Speaker 1: Anytime. Take your info to go.
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Speaker 2: the talk station Ato six On a Monday, and a
Speaker 2: happy one to you, Brian Thomas. Always looking forward to
Speaker 2: this time we get to talk about money matters with
Speaker 2: all Worth Financials.
Speaker 1: Brian James.
Speaker 2: It is time for money Monday, Brian, Welcome back to
Speaker 2: the Morning Show and happy Monday to you, sir.
Speaker 1: Good morning, mister Thomas, and back at you, sir.
Speaker 2: Looking at the headlines of the Wall Street General futures
Speaker 2: up just slightly, but across the board in the Green
Speaker 2: I guess the situation in the war with Israel and
Speaker 2: Iran not impacting the markets too much. I guess since
Speaker 2: Israel's dominating Iranian airspace and knocking off targets one by one,
Speaker 2: it looks like that's not going to blow up to
Speaker 2: World War three or something. But at least the markets
Speaker 2: aren't reacting to it.
Speaker 3: Yeah, the market seems to be taking it in stride.
Speaker 3: Futures right now are up about anywhere from a half
Speaker 3: to one percent, depending on which one you're looking at. Friday,
Speaker 3: when this all kind of blew up, we had about
Speaker 3: a one to one point seven percent drop in the
Speaker 3: various market in disease, which that's to be expected because
Speaker 3: the market, as we always talk about, the market doesn't
Speaker 3: like unknown stuff. We don't like the unexpected, and we
Speaker 3: certainly don't want wars period, end of story. But at
Speaker 3: the end of the day, the world does keep on
Speaker 3: turning in the face of war, even if you look
Speaker 3: at and I don't want to go down this path
Speaker 3: at all, but just to give a little bit of
Speaker 3: historical context, and again not implying that this is happening,
Speaker 3: but even World War two, most of the years of
Speaker 3: World War two were positive.
Speaker 1: With regard to the stock market. We don't want any
Speaker 1: of this.
Speaker 3: But if you're sitting there going thinking, well, I can't
Speaker 3: do any about the war anyway, so I'm going to
Speaker 3: worry about the stuff that they do control, which is
Speaker 3: my own situation. There's nothing going on right now that
Speaker 3: should cause you to rush to the computer or rush
Speaker 3: to the phone, to dump everything you have or put
Speaker 3: it all in gold or any of that kind of stuff.
Speaker 1: It's just more painful. You know.
Speaker 3: Let's focus more on the human sacrifice that's occurring than
Speaker 3: the financial because that's not really happening anyway. Oil prices
Speaker 3: are moving around as would be expected. We did see
Speaker 3: a surge from sixty eight bucks to seventy eight dollars
Speaker 3: a barrel right after the real structor ins nuclear facilities,
Speaker 3: but then settled back down to about seventy two. You know,
Speaker 3: headlines do fuel this volatility, but history shows us that
Speaker 3: that these disruptions, for these smaller conflicts are typically pretty
Speaker 3: short lived. Markets are pretty have been pretty resilient, So
Speaker 3: let's not rush any conclusions.
Speaker 2: Fair enough on that. And I guess the military industrial
Speaker 2: complex is always something you put your money in.
Speaker 1: Yeah, raytheon.
Speaker 2: You know, it's like maybe that's one of the reasons
Speaker 2: the markets were stable in World War two, because everybody
Speaker 2: was churning out military hardware.
Speaker 3: Yeah, and I wouldn't say stable, I just mean not
Speaker 3: down for four years straight of you know, of a
Speaker 3: world war. And the reason for that is because generally speaking,
Speaker 3: anything that happens that surprises the world will eventually become
Speaker 3: a catalyst. The catalyst in World War two was, as
Speaker 3: you just mentioned, we became a military industrial complex. General
Speaker 3: Motors started making tanks instead of cars, and the rubber
Speaker 3: company started sending rubber overseas to the you know, to
Speaker 3: support the military.
Speaker 1: The end of the day, there's still money moving around.
Speaker 3: There are still consumers who become the government and the military,
Speaker 3: and there are still producers, so the money still flows.
Speaker 1: So that's what keeps economies afloat.
Speaker 3: And I would even throw out, you know, not that
Speaker 3: long ago with COVID in early twenty twenty. COVID made
Speaker 3: us all think the world was going to end. And
Speaker 3: if you look at what the stock market did between
Speaker 3: February and March of twenty twenty, it went off a cliff,
Speaker 3: But we don't remember that because we were all learning
Speaker 3: that we needed to go live in our houses and
Speaker 3: not come out for a while, and that was scarier
Speaker 3: than looking at financial statements. So by the time the
Speaker 3: dust settled on the market panic, then it had become
Speaker 3: a catalyst. That's where Zoom came from. Nobody had really
Speaker 3: heard of zoom much before. We all had to go
Speaker 3: home and learn how to use it. But now it's
Speaker 3: part of our lives and I know that, and I've
Speaker 3: said this on these airwaves before, you know, we all
Speaker 3: worth itself had to make sure that all of our
Speaker 3: advisors were able to communicate with clients. We needed similar
Speaker 3: desks setups at home. That means I have you know,
Speaker 3: I have a couple extra monitors, and you know, all
Speaker 3: of our employees are able to do that. And we're
Speaker 3: obviously not the only company that did that. I know,
Speaker 3: iHeart had to do the same thing as well. So
Speaker 3: anything that causes a curveball usually becomes a catalyst for somebody.
Speaker 3: Somebody's going to take advantage of the opportunity to make
Speaker 3: some money. And that's kind of what we're seeing right now.
Speaker 1: Yeah.
Speaker 2: Well, it's like artificial intelligence is changing the world as well,
Speaker 2: and we're all just going to have to roll with
Speaker 2: it and figure out where we are going to be
Speaker 2: in the you know, with with with this new concept
Speaker 2: and this new technology, it's going to change the world.
Speaker 2: Some people are going to lose jobs and others are
Speaker 2: going to be fine and safe and they're in I
Speaker 2: don't know, the impact is going to be far ranging.
Speaker 2: But we tend to adapt, right, I mean, isn't that
Speaker 2: the point We tend to adapt regardless of circumstances.
Speaker 1: Yeah, think of it as an opportunity.
Speaker 3: If if you are super close to something that that
Speaker 3: AI that you feel like AI could easily replace you,
Speaker 3: then it might be whove you to figure out how
Speaker 3: to use it in your environment to at least stave
Speaker 3: off what may be inevitable. But at the same time, yeah,
Speaker 3: these it's going to be an opportunity for somebody. So
Speaker 3: if you're if you're if you're again just off to
Speaker 3: the side worrying about AI changing things, well, then look
Speaker 3: look for what the opportunity is going to create. Where
Speaker 3: is it going to drive industry? And you can look
Speaker 3: at any period in the last couple decades and figure
Speaker 3: out what the catalyst was. Goes back, you know, going,
Speaker 3: I'm just going back to you know, twenty five years
Speaker 3: to when the Internet first became a thing and Yahoo
Speaker 3: and America Online were the big things. Well, that changed
Speaker 3: everything that we did. Then it became for a while
Speaker 3: it was real estate, and then that ran us to
Speaker 3: two thousand and eight. We ran that into the ground,
Speaker 3: and then it became mobility, mobile devices, so on and
Speaker 3: so forth. Everything is a catalyst. It creates an opportunity.
Speaker 3: Don't always look at everything as the end of something.
Speaker 3: Look at it as the beginning of something as well.
Speaker 2: Well, I understand that in terms of market we're going
Speaker 2: to get the US retail sales figures out.
Speaker 1: Is that tomorrow?
Speaker 3: Yeah, so big announcements said that that's coming tomorrow. But
Speaker 3: the highlight of the week is gonna be the Federal
Speaker 3: Reserve meeting we've got coming up on June seventeenth, eighteenth.
Speaker 3: This is where char Powell comes out and tells us
Speaker 3: whether he wants higher, lower interest rates, or no change
Speaker 3: at all. But yes, we've got a number of reports
Speaker 3: coming out this week that will help us with that.
Speaker 3: So we've had some recent soft inflation prints. That's a
Speaker 3: good thing we want that, meaning that, you know, a
Speaker 3: soft inflation print simply means that we were not looking
Speaker 3: at inflation. We're looking at it in a relatively benign
Speaker 3: man That has not, however, fundamentally altered what the Fed thinks.
Speaker 3: And there are there are actually a couple Fed governors
Speaker 3: out there who are advocating for no rate cuts at
Speaker 3: all this year. But overall, the stands from the Fed
Speaker 3: seems to be we really want to cut rates. It's
Speaker 3: not happening this week, but we do want to drop
Speaker 3: rates a little bit by the end of the year.
Speaker 3: So hopefully we'll stay on that pattern. We'll find out
Speaker 3: more later this week.
Speaker 2: Well, I mean, I think most people want the rate
Speaker 2: cut just because it's going to mean lower mortgage rates.
Speaker 2: That's typically the one ripple effect that we all feel,
Speaker 2: plus the amount of money we pay on our treasury bills.
Speaker 2: Lower is better because we of course continue to borrow
Speaker 2: and borrow and borrow and have to pay off at
Speaker 2: a higher interest rate. So a lot of reasons to
Speaker 2: want it. What's going through the Fed's mind and so
Speaker 2: far as them not cutting rates because you know, inflation
Speaker 2: has been comfortable at what two to two point three
Speaker 2: percent last several reports, which is about where they want it.
Speaker 2: Are they afraid that it's just going to go through
Speaker 2: the roof again?
Speaker 3: Well, yeah, they're afraid of setting up, you know, lighting
Speaker 3: that fuse because it can go quickly. As you just mentioned,
Speaker 3: there are plenty of people out there who really, really
Speaker 3: super want rate cuts. And the definition of that is
Speaker 3: anybody who bought a new house in the last three
Speaker 3: years and had to get a mortgage against it. Yeah,
Speaker 3: because they're paying six to seven percent. But the Federal
Speaker 3: Reserve is still looking at it won't take much to
Speaker 3: pop this off again, because there's enough unrest and enough
Speaker 3: crazy in the world. I mean, look at what we
Speaker 3: just got done talking about there's conflict in the world
Speaker 3: that will directly impact oil prices, and it is a
Speaker 3: little bit, you know, not to the point where we
Speaker 3: have to be alarmed yet, but at the same time,
Speaker 3: that's something that obviously will drive inflation. If we have
Speaker 3: this conflict spreads and we wind up with inflation in
Speaker 3: oil prices, that's going to trickle through to everything else
Speaker 3: and compound what has already been going on for five
Speaker 3: years as a result of the COVID pandemic. So yes,
Speaker 3: the Federal Reserve is super, super, super cautious. When they
Speaker 3: say they want two percent, they want two. They don't
Speaker 3: want two point three, they don't want two in a quarter,
Speaker 3: they want two percent inflation. If we're not there, then
Speaker 3: their concern is anything we do to possibly trigger it
Speaker 3: to go the wrong direction is dangerous.
Speaker 1: Okay, help me understand this.
Speaker 2: I would think that higher prices and of course everything's
Speaker 2: connected to oil.
Speaker 1: I mean stating the obvious.
Speaker 2: Everything we buy has been shipped somewhere through a semi
Speaker 2: tractor trailer or or something else. So we're enjoying you know,
Speaker 2: I saw the sign on the door Kroger over the weekend.
Speaker 2: You know, if one thousand products lower prices, and maybe
Speaker 2: the result of the reason we've getting we're getting lower
Speaker 2: prices at the grocery store because it's causing Kroger less
Speaker 2: money to ship things. That suggests more consumption. I mean,
Speaker 2: the prices are lower, aren't people engaged in more economic activity?
Speaker 2: I mean, I don't know. I'm just trying to walk
Speaker 2: through this. How this impacts in the inflation rate?
Speaker 3: Well, I think, but I think we're all on edge
Speaker 3: a little bit, right because because not just the FED
Speaker 3: is concerned about the current economic situation, it's just people
Speaker 3: in general. So you know, I think Kroger is somewhat
Speaker 3: taking advantage of that and any anything, anytime you can
Speaker 3: shine a light on, hey, we are working to reduce prices.
Speaker 3: I've never I saw one of those banners yesterday for
Speaker 3: the first time. I assume they're on all the Kroger's
Speaker 3: out there. But I think you can figure out right away,
Speaker 3: you know, that they haven't found a way to suddenly
Speaker 3: produce everything they do, you know, cheaper. They just perhaps
Speaker 3: have found an opportunity here and there to lower some prices,
Speaker 3: and they're gonna shine a bright light on that. Maybe
Speaker 3: they do that all the time, but they don't hang
Speaker 3: banners on the building. The banners, to me, are a
Speaker 3: different approach, right, So that just tells me that they
Speaker 3: that they're they're they're looking at their customer base, which
Speaker 3: is all of us, and they're saying that, you know what,
Speaker 3: these people are really really super hypersensitive to inflation right now.
Speaker 3: So any any positive step we can take, let's shine
Speaker 3: a very bright light on it. They've probably cut prices
Speaker 3: like this in the past, but haven't hung the banners
Speaker 3: or done the commercials because it wasn't a focus of
Speaker 3: the buying public.
Speaker 1: Well now it is.
Speaker 2: Yeah, and I think we're all painfully aware of how
Speaker 2: much more food and groceries costs, generally speaking, in over
Speaker 2: the last several years. I mean, we still it just
Speaker 2: boggles my mind because I go grocery shopping with my
Speaker 2: wife every single weekend and I'm still just amazed at
Speaker 2: the cost of like, for example, beef.
Speaker 1: It's just like, are you kidding me?
Speaker 2: So anyhow, maybe it's just a marketing thing going on
Speaker 2: at Kroger's. Let's pausitive, bring Brian you back. I want
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Speaker 1: Fifty five KRC dot com. Our Heightardery Today.
Speaker 2: Twenty and fifty five KRCV talk station Talking Money Matters.
Speaker 2: Brian James, Smallworth Financial. It is money Monday. I but
Speaker 2: back to the FED cutting or not, as the case
Speaker 2: may be, the interest rate. I know you seem to
Speaker 2: suggest that it's unlikely that it's going to happen, and
Speaker 2: I understand your point behind that. Clearly, it's not going
Speaker 2: to be a point. I know Donald Trump was screaming
Speaker 2: about them cutting the rates a full point. I mean,
Speaker 2: if there's any cuts, I mean we're probably talking like
Speaker 2: maybe a quarter, right.
Speaker 1: Yeah there, if we're lucky at that.
Speaker 3: So so right now, there's a handful of people out
Speaker 3: there who believe there might be a modest cup, but
Speaker 3: I think I think those people aren't talking about this
Speaker 3: or this week's meeting. They're talking about the next move
Speaker 3: will be down. We just don't know when it is,
Speaker 3: so that is generally accepted. There's not a whole lot
Speaker 3: going out there with trigger the opposite. So I don't
Speaker 3: think that's exactly worth shattering to say. But the vast
Speaker 3: majority of folks, though, I really don't believe that that's
Speaker 3: coming anytime soon. And whenever we've got scary headlines that's
Speaker 3: going to cause everybody to pause. And there's certainly enough
Speaker 3: going on in the Middle East right now that's going
Speaker 3: to make everybody say, you know, let's take a breath
Speaker 3: and just kind of watch and see what comes of this.
Speaker 1: Then we'll make decisions. So if we were at.
Speaker 3: A full two percent, like like the FED truly truly
Speaker 3: really wants, then we might be having a different conversation.
Speaker 3: But I think we're close enough now that I think
Speaker 3: the risk that they sort of perceived that the risk
Speaker 3: is in screwing out the progress as that has been made,
Speaker 3: not so much in being a little late for that
Speaker 3: final couple of rate cuts fair.
Speaker 2: Enough, and with regard to the oil, what priceures are
Speaker 2: up merely because of what might happen in the Middle East?
Speaker 2: More broadly speaking, I mean, there are a bunch of
Speaker 2: OPEC nations. We all know where that oil comes from,
Speaker 2: and because they're in the area of the ConFlat between
Speaker 2: Israel and Iran? Is that it because the amount of
Speaker 2: oil that's in the market hasn't changed, has it because
Speaker 2: Irani and oil I thought that were subject to sanction,
Speaker 2: not supposed to be able to sell it. So even
Speaker 2: if you took Iran completely offline, would that have an
Speaker 2: impact on supplies globally?
Speaker 3: I mean, and anything's going to impact, right, you've changed
Speaker 3: any of the pipelines there, any of the permissions that
Speaker 3: you know of who gets to work with whom, then yeah,
Speaker 3: that's going to have an impact. But I think that
Speaker 3: the larger issue is that people aren't focused on it
Speaker 3: as much. I mean, think about this. We oil prices
Speaker 3: have been really have really been benign. And what I'm
Speaker 3: really talking about is the price at the pump. Yeah,
Speaker 3: because that's the first thing we all see, right, that's
Speaker 3: right in your face. At least once a week, you
Speaker 3: have to.
Speaker 1: Look at it. You are required to look at it.
Speaker 3: Versus if I grab a loaf of bread off the shelf,
Speaker 3: I'm not necessarily going to look at the price tag there,
Speaker 3: but we all see gas prices immediately. That has been
Speaker 3: pretty benign, and frankly it's the last couple of years.
Speaker 3: This wasn't an issue last year. This is usually the
Speaker 3: time of year where politicians point across the aisle from
Speaker 3: whichever side and blaim the opposite side for whatever's going
Speaker 3: on at the gas pump. Right now, there's nothing going
Speaker 3: on at the gas pump, so nobody's really talking about it.
Speaker 3: And I think our past history of looking at the
Speaker 3: Middle East as the only area that can swing oil
Speaker 3: prices in one way or another, it doesn't have the
Speaker 3: same impact that it used to.
Speaker 1: And I'm not diminishing it.
Speaker 3: It's certainly the biggest, the biggest organization in the world,
Speaker 3: with Opak and all those countries out there, but with
Speaker 3: the progress that has been made in fracking in the
Speaker 3: United States, US is one of the largest producers of
Speaker 3: oil now, so we're able to moderate that as now
Speaker 3: that we are a bigger participating producer in that oil market,
Speaker 3: So those smaller regional conflicts don't have the huge impact
Speaker 3: that they used to.
Speaker 1: Still big, but not as big.
Speaker 3: Well.
Speaker 2: In Canada also fracts as well, I mean, it's amazing
Speaker 2: what fracking has done, and it's amazing when you talk
Speaker 2: about it along those lines. The United States is now
Speaker 2: the biggest oil producer. I mean, I live most of
Speaker 2: my life through the whole idea that we've reached peak
Speaker 2: oil and that we no longer have and it's a
Speaker 2: diminishing supply. The vast majority of the concept of diminishing
Speaker 2: supply was brought about by well reg and just simply
Speaker 2: outright refusal to allow us to drill on our own land.
Speaker 1: I mean, yeah, it used to be. I think. No,
Speaker 1: I'm no oil expert.
Speaker 3: But my understanding and my tiny monkey brain here of
Speaker 3: how I understand this is that when when I grew up,
Speaker 3: I believe that the oil existed as giant lakes and
Speaker 3: holes in the ground, and it was just a pure,
Speaker 3: big puddle of oil, and we sucked it all out. Yeah,
Speaker 3: now and so and so that was the concern. Those
Speaker 3: pockets were going away, we were going to deplete them.
Speaker 3: But then you know, as as soon as we figured
Speaker 3: that out, then once we figured fracking out, now we
Speaker 3: can suck it out of the cracks a little more efficiently.
Speaker 3: And if you read the stories of how fracking came
Speaker 3: to be. There's one guy behind all of it who
Speaker 3: didn't make an extra nickel for coming up with this idea.
Speaker 3: But in any case, the originally had to pump chemicals
Speaker 3: down into the ground to flush this stuff out. Then
Speaker 3: they had to process it and get those chemicals back out,
Speaker 3: and then they tried to decided to try, well, let's
Speaker 3: just do this with water because it's cheaper, and so
Speaker 3: that was a cheaper process and a better process. Then
Speaker 3: they found a way to do it without any extra
Speaker 3: So progress and technology always are moving us forward, and
Speaker 3: that has literally changed what we know as the oil.
Speaker 2: Markets amen to that and the Malthusians out there. We
Speaker 2: were able to create more food through use of technology
Speaker 2: and advancement in fertilizers and things of that nature too.
Speaker 2: So technology does play an amazing role in shifting the
Speaker 2: reality is of what people claim is an absolute crisis
Speaker 2: at any given moment. Brian James, I understand more people
Speaker 2: are claiming social security. Getting back over to your role
Speaker 2: in helping folks plan for retirement. We'll talk about that
Speaker 2: coming up one more with Brian James and Money Monday. First,
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Speaker 2: A twenty nine on a Monday one more segment here
Speaker 2: with money mondays Brian James.
Speaker 1: Yeah.
Speaker 2: My initial reaction to the topic more people claiming security
Speaker 2: is like, well, that makes sense because the baby boomers
Speaker 2: are all reaching retirement age. But the key point I
Speaker 2: think in this whole article is now people are claiming
Speaker 2: it earlier than the retirement age, because you and I
Speaker 2: both have talked about this many times, and anybody who's
Speaker 2: paid attention interestingly enough, Brian, I got my you know,
Speaker 2: the Social Security note you get which tells you what
Speaker 2: you should anticipate at retirement age. And you know if
Speaker 2: you wait longer, the amount of money you can get
Speaker 2: if you delay it till like seventy two, increases pretty substantially.
Speaker 2: But notwithstanding that, more people are taking it earlier.
Speaker 1: Yeah, quick correction there, it's not seventy two, it's seventy
Speaker 1: is the.
Speaker 2: Oldest seventy I'm sorry, Yeah, thank you, appreciate it here
Speaker 2: for job security for me.
Speaker 3: Thank you, sir. Put food on my table for a while.
Speaker 3: One more night anyway. Yeah, So this article comes from
Speaker 3: the San Francisco Chronicle. Obviously, social Security is a federal
Speaker 3: ban it meaning it applies to everybody, but the San
Speaker 3: Francisco Chronicles w one who did the homework this time around.
Speaker 3: They looked at a period from October to April and
Speaker 3: saw a thirteen percent year over year increase in claims.
Speaker 3: Many of those individuals are opting to claim benefits before
Speaker 3: having reached full retirement age of sixty seven. So full
Speaker 3: retirement age is sixty six to sixty seven, depending on
Speaker 3: the month and.
Speaker 1: Year in which you were born.
Speaker 3: But their point is most people are a lot more
Speaker 3: people are claiming it a little bit earlier. Now, the
Speaker 3: interesting thing that caught my eye on this is the timing.
Speaker 3: So from October to April, think about what has happened.
Speaker 3: Then then that the during that time period we got
Speaker 3: the most rhetoric we've ever gotten out of DC about
Speaker 3: potential changes to Social Security. So my uneducated opinion, which
Speaker 3: comes from sitting at this table doing financial planning and
Speaker 3: answering questions basically all day every day, is that a
Speaker 3: lot of people out there went, you know what, social
Speaker 3: Security has a hole in the bucket. It doesn't work anyway.
Speaker 3: They I'm sure they're going to be changing it at
Speaker 3: some point soon. So people decided have decided to turn
Speaker 3: on this bigot a little earlier. Again, I can verify
Speaker 3: that with conversations with my clients themselves, you know, and
Speaker 3: we always run a financial plan to see is it
Speaker 3: going to hurt them to sacrifice that eight percent increase
Speaker 3: that you get if you don't, and in a lot
Speaker 3: of cases they've decided, you know, what, the heck with
Speaker 3: a bird in the hand versus two in the bush,
Speaker 3: I'd rather turn on this bigot now than take the risk.
Speaker 3: I am not yet jumping up and down telling people
Speaker 3: you need to go do this now because they're going.
Speaker 1: To take it away. That's not going to happen anyway.
Speaker 3: I still feel like there's going to be time to
Speaker 3: figure out what changes might might be coming. So not
Speaker 3: quite a crisis. But again, it is interesting to say
Speaker 3: that more people are willing to fire file earlier than
Speaker 3: their been in the past.
Speaker 2: Well, and the panic that people have as a consequence
Speaker 2: of something happening to social Security, I mean, I get that.
Speaker 2: I think it's a big royal scam. We've all been
Speaker 2: led to believe that we're going to be comfortable in
Speaker 2: our retirements thanks to the government and our paying into
Speaker 2: social Security across our entire lives. But that leads people
Speaker 2: into a false sense of security, and it sort of
Speaker 2: suggests that you don't need to prepare for your own
Speaker 2: retirement independent of Social Security, and that's where your job
Speaker 2: comes in. But I mean I talk about panic in
Speaker 2: the streets. If social Security went away, how many people
Speaker 2: would be rioting?
Speaker 3: Yeah, And that's why I'm really not worried about about
Speaker 3: that happening, because at the end of the day, we
Speaker 3: still live in a republic where where everybody who makes
Speaker 3: the decisions that impacts people's daily lives. Those folks have
Speaker 3: to run for reelection at least every two years, sometimes
Speaker 3: six years, depending on what you're talking about. But so
Speaker 3: I still have to assume that if they decide to
Speaker 3: punch the voting public in the face, they are realizing
Speaker 3: that they could be ending their political careers.
Speaker 1: Maybe that's their intent.
Speaker 3: Who knows, Maybe they just want to get their shots
Speaker 3: in and move away based off of their you know,
Speaker 3: their political belief I don't think that's gonna be the case,
Speaker 3: though pretty lucrative to be a congressional leader here. So
Speaker 3: I'm not overly concerned that we are going to have
Speaker 3: an environment where there is no social security because that
Speaker 3: is the one of the largest chunks of our population.
Speaker 3: We have an aging population, so the people who are
Speaker 3: receiving those dollars in real time are the ones who
Speaker 3: are going to get out there and vote. Because they're
Speaker 3: paying attention, you can probably do more damage to the
Speaker 3: younger generations. Unfortunately, that's not a good thing. But I
Speaker 3: think that if we have to sacrifice something, it's probably
Speaker 3: going to lean that direction. However, realistically, I think we're
Speaker 3: going to eventually we're going to realize that, hey, this
Speaker 3: just doesn't work. We can get away with it a
Speaker 3: few more years. Right, we're not in dire straits yet.
Speaker 3: But if nothing else is done, then the only change
Speaker 3: that needs to be made is benefits need to be
Speaker 3: reduced by about thirty percent, which is a chunk, don't
Speaker 3: get me wrong. However, it's not one hundred percent. That's
Speaker 3: the tweet you see, that's the headline. Social Security is
Speaker 3: going bankrupt. No, that's not the case. There is simply
Speaker 3: in about seven or eight years, there will be less
Speaker 3: coming in than is going out. That's the issue. But
Speaker 3: that doesn't mean there'll be nothing coming in. I guarantee
Speaker 3: you your paycheck will still have a fight a line
Speaker 3: on it in twenty thirty three. You'll still be paying
Speaker 3: payroll taxes. Yes, indeed. But you know, the panic and
Speaker 3: concern over it might end up getting more people to
Speaker 3: start preparing for their own retirement on using their own
Speaker 3: means and allocating more of their salary to a retirement
Speaker 3: program and investing it so they have something they can
Speaker 3: independently have in their corner when they get to retirement age.
Speaker 3: Oh yeah, no, hopefully, I hope so, I hope that
Speaker 3: will be the reaction. And social security was never intended
Speaker 3: to be. It's not comfortable retirement security. It's social security
Speaker 3: meaning a way to put a meal on the table.
Speaker 3: That's really all it was ever intended to be. It's
Speaker 3: now become something that can supplement a comfortable retirement and
Speaker 3: make it even more comfortable. And it's got a different
Speaker 3: role than it did it originally had when it came out,
Speaker 3: that's for sure.
Speaker 2: Well in the world when so security was created, there
Speaker 2: are a whole lot more pensions out there with the
Speaker 2: employers providing that independent means of money in senior years,
Speaker 2: and those have all gone the way of the DoD
Speaker 2: or at least the vast majority of them have anyway.
Speaker 2: Brian James, always a wonderful conversation. Appreciate all with Financial
Speaker 2: loading you out every Monday for a few segments, and
Speaker 2: I'll look forward to another edition of Money Monday next Monday,
Speaker 2: have a great week, have a good week, stay in
Speaker 2: the air conditioning amen. Stick around folks at the Cyphony
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