Diversification & Moderation: Balancing Your Financial Plan

[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. [00:00:18] Speaker B: This is another money show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.R. and Anthony are committed to helping more Americans like you optimize their inc. Reduce their tax risk and reach financial freedom. So let's start the show. Here are your hosts, Anthony Correio and J.R. rochford. [00:00:42] Speaker C: Here we are, your hosts, Anthony Correo and Junior Rochford, taking a break from our day to day as financial advisors. And I'm taking a break from vacations to come back and share things that you may not hear on other financial radio shows. We aware the last thing you need is another money show, but we appreciate you being here. And I think I forgot where I said that. We are financial advisors. That's why I shouldn't take breaks. I forget all of these things almost immediately. [00:01:09] Speaker D: No, you should take breaks. It was nice and quiet in the office. It was good. I got a lot of sleep, a lot of rest in the office. Cops. [00:01:15] Speaker C: You had way more fun with Joe than you do with me, so I get it. [00:01:18] Speaker D: Oh, for sure. Yeah. So let's, let's get into it. As always, I'm going to start out with shout outs. Shout outs. This week, Matt McClure babysitting for two weeks. That was awesome. I love the adult supervision. Sam, don't worry. We missed you. You're still the one and only Sam Davis. But Matt did a great job. He's. He's so nice. You know, it's so funny because I know he does real financial shows and he gets here and we're like, you know, hang on, Matt. And he. And he just. Yeah, he's super mellow. The other shout out, of course, Joe Jaquin, thank you so much for being with me. Yeah, last week's show was. I mean, the first half was kind of chaotic. I rattled through a bunch of cryptos that I think are just hilarious and kind of telling you what a convoluted field that is, what a convoluted sector. And then I had Joe on to give you some perspective. And I only got two. I'll call them. Not complaints by any means, but I'll call them two. Negative. One was like you've been saying for years, you don't trust crypto. You don't like crypto. Now all of a sudden you're pitching crypto? I still think it's baloney. I think it's error. I always talk about when the government says it's coming. My whole thing is I've dipped my toe in the water with an ETF of crypto. I've bought a couple of cryptos. I know Anthony's bought at least one that I know of. This is just another one. I'm going to see what happens. You know what the bottom line is, though? Moderation and diversification. So I put in what I thought was reasonable. If I lose every penny of it, it just makes it another investment. Are you telling me you put money in the stock market and you lose it? Well, that's the stock market. That's different than cryptos. You know somebody that put $10,000. Let's. Let's use 2016. You put 10 grand you in the S&P 500, because that's what Dave Ramsey says to do. You know, he's a good financial advisor. Or wait, is he an author? So Dave says, Put 10 grand in the S&P 500. Where are you today? You're doing all right. I mean, the market obviously has been on a tear. Let's say you put the same 10 grand in Bitcoin, which today is at 113,000 a coin. You're a multi, multi, multi millionaire on the bitcoin side. Do I think it's baloney? Yes. Do I think I'm tired of missing out? Yes. I'm going to continue to do what I think is smart, safe based investing. If you hedge your bets, I would say you are smart. So to the people that want to sign up for the coin, hopefully you already have. Excellent. I hope we make this ride together. I will tell you an update from last week to this week. In one week, last week. And then as soon as I get to where I want to, I'm going to pull my initial investment out and then I'm going to ride on their money. I'm going to let that go. I do want you to know with our show, the reason we do this show, we want you proactive, not reactive. There's where crypto might come in. Because I'll tell you what, it's coming, is it six months or two years out? But be proactive. Start researching it now, at least, like Joe said, be able to work your way around it. So whatever coin lands up as the government's choice, you'll be able to know how to operate, you know, stop Putting your head in the sand. Our other thing. We want you prepared, not scared. I mean, look around you. We're in the Phoenix, Arizona area. Sam, you probably don't know this, but yesterday there was a stabbing at U of A in Tucson. There was a stabbing. A kid died at Maryville High School. The world around you is really, really chaotic. You know the best thing you can do? Should you worry about all these things around you? No, probably not. But you better get your house in order and be under the radar. Yeah, I don't know. I mean, I brought up last week. You know, we're kind of unusual. We help you do normal financial planning, like traditional financial planning. We also kind of, we like to help you with how much food and water you should have brought up. Marcine or Tower Garden. We like to make sure that you've hedged all your bets getting into this. Speaking of appointments, you know, if you're one of the next 500 callers, if you're one of the first 500 callers, we're going to give you a no cost free, no obligation conversation with us. So get on the phone, come in and see us. We do need to make sure we let you know we do normal financial planning. Come in the office. If you have an over 401k, you're ignoring it. You know, you think it's free. It's just sitting there. I can tell you the cost of 401ks is usually generally fairly high. So we can address that with you. We can help you with what to do with that. If you're watching, if you're watching the world right now, it's very, I mean, these markets, you know, the Dow Jones, you know, it's, it's. I've been saying there's cracks in it, but I've been saying that for 15 years. It's on another tear. The Dow Jones is on another tear up. I don't get it. So we want you proactive, not reactive. Come in, let's look at your statements. Let's talk about what to do when this finally starts changing. Moving on. The number one fear of retirees. What? What is it, Sam? Anthony, what's the number one fear of retirees? Running out of money. Running out of money. What, do we have solutions for that or how do we, you know, my whole thing, in an uncertain world, let's give you some security, let's give you some safety. Let's just. Here's an example for you. Let's say you came in and you had $100,000 and this is outside of your income, your retirement savings. You're like, I don't know what to do with this. We're going to diversify, we're going to moderate, we're going to ladder it out. One general concept, after we put some of it in physical cash in your home safe or a good hiding space after we put a little bit of it in Texas coin, what we're going to do, let's say we have $80,000 left of the 100. If you were able to put, let's say 50 of that in something safe, that can only go up, but it can't go down. If you did that with the other 30 because you're not convinced that this bull run is done by any means. The other 30, let's say we took extra risk because the safe part bought us time. That's the kind of stuff we talk about. You know, we always say everybody wants 10 to 20% return completely liquid, no risk. You know, they'd prefer no fees. A lot of things. We have to figure out what's best, one person, one couple, one family at a time and do that for you. And that's what we do in the office. So come on in. We had something unusual happen last week. I got the mail and it was actually the day that I recorded with Matt and Joe. There was a letter, a big legal size packet letter that came in the mail from a listener and it was anonymous. Actually the name of the listener was a period anonymous. So if you're listening again this week, which I'm guessing you are, because you probably want to hear if we have any feedback you offered for us to just put this in the circular file and not address it. But you know darn well we are going to address it. And by the way, Anthony, I think that I know who sent this to us. I think it was creative, the zip code it was sent from. But I think there's only one person that could do this kind of work that we've met. I'm not going to say his name. I'll say he lives in Sun City West. One person keeps coming to the top of my mind because this stuff that he sent is really, really in depth. It's. I would say it's genius level writing. It also came with a little. An article or whatnot, a little part of a book for me to read, which I haven't done yet. [00:08:29] Speaker C: That part I didn't get to. That part I have not. [00:08:31] Speaker D: I have. Things are so hectic. I mean, you've been gone for a while. It's been just crazy around here, but I will but the back to the email so I just want to read a couple pieces of it. It was dated the 11th of August and if you're not anonymous and you're listening to this send us stuff. This is your show. We put this show on. It's current events, how they're going to affect your future. But tell us what you want. I know we've been on for over three and a half years. We've never duplicated an episode. We've done a new show for you, whether it's Christmas week, whatever, every week. But some people are probably tired of me. Let us know if you want more Anthony. Let us know. I know that Anthony wants more Anthony and less Jer, but if others of you do, then we'll actually change it. My youngest son Jay in the background just said he wants less Me too. That's fantastic. We should get Jay on here. So you really see it's a family of weirdos. So except for Sandy, she's completely normal. So send us your show ideas. What do you want to hear? If you want more financial, if you want more shock, whatever you want, we'll do it. Anyway, back to Anonymous. Dear Junior Rochford, I heard on your fascinating radio show I'm reading this verbatim your fascinating radio show that people send you things. So I send along this stuff anonymously so you can toss it in the round file if it doesn't whet your interest. No pressure, no harm, no foul. Now I'm going to read something at the end of it and then I'm going to sum it for you because it is six full entire pages of fairly small front print at the end here. Let's see, as a second bonus that you didn't solicit. Also, to maybe go straight to the circular file is a different take on your openness to conspiracy theories. I get why you are open to them. In this world of corruption upon corruption, it seems almost nothing is known for certain as Donald Rumsfeld's Unknown. Unknowns are prevalent. Very last line. Anyway, if the two above offerings never escape from the circular file to forever rest in peace there, keep doing the show. It's a breath of fresh air that I try never to miss. Even with your sidekick adding verve like a curmudgeony Ed McMahon to your Johnny. So this guy is obviously a fan of mine and not Anthony's, which is. [00:11:00] Speaker C: Another bonus favorite part of the letter. [00:11:02] Speaker D: Curmudgeon. I believe I've used that word. Or maybe you used it against me. But I actually think I'm the happier of the two of us. [00:11:09] Speaker C: You're the bummer. [00:11:10] Speaker D: No, I'm not a bummer. I'm always upbeat. You're just me. You're even. Anyway, so now let's summarize what this person sent and the reason. I'm pretty sure I know who it is. There's, I mean, this is just crazy smart, intelligent, well thought out stuff. So I think it's the Highlander. I think there can only be one and he knows who he is. [00:11:32] Speaker C: Yeah, the analytics behind it were pretty good. [00:11:34] Speaker D: Yes, and it's very well thought out. I mean, this is, this is great. So, okay, the summary of this. The person likes what we talk about with the safe money. The person even singled out FIAs, which as you probably know, means fixed indexed annuity, so. And by the way, I like FIAs too, because. Tell me another product where you can make money. You can go up to a cap or to a certain percentage every year if things go well. But if we have a down year or two, you can't lose money. Name another product. Cd. No, that just can only go up. It can't go down. It can't. It doesn't have nearly the potential. It has a 1099 with it every year. Even if it's non qualified. There's drawbacks. Let's say you can find a product that can go up pretty well and really doesn't have much downside, which this, this person I'm going to get in that minute, you know, has an idea for you. Well, I have another question. Once you get into retirement, once you're ready to supplement Social Security, if you turn your FIA on for income and you're getting, let's say, $2,000 a month, and the mortality tables say you're going to pass away at 86. Let's use 86. At 86, you've intersected your $2,000 a month runs out. So now you have no money left and your income should stop. If you had a CD or a stock or a bond or a crypto or any other financial vehic I know of, but you have an FIA that is with an insurance company and the FIA says if you don't die by 86, you live to 96, you keep getting your 2000amonth. I, I, I'm just, I'm lost at how people don't add FIAs as part of their retirement puzzle. I, I'll never understand it. I guess the only reason I can understand it, well, I mean, because Jim Cramer, Dave Ramsey, Ken Fisher, Susie Orman said not to do it. It's an annuity. Ooh, it's annuity. Don't ever do an annuity. And by the way, we do know there are good and bad annuities. We will explain to you what the difference is between fixed and variable. We will explain to you. You know, there's different companies. So back to this. This person is in favor of FIAs, but says there's some limitations, like there's. There's caps or participation rates, which means you can't make 100% of your money. The alternate that this person laid out in very specific terms. He also. And I'm saying he, but I don't know that this person never said he. They also used to listen to a show called ota, the Online Trading Academy. I have listened to that show for many, many years. My thing is, it doesn't have to be one or the other. Why can't you put. Just rounding off numbers. Why can't you put $100,000 with OTAS program and $100,000 in an FIA and hedge your bets? That's what I was saying earlier. This thing with ota. OTA Online Training Academy teaches people. So you're going to pay them for the class. You're going to. You're going to pay them to teach you how to trade on your own. Part of the thing. And Anthony, I talked about this in fairly good detail yesterday. Part of the thing, we meet people all the time that do that. I was in this job in the late 90s. I remember when people were all quitting their jobs to be day traders. There was, there was no regulations against shorting things and naked shorts and all the stuff that I was watching. And I was like, oh, they're geniuses. You know what I learned over the years? People get lucky and they make money. I never see wealthy people that day trade. If it's part of a bigger puzzle, I've seen people do well. But you, you know, Anthony, what did you say yesterday? You don't know anybody who's rich that day trades? [00:15:25] Speaker C: Yeah, I've never heard of anybody doing successful at it. I was at a friend's a couple weeks ago, and he talked a little bit about his trading, but was referring to his neighbor who did it and how successful he was. I was like, but we're in a apartment complex in, like, Phoenix area. You know, it was nice, but it wasn't, you know, the Biltmore. This wasn't a $10,000 apartment in Manhattan. I was like, this is just standard living. And I was like, and I think he's got a day job too. So how, how successful can he be? I mean, you've been doing this 30 plus years. How many people have come in that have made a fortune day trading and come into your office and then gotten help first? How many people have talked to you about day trading and have never gone anywhere with it? [00:16:12] Speaker D: I am a hundred percent given enough time that it's just like a casino. A hundred percent. I have never seen it successful where somebody got to day trade for a living and retire doing so. I've never seen it. We've had clients, Anthony, you know, a bunch of them that have gone to the class. We talked about one yesterday that went through ota's class. We, we had, we've got a couple who retired, so they got a pension. They wound up getting their social securities. They have safe money with us. And, and they started getting into this. So I was like, that's beautiful. If you make this part of your puzzle, that's beautiful. That's diversification and moderation perfected. The problem is it went well for a short period of time and then they lost the gains. And then the company, the platform that they held, their, their alcohol license, whatever the company they were trading through, censored them. They were like, you're losing more than you're winning. We were, they, they made them go back to the class and take the class again before they could restart trading. And I was like, that's my, my experience. [00:17:12] Speaker C: So this letter was, it was very nice. [00:17:16] Speaker D: It was wonderful. [00:17:17] Speaker C: But essentially he was saying towards the end, like, he likes the show, he likes that we're a family practice kind of where we come from, and says, you know, why I would trust you guys to handle these sorts of things for me. And I have a securities license. I do handle stocks and bonds for clients. I think I've talked about that on the show. It's a small part of what we do just because we don't trust it. But once they've got all the safe stuff out of the way, why not add that diversification? Can I do trading like this for clients, though? And honestly, I'm not positive if I can. But I will be very honest and say I don't want to. I don't like options trading. I don't like the gambling. You know, if you're gonna buy, I'm of the kind of buy and hold kind of aspect. You know, right now for the, the clients that I am handling for, we've Got a ton in cash. You know, we're buying diversified ETFs to kind of span a certain different sectors that we think because again, you know, even the clients know, we think that the market could drop 50% overnight. 50 to 90% do. We could see the next 1920s Great Depression style drop and collapse just because there's no real backbone to anything going on. If that happens, all the clients have extra cash, they've got safe investments. But even in their, their portfolios there are managed money. We have cash for those opportunities. So we'll just be buying, you know, as things have gone up over the last few years, we've taken some off the table, taking some of the gains put into cash and just playing that waiting game. [00:18:56] Speaker D: You do realize that's what you're supposed to do. Before they had high frequency trading, computers and accounting practice scandals at Arthur Anderson and people buying marijuana stocks and Bitcoin. There used to be rules. It was buy low, sell high was the bottom line for financial planning. We've completely lost that. Money moves out of fear and greed. The last 15 years I would say, you know, the gold play, a lot of people buying gold was a little more fear. Now it's come into fear and greed. The market, 100% greed. [00:19:29] Speaker C: You know to that letter was options trading is supposed to allow you to kind of do what they do with FIAs to manage your, manage your risk. I mean a hedge fund is to hedge your risks. Yeah. Why does it work that way? There's still so much potential for major losses and I just, I will not do that with clients. [00:19:51] Speaker D: Money and risk and reward are synonymous. Risk and reward. I mean you have to understand the balance and how. The author put this to your point only I don't want to have to learn it or do it myself. Even though they say it takes up to only two hours per week. So I have another financial advisor, a nice standard insurance based person and have abandoned my pitch. But it still niggles at me. Why can't a financial advisor do the trading for those clients interested by merely doing it for himself and then having some AI robot or something do it for them too? Couple things, One, for us, us personally, we always say we protect and grow in that order. We are a safe based practice forever. My grandfather, my father, me and now Anthony. Our focus is on protection first, growth second. So we've used mutual funds over the years. Anthony is the newer school of managed money. He's the newer school using ETFs that really didn't exist when I came in well, they didn't exist. So it's a different world. The other thing is the risk reward that Anthony just brought up has never been this great, never in the history of the markets. You know, yesterday the 19th of August, you know, the Dow Jones hit, what was it, 45,000, 207. It set an all time record. The dow Jones, the 30 company. Dow Jones yesterday, you know, this week is Jackson Hole. Jerome Powell is going to talk on Friday. If he says we're not about to drop interest rates, what's the market going to do? Is the market going to go up to 90,000 the Dow? If he says we're going to drop interest rates, that everything is a newspaper headline. So anyway, so we are a safe based practice at our core. That's first. The second thing is the risk level has never been greater. The third thing is this is very, you know, Anthony has to. To has the pleasure of. Not has to has the pleasure of dealing with a compliance department. I really am not sure how an advisor with a compliance department. Anthony's a fiduciary. He's a. What is it? A investment advisor representative through a registered investment advisor. It's very. There's a lot of breaks there. There's a lot. You have everything compliance approved. I highly doubt they would let us do those two opposite ends of the financial planning spectrum. But I don't know. So to Anthony's point, he's not interested because he doesn't have the time and the want or desire. My thing is, you know, one thing that we've always thought is right, what is best for you as the client. If you need two different financial advisors, if you need somebody who's gone through the OTA school numerous times and has been very successful, put a portion of your money with that advisor. Put the larger portion with us. You're not. We have no jealousy, Bones, when it comes to other financial advisors. We tell people, go sit with the big wirehouses and sit with us and see who's a better fit for you. I literally went with one of our clients to her appointment at an Edward Jones office in Sun City west. You know, within the last year that was. And sat down and went with her. I'm like, I have no qualms at all about you diversifying and moderating. So I guess we just took a lot of time in this letter. But we appreciate it so much that the person took the time to do this and send it to this. And I hope at this point, after we've covered it, you let us know who you Are. And if you have more to send, we are all ears and eyes on this. Why don't we do this? Boy, that. We took up a half an hour already. I guess that's why Anthony hates me doing the show. We don't cover anything substantial. What did you say Yesterday? I spent 15 minutes just walking in circles before I cover anything. [00:23:47] Speaker C: This was very different. We covered a lot in this first half. [00:23:50] Speaker D: Hey, are you complimenting your. Your host, your co host? [00:23:54] Speaker C: Oh, mostly host. I don't know why I say host. I'm not a host. [00:23:58] Speaker D: You're a host. We're both hosts. I just, I commandeer the show. I'm just a little more aggressive on the airwaves than you are. You're the smart one. You're the engineer. You're. You're detail minutia. You're the smart one. I am storytelling big picture. So on the radio just said that you what? [00:24:16] Speaker C: The boring one. You could have just said that. [00:24:18] Speaker D: I mean, I guess to break. I don't want to hurt you. Yes. If you want to reach out to us, we'd love to have you come in and sit with us. If you want to sit with the exciting one, My name is J.R. rajbor. If you want to sit with the smart one, that's Anthony Correll. He's also the eye candy of the office. So there's a plus there. So reach out to us. 623-523-0444 or you can email us [email protected] we would love to have your show ideas, your questions. We'd love to sit down and be a second opinion on your finances and that sort of thing. Oh, and don't forget our YouTube channel. We need your help. We've got over 600 subscribers. I looked this morning, it was 627. So we're on our way. And we have over 335,000 views on our videos and shorts and that sort of thing. So thank you, Shelby. Thank you, Sam. It's moving. So we will be right back and we have some great articles today to get to. [00:25:15] Speaker B: Wouldn't you love another money show? You would if it were as good as this one. This is another money show with JR and Anthony. [00:25:33] Speaker A: Fixed annuities including multi year guaranteed rate. Annuities are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer. Do you want a steady stream of income for retirement? Then it's Time to Consider annuities I'm Matt McClure with the Retirement Radio Network powered by Amerilife. Gone are the days when most employers offered pensions with guaranteed lifetime payouts to their workers. But what if I told you that you can build your own personal pension? It's possible with an annuity. An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time, often for the rest of their life. [00:26:16] Speaker B: There are several options for you to. [00:26:18] Speaker D: Consider when choosing an annuity. Be confident in knowing that there is an annuity out there that can meet all of your needs. [00:26:24] Speaker A: Ford Stokes is founder and president of Active Wealth Management and author of the book Annuity360. There are several different types of annuities, including fixed variable and fixed indexed. [00:26:35] Speaker D: A fixed annuity offers a specific guaranteed interest rate on their contributions to the account. A fixed index annuity is an accumulation based product offered by an insurance company. The growth of your fixed index annuity is dependent on the performance of a chosen stock market index, but your money is not actually invested in this index. This offers you great growth potential and exceptional protection for your investment. [00:27:00] Speaker A: While each can provide tax deferred growth and a lifetime income stream, variable annuities put your principal at risk in the market. [00:27:07] Speaker D: If you are currently investing in a variable annuity, your funds could be in serious trouble if the market experience any downturns. [00:27:13] Speaker A: With so many possible choices to consider, it's essential you speak to a financial advisor or professional to help you make the best decision for your future. So are you ready to consider an annuity as part of your retirement plan? It's a key question to consider as you approach what should be your golden years with the Retirement Radio Network Powered by AmericanLife. I'm Matt McClure. [00:27:34] Speaker B: Thanks for listening to another money show. If you like what you're hearing, be sure to leave us a rating and subscribe to the show wherever you listen to podcasts. [00:27:44] Speaker D: Welcome back to Another Money Show. Thank you so much for being with us. We love your support. We always say we're little fish in a big pond and we really we need your help so hang in there with us. We thank you so much for being with us though. So moving on. You know, to finish up the anonymous letter, I want to thank that person one more time and I want to say something. I Yesterday afternoon I looked up the address that was put under anonymous and it's either a hair salon or an apartment complex. So this, this person, this was really cool. They really did this up. Where it was mailed was a. It was. Had a couple of different zip codes on it. So. But I did. The person that I think it might be, I pulled their file and I wanted to see if the handwriting on the envelope matched the handwriting of this client. We. Everything's digital. The applications are all online now. So I didn't. I found a couple signatures that weren't conclusive, but I did find a check. So I looked at the writing on the check and the writing on the envelope, and I. And I'm not convinced that this is not the same person. Anthony, I showed it to your mom. Your mom got home last night and I showed her a copy of the check in the envelope and I said, does this look like the same. You know what your mom said to me? Just. Do I look like a handwriting analysis? That's what I got at home. That's the support I got from home. So like mother, like son. Anyway, so I. You don't want to know what I told her she looks like when she said that anyway, so let's let that go. But thank you so much again, whoever you are, for sending that to us. I did have somebody reach out to me via text that want to know about gifting. And I replied to the text. I gave the answers the person needed. But I thought if you want to know that, maybe there's other people that want to know that, you know, we stay away from financial matters. But here's a question I got this week. So on gifting, the gifting amount for 20, 25 is $19,000 a person. So. And it's 38,000 a couple. So if you're married and you want to give your kids money, you can give them $19,000, your spouse can give them $19,000 for a total of $38,000 this year. If you have three kids times three. And then I also went further and let this person know the lifetime aggregate on gifting this year is 13.99 million. So if you're listening to us and you have 14 million that you're not sure what to do with, we're going to put some cash at home, we're going to buy some cryptocurrency, we're going to do some FIAs, we're going to introduce you somebody that works with OTA, and then we're going to gift 13.99 million to your family. [00:30:24] Speaker C: So how that works too, because people think you. They're limited to 19,000 per year, but you can gift more than that annual limit. It Just applies towards the aggregate. Yes. So there really isn't an annual limit then? [00:30:38] Speaker D: No, I mean, not really. And I got a question for you. I hope nobody from the IRS is listening, but it's just a question. It's not advice or a suggestion. What if you gift your kids cash, are you still supposed to report that? And if you are supposed to, and you do that, do you? [00:30:53] Speaker C: I mean, that's why cash is going away. So if you gift Texas, they're going to track all of your, your transactions. [00:31:00] Speaker D: Yeah. Well, I got news for you. Whether we like it or not, whether we believe it or not, it's coming. So whether it's taxes or something else is coming. Yeah, I mean the central bank, digital currency, the whatever's coming, I, it's going to get rid of yard sales, it's going to get rid of gifting, it's going to, it's going to change our life. Yeah, they can track you. And one of the things, if we get to it today I have an article on debanking and how that's, you know, under the Trump administration where they're trying to get rid of that as Trump himself was debanked, Milani was debunked, Barron was debanked. So it's kind of an interesting thing that you said that. So moving on, let's get into something that one of our client, well, actually a friend of ours, we want him to be a client, but a friend of ours from up in Snowflake sent this emailed me. This kind of puts things in perspective right now. The national debt in perspective, it's hard to fathom. 37 trillion. What does that even mean? And by the way, I looked in this morning, make sure you make your way to usdebtclock.org once in a while. It's interesting. We're at 37 trillion. 37. 256. So we're at 37 and a quarter trillion now. So very interesting. So, oh, Sam put up on the board. I didn't see that. Sam has $14. We're going to gift every penny of it, Sam. We're going to give seven to Anthony and seven to J.R. if that's okay. You don't have kids yet, so do the right thing. Take care of your friends over here in Arizona. We need it for our air conditioning bills this week. So 37 trillion. Here's some perspective. Every U.S. citizen would have to write a check for $108,566 to pay off the debt. Of course, a lot of people don't pay taxes. That means the taxpayer burden is much higher. Every US taxpayer would have to write a check for $323,053 to wipe out the debt. And that's on top of the taxes we already pay. Looking at it another way, 37 trillion is more than the annual GDP, the gross domestic product of China, Germany, India, Japan and the UK combined. It's hard to wrap your mind around how big 1 trillion is. Much less 37 trillion. Here's a few factoids to help you visualize just how big that number is. There are 1 million seconds in 11.5 days. A trillion seconds is about 32,000 years. If you could. Yeah, that's mind boggling. If you could say one number every second, it would take 11.5 million days to count to a trillion. I wonder how many days we have in our lives average. I don't think we have 11.5 million days. If you spent $1 million, $1 million every day since the birth of Christ, you still wouldn't have spent 1 trillion. If you line up dollar bills end to end, you could go to the moon and back around 203 times. With 1 trillion, you could wrap them around the earth around 3,893 times. If you stacked up $1 trillion bills, the Dollar Tower would rise to 67,866 miles. I'll do just one more here. If a cup of coffee costs you $3, where in the heck do you get a $3 cup of coffee now? You could buy 333 billion cups of coffee with 1 trillion. 1 trillion. Let me do one more. 1 trillion. You could give every person on earth approximately $125. I would like that. I would like to see people get 125 bucks. One trillion grains of rice would weigh about 20,000 metric tons. Keep in mind that all these examples illustrate the size of 1 trillion. The national debt is 37 times that number. Found that very interesting. We forget we throw around these trillions. We forget to break it down to the fact that no country has ever sustained proportionately debt like we have. The BRICS nations are still alive and well and growing like a weed and they're going to replace us. They're in the de dollarizing stage now. They're going to be in the replacement phase soon enough. Our government is getting their little fingers in everything and they are straight out saying that we are going to have stable coins, we're going to have cryptocurrency backed by the full faith of it's hard to say that without laughing. Of the government backed by US Treasuries, for example, that. That's rich. We're going to go from one fiat currency to a new one. But this one, it'll turn out different this time, so hang in there, kids. Anthony, what's your favorite financial movie of all time? [00:36:04] Speaker C: Wolf on Wall Street. [00:36:05] Speaker D: No. [00:36:06] Speaker C: Oh, oh, like actual financial movie. That's way less fun. Boom, Bust. Boom. [00:36:12] Speaker D: Boom Boss. Boom. We haven't said it in a couple months. You need to make your way to YouTube or wherever the heck it is right now and watch Boom Bus. [00:36:19] Speaker C: I'm gonna check right now. [00:36:20] Speaker D: I don't know. Yeah, it's still on YouTube. I was actually looking through my library last night, and I still have it bookmarked in there. [00:36:27] Speaker C: You still watched it yet? Still haven't watched it. [00:36:29] Speaker D: Yeah, My homework. [00:36:30] Speaker C: Breaking my heart. Fredo. [00:36:33] Speaker D: So Godfather was another financial movie. Like, all right, so you need to watch Boom Bus. Boom. I'm just. I. One of the people I was talking to about it thought it was the greatest movie ever. I'm like, oh, we need to bring that up to people. It really is a great movie. So you know something else? The same person I were talking about, we were talking about money buying you happiness. Have you ever heard the expression money doesn't buy you happiness? That is the biggest crock of you know what on the planet. Is that right? Sam, who just got back from vacation. Anthony, who just got back from two vacations. If you didn't have the money to take those vacations, would you be as happy as you are now? [00:37:09] Speaker C: No, I'd still be a curmudgeon. But also, who says I have money for all these vacations? I'm just throwing it on my. My GDP debt. [00:37:17] Speaker D: You're just. It's all wrapping up. [00:37:19] Speaker C: I want to do my little part for the country and build up my credit card debt. [00:37:24] Speaker D: I think that's a good idea. So let's get into some of these articles. I just, I didn't want to forget to bring up Boom, Bust. Boom. Reuters. Here's something for you from Reuters on the 19th. Oh, this was just yesterday of August. US wants equity stake in intel for cash grants approved under Biden. So the U.S. is seeking a 10% stake in Intel. They could demand equity from other companies. They already are. Got two articles to follow this. The latest push by the Trump administration into private businesses. So this is from Reuters on the 19th. US government wants an equity stake in intel in exchange for cash grants approved during the administration of the Former President Joe Biden Commerce Secretary Howard Lutnick said on Tuesday. White House Press secretary Caroline Levitt confirmed on Tuesday that Lutnick was working on a deal with intel to take a 10% government stake. The president wants to put America's needs first, both from a national security and economic perspective. They better focus on the national security aspect and less on the economic perspective. You know, I mean, I'm just saying you're 37 trillion debt. I don't need your advice on how to protect and grow my money. It's a creative idea that has never been done before, she told reporters. Congress did not require companies to offer equity when it created the cash grants as part of the 52.7 billion with a B Chips and Scion act in 2022. It is unclear how companies could be required to offer shares for grants. Are you telling me that money that was issued in 2022 still hasn't been spent and now we're going to start spending it on private companies in exchange for a share of those companies? Am I lost here? We're broke, kids. Broke is zero broke. I'm sorry, we're 37.256 trillion in the hole and you still have money for the CHIPS Act. Why don't we just put that down towards our debt and leave intel alone? That's just me, but nobody's asking me my thoughts. [00:39:33] Speaker C: Terrifying though, the thought of government starting to own private equity. And yeah, that's not a no, that's, that's a communist country which everybody loves to hate, but that's exactly what that is. [00:39:48] Speaker D: Yes. Couple more things from this article. The Biden administration literally was giving intel money for free and giving tsmc, I think that's the Taiwan semiconductor plant money for free. And all these companies just giving the money for free. And Donald Trump turning to saying, hey, we want equity for the money. If we're going to give you the money, we want a piece of the action for the American taxpayer. Lutnick said. Intel and tsmc, a Taiwan based chip maker, declined to comment. No kidding. I'm sure they didn't. I'm sure they're not really sure what to say yet. The Trump administration has been making a series of moves involving US companies, including proposing to allow Nvidia to sell its H2O chips to China in exchange for US government receiving 15% of the company's sales of some advanced chips to Chinese businesses and offering a similar deal with Nvidia's smaller rival AMD. All right, so now we're at intel, we're at AMD. Here's another one. MP Materials said last month that the US Defense Department will become its largest shareholder as part of a multibillion dollar deal with its US Government to boost out part of its rare earth magnets. Holy cow. You know, we didn't. We. We're just new at talking about government getting into private company and all of a sudden it's the floodgates are opening. Here's an article from just yesterday the 19th from zero hedge SoftBank buys 2 billion in intel stock Days after the Trump administration considers a 10% stake SoftBank Group is making a surprise a surprise $2 billion investment in the struggling chip maker intel, buying shares at $23 apiece. The move comes just days after the White House began exploring a 10% stake in intel, mirroring the U.S. nippon Nippon Steel deal and MP Materials, where the federal government secured golden shares. Golden shares. Doesn't Trump have a golden shower? A golden bathroom, a golden. You know what I'm saying? So for more than 50 years, intel has been trusted leader in innovation, softbank Mayo Sashi Son wrote in a statement. He added, this strategic investment reflects our belief that the advanced semiconductor manufacturing and supply will further expand in the United States with Intel playing a critical role. So you didn't buy a stake in the company until the government started securing it. Is this not like kind of a good old boy too big to fail play or am I missing something? The last thing I read on this article. Some Wall street analysts suspect political motives given the timing after Trump met with Tan. Oh, okay. Here's another one if you want to look these up. We always try to let you know where to find them. This One is on 13 August. From Reuters. Trump's unusual Nvidia deal raises new corporate and national security risks, lawmakers and experts say. Who are the experts we always talk about? I thought they were me and you, Anthony. Trump still allows Nvidia AMD to export AI chips to China. China, China. Where are we with the tariffs on China? What's going on with that? Oh, they're delayed another 90 days. That's right. I forgot about that. August 11th US President Donald Trump upended decades of US national security policy, creating an entirely new category of corporate risk when he made a deal with Nvidia. I'm going to, I'm going to key. I'll just read one more line from this. It's pretty self explanatory. Historically, the US Government made decisions to control the export of sensitive technologies on national securities grounds. Those decisions were viewed as non negotiable. If a technology was controlled, companies could not buy their way around those controls no matter how lucrative the foregone foreign sales. I guess that, that day's over. Weird. So all of a sudden we are going to get some sort of a cbdc, a central bank digital currency, whether it's Texit or stablecoins. And now we are going to have corporate get under the tent of private business. Anthony, I mean like you said, I mean tell me how that's not going towards socialism. You know the National Guard, you do know that they, they nationalized the police and the National Guard are in the streets of D.C. you know that, right? [00:44:27] Speaker C: Yeah, yeah. [00:44:29] Speaker D: Well now I'm reading that there's other cities lined up to have the same thing happen. Yeah, that's weird. I mean it's, it should raise a couple eyebrows. I don't know. I mean every coin has two sides, even invisible pet rock baby baby type coin. So the people that live in D.C. maybe for some of them it's really good. If you don't feel safe going out to dinner in D.C. and now you do, that's wonderful. But I'm, I don't know, I mean I'm unsure yet about the slippery slope aspect of National Guard roaming all the big cities. I just don't know. I think the answer, everybody needs to move out of these cities. You know, that's my suggestion. We're going to switch over to something Anthony, you and I talked about, you know, before your last vacation, between your last two vacations. But I'm not bitter, don't worry. From the USA Today. On the 7th of August, Trump opens 401ks to private equity. Here's how much to invest. I'm going to give you another article right away because I'm not going to read much of this. We're just going to get into it. Here is from NBC News on the 10th of August and this one is more important to me. Trump paves path for private equity and crypto in retirement accounts here's what it means for your 401k. I would just read a little bit of this and then Anthony, I want your perspective on this. Your 401k options could soon change. President Donald Trump signed an executive order Thursday 7 August to clear the way for the Americans to invest their retirement savings in private equity, cryptocurrency, real estate and other alternative assets. It's a big win for the asset industry, giving financial managers access to some of the 12.2 trillion with a T in Americans 401k and related retirement plans. Private assets can also be more lucrative, and the Trump administration said they can give retirement savers more opportunities. What are your thoughts, Anthony? Is this good or bad? [00:46:47] Speaker C: I think it's dangerous. I don't. I can't think of a single time private equity has been mentioned in an article. And in a positive sense, private equity's job is to make money, right? And. But at what expense? Or just kind of like the stock market's making money. But what is making money do? Making money doesn't push forward a society. It doesn't build widgets, it doesn't create new jobs. It's money for the sake of money. So, like, didn't we talk about Joanne's last year? Maybe it was earlier this year being bought out private equity. Even though all the stores were profitable, they bought out by private equity and then stripped apart and run into bankruptcy, right? [00:47:30] Speaker D: Oh, yeah. [00:47:31] Speaker C: That's how I, I see this happening, is. Yeah, I mean, it could be good for a 401k. You could see your 401ks go up, but in, in the path of destruction, you know, so that's just more money being fed into this system. [00:47:47] Speaker D: It's funny you say that because one of these articles comes clean midway through it and says stocks are risky. Private equity can be riskier. Says here. Private equity, by contrast, often involves companies in distress. That's what we want to give people that are not savvy with retirement investing. Bankruptcies run higher. Private equity is riskier than public equity, Says Silver. I love that name. Silver, EDITOR in CHIEF of Investopedia it's more speculative in nature because you're investing in companies that, that in some cases have no proven track record. Given the risk, Silver suggests an everyday retirement saver should not invest more than 10% of your portfolio in private investments. It's simply too risky. There is some common sense to this. If you tell the people, if there's guardrails, if there's safety nets. We've always told people, moderation, diversification. Are you supposed to do your own company stock? Enron employees, I know you're retirees now. I'm looking at you. United Airlines, I'll name a whole bunch. Mci, you know. No, you're supposed to. [00:48:54] Speaker C: Why are private equities looking to gain money from retail investors? Are institutional investors no longer funding them? Has it gotten too risky for institutional investors to invest their own money? So now they've got to get it from the retail space? They have to get it from mom and pop places because Nobody else wants to fund them. [00:49:14] Speaker D: That sounds tinfoil hattish to me. I love it. Well, but it's super. Yes. I mean, yes. None of this makes sense. When we meet people that have a 401k, Anthony. When people come in and they want a second opinion on their 401k, how to. How to do the asset allocations, a lot of it that comes in, when you go to sign up for it, you get your match. Obviously, that's free money. Grab that. And then you put it in a Target date retirement fund. Why is that? Because you don't do this for a living. You work retail or you work at a company, you don't do this. We do this day in, day out. We know what's global versus international. We know what's large cap versus mid cap versus small cap. We know what bonds are versus stocks. You don't. In general, you don't have a working knowledge enough to do that. So you go into the default fund and then 10 years later, you've never changed it. Just throwing it out there for you. In 2008, how many people in their 401k lost money? Raise your hands. I can't see you, but I can feel you. How many people? In October of 07 through March 9th of 2000, how many people lost money? I'd say some of you, it's like, this is insane. This is going to elevate the risk level on these 401ks dramatically. And I'm hearing the author or the guy Silver from Investopia saying, let's at least make it moderation. I'm not hearing the government saying they're going to do that, you know, but what's the theme of today? The government's getting into every single part of your life, from making sure you're safe on the streets of D.C. to making sure 10 of the chip that gets sold from intel goes into the government's coffers. And where is it going to go? Is it going to go over to Ukraine? You know, the big meeting last week in Alaska? How'd that go? Who knows? There's going to be another one coming up with Putin and what, the little guy together? The little guy, what's his name? Zelensky, shows up at the White House. There's a photo op. There's a string of people in the photo op, everybody wearing a suit and tie. That guy's wearing the casual suit, no tie. I mean, know your audience. I realize, you know, that nowadays casual suits, the in thing, don't show up at the White house in a photo op with 14 people and you're the only one without a tie. Just saying. Oh my gosh, today's going fast. I've still got tons of articles. As Anthony says, I can fill up six hours. Anthony, I guess it's on you because we. I ran the clock out. [00:51:32] Speaker C: All right. I guess I'll end things. [00:51:34] Speaker D: So I do have one more thing. I have one more thing. I've listened to your commuter. I heard your commercials on 10 10am and 9 60. You have one that cracks me up. You say income is the key to successful retirement planning and then you say income, income, income. All I can picture is the Brady Bunch. Marcia, Marcia, Marcia. No, I picture Marcia. But whatever. I'm sorry. Sorry to interrupt. [00:51:59] Speaker C: Right. And so you have income to put into crypto Ponzi schemes. [00:52:04] Speaker D: Yes. [00:52:04] Speaker C: Call it into private equity. [00:52:06] Speaker D: Yes. [00:52:07] Speaker C: Those fail, you have more income coming in. That's the key. It's the key to success. That's why I love those, love those commercials. Anyways, that's it for today's show. If you like what you heard, you want to send us your own letters, things like that. Reach out to us team@AnotherMoney Show.com find us on the web AnotherMoneyShow.com give us a call 623-523-0444. That number again is 623-523-0444 and you can come and sit with us. Remember there's no no cost appointments. It's nothing to lose by getting a second opinion on your financial situation. Until then, we will see you next Saturday at noon right right here on 960 the Patriot. [00:52:50] Speaker B: Thanks for listening to another money show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free no obligation consultation visit anothermoneyshow.com investment advisory services offer through Brookstone Capital Management LLC. BCM. A registered investment advisor. BCM and Rochford Financial are independent of each other. Insurance products and and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. [00:53:28] Speaker D: Hi, I'm J.R. rochford, host of another money show airing Saturdays at noon on 9 60, the Patriot. If you've heard our show, you know it's more news based and how current events could affect your finances versus actually telling you what we do. I'm going to tell you what I've seen time and time again to be the very key to a happy retirement. And that is income. You would think that those without much money in retirement are the only ones worried in retirement. What I consistently see is that those with large sums of assets are also just as worried. That worry worry always comes from the fear of running out. Stop worrying about your assets. Assets come and go. Income is forever. I believe self funding pensions are the key to a happy retirement and I can help you do it. Reach out to us at 623-523-0444. That number again is 623-523-0444, or find us on the web at anothermoneyshow.com. [00:54:36] Speaker C: Have you ever made a dumb financial decision you wish you could take back? Are you worried one wrong move in retirement could wipe away all your years of hard work and savings? What if I told you it doesn't have to be like that? Most companies stopped offering pensions decades ago, but what no one tells you is you can fund pensions yourself. Give yourself the peace of mind of having income you can never outlive in retirement by adding a pension as a part of your retirement plan. Hi, I'm Anthony Crayo, co host of another money show airing on Saturdays at noon on 9 60, the patriot and advisor with Rochford and Associates in Sun City. Reach out to us at 623-523-0444. That number again is 623-523-0444. Let us help you plan your lifetime income and retirement today.