WEBVTT 1 00:00:00.120 --> 00:00:03.319 Make us your number one preset for instant access. It's 2 00:00:03.359 --> 00:00:05.040 my go to fifty five. 3 00:00:04.960 --> 00:00:10.800 KRC the talk station, you know, six fifty five kr 4 00:00:10.839 --> 00:00:15.400 CD talk station. Happy Monday, It's Monday, It's ato six, 5 00:00:15.439 --> 00:00:18.719 which meeks is time for all Worth Financials Brian James 6 00:00:18.719 --> 00:00:21.160 and another edition of Money Monday. Brian, welcome back up. 7 00:00:21.199 --> 00:00:26.000 You had a nice weekend, my friend. Your microphone's off. 8 00:00:26.039 --> 00:00:26.359 Brian. 9 00:00:27.600 --> 00:00:29.600 Wow, that's two weeks in a row. Brian, that's two 10 00:00:29.600 --> 00:00:31.480 weeks in a row. I got to put another dollar 11 00:00:31.480 --> 00:00:31.879 in the jar. 12 00:00:32.039 --> 00:00:35.439 My bad. Good morning, Brian, Good morning, mister Thomas. How 13 00:00:35.479 --> 00:00:36.920 are you? Can you hear me loud and clear of 14 00:00:37.600 --> 00:00:37.960 this time? 15 00:00:38.119 --> 00:00:39.799 Loud and clear? It's working fine now. 16 00:00:40.119 --> 00:00:45.280 So anyhow, it's not the smart thing to do take 17 00:00:45.320 --> 00:00:48.399 your Social Security BEN benefits earlier. But I guess, at 18 00:00:48.479 --> 00:00:50.520 least based on the article reported in the Wall Street 19 00:00:50.600 --> 00:00:53.159 Journal that you provided for the context of this conversation, 20 00:00:53.799 --> 00:00:58.600 fear mongering has driven people to claim benefits earlier and 21 00:00:59.000 --> 00:01:01.600 bad idea. So what's the story behind this one, Brian James. 22 00:01:01.920 --> 00:01:04.959 Now, the story is whenever people get nervous about Social Security, 23 00:01:04.959 --> 00:01:07.879 and we had this during the first Trump administration as well, 24 00:01:07.879 --> 00:01:10.239 whenever people get nervous, the answer is always, well, I'll 25 00:01:10.280 --> 00:01:12.040 just go turn on my benefits now. That way, I'll 26 00:01:12.040 --> 00:01:15.599 be as guaranteed as I possibly can. They're really let's 27 00:01:15.599 --> 00:01:18.000 cut to the chase here. There isn't any evidence at 28 00:01:18.000 --> 00:01:21.560 all showing that that Trump has it in his sights 29 00:01:21.599 --> 00:01:24.560 in terms of actual action. But I will say I 30 00:01:24.599 --> 00:01:26.879 can confirm just from my normal day to day I'm 31 00:01:26.879 --> 00:01:28.400 getting a lot of questions about this, and I have 32 00:01:28.560 --> 00:01:30.560 had clients that there that have decided, you know, what 33 00:01:30.599 --> 00:01:31.799 the heck with it. I just want to you know, 34 00:01:31.840 --> 00:01:33.760 burden the hand versus two in the bush. I want 35 00:01:33.760 --> 00:01:36.439 to go ahead and turn on this big our position 36 00:01:36.519 --> 00:01:39.400 at all worth as we're having clients, you know, doing 37 00:01:39.439 --> 00:01:42.439 our planning processes and all that has not changed, which 38 00:01:42.480 --> 00:01:44.840 is that Social Security is not in a good spot. 39 00:01:45.599 --> 00:01:47.480 But that is not That's been something I've talked about 40 00:01:47.519 --> 00:01:50.280 all three decades of my career. Really been in a 41 00:01:50.319 --> 00:01:52.799 good spot. The math has really never worked, never worked. 42 00:01:52.599 --> 00:01:55.120 Congressional Office, but Budget Office comes out with it every year, 43 00:01:55.200 --> 00:01:57.519 tell you how much longer it has before it's going 44 00:01:57.560 --> 00:01:59.239 to collapse on it. So this has got nothing to 45 00:01:59.239 --> 00:02:01.680 do with the Trump imministration, the Biden administration and Bomb 46 00:02:01.719 --> 00:02:05.079 administration has everything to do with Congress not taking steps 47 00:02:05.359 --> 00:02:08.560 to correct the problem or fix it in some way. 48 00:02:09.280 --> 00:02:11.240 Yeah, and this goes back to the forties. 49 00:02:11.240 --> 00:02:13.879 So I think the real issue here was that we 50 00:02:13.960 --> 00:02:16.400 decided in the nineteen forties that we were going to 51 00:02:16.520 --> 00:02:20.439 carve an eight percent increase in stone. That eight percent 52 00:02:20.479 --> 00:02:23.120 you get every year you don't file for Social Security 53 00:02:23.159 --> 00:02:25.280 has been in stone since the early forties when it 54 00:02:25.319 --> 00:02:27.759 was first put in place. It does not react inflation, 55 00:02:27.800 --> 00:02:30.000 that does not react to interest rates. So when we 56 00:02:30.080 --> 00:02:32.680 went through so security had a problem anyway before we 57 00:02:32.719 --> 00:02:34.719 went through twenty years of the lowest interest rates the 58 00:02:34.759 --> 00:02:37.599 world had ever seen. But so Security kept going up 59 00:02:37.639 --> 00:02:40.879 by eight percent like clockwork every single year. So that 60 00:02:41.039 --> 00:02:44.240 accelerated the problem. But nothing has changed just because Trump 61 00:02:44.280 --> 00:02:46.719 is in office. The mask still says and as you mentioned, 62 00:02:46.759 --> 00:02:49.159 the CBO looks at this every year, and the mask 63 00:02:49.199 --> 00:02:51.400 still says that the quote unquote, and we got to 64 00:02:51.439 --> 00:02:54.039 qualify this. The quote unquote trust fund is going to 65 00:02:54.120 --> 00:02:57.240 run out by twenty thirty one, twenty thirty two, thirty three, 66 00:02:57.360 --> 00:02:59.680 something like that. Now, let's make sure everybody understands that 67 00:02:59.680 --> 00:03:01.840 does not mean that a pile of money is going 68 00:03:01.879 --> 00:03:04.000 to go poof. That is not what that is. That 69 00:03:04.159 --> 00:03:06.599 simply means that for all of us. You know, I'm 70 00:03:06.599 --> 00:03:09.199 sitting here at work, You're working. I see Joe working hard. 71 00:03:09.199 --> 00:03:10.680 There's a lot of people out there on the highway 72 00:03:10.719 --> 00:03:12.639 trying to get to their jobs. All of us are 73 00:03:12.639 --> 00:03:14.520 going to get a paycheck sometime in the next two weeks 74 00:03:14.520 --> 00:03:16.240 and it will say FIKA on it, and there will 75 00:03:16.280 --> 00:03:19.639 be a deduction that's you paying for your Social Security benefits. 76 00:03:19.879 --> 00:03:22.639 That is going to continue well past twenty thirty three, 77 00:03:22.759 --> 00:03:25.199 twenty thirty four, whatever the magic year is. So as 78 00:03:25.240 --> 00:03:28.319 long as money is flowing from paychecks, it's going to 79 00:03:28.400 --> 00:03:32.520 reach beneficiaries. If they change nothing, then benefits will need 80 00:03:32.520 --> 00:03:35.280 to drop by about seventy percent because that's what we 81 00:03:35.319 --> 00:03:38.400 will be bringing in from current workers to pay beneficiaries. 82 00:03:38.479 --> 00:03:40.960 Right now, we're bringing in more. That's the trust. 83 00:03:40.639 --> 00:03:46.960 Fund well, and as the article reflects, it really is 84 00:03:47.080 --> 00:03:49.280 prudent to put it off as far as you can, 85 00:03:49.360 --> 00:03:53.000 because benefits starting at age seventy are seventy six percent 86 00:03:53.080 --> 00:03:55.280 higher than if you start a drawing at sixty two. 87 00:03:55.639 --> 00:03:58.280 That's a substantial difference. 88 00:03:58.520 --> 00:04:00.520 Yeah, it's a substantial difference, but I'm not going to 89 00:04:00.560 --> 00:04:03.400 call it prudent because that it could be different for anybody. 90 00:04:03.479 --> 00:04:05.759 If you are a person who sometimes the math just 91 00:04:05.759 --> 00:04:08.000 doesn't work and there are no other resources for income, 92 00:04:08.039 --> 00:04:09.439 that kind of thing. So I don't want people thinking 93 00:04:09.439 --> 00:04:10.960 it's black and white. I got to wait till seven. 94 00:04:11.000 --> 00:04:14.080 I it's not the case. However, if you do have longevity, 95 00:04:14.120 --> 00:04:16.120 you expect to get past your you know, your early 96 00:04:16.160 --> 00:04:18.959 to mid eighties and whenever your relatives passed away, isn't 97 00:04:19.000 --> 00:04:22.160 necessarily the only the only only factor, because there's a 98 00:04:22.199 --> 00:04:24.120 lot of people in their nineties at nursing homes that 99 00:04:24.120 --> 00:04:26.199 didn't expect they were still going to be around. But 100 00:04:26.279 --> 00:04:29.399 it's that is a very personal specific decision based on 101 00:04:29.439 --> 00:04:32.680 your own financial circumstances. So just because it's the highest 102 00:04:32.720 --> 00:04:35.160 number doesn't make that the answer. What other resources that 103 00:04:35.199 --> 00:04:37.399 you have that you could tap into? And I'll tell 104 00:04:37.399 --> 00:04:39.279 you where the pivot point is, Brian. If you're somebody 105 00:04:39.279 --> 00:04:41.800 who has resources, You've got your own savings, that kind 106 00:04:41.800 --> 00:04:43.759 of thing. When I do the math for clients, it 107 00:04:43.800 --> 00:04:45.920 tends to be what is the tax treatment of your 108 00:04:45.959 --> 00:04:49.279 various other resources? If you have all four oh one K, 109 00:04:49.439 --> 00:04:51.000 like many of us do. Lots of us work for 110 00:04:51.040 --> 00:04:53.680 companies in this area that support that either are or 111 00:04:53.680 --> 00:04:56.120 support Fortune five hundred companies. That means we got a 112 00:04:56.120 --> 00:04:58.079 boatload a four oh one K money that probably has 113 00:04:58.120 --> 00:04:59.079 not been taxed yet. 114 00:04:59.399 --> 00:05:01.680 That tends to be the pivot point where. 115 00:05:01.480 --> 00:05:03.839 If you're going to get taxed earlier in your early sixties, 116 00:05:03.839 --> 00:05:05.279 if you have to draw on your four oh one K, 117 00:05:05.399 --> 00:05:06.879 that might say, you know what, go ahead and turn 118 00:05:06.920 --> 00:05:09.839 on social security first. However, if you've inherited a pile 119 00:05:09.879 --> 00:05:12.399 of money, or perhaps you've built up a significant amount 120 00:05:12.439 --> 00:05:15.319 of wroth IRAA is not taxed, that tends to favor 121 00:05:15.560 --> 00:05:17.399 pushing social Security out a little bit. 122 00:05:17.560 --> 00:05:19.879 That's a really important point you make there. And not 123 00:05:19.959 --> 00:05:22.879 already has the resources like in a four oh one 124 00:05:22.959 --> 00:05:25.199 K to cover themselves adequately. You got to take this 125 00:05:25.279 --> 00:05:27.600 so security when you can, when you need it. So 126 00:05:28.240 --> 00:05:30.439 I guess the other component of this is, you know, 127 00:05:30.639 --> 00:05:33.720 people are living longer, which suggests, and I think the 128 00:05:33.759 --> 00:05:38.199 statistics bear this out, they're choosing to work longer. And 129 00:05:38.240 --> 00:05:41.759 if you're continue employment, you've got that steady revenue stream 130 00:05:41.800 --> 00:05:43.680 in there, maybe you can continue to contribute to your 131 00:05:43.680 --> 00:05:45.639 wroth or maybe continue to contribute to your four oh 132 00:05:45.680 --> 00:05:48.240 one K. But that also will help you allow delay 133 00:05:48.279 --> 00:05:50.319 that Social Security draw for a while longer. 134 00:05:51.120 --> 00:05:53.560 Yeah, a lot of people are always on the fence 135 00:05:53.560 --> 00:05:56.319 Brian when it's time to retire, because it's a big commitment. 136 00:05:56.360 --> 00:05:59.040 We all kind of hide behind the money. But once 137 00:05:59.079 --> 00:06:00.759 we realize, you know, for people who are in a good, 138 00:06:00.759 --> 00:06:03.680 fortunate situation and have worked hard, then they realize, you 139 00:06:03.720 --> 00:06:06.040 know what, I've never thought about whether I actually want 140 00:06:06.079 --> 00:06:08.519 to work. You know, maybe it's important to me to 141 00:06:08.560 --> 00:06:09.839 have a place to go to get out of bed 142 00:06:09.920 --> 00:06:11.439 and have some you know, some purpose and that kind 143 00:06:11.480 --> 00:06:13.319 of thing. Not everybody is dying to get away from 144 00:06:13.319 --> 00:06:15.319 work in general. They just haven't been able to pull 145 00:06:15.319 --> 00:06:18.600 a trigger yet. Those folks are definitely saying I'm gonna 146 00:06:18.639 --> 00:06:20.160 just keep working for a little while. Long ago, I 147 00:06:20.160 --> 00:06:22.120 was on the fence anyway, But now this, you know, 148 00:06:22.519 --> 00:06:24.959 I just don't deny. I might totally turn on Social 149 00:06:24.959 --> 00:06:27.560 Security if the math works, but I'm definitely still gonna 150 00:06:27.639 --> 00:06:29.720 keep working. Now, let's talk about that situation for a 151 00:06:29.720 --> 00:06:31.600 little bit, because there is a bit of a. 152 00:06:31.560 --> 00:06:32.319 Bite you can take. 153 00:06:32.360 --> 00:06:35.120 I would be very very very careful, just running down 154 00:06:35.120 --> 00:06:37.759 to Social Security. If you are between age sixty two 155 00:06:38.120 --> 00:06:40.560 and your full retirement age, which will be somewhere between 156 00:06:40.560 --> 00:06:43.240 sixty six and sixty seven depending when you're born. If 157 00:06:43.279 --> 00:06:46.000 you are between those ages and you turn on Social 158 00:06:46.000 --> 00:06:48.759 Security while you're working, you're gonna give. 159 00:06:48.600 --> 00:06:49.480 A chunk of that back. 160 00:06:49.519 --> 00:06:52.079 There is there's something called the earnings test that will 161 00:06:52.079 --> 00:06:53.839 take away a chunk of that Social Security pain. 162 00:06:54.600 --> 00:06:57.279 And that isn't that something that Trump has talked about, 163 00:06:57.399 --> 00:07:01.680 like not taxing Social Security because you know everybody who've 164 00:07:01.759 --> 00:07:03.680 used that, it's sort of it seems outrageous. 165 00:07:03.720 --> 00:07:04.279 Wait a second. 166 00:07:04.319 --> 00:07:06.639 You know I paid all the taxes, and you know 167 00:07:07.279 --> 00:07:09.000 I had income tax at the time, and they took 168 00:07:09.040 --> 00:07:11.279 out my FIKA, and you know, here I am getting 169 00:07:11.319 --> 00:07:14.639 taxed on what I basically quote unquote invested in throughout 170 00:07:14.639 --> 00:07:17.000 my life. I get it with the four to one 171 00:07:17.079 --> 00:07:19.839 K because it's pre tax earnings. But this doesn't seem 172 00:07:19.920 --> 00:07:22.199 quite right about taxing social Security benefits. 173 00:07:22.560 --> 00:07:25.000 Yeah, and that's a good point, but that's slightly different. 174 00:07:25.040 --> 00:07:26.639 What I was referring to is the fact that you 175 00:07:26.680 --> 00:07:28.920 will take a haircut on your Social Security payment if 176 00:07:28.920 --> 00:07:31.600 you are going to generate W two income somewhere around 177 00:07:31.759 --> 00:07:34.800 twenty some thousand dollars as if you're still working and 178 00:07:34.839 --> 00:07:37.439 you're under that age sixty seven what you're referring to. Yes, 179 00:07:37.480 --> 00:07:39.519 Trump has talked about we're not going to tax Social 180 00:07:39.519 --> 00:07:42.560 Security at all, but that so far is nothing more 181 00:07:42.600 --> 00:07:46.959 than a campaign promise, and we are, in fact we've 182 00:07:46.959 --> 00:07:50.360 actually been draining the Social Security tanks a little bit 183 00:07:50.399 --> 00:07:52.600 more quickly. One of the recent changes was the Social 184 00:07:52.600 --> 00:07:56.160 Security Fairness Act that would that came forward under Trump, 185 00:07:56.240 --> 00:07:59.279 but it was it was basically put into law by Biden, 186 00:07:59.480 --> 00:08:03.360 which is removing something called the windfall elimination provision, which 187 00:08:03.399 --> 00:08:06.439 took away dollars from somebody who had a In this area, 188 00:08:06.519 --> 00:08:08.399 we have a lot of people who were state teachers 189 00:08:08.920 --> 00:08:11.759 in some of the state sponsored pension plans. If you 190 00:08:11.800 --> 00:08:14.000 paid into Social Security earlier in career and then you 191 00:08:14.040 --> 00:08:16.480 spent the rest of your career on paying into a 192 00:08:16.519 --> 00:08:20.079 state plan, then you had to take a haircut on 193 00:08:20.120 --> 00:08:23.240 your soci Security payment. There that has now been removed. 194 00:08:23.720 --> 00:08:26.199 And if you are in this situation that so Security 195 00:08:26.279 --> 00:08:28.839 is reaching out right now to confirm with people and 196 00:08:28.839 --> 00:08:30.639 tell them what their payment is going to be. Increasing 197 00:08:30.680 --> 00:08:34.120 to the windfall elimination provision has been removed. That's good news, 198 00:08:34.320 --> 00:08:36.759 but that is we've just widened the drain on Social 199 00:08:36.759 --> 00:08:39.279 Security just a little bit more. So next time the 200 00:08:39.320 --> 00:08:41.440 CBO talks about this, it's going to have to reflect 201 00:08:41.440 --> 00:08:43.720 the fact that there are bigger payments going to people 202 00:08:44.360 --> 00:08:46.360 you know, that weren't receiving them before, and that's not 203 00:08:46.399 --> 00:08:47.039 in the math yet. 204 00:08:47.279 --> 00:08:47.519 Yeah. 205 00:08:47.799 --> 00:08:49.840 I guess the takeaway I have from the article is, 206 00:08:49.879 --> 00:08:51.679 you know, if everyone was saying, you know, I'm going 207 00:08:51.759 --> 00:08:54.000 to start tapping into it early because I think it's 208 00:08:54.039 --> 00:08:58.440 going to disappear through mismanagement by our federal government, the 209 00:08:58.440 --> 00:09:01.320 whole programs on ICE make more sense than saying, oh 210 00:09:01.360 --> 00:09:03.320 my god, evil Trump is going to get rid of 211 00:09:03.320 --> 00:09:06.039 Social Security. That I mean, there's no truth at all 212 00:09:06.159 --> 00:09:08.759 to that, So that someone would make a life changing 213 00:09:08.799 --> 00:09:13.039 decision to start taking this draw early because of say, oh, 214 00:09:13.080 --> 00:09:16.759 evil Orange Man. I mean that the level of ignorance 215 00:09:16.799 --> 00:09:18.759 that suggests is just to me mind boggling. 216 00:09:19.480 --> 00:09:20.879 Yeah, and a lot of it comes from me. 217 00:09:20.919 --> 00:09:23.679 There are voices in the Republican Party that, of course 218 00:09:23.720 --> 00:09:26.399 want to reduce Medicaid benefits and that is not germane 219 00:09:26.399 --> 00:09:29.480 to this particular conversation. However, I think people come back 220 00:09:29.519 --> 00:09:31.279 and they say, well, if he's coming after medicaid, will 221 00:09:31.279 --> 00:09:33.279 come after everything else. Therefore, I'm just going to turn 222 00:09:33.279 --> 00:09:34.919 on this big and be done with it. That's not 223 00:09:35.000 --> 00:09:36.600 there's no more truth of that than anything else. 224 00:09:36.919 --> 00:09:42.720 Well, apparently Americans are financing groceries, not a positive signal. 225 00:09:42.720 --> 00:09:45.080 We'll talk about that with Brian James coming up next. 226 00:09:45.120 --> 00:09:45.399 First. 227 00:09:45.879 --> 00:09:49.320 USA Insulation outstanding product is it's all about money, but 228 00:09:49.360 --> 00:09:52.320 it's also about comfort because money savings comes with USA 229 00:09:52.360 --> 00:09:55.799 Insalation's premium FUMM, no supply chain issues. It's made right 230 00:09:55.799 --> 00:09:58.879 here in the state of Ohio. Thousands of homes are 231 00:09:58.960 --> 00:10:01.480 enjoying lower energy builds thanks to the USA premium foaming 232 00:10:01.480 --> 00:10:03.960 the xterior walls. You can be under insulated or have 233 00:10:04.039 --> 00:10:07.159 no insulation in those walls. Do the right thing, call 234 00:10:07.200 --> 00:10:09.799 for a free inspection and free quote. You get the 235 00:10:09.840 --> 00:10:11.960 foam in the walls. You will immediately notice the house 236 00:10:12.080 --> 00:10:15.440 is quieter, it is more comfortable. The HVAC system is 237 00:10:15.519 --> 00:10:18.240 evenly distributing far more so than me. You got that 238 00:10:18.320 --> 00:10:20.840 cold room that's at the end of the house, You'll 239 00:10:20.840 --> 00:10:23.399 find that problem solved. And then when the betergy bill 240 00:10:23.480 --> 00:10:25.840 comes and they keep going up, it'll go down. Matter 241 00:10:25.879 --> 00:10:27.440 of fact, it may go down enough to cover the 242 00:10:27.440 --> 00:10:30.600 monthly payment, which is only ninety nine dollars a month 243 00:10:30.679 --> 00:10:34.000 interest free, ninety nine bucks a month. It's a great investment, 244 00:10:34.000 --> 00:10:36.360 a true investment in your home, because once it's paid off, 245 00:10:36.399 --> 00:10:39.320 you continue to enjoy the savings and the comfort. So 246 00:10:39.399 --> 00:10:41.639 take them up on the offer of a free inspection 247 00:10:41.840 --> 00:10:43.960 end quote, and then enjoy the benefits of a twelve 248 00:10:44.000 --> 00:10:46.039 hundred dollars tax credit next year when you're doing your 249 00:10:46.080 --> 00:10:48.679 taxes five one three three eight one three sixty two 250 00:10:48.759 --> 00:10:52.519 six three eight one foam online. It's USA Insulation dot 251 00:10:52.600 --> 00:10:56.279 net fifty five KRC for more information about s eight 252 00:10:56.320 --> 00:11:00.759 nineteen ifify about kerrcdtalk station all or financials. Ran James 253 00:11:00.960 --> 00:11:03.799 joints the program every Monday beginning get eight to a five. 254 00:11:03.840 --> 00:11:06.200 We do a few segments together, talk about money issues 255 00:11:06.240 --> 00:11:11.200 and hopefully get instilling folks some responsible money management. And 256 00:11:11.240 --> 00:11:13.120 we'll get to a little bit more of that next. 257 00:11:13.320 --> 00:11:18.679 But now, Brian, let's start with an acknowledgment from Brian Thomas. 258 00:11:18.799 --> 00:11:21.039 I'll behalf of the Thomas family. We got grocery shopping 259 00:11:21.039 --> 00:11:24.960 every week, right, And I got an Emory Federal Credit 260 00:11:25.039 --> 00:11:28.320 Union credit card, charge your grocer's on the credit card, 261 00:11:28.799 --> 00:11:30.120 and then I paid the bill off at the end 262 00:11:30.120 --> 00:11:30.519 of the month. 263 00:11:30.679 --> 00:11:32.639 Isn't that buy now pay later. 264 00:11:34.200 --> 00:11:36.639 In it roundabout way? Yeah, pretty much is. Yes. 265 00:11:36.879 --> 00:11:41.039 So I've been reading all these articles about buy now, 266 00:11:41.159 --> 00:11:43.360 pay later, and I always thinking to myself, what the 267 00:11:43.360 --> 00:11:45.519 hell is buy now, pay later versus putting on a 268 00:11:45.519 --> 00:11:48.120 credit card. You either pay the balance off or you don't. 269 00:11:49.159 --> 00:11:52.080 Well, the folks who this is affecting are the people 270 00:11:52.120 --> 00:11:55.399 who can't get credit cards because they have not enough fans, 271 00:11:55.519 --> 00:12:00.919 resources or bad credit or so who's off for these plans? 272 00:12:01.639 --> 00:12:01.919 Yeah? 273 00:12:01.919 --> 00:12:02.639 So what these are? 274 00:12:02.639 --> 00:12:06.240 These These are plans being offered directly by by the 275 00:12:06.360 --> 00:12:10.120 companies that you're buying these products from, groceries, electronics, whatever, 276 00:12:10.200 --> 00:12:12.120 whoever's in the mood to do it now. The electronics 277 00:12:12.120 --> 00:12:14.080 companies all that, they tend to do it around Christmas 278 00:12:14.080 --> 00:12:16.840 for obvious reasons. But grocery stores, you know, pretty much 279 00:12:16.840 --> 00:12:18.440 obviously not a very cyclical industry. 280 00:12:18.480 --> 00:12:19.799 We're buying groceries no matter what. 281 00:12:20.200 --> 00:12:22.279 So buy now, pay later is a little bit different 282 00:12:22.320 --> 00:12:23.879 than you know, a lot of people associate with like 283 00:12:23.919 --> 00:12:25.679 payday loans and that kind of thing where I just 284 00:12:25.679 --> 00:12:27.039 need a couple bucks here in a short run, and 285 00:12:27.039 --> 00:12:29.440 you're going to charge me an exorbitant amount of interest. Well, 286 00:12:29.519 --> 00:12:31.159 the card they get to play if you're if you 287 00:12:31.159 --> 00:12:33.399 are a merchant who's going to offer buy now, pay later, 288 00:12:33.679 --> 00:12:35.960 you get to tell people there's no interest involved at 289 00:12:36.000 --> 00:12:36.279 all here. 290 00:12:36.320 --> 00:12:37.559 I'm not going to charge you any interest. 291 00:12:37.600 --> 00:12:39.519 I'm simply going to allow to allow you to pay 292 00:12:39.840 --> 00:12:43.000 for last month's groceries this month, which you know, so 293 00:12:43.120 --> 00:12:47.159 on its face mathematically it doesn't really cost any more. However, 294 00:12:47.519 --> 00:12:49.960 if you're in a situation where you're chronically needing to 295 00:12:50.000 --> 00:12:53.120 take advantage of these types of arrangements, that is just 296 00:12:53.200 --> 00:12:55.799 a blinking, flashing red light to say, hey, something is 297 00:12:55.840 --> 00:12:57.480 going wrong and you're going to need to address it. 298 00:12:57.639 --> 00:13:00.639 These are paycheck to paycheck situations, and if you don't 299 00:13:00.679 --> 00:13:03.120 have the credit card or you don't have any other resources, 300 00:13:03.120 --> 00:13:04.759 then sooner or later you're going to run into a 301 00:13:04.840 --> 00:13:07.360 situation where not only have you gone to the grocery 302 00:13:07.360 --> 00:13:09.840 store like you always do, but also the transmission fell 303 00:13:09.840 --> 00:13:10.720 out the bottom of the car. 304 00:13:10.960 --> 00:13:12.240 What are you going to do at that point? 305 00:13:12.279 --> 00:13:14.320 So it's still a flashing red light to say, hey, 306 00:13:14.440 --> 00:13:16.159 this isn't you don't have any oil in the engine, 307 00:13:16.159 --> 00:13:17.000 This is not going to last. 308 00:13:17.039 --> 00:13:18.279 We need to address things. 309 00:13:18.399 --> 00:13:19.759 Well fair enough to all that. 310 00:13:19.919 --> 00:13:22.679 But much like your initial point is is for folks 311 00:13:22.720 --> 00:13:25.440 who can't get a credit card, that means their credit 312 00:13:25.440 --> 00:13:27.720 score is too bad or they don't I don't understand 313 00:13:27.720 --> 00:13:30.799 the other criteria going to getting credit cards. But why 314 00:13:30.840 --> 00:13:34.240 would some institution who is in the business of profiting 315 00:13:34.279 --> 00:13:38.320 and making money gamble on allowing folks to buy now 316 00:13:38.360 --> 00:13:42.600 and pay later that can't qualify even for a credit card. 317 00:13:42.639 --> 00:13:45.679 They're just guarant they're setting themselves up for people not paying, 318 00:13:45.720 --> 00:13:46.240 aren't they. 319 00:13:46.879 --> 00:13:48.320 Yeah, it's a numbers game, though, Brian. 320 00:13:48.399 --> 00:13:50.000 So in other words, if I'm a grocery store and 321 00:13:50.039 --> 00:13:52.000 I sell pretty much the same stuff as my rival 322 00:13:52.039 --> 00:13:54.200 grocery store, then I might be able to attract more 323 00:13:54.200 --> 00:13:57.080 shoppers by allowing my shoppers to push out their bills 324 00:13:57.240 --> 00:14:00.240 without incurring any interest versus another store that does. It's 325 00:14:00.240 --> 00:14:03.000 simply a way to look more attractive to another shopper. 326 00:14:03.120 --> 00:14:07.000 But I mean, logically and reasonably considering, you're finding a 327 00:14:07.000 --> 00:14:10.080 way to rack up fairly significant losses by attracting those 328 00:14:10.159 --> 00:14:12.320 customers who might not be able to pay their bills, 329 00:14:12.360 --> 00:14:14.120 just in the name of what looking like you're a 330 00:14:14.159 --> 00:14:18.120 little bit better. Margins for grocery stores are single digits. 331 00:14:18.120 --> 00:14:20.399 They don't really make that much money in terms of 332 00:14:20.440 --> 00:14:24.200 overall profit what two, three, four, five percent? Maybe, so 333 00:14:24.600 --> 00:14:27.440 it looks to me like they're jeopardizing their own financial situation. 334 00:14:27.600 --> 00:14:29.519 To me, they can be. 335 00:14:29.559 --> 00:14:31.919 But remember everything, everything is about how much did you 336 00:14:31.960 --> 00:14:34.159 make and how much volume did you generate this month? 337 00:14:34.200 --> 00:14:36.639 Because whatever, if I'm the manager of a grocery store, good, bad, 338 00:14:36.720 --> 00:14:39.480 or indifferent, somebody's going to want to know how much 339 00:14:39.519 --> 00:14:42.720 did my store sell versus, you know, versus the competition 340 00:14:42.840 --> 00:14:45.919 this month. And if I can drive volume, you know, 341 00:14:46.039 --> 00:14:48.759 by simply making it easier for people or making let 342 00:14:48.759 --> 00:14:51.639 me let me rephrase that, making it easier to perceive 343 00:14:52.039 --> 00:14:54.120 that I'm easier to work with because at the end 344 00:14:54.120 --> 00:14:55.679 of the day, we're all paying our bills no matter what. 345 00:14:56.200 --> 00:14:58.039 Then I can potentially drive a little more volume that 346 00:14:58.080 --> 00:14:59.840 makes my store look better. I'm not saying that's the 347 00:15:00.240 --> 00:15:02.159 thing to do. I'm just saying that's where the incentive is. 348 00:15:02.639 --> 00:15:04.960 Well, it just seems to me, the math doesn't work 349 00:15:05.000 --> 00:15:07.799 out because if you're not actually getting the money in 350 00:15:07.960 --> 00:15:11.039 the door, you're merely showing what you sold. The soul 351 00:15:11.120 --> 00:15:13.840 doesn't equate to profit until that bill is paid. 352 00:15:14.639 --> 00:15:15.840 So it's like the. 353 00:15:15.840 --> 00:15:19.600 Stock market reacts to what did you do yesterday? 354 00:15:20.879 --> 00:15:25.080 I'm okay, now, you can't sell me on this one 355 00:15:25.120 --> 00:15:27.679 being a prudent business decision for businesses out there to 356 00:15:27.759 --> 00:15:30.559 go down. But in regardless of that, and for those 357 00:15:30.600 --> 00:15:33.320 folks who may have to pursue this option because of 358 00:15:33.360 --> 00:15:37.679 their the situation, I mean, any any sound recommendations. I 359 00:15:37.679 --> 00:15:39.159 mean the one thing to say, you know, you need 360 00:15:39.200 --> 00:15:41.120 to get a job that pays more. But that's just 361 00:15:41.200 --> 00:15:43.600 not a solution for so many people. I don't understand 362 00:15:43.600 --> 00:15:45.200 where the genuine solution is. 363 00:15:45.240 --> 00:15:48.519 Brian James, Well, no, and again I wasn't saying this 364 00:15:48.559 --> 00:15:49.720 is a prudent business solution. 365 00:15:49.799 --> 00:15:51.480 I'm just saying our incentives are out of whack. 366 00:15:51.720 --> 00:15:54.720 Somebody is leaning on a grocery store to produce more profit, 367 00:15:54.759 --> 00:15:57.320 produce more volume. Just show that you're doing something, and 368 00:15:57.639 --> 00:15:59.720 you know there are surveys out there that yeah show that. 369 00:16:00.279 --> 00:16:02.919 A recent lending Tree survey showed about forty one percent 370 00:16:03.440 --> 00:16:06.279 of buy Now, Pay Later users made a late payment 371 00:16:06.279 --> 00:16:08.519 in the past year. That's up from thirty four percent 372 00:16:08.559 --> 00:16:12.639 this year, so you're right. There are also late fees 373 00:16:12.679 --> 00:16:14.480 and other things there where if you make a late 374 00:16:14.480 --> 00:16:16.399 payment on an arrangement like this, you will pay a 375 00:16:16.399 --> 00:16:18.440 little extra for it, so there's margin in that too. 376 00:16:18.480 --> 00:16:20.759 So in a sense, grocery stores are becoming a lot 377 00:16:20.840 --> 00:16:24.840 like banks. This goes back to the emergency fund discussion 378 00:16:24.879 --> 00:16:26.720 we always have, which is make sure you have one 379 00:16:26.759 --> 00:16:28.360 and you won't be in this situation. 380 00:16:28.039 --> 00:16:30.080 Well, which takes us to our next topic, which is 381 00:16:30.559 --> 00:16:33.480 sadly some people have just given up on saving money. 382 00:16:33.480 --> 00:16:37.279 One more with all were financials Brian James after ay 383 00:16:37.360 --> 00:16:39.759 quick quard or two for my friends at foreign exchange 384 00:16:39.799 --> 00:16:42.600 money issues again talking about money here with foreign exchange, 385 00:16:42.600 --> 00:16:45.360 it's a way to save money. You mind the pennies 386 00:16:45.360 --> 00:16:47.720 of dollars mind themselves. When you're talking about automobile repair, 387 00:16:47.799 --> 00:16:51.200 you're talking dollars, that's for certain, So mind some extra dollars. 388 00:16:51.240 --> 00:16:54.200 Take it to foreign exchange. Westchester locations one. I'm recommending 389 00:16:54.240 --> 00:16:57.840 Tyler's the Legs It off of seventy five East two Streets, 390 00:16:57.840 --> 00:16:59.639 hanging right you're almost there when you pull off on 391 00:16:59.679 --> 00:17:02.120 Tyler's fille rub and you're there to the place where 392 00:17:02.120 --> 00:17:04.119 you're gonna have an a SE certified mechanic work on 393 00:17:04.160 --> 00:17:06.200 your car. You'll get a full warranty on parts and service, 394 00:17:06.200 --> 00:17:08.680 whether your car is from a traditional Asian or European 395 00:17:09.440 --> 00:17:13.079 manufacturer or a Tesla. They do work on teslas now, 396 00:17:13.119 --> 00:17:15.279 so they've all been trained to do with that. They've 397 00:17:15.279 --> 00:17:18.079 got access to your manufacturer's technical information. They do it all, 398 00:17:18.119 --> 00:17:21.480 including software updates and programming, and then walking out with 399 00:17:21.519 --> 00:17:23.519 that full warranty, have more money in your pocket. 400 00:17:23.720 --> 00:17:24.759 It's a pretty good feeling. 401 00:17:24.880 --> 00:17:27.960