9/3/26 Nvidia's Big AI Move, Money Basics & Reverb Gives Back

The Moneywise Radio Show and Podcast Thursday, September 3rd BE MONEYWISE. Moneywise Wealth Management I "The Moneywise Radio Show & Podcast" call: 661-847-1000 text in anytime: 661-396-1000 website: www. MoneywiseGuys.com https://www.moneywiseguys.com/ facebook: Moneywise_Wealth_Management https://www.facebook.com/moneywiseguys/ LinkedIn: Moneywise_Wealth_Management https://www.linkedin.com/company/moneywise-wealth-management-bakersfield/ Guests: Sam Stoothoff & Jake Tovar of Reverb Coffee website: https://reverb.coffee/ instagram: @reverbcoffee https://www.instagram.com/reverbcoffee/?hl=en facebook: Reverb_Coffee https://www.facebook.com/p/Reverb-Coffee-61581053071576/ The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Sam Stoothoff, Jake Tovar & Reverb Coffee are not affiliated with nor endorsed by LPL Financial or Moneywise Wealth Management

• 0:00Speaker 00

  Live from the basement inside the historic Woolworth Building in downtown Bakersfield. Call or text in at 661-396-1000.

• 0:29Speaker 01

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

• 0:37Speaker 00

  Now, let's start the MoneyWise Show.

• 0:41Speaker 02

  That's right. This is the MoneyWise Show. Welcome. We are live from the basement of the historic Woolworth Building in downtown Bakersfield. For the next hour, you are on News Talk 96.1 and 1230 AM, K E R N, streaming live always. Well, not always, but I guess every day at this time. MoneyWiseGuys.com is a good way to click in and listen live. And you also can listen anywhere you do podcasting. So I'm your host today, Chris Pelster with

• 1:11Speaker 03

  Dustin Weaver.

• 1:12Speaker 02

  Mr. Dustin Weaver. We don't, we don't get to be on the show all that much.

• 1:15Speaker 03

  Not often enough.

• 1:16Speaker 02

  Luckily, Mr. Steven is always over there with us in studio and making things happen. So excited about today's show. Uh, we have some good questions that came in that are gonna, uh, educate some folks and, and help out. And then we also have a couple of guests. They're not necessarily strangers. I've never been on them with the, on the radio show or whatever, but we have a couple of guests from the old coffee shop, shop upstairs. They have an event coming up, so they're gonna come in and share a little bit about that. But if you haven't had a reverb coffee, it's worth your time.

• 1:48Speaker 03

  I've had a couple this week.

• 1:49Speaker 02

  You guys, you guys amaze me.

• 1:52Speaker 03

  You guys, how many of it?

• 1:53Speaker 02

  You and Seth, he's trying to get a, you know, coffee named after himself. I mean, it's, it's getting a little bit ridiculous, but you know, we'll, we'll, uh, we'll just, I mean, it's, the, the coffee's good. I can't, can't complain. So. Um, you guys are what make the show great, though. You can call or text the show 24 hours a day. You can send in your message, 661-396-1000. Obviously, we love live calls. If you got a question or a comment on anything we're talking about. Um, and so we're, we're definitely gonna do what we do. Uh, we're gonna talk about the markets. We're gonna give a little bit of an update, kind of a crazy day on the markets. Definitely the, the tech world and AI and chip manufacturing world. Uh, kinda blew up today and, uh, and it's been positive there for the market. So we'll talk about that a little bit.

• 2:37Speaker 03

  Lots of green.

• 2:37Speaker 02

  But I want to talk about the local news right here, talking about the Woolworth Building.

• 2:44Speaker 03

  What is talking about the Woolworth Building? What did you see?

• 2:46Speaker 02

  We're gonna have a new neighbor. And it's a neighbor that's near and dear to my heart.

• 2:51Speaker 03

  Well, who is it?

• 2:52Speaker 02

  The Portrait of a Warrior Gallery is moving down the street from where they currently are, and they're gonna be Woolworth's, MoneyWise's new neighbor, right here on K Street and 19th.

• 3:05Speaker 03

  Is that where the furniture store was?

• 3:06Speaker 02

  The furniture store has closed down and, uh, and there was murmurings about this possibly happening. Uh, I know Portrait of a Warrior Gallery is very excited because uh, having a little bit more space, which opens up higher capacity, uh, they are gonna definitely be able to handle, um, uh, what's the thing you, you go on as a kid when you're in school? They take you in the bus?

• 3:29Speaker 03

  Like a field trip?

• 3:30Speaker 02

  Field trips. They could not even handle a field trip at the old location because, uh, only so many people could be in the building at a time because of capacity.

• 3:39Speaker 03

  So those that don't know, what is Portrait of a Warrior? How would you describe it?

• 3:43Speaker 02

  Yeah, it's, it's a way that we honor our fallen that have, uh, uh, passed away in service, in war. Uh, going back to 2001, I believe, since 9/11. Um, so obviously lots of, of local folks have unfortunately been lost in war prior to that, World War I, World War II, and Vietnam and, and other conflicts. Um, you know, we had locals, so we honor all of them, but, uh, but in the Portrait of a Warrior Gallery, it's the folks that have passed away in, uh, combat since 2001. So I believe there's 14 individuals. Um, don't quote me on that. It may be 18. I don't know why I can't remember exactly.

• 4:23Speaker 00

  Jeff Salters will be joining us next Thursday.

• 4:25Speaker 02

  Well, there you go. He's gonna talk all about it, but it's near and dear to my heart, cause, uh, we, we were affected by, um, veteran suicide in our, in our family. Uh, my brother-in-law, um, came back, uh, from his service and struggled to find his way and, and dealt with some of the things that, that veterans deal with and made that decision. And there's a part of Portrait of Warrior Gallery that also sheds light on that, trying to make a difference and, and get people help who need it.

• 4:51Speaker 03

  So there's the 14, but then there's a whole nother group that you're mentioning.

• 4:54Speaker 02

  There's, there's ones that have been impacted by, uh, by some of the, the, the wounds and the, the scars of war. Beyond that, there's also a Vietnam section. There's a uh, dog tag section that, that they have a display that, that shed lights on MIAs. Yeah. Yep, missing in action who haven't come home. Um, and then they even have like a thing set up to kind of mimic a, a bunker, or I guess a, a bunk that you would be in if you were actually over in Afghanistan. Um, and so it's just a cool way to shed light on some of our local heroes. And so I've, I've been involved with them and, and known about their, uh, what they're doing for, for veterans local. And so now they're gonna have twice as much space. There's a downstairs next door. They're gonna have more capacity, be able to handle,

• 5:38Speaker 02

  um, uh, field trips for students that can go in and learn a little bit about some of our local folks and, and shed light on those things. And hopefully, um,

• 5:47Speaker 03

  It's great. Spread the word.

• 5:48Speaker 02

  Yeah. And I think it's a great neighbor for us. I'm very excited about that. So very cool. Uh, Portrait of a Warrior Gallery is gonna be moving next door here. It's, it was the Mi Casa Furniture Store at 19th and K, and now it's gonna be right across the street. I think it's just gonna be, um, you know, again, we wanted to be part of downtown, fix, getting fixed up and, and, and, you know, uh, you know, be considerate of, unfortunately, everybody knows homelessness is a, is a situation. We want to try to be a positive movement in, in helping those folks, uh, get, get needed help in those different things and be part of, uh, the solution for this issue in our, in our community. And I, I think, uh, the ball is rolling. So kudos to, um, Sherid and Emily and some of the folks that kinda saw this vision

• 6:33Speaker 02

  back in the day. And thanks to our clients who are now driving some of them a little bit further, or, or for some of them it's shorter, but, uh, but into a different part of town. And, uh, you know, we, we really appreciate our clients.

• 6:44Speaker 03

  A lot of good things happening.

• 6:46Speaker 02

  Yeah, good stuff. So anyways, we were gonna jump in and just give a little bit of an update on the markets. Like I was mentioning, there was some movement in the uh, chip manufacturing world and the tech world. And who am I talking specifically about? Nvidia. If you guys have not heard about Nvidia, it is kinda the, the, the, the biggest, baddest, uh, chip manufacturer out there and kinda who everybody is looking at as far as the AI tech moves and what's going on in chip manufacturing and all this stuff.

• 7:16Speaker 03

  Yeah, the chips they make, uh, are a big part of what's driving a lot of these AI companies, right? And they have these boards, if you will, that have a number of chips on them that sell for, gosh, a hundred thousand dollars or more, I've seen.

• 7:29Speaker 02

  Yep. And so they came out and confirmed this morning that they have plans to purchase a little business for a little, little bit of money. I mean, they figured, why not pick up a company called Hugging Face?

• 7:41Speaker 03

  Hugging Face.

• 7:42Speaker 02

  You heard me, right? It's called Hugging Face. Uh, and they're willing to pay 13 billion dollars for Hugging Face. And so a lot of these companies that people don't know about, there's all these AI companies and people behind the scenes that, you know, everybody knows Nvidia, but there's all these other companies. Well, they are purchasing, uh, Hugging Face. Uh, my, uh, non-techy side of explaining what Hugging Face is, is um, they're an open weight AI platform.

• 8:11Speaker 03

  Just as I suspected.

• 8:12Speaker 02

  Yep, yep. Open weight AI platform. So everybody should know what that is, right? Everybody, we can move on now. Anyways, I did wanna explain it in my very simple terms.

• 8:22Speaker 03

  How would you say it?

• 8:23Speaker 02

  Weights are basically the models are trained parameters of these AI systems. And they're open, meaning you can see them. They share them to the public. Uh, and so it's not, it's not like they share everything, but they do share some of the parameters and weights of their, uh, training models. And so that's probably still not clear for everybody who, just like me, is not in that world.

• 8:51Speaker 03

  Clear as mud.

• 8:51Speaker 02

  Yep, clear as mud, but they

• 8:53Speaker 03

  One of the things that stood out, I was looking at the financials of this right now. So they, they paid 13 billion. One of the things these investment bankers talk about is what, what they call a multiple. You know, what multiple of the revenue, the earnings that a company's earning, can they get? And this company was making about 150 million annual recurring revenue, right? So to buy it for 13 billion, gosh, that's almost 100 times.

• 9:20Speaker 02

  And that may not sound a lot different, cause all we're doing there is the difference between an M and a B with million and billion, but 150 million revenue for most everybody's astronomical. But to then pay 13 billion, if you go do some research, do some, you know, Googling, uh, look up a video that explains the difference between a million and a billion, maybe that'll make a little bit of sense to folks out there on how much they paid for this. It's astronomical. And, and so that, this is what people are wondering about, like bubble and all these different words that people are a little bit concerned about, because that is a huge multiple to pay for a company. So anytime we talk about these companies, anytime we talk about Nvidia, it's never a, a recommendation to buy or sell or whatever, individual stocks and stuff.

• 10:05Speaker 02

  But we definitely want to talk about these things, because this is what the big talk on, uh, the trading, you know, the trading day is today. Um, with that being said, I'll throw out the numbers. Obviously, the big mover there is NASDAQ. We're not closed down for the day. There's about 45 minutes left in trading. NASDAQ is up about 1.55%. The Dow is up 1.14%, and the S and P 500 is up 1.13%. So obviously, green on the screen, um, seeing tech, you know, companies buying each other and making these investments and stuff. It, uh, the market likes it. The market's moving up.

• 10:41Speaker 02

  Um, a little bit perspective, we always like to kinda bring that out there. So the S and P 500 is at 7,007.53. Like I said, it's up 1.1% today. Year-to-date, up 13.25. Over the last one year, up 20%. So just some frame of reference as far as like the S and P 500, again, the 500 largest companies, what have they been doing for the last 12 months? They're up 20%. So, um, everybody right now would probably like freak out if I said the market was gonna crash 20%.

• 11:12Speaker 03

  Right.

• 11:12Speaker 02

  But yet it's up 20%.

• 11:14Speaker 03

  Yeah, and they they've been saying for a while that things look expensive, but every time you say it looks expensive. That's not a barometer of what's gonna actually happen.

• 11:24Speaker 02

  Yeah, yeah, so we hope to have a little bit of time to possibly talk about bubbles and and thinkings about bubbles. So we'll talk about that in a little bit.

• 11:35Speaker 03

  You mentioned tech a little bit. Some of the other tech companies that people have been talking about SpaceX is up about 8% today. Tesla around six and a half.

• 11:43Speaker 02

  Well, you know why Tesla is up six and a half, right? So today, tonight, they're unveiling the Tesla taxi. So they they quit making the, I believe, the Model S.

• 11:56Speaker 03

  I think the S and the X have been.

• 11:58Speaker 02

  The S and the X have been cut because they're having a lot more sales on the the smaller ones and the cheaper ones. But they're coming out or unveiling tonight the taxi, which from what I understand, it's going to be like a, it's not even going to have a steering wheel in it.

• 12:13Speaker 03

  Meaning it just drives you around.

• 12:14Speaker 02

  It just drives you around. There's no more driving in this. And so kind of a crazy world to think about. I mean, literally, folks, we are moving into the Jetsons reality when he used to get in his little spaceship and there's no, nothing in it. You just punch where you go and it goes. And, and you know, it's, it's both, it's kind of scary and kind of like so unknown and it's just so crazy. Like I said, I never thought I'd be saying a company called Hugging Face just got bought for $13 billion. It is a different world in a lot of ways than what, you know, traditional, it was oil and it was, you know, what, what are these big oil and energy companies doing? Obviously, very important, these companies, and they're not going anywhere,

• 12:58Speaker 02

  but not realizing how much AI and technology and chip manufacturers and the ability to be able to store data and memory. Like, that's the next frontier, right? And it's mind boggling because you're thinking, well, why is it so important? Well, because what I just mentioned, we're gonna have cars that can literally drive themselves around and and probably be better drivers than humans.

• 13:21Speaker 03

  Well, I know we've both been in a Tesla that has the full self-driving, and we've seen it firsthand how good it is.

• 13:28Speaker 02

  Yeah.

• 13:29Speaker 03

  Technology is just fantastic.

• 13:32Speaker 02

  It really is. And and I don't know about everybody else, but but at some point, you reach this point in your life where you're like so sick of driving. And if it was amazing and like you literally could just doze off and just get, pull up at wherever you're wanting to go. Some people, it still scares the death out of them. But but for some reason, it is looking more and more attractive. The maybe the more years I gain, huh? So, so anyways, but let's go ahead and jump into the questions that came in there. So we had one, I don't know exactly what they were talking about yesterday on the show, but it said, may have missed the chance to get my question in, but speaking of bonds, and was wondering if they are safe to invest in. I've only been trading for maybe two years and didn't know the difference.

• 14:16Speaker 02

  So I'm not sure specifically what they were talking about yesterday, but definitely want to, that's a great question. Okay, so when we talk about the stock market, we talk about different investment types. Okay, stocks are owning, bonds are loaning, basic, simple premise of it. Right, simplest terms. So stock, you're buying a little share and a little bit of a little tiny ownership in a company. And if that company goes up in value, you get to participate with the gain. If the company doesn't get ran right, or they have some major issues and it goes down in value.

• 14:48Speaker 03

  Participate in the loss.

• 14:50Speaker 02

  You get to participate in the loss. And so that's the difference of owning a share and owning a little piece of the stock. Bonds, when you ask if it's safe, they historically and kind of overall are definitely considered relatively safe investments, but it depends on what type of bond you're buying. There's different types of risk. Yeah, go ahead.

• 15:10Speaker 03

  Lots of different types of risk. So when we say a bond, it's, as you mentioned, it's a loan. But who is it a loan to is the question. So there are government bonds, and guess who you're loaning the money to? The government. You've heard of Treasury bills, Treasury notes, Treasury bonds. The difference there is just the timeframe. So, you know, a Treasury bill is like a bond, but you're loaning your money to the government for under two years. Bonds are typically 10 and longer.

• 15:37Speaker 02

  Yep. And so when you ask if it's safe, you know, we're talking about risk here, which is a good thing to begin to educate yourself on and understand. You're loaning your money to the government when we're talking about US Treasuries, like, like Dustin was just mentioning. You can also loan your money to Apple. They might have a bond, right? Apple might be a safer company to loan to. I think, I think they're doing okay and those kinds of things.

• 16:01Speaker 03

  So they call that a corporate bond because it's a corporation.

• 16:03Speaker 02

  Yep. And corporate bonds sometimes are affectionately referred to as junk bonds.

• 16:09Speaker 03

  If the credit quality of the company is low.

• 16:11Speaker 02

  Yeah. And so those actually trade a little bit more like a stock. So we try to break things down simple here on the show, but like, obviously, the world of investments is vast, thousands and thousands types of, of investments you can invest in.

• 16:24Speaker 03

  That's right.

• 16:25Speaker 02

  The one thing I wanted to say is that sometimes people think stocks are risky, bonds are safe, can be. But you remember, a bond, just because you put your money in a bond, if you don't hold it to maturity, like a government Treasury note or something like that, it does fluctuate in value. A lot less volatility than some stocks, but that does, you can lose value if you need to sell it within the timeframe that the bond is offered for.

• 16:53Speaker 03

  And what is one of the things that has an impact on the bond's change in value? What's something that?

• 17:00Speaker 02

  So that's considered inflate, interest rate risk.

• 17:03Speaker 03

  That's right.

• 17:04Speaker 02

  Right? So if interest rates go up or down while you're holding that note, while you're holding it, the value of that bond fluctuates up and down. It can go up in value, it can go down in value, depending on what's going on with interest rates. And so that's one of the things to consider. If you're holding it to maturity, you'll get the interest rate that was stated, and you'll get your money back and, and, you know, quote unquote, you didn't have to fluctuate with that. But if you need to sell that bond while you're holding it because of the change of income need or a desired, I want to sell it and I want to move into a different investment, and you have to sell it middle of that term, you could either gain value or you could lose a little bit of value. But the usually the, the fluctuation

• 17:46Speaker 02

  of those values is a little bit less than you see on some stocks. So not all stocks are created equal, not all bonds are created equal.

• 17:53Speaker 03

  That's right.

• 17:53Speaker 02

  There are some stocks that are more conservative than some bonds, and some, some people don't realize that. So when we talk about allocation or looking over your account, you know, it's really complicated in there. You always want to break things down to as simple as possible so that what you're doing and your financial plan is, is simple and easy and repeatable, and you can keep doing it. You mentioned trading for two years. You know, I don't know how active you are in that world, but you know, that, nothing wrong with that. But, you know, a lot of our clients who have won with money, it's, it's more consistent monthly donations or contributions.

• 18:28Speaker 03

  It could be that they, they've been investing for two years.

• 18:31Speaker 02

  Yeah, I just wanted to understand what bonds were.

• 18:33Speaker 03

  Mm hmm. Yep.

• 18:34Speaker 02

  Yeah. So great, great question. Another one that came in that we'll go over, it, go ahead.

• 18:42Speaker 03

  Oh, no, I just was gonna offer to read it. It says, hey, guys, big fan of MoneyWise. My parents were clients for many years before they passed. And now my brother and I are in our 40s, and we've recently discussed setting up a trust and wanted to ask the professionals what steps we should take to get started. Do we just Google who does trusts in town? Or do we go to the bank to get started? Thank you. Also, Woolworth's looks beautiful. Love the coffee shop, too.

• 19:07Speaker 02

  Awesome. Great question. And kudos for you being in your 40s and getting started. I wish everybody would do this sooner than later because estate planning is this fancy word of what you're talking about of putting together a trust or thinking about it. And estate plan sounds really fancy, but if you're someone who owns, you know, you have bank accounts, especially if you are buying your home from the bank, which means you own the house, you have title on the house. Obviously, you have to make your payments and do a few things, but you own the house. And if you own the house and something happens to you, you have to have a plan set up, or else that, that house could go through what's called probate.

• 19:47Speaker 03

  So what about, important about that, you might not think you have a plan. We all have a plan.

• 19:52Speaker 02

  Right.

• 19:52Speaker 03

  Not having an estate plan is a plan.

• 19:54Speaker 02

  Yes.

• 19:55Speaker 03

  Because, as you mentioned, there's probate that steps in and

• 19:58Speaker 02

  Yep.

• 19:58Speaker 03

  will decide for you who gets your assets.

• 20:01Speaker 02

  Correct. And a lot of people don't realize that. Everybody has an estate plan. Everybody listening right now, everybody hearing, you have an estate plan. Because if something happens to you, everything that you own is going to go to somebody else some way, somehow. If you don't have something in place, it's going to go through probate court and a probate judge is going to look at things and start to say, this is where the stuff needs to go.

• 20:23Speaker 03

  They do that for free, right?

• 20:25Speaker 02

  Yeah, nope, nope. And they don't need to do it in a timely manner either. A lot of times I would tell people like, hey, you know, because some people will say, well, I don't care. I'm going to be gone and they can deal with it. If it was not a super painful process, and even if there was a little bit of cost to it, I would say, hey, yeah, you know, that's a good mentality to have, but it's not that way.

• 20:43Speaker 03

  Right.

• 20:43Speaker 02

  And there's all kinds of dynamics and family realities and sometimes later in life remarriages and different things that you want to address. And you want to avoid family friction. That's what we talk about with estate planning as much as possible. Make it simple, make it a, make it a, you know, a good plan. The one thing I was going to say is that as you said, you know, should I Google somebody? There's a, there's a handful of a lot of great estate planning attorneys here in town.

• 21:09Speaker 03

  Definitely.

• 21:10Speaker 02

  Um, that you could literally just call and start this process. Unfortunately, a lot of times we've seen people might go do an initial consultation and get started and, and it just dies on the vine. And then eight years later, they still haven't done that. That's why we've actually been able to offer this to our clients here at Money Wise.

• 21:27Speaker 03

  That's right.

• 21:27Speaker 02

  Um, with estate planning and, and there's a wealth.com that we can walk clients through. Because there are certain situations that it's simple and easy enough that, that, that we can help facilitate. Somebody kind of putting theirs together. One of the things I'll say is some of the things to consider to start getting together, just to even have this discussion is you don't have to talk to a lawyer yet or anything like that. List your assets, write down all your bank accounts, your retirement plans, real estate, real estate investments, life insurance, if you have it. Valuable personal items that you might want to, you know, because some of the stuff is just going to get passed out. But there might be a few things that you own that you want to make sure that you, it's going to go to a certain person. And so.

• 22:08Speaker 03

  Yeah. What you're talking about is making an inventory. So you got the assets. It's also important to list out your debts too. Like, you know, do you have mortgages, car loans, credit cards that you might owe on?

• 22:18Speaker 02

  Yep.

• 22:18Speaker 03

  So.

• 22:19Speaker 02

  And then the other thing is get basic information of, of, you know, the folks that you're going to be part of this, you know, like if you're married, it's going to be your spouse. Name, addresses, phone numbers, beneficiaries of who you're going to leave this to if something happens to you. Or you and your spouse, if it's a spouse situation. Get those details together because those are the folks that you wanted to go to. You might also be somebody, maybe you don't have kids and maybe your plan is to leave some of the money or the proceeds from the house to a charity. Well, get the information together about the charity.

• 22:52Speaker 03

  I heard somebody say it that way. Children, church and charities.

• 22:55Speaker 02

  Yeah.

• 22:55Speaker 03

  Usually gets things.

• 22:57Speaker 02

  Yeah. And so then really it boils down to deciding key roles, you know, you're going to, you know, want to choose who the executor or trustee is going to be, who's going to, who's going to take care of all this stuff if something happens to me. If you choose it, you get to choose who does it and you get to tell them how you want it to go. If you don't choose somebody, you don't execute a trust or have things in place, the documents that you need. Like we mentioned, it's going to go to probate and the probate court and the probate judge is going to decide what to do for you. Uh, or where, or where the things go. And sometimes they may end up following kind of protocol and you don't want it to go that way.

• 23:32Speaker 03

  Yeah.

• 23:32Speaker 02

  Yeah.

• 23:33Speaker 03

  That is something worth Googling too, when it comes to average timeframe and the cost. As I mentioned, I was being sarcastic when I said they do it for free, right?

• 23:41Speaker 02

  Yeah. Yeah. So we're, we're big fans of, of getting this in order because another reason why getting a trust together, you can be, begin to select agents or somebody who would be in control for your medical concerns, your financial concerns, if you were unable to act, if you were in a car accident or something like that.

• 23:59Speaker 03

  See, that's the thing. It's not just what happens when I'm gone. It's what if I'm here, but can't make decisions for my own self, right?

• 24:06Speaker 02

  Yeah. You want to get that together. So again, check your current beneficiary designations. That's one of the most important things. If you have life insurance, if you have retirement accounts, look at every single account you have, make sure you have beneficiaries on them. You might even have bank accounts where you can put POD or TO, uh, POD payable on death. You can put beneficiaries on your bank accounts. Something happens to you and we're always fans of talking to professionals.

• 24:29Speaker 03

  That's right.

• 24:29Speaker 02

  Talk to Money Wise if you want to get started. There's some local professionals you can talk to. So definitely a great question, great concerns.

• 24:35Speaker 03

  Love it.

• 24:35Speaker 02

  Get started on your estate plan. It's a fancy word, but we all need it because if you don't have it, somebody else is going to decide where everything goes.

• 24:42Speaker 03

  Right.

• 24:42Speaker 02

  When we come back, let's talk Reverb Coffee.

• 24:51Speaker 02

  Everybody's waiting for a break like fast cars and freedom. Welcome back. This is the Money Wise Show. We are very excited to be joined by some friends of Money Wise. Sam Stoothoff and Jake Tovar of Reverb Coffee. They are just coffee connoisseurs. How are you guys doing, guys?

• 25:14Speaker 04

  Welcome.

• 25:14Speaker 03

  Hey, thanks for having us.

• 25:16Speaker 05

  Doing great.

• 25:16Speaker 02

  Yeah. Thanks for joining us, coming down from the, the happening spot upstairs, the corner of 19th and K. So really excited to kind of, and actually it's like, I've known you guys for a long time and I, we've never necessarily formally sat down and kind of got the whole story and I've heard bits and pieces. So I think one of the most important things to start out about Reverb Coffee is just sharing a little bit about the history, how it came about, and then how you guys ended up on the corner of 19th and K. So I don't know who wants to jump in there. Why don't you?

• 25:45Speaker 04

  Curious where the name came from. Gonna throw that in there too.

• 25:48Speaker 02

  Yeah. So let's share the story.

• 25:50Speaker 05

  The start, so.

• 25:51Speaker 04

  Yeah, totally. Um, so actually our other business partner, Keith Fialovos. Um, so it's Sam, Keith and I, uh, we are the co-founders of Reverb Coffee and Keith and I are cousins. And as my, almost like big bro, I've always had conversations with him over the years and we were eventually randomly talking about coffee. This was about probably last, uh, January, maybe a few winters ago. And, uh, he had ideas and concepts of wanting to do a coffee cart in San Francisco or a coffee project in San Francisco. He was talking to me about it. I was like, dude, do it. It sounds fun. Uh, I'd love to come up and take some photos of it as well. So, um, as he kind of was going through the sales, uh, the sales thing up in San Francisco, he eventually had more conversations with me of like, maybe we could check this out in Bakersfield. What does it look like in Bakersfield? So then him and I started doing a lot of market research

• 26:37Speaker 04

  of where Bakersfield is, where it's going, uh, and all that kind of stuff. So from there, um, I also had a good friendship with Emily Waite. Um, I am a photographer in town, so I've taken photos of her and her projects before and I knew, uh, the Wolver's building was kind of popping up as well. And Keith and I started talking about what it could possibly be if maybe we, uh, get a little spot inside the building. So obviously from there, Keith and I, we kind of just went into just pitching and conversations and asking Emily, hey, can we get 30 minutes of your time? Shortly after Sam joined us as well. So Sam wanted to kind of take it from there.

• 27:13Speaker 05

  I, I had recently just moved from Brooklyn. I moved with my wife here. She has family, a lot of ties there and decided it was time to make the shift, try a different town that starts with B. And we gave Bakersfield a shot.

• 27:28Speaker 02

  Yeah.

• 27:28Speaker 05

  It was, yeah, we're working our way through, but, and I've been in coffee for 18 years at this point. I got started in Seattle. Working with Stumptown, starting different cafes in Brooklyn, all over. I helped start a cafe in Tribeca. Just have been a part of the coffee industry for the last 18 years in various ways. So wanted to leverage my experience kind of in a place that reminds me of my hometown, which is where I got my first break. Which is just a small agricultural town, not as, not as hip and cool as the Seattle, um, that I moved to. And I really enjoyed my time around the community in a, in a situation like that. And I think Bakersfield is just ripe for

• 28:12Speaker 05

  a communally minded, community focused business and happened to link up with Jake, uh, through a good friend, um, uh, Rachel Wainwright. And we just rocked out from there. Yeah. Big, I owe her a lot. So.

• 28:26Speaker 04

  Big shout out.

• 28:27Speaker 02

  No, it's a win.

• 28:28Speaker 05

  Yeah.

• 28:28Speaker 02

  Hey, when, uh, so when you live on the East Coast, I just found out the other day, I'm horrible at geography. So I don't know how far this is from where you were, but did you ever go to California, Pennsylvania?

• 28:37Speaker 05

  No, I had never, I can't say I've had the pleasure.

• 28:40Speaker 02

  I was cracking up. I was looking at colleges the other day and this one, this, this college in Pennsylvania is in California, Pennsylvania. I'm like, that's hilarious. So.

• 28:48Speaker 05

  I bet you they get a lot of out of country recruits that are very confused.

• 28:52Speaker 03

  Yeah. Where are you from? California, but the, on the East Coast.

• 28:55Speaker 02

  Yeah. Yeah. Anyways, awesome. Well, uh, and so, uh, so then you guys did that. And so you're saying that, that we ended up on 19th and K because of the, uh, the, the relationship with Emily and some of that stuff. The crazy thing is, is like from my perspective and not even knowing kind of some of the, the bridge to how it all happened, like I, I've obviously been hearing about this building for, for five years, being at Money Wise and started this project, maybe not five years, but I forget, I forget what Christmas party we did. That was when it all kicked off because the, the cell, the building went through and then we did a Christmas party and it was upstairs was

• 29:29Speaker 02

  dust and mannequins and, uh, World War II, um, you know, surplus and rations. And, and we've heard about a lot of, uh, clients and people in the community knew about those. And so just wild to see how it's all gone. But originally it completely makes sense. Reverb or, or a coffee shop. And so like the fact that you guys are there, like it just fell into place, but it wasn't the original plans and it wasn't the original thought. And so it's just hilarious how, how well it's worked and how perfect it's become and the success that you guys have seen on the corner and.

• 30:02Speaker 03

  Definitely selling some coffee.

• 30:03Speaker 02

  Yeah.

• 30:03Speaker 03

  What, where's, where'd the name come from?

• 30:05Speaker 04

  Yeah, so a big shout out to David Kalkbrenner. He's actually our graphic designer, also Keith's best friend. So we're kind of workshopping names, probably went through about eighty, ninety, ninety names. And Reverb kind of came out. So we kind of started workshopping it, looking at it, seeing how it looked on paper, on cups. We would draw it and all that kind of stuff. So Reverb Coffee, from there, we did, of course, more market research to see if anyone had it or had the URL or the Instagram name or all that kind of stuff. So yeah, and then also Reverb kind of goes in hand, hand in hand with like the revitalization of downtown Bakersfield. Also being inside the Woolworths building and the basement being a concert space. Reverb, a lot of musicians in town, the Bakersfield Sound. A lot of things are just going with that. So it just felt

• 30:48Speaker 02

  Totally.

• 30:48Speaker 04

  overly right to name us Reverb.

• 30:51Speaker 02

  Yeah. And for, for those that get a full tour of the building, the third floor is full of reverb, not coffee, but just echoing noise because it's just a big

• 31:00Speaker 04

  Reverberation.

• 31:01Speaker 02

  Yeah. And so like, that's what's funny is because as, as they started the project, there's a few YouTube videos floating around where some local artists and stuff would record one of their songs upstairs, kind of acoustic because of the reverb. And so again, it's just funny. And, and that was at that time, there was no discussion of a coffee shop yet, right? Or whatever. And so you guys didn't even maybe have the name of it, but everybody was like, oh yeah, I love the, they call it Woolworth Sessions. If you research it on YouTube and stuff and John Ranger has a couple of songs that are awesome. So I've heard them live and I've heard them in the, in his studio version, well, the studio version on the third floor here of the building. So really, really appreciate that. And so like the fact that the coffee shop came together, it gets called Reverb.

• 31:45Speaker 02

  Like it just crazy how well it all fits. So

• 31:47Speaker 04

  You know, as he was talking, something else that stands out here, we talk about getting down to business. How cool that they put so much thought and care into the name. And then you did something really wise and that's, has it already been taken somewhere else? Is the website out there? Like, you know, that's just really smart. A lot of care went into this.

• 32:07Speaker 02

  Yeah. Yeah. So who, who was the, so who was the driver of the business side of things? It's like, sometimes you have like the artsy side and sometimes you have the business side. Are you guys a blend of it? Or how did that kind of work?

• 32:17Speaker 04

  So honestly, a big shout out, I wish he was here to kind of speak on this as well, but Keith P. Lovis, our main business partner, he's the driver. He's leading the ship, all that kind of stuff. He has that expertise. Obviously Sam spoke on his background of being in coffee for a while. And then I am a creative. I've been a full-time photographer since I was, gosh, 22 years old. It's about 10 years now, 32 now. But yeah, so I do a lot of the creative direction, but we all work in tandem and we kind of overlap. And as co-founders, it is a lifestyle. So it's, it's not a clock in at 8:00 AM, clock out at 5:00 PM. It's, it's going 24/7.

• 32:51Speaker 02

  Yeah, that's awesome. Well, I love the article that came out recently. It says the days of mocking pumpkin spice season are over. So if you're out there making your pumpkin spice jokes at Reverb Coffee, no more of that joking. Why? Because they have chosen to use the pumpkin spice in a positive way. This is Hunger Action Month and Reverb is going to be donating a hundred percent of the proceeds for the Smashing Pumpkin, which probably some ode to some music there. So, so they want that to benefit the community action partner of Kern, CAP-K. Many people refer it to. It is Hunger Action Month and it's really, really cool that you guys are going to be doing that.

• 33:35Speaker 02

  How did that kind of come about?

• 33:37Speaker 04

  Yeah. So obviously us CAP-K being our neighbors in downtown Bakersfield and our little neck of the woods on 19th and K. We've got to know a lot of their family, just a lot of their employees and all that kind of stuff. So we took, Sam, Keith and I took a tour of their food bank about what, three weeks ago now, maybe a month ago now? Shout out to Laura. She kind of facilitated this and we went to go check out the food bank. And then from there, they've partnered with a lot of local businesses as well, just to kind of help fight hunger and things of that nature. So she had the idea of just proposing a few options for us. Unfortunately, September is Hunger Action Month and a lot of people are into pumpkin and it's really cool as well. The color of Hunger Action Month is that orange,

• 34:18Speaker 04

  almost the same orange as like a pumpkin. So it's a little dive deeper as well. Being the creative and posting a lot on our social media, I actually went to Instagram about three weeks ago, asking our clients, our guests, our audience, what they want to see from Reverb in fall. And about out of the 40 responses, of course, about 25 to 30 was pumpkin affiliated. Whether it's pumpkin cold brew or pumpkin cold foam or a latte of some sort. So we knew the demand was there. And since the popularity and demand was there, we would love to make a drink that a lot of people can enjoy. So we could raise as much money as we can for Hunger Action Month.

• 34:55Speaker 02

  That's awesome. And I love the name Smashing Pumpkin. And so just for our listeners. Yeah.

• 35:01Speaker 04

  There you go.

• 35:01Speaker 02

  There you go.

• 35:02Speaker 04

  The Smashing Pumpkin.

• 35:03Speaker 02

  Come on.

• 35:04Speaker 04

  To smash hunger. You already got it. I don't even have to

• 35:05Speaker 02

  Dustin's, Dustin's are creative at Money Wise. The thing that I need to clarify for our listeners, the SP3, which is talked about a lot on this radio show, is not pumpkin spice.

• 35:17Speaker 04

  Right.

• 35:18Speaker 02

  So it's, it's a different drink. He's trying hard to get it on the menu.

• 35:21Speaker 04

  Is it, is the three, three shots?

• 35:23Speaker 02

  Yeah.

• 35:23Speaker 04

  Is that what he gets?

• 35:24Speaker 02

  Yeah.

• 35:25Speaker 04

  And he does the oat milk.

• 35:26Speaker 02

  Yeah.

• 35:26Speaker 04

  Shout out, shout out Sam.

• 35:28Speaker 02

  Yeah, it's good. It's really good. And the other day, I don't know if he'd ever had one cold. I'm sure he did, but I, I took him a cold one because it was kind of a hot day. And he's like, man, this is so good. I'm like, it's the SP3, just on ice, you know? So. But yeah, we're, we're fans. We love what you guys are doing. We really appreciate the fact that you're pouring back into the community. I didn't even think about the whole fact that CAP-K is right across the corner. So to be able to show some love to all the people that come over here and enjoy your guys' coffee is really, really cool. So we'll keep, we'll keep ringing the bell and telling people to get over there and have a pumpkin, Smashing Pumpkin latte to benefit CAP-K and, and trying to make a difference there for Hunger Action Month. Anything else you want to share with the listeners? Anything else coming up or?

• 36:10Speaker 05

  I would say CAP-K has plenty of opportunities to volunteer throughout this month. You'll be able to do any sort of, there's a food boxing situation where you'd be able to volunteer your time. They have plenty of openings for volunteers, but yeah.

• 36:24Speaker 02

  They are, they are volunteer driven. We, we as, as, as a company went there on a regular basis. And it's one of the funnest things that we've done as an office and, and serving because they're, they're organized there. Obviously they've been impacted by some of the changes and the financing and the funding of, of different programs. And I know people have different political leanings and views and all this different stuff, but I'll tell you what, they work really hard. One of the things that I believe we mainly helped fill boxes for were senior citizens in our community that might be experiencing hunger issues or, or food insecurities. And we would help fill up those boxes, very organized, fill up pallets. We would always try to see how many boxes we could get done. They put those, they put those over there and then folks drive through the line and are able to take

• 37:09Speaker 04

  You talk about people driving through. The line was wrapped around for many blocks.

• 37:13Speaker 02

  Yep.

• 37:13Speaker 04

  Lots of people.

• 37:14Speaker 02

  And so it's good to see that money get to you. So a lot of times people have, like I said, views of different things and then they, they've never gone and seen it. Go, go, go talk to the folks at CAP-K. Go see what they're doing. Get a group together and go volunteer because they really need it. And if you are a business or an organization that's looking to do something once a month or every other month, they can put you on the calendar and you can take a group of 10, 15 people. And it's really fun to serve together in that manner. They, they, they have a couple of big A fans, I think they call them. We'll keep it PG 13 here. They have music playing and, and a good program going there. So it's a very, very impressive operation there to serve those folks in our community. So thank you, guys.

• 37:56Speaker 02

  We'll take a quick break and when, when me and Dustin come back, we're going to talk a little bit about market bubbles.

• 38:02Speaker 04

  There it is.

• 38:02Speaker 02

  We'll be right back.

• 38:07Speaker 02

  Welcome back. This is the Money Wise Show. I'm your host, Chris Pelster with Mr.

• 38:12Speaker 04

  Dustin Weaver.

• 38:13Speaker 02

  Mr. Dustin Weaver.

• 38:15Speaker 04

  Yes, sir.

• 38:15Speaker 02

  And we did have a couple of comments that came in during the show. Let me see if I can find them real quick. Where'd they go? Where'd they go? So says, hey, when do you guys plan on adding the SP3 drink to the drink menu over there at Reverb? That Seth Perry guy will never shut up about it. LOL. Guess who that message is from?

• 38:35Speaker 04

  It's from Mr. Seth Perry.

• 38:37Speaker 02

  The, the, the, the brainchild of his drink there. So thanks Seth.

• 38:42Speaker 04

  We'll have to talk to him about it.

• 38:43Speaker 02

  Yep. Yep. So another message came in, said, I love their coffee and great vibe in the building. So thank you for that.

• 38:49Speaker 04

  I agree with that.

• 38:50Speaker 02

  Yeah. And like I told you, it's crazy because Dustin, you know, you've been a great addition to the team at Money Wise. You've been here a couple of years, but like I was sitting in meetings five years ago, four years ago, and they were talking about buying this building.

• 39:02Speaker 04

  Right.

• 39:03Speaker 02

  And a coffee shop wasn't part of it yet.

• 39:05Speaker 04

  Wasn't part of it.

• 39:06Speaker 02

  You know, wasn't part of the, you know, discussion. And now down the road, man, it makes perfect sense. It's a great location. It's a great coffee. It's a great vibe. Kind of goes with the history, the Bakersfield Sound music. That was kind of the inspiration of some of the, of what they were wanting to keep was music and the Bakersfield Sound. And obviously the basement downstairs is they're wanting to have a, a good spot for local musicians and artists to be able to do their thing. And, and it's not a huge, you know, venue, but it's a great one to have like intimate concerts and to build up fans and stuff like that.

• 39:39Speaker 04

  Well, and that, so that name Reverb resonates with that, right?

• 39:42Speaker 02

  Totally. Yep. You go in there, there's usually a, a lot of times it's a record playing. They have a little vinyl record player and, and great coffee. So anyways, really, really appreciate all that stuff. What I did mention and what I wanted to kind of finish the show with today, because of some of the things that we talked about, and Dustin, you mentioned earlier that a lot of people are using the word overvalued or expensive, you know, when they're referring to stocks and stock market bubbles are a thing. There's a few things to consider when, when you know, you're concerned about a stock market bubble. Now, the thing I will tell you is, is doing this for over 20 years now with folks,

• 40:23Speaker 02

  fear of a stock market bubble has kept a lot of people from being more successful or more efficient with their money and their resources. And so as financial advisors here, we don't ever want to use the stock market bubble as like a fear tactic or

• 40:40Speaker 04

  Certainly not.

• 40:40Speaker 02

  You want to, you want to get fear and greed out of your portfolio at all costs. And you want to make wise decisions. And if you're working with an advisor, hopefully he or she is doing a great job in thinking through these things and your portfolio and your investments, this is being addressed. Hopefully if they are doing this stuff, they're doing a good job communicating it to you.

• 41:00Speaker 04

  Let's talk about that a little bit more. When you, when we say addressing, one of the ways we address it is we build strategies that are long-term.

• 41:08Speaker 02

  Right.

• 41:08Speaker 04

  They're not short sighted.

• 41:10Speaker 02

  Right. Yep. And so one of the first strategies to think about when you're talking about concerned about a bubble is own the total market or own a lot of the market, not just the top. So a lot of times when we talk about things on this radio show, we're talking about the five or 10 stocks that are always talked about and the Nvidia's and the Amazons and the Walmarts.

• 41:30Speaker 03

  Right.

• 41:30Speaker 02

  Those are important to be part of your portfolio. But if, if those are the companies that have just gone crazy and they're really quote unquote overvalued, that's where you're going to see a lot of the volatility if the bubble pops. And if you're diversified, that word we use, if you own a handful of stocks, the whole market might not be as impacted as some of those top 10, 15, 20 stocks that had just been going like crazy and momentum and buyers have been just still pouring money in them. When they take all their money out, that's the crash.

• 42:02Speaker 03

  Or even the top 10, 15, 20 of a certain category too, right? It's not necessarily always the, the biggest of the big. It's like the biggest of a category.

• 42:12Speaker 02

  Right. Another thing that you can do is you can tilt your investments or your stock exposure towards value companies versus growth companies. And so again, depending on how you're managing your investments, or if you're working with an advisor, like I know a lot of our accounts, we focus on that. Like when, when, when the market pulls back, we tilt over towards growth. When the market's overvalued, we tilt a little bit towards value.

• 42:38Speaker 03

  Which that, that name value, what they're looking at is how does this compare? How do the prices of the stocks compare to the earnings of the company?

• 42:49Speaker 02

  Right?

• 42:49Speaker 03

  Right. Cause some of those more growthy ones, you look at the, what we call a price to earnings ratio, that could get, that could drift high.

• 42:58Speaker 02

  Right.

• 42:58Speaker 03

  And when, when they say that the market's overvalued, sometimes that's what they're looking at is just that price to earnings ratio. And they look at averages and they say, okay, over the last 20, 30, 40, 50, a hundred years, you know, how do the prices compare to the earnings of the company? And they're tracking that and there are patterns and there has been historical data around that, but it's never a surefire like, oh, this, this means that they're going to go down.

• 43:23Speaker 02

  Yep.

• 43:23Speaker 03

  In the short run, right?

• 43:24Speaker 02

  And, and another way of looking at that too, is a lot of times when you talk about growth companies versus value companies, it's not tried and true, and there might be some growth companies that pay dividends, but a real simple way to look at it is growth companies are taking their profits and taking their cash flow and they're investing in technologies, they're buying other companies. Remember we just mentioned Nvidia is buying Huggy Face?

• 43:46Speaker 03

  Hugging Face.

• 43:48Speaker 02

  Hugging Face, right? So those companies are still investing their money and they're pushing forward. Value companies are paying dividends. So those ones tend to do a lot better when there's a lot of motion in the ocean, when there's a lot of chaos, right? They are paying a dividend. And so those are the companies that don't have a lot of fluctuations possibly in those times. When I mentioned earlier that there's some stocks that are less risky than bonds, some bonds move around more in volatile times than some really good companies, really good valued companies that are paying dividends. People aren't jumping out of those companies. They're saying, hey, these companies are going to be fine. I'm not selling. I'm not doing anything, even if some of the other parts of the stock market are going around.

• 44:30Speaker 02

  So the other, the other strategy is investing for dividends, uh, which is considered like value type stocks or blue chip stocks they're sometimes referred to. The other thing that you can do is equal weight your stocks. So that's a way to just kind of, you know, look at the different opportunities, um, to the influence of the, the, the return. So that's not market cap rating, that's equal weighted. So it's basket, it prevents the top stocks from dominating. So you don't just let your stocks go crazy. As your good stocks maybe go up, you sell a little bit of them out and you put them back to over the other parts of your stocks that aren't doing as well. You know, we call this, you know, like it could be rotation, you call it or something

• 45:12Speaker 02

  like that, but you're not letting your top stocks just run forever. And some people will say, I bought it and I never sold it. Well, that could be good, but it also could put you at risk if there is a quote unquote bubble coming around. These are some of the things that are being addressed and it's like some of our managed portfolios for clients. Hopefully if you're working with an advisor that's going for you, or that you have some sort of way that you're looking at this stuff yourself.

• 45:35Speaker 03

  Lot of different, lot of different, you know, things to track there. Almost sounds like at the end of the day, having professional management and a highly diversified portfolio can provide some value.

• 45:47Speaker 02

  Yep. Yeah. And the one thing that we talk about at times, people can think that maybe being super active can be best, but you can end up getting stuck in the emotional spin cycle, we call it. You're trying to chase returns during the good times and then you're scared to death of a downturn. And then when it comes back, you're afraid to reinvest and you can kind of get stuck in that emotional spin cycle. And the stock market historically has done very, very well. It's usually us as investors and humans that can, can get stuck in that cycle and kind of do what we're not supposed to do, or do it at the wrong times, right?

• 46:18Speaker 03

  Behavioral management.

• 46:19Speaker 02

  Yeah. Well, thank you. Great show. Thanks, Stephen. Thanks, Reverb. Thank you guys for being, uh, making the show what it is. Be smart, be safe, be money wise.

• 46:33Speaker 01

  Securities offered through LPL Financial, member FINRA, SIPC. Investment advisory services offered through LPL Financial. LPL Financial and Money Wise Wealth Management are independent and owned and operated.