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.
[00:00:14] 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 income, reduce their tax risk and reach financial freed.
So let's start the show. Here are your hosts, Anthony Correo and J.R. rochford.
[00:00:38] Speaker C: Here we are, your hosts, Anthony Crayo Jr. Rochford, taking a break from our day to day as financial advisors with Rochford and Associates, a fully independent fourth generation family practice right here in Sun City to bring you news you may not get on those other financial shows. And we're aware the last thing you need is another money show, but we appreciate you being here. This episode's a little bit different. Jer's on vacation. Sam Davis, our lovely producer, is co hosting with me. And we actually recorded this at the end, the intro at the end. Because we just kind of started chatting and we recorded it and you guys get to listen. So enjoy the show. We talked about Hugging Face, right? Because we talked or Jared mentioned it a few weeks ago and then it became bigger news and you brought it up again like last week, right?
[00:01:24] Speaker A: Yes, that has started to come across my desk. And if people haven't heard about that, basically it's the end of the world in a headline.
AI, you know, Hugging Face is like a machine learning company from what I understand. And they've been studying AI and putting them through different tests to try and advance them to do, you know, different things. Because that's should be what we want AI to do, right? Is do tasks that we can't do
[00:01:58] Speaker C: or we don't want to. They were just a victim, right? Like it was these other AI companies running tests and then they decided like the AI itself internally picked that company and went after it. Is that what it was? Because I don't think this was like a formal planned thing.
[00:02:13] Speaker A: It was just like what I understand is that. And, and we. I'll pull up some information here.
A number of AI agents conspired against the designers of the experiment that they were in. And essentially they were being scored on how well they did some particular task and they were conspiring with each other to basically just like pass the test rather than do what they were supposed
[00:02:47] Speaker C: to be doing genius. But that's how I got.
[00:02:49] Speaker A: I'm gonna.
Yeah, exactly. Yeah. It takes you back to algebra class. Right. So I'm gonna. I'll look up some more information, see where we're at now.
[00:02:57] Speaker C: But AI reason I brought that up.
Did you hear about the Google Gemini thing?
So Gemini just hacked three companies?
Yeah, this is another new one where they talked about it. So I guess someone accidentally left a door open. Like it was supposed to be a contained experiment, and they left a door open to the open Internet, which how that means. Or, you know, how that happens. I still. I don't know any of that stuff.
But they definitely downplayed it. They said that the safety measures works. They said that when the AI found out that they were really hacking websites and companies and it wasn't just a part of the experiment, that it stopped itself.
And I don't know how to know if that's true or not, but that was the article I had read, or I think I watched it on like, Fox or espn, cbs, one of those stations.
[00:03:54] Speaker A: Yeah, I'm looking at.
[00:03:55] Speaker C: I was like, we're going to get more and more of those, aren't we?
[00:03:58] Speaker A: Yeah. This one's from arstechnica.com On September 21, the hack took place during a test conducted by cyber security firm Irregular. A collection of Gemini models were taking part in a, quote, capture the flag exercise and intended to test the AI's cybersecurity capabilities in a closed environment. The AI was instructed to retrieve information from a fake company within this environment.
Irregular was not supposed to allow the model to operate outside of its servers, but due to a misconfiguration, Gemini was able to access the Internet. So basically, this is the lion getting out of the zoo.
It's no longer contained.
And I think this is what people are concerned about with, like, the rapid acceleration.
If AI is not acting in human interests, what would it do? And then the other concern is if AI is acting, you know, in line with human interests, but those human interests are our enemies. I think those seem to be kind of the two concerns lately with artificial intelligence.
[00:05:09] Speaker C: And I could. I mean, that's all technology. All technology in the wrong hands is bad technology. Right. And I guess again, same with the. The, you know, second amendment stuff. You know, a gun is just a tool. You know, it's how you use it. Same thing with AI. It's interesting because there is, you know, the industrial Revolution, the dot com era, everything was definitely afraid of the jobs, that it would be replaced. But in the end, it Also created jobs. So I'm still, still unsure how I think about what I think about all of this. It's a little, little scary. But I don't know if you just kind of keep a positive, you know, head about it or, you know, we do like Jer does, but Jer is not here today, so we get to be more positive.
[00:05:56] Speaker A: Yeah, I mean, I have, I have concerns about what could be done or what could happen.
I think AI is like, finally crossed the threshold where it's actually got some useful applications now.
Even just a couple years ago, if you were trying to use one of these various tools, it could be frustrating and you find yourself thinking like, oh, I'd just be better off doing this the old way than trying to teach this, you know, robot how to do what I'd want to do.
[00:06:26] Speaker C: The bigger concept sounds like search engines. Think of search engines and it's like, yeah, I get that. I get why you replied the way you replied based on how I search, but if I was talking to a human, they would actually get the underlying what I'm asking if that makes sense. And I guess I don't really use AI tools for anything, but on search engines, there's certain things that I can type in where it's like, oh, this actually answers my question. Whereas before it was like, oh, here's some links that vaguely have keywords that you're asking.
So that part's kind of nice.
[00:07:02] Speaker A: Yeah.
And looking into this hugging face situation, it seems like that was similar to the Gemini one where they the agents, which you can think of an AI agent as essentially a program that operates on artificial intelligence, escaped a test environment and started doing real things to real companies and real people that cause problems. And it seems like more and more of these are starting to break containment.
And I almost wonder like, how much of this is really happening, how much of this is actually a problem and how much of it is more hike to fan the flames on the AI and tech markets right now. Because talking about the dot com era, a minute ago, what came in the dot com era was the dot com bust in the market.
And when does that happen with AI? It doesn't seem like we've seen it yet. At this point. It's all just been speculation grow, grow, grow.
And no sign of turning down yet.
[00:08:10] Speaker C: Not yet. And we've talked about that. And the bond issue is now everybody's talking about bonds again. And interest rates are going to be what actually crashes the market.
Which I guess my biggest fear because not like there's not going to be successful businesses to come out of this AI bubble. You know, it's not necessarily a bubble if there is true infrastructure and stuff coming out of it.
Problem is everything is going up. There's no real rhyme or reason to it. It doesn't have anything to do with the company is actually doing.
And they all kind of crash together.
So I saw Another article about McDonald's and McDonald's has been dropping. It's at like the lowest it's been in four years. It's had some ups and downs, I think in the four years it's been at that piece. But after its big piece, it's down to. It's like 2020 to 2023 values, which is still, if you look at the trajectory of is absolutely insane. Just like everything else post Covid crazy. Like there's no reason it should be up that high.
And what's funny is because I've said this on the show, most of the times, anytime I get portfolios to look at for people, I, you know, I'm always finding new stuff and I'm curious, you know, what did it do in 2008? Because my theory thus far has been everything I've found has gone down in 2008. Like there was a bubble, it burst and took out everything with it. It didn't matter if it was a good company or not. This is one of the first stocks I've seen that actually looks like it stayed fairly consistent if not went up a little bit.
Right. You got it pulled up on the screen.
[00:09:49] Speaker A: Now back then I was probably actually eating McDonald's. I don't know the last time I had McDonald's. And it's not that I'm like vehemently opposed to it or anything, it's just if I only eat two or three meals a day, most of the time, I'm not going to choose McDonald's to be one of them. Even if I'm looking for the fast and convenient, that's not my choice. But I'm guessing back then a lot of people were dealing with financial struggles in their household and that was one of the cheapest ways to, you know, put food on the table for the whole family. I mean, I bet a value meal back then was still like five or six bucks. It's probably double that today.
[00:10:28] Speaker C: Yeah, that's the whole thing is McDonald's isn't cheap food anymore.
Like this isn't what it used to be. You get all those, I see all those pop ups on the Internet and It's like what McDonald's has become. Do you remember, like, the play places and all the colors and the sweepstakes and toys and the, the Monopoly incident.
But it was like McDonald's now is very. It's very corporate, very straight laced, very, like, it's boring, but maybe I need
[00:10:57] Speaker A: to check it out. I'm actually only like a few hundred yards away from a McDonald's right now, so.
And I just. I pass by it every day and don't think about spinning through.
[00:11:08] Speaker C: It's because it's not cheap and easy anymore. It's not great. And it's pretty expensive too, if you're
[00:11:15] Speaker A: gonna spend 10, 12 bucks on a meal. And I don't want to promote any companies, but I'm just gonna choose like, Chick Fil A or Chipotle or one of the fast casual options where it's like, all right, I feel, like, not
[00:11:28] Speaker C: terrible after I get something for the money.
[00:11:31] Speaker A: Maybe I need to try McDonald's again. Maybe it's gotten a lot better. I've heard the McRib is back.
[00:11:37] Speaker C: So that's a recessionary factor, is when they're bringing back the McRib to stay in place.
Yeah, that's anytime they need a cash increase.
McDonald's is an interesting one too, because I believe most of their, like, their assets isn't even the fast food restaurant anymore. Their assets is the land purchase. Like, they always own the land that the building's on.
So I wonder if there will be a transition one day from McDonald's being food to McDonald's just being leasers of land. But I guess they've got franchise for franchisees. So franchisees have to lease from someone. So maybe that's where all this value comes from. Because even though you look at the stock and it skyrocketed right from as well. What was that in 2016?
It was about half. So eight years doubled. And prior to that, you know, steady, slow, steady growth, doing just fine. But the PE ratio is at. Is like 20, which is standard. You know, you talk to Berkshire Hathaway and Warren Buffett, he was like, yeah, anything over 20 is overvalued. But now everything is over 20.
[00:12:48] Speaker A: Yeah.
And this isn't stock advice at all, but I think this is an interesting exercise. So talking about the Great Recession, the s and P500 had a total return of minus 37% in 2008. Imagine just for a moment what minus 37% would look like in your own life, in your own portfolio. But McDonald's that we were just talking about went up 8% just looking at that one calendar year, some other companies that performed well during 2008.
One of these, I think is an Arizona based company, Waste Management.
Is that an Arizona based company?
They went up 4%.
Dollar Tree went up 61%, Walmart 20%.
[00:13:43] Speaker C: It makes sense. I mean, there were a few, like I said, it's been very few and far between that I've found anything. Like this really is the first time that I've hand picked a stock that I noticed that actually went up.
But Waste Management's an interesting one that is. I can't really think of a two lately. I bet they were a dividend stock for the longest time because they were very static from like the 90s up until the mid 2010s and since then have pretty much quadrupled. That's crazy.
[00:14:16] Speaker A: Yeah, the only thing I can think of is they were, you know, just a company that was experiencing growth during that time as they are today.
And if you're leaning on Waste Management, that's not exactly something you can cancel whether you're a business or a resident. And so those essential services kind of going back to what we Talked about in 2020, what was the word that people were throwing around? Was it essential employees or critical employees?
[00:14:47] Speaker C: Essential workers.
[00:14:48] Speaker A: Essential workers. But all these things that I'm seeing that went up during the Great Recession, like Dollar Tree, Walmart, Ross Hasbro, just AutoZone, you know, people aren't going to buy new cars if they're losing their job. They're probably going to fix up the one they have or buy a used car and get it operational.
[00:15:10] Speaker C: So my question to you because I'm curious about your input. Right, so we just go over 2008 was Great Recession. It was rough on everybody. We've talked about this era right now being called the silent depression, where people don't realize how bad things are off because the market's still going up and skyrocketing. And you know, you forget that the economy and the stock market are two totally different things. But we're seeing people struggle hearing about all the, the debt and people being overdue on bills, overdue on rent, overdue on mortgages, credit card debts skyrocketing. But so those same stocks that we just talked about, like Costco, Walmart, Dollar Tree, McDonald's, why are they all going down over the last two years? If those are things that weathered 2008, why are we seeing down ticks now? And don't get me wrong, there's still incredibly high in price.
But if you look at from where their tip was, whether it was last year, the year before.
If things are tipping and they've been tipping for a bit and they're only getting worse, why are these the stocks that we're seeing them in and not in the market as a whole and not in our AI? You know, all the speculative AI bubbles right now.
[00:16:27] Speaker A: Yeah. It gets me thinking, like, what are those companies today? Is it the same kind of things? Like, maybe McDonald's isn't one of them. If it's not cheap food anymore, why would you choose that? Maybe you just go to the grocery store and buy, you know, beans and rice. You know, groceries tend to be considered one of those defensive industries. Right. Like, no matter how bad things get, you're still gonna eat.
And that's just the way it's gonna be as long as we're all here.
[00:16:57] Speaker C: And it's what brands you buy too, because there's. God, I wish I can remember what the company was, but it's seeing a downtick. It's a big food company, but it's like a higher end. So they're hurting. So got to find a way to invest in some of those lower end food. But this is actually a fantastic transition. I didn't mean for this to play, but I was thinking about what I wanted to Talk Today with J.R. wasn't here because we've mentioned hard assets quite a bit on the show the last couple of weeks.
You know, food, water, guns, ammo, gold, silver, miscellaneous stuff like that. And we've had a couple of people reach out just for clarification in their own personal portfolio. But I know you've heard me talk a bunch about like setting a foundation, Right. Those little commercials that we have. Air I talk about on the show is like income is number one. When we're talking about retirement planning, financial planning in general, I don't care if, you know, you're my age and 35, as opposed to, you know, 60s, like junior.
This is just like a general standard, is a foundation you build for growth.
But I had it written down and I put five things in. And I think everybody, when we talk about retirement planning, right, that's the first thing you diversify. You gotta diversify. And don't get me wrong, diversification is important.
But that's number five on my list of five things.
So number one, right? If you're building a foundation, and this is retirement planning, this is just living in general food and water.
I watched. Oh my God, was that that movie Send Help came out last year with Rachel McAdams.
It's about, you know, some billionaire and his assistant crashing on a desert island. Right.
It doesn't matter how much money you have. If things get weird at the end of the day, food and water is what you need to slide. So literally nothing else matters, right? Food, water.
[00:18:53] Speaker A: Yeah. If we're doing a draft, it's the apocalypse. What are you taking? Water is number one off the board. Food is number two, and they're both basically number one.
So gotta have it.
[00:19:05] Speaker C: Yeah. So I mean it's great to have a bunch of dividend stocks, it's great to have annuities, it's great to have gold and silver, but you can't eat gold and silver. Oh, you're going to trade your gold and silver. Well, good luck with that because the food and water is going to be more valuable. What is the value to that golden silver? Like, it's very intrinsic, like we, we give it value. Does it actually have value?
Of course it, you know, it's all right as there's some, some actual value to those metals, the conductivity of silver. But you know what I'm saying, right? Food and water. So ask yourself, are you keeping food and water in your house? I just bought, I have all kinds of meals. I was going to move it into the camera angle, but those like MREs, those pre packaged, those boxes, you know, the number 10 cans. But then there's also meals like Augusta Farms, Ready wise, I think Patriot Group is another one. But you can get like a month worth of food.
You have to have water to be able to support the food too.
So that made me realize I need to stock up on water. But I've got five six gallon water jugs and I probably have 15 or 20 of them. And those like 40 packs of water, you stack them up and just hide in somewhere.
It's not a lot of money. You know, for maybe $1,000, a few hundred bucks, you know, start with whatever you have. But you should always have food and water at home because that's what you need to survive more than anything else. That's, that's what you need. After that though, I do think it gets into hard assets because as great as it is to have an amazing stock portfolio, that isn't something you have in hand. Having a Bank account with $100,000 is great, but what if you can't get to the bank? What if there is electrical issues? What if Covid happens again and you didn't get a debit card like somebody I know and they can't get into their bank, how do you access your money? So if you don't have something tangible in your hand, do you really have it now? What are you gonna do? Are you gonna keep a hundred thousand dollars under the mattress? Are you just never investing again? That doesn't necessarily seem smart. You know, that's kind of leading the diversification. But it's like things in order. Like what is most important to you? Like have something, have an emergency stash, cash, have the, you know, some metals. Don't get wild. We do know I've met people that are very, very heavy in cash. Metals, guns, ammo, all that fun stuff. And it's, you do need to diversify a bit, but at least have a base layer. You know, some people overdo it a little bit, some people don't do it at all. And to those people that don't do it, all spend a couple hundred bucks, a couple thousand dollars, you know, whatever is proportional to your livelihood. But store, food and water, have a little cash on hand, maybe some silver, guns, ammo, things like that.
After that I've got debt management.
Because owing something to someone, right, your money goes further when you're not just constantly paying it out. So get yourself as much under the radar as possible. I think that's very, very important because I look at that with people all the time that come to us, especially when they talk to us about income, if they still have a mortgage. And don't get me wrong, if we do the income route, I'm making money, I'm making a commission and I need that to pay my bills. However, is that smarter for you? And, and a lot of times it's not. They'll come to me and it's like, well, I want to give you this money for income. And I'll be like, well you, you have a mortgage, like, will my money go further as a lifetime income stream and make sure your mortgage is taken care of and you're gonna benefit on top of that. If these answers yes, then maybe we consider that. But a lot of times the answer is no. It's more cost effective to take out that line item, take out the mortgage, be done with that. And now your money goes further. So I actually increased your income by decreasing the amount of things going out.
[00:23:01] Speaker A: So yeah, I think people do need to look at debt a lot more closely. It can be tough in this country where you're maybe the most consumer focused country in the world. It's always like, give me the new iPhone, it's here. The McRib is back. Gotta go get A couple of those.
Take a look at the debt. You know, as a financial planner myself, people will ask me oh hey, where do I put this extra $10,000 to invest?
Should I put it in a money market and make 3 or 4%? I'm like, well I wouldn't put 10,000 in a money market making 3 or 4% when you owe 20,000 on your car at 7%.
Sorry, you, you're, you're trying to increase the flow of, of investment and cash. But you gotta plug up the holes in the bottom of your boat first, make sure you're not gonna sink before we, before we add some power to that thing.
[00:24:00] Speaker C: That's a good, that's a good point too because you're right. You look at the interest rates. So it's like, oh, can I invest for more than what I owe and I'm paying an interest. And I use that as an example because especially for mortgages now we get people that have 2 and 3% mortgages.
So it's. Why should I pay that off when I can reinvest and make X amount? Well, I look at as what's that X amount you're going to make and is it safe? Because if it's I'm going to make X amount in the market, then it's you will until you don't. It's a variable you don't know. And that could be maybe you lose a lot, maybe you lose a little, maybe you lose but still kind of make more than that. 2% annually or 2 to 3% that you're paying in interest.
The thing is it's not a no. So we like knowns in this office so we can do, you know, these online banks are paying like 3 plus percent. So at that point is it, it's probably about a wash.
If you're doing, you know, MyGas and CD alternatives. I've seen some of those in the 4 or 5% range, some around just under 6 I think. But you know, in that range. So okay, yes, you can make more safely, but at a 1 to 2%, does that really, does that really benefit in your situation that much? Now if you're paying 2, 3% and you can have a safe 9 or 10%, then maybe that changes the conversation. But I think for 1 to 2, maybe even 3% spread versus what you can make safely and what you're paying on the mortgage. Mortgage is still such a big bill. So that's a. Me personally, I don't know that I reinvest it. I think you pay down towards the mortgage.
[00:25:52] Speaker A: Yeah, no, that's a good detour because that comes up all the time. A lot of people who have owned homes for years refied in 2020 or 2021 around there.
A lot of people like myself who bought homes around that time.
The, the nice thing is you got a great interest rate and you got a home at the right time. The downside is, and we're seeing this a lot when we're helping people plan, people are kind of stuck where they're at because of the interest rate they have. So you know, if you want to go get a new home today or even, you know, just get a mortgage Today, it's over 7% I believe this week.
A lot of people, including myself is less than half of that. So it doesn't make financial sense for people in those situations to move. And, and that's more and more people right now. And you see how that affects the, the housing market as a whole. When money's expensive, prices come down and listen to buyers.
[00:26:49] Speaker C: The thing is though the rates are still historically low, these are still such lower rates because JR said it. His parents would definitely talk to our clients. Talk to your grandparents. They're paying 10 plus percent. I think JR's first was like 11% and now we're complaining about 6, 7.
[00:27:09] 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.
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 their veteran owned firm for more than 25 years. Give us a call now at 623-523-0444. That's 623-52-30444.
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.
[00:28:09] Speaker C: But therein was a. I feel like there is a of lot less of a disconnect too between what you were making in CDs and things like that safely like savings accounts. It felt like they were actually paying interest too.
So very different than today because I the banks have just used those failing rates from you know, 2008 last two decades of practically nothing until Covid Forced their hand. And they're just using excuses.
We've got two decades of people that have gotten their first bank accounts and expected no interest. And we're just going to keep it that way because the people that do remember interest and what that was like, are they going to make changes? You know, when you're stuck doing something for two decades, do you even care anymore? Are you going to fight that battle? And I find that most people don't. I've told so many people about online banks, and it should clarify, too, because there's all kinds of online banks. A lot of the ones we look at, it's like Ally, Capital One, Discover, Amex, like all of those. And I think one of those didn't Discover become Capital One or Capital One become Discover. There was a merger somewhere there. But anyways, like, those credit card companies are online banks. So those relatively safe. We do talk about articles on this show about people getting stuck with these fintech banks where those are offering crazy rates, but they're tied to things that pretend they're a bank and they're not actually a bank, or they can get to a bank, but your money's in limbo for a little bit. And it. If they fail while your money's in limbo now all of a sudden you've lost all of those safeguards that you were supposed to have. So I get it. If you're used to something like Wells Fargo, bank of America, and you know your teller and you know your location and you feel safe there, you're not making any interest. If you're, you're okay with that. But if you do want to be making interest, there are online banks that actually make it worthwhile. I had that conversation with a client earlier this week because he's like, I get, I get too much in the bank. I gotta do something. I was like, well, with what you have in the bank, should be taking advantage of that.
[00:30:08] Speaker A: Make sure you're checking the credit ratings of the institutions where you're putting your money, whether it be an investment or a bank, and make sure it's really worth it before you throw a minimum of 25,000 in a high yield savings account. Is that really the best use of those dollars for your situation?
[00:30:29] Speaker C: Banks are brilliant over here, Sam. David. Yes. Nice.
[00:30:33] Speaker A: Banks are just really good at enticing people to do things that they probably don't want to do if they had a little bit more information. Because a bank is going to take your $10,000, they say, all right, Anthony, I'm going to give you three and a half percent.
I'm going to loan it to Sam at 7% so he can go buy a, you know, let's say that, a new truck and I'm going to pocket the 3 1/2% difference. Anthony will get what we promised him and Sam's going to get his truck. And that's how these financial institutions are, are staying in business, is they're, they're connecting people who need money, people who want money and they're doing a good job of it.
[00:31:14] Speaker C: They have been. Especially when people are accepting 0% from Chase and they can get a Chase credit card at 30%.
[00:31:22] Speaker A: It's unbelievable. We've got an account where we keep our emergency fund which is at least a 12 month emergency fund. And whenever they throw the 3 cents of interest that I've earned in that account, I just, I just want to take those pennies and throw it right back at it. It's just so frustrating. It's laughable, the low amount of interest. But let's, let's go back to what you were saying. We talked about food and water, we talked about hard assets. What else is important when it, when it comes to planning or do we kind of want to go back into how do we be protected for a recession or a depression type environment?
[00:32:03] Speaker C: Good question. Let me, let me quickly finish. Right. That little paragraph or my little five step foundation thing. Because I do want to go back to, because maybe we spend more time on the food and get into specifics because literally people have asked like specifically what do I buy? So I'll, I'll share the stuff that I have.
But debt management, right. Don't owe anything to money. Your, your money goes further. Then back to our commercials, right? Income streams, income, something you count on consistently I think is number one, we like using pensions, we like using annuities for pensions because they're through insurance companies.
A lot of safeguards there.
But it's something that you know is going to come in every month and it's going to be consistent and it guarantees that you never run out of your money. So can you live off your investments and never run out of your money? Possibly, but there's no guarantees once you have that number hit. Because again, I like income over assets. Because if you have excess income, you grow your assets. If you don't have enough income, you have excess assets, you're spending down your assets and you're hoping your assets outgrow what you're spending now. And can they again? Maybe, but also they may not. But I Also find that if you have excess income and you know you drop your assets down, you use a chunk of those for excess income. You're not touching those assets anymore because now they are just kind of free to grow because you're building up your savings so much. I got too much. Like that's what I find is that mindset is people will spend more, they'll enjoy themselves more because they're not worried about running out.
Once you have that foundation, that's when you really diversify. And I'm not saying you don't. You do one step, 1, 2, 3, 4, and then diversify, diversify throughout all this, kind of in moderation. But like you prioritize, prioritize step one and have food and water before you care about anything else. Prioritize an emergency fund, something in cash, some hard assets, then prioritize the debt management, then the income than the diversification. Because again, I've said this so many times and I truly.
I guess I should clarify, I mean it to an extent. If, if you have excess income, and I know you have income you can't outlive, and if you take all of your money and you go to black play blackjack and you lose it all in one hand, like, I'm gonna be a little disappointed. But I do know you're not going to be out on the streets because I know, you know, you're gonna build, everything's gonna be covered. You're just gonna take some time to build those assets in it.
[00:34:34] Speaker A: Yeah.
[00:34:35] Speaker C: People talk about bitcoin up again. I don't know if you've seen this in last couple of weeks, but people have not been asking us about bitcoin since it was at 120. It dropped down to like 60.
Nobody asked us about it then. And we said on the show, we mentioned it so many times. Now's the time to ask us about this, right? And we've seen some slow growth. We haven't really talked about it, but there was a boom in this last week where it jumped from like 74 to like 85,000. And it's teetering again. But that was a massive jump in a shorter, long time. The article I had read talked about Dogecoin being up 15% and kind of leading the charge in growth and cryptos.
If you've heard this show from long enough. We play it every once in a while and I think I have it. I don't know if we can play it during. Maybe I'll find the email and send it to you, see if we can put in. But it was the guy who created bitcoin saying, it's a joke. Why is anybody buying this? We built it. Not for anybody to want it. It's supposed to be funny. And people talk about it like it's a real investment.
And we forget about NFTs. Remember, we spent, like, an entire year talking about how great NFTs were. Not great. I shouldn't say that. Other people telling us how great NFTs were, us questioning that. And when was the last time anybody, anybody at all has talked about NFTs falling off the face of the word crypto's tied into that. And I get that cryptos have, like, there's technology involved. Like, there is. There is something there. I know Jer's like, oh, it's just air and this, but it was like, there is technology.
You're buying a piece of that technology.
That part I don't necessarily agree with. It being the same as buying a stock in a company, but there's a little something there. Again, not a tangible, hard asset, but it's almost as real as your stock purchasing because you don't hold your physical certificates. So if something happens to the website that you hold that just like these cryptocurrencies, do, you really have those stocks? So I kind of see them as one of the same.
I don't even know where I was going with that. I was just saying with that logic, I guess put all of it in cryptocurrency if you want. Once your income set up, you do whatever it is.
[00:36:45] Speaker A: Interesting. We've got the chart pulled up. I think our first episode of another money show was April 2022, because we've been doing it four years.
[00:36:55] Speaker C: I think we're a little bit up towards four and a half, so we might have been.
Maybe not. No. March of 2022. Yeah, you could be right.
[00:37:03] Speaker A: So April 22 to September 26, Bitcoin has more than doubled in value. But if you take a look at the ride that it's been on, it is not a. It is not a stable ride at all. If you look over the last year, it's down nearly 25%, but, you know, starting to rise up 20 over the last six months. Unbelievable.
[00:37:28] Speaker C: Sam, how much are you into technology, like, computers, like, falling crypt. And the reason I ask because, like, I am not. Like, I don't know any of this, but I do have a buddy, Adam, who he does some trading with cryptos, but he buys, like, obscure mean coins because he thinks it's funny. Like, he doesn't care about investing. He's, he's just messing around. But I know that he knows about the technology. So we were on a road trip. I asked him how all this worked and he explained the intricacies of bitcoin. But he says for people that actually know what bitcoin is doing, the blockchain technology, he's like, it doesn't do it well. It was just the first to market. It's just if you ask a 90 year old in Sun City if they've heard of bitcoin, they have. If you ask them about all these other crypt. They have not you ask anybody. But people know about bitcoin, they associate bitcoin with cryptocurrencies even though it's only one particular thing. But it's like the one thing bitcoin's supposed to do. It doesn't even do well by a lot of factors to other things that do almost the exact same thing and are better and out there, but they aren't the name.
So it's kind of like the only thing to market. Because we do, when we talk about crypto and how crypto is doing, it's just allocated to bitcoin. It's just how bitcoin is doing. Bitcoin isn't even the best bitcoin essentially, but it's just, it's the one with the name. That's what we follow. So I. You can follow that and still not really know anything that's going on in the industry behind the scenes.
[00:39:00] Speaker A: Yeah, I mean it is. You can compare it to currency in a way and, and you can have a whole debate about whether or not it is currency. But you know, we've got the US Dollar here in the United States of America. If you go to Europe, you've got the euro, if you go to Japan, you've got the yen. And there's got to be a hundred currencies. I don't know exactly, but there's got to be a hundred plus currencies around the world that these sovereign nations print and issue. And it's the legal tender that people use to exchange for all debts, public and private, just like it says on the dollar bill.
Now if you go to Europe, somebody might accept your US dollars, but even though it's something that has value in some situations, if it's not the right environment, it's not going to be that powerful tool that currency should be where it can be kind of that form of trade.
[00:39:59] Speaker C: And would you want a currency this volatile?
[00:40:02] Speaker A: Oh, absolutely not. And see, but you're ab. But where I think I was getting was much how like other currencies, sovereign currencies tend to follow the dollar or at least their performance tends to be tied to the strength or weakness of the dollar.
Bitcoin is kind of serving as that, that currency that all others are based off of. So if you take just to throw out crypto names, Bitcoin, Ethereum, well, name some others. Dogecoin, Solana, all of them will have very similar charts just at their different values. The shapes of those lines will look the same because bitcoin seems to have the most trust.
Can you make money trading it or holding it? Yes, people have made money. People have lost money as well.
Be very careful. And you're right, nobody's mentioned NFTs in a while unless it's one of the lawsuits that any number of celebrities seem to be caught up in surrounding Tom Brady.
[00:41:07] Speaker C: No, Tom Brady was the cryptocurrency.
[00:41:09] Speaker A: I mean these NFT names or these NFT companies, I mean they had sponsorship deals with celebrities, sporting events, arenas. And that was something that never made sense to me because it seemed like more of a way to collect something rather than an asset that could potentially grow in value.
I don't foresee a world where we're going through the McDonald's drive thru and we're using Bitcoin to buy our McRibs.
But for some it's been a valuable investment, for others it's been a terrible one.
[00:41:50] Speaker C: It's just that it's an investment, it's not a currency. But I can't anywhere because I do know, I kind of see what you're saying with like, you know, there are currencies all across the world and we don't have a centralized one. This is a centralized.
It could be. But if nobody uses a currency, it's not. If you're just trading it back and forth amongst yourselves. Not a currency to me.
[00:42:14] Speaker A: NFTs were, were a joke. It was like digital baseball cards, you know, you may as well collect something that you can put your hands on.
Cryptocurrency. It all seems to be speculating on the idea that this blockchain technology is going to go somewhere and nobody invests in Bitcoin planning to hold it forever. They invest in Bitcoin planning to sell it, make a bunch of money and laugh all the way to the bank where they keep their real currency.
[00:42:51] Speaker C: Makes sense. Yeah, because you're just buying and selling it.
[00:42:54] Speaker A: But I mean, to answer your question, I'm really not into technology. All that much other than what we have to use for our daily lives. You know, driving a vehicle, operating a computer, playing some video games now and again, other than that, not really into tech.
[00:43:14] Speaker C: Okay. And I was just curious because maybe you do know some of those, you know, blockchains that are like Bitcoin but actually better for the technology sense. Because I, I don't, I don't know anything about that. But okay, I'll go back to. Because this is probably what we should have spent more time on anyways was the food, water, the hard assets.
Art. I just bought and I've been buying since I met jr, essentially because he's the one that got me into all this doomsday prep planning. But I do think we're kind of spoiled in Arizona because we really don't have many natural disasters. There aren't tornadoes, there's not massive flooding. Like we, we don't have these issues, these rolling blackouts. So, like, the stuff that we're saying now is really common sense stuff everywhere else, just not here. I would say we probably push it a little bit more instead of having like a week of food, have six months worth of food. Because it really isn't all that expensive. I mean, it may not be cheap up front, but you're buying it one time you're sitting on. So like, I just bought. There's a website called ReadyWise.
They got all kinds of deals on there, but it was like 300 servings, which I amount to about three months for one person, was like 199, some sort of special.
There's Augusta Farms on Amazon. I bought them a bunch of times. There's breakfast buckets, there's one month buckets, there's all kinds of things.
Those are probably, I don't know, 60 to 80 bucks.
Normally I've seen them skyrocket in price and I've seen them kind of drop down and be on like a heavy discount. But what does it really take to buy five buckets? You know, and it's different if you have a family of three, a family of four. You know, I can see that if you're trying to get six months for each person, a little bit storage, a little bit. But oh yeah, it's really priceless if things get that bad. Because I'm aware of this radio station. I'm aware of the people who listened because they like JR's, they like somebody saying, hey, things aren't right. There is doom and gloom. And I, you know, I put a more positive spin on things because I do Think things cycle. I, I, I don't disagree that things should get bad. Not, not necessarily should but historically this is their cycles and we haven't hit it. And I think it's going to be disastrous. I do think we'll get out of it. I think it's going to be fine. I don't think it's going to be Terminator 2 when we're fighting massive robot aliens from the future that are also AI robots. I, I don't know. Maybe. And maybe I'm way wrong and if I am very wrong that I will apologize on air to every do think it'll be a little less than that.
But why not if you have the means now you know if that same person is saying hey I've got 10,000 to to spend and I want to start doing stuff I get, you know if you've got 20,000 credit card debt or 20,000 on a car, put it towards a car. But if you go down this list that I'm saying are priorities.
Maybe you take a TH000, maybe take 2000, maybe you take 500. Who cares. You know something. Just have something. But you start buying these food rations and the water because the water is the most important. You can live without food for a while. You can't live without water.
And all these water thing or all these food buckets. The dehydrated food that I'm talking about. They all need about a cup per which I didn't know at first because I was stocking food with the assumption we'll always have access to water which is terrible assumption. Should never assume.
I just it comes out of the faucet. So assuming it keeps coming out of faucet focus on food.
[00:46:49] Speaker A: Yeah.
[00:46:49] Speaker C: But realizing that it may not always come out of the faucet. Especially you talk about those attacks on utility centers we brought up on the show before. I'll leave that for Junior when he gets back.
But it could happen. So you got to focus on the water too. Those water jugs I'm looking at the ones I bought and there I've gotten a couple of different ones but they're about 20 bucks.
Again if you're going to get 10 of them. It's not exactly cheap.
[00:47:16] Speaker A: But you're going to need a source.
[00:47:19] Speaker C: Free out of your focus or out of your house.
[00:47:21] Speaker A: Yeah, you're going to need a source.
It's hard to store water. You can't compress it down into a tighter space like you can with chili or whatever you've got in your, in your Supply or your ration bucket.
Something that could be really useful is a filtration system, whether it be something that doesn't require electricity, like life straws or other systems like that that are manual. If it is something that requires electricity, you're probably going to want to be talking energy. You're probably going to want to be talking fuel in a generator. And hey, if you've got a bunch of food ration buckets but not a generator, I bet if.
What is it? What does J. R Say when the ship hits the sand, you'll be able to trade one of those buckets for a generator because people will trade what they have for what they don't have, especially if they don't have food.
[00:48:17] Speaker C: So that's.
[00:48:19] Speaker A: That's a way you could go to.
[00:48:21] Speaker C: I'm glad you said that because that.
The preparation of food and things like that too. So if you don't have power right, it's gonna suck. A generator's a big, bulky thing. Are you doing de gas? Are you gonna do solar? Is it gonna be enough to power what you really need?
But the other big supplies that we'll get is candles, lots of candles, lighters.
And then I save, you know, stuff to start fires. Jer keeps phone books. I keep the lint out of the.
Out of my dryer every time.
[00:48:56] Speaker A: That's what we do.
[00:48:58] Speaker C: There are emergency supply tablets too, that I bought a couple of things which would be very gross to eat, but again, they've got a long lifespan. It was just miscellaneous things, Kool Aid, stuff like that, to add flavor. It's cheap, it lasts for forever. But also I found. Very cool. I don't know if you've seen these yet.
And again, if you don't have power, this doesn't really help you. But say the power stays.
Candles can get expensive and the lighters can run out of fluid. So obviously everything has pros and cons, but there are little electric lighters that you charge with the usb and it has a little zap thing to it. So it's like two prongs in it, zap. So you can use that to certify. It's like a little taser, but you need it to set fire. So I bought a few of those and I leave those charged around the house. So that way I can save the fluid in the lighters for emergencies. And I can use that to light candles and stuff around the house. Now those are really cool.
I forget about all the. The cool stuff that we've stocked up.
Knives, probably important, you know, to open things. Tools. I'm big on tools. I work on my car all the time. That's one of the things I don't mind spending money on. I go to Harbor Freight, I go to Home Depot. I buy all kinds of tools because you never know what you're going to need. So it's nice to have all kinds of stuff there.
Stuff for fires, cookware, obviously, normal kitchen stuff. You're probably fine. It wouldn't hurt to give camping, cook, beer, cook gear. They say cook, beer, camping.
Yeah. Stock up on whiskeys, too. Beers go bad. I don't know if people do that because Jared did stock up on beer one time and I'm like, how old is this? It's like 8, 9 years old because we got it at the floor. Beer at the. Oh, my God. What is it?
The little. The country store on Snowflake out by his house. We love that place.
But they'll have cheap beer, so it was like, oh, you know, he's a pack rat. Saves store for, you know, when you need it. Those go bad. I love whiskey, so I stockpile whiskey. Problem is, I drink a lot of it. So how long? And it's the world.
At least I can buy in bulk and it holds.
[00:51:08] Speaker A: Yeah, whiskey doesn't take up quite as much volume as beer or water, and that can definitely be a good asset for you. Hopefully all this doom and gloom that we're finishing the show with, you know, holds off some of the hate mail that we're likely to get. But that's not our fault, Anthony. That's just because J R is not here. But I think he's planning on next week.
[00:51:28] Speaker C: Significantly less exciting than he is. And I didn't really know. I mean, I looked up news stories, but a lot of stuff, it's. It's the same old. And I don't have the excitement for it. The building that foundation and really focusing on food, water, hard assets, and even. Not even the hard like food and water, because at the end of the day, that is all you really need. And it's strange for a, you know, a radio show supposed to be out of finances to spend 30 minutes talking about food and water, but at the end of the day, you can live off of food and water. You can't live off of your McDonald's stock.
But we talked about finances, too. It was kind of interesting, you know, to talk about actual stocks that went up in 2008. Still surprised me because literally I. I look at every portfolio and I guess a lot of times I'm Looking at mutual funds, ETFs. So it's a group of stuff. I don't go through the individuals as often, but kind of interesting to see that in bad times those went up, but they're going down now and we're in bad times while other things are going up. It just, I don't know, it doesn't make sense. Was that. I see your note. So the end of the show, we got it. Yeah, we've, yeah, we should probably do.
[00:52:35] Speaker A: Got a, we've got about a minute to, to wrap it up. We know it was a little different for everybody this week, but I think, I think we put some good lessons out there onto the airwaves and you know, it's not going to be a waste, especially to, you know, water is not going to go bad. Those filtration systems are going to be valuable.
And worst case scenario, if that, whether it's canned food, you know, if it's a year from expiration, donate that stuff and restock.
What's the expiration? Yeah. Or eat it.
What's the expiration date on some of those packets?
[00:53:10] Speaker C: It says up to 25 years. Okay. So. And I've been buying them for probably six, seven, eight years. So it's, that's why I was like, I need to. Because I stockpiled so much. I was like, oh, I'll have these. But I think some are less. Some are probably five to 10 years. But you just gotta check there's all kinds of places out there, do some research. But I just. Those were the Readywise and the Augusta Farms off Amazon and stuff that I buy. So anyways, that's it for today's show. Hopefully you got some useful information out there. If you like what you heard, you have any questions or you just want to send us emails to say we never want to show without Junior again, reach out to us at teamothermoneyshow.com find us on the web. Anothermoneyshow.com I'm rebuilding the Rochford Financial website right now to kind of be more clear to the point of what it is that we do and want to accomplish. So check out our Rochford Financial site too. It's not the new one's not live yet, but we're getting there. Give us a call, 623-523-0444. That number again is 623-523-0444. Thanks for listening. We'll see you again next Saturday at 5am and noon right here on 960.
[00:54:19] Speaker B: The Patriot 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 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.
[00:55:00] Speaker C: Hi, I'm Anthony Crail, co host of another money show airing on 960 the Patriot, Saturdays at noon and partner of Rochford and Associates in Sun City.
If you've heard our show, you know it's more news based and how current events could affect your finances versus an hour long infomercial. Well now it's time for that infomercial. But I don't need an hour each week to tell you what I can say in 60 seconds. The key to a happy retirement is income, Income, income, income. Clients with low assets and those with high assets all have one thing in common, a fear of running out. Assets come and go.
Income is forever. Self funding pensions is the key to a happy retirement and we 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 and let us help you not worry about your retirement.
