Speaker 1: Welcome to another edition of the Chicks on the Right
podcast where we talk to a friend and sponsor of
the show, Zach Abraham from Bulwart Capital Management, and today
we have a very unusual, weird topic. It's not brand
new news, but it is kind of in the news
right now, and that is the fact that Klarna, like
this payment system, and door Dash have partnered together. So
so basically people can get an installment plan to pay
for their meal for interest free in payment installments. And
so this seems really emblematic of our entire culture that
you can't just pay for your food. And so now
there's some you know, people are saying, well, the good
thing is that you can. It's interest free, it's not
like it's costing you any more per se. But then
other people are saying, this is a terrible idea because
it's going to just lead people to overspend because they
don't have that feeling that they're just paying it off
in one you know, one fell swoops you don't have
afraid what do you think about it?
Speaker 2: I'm afraid before for you answer that, Zach, I'm afraid
that eventually there's going to be a politician, like four
years from now, a Democrat politician is going to be like,
we're going to pay off your food loans. I'm so
afraid of that.
Speaker 3: That's we're paying off yours, paying.
Speaker 2: Off your chicken, your Chipotle loans. I'm afraid.
Speaker 4: I mean, by that time, we could be wasting away
because maybe everybody's on ozembic and maybe maybe the battle
cry will be make America fat again.
Speaker 3: Maybe or like we on the skinny.
Speaker 2: Side, writer RFK will have gotten all the preservatives out
of our food and like everybody is just like so
incredibly healthy that I don't know what's going to happen.
But you're right, but it's crazy and it's all lay away.
We're putting food on lay away. Now, what are we doing?
Speaker 3: Well?
Speaker 1: But not really because you get it right away, you
get your food still, that's right.
Speaker 2: It isn't like you're right, reverse lay away, Yeah right,
it's reverse lay away. They're putting it on charge cards.
Speaker 3: Yeah.
Speaker 4: I So, first of all, this kind of this kind
of might be a weird response to this, but when
I hear something like that, I think, then again.
Speaker 3: To it's a cultural failure, but it's also.
Speaker 4: An educational failure, right, because do I blame the companies
for doing this.
Speaker 3: No, and I guarantee you they've done a lot of.
Speaker 4: They've done a lot of work that's probably similar to
like actuary work figuring out you know, Okay, what will
our recovery rate be on these This is profitable. You
can't get bad at them because they're hitting the people
with interest, you know. That's the other thing people, we
need to accept it. If people want to be stupid,
they should be allowed to be stupid.
Speaker 3: True, you know what I mean.
Speaker 4: It's check because because it costs so much for the
rest of the society to idiot proof everything. And I
think we're suffering from that right now, which is you know,
it's the old adage.
Speaker 3: It's sad but true. A fool and his money.
Speaker 4: We're lucky enough to get together in the first place,
you know, and it's not it's not going to last, right,
And so to me, it's really a break down in
financial education. And it goes back to a conversation I
was having this morning with a client of mine and
he had hired a twenty three year old kid, and
we were talking about how these kids come out and
even at the age of twenty three, twenty four, we
all know that they have really unrealistic income expectations, but
it's driven by what they're seeing, primarily on social media
and believing that there's so much further head. There's so
much further behind, There's so much And I tell them,
I'm like, look, man, I live a pretty good life.
I didn't have two pennies to r up together when
I was twenty three. You're gonna be just fine, but
not if you keep listening to all of these freaking nonsense.
You don't need a Lamborghini, you don't need a credit
card with no limit, you don't need a black Amex,
you don't need lay away for your food. What you
need to do is learn how to spend less than
you make and quit hearing about what a bunch of
idiots that you don't know think about you. Yeah, right,
And the further and the quicker you do that, the
more you will accomplish, the greater levels you will go to.
Because right, there's so many constraints that we build around ourselves,
and putting ourselves in a bad position financially is one
of them.
Speaker 3: Yeah, right, And for all of these stupid.
Speaker 4: Reasons, and if kids were properly educated, speak, Look, there's
still going to be people that make stupid decisions, right,
But I think, well, I'll just tell you first handed,
and I'm sure if you had more of these conversations,
you guys would be just as shocked, if not more shocked,
than I am. But you go through life working hard,
putting money away, trying to make sensible decisions. If you
really and maybe you guys have people in your life
like this, if you really start understanding and seeing and
realizing what the quote unquote average person is out there
doing with their money and what they think.
Speaker 3: Is average, it is freaking shocking.
Speaker 2: Yeah, it is shocking, yeah.
Speaker 3: Right, Like how ideal?
Speaker 4: I see people all the time four five hundred thousand
dollars a year incomes levered to the gills, right, and
you're looking at them going, what.
Speaker 3: Are you doing? What are you? What are you doing?
Speaker 4: Right? You can live on two hundred grand after tax
money if you're making five hundred grand a year and
still bank one hundred grand.
Speaker 2: A year, right, That ain't that right?
Speaker 3: Right?
Speaker 4: I mean you can do a lot of damage with
seventeen grand after tax money a month and you're stalking
away ten grand.
Speaker 3: It's not rocket science.
Speaker 4: And more importantly, it's sad to see people do it
because I've been blessed enough in my life to experience
both ends of the financial spectrum and to be at
a place now where I'm not wealthy, but you know,
I'm not limited by the things that I want, you know,
in terms of my income. And I try to tell
this to me, You're gonna hear it from a million people.
You're gonna hear it from one more. If you think
having those things, or the ability to buy those things
is the secret to happiness, you're gonna be horrifically disappointed
because most of you, once you achieve it, you're not
gonna want it. Yep, because you're no longer an idiot. Yep. Right,
And you realize that driving around a billboard telling everybody
how much money you have isn't fun anyway.
Speaker 3: Yep.
Speaker 2: Right, It's so true.
Speaker 3: It attracts all the wrong people.
Speaker 4: So it's just to me, it's it's the it's the
financial education thing, and it breaks my heart because there
are real costs to this, right, these things. A lot
of people don't figure this out by the time they're
thirty five, Right, they end up with two bankruptcies on
a second marriage, at the age fifty two.
Speaker 3: Yeah, right, what do you.
Speaker 1: What do you tell the people that like, because you know,
when I read about this deal, I get that Klarna
is paying DoorDash like we're or maybe DoorDash is paying
I can't even remember who is actually paying for the service.
I think DoorDash is actually paying Klarna so that they
feel like they're gonna be able to offer their services
to more people because it'll be more affordable.
Speaker 3: But there is.
Speaker 1: Something to be said for the fact that this is
for interest free payments, where most people are using a
credit card that does not have interest free payments. So essentially,
if you're really being thoughtful about it, and I doubt
most people are being that way, but if you're being
thoughtful about it, you could make the argument, I'm saving
money by splitting it up because I'm not putting it
on my credit card, which I may not pay off
every month.
Speaker 3: Do you know what I mean?
Speaker 4: Oh? Yeah, well, I mean like for instance, so I
mean yeah, I can see, yeah, I can say this.
Speaker 3: I was sitting there and I don't want to so
we've got to we like, if you're here at the
here at our business.
Speaker 4: We have a American Express platinum corporate card, right, and
they've got killer cash back deals and all that kind
of stuff. And so we literally put every single bill
every month on that thing and pay it off.
Speaker 3: Right, So we do that. Here's the problem with that.
Speaker 4: You and I might do that most people want, right,
most people are going to use that to continue to
buy and send at levels that they.
Speaker 2: Can't really and not pay it off.
Speaker 1: Right.
Speaker 4: But to the point of like people calling out like
Klarna and.
Speaker 3: And uh, what's.
Speaker 4: The yeah, and door to ask, I'm sitting there going again,
it's it's it's interest free, it's transparent. I don't see
the like I get why they're doing it, right, And
and this is kind of one of the this is
kind of one of the hidden costs of the Internet,
if you will, is the Internet has made it possible
for these businesses basically to do like micro transactions, and
because they can do them on such a broad scale
using the Internet, you can offer things that otherwise wouldn't
be economical.
Speaker 3: Right, And.
Speaker 4: Most of the time that scene as an efficiency, But
in this case, in situations like this, I think that
that is actually an impediment and a danger to the
average consumer, right, because they're getting access to things that
that never would have been Like for instance, if you
didn't have an Internet, not only would door dash not
be feasible, but this whole setup wouldn't be feasible, right
because because the only way they can do this is
if there's it's it's like life insurance. You can do
these sorts of things if you're doing it to a
wide enough pool of people, and the only reason it's
feasible is through the Internet and the Like I said,
the cost of that comes with the ability to people,
for people to do things they shouldn't do that they
otherwise never would have had the ability to do right
without doing so, Yeah, it's I don't have a problem,
Like I said, I don't have a problem with the
companies offering it. But it's just another one of those
things where people are just putting themselves in debt bondage
for all the wrong you know, it's just the memes.
Speaker 1: Though the memes are great. There was I saw this
one of le guy said. This is from Chase Passive
Income and it says excited to announce that I closed
on a thirty one dollar and thirty eight cent transaction
to secure a burrito as a side of chips. It
goes twenty plus year or twenty year senior fixed rate.
Financing was provided by Klarna. Door Dash provided delivery of
the asset. Congratulations to all involved.
Speaker 4: The funny well, and the funny thing is is that
fits in so much into like you know, the market
right now, right Yeah, Like there's just there's I mean,
I love the meme that I describes it, but man,
it's it's so it's so true. Like you watch the
movements of some of these stocks right like it's just
it's just great. Like today now, I think we're all
supporting what Elon is doing, right, all supporting Tesla, holping
them all the best, all that kind of stuff.
Speaker 3: Tesla stock up ten percent of it.
Speaker 4: If you want to actually look at the merits of
Tesla as a company, that stock would probably be too
expensive of expensive for.
Speaker 3: Us if it was half its current price.
Speaker 4: Okay, Like we have got such ridiculous expectations of investors
right now, and I as investors, and I think it's
it's unfortunately. I think it's going to create a lot
of what we were just talking about. I think it's
going to create a lot of people that are all
loaded up on a bunch of things that are very
irresponsible and where there's not real value there. And uh,
you know, I think we're in the process now of
those things starting to get to more of an intrinsic value.
And I think a lot of people are going to
get wrecked, kind of like with this, you know, micro
finance thing. I just all you see are just people
keep levering up and making bad decisions, and I hate
to see it.
Speaker 1: Well, I mean, and this is this is your field,
this is your industry expertise. You are really really good
at helping people become financially literate. It's why you do
all those webinars and why you offer risk reviews to
folks that are complementary. Where can people find out more
about how to do that?
Speaker 3: Yes, that was well said.
Speaker 2: Thanks, She's very good at that, very very Yeah.
Speaker 4: I was gonna say, yeah, I want her to start
pitching this other than me here. You can always get
us at Bordcapital Management dot com.
Speaker 3: Know your risk radio dot com.
Speaker 4: And you know, obviously I'm biased, it's my company, but
I think everybody should do it. We don't twist arms.
We're not gonna keep calling you if you don't like to.
We sit down, have a thirty to forty five minute
consultation with you. Next meeting, we come back okay, based
on what you said, here are some things that we
think would make sense. What do you think about that?
Get a little more information. Third phone call, We go okay,
here's portfolio proposal. Here's what it's going to cost you.
Let us know if you'd like to proceed.
Speaker 3: Right. So, yeah, it's it's not too big, not too.
Speaker 4: Uh, not too arduous, not too painful, and it doesn't
cost you anything. And if nothing else, maybe you'll leave
more informed.
Speaker 1: You know, and you can and people need to go
to know your Risk radio dot com.
Speaker 3: And Bullwardcapitalmanagement dot com. Yep, yep. Perfect find us there,
not hard to find us. Thank you, Zach, Thank you.
Eighties as fun as always. Reservices offered through Trek Financial
loc and SEC Registered Investment Advisor.
Speaker 4: The opinions expressed in this programmer for general informational purposes only,
and are not intended to provide specific advice or recommendations
for any individual or on any specific security.
Speaker 1: Any references to performance of security so it thought to
be materially accurate and actual performance may Different investments involve
risk and are not guaranteed. Past performance doesn't guarantee future results.
Speaker 3: Trak twenty fourth rows zero week