Speaker 1: You are summer ice chests of information.
Speaker 2: It's essential to know what's going.
Speaker 1: On inside KARC the talk station.
Speaker 2: Eight o five the fifty five krceeding talk station.
Speaker 3: Happy Monday by the time as right here, always looking
Speaker 3: forward to this segment because we get to hear from
Speaker 3: all Worth Financials Brian James talk Money Matters. You call
Speaker 3: it Money Monday with Brian James. Welcome back, Brian Hope.
Speaker 3: You had a nice weekend.
Speaker 2: Good morning, nice hot, sweaty weekend, as we've become used
Speaker 2: to over the past several weeks.
Speaker 3: Well, I know my grass is as high as an
Speaker 3: elephant's eye. Coming back to Oklahoma. The music, well, I
Speaker 3: gotta get the grass cut and keeps raining on me. Anyhow,
Speaker 3: moving away from that and talk about matters financial. Oh, now,
Speaker 3: I know Trump's been complaining about the FED chair. Uh,
Speaker 3: he wants interest rates lower. Powell says no, obviously hasn't
Speaker 3: lowered the interest rates. Jerome Powell currently head of the Fed. Now,
Speaker 3: Trump has already said he wouldn't fire Powell. Powell said
Speaker 3: he'd never leave the job absent die. So we have
Speaker 3: until May. I guess there's going to be a natural
Speaker 3: changing in of the guard next May.
Speaker 2: Yeah, May have twenty twenty six. And let's not forget
Speaker 2: that Trump himself did a point this particular FED shair,
Speaker 2: which is kind of funny. He was a comment from
Speaker 2: President Trump the other day last week sometime that he
Speaker 2: was surprised when he was appointed. Well the words came
Speaker 2: out of your mouth. So yeah, not sure exactly where
Speaker 2: that surprise comes from, but anyhow, Yeah, so he's he's
Speaker 2: pushing for pushing for a replacement. Trump says he will
Speaker 2: not remove him that. Well, we'll see if that, if
Speaker 2: that actually sticks, but that doesn't mean we're not gonna
Speaker 2: go ahead and have the conversation about who might replace
Speaker 2: in May of twenty six when this current term is up.
Speaker 3: Right, he did quite a few names being thrown around,
Speaker 3: and Scott be Sent for example, is one of them.
Speaker 3: But he's happy where he is as the Treasury secretary,
Speaker 3: so he's already said no, I don't want the job.
Speaker 3: But beyond that, we could talk about some of the
Speaker 3: other names they were thrown around. But let's as a
Speaker 3: fundamental thing, if Powell was out, whether he got fired
Speaker 3: or he died or he quit, just because you name
Speaker 3: a new chairman of the FED doesn't mean, they're going
Speaker 3: to lower interest rates, does it right?
Speaker 2: And the the problem is that President Trump super super
Speaker 2: super once interest rates to come down, and he has
Speaker 2: he said that all through his first term, and he
Speaker 2: said that all through the campaign, and of course he's
Speaker 2: still trumpeting those ideas. Those are that's obviously an extremely
Speaker 2: business friendly proposition. If rates are lower, then it's cheaper
Speaker 2: to do business, and we would get an immediate pop
Speaker 2: in the stock market, a little bit, possibly a little
Speaker 2: bit of a sugar high. Because the concern behind that,
Speaker 2: and the reason we don't necessarily want to do this,
Speaker 2: is because that can quickly trigger inflation, which we've just spent, however,
Speaker 2: many years trying to tamp down from from the COVID process.
Speaker 2: So at this point, the concern is that if he
Speaker 2: if he is able to get what he wants by
Speaker 2: simply putting a puppet or a mouthpiece in there, then
Speaker 2: that the long term chaos that could come out of
Speaker 2: that would be pretty dangerous in terms of overall inflation spikes. Plus,
Speaker 2: the FED has always been famously independent politically. Yeah, that's
Speaker 2: one of the one of the departments that really has
Speaker 2: not been impacted by politics so much. There is a
Speaker 2: little bit of history there. Nixon got involved in it,
Speaker 2: and it did create some chaos and inflation and played
Speaker 2: a role in the stagflation era of the seventies. So
Speaker 2: there is precedent we can look at to see what
Speaker 2: happens when we get too much political control. But you know,
Speaker 2: historically that area has stayed relatively free of political interference.
Speaker 3: Well, I recall Carter screaming at yelling about Paul Vulkar
Speaker 3: because he one of the interest rates lowered back when
Speaker 3: Vulkar was head of the chair ahead of the FED,
Speaker 3: and Vulker refused to relent. So the other way on it. Yeah, exactly,
Speaker 3: We've been down this road before. So I appreciate the
Speaker 3: independence of the FED. Now, how independent is the FED
Speaker 3: chair in decision making because there are all kinds of
Speaker 3: you know, governing board members, they all have a say
Speaker 3: in it. Or is the chairman exclusively responsible for making
Speaker 3: the decision?
Speaker 2: Well, the buck stops with the chairman, but of course
Speaker 2: there's a lot of input from the various FED governors
Speaker 2: and who are regional as well as the board itself.
Speaker 2: And matter of fact, Trump is trying to stay ahead
Speaker 2: of that too as well by saying not only should
Speaker 2: should should chair Powell step down, he should also remove
Speaker 2: himself from the board so that we don't have a
Speaker 2: situation of a shadow chair. So there's I'm sorry there
Speaker 2: was Scott percent that said that, but regardless, though, the
Speaker 2: whole point is they want Jerome Powell's opinion out of
Speaker 2: the mix entirely. So yes, there is a lot of input,
Speaker 2: but at the end of the day, the decision rests
Speaker 2: with the chair.
Speaker 3: Well, this is a direct impact on treasury bills, right, Oh,
Speaker 3: of course, yeah, I mean treasury builded. The Fed will
Speaker 3: set rates.
Speaker 2: We know how that works, right, They'll come out and
Speaker 2: they say rates go up, We're going to up a
Speaker 2: quarter percent, up a half percent, down, a quarter percent, whatever.
Speaker 2: But the market has an impact too, and because the
Speaker 2: market will, of course try to anticipate and I'm referring
Speaker 2: to the bond market here, the bond market will try
Speaker 2: to anticipate what the moves are going to be. And
Speaker 2: so for example, you know, one of the popular things
Speaker 2: that people want to pay attention to this for is
Speaker 2: because maybe you're in a situation where you bought a
Speaker 2: house in the last three four years and you're paying six, seven,
Speaker 2: maybe even eight percent on a thirty year mortgage. Obviously,
Speaker 2: that's something that's not the norm. We're happier when we're
Speaker 2: in the three to four percent range there. I'm not
Speaker 2: sure we're all low way down there again, but the
Speaker 2: lower the better. But you want to look at the
Speaker 2: ten year treasury that's what most mortgage mortgage rates are tracking.
Speaker 2: So the Federal Reserve will make the moves too, but
Speaker 2: the market will also anticipate which way bonds are going
Speaker 2: to go, and that itself can have impact on what
Speaker 2: where interstrates are going to go.
Speaker 3: But you got to look past the veneer of a
Speaker 3: lower mortgage rate, don't you, Because you mentioned inflation being impacted.
Speaker 3: When the rates come down, you worry about inflation. There
Speaker 3: could be a spike and business activity gets generated, et cetera.
Speaker 3: But people keep talking about, gosh, we want the interest
Speaker 3: rates lower because I want a lower interest rate from
Speaker 3: my home. Now, that's all well and good if you're
Speaker 3: going to refinance and stay where you are, but that's
Speaker 3: not going to increase the stock of housing. In fact,
Speaker 3: we can you consider inflation the lower it is the
Speaker 3: charge to borrow money, the rate at which you borrow.
Speaker 3: It seems like the demand would go up, putting upward
Speaker 3: pressure on the price of a home. Yes, absolutely, and
Speaker 3: we haven't had that much downward Prince right. All stories
Speaker 3: we hear kind of anecdotal stories about how there's less activity,
Speaker 3: fewer housing starts, that kind of thing, but the prices
Speaker 3: have not yet dropped. That's how strong the demand has been.
Speaker 3: So yes, you're absolutely right. I think I think it
Speaker 3: depends on what situation you're in. If you already bought
Speaker 3: a house, then you really really want a rate cut
Speaker 3: so you can refinance, because you heard all the awesome
Speaker 3: stories when you were younger of the prior fifteen twenty,
Speaker 3: when refinancing was something you did every six months, you know,
Speaker 3: on date night, you.
Speaker 2: Know, go out for dinner after work. It was just
Speaker 2: a regular routine. But on the other hand, if you
Speaker 2: are shopping for a house, you may not want that.
Speaker 2: You arguably might even want rates to tick up higher,
Speaker 2: so it'll finally break the back of housing demand and
Speaker 2: things will pull back a little bit. Now, all of
Speaker 2: those are a very short term in nature, and it
Speaker 2: really just depends on what your own individual situation is.
Speaker 2: But these are all things. Unfortunately, we will not have
Speaker 2: a perfect situation somebody's going to end up on the
Speaker 2: short end.
Speaker 3: Of the stick clearly. Now moving away from just the
Speaker 3: housing industry because you know the obviously that's governed purely
Speaker 3: by supply and demand. If there's not enough houses out there,
Speaker 3: the price is going to go up. It's the greatest
Speaker 3: illustration you can have of that. What about other areas
Speaker 3: of the how it would impact from an inflationary standpoint,
Speaker 3: other areas of businesses generally speaking, Why is it that
Speaker 3: a lower interest rate we would have an inflationary reaction
Speaker 3: Outside of the housing market.
Speaker 2: It generates a lot more hats being thrown in the ring.
Speaker 2: So in other words, if rates are low, that means
Speaker 2: I can get money for cheaper than I could before.
Speaker 2: And the best type of money to invest with is
Speaker 2: somebody else's. So that's where you hear about all these
Speaker 2: things about companies borrowing to invest or or you know,
Speaker 2: the fabulously wealthy set borrows against their holdings and simply
Speaker 2: wants to pay down the debt rather than liquidate those
Speaker 2: actual holdings to pay for their bills. And this is
Speaker 2: something the average person gets to do. But that is
Speaker 2: we've set up a system in this country where that
Speaker 2: is a very profitable thing to be able to take
Speaker 2: advantage of. So that generates a lot more activity, and
Speaker 2: it it generates just people going out and doing things
Speaker 2: and buying more products and so on and so forth
Speaker 2: because they're cheap, especially now, because we will when that happens, Brian,
Speaker 2: we will convince ourselves of scarcity. These rates that aren't
Speaker 2: going to stay low forever. I better do things right now.
Speaker 2: We saw this with products and imports in the first
Speaker 2: quarter of the year, where we saw a big spike
Speaker 2: in imports in anticipation of the character coming. Yeah, so
Speaker 2: anticipation will itself drive prices up.
Speaker 3: Well, you know, you've got an opportunity to borrow for less.
Speaker 3: Of course you're gonna jump on that. That makes perfect sense. Now,
Speaker 3: let me just get a comment or two from you
Speaker 3: on this comical notion that you need a what is it,
Speaker 3: two and a half billion dollar Reserve office upgrade? Yeah?
Speaker 2: What the hell this one? It really feels like this
Speaker 2: is one that you know, the government is operating out
Speaker 2: of buildings at one hundred and fifty two hundred years old,
Speaker 2: so I'm sure they need upgrades and things here and there.
Speaker 2: But yeah, two and a half billion dollars low on
Speaker 2: the price the end. However, Jer Powell, it hasn't ever
Speaker 2: been someone who is a ostentatious, look at me type
Speaker 2: of a person. So I can't I can't simply lay
Speaker 2: the blame at his feet to say that this was
Speaker 2: a mistake from the beginning. It does really seem to
Speaker 2: be what's what is anything? Go find anything that we
Speaker 2: can point at him and point out the weakness of him.
Speaker 2: And I'm speaking of you know, those who are on
Speaker 2: the warpath to get rid of him. Sure, if that's
Speaker 2: what they came up with, I'm feeling a little more
Speaker 2: confident about Chair Powell.
Speaker 3: No, and I'll agree with you all day long on
Speaker 3: that conclusion. And I don't I personally. I know Trump's
Speaker 3: been pointing the finger of Powell over this renovation cost,
Speaker 3: but to me, it exists beyond who's responsible for making
Speaker 3: the decision two and a half billion dollars. It's I know,
Speaker 3: you can build a brand new Bengals stadium for that
Speaker 3: kind of money.
Speaker 2: Yeah, absolutely, And there seems to be obviously, we need
Speaker 2: a lot more context behind this to understand exactly where
Speaker 2: that face. I cannot imagine Chair Powell spends a lot
Speaker 2: of time looking at marble samples. With the job that
Speaker 2: he has, I'm pretty sure there are people to do this,
Speaker 2: and I have a feeling that kind of came out
Speaker 2: of left field when he realized he was going to
Speaker 2: have to have a bigger opinion on it and be
Speaker 2: more vocal than than he had.
Speaker 3: Well, you know, you'd expect some measure of fiscal responsibility
Speaker 3: from the head of the FED. That's all I'm saying.
Speaker 3: You know that's fair, that's a fair assessment. I just
Speaker 3: yell out loud. I'm putting my foot down. There's no
Speaker 3: way of office renovations should ever cost this much. You're
Speaker 3: going to get lesser expensive chairs. Live with it. It's
Speaker 3: say fifteen right now, more with Brian James speaking of
Speaker 3: Tariff's solid earnings report masking tariff volatility. That's subject coming
Speaker 3: up next. I hope you can stick around.
Speaker 4: Fifty five KRC the talk station. How here's a Channel
Speaker 4: nine first morning. What the forecast. There's a floatwatch going
Speaker 4: on out there. It ends at.
Speaker 3: Eleven this morning. Any rain in the area of the
Speaker 3: predictable end around two pm if you've got it today,
Speaker 3: mostly cloudy, high of eighty two to be clear. When
Speaker 3: I'm sixty five for the low not as human tomorrow
Speaker 3: nice on that note, sunny, and eighty five for the high.
Speaker 3: Clear sky is overnight down to seventy three all the
Speaker 3: way up to ninety one on Wednesday with mostly sunny
Speaker 3: skies seventy four. Right now, let's get a traffic update.
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Speaker 1: They talk station.
Speaker 3: Hey nineteen fifty five kir CD Talk station Happy Monday,
Speaker 3: Monday Monday with Brian James from All with Financial. Let's
Speaker 3: talk about earnings. Says earnings beats might mask tear of
Speaker 3: volatility these two weeks. And I'm looking at the Wall
Speaker 3: Street Journal top of the scroll there Dow Jones SMP
Speaker 3: and Nasdaq all ticking up at about a quarter percent up,
Speaker 3: so futures are up this morning. Headline, Front page, Wall
Speaker 3: Street General, the US economy is regaining its swagger, evidence mounting.
Speaker 3: The companies and consumers who held back during the spring's
Speaker 3: tariff chill are starting to splurge again. And yet we
Speaker 3: have Donald Trump saying he's going to implement some new
Speaker 3: tariffs beginning August first, most notably in the European Union,
Speaker 3: a minimum of fifteen to twenty percent tariffs. So I'm
Speaker 3: having a difficult time reconciling what all this actually means.
Speaker 3: Brian James. It seems like we got good information over here,
Speaker 3: but oh my god, those evil tariffs are coming. And
Speaker 3: is that going to change people's buying habits? Are people
Speaker 3: going to stop buying? I doesn't seem to be bothering
Speaker 3: anybody right now anyway, Brian.
Speaker 2: Yeah, it's not really spooking the herd. And we've been
Speaker 2: through this before, of course. In early April that was
Speaker 2: the first round of all the tariff chaos, and the
Speaker 2: market took an absolute beating, dropping in some cases close
Speaker 2: to twenty percent depending on the index you're looking at.
Speaker 2: And so we're going through this again. However, the headlines
Speaker 2: are no different. It's the same headlines. We're picking on
Speaker 2: a country and here's a percent number that we're going
Speaker 2: to throw out of them, and we're going to give
Speaker 2: them a deadline, the same thing we did in April.
Speaker 2: But the market is now used to this. So where
Speaker 2: we're looking at now August first, a fifty percent tariff
Speaker 2: on copper imports. This is purportedly for national security reasons.
Speaker 2: This is mostly gonna hit Chile with a significant impact
Speaker 2: of construction, electronics, auto energy. You know, it used to
Speaker 2: be that copper was used in plumbing and construction. That
Speaker 2: was kind of it. But now just about everything we
Speaker 2: touch nowadays, since everything has to have data moving across it,
Speaker 2: copper is just everywhere.
Speaker 1: So copper is.
Speaker 2: Almost a better indicator of overall economic activity than crude oil.
Speaker 2: Kind of crude oil used to be the more the
Speaker 2: more oil we buy, the more activity we must have.
Speaker 2: Well now it's copper. And so there's gonna be a
Speaker 2: fifty percent tariff coming on August first, depending on how
Speaker 2: those other countries react, and thirty percent on EU and Mexico.
Speaker 2: And that's that one's I think probably the most well
Speaker 2: known that we've got hanging out there, although with Mexico
Speaker 2: some of the USMCA compliant goods might sneak out of that,
Speaker 2: and then on again twenty five to thirty five percent
Speaker 2: on Canada, Japan, South Korea, and a few more so
Speaker 2: August first, that's the we're playing chicken right now. We'll
Speaker 2: see who's going to swerve here in a week or so.
Speaker 3: So the goal of the tariff, like, for example, copper,
Speaker 3: we buy the copper right, we need it here. We
Speaker 3: don't have a giant copper mind where we're manufacturing our own.
Speaker 3: So there is an idea to reshore American copper production.
Speaker 3: It's just to teariff the country that we're buying it from. Correct, Yeah,
Speaker 3: the only.
Speaker 2: Way that we can. If if we could find something
Speaker 2: in our own dirt that did the same thing that
Speaker 2: copper did, but you know, maybe even better, then we
Speaker 2: would do that instead. We wouldn't be talking about tariffs.
Speaker 2: We would throw it out here. But some things we
Speaker 2: simply cannot produce at home.
Speaker 1: Now.
Speaker 3: In so far as Chilean copper production, we're okay, we
Speaker 3: can get it now. It's going to be fifty percent
Speaker 3: more when the tariff goes in effect, what are we
Speaker 3: asking from them that we would harm ourselves so much
Speaker 3: because there is such a huge demand for copper. Brian James, Well.
Speaker 2: We are simply asking, we're asking them to pay up.
Speaker 2: You want to do business here, We're and we're kind of,
Speaker 2: you know, taking a flyer on this, thinking that we
Speaker 2: are such a big market. We're just throwing our weight around.
Speaker 2: We are. The United States is the largest market by far,
Speaker 2: not even close to many many other markets that might
Speaker 2: be buying these products, and we're we're simply looking for
Speaker 2: a better deal. It's really no different than we used
Speaker 2: to We used to hear the stories about, uh, you
Speaker 2: kind of still do about Walmart driving small mom and
Speaker 2: pop shops out of business, uh, because they were looking
Speaker 2: for every to save every possible penny they possibly could.
Speaker 2: They're the biggest, you know, the biggest knife in the drawer,
Speaker 2: so they're going to use their weight. That's the same
Speaker 2: thing the United States is doing here across all these countries.
Speaker 2: All right.
Speaker 3: Well, another thing I saw in this report that you
Speaker 3: provided to me some it looks like pretty good news
Speaker 3: to me. Upbeat to start to the earning season helped
Speaker 3: to quell off these tariff fears. Around eighty three percent
Speaker 3: of the S and P five hundred companies that are
Speaker 3: reported earnings have exceeded expectations. That's pretty damn good, right there, Brian.
Speaker 2: It is we're on a good run. And uh and
Speaker 2: this is uh, you know again, this is what we're
Speaker 2: What we always talk about here is what did the
Speaker 2: analyst think was gonna happen versus what did happen. And
Speaker 2: we talked about this last week, you and I did
Speaker 2: with a handful of different companies. But this week it's
Speaker 2: out Alphabet, which owns Google and YouTube, stronger than first
Speaker 2: quarter growth. On Thursday, Intel was up. So it was
Speaker 2: a lot of technology stocks this week. And again those
Speaker 2: are the ones that benefit a lot from Copper with
Speaker 2: all the data houses and things that they have to
Speaker 2: build out there. So we're just continuing this role of
Speaker 2: companies being in a good spot and earning more than
Speaker 2: that cost them to sell their products, which is the
Speaker 2: core of everything we want to do. And so that's
Speaker 2: a sign of a stable economy. Inflation is currently not
Speaker 2: an issue. I agree with President Trump there. It is
Speaker 2: currently as we're sitting here, not an issue. Some of
Speaker 2: the decisions he would prefer that we make may with
Speaker 2: regards to tariffs as well as interest rate decisions that
Speaker 2: he would very much like to see Fed Chair Powell
Speaker 2: put in place that could trigger inflation. Those are concerns
Speaker 2: and the market is a little bit hesitant on that.
Speaker 2: That's why we haven't seen it going through the roof.
Speaker 2: It's up a little bit every day, which is good,
Speaker 2: but at the same time, we haven't seen any huge
Speaker 2: spikes that you might normally expect when we have such
Speaker 2: positive earning reports coming out.
Speaker 3: All right, Unlike copper, which is obviously a mandated necessary
Speaker 3: you know, you can't live without it type of item.
Speaker 3: Given all of the applications you put copper in. What
Speaker 3: is it that we buy from the European Union that
Speaker 3: is a must have item like copper. I mean, I
Speaker 3: understand lumber coming from Canada that impacts housing. You gotta
Speaker 3: have lumber, Gotta have copper for the pipes, gotta have
Speaker 3: copper for the electrician, electritricity transmission lines, et cetera. You
Speaker 3: can't do without it. Honestly, as much as I love Scotch,
Speaker 3: I can do without it. If the price goes up
Speaker 3: too high, I just won't buy it. So it's discretionary
Speaker 3: versus mandatories. Where really the rubber hits the road, and
Speaker 3: what are we getting from Europe that we consider mandatory
Speaker 3: or desperately needed.
Speaker 2: Yeah, well, well, obviously, you know, Scott's deliveries to the
Speaker 2: West side of Cincinnati are a major major indicator that
Speaker 2: we watch to see, you know, exactly what's going on
Speaker 2: between our relationships there. But now a lot of pharmaceuticals,
Speaker 2: medicinal products that's about one hundred and twenty seven billion
Speaker 2: dollars last year, a lot of nuclear equipment, boilers, engines,
Speaker 2: things like that. And then of course there are vehicles
Speaker 2: Mercedes BMW that there's still plenty of those on the
Speaker 2: road over here. So it's much more industrial types of
Speaker 2: things that's happened to be based elsewhere. But again, pharmaceuticals
Speaker 2: are being the bigger one. Think of companies like Sanofi
Speaker 2: and Bayar And we know we do not manufacture a
Speaker 2: lot of our own drug share. That's one of the
Speaker 2: things the current administration would like us to.
Speaker 3: Yeah, well, maybe we'll have some activity in that direction.
Speaker 2: Let's pause.
Speaker 3: When Brian James back about picking the right financial planner,
Speaker 3: he's biased in that regard being a financial planner eight
Speaker 3: twenty five right now fifty five KCD talk station.
Speaker 1: Fifty five KRC service.
Speaker 2: To America doesn't end when they're general nine.
Speaker 1: First warning weather forecast. Got some rain.
Speaker 3: There's a floodwatch in a fact that it ends at
Speaker 3: eleven this morning. All the showers are storing possibilities and
Speaker 3: around two pm eighty two are high today with clouds
Speaker 3: over night. Clear sky is sixty five and mostly sunny.
Speaker 3: Clear day tomorrow, fortunately not as humid, going up to
Speaker 3: eighty five degrees. Clear sky's over night seventy three sunny. Yeah,
Speaker 3: it will be sunny and also hot on Wednesday with
Speaker 3: a highest ninety one degrees seventy four. Now, let's get
Speaker 3: a traffic.
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Speaker 5: on fifty five kr se E Talk Station.
Speaker 3: A twenty nine ifif you have KRCD Talks Station one
Speaker 3: more segment with Brian James f Whileworth Financial a financial
Speaker 3: planner he is, so let's talk about financial planning. It's
Speaker 3: really important to have someone in your corner working on
Speaker 3: your side of the table and not for somebody else
Speaker 3: when it comes to financial planning. Isn't that a premier
Speaker 3: thing to think about when you're looking for a financial planner?
Speaker 2: Brian James, Well, yeah, and you're right, I am a
Speaker 2: little bit biased here. There's a reason I chose to
Speaker 2: get into this industry. And if the topic is what
Speaker 2: we look for in a financial advisor, you want to
Speaker 2: make sure that you're you're gonna learn something right. You
Speaker 2: don't need the old approach. You know from twenty thirty
Speaker 2: forty years ago, was somebody who can sell me some
Speaker 2: kind of product. And I remember my dad and his
Speaker 2: uncles and my uncles trading these these these people they
Speaker 2: knew and it was always whoever got them the most
Speaker 2: recent you know, good good hot stock tip. This is
Speaker 2: in the eighties when there was really nothing more than
Speaker 2: I want to throw money into something and watch it grow.
Speaker 2: There wasn't a lot of thought of how do I,
Speaker 2: how do I plan for taxes, how do I you know,
Speaker 2: put all the puzzle pieces together. So you want to
Speaker 2: make sure you're talking to somebody who is who is
Speaker 2: going to teach you something, who's gonna look at your
Speaker 2: situation and show it to you from a different point
Speaker 2: of view, so that you can think about things that
Speaker 2: you hadn't thought about before.
Speaker 3: That's really the key, Okay, And I think one of
Speaker 3: the things that's always recommended by financial planners is get
Speaker 3: a handle on what you spend money on throughout the year.
Speaker 3: That's actually become a lot easier because you know, I'll get,
Speaker 3: for example, from my master card at the end of
Speaker 3: the year, I break down month to month and categories
Speaker 3: about everything that I use my credit card for. It's
Speaker 3: it's very eye opening, but it makes it really east
Speaker 3: easy to figure out how much you charge in a
Speaker 3: year and that you can apply to your once and
Speaker 3: your what your needs might be in retirement.
Speaker 2: Yeah, that could become one of your goals, and that
Speaker 2: should be one of your goals. Obviously we all have
Speaker 2: our own ships. We need to keep a float. That's
Speaker 2: where everything starts. And once you've got a handle on
Speaker 2: what your current cash flow is and you kind of
Speaker 2: nailed it if you're using credit cards, I think that's
Speaker 2: a great idea. By the way, if you're somebody who's
Speaker 2: responsible with credit cards, then get your rewards, pick something
Speaker 2: that works for you, and then use the tools that
Speaker 2: the credit card companies provide. But not everybody looks at.
Speaker 2: They're buried in that website somewhere. Every time you swipe
Speaker 2: that card, whatever that is is going to get categorized
Speaker 2: as a restaurant, as a gas station, as whatever. So
Speaker 2: you'll know exactly what it costs you just to keep
Speaker 2: that ship afloat. Then, in addition to that, there are
Speaker 2: other things you're doing. You've got a mortgage, you've got
Speaker 2: some other things. There are places like Duke that don't
Speaker 2: allow you to use your credit card. You're going to
Speaker 2: look at your checking account for that. But that'll give
Speaker 2: you your basic, your baseline of here's how much an income
Speaker 2: we need to just keep the ship afloat. On top
Speaker 2: of that, you can layer the things that you'll want
Speaker 2: to do in retirement because you have more time. Perhaps
Speaker 2: that's more travel, or maybe it's supporting the kids, grandkids,
Speaker 2: so on and so forth.
Speaker 3: All right, and obviously things change over time. You hopefully
Speaker 3: maybe once you reach retirement, don't have a mortgage that
Speaker 3: you have to pay for.
Speaker 2: Well, it can be a decision, right, if you're somebody
Speaker 2: who's you've got one of those two and a half
Speaker 2: three percent mortgages, then you may want to maintain them.
Speaker 2: Matter of fact, I would advise maintaining that, just make
Speaker 2: the cash flow work for you. And some people a
Speaker 2: lot of people hesitate on that because we kind of
Speaker 2: get in our heads that well, someone else has to
Speaker 2: give me money so that I can survive. Therefore my
Speaker 2: entire budget has to be squished into my Social Security check. Meanwhile,
Speaker 2: I'm going to ignore the two million dollar nest egg
Speaker 2: that I've set aside. Rather than paying off the mortgage
Speaker 2: in a lump, which would probably cost you a good
Speaker 2: amount of taxes by liquidating the resources you would need
Speaker 2: to do that, then simply start taking at least that
Speaker 2: mortgage payment out. Just take it out on a monthly basis,
Speaker 2: five days before the mortgage payment is due. All you've
Speaker 2: done is build a money machine and then Again, this
Speaker 2: is if you've got one of those two and a
Speaker 2: half three percent mortgages, then maybe needs another five to
Speaker 2: ten years to get paid off. Now a different situation
Speaker 2: if you just move somewhere and l three four years.
Speaker 2: Now you've got a you know, a twenty five years
Speaker 2: left on a six percent mortgage. That's a different discussion.
Speaker 2: But again, this is where a financial advisor can help
Speaker 2: you see the impact of paying it all off in
Speaker 2: a lump or perhaps meeting the middle ground and paying
Speaker 2: a little more so that it's only got seven years
Speaker 2: versus fifteen or something like that.
Speaker 3: Fair enough, And I know one of the points in
Speaker 3: the article about choosing a financial planner, and this person's
Speaker 3: initial you know, is walking through the process of arranging
Speaker 3: with the financial planner paragraph caption. Advisors aren't just for
Speaker 3: rich people. You will meet with people just starting out
Speaker 3: in their careers, but they don't have a giant stack
Speaker 3: of two hundred thousand dollars that they're ready to invest.
Speaker 2: Correct, Brian, Absolutely, we'll talk to anybody because the education
Speaker 2: part of that's frankly what I enjoy the most. That
Speaker 2: doesn't mean we necessarily have to have a formalized relationships necessarily,
Speaker 2: But a lot of times all people really need is
Speaker 2: some basic understanding. And I'll have many meetings with my
Speaker 2: client's kids who are just getting started, and they hit,
Speaker 2: you know, they hit on the big topics of I'm
Speaker 2: putting money in my four one k am I putting
Speaker 2: in enough? How do I decide whether to put money
Speaker 2: on the traditional side versus the roth side? And should
Speaker 2: I pay off this mortgage? There is a notion that
Speaker 2: I shouldn't have any debt. All debt is evil? Should
Speaker 2: I pay off this mortgage? Should I spend you know,
Speaker 2: twenty years not saving anything because I want to get
Speaker 2: this house paid off? The answered that is a hard no.
Speaker 2: We got to do a little bit of everything. But yes,
Speaker 2: some of these things are basic, just understanding what is
Speaker 2: the impact of long term savings and what should I
Speaker 2: expect out of the market in terms of ups and downs.
Speaker 2: If I can arm somebody with that and they go
Speaker 2: off for thirty years, they'll come back with a much
Speaker 2: bigger puzzle for me to solve.
Speaker 3: Yeah, and I know we've had this conversation before going
Speaker 3: back to the mortgage. Yeah, I did have a like
Speaker 3: like three percent mortgage but ended up paying extra each
Speaker 3: month to get it paid off. I hate debt, and
Speaker 3: a mortgage to me is just one more debt I
Speaker 3: owe somebody money. I don't like being in that position.
Speaker 3: I know I could have made more in the market
Speaker 3: had I left the market, like to you guys, to
Speaker 3: invest or something more than the three percent that I'm
Speaker 3: being charge in interest. But just from a comfort standpoint,
Speaker 3: I'm that weird guy that I just I can't bide
Speaker 3: owing someone money man now.
Speaker 2: And there's a I wouldn't call that weird. That's just
Speaker 2: it's just a point of view, and there's nothing wrong
Speaker 2: with it. I also happen to know that you have
Speaker 2: a financial advisor behind you, and I know you went
Speaker 2: through the process of, Okay, if we pay it off sooner,
Speaker 2: the mortgage goes away sooner in our in our overall
Speaker 2: assets look like this, versus if we if we simply
Speaker 2: let it all go and pay off the mortgage as
Speaker 2: minimally as possible, looks like that. And then you made
Speaker 2: an educated decision that you were more comfortable with with
Speaker 2: not having the mortgage in place, And that is perfectly
Speaker 2: This is a perfectly rational way to do it. It's
Speaker 2: not always about what what's the biggest number that falls
Speaker 2: out of the bottom of the spreadsheet.
Speaker 3: Well, and the smartest thing you can do from a
Speaker 3: financial standing standing plan point. Standing our financial planning standpoint, Brian,
Speaker 3: out kick your coverage with your choice of spouse.
Speaker 2: That is that I've done that as well myself, and yeah,
Speaker 2: that is a huge impact. If you're on the same
Speaker 2: page with regard to money.
Speaker 3: Amen to that, Brian. Jay is always a pleasure to
Speaker 3: have you on the program. Appreciate all with financial loaning
Speaker 3: out for the segments, and I look forward to next Monday,
Speaker 3: another edition of Money Monday.
Speaker 2: Have a good week, stay cool and you do the same.
Speaker 3: Eight thirty five Right now fifty five KRCIT Talk Station.
Speaker 3: We'll talk to Deb Deb fromotor Exits should be on
Speaker 3: next talk about how awesome those products are. So hang
Speaker 3: on right back.
Speaker 2: This is fifty five KRC and iHeartRadio station.