1
00:00:00,160 --> 00:00:04,080
Well, we're paying the price for
all that free money that happened over the

2
00:00:04,200 --> 00:00:07,960
last decade, and now things are
starting to catch up. It's like the

3
00:00:08,000 --> 00:00:11,560
tighter you pull a rubber band,
the faster and harder's going to snap back.

4
00:00:11,679 --> 00:00:15,640
And then when we look at all
the geopolitical situations, especially in Israel

5
00:00:15,720 --> 00:00:19,640
right now, them being so close
to the fuel sources, the oil sources

6
00:00:19,960 --> 00:00:24,800
of the ramifications and ripples to the
economy. With Ukraine that being such a

7
00:00:24,800 --> 00:00:29,879
big energy source, so energy is
big plus with Ukraine, and they're grain

8
00:00:30,079 --> 00:00:33,920
that has ripples effects as well,
So we're not holding a good card hand

9
00:00:33,960 --> 00:00:39,159
Right now, you're listening to Kerrie
Let's's Financial Survival Network where you get valuable

10
00:00:39,159 --> 00:00:44,600
information you just can't find anywhere else
to thrive in today's trying times. You

11
00:00:44,799 --> 00:00:51,320
need the Financial Survival Network now more
than ever. Go to Financial Survivalnetwork dot

12
00:00:51,359 --> 00:00:58,119
com and get your free newsletter and
gift. Financial Survival Network now more than

13
00:00:58,159 --> 00:01:06,000
ever, And welcome. You are
listening to watching the Financial Survival Network.

14
00:01:06,079 --> 00:01:10,319
I'm your host, Carrie Lutz,
and hey it's Thursday, October twelfth.

15
00:01:10,480 --> 00:01:15,480
We just got the PPI numbers yesterday
and the CPI numbers. Today, we're

16
00:01:15,519 --> 00:01:19,400
talking to Brad Williams to get his
take on it, and you can find

17
00:01:19,400 --> 00:01:23,599
brad site. Ask Bradwilliams dot com. If you got a quick inner comment

18
00:01:23,959 --> 00:01:27,079
what you think? Do you think
inflation's going higher? Lower? Sideways?

19
00:01:27,640 --> 00:01:33,400
Just send us an email with your
thoughts and anything else. Klatcarrie Lutz dot

20
00:01:33,439 --> 00:01:36,480
com. Hey Brad, great to
have you back on the show. So

21
00:01:37,000 --> 00:01:41,000
we get the CPI number. What's
your take? Well, we're paying the

22
00:01:41,040 --> 00:01:45,200
price for all that free money that
happened over the last decade, and now

23
00:01:45,200 --> 00:01:48,560
things are starting to catch up.
It's like the tighter you pull a rubber

24
00:01:48,599 --> 00:01:51,920
band, faster and harder's going to
snap back. And then when we look

25
00:01:51,959 --> 00:01:56,560
at all the geopolitical situations, especially
in Israel right now, them being so

26
00:01:56,680 --> 00:02:01,319
close to the fuel sources, the
oil sources ramifications or ripples to the economy.

27
00:02:01,719 --> 00:02:07,280
With Ukraine that being such a big
energy source, so energy is big

28
00:02:07,400 --> 00:02:10,919
plus with Ukraine, and they're grain
that has ripples effects as well. So

29
00:02:12,039 --> 00:02:14,960
we're not holding a good card hand
right now, No we are not.

30
00:02:15,319 --> 00:02:20,080
So what is the solution for an
investor? How do you protect yourself against

31
00:02:20,199 --> 00:02:23,159
what's happening here? Well, I
think you know, if you're very young,

32
00:02:23,240 --> 00:02:29,120
this is an opportunity because as prices
drop, you're buying it a discount.

33
00:02:29,159 --> 00:02:31,400
The problem is ideal primarily with the
retirees, and they don't have that

34
00:02:31,599 --> 00:02:38,000
time to make up when they take
that risk. So looking at income sources,

35
00:02:38,199 --> 00:02:45,400
looking at alternative sources of investment that
do good in times of high inflation,

36
00:02:45,719 --> 00:02:50,560
that's key. Okay, So what
first, Just let's review the numbers,

37
00:02:50,639 --> 00:02:53,919
because many of you out there might
not have seen them, might be

38
00:02:53,639 --> 00:03:00,000
unsure of what it is. What
did we see here? We saw significant

39
00:03:00,080 --> 00:03:05,240
get rise this month in the in
the core CPI and energy and food were

40
00:03:05,560 --> 00:03:10,039
two of the big drivers there.
And now as we're seeing the inflation,

41
00:03:10,319 --> 00:03:15,199
then we're going to have the issue
of the Federal Reserve raising interest rates and

42
00:03:15,240 --> 00:03:22,560
then that crowding out uh individual buyers
from the from the financial markets because the

43
00:03:22,560 --> 00:03:24,759
government's going to be need more money
to pay interest on the debt. We're

44
00:03:24,800 --> 00:03:30,199
looking at a two possibly a two
point two trillion dollar deficit. Jeez,

45
00:03:30,919 --> 00:03:34,439
that's like that's a lot of money, isn't it. Well, you know,

46
00:03:34,520 --> 00:03:38,240
Everett Dirkson said many years ago,
a billionaire a billion there pretty soon

47
00:03:38,240 --> 00:03:40,879
you got some real money. Well, I think we're long past average numbers.

48
00:03:42,520 --> 00:03:45,319
Yeah, I think we're at a
trillion here and a trillion there and

49
00:03:45,360 --> 00:03:49,439
pretty so you're looking at some real
money, right, that's correct. And

50
00:03:49,479 --> 00:03:53,560
then when when you look at you
know, the things happening at the border,

51
00:03:54,080 --> 00:03:59,439
Carrie, we just investors who are
at or near retirement need to play

52
00:03:59,439 --> 00:04:03,000
it close to the vest and they
can't play by the same rules that got

53
00:04:03,039 --> 00:04:08,800
them to the game, right and
those rules? What were those rules and

54
00:04:08,840 --> 00:04:11,759
why don't they apply now? Brad
Well, when you have you know,

55
00:04:11,800 --> 00:04:16,600
your typical seventy thirty stock bond portfolio, Well, if you don't own the

56
00:04:16,639 --> 00:04:20,800
individual bonds and your bonds are in
mutual funds, you've pretty much gotten cream.

57
00:04:21,360 --> 00:04:25,399
You know. If you own the
bonds yourself, which we do for

58
00:04:25,480 --> 00:04:29,920
our clients as individual managed portfolios,
you at least have a maturity date where

59
00:04:29,920 --> 00:04:31,399
you get your money back. But
in a mutual fund you don't own the

60
00:04:31,439 --> 00:04:35,360
bond nor the interest rate, so
you get creamed in times like this,

61
00:04:36,000 --> 00:04:41,319
right, Yeah, you're getting killed. Right, So you want to stay

62
00:04:41,319 --> 00:04:45,319
away from bonds or do we go
to short term bonds? Well, shorter

63
00:04:45,480 --> 00:04:48,279
term or you know, if you're
buying bonds for the income that you're going

64
00:04:48,360 --> 00:04:51,759
to get from it, and you're
satisfied with that income, then you just

65
00:04:51,920 --> 00:04:56,160
ride out the storm and the fluctuations. It'd be the same as if you

66
00:04:56,240 --> 00:05:00,680
bought a route property and maybe the
neighborhood went through some changes positive been negative.

67
00:05:00,920 --> 00:05:03,360
As long as you're getting that rent
and you're getting money on your money,

68
00:05:03,399 --> 00:05:06,560
you're good. You know it'll mentually
come back. But you know it's

69
00:05:06,600 --> 00:05:12,680
that short term fluctuations that you've got
to avoid. Yeah, that can definitely

70
00:05:12,759 --> 00:05:16,839
hurt. Hey, so the short
term fluctuations, but you know it's a

71
00:05:16,879 --> 00:05:20,360
lot trickier than that. I mean, what are you supposed to do here

72
00:05:20,800 --> 00:05:27,439
when inflation's going up? Uh,
you know, the economy is looking real

73
00:05:27,560 --> 00:05:32,000
bad. How can you really protect
yourself? Well, Having the portion of

74
00:05:32,040 --> 00:05:36,600
your assets obviously in precious metals is
one edge, but you've always got to

75
00:05:36,600 --> 00:05:40,839
look at those precious metals is what
they really are. Their edge. They're

76
00:05:40,839 --> 00:05:44,000
not an investment. If you want
to make money on the metals, you

77
00:05:44,040 --> 00:05:47,040
buy the paper and trade the futures
and options. But if you're wanting to

78
00:05:47,079 --> 00:05:51,160
hold value on your portfolio, then
you own the hard metals to do that,

79
00:05:51,759 --> 00:05:55,639
but you don't want to. You
don't want to go out and cash

80
00:05:55,680 --> 00:06:00,319
out your IRA and put it all
in gold. But and you know,

81
00:06:00,399 --> 00:06:04,600
having some of that after tax money
sitting around as a hedge will help you

82
00:06:05,000 --> 00:06:10,959
during times like this, and then
looking at more conservative income oriented investments is

83
00:06:11,000 --> 00:06:16,839
good. Okay, So all right, and what age is are you that

84
00:06:16,879 --> 00:06:21,600
this is particularly important? Well,
you might look at your life like climbing

85
00:06:21,680 --> 00:06:27,600
amount You've got the accumulation stage where
you're climbing, and the distribution stage where

86
00:06:27,600 --> 00:06:31,519
you're coming down the mountain. Most
deaths happen on the way down, so

87
00:06:31,959 --> 00:06:36,959
you've got and then in the interim
you've got that preservation stage where say when

88
00:06:38,000 --> 00:06:41,240
you're fifty five you need to start
de risking, and then once you hit

89
00:06:41,319 --> 00:06:46,639
sixty you're probably in that five year
preservation stage where you're shifting over to the

90
00:06:46,000 --> 00:06:49,800
to the income. I look at
things like a simple formula TR equals I

91
00:06:49,920 --> 00:06:56,160
plus G total returns equals income plus
growth. And so as you get into

92
00:06:56,199 --> 00:07:00,680
retirement and close to retirement, you're
shifting to the eye which is in and

93
00:07:00,720 --> 00:07:04,600
away from G, which is growth
because G can turn into L, which

94
00:07:04,680 --> 00:07:09,439
is lost and So what you don't
want is what happened to a lot of

95
00:07:09,439 --> 00:07:13,160
people in two thousand and two thousand
and three, in two thousand and seven,

96
00:07:13,240 --> 00:07:15,720
two thousand and nine, where they
had to delay their retirement because there

97
00:07:15,759 --> 00:07:20,199
was a massive market drawback. That's
kind of a drig. So are you

98
00:07:20,279 --> 00:07:26,959
telling people to keep working longer,
to keep finding new ways to get cash

99
00:07:27,000 --> 00:07:33,319
flow besides from their investments. If
you like your work and your health is

100
00:07:34,040 --> 00:07:38,879
you know, allowing you to do
that, probably working a little longer than

101
00:07:38,920 --> 00:07:43,519
you expected in this environment might be
a good idea because then you're still putting

102
00:07:43,600 --> 00:07:46,720
money in your in your reserves and
not taking it out even when you take

103
00:07:46,759 --> 00:07:50,240
it out. I always use the
equation of you want to live off the

104
00:07:50,279 --> 00:07:56,000
eggs and not the chicken. So
the dividends, the interest that's what you

105
00:07:56,040 --> 00:07:59,800
want to live in. You might
want to look at a guaranteed sources with

106
00:08:00,160 --> 00:08:05,839
the interest rates where they are.
Certain annuities are very popular now because of

107
00:08:05,240 --> 00:08:11,839
the inherent guarantees they have. So
sitting down with an advisor who really understands

108
00:08:11,399 --> 00:08:16,519
the eye phase of your life is
important, Yes, very important. All

109
00:08:16,639 --> 00:08:22,199
right, So your clients, uh, what do you Obviously you review them

110
00:08:22,240 --> 00:08:28,160
regularly, and I assume you're giving
advice along these lines. Yes, I

111
00:08:28,199 --> 00:08:31,160
am, and and a lot of
them are already there. In fact,

112
00:08:31,399 --> 00:08:33,799
Carrie, when I go when we
go through times like this, I don't

113
00:08:33,799 --> 00:08:39,240
get a tremendous amount of panic phone
calls because they're ready for They understand the

114
00:08:39,279 --> 00:08:43,639
implications of the economy and that The
key is is you want to be able

115
00:08:43,679 --> 00:08:46,840
to ride the way, and uh, you got to you got to be

116
00:08:46,919 --> 00:08:50,120
structured properly to do that, or
else you're you're going to you know,

117
00:08:50,200 --> 00:08:56,279
loose sleep Yep, I can totally
understand that, and yep, uh,

118
00:08:56,480 --> 00:09:01,960
well hey, so, uh you
know what with one more interest rate increase

119
00:09:03,000 --> 00:09:07,120
ahead, is that baked in the
cake already the markets and everything else.

120
00:09:07,720 --> 00:09:11,559
I think so, I think it
pretty much is where the anomaly will come

121
00:09:11,600 --> 00:09:16,879
as if they decide to go up
again because of geopolitical things. Right,

122
00:09:16,480 --> 00:09:20,919
you know, typically by the time
the interest rate happens, it's already,

123
00:09:20,039 --> 00:09:24,039
like you say, baked in the
cake. People have already anticipated then.

124
00:09:24,440 --> 00:09:26,919
All right, well, hey,
thanks for giving us this update. Ask

125
00:09:28,039 --> 00:09:31,240
Bradwilliams dot com best place to find
you, Yes, and always appreciate coming

126
00:09:31,279 --> 00:09:35,679
on your show. Carry all right. Likewise, we love having you and

127
00:09:35,120 --> 00:09:37,759
be well. We'll talk to you
again soon. If you got a question

128
00:09:37,840 --> 00:09:41,519
for Brad myself, kl at Kerrie
luds dot com. That's the place to

129
00:09:41,519 --> 00:09:46,120
send the email and we'll be having
you back on next month, Brad.

130
00:09:46,360 --> 00:09:50,360
See what they do then, Will
they raise or will they cut? You

131
00:09:50,399 --> 00:09:52,240
know, I think a lot of
it's going to have to do with the

132
00:09:52,320 --> 00:09:54,960
geopolitical situation here, isn't it?
Yes, it is, yeah, right

133
00:09:56,000 --> 00:10:00,000
now, it's the state of flux
is probably a good term. All right,

134
00:10:00,240 --> 00:10:01,720
state of flux it is. We'll
talk to you soon, Brad.

135
00:10:01,759 --> 00:10:05,879
Thanks, Hi, Kerrie, thank
you, thanks for listening to Carrie Letz's

136
00:10:05,879 --> 00:10:11,519
Financial Survival Network, your solution to
today's trying times. For the latest,

137
00:10:11,600 --> 00:10:18,279
go to Financial Survivalnetwork dot com.
Financial Survival Network now more than ever,