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Transcript

Money Monday with Brian James · Brian Thomas

0:00
Speaker 1: And socialist New York City longest shutdown.
0:03
Speaker 2: Challenging Trump's terariff check in Please latest fifty five krs
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Speaker 2: the talk station.
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Speaker 1: Eight oh five.
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Speaker 2: Here a fifty five KRSD talk station. Happy Monday, Monday, Monday,
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Speaker 2: every Monday at eight oh five talk with Brian James
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Speaker 2: Malworth Financial who loans him out for a few segments
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Speaker 2: for a listening audience. Enjoyment and edification. Welcome back, Brian James,
0:26
Speaker 2: Hope you had a nice weekend.
0:27
Speaker 1: I am here again to provide enjoyment and edification. I'm
0:31
Speaker 1: gonna tell my wife that.
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Speaker 2: There you go as I do right day, and we
0:37
Speaker 2: don't have to lament another Bengals loss since it didn't
0:39
Speaker 2: play yesterday.
0:40
Speaker 1: So I wasn't gonna ruin things by bringing that up.
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Speaker 1: But there you become tradition. Brian. It's it's Monday. It's
0:47
Speaker 1: time to gripe, all.
0:47
Speaker 2: Right, your reaction to the apparent shutdown being over. I
0:50
Speaker 2: guess I saw what the Democrats got by way of
0:53
Speaker 2: quote unquote concessions, not a tremendous amount. Notably the return
0:56
Speaker 2: of the federal eployees had been laid off. They never
0:58
Speaker 2: would have been laid off had the government not shut
1:00
Speaker 2: not gotten shut down in the first place, so I
1:01
Speaker 2: don't view that as much of a concession by the Republicans.
1:03
Speaker 2: But kicking the vote on the extension of the supplements
1:07
Speaker 2: and promising a vote in December does not mean those
1:10
Speaker 2: extensions are going to get increased or extended. I firmly
1:14
Speaker 2: doubt that they will. So what does this mean. I
1:17
Speaker 2: think it means more that they get to go home
1:20
Speaker 2: for vacation. They're hoping there's enough time between now and holidays,
1:23
Speaker 2: notably Thanksgiving, to get the air traffic control situation worked out.
1:26
Speaker 2: I'm sure they were hearing from the constituents about that,
1:28
Speaker 2: given the thousands of flights that got canceled. They too
1:31
Speaker 2: want to go home for vacation. But maybe it has
1:33
Speaker 2: more to do with perhaps offering Obamacare subsidies directly to
1:38
Speaker 2: individuals so they can select on the free market what
1:41
Speaker 2: plan they want. Given the massive number of opportunities in
1:43
Speaker 2: the private insurance market to get policies for less money
1:46
Speaker 2: and a policy that's tailored to your specific needs. I
1:49
Speaker 2: think that's frightened them because that means to me, the
1:52
Speaker 2: end of Obamacare.
1:53
Speaker 1: Well, that could be and that would be a major
1:57
Speaker 1: push for Republicans that's gone on. Yes, we're sneaking up
1:59
Speaker 1: twenty year now on Obamacare. Maybe not quite that many,
2:03
Speaker 1: but still that was that's how far back you have
2:05
Speaker 1: to go to when the administration occurred. So the headline
2:08
Speaker 1: is that yesterday the Senate voted sixty forty to advance
2:11
Speaker 1: a funding measure known as a procedural vote. We've done
2:14
Speaker 1: this before. This is how we get away with just
2:17
Speaker 1: extending it out. We're going to kick the can just
2:18
Speaker 1: a little bit longer. That's going to allow some debate
2:21
Speaker 1: and move the bill forward. This is a stop gap
2:23
Speaker 1: funding resolution that's basically going to temporarily fund the government
2:27
Speaker 1: through January thirties. This is what when we see these
2:29
Speaker 1: procedural votes, this is what it is. It's about kicking
2:31
Speaker 1: the can. Let's address the immediate issue without solving the
2:36
Speaker 1: primary issue. So involved in this is reversing the firings
2:40
Speaker 1: and layoffs of federal workers done during the shutdown and
2:43
Speaker 1: guaranteeing their back pay. That's part of the compromise. And
2:45
Speaker 1: then a commitment, this is really the big thing, a
2:47
Speaker 1: commitment to hold a future vote on extending the health
2:50
Speaker 1: insurance premium tax credits. That are available under the Affordable
2:53
Speaker 1: Care Actor Obamacare. But that's no guarantee that those ACA
2:57
Speaker 1: subsidies are going to be extended in this bill. It's
3:00
Speaker 1: got to get through the Senate completely, and then it'll
3:02
Speaker 1: go to the House like allways, and then finally to
3:04
Speaker 1: be signed by President Trump and that will officially end
3:07
Speaker 1: the funding gap. So, you know, I think you're right,
3:09
Speaker 1: that's probably what they're shooting for, But I don't know.
3:12
Speaker 1: I'm looking at these at the the recent results of
3:15
Speaker 1: the midterms here, and I wonder if they're going to
3:17
Speaker 1: have the support that they'll need to push it through.
3:19
Speaker 2: Well, whether they know they have the support or not.
3:21
Speaker 2: We were talking earlier about you know, you kind of
3:23
Speaker 2: have to be a real weed dweller to understand the
3:26
Speaker 2: connection between all these ins and outs and different legislation.
3:30
Speaker 2: We I think collectively can agree most people probably do
3:34
Speaker 2: not have all that information. For example, they wouldn't even
3:36
Speaker 2: understand right now because most people don't that there is
3:38
Speaker 2: a private medical insurance market out there that's thriving, something
3:43
Speaker 2: that offers an alternative to Obamacare. I talk about this
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Speaker 2: with John Rohlman all the time. I speak for him.
3:47
Speaker 2: I do a Weekend show on the whole idea, it's
3:49
Speaker 2: there's a lot of better options out there. Even insurance
3:52
Speaker 2: agents aren't aware of this reality. But if you give
3:55
Speaker 2: people the money themselves, much in the same way, I'm
3:57
Speaker 2: an advocate for letting the money follow this student as
3:59
Speaker 2: opposed to go directly to the to the school. You
4:02
Speaker 2: have a great argument. You're not giving money to the
4:06
Speaker 2: evil insurance companies, and Democrats hate these big insurance companies.
4:09
Speaker 2: They celebrate when the United Way CEO got his head
4:11
Speaker 2: blown off. I mean, you know they're going to have
4:14
Speaker 2: a tough ord of home marketing. The whole idea of
4:16
Speaker 2: not going down this road, even though it would it
4:18
Speaker 2: would be the demise of Obamacare from my perspective, Well.
4:21
Speaker 1: Let me ask you this because maybe you know more
4:23
Speaker 1: than I do about this. Matter of fact, I'll go
4:25
Speaker 1: ahead and say you do. Because you've shared some details,
4:27
Speaker 1: you're kind of educate me a little bit. So my
4:29
Speaker 1: question to you, Brian Thomas is the insurance companies are
4:32
Speaker 1: still all behind this. So if their motivations are you know,
4:35
Speaker 1: profit and all these other things that I that both
4:37
Speaker 1: sides are speaking that they hate, then how does it
4:40
Speaker 1: change when the funding mechanism changes. Aren't we still going
4:43
Speaker 1: to be slaves to companies that are still basically focused
4:47
Speaker 1: primarily on profit margin and not the end results competition.
4:50
Speaker 2: Obamacare is supported. It's the only insurance option out there,
4:55
Speaker 2: government controlled, it may be that is eligible for these subsidies.
4:59
Speaker 2: That way, if you give money to people directly, every
5:03
Speaker 2: insurance company is eligible for subsidies. And there are some
5:06
Speaker 2: far better policies out there, far more competitive, far less
5:09
Speaker 2: out of pocket liability and responsibility. Monthly premiums can be
5:13
Speaker 2: more affordable. It's just knowing how to stack your insurance policies,
5:16
Speaker 2: which there are people well, again like my friend John Roman,
5:18
Speaker 2: who I do advertise for, that do this all the time.
5:21
Speaker 2: Just allowing that subsitty to go really anywhere, like allowing
5:24
Speaker 2: the school funding not just to go to public schools,
5:27
Speaker 2: but to go to any school of the parent's choice.
5:31
Speaker 2: Competition gets built and created. It forces people to run
5:34
Speaker 2: a better well oil machine. It forces policy prices to
5:37
Speaker 2: come down because they're in market competition with everybody else
5:40
Speaker 2: for a change.
5:42
Speaker 1: Is it flexible enough? I mean, I'm sure we don't
5:45
Speaker 1: know these things yet, but I'm just wondering if it's
5:47
Speaker 1: flexible enough to cover and are people in a position
5:50
Speaker 1: yet where they know what they need and how to
5:52
Speaker 1: navigate through it.
5:53
Speaker 2: That's why you have an expert like you in financial
5:57
Speaker 2: planning to answer the questions on behalf of the clients
6:00
Speaker 2: that you represent, Like for example, you are sitting in
6:03
Speaker 2: a fiduciary capacity. For those who are relying on your
6:06
Speaker 2: services to invest their retirement funds. You owe them an
6:10
Speaker 2: obligation to explain all this now if you don't understand it.
6:13
Speaker 2: John Ruhlman is working for you, for example, he has
6:16
Speaker 2: to explain it all and tell you exactly why what
6:19
Speaker 2: happens under this option, what it's ultimately going to cost
6:21
Speaker 2: you factoring in monthly premiums out of pockets. Here, if
6:24
Speaker 2: we look at this option over here in the private sector,
6:27
Speaker 2: we can put it together this way, and here's the
6:29
Speaker 2: real cost benefit or the real cost to you. Here's
6:32
Speaker 2: what you're going to be paying out of pocket. Here's
6:33
Speaker 2: what your exposure is from a liability perspective in your
6:36
Speaker 2: monthly premiums. So it's all spelled out on paper.
6:39
Speaker 1: Yes, I agree. Now here's a weakness in what you
6:41
Speaker 1: just described though, that is not the term fiduciary doesn't
6:44
Speaker 1: exist in health insurance industry. This isn't you know, to
6:46
Speaker 1: bash anyone industry, but it's not a little different.
6:49
Speaker 2: That is correct operates that way. He operates that way.
6:53
Speaker 1: He may choose to. That's one guy, And this is
6:55
Speaker 1: a frustration I've had with the insurance industry for a
6:57
Speaker 1: very very very long time because they're isn't a massive
7:00
Speaker 1: amount of money can you can make by placing a policy?
7:03
Speaker 1: But you don't have to sign up to say I'm
7:05
Speaker 1: doing this for you.
7:06
Speaker 2: Not because if you work for United Healthcare and are
7:10
Speaker 2: selling United health Care policies, the only policy you're going
7:13
Speaker 2: to sell is United Healthcare because you're not going to
7:16
Speaker 2: make any money selling any other premium or another policy.
7:18
Speaker 2: John Roman doesn't work that way. His profit is made
7:21
Speaker 2: working by selling any insurance policy to any individual. The
7:24
Speaker 2: advantage he has is because he's giving you sound advice
7:27
Speaker 2: on the difference between them.
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Speaker 1: I get that it's still a commission based business, and
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Speaker 1: I'm not bashing John at all. It's just the way
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Speaker 1: that that industry has always market sign It.
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Speaker 2: Creates market incentive for others to operate the same way.
7:39
Speaker 2: You're never going to get that with an insurance agent
7:41
Speaker 2: who works exclusively for one company.
7:43
Speaker 1: Yeah, yeah, you're talking about captive versus independent. I totally
7:46
Speaker 1: understand that. I'm talking about the compensation methodology. How do
7:49
Speaker 1: I know for a thousand percent sure that somebody is
7:52
Speaker 1: not picking one insurance company because it's paying the more
7:54
Speaker 1: than another one that could be appropriate for me. That's
7:56
Speaker 1: the risk in any fiduciary versus non fiduciary discussion.
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Speaker 2: Well, knowing John and the team there and what they've
8:01
Speaker 2: done for all my listeners so far, that is a
8:04
Speaker 2: risk we're worthy of taking because that's exactly what he does.
8:08
Speaker 1: I get it. And again I'm not bashing John at all.
8:10
Speaker 1: I'm just saying that's that's a weakness of that industry,
8:12
Speaker 1: and that's what I used to sell life insurance when
8:14
Speaker 1: I was younger and didn't understand this stuff quite as clearly.
8:18
Speaker 1: And that was a huge conflict I saw with the
8:20
Speaker 1: banks that I worked for.
8:21
Speaker 2: Yeah, you were, who are you working for?
8:23
Speaker 1: I am a bank. See it was National City up
8:26
Speaker 1: and Dayton and National City became p and C. And
8:29
Speaker 1: for those who don't know, p and C stands for
8:31
Speaker 1: previously National City. Under Stallo's humor from the day that
8:34
Speaker 1: that was announced.
8:35
Speaker 2: To understand, and I don't mean to turn this into
8:37
Speaker 2: be commercial for him, but he's not the only one
8:38
Speaker 2: of the world that does this. So once we're and
8:41
Speaker 2: you can tell by the comments from our elected official
8:43
Speaker 2: senators on both sides of the ledger, they're really not
8:45
Speaker 2: familiar with this concept at all. They've come brainwashed into
8:49
Speaker 2: the idea that Obamacare can't be replaced and there's no
8:52
Speaker 2: other option out there.
8:53
Speaker 1: Huh huh. Wrong. There is.
8:55
Speaker 2: There are a multitude of them, and quite often it's
8:57
Speaker 2: better to go down that road and check into it,
8:59
Speaker 2: at least look out for your own best interests, because
9:01
Speaker 2: the fool is the one who's.
9:03
Speaker 1: Not all right.
9:04
Speaker 2: We'll get back to your list of topics. Bring Oh
9:06
Speaker 2: wait real quick, I wanted to ask you how this
9:09
Speaker 2: apparent end of the shutdown, not that we're there yet,
9:11
Speaker 2: how's it impacting the market? I'm looking at futures. They
9:14
Speaker 2: haven't really been impacted by this. Was this already baked
9:16
Speaker 2: into the cake?
9:17
Speaker 1: Yeah? I mean, I think with shutdowns, with them, the
9:19
Speaker 1: market kind of always knows that it's never gonna last
9:22
Speaker 1: forever because nobody, no politician is going to benefit and
9:26
Speaker 1: make their constituents happy by completely shutting down permanently and
9:30
Speaker 1: totally walking away. So the market hasn't done a whole
9:33
Speaker 1: lot of anything. Dared. We've seen this before too, you know.
9:36
Speaker 1: And the thing I think that is become the you know,
9:39
Speaker 1: with the new political third rails is the publicly traded markets.
9:42
Speaker 1: We're simply not going to permanently anger the leaders of
9:46
Speaker 1: our largest publicly traded companies because there's literally nothing stopping them,
9:50
Speaker 1: Brian Thomas from picking up and moving to another country
9:52
Speaker 1: that is more favorable to business. That's an extreme outcome,
9:55
Speaker 1: but I think that's always kind of in the background
9:57
Speaker 1: of yeah, we just can't take, you know, take the
9:59
Speaker 1: ball and go home and expect good outcomes. Therefore the
10:02
Speaker 1: market kind of goes, yeah, whatever, we're going to get
10:04
Speaker 1: through this and we can still make a profit during
10:05
Speaker 1: this time.
10:06
Speaker 2: Always the case, Brian James will continue to find out
10:08
Speaker 2: what in the hell is a low cost EFT and
10:10
Speaker 2: how does it relate to four to one ks plus,
10:13
Speaker 2: what's going to happen if we all get two thousand
10:15
Speaker 2: dollars from tariffs and how might that work? And apparently
10:18
Speaker 2: not everybody's taking all of their vacation days. Those topics
10:20
Speaker 2: coming up with Brian James from Allworth Financial. Hope you
10:22
Speaker 2: can stick around and also take care of yourself. It's
10:24
Speaker 2: cold out there. Eight nineteen.
10:27
Speaker 1: If you have care cit talk station.
10:29
Speaker 2: It's Monday. We're doing that money Monday thing with Brian
10:31
Speaker 2: James from Allworth Financial. All right, do you have to
10:33
Speaker 2: break this down for me?
10:35
Speaker 1: Ignorant?
10:35
Speaker 2: I am on a lot of topics. Is having to
10:37
Speaker 2: be one of them, Brian James, that's who bring you
10:38
Speaker 2: on the show. Low cost ETFs in four to one
10:42
Speaker 2: K retirement plan. What's this all about, Brian James?
10:45
Speaker 1: So, yeah, Exchange traded funds are the cool kid on
10:48
Speaker 1: the block now. They kind of have been for about
10:50
Speaker 1: almost thirty years, I think, so they're not brand new,
10:52
Speaker 1: but these are vehicles that are. They're very much like
10:55
Speaker 1: mutual funds in the traditional sense. These are investments that
10:59
Speaker 1: you can own that well, that you buy one thing
11:01
Speaker 1: and it owns a bunch of under things underneath it,
11:03
Speaker 1: and that's not all that crazy to talk about that.
11:06
Speaker 1: The headline today though, is that State Street, which is
11:09
Speaker 1: one of the big providers. They have about one point
11:10
Speaker 1: seven trillion dollars in ETFs and if you ever if
11:14
Speaker 1: you've heard of spiders. That's the S and P five
11:16
Speaker 1: hundred ETF that is a State Street product. But what
11:19
Speaker 1: they're pushing for is to get more ETF like structures
11:23
Speaker 1: into four to one case. There's been a shift for
11:26
Speaker 1: a long time in traditional mutual fund offerings, you know,
11:29
Speaker 1: think Vanguard to change their to offer in an ETF
11:33
Speaker 1: chassis something that their mutual funds already do well. This
11:36
Speaker 1: one's kind of going in the other direction because State
11:38
Speaker 1: Street kind of started with ETFs, so they're pushing their
11:41
Speaker 1: ETF structures into mutual funds. This is really about cost,
11:45
Speaker 1: and I can't I'm kind of scratching my head a
11:47
Speaker 1: little bit to look for other benefits here. The benefits
11:49
Speaker 1: to an ETF over to mutual fund is they tend
11:51
Speaker 1: to be dirt cheap, right in terms of something called
11:54
Speaker 1: an expense ratio. For those who don't know, you're paying
11:56
Speaker 1: for your mutual funds every single day via a little
11:59
Speaker 1: payment that comes out of share price. You'll never see it,
12:01
Speaker 1: but rest assured it's there. It's called an expense ratio,
12:04
Speaker 1: and you want that percentage to be as low as possible.
12:06
Speaker 1: So that's one of the big reasons ETFs are simply
12:09
Speaker 1: technologically more efficient. Therefore they can be cheaper to run.
12:12
Speaker 1: That has triggered this race to the bottom in terms
12:14
Speaker 1: of low expense ratios. But beyond that, the rest of
12:18
Speaker 1: it is tax efficiency. They are much more tax efficient
12:21
Speaker 1: than a traditional mutual fund. However, that does not matter
12:24
Speaker 1: in a four oh one K or an IRA because
12:26
Speaker 1: those are tax sheltered. Anyway, I am not super excited
12:29
Speaker 1: about this headline, so I hope nobody out there is
12:32
Speaker 1: really really hoping their company offers this and is banking
12:36
Speaker 1: their future on it. Is not going to be that impactful.
12:38
Speaker 1: It's simply a big financial institution looking to get a
12:41
Speaker 1: hold of the twelve trillion dollars. Because remember State Street
12:44
Speaker 1: does ets primarily. That means they're not really in a
12:46
Speaker 1: four to oh one k market.
12:47
Speaker 2: They're the ones. They're doing this for their own benefit,
12:49
Speaker 2: is what you're really trying to say.
12:51
Speaker 1: I've been digging this morning trying to figure out why
12:53
Speaker 1: is this a headline? So what a company wants into
12:55
Speaker 1: a market?
12:56
Speaker 2: I get it, But why would they not be a
12:59
Speaker 2: part of the mutual fund options already, because.
13:03
Speaker 1: Well, they don't run mutual funds. They primarily run exchange
13:05
Speaker 1: traded funds. So what they're doing is they're taking their
13:08
Speaker 1: popular exchange traded funds. And they are good ones. I'm
13:10
Speaker 1: not bashing them at all, but they're just not built
13:13
Speaker 1: to be inside a four oh one K. You want
13:15
Speaker 1: to be in a four oh one K, you have
13:16
Speaker 1: to be very flexible, flexible with fractional shares. So because
13:20
Speaker 1: somebody might be putting fifty bucks every paycheck into their
13:23
Speaker 1: four oh one K and then that's got to get
13:25
Speaker 1: split seventeen ways. ETFs are not efficient to be broken
13:28
Speaker 1: down into fractional shares. Mutual funds are built for it.
13:32
Speaker 1: I see, Okay, I'm not excited about this one.
13:34
Speaker 2: Well, then sounds like it.
13:35
Speaker 1: I think you made that point really clear.
13:37
Speaker 2: All right, Well, let's talk real quick here, because there
13:39
Speaker 2: are a couple of talks talk about like not taking vacations
13:41
Speaker 2: and also the two thousand dollars from tariffs. Will do
13:43
Speaker 2: that in the next segment. Real quick here. Why I
13:47
Speaker 2: saw the statistic and while I may not use all
13:49
Speaker 2: of my vacation days, the weird statistic in the article
13:53
Speaker 2: that you have from CNBC. Though the majority have access
13:57
Speaker 2: to paid time off, the report found that twenty three
14:00
Speaker 2: percent of employees didn't even take a single day of
14:03
Speaker 2: vacation even though they had it.
14:06
Speaker 1: Yeah, you know, and I think that's a cultural thing, Brian.
14:09
Speaker 1: I mean there's a lot of people around who still
14:11
Speaker 1: kind of wave that flag. If I'm a hard worker
14:12
Speaker 1: and that's what I'm known to be, what I will
14:14
Speaker 1: speak to is what I see on the other side
14:16
Speaker 1: of that, because I see a lot of people who
14:18
Speaker 1: that was their lifestyle. It's just what they do, knows
14:20
Speaker 1: to the grindstone take Oh sure, wear it like a
14:23
Speaker 1: badge of pride. Those people are not happy during retirement
14:26
Speaker 1: pride they don't know what to do with themselves. Oh,
14:28
Speaker 1: it's very scary. It's scary enough to see somebody who
14:30
Speaker 1: can't afford retirement. It's almost scarier to see the mental
14:34
Speaker 1: impact on somebody who never thought about what that was
14:36
Speaker 1: going to feel like, to have that huge expanse of
14:39
Speaker 1: time to fill.
14:40
Speaker 2: Yeah, you know what, that makes sense. I do know
14:42
Speaker 2: a guy who never missed not only did he never
14:46
Speaker 2: miss a single day of K through twelve education or
14:49
Speaker 2: college education, he never missed a single day of work,
14:52
Speaker 2: and he built up a massive, massive retirement savings just
14:56
Speaker 2: because he never took any time off, he didn't have
14:59
Speaker 2: anything do after work. It's the kind of person you're
15:01
Speaker 2: talking about right now. Work is their life. And from
15:04
Speaker 2: all accounts, I think he's done pretty well in retirement.
15:06
Speaker 2: I guess he found something to do. But yeah, I
15:09
Speaker 2: know people like that.
15:10
Speaker 1: And I hope he did. But I'm sure he had
15:12
Speaker 1: a lot of soul searching moments for that. What is
15:15
Speaker 1: that going to feel like? That first day that the
15:16
Speaker 1: alarm doesn't go off and I don't have to go anywhere.
15:18
Speaker 1: That's great for twenty four hours, but then that next week,
15:21
Speaker 1: especially in February, when it's cold and terrible outside, What
15:24
Speaker 1: am I gonna do today? I terrifying me.
15:26
Speaker 2: Well, and after we're talking with you guys for long
15:28
Speaker 2: enough to realize that I'm at least in a position
15:29
Speaker 2: where I can retire, the whole idea of retirements scares
15:32
Speaker 2: the hell out of me because I don't know what
15:34
Speaker 2: I'm going to be doing.
15:35
Speaker 1: There, you go, that is the big mountain behind the
15:37
Speaker 1: little mountain. The little mountain to climb is the financial part.
15:40
Speaker 1: We all hide behind that and go, I don't have enough.
15:42
Speaker 1: I don't have enough. I guess I'll just keep working.
15:44
Speaker 1: But then one day and it sounds like this happened
15:46
Speaker 1: to you. One day we realize that, Oh my gosh,
15:48
Speaker 1: I do have enough. I can do whatever I want.
15:50
Speaker 1: Oh my god, what do I want to do? I've
15:52
Speaker 1: never thought about that?
15:53
Speaker 2: Yeah, Scarier, it's a scary future for me. I do
15:56
Speaker 2: see sloth and lethargy playing a huge part of that,
15:59
Speaker 2: and that is not good for my health or the relationship.
16:01
Speaker 1: To have goals, at least you defined your goal.
16:03
Speaker 2: I well, that's it. I know what the goals are
16:05
Speaker 2: right now, but these shouldn't be those goals. Find something
16:08
Speaker 2: to do, and why you're at it. Use up your
16:09
Speaker 2: retirement or your vacation days. Might find some good in that,
16:13
Speaker 2: just to exhale for a couple of minutes and take
16:15
Speaker 2: some relaxing time. Brian James will talk about the two
16:18
Speaker 2: thousand dollars maybe coming our way. How's that going to work?
16:20
Speaker 2: And I want a word or two on what you
16:22
Speaker 2: and I might expect by way of investment return over
16:24
Speaker 2: the lifetime of our investment strategy, because I'm not sure
16:27
Speaker 2: I ever expected, nor would I hope to expect, a
16:29
Speaker 2: sixteen thousand percent return. Nancy Pelosi got that one more
16:34
Speaker 2: with Brian James Money Monday coming.
16:36
Speaker 1: Up fifty five a twenty eighty nine.
16:38
Speaker 2: To fifty five K city talk station Brian Time with
16:40
Speaker 2: Brian James from all Worth Financial talking Money Monday and
16:44
Speaker 2: what's the story in this two thousand dollars tariff check.
16:47
Speaker 2: I know that Supreme Court and hearing oral arguments about
16:50
Speaker 2: the legality and authority of Donald Trump to levy taxes
16:53
Speaker 2: or tariff's rather individually, is not looking good for the
16:56
Speaker 2: Trump administration basedup on the comments and questioning of the justices,
16:59
Speaker 2: but that decision hasn't come down yet. In the meantime,
17:02
Speaker 2: tariffs are still out there. Of course, we've entered into
17:04
Speaker 2: some trade negotiations as a consequence of him unilaterally doing
17:08
Speaker 2: the tariffs but putting aside his authority to do it.
17:10
Speaker 2: It has worked, so unringing the bell, if they indeed
17:13
Speaker 2: have to, is going to be extremely complicated matter. But
17:16
Speaker 2: it seems like Trump's trying to pivot, telling the American
17:18
Speaker 2: people that know, you're going to benefit from this, and
17:21
Speaker 2: we're going to give you two thousand dollars more, maybe
17:24
Speaker 2: less directly as a consequence of the billions and billions
17:27
Speaker 2: of dollars we're bringing in in tariffs. Do you see
17:30
Speaker 2: this is actually happening. If the Supreme Court says it's
17:32
Speaker 2: okay for him to do this, I suppose really is
17:35
Speaker 2: a critical element to know whether this is going to
17:36
Speaker 2: go forward.
17:37
Speaker 1: Brian, Well, he's tying it too, as we were talking
17:39
Speaker 1: about earlier. He's tying it a little bit to the
17:42
Speaker 1: health insurance discussion over a dismantling Obamacare. And then you know,
17:46
Speaker 1: why not just give people money and let them choose
17:48
Speaker 1: their own or do or buy an HDTV or whatever
17:50
Speaker 1: they're going to do with their couple thousand dollars, you know,
17:52
Speaker 1: freedom to spend whatever you want. Yeah, And I think
17:55
Speaker 1: he's really just kind of laying the groundwork to make
17:58
Speaker 1: people aware that if you report this, there could be
18:01
Speaker 1: money showing up in your mailbox. I mean, what better
18:03
Speaker 1: way can a politician ever get gain favor for anything?
18:07
Speaker 1: Does this buying votes? Brian James, are you kidding me? Quite? Literally?
18:12
Speaker 1: Money in your mailbox? Right, we can do. Then there's
18:13
Speaker 1: a little bit of history for this. It would effectively
18:16
Speaker 1: work like a stimulus payment, which we've seen before. March
18:19
Speaker 1: of twenty twenty, we had the Cares Act and that
18:21
Speaker 1: was twelve hundred dollars per adult five hundred bucks per
18:24
Speaker 1: child that actually did happen. This was early in COVID,
18:26
Speaker 1: so you know, there was such chaos and people don't
18:28
Speaker 1: really remember it. Then later that year, December of twenty twenty,
18:31
Speaker 1: there was another push for two thousand dollars checks that
18:33
Speaker 1: kind of just came and went. And earlier this year,
18:36
Speaker 1: remember we had the dozed dividend that we were supposed
18:38
Speaker 1: to get that was going to be five thousand dollars
18:40
Speaker 1: per household, except that just kind of went away. When
18:42
Speaker 1: that whole dose thing didn't move the needle very much,
18:44
Speaker 1: Elon Musk got bored with it. So we'll see what
18:47
Speaker 1: comes of this, you know, But I really I feel
18:50
Speaker 1: like it's just greasing this kid, so there will be
18:52
Speaker 1: there will be less of a public hue and cry
18:54
Speaker 1: over the things that he really wants to get done.
18:56
Speaker 1: And because as we've seen very very recently with the
18:58
Speaker 1: snap payments, it only takes one or two judges to
19:01
Speaker 1: throw a monkey wrench in the works in both directions. Right, Yeah,
19:05
Speaker 1: we had it overturned and then it was unoverturned and
19:07
Speaker 1: I don't know where we are now.
19:08
Speaker 2: It's been They were ordered to pay one hundred percent
19:10
Speaker 2: of the SNAP benefits beginning today unless the Supreme Court
19:14
Speaker 2: pronounces otherwise. Now, they allowed Trump to move to keep
19:18
Speaker 2: things in place with the freeze on Friday evening, but
19:21
Speaker 2: that was a single judge saying we're going to leave
19:23
Speaker 2: its status quo until this decision comes out. This decision
19:26
Speaker 2: was what came out last night, and the Appellate Court
19:29
Speaker 2: said you got to pay one hundred percent of the
19:30
Speaker 2: SNAP benefits, which I think helped the Republicans in these
19:33
Speaker 2: negotiations yesterday. Because you've taken assuming that court order stayed
19:37
Speaker 2: in place, maybe the administration doesn't appeal it, then all
19:41
Speaker 2: of the people who are going to get harmed because
19:43
Speaker 2: of SNAP stopping no longer can complain. So there's a
19:46
Speaker 2: giant chunk of people forty million or so who no
19:49
Speaker 2: longer care about the shutdown as having impacted their bottom line.
19:52
Speaker 2: So you've taken that out, leaving I guess those who
19:55
Speaker 2: are traveling on airplanes and looking forward to holidays to
19:57
Speaker 2: be screaming and yelling. And that includes a lot broad
20:00
Speaker 2: a number of people who actually might influence elections, including
20:02
Speaker 2: corporate business owners, individuals with enough money to go on
20:05
Speaker 2: vacation and actually utilize air traffic. That's my theory on
20:10
Speaker 2: that matter. No, I think I think you're probably right.
20:12
Speaker 1: What's the largest segment of the population that's going to
20:14
Speaker 1: be the loudest, and it's the ones that are getting
20:16
Speaker 1: directly hurt by Well you've just taken that away, and
20:18
Speaker 1: a little sugar on top, here's a chance at a
20:20
Speaker 1: two thousand dollars check. Now he has also indicated this
20:23
Speaker 1: is this is going to exclude high income individuals. I'm
20:26
Speaker 1: not sure exactly what high income means. Who knows this
20:29
Speaker 1: is None of this isn't writing yet. So we'll see
20:30
Speaker 1: what comes down the pipe. And we have talked about
20:32
Speaker 1: this before again that that whole doze dividend. Here's the
20:35
Speaker 1: thing that his government is doing that's going to result
20:37
Speaker 1: in money in your pocket. While that didn't exactly happen.
20:39
Speaker 1: So we're going to see, you know, here's the thing
20:41
Speaker 1: the government's doing. We're bringing in tariffs and here's a
20:43
Speaker 1: chunk of the action for taxpayers. Yeah, you know, does
20:47
Speaker 1: allow through and see what happened? That was in the detail.
20:49
Speaker 2: Because I would think money flowing into government with through
20:51
Speaker 2: tariffs or taxation or any other mechanism would be part
20:54
Speaker 2: and parcel of the power of the perse And unless
20:57
Speaker 2: Congress and acts legislation to allow the return one of
21:00
Speaker 2: these tariffs to us in any way, shape or form,
21:02
Speaker 2: that it's going to require congressional action and approval.
21:04
Speaker 1: You would think, you would think. And with all the
21:06
Speaker 1: talk too, just over this administration, the prior administration, all
21:10
Speaker 1: the bluster about the deficit, I would love to see
21:15
Speaker 1: one ounce of these dollars go toward paying down the
21:17
Speaker 1: debt we already have, yes, as opposed to encouraging us
21:20
Speaker 1: to go make more of it.
21:21
Speaker 2: Thank you, Brian James. You and I in agreement completely
21:24
Speaker 2: on that. That's a pesky challenge for generations to come
21:27
Speaker 2: that death.
21:27
Speaker 1: We wish there were more of us in agreement. Really,
21:30
Speaker 1: we'd rather have our checks in our mailbox. All right.
21:31
Speaker 2: Well, I'm an agreement on the idea of earning sixteen
21:34
Speaker 2: thirty percent rate to return on my investments.
21:36
Speaker 1: Brian James.
21:36
Speaker 2: That's not a regular occurrence with all Worth Financial, is it?
21:39
Speaker 2: Because that sounds extraordinary to me. I mean, I'm of
21:41
Speaker 2: the mind that you know I should expect around eight percent,
21:45
Speaker 2: hopefully more. But I Nancy Pelosi back in eighty seven,
21:50
Speaker 2: which she took off as head roughly eight seven hundred
21:53
Speaker 2: and eighty five thousand dollars total portfolio between her and
21:55
Speaker 2: her husband. She announced the retirement and apparently she now
21:58
Speaker 2: has one hundred and thirty million thirty three million she's
22:01
Speaker 2: sitting on, which was calculated as a sixteen nine and
22:04
Speaker 2: thirty percent raady to return the Dow Jones over the
22:08
Speaker 2: same period of time two thousand, three hundred. Now, they
22:10
Speaker 2: didn't put the SMP in there, but I can't imagine
22:12
Speaker 2: the S and P being closer to sixteen thousand than
22:14
Speaker 2: twenty three hundred.
22:16
Speaker 1: Well, yeah, story, let me put pen to paper. No,
22:18
Speaker 1: the S and P five hundred is not close to
22:20
Speaker 1: sixty percent. They'll carry the one and then this goes
22:23
Speaker 1: over here and no, that's not a close number. Yeah.
22:27
Speaker 1: And so it is a very very very lucrative gig
22:30
Speaker 1: to be tied to the US Congress because you get
22:33
Speaker 1: a whole boatload of insider information and there's just not
22:36
Speaker 1: a lot of law. We just don't have the structure.
22:38
Speaker 1: We've never had the political will to stop this from happening,
22:41
Speaker 1: because of course, the ones who would decide to make
22:43
Speaker 1: the laws are the ones who would who would be
22:45
Speaker 1: hurt by them. So guess what's not gonna happen anytime?
22:48
Speaker 2: Fox watching the hen House there, Brian James, although you
22:50
Speaker 2: and I are not allowed to inside trade. Yeah, well exactly,
22:53
Speaker 2: we would get that thrown into jail if we insider trade, correct.
22:57
Speaker 1: I mean like when we we we managed portfolios. Here,
22:59
Speaker 1: we move exchange ttraded funds around there. There's a no
23:02
Speaker 1: fly list, but advisors are not allowed to touch this
23:04
Speaker 1: ETF or at that ETF because we're about to move
23:06
Speaker 1: money around at a portfolio level for our entire firm.
23:10
Speaker 1: But that's not does not apply if you are in
23:13
Speaker 1: a member of Congress. Now this does both. Pelosi's numbers
23:16
Speaker 1: are ie popping, for sure, and she's always had her
23:17
Speaker 1: hands in a whole lot of things. She's not the
23:19
Speaker 1: only one. I got a list here all the different names,
23:21
Speaker 1: and they're both flavors. It's on both sides of the aisles. Absolutely,
23:25
Speaker 1: game works happens on both sides. It would be great
23:27
Speaker 1: if we would put a law in place, and we did.
23:29
Speaker 1: There's the Stock Act that came out in twenty twelve
23:32
Speaker 1: that limits the some limit somewhat how much these people
23:35
Speaker 1: can do, but the fine can be like two hundred bucks,
23:38
Speaker 1: and nobody's ever been prosecuted under it. That's why you've
23:42
Speaker 1: never heard of it.
23:42
Speaker 2: Let's see two hundred and fifty bucks or sixteen thousand
23:46
Speaker 2: percent return. I'm gonna go with the ladder, knowing full
23:49
Speaker 2: well that I can cover the nut on the any
23:51
Speaker 2: any against net that out.
23:53
Speaker 1: If you net out the two fifty dollar fee, gonna
23:55
Speaker 1: work in your favor.
23:57
Speaker 2: Brian James. Glad we got in with a little bit
23:59
Speaker 2: of smile on her face and a couple of points
24:01
Speaker 2: on agreement.
24:01
Speaker 1: Brian James.
24:02
Speaker 2: Look for to next Monday, another edition of Monday Monday.
24:04
Speaker 2: I appreciate it all worth loaning you out for the segments.
24:06
Speaker 2: I hope you have a great week. My friend.
24:07
Speaker 1: We're gonna have to talk about the Bengals next Monday.
24:09
Speaker 2: That we will, good or bad. It'll be a topic
24:12
Speaker 2: right out of the gate.
24:13
Speaker 1: Definitely be acknowledged.
24:14
Speaker 2: Thanks for the football game, Yes there was. Thanks brother,
24:17
Speaker 2: we'll talk say thirty six right now, fifty five? Care
24:19
Speaker 2: to see the dox lation talkstation? Joe opened the phone line.
24:22
Speaker 2: Somebody wants