1/23/25 Getting Down to Business with the CAPK Foundation

The Moneywise Radio Show and Podcast Thursday, January 23rd 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 Guests: Catherine Anspach, CAPK Foundation-Director of Development & Savannah Oates, CAPK PR and Advocacy Manager website: www.capk.org/

• 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 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.

• 0:40Speaker 00

  Now, let's start the Money Wise Show.

• 0:43Speaker 03

  Welcome, welcome, welcome. How you doing, Steve Z?

• 0:48Speaker 00

  I'm blessed from the best.

• 0:51Speaker 04

  Oh, there he is.

• 0:52Speaker 03

  There he is.

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  How are you? How are you?

• 0:54Speaker 03

  Doing well, doing well.

• 0:55Speaker 00

  Justin, Dustin?

• 0:57Speaker 04

  Yeah, it's good to be here.

• 0:58Speaker 03

  The Austin Show.

• 0:59Speaker 04

  The Austin Show again.

• 1:00Speaker 03

  Welcome to the Money Wise Show. We're live from the Gero Ellis padded radio room off of Stockdale Highway. ESPN Radio, Bakersfield, 1230 a.m., 101.1 FM, and always streaming live at MoneyWiseGuys.com.

• 1:16Speaker 03

  You can call or text into the show 24 hours a day, 661-396-1000, 661-396-1000. As you heard today, I'm your host, Justin, with...

• 1:27Speaker 04

  Dustin Weaver.

• 1:28Speaker 03

  Dustin Weaver.

• 1:30Speaker 04

  Yes, sir.

• 1:30Speaker 03

  How you doing, Dustin?

• 1:31Speaker 04

  Excellent. Thanks for having me today.

• 1:33Speaker 03

  Well, we're going to have you every day.

• 1:35Speaker 04

  That's right.

• 1:35Speaker 03

  That's because you're an employee.

• 1:37Speaker 04

  You're part of the family.

• 1:38Speaker 03

  You're kind of part of the whole deal now.

• 1:40Speaker 04

  It's good to be here, is what I meant to say.

• 1:41Speaker 03

  Yeah, sure.

• 1:44Speaker 03

  If you'd like to listen to this show or any of our past programs, they're all recorded and in podcast form without the commercials, because nobody likes to listen to commercials anyways.

• 1:58Speaker 03

  Who listens to terrestrial radio anymore?

• 2:00Speaker 00

  I do.

• 2:01Speaker 03

  I know, I do too.

• 2:03Speaker 00

  But I'm old, as my son would say.

• 2:05Speaker 03

  Yeah.

• 2:06Speaker 00

  I'm like, forty, forty's not old.

• 2:09Speaker 03

  Yeah.

• 2:09Speaker 00

  But I think it is.

• 2:10Speaker 03

  It's pretty much old.

• 2:11Speaker 00

  I'm starting to feel old.

• 2:13Speaker 03

  Yeah, the knees are creaking.

• 2:14Speaker 04

  I was gonna say that, just after the forty first birthday, the knees started really creaking.

• 2:19Speaker 03

  Hmm. When you grunt getting up out of the chair, yeah, that's when you know you're old. Commercial free on all the podcast platforms, iTunes, Apple Podcasts, Spotify, wherever you get your podcasts. I, I'm talking to you out there that listens to those criminal podcasts.

• 2:37Speaker 00

  Steve's.

• 2:38Speaker 03

  All the, all the true crime podcasts that are out there. I know, I'm talking to you.

• 2:41Speaker 00

  Yeah. There's a, there's a local one, I was just talking to shared about a Bakersfield.

• 2:49Speaker 00

  He goes in the past of these, you know.

• 2:51Speaker 03

  Oh, the past crimes in Kern County and Bakersfield. I think I've heard that one, yeah.

• 2:55Speaker 00

  And I reached out to get him on the show, so we might have a local podcast professional on the show here in a couple of weeks.

• 3:01Speaker 03

  No, he's gonna show us up. He's gonna show how it's really done when you have a real podcaster.

• 3:05Speaker 00

  I'll be taking notes during that show.

• 3:09Speaker 03

  Well, we're gonna do what we do. We're gonna get into some numbers. We're gonna have a great show, actually. We have a, a guest. Are they coming at the?

• 3:16Speaker 00

  Two thirty.

• 3:17Speaker 03

  Two thirty, okay. The bottom half of the hour.

• 3:19Speaker 00

  Multiple guests.

• 3:20Speaker 03

  Multiple guests. We have Catherine Onspock and Savannah Oates from Cap K, the foundation. If you don't know what Cap K is, well, guess what? You're gonna have to stay tuned to find out all about the foundation and what Cap K does.

• 3:32Speaker 00

  They do a lot.

• 3:33Speaker 03

  They do an amazing job, fantastic job for our community. But we're gonna do what we do and we're gonna get to some numbers. Dustin, where are we at with the markets today?

• 3:45Speaker 04

  So S and P five hundred was up about one half of one percent, so closing in at six thousand one eighteen.

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  Record high today.

• 3:53Speaker 04

  Another one.

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  Another record high.

• 3:56Speaker 04

  Yep, Nasdaq up 0.2%, so it's at 20,000.

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  How about Netflix?

• 4:02Speaker 04

  The dumb Dow is up almost 1%.

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  Look at Dustin.

• 4:06Speaker 04

  He's rubbing off on me.

• 4:07Speaker 03

  Uh huh, uh huh.

• 4:09Speaker 04

  The dumb Dow up 0.92.

• 4:11Speaker 03

  I think what I find interesting in here we are, the first, you know, 22, 23 trading days of the year is, remember last year Dustin, that we were all talking about the magnificent seven?

• 4:29Speaker 04

  Oh yeah.

• 4:29Speaker 03

  Right?

• 4:30Speaker 04

  Right.

• 4:30Speaker 03

  Um, which was like the holy grail of investing. Meta, Alphabet, Microsoft, Nvidia, all of the high flyers, right? That was, that was the growth, that was the momentum as Gero, the momentum stocks as Gero would say.

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  Keep the mo.

• 4:47Speaker 03

  Keep the mo.

• 4:47Speaker 00

  Keep the mo. Keep the mo, keep the momentum.

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  So, what I find absolutely fascinating so far this year is that the value stocks have actually outperformed.

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  Those growth stocks?

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  Those growth stocks by about a half a percent. If you look at the Russell 1000 value index, it's up a little over 4% for the year, year to date. The growth index is up about 3.5% year to date. So, take that, growth momentum stocks. I think, so it's very interesting and it's telling and I think it also is a harbinger of where we are economically because if we are continuing to kind of stay at these high interest rates, over time, higher interest rates tend to,

• 5:44Speaker 03

  what they're, what they're intended to do is to slow down the economy to a certain degree. And those high-flying stocks, those high momentum stocks are, tend to be the first ones that get harmed when people start to rotate out of those growth stocks. Where do they rotate to? Value. And when they vote, rotate out of value, where do they go? High interest bonds.

• 6:13Speaker 03

  Right now, we have good, you can get, if you're a retiree, if you're a retiree right now, these are good times because you can, you can find bonds for four and a half or 5% long term.

• 6:24Speaker 04

  I can remember back a couple of years ago, they were throwing around that term Tina. Uh huh. You remember hearing that?

• 6:30Speaker 03

  Oh yeah, it was a.

• 6:30Speaker 04

  So there is no alternative.

• 6:32Speaker 03

  Yeah.

• 6:33Speaker 04

  Because at that time, it was, yeah, I'm going to stay in stocks because.

• 6:35Speaker 03

  There isn't anything.

• 6:36Speaker 04

  There's no alternative.

• 6:37Speaker 03

  I can't get yield anywhere else.

• 6:39Speaker 04

  Me one and a half, 2%.

• 6:41Speaker 03

  Yeah.

• 6:41Speaker 04

  Like.

• 6:42Speaker 03

  Inflation that was higher than that.

• 6:45Speaker 04

  Yep.

• 6:45Speaker 03

  So you couldn't even keep pace with inflation on one and a half or 2%.

• 6:49Speaker 04

  So for folks that haven't heard us talk about this before, what's the 32nd on value versus growth? What's kind of the difference between the two?

• 6:57Speaker 03

  So the biggest difference between the two is when looking at a growth stock, those momentum stocks, any of the profits that's generated from that business tends to be reinvested back into that business. Okay, so Nvidia or they're not paying dividends back to the shareholders. They're taking that money, those profits, and they're investing it back into the business to further their growth, to further their market share.

• 7:31Speaker 03

  To expand their market share, if you will. And so that growth is generated by that profit. And thereby, hey, their stock price grows because they are growing the business organically through profits and everything else. Whereas a value stock, think companies like General Motors, Ford, Verizon, AT&T. These are companies that have been around forever. Okay. They've already gone through the growth cycle. They've already like hit it big and they're large. There's not much in the way of fluctuation in there. It still fluctuates, there's still a stock price change on a day to day basis,

• 8:17Speaker 03

  but not nearly as volatile as some of these growth stocks. But usually, not all the time, but usually these value stocks will pay out a pretty nice dividend to their shareholders. That means the profits that are generated by these businesses, AT&T, Ford, like the ones I just mentioned, they pay a dividend. So if you're a shareholder of, let's say Ford, I know this for, you know, if you're, if you own one share of Ford, it's, I think it's somewhere around $10 a share or somewhere like that. For every share that you own, every quarter, Ford will send you 15 cents as a dividend.

• 8:58Speaker 04

  Which might not sound like a lot, but you own a lot of shares.

• 9:01Speaker 03

  If you own a lot of shares and you're a retiree, who maybe has a few hundred shares or a few thousand shares of Ford stock, that's not bad if you're going to get 15 cents per share every quarter as an income coming to you. Okay. Now, in other parlance, if you're, you know, using that in an IRA or something like that, and you're not actually receiving that as a check as income to you, you can take that income that's coming into the portfolio and then reinvest it. That can create the growth in your portfolio as well. So, the difference between growth, the momentum stocks and the value stocks is in most cases, how they treat their profits. Growth stocks, they're reinvesting

• 9:46Speaker 03

  that profit back into the business to grow the business, to really, you know, pedal to the metal. Right? Right? Value stocks, they're producing value for their investors through dividends and keeping the company running efficiently and providing profits and dividends.

• 10:04Speaker 04

  For the person that says, what should I buy? Right? These things go in cycles, right?

• 10:10Speaker 03

  They tend to go in cycles. Not, not always, but for what we're talking about here, if you look at the past, what, two and a half or three years, or even longer than that, the momentum stocks, those growth stocks.

• 10:26Speaker 03

  Forget about it. They were, they were growing it huge leaps and bounds and it was like what? I think what was, if we look back at what 2020, 2024? The, the magnificent seven.

• 10:43Speaker 03

  I'm, I'd have to look this up. I'm not, so don't quote me on it, but I believe the magnificent seven. Out of the, the, out of the S and P 500 accounted for 80% of the growth in the S and P that last year.

• 11:00Speaker 04

  Yeah. And 20, I want to say it was 2023.

• 11:03Speaker 03

  2023, 2024. They were very similar years.

• 11:06Speaker 04

  Yeah.

• 11:06Speaker 03

  That the seven stocks out of 500, seven stocks accounted for almost 80% of the growth. Now the S and P was up how much last year? 18%? 15, 18%? 80% of that was attributed to basically seven stocks.

• 11:26Speaker 04

  And it's hard to predict year to year.

• 11:28Speaker 03

  Which one's going to be the winner?

• 11:29Speaker 04

  So we do a lot of diversification here.

• 11:31Speaker 03

  Yeah.

• 11:32Speaker 04

  And another answer I've heard is buy both, you know, because they do go in, in cycles. And I've heard the term value stock also have another definition of potentially undervalued companies where their price to earnings, which is something a lot of analysts look at is, is reflecting, hey, there's opportunity for this price to to come up here.

• 11:57Speaker 03

  Yeah.

• 11:57Speaker 04

  You know, there's one of two things has to, has to happen with, you take someone like Nvidia, they're just talking through the roof.

• 12:04Speaker 03

  Well, yeah, what's their P E ratio? It's like a hundred or what? It's something ridiculous.

• 12:09Speaker 04

  People are projecting future earnings.

• 12:11Speaker 03

  Yeah.

• 12:11Speaker 04

  Is what it is.

• 12:12Speaker 03

  Right. And that's a good point though, when you're talking about P E ratios for value stocks that a lot of times you'll look at a sector and you might find a stock, like if the, if the whole sector, if their whole, you know, industry, let's say the average price to earnings ratio on that industry is an average of 10. Right? All of the companies in that industry, but you find an outlier that's in that industry that is a well-known company or well-known name. And you look at their fundamentals and they're, they're not hemorrhaging cash. They look like they're in pretty good shape, but their P E ratios at a three. Well.

• 12:52Speaker 03

  There's maybe some upside there. It's a you might, you might be like, hey, wait a minute. Why is this at a three? I think I might take a stab.

• 13:01Speaker 04

  I think Steven's over here saying nerd alert.

• 13:03Speaker 03

  Nerd alert, nerd alert.

• 13:04Speaker 04

  I hear it going off.

• 13:05Speaker 03

  Ding ding ding ding ding ding.

• 13:07Speaker 04

  I've, I've known Jess or Justin for years.

• 13:10Speaker 03

  Yeah, yeah, yeah. I geek out on this type of stuff. Hey, anyhow, but um, so it's interesting to me when we're looking at this and seeing that there's this attending, we're looking at a kind of a bit of a rotation from the momentum stocks towards those value stocks, at least in the first part of this year, at least the first 20 trading days. It seems like they're kind of in lockstep with each other, which is not what happened over the past two or three years. So it's, it's a little bit interesting to me. And as is, I'm asking myself, is this a harbinger for the rest of the year? Or is this kind of just a blip on the radar for the next maybe quarter or so? And it's just going to go back to where it was.

• 13:53Speaker 03

  And we're going to be off to the races again on growth or, you know, who knows?

• 13:57Speaker 04

  Well, hindsight's 2020. We can sit here in December and look back and tell you.

• 14:01Speaker 03

  Exactly. He's going to put a tab on this episode and be like, Justin, you were wrong.

• 14:08Speaker 03

  But anyhow, we're going to take a quick break. We'll be right back. Stick around.

• 14:12Speaker 00

  Need to get your financial fix on the go? If so, subscribe to the Money Wise Podcast.

• 14:29Speaker 03

  Really? Blind melon?

• 14:33Speaker 04

  That was scary.

• 14:34Speaker 00

  This is good stuff.

• 14:35Speaker 04

  He didn't scare me. Oh, I could. You gonna go some death metal next time?

• 14:42Speaker 04

  Hey, we got a question in.

• 14:44Speaker 03

  We got a few questions, as always. If you have any questions, please join the show. We love it when we get questions because it makes the show more fun, more fun for us, more fun for you as the listener because it's interactive.

• 14:58Speaker 04

  That's right. Which one are we going to go with first?

• 15:02Speaker 03

  I don't know.

• 15:03Speaker 04

  I like the last one.

• 15:05Speaker 03

  You know, hit me with it. Let's go.

• 15:07Speaker 04

  My wife and I are both 70 year olds, retired, live in Mississippi and have an $8,500 a month tax-free income with an annual COLA, which stands for cost of living adjustment. Do we have enough to live out our lives or is there something we are missing?

• 15:24Speaker 03

  I have some questions. I also have some jokes.

• 15:31Speaker 04

  Get those dad jokes ready.

• 15:32Speaker 03

  Start with the joke. The joke is if you're living in Mississippi on $8,500 a month, you're a king.

• 15:38Speaker 04

  Right? It's definitely one of the most affordable towns to retire in. I'd bite down, I mean states.

• 15:45Speaker 03

  States. Yeah. Like Mississippi on $8,500 a month tax-free. Yeah, I think you're going to be fine. Now, as a financial planner, I don't know what your normal expenses are. If it's $8,500 a month as your income, but your normal spending is 12,000 a month, we've got a problem.

• 16:01Speaker 04

  That's right.

• 16:03Speaker 03

  So there's a few more questions that I would have on that as a planner. I would also ask what other maybe assets do they have? What is their legacy plan? Do they have children and grandchildren that they would like to set something up for, right? Like what? There's more to this. I mean, what would you ask Dustin in this in this scenario? There's there's more more that needs to be asked.

• 16:29Speaker 04

  Absolutely. Yeah. What's the budget? There's money in, money out. You know, how much traveling are you doing right now?

• 16:34Speaker 03

  Cash flow.

• 16:35Speaker 04

  Yeah. Is there any future goals?

• 16:37Speaker 03

  Is there any debts that are out there that we don't know about that are not discussed here?

• 16:41Speaker 04

  Right. I can tell you, I've seen a lot of folks live on less.

• 16:44Speaker 03

  I've seen people live on a lot less.

• 16:46Speaker 04

  A lot less.

• 16:46Speaker 03

  A lot less.

• 16:47Speaker 04

  Right?

• 16:48Speaker 03

  I've seen people that can't make it on a lot more.

• 16:50Speaker 04

  That's right. It's case by case.

• 16:52Speaker 03

  Yeah, case by case basis.

• 16:54Speaker 04

  But it's a broad question. It's a nice, pretty good living.

• 16:58Speaker 03

  That's nearly $100,000 a year in Mississippi, tax-free.

• 17:04Speaker 04

  Right?

• 17:05Speaker 03

  I would say about 95% of people will probably be able to figure it out. I think you're going to be okay. Now, I would say.

• 17:14Speaker 03

  The other question I would have is that eighty five hundred dollars a month is that for the rest of your life? Is that a government pension? Or is that

• 17:22Speaker 04

  Well, they did.

• 17:22Speaker 03

  Only a time certain?

• 17:23Speaker 04

  So it, uh, there is adjustments.

• 17:26Speaker 03

  Is there a period certain kind of a thing where it's done after fifteen or twenty years?

• 17:32Speaker 04

  So the Motley Fool has a list of cheapest states to retire in twenty twenty five. Guess where Mississippi is ranked?

• 17:40Speaker 03

  I'm guessing lower than forty five.

• 17:43Speaker 04

  Number one.

• 17:44Speaker 03

  It's.

• 17:44Speaker 04

  It is the most affordable.

• 17:46Speaker 03

  Most affordable state.

• 17:48Speaker 04

  Yep.

• 17:49Speaker 03

  What is the number two?

• 17:51Speaker 04

  Number two is Oklahoma, followed by Kansas, then Alabama and West Virginia.

• 17:56Speaker 03

  None of those surprise me.

• 17:57Speaker 04

  Mm hmm.

• 17:59Speaker 00

  I was expecting Georgia somewhere close to that.

• 18:01Speaker 04

  Georgia's number six.

• 18:01Speaker 00

  There you go.

• 18:03Speaker 03

  Unless you're in Atlanta or one of the metro areas, yeah, Georgia would be probably up there.

• 18:09Speaker 04

  So California?

• 18:10Speaker 03

  Number forty eight or forty nine.

• 18:12Speaker 04

  Forty nine.

• 18:12Speaker 03

  Yeah.

• 18:14Speaker 04

  Followed by Texas, I mean Massachusetts.

• 18:17Speaker 00

  For eighty five hundred, you can get a van, go live down by the river.

• 18:21Speaker 03

  Yep.

• 18:21Speaker 00

  And that would be a nice chunk of change.

• 18:25Speaker 03

  I would say probably number fifty, if I were to guess. New Jersey.

• 18:30Speaker 04

  Massachusetts.

• 18:31Speaker 03

  Massachusetts.

• 18:31Speaker 04

  And then after that's the District of Columbia, D.C.

• 18:34Speaker 03

  Okay, I could see that.

• 18:35Speaker 04

  And then most expensive Hawaii.

• 18:37Speaker 03

  Oh, okay, yeah. Everything has to get shipped over to you on a barge, so.

• 18:43Speaker 04

  That costs more.

• 18:43Speaker 03

  That costs a little bit more. Gallon of milk is like twelve bucks. Yeah.

• 18:49Speaker 04

  Yeah, so being the most affordable state, eighty five hundred, we'd say is above average.

• 18:54Speaker 03

  Yeah, I think you're doing all right. I think you're gonna be fine. Um, I think we had another question here. It says, good afternoon. I know it's a bit of an odd question. But what would trigger a crypto tax audit? Good question. Odd question. I will give it that.

• 19:10Speaker 04

  I haven't heard that one.

• 19:11Speaker 03

  This is a good one. So Dustin, what's your, what's your first take on that?

• 19:17Speaker 04

  Well, I would start by pulling the word crypto out and say, what would trigger a tax audit in general?

• 19:22Speaker 03

  Precisely. That would be my answer.

• 19:25Speaker 04

  Yeah. And so the IRS gets information, right? From all the different sources on your income and assets. And they try and match those things up. If you have income of a hundred thousand, you should probably report an income of what?

• 19:37Speaker 03

  A hundred thousand.

• 19:38Speaker 04

  A hundred thousand. If you don't, that could trigger an audit.

• 19:41Speaker 03

  Triggers some things. So here's the thing that most people don't know is when you, when you file your taxes, this is the part that like, this is the part that boggles my mind is that technically, we really don't need to file our taxes. The IRS already knows all of the information they need.

• 20:02Speaker 04

  Right.

• 20:04Speaker 03

  All of it is in their database. They already have it.

• 20:08Speaker 03

  All they're asking us to do when we file is to verify the information they already have.

• 20:12Speaker 04

  That's right. And to see if you're honest about it.

• 20:14Speaker 03

  See if you're honest about it. If you're fibbing.

• 20:17Speaker 04

  Yep.

• 20:17Speaker 03

  Right?

• 20:18Speaker 04

  Now, a business owner, that starts to get a little different.

• 20:20Speaker 03

  Yeah, there's, you start getting into some really kind of weird, kind of crazy things, you know, whether what type of corporation you are and all that kind of stuff. But under normal circumstances, your crypto trades, you're going to have gains and losses. You're going to have capital gains, capital losses, that Coinbase or whatever, the wallet that you have wherever it's at, there is going to be a tax form that is uploaded to the IRS

• 20:45Speaker 03

  that they're going to know how much your gains and losses were on each of one of those trades and everything.

• 20:50Speaker 04

  So you should be reporting.

• 20:51Speaker 03

  So you probably should report it. So if, if you made, and last year was a great year for crypto, let's say that your trades made you $250,000 last year in capital gains.

• 21:05Speaker 03

  You file your taxes this year and you claim, "Oh, I only made like $12,000."

• 21:10Speaker 03

  I'm thinking you're going to trigger something.

• 21:12Speaker 04

  Right. Doesn't add up.

• 21:14Speaker 03

  Doesn't add up.

• 21:15Speaker 04

  So be honest.

• 21:16Speaker 03

  Be honest.

• 21:17Speaker 04

  Right. Tell them what you made.

• 21:18Speaker 03

  Yep.

• 21:19Speaker 04

  And that way, if you do get an audit.

• 21:22Speaker 03

  It's not going to hurt as much.

• 21:23Speaker 04

  That's right. Exactly.

• 21:26Speaker 03

  So, yeah. Rules of the road. Be honest.

• 21:31Speaker 04

  Do the right thing.

• 21:32Speaker 03

  Do the right thing. Don't lie to the IRS. Probably not going to work out in your favor.

• 21:36Speaker 00

  It's probably not going to work for you.

• 21:37Speaker 04

  I think there's a few people in federal jail that would tell you that.

• 21:41Speaker 03

  Yeah. They didn't get Al Capone for the murders. They got him for tax evasion. That's all I need to know.

• 21:49Speaker 04

  Well, and you see a lot of these fraud cases out there where,

• 21:54Speaker 04

  you know, they get them for mail fraud or wire fraud or.

• 21:57Speaker 03

  It's just white collar crimes that they get these guys on.

• 22:00Speaker 04

  Yep.

• 22:00Speaker 03

  Yeah. So, yeah, just be honest. Don't do stupid stuff and be honest.

• 22:06Speaker 03

  Hey, it's the bottom of the hour. We're going to go to a quick break, but when we come back, we have Catherine Onspak and Savannah Oates from Cap K Foundation. We are going to learn all that needs to be known about Cap K. A great organization in our community, does amazing work in our community, for our community. And we're going to get down to business with them when we come back.

• 22:31Speaker 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.

• 22:59Speaker 03

  Welcome back.

• 23:03Speaker 03

  Got a message in the break. What does COLA stand for? Sorry, I cut the end of the segment. COLA stands for soda?

• 23:10Speaker 04

  No.

• 23:11Speaker 03

  No.

• 23:12Speaker 04

  The other COLA.

• 23:13Speaker 03

  The other COLA.

• 23:13Speaker 04

  Cost of living adjustment.

• 23:15Speaker 03

  That's right. Basically, a short word for inflation.

• 23:19Speaker 04

  Yeah.

• 23:20Speaker 03

  Yeah.

• 23:21Speaker 04

  So it's an adjustment.

• 23:21Speaker 03

  It's an adjustment for.

• 23:23Speaker 04

  It's a cost more over time.

• 23:24Speaker 03

  Yep.

• 23:24Speaker 04

  Right?

• 23:25Speaker 03

  So if you see something that says a COLA, it just means every year, you're going to get a little bit more than you got last year.

• 23:30Speaker 04

  So if your pension was, let's say, 2,000 a month.

• 23:33Speaker 03

  It'll be 2,001.

• 23:35Speaker 04

  2,060 bucks.

• 23:37Speaker 03

  Yeah, something like that.

• 23:37Speaker 04

  The next year, right? So.

• 23:39Speaker 03

  That's what COLA adjustment stands for, is a cost of living adjustment. With that, we're going to go straight into our guests here. We have Catherine Onspah and Savannah Oates from CAPK, Community Action Partnership Foundation. Wonderful organization. Community Action Partnership changes people's lives and embodies a spirit of hope, improves communities, makes America a better place to live. We care, they care, we all care about the entire community, and we are dedicated to helping people help themselves and each other. That's the mission statement, right?

• 24:20Speaker 04

  Welcome, welcome.

• 24:21Speaker 03

  That's what it comes down to.

• 24:22Speaker 00

  I was going to say, well said, Justin.

• 24:24Speaker 03

  You know what? I can read. I read pretty well.

• 24:29Speaker 03

  You put a piece of paper in front of me. I can do it.

• 24:33Speaker 03

  Catherine, Savannah, thank you so much for joining us today. It's really great to have you on the show today, and I can't wait to be neighbors.

• 24:40Speaker 05

  Yes, we're going to be neighbors downtown.

• 24:42Speaker 03

  Right, right, right across the street?

• 24:44Speaker 00

  All right.

• 24:44Speaker 03

  Can't wait. So Catherine, talk to us a little bit now that we kind of. Broken down what, I mean, Cap K does-

• 24:54Speaker 05

  Cap K's big.

• 24:54Speaker 03

  It's huge, alright. It's, you can't, you can't pigeonhole Cap K into one specific thing-

• 25:01Speaker 05

  Yes.

• 25:01Speaker 03

  Of homelessness, or food insecurity, or education, or, it's all of the above.

• 25:09Speaker 05

  It really is all of that.

• 25:10Speaker 03

  And so much more.

• 25:10Speaker 05

  Yeah, it is. So it is sometimes hard with that mission statement, because it's like, what exactly does that mean? You know, it really means about reaching people at their point of need.

• 25:20Speaker 03

  Yeah.

• 25:21Speaker 05

  Right? And, and providing them with those resources that are accessible to them, and getting to the point of self-sustainability. That's, that's really it. So, whatever that program is gonna look like underneath our umbrella, that's going to do that for them. So, if it is a homeless client, or maybe, of course, one of our biggest areas is food insecurity. Whether it's education with our Head Start program, we have youth centers, we have family resource centers. We have, we had nineteen programs, we now have twenty programs-

• 25:58Speaker 03

  Oh my goodness.

• 25:58Speaker 05

  Under the umbrella of Cap K. So, together, the Cap K Foundation, the foundation is just an arm to Cap K, right? We're just like the philanthropic arm.

• 26:09Speaker 03

  Right.

• 26:09Speaker 05

  So, that's when you'll see, so call us Cap K, Community Action Partnership-

• 26:15Speaker 03

  Right.

• 26:15Speaker 05

  You know, we've heard different variations, but, yeah.

• 26:19Speaker 03

  So, the marrying of the foundation with the organization Cap K, obviously, they're two separate organizations, right?

• 26:27Speaker 05

  They are two separate 501(c)(3)'s-

• 26:29Speaker 03

  Correct.

• 26:29Speaker 05

  But I very much liken it to hospitals do the same thing in town-

• 26:33Speaker 03

  Yeah.

• 26:33Speaker 05

  And universities as well.

• 26:36Speaker 03

  Mm-hmm.

• 26:36Speaker 05

  You'll see both a university, and then you'll see a university foundation.

• 26:40Speaker 03

  Yeah.

• 26:40Speaker 05

  The reason for that is, and we are kinda built like that, is we're built under a lot of different grants and contracts that make our agency whole.

• 26:49Speaker 03

  Mm-hmm.

• 26:50Speaker 05

  And so, and then there's funding gaps within that, that the foundation uses unrestricted dollars, because grants and contracts and stuff have rigid guidelines.

• 27:01Speaker 03

  Usually strings attached, yeah.

• 27:03Speaker 05

  Strings attached, there's deliverables, and so, when a foundation is built usually off of an agency like that, it's because it gives them the leeway to fill in those funding gaps.

• 27:14Speaker 03

  For operational duties, yeah.

• 27:16Speaker 05

  A very simple way I like to explain it is we have a youth center. A lot of people know our Friendship House.

• 27:21Speaker 03

  Mm-hmm.

• 27:21Speaker 05

  That's off of Martin Luther King Boulevard or Cottonwood Road, whichever people like to call it. Um, Google Maps doesn't like to recognize.

• 27:29Speaker 03

  MLK.

• 27:30Speaker 05

  MLK, but um, we get, we have the building, right?

• 27:34Speaker 03

  Mm-hmm.

• 27:35Speaker 05

  We have the staff partly, but that doesn't buy new sports equipment every year. It doesn't allow those kids to enhance with maybe a great science program or a field trip to a museum. None of that's included, so that.

• 27:48Speaker 03

  And so the grants that come from the state or county that you guys are able to get, the strings are attached in such a way where it's only this program and only that is be able to be paid for.

• 27:59Speaker 05

  Correct.

• 28:00Speaker 03

  But nothing beyond that and no, no salaries can be paid out of that. And so you guys kind of fill in that great gap then for the unrestricted funds?

• 28:08Speaker 05

  Well, there are, there are certain staffing that is, and Savannah, you could probably speak more to this too. Um, but there, there are certain staffing guidelines, but I'll give you another example. Um, our Cap K Food Bank.

• 28:20Speaker 03

  Mm-hmm.

• 28:20Speaker 05

  We have a very large food bank.

• 28:21Speaker 03

  It's huge.

• 28:22Speaker 05

  We push out, Savannah, help me with how much we push out in pounds per month.

• 28:26Speaker 02

  Yeah, we do about two million pounds of food, so we're hitting about 23 million this year.

• 28:32Speaker 03

  Wow. Per month? Two million pounds a month?

• 28:35Speaker 05

  Yeah. That's incredible. Now, for the size of our food bank, which just expanded recently, two years ago, we went from 20,000 to 60,000 square feet at our food bank.

• 28:45Speaker 03

  Triple the size.

• 28:46Speaker 05

  Yeah, triple the size.

• 28:47Speaker 02

  Now you need a golf cart to drive around it, unless you're getting your steps.

• 28:51Speaker 05

  And we have a hundred, I, I believe we have like 176 partners, agency partners to help us push that food out in every area of Kern County.

• 29:01Speaker 03

  Right.

• 29:01Speaker 05

  All the way, you know, California City, Ridgecrest, everywhere.

• 29:04Speaker 03

  East Kern, West Kern, everywhere.

• 29:06Speaker 05

  Everywhere, so, but I can tell you, you know how much staff are at that food bank?

• 29:11Speaker 03

  Probably two.

• 29:11Speaker 05

  Well, there's 20.

• 29:13Speaker 03

  I was gonna go with a shocking number and you still shocked me.

• 29:16Speaker 05

  We need, how many we need per day?

• 29:19Speaker 03

  You probably need way more than that. Need 50.

• 29:21Speaker 05

  So what do we do? We're relying heavily on volunteer groups. Some come daily, some come weekly, some, you know, all sorts of things. So.

• 29:29Speaker 03

  I think we're set up to be monthly.

• 29:31Speaker 05

  Oh, good.

• 29:32Speaker 04

  For the next several months, actually.

• 29:34Speaker 05

  You're gonna love it. You're gonna love it. You're gonna love the team over there. So there's a lot of gaps like that. And CAP-K for a long time was, has been really efficient, but that's really where the foundation was born. Was for all these different ways to get out in the community and just connect with people that want to help us with our services because it's, listen, food insecurity, homelessness,

• 30:02Speaker 05

  all the number of areas that we touch upon, it's everybody's problem.

• 30:06Speaker 03

  And so Savannah, in, maybe you have the statistics on this for food insecurity in our community. What are the statistics for minors, for children in our community that are food insecure? Do you know those statistics?

• 30:22Speaker 02

  Yeah, so it's 25%. It's about one in every four.

• 30:26Speaker 03

  One in four children.

• 30:27Speaker 02

  Correct. One in every four. So if you're in a classroom of 30, a good, what, eight of them?

• 30:33Speaker 03

  Seven, eight of them?

• 30:33Speaker 02

  Seven, eight of them are food insecure once they leave that classroom every single day. So there's programs that are embedded, for example, like Catherine, if you think, yeah, we're 19, well, now 20 programs with taking on veteran services. Um, exciting stuff there, but the food bank is not just one program. There's four or five other programs that are built into the food bank that we don't even count. So for example, Backpack Buddies is something that is ran out of the food bank. And we basically stuff these kids' backpacks with food to go home with at dinnertime because they're getting their free lunches and their breakfast at school, but we don't know their situation at home, so we do it very discreetly. And these backpacks are stuffed on their way home or during holiday seasons.

• 31:15Speaker 02

  And the kids are able to, you know, not have that shame of going to a food line during that. Period or having the pressure put on their families or transportation needs. So there's other programs that are built into the larger scheme of what the food bank does, or even the senior food program. So anybody over the age of 60 needs, you know, a subsidy box. It's a 30 pound box of, you know, fresh, ready food to get to you. So like they can do rice, they can do beans, they have their canned vegetables and fruits. We'll deliver it to their door if they can't get transported. So there's a whole bunch of other programs that are embedded into these other, you know, large scale programs.

• 31:51Speaker 03

  It's whatever you can do to get the, the most use to the most people.

• 31:55Speaker 02

  Exactly. And that's where the foundation comes in. So they, they fill those gaps. Cause like Catherine mentioned, you can have a building, you can have lights, you can have staff, but you can't fill it with soccer balls or the notebooks to do the programs that we get grant funded for. So.

• 32:09Speaker 04

  And I love that partnerships in the name and you can't do it without the partnerships, right? Don't you get donations from local farms and things to provide the.

• 32:18Speaker 05

  The farmers are our big partners of us.

• 32:20Speaker 04

  Veggies and.

• 32:21Speaker 05

  We have a fresh, fresh rescue program as well, of course, with, with the grocery stores as well. We have so many partners that help us, you know, serve our mission.

• 32:32Speaker 04

  So for the folks that are listening that want to help, what does that look like? Where, where do they show up to offer their, their help? The volunteers, so to speak.

• 32:42Speaker 02

  So there's several different ways, you know, monetarily is always great. If, you know, every dollar makes a difference. A dollar is roughly about a pound of food for an individual and you're, you're thinking, oh, that's a pound of hamburger, you know, they can break that apart. It could be a protein, anything to capacity. We really stretch our dollars there. But also, like you mentioned volunteers, volunteers are the heartbeat of what we do every single day with Catherine's statistic of having, you know, 25 staff members and we're needing 50. We rely on those people to build the boxes every day. So if you have an hour out of your day, or if you want to take your kiddos to come and, you know, just build boxes and make it a community event, or a soccer team, or a key club, Kauanis, anything to that capacity, you just go to catk.org slash get involved. There's

• 33:25Speaker 02

  a little quick signup sheet there and then we get, we just work with you, whatever time works for you. If it's a week. Weekend or if it's an afternoon, if it's an hour, if it's three hours, we'll, we'll take anything we can get.

• 33:36Speaker 03

  Absolutely. Well, Catherine Savannah, we're going to take a quick break. I have a couple more questions when we get back from the other, other side of the break, really in, in essence, kind of asking the questions about the, the network of CAP-K and the, um, the integration with other services in our community. So if we can talk about what that when we come back.

• 33:57Speaker 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.

• 34:22Speaker 03

  Dustin's my cult of personality.

• 34:24Speaker 04

  Yeah.

• 34:27Speaker 04

  Little more flavor to this one, huh?

• 34:31Speaker 03

  Welcome back.

• 34:34Speaker 03

  Welcome back to the Money Wise Show. I'm your host, Justin here with Dustin, also here with Catherine and Savannah. Thank you for joining us. And so we, we have a kind of a short segment, but I wanted to get to, we had a quick question that popped in there, Dustin. What do we got?

• 34:50Speaker 04

  Does Community Action Partnership of Kern only serve Kern County or the whole state?

• 34:57Speaker 02

  Yeah. So I can answer that for you guys. Um, so it has Kern in it, you would assume it does. But for some of our programs, we are like the only state contractor. So for our migrant childcare assistance program, we serve all of California from border to border. Um, and we have a WIC office in Needles by Nevada.

• 35:14Speaker 03

  Arizona Nevada border.

• 35:15Speaker 02

  Correct. And then we do back office support through our 211 hotline for Kings to Larry, Madera, Stanislaus, uh, seven counties. So.

• 35:26Speaker 03

  Wow. Seven out of the 58.

• 35:27Speaker 02

  Correct. So we, we operate all everywhere as we can, but we are a national agency. So there's over a thousand community actions. Um, so if we don't do it in a certain area, there's another community action that does it as well.

• 35:40Speaker 03

  And then when we were kind of in the break, we were talking about, uh, the Kern Connected Network, which was the, you've mentioned it's the 211, right?

• 35:48Speaker 05

  We run that.

• 35:49Speaker 03

  And so CAP-K runs that and it connects individuals who are in need.

• 35:56Speaker 03

  With how many?

• 35:57Speaker 05

  I think it's over a thousand services.

• 35:59Speaker 02

  We're up to 3,000.

• 36:00Speaker 05

  3,000. Look, I'm not even current with that.

• 36:02Speaker 03

  3,000 different organizations for like different needs. So, you know, if somebody is experiencing homelessness, if Stevens kicked out of his house right now and he's on the street. Again? Again, he's no longer able to sleep on the couch. He's in the gutter and he calls 211.

• 36:21Speaker 03

  And let's say the M Street.

• 36:23Speaker 05

  Navigation center.

• 36:24Speaker 03

  You have the center there down M Street and it's, there's no more beds. It's full. He calls 211. It's run by Cap K. And you guys would be able to find the location that would be able to house him for that period of time and get him the services that he needs.

• 36:44Speaker 02

  Correct.

• 36:45Speaker 05

  Yes, and that delves even, even more into with homelessness into our coordinated entry system.

• 36:50Speaker 02

  So we operate that.

• 36:51Speaker 05

  Which is another program.

• 36:52Speaker 03

  Right.

• 36:53Speaker 05

  Falls under homeless services so that once that individual is in there, a number of services that tailor to that are all, that there's an access point for that individual.

• 37:03Speaker 03

  And so.

• 37:04Speaker 05

  So therefore Flood Ministries or anyone else has that information.

• 37:08Speaker 03

  Is there an intake kind of a situation where you're taking that person in and you're assessing that individual? Is it a drug issue? Is it a mental health issue? Is it a, a family issue? And, and like, and then getting the services necessary specific to that individual's needs?

• 37:25Speaker 05

  Yes, they're going to be assigned a case manager for sure.

• 37:27Speaker 03

  Absolutely.

• 37:28Speaker 05

  And then we partner with, um, um, health organizations like Kern Family Healthcare, right? That come in and bring in their, or Behavioral Health, that bring in their services. So it's wraparound services for these clients.

• 37:41Speaker 03

  Wow.

• 37:41Speaker 05

  Yeah, to get, to get what they need.

• 37:43Speaker 03

  It's amazing what you guys are doing in the community.

• 37:46Speaker 05

  And add to that Savannah, please.

• 37:46Speaker 02

  Yeah, quickly. So sometimes people call in with one basic need and then they realize, you know what? I'm, I'm needing a food box this week. I have been kicked out, but I'm going to need food. Or, you know, and I have a kid under five. So we kind of probe them more to let them know that there's more services and resources available to them than they anticipated even starting with.

• 38:05Speaker 03

  Right.

• 38:05Speaker 02

  You know, just getting them off of whatever situation they have in that moment.

• 38:08Speaker 03

  Right. And so it's, it's not just Cap K. It's also all of the other nonprofits, not just in Kern County, but statewide and nationwide.

• 38:17Speaker 03

  That provide services that maybe, I mean, you guys could provide a massive amount of services, but maybe there's a niche that you're not able to fill for that individual right now that another nonprofit fits better and you can connect them in that way.

• 38:31Speaker 02

  And it's the main operator for any kind of local emergency. So with, you know, the LA fires going on, once they read, that reach their capacity, we're part of the state network. So they'll activate us and we'll start taking calls for them.

• 38:43Speaker 03

  Wow, I didn't realize that.

• 38:44Speaker 02

  Oh yeah. So if anything were, you know, an emergency, an earthquake or a fire or chemical spills or anything to that capacity, we serve as that hotline for an emergency to, to find the shelters, to activate certain response teams and serve the, the state and whatever needs that they have. It's a huge network that we're part of.

• 39:04Speaker 04

  So how many staff does it take to, for the whole operation? I know you said 20 at least in the,

• 39:09Speaker 05

  Oh, for Tower Cap K.

• 39:11Speaker 02

  So we're over a thousand employees now. Pretty excited about that. So our two-on-one hotline that you know, is that huge brain and hub of the agency. There's, there's only about 30 of them. It's, it's an office that if somebody calls in from Madera County, for example, it'll trigger on their laptop, Madera call, and it changes the whole directory, directory for them so they can send it to the right person. But it's about 20 of them. It's growing, the needs growing and, and people are familiar with the number.

• 39:36Speaker 05

  I mean, we've grown so much, really. I mean, that's the thing. Every year we seem to be just growing. Cause the needs, the needs there, you know.

• 39:43Speaker 04

  You mentioned, I'm sorry, go ahead.

• 39:44Speaker 05

  Oh no, go ahead.

• 39:45Speaker 04

  I was gonna say you went from 19 to 20 resources. What is the newest resource?

• 39:48Speaker 02

  So exciting, exciting news. California Veterans Assistance Foundation, the CBAF, has been around since 94 with, you know, Deb Johnson is the lead out there. We're integrating them. So all their staff is coming over alongside with Deb and the, the whole move was just to build capacity for them. They have clients that we've never, you know, reached out to, veteran services into that capacity. They also serve youth homeless individuals. So we're going into the Covey cottages. So, you know, gonna assist with that. And just opening our networks and building on top of each other and, and really. Elevating all the great work they're already doing. So we're at 20 now. Who knows what we'll be next year.

• 40:31Speaker 03

  Yeah, elevating the services all around is going to be amazing. And so, you know, it is, it is a huge organization doing amazing work throughout our community. I can't wait to be a neighbor and right across the street. Really looking forward to knowing you guys and getting to know you better and being part of what makes this community really great. And just had no idea you guys were as big as you are and really looking forward to it. We are going to make sure that the website is on the podcast notes and it's all there. So for donations or anything like that, or more information on the foundation or for Cap K. Or if you're somebody listening right now that is in need and needs some kind of services,

• 41:13Speaker 03

  there's going to be a link on there for that as well. So we will be able to kind of help you in those kinds of ways too. So much love to you guys. Thank you so much for everything that you do.

• 41:22Speaker 05

  Thank you. I know it's a lot to squeeze into a short amount of time.

• 41:26Speaker 03

  I mean, we could probably have a four hour show just on the services that Cap K does. And it's so hard to smack it down into a 30 minute segment, right?

• 41:33Speaker 05

  Can I just say too, and for you guys of one of money wise, it's going to be coming. But for any of the community that wants to learn more, you know, give us a call, but we're happy to set up tours. You know, you really kind of have to see the work that we're doing. And we'd love to take people out to the food bank or to the homeless shelter or to one of our youth centers and really show them the work that we're doing.

• 41:50Speaker 03

  Absolutely.

• 41:50Speaker 05

  Happy to do that.

• 41:51Speaker 03

  Certainly. Thank you so much.

• 41:52Speaker 05

  Have them contact us.

• 41:53Speaker 03

  Really love it. Thank you so much for all that you do. Please to all of our listeners, thank you very much for the questions that popped in. Really love the, the interaction with our listeners. Thank you, Dustin. It's good to have you on the show. It's good to do the show. Good to do the show with you. As always, take a look at the podcast notes, get involved in any way that you can. As always, be smart, be safe, be money wise. We'll see you tomorrow. Have a great day.

• 42:22Speaker 06

  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.