11/8/24 The American Dream: Homeownership, Financial Risks, and Minter Field's Legacy with Ron Pierce

The Moneywise Radio Show and Podcast Friday, November 8th BE MONEYWISE. Moneywise Wealth Management I "The Moneywise Guys" podcast call: 661-847-1000 text in anytime: 661-396-1000 website: www. MoneywiseGuys.com facebook: Moneywise_Wealth_Management instagram: MoneywiseWealthManagement Guest: Ron Pierce, Minter Field Air Museum website: https://minterfieldairmuseum.com/

• 0:00Speaker 00

  From the padded radio room off Stockdale Highway, here is Money Wise. Call or text in at 661-396-1000.

• 0:09Speaker 01

  I need a dollar, dollar, dollar, that's what I need. Hey, hey. Well, I need a dollar, dollar, dollar, that's what I need. Hey, hey. Said I need a dollar, dollar, dollar, that's what I need. And if I share with you my story, would you share your dollar with me?

• 0:30Speaker 02

  Securities offered through S E F Securities, Inc., member FINRA, SIPC.

• 0:33Speaker 00

  Investment advisory services offered through S E F Investment Advisors, Inc. S E F Securities, Inc. and Money Wise Wealth Management are independently owned and operated. Now, let's start the Money Wise Show.

• 0:43Speaker 03

  That's right, let's start the Money Wise Show. I'm your host today, Chris Pellster, with?

• 0:49Speaker 01

  Troy Dinkins.

• 0:50Speaker 03

  Mr. Dinkins has joined us here for this Friday. We have a good show for you, we are excited. First time that I've been on the show after the election. It's been a wild week.

• 1:00Speaker 01

  Yeah.

• 1:00Speaker 03

  Lot to talk about, markets have been going crazy. Lot to talk about there, some key things to remember in these seasons. So, we will talk about that. I've definitely been getting some of those texts of people who know what I do for a living, like, "Ooh, you know, what about this and look at that." Boy, it is a reminder of stay level-headed.

• 1:23Speaker 01

  That's right.

• 1:24Speaker 03

  Good or bad, both sides, even if the other result would have happened. We've always said the same things, stay money wise, folks.

• 1:31Speaker 01

  Right.

• 1:32Speaker 03

  So, we are going to be joined by the president of the Mentor Field Museum. So, it is a Taking Care of Business Friday, we're excited about that. Get to hear a little bit about the Wings and Wheels Show going on this Saturday, yes? November 9th.

• 1:49Speaker 01

  Tomorrow.

• 1:50Speaker 03

  Tomorrow, I actually think a Money Wise car will be out there.

• 1:54Speaker 01

  Ooh.

• 1:55Speaker 03

  A yellow Mustang that is famous here in the Money Wise Halls. The Claffys will have their Mustang out there. So, if you can, join that and definitely stick around for the rest of the show when we're going to be talking to them about the event and the Mentor Field Air Museum, which is a nice little nugget here in our community. So, thanks for what you guys do out there, we'll talk about that later. But, we are going to talk about the market. We finished... A big week.

• 2:22Speaker 01

  We had a big week, huh, Chris?

• 2:24Speaker 03

  Big week. So, the, uh, stock market liked the results, I guess, of the, uh, of the, uh, presidential election.

• 2:33Speaker 01

  Mm-hmm.

• 2:33Speaker 03

  Little bit of a bounce there, a rally. Uh, US stocks capped their best week of the year, uh, today. Uh, S and P 500 briefly hit 6,000, the 6,000 mark. It did close just a little bit below that, but, uh, definitely hitting back on some of those levels that we have previously seen, but it closed just below 6,000.

• 2:54Speaker 01

  Yeah.

• 2:55Speaker 03

  Um, let's see. One of the things that we did see some volatility on is, uh, the, the US dollar and Treasury yields gave up a good chunk of their post-election gains. So, right after the elections, uh, yields and dollar, um, did, did see a little bit of a bounce or, or push up, but they were, uh, kinda gave those up today in trading. So, um, I guess, kind of an efficient market, stocks up, bonds down.

• 3:21Speaker 01

  Yeah.

• 3:21Speaker 03

  It's kinda typically what we see, but, uh, a lot of things, um, going on. Obviously, a lot of people thinking that, uh, uh, Donald Trump, um...

• 3:30Speaker 01

  Pushed the button.

• 3:31Speaker 03

  Well, and, and then some of his policies, you know, some of his policies might be better for the economy.

• 3:37Speaker 01

  Yeah.

• 3:37Speaker 03

  Um, so that, you know, so a lot of reaction to that. The thing that we have said going into this is even if for the results were the other way of staying level-headed, you know, does your account need to be rebalanced? What is your investment mix? Even on the high of feeling like Donald Trump will do some things for the economy, you, you cannot lose focus of, of where you should be invested, where your situation is, having an allocation that makes sense for you.

• 4:04Speaker 01

  Yeah.

• 4:04Speaker 03

  Um, because, you know, uh, definitely, you know, we might see some policies that are uh, a little bit better for the economy, but it does not change some of the things that we have said through all presidencies.

• 4:15Speaker 01

  Yeah.

• 4:15Speaker 03

  Through, uh, Democratic, Republican presidencies, stay level-headed, have an investment mix that makes sense for you, um, and, uh, and, and stick with it. So, um, I'm not sure if anybody has any questions or thoughts, but like I said, the, uh, S and P- 500 did close just slightly below 6,000 at 5,995. The Dow Jones, which we do call the dumb Dow, it is price weighted and so it is only 30 stocks. 43,988. Nasdaq's at 19,286, up about 1/10 of a percent. And the Russell 2000, a little bit more of the mid-sized companies there. It closed at 2,399, up almost, it was 7/10 of a percent there move.

• 4:59Speaker 03

  So when the stocks moved positive, we talked about a little bit. The dollar and the bonds dropped. Crude oil also went down about 2.6%. It's $70.45 a barrel and gold pulled back. It's at 2,691. It's about a half a percent there, drop of value on the gold, so.

• 5:19Speaker 01

  Yeah, gold needed that pullback and gold, gold was just super extended, just.

• 5:23Speaker 03

  Yeah.

• 5:23Speaker 01

  Yeah.

• 5:24Speaker 03

  A lot of times people don't realize, you know, some of the volatility with gold and the fact that you can lose money in gold. Yeah, it's very cyclical and it's very, it's very much based on supply and demand. And when people are feel fearful and those kinds of things, something like gold's gonna run up.

• 5:41Speaker 01

  Yeah.

• 5:41Speaker 03

  When people lose fear or feel really optimistic, a lot of times people will get rid of some of their gold that they had. Or maybe if gold's made a lot of money, which it has, it's gone up in value a lot. The last couple of years, you may see people feeling better about things, which it seems like that's what we're seeing right now in the markets. Some people might be taking some of their gold holdings out, uh, cause maybe they don't feel like the sky is falling anymore, so.

• 6:04Speaker 01

  They wanna reallocate.

• 6:05Speaker 03

  Yeah, yeah, or enjoy it. Cause the funny thing when people, a lot of times, well, they wanna hold gold, I'm like, is your, your point is just to buy this and never touch it, never use it, never use it for income? Like, oh, you know, it's like, it's, you know, you have to remember what the point and the purpose of the goal is of the funds.

• 6:21Speaker 01

  In my eyes, you know, buying gold, buying silver, any precious metal is speculative. It's just like owning an individual stock.

• 6:29Speaker 03

  Yeah.

• 6:30Speaker 01

  Basically, because you're, you're only. You're only relying on that source. There's nothing diversified, you know, within those commodities.

• 6:37Speaker 03

  It doesn't pay a dividend.

• 6:38Speaker 01

  It doesn't pay a dividend.

• 6:39Speaker 03

  Yep. And depending on how you hold it, it can be very tax inefficient. Um, because it, it, uh, I think it's even taxed a little bit differently than stocks are. Um, but, uh, but yeah, there's also other ways where people feel like you don't pay any taxes on gold, but that's between you and the IRS. But, um, yeah. So, uh, so just like I said, a big, big week on the market there, but just definitely things to remember. You know, one of the funny things about in times like this, everybody's excited. You know, I, I was getting some texts, like I told you, um, big moves or look at this stock or look at that stock Tesla up, you know, nine percent just in the last couple of days.

• 7:15Speaker 01

  And they were flat for the, until then, you know, zero percent.

• 7:18Speaker 03

  The thing, the thing that you remember is we always talk about Warren Buffett being one of the best investors of our time. And he always reminds us through all the good and the bad, when everybody else is wanting in, Warren Buffett is wanting what?

• 7:31Speaker 01

  Opposite.

• 7:32Speaker 03

  He's wanting out.

• 7:33Speaker 01

  Yeah.

• 7:34Speaker 03

  When everybody's wanting out.

• 7:35Speaker 01

  Yep. When there's blood in the street.

• 7:36Speaker 03

  When there's blood in the streets is his famous saying.

• 7:38Speaker 01

  Yeah.

• 7:39Speaker 03

  That's when Warren Buffett wants in.

• 7:41Speaker 01

  Yeah.

• 7:41Speaker 03

  And so I'm not saying I'm, I don't, you know, you know, maybe, you know, yeah, I want a strong economy. I want the economy to do well. I want more people to, uh, participate in the success and, and future of America. I've wanted that all along, but you have to remember when everybody else is super optimistic and maybe buying stocks, not even thinking about some of the realities and everybody's wanting to throw a bunch of money at the stock market right now. Just reevaluate. Is it the best choice? Warren Buffett would say, when everybody else is wanting in.

• 8:13Speaker 01

  Yeah, everybody.

• 8:14Speaker 03

  You want out. And when everybody else is wanting out, you want in. And, and time and time again, I've been around the markets and people and their accounts and account values for a long, long time.

• 8:25Speaker 01

  Yeah.

• 8:26Speaker 03

  And, uh, we, we all fall victim to this, the fear of missing out, right? People don't want to miss out. Like, oh, I need to jump on if the markets, well, you gotta remember the market is already.

• 8:36Speaker 01

  They already priced it in.

• 8:37Speaker 03

  It's, it's gone up big time over the last 12, 13 months, you know? Be cautious.

• 8:43Speaker 01

  Like I always say, the, the market is in a, in a way a discount mechanism. Because some of the catalysts that come out has already been priced into the actual market. Normally you tend like on an individual stock basis, you'll see like, you know, Apple have received good news or I'm just using Apple for example, you'll see it receive good news and all of a sudden the price just starts to fall.

• 9:04Speaker 03

  Yep.

• 9:04Speaker 01

  You know, because you have those whisper numbers, you have a lot of institutions that are way smarter than the regular retailer. Um, and going back to the Trump, you know, uh, the, the levers that he's able to pull, you know, with, with, you know, the markets and stuff like that, you know, there's a fiscal policy, there's a monetary policy. You know, those things could be influenced, uh, you know, on, on his level, but the, the, the main kryptonite for the market, like we saw in 22, uh, was interest rates and, and essentially that had a lot to do with our federal government or the Fed.

• 9:35Speaker 03

  Yeah.

• 9:36Speaker 01

  And our central banks. So like Chris was saying, like we, we want to stay wise, we want to, we don't want to get too over optimistic. You know, we, we do want to focus, you know, you know, on the macro, you know, right now, there's never been an individual, the, the individual does not control the market. But like I said, there are certain interventions, um, tax policy, corporate tax policies could have a major impact. You know, on individual stocks, every, every company has to face its own problems and issues when it comes to revenues and profits.

• 10:03Speaker 03

  Yeah.

• 10:04Speaker 01

  So that's just something to remember.

• 10:05Speaker 03

  Yep. And one of the things, uh, when you were talking there, Latroy, you, you, you, you talked about the feds and I can't help but hear those, uh, that beautiful voice of Mr. Gero Ellis saying, don't fight the feds.

• 10:17Speaker 01

  That's right.

• 10:17Speaker 03

  And so, you know, um, remember that if policies push the markets ahead and, and the economy ahead too fast, too furious, well, the Fed's job is to make sure things don't get out of control.

• 10:29Speaker 01

  Yeah.

• 10:29Speaker 03

  And what are we talking about? We're talking about inflation.

• 10:32Speaker 01

  Yes.

• 10:32Speaker 03

  So there are so many dynamic elements that go to having a healthy economy. Um, levers that will get pulled and pulled back. You can't just step on the gas, which I know everybody would say, well, why not just step on the gas? Well, how much have everybody liked inflation over the last couple of years? How, you know, do you like nine dollars for your gallon of milk or whatever it is? No, I mean, it's not fun. So the feds are trying to keep inflation in check. And if everything just pours forward too fast, that is what you will have. You'll have out of control inflation. And from what I understand, I mean, I'm not a major economist, but I know a little bit about it. It's one of those things where inflation is not something that just slowly creeps up. It's if you, if you get behind the eight ball, when it has to do with inflation,

• 11:18Speaker 03

  it's going to run out of control and you don't want to have that happen. So don't fight the feds. And speaking of Mr. Gero Ellis, I'm not sure if the announcement has been made official on the airwaves. He took his first steps this week.

• 11:29Speaker 01

  Yes, sir.

• 11:30Speaker 03

  Sister of a cane. So he's, he's walking, he's cruising. And it's only gonna hopefully keep getting better. So congrats, Mr. Gero Ellis. We love you and we're thinking about you and your family. And so

• 11:43Speaker 01

  Speaking of walking, how was that walk last week?

• 11:45Speaker 03

  It was awesome. Yeah, yeah, we went and we did B C, up at B C, the, the Heart Association, which now has lumped in stroke victims, survivors and, and education because strokes are, are very critical. A lot of times strokes are also tied to heart issues. So they've kind of lumped them together in, in doing CPR trainings and in different businesses. Also being aware of stroke signs because time is critical with strokes. And so we went up in Gero's honor. He wasn't feeling good that week, unfortunately. But we got some big plans in for next year, but we went up there and four or five of us from Money Wise did the walk. It's like a mile or two walk.

• 12:28Speaker 03

  And then there is the last hundred feet is the survivors walk. And if they're able, they do that last hundred, hundred and fifty feet, hopefully walking. So our plan is to hopefully see Gero continue to make improvements and do the walk with us next year and at least do that last little section. Knowing Gero, who knows, he may do the whole walk by himself. I wouldn't put it past him. I mean, we are talking about Mr. Cowboy, Wyoming State Wrestling Champ, World's Most Interesting Man, black belt in, I don't know which form of karate, but it's one of those.

• 13:02Speaker 01

  Melrose Place?

• 13:03Speaker 03

  I mean, actor, extraordinaire. I mean, come on. Music, music recording artist. I mean, the list goes on. So. But anyway, stick around. When we come back, we're going to talk about a few things when there's a lot of gurus, there's a lot of information being thrown at us and some of it sounds. You know, like, man, should I be listening to this guy? Is my financial advisor, is my investment advisor, you know, steering me in the wrong direction? We're going to talk about some of this guru stuff that comes out of the, uh, the, the, the web and whether or not, you know, it doesn't make sense? Is it complete hogwash? Or is my financial advisor lying to me? Stick around, we'll go through some of those.

• 13:41Speaker 00

  Are you nearing retirement and currently working with a financial advisor? Are you not sure if you're invested appropriately? Call our offices at 661-847-1000 to sit down with a Money Wise financial advisor for a no obligation assessment of your investments.

• 13:56Speaker 04

  No one should buy a home. Interesting. Which is the opposite of the American dream. Homes were not built for people. Homes were built for banks. The bank created that product to sell money. You can't just loan people money. You need a product in between. Like, when people start really understanding what I'm telling them, they're like, wait, what did he just say? The bank can't lend money for just money. Like, you need a reason to borrow money. Oh, you're starting a business. That's a reason, but it's really risky for the bank. What if a bunch of bankers sitting around drinking bourbon? Do we, we need to lend more money? We gotta lend money out, man. That's how we make money. We get people to give us a dollar. We lend it out nine times. We lend it out nine times. We need something to lend them money on.

• 14:39Speaker 04

  So back in the 50s, they're like, everybody should have a home. They grinned. Everybody should have a home, right? I don't know, that's pretty real. We should call it something like, the American Dream.

• 14:58Speaker 03

  There you go. Welcome back. That was, uh, one of the little clips that we wanted to talk about a little bit.

• 15:06Speaker 01

  Yeah.

• 15:07Speaker 03

  Uh, so apparently the American dream of owning a home was just the big...

• 15:12Speaker 01

  Bank.

• 15:13Speaker 03

  Big bank.

• 15:14Speaker 01

  Get together, get together, and let's get this money.

• 15:16Speaker 03

  They had to, and, and you know, before that, you know, when we were living in caves... So awesome that they made up. So, so let's talk about this a little bit. Like, is there some truth in it? Yes. Have banks gone a little too crazy with lending practices?

• 15:32Speaker 01

  Yep.

• 15:32Speaker 03

  Yes. Will they lend money to you whether or not it makes sense for you personally, financially? Yes, because they win. So, this is, this is one of those things where we've talked about it before. Like, there's these gurus and they talk about these things. And 15 motorcycle cops just drove by on the bike path in the radio room here that I'm looking out the window. That's the craziest thing I've ever seen. So, sorry, sorry to interrupt the discussion.

• 16:00Speaker 01

  Big time, man.

• 16:00Speaker 03

  Yeah. If everybody knows, we talk about the padded radio of Stockton Highway and there was literally just like 15 BPD.

• 16:06Speaker 01

  Like a chase?

• 16:07Speaker 03

  Motorcycle. I don't think they were chasing. It was like they were just cruising on the bike path. Uh, Steven, did you see the, uh, the BPD motorcycle train out there on the bike path?

• 16:16Speaker 00

  No.

• 16:17Speaker 03

  There was like 10 motorcycle cops that just drove by on the bike path. That's the wildest thing I've ever seen. Like, I, I interrupted our discussion to talk about it.

• 16:24Speaker 01

  Hey, guys, this is on a bike path.

• 16:26Speaker 03

  I don't know what they're doing out there, but it didn't look like it was lights and sirens. So hopefully there's nothing serious going on on the bike path. But anyways, point being, uh, it's, it's kind of, I would put what he's talking about almost in the same category of when people talk about college loans and whether college loans are good or bad and the college loan crisis. Is there issues with college loans? Yes, there can be. But for somebody who's responsible and takes out a responsible amount of money and gets an education, and instead of making 60 grand a year, can now go out and get a job making 95 grand a year, there's nothing wrong with that.

• 17:02Speaker 01

  Nope.

• 17:03Speaker 03

  I mean, it's, it's, it's like, I mean, it's plain and simple. It may, in mathematical sense. Now, somebody goes $180,000 into debt for college and then goes and gets a 50, $60,000 a year job.

• 17:15Speaker 01

  Not a good risk reward.

• 17:16Speaker 03

  Not a good risk or reward. I mean, it goes back to fundamental financial planning. Same thing with, uh, this gentleman, uh, Mr. Cardone that's talking about it's just a big, you know, play on the banks and they're just like fooling people into buying houses. I don't know about everybody. else, but I need a place to lay my head at night, right? I mean, you need somewhere to stay. So I have a couple of choices. I can pay rent.

• 17:38Speaker 01

  Yeah.

• 17:39Speaker 03

  Or I can buy it and use the bank's money that I don't have right now. As long as I make responsible choices. And even at a little bit of a higher interest rate, if I, it still financially makes sense.

• 17:49Speaker 01

  Yeah.

• 17:50Speaker 03

  You can end up with a paid off piece of real estate. So the, the thing is, is I always get nervous when you have gurus that go to this extreme of making, like they want to disrupt your, like, whoa, like, you're right.

• 18:04Speaker 01

  Yeah.

• 18:05Speaker 03

  Like owning a home is a complete scam.

• 18:07Speaker 01

  Yeah, that's what he said before.

• 18:08Speaker 03

  Because then what do you do? You sign up for his newsletter, you buy what he's selling.

• 18:13Speaker 01

  And he buys a home.

• 18:16Speaker 03

  Well, he supposedly, like hi- his claim to fame is he doesn't own his, he doesn't own his home. He, he, he rents it. Why would I do that? If I'm going to borrow money, I'm going to buy a, a, an asset. He's going to buy a home.

• 18:27Speaker 01

  Yeah.

• 18:27Speaker 03

  Using the bank's money.

• 18:29Speaker 01

  Unless somebody else.

• 18:30Speaker 03

  Yeah, I mean, it's just, it's just, again, it, it's one of these things where.

• 18:33Speaker 01

  One size fits all.

• 18:34Speaker 03

  And when you don't really have, like, and like I said, is buying real estate as an investment and kind of doing like the, the other thing that he's talking about, like, is that smart to do? Yes, but you can do both.

• 18:45Speaker 01

  Yeah.

• 18:46Speaker 03

  You know, like when you have a person that's completely making it seem foolish to buy and pay off a home. You have to question, okay, hold on a second. You know, like what is going on here? Because it can't be bad to borrow cheap money, even 6% is cheap money from the banks. We're talking about people who remember when, when, uh, loans from the bank were 12% and 15% and now they're at six or seven or eight or whatever they're at. You know, like, come on.

• 19:12Speaker 01

  Yeah.

• 19:13Speaker 03

  Borrow money, it, you know, in versus paying rent, maybe buy a cheaper house, build up equity, like, there's nothing wrong with that.

• 19:21Speaker 01

  There's nothing wrong with it, man. It's just a personal preference.

• 19:24Speaker 03

  And they have a cookie cutter approach. And the one thing I will say is that as a financial advisor, I have entrepreneurs. I have people that want to dabble in real estate, do different things or buy businesses and grow businesses. They, I have a different discussion with them than I do with somebody who is fine with just saving money, investing wisely, building up a nest egg, paying off their home, having enough money to live the rest of their days.

• 19:50Speaker 01

  Nothing wrong with that.

• 19:51Speaker 03

  And being able to leave a little bit of money to kids, grandkids, or even charitably inclined desires they may have. There's nothing wrong with that either. So, the reason I get almost passionate about wanting to almost get upset with this guy is because you're, you can't tell that that person's an idiot who's making smart financial decisions and has a solid little financial plan in place and sticks to their strategies, accomplishes goals, does things that they love in life, passes away and even leaves a little bit of money behind to friends, family, or charities, or whatever they choose to do. Like, don't, don't call them an idiot.

• 20:26Speaker 01

  Yeah, his message-

• 20:27Speaker 03

  Don't act like they're scammed by the banks.

• 20:28Speaker 01

  His message, in my opinion, is predatory because it only appeals to the audience. Like, people on social media platforms, whether it's YouTube, Instagram, you know, people who have no experience in finance, you know, they, they hear a message and, you know, the majority of these people are, are, are part of the get rich quick crowd. And so, you know, it's appealing to those people who never had acquired any knowledge, but all of a sudden they hear this person speak and they're like, you know what? This, this, this is, this is, I want to spread the gospel, you know?

• 21:00Speaker 00

  Yeah, it's like the clickbait, the scared tactic.

• 21:02Speaker 01

  Yeah.

• 21:03Speaker 00

  What you can fit in a 60 second video.

• 21:05Speaker 03

  It is. And here's the thing, there's nuggets of truth in what he's saying.

• 21:08Speaker 01

  For the 10xers.

• 21:10Speaker 03

  Well, no, there's nuggets of truth for even this. Dollars are, are, in our, in our economy and in our financial system are born out of debt.

• 21:19Speaker 01

  Wow.

• 21:20Speaker 03

  So, they are born out of debt.

• 21:21Speaker 01

  Yeah.

• 21:22Speaker 03

  So, when, when they loan on a house, you're right, the bank's able to basically, you know, like, I get it. But at the same time, it has been a financial system that for the last, how old's America? And even in the last 100 years, like, we've had a strong, vibrant, middle class who've owned homes and been able to participate in equity. Has it been perfect? No. Do we have, you know, things in our past? I'm just saying- It's been a wonderful system. What's a different system that exists? You know what I mean? In a different country, or a different currency, or how they do their banking systems, that's been more prosperous and allowed more people to participate with that. Meaning, you know, don't throw the baby out with the bathwater. Talk about some of these realities.

• 22:04Speaker 03

  I mean, there is some truth in what he's saying. And do banks get ahead of themselves and want to

• 22:10Speaker 01

  Of course.

• 22:10Speaker 03

  loan out more money than they should, and maybe even give a loan to somebody who shouldn't maybe get a loan, or couldn't afford a loan? Possibly, but to say that you shouldn't take a primary loan, and be paying off your house, and building equity, especially like I said, when not everybody's gonna be 10xer, Mr. Entrepreneur, you know, different things. And in my experience, I mean, I deal with people who would be, you know, Grant Cordon, I guess would say are idiots, or stupid. And they live wonderful lives full of, of, of things that are much more important to them than money, but they've been wise with their money that has allowed him to, them to focus on the things that matter most to them. While I have seen people on the other side, the get rich quick,

• 22:55Speaker 03

  you know, flip houses, or do this, or do that. I've seen more people crash and burn, and, and their financial situation get completely

• 23:03Speaker 01

  Yeah.

• 23:03Speaker 03

  upheld it, you know, like, like, stop.

• 23:06Speaker 01

  Because they've fallen from a skyscraper. You know, you get to a certain level, you get into a certain lifestyle, like you, like you've taught me in the past about the lifestyle creep. And then no longer when that will runs dry, then guess what? It feels like you fell from a skyscraper versus a person over here who's very responsible, living the modest life.

• 23:22Speaker 03

  Yeah.

• 23:23Speaker 01

  Going to work, working class people, blue collar people that's just saving money, paying their mortgage on time, paying a little bit extra to pay it down, whatever.

• 23:29Speaker 03

  And some people would, would say that that's

• 23:31Speaker 01

  Stupid.

• 23:31Speaker 03

  Wise.

• 23:32Speaker 01

  Or, or some, well, yeah.

• 23:33Speaker 03

  He says, he says it's stupid, but some people would say that that's wisdom.

• 23:36Speaker 01

  A lot of people would say that's wise.

• 23:37Speaker 03

  Live within your means, pay off your debts, you know, enjoy, enjoy the money that you've saved up. But anyways, we did have a, a comment come in before we go to break. It says TGIF, TGIF to you too. What does the Fed's recent rate cut mean for people borrowing money? Will things like mortgages go up soon? Actually, it's the opposite. If they cut rates, rates are gonna go down.

• 23:59Speaker 01

  Refinance.

• 24:00Speaker 03

  Um, they did, uh, they did, you know, a couple of previous rate cuts, or maybe at least one rate cut. It didn't necessarily equate to a huge drop in what mortgage rates were doing. Um, a couple of my mortgage friends that are posting things. They did say that they're already starting to see a little bit of a slide on interest rates on uh loans that are available now. So a Fed rate cut would mean that rates should go down on things like car loans, on things like um

• 24:32Speaker 00

  Helocs.

• 24:32Speaker 03

  Yeah, everything and mortgages. So hopefully that will equate to that. But like I said, the Fed's goal is to help the economy along when it's slowing down, but to also slow it down if things get out of control. So with kind of some of the exuberance of uh of of maybe the results from the presidency, and if rates coming down start to spur on too much too fast, you're going to see these rates probably go back up because that's the Fed's mandate. It's not political. What they're trying to do is to help, yeah, they're trying to help the uh the economy go not too fast and not too slow. Uh and you know, we still have kind of yet to see uh the impacts, you know, the soft landing.

• 25:15Speaker 03

  I don't know if it's ever been confirmed whether or not we're in a soft landing from going all the way back to 2020 and some of the Fed's spending. The big push in inflation that we saw in 2022 was when the Feds really raised interest rates to try to slow things down. Um, you know, I mean, right now, it kind of feels like we're at least had a soft landing or not a big impact from some of that spending that that got us through the uh uh the whole COVID crisis. Um, but uh but yeah, so hopefully that helps you understand a little bit.

• 25:44Speaker 00

  Great question.

• 25:45Speaker 03

  Yeah, interest rate cuts should equate to lower costs for borrowing a- across all types of loans. So hopefully we'll see that for people that are in that situation, looking to borrow some funds. But with all debt, be wise, be money wise, right?

• 25:59Speaker 00

  Right.

• 26:00Speaker 03

  Yeah. So when we come back, we're going to be joined by Ron Pierce. He is from the Mentor Field Air Museum. We're going to be talking about wings and wheels. Stick around.

• 26:08Speaker 00

  Have you been putting off your finances? Seize the day. Call the Money Wise office at 661-847-1000. Or email [email protected] for more information on how our financial advisors can help your financial situation.

• 26:32Speaker 03

  Welcome back.

• 26:35Speaker 03

  This is Money Wise. Me and Latroy are flying like eagles. Especially now that we have Mr. Ron Pierce from Minterfield Air Museum joining us here in the studio. So Ron, have you been on the show before?

• 26:51Speaker 05

  Yes, I have.

• 26:52Speaker 03

  You have. Just been a few years and I wasn't on the show when you were on.

• 26:55Speaker 05

  Gero.

• 26:56Speaker 03

  Gero. So we've been talking about Gero. He's got recovery going on, took his first steps this week. So very good to hear about that. But we want to know a little bit more about Wings and Wheels. So we got the 7th Annual Event going on tomorrow out at the airfield. Tell us a little bit about what's going on.

• 27:13Speaker 05

  Well, first thing, Wings and Wheels is our biggest fundraiser that keeps the doors open to Minterfield and history. We're going to have hundreds and hundreds of show cars. We will have airplanes, helicopters, we will have military equipment. We are even having helicopter rides, airplane rides, all kinds of things out there. And it's open for everybody.

• 27:43Speaker 03

  Awesome. Yeah. And so you kind of have a, you have a great breakdown of what's going on in the morning. So obviously get out there as soon as you can and enjoy it. So if you don't have anything going on tomorrow, get out there and jump in there. Adults are $10, veterans, first responders, seniors, $5. Children's 12 and under are free. So whether you've got kids in that range or grandkids, what a great, great Saturday event to take them out to. We mentioned earlier that Ms. Claffey here in the office at Money Wise, they love taking their yellow Mustang out there. It's been something that they've enjoyed for years. And so they've talked about this. So it's really great to have you on to talk about this event. So spectator gates open at 9. You've got the National Anthem at 9:30.

• 28:29Speaker 03

  Got some big band starting the first set at 10. So you said maybe some dancing can go on?

• 28:33Speaker 05

  Yeah. That is a 20-piece big band playing 40 music. Glenn Miller, Jimmy Dorsey. And all that kind of stuff that is really, really nice to dance to.

• 28:46Speaker 01

  Yeah, nice.

• 28:47Speaker 03

  So tell us, uh, tell us a little bit about the, the air museum. What, what do you guys, uh, what's the Goldie Museum? What kind of, um, regular, I guess, uh, planes and things that you guys take care of or, or keep for the community out there?

• 29:02Speaker 05

  Well, Minterfield Air Museum is housed in one of the, one of the few remaining buildings. We're housed in the firehouse that was built probably prior to Pearl Harbor. And we are there to keep the history of Minterfield and the 11,000 cadets that go, went, that went through basic training there and graduated to go on and give their all to the war effort. And some of the history of Kern County.

• 29:38Speaker 03

  Yeah. Yeah. So talk a little bit about that. So a lot of people don't realize maybe, uh, how Minterfield was, uh, integral in, in Pearl Harbor and when that all happened. So talk a little bit about the history of the airfield.

• 29:52Speaker 05

  Well, they went in and, and purchased some land there, uh, prior to the war. Uh, they came in in suits and they were government people and they told everybody that they were with AAA. And they were just looking for a place to build a office building. And after they got a hold of that land, because it had, it was, it was a nice road going into Bakersfield. It wasn't in Bakersfield, had a railroad, uh, right next to it to take a bring a siding in. And the land was farmland. They didn't have to tear anything down.

• 30:28Speaker 03

  Yeah.

• 30:29Speaker 05

  So after that, they, everybody found out they were building. Which ended up being the largest basic training field west of the Mississippi, graduating over 11,000 cadets.

• 30:43Speaker 03

  Wow. When did, uh, when did they stop doing training there at Mentor Field? What year?

• 30:49Speaker 05

  Shortly after the war, they, uh, they quit training because they didn't need the pilots for the war. Uh, they did train some, some, um, Chinese there. They also cha-change, uh, a company came in and trained some Indonesians to, eh, 60 of them to come back or go back to Indonesia and start their air force.

• 31:11Speaker 03

  Okay. So, shared some of the, uh, the knowledge and, and training that we gave our people to go back to their military efforts?

• 31:19Speaker 05

  Yes.

• 31:20Speaker 03

  Yeah. All right. And so, uh, other than, uh, the, uh, museum and, and some of the different airplanes and stuff that you guys have out there, do you, is there anything else that you want the listeners to know about the event?

• 31:32Speaker 05

  It is, it is something for everybody. We have farm equipment, old antique farm equipment in there. We have, uh, helicopters. We have a, uh, an OH6, uh, helicopter. We have a WarWar1, uh, DR1, uh, Red Baron, German Red Baron replica airplane in there. There's jets, there's, there'll be twin-engine airplanes, there'll be home-built airplanes. Uh, there is something for everybody.

• 32:07Speaker 03

  So, when you guys put this on, is there kinda like a crew of people that you reach out to and say, "Come and join us"? Cause you guys, that's not all just Mentor Field's equipment and stuff that you're talking about, it's people that come in for the event?

• 32:20Speaker 05

  We have people come in, that come in and, and help us. Uh, it's usually, uh, a member of the museum has a friend that, uh, gets talked into it and comes out. It, it takes about three or four days to get it all set up.

• 32:36Speaker 03

  Mm-hmm.

• 32:37Speaker 05

  Uh, we're setting it up now. Uh, we'll be out there at 5 o'clock in the morning to get it set up before the cars coming in at 6:00. And, uh, we'll, when it's over, we'll break it down and, uh, what we don't get finished, we'll come out the next day and put all the airplanes back in our hangar, the jeeps, the fire trucks, uh, everything.

• 32:59Speaker 01

  I know you guys got barbecue out there, right? While you guys doing all that hard work?

• 33:03Speaker 03

  Barbecuing?

• 33:04Speaker 05

  There's all kinds of stuff going.

• 33:06Speaker 01

  Now, was it, was it intentional for you guys to have this before Veterans Day? Is this, is this just a tradition you guys have?

• 33:13Speaker 05

  This, this.

• 33:14Speaker 01

  Seemed like perfect timing.

• 33:15Speaker 05

  This, we try to do it every, um, after the time changes.

• 33:24Speaker 03

  Okay.

• 33:24Speaker 05

  Because we get cars in at, uh, six o'clock in the morning.

• 33:29Speaker 03

  So you have light.

• 33:30Speaker 05

  And we like to have daylight. So that's the reason that, that it's there. We try to do it the, the, uh, the second, uh, Sunday or second Saturday.

• 33:41Speaker 01

  For November.

• 33:41Speaker 05

  Right after the, right after the time change. And then also coming up, we also, I have a friend. It's called S- Santa Claus.

• 33:54Speaker 03

  Oh, yeah.

• 33:55Speaker 05

  And he actually will fly in on the first Saturday in December.

• 34:01Speaker 03

  Yeah.

• 34:02Speaker 05

  He lands, pulls up to our, our, our hangar, gets out, him and his, his wife, the Mrs. Claus, gets out of their airplane and they come in and we have probably be four or 500 children out there and every one of them gets a stuffed animal.

• 34:18Speaker 03

  There you go.

• 34:19Speaker 01

  There you go.

• 34:19Speaker 03

  Yeah.

• 34:20Speaker 01

  So, uh.

• 34:21Speaker 00

  Does he, does he drive a Challenger or?

• 34:24Speaker 03

  Jet, jet powered?

• 34:25Speaker 00

  Yeah.

• 34:26Speaker 03

  Jet powered or a sleigh?

• 34:27Speaker 00

  Does he like the muscle cars still or?

• 34:28Speaker 05

  No, no, it's a prob- this is, he, he, he comes in in a prop plane.

• 34:33Speaker 03

  Oh, he keeps it classic.

• 34:34Speaker 05

  Yeah.

• 34:35Speaker 03

  Yeah, it's got a bigger gas tank on it though, no?

• 34:37Speaker 05

  Oh, uh, he has to stop several times, but, uh, he gets down there in plenty of time.

• 34:43Speaker 03

  So forgive my ignorance, when I, when I think of interfield, so a lot of these people, they'll fly in their planes and stuff for the event?

• 34:51Speaker 05

  Yes, we'll have airplanes flying in from all over and they'll be, uh, showing them. Uh, you, you, you used to, usually most of them, you will be standing by their airplane. You can sit there and talk to them, find out where they come from.

• 35:05Speaker 03

  So, do you guys have a, a tower or how, how's communication?

• 35:09Speaker 05

  Uh, we don't have a tower, uh, uh. Unlucky that the county thought it was worth money and they scrapped it a long time ago.

• 35:22Speaker 03

  Dang it.

• 35:23Speaker 05

  But we do have communication with the airplanes that are coming in.

• 35:27Speaker 03

  Okay, I was just all hand signals or I didn't know, but so Ron, tell me a little bit about yourself. When did you get involved with the museum, obviously passionate about flight? I mean, tell me a little bit about what, when your relationship with the airfield started and just a little bit of your history.

• 35:45Speaker 05

  If you've got a calculator there, I was out at Minter Field at six or seven years old because my dad worked out there in the instrument shop.

• 35:56Speaker 03

  Gotcha.

• 35:57Speaker 05

  So I've been there quite a while.

• 35:59Speaker 03

  Yeah.

• 36:00Speaker 00

  Well, my first job in the media.

• 36:02Speaker 05

  I've had a couple of businesses, the last business when I sold it, I retired and it just happened that I went out there a few times and they said, you're hooked.

• 36:16Speaker 03

  Yeah, yeah, well, because, because.

• 36:18Speaker 00

  My first job, my first job in the news, I was 17 years old, which I'm 40 now. And Ron was one of our first interviews talking about Minter Field, so it's awesome.

• 36:30Speaker 03

  Oh, you can't hear him?

• 36:31Speaker 05

  Oh.

• 36:32Speaker 03

  That silver.

• 36:34Speaker 00

  But no, no, I was, I was saying, my first job was back in the day with Jeff Lamucci and Ralph Bailey. We used to do a morning news show and Ron was one of our first guests on that morning show 20 years ago.

• 36:46Speaker 03

  And he's still cruising around and supporting the airfield. It's so great, Ron, really, really appreciate what you do for our community, a big piece, obviously, of our history and what went into that and the, I mean, our, what we did for the war efforts and all those things. It's so neat that you're carrying on that legacy and out there working hard, raising funds for the air museum. And I think it's just a great thing. So if you've got kids or grandkids, I don't, I don't know of any kids or grandkids.

• 37:14Speaker 01

  You've got a grandkid.

• 37:15Speaker 03

  Yeah, well, not yet.

• 37:17Speaker 01

  You have to wear that Santa Claus.

• 37:18Speaker 03

  Yeah, I'm going to go out there for Santa Claus and it's going to be a couple of years until they know what's going on, but. But yeah, just what a wonderful event to go out and to support the airfield. And then, uh, when is the, uh, the, the Santa Claus one?

• 37:30Speaker 05

  It'll be the first Saturday in December.

• 37:33Speaker 03

  First Saturday in December, so keep that on the calendar as well. So, thank you so much for coming in, Ron. Anything else you want to have the listeners know?

• 37:40Speaker 05

  Do you know where the fir- you know what a U2 spy plane was?

• 37:43Speaker 03

  U2's spy plane?

• 37:45Speaker 05

  Yeah.

• 37:45Speaker 03

  Nope.

• 37:46Speaker 05

  Nope. Maybe some of your listeners do. It's what they flew over Russia, high enough that the Russians couldn't shoot it down.

• 37:54Speaker 03

  Okay.

• 37:54Speaker 01

  That's gonna be there, huh?

• 37:55Speaker 05

  Do you know where the first 55 were built?

• 37:57Speaker 01

  Minterfield.

• 37:59Speaker 05

  Oil Dale.

• 38:00Speaker 03

  Oil Dale?

• 38:01Speaker 05

  The first 55 were assembled in Oil Dale.

• 38:06Speaker 03

  Really?

• 38:07Speaker 05

  Close to the Naughty Pine Restaurant.

• 38:10Speaker 03

  You're kidding me?

• 38:10Speaker 01

  Why can't that little spot right there?

• 38:12Speaker 05

  Come out, come out and we'll show you pieces.

• 38:14Speaker 03

  There you go. There you go. You learn something new every day, folks. So, next time you're eating a 15-pound burrito from Naughty Pine, you can know that, what was it called again?

• 38:26Speaker 05

  It was a U2 spy plane.

• 38:28Speaker 03

  U2 spy plane. That's so awesome. Thanks for keeping all that history alive and, and, uh, keeping that for the next generation to be able to learn from. And what a wonderful event for people to go, uh, participate in. So, if you don't got anything going on tomorrow, or if you do, cancel your plans. Go out to Minterfield 7th Annual Wings and Wheels. Stick around, we'll be right back.

• 38:48Speaker 00

  If you're a business owner who provides a retirement plan for your employees, contact Money Wise Wealth Management to see if you're maximizing your options and minimizing your liabilities. Money Wise 401K plans are customized to you and your company's needs. 661-847-1000. That's 661-847-1000.

• 39:19Speaker 03

  Welcome back. What a great conversation with a local legend, Ron Pierce. Still out there at Mentor Field Air Museum making it happen. He was even giving us money wise tips at the break. That he's made it available for charitable contributions. If you're wanting to make it directly from your retirement account, which is something we've talked about here on the show that some people didn't realize that, that if you have some of your funds go directly to charities, you do not have to claim it on your taxable income. If you're of RMD age, required minimum distribution. So it is a way to be money wise in retirement. Ron was bringing it up to us like he Captain Ron.

• 40:01Speaker 03

  He is an advisor himself, but he's very passionate about the history that is there out there at Mentor Field. So thank you for all of his hard work. Get out there and support it if you can. It sounds like a wonderful event. Got the Santa Claus thing first Saturday in December. So just lots of cool stuff. I don't know many kids that wouldn't find it at least interesting and intriguing. To go out there and to see some of these airplanes, military vehicles, different things. So kudos to him. We did have a couple of comments come in. Bought my first home. It goes back to what we were talking about before. Bought my first home 30 years ago and without the bank loan, we would have been homeless.

• 40:42Speaker 03

  Now we own multiple properties and living money wise. These youngins will have to learn on their own. Glad to hear Gero's update prayers. Thank you for the comment and it's, it's true. It's, it's again, it's one of those things where man, these gurus, you know, they, they, they have a thing that they're selling or a vibe that they're like trying to get all these people hooked up to their newsletter and can you find success doing what they're doing? Sure. But I would probably think that more people will crash and burn trying to follow their

• 41:15Speaker 03

  Policies or their efforts versus tried and true, live within your means, you know, borrow wisely if you borrow at all. We, you know, we live in California, it always cracks me up even like, you know, the, the Dave Ramsey, don't ever borrow even for your home if you can. We don't live in one of those communities where, you know, you can buy your first house cash. Make wise decisions, borrow wisely, obviously try to keep expenses low. Don't go out and buy a house that's way above your, your means. Save a little. More people can do that with probably less effort. And if people think that that's foolish, let them think you're foolish because I've seen lots of people, I work with lots of people that

• 41:58Speaker 03

  are living on the fruits of their labor and wise decisions over the years and being able to participate in the things that they love and support people around them even if needed because of all their wise choices through the years. So don't fall prey to some of these people that are trying to get social media clout and different things. And like I said, Grant Cardone's got a lot more money than me. Kudos to him. But I live within my means. I make wise choices and I just try to make the most of what I do have. And you keep doing that, you might be like this money wise listener here that said, now he owns multiple properties and he's living money wise. So kudos for you. Another comment came in, said, love Ron, had no idea he was still out at Minter Field. And then it goes

• 42:42Speaker 03

  on to say, but could the changes in policies like tariffs or immigration affects the Fed's choices on interest rates? Isn't that the norm on election years? Thanks, guys. Yeah. Yeah, definitely. Yeah. All these, you know, I mean, there's, one of the things that there's unintended consequences, we've talked about before. So a tariff can do some great things, but it's going to have consequences on the back end on other things. So that's, our, our economy is so dynamic and there's so many things that go into it. There's no way to just say that this is the simple fix for our economy. There's unintended consequences from policies and tariffs, immigration, good and bad, both.

• 43:24Speaker 03

  Ways, there, there's so many things that, that go into affecting what the feds are going to have to do with interest rates. So it's one of those things where you can't simplify it down, but the things that we've been saying for 20, 25 years on this radio show are still true today. That's right. Right? Save your money, live within your means, get a good allocation that makes sense for your situation that you're comfortable with, be as aggressive as possible and stick with it and be money wise.

• 43:51Speaker 06

  Securities offered through SCF Securities, Inc., member FINRA/SIPC. Investment advisory services offered through SCF Investment Advisors, Inc. SCF Securities, Inc. and Money Wise Wealth Management are independently owned and operated.