Episode Transcript
[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 Correjo and JR Rochford.
[00:00:42] Speaker C: Here we are, your hosts, Anthony Correo and JR Rochford, taking a break from our day to day as financial advisors with Rochford and Associates, a fully independent fourth generation family office right here in Sun City to bring you information you may not find on those other financial radio shows. We're aware the last thing you need is another money show, but we appreciate you being here today.
[00:01:04] Speaker A: Is that it? Is that all you got? You're. You're seeming kind of mellow and quiet.
[00:01:08] Speaker C: Not argue. And you're gonna start off with this tone with me. Is this what we're doing? We were off to such a good start.
[00:01:14] Speaker A: I, I just suggested that after the last three weeks today we don't bicker. But I mean, you're right, if you.
[00:01:19] Speaker C: Don'T say anything dumb, then we won't have anything to bicker.
[00:01:22] Speaker A: Let the be. Let it begin. Let the bickering commencement.
I am always going to say stuff that you consider dumb. So let's get into it. Shout outs. Let's start with the shout outs. This week was. We had the second Tuesday of the month. We had West Valley men's networking. It was the largest turnout we've ever had. So we've been doing that for what, three and a half, four years? We've been doing that, I think as long as the radio show at least. So that was good if you showed up. Thank you so much. We saw Michael C. From Sun City. I mean we saw a lot of our favorites. We had Jason, the guy I gave a shout out to last week that.
Yeah. And he had the day off, so he was able to make it. Usually he cannot attend. So that was wonderful. It was awesome.
[00:02:01] Speaker C: Thank you again for the M and M's.
[00:02:03] Speaker A: Kevin, bring in gifts every time.
Even if you didn't, we'd still invite you, just so you know. But yeah, no, that was cool. So it was also Veterans Day. Sam, I know your mom served so thank you to her and Sam. So it was kind of, it was a great day. I was in Snowflake for the weekend prior and came down on that day just for West Valley Men's network and happy hour because I look forward to it every month.
Another shout out.
Sam, do you want to say anything about your mom? Do you want to do a shout out to your mom and then you'll have to send her a link to the show and then we'll have one more listener.
[00:02:37] Speaker D: First thing I want to say is I've already got one bingo cross off and that is Michael C. Which I put on the card specifically.
So that's an, that's an original. And yeah, it was Veterans Day.
Definitely shout out to my mom, brother in law, both grandfathers, great uncle, so many others who served over the years. I think my mom and you junior both served in the Air Force around the same time in the mid-80s and early 90s, like Desert Storm time, so.
[00:03:09] Speaker A: Correct. Yeah, yeah.
[00:03:11] Speaker D: You both passed through San Antonio for basic training and then she eventually was stationed in Pasadena and Colorado Springs, so thank you, mom.
[00:03:20] Speaker C: I bet she only had to go through basic training once though.
[00:03:24] Speaker A: Oh, and I say dumb stuff. I have to be the one that brings up what a loser. Jarus, where you called somebody who's wrong 99% of the times and had to repeat basic training twice because he was so smart.
[00:03:35] Speaker C: To be fair, I think you just had to repeat basic training because you pissed them off. Right? Because you were hilarious. I'm pretty sure it was a hilarious story. I love hearing that story.
[00:03:44] Speaker A: Well, and I'll give the condensed version because once you bring it up, people are like, what do you mean you went through basic twice? Did you? Were you Navy and then you went army and. No, what happened was I went to a all boys Catholic military boarding school, which was, I'm going to tell you, I mean we had to train at the rifle range, you know, I mean it was way more military than the active duty military. I served, served. So if I served too. So. And I was cocky. I didn't go in until I was 23. I did the military school, then I went to college for a couple years, wound up working, went in at 23. And I thought I was tougher than the drill instructors. I think they called them TI's. We had technical instructors in the chair force. And so I pushed the envelope. I mean, starting with the first night, I got myself in trouble, the very first night. So long story short, I got in trouble trouble enough times and what they did was they let me get all the way through basic training. So in basic training you actually have a graduation, you have a basic military. I don't know what it stands for, BMT something. And so you graduate from basic training and you go off to your technical school. So I'm ready to graduate with everybody else. And they said, oh, you are going to get a brand new.
They let me get all the way through it and they said you are going to have a different graduating class. And I had to repeat it. So that's a true story. So. And it was good for me because I was at that time I was young, in good shape. So I was in even better shape. You know, I went before I went into the military. I spent a good six, eight months running every night, push ups, sit ups. I mean I really, I figured basic training would be tough and back then it was, you know, they used to be able to hit people. It's not the softer, newer military. So I got ready for it and yeah, so, so went through basic twice. So I've always been smart. I guess that's what that.
Thanks for bringing that up, Anthony.
[00:05:37] Speaker C: Yeah, thank you for sharing your story with the class.
[00:05:39] Speaker A: That makes basic training twice now. I have to go to the show every week. It's like I just don't learn anything. Anyway, back to the shout out. So great to see all our buddies at the, at the happy hour. You know, feel free. If you're a listener, come meet us. It's, it's on 67th Avenue in the West Valley. We'll give you the exact place and time and all that. Actually we've given it to you. It's thrown. I mean it's not, it's not a secret.
So come see us second Tuesday of the month at 4 o'. Clock and another, I want another shout out. This is week three. We have a, we have new listeners listener and they're actually, they're going to become clients. So thank you so much for your business and thank you mostly for trusting us. But yeah, they're, they're listening and one of them listens and one doesn't. So the one that listens apparently made the one that doesn't listen to the clip where we did the shout out last week. So now I'm just kind of sucking up and doing another shout out to you.
So. But anyway, thank you so much for coming in. Thank you for sitting with us. I know we can help you. I mean the people align with us. The number one priority is safety. So if your number one priority Is safety. You know, we say we protect and grow in that order. We're always aware of inflation, taxes. I mean, we understand you need to make money. But you know, we start out with the theory that we'd rather not lose you 10, 20, 30%. You know, I mean, I know if you're insecurities, that's part of the game. But oh my gosh, look at this world. You know, Anthony, you bring up the movie, the what? Boom Bus. Boom.
And it straight out does that is our country, that is our world. We. There's no even keel. We build this huge bubble, then it pops, then we do it again. We, we have had a 16 year run up in these markets. So do not tell me this can go forever.
It's defied all logic. It's defied all gravity. I just learned of something here this week and I haven't been able to dig in enough to really bring it too fully. But if you listen to this show and you look for things that you want to dig into further, write this one down. Because this actually might be the. I keep looking for. The caveat is a government shutdown. Of course not. Get to that in a second too. This is something that's kind of new and it might really become big. You know, we, we make a little bit of fun of or we address blackrock, Blackstone, Vanguard, blackrock, you know, trillion dollar organization.
They took in an investment with a company called Renovo Home Industries. So do an Internet search of BlackRock and Renovo Home Industries. Apparently it was only about $150 million investment, but this company went south and they're in chapter seven. Well, apparently BlackRock oversaw like 13 other companies that put big investments in this company. And it was Blackstone, Oaktree, Apollo Group. So big, big names. And the problem with this, all of our IRAs and 401ks and mutual funds and ETFs and all these securities.
It looks like this might spider into Main street, main portfolios. And if it gets bigger, this could be it. This could be the black swan that we've been waiting for. Black swan from blackrock and Blackstone. So we'll see. But just every day. And I hear Anthony say all the time, I don't listen to him, which is true. I barely even hear it when he says that it's that bad. But Anthony's like, you just don't listen to me. I agree with you. I say the market could go down tomorrow and keep going down for the next two years. And I wouldn't be surprised how you like that, Anthony.
I do. I do.
[00:09:15] Speaker C: That's my favorite answer. Because, like, what with all these articles, they, you know, that's what happens. People read an article and they say the beginning of the year in Q4 or in December, you know, 16th, this is going to happen and this is going to be the pitfall. I don't know, maybe it's that. Maybe it is December 16th, maybe it's next year, maybe it's two years from now. All I'm saying is if it happened today and didn't stop for two years, it wouldn't surprise me.
[00:09:42] Speaker A: And we are in a good position if that did happen to happen, because we believe in protecting and growing in that order. So we believe in hedging our bets. The people that you have securities with, because you are a fiduciary and you have securities for people, you also address their lifetime income needs, their inheritance and legacy needs. We address, you know, generational wealth transfer via, you know, life insurance, for example. We talk about all of that. So you have a good base and foundation for your people. So. And you also are keeping your eye on all of your accounts. We are a small family practice. We are a different animal in the world of Edward Jones and Schwab. I know you sent me a article about Edward Jones getting ready to expand their ranks. They already have like 20,000 something reps. You know, heavy.
[00:10:26] Speaker C: I think they've been doing something before because I was. I wasn't sure if that's new, but they essentially are selling ownership shares to kind of like program to their advisors and vendors and things like that. I. I just, I didn't know they did that. Did you?
[00:10:41] Speaker A: Well, yeah, I mean, it's not a public company, so, yeah, it's actually a family company, but it's not like ours. It's a massive machine. My dad used to make fun of them. I know I've told you this before. He. He used to say they were the fast food of financial because they're in strip malls. They. The office is always, you know, it's basically their model is one representative, you know, one office manager. They are fully independent. They say they're fully independent, but yet when my youngest son's godfather was an Edward Jones rep for a while, I got to know more about their company. For example, in his office, they supplied, they stocked, they had the prospectus and the material for American funds and only American funds. And this is at a time that when I was big into mutual funds, I mean, I had stuff from Fidelity, I had stuff from Franklin Templeton, all these different companies, you know, including American Funds. And he was like, yeah, they kind of push us that way. I'm like, really? You know, that's, that's, yeah, maybe there's spiffs, whatever you call them. I was kind of surprised by how limited the scope is. And you know, I learned back then it was a heavily. The culture is lds, it's a heavy Mormon company. I don't know if that matters, but it's just, it's a different animal. The, the one thing I will say, we're not trying to slam Edward Jones. I mean, I can tell you right now whether it's, you know, a bank like Wells Fargo Financial Advisors, whether it's, you know, a big firm like Edward Jones, whether it's a family practice like Rochford and Associates, conveniently located in the West Valley.
You get a good or bad rep. If you have somebody that cares about you and puts your needs first, that is golden. If you get somebody that is just trying to make a commission, not so good. And during good times, like a 16 year run up in the market, you might not even know how your advisor is. You know, I mean, Anthony, we don't know how you're going to fare during the next 2008. Actually, I believe it'll be a 2000 and 2008 combined. Maybe it starts today. I saw the dows down 400 points. The Teflon Downs, you know, is really down today. So, you know, you're good as bad as you're at. The problem with people that work for big firms, and I've worked for a couple of firms, I mean, I wasn't independent my entire career. The pressure and the quotas, that's what dictates what they do. You can be the most honest advisor on the planet, but if you don't sell anything, and I say the word sell on purpose, not offer, not explain, not if you don't sell for any length of time, you will be gone. The Edward Jones reps will be gone. And I know that for a fact. I knew more about it when I had a friend working there. So anyway, if we get to that article, fine. But it's just they're a huge company and they're on another push to grow bigger. And it's, it's kind of weird. Anyway, let's, let's finish up with this stuff with the, with the market. When I talk about boom, bus boom, I want to say from my seat, my opinion. We are in the biggest bubble in the history of the world. And all around the world, everything is moving. Everything is changing. I just heard this week Cambodia moved their gold to China.
Beijing wants to be the financial center of the world. They don't want it to be New York anymore, they don't want it to be London. And it seems like, well, Cambodia to China, well that's a natural fit. Why are they doing that? Why aren't they keeping their own? That people are picking sides right now. They want to de$ize the U.S. they know that the end of the world reserve currency being the US fiat currency is over. They know that we have 38 trillion in debt. They know that that's just on the books. They know that Social Security, Medicare, Medicaid, they know that we have underfunded liabilities that would topple us. They know that the banks have no money. They know what derivatives are. They know stuff that people just don't. They're not bothered to learn and it's, it's not comfortable. Should I read what normalcy bias means? Anthony? Is that Sam, I know you have normalcy bias on your bingo card. You have to because I try to bring it up as often as I can, mostly just to piss off Anthony, but still you need to know what it is, so. Oh, Sam, Sam shaking his head no, no normalcy bias. You know what? I bet you do have Government shutdown. Let's just, let's get, you know, I'll get back financial in a second but government shutdown, apparently it's gonna be over. It's not over yet today as we record is the lucky 13th of November and the government shut down last night. Jamie Dimon, a lot of the big huge bankers and Wall street players had a big party over at the Trump place. You know, I guess the new ballroom's not finished yet. So they, I don't know, maybe they did in the kitchen, who knows. But anyway, there was a big party. You know, Trump's going to sign something and show people that, you know, with a stroke of the pen he can reopen the government.
It's interesting who was at his little party last night? Apparently, you know, all that's left is he needs to approve it today. And then on the, I guess on the 14th it opens up, you would think Monday, let's have a fresh start on Monday. But with the end near of the government shutdown, I feel foolish. I took the boards off the window, I'm growing my hair back out. I wiped off all the face paint. We had to resuscitate Sandy and the dogs. Jane are scrambling to bring Sandy and the dogs back to Life. So I don't know. And you do know with the government shutdown, first of all, it didn't affect most of us. So, like, we would never have known it happened if we didn't, you know, have any media in our lives.
But the other thing, do you realize that we have to do this again on the 30th of January, 2026, he really less than two months away. We have to do this again.
If it was earlier, they said something about this continuing reg, you know, cr, the continuing resolution. They'd have to do it right around now, middle of November. Well, now it's the end of January, so I don't know. I find it funny. What is that, like six weeks out? You're excited about the next shutdown?
[00:16:21] Speaker C: Can't wait.
[00:16:22] Speaker A: By the way, this is not a political show and we have no political leanings whatsoever. But I can tell you Democrats, what did you get? I mean, you held out for, you know, mostly for health care and you didn't get anything. So I don't know. I mean, there's a lot of Democrats that are very pissed off at the six people that went over to the dark side with the Republicans and voted to reopen the government. So maybe you guys can fight amongst yourselves.
Anyway, let's move on.
Oh, and you know, speaking of the end of the shutdown and not getting anywhere with the health insurance, they're going to have meetings now. Trump said that he's willing to talk to people once they open the government. So we have, you know, I mean, there's a lot of uncertainty. The, at the beginning of next year, which is coming up really quick, they have presumably the aca, the Affordable Care act, the average premium is going to, it's going to rise by 30%.
So at the end of the year. So there's people that are asking what to do, but it's like, well, we don't know yet what's going to happen. So we're not sure. We had a client who wants to lower their income apparently in preparation of this until they turn 65 and getting, you know, get on Medicare. So, and we don't know yet. So this is very unchartered territory.
I would like to get into the world around us. I'd like to just jump into how messed up things are and why don't we start with the banks? I mean, a, you know, it's my very favorite subject, by the way. I got one more shout out. I was remiss. Joe Jaquint and Jason Walker, they had me on their show last Friday, which was the 7th of November. I do have a link to their podcast if anybody wants to hear it. And it was me heavily talking about the banks. So thank you so much for having me on. I actually stayed on their show in Colorado too. So I was actually on their show, the Half Empty Cup.
So if you want to hear it, I'll be glad to send it to you. I was a little bit less nervous. You know, we've been on this show for three and a half years and I am never, ever nervous when we do our show. Going on their show, I feel like I don't know what to say. I get tongue tied. But as it went on, I got completely comfortable and so it's my second appearance on there. I want to ask them if I can keep coming on periodically and I believe it's, it's, it's good for them and good for us. So. And we have to have Joe back on our show. He's always got a lot to say. I'll tell you what, thanks. I'm going to give you a broad view and then I'm going to bring it down to something that actually hit me in the wallet this week. So the broad view is. And this, you'll get all this if you listen to Joe's show and you hear what I said. We are on a fractional reserve system. We are. The government makes the banks keep some money in reserves. So we never duplicate the 1920s, 1930s. They don't want another run on the banks. So the fractional reserve prior to Covid, the government said to the banks, you, you have to keep 10% in reserves. But then in March, on March 16, the government okayed them to keep zero in reserves. Let that sink in. If you've heard us for any length of time, you know, we've got a couple things you need to know. That's one of them. Zero. The banks don't have to keep any reserves. They are completely reliant upon the FDIC in case there's another run of the banks. Well, hear me out on the reserve, they never put it back to 10%.
So fast forward from March of 2020 to November of 2025, they don't have to keep any money. So shame on you government. You know, people that are 38 trillion in debt, shame on you. Anyway, let's get to the FDIC for a second because that is item number two that you must be aware of. You think because you have only, you know, 249,000 in your account or less that you're safe because, you know, yeah, the banks have no money and the world's sketchy and the economy is not what they're telling us. And inflation's not going away. Everything will be fine. So. Right, Anthony. Everything will be fine. So anyway, so the problem is they don't have any money either.
The depositors, us, the people that buy checking, savings, CDs, money markets, all that stuff that gives us massive interest. Right now they have 1.436% coverage. There is trillions of dollars in depositor assets. There is only billions of dollars with a B to cover the trillions. So hang on, if the banks get sketchy, they started to a couple years ago. If you remember the name Silicon Valley Bank. The government is in the process currently of lowering regulations on the banks. Okay, so the FDIC has 1.3% coverage. I'll show you how to find it. I do it all the time. The fractional reserve system has a zero requirement.
Then the government's coming in saying, well, you know, the economy is tough, so banks, you better loan out more money. You don't have to report stuff as much. You can do whatever you want. This is insanity. So the bottom line in the banks, you know, macro picture, make sure you make your way over to Al Gore's Internet and look up bail in two words. B, A, I, L, next word in.
If you've been listening to us, we've sprinkled that term in for years. You need to be familiar because in 2010, after the financial collapse, Anthony, you were in high school when that thing was raging that led to a couple representatives, one named Dodd and one named Flank, they put in the regulations to basically say if we have another correction, if we have another bubble burst, we're not going to be able to do a bailout, which means taxpayer dollars given to AIG and B of A and Chevrolet and whoever they chose were too big to fail. So this time they are going to use our trillions in the banks and say everything's going to be okay.
Ooh, that was a mouthful. So, anyway, banks. Now, let me bring it down to what affects me. First of all, I despise a bank called pnc. But that's not what this is about. That's just a personal thing. And I'm not going to say allegedly because I really do. It's true. I hate them. So. But I had an experience on Monday, this Monday, November 10th, and I didn't tell you about this, Anthony, on purpose because I didn't want to talk about it.
So I get Up. And I went on in the chat box, Sam just put, every time I see a PNC, I think of J.R.
that's pretty cool. So even when I'm dead and gone, which don't get excited, Anthony, it's not going to be for months. So even when I'm dead and gone, you're going to be like, oh, look at J.R.
so I hope you never bank there just to, like, honor my memory. My. Anyway, so Monday, I am going to do a couple of my. Because I'm so technologically savvy, I'm going to do a couple of my bills online. I'm going to transfer money from one bank to where the bills are due. I think a lot of you kids do it all the time. And I go in there and I am overdrawn.
I see a negative. I see a red number in my bank account. Should I say the name of the bank, or does that matter?
I went to my credit union. It was not the case. This was the only bank I know of that this happened with. Man. It happened to me. And I took screenshots and I went into a bank and asked if they were having any trouble in Snowflake, and they were not. So I don't know if I should name the bank or not. But anyway, so I'm overdrawn. I'm like, that's impossible.
I'm not overdrawn. What happened? And again, this was just this.
Sam put next week on another Monday show. Is Jer broke? Well, yeah. I mean, I'm married, so, yes. And the answer is yes. But this is different. I always have a little money, enough to cover my bills. Anyway, so what happened was. Let me read. I screenshotted from their website. Important.
We are aware of an issue causing some automatic deposits and withdrawals to appear as duplicates. Our team is actively working to resolve this. Thank you for your patience. That pops up in the morning. That was still there when I went to bed. I couldn't pay my bills. I had one due the next day. I usually pay them at the last minute because why not? Why don't I keep my money until I have to?
So anyway, this bank, and they say it says here on this thing, I screenshotted, it says some automatic deposits and withdrawals. You know what bank it was? None of my deposits. And I literally, a couple days before, transferred money from one of my accounts with your bank to the one that I pay the bills from so it'd be ready on money to pay the bills. And none of those were duplicated. I did Two transfers into this account. None were duplicated, but the withdrawals that occurred were duplicated, and it put me at a negative balance.
So I just want you to know if you're at all worried about the beautiful aurora borealis, you know, because of solar flares and EMPs, worry more about your bank because they can do anything. So I don't know, or be prepared.
[00:25:24] Speaker C: Not scared, and have some cash at home for.
[00:25:26] Speaker A: Correct. The only problem is the bank that I'm referring to does not have a branch in Snowflake, Arizona.
So you are stuck with a few other national and local banks. So I couldn't do that. But I thought about exactly what you're saying because I had enough cash with me to go into a branch if I needed to, and I couldn't do it.
So, long story short, I've got the proof of this, too. If you reach out to us, I'll tell you the name of the bank if you wish, but. And it's not one of the big three. It's not Wells B of A or Chase, but it's up there. It's probably right after that.
Something else. When I talk about. Oh, man, we gotta get to break time already? This went fast. When we don't bicker, it. It goes very fast, doesn't it? One more thing and then I'll take us fast for you.
[00:26:06] Speaker C: Because you don't stop talking.
[00:26:07] Speaker A: That's right. Well, and I'm not gonna.
[00:26:09] Speaker C: I'm gonna start a fight right before we leave.
[00:26:12] Speaker A: Now, we can fight during the break. Reach out to us, 623-523-0444. I'm sorry to be laughing, but Sam, put on the screen two black swans that appear like they might get ready to fight. Anyway. Reach out to us, 623-523-0444 or email us at team anothermoneyshow.com we would love to meet you. We would love to be a second opinion. We would love to sit down with you. So if we can help, we'll be honored. Thanks for being with us. We'll be right back.
[00:26:42] Speaker B: Well, J.R. and Anthony need a quick breather, so refill that coffee and get ready to level up your wallet. This is another.
[00:26:53] Speaker A: From my.
Hi, I'm J.R. rochford, host of another money show. If you've heard our show, you know it's about current events and how they're going to affect your finances and your future. What I see time and time again is people afraid of outliving their retirement assets. I've also seen the key to A happy retirement and that's good steady income. Folks with good steady income tend to be much happier and believe it or not, healthier. Stop worrying so much about your assets that come and go. With almost 30 years in the financial services industry, I know self funding a pension is the key to a happy retirement. Let us help. Reach out to us at 623-523-0444. That number number again. 623-52-30444. Or find us on the web at anothermoneyshow.com and check us out every Saturday at noon on 9 60. The Patriot.
[00:27:59] Speaker B: Welcome back to another Money Show. To schedule your free no obligation consultation with JR and Anthony, visit anothermoneyshow.com or call 62352.
[00:28:15] Speaker A: Welcome back to another Money Show. Thank you so much for being with us. You know, we greatly appreciate it. We hopefully were helpful to you. Hopefully we're at least, you know, having you be, be awake, be aware, be nimble. We want you prepared, not scared. We want you proactive, not reactive. Hopefully in a little way. If you're listening to us, we're helping with that and we appreciate your help. We're a little tiny fish in a big pond and we, we need to meet people. We need to, we need to keep this whole party going.
So make sure you go to our YouTube channel. We are up to 637 subscribers now. I believe last week was 6:34. So not that I'm micromanaging but good job out there. And we have almost 400,000 views of our videos and shorts. So if you want to check out our shorts, we invite you to do so. YouTube.com another money show.
Moving on, actually finishing up. So this whole thing with the bank, the big picture, I've been shouting for almost 20 years so. And nothing happens fast. I know it's a slow, you know, how did, how did you go broke real slowly and then all of the sudden. So it's, it's, but it's just, it's all messed up at once. Is my problem something else for you? If you're worried at all about glitches at the bank, are you watching what's happening in the world? Cyber attacks, power grid failures, all this stuff could affect everything you do. So yes, Anthony, have some cash, have some food and water and we haven't talked in a while. You know, if, if the poop does hit the fan one day, we're not a fan of gold and silver. We don't want you killed. We don't want you to be A bigger target than you are. We're a, we're a huge proponent of gold and silver for diversification and moderation, for wealth protection. You know, for a store of value, we get all that. And right now, obviously it's skyrocketing. So enjoy. I don't think it's done because the world's not getting any better, you know, I mean, so. But we think that you should have alcohol and tobacco if you want to barter with people. You know, I'm going to start running a home poker game if I, if the casinos close their door, I mean, kind of keep in mind what vicinity I live in because we'll host a game here.
Moving on a little bit. When I, when I talk about the bubble and everything bursting, it's, it's kind of crazy.
There, there's, with the financial markets, when you have the Dow Jones industrial average being 30 companies. I haven't brought that up in a while. You need to research what I'm saying because I think you'll get more on, on board with me. It's easy to manipulate them. So we, we refer to the s and P500 because 500 companies, you're going to have more of a mix. It's harder to manipulate. But the last eight or 10 years, we started out calling it Fang. The stocks that held up 500 companies were Facebook, Apple, Netflix, Google, whatever else one. And now it's the magnificent seven. Like 493 companies are hurting and seven are doing great.
That could be about to change.
What I read this week, this shocked me. This shocked me.
So Nvidia is the golden child. That was Nancy Pelosi's breakout investment. That made her a better investment than Warren Buffett. Just kidding. She's been a better investment investor for years. So Nvidia, the CEO came out, rattled the markets last week. I brought this to you just last week. Rattle the markets by saying China is gonna win the AI race. The US is not. Yes. They have lower regulations, cheaper cost, all that stuff. So this week something new. SoftBank sells its entire stake in Nvidia for $5.83 billion billion with a B.
So this is from. I read this on the Wealth Advisor on the 11th of this month.
I'll just read a little bit to you.
SoftBank said on Tuesday it has sold its entire stake in US chip maker Nvidia for 5.83 billion as the Japanese giant looks to capitalize on its all in bet on ChatGPT maker OpenAI.
So apparently SoftBank still believes in AI and the fact that it's coming, but they're losing faith in Nvidia. That's shocking. The firm said its earnings statement that it sold 32.1 million Nvidia shares in October. It also disclosed that it sold part of its t mobile stake for 7 for, I'm sorry, 9.17 billion. We want to provide a lot of investment opportunities for investors while we can still maintain financial strength, said SoftBank's chief financial officer Yashimitsu Goto, during an investor presentation.
So through those options and tools, we make sure that we are ready for funding in a very safe manner. Safe, okay, he said in comments translated by the company. I wonder if he plays baseball for the Dodgers.
So I got a question for you. If you're really going to use the word safety, are you sure having the kind of concentration you have in stocks, bonds or banks is the way to go? Well, why don't you. Mr. Goto from Softbank, why don't you set up an appointment with Rochford and Associates and sit down with Anthony. We want to show you what real safety is. Anyway, Nvidia shares dipped 2% in pre market trade on Tuesday.
Let's see here. The offloading of Nidvia stake had nothing to do with concerns about AI valuations. Yeah, of course not. No, it never does.
Anything else here I need to get to the Japanese conglomerate stock has slumped in the past week as concerns of an AI bubble sent jitters through global markets. So is AI a bubble? I mean, obviously it's the wave of the future. We know it's coming. Is it a bubble? Of course it is.
[00:34:12] Speaker C: Like the Internet was the wave of the future. But that doesn't mean the stock market evaluations were what they should have been in the 90s.
[00:34:18] Speaker A: Correct? Correct. My dad's favorite example was pet.com they bought a domain name, they had a company name, they didn't have any products and everybody was buying their stock. And I and if I remember correctly, they never did have any product. They closed their doors after bringing in millions and millions of dollars without having any product anyway. So yeah, no, AI is a bubble. I did watch a movie. I'm not a sci fi kind of guy, but I did watch the Matrix, the original 1999 matrix, this past weekend. Thank you to my friend Marilyn who gave me a copy of it. And they bring up AI. I mean all these old movies. Terminator. When you look at all the sci fi movies, they have told us what's coming and we are racing towards it and none of them are good it's like documentary Terminator.
Yes, that one.
What is it? A seven part documentary?
Idiocracy, Sam. Good call. Idiocracy is. That's the real future.
When the smartest man on the planet gets here, you'll know who it is. Yeah, no, it's just insane. What a bubble. But that really kind of shook me because Nvidia seems like the go to. So we'll see. And me personally, if you spend time with me, something I hate to say to you right now. Currently, as a financial advisor, the thing I'm scared of. Stocks, bonds and banks. What do you do as a financial advisor when you really hesitate to recommend money in stocks, bonds and banks? And yes, I understand diversification. Yes, I understand moderation. That's why Anthony and I offer securities. That's why we do certain things. Anthony has his license, I don't know the acronyms. Iar, ria. He's some big wig with securities so he can sit with you and help you.
I have parked my securities license on purpose. We don't need two of us with it. And I, I just don't believe that I would be offering securities. Anyway. I think things cycle and I think after a 16 year run up in the markets, the cycle is gonna be more painful than even the last one of the end of 07 through the beginning of 09. So it's not, you know, it's not my thing. I am gonna ask you to have some food and water. I'm gonna ask you to have some cash. I'm gonna ask you to pay down debt. I'm gonna ask you do you have any goals, do you wanna travel, you know, spend your money? Life is uncertain. We never know what's going to happen next. You know, have you, have you done your grandchild gifting yet? Do it. I mean, do things, you know, there's other options. We're huge on income. Anthony's number one passion is lifetime income. You can make mistakes and you know, next month you're going to get your income again just like when you were working. We're huge on that.
I can tell you we are in a very sweet spot right now for what we focus on if you want lifetime income. And you know something about lifetime income, Anthony, that, that is really resonating with me. Especially as about a month ago we brought up aps.
Aps. These monkeys want more money from us. We're already tapped out. Oh, inflation's down to 2 or 3%. Not you know, counting food or energy, but you know, aps. Good timing. You Want, you want to charge us more next year. And that's not going to stop the AI. It's all intertwined. As long as they keep building these, these plants and factories and chips and all this stuff, the wave of the future is more energy consumption. Texit Coin. Bitcoin. Xrp. Bitcoin. What the hell happened to you guys? You were at 124,000 a couple months ago. Today I looked in, you were at 101. What happened? Bitcoin. And by the way, all, it's a good time to buy 20%. It's only 100,000 a coin. Get your coin now and then when you take it to Walmart, you can give them that coin and they'll give you $99,000 and change.
[00:38:02] Speaker C: So if you were reaching out to try to buy it at its peak, talk to us now. Actually. Oh, it's 98 right now. Wow. Whoa.
[00:38:10] Speaker A: It was under 1 this morning. I just looked in. I just looked in this morning.
[00:38:13] Speaker C: I think that's about what it was when I looked at it before the show even started.
[00:38:17] Speaker A: Huh. Look at that.
[00:38:18] Speaker C: Wow.
[00:38:20] Speaker A: Anyway, so we want you to come in now and I'll tell you two reasons. One, we have to be proactive and not reactive. We have to get to you. We have to have you dollar cost average out. We have to have you if it's appropriate. We have to have you make moves before things happen. I was here in 2008. I remember the psychology of it. We have to work on that now and have a plan at the very least. It's also the volatility is ramping up.
Everything's getting a little bit more sketchy. You know, government shutdowns and Nvidia stock sales and all this stuff. It's getting more sketchy out there. So it's a good time. It's a sign that we might be at the end of this 16 year bull run in the markets. The other thing, we are in the most perfect spot we've been in about 14 years for how safe money can pay you. We have the highest interest rates we've had in almost a decade and a half.
As you know, that window is closing. The government's lowering rates. They said they're going to do it again in December, so I would. We're never pushy salespeople. I will tell you, it's a really good time to sit with us if that's something you're going to do eventually. I wouldn't wait till Your money's down 10 or 20% to make an appointment. Because by then we might, you know, it might be harder for you to get out. You know, we never want to make a mistake. We always would feel bad if we locked in a 20% loss.
And Anthony, you haven't seen that yet, but you might. So in November. I'm sorry, it's November, end of the year. So Santa Claus rally, is that coming up? I don't know. There's always some reason. You know, Macy called people yesterday and it was funny because she didn't. A lot of people that want to see us want to wait till after Thanksgiving. So that's fine. I mean, we'll see you whenever you want. I'll see you Thanksgiving week. I mean, I'm. This is my life, so. But I will tell you what I mean. After Thanksgiving, Christmas will be here. So then you're going to see us after the first of the year. I wouldn't wait if I were you, but that's just me. We need to move on. I want to talk about two things.
Anthony just reminded me one that's very important. I want to do one thing first, Anthony, if that's okay. Sam's saying we still have plenty of time.
So as long as we get to it.
[00:40:22] Speaker C: Because it's been on our to talk about list for the last two weeks. So I want to get to our version of the story before it gets to everybody else, even though it might be a little bit late for that. But we'll get to it.
[00:40:33] Speaker A: Perfect. So let me do this real quick.
Part of, you know, everybody speaking of movies, liked the big show short. Michael Burry, he saw it coming.
He's back out there again. I'll try to condense this. This is something else I read just this week, actually yesterday from the wealth advisor, Big Short investor Michael Burry accuses AI hyperscalers of artificially boosting earnings. Michael Burry, the investor made famous by the big short who recently roiled the market with a tech short bet, is accusing some of America's largest technology companies of using aggressive accounting to pad their profits from the artificial intelligence boom. That's exactly what happened before the housing market. That's exactly what happened before the tech bubble burst. That's exactly what's happening right now. Michael, if you're listening to us, good on you. You're going to be right again. And nobody sees it until after the fact. So on a post Monday on X, the Scion Asset Management founder alleged that the hyperscalers, the major cloud and infrastructure providers, are understating depreciation expenses by that's that's all you know, Boo, boo, boo, boo, boo. All it basically means is smoke and mirrors, shell game. They're puffing up their earnings to make it seem like you better buy this stuff now and it's gonna crash. That's what he thinks. And my opinion is he is smarter than me, so I'm going to ride with him.
Jumping forward. CNBC has reached out to Oracle and Meta for comments. Nvidia declined to comment. Nobody's addressing what he's saying, so of course they're not. What are they going to come out and say? You're right, Mike. It's all. It's all full of crap.
One last thing here. Bury, who famously bet against subprime mortgages before the 2008 financial crisis, has warned this year that that AI enthusiasm resembles the late 90s tech bubble. Burry last week revealed seemingly fresh wagers against AI favorites Nvidia and Palantir Technologies. He disclosed and put options with a notional value of about 187 million against Nvidia and 912 million against Palantir as of September 30, according to regulatory firings. So Michael Burry is on his way out of this. So is SoftBank. That is a bad sign. All right, Anthony, let's do it. Actually, one more thing. Promised. Promise, one more thing. Because I know once we get into this and I let you talk, you'll never give me the microphone back. And that scares me. I love to.
[00:43:10] Speaker C: I want you to talk about it.
[00:43:12] Speaker A: I have nothing to say about it. So one more thing.
[00:43:15] Speaker C: I'm supporting the US Economy right now.
[00:43:18] Speaker A: Is that really what you're doing? While we're doing a radio show, you're actually out on shopping.
So here's something for you, Anthony. You, how I see it. Like, the older I get, the more Archie Bunker I get, the more I'm just get off my lawn and I'm like, upset. And I keep saying every week that I worry about you guys. I don't worry about me. You know, the, the. You. You'll be here 30, 40 years after me. You're going to see the aftermath of our political division, the aftermath of our changes to Medicare, Medicaid, Social Security, health care, borders, everything. You're going to live with it. I'm not.
If I make it alive through the rest of the day, I'm still. I'm borrowed time. But you don't get upset about anything. You're too mellow. I need you to get more passionate. And I'm not sure what the trigger is for you, but this one hopefully does it. I know you've heard about this, it's growing legs in a hurry. Here's something from realtor. Don't forget you can't say realtor, you have to say realtor.com this was on the 10th of November and believe me, I found about 20 articles. I just this you only want I put aside. Trump proposes 50 year mortgages, potential benefits and drawbacks for home buyers it's going to be huge. The 50 year mortgage is going to be huge, so your grandkids are going to need to go through sign on your mortgage. I'll just read a little bit of this and then Anthony, I hope this bothers you. I know you'll find a way to spin it positively. President Trump has proposed creating 50 year mortgages to solve the housing affordability crisis, an idea that has provoked strong debate about the pros and cons of longer term loans for home buyers. Trump floated the idea over the weekend on his Truth Social site, where he posted an image of himself touting as the creator of the 50 year mortgage. He's not the creator for it for years, actually. Randy Miller, one of our friends, told me about how in the Muslim Brotherhood world they have banks that only they can go to that have offered 50 year mortgages for decades. So this is not a new concept.
The image also showed former President Franklin Roosevelt, who oversaw the initial creation of the fixed rate mortgage during Flip the Page junior The Great Depression.
Federal Housing Finance Agency Director Bill Pulte Is that any relation to Pulte Homes? The nation's top mortgage regulator seemed to confirm the plans in a post on X writing thanks to President Trump, we are indeed working on the 50 year mortgage, a complete game changer for home buyers. A 50 year mortgage would offer lower monthly payments compared to a standard 30 year loan, but total interest paid would be much higher over the lifetime of the loan and homeowners would gain equity at a slower pace. No kidding. Those trade offs have sharply divided reactions to the plan, with critics calling it a bad deal for home buyers that would benefit only lenders and drive home prices higher, and supporters arguing it would give home buyers more financing options and flexibility. I just read a hair more.
The drawbacks are that the 50 year mortgage results in almost double the interest payments of a 30 year mortgage and longer path to meaningful home equity. That seems logical.
50 year mortgages could drive home prices higher, wiping out any potential savings on monthly payments.
It would take almost 40 years to pay off half of the balance, meaning most borrowers who would not begin building meaningful equity until the final decade. We just told you last week the average first time homebuyer and I was in their 40s, it was in their 30s when I was a new home buyer in my 20s. It was in your 20s.
I'm only 61, Anthony. In my lifetime I've seen it go from 20s to 30s to 40s. And I don't think it's going to get better. And the solution is to be to have you in a mortgage forever. What's the difference between a 50 year mortgage and a 15 year car note? They're working on the 15 year car loans now too. By the way. Look at the auto industry. What's the difference between Klaus Schwab saying you own nothing like it. In a 15 year mortgage you're 40, you get a 50 year mortgage, you're 90 when the home's paid off. Yes, I know. You could pay extra payments, you could, you could refinance, you could sell it, you could. Yeah, I know. I don't know. Anthony, come on, please tell me for your generation this is a bad idea. Please.
[00:47:48] Speaker C: So here is. No, no, no, because I, I get it. It's, it's gonna make things more affordable in a very, very, very short, short sighted way. Because the longer you make it, the easier it is to access and to make those payments. It's going to drive all the prices up which is going to make things significantly worse until you have to have a 60, a 70, a hundred year loan to be able to actually afford anything. What it reminds me of is in 2020 realtors telling us that your interest rate is 2% instead of being able to buy a $400,000 home in normal times, you can buy a $70,000 home now because interest rates are so low. It's the same payment. It's the same payment. It's not the same payment because you don't have to pay interest, you do have to pay principal. So I don't want a 2% loan on an overpriced house. Give me a high interest, a high interest loan on an affordable home. Because you can pay off the home sooner, you can build equity quicker, but you're not going to do that with low interest rates and incredibly long loan. So for there to be a 50, I, you know, I can see some of the positives in the very, very near future, but I think overall it's not good. I, I, yeah, I, I don't think it's good.
[00:49:20] Speaker A: Wow. All right, well, I've tried to find one that well, and you know what? I agree with you. One very last thing from that article.
Total interest payments over the life of the 50 year loan would amount to 86. I'm sorry, 816,396. Compared to the 438,000 on the 30 year loan, a difference of 378,000. That amounts to 86% more interest in the life of the loan. So what? I mean, I don't know. I don't see any other than short term gratification. And you know what? It's coming because we're broke. They're lying to us about the non existent inflation, then transitory inflation, then it's manageable and then the target's 3% now is 2%. It's all, it's broken. So it's coming.
All right, we have to get to what Anthony wants to talk about. And you know, I'm not gonna have time for this, so I'll just tell you something that keeps popping up more and more. I don't know if you're seeing it, Anthony. They're watching the companies and they're watching the banks and they're watching like how overnight lending. You know, we told you last week they had a big infusion of cash on Halloween night.
There's a term I was not familiar with and I guess I should have been secured Overnight financing rate, the SOFR, setting the variable interest rate standard. So 15 year car note, you know, 50 year mortgage, all the stuff that I'm seeing this week, I keep seeing the word sofr. So I won't dig into it because I want to get to the article you want me to address. But, but if you get a chance, look up secured overnight financing rate. You know, the more I read, the more I'm just like, oh, it's just more, it's more of a shelter.
[00:51:02] Speaker C: We'll find times where that's going to tie in more to what we're dealing with. Just like the repo market and things like that. But anyways, Kyle Busch, NASCAR American hero. So you might see his name in the news right now because he is suing Pacific Life Insurance. Right? Pacific Life, yes. Guardian Life. Or is it just Pacific Life? Anyways, so we've talked about this on the show, especially with life insurance.
People try to use life insurance to do things outside of a death benefit, outside of making sure your loved ones will have some money if you pass.
That's exactly what happened to Kyle Busch. Someone sold him on an indexed universal life policy and told him it would be his tax Free retirement. And it is not panning out that way for him. So he is having a massive lawsuit against the agent, against the insurance company themselves.
Why I bring this up is because we represent the company. We've got a few policies with them, not a ton, but we do some mygas and things like that. But it really tarnishes how good iuls can be and how good annuities you write the bad a word can be when this kind of stuff happens.
Agents need to stop using these as insane tools for things that they're not necessarily meant to be doing. Like be your own bank, right? We talk about be your own bank all the time. I've never seen be your own bank work. It's a good sales practice. It's good to get business. I've never seen it actually work for clients. Not to say that it can't. I'm saying I haven't seen it.
Same concept here. You're trying to do too much with these products.
Use them for what they're meant for. So I'm interesting to see how this case goes. I would also love to see the numbers because how do you lose 8 million in an IUL is what he's claiming.
[00:53:01] Speaker A: Let me read one line to represent what you just said. According to the filing, the couple has paid more than 10 points million into premiums and are claiming losses upwards of 8.85 million. That makes no sense. Somebody had to either steal $10 million that represented Pacific Life. Something doesn't add up here. The market's been on a 16 year run. If this is an index universal life, there's nothing they could have positioned the money within it that would have done that kind of damage.
You don't put in 10, by the way. Isn't that nice that they have $10 million just for their life insurance? And some of us, well, it's supposed.
[00:53:36] Speaker C: To be their retirement. Instead of probably using fixed index annuities for pension plans like they should have that tax free option.
[00:53:44] Speaker A: So Kyle, if you're listening, reach out to us. I mean, go ahead and sue them. Get your money back. We'll show you how to do it the right way.
[00:53:51] Speaker C: Yeah, we'll take that money and we'll help you reinvest it. We'll use a different insurance company, but we'll, we'll get to what you actually wanted to be doing. But yeah, so I mean it tarnishes just like. Who's that? You know that Fisher Investments guy who talks bad about annuities, but he's.
[00:54:07] Speaker A: And he's still a listener, I'm sure.
[00:54:09] Speaker C: Yeah, I'm sure. So it's like there's good ways to use a lot of these products and then there are bad ways and the bad ways always seem to get the news. So anyways, that's it for today's show. If you like what you heard, you have questions on any of the topics today, or you want to sit down with us to review your personal financial situation, you can reach us at teamothermoneyshow.com find us on the web. Anothermoneyshow.com give us a call 623-523-0444. That number again is 623-523-0444. Remember, there's no minimums, no cost for appointments. Nothing to lose by getting a second opinion on your financial situation. We'll see you again next Saturday at noon right here at 9:60, the patriot.
[00:54:52] Speaker B: Thanks for listening to another money show 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 services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Investors investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.
At Rochford and Associates, we know you've worked hard to earn your money and you've worked even harder to save it. When it comes to wealth management and Planning for retirement, J.R. rochford and his team of specialists have been helping individuals, families and business owners find financial freedom at the their veteran owned firm for more than 25 years. Give us a call now at 623-523-0444. That's 623-523-0444.
