11/4/26 Trump Accounts Explained, America's Investing Gap & Election Market Trends

The Moneywise Radio Show and Podcast Wednesday, November 4th 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/ 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.

• 0:00Speaker 00

  Live from the basement inside the historic Woolworths 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 Money Wise Show.

• 0:40Speaker 02

  And welcome to the Money Wise Show. We are live from the basement of the historic Woolworths Building in downtown Bakersfield. For the next hour, you're on News Talk 96.1, 1230 AM, KERN, streaming live at MoneyWiseGuys.com. You can call or text into the show 24 hours a day at 661-396-1000. We are your hosts. I'm Sharad Waite and...

• 1:03Speaker 03

  Seth Perry, glad to be here, sir.

• 1:05Speaker 02

  Great, great having you. It's always fun doing the show with you, Seth.

• 1:08Speaker 03

  Likewise.

• 1:09Speaker 02

  We had, we had kind of a, a sensitive, emotional show yesterday. Sammy and I both shared some of our experiences about being young fathers and very limited budgets, you know, living our, our very frugal, low-budget lives, but really looking back on it very fondly.

• 1:35Speaker 03

  Yeah.

• 1:36Speaker 02

  We have a couple of really good listener questions, I think is going to bring up some of these, continuing on this, this conversation. So I want to maybe start there. Why don't we start with the listener questions?

• 1:46Speaker 03

  Let's do it. So, first question, can grandparents put money into these Trump accounts? Are there limits on how much we can give? Thanks, guys.

• 1:56Speaker 02

  Yeah, great. We did mention Trump accounts. I had a listener ask about them yesterday. So the answer to that is what, Seth?

• 2:04Speaker 03

  Yes, absolutely.

• 2:05Speaker 02

  I think anybody can contribute it for anybody.

• 2:08Speaker 03

  Yeah.

• 2:08Speaker 02

  There's no limit.

• 2:09Speaker 03

  If you can convince them to.

• 2:10Speaker 02

  Yeah, yeah. If anybody wants to open up a Trump account for me, I'll take your $5,000.

• 2:16Speaker 02

  So, yeah, it can be anybody. 5,000 is the, is the cap. And an employer can do it, for example, grandparents, your neighbor, anybody can throw money into it. And think of it as a, essentially a long-term savings plan with one of the biggest catches being that once you set up that account for your kid, you, your kid will get it when they're 18 and there's no other way around it.

• 2:44Speaker 03

  Yep.

• 2:44Speaker 02

  There's nothing else you can do about it. They legally have, are entitled to it and they can pull it all out and do whatever they want with it.

• 2:50Speaker 03

  And it converts to an IRA.

• 2:51Speaker 02

  Yeah.

• 2:52Speaker 03

  It converts to an individual retirement account at that point. And so then it follows all of the normal IRA rules.

• 2:57Speaker 02

  Right, which means 10% early withdrawal penalty.

• 3:01Speaker 03

  Can't withdraw until you're 59 and a half.

• 3:03Speaker 02

  Right. You pay taxes on the money that you pull out. And so you, I can see already a lot of these 18-year-olds just doing that.

• 3:12Speaker 03

  Burning it. Just burning it.

• 3:14Speaker 02

  Which there's other ways. We've talked about 529s yesterday. College savings plans gives the person that's opening up that account much more control. They can change who the beneficiary is. They can, you know, they can, they keep control of that for as long as they want. And so there is some advantages to some of these other savings accounts than just the Trump account.

• 3:35Speaker 03

  Yep.

• 3:35Speaker 02

  And I think also the fact that it's like, it's pretty risky to put that money in and not being able to access it, no matter what.

• 3:45Speaker 03

  Yeah, you don't have...

• 3:45Speaker 02

  For 18 years.

• 3:46Speaker 03

  Yeah. I mean, you don't necessarily have the control too, when they turn 18. And

• 3:50Speaker 02

  Yeah.

• 3:51Speaker 03

  What I see with clients is it's all comes down to education. The, the parents and grandparents who invest and are confident in investing and have made money, they then educate the next generation down to where if you've, and I've saw a lot of friends, I didn't have that money, you know, handed to me at 18, right? But I had, went to Stockdale High, man. We had lots of friends that had a lot of money given to them. And the majority of them understood what investing was from a young age. Their parents would be involved showing them the accounts. And they didn't want to lose all that momentum. Maybe they, you know, took out a couple grand to do something with, but, you know, either way.

• 4:26Speaker 02

  You're saying from your experience, then, they actually, most of them, that were responsible with it?

• 4:31Speaker 03

  Yes.

• 4:31Speaker 02

  That's interesting.

• 4:32Speaker 03

  Absolutely.

• 4:32Speaker 02

  I was, I thought for sure you were going to say most of them blew it, right, when they turned 18?

• 4:36Speaker 03

  No, sir.

• 4:36Speaker 02

  Wow.

• 4:37Speaker 03

  No.

• 4:37Speaker 02

  That's great. So they actually used it to help improve their careers.

• 4:40Speaker 03

  And just kept it invested and all of those great things. Yeah.

• 4:43Speaker 02

  Yeah.

• 4:44Speaker 03

  So it really just comes down to the time we spend with our kids and the time, the amount of time we, we spend showing them kind of behind the curtain, our finances and stuff. And I love having, my daughter especially, she's almost 18. And a shout out too, to my daughter for scoring a couple of goals last night.

• 5:03Speaker 02

  Aight, water polo goals.

• 5:04Speaker 03

  Water polo, but they did lose. It was a very close game. But it was, it was a good game.

• 5:11Speaker 02

  Yeah.

• 5:12Speaker 03

  It was a great game.

• 5:13Speaker 02

  Yeah.

• 5:13Speaker 03

  But I love to have her sit down and see the budget, see where all the money's moving and coming and going, how to log in, all these things. That's the best thing you can do with your kids.

• 5:20Speaker 02

  Yeah, I agree. And that's one thing I really like about the Trump accounts is that at least it's introducing people who previously didn't have any introduction into saving long-term or investing in the markets. It gives them that opportunity. The $1,000, I would encourage anybody, take the $1,000 bucks. If you've, you've got these, this three-year window that if you're, you have, you're a kid that's born up until 2028, you can, you can...

• 5:46Speaker 03

  2020, January 1, 2025 through 2028, right?

• 5:50Speaker 02

  Right, the end of 2028.

• 5:52Speaker 03

  Yeah, so that's a four-year window.

• 5:53Speaker 02

  Oh, it's four years, okay.

• 5:54Speaker 03

  Five, six, seven, and eight.

• 5:55Speaker 02

  Yeah.

• 5:55Speaker 03

  Yeah.

• 5:56Speaker 02

  So that, I mean, that's, that's fantastic. You get that free money, because then, you know, worst-case scenario is they just blow it, but it was all free money anyways, so...

• 6:06Speaker 03

  And it's going to be invested aggressively because the government has, and this is a kind of something I researched on the side with this question, is like, who got to choose these? I think State Street has a couple of them, BlackRock, and then there's one other one. But they're all basically S and P index funds. And the government requires them to not charge any more than 10 basis points or 0.1% in expenses.

• 6:27Speaker 02

  That's fantastic. That's really good.

• 6:29Speaker 03

  So I mean, this thing's just going to ride with the market. You're going to see it take the big guys and the big lows, but over a long stretch of time, I mean, imagine, $5,000 put in one time, plus the government's thousand, it's like, that could really balloon to something crazy, 60, 70 years when they go to retire.

• 6:45Speaker 02

  I'm, I'm a fan of that. I'm fine that, that they just kept it simple and keep it low cost, keep it passive investing, so that people don't get cute with their investments and mess up the plan.

• 6:55Speaker 03

  Yes.

• 6:55Speaker 02

  And it is ideally, it's till they're 59 and a half. So like, you don't have to worry about being too aggressive. You've had 40 years, 50, 59 years to be able to ride it out.

• 7:06Speaker 03

  Yeah.

• 7:07Speaker 02

  Whereas it brings up another risk that if they turn 18 and they're just going to pull that and blow it, and it's invested in, in, in an index, in the S and P 500, that's volatile. They could, that fast year, they could lose 30%.

• 7:17Speaker 03

  They turn 18 in 2008, that's, that's a tough year to turn 18. If you got handed that money and you're going to blow it.

• 7:23Speaker 02

  Yeah, sure. You lose 40% of it or whatever. And so just, hopefully though, it doesn't still good savings practice, you know, principles. Great question. Let's go to the next, let's get the most, move on to the next one.

• 7:36Speaker 03

  All right, let's do it. I know, this is a great question. I know you guys talk a lot about Wall Street, but out here on the farm, things are feeling very different. But does a strong market help local ag workers? Or are those two completely separate worlds? Feels very different, but you guys are the money guys. Great question.

• 7:54Speaker 02

  Yeah, I, this is so, so appropriate. I mean, we're kind of seeing this discussion now a lot around this midterm election where, I mean, I see this in every election that we have, whether it's state or federal, there is a disconnect between the stock market and the economy. And, or people's personal economy and then the stock market. It's oftentimes are very, very disconnected, which is a perfect environment for politicians to fool us.

• 8:30Speaker 03

  Yep.

• 8:30Speaker 02

  And make us believe things that they don't have any control over and that we think they should have control over. And so I think the biggest thing to understand is that only 56% of Americans, so almost half of Americans, don't own any stock. Think about that. Like, so even if the stock market does super well, the direct impact for investors is only going to impact about half of Americans.

• 9:04Speaker 03

  Yeah.

• 9:05Speaker 02

  And then what you find if you look specifically into those numbers, that most of the, most of that is, is in very, very large accounts. So then you have a lot of people that have very, very small investment accounts. And then you have a smaller number of people that just have these massive sized, multi-multi-million dollar accounts. And so it skews sort of these averages that people see when they look at what the average person has saved for retirement.

• 9:34Speaker 03

  Yeah.

• 9:34Speaker 02

  And, and so what that means is there's even, there's even more people that don't, don't feel like they're participating in the stock market.

• 9:44Speaker 02

  For, for the other half of Americans, and that's the majority of those, their participation in the stock market is through their 401K or their retirement account.

• 9:52Speaker 03

  I was just thinking the same thing. And the, the average 401K in the US right now, according to Vanguard, for a 30-year-old, what do you think the average 401K is for a 30-year-old?

• 10:02Speaker 02

  A 30-year-old, average 401K?

• 10:04Speaker 03

  Balance, yep.

• 10:05Speaker 02

  So assuming they've been contributing, let's call it for six years, I would say it's $30,000.

• 10:11Speaker 03

  50?

• 10:12Speaker 02

  Okay.

• 10:13Speaker 03

  50,000.

• 10:13Speaker 02

  Better, better than I thought.

• 10:15Speaker 03

  Now jump 20 years ahead.

• 10:17Speaker 02

  So an average 50-year-old?

• 10:18Speaker 03

  Yeah, an average 50-year-old.

• 10:20Speaker 02

  150,000.

• 10:22Speaker 03

  Okay, so here's where the statistics come in, and it's a little scary. The average, average is 214,991. But the median, remember median from middle school math is middle. The middle number is only 78,000.

• 10:38Speaker 02

  Wow, that's what I'm talking about. That's because you have so many of these...

• 10:42Speaker 03

  Skewing it over, yes. People that are overfunding. So if you're listening to this radio show... Eight out of 10 millionaires become millionaires because of their 401k plan. Because they're pumping money into that, they're getting the match. But then the smartest Americans and clients we see and work with are the ones that if they get a, say they get a modest three or 4% cost of living raise the next year. Put 2% of that right into your 401k. So say you were doing eight, now you do 10.

• 11:11Speaker 02

  Yes.

• 11:11Speaker 03

  You're still getting a pay raise. But most people, they just wanna spend more, buy more crap, buy bigger cars.

• 11:18Speaker 02

  Yeah.

• 11:19Speaker 03

  Move into a house that, you know, and it's.

• 11:22Speaker 02

  They spend, they spend that, that pay raise before they even get it, similar to like people with credit card issues. Yeah, it's like.

• 11:30Speaker 03

  Hundred percent.

• 11:31Speaker 02

  You get somebody who has a, gets a new credit card with a big limit. And all of a sudden it's like, oh, well, I can go and do this. And the same thing happens mentally with people. We call this style, lifestyle creep.

• 11:41Speaker 03

  Yep.

• 11:42Speaker 02

  Where you, without knowing it, all of a sudden you just get that little bit nicer car, a little bit bigger house. You know, more and more and more. And then before you know it, you're, you're still living beyond your means.

• 11:53Speaker 03

  Yeah.

• 11:53Speaker 02

  And you're thinking, how am I living beyond my means when I'm making more money than I've ever made my entire life? Most people continue their increase in their salary kinda continues to go up through their 40s and 50s. And yet, you know, we still have people who don't, who don't, are, are, are treading water.

• 12:11Speaker 03

  Yeah.

• 12:11Speaker 02

  And financially speaking, and they can't, they can't get a grip on it. So I, I love that philosophy of, when you get a raise.

• 12:18Speaker 03

  Pay yourself first, and that's how you do it.

• 12:20Speaker 02

  Yeah.

• 12:20Speaker 03

  Sock that extra money away.

• 12:22Speaker 02

  50, 30, 20 rule is, I think, a really great, uh, uh, rule of thumb for budgeters. If, if, if anybody is not familiar with that, the real brief explanation is 50% of your expenses goes towards things that you have to have, housing, food, insurance. Then you have 30% of your expenses going towards things that you, uh, uh, want. Or, or, you know, or need. And then, uh, 20% goes towards your long-term savings or debt. And, um, that, that keeps a lot of people, uh, out of trouble.

• 13:03Speaker 03

  Gotcha.

• 13:03Speaker 02

  If you can at least have some sort of, uh.

• 13:06Speaker 03

  And so back, you know, back to the, back to the listener question, unfortunately, I see it as you kind of are in different worlds. Now you can indirectly, because right now farming is just so difficult. So difficult, most of this equipment, most of the heavy equipment, unless I'm wrong, runs on diesel.

• 13:22Speaker 02

  That's right.

• 13:22Speaker 03

  And I'm driving back from Visalia last night, looking at what tends to be cheaper these, you know, I know the B20 diesel, which I'm not a fan of. Is like 50 cents cheaper, but right now the going rate anywhere I've seen is about eight bucks a gallon.

• 13:35Speaker 02

  Right.

• 13:36Speaker 03

  And I can only imagine what these harvesters and tractors, I mean, these things must consume quite a bit. Farmers tell us, I mean, let us know, do you, do you get fuel at a discount? Do you get subsidized for it? I mean, where, and then literally, this is a silly question, but where do you get your fuel? You don't roll, I don't see a lot of tractors or combine harvesters rolling through the,

• 13:57Speaker 02

  They have.

• 13:58Speaker 03

  Travel center, but so do they have remote that comes by and talks them off?

• 14:02Speaker 02

  Yes.

• 14:02Speaker 03

  And then they use the die to keep people from stealing it, I think. That's what they used to do in the oil fields.

• 14:07Speaker 02

  Okay. Yeah. And they also have their, their own, um, pumps, basically, right?

• 14:14Speaker 03

  That's right.

• 14:15Speaker 02

  We sound like idiots. Somebody right now is on their side, some farmers.

• 14:18Speaker 03

  Weren't you in a while, Seth? Yeah, but not on the downstream side.

• 14:22Speaker 02

  Yeah, not on the downstream, but it, you know, they have, um, uh, a place.

• 14:26Speaker 03

  Their own pump jack, their, their own, their own pumping station.

• 14:29Speaker 02

  Yeah. So they just keep it filled. They got service that comes out and keeps it filled.

• 14:32Speaker 03

  Tops it off.

• 14:32Speaker 02

  But you're, you're right. In terms of profits, US farm profits forecast a decline of five and a half percent this year. So expected lower. However, there is a, in Kern County, there's been a 12% increase year over year in, um, in ag production. It's almost $9 billion in gross value last year. But you have that, but you have, where there's so many challenges facing farmers. You have the, um, the sigma, the, um, ground, or not sigma, is it, yeah, the, the groundwater sustainable, you know, thing where they're, they're essentially forcing

• 15:16Speaker 02

  a lot of this land to go fallow. And so acreage has declined, harvested acreage in Kern County has declined approximately 4%. And we have increased costs, just the inflation is just killing them. It's not just fuel, you have labor is way up, labor costs. There's been some funny business that the state's been involved with that I know a lot of farmers aren't happy about. I know a lot of farm workers are not happy about it, like the, like the, uh, overtime, overtime issue and pay that has kind of screwed everybody over in, in.

• 15:50Speaker 03

  We've had Murray on and he, he broke it down. I mean, so, so well.

• 15:55Speaker 02

  Yeah.

• 15:55Speaker 03

  So difficult. And so it's like, they do operate on different economies, uh, different economics, crop part, crop prices, water availability, labor costs, exports, interest rates and weather, literally. I mean, I wonder what that storm did. Cause it's, that was a record-setting rain in October. I don't know if that affected any of our local farmers or not.

• 16:15Speaker 02

  I don't know.

• 16:16Speaker 03

  I know the freezes usually, it doesn't freeze like it used to when I was little. Unless it's just cause I'm in a, I'm in a car and I'm not walking around on a playground.

• 16:23Speaker 02

  That's probably.

• 16:24Speaker 03

  Remember that?

• 16:25Speaker 02

  Oh, yeah.

• 16:25Speaker 03

  My Bakersfield people, when it's, you know, you're, you're trying to throw a football and it's like 35 degrees outside and you're in third grade, but.

• 16:31Speaker 02

  Yeah.

• 16:32Speaker 03

  Anyway.

• 16:32Speaker 02

  Yeah. It, it, this comes back to just, you have people's own personal economy. And then you have the, the global economy and your personal economy, you'll take this, for example, when you're in oil. If you are, if you, your job is an oil company, an oil producer. And then you are investing in oil stock in your 401k. Uh, you're, you are so involved and wrapped up into oil when there's a shock to the energy sector.

• 17:00Speaker 03

  I lived it.

• 17:00Speaker 02

  You're, you're hurt.

• 17:01Speaker 03

  Yeah.

• 17:02Speaker 02

  You've lived through it. And that, that doesn't necess, uh, energy shock or a, a drop in, in energy prices and values doesn't necessarily mean that the overall economy is, in fact, sometimes it means the overall economy is doing good.

• 17:15Speaker 03

  Yeah.

• 17:15Speaker 02

  Yeah.

• 17:16Speaker 03

  Exactly.

• 17:16Speaker 02

  And so you have this other, you know, place with ag and, ag and oil, I see that, we see that because this is our area. It's dominant by oil and ag and I've seen it up and down. You always have this, you know, up and down during those two things. And we're only talking about two sectors. Look at all the other sectors that are out there. I, you know, the information technology, uh, transportation, you see this. So, you know, things are cyclical and sectors and go, go in cycles. And so.

• 17:44Speaker 03

  This is why when you're building an investment portfolio.

• 17:47Speaker 02

  Yes.

• 17:48Speaker 03

  Diversify, diversify, diversify.

• 17:50Speaker 02

  Yeah.

• 17:51Speaker 03

  For this exact reason.

• 17:51Speaker 02

  Yeah. It's hard for people to do that sometimes because when you diversify, I think in their minds, they think, well, now I'm giving up the possibility of hitting that home run.

• 17:59Speaker 03

  Hitting the home run, yeah.

• 18:00Speaker 02

  Buying that one stock that goes through the roof, you know?

• 18:03Speaker 03

  When you track these rumors down, because you, you know, you'll have, oh, oh, well, my cousin's brother bought, you know, pancake Bitcoin and made, you know, blah, blah, blah. And the actual people that are actually making money are so few and far between, but all the hype.

• 18:20Speaker 02

  Yeah.

• 18:20Speaker 03

  It's, it's emotion and greed and like gambling. People want to, I got hooked into crypto trading back when it, when it did its first boom. And man, I made several thousand dollars in a very short period of time. And did I sell? Or did I get greedy thinking I was gonna be a millionaire? I was greedy.

• 18:38Speaker 02

  Yeah.

• 18:38Speaker 03

  And I lost a bunch of money.

• 18:40Speaker 02

  Yeah.

• 18:40Speaker 03

  Honestly, and that was just so dumb, right? When I look back, but. Yeah. You're better off just, you know, keeping it plain, not super sexy. The millionaire next door, that's a great book, by the way, The Millionaire Next Door. But the average millionaire is driving a vehicle that's like seven years old.

• 18:56Speaker 02

  Yeah.

• 18:56Speaker 03

  You know, they're not driving the BMW or the big lifted diesel with.

• 18:59Speaker 02

  You know what the most, uh, popular car is by millionaires?

• 19:03Speaker 03

  Probably a Lexus.

• 19:04Speaker 02

  Nope.

• 19:05Speaker 03

  Uh, Honda Accord?

• 19:06Speaker 02

  Nope. Not, not close.

• 19:09Speaker 03

  Come on, give me a hint.

• 19:10Speaker 02

  It's a truck.

• 19:12Speaker 03

  A truck?

• 19:13Speaker 02

  F-150.

• 19:14Speaker 03

  And why would, why would they do that to themselves? So, so are you?

• 19:18Speaker 02

  You're not a Ford guy.

• 19:18Speaker 03

  Are you saying that millionaires aren't smart? I don't, oh, I'm just pissing off all the Ford fans. Listen, I have a 73 Mach 1 Mustang. I love the old Cleveland, right? But.

• 19:29Speaker 02

  The F-150 is the best selling car of all time, has been for like 20 years.

• 19:32Speaker 03

  Only because of why? They won the biggest government contracts.

• 19:37Speaker 02

  Is that it? Really?

• 19:38Speaker 03

  So Halliburton at one point, Halliburton had the most, you can fact check me if you don't believe me. They had the most registered vehicles in the United States outside of a government agency.

• 19:49Speaker 02

  And it was Ford?

• 19:50Speaker 03

  It was Ford.

• 19:50Speaker 02

  Ford contracts?

• 19:51Speaker 03

  So these big old contracts, you know, and, and they're, that's Ford's game.

• 19:54Speaker 02

  So it's fleet, the fleet trucks.

• 19:56Speaker 03

  It's the, you know?

• 19:57Speaker 02

  Well, they must, they must make better fleet trucks then, than GM.

• 20:02Speaker 03

  I believe so.

• 20:03Speaker 02

  Why wouldn't GM, why wouldn't they buy GM?

• 20:05Speaker 03

  I, I guess.

• 20:05Speaker 02

  Cause they're, I think.

• 20:06Speaker 03

  I loved mine. I had a, uh, I had a, they gave me a brand new 2008 Ford F-250. And what did I do?

• 20:14Speaker 02

  Wrecked it.

• 20:15Speaker 03

  I did. I was working down in Inglewood and I would always go to the 24 hour fitness there in Inglewood. And I was training for my first triathlon and thought, you know what? I'll go over to the Beverly Hills 24. I just want to change it up, right?

• 20:25Speaker 02

  Get a fancy one.

• 20:26Speaker 03

  And so here I am, dude, just, you know, young, mid, late twenties and going to the Beverly Hills, right? Which it was, it was a different vibe over there. But anyway, I'm in my F 250 and I leave and I wanted to grab a bite to eat, but I was very unfamiliar with the streets. And I got over into the right lane. What? No, no, I got over what I thought was the turn area, but it was actually a lane next to me and I didn't see the guy that flew up. And I side swiped him pretty good and that was, that was a tough situation. Now here's the craziest part of telling the story. I called my supervisor, Adam Wentworth. Okay. If you know Adam, give him a shout right now. And I, and I was, I was shooking up, man. I was, you know, I'm a perfectionist and I thought, oh my God, what have I done? You know, and he told me, I'll never forget.

• 21:10Speaker 03

  And I told my daughter this when she got in a wreck. I said, he said, look, it's just metal and plastic. We can replace it. I'm just really glad you're okay. I saw Adam yesterday when Desi and I had to walk to the Hall of Records or no, the Recorder's Office. I saw him and he, and he said hello, but he was on the phone.

• 21:25Speaker 02

  Oh, that's nice.

• 21:27Speaker 03

  Listeners are half asleep right now.

• 21:30Speaker 02

  No way. No, I think that's cool. I think that's a great story. Anyways, F 150 is the most popular car driven by millionaires.

• 21:36Speaker 03

  There you go.

• 21:37Speaker 02

  And more millionaires driving F 150 than any other kind of car. I would have thought, you know, Lexus.

• 21:41Speaker 03

  Is it the Raptor F 150 though?

• 21:42Speaker 02

  No, it's, I don't, I'm just F 150 in general.

• 21:46Speaker 03

  Raptors are good looking trucks, man. They are very good trucks.

• 21:49Speaker 02

  Trucks are like super nice.

• 21:51Speaker 03

  Oh, yeah.

• 21:51Speaker 02

  Super nice. Uh, we got time for this next comment?

• 21:55Speaker 03

  Yeah, I was just gonna.

• 21:56Speaker 02

  Let's try to squeeze it in.

• 21:56Speaker 03

  I was gonna throw, um, a couple on topics. So, uh, a listener asked, 5K a year or 5K total? It is $5,000 a year that can be contributed to a Trump account. So we just wanted to clear that up for you.

• 22:12Speaker 02

  That's right.

• 22:13Speaker 03

  And then another individual says, not only farmers, but how much money we use in fuel out drilling every day? Oh my gosh. I mean, they have the, they have the massive, everything's run on diesel. You have the power plants.

• 22:25Speaker 02

  Oh, yeah.

• 22:26Speaker 03

  It's thing is, there's not a lot of drilling, but the workover rigs still run on diesel. All their equipment runs on diesel.

• 22:33Speaker 02

  It's so expensive. We've had, you know, Chad Hathaway is on this show and he's talked about how much money, how much of his budget goes towards just power.

• 22:42Speaker 03

  Yeah.

• 22:42Speaker 02

  Like to PG and E.

• 22:44Speaker 03

  Yeah.

• 22:44Speaker 02

  It's insane.

• 22:45Speaker 03

  He's not doing a solar farm or anything?

• 22:47Speaker 02

  He has solar. Yeah. He has, he has all of that stuff, but you still have, it just requires so much energy and so much power. And, and so it's, yeah.

• 22:57Speaker 03

  We did have another one real quick. When I was in high school, Dodge Ram trucks were the number one selling pickup. LOL, not a good truck.

• 23:06Speaker 02

  I, Dodge Ram changed their, uh, this maybe.

• 23:09Speaker 03

  The body style?

• 23:09Speaker 02

  The body style.

• 23:10Speaker 03

  Like nineties, mid nineties?

• 23:11Speaker 02

  It was like nineties. Yeah. And it was a hit. I remember everybody was like, oh yeah, nailed it. Nailed the, the, the design of it. I thought it was really, really good.

• 23:20Speaker 03

  Part is it's still a Dodge truck though.

• 23:22Speaker 02

  So it gets Dodge too?

• 23:24Speaker 03

  So I, I look like I wouldn't not drive a Dodge, but if I had a choice, I would drive a Chevy pickup truck and then a Ford. And then a Toyota and then probably a Dodge.

• 23:34Speaker 02

  Dodge would be down there?

• 23:35Speaker 03

  Yes.

• 23:36Speaker 02

  No Nissan?

• 23:37Speaker 03

  No, no, no, come on. Yep. No, those.

• 23:42Speaker 02

  Really Nissan hard bodies?

• 23:43Speaker 03

  It's like a truck with training wheels.

• 23:45Speaker 02

  Oh.

• 23:45Speaker 03

  No, I'm just teasing. And what is it? The Titan?

• 23:47Speaker 02

  The Titan's the full size. Yeah.

• 23:49Speaker 03

  It's the full size, but it just, when you look, okay, look at the rear, um, differential on, on some of those, like a Nissan versus an, a Ford pickup truck. And you'll see right there, like you're not doing real work with those trucks if you have to do real work. But they're economic with fuel and lasts forever.

• 24:07Speaker 02

  Yeah.

• 24:08Speaker 03

  If that's your jam.

• 24:08Speaker 02

  Yeah. And that is a lot of people's jam.

• 24:10Speaker 03

  It's a lot of people's jam.

• 24:12Speaker 02

  All right. We'll, we'll take a break. We had a few more questions and comments. We definitely want you to keep them coming our way. 661-396-1000. That's the number that you can text. Send us a message. You're welcome to call that number as well. And, uh, we're happy to, uh, talk about, uh, whatever, whatever it is you're asking. Yeah. Send them in. Love it here. Uh, we're gonna, we've got a lot more to talk about. We're gonna give a recap of the election, sort of how the markets are reacting to the election and why, and much more. We're money wise. Don't go anywhere.

• 24:51Speaker 02

  Thanks for tuning in.

• 24:54Speaker 02

  We're money wise. I'm shared. Your host today here with Seth.

• 24:57Speaker 03

  The song.

• 24:58Speaker 02

  Groovin', huh?

• 24:59Speaker 03

  This is it.

• 25:00Speaker 02

  Yeah.

• 25:01Speaker 03

  Wow.

• 25:02Speaker 02

  Yep. This is, uh.

• 25:03Speaker 03

  Makes me want to dance and I don't know how.

• 25:06Speaker 00

  Childish Gambino?

• 25:07Speaker 02

  Childish Gambino. That's it. That's right.

• 25:11Speaker 03

  Thank you.

• 25:12Speaker 02

  You're welcome.

• 25:12Speaker 03

  I feel chill, man. Like that, like I feel like I went from a anxiety eight, you know, to I'm like a one.

• 25:19Speaker 00

  Especially with this weather. It's just perfect, man.

• 25:21Speaker 03

  All the weather's beautiful, isn't it?

• 25:23Speaker 02

  So great. It's best. This is the best at Bakersfield.

• 25:26Speaker 03

  It is the best. Oh, by the way, was anyone else on the 99 freeway? Traveling north today. This is a true story. I left a south part of town at 7:40. I arrived at work at 8:31 AM and I had an 8:30 appointment waiting in the lobby for me. So they had closed what appeared to be, they closed down all of the northbound lanes. Cause they were replacing it. I guess a wreck happened and they were replacing the, the big yellow, plastic bins with water. They were replacing those, but they closed at least three of the four lanes down. And it was a bottleneck. So I get on the 58 and then it's forever the line waiting to get on H.

• 26:10Speaker 03

  So I'm like, oh, I'll just go to the union and work my way back. Nope. It's a 50 minute commute.

• 26:14Speaker 02

  That's like, that's like LA commute.

• 26:16Speaker 03

  People, there's listeners that have to do that every day.

• 26:19Speaker 02

  Yeah.

• 26:20Speaker 03

  And are, I'm not wearing a hat, but if I was, my hat would go off to you.

• 26:24Speaker 02

  No kidding. There was a construction thing. It wasn't like, it was just normal.

• 26:27Speaker 03

  I don't.

• 26:28Speaker 02

  It had to have been.

• 26:29Speaker 03

  I, it almost, I don't know that they would have done it then during rush hour commute. And then there was a cop on scene and I showed you the video. So I don't know. I don't know what they're up to.

• 26:38Speaker 02

  I looked it up a little bit over the break. We were talking about the millionaire cars. And I mentioned the F 150. It's been at the top of the list for as long as I've been tracking this statistic.

• 26:48Speaker 03

  What's the sedan? What's the car?

• 26:50Speaker 02

  Yeah. Number two, Toyota Camry.

• 26:52Speaker 00

  The Camry. That's right.

• 26:53Speaker 02

  Is that what you're thinking?

• 26:54Speaker 03

  Yes.

• 26:55Speaker 02

  Yeah. It's a midsize sedan, uh, staple among self-made millionaires. Next followed, number three is a Honda Accord.

• 27:03Speaker 03

  Yep.

• 27:04Speaker 02

  And then Toyota RAV4.

• 27:06Speaker 03

  Really?

• 27:07Speaker 02

  The RAV4 actually is interesting. It took, it, it beat the F 150 just for like a month or two here recently. We talked about it on this show. They're very, very popular cars.

• 27:17Speaker 03

  They're, they're so nice. They're compact, super reliable.

• 27:21Speaker 02

  That's what Emily drives and I love it. She loves it. So practical. Just great, great little car. Honda CRV. And then this is the, you have to get to the, like the seventh, eighth spot before you get into the luxury brands at Lexus RX 350.

• 27:38Speaker 03

  That's what I bought my daughter in, in 08.

• 27:39Speaker 02

  Yeah. It's SUV, right? Small SUV. And then you have the Toyota Prius. Millionaires driving around in the Prius.

• 27:48Speaker 03

  Yeah, why not?

• 27:49Speaker 02

  To BMW three series, Subaru Outback. And final is the Mercedes Benz E-Class, which is like their midsize luxury.

• 27:59Speaker 03

  So if you can drive any of those cars, which of that list would you just pick to drive as your daily commuter?

• 28:05Speaker 02

  I, I mean, I like, I like, uh, like I drive any of these cars. They're nice. I mean, F 150 is just a big, I have to drive a midsize pickup. The bigger full size are a little too much for me. But, uh, I like Camrys. I like the Accords.

• 28:21Speaker 03

  Yeah.

• 28:21Speaker 02

  RAV4 is great.

• 28:23Speaker 03

  What a lot of people might not know, I might blow one or two minds out there in the air. But what is a Lexus? A Lexus is the upgraded version of Toyota.

• 28:32Speaker 02

  Yeah. It's just their luxury brand.

• 28:34Speaker 03

  So then you have Honda. What's above Honda?

• 28:35Speaker 02

  Acura.

• 28:36Speaker 03

  Acura.

• 28:37Speaker 02

  Yep. And then you have, uh, Nissan is Infiniti.

• 28:42Speaker 03

  Is it really? I did not know that.

• 28:44Speaker 02

  Yeah. And you have Genesis is for Hyundai. Hyundai has their luxury brand.

• 28:49Speaker 03

  Escalade is for Chevy, right?

• 28:52Speaker 02

  Who is it?

• 28:52Speaker 03

  Escalade? Am I crazy?

• 28:54Speaker 02

  Well, no.

• 28:54Speaker 03

  Or is that GMC?

• 28:55Speaker 00

  Cadillac?

• 28:56Speaker 03

  Ca- Cadillac?

• 28:57Speaker 02

  Well, no, that's just a manufacturer. It's the, their luxury brand for, isn't it GMC, right?

• 29:05Speaker 03

  GMC is Yukon. What could be the, am I just thinking of a model?

• 29:09Speaker 02

  Yeah.

• 29:10Speaker 03

  I don't, oh goodness.

• 29:12Speaker 00

  Didn't, didn't Chevrolet buy Cadillac in the nineties?

• 29:17Speaker 02

  No, no. Cadillac's always been known by GM.

• 29:22Speaker 03

  Backseat of a Cadillac. Remember that song?

• 29:25Speaker 02

  I think so.

• 29:25Speaker 03

  Can you soundbite that in or?

• 29:28Speaker 02

  We shouldn't be talking about things outside of our wheelhouse.

• 29:31Speaker 03

  Right. Yeah.

• 29:32Speaker 02

  Let's go right, let's go to the listener, listener message.

• 29:34Speaker 03

  Let's do it. Okay. Let's find the one we're on here.

• 29:36Speaker 02

  Yeah.

• 29:37Speaker 03

  Oh, by the way, Ralph Macchio, isn't that Karate Kid?

• 29:40Speaker 02

  Yeah, it is.

• 29:40Speaker 03

  He turned 65 today.

• 29:42Speaker 02

  Happy birthday, Karate Kid. 65.

• 29:44Speaker 03

  How is that possible? I still.

• 29:46Speaker 02

  He's 10 years older than Matthew McConaughey.

• 29:49Speaker 03

  Matthew McConaughey is getting younger, according to my wife anyway.

• 29:52Speaker 02

  Yeah. Matthew McConaughey is 57 today. Ralph Macchio is 65.

• 29:58Speaker 02

  McConaughey and Diddy are the same age. Both of them have a birthday today.

• 30:02Speaker 03

  Diddy turned 57. How is, Diddy's not doing so well, isn't he behind bars?

• 30:05Speaker 02

  I don't think he's doing well.

• 30:06Speaker 03

  He's behind bars.

• 30:07Speaker 02

  I think he's in prison.

• 30:08Speaker 00

  Yeah, he is actually in prison. He, uh,

• 30:11Speaker 03

  Why are we talking about this more?

• 30:12Speaker 00

  He got his release date moved. I think he gets out early March in 2028. He got it moved up.

• 30:20Speaker 03

  Hmm.

• 30:20Speaker 00

  But there was a news story this morning that when I was putting that in on his, uh, he got to choose his meal in prison today for his birthday.

• 30:29Speaker 03

  Oh, good for him.

• 30:29Speaker 00

  It was his gift.

• 30:30Speaker 02

  They do that?

• 30:31Speaker 03

  That's a slippery slope if we talk about Diddy.

• 30:34Speaker 02

  Did it say what he, what he ordered?

• 30:36Speaker 00

  Uh, I don't remember offhand, but it was anything special. I mean,

• 30:40Speaker 03

  Puffs the cereal perhaps?

• 30:42Speaker 00

  Yes.

• 30:44Speaker 03

  I don't know. Okay.

• 30:46Speaker 02

  That's pretty good. That was a pretty good one, Seth. I like that.

• 30:49Speaker 03

  Enjoyed the show yesterday and you were 100% right with the dumb Dow in all caps, dumb Dow. Look at those, look at these numbers today. Wow. And that segment segues us into the market.

• 31:00Speaker 02

  The numbers, NASDAQ's up 1.8%. The S and P 500 is up 1.7%. It's getting ready to close. Markets will close in about two minutes, uh, or 20 minutes. S and P 500, as I mentioned, up 1.7 and the dumb Dow is up 3% of 1,500 point gain. It's at 53,330. I am always fascinated by the dumb Dow because it, it, most people are familiar with it, but they don't really understand it.

• 31:33Speaker 03

  Yeah.

• 31:33Speaker 02

  It is our oldest, uh, uh, and most closely watched stock market index that we've had.

• 31:41Speaker 03

  Mm-hmm.

• 31:41Speaker 02

  It's, but the, why is it dumb? Well, it's only 30 companies. And the other problem with it is that they are all price weighted. It's a price weighted index, which means it's just the price of the stock.

• 31:56Speaker 03

  If they have a stock split, they're gonna fall on the Dow or?

• 31:59Speaker 02

  No, it's not the stock split that messes it up. It, what happens is it's the, it doesn't, it doesn't represent the value of the company. It doesn't represent the size of the company. A share price is just how much it costs for that one share of the company.

• 32:15Speaker 03

  Yeah.

• 32:15Speaker 02

  But you, you, you have this problem with the Dow where you can have a very, very small company. That's very, that has a very low value compared to other companies, but its share price is very high. And so it's not a true representation of the economy or the market. Which is why like the Russell 2000, the Russell 3000, there you go. Now you're getting a good representation. Even the S and P 500, okay, now you're getting a good representation of it. The Dow though has got, evolved a lot over the years. Uh, we mentioned it's now over 50,000. It was in just nine, you know what it was in 1999? Take a stab at what the Dow was in 1999.

• 33:00Speaker 02

  So it's at 53,000 today.

• 33:02Speaker 03

  5,000?

• 33:03Speaker 02

  10.

• 33:03Speaker 03

  10.

• 33:03Speaker 02

  10,099 during the dot com boom. In 1972 is at 1,000. So we've gone from 1972 at 1,000 to today at 53,000 change.

• 33:18Speaker 03

  Uh, there are some, there are some interesting facts. Thank God for this question because I learned two really cool things today.

• 33:23Speaker 02

  Yeah.

• 33:24Speaker 03

  Now I'm gonna, I'm gonna test you, Jared.

• 33:26Speaker 02

  Okay.

• 33:26Speaker 03

  Where does it get its name?

• 33:28Speaker 02

  Oh.

• 33:30Speaker 02

  Is it a person?

• 33:31Speaker 03

  It's two people.

• 33:34Speaker 02

  Uh.

• 33:35Speaker 03

  I thought Dow Chemical and I think it is related to that, but it's Charles Dow, the financial journalist and co-founder of Dow Jones and Company and Edward Jones.

• 33:47Speaker 02

  Ah.

• 33:48Speaker 03

  The statistician and business partner of Charles Dow. And it was started in 1882.

• 33:53Speaker 02

  That's right.

• 33:54Speaker 03

  So you can challenge your, your buddies at work, be like, hey, do you know where this comes from? And you'll be the smartest guy in the room.

• 34:00Speaker 02

  How about that? Edward Jones, Charles Dow, Dow Jones.

• 34:04Speaker 03

  Yeah.

• 34:05Speaker 02

  How about that?

• 34:05Speaker 03

  Now we are in the Woolworth building, the historic Woolworth building. It blew my mind in researching for this question that FW Woolworth was on the Dow. And I, it was either in 76 or 77, they got replaced by the mega store Walmart. Because nickel and dime shops were it back in the day and they were the king around the world.

• 34:26Speaker 02

  Oh, yeah.

• 34:27Speaker 03

  And then here comes the giants, right? Costco and Walmart and these types of things. So it replaced them. Now they pivoted, Jared. They pivoted. What, what did they end up getting it? What, what did Woolworth pivot into?

• 34:39Speaker 02

  Shoes. Foot Locker.

• 34:41Speaker 03

  Yes, sir.

• 34:41Speaker 02

  Foot Locker was a big, big game changer for them. In fact, when, I'm stealing some of your thunder here, but when Woolworth went bankrupt in 96, 95 or 96, they, uh, they still had, uh, Foot Locker and it, and it was the one thing that was real profitable.

• 35:00Speaker 03

  Yeah.

• 35:00Speaker 02

  They ended up selling all of that all out, but it was the one area where, uh, Woolworth was still doing very well. In fact, that brand, Foot Locker, went on to stay in business up until they were bought out last year by, for millions, billions of dollars by Dick's Sporting Goods.

• 35:23Speaker 03

  Do they keep the name?

• 35:24Speaker 02

  They, I don't think, I think they do keep the name. I think, I think they do keep it somehow.

• 35:30Speaker 03

  I was wondering how, how did Dick's survive, but these other, remember Sport Chalet? They didn't make it.

• 35:36Speaker 02

  Right.

• 35:37Speaker 03

  And there was another one too. There was another, where the gym is now, the Choose Fitness. What did that used to be? Sports, ah, something.

• 35:44Speaker 02

  Sports Authority?

• 35:45Speaker 03

  Well, Sports Authority? There were two. There was one over by, uh, the Taco Bell on Ming Avenue too.

• 35:52Speaker 02

  Oh, right. That's right.

• 35:53Speaker 03

  So there's Sport Chalet and then there's one of them, I'm getting them mixed up, but either way.

• 35:56Speaker 02

  Yeah, yeah.

• 35:57Speaker 03

  Dick's came in and they've, they've stood the test of time.

• 36:01Speaker 02

  It's a tough business. Retail, retail has just been incredibly, uh, challenged, uh, as of late.

• 36:08Speaker 03

  Yep.

• 36:09Speaker 02

  Uh, you know, Dick's Sporting Goods just, and Foot Locker just recently announced their very first ever brand partner. They chose an athlete. Do you, have you heard this?

• 36:22Speaker 03

  I have not. So give me a, give me a hint.

• 36:24Speaker 02

  A hint? Basketball player?

• 36:26Speaker 03

  Wimby?

• 36:27Speaker 02

  Nope.

• 36:28Speaker 03

  Male or female?

• 36:30Speaker 02

  Female.

• 36:31Speaker 03

  Uh, Clark.

• 36:33Speaker 02

  Yeah, Caitlin Clark.

• 36:34Speaker 03

  Awesome. Right on.

• 36:35Speaker 02

  I was gonna say, the next thing is that her, her records, Caitlin Clark has, uh, has like, is it like three years in a row? Where she has the all-time, um, uh, scoring, single season scoring record?

• 36:50Speaker 03

  Yeah. And I think she's up there in assists too. She's,

• 36:54Speaker 00

  And she's not even the best player on her team.

• 36:55Speaker 03

  Yeah.

• 36:56Speaker 02

  Oh, she's not?

• 36:57Speaker 00

  No.

• 36:57Speaker 03

  Did you say best looking? What did you say?

• 36:59Speaker 00

  Player.

• 37:00Speaker 02

  Player.

• 37:00Speaker 03

  Okay. No, there's that other gal. What's her name? Sophie Cunningham or something?

• 37:06Speaker 00

  We're gonna get into topics that we,

• 37:07Speaker 02

  Tal Rossi? Diana Tal Rossi? Yeah, let's steer, let's steer clear.

• 37:11Speaker 03

  Let's steer clear.

• 37:12Speaker 02

  Yeah. She once again broke all-time WNBA records, including most points scored in a single season.

• 37:17Speaker 03

  Dang.

• 37:18Speaker 02

  Uh, it's incredible. Um, and so I didn't find out how much money she's making, but I also thought it's kinda interesting. Like Dick's Sporting Goods is getting into that game, like getting a, you know, actual,

• 37:30Speaker 03

  Why not?

• 37:31Speaker 02

  You know, partner.

• 37:32Speaker 03

  I have a hack. I have a hack I can share with our listeners. If you have, you might even wanna enroll. You might even wanna enroll your kids in Southwest baseball. Okay? But when you have players in Southwest, either fall ball or spring, they will send out a Dick's 20% off coupon. And Dick's never does like real sales or discounts, right? So 20% is no joke, right?

• 37:53Speaker 02

  Yeah.

• 37:54Speaker 03

  But when you're at the register, it doesn't have to be baseball equipment. So if you're waiting to buy that gym set, wait until the kids are playing fall ball. And then you get that coupon and save you a couple hunty.

• 38:05Speaker 02

  Yeah. Yeah. I like that tip.

• 38:08Speaker 03

  Right?

• 38:09Speaker 02

  You were, you were mentioning off the air, I think you were gonna talk about it on the air. You got another little hack. Well, like, tell your story.

• 38:17Speaker 03

  I went through a circumstance. Let's put it that way. So the old washer, I've got a Maytag. We bought it from our best friends before they moved out east and they're, they're high end. Like they're nice, commercial gray, blah, blah, blah, right? And they've been great. But the, uh, it got stuck. The washer gets stuck on the sensing and, um, wash cycle. And so basically it's done and I don't wanna pay to have it fixed. So Black Friday, uh, Lowe's was running a rip and deal. And it was like, if you spend 1,700 bucks, 1,699 or whatever on, Appliances, then they'll do free pickup and haul off. They'll do free installation and they give you the, the hook, the actual hookups. So that's like a couple hundred bucks worth of stuff, right? And, and it's all free. And so I got hooked.

• 39:01Speaker 02

  You're like, this is a deal. I only have to spend $2,000.

• 39:06Speaker 03

  And I'm like, well, zero percent for 12 months. It's only blah, blah, blah. Right? And so I was, I was all in. I bought it Saturday. Was it Saturday morning? It was Saturday morning. By Saturday night, I had buyer's remorse. And I thought, dude, I still have a Rockin Maytag dryer that works great. And I should probably just buy used or buy a new washer. And so that is what I've done. So literally SP3 is meeting someone tonight at my house at 6:30. They're bringing a used one-year warranty that they've refurbished a used, I think it's a GE washer. 160 bucks. And I'm giving him my Maytag that he can probably fix and resell for a couple hundred bucks.

• 39:47Speaker 02

  Right, right.

• 39:48Speaker 03

  And I've saved now $1,840.

• 39:52Speaker 02

  And you sleep.

• 39:53Speaker 03

  And I don't have a payment and I'm going to sleep better. But there is the sketchy thing. Who's clothes were washed in this thing, man? Like what if there's some oil in there, like some, some follicles?

• 40:03Speaker 02

  There's gotta be a way to just run it, flush it out.

• 40:05Speaker 03

  Just bleach it, man. Just run it through a hot bleach cycle four or five times. But no, I mean, that's like, this is nuts and bolts. I can afford that payment. It's not a big deal.

• 40:13Speaker 02

  Yeah.

• 40:14Speaker 03

  But like, doesn't matter how much, I don't want, why? It was a want, not a need. And I've made that mistake so many times.

• 40:20Speaker 02

  Yeah.

• 40:21Speaker 03

  When I always loved my truck and when I bought my truck, the 2021, I felt guilty. Cause my wife and mom talked me into getting it. I wanted to get a used one. They talked me into getting a new one. So I'm like, babe, she had an 08 Highlander paid off.

• 40:34Speaker 02

  Yeah.

• 40:34Speaker 03

  But I felt guilty. I'm like, you, you need a new car, right? So she went and got a 2017, uh, uh, Acura MDX. And so boom, we had a payment.

• 40:45Speaker 02

  Yeah.

• 40:45Speaker 03

  Low interest rates, but still boom, had a payment.

• 40:48Speaker 02

  Yep.

• 40:48Speaker 03

  Why did we do that?

• 40:49Speaker 02

  It's, you know.

• 40:50Speaker 03

  These are lessons learned.

• 40:51Speaker 02

  Yeah. There is a lesson there and not, and you know, there's, there's lies that we tell ourselves sometimes so that we can get what we want. And one of those is, oh, we deserve this.

• 41:01Speaker 03

  We do.

• 41:01Speaker 02

  I deserve this, you know, I've worked so hard and we're looking, oh, good on me.

• 41:06Speaker 03

  Good boy.

• 41:08Speaker 02

  You should read that, read that comment.

• 41:09Speaker 03

  I will. Yeah. This is classic. So this, this is just a fun one here. It says, guessing the stock market is happy today. What a good boy.

• 41:19Speaker 03

  It's like they're giving us treats like a good boy. And that, that's funny. Yeah. The stock market is a good boy. I mean,

• 41:25Speaker 02

  Oh, the good stock market.

• 41:27Speaker 03

  He's a good, he's had a hard day.

• 41:30Speaker 02

  It could go up 2%.

• 41:33Speaker 03

  Which is, which is crazy. And so the S and P, what are we up year to date now? Think 14, 15%?

• 41:39Speaker 02

  Yeah, check that out.

• 41:40Speaker 03

  Marcus just still rolling, I believe.

• 41:42Speaker 02

  You know, look into that. Um, the, uh, I want to, I do want to, we talked about this a little bit yesterday. Just there, the, the good news, when we have a midterm election, at least every time we've had a midterm election, going back to 1950, there's been 19 of them. We have had the stock market perform very, very well. The stock market has been positive every single time. Now, again, past is no indication of, of what's going to happen in the future. It just gives us some sort of idea of what's happened, but it doesn't mean that's always going to happen. But odds are that it, that we're going to end the year up because we're in a midterm election.

• 42:23Speaker 03

  Yep.

• 42:24Speaker 02

  And the average 12-month gain after an election day is 15.1%.

• 42:29Speaker 03

  Heck, yeah.

• 42:29Speaker 02

  But think about this, we're getting 2, 3% just today.

• 42:33Speaker 03

  Just in a day.

• 42:33Speaker 02

  This is, this is the perfect reason why people do not want to try to time the market. Because if you miss those couple of days.

• 42:41Speaker 03

  Yes.

• 42:41Speaker 02

  When the market turns, it's always right when it turns, like today, that you miss out on, like in this case, if it's, if it's, say it's up 2%, 2% of 15. So it's, it's like a pretty good chunk of the annual gains we got just in one day.

• 42:59Speaker 03

  Yep.

• 42:59Speaker 02

  And the average, but the average six-month gain after the midterm elections is 14%.

• 43:06Speaker 03

  Wow.

• 43:06Speaker 02

  Which means most of it happens in the six months.

• 43:08Speaker 03

  Got it.

• 43:09Speaker 02

  After the election.

• 43:10Speaker 03

  Got it. Well, this just comes to mind, being a numbers nerd, what a lot of people don't think about. Now, this is drastic, but we'll, we'll prove a point. If you have a, a thousand dollars invested, okay?

• 43:22Speaker 02

  Yeah.

• 43:23Speaker 03

  It drops 50%. It drops down to $500.

• 43:27Speaker 02

  Yeah.

• 43:28Speaker 03

  If it earns 50% back, how much is it worth? Do you earn it all back, Sherri?

• 43:32Speaker 02

  No.

• 43:33Speaker 03

  No, you do not.

• 43:34Speaker 02

  And you get like 25, you're up to $75, right? You're still short.

• 43:38Speaker 03

  So keep that in mind, guys. When you're looking at these averages, these highs, these lows, if, if something drops, say 50%, you have to actually have it now go up 100% just to get back to where you were. But we see how resilient the stock market is.

• 43:52Speaker 02

  Yeah.

• 43:53Speaker 03

  And how it's always been. And I love the charts. I know, um, you can just Google, what, what's the name of like the, basically if you show 10,000 invested in the S and P in the seventies, I show this to clients a lot. And it's a, it shows the growth and it grows to like 3 million.

• 44:09Speaker 02

  Yeah.

• 44:09Speaker 03

  But it, what's neat is it shows all these huge dips, you know, 2008, the different wars we've had, COVID. But it's still always just continues to go up.

• 44:19Speaker 02

  Right.

• 44:19Speaker 03

  It's not a guarantee, listeners, that things will, but.

• 44:22Speaker 02

  With time and you look at the chart, time is your best friend. And the more time that you have, the more that you can ride it out. It's also that math that happens when you lose, when you lose 50%, you don't need 50% gains to get it back. You need even more to get it back, is what scares people. And you gotta be able to just accept some of the, some of the risks. The, the, now that the, the, we, we know for the most part, how the election has turned out. I know it's not all completely, uh, counted and, and, and decided. But what we essentially have, or what I'm, what we foresee is a Republican president and Democrat Congress.

• 45:04Speaker 03

  So Senate and House.

• 45:05Speaker 02

  Senate and House. So, so both the House and the Senate. So what's really interesting is if you look back over in history and you look at how the stock market has performed when you have a Democrat president or a Republican president. Well, it depends on who is in charge of the House and the Senate and how, and how the stock market has performed on average. The very best scenario that we have for the stock market, where it's averaged 17% annual returns in the S and P 500 is when we have a Democratic president, but a split Congress. That means you either have a Republican-controlled Senate and a Democrat-controlled House or vice versa.

• 45:43Speaker 03

  Yep.

• 45:43Speaker 02

  That's the best case scenario. The second best is also a Democrat president, but a Republican House and Senate. The, then you have what we just are in right now.

• 45:57Speaker 03

  Don't tell me it's the worst.

• 45:58Speaker 02

  No, it's not the worst. It's the middle, middle ground is when you have a Republican president with a Republican House and Senate. So that's what we have right now. I know the midterms, these people won't take office until.

• 46:09Speaker 03

  January.

• 46:10Speaker 02

  January, whatever. So right now, that's the middle of the road, 13% gains. That's a, isn't that a pretty big jump? You go from the top of 17% down to 13% based off of, I mean, we don't, can't say, you know, correlation is causation, but it correlates.

• 46:27Speaker 03

  It does.

• 46:28Speaker 02

  And then you have, below that is when you have a Democratic president, all Democrat, president, House and Senate. That is 8%. Huge drop, right? That's a, you go from 13 to 8%. Now, when you have a Republican with a split Congress, which we don't have now, what?

• 46:49Speaker 03

  That's what we are in now, but not going to.

• 46:51Speaker 02

  No.

• 46:51Speaker 03

  We have a Republican with a split.

• 46:53Speaker 02

  Well, that's what, that's right. That's what we're going into. No, no, no. We're going into a Republican with a Democrat House. So not a split. Right? We're going into, right. But it, so in a scenario where you have a Republican president, but a split Congress, those Democrat and, and, and Republican Congress, 7%. And then the very worst average annual S and P return is with a Republican president and a Democrat House and Senate, which is what we're going into.

• 47:24Speaker 03

  What's the percent?

• 47:24Speaker 02

  4.9%.

• 47:26Speaker 03

  Brutal.

• 47:27Speaker 02

  Isn't that so wild?

• 47:29Speaker 03

  I'm, I'm banking on AI kind of messing with the correlation, hopefully. But we don't know. We don't know. We, we had a couple of really good ones come in. We're just gonna, we're just gonna mention them.

• 47:40Speaker 02

  Yeah.

• 47:40Speaker 03

  Yes, they are both GM, but it was just a big deal here in town when Cadillac and Three Way merged their car lots. The good old days when Three Way Chevrolet was on California Avenue. Oh, I remember that. I remember that.

• 47:52Speaker 02

  Yep.

• 47:53Speaker 03

  Then another gentleman says, was it Sports Authority or Big Five? This is from Big Al. So not Big Five is not the one I'm thinking of. It's Sports Authority. And then there was one other one.

• 48:03Speaker 02

  It was Sports Chalet.

• 48:05Speaker 03

  That's it.

• 48:05Speaker 02

  It was Sports Chalet, Sports Authority. And then a Big Five, I think is still in business.

• 48:10Speaker 03

  Oh, yeah. Yeah. You could get deals at Big Five. It's just, you know.

• 48:13Speaker 02

  Yeah.

• 48:14Speaker 03

  Lock your doors and stuff, but.

• 48:16Speaker 02

  Yeah. So Cadillac had, even though it's a GM, they had their own dealership, just like Oldsmobile. Oldsmobile had its own dealership at one point. You know, Buick, these, these, uh, GM brands. Um, and, um, so yeah, boy, man, we covered a lot.

• 48:35Speaker 03

  We did. And it's a flew by Steve. You are the man. Thank you, sir.

• 48:38Speaker 02

  Yeah. Thank you, Stephen.

• 48:39Speaker 03

  Rocking and rolling.

• 48:40Speaker 02

  Knows how to do it. It's like, it's like he's been producing radio for his whole life. Well, we're going to remind all of our listeners that if you would, if you'd like to, if you missed this or any of our past programs, go subscribe to the Money Wise Podcast. It's commercial free and on all major podcast platforms like iTunes, Apple Podcasts, or Spotify. We're going to have, be back tomorrow. You want to tune in tomorrow. In the meantime, you can send us your comments or questions, 661-396-1000. We're happy to address those, uh, at any time. And remember these three things. Be smart, be safe, and always be money wise.

• 49:19Speaker 01

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