Latest / WCHS Network Podcasts / 05-06-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial

Transcript

05-06-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial · WCHS Network Podcasts

0:00
Unlock your dream property with Meeks Realty Group, where Rich the realtor makes real
0:04
estate dreams a reality, whether it's residential or commercial. We've got Charleston to
0:08
Huntington covered. Your key to exceptional real estate experience is start here Meeks Realtygroup.
0:13
Contact us at Meeks dot us. The views and opinions expressed on this
0:17
program do not necessarily reflect the views and opinions of five eight WCCHS its employees
0:23
or WVRC Media. This is Retire Right Radio, a weekly show from John
0:29
Verdet at Fourth Avenue Financial that aims to answer your questions about financial planning,
0:34
investing, and how to retire right. Fourth Avenue Financial is located in downtown
0:39
Charleston at one seventy Court Street. More information online at Fourth Avenue Financial dot
0:44
com. Join the conversation by calling three oh four three four five fifty eight
0:49
fifty eight or text three oh four nine three five fifty oh eight. On
0:55
Retire Right Radio, Let's go live to the studio with host Dale Cooper and
0:59
John Verdett from Fourth Avenue Financial. Concivities and replies a good morning too,
1:03
you're listening to We're sorry I write radio On this Monday morning in the month
1:07
of May, in the year of twenty twenty four. I'm Delle Cooper on
1:11
five ad w c HS, the Voice of Charleston. In studio with me
1:15
this morning is John Burdett from Fourth Avenue Financial. John, Good morning.
1:17
How you doing this morning. I'm doing great. Did you have a good
1:19
weekend? Oh? It was a busy one. I was actually busting rocks
1:23
and that was an expression. It wasn't on a prison chaining game. But
1:29
you were doing a lot of work this weekend, right, Yeah, yeah,
1:32
Yeah, And my wife's new news store that she's opening up. They
1:36
built things different back in the day. This building is I think it was
1:41
built in the nineteen forties and he would have withstood a lot. It's all
1:46
block. There is something to be said. I've done a little bit of
1:52
preparing commercial properties and stuff. There is something to be said about the difference
1:55
between doing demo and a commercial property compared to a residential property. It does
1:59
tend to be things are heavier, bigger, you know, they're they're tied
2:02
in a lot differently, and things like that. I mean it's a big
2:05
job a lot of the time. Yeah, I mean, even in your
2:07
walls so you think, oh, that's just you know, a facade type
2:12
wall. I mean, well, let's build it out a block. Well.
2:16
The good the good news is is you have a you have a quality
2:20
uh, you have a quality building, quality building, and I don't have
2:23
to worry about going to hit the gym. Right. John is going to
2:30
be here for until nine o'clock, of course, and we can take your
2:32
phone calls anything to do with how you can retire right. You have some
2:35
questions for the market or investments, or how you can get ahead of a
2:38
deck curve, anything along those lines on how you can get a clear vision
2:40
into your future, into retirement and financial planning. John can help you out
2:45
this morning. Three zero four three four five fifty eight fifty eight. Three
2:46
zero four three four five fifty eight fifty eight. You can also text three
2:50
zero four non three five five zero zero eight. You can find out more
2:53
information about retire Right Radio and Fourth Avenue Financial online. It's fourth Avenue Financial
2:57
dot com. You spell out the whole thing Fourth Avenue Financial dot com.
3:00
You can look it up there and uh and find out more about the about
3:05
the business and about John who's on here every week at eight twenty four retire
3:08
Rate Radio. We've been obviously every week we h we start talking about the
3:14
market, where the UH where it left off the week previous, and we've
3:17
had some volatility recently. Last week things seemed to I think all the indices
3:22
finished the week up, So yeah, everything went up. I mean,
3:24
we had a great news last week. Less people got jobs. So it's
3:30
the weirdest thing in the world, right, It's like the old Seinfeld bizarro
3:32
world. I'm waiting for the political ad to come out. We've been waiting
3:36
with collective breaths held for years now for a slowing job market to indicate.
3:39
However, that indicates, in the reverse bizarro world that the economy is doing
3:44
better. And I'm waiting for the political ad once the jobs slow to an
3:46
appreciate the amount there's gonna be political plan. Jobs slow has got to an
3:51
all time it's gonna be like so insane. But with those numbers that that's
3:57
been a sticky number, and so it was finally it was kind of nice
4:00
to see maybe a little bit of breathing there as well, let a little
4:01
pressure off the UH, the interest rate play and the the inflation play.
4:09
Not only was the jobs growth down, I mean, it was still positive,
4:13
but it slowed down greatly. But wage growth also slowed down, which
4:17
there again feeds into consumer spending and the inflation numbers. So there's some hope
4:24
through those numbers. And I guess that's why the market is viewed it positively,
4:28
even though looking at the face you'd say, well, how's that good?
4:31
I guess the the the thing that that I've learned and doing this show,
4:34
and the thing you have to keep in mind all the levers and dominoes
4:38
that create our economy. Something that that seems like that would not be great
4:43
for consumer, Like what do you mean that wage growth is lowing? That's
4:46
terrible for me. I want my my wages to go up, But I
4:47
want you also want prices to stop going up, you know. I mean
4:50
there's a there's a balance that plays in that, and I think that's the
4:54
word where it's trying to find the right balance. And and you know,
4:59
I think the the Federal Reserve folks, I think they think they have a
5:03
little more control and power than they actually do. There's just so many,
5:10
like you say, levers, so many decisions that are made daily throughout the
5:13
economy that you know, a handful of folks that on aboard, they're not
5:18
going to get all of that, and you can't control all of that.
5:20
I think I was listening to a podcast this weekend was talking about some of
5:24
the Federal Reserve maneuvers and different things like that, and some kind of comment
5:29
was made like they like to read tea leaves and then go back and tell
5:33
you what it meant to. Yeah. Right, it's like, trust us,
5:41
we know what's going to happen. Then you go back and say,
5:42
well, if you look at it this way, we were actually right on
5:45
the way that this all fell. So it's all very complicated the way that
5:47
those work together. But there was a bunch of earnings data that came out
5:51
last week as well. There was a policy announcement from the Federal Reserve,
5:56
and I guess that just had more to do with like, okay, maybe
5:58
we will do interest rates after all, or something from those lines. Yeah.
6:01
I mean, I think they you know, pretty much said they still
6:05
believe that they're they're going to be cutting next, but they're kind of waiting
6:11
and seeing higher for longer. I guess, But you know, that'll that'll
6:15
play itself out. I mean, clearly, I think it's it's pretty evident
6:19
there are some things that that may be slowing down a bit. You know,
6:25
one of the things that's not talked about a whole lot is the money
6:28
supply, which grew so fast it's actually been shrinking quite a bit over the
6:33
last year. And that, to me, that's probably the biggest thing to
6:41
look at, and that's never talked about. What does that mean when you
6:44
say the money supply and the money supply shrinking? Is this like where how
6:47
much money is floating around out there? And you know, money is created?
6:51
I mean there again, I don't want to get too far in the
6:54
week, but but you know, certainly the government can just print it up
6:58
and pass it out like that was done in COVID. But the money supply
7:00
also increases through the banking system. So you know, if you take one
7:06
hundred thousand dollars and deposit in the way the reserves fractional reserve system works,
7:12
well, now the bank can lend a million dollars out. Well, a
7:15
million dollars gets lent out and goes into other people's hands for their goods and
7:18
services. And what do they do, Well, they deposit money back in
7:21
the bank and it expands. You know, so it expands the amount of
7:26
money in the system, and that's actually been coming down pretty steeply over the
7:31
last year, which really hasn't happened this persistence since I used to even say
7:41
the Great Depression, but which was a deflationary period. So so in a
7:49
way, you know, that doesn't mean we're having a great depression. What
7:55
it means is that some of the excesses that were done during the COVID seemed
8:00
to be maybe drying up. It's just taken some time. So maybe that's
8:05
yet another one of those things that were that the economy, although it doesn't
8:09
have like an actual intelligence, but it might be one of those things that's
8:13
waiting to catch one for some of the money to come in the line to
8:16
where we actually are on the size of economy and things like that. You
8:20
know, there's might be more given there because of the amount of money that's
8:22
out there. You're looking for things to catch, right, Well, yeah,
8:24
because people have been scratching their head, why on earth of as consumer?
8:30
How why on earth are these numbers so strong with you know, some
8:33
of the things going on with the with the Fed, and you know that
8:37
could be one reason we just had we just had piles of money floating around,
8:43
and there was a lot of it. There's no doubt about that.
8:45
There's no doubt about that. He gives a call this morning three or a
8:46
four three four five fifty fifty eight three four five fifty fifty. We're gonna
8:50
talk a little bit more about some of the key indicators in the market,
8:52
but then we're going to transition into early retirement. There's some there's some companies
8:58
out there that are offering buyouts of some employee employees you can get into early
9:03
retirement. I think here locally we have a company that's doing I think ap
9:07
AP as a relator that powers has an offer out there. I believe this
9:13
week the employees have to put in notice that they are open to it.
9:20
That doesn't mean they'll get it because the company can pick and choose who who
9:24
actually you know, is approved for it, depending on how many people in
9:28
each department, that sort of thing. But yes, it's a big decision
9:33
that a lot of people out there listening may be facing. We're going to
9:37
take a break in just a minute or two. When we come back,
9:39
we're going to dedicate the rest of the show to that. So if that's
9:41
you out there, or maybe a loved one, or maybe you didn't know
9:43
about this and you need to scramble for it. Whatever it might be,
9:46
you can give us a call. You can tune in the phone number three
9:48
zero four three four five fifty eight fifty eight. Three zero four three four
9:50
five fifty eight fifty eight is early retirement right for you. Regardless of the
9:54
situation. You can tune in and get some advice and give us a call
9:56
if you have any questions for John Atree zero four three four five fifty eight
10:00
three four five fifty eight fifty eight. Just briefly wrapping up our discussion about
10:03
sort of the market performance up until this point. Earnings this week, I
10:09
think we have Disney and Warner Brothers are two of the big ones that are
10:11
going to be coming down. And since a lot of the big earnings are
10:15
behind us, we're really looking at these like less techy derived things and consumer
10:20
sentiment. That's really kind of the big part right now, I guess yeah.
10:22
And most earnings so far have come in generally good. The market as
10:28
a whole, the S and P five hundred earnings as a conglomerate has risen
10:35
considerably. I mean we're at we're at record close to record high earnings across
10:39
the board, which helps support you know, that's what ultimately sets stock prices.
10:46
You know, if you're if your companies are earning money, people are
10:50
going to pay more for those companies. And and you know that's what you
10:54
want to see. When the market goes up. Are the earnings following or
10:58
or is the market following the earnings? And if that happens, then that
11:01
keeps valuations in line. You know a lot of folks say, well,
11:03
we're up relatively close to record highs, but the earnings are also at record
11:09
highs, and and it helps support that. And there are times when that's
11:16
not the case, when there's a little disparity between the two and and and
11:20
that's when you get these extreme valuations that that can create a problem. At
11:26
least right now, you know, we're not overheated as far as valuations go,
11:33
because earnings have risen so fast. Yeah. It really people that work
11:39
for these companies and the Leviathans that go underneath trying to turn profitability, managing
11:46
sentiment of investors and publish them. It's only been since we started doing the
11:50
show and I really started paying attention to tech companies are really easy to follow
11:54
because of it usually makes the headlines. But you'll see, you know,
11:58
these releases like Austin Dynamics used to release like their robots that they see do
12:03
things, and Tesla over this past weekend released video of their robot that was
12:07
doing like battery sorting or whatever along the line. And for the longest time,
12:11
it was just like I didn't really understand. It's like, oh,
12:13
this is just to get clicks on social media, but this is actually like
12:16
signaling to investors in markets and things like that as well. It's like,
12:20
look how long we've come along on this, or look how long we've gone
12:22
along with this. It's it's perception management a lot of the time, is
12:26
what it is, and and it took me a long time to get caught
12:28
up on that. You know, it's not just releasing the videos online for
12:31
for giggles. There's real perception management to go. Absolutely. There are a
12:35
lot of optics there. They're trying to you know, portray out there so
12:39
they have the confidence of the of the investment community or attention just like anything
12:45
else. You know, They're they're wanting people to pay attention to them.
12:50
And speaking of tech, my son as a tesla. Oh and I guess
12:56
this month they're running some kind of a special but they gave the full self
13:01
driving of software for free for a month's trial. Oh wow. It's just
13:09
like one hundred dollars a month to upgrade to the software. And I guess
13:13
it's a teaser to try to get people, you know, you know where
13:18
they can't live without it. And well, i'll tell you what that is.
13:22
That is some freaky stuff. Try it out. Working pretty well?
13:26
Yeah, I mean it it works pretty well. I mean it's not perfect
13:28
there. You know, you get into some of the strange intersections and it's
13:33
it's extremely cautious and so you know, you pull up there and it's like
13:39
you or I would hit the gas and have already gone and it's still looking
13:41
around and making sure that. But it is incredible what it can pick up.
13:48
All the cameras and sensors that are on it. It puts that out
13:52
on the screen and models everything around and you can see what it can see.
13:58
And it literally can see cars, things that are in your blind spot,
14:03
you know, cross traffic. It sees it before it even gets in
14:07
your eye sight. It's pretty incredible. The the we're still at the very
14:11
beginning stages of this technology, but when it comes, it's going to come
14:13
so quickly, Like once it's it's commonly adopted, suddenly, you know,
14:18
you see what we've done with AI. Now you can't Every single app that
14:20
you're downloading now has an AI update to it. Your banking app, your
14:22
Facebook app, whatever, Like everything has an AI attached to it now.
14:26
I don't know if that's good or bad, but that's just that's just the
14:28
way it is. Sooner or later, you're not gonna be able to get
14:31
a car without at least the option for autonomous driving. Right, It's gonna
14:35
be something that happen our our test trip. He came down to the office
14:39
and and my staff and me, everybody got in. It was like,
14:43
you know, my my office manager, myras, she was like, should
14:48
we all ride together? Isn't this like the president vice president thing? You
14:52
have somebody at a secure location, right, just the loan survivor. But
14:56
but we got in and we said, well where do we go? It's
14:58
like, let's just go over to Starbucks. And sure enough, I mean
15:03
it took us to Starbucks. But we did have an issue if you're familiar
15:07
with the Starbucks here on the boulevard, people line up in the parking lot
15:13
and then you're pulling in from the boulevard and well, anyway, the car
15:20
didn't realize that those people were waiting in line. I have no idea where
15:22
the Q was, how would it right? And so it just rapidly pulls
15:26
into the drive. We got a little, you know, thanks to Tesla,
15:33
a little bad look from the cars behind her. So you're trying to
15:37
look at Druk driving the Tesla trying to get ahead of everybody, right,
15:41
oh my. So you know, there are few quirks with the software that
15:45
still need to be working. And I know that it's better than this,
15:48
but and it's come a long ways. But when these stories started developing,
15:52
you heard some of the growing pains of the stories and things I couldn't stop
15:56
but to hear think in my head about these stories. We would hear every
15:58
once in a while, especially like in the pre Google Maps day, where
16:02
people were following their GPS or following something and they weren't paying attention. They
16:07
would end up driving into like a lake or something. You know, it's
16:10
like, you know, it's like, well, I was I was watching
16:11
the map, it was like, well, the reality was in front of
16:14
you. Couldn't you have seen the lake? So that that's the thing that
16:17
that concerned me when this first came about. But they've got It's not like
16:19
they're just relying on what could be outdated data from a from a service that
16:25
provides maps or something. It's way more integrated than that now. Yeah,
16:29
And I think every one of these trips of people take ads more as more
16:33
down to it. And you know, there was one point where we we
16:38
kind of hit a curb coming down the hill from our house, you know
16:44
where we where we live, and uh, I'm sure the next time we
16:48
go down the hill, it'll probably figure it out, learned it or whatever.
16:51
Movie it's interesting, very interesting. So it but like to say it
16:56
it it does appear to be at this point more cautious than a probably a
17:02
human driver would normally be in certain situations. Well that's not a stily bad
17:06
thing. I want it to be more aggressive anyway, That's really true.
17:08
John Bredette is here for Fourth Avenue Financial. We're taking your phone calls this
17:11
morning on how you can retire right and you can do so many ways.
17:15
One of those would be giving John a call this morning, and give us
17:17
a call. If three zero four, three four five fifty eight fifty eight
17:19
three zero four, three four, five fifty eight fifty eight is a number
17:22
you can call. You can also send us over a text message that's three
17:26
zero four nine three five five zero zero eight. Fourth Avenue Financial located one
17:30
seventy Court Street, Downtown Charleston. Their fue number three zero four seven four
17:33
six seven none seven seven. We'll take a break. When we come back,
17:36
we're gonna talk about early retirement. Early retirement AEP has recently made an
17:38
offer or is in the process of making offers to folks here locally, So
17:42
this may affect you if you're trying to evaluate if early retirement is the right
17:47
situation for you. We're want to talk about that when we come back.
17:48
You're listening to retire Right Radio with John Burdett. I'mdale Cooper on five ADWCHS,
17:53
the Voice of Charleston. Retire Right Radio was sponsored by Fourth Avenue Financial,
17:56
which is solely responsible for its content. Security is offered through JWCL Financial
18:00
member Fenracipic Investment advice offered through jw CO Advisors. Fourth Avenue Financial, JW
18:06
Call Financial and JW CO Advisors are unaffiliated entities. The opinions expressed by John
18:10
Bredet should not be construed as specific, investment, legal, or tax advice.
18:14
All economic and performance information is historical and not indicative of future results.
18:18
Investing may involve risk of loss of principle. Any tax advice on this show
18:22
is not intended to be used by any person for the purpose of avoiding US
18:26
federal or state tax penalties that may be imposed on such a person, and
18:29
each listener should seek advice from their tax advisor or legal console on topics that
18:33
arise from the show. John Bredett is not providing legal or tax advice.
18:37
Nothing should be construed as solicitation of an offer to buy securities. This program
18:41
is sponsored by Fourth Avenue Financial, which is solely responsible for its content.
18:45
Are you changing jobs or gearing up for retirement? Don't navigate your financial journey
18:49
alone. At Fourth Avenue Financial, we specialize in guiding individuals through life's transitions,
18:56
from optimizing your retirement savings to managing your investments. We're here to provide
19:00
expert advice every step of the way. Schedule your free consultation with John Burdette
19:06
and take control of your financial future today. Fourth Avenue Financial Dot com Securities
19:11
offer their Jennaucal Financial Incorporated Member fan RECIPC advisory services offered through Jenibuc Advisors Incorporated.
19:15
Republican Eric Nelson is the candidate for state Senate that Kenall County families can
19:21
count on. Senator Eric Nelson has helped create thousands of good paying jobs and
19:25
voted to give West Virginians the largest tax cut in our state's history. Voting
19:30
for Eric Nelson, you know what you get, better roads, more jobs,
19:34
lower taxes, and the best education for our children. Eric Nelson supports
19:38
West Virginia Conservative values. Vote to re elect Senator Eric Nelson. Paid for
19:44
by the Committee to Elect Eric Nelson. Becky, remember to vote for John
19:48
Lwoni for magistrate? Why John? John Lwony is a proven leader who is
19:52
blessed with common sense and sound judgment. He also has a great sense of
19:56
fairness that we need in a magistrate. Those are excellent qualities that I look
20:02
for in a magistrate. Could you tell me his name again? I don't
20:04
want to forget it, Becky, It's John Lewony or magistrate. I've got
20:10
it now. John Lowoney, paid for by the candidate John Lewoney. Make
20:15
sure you're retirement ready with City Wealth Management, a division of City National Bank.
20:21
Call your local City branch to schedule a complimentary review of your current accounts.
20:26
This is retire Rife Radio with John Burdett from Fourth Avenue Financial taking your
20:32
calls at three oh four three four five fifty eight fifty eight or texts on
20:36
three oh four nine three five fifty oh eight. Cool carelessenings ages Witch Carlson
20:55
our number three zer four three four five fifty fifty eight three zer a four
20:59
three four five fifty eight. You can text over any questions you have to
21:02
three zero four non three five five zero zero eight. That's three zero four
21:04
non three five five zero zero eight. John. Our debt is here from
21:07
Fourth Avenue Financial. More information on line fourth Avenue Financial dot com. You
21:11
spell out the whole thing. You can also check out the website at or
21:15
that is the website the Facebook page. You could do that same search on
21:18
Facebook for fourth Avenue Financial and like the page from there. We had one
21:23
question that this is this is maybe not abstract, but I'm not sure that
21:29
this is necessarily your willhouse. But well we'll get through with this and then
21:32
we'll get to our topic on early retirement. Good morning, Is it actually
21:34
possible? This is from the three zero four non non three Good morning?
21:37
Is it actually possible for the US to pay off its debt and trillions a
21:45
let's see, at this pace it would take thirty thousand years. Debt is
21:52
unrealistic. Is there any scenario where we could eliminate debt? Is the goal
21:56
even to eliminate debt? Well, you know, in a perfect world,
22:02
but actually, you know, to a degree, some of the debt gives
22:06
the US the ability to have the reserve currency, so there's there's some probably
22:14
the answer is some sort of a balance there. You know. What is
22:15
not good right now is the annual deficit being acided, you know, the
22:21
overspending every year that keeps adding to it is an issue. You know.
22:26
Debt is one of those things if we if we were not adding to it,
22:30
if we were just servicing it, it would be it would be like
22:34
you and your mortgage. You know, over time, when you first buy
22:40
the house, the fifteen hundred dollars a month payment is a is a hard
22:44
pill to swallow. But because of inflation, things like that you know,
22:48
eventually it becomes very affordable because it's the same fifteen hundred dollars. So I
22:55
think that that really the answer to the deficit is getting the budget it in
23:00
control, and then and then allowing growth to happen. And it will shrink
23:06
as a percentage of of our outlays if if, if that were to take
23:10
place. But as long as we're spending so much more than than than it's
23:14
coming in, you know, that is that's not going to happen until that
23:19
that condition is met. And and and something also to remember about the debt
23:26
that's out there, debt, it has already largely been produced. You know,
23:33
if you or I produced something through our jobs and earn those certificates we
23:37
talk about called dollar bills, the certificates of service, we can elect to
23:41
allocate that somewhere. And if we're buying a bond, we already produced to
23:47
purchase that bond. So the interest that is paid all of those things,
23:53
most of that comes back to people. Oh interesting, Yeah, In the
23:59
United States, the vast majority of of of the debt is owned by US
24:03
citizens, US entities. That that so it's it's really you know, circulating
24:08
back and forth. You hear a lot of these scare stories. Oh,
24:12
you know, China owns us and this, that and the other. But
24:15
you know what is the debt thirty trillion and China owns several hundreds of billions.
24:22
It's it's really a minor owner of of of the debt. And you
24:30
know, I think sometimes that issue can get overblown, and what happens it
24:36
prevents you from with fear, from doing the other things that you actually control.
24:42
And I don't mean to h if you've seen the old movie Dave about
24:47
the president that gets his his financial advisor into ballance balance the United States budget,
24:52
I don't mean to get all that simplistic, but honestly, what you
24:53
just talked about is very similar to the strategy that you give to your clients.
24:59
You know, you got the manager cash flow first, right, you
25:00
manage your cash flow, make sure you're not overspending, and then you can
25:03
worry about servicing they can. I mean the government, though, has a
25:07
lot more levers than you do as an individual. Oh I hope so so,
25:10
so you know, there's a lot more runway there than there would be
25:14
for your own household, and it is somewhat different. Well yeah, I
25:18
mean it's it's got to be a lot, it's got to be a lot
25:19
different. One last question I had, and let's pivot over to talking about
25:22
the early retirement, is this that is this that area where we're talking about
25:26
the debt, borrowing money for the US and things like that, that we
25:29
can expect, hopefully a little bit of a natural slowdown because of the interest
25:32
rate environment that they can no longer borrow money at zero present interest. Yeah.
25:36
I mean you're seeing that talked about a lot more lately because of that,
25:41
because it's interests go up, that's that's services, the cost of service
25:45
that debt is higher, and so that puts more budgetary pressures on on and
25:52
so yes, I think that that. I don't know if it's fully self
25:56
correcting, but at least yeah, it makes people more aware and to be
26:00
honest with you, when interest rates are zero for so long, you know,
26:04
if you can borrow for zero and invest in something, it might not
26:10
be a bad time to be doing that. Now, the question is was
26:12
the government investing that efficiently? And so that's really what the def as it
26:18
is. It's like, and the budget is who gets to spend the money?
26:22
Do we allocate it? To the government to elect how to spend it
26:27
or do we leave it in the hands of the producers to spend it.
26:32
And that's the real debate. More so it is the debtload, because,
26:34
like I say, the debt has already been produced by the citizens and is
26:40
owned by the citizens largely. And when interest rates go up, you know,
26:45
that hurts a lot of people, but it also helps people the people
26:48
that own the debt and so, which is largely US. So it kind
26:55
of circles back in and it's not as clear cut as a household budget for
26:59
sure, because there you know, somebody else owns the debt. It's not
27:03
collectively us owning it. It's it's you owe somebody money and you have to
27:08
pay it back. Well, fascinating information this morning and learning a lot and
27:14
answering questions. That was from the text line. You're welcome to weigh in
27:17
as well. At three zero four nine three five five zero zero eight three
27:18
zero four nine three five five zero zero eight. I want to talk a
27:22
little bit about early retirement, what it means and if maybe that is something
27:25
for you. AEP recently here locally is starting to starting the process, if
27:30
possibly or they're going to offer some folks early retirement. So I guess you
27:33
have to more or less apply for it or throw your hat in the ring.
27:36
One way. Yes, if you're an eligible employee, you should have
27:40
received notice that you know you're getting this opportunity, and it will have an
27:45
outline of the numbers that they're offering you, and then you have I believe
27:49
I could be wrong here, but I believe it's sometime this week that you
27:53
have to essentially throw your hat into the ring. And then I think it
27:57
and there again, I don't want to get the day tron, but I
28:00
think it's maybe June early June that you'll be notified that yes, you were
28:07
accepted or you were not. And and you know, a lot of that
28:11
is just going to be depending on in what departments and and who you know
28:18
throws their hat in the ring, and and and how aggressive the company is
28:22
actually trying to reduce headcount. And so this is something companies will do this
28:26
from time to time. It allows them to maybe get ahead of pay roll
28:30
a little bit, reduce some costs here or there, cut off some you
28:33
know, maybe some I know that I've worked in companies before where they just
28:37
had some areas that were overburdened with like senior leadership, for example, and
28:40
there was a lot of money being funneled into salaries at positions that were kind
28:44
of redundant, and you know, they just wanted to try to scale back
28:45
a little bit because there was a lot of redundancies. So that these are
28:48
legit offers when they come about. Companies do this for a reason. It's
28:52
not like they're trying to trick you into anything. They give you the opportunity,
28:56
and they could be quite lucrative. You know, a lot of times
29:00
you get healthcare benefits that allows you, if you're pre medicare age to uh
29:06
to bridge to a degree the the the medical cost. A lot of times
29:11
you'll get some bonuses on your pension numbers uh that that you can use to
29:17
uh either get extra income from the pension or in many cases and and a
29:22
p is certainly a case you have the ability to roll that over into an
29:27
high ray and manage it yourself potentially, and uh so you know, there
29:33
there are certainly lots of benefits that come with that. A lot of times
29:37
you get the vacation times and sick time and all of all of that time
29:44
paid to you. And then also a lot of times, most times you
29:47
get some sort of a severance which is uh essentially your salary for a period
29:52
of time that that will help bridge that gap as well. And a lot
29:56
of people, you know, should you take should you not? You know,
30:00
a lot of that is depending on your personal situation. If you've managed
30:06
your finance as well, uh, you probably are in a stronger position to
30:11
be able to take take an offer. And and it's also very frequent,
30:15
depending on the age of the person, you know, to take the buy
30:19
out and then still work somewhere. I was gonna say, this isn't official
30:23
retirement for the person accepting the buyout, so you can still not foil for
30:27
retirement or whatever and take a fully vested job somewhere else. Yes, I
30:32
mean, there's there is a lot of that type of activity going on out
30:34
in the economy, where you know, basically somebody is drawing a full retirement
30:40
now off of a previous employer that they worked for for a number of years
30:45
and has gone back. And sometimes it's a case that I mean, I've
30:49
seen a lot of that here in the valley, particularly in the chemical industry.
30:53
They'll be independent contractors you know, being paid without benefits at a riger
30:57
hourly wage and they actually are working the same in the same location they were
31:04
before. Now that's not doesn't always happen, but but certainly a lot of
31:08
government jobs do that too, where they contract out to the people they just
31:11
like go or whatever, right, right, and and so so there can
31:15
be some pretty wild opportunities out there if if you fit in them in the
31:19
right uh, you know, if you're the right puzzle piece. We don't
31:23
know the details, of course, about what AEP might be offering, but
31:26
traditionally speaking, is there usually in a negotiation room on this or is it
31:30
like a black and white cafeteria thing pick or there can be I think and
31:36
there again every company works different, but but generally, you know, your
31:41
supervisor has probably been giving marching orders from on high. Hey, we've got
31:45
to reduce headcount in your department by X number of employees, and then the
31:51
employees will put it in and then the supervisor a lot of times is the
31:56
is the one who says, Okay, this is what we need to run
31:59
this unit, and these are the people that I need to have with me,
32:02
and these are the people that can go. You know, if you
32:07
have a good relationship with that person and you really want to go. You
32:13
know, that's the person you need to talk to you generally, because they're
32:15
the ones that are are are most likely you know, taking the hat that's
32:21
in the ring and making sure that it gets passed along these it's very important
32:25
if somebody has the has this type of offer, and this is the perfect
32:29
opportunity to get a hold of John at Fourth Avenue Financial and maybe take a
32:32
look at see how how strong your situation is. By the way, that
32:35
phone number three zerre a four seven four six seven on seven seven three zero
32:38
four seven four six seven on seven seven Fourth Avenue Financial Online you spell the
32:42
spell out the whole thing. But if you're looking at uh, if you're
32:45
looking at this situation, there's a lot of different scenarios that might that might
32:49
play in for you. Like you talked about this moment, you don't have
32:51
to retire, so I mean you could take it fully into another job.
32:53
Maybe you are of retirement age and you can cash out your Social Security and
32:58
then you still have that. You know, there's a little area in there
33:00
that you might be able to work if that's what you want to do.
33:01
I mean depending on what your goals are and what you want to do.
33:05
It's really important to maybe talk to someone who is a professional in these regards
33:07
because there's limits on how much money you can make, there's limits on how
33:10
much you can invest, take out different things like that. You want to
33:14
make sure you put yourself in the right situation. If you're going to make
33:15
a huge decision like this, right and and count all, you know,
33:20
what will this look like? How will this impact my finances? How will
33:22
this so? How will social security look? How will healthcare look? And
33:27
how does that all play together? Because you know, usually when these offers
33:30
come along, you know you weren't ready to retire. You weren't thinking I'm
33:35
going to retire next year. The offer comes along, and now you have
33:39
an opportunity. And if and and you know, if you've done the right
33:45
things over time, and you've worked somewhere and you're within a handful of years,
33:47
sometimes it's very advantageous to take these offers because you're getting you know,
33:55
extra service, extra payouts, right, you wouldn't and if in the in
34:00
the real risk, if you're not in a position to take it, and
34:02
you don't take it, and they still need to cut what and they still
34:07
need to cut you know, there's a chance that you could be let go
34:12
and not get the package. And that's you know, that's not a great
34:15
thing. Yeah, that's something to consider too, right, So, uh
34:21
and and some of that is just dependent on the company. You know,
34:22
if you if you have a good feeling where the company is and what they're
34:27
trying to accomplish. And there again you're you're supervisors. People like that will
34:30
probably if you've got a good relationship, might give you some guidance there on
34:34
what this looks like. But uh, you know, you run a risk
34:37
if you don't take it, you might not get one. Of course,
34:40
if you don't take it, they might also sweeten it the next time.
34:45
So you just you just don't really know. That's why it's important to know
34:51
your situation and say, well, these numbers work for me, because if
34:54
they do, then then you have a you know, a strong opportunity there
34:59
maybe to take advantage of something that that you really didn't plan on. This
35:04
could affect you, it could affect a loved one. A lot of people
35:06
in this area have family or friends or relatives that are working for AEP or
35:10
anywhere that's offering a full retirement we just or a early retirement. We just
35:14
happened to know that AEP is going to be making an offer soon. If
35:16
you have any questions about this, if you're not sure, if your financial
35:20
house is securing, you want to know if you or a loved one can
35:22
take advantage of this offering, and you have a lot of questions, this
35:25
is your perfect opportunity to get things in line. You can contact joonber Dad
35:29
at Fourth Avenue Financial. That phone number once again is three zero four seven
35:31
four six seven none seven seven three zero four seven four six seven noine seven
35:36
seven on line fourth Avenue Financial dot com. You spell it out to find
35:38
the web page. You can also do that search on Facebook for Fourth Avenue
35:42
Financial. Like the page, you can set up an appointment through Facebook or
35:45
through the web page, or of course you can call three zero four seven
35:47
four six seven nine seven seven. And this is really one of those important
35:51
things we talk about life changing events and different things like that. If this
35:53
is a decision that you did, you do decide to make, it is
35:57
a life changing event. You need to make sure that you have everything set
35:59
up to where you wanted to go. I had a guy that worked for
36:00
me, or tried to work for him a couple of years ago. He
36:02
was in retirement, had a little bit of experience in radio years and years
36:06
ago, wanted to come back and work a little bit, and we got
36:08
him in here. He was able to work for a few months, and
36:09
then he came to me one morning, He's like, I made a mistake.
36:14
I've already mixed out my income for the year. I can't really work
36:15
anywhere else, and I just, you know, I just messed up with
36:19
this and ended up not getting back into the business because he kind of had
36:22
some oversights when it came to how much money he could make after his retirement,
36:27
and things like that are important. You have to make sure you have
36:29
all those things in line. Yes, because even if you are great at
36:34
budgeting and financial planning, before this offer came along, you had something in
36:38
mind, a goal that you were managing to It might have been I'm going
36:42
to retire five years from now, and now all of a sudden, you
36:45
have this opportunity that changes every assumption and every number that you had calculated.
36:50
If you were even if you were diligent, you have to review it.
36:53
How will this impact the goals that I had originally set, and not only
37:00
financially, but lifestyle and psychologically. Sure you know the all kinds of things
37:06
that play into that. All this information is great. If you find yourself
37:09
in this situation or one similar to it, you can give John Bredetta call.
37:13
It is gonna be worth your while. Three zero four seven four six
37:15
seven done seven seven three zero four seven four six seven nine seven seven located
37:19
one seventy Court Street, downtown Charleston, across from the Town Center Mall,
37:22
and you can find it online. It's Fourth Avenue Financial dot com. Fourth
37:24
Avenue Financial dot Com and on Facebook you can do that same search. John
37:29
is back here every Monday morning at eight twenty for Retire Right Radio, helping
37:31
you to retire right and plan out your financial future. John, thank you
37:35
so much for your time. All right, Thank you everyone, Take care.
37:37
We appreciate it as always. That's John Bredett with Fourth Avenue Financial.
37:40
Coming up next is gonna be ABC News, followed by five eighty Live with
37:44
Dave Allen, Hoppy Kerchival. After that, I'll be back this afternoon with
37:45
a weekly at three zero six on Metronews Hot one. Have a great day
37:49
everyone. On five e w C eighths, the Voice of Charleston five MED
38:01
w C h s A F nine six point five f M Charleston at one
38:05
oh four point five Cross Lanes, a w v RC Media station. We
38:08
are proud to live here too,