November 10, 2025 • 37 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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Speaker 1 (00:00):
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Speaker 2 (00:15):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five ADWCHS, 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 in downtown
(00:39):
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 Verdet from to have
(01:00):
any financial.
Speaker 3 (01:01):
Game and very pleasant Monday morning to you. Careful on
the roadway is out there just a little bit of
wet as we had the snow that came through in
the early part of the morning. Not to that out
there probably some slip spots on the bridges, but the
roads are relatively clear at least right now in the
Greater Charleston area in the Canal Valley. So just be
careful as you're heading into work or wherever you're going.
This morning as our first taste of weather for this
(01:22):
winter season. Usually the results aren't always the best when
when that happens. John Fordette is in studio with us
again this week from Fourth Avenue Financial. We're going to
talk about your financial health and how you can retire. Right, John,
Good morning, how you doing. I'm doing great. I've picked
the wrong week to go to Florida. Huh away, yeah, right,
should have waited to avoid this Monday morning, There's no doubt.
But hey, if you have any questions out there, of
(01:43):
course you can help control the conversation this morning. If
you want to know how you can retire, right, you
have some questions, you know, it's always uncertainty. There's nothing
unique about today's time to anything else. But there's always
certainty too, which is the market generally goes up. You
can give us a call this morning three zero four
three four five fifty fifty eight three zero four three
four five fifty fifty. You can text three zero four
non three five five zero zero eight if you want
(02:05):
to keep things on a text base basis. That's three
zero four non three five five zero zero eight. Will
be here until nine o'clock. So you're welcome to give
us a call or send a text throughout this morning
and helped John, or let John help you navigate through
whatever questions you have about your financial health, be it
in retirement or investments you're looking to make broadly speaking,
or anything along those lines. So we're coming back around.
(02:26):
You're back from Ford to this week, and it looks
like that the government shut down is possibly going to
be coming to a close sometime soon.
Speaker 4 (02:34):
Anyway, it appears that way.
Speaker 5 (02:35):
And you know, the market last week did take a
little bit breather. It went on vacation with me apparently,
but you know, the market was down one percent that
the tech stocks got hit a little harder. Last week,
the Nasdaq was down three percent. And there again, the
earnings of these companies have come out. The earnings of
these companies have have been great. There's just you know,
(02:59):
fear out there that maybe we're running ahead of ourselves
a little bit. And and actually this is a healthy thing. Uh,
to see these kind of pullbacks within the market. You're
going to always see kind of the fits and starts
of the market as it as it churns higher.
Speaker 3 (03:14):
In some ways doomers where they try to lean into
stuff like this, like, well there was a pull a
little bit of a pullback from the from the text stocks. Uh,
last last week they didn't crash. And so actually, like
what you're talking about, you're talking about like sort of
a healthy breathing of the of the industry. I mean,
you want to see some retraction in some in some
(03:35):
I guess good faith skepticism when it comes to these things,
and you expect that to happen. If it was just
going straight up, then that would be a problem.
Speaker 5 (03:42):
Right, And and like you say, last week, those stocks
let off a little bit of steam and came down.
What is that that's like ten days of growth the
previous ten days. You know, it grew by that much,
and nobody's talked about that. I mean, well people talked
about it, but didn't think that was a problem. So
so you know, put that in perspective. You know, earnings
(04:03):
are coming in solid now. What is happening, and what
the expectation is is is that earnings going forward are
going to be more evenly distributed throughout the different industries.
So right now, the tech stocks have been powering ahead
and earning their earnings growth is two to three times
(04:26):
what the average non tech stock has been, which has
left the rest of the market behind. The expectation is
the earnings growth of those tech stocks will start to slow,
not go down, but just the growth rates slow and
the growth rates of the other industries should be expanding
(04:52):
over the course of the next year. That's what the
expectation is, which is very very healthy. You know, you're
going to see maybe some moderation and now maybe some
participation of some of these other stocks in the in
the growth of the market.
Speaker 3 (05:05):
And that only helps everyone. You mentioned something before we
went on there that I thought was really insightful. You
get a lot of folks when these things are happening,
when the market is going well, and that conversation people
are so kind of If you're not an expert, you
hear these things about the well, you get in low
and then you sell high and that's how you make
your money. And it's almost like people confuse like day
traders or something with with with your with your retirement plan,
(05:28):
because that's not what you're worried about. The market being
out of high. That doesn't mean that you shouldn't buy in.
That means that the market's doing its job and it's
likely to be in another high next year, and then
the next year and then the next year. You shouldn't
wait to get into your retirement plan or whatever it
might be, just because the market's doing well.
Speaker 4 (05:42):
Yeah, that's right.
Speaker 5 (05:43):
I mean, there are periods of time where the market
does go down, but if you hold long enough, if
your tom horizon is long enough, the market always reaches historically,
is reach new highs you take you know, the Dow.
If you're within five percent of the high and you buy,
(06:03):
the likelihood of you being higher a year from now
is the same if you if you waited until it
was ten percent off. It doesn't seem to make sense,
but statistically it does because the market generally, even if
it declines greater than five percent, within a year, it's
(06:24):
back to new highs. So's it's all about the holding
period rather than it is guessing if you have a
long term goal.
Speaker 4 (06:32):
You know.
Speaker 5 (06:32):
There again, I always tell folks to that, I say, well,
it's high should invest. And the right time to invest
is when you have money. That is exactly the right
time to invest. If you've got your foundation built, if
you've got your emergency funds, if you've got your your
consumer debts paid off, and you have money, you should
(06:53):
be putting it to work. You shouldn't be trying to
guess and out guess the wisdom of the collective market.
Speaker 4 (07:00):
Right. Yeah, that makes a lot of sense.
Speaker 3 (07:02):
And you could put a strategy and this is this
is what John does, So you could put a strategy
in place. If you find yourself in that situation where
you have money that you can go put to work
for you, don't try to figure it out. My wife
was talking to me this week and it was like,
what do you think She was talking about buying a
diamond or something. I'm like, I'm like, look, if you
want to buy a diamond with your you can do
whatever you want to with it. But as an investment, no,
you don't want to buy a diamond. That's that doesn't
(07:23):
make any sense. And I could you could call John
and talk to him if you want to, and exactly why.
That doesn't make a lot of sense, but I'm a
little you know, scared that anytime somebody could flood the
diamond market or any number of things, you know, but
it just you want to make sure if you have
that money, that there's ways that you can make it
put to work. Even if you're somewhat conservative or whatever
it might be, you can find ways to put that
to work for you.
Speaker 4 (07:43):
Oh yeah, no doubt about it.
Speaker 5 (07:44):
There are all kinds of facets of the market you
can invest in and diversify and there again, and it
needs to line up with what your individual goals are.
Speaker 4 (07:54):
And so.
Speaker 5 (07:55):
You know, the market is not an individual stuff. You know,
the market is the collective of hundreds of companies, the
S and P five hundred and five hundred companies, the
greatest companies in the world. It's their collective valuation. And yes,
one company may have good fortunes and one company may
(08:16):
have bad fortune. But if you're well diversified, if the
quality of our life improves, if our productivity improves, the
goods and services and access to that improves, like historically,
I mean, you and I over fifty plus years have
not known anything other than that. Yeah, you know, if
(08:38):
you think that that's going to continue, that we're going
to continue to innovate and do things more efficiently, and
your patient, why wouldn't you want to own the companies
that are that's providing all of that. And that's what
it is. That's investing. You know, Trading is looking at
a stock and saying, oh, it's got this momentum and
I'm going to buy now, and I'm going to sell
(09:00):
a week from now or a month from now. That's
a whole lot different than investing. You know, when you're
talking about trying to build a program for yourself, trying
to make sure that you reach goals that are long term,
you need to be investing, not trading.
Speaker 3 (09:15):
Yeah, trying to pick winners and losers in that situation
is really want to hurt you, Right, I'm thinking just
in my time where I've seen folks that for example,
if you were in on you know, the web one
point zero when things were first starting to launch out
and I'm not even talking about the dot com first.
I'm talking about like just say, the search engine infrastructure.
If you would have been around back when Google was
(09:37):
Nansen and asked, Jeeves and Yahoo were so prominent, you
would have thought that the leading technology at the time
probably was Yahoo would have been your search leader, you know,
your your email leader for online email was probably Hotmail.
You know, I mean these were like the so that
would be possibly an analog to maybe, you know, like
(09:57):
an open ai right now, that's the name that everybody
knows and the thing that everybody attaches to, you know,
like Google mail and email were synonymous for a long time,
or hot mail and was synonymous for a long time,
and it's not the case anymore. Eventually, those things start
to the industry matures, and the original players that kind
of brought things to the forefront aren't necessarily the ones
that's going to be making all the juice in the
(10:19):
future of that thing. That's why the industry is important.
But being a trader and trying to guess winners and looters,
is that that could be a real problem.
Speaker 5 (10:26):
Oh yeah, I mean you're you're assuming that you have
some kind of an insight that the collective market doesn't have,
and what are the odds that you do?
Speaker 3 (10:34):
Yeah, who would have really have known for sure that
Amazon would have outperformed by dot com at one time
they were basically equals, you know, by dot com was
really a really popular site to go to buy stuff.
Speaker 5 (10:44):
Yeah, and as an individual company, look at Navidia. Navidio's
powered the indexes forward. If you're an investor and diversified,
you've participated in that already, you're participating in it as
we as we speak. But as an individual looking at
that one company, you know, I missed it personally, you know,
I didn't invest in the video as an individual company.
(11:07):
Now I've participated in it through my investments, but you know,
at the time, the only thing I knew about in
the video was that they were making those graphics cards
for bitcoin minding, right, which I didn't think made a
whole lot of sense to me, And I thought, well,
if something happens to bitcoin, then what's going to happen
to their earnings. Well, now we see that that was
(11:29):
a wrong assumption, you know.
Speaker 3 (11:32):
But which in itself was a crazy pivot because for
years in the video was known as the graph was
that their graphic cards were for gamers, you know, that
was like their big thing. It was like gamers. They
transitioned to bitcoin, and now they're transitioned to AI, right.
Speaker 4 (11:44):
And so.
Speaker 5 (11:46):
I missed that. How many people miss that? A lot
of people missed that if you were trying to pick
the individual stock. But if you're an investor and are diversified,
you've definitely participated in that, and you don't have to
guess what the right company is going to be. You know,
you're not necessarily betting on the right horse. You're just
betting on the system and the process of innovation and
(12:10):
progress that happens over time when you invest in the market.
Speaker 3 (12:13):
Is there any kind of and again, when the market
is when you're talking broadly, interruptions shouldn't affect you too
much as a as an investor for your retirement, but
as assuming that the government starts to reopen with the
deal that's been made, and then, you know, we haven't
had official government data for a long time. You've seen
some unofficial stuff that's come together. Is there any like
(12:35):
sort of a bracing period that you should be aware
of when data starts flooding in just in case, Hey,
it's going to show unemployments really bad, or inflation's a
lot hotter than we thought, or whatever it might be,
or do you just have to kind of ride that
kind of thing out.
Speaker 5 (12:47):
I suspect that we have generally know what's going on
from other sources, you know, people that with the boots
on the ground, the companies that are that are you know,
doing the payroll services, the company they report data that
we have that's going to be in the ballpark. You know,
(13:08):
the job's market is definitely slowing, but still growing. You know,
we may see some unemployment taking up slightly, but it's
it's still a relatively healthy jobs market close to the
I think thirty five forty percent of the job losses
have have been in the government sector. So you know,
(13:33):
it's it's scrashing the surface on the size of government.
But but there have been job losses in the government
sector more so than than any other sector. Right, it
would take that, you know, good or bad what it is? Yeah, yeah,
it is right, But but it it that tends to
be less economic sensitive job losses than other types of
(13:57):
companies who are looking at their their future earnings, future
business prospects and pulling back on the reins. And over
time too, you know, at some point we may even
see impacts of some of this AI efficiency affecting the
jobs market to some degree.
Speaker 3 (14:14):
Now I read some stuff this weekend where there's some
unofficial surveys being done of some companies that have on
boarded the AI in different places, and yeah, there's yeah,
you know, there's some graphs and things out there that
show that there is a little bit of a softening
because of AI in some industries right.
Speaker 5 (14:27):
Right, which there again, it depends on what hat you're wearing.
You know, if you're the person that lost that job,
that is a it's a bad thing. If you're a
long term investor in the profitability of companies like we
talk about on the show, you will benefit from that efficiency.
And then the idea is the labor the capital. Labor
(14:51):
capital can be redeployed somewhere else in another efficient manner,
and that's how the economy grows. And so, you know it,
it's easy to look at things and just pick that
negative out. But if the market is and not just
the stock market, but just people voting with their feet
(15:12):
and saying, Okay, this is more efficient, I'm going to
do it this way, you know, that's going to be
the winner. You know, that's how that's how these things
are decided, and that's how we allocate our resources in
our capital. I mean that's what the market does. That's
why you know, you see the United States occasionally have
(15:32):
these hiccups where there's an economic downturn. That's that's bad.
Two thousand and eight, for instance, was the last you know,
non COVID issue. That was a pretty deep thing. But
we bounce back pretty quick. Why did we do that
because because we're relatively efficient at at voting with our
feet and making adjustments. And some other types of economies
(15:58):
I'm thinking China for instance, you know, they're not as
efficient of allocating those resources because one person is largely
deciding how they get allocated. We have millions of people
every day voting with their feet deciding how capital gets allocated,
which sometimes can seem inefficient, but actually it over time,
(16:21):
is an extremely efficient way of allocating resources.
Speaker 3 (16:24):
The I guess the I don't know if it's been
a secret from everyone, but one of the things I
guess this weekend, big story that was breaking across some
of the news in financial sectors as far as China goes,
is it hasn't necessarily been hiding, but it hasn't been
frontline news that China's in the middle of a depreciation.
They have the cost of everything is falling. The goods
(16:44):
are falling. I mean, and people here might be like, oh,
what did China do right? They're the groceries are more
affordable now. No, no, no, this is not good news.
China's in a lot of trouble right now when it
comes to these things. And whatever you think about COVID,
the recovery, whatever else, we did it better than that,
you know, in a lot of other countries, you know,
(17:06):
they're in a lot of trouble, you know, And so
you're right, it seems like that the way that they they've.
Speaker 4 (17:10):
Invested in.
Speaker 5 (17:13):
Unproductive infrastructure, they've invested in product product production facilities to
produce goods and services well beyond what the market will bear.
You know, a company will you know, they're not going
to do that, and if they do, they don't last,
(17:33):
you know, and the problem corrects itself. There's no there
has been no correction in an economy like that that
is commanded by essentially one person. Those those abnormal things,
they fester and they grow and they become large problems.
Speaker 6 (17:54):
You know.
Speaker 5 (17:55):
Usually, you know, looking across our economy, usually a problem
gets snuffed out before it becomes a major problem because
of the way you know, we're structured.
Speaker 3 (18:10):
China is also apparently from the government side of things,
and of course that works a little differently than here.
But sometimes you have to be aware of flags going
through some processes to limit media access. They're changing their
media access rules and things that media could get in
contact with.
Speaker 5 (18:25):
Now familiar beats, yes, And you know, with a system
like China, it can sometimes seem like it's superior because
one person can make the decision. It's clean. You know,
you say, well, we're going to do this and put
all the capital behind it, and by golly, they can
(18:45):
maybe do things faster because there's not this process to
check some balances along the way. And so when things
go good like they have in the last twenty years
fifteen years in China, you know it's like, wow, that's
a better system. Well, you know, history shows that that
(19:06):
it is not a better system than millions of people
having to vote with their feet and their money. And
you know, there's really never been a time over a
long period of time that that that is superior. That
doesn't mean we're flawless and the way we we operate
and there's not flaws in the systems and flaws and capitalism.
(19:27):
There's no perfect sence. Best is not perfect, right, right,
but but it's kind of interesting to see, and I
think that does play in a part why you know,
you get those questions like why should I invest if
the market is at high? Well, because of that right,
because of that persistence to to improve over incrementally over time.
Speaker 3 (19:51):
It's great stuff with jeenre debt for Fourth Avenue Financial.
Encourage you to give us a call if you have
any questions this morning, or well, don't give John a call.
You can tap into the conversation. Threes are a four
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Speaker 4 (20:05):
Zero zero eight. Let's do this. Let's go and take
our break.
Speaker 3 (20:07):
When we come back, we have plenty more do we
want to talk about more about the market and investment
for your retirement today and also any questions that you have.
You can control the conversation again three zero four three
four five fifty fifty eight text three zer four non,
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more informational online. Fourth Avenue Financial dot Com. You spell
out the whole thing Fourth Avenue Financial dot Com. You
can also go to Facebook and like the page over
there and be kept up to date one events via
(20:29):
Facebook as well. We'll take a break and be backgraft
to this. I'm Del Cooper. You're listening to retire Right Radio,
but John Bredet from Fourth Avenue Financial on five eight
WCHS the Voice of Charleston.
Speaker 7 (20:38):
Retire Right Radio a sponsored by Fourth Avenue Financial, which
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John Burdet should not be construed as specific investment, legal,
or tax advice. All economic and performance information is historical
(21:00):
and not indicative of future results. Investing may involve risk
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is not intended to be used by any person for
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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
(21:20):
is not providing legal or tax advice. Nothing should be
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Speaker 6 (23:00):
This is retire Right Radio with John Burdett from Fourth
Avenue Financial taking your calls at three oh four three
four five fifty eight fifty eight or texts on three
oh four nine tree five fifty oh eight.
Speaker 3 (23:29):
You're listening to or tirry Right Radio one five ATWHS
the Voice of Charles and I'm Del Cooper. Thanks for
tuning in on this Monday morning. John Burdett is here
with us from fourth Avenue financially, You're welcome to give
us a call this morning if you have any questions
about your retirement future, how you can retire right three
zero four three four five fifty eight fifty eight you
can text three zero four non three five five zeros
er eight three zero four non three five five zero
zero eight. A couple of things I saw a little
(23:50):
bit in the news being floated around this weekend, and uh,
this isn't something that is any sort of official policy yet,
but we can talk about this in context of things
that do exist. I saw that there was a suggestion
floated around for possibly having like a fifty year mortgage
out there, you know, because it would reduce your payments,
you know. I mean, if you expand the amount that
(24:12):
you're paying over, then it makes sense that it reduces
your payments. The problem is there's interest that pays into that.
And you're talking about average adding almost a whole other
loan time frame.
Speaker 5 (24:21):
Yeah, buying the house three times instead of twice.
Speaker 4 (24:23):
Yeah, And I was doing some and I know this.
Speaker 3 (24:26):
I know this these numbers a little bit because I
was in the mortgage industry for a while, so I
know what any five year increment will do to the
amount of interest that you pay back, and it's absolutely ridiculous.
So imagine adding twenty years to what you're already doing,
and it's pretty I don't know about the how much
sense that that makes, but there are products that actually
exist today that are similar to that in the auto industry,
for example, and things like that. And I'm just thinking,
(24:47):
like the last time I went to go finance a car,
and I tried. Believe me, I went fifteen years without
financing a car. I'll run my cars into the ground
if I can keep from it. But the last time
I went to go finance a car I had, I
was shocked that they were offering me. I remember if
it was six or seven years. It was like, I thought,
five was the mix that you can go back when
I was the last time that i'd financed the car,
five was the mix I could go. I financed for
three and paid it off in two and a half.
(25:11):
This one, like the last time that I got it
they were offering me is like we were payment shopping
a little bit at first, and then I started saying, well,
this is a decent payment, Uh, what's the terms? And
then you find out the terms are like seventy two months.
I'm like, I don't want a seventy two month car?
Are you kidding me? And so some of this stuff
can be I mean, it sounds good on the front
end because yeah, you can save a little money and
stuff like that, but man, that interest really pals up.
Speaker 5 (25:33):
Yeah, And it's important to realize what the true cost
of something is. You know, if you buy a car
for thirty thousand dollars, you know, that's what you need
to look at. That's what your you know, that's what
the cost of the car is. Those monthly payments added up,
that's the cost of the loan. That because you can't
afford to buy the car up front. And so I
(25:54):
think what would happen just thinking this through, if you
have fifty year mortgages instead of thirty or fifteen, it
would actually work against affordability in the long run because
it would inflate the price of housing.
Speaker 4 (26:11):
Because some manly people could pay. Yeah, right, I see
what you're saying.
Speaker 5 (26:13):
Right, you know, anytime you introduce more money into a system,
that's that's what's going to happen. And so people are like, well,
houses are so expensive now? Well, because houses are so expensive. Now,
that is the market saying, hey, houses are expensive, that
should over time put some sort of a governor on
(26:36):
that on that. Now, if you go to a fifty
year mortgage and throw that into the mix, that relieves
that market pressure of that monthly payment and allows it,
that allows the price to be extended. That's the way
I would see that. You know, you can't escape from
the price of something. You know you can finance it,
but you still have to pay it and pay it
(26:56):
with interest. So your best you know, not looking at
what your payment is. You know, when you go into
a car dealership, everybody's done this and they ask you
what would you like your payment to be? Don't answer
that question because the cost of the car is the
number of the price of the of the of the
vehicle that they're going to sell it to you. If
(27:17):
you were writing a check. That's the important thing. All
the financing can be worked out after you determine that
number if you need financing. But you know, it's easy
to work backwards and say, well, I want my payment
to be five hundred dollars a month.
Speaker 4 (27:31):
Well, then the.
Speaker 5 (27:32):
Price of the car can be almost anything, depending on
how you financing at the end.
Speaker 3 (27:38):
As an example using a possible homeworgage. I was doing
some math during the break and one of the things
I came up with, For example, if say you wanted
to get your home for under fifteen hundred dollars a month,
that's all that.
Speaker 4 (27:49):
You asked for.
Speaker 3 (27:49):
Well, at fifty years, at a six point seventy five
interest rate, you can have a two hundred fifty thousand
dollars home at This is just principal an interest, not
with taxes in insurance. At fourteen hundred and fifty six
dollars a month you met the bill, you got an
or fifteen hundred dollars a month. That same thirty year
mortgage at today's rates would be a little over fifteen hundred.
It would be about five hundred or fifteen hundred and
fifty dollars a month. So that's too much money. However,
the difference in the amount that you're paying back in
(28:10):
that over a thirty year period under the thirty year mortgage,
that you would be paying back about five hundred and
fifty seven thousand dollars. So interest really gets you there
a little bit, so twice as much, a little bit
more than twice much. In what you borrowed to begin with.
Over fifty years, that number balloons to eight hundred and
seventy three thousand dollars three hundred thousand dollars more in
interest that you're paying back over that time only in
one hundred dollars a month savings.
Speaker 4 (28:32):
Yeah, so a little bit backwards you wish for.
Speaker 3 (28:36):
Yeah, that's a look and this goes for a lot
of things on when people look at the cost of
something upfront instead of like what the actual Sometimes people
say costs versus value, But in a lot of cases
when it comes to finances, you really have to know
what it is. In this case, and what you would
advise somebody to do is see what it is you
could actually afford using normal financial tools, and then you
(28:57):
make it so your finances matches that you can put
money to work for you, not try to game the
system so you're less than ideal finances could can work
for you.
Speaker 4 (29:07):
That's just not the smart way that payback.
Speaker 5 (29:09):
You know, that extra eight hundred thousand could have been
working for you.
Speaker 4 (29:13):
That's a great point, right, you know. That is where.
Speaker 5 (29:17):
It all comes back to the same rules we always
talk about. You know, earn money and live below your
means is that is what this is saying. If you
live below your means. In other words, yes, the bank
will alan me this money, but do I need to
really be what is the ultimate.
Speaker 4 (29:36):
Cost of that?
Speaker 5 (29:37):
Well, the cost of that is now you have eight
hundred thousand dollars that you weren't able to invest productivity
in productive investments, which maybe two or three or four
million dollars of your retirement money. So you know, you've
bought a fifty thousand dollars bigger house. Yes, you might
(29:58):
enjoy that now, but you're going to be enjoying that
house for a long long time time and not ever
be being able to, you know, move beyond that. You're
going to have to keep working to keep paying that payment.
Speaker 4 (30:15):
To that point.
Speaker 3 (30:16):
What this reminds me of a little bit when I
was in the mortgage industry working on the broker side
of things. Thirty your mortgages even then were considered Yeah,
you saw some people hold note for thirty years, but
more often than not, thirty years was already people that
were looking to lower their rate as much as possible,
with the expectation, at least when the market was good
and rates were pretty decent they'd refine five years, or
they had refined ten years, try and or we're only
(30:39):
going to be in this house for so long or whatever.
Speaker 5 (30:40):
It might be right, right, and you know that that's
I mean, there are all kinds of tools you can
use depending on your situation.
Speaker 3 (30:48):
The problem with that, of course, when you refine, that's cost.
That's cost off the top, that's not even interest costs.
You're paying money to do the refi.
Speaker 5 (30:55):
Right, right, and and there are some periods of time
where you know, in the in the late seventies, you're
a handful of years ago where prices escalated quickly. You know,
those type of deals and those financing deals. Certainly, it's
just like timing the market. I mean, it's possible that
some things make sense in certain environments. Yeah, well, but overall,
(31:20):
you know, there's no free lunch. You have to if
you're consuming that home by living in it, you have
to pay for it.
Speaker 4 (31:26):
Eventually.
Speaker 3 (31:26):
There was a narrow sliver of time in the late
nineties in the early two thousands, and that's when I
was in the industry where there were people with sterling
credits seven hundred credit scores that had interest rates in
eleven or twelve percents because they had got those rates
ten or twelve years before. They were about fifteen years
into a thirty year mortgaging. You could call virtually anybody
and say, I could give you your same fifteen year
mortgage remaining, cut your interest rate by two thirds, give
(31:49):
you fifty thousand dollars cash out, and your payment still
goes down. Would you like to sign right? And everybody
said yes. I mean, it was impossible for people not
to sign on that deal. But those that environment does
not existingmore, it's because it's already played out.
Speaker 5 (32:03):
No, and it's it's the same thing as trying to
time the stock market. You know, you can always look
and try, well, I can game it. I think this
is going to happen, that's going to have You know,
that requires clairvoyance that none of us have, and to
to be able to think that you can time the
(32:23):
real estate market, the stock market, any any market. Because
you're one individual out of millions that are that are
making those decisions. You know, just because you do something,
you're not influencing the market. You know what what you
think is going to happen may or may not happen,
but you have no control over that and so that's
a game that that in whether it be real estate
(32:46):
or or or the market, it's it's not something you
can consistently win at.
Speaker 3 (32:51):
And broadly is the things that we talked about this
morning with jarberdet for Fourth Avenue financial are things that
that are pitfalls that folks may observe try to avoid
things along those lines. And reason we talk about all
of these things sort of as topics is these are
also the things that John helps with. So any of
these things that sound a little bit worrisome or man,
there are a lot of different financial options out there.
I almost thought about taking a reverse mortgage one whatever
(33:13):
it might be, and maybe you need a little bit
of help counseling through that. Not everybody understands exactly what
the financial ramifications are going to be, especially fifteen or
twenty years down the road, and what's going to mean
for your retirement, how that interest compounds and everything else.
That's why it makes sense to reach out to somebody
that can help you do your financial planning and to
make sure that you're making solvent decisions. You know that
you're not being sort of marketed into making a decision
(33:34):
that's not going to be best for you, and that's
why you should give John a call. You can find
out more about Fourth Avenue Financial online. It's fourth Avenue
Financial dot com. Fourth Avenue Financial dot Com. They're located
at one seventy Court Street, Downtown Charleston. Three zero four
seven four six seven non seven seven three zero four
seven four six seven nine seven seven.
Speaker 4 (33:49):
And it just so happens.
Speaker 3 (33:50):
Although John will tell you anytime that just because you're
not the end of the year is not necessarily the
best time to make major changes and things like that.
Sometimes it's some one people brains. You know, you're getting
your tax stuff together, you're getting your documents together, open
enrollment for my insurances right now. A lot of people
are probably going through that right now. So you're kind
of thinking about these things anyway, So it may not
(34:10):
be a bad opportunity to pick up the phone and
see what you can do better for your retirement future.
Speaker 5 (34:14):
Yeah, it's a good time, right before things get real
busy for the holidays, you know, take a little time
out for yourself and come on in and let's take
a look. It doesn't cost anything for that first consultation,
and it's a pretty pretty easy left.
Speaker 3 (34:31):
Maybe this is something we could get into a little
bit deeper as we get closer to the holiday season.
But what we are in the holiday season, I guess
there's no there's no denying that anymore. But as we
get closer to actually Christmas time and the gifts and
everything like that, every year there's somebody comes out with
an article with how much debt we go into over Christmas?
You know, people spend credit card debt and things along
those lines. I used to do that when I was younger.
(34:53):
I've gotten, I hope better in my adult age that
I only buy what I can afford. And I would
never go into debt to buy gifts for people because
that's counterproductive, you know, but that's not the case for everyone.
And if you have a big family, you know you're
looking to buy for your kids. What are some tip
I mean, you just want to save, right, you want
to only spend what you can, try to do it
in cash. Make smart decisions.
Speaker 5 (35:14):
Yeah, don't don't don't borrow to give gifts. That's a
great uh, a great one. And you know, think about
you want to give something to your loved one. You
know you can do things meaningful that don't cost a
lot of money doesn't mean you're not giving a gift.
It just might not be the type of gift that
(35:34):
you maybe initially think of. Uh, think about things like that,
and and also think about that level one that that
you care about that you want to give that gift to.
Would they want to see you in a financial mess?
Probably not, you know, so think think about those things
as you go, as you go shopping and uh. And
(35:55):
if you've saved and you've set aside money and it's
within your budget and you want to give something to somebody,
go do it. But but if if not, get the
financial house in order, so next year and the year
after and the year after you'll be able to do
that with confidence.
Speaker 3 (36:10):
Yeah, you just want to make sure you're making right decisions.
Don't spend yourself into some sort of despair because because
you have too big of a heart. I mean, you
find people that want to give, give, give, and they
don't have the financial means to give. And you know,
sometimes maybe there's something else you can do for someone
that that's not necessarily reaching so deep into the financial misery,
because that unfortunately, as great as Christmas is and as
(36:32):
great as our as our holidays are, sometimes folks get
that a little bit upside down. I think it's the
family first, not the.
Speaker 4 (36:37):
Gift of time. Time is the best gift you could give.
Speaker 3 (36:40):
No, Hey, that's very true. Spend some time with your
loved ones and that will pay off in dividends. Well, John,
thank you so much for your time today. Hey, that
was almost a pun for the show too. Thanks so
much for the time today, and we'll see you back
here next week. And with all things that are going
on with the market, it should be an interesting week.
Maybe the government shut down ends, maybe we start getting
some federal days on some of uh, you know, employment
(37:02):
and inflation and stuff like that.
Speaker 4 (37:03):
So we'll have a spirited show next week. Sounds good.
Sounds good.
Speaker 3 (37:06):
That's John Badet with Fourth Avenue Financial. He can help
you out Fourth Avenue Financial dot Com. One seventy Court Street,
Downtown Charleston. Seven four six seven nine seven seven three
zero four seven four six seven nine seven seven seven
four six seven nine seven seven.
Speaker 4 (37:18):
That's gonna do it for us.
Speaker 3 (37:19):
Coming up next, Dave Allan's gonna be here with five
eighty Live talk line will come this afternoon, followed by
midday and then I'll be back this afternoon at three
oh six with Dave Weekly on Hotline on this Monday.
Speaker 4 (37:29):
Have a great day. Everyone. Listening to five ad w
CCHS we are your voice of Charleston.
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Speaker 2 (00:15):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five ADWCHS, 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 in downtown
(00:39):
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 Verdet from to have
(01:00):
any financial.
Speaker 3 (01:01):
Game and very pleasant Monday morning to you. Careful on
the roadway is out there just a little bit of
wet as we had the snow that came through in
the early part of the morning. Not to that out
there probably some slip spots on the bridges, but the
roads are relatively clear at least right now in the
Greater Charleston area in the Canal Valley. So just be
careful as you're heading into work or wherever you're going.
This morning as our first taste of weather for this
(01:22):
winter season. Usually the results aren't always the best when
when that happens. John Fordette is in studio with us
again this week from Fourth Avenue Financial. We're going to
talk about your financial health and how you can retire. Right, John,
Good morning, how you doing. I'm doing great. I've picked
the wrong week to go to Florida. Huh away, yeah, right,
should have waited to avoid this Monday morning, There's no doubt.
But hey, if you have any questions out there, of
(01:43):
course you can help control the conversation this morning. If
you want to know how you can retire, right, you
have some questions, you know, it's always uncertainty. There's nothing
unique about today's time to anything else. But there's always
certainty too, which is the market generally goes up. You
can give us a call this morning three zero four
three four five fifty fifty eight three zero four three
four five fifty fifty. You can text three zero four
non three five five zero zero eight if you want
(02:05):
to keep things on a text base basis. That's three
zero four non three five five zero zero eight. Will
be here until nine o'clock. So you're welcome to give
us a call or send a text throughout this morning
and helped John, or let John help you navigate through
whatever questions you have about your financial health, be it
in retirement or investments you're looking to make broadly speaking,
or anything along those lines. So we're coming back around.
(02:26):
You're back from Ford to this week, and it looks
like that the government shut down is possibly going to
be coming to a close sometime soon.
Speaker 4 (02:34):
Anyway, it appears that way.
Speaker 5 (02:35):
And you know, the market last week did take a
little bit breather. It went on vacation with me apparently,
but you know, the market was down one percent that
the tech stocks got hit a little harder. Last week,
the Nasdaq was down three percent. And there again, the
earnings of these companies have come out. The earnings of
these companies have have been great. There's just you know,
(02:59):
fear out there that maybe we're running ahead of ourselves
a little bit. And and actually this is a healthy thing. Uh,
to see these kind of pullbacks within the market. You're
going to always see kind of the fits and starts
of the market as it as it churns higher.
Speaker 3 (03:14):
In some ways doomers where they try to lean into
stuff like this, like, well there was a pull a
little bit of a pullback from the from the text stocks. Uh,
last last week they didn't crash. And so actually, like
what you're talking about, you're talking about like sort of
a healthy breathing of the of the industry. I mean,
you want to see some retraction in some in some
(03:35):
I guess good faith skepticism when it comes to these things,
and you expect that to happen. If it was just
going straight up, then that would be a problem.
Speaker 5 (03:42):
Right, And and like you say, last week, those stocks
let off a little bit of steam and came down.
What is that that's like ten days of growth the
previous ten days. You know, it grew by that much,
and nobody's talked about that. I mean, well people talked
about it, but didn't think that was a problem. So
so you know, put that in perspective. You know, earnings
(04:03):
are coming in solid now. What is happening, and what
the expectation is is is that earnings going forward are
going to be more evenly distributed throughout the different industries.
So right now, the tech stocks have been powering ahead
and earning their earnings growth is two to three times
(04:26):
what the average non tech stock has been, which has
left the rest of the market behind. The expectation is
the earnings growth of those tech stocks will start to slow,
not go down, but just the growth rates slow and
the growth rates of the other industries should be expanding
(04:52):
over the course of the next year. That's what the
expectation is, which is very very healthy. You know, you're
going to see maybe some moderation and now maybe some
participation of some of these other stocks in the in
the growth of the market.
Speaker 3 (05:05):
And that only helps everyone. You mentioned something before we
went on there that I thought was really insightful. You
get a lot of folks when these things are happening,
when the market is going well, and that conversation people
are so kind of If you're not an expert, you
hear these things about the well, you get in low
and then you sell high and that's how you make
your money. And it's almost like people confuse like day
traders or something with with with your with your retirement plan,
(05:28):
because that's not what you're worried about. The market being
out of high. That doesn't mean that you shouldn't buy in.
That means that the market's doing its job and it's
likely to be in another high next year, and then
the next year and then the next year. You shouldn't
wait to get into your retirement plan or whatever it
might be, just because the market's doing well.
Speaker 4 (05:42):
Yeah, that's right.
Speaker 5 (05:43):
I mean, there are periods of time where the market
does go down, but if you hold long enough, if
your tom horizon is long enough, the market always reaches historically,
is reach new highs you take you know, the Dow.
If you're within five percent of the high and you buy,
(06:03):
the likelihood of you being higher a year from now
is the same if you if you waited until it
was ten percent off. It doesn't seem to make sense,
but statistically it does because the market generally, even if
it declines greater than five percent, within a year, it's
(06:24):
back to new highs. So's it's all about the holding
period rather than it is guessing if you have a
long term goal.
Speaker 4 (06:32):
You know.
Speaker 5 (06:32):
There again, I always tell folks to that, I say, well,
it's high should invest. And the right time to invest
is when you have money. That is exactly the right
time to invest. If you've got your foundation built, if
you've got your emergency funds, if you've got your your
consumer debts paid off, and you have money, you should
(06:53):
be putting it to work. You shouldn't be trying to
guess and out guess the wisdom of the collective market.
Speaker 4 (07:00):
Right. Yeah, that makes a lot of sense.
Speaker 3 (07:02):
And you could put a strategy and this is this
is what John does, So you could put a strategy
in place. If you find yourself in that situation where
you have money that you can go put to work
for you, don't try to figure it out. My wife
was talking to me this week and it was like,
what do you think She was talking about buying a
diamond or something. I'm like, I'm like, look, if you
want to buy a diamond with your you can do
whatever you want to with it. But as an investment, no,
you don't want to buy a diamond. That's that doesn't
(07:23):
make any sense. And I could you could call John
and talk to him if you want to, and exactly why.
That doesn't make a lot of sense, but I'm a
little you know, scared that anytime somebody could flood the
diamond market or any number of things, you know, but
it just you want to make sure if you have
that money, that there's ways that you can make it
put to work. Even if you're somewhat conservative or whatever
it might be, you can find ways to put that
to work for you.
Speaker 4 (07:43):
Oh yeah, no doubt about it.
Speaker 5 (07:44):
There are all kinds of facets of the market you
can invest in and diversify and there again, and it
needs to line up with what your individual goals are.
Speaker 4 (07:54):
And so.
Speaker 5 (07:55):
You know, the market is not an individual stuff. You know,
the market is the collective of hundreds of companies, the
S and P five hundred and five hundred companies, the
greatest companies in the world. It's their collective valuation. And yes,
one company may have good fortunes and one company may
(08:16):
have bad fortune. But if you're well diversified, if the
quality of our life improves, if our productivity improves, the
goods and services and access to that improves, like historically,
I mean, you and I over fifty plus years have
not known anything other than that. Yeah, you know, if
(08:38):
you think that that's going to continue, that we're going
to continue to innovate and do things more efficiently, and
your patient, why wouldn't you want to own the companies
that are that's providing all of that. And that's what
it is. That's investing. You know, Trading is looking at
a stock and saying, oh, it's got this momentum and
I'm going to buy now, and I'm going to sell
(09:00):
a week from now or a month from now. That's
a whole lot different than investing. You know, when you're
talking about trying to build a program for yourself, trying
to make sure that you reach goals that are long term,
you need to be investing, not trading.
Speaker 3 (09:15):
Yeah, trying to pick winners and losers in that situation
is really want to hurt you, Right, I'm thinking just
in my time where I've seen folks that for example,
if you were in on you know, the web one
point zero when things were first starting to launch out
and I'm not even talking about the dot com first.
I'm talking about like just say, the search engine infrastructure.
If you would have been around back when Google was
(09:37):
Nansen and asked, Jeeves and Yahoo were so prominent, you
would have thought that the leading technology at the time
probably was Yahoo would have been your search leader, you know,
your your email leader for online email was probably Hotmail.
You know, I mean these were like the so that
would be possibly an analog to maybe, you know, like
(09:57):
an open ai right now, that's the name that everybody
knows and the thing that everybody attaches to, you know,
like Google mail and email were synonymous for a long time,
or hot mail and was synonymous for a long time,
and it's not the case anymore. Eventually, those things start
to the industry matures, and the original players that kind
of brought things to the forefront aren't necessarily the ones
that's going to be making all the juice in the
(10:19):
future of that thing. That's why the industry is important.
But being a trader and trying to guess winners and looters,
is that that could be a real problem.
Speaker 5 (10:26):
Oh yeah, I mean you're you're assuming that you have
some kind of an insight that the collective market doesn't have,
and what are the odds that you do?
Speaker 3 (10:34):
Yeah, who would have really have known for sure that
Amazon would have outperformed by dot com at one time
they were basically equals, you know, by dot com was
really a really popular site to go to buy stuff.
Speaker 5 (10:44):
Yeah, and as an individual company, look at Navidia. Navidio's
powered the indexes forward. If you're an investor and diversified,
you've participated in that already, you're participating in it as
we as we speak. But as an individual looking at
that one company, you know, I missed it personally, you know,
I didn't invest in the video as an individual company.
(11:07):
Now I've participated in it through my investments, but you know,
at the time, the only thing I knew about in
the video was that they were making those graphics cards
for bitcoin minding, right, which I didn't think made a
whole lot of sense to me, And I thought, well,
if something happens to bitcoin, then what's going to happen
to their earnings. Well, now we see that that was
(11:29):
a wrong assumption, you know.
Speaker 3 (11:32):
But which in itself was a crazy pivot because for
years in the video was known as the graph was
that their graphic cards were for gamers, you know, that
was like their big thing. It was like gamers. They
transitioned to bitcoin, and now they're transitioned to AI, right.
Speaker 4 (11:44):
And so.
Speaker 5 (11:46):
I missed that. How many people miss that? A lot
of people missed that if you were trying to pick
the individual stock. But if you're an investor and are diversified,
you've definitely participated in that, and you don't have to
guess what the right company is going to be. You know,
you're not necessarily betting on the right horse. You're just
betting on the system and the process of innovation and
(12:10):
progress that happens over time when you invest in the market.
Speaker 3 (12:13):
Is there any kind of and again, when the market
is when you're talking broadly, interruptions shouldn't affect you too
much as a as an investor for your retirement, but
as assuming that the government starts to reopen with the
deal that's been made, and then, you know, we haven't
had official government data for a long time. You've seen
some unofficial stuff that's come together. Is there any like
(12:35):
sort of a bracing period that you should be aware
of when data starts flooding in just in case, Hey,
it's going to show unemployments really bad, or inflation's a
lot hotter than we thought, or whatever it might be,
or do you just have to kind of ride that
kind of thing out.
Speaker 5 (12:47):
I suspect that we have generally know what's going on
from other sources, you know, people that with the boots
on the ground, the companies that are that are you know,
doing the payroll services, the company they report data that
we have that's going to be in the ballpark. You know,
(13:08):
the job's market is definitely slowing, but still growing. You know,
we may see some unemployment taking up slightly, but it's
it's still a relatively healthy jobs market close to the
I think thirty five forty percent of the job losses
have have been in the government sector. So you know,
(13:33):
it's it's scrashing the surface on the size of government.
But but there have been job losses in the government
sector more so than than any other sector. Right, it
would take that, you know, good or bad what it is? Yeah, yeah,
it is right, But but it it that tends to
be less economic sensitive job losses than other types of
(13:57):
companies who are looking at their their future earnings, future
business prospects and pulling back on the reins. And over
time too, you know, at some point we may even
see impacts of some of this AI efficiency affecting the
jobs market to some degree.
Speaker 3 (14:14):
Now I read some stuff this weekend where there's some
unofficial surveys being done of some companies that have on
boarded the AI in different places, and yeah, there's yeah,
you know, there's some graphs and things out there that
show that there is a little bit of a softening
because of AI in some industries right.
Speaker 5 (14:27):
Right, which there again, it depends on what hat you're wearing.
You know, if you're the person that lost that job,
that is a it's a bad thing. If you're a
long term investor in the profitability of companies like we
talk about on the show, you will benefit from that efficiency.
And then the idea is the labor the capital. Labor
(14:51):
capital can be redeployed somewhere else in another efficient manner,
and that's how the economy grows. And so, you know it,
it's easy to look at things and just pick that
negative out. But if the market is and not just
the stock market, but just people voting with their feet
(15:12):
and saying, Okay, this is more efficient, I'm going to
do it this way, you know, that's going to be
the winner. You know, that's how that's how these things
are decided, and that's how we allocate our resources in
our capital. I mean that's what the market does. That's
why you know, you see the United States occasionally have
(15:32):
these hiccups where there's an economic downturn. That's that's bad.
Two thousand and eight, for instance, was the last you know,
non COVID issue. That was a pretty deep thing. But
we bounce back pretty quick. Why did we do that
because because we're relatively efficient at at voting with our
feet and making adjustments. And some other types of economies
(15:58):
I'm thinking China for instance, you know, they're not as
efficient of allocating those resources because one person is largely
deciding how they get allocated. We have millions of people
every day voting with their feet deciding how capital gets allocated,
which sometimes can seem inefficient, but actually it over time,
(16:21):
is an extremely efficient way of allocating resources.
Speaker 3 (16:24):
The I guess the I don't know if it's been
a secret from everyone, but one of the things I
guess this weekend, big story that was breaking across some
of the news in financial sectors as far as China goes,
is it hasn't necessarily been hiding, but it hasn't been
frontline news that China's in the middle of a depreciation.
They have the cost of everything is falling. The goods
(16:44):
are falling. I mean, and people here might be like, oh,
what did China do right? They're the groceries are more
affordable now. No, no, no, this is not good news.
China's in a lot of trouble right now when it
comes to these things. And whatever you think about COVID,
the recovery, whatever else, we did it better than that,
you know, in a lot of other countries, you know,
(17:06):
they're in a lot of trouble, you know, And so
you're right, it seems like that the way that they they've.
Speaker 4 (17:10):
Invested in.
Speaker 5 (17:13):
Unproductive infrastructure, they've invested in product product production facilities to
produce goods and services well beyond what the market will bear.
You know, a company will you know, they're not going
to do that, and if they do, they don't last,
(17:33):
you know, and the problem corrects itself. There's no there
has been no correction in an economy like that that
is commanded by essentially one person. Those those abnormal things,
they fester and they grow and they become large problems.
Speaker 6 (17:54):
You know.
Speaker 5 (17:55):
Usually, you know, looking across our economy, usually a problem
gets snuffed out before it becomes a major problem because
of the way you know, we're structured.
Speaker 3 (18:10):
China is also apparently from the government side of things,
and of course that works a little differently than here.
But sometimes you have to be aware of flags going
through some processes to limit media access. They're changing their
media access rules and things that media could get in
contact with.
Speaker 5 (18:25):
Now familiar beats, yes, And you know, with a system
like China, it can sometimes seem like it's superior because
one person can make the decision. It's clean. You know,
you say, well, we're going to do this and put
all the capital behind it, and by golly, they can
(18:45):
maybe do things faster because there's not this process to
check some balances along the way. And so when things
go good like they have in the last twenty years
fifteen years in China, you know it's like, wow, that's
a better system. Well, you know, history shows that that
(19:06):
it is not a better system than millions of people
having to vote with their feet and their money. And
you know, there's really never been a time over a
long period of time that that that is superior. That
doesn't mean we're flawless and the way we we operate
and there's not flaws in the systems and flaws and capitalism.
(19:27):
There's no perfect sence. Best is not perfect, right, right,
but but it's kind of interesting to see, and I
think that does play in a part why you know,
you get those questions like why should I invest if
the market is at high? Well, because of that right,
because of that persistence to to improve over incrementally over time.
Speaker 3 (19:51):
It's great stuff with jeenre debt for Fourth Avenue Financial.
Encourage you to give us a call if you have
any questions this morning, or well, don't give John a call.
You can tap into the conversation. Threes are a four
three four five fifty fifty eight threes zero four three
four five fifty to fifty eight. You can text three
zero four non three five five zeros err eight three
zero four non three five five.
Speaker 4 (20:05):
Zero zero eight. Let's do this. Let's go and take
our break.
Speaker 3 (20:07):
When we come back, we have plenty more do we
want to talk about more about the market and investment
for your retirement today and also any questions that you have.
You can control the conversation again three zero four three
four five fifty fifty eight text three zer four non,
three five five zeros or eight. You can find out
more informational online. Fourth Avenue Financial dot Com. You spell
out the whole thing Fourth Avenue Financial dot Com. You
can also go to Facebook and like the page over
there and be kept up to date one events via
(20:29):
Facebook as well. We'll take a break and be backgraft
to this. I'm Del Cooper. You're listening to retire Right Radio,
but John Bredet from Fourth Avenue Financial on five eight
WCHS the Voice of Charleston.
Speaker 7 (20:38):
Retire Right Radio a sponsored by Fourth Avenue Financial, which
is solely responsible for its content. Security is offered through
jw CL Financial member fen 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 Burdet should not be construed as specific investment, legal,
or tax advice. All economic and performance information is historical
(21:00):
and not indicative of future results. Investing may involve risk
of loss of principle. Any tax advice on this show
is not intended to be used by any person for
the purpose of avoiding US federal or state tax pitalties
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
(21:20):
is not providing legal or tax advice. Nothing should be
construed as solicitation of an offer to buy securities. This
program is sponsored before the Avenue Financial, which is solely
responsible for its content.
Speaker 8 (21:31):
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Speaker 9 (22:00):
Hey guys, it's Jim Strawn for Banker's Life and it's
that time of year. Time to review your prescription drug
and Medicare plan. Most folks find choosing the right Medicare
plan very very confusing. Our Banker's Life team of financial
professionals can help you navigate and choose the right plan
this annual election period.
Speaker 4 (22:18):
So don't wait and don't worry.
Speaker 5 (22:19):
Contact us we can help three.
Speaker 9 (22:22):
Zero four seven five seven four one three four or
Dennis dot Harmison at Banker's Life dot com.
Speaker 10 (22:30):
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food insecure in twenty twenty two. West Virginia is no different. Hi,
I'm Jason, President and CEO of Union Mission Ministries. For
one hundred and thirteen years, Union Mission has focused on
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(22:51):
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Speaker 6 (23:00):
This is retire Right Radio with John Burdett from Fourth
Avenue Financial taking your calls at three oh four three
four five fifty eight fifty eight or texts on three
oh four nine tree five fifty oh eight.
Speaker 3 (23:29):
You're listening to or tirry Right Radio one five ATWHS
the Voice of Charles and I'm Del Cooper. Thanks for
tuning in on this Monday morning. John Burdett is here
with us from fourth Avenue financially, You're welcome to give
us a call this morning if you have any questions
about your retirement future, how you can retire right three
zero four three four five fifty eight fifty eight you
can text three zero four non three five five zeros
er eight three zero four non three five five zero
zero eight. A couple of things I saw a little
(23:50):
bit in the news being floated around this weekend, and uh,
this isn't something that is any sort of official policy yet,
but we can talk about this in context of things
that do exist. I saw that there was a suggestion
floated around for possibly having like a fifty year mortgage
out there, you know, because it would reduce your payments,
you know. I mean, if you expand the amount that
(24:12):
you're paying over, then it makes sense that it reduces
your payments. The problem is there's interest that pays into that.
And you're talking about average adding almost a whole other
loan time frame.
Speaker 5 (24:21):
Yeah, buying the house three times instead of twice.
Speaker 4 (24:23):
Yeah, And I was doing some and I know this.
Speaker 3 (24:26):
I know this these numbers a little bit because I
was in the mortgage industry for a while, so I
know what any five year increment will do to the
amount of interest that you pay back, and it's absolutely ridiculous.
So imagine adding twenty years to what you're already doing,
and it's pretty I don't know about the how much
sense that that makes, but there are products that actually
exist today that are similar to that in the auto industry,
for example, and things like that. And I'm just thinking,
(24:47):
like the last time I went to go finance a car,
and I tried. Believe me, I went fifteen years without
financing a car. I'll run my cars into the ground
if I can keep from it. But the last time
I went to go finance a car I had, I
was shocked that they were offering me. I remember if
it was six or seven years. It was like, I thought,
five was the mix that you can go back when
I was the last time that i'd financed the car,
five was the mix I could go. I financed for
three and paid it off in two and a half.
(25:11):
This one, like the last time that I got it
they were offering me is like we were payment shopping
a little bit at first, and then I started saying, well,
this is a decent payment, Uh, what's the terms? And
then you find out the terms are like seventy two months.
I'm like, I don't want a seventy two month car?
Are you kidding me? And so some of this stuff
can be I mean, it sounds good on the front
end because yeah, you can save a little money and
stuff like that, but man, that interest really pals up.
Speaker 5 (25:33):
Yeah, And it's important to realize what the true cost
of something is. You know, if you buy a car
for thirty thousand dollars, you know, that's what you need
to look at. That's what your you know, that's what
the cost of the car is. Those monthly payments added up,
that's the cost of the loan. That because you can't
afford to buy the car up front. And so I
(25:54):
think what would happen just thinking this through, if you
have fifty year mortgages instead of thirty or fifteen, it
would actually work against affordability in the long run because
it would inflate the price of housing.
Speaker 4 (26:11):
Because some manly people could pay. Yeah, right, I see
what you're saying.
Speaker 5 (26:13):
Right, you know, anytime you introduce more money into a system,
that's that's what's going to happen. And so people are like, well,
houses are so expensive now? Well, because houses are so expensive. Now,
that is the market saying, hey, houses are expensive, that
should over time put some sort of a governor on
(26:36):
that on that. Now, if you go to a fifty
year mortgage and throw that into the mix, that relieves
that market pressure of that monthly payment and allows it,
that allows the price to be extended. That's the way
I would see that. You know, you can't escape from
the price of something. You know you can finance it,
but you still have to pay it and pay it
(26:56):
with interest. So your best you know, not looking at
what your payment is. You know, when you go into
a car dealership, everybody's done this and they ask you
what would you like your payment to be? Don't answer
that question because the cost of the car is the
number of the price of the of the of the
vehicle that they're going to sell it to you. If
(27:17):
you were writing a check. That's the important thing. All
the financing can be worked out after you determine that
number if you need financing. But you know, it's easy
to work backwards and say, well, I want my payment
to be five hundred dollars a month.
Speaker 4 (27:31):
Well, then the.
Speaker 5 (27:32):
Price of the car can be almost anything, depending on
how you financing at the end.
Speaker 3 (27:38):
As an example using a possible homeworgage. I was doing
some math during the break and one of the things
I came up with, For example, if say you wanted
to get your home for under fifteen hundred dollars a month,
that's all that.
Speaker 4 (27:49):
You asked for.
Speaker 3 (27:49):
Well, at fifty years, at a six point seventy five
interest rate, you can have a two hundred fifty thousand
dollars home at This is just principal an interest, not
with taxes in insurance. At fourteen hundred and fifty six
dollars a month you met the bill, you got an
or fifteen hundred dollars a month. That same thirty year
mortgage at today's rates would be a little over fifteen hundred.
It would be about five hundred or fifteen hundred and
fifty dollars a month. So that's too much money. However,
the difference in the amount that you're paying back in
(28:10):
that over a thirty year period under the thirty year mortgage,
that you would be paying back about five hundred and
fifty seven thousand dollars. So interest really gets you there
a little bit, so twice as much, a little bit
more than twice much. In what you borrowed to begin with.
Over fifty years, that number balloons to eight hundred and
seventy three thousand dollars three hundred thousand dollars more in
interest that you're paying back over that time only in
one hundred dollars a month savings.
Speaker 4 (28:32):
Yeah, so a little bit backwards you wish for.
Speaker 3 (28:36):
Yeah, that's a look and this goes for a lot
of things on when people look at the cost of
something upfront instead of like what the actual Sometimes people
say costs versus value, But in a lot of cases
when it comes to finances, you really have to know
what it is. In this case, and what you would
advise somebody to do is see what it is you
could actually afford using normal financial tools, and then you
(28:57):
make it so your finances matches that you can put
money to work for you, not try to game the
system so you're less than ideal finances could can work
for you.
Speaker 4 (29:07):
That's just not the smart way that payback.
Speaker 5 (29:09):
You know, that extra eight hundred thousand could have been
working for you.
Speaker 4 (29:13):
That's a great point, right, you know. That is where.
Speaker 5 (29:17):
It all comes back to the same rules we always
talk about. You know, earn money and live below your
means is that is what this is saying. If you
live below your means. In other words, yes, the bank
will alan me this money, but do I need to
really be what is the ultimate.
Speaker 4 (29:36):
Cost of that?
Speaker 5 (29:37):
Well, the cost of that is now you have eight
hundred thousand dollars that you weren't able to invest productivity
in productive investments, which maybe two or three or four
million dollars of your retirement money. So you know, you've
bought a fifty thousand dollars bigger house. Yes, you might
(29:58):
enjoy that now, but you're going to be enjoying that
house for a long long time time and not ever
be being able to, you know, move beyond that. You're
going to have to keep working to keep paying that payment.
Speaker 4 (30:15):
To that point.
Speaker 3 (30:16):
What this reminds me of a little bit when I
was in the mortgage industry working on the broker side
of things. Thirty your mortgages even then were considered Yeah,
you saw some people hold note for thirty years, but
more often than not, thirty years was already people that
were looking to lower their rate as much as possible,
with the expectation, at least when the market was good
and rates were pretty decent they'd refine five years, or
they had refined ten years, try and or we're only
(30:39):
going to be in this house for so long or whatever.
Speaker 5 (30:40):
It might be right, right, and you know that that's
I mean, there are all kinds of tools you can
use depending on your situation.
Speaker 3 (30:48):
The problem with that, of course, when you refine, that's cost.
That's cost off the top, that's not even interest costs.
You're paying money to do the refi.
Speaker 5 (30:55):
Right, right, and and there are some periods of time
where you know, in the in the late seventies, you're
a handful of years ago where prices escalated quickly. You know,
those type of deals and those financing deals. Certainly, it's
just like timing the market. I mean, it's possible that
some things make sense in certain environments. Yeah, well, but overall,
(31:20):
you know, there's no free lunch. You have to if
you're consuming that home by living in it, you have
to pay for it.
Speaker 4 (31:26):
Eventually.
Speaker 3 (31:26):
There was a narrow sliver of time in the late
nineties in the early two thousands, and that's when I
was in the industry where there were people with sterling
credits seven hundred credit scores that had interest rates in
eleven or twelve percents because they had got those rates
ten or twelve years before. They were about fifteen years
into a thirty year mortgaging. You could call virtually anybody
and say, I could give you your same fifteen year
mortgage remaining, cut your interest rate by two thirds, give
(31:49):
you fifty thousand dollars cash out, and your payment still
goes down. Would you like to sign right? And everybody
said yes. I mean, it was impossible for people not
to sign on that deal. But those that environment does
not existingmore, it's because it's already played out.
Speaker 5 (32:03):
No, and it's it's the same thing as trying to
time the stock market. You know, you can always look
and try, well, I can game it. I think this
is going to happen, that's going to have You know,
that requires clairvoyance that none of us have, and to
to be able to think that you can time the
(32:23):
real estate market, the stock market, any any market. Because
you're one individual out of millions that are that are
making those decisions. You know, just because you do something,
you're not influencing the market. You know what what you
think is going to happen may or may not happen,
but you have no control over that and so that's
a game that that in whether it be real estate
(32:46):
or or or the market, it's it's not something you
can consistently win at.
Speaker 3 (32:51):
And broadly is the things that we talked about this
morning with jarberdet for Fourth Avenue financial are things that
that are pitfalls that folks may observe try to avoid
things along those lines. And reason we talk about all
of these things sort of as topics is these are
also the things that John helps with. So any of
these things that sound a little bit worrisome or man,
there are a lot of different financial options out there.
I almost thought about taking a reverse mortgage one whatever
(33:13):
it might be, and maybe you need a little bit
of help counseling through that. Not everybody understands exactly what
the financial ramifications are going to be, especially fifteen or
twenty years down the road, and what's going to mean
for your retirement, how that interest compounds and everything else.
That's why it makes sense to reach out to somebody
that can help you do your financial planning and to
make sure that you're making solvent decisions. You know that
you're not being sort of marketed into making a decision
(33:34):
that's not going to be best for you, and that's
why you should give John a call. You can find
out more about Fourth Avenue Financial online. It's fourth Avenue
Financial dot com. Fourth Avenue Financial dot Com. They're located
at one seventy Court Street, Downtown Charleston. Three zero four
seven four six seven non seven seven three zero four
seven four six seven nine seven seven.
Speaker 4 (33:49):
And it just so happens.
Speaker 3 (33:50):
Although John will tell you anytime that just because you're
not the end of the year is not necessarily the
best time to make major changes and things like that.
Sometimes it's some one people brains. You know, you're getting
your tax stuff together, you're getting your documents together, open
enrollment for my insurances right now. A lot of people
are probably going through that right now. So you're kind
of thinking about these things anyway, So it may not
(34:10):
be a bad opportunity to pick up the phone and
see what you can do better for your retirement future.
Speaker 5 (34:14):
Yeah, it's a good time, right before things get real
busy for the holidays, you know, take a little time
out for yourself and come on in and let's take
a look. It doesn't cost anything for that first consultation,
and it's a pretty pretty easy left.
Speaker 3 (34:31):
Maybe this is something we could get into a little
bit deeper as we get closer to the holiday season.
But what we are in the holiday season, I guess
there's no there's no denying that anymore. But as we
get closer to actually Christmas time and the gifts and
everything like that, every year there's somebody comes out with
an article with how much debt we go into over Christmas?
You know, people spend credit card debt and things along
those lines. I used to do that when I was younger.
(34:53):
I've gotten, I hope better in my adult age that
I only buy what I can afford. And I would
never go into debt to buy gifts for people because
that's counterproductive, you know, but that's not the case for everyone.
And if you have a big family, you know you're
looking to buy for your kids. What are some tip
I mean, you just want to save, right, you want
to only spend what you can, try to do it
in cash. Make smart decisions.
Speaker 5 (35:14):
Yeah, don't don't don't borrow to give gifts. That's a
great uh, a great one. And you know, think about
you want to give something to your loved one. You
know you can do things meaningful that don't cost a
lot of money doesn't mean you're not giving a gift.
It just might not be the type of gift that
(35:34):
you maybe initially think of. Uh, think about things like that,
and and also think about that level one that that
you care about that you want to give that gift to.
Would they want to see you in a financial mess?
Probably not, you know, so think think about those things
as you go, as you go shopping and uh. And
(35:55):
if you've saved and you've set aside money and it's
within your budget and you want to give something to somebody,
go do it. But but if if not, get the
financial house in order, so next year and the year
after and the year after you'll be able to do
that with confidence.
Speaker 3 (36:10):
Yeah, you just want to make sure you're making right decisions.
Don't spend yourself into some sort of despair because because
you have too big of a heart. I mean, you
find people that want to give, give, give, and they
don't have the financial means to give. And you know,
sometimes maybe there's something else you can do for someone
that that's not necessarily reaching so deep into the financial misery,
because that unfortunately, as great as Christmas is and as
(36:32):
great as our as our holidays are, sometimes folks get
that a little bit upside down. I think it's the
family first, not the.
Speaker 4 (36:37):
Gift of time. Time is the best gift you could give.
Speaker 3 (36:40):
No, Hey, that's very true. Spend some time with your
loved ones and that will pay off in dividends. Well, John,
thank you so much for your time today. Hey, that
was almost a pun for the show too. Thanks so
much for the time today, and we'll see you back
here next week. And with all things that are going
on with the market, it should be an interesting week.
Maybe the government shut down ends, maybe we start getting
some federal days on some of uh, you know, employment
(37:02):
and inflation and stuff like that.
Speaker 4 (37:03):
So we'll have a spirited show next week. Sounds good.
Sounds good.
Speaker 3 (37:06):
That's John Badet with Fourth Avenue Financial. He can help
you out Fourth Avenue Financial dot Com. One seventy Court Street,
Downtown Charleston. Seven four six seven nine seven seven three
zero four seven four six seven nine seven seven seven
four six seven nine seven seven.
Speaker 4 (37:18):
That's gonna do it for us.
Speaker 3 (37:19):
Coming up next, Dave Allan's gonna be here with five
eighty Live talk line will come this afternoon, followed by
midday and then I'll be back this afternoon at three
oh six with Dave Weekly on Hotline on this Monday.
Speaker 4 (37:29):
Have a great day. Everyone. Listening to five ad w
CCHS we are your voice of Charleston.
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