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How much money do you need to retire in every US state? · The Financial Exchange Show

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Speaker 2: Kicking off hour two on the Financial Exchange, and markets
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Speaker 2: not really find a much direction today, a little bit
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Speaker 2: of downward drift, but no conviction behind it.
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Speaker 3: Really.
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Speaker 2: We've got the Dow down forty one points today, the
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Speaker 2: S and P's down ten, NASDAK down sixty five, so
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Speaker 2: you do have the tech heavy NASDAK kind of, you know,
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Speaker 2: continuing to perform the worst here that being led down
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Speaker 2: by AMD which is off about four point seven percent,
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Speaker 2: Meta down about one point seven and Shopify which is
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Speaker 2: down about one point one percent. So again all three
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Speaker 2: major US indices are sliding today.
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Speaker 3: Ten year US Treasury not really.
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Speaker 2: Moving a ton was down a little bit earlier in
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Speaker 2: the day, but now it's off two tenths of a
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Speaker 2: basis point to four point six eight seven, So just
1:59
Speaker 2: no real movement on that front. Oil down seven cents
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Speaker 2: of barrel to seventy four eighteen. Unfortunately, with oil prices
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Speaker 2: back in the mid seventies, it is continuing to push
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Speaker 2: up on gas prices just a little bit, another tenth
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Speaker 2: of a cent rise today up to three h six
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Speaker 2: and nine tenths on the tripa national average for gas prices.
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Speaker 2: And we've got gold today up fifteen sixty ounce to
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Speaker 2: twenty six point eighty one. Even, Paul, We've got a
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Speaker 2: piece here in market Watch. It's titled America's frozen housing
2:29
Speaker 2: market is finally starting to thaw.
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Speaker 3: What kind of thong are we seeing?
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Speaker 2: With interest rates still north of seven percent on the
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Speaker 2: thirty or fixed rate mortgage, what.
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Speaker 4: We're seeing check is something, but I wouldn't necessarily waive
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Speaker 4: any victory flags just yet. In terms of the home
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Speaker 4: sales data that we've been getting for the month of November,
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Speaker 4: what we saw is a uptick in existing home sales
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Speaker 4: by about four point eight percent. That was a seasonally
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Speaker 4: adjusted pace of four point one to five million. That
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Speaker 4: was the best since March of twenty four last year.
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Speaker 4: If you also take a look at just the amount
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Speaker 4: of inventory of unsold existing homes throughout the country, we're
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Speaker 4: at one point three to three million. That's equivalent to
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Speaker 4: about four months of supply or so.
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Speaker 3: You know.
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Speaker 4: The crux of this piece that we're covering here is
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Speaker 4: that perhaps housing sentiment has ticked up and that people
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Speaker 4: have begun a little bit more accustomed to the highest
3:26
Speaker 4: interest the higher interest rates on the mortgage side of
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Speaker 4: things that they are now in a better shape or
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Speaker 4: more used to paying. We sit at six point nine
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Speaker 4: to one percent on the thirty year fixed mortgage as
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Speaker 4: of the week closing on January second. That will likely
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Speaker 4: uptick from all the stuff that we've seen on the
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Speaker 4: US ten year treasury from Freddie Mack. But ultimately for
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Speaker 4: penning home sales too, you're looking at a little bit
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Speaker 4: of uptick in the Midwest, the South, and the West,
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Speaker 4: but the Northeast we're still seeing. To Clyde, I summarize
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Speaker 4: all those points by saying, I don't think that we
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Speaker 4: are going to see a tremendously active housing market in
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Speaker 4: this year. There certainly will be a lot more inventory,
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Speaker 4: it seems like from all that we're seeing. Yeah, in
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Speaker 4: the southeast and the Southwest, there'll be more inventory available,
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Speaker 4: but I don't know if that necessarily would translate to
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Speaker 4: a significant amount of more sales.
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Speaker 2: So couple things first, In both twenty twenty three and
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Speaker 2: twenty twenty four, we had these little mini jumps in
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Speaker 2: sales activity, where you know, early twenty three we went
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Speaker 2: from like four million units annualized to four point five
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Speaker 2: to three million. Early twenty four we went from three
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Speaker 2: point eight eight to four point three eight, So we
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Speaker 2: had these you know, little bumps, and both of them
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Speaker 2: were a few months after yields bottomed and were really low,
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Speaker 2: so people locked in their mortgage rates you know, earlier,
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Speaker 2: and then they you know, were able to buy homes
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Speaker 2: with those lower rates. The existing home sales data that
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Speaker 2: we have for November, yields bottomed in mid September, so
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Speaker 2: if you were buying a home, if you were closing
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Speaker 2: on a home in November, you had a chance to
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Speaker 2: lock your mortgage rate in when you were buying in September. Like,
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Speaker 2: it kind of makes sense. The more real time data
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Speaker 2: that I've seen from Mike Simonson from all this research,
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Speaker 2: we have him on the show every now and then,
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Speaker 2: and his weekly data that that his firm puts out.
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Speaker 2: They are showing that newly pending home sales so not
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Speaker 2: like the total that's still out there, but basically week
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Speaker 2: to week, like how many new contracts are being signed
5:23
Speaker 2: each week. The last couple of weeks now are back
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Speaker 2: to basically flat year over year, so not showing any
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Speaker 2: improvement after his data had showed Yeah, we're seeing like
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Speaker 2: four to five percent gains in sales volume in September
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Speaker 2: and October and things like that, like in the pendings,
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Speaker 2: So I think it's still a very rate sensitive market.
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Speaker 2: And his firm, they're also projecting that we get back
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Speaker 2: to pre pandemic levels of inventory late this year or
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Speaker 2: early twenty six. So that's another like forty percent expansion
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Speaker 2: in inventory levels, thirty to forty percent expansion in national
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Speaker 2: inventory levels.
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Speaker 3: And the big thing.
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Speaker 2: Is, look the places that are already back to pre
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Speaker 2: pandemic inventory levels. Home prices are falling in those. It's Florida,
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Speaker 2: it's Texas, it's parts of the southeast and Southwest. In
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Speaker 2: addition to those areas, you know some communities in Arizona
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Speaker 2: and Georgia and North Carolina included as well. So I
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Speaker 2: think that where I get to on this is, hey,
6:22
Speaker 2: if you're gonna have more inventory coming on board and
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Speaker 2: rates stay where they are, the only path to more
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Speaker 2: sales is prices down, or you can have the same
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Speaker 2: number of sales, but prices don't budge. It's and I
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Speaker 2: don't know exactly which way this ends up going, but
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Speaker 2: I struggled to get to you know, pre twenty twenty
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Speaker 2: two when rates spiked our norm like if and again
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Speaker 2: like excluding like even twenty twenty and everything like that.
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Speaker 2: If you look at the last decade, we were generally
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Speaker 2: seeing an annualized pace five and a quarter to five
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Speaker 2: point seventy five million units a year like that. That's
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Speaker 2: kind of the norm. So how do you see a
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Speaker 2: thirty you know, twenty to thirty percent jump in sales volume.
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Speaker 2: There aren't enough people who can afford homes with rates
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Speaker 2: where they are right now and these prices. So if
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Speaker 2: you want to get back to more normal volumes, prices
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Speaker 2: have to come down how much.
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Speaker 3: I don't know.
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Speaker 2: I don't know, but you know, talk to anyone who's
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Speaker 2: trying to move a property in Florida right now, and
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Speaker 2: they'll tell you, yeah, it's been sitting for a while.
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Speaker 2: I'm not getting the bids I want. You know, I've
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Speaker 2: got neighbors that are listing and they're cutting prices, trying
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Speaker 2: to undercut me. So like it's I'm not saying that's
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Speaker 2: gonna happen in the Northeast, where you know, war based,
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Speaker 2: because the Northeast has some of the lowest inventory levels nationally. Yeah,
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Speaker 2: Connecticut's still like twenty five percent of pre pandemic levels.
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Speaker 2: The rest of the Northeast is sitting around like fifty
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Speaker 2: to sixty percent. I think depending on the state that
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Speaker 2: you're looking at. So I think ultimately I can believe
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Speaker 2: in a path towards higher volumes because when when homes
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Speaker 2: get listed, it's because someone wants to sell them, and
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Speaker 2: eventually they're gonna find a way to sell it. But
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Speaker 2: higher volumes at these rates means prices have to pull back.
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Speaker 2: Is it two percent, five percent, ten, I don't know.
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Speaker 2: But the other good thing is, look, the people selling
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Speaker 2: these properties generally aren't horribly overlevered. They were back in
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Speaker 2: two thousand and seven, and so I don't have concerns
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Speaker 2: about like massive numbers of short.
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Speaker 3: Sales and things like that.
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Speaker 2: In some markets, you could potentially see that if you
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Speaker 2: bought at the very top in Austin, Texas, yeah you
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Speaker 2: might have, you know, some short sale problems if you
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Speaker 2: borrowed a ton, But even there, you weren't seeing like
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Speaker 2: a ton of people borrowing like ninety five percent loan
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Speaker 2: to value. It was yeah, lenders were pretty tight on stuff.
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Speaker 2: And so even if you're eighty percent loan to value,
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Speaker 2: you're not gonna have a twenty percent you've pick made
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Speaker 2: but ten or fifteen.
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Speaker 3: Look here's the thing.
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Speaker 2: In the last two years, you've paid off six percent
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Speaker 2: of that right, so now you're loan to value. Even
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Speaker 2: if price didn't change was you know, seventy four and
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Speaker 2: even if you're taking a ten percent haircut from the
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Speaker 2: peak plus your commission to your agent, you're still walking
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Speaker 2: away with you know, eight to nine percent of the
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Speaker 2: property value.
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Speaker 3: So short sales are not going to be the problem
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Speaker 3: this time. Yeah.
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Speaker 4: One other quick note here, two of ten people, according
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Speaker 4: to the Federal Housing Finance AHC, have mortgages that are
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Speaker 4: sitting at six percent or more. So still a swa
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Speaker 4: a huge walth of people that are locked in under
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Speaker 4: that six percent level, and some of those, you know,
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Speaker 4: nostalgically low levels of twenty one and twenty they are
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Speaker 4: at three or four percent.
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Speaker 2: Along with this, Zilo predicting that Providence, Rhode Island is
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Speaker 2: going to be one of the nation's hottest housing markets
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Speaker 2: in twenty twenty five. What's what's going on in dear
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Speaker 2: old Providence.
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Speaker 4: Chuck, I will say that the definition of hotness by Zillo,
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Speaker 4: there's some nuance to it.
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Speaker 2: Before everyone you're saying there's a Zillo hotness index.
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Speaker 4: The way that they are determining what is hot Tucker's
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Speaker 4: que me up here, thank you. With some of these
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Speaker 4: other ones that round up the top five, you wouldn't
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Speaker 4: necessarily associate these hot Indianapolis, Hartford, Philly, Providence, and Buffalo
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Speaker 4: are the top five. What is taken to account here
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Speaker 4: is how quickly homes are selling in the particular area.
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Speaker 4: The local home value growth, so how much is your
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Speaker 4: home appreciating within that local era. The amount of job
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Speaker 4: growth in that area per new home that's being permitted,
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Speaker 4: so is there more job growth than homes that are
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Speaker 4: actually being built with an area, And affordability weighs into
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Speaker 4: so all four of those factors lead to a different
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Speaker 4: look in terms of what the hottest housing markets are.
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Speaker 4: Buffalo is a back to back champion. Unlike their Super
10:50
Speaker 4: Bowl limited lack of success, they were able to claim
10:53
Speaker 4: we don't have any Buffaloes. There's hopefully thank Bufalo Station
10:57
Speaker 4: that they were back to back ted winners on this
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Speaker 4: hotness housing market where they have the relative affordability, a
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Speaker 4: lot of job growth in the area, and a real
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Speaker 4: scarcity of homes out there. Boston, they studied fifty metro
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Speaker 4: areas when they were looking at this Boston came in
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Speaker 4: at sixteenth. You know, the affordability piece drags down the
11:19
Speaker 4: Boston or New York's of the world.
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Speaker 2: Paul, how much money do you need to retire in
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Speaker 2: every US state?
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Speaker 1: Go?
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Speaker 4: I think I think I could get us to the
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Speaker 4: end of the hour. Uh if we take a look
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Speaker 4: at some of the numbers that came out from this one.
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Speaker 2: But no, literally, let's go alphabetical Alabama seven hundred and
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Speaker 2: seventy three thousand, Alabama, Alaska eras.
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Speaker 6: No, we're not doing We're not doing every state can
13:42
Speaker 6: we do that?
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Speaker 3: Which states can we do?
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Speaker 2: Probably the New England ones are pretty smart, and maybe
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Speaker 2: like Florida, Okay, Connecticut.
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Speaker 6: Arizona, maybe Connecticut.
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Speaker 2: One point one six mili. Let's talk a little bit
13:52
Speaker 2: about how they get their first Paul, yep. This is
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Speaker 2: UH data from the Bureau of Labor Statistics, and they
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Speaker 2: calculate annual living expense is for each state. And then
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Speaker 2: what they do is they use the four percent rule,
14:05
Speaker 2: the thought that, hey, you can withdraw four percent of
14:07
Speaker 2: your portfolio over the long term, and that's generally a
14:09
Speaker 2: safe rate of you know, withdrawal. Whether it is or
14:12
Speaker 2: not obviously depends on your specific situation. But that's how
14:15
Speaker 2: they get to these numbers.
14:16
Speaker 4: And they subtract out the average solid security benefit as
14:19
Speaker 4: part of that too, assusment that you're receiving that yep.
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Speaker 2: So Connecticut annual cost of living sixty seven thousand savings
14:25
Speaker 2: need to retire about one point one six million.
14:28
Speaker 6: Yep.
14:28
Speaker 2: Uh, Florida the annual living expenses, Uh my, it's a
14:35
Speaker 2: cut off.
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Speaker 4: I got you sixty one nine. You need nine hundred
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Speaker 4: and seventy seven k to live in Florida.
14:43
Speaker 3: There you go.
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Speaker 2: Uh, let's do Hawaii, just if you want to get
14:46
Speaker 2: aspirational about it.
14:47
Speaker 3: Hawaii.
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Speaker 2: They annual living expenses one hundred and ten thousand savings
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Speaker 2: need to retire.
14:51
Speaker 3: Two point two million.
14:52
Speaker 2: Yes, not cheap obviously with gas at like five dollars
14:56
Speaker 2: a gallon. And I don't even know how much eggs
14:58
Speaker 2: would be in Hawaii, but a lot barely know what
15:00
Speaker 2: they are in Massachusett. He Paul, I got you that
15:07
Speaker 2: you did. Paul walks in the grocery store. I'd like
15:10
Speaker 2: to buy one egg please? Those are nine bucks each.
15:16
Speaker 3: I brought it twenty if you are extra God, I
15:18
Speaker 3: love why Uh Aloha?
15:21
Speaker 2: Maine. Annual cost of living sixty eight thousand. Savings need
15:24
Speaker 2: to retire one point one four million. Let's see continuing
15:28
Speaker 2: down the list here New Hampshire.
15:31
Speaker 3: Where Massachusetts go? Is that?
15:33
Speaker 2: Can I jump in Massachusetts?
15:35
Speaker 3: Yeah?
15:35
Speaker 4: If you got the list, pull it one point six
15:37
Speaker 4: four five million. An annual cost of living of eighty
15:40
Speaker 4: eight thousand. New Hampshire is another one that you mentioned,
15:43
Speaker 4: one point one to three million in terms of say
15:46
Speaker 4: one point yeah, one point one to one million in
15:49
Speaker 4: terms of savings, an annual cost of living of about
15:51
Speaker 4: sixty seven thousand. Let's take a look at do we
15:55
Speaker 4: cover main yet here Maine we hit that one yep, Okay,
16:00
Speaker 4: let's see Vermont is one point one and sixty eight thousand,
16:06
Speaker 4: very similar to New Hampshire Island. Rhode Island. Let's take
16:09
Speaker 4: a peek here, they were sixty seven thousand, annual cost
16:14
Speaker 4: of living one point one million, So that seems to
16:17
Speaker 4: be kind of the recurring theme for the New England
16:20
Speaker 4: states is one point one million in savings with sixty
16:22
Speaker 4: seven thousand as the annual cost of living. Keep in mind,
16:25
Speaker 4: this is bare bones minimum. This is not any type
16:28
Speaker 4: of entertainment or travel. This is just the bare necessities.
16:32
Speaker 2: I wish I could have this list, and I'm sure
16:35
Speaker 2: it exists on the internet somewhere. I wish I could
16:38
Speaker 2: have this list from I don't know, twenty fourteen or
16:41
Speaker 2: something like that, like how much to retire in each state? Then,
16:46
Speaker 2: just because what I'm interested is not how much the
16:48
Speaker 2: overall cost has gone up, but I'm interested in just
16:52
Speaker 2: as an example, the difference between Massachusetts and Florida right now,
16:57
Speaker 2: Massachusetts saying is like one point six million and Florida
17:01
Speaker 2: is what did you say it was?
17:03
Speaker 3: It's one of the ones that's.
17:04
Speaker 2: Blocked out nine hundred and seventy seventy k okay, So
17:07
Speaker 2: the difference there, it's almost twice as expensive to retire
17:11
Speaker 2: in Massachusetts as compared to Florida. In this example, for
17:15
Speaker 2: most of New England, it's about twenty percent more expensive.
17:19
Speaker 2: And what I'd be curious at is the cost of
17:22
Speaker 2: living in Florida has clearly gone up the last few
17:24
Speaker 2: years as well, when you're talking insurance costs, you know,
17:27
Speaker 2: even property values, just what's happened to them in the
17:29
Speaker 2: last decade. And what I'd be curious at seeing is
17:32
Speaker 2: curious in seeing, curious of seeing. What I'd be curious
17:36
Speaker 2: to see is what was the difference in those costs
17:41
Speaker 2: from New England down to Florida ten years ago, because
17:44
Speaker 2: I anticipate it was much wider, Like there was a
17:47
Speaker 2: much bigger cost savings in moving from New England to
17:50
Speaker 2: Florida in twenty fourteen, would be my guess.
17:53
Speaker 3: But I don't have the.
17:54
Speaker 2: Data anywhere, and I I'm sure I'm not going to
17:56
Speaker 2: find it from twenty fourteen, because I don't even the
18:00
Speaker 2: even though if those pieces were published on the internet
18:02
Speaker 2: then but it'd be something that I'd be interested in
18:05
Speaker 2: looking at. But again, this is a great reminder that
18:10
Speaker 2: where you decide to retire has a huge influence on
18:15
Speaker 2: what your retirement finances look like. It's it's not just
18:20
Speaker 2: and most people know this, you know, whether intuitively or
18:23
Speaker 2: they've spent time looking at it, but there's a real
18:27
Speaker 2: difference in what you need to spend in different regions.
18:31
Speaker 2: And also remember these are looking at statewide things. The
18:34
Speaker 2: difference from you know, Massachusetts to Miami is going to
18:39
Speaker 2: be far different from the difference between Massachusetts to Orlando
18:43
Speaker 2: or Pensacola.
18:44
Speaker 3: Or something like that.
18:44
Speaker 2: It's these are big states we're talking about here, and
18:48
Speaker 2: you can have different costs even within them, depending on
18:51
Speaker 2: what you're trying to do and where you're trying to live.
18:55
Speaker 2: Taking a look at markets, as we had towards the
18:57
Speaker 2: bottom of the hour, still just a little bit of
18:59
Speaker 2: very very mild downward drift that was off twenty six points.
19:02
Speaker 2: S and PP's down five, Nasdack down thirty five. So
19:05
Speaker 2: no major moves today at this point, just kind of
19:10
Speaker 2: a little bit of slip slide, but but nothing too
19:13
Speaker 2: significant to this point in the day. We're gonna take
19:16
Speaker 2: a quick break here, but when we come back, we
19:18
Speaker 2: have the trivia answer, and then we're gonna talk a
19:22
Speaker 2: little bit about tax brackets. And after that I want
19:25
Speaker 2: to get to what's going on at CES the Consumer
19:27
Speaker 2: Electronics Show. What kind of smart toilets are they showing
19:30
Speaker 2: us this year?
19:31
Speaker 3: We'll let you know.
19:41
Speaker 1: Bringing the latest financial news straight to your radio every day,
19:46
Speaker 1: it's the Financial Exchange on the Financial Exchange Radio Network.
19:51
Speaker 1: Text guys six one seven TRN six to two one
19:54
Speaker 1: three eight five with your comments and questions about today's show.
19:57
Speaker 1: This is the Financial Exchange Radio at work.
20:03
Speaker 5: The trivia question today was what caused President Bush to
20:06
Speaker 5: skip his speech the night.
20:08
Speaker 6: In nineteen ninety two at the.
20:10
Speaker 5: Japanese Prime Minister's residence. Well, he puked on the Prime minister.
20:14
Speaker 6: Yeah, that's right.
20:15
Speaker 5: Unfortunately for President Bush and the Japanese Prime Minister, Bush
20:19
Speaker 5: got sick during the dinner and vomited on the Prime
20:24
Speaker 5: Minister's lap. Scott from Sudbury, mass is our winner today,
20:29
Speaker 5: thank you, and he's taking home a Financial Exchange Show
20:32
Speaker 5: T shirt. Congrats to Scott, and we played trivia every
20:35
Speaker 5: day here on the Financial Exchange. See complete contest rules
20:38
Speaker 5: at Financial Exchange Show dot com, Paul.
20:41
Speaker 2: Each year, the federal government or specifically the IRS, adjusts
20:45
Speaker 2: the tax brackets, and basically what they do is they
20:49
Speaker 2: make them bigger, and in doing so, if you are
20:54
Speaker 2: making the same amount that you were making in the
20:57
Speaker 2: prior year, all else being equal, it generally ends up
21:00
Speaker 2: meaning that you pay less tax because more of it
21:03
Speaker 2: falls into lower brackets, or at least you potentially do,
21:07
Speaker 2: because hey, if you're in the lowest bracket, then well
21:10
Speaker 2: it's tough to pay too much less than the lowest rate, right.
21:15
Speaker 4: I was sort of scratching my head through that piece,
21:18
Speaker 4: but I think you summarized it relatively well, and I
21:21
Speaker 4: mean some of it ties into just keep an eye
21:24
Speaker 4: on what you're withholding from a federal and state tax perspective.
21:28
Speaker 3: Yeah, tough.
21:29
Speaker 2: Talk to your tax people every year, and you know,
21:31
Speaker 2: if you're getting too big of a refund, you know,
21:33
Speaker 2: bigger than you want, and you find it, Hey, you
21:35
Speaker 2: don't want to be lending the government money when you
21:38
Speaker 2: can still get you know, three to four percent on
21:40
Speaker 2: money market rates and you know, savings accounts and things
21:43
Speaker 2: like that. Okay, talk to your accountant likewise, if you
21:46
Speaker 2: find yourself paying too much or you know, running into
21:48
Speaker 2: penalties and things like that, talk to them as well
21:50
Speaker 2: to make sure you have the right amount of withholding.
21:52
Speaker 2: It's something that you should be doing every year to
21:55
Speaker 2: make sure that you are in a good spot.
21:57
Speaker 3: Yeah.
21:57
Speaker 4: One quick thing important to know is that, you know,
21:59
Speaker 4: sometimes people sell bit of refund, but you phrased it
22:01
Speaker 4: appropriately there that it's basically you've just been lending the
22:04
Speaker 4: government your money over that period of time and particular
22:07
Speaker 4: where interest rates where they are. It's not like finding
22:09
Speaker 4: a twenty dollars bill in your pocket that should have
22:11
Speaker 4: been in your pocket the whole time, collecting interest on it.
22:13
Speaker 4: You really want to be right on the measure where
22:15
Speaker 4: you're barely paying or you barely getting a refund. That's
22:18
Speaker 4: where kind of the serendipity is in taxes.
22:20
Speaker 3: Right.
22:21
Speaker 2: Remember if if you're getting a refund of two thousand dollars,
22:24
Speaker 2: if you would had that money just sitting in a
22:27
Speaker 2: CD for the last year, you know, low risk, Okay,
22:30
Speaker 2: you were probably getting I don't know what three and
22:32
Speaker 2: a half to four and a half percent, So call
22:33
Speaker 2: it eighty bucks.
22:35
Speaker 3: That could get you like four eggs. Just pointing that out.
22:40
Speaker 2: Right, Paul Jackpot.
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23:42
Speaker 2: So cnet always goes to the Consumer Electronics Show CIS.
23:46
Speaker 2: It's always like the first week of the new year,
23:50
Speaker 2: and they put together their list of a quote the
23:53
Speaker 2: headline ie popping home tech gadgets were loving from CES
23:57
Speaker 2: twenty twenty five. So far, let's go through some of these.
24:01
Speaker 2: There's something called the Dream Robot vacuum, and it's like
24:06
Speaker 2: other robot vacuums and that it goes around and well vacuums,
24:11
Speaker 2: but it can uh go on uneven surfaces because of
24:17
Speaker 2: like support legs that allow it to you know, go
24:22
Speaker 2: up little steps and things like that.
24:25
Speaker 4: Okay, do you guys do you guys use those in
24:28
Speaker 4: your home? The Rumba, which is the most popular, That's
24:32
Speaker 4: what happened with me, Tucker, you know had it.
24:34
Speaker 2: Oh, this is great collecting dust. Within six months we
24:38
Speaker 2: used it for I think a little bit longer. It
24:40
Speaker 2: became challenging once we had kids because they would screw
24:44
Speaker 2: with it while it was and.
24:49
Speaker 3: I don't think our's got that aggressive.
24:52
Speaker 2: They would like pick it up and turn it around,
24:53
Speaker 2: so like it just wouldn't clean areas then, or it
24:55
Speaker 2: would run out of battery before it could, you know,
24:58
Speaker 2: clean them.
24:58
Speaker 6: So also torments the dog too, the vacuum does.
25:01
Speaker 3: Let's fine, the dog needs to be putting its place sometimes,
25:04
Speaker 3: you know.
25:04
Speaker 6: As a vacuum.
25:05
Speaker 3: Not everyone can love your dog.
25:07
Speaker 2: Yeah no, not everyone loves dogs. My point is like
25:10
Speaker 2: they need to feel what the rest of us feel.
25:12
Speaker 2: Where hey, someone might not like you. You know, I'm
25:15
Speaker 2: not saying like aggressive or anything. Yeah, come on, Gouvey's
25:19
Speaker 2: new lamp now grooves to your music. So it's a
25:22
Speaker 2: smart lamp with speakers built in that sinks the light
25:27
Speaker 2: to the music and quote, it has a smart lava
25:32
Speaker 2: lamp vibe that offers up one hundred different color scenes
25:35
Speaker 2: to choose from. Sounds like my dream for college?
25:39
Speaker 3: Sure exactly. You know.
25:41
Speaker 2: They have a smart indoor garden that holds fifteen plants
25:45
Speaker 2: and can be placed anywhere in your home. And I
25:48
Speaker 2: guess waters are steams them in order, not steams because
25:51
Speaker 2: they don't cook the plants, but it like mists them
25:54
Speaker 2: to water them automatically. Okay, sounds fine. I'm not blown
25:59
Speaker 2: away by any of this so far. Smart lawnmowers terrified
26:03
Speaker 2: of Like, I just I don't as that terrify you
26:08
Speaker 2: because unlike the vacuum where we talk about like, oh
26:10
Speaker 2: it torments the dog, Like it's not gonna hurt the dog.
26:12
Speaker 3: This can hurt animals.
26:14
Speaker 6: Yeah, but you can.
26:16
Speaker 5: I mean you can see it coming like at you.
26:19
Speaker 5: It's not going seventy five miles an hour, you can't.
26:21
Speaker 3: But like, here's the thing.
26:22
Speaker 2: If if I'm mowing the lawn personally and something darts
26:25
Speaker 2: in front of me, I know I'm gonna stop. And
26:27
Speaker 2: this I'm sure says that it will stop. But do
26:30
Speaker 2: you really trust it?
26:32
Speaker 1: Right?
26:32
Speaker 6: I just I don't know what it's a thousand dollars.
26:35
Speaker 4: Yeah, and look at the size of this thing. I
26:37
Speaker 4: don't know how much workload it can really handle here.
26:41
Speaker 4: It's not that particularly big.
26:42
Speaker 6: Yeah.
26:43
Speaker 2: Yeah, let's see turn your still water into carbonated water
26:46
Speaker 2: on the go with the Rome soda top. It's got
26:49
Speaker 2: a Co two cartridge in the lid.
26:50
Speaker 6: It's only fifty bucks.
26:52
Speaker 2: But still, I mean, I'm not really a carbonated water fan,
26:55
Speaker 2: so I can't stand it.
26:56
Speaker 3: I guess if you're a fan of.
26:57
Speaker 2: It, fine, like a seltzer now and then you know,
27:00
Speaker 2: I got one here that I do find to be
27:02
Speaker 2: really obnoxious. This is my least favorite from the list.
27:05
Speaker 2: It's an AI powered smart planter that's trying to create
27:08
Speaker 2: the perfect watering schedule for your plant. It's called the
27:11
Speaker 2: Leafy Pod, and it has an app and it alerts
27:14
Speaker 2: you if your plant needs more or less light or
27:16
Speaker 2: a change in scenery through the app that pairs with
27:18
Speaker 2: the planter. How about just looking at your plant and
27:21
Speaker 2: being like, is it growing or not? Is it dying, leaves, wilting,
27:28
Speaker 2: you know, things like that that If you've ever had
27:31
Speaker 2: plants or you know, anything, you you're kind of like, oh,
27:34
Speaker 2: like maybe I should pay attention to this and see,
27:36
Speaker 2: you know, how it's doing.
27:38
Speaker 3: Why do you need an.
27:39
Speaker 2: App to tell you, hey, it doesn't have you know,
27:42
Speaker 2: enough water or something. Just look at it and tell.
27:44
Speaker 5: What's the one on this list that as the most
27:46
Speaker 5: potential to actually like be of use.
27:49
Speaker 2: That's a good question.
27:49
Speaker 5: I would say This porch pire or one is pretty interesting.
27:57
Speaker 3: It's pretty much a locker.
27:58
Speaker 2: Yeah, so it's it's it's a locker that sits outside
28:02
Speaker 2: and basically you give a password that allows delivery drivers
28:06
Speaker 2: to drop off packages into it so no one can
28:11
Speaker 2: steal them. Not can't people still take the locker depends
28:15
Speaker 2: how heavy it is, but yeah, I can't imagine it's
28:19
Speaker 2: like that heavy.
28:20
Speaker 6: That's a big commitment, though it is.
28:22
Speaker 2: I mean, look, then you're talking about okay, you got
28:23
Speaker 2: to like saw the thing open or break it open.
28:26
Speaker 3: I guess.
28:26
Speaker 2: So, Yeah, probably dissuades people who just you know, would
28:30
Speaker 2: grab a package three hundred bucks. Yeah, I could see
28:34
Speaker 2: it having some use.
28:36
Speaker 4: Yeah, I feel like there's competitors. There's other companies that
28:39
Speaker 4: do that too, But yeah, I would agree. Of the
28:41
Speaker 4: list in terms of what's viable for use, that's probably
28:44
Speaker 4: the one that I would point to the most. I
28:47
Speaker 4: can't really you know, the cooling Cat is tempting to
28:50
Speaker 4: name as the most promising.
28:52
Speaker 2: So this, I'll be honest might be the dumbest smart
28:58
Speaker 2: thing I've ever seen. I say that like with with affection.
29:04
Speaker 3: Actually it sounds really dumb.
29:06
Speaker 2: So it's it's this little like cat sculpture type thing
29:10
Speaker 2: that goes over the lip of your mug or plate
29:13
Speaker 2: and it blows onto your food or drink.
29:17
Speaker 6: Because you're not able to.
29:20
Speaker 2: Honestly, for the kids, this would be a home run.
29:22
Speaker 2: So here's kids would love right, Like, this is the thing.
29:24
Speaker 2: I'm not saying for me, but my kids would think
29:27
Speaker 2: it's so cool to have like this little cat just
29:29
Speaker 2: blowing onto their food. They would name it, they pretend
29:33
Speaker 2: to feed it, like.
29:34
Speaker 6: Yeah, it's for kids only.
29:37
Speaker 2: Oh definitely, this would be a big hit with my
29:39
Speaker 2: kids and would save me the hassle of having to
29:41
Speaker 2: do it myself. Devin and the menute it's still hot.
29:46
Speaker 2: It's twenty five dollars, like whatever, you know. I kind
29:52
Speaker 2: of look at this and yeah, it's it's kind of
29:55
Speaker 2: stupid in My first initial reaction was to just deride
29:58
Speaker 2: it mercilessly.
30:00
Speaker 3: But I don't know, I think there might be actually a.
30:02
Speaker 6: Place to go. This one good stocking stuff.
30:04
Speaker 2: It's twenty five bucks, not three thousand, like a lawnmower
30:07
Speaker 2: with your kids. Hot cocoa, this this would be good
30:10
Speaker 2: with the kids.
30:10
Speaker 6: Oh yea yeah, my kids have to have lukewarm coco.
30:13
Speaker 4: Yeah yeah, they're no. Not about hot cocoa in my
30:16
Speaker 4: house either.
30:17
Speaker 3: I'll be honest, I have to have lukewarm coco.
30:20
Speaker 6: Oh really, I don't.
30:22
Speaker 3: I don't deal well with heat in my mouth.
30:25
Speaker 5: I don't like hot beverages either piping hot. I'm the
30:28
Speaker 5: guy who has to like a microwave.
30:30
Speaker 3: That's my wife.
30:31
Speaker 2: My wife like, I know, same exact, whaling my throat.
30:35
Speaker 2: I hate the risk of burning my tongue. I'd much
30:37
Speaker 2: rather err on the side of it's been cold. But
30:39
Speaker 2: I can just throw it back quickly. She'll be like,
30:41
Speaker 2: how are you eating that? I'm like, it's the perfect temperature,
30:43
Speaker 2: seventy three degrees. Just cook the steak and leave it
30:46
Speaker 2: for an hour. I'll eat it then, Okay, soup on
30:50
Speaker 2: the stove. No, put it in the fridge. Let's take
30:53
Speaker 2: a quick break here. When we come back, time for
30:56
Speaker 2: some stack Roulette.
30:57
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31:34
Speaker 3: Oh what do you got for me? For stack Roulet?
31:36
Speaker 4: The US Surgeon General is new push to warn consumers
31:39
Speaker 4: about the link between drinking and cancer. Is a tough
31:42
Speaker 4: time for restaurants out there that really are are predicated
31:46
Speaker 4: on driving most of their revenue from alcohol sales. We
31:49
Speaker 4: saw sales at restaurants between November of twenty twenty three
31:55
Speaker 4: and November of twenty twenty four dip by one point
31:58
Speaker 4: seven percent. There's been so much turmoil in terms of
32:01
Speaker 4: the rest on industry. I'm not saying necessarily that this
32:05
Speaker 4: surgeon General is called Arms is going to, you know,
32:09
Speaker 4: be the nail and the coffin for them by any means,
32:12
Speaker 4: but certainly it is a surprising recent twist that has
32:17
Speaker 4: come up that they'll have to deal with. Come forward here.
32:20
Speaker 2: I guess I'm not sure on this piece if there's
32:26
Speaker 2: if there's going to be a clear shift in behavior
32:29
Speaker 2: as a result of this. And I guess what I
32:31
Speaker 2: mean is, Tucker, I believe you've had a drink or two. Yes,
32:36
Speaker 2: not before the show, but I could tell this morning.
32:40
Speaker 2: I could tell the way you're running the Yeah, Paul. Likewise,
32:44
Speaker 2: you've had a cold, frosty adult beverage once or twice. True,
32:47
Speaker 2: I have as well, all three of us, I think
32:50
Speaker 2: know that drinking is not really the best for you
32:52
Speaker 2: from a long term health perspective, absolutely, and I generally
32:56
Speaker 2: think that absent like a personal health scare that forces
32:59
Speaker 2: you to change your behavior, you kind of just say, look,
33:03
Speaker 2: this is a risk that I am willing to take,
33:06
Speaker 2: and I'm okay with this obviously, whenever you get, whenever
33:09
Speaker 2: you might have, you know, some type of health scare.
33:12
Speaker 2: What be it, you know, something liver related, cancer related,
33:14
Speaker 2: whatever it is. Those are things that often force people
33:17
Speaker 2: to change, you know, their behavior as it resorts as
33:19
Speaker 2: it reflects on, you know, drinking. But I'm just not
33:23
Speaker 2: sure that a Surgeon General warning is going to change that,
33:28
Speaker 2: because I think anyone who's grown up in the last
33:31
Speaker 2: thirty forty years has not been doing this in a
33:34
Speaker 2: vacuum anyways. It's no one's been sitting there being like, wow,
33:38
Speaker 2: this is good for me, Like no, you feel your
33:40
Speaker 2: body the next day like, probably isn't good for me,
33:42
Speaker 2: Like this is probably something bad. So I'm just not
33:46
Speaker 2: sure how much this will impact, you know, overall alcohol sales,
33:51
Speaker 2: especially at restaurants. I did learn something fantastic that I
33:54
Speaker 2: had never heard before in this piece, the term California sober.
33:58
Speaker 2: Yeah you only smoke.
34:00
Speaker 3: I didn't know that. I never heard that before. No,
34:02
Speaker 3: I've never heard that before.
34:03
Speaker 2: Plenty apparently refers to someone who only smokes marijuana and
34:07
Speaker 2: doesn't drink their California sober So that's uh.
34:10
Speaker 6: That's pretty well known.
34:11
Speaker 2: I thought you No, I'm a loser tucker like this,
34:17
Speaker 2: I got no idea. I want to talk a little
34:19
Speaker 2: bit about this piece from the New York Times about
34:22
Speaker 2: Movie Pass. Movie Pass, if you remember, is the service
34:26
Speaker 2: that promised you like unlimited movies. I think you go
34:30
Speaker 2: see like a movie a day and pay was it
34:33
Speaker 2: like ten dollars or fifteen dollars and the month and
34:36
Speaker 2: you can see unlimited movies and Barry at one point,
34:39
Speaker 2: like you make money. Barry went and got one of
34:42
Speaker 2: these subscriptions and actually started going to see like a
34:45
Speaker 2: movie a day. Yeah, and they went out of business
34:47
Speaker 2: like shortly thereafter.
34:48
Speaker 6: So you would come in at each day and be like, yeah,
34:50
Speaker 6: I saw this yesterday. I saw that.
34:52
Speaker 2: It was like yeah the day, yeah, He's like every
34:53
Speaker 2: night he was going to a new movie. I'm like, Barry,
34:56
Speaker 2: this is not sustainable. But anyways, the former seat of
35:00
Speaker 2: Movie Past, Theodore Farnsworth, great name by the way, pled
35:04
Speaker 2: guilty to securities fraud yesterday, and so he is going
35:09
Speaker 2: to be facing a maximum of twenty years in prison
35:13
Speaker 2: for securities fraud relating to movie Pass. Basically, I'll quote here,
35:16
Speaker 2: he tried to inflate its stock price and took millions
35:18
Speaker 2: of dollars from the company for himself, according to prosecutors
35:22
Speaker 2: and court records.
35:23
Speaker 3: So he is going to.
35:25
Speaker 2: Be spending some time in jail because it seems like
35:28
Speaker 2: he did some things you're just not allowed to do
35:30
Speaker 2: when you were the CEO of the company.
35:33
Speaker 4: Yeah, three million people signed up and took advantage for it,
35:35
Speaker 4: and it was nine ninety five a month in terms
35:38
Speaker 4: of the costs for the subscription model.
35:41
Speaker 2: That can we talk Can we talk about just one
35:44
Speaker 2: other thing, just unrelated note, like obviously, look, you can't
35:49
Speaker 2: just have people pay nine to ninety five a month
35:52
Speaker 2: and then go see unlimited movies because movie Pass ultimately
35:56
Speaker 2: was still paying for the tickets. This is something that
36:01
Speaker 2: I'm gonna now relate to the insurance industry, which you're
36:03
Speaker 2: gonna be like, how and why are you doing this?
36:06
Speaker 2: But I think part of the reason why we are
36:08
Speaker 2: seeing insurance premiums moving the way that we are is
36:12
Speaker 2: because people are using insurance differently now than they used to,
36:15
Speaker 2: and specifically, like I've had a couple questions from friends
36:18
Speaker 2: where they'll, you know, they'll be like, hey, like, I
36:21
Speaker 2: gotten a fender bender and my deductible's five hundred. You know,
36:24
Speaker 2: the body shop says will cost like a couple thousand
36:26
Speaker 2: to repair.
36:27
Speaker 3: What should I do? Like, how do I handle it?
36:30
Speaker 2: And I kind of look at and I go My
36:31
Speaker 2: answer to them is like, look, do what you want ultimately,
36:34
Speaker 2: because it's it's your money and whatever. But if every
36:38
Speaker 2: time people getting a minor fender bender they want their
36:41
Speaker 2: insurance to cover it for you know, again, these things
36:44
Speaker 2: are expensive now because the cost of labor and parts,
36:46
Speaker 2: Like it's you have a dented bumper and it's like
36:48
Speaker 2: fifteen hundred bucks right off the bat. You sit there
36:51
Speaker 2: and you go, Okay, if everyone's gonna do that, then
36:54
Speaker 2: how do you expect your insurance premiums to stay low?
36:57
Speaker 2: If everyone's filing those small claims and then you get
37:00
Speaker 2: the occasional big ones that come through. It's not like
37:03
Speaker 2: the money just gets created out of nowhere. Eventually, the
37:06
Speaker 2: insurance company has to have the money to pay these things.
37:09
Speaker 2: And so I think part of this is the way
37:12
Speaker 2: that people are using insurance is for smaller claims that
37:16
Speaker 2: are driving up the frequency of you know, claims processed
37:19
Speaker 2: by insurers, and that's causing them to have to raise
37:22
Speaker 2: rates as well, just because they're seeing a lot more
37:25
Speaker 2: claims than they used to on that type of stuff.
37:28
Speaker 4: The other takeaway I've had in the auto insurance space
37:31
Speaker 4: that I recognize for the higher premiums is bought a
37:34
Speaker 4: newer car and the amount of technology that's incorporated within
37:37
Speaker 4: this car in terms of sensors and monitors and things
37:40
Speaker 4: like that. It at least makes me understand to a
37:43
Speaker 4: degree why we've seen such premium increases because I just
37:46
Speaker 4: think about the censoring of lay monitoring and all the
37:48
Speaker 4: different stuff, all the cameras, and if you get into
37:51
Speaker 4: some sort of accident, all that stuff gets messed up
37:54
Speaker 4: and is expensive to replace, and it's also labor intensive.
37:56
Speaker 2: So I get that side too. Yeah, it's again, I
38:00
Speaker 2: I don't want to be like, hey, I'm on the
38:02
Speaker 2: side of insurance companies, but the money has to come
38:04
Speaker 2: from somewhere. You can't expect to pay, you know, five
38:08
Speaker 2: hundred dollars premiums and yet be able to resolve fifteen
38:11
Speaker 2: hundred dollars claims indefinitely.
38:13
Speaker 3: The money has to actually come from somewhere.
38:16
Speaker 2: Quick break for the rest of the day. We're back
38:17
Speaker 2: at it Tomorrow. Markets will be closed tomorrow. We're still
38:20
Speaker 2: here on the Financial Exchange