Episode Transcript
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Speaker 1 (00:00):
This is the Retirement Solution Podcast with financial advisor John Hicks,
founder of Jayhagen Capital.
Speaker 2 (00:07):
The tech sector continues to be the darling of Wall Street.
But with AI coming along, what does it mean for
our investments and our savings? I'm head the branch. This
is financial advisor John Hicks, founder of jay Hagen Capital,
who is here to help us at least attempt to
begin to understand. When it comes to technology, I'm not
(00:28):
sure that there is any full understanding because it moves
so fast.
Speaker 3 (00:32):
That's what the biggest trick.
Speaker 2 (00:33):
About it all is how fast it all moves, trying
to keep up with the available information, how it affects us.
And then here comes as I was saying.
Speaker 3 (00:42):
AI, sure, well, I mean everything is moving fast. Now
what are we three or four weeks into a new
administration and it is like light hyper speed. Trump two
point zero is boldly going where no one probably ever
should I mean boldly going where no person has gone
before or whatever you want to say. No, Like, here's
(01:03):
the craziest thing. So with AI, I think there's going
to be a true evolution and a change of how
we do almost everything. Guys, if you haven't seen some
of the studies and some of the research reports on
what artificial intelligence can help us do, not just think
better or work through problems. It can spot like they
can have these drones that go out over crops and
(01:23):
it can spot the areas that may need some herbicide
where the rest of the crops don't need herbicide at all.
So not only is it potentially cost savings, it stops
all those those herbicides from getting on everything and damaging
all of the food and the water systems and everything.
It is amazing what can do. So do I think
there's a crazy opportunity for AI to do great, Yes,
(01:44):
But we just recently saw We just recently saw in China,
one little gyration, one piece of new information can cause
the entire stock market to corene you know, two percent,
three percent in a single day, right yeah, and right
now a lot of that stuff is so it's really interesting.
So you add that, add that to the fact that
(02:05):
Trump two point zero is acting in ways like one
point zero, but with more speed and more viciousness. Now
we're talking about tariffs, everyone's gonna have a terrify on
them minute. If it don't like what you're saying. Tariff tariff, tariff, tariff,
and then all of a sudden, the markets are going
crazy about this, right, So the interesting thing is, we're
gonna have a lot, in my opinion, we're gonna have
(02:27):
a lot of volatility, like a lot. So when you
have the AI revolution or evolution, depending how you will
look at it, causing all kinds of volatility. Now we
have an administration who doesn't appear like they're going to
back down to anyone. And in the long run, I
think that I agree with almost all the stuff that
they're talking about doing at least enhancing things, right, finding
government failures, finding government inefficiencies, you know, finding ways that
(02:51):
we as Americans can pay less tax dollars hopefully but
get the things that we need for a country to
keep us safe and protected. But if you do it
all at once and you have trade wars at the
same time, and we have issues because again some of
these trade wars, some of the AI is coming from Jina, right,
so coming from China, this could be issues. So Heather,
(03:11):
all of this comes together. So I know we're talking
about AI, but like, the amazing thing is is that
all of this is intertwined with what I'm going to
say that AI is going to absolutely create more of volatility,
tremendously more volatility, because this show is about understanding our
refinances in retirement or how do we get to retirement,
to get through retirement, Volatility is one of the things
(03:31):
that will crush every one of us if we don't
have a handle on it. So, regardless of AI, there
is an unfortunate situation where if we have a tremendous
amount of volatility, even good plans, if you can't stick
with them, potentially blow up. Yeah, that's just how that goes.
Speaker 2 (03:45):
Yep. We have obviously seen companies like in Nvidia. We've
talked a lot about that on our radio program and
on our podcast, how Nvidia has helped prop the S
and P five hundred up the talk the conversation. As
you were just saying about the AI, the startup in
particular Deep Seek has been the name that's corrept into
(04:05):
the conversation.
Speaker 3 (04:06):
I know. So suddenly the past week, couple weeks ago.
Speaker 2 (04:10):
Deep Seak, It's like what and here we are everybody
is talking about It came out of nowhere and just
like that Naszac drop boom six hundred points. Absolutely, as
you're bringing up AI. Is it too volatile? Will it
increase volatility? Here is asset manager Kevin Mann talking about
it on Fox Business.
Speaker 4 (04:28):
AI is in debt. In fact, I still claim that
we're just in batting practice of a double header. So
this is a long road and a long path forward,
and those companies that aren't investing in AR now are
likely to be the losers down the road.
Speaker 2 (04:43):
All right, So did you start by saying AI is
not dead? Who is saying that it is? First of all?
Speaker 3 (04:49):
So it's interesting. So that's a really good point. Yeah.
I saw a lot of reports that came out saying, hey,
because of deep Seek, all of the stuff that we've
been doing as Americans, basically, all the stuff we've invested in,
it's gone up Meta Microsoft, in VideA. We may have
been investing in the wrong technology because when this Deep
Seek came out, what the Chinese said, and no one
can verify this shit, but what they said was, hey,
(05:10):
not only can we do AI really close to you, guys.
They didn't try to say it was better yet. Yeah,
but we can do it for a fraction of the cost. Now, guys,
this is a big deal because when you look at
the computing power that it takes to run these these
these nano computers and to do a ton of them.
With all these processing and computing things that AI has
to do, they were talking that we were going to
have to triple our energy consumption just to keep these
(05:33):
computers running and making decisions for us. Right, So, we
have invested a tremendous amount in VideA, Microsoft, Amazon, Apple,
all these people have invested psycho billions and billions of
maybe even trillions of dollars into infrastructure develop these these
power type plants. China comes out and says, yeah, we
can do that on pennies on the dollar, and all
of a sudden, every one of those companies just got
(05:54):
like a Mike Tyson punch right in the mouth. Now
here's the question, because we're talking about investing. Now, yeah, yeah,
should you invest in those things? In my opinion, I
agree with exactly what Kevin said. I think that AI
is here to stay. But market prices are kind of expensive,
they're kind of high. Now they've come down a little
bit over the last couple of weeks, but they're going
to again, coming back to my original point, things are
(06:15):
going to be very volatile. If it's true that we're
just in the batting practice of a double header. Now,
if you guys are baseball fans out there, I'm a
huge baseball fan, But like if you have a game,
your standard hitter is going to get to the plate
four or five times. So in a double header, that
may mean that we're in batting practice. We may have
ten at bats the next ten years. Some of those
(06:36):
at bats we may strike out. Right, there's where that
volatility comes down. There's where the AI doesn't do the
way we want. And some of those at bats we
may get on base, we make get fortunate, maybe even
hit a home run. But there's going to be a
long time that we're going to have to think about
how this AI is going to work out. Now, what
I want to add to that is, and again I
have to consistently bring this in because it's going to
(06:59):
shape all of us with the administration and specifically President
Trump is doing is potentially adding more volatility to the structure.
Why am I saying that because a lot of these semiconductors,
a lot of these chips, a lot of these these
these minerals, these deep earth minerals that we need to
create chips and semiconductors in AI. Those come from other countries,
(07:21):
and if we have tariffs on them. I'm not saying
it's a right or wrong decision, but I'm saying though
all of a sudden, no one really knows what the
cost is going to be. Do we import this steel?
Do we export steel to China for them to make things?
What about titanium, what about lithium? What about all these things?
What are the costs going to look like? Because all
of a sudden, if we increase cost, what does that
(07:41):
do to AI? Well, it a very minimum is gonna
it's going to diminish its speed that it can take place,
or it's going to get much more expensive. So that
compounded with the idea that China has already come out
and said, hey, now again, China is notorious for not
telling you the truth. Yeah, let's just be straight up.
I'm not going to say they're liars. They are. I'm
going to say they are notorious for not telling the
truth or telling their version. So when you think about
(08:04):
what may be happening, guys, I want to be very
clear on why I'm going this direction and going the
speed because I think that the Trump White House is
going to do positive things in the long run. I
think that we can have a lot of short term
absolute punches in the face where we're gonna have to wonder, wow,
I just struck out three times in a row. Do
using that baseball analogy again, in a doubleheader, I may
have just struck out three times in a row. The
(08:26):
question is are we going to leave that hitter in
the lineup? Are we going to pull them out? Right?
So those are those things to start thinking about. Those
are things that again, if we're just talking about AI,
I think it's a little bit of a different conversation,
but you can't talk about artificial intelligence right now if
we're potentially doing international negotiations, especially when we're talking about tariffs. Again,
(08:47):
I'm not against tariffs. I think if it causes are, frankly,
even our allies to play fair with us on trade.
I do agree that we've been treated incorrectly when it
comes to trade fairly in this country for a long
period of time, not just the previous administration. That's just
because we weren't very good at negotiating for a while,
and I think that they're going to make everyone come
to the plate. So having said that, though there is
(09:09):
going to be tremendous volatility, so you're going to have
to have conviction in the way you invest, right, So
that always comes down to and again what we're talking
about on this show is how do we fix our
finances in a way that we can stick with it
and win in the long run, which means retire on
our terms when we want, with as much money as
we want. And what I'm telling you is, guys, you're
(09:29):
going to have to buckle up the seat belt or
you're going to have to find different protections in your portfolio.
That is what my team is really good at doing.
Because I do believe in AHI. I think it's fabulous,
but I also very I've seen this happen a lot
of times. I don't want, because the market's really high,
people to take a twenty five to thirty percent hit,
which could absolutely happen. There are all kinds of gurus
(09:51):
that are saying, in the long run, we feel pretty good,
but could we easily have a twenty to a thirty
percent correction here? Yeah? I mean, realistically that possibility, especially
if no one knows how profitable companies are going to be.
Because if tariff's import taxes, export levies things like that
that'll factor in. Right. So again, Trump two point zero
(10:12):
is a little bit different than one point zero. He's
not taking no for an answer. That could be good,
that could be bad. And all I'm telling is the
markets like a little bit of gridlock. They like a
little bit of time to digest, and if they don't
get that time to digest, there's a lot of indigestion
that frankly happens. And that's where we're seeing it. We're
seeing a lot of volatility.
Speaker 2 (10:30):
Okay, helping you to understand how you can stay invested,
have some benefits and earnings on things like tech and AI,
while also adding layers of protection because if you're fifty
five and older, you don't fifty five. It has become
such a complicated age because it's not old anymore. Fifty
five year olds they still want to be invested. But
(10:51):
also we are starting to think about our retirement at
that age, and we don't want to make a stupid
mistake either.
Speaker 3 (10:57):
So the questions about can we afford it, yeah, or
fifty five to fifty nine? Can we afford a thirty
or forty percent? Here? That's right, even if it comes
back with it takes five or six years to get
back to even can we still retire what we want
to see? Those are the questions that are a little
different than Hey, how much money do I need to
put in to have a lot of money? The question
is how do I get this money to do what
I want it to do on my time?
Speaker 2 (11:18):
This is what John and his team are here to
help you figure out how to make your money do
which you not only wanted to do, but need it
to do to support you in the life you intend
to live in your retirement. Visit us at retirement solutionshow
dot com to get started on this conversation. We're here
to help you get some answers. Also have links posted
in the show notes so you can just click there
again It's Retirement Solutions Show dot com.
Speaker 1 (11:39):
Thanks for listening to The Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jahagen Capital by visiting Retirement Solution Radio
dot com. Be sure to listen to John's radio show,
The Retirement Solution Saturdays at eight am and Sundays at
nine am on NewsRadio eight forty whas Jay Haigen.
Speaker 3 (12:00):
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