12/12/24 Massive MLB Contracts: Juan Soto vs. Ohtani, Egg Prices on the Rise, and the 5% Portfolio Rule

The Moneywise Radio Show and Podcast Thursday, December 12th 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

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

• 0:40Speaker 00

  Now, let's start the Money Wise Show.

• 0:43Speaker 03

  Let's do it. Let's start the Money Wise Show. I'm your host today, Chris Pelster, joined with?

• 0:47Speaker 00

  Frank the Tank.

• 0:49Speaker 03

  Frank the Tank. Oh, I don't know. I think, I think that nickname-

• 0:52Speaker 00

  I'm seeing double. I'm seeing double.

• 0:53Speaker 03

  There can only be one Frank the Tank in an office, and so we are gonna have to decide that. We, we both played pretty mellow at the Christmas party, so I think the name is still up for grabs.

• 1:04Speaker 04

  Yeah, the wives were there, so we had to, you know, be a little cautious.

• 1:07Speaker 03

  Yeah, I do think someone did go home before somebody else, so I don't know if that's enough to claim the victory. Ah, you had some stuff to take care of. I get it. But, um, but yeah, so, uh, yeah, Frank the Tank, the name has affectionately been thrown around at me occasionally when I'm having a good time. And when Frank got here, he just assumed because his name is Frank, he's Frank the Tank. I don't know.

• 1:31Speaker 04

  No.

• 1:32Speaker 03

  Well, anyways, let's jump into it. This is the Money Wise Show. We are live from the padded radio room off Stockdale Highway. We are live on ESPN, 1230, 101 FM. And you can always stream. Hopefully, wherever you're listening, you're gonna enjoy a great show today. We don't have a guest, but we have a wonderful show. We have got some great messages that come in, which you, the listeners, are what make the show, podcast, great, because we can answer your questions that you're curious about. And if you're curious about it, there's probably a handful of our listeners that can learn something from, um, your concern. So appreciate it. Keep those coming in. 396-1000. Again, 661-396-1000. If you want to shoot us a message or a question, um, you could even be live if you're listening live, but if it's a podcast, it doesn't work that way, so.

• 2:15Speaker 03

  But yeah, so the markets continue to be interesting, little bit of a cool off, not majorly, but but did pull back a little bit today on some of the major indexes. A little bit bigger moves, but anything that you saw that kind of really sparked things off or just a little bit more so just cooling down before the end of the year?

• 2:34Speaker 04

  I think most of it was influenced by the economic economic data showing, especially in the unexpected rise of the unemployment benefits applications and higher than anticipated wholesale inflation numbers, the PPI. So that could have been driving some of the markets down.

• 2:53Speaker 03

  Yep. So you also saw a couple of the the tech giants, Adobe, Western Digital, a couple of these different companies saw a little bit of a cooldown today, so maybe a little bit of they've probably been on a rampage for the last 16, 17 months and maybe just doing a little cool off before the end of the year. And I saw Warner Bros. had a huge day on the market, and maybe that's just because they're assuming everybody's gonna take off work for the next three weeks and do nothing but watch movies, possibly, sweatpants and everything else. But but yeah, with all that being said, there was a little bit of a down day on the market, about a half a percent across the board. S and P was down about 32 to 6,051.

• 3:35Speaker 03

  Nasdaq ended at 19,902, which is about six tenths, almost seven tenths of a percent pull back there. And Dow Jones, the dumb Dow we call it, 43,914, down right at about half a percent as well. So that's kind of the markets and what was going on. We always try to say, you know, breaking through the junk, you know, the headlines can be misleading. They're always trying to make big, you know, predictions and stuff on headlines to get you to click on things. It has been a phenomenal year on the markets. It's been a phenomenal 16, 17 months. So we say these are the times to, you know, think about things, rebalance things. We were saying this a lot going into the elections. Many, many people were scared about actually the opposite happening.

• 4:18Speaker 03

  It's still as good advice to say, look at your allocation, make sure your risk level lines up with your stock exposure lines up with where you're at with your planning, the needs for those funds. Um, rebalance things if needed, which is rebalancing is one of the, the comments that came in that we'll talk a little bit about. Uh, here in a little bit, but um, it's just one of those things where it's still a great time towards the end of the year. The market's been kind of moving up and up and up, even after the election, there was a little bit of a, a melt up. It's kind of been called before where people were already saying it was overvalued and it still just kind of continues to climb. So it's not fear and panic that we try to talk about here at Money Wise, but it's definitely times and, and there's some, some weather of the markets that you can think about to go, hey,

• 5:00Speaker 03

  reevaluate things. If you have some real short-term invested monies, you might, you know, think about taking a little profit off the table possibly, depending on what your goal is and what the purpose of the funds are. Um, long-term or longer-term retirement funds, even if you're retired and you're allocated appropriately, major changes may not need to be made or anything, just rebalanced and on a consistent basis, which that's one of the, uh, the comments we'll get into. Actually, we can jump into it because it totally segues way right in there.

• 5:29Speaker 04

  Yeah.

• 5:29Speaker 03

  Um, a comment came in.

• 5:32Speaker 04

  Do you want me to read it?

• 5:32Speaker 03

  Yeah, read it for us.

• 5:34Speaker 04

  Okay. So the question came in, uh, how often should you consider rebalancing your portfolio each year?

• 5:43Speaker 04

  So.

• 5:44Speaker 03

  Yeah.

• 5:46Speaker 03

  Yep. So how often should you consider rebalance your portfolio? So somebody was talking about this. I'm sitting here saying this is something you should consider. So it's a great segue into, um, how often should you consider doing it? Well, first things, what we can talk about is the three, uh, ways that most investors rebalance their portfolios. There was a study that was done by the Vanguard team. Um, so you, you might know Vanguard funds or maybe your 401K is in a Vanguard 401K or something like that. But they did some studies and they looked at, uh, what methods are most often employed by investors, advisors and asset managers for rebalancing. There's three major ways that, uh, people do this. Okay. So there's what's called calendar-based rebalancing.

• 6:26Speaker 03

  It's just setting a frequency, whether it be quarterly or maybe one time per year. You rebalance the portfolio to the, to the desired allocation that you're wanting to have with your portfolio. So you're not only thinking about your stock and bond mix as far as rebalancing, but you might also be thinking about your sex, your sector exposures. So even within your stocks, you know, you might have all these different sectors that perform differently. And so technology, obviously, like we mentioned, has been going crazy. So you're looking at that and you may say, hey, we're going to trim that back. But that would be either quarterly or annually and just based on a calendar, nothing else. Another one that's used is threshold based rebalancing,

• 7:11Speaker 03

  which is where you might have a certain number in your mind of where you want some of those numbers to be. And so you will trigger a rebalance if the portfolio hits that. So if say your goal was to have, you know, 30% in technology stocks and all of a sudden, you didn't want it to go over 45, well, technology stocks have been doing really good. It's growing and growing and growing. Technology stocks gets up to 45 of your port, 45% of your portfolio or stock exposure. You trim that back to 30 and then you kind of wait and see what happens. And if the technology stocks go down, well, you got to sell high based on that threshold that was reached. And then maybe there might even be a pullback in tech companies in the next, you know, couple of quarters,

• 7:54Speaker 03

  where now it goes down and then you rebalance back up to 30, which means you're buying low. So you're trying to do what we always say is buy low and sell high. And that's what rebalancing is consistently trying to help you to do. Given your, you know, your, your, your desired allocation or even sector exposures that you're looking to hold. And then the third option is kind of a mix of the two. So, so not, not anything special, other than just if you understand calendar based and you're doing it regularly at a certain time. One of the things that calendar based helps you do is to keep emotions out of it. Right? Cause it's just, I'm going to do it once a year. I'm going to do it quarterly regardless of what's going on. You're not trying to necessarily time the market or think too strategically about it.

• 8:39Speaker 03

  You're just saying, okay, every quarter or once a year. This is what the market's done. This is how my allocation's been impacted and I rebalance it. Now, some people may not even really understand this type of a concept because maybe they have a 401k and they might be in a target-based fund that's either based on their, their age or they may be on a risk profile fund that is like, I want to be aggressive. And so it has 15 funds in it and it's aggressive and there might be some sort of management or some criteria that they're sticking to for you. Uh, but if you are picking individual funds or different things, like even in your 401k, it can get out of balance where you want to have a process of how you're rebalancing it. Or they can do it for you in your 401k.

• 9:24Speaker 03

  It's one of the things that we talk to clients about, especially as they're getting close to retirement. They might want to come in and look at their 401k and think about whether or not they should rebalance. Um, free consultations for people that are getting close to retirement. So you can at least better understand how you're invested and whether or not you're taking on too much risk. Um, and so, uh, you know, that's, that's a great thing to take, take advantage of if you're getting close to those.

• 9:47Speaker 04

  I think, I think you bring up a good point too, especially with the 401k. Uh, to have that advisor look over what it is that you're, uh, invested in because most of the times people don't know what they're invested in. It could be the completely opposite uh, investments compared to their, like what their goals are in their timeline.

• 10:04Speaker 03

  Yeah.

• 10:04Speaker 04

  So if I'm in my like late twenties working and I still have 30, 40 years in the workforce, but I'm invested in something very conservative. Obviously that's not the right, right objective. So having a second pair of eyes, like an investor to help you look into your 401k plan and see exactly how you're set up can go a long way.

• 10:26Speaker 03

  Yeah. And I'm a big fan of just trying to understand how you're invested and why you're invested. The more and more you can do that, the more and more, um, peace of mind you're going to have during market volatility, during scary times. If you really don't kind of have an idea of how you're invested and then you see it go down, there's an extra set of panic because you really don't, you don't even kind of understand how you're invested and what should it look like how I'm invested in it. It creates a whole nother. And I tell people that Wall Street is complicated, the mutual funds you might be in may be over complicated, but you can start to really build a base of understanding. You can start to understand your risk level, your profile and how you're invested. I mean, we can even run

• 11:08Speaker 03

  stress tests on portfolios using a couple of different tools where, you know, if you're invested like this during 2008, this is what your portfolio would have looked like. And it's a wake up call for some people. And like, like we said, on the other end, you say, if you keep investing like this, you're only going to have X amount of dollars for retirement. So you actually need to have more stock in your account. You need to take on more calculated risk so that you can grow your assets and be able to transition into retirement and replace your income. So there's a lot to consider there, though. So great question, though, about when to rebalance your portfolio or how to rebalance it. So hopefully that helps you out. Obviously, keep learning, keep growing. And if you do want a second set of eyes on a 401k or a mix you have, we do offer

• 11:49Speaker 03

  those consultations here at MoneyWise. That number, though, is 847-1000-661-841-847-1000. Let's take a quick break and we got a couple of the great questions that came in that we can go over.

• 11:59Speaker 00

  Don't forget, MoneyWise is more than a radio show. We're an independently owned, local wealth management firm with 60 plus years of collective experience. Our financial advisors are here to help you, Kern County. Together, let's be smart, be safe, be money wise. Fly me to the moon. Let me play among the stars. Let me see what spring is like on Jupiter and Mars.

• 12:31Speaker 03

  Love it. I can't listen to this without wishing I was at either, I mean, like some like Olive Garden or Fregatti's, right?

• 12:40Speaker 04

  Yeah, I can see Fregatti's. Fregatti's for sure.

• 12:42Speaker 03

  Olive Garden, Olive Garden's way up there. Is that what you're saying?

• 12:47Speaker 00

  Is Olive Garden still around?

• 12:49Speaker 04

  Yeah, see, see, see, that explains it right there.

• 12:51Speaker 03

  Has to be, dude.

• 12:52Speaker 00

  I know we talked about it a couple of weeks ago as one of the, uh, taking a dump business or taking a dump segments.

• 12:57Speaker 03

  Yeah, yeah, well, there, I won't speak for their stock. I think Olive Garden, it's, it's, dude, I, we used to eat it more often because MoneyWise used to have an office right next to Olive Garden.

• 13:07Speaker 00

  By, uh, off, uh, Bing and Stein?

• 13:09Speaker 03

  Those four, those four towers or whatever that are right next to Olive Garden. So, uh, man, all you can eat bread and soup or whatever it was. I was all about it. Might be why I have a weight problem, but anyways, uh,

• 13:20Speaker 00

  Olive Garden.

• 13:21Speaker 03

  There's been a few times that like randomly we were like, oh, you know, Olive Garden bread and salad sounds good. Like let's head over there. It is always packed.

• 13:30Speaker 00

  I believe it.

• 13:30Speaker 03

  Yeah. So, yeah, I guess maybe other people don't, uh, have, um, different things out and you cannot, you cannot even compare those two. Uh, the local legend, uh, that is, um,

• 13:44Speaker 00

  Fergati's?

• 13:44Speaker 03

  Fergati's. I mean, come on. Mother's recipes here in town available to you.

• 13:50Speaker 00

  And, and it's in that new location I love because I hated parking in that area.

• 13:55Speaker 04

  Oh, yeah.

• 13:55Speaker 00

  I couldn't get out. I'd have to like, no, I'm just gonna skip it, but now you're making me hungry.

• 14:01Speaker 03

  There you go. There you go. Well, hey, that was a great conversation on, um, rebalancing portfolios. We talk about it all the time. It is one of the things that you can do on a consistent basis to try to stay appropriately invested based on your risk level and time horizon. Um, you know, it keeps you from feeling like you have to go in and do major things, uh, usually at the wrong times when the markets are doing something that you're not feeling comfortable about. That's when we tend to make, uh, bad decisions as investors. Uh, so stick to a plan, have a, a strategy, a risk level, an allocation that you're comfortable with. Um, rebalance it on a, on a basis that makes sense for your situation and, and stick with it. Uh, Steven, did you want to read the other one? We had one comment about a 5% rule or something?

• 14:43Speaker 00

  Yeah. It says, what is the 5% portfolio rule? And yes, I'm the same dude that asked about the, uh, the other rule a week or two ago. I'm reading the law of money and street or smart portfolios. Um, I'll say I've learned more from your program than the books I've been reading. Have you guys ever thought about, uh, putting a book out?

• 15:05Speaker 03

  Yeah, so here's the problem. Called Frank the Tank. Yeah, here's the problem. We try to do a good job on the show. If we write a book, I don't know how much you'll learn from it, you know? So it'd have to be lots of pictures in it and no. A coloring book? We've never, we've never thought about a book, but maybe who knows eventually, but there's definitely some good books. So we love you bringing that up because that is a good, good book to read to educate yourself and to learn more about it. Um, the 5% rule, there's actually a couple of 5% rules that people talk about. So, um, we'll talk a little bit about it, but one of them is an investment rule. Where the rule, uh, states that the investors can generate about 5% of their investment portfolio as income each year without reducing their capital.

• 15:50Speaker 03

  This is based on long-term investment returns of about 9.8% minus fees and inflation. Point being that if minus fees and inflation, if you can still beyond that average 5% in your portfolio, you can pull out 5% and never really be eating into your principal. Um, people also call that, there's a 4% rule that would probably be a little bit considered more, um, more on the conservative side, uh, the 5% if people are using that, you're obviously then maybe have a little bit more appetite for risk. You're willing to hold a little bit more stock, which obviously in the long run is good, but you can also push yourself into some risks,

• 16:29Speaker 03

  which is called sequence of returns risk where you're taking 1% more, you're taking 5% instead of 4% out of your portfolio. So if the market has a tough year or two and you're taking out a full 5% versus a 4%, in the long run, it will impact your portfolio and longevity a little bit more than if you're only doing the four. But some people do also call that the 5% rule, but there was something else Frank, didn't they, they talk about as far as the 5% rule? 5% portfolio rule?

• 16:57Speaker 04

  Uh, I mean, as far as the investment rule, I believe it was not investing more than 5% of your portfolio in a given stock or bond. So that way you're diversify, diversifying yourself from major risk or tailwinds, uh, from certain industries, sectors or businesses alike.

• 17:18Speaker 03

  Yep.

• 17:20Speaker 04

  As far as that goes.

• 17:22Speaker 03

  Yeah, I think a lot of people, you know, like rules of thumbs, you know, and some people have different thoughts. Um, I mean, I've heard instead of 5% as far as in one individual stock, some people are comfortable with 10. So they're fine with holding as much as 10% of their overall holdings in one individual stock. Um, the thing that we've talked about before and we've talked about like, uh, social media influencers and stuff and, you know, they say that, um, diversification is boring and, and, uh, you know, like Warren Buffett doesn't, you know, diversify, you know? And it's like, the thing that I remind people is Warren Buffett like literally can pick up, board members to these different companies, call them, ask questions. I mean, it has to be public knowledge.

• 18:03Speaker 03

  It's not like he's doing insider trading, but I'm saying he's, he's able to stay in tune with that stock. And so he's fine with a very, very high level of concentration in an individual stock. Most individual investors are not taking the time to really follow the numbers. So that's why you start to come up with rules of thumbs. Like, you know, if I'm going to take a stake in, you know, say Nvidia. I mean, it's a big stock that everybody's talking about right now. Well, you, you might not want to hold more than, you know, a rule of thumb, like I'm going to hold this much. And then it goes back to rebalancing. When it goes up like crazy, maybe you trim it back and you put some of that to other more diversified. So those are the things that you try to do on a consistent basis because we have seen multiple times, I've seen it through my career.

• 18:47Speaker 03

  Where some people have this really, really fun ride up on a stock. But unfortunately, the, the, the steam runs out and it goes down just as much. And so over time it does okay. But it's like, why would you just want to ride it up and then ride it all the way back down possibly? Or just have a rule of thumb of how much exposure you're comfortable with, with one individual stock. Cause what, what this rule is trying to do is to say, hey, I don't want to put so much weight on one individual stock, even though it could go great. It also could have to file bankruptcy, could have legal issues, could have geopolitical issues, could have, um, you know,

• 19:22Speaker 04

  Business risk.

• 19:22Speaker 03

  Business risk, all kinds of things. And so I don't want to put too much of my overall portfolio all concentrated in. One individual stock or or sector like you said, so.

• 19:32Speaker 04

  Yeah, a- again, these these general rule of thumbs are for the mass affluent that just, you know, don't really want to pay attention to the market. And so like this is the 5% rule.

• 19:42Speaker 03

  Right.

• 19:42Speaker 04

  Right. But if you're if you're wanting more exposure, if you're wanting to take on more risk, then that's where we can sort of customize and see exactly, okay, let's let's see where you fit on that line.

• 19:52Speaker 03

  Yeah, because remember, you know, like diversification may be a little bit boring, but it is a key strategy for reducing risk and protecting investors from putting all their money into one place. You know, the eggs in one basket discussion that's that's consistently had. When securities or assets are not closely correlated, one may rise while another falls. And that's why divor- diversification can help you out over time. And, you know, it's really easy to look in a rear view mirror and go, well, man, if I just would have held that one stock. I mean, even Amazon's a good example. People are like, why didn't you? Why didn't you invest a bunch of money in Amazon? People don't realize the fir- the first 10 years of Amazon, it was a major roller coaster. They were on the verge of bankruptcy multiple times and really like crashing and burning.

• 20:34Speaker 03

  And humongous swings up and down, and they weren't showing a profit on paper for almost 15 years. So when you, when you know, like as an advisor myself, if I would have said, hey, we're going to hold this stock. That's going to be an absolute roller coaster. They're not really going to make profits probably for 10 or 15 years. And, you know, they're going to be on the verge of bankruptcy multiple times. You're going to read headlines that says Amazon might be, you know, closing shop. Uh, you'd be like, no way I want to invest in that. But now it's easy to look back and see the rear view mirror. Obviously, they were playing a very long game of anticipating, um, uh, retail, uh, uh, customers changing habits, changing behaviors.

• 21:13Speaker 04

  Yeah.

• 21:14Speaker 03

  Um, and and even skyrocketed even further is global pandemic. And all of a sudden, everybody's ordering stuff.

• 21:21Speaker 04

  Amazon Prime.

• 21:22Speaker 03

  Amazon Prime, it like, like it already was starting to change behavior. Well, if that didn't cement everybody just getting stuff delivered to their doorstep, then I don't know what would. But hopefully that helps you understand a little bit. I mean, they even kind of use that rule of thumb, even investing in real estate. Um, it says did not have more than 5% and one holding. I mean, that that's a, that would be pretty interesting though, because I don't know how many. Real estate holdings you have to have to only have 5% in each of your holdings. That would be pretty interesting, but again, just investment diversification rules of thumbs. And so, somebody may be okay with a little bit more or a little bit less. But so whether you're talking about the distribution 5% rule or the investment diversification rule, hopefully that helps you out. Thanks for the comments, questions. Keep reading and keep bringing

• 22:04Speaker 03

  questions to the show because you make the show great. There was another one that came in. I received an email from Equifax saying that I had a data breach settlement and was scared to click on the link, but would you happen to know if this site is real?

• 22:20Speaker 00

  And they shared the link.

• 22:21Speaker 03

  And they shared the link. They want us to click on it. I clicked on it and my laptop hasn't worked for about five or 10 minutes.

• 22:28Speaker 00

  It's smoking, it's smoking.

• 22:30Speaker 03

  Yeah, yeah. No, no, I lived on the wild side. I clicked on it because I do know that Equifax.

• 22:37Speaker 00

  That's the real Frank in the tank right there.

• 22:39Speaker 03

  Yeah, you live on the wild side, baby. Yeah, that's how we define it.

• 22:42Speaker 00

  That's it.

• 22:43Speaker 03

  You live in wild, but they did have a settlement. There's been stuff being passed going all the way back to January of 2020. One recently, earlier this year, just came out. So basically, if you have losses because of the breach, then there's definitely things that you can get reimbursed for if there was actual losses. I don't know too many people or haven't heard of anybody I know that had actual losses, but even then, if you were impacted, you can file a claim for credit monitoring services. There's another thing that I believe allows you to do identity restoration. So that would be like if you

• 23:23Speaker 03

  did have a major breach that you can, there's a service you can get identity restoration. I'm not sure exactly what that even means, but if you do click on that link, you go to that site. It is a legitimate site as far as the Equifax breach and what is available. It has dates on it and stuff like that.

• 23:47Speaker 04

  Yeah, if you don't hear from MoneyWise, then then the site was.

• 23:50Speaker 03

  Yeah, all of a sudden it goes blank.

• 23:52Speaker 04

  Yeah.

• 23:53Speaker 03

  Yeah, but i- it is hard to know what is a legitimate legitimate site. Um, and what is not. Did you?

• 24:03Speaker 03

  As a matter of fact, yeah, we'll, we'll go to break um, right now. And then when we get back, I'll maybe touch on this again. Uh, and then I wanted to talk about the Juan Soto situation.

• 24:12Speaker 00

  Yeah, I wanted to hear what you had to had to say about that one. And how how that bounces up against uh, Ohtani's.

• 24:19Speaker 03

  Man, we got to talk about that because that blows my mind. So we'll take a quick break. When we get back, we will go over some Juan Soto stuff. Little bit more on the Equifax thing. And then there's a couple of other items that I wanted to talk about. Stick around.

• 24:31Speaker 00

  Need to get your financial fix on the go? If so, subscribe to the MoneyWise Podcast and catch up on all past shows whenever and wherever you want.

• 24:48Speaker 03

  Welcome back. This is the MoneyWise Show. Thanks for making what it is. Before the break, we were talking about Equifax and uh, there is a website you can go to because of the data breach. Uh, so yeah, if you go to Equifax Security 2017.com, it's Equifax's webpage. And it has to do with the uh, incident settlement reached. And it has that exact link that we were talking about earlier. Uh, the one that our listener shared with us. So appears to be the right uh, location. But Uh, one of the things, you know, always be checking your credit report, annual credit report. You can check each of the three major Uh, credit bureaus once a year each for free. So you don't have to pay for that.

• 25:31Speaker 03

  A lot of credit cards and stuff nowadays also at least have your credit score. Um, the credit report is not the number. It's actually just any activity. So we've always said that it's good to on a regular basis, check each of those bureaus. And uh, and just sneak a peek, make sure there's no unauthorized loans or lines of credit or anything like that pops up. But uh, but yeah, if you actually had um, losses because of that Equifax data breach, then then there is a settlement available to you and some different things that you can get. Um, so thanks again for popping that question in there. Um, what was the other thing that we were going to mention? Somebody or uh, regarding the?

• 26:12Speaker 04

  The rebalancing?

• 26:13Speaker 03

  Yeah, the rebalancing is says, thanks for taking my question. Was wondering if there was a certain time of the year or need to rebalance my portfolio every year or every couple of years. So maybe that was kind of an extension of our discussion on it. If you are doing calendar year and you know, investing like you mentioned Frank, that if we're, if you're doing based on the criteria of

• 26:33Speaker 04

  Yeah, the threshold.

• 26:34Speaker 03

  The threshold, then it doesn't matter what time of the year it is, you're going to make that change based on those percentage threshold, threshold changes. If you're doing a calendar year, the difference you would see like if you chose to do it in March versus September, you know, should I do it in March or September if I'm going to do it once a year? Over time, the difference between those two decisions will be pretty minimal. What is important is that you're choosing something and staying consistent with it. You're not trying to strategically do it when you think it's the best. It's, I'm going to do it this month and I'm going to do it consistently because that's what's going to not have your emotions be involved with when you're doing it.

• 27:15Speaker 03

  I will say that most portfolio managers, most people do it quarterly. So that's why you'll actually see some market activity around the end of the quarter. Some different phenomenons will take place on the short-term basis because a lot of portfolios will get rebalanced and there's short-term trades trying to take advantage of little things that are going to happen because portfolios are going to be rebalanced, right? They're trying to do like little short moves on some of those holdings. All that stuff is very temporary and, and minimal in nature. What we're thinking about for a lot of these discussions about rebalancing a portfolio is for the long haul, even if you're aggressive and 100% stock, you're still going to rebalance it based on the types of stocks that you're in.

• 27:58Speaker 03

  And then even if you're retired, now you might have more bond exposure, you might be a little bit more conservative. So now you're also going back and forth between stocks and bonds when you're rebalancing an allocation or a portfolio like that. So hopefully that sheds a little bit more light on that topic. And so, so yeah, now we can talk.

• 28:17Speaker 04

  Juan Soto.

• 28:17Speaker 03

  Talk Juan Soto.

• 28:19Speaker 00

  Somebody got paid.

• 28:21Speaker 03

  I, I was so blown away.

• 28:24Speaker 00

  Me too.

• 28:25Speaker 03

  At Ohtani's contract. But at the end of the day, you sit there and go, okay, but he is one of the best pitchers and best batters. And he's fast and can steal bases. And he's phenomenal in the outfield. Like you start putting all these puzzle pieces together and you're like, okay, like even though it's still insanity.

• 28:44Speaker 00

  Yeah, you're paying for multi-positioned player.

• 28:48Speaker 03

  Yeah, and you're getting it all in one and it definitely brings a lot of, you know, uh, you know, like viewers. I mean, because he's not from this country, you know, so like, I mean, like a whole new set of viewerships. I mean, I was so cool seeing all the different restaurants and places during the, the, the World Series that we're watching and tuning in. I mean, some of them too, I think it's like in the middle of the night that they're having to watch the game because of the time difference. But like, so it kind of started to, you know, to fall into like, okay, I can kind of see this, especially because they're deferring the payments. So they're getting all that money in their pocket right now and they don't technically have to pay. Uh, but anyways, uh, you know, if you haven't heard, he signed a 15-year, $765 million contract with the Mets.

• 29:34Speaker 03

  And you're thinking, well, maybe the Mets just went crazy and went for it. Well, they only were beat out by about $5 million from the Yankees that were willing to pay this. And I'm going, what in the world? He's, he's an outfielder that is not even that good of an outfielder. I don't know if you've seen somebody make a highlight. Have you seen the highlight?

• 29:52Speaker 00

  Yes.

• 29:53Speaker 03

  It's like, it's like eight, eight outfield, uh, fly balls that were coming to him. He like misjudged him and he's like running around all awful. And it's like, this is what they just paid $765 million for.

• 30:05Speaker 00

  I saw one that, uh, they did the Michael Jackson video with where he was dancing and dropping the damn ball. But I mean, looking at Ohtani, Ohtani had what 10-year for 700. And just in one, I mean, that was a massive shock last offseason when we saw that. And just one year goes by and a guy signs a 15 year, $765 million deal. I mean, that is insane.

• 30:30Speaker 03

  Yeah. Ohtani's obviously making more like per year on the contract, but still that, that a, that an organization is willing to put their neck on the line for 15 years.

• 30:39Speaker 00

  Well, I was looking at the details and in five years, he can opt out where the Mets can up it to 805.

• 30:48Speaker 03

  Why not?

• 30:49Speaker 00

  Something like, why not? Yeah. Right?

• 30:51Speaker 03

  Why not?

• 30:51Speaker 00

  So there's, that's why, cause they had talked to his agent on ESPN the other day was asking, I mean, was $5 million a big change just from the Yankees to the Mets? And he said, well, you have to look inside the contract because there's two different opt out. I believe it's the fifth year and the 10th year that it's going to average out to whatever the major contract is of that certain year.

• 31:14Speaker 03

  Yeah. No, no, no deferred money though. They're not doing anything like the Dodgers are doing. Uh, so that, that was one of the interesting things is finding out that, and I don't even know the specifics because the Dodgers, everybody's like, oh, they bought the world series. Well, technically they're, they're not even the top salary, you know, or, or salary bankroll.

• 31:36Speaker 00

  Well, because they don't have to count the Ohtani one.

• 31:38Speaker 03

  Maybe that's what I don't know. Maybe that's why, because you know, it's deferred. So technically they're like third or fourth, but down the road, they're going to be making payments. But you know, when you look at jersey sales and new viewership and all this different stuff, uh, you know, what is it now? 75 bucks for a Dodger dog or?

• 31:55Speaker 00

  At least.

• 31:56Speaker 03

  A hundred bucks for a beer?

• 31:58Speaker 00

  I can't even afford to get to the games these days.

• 32:01Speaker 03

  They, they did. They packed that place out. Everybody was so excited. Hopefully it will continue, but, um, but yeah, just, just wild. I just really couldn't imagine how they can justify that much money for a, a position player that only, yeah. Only play like he doesn't, he can't steal bases. He's not a speed demon, you know? I'm not taking away from the guy. He's a great athlete, but at the same time, it's just like, it makes the Dodgers look like geniuses.

• 32:27Speaker 00

  Well, these like NFL players were coming out and being like, damn dude, I should have stayed in baseball.

• 32:33Speaker 03

  How many, did you see all the social media? Everybody's like, be right back, taking my kid out back to, you know, batting practice. Crazy, man.

• 32:40Speaker 00

  It is insane.

• 32:41Speaker 03

  Yeah, so anyways, but one of the things that I, uh, that led in, that we were talking about this, Frank and I were talking about this is because it definitely shows inflation because one of the things I saw is, do you know, I think it was, I think Robert Kraft's the owner of the, the Patriots?

• 32:55Speaker 00

  Patriots, yeah.

• 32:56Speaker 03

  Do you know what he paid for the Patriots?

• 32:59Speaker 00

  Probably less than that.

• 33:00Speaker 03

  I think it was only 125 or 130 million dollars.

• 33:03Speaker 00

  Yeah.

• 33:03Speaker 03

  Well, it is only because he got the entire team.

• 33:07Speaker 00

  Oh, yeah.

• 33:07Speaker 03

  And they're, they just made a contract for three quarters of a billion dollars. I mean, it's wild, you know, when you think about it that, that, you know, and this was probably years ago, Kraft, I think has owned them for a while, but.

• 33:19Speaker 00

  Yeah, he bought, he bought them in 94 for 172 million.

• 33:23Speaker 03

  172, yeah.

• 33:24Speaker 00

  And they're probably worth well over 3 billion now.

• 33:26Speaker 03

  I mean, it's just nuts. You, you know, for 130 million or 70 million, you said, uh, you could own the whole team, uh, years ago. And that, that kind of went into inflation. When you think about how crazy inflation is, he was able to pick up the whole entire Patriots organization for 170, where now they're paying one player on the baseball field, uh, that can't even steal bases, uh, 700 and some over 50. I am going to go back to that. Again, showing the genius that the Dodgers are. So go Dodgers. Uh, had to talk about that a little bit, just rub it in there a little bit. So, uh, maybe we'll do some back to back because I don't think there's been a back to back World Series winners in a long time.

• 34:07Speaker 00

  And now, and the Mets are in the National League with the Dodgers, right?

• 34:10Speaker 03

  Yeah.

• 34:10Speaker 00

  So it's not like they're going to play each other.

• 34:11Speaker 03

  Yeah, because we had to beat them, remember?

• 34:13Speaker 00

  Yeah, to get it.

• 34:14Speaker 03

  They were saying that, uh, no, that was, yeah, that was the Mets, right? We had to beat the Mets. Yeah.

• 34:20Speaker 00

  It was the Padres.

• 34:22Speaker 03

  No, I think it was.

• 34:22Speaker 00

  The Padres and then the Mets.

• 34:24Speaker 03

  Yes, then the Mets, but the guys actually said that they felt like if they could beat the, uh, the Mets, that they would win.

• 34:30Speaker 00

  Yeah, players were saying that it was harder to beat the Mets than it was actually to the Yankees.

• 34:34Speaker 03

  Yep. And they said they were just off a little bit. And then luckily with the Yankees, well, I mean, I think we handled, handled the Yankees pretty easily, unfortunately. And then even the fact that they unfolded in that last game just kind of gave it to us. So.

• 34:47Speaker 00

  They're like, just what's funny is, um, just recently two former NBA players, uh, just bought a percentage, a very, very small percentage of a football team. And it was like nine hundred and twenty something million just for like a five, ten percent

• 35:05Speaker 03

  Right.

• 35:06Speaker 00

  Stake of the Buffalo Bills.

• 35:07Speaker 03

  Yeah.

• 35:08Speaker 00

  And I mean, and we just talked about Kraft buying a whole team.

• 35:11Speaker 03

  Yeah.

• 35:11Speaker 00

  Which is a championship, you know, dynasty team in the nineties. It's just crazy. From a hundred and seventy-two to buy a whole hundred percent of a team to, uh, two basketball players putting in nine hundred and twenty-seven million just for a ten percent share. It's insane.

• 35:30Speaker 04

  I wonder what the, the value is of that team now.

• 35:32Speaker 00

  It's four and a half billion.

• 35:34Speaker 04

  Four and a half billion?

• 35:34Speaker 03

  Yeah. Patriots. Yeah, it is. I mean, that, again, it highlights inflation. It highlights, you know, the fact that, that dollars, you know, have lost value and have just gone nuts that, that, I mean, a hundred and twenty million dollars. I guarantee you, there were so many people that probably thought Robert Kraft was an idiot.

• 35:49Speaker 00

  Oh, yeah.

• 35:50Speaker 03

  A hundred and twenty-eight million. And then again, you look in the rearview mirror and you think about inflation. It's just crazy. And one of the reasons we were kind of talking about inflation is because my joke was that, uh, come up to some Christmas parties coming up here for twenty twenty-four, there's gonna be a hot item. If somebody makes deviled eggs, baby, those things are gonna be worth gold. Egg prices are surging. Thirty-eight percent increase since November of twenty twenty-three. Eggs are forty percent more expensive than this time last year. So if you go somewhere and there's deviled eggs on the table, you might even want to take a Ziploc, dude. Throw a couple in there, take them home.

• 36:26Speaker 00

  Don't waste them.

• 36:26Speaker 03

  Keep them for later.

• 36:27Speaker 04

  Exactly. We had to cut back on eggs. I can, I can bring in eggs, you know, do my whole meal prep and everything.

• 36:32Speaker 03

  Dang it.

• 36:33Speaker 04

  So wife is like, no.

• 36:34Speaker 03

  Yeah. So a lot of this has been driven by severe, uh, you know, bird flu or, uh, avian influenza. There's also been some, uh, strong seasonal demand during the holiday season, and I don't think it has to do with meal prepping, Frank. These are people that like cookies and cakes. Okay?

• 36:53Speaker 00

  What's the difference?

• 36:54Speaker 03

  Yeah.

• 36:54Speaker 04

  Yeah, that is, that is my meal.

• 36:56Speaker 03

  Yeah. Well, actually, I mean, the thing about a cake is meal prepping because you can cut it into twelve pieces.

• 37:01Speaker 04

  I didn't say it was healthy.

• 37:02Speaker 03

  Feed you for twelve days. Uh, but anyways, the average price for a dozen grade A eggs has risen to three sixty-five. And it was only at two fourteen a year earlier. I remember pushing around shopping carts over here at the Albertson's right here by the Money Wise Studio. That was part of my, that was one of my jobs coming out of high school and going through school, going through college. And I would buy eighteen eggs for ninety nine cents.

• 37:30Speaker 04

  Oh, my gosh.

• 37:30Speaker 03

  I've lived like a bachelor for a while. It was, and then they would have the whole chicken too. I mean, I'll just go ahead and totally gross you guys out. So imagine broke college student Chris Pelster, eighteen eggs for ninety nine cents. The whole chicken at the end of the day, the, the, the big old chicken that they sell. It goes on sale at the end of the day. So I was eating real, real basics. But you know what's funny? Those were actually some pretty good choices for food.

• 37:55Speaker 04

  Did you have it with Arizona tea?

• 37:57Speaker 03

  Yeah, Arizona tea. Yeah. Keep it simple, man. Keep it simple. I knew how to scramble eggs and I knew how to eat chicken that somebody else cooked for me. So.

• 38:06Speaker 00

  I'll go right back to Robert Kraft, you know, I ate a mac and cheese. And, you know, he's the Kraft mac and cheese guy. It was the, the cheap chicken at the end of the day at Albertson's. Me and Dustin was our next door neighbor. And his, his parents worked at the Albertson's. So we would go at night. His sisters worked at Blockbuster, so we'd get free rentals. It was like a five dollar date with my next door neighbor.

• 38:34Speaker 03

  Wow. So, so even with all that being said about the eggs and stuff, the crazy thing is, is we're not even back up to highs that we've seen before on egg prices. Which was actually early January twenty twenty three, when eggs hit four eighty two a dozen.

• 38:51Speaker 04

  That's right.

• 38:51Speaker 03

  For some of the same concerns and they kind of got wiped out through the holiday season, November and December. And so going into January twenty twenty three, it was actually four eighty two a dozen. So we're still a little bit below that. We're at three dollars and sixty five cents average across the country. But just kind of wild to think that we're, we're creeping back up to those levels. And so, you know, the fact that, that a team is willing to pay seven hundred and something million dollars for a. That can't steal bases. We're gonna have to pay $4.82 for a dozen eggs. Uh, so anyways, take that what you will. We're gonna take a quick break, come back to close out the show. Stick around.

• 39:31Speaker 00

  Are you curious to learn more about how you can be money wise? Check out the money wise website at money wise guys.com to get more info about what we do and how we can help you.

• 39:50Speaker 03

  No, I figured, I figured you'd play the trap version of Christmas music.

• 39:54Speaker 04

  I was waiting for Mariah Carey.

• 39:56Speaker 03

  My girls crack up that I really do like Christmas trap music. I'm not joking with you. Oh, it's awesome.

• 40:01Speaker 04

  No, you are joking.

• 40:02Speaker 03

  No, no, it's awesome.

• 40:03Speaker 04

  Really?

• 40:03Speaker 03

  It's Christmas favorites, like mixed up with trap music. Like it's, it's awesome.

• 40:09Speaker 04

  No, he's, Steven, he's, he's joking, right?

• 40:12Speaker 03

  You ain't even seen me light up a dance floor yet. You, you will soon see Frank, why I have earned the name Frank, the Tank. But, uh, but we did have a comment come in and said, oh, I remember those days in college, eating buttered bread and fake Kool-Aid, Flavor Aid. I Y K Y K. If you know, you know. Go Doyers. Yeah. Thanks for that comment. And, uh, we've all been in similar situations, probably all of us in our lives. So thanks for that. Did want to mention that we have coming up on Friday's show, Justin and La Troy are gonna be getting down to business with the new women's basketball coach over there at CSUB. Uh, Ari, uh, Weiderman? Weidman?

• 40:52Speaker 04

  Weidman.

• 40:52Speaker 03

  And, uh, from what I hear, it's gonna be a heck of a show and she's got a lot of vision for that program. So we're really excited about that. If we have time, real quick, Frank, can you say what the market cap is now of the magnificent seven?

• 41:05Speaker 04

  Yes. As of Wednesday, the magnificent seven has surpassed a valuation of 18 trillion dollars.

• 41:12Speaker 03

  So we were talking about inflation. We were talking about how expensive Juan Soto is. Well, the magnificent seven that we've talked about a lot on the show, the big seven stocks now total 18 trillion dollars in market cap combined. That is insanity, but it's the same reason why you need to be making money wise decisions and getting ready for your future. So thanks for making the show what it is. Most importantly, be smart, be safe, be money wise.

• 41:40Speaker 02

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