August 18, 2025 • 38 mins
On Retire Right Radio, Host Dale Cooper and John Burdette from www.FourthAvenueFinancial.com discuss financial planning for different eras of your life and general strategies. Hear the encore presentation Monday at 1:00pm on our sister station, Charleston Business Radio 95.3 | 680 WKAZ
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Phone: (304) 746-7977
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Episode Transcript
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Speaker 1 (00:00):
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the realtor makes real estate dreams a reality, whether it's
residential or commercial. We've got Charleston to Huntington covered. Your
key to exceptional real estate experience is start here Meeks Realtygroup.
Contact us at Meeks dot us.
Speaker 2 (00:15):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five eight WCCHS
its employees or WVRC Media. This is retire Right Radio,
a weekly show from John Verdet at Fourth Avenue Financial
that aims to answer your questions about financial planning, investing,
and how to retire right. Fourth Avenue Financial is located
(00:38):
in downtown Charleston at one seventy Court Street. More information
online at Fourth Avenue Financial dot com. Join the conversation
by calling three oh four three four five fifty eight
fifty eight or text three oh four nine three five
fifty oh eight. On Retire Right Radio, let's go live
to the studio with host Dale Cooper and John Burdett
(00:59):
from to have any financial.
Speaker 3 (01:02):
And very pleasant Good morning to you.
Speaker 4 (01:03):
Thanks for tuning in to retire Right Radio and this
Monday morning in the month of August. It is the
eighteenth day in the month of August. I can't believe
we're almost on September. Kids are out all about at school. Yeah,
traffic was terrible this morning. A new traffic pattern this morning.
Did you notice everybody over in the left lane for
some reason in front of the school on Leo.
Speaker 3 (01:24):
Sullivan Way.
Speaker 4 (01:24):
Usually there's a lot of traffic there, but I think
the little the little littles were being dropped off at
the at the drop off past Virginia Street, and everybody
was just parked in the let like just waiting in
the left lane. So you get off the highway and
there's just like you have to like circle around everyone
to make a left hand lane on Virginia Street.
Speaker 3 (01:45):
I did not notice that. But the school is in it.
Speaker 4 (01:47):
It is, and I missed my I know what the
window is. When school's in, I need to get here earlier.
And usually I get here early anyway, so that's not
much of a problem. This morning, of course, it's a Monday,
and I got kind of delayed at the house and
stuff like that, and then I drove to work right
in the middle of everything.
Speaker 3 (02:01):
The school near me starts so early that I don't
have to worry now, that's nice. That's always nice. You
can put on to work for you this morning.
Speaker 4 (02:09):
If you need some help on how you can retire
right you have questions about your retirement health, you can
give us a call this morning. Three zero four three
four five fifty eight fifty eight three four five fifty
fifty eighth our number. You can text three zero four
non three five five zero zero eight threes are four
nine three five five zeros er eight. We're going to
talk a little bit about well, we talked a little
bit last week about risk, and this week we're going
to kind of pay that off a little bit and
(02:30):
talk about we're going to flip a risk over until
just straight fear. You know, I'm scared of losing everything.
Why don't I just have my cash and a mattress
in my spare bedroom and that's safe.
Speaker 3 (02:40):
Eh.
Speaker 4 (02:41):
You know, we're going to talk about that a little bit.
Things may not be quite as scary as what you
think it is, even when things look pretty bleak.
Speaker 3 (02:47):
But first of all, let's do.
Speaker 4 (02:48):
Kind of a rewind and take a look at some
of the action on the stock market last week, kind
of where the indicators are and stuff like that.
Speaker 3 (02:56):
Kind of an interesting week.
Speaker 4 (02:57):
Honestly, last week week started off kind of uh on
a part, the market did well.
Speaker 3 (03:01):
I think last week the market so the market was good.
Speaker 4 (03:04):
So so the bottom line was the market was fine,
but it was doing some battle with some competing indicators
as far as inflation and prices of things and stuff
like that goes.
Speaker 3 (03:12):
Yes, I mean, the first numbers came in great, everybody thought, hey,
the Fed's going to cut aggressively. You started hearing people
talking about even more than quarter point, right, you know,
half point and beyond two more this year or three
more maybe right. And then and then by midweek a
couple of other indicators were out that kind of showed
that well maybe not. And uh so we're back in
(03:36):
the wondering what the Fed is going to do. Still
the consensus and the market is pricing in a rate
cut uh here here shortly but uh but we'll see
what happens. You know, we've been talking for the last
year about all the rate cuts that we're going to
have and then we really haven't seen much of that.
So you know, of course that is also a good
(03:56):
sign that the economy hasn't hasn't crumbled you know, the
economy and the numbers are are still pretty good. The
labor market appears to be slowing down, but it's still growing.
It's not like we're shrinking, you know, the number of
jobs in the country. But but the rate of growth
is slowing, which which would argue for rate cuts. But
(04:18):
but we'll see what the the wisdom of the Fed
has here in the next month.
Speaker 4 (04:23):
It's crazy. It's crazy to watch this as it unfolds.
But again, when you try to analyze things on like
a micro level, when you're talking about something that's such
that that impact is on such a micro level, it's
it's sort of hard to understand what those numbers might
mean in the long term.
Speaker 3 (04:36):
I mean, all these things usually not play in hell,
and even a rate cut that happens, it really doesn't
filter through the economy for for you know, a good
number of months. So it's not like it's flipping a
switch and everything is great because the the rates are lower.
Remember as rates go down that it benefits some people
and it hurts some people, you know, those that are
living on interest bearing securities things like that that could
(04:59):
that could actually impact their income. Where a young person
buying a house might favor that. So, you know, even
rate cuts or rate increases, they don't cut across the
board evenly. There are winners and losers to everything that
happens in the economy.
Speaker 4 (05:17):
When if someone is out there looking for, you know,
to refine answer to buy a house or something along
those lines, and they hear about a potential you know,
quote unquote rate cuts that are coming, you know, like
with gas, for example, when the price of oil drops,
the price of gas does not drop.
Speaker 3 (05:33):
When the price of oil goes up, the price of
gas does go up. You know.
Speaker 4 (05:36):
It's it's it's an interesting the way that game plays
when it comes to interest rates in the mortgage market anyway,
generally speaking, that cut is reflected fairly consistently. Like if
there's a cut to the that the FED makes, that
is reflected to some degree in the in the downstream rate.
Speaker 3 (05:51):
Generally, when the FED is cutting rates, it's really cutting
the short you know, the shortest end of the of
the of the yield curve. So it's like the top
for the lever or the bottom of the level, I guess.
And then yeah, so and there again, I'm no mortgage expert,
but mortgage rates tend to track. The movement really more
of the ten year it seems, I think, because that's
(06:14):
about the average mortgage length something like that. You know,
you might have fifteen and thirty year mortgage, but people
move and pay off and that sort of thing. So
so you know, when lenders are lending, they're looking more
at that ten year rate. I believe to set that
and so that doesn't move in lockstep with what the
FED does. It usually moves in the general direction, so
(06:41):
it will have an impact. I had that question yesterday
from somebody that I know about buying a car. You know,
should I wait to buy a car if interest rates
are down? And it's like, well, it depends. You know,
how much are you going to finance, how long are
you going to finance it for? And if rates are
less in the future, does that overcome maybe a good
(07:02):
deal that you get today, Because the interest sometimes of
extra percent on a car or something like that doesn't
sometimes amount to as much as it might on a
home that's financed over a longer period of time. So
you know, it'll impact things differently and in people's decisions
a little differently. And like I say, it doesn't cut
evenly across the board. The good thing with the market
(07:24):
outside of the interest rate story is the earning story.
You know, we have the hope of lower interest rates
that we think we're going to get, which usually is
good for the stock market, but we also have growing earnings.
Earnings keep surprising to the upside, and that also has
(07:45):
been really the catalyst for the market moving forward over time.
The market valuations follower earnings, and as long as those
corporate earnings are coming in good, you know, that really
puts a backdrop of backstop under the under the under
the market.
Speaker 4 (08:00):
I have a theory, although there has to be you know,
media surrounding financial news and the different industries and things
like that, there obviously has to be coverage of those
sorts of things. It's it's of the public interest to
cover those things. But I think that people tend to like,
I don't know that it's great that people know that
and things like that. There obviously has to be coverage
of those sorts of things. It's it's of the public
interest to cover those things. But I think that people
(08:23):
tend to like, I don't know that it's great that
people know the names of the CEOs of these companies
and the guys that like that they've become sort of
like cult figures, regardless of wood is whether you know
people automatically think of Elon Musk. But also, I mean
you have Sam Altman from open Ai and things like,
I mean, people that comment on absolute everything anymore and frankly,
other than their business. I don't know why we care
(08:44):
all that much, and and I think that we play
too much into that. Like Sam Altman said this about
who cares what he said about healthcare. That's not just
you know, it's like sometimes I think we give these
guys too much headline juice just because they're they're rich.
When Sam Altman couldn't tell me anything about my wife
other than if I pay for for open Ai or not.
Speaker 3 (09:04):
Oh yeah, yeah, Oh well, I don't know. There's something
about people in the public eye. It's like the uh,
you know, the Hollywood folks making comments on politics or
this that or the other. I mean people just exactly
you know, you're famous, and you know why are those
cus fameous? Well, I mean they run big companies and
they are the innovative companies, and uh, you know, people
(09:28):
look at them like they've got some special sauce. But
you know, they they they're wrong, and just like everybody
else's sometimes.
Speaker 4 (09:39):
We sometimes, I think, substitute their company with them. And
and for all the problems that some people feel that
Elon Musk has had with public facing, I mean, Tesla's
a separate entity than than the man himself, and so
you can't really you shouldn't really confuse those things when
you're trying to make investment decisions or anything else. I mean,
I guess you could. I mean, if you don't I
(10:00):
want to invest in something because you have a personal
problem with I mean, that's one thing, But don't let
the headlines and all the different things mess you up
too much when it comes to that.
Speaker 3 (10:07):
Yeah, I mean, you need to stay focused on what
your goals are. You need to, you know, focus in
on your time horizon and make your investment decisions based
off of your needs, not from a statement, whether it's
a CEO, a famous person or even a politician. Yeah,
you know, what is what is the important thing for
(10:27):
me in my life? And how do I structure my
finances around that?
Speaker 4 (10:31):
And you can you can find that out. You can
have your situation evaluated and come up with what's best
for you, not by searching around online or finding what
your favorite celebrity's opinion is or your favorite billionaire's opinion is.
But John's opinion is going to help you out a
lot on those and you want to put the experts
on your side, you can call us this morning. You
can start right now by calling three zero A fourth
three four five fifty eight fifty eight three four five
fifty eight fifty eight. You can also find out more
(10:52):
information online about Fourth Avenue Financial. You can go to
the website Fourth Avenue Financial dot com where you spell
out the whole thing Fourth Avenue Financially. You can find
all kinds of information there, sign up for newsletter. You
can also like the page on Facebook. You do that
same search and like the page over there. A couple
things we're going to talk about this morning, and again
you're welcome to give us a call with anything that
you want to ask questions about how and how you
can retire right about your specific situation. But we're going
(11:13):
to talk a little bit about the other end of
talking about risk. We talked about risk a little bit
over the last couple weeks when Logan was in here
and last week with John and I. But this week
we're going to pay that off with risk turning into fear.
Some people can get so paralyzed by either movement in
the market, headlines, change of presidential administry, whatever it might be.
(11:36):
Some people get so scared about those things that they
might ask, should I just cash everything out? Should I
move everything? Should I take everything and do one thing
or the other way? Like it's like all one thing
or another just because of an event or a headline
or something like that.
Speaker 3 (11:51):
Yes, And oftentimes you even see with new investors, why
haven't you invested before? I don't want to lose her, okay,
right right, this concept of losing everything, And I think
fundamentally that is a really a lack of understanding what
investment is. You know, Folks sometimes see investment as just
(12:13):
a quote gamble or they see numbers on a page
that go up and down and don't understand what those
numbers actually represent and what's behind those numbers. And so
it's a scary thought to put your hard earned money
into something that did Ultimately, it's scary because you don't
(12:34):
understand the inner workings of it. And you know, the
concept of stock is you are an owner of a
company when you own a piece of stock whatever company
you own. Now, could a company go out of business, yes,
And if it does, if you invest all of your
(12:55):
money in that one company, could you lose everything? Yes.
So that is I think where that fear is rooted.
You know, people have heard the stories of Enron and
things like that. But when you're an investor in the
market in general, in funds, you don't own one company.
(13:17):
You own hundreds of companies potentially even more than that
across your portfolio. The concept that you'll lose everything is
something that is almost it's an a near impossibility unless
(13:38):
a meteor strikes or something of that nature. Because if
you think about your daily life and all the goods
and services that you claim and consume, all the things
that you do in your daily activity, who makes those
goods and services? Who produces them? Those companies that you own,
we literally would be back to the stone age if
(14:00):
everyone could lose everything.
Speaker 4 (14:02):
We have much bigger problems than a single retirement portfolio.
If everything went to zero.
Speaker 3 (14:08):
Yes, and that just doesn't happen. You know, the market,
even when it is going has gone down for a
period of time, there's still economic activity going on. You know,
the Great Depression, as bad as it was still seventy
some percent of the people had jobs. There was still
economic activity, and there were still companies that were profitable.
(14:30):
And you know, when you look at those times of
greatest fear, those end up being the best opportunities. So
this idea, you know, you I'll still hear it. Sometimes
folks come into the office and talk about two thousand
and eight, and two thousand and eight is the worst
(14:50):
market that you and I have ever experienced firsthand. Yeah,
for sure, market was down about forty percent. Yeah, that
is scary, but the world didn't really grind to a halt.
We still went out and lived our lives and consumed
goods and services, and companies were there to provide them.
So the market goes down, and what does that fear
(15:15):
make you do? It makes you sell. It's just a
reaction that, oh, I'm scared, I need to get out
of this scary situation. And when you do that, what
have you done. You've made your fears become a reality.
You've locked in those games, you've locked in those losses.
(15:38):
You've pulled yourself out at exactly the time that really
you should be buying that, really you should be stepping
into it because it's opportunity. And you don't have to
look very far after two thousand and eight to see
that play out. You can see that play out on
a small scale this year. You know, we were down
twenty close to twenty percent earlier this year, and now
(16:00):
we're up, you know, just almost overnight. You know, that
was a fast dip in recovery. You know, the market
grows in spurts. Sometimes when it catches momentum, it goes
up much faster than you think it should. But that's
how the market works. If you look at history, if
(16:22):
you miss those spurts, you've really missed out on a
lot of return, right, Yeah, because we've seen that happen.
Speaker 4 (16:28):
I have this, I have this, this completely unconfirmed theory,
and it's mine alone, But I do believe that there's
something into because it seems like that people have long
through sort of a vel of ignorance, equated the market
with a risk, the same risk as gambling. You know,
it's just like gambling. The thing is, and part of
the issue I think we have now is because especially
in the last ten years, the prolification of sports gaming
(16:51):
into our everyday culture is people now know more about
gambling than they do about the market. They understand the
gambling more than they understand the market, and so I
think think they equate gambling in the market more than
there's actually no similarities there.
Speaker 3 (17:05):
No, no. I mean a gamble. If you go to
a casino and you gamble or go online and gamble,
there will be a winner and there will be a loser.
Speaker 4 (17:19):
The house doesn't want you to win to whereas in
the market the house is fine with you winning to right.
Speaker 3 (17:24):
So the difference there, it's the same dollar. It just
gets allocated depending on the odds that are set up
basically in the in the transaction and the house, if
enough hands are played, the house has a percentage that
they're going to take just because of the way the
odds work. So you're not growing anything, you're just redistributing
(17:47):
the same dollars in a gambling scenario. Yeah, if we
bet and I win and you lose, we're just trading dollars.
Companies are are not doing that. Company. You're an owner
of a company that's trying to expand their goods and
services to people, trying to become more efficient and more profitable.
(18:09):
Companies grow the dollars they grow the pool of money
that is being distributed. Gambling does not do that. You know,
look at look at a company like Microsoft, or an
article that I just saw a few weeks ago about
the Navidia CEO said that they've made more billionaires than
any company. You know, that doesn't happen unless the pie
(18:33):
is growing. You know, because Microsoft, there was a you
know several years ago the number of millionaires created just
by Microsoft was in the tens of thousands that have
owned Microsoft over the years. You know, that is not gambling, right,
you know. Now, yes, a company can go bad, but
(18:55):
the concept behind it is the it's a growing pool
of resources if those companies are successful. If you're success successful, gambling,
nothing grows, somebody loses. Who's losing with Microsoft? You know, No,
it benefits society. That's why it multiplies and grows. All
(19:18):
of us have our computers on our desk and are
using some of those tools that make us more efficient.
That's why Microsoft has grown the pool and pie that
gets divided up. And that is very different than gambling.
So you're you are correct there. That is a big,
really misunderstanding about how investing works and why it is.
(19:39):
It's a it's a risk investing is a risk, not
a gamble. Now, that's a great man.
Speaker 4 (19:46):
This should be bookmarked and if you're out there, this
is something you can play back for anybody that you
have this argument with, because if if you're like me,
you know people in your life that just that that
absolutely are assertive that there's just no difference. It's it's
just gambling with all your money. And it's so it's
like if you're like you bet black or and roulette
and then you can just leave it on black for
as many spins as you want. I mean, that's not
(20:08):
even a perfect analogy, but it's a lot closer. It's
not like you take your ball and go home. You know,
it's like you have you have active play all the time,
and it's a it's a frustrating thing. And it's got
to be frustrating because people are getting that kind of
baked in.
Speaker 3 (20:19):
And if you and you know, statistically, if you leave
it on black and spend it every time, and you
do it enough times, you will lose. Yeah, exactly right.
There is no chance if you play it long enough
that you will win because it's not set up for
you to win. That is not the case. You know,
(20:40):
everybody in that company, every every employee, everybody in that
company that you own stock in, is playing on the
same team to grow that business to be more valuable
to the customers they serve. You know, that whole team
of people is working together. I mean, that's what the
(21:00):
economy is, you know, And that's why some people have
more capital to and more money because they allocate it well.
You know, these companies have billions and now trillions of
dollars of value because the marketplace has decided, you know,
I'm i'm I'm getting I'm getting on that ship before
(21:22):
it sales. And so these ideas, these these teams of people,
the famous people that you're talking about, why do they
have that much capital because they have proven to do
well with it and that attracts even more capital. Yeah,
that's a whole different thing than gambling.
Speaker 4 (21:41):
It's completely different. Talking a little bit about fear and
the fear of losing everything this morning as as opposed
to risk, and we're traveling down through that nuance a
little bit this morning. You're welcome to give us a
call fee like three zero four, three four five fifty
fifty eight, three four five fifty eight fifty eight. You
can text three z are four non three five five
zero zero eight. Threes are four non three five five
zero zero eight is our number. We do have some
(22:05):
it's a text message or not for us, so we'll
skip this and get it Todave Allen when his show
comes out. Dave Allen's back today, by the way, he'll
be back at nine oh six on The Dave Allen
Show on five eighty Live. Let's gohead and take a
break right now. We have a break we need to take.
It's our only one of the program. When we come
back plenty more we're going to talk about. John sent
me tons of information that we're going to go over
that we can talk about as far as the fear
of losing everything in different scenarios. However, John would love
(22:28):
to help you out. If you have a question about
your retirement and how you can retire right, give us
a call this morning three zero four three four five
fifty eight fifty eight.
Speaker 3 (22:35):
I'm Del Cooper.
Speaker 4 (22:36):
You're listening to Retire Right Radio with John Bredett for
Fourth Avenue Financial on five EIGHTWCHS, the voice of Charleston.
Speaker 5 (22:41):
Retire Right Radio a sponsored by Fourth Avenue Financial, which
is solo responsible for its content. Security is offered through
JW CALL Financial. Member fent Recipic investment advice offered through
JW COL Advisors. Fourth Avenue Financial. Jw CL Financial and
JW COL Advisors are unaffiliated entities. The opinions expressed by
John Burdett should not be construed as specific investment, legal,
or tax advice. All economic and performance information is historical
(23:03):
and not indicative of future results. Investing may involve risk
of loss of principle. Any types advice on this show
is not intended to be used by any person for
the purpose of avoiding US federal or state tax penalties
that may be imposed on such a person. If risk
of loss of principle, any types advice on this show
is not intended to be used by any person for
the purpose of avoiding US federal or state tax pitolties
(23:25):
that may be imposed on such a person, and each
listener should seek advice from their tax advisor or legal
console on topics that arise from the show. John Burdett
is not providing legal or tax advice. Nothing should be
construed as solicitation of an offer to buy securities. This
program is sponsored before that Avenue Financial, which is solely
responsible for its content.
Speaker 6 (23:44):
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and Union districts to revisit homeowners. Plus new instruction in
the county will be assessed. They will be in marked
vehicles and we'll have photo ID and business cards. If
(24:06):
you have any questions about this process, visit their website
at Putnamcoassessor dot com. That's Putnam Cooassessor dot com.
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Speaker 8 (24:44):
This is Retire Right Radio with John Burdett from Fourth
Avenue Financial taking your calls at three O four three
four five fifty eight fifty eight or texts on three
oh four nine three five fifty oh eight.
Speaker 4 (25:11):
That'll get excited to go in the morning. Sorry, yeah, yeah,
ready to go on a Monday morning. You're listening to
retire Right Radio right here on the Voice of Charles
and five ADWCCHS. Hope you made it through the weekend. Okay,
it was a nice weekend for the most part around
the Canall Valley. A little bit of rain on what
was it yesterday early in the afternoon, but came through it.
Speaker 3 (25:28):
Okay.
Speaker 4 (25:29):
If you listen to CINCINNTI reads baseball. This past weekend,
Red's had a rough time against the Milwaukee Brewers.
Speaker 3 (25:36):
Played the Brewers well, but.
Speaker 4 (25:37):
Then just some defensive misques and some late game anti
heroics ruined the Reds on Friday and Saturday. Came back
for a x ning win yesterday. So the Reds are
back at it tonight on five ADWCHS. And this is
one of my favorite things to happen. It happens a
few times during the baseball season. It's a West coast trip,
which means that I can turn baseball on at like
(25:58):
ten o'clock at night much and watch the Reds play.
And I kind of like that. You can do things
early in the morning, in the evening get it ready
to go. Right when it's time to go to bed,
you turn onto some West Coast Baseball and see the
Reds play the Angels. Though Reds have had their Angels
number in the last few years. I think they've won
the last eighth straight against the Angels. Reds are looking
to make some movement into the wildcard area and so
they're going to play the Angels to start the season
(26:20):
before visiting the Diamondbacks and then the Dodgers. So not
necessarily an easy road trip for the Reds, but none
of those teams are playing that great right now, so
they have an opportunity.
Speaker 3 (26:29):
No, you know, I don't. I don't follow the Angels
that much, but I always look at the box scores
and see who's doing what, and well, Mike Trout is
really having some struggles, isn't it. Yeah.
Speaker 4 (26:39):
I mean he's been hurt so much in his career
and it's really crazy when you look at the Angels.
They had peak years from both Shoheo Taani and Mike Trout,
before Trout really started going through some and they couldn't
win anything.
Speaker 3 (26:53):
Man.
Speaker 4 (26:53):
They had two of the greatest players of this generation
on the same team, and man, they couldn't win anything
at all. It is a team's or Yeah, that's for
sure right now. And I like Mike Trout a lot.
It's kind of it kind of hurts me. I'm not
really an Angels fan, but I think he's I think
he's a good dude and has been a great player,
and it kind of hurts me to see somebody like
him struggling just so badly now. It reminds me like
(27:14):
King Griffire Junior in some ways King Griffy Junior, just
injuries powered up on top of him, can never really
end his career the way that you would have liked
to see a guy go out. And that's kind of
the way I feel about Harper, or not Harper, about
Trout a little bit. Yeah, but we're not talking about
not really talking about it. We talked about baseball during
the they're in a break.
Speaker 3 (27:31):
Just sort talking about striking out. Yeah, yeah, yeah, right, exactly,
that's right.
Speaker 4 (27:34):
We're talking about the fear of striking out in your
investments and how can you be Tony Gwinn and never
strike out. That's or at least minimize those strikeouts. And
you can help out with that. This morning, you can
give us a call three zero four three four five
fifty eight fifty eight three zero four three four five
fifty eight fifty.
Speaker 3 (27:48):
We've talked a lot.
Speaker 4 (27:48):
This morning about what it actually means when there's a
correction in the market. Even the worst case scenario, which
for most of us listening to this program was the
two thousand and eight stock market.
Speaker 3 (27:58):
What would we call it? I think we called it
a recession, or it really was more of a it
was more of a financial panic. I mean it went
beyond just what what are the earnings of the companies,
but people were even concerned about the actual foundations of
the of the economy. So like I say, when you
look at things, how bad can things get? You know?
(28:21):
That was that was by far the worst weed experience.
Speaker 4 (28:24):
That's when there was the whole That's when people were
like protesting Colt the numbers with what CEOs have been
paid in the regular people. I mean I get where
people are like, man, the CEO pay sir accelerated faster
than the leaves, but they're the ones that makes the money,
you know, I mean, I don't.
Speaker 3 (28:37):
Know what you can do.
Speaker 4 (28:38):
A lot of that is tied to stock right, right,
which means that market's done well, right.
Speaker 3 (28:43):
Which means the market's done well, which means the stock
owners have done well. And you know, if you if
you don't like the concept of of you know, those
folks making all the money, then participate because you can too. Yeah.
Speaker 4 (28:58):
And it's really odd when you look at what I forgot,
what was called for the longest time, Occupy Wall Street, right,
so it was Occupy Wall Street. It was really strange
when the sort of the nebulous complaints about that movement.
I think, like in baseline, you know, just make people
aware of, hey, there's some structure and in equity or whatever. Okay,
but I mean, what are you really protesting there? Like
(29:20):
people in finance? You know, where's the evil there? I
don't understand what that whole thing was against. And what's
really funny now is there some people that were prominent
in that movement that are like like startlingly on the other.
Speaker 3 (29:32):
Side of it.
Speaker 4 (29:32):
Just now you know, they're like famously not to the
Occupy Wall Street kind of people. Now they kind of
came came full circle. It's kind of strange to see
some of that.
Speaker 3 (29:41):
Well, you know, for somebody to be successful, generally they
have to be valuable to other people. And you know,
you can argue that maybe we're valuing them too much,
but you have to do something productive that people want
and design. You have to meet somebody's needs to be successful.
(30:04):
And as we said before, you know, at some point
wealth that gets aggregated like that, it's not about how
you live. I mean, after a certain point of money,
you can pretty much do the things you want to do.
And that number is it's probably way less than the
(30:24):
billions of dollars. That is certainly way less than the
billions of dollars some people have. So really, what that
money is is nothing more. Then I get to allocate
it for society. Yeah, right to a degree. I mean, yes,
I'm allocating it for myself, but ultimately, if I grow
(30:45):
that capital, it's because I'm being more efficient with it
in society. The benefits society. It can't not benefit society
if it's if it's used properly and if it grows
that that's the society is basically saying you're doing the
right things. With money, right. I mean, that's when you
(31:06):
really break it down, that's that's what's happening there. So
it's hard to be really angry at that process because
that's what's given really all of us, not just in
the United States but even globally now the opportunity to
live the way we live. Yeah, I think we have
the goods and services that we have that didn't even
(31:27):
exist ten, twenty, thirty, forty years ago.
Speaker 4 (31:29):
That is, that seems such like a sage council. And
my impression sort of on the looking back when all
of that is that I think people complain about the
actions of certain people within the space, but the space
itself is what it is. I mean, you can't cast
a villainous nature on like quote unquote market. I mean
there's you can find any number of characters within the market,
(31:51):
just like you can't anywhere in sports or anything else.
You have characters that do all kinds of things, and
that was just kind of an antle thing.
Speaker 3 (31:58):
You know, the media content. Yeah, right, and you know
that's just their stick, I guess. But like Elon Musk,
you know you can say, well, he shouldn't be doing
these things, he should be doing these things but the
one thing you can say is he thinks about big
things and tries to solve them or tries to make
(32:18):
them more efficient.
Speaker 4 (32:19):
Yeah, whatever you think about his foray into politics, and
I don't necessarily love it, but he really is closer
to modern day Howard Hughes than anybody else that we
really have.
Speaker 3 (32:28):
And some of his ideas may flame out and crash
and burn, but that is also the process of achieving things.
I mean, most of the people that are successful have
failed along the way.
Speaker 4 (32:40):
Yeah, yeah, that's very true. And going back to Howard
Hughes for a second, we already know how kind of
strange of an individual he. Imagine how strange we would
have considered him if we had social media about it, right,
you know, I mean imagine if he was like front
and center of everything and you could access his personal
thoughts and he could go and tweet at you directly
and things like that.
Speaker 3 (32:58):
You know.
Speaker 4 (32:59):
I mean, it's hard to tell what we would have
thought of the guy. It's just kind of interesting how
those things come full circle. But before we get out
of here, we talk about this all the time, and
this is the bread and butter of what you do.
But I have seen this in myself. When we talk
about the fear of the marketing different things like that,
people tend to think about a stock or something happening.
And I've been in a situation We've talked about this
before where I know some people in my life that
(33:20):
have been overly obsessed with looking at one particular stock
and they had a significant amount of money in that
at one point in time and didn't really do much
to diversify out of it because it was like a
gift from family or whatever, so they thought like it
was the right thing to do to not change it
or whatever. But looking at how and there was a
few people in that family that look at it the
(33:40):
same way, looking at how they have to evaluate that
and they're literally they're up and down, up and down,
up and down, because for them it's not a broader
role of the market. It is specifically one stock and
it's a considerable amount of money in there. Diversification fixes
that to a Largetification is how you fix that.
Speaker 3 (33:58):
I mean, look at the economy and the progress that
it makes and the quality of our life that that
has risen over time. The process works, but it doesn't
work always for individual companies within that sometimes innovation will
completely destroy a successful company. I mean, look at Sears Sears.
(34:22):
I mean they've built the tallest building in the world
at one point, and now they've disappeared because of innovation.
You know, Amazon and all these other other players came
in and and they innovated and and and Sears did not.
They made some bad decisions. And that has a great way.
I'd already thought of it like that. They did have
the biggest building, I mean that they were everywhere, right, Sorry,
(34:46):
but that just kind of struck me. That's true. And
now it's gone. Now it's gone, and and it happened,
you know, And so people look at that and say,
look at you know that, But that is that's creative destruction.
The people voted with their and how they spend their
money and said, hey, these people have a better way
and it's a better experience for me, or I can
(35:08):
get things cheaper this way, and elected to put their
business elsewhere. So when you hang on to one company,
you run the risk of that creative destruction that happens
in the economy that you're hanging on to the thing
that gets destroyed. And what a great way to put it,
What a great explanation. Yeah, but the market as a
(35:28):
whole is still working and people are actually growing and
making more money because they're using goods and services more efficiently.
Speaker 4 (35:36):
Although Blockbuster Video was destroyed and cannibalized and really doesn't
exist anymore, look at all of the other movie services
that are out there that have arisen.
Speaker 3 (35:44):
From those as streaming everything. But you know it, Blockbuster
made a whole lot of sense at the time, but
they didn't innovate, they didn't continue they and somebody came
and did something that the people, not the companies, street
the people elected by using those goods and services. They
(36:05):
pick the winner. And so what happens all the capital
rushes in uh and aggregates around that to fund that idea.
Speaker 4 (36:13):
That's that's a great way to put and and when
you think about also how companies always find find a way.
I mean, I think of like the music industry. The
music industry, the people won for a short amount of
time in the music industry, like after Napster and all
that stuff, and the record labels realized, hey, we need
to make our music more accessible and make it available
for people. That was great for a very short amount
of time, until suddenly you don't own your music anymore, right,
(36:36):
you know. Now suddenly it's like they made all this
music available for you, but you have to subscribe to
listen to your own music every month. Now they're making
money hand over fist doing that. Hey, that's great, that's
our company if they're doing their thing. But you know,
they find a way. You know, they didn't just throw
up their hands and be like, well everybody's pirting music
now and they and they're going to go and get
their own music. They found a way to make music
when the other make money on the other side of that.
Speaker 3 (36:56):
As you said, they're pirating music. It's basically and see
that's another reason that a country like the United States
and our economy works so well because we do have
property rights. Yeah, you know, there's intellectual property rights that
we have and and and can defend unlike some people
across the pond. That's a good point. That's a good point.
Speaker 4 (37:19):
It's John Berdbt with Fourth Avenue Financial. More information online.
It's fourth Avenue Financial dot com. Fourth Avenue Financial dot Com.
You can find the information there. You can also go
to the You can also go to the website fourth
after Infinnesasional dot com the Facebook address good thing, thank
you yeah. Fourth Avenue also go to the You can
(37:39):
also go to the website fourth AFNU Interfessional dot com
the Facebook address good thing, thank you yeah. Fourth Avenue
Financial on Facebook as well. You can just find the
page and like it. Phone numbers three zero, fourth seven
four six seven Noine seven seven seven four six seven
Noine seven seven John. We'll see you next week, all right,
take care, have a great dy everyone on five ADWHS
The Voice of.
Speaker 3 (37:57):
Charleston m h.
Speaker 2 (38:01):
W C h S A N W two four three
d r f N Charleston W two and three a
Q Cross.
Speaker 3 (38:06):
Lanes at w v RC Media Station.
Speaker 2 (38:10):
We're proud to live here too,
Unlock your dream property with Meeks Realty Group, where Rich
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Contact us at Meeks dot us.
Speaker 2 (00:15):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five eight WCCHS
its employees or WVRC Media. This is retire Right Radio,
a weekly show from John Verdet at Fourth Avenue Financial
that aims to answer your questions about financial planning, investing,
and how to retire right. Fourth Avenue Financial is located
(00:38):
in downtown Charleston at one seventy Court Street. More information
online at Fourth Avenue Financial dot com. Join the conversation
by calling three oh four three four five fifty eight
fifty eight or text three oh four nine three five
fifty oh eight. On Retire Right Radio, let's go live
to the studio with host Dale Cooper and John Burdett
(00:59):
from to have any financial.
Speaker 3 (01:02):
And very pleasant Good morning to you.
Speaker 4 (01:03):
Thanks for tuning in to retire Right Radio and this
Monday morning in the month of August. It is the
eighteenth day in the month of August. I can't believe
we're almost on September. Kids are out all about at school. Yeah,
traffic was terrible this morning. A new traffic pattern this morning.
Did you notice everybody over in the left lane for
some reason in front of the school on Leo.
Speaker 3 (01:24):
Sullivan Way.
Speaker 4 (01:24):
Usually there's a lot of traffic there, but I think
the little the little littles were being dropped off at
the at the drop off past Virginia Street, and everybody
was just parked in the let like just waiting in
the left lane. So you get off the highway and
there's just like you have to like circle around everyone
to make a left hand lane on Virginia Street.
Speaker 3 (01:45):
I did not notice that. But the school is in it.
Speaker 4 (01:47):
It is, and I missed my I know what the
window is. When school's in, I need to get here earlier.
And usually I get here early anyway, so that's not
much of a problem. This morning, of course, it's a Monday,
and I got kind of delayed at the house and
stuff like that, and then I drove to work right
in the middle of everything.
Speaker 3 (02:01):
The school near me starts so early that I don't
have to worry now, that's nice. That's always nice. You
can put on to work for you this morning.
Speaker 4 (02:09):
If you need some help on how you can retire
right you have questions about your retirement health, you can
give us a call this morning. Three zero four three
four five fifty eight fifty eight three four five fifty
fifty eighth our number. You can text three zero four
non three five five zero zero eight threes are four
nine three five five zeros er eight. We're going to
talk a little bit about well, we talked a little
bit last week about risk, and this week we're going
to kind of pay that off a little bit and
(02:30):
talk about we're going to flip a risk over until
just straight fear. You know, I'm scared of losing everything.
Why don't I just have my cash and a mattress
in my spare bedroom and that's safe.
Speaker 3 (02:40):
Eh.
Speaker 4 (02:41):
You know, we're going to talk about that a little bit.
Things may not be quite as scary as what you
think it is, even when things look pretty bleak.
Speaker 3 (02:47):
But first of all, let's do.
Speaker 4 (02:48):
Kind of a rewind and take a look at some
of the action on the stock market last week, kind
of where the indicators are and stuff like that.
Speaker 3 (02:56):
Kind of an interesting week.
Speaker 4 (02:57):
Honestly, last week week started off kind of uh on
a part, the market did well.
Speaker 3 (03:01):
I think last week the market so the market was good.
Speaker 4 (03:04):
So so the bottom line was the market was fine,
but it was doing some battle with some competing indicators
as far as inflation and prices of things and stuff
like that goes.
Speaker 3 (03:12):
Yes, I mean, the first numbers came in great, everybody thought, hey,
the Fed's going to cut aggressively. You started hearing people
talking about even more than quarter point, right, you know,
half point and beyond two more this year or three
more maybe right. And then and then by midweek a
couple of other indicators were out that kind of showed
that well maybe not. And uh so we're back in
(03:36):
the wondering what the Fed is going to do. Still
the consensus and the market is pricing in a rate
cut uh here here shortly but uh but we'll see
what happens. You know, we've been talking for the last
year about all the rate cuts that we're going to
have and then we really haven't seen much of that.
So you know, of course that is also a good
(03:56):
sign that the economy hasn't hasn't crumbled you know, the
economy and the numbers are are still pretty good. The
labor market appears to be slowing down, but it's still growing.
It's not like we're shrinking, you know, the number of
jobs in the country. But but the rate of growth
is slowing, which which would argue for rate cuts. But
(04:18):
but we'll see what the the wisdom of the Fed
has here in the next month.
Speaker 4 (04:23):
It's crazy. It's crazy to watch this as it unfolds.
But again, when you try to analyze things on like
a micro level, when you're talking about something that's such
that that impact is on such a micro level, it's
it's sort of hard to understand what those numbers might
mean in the long term.
Speaker 3 (04:36):
I mean, all these things usually not play in hell,
and even a rate cut that happens, it really doesn't
filter through the economy for for you know, a good
number of months. So it's not like it's flipping a
switch and everything is great because the the rates are lower.
Remember as rates go down that it benefits some people
and it hurts some people, you know, those that are
living on interest bearing securities things like that that could
(04:59):
that could actually impact their income. Where a young person
buying a house might favor that. So, you know, even
rate cuts or rate increases, they don't cut across the
board evenly. There are winners and losers to everything that
happens in the economy.
Speaker 4 (05:17):
When if someone is out there looking for, you know,
to refine answer to buy a house or something along
those lines, and they hear about a potential you know,
quote unquote rate cuts that are coming, you know, like
with gas, for example, when the price of oil drops,
the price of gas does not drop.
Speaker 3 (05:33):
When the price of oil goes up, the price of
gas does go up. You know.
Speaker 4 (05:36):
It's it's it's an interesting the way that game plays
when it comes to interest rates in the mortgage market anyway,
generally speaking, that cut is reflected fairly consistently. Like if
there's a cut to the that the FED makes, that
is reflected to some degree in the in the downstream rate.
Speaker 3 (05:51):
Generally, when the FED is cutting rates, it's really cutting
the short you know, the shortest end of the of
the of the yield curve. So it's like the top
for the lever or the bottom of the level, I guess.
And then yeah, so and there again, I'm no mortgage expert,
but mortgage rates tend to track. The movement really more
of the ten year it seems, I think, because that's
(06:14):
about the average mortgage length something like that. You know,
you might have fifteen and thirty year mortgage, but people
move and pay off and that sort of thing. So
so you know, when lenders are lending, they're looking more
at that ten year rate. I believe to set that
and so that doesn't move in lockstep with what the
FED does. It usually moves in the general direction, so
(06:41):
it will have an impact. I had that question yesterday
from somebody that I know about buying a car. You know,
should I wait to buy a car if interest rates
are down? And it's like, well, it depends. You know,
how much are you going to finance, how long are
you going to finance it for? And if rates are
less in the future, does that overcome maybe a good
(07:02):
deal that you get today, Because the interest sometimes of
extra percent on a car or something like that doesn't
sometimes amount to as much as it might on a
home that's financed over a longer period of time. So
you know, it'll impact things differently and in people's decisions
a little differently. And like I say, it doesn't cut
evenly across the board. The good thing with the market
(07:24):
outside of the interest rate story is the earning story.
You know, we have the hope of lower interest rates
that we think we're going to get, which usually is
good for the stock market, but we also have growing earnings.
Earnings keep surprising to the upside, and that also has
(07:45):
been really the catalyst for the market moving forward over time.
The market valuations follower earnings, and as long as those
corporate earnings are coming in good, you know, that really
puts a backdrop of backstop under the under the under
the market.
Speaker 4 (08:00):
I have a theory, although there has to be you know,
media surrounding financial news and the different industries and things
like that, there obviously has to be coverage of those
sorts of things. It's it's of the public interest to
cover those things. But I think that people tend to like,
I don't know that it's great that people know that
and things like that. There obviously has to be coverage
of those sorts of things. It's it's of the public
interest to cover those things. But I think that people
(08:23):
tend to like, I don't know that it's great that
people know the names of the CEOs of these companies
and the guys that like that they've become sort of
like cult figures, regardless of wood is whether you know
people automatically think of Elon Musk. But also, I mean
you have Sam Altman from open Ai and things like,
I mean, people that comment on absolute everything anymore and frankly,
other than their business. I don't know why we care
(08:44):
all that much, and and I think that we play
too much into that. Like Sam Altman said this about
who cares what he said about healthcare. That's not just
you know, it's like sometimes I think we give these
guys too much headline juice just because they're they're rich.
When Sam Altman couldn't tell me anything about my wife
other than if I pay for for open Ai or not.
Speaker 3 (09:04):
Oh yeah, yeah, Oh well, I don't know. There's something
about people in the public eye. It's like the uh,
you know, the Hollywood folks making comments on politics or
this that or the other. I mean people just exactly
you know, you're famous, and you know why are those
cus fameous? Well, I mean they run big companies and
they are the innovative companies, and uh, you know, people
(09:28):
look at them like they've got some special sauce. But
you know, they they they're wrong, and just like everybody
else's sometimes.
Speaker 4 (09:39):
We sometimes, I think, substitute their company with them. And
and for all the problems that some people feel that
Elon Musk has had with public facing, I mean, Tesla's
a separate entity than than the man himself, and so
you can't really you shouldn't really confuse those things when
you're trying to make investment decisions or anything else. I mean,
I guess you could. I mean, if you don't I
(10:00):
want to invest in something because you have a personal
problem with I mean, that's one thing, But don't let
the headlines and all the different things mess you up
too much when it comes to that.
Speaker 3 (10:07):
Yeah, I mean, you need to stay focused on what
your goals are. You need to, you know, focus in
on your time horizon and make your investment decisions based
off of your needs, not from a statement, whether it's
a CEO, a famous person or even a politician. Yeah,
you know, what is what is the important thing for
(10:27):
me in my life? And how do I structure my
finances around that?
Speaker 4 (10:31):
And you can you can find that out. You can
have your situation evaluated and come up with what's best
for you, not by searching around online or finding what
your favorite celebrity's opinion is or your favorite billionaire's opinion is.
But John's opinion is going to help you out a
lot on those and you want to put the experts
on your side, you can call us this morning. You
can start right now by calling three zero A fourth
three four five fifty eight fifty eight three four five
fifty eight fifty eight. You can also find out more
(10:52):
information online about Fourth Avenue Financial. You can go to
the website Fourth Avenue Financial dot com where you spell
out the whole thing Fourth Avenue Financially. You can find
all kinds of information there, sign up for newsletter. You
can also like the page on Facebook. You do that
same search and like the page over there. A couple
things we're going to talk about this morning, and again
you're welcome to give us a call with anything that
you want to ask questions about how and how you
can retire right about your specific situation. But we're going
(11:13):
to talk a little bit about the other end of
talking about risk. We talked about risk a little bit
over the last couple weeks when Logan was in here
and last week with John and I. But this week
we're going to pay that off with risk turning into fear.
Some people can get so paralyzed by either movement in
the market, headlines, change of presidential administry, whatever it might be.
(11:36):
Some people get so scared about those things that they
might ask, should I just cash everything out? Should I
move everything? Should I take everything and do one thing
or the other way? Like it's like all one thing
or another just because of an event or a headline
or something like that.
Speaker 3 (11:51):
Yes, And oftentimes you even see with new investors, why
haven't you invested before? I don't want to lose her, okay,
right right, this concept of losing everything, And I think
fundamentally that is a really a lack of understanding what
investment is. You know, Folks sometimes see investment as just
(12:13):
a quote gamble or they see numbers on a page
that go up and down and don't understand what those
numbers actually represent and what's behind those numbers. And so
it's a scary thought to put your hard earned money
into something that did Ultimately, it's scary because you don't
(12:34):
understand the inner workings of it. And you know, the
concept of stock is you are an owner of a
company when you own a piece of stock whatever company
you own. Now, could a company go out of business, yes,
And if it does, if you invest all of your
(12:55):
money in that one company, could you lose everything? Yes.
So that is I think where that fear is rooted.
You know, people have heard the stories of Enron and
things like that. But when you're an investor in the
market in general, in funds, you don't own one company.
(13:17):
You own hundreds of companies potentially even more than that
across your portfolio. The concept that you'll lose everything is
something that is almost it's an a near impossibility unless
(13:38):
a meteor strikes or something of that nature. Because if
you think about your daily life and all the goods
and services that you claim and consume, all the things
that you do in your daily activity, who makes those
goods and services? Who produces them? Those companies that you own,
we literally would be back to the stone age if
(14:00):
everyone could lose everything.
Speaker 4 (14:02):
We have much bigger problems than a single retirement portfolio.
If everything went to zero.
Speaker 3 (14:08):
Yes, and that just doesn't happen. You know, the market,
even when it is going has gone down for a
period of time, there's still economic activity going on. You know,
the Great Depression, as bad as it was still seventy
some percent of the people had jobs. There was still
economic activity, and there were still companies that were profitable.
(14:30):
And you know, when you look at those times of
greatest fear, those end up being the best opportunities. So
this idea, you know, you I'll still hear it. Sometimes
folks come into the office and talk about two thousand
and eight, and two thousand and eight is the worst
(14:50):
market that you and I have ever experienced firsthand. Yeah,
for sure, market was down about forty percent. Yeah, that
is scary, but the world didn't really grind to a halt.
We still went out and lived our lives and consumed
goods and services, and companies were there to provide them.
So the market goes down, and what does that fear
(15:15):
make you do? It makes you sell. It's just a
reaction that, oh, I'm scared, I need to get out
of this scary situation. And when you do that, what
have you done. You've made your fears become a reality.
You've locked in those games, you've locked in those losses.
(15:38):
You've pulled yourself out at exactly the time that really
you should be buying that, really you should be stepping
into it because it's opportunity. And you don't have to
look very far after two thousand and eight to see
that play out. You can see that play out on
a small scale this year. You know, we were down
twenty close to twenty percent earlier this year, and now
(16:00):
we're up, you know, just almost overnight. You know, that
was a fast dip in recovery. You know, the market
grows in spurts. Sometimes when it catches momentum, it goes
up much faster than you think it should. But that's
how the market works. If you look at history, if
(16:22):
you miss those spurts, you've really missed out on a
lot of return, right, Yeah, because we've seen that happen.
Speaker 4 (16:28):
I have this, I have this, this completely unconfirmed theory,
and it's mine alone, But I do believe that there's
something into because it seems like that people have long
through sort of a vel of ignorance, equated the market
with a risk, the same risk as gambling. You know,
it's just like gambling. The thing is, and part of
the issue I think we have now is because especially
in the last ten years, the prolification of sports gaming
(16:51):
into our everyday culture is people now know more about
gambling than they do about the market. They understand the
gambling more than they understand the market, and so I
think think they equate gambling in the market more than
there's actually no similarities there.
Speaker 3 (17:05):
No, no. I mean a gamble. If you go to
a casino and you gamble or go online and gamble,
there will be a winner and there will be a loser.
Speaker 4 (17:19):
The house doesn't want you to win to whereas in
the market the house is fine with you winning to right.
Speaker 3 (17:24):
So the difference there, it's the same dollar. It just
gets allocated depending on the odds that are set up
basically in the in the transaction and the house, if
enough hands are played, the house has a percentage that
they're going to take just because of the way the
odds work. So you're not growing anything, you're just redistributing
(17:47):
the same dollars in a gambling scenario. Yeah, if we
bet and I win and you lose, we're just trading dollars.
Companies are are not doing that. Company. You're an owner
of a company that's trying to expand their goods and
services to people, trying to become more efficient and more profitable.
(18:09):
Companies grow the dollars they grow the pool of money
that is being distributed. Gambling does not do that. You know,
look at look at a company like Microsoft, or an
article that I just saw a few weeks ago about
the Navidia CEO said that they've made more billionaires than
any company. You know, that doesn't happen unless the pie
(18:33):
is growing. You know, because Microsoft, there was a you
know several years ago the number of millionaires created just
by Microsoft was in the tens of thousands that have
owned Microsoft over the years. You know, that is not gambling, right,
you know. Now, yes, a company can go bad, but
(18:55):
the concept behind it is the it's a growing pool
of resources if those companies are successful. If you're success successful, gambling,
nothing grows, somebody loses. Who's losing with Microsoft? You know, No,
it benefits society. That's why it multiplies and grows. All
(19:18):
of us have our computers on our desk and are
using some of those tools that make us more efficient.
That's why Microsoft has grown the pool and pie that
gets divided up. And that is very different than gambling.
So you're you are correct there. That is a big,
really misunderstanding about how investing works and why it is.
(19:39):
It's a it's a risk investing is a risk, not
a gamble. Now, that's a great man.
Speaker 4 (19:46):
This should be bookmarked and if you're out there, this
is something you can play back for anybody that you
have this argument with, because if if you're like me,
you know people in your life that just that that
absolutely are assertive that there's just no difference. It's it's
just gambling with all your money. And it's so it's
like if you're like you bet black or and roulette
and then you can just leave it on black for
as many spins as you want. I mean, that's not
(20:08):
even a perfect analogy, but it's a lot closer. It's
not like you take your ball and go home. You know,
it's like you have you have active play all the time,
and it's a it's a frustrating thing. And it's got
to be frustrating because people are getting that kind of
baked in.
Speaker 3 (20:19):
And if you and you know, statistically, if you leave
it on black and spend it every time, and you
do it enough times, you will lose. Yeah, exactly right.
There is no chance if you play it long enough
that you will win because it's not set up for
you to win. That is not the case. You know,
(20:40):
everybody in that company, every every employee, everybody in that
company that you own stock in, is playing on the
same team to grow that business to be more valuable
to the customers they serve. You know, that whole team
of people is working together. I mean, that's what the
(21:00):
economy is, you know, And that's why some people have
more capital to and more money because they allocate it well.
You know, these companies have billions and now trillions of
dollars of value because the marketplace has decided, you know,
I'm i'm I'm getting I'm getting on that ship before
(21:22):
it sales. And so these ideas, these these teams of people,
the famous people that you're talking about, why do they
have that much capital because they have proven to do
well with it and that attracts even more capital. Yeah,
that's a whole different thing than gambling.
Speaker 4 (21:41):
It's completely different. Talking a little bit about fear and
the fear of losing everything this morning as as opposed
to risk, and we're traveling down through that nuance a
little bit this morning. You're welcome to give us a
call fee like three zero four, three four five fifty
fifty eight, three four five fifty eight fifty eight. You
can text three z are four non three five five
zero zero eight. Threes are four non three five five
zero zero eight is our number. We do have some
(22:05):
it's a text message or not for us, so we'll
skip this and get it Todave Allen when his show
comes out. Dave Allen's back today, by the way, he'll
be back at nine oh six on The Dave Allen
Show on five eighty Live. Let's gohead and take a
break right now. We have a break we need to take.
It's our only one of the program. When we come
back plenty more we're going to talk about. John sent
me tons of information that we're going to go over
that we can talk about as far as the fear
of losing everything in different scenarios. However, John would love
(22:28):
to help you out. If you have a question about
your retirement and how you can retire right, give us
a call this morning three zero four three four five
fifty eight fifty eight.
Speaker 3 (22:35):
I'm Del Cooper.
Speaker 4 (22:36):
You're listening to Retire Right Radio with John Bredett for
Fourth Avenue Financial on five EIGHTWCHS, the voice of Charleston.
Speaker 5 (22:41):
Retire Right Radio a sponsored by Fourth Avenue Financial, which
is solo responsible for its content. Security is offered through
JW CALL Financial. Member fent Recipic investment advice offered through
JW COL Advisors. Fourth Avenue Financial. Jw CL Financial and
JW COL Advisors are unaffiliated entities. The opinions expressed by
John Burdett should not be construed as specific investment, legal,
or tax advice. All economic and performance information is historical
(23:03):
and not indicative of future results. Investing may involve risk
of loss of principle. Any types advice on this show
is not intended to be used by any person for
the purpose of avoiding US federal or state tax penalties
that may be imposed on such a person. If risk
of loss of principle, any types advice on this show
is not intended to be used by any person for
the purpose of avoiding US federal or state tax pitolties
(23:25):
that may be imposed on such a person, and each
listener should seek advice from their tax advisor or legal
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is not providing legal or tax advice. Nothing should be
construed as solicitation of an offer to buy securities. This
program is sponsored before that Avenue Financial, which is solely
responsible for its content.
Speaker 6 (23:44):
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(24:06):
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Speaker 8 (24:44):
This is Retire Right Radio with John Burdett from Fourth
Avenue Financial taking your calls at three O four three
four five fifty eight fifty eight or texts on three
oh four nine three five fifty oh eight.
Speaker 4 (25:11):
That'll get excited to go in the morning. Sorry, yeah, yeah,
ready to go on a Monday morning. You're listening to
retire Right Radio right here on the Voice of Charles
and five ADWCCHS. Hope you made it through the weekend. Okay,
it was a nice weekend for the most part around
the Canall Valley. A little bit of rain on what
was it yesterday early in the afternoon, but came through it.
Speaker 3 (25:28):
Okay.
Speaker 4 (25:29):
If you listen to CINCINNTI reads baseball. This past weekend,
Red's had a rough time against the Milwaukee Brewers.
Speaker 3 (25:36):
Played the Brewers well, but.
Speaker 4 (25:37):
Then just some defensive misques and some late game anti
heroics ruined the Reds on Friday and Saturday. Came back
for a x ning win yesterday. So the Reds are
back at it tonight on five ADWCHS. And this is
one of my favorite things to happen. It happens a
few times during the baseball season. It's a West coast trip,
which means that I can turn baseball on at like
(25:58):
ten o'clock at night much and watch the Reds play.
And I kind of like that. You can do things
early in the morning, in the evening get it ready
to go. Right when it's time to go to bed,
you turn onto some West Coast Baseball and see the
Reds play the Angels. Though Reds have had their Angels
number in the last few years. I think they've won
the last eighth straight against the Angels. Reds are looking
to make some movement into the wildcard area and so
they're going to play the Angels to start the season
(26:20):
before visiting the Diamondbacks and then the Dodgers. So not
necessarily an easy road trip for the Reds, but none
of those teams are playing that great right now, so
they have an opportunity.
Speaker 3 (26:29):
No, you know, I don't. I don't follow the Angels
that much, but I always look at the box scores
and see who's doing what, and well, Mike Trout is
really having some struggles, isn't it. Yeah.
Speaker 4 (26:39):
I mean he's been hurt so much in his career
and it's really crazy when you look at the Angels.
They had peak years from both Shoheo Taani and Mike Trout,
before Trout really started going through some and they couldn't
win anything.
Speaker 3 (26:53):
Man.
Speaker 4 (26:53):
They had two of the greatest players of this generation
on the same team, and man, they couldn't win anything
at all. It is a team's or Yeah, that's for
sure right now. And I like Mike Trout a lot.
It's kind of it kind of hurts me. I'm not
really an Angels fan, but I think he's I think
he's a good dude and has been a great player,
and it kind of hurts me to see somebody like
him struggling just so badly now. It reminds me like
(27:14):
King Griffire Junior in some ways King Griffy Junior, just
injuries powered up on top of him, can never really
end his career the way that you would have liked
to see a guy go out. And that's kind of
the way I feel about Harper, or not Harper, about
Trout a little bit. Yeah, but we're not talking about
not really talking about it. We talked about baseball during
the they're in a break.
Speaker 3 (27:31):
Just sort talking about striking out. Yeah, yeah, yeah, right, exactly,
that's right.
Speaker 4 (27:34):
We're talking about the fear of striking out in your
investments and how can you be Tony Gwinn and never
strike out. That's or at least minimize those strikeouts. And
you can help out with that. This morning, you can
give us a call three zero four three four five
fifty eight fifty eight three zero four three four five
fifty eight fifty.
Speaker 3 (27:48):
We've talked a lot.
Speaker 4 (27:48):
This morning about what it actually means when there's a
correction in the market. Even the worst case scenario, which
for most of us listening to this program was the
two thousand and eight stock market.
Speaker 3 (27:58):
What would we call it? I think we called it
a recession, or it really was more of a it
was more of a financial panic. I mean it went
beyond just what what are the earnings of the companies,
but people were even concerned about the actual foundations of
the of the economy. So like I say, when you
look at things, how bad can things get? You know?
(28:21):
That was that was by far the worst weed experience.
Speaker 4 (28:24):
That's when there was the whole That's when people were
like protesting Colt the numbers with what CEOs have been
paid in the regular people. I mean I get where
people are like, man, the CEO pay sir accelerated faster
than the leaves, but they're the ones that makes the money,
you know, I mean, I don't.
Speaker 3 (28:37):
Know what you can do.
Speaker 4 (28:38):
A lot of that is tied to stock right, right,
which means that market's done well, right.
Speaker 3 (28:43):
Which means the market's done well, which means the stock
owners have done well. And you know, if you if
you don't like the concept of of you know, those
folks making all the money, then participate because you can too. Yeah.
Speaker 4 (28:58):
And it's really odd when you look at what I forgot,
what was called for the longest time, Occupy Wall Street, right,
so it was Occupy Wall Street. It was really strange
when the sort of the nebulous complaints about that movement.
I think, like in baseline, you know, just make people
aware of, hey, there's some structure and in equity or whatever. Okay,
but I mean, what are you really protesting there? Like
(29:20):
people in finance? You know, where's the evil there? I
don't understand what that whole thing was against. And what's
really funny now is there some people that were prominent
in that movement that are like like startlingly on the other.
Speaker 3 (29:32):
Side of it.
Speaker 4 (29:32):
Just now you know, they're like famously not to the
Occupy Wall Street kind of people. Now they kind of
came came full circle. It's kind of strange to see
some of that.
Speaker 3 (29:41):
Well, you know, for somebody to be successful, generally they
have to be valuable to other people. And you know,
you can argue that maybe we're valuing them too much,
but you have to do something productive that people want
and design. You have to meet somebody's needs to be successful.
(30:04):
And as we said before, you know, at some point
wealth that gets aggregated like that, it's not about how
you live. I mean, after a certain point of money,
you can pretty much do the things you want to do.
And that number is it's probably way less than the
(30:24):
billions of dollars. That is certainly way less than the
billions of dollars some people have. So really, what that
money is is nothing more. Then I get to allocate
it for society. Yeah, right to a degree. I mean, yes,
I'm allocating it for myself, but ultimately, if I grow
(30:45):
that capital, it's because I'm being more efficient with it
in society. The benefits society. It can't not benefit society
if it's if it's used properly and if it grows
that that's the society is basically saying you're doing the
right things. With money, right. I mean, that's when you
(31:06):
really break it down, that's that's what's happening there. So
it's hard to be really angry at that process because
that's what's given really all of us, not just in
the United States but even globally now the opportunity to
live the way we live. Yeah, I think we have
the goods and services that we have that didn't even
(31:27):
exist ten, twenty, thirty, forty years ago.
Speaker 4 (31:29):
That is, that seems such like a sage council. And
my impression sort of on the looking back when all
of that is that I think people complain about the
actions of certain people within the space, but the space
itself is what it is. I mean, you can't cast
a villainous nature on like quote unquote market. I mean
there's you can find any number of characters within the market,
(31:51):
just like you can't anywhere in sports or anything else.
You have characters that do all kinds of things, and
that was just kind of an antle thing.
Speaker 3 (31:58):
You know, the media content. Yeah, right, and you know
that's just their stick, I guess. But like Elon Musk,
you know you can say, well, he shouldn't be doing
these things, he should be doing these things but the
one thing you can say is he thinks about big
things and tries to solve them or tries to make
(32:18):
them more efficient.
Speaker 4 (32:19):
Yeah, whatever you think about his foray into politics, and
I don't necessarily love it, but he really is closer
to modern day Howard Hughes than anybody else that we
really have.
Speaker 3 (32:28):
And some of his ideas may flame out and crash
and burn, but that is also the process of achieving things.
I mean, most of the people that are successful have
failed along the way.
Speaker 4 (32:40):
Yeah, yeah, that's very true. And going back to Howard
Hughes for a second, we already know how kind of
strange of an individual he. Imagine how strange we would
have considered him if we had social media about it, right,
you know, I mean imagine if he was like front
and center of everything and you could access his personal
thoughts and he could go and tweet at you directly
and things like that.
Speaker 3 (32:58):
You know.
Speaker 4 (32:59):
I mean, it's hard to tell what we would have
thought of the guy. It's just kind of interesting how
those things come full circle. But before we get out
of here, we talk about this all the time, and
this is the bread and butter of what you do.
But I have seen this in myself. When we talk
about the fear of the marketing different things like that,
people tend to think about a stock or something happening.
And I've been in a situation We've talked about this
before where I know some people in my life that
(33:20):
have been overly obsessed with looking at one particular stock
and they had a significant amount of money in that
at one point in time and didn't really do much
to diversify out of it because it was like a
gift from family or whatever, so they thought like it
was the right thing to do to not change it
or whatever. But looking at how and there was a
few people in that family that look at it the
(33:40):
same way, looking at how they have to evaluate that
and they're literally they're up and down, up and down,
up and down, because for them it's not a broader
role of the market. It is specifically one stock and
it's a considerable amount of money in there. Diversification fixes
that to a Largetification is how you fix that.
Speaker 3 (33:58):
I mean, look at the economy and the progress that
it makes and the quality of our life that that
has risen over time. The process works, but it doesn't
work always for individual companies within that sometimes innovation will
completely destroy a successful company. I mean, look at Sears Sears.
(34:22):
I mean they've built the tallest building in the world
at one point, and now they've disappeared because of innovation.
You know, Amazon and all these other other players came
in and and they innovated and and and Sears did not.
They made some bad decisions. And that has a great way.
I'd already thought of it like that. They did have
the biggest building, I mean that they were everywhere, right, Sorry,
(34:46):
but that just kind of struck me. That's true. And
now it's gone. Now it's gone, and and it happened,
you know, And so people look at that and say,
look at you know that, But that is that's creative destruction.
The people voted with their and how they spend their
money and said, hey, these people have a better way
and it's a better experience for me, or I can
(35:08):
get things cheaper this way, and elected to put their
business elsewhere. So when you hang on to one company,
you run the risk of that creative destruction that happens
in the economy that you're hanging on to the thing
that gets destroyed. And what a great way to put it,
What a great explanation. Yeah, but the market as a
(35:28):
whole is still working and people are actually growing and
making more money because they're using goods and services more efficiently.
Speaker 4 (35:36):
Although Blockbuster Video was destroyed and cannibalized and really doesn't
exist anymore, look at all of the other movie services
that are out there that have arisen.
Speaker 3 (35:44):
From those as streaming everything. But you know it, Blockbuster
made a whole lot of sense at the time, but
they didn't innovate, they didn't continue they and somebody came
and did something that the people, not the companies, street
the people elected by using those goods and services. They
(36:05):
pick the winner. And so what happens all the capital
rushes in uh and aggregates around that to fund that idea.
Speaker 4 (36:13):
That's that's a great way to put and and when
you think about also how companies always find find a way.
I mean, I think of like the music industry. The
music industry, the people won for a short amount of
time in the music industry, like after Napster and all
that stuff, and the record labels realized, hey, we need
to make our music more accessible and make it available
for people. That was great for a very short amount
of time, until suddenly you don't own your music anymore, right,
(36:36):
you know. Now suddenly it's like they made all this
music available for you, but you have to subscribe to
listen to your own music every month. Now they're making
money hand over fist doing that. Hey, that's great, that's
our company if they're doing their thing. But you know,
they find a way. You know, they didn't just throw
up their hands and be like, well everybody's pirting music
now and they and they're going to go and get
their own music. They found a way to make music
when the other make money on the other side of that.
Speaker 3 (36:56):
As you said, they're pirating music. It's basically and see
that's another reason that a country like the United States
and our economy works so well because we do have
property rights. Yeah, you know, there's intellectual property rights that
we have and and and can defend unlike some people
across the pond. That's a good point. That's a good point.
Speaker 4 (37:19):
It's John Berdbt with Fourth Avenue Financial. More information online.
It's fourth Avenue Financial dot com. Fourth Avenue Financial dot Com.
You can find the information there. You can also go
to the You can also go to the website fourth
after Infinnesasional dot com the Facebook address good thing, thank
you yeah. Fourth Avenue also go to the You can
(37:39):
also go to the website fourth AFNU Interfessional dot com
the Facebook address good thing, thank you yeah. Fourth Avenue
Financial on Facebook as well. You can just find the
page and like it. Phone numbers three zero, fourth seven
four six seven Noine seven seven seven four six seven
Noine seven seven John. We'll see you next week, all right,
take care, have a great dy everyone on five ADWHS
The Voice of.
Speaker 3 (37:57):
Charleston m h.
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W C h S A N W two four three
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Q Cross.
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Lanes at w v RC Media Station.
Speaker 2 (38:10):
We're proud to live here too,
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