Speaker 1: Welcome to another episode of the Chicks on the Right
podcast where we talk to our friend and sponsor of
the shows, Act Abraham from Bulwart Capital Management. Today or
I think today, maybe within the last couple days. Anyway,
Matt Walsh posted a headline from money Wise which has
got a lot of people conversing, and so we're going
to do the same thing. So the headline reads, millions
of US boomers are refusing to give their eighty four
trillion dollar in real estate wealth away to their adult kids.
Here's why and what it means for the economy. And
apparently part of the why at least is that forty
five percent of those baby boomers say I want to
enjoy my money for myself while I'm still alive. And
Matt Walsh has a huge problem with this because he
believes that the entire point of wealth is to take
care of your kids.
Speaker 2: What are your thoughts. I tell Matt Walsh that be
my guest, Go use your money, take care of your kids, right,
you know, free markets, making your own decision. I mean,
he doesn't sound that much different than a socialist, honestly.
Speaker 3: Right, I agree?
Speaker 1: No, just look telling people what to do though.
Speaker 2: Oh no, well, from from his from his perch of
moral superiority as well. Right, because he's the only one
that's got it all figured out. I would just say, look,
generally speaking, I kind of like, you know, I think
about my money the way I do my body gets
your hands off it, right, Why are you telling me
how to spend my money or what the moral you know,
organization of my fund? Like, I, okay, you do it
that way. I don't care, you know that? Being said?
That being said, would I handle it exactly that way?
Probably my job is not to I want to put
my children in a position to where they are not disadvantaged,
you know what I'm saying. Yet I do not believe
it's a moral imperative for them to live the same
lifestyle that me and their mother did. Why me and
my mother made choices that they might not make, right, Like,
I'll look at them and go, hey, did you work
sixty to seventy hours a week building something that you
didn't know was going to turn into anything and invest
every single cent of your life on it. Well, if
you didn't do that, then you probably don't deserve to
live that lifestyle. So if you did, I have zero
interest in helping you finance something you didn't earn, right,
So I think that there's I think this gets back
to this whole baby boomer discussion that's become really popular,
you know what I mean, like blaming the baby boomers
for all the financial ills. And I think I think
that there is like most things in our culture today,
I think that that conversation, I think there's some merit
to it, and I think that there's some I think
there's some some meat there. I just think everybody's expressing
it in the wrong terms. Meaning, look, by boomers were
the largest generation of all time, coming you know, and
not even close, right, and so and coming of age
in the dawn of the technological age, where so many
different things were changing, and therefore so many of our practices,
so many of our institutions, and so many of our
laws ended up reflecting the interests of a generation. But
that was going to happen regardless of who that generation was, right,
And it's a byproduct of living in a democracy, meaning whoever,
like wait, maybe they were going to be super conservative,
maybe they were going to be super liberal. Maybe whatever,
whoever baby boomers were, they were going to have an
amount of like un previously seen or experienced sway for
one generation in the democratic process because there were so
many of them, right, So, if you wanted to win
an election for the last thirty years, you had to
throw things out that were beneficial to the boomers. And
like most generations, and a lot of the boomers didn't.
But a lot of people vote for things that are
immediately expedient to them, right, and so of course, so
I kind of feel like the people having the critiques
of boomers. I mean it's fair, right because, like, look
at what's happened in national debt as the boomers have
taken over, you know, control the economy. Again, I think
whoever did that would have seen an explosion in national
debt regardless, right, So anyway, but I think it's a
classic case of one of the things that you can't.
I think one of the things that frustrates me the
most about our country today and the most about so
many of these political debates, is that nobody believes two
things can be true at the same time. Right, Like,
it's do you think the boomers suck? Or are they
the best people that ever walked to face the earth?
And you're like, well, like most generations I think it's
probably a mix. Right, so you know, oh, yes, this
one evil generation. Oh oh I didn't really great, My god,
the aliens care yeah yeah, they were like enough for
that guy. So you know, even the computers like get
him out of here. Right. But but and I just
I think it's so bizarre when you start telling people
what is like, I want to look at Matt Walsh
and go, So you think it's your job to feather
your kids nests and give them wealth that they didn't earn.
Speaker 3: Well, I think it's I think you brought up an
interesting concept. You said, it's kind of like being a socialist.
And when you talk to socialists if they say they
should tax the rich, but they need to be taxed
more bluff.
Speaker 2: Okay, what's the figure?
Speaker 3: So like, can you give me an actual monetary figure
of what that means to you to tax the rich
because it's never freaking enough. So seeing, I think the
same concept applies here because Matt has pissed that. You know,
I guess boomers aren't taking care of their kids, but
they're enjoying their wealth that they earned themselves for themselves,
and so he's like they need to like, hey, they're
a fair share? Well, what is that fair share? Is
it buying your kids a house? Is it buying cars?
Is it paying for education? Is it?
Speaker 2: What is it?
Speaker 3: Or is it literally giving them a salary every month
to live on? I need to understand because I don't
because to me, it's like where does where does it end?
Like what's the line? Because I think that people, at
least nowadays, young people are looking at a lotti and
not all of them. Some young people look at boomers
and they think they need to give me, like they're
so selfish. They should be giving me x y Z. Yeah.
Speaker 2: Why well why do tell you that? Yeah? Yeah, they
should be. They should be giving me wealth. And I
just here's the other problem with what Matt Walsh is saying.
The numbers disagree with what he's saying, meaning boomers are
financing their children to a level that no other generation has.
That's just a fact. So when you look at what
the average boomer is helping out kids, the number of
them that are helping out their kids, it's higher across
the board, it's higher across the board. And you can
actually make an argument. Now, I look again, I don't
want to get involved in telling people how to spend
their money, regardless of what side it's on. But you
could make an argument that giving away kids money is
actually making things less affordable. Right, kids are having money
to spend on houses and things that the otherwise wouldn't have,
you know so, And that's why these conversations I hate them.
Whenever we're trying to find and you see this happen
all the time, and it makes sense because of the
way people's brains work. But they see things that aren't working,
and it's like we're looking for the silver bullet, right,
who's to blame? Who's the bad guy? And they're like, guys,
go study history. What you'll see is it's never one thing, right,
It's a things come together that create cocktails, and different
currents come at different times in history and create unique happenings.
And we've got to deal with those things. And the
other thing is the world isn't static, right, We're going
to have new issues and new things to overcome, and
this is certainly one of them. But I don't think
advocating for like we I will my wife and I
God willing, will we help our kids out? Well? If
we yes, if we need to, we will certainly help
them out, Like, if they're making the right decisions and
housing is really unaffordable, will I help them purchase a home? Yeah,
I can definitely see myself doing that. My wife and
I have discussed it. But not because they deserve a home.
I don't believe in that. I think everybody deserves their
own home. Nonsense.
Speaker 3: And hopefully your kids and hopefully your kids aren't like, oh,
mom and dad are going to buy me home so
I don't have to work.
Speaker 2: As hard too. Like that.
Speaker 3: That's where I've because I grew up with a lot
of kids who were trust friend kids and like had
a lot of their parents are wealthy, and they you know,
they gave them stuff. And I got to tell you,
those those people are losers now.
Speaker 2: I know, and I want I want my children to
have the I want them to experience the thrill in
the excitement of achievement totally. It's not the stuff. That's
the other thing we live in this today that tells us, yes,
the stuff is what the benefit is and it's you know,
it sounds so corny, and it sounds easy for a
guy like me that can buy a lot of that stuff.
It sounds easy for me to say it but it
really is the truth. Man. You look back and the
work and the striving and the scary times and the
nights without sleep, and you, in a weird way, the
journey really is the gift itself and you and the
freedom it provides you that is to be cherished the
stuff you get with it. You know, you talk to
anybody that's had any serious level of success that you
know gets to a financial place where they're capable of
buying more than they need and unless there's really unless
they're kind of bent or something's wrong with them, you know.
I universally they all look at you and go, look,
it's wonderful to have more than you need. At the
same time, I don't buy nearly as much as that
stuff because it's just not as fulfilling as I would
have thought it would be, you know.
Speaker 3: And I always get irritated when I see like people
or this is such a flex for parents when they
get on social media and you're like, we just bought
Sally a brand new BMW for her sixteenth birthday, and
it's like, Sally's not gonna want to work for anything
if she has I don't have a brand new bm
Like this is like I look at that, I think
that is just such a silly thing to do. Like
that's wonderful that you have lots of money, but it's
not a flex to give your sixteen year old car
that you see what I'm saying, Like.
Speaker 2: It's yeah, but it usually means they've got lots of payments,
is what it usually dost a lot of money, right.
Speaker 3: But that's the thing is like, didn't you when you
were a kid and you were working, because I know
you're an entrepreneur, like we're entrepreneurs. It's one of those
things where you get to like you want to work
for things. So when you finally get that thing. If
somebody would have handed me a brand new something when
I was sixteen, I would have not understood the value
of it. You see what I'm saying.
Speaker 2: It's not, of course not. I mean, we we just
got my daughter, what is it, like a twenty twenty
one first cards and it's way nicer than anything I had.
Speaker 3: But it's right, yeah, that's how we feel.
Speaker 2: Her with like fifty thousand miles on its super sick
well and she's gonna be able to drive it forever,
four wheel drive, all that kind of stuff. But even that.
I mean, first of all, they ain't as cheap as
they used to be. The thing is, no, but me
and me and me and my wife were having a conversation. Look,
she's my baby girl. When she's I want her to
be in something safe, something that's reliable, all that kind
of stuff. But I also don't want it so nice
to wear. It's her first luxury car, right like, I
want it to be something where, like you know, it's
a significant step below me and mom's car, and it
gives her something still to reach for. Because we've seen
some of these friends where the kids are driving around
in brand new, hundred thousand dollars cars. Yeah, yeah, right,
Oh my god. Thankfully she's not friends with a lot
of those kids. Because for me, when I see that,
all I see and I'm not trying to step on
any toes out here, all I'm not. That's not about
the kid at that point. That's about the parent wanting
totally totally right, and they're using the kid as like
a coat hangar to display their robes, you know, or whatever.
And I just i'm I think that's not I just I.
Speaker 1: Think too, when like when Matt Walsh makes these sort
of blanket statements that it's pure selfishness, and I think
a lot of I would I would think that there
are baby boomers out there who are hoarding their wealth
to some degree because they also fear living to a
point where they're going to need care that they don't
want to be burdened onto their children. And so I
feel like, you know, I don't know what the I
haven't read the whole article that he posted, but I
feel like there's more to it than just people being
like I want to buy like a brand new boat
every year.
Speaker 2: I think it's about that. That's a great point. It's
easy to say.
Speaker 3: That when you're in your thirties, you know you're right
and you've never been faced. Listen, hit fifty and like
get out of bed and have an ailments because you've
had a sleep related injury. You start realizing your body
falling apart. And that is such a great point that
I think.
Speaker 1: Long term care it's like what ten to fifteen thousand
dollars a month, it's excel. If you're affarding your money
because you worry that you might be living into your
nineties and you don't want to move in with one
of your kids because that would be like a huge
burden on them. I mean, I don't blame a single
person for saving for that sort of thing.
Speaker 2: It's funny you say that, because one of the things
that I counsel all of our clients on is I go, guys,
it's like Maslow's hierarchy of needs, meaning when we're planning
for retirement, we must take care of Your first job
in retirement is to make sure that we can pay
your lifestyle so you're not a burden to your children. Yeah,
that's the first thing that we throw on, right, and
then we work down from there. If we want to
get into legacy planning, all of that comes after those
things are covered, right, right, And I remind them of
that all the time, because I'm like, listen, five years
from now, if we do things this way, your financial
picture could be substantially different to where we can do
all the above. Okay, but if we go down this
path right now, we're seriously risking the chance that none
of it will be accomplished. Right. Not only will you
not be able to give any money to the kids,
but you won't be able to pay your own lifestyle. Yeah. Right,
So let's let's not play the game of financial Well,
let's play the game of good financial dominoes, meaning we
can do this, you know, but as the money allows.
And let's not make one off emotional decisions, and let's
not listen to people telling us what their moral superior
belief is on how we should handle our wealth. The
other thing too, I'll just tell you I'm a big
I'm a big believer in you know, setting some money
aside so the kids. I love the Warren Buffett adage
where he said I want to leave my kids enough
money to where they can do something cool with it.
I don't want to leave them enough to where they
they don't have to do anything. Yes, right, exactly right,
And I and I just I love that image. Like
you know, will help you do this if you're making
the right decisions. But you know, our plan, I'll just
our plan is to have some of those provisions for
our kids. And like I said, God willing, because I'm
only forty four, who knows what work you know, the
world will look like thirty five years from now or whatever.
But but our plan is to sit there and go, hey,
we'll give you each this, but the majority of it's
going to go away to charities and in different places
like that, because my job, your job is not to
sit on a beach and live a life of luxury
based on what I.
Speaker 3: Did right, exactly right, And that is I think that
is the big point here, That is the big thing away.
Speaker 2: I just don't think that. Yeah, yeah, I don't think
it's good. I don't think it's I don't I think
it's good for anybody to enjoy the fruits or the
late or the fruit of somebody something they did not
labor for.
Speaker 3: It's disincentivizing all that obviously needs you as a financial planner.
Speaker 2: So does everybody? Look? Everybody? Look look at that.
Speaker 3: I wasn't even trying to transition.
Speaker 2: I honestly think you should actually call you.
Speaker 3: Yeah I did, so good?
Speaker 2: Well, Matt, he's out there. The problem is that Matt
kind of struck me as a guy that would call
me and try to explain to me why I was
run to Would you know what I mean? I'm not
calling for your help. I'm going to call it square.
Your way can tell you what to do exactly.
Speaker 1: So where can people find you?
Speaker 2: Yes? Okay, so yeah, it's super easy. You can listen
to our podcasts every single day. We readdress everything that
happened in the world of politics and finance that's applicable.
That's Know Your Risk Podcast. You can find it on YouTube,
but also Know Your Risk Podcast dot com Borworcapitalmanagement dot
com if you want to set up a meeting with
or a call consultation with me or one of our
advisors Borgcapitalmanagement dot com. Not hard to find and yeah easy,
easy to find us. Great, Thank you, Zach, Thank you,
Thank you, ladies. Investment advisory services offered through Trek FINANCIALOC
and SEC Registered Investment advisor. 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. 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. Track twenty four three zero
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