WEBVTT 1 00:00:03.279 --> 00:00:07.080 Welcome to Financial Issues, where we help you steward faithfully 2 00:00:07.280 --> 00:00:10.919 by honoring God with your investments. Now listen in as 3 00:00:10.919 --> 00:00:13.720 we give you the practical tools and advice you need 4 00:00:14.000 --> 00:00:16.559 to become a biblically responsible investor. 5 00:00:22.320 --> 00:00:25.800 This is Financial Issues, where we help you defund darkness 6 00:00:25.839 --> 00:00:29.920 and fund the light by investing with biblical integrity. Today's show, folks, 7 00:00:30.320 --> 00:00:34.159 we're going to continue Friday's discussion with that midyear financial checkup. 8 00:00:34.240 --> 00:00:38.799 Let's talk through everyone's favorite specific topic in planning, taxes. 9 00:00:38.880 --> 00:00:40.479 I love them, you love them. We all love them, 10 00:00:40.520 --> 00:00:41.119 don't we guys. 11 00:00:41.399 --> 00:00:45.159 Also our Palace Defon Padfield, who we actually love Unlike taxes. 12 00:00:45.600 --> 00:00:49.240 At the Heritage Foundation, PEND a fascinating piece in the 13 00:00:49.280 --> 00:00:52.600 Daily Signal concerning corporate red flags. I wonder what those are. 14 00:00:52.640 --> 00:00:55.079 We'll talk shortly. Sephan's join us in about ten minutes. 15 00:00:55.119 --> 00:00:56.479 Excited to have him, excited to have all of you. 16 00:00:56.520 --> 00:00:58.719 I'm Sethi Dinsky, Sam Case in the control room, and 17 00:00:58.759 --> 00:01:02.359 of course your host with us, Mark Manila Marked morning, Good. 18 00:01:02.079 --> 00:01:05.719 Morning, Happy Monday, everyone, and thanks Seth for starting Monday 19 00:01:05.719 --> 00:01:07.840 off with such wonderful topic like tech. 20 00:01:08.000 --> 00:01:09.959 You're welcome, Mark, It's my play. I mean if I 21 00:01:09.959 --> 00:01:12.879 can do my civic Dude, you know it feels appropriate 22 00:01:12.959 --> 00:01:14.519 for a Monday, right, but today it. 23 00:01:14.480 --> 00:01:17.159 Almost feels so Yeah, you know what tags is on Monday, 24 00:01:17.200 --> 00:01:22.239 they do feel some and rainstorms and floods and tribulation. 25 00:01:22.439 --> 00:01:23.719 Yeah it all goes together. 26 00:01:23.959 --> 00:01:25.040 Yeah, it really does so. 27 00:01:25.120 --> 00:01:27.200 But guys, listen, before we get to that, let's start 28 00:01:27.200 --> 00:01:29.920 our show on a much more positive thing. Sam Our 29 00:01:30.000 --> 00:01:31.719 versu of the Week this week is Matthew six twenty four. 30 00:01:31.719 --> 00:01:32.359 Why don't you read that? 31 00:01:32.359 --> 00:01:32.680 For us? 32 00:01:32.760 --> 00:01:35.439 It sure is no one can serve two masters, for 33 00:01:35.560 --> 00:01:38.040 he will either hate the one and love the other, 34 00:01:38.359 --> 00:01:40.280 or else he will be loyal to the one and 35 00:01:40.359 --> 00:01:43.840 despise the other. You cannot serve God and mammon. 36 00:01:45.640 --> 00:01:47.519 You know, Mark, as we were talking about this in 37 00:01:47.560 --> 00:01:50.840 our our pre show discussion, it got me thinking that 38 00:01:51.000 --> 00:01:54.159 when we talk about not serving two masters, it's very 39 00:01:54.200 --> 00:01:55.519 easy to say, that's very easy. 40 00:01:55.280 --> 00:01:56.560 For me to say, yeah, you know what, I serve 41 00:01:56.640 --> 00:01:57.599 God totally. 42 00:01:58.239 --> 00:02:01.159 I don't serve money, yeah, I think, and I'm just 43 00:02:01.159 --> 00:02:02.760 being honest to try to. 44 00:02:02.719 --> 00:02:03.239 Serve the two. 45 00:02:03.319 --> 00:02:03.799 We sure do? 46 00:02:03.920 --> 00:02:04.519 We sure do? 47 00:02:04.599 --> 00:02:06.000 I mean how much energy? 48 00:02:06.079 --> 00:02:09.120 He says his portfolio again? 49 00:02:09.360 --> 00:02:11.840 Right, The only reason I'm not doing it is because 50 00:02:11.840 --> 00:02:12.759 I'm busy with the show. 51 00:02:12.840 --> 00:02:15.680 But I think one question that we got to ask ourselves, guys, 52 00:02:15.719 --> 00:02:16.879 is how much energy do we give? 53 00:02:16.919 --> 00:02:17.240 How much? 54 00:02:17.280 --> 00:02:19.560 How much thought do we give? You know, the things 55 00:02:19.599 --> 00:02:21.759 that we care about most, we will think about most. 56 00:02:21.960 --> 00:02:24.199 Am I thinking about my money as much as I'm 57 00:02:24.199 --> 00:02:26.759 thinking about God? Or perhaps even more so. And that 58 00:02:26.840 --> 00:02:28.560 starts to make us realize, you know what, maybe I 59 00:02:28.599 --> 00:02:31.560 am trying to serve two masters and we can't do that. 60 00:02:31.599 --> 00:02:33.879 I mean, Christ tells us you have to pick one, 61 00:02:34.000 --> 00:02:34.719 You have to pick one. 62 00:02:34.800 --> 00:02:35.919 Yeah, absolutely. 63 00:02:36.039 --> 00:02:38.719 You know what gets me about this verse that maybe 64 00:02:39.599 --> 00:02:42.719 it's a little strange, but what it doesn't say. It 65 00:02:42.759 --> 00:02:46.680 doesn't say you can't have God and mammon. It doesn't 66 00:02:46.719 --> 00:02:52.960 say you shouldn't pay attention to God and Mammon simultaneously. 67 00:02:53.080 --> 00:02:54.520 It just says you can't. 68 00:02:54.240 --> 00:02:55.800 Serve one over the other. 69 00:02:56.120 --> 00:02:59.240 And that's so very important because as Stuart, that's a 70 00:02:59.319 --> 00:03:03.719 perspective of stewardship. We serve God, and in serving God, 71 00:03:04.240 --> 00:03:08.439 we manage those assets. He's entrusted to us, but we 72 00:03:08.639 --> 00:03:13.159 manage him to his glory right for his purposes, right. 73 00:03:13.319 --> 00:03:15.960 I mean, that's the whole idea steward is someone who 74 00:03:16.080 --> 00:03:20.639 utilizes God's resources for God's purposes, to God's glory. And 75 00:03:20.680 --> 00:03:24.000 when you have that mindset, you're not serving two masters. 76 00:03:24.080 --> 00:03:27.120 Yet you may spend a lot of mind space, even 77 00:03:27.159 --> 00:03:30.879 a lot of tension, on managing those assets in a 78 00:03:30.919 --> 00:03:35.240 way that glorifies him and in a way that helps 79 00:03:35.280 --> 00:03:40.080 fulfill God's purposes. So it's a juggling act that feels like, 80 00:03:40.199 --> 00:03:41.960 but the reality is it comes. 81 00:03:41.719 --> 00:03:44.000 Down to who you doing this for. 82 00:03:44.879 --> 00:03:48.080 And when you look at it like that, you say, oh, well, 83 00:03:48.080 --> 00:03:50.520 there is gold, and I do have this gold that 84 00:03:50.599 --> 00:03:54.319 I have to deal with here, but I'm dealing with 85 00:03:54.400 --> 00:03:56.759 it for the one True God in a way that 86 00:03:56.879 --> 00:03:57.439 honors him. 87 00:03:57.759 --> 00:04:00.960 When you which one keeps everything in perspective? 88 00:04:01.199 --> 00:04:03.879 Yeah, yeah, well, said Mark, that's really good. 89 00:04:04.479 --> 00:04:06.919 Well, guys, let's get going now here on again a 90 00:04:07.000 --> 00:04:09.199 much less important topic. But like you said, Mark, we 91 00:04:09.280 --> 00:04:11.039 have to deal with the reality of this world, and 92 00:04:11.120 --> 00:04:13.919 so we have to talk about money and specifically taxes 93 00:04:14.000 --> 00:04:16.360 this mid year tax realignment. So if anyone was with 94 00:04:16.480 --> 00:04:18.480 us on Friday, we kind of did our mid year 95 00:04:18.680 --> 00:04:21.439 financial health checkup for all of your finances. But I 96 00:04:21.439 --> 00:04:24.000 think for many of us, the most important mid year 97 00:04:24.079 --> 00:04:28.240 checkup that will get with our finances is our tax implications. 98 00:04:28.240 --> 00:04:30.199 So Mark just kind of open the conversation there. 99 00:04:30.319 --> 00:04:32.839 What things should we consider as we begin tax planning 100 00:04:32.879 --> 00:04:33.600 for the end of the year. 101 00:04:34.279 --> 00:04:36.279 Well, the first thing is you don't have to make 102 00:04:36.319 --> 00:04:37.759 it a big deal. You know. 103 00:04:38.199 --> 00:04:42.480 The whole idea of a mid year review is to 104 00:04:42.560 --> 00:04:46.959 just make sure things are going right. Remember the simple. 105 00:04:46.680 --> 00:04:50.639 Question that is the lead the head the. 106 00:04:50.519 --> 00:04:53.959 Start of the mid year thing. What has changed if 107 00:04:54.000 --> 00:04:59.920 income with holding deductions, giving investments, I don't know, family circumstances, 108 00:05:02.040 --> 00:05:04.319 if they're all similar to what they were at the 109 00:05:04.399 --> 00:05:07.639 end of last year, when you did your plan last 110 00:05:07.720 --> 00:05:11.800 year or when you started putting things together, and then 111 00:05:11.920 --> 00:05:17.399 probably nothing's major has changed. There may be little to adjust, 112 00:05:17.480 --> 00:05:19.759 so it's not a big deal. So you start with 113 00:05:19.839 --> 00:05:22.680 what has changed, and then you move forward with that. 114 00:05:23.279 --> 00:05:25.839 One of the things is, even if nothing's changed in 115 00:05:25.879 --> 00:05:29.680 your life, Let's say your company didn't give you a raise, 116 00:05:30.319 --> 00:05:36.279 I'm sorry, And let's say that nothing's changed in relationships 117 00:05:36.360 --> 00:05:41.560 or anything else. No big bonuses, no huge capital gains 118 00:05:41.639 --> 00:05:44.199 or losses, that kind of stuff. We still have The 119 00:05:44.240 --> 00:05:49.160 twenty twenty six federal tax changes. So at the very least, 120 00:05:49.240 --> 00:05:51.240 what you want to do is go out and estimate 121 00:05:51.399 --> 00:05:54.519 your your taxes for the year, and you can do 122 00:05:54.600 --> 00:05:55.600 that at the I R S. 123 00:05:55.839 --> 00:05:57.160 I think at. 124 00:05:57.040 --> 00:06:02.399 IRS dot gov individuals there's a tax withholding estimator, so 125 00:06:02.480 --> 00:06:04.439 you could go in there and type in all the 126 00:06:04.439 --> 00:06:07.720 information about your you're you know you're gonna need a 127 00:06:07.759 --> 00:06:09.959 most recent pay stuff to do it. 128 00:06:10.120 --> 00:06:12.759 But once you do that, it'll tell you. 129 00:06:12.120 --> 00:06:14.319 Whether you're on track or not, or what you should 130 00:06:14.319 --> 00:06:16.839 be withholding in that kind of things. So this gives 131 00:06:16.879 --> 00:06:19.120 you time to adjust before the end of the year 132 00:06:19.199 --> 00:06:22.480 for traditional type. 133 00:06:22.240 --> 00:06:23.480 Moving forward things. 134 00:06:23.560 --> 00:06:27.319 So the goal really of the midiear with the taxes 135 00:06:27.439 --> 00:06:31.079 is no surprises. For example, maybe you sold a business. 136 00:06:31.399 --> 00:06:34.279 I know that sounds for some people it's like who 137 00:06:34.360 --> 00:06:35.319 owns businesses? 138 00:06:35.399 --> 00:06:37.600 Aren't they rich? Well, No, a lot of people own 139 00:06:37.680 --> 00:06:38.600 small businesses. 140 00:06:38.639 --> 00:06:42.600 I knew a guy who had who mowed lawns on 141 00:06:42.680 --> 00:06:46.160 the side and he had like forty different households and 142 00:06:46.199 --> 00:06:48.439 he sold that business to another. 143 00:06:48.160 --> 00:06:50.000 Guy who did it because he was getting older and 144 00:06:50.040 --> 00:06:51.000 wanted to get out of it. 145 00:06:51.360 --> 00:06:54.639 So he had a lot of he had this lump 146 00:06:54.720 --> 00:06:59.199 sum come in that now he needed the report and 147 00:06:59.279 --> 00:07:02.959 take advantage are make sure he paid the taxes on 148 00:07:03.160 --> 00:07:06.000 and to make sure he didn't get fined for not 149 00:07:06.279 --> 00:07:10.839 for underpaying taxes. He had to do a deposit pretty 150 00:07:10.920 --> 00:07:13.600 quickly after the sale of that, so it went in right. 151 00:07:13.759 --> 00:07:15.639 So mid year will help you take a look at 152 00:07:15.639 --> 00:07:17.759 those kinds of things and make sure it's done well. 153 00:07:17.959 --> 00:07:20.879 Absolutely, and Mark, you had hinted at this on Friday, 154 00:07:20.879 --> 00:07:24.040 But is it a good idea to actually physically set 155 00:07:24.040 --> 00:07:26.480 aside portions of gains? You know, say you sell a 156 00:07:26.519 --> 00:07:28.279 stock or like you said, you sell a business, and 157 00:07:28.399 --> 00:07:30.639 so you're setting aside this is roughly the amount that 158 00:07:30.680 --> 00:07:33.560 I'll need to pay in capital gains taxes when that happens, 159 00:07:33.600 --> 00:07:35.759 so that when tax time comes next year you're not surprised. 160 00:07:36.120 --> 00:07:39.600 Is is that generally a good idea? 161 00:07:39.759 --> 00:07:42.079 It can be, but I think it's a little early 162 00:07:42.199 --> 00:07:43.600 yet for most people. 163 00:07:43.759 --> 00:07:46.519 Okay, if you think about it, this could work for some. 164 00:07:46.680 --> 00:07:50.279 But if they need to do that, they should set 165 00:07:50.319 --> 00:07:53.240 it aside definitely in a different account or something to 166 00:07:53.360 --> 00:07:57.120 sure that it's there when they need it. But it 167 00:07:57.160 --> 00:08:01.360 may be best like in June and July. I if 168 00:08:01.360 --> 00:08:03.079 you figure out you're going to need some money for 169 00:08:03.199 --> 00:08:04.920 the end of the year. You may want to wait 170 00:08:05.000 --> 00:08:09.360 a little bit because unless there are some let's just say, 171 00:08:09.680 --> 00:08:13.519 in your investments, you're you're very aware of some losses 172 00:08:13.600 --> 00:08:15.560 and you really don't want to continue to hold this 173 00:08:15.759 --> 00:08:18.519 till it recovers. You might want to sell those off, 174 00:08:18.600 --> 00:08:21.360 and that way you can have that money ready for 175 00:08:21.480 --> 00:08:28.759 both tax loss harvesting and to pay your debt, your 176 00:08:28.959 --> 00:08:31.680 I R S debt. So you could do that, but 177 00:08:32.879 --> 00:08:35.559 if another thing you could do with it, if you 178 00:08:35.600 --> 00:08:38.000 think the markets are strong, is to just reinvest in 179 00:08:38.000 --> 00:08:40.039 and wait till the fourth quarter and re. 180 00:08:40.080 --> 00:08:41.919 Examine everything again there to. 181 00:08:41.919 --> 00:08:45.240 Make sure that it's close, that you really do understand 182 00:08:45.360 --> 00:08:47.720 what you're going to owe and and how much you're 183 00:08:47.720 --> 00:08:48.240 gonna need. 184 00:08:49.320 --> 00:08:53.399 Absolutely, and then Mark, some people wait till the first quarter. Yeah, yeah, 185 00:08:53.679 --> 00:08:55.039 that makes sense. Mark. 186 00:08:55.080 --> 00:08:58.159 What what about charitable giving for effective end of your 187 00:08:58.480 --> 00:09:00.360 end of the year tax planning? How might we to 188 00:09:00.360 --> 00:09:02.840 be thinking about that? Maybe it's still too early right now, 189 00:09:03.080 --> 00:09:04.200 but how should we think about it? 190 00:09:04.960 --> 00:09:06.120 Well, that's a good question. 191 00:09:06.840 --> 00:09:09.840 You know, you brought up taxes, so let's bring that's 192 00:09:09.879 --> 00:09:15.799 almost the dark that we're defunding. Now, let's go to 193 00:09:15.879 --> 00:09:20.200 shy let's go to funding the light. So you know, 194 00:09:20.559 --> 00:09:24.159 obviously giving is such a big part of being a steward, 195 00:09:24.799 --> 00:09:26.759 and you started the year off. 196 00:09:26.559 --> 00:09:27.200 With a plan. 197 00:09:27.759 --> 00:09:30.320 Maybe it was ten percent, maybe it was fifteen percent, 198 00:09:30.360 --> 00:09:33.080 but whatever, and hopefully e've ben sticking to the planet. 199 00:09:33.080 --> 00:09:35.919 It's a good time to look did and again ask 200 00:09:36.000 --> 00:09:38.759 that question what has changed? Well, if you are getting 201 00:09:38.799 --> 00:09:42.840 bonuses or if there has been capital gains, did you calculate. 202 00:09:44.039 --> 00:09:47.320 Did it? Did it cross your mind that maybe you'll 203 00:09:47.360 --> 00:09:48.279 want to give out of. 204 00:09:48.240 --> 00:09:51.399 That as well to honor God, you know, so you 205 00:09:51.480 --> 00:09:55.679 want to start doing the adjustments there, maybe increasing your 206 00:09:55.720 --> 00:09:57.879 donations a little bit, so by the end of the 207 00:09:57.960 --> 00:10:00.759 year it comes out the amount you really wanted. 208 00:10:00.840 --> 00:10:03.679 Are are Maybe your income has gone down or something 209 00:10:03.679 --> 00:10:05.559 like that. So it's all there. 210 00:10:05.679 --> 00:10:09.519 But also it becomes part of that thing that we 211 00:10:09.519 --> 00:10:13.159 were talking about just a second ago, where if you're 212 00:10:13.159 --> 00:10:16.840 going to owe taxes, part of reducing those stackses is 213 00:10:16.879 --> 00:10:21.080 your obvioushly, your charitable giving. So if you're going to 214 00:10:21.120 --> 00:10:23.200 work on it, you might say, okay, well we're gonna 215 00:10:23.240 --> 00:10:26.399 give even more now out of that, so that reduces 216 00:10:26.440 --> 00:10:28.480 that so I don't need to put as much as 217 00:10:28.519 --> 00:10:30.559 fie now as I thought I needed to. 218 00:10:31.039 --> 00:10:33.360 All the way around, they all coordinate together. 219 00:10:33.480 --> 00:10:36.000 That's why it's such a good idea to do a 220 00:10:36.039 --> 00:10:40.240 mid year financial Uh, just look back and make sure 221 00:10:40.279 --> 00:10:43.440 everything's good. Just ask that one question what has changed 222 00:10:43.480 --> 00:10:45.879 and what needs to change, and then you don't have 223 00:10:45.919 --> 00:10:47.279 any big surprises at. 224 00:10:47.200 --> 00:10:50.159 The end of the year. Six' ten three six three eleven. 225 00:10:50.279 --> 00:11:10.440 Ten, well grateful to have you here, today folks on 226 00:11:10.480 --> 00:11:12.120 number six ten three six three eleven. 227 00:11:12.200 --> 00:11:12.919 Ten join the live. 228 00:11:13.000 --> 00:11:15.440 Broadcast also today's show brought to you in part by 229 00:11:15.440 --> 00:11:16.799 our friends over At Crossroads Kids. 230 00:11:16.840 --> 00:11:18.840 Club go To reach Our schools dot. Com join, us. 231 00:11:18.840 --> 00:11:21.600 Folks we've got about four days left of this back 232 00:11:21.639 --> 00:11:24.879 to school. Campaign we're almost halfway, there so we got 233 00:11:24.919 --> 00:11:27.039 some ground to, cover, Folks so go make a donation 234 00:11:27.360 --> 00:11:29.480 two hundred dollars sponsors a child to be able to 235 00:11:29.519 --> 00:11:31.320 go to A Crossroads Kids club for a whole. Year 236 00:11:31.480 --> 00:11:33.919 so do that At reach Our schools dot. Com, Mark 237 00:11:33.960 --> 00:11:35.759 i'm very excited for this interview coming up. 238 00:11:35.799 --> 00:11:39.279 Here, absolutely it's because it goes to the heart of 239 00:11:39.320 --> 00:11:43.039 What biblical responsible investing is all. About it comes down 240 00:11:43.120 --> 00:11:49.240 to holding corporations accountable for what they do with stockholders'. 241 00:11:49.320 --> 00:11:52.600 Money i'm talking about dividends and the price of the. 242 00:11:52.679 --> 00:11:55.559 Stock joining us today to talk about this Is Stefan 243 00:11:55.679 --> 00:12:00.000 Padfield principle From Free Enterprise initiatives and senior legal things 244 00:12:00.440 --> 00:12:01.200 at The Heritage. 245 00:12:01.240 --> 00:12:03.960 Foundation, stefan so good to have, You. 246 00:12:05.159 --> 00:12:07.279 So great to be. Here thanks so much for having 247 00:12:07.320 --> 00:12:09.519 me on. Again we're. 248 00:12:09.519 --> 00:12:12.519 Honored, listen talk to us about this red. Flag this 249 00:12:12.799 --> 00:12:16.639 recent article you wrote about red flag case. Studies what 250 00:12:16.720 --> 00:12:19.080 does that? Mean red flag case studies about? 251 00:12:19.080 --> 00:12:24.720 Stocks, yeah So i'm basically pulling from a corporate governance 252 00:12:24.879 --> 00:12:28.279 in terms of law and legal oversight and fiduciary. Duty 253 00:12:28.559 --> 00:12:31.480 there's a line of cases out Of delaware in, particular 254 00:12:31.600 --> 00:12:35.600 where the idea is that the board and senior executives 255 00:12:35.639 --> 00:12:39.039 can't watch, everything but if they're confronted with a red 256 00:12:39.120 --> 00:12:42.039 flag and then they ignore, it that can be a 257 00:12:42.159 --> 00:12:45.120 breach of, duty, right a failure of. Oversight so red 258 00:12:45.159 --> 00:12:47.799 flags have a very key role to play in corporate, 259 00:12:47.840 --> 00:12:50.720 governance and SO i basically took that and ran with 260 00:12:50.759 --> 00:12:53.679 it for WHAT i hope to be an ongoing. Series. 261 00:12:53.759 --> 00:12:56.279 Right you, know when we work with, corporations we engage 262 00:12:56.279 --> 00:12:59.399 with corporations as a. Shareholder and by, WE i mean 263 00:12:59.440 --> 00:13:02.480 The Heritage foundation and the particular initiative That i'm a part, 264 00:13:02.519 --> 00:13:05.600 of The Free enterprise, Initiative and generally we want to 265 00:13:05.639 --> 00:13:09.320 do that behind closed, doors so to. Speak not that 266 00:13:09.360 --> 00:13:11.360 there's anything to, hide but just that you can have 267 00:13:11.440 --> 00:13:13.320 more open. Conversations, Right and. 268 00:13:13.279 --> 00:13:17.919 Potentially it's, biblical it's. Biblical. Thanks, first you go one 269 00:13:17.960 --> 00:13:18.559 on one to the. 270 00:13:18.600 --> 00:13:20.639 People you don't take it. Public you go one on 271 00:13:20.639 --> 00:13:24.240 one and you talk about the. Issue here's what it is, 272 00:13:24.279 --> 00:13:27.000 offending here's what we find the, problem here's what we 273 00:13:27.360 --> 00:13:29.960 believe is an, issue and you talk to them about. 274 00:13:29.960 --> 00:13:32.320 It Thank. YE i love That you're? 275 00:13:32.360 --> 00:13:35.159 Done, ye, yeah exactly. Exactly but every once in a 276 00:13:35.240 --> 00:13:38.360 while we do get, corporations and we're certainly not alone with, this. 277 00:13:38.480 --> 00:13:40.279 Right there's a number of people who are active in 278 00:13:40.320 --> 00:13:43.399 this space from the conservative, perspective and they have similar. 279 00:13:43.440 --> 00:13:47.120 Experiences there are just certain corporations that either we'll just ignore. 280 00:13:47.159 --> 00:13:49.519 YOU i, mean they'll do what they are legally obligated to, 281 00:13:49.559 --> 00:13:52.799 do but they won't engage any like a step beyond. 282 00:13:52.799 --> 00:13:55.639 That or we might have some engagements and then they 283 00:13:55.679 --> 00:13:58.360 just basically break off and don't. Reply so at that, 284 00:13:58.519 --> 00:14:00.960 point to the, extent we're looking at a corporation that 285 00:14:01.000 --> 00:14:03.480 has a number of red, flags you, know from our 286 00:14:03.519 --> 00:14:07.320 perspective in terms of protecting shareholder value and more broadly 287 00:14:07.440 --> 00:14:09.799 in terms of getting these corporations back to neutral because 288 00:14:09.840 --> 00:14:12.759 of all the effects that they have on our society at. 289 00:14:12.840 --> 00:14:15.679 Large you, know then there's an opportunity to go. Public 290 00:14:15.720 --> 00:14:19.320 and SO i started this, line and the initial, article 291 00:14:19.360 --> 00:14:22.480 which which does go Through disney as a case, study 292 00:14:23.200 --> 00:14:26.159 is really just to tee up the. Concept and then going, 293 00:14:26.200 --> 00:14:28.159 Forward i'll be able to just jump right in and, 294 00:14:28.159 --> 00:14:31.279 say you, know red flag case Study, colon here's the next, 295 00:14:31.320 --> 00:14:33.919 company and people can just look at that for, themselves 296 00:14:33.960 --> 00:14:37.039 because it is very. DIFFICULT i, mean most people are very, 297 00:14:37.080 --> 00:14:39.519 busy and a lot of these corporations are able to 298 00:14:39.519 --> 00:14:42.519 put on a good face in their public facing sort of, 299 00:14:42.559 --> 00:14:44.639 interactions and so you do have to do a little 300 00:14:44.639 --> 00:14:47.039 bit of, digging and that's something THAT i and the 301 00:14:47.039 --> 00:14:49.200 rest of us at The Free Enterprise initiative are able to, 302 00:14:49.240 --> 00:14:53.120 do and so making that information more available can really 303 00:14:53.120 --> 00:14:53.759 have value at. 304 00:14:53.799 --> 00:14:57.240 Times, well let's talk about some of these red. Flags 305 00:14:57.279 --> 00:14:59.759 what would be a red flag For disney. 306 00:15:00.440 --> 00:15:02.200 Well SO i go through this step by step up 307 00:15:02.240 --> 00:15:04.159 and this is very similar to the process that we 308 00:15:04.360 --> 00:15:07.159 use when we decide whether to engage with the corporation at. 309 00:15:07.159 --> 00:15:09.759 All So i'm sure your listeners and you are likely 310 00:15:09.799 --> 00:15:12.960 familiar with the seventeen ninety Two exchange and they put 311 00:15:12.960 --> 00:15:16.080 out corporate bias, ratings and so one place we'll look 312 00:15:16.240 --> 00:15:19.840 is is the corporation rated high risk by the seventeen 313 00:15:19.919 --> 00:15:22.559 ninety Two. Exchange and what's nice about the report they 314 00:15:22.559 --> 00:15:25.159 put out at the seventeen ninety Two exchange is it 315 00:15:25.200 --> 00:15:27.799 goes into a good amount of, detail but not an 316 00:15:27.879 --> 00:15:31.639 overwhelming amount of, detail so we actually get specific. Items, 317 00:15:31.679 --> 00:15:34.240 so for, example is there reason to be concerned that 318 00:15:34.240 --> 00:15:38.440 the company's using benevity as a screen for employee match 319 00:15:38.480 --> 00:15:41.159 in terms of giving such that THE splc comes in 320 00:15:41.200 --> 00:15:44.000 as a, potential you, know, screen which would be very 321 00:15:44.000 --> 00:15:48.320 problematic for its Anti christian, bias, Right so we look at. 322 00:15:48.320 --> 00:15:51.000 That then we look At Alliance Defending. Freedom they have 323 00:15:51.039 --> 00:15:55.080 a viewpoint diversity. Score they rate fewer, CORPORATIONS i would, 324 00:15:55.120 --> 00:15:58.639 say but certainly when they, do it's very. Useful and 325 00:15:58.679 --> 00:16:00.759 so they come at it from a slightly diferent perspective 326 00:16:00.799 --> 00:16:05.559 more focused on the viewpoint, diversity specifically when it comes 327 00:16:05.559 --> 00:16:10.639 to treating religious freedom. Properly, Right so we'll look there 328 00:16:10.639 --> 00:16:12.679 at their. Score, again you can go into the. Report 329 00:16:12.720 --> 00:16:14.960 you see a lot of specific items that's very helpful in. 330 00:16:15.000 --> 00:16:17.799 Engagement and then we'll also look at whether or not 331 00:16:17.919 --> 00:16:21.840 and to what extent the corporation is lining itself up 332 00:16:21.879 --> 00:16:24.120 with The Human Rights. Campaign. Right, so for, example With, 333 00:16:24.200 --> 00:16:27.000 disney not only do they get one hundred percent on 334 00:16:27.039 --> 00:16:30.320 The Corporate Equality, index but they are a verified, score 335 00:16:30.320 --> 00:16:33.440 which means they cooperated with the survey and they're the 336 00:16:33.519 --> 00:16:36.240 top level. Sponsor Right, so to the extent The Human 337 00:16:36.279 --> 00:16:39.440 Rights campaign has a lot of red flags just baked 338 00:16:39.480 --> 00:16:41.200 in in terms of what it does in terms of 339 00:16:41.240 --> 00:16:45.519 promoting transgenderism and pushing that on families and children and so, 340 00:16:45.559 --> 00:16:48.679 on that's a red flag right. There so one or 341 00:16:48.720 --> 00:16:53.480 more of, those in totality or combination certainly will make 342 00:16:53.559 --> 00:16:56.080 us look more closely at a. Corporation and then Finally i'll, 343 00:16:56.120 --> 00:16:58.159 say although a lot of other things can come, in 344 00:16:58.240 --> 00:17:00.759 like With, disney there was a specific letter from THE 345 00:17:00.799 --> 00:17:06.279 fcc asking about discrimination RIGHT dei related and so we'll 346 00:17:06.319 --> 00:17:09.440 pull up very corporate specific. Items but then stock price 347 00:17:09.640 --> 00:17:12.200 and stock price doesn't tell the whole. Story but when 348 00:17:12.240 --> 00:17:14.599 you've got a company that's been underperforming THE s AND 349 00:17:14.640 --> 00:17:17.640 p five hundred every year for the past five, years 350 00:17:17.799 --> 00:17:20.799 Like bristney, has that whole picture of go, woke go 351 00:17:20.920 --> 00:17:24.359 broke becomes. Glaring. Right on the one, hand you've got 352 00:17:24.400 --> 00:17:28.160 this company checking every single, block, right so they're high 353 00:17:28.240 --> 00:17:30.640 risk on seventeen ninety two, exchange they've got a very 354 00:17:30.680 --> 00:17:33.640 low score on the eighty f View Point Diversity, index 355 00:17:33.799 --> 00:17:36.960 they're all in WITH. Hrc and then, oh by the, 356 00:17:36.960 --> 00:17:39.400 way they've been underperforming THE s AND p five hundred 357 00:17:39.400 --> 00:17:42.079 And i'm talking by significant margins for the past five. 358 00:17:42.160 --> 00:17:44.799 Years you put all that together to argue there aren't 359 00:17:44.839 --> 00:17:47.319 red flags at that, company, Right and then what they've done, 360 00:17:47.319 --> 00:17:49.440 SPECIFICALLY i mean they've gone toe to, toe you know 361 00:17:49.480 --> 00:17:51.039 With DeSantis In, florida. 362 00:17:50.839 --> 00:17:51.880 Just some of the decisions they've. 363 00:17:51.920 --> 00:17:54.440 Made they had that report that was leaked where you 364 00:17:54.519 --> 00:17:56.799 basically had some producers, saying you, know we've got our 365 00:17:56.839 --> 00:17:59.400 not so secret gay. Agenda. Right it just goes on and, 366 00:17:59.440 --> 00:18:02.319 on and so that's the sort of thing that if 367 00:18:02.359 --> 00:18:04.799 you just go through your day and you're very busy 368 00:18:04.839 --> 00:18:07.200 and you just look at the, commercials you might not 369 00:18:07.359 --> 00:18:09.480 realize what you're dealing with when you're dealing with that. 370 00:18:09.559 --> 00:18:12.559 Corporation no commercials. 371 00:18:12.000 --> 00:18:15.640 Make everything look like happiness and fun and, joy not 372 00:18:16.519 --> 00:18:20.279 that they're pushing or promoting a certain agenda at all 373 00:18:20.680 --> 00:18:24.960 at the expense of the. Stockholders and that's the thing 374 00:18:25.000 --> 00:18:27.920 that REALLY i think brings it home for us here 375 00:18:28.079 --> 00:18:31.400 is that at the expense of the, stockholders not that 376 00:18:31.480 --> 00:18:34.559 every time somebody has an agenda other than what a 377 00:18:34.599 --> 00:18:38.720 biblical principle, agenda that it causes the stock price to go. 378 00:18:38.839 --> 00:18:42.680 Down but oftentimes it. Does and that's what you're saying 379 00:18:42.720 --> 00:18:45.880 with the go, woke go. Broke tell us more about. 380 00:18:45.880 --> 00:18:49.119 That how do you defend that concept that if you 381 00:18:49.200 --> 00:18:50.319 do go, woke you go? 382 00:18:50.359 --> 00:18:54.759 Broke, YEAH i, MEAN i think it does get quite. Tricky, Right, 383 00:18:54.799 --> 00:18:58.519 so there's some pretty startcases where the line drawing is pretty. 384 00:18:58.559 --> 00:19:01.279 EASY i would say With, disney it's relatively easy to, say, 385 00:19:01.319 --> 00:19:04.200 boy these, things it's hard to dismiss this as a. 386 00:19:04.200 --> 00:19:07.599 Coincidence but there's other situations where a company might actually 387 00:19:07.640 --> 00:19:11.559 be doing, Okay but then you ask the question of opportunity, cost, right, 388 00:19:11.640 --> 00:19:14.519 like how well would it be doing if it wasn't 389 00:19:14.559 --> 00:19:17.240 all in on these woke, Initiatives and so that's a 390 00:19:17.279 --> 00:19:20.079 hard thing to tease. Out but it's not simply, oh, 391 00:19:20.160 --> 00:19:22.519 well we're outperforming THE s AND p five, hundred so 392 00:19:22.559 --> 00:19:25.079 everything is. Fine, no you could be doing a lot 393 00:19:25.119 --> 00:19:27.880 better if you weren't dragging. DOWN i, mean there's there's 394 00:19:27.920 --> 00:19:31.599 this idea of a luxury, good, right and SO dei 395 00:19:31.839 --> 00:19:35.000 AND esg have often referred to as luxury, goods which 396 00:19:35.039 --> 00:19:38.720 is to, say companies that are very, profitable, Right companies 397 00:19:38.720 --> 00:19:41.640 that are very profitable can afford to essentially waste money 398 00:19:41.640 --> 00:19:44.480 on that, stuff, Right and they still look okay because 399 00:19:44.519 --> 00:19:46.640 they're so far ahead of the. Market and we know 400 00:19:46.720 --> 00:19:49.400 some companies like. That so the stock price, matters but 401 00:19:49.440 --> 00:19:53.240