1/16/26 Hollywood Homes, High-Tech Cars & Real-World Retirement Talk

The Moneywise Radio Show and Podcast Friday, January 16th BE MONEYWISE. Moneywise Wealth Management I "The Moneywise Radio Show & Podcast" call: 661-847-1000 text in anytime: 661-396-1000 website: www. MoneywiseGuys.com facebook: Moneywise_Wealth_Management LinkedIn: Moneywise_Wealth_Management

• 0:00Speaker 00

  Live from the basement inside the historic Woolworths building in downtown Bakersfield.

• 0:05Speaker 01

  Call or text in at 661-396-1000.

• 0:29Speaker 02

  Securities offered through LPL Financial, member FINRA/SIPC. Investment advisory services offered through LPL Financial. LPL Financial and MoneyWise Wealth Management are independently owned and operated.

• 0:37Speaker 00

  Now, let's start the MoneyWise Show.

• 0:41Speaker 01

  Hey, welcome to the Friday edition of the MoneyWise Show. We're live from the basement of the historic Woolworths building in downtown Bakersfield. I'm loving the digs, Steven.

• 0:52Speaker 00

  You're a little closer to the mic, you're good.

• 0:54Speaker 01

  I was wondering if I should do the...

• 0:56Speaker 00

  Just a little bit.

• 0:56Speaker 01

  Test, test. Popcorn, popcorn.

• 0:58Speaker 00

  Just a little bit. Pull that mic, you can go.

• 1:01Speaker 01

  There we go.

• 1:01Speaker 00

  There we go.

• 1:02Speaker 01

  Popcorn, popcorn.

• 1:03Speaker 00

  Siblings, siblings.

• 1:06Speaker 01

  God, I just heard Gero right there.

• 1:09Speaker 00

  I was hoping it was Tom Hanks, but okay.

• 1:11Speaker 01

  But no, Gero did the greatest, yeah, but...

• 1:15Speaker 00

  He would sing it.

• 1:16Speaker 01

  He would, he would. He would sing that. And then I always remember the popcorn, pop, pop, popcorn.

• 1:24Speaker 00

  Good old G money.

• 1:26Speaker 01

  Oh, yeah. Missed that man. Welcome to the MoneyWise Show, live from the basement. The digs are beautiful, the mood lighting is great. I just think we need a hookah down here. The little lamps are a little, little, little hookah-esque.

• 1:39Speaker 00

  It's in the mill.

• 1:40Speaker 03

  Oh, it's in, okay.

• 1:41Speaker 00

  It's on its way.

• 1:42Speaker 01

  It's in the Amazon order? All right, it's in the Amazon order.

• 1:46Speaker 03

  The carpet too is actually pretty nice.

• 1:47Speaker 01

  Yeah, the little rug is nice.

• 1:48Speaker 00

  I know they're working on some decor that will hang from the, from the ceiling right there.

• 1:54Speaker 01

  Okay.

• 1:56Speaker 01

  Okay, yeah, maybe a MoneyWise sign eventually. Might be nice. Now, for the next hour, you're here on K G E O Money Talk. Hey, it's sports talk the rest of the day, but for right now, for the next hour, you get money talk with Justin Leland and my host, co-host here.

• 2:14Speaker 03

  Frank Lee.

• 2:15Speaker 01

  That be Frank.

• 2:16Speaker 03

  Yeah, Frank.

• 2:17Speaker 01

  Frank the Tank. Frank the Tank.

• 2:19Speaker 03

  I think I've officially earned that name from Chris.

• 2:23Speaker 01

  Yeah.

• 2:23Speaker 03

  Yeah, yeah, I think he's finally, finally succumbed to it and be like, yes, you are the tank.

• 2:29Speaker 01

  You Frank the Tank.

• 2:30Speaker 03

  I am Frank the Tank.

• 2:31Speaker 01

  1230 a.m., 101.1 FM, and always streaming on the interwebs at moneywiseguys.com. Got a couple of questions that popped into our inbox here, but you can call or text into the show anytime, 24 hours a day, 661-396-1000, 661-396-1000. We do have a couple of questions that came in over the last few hours, and so we're going to go ahead and get to those in a little bit. But please, if you'd like to listen to this show or any of our award-winning, I, award-winning podcasts, shows, by all means, get any of our past programs on any of the podcast streaming devices that you use, by all means.

• 3:17Speaker 01

  But we're going to get into it. We're going to do what we do after we've already kind of like, you know, loved on the show and loved on the, on the digs here. Frank, tell us what happened in the markets today.

• 3:28Speaker 03

  Yeah, not, not a lot of activity, although we're seeing a little bit of red across the board. Dow's down about 17 basis points, the S and P 6, Nasdaq 6. The Russell's 2000, though, you know, up about 12 basis points.

• 3:44Speaker 01

  Right.

• 3:44Speaker 03

  I mean, not, not too bad. It's, it's, there's a lot of headwind in the markets.

• 3:50Speaker 01

  Yeah.

• 3:50Speaker 03

  Obviously, you know, there's not a lot of movements, a lot of kind of waiting to see what, what news are coming out, you know, anticipation, so.

• 4:03Speaker 01

  And I would say, you know, one of the things that I think is maybe, you know, the markets are the markets and, and human beings are, by definition, irrational beings in a lot of ways, and.

• 4:19Speaker 01

  The Dow Jones, we call it the dumb Dow for a reason, right Stephen? Da da da.

• 4:25Speaker 03

  Da da da.

• 4:25Speaker 01

  Da da da dumb Dow. It's been sitting at forty nine thousand for the last week, week and a half. Okay. Forty nine thousand and change. I would say a lot of this, I mean, yes, there's headwinds and there's other things going on in the markets. But I also think that we as humans have this emotional baggage when it comes to seeing big numbers. And so investors are looking at that fifty thousand number. And we've come right up close to it and every time we've gotten close to it, it backs off and bounces below. Right? We haven't even breached fifty thousand yet, right? Every time we get, we got up to about forty nine six, forty nine six fifty four.

• 5:09Speaker 01

  We get to these numbers and intra day and it, and it, it gets, it gets within thirty points or a hundred points of that. And it just, it kind of drops again. So I would be interested to see, you know, the first time that we close above fifty.

• 5:25Speaker 01

  What happens?

• 5:27Speaker 01

  Right? The technicians will be in there and all, you know, but I think it's gonna be, it'll be an interesting, you know, milestone. Cause again, you know, it doesn't mean anything. It's just a number, just like any other number, but we always assign some kind of value to a, a click do. You know, my car just clicked over a hundred thousand miles. Still the same car it was at ninety nine thousand miles, right? It's the same thing, I think with the Dow. And so we're looking at it and then we're on that fifty thousand watch. Maybe it'll happen next week. Who knows? Who knows? We've been waiting for a week and a half at this point.

• 6:05Speaker 03

  Yeah. I mean, needless to say, like we're, we're in uncharted territory regardless whether the Dow Jones, the, the S and P and Nasdaq's being record highs and breaking those records. It's like, okay, uh, I don't know, this, this kind of all seems familiar. It's like, are, are we expecting something, you know?

• 6:24Speaker 01

  Well, and you. There's always more records than there are non-records, right?

• 6:29Speaker 03

  Yeah.

• 6:30Speaker 01

  It's one of those things where it's like as we're continued that the stock market continues to appreciate in value. Every time it closes at a new high, guess what? That's a new record.

• 6:40Speaker 03

  Yeah.

• 6:41Speaker 01

  Right? Until we have a pullback.

• 6:43Speaker 03

  Mm hmm.

• 6:43Speaker 01

  And then eventually we are done with that pullback and it comes back to where it was. And guess what? We're having all time highs again. That's kind of the by design, right? So I don't know. I I I'm looking forward to what happens when it actually does hit 50 because it'll just be an interesting. It'll be an interesting study in investor behavior is is what I'm looking at.

• 7:06Speaker 03

  Oh, right, right, right.

• 7:07Speaker 01

  What are people gonna do with that information? You know, similar similar to what we saw when when Bitcoin hit 100,000 for the first time.

• 7:17Speaker 03

  Right, right.

• 7:17Speaker 01

  Right? It's still worthless, but to other people, they think it's worth $100,000. Right? So but you would have as soon as it hit 100,000. We had a ton of I I I knew a ton of people that all of a sudden started talking about Bitcoin who had never talked about Bitcoin before. Right? I heard it's a well, it became part of the news and so therefore it becomes part of the the conversation piece, right?

• 7:45Speaker 03

  Well, to touch on that, because I I know I was following this the news pretty recently with cryptocurrency and and the the law that was being pushed to be passed. I I forget what the

• 7:59Speaker 01

  The name of the law.

• 8:00Speaker 03

  The name of the law, the Genius Act? Or no, no.

• 8:03Speaker 01

  That law is named after you.

• 8:06Speaker 03

  I wish.

• 8:08Speaker 03

  Not not a genius by any means, but it it actually fell through in the Senate voting and I I think Brian Armstrong, the CEO of Coinbase is like just talking about it because he's been working with lawmakers for for years on getting some type of regulation passed for the use of cryptocurrency.

• 8:29Speaker 01

  Right, because I mean, right now, it's it's very much the wild, wild west. You can you can create a coin tomorrow. You know, and and put it on the on the market and what's backing it up?

• 8:41Speaker 03

  Mm hmm. Exactly.

• 8:42Speaker 01

  Right? So, yeah, having some regulation on that would be amazing and good, but yeah, similar to, you know, Bitcoin, it got to a hundred thousand. Everybody started talking about it again.

• 8:52Speaker 03

  Yep.

• 8:52Speaker 01

  Uh, then it dipped back down and I think it's at what ninety at this point?

• 8:55Speaker 03

  Yeah, yeah.

• 8:55Speaker 01

  It was around ninety.

• 8:56Speaker 03

  Right, bro.

• 8:57Speaker 01

  You know, is what it is. We'll get there. Um, speaking of valuations, Stephen, we're we're not that far off from age, but when you were growing up, did you watch The Fresh Prince of Bel Air?

• 9:12Speaker 00

  Of course.

• 9:13Speaker 01

  Of course, right? Uh, did you ever think you might be able to own that house?

• 9:18Speaker 00

  I mean, I I I dreamed about it. I also thought I was gonna be an NBA basketball player, but I stopped growing.

• 9:25Speaker 01

  You stopped at five eight and then left it left it alone, huh?

• 9:28Speaker 00

  But yeah, I I totally thought, oh, I'm gonna be living in a house in Bel Air.

• 9:33Speaker 01

  Mm hmm, mm hmm. I'm gonna be, you know, throwing Benjamins around at all the time and, uh, but hey, that house is actually for sale.

• 9:41Speaker 00

  Really?

• 9:42Speaker 01

  Yeah, The Fresh Prince of Bel Air, that house.

• 9:44Speaker 00

  Cheap, right?

• 9:45Speaker 01

  It's it's a

• 9:46Speaker 03

  Super cheap.

• 9:46Speaker 01

  It's couch, it's couch cushion money.

• 9:48Speaker 03

  Yeah. So Stephen, you pull a thousand from from your bank, I'll pull a thousand and then we'll have Justin come up with the rest.

• 9:54Speaker 00

  Sounds good.

• 9:55Speaker 01

  Yeah.

• 9:55Speaker 00

  I know his wife Carrie will choke me, but

• 9:58Speaker 01

  She will, she will beat you within an inch of your life with your own arms.

• 10:03Speaker 00

  I I believe it, too.

• 10:05Speaker 01

  Uh, thirty million dollars.

• 10:06Speaker 00

  Really?

• 10:07Speaker 03

  Yeah.

• 10:07Speaker 01

  It's I actually, I when I looked at, I was like, where it's at and, you know, how what it looks like. I mean, it's a it's a beautiful house. I thought it would be more.

• 10:17Speaker 00

  I personally thought it was a fake home.

• 10:19Speaker 01

  No, it was not. It was

• 10:21Speaker 00

  I thought it was all just fake, some universal set.

• 10:24Speaker 01

  Like a sound, sound recording studio, uh, like the Golden Girls.

• 10:28Speaker 00

  Does it say how many rooms or bathrooms?

• 10:30Speaker 01

  Uh, where is it? Let's see here. So it like it really matters to you, Stephen, right? Uh, if you have tens of millions of dollars. So this this house was built in nineteen thirty seven. And it's listed for sale for the first time in basically 50 years. Um, it's a 10,000 square foot house on a $38,000, a 38,000 square foot lot. Um, yeah, it's wow.

• 10:57Speaker 00

  Thirty million dollars.

• 10:58Speaker 01

  Thirty, thirty mil.

• 10:59Speaker 03

  Can't beat that.

• 11:00Speaker 00

  And I mean, I, I've seen a lot of, especially recently, I don't know if it's just because people are trying to get out of California or just like movie sets or homes that are in films or TV shows. And I've seen a couple of them. I even saw a story recently from Macaulay Culkin saying that, uh, they sold the, the house from Home Alone.

• 11:23Speaker 01

  Really?

• 11:24Speaker 03

  Oh.

• 11:24Speaker 01

  That's right.

• 11:25Speaker 00

  They were trying to turn it into an Airbnb and they would pay him if he would show up during the holidays.

• 11:31Speaker 03

  What?

• 11:32Speaker 00

  He's like, I stepped out of it, but you know, if you want to be an investor, I would jump in with you.

• 11:37Speaker 01

  Nice. So the fictional house in, uh, the Fresh Prince of Bel Air is said to have had 10 bedrooms and four and a half bathrooms. During the, during the shows, the real house is actually six bedrooms and seven and a half bathrooms.

• 11:52Speaker 03

  Uh, no deal.

• 11:53Speaker 00

  Yeah.

• 11:54Speaker 01

  I need those extra bedrooms. I need those extra.

• 11:57Speaker 03

  Want to be able to sleep in every different room for a month.

• 12:00Speaker 01

  For a month, right? Just, you know.

• 12:03Speaker 00

  Thirty million dollars.

• 12:04Speaker 01

  So, yeah, uh, just, yeah, not too, not.

• 12:07Speaker 03

  Yeah, not too bad.

• 12:08Speaker 00

  Or have you seen the, uh, the lady that has the house from Breaking Bad?

• 12:11Speaker 03

  Yeah, I was gonna, I was gonna say that.

• 12:13Speaker 01

  In Albuquerque, it's a real house, yes.

• 12:15Speaker 00

  She's been upset because people are throwing pizzas on the roof.

• 12:18Speaker 01

  They've been doing it for years.

• 12:20Speaker 03

  Oh my God.

• 12:21Speaker 01

  So I saw that it was, yeah, I saw this. And so what she did, didn't she put like a, a wrought iron fence around the property and still people were still jumping the fence?

• 12:30Speaker 00

  Yeah, she's hosing people off on, on video.

• 12:33Speaker 01

  Right. Hoof a pizza like a frisbee.

• 12:35Speaker 00

  Yeah, people won't go away.

• 12:38Speaker 01

  At that, at that point, it's like, I would, I would seriously consider raising the house to the ground and, and building something else that doesn't resemble that house at all. And it's just the same address, but it's not the actual house.

• 12:52Speaker 00

  Well, do you think that helps when they do try to sell it? I mean, does it help with value?

• 12:56Speaker 03

  I don't know.

• 12:57Speaker 01

  I'm wondering about that.

• 12:58Speaker 03

  I, I don't think, oh, so, but to your point, I don't think it would because now that I know that, it's like, why would I want to buy that house if I'm gonna have all this trouble?

• 13:05Speaker 01

  If I'm gonna have cheese pizzas on my roof every day.

• 13:07Speaker 03

  Yeah, right? I'm gonna have to clean it off, you know, get on top of the roof and everything.

• 13:11Speaker 01

  It's like, it's like the, like the Brady Bunch house or whatever, right? I mean, that's, that's an iconic house as well, but it's like, I've seen those houses for some, from time to time, they come up for sale. Now, it's not the real, they didn't film inside the house. It's the facade they use for when they're doing the B-roll, right? Is what it is.

• 13:27Speaker 00

  Yeah.

• 13:28Speaker 01

  But in our minds, it's still that show.

• 13:31Speaker 00

  Yeah, of course. I mean, it's in the intro. Every time you watch the show, you see it.

• 13:35Speaker 01

  Every time you watch Golden Girls, there's the house.

• 13:38Speaker 03

  Yeah.

• 13:38Speaker 01

  I know, I know Steven is a big Golden.

• 13:40Speaker 00

  Not as close with the age, man. I don't know.

• 13:42Speaker 01

  Steven is a big Golden Girls fan.

• 13:44Speaker 00

  Oh, of course.

• 13:44Speaker 03

  What's that, what's that one other show in San Francisco?

• 13:47Speaker 00

  Full House.

• 13:48Speaker 03

  Full House, yes, yes, yes.

• 13:49Speaker 01

  Fuller House.

• 13:50Speaker 03

  Fuller.

• 13:51Speaker 00

  And I don't think that was ever a real home.

• 13:53Speaker 03

  Oh, it wasn't?

• 13:53Speaker 01

  The Brownstone?

• 13:55Speaker 00

  The Brownstone?

• 13:55Speaker 01

  Or the, the one that they had for Full House? They had, they still have the B-roll of outside, but there's no way.

• 14:01Speaker 00

  Yeah.

• 14:01Speaker 01

  Like architecturally, you look at the house on the outside, there's no way the house was that big on the inside.

• 14:05Speaker 03

  What? You told me it was fake?

• 14:08Speaker 00

  While we're on the topic, I, I heard an interview with Charlie Sheen and he was talking about the, the two and a half man home.

• 14:14Speaker 01

  Uh huh.

• 14:14Speaker 00

  And he said, that is, that is totally fake.

• 14:16Speaker 01

  Fake, fake, fake, fake.

• 14:17Speaker 00

  He said, watch the intro again and you see the fake waves.

• 14:21Speaker 01

  Uh huh.

• 14:21Speaker 00

  He said, that, that was all fake. I'm sorry, guys.

• 14:24Speaker 01

  The whole thing. I also look at like, uh, like Seinfeld, right? Cause they have the, the hallway outside, but his, the way, if you watch it, the way the front door comes into his apartment is at an angle, there's no way that that apartment exists on that hallway.

• 14:39Speaker 03

  Oh, interesting.

• 14:40Speaker 01

  Right?

• 14:40Speaker 00

  I think it would get old after about a month or two, I get the, the Fresh Prince home, I do the song every time I come home.

• 14:47Speaker 01

  Right.

• 14:47Speaker 00

  I'm like, okay.

• 14:48Speaker 01

  Okay.

• 14:49Speaker 00

  This house is way too big for me.

• 14:50Speaker 01

  You'd be wearing the hat backwards.

• 14:52Speaker 00

  Have a taxi drop me off.

• 14:54Speaker 01

  Yeah, exactly.

• 14:55Speaker 03

  Wasn't there like a spin off or a remake of that show?

• 14:59Speaker 00

  Yeah, they, I believe it recently they did and it's um, it's more serious. It's more of a drama.

• 15:05Speaker 01

  Oh, that kills the vibe.

• 15:07Speaker 03

  Yeah.

• 15:08Speaker 00

  It was like if The Fresh Prince was living in our times now.

• 15:12Speaker 01

  Eh.

• 15:13Speaker 00

  I tried to watch it. It wasn't.

• 15:14Speaker 01

  Yeah.

• 15:15Speaker 00

  It wasn't the same.

• 15:16Speaker 01

  Not, not it. Hey, we're gonna take a quick break, but remember last week, Stephen, we talked about how Volkswagen and their AI and their self-driving vehicles were gonna require a subscription. Somebody else picked up on it. We'll talk about it when we come back.

• 15:35Speaker 04

  Now, this is a story all about how my life got flipped, turned upside down, and I'd like to take a minute to just sit right there. I'll tell you how I became the prince of a town called Bel Air.

• 15:46Speaker 01

  Welcome back. How did I know you were gonna throw that in on the bumper rotation?

• 15:50Speaker 03

  He called it.

• 15:51Speaker 01

  I called it.

• 15:51Speaker 00

  It was either that or Breaking Bad, and trust me, that was a hard.

• 15:55Speaker 01

  A hard choice between the two.

• 15:59Speaker 01

  Oh, man.

• 16:00Speaker 00

  I just wanted to look at the house again.

• 16:01Speaker 01

  I know, right? It is a gorgeous house.

• 16:03Speaker 00

  Thirty million, huh?

• 16:04Speaker 01

  Thirty mil.

• 16:05Speaker 00

  I don't think so.

• 16:06Speaker 01

  No?

• 16:07Speaker 00

  I'll put that back into my retirement.

• 16:10Speaker 01

  And you know, and it, the thing is that like we were talking off air and Frank and I were talking about how it like, uh, you're, you're watching these shows and as a kid, you don't recognize that these things are not real, right? And so, you know, uh, you're watching any of these movies or TV shows or whatever. Frank literally thought that the Star Trek Enterprise was a real thing.

• 16:29Speaker 03

  Okay, he's blowing that out of proportion.

• 16:31Speaker 00

  It's, it's not.

• 16:32Speaker 03

  Oh, yeah, right? It's not, right?

• 16:34Speaker 00

  It's killing dreams on Friday. Right on, Justin.

• 16:36Speaker 01

  Right?

• 16:36Speaker 00

  Right?

• 16:37Speaker 03

  Come on, Star Wars, man.

• 16:38Speaker 00

  Star Wars, Star Trek, all that stuff.

• 16:40Speaker 03

  You have to let people believe.

• 16:41Speaker 00

  But I will say, from TV shows, one, uh, like Hot Ones, that is real.

• 16:47Speaker 01

  Yeah.

• 16:47Speaker 00

  That is real. We just got the new addition and, uh, it's a, it's a bit spicier, Frank. I'm gonna stay away from this one now.

• 16:54Speaker 03

  Okay, yeah, no, we should, we should definitely do that. I wanna do that with guests.

• 16:58Speaker 01

  Honestly, we have.

• 16:59Speaker 03

  And we do rapid fire.

• 17:00Speaker 01

  We have the kitchen.

• 17:01Speaker 03

  Yes, we do.

• 17:02Speaker 01

  We have the catering. We can do the wings.

• 17:03Speaker 03

  Let's do it.

• 17:04Speaker 01

  We can do the wings and, uh, let Chef Richard do it.

• 17:08Speaker 00

  I'll talk to Richard.

• 17:09Speaker 03

  Yes.

• 17:09Speaker 01

  He'll dose them up and then.

• 17:10Speaker 03

  We have to dose it. We can't do that, you know, a little bit of dam, yeah.

• 17:13Speaker 01

  Well, not only dose it, but like make it random. Like.

• 17:18Speaker 00

  Oh, so you don't know.

• 17:19Speaker 01

  We don't know which one you're getting.

• 17:21Speaker 00

  That could be painful.

• 17:23Speaker 01

  Right? Don't know which one you're getting. You might get the hottest one first. Like no buildup.

• 17:27Speaker 03

  That's interesting, but.

• 17:29Speaker 01

  Like the blind, double blind, uh, random.

• 17:32Speaker 03

  Yeah, yeah, yeah.

• 17:33Speaker 01

  Uh, that would, that would be painful.

• 17:35Speaker 03

  You can try it out. Let us know how that goes.

• 17:37Speaker 01

  Yeah.

• 17:40Speaker 01

  My, my intestines will let you know later on. Uh, hey, so V, VW Volkswagen had introduced a self-driving vehicle and they were talking about doing it under a subscription platform, um, rather than, hey, a one-time purchase of, you know, $10,000 or whatever. And you have this, the, you know, the, the offer to do the, the self-driving deal.

• 18:04Speaker 01

  Not to be outdone. Tesla's full self, Tesla's full self-serving system will soon require a subscription as well.

• 18:13Speaker 01

  So right now, customers can currently buy the hands-free tech with an $8,000 one-time purchase, which personally I would probably rather do is to pay the upfront eight grand.

• 18:26Speaker 03

  Yeah.

• 18:27Speaker 01

  If I'm going to keep the vehicle for any length of time, right? Let's just, you know, use the numbers or whatever. But in February, Tesla is going to be switching to a subscription-only model. And so.

• 18:39Speaker 03

  Oh, okay.

• 18:40Speaker 01

  It is going to be $99 a month. Or you can do it once a year and it's a thousand, nine ninety-nine for the year.

• 18:49Speaker 03

  Yeah.

• 18:50Speaker 01

  So it's cheaper to do it for the year, but what about those people that are doing it at $99 for, um, you know?

• 18:55Speaker 03

  Yeah.

• 18:55Speaker 01

  So $1,200 a year.

• 18:57Speaker 03

  No.

• 18:58Speaker 01

  Uh, I still think I would probably want to do the $8,000 purchase if I'm going to keep my vehicle for longer than,

• 19:05Speaker 03

  Yeah.

• 19:05Speaker 01

  you know, seven years.

• 19:06Speaker 03

  For those who did purchase the full self-driving Teslas, like that's their, their grandfather's in, right?

• 19:13Speaker 01

  I'm hoping.

• 19:14Speaker 03

  Yeah.

• 19:14Speaker 01

  Cause if they didn't, I'd be upset. Like if I dropped that, if I dropped that coin right now.

• 19:19Speaker 03

  Yeah, yeah.

• 19:19Speaker 01

  In January and then like, didn't know. And all of a sudden it comes out next, next month. It's like, oh yeah, we, we switched. We're doing only.

• 19:26Speaker 03

  Yeah. Or, or those people.

• 19:27Speaker 01

  Subscription only.

• 19:28Speaker 03

  Who were doing the monthly installations for the full self-driving.

• 19:32Speaker 01

  Right.

• 19:33Speaker 03

  Now it's like, oh, you, you actually have to buy it outright or, yeah, at this point it's like, it's only subscription. That's, that's crazy.

• 19:41Speaker 01

  I, you know, and I, I'm wondering like with this AI, um, Self-driving vehicles becoming more prevalent.

• 19:50Speaker 03

  Mm-hmm.

• 19:50Speaker 01

  Um, you know, big rigs and and large 18-wheel trucks have been doing this for for nearly 15 years. Okay, this technology's been there for a long time. And the more it becomes commercially available for, you know, John Q six-pack to have a vehicle that's gonna drive themselves. Um, that's great. I I kind of wonder, it's like, what's the point of owning a vehicle anymore? Say, in the next seven to 10 years, right? What is the point if I if there's an automated vehicle and I can go and I can get a a Waymo? And it's gonna cost me 15 bucks to get to work, I'm just gonna do that. Why would I pay the extra?

• 20:33Speaker 03

  Insurance, the loan.

• 20:35Speaker 01

  You know, the car payment and all the maintenance and putting tires on it. I'd probably still hang on to my truck just for camping stuff like that, but my I wouldn't have a daily driver.

• 20:44Speaker 03

  Yeah, it it'd probably be just purely for recreational at that point now. And it's like, it makes sense, especially for these younger generations. It's like, why do I need my driver's license?

• 20:53Speaker 01

  I exactly, like, I'm looking at at my sons. And my two oldest sons, both of them were like, I I kind of don't need a driver's license, but then you wind up like you need a driver's license eventually, right? And they didn't really need one because it was like, well, friends will pick me up or I'll do this. They just they didn't have the same drive that I did when I was 16. It's like, I want my driver's license, I want my freedom. And uh, it's different now. Um, I will say that,

• 21:22Speaker 01

  a- and this is a real thing, so this is kind of a tangent, but kind of similarly uh, involved. If you're a 16, 17-year-old individual, please still get your driver's license. And the reason I say that is that um, commercial, i- if if your child is planning on working in the trades or, you know, a blue collar kind of a thing, working out in the oil fields or whatever.

• 21:49Speaker 01

  They won't be able to get a job. Because the commercial insurance on many of those properties and many of those leases require everybody on that job site to have two years worth of driving experience. And so if your child is getting a driver's license at the ripe old age of 18 or 19, they can't work there.

• 22:06Speaker 03

  Right.

• 22:07Speaker 01

  Right, right out of of high school.

• 22:08Speaker 03

  Uh huh.

• 22:09Speaker 01

  So another reason why even if they don't drive, just get the license so they have it, right?

• 22:15Speaker 03

  Yeah.

• 22:15Speaker 01

  So, um, definitely something to think about.

• 22:17Speaker 03

  Yeah.

• 22:18Speaker 01

  But for, you can't get away from these subscriptions now. Between Netflix and Hulu and Paramount Plus and Disney Plus and now Tesla and.

• 22:30Speaker 03

  There's subscriptions for, uh, like.

• 22:32Speaker 01

  Sirius XM, like everything that you have has some kind of a subscription fee associated with it now.

• 22:39Speaker 03

  Yeah, yeah.

• 22:40Speaker 01

  Like Steven said, they're gonna nickel and dime us to death, right? Of course, they're gonna, whatever they can find a way to nickel and dime you, they're gonna figure out a way to nickel and dime you. So congratulations to Tesla for stealing VW's idea.

• 22:55Speaker 01

  Been there for a while.

• 22:56Speaker 03

  Mm hmm.

• 22:57Speaker 01

  So, um, but anyhow, so I wanted to talk, cause the Volkswagen deal was $22 a month.

• 23:06Speaker 03

  $22?

• 23:07Speaker 01

  Mm hmm.

• 23:08Speaker 03

  Okay.

• 23:09Speaker 01

  $22 a month was what they were expecting for their, uh, self-driving. It's not a full self-drive like Tesla's is.

• 23:17Speaker 03

  Mm hmm.

• 23:17Speaker 01

  So there's a little bit of a difference.

• 23:19Speaker 03

  Okay.

• 23:19Speaker 01

  Um, Tesla's is definitely full, full-fledged, full self-driving. Volkswagen's is a little bit, you know, less than that, but it was, I'm looking at it was $22 a month for theirs.

• 23:29Speaker 03

  Did they, did they partner with anyone for that?

• 23:32Speaker 01

  I don't know that. I didn't see that in the article. But that monthly subscription, starting at $22 a month, you can opt in for a one-time lifetime fee of $880.

• 23:44Speaker 01

  That's less than a year on a Tesla.

• 23:46Speaker 00

  Mm hmm.

• 23:47Speaker 01

  Right? So, I mean.

• 23:50Speaker 00

  I mean, is that, I mean, it's pretty much what the life we're living in now, the world we're living in. It's apps for everything, subscriptions for this. I spent 30 minutes for you guys came down just to download this free app. And before I got the free app downloaded, it asked me three different times if I wanted to get this for an extra $9 after a 10 day free trial.

• 24:10Speaker 01

  Uh, yeah.

• 24:11Speaker 00

  No, no.

• 24:12Speaker 01

  No, and if you don't remember to cut, some of those, they don't even have you, they opt you in. Without your knowledge and then you wind up having to go back and look it back later and be like, I didn't opt in.

• 24:22Speaker 00

  Yeah, what is this $8 charge I've been getting?

• 24:25Speaker 01

  A month I'm paying for this thing that I don't use.

• 24:28Speaker 00

  Mm hmm.

• 24:28Speaker 01

  Right? So, yeah. Another money wise tip, check your subscriptions and make sure you're actually using them. If you're not, cut them out.

• 24:35Speaker 00

  Cause they're nickel and diming you.

• 24:36Speaker 01

  They are gonna get you. They're gonna get you. Um, so we had a couple of questions that popped in. We're gonna get to those real quick before we hit to a break. But then I do want to talk when we come back. Um, Mr. Beast, not as rich as you think. Mr. Beast, not as rich as you think. Um, we'll get to those questions when we come right back.

• 25:08Speaker 01

  Welcome back.

• 25:11Speaker 01

  Aren't they gonna be here on Tuesday?

• 25:12Speaker 00

  Tonight.

• 25:13Speaker 01

  Tonight, that's right.

• 25:14Speaker 00

  Tonight.

• 25:17Speaker 01

  With, that should be a good concert.

• 25:18Speaker 00

  Bad religion. One of the first concerts I've seen was the Offspring at, out at the, uh, they played a little small show, uh, at the fair. It wasn't at the Kern County Fair, but it was at the fairgrounds and they were actually really good. I was surprised.

• 25:33Speaker 01

  Yeah, they're, they're pretty good. I, um. I've wanted to see Bad Religion for a while, I just haven't been able to make it work.

• 25:39Speaker 00

  Mm-hmm. You wanna go?

• 25:42Speaker 01

  My mom is in town, so...

• 25:44Speaker 00

  They're gonna put it off on the mom card. You don't have to go, I was just saying.

• 25:48Speaker 01

  I do want to go, but they do come through here quite often.

• 25:52Speaker 00

  Yeah, they do, and this is actually their kickoff the tour here, which a lot of bands do.

• 25:57Speaker 01

  Right, so like Tool or Korn or so, they'll start their concert, their whole tour here and then work out the bugs, if you will, and then move on to the rest of the country.

• 26:08Speaker 03

  Interesting.

• 26:09Speaker 01

  So, uh, Social Distortion and Bad Religion typically come through here relatively regularly.

• 26:14Speaker 00

  Once a year?

• 26:15Speaker 01

  Yeah, regular. So, definitely gotta make that as a...

• 26:18Speaker 00

  Social D, man, I haven't seen them in a long time.

• 26:21Speaker 01

  I need to see Mike Ness, man. That's gonna be a good...

• 26:23Speaker 00

  That's another good band to see live.

• 26:25Speaker 01

  Yeah. Um, but we had a couple of questions came in, comments that came into the old interwebs uh, over the last little bit, so uh, what do we got here, Frank?

• 26:34Speaker 03

  Oh yeah, sorry, I had to close this out, but uh, let me open up.

• 26:37Speaker 01

  Yeah, we're still trying to figure out the computers.

• 26:38Speaker 00

  Hey MoneyWise, I'm blessed, I retired in August at 65, I chose to keep my 401K. Uh, in 10 years, when the RMD is required, will that include my 401K or just the IRA? And uh, rollover, awesome show, just me, F Lee, awesome, young man. Oh, just met F Lee. F Lee, I like that.

• 27:02Speaker 01

  I like it.

• 27:03Speaker 00

  F1, F Lee, Frank the Tank.

• 27:05Speaker 01

  Frank the Tank.

• 27:06Speaker 03

  Yeah, yeah, yeah.

• 27:09Speaker 01

  Interesting question. So, this is where um, some planning takes place. So I wanna, I wanna be very clear on this, is that, you know, it's your, you know, when you have a 401K and you're leaving it in there, perfectly fine. What I would say is though, because when the RMDs are now required at the age of 75, if you're born after 1960, it sounds like that's the case. At 75, you're required to take those required minimum distributions. Now, if everything was in multiple, say multiple different IRAs. Not a 401K, but if you had multiple different IRAs, let's say you had an annuity,

• 27:49Speaker 01

  let's say you had a regular traditional IRA, maybe you have three different IRAs at different custodians, you can absolutely do that. If you have an RMD, let's say your required minimum distribution is $20,000.

• 28:04Speaker 01

  You can pick and choose to take that RMD from any one of those IRAs, or you can split it between each and be proportional. You can do that, and you can select just one IRA to be your RMD. Okay. Where this gets tricky, if you have a 401K, and you have an IRA, and you have other things that are maybe different registrations, you would be required to take a minimum distribution from each of those accounts, each one that has a different registration. So, let's say, in the same scenario, you had a $20,000 RMD. Well, if they're calculating based upon your 401K,

• 28:49Speaker 01

  your 401K might be 6,000 of that, and the other $14,000 has to come from your IRA. You cannot mix and match.

• 28:58Speaker 03

  Oh, interesting.

• 28:58Speaker 01

  You cannot mix and match. You have to, and so I've seen clients where they have, I've got a 401K, I've got three different 401Ks, I got a 401K and a 403B and an IRA, and you've got all these different alphabet soups of retirement plans. For each one that has a different registration, you would have to take a, an RMD from each.

• 29:24Speaker 03

  Yeah, because essentially.

• 29:25Speaker 01

  It's a different account.

• 29:26Speaker 03

  Right, right, exactly.

• 29:28Speaker 01

  It's a different style of account.

• 29:29Speaker 03

  Yeah, I would have thought that because RMDs are just like a blanket rule. But it seems like with 401K specifically, if you have a 401K and an IRA account, that RMD is going to be stricter in the sense that if that 401K has an RMD, you take that for the RMD for that, and then you have to take the RMD from the IRA, which in the scenario you've given earlier, was that if you had multiple IRA accounts, you can pick and choose where to pull from that, for the total RMD.

• 30:00Speaker 01

  Right, and so this is where, and this is not a recommendation, but I will say that for cleanliness, most people when they retire, rather than leaving the 401K alone.

• 30:14Speaker 01

  They will roll it over. Simply because of that. Now, it doesn't have to be immediate, but it's like one of those things where it's like, hey, if I know that I'm gonna have to take multiple difference and I'm gonna have to calculate the amounts. And each of these amounts might be different in each of these different accounts. For clarity, for simplicity, and for just being done with it is to kind of consolidate and have those IRAs. So now you can, even if you had multiple different IRAs, you can, you can just say, well, that's my RMD IRA. Until it's fully liquidated or whatever, and then move on to the next one. So that's the, that's my two cents on that is that you can do what you're doing. Just be, be careful that eventually you're gonna have to take an RMD from each account.

• 30:59Speaker 01

  Okay. Next question we had there.

• 31:02Speaker 00

  This one's a long one, so stay with me. Is the diner open on the weekends?

• 31:08Speaker 01

  Okay.

• 31:08Speaker 00

  Says my grandparents will be in town and they always shared stories about taking my mother there when she was a child and would love to take them down when they get into town.

• 31:19Speaker 01

  Nice.

• 31:19Speaker 00

  They have been out of state for about 20 years and have no idea about the reopening. Thank you so much to what you guys do for the community. Please tell Gero the Henderson said hello. One of the coolest dudes. He helped me a lot when I was saving up to buy my first home.

• 31:36Speaker 01

  That's, we hear that all the time about Gero regardless of the source. We hear, he, he's an amazing guy.

• 31:44Speaker 00

  I wouldn't be here without Gero.

• 31:45Speaker 01

  I wouldn't be here without Gero.

• 31:47Speaker 00

  See, look at this.

• 31:48Speaker 01

  Frank wouldn't be here without Gero, try it quite frankly.

• 31:50Speaker 00

  He doesn't even know that.

• 31:52Speaker 03

  Oh, no, I know that.

• 31:55Speaker 03

  I feel it.

• 31:55Speaker 01

  Yeah, no, if, if, if it weren't for Gero, Money Wise wouldn't exist in the first place.

• 32:00Speaker 00

  100%. That's that G money magic.

• 32:03Speaker 01

  That is true.

• 32:04Speaker 00

  The next one says.

• 32:05Speaker 01

  But yes, I, to answer the question.

• 32:06Speaker 00

  It is open on the weekends.

• 32:08Speaker 01

  It is open on the weekends.

• 32:09Speaker 00

  Saturdays, right?

• 32:09Speaker 01

  Hours are Saturdays only, but it's, the hours are a little bit different. I think it closes at 6?

• 32:15Speaker 00

  I think it closes later.

• 32:16Speaker 03

  No, I thought it was 10. I thought it was 10. Yeah, 10 PM. Yeah.

• 32:19Speaker 01

  So yeah, so the, definitely come on down, bring them down, grab a burger. Grab a Ruben, grab a Pepsi.

• 32:26Speaker 00

  Oh my gosh, those Rubens.

• 32:27Speaker 01

  I, I had one the other day and it was the best one I'd had yet.

• 32:30Speaker 00

  I, I was steering away from the Rubens because I heard so much about them and every time I'd get down there, I'd just get a cheeseburger. I'm like, it's a cheeseburger milkshake type guy.

• 32:38Speaker 01

  Yeah.

• 32:39Speaker 00

  But the Rubens, man, I tried a Ruben over the weekend and it's.

• 32:41Speaker 01

  It's fire. Man, it's fire.

• 32:43Speaker 00

  And even the soups of the day. What is that soup we just had?

• 32:47Speaker 01

  The albóndigas on Wednesday. We had, uh, Richard.

• 32:51Speaker 00

  That's what I said.

• 32:52Speaker 01

  Albóndigas.

• 32:52Speaker 00

  Exactly what I said.

• 32:53Speaker 03

  Albóndigas?

• 32:54Speaker 01

  Albóndigas. It's a, um, it's a meatball. It's a Mexican meatball soup.

• 32:57Speaker 00

  Oh.

• 32:58Speaker 01

  It's very, very tasty.

• 32:58Speaker 00

  With the grilled cheese you dip in?

• 33:00Speaker 01

  Oh, we, we actually did grip. You're not supposed to technically drip dip a grilled cheese into albóndigas, but we did anyway.

• 33:05Speaker 00

  Really?

• 33:06Speaker 01

  Yeah.

• 33:06Speaker 00

  I didn't know.

• 33:07Speaker 01

  It's, but it's a hearty enough soup without the grilled cheese.

• 33:10Speaker 00

  Yeah, it was really good.

• 33:11Speaker 01

  But it was tasty. It was definitely tasty.

• 33:13Speaker 00

  Yeah. So bring the family down.

• 33:15Speaker 01

  Bring them down.

• 33:16Speaker 00

  I believe it's, uh, ten, no, I believe it's 11 to 10.

• 33:19Speaker 01

  11 to 10 on Saturday.

• 33:21Speaker 00

  But you can also go on, uh, social media, the website, all of that. They'll have all the information for you. The next text says, I'm sure you guys have went over this with your clients over and over and over, but how important is diversification during times like this?

• 33:38Speaker 03

  Yes.

• 33:38Speaker 01

  Ah, I'm gonna, I'm gonna, I'm gonna preface this and say you didn't need to even have those last four words in that question. Right? Anytime, anytime, period. And like end of, end of statement, you do not like diversification, period. Not even just during times like this, just all times.

• 33:59Speaker 03

  Yeah. Um, cases like this, questions like this, I, I really wish we had something to where we can show the listeners a visual.

• 34:06Speaker 01

  Yeah, yeah.

• 34:06Speaker 03

  Cause like every time I hear something like this, I immediately go to the, uh, allocation quilt.

• 34:11Speaker 01

  Yeah.

• 34:12Speaker 03

  And just show them, well, here's why.

• 34:14Speaker 01

  Right. You cannot possibly, you cannot possibly predict which asset class is going to perform best or worst next year.

• 34:23Speaker 03

  Yeah, exactly.

• 34:24Speaker 01

  Or next month, for that matter. And you can, you can have convictions that say, oh, I think this is gonna be, you're net, you're not going to be right 100% of the time. So therefore, having a risk allocated portfolio with proper diversification, holding stocks, bonds, um, you know, internationals, domestics, you know, all of the different, you know, sub asset classes that are there, you know, small caps, mid caps, large caps. You, you build a portfolio where you have all of that in there. You're not going to win the race by being the highest return, but you're sure as heck not going to be the lowest return either.

• 35:01Speaker 03

  Right.

• 35:02Speaker 01

  Right? So the idea is, you know, we go back to, what is it, Aesop's Fables and all that kind of stuff of like, the tortoise and the hare, you know, who wins the race in the end? It's not the hare, right? It's slow and steady wins that race. That's what diversification does for you. It doesn't allow for the high highs and it also doesn't allow for the low lows.

• 35:26Speaker 03

  Yeah, it mitigates a lot of the volatility that you usually see based on the diversification because again, in this example, if you're all in SPY, S and P 500, large cap, whatever.

• 35:40Speaker 01

  But even then, I would argue that that's not even diverse.

• 35:43Speaker 03

  Right, right. Exactly. Yeah.

• 35:44Speaker 01

  Because that's just one asset class. It's the US stock market.

• 35:46Speaker 03

  And I think that's the barrier that a lot of these investors have, the limitation in what they think a diversification truly is, is that, oh, well, S and P 500.

• 35:56Speaker 01

  I own 500 stocks.

• 35:58Speaker 03

  Yeah, yeah. So I am diversified versus again, the quilt that we refer to when we talk about asset allocation, isn't necessarily just the 500 stocks. It's large cap, small cap, mid cap, emerging markets, international markets, real estate, commodities, everything.

• 36:19Speaker 01

  Yeah, because I mean, let's look at 2025 as a really good example. A lot of people are very gung ho on the US and the US stock market. And so they'll buy the SPY, the S and P 500, which is the US stock market. Had they quote unquote diversified better and actually included some international stocks into that portfolio. You want to know what happened with international last year? International stocks outperformed the United States by two to one. Nearly two to one. The S and P 500, I think, was up around 15, 18%. International, depending upon, you know, where we were, but the internationals were upwards of 30%.

• 36:59Speaker 01

  Right? So that's what I mean by, you know, you're not going to have the high highs, you're not going to have the low lows. But by having all of these different asset classes under the same umbrella. It is going to, you're, you're going to be able to, to get better, you know, long-term performance by having that diversification.

• 37:19Speaker 03

  Yeah, and it's, it's always tough to have this type of conversation because a lot of these charts, a lot of these historical data shows a limited window. So people usually navigate to like, oh, well, during this period, for example, US large cap did so good during 2009 to 2024. So I believe.

• 37:44Speaker 01

  I'm going to continue going forward.

• 37:45Speaker 03

  I'm going to continue doing this. Right. Yeah. But next 10 years from now, how does that look? Is it, is it going to hold true or is it going to?

• 37:51Speaker 01

  Fall apart.

• 37:51Speaker 03

  Fall apart. Right. Whereas the.

• 37:53Speaker 01

  It works until it doesn't.

• 37:54Speaker 03

  Yes. It works until it doesn't.

• 37:56Speaker 01

  Right. Is the way we, we look at it. So we're going to take a quick break, but when we come back, there's a bill on a bipartisan bill. When is the last time you heard that? An actual bipartisan bill in Congress where they're looking at the ability to use your 401k to buy annuities. I've got some thoughts on this. We're going to take a quick break and we'll come back and we'll talk about that.

• 38:33Speaker 01

  Welcome back.

• 38:36Speaker 01

  The second half of the band's playing today.

• 38:43Speaker 01

  It's a good one.

• 38:47Speaker 01

  Still think my favorite Bad Religion song, L.A. Burning.

• 38:52Speaker 00

  Of course.

• 38:53Speaker 01

  That's a good one.

• 38:54Speaker 03

  I'll have to listen to this.

• 38:55Speaker 01

  That's good stuff.

• 38:57Speaker 00

  Never Bad Religion?

• 38:58Speaker 03

  No, no.

• 38:59Speaker 00

  Justin, Justin could teach you some things on a different playlist.

• 39:03Speaker 03

  Yeah, yeah. I mean, I grew up listening to Paramore and Linkin Park.

• 39:07Speaker 00

  Oh, nice. Okay. So I'm gonna ask you, because my co-host in the morning show is a big Linkin Park guy. And of course with Chester passing.

• 39:15Speaker 03

  Yeah, right, right.

• 39:16Speaker 00

  The new singer, he's like, I can't listen to it. I can't listen to it. I think she's talented personally.

• 39:22Speaker 03

  Yeah, and wasn't there, didn't she like, like quit the band too because of all the?

• 39:28Speaker 01

  The negative grass, yeah.

• 39:29Speaker 03

  But like, she sounded good.

• 39:31Speaker 00

  I mean, no one's Chester.

• 39:33Speaker 03

  Yes, exactly. No one is Chester. And I don't think she was going into this to replace Chester.

• 39:39Speaker 00

  Yeah.

• 39:40Speaker 03

  It's like.

• 39:41Speaker 01

  Well, it's like, it's like the new drummer for Rush, right? Right? Nobody's gonna replace.

• 39:46Speaker 00

  Of course.

• 39:47Speaker 01

  Nobody's gonna replace Neil Peart, right?

• 39:49Speaker 00

  But I'm like, what are you gonna do? Change the band name?

• 39:51Speaker 01

  Right. Come on, guys.

• 39:53Speaker 00

  Maybe, maybe you have to. She's had to push herself out.

• 39:57Speaker 03

  Yeah.

• 39:57Speaker 00

  But I thought she was talented, but.

• 39:59Speaker 03

  Oh, yeah, no, a hundred percent. I agree. Because like, there was a show I was watching and their, their song was in it. It was, uh, uh, what was it? Heavy as the Crown and everything. I was like, dude, this is nice. Like, I, her voice was really good.

• 40:12Speaker 00

  And there's not a lot of rock, newer rock right now. So I was like, this is great to hear.

• 40:17Speaker 01

  Right, exactly. Hey, um, so older workers with this new bipartisan bill that's getting pushed through Congress right now, uh, older workers could potentially start using their 401K to buy annuities. I don't know why this is a thing because it's been a thing for a long time. I don't know why they have to have a separate bill. Okay, well, the reason why is, um, folks have always been able to, when they terminate employment, meaning they are retired or they quit a job or whatever, that money is yours and you can do what you want with it. You can leave it in the 401K if it is, it meets certain criteria. Uh, but most people will want to consolidate and move that money out.

• 41:01Speaker 01

  And so you've always had the ability with your 401K.

• 41:06Speaker 03

  Yeah.

• 41:06Speaker 01

  To buy an annuity. Okay, now, annuities are great in certain circumstances and annuities are a bad tool when not used properly or correctly, right? I will say that I'm looking at this bill that, you know, right now, most plan documents, the name of the bill is called the Retirement Simplification and Clarity Act, HR 6324. It would let employees that age 50 or older roll part of their 401k assets into a qualified annuity while still working. This is the change. Okay?

• 41:48Speaker 01

  Most 401k plans, in fact prohibitively all of them, won't allow for you to do any kind of an in-service withdrawal prior to the age of 59 and a half. Unless the plan document very explicitly allows for that to happen. Which I would say, and I've been doing this for a long time, I do a lot of 401ks. I haven't seen one that does it, ever, right? Almost every one of them is 59 and a half. Many of them are actually at 65. They won't even allow you to do it from 59 and a half and on. But, this Retirement Simplification and Clarity Act would allow for employees that are age 50 or older

• 42:32Speaker 01

  to start rolling assets into a qualified annuity. Now, what I can tell you right now is this screams to me of insurance lobby

• 42:45Speaker 03

  Right.

• 42:45Speaker 01

  trying to get this thing passed through.

• 42:50Speaker 01

  One of the things that, you know, like I said, annuities can be great in certain circumstances. They can be very detrimental in the wrong hands.

• 43:01Speaker 01

  And one of the things I do worry about in doing something like this is that

• 43:08Speaker 01

  there are, there's different rules, right? Like so, so Frank and I have our Series 65 license, which is carries with it a certain ethical guideline, a fiduciary guideline, whatever it is. We have to do what's in the best interest of our clients. We're not doing what's in our best interest. Well, guess what? Annuities by and large are commission products where there is a lesser standard of fiduciary care.

• 43:34Speaker 03

  Yeah, they don't, they don't fall into the Reg BI.

• 43:37Speaker 01

  They don't necessarily have to, I mean, they, they have to do the suitability, right? Is it suitable for this person? Well, I can prove that it's suitable to you. It's whether it's not, it's in your best interest or not is a completely different story.

• 43:49Speaker 03

  Yep.

• 43:49Speaker 01

  Right? Now, one of the things that's actually happening in the industry, and Frank and I can say this because we do it. This is what we do. We manage a lot of 401ks in town. Okay. For the business services unit.

• 44:03Speaker 01

  Some plan sponsors, some, not all, it's not very widespread. Some plan sponsors are starting to offer a guaranteed income product within 401k plans.

• 44:16Speaker 03

  Yep.

• 44:16Speaker 01

  Okay. So, almost makes this bill not really necessary if there was wider, if, if that guaranteed income option was available inside of the 401k more often, then this bill wouldn't necessarily be necessary. What changes that is that the 401k has with it all of these different fiduciary standards, 338, 320, I don't want to get inside baseball on this, but the advisor on your 401k takes on a, a responsibility of best interest. They have to do what's in the best interest of the plan of all of the sponsors, of all of the participants within that plan.

• 45:00Speaker 01

  So we're one of the few firms when we're talking about this where we actually are offering guaranteed income options within some of the 401ks that we offer. Not all of them because the asset wise and everything, it doesn't maybe make sense in some cases. But for some of the larger 401ks that we manage, there is a guaranteed income option that's available. So what I would say is if this bill passes, be very, very careful. If you're going to make a choice that says, I'm going to take money, I'm 51 years old and I'm going to take half of my 401k, I'm going to put it into this annuity. Talk to a fiduciary financial advisor first to make sure that it's in your best interest to do so. It may not.

• 45:44Speaker 01

  You might want to leave it alone, let her rip and continue funding what you're funding and do that later. You don't have to do the annuity at 50.

• 45:53Speaker 03

  It's all dependent.

• 45:54Speaker 01

  It's all dependent. Everybody's situation is different. Don't let a sales guy talk you into something that you don't need or want.

• 46:00Speaker 03

  Exactly. Good point.

• 46:02Speaker 01

  Hey Stephen, it's a beautiful facility down here. The lights are nice, loving it. Three day weekend. Happy Martin Luther King Day. You know, be smart, be safe, be money wise. Have a wonderful three day weekend. We'll see you on Tuesday.

• 46:19Speaker 02

  Securities offered through LPL Financial, member FINRA, SIPC. Investment advisory services offered through LPL Financial. LPL Financial and MoneyWise Wealth Management are independently owned and operated.