4/3/25 Headlines vs. Reality: Staying Moneywise When Markets Try to Scare You

The Moneywise Radio Show and Podcast Thursday, April 3rd BE MONEYWISE. Moneywise Wealth Management I "The Moneywise Guys" podcast call: 661-847-1000 text in anytime: 661-396-1000 website: www. MoneywiseGuys.com facebook: Moneywise_Wealth_Manageme instagram: MoneywiseWealthManagement

• 0:00Speaker 00

  From the padded radio room off Stockdale Highway, here is Money Wise. Call or text in at 661-396-1000.

• 0:09Speaker 01

  I need a dollar, dollar, dollar, that's what I need. Hey, hey. Well, I need a dollar, dollar, dollar, that's what I need. Hey, hey. Said I need a dollar, dollar, dollar, that's what I need. And if I share with you my story, would you share your dollar with me?

• 0:30Speaker 02

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

• 0:40Speaker 00

  Now, let's start the Money Wise Show.

• 0:44Speaker 03

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

• 0:50Speaker 04

  Seth Perry. Welcome.

• 0:52Speaker 03

  Welcome, welcome. It is the Money Wise Show. We are live from the Garret Ellis padded radio room off Stockdale Highway. We're on ESPN, Bakersfield 1230, 101.0 FM, always streaming at MoneyWiseGuys.com. Seems to be, I guess they're really getting into this streaming podcasting thing nowadays. So...

• 1:11Speaker 00

  What's a podcast?

• 1:12Speaker 03

  But you know what? It's still awesome to listen on the radio. We love being on the local show. As national shows have taken over more and more and more, here we are live. You can turn it on, on your dial, so...

• 1:23Speaker 04

  Why is it called a podcast? Can we open with that?

• 1:25Speaker 00

  Yeah. What is a podcast?

• 1:27Speaker 04

  I'm on it.

• 1:28Speaker 03

  Do you know it? You gotta know it.

• 1:30Speaker 00

  I don't. I, uh, it's a radio show with no commercials that you can listen at any time.

• 1:37Speaker 04

  iPod and broadcast.

• 1:39Speaker 00

  There you go.

• 1:40Speaker 04

  Brought them together. There we go. Boom.

• 1:42Speaker 03

  All right. Well, you know, here we go. We, uh, I'm starting to think that Stephen might actually be some sort of genius when it comes to market activity, because I seem to come on the days when the sky is falling.

• 2:00Speaker 00

  The sky is falling.

• 2:01Speaker 03

  So, yeah. So, yeah, if you're paying attention to the markets this morning, if you've been near a TV screen, Trump made an announcement, came out with his list of tariffs, and the market has reacted. The NASDAQ, which is tech-heavy, worst day on the markets going back to March of 2020, lowest close since August.

• 2:25Speaker 03

  Um, so yeah, the, the markets have reacted to it and anytime we're all used to the markets going up and down. But when you have, you know, uh, down nearly 6% in one trading day, it's a big day. The S and P 500, the other major index that is the large cap kind of 500 largest companies on our exchange. Those 500 companies were down about 4% at some point today. Did you kind of have where the, where the, the numbers were at?

• 2:57Speaker 03

  Yeah. So yeah, the S and P 500 was down about 4.8% Nasdaq at 5.97 dropped there. It's at 16,000 550 S and P I mentioned 4.84. It's at 5,003 96 Dow Jones. 40,004 545. It's down about 4% volatility off the charts. The VIX, which measures volatility, kind of a gauge of investors uneasiness. Is up 40% today. When you, it makes sense. When you think about normal market moves, I remember not that long ago, we had a, almost a full year where the stock market never moved. Again, the S and P 500 almost never moved without, out of 1% day to day.

• 3:42Speaker 03

  It was either up a little bit, down a little bit, up, almost never up more than 1%, down more than 1% for almost a full year. Um, I remember those days, it was kind of boring as far as daily activity. Um, but when all of a sudden, when the market's not moving that much and all of a sudden it moves 6% in one day, you have the VIX, uh, going through the roof because you think about how much more it moved just in a one day volatile push.

• 4:08Speaker 04

  Have you ever, have you ever walked in the forest, Chris? Gone on a walk?

• 4:13Speaker 03

  Uh, I have.

• 4:14Speaker 04

  You have?

• 4:15Speaker 03

  Where, where's this going?

• 4:16Speaker 04

  So basically, you know, you're, you're walking and, and there's a sudden drop off. Okay. And, and you're kind of slipping your way down. It's a little muddy. Some frogs jumping around in the mud. Okay.

• 4:27Speaker 03

  Yeah.

• 4:28Speaker 04

  We're, we're, we got that image in our mind?

• 4:29Speaker 03

  Yep.

• 4:30Speaker 04

  So we're going to now hover up like a drone and we're going to look at the whole path. Something I always like to do. Today is rough. Today is not an easy day. However, when you look at the one year return, we are still up. The last 12 months, we're still up 3.5% reminder to our listeners and ourselves.

• 4:50Speaker 04

  Five year return, 116%. Well, it's eating into that, but still as an investor, you always want to take long-term approach.

• 5:00Speaker 04

  And we're okay. We're gonna be okay.

• 5:02Speaker 03

  Yeah, you know, I mean, it sounds like some people might be tired of hearing advice like this. And sometimes these are the hardest times to take the boring advice of, if you're invested appropriately, do nothing. Which fight or flight as human beings, when we have trouble come into our world, we want to do something, even if it's the wrong thing. We feel like we're doing something, if we're doing the wrong thing, which is what bad investor behavior is doing. Now, I'm not minimizing anybody looking at their account and seeing a number go down and this and that. But it is one of those things where the old boring tried and true, get some historical data, think about where we're at in the markets. I've been saying it for every week now that I've been on the show.

• 5:46Speaker 03

  The stock market ended negative in 2022. When we first saw high inflation, feds raised interest rates, stock market didn't like that. How big of an impact was that going to have on our economy? Is it going to be a soft landing? We were hearing all this talk. The market basically went up from that point, from the low point 2022, all the way back up. And now we've been positive all last year. We started out this year, first two months, positive. Over the last 12 months, we're still positive. It doesn't mean that we still might not go down a little bit, but it's just another one of those things of this is the ups and downs that we all talk about that we know about the markets. This is what it looks like.

• 6:28Speaker 03

  And if you're an investor or you have a portfolio that you're looking at, this is what it feels like. And one of the things that I always remind people too, is stress tests, however you want to do that, we can do that actually for our clients and look at some different things. What your portfolio like, hey, if my portfolio is a million dollars and it goes down 10%, that is $100,000 and a 10% move, depending on how you're invested, is probably quote unquote, "normal market activity," depending on how you're invested. So that's one of the benefits of working with an advisor is really understanding how you're invested. So that when these things happen, it's not that it's welcomed or awesome. It's the fact that you kind of anticipated that there are going to be this time. This is what it's going to look like.

• 7:13Speaker 03

  Hopefully that helps me understand what it's going to feel like so that I'm not prone to try to make drastic changes at the absolute worst times.

• 7:20Speaker 04

  I remember when I was, when I was at Halliburton, I had my 401k going and you know, I'm pumping money into that thing and 2008 happened. And thank God I knew, just leave it, leave your money in there, let it continue to do its thing. Because we were talking earlier about a situation where someone decided, hey, I'm going to just get everything out of the market. This is a, this is a younger person, they pulled everything and went cash. The problem is, how do you know when to get back in the market?

• 7:48Speaker 03

  Yep. Well, and that's, that's what always has to be done is you have to have a plan. You know, and, and we'll throw out some, some numbers and some figures before we had some great comments come in and stuff and I'm looking forward to getting those. But before we move on, just because it's that important of a topic, people don't realize, and actually I saw it up here, it was the difference. So what's crazy is the stock market has averaged almost 11% going back 15 years or so right now. 10.9. The crazy thing is this, the stock market is up 50%, 56% of the days and down 44.

• 8:30Speaker 04

  Yeah.

• 8:31Speaker 03

  So the difference is literally that. 6% or that 4%, right? Between the up days and the down days. So, and those typically happen so quick and so rapid that people think that by jumping out or jumping in, and that's the way to do it. But we always talk about, it's not about timing the market, it's about time in the market. Staying with the strategy that makes sense with, for you, staying with your strategy. And then it's funny because it's just that little bit of difference. And a lot of times I think people think, no, it's going down all the time, or no, it's, it's day by day, it's not that much different. Uh, and the cost of getting out, so they ran a study from 1995 to 2004. The stock market, um,

• 9:18Speaker 03

  it doesn't even say the return, but what it shows here is if you were to have invested $10,000 in 1995, and you just stayed invested in the S and P 500, which is the 500 largest companies, it would be around $224,000. Let me say that again, $10,000 to 224,278. If you just jumped out and missed the 10 best days between that timeframe, your return would have only been to 102,750.

• 9:51Speaker 04

  Hold on, hold on. So you're telling me, put 10,000 in, okay?

• 9:56Speaker 03

  1995.

• 9:58Speaker 04

  But if you missed only 10 of the best market days, you're getting half of your money.

• 10:02Speaker 03

  Half of your money.

• 10:04Speaker 04

  That's insane.

• 10:04Speaker 03

  Yep. So a lot of times, this is why we want to try to help people be as aggressive as possible with their comfort level and sticking with it. Because if you jump out, miss the top 10 days, it has huge ramifications. Now you still went from 10,000 to 102, so you still did well. You're still better off than doing nothing. Even if, did if you missed the 20 top days, you only are at $60,000. What is that? 30 years later? 30 years later?

• 10:33Speaker 04

  That's crazy.

• 10:34Speaker 03

  So you still got growth, but you can see how sometimes when you're getting pushed around by headlines, and, uh, you know, the benefit I have of, of being an advisor now for 20 years is I have heard headlines for 20 years scaring people to death about investing in stocks in the stock market.

• 10:50Speaker 04

  Have you ever seen the deal where they're, where they'll, they'll show, they'll take, um, It take like the title of the magazine and clearly the date and everything and they'll show you a bunch of different headlines. We should try to look that up.

• 11:01Speaker 03

  Yeah.

• 11:01Speaker 04

  They'll show you a bunch of different headlines and you have no idea when it's coming from.

• 11:05Speaker 03

  Yeah.

• 11:05Speaker 04

  And it's stuff that you would swear are today's headlines, but they happened in the 60s and in the 70s.

• 11:10Speaker 03

  Right.

• 11:11Speaker 04

  This stuff continues to repeat itself, right? I was reading about the economy a little bit the other day too, and something that doesn't get talked about enough. Trump and the tariffs and Elon and Doge, those are the kind of the scapegoats in a sense. Because the government pushed so much cash into the economy during COVID. And this, we're also now kind of experiencing some of those ramifications. Pretty wild.

• 11:35Speaker 03

  Yeah. Yeah, I found it. So right here, the S and P 500 index over the last three decades has averaged 10.9%. But the journey has not been smooth. 54% of the trading days were positive. 46% of the days were negative. So trying to time to make sure you're in there, the, you know, 54% of the time that it's up. And trying to avoid the 46% while it's down or whatever, it's just a losing, it's a losing game. The impact of the positive days far outweigh the negative ones. And so I'm not discounting human emotions. I'm not discounting how it feels or what it looks like. And when we see our accounts fluctuate, but try to really, really, really take a deep breath.

• 12:18Speaker 03

  Make sure, and sometimes unfortunately, even if you're conservative and in retirement, your account still goes down, but the stock market might've went down 6% today and you're down one. And you still feel like, well, I'm down two, but it's like you're down much, much less than the stock market, which is, that's maybe the season or the way that you're invested. And so you're not having the same impact that what the overall markets are doing. And 95% of everything you look at, if you're watching headline news or you're watching any of the, the media outlets and this and that, they're talking about stock market, stock market, stock market. And a lot of people are not fully invested in the stock market. So you're, you're getting overwhelmed and seeing things that don't necessarily overwhelm your portfolio.

• 13:00Speaker 03

  And so you gotta just take a step back, take a deep breath and hopefully you're either. Working with a advisor or you've just continually honed your own personal financial investment skills and behaviors and you take a deep breath. We're going to talk about this a little bit more when we come back from a break and we do have some great comments. Hey, maybe it'll brighten your day.

• 13:20Speaker 00

  Have you been putting off your finances? Seize the day. Call the Money Wise office at 661-847-1000 or email [email protected] for more information.

• 13:40Speaker 03

  There you go. There you go. We all understand the markets go up and down and we say it, we know it.

• 13:46Speaker 04

  Like our cholesterol.

• 13:47Speaker 03

  And then when it does it, we're like, whoa, we don't like that.

• 13:52Speaker 04

  Blood pressure?

• 13:53Speaker 03

  Yep. So not discounting again, feelings and some of the things going on right now, but when we, when we say that like our whole goal is to make people money wise, that is it. And sometimes we feel like we need to do a bunch of stuff or make a bunch of changes. And that actually might be true. In the sense that if you're not invested correctly, maybe you do need to reevaluate things and make sure that you really have peace and confidence about the strategy you're in. But if you are in a strategy that really makes sense for you, then yes.

• 14:22Speaker 04

  Wouldn't you agree that it could be a great time to get into the market?

• 14:25Speaker 03

  Could be. Yeah. So, so again, humans, investors, we do the opposite. When things all look great and everything's going up, we want to jump in. And then when everything's going down, we all want out. And you know, that's the, the, the famous Warren Buffett quote is, you know, when there's blood in the water, when everybody else is getting out, he wants in, when everybody else is getting in, he wants out. And so, you know, it's easy to say those things. It's difficult to be in the middle of this because the other thing is, is you're listening to the headlines and tariffs and maybe you don't even understand what tariffs are and blah, blah, blah, blah. What's, how's this going to affect me? And it's, it is that fight or flight syndrome. You start to feel that panic. And so, you know, you, you just have to take a deep breath. You have to reevaluate things.

• 15:10Speaker 03

  It is one of the benefits. I just, we just read an article this morning that was talking about.

• 15:15Speaker 03

  The behavioral coaching that a financial advisor brings to the relationship can bring an extra one and a half percent performance on your account by following their advice and doing the behavior coaching things. Now, I've heard it through the years. Oh, you just want me to stay in this account or stay invested because you're making money. Well, that's true. That's how I make my living. But it's also historically been the way that people have consistently with low amounts of risk or a calculated amount of risk, I should say, to get positive returns within their risk profile, taking into consideration their income needs, life circumstances, changes, and even estate planning concerns. If an advisor can

• 15:56Speaker 03

  bring one to one and a half percent alpha or increase to your portfolio by following their advice, if they're doing a decent job, then that more than pays for their fees, right?

• 16:07Speaker 04

  Yeah, if you talk them out of taking one of those 10 worst days, it can make a one, even if it's a 1% return difference over, say, you've got a guy in his 30s and he's, you almost go, get out of the market right now. I'm going to pull everything into cash in my 401k. If we can prevent them from doing that, just a one or 2% difference over the next 30 years,

• 16:26Speaker 03

  Right.

• 16:27Speaker 04

  it could be hundreds of thousands of dollars.

• 16:29Speaker 03

  Yep.

• 16:29Speaker 04

  Huge.

• 16:30Speaker 03

  Yeah. So again, yeah, again, be smart, be safe, be money wise is what we rattle out there. And it's not just a saying and we've been around a long time and seen it. So hopefully you're either working with an advisor. If you're not, you can always call our office 847-1000 and just get in a, get a review. Maybe that will be enough to kind of say, hey, I am on the right path. No major red flags and, and just take a deep breath. We love doing the radio show. We know that we won't always work with every single advisor here in our local community or that listens to the show, but we want to try to help everybody to stay on track. The thing I will say, and I joked about, maybe this will brighten your day. So here's the, here's the, the lining. For the last few weeks, we've been talking about it. Unfortunately, me and Scott Cox did not start the, the egg company. Good thing

• 17:14Speaker 03

  we didn't. Why? Because Costco has five dozen eggs right now for $21.89 right now while supplies last.

• 17:22Speaker 04

  Wow.

• 17:23Speaker 03

  Yeah. Good thing we didn't start buying a bunch of eggs.

• 17:26Speaker 04

  You would have had egg on your face if you guys had have started that business.

• 17:29Speaker 03

  What was it? Warm temperature, room temperature?

• 17:32Speaker 04

  He said, you get one shovel full, you know, five bucks, whatever. Now, where you put it? I don't know. He said, you got one shovel.

• 17:40Speaker 04

  That guy is a riot.

• 17:42Speaker 03

  Yeah.

• 17:42Speaker 04

  Yeah, it was great being on his show. I think, what was it, last week or week before? I can't remember.

• 17:46Speaker 03

  Yeah, it's it's nice to do some, again, because there's so many shows that are piped in and this and that. And to have the local connection and some of these guys that have been loving our community for a long time. So kudos, Scott, and good thing we didn't.

• 17:59Speaker 00

  Have you heard his new deal now? He thinks that we should have those, see, my mom worked at Three Way Chevrolet growing up. So they they had, back in the day, these tubes that the girls would put offices and put them in and pew.

• 18:13Speaker 04

  For the burgers at the new joint.

• 18:15Speaker 00

  We should be doing that with the cheeseburgers over at the Woolworths.

• 18:18Speaker 04

  I'm not much of a drinker, but I threw it out there. I said, well, what about what about a separate tube for alcoholic beverages?

• 18:23Speaker 03

  Yeah.

• 18:24Speaker 04

  Because there's going to be the bar downstairs, you know, you're you're in a client review.

• 18:27Speaker 03

  You guys do realize that I would exceed the elevator weight limit.

• 18:31Speaker 00

  Weight capacity.

• 18:32Speaker 03

  If I could suction tube cheeseburgers up to my desk.

• 18:36Speaker 04

  Push of a button.

• 18:37Speaker 03

  Yeah, we can't have, we cannot have that. Next comment that came in, we do want to talk about this a little bit because it goes along the lines of what we've been talking about a little bit as far as investment options and different things. Good afternoon, Money Wise. Can you share your views on silver compared to gold as an investment right now? Also, how is Bitcoin doing year to date? Daily Dan. So, thanks, Dan.

• 18:59Speaker 04

  Thank you, Dan.

• 18:59Speaker 03

  Yeah, and and just high level, we can get into a little bit more specifics, but high level, gold is is kind of aircraft carrier, silver is destroyer. Does that make any sense?

• 19:13Speaker 04

  I want to hear about what that's about.

• 19:15Speaker 03

  So gold is is more stable. It has more utilitarian use in the economy and in production. So it tends to be much more or less volatile. It doesn't bounce around a ton, even though there are times where gold is volatile. Because when people are freaking out and they're buying a bunch of gold, it shoots up. And then when they finally get over that trend and they start selling out of their gold, it can crash down. But gold is much more utilitarian, so it's less volatile. It tends to head steady during market downturns. To whereas silver is a little bit more speculative, it's cheaper, so more people jump in and jump out on quick. Instances and so sometimes people try to play the silver market a little bit more than

• 20:00Speaker 03

  they do with gold, you know, gold bars if they're sitting in some safe like they're, they're not as easily exchanged, not, not that gold bars aren't, you know, or silver is, but just meaning silver is typically used on a lot more short-term basis as far as electronics, a lot more volatile.

• 20:16Speaker 04

  I think half of its use is for, you know, various.

• 20:20Speaker 03

  Silver?

• 20:20Speaker 04

  Mm-hmm.

• 20:21Speaker 03

  Yeah.

• 20:22Speaker 04

  Various things it's produced for versus just jewelry where gold is just kinda, kinda gold.

• 20:28Speaker 03

  Yeah, so a lot of people like these options because they're, you know, they're, they're seen as safe havens during economic uncertainties and different concerns. The one thing that a lot of people don't realize is how volatile gold prices can be. Historically, it has an upward trend, just like the stock market. I think we look back all the way to the Great Depression.

• 20:52Speaker 04

  All the way to the Great Depression, it was 5.6, no, 5.12% annualized return on gold.

• 21:00Speaker 03

  Right, so we've been talking about the historical data of the S and P 500 where you're holding the 500 largest companies that is the S and P 500, you know, that are trading on our exchange. This is not like necessarily a recommendation to do that, but just saying, some people think that, that gold has been done way better or that gold, you know, I guess doomsday type thing is going to be a better thing to hold, but it's like one of those things where when you look at even all the ups and downs and all the uncertainties of the last few decades, gold has done about five and a half. The stock market's consistently been averaging about 10 and even over the last three decades, it's averaged almost 11. So again, let me say that the S and P 500 has averaged almost 11, so when it pulls back

• 21:41Speaker 03

  4% in a day, even as scary as all that is, remember what it's been averaging per year for the last three decades.

• 21:48Speaker 04

  And that's compound growth, you have to remember that. If you're going from a 5% annualized return to a 10%, it's kinda like the Richter scale for earthquakes. You're not just getting twice as much money in theory, it's exponentially more money the, the higher percent return you can get. Gold is just down today, ironically, I've figured I was expecting to see it flew up, but gold is even down 1% and a lot of people are talking about Bitcoin, which goes into Daily Dan's question. And it was, hey, how's Bitcoin doing year to date? And a lot of people have been selling the idea of Bitcoin as being like a gold, something that's gonna, you know, be stable and everything. But remember, gold, still, love it or hate it, you can physically touch it, you can actually,

• 22:32Speaker 04

  you know, you can trade it, this kind of thing. But Bitcoin is, it's only backed by itself. There's no, there's nothing else. Our US dollar is fiat currency, it's backed by the US government.

• 22:42Speaker 03

  Right.

• 22:43Speaker 04

  But Bitcoin, it's only backed by its own blockchain, which makes a lot of investors a little sketchy. And we don't know what's gonna happen with the government.

• 22:51Speaker 03

  Yeah.

• 22:52Speaker 04

  I know things are taking place behind the scenes. It's not a secret that we are going to a digital currency as a government. I just haven't done any research on it lately.

• 23:00Speaker 03

  We just don't know how that's gonna play out. It's, it's, it's a pure speculation play. So, you know, some of these things that we're talking about, there's not necessarily recommendations to buy, sell, do whatever. It's just more so education to look at these different things. They're talked about a lot. The interesting thing is too, is some of these industries, even up till just not that long ago, we couldn't even talk about Bitcoin really with our clients because there was no publicly registered investment option for Bitcoin until some of the bigger players got in, into it not that long ago and allow you to speculate on the price of Bitcoin, even though you technically, you don't own the Bitcoin like in your own coin purse, you're speculating on the price of it. So you're trading it in like an ETF, where the more money that flows in, the more Bitcoin they're buying, obviously that does

• 23:45Speaker 03

  make Bitcoin go up. But if everybody chooses to sell that ETF, guess what happens? Cryptocurrency goes down, whatever, whatever one it is. So, uh, back to the gold and silver thing, I'll just end with this, you know, again, you should always have a little bit of your portfolio, especially as you get closer to retirement, maybe in something that would be considered inflation protected. Some of those companies might trade gold, move, transport gold, dig for gold or whatever, and different things that those types of investments historically don't do quite as good as like the S and P 500, but they tend to do okay in inflationary periods. Uh, and so a lot of times, some of our clients don't realize that they hold gold, but that's how they would do it. Gold typically tends to be A little more risk averse, long-term and stable.

• 24:28Speaker 03

  Silver has higher growth potential, but much more speculative. And if you're on the wrong end of that speculation, you can probably lose a little bit more value in a shorter period of time. So sometimes people will kind of go, hey, I want to hold a little bit of this stuff. So I'm going to hold 70% gold, 30% silver, or whatever they end up choosing to do. But again, it always goes back to, you have to have a plan. How much are you going to hold of each of them? When is going to be a point that you would sell it? When is going to be a point that you would buy more of it? You have to have a plan and don't just buy an investment like cryptocurrency or like gold or silver, just because you hear that everybody else is doing it. If you're going to choose to put your money into it, you better have a plan and an idea of what you're going to do in the good times,

• 25:09Speaker 03

  what you're going to do in the bad times, and what your goal is with that investment strategy.

• 25:14Speaker 04

  And you better know what you're buying. That's some of the best investment I got, investment advice I got early on was know what you're putting your money in. So often you'll hear a cousin's buddy say, hey, you need to invest in this company. You own such and such, it's going to be huge. And people run and they just start dumping money in it and they don't even know what it is. Always research the companies. You're better off historically having a well diversified portfolio. But even within that portfolio, you know, know, know what is in your funds. And that's why working with an advisor can help there as well.

• 25:44Speaker 03

  There you go. Yeah. So we're going to take a break here at the midway point. When we come back, we're going to have another great segment, talk about a few things. Stick around.

• 25:52Speaker 00

  Money Wise Wealth Management is the only locally owned independent firm that uses a comprehensive wealth, tax and estate approach, working closely with a highly trusted CPA and attorney. For information on how Money Wise can help you invest and plan for your future, call 661-847-1000.

• 26:17Speaker 04

  Wow.

• 26:20Speaker 04

  Feeling okay back there, buddy?

• 26:24Speaker 04

  Never.

• 26:25Speaker 03

  Why is it all smoky in your producer room, dude? No, who, this is called No Good, K-N-O-W-G-O-O-D. And I sent this over to Steven on the weekend because for a long time, our intro music to the Old Money Wise Show was the clinking coins.

• 26:41Speaker 04

  Yeah, yeah.

• 26:42Speaker 03

  From that song, the Pink Floyd. And, uh, and so I said, oh, old school. And somebody took it and remixed it and, uh, but, but, uh, no, no good.

• 26:51Speaker 04

  That's a homemade remix for you guys?

• 26:53Speaker 03

  Well, it's, it's a, it's a-

• 26:55Speaker 00

  The group is called No Good.

• 26:57Speaker 03

  Yep.

• 26:57Speaker 04

  Okay.

• 26:57Speaker 00

  And they do a lot of remixes and, uh-

• 27:00Speaker 03

  Yeah.

• 27:01Speaker 00

  It is probably smoky in their room.

• 27:02Speaker 03

  Yeah.

• 27:03Speaker 04

  I would say, I would certainly say.

• 27:05Speaker 03

  Yeah, I imagine their, their concerts are smoky filled rooms or wherever, but, uh, I mean, and, and, you know, full disclosure, I may not look like a guy that likes like dubstep or whatever, but I love it when somebody takes an old song and like remixes it like that and just kinda like puts a spin on it. And maybe some people say that they're, you know, create your own stuff, but-

• 27:25Speaker 00

  Yeah, sampling and I thought it was pretty cool, especially if you watch the, the video of them doing it.

• 27:30Speaker 03

  Yeah. Yeah, they do a lot of that stuff.

• 27:32Speaker 04

  Why'd you mention dubstep? Of all the electronic music?

• 27:37Speaker 04

  Cause you know, I listen to dubstep only when I work out.

• 27:39Speaker 03

  Really?

• 27:39Speaker 00

  Do you?

• 27:40Speaker 04

  Yeah, a hundred percent. I didn't know I did what it was. It was 2013. I had this, oh, what was this dude's name? Anyway, he came out to help us on a project with Halliburton, designing some bits or doing something. And he said, yeah, you ever listen to dubstep? I'm like, what are you talking about, dude? We listened to a little bit of techno in college, like Paul Oakenfeld and those guys. DJ Sasha, was it? Sasha and Digweed? Does anyone know who I'm talking about?

• 28:01Speaker 03

  No, I, you, you lost me, but the one thing about dubstep, so I have to, so I'll-

• 28:06Speaker 04

  I feel ashamed.

• 28:07Speaker 03

  I'll only, I'll only listen or only watch, so Key and Peele are hilarious.

• 28:11Speaker 00

  Yes.

• 28:11Speaker 03

  But very off color and, and a little bit out of my comfort zone. So I'll, you know, I, I, I try to be very cautious about what goes through my eyeballs and in my ears, just because personally, some of the stuff's too much. But have you seen their skit on dubstep?

• 28:26Speaker 04

  No. I have not. Check that out. Probably an off air check.

• 28:31Speaker 03

  It's that one's actually, that's what I mean to say, like some of their stuff that's not too dirty and not too bad and stuff. And the one about dubstep is hilarious, especially if you're somebody who likes dubstep. So there you go. Key and peel dubstep. If you.

• 28:42Speaker 00

  See, as a producer, you know, over the years, like I know each advisor likes certain types of music. So I try to mix it in when I can. So now.

• 28:50Speaker 03

  Oh, great. Now every time I'm on with Seth, it's gonna be a workout session.

• 28:54Speaker 04

  What it is. So, so the go to is Skrillex, but again, he can, you know.

• 28:59Speaker 00

  I've actually seen Skrillex live.

• 29:01Speaker 04

  Okay. Well, okay.

• 29:03Speaker 00

  I didn't know. I didn't sign up for it.

• 29:04Speaker 03

  Is he the one with the marshmallow head? Am I in the wrong genre here?

• 29:08Speaker 00

  That's marshmallow. That's marshmallow.

• 29:09Speaker 04

  I didn't know that was a, oh, okay.

• 29:10Speaker 00

  That's marshmallow.

• 29:11Speaker 04

  But you have to, you're gonna have to QC Skrillex, some of his lyrics, you know, I have to hit next or whatever. But he's got some jams, man. But yeah, look up Sasha and Digweed if we can get a little audio on some of their late 90s, early 2000s stuff.

• 29:23Speaker 03

  All right. So, you know, we.

• 29:25Speaker 04

  What percentage of listener lost did we just have in the last three minutes?

• 29:29Speaker 00

  I probably got four or five more.

• 29:30Speaker 03

  I think I could actually hear some dials moving. Real quick, real quick. You know, a lot of times we'll have local nonprofit charities and stuff come on and, and share their stories and stuff like that. And, and so we actually tried to work a few things out. We've had Casey Schalberger, Schob, Schob Schlegar, something like that. Director of Programs and Outreach has been on the show last time. And, and I am on the board of directors there with Wounded Heroes. Got involved, one of my friends who is a veteran himself, kind of yanked me on the board and got, got involved. And it had a little bit to do with, you know, some of the issues we've had in our family. Veteran suicide has impacted our family. My brother in law

• 30:13Speaker 03

  unfortunately made that decision. And it was one of those things where he didn't know any of the guys that were involved at Wounded Heroes or some of the local folks that are trying to pour into our local veterans, both freshly out of service and coming back and trying to find their way. And then even people later in life that still might have some issues going back to their times of service and, and experiences in the military. And so. It's an organization that I've been involved with, feel very passionate about. We are doing our fundraiser, our golf tournament tomorrow. So there's a couple of teams left, even if you want to just come out and be part of the opening ceremonies, say hello, meet, meet some of the folks. We will be at Sundale tomorrow. And so I was just going to bring it up because a lot of

• 30:58Speaker 03

  times we bring people on to talk about that stuff. And just to put the word out there, I myself am on the board. So I'm just going to represent Wounded Heroes right now. And, and you know, times have been tough for a lot of great charities here in town. You know, oil, ag, different pressure, economic realities. We were just talking about some of the different ways companies are cutting costs and trying to keep their profit margins big. Well, well, that, that spills down to charities and organizations that depend on the generosity of our community. And I will never discount the absolute generosity of our, of our community because when times have been great, they've been very generous. But it has definitely gotten more difficult for organizations to be as charitably inclined. And then even for individuals

• 31:41Speaker 03

  to open up the pocketbook. It's tough. So I really, really believe passionately about this. There's a lot of great organizations here in town. There's a lot of veteran alliance of different organizations. As a matter of fact, I'm passionate about Portrait of a Wounded, Portrait of a Warrior Gallery downtown. Travis's Information, his picture is, was pencil drawn by David Vanderpoel, and he's in the Hall of Remembrance. And if you don't know what that organization is, that is, I forget exactly how many, but anyone who died post Iraqi war from Kern County, has, has had a portrait made of them, a little bit about their childhood

• 32:26Speaker 03

  and kind of their family and some, some unique things to them. Portrait has been made of them and a, and a little rendition of their story, so that we can constantly honor them and remember them for the sacrifice they made.

• 32:40Speaker 04

  And Wounded Heroes does, is it, do they do education for veterans?

• 32:43Speaker 03

  So Wounded Heroes raises money and gives, you know,

• 32:49Speaker 03

  What's it called when you apply for a grant?

• 32:52Speaker 04

  Grant.

• 32:52Speaker 03

  You know, basically helping out people doing that. We also have, you know, like a computer lab, like if you need to apply for services and do those kinds of things. So we have that. Casey himself is finishing up becoming a therapist to be able to actually work with veterans who are struggling with PTSD or whatever else. And so here quickly, we're stepping up that level of service. And he's going to be working with some of those people who can come there and.

• 33:21Speaker 04

  If you're, if you're a veteran and these services could benefit you, what's the first step? Where, is there an office they show up at or website?

• 33:28Speaker 03

  Yeah, I'd go to Wounded Heroes Fund, go to our website. And then that is the cool thing. So there's a lot of great charities that they literally raise money and give away every penny. We do have a little bit of a budget because we do have a facility that we want the veterans to feel home at and to be able to know where they can go at any time if they need some services. So a lot of times they'll have folks show up and unfortunately, you know, veterans is a, is a tough group to serve because they are very capable, strong men and women. And, you know, asking for help and getting to that point where they feel like they need help or even taking that step can be a big, big burden to, or a barrier to cross. So as much as possible, just wanted to get the word out there. We're having the golf tournament at Sundell tomorrow.

• 34:10Speaker 03

  So if you want to stop by or if you still can throw together a team, even if you just wanted to go golf, we can mix match a team and there'll be some festivities at the end, a lunch at the end. And so, so if you can get involved, but just to, just to know that that service is out there. So if you do know a veteran that needs some, go ahead.

• 34:26Speaker 04

  They have family, three or four family focused activities a year, four date nights a year. I have a female veteran group as well, man. This is, this is awesome, man.

• 34:34Speaker 03

  Yeah, so Casey will take a, I forget what it's called, regiment ruck or something like that, where they'll, they'll kind of almost back to their service days. They'll all get together veterans and they'll go on a hike and camp out in the middle of nowhere, kind of back to those days of sleeping on the ground and everything else that they did. Whether that was the training portion of it or whether actually in combat, you know? And, and so they go out and kind of have that element, try to create that camaraderie. So there's some shooting things that you can participate in. There's a fishing one. I know one of the guys takes veterans fishing. And so, so yeah, just thanks for listening for a moment about that because I'm very passionate about it. So. Jumping back in, the thing I was gonna go into next was, uh, one of the things I wanted to ask you about a little bit,

• 35:16Speaker 03

  because I don't know what your experience has been with, with work-life balance. Uh, but, uh, Gen Z, uh, is slowly, basically surpassing the number of baby boomers that are in the workforce.

• 35:31Speaker 03

  So, uh, as the, as the baby boomers retire out and leave the workforce, Gen Z is, is taking over. And there's a, a kind of a growing trend, um, that they are participating in called micro-retirement.

• 35:48Speaker 03

  Micro-retirement. So, and again, I don't wanna bash on Gen Z, because there's some things that they're doing great, and they're actually beating, you know, some of the other groups of people.

• 35:57Speaker 04

  Am I turning into the bitter old man? Like, I just instant resentment, like?

• 36:00Speaker 03

  Seth literally just almost said, "Get off my lawn." I don't know why.

• 36:06Speaker 03

  But yeah, so, so, the, the, you know, I don't know how big of a concept it is, you know, I don't know, you know, sometimes you read these articles, but it is an interesting take on it, where they take intentional breaks. So if they are gonna switch jobs, or maybe look for a new job, they'll, they'll save up, possibly, or live off credit cards, possibly. I don't know what it looks like. But they'll take that time between jobs to travel, recharge, pursue passions, rather than waiting for traditional retirement. So I guess in their mind, they're thinking, "I'm gonna take breaks here and there between job moves, and maybe then if I work till I'm 65, it's not the end of the world, because I took a few trips here and there along the way."

• 36:45Speaker 04

  And it's, I guess it's actually catching, uh, the attention of some of the bigger corporations out there, because some might already be doing this, but they're offering it like a golden handcuffs type of, uh, incentive to keep employees around. Basically giving them, uh, uh, uh, "Hey, you wanna take a month off? But you have to earn it." And I don't know if they'd be paid or not, probably not.

• 37:06Speaker 03

  Yeah, probably unpaid.

• 37:07Speaker 04

  I could see that, man.

• 37:08Speaker 03

  But meaning we'll keep your job intact, your, your, your medical coverage doesn't expire.

• 37:12Speaker 04

  Instead of giving them restricted stock, or some of these more, uh, traditional, just give them time off.

• 37:17Speaker 03

  And what's funny, what's funny about that, though... Is in some circumstances that makes you feel better, but it might that stock that you could have gotten the company's like, sure, we'll give you 30 days off, no pay versus other employee or maybe ages that wanted stock.

• 37:35Speaker 04

  Yeah, I mean, Gen Z, they might not care. I don't mean to lump them all together, but that might, they might not.

• 37:39Speaker 03

  Yeah.

• 37:40Speaker 04

  They'd rather have the time.

• 37:41Speaker 03

  Yeah. The reason why I brought it up was just to kind of.

• 37:43Speaker 04

  Drink coffee and stuff.

• 37:44Speaker 03

  Yeah. The reason why I got it. I brought it up those like, it's funny how different people have different experiences and I've never been at a point where, I mean, I was the breadwinner for a long time. Jamie didn't work, you know, so we had to kind of make things happen. And, and if I'd been like, Hey, I'm going to switch careers, but I want to take a month long break before I go into the next one. Like, I mean, not to say we, I mean, maybe we could have done it, but it would have been on credit cards and it was still hard to make things work along the way. So I'm not discounting that fact because they talked about a little bit about focusing on mental health and work, life balance. And I believe in all that stuff because I think you can crash and burn. And, you know, so you got to be careful. But, but yeah, the shift contrasts with the great

• 38:29Speaker 03

  retire return where 13% of retirees plan to rejoin the workforce in 2025.

• 38:35Speaker 04

  Wow. We talk, I've talked to a few clients lately and they're, they're having to go pick up part-time jobs and.

• 38:40Speaker 03

  And so the funny thing about that is people that are willing to return to work is what we talk about all the time. There's so many people that are so focused on retirement or think that retirement is going to create some sort of mental health or create some sort of scenario where you're much, much happier and all that stuff. And what's interesting is you don't realize some of the positives of your work. Now I get it. Most employers right now are asking more of their employees, cutting certain positions and just putting more responsibility on those that are still around. And it is tough and you're also aging. You're getting closer to retirement and all those things. But I do tell people you have to have.

• 39:20Speaker 03

  You know, behaviors and uh um not congregations, but fellowship with people in some way, shape or form. And you have to start to find things that you're going to plan to do in retirement or else retirement may not be what you think it's going to be. It may have got rid of those uh six, seven, eight headaches uh that you had to deal with on a consistent basis in your job. But there's also a lot of other positives and things that you were getting that you really didn't understand or know. And you don't realize that till you retire. So you know, that's why I like, you know, I tell people sometimes right now, people are being forced out of their job. And so they're saying, hey, I'm going to go ahead and start using even some of my savings. They're retiring much younger than they thought. And they might even have the money to be able to make it if they live to be 95. Like maybe we can squeak that together.

• 40:05Speaker 03

  But my thought is, is like, you're young and you might end up finding another job, maybe not even making as much money. But you still might find something you can be passionate about or something. And I hate for you to have this major plan or to set up this. Cause there is a way that you can set up early withdrawals from a retirement account and not pay taxes. I'm sorry, not pay a penalty on it. You can avoid the penalty on.

• 40:27Speaker 04

  What's the age for that?

• 40:28Speaker 03

  Fifty nine and a half is where you can take money out of retirement accounts without.

• 40:31Speaker 04

  I mean, for the early.

• 40:32Speaker 03

  So you can go as early as you want, but you'd have to set up what's called a 72T.

• 40:36Speaker 04

  That's right.

• 40:36Speaker 03

  Which allows you to take systematic, regular distributions out of a retirement account prior to 59 and a half. You have to set that up and let it roll.

• 40:44Speaker 04

  You can't change it, right?

• 40:45Speaker 03

  You can change it one time within the strategy or the, the, the, the way that you set it up. Um, and it has to be at least five years. Uh, I'm sorry, it has to be until age 59 and a half or five years, whatever's, you know, more. So if you started at 54, you have to do it all the way to 59.

• 41:02Speaker 04

  Does it have to be monthly?

• 41:03Speaker 03

  Uh, actually, I don't know if it's got that restriction. The way that I've set it up for a few clients in the past has been monthly distributions. I think as long as it's systematic. So it's not, you can't just leave the money in there and pull it out when you want it or need it. And you also can't turn it off. So meaning if you end up a year into retirement, early retirement, even if you were kind of forced into it. And you say, you know what, I'm going to go back to work. You can't turn it off now.

• 41:28Speaker 00

  Yeah.

• 41:28Speaker 03

  And now, if you get back out there and work, you go back up into a higher tax bracket, and you have to keep pulling that money out of your retirement account. Now, maybe there's some ways you can work around it. But anyways, just one of those things where we've seen it where, you know, retirement is wonderful and definitely work for it, but also understand that, that, you know, maybe a little bit better work-life balance, working a little bit longer, it can actually alleviate some of that stress of having to save up all this money and then, you know, I'm not going to be happy until I break into retirement. If you can find a easier transition, much, much better for you. We're going to take a break real quick. We'll be right back.

• 42:01Speaker 00

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

• 42:13Speaker 04

  Yes.

• 42:17Speaker 04

  No, I gotta send you some other stuff, Stephen. No.

• 42:20Speaker 03

  So everybody's going to be like, alright.

• 42:21Speaker 00

  This is Sasha in Digweed, so.

• 42:23Speaker 04

  Okay, so this is, this is the old school stuff and sitting in the dorm room studying for a final, 2:00 in the morning.

• 42:30Speaker 04

  Okay, it's coming back to me.

• 42:33Speaker 03

  Well, there you go. I did want to show, throw out this. We had a listener throw this out, kind of sharing some personal success and kudos to the Money Wise show. So I'm going to, I'm going to read it out. Advisor, advisor, advisor. "I'm blessed to be with fidelity and lock in two CDs last May, one matured in January, 100K, 5.5%. Second one matured in October. This year, 125K, 5.1. These lump sums are nearly supplement, not including my social security check. I'm retired. I continue to keep my 401K working through company, and you are correct. Do not panic. In the last 10 years, my nest egg has doubled 2.5 mil. So keep up the good work, Money Wise."

• 43:16Speaker 03

  And I just, you know, like, you know, it's, it's, obviously, you've been paying attention to your plan and have a good perspective then. And I understand why a lot of people freak out because a lot of people are busy, maybe not as interested in finances and different things. And then when you finally do look, which this is what happens, the one time that people... Finally pay attention is what after a day like this?

• 43:37Speaker 04

  Yep.

• 43:37Speaker 03

  So that creates this thought in your mind that this is the only thing that happens in the stock market is that every time I look at it, it's down. Well, that's because a lot of times that's the only time that it can motivates anybody to finally log into their account and look at things. So I do want to just throw that out there. Hey, kudos to you and your success. I wish you nothing but the best and keep doing your plan. And the one thing I want to take away from that too, is the bad part of some of the market volatility is right now, for the last two years, we've been in a much better interest rate environment for savers. For the last decade, we were in ultra low interest rate environments. We love getting those 30 year mortgage rates where they were at. Well, for investors and savers and people with wealth, he was locking in 5% CDs.

• 44:21Speaker 03

  So those are not subject to the markets. So again, when we're talking about not being quite so aggressive or looking for some other alternatives or fixed alternatives, those rates are still higher and attractive, um, you know, for certain situations. So those types of things are available for cash equivalent funds and different things.

• 44:38Speaker 04

  You talked earlier about the wake up call a day like this, a lot, you know, kind of forces some people to wake up and oh my gosh, I gotta look at my stuff. But did you know it's proven people spend more time planning their vacations every year than their own financial planning?

• 44:52Speaker 03

  Yeah.

• 44:53Speaker 04

  That's not good.

• 44:53Speaker 03

  Yeah.

• 44:54Speaker 04

  As a country, as a people group, that's not a good thing.

• 44:56Speaker 03

  And so sometimes people think, well, I need to open up my account and look at all time and stress. And that's not what it is either, because I love what one guy said where investments are like soap. The more you touch them, the smaller they get. So it's not about trying to day trade the market or getting worried and doing all that stuff, but.

• 45:12Speaker 04

  If anything, it's a monthly budget and visit it with your spouse, uh, at least once a month, preferably twice. And then have an annual review with an advisor to look at your investments once a year.

• 45:22Speaker 03

  And one more follow-up item, we talked about gold and silver today. And one thing that you actually have to worry about if you are investing in those things, especially if you're the one that likes to buy them and set them in your safe or take them to your house, that sometimes the stock market really can't have this happen if you're in a good account. But gold and silver can get stolen.

• 45:42Speaker 04

  It can get stolen.

• 45:43Speaker 03

  And literally, yep, we've literally heard a story here.

• 45:46Speaker 04

  The story just this past week, $60,000 worth of gold and cash, just cold hard cash sitting in drawers. It can get stolen, it got robbed, wiped out.

• 45:56Speaker 03

  A handful of times. So yes, the stock market has its risk and it has some, some ups and downs that you have to learn to navigate through and it's challenging. But I've heard stories enough to that, to have to throw that out there, that if you are going to hold a bunch of cash and gold and silver in a safe or wherever, it can also disappear. If you can touch it, so can robbers. Yeah. So anyways, you know.

• 46:16Speaker 04

  Thank you guys for the comments. That was great. Keep them coming.

• 46:19Speaker 03

  Yeah. Hopefully we're, uh, we're helping you all be money wise out there. We, we are no better than all you listeners out there. Continue to tune in, share, like, and, uh, keep sending the messages. Be smart, be safe, be money wise.

• 46:33Speaker 02

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