Pod Insights The Moneywise Guys 5/21/25 Proof of Funds, Unfilled Jobs, and Degree Dollars About this episode The Moneywise Radio Show and Podcast Wednesday, May 21st 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
Transcript 0:00 Speaker 00 From the Garo Ellis padded radio room off Stockdale Highway, here is Money Wise. Call or text into the show 24/7 at 396-1000.
0:39 Speaker 00 Here is Money Wise. Money, money, money, money.
0:43 Speaker 01 Welcome to the Money Wise Show.
0:46 Speaker 02 Garo.
0:47 Speaker 01 We are live from the Garo Ellis padded radio room off Stockdale Highway on ESPN Bakersfield, 1230 AM, 101.1 FM, and always streaming at MoneyWiseGuys.com. You can call or text into the show 24 hours a day at 661-396-1000. Today with your hosts, I'm Sharad Wade and...
1:03 Speaker 02 Debbie Lewis.
1:04 Speaker 01 Hey Debbie.
1:05 Speaker 02 Hi Sharad.
1:06 Speaker 01 Is it your first time hearing that, the new intro?
1:08 Speaker 02 Uh, no, I actually, the last time I was on the show with Sammy, I had the honor of reading, doing it.
1:15 Speaker 01 Oh, that's right, you got the, you brought it in.
1:17 Speaker 02 I did.
1:17 Speaker 01 So you heard the little Garo giggle.
1:19 Speaker 02 Oh, that part, the fun part. Yo, that was my first time hearing that, so sweet.
1:25 Speaker 01 It's really cool.
1:25 Speaker 02 Steven, you're so good.
1:26 Speaker 01 Yeah, he's got it, he's got it dialed in, that's for sure.
1:28 Speaker 00 It's all Garo.
1:29 Speaker 01 Yeah, that's true.
1:30 Speaker 00 You know what was difficult was pulling hundreds of Garo clips and trying to find one that, you know, that we could use.
1:39 Speaker 01 Yeah.
1:39 Speaker 00 Cause there's so many of them, I mean, I could go down the line, there's the sayings, there's the songs and...
1:45 Speaker 02 Little, little...
1:46 Speaker 01 Yeah, his baby voice.
1:50 Speaker 00 I mean, there was the Elvis ones, there was, I mean, there's hundreds of them.
1:54 Speaker 01 Yeah, so many, he was so good at it, so good. That's why we named the padded radio room after him. All right, well, let's get right to it. Debbie, we've got a couple of listener questions, and again, if you're listening and want to participate, now's a great time. Actually, you can do it anytime, 24 hours a day, send us a message. 661-396-1000. Let's get right to it, Debbie.
2:13 Speaker 02 Okay, so the first one that we received. What type of verification do you need of the original purchase of a home? In what types of situations do you need this proof? What proof of a refinance of the same home? If you no longer have the proof of the original purchase, where do you obtain this information on a paid off home? Such as a title company or a mortgage company?
2:38 Speaker 01 Good question. I'm guessing-
2:40 Speaker 02 There's a lot to unpack there.
2:41 Speaker 01 Yeah, so I'll kind of summarize. The way that I understand it is how do you, how do you find the information from the original purchase? Like where's the, where do you find your receipt?
2:52 Speaker 02 Right.
2:53 Speaker 01 You know, where it shows what you paid for it? And you know, what day, what year it was and all that stuff. I'm guessing from the nature of the message, something was maybe come up. Because there are situations where you'd, you'd need to go back and go, yeah, what did I pay for this house? Meaning, what is, what is your cost basis? What's your tax basis on the home? This may have come up because yesterday we had Al Maderos on the show and we were talking about the, if you're over 55 in the state of California, you can transfer that cost basis, that tax basis to a new home.
3:30 Speaker 01 You know, anywhere in the state. Before you kind of had to keep it within, within your county or within certain counties. But for somebody who's just selling one home and buying a home of equal value, oftentimes they're paying a lot more in property tax, right? Because you pay the property tax on what you paid for it. And that means unless you can, you're over 55 and you can move that basis over, then you can, you can preserve that tax basis on the home of your original home that you bought. So it helps free up people that need to downsize, for example, or they need to, you know, just move to a different home. Then it allows them to not just get killed in property taxes.
4:10 Speaker 02 So why did they kind of rework that?
4:14 Speaker 01 But I think for that reason, because they were finding it was just a burden on a lot of seniors to not be able to just move because you become trapped if you get, you know, you're paying, you're used to paying 1% or, you know, whatever, just over 1% for property tax, but you're paying it on what you bought the home for. So you may have bought the home in the 90s, so you paid $100,000 for that home that's worth now $500,000. And so your property taxes are, you know, less than, less than $1,000, right? $1,000 a year. And now they would go up to $5,000 a year?
4:51 Speaker 02 Yeah.
4:52 Speaker 01 You know, that's just a lot. That can, that can hurt, you know, cause a lot of, of problems. So I think that's, that's one of the main issues. It was, it's a great rule, it's a great law, but this might be the situation where somebody would have to find that documentation that says, "Oh yeah, what, what did I pay? You know, what did I pay?" So there's a couple of sources that you can find this information at. And you were right, listener, you can, you always contact the title company or the mortgage company, even if you still have the information for the agent that was involved in it. They might also have copies, but title companies will generally keep copies of all of their transactions. And that's, that is the most likely place that you can find it.
5:36 Speaker 01 Of course, if you have a mortgage company, well, this sounds like this is paid off. Otherwise, you could go to the mortgage company as well, or the servicer that is sending you the bills for your mortgage. They oftentimes will have documentation of, of the purchase of the home and, and all of that. And then there's a, they're closing documents or a HUD1 settlement statement. These are the detailed financial transactions that took place at the purchase. So again, this is something that the title company should have. If you're looking for just proof of ownership, that's a little easier because that's on your deed or your title. And that you can get at the, at the recorder's office.
6:14 Speaker 02 Okay.
6:15 Speaker 01 You know, in, in every county, you know, or wherever the house is. You can request that and, and get that proof.
6:20 Speaker 02 But the deed does not have the price.
6:23 Speaker 01 No.
6:23 Speaker 02 Just literally says, this is your property.
6:26 Speaker 01 Yes.
6:27 Speaker 02 These are your property lines.
6:28 Speaker 01 Yes, and here's the owner. This is the owner of it, and this is the property. Yeah, exactly. There's a lot of information now that is online, and if, you know, right around 2015, we started to see a lot more of the digital like e-signature stuff, DocuSign. So you might find some of those documents if you did that, you know, search your email.
6:51 Speaker 02 That's a good point. When was this completed?
6:54 Speaker 01 Yeah.
6:55 Speaker 02 I document everything in email.
6:57 Speaker 01 Yeah, I do too. Especially, especially, I use Google, you know, for my personal, used to be for work, and it's so great for the search. It's so much better than Microsoft.
7:07 Speaker 02 I have a lot of email Post-its to myself.
7:10 Speaker 01 Yes, I do too. I do too. It's very handy.
7:13 Speaker 02 Yeah.
7:14 Speaker 01 It's very, very handy, so.
7:15 Speaker 00 I do the same thing with my, with my sports show. Throughout the day, I'll email, email myself, so at the end of the day, I could just gather around here and there and there.
7:24 Speaker 01 Yeah.
7:25 Speaker 00 I liked Google.
7:26 Speaker 01 I did too.
7:29 Speaker 01 I know, I know.
7:30 Speaker 02 We're referencing a internal work thing with our office. We, we switch from Gmail, Google to Outlook.
7:38 Speaker 01 Yes, and not happy. There's a few, there's a few of us in the office that have, are used to Outlook, you know, they're used to the, to the Microsoft ecosystem. I could never get used to it. It's fine in terms of, it's just different where the buttons are aesthetically. The problem is, the search is so terrible. You know, you're trying to find some email from a year and a half ago. Good luck.
8:00 Speaker 02 It's not intuitive.
8:01 Speaker 01 It's not intuitive. It's just, Microsoft, Google just owns still on the planet. They own the search technology. Nobody can, you know, figure out search quite as well as Google, except for now the AI. The chatbots are amazing.
8:16 Speaker 02 Well, you just proved that to me. We were. Trying to talk about a news article that was not easily coming up.
8:23 Speaker 01 Yeah.
8:24 Speaker 02 I had no idea that you could ask ChatGPT to pull up a firewall article.
8:29 Speaker 01 Yeah, all of these large language model chatbots are, are, most of them have access to the internet now. So it's just like a, it's like Google on steroids.
8:38 Speaker 00 Really?
8:39 Speaker 01 No ads. Yeah, it's so nice. It's so nice.
8:42 Speaker 00 So I don't have to copy a story or anything?
8:44 Speaker 01 No.
8:45 Speaker 00 I can just ask it?
8:46 Speaker 01 Yeah, you can just ask it, you know, put in, in this case, I put in the title. Cause today we were going to talk about a Business Insider article, which a lot of these have paywalls too.
8:55 Speaker 02 Right.
8:55 Speaker 01 So I, I don't know how long this is going to last before, you know, these companies go, how come ChatGPT gets around the paywall? But, you know, it pulls it up. It, it pulls it from a different source, I guess, a free source and it, you know, summarizes it. So it's really cool. All right. We've got another question here. Debbie, you want to get to that?
9:14 Speaker 02 Yeah, this listener says, I have a family member with a complicated financial situation. Divorce, various pensions and retirement accounts, retirement accounts, et cetera. I'm looking for someone who can review her finances and help us understand what she can expect as she reaches retirement. Is that a service that you provide at Money Wise? Thank you very much.
9:37 Speaker 01 Thank you. Yes, that is definitely a service that we provide here at Money Wise. And there's a few things in our business that I feel like are future-proofing us a little bit. You know, I don't feel like the robots are going to quite get there yet. And one of the services that we offer is just what this listener is asking about. You have a family member or a loved one, somebody that you're close to. Oftentimes there is a decline in health that makes it complicated or makes them unsure to make some of these decisions on their own. And so you've got to get involved and that is a very difficult. Situation to be in, it can be incredibly stressful for the caregiver and for the parent
10:22 Speaker 01 or the family member, the loved one, because nobody wants to be put in that position. Nobody wants to be a burden and then it can be stressful for us to make our own financial decisions and now we're taking on the responsibility for our loved one. And so what can help in that situation is working with a good qualified financial advisor. Oftentimes what happens is you either go to their financial advisor, you go to their CPA, who also usually knows a lot about their financial situation and that can, they can help walk you through on what needs to happen. But certainly, you know, reach out, you can reach out to MoneyWise, 847-1000 is our office
11:05 Speaker 01 number and whoever answers the phone can walk through and make sure that they connect you with an advisor that, you know, will fit your situation. But this is something that I feel very proud of what we do at MoneyWise, is helping people navigate through, you know, these tough transitions, life transitions, dealing with an aging spouse or aging parent and just sort of being that representative and that liaison with the family, I think is a valuable resource.
11:40 Speaker 02 Right, and it's like filling in those nuanced gaps, like navigating the emotional side of these hard conversations or complex overwhelming situations, but then our financial advisors and a good financial advisor, no matter where it is, or a certified financial planner, uses actual tools to take the data that you give to them to show you a plan and show you what that, like the technical side of the emotional conversation is and being able to help somebody map out their, as we say, their roadmap to retirement.
12:17 Speaker 01 Yes. We talk about a few documents on Money Wise that everybody should have. And those documents allow you to be able to help somebody else because you're going to be limited in how you can help a loved one unless you have some of these documents like a power of attorney or a trust.
12:37 Speaker 02 Right.
12:38 Speaker 01 And part of a trust, like the trust usually entails powers of attorney that give authorization to sort of make transactions and financial transactions.
12:49 Speaker 02 And for health.
12:50 Speaker 01 And for health, yeah.
12:51 Speaker 02 Care directives and financial directives.
12:53 Speaker 01 Both are incredibly important because if you don't have those, then you could find your hands completely tied. And if you don't have those, the proper estate planning documents, now you have to go through a conservatorship. Usually that's one of the alternatives, which is, I've never had to do it personally, but I've known people who've had to go through the courts and file for a conservatorship, which means you've got to prove to the judge and go through the whole process about this person being capacitated and that you're qualified to take over and why you're qualified and you've got to pay the attorney and it's very expensive and it takes a long time. And so if you have a power of attorney, you have your trust documents, then those are incredibly important.
13:36 Speaker 01 The other thing that we do here at Money Wise, I don't know, I'm guessing it's industry-wide, but we have a, what do we call it? It just escaped my mind, but it's the, like the contact, the person that we can contact in the event that...
13:52 Speaker 02 Trusted contact.
13:53 Speaker 01 Trusted contact. That's it. So it's essentially, they don't have power of attorney. It's not like they can do anything in the account, but we can call that person in case we can't get ahold of our client, you know? And, you know, maybe they're in the hospital or they're, you know, they were in a car wreck or they're gone somewhere and we need to get ahold of that client. Well, if we can't get ahold of them, we need a trusted contact. So we try to get all that information from our clients so that if something happens in an emergency, you know, we just know who we can, who we can talk to, who we can reach out to. So those are good, good questions, great comments. Keep them coming our way, 661-396-1000. We're going to take a quick break and we'll be right back.
14:30 Speaker 00 Have you been putting off your finances? Seize the day. Call the Money Wise office at 661-847-1000 or email [email protected] for more information on how our financial advisors can help your financial situation.
14:50 Speaker 01 Happy birthday notorious V I G.
14:54 Speaker 02 R I P.
14:55 Speaker 01 R I P. He died in 97.
14:59 Speaker 02 Wow.
15:00 Speaker 01 Right? Coming up on 20 years.
15:03 Speaker 01 Getting old.
15:06 Speaker 01 Yeah.
15:06 Speaker 00 He'd been what 53, 54 today?
15:09 Speaker 01 He would have been 53. Yeah.
15:13 Speaker 00 Still one of my favorites though.
15:14 Speaker 01 Yeah, yeah, that's why he's notorious.
15:16 Speaker 00 Any chance I could play B on this show? I'd jump on it.
15:20 Speaker 02 There aren't a lot.
15:21 Speaker 01 Yeah, we got to play Busta Rhymes yesterday.
15:24 Speaker 00 Yeah, I played Busta yesterday.
15:25 Speaker 02 Oh, really?
15:25 Speaker 01 Yeah.
15:26 Speaker 02 What inspired that?
15:27 Speaker 01 He's still putting out good stuff.
15:28 Speaker 00 It's his birthday.
15:29 Speaker 02 I was wanting you to say Alan Maderos loves Busta.
15:34 Speaker 00 He looked at me crazy when I played it too.
15:36 Speaker 01 What is this? Welcome back to the Money Wise Show. I'm Sharad Waite here with Debbie Lewis. Debbie?
15:42 Speaker 02 Hi, Sharad.
15:43 Speaker 01 So the markets today did a little weird thing. It was pretty much up for most of the day and the final hour or two of trading, it just tanked and it correlated exactly with the Treasury Auction, which is the US Treasury auctions off its, its bonds every so often and this time they were auctioning off millions and millions of dollars worth 20 year Treasury bonds.
16:10 Speaker 02 Does that make it bad?
16:12 Speaker 01 Yeah.
16:13 Speaker 02 These bonds like kind of the clearance bin? That's what I think of when I hear they're auctioning off things, that nobody wants them.
16:20 Speaker 01 That's right. That's what's kind of scary because generally you have a high demand for these or a better demand than what we had today because bonds, government bonds, federal Treasuries are backed by the full faith and credit of the US government and the US taxpayer. So if the government can't pay the interest on those bonds, they have the ability to tax their citizens to be able to make those payments for their bondholders. We've never defaulted. The country's never defaulted on the bond, on a bond. However, there's been the downgrade, a credit downgrade. downgrade that happened over the weekend. So all three major credit agencies have downgraded
17:02 Speaker 01 the debt, the US debt to from the best rating to just one notch down. And some of the concerns are what is happening in Washington and this, this is, this is not uncommon for markets to get a little jittery around this time of year when Congress is trying to iron out their spending bill. Or, or new tax bills. And this is a big tax bill that is changing. It was first enacted in 2017 under the first President Trump's first term. And it's going to expire at the end of this year unless Congress can update it. And they, they're going to have to update it because there's some things that would sunset after this year that would be just devastating, like the estate tax.
17:44 Speaker 01 There's the, the tax rates themselves would go back up to, to high levels. It would be catastrophic. So that has forced Congress. And right now the House of Representatives are working on coming together and, and coming up with a, a bill. That is going to, you know, further extend some of these tax cuts. Tax cuts are great for consumers. And they're, they're, they're good for the country, except they're not good in terms of bringing in money to the government to pay its bills.
18:18 Speaker 02 So then where do they get their money?
18:20 Speaker 01 Right. And they, they, what they do is they issue bonds and they auction them off and they sell them to the public and that raises money. They essentially can do that unlimited and they've done that pretty much every year to fill in the gap of their budget. Cause their budget is, you know, a trillion dollars more than what they bring in revenues.
18:42 Speaker 02 Okay.
18:42 Speaker 01 Every year. And so the, to fill that gap, they borrow it. And how did the, how does the government borrow? Well, they issue bonds and treasuries and then people all around the world, mostly US, but Institutions buy these bonds and so that's what's kind of interesting about today's move is that it, you know, it could be that this is a statement from investors saying, hey, you know, we, we need, we're demanding a higher interest rate if we're going to buy that bond. And we also have some concerns about the government's increasing debt and that the burden that that is going to become, that that can become on the government and their
19:22 Speaker 01 ability to, to pay the bonds back. So it's kind of, it's kind of unsettling and that's why we saw S and P 500, for example, down over one and a half percent. The Dow is down almost 2%. The Dow is, you know, again, it's dumb. It's a dumb index in part the heaviest.
19:41 Speaker 02 Always makes me laugh.
19:42 Speaker 01 I know.
19:43 Speaker 02 It's so dumb.
19:44 Speaker 01 Used to play, uh, you used to have a little sound bit for the dumb Dow.
19:48 Speaker 00 We did.
19:49 Speaker 01 We, it, it got, uh, nixed.
19:51 Speaker 00 Uh, I just don't want to overdo it. We also do like silver and
19:56 Speaker 02 Do do do.
19:57 Speaker 00 Gold and, uh, used to do a taking a dump segment.
20:01 Speaker 01 Oh, yeah. Taking a dump segment.
20:04 Speaker 00 No, I'm just, uh, it got old.
20:07 Speaker 01 Yeah.
20:08 Speaker 00 It was just like.
20:09 Speaker 01 It was funny like the first 10 times. The, the Dow though, I was going to say, one of the reasons it's dumb is because it has, it's all, uh, stock like price weighted, meaning the, the stocks that are in the Dow, the 30 companies, it's all based off of the value of their, of their share price, not on, in comparison to the size of the company. So you can have a member of the Dow, for example, United Healthcare is one.
20:38 Speaker 02 They're not doing so great.
20:39 Speaker 01 They're not doing good. Did you hear what?
20:41 Speaker 02 Some major fraud.
20:42 Speaker 01 Yes.
20:42 Speaker 02 Stuff.
20:43 Speaker 01 I don't know if it's fraudulent, but it like just came out yesterday or today where United Healthcare was paying to their nursing homes to not take their patients to the hospital. Basically like in, bonusing, incentivizing the nursing homes to not take their patients to save money. And it did. It saved a million. And millions of dollars, but it also probably
21:07 Speaker 02 So upsetting. I've had a rough day around the medical system. I'm feeling pretty, pretty down and negative about our whole setup in this country.
21:18 Speaker 00 Oh, yes.
21:18 Speaker 01 It's
21:18 Speaker 02 It's so depressing.
21:20 Speaker 00 Yeah, I immediately thought of Ben Stiller and Happy Gilmore. Talking about his, Adam Sandler's grandma when he, he took her to the nursing home and he was so mean to her.
21:32 Speaker 01 Oh, no.
21:32 Speaker 00 Do you remember that?
21:33 Speaker 01 This isn't real life or, or is this a movie?
21:35 Speaker 00 It was the movie. It was Happy Gilmore.
21:37 Speaker 01 Oh, gotcha.
21:38 Speaker 00 When Ben Stiller.
21:39 Speaker 02 But that happens.
21:39 Speaker 00 Oh, yeah. It was very true.
21:41 Speaker 01 Yeah.
21:42 Speaker 00 It was just a, a part of a movie.
21:43 Speaker 01 Oh, yeah. Gotcha. Yeah. Well, that's, uh, United Health Group today, at least.
21:47 Speaker 00 And now I feel
21:51 Speaker 00 Yeah, I have it. It's just.
21:53 Speaker 01 Yeah. Yeah. So, you know, um, you know, that's, we're just gonna, you just gotta hang in there. There's still, the good news is there's still a lot of great companies that produce a great product or a great service and a good value that people around the world are still buying. And so I, I'm, I'm, I'm optimistic, you know, long-term, short-term, you can't, things can't go, keep going up. This is, we had a six-day winning streak in the markets and that can't just go on forever. It's gotta have some release valve at some point. And, uh, and so there it is.
22:28 Speaker 02 Is, we have an auction, an auction question. Is there an actual place that people go to for this? Or is this, you hire your stockbroker to dial in on a platform, you know, during designate, like what, what does that actually look like? Have you ever participated?
22:47 Speaker 01 I've never participated in an auction and I'll have to, I'll do, I'll do a little research over the break, but my understanding is for institutionals, institutions and banks, basically. You have to have
23:01 Speaker 01 You can buy directly from the Treasury, US Treasury Direct, online. And this is, and the auctions are usually online. They're digital. I don't, that'd be funny if it was like old school, like hold up your paddle number and, "I'll take 10 billion of 20-year Treasuries, please." Sold!
23:18 Speaker 01 But it's usually institutions that have the access to those. And I, I'll do some research, I'll find out, but that's, that's a good question. All right, we're going to take another break. If you've got any questions or comments, send them our way, 661-396-1000. We'll be right back after this.
23:36 Speaker 00 Money Wise Wealth Management is the only locally owned, independent firm that uses a comprehensive wealth, tax, and estate approach. Working closely with a highly trusted CPA and attorney. For information on how Money Wise can help you invest and plan for your future, call 661-847-1000.
24:01 Speaker 01 Welcome back to Money Wise.
24:04 Speaker 02 Little Morrissey?
24:06 Speaker 01 Oh, I'm supposed to hear her talk about Morrissey?
24:09 Speaker 02 He's always listening.
24:10 Speaker 01 Oh, my gosh.
24:11 Speaker 00 No, actually, I had this one ready because she went and saw Morrissey, so.
24:14 Speaker 01 That's what I heard at the Fox.
24:17 Speaker 02 That was an amazing show. But I do think I did some permanent ear damage.
24:24 Speaker 01 Ear damage, right, oh.
24:25 Speaker 02 My hearing has been a little off ever since, but dang, it was a good show.
24:30 Speaker 01 Yeah, that's good. I'm glad it was good. I was, I was a big Morrissey fan in high school.
24:33 Speaker 00 I have this album that it reminds me because it had the Tommy Gunn in the, the front. But, um, yeah, I actually heard over the weekend, I was going to share that with Debbie, as you're, uh, you're actually, it's a good thing and it'll actually extend your life going to live concerts.
24:50 Speaker 01 Yeah.
24:50 Speaker 00 That's what they've said.
24:51 Speaker 02 That I can't hear?
24:53 Speaker 00 Yeah, I mean, I, I grew up in, in recording studios and blew out my ears all the time, so you don't need those.
25:01 Speaker 01 They'll grow back.
25:04 Speaker 01 Debbie, you asked about the Treasury auctions.
25:06 Speaker 02 Yeah.
25:07 Speaker 01 So there are, as I mentioned, there's a couple of ways that individuals or retail investors can participate in Treasury auctions, the treasurydirect.gov, I think I mentioned that website. Those are non-competitive bids, so there's no commissions or fees, it's pretty straightforward. The auctions that we're talking about are more competitive auctions. These are through the Federal Reserve's commercial book entry system. So these are for institutional investors like pension funds, mutual funds, insurance companies. They participate via competitive bids through dealers. So there's dealers that participate in that. So if you want to submit, you can, most people can just buy direct. And this was real popular
25:52 Speaker 01 during COVID because the inflation-protected securities were like really paying really well. And so you're limited to how much you can buy, you know, just individually, but you could go directly through the treasury.gov and take care of that.
26:07 Speaker 02 I just want to picture people in like athleisure wear on a weekend going, "Ah, I can't go to lunch, I gotta go to the bond auction house."
26:15 Speaker 01 Right. Sounds fun, Dad.
26:20 Speaker 01 Got a listener question, Debbie?
26:22 Speaker 02 Yeah. "Why aren't more Americans taking factory jobs that are already available? And how could that make it harder to bring back more manufacturing to the US?"
26:33 Speaker 01 So we talked about this, I believe, last week, the fact that we are, we lack so many workers in lots of different industries, including manufacturing. There are, there's a shortage of nearly 500,000 jobs or people, workers.
26:54 Speaker 01 In the manufacturing business, that means there are 500,000 open jobs right now that cannot be filled. And it's one of the top concerns for manufacturers is their ability to be able to find enough people that can take the jobs.
27:08 Speaker 02 Right.
27:08 Speaker 01 And there's
27:09 Speaker 02 They're also saying the majority of manufacturer, manufacturing workers at this point lean older. And I was trying to find kind of an average age, but then there's a huge retirement wave coming. So then we're going to be setback even more in the manufacturing industry. And they're projecting we'll need 3.8 million additional workers by 2033.
27:35 Speaker 01 Yeah, that's, that's a little scary. Certainly it's a challenge. There's going to be a continued demand that even going five years is going to increase. It's going to, it sounds like it's going to triple
27:47 Speaker 02 Right.
27:47 Speaker 01 The number of jobs that will be, need to be filled. And you have not just the demographics of the people within the, the manufacturing business, but just in general, we have an aging population.
28:00 Speaker 02 Right.
28:01 Speaker 01 And there is a perception with manufacturing that manufacturing positions are physically demanding or hazardous. And that can make it certainly unattractive, you know, for, for applicants. However, that perception and, and, and is, is shifting and the culture is shifting because so much is changing to automation and robots. And so you have people now that aren't just picking up one piece of the assembly line and moving it to another.
28:33 Speaker 02 Oh, no, you have development, you have the engineers, you have design, finance, sales, marketing, just like any other business.
28:41 Speaker 01 Yeah.
28:42 Speaker 02 It doesn't just employ people that are making things with their hands.
28:47 Speaker 01 Right. And they're, they're very technical now because they're, they're fixing robots or they're fixing, you know, artificial intelligence. So they're, they're programmers and they're, they're technicians.
28:58 Speaker 02 Which I think locally in Kern County, all of the amazing work that's
29:04 Speaker 02 Being done here and you know Kern Economic Development Corporation and the county working to attract companies to bring manufacturing to Bakersfield and with the local partnerships with CTEC and ROC, building the youth and giving them a track to get this type of training before they enter the workforce, I think is, I think we're kind of trailblazing regionally in that industry with oil disappearing. So what are the industries that are going to be able to fill that, that gap, that void?
29:39 Speaker 01 Right.
29:40 Speaker 02 Logistics, engineering, robotics.
29:43 Speaker 01 Warehousing.
29:44 Speaker 02 Yeah.
29:45 Speaker 01 It is a major obstacle for the United States. Like in theory, it sounds great that we can onshore manufacturing, but when we don't have enough people to fill those positions, then it just, it makes it even more difficult for, for manufacturers to do that. Now, what's interesting though is we have the loss of the demographics or the people to fill those jobs, but on the other side, we have an increase in automation and robotics that are taking over. So let me give you some numbers, for example, that between 2017 and 2023, 49%
30:28 Speaker 01 increase in automation, manufacturing and automation. And by 2030, 20 to 25% of manufacturing hours could be done by robots or automated systems, reducing the need for human labor, especially in like predictable tasks or repetitive tasks. The World Economic Forum predicts that 14 million net job losses globally across all industries over five years with manufacturing among the most impacted sectors. 44% of, of workers' skills will be disrupted in the next five years due to automation. Six in 10 companies expect automation to reduce
31:14 Speaker 01 Use their workforce. So you have like these two, these two competing forces and a changing demographic, a lack of people to fill those jobs and then a rapid increase in automation and robots to fill those jobs. They don't go perfectly and it's not, it depends on obviously what country you're in.
31:37 Speaker 02 Right.
31:38 Speaker 01 In undeveloped countries where they have cheaper labor, well, it's going to take them longer to get the robots in there. But here in America, even if the robot is super expensive, it still might make sense because it's just cheaper than a human, than the, an American to fill the job. So.
31:54 Speaker 02 It is fascinating because our government for a few years now has been investing a lot of money into manufacturing, trying to bring the jobs back to America, but it doesn't, I'm curious. I have not done a lot of research on, is that $2 trillion, you know, during the Biden administration that went towards manufacturing, is that for all aspects?
32:19 Speaker 01 Right. Yeah.
32:20 Speaker 02 The future of manufacturing or where we are currently?
32:23 Speaker 01 And there's certain sectors that, there's certain sectors that were, I know with the Biden administration, with the Inflation Reduction Act, which was, you know, trillions of dollars that was, that was spent on lots of things. But one of them was to bring to the United States or, or protect the manufacturing of sensitive technologies like computer chips and certain electronics and technologies that were like, we don't want to lose those here. And we found that during COVID when there was disruptions in the supply chain and all of a sudden like we didn't have anything and we were relying on other countries to be able to like fly our planes and build cars and that kind of stuff.
33:03 Speaker 02 Right.
33:04 Speaker 01 So it's, it's just an interesting time. It's just such an interesting time. I think that there's certainly opportunity for somebody to get into manufacturing. I mentioned that there are apprenticeship programs last week on the show where.
33:18 Speaker 01 Big manufacturers will often sponsor and pay for you to, you know, work in apprenticeship where you can learn how, some aspect of manufacturing. And once you get your certification and you finish your hours, then you can go full-time. And within five years, you're making six figures, which is, you know, great. You can, a lot of these jobs, I think that's what people don't realize is, the entry level, you gotta look beyond the entry level aspect to it. And there are certifications, training, licenses, and other, other skill improvement
33:58 Speaker 01 programs that you can take that you can really do, do quite well. And we're not even talking about like the trades. And the trades, that's, that's another low-hanging fruit. If you're looking at, you know, electrician, or plumbing, you know, those are, those are just fantastic jobs that, that can pay really well. In part because there's a lot of people that aren't going, going into them.
34:23 Speaker 02 Right.
34:24 Speaker 01 But they have some longevity to them. So there's, they're gonna be around a while and they can, they can pay really well. When we come back, I want to talk about the, the, since we're right around college graduation time, high school and college graduation time, it's always fun to revisit the lowest paying degrees.
34:41 Speaker 02 Wow.
34:42 Speaker 01 And the highest paying degrees. We're gonna cover that when we come back. Don't go anywhere.
34:47 Speaker 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.
35:02 Speaker 01 Welcome back to Money Wise. We're your hosts today. I'm Sharad Waite here with Debbie Lewis.
35:08 Speaker 02 Ooh, that's like a funky little Kill Bill remix.
35:13 Speaker 01 Murz.
35:14 Speaker 00 Murz. Murz will be in town tomorrow night.
35:17 Speaker 01 At the McCannix Bake, or what's it called?
35:19 Speaker 00 No.
35:20 Speaker 01 Dig Diddy Health?
35:20 Speaker 00 It's, um...
35:21 Speaker 01 The Nile?
35:22 Speaker 00 My name's Spot.
35:23 Speaker 02 Oh, Timbler.
35:24 Speaker 00 Timbler.
35:24 Speaker 01 Oh, a Timbler?
35:25 Speaker 00 Yep.
35:25 Speaker 01 Oh, cool. Timbler's had some great acts. They've had some really good acts.
35:29 Speaker 00 Third time they've had Murz.
35:30 Speaker 01 In the last five or six years.
35:32 Speaker 02 Oh, wow.
35:32 Speaker 01 Must be good. Really good. Did you go? You into it? Always.
35:36 Speaker 02 Let us know how it is.
35:37 Speaker 01 Yeah, tell us how it is. You going tonight or tomorrow? Tomorrow, yeah.
35:41 Speaker 02 Guess where I'm going for the first time this weekend?
35:44 Speaker 01 I know you're going. Uh oh. Hepatitis in a bottle?
35:49 Speaker 02 Valley fever.
35:50 Speaker 01 Valley fever in a bottle. That's it. Yeah, I, I, I try not to say, I said that once with, uh, Chapman. Chapman, Richard Chapman. I was like, immediately felt so bad.
35:59 Speaker 02 Hey, he gives a lot, he dishes a lot of jokes.
36:02 Speaker 01 He does.
36:02 Speaker 02 He can, he can take a jab or two.
36:04 Speaker 01 Yeah, but don't take a jab at our county's expense.
36:09 Speaker 02 It's true.
36:10 Speaker 01 I, I'm going too. It'll be my first Oh, right on. Year at Lightning in the Bottle. Well, that, you know how that is.
36:14 Speaker 02 Wish us luck. Hopefully we come out the other end of this, Stephen.
36:20 Speaker 01 No kidding. You better get some earplugs. Definitely.
36:24 Speaker 02 And then M95. What are the masks? Do we have any masks in the office?
36:28 Speaker 01 Yeah, I bet we do. I've got some, I think. Yeah, it's probably not a bad idea. It's mostly out of towners. It's like 20,000 people, isn't it?
36:36 Speaker 02 People fly from all over the world.
36:37 Speaker 01 Yeah. Bringing their funk. Which is really cool. Like, I wanna, I wanna bump into somebody and, you know, say, hey, I'm from here. I'm from here. Really? Where do people live? Cause out in Buena Vista, it's like no man's land.
36:49 Speaker 02 Between Bakersfield and Taft. It's real, it's pretty dreary out there.
36:54 Speaker 01 Yeah.
36:54 Speaker 02 But they transform this. It's mostly at nighttime. I'm, I'm super excited. And some of the biggest DJs in the world, they're playing out there.
37:02 Speaker 01 Yeah, it's, it's not a genre that is in my wheelhouse. It's mostly electronic.
37:07 Speaker 02 Mostly, yeah.
37:09 Speaker 01 Which I, I like. Um, I, I'm not, I'm not crazy about house music.
37:15 Speaker 01 But it's not, I'll find out.
37:17 Speaker 02 It's gonna be, you're gonna see me very happy, Sharon.
37:19 Speaker 01 We're gonna see Kyle Appleton and Devon Burnsville play on, they're playing
37:24 Speaker 02 Thursday.
37:25 Speaker 01 Thursday night and
37:26 Speaker 02 Saturday.
37:27 Speaker 01 Saturday. Is it Saturday or Friday?
37:29 Speaker 02 Oh, maybe it's
37:29 Speaker 01 I think it's Friday. And is it three days, four days? It's
37:33 Speaker 02 Five total.
37:34 Speaker 01 Five, yeah. It starts Thursday, goes to Sunday.
37:37 Speaker 02 Starts today, technically.
37:39 Speaker 01 Oh, it starts tonight?
37:40 Speaker 02 Today.
37:41 Speaker 01 Dang. Uh, this is cool. It brings millions of dollars into the county. They, like, people end up buying gas, staying in a hotel. Eating food.
37:51 Speaker 02 Flying into the airport.
37:53 Speaker 01 Yeah, all that stuff. And the weather shouldn't be too bad, right?
37:57 Speaker 02 I think like high eighties. Oh, I wouldn't be going if it were bad. At one point, it said 103 on Friday, and I laughed at one of our friends that was like, come on, just buy. I'm like, did you see the weather forecast? Absolutely not.
38:12 Speaker 01 No way, Jose.
38:13 Speaker 02 But it's fluctuated. So I think we'll be okay.
38:16 Speaker 01 I think so. I think so. It's usually cooler out there, too.
38:19 Speaker 02 Yeah.
38:19 Speaker 01 Out at the lake. So Debbie, we are in graduation season. I think it's a good time to recap the lowest paying jobs and the highest paying jobs with college degrees. And just for fun, what are the highest paying jobs with no college degree? So, I mean, everybody always jokes about underwater basket weaving. Turns out underwater basket weavers make a ton of money.
38:46 Speaker 01 You ever heard the degree? That degree? Or no? Early childhood education, social work, human services. These are all in the top and the bottom 10 of lowest paying college degrees. You're going to make between 45 and 70,000 median mid-career mid-career salaries. These are sort of estimates. Theology, religious studies, elementary education, special education, culinary arts, art in general, like fine arts or studio art.
39:17 Speaker 02 Performing arts.
39:18 Speaker 01 Performing art, music, psychology. Those are all, you know, somewhere between 45 and $65,000 at mid-career. You compare that to the top 10 highest paying careers. Number one, and it's been number one on the list for a while, petroleum engineering, which is another one of those difficult industries that I think has a perception problem. There's an issue with people being able to. Foresee it being around in, you know, 20 or 30 years, even though it is. Like, we're not getting rid of petroleum altogether. There's just no way.
39:58 Speaker 02 No.
39:58 Speaker 01 It's in too much stuff. But petroleum engineering, number one, to 170 and 190,000 dollars, you can plan to make median salary in your mid-career. Following petroleum engineering, computer science, electrical engineering, computer engineering, aerospace engineering, you see any common themes there?
40:22 Speaker 02 Yeah.
40:22 Speaker 01 All engineers, basically, systems engineers. Those are all in the, you know, eight, eight out of the top 10. Pharmaceuticals or pharmaceutical science, 120 to 140,000. Industrial engineer is 115 to 135,000. So, you know, there's, you know, depending on what you go into, and even that doesn't guarantee you, you know, making that kind of money. But you want to be, it's really difficult. You got to choose the, you got to choose, hopefully, a career that brings some sort of personal fulfillment and also isn't going to kill you or burn you out.
41:03 Speaker 02 Right. And sometimes a degree doesn't always directly translate into how one might make a living. For instance, my degree was in world arts and cultures.
41:15 Speaker 01 Yeah.
41:15 Speaker 02 That was literally the name of my major.
41:18 Speaker 01 World art and culture.
41:20 Speaker 02 BA from UCLA in the, the art and architecture school. And it was like an independent thing. And I, I still am active in public art, music, the Bakersfield Museum of Art. I'm a creative person and I have developed skills that are very useful, but it does not, um, on paper, directly translate to something that makes sense to most people.
41:45 Speaker 01 Right.
41:46 Speaker 02 But here I am, working in the financial industry, doing business development, so.
41:51 Speaker 01 Do you feel it helped you at all?
41:53 Speaker 02 Absolutely.
41:54 Speaker 01 Your degrees helped you?
41:55 Speaker 02 It's, um. Interesting trying to explain to people what my major and my experience was, but I wouldn't change it for anything.
42:04 Speaker 01 Yeah.
42:05 Speaker 02 And I've, I think I've landed on my feet pretty well.
42:09 Speaker 01 Yeah.
42:10 Speaker 02 You know, I've done a lot of different things.
42:11 Speaker 01 Yeah.
42:12 Speaker 02 Since I graduated from college and there's always common threads. So I don't want to discourage anybody out there from, you know, you don't have to have everything perfectly dialed in.
42:22 Speaker 01 That's right.
42:23 Speaker 02 When you go to college.
42:24 Speaker 01 Yeah. And even you just saying, you know, you, your experience at UCLA and your time living in LA is, has been valuable. I've heard you bring up many experiences and, and of course in business development, which you are in now, you, it's great to have, have a background in culture and art, you know, as you're just, you're meeting lots of new people.
42:42 Speaker 02 Yes.
42:43 Speaker 01 You gotta know how to talk to people. You have to know how to relate to cultures and, you know, different people.
42:50 Speaker 02 Yes.
42:51 Speaker 01 So, good job. How about top 10 paying, high paying careers that do not require a college degree? Commercial pilot. So for the non-airline commercial pilot, it's over a hundred grand. You'll make about a hundred and 3,000 on average. You only need a high school diploma and then you gotta get the flight training and the FAA license, but no college degree required. Same thing with elevator installer repair. I've told anybody, if you, if you want job security, go into the elevator business.
43:18 Speaker 02 You've had a little experience with that.
43:20 Speaker 01 Yep. It has been a nightmare for us at the Woolworths Project dealing with, with our elevator.
43:26 Speaker 02 I'm not laughing at you, I'm laughing with you.
43:29 Speaker 01 Yeah, thank you.
43:30 Speaker 02 Cry laughing.
43:31 Speaker 01 97,000, almost six figures if you're an elevator installer or repair. Power plant operator, detective or criminal investigator, they're close to six figures. Radiation therapist, only requires associate degree or certification. So all of these pay between 80 and a hundred thousand dollars. So you don't have to go to college, that is for sure. I want to thank all of our listeners for tuning in. If you missed any of these shows or past shows, wherever you stream your podcasts, there you can find us. And as we leave today, remember these three things. Be smart, be safe, and always be money wise.
44:10 Speaker 03 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.
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