WEBVTT 1 00:00:00.120 --> 00:00:00.560 Folks. 2 00:00:01.280 --> 00:00:04.759 We are uncovering truth here Clay Travis and Buck Sexton 3 00:00:04.919 --> 00:00:08.279 today at noon, which will result in live. 4 00:00:08.199 --> 00:00:11.960 Tears like fifty five KRC Talkstation. 5 00:00:14.279 --> 00:00:17.519 Ato six if afty five KRC E talkstation ain't very 6 00:00:17.519 --> 00:00:19.519 Happy Monday to you, Brian Thomas about to be back 7 00:00:19.559 --> 00:00:21.600 to work. Did enjoy my time off? Happy new Year 8 00:00:21.640 --> 00:00:24.719 to all, and I'm so happy it's a new year 9 00:00:24.760 --> 00:00:26.879 and we're still doing money Monday with Brian James from 10 00:00:26.879 --> 00:00:29.559 Aulworth Financial. Welcome back, Brian, Happy new year to you. 11 00:00:30.239 --> 00:00:32.719 Happy new year, and happy first snow day of the year. 12 00:00:32.759 --> 00:00:34.719 And all the kids and some workers out. 13 00:00:34.799 --> 00:00:36.560 It's a hell of a snow day too, isn't it, 14 00:00:36.600 --> 00:00:37.560 Brian Lord Almond? 15 00:00:37.640 --> 00:00:39.320 This is a whopper. Have you seen this in a 16 00:00:39.399 --> 00:00:40.079 very long time. 17 00:00:39.960 --> 00:00:43.200 That really long time. I know we've got a couple 18 00:00:43.200 --> 00:00:45.399 of topics you provided and we're going to get to those. 19 00:00:45.439 --> 00:00:47.079 And I don't think I'm throwing you much of a 20 00:00:47.079 --> 00:00:50.000 curve ball, since you are a financial planner. But I 21 00:00:50.039 --> 00:00:51.880 had a couple of things I just wanted to bring up, 22 00:00:51.920 --> 00:00:56.600 and I was inspired by my own personal experience. I 23 00:00:56.600 --> 00:00:58.479 get my credit score, you know, I know what it is, 24 00:00:58.560 --> 00:01:01.320 and there was an article on the Wall Street Journal. 25 00:01:01.399 --> 00:01:04.239 I believe it was from yesterday, one man's attempt to 26 00:01:04.239 --> 00:01:07.840 get a perfect eight to fifty credit score, and rather 27 00:01:07.920 --> 00:01:11.799 interesting article. And I not bragging or anything, but there 28 00:01:11.840 --> 00:01:13.680 was a period of time where I did enjoy a 29 00:01:13.760 --> 00:01:16.480 perfect credit score for a while, and lo and behold, 30 00:01:16.519 --> 00:01:19.879 I launched the app to find my credit score and 31 00:01:19.879 --> 00:01:22.560 it dropped down by like, I don't know, twelve points 32 00:01:22.640 --> 00:01:26.760 or something. Nothing in my life had changed, nothing, All 33 00:01:26.799 --> 00:01:29.000 my bills are paid, you know, I got all these 34 00:01:29.040 --> 00:01:33.680 perfect everything's perfect, Everything's perfect. Then they suggestion on the 35 00:01:34.120 --> 00:01:36.200 I don't know if his equifacts or whatever it was, 36 00:01:36.959 --> 00:01:41.239 I don't have enough credit card accounts. In other words, 37 00:01:41.519 --> 00:01:45.480 they want me to have more available credit in spite 38 00:01:45.519 --> 00:01:47.200 of the fact that all my bills are paid and 39 00:01:47.239 --> 00:01:50.200 I've got enough available credit to cover my family's basic 40 00:01:50.280 --> 00:01:52.879 needs and probably another family down the streets basic needs. 41 00:01:53.079 --> 00:01:56.000 What the hell is with credit scores? And why don't 42 00:01:56.040 --> 00:01:58.319 they let people know? And they don't, as the article 43 00:01:58.359 --> 00:02:02.000 points out, they keep all this quiet. It's they said, 44 00:02:02.000 --> 00:02:05.599 the algorithms they assigned people are proprietary, so you don't 45 00:02:05.599 --> 00:02:08.319 even know. And so the article goes over all these 46 00:02:08.319 --> 00:02:12.400 different you know, you know the contortions this one guy 47 00:02:12.560 --> 00:02:14.680 went through in an effort to get an eight to 48 00:02:14.719 --> 00:02:18.199 fifty credit score, and it just it was out. It 49 00:02:18.240 --> 00:02:19.919 was insane what he went through to try to do it, 50 00:02:19.919 --> 00:02:21.680 and he ultimately was able to do it just by 51 00:02:21.719 --> 00:02:25.719 maintaining a certain like teeny weeny percentage of some kind 52 00:02:25.800 --> 00:02:29.240 of balance on his various credit cards. Does it really 53 00:02:29.360 --> 00:02:32.319 matter once you get over and you're in that higher level? 54 00:02:32.360 --> 00:02:34.719 Does it matter? Should have concern anybody? And do you 55 00:02:34.800 --> 00:02:38.120 know anything about credit scores and how they come up 56 00:02:38.159 --> 00:02:39.960 with them? Brian, I hate to put you on the spot, 57 00:02:40.000 --> 00:02:40.960 but this kind of irks me. 58 00:02:41.759 --> 00:02:42.360 No, not at all. 59 00:02:42.520 --> 00:02:44.680 And I've got clients who bring up these questions as well. 60 00:02:44.759 --> 00:02:46.879 Matter of fact, I have clients and there are frequent listeners. 61 00:02:46.879 --> 00:02:49.000 They may hear me say this, who had the same 62 00:02:49.080 --> 00:02:51.439 experience that you did and had that eight point fifty 63 00:02:51.479 --> 00:02:54.319 for that one brief shining moment, printed it out, brought 64 00:02:54.319 --> 00:02:56.400 it into me so we could celebrate, and then they 65 00:02:56.400 --> 00:02:58.439 framed it, hung it on the wall. So I think 66 00:02:58.479 --> 00:03:01.680 it shortly after that went went. But to answer your question, 67 00:03:02.240 --> 00:03:04.400 these are great questions, but at the same time, once 68 00:03:04.439 --> 00:03:07.120 you're over, really seven point fifty, You're not going to 69 00:03:07.159 --> 00:03:09.759 get anything more special than you know, for being over 70 00:03:09.800 --> 00:03:11.599 eight hundred or or you know, even up of that 71 00:03:11.599 --> 00:03:13.840 eight to fifty range, there really aren't there. There isn't 72 00:03:13.879 --> 00:03:16.400 a you know, a special green room for people with 73 00:03:17.080 --> 00:03:20.439 super high credit scores, So it doesn't matter that much 74 00:03:20.479 --> 00:03:22.280 once you're Once you're at that range, you can kind 75 00:03:22.280 --> 00:03:25.319 of get what you need. But yeah, so question for 76 00:03:25.360 --> 00:03:27.599 you though, did did they did you did they specify 77 00:03:27.719 --> 00:03:30.719 that they thought you should have more actual credit card 78 00:03:30.759 --> 00:03:33.520 accounts or do they think you should have more credit 79 00:03:33.560 --> 00:03:35.919 available meaning higher limits and lower balances? 80 00:03:36.159 --> 00:03:38.400 Well, I didn't see anything but the limits. They gave 81 00:03:38.439 --> 00:03:42.439 me a specific number. I think I have, I guess 82 00:03:42.599 --> 00:03:45.719 ten specific accounts that they were able to identify within 83 00:03:45.800 --> 00:03:49.960 this list of whatever is an approved account credit or otherwise, 84 00:03:50.319 --> 00:03:53.159 and then I should have more like fifteen to twenty 85 00:03:53.280 --> 00:03:57.400 or something. It's just I'm like this, this seems vast awkwards, 86 00:03:57.400 --> 00:03:58.199 if you know what I mean. 87 00:03:59.400 --> 00:04:02.719 Yes, and the algorithm that algorithm, like all algorithms, changes 88 00:04:02.759 --> 00:04:05.039 all the time because they're after whatever it is that 89 00:04:05.080 --> 00:04:07.719 they're after. But at the same time that the really 90 00:04:07.759 --> 00:04:10.520 the important things, you know, if you wanted that last 91 00:04:10.599 --> 00:04:11.840 marginal few points. 92 00:04:11.599 --> 00:04:12.560 To get you to the eight fifty. 93 00:04:12.639 --> 00:04:14.879 Then yeah, that's probably what you would need. 94 00:04:14.879 --> 00:04:17.680 And that algorithm that you're asking to tell you to 95 00:04:17.720 --> 00:04:19.920 give you advice on what else do I need is 96 00:04:19.959 --> 00:04:22.759 really reaching to the bottom of the barrel for the ideas. 97 00:04:22.759 --> 00:04:24.360 And that last bit is the number of accounts. 98 00:04:24.399 --> 00:04:27.079 It sounds like, yeah, apparently, so it just seems just 99 00:04:27.120 --> 00:04:30.360 so so stupid. If you don't need the additional credit, 100 00:04:30.399 --> 00:04:34.079 then why would you want it available? So I don't 101 00:04:34.120 --> 00:04:38.319 know anyhow, And along those lines, I just want to 102 00:04:38.319 --> 00:04:41.319 bring this up because in case people aren't aware in 103 00:04:41.439 --> 00:04:45.040 terms of credit, my wife just got I don't know, 104 00:04:45.319 --> 00:04:48.279 a col statement or something. We don't even shop there anymore, 105 00:04:48.639 --> 00:04:51.120 but it was an announcement that their interest rate is 106 00:04:51.160 --> 00:04:57.920 now north of thirty percent. Thirty and it was one 107 00:04:57.959 --> 00:05:01.439 of several cards, you know, it was some other small 108 00:05:01.480 --> 00:05:04.079 retail that we don't ever use. But I mean your 109 00:05:04.319 --> 00:05:07.000 thirty percent interest rate, Brian, that's insane. 110 00:05:08.199 --> 00:05:10.199 This is insane, and it tells you exactly who they're 111 00:05:10.240 --> 00:05:13.120 shooting for. They are truly, truly hoping that you will 112 00:05:13.160 --> 00:05:15.839 forget about it. Because remember the way a credit card works, 113 00:05:15.879 --> 00:05:18.000 it has a grace period too. So as soon as 114 00:05:18.079 --> 00:05:21.160 you swipe that card and you rack up a month's 115 00:05:21.199 --> 00:05:23.360 worth of expenses, you're gonna get your statement and then 116 00:05:23.399 --> 00:05:26.040 you've got usually twenty five maybe twenty eight days. It 117 00:05:26.079 --> 00:05:28.959 can waiver around there somewhere, but that's how much time 118 00:05:29.000 --> 00:05:31.560 you've got to get that paid off. What they're after, 119 00:05:31.759 --> 00:05:34.680 they're after the small percentage of people who are gonna 120 00:05:34.720 --> 00:05:37.040 forget to make that payment and pay that statement off. 121 00:05:37.360 --> 00:05:39.920 Most people do. Most people get their rewards and run away. 122 00:05:39.920 --> 00:05:42.120 And I know you and I both play that game. Yeah, 123 00:05:42.120 --> 00:05:43.800 but there are a handful of people out there who 124 00:05:43.839 --> 00:05:45.759 will not make that payment, and they'll go, I'll get 125 00:05:45.800 --> 00:05:48.680 it next year. And if you annualize the interest that 126 00:05:48.720 --> 00:05:52.439 you're paying on those accounts, you are simply paying an 127 00:05:52.560 --> 00:05:54.600 enormous amount of money for the privilege to owe a 128 00:05:54.680 --> 00:05:55.399 bank money. 129 00:05:55.920 --> 00:05:56.279 Yeah. 130 00:05:56.360 --> 00:05:58.759 Well, and again I only bring it up in case 131 00:05:58.759 --> 00:06:01.319 people are not paying a ten because apparently, I guess 132 00:06:01.360 --> 00:06:03.920 they can adjust these interest rates in any damn well 133 00:06:03.959 --> 00:06:05.720 time they please, or maybe they have to do at 134 00:06:05.759 --> 00:06:07.160 the beginning of the calendar year. I don't know what 135 00:06:07.160 --> 00:06:09.160 the rules are that apply to these credit card company 136 00:06:09.160 --> 00:06:13.199 are credit cards, but man't pay close attention, because I mean, 137 00:06:13.279 --> 00:06:14.920 let's face it, if you could find a credit card 138 00:06:15.000 --> 00:06:18.160 that only charges twenty percent versus one that charges thirty, 139 00:06:18.199 --> 00:06:19.879 you know which one you should be using if you're not, 140 00:06:20.040 --> 00:06:22.160 if you're going to carry a balance. But it's still 141 00:06:22.240 --> 00:06:25.079 it's like the word usery comes to mind. 142 00:06:25.800 --> 00:06:27.839 Yeah, and and well i'd also add based on that 143 00:06:28.319 --> 00:06:30.439 thought process, And I know you don't really think this way, 144 00:06:30.480 --> 00:06:32.560 but if you're really looking at the interest rate, if 145 00:06:32.560 --> 00:06:35.120 you're comparing the interest rate across credit cards, then you're 146 00:06:35.160 --> 00:06:38.800 probably using credit cards incorrectly. If you've got a situation 147 00:06:38.879 --> 00:06:40.480 where you've got a balance on one of them, then 148 00:06:40.519 --> 00:06:43.160 you need to be looking for a balance transfer opportunity. 149 00:06:43.360 --> 00:06:45.759 Sometimes those are zero percent for twelve to eighteen months 150 00:06:45.759 --> 00:06:48.319 something like that. But if you've got a significant balance, 151 00:06:48.519 --> 00:06:50.680 I would say that twenty percent is truly no better 152 00:06:50.680 --> 00:06:51.360 than thirty percent. 153 00:06:51.439 --> 00:06:52.399 It's all way too high. 154 00:06:52.480 --> 00:06:53.519 It is way too high. 155 00:06:53.800 --> 00:06:55.439 All right, Well, let's. 156 00:06:56.800 --> 00:06:58.959 I'm tempted to take an early break, Joe. Can we 157 00:06:59.000 --> 00:07:00.480 take an early break because we can go to the 158 00:07:00.519 --> 00:07:02.879 two topics afterwards, or you want to just dive into 159 00:07:02.920 --> 00:07:04.240 part of the first one, or how do you want 160 00:07:04.279 --> 00:07:06.920 to work it? Okay, Brian, We're gonna take an early break, 161 00:07:06.959 --> 00:07:08.800 a couple minutes early because I don't want to start 162 00:07:08.879 --> 00:07:11.879 either one of the topics we have remaining, because I'm 163 00:07:11.879 --> 00:07:13.920 afraid we'll not have enough time in the segment to 164 00:07:13.959 --> 00:07:16.000 do it. So let's pause it. We'll bring Brian James 165 00:07:16.040 --> 00:07:17.879 back to talk a super sized limit for four to 166 00:07:17.959 --> 00:07:21.519 one k's and Trump's proposed tariffs could cost some US 167 00:07:21.560 --> 00:07:24.480 companies those two subjects next. It's eight thirteen right now, 168 00:07:24.560 --> 00:07:26.759 fifty five K see the talk station. I'll be right 169 00:07:26.800 --> 00:07:33.759 back fifty five the talk station. Jud just said it's bad. 170 00:07:34.639 --> 00:07:37.399 Don't get on the roads. You can avoid it. Brian James. 171 00:07:37.439 --> 00:07:37.680 Money. 172 00:07:37.680 --> 00:07:41.560 Money is Brian James from Allworth Mancher. We're talking well finances, 173 00:07:41.759 --> 00:07:43.759 and I want to do the second one first. This 174 00:07:44.319 --> 00:07:47.920 I am more confused having read the new four to 175 00:07:47.920 --> 00:07:50.399 oh one K rules after the USA Today article I 176 00:07:50.480 --> 00:07:53.240 just finished reading than I was when I started reading. 177 00:07:53.240 --> 00:07:55.279 It. 178 00:07:55.319 --> 00:07:57.800 Is the average human being supposed to understand how much 179 00:07:57.839 --> 00:07:59.519 money they can contribute to a four to one K 180 00:07:59.639 --> 00:08:02.879 given all the different breakdowns and subcategories and categories we 181 00:08:02.959 --> 00:08:05.240 have here in terms of you know, annual four oh 182 00:08:05.279 --> 00:08:08.160 one K savings and catch up contributions. I mean, this 183 00:08:08.279 --> 00:08:12.439 is baffling, but the number I'm reading here, can someone 184 00:08:13.199 --> 00:08:15.439 in any of these age groups that apply save up 185 00:08:15.439 --> 00:08:19.279 to thirty four thousand, seven hundred and fifty dollars for 186 00:08:19.399 --> 00:08:22.160 retirement next year in a four oh one K, then 187 00:08:22.199 --> 00:08:25.680 well that would be this year. The answer is yes, yes, 188 00:08:25.720 --> 00:08:29.439 apparently right. So honestly, this is all all the confusion, Brian, 189 00:08:29.560 --> 00:08:32.440 is job security for me? If the Irs ever made 190 00:08:32.519 --> 00:08:35.120 things simple, or if Congress ever, you know, kind of 191 00:08:35.159 --> 00:08:37.679 tried to work a little harder to make things put 192 00:08:37.720 --> 00:08:39.000 things in English, then I don't. 193 00:08:38.799 --> 00:08:39.200 Have a job. 194 00:08:39.279 --> 00:08:42.480 So let's go over where we were so we can 195 00:08:42.480 --> 00:08:44.639 talk about what the changes are. Twenty twenty four, if 196 00:08:44.679 --> 00:08:46.279 you had a four oh one K, then you were. 197 00:08:46.559 --> 00:08:48.200 Everybody under the sun who had a four to oh 198 00:08:48.200 --> 00:08:50.919 one K could put in twenty three thousand dollars. Whether 199 00:08:50.960 --> 00:08:53.360 that's wroth or traditional four oh one K didn't matter. 200 00:08:53.720 --> 00:08:55.360 It didn't matter what your age is. The limit for 201 00:08:55.519 --> 00:08:58.399 everybody was twenty three thousand. If you were over fifty. 202 00:08:58.440 --> 00:09:00.759 We've had something called the catchup that's been around for 203 00:09:00.799 --> 00:09:03.480 a long time. That was an additional seventy five hundred. 204 00:09:03.559 --> 00:09:06.080 So in twenty twenty four, somebody fifty plus could put 205 00:09:06.080 --> 00:09:09.720 away thirty thousand, five hundred dollars new for this year 206 00:09:09.879 --> 00:09:11.720 is a super ketchup contribution. 207 00:09:11.879 --> 00:09:13.879 Another flavor for everybody to remember. 208 00:09:14.159 --> 00:09:17.639 If you are age sixty to sixty three, instead of 209 00:09:17.679 --> 00:09:20.159 seventy five hundred, you get to put in the thirty 210 00:09:20.200 --> 00:09:23.279 four thousand and seven to fifty. So now you're at 211 00:09:24.279 --> 00:09:26.840 the twenty three for everybody twenty three and a half. 212 00:09:26.879 --> 00:09:29.240 That is actually the standard limit went up by five 213 00:09:29.320 --> 00:09:32.159 hundred bucks to twenty three thousand, five hundred. Those over 214 00:09:32.279 --> 00:09:36.120 sixty but under sixty three or under sixty four rather 215 00:09:36.200 --> 00:09:39.039 are allowed an additional eleven two point fifty. That's a 216 00:09:39.080 --> 00:09:41.799 total of thirty four to seven fifty. If you're sixty 217 00:09:41.840 --> 00:09:45.799 four or turning sixty four this year, you don't get it. 218 00:09:46.080 --> 00:09:49.320 So this is the other confusing part. What old ketchup 219 00:09:50.080 --> 00:09:52.519 job security again, Brian, job security for me? Right, let's 220 00:09:52.519 --> 00:09:53.639 talk about what's important here. 221 00:09:54.159 --> 00:09:56.480 So what I. 222 00:09:58.519 --> 00:10:00.799 Mean, the older you get, the more life it is 223 00:10:00.879 --> 00:10:03.120 you should be able to get it. I mean usually 224 00:10:03.120 --> 00:10:06.399 your highest income earning years are older. So why would 225 00:10:06.519 --> 00:10:09.120 someone who's sixty five and still gainful employed and not 226 00:10:09.159 --> 00:10:10.720 be able to chuck board a four oh one. K. 227 00:10:10.879 --> 00:10:13.240 If that's what they want to do, you. 228 00:10:13.159 --> 00:10:15.799 Would have to ask your friendly neighborhood actuary as to 229 00:10:15.840 --> 00:10:17.320 why this was a good idea. So what you've just 230 00:10:17.399 --> 00:10:21.639 pointed out is the Ketchup contribution applies two different times 231 00:10:21.639 --> 00:10:24.039 in your life. Currently, it applies from ages fifty to 232 00:10:24.080 --> 00:10:26.679 fifty nine, and then from sixty to sixty three you 233 00:10:26.720 --> 00:10:29.799 have the super Ketchup. And then currently, from when you 234 00:10:29.879 --> 00:10:31.559 become sixty four and older, you go back to the 235 00:10:31.600 --> 00:10:34.759 old Ketchup super Ketchup. Does that understand? Does that help 236 00:10:34.799 --> 00:10:35.320 you understand that? 237 00:10:35.720 --> 00:10:38.840 I mean, I do have an understanding of it. It 238 00:10:38.919 --> 00:10:42.879 just doesn't make any sense when you practically talk about 239 00:10:42.879 --> 00:10:45.720 it in real life. You know, terms like wait a second, 240 00:10:45.799 --> 00:10:48.399 how come it's you know, up to sixty four and 241 00:10:48.440 --> 00:10:51.240 that shuts off after age sixty four. Someone explained that 242 00:10:51.320 --> 00:10:52.480 to me, and I know you're not going to be 243 00:10:52.519 --> 00:10:55.399 capable of or in a position to do that, but 244 00:10:56.440 --> 00:10:58.960 super Ketchup. That sounds like the thing you buy at Costco, 245 00:10:59.080 --> 00:11:01.600 the giant size, as opposed to the regular. 246 00:11:01.639 --> 00:11:03.159 The generic version of the Ketchup. Yep. 247 00:11:03.240 --> 00:11:05.120 Well, and the other thing is now this will apply 248 00:11:05.279 --> 00:11:09.639 to me, since I am fifty nine. I turned sixty 249 00:11:09.720 --> 00:11:14.600 in September. I still qualify for this age sixty through 250 00:11:14.679 --> 00:11:18.879 sixty three super ketchup because I turned sixty in the 251 00:11:18.879 --> 00:11:19.679 calendar year. 252 00:11:20.679 --> 00:11:22.559 That is correct. But you will you will be sixty 253 00:11:22.600 --> 00:11:23.519 by twelve thirty one. 254 00:11:23.639 --> 00:11:26.759 Therefore this is a super ketchup year, not the regular 255 00:11:26.840 --> 00:11:28.360 ketchup for you, the good kind. 256 00:11:31.320 --> 00:11:34.840 Okay. And I know there's a WROTH provision in here too, 257 00:11:34.960 --> 00:11:39.120 but roths are only available to people within certain income levels. 258 00:11:39.120 --> 00:11:43.720 Correct, that's correct. Yeah, so that's kind of correct. Here's 259 00:11:43.720 --> 00:11:44.639 another fun thing too. 260 00:11:44.679 --> 00:11:48.200 So, yes, there is an income limitation on ROTH contributions, 261 00:11:48.960 --> 00:11:51.279 and that's in the range for the perry, depending on 262 00:11:51.320 --> 00:11:53.120 how you know, whether you're married, whether you're single, so forth. 263 00:11:53.120 --> 00:11:54.879 It's in the range of say two hundred thousand dollars 264 00:11:54.879 --> 00:11:58.320 something like that. But the fun thing there is that 265 00:11:58.960 --> 00:12:02.960 you can do what's called a backdoor WROTH conversion because 266 00:12:03.000 --> 00:12:07.200 there are no income limitations on converting traditional or pre 267 00:12:07.320 --> 00:12:11.440 tax assets from a pretax IRA to a WROTH. So 268 00:12:11.559 --> 00:12:15.120 the trick there is you make a non deductible traditional 269 00:12:15.200 --> 00:12:17.559 IRA contribution. This is not new, This is an old thing, 270 00:12:17.759 --> 00:12:20.519 been around for a while make a non deductible traditional 271 00:12:20.519 --> 00:12:24.120 IRA contribution and then immediately convert that, and then you 272 00:12:24.159 --> 00:12:26.480 wind up with the exact same result. So if you may, 273 00:12:26.480 --> 00:12:28.639 if you're married, you make over two hundred one thousand dollars, 274 00:12:28.879 --> 00:12:33.039 then you are not able to make a roth IRA contribution. However, 275 00:12:33.399 --> 00:12:36.919 you can make a pre tax non deductible contribution and 276 00:12:36.960 --> 00:12:39.879 then convert that and get the exact same outcome. And 277 00:12:40.120 --> 00:12:42.360 what's really crazy about this, Brian, this was this started 278 00:12:42.399 --> 00:12:44.840 off as a loophole, but eventually the IRS said, yeah, 279 00:12:44.840 --> 00:12:46.120 you know what, you guys, this is fine, go ahead 280 00:12:46.159 --> 00:12:47.960 and keep doing it. So rather than just removing the 281 00:12:48.000 --> 00:12:51.480 income limitation on a WROTH contribution, they've simply said that 282 00:12:51.480 --> 00:12:53.399 if you file a couple more pieces of paper on 283 00:12:53.440 --> 00:12:55.600 your IRA, you can get the same end result. 284 00:12:56.679 --> 00:13:01.200 God, that is so insane. And you know you call 285 00:13:01.240 --> 00:13:04.279 it a loophole. If it's written that way, I don't 286 00:13:04.279 --> 00:13:07.080 consider the loophole. I mean I consider that the intended 287 00:13:07.120 --> 00:13:09.799 consequence of any legislation that comes down the pike, because 288 00:13:09.840 --> 00:13:12.879 they wrote it that way the extent they didn't consider 289 00:13:13.080 --> 00:13:15.960 something one way or another. It's not you know, it's 290 00:13:16.000 --> 00:13:19.240 not illegal or anything, but it's just something that's built 291 00:13:19.240 --> 00:13:22.039 into the tax provisions or in this particular case, ira 292 00:13:22.039 --> 00:13:22.799 A provisions. 293 00:13:24.360 --> 00:13:31.279 Ryan just anyway, why on Monday morning it is all 294 00:13:31.360 --> 00:13:32.960 of this out for the listening public. 295 00:13:33.120 --> 00:13:35.399 It is well, talk to your financial planner. To the 296 00:13:35.399 --> 00:13:38.799 extent you don't have one, I recommend getting one. Anyhow, 297 00:13:39.919 --> 00:13:42.919 Trump's proposed tariffs. I have heard and read so much 298 00:13:43.360 --> 00:13:46.360 about Trump's proposed tariffs. I mean, he every other day 299 00:13:46.399 --> 00:13:49.559 he comes out with another tariff he's proposing. I think, 300 00:13:49.639 --> 00:13:53.120 you know it. It seems to be getting some traction 301 00:13:53.399 --> 00:13:57.440 in terms of global affairs. I know the Mexico's president 302 00:13:57.480 --> 00:14:00.320 now plans on working with the Trump administration in terms 303 00:14:00.320 --> 00:14:02.799 of taking back some of the illegal immigrants he wants 304 00:14:02.799 --> 00:14:07.279 to send over, certainly in part because of threats of tariffs. 305 00:14:07.279 --> 00:14:12.159 And I see Trudeau's getting ready to resign in Canada, 306 00:14:12.200 --> 00:14:14.279 and one of the concerns they have in Canada is 307 00:14:14.360 --> 00:14:17.840 tariffs on Canadian goods. But this transcends that, and we're 308 00:14:17.879 --> 00:14:23.799 talking Chinese goods primarily. China is obviously a difficult competitor globally. 309 00:14:23.879 --> 00:14:27.240 They don't have any OSHA rules, they have slave labor, 310 00:14:27.279 --> 00:14:30.159 they don't have minimum wage, so it's a lot more 311 00:14:30.159 --> 00:14:33.279 difficult to compete with the Chinese companies, So at least conceptually, 312 00:14:33.600 --> 00:14:37.279 I understand wanting to perhaps tariff Chinese products, which we've 313 00:14:37.320 --> 00:14:40.039 all gotten used to because they are so inexpensive compared 314 00:14:40.039 --> 00:14:43.279 to anything that we make here. What's your take on this, 315 00:14:43.320 --> 00:14:45.320 because some people are all in favor of this for 316 00:14:45.399 --> 00:14:47.120 some of the reasons I mentioned, and some people think 317 00:14:47.120 --> 00:14:50.879 it's going to ruin the economy. Do you have any 318 00:14:51.080 --> 00:14:53.080 personal thoughts on this or anything. 319 00:14:53.200 --> 00:14:56.000 Well, I mean, in terms of the impact here, it's 320 00:14:56.080 --> 00:14:58.720 really kind of the same discussion as when I'm doing 321 00:14:58.759 --> 00:15:01.240 a financial plan for somebody. What are your priorities, right, 322 00:15:01.240 --> 00:15:03.879 what's the most important thing to you? And what I 323 00:15:03.919 --> 00:15:06.120 mean by that is if you are someone who says, 324 00:15:06.159 --> 00:15:07.840 you know what, the United States has just got to 325 00:15:07.840 --> 00:15:10.360 get more competitive because twenty thirty years from now we're 326 00:15:10.399 --> 00:15:11.720 not going to be able to be at the same 327 00:15:11.799 --> 00:15:13.759 level that we currently are, then you might say that 328 00:15:13.799 --> 00:15:16.919 it's worth laying tariffs against especially China, for the reasons 329 00:15:17.000 --> 00:15:19.600 you just mentioned. It's a lot easier for China to 330 00:15:19.600 --> 00:15:22.720 produce goods more cheaply than it is here because of 331 00:15:22.720 --> 00:15:25.519 all the rules we have. However, if you're somebody who says, 332 00:15:25.519 --> 00:15:27.639 you know what, inflation is the thing, that's the thing 333 00:15:27.639 --> 00:15:29.559 we've got to focus on, then you're not going to 334 00:15:29.600 --> 00:15:31.759 be in favor of these things because there's no way 335 00:15:31.799 --> 00:15:34.279 to have our cake and eat it too. We can't 336 00:15:34.320 --> 00:15:38.159 reduce we can't attack China with tariffs without having any 337 00:15:38.200 --> 00:15:40.960 kind of inflationary impact, and heaven knows, we've seen plenty 338 00:15:40.960 --> 00:15:43.000 of it in the last few years. So it really 339 00:15:43.039 --> 00:15:45.120 just depends on what you feel is the most important, 340 00:15:45.159 --> 00:15:47.519 what's the best for your situation. If you are a 341 00:15:47.519 --> 00:15:51.519 small business owner who imports goods, who imports natural resources 342 00:15:51.519 --> 00:15:53.919 and things from China that you need, you're probably not 343 00:15:53.960 --> 00:15:55.559 real excited about these tariffs. Right. 344 00:15:55.559 --> 00:15:56.720 On the other hand, you. 345 00:15:56.639 --> 00:15:59.360 Know, you might be if you're a company that competes 346 00:15:59.399 --> 00:16:02.440 directly with China, then you might feel a little bit differently. 347 00:16:02.799 --> 00:16:05.759 Yeah, I just the whole idea. It's an artificial tinkering 348 00:16:05.799 --> 00:16:08.919 with the market. But it's brought about because we have well, 349 00:16:09.720 --> 00:16:13.440 I guess, pretty healthy trade relations with China. For example, 350 00:16:13.480 --> 00:16:15.720 We've gotten used to it. I mean I always just 351 00:16:15.799 --> 00:16:17.639 kind of wonder, I mean, had we treated China the 352 00:16:17.679 --> 00:16:20.159 way we treated the Soviet Union, We wouldn't be having 353 00:16:20.159 --> 00:16:22.919 this discussion because we wouldn't be trading with them, period. 354 00:16:23.000 --> 00:16:26.080 End of story. Yeah, I read this article this morning, 355 00:16:26.679 --> 00:16:29.320 our National security advisor telling us that China could basically 356 00:16:29.320 --> 00:16:31.600 just flip the switch and shut down our entire electric 357 00:16:31.639 --> 00:16:36.120 grid given how much it's infected our our infrastructure with 358 00:16:36.240 --> 00:16:39.879 software and things like that. That is an enemy of ours. 359 00:16:39.879 --> 00:16:41.960 So if we just quit trading with them, period. And 360 00:16:42.000 --> 00:16:44.799 I understand the the practical effect of just shutting off 361 00:16:44.799 --> 00:16:48.120 that light swhich is impossibility. But I mean, we have 362 00:16:48.200 --> 00:16:50.639 to contend with them on some way, but we've just 363 00:16:50.679 --> 00:16:55.759 gotten I think fat and happy on cheap Chinese made stuff. 364 00:16:56.639 --> 00:16:58.519 I think you're exactly right, and I use the term 365 00:16:58.559 --> 00:17:01.120 on these airwaves pretty frequently that we're the United States 366 00:17:01.159 --> 00:17:04.039 a profit margin. The one thing for how, whether we've 367 00:17:04.119 --> 00:17:07.319 actively decided this or just passively by not objecting to it, 368 00:17:07.680 --> 00:17:10.039 the one thing we will not touch is the ability 369 00:17:10.039 --> 00:17:12.559 of our publicly traded companies to make money because that's 370 00:17:12.559 --> 00:17:15.400 how we all get richer. I'm not saying that's good, bad, 371 00:17:15.440 --> 00:17:17.880 or indifferent. I'm just saying that's the decision that we've made. 372 00:17:18.039 --> 00:17:20.200 That's why it was not hard at all. To cut 373 00:17:20.200 --> 00:17:22.440 off Russia because they were never a huge trading partner, 374 00:17:22.440 --> 00:17:25.359 and Russia never made the moves that China has to 375 00:17:25.440 --> 00:17:28.559 become a major player on the kind of overall world 376 00:17:28.599 --> 00:17:31.759 economic stage. They don't make plastic garbage that they can 377 00:17:31.759 --> 00:17:35.920 sell for nothing and undercut everybody else. China does. So therefore, 378 00:17:36.000 --> 00:17:37.960 you know, look at the things you're buying on Amazon. 379 00:17:37.960 --> 00:17:39.519 If you're looking for a phone charger, how many of 380 00:17:39.519 --> 00:17:41.279 those you think you're actually made in the United States. 381 00:17:41.279 --> 00:17:43.319 The ones that are made the United States are probably 382 00:17:43.400 --> 00:17:46.559 four or five times more expensive, probably maybe a little 383 00:17:46.559 --> 00:17:48.599 better quality. That's a different topic. But if you're simply 384 00:17:48.640 --> 00:17:51.200 going for cheap, cheap, cheap, that's China. That's what they've 385 00:17:51.240 --> 00:17:53.359 been doing for one hundred years when they figured out 386 00:17:53.359 --> 00:17:55.960 that that's a way to get under the skin of 387 00:17:56.000 --> 00:17:58.480 the United States, and we're addicted to it. You know, 388 00:17:58.519 --> 00:18:01.759 if you've been bringing in cheap product and cheap components 389 00:18:01.759 --> 00:18:03.279 for whatever it is that you build, and it's going 390 00:18:03.319 --> 00:18:04.920 to be real hard to give that up. 391 00:18:05.200 --> 00:18:07.440 Well, it certainly is. And I'm just wondering, are these 392 00:18:07.480 --> 00:18:09.720 tariffs going to apply to all the like for example, 393 00:18:09.799 --> 00:18:12.319 rare earth minerals that are brought into this country through 394 00:18:12.440 --> 00:18:16.079 China to build electric vehicles, or to wherever that happened. 395 00:18:16.119 --> 00:18:18.799 The electric vehicles have to be built, we don't have 396 00:18:18.880 --> 00:18:21.359 our own because our own environmental laws won't allow us 397 00:18:21.400 --> 00:18:23.599 to extract them, even though it's right there in front 398 00:18:23.640 --> 00:18:27.640 of our faces. So I don't know, I'm just confused 399 00:18:27.640 --> 00:18:31.079 by the whole thing. But the geopolitical the realities of 400 00:18:31.119 --> 00:18:34.599 the world have changed dramatically since Nixon normalized trade relations 401 00:18:34.599 --> 00:18:38.279