Latest / WCHS Network Podcasts / 08/18/2025 Retire Right Radio with John Burdette

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08/18/2025 Retire Right Radio with John Burdette · WCHS Network Podcasts

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  Speaker 1: Unlock your dream property with Meeks Realty Group, where Rich
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  Speaker 1: the realtor makes real estate dreams a reality, whether it's
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  Speaker 1: residential or commercial. We've got Charleston to Huntington covered. Your
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  Speaker 1: key to exceptional real estate experience is start here Meeks Realtygroup.
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  Speaker 1: Contact us at Meeks dot us.
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  Speaker 2: The views and opinions expressed on this program do not
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  Speaker 2: necessarily reflect the views and opinions of five eight WCCHS
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  Speaker 2: its employees or WVRC Media. This is retire Right Radio,
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  Speaker 2: a weekly show from John Verdet at Fourth Avenue Financial
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  Speaker 2: that aims to answer your questions about financial planning, investing,
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  Speaker 2: and how to retire right. Fourth Avenue Financial is located
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  Speaker 2: in downtown Charleston at one seventy Court Street. More information
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  Speaker 2: online at Fourth Avenue Financial dot com. Join the conversation
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  Speaker 2: by calling three oh four three four five fifty eight
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  Speaker 2: fifty eight or text three oh four nine three five
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  Speaker 2: fifty oh eight. On Retire Right Radio, let's go live
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  Speaker 2: to the studio with host Dale Cooper and John Burdett
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  Speaker 2: from to have any financial.
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  Speaker 3: And very pleasant Good morning to you.
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  Speaker 4: Thanks for tuning in to retire Right Radio and this
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  Speaker 4: Monday morning in the month of August. It is the
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  Speaker 4: eighteenth day in the month of August. I can't believe
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  Speaker 4: we're almost on September. Kids are out all about at school. Yeah,
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  Speaker 4: traffic was terrible this morning. A new traffic pattern this morning.
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  Speaker 4: Did you notice everybody over in the left lane for
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  Speaker 4: some reason in front of the school on Leo.
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  Speaker 3: Sullivan Way.
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  Speaker 4: Usually there's a lot of traffic there, but I think
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  Speaker 4: the little the little littles were being dropped off at
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  Speaker 4: the at the drop off past Virginia Street, and everybody
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  Speaker 4: was just parked in the let like just waiting in
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  Speaker 4: the left lane. So you get off the highway and
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  Speaker 4: there's just like you have to like circle around everyone
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  Speaker 4: to make a left hand lane on Virginia Street.
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  Speaker 3: I did not notice that. But the school is in it.
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  Speaker 4: It is, and I missed my I know what the
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  Speaker 4: window is. When school's in, I need to get here earlier.
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  Speaker 4: And usually I get here early anyway, so that's not
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  Speaker 4: much of a problem. This morning, of course, it's a Monday,
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  Speaker 4: and I got kind of delayed at the house and
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  Speaker 4: stuff like that, and then I drove to work right
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  Speaker 4: in the middle of everything.
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  Speaker 3: The school near me starts so early that I don't
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  Speaker 3: have to worry now, that's nice. That's always nice. You
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  Speaker 3: can put on to work for you this morning.
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  Speaker 4: If you need some help on how you can retire
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  Speaker 4: right you have questions about your retirement health, you can
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  Speaker 4: give us a call this morning. Three zero four three
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  Speaker 4: four five fifty eight fifty eight three four five fifty
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  Speaker 4: fifty eighth our number. You can text three zero four
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  Speaker 4: non three five five zero zero eight threes are four
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  Speaker 4: nine three five five zeros er eight. We're going to
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  Speaker 4: talk a little bit about well, we talked a little
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  Speaker 4: bit last week about risk, and this week we're going
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  Speaker 4: to kind of pay that off a little bit and
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  Speaker 4: talk about we're going to flip a risk over until
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  Speaker 4: just straight fear. You know, I'm scared of losing everything.
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  Speaker 4: Why don't I just have my cash and a mattress
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  Speaker 4: in my spare bedroom and that's safe.
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  Speaker 3: Eh.
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  Speaker 4: You know, we're going to talk about that a little bit.
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  Speaker 4: Things may not be quite as scary as what you
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  Speaker 4: think it is, even when things look pretty bleak.
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  Speaker 3: But first of all, let's do.
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  Speaker 4: Kind of a rewind and take a look at some
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  Speaker 4: of the action on the stock market last week, kind
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  Speaker 4: of where the indicators are and stuff like that.
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  Speaker 3: Kind of an interesting week.
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  Speaker 4: Honestly, last week week started off kind of uh on
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  Speaker 4: a part, the market did well.
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  Speaker 3: I think last week the market so the market was good.
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  Speaker 4: So so the bottom line was the market was fine,
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  Speaker 4: but it was doing some battle with some competing indicators
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  Speaker 4: as far as inflation and prices of things and stuff
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  Speaker 4: like that goes.
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  Speaker 3: Yes, I mean, the first numbers came in great, everybody thought, hey,
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  Speaker 3: the Fed's going to cut aggressively. You started hearing people
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  Speaker 3: talking about even more than quarter point, right, you know,
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  Speaker 3: half point and beyond two more this year or three
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  Speaker 3: more maybe right. And then and then by midweek a
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  Speaker 3: couple of other indicators were out that kind of showed
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  Speaker 3: that well maybe not. And uh so we're back in
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  Speaker 3: the wondering what the Fed is going to do. Still
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  Speaker 3: the consensus and the market is pricing in a rate
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  Speaker 3: cut uh here here shortly but uh but we'll see
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  Speaker 3: what happens. You know, we've been talking for the last
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  Speaker 3: year about all the rate cuts that we're going to
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  Speaker 3: have and then we really haven't seen much of that.
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  Speaker 3: So you know, of course that is also a good
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  Speaker 3: sign that the economy hasn't hasn't crumbled you know, the
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  Speaker 3: economy and the numbers are are still pretty good. The
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  Speaker 3: labor market appears to be slowing down, but it's still growing.
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  Speaker 3: It's not like we're shrinking, you know, the number of
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  Speaker 3: jobs in the country. But but the rate of growth
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  Speaker 3: is slowing, which which would argue for rate cuts. But
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  Speaker 3: but we'll see what the the wisdom of the Fed
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  Speaker 3: has here in the next month.
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  Speaker 4: It's crazy. It's crazy to watch this as it unfolds.
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  Speaker 4: But again, when you try to analyze things on like
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  Speaker 4: a micro level, when you're talking about something that's such
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  Speaker 4: that that impact is on such a micro level, it's
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  Speaker 4: it's sort of hard to understand what those numbers might
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  Speaker 4: mean in the long term.
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  Speaker 3: I mean, all these things usually not play in hell,
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  Speaker 3: and even a rate cut that happens, it really doesn't
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  Speaker 3: filter through the economy for for you know, a good
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  Speaker 3: number of months. So it's not like it's flipping a
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  Speaker 3: switch and everything is great because the the rates are lower.
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  Speaker 3: Remember as rates go down that it benefits some people
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  Speaker 3: and it hurts some people, you know, those that are
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  Speaker 3: living on interest bearing securities things like that that could
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  Speaker 3: that could actually impact their income. Where a young person
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  Speaker 3: buying a house might favor that. So, you know, even
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  Speaker 3: rate cuts or rate increases, they don't cut across the
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  Speaker 3: board evenly. There are winners and losers to everything that
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  Speaker 3: happens in the economy.
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  Speaker 4: When if someone is out there looking for, you know,
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  Speaker 4: to refine answer to buy a house or something along
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  Speaker 4: those lines, and they hear about a potential you know,
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  Speaker 4: quote unquote rate cuts that are coming, you know, like
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  Speaker 4: with gas, for example, when the price of oil drops,
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  Speaker 4: the price of gas does not drop.
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  Speaker 3: When the price of oil goes up, the price of
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  Speaker 3: gas does go up. You know.
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  Speaker 4: It's it's it's an interesting the way that game plays
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  Speaker 4: when it comes to interest rates in the mortgage market anyway,
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  Speaker 4: generally speaking, that cut is reflected fairly consistently. Like if
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  Speaker 4: there's a cut to the that the FED makes, that
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  Speaker 4: is reflected to some degree in the in the downstream rate.
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  Speaker 3: Generally, when the FED is cutting rates, it's really cutting
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  Speaker 3: the short you know, the shortest end of the of
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  Speaker 3: the of the yield curve. So it's like the top
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  Speaker 3: for the lever or the bottom of the level, I guess.
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  Speaker 3: And then yeah, so and there again, I'm no mortgage expert,
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  Speaker 3: but mortgage rates tend to track. The movement really more
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  Speaker 3: of the ten year it seems, I think, because that's
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  Speaker 3: about the average mortgage length something like that. You know,
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  Speaker 3: you might have fifteen and thirty year mortgage, but people
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  Speaker 3: move and pay off and that sort of thing. So
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  Speaker 3: so you know, when lenders are lending, they're looking more
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  Speaker 3: at that ten year rate. I believe to set that
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  Speaker 3: and so that doesn't move in lockstep with what the
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  Speaker 3: FED does. It usually moves in the general direction, so
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  Speaker 3: it will have an impact. I had that question yesterday
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  Speaker 3: from somebody that I know about buying a car. You know,
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  Speaker 3: should I wait to buy a car if interest rates
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  Speaker 3: are down? And it's like, well, it depends. You know,
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  Speaker 3: how much are you going to finance, how long are
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  Speaker 3: you going to finance it for? And if rates are
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  Speaker 3: less in the future, does that overcome maybe a good
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  Speaker 3: deal that you get today, Because the interest sometimes of
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  Speaker 3: extra percent on a car or something like that doesn't
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  Speaker 3: sometimes amount to as much as it might on a
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  Speaker 3: home that's financed over a longer period of time. So
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  Speaker 3: you know, it'll impact things differently and in people's decisions
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  Speaker 3: a little differently. And like I say, it doesn't cut
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  Speaker 3: evenly across the board. The good thing with the market
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  Speaker 3: outside of the interest rate story is the earning story.
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  Speaker 3: You know, we have the hope of lower interest rates
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  Speaker 3: that we think we're going to get, which usually is
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  Speaker 3: good for the stock market, but we also have growing earnings.
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  Speaker 3: Earnings keep surprising to the upside, and that also has
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  Speaker 3: been really the catalyst for the market moving forward over time.
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  Speaker 3: The market valuations follower earnings, and as long as those
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  Speaker 3: corporate earnings are coming in good, you know, that really
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  Speaker 3: puts a backdrop of backstop under the under the under
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  Speaker 3: the market.
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  Speaker 4: I have a theory, although there has to be you know,
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  Speaker 4: media surrounding financial news and the different industries and things
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  Speaker 4: like that, there obviously has to be coverage of those
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  Speaker 4: sorts of things. It's it's of the public interest to
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  Speaker 4: cover those things. But I think that people tend to like,
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  Speaker 4: I don't know that it's great that people know that
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  Speaker 4: and things like that. There obviously has to be coverage
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  Speaker 4: of those sorts of things. It's it's of the public
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  Speaker 4: interest to cover those things. But I think that people
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  Speaker 4: tend to like, I don't know that it's great that
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  Speaker 4: people know the names of the CEOs of these companies
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  Speaker 4: and the guys that like that they've become sort of
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  Speaker 4: like cult figures, regardless of wood is whether you know
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  Speaker 4: people automatically think of Elon Musk. But also, I mean
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  Speaker 4: you have Sam Altman from open Ai and things like,
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  Speaker 4: I mean, people that comment on absolute everything anymore and frankly,
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  Speaker 4: other than their business. I don't know why we care
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  Speaker 4: all that much, and and I think that we play
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  Speaker 4: too much into that. Like Sam Altman said this about
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  Speaker 4: who cares what he said about healthcare. That's not just
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  Speaker 4: you know, it's like sometimes I think we give these
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  Speaker 4: guys too much headline juice just because they're they're rich.
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  Speaker 4: When Sam Altman couldn't tell me anything about my wife
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  Speaker 4: other than if I pay for for open Ai or not.
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  Speaker 3: Oh yeah, yeah, Oh well, I don't know. There's something
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  Speaker 3: about people in the public eye. It's like the uh,
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  Speaker 3: you know, the Hollywood folks making comments on politics or
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  Speaker 3: this that or the other. I mean people just exactly
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  Speaker 3: you know, you're famous, and you know why are those
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  Speaker 3: cus fameous? Well, I mean they run big companies and
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  Speaker 3: they are the innovative companies, and uh, you know, people
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  Speaker 3: look at them like they've got some special sauce. But
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  Speaker 3: you know, they they they're wrong, and just like everybody
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  Speaker 3: else's sometimes.
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  Speaker 4: We sometimes, I think, substitute their company with them. And
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  Speaker 4: and for all the problems that some people feel that
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  Speaker 4: Elon Musk has had with public facing, I mean, Tesla's
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  Speaker 4: a separate entity than than the man himself, and so
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  Speaker 4: you can't really you shouldn't really confuse those things when
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  Speaker 4: you're trying to make investment decisions or anything else. I mean,
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  Speaker 4: I guess you could. I mean, if you don't I
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  Speaker 4: want to invest in something because you have a personal
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  Speaker 4: problem with I mean, that's one thing, But don't let
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  Speaker 4: the headlines and all the different things mess you up
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  Speaker 4: too much when it comes to that.
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  Speaker 3: Yeah, I mean, you need to stay focused on what
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  Speaker 3: your goals are. You need to, you know, focus in
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  Speaker 3: on your time horizon and make your investment decisions based
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  Speaker 3: off of your needs, not from a statement, whether it's
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  Speaker 3: a CEO, a famous person or even a politician. Yeah,
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  Speaker 3: you know, what is what is the important thing for
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  Speaker 3: me in my life? And how do I structure my
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  Speaker 3: finances around that?
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  Speaker 4: And you can you can find that out. You can
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  Speaker 4: have your situation evaluated and come up with what's best
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  Speaker 4: for you, not by searching around online or finding what
• 10:39
  Speaker 4: your favorite celebrity's opinion is or your favorite billionaire's opinion is.
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  Speaker 4: But John's opinion is going to help you out a
• 10:44
  Speaker 4: lot on those and you want to put the experts
• 10:45
  Speaker 4: on your side, you can call us this morning. You
• 10:47
  Speaker 4: can start right now by calling three zero A fourth
• 10:48
  Speaker 4: three four five fifty eight fifty eight three four five
• 10:50
  Speaker 4: fifty eight fifty eight. You can also find out more
• 10:52
  Speaker 4: information online about Fourth Avenue Financial. You can go to
• 10:54
  Speaker 4: the website Fourth Avenue Financial dot com where you spell
• 10:56
  Speaker 4: out the whole thing Fourth Avenue Financially. You can find
• 10:58
  Speaker 4: all kinds of information there, sign up for newsletter. You
• 11:01
  Speaker 4: can also like the page on Facebook. You do that
• 11:03
  Speaker 4: same search and like the page over there. A couple
• 11:05
  Speaker 4: things we're going to talk about this morning, and again
• 11:07
  Speaker 4: you're welcome to give us a call with anything that
• 11:09
  Speaker 4: you want to ask questions about how and how you
• 11:11
  Speaker 4: can retire right about your specific situation. But we're going
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  Speaker 4: to talk a little bit about the other end of
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  Speaker 4: talking about risk. We talked about risk a little bit
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  Speaker 4: over the last couple weeks when Logan was in here
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  Speaker 4: and last week with John and I. But this week
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  Speaker 4: we're going to pay that off with risk turning into fear.
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  Speaker 4: Some people can get so paralyzed by either movement in
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  Speaker 4: the market, headlines, change of presidential administry, whatever it might be.
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  Speaker 4: Some people get so scared about those things that they
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  Speaker 4: might ask, should I just cash everything out? Should I
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  Speaker 4: move everything? Should I take everything and do one thing
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  Speaker 4: or the other way? Like it's like all one thing
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  Speaker 4: or another just because of an event or a headline
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  Speaker 4: or something like that.
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  Speaker 3: Yes, And oftentimes you even see with new investors, why
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  Speaker 3: haven't you invested before? I don't want to lose her, okay,
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  Speaker 3: right right, this concept of losing everything, And I think
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  Speaker 3: fundamentally that is a really a lack of understanding what
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  Speaker 3: investment is. You know, Folks sometimes see investment as just
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  Speaker 3: a quote gamble or they see numbers on a page
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  Speaker 3: that go up and down and don't understand what those
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  Speaker 3: numbers actually represent and what's behind those numbers. And so
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  Speaker 3: it's a scary thought to put your hard earned money
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  Speaker 3: into something that did Ultimately, it's scary because you don't
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  Speaker 3: understand the inner workings of it. And you know, the
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  Speaker 3: concept of stock is you are an owner of a
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  Speaker 3: company when you own a piece of stock whatever company
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  Speaker 3: you own. Now, could a company go out of business, yes,
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  Speaker 3: And if it does, if you invest all of your
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  Speaker 3: money in that one company, could you lose everything? Yes.
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  Speaker 3: So that is I think where that fear is rooted.
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  Speaker 3: You know, people have heard the stories of Enron and
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  Speaker 3: things like that. But when you're an investor in the
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  Speaker 3: market in general, in funds, you don't own one company.
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  Speaker 3: You own hundreds of companies potentially even more than that
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  Speaker 3: across your portfolio. The concept that you'll lose everything is
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  Speaker 3: something that is almost it's an a near impossibility unless
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  Speaker 3: a meteor strikes or something of that nature. Because if
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  Speaker 3: you think about your daily life and all the goods
• 13:44
  Speaker 3: and services that you claim and consume, all the things
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  Speaker 3: that you do in your daily activity, who makes those
• 13:51
  Speaker 3: goods and services? Who produces them? Those companies that you own,
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  Speaker 3: we literally would be back to the stone age if
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  Speaker 3: everyone could lose everything.
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  Speaker 4: We have much bigger problems than a single retirement portfolio.
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  Speaker 4: If everything went to zero.
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  Speaker 3: Yes, and that just doesn't happen. You know, the market,
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  Speaker 3: even when it is going has gone down for a
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  Speaker 3: period of time, there's still economic activity going on. You know,
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  Speaker 3: the Great Depression, as bad as it was still seventy
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  Speaker 3: some percent of the people had jobs. There was still
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  Speaker 3: economic activity, and there were still companies that were profitable.
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  Speaker 3: And you know, when you look at those times of
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  Speaker 3: greatest fear, those end up being the best opportunities. So
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  Speaker 3: this idea, you know, you I'll still hear it. Sometimes
• 14:44
  Speaker 3: folks come into the office and talk about two thousand
• 14:47
  Speaker 3: and eight, and two thousand and eight is the worst
• 14:50
  Speaker 3: market that you and I have ever experienced firsthand. Yeah,
• 14:54
  Speaker 3: for sure, market was down about forty percent. Yeah, that
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  Speaker 3: is scary, but the world didn't really grind to a halt.
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  Speaker 3: We still went out and lived our lives and consumed
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  Speaker 3: goods and services, and companies were there to provide them.
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  Speaker 3: So the market goes down, and what does that fear
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  Speaker 3: make you do? It makes you sell. It's just a
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  Speaker 3: reaction that, oh, I'm scared, I need to get out
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  Speaker 3: of this scary situation. And when you do that, what
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  Speaker 3: have you done. You've made your fears become a reality.
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  Speaker 3: You've locked in those games, you've locked in those losses.
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  Speaker 3: You've pulled yourself out at exactly the time that really
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  Speaker 3: you should be buying that, really you should be stepping
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  Speaker 3: into it because it's opportunity. And you don't have to
• 15:50
  Speaker 3: look very far after two thousand and eight to see
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  Speaker 3: that play out. You can see that play out on
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  Speaker 3: a small scale this year. You know, we were down
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  Speaker 3: twenty close to twenty percent earlier this year, and now
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  Speaker 3: we're up, you know, just almost overnight. You know, that
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  Speaker 3: was a fast dip in recovery. You know, the market
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  Speaker 3: grows in spurts. Sometimes when it catches momentum, it goes
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  Speaker 3: up much faster than you think it should. But that's
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  Speaker 3: how the market works. If you look at history, if
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  Speaker 3: you miss those spurts, you've really missed out on a
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  Speaker 3: lot of return, right, Yeah, because we've seen that happen.
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  Speaker 4: I have this, I have this, this completely unconfirmed theory,
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  Speaker 4: and it's mine alone, But I do believe that there's
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  Speaker 4: something into because it seems like that people have long
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  Speaker 4: through sort of a vel of ignorance, equated the market
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  Speaker 4: with a risk, the same risk as gambling. You know,
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  Speaker 4: it's just like gambling. The thing is, and part of
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  Speaker 4: the issue I think we have now is because especially
• 16:48
  Speaker 4: in the last ten years, the prolification of sports gaming
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  Speaker 4: into our everyday culture is people now know more about
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  Speaker 4: gambling than they do about the market. They understand the
• 16:57
  Speaker 4: gambling more than they understand the market, and so I
• 16:59
  Speaker 4: think think they equate gambling in the market more than
• 17:02
  Speaker 4: there's actually no similarities there.
• 17:05
  Speaker 3: No, no. I mean a gamble. If you go to
• 17:08
  Speaker 3: a casino and you gamble or go online and gamble,
• 17:14
  Speaker 3: there will be a winner and there will be a loser.
• 17:19
  Speaker 4: The house doesn't want you to win to whereas in
• 17:21
  Speaker 4: the market the house is fine with you winning to right.
• 17:24
  Speaker 3: So the difference there, it's the same dollar. It just
• 17:27
  Speaker 3: gets allocated depending on the odds that are set up
• 17:31
  Speaker 3: basically in the in the transaction and the house, if
• 17:34
  Speaker 3: enough hands are played, the house has a percentage that
• 17:38
  Speaker 3: they're going to take just because of the way the
• 17:40
  Speaker 3: odds work. So you're not growing anything, you're just redistributing
• 17:47
  Speaker 3: the same dollars in a gambling scenario. Yeah, if we
• 17:51
  Speaker 3: bet and I win and you lose, we're just trading dollars.
• 17:55
  Speaker 3: Companies are are not doing that. Company. You're an owner
• 18:01
  Speaker 3: of a company that's trying to expand their goods and
• 18:04
  Speaker 3: services to people, trying to become more efficient and more profitable.
• 18:09
  Speaker 3: Companies grow the dollars they grow the pool of money
• 18:15
  Speaker 3: that is being distributed. Gambling does not do that. You know,
• 18:20
  Speaker 3: look at look at a company like Microsoft, or an
• 18:23
  Speaker 3: article that I just saw a few weeks ago about
• 18:25
  Speaker 3: the Navidia CEO said that they've made more billionaires than
• 18:29
  Speaker 3: any company. You know, that doesn't happen unless the pie
• 18:33
  Speaker 3: is growing. You know, because Microsoft, there was a you
• 18:38
  Speaker 3: know several years ago the number of millionaires created just
• 18:42
  Speaker 3: by Microsoft was in the tens of thousands that have
• 18:46
  Speaker 3: owned Microsoft over the years. You know, that is not gambling, right,
• 18:51
  Speaker 3: you know. Now, yes, a company can go bad, but
• 18:55
  Speaker 3: the concept behind it is the it's a growing pool
• 19:00
  Speaker 3: of resources if those companies are successful. If you're success successful, gambling,
• 19:07
  Speaker 3: nothing grows, somebody loses. Who's losing with Microsoft? You know, No,
• 19:14
  Speaker 3: it benefits society. That's why it multiplies and grows. All
• 19:18
  Speaker 3: of us have our computers on our desk and are
• 19:20
  Speaker 3: using some of those tools that make us more efficient.
• 19:23
  Speaker 3: That's why Microsoft has grown the pool and pie that
• 19:27
  Speaker 3: gets divided up. And that is very different than gambling.
• 19:30
  Speaker 3: So you're you are correct there. That is a big,
• 19:34
  Speaker 3: really misunderstanding about how investing works and why it is.
• 19:39
  Speaker 3: It's a it's a risk investing is a risk, not
• 19:44
  Speaker 3: a gamble. Now, that's a great man.
• 19:46
  Speaker 4: This should be bookmarked and if you're out there, this
• 19:48
  Speaker 4: is something you can play back for anybody that you
• 19:51
  Speaker 4: have this argument with, because if if you're like me,
• 19:52
  Speaker 4: you know people in your life that just that that
• 19:54
  Speaker 4: absolutely are assertive that there's just no difference. It's it's
• 19:59
  Speaker 4: just gambling with all your money. And it's so it's
• 20:01
  Speaker 4: like if you're like you bet black or and roulette
• 20:04
  Speaker 4: and then you can just leave it on black for
• 20:05
  Speaker 4: as many spins as you want. I mean, that's not
• 20:08
  Speaker 4: even a perfect analogy, but it's a lot closer. It's
• 20:10
  Speaker 4: not like you take your ball and go home. You know,
• 20:12
  Speaker 4: it's like you have you have active play all the time,
• 20:14
  Speaker 4: and it's a it's a frustrating thing. And it's got
• 20:16
  Speaker 4: to be frustrating because people are getting that kind of
• 20:18
  Speaker 4: baked in.
• 20:19
  Speaker 3: And if you and you know, statistically, if you leave
• 20:23
  Speaker 3: it on black and spend it every time, and you
• 20:27
  Speaker 3: do it enough times, you will lose. Yeah, exactly right.
• 20:30
  Speaker 3: There is no chance if you play it long enough
• 20:34
  Speaker 3: that you will win because it's not set up for
• 20:36
  Speaker 3: you to win. That is not the case. You know,
• 20:40
  Speaker 3: everybody in that company, every every employee, everybody in that
• 20:46
  Speaker 3: company that you own stock in, is playing on the
• 20:49
  Speaker 3: same team to grow that business to be more valuable
• 20:54
  Speaker 3: to the customers they serve. You know, that whole team
• 20:58
  Speaker 3: of people is working together. I mean, that's what the
• 21:00
  Speaker 3: economy is, you know, And that's why some people have
• 21:04
  Speaker 3: more capital to and more money because they allocate it well.
• 21:09
  Speaker 3: You know, these companies have billions and now trillions of
• 21:13
  Speaker 3: dollars of value because the marketplace has decided, you know,
• 21:18
  Speaker 3: I'm i'm I'm getting I'm getting on that ship before
• 21:22
  Speaker 3: it sales. And so these ideas, these these teams of people,
• 21:28
  Speaker 3: the famous people that you're talking about, why do they
• 21:31
  Speaker 3: have that much capital because they have proven to do
• 21:35
  Speaker 3: well with it and that attracts even more capital. Yeah,
• 21:40
  Speaker 3: that's a whole different thing than gambling.
• 21:41
  Speaker 4: It's completely different. Talking a little bit about fear and
• 21:45
  Speaker 4: the fear of losing everything this morning as as opposed
• 21:47
  Speaker 4: to risk, and we're traveling down through that nuance a
• 21:51
  Speaker 4: little bit this morning. You're welcome to give us a
• 21:52
  Speaker 4: call fee like three zero four, three four five fifty
• 21:54
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• 21:56
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• 21:58
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• 22:00
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• 22:05
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• 22:07
  Speaker 4: skip this and get it Todave Allen when his show
• 22:10
  Speaker 4: comes out. Dave Allen's back today, by the way, he'll
• 22:11
  Speaker 4: be back at nine oh six on The Dave Allen
• 22:14
  Speaker 4: Show on five eighty Live. Let's gohead and take a
• 22:16
  Speaker 4: break right now. We have a break we need to take.
• 22:17
  Speaker 4: It's our only one of the program. When we come
• 22:19
  Speaker 4: back plenty more we're going to talk about. John sent
• 22:21
  Speaker 4: me tons of information that we're going to go over
• 22:23
  Speaker 4: that we can talk about as far as the fear
• 22:25
  Speaker 4: of losing everything in different scenarios. However, John would love
• 22:28
  Speaker 4: to help you out. If you have a question about
• 22:30
  Speaker 4: your retirement and how you can retire right, give us
• 22:31
  Speaker 4: a call this morning three zero four three four five
• 22:34
  Speaker 4: fifty eight fifty eight.
• 22:35
  Speaker 3: I'm Del Cooper.
• 22:36
  Speaker 4: You're listening to Retire Right Radio with John Bredett for
• 22:38
  Speaker 4: Fourth Avenue Financial on five EIGHTWCHS, the voice of Charleston.
• 22:41
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• 23:44
  Speaker 6: Your Putnam County Assessor's Office is mandated to ensure your
• 23:47
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• 23:51
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• 24:14
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  Speaker 8: Avenue Financial taking your calls at three O four three
• 24:52
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• 25:11
  Speaker 4: That'll get excited to go in the morning. Sorry, yeah, yeah,
• 25:14
  Speaker 4: ready to go on a Monday morning. You're listening to
• 25:16
  Speaker 4: retire Right Radio right here on the Voice of Charles
• 25:18
  Speaker 4: and five ADWCCHS. Hope you made it through the weekend. Okay,
• 25:20
  Speaker 4: it was a nice weekend for the most part around
• 25:22
  Speaker 4: the Canall Valley. A little bit of rain on what
• 25:24
  Speaker 4: was it yesterday early in the afternoon, but came through it.
• 25:28
  Speaker 3: Okay.
• 25:29
  Speaker 4: If you listen to CINCINNTI reads baseball. This past weekend,
• 25:32
  Speaker 4: Red's had a rough time against the Milwaukee Brewers.
• 25:36
  Speaker 3: Played the Brewers well, but.
• 25:37
  Speaker 4: Then just some defensive misques and some late game anti
• 25:41
  Speaker 4: heroics ruined the Reds on Friday and Saturday. Came back
• 25:45
  Speaker 4: for a x ning win yesterday. So the Reds are
• 25:48
  Speaker 4: back at it tonight on five ADWCHS. And this is
• 25:51
  Speaker 4: one of my favorite things to happen. It happens a
• 25:54
  Speaker 4: few times during the baseball season. It's a West coast trip,
• 25:56
  Speaker 4: which means that I can turn baseball on at like
• 25:58
  Speaker 4: ten o'clock at night much and watch the Reds play.
• 26:01
  Speaker 4: And I kind of like that. You can do things
• 26:02
  Speaker 4: early in the morning, in the evening get it ready
• 26:04
  Speaker 4: to go. Right when it's time to go to bed,
• 26:05
  Speaker 4: you turn onto some West Coast Baseball and see the
• 26:08
  Speaker 4: Reds play the Angels. Though Reds have had their Angels
• 26:10
  Speaker 4: number in the last few years. I think they've won
• 26:12
  Speaker 4: the last eighth straight against the Angels. Reds are looking
• 26:15
  Speaker 4: to make some movement into the wildcard area and so
• 26:17
  Speaker 4: they're going to play the Angels to start the season
• 26:20
  Speaker 4: before visiting the Diamondbacks and then the Dodgers. So not
• 26:24
  Speaker 4: necessarily an easy road trip for the Reds, but none
• 26:27
  Speaker 4: of those teams are playing that great right now, so
• 26:28
  Speaker 4: they have an opportunity.
• 26:29
  Speaker 3: No, you know, I don't. I don't follow the Angels
• 26:32
  Speaker 3: that much, but I always look at the box scores
• 26:34
  Speaker 3: and see who's doing what, and well, Mike Trout is
• 26:38
  Speaker 3: really having some struggles, isn't it. Yeah.
• 26:39
  Speaker 4: I mean he's been hurt so much in his career
• 26:42
  Speaker 4: and it's really crazy when you look at the Angels.
• 26:46
  Speaker 4: They had peak years from both Shoheo Taani and Mike Trout,
• 26:51
  Speaker 4: before Trout really started going through some and they couldn't
• 26:53
  Speaker 4: win anything.
• 26:53
  Speaker 3: Man.
• 26:53
  Speaker 4: They had two of the greatest players of this generation
• 26:56
  Speaker 4: on the same team, and man, they couldn't win anything
• 26:58
  Speaker 4: at all. It is a team's or Yeah, that's for
• 27:00
  Speaker 4: sure right now. And I like Mike Trout a lot.
• 27:03
  Speaker 4: It's kind of it kind of hurts me. I'm not
• 27:05
  Speaker 4: really an Angels fan, but I think he's I think
• 27:07
  Speaker 4: he's a good dude and has been a great player,
• 27:09
  Speaker 4: and it kind of hurts me to see somebody like
• 27:11
  Speaker 4: him struggling just so badly now. It reminds me like
• 27:14
  Speaker 4: King Griffire Junior in some ways King Griffy Junior, just
• 27:16
  Speaker 4: injuries powered up on top of him, can never really
• 27:19
  Speaker 4: end his career the way that you would have liked
• 27:20
  Speaker 4: to see a guy go out. And that's kind of
• 27:21
  Speaker 4: the way I feel about Harper, or not Harper, about
• 27:25
  Speaker 4: Trout a little bit. Yeah, but we're not talking about
• 27:28
  Speaker 4: not really talking about it. We talked about baseball during
• 27:30
  Speaker 4: the they're in a break.
• 27:31
  Speaker 3: Just sort talking about striking out. Yeah, yeah, yeah, right, exactly,
• 27:34
  Speaker 3: that's right.
• 27:34
  Speaker 4: We're talking about the fear of striking out in your
• 27:37
  Speaker 4: investments and how can you be Tony Gwinn and never
• 27:39
  Speaker 4: strike out. That's or at least minimize those strikeouts. And
• 27:42
  Speaker 4: you can help out with that. This morning, you can
• 27:43
  Speaker 4: give us a call three zero four three four five
• 27:44
  Speaker 4: fifty eight fifty eight three zero four three four five
• 27:47
  Speaker 4: fifty eight fifty.
• 27:48
  Speaker 3: We've talked a lot.
• 27:48
  Speaker 4: This morning about what it actually means when there's a
• 27:51
  Speaker 4: correction in the market. Even the worst case scenario, which
• 27:53
  Speaker 4: for most of us listening to this program was the
• 27:55
  Speaker 4: two thousand and eight stock market.
• 27:58
  Speaker 3: What would we call it? I think we called it
• 28:01
  Speaker 3: a recession, or it really was more of a it
• 28:04
  Speaker 3: was more of a financial panic. I mean it went
• 28:07
  Speaker 3: beyond just what what are the earnings of the companies,
• 28:12
  Speaker 3: but people were even concerned about the actual foundations of
• 28:15
  Speaker 3: the of the economy. So like I say, when you
• 28:18
  Speaker 3: look at things, how bad can things get? You know?
• 28:21
  Speaker 3: That was that was by far the worst weed experience.
• 28:24
  Speaker 4: That's when there was the whole That's when people were
• 28:27
  Speaker 4: like protesting Colt the numbers with what CEOs have been
• 28:29
  Speaker 4: paid in the regular people. I mean I get where
• 28:31
  Speaker 4: people are like, man, the CEO pay sir accelerated faster
• 28:34
  Speaker 4: than the leaves, but they're the ones that makes the money,
• 28:36
  Speaker 4: you know, I mean, I don't.
• 28:37
  Speaker 3: Know what you can do.
• 28:38
  Speaker 4: A lot of that is tied to stock right, right,
• 28:41
  Speaker 4: which means that market's done well, right.
• 28:43
  Speaker 3: Which means the market's done well, which means the stock
• 28:45
  Speaker 3: owners have done well. And you know, if you if
• 28:50
  Speaker 3: you don't like the concept of of you know, those
• 28:53
  Speaker 3: folks making all the money, then participate because you can too. Yeah.
• 28:58
  Speaker 4: And it's really odd when you look at what I forgot,
• 29:00
  Speaker 4: what was called for the longest time, Occupy Wall Street, right,
• 29:02
  Speaker 4: so it was Occupy Wall Street. It was really strange
• 29:05
  Speaker 4: when the sort of the nebulous complaints about that movement.
• 29:09
  Speaker 4: I think, like in baseline, you know, just make people
• 29:13
  Speaker 4: aware of, hey, there's some structure and in equity or whatever. Okay,
• 29:17
  Speaker 4: but I mean, what are you really protesting there? Like
• 29:20
  Speaker 4: people in finance? You know, where's the evil there? I
• 29:24
  Speaker 4: don't understand what that whole thing was against. And what's
• 29:27
  Speaker 4: really funny now is there some people that were prominent
• 29:28
  Speaker 4: in that movement that are like like startlingly on the other.
• 29:32
  Speaker 3: Side of it.
• 29:32
  Speaker 4: Just now you know, they're like famously not to the
• 29:35
  Speaker 4: Occupy Wall Street kind of people. Now they kind of
• 29:38
  Speaker 4: came came full circle. It's kind of strange to see
• 29:40
  Speaker 4: some of that.
• 29:41
  Speaker 3: Well, you know, for somebody to be successful, generally they
• 29:47
  Speaker 3: have to be valuable to other people. And you know,
• 29:50
  Speaker 3: you can argue that maybe we're valuing them too much,
• 29:55
  Speaker 3: but you have to do something productive that people want
• 29:59
  Speaker 3: and design. You have to meet somebody's needs to be successful.
• 30:04
  Speaker 3: And as we said before, you know, at some point
• 30:10
  Speaker 3: wealth that gets aggregated like that, it's not about how
• 30:14
  Speaker 3: you live. I mean, after a certain point of money,
• 30:17
  Speaker 3: you can pretty much do the things you want to do.
• 30:19
  Speaker 3: And that number is it's probably way less than the
• 30:24
  Speaker 3: billions of dollars. That is certainly way less than the
• 30:26
  Speaker 3: billions of dollars some people have. So really, what that
• 30:30
  Speaker 3: money is is nothing more. Then I get to allocate
• 30:35
  Speaker 3: it for society. Yeah, right to a degree. I mean, yes,
• 30:40
  Speaker 3: I'm allocating it for myself, but ultimately, if I grow
• 30:45
  Speaker 3: that capital, it's because I'm being more efficient with it
• 30:48
  Speaker 3: in society. The benefits society. It can't not benefit society
• 30:52
  Speaker 3: if it's if it's used properly and if it grows
• 30:58
  Speaker 3: that that's the society is basically saying you're doing the
• 31:03
  Speaker 3: right things. With money, right. I mean, that's when you
• 31:06
  Speaker 3: really break it down, that's that's what's happening there. So
• 31:09
  Speaker 3: it's hard to be really angry at that process because
• 31:13
  Speaker 3: that's what's given really all of us, not just in
• 31:17
  Speaker 3: the United States but even globally now the opportunity to
• 31:22
  Speaker 3: live the way we live. Yeah, I think we have
• 31:24
  Speaker 3: the goods and services that we have that didn't even
• 31:27
  Speaker 3: exist ten, twenty, thirty, forty years ago.
• 31:29
  Speaker 4: That is, that seems such like a sage council. And
• 31:33
  Speaker 4: my impression sort of on the looking back when all
• 31:36
  Speaker 4: of that is that I think people complain about the
• 31:39
  Speaker 4: actions of certain people within the space, but the space
• 31:42
  Speaker 4: itself is what it is. I mean, you can't cast
• 31:45
  Speaker 4: a villainous nature on like quote unquote market. I mean
• 31:48
  Speaker 4: there's you can find any number of characters within the market,
• 31:51
  Speaker 4: just like you can't anywhere in sports or anything else.
• 31:53
  Speaker 4: You have characters that do all kinds of things, and
• 31:55
  Speaker 4: that was just kind of an antle thing.
• 31:58
  Speaker 3: You know, the media content. Yeah, right, and you know
• 32:01
  Speaker 3: that's just their stick, I guess. But like Elon Musk,
• 32:05
  Speaker 3: you know you can say, well, he shouldn't be doing
• 32:09
  Speaker 3: these things, he should be doing these things but the
• 32:11
  Speaker 3: one thing you can say is he thinks about big
• 32:15
  Speaker 3: things and tries to solve them or tries to make
• 32:18
  Speaker 3: them more efficient.
• 32:19
  Speaker 4: Yeah, whatever you think about his foray into politics, and
• 32:22
  Speaker 4: I don't necessarily love it, but he really is closer
• 32:25
  Speaker 4: to modern day Howard Hughes than anybody else that we
• 32:27
  Speaker 4: really have.
• 32:28
  Speaker 3: And some of his ideas may flame out and crash
• 32:31
  Speaker 3: and burn, but that is also the process of achieving things.
• 32:36
  Speaker 3: I mean, most of the people that are successful have
• 32:39
  Speaker 3: failed along the way.
• 32:40
  Speaker 4: Yeah, yeah, that's very true. And going back to Howard
• 32:43
  Speaker 4: Hughes for a second, we already know how kind of
• 32:47
  Speaker 4: strange of an individual he. Imagine how strange we would
• 32:49
  Speaker 4: have considered him if we had social media about it, right,
• 32:52
  Speaker 4: you know, I mean imagine if he was like front
• 32:54
  Speaker 4: and center of everything and you could access his personal
• 32:56
  Speaker 4: thoughts and he could go and tweet at you directly
• 32:58
  Speaker 4: and things like that.
• 32:58
  Speaker 3: You know.
• 32:59
  Speaker 4: I mean, it's hard to tell what we would have
• 33:01
  Speaker 4: thought of the guy. It's just kind of interesting how
• 33:03
  Speaker 4: those things come full circle. But before we get out
• 33:06
  Speaker 4: of here, we talk about this all the time, and
• 33:07
  Speaker 4: this is the bread and butter of what you do.
• 33:08
  Speaker 4: But I have seen this in myself. When we talk
• 33:10
  Speaker 4: about the fear of the marketing different things like that,
• 33:12
  Speaker 4: people tend to think about a stock or something happening.
• 33:16
  Speaker 4: And I've been in a situation We've talked about this
• 33:18
  Speaker 4: before where I know some people in my life that
• 33:20
  Speaker 4: have been overly obsessed with looking at one particular stock
• 33:23
  Speaker 4: and they had a significant amount of money in that
• 33:26
  Speaker 4: at one point in time and didn't really do much
• 33:28
  Speaker 4: to diversify out of it because it was like a
• 33:31
  Speaker 4: gift from family or whatever, so they thought like it
• 33:33
  Speaker 4: was the right thing to do to not change it
• 33:35
  Speaker 4: or whatever. But looking at how and there was a
• 33:39
  Speaker 4: few people in that family that look at it the
• 33:40
  Speaker 4: same way, looking at how they have to evaluate that
• 33:42
  Speaker 4: and they're literally they're up and down, up and down,
• 33:45
  Speaker 4: up and down, because for them it's not a broader
• 33:47
  Speaker 4: role of the market. It is specifically one stock and
• 33:51
  Speaker 4: it's a considerable amount of money in there. Diversification fixes
• 33:55
  Speaker 4: that to a Largetification is how you fix that.
• 33:58
  Speaker 3: I mean, look at the economy and the progress that
• 34:01
  Speaker 3: it makes and the quality of our life that that
• 34:04
  Speaker 3: has risen over time. The process works, but it doesn't
• 34:10
  Speaker 3: work always for individual companies within that sometimes innovation will
• 34:15
  Speaker 3: completely destroy a successful company. I mean, look at Sears Sears.
• 34:22
  Speaker 3: I mean they've built the tallest building in the world
• 34:24
  Speaker 3: at one point, and now they've disappeared because of innovation.
• 34:29
  Speaker 3: You know, Amazon and all these other other players came
• 34:32
  Speaker 3: in and and they innovated and and and Sears did not.
• 34:37
  Speaker 3: They made some bad decisions. And that has a great way.
• 34:40
  Speaker 3: I'd already thought of it like that. They did have
• 34:41
  Speaker 3: the biggest building, I mean that they were everywhere, right, Sorry,
• 34:46
  Speaker 3: but that just kind of struck me. That's true. And
• 34:48
  Speaker 3: now it's gone. Now it's gone, and and it happened,
• 34:51
  Speaker 3: you know, And so people look at that and say,
• 34:52
  Speaker 3: look at you know that, But that is that's creative destruction.
• 34:58
  Speaker 3: The people voted with their and how they spend their
• 35:01
  Speaker 3: money and said, hey, these people have a better way
• 35:05
  Speaker 3: and it's a better experience for me, or I can
• 35:08
  Speaker 3: get things cheaper this way, and elected to put their
• 35:12
  Speaker 3: business elsewhere. So when you hang on to one company,
• 35:16
  Speaker 3: you run the risk of that creative destruction that happens
• 35:21
  Speaker 3: in the economy that you're hanging on to the thing
• 35:24
  Speaker 3: that gets destroyed. And what a great way to put it,
• 35:26
  Speaker 3: What a great explanation. Yeah, but the market as a
• 35:28
  Speaker 3: whole is still working and people are actually growing and
• 35:32
  Speaker 3: making more money because they're using goods and services more efficiently.
• 35:36
  Speaker 4: Although Blockbuster Video was destroyed and cannibalized and really doesn't
• 35:40
  Speaker 4: exist anymore, look at all of the other movie services
• 35:43
  Speaker 4: that are out there that have arisen.
• 35:44
  Speaker 3: From those as streaming everything. But you know it, Blockbuster
• 35:49
  Speaker 3: made a whole lot of sense at the time, but
• 35:50
  Speaker 3: they didn't innovate, they didn't continue they and somebody came
• 35:54
  Speaker 3: and did something that the people, not the companies, street
• 36:00
  Speaker 3: the people elected by using those goods and services. They
• 36:05
  Speaker 3: pick the winner. And so what happens all the capital
• 36:08
  Speaker 3: rushes in uh and aggregates around that to fund that idea.
• 36:13
  Speaker 4: That's that's a great way to put and and when
• 36:15
  Speaker 4: you think about also how companies always find find a way.
• 36:18
  Speaker 4: I mean, I think of like the music industry. The
• 36:20
  Speaker 4: music industry, the people won for a short amount of
• 36:23
  Speaker 4: time in the music industry, like after Napster and all
• 36:25
  Speaker 4: that stuff, and the record labels realized, hey, we need
• 36:28
  Speaker 4: to make our music more accessible and make it available
• 36:31
  Speaker 4: for people. That was great for a very short amount
• 36:33
  Speaker 4: of time, until suddenly you don't own your music anymore, right,
• 36:36
  Speaker 4: you know. Now suddenly it's like they made all this
• 36:38
  Speaker 4: music available for you, but you have to subscribe to
• 36:40
  Speaker 4: listen to your own music every month. Now they're making
• 36:43
  Speaker 4: money hand over fist doing that. Hey, that's great, that's
• 36:44
  Speaker 4: our company if they're doing their thing. But you know,
• 36:46
  Speaker 4: they find a way. You know, they didn't just throw
• 36:48
  Speaker 4: up their hands and be like, well everybody's pirting music
• 36:50
  Speaker 4: now and they and they're going to go and get
• 36:52
  Speaker 4: their own music. They found a way to make music
• 36:54
  Speaker 4: when the other make money on the other side of that.
• 36:56
  Speaker 3: As you said, they're pirating music. It's basically and see
• 36:59
  Speaker 3: that's another reason that a country like the United States
• 37:03
  Speaker 3: and our economy works so well because we do have
• 37:05
  Speaker 3: property rights. Yeah, you know, there's intellectual property rights that
• 37:09
  Speaker 3: we have and and and can defend unlike some people
• 37:15
  Speaker 3: across the pond. That's a good point. That's a good point.
• 37:19
  Speaker 4: It's John Berdbt with Fourth Avenue Financial. More information online.
• 37:22
  Speaker 4: It's fourth Avenue Financial dot com. Fourth Avenue Financial dot Com.
• 37:26
  Speaker 4: You can find the information there. You can also go
• 37:28
  Speaker 4: to the You can also go to the website fourth
• 37:33
  Speaker 4: after Infinnesasional dot com the Facebook address good thing, thank
• 37:36
  Speaker 4: you yeah. Fourth Avenue also go to the You can
• 37:39
  Speaker 4: also go to the website fourth AFNU Interfessional dot com
• 37:43
  Speaker 4: the Facebook address good thing, thank you yeah. Fourth Avenue
• 37:46
  Speaker 4: Financial on Facebook as well. You can just find the
• 37:48
  Speaker 4: page and like it. Phone numbers three zero, fourth seven
• 37:50
  Speaker 4: four six seven Noine seven seven seven four six seven
• 37:53
  Speaker 4: Noine seven seven John. We'll see you next week, all right,
• 37:55
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