaker 5 (35:08):
So Greg's got a slug of company stock and his
retirement plan. He's concerned that it's become a pretty big
part of his portfolio, and he's asking, Bob, are those
option strategies like Collers protective puts? Is that realistic for
an individual investor?
Speaker 4 (35:22):
Or?
Speaker 6 (35:22):
Is that better left to the institutions.
Speaker 4 (35:24):
I think they're absolutely appropriate for individual investors, and I
wish more individual investors knew about them and actually use that.
That being said, they're awfully helpful if you're working with
a good fiduciary advisor that even knows what things these
things are and how to deploy them.
Speaker 3 (35:42):
So let's get into that a little bit. A protective put.
Speaker 4 (35:46):
I mean, sometimes our industry does a great job of
making this stuff, you know, seem way more complicated than
it is. Think about if you've got a million dollar home, Okay,
you would not sit out there with that home and
have no insurance on the house. Right if it burns down,
you know, or a flood comes through or whatever and
wipes it out, you're you're eliminating a big chunk of
(36:08):
your net worth. Same thing with the stock. All the
protective put is is I am buying an option to
sell that stock at this price by this set date,
and you got to pay, you know, a premium to
do that. You know, just treat it like an insurance premium.
If the stock keeps going up and you hold that
put to expiration, it goes away and that's a lost
(36:32):
you know cost to ensure that stock, just like you know,
premiums you pay on your home. If the stock starts
to go down, you don't have to hold the put
to expiration. You can sell it if you get that
eight ten percent pullback, what have you. You can always sell
the put for a profit. But you got the protection
and if you were right and the stock went down,
(36:52):
you were protected and made a little money on the
down on the you know, with your downside protection. All
a collar is is an a to help get some
of that insurance paid for. Meaning you sell a call option,
meaning you're you are willing to sell your stock by
a certain date at a certain price, and you receive
(37:12):
a premium in order, you know, in return for selling
that call option, and that helps pay for the call
op or the put protection. So you know, in a
caller strategy, you want to spread these things apart a
little bit and usually you know that way, you have
a little bit more upside left. You know, things continue
to go up, but you're helping pay for some downside protection.
Speaker 3 (37:34):
It's a wonderful strategy.
Speaker 4 (37:37):
Unfortunately, a lot of people have no idea what I'm
talking about, including advisors, and don't know how to put
this into a responsible financial plan.
Speaker 3 (37:46):
Hope that helps.
Speaker 4 (37:47):
Greg, all right, Michael and Hyde Park says, I'm being
offered a deferred compensation plan, but I'm worried about company solvency.
Speaker 3 (37:55):
How do you evaluate that kind of risk.
Speaker 4 (37:57):
Before committing to even get involve the deferred comp plan?
Speaker 6 (38:01):
So yeah, Michael, congratulations.
Speaker 5 (38:03):
Obviously you're you're working for an employer that has put
together some great benefit plans for their for the employees.
For those who might not know a deferred compensation plan,
This is not a four to oh one K. This
is something in addition to a four oh one K.
Four oh one K, of course, has its own limitations
of how much money can go in somewhere between twenty
three and thirty thousand dollars depending on your age. That
is available to everybody out there. A deferred comp plan
(38:25):
is different. It's not made available to everybody, to absolutely everybody.
It's usually an executive type of a plan, something for
higher income owners generally speaking, but also the big risk
and Michaels already clued into this.
Speaker 6 (38:38):
These are assets of the company.
Speaker 5 (38:40):
What that means is that a deferred comp plan is
it's a It could be a acclaimed by a creditor.
If that company ever gets sued by somebody, or or
goes bankrupt or whatever. That basically means that these assets
are exposed. You're four oh one K. That is not
that is very clearly walled off. Nobody can touch it.
Speaker 6 (38:57):
So what do you have to do?
Speaker 5 (38:58):
You have to treat this like any other company. Forget
the fact that you work there. Make sure you understand
your own company's credit ratings. If it's publicly traded. What
is their debt load, what are their financial statements look like?
Look at trends and cash flow profit margins, have they
made layoffs recently? And you can even ask HR for
planned documents that they should be shoving them in your
face anyway, if you've got this as an option, but
(39:20):
make sure you understand exactly where that goes.
Speaker 6 (39:22):
So, yes, you're right to identify some risk.
Speaker 5 (39:23):
There could be a good opportunity here, but it could
also be risky as well, so just make sure you
understand what you're getting into. But otherwise those can be
really beneficial programs. So one more quick one. Alison and
Lovelin's got some rental properties. They've gone up, but the
maintenance is wearing them out. So would she asks Bob
what are their best exit strategies? How can they get
out without triggering these massive capital gains of real estate?
Speaker 3 (39:44):
Well, I got to move quick here, Alison.
Speaker 4 (39:46):
The most popular option is to use if you don't
want to have maintenance headaches and be a landlord anymore,
at Delaware statutory trust better known as a passive ten
thirty one alternatives, So you basically put your property in there.
It gets sold and you get diversified into a professionally
managed portfolio of real estate. You defer the capital gains
(40:09):
and you convert this to an income stream. The only
thing is they're typically a little bit illiquid. You got
to be willing to hold them for five or ten years.
But it can be a good strategy to defer and
spread out that capital gains headache, and also get yourself
out of the landlord and you know maintenance business, which
a lot of people want to do is they head
(40:31):
toward retirement. All right, coming up next, some advice on
keeping money from wrecking your relationships. You're listening to Simply Money,
presented by all Worth Financial on fifty five krz the
talk station, Mark Levin.
Speaker 6 (40:45):
Reliable information and of course not just one sided view us.
Speaker 1 (40:49):
That affects you at the top end to bottom of
the hour, fifty five krz the talk station.
Speaker 4 (40:59):
You're listening to some money It's not up by all
Worth Financial on Bob's Fond Seller along with Brian James.
Did you know that more than one in three Americans
say they have lost a friendship because of money, according
to a new survey.
Speaker 3 (41:13):
From lending Tree.
Speaker 4 (41:14):
They say financial stress disputes or mismatch spending expectations have
driven a wedge between people they once called friends.
Speaker 3 (41:24):
Brian, this is a shame. Walk us through it, well, Bob.
Speaker 5 (41:26):
We've got a survey here showing four out of ten
admit having had disagreements with friends over money, and about
a third of them feel pressure to match their friends spending,
and about one in three, Bob, have lied about how
well they're doing financially. Well, this shows us that money
can be a bit of a minefield. This is one
of the last domains where we actually reveal our vulnerabilities
because people can see what we spend money on, income, debt,
(41:46):
our fears, aspirations. When all of our friends are at
different stages or just have different attitudes for how this
is working for him, these differences can really magnify between people,
and it can drive a wedge between between people who
otherwise we're good family members and friends.
Speaker 3 (42:01):
Well, Brian, what this comes down to me is just, uh,
I'll just say it. Insecurity.
Speaker 4 (42:06):
You know, you've got people that have a lot of
money where their whole identity is tied up in their
wealth or you know, their income, and they like to
you know.
Speaker 3 (42:14):
Lord it over people.
Speaker 4 (42:15):
They talk about their country club membership or their expensive vacation.
You know, they they want to make everybody know that
they've made it and they're doing great. If you're if
you're around people like that, you got to question whether
they are truly your friend, because if they're gonna if
they're going to hang that over your head and make
you feel like less of a person, I would say
(42:36):
that's not really a friend. On the flip side, if
you've got people that hang out with folks that have
some money and you've got less money, and you're expecting
that person to pay for your stuff, pay for your dinner,
you know, all that kind of stuff.
Speaker 3 (42:50):
You know, that's not good either.
Speaker 4 (42:52):
So I think it comes down to not tying your
identity to money.
Speaker 3 (42:57):
True friendships, UH can.
Speaker 4 (42:59):
Put all that kind of stuff aside, have a little
bit of a feel for where your friend really is
financially and treat treat one another with you know, mutual
respect and dignity, and uh, keep from getting into you know,
all these kind of messes. I hate to see relationships
end because of money. Here's the all Worth advice. Prevent
money from becoming that silent wedge. To find your terms,
(43:22):
talk early, protect both your financial peace and your friendships.
Thanks for listening tonight. You've been listening to Simply Money,
presented by all Worth Financial on fifty five KRC The
Talk Station.
Speaker 1 (43:34):
I want to know what's happening.
Speaker 10 (43:35):
I know what's going on around town, around the country.
Speaker 1 (43:38):
I need to know the weather, in traffic.
Speaker 10 (43:41):
I want to know what's happening on my local school boards.
Speaker 1 (43:43):
I want to know that too.
Speaker 2 (43:44):
If I don't know what's going on, how can I
have a valid opinion.
Speaker 10 (43:48):
Knowing is like massaging your brain, and it's pretty easy
to do, right.
Speaker 8 (43:53):
I do it every.
Speaker 4 (43:54):
Day, and then I listen on the way to work
every day, the home, and then
Speaker 1 (44:00):
You'll know unch fifty five KRZ The Talk Station, The
Guru of
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