Speaker 1: Always made extra special.
Speaker 2: Not only do we hear from Christopher Smithaman get an
Speaker 2: airful from Christopher. I think it's on fire. This morning,
Speaker 2: we get to hear from Brian James, all with financials.
Speaker 2: Brian James a financial planner. He is providing us with
Speaker 2: the Monday Monday segment. Brian, Welcome back to the Morning Show.
Speaker 2: Always a pleasure talking with you.
Speaker 3: Good morning much Thomas, and welcome back to you as
Speaker 3: well to your own show.
Speaker 2: Indeed, and yeah, I got a chuckle out of the
Speaker 2: topic list stock future is based on the news and
Speaker 2: you know, my immediate reaction to that, just basic summary
Speaker 2: of what we're going to talk about was stock futures
Speaker 2: maybe based on memes that float around and really not
Speaker 2: connected with things like pe ratios or reality, but just
Speaker 2: because people get all ginned up over topics designed to distract.
Speaker 2: But I'm not quite sure that's the direction you were
Speaker 2: planning on going. Well, I think that's there's some truth
Speaker 2: to that.
Speaker 3: I mean, we react to whatever is in front of us,
Speaker 3: and there's a lot more in front of us. It
Speaker 3: seems like there's a lot more every single day. You know,
Speaker 3: if you go back to twenty thirty years, the only
Speaker 3: thing you had was lou Dobbs and his market report
Speaker 3: and those.
Speaker 1: Kinds of things.
Speaker 3: Yeah, to do at the end of the day. Now
Speaker 3: it's in your face all day, every day. And that
Speaker 3: has led us to a situation where even if there
Speaker 3: isn't a headline, gosh darn it, we're gonna find one.
Speaker 3: And we look to memes and we look to all
Speaker 3: this other kind of social media stuff for whatever is
Speaker 3: everybody talking about. There may not actually be a headline,
Speaker 3: but somebody's talking about something, and by god, I'm going
Speaker 3: to react to it.
Speaker 2: Yeah, no question about it. Also, you know, I have
Speaker 2: a dear friend, Jay Rattliffe. I heard media aviation expert
Speaker 2: Jay Ratloff, who also is a bit of a day trader,
Speaker 2: and he's a quick in and out guy. I mean
Speaker 2: the way he trades and the way he teaches how
Speaker 2: to trade, And that's part of his business is to
Speaker 2: teach people. His methodology usually really successful. So in like,
Speaker 2: you know, thirty minutes in the morning, he will jump
Speaker 2: in following some kind of trend to identify it, and
Speaker 2: then as soon as he gets some kind of profit,
Speaker 2: he gets right out. So in a half hour, who
Speaker 2: may make five thousand dollars because he doesn't hang on
Speaker 2: to any given stock. And I know that's not the
Speaker 2: methodology that you prefer, which is mixed index funds and
Speaker 2: things like that, but I think it's because of the
Speaker 2: mean reality of the world that those stocks will fluctuate
Speaker 2: so rapidly during a day someoney gets the word out,
Speaker 2: the stock will jump, and you got to just know
Speaker 2: when to dump it and not hang onto it for
Speaker 2: too long or you're gonna lose your money in a
Speaker 2: single day.
Speaker 3: Yeah, And I think and on the idea of day trading,
Speaker 3: and uh, you know, I know, I know Jay, and
Speaker 3: he's he's got his strategy, and I think that the
Speaker 3: keyword there is prefer which doesn't mean rule out anything.
Speaker 3: So you know, I think even Jay himself will tell
Speaker 3: you that you need to keep your core money in
Speaker 3: a good, you know, good diversified type of a portfolio
Speaker 3: that frees you up to do the kind of things
Speaker 3: that he trains on. And that's okay, there's nothing wrong
Speaker 3: with that. You want to take a flyer on something,
Speaker 3: then then then knock yourself out. But day trading is
Speaker 3: a job. It's not something where I'm gonna go at
Speaker 3: a stoplight. I'm going to buy a stock real quick
Speaker 3: and then I'll sell it at lunchtime. No, you're just
Speaker 3: sitting there watching numbers on a screen.
Speaker 1: Yeah.
Speaker 2: My wife was like, you need to take Jay's class.
Speaker 2: You need to take Day's class. And I'm thinking to myself,
Speaker 2: it is a job, you know. You you you've got
Speaker 2: to commit yourself to following the stock market or following
Speaker 2: individual stocks. And honestly, man, that does not sound like
Speaker 2: it's fun. You know, it doesn't grab my attention, even
Speaker 2: though you can make money at it, you know, applying
Speaker 2: meeting myself to that kind of activity just just like
Speaker 2: it's just it's not appealing, huh.
Speaker 1: You know.
Speaker 3: Yeah, And a lot of people out there too, you know,
Speaker 3: we hear the stories about crypto and people like make
Speaker 3: a lot of money in crypto, and it's the same
Speaker 3: kind of approach.
Speaker 1: You're not buying and sitting on something.
Speaker 3: This isn't you know, a stock where you're you're picking
Speaker 3: up something because they just invented the new widget we
Speaker 3: all have to have and you can just sit and
Speaker 3: watch it rise. You have to learn how to bounce
Speaker 3: in and out of it. Then you have to be
Speaker 3: willing and more importantly, Brian Thomas, you have to be
Speaker 3: willing to take the hits. Everybody who has made money
Speaker 3: in anything has lost a lot of money in the
Speaker 3: exact same thing. And you're hearing about the good run
Speaker 3: that they just had. They don't bother bringing up they
Speaker 3: took like gambling. I won four hundred dollars in the casino.
Speaker 2: That was like one day, and then you know the
Speaker 2: prior six days, you lost four hundred every single day.
Speaker 3: Anybody who tells you they made a bunch of money
Speaker 3: and something that's great, ask them for the full year.
Speaker 3: You know, up ups and downs of whatever they're doing.
Speaker 3: And if they're doing something so great, that's awesome. Maybe
Speaker 3: they're in the next Warren Buffett, But well take a
Speaker 3: breath before you believe them.
Speaker 2: One of the things that does impact the market as
Speaker 2: well as market futures, jobs data and I guess US
Speaker 2: data showed non farm payrolls increased by one hundred and
Speaker 2: thirty nine thousand jobs last month. It was downwardly. It
Speaker 2: was revised one hundred and forty seven thousand in April.
Speaker 2: So what does that mean? Unemployment rates is static at
Speaker 2: four point two, which is not bad. I mean that's
Speaker 2: I guess considered full employment anyway, We've talked about that before.
Speaker 3: Yeah, we're just about darreed. And remember most people will
Speaker 3: go well fulls one hundred percent. So why are we calling,
Speaker 3: you know, ninety six percent employment full? Well, we have
Speaker 3: to have some some oil in the engine. If everybody
Speaker 3: is employed, then that means we can't expand anymore. So
Speaker 3: we need that buffer of people who need jobs so
Speaker 3: that businesses can expand and do the things they need
Speaker 3: to do.
Speaker 1: So, yeah, some good news last week.
Speaker 3: Expectations were kind of low heading into the monthly report
Speaker 3: that this one came from ADP. I remember, so ADP
Speaker 3: is a private company, of course, just like any other
Speaker 3: well public trade, but it's in the private sector and
Speaker 3: they're simply reporting on Here's what our little app shows
Speaker 3: in terms of all the people who were added to
Speaker 3: the system. Because ADP is ultimately a payroll company, they
Speaker 3: know exactly how many people were on the system a
Speaker 3: month ago and are on now, and then we extrapolate
Speaker 3: that out to mean something in the overall economy. But
Speaker 3: the main job support showed that employers added about one
Speaker 3: hundred and thirty nine thousand jobs. The expectation was one
Speaker 3: hundred and twenty six thousand. So a lot of times,
Speaker 3: as we know, when we talk about the economy and
Speaker 3: the market, what we're trying to do, we're reacting to
Speaker 3: whether the analysts were right or not. And in this case,
Speaker 3: the analysts were slightly wrong, but in a good way.
Speaker 3: We got more than we expected.
Speaker 1: No fair enough?
Speaker 2: Well, and I know, so what are some of the
Speaker 2: other things. I know we got China to talk about
Speaker 2: as well, But officials are meeting with the China to
Speaker 2: discuss trade, and this seems like I being an on again,
Speaker 2: off again proposition, you know, things that seemed to be
Speaker 2: going in the right direction, and then as soon as
Speaker 2: they sit down to have talks, it tends to go nowhere.
Speaker 2: At least that's what it seems to me to be. Like,
Speaker 2: I haven't been following yet as closely as perhaps I should.
Speaker 2: But then again, as we talked about a moment ago,
Speaker 2: there's like eight million different things you can talk about,
Speaker 2: and I tend to be following something else other than
Speaker 2: our on and off, on again, off again relationship with China.
Speaker 3: Right, Yeah, So, so last week there were some discussions
Speaker 3: between Trump and President she of China for a nice
Speaker 3: phone call that that Trump described as very good, which
Speaker 3: is of course always super descriptive, and we get a
Speaker 3: lot of information out of a couple of adjectivicy forros
Speaker 3: out after a call. But they talked about rare earth
Speaker 3: minerals and you know, continuing to talk and renewing negotiations
Speaker 3: and all that, and so markets generally took that conversation
Speaker 3: as a positive step, although as you as you just mentioned,
Speaker 3: there's not a whole lot of meat to it. I
Speaker 3: think the markets are responding to the fact that, okay,
Speaker 3: so underneath right now, the economy seems to be doing okay,
Speaker 3: as we just talked about, the jobs report seems to
Speaker 3: be coming along just you know, decently, and we are
Speaker 3: willing to have conversations with China and they are willing
Speaker 3: to have conversations with us.
Speaker 1: That's it.
Speaker 3: There's no you know, otherwise it's a big nothing burger
Speaker 3: because there isn't a whole lot you can you can
Speaker 3: sink your teeth into it as to here's how the
Speaker 3: United States and China are going to move forward together
Speaker 3: within this global trade economy. It's just the fact that
Speaker 3: we are still talking to each other, and underneath, the
Speaker 3: economy is doing Okay, So as far as taking the
Speaker 3: tempers of the water right now, we are not in
Speaker 3: panic vote.
Speaker 2: Well, and I you know, speaking of panic vote and
Speaker 2: I know panic you know, makes the headlines. The suggestion
Speaker 2: that China would dump all US treasuries and and quit
Speaker 2: dealing with completely. That's not possible for them, is it now?
Speaker 3: So you have to remember whether we'd like each other
Speaker 3: or not doesn't really factor into the overall global success
Speaker 3: of each individual country's economy. If China, China is the
Speaker 3: largest holder of treasury bonds other than the US Treasury itself. Uh,
Speaker 3: And if they dumped all of those treasuries, if they
Speaker 3: simply walked away, then the value of those would drop
Speaker 3: completely and that would hurt China as well.
Speaker 1: So that's why they haven't done yet.
Speaker 3: If they could pull the trigger and there was no
Speaker 3: downside to them, they'd done it already to put themselves
Speaker 3: in a better position, as would we. Every country is
Speaker 3: out for its own interests. So but but everything is
Speaker 3: so interconnected now you can't really make a move without
Speaker 3: having some kind of blowback come back your way. And
Speaker 3: there's there's the idea of if they were to pull
Speaker 3: all of their currency out of and repatriate their currency
Speaker 3: by pulling it out of US treasuries and US debt.
Speaker 1: Where's it going to go.
Speaker 3: They're either gonna they're gonna have to park it in
Speaker 3: their own coffers, or they're gonna have to go to
Speaker 3: the the next best country out there and buy their debt.
Speaker 3: And there's just not a heck of a lot of
Speaker 3: size and things you can rely on once you get
Speaker 3: past the United States and China. So I don't think
Speaker 3: there's that's very likely at all, But it sharres a
Speaker 3: sexy headline to talk about.
Speaker 2: Yeah it is, and you know, it kind of keeps
Speaker 2: people on their heels thinking, oh my god, the world's
Speaker 2: gonna end. But practically speaking, that's why I brought it up.
Speaker 2: You know, it is an argument they could make, but
Speaker 2: you know, the devils and the details and the points
Speaker 2: you make show exactly why media isn't as strong as
Speaker 2: some are suggesting it is. As we sit down at
Speaker 2: the negotiating table with China to talk about trade policies,
Speaker 2: think about Kearse Detalks Station Monday Monday at Brian Jamee.
Speaker 1: All Right, we talked a little bit about China.
Speaker 2: I understand that these trade talks are going to continue today,
Speaker 2: so that that obviously is going to impact the markets,
Speaker 2: but we don't know what's going to happen, so we're
Speaker 2: just going to have to take a wait and see
Speaker 2: approach on that one.
Speaker 1: Why has apple Stock been struggling?
Speaker 3: Brian Well, I think Apple has hit a point where
Speaker 3: it's already well known and everybody knows what an iPhone is.
Speaker 3: The iPhone hasn't changed drastically. We haven't had a new
Speaker 3: device like the you know, the iPad kind of changed
Speaker 3: things when it came out. There was, if anybody remembers,
Speaker 3: there was the vision pro device that was supposed to
Speaker 3: be the next great thing. But those are now apparently
Speaker 3: hitting Facebook marketplace as people are just willing to take
Speaker 3: losses on the on this multi thousand dollars device that
Speaker 3: they bought, so almost kind of in a position where
Speaker 3: they've gone just a little bit stale.
Speaker 1: I think fair enough on that one.
Speaker 2: Okay, now explain this to me because I understand that
Speaker 2: opek is increasing production of oil h our our extraction
Speaker 2: policies of changing the Trump administration that you know, drill baby, drill,
Speaker 2: I guess is the mantra from the Trump administration why
Speaker 2: are oil futures up? What's what's the story on this one, Brian.
Speaker 3: We're finally getting response, I believe, to the to the
Speaker 3: fact that we're hitting the summer travel season in the
Speaker 3: United States and then we spend a lot of you know,
Speaker 3: we spend a lot of money traveling around. We hadn't
Speaker 3: had that yet. Usually you and you and I would
Speaker 3: be talking about it if it would have been a headline.
Speaker 3: We made it all the way through May without talking
Speaker 3: about oil very much. I think our prior years, that
Speaker 3: was most of our Monday mornings was talking about that.
Speaker 1: But price we had to pump have been down.
Speaker 2: I mean, they were left less than three bucks last
Speaker 2: week when I checked on gas, but at least up
Speaker 2: in my neighborhood. Although it's a little north to three
Speaker 2: bucks now, but still that's that's way off from what
Speaker 2: it was not that long ago.
Speaker 3: You know, I think I think in the past it's
Speaker 3: been it's been more driven by hype because, you know,
Speaker 3: not so much the actual inputs, but more the idea
Speaker 3: that hey, we're gon we're gonna start talking about oil
Speaker 3: prices going up. And politicians do this. They have certain
Speaker 3: agendas they want to push, so they'll push the idea
Speaker 3: that hey, it's April, oil prices are going up, you
Speaker 3: gotta be paying attention to these things. Well, I think
Speaker 3: we've been distracted by so many things this past year
Speaker 3: that there's been so much other stuff to talk about
Speaker 3: that that hype never occurred. But now we're running actually
Speaker 3: on what is really happening, and now we're officially in
Speaker 3: vacation season and all that people are driving and doing more.
Speaker 3: The economy actually is despite the headlines of the economy
Speaker 3: is doing okay. Yeah, so there is still demand out there,
Speaker 3: and we always have that switch to the summer mix
Speaker 3: and all that kind of stuff when they change the
Speaker 3: chemicals around inside the gas pump, and that is finally
Speaker 3: pushing things forward.
Speaker 1: But I think for once it's just based on.
Speaker 3: The reality of what is actually happening at the pump,
Speaker 3: then the hype preceding it.
Speaker 1: All.
Speaker 2: Right, Well, if you own a Tesla, you don't need gasoline.
Speaker 2: But Tesla's stock is another issue. You know, I was
Speaker 2: laughing about it earlier, Brian. So we have Elon Musk
Speaker 2: is head of DOGE, alienates the left.
Speaker 1: They hate him.
Speaker 2: He's cutting things evil Elon Musk. So let's vandalize Tesla's
Speaker 2: and let's dump the stock. So his stock obviously very volatile,
Speaker 2: and it dropped. So now we got the Trump Musk
Speaker 2: split up and divorce, saw us making the headlines everywhere.
Speaker 2: Oh my god, you're look at their name calling and
Speaker 2: Trump or Musk isn't on board for the big beautiful
Speaker 2: bill and that's got Donald Trump angry, which obviously has
Speaker 2: the suggested impact of angering the Trump side of the
Speaker 2: political ledgers. So are they dumping Tesla stock as well?
Speaker 2: Because I see Tesla's not done real well, although it
Speaker 2: is it did jump a little bit the other day.
Speaker 3: Well, Tesla of course dipped its toe into the political waters.
Speaker 3: You know obviously when when Elon Musk took his role,
Speaker 3: and really before that, when when he took his role
Speaker 3: in the campaign. Yeah, so a hard fourteen percent drop
Speaker 3: last week when the original announcement or the threat was
Speaker 3: made that we could remove the electric vehicle subsidies from
Speaker 3: you know, from the ability for somebody to buy it
Speaker 3: and make a little bit more reasonably priced. So a
Speaker 3: little bounce back there after that fourteen percent drop. It
Speaker 3: came back almost four percent. But when that drop happened,
Speaker 3: it took away about one hundred and fifty billion dollars
Speaker 3: in market value.
Speaker 1: Nothing has changed about a Tesla vehicle.
Speaker 3: It's the same product it was before this whole debate,
Speaker 3: and it kind of fills the same role. However, this
Speaker 3: is what happens when when companies dip their toes into
Speaker 3: the political where We've seen this before. Henry Ford took
Speaker 3: his company through a major hit when he published in
Speaker 3: his own newspaper some anti semitic articles. Board was not
Speaker 3: publicly traded at the time that he did that. But
Speaker 3: same car company, you know, same idea, took a major
Speaker 3: hit because the owner took a political stance against some
Speaker 3: of his customers. And I think that's what's happening here.
Speaker 3: We're just seeing the fallout from it.
Speaker 2: Well, and let's face it, you know, Tesla's as a
Speaker 2: product propped up in part because the government was willing
Speaker 2: to give you some money back if you bought one
Speaker 2: that or some other electric vehicles. And I think this
Speaker 2: whole green agenda seems to be taking a nosedive globally.
Speaker 2: I mean, people are realizing that, you know, solar panels
Speaker 2: can't meet the challenges of day to day life blackouts.
Speaker 2: These projects have gone over budget, and they're all funded
Speaker 2: and fueled by tax pair dollars, and it just seems
Speaker 2: to mean it has been a shift away from it,
Speaker 2: so that obviously is gonna have a long term impact
Speaker 2: on electric vehicles anyway. Hybrids seem to be the way
Speaker 2: of the future. Yeah, and I think they're the way
Speaker 2: of the future and the way of the present.
Speaker 3: I think I think a hybrid is the best deal
Speaker 3: you've got going combining old technology with new until we
Speaker 3: get to a point where the new technology can really
Speaker 3: make everything else obsolete.
Speaker 1: You know. But it's interesting there.
Speaker 3: Elon Musk has always been obviously at the cutting edge
Speaker 3: of how can we make things more efficient and that
Speaker 3: kind of thing.
Speaker 1: That's why he's got such a huge fan base.
Speaker 3: But even he had a solar company called Solar City,
Speaker 3: and that we don't talk about that nearly as much
Speaker 3: as we talk about Tesla and SpaceX and all those
Speaker 3: kinds of things. And so it's very interesting that he
Speaker 3: took a position when he went on the police side,
Speaker 3: he took a position that worked directly against a lot
Speaker 3: of the major companies and the things that he's involved in.
Speaker 3: Don't forget SpaceX's right now, it's our only way to
Speaker 3: get to space. But it also relies on obviously an
Speaker 3: awful lot of federal government grants, and there's some risk
Speaker 3: there as well.
Speaker 1: He's got it at some point.
Speaker 3: If he wants these companies to stay somehow connected and
Speaker 3: to stay viable, he's going to have to somehow be
Speaker 3: friends with whoever is sitting on the throne in Washington, DC.
Speaker 3: And right now the relationship's not going too fabulously, although
Speaker 3: it seems that they possibly are on speaking terms again.
Speaker 1: But yeah, I guess we'll have to wait to see
Speaker 1: more headlines.
Speaker 2: I think that's the direction it's going to go, because
Speaker 2: that's a true statement. You got to be friends with
Speaker 2: the administration, regardless of what the administration is apparently to
Speaker 2: get anywhere in this world. Everybody's figured that one out.
Speaker 2: Let's pause, bring Brian Jabs back to talk about some
Speaker 2: common social media myths about saving debt and by now
Speaker 2: pay later.
Speaker 1: Eight twenty six, fifty five Kosity Talk station.
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Speaker 2: It is eight twenty nine. If you FI KCD talk station,
Speaker 2: Very happy Monday to you. We're gonna raise some awareness
Speaker 2: on Giving Voice Foundation. Krista Power, the executive director for
Speaker 2: the charity, is also going to talk about a bourbon
Speaker 2: raffle for their fundraiser. In the meantime, Brian James myths
Speaker 2: out there in the world. I know, folks. One of
Speaker 2: the things that you other financial planners always recommend you
Speaker 2: have a nice nest egg easily available for you in
Speaker 2: case like you get fired or things happen. It's always
Speaker 2: worth having some money piled up. But some people are
Speaker 2: operating under the perception that, well, it's just not worth
Speaker 2: saving unless you can put away a whole lot of money.
Speaker 2: Accurate or not.
Speaker 1: Yeah, that's accurate in terms of it being a myth.
Speaker 3: However, you know that this is a place where is
Speaker 3: this can get you in trouble. So if I'm not
Speaker 3: saving because I have concluded that, well, if I can
Speaker 3: only put ten twenty bucks away, you know, a week
Speaker 3: while I'm just getting started, or you know, maybe in
Speaker 3: a rough period or whatever, then that's going to kind
Speaker 3: of ingrain itself in my mind and I'll never save. So,
Speaker 3: you know, two, three, four years down the line, maybe
Speaker 3: I'm in a position now where i can save one
Speaker 3: hundred dollars a week, but I've already convinced myself, well
Speaker 3: it wasn't enough.
Speaker 1: Then it's not enough. They're therefore it's never enough.
Speaker 3: So these are just small habits in early on in
Speaker 3: your careers, when you're just getting started, it's more important.
Speaker 3: The habit is more important than the than the active
Speaker 3: of saving just a few dollars. If you can get
Speaker 3: into the habit of making sure that there's always a
Speaker 3: surplus on a monthly basis, and then that surplus gets
Speaker 3: saved into something, whether it's an emergency on bank account
Speaker 3: or your four oh one K, that is a strong habit.
Speaker 1: It's going to benefit you down the road. So don't
Speaker 1: fall for that myth.
Speaker 2: Fair enough, Now, what about the idea that, well, if
Speaker 2: you have a big, fat paycheck, then you are financially successful.
Speaker 2: And I know that's a myth.
Speaker 3: This is a screaming myth because a lot of people
Speaker 3: take that high income and they make they make financial
Speaker 3: messes out of themselves. Do they use the phraseology all
Speaker 3: the time? I might have a client with five hundred
Speaker 3: thousand dollars in their retirement plan and they're going to
Speaker 3: be just fine. My other clients with five million dollars
Speaker 3: in their retirement plans live like they have twenty million
Speaker 3: dollars in their retirement plan. So what matters is your
Speaker 3: is your cash flow, not your pile of money.
Speaker 1: It's the spending that counts, not how big the pile is.
Speaker 2: Well, and that pile money that you have invested, you'll
Speaker 2: have more to invest if you exercise financial discipline. I mean,
Speaker 2: this is one of the thing reasons why I always
Speaker 2: say I outkicked my coverage when I married. My wife's
Speaker 2: very frugal, and that aligns with my mentality. I have
Speaker 2: always been absolutely scared of scared, like hell of debt,
Speaker 2: you know, I mean even having a mortgage. I mean,
Speaker 2: we're capable of making the monthly mortgage payment. But we
Speaker 2: went a little more frugal than we certainly could have
Speaker 2: afforded when it came to our house because I never
Speaker 2: wanted to be house poor. I mean, her her mindset
Speaker 2: was completely in line with mine. So you know, if
Speaker 2: you really don't need it, you just don't buy it.
Speaker 2: That's financial discipline.
Speaker 1: Yeah, and that leads you.
Speaker 3: That leads you to a position where down the road
Speaker 3: you'll be able to live your life without concern for
Speaker 3: where the next meal is coming from, the bills paid,
Speaker 3: and so forth, and move the ball forward, not always
Speaker 3: scrambling to for that next nickel.
Speaker 2: Yeah, there's a lot to do in enjoying the world
Speaker 2: without having to spend a lot of money. I think
Speaker 2: I just learned that lesson over my entire life. I
Speaker 2: guess because I grew up on the west side. Something
Speaker 2: about the water over there. And finally, the whole idea
Speaker 2: of buy now, pay later. What's what's this?
Speaker 3: Yeah, so this is a when you're buying something online anymore,
Speaker 3: most people ignore it. But if you're buying something online,
Speaker 3: there's always in your shopping cart when you're checking out,
Speaker 3: there's always a little link nowadays that says, hey, you
Speaker 3: could do this in for you. You could spend this
Speaker 3: twenty six dollars and forty two cents in four easy
Speaker 3: payments and your life will be great. There's a bunch
Speaker 3: of companies that do this. Klarna kla Rna is one
Speaker 3: of the big ones. This is a Swedish company that
Speaker 3: they're basically making money. This is the modern day layaway.
Speaker 3: So what they're doing is they're taking these relatively small debts.
Speaker 3: The average Colarna balance is about eighty seven dollars, as
Speaker 3: opposed to the average credit card balance more traditional financing
Speaker 3: about sixty five hundred. So they're taking these extremely small
Speaker 3: amounts and you'll pay about ninety nine percent of users
Speaker 3: paying four different payments, and you're basically applying for credit
Speaker 3: able to get it without without a good credit score.
Speaker 3: It's not the same kind of underwriting you'll go through
Speaker 3: in a credit card transaction. Klarna it makes money by
Speaker 3: hoping that some of these people out there aren't gonna
Speaker 3: make payments right at all, and they're gonna get They're
Speaker 3: gonna hit him with late fees and all that kind
Speaker 3: of stuff. The late fee on a you know, it
Speaker 3: can be a seven dollars late fee on an eighty
Speaker 3: seven dollars payment. If you think about that, that's about
Speaker 3: nine percent, and that's if you annualize that out over
Speaker 3: a long over a full year. That's a huge amount
Speaker 3: of money. But remember a lot of people translate by
Speaker 3: now pay later to buy now pay maybe, or never
Speaker 3: had the intent to pay in the first place. So
Speaker 3: Klarna consequently has laid off several thousand employees.
Speaker 2: And for whatever reason, student loans just popped into my mind.
Speaker 1: Brian, Yeah, a little bit again.
Speaker 3: Definitely buy now pay maybe, I'm or wait until the
Speaker 3: government decides that we're not gonna bother collecting those dollars anymore,
Speaker 3: which is never gonna happen.
Speaker 2: Hey man, it's always a pleasure talking with you, Brian James.
Speaker 2: Thanks to Worth Financial as always for loaning you out
Speaker 2: for a few segments, so I've good appreciate the information.
Speaker 2: I'm sure my listeners do as well. We will have
Speaker 2: another go at this next Monday, and the meantime, have
Speaker 2: a full week.
Speaker 1: My friend. Yes, sir, stay dry, talk to you Monday.
Speaker 1: Thanks brother. Coming to a day thirty five.
Speaker 2: If you five KRCD talk station, we're gonna be hearing
Speaker 2: it from executive Krystal Power, executive director of Giving Voice Foundation,
Speaker 2: Burbo Raffle. There's a bourbon raffle and there's some really
Speaker 2: awesome bourbons available in this raffle for charity. So get
Speaker 2: your credit card out, be ready to get some tickets.
Speaker 1: Don't cool. I'll be right back.