5/29/25 Refinery Closures, Retirement's Blind Spot, and Collectible Comebacks

The Moneywise Radio Show and Podcast Thursday, May 29th 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 Garo Ellis padded radio room off Stockdale Highway, here is Money Wise. Call or text into the show 24/7 at 396-1000.

• 0:39Speaker 00

  Here is Money Wise.

• 0:40Speaker 01

  Money, money, money, money.

• 0:44Speaker 01

  That's right. This is the Money Wise Show. I'm your host today, Chris Pelster, with...

• 0:49Speaker 00

  Seth Perry, glad to be here.

• 0:51Speaker 01

  Yeah, on this beautiful Thursday, so we are excited about the show today, excited to try to make this show the best that it can be and make you all money wise. We are in the Garo Ellis padded radio room off Stockdale Highway and thinking about you, Garo, and we are excited to talk about a few things today, and actually, no guest. So, obviously, we are always blessed to have some wonderful guests, but today, we're going to go through a few great questions from our listeners, and we think there's a lot of meat and potatoes in these questions, and so, stick around. We're going to go through a couple of great comments that came in, and if you have anything that you want to join in, or have a question that you want to either ask or even send in, so you don't even have to talk live to Mr.

• 1:34Speaker 01

  Steven over there, you can always join the show and be part of it, 661-396-1000. If you're listening on the podcast, you can still do the same thing, but you're either going to leave a message. Can they leave it like a voicemail?

• 1:46Speaker 00

  They can.

• 1:46Speaker 01

  You get them?

• 1:47Speaker 00

  Yep, right to my phone.

• 1:48Speaker 01

  There you go, there you go, voicemail.

• 1:50Speaker 00

  Have you ever had somebody come into the...

• 1:52Speaker 02

  The office to ask a question though?

• 1:53Speaker 01

  Drop a post-it off, a post-it on your desk and be like, here's my question, but I do not want to be on the radio.

• 1:58Speaker 02

  We are not hard to find.

• 2:00Speaker 01

  Yeah, we're, we're where the padded radio room is off Stockton Highway. We say it every show, Stephen. Hey, but before we get into those questions and try to make us all more money wise, we are going to go over the markets and what's going on. And guess what? Today, S and P 500 at least was up.

• 2:22Speaker 02

  Let's go.

• 2:23Speaker 01

  Markets in positive territory. Last month, climbing out of a tough couple of weeks, up 6.3 in the last month. Year to date hovering just positive point seven, just under 1% positive for the year. Rearview mirror, you look over a year, we're still looking pretty good. And, and just another reminder that, that the S and P 500, your stocks in your account are a part of your portfolio, depending on how you're invested. There's a lot of different things going on, but the markets did end up positive today. We are in the season where companies are coming out and, and giving, you know, earnings and, and different things.

• 3:07Speaker 01

  GDP was slightly better than expected from Q1.

• 3:12Speaker 02

  Jobless claims.

• 3:14Speaker 01

  Jobless claims was better.

• 3:15Speaker 02

  Better than expected as well.

• 3:17Speaker 01

  It doesn't, you know, I mean, it's still 230,000 jobless claims. So, so that one was a little bit of the pressure. So, the Fed stance, minutes on the Fed, still cautious, watching the data. So just some of these different, you know, key indicators coming out. Bond prices are up, yields are down. 10 year treasury yield dropped 4.43% helped keep mortgage rates in check. The old one that we all look at, the 30 year Fannie Mae, 6% bond, trading near key resistance at 101.

• 3:52Speaker 02

  Bingo.

• 3:53Speaker 01

  There you go.

• 3:54Speaker 02

  All right.

• 3:54Speaker 01

  So that's the market news.

• 3:56Speaker 02

  Like it.

• 3:56Speaker 01

  So let's jump into some of these questions that came in and start answering some questions. And one of them was just a

• 4:02Speaker 02

  Comment.

• 4:03Speaker 01

  You know, a little bit of a comment said, looking forward to hearing more about business loans. Next time you guys get into it. Thank you, Money Wise. Um, you know, as financial advisors, we have, uh, experience and, um, knowledge in a lot of different areas, but we're definitely not experts in business loans. So we love to have banking professionals come in and share their expertise.

• 4:23Speaker 02

  Which was Sammy yesterday.

• 4:24Speaker 01

  And Sammy, that's what I was going to say is Mr. Sammy in our office, um, has a great history at some great local banks here. And, uh, and so that's the robust team you get here at Money Wise and he gets to come on and talk about some of that experience, uh, to try to help our, um, business listeners, business entrepreneurs, um, any, anything we can do to educate you. So, so great.

• 4:46Speaker 02

  Can I jump in there real quick, Chris? I was thinking, you know, when people are choosing a financial advisor to work with, I caution anyone who meets with someone and they want to be a jack of all trades. I don't think that's a great idea. You know, they're giving you tax advice or selling you insurance or selling you investments. They're, they're, they're talking about real estate, you know, you know, it's good to know those things, but a lot of advisors here in Bakersfield even attempt to know all of those things. And I'll be the first to admit, you know, as not our specialty personally, and then you, but we have such a robust network here at Money Wise. And then to have someone like Sammy in-house, we're, we're very blessed.

• 5:23Speaker 01

  Yeah. Yeah. Cause he can, uh, come in like some of our business owners who are getting close to that retirement, uh, goal or, or starting to really eyeball that you start making some plans to retire. There's some great consultants here in town that, that kind of do some of the same thing, but to have him to be able to come in, um, with an advisor here in the office and sit down with some of our clients and offer some of that expertise. Um, just, just some things to think about, you know, and, uh, the banking side of things. If, if we have business owners that are dealing with them, some, some headaches in the banking world, it's nice to have somebody, um, on our client's side that can kind of steer them in the right direction. And so, um, one of the things I was going to say is the, the, the jack Of all trades are the one stop shop model.

• 6:07Speaker 01

  It does seem attractive because it's like, okay, I go to my financial advisor and he does everything. And he does taxes and he does this and that and this, and I only have to go to one place. And the, the problem is, is like you said, is being able to be proficient and, and good in all those areas is very, very difficult. So we do work as a team here, but a lot of times we work with other professionals.

• 6:28Speaker 02

  On behalf of the client.

• 6:29Speaker 01

  On behalf of the client.

• 6:30Speaker 02

  We build relationships with their CPAs, their estate planning attorneys and, and all work as a team to put the best comprehensive financial plan together.

• 6:37Speaker 01

  And so one of the things, if you are working with a financial advisor, hopefully if needed, that financial advisor would be more than happy to jump on the phone and talk to your CPA. And to get some answers and stuff like that and, and, and not send you on a wild goose chase. And so, um, you know, as much as possible, we try to quarterback that, or we try to work with our clients to be able to make those, uh, connections. Because sometimes it's like the CPA explains a certain way, then you have to run back and tell your financial advisor. And it's like, well, well, we can set up a phone call, we can do a little bit of a group meeting.

• 7:07Speaker 02

  Talk on the phone together.

• 7:08Speaker 01

  Right, right.

• 7:09Speaker 02

  Absolutely.

• 7:10Speaker 01

  Yeah. And so the next comment that came in, um, it's going to spill into a little bit of a conversation, which may not seem like a very big conversation, but we will talk about a little bit. So if you've listened to the show for a while, um, back in the day when we used to give the numbers and rattle them off on, on a day, which we still do kind of go into that. But when we would come to talk about precious.

• 7:35Speaker 01

  Gold, we'd call it. And then, uh, let's see, silver was hillbilly gold and.

• 7:41Speaker 01

  The dumb, dumb Dow. Uh, but, but the question came in and said, why do you guys call gold precious? Um, and so that little blurb that you just heard out of the movie Lord of the Rings, uh, they're the ones who called it precious. Um, but gold is considered precious because of some of the realities of gold and why gold has value is because of its rarity and its scarcity. Um, you know, it's a rare element. It takes a lot to get it out of the ground and to uh make it into usable or jewelry or whatever it is. So it's it's scarce and that's what makes it precious. And it may seem kind of like, you know, well, yeah, we know that Chris, but but you know, just to kind of remind folks.

• 8:21Speaker 02

  They asked and so yeah, we double checked and there's no special meaning behind it. It's just it's it's highly rare. It's it's a precious material and yeah.

• 8:30Speaker 01

  There you go.

• 8:30Speaker 02

  Some of it's very sensitive, too.

• 8:32Speaker 01

  And historical and cultural significance. I will say that throughout time, it's always been a store of value. Um, it's also been um symbolic uh of wealth and power. So throughout history, uh, gold has been one of the things that would, you know, royalty or the elites of um cultures uh would hold to demonstrate their position. Again, it's a store of value. So gold has always served as a reliable store of value for many centuries, meaning, you know, you know, we used to be tied to the gold standard and stuff like that. So you can kind of go down that rabbit trail if you want to, but uh but gold has always been seen as that's a medium of exchange. Um, and then even cultural and religious significance.

• 9:15Speaker 01

  Um, you know, various religious artifacts and ceremonial and rituals always tend to have gold or the gold goblet, I guess you could.

• 9:23Speaker 02

  You know what this made me think of is Hearst Castle. Have you guys been?

• 9:27Speaker 01

  Yeah.

• 9:27Speaker 02

  Oh, yeah, that's fun. Yeah. 24 karat gold, uh fused gold inlay in the pool tiles. And I remember on the tour, they had to shut it parts of the tour down because people would would stop when the guides weren't looking and chip out little pieces of gold, you know, and uh but yeah, it's a beautiful place. If anyone in Bakersfield, you're looking for a looking for a day date or some cool place to take the kids, shoot on over to Hearst Castle.

• 9:50Speaker 01

  There you go. And then the last thing that kind of uh makes gold precious is the psychological factor, which is kind of funny, but uh humans are naturally drawn to shiny and lustrous objects. And so gold's reflective properties make it appealing.

• 10:06Speaker 02

  Wow, Chris.

• 10:06Speaker 01

  That's why we that's why we uh.

• 10:08Speaker 02

  I don't drink wine, but if I had some, I'd be sipping it right now.

• 10:10Speaker 01

  Yeah, yeah.

• 10:11Speaker 02

  Yeah.

• 10:11Speaker 01

  That's why that's why some of you folks are walking around here with fancy gold watches.

• 10:15Speaker 02

  Who is the, um, who's the athlete? It's either the ath- I think it's a professional athlete or rapper who was open about buying all fake stuff and investing the rest. Who was that? Do you guys know what I'm talking about?

• 10:27Speaker 01

  No, I know some that put real-

• 10:30Speaker 02

  Oh, I know lots that put real or no broke.

• 10:33Speaker 01

  Million dollar, million doll- yeah, I've heard, uh, I've heard old Mayweather's gotten himself into some financial issues and-

• 10:39Speaker 00

  Was it Chad Johnson? Ocho Cinco?

• 10:41Speaker 02

  I think it was, dude. That's-

• 10:42Speaker 00

  I wouldn't doubt it because that sounds like him.

• 10:44Speaker 02

  Yeah. Yeah. Just iced out, you know, but it's, you know, probably got it for 20 bucks, you know, and he's got money in the bank.

• 10:51Speaker 01

  Yeah. Yeah. I heard he invested the rest in Beanie Babies and he's-

• 10:55Speaker 02

  Okay.

• 10:55Speaker 01

  He's hoping, yeah, he's hoping the Beanie Babies are gonna come around.

• 10:58Speaker 02

  Score. What about Garbage Pail Kids?

• 11:00Speaker 01

  Yeah.

• 11:01Speaker 02

  Pokemon cards?

• 11:02Speaker 01

  That's another one. Soon as, as soon as all these, what do we consider? Gen X?

• 11:06Speaker 02

  I think we're right, right before or right after Gen X.

• 11:10Speaker 01

  Soon as all these Gen Xers or whatever we are, like, hit, you know, hit our 50s and just got, you know, no kids, no kids leaving lights on, no kids leaving the air conditioning way too low, and we're gonna have money coming out of our years and we're just gonna be able to go back and get all those-

• 11:25Speaker 01

  What is it called?

• 11:26Speaker 02

  Garbage Pail Kids?

• 11:26Speaker 01

  Garbage Pail Kids, the ones that I couldn't have back in the day or couldn't afford.

• 11:30Speaker 02

  Do you know what your name was? I can tell you exactly what my name was.

• 11:33Speaker 01

  What was it?

• 11:34Speaker 02

  Bad Breath Seth.

• 11:37Speaker 02

  You'll have to look it up, man.

• 11:39Speaker 00

  I got you. Hold on.

• 11:40Speaker 01

  Jeez.

• 11:41Speaker 02

  Look up Chris. Look up Steven.

• 11:43Speaker 01

  Chris is, I, I wasn't paying too much attention there, but, so anyways, yeah, a long explanation about gold, but obviously gold for a long time, and gold's been on a rampage because uh, we had some inflationary, um, realities hit. Um, this last, uh, 2022 was when we first saw inflation really rear its head. Um, so the feds raised interest rates and, uh, and so gold, uh, responded. Um, historically, I think gold averages around three or 4% annually, but it's got some pretty big jumps here and there, and so when it catches steam, it, it takes everybody by storm. A lot of people will start to think it's the, uh, silver bullet, even though it's gold, or the gold bullet of investing, like, oh, man, you can put it in gold and gold's always

• 12:27Speaker 01

  keeps its value, but I, I try to remind people that if everybody's shoving their money into gold and you're the last one to the party and then things kind of level out and people start to take their investments back out of gold. Including big, large money managers that might speculate on a run up in gold and then at the end of the ride, they take all their big bucks out of it. And sometimes the individuals that get into later of the party are the ones who pay the penalty. A good example of that is back in 2008, 2009, everybody remembers that little market activity we went through. Gold went on a run after that because fear and some of these different things were obviously rampant. So, big pouring into gold and we did not hit the number that we saw in 08, 09, or maybe

• 13:12Speaker 01

  2009, 2010. It took almost 10 years to get back to the number that we saw gold at per ounce in 2010. So, meaning if you bought in 2010, when everybody else was kind of throwing money at gold, depending on, you know, if that amount you put in at that time would have went down and stayed down and not recovered for eight or nine years, almost 10 years, and then something called COVID hit and 2020, you know, obviously with the fear and panic of that, gold saw a little bit of a jump there. So, it's just another one of those things to be cautious about, you know, thinking that anything is the silver bullet of investing, or I'm going to take all my money out of this and go here. It's like, we believe in diversification and gold is part of a diversified portfolio.

• 13:55Speaker 01

  A lot of times, like inside of our portfolios, there's treasury inflation protected securities that invest in real estate and some of them are gold companies or gold transport companies, those types of things that are going to do well if inflation is real because if inflation is really going up, then gold's going to go up.

• 14:13Speaker 02

  And some people like to be able to look at their investment. You know, if they invest in companies, they can't necessarily see it, while others, they don't like gold because it's just sitting. Like, you might go look at it and you're thinking, how are you making me money right now? Is where a lot of people like to invest their money and see it working for them.

• 14:29Speaker 01

  Yep. Well, there you go. There's our long answer on gold. Stick around, we got another question.

• 14:34Speaker 00

  If you're a business owner who provides a retirement plan for your employees, contact Money Wise Wealth Management to see if you're maximizing your options and minimizing your liabilities. Money Wise 401k plans are customized to you and your company's needs. 661-847-1000.

• 14:57Speaker 01

  Welcome back.

• 15:01Speaker 01

  This is the Money Wise Show in the Gero Ellis padded radio room. And we are looking up Garbage Pail Kid cards on eBay right now. And lo and behold, Heven Steven is worth $25 on eBay. So Heven, meaning the old throw up picture.

• 15:25Speaker 02

  I'm pretty sure just from glancing at a few of these old throwbacks, they would be canceled.

• 15:30Speaker 00

  Oh, yeah, they were banned for a while, too.

• 15:32Speaker 02

  Yep, they're pretty graphic for young kids to trade, but I remember them being fun.

• 15:38Speaker 01

  And in case you were wondering, Chris, Swiss Chris.

• 15:42Speaker 02

  Swiss Chris.

• 15:42Speaker 01

  He's got the holes in him. He's Swiss Chris.

• 15:45Speaker 02

  Yep.

• 15:46Speaker 01

  Like the Swiss cheese. So I don't know how much it's going for on eBay, but.

• 15:50Speaker 02

  Looks like that, buddy. See that?

• 15:52Speaker 01

  I remember it. I actually remember it now. Yeah. Thanks for bringing up some trauma.

• 15:56Speaker 02

  For sure. For sure. Before we get going, Chris, I did have a comment come in from a really good listener out there. And it says, and perhaps some streets are paved with golden heaven. Laughing face.

• 16:10Speaker 01

  Boom.

• 16:11Speaker 02

  Boom. That's from my mom. Hello, Cooper.

• 16:14Speaker 01

  Yeah.

• 16:15Speaker 02

  It's the only time I'll do that. Had to give him a shout.

• 16:17Speaker 01

  Nice. Good to know you have a fan out there.

• 16:20Speaker 02

  One, one and a half.

• 16:22Speaker 00

  That's the only fan you need, okay?

• 16:24Speaker 01

  Here's the best thing, which right now I'm going to take a second and say, we're blessed with some wonderful moms.

• 16:29Speaker 00

  Yes.

• 16:29Speaker 02

  Yes, sir.

• 16:30Speaker 01

  Gracias, mamas. I love it when I post something on social media and my mom's the first one that like says like, so cute or whatever. I'm like, thanks, mom.

• 16:40Speaker 02

  Yeah.

• 16:41Speaker 00

  So it doesn't just happen to me, huh?

• 16:43Speaker 01

  No, it's like, mom, now you're the first comment when I was trying to be funny or trying to do something and now it just.

• 16:50Speaker 02

  I'm going to wrap my mom out about one thing. So we always have a group chat, like usually me and my wife and her, you know, talking, coordinating and or just sharing funny things. It's always, she always has emojis. If we ever get a reply that's in lowercase with no emojis, we know she disagrees.

• 17:10Speaker 02

  You figured it out.

• 17:11Speaker 01

  Yep.

• 17:11Speaker 02

  It's our tail tail.

• 17:13Speaker 01

  It's our tail sign.

• 17:14Speaker 02

  Yeah.

• 17:15Speaker 01

  Boom.

• 17:15Speaker 02

  All right.

• 17:16Speaker 01

  Well, thank you.

• 17:16Speaker 02

  Thank you for that reminder.

• 17:18Speaker 01

  Yep. Um, another, uh, uh, comment came in and it's, uh, says, can you guys explain what's going on with Nvidia? What does this pattern typically mean? So we always have to start conversations about individual stocks, saying this is not a, you know, to buy or sell or anything, but Nvidia is obviously a humongous name, um, in Wall Street in, in, uh, you know, the, the, the financial world media, uh, it's been on an absolute terror over the last couple of years, um, you know, really, really catapulting back to COVID, uh, when all of a sudden, um, you know, we needed major, major amounts of chips and chip manufacturing and, and now, you know,

• 18:01Speaker 01

  even our vacuum cleaners have computers in them and, I mean, every single thing out there now is quote unquote, smart and needs these chips and everything. And so Nvidia has just been, uh, the game changer. So we're just going to talk about it a little bit about some of the things going on with Nvidia. Obviously, like I said, it's, it's not a, uh, an encouragement to buy or sell. Um, and it's just one of those things that it's, it's kind of like you can't wrap your mind around what this company is doing, uh, and then even knowing where it's going, because with a lot of the positive news coming out right now, you would think that the stock is going through the roof, but you said year to date, the stock is what?

• 18:40Speaker 02

  It's up, you know, six tenths of a percent.

• 18:42Speaker 01

  It's flat.

• 18:43Speaker 02

  Yeah.

• 18:44Speaker 01

  So, and one of the things that I said is sometimes with these companies that everybody's talking about it and looking at it and pouring money into it, a lot of times it has to continue to hit insane numbers to justify its valuation and where it's at. Doesn't mean that it won't keep going, going up and going up over time, but it's just definitely one of those more speculative type of stocks because of how much attention it has. Good news is going to be great. Bad news is going to be really bad because there's going to be so many people that are watching it. It creates a lot of volatility. So even if it does go up over time or for a very impressive, uh, numbers, it goes on a very wild ride. So when people talk about the Wall Street or the stock market

• 19:26Speaker 01

  being a roller coaster ride, it's definitely much more highlighted when you're talking about a big name like Nvidia, the world is watching, if you will. So, uh, just to talk a little bit about it, um, So they just came out with their quarter numbers. Revenue came in at forty-four billion dollars, up sixty-nine percent from a year ago. So just to put that in perspective, you know, we talk about the S and P five hundred, kind of the average historically has been about ten percent growth per year, right? You're hoping these companies are figuring out ways to grow at about ten percent per year. You heard me right. Their revenue came in at sixty-nine percent increase from this time a year ago.

• 20:09Speaker 01

  And it was actually ahead of what was expected at forty-three point three billion dollars was the expectation. They beat that by, you know, three, four, four, you know, almost a full billion dollars. Those are big, huge numbers we're talking about here. So it was also adjusted the earnings per share. It was higher than expected, just slightly, ninety-six cents a share. The net income to the, to the company was eighteen point eight billion. That was up twenty-six percent from fourteen point nine percent billion a year earlier. So profitability went up as well. So, so, I mean, kind of everything's trending in the right direction, right?

• 20:54Speaker 01

  Well, great, revenue's up, but if profitability's down, then we're having to spend a bunch of money to keep growing and so.

• 21:00Speaker 02

  It's only, it's only five percent off of its all-time high from January, so they're, they're creeping back up there. Nvidia is everywhere, by the way. Did you know that?

• 21:09Speaker 01

  Yeah.

• 21:10Speaker 02

  They help, they help all these companies out, right? So you've got Amazon, Microsoft, Google. They also help Nvidia's drive platform is used by companies like GM, Toyota, Mercedes Benz, Jaguar, Volvo. They're all throughout the pharmaceutical industry. And basically, any major company is using Nvidia's AI solutions and infusing them with their own. And I've heard it said by one of our, one of our friends when we went to lunch with him a couple of months ago, that if companies aren't adopting. Some type of AI within the next five years or so, they're going to be left obsolete. And it doesn't, I'm talking just any job, anything, right?

• 21:49Speaker 01

  Yep. And back to the conversation that we've had before. Sometimes people think that the way to capitalize on it is investing in Nvidia, which obviously is at the hub of it. But the good thing is, is you can diversify yourself into a whole handful of mutual funds that you might be in, or growth funds that you might be in, or whatever your portfolio is. Hopefully, you know, you're understanding a little bit more and more of it through the days, through the years. But all Wall Street companies are trying to always improve and increase profitability and move forward. And so AI and chips and some of this, these supercomputing abilities, these companies are the ones that are going to try to take that and to make it them a better company, a more profitable company,

• 22:34Speaker 01

  make their services to their clients, whatever industry they happen to be in. That's one of the ways you can just continue to hold your investment. So sometimes we let some of the headlines or political issues or global issues even, it overwhelms people's desire to be invested and to stay invested. And I just tell people like these companies are continually using these technologies. You may not want to understand. I know a lot of people that are like, okay, I'm done, I'm over, I'm not going to learn any new technology. I know how to use my phone and that's it. I'm not moving forward. Well, good. You can still be an investor in these companies that are going to take these technologies and hopefully improve processes, become more efficient, become more profitable. And you can just let your money work for you in these companies.

• 23:18Speaker 01

  And you don't have to be a genius. You don't have to be a day trader. You just have to take a calculated amount of risk and take the amount of risk that you're comfortable with, hold some of these stocks and it's going to help you actually achieve more of your financial goals. And, you know, including enjoying more income. And whatever it is that you are most passionate about, it's going to allow you to be more freed up to do those things over time. And if you just get consumed with the media or trying to figure out what the media is telling you should do with your money, you're going to end up wore out, which actually is, if we have time. Later this show, we're going to talk a little bit about some of the psychological issues, I guess, going into retirement.

• 23:58Speaker 02

  Absolutely.

• 23:58Speaker 01

  There's a blind spot that many, many people don't think about when they think about retirement. And it's actually very achievable for every single one of you out there to be ready in this area for retirement. And a lot of people don't do it, unfortunately. So stick around. We'll talk about a few more things. And we'll try to get to that before the end of the show. Stick around.

• 24:17Speaker 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.

• 24:35Speaker 01

  Welcome back. Hey, we are, we're striking a nerve with some of our listeners, not a nerve, but, but just, just really getting those, the memory lane going with this garbage pail stuff. So what, what do we have? Somebody?

• 24:49Speaker 02

  Wow. Garbage pail kids. I gave my grandson my pet monster that I took everywhere when I was younger. Now I catch myself saying, back in my days, and I'll be 50 in two years. LOL. I'm in that boat, man.

• 25:02Speaker 01

  Monster. Power of Grayskull. I mean, come on. I mean, you can, you can go all day.

• 25:06Speaker 02

  Transformer Nation. I was Transformer Nation. Ninja Turtles.

• 25:09Speaker 01

  Yep. There you go.

• 25:10Speaker 00

  Thundercats.

• 25:12Speaker 02

  What was it?

• 25:13Speaker 00

  I was a Thundercats.

• 25:14Speaker 02

  Thundercats.

• 25:15Speaker 00

  Yes.

• 25:15Speaker 01

  You wore leotards?

• 25:16Speaker 00

  Oh, yeah. Still do.

• 25:20Speaker 01

  And in the office. It's pretty cool.

• 25:22Speaker 02

  He-Man? What was the He-Man bad guy?

• 25:24Speaker 00

  I was, uh, Captain, or you're talking about, um, oh, man, I've got him tattooed right here on my chest, too. Oh, man.

• 25:32Speaker 01

  Yeah, I don't even know. There you go.

• 25:35Speaker 02

  Anyway.

• 25:35Speaker 00

  I should know that.

• 25:36Speaker 01

  Yeah.

• 25:38Speaker 02

  We wanted to give one piece of career advice with AI. I just want to encourage all the listeners, when your companies start to adopt, because it's not if, but when, when they start to adopt AI. I know change can be difficult, especially if you're getting up there in years a little bit. I just strongly encourage you to try to be the leader in your workplace to adopt it as quickly and as efficiently as you can. Ask a ton of questions. All these new technologies have great help desks where they can help guide you through, and you want to make yourself as valuable as possible because it will come a time that they will start to reduce the number of employees needed. And if you're one of the ones that adopted it early, it could pay dividends for you.

• 26:17Speaker 01

  You know, and one of the things to carry on that just a split second is everybody's probably felt the pinch recently that people have left the workplace and they don't necessarily get replaced. And some people feel like they're being asked to do two people's work and this and that. Well, AI and some of these technologies can make that work easier, but it's just a painful process to get to where it becomes, okay, we're using this technology. Now we can use it. And so if you can bridge that gap, in the long run, it's actually going to make your life easier. It's just, change is never fun. A lot of people are like, you know, I'm going to be replaced by robots. Well, no, not necessarily. Maybe the robots, quote unquote, or the AI technology is actually going to just allow you to do

• 27:02Speaker 01

  all your job responsibilities much quicker, much easier, you know, those kinds of things. So hopefully it's going to make lives better, just like at the beginning of the, you know, email and all these different technologies, computers. At first it was like made life awesome. Then it started to get really complicated because of how many different systems and all that stuff. Well, that's what AI can bring to the table as far as bring that all together. So try to challenge yourself. Try to be the one that jumps out there and learns it. And if you're retired, I mean, we hear all the time, I'm not learning anything new. And maybe you have that flexibility, but career advice is adopt it, move forward with it as quickly as possible because there's not a whole lot of industries that won't begin to add to that.

• 27:41Speaker 02

  Skeletor. Thank you, Stephen.

• 27:44Speaker 01

  Now you have a, so you're, you have a Skeletor.

• 27:48Speaker 02

  I do, I have a Skeletor tattoo.

• 27:50Speaker 01

  And I don't feel as bad about forgetting his name then.

• 27:54Speaker 02

  I should, I should know. It's one I can't see, so.

• 27:57Speaker 01

  You're gonna have to go get his name tattooed next to the picture, dude.

• 28:00Speaker 02

  I need some visual proof of this to put on Facebook.

• 28:03Speaker 01

  Yeah, so, so just finishing up with Nvidia, by the way, again, just a phenomenal company. Their gaming revenue increased 42% to 3.8 billion. Automotive and robotics, you know, they're in cars, they're in robots, 72% increase to 5600. I mean, just a huge growth company. The problem is, is the stock is very overvalued and move very quickly because everybody's wanting to get on it. And then it's like, that's, that becomes that game of how far will it go to where, when the, we won't be able to see that growth either. So, um, just a lot of risk there. But anyway, so, so, you know, be cautious. It is part of a diversified portfolio. Most growth portfolios are going to have it in it. If you own the S and P 500 in any way, shape or form, it's part of the S and P 500. So there you go.

• 28:48Speaker 02

  This next question made me sick to my stomach. Can I read it fully before you kick off? Is ga, it made me sick to my stomach because I thought, man, I haven't heard of this, right? Is gas really going up to $10? I hope this is fake news, says a listener. What, what did you find out, Chris?

• 29:02Speaker 01

  Yeah, well, I think the thing is, is what they're talking about is the, uh, two major refineries in California are planned to be shut down. Uh, the Valero refinery in Benencia and Phillips 66 refinery in LA. Uh, combination of factors that are leading up to those closures. Um, rising costs, increasing stringent regulations. Uh, the closures will significantly reduce California's in-state refining capacity, potentially impacting obviously supply, which would increase the prices. So there's no way to say it's going to $10, but I imagine that's what you're talking about. When that's the question of, I've heard it's going to 10. Well, there could be. I mean, if, if all of a sudden you have two refineries shut down,

• 29:43Speaker 01

  there's going to be less gas out there, lower inventory, prices go up. And so it could end up going towards that.

• 29:51Speaker 02

  We'll have, we'll have Chad Hathaway on next Thursday, so we'll definitely have to ask him.

• 29:55Speaker 01

  Yeah.

• 29:56Speaker 02

  And it might, it might be new, uh, old news to some, but I wasn't aware and I'm confirming that US Senate blocked. California's electric vehicle mandate that was gonna require all new cars to be sold to be zero emission in 2035, which is just not practical.

• 30:11Speaker 01

  That's one of the reasons why Governor Newsom, you know, required a minimum, maintain a minimum fuel stockpile because of some of these things. And these refineries are saying that's too much gas to keep on hand. And then also the demand or the desire to make everybody drive electric vehicles decreases the demand, which plays with prices as well. So there's a lot of factors that go into the pricing of gasoline. Obviously, at the, you know, at the base of it all, it's petroleum and what petroleum is doing, or oil. But, you know, just one of those things where could it go to $10 an hour, $10 a gallon? Sure. I imagine a lot of people used to think there's no way that it would go to five, and now five is the norm.

• 30:55Speaker 02

  Our senior year in high school was a buck. It was a dollar a gallon in 1998.

• 30:58Speaker 00

  There we go, back in my day.

• 31:00Speaker 02

  Dang it. It's happening.

• 31:02Speaker 01

  Well, there you go. Hey, I wanted to switch gears a little bit and talk a little bit about a retirement make that 90% of people make and that you can still avoid. A lot of times we get so fixated on investments and money and the income part of it and all that stuff. And a lot of people don't plan for retirement in this area. And it is a really, really big part of retirement. Everybody thinks that when I go into retirement and I don't have to go to work anymore, my life is going to be so much better. I'm going to have so much more, you know, peace or whatever it is that you want to get away from while you're working. And unfortunately, I think the statistics were here. Where was it? Come on, Chris.

• 31:46Speaker 00

  Well, while you do that, we'll take our final break.

• 31:48Speaker 01

  Okay.

• 31:48Speaker 00

  And after this, we'll get back into that topic and we'll have the rest of the show right here on ESPN Bakersfield. We'll be right back. Money Wise Wealth Management is the only locally owned independent firm that uses a comprehensive wealth, tax, and estate approach. Working closely with a highly trusted CPA and attorney. For information on how Money Wise can help you invest and plan for your future, call 661-847-1000. That's 661-847-1000.

• 32:18Speaker 02

  Here comes a face melter.

• 32:27Speaker 01

  Yes.

• 32:30Speaker 01

  So we were getting into kind of a, is that why you're playing this? Cause we were kind of getting into the touchy feely element of retirement, not numbers and stuff.

• 32:39Speaker 02

  Good job.

• 32:39Speaker 01

  Well, what we were talking about a little bit was, uh, purpose, purpose in retirement. And it shared a story of a lady named Sarah. She was a high school principal for many, many years. She saved diligently, planned meticulously. She dreamed of sleeping in, gardening, a little bit of travel, maybe reading some of those books that were gathering dust on her shelf. And lo and behold, three months into retirement, she was miserable. And the garden felt like work. The books remained unread and sleeping in felt more like giving up more than a luxury. Um, and so, you know, I have seen this, like we've helped lots and lots of people transition into retirement. And I know somebody right now is like stressed with work and this and that and be like, how could you be? I'm telling you, this is the reality of a thing.

• 33:23Speaker 01

  Um, and that, uh, and that change, the statistics are sobering. Research shows that within six months of retirement, many people, uh, experience what psychologists call retirement syndrome. It's a combination of depression, anxiety, loss of identity. It strikes when the structure and purpose of work suddenly disappear. And I know a lot of people might be so stressed with different things. Um, and, and sometimes we think that work is at the, the middle of all of our stresses and our depressions and our anxieties. And if I just didn't have to go to work, I'm not going to have these things. But lo and behold, yes, leaving work can be great.

• 34:04Speaker 01

  Um, but within a short timeframe, you know, the statistics show that, that you lose some of that structure and some of that purpose.

• 34:11Speaker 02

  I experienced it as a teacher and, and you know, you look forward to summer all year and it's like, yeah, here we go. And the first week you're like, man, this is cool. You're lazing around and then you get like, okay, what do I do? You know, it starts to drive you crazy. I've, I've heard it said, don't just retire from something, but retire to something. Make sure that you have something you're going toward. You know what you're going to be doing. It's one thing to think about. Your money, make sure your money is going to last. That's where we help you out, but we also help people like make sure you're retiring to something. You've got some, some purpose. Can be a charity, can be part-time work.

• 34:41Speaker 01

  Yep.

• 34:42Speaker 02

  Family.

• 34:42Speaker 01

  Yep.

• 34:43Speaker 02

  Travel.

• 34:43Speaker 01

  And so that's why, you know, you like, we encourage people like you don't have to necessarily work for money anymore. And that's great to have a solid financial plan in place. If you can do something and get paid, that makes the financial side look a little bit better. But it's just a reminder that every single person, no matter where you're at financially, no matter where your income level is, no matter what your retirement is going to look like. Everybody can plan to retire with purpose. The research on purposeful aging is very, very compelling. Uh, Stanford Center on Longevity, um, has done some studies and it shows that people with a strong sense of purpose, not only live longer, but live better. And when I say better, what are we talking about? Stronger immune systems, lower rates of chronic diseases,

• 35:26Speaker 01

  more satisfying relationships and social connections and higher levels of life satisfaction. Like I said, sounds a little bit touchy feely, but we have helped hundreds of people transition into retirement. They leave sometimes great careers, high levels of position of power, or even not high levels of power or position or anything, but just doing something that was productive and good and part of a team. And all of a sudden that's gone. And you can go through these seasons of what they call retirement syndrome. Um, it's a real thing. So start making plans now that when you retire, yes, you're going to get rid of some of those stressors, but have a few other things that you're going to start to dedicate your time to. And yes,

• 36:09Speaker 01

  golf may be part of it, but you're not going to do that for 40 hours.

• 36:12Speaker 02

  What if you don't have your health, man? I mean, you gotta be real. Anything can happen to your health.

• 36:15Speaker 01

  Right. So kids and grandkids is a great thing, but not the only thing. And sometimes that's tough, especially.

• 36:21Speaker 02

  You know what, you know what this is called? This is called a psychological blind spot about retirement. People don't take this stuff into consideration. There's actually a lot of other ones. A lot of people think I'll spend less in retirement. But they're not, they're not accounting for increased medical costs. That's one thing we see a lot of is, you know, you might have a really sweet medical plan at work and you don't, some people don't realize just how much their employees, employers paying for their coverage.

• 36:46Speaker 01

  Do you, do you know why, uh, why people also miscalculate that I'll spend less in retirement?

• 36:51Speaker 02

  Why's that?

• 36:52Speaker 01

  Because we call, what do we just say? We say three months into retirement, six months into retirement, you get what?

• 36:56Speaker 02

  Depressed.

• 36:57Speaker 01

  You get depressed. And so what do people try to do when they're depressed?

• 37:00Speaker 02

  Spend that money.

• 37:01Speaker 01

  Retail therapy.

• 37:04Speaker 02

  Exactly.

• 37:05Speaker 01

  Retail therapy.

• 37:06Speaker 02

  I wonder what, they should do a study on the Amazon, uh, purchase orders after someone retires.

• 37:10Speaker 01

  It's the truth. It's when you're working, you can't be spending money. And now that you have all day to sit around, a bad habit that, that does develop is I have to spend money to be doing something meaningful. That's what I mean to say. We're start to develop either something that you're going to get paid to do, even if you're not making a lot of money. But instead of costing you money, it's maybe at least break you even or whatever it is, but find something that you don't have to be spending money. Now, if you say, Chris, you're crazy. I want to spend $800 on junk every month for the rest of my life and I can't spend that $800 now, then you just have to plan accordingly. Make sure that you have that excess income to be able to spend that retail therapy or whatever it is you want to do. And a lot of people can, but some people can't. And so have a plan to have purpose so that you don't

• 37:54Speaker 01

  fool yourself in thinking that, hey, I'm going to spend way less in retirement.

• 37:57Speaker 02

  Yeah. A good point made is retirement isn't a vacation. It's a major lifestyle shift because a lot of people say, I'll be happy just having free time, but to your point, that's not always the case. Uh, some people say, I'll just work a few more years. But did you realize 48% of retirees leave work earlier than planned? Often due to health or layoffs. And another big one that we see a lot in our community is having to take care of parents. You know, that people have to retire early and, and take the time to be able to spend time with their loved ones and help them through their, their golden years. And these are, these are things you have to think about.

• 38:31Speaker 01

  Yeah, and the one back to just, uh, happy just having free time. Unfortunately, the statistics and the studies are out there that, yes, you, you enjoy being able to garden for a few months and then it just kinda goes away and all of a sudden, now, now you have a new job gardening in your backyard and it was enjoyable for the first little bit, but, um, lack of purpose or structure can lead to boredom, anxiety and even depression. So, thinking that you're going to be happy just by having free time, you need to find purpose. You need to find something that you're going to put your hands to work in doing. And, uh, you know, sometimes, you know, people fall into those types of things, but, but most importantly, we should all be, try to be a little proactive in thinking,

• 39:14Speaker 01

  what are the things that I am going to do with my spare time to put myself, you know, to work and, and, that's been one of the biggest joys of my life of working with individuals that transitioned from a great career and worked hard and saved. Now they've transitioned and we've seen some people go on and do amazing things in retirement. Sometimes working harder and crazier hours.

• 39:35Speaker 02

  Serving more for their community or their church and their, their work. Yeah, they're working much longer hours.

• 39:39Speaker 01

  The World War II memorial downtown is one of our clients that put himself to work, um, in, in honoring, uh, that generation and raised, uh, uh, gobs of money in our community to, to, to put that, uh, memorial in place and like some different things like that, that I've been able to watch these individuals in retirement, find a purpose, find a something to pour themselves into. And it can really be a great season of life, but you have to be intentional.

• 40:03Speaker 02

  Exactly. And this isn't for our 40, 50, 60, 60, 70 year olds approaching retirement. This is not a doom and gloom session, but we, in our profession, it's like we see you're driving down a road and there's a big pothole coming up and you can't see it because you've just never thought about it. And that's all we're doing is reminding you of this, this big pothole so that you have a solution for it.

• 40:22Speaker 01

  Yeah, some others might say, well, I don't need a budget anymore. Now I'm retired and it's maybe even opposite because when you're on a fixed budget, when you're in retirement, a budget means even more because sometimes without knowing it, you think you're pretty strict with the budget, but there's occasional bonuses or this or that, or you get a pay raise and some of these different things is kinda

• 40:44Speaker 02

  Bigger tax returns because you're making more money, but now you're not making as much. But Chris, Chris, social security will cover me. Have you heard that before?

• 40:52Speaker 01

  Oh, yeah. And many overestimate their benefits as far as how far that will go. Social Security was never meant to be the sole source of income in retirement. Uh, man, I remember talking about this all the time when I very first got into the industry many moons ago. Back when I wasn't, I wasn't still trading.

• 41:09Speaker 02

  Back in my days.

• 41:09Speaker 01

  Yeah, I wasn't, I wasn't still trading a cabbage. What is it called?

• 41:13Speaker 02

  Garbage pail kit.

• 41:14Speaker 01

  Cabbage Patch Kids. That's my, that's, that's

• 41:17Speaker 02

  That's what you played with, Chris. That's okay.

• 41:18Speaker 01

  Yeah. Yeah, I just threw that out there. Just threw myself under the bus. But anyways, what I was gonna say is

• 41:24Speaker 02

  Glow worm?

• 41:25Speaker 01

  Yeah.

• 41:28Speaker 02

  I had a glow worm, dude. Anyway.

• 41:30Speaker 01

  All right. It just went off the rails. I have no clue what I was gonna say.

• 41:32Speaker 02

  Sorry, bud. My buddy, my buddy and me. I remember that. Oh, boy. Well, one thing for sure, that's what you pay an advisor for is to have these, these discussions. And the worst thing you can do is be in denial. And it's, I'll just worry about it when I, when it gets there. And that, that's absolutely the worst thing you can possibly do.

• 41:54Speaker 01

  Yeah.

• 41:55Speaker 02

  Whether you're talking to us or you're talking to another advisor, you want to make sure that you're thinking through all the different scenarios and that your, um, your retirement plan, everything is, is, is you're not just saving so you can shut it down and live on it. You have to make sure that your, your retirement nest egg, yes, you've built it, but now you have to make it last. And if it's super conservative, there's a chance that might not happen.

• 42:18Speaker 01

  So I remembered what I was saying. I remember doing some classes and studying the, you know, financial planning and different things many moons ago when I was getting licensed and it talked about that, you know, a solid retirement plan is a three-legged stool. It's a three-legged stool and one of the legs is social security income and the other leg is pension and the other leg is savings. So, back in the day, that was a solid financial plan. I have a little bit of social security, I have a little bit of pension and I have a little bit of my own savings. Well, unfortunately, most pensions are gone. Government pensions still exist. Social Security is a stressed system that some changes are going to have to be made. I'm not saying it's going to go completely away, but it could end up having some pressure

• 43:02Speaker 01

  on it in the future. So, you don't want to completely bank on nothing. I mean, you can bank on it, but not 100% possibly unless they make some changes. Savings in a plan is really what makes up the bulk of most of the people's retirement plans. So, focus on purpose, start to think about some things as far as what you're going to do with your time to fight anxiety, to fight that depression and have a good financial plan together.

• 43:28Speaker 02

  Great questions, guys. Keep them coming.

• 43:29Speaker 01

  Be smart, be safe and be money wise.

• 43:36Speaker 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.