WEBVTT 1 00:00:00.040 --> 00:00:02.600 It gets me ready for the day at all day 2 00:00:02.680 --> 00:00:04.559 in fault and check in throughout the day. 3 00:00:04.919 --> 00:00:07.679 Fifty five krs The talk station. 4 00:00:10.240 --> 00:00:13.240 Eight o five. Here a fifty five PRCD talk station. 5 00:00:13.480 --> 00:00:18.359 Happy Monday Time to learn stuff and things about money. 6 00:00:18.359 --> 00:00:20.640 It is money Monday Time. Every Monday at eight o five. 7 00:00:20.679 --> 00:00:22.600 Can talk to Brian James all Worth financially. He's a 8 00:00:22.640 --> 00:00:25.480 financial planner and follows these matters very closely because his 9 00:00:25.600 --> 00:00:28.199 job depends upon it. Welcome back, Brian James. Happy Monday 10 00:00:28.199 --> 00:00:28.399 to you. 11 00:00:29.160 --> 00:00:32.000 Happy Monday, right back at you. And it is just 12 00:00:32.039 --> 00:00:33.479 a great time of year to get out there and 13 00:00:33.520 --> 00:00:35.479 enjoy that sunny, gray weather, isn't it. 14 00:00:35.640 --> 00:00:38.759 Oh jeez, yeah, I'm at least we're kind of get 15 00:00:38.759 --> 00:00:42.200 some sunnies guys today. It's you know, when it's been 16 00:00:42.240 --> 00:00:44.320 so cold, you look outside and the sun's barren dawn 17 00:00:44.320 --> 00:00:45.719 and you think, oh, it looks great out there, and 18 00:00:45.759 --> 00:00:47.640 you walk out and you're hit with this arctic blast. 19 00:00:47.640 --> 00:00:52.479 That's just it's so deceiving and depressed, I know, I know. Anyway, 20 00:00:52.640 --> 00:00:55.759 moving over to I see the across the board, all 21 00:00:55.799 --> 00:00:58.640 the futures are down, and some pretty significantly A couple 22 00:00:58.719 --> 00:01:01.399 points down s and p five hunter Nasdaq's down three 23 00:01:01.399 --> 00:01:06.040 point seventy four futures trading, and any hint or understanding 24 00:01:06.040 --> 00:01:07.719 as to why that might be the case currently. 25 00:01:07.760 --> 00:01:11.879 Brian James, Well, I think we're sort of getting to 26 00:01:12.000 --> 00:01:15.959 the getting past the honeymoon stage of we've elected a 27 00:01:16.000 --> 00:01:19.480 business friendly administration. We've had a little bump from that 28 00:01:19.719 --> 00:01:23.079 over the past several weeks, and now we're just getting 29 00:01:23.079 --> 00:01:25.120 to a point where realizing that it's not going to 30 00:01:25.120 --> 00:01:28.280 be as easy as electing somebody and then just moves 31 00:01:28.319 --> 00:01:30.599 sailing from there on out. We've got some other things 32 00:01:30.599 --> 00:01:32.480 we'll talk about here this morning that are going to 33 00:01:32.480 --> 00:01:34.640 be coming out just a little bit on the less 34 00:01:34.680 --> 00:01:36.200 than happy side as far as business goes. 35 00:01:36.519 --> 00:01:38.239 I started out the show this morning, or at least 36 00:01:38.239 --> 00:01:40.560 at some point, talking about this S and P Global 37 00:01:40.599 --> 00:01:44.840 Flash Purchasing Managers Index, which reports that the optimism among 38 00:01:44.920 --> 00:01:49.519 business people is really really high and they're expecting factory 39 00:01:49.560 --> 00:01:52.480 output and hiring it. It actually has risen over the 40 00:01:52.519 --> 00:01:55.680 past six months, and really a dramatic increase going all 41 00:01:55.680 --> 00:01:58.079 the way back to May of twenty twenty two. So 42 00:01:58.120 --> 00:02:00.400 I kind of thought that might be parla aid into 43 00:02:00.439 --> 00:02:02.359 an increase in the stock market. 44 00:02:02.439 --> 00:02:06.319 But anyway, Yeah, well, and I think when things like 45 00:02:06.359 --> 00:02:09.159 that happen, the headline and the article you're reading, the 46 00:02:09.199 --> 00:02:11.719 market reacted to that a week or two ago, so 47 00:02:11.759 --> 00:02:14.039 it's just now getting written up by journalists, and so 48 00:02:14.080 --> 00:02:16.960 the market is now looking at the pendulum swings back 49 00:02:16.960 --> 00:02:18.960 and forth. So then market now is looking at I 50 00:02:18.960 --> 00:02:21.639 think things that might be not quite so rosy out. 51 00:02:21.520 --> 00:02:24.719 There, fair enough, and pivoting over to Donald Trump's tax plan. 52 00:02:24.800 --> 00:02:28.360 I saw the tax Foundation dot org article. Some of 53 00:02:28.400 --> 00:02:30.599 it's good and some of it not so good. Most 54 00:02:30.599 --> 00:02:33.759 notably they don't like the idea of these tariffs and 55 00:02:34.080 --> 00:02:36.879 suggests that we'll really negate any of the benefits of 56 00:02:37.280 --> 00:02:40.000 keeping the tax the current tax rates in place. 57 00:02:41.080 --> 00:02:41.360 Yeah. 58 00:02:41.360 --> 00:02:44.080 So we've got an administration, of course, that wants to 59 00:02:44.280 --> 00:02:46.879 stamp its put its own stamp on things, and that 60 00:02:47.039 --> 00:02:51.039 as we've seen before, that relates to the relationships we 61 00:02:51.080 --> 00:02:53.280 have with other countries and the trade agreements that we 62 00:02:53.319 --> 00:02:56.080 have in place. And unfortunately, we've been through it before, 63 00:02:56.159 --> 00:02:59.120 so we've seen what the impact can be. But I 64 00:02:59.159 --> 00:03:01.919 think the the main concern right now is that there's 65 00:03:02.000 --> 00:03:04.080 nothing One of the big things that Trump ran on 66 00:03:04.240 --> 00:03:06.800 was the price of eggs and getting things down and 67 00:03:06.840 --> 00:03:09.840 making things easier for American families and businesses and so 68 00:03:09.879 --> 00:03:12.479 on and so forth. But right alongside that, he was 69 00:03:12.639 --> 00:03:16.159 just as vociferous about raising tariffs on companies that we 70 00:03:16.240 --> 00:03:19.560 do business with to affect different things he wants from 71 00:03:19.599 --> 00:03:21.800 each of these relationships. And there's really nothing about a 72 00:03:21.840 --> 00:03:25.520 tariff at all that will help lower costs. You're simply 73 00:03:25.560 --> 00:03:29.840 increasing the cost of supply and you're tacking money onto 74 00:03:29.840 --> 00:03:31.919 the front end of things, and that has to trickle 75 00:03:31.960 --> 00:03:34.639 down to ultimately to the consumer. So that's what the 76 00:03:34.639 --> 00:03:36.439 market is now starting to see in terms of the 77 00:03:36.479 --> 00:03:37.599 impact coming down the stream. 78 00:03:37.919 --> 00:03:41.000 Well, yeah, I mean to the extent they don't capitulate 79 00:03:41.039 --> 00:03:44.479 to what Donald Trump wants. And I use the Colombians. Yes, 80 00:03:44.560 --> 00:03:47.599 the other day, their president Gustavo Patris said no, you 81 00:03:47.639 --> 00:03:51.800 will not repatriate my fellow Colombians in these flights and 82 00:03:51.840 --> 00:03:55.719 denied access to the country to these military flights, only 83 00:03:55.759 --> 00:03:58.879 to turn around after Trump threatened him with sanctions, So 84 00:03:59.400 --> 00:04:01.599 twenty five or sense sanctions he threatened. He said, they're 85 00:04:01.599 --> 00:04:03.800 going to go up to fifty percent if you don't 86 00:04:03.840 --> 00:04:05.840 hurry up and start allowing these folks and he did 87 00:04:05.919 --> 00:04:07.919 change his tunes almost immediately yesterday. 88 00:04:08.879 --> 00:04:11.280 Yeah, and it was pretty quiet too. He didn't really 89 00:04:11.280 --> 00:04:13.639 say exactly what had changed his mind. It was just 90 00:04:13.680 --> 00:04:15.360 all of a sudden, the problem went away and there 91 00:04:15.400 --> 00:04:17.639 was really nothing standing in the way. So my best 92 00:04:17.680 --> 00:04:20.000 guess is that someone internally got to him and said, 93 00:04:20.000 --> 00:04:23.000 if we stick on this path, ultimately, you're going to 94 00:04:23.040 --> 00:04:26.240 piss off all the voters because you've just literally raised 95 00:04:26.240 --> 00:04:27.800 the cost of them getting out of bed and trying 96 00:04:27.800 --> 00:04:29.920 to live their lives on a daily basis. So that's 97 00:04:30.040 --> 00:04:33.240 just Columbia. We have yet to get to the big ones. Yeah, 98 00:04:33.399 --> 00:04:36.600 but you know, I guess, I guess we can declare 99 00:04:36.680 --> 00:04:38.680 that that went the United States way. 100 00:04:38.800 --> 00:04:41.279 So far, so so far well, and I think that's 101 00:04:41.279 --> 00:04:43.720 an illustration of maybe they need us more than we 102 00:04:43.759 --> 00:04:44.199 need them. 103 00:04:44.600 --> 00:04:47.079 I don't know what in that particular case. Yeah, that's 104 00:04:47.120 --> 00:04:49.399 why I said, that's Columbia. We'll see what happens with 105 00:04:49.480 --> 00:04:50.639 our other larger trading partner. 106 00:04:50.720 --> 00:04:52.560 Yeah, no doubt. It's most notably China. 107 00:04:54.120 --> 00:04:54.439 Correct. 108 00:04:54.480 --> 00:04:57.680 Yeah, well, we've been down that path before, and there's 109 00:04:57.720 --> 00:05:00.000 more going on with China than just a trade and balance. 110 00:05:00.120 --> 00:05:02.279 It's the way they do business that we're really trying 111 00:05:02.319 --> 00:05:05.600 to adjust our relationship with them, and so we're playing 112 00:05:05.600 --> 00:05:07.319 our own games with him. That's playing out as we 113 00:05:07.360 --> 00:05:09.720 see in the headlines every single day with who's going 114 00:05:09.759 --> 00:05:12.360 to buy TikTok. And first of all, I am not 115 00:05:12.439 --> 00:05:15.959 an international business law expert. I still am fuzzy on 116 00:05:16.000 --> 00:05:18.199 the idea that the United States can. 117 00:05:18.079 --> 00:05:19.199 Force TikTok to sell. 118 00:05:19.240 --> 00:05:22.199 I believe it's still TikTok's option to simply not deal 119 00:05:22.240 --> 00:05:24.120 in the United States, except that's going to cost an 120 00:05:24.240 --> 00:05:25.240 enormous amount of money. 121 00:05:25.759 --> 00:05:29.040 No, it is absolutely their prerogative. And you know, honestly, 122 00:05:29.079 --> 00:05:30.519 I think the way the law was written, in the 123 00:05:30.560 --> 00:05:32.439 way it was passed, Donald Trump doesn't even have the 124 00:05:32.480 --> 00:05:37.120 authority to extend the band because there is no active 125 00:05:37.160 --> 00:05:40.439 buyer in play. That was a contingency for the ninety day. 126 00:05:40.439 --> 00:05:44.240 He had a ninety day extension provision in that bill. 127 00:05:44.759 --> 00:05:47.079 So if there was someone sitting across the table from 128 00:05:47.079 --> 00:05:50.680 TikTok and negotiating at the time the band went into effect, 129 00:05:50.920 --> 00:05:53.480 then he could hold it off for up to ninety days. Well, 130 00:05:53.560 --> 00:05:57.240 there isn't, and there wasn't yet He's still held it up. 131 00:05:57.319 --> 00:06:00.000 So I mean, if they went into court and challenge 132 00:06:00.240 --> 00:06:03.279 his order stopping the ban from kicking in. I think 133 00:06:03.519 --> 00:06:08.240 whoever challenged it would win because there's no active buyer right. 134 00:06:08.319 --> 00:06:10.279 At some point it has to be it has to 135 00:06:10.360 --> 00:06:12.040 go down the way. It's written in black and white 136 00:06:12.040 --> 00:06:13.839 on a piece of paper, and there there is no 137 00:06:13.920 --> 00:06:15.759 basis for how. We can't see how this is going 138 00:06:15.839 --> 00:06:17.959 to come out yet, but it's not matching up with 139 00:06:18.000 --> 00:06:20.319 the way the law was written. So but that's just 140 00:06:20.360 --> 00:06:22.199 an example of what we're going to the kind of 141 00:06:22.199 --> 00:06:24.160 battles we're going to see over the next four years 142 00:06:24.199 --> 00:06:26.720 as this kind of global business order sorts itself out 143 00:06:26.759 --> 00:06:27.199 over time. 144 00:06:27.639 --> 00:06:32.480 What's your take on the exempting overtime pay from income taxes. 145 00:06:32.480 --> 00:06:35.560 I think I saw that in the rundown and I'm 146 00:06:35.560 --> 00:06:37.959 just scratching my head, you know, because he wanted to 147 00:06:38.000 --> 00:06:43.240 exempt taxes or rather tips from taxation, and as well 148 00:06:43.399 --> 00:06:47.399 not exempt he's also exempt social Security benefits from income taxes. 149 00:06:49.319 --> 00:06:51.519 You know, honestly, Brian James, I'm one of these people. 150 00:06:51.519 --> 00:06:54.000 There shouldn't be any exemptions or anything. There shouldn't be 151 00:06:54.079 --> 00:06:56.199 any carve outs or provisions in the tax co that 152 00:06:56.240 --> 00:06:59.639 manipulate our behavior. I'm a flat tax guy, just pay 153 00:06:59.759 --> 00:07:02.040 a percent and call it a day, and don't fill 154 00:07:02.079 --> 00:07:04.800 out these massive forms and have to deal with a 155 00:07:04.839 --> 00:07:08.399 fifteen gazillion page income tax code. That's part of the 156 00:07:08.399 --> 00:07:10.720 problem of doing business. I mean, the tax laws are 157 00:07:10.800 --> 00:07:12.399 almost impossible to navigate. 158 00:07:13.319 --> 00:07:15.519 Well, I'm getting a message here that the into It 159 00:07:15.600 --> 00:07:17.839 people would like to have a word with Brian Thomas 160 00:07:17.879 --> 00:07:20.360 about his opinions he's sharing on air because they really 161 00:07:20.399 --> 00:07:23.720 like their turbo tax product that keeps people plenty confused 162 00:07:23.759 --> 00:07:26.680 and stuck to the idea that things have to be 163 00:07:26.720 --> 00:07:29.160 more complicated. Now, now I agree with you. I mean, 164 00:07:29.279 --> 00:07:32.040 I'm a simplification person, and at this point things have 165 00:07:32.120 --> 00:07:35.959 gotten so far beyond the ability to kind of control 166 00:07:36.000 --> 00:07:38.279 and predict I would be very willing to try an 167 00:07:38.399 --> 00:07:41.360 entirely new tax system just to see if that can 168 00:07:41.360 --> 00:07:43.959 simplify things for people and make it more fair. Now 169 00:07:43.959 --> 00:07:46.680 you asked my opinion of the idea of taxing this 170 00:07:46.839 --> 00:07:49.800 and not taxing that. Those different headlines that are coming 171 00:07:49.800 --> 00:07:53.120 down the plant. First off, those have to get approved, right, 172 00:07:53.160 --> 00:07:55.720 these are these are still political promises at this point, 173 00:07:56.680 --> 00:08:00.199 and I would say that my biggest frustration with this, 174 00:08:00.519 --> 00:08:02.680 while the benefits to people who are receiving those things 175 00:08:02.759 --> 00:08:06.000 are obvious. It doesn't do any good at all if 176 00:08:06.000 --> 00:08:08.720 we don't offset with the spending side of things. Yeah, 177 00:08:08.720 --> 00:08:11.360 we're simply reducing the amount of income we've got to 178 00:08:11.399 --> 00:08:13.560 pay our bills. That's not going to help in the 179 00:08:13.600 --> 00:08:15.959 long run. That's simply a campaign promise. So I really 180 00:08:16.000 --> 00:08:17.800 want to see an adult version of how this is 181 00:08:17.839 --> 00:08:18.720 all going to come out. 182 00:08:18.720 --> 00:08:19.160 Hey man. 183 00:08:19.240 --> 00:08:22.800 And look, someone wrote in big capital letters spending because 184 00:08:23.319 --> 00:08:27.480 the conclusion from the tax Foundation article was that they 185 00:08:27.560 --> 00:08:30.759 estimate their proposals would increase the ten year budget deficit 186 00:08:30.800 --> 00:08:34.799 by three trillion dollars. And lord knows, we don't need 187 00:08:34.840 --> 00:08:37.159 a bigger budget deficit. And three trillion dollars is a 188 00:08:37.200 --> 00:08:39.039 lot of money last time I checked. And anything we 189 00:08:39.039 --> 00:08:41.360 can do to stop that from happening should be done. 190 00:08:41.399 --> 00:08:44.039 And that's where spending comes in. We can really cut 191 00:08:44.080 --> 00:08:47.600 spending and curb that sizeable deficit. 192 00:08:48.480 --> 00:08:50.639 Right. One of the other impacts we just got done 193 00:08:50.679 --> 00:08:52.240 talking about it is remember, tariffs are going to have 194 00:08:52.240 --> 00:08:55.320 an effect here too. Tariffs and taxation are all somewhat 195 00:08:55.320 --> 00:08:57.559 hand in hand when we're talking about making sure this 196 00:08:57.759 --> 00:09:00.720 country has the ability to stay afloat. From a finance perspective, 197 00:09:01.039 --> 00:09:03.200 tariffs are going to hurt are going to hurt people 198 00:09:03.240 --> 00:09:06.559 at the bottom of the line here. And if we're again, 199 00:09:06.559 --> 00:09:08.879 if we're simply running up more and more debt because 200 00:09:08.919 --> 00:09:10.320 we don't we want to be able to have the 201 00:09:10.360 --> 00:09:13.960 headline that we're not taxing groups who are struggling, then 202 00:09:14.080 --> 00:09:16.240 we have absolutely got to find a way to not 203 00:09:16.360 --> 00:09:18.639 spend those taxes in the first place. I haven't heard 204 00:09:18.639 --> 00:09:21.159 a single peep yet about the things we are not 205 00:09:21.279 --> 00:09:24.960 going to do anymore to kind of save on those 206 00:09:25.399 --> 00:09:26.120 different items. 207 00:09:26.279 --> 00:09:29.639 Stop funding shrimp on treadmill research. That can be number 208 00:09:29.639 --> 00:09:31.879 one and no one could argue with that. We're going 209 00:09:31.960 --> 00:09:35.159 to continue with Brian James in a moment talk about 210 00:09:35.200 --> 00:09:38.559 home sales. 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That's what we're doing right now 239 00:10:59.639 --> 00:11:03.159 with Brian James will allwor Financial moving over and you know, 240 00:11:03.360 --> 00:11:05.519 everybody's looking around for the day when mortgage rates are 241 00:11:05.519 --> 00:11:07.480 going to drop so people can afford to own homes. 242 00:11:07.480 --> 00:11:10.720 And I guess we're looking at what roughly seven percent 243 00:11:10.759 --> 00:11:11.720 current mortgage rates. 244 00:11:12.799 --> 00:11:15.519 Yeah, so seven percent current mortgage rates. And that's been 245 00:11:15.559 --> 00:11:18.759 that way since about mid twenty three. So mortgage rates 246 00:11:18.759 --> 00:11:21.519 in this recent cycle. The average peaked around seven point 247 00:11:21.559 --> 00:11:24.240 eight percent in October of twenty twenty three, and we 248 00:11:24.320 --> 00:11:27.039 fluctuated around that ever since then. We've right now, we're 249 00:11:27.120 --> 00:11:29.600 kind of we've hit a plateau, right about seven percent 250 00:11:29.679 --> 00:11:31.720 or so, is what I'm hearing, and it's it's having 251 00:11:31.759 --> 00:11:35.360 impacts on, of course, people's decisions of whether to buy 252 00:11:35.399 --> 00:11:38.279 that bigger house or move to the next neighborhood. And 253 00:11:38.600 --> 00:11:40.720 you know, the things that we used to take for granted, 254 00:11:40.759 --> 00:11:43.080 we had low interest rates for so long that people 255 00:11:43.080 --> 00:11:46.559 would make decisions for their lives and their families without 256 00:11:46.639 --> 00:11:50.919 regard for what these uncontrollable numbers. What the impact was. 257 00:11:51.279 --> 00:11:54.000 Now I'm hearing about people making decisions to well we 258 00:11:54.080 --> 00:11:55.600 have to stay put a few more years. We just 259 00:11:55.799 --> 00:11:58.440 we can't give up this three percent four percent interest 260 00:11:58.799 --> 00:12:00.799 rate on our mortgage. Sure, So I'm not going to 261 00:12:00.879 --> 00:12:02.799 take this job opportunity, or we're going to stay in 262 00:12:02.840 --> 00:12:04.879 the smaller house. You know, I've been doing this for 263 00:12:04.879 --> 00:12:07.240 thirty years, and I have not had conversations like this 264 00:12:07.320 --> 00:12:09.480 because we've been so spoiled for so many decades. 265 00:12:10.080 --> 00:12:12.759 Yeah, I imagine so, and you know, I'm sorry. I 266 00:12:13.159 --> 00:12:16.039 lived through super high mortgage rates. You know, my wife 267 00:12:16.039 --> 00:12:18.440 and I bought our first home. I've pointed out before 268 00:12:18.480 --> 00:12:21.320 we got a seven to twenty three balloon and had 269 00:12:21.320 --> 00:12:23.480 to do We paid three points to get it down 270 00:12:23.519 --> 00:12:26.480 to eight and an eighth. So it seems to me 271 00:12:26.559 --> 00:12:29.360 that the interest rate is not the thing that's the 272 00:12:29.399 --> 00:12:32.840 big problem, more so than the cost of homes went 273 00:12:32.919 --> 00:12:36.399 through the blanking roof. There's not an available supply of 274 00:12:36.480 --> 00:12:40.159 decent homes in an affordable realm, and COVID of course 275 00:12:40.200 --> 00:12:42.200 caused that as well. People were buying up real estate 276 00:12:42.320 --> 00:12:46.120 left and right, and so in inventory is not sufficient 277 00:12:46.159 --> 00:12:49.200 to meet demand. So I think we need more affordable 278 00:12:49.240 --> 00:12:51.559 sized homes, and I think more people could still buy 279 00:12:51.639 --> 00:12:55.799 in spite of the fact the interest rates currently seven percent, right, And. 280 00:12:56.039 --> 00:12:58.879 I think but another factor here, comparing those two time 281 00:12:58.919 --> 00:13:01.080 frames too. When you bought your house, we had just 282 00:13:01.159 --> 00:13:03.039 come out of you're speaking in the early eighties there, 283 00:13:03.080 --> 00:13:07.679 I believe, in oh nineties, okay, all right, so well 284 00:13:07.720 --> 00:13:09.720 similar points. We had just come out of a recession, 285 00:13:10.120 --> 00:13:14.320 uh in the but the eighties were fairly strong economically speaking, 286 00:13:15.080 --> 00:13:17.440 and we, like you said, we didn't have the high 287 00:13:17.519 --> 00:13:20.639 prices of houses that we do now. And so the math, 288 00:13:20.840 --> 00:13:25.039 the metrics are just completely different in terms of how 289 00:13:25.039 --> 00:13:26.799 you're going to make that decision. But I think I 290 00:13:26.799 --> 00:13:28.759 think we've just come out of a period where, again, 291 00:13:28.799 --> 00:13:32.320 people were so spoiled. We we I think kind of 292 00:13:32.320 --> 00:13:35.480 became a little convinced that three percent mortgages are normal, 293 00:13:35.879 --> 00:13:39.159 not the absolute bottom rate we've ever seen in history. 294 00:13:39.360 --> 00:13:41.320 And I think that's causing a bit of hesitation with 295 00:13:41.399 --> 00:13:43.279 people thinking we're going to get right back down there 296 00:13:43.279 --> 00:13:46.200 pretty quickly. But as long as inflation is hanging around, 297 00:13:46.240 --> 00:13:48.960 I don't I don't see that coming really anytime soon, 298 00:13:49.600 --> 00:13:51.840 simply for the fact that we have to keep an 299 00:13:51.840 --> 00:13:54.559 eye on inflation and we've done everything we can to 300 00:13:54.559 --> 00:13:57.360 get rates back down from you know, intrace themselves back 301 00:13:57.360 --> 00:14:00.480 down from the eight nine percent range, speaking of the 302 00:14:00.480 --> 00:14:02.919 the federal reserve rates back down to the close to 303 00:14:02.960 --> 00:14:06.799 three percent rate. But that still is leaving mortgages because 304 00:14:06.799 --> 00:14:10.440 there's still a component of demand that drives where mortgage. 305 00:14:10.159 --> 00:14:10.840 Rates sit as well. 306 00:14:10.879 --> 00:14:12.879 So we got little ways to go there, and I 307 00:14:12.879 --> 00:14:14.919 think maybe some people are hanging on a little bit 308 00:14:15.000 --> 00:14:16.799 too long to the idea that it has to get 309 00:14:16.799 --> 00:14:18.399 back down to three percent before I can make a 310 00:14:18.440 --> 00:14:20.000 decision to affect my family. 311 00:14:20.399 --> 00:14:24.320 Well, do you recommend or is there a suggestion that 312 00:14:24.320 --> 00:14:26.960 people not pursue like an adjustable rate mortgage. I mean, 313 00:14:26.960 --> 00:14:28.799 if you think the interest rates have maxed out and 314 00:14:28.840 --> 00:14:30.759 are going to ultimately drop, I know that might be 315 00:14:30.759 --> 00:14:33.399 a dangling care for some people to consider, but it's 316 00:14:33.440 --> 00:14:35.080 like me, going with the seven to twenty three. We 317 00:14:35.159 --> 00:14:38.360 figured the rates would be down by the time we 318 00:14:38.519 --> 00:14:41.320 had to refinance or lock it in after seven years, 319 00:14:41.320 --> 00:14:45.279 and of course that's in fact what happened. So what's 320 00:14:45.320 --> 00:14:48.159 your thoughts on adjustable rate mortgages? 321 00:14:49.120 --> 00:14:51.000 So, yeah, I mean I think they can be I think, 322 00:14:51.360 --> 00:14:53.039 by the way, what you're referring to is these are 323 00:14:53.039 --> 00:14:55.320 called arms adjustable rate mortgages. There can be a five 324 00:14:55.399 --> 00:14:57.039 year ARM, you can have a ten year ARM. Seven 325 00:14:57.120 --> 00:14:59.519 year basically means that you lock in your rate now 326 00:15:00.039 --> 00:15:01.559 and it's going to be somewhere in the ballpark of 327 00:15:01.600 --> 00:15:05.200 a market rate, but it will adjust to whatever that 328 00:15:05.240 --> 00:15:08.679 market rate is after that period has ended. So if 329 00:15:08.720 --> 00:15:10.840 we are sitting at a period which we kind of 330 00:15:10.840 --> 00:15:12.519 are right now, where we feel like rates will be 331 00:15:12.559 --> 00:15:14.720 lower in the future, Again, we're not talking six months 332 00:15:14.720 --> 00:15:17.799 from now, We're talking several years by an ARMED, then 333 00:15:17.840 --> 00:15:20.480 you can benefit by putting a mortgage in place that 334 00:15:20.559 --> 00:15:23.360 will drop if rates have dropped at that time. And yeah, 335 00:15:23.639 --> 00:15:25.360 I'm a fan of that. It's a little bit of 336 00:15:25.360 --> 00:15:27.440 a different thought process. I didn't want anybody to do 337 00:15:27.480 --> 00:15:29.679 an ARM. You know, three four years ago, we were 338 00:15:29.720 --> 00:15:32.639 sitting in the opposite situation where rates were extremely low 339 00:15:32.720 --> 00:15:34.519 and your adjustable rate was going to go up on 340 00:15:34.559 --> 00:15:36.519 you in five years, yep, And we had people kind 341 00:15:36.519 --> 00:15:39.240 of in a bit of a panic making sure they 342 00:15:39.240 --> 00:15:42.960 got it paid off or refinanced before that ARM came due. 343 00:15:43.000 --> 00:15:44.559 This is a little bit of the opposite where it 344 00:15:44.600 --> 00:15:47.039 can be. There are tools out there if you're thinking 345 00:15:47.080 --> 00:15:49.039 differently than three four years ago. There are tools out 346 00:15:49.080 --> 00:15:50.200 there that can help you, and I think it's a 347 00:15:50.200 --> 00:15:52.759 good thing to do as long as it works within 348 00:15:52.840 --> 00:15:55.639 your overall financial plan, which sometimes has more to do 349 00:15:56.240 --> 00:15:57.000 than just money. 350 00:15:57.279 --> 00:15:59.360 Indeed, we'll pause R and I'm bring Brian back to 351 00:15:59.399 --> 00:16:02.080 talk brief. I'm sure about the thirty two hour work week, 352 00:16:02.159 --> 00:16:05.559 and then also apparently looking at your phone may cost 353 00:16:05.639 --> 00:16:09.799 you opportunities at work. Don't do that one more with 354 00:16:09.799 --> 00:16:12.399 Brian James this Monday. Monday, I'll be right back after 355 00:16:12.399 --> 00:16:13.080 these brief words. 356 00:16:13.200 --> 00:16:15.879 Fifty five KRC the talk station. 357 00:16:17.320 --> 00:16:18.879 We'll have a sunny day to day, a high thirty 358 00:16:18.879 --> 00:16:21.080 eight overnight, some clouds and a drop to twenty eight. 359 00:16:21.519 --> 00:16:24.200 Sunny skies tomorrow with a higher forty four during the day, 360 00:16:24.240 --> 00:16:26.879 partly cloudy overnight down to thirty two, and on Wednesday 361 00:16:26.919 --> 00:16:28.440 it's going to be partly cloudy and going up to 362 00:16:28.480 --> 00:16:30.679 forty four twenty degrees. 363 00:16:30.759 --> 00:16:32.919 Right now, time for traffic from u. 364 00:16:32.879 --> 00:16:35.960 SEUT Traffic Center. Expect more at you see health, more 365 00:16:36.000 --> 00:16:40.120 twenty court trials, more treatment options for personalized care, more 366 00:16:40.200 --> 00:16:42.840 chances to get you back to being new. Visit u 367 00:16:42.960 --> 00:16:46.840 seout dot com. Southbound seventy five continues slow through Blackland 368 00:16:46.840 --> 00:16:50.159 ass inbound seventy four, but the lay times have dropped 369 00:16:50.200 --> 00:16:52.519 under the ten minute mark. Now between north end and 370 00:16:52.600 --> 00:16:56.080 seventy five there's a wreck he's found two seventy five 371 00:16:56.080 --> 00:16:58.799 and seventy five. Tramping slows a bit from seven to 372 00:16:58.840 --> 00:17:02.840 forty seven. King Ramont fifty five krs. The talk station. 373 00:17:04.240 --> 00:17:06.599 A twenty eight fifty five caracity talk station Brian Thomas 374 00:17:06.640 --> 00:17:09.839 and Brian James doing money Monday. Buddy Levy with the 375 00:17:09.839 --> 00:17:13.119 book Realm of Ice and Skies up next. He's into 376 00:17:13.599 --> 00:17:15.839 Arctic exploration history and that's what that's about. 377 00:17:16.039 --> 00:17:16.519 Brian James. 378 00:17:16.519 --> 00:17:18.319 Real quick, before we get away from the real estate topic. 379 00:17:18.319 --> 00:17:23.440 It's just I saw an article about real estate insurance 380 00:17:23.440 --> 00:17:25.480 has just really gone through the roof. We apparently had 381 00:17:25.480 --> 00:17:29.799 two consecutive years of double digit increases in premiums and 382 00:17:29.799 --> 00:17:32.519 it just sort of it just brings into focus. Just 383 00:17:32.559 --> 00:17:35.680 because you can afford the mortgage payment, you got to 384 00:17:35.720 --> 00:17:39.039 remember maintenance upkeep insurance, which is a variable that it's 385 00:17:39.039 --> 00:17:41.079 going to you know, maybe go through the roof. 386 00:17:41.640 --> 00:17:42.400 Energy bills. 387 00:17:42.440 --> 00:17:44.160 I mean, who knows how much the price of energy 388 00:17:44.200 --> 00:17:45.279 is going to be, but you got to pay the 389 00:17:45.480 --> 00:17:48.279 heating and air conditioning bill every month, keep your electricity on. 390 00:17:48.400 --> 00:17:51.160 I mean, it's just so much more than I think 391 00:17:51.200 --> 00:17:54.599 people perceive you as a financial planner. Is this the 392 00:17:54.599 --> 00:17:57.079 type of thing you walk through your soon to be 393 00:17:57.559 --> 00:18:02.160 maybe a home purchasing client. It's through to analyze this 394 00:18:02.279 --> 00:18:04.640 what it's all going to cost on a monthly basis 395 00:18:04.720 --> 00:18:05.880 or an annual basis. 396 00:18:06.400 --> 00:18:09.400 Yeah, absolutely, And I would say we also talk about 397 00:18:09.400 --> 00:18:12.079 that with our current home owning clients because we're in 398 00:18:12.079 --> 00:18:14.880 an environment we haven't seen before. So you know, it's 399 00:18:15.079 --> 00:18:17.119 one thing to look at what is the cost of 400 00:18:17.160 --> 00:18:19.799 me living my life right now? But the whole point 401 00:18:19.799 --> 00:18:21.440