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Money Monday with Brian James · Brian Thomas

0:01
Speaker 1: It was six at fifty five KRC, the talk station.
0:03
Speaker 1: Brian Thomas wishing are a very happy Monday, and welcoming
0:06
Speaker 1: back to the fifty five KR same morning show. Man
0:07
Speaker 1: we get to talk to every Monday at this time Monday,
0:10
Speaker 1: Monday's Brian James. He's with all Worth Financial. He's a
0:13
Speaker 1: financial planner and he's gonna shed some light on Let's
0:15
Speaker 1: start out with what's next. Ron has really impacted it
0:18
Speaker 1: looked like the cost of everything. Brian James. Welcome back
0:20
Speaker 1: to the morning show. It's always great having you on
0:21
Speaker 1: the show.
0:22
Speaker 2: And a happy winter again.
0:24
Speaker 3: Apparently that was a rough one in by polar Our
0:29
Speaker 3: weather is bipolar, so just wait, just wait a minute,
0:33
Speaker 3: it'll change. Looking forward to summer this No, I'm not
0:35
Speaker 3: after talking with Ken Cober this morning, the FOP president
0:38
Speaker 3: who's just promised even more violence coming because it gets
0:41
Speaker 3: warm out. Yeah there's an excuse. Yeah, and he went,
0:44
Speaker 3: or drag you down that road, Brian James. Let us
0:46
Speaker 3: start with you Iran war and the multiple the various
0:50
Speaker 3: areas that's impacting us, beginning with discretionary spending. Price of
0:55
Speaker 3: gasoline has gone up. If you haven't noticed, Brian, Apparently
0:59
Speaker 3: more than thirty two percent surge just in a few weeks.
1:02
Speaker 3: It continues to go up, although I have to quickly
1:04
Speaker 3: point out to all those pulling their hair out, thinking
1:06
Speaker 3: this is just the end of the world. Twenty twenty two,
1:09
Speaker 3: the national average, and that includes you know, Ohio and
1:12
Speaker 3: lower price gasoline states, five bucks was the national average,
1:18
Speaker 3: and it was pretty well into the fours up to
1:20
Speaker 3: five almost the whole calendar year. So it wasn't that
1:24
Speaker 3: long ago we were dealing with much more expensive gasoline prices.
1:27
Speaker 3: But this, of course the direct content consequence of going
1:29
Speaker 3: to war with Iran, so starting there and had impact
1:32
Speaker 3: on discretionary spending.
1:34
Speaker 2: Yeah.
1:34
Speaker 3: So I think the reason that this is a little
1:37
Speaker 3: bit more impactful is because this is a conscious decision
1:40
Speaker 3: that our leadership has made to enter into this conflict.
1:43
Speaker 3: And it's not exactly rocket science to notice that if
1:47
Speaker 3: you're gonna if you're going to enter into a war,
1:49
Speaker 3: cause any kind of disruption the Middle East, oil prices
1:51
Speaker 3: are going up.
1:52
Speaker 1: Well yeah, but I mean I have to point out,
1:53
Speaker 1: and I do it all the time, it's a conscious
1:55
Speaker 1: decision to say we need to quit, we need to
1:57
Speaker 1: get get rid of our exhalation our plant food from
1:59
Speaker 1: the environment man. And of course when you implement laws
2:01
Speaker 1: and regulations. Look at California, for example, it didn't have
2:04
Speaker 1: to be five dollars gasoline the norm out there. They
2:06
Speaker 1: did that to themselves. So you can have a war,
2:08
Speaker 1: or you can implement policies that force a price of
2:10
Speaker 1: gas up.
2:11
Speaker 2: Sure, and that I think is the baseline.
2:14
Speaker 3: Right. It's always more expensive to buy gas in California.
2:17
Speaker 3: So what I'm seeing pictures of and I think these
2:20
Speaker 3: are slightly one offs. I don't want to say that
2:21
Speaker 3: this is the this is reality, but I'm seeing seven
2:23
Speaker 3: and eight dollars a gallon prices in certain spots of California.
2:28
Speaker 2: Is definitely not everywhere.
2:28
Speaker 3: And I saw all the states overrun, but everything has
2:31
Speaker 3: increased pretty much proportionally. You know they were already expensive,
2:34
Speaker 3: now they're more expensive. Well guess what, We're more expensive
2:36
Speaker 3: here in Ohio too. I do remember, you know, I
2:39
Speaker 3: remember it peaking close to five dollars around here. Five
2:44
Speaker 3: dollars is always the boogeyman whenever that happens, we talk
2:46
Speaker 3: about five dollars gas, and I don't think it happens
2:48
Speaker 3: all where we ever get to that point where it
2:50
Speaker 3: really hits five and stays there.
2:52
Speaker 2: To me, it's four.
2:53
Speaker 3: We hit four and sit there for a while. That's
2:54
Speaker 3: when I know around here it's trickling through. And that's
2:57
Speaker 3: what I'm seeing right now.
2:58
Speaker 2: Of course.
2:58
Speaker 1: Well, and I of course remember four plus a lot
3:01
Speaker 1: because I sadly had to pump premium into my car.
3:03
Speaker 1: So there was a long period of time when I
3:05
Speaker 1: was paying you know, four to twenty five to four
3:07
Speaker 1: fifty four dollars to fifty cents a gallon. I felt
3:08
Speaker 1: like I lived in California. But yeah, why did I
3:11
Speaker 1: buy this car?
3:11
Speaker 2: I know, don't be nice.
3:13
Speaker 1: I know, I know, I know. Don't get me started.
3:15
Speaker 1: We could talk a long time on that.
3:16
Speaker 2: I have. I have one two. I get it.
3:17
Speaker 1: US Energy Information Administrations EIA dot gov is where I
3:21
Speaker 1: got the annual figure from nineteen ninety three all the
3:25
Speaker 1: way to this year in terms of the average national average.
3:27
Speaker 2: So that's where that figure came from. Sure, sure, yeah,
3:29
Speaker 2: And I don't mean to question.
3:30
Speaker 3: I'm just talking about the you know, just just just
3:32
Speaker 3: the overall feeling. Yeah, remembering when people freak out, that's
3:36
Speaker 3: basically I'm on the.
3:37
Speaker 2: Receiving end of that.
3:38
Speaker 3: Is when my phone rings and people were saying five,
3:40
Speaker 3: it's gonna be five dollars, gonna be five dollars, and.
3:41
Speaker 2: I remember a couple instances, but yeah, my mind, it's four.
3:44
Speaker 1: It's it definitely can tell it. There's like a wind
3:46
Speaker 1: in the air, like, oh my god, people are pissed off. Oh,
3:48
Speaker 1: here it is. Here's the reason, which of course is
3:50
Speaker 1: going to the first thing to go in anybody's budget
3:53
Speaker 1: except for a government's budget, is the quote unquote nice
3:55
Speaker 1: to have purchases, the discretionary spending. And that's a sizable
3:58
Speaker 1: part of the economy because I would discretionary spending like
4:01
Speaker 1: for example, going out to dinner, Oh for sure.
4:04
Speaker 3: Yeah, it's it's going to cause the you know, the
4:06
Speaker 3: the reduction in some other things. And that's why the
4:08
Speaker 3: market has been freaking out a little bit, and ironically.
4:10
Speaker 2: Why it's up today. So futures and it's.
4:13
Speaker 3: Not all it's not believing, it's not about what the
4:15
Speaker 3: market's going to do today. But that's how we can
4:17
Speaker 3: we can get a feeling for what is the overall
4:19
Speaker 3: opinion of what mood are we in. Futures are up
4:22
Speaker 3: one and a half to two percent. Look at it, right,
4:24
Speaker 3: it's crazy.
4:25
Speaker 2: Well, and I think it's.
4:26
Speaker 3: Driven by nothing more than Trump making a few comments
4:28
Speaker 3: said maybe we're going to back off here just a
4:29
Speaker 3: little bit. We're maybe not going to attack the you know,
4:31
Speaker 3: the civilian infrastructure sites, and so that the market instantly
4:35
Speaker 3: reacts and it's looking for the end of the conflict.
4:38
Speaker 3: That's what the market is going always going to anticipate
4:40
Speaker 3: that this might be the end.
4:41
Speaker 2: Well, Nope, it's not what Maybe it's just what. Nope,
4:43
Speaker 2: that wasn't it either? Whoop? Here it is.
4:46
Speaker 3: And the problem is, you know, that's that's why we
4:48
Speaker 3: always encourage people not to try to time it. Sooner
4:51
Speaker 3: or later, it's going to get it right, but until then,
4:53
Speaker 3: there's going to be a heck of a lot of
4:54
Speaker 3: head fakes. And that's where we're at right now. But regardless,
4:57
Speaker 3: that's not really what we're talking about today. We're talking
4:59
Speaker 3: about the the over impact of inflation on the pocketbook.
5:02
Speaker 3: And so, yes, there are concerns that if I got
5:04
Speaker 3: to spend more at the gas pump, I'm going to
5:05
Speaker 3: eat out less, I'm going to you know, I'm going
5:08
Speaker 3: to do as less of these discretionary things. And not
5:11
Speaker 3: to mention, this is also filtering through This is really
5:13
Speaker 3: what the headline is. It's filtering through to electricity, and
5:16
Speaker 3: that's not something we.
5:17
Speaker 2: Get to choose.
5:18
Speaker 3: I decide, hey guys, we're going to use twenty percent
5:20
Speaker 3: less electricity this month.
5:22
Speaker 2: Buckle down.
5:22
Speaker 1: Yeah, And that was a topic we're going to get
5:24
Speaker 1: to because I saw you have a separate article referring
5:26
Speaker 1: to electricity builds are up six percent from last year,
5:29
Speaker 1: and I find that figure to be, well, in my world,
5:32
Speaker 1: a bit of an understatement, Brian. But before we get
5:35
Speaker 1: over that, your wheelhouse, of course is investment in retirement.
5:38
Speaker 1: The impact that this is going to have on our
5:40
Speaker 1: investment and retirement funds, This this global conflict we find
5:43
Speaker 1: ourselves in. I see nasdacs down what's almost seven percent
5:47
Speaker 1: for the year. Well, unless today jumps two points, I
5:50
Speaker 1: don't know. S and P's down about five for the year,
5:53
Speaker 1: and as well, the Dow is down about five for
5:55
Speaker 1: the year. So clearly it's whatever's out there is impacting
5:59
Speaker 1: our our our retirement.
6:00
Speaker 2: Plan for sure. And this is coming on the tail
6:04
Speaker 2: end too.
6:04
Speaker 3: There's a little bit of before the war started here,
6:07
Speaker 3: there was already kind of a little bit of suspicion
6:09
Speaker 3: there kind of always is after we have a ridiculous
6:11
Speaker 3: run up like we've had since twenty twenty two, where
6:14
Speaker 3: we had some again headfakes along the way. We had
6:16
Speaker 3: a panic about the tariffs back in April and the
6:18
Speaker 3: market went down almost twenty percent. That's almost a year
6:20
Speaker 3: ago now, so April twenty five I'm referring to. And
6:23
Speaker 3: then we got over that, we calmed down and moved
6:25
Speaker 3: on as we as we normally do, and.
6:27
Speaker 2: And cooler heads will prevail, they always do.
6:30
Speaker 3: Nobody benefits from permanently sinking the world into a global conflict, right,
6:35
Speaker 3: So I have to say that somebody is in President
6:37
Speaker 3: Trump's ear saying, hey, you know, we do have midterms
6:40
Speaker 3: this year, and at some point where we're going to
6:43
Speaker 3: need to make to show progress that this is this
6:45
Speaker 3: is a goal, or that we do have some level
6:47
Speaker 3: of restraint. We will make different decisions when the situation arises.
6:51
Speaker 3: That seems to be what has happened here, and the
6:53
Speaker 3: market is reacting very quickly. But sooner or later, this
6:56
Speaker 3: too shall pass and we'll get back to normal.
6:58
Speaker 1: Well, and I have to just enter act the odd,
7:02
Speaker 1: strange reality that we're all dealing with, finally waking up
7:05
Speaker 1: to the realization that twenty percent of the world's oil
7:08
Speaker 1: basically gas oil and even fertilized no thing goes through
7:11
Speaker 1: that twenty mile little tiny piece of waterway that Iran
7:14
Speaker 1: can disrupt. That it has been so devastating in such
7:18
Speaker 1: a short period of time for so many countries in
7:20
Speaker 1: the world, you would think that maybe they might step
7:22
Speaker 1: up and say, you know, well, if there is something
7:23
Speaker 1: we can do about that straight to Horror Moves, why
7:25
Speaker 1: don't we help out and open it up. I mean,
7:28
Speaker 1: it's the world against Iran right now, simply because of
7:30
Speaker 1: the economic reality and pain they've brought on us. And
7:32
Speaker 1: I know that we are partially culpable because we started.
7:36
Speaker 2: The war, but we wouldn't have it.
7:37
Speaker 1: It wasn't for Irani and Terrorists's discussion for another day,
7:39
Speaker 1: but it may change the dynamic globally in so far
7:42
Speaker 1: as people's perceptions of getting the straight of horror Mooves
7:44
Speaker 1: rack open.
7:45
Speaker 3: Yeah, I think there's a lot of truth to that,
7:47
Speaker 3: because obviously they don't think it's rocket science there either
7:50
Speaker 3: to say that that is definitely literally a bottleneck, quite
7:53
Speaker 3: literally the definition of a bottleneck.
7:54
Speaker 2: So let's treat it with care.
7:56
Speaker 3: But at the same time, that does give a RAN
7:58
Speaker 3: some leverage, as it has over the centuries, because they
8:02
Speaker 3: we they have something that we that the rest of
8:03
Speaker 3: the world needs, and so they can use it to
8:05
Speaker 3: push their their goals as well. This kind of goes
8:08
Speaker 3: back to a little bit. I do wish that this
8:10
Speaker 3: administration perhaps had pushed its goals with Europe a little differently.
8:15
Speaker 3: You know, could we have maybe not treated it like
8:17
Speaker 3: it was a fight in a high school playground and
8:19
Speaker 3: just kind of laid down the lock. Here's what we're
8:20
Speaker 3: gonna contribute to NATO and no more. And you guys
8:23
Speaker 3: need to pony up the rest of you know what
8:25
Speaker 3: you committed to do versus the approach we took, which
8:29
Speaker 3: was basically just to pull the rug.
8:30
Speaker 2: And take the ball and go home. Because now we're
8:32
Speaker 2: on the other end of it.
8:32
Speaker 3: It would be very nice, as you said, if everybody
8:34
Speaker 3: would realize that the straight OH hormones is important, not
8:37
Speaker 3: just the United States, everyone else. But unfortunately we blew
8:39
Speaker 3: some political people I think making headlines.
8:41
Speaker 1: Well, the point was well made. They need to be
8:43
Speaker 1: responsible for the rooms for themselves, right, Okay, yeah.
8:47
Speaker 3: No, that's no argument with that whatsoever. But now when
8:49
Speaker 3: we could use their help. Maybe we could have taken
8:52
Speaker 3: a different tact, all.
8:53
Speaker 1: Right, pivoting over to one other area. This might impact
8:55
Speaker 1: or might not, as the case may be, because I
8:57
Speaker 1: know Jerome Palell doesn't have any idea because he's not
9:00
Speaker 1: he can't read tea leaves and know what the future is.
9:03
Speaker 1: How this might impact mortgage rates. We were enjoying a
9:05
Speaker 1: little bit of reprieve from the north of six percent
9:07
Speaker 1: mortgage rates, but that moment in time gone now right.
9:11
Speaker 3: Well, potentially because hopefully we can get this result one
9:14
Speaker 3: way or another before this is permanent. So but of
9:17
Speaker 3: course we're seeing inflation obviously, and whenever we choke off
9:22
Speaker 3: that bottleneck, then of course supply goes down and the
9:24
Speaker 3: cost goes up, and then we get inflation. So mortgage
9:27
Speaker 3: rates are rising six point one percent on a thirty
9:30
Speaker 3: year up to about six point four percent just over
9:32
Speaker 3: the past couple of weeks. And again that's coming from
9:35
Speaker 3: rising treasure yields and inflation expectations. This is the market
9:38
Speaker 3: driving it, not fed policy. The Federal Reserve did not
9:41
Speaker 3: raise rates. It's just the market pushing bonds in a
9:44
Speaker 3: different direction that has that result.
9:46
Speaker 2: So, and this is.
9:47
Speaker 3: Coming directly from of course, we're seeing gas prices up
9:49
Speaker 3: about twenty two percent a month, four bucks a gown
9:52
Speaker 3: a lot of places, and a lot more than that elsewhere.
9:55
Speaker 3: And again all coming back to this somewhat self inflicted
10:00
Speaker 3: the chosen war here, not to say it doesn't have
10:03
Speaker 3: a place in our overall foreign policy, but at the
10:05
Speaker 3: end of the day, we can't pretend that it wasn't
10:07
Speaker 3: going to have an impact. All right, this shouldn't surprise anybody.
10:10
Speaker 1: Well, I mean you mentioned electricity earlier. I kind of
10:13
Speaker 1: stop you from moving forward to it because I want
10:14
Speaker 1: to talk a little bit more about it, because the
10:16
Speaker 1: electricity jump was there before we invaded Iran. I mean,
10:21
Speaker 1: I've been struggling with the last couple of months worth
10:22
Speaker 1: of electricity and gas bills, although gas is such a
10:25
Speaker 1: fraction of my bill that I don't even really look
10:27
Speaker 1: at it, but electricity has gone through the room. Is
10:30
Speaker 1: there a reason for that? Did they change the way
10:32
Speaker 1: billing is done? Or is that what we're dealing with
10:33
Speaker 1: because of oh, I don't know, global warming or something
10:36
Speaker 1: more with Brian James money Monday coming up next to
10:39
Speaker 1: eight sixteen. Right now, If I do you have k
10:40
Speaker 1: CEDE talk station.
10:42
Speaker 2: The events of the day's talk station.
10:46
Speaker 1: Brian Thomas with Brian James Money Monday's Brian James get
10:49
Speaker 1: some good information for him. Worried about your financial future?
10:53
Speaker 1: That's why everybody should really get a financial planner. I
10:55
Speaker 1: have one, and I'm glad I do. Taken the weight
10:57
Speaker 1: off my shoulders anyway. Pivoting over to electric prices, I
11:00
Speaker 1: have no idea what in God's green earth happened to
11:02
Speaker 1: my electric bill there, Brian James. But beginning with the
11:05
Speaker 1: first bill of the month I got it in January.
11:09
Speaker 1: I think if I had to guess, I would say
11:12
Speaker 1: it was at least one hundred, if not more like
11:15
Speaker 1: one hundred and fifty bucks more than the highest bill
11:18
Speaker 1: I ever got from Duke Energy. And my mouth literally
11:21
Speaker 1: fell open, Like what the ever loving FCC non compliant
11:25
Speaker 1: word came out of my mouth at the time, and
11:27
Speaker 1: I thought, maybe this is just an abarition. But no,
11:30
Speaker 1: when the February's bill came or got it in late February,
11:32
Speaker 1: same damn thing almost identical. I just can't make heads
11:36
Speaker 1: or tail out of it. A lot more than the
11:38
Speaker 1: six percent increase which we apparently are experiencing on a
11:41
Speaker 1: national average, what is with electric Brian James.
11:44
Speaker 3: Well, I think the big headline behind this is the
11:47
Speaker 3: things that we are building to support what we are becoming.
11:50
Speaker 3: And a lot of this is AI and data center.
11:52
Speaker 3: So data centers were maybe just a few years ago,
11:54
Speaker 3: probably about four percent of US power usage. Now they're
11:57
Speaker 3: projected to reach up to ten to twelve percent eight
12:01
Speaker 3: and so we're somewhere in the middle of that now.
12:03
Speaker 3: And these individual AI facilities can consume up to, you know,
12:06
Speaker 3: one hundred megawatts more than that, which doesn't mean a
12:09
Speaker 3: lot to you know, that's just a number, but that
12:11
Speaker 3: is basically all of Dayton, a couple of Hamilton's, maybe
12:14
Speaker 3: a middletown thrown in for good, for good measure, that's
12:16
Speaker 3: how much electricity these larger facilities can consume. And there
12:19
Speaker 3: are some of these things being built in the state
12:21
Speaker 3: of Ohio, a lot of yeah, everywhere, and there's so
12:24
Speaker 3: matter of fact, what what I'm also seeing springing up
12:26
Speaker 3: is signs that say no data centers. There's some somehow
12:30
Speaker 3: that's proportional.
12:31
Speaker 2: It seems to be well, if.
12:32
Speaker 1: The data centers brought their own dam electricity with them
12:35
Speaker 1: and covered their own you know, nut if I can
12:37
Speaker 1: use that term, then we wouldn't have a problem in
12:39
Speaker 1: fact with small modular reactors, and everybody knows that I'm
12:41
Speaker 1: on that bandwagon. Streamline the regulatory process, streamline the design
12:46
Speaker 1: process where one size literally can fit all like they
12:49
Speaker 1: have with our military ships. We could, we could manage this.
12:54
Speaker 1: It's just it's going to take time, and it's going
12:55
Speaker 1: to have to It's going to take a change in
12:58
Speaker 1: mind over nuclear but also a reduction in a regulatory
13:00
Speaker 1: burden that comes with it.
13:02
Speaker 3: It's going to take some courage in standing up to
13:05
Speaker 3: the profit centers that that these that these things are
13:08
Speaker 3: because at the end of the day, that that is
13:10
Speaker 3: what we have built. Over a quarter of a millennium,
13:13
Speaker 3: two hundred and fifty years, we have been building a
13:15
Speaker 3: country that is the best place in history to ever
13:18
Speaker 3: have built a business. That's how we make decisions. We
13:20
Speaker 3: want to we tend to want to remove we ebb
13:22
Speaker 3: and flow, but we tend to face more make more
13:26
Speaker 3: decisions that are around deregulation and allowing these things to happen. Therefore,
13:30
Speaker 3: there are no rules in place to say if you
13:31
Speaker 3: want to suck on the edge of the power grid
13:33
Speaker 3: this much, then you can you can pretty much do
13:35
Speaker 3: that and there isn't a whole lot standing in the way,
13:37
Speaker 3: which means we need our political leadership, good, bad or
13:39
Speaker 3: indifferent to stand up and say you know what, no,
13:42
Speaker 3: this is going to be more expensive and expensive than you.
13:44
Speaker 2: Thought it would.
13:45
Speaker 3: We have we do have rules, some rules in place.
13:47
Speaker 3: So let's talk a little bit, Brian about why why
13:49
Speaker 3: is this happening? Because you know some people out there going, well,
13:51
Speaker 3: how can they do this? Because electricity rates are regulated,
13:54
Speaker 3: aren't they There has to be an agreement from the
13:55
Speaker 3: state of Ohio for in PUCO to make these decision
14:00
Speaker 3: to change those rates. So some of that is cost recovery.
14:03
Speaker 3: You know, there's there's fuel in it, there's the infrastructure
14:05
Speaker 3: to move the fuel, maintenance and operations and all that
14:07
Speaker 3: kind of thing. But there's also utilities are allowed to
14:10
Speaker 3: earn a set rate of return. So utilities are somewhere
14:12
Speaker 3: between a public entity and a private private entity because
14:16
Speaker 3: there is profit involved. However, they are supported and we
14:19
Speaker 3: can't have you know, ten utilities competing for business. You know,
14:23
Speaker 3: in terms of the generation, it's the distribution side where
14:25
Speaker 3: they can do that. So the fuel costs get passed
14:28
Speaker 3: through the infrastructure spending gets all baked in, and then
14:30
Speaker 3: of course we have demand growth just like any other business.
14:33
Speaker 3: And then in capacity markets, utilities pay for this backup
14:36
Speaker 3: power availability, and those costs have surged a lot.
14:39
Speaker 2: Guess what that gets passed through to consumers.
14:41
Speaker 3: So yes, rates are regulated, but there's a lot of
14:44
Speaker 3: other things built into that rate that are not.
14:46
Speaker 1: Well. Let's pause, bring Brian Jat back, because you know,
14:49
Speaker 1: one thing I find really really really important about my
14:52
Speaker 1: financial planner relationship with me is because that person has
14:55
Speaker 1: a fiduciary obligation to me, which must means that he
14:59
Speaker 1: must keep my interes in the forefront of any decision making.
15:02
Speaker 1: So I'm a little concerned. Normally I'm not when we
15:05
Speaker 1: get rid of rules, I'm a little concerned about this one.
15:07
Speaker 1: Brian's gonna explain this Biden error rule that's just been
15:11
Speaker 1: pulled by the Department of Labor. That'll happen next. Don't
15:13
Speaker 1: cool Way fifty five KRC WHAT Talk Station, Hey twenty
15:19
Speaker 1: nine to fifty five KRC DE Talk Station Brian twmins
15:21
Speaker 1: with Brian James doing Money Money Especial edition on the
15:23
Speaker 1: fifty five Carsse Morning Show. Late in the day, but
15:25
Speaker 1: that's still welcome. Next, we're gonna hear from Ihart Media
15:28
Speaker 1: aviation expert Jay Ratliffe on yes, the chaos at the airports.
15:32
Speaker 1: We got LaGuardia closed because of a collision, but we
15:34
Speaker 1: also have the reality of the TSA agents aren't showing
15:36
Speaker 1: up because they're not getting paid checking no one. Pivoting
15:39
Speaker 1: back over to Brian James, and I like your sentiment
15:41
Speaker 1: on that little plot you did about you know, trying
15:43
Speaker 1: to come come to some point where you actually start
15:45
Speaker 1: spending your money if you've saved your entire life. I
15:48
Speaker 1: thought that was a refreshing point to make there, Brian James,
15:51
Speaker 1: because you know, spending money always freaks me out.
15:55
Speaker 3: So yeah, that's that's the west side of the other
15:58
Speaker 3: conservative west side coming out in I have to fight
16:00
Speaker 3: it myself. But yeah, no, I'd say this all the time,
16:02
Speaker 3: but I spend like ninety plus percent of the time
16:05
Speaker 3: sitting at my table in my office with clients begging
16:07
Speaker 3: them to spend their own money. It's my job to
16:09
Speaker 3: shine a light on how okay they actually are. And
16:12
Speaker 3: most people are okay, but they won't allow themselves to
16:15
Speaker 3: believe it. That's the same voice in the back of
16:17
Speaker 3: their heads that put them in that position. But you
16:19
Speaker 3: have to shout it down eventually so that you can
16:21
Speaker 3: live a fulfilling life.
16:22
Speaker 1: Well, you know, and my kids aren't listening because I
16:24
Speaker 1: don't think they ever do. But just the whole idea
16:27
Speaker 1: if we ever get a grandchild, Brian James, you know,
16:29
Speaker 1: we got a pile of money sitting out back waiting
16:32
Speaker 1: to splurge on grandchildren. That's going to be a retirement
16:35
Speaker 1: project for my wife and me. So someone better get
16:38
Speaker 1: off the pot pivoting over. We got this fiduciary dint hint.
16:42
Speaker 1: I love the fiduciary obligation that my financial planner has
16:47
Speaker 1: to me.
16:47
Speaker 2: Brian.
16:48
Speaker 1: I take confidence in that because there are a lot
16:50
Speaker 1: of financial planners out there that don't do a fee
16:52
Speaker 1: base thing. They go out and they make money selling
16:54
Speaker 1: you things that might not be in your best financial
16:57
Speaker 1: interest down the road, which means we're not following a
16:58
Speaker 1: fiduciary obligation out for their own pockets as opposed to
17:02
Speaker 1: those that they're supposed to serve. So what is with
17:05
Speaker 1: this Labor Department rule that has struck down the advice
17:10
Speaker 1: that classify I'm sorry that financial professionals and are fiduciaries
17:14
Speaker 1: on some level. What's with this, Well, I mean, unfortunately,
17:18
Speaker 1: I think this is just political. So the word fiduciary
17:21
Speaker 1: basically means, just for those who may not be familiar,
17:23
Speaker 1: basically means that an advisor has to be able to
17:25
Speaker 1: prove in a court of law that any advice they
17:27
Speaker 1: gave or moves they made in your portfolio that kind
17:30
Speaker 1: of thing was done for your best interest and not
17:33
Speaker 1: for their So that's what it means at a very
17:34
Speaker 1: high level.
17:35
Speaker 2: But a lot of what is impacted.
17:37
Speaker 3: By it is the fact that if that's the case,
17:40
Speaker 3: then they can't get compensated based off of you purchasing
17:43
Speaker 3: or not purchasing a certain product. So you know, commissioned,
17:46
Speaker 3: typed things are usually kind of in the crosshairs there. Yeah,
17:49
Speaker 3: So there was a rule came up in the Biden
17:52
Speaker 3: era that basically was targeted directly at four oh one
17:56
Speaker 3: K and retirement plan rollovers into iras and basic was
18:00
Speaker 3: forcing people to forcing brokers, insurance agents and advisors everybody
18:04
Speaker 3: to act as a fiduciary. In this case, there's a
18:07
Speaker 3: difference between being a fiduciary advisor and being a salesperson.
18:10
Speaker 3: Salespeople have nothing wrong with it, but it's just a
18:13
Speaker 3: different environment. There are fewer rules versus if you're a fiduciary,
18:16
Speaker 3: a lot more documentation, a lot more paperwork, those kinds
18:18
Speaker 3: of things. And this was going to force the people
18:21
Speaker 3: who were only on the sales side of this to
18:23
Speaker 3: start to act as a fiduciary. It was in place,
18:27
Speaker 3: but it has now been struck down by a federal
18:29
Speaker 3: court in Texas, really taking care of it before it
18:33
Speaker 3: truly ever took full effect. Now I can say my
18:35
Speaker 3: firm would put this in place years ago. We've been
18:37
Speaker 3: a fiduciary twenty four to seven for as long as
18:39
Speaker 3: we've existed, pretty much, and we actually put different processes
18:43
Speaker 3: in place to document that we are having these discussions
18:46
Speaker 3: and making sure people understand. And that's an extra piece
18:48
Speaker 3: of paper you got to sign when there's a rollover
18:50
Speaker 3: mix and all this sort of stuff. But so that
18:52
Speaker 3: has been any fiduciary really worth their salt. This was
18:56
Speaker 3: never a thing because they probably told you on day one, Yes,
18:58
Speaker 3: this is what we are, and this is.
18:59
Speaker 2: What we do.
19:00
Speaker 3: Here's our fees, and here's the services we provide, so
19:03
Speaker 3: on and so forth. So for the ones who were
19:05
Speaker 3: playing by the rules. It was just extra work to
19:07
Speaker 3: begin with. For the ones who weren't, it was something
19:10
Speaker 3: that they resisted, and, like I said a little bit earlier,
19:13
Speaker 3: we have put in place in this country the best
19:15
Speaker 3: mechanism to be profitable and efficient. Ever, we lean towards
19:18
Speaker 3: the side of business first. I think this falls under
19:21
Speaker 3: that category, although I do believe consumers are now more
19:24
Speaker 3: exposed than they were before this was struck down.