Pod Insights The Moneywise Guys 12/5/24 The 12 Tribes of Planning & the Bakersfield Symphony Spotlight About this episode The Moneywise Radio Show and Podcast Thursday, December 5th 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 Show Notes: The 12 Tribes of Financial Planning Guests: Holly Arnold, Executive Director for the Bakersfield Symphony Orchestra & Stilian Kirov, Conductor of the Bakersfield Symphony Orchestra website: www.bsonow.org/
Transcript 0:00 Speaker 00 From the padded radio room off Stockdale Highway, here is Money Wise. Call or text in at 661-396-1000.
0:09 Speaker 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?
0:30 Speaker 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.
0:40 Speaker 00 Now, let's start the Money Wise Show.
0:44 Speaker 03 Let's, let's start it. Is that it? That's it.
0:46 Speaker 00 That's it, baby. Yeah, but ESPN didn't do their SportsCenter at the end.
0:51 Speaker 03 Hmm, well, guess what? This is the Money Wise Radio Show. We are live, padded radio room off Stockdale Highway, sitting here looking at my mousepad, missing Mr. Gero Ellis and thinking about him today. I'm just ready for a great show. I'm joined here with? Dustin Weaver. Mr. Weaver, so we don't get to do the show together a whole lot. Been busy, just like everybody else, running around like chickens with our head cut off and, and trying to enjoy a little bit of the holidays, a little bit of family time. That's right. Maybe even get out of the town for a little bit. Some people go to beautiful places. I go out into the middle of nowhere, dry camp. That's beautiful. Ride motorcycles. Yeah, I sent pictures of you guys. It's gorgeous out there. It's great.
1:36 Speaker 03 It's just a tough environment.
1:39 Speaker 03 So, we have a great show today. We are going to be joined. That tough silence at the end. Yeah, yeah. You can tell it's been a long week. It is, it's going to be a great show, though. We do have some wonderful friends of the show coming in. Bakersfield Symphony Orchestra. We're going to have the Executive Director, Holly Arnold, and the conductor himself, Mr. Stilian Kirov. Very excited. Am I announcing that right? Kirov?
2:05 Speaker 00 Still in Kirov, yes.
2:06 Speaker 03 Kirov. Is it Rove? Is it like a, you know, come on, I don't want to mess it up.
2:11 Speaker 04 Why don't we ask him?
2:12 Speaker 03 He was, he was great last time he was on. And so they have a, they have a show coming up. We're going to talk a little bit about that. And actually, if we have time, we have a couple of wonderful questions that came in. So thank you to the listeners. You too can send in the question. Join the conversation. We always try to throw this out there, 661-396-1000. You can send a text message if you don't want to be live on air, which hasn't been a whole lot of live callers coming in lately. So I think a lot of people are getting used to the whole text message thing. Um, and a lot of our listeners are streaming the podcast anyway, so you can't send a live call to a recorded podcast. But, um, but yeah, so, uh, we have a couple of questions that came in and we're going to go over those.
2:53 Speaker 03 And, uh, then we're going to talk a little bit, if we have time, about some of the interesting economical realities of a, of an orchestra. Um, and why a lot of orchestras, um, have some difficult hurdles to, to get over and why not all communities have a local orchestra.
3:12 Speaker 04 Yeah, that'd be good to hear. What's unique about that?
3:15 Speaker 03 So we'll talk about that. I mean, I'm sure they can definitely speak to it because they're living it. Um, and we've talked about a little bit, but I, I have some, some interesting, um, topics that we can go over, maybe even before they get in here. And then they can enlighten us even more because they are the ones, like I said, walking through it and creating wonderful memories and environments and music. Uh, here in our community. So we appreciate what they do. Even if you're not into it, you should, uh, want an orchestra to thrive in your community because of uh, some of the wonderful things that it does and the musicians that it gives an opportunity to, um, perform in their own home community.
3:49 Speaker 04 That's great. So that's coming up here in a little bit. How did the markets do today?
3:53 Speaker 03 The markets.
3:55 Speaker 03 We're negative.
3:57 Speaker 04 So the S and P was down, what around 11 points?
4:00 Speaker 03 Yeah, 11 points.
4:01 Speaker 04 1.9%.
4:02 Speaker 03 Still up over 6,000, all the way up at 6,075. NASDAQ pulled back just a little bit, about 35 points, 19,700.
4:11 Speaker 04 And the dumb down.
4:12 Speaker 03 The dummy Dow is 44,765. That's a 248 pullback there. That's about a half a percent. So not huge moves either way. And, and so, so yeah, there's not necessarily, I mean, do you think there's any reasonings or things that came out today that were unique that you saw?
4:32 Speaker 04 No, one of the other things I look at on a regular basis is the VIX, the volatility index, how volatile are things? And really that stayed pretty stagnant here the last few days, you know?
4:43 Speaker 03 Yeah.
4:43 Speaker 04 Up and down a little bit like the normal, normal market ebb and flow.
4:46 Speaker 03 Yeah. One of the interesting, you know, obviously right now, a lot of people are, you know, the, the crypto discussion is buzzing. What's unique about today is Trump, his treasury pick is Israel Hezbollah. It, I'm sorry, his treasury pick was affected gold prices. So gold prices went down about 3% because of, I guess, you know, maybe the, the treasury pick that he talked about or picked was.
5:19 Speaker 04 For his cabinet?
5:20 Speaker 03 Yeah.
5:21 Speaker 04 Yeah, I didn't see that.
5:22 Speaker 03 Yeah. So gold plunged about 3% today. Where normally we've been seeing cryptocurrency and, and some of the commodities kind of moving in tandem or kind of together. Where you still saw cryptocurrency climbing, you saw gold plunge, which actually I didn't even 100% look at.
5:41 Speaker 03 Cryptocurrency, it's one of those things we've talked about a lot. So it's something that we couldn't even talk about that long ago with our clients because it was not any kind of registered investment options out there. It was off the markets or, you know, out of regulation. Now you can invest in the price of cryptocurrency by ETFs and some different ways that you can participate in the ups and downs of the prices of cryptocurrency that that created a lot of buzz, which has pushed the mark, you know, the the value of cryptocurrency up over a hundred thousand dollars. When I say cryptocurrency, no, it's Bitcoin. Bitcoin is the the most commonly, you know, referred to and discussed. There's thousands of cryptocurrencies.
6:19 Speaker 03 Bitcoin being the most probably discussed and talked about one that's been around the longest. So it it's another one of those things where we always just throw a little caution in the wind in the sense that
6:34 Speaker 03 it's an interesting dynamic because in reality, it's only worth as much as what other people are willing to say it's worth. You know, even Warren Buffett would say it's it's a it's an investment that follows. Is it the stupider man theory or stupider?
6:50 Speaker 04 Yeah, greater fools.
6:50 Speaker 03 Greater fool theory. Which basically means like it's a great investment as long as you buy it and you find a bigger fool to buy it from you. And I know that there's a lot of people that would almost offend because there's definitely a chorus of of proponents of cryptocurrency.
7:07 Speaker 04 There certainly is, and it's hard to ignore. I mean, you look at the five year return up 1,200%.
7:11 Speaker 03 Yeah.
7:11 Speaker 04 Well, it's doing something right now.
7:13 Speaker 03 Yes.
7:13 Speaker 04 What I think what I've heard Buffett and some of the others say is what does it produce?
7:18 Speaker 03 Correct.
7:18 Speaker 04 Right? Because a lot of times when you're buying a stock, what you're buying, it's earnings of those companies, right?
7:23 Speaker 03 It's one of those. It's one of those things like like anything because I would even say, well, like, not that it's done the same, but luxury purses. Luxury purses have skyrocketed in value. And when everybody's doing good, those luxury purses look, they're hard to come by and people are willing to pay double of what retail is and but then when times are tough.
7:45 Speaker 04 Not so much.
7:45 Speaker 03 Not so much. I'll sell you my $3,000 purse for 100 bucks because I need the 100 bucks. And so cryptocurrency follows some of those things. Bitcoin follows some of that things where it's it's just, there's nothing behind it. People will say, well, the fiat dollars, you know, got nothing behind it either. And I'm like, no, it has. One of the most successful governments and taxing authorities in the history of mankind. So that's not nothing. You may not love the inflationary reality and the printing of money. And I understand all those and I share those same concerns. It's one of the reasons we exist as a firm to try to help people's money grow and last and at least keep pace with inflation over time if we can.
8:27 Speaker 03 But, but to completely throw all that out and then to see, you know, to get too fixated on that cryptocurrency or Bitcoin is all that matters for the future, you start to get into scary territory. And that's where you start to see some investor behavior happen like fear of missing out, greed, right? You know, you're not fearful. If you have any fear, it's the fear of missing out. So what do you see? You see prices go through the roof, you see money pour in and all of a sudden, some of the people that pour that money in there need to pull that money back out to make payments and mortgage payments and this and that. And, uh, and if you're always anticipating, well, it's going to go up a thousand percent a year or whatever, it may not be the case. And so you just have to be cautious, be careful.
9:10 Speaker 03 It is a legitimate asset class. Now I guess you could say in the sense that you can invest in it. You can invest in it by actually getting the crypt or the, the coins themselves or the digital coins. And you can also do, um, you know, like I said, you can trade on the value of it using like ETFs and stuff. So just wanted to bring it up because it's a big buzz right now. It's hit a hundred thousand and, and so it's, it's being talked about a whole lot. Uh, but just some of the things to consider and think about when you do that. So, uh, we have a little bit of time. Uh, maybe we'll jump into one of the questions.
9:43 Speaker 00 You want me to start with the first one?
9:45 Speaker 04 Go for it.
9:46 Speaker 00 All right. It says, hello guys. I've listened to the show since the beginning of the year and wondered if you had time to share maybe the best steps to become a financial advisor. I've been really interested in becoming one, but just wasn't sure what college classes or test I would need to prepare for. Thank you. And it's really great to hear how much you guys help the community and your clients.
10:09 Speaker 03 Well, good news. Um, to be an advisor, you literally have to do nothing.
10:15 Speaker 04 Just have a pulse?
10:16 Speaker 03 You just have a pulse. You just put financial advisor after your name and you can start telling people what to do with their money. So.
10:23 Speaker 04 Insert sarcasm here.
10:25 Speaker 03 Yes, that's sarcasm and it's, uh, it's, it's difficult. It may be, it may be easier than some people do anticipate. Cause even like saying what college classes to take in reality, um, there's not like a college course to take. And then you're boom, you're a financial advisor, but some of the majors, you know, from college that would line up with wanting to be a financial advisor would be like in finance or economics or accounting or business administration, some of those related fields, a lot of your understanding and, and learning in those fields is going to help you better understand stocks and different companies and different sectors and economic realities, um, that are going to push the markets up and down.
11:06 Speaker 03 Um, you're going to learn a lot more about that kind of stuff. If you're in accounting, you may not know as much of the economic stuff, but you're going to know more about, you know, books, the books of companies, you're going to know more, maybe more about taxes and tax planning. So anyways, long story short, you don't necessarily have to have a bachelor's degree. Um, but, uh, but it helps obviously to get that education. Uh, what would you tell somebody kind of looking down that road and?
11:30 Speaker 04 You know, I'm going on year, what 15, 16, something like that. And I've seen a few different things over the years and there's a lot of different ways. You've got insurance companies that do financial, um, you know, financial services, we'll call it. Uh, talking about risk management when it comes to life insurance, disability, long-term care type insurances. And then you've got the wealth management and money management companies out there. We could probably all name 10 of them off the top of our head, right? That, um, bring people in on that side as well. And then folks like us that do comprehensive financial planning that are looking at both sides. We, you know, the insurance matters, the investments matter and a plan to put it all together.
12:12 Speaker 03 Yeah.
12:12 Speaker 04 And so, yeah, there's a lot of different ways to get in.
12:15 Speaker 03 Yeah, it's, it's almost, I almost put it in the same category of like what I talked to my daughters about a couple of them were interested in being nurses and nursing is a great career because you can do it anywhere in the country and. You can be a nurse and you can be a nurse a hundred different ways. Like you can work in different departments. You can do different things. You can do in-home health care. You can do hospital. You can do exciting stuff, emergency room. Same kind of a thing with being a financial advisor. There's all kinds of roles that you can play when you say financial advisor. But in our industry, there is a licensed financial advisor and different exams that you do have to take to actually be able to be a fiduciary, to be able to open up accounts and actively
12:55 Speaker 03 manage or make moves inside of a client's account and be doing fiduciary moves, which means in their best interests. And you know, you're rebalancing the portfolio, you're doing whatever. So there is a set of courses you have to take. You don't have to have a college degree to do those, I don't believe.
13:13 Speaker 04 I don't think so. Yeah. So like on the insurance side.
13:15 Speaker 03 Right.
13:16 Speaker 04 You know, there is different insurance licenses to get.
13:20 Speaker 03 Yeah.
13:21 Speaker 04 And then on the brokerage side, you know, securities license that a lot of them you do have to be sponsored for.
13:27 Speaker 03 Yep.
13:27 Speaker 04 Like a series seven, you may have heard about. That's one you have to get a sponsorship from a company. You can't just go out and take it. However, the series 65, which you and I both have, is an investment advisor representative license that you are able to pursue on your own without being sponsored. So a lot of moving parts, a lot of different ways to get in.
13:48 Speaker 03 Yeah. And it used to be different. You know, you said 15, 16 years. I've been doing, you know, licensed almost 20 now. And when I started, like the only way to really get, get hired on would be to like, go to work for like an Edward Jones or somewhere like that. And then they sponsor you, like you said, and then you can open up the window to take your test. Well, now, they do have an entry level exam that you don't have to technically be sponsored. I think you can go in on your own and plan it and pass it. And a lot of companies, if you work, start working at a financial planning firm or somewhere like that, they're probably going to want you to pass that to show the basics, the essentials. It's called the securities industry essentials exam. And it's basically just, you know, kind
14:28 Speaker 03 of some of the introductory level, an assessment of your candidate's knowledge, basic securities industry. Some of the history of it, the fundamentals, working in the industry, types of products, their risks. So it's a, it's kind of a basic exam that you can take. So that's again called the S I E exam. You can find out more information on FINRA's website about that. But sometimes when I say like a college degree is not needed, well, if you want to go down a path of like getting hired on with an Edward Jones, you probably have to have a college degree for them to give you the shot to then say, I'll go take my exam. And you have so long to pass those exams and they might have some sort of compensation package for so long and you end up jumping in there and getting after it.
15:14 Speaker 04 There is a prerequisite too, to become a certified financial planner. You do need a college degree as a prerequisite in addition to a few years of school and lots of classes after that.
15:24 Speaker 03 Which does the CFP give a waiver for years of service in the industry?
15:30 Speaker 04 No, so they may have at one time, but
15:32 Speaker 03 Not anymore?
15:33 Speaker 04 Currently, no, you do have to have that degree.
15:35 Speaker 03 Okay. Yeah, I think, I think years and years ago, to become a CFP, I think they would say like if you had five years of service or 10 years in the industry or something like that.
15:43 Speaker 04 Yeah, now it's college degree and three years of practical planning experience, plus all the other classes and hoops you gotta jump through.
15:51 Speaker 03 There you go. There you go. So, great question. Some of the other things I was gonna say though is, is this, you know, a lot of people have different ideas of what a financial advisor is. Some people think it's a stock picker. Some people thinks it's only investments. You know, like when you said comprehensive financial planning, what we do here is, is it, investments are definitely part of it. But we're trying to look at the holistic plan of a person's situation, being efficient with taxes, taking into considerations any unique situations in their lives. Also then, long-term, planning on what happens if this client passes away? What, what, how's the income going to be handled? Where do the funds go? Where do the accounts go? How can we do that in the most tax efficient way possible?
16:34 Speaker 03 So it is a lot more comprehensive than a lot of people think. Um, but you could maybe just want to do stock picking and there may be a role as a financial advisor somewhere. And that would be more so what you were doing more like portfolio management type stuff. And you're not necessarily working with the public as much. You're doing more behind the scenes stuff. So there's all kinds of things you can do in the industry. We obviously here at MoneyWise are now five or six advisors working face to face with with local clients, a lot of clients who were local with us here and have moved out of the state. We have clients in over 30 different states. So obviously with technology and stuff.
17:11 Speaker 04 You bring up a good point though, too, with there being other roles. Right? So yeah, there's five or six advisors here, but I mean, we have a support staff of that many or more.
17:20 Speaker 03 Right.
17:20 Speaker 04 Right? So it takes a whole team to serve people. So if you have a heart for wanting to help and and serve, you don't necessarily have to be a client facing person.
17:29 Speaker 03 Right.
17:29 Speaker 04 If that's not your jam.
17:30 Speaker 03 Yeah. But, uh, and that's another way when you say how to get in there. So there's definitely some majors or some college courses that could make sense. The other thing to think about is, um, you know, getting a job working in this office, even if you're just answering the phone in an office like MoneyWise. You're starting to be around it. You're starting to learn and now you're going to be in the right place if you wanted to continue to pursue your career. So you may not start off in the role you absolutely want, but if you get in the right location, you're going to be able to move up through the ranks and through education and experience and, uh, and can kind of pursue what you want to do. So.
18:03 Speaker 04 One last thing on that.
18:04 Speaker 03 Yeah.
18:05 Speaker 04 So, uh, the Financial Planning Association, and we can put a link to this on the, on the podcast on the website. But they have something they call the 12 Tribes of Financial Planning, came out a few years ago. And it's got a nice little chart and diagram and a list. I think they may have even done a podcast about a lot of different ways to get into the business. Um, as you mentioned, you know, as an advisor, but then all those other types of roles as well.
18:31 Speaker 03 So we're going to put that link on the podcast, Stevie. Yes, sir.
18:36 Speaker 04 Yeah, just put it in the chat room and I'll, I'll take care of it.
18:38 Speaker 03 I think you already did. So if whoever sent in that question, you can find that with our podcast and even do a little more digging if you'd like to, or anybody else who might want to look into that. The one thing I'll say is I talked about some of the majors that you would take at a college, but some of the key classes to take are different kinds of studying. Personal finance, obviously, that could be a class. Investments and portfolio management is a piece of the pie. Taxation is obviously another one. Estate planning is what I talked about earlier. If something happens to you, where does your money go and how to do that in the best way? Another one is behavioral finance, which is what we were talking about earlier with Bitcoin.
19:14 Speaker 04 Right.
19:15 Speaker 03 It's a, it's a big illustration right now of behavioral finances. And sometimes the bias, the biases we have as investors and get after, you know, like, oh, like there's no risk involved with it. And it's like, no, there, there could be huge risks. And for all we know, something happens and Bitcoin could go to zero. People say, no way. How do you know? Like, you don't know, because it is something that's really new. And some of those same people that are 100 miles an hour towards that then will like not want to invest in a stock company. I'm like, I don't understand that. Like this is a company that's got millions of millions of dollars of revenue and assets and history, historical data and, you know, processes and a board of directors that are trying to continue to focus on being a profitable company.
19:58 Speaker 03 And you're sketched out about investing in a company like that, but you'll put money into especially the meme coins. My goodness.
20:05 Speaker 04 Right. Oh, yeah. Well, there's, yeah, so many of them that have popped up.
20:09 Speaker 03 Yeah. So, uh, we need to take a break. Okay. Well, let's take a quick break. We'll talk a little bit more about this when we get back. We do have another comment that came in. And if we can, we'll start to touch on some of the economics to consider for, for an orchestra. So we're going to be joined by Bakersfield Symphony Orchestra here in just a second.
20:25 Speaker 00 Money Wise Wealth Management is the only locally owned, independent firm that uses a comprehensive wealth tax and estate approach, working closely with a highly trusted CPA and attorney. For information on how Money Wise can help you invest and plan for your future, call 661-847-1000. That's 661-847-1000.
20:54 Speaker 03 That's right. Welcome back to the Money Wise Show. I'm Chris Pelster, joined by
20:58 Speaker 04 Dustin Weaver.
20:59 Speaker 03 Dustin Weaver. And we have a great show, great guests coming in here in just a second from Bakersfield Symphony Orchestra. So stick around for that. We were just finishing up. Somebody was asking about steps to getting, you know, into the industry. I think you mentioned a couple licenses, a couple other license exams that you need to pass to be able to sell and help manage certain products as like a Series 6 or a Series 7 license, all administered by FINRA. So there's, you know, a lot of these different things. You know, you have to jump through a few of these hoops to get licensed up and get moving. So yeah, check out the link. We'll put that with the podcast information and you can look a little bit more deeply
21:41 Speaker 03 into some of that stuff. The other comment that came in or question that came in, Stevie?
21:47 Speaker 00 It says, what are the risks of using Robinhood compared to other apps? Have you used the app or other apps? I've heard it's for beginners. So are they better apps? That are better to use? I have heard you guys bring up other ones, but didn't catch the names. I'm hoping to understand a bit more. And that has actually been a heavy question in the last couple of weeks. People using Robinhood or other financial trading apps.
22:15 Speaker 04 I feel like that one comes up a lot because the, it's like a pretty small minimum, a thousand or $2,000 to get going.
22:22 Speaker 03 Yeah.
22:22 Speaker 04 But.
22:23 Speaker 03 Yeah. I mean, right off the bat, here's what I'll, my comment on Robinhood and anything like that that's coming out is, you know, you're able to buy fractional shares. You're able to set up like maybe a risk profile and just dump money in there. And it's going to go into a portfolio that's going to be aggressive or whatever. I don't know if Robinhood allows you to do it, but where it rounds up. And so if you spend $20.12, it takes the 80.
22:51 Speaker 04 Oh, you're talking about Acorns.
22:52 Speaker 03 That's Acorns. So ones like that, I tell people, there's nothing wrong with that at all, but that, that is not. A solid, comprehensive financial plan for your future. It might be, you know, the excess on some of your things, or you want to throw 50 bucks or 50 bucks a week into that. And if there's six good months in the market, well, lo and behold, you get to sell. Of course, you have to remember also, if it's an individual account and you sell it and it hasn't been a year, you're going to pay long-term capital gains. So if you're a high earner, you're going to give a bunch of your gains. So there's just so many things about it. But, uh, you know, if it is helping somebody starting to get more interested in that and, and to go down that path and to educate themselves a little bit, it's good, but.
23:35 Speaker 04 So at the, just the very, if you said what, what's the 30 second version of what it is? It's a trading platform that you can put some dollars in and do your own trading, right? You're buying stocks, bonds, ETFs, options. And even sometimes I think some of that crypto, you can get in some of these apps too. But that's what it is. You're, it's a self-directed account that you're choosing your investments.
23:58 Speaker 03 Yeah.
23:59 Speaker 04 So you have to, at the very baseline, be comfortable doing that.
24:02 Speaker 03 Yeah, I think, I think they do, they do allow you to like, choose like a risk profile though. And there will be like a bucket, almost like an ETF, you know? So, so yeah, I mean, any, anything that you're doing to, you know, educate yourself, buy some different holdings and different stuff. So we may have to talk about the orchestra thing because we had another comic come in and I think I want to jump into it right before our break.
24:23 Speaker 00 We, we got a couple of minutes. Uh, the last one is, uh, what is the 10, five, three rule of investment? Is that something that is a normal guideline that most investors use? Thank you.
24:34 Speaker 03 Yeah. So the 10, five, three rule is an investing, uh, it's a simple guideline to helping you understand how different investments work over time. So it's basically saying stocks average roughly 10%. Bonds average roughly 5% and cash roughly 3% over the long term. And, and, uh, so it's just kind of a basics guideline of understanding the different investments and the different. You know, in this case, assumed rates of return on these different things. The thing I will tell you is that there are some stocks that average much more than 10% per year for a certain period of time. But overall, I think overarching guidelines, it's not a bad rule.
25:17 Speaker 03 It's not a bad understanding of what they do over historical data. A lot of times people use the S and P 500 to talk about the stock market, which is the 500 largest companies that are put together in an index. So it's not a mutual fund or an investment strategy. Now you can buy an ETF that holds the same composition. But the S and P 500 historically has averaged about 10% per year, even though it has swings some years of 10, 20, 30% up and down. But it's averaged around 10%. Bonds, 5% and then they say cash, 3%. Cash is a little bit high, I think, from what we've seen over the last 10, 15 years.
25:58 Speaker 03 I've always kind of thought it was more like around the 2, 2.5% range at most for cash. But yeah, it's a, it's a good rule of thumb to kind of understand what expectations should be. And what we always talk about here at MoneyWise sometimes is risk adjusted return. So sometimes people want to have the cash risk level, but they want to get the stock number.
26:18 Speaker 04 Right.
26:19 Speaker 03 And I wish I could do that, you know, and, and people sometimes think about being more active in their account. They could do a better job at that. That sometimes is even worse because we tend to do the opposite of what we're supposed to do. Our feelings don't line up with realities of what we should be doing.
26:34 Speaker 04 Yeah, that behavior management is such a big part of that.
26:37 Speaker 03 Yeah. So I think that's, those are good guidelines to remember. It also may help you get a better sense of, of, you know, realistic expectations for what your portfolio should be doing. If you have 80% of your account in bonds, you cannot be wanting to average 10% per year. If you want to average 10% per year, you have to have a real discussion with yourself or with your financial advisor and maybe readjust your portfolio overall and be willing to have a little bit more fluctuation in your account to try to get higher returns. The stock market, the bonds, the cash have been pretty. Pretty, you know, tried and true over time, but you have to remember that, you know, stocks,
27:18 Speaker 03 they can have a bigger move in one year. And that's obviously why most people want to avoid risk, which risk aversion, risk avoidance is a big behavior that we have as investors, something you have to remember. Most of the time, people are too conservative from where they should be. Right?
27:35 Speaker 04 Well, and you've said long-term a couple of times now. And when we think long-term, I mean, I don't want to speak for you, but I'm thinking 10 years or more. That's why a lot of times these rates of return that you hear quoted, like it's 10%, 11%, whatever it is, they're looking at periods of time over the long run. This is not a three-month or a six-month kind of expectation. I think sometimes, you know, we go into things that really have a long-term return and we expect that over a three-month or six-month kind of endeavor. It's like, there've been periods of time, I haven't looked at a statement for three, four, or five years. I just shred them and don't look at it because it's a long-term account that I know of the long run.
28:13 Speaker 03 Yeah, and I know some people think that that sounds foolish almost or whatever, but it's like, you have to understand, like, I understand the allocation. I can almost tell you what it did because I understand how it's invested and I know what its purpose is. And not that I'm ever happy if my account balance ever goes down, but you have a good understanding of your basis. You have a good understanding of how much money I put in there. Like, right now, the stock market for the last 14, 15 months has been going up like crazy. So if it goes down, but I have a good understanding of where we're at in the markets and why a little bit of a cool-off right now wouldn't be the end of the world, you know? And even for somebody who's in a different season of life, or maybe is taking income, well, that's why you may have a buckets of money approach. You may have like a conservative bucket. You still have a long-term bucket that's going to be
28:57 Speaker 03 there for you when you're 10 or 15 years down the road in retirement. So even though you're retired, you still have a 10 to 15-year window, Lord willing, you know, we, none of us know. And that's, that's one of the challenges. It's like balancing all that out. Like, we're not, we don't know, we're not guaranteed tomorrow, you know? And I know a lot of people feel that. So sometimes people are like, I can't afford to lose money at all. And it's like, no, we've all felt inflation this last year. You need to have some. Growth orientation in your account and have that stock work for you. It will actually, in the long run, be much, much better for you. Even though in that one bucket, you might see a little bit more fluctuation than like your bond or your cash portfolio. Good news is, though, cash right now and bonds right now, the yields on them are a little bit
29:42 Speaker 03 more attractive, but you don't want to then all of a sudden load up on all those because guess what's going to happen? Things are going to shift around and then the bonds are going to be the best performer or the bonds might even pull back a little bit if interest rates.
29:53 Speaker 04 That's why we get so excited about that bucket approach, right? We have these different buckets, some for income, some for growth and some for, hey, I need to protect this. I need some capital protection here. I don't want to have to go back to work and earn that money again.
30:06 Speaker 03 That's right. Well, good, Dill. We are going to be joined here in just a second with Bakersfield Symphony Orchestra, Holly Arnold and the conductor himself, Stilian Kirov. We're really excited. So, you ready for a break, Stephen? All right, let's take a break and we'll have him come in here. We'll be right back.
30:22 Speaker 00 Are you nearing retirement and currently working with a financial advisor? Are you not sure if you're invested appropriately? Call our offices at 661-847-1000 to sit down with a Money Wise financial advisor for a no obligation assessment of your investments.
30:49 Speaker 03 Did you have to interrupt it?
30:51 Speaker 00 Yeah.
30:51 Speaker 03 Yeah. Because I wasn't going to stop it. I was not going to stop it. It was too beautiful.
30:56 Speaker 04 I was going to say, I could play for the next 30 minutes if you'd like.
30:59 Speaker 03 Yeah. Well, if you didn't realize, that was some beautiful orchestra. So, can you name that tune?
31:05 Speaker 05 No, it was too short.
31:07 Speaker 03 No, too short.
31:08 Speaker 04 I know it's from the Legacy Show.
31:10 Speaker 03 Okay.
31:11 Speaker 04 But it was from the BSO, so it wasn't some other orchestra.
31:16 Speaker 03 Yeah.
31:17 Speaker 05 Oh.
31:18 Speaker 03 Yeah, there you go.
31:19 Speaker 05 It's beautiful. I have to figure out what it is later.
31:21 Speaker 04 It's the one on your homepage. How about that?
31:23 Speaker 06 Oh.
31:24 Speaker 05 That's funny.
31:26 Speaker 06 Laura's oboe piece, right?
31:27 Speaker 05 Oh, this is the oboe. Yes, this is Navarro. Yeah, I just didn't realize. We've done this a couple of years back with our principal oboes, Laura. It's a fabulous, fabulous piece of music, but yeah.
31:39 Speaker 03 Well, you're listening to the voices of those I've been talking about. We're so excited to have Holly Arnold, the executive director, and Stilian Kirov with Bakersfield Symphony Orchestra, the conductor.
31:50 Speaker 05 The conductor.
31:50 Speaker 03 That's why I figured, I figured you only needed like three seconds of a song and you already knew what it was, but...
31:55 Speaker 05 Yeah, sometimes, sometimes it's easy and sometimes, you know...
31:58 Speaker 03 I imagine if you're like playing it this, you know, if you guys are doing it this weekend, maybe, maybe it's a little easier.
32:03 Speaker 05 Yeah, I hopefully would know it. Yeah. Well, you know, we also, we also perform so much music. This, it's been a few years, but we were so excited to, to perform this piece.
32:13 Speaker 06 Well, I think we're the only orchestra on the west coast that's done that, right?
32:16 Speaker 05 Yes, that has performed it.
32:17 Speaker 03 Yeah. Yeah. Well, so I'm sitting here talking about, so tell us a little bit about the event coming up and, and then we can kind of jump into a few different things. And one of the things I was going to talk about today, we didn't get a chance to talk about it beforehand, but some of the, the economic challenges that, that orchestra has. And I was like, I can read an article about it, but you guys are the ones walking through it and mentioned that we're very, very thankful for you guys' hard work to keep a wonderful orchestra here in our community. And so I kind of want to talk about it because a lot of people might not think about it as far as some of the interesting challenges to having a, a, a well orchestrated orchestra.
32:54 Speaker 06 Absolutely. Well, let's start with a fun part, the concert.
32:56 Speaker 05 Absolutely. Yeah, we have a fabulous show tomorrow. I cannot be more excited about it. It's our Christmas holiday concert. It's a great, great concert that you can just come, relax, bring the family, bring the kids, and sit down and enjoy some Christmas tunes, holiday tunes, and just celebrate the beginning of the holiday season. We started...
33:18 Speaker 03 Also going to be having Bakersfield College?
33:21 Speaker 06 Yeah, let me tell you a little bit about, doors open at 5:30, concerts at 6:30. Get there early because there's tons of festivities in the lobby. It's very family oriented at this concert. It's great for date night. It's great for anybody, but there's lots going on. The Panama Buena Vista School's Strolling Strings. There's going to be about 80 students there performing in the lobby. It's precious. They perform Christmas songs and holiday carols and all kinds of things. And then there's a... Craft project for the younger kids and take home ornament to make keepsake. And there's a whole wall of desserts. There's gonna be over 2,000 pieces of complimentary desserts.
33:57 Speaker 04 Wait, how many?
33:58 Speaker 06 2,000 pieces.
33:59 Speaker 04 All right, I'm in.
34:00 Speaker 00 I'm in.
34:01 Speaker 06 So, I mean, it's just beautiful and it's really just an experience, not just walk in, sit down and listen to a concert. And of course, Stillian's concerts, you know, are always so much fun. There, there, nobody falls asleep at these symphony concerts.
34:14 Speaker 03 And I've had, I've heard so many great things and I, last time you came in, right before you guys did the concert and then you guys also had your annual.
34:20 Speaker 06 Oh, gala.
34:21 Speaker 03 Gala, gala right afterwards. And I think Debbie from our office might've went to it and so.
34:26 Speaker 05 Oh, that's wonderful.
34:26 Speaker 06 Yeah, I think she did. And to do two big things in one night was a lot, but it was so much fun.
34:31 Speaker 03 Good.
34:31 Speaker 06 So much fun.
34:32 Speaker 05 Yes.
34:33 Speaker 06 And, and the Bakersfield, Bakersfield College Combined Choirs are gonna be there. There's over a hundred choir members that are gonna be on stage with our over 60 musicians. So there's gonna be just a really beautiful amount of music and sound. It's so festive.
34:48 Speaker 04 Is it a combination? There's some songs with singing and some without?
34:52 Speaker 05 Yes, yes, it's, it's, there, there are some, some songs that are combined, the orchestra and the chorus. There are some that are only the orchestra and there are some that are only a cappella chorus. So it's everything from all worlds.
35:05 Speaker 03 Yeah.
35:06 Speaker 06 And you're gonna hear holiday favorites. I mean, it's just such a fun kickoff to the season.
35:10 Speaker 03 Yeah, that's really exciting. So, um, did you talk a little bit about what you guys are playing? Did I miss that?
35:16 Speaker 05 We are playing all different types of holiday music. So we have Christmas festival, we have sleigh rides. We have some arrangements of Christmas music. Um, so we have a Klatsmer Nutcracker, um, some, some really, really great tunes. We have a little bit of Messiah, Hallelujah, so.
35:35 Speaker 03 Yeah, that's awesome.
35:37 Speaker 05 Everything you can wish for.
35:38 Speaker 03 Yeah, yeah.
35:39 Speaker 04 It's great to see this, this big smile when he's describing it, right? You can tell there's a lot of passion behind it.
35:43 Speaker 03 Yeah, we're, we're so lucky to have you in our community and what you do. And like I said, um, I, I mean, obviously all, we've talked about recently, like nonprofit corporations and everyone's kind of had their challenges with COVID and coming out of that. And it changed a lot, but, uh, I kind of was, when you, when I knew you guys were coming in, I was like, I'm gonna look up some of the economics or challenges of an orchestra. And it's kind of really interesting because when you think about it. So many different sports and different things like they're able to kind of change and adapt and do things differently. And like even when you think about baseball, they introduced the pitch clock to try to shorten up the game.
36:23 Speaker 03 And because then they can be a little bit more creative with broadcasting and all these different things that some other sports can do. But when you talk about the orchestra, you can't change it.
36:34 Speaker 05 Well, you cannot, and you don't really want to because yes, you can. You can perform certain certain music with slightly less, slightly smaller ensembles, but then you lose from the magic. And so we have been working very, very hard to, you know, to navigate through this. And Holly has been an absolute marvelous partner when it comes to that. And she she has navigated and led the orchestra through the post pandemic.
37:03 Speaker 06 Challenge.
37:03 Speaker 05 Challenge and timeframe, because I think a lot, first of all, I think the world is not the same. And I think the pandemic, a part of all the economic challenges, many people realize, well, I actually prefer to stay home and, you know, go to work over Zoom. And and do all these things. And there's probably some beauty to it. But now that we are past that, what we want to say is, hey, there is huge value to live performances, to people gathering together, to coming back together in a way. And this has been our message and our goal to create these opportunities.
37:38 Speaker 06 Yeah, absolutely, because, you know, here in Kern County, we're impacted by all the regulatory pressures for our businesses, right? And it was the front page, top fold article about that, that it really affects nonprofits too, you know, when the oil and gas and ag and everybody feeling the pressures. And it's really true, like donations that might have been 50,000 from a corporation, maybe or five, you know, so what do we do with that? But, you know, one of the things that people don't realize is our concerts are truly the icing on the cake. Because it's what we do all year long is our education outreach. And each year we've touched over 7,000 Kern County students, every corner of the county with our outreach. And, you know, we're really helping.
38:18 Speaker 06 To close that opportunity gap, you know, we have kids, there's different programs, some come to our regular concerts. We have quartets that go out to the schools. We create learning materials for the teachers to share with them. There's a lot of different programs that we have and I work with some of the leaders in the education system. Because what they want to do, there's proven outcomes that students who play an instrument or are exposed to the arts have better outcomes. And you know, education is always a challenge here in our community, right? And so even working with the new chancellor at Bakersfield College or KCCD, the new president at CSUB. They are looking at a bigger piece of like, how do we touch these young people so that we make sure they matriculate to the college level?
39:01 Speaker 03 Yeah.
39:02 Speaker 06 And so they see the need in that too. And so I think that's really helped us to, you know, share, you know, you raise money on kids and puppies, right?
39:10 Speaker 03 Right.
39:10 Speaker 06 And now that it's post COVID and I can get out and talk about our education outreach message, it has helped us raise the funds.
39:16 Speaker 03 Yeah, you guys have definitely done a good job of bridging that gap. Cause maybe before you wouldn't think that having a symphony would be good for the kids in the community. But all those kids that are learning, you know, to play an instrument or whatever, to be able to look up to the orchestra. Even if you guys weren't reaching out to the schools and stuff, it's still good for a community to have something like that. And that beauty and that art in the community, to have those kids being able to look into it. And I don't know if you know any of the details of it, but I can also, I would say that because, you know, mental health has become such a conversation through all this. I imagine that the kids are doing better in school because they play a instrument, because they're probably mentally doing a little bit better. Cause they have an artistic outlet and something to really push themselves and drive themselves, learn how to learn, basically.
40:01 Speaker 06 Teach them responsibility and everything else and keeps them, wait, kids want to belong.
40:06 Speaker 03 Yeah.
40:06 Speaker 06 So if they can belong to, you know, whether it's band or orchestra or something, you know, in the arts related, they're going to want to belong somewhere. That's a good place.
40:14 Speaker 05 And music in general, it really opens your brain, especially at early age. If you are exposed to music, I think you're better at whatever you do.
40:23 Speaker 03 Yeah.
40:24 Speaker 00 I could speak with that. My, uh, my fifteen year old son got into piano about two years ago. Uh, loved it, moved on. Now he's in trumpet and now he's in the marching band. See, they just, uh, went state last, uh, last weekend, got 12th place and now he's wanting to play drums. So I'm looking forward to the show. Uh, I told him about the show last time you guys were on about the, uh, the video game and movie music next year. So he's already pumped about that one too.
40:51 Speaker 06 And anytime he wants to come to a rehearsal or something.
40:54 Speaker 00 Oh, really?
40:54 Speaker 05 Absolutely.
40:55 Speaker 06 Yeah, we love to inspire the kids and give them that extra opportunity.
40:59 Speaker 05 And have the chance to observe a little bit of the kitchen, how the concerts are put together. I think that's very valuable and, and, and interesting as well.
41:05 Speaker 06 Yeah, rehearsals are fun to go to.
41:07 Speaker 04 You know, you mentioned rehearsal a couple of times. How much rehearsing is done before an event like this?
41:11 Speaker 05 Well, for this one, we have one rehearsal tonight and that's it. So two and a half hours.
41:17 Speaker 06 But that's, that's very different than there are others.
41:20 Speaker 05 Yeah, and I'm, uh, this, this is a, you know, it's a program that a lot of, of a lot of us know and have played. I, I mean, the works on the program. In different places. Um, but for our regular concerts, usually we have three rehearsals and, and then a performance.
41:35 Speaker 00 Yeah.
41:36 Speaker 05 Yeah.
41:36 Speaker 00 But I'm sure there's everybody involved, uh, all together, there's rehearsals, but everybody's practicing.
41:42 Speaker 05 Oh, for sure.
41:43 Speaker 06 Yeah, they get their music at least a month ahead of time.
41:45 Speaker 00 Yeah.
41:45 Speaker 06 Yeah.
41:46 Speaker 00 Yeah, that's great. Um, can you, uh, think, is there anything else coming up after the new year? Or what do you guys, uh, have to look forward to for 2025?
41:53 Speaker 05 Well, we have a video game concert in the beginning of February.
41:57 Speaker 00 Steven is absolutely penciled in for that one.
42:00 Speaker 06 It'll be fun.
42:00 Speaker 05 Excellent. This will be very, very exciting.
42:03 Speaker 06 And then our March concert, talk about that one.
42:05 Speaker 05 Yeah, and we have a Beethoven nine concert, which will be absolutely fabulous. Another, uh, collaboration with all the choruses or here in Bakersfield. So this will be.
42:15 Speaker 06 That's CSUB, BC, Master Chorale. Yes.
42:19 Speaker 05 So, so we have that and then we have been collaborating with the Youth Symphony as well. Uh, we actually, in, in November, we had a performance with them and they played side by side with us. Um, so this was very exciting and they're coming back in May for our season. Finale, so it will be a huge orchestra on stage for Tchaikovsky's Fourth Symphony.
42:39 Speaker 03 That's great, that's great. Hey, we're gonna take a quick break. When we come back, we'll finish up this great conversation about the jewel of our community, the Bakersfield Symphony Orchestra. We'll be right back.
42:49 Speaker 00 Have you been putting off your finances? Seize the day. Call the Money Wise office at 661-847-1000, or email [email protected] for more information on how our financial advisors can help your financial situation.
43:13 Speaker 03 Yeah, if you've listened to the show for a while, you know that that is the beautiful voice of Mr. Gero Ellis. All the musical talent in this town, written, sung and produced by Mr. Gero Ellis right there. There you go. So, we're gonna finish up today's show. We have Holly Arnold, the Executive Director, and Stilian Kirov, the Conductor for the Bakersfield Symphony Orchestra. We left talking a little bit about some different things. One of the things that we were talking about was tickets, and we had a message come in that said, "Thank you for having the Bakersfield Orchestra on your program. We usually never miss a show after winning tickets on your show a few years ago."
43:52 Speaker 03 That's awesome. Sadly, we have to miss for our Christmas party tomorrow night, so we will miss this one. But anyone that hasn't gone before, don't miss it. So...
44:05 Speaker 05 That's very nice.
44:07 Speaker 03 Well, we're gonna have a little bit of a challenge. We do have a couple of tickets, four packs, to give away. So...
44:14 Speaker 00 You can text into the show if you'd like.
44:16 Speaker 03 Yep.
44:16 Speaker 00 And I'll work it out with Holly after the show.
44:19 Speaker 06 Perfect.
44:19 Speaker 03 Yeah, could we maybe put it at a will call?
44:21 Speaker 06 Sure.
44:22 Speaker 00 Just text in your first, last name and your email, and I will get in touch with you after the show.
44:28 Speaker 03 There you go. 661-396-1000. Text in your name and phone number, and we will try to connect you. So, get to texting. And this person obviously hasn't missed a show since, so that's really, really cool to go.
44:42 Speaker 00 Sounds great.
44:42 Speaker 03 One of the things you were mentioning about tickets... Tickets and one of the challenges is a lot of these third-party vendors and so that's kind of changed the game a little bit.
44:48 Speaker 06 Right, and I really try to get the message and thank you for allowing me to. We ticket in our office Monday through Thursday, 9 to 3, and that's when you're going to save the most. There's some, like a $5 fee we can't get around from access, but the next thing to do if we're not available is, and you can also purchase them online, you know, schedule them online from our website, bsonow.org, but after that I would go directly to the box office because if you go online and just see those third-party tickets, they're three times as much. And so we're really trying to let people know that we ticket, you're going to save the most with us.
45:21 Speaker 03 Yeah, and so tickets are...
45:23 Speaker 00 All of that will be in the, on the show notes. And that is my biggest pet peeve is people that resell these tickets and try to make money off people.
45:30 Speaker 06 I know. Our tickets start at like $40 and they're $160 from the third-party.
45:34 Speaker 04 Four times as much.
45:36 Speaker 03 Yeah, so that's, that's what the frustrating thing is and what I was mentioning earlier was somebody may check prices and only see those and think, "Man, they're charging a lot for the symphony," not realizing that it's a markup of three or four times.
45:48 Speaker 06 Well, and it's not just us because it's hurting concert ticket sales all across. We talked to them at, you know, the arena and they're struggling. You know, they don't sell the tickets either because of that. You know, ticket sales are down.
45:57 Speaker 03 Yeah. So there you go. If you don't have plans tomorrow night, you do now. It is, doors opening at 5:30. Lots of great festivities there at the Mechanics Arena, or the Theater, excuse me, not the arena, the theater side, right?
46:09 Speaker 06 Yes.
46:10 Speaker 03 Yes. Yep. And so lots of stuff to do. You can make yourself a Christmas ornament.
46:14 Speaker 00 Fantastic.
46:15 Speaker 03 Hear some great music. Again, thank you so much for the wonderful things you do in our community for the kids in music and just for the Bakersfield Symphony Orchestra alone. It's a wonderful thing to have in our community. So we appreciate you guys' hard work. And thank you, Money Wise listeners, for making Money Wise what it is for 20 years now. We really appreciate all the wonderful questions and comments and you guys taking advantage of wonderful free tickets and going and doing all these wonderful things in our community. So as always, be smart, be safe, and be money wise.
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