7/22/25 Senior Tax Deductions, Nineteen13 NIL, and Energy Market Updates with Chad Hathaway

The Moneywise Radio Show and Podcast Tuesday, July 22nd 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_Management LinkedIn: Moneywise_Wealth_Management Guest: Chad Hathaway, Nineteen13 Collective & Hathawayy LLC. websites: www.nineteen13.com/ www.hathawayllc.com/

• 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. Money, money, money, money.

• 0:43Speaker 01

  Welcome to the Money Wise Show. 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, we're your hosts. I'm Sharad Waite and...

• 1:04Speaker 02

  Money. I had to finish up.

• 1:06Speaker 01

  Oh.

• 1:07Speaker 02

  Emily Waite.

• 1:08Speaker 01

  Right on pitch.

• 1:12Speaker 01

  Uh, hey, Em.

• 1:13Speaker 02

  Hey.

• 1:14Speaker 01

  We have a few listener questions and comments, and let's start the show out.

• 1:20Speaker 02

  Let's start it out. I'll start with the first one.

• 1:22Speaker 01

  Okay.

• 1:23Speaker 02

  "Hey, Money Wise. I'm Em Local and heard there's a new $6,000 bonus deduction for folks 65 and older that started this year. Do you know exactly how that works and how do I know if I qualify with my retirement income?"

• 1:37Speaker 01

  Great question, and we know a little bit about how this works. However, we'd always recommend you consult your tax professional, because we are not tax professionals, we're not CPAs, but we can tell you about what this is. And this is recent. This is part of the one big, beautiful bill that just passed, what, a few weeks ago?

• 2:00Speaker 02

  Yeah, it's like a senior bonus, right?

• 2:02Speaker 01

  This is a senior bonus, and this act creates a new $6,000 additional deduction for individuals who are age 65 or older. It's effective this year, 2025, and it goes through 2028. So this is just a three-year sort of tax break.

• 2:20Speaker 02

  Oh, it's a temporary thing.

• 2:20Speaker 01

  It's a temporary tax break for anybody that's over the age 65. And the way that works is it's called a senior deduction. $6,000, you can, if you're married, that there's two of you and you're filing jointly, that's $12,000.

• 2:36Speaker 02

  Oh, gotcha.

• 2:36Speaker 01

  So this is a significant deduction because essentially what happens is this is added on top of the already existing standard deduction that that individuals are all entitled to. Now, there are income limits for those who earn over $75,000, or if you're a married couple, $150,000. Then it phases out, it phases out completely at $175,000 for individuals and $250,000 for couples. So to say it another way is you can, you get the full deduction if you are single under $75,000 a year or married under $150,000.

• 3:20Speaker 01

  If you make more than that as a married couple, then it phases out completely after $250,000.

• 3:27Speaker 02

  Oh, interesting.

• 3:28Speaker 01

  If you're an individual, it phases out at $175,000. But that's still, that's a significant number of seniors that this is going to benefit.

• 3:36Speaker 02

  Okay, gotcha.

• 3:37Speaker 01

  Because the $6,000 deduction is separate from the already standard deduction that seniors already receive, which is the, um, standard deduction for married filing jointly is $30,000. And if you're married, it's 15, if you're single, rather, married filing separately, it's $15,000. Head of household, $22,500.

• 4:07Speaker 02

  Do, do all forms of income, like retirement income, count towards this?

• 4:12Speaker 01

  taxable income, yes, so it'd be

• 4:15Speaker 02

  like your pension, your 401k, all that kind of stuff counts.

• 4:18Speaker 01

  Yeah, yeah, income received from your 401k, your pension, dividends that are received, interest, income, that would all go towards your adjusted gross income essentially. And then whether or not, you know, you're within those thresholds is determines whether or not you can get that full 6,000, single or 12,000 for a married couple. That's a, it's a significant increase because for those who, say a married couple that is under $150,000 a year and is used to just getting the $30,000 standard deduction. Then there's another $12,000 on top of that. That's huge.

• 4:58Speaker 02

  It's like 30% increase? Am I doing math? Math is hard.

• 5:01Speaker 01

  Almost a 50% increase, yeah. Forty plus something percent.

• 5:06Speaker 02

  Okay.

• 5:06Speaker 01

  And

• 5:07Speaker 02

  Oh, I guess you're right, yeah.

• 5:08Speaker 01

  And, you know, this, this is going to, again, just be temporary. Now, the vast majority of Americans are just taking the standard deduction, which means they don't itemize their deductions. They don't, you know, include their interest on their mortgage, their medical expenses, let's say, their charitable contributions. You know, those things that you can normally deduct from your income when you're filing your federal tax return.

• 5:36Speaker 02

  Uh huh.

• 5:37Speaker 01

  90% of Americans just take the standard deduction. They just take that 30,000. Which means they don't have more than $30,000 of normal deduction. All of those things. And so now with this for seniors, at least seniors that are within that income threshold, it's even, it's even more so.

• 5:58Speaker 02

  Nice.

• 5:58Speaker 01

  Which, you know, it's good. That's good for those who, you know, don't have enough to itemize. And they're just taking that, that standard deduction. So, you know, we've seen, we've seen a pretty big increase in the number of Americans that are, are just taking the standard deduction. You know, that's because it's been

• 6:18Speaker 02

  Increase, you said?

• 6:18Speaker 01

  Yeah, yeah.

• 6:19Speaker 02

  Since when, like? In what, the last few years? Like, when did it increase?

• 6:24Speaker 01

  In 2018, for example, there were about 30% of the population were itemizing their

• 6:31Speaker 02

  I see.

• 6:31Speaker 01

  Their deduction. Now it's about 10%.

• 6:33Speaker 02

  Oh. Is it just because it's just easier?

• 6:36Speaker 01

  It's been increased.

• 6:37Speaker 02

  Oh, I see.

• 6:39Speaker 01

  It's gone up. And, and so, you know, and a lot of seniors don't have a lot of mortgage interest.

• 6:46Speaker 02

  Yep.

• 6:46Speaker 01

  And, which is one of, or charitable contributions, which are, you know, to the larger deductions that people usually, usually try to take.

• 6:53Speaker 02

  Oh, well, so that's cool. Well, so listener, if you qualify in those parameters, then you can take a look at that. And how would they, how would they go about doing that? What was, what would be their step, just when they're?

• 7:06Speaker 01

  Yeah, I mean, they talked to their tax professional, whoever's doing their taxes next year, that they just want to make sure that they're, you know, taking, taking advantage of either the standard deduction, or if they have enough itemized deductions, then they can do that. But that, you know, any individual can sort of start calculating what they have.

• 7:22Speaker 02

  Yeah, for next time.

• 7:23Speaker 01

  For next time. And this is already baked into it, so every tax professional will know about this, you know, deduction and

• 7:30Speaker 02

  Okay.

• 7:31Speaker 01

  And the limits.

• 7:32Speaker 02

  All right.

• 7:32Speaker 01

  Great question.

• 7:33Speaker 02

  Yeah, okay, so you ready to get to the next one?

• 7:34Speaker 01

  Yes.

• 7:35Speaker 02

  Have you had a chance to look over the new tax deduction for cars? Just wanted to see if you could break down the limitations and deductions.

• 7:42Speaker 01

  Yes, we, we, we've actually talked about this, I believe, in, in previous shows. And, um, and, you know, it's really interesting, the, the changes that are happening fairly quickly, much more than what happened in our early lifetime. There's a lot more changes to the tax code, including what we were just talking about, what can be deducted. And one of the, also, one of the provisions in the one big, beautiful bill is the potential to deduct car loan interest. So we were just talking about how people can, if they have enough interest on their mortgage, their, their real estate,

• 8:24Speaker 02

  Yeah.

• 8:24Speaker 01

  Then that's deductible. Well, this new provision is, also takes effect this year. You can Deduct up to $10,000 in qualified passenger vehicle loan interest during any given taxable year, starting this year in 2025. And this is also going to just last for three years.

• 8:44Speaker 02

  Is this for any car or there are specific parameters?

• 8:47Speaker 01

  Specific parameters and it is for new vehicles only. So, used cars do not qualify. It must be assembled. The car must be assembled in the United States. It doesn't mean it has to be an American car, but you'd be shocked at how many cars are assembled in the United States.

• 9:05Speaker 02

  I've heard that before.

• 9:06Speaker 01

  A lot of the popular models from Honda, Hyundai, Nissan, Toyota are assembled here in the United States. So, many of those would qualify. The easy way to find out if it's assembled in the United States is looking at the VIN number. You say VIN number, right? You just don't say VIN.

• 9:22Speaker 02

  I don't know.

• 9:23Speaker 01

  It's like ATM machine.

• 9:24Speaker 00

  What's your VIN?

• 9:25Speaker 02

  What's your VIN? Yeah, we talk about it all the time. What's your VIN?

• 9:28Speaker 01

  It's like ATM machine. You're saying automated teller machine, machine.

• 9:34Speaker 02

  Oh.

• 9:35Speaker 01

  And VIN is vehicle identification number, number.

• 9:37Speaker 02

  Well, just do what everybody does.

• 9:39Speaker 01

  Your VIN number, that's what I hear. VIN number must start in 1, 4, or 5. That will tell you whether or not it was assembled in the United States. So, that's kind of interesting. You know where to find the VIN number?

• 9:51Speaker 02

  I know where to find it on my app.

• 9:53Speaker 01

  Yeah, you can find it like on your insurance card usually.

• 9:56Speaker 02

  Oh, yeah.

• 9:56Speaker 01

  Is that what you were gonna say?

• 9:58Speaker 02

  No, I was gonna say on my app. No, I have an app for my car. It would tell me.

• 10:02Speaker 01

  Oh, yeah. That's right. It would say that.

• 10:04Speaker 02

  And what are the letters again?

• 10:06Speaker 01

  VIN.

• 10:07Speaker 02

  No.

• 10:10Speaker 00

  Well played.

• 10:14Speaker 02

  No, no.

• 10:15Speaker 00

  There's my new promo.

• 10:18Speaker 02

  The letters for the VIN.

• 10:20Speaker 01

  The numbers.

• 10:20Speaker 02

  The numbers.

• 10:21Speaker 01

  1, 4, or 5. Yeah, look it up because you have a Toyota RAV4. I bet it's assembled in the US.

• 10:29Speaker 02

  Oh, it's only showing me the last four digits on here. I'll have to look it up later.

• 10:33Speaker 01

  Yeah, the other way you can see it is there's a few places on your car, like on the driver's side door, like you open it up on the inside.

• 10:39Speaker 02

  There's like a sticker.

• 10:40Speaker 01

  There's a sticker and then also on your dashboard. It's usually you can like look through the windshield and down onto like the corner of your dashboard and you can see the number there. It also has to weigh less than 14,000 pounds.

• 10:54Speaker 02

  What?

• 10:55Speaker 01

  Yeah. That's because they're trying to eliminate like.

• 10:57Speaker 02

  The giganto.

• 10:58Speaker 01

  Big, I mean, I don't, even the big trucks aren't 14,000 pounds like they're trying like, like can't be a semi truck. You know, like a huge work utility truck.

• 11:07Speaker 02

  Can it be work vehicles?

• 11:09Speaker 01

  I.

• 11:10Speaker 02

  Like fleets of work car of.

• 11:12Speaker 01

  Yeah, I mean, now, now that's like a business deduction or a business.

• 11:14Speaker 02

  No, it's it's just, oh, I'm seeing here now. It says must be purchased for personal use without eliminate work vehicles.

• 11:20Speaker 01

  Yeah, cuz the work that they already get some deductions.

• 11:23Speaker 02

  They get the things. Okay.

• 11:24Speaker 01

  And then it has to be purchased between 2025 and 20 by the end of 2028. So that means you gotta buy the vehicle this sometime this year. And or, you know, by the end of 2028. And there are also some limitations on the deduction for income. Similar to what we were talking about, the senior.

• 11:45Speaker 02

  Oh.

• 11:46Speaker 01

  Deduction.

• 11:47Speaker 02

  Okay.

• 11:47Speaker 01

  The deduction phases out if your modified adjusted gross income is over a hundred thousand dollars for single people, 200,000 dollars for married couples. So it's a little bit easier to know or remember than the senior deduction.

• 11:59Speaker 02

  Okay.

• 11:59Speaker 01

  You reduce, your deduction is reduced by 200 dollars for every thousand dollars your income exceeds those thresholds. So after 100,000 for a single person, it starts to go down. Uh, 200,000 for a married couple, it starts to go down. So the deduct deduction is essentially eliminated completely for individuals that make, you know.

• 12:17Speaker 02

  It's basically dependent on your tax bracket. How much savings?

• 12:21Speaker 01

  Yeah.

• 12:21Speaker 02

  Right?

• 12:22Speaker 01

  The it it depend, yeah.

• 12:23Speaker 02

  Deduction, yeah.

• 12:25Speaker 01

  It depends on how much income you have, you know, how much of your taxable income.

• 12:30Speaker 02

  Yeah. Which is a tax bracket technically, isn't it?

• 12:33Speaker 01

  Not necessarily cuz some people can have a high income and no, are in the 0% tax bracket.

• 12:39Speaker 02

  Oh, geez. Oh, wah wah. Okay.

• 12:42Speaker 01

  I know, I know. Uh, qualifying vehicle types, cars, vans, minivans, SUVs, pickup trucks, motorcycles. Even motorcycles are eligible for, like you said, personal use only and only purchase loans qualified. Means you can't lease. Not lease payments. It has to be a purchase payments.

• 13:00Speaker 02

  Mm-hmm.

• 13:01Speaker 01

  And again, US car. So, very interesting, I thought.

• 13:06Speaker 02

  Yeah, that's a good question.

• 13:07Speaker 01

  Great question. Good time to recap it. It's gonna take, it's gonna take all of us a few years to get used to the new, some of these new rules and keep CPAs on their toes.

• 13:16Speaker 02

  Yeah.

• 13:17Speaker 01

  They earn their buck.

• 13:17Speaker 02

  Which they like to be on their toes.

• 13:19Speaker 01

  Oh, yeah. Yeah.

• 13:20Speaker 02

  Okay, we've got one more message here. You ready?

• 13:22Speaker 01

  You're ready.

• 13:23Speaker 02

  Catching up on the shows I missed. Chris and Seth are hilarious. But what is a slush fund? LOL.

• 13:31Speaker 01

  If Chris and Seth were talking, a slush fund, is it, is it like a Slurpee? Can you call a slush?

• 13:37Speaker 02

  I don't know. Maybe they meant slash fund?

• 13:39Speaker 01

  No, I think, I know what a, I would call a slush fund is like an emergency fund. A slush fund is like money that you can just use for unexpected things.

• 13:50Speaker 00

  We were talking about a rainy day fund.

• 13:52Speaker 01

  Rainy day.

• 13:53Speaker 00

  Sledge fund.

• 13:53Speaker 01

  There you go. Slush fund, rainy day fund.

• 13:56Speaker 02

  Is that a technical term or is this a Chris and Seth term?

• 13:58Speaker 01

  No, that's a, that's a slang term. You've heard slush.

• 14:01Speaker 00

  Financial slang.

• 14:03Speaker 01

  We've talked, we've probably used that term before, like, hey, we're gonna go on vacation, we have this slush money.

• 14:08Speaker 02

  Me and you personally?

• 14:09Speaker 01

  Yeah.

• 14:09Speaker 02

  No, you've never used that phrase before.

• 14:12Speaker 01

  We've never used slush money?

• 14:13Speaker 02

  Sharon, stop. Never just playing around.

• 14:16Speaker 01

  I'm not, I'm not just playing with you. I thought for sure it'd be something we would have.

• 14:19Speaker 02

  No.

• 14:19Speaker 01

  We would talk about, you know, like.

• 14:21Speaker 02

  Maybe in different terms. Never slush fund.

• 14:23Speaker 01

  No, well.

• 14:24Speaker 02

  But anyway, there you go.

• 14:25Speaker 01

  There's a slush fund.

• 14:26Speaker 02

  Cool.

• 14:26Speaker 01

  All right, let's take our first break of the day. When we come back, got some headlines to talk about. Plus, we're gonna have our guest later on coming on. Chad Hathaway from Hathaway LLC. We're Money Wise. Don't go anywhere.

• 14:35Speaker 00

  Don't forget, Money Wise is more than a radio show. We're an independently owned, local wealth management firm with 60-plus years of collective experience. Our financial advisors are here to help you, Kern County. Together, let's be smart, be safe, be money wise.

• 14:57Speaker 01

  Thanks for tuning in. We're Money Wise. We're your hosts today. I'm Sharad. That's Emily.

• 15:01Speaker 02

  Yeah, hello.

• 15:02Speaker 01

  Hey.

• 15:02Speaker 02

  Hey.

• 15:03Speaker 01

  Every once in a while, and it's been a little while.

• 15:06Speaker 02

  Yes.

• 15:06Speaker 01

  Money Wise puts on a public.

• 15:10Speaker 02

  Education. Yes, yes. We've got one coming up. Can I share about it?

• 15:14Speaker 01

  Share the deeds.

• 15:14Speaker 02

  Okay, great. It's Financial Basics for Teens. So, on Wednesday, August 6th, 5:30 PM, at the Bakersfield Racket Club, there's going to be a presentation and a Q and A about basics for finances, especially for teens, and the parents are welcome to join. They're going to talk about banking basics, budgeting, building credit, saving and investing. It's focused on teenagers ages 14 to 19 years old. There's going to be pizza and snacks. Again, that's August 4th at 5:30 PM, and you can call in here and RSVP if you'd like to join.

• 15:48Speaker 01

  That's right.

• 15:49Speaker 00

  I think that's a typo. It's pizza rolls.

• 15:51Speaker 01

  Pizza rolls?

• 15:52Speaker 02

  What did I say? Pizza snacks?

• 15:54Speaker 01

  Pizza snacks.

• 15:55Speaker 02

  I said pizza and snacks!

• 15:56Speaker 00

  Chicken nuggets for the kids.

• 15:58Speaker 02

  Chicken nugs!

• 16:00Speaker 01

  This is really cool. This is one of our advisors, Seth, who we were just talking about. Seth Perry is a Money Wise advisor. He was, as an advisor, also a high school economics teacher.

• 16:14Speaker 02

  Right.

• 16:14Speaker 01

  For many years. So, he's good.

• 16:17Speaker 02

  He knows how to speak the teen language.

• 16:19Speaker 01

  He knows how to talk to teens, yes.

• 16:20Speaker 02

  Yes, yeah.

• 16:20Speaker 01

  And he's very passionate about teaching young people about finance. And of course, parents can attend, but this is a great time for, or opportunity for parents to send their kids, learn about just the basics of banking, budgeting, you know, building credit.

• 16:39Speaker 02

  Yeah, that stuff starts early.

• 16:40Speaker 01

  How to invest and saving, yeah.

• 16:41Speaker 02

  You can understand it.

• 16:42Speaker 01

  It's at the Bakersfield Racket Club. So, we're doing this in partnership with the Bakersfield Racket Club, so they're promoting this to their members.

• 16:49Speaker 02

  Right.

• 16:50Speaker 01

  And, but you do not have to be a member of the Bakersfield Racket Club. Anybody can go.

• 16:54Speaker 02

  Yeah, it's open to the public.

• 16:55Speaker 01

  It's open to the public. So, again, you can RSVP. And or find out more information, go to MoneyWiseGuys.com, our phone number 661-847-1000. And we're happy to answer any questions you may have. This will be good. It's been a while and I know Seth has been really excited to put one of these on, you know, for a while. So it's great.

• 17:18Speaker 02

  We have one really quick message before we get to our guest. LOL, had me laughing. I'm gonna, and yes, as I deal with people I work with, I work in HR and people are always telling me, here is my social security, SSN number. I'm like, why did you say number twice? I guess it's an HR joke. So you're in good company, Jared. Even there are people out there. So, VIN.

• 17:43Speaker 01

  That we can ask our guest, Chad. Hey Chad, how you doing, man?

• 17:47Speaker 03

  Hi.

• 17:47Speaker 01

  Hey, nice hat.

• 17:48Speaker 03

  Thanks.

• 17:49Speaker 01

  The Sentinel, the Centennial.

• 17:51Speaker 03

  Centennial, yeah.

• 17:52Speaker 01

  Oh, is that Bakersfield?

• 17:53Speaker 03

  JG Boswell.

• 17:54Speaker 01

  Oh, how about that?

• 17:55Speaker 03

  Yeah.

• 17:56Speaker 01

  Your neighbor up on the hill, right?

• 17:58Speaker 03

  Yeah, my buddy.

• 17:58Speaker 01

  Yeah.

• 17:59Speaker 03

  Good dude.

• 17:59Speaker 01

  Yeah, quite the landowner that guy is.

• 18:03Speaker 03

  He's got a few acres.

• 18:05Speaker 01

  No kidding, Chad?

• 18:06Speaker 03

  Yeah.

• 18:07Speaker 01

  Do you say ATM machine?

• 18:10Speaker 03

  Yes.

• 18:10Speaker 01

  Or, and VIN number?

• 18:12Speaker 03

  Uh, yeah.

• 18:14Speaker 01

  Isn't that, it seems repetitive, doesn't it? But we still kind of have to say it.

• 18:17Speaker 03

  VIN for like a car, right?

• 18:18Speaker 01

  Yeah, yeah.

• 18:19Speaker 03

  Yeah, absolutely, why not?

• 18:20Speaker 01

  Because it's vehicle identification number and then you're saying number. So you're going VIN number, number.

• 18:25Speaker 02

  Vehicle identification number, number. Or?

• 18:29Speaker 01

  Automatic teller machine. Why don't you just say ATM?

• 18:34Speaker 02

  But you know what I said, Chad, is this is what we do. Let's just accept it.

• 18:37Speaker 03

  I don't even know my PIN number.

• 18:39Speaker 01

  Good. Then it's very secure.

• 18:41Speaker 03

  Yeah.

• 18:41Speaker 01

  Even you don't know it.

• 18:44Speaker 03

  But money still comes out. I don't understand.

• 18:47Speaker 01

  What?

• 18:47Speaker 03

  Yeah, it just comes out.

• 18:49Speaker 01

  Look into that, man.

• 18:50Speaker 03

  No.

• 18:50Speaker 02

  He's got some bio identification.

• 18:52Speaker 01

  I was just gonna say, I bet your wife knows your number.

• 18:55Speaker 03

  She knows it. She's our own.

• 18:56Speaker 01

  You have teenagers.

• 18:58Speaker 03

  I do.

• 18:58Speaker 01

  Right?

• 18:59Speaker 03

  I do.

• 18:59Speaker 01

  Three of them? No, well.

• 19:01Speaker 03

  Well, yeah, three. 117 in boot camp right now.

• 19:04Speaker 01

  What?

• 19:05Speaker 03

  Yeah, yeah, he's five weeks, six weeks in right now.

• 19:08Speaker 01

  Boot camp, like boot camp?

• 19:10Speaker 03

  Like Coast Guard boot camp.

• 19:11Speaker 01

  No kidding, they gave him at seventeen?

• 19:13Speaker 03

  Yeah, he can't, he got emancipated, pretty much.

• 19:16Speaker 01

  You got a sign off saying this?

• 19:18Speaker 03

  Yeah, yeah.

• 19:18Speaker 01

  How about that?

• 19:19Speaker 03

  I know, it's uh.

• 19:20Speaker 01

  Well, congratulations.

• 19:21Speaker 03

  Thank you, thank you.

• 19:22Speaker 01

  How is he doing?

• 19:23Speaker 03

  You know, you can't really talk to him. I send him a letter, uh, once a week and I try to gather as many people in the family and I drop it in a little FedEx so we can send him as many at a time. I heard from him the first time, uh, on Saturday for like two minutes.

• 19:35Speaker 01

  Wow.

• 19:35Speaker 03

  And, uh, I think, you know, he's having, uh, had a little bit of a rough go. But he's, um, you know, the last letter I got, I mean, he's tear jerking because it's the first time ever I've been completely kind of cut off from my.

• 19:47Speaker 01

  Right.

• 19:48Speaker 03

  And I guess going, it's not like going away to, I guess going away to college is, is emotional, but when you drop him off for boot camp, it's probably one of the most emotional things I've ever been through in my life.

• 19:57Speaker 01

  Yeah.

• 19:57Speaker 03

  And it was tough, but, you know, I tried to send him a letter and I started sending packets and he finally won a little letter, said, like, Dad, don't send packets. I have five minutes a night to read a letter.

• 20:08Speaker 01

  He's getting out of business, yeah.

• 20:10Speaker 03

  Yeah, he's good. He's, you know, he's, he's seventeen. He's always been a kid that pushed the lim, he wants to be a, a rescue swimmer. And, uh, wants to jump out of helicopters and save people. That's his dream and, and he's, he's, I tell you what, he's, he's well on his way. He got his assignment last week. He'll be in, uh, Alameda, which is Oak Town.

• 20:29Speaker 01

  Alameda?

• 20:29Speaker 03

  Alameda.

• 20:30Speaker 01

  Down south and like?

• 20:31Speaker 03

  No, up north. It's Oakland. It's an island. It's a dedicated island. Um, it's a coast guard island. Yeah. It's a big base, biggest base on the west coast.

• 20:39Speaker 01

  Nice.

• 20:39Speaker 03

  Yeah.

• 20:40Speaker 01

  So that's nice. He won't be too far from home.

• 20:42Speaker 03

  No, and he's gotten a mentorship program where he gets to train for like two and a half hours. He gets paid to work out like for six months until he can go to A school and the rescue swimmer program is kind of like the, I would say Navy SEAL equivalent in the, in the coast guard. And then he'll get, uh, assigned, if he gets through A school, which attrition rate is normally seventy, eighty percent.

• 21:00Speaker 01

  Whoa.

• 21:00Speaker 03

  If you're not in this training program, but he's a water pole guy and, and, you know, good athlete, crazy. I mean, the kid is just will jump a motorcycle over anything and he was always a kid that pushed the limits. I think that's what's kind of why boot camp's been tough for him because he's pushing the limits.

• 21:15Speaker 01

  Yeah.

• 21:16Speaker 03

  And they don't let you push.

• 21:17Speaker 01

  Yeah, right.

• 21:18Speaker 02

  Interesting.

• 21:19Speaker 03

  And then my last daughter went back to Tennessee this morning at six o'clock.

• 21:23Speaker 01

  Oh dang.

• 21:23Speaker 03

  So yeah, it's been a.

• 21:24Speaker 02

  It's a hard, it's a different transition when your kids start leaving home.

• 21:28Speaker 03

  Yeah.

• 21:28Speaker 02

  It's a whole different thing.

• 21:29Speaker 01

  Yeah, and you got, you got the, I, I want to say a baby, but the, she's not.

• 21:34Speaker 03

  She's two.

• 21:34Speaker 01

  Yeah, two, come on.

• 21:36Speaker 03

  And then my wife left this morning to a horse show in Nevada, so it's bachelor week and my, my daughter's staying with my mother-in-law, so.

• 21:41Speaker 01

  Dang Chad.

• 21:42Speaker 03

  Woo.

• 21:43Speaker 01

  Look at you, you're a serious empty nester.

• 21:47Speaker 03

  So.

• 21:48Speaker 01

  You know, Justin in our office, an advisor, his son is in boot camp right now also, but with the Navy.

• 21:55Speaker 03

  Mm-hmm.

• 21:55Speaker 01

  And he's been in three or four weeks now and he says the same things he's used, like it's very emotional. You know, saying goodbye and then the communication is super sparse, but you know, that, that boot camp experience is there to like break them down and rebuild them.

• 22:12Speaker 03

  That's exactly where we're at now. He's, he finally got through the last breakdown week and he had some additional disciplinary actions and.

• 22:18Speaker 02

  Oh boy.

• 22:18Speaker 03

  And, and I think he said, Dad, we're moving, I'm moving logs around from monument to monument and writing a report about it.

• 22:28Speaker 03

  And he's like, but I finally got through and now we went on a, like a three mile march on the beach and he's in Cape May, New Jersey.

• 22:35Speaker 01

  Oh wow.

• 22:35Speaker 03

  Dad, we gotta, it's beautiful. I'm like, okay, I can't wait to see it.

• 22:40Speaker 01

  Yeah.

• 22:41Speaker 03

  We're in Catalina right now.

• 22:45Speaker 01

  West coast, baby. Wow, that's really cool Chad. Yeah, congratulations on all of that. You, you brought some information with you, but right away I was like, how did I not know about nine thirteen?

• 22:56Speaker 02

  Oh boy.

• 22:57Speaker 01

  Nineteen thirteen.

• 22:57Speaker 03

  Thanks for buying a shirt. I saw that today.

• 22:59Speaker 01

  How did you see that? I just barely did it.

• 23:01Speaker 03

  Well, you know, these days, you know, with Stripe and Wix and all these tools, the websites.

• 23:06Speaker 01

  Dang, you got your thumb on the pulse.

• 23:07Speaker 02

  You get a little notification?

• 23:08Speaker 03

  I get a notification.

• 23:09Speaker 01

  Right away, I was like nineteen thirteen. I looked at the website. I was like, oh, this is, this is dope. This is like, how is this not been available? Well, we had to explain what it is, first of all, but that's why I bought a shirt.

• 23:21Speaker 03

  It's a, it's a first ever, ever junior college collective, NIL collective, which allows players.

• 23:28Speaker 03

  Athletes to capitalize on name, image and likeness, which is now a law and we're different than NCAA, we're a lot smaller, but we're dedicated to Bakersfield College and just started this about four months ago, doing really well. We've got eight athletes now under contract.

• 23:45Speaker 01

  Sweet.

• 23:46Speaker 03

  That's great.

• 23:47Speaker 01

  And all sports?

• 23:48Speaker 03

  All sports. So we've got a women's wrestler, a men's wrestler, we've got men's basketball, just got some funding for women's basketball, football, we've got a lot of funding for, we've got five football players, three from Georgia and one from Northern California and one from Southern California. So we were able to actually augment and for that to happen so late in the game and to be able to make an impact immediately, it's been really cool.

• 24:17Speaker 01

  Yeah, because this law changed, that's a law, a rule, I guess, changed where the college players can now get paid essentially. It's only been two years, maybe?

• 24:26Speaker 03

  It actually goes back about five or six, but it's been this ever-evolving. Yeah. And so for, it also gets your head around it. And I've got great partners. I've got, you know them all, I've got Scott Beldon and I've got Patrick Wade.

• 24:38Speaker 01

  Scott's great.

• 24:39Speaker 03

  And I've got Paul Pavlatic.

• 24:40Speaker 01

  Oh my gosh, yeah. You've got a great team. So are you like the board?

• 24:45Speaker 03

  Yeah, well, we all own a quarter of it and it's not, it's a pass-through entity. So basically the collective serves as a place to pass through. We're completely separate from the college, no affiliation from the college. It's not allowed. So we're a complete separate entity and we deal in contract with the athletes directly. We've got partners with a great media group out of Florida, Tallahassee, Florida, who handles Florida State's collective.

• 25:08Speaker 01

  Nice. Are they, so they deal with the, what do they do?

• 25:14Speaker 03

  The media, marketing, social media, stuff like that that we don't know how to do.

• 25:18Speaker 01

  Connecting with athletes.

• 25:19Speaker 03

  They build our website. They, no, we do, I communicate now with the athletes myself. I'm the representative of the collective.

• 25:25Speaker 01

  Wow.

• 25:26Speaker 03

  So, yeah. You got just some extra time to do that?

• 25:29Speaker 01

  Yeah.

• 25:30Speaker 03

  No, it is. And I told my wife, I go, the goal is to get this thing big enough to where we can bring somebody in that can really Run it. Run it and be responsible. Because it's important, it can, you know, our sole goal is we want, we want to give kids opportunities they would not, you know, normally had, and also give coaches the ability to put together a winning team. And we know how important winning is to a program, how important an athletic program is to a college. In fact, when we first started this, six, eight months ago, when we were talking to the president, he said, I can have the best math department in the country.

• 26:03Speaker 02

  Right.

• 26:04Speaker 03

  And nobody would know. But if my basketball team or my, my football team is a national champion, everybody knows and it brings attention to the college. And that's our goal is to bring Bakersfield College Athletics back to prominence and, and be able to give these coaches the tools they need. And it's hard, you have to educate people because it's a whole nother world. In fact, when we first started doing this, everybody thought we were starting a marijuana collective. And I'm like, no.

• 26:25Speaker 01

  Because of the name?

• 26:27Speaker 03

  Yeah, the collective, the collective thing, you know, the whole word collective.

• 26:30Speaker 01

  Oh, I see.

• 26:31Speaker 02

  You and your partners, I know you played collegiate athletics, did your partners as well? Like, what, what, where's the heart coming from behind this?

• 26:38Speaker 03

  Um, you know, Patrick is an adamant supporter, like me, grew up going to B C football games. And B C gave me a second chance in athletics and, and elevated me to go to Fresno State. And, you know, Scott Beldon is a lawyer in town, very successful lawyer who is an Alabama guy, has no affiliation with Bakersfield College, you know, and, and just cares about the community. So he was, and that adds a really nice touch because when we're talking, when we're going through the rules, he often knows the rules better than most people in the County Community College Association.

• 27:10Speaker 01

  Because he's just like a sports fan, college sports fan.

• 27:12Speaker 03

  Yeah. And he's just a, you know, a, just an all-around pro Bakersfield guy, and he can see the value in it. And Paul's been, you know, with senior class president, or ASB president at B C and still involved, and Pat's involved with the foundation. So we're all tied to B C one way or another.

• 27:26Speaker 01

  Yeah. Scott was the gentleman of the year.

• 27:28Speaker 03

  Yes, he was.

• 27:29Speaker 01

  The gentleman, the gentleman of the gentleman.

• 27:32Speaker 03

  And the October, Mr. Oktoberfest.

• 27:34Speaker 01

  Oh, yeah, Mr. Oktoberfest. Yeah, that's right. He took that, you were, you were the previous year.

• 27:38Speaker 03

  That's right. I handed down the throne to him. So, but anyway, it's a great opportunity for Bakersfield College. We've had tremendous support from the community. I think it's going to get better and better. I think we just need, we've had a little bit of turnover at the, at the school level. I mean, from athletic director to president, we've got all the people we're dealing with. So, but the good thing is, is we're not, we're not affiliated with the college.

• 28:04Speaker 01

  And you can't even be affiliated. So all junior colleges, or is it also four-year colleges? They don't, they have to have, keep separation?

• 28:11Speaker 03

  Yeah, we're, we're in a separate, actually, we're different because the NCAA now has a lot more collaboration between the collectives and the school. Three C2A, which is California Community College Athletic Association, they're just a burgeoning new, I mean, it's such a small level, which I think is exciting for us because we can play in a big way at a small level.

• 28:30Speaker 01

  Right.

• 28:30Speaker 03

  And because of, you know, you go to a Cal State Bakersfield, you know, no offense, but you're playing at a whole nother level and you're competing against a lot of money.

• 28:37Speaker 01

  Right.

• 28:38Speaker 03

  And so we're, we're hoping to build it out to, to show value to corporate partners if we can do that.

• 28:42Speaker 02

  Such a great thing for Bakersfield.

• 28:44Speaker 03

  Yeah, it's cool.

• 28:45Speaker 02

  B C is such a great school.

• 28:47Speaker 01

  Oh, yeah. I, I went, I graduated from B C, a huge fan of the Renegades. Our son, Charlie?

• 28:54Speaker 02

  Yeah.

• 28:54Speaker 01

  Our youngest son graduated from B C.

• 28:57Speaker 02

  Right.

• 28:58Speaker 01

  And we've, just, everybody I've talked to that's gone to B C has spoken positively of it. Maybe I haven't talked to enough people, but everybody's like, this is the best. Like, the professors are great. Just the atmosphere and the campus is growing. Is, are there other junior colleges that have it? Or?

• 29:14Speaker 03

  Well, the, there are not. You know, any individual player in, in any level can, can get an NIL contract with somebody if they want to go do it on their own.

• 29:23Speaker 01

  Yeah.

• 29:24Speaker 03

  There's, California has some of the most favorable laws for pay-for-play contracts. And so, not pay-for-play, it's not pay-for-play, it's pay-for-name, image, and likeness services.

• 29:34Speaker 01

  Right.

• 29:35Speaker 03

  So, our contracts aren't pay-for-play. It's basically, we have social media arrangements with them. We have appearances that we'll schedule, have interactions with our donor base. Things like that is what we can do in return.

• 29:47Speaker 01

  You can't, they can't actually get paid money?

• 29:49Speaker 03

  They do get paid money.

• 29:50Speaker 01

  And they can get cash?

• 29:51Speaker 03

  They, they get cash, paid to them to help pay their bills or whatever. And these aren't big, these aren't big contracts. They're junior college contracts. I think the average contract is, you know, for a year is around $3,500 to $4,500 a year. So it's not a big one.

• 30:05Speaker 01

  I see. But it's enough, it, it helps, you know?

• 30:07Speaker 02

  Every little bit helps.

• 30:08Speaker 03

  A majority of the contracts. In all levels of athletics are relatively small. It's just you hear about the gigantic ones.

• 30:16Speaker 01

  Yeah.

• 30:16Speaker 03

  That really move the needle, but it's, it's, it's, um, it's so impactful at this level and I think will become even more impactful. Our biggest problem is now we think there's a lot of other schools that really wish what we had. So they're looking, they're gunning at us from every angle they can.

• 30:31Speaker 01

  Yeah.

• 30:32Speaker 03

  And, and you know, we got our stuff locked tight and that's what we've done from the beginning because we know there's going to be other schools that just can't, don't have a community like Bakersfield.

• 30:40Speaker 01

  Right.

• 30:41Speaker 03

  We all love this town. We all support it.

• 30:43Speaker 01

  Yeah.

• 30:43Speaker 03

  In so many different ways. And you know, there's not a, a single community college in the state. In fact, we use the, the community college, uh, uh, Athletic Association for California. Hired one of the best, uh, collective advisors in the country, signed him on a contract. And we worked with him directly when we put this thing together.

• 31:01Speaker 01

  Nice.

• 31:02Speaker 03

  And he said to us, said, you're further ahead than a lot of D1 programs that I work with.

• 31:05Speaker 01

  Wow.

• 31:05Speaker 02

  Wow, that's great.

• 31:06Speaker 03

  And so it's really meaningful after we got it all, everything rolled out, got it going, got our structure going. And so we were really lucky that the, the California Community College Athletic Association actually paid for this consultant because it gave us, we didn't have to pay for him.

• 31:19Speaker 01

  Oh, that's great.

• 31:19Speaker 03

  And he was able to help us out, to guide us in the right direction. That's his job to do it everywhere in California. Anybody in a community college in California that wants to do it, can do it. We didn't have to do a, a all sports in, deal. We could have done an inclusive, single sport, but we felt it was important that we included every single, we even have rodeo, which actually isn't even a sanctioned three C to a sport.

• 31:41Speaker 01

  They have like a club, like a rodeo club on campus?

• 31:43Speaker 03

  We have money coming in for rodeo. It's like.

• 31:45Speaker 01

  That's sweet.

• 31:45Speaker 03

  It's rodeo is governed by a different, uh, uh, it's like a national collegiate rodeo association or something.

• 31:51Speaker 01

  Yeah.

• 31:51Speaker 03

  So they're, they're a different governance. So, but it's, it's something that's been, it's been fun. I mean, it, it's been so much fun. I, I equate it to playing like fantasy football.

• 31:59Speaker 01

  How long have you?

• 32:00Speaker 02

  That's awesome.

• 32:00Speaker 01

  When did this start? When did you start doing this?

• 32:02Speaker 03

  We started putting it together about eight months ago.

• 32:05Speaker 01

  I can't believe this has, I didn't even, I had no idea.

• 32:07Speaker 03

  We had our first.

• 32:07Speaker 01

  We need to get together more often. I've been thinking about you a lot, you know, I know your kids are leaving and all that stuff.

• 32:12Speaker 03

  It's been a busy summer.

• 32:13Speaker 01

  And, yeah, you're busy, but, um.

• 32:16Speaker 03

  For all of us.

• 32:16Speaker 02

  You've been busy too, yeah.

• 32:18Speaker 01

  We're all busy.

• 32:18Speaker 03

  You're busy.

• 32:19Speaker 01

  Yeah, but this is, this is pretty dang cool.

• 32:22Speaker 02

  Very, very cool. It's such a testament to people in Bakerfield who just really care about the community and just want to do good things for it.

• 32:29Speaker 03

  Absolutely.

• 32:30Speaker 02

  Yeah.

• 32:30Speaker 01

  Just like four dudes that just care about the community and.

• 32:34Speaker 02

  To make, make it better as a whole.

• 32:35Speaker 01

  Yeah.

• 32:36Speaker 03

  It's, we have people that donate 25 bucks a month. Uh, we have people that donate big checks. We have people that, that do all different types of things and that's what I like about it is it's so inclusive and all those little people add up and, you know.

• 32:47Speaker 01

  Yep.

• 32:48Speaker 03

  It continues to add up and, and it's meaningful. And then we can sign more contracts because we obviously can't, worst thing you can do as a collective is not have the money in the bank.

• 32:57Speaker 01

  Right.

• 32:57Speaker 03

  But, but you really, uh, it's an inclusive deal. And then as, as the seasons start to roll on and we have tailgating and stuff like that going on, hope to build it. People don't understand it. A lot of people don't agree with paying players.

• 33:10Speaker 01

  I, I was gonna ask you your opinion on that because this is a fairly recent change in college athletes.

• 33:17Speaker 02

  It's having some ripple effects.

• 33:18Speaker 01

  It was controversial, like you said.

• 33:20Speaker 03

  Very controversial.

• 33:20Speaker 01

  Yeah, because it's like, people felt like it was gonna change the, the purity or something of the, I don't know. What was, what was your opinion of it before?

• 33:30Speaker 03

  What we, well, I don't have necessarily opinion of what it should be. I just know what the reality is. And the reality is, is this is what's going on. And if you want to compete and you want to be better, you want to win and you want to be in the game, you gotta participate in this. And if you don't, you're not.

• 33:46Speaker 01

  Yeah.

• 33:46Speaker 02

  Uh, Chad, we've got a, a message in for you.

• 33:49Speaker 03

  Oh.

• 33:49Speaker 01

  Yeah.

• 33:49Speaker 02

  Where does the money raised go to? And is it like an off-campus booster club that we can assist with? That would be cool to have a monthly or annual cost for a group of us to be a part of. Very cool. Thank you for sharing.

• 33:59Speaker 03

  Thank you. Um, our website's, uh, nineteen, the word nineteen one three dot com. And everything is our facts. You can have any question you have is, is on the website. Um, we are a, a separate, we're actually a limited liability company. We're separate. We're not affiliated with the college in any way whatsoever. That's, that's not allowed. Um, and, uh, we're solely, um, a pass-through entity, literally. So the money that, like, right now, we stay contracted. So if a dollar comes in. It goes out to a player and we gather information from from coaches and gather information from the community and we go to contact those individual players and we enter into individual contracts for those players. We have eight eight contracted players right now.

• 34:43Speaker 01

  And that is a way that the coaches can, a way that they can recruit?

• 34:48Speaker 03

  They can say we have their collective. They can't do, enter any kind of transactional conversation with these kids, but they can provide information to us.

• 34:56Speaker 01

  Yeah, they can say-

• 34:57Speaker 03

  So when a coach calls me and says, "Hey, I know, this is an informational call only."

• 35:01Speaker 01

  Yeah, yeah.

• 35:02Speaker 03

  And then we take it from there. But a coach can say, "Hey, I like these guys. I like this gal. I like this person. I like that person. This person may need something. This person may not." But they cannot enter into any kind of, they can't do any dealings on our behalf.

• 35:14Speaker 01

  Right.

• 35:14Speaker 03

  Everything that we do with coaches is informational.

• 35:17Speaker 01

  Right.

• 35:17Speaker 03

  Only transactional, we handle that separately.

• 35:19Speaker 02

  That's very cool. It looks like on the website, Chad, you can make a one-time donation, a monthly, a yearly, regular donation if people want to get involved. And the website is, the word spelled out 19 with the number 13 after.

• 35:33Speaker 03

  That's correct. That's your B C was founded.

• 35:35Speaker 01

  1913.com. 19 is spelled out.

• 35:38Speaker 02

  The word 19 and then 13.

• 35:39Speaker 01

  It's, I would, like I said, I just bought the shirt on there. There's like, there's swag that you can buy. There's a shop, shop, and they're cool. Good. It's got the design, you know, the 1913. But it was very intuitive. The website was easy.

• 35:51Speaker 03

  Thank you.

• 35:52Speaker 01

  Wasn't, there wasn't too much information. Easy to click on there and become a donor. So whoever you're working with on that, they did a good job.

• 35:59Speaker 03

  Yeah, we're, we're, we're actually just launched our first video of a, it was a player we brought in, he came from Fresno and it was his move-in process to his apartment.

• 36:11Speaker 01

  Oh, cool.

• 36:11Speaker 03

  And we just did, you know, all the social media marketing, you know, we use Hey Orca, which is what that, our media company does. And we, we had, you know, we had to work with them to gather foam and material and stuff like, which is a whole new world for me. I'm an oil guy, right?

• 36:24Speaker 01

  Yeah, right.

• 36:25Speaker 03

  I'm learning about all, how this all comes together. Like the shirts and stuff, we just, I designed those. And we just had the logo dropped in and as you know, there's so many with the Amazon world, there's so many pass-through deals that-

• 36:37Speaker 01

  Yeah.

• 36:37Speaker 03

  You just pass it through.

• 36:39Speaker 01

  Yeah.

• 36:39Speaker 03

  And you can create things. And I, I just, with the right guidance and help, it really was, was instrumental for us to get going so quickly.

• 36:46Speaker 01

  Yeah.

• 36:47Speaker 03

  It's great.

• 36:48Speaker 01

  Your process of deciding which athletes like, you know, are deserving of this, how do you do that?

• 36:57Speaker 03

  Well, a lot of it's, um, is feedback. I mean, what does a team need? Like, what, what, what does a team need? What, like, we know, for example, uh, men's basketball has a certain need for a certain type of player and a certain player that they like, but that's up to us if we can get them or not. We know football has certain needs. We know, like, for wrestling, for example, we knew there are kids that had more financial need, but we didn't have nearly as much money in the wrestling budget because it's all dependent. When you make a donation, you can tag whatever sport that you want to donate to. And the bulk of the money has come in, it's come in for football and bulk of the money, other, other big chunk is from basketball, um, men's basketball.

• 37:38Speaker 03

  But it can be for anything. And so I guess when we go into a, talk to a coach, like, where are your needs? You know, what, tell me what your needs are. Tell me what player, type of players you're looking for. You're allowed to recruit. They, they, they go out and recruit and they talk to kids and they can give us that information. That is perfectly legal.

• 37:54Speaker 01

  Yeah.

• 37:55Speaker 03

  Otherwise it'd be a guessing game and it'd be a complete mess.

• 37:57Speaker 01

  So to our listeners, our listeners' comment or question, it's, the difference between this and a booster club.

• 38:04Speaker 03

  Yeah.

• 38:04Speaker 01

  Is a booster club is just gonna be, like, they can raise funds to, like-

• 38:08Speaker 02

  Just for that particular school.

• 38:10Speaker 01

  Well, I'm not sure.

• 38:11Speaker 03

  It's, most of the time booster clubs are affiliated with the school. Um, and a booster club can raise money for, um, they can raise money for, um, like, sweatpants or uniforms or, or helping pay for coaches' salaries. If they, assistant coach, they can do lots of different things on their own.

• 38:29Speaker 01

  Right.

• 38:29Speaker 03

  I think most fundraisers, uh, uh, booster clubs and stuff like that are preferred to run through the foundation of Bakersfield College. Um, because they have the, all the, the layering and stuff that's required.

• 38:39Speaker 01

  Right.

• 38:39Speaker 03

  We're totally different than a booster club.

• 38:40Speaker 01

  And a booster club can't, can't give financial support to athletes.

• 38:45Speaker 03

  No, they cannot.

• 38:47Speaker 01

  Right. That's, that's a pretty big, big difference, you know?

• 38:51Speaker 03

  Yeah, we're governed by a, a different set of rules.

• 38:53Speaker 01

  Yeah. And-

• 38:56Speaker 01

  Dang, I just think this is the coolest thing.

• 38:58Speaker 03

  It is cool.

• 38:59Speaker 01

  Yeah. Is there anything else about, you went on Stephen's show, right?

• 39:03Speaker 03

  Yeah.

• 39:03Speaker 01

  ESPN, we're on ESPN.

• 39:04Speaker 03

  Then Stephen, Greg Kerr, you know, Stephen's been a great resource for us.

• 39:08Speaker 01

  Greg is awesome.

• 39:09Speaker 03

  Stephen really helped us get rolling at the beginning and get the word out. But Greg was good, Stephen's been great. The California and all the news stations were really participated well in our in our press conference at Luigi's when we first got this thing going.

• 39:23Speaker 01

  Yeah.

• 39:23Speaker 03

  There were about 50 or 60 people we did a special invite to the gentleman. We had him there for a night to do an informational.

• 39:29Speaker 01

  I didn't see that invite.

• 39:30Speaker 03

  It was out there.

• 39:31Speaker 01

  No.

• 39:32Speaker 03

  That's okay. That's okay. That's okay.

• 39:34Speaker 02

  It's okay. I wasn't on the list either.

• 39:36Speaker 01

  Oh, we all know why.

• 39:39Speaker 02

  Exactly. Do you want to?

• 39:45Speaker 03

  Yeah.

• 39:46Speaker 01

  What were you gonna say, Em?

• 39:47Speaker 02

  I was just gonna say, we might want to let Chad talk about some oil for a bit unless you're.

• 39:52Speaker 01

  You want to talk about oil, Chad?

• 39:54Speaker 03

  You know, I'm cool with that. Yeah, let's talk about oil.

• 39:56Speaker 01

  All right, let's talk about oil.

• 39:57Speaker 03

  It's my true love.

• 39:58Speaker 01

  That and Bakersfield College sports. So, yeah, oil is shaky. Right now, trading 60, around $66 a barrel.

• 40:09Speaker 03

  Yeah, yeah.

• 40:10Speaker 01

  WTI at least. That is pretty shaky.

• 40:12Speaker 03

  It's been up and down. I mean, last month when I was on the show, it's like $5 lower than this. You know, the market just typically overestimates what OPEC can do. And what happened last month is, you know, everybody thought the market was going to be flooded. And then we have more geopolitical risk now coming out of Russia. I mean, Russia produces a lot of crude and exports a lot of crude.

• 40:36Speaker 01

  Yeah.

• 40:36Speaker 03

  We still have Iranian embargoes going on, Venezuelan embargoes going on. But I think everybody thinks OPEC, the Organization of Petroleum Exporting Countries, that's a, represents about 30%. And I'm not spot on, but close to the market. They think they can turn this taps on and everything can just flow crazy like easy and it's not that. It's not the reality isn't there because people haven't been investing in infrastructure for years. And we talk about this in the show all the time is today's investment will pay off five years from now or six years from now.

• 41:07Speaker 01

  It'll start paying off, right? I mean, am I, am I correct on that?

• 41:11Speaker 03

  Absolutely.

• 41:12Speaker 01

  You're not getting your money back for, you know, four to seven years after that.

• 41:17Speaker 03

  You look at what's going on in Guyana right now, like with Chevron, if you probably heard about in the news, the Chevron and Hess merger went through. Our acquisition went through and ExxonMobil had a big discovery, one of the biggest discoveries in the last 15 years. And it was on offshore Guyana and that had been in the works for a decade plus. And then to get it online, to get it producing, it takes a long time to do that. And with depressed pricing or insecurity in any kind of market, that delays it. And it puts it on hold and shifts and our business has always been driven by the price of oil. And so that's a big thing. Here it's been driven more by regulatory pressure, which things.

• 42:00Speaker 01

  Here in California.

• 42:00Speaker 03

  Here in California, things may be getting better soon.

• 42:03Speaker 01

  Yeah, I'm starting to sense that. I'm starting to sense, I don't know what is going on with Governor Newsom, but there like there was the other, the SEQA. There's some backtracking on SEQA.

• 42:15Speaker 03

  Yeah, well, we've had the CIR in Kern County that's been locked up and tied up in court for almost a decade now, it seems like. And it's that, that was our, our ability to drill and do things, activities in the oil fields. And that's been taken away. And I think the state, the CEC, which is the California Energy Commission. Is now taking heed that we've got a real problem on our hands. We've got, you know, two refineries, additional two refineries being shut down. In the next year and a half or so, and that's going to be a huge crunch on fuel. They're seeing that our pipelines are starting to become too low to flow, I guess is the right way to say it in layman's terms. And the volume going through these things is drying up because they don't have the production coming from Kern County.

• 43:00Speaker 03

  They're seeing the risk of importing and continues to import and percentages of imports are rising and rising more over well over 70% now of our crude is being imported. We don't have Alaska source either. Alaska used to be a huge provider of oil to California and that's dwindled down substantially. A lot of the same reasons that California has is there's been a lot of environmental pressure and stuff like that. So people they're starting to realize well, you know, people that never supported oil and gas before that were always adamant against it are now starting to say, well, we we got a little too far ahead of ourselves.

• 43:33Speaker 02

  This is what you've been talking about for a long, long time.

• 43:35Speaker 03

  We did and there's actually people that you would never think that are becoming adamant voices for California producers.

• 43:42Speaker 01

  It's about time. You've been you've been screaming about this for 10 years and it's and I I've also felt this way, too. It's like this is definitely not sustainable. Like they're heading they're heading towards a place, like you said, because it takes so long to get this stuff online. They're heading to a place where we're going to see $10 a gallon gas, you know?

• 44:05Speaker 03

  The other thing that always it never used to really for me couldn't set in like I couldn't understand. Well, national security, national security, what does that mean? What does that mean? And, you know, I we go to Catalina every year for a week. I love that place. And you go out in Long Beach Harbor and you see the amount of tankers sitting there waiting to be offloaded. Same thing is going on in San Francisco Bay. You think, I mean, the amount of oil that's coming in here and the amount of bases, military bases, and our security is 100% dependent, our transportation security, not just like military security, but our way of life. I mean, that could be crippled with any kind of action or any kind of embargo or any kind of cutoff. So it's becoming

• 44:47Speaker 03

  a reality where I never really thought, no, no, we're fine. There'll always be a way to get oil into California, but now we're down to seven refineries. You know, we don't have the refining capacity. Now we're looking at having to import our gasoline and our diesel from foreign countries, which is, I mean, there's only a special blend that we have in California.

• 45:05Speaker 01

  Right.

• 45:06Speaker 03

  But we're going to put that, outsource that to another nation.

• 45:09Speaker 01

  We had Cyrus Mojib on the show.

• 45:11Speaker 03

  Yeah, it's crazy.

• 45:13Speaker 01

  We had Mojib on the show earlier this year and talking about this, you know, they refine different stuff.

• 45:20Speaker 03

  Yeah.

• 45:20Speaker 01

  You know, at the refinery here, but we talked about this extensively about the problem with refining California. And I don't see any way forward. Like, who's gonna, nobody's building refineries. Do you see it ever changing?

• 45:33Speaker 03

  No, I mean, I see, when a refinery shuts down, it doesn't open up again. I've never seen it happen. Maybe it's happened once or twice, but it very rarely happens. And, you know, like for that exact reason, we believe that we're one of the providers of crude to Cyrus, and then we think the world of San Joaquin. And they may be, you know, I have a belief in my mind, they may be the last refinery standing if it all comes down to it.

• 45:59Speaker 01

  Right here, San Joaquin refinery.

• 46:00Speaker 03

  Yeah, I mean, they're just small enough and they're...

• 46:02Speaker 01

  They can take local product.

• 46:03Speaker 03

  They could take local product, and they may have enough local product to keep it going, you know. And I think when I first, you know, we used to ship our oil, all of our oil up north to Martinez. And we started to see the writing on the wall a while ago and saying, man, this is really a reality. Yeah. And there's only two places you can go, north or south, or two refineries in Kern County. One is Kern Oil, or not Kern Oil, Kern Energy, and they're more of a lighter product, lighter crude. And, which isn't a lot of our oil, it's a lot of our oil is all heavy. And then there's San Joaquin, and San Joaquin is such a huge provider of asphalt to the state. There, I've got several...

• 46:42Speaker 01

  Acute oil.

• 46:42Speaker 03

  One of the reasons I'm late is the train that comes in and out by our office is going outbound, and I never get upset about that. You know, I think, obviously, I add up the employee hours to get stuck behind that train. But now I think, you know, that's all.

• 46:54Speaker 01

  So it goes across Rosedale Highway, right?

• 46:56Speaker 03

  No, that's a different one. That's when we come into that biodiesel plant. I don't even know if that thing's operating or not. But yeah, it's a great place for me, for a handful of us locally, to provide crude to. And I think that we have to stick together and that's, it's one of the things where I feel really good about it. Cause he's a good friend, somebody you trust and I don't know anybody. I know the contract reps I've always dealt with at these big corporations, but it's, it's nice to deal with a, a small family owned.

• 47:26Speaker 01

  Yeah. Somebody you can see downtown.

• 47:28Speaker 03

  Yeah. Drive right by and wave at them. It's like, it's different.

• 47:31Speaker 01

  Yeah.

• 47:32Speaker 03

  Which I never had that. I, we used to sell them years ago, but I never really had that. Now we're like really, I would say we're all in it together.

• 47:39Speaker 01

  And that's like the good old fashioned Bakersfield like business network that, that built this community, you know?

• 47:47Speaker 03

  I agree.

• 47:47Speaker 01

  Oil and ag and having those relationships and, and all of that. Are you surprised as much as I am that oil prices have not gone up? That considering the things you mentioned, you know, Russia, Iran, all of the things that are going on. And yet here we are, oil prices, you know, 60, 60s.

• 48:11Speaker 03

  I am, and you know, there's also, there's the supply side. I mean, on the, on the actual physical supply side, we're at, we're at really significant lows. Um, our supply has been really low and when it's been this low, the prices have been higher in the past.

• 48:26Speaker 01

  But, and demand keeps going up.

• 48:28Speaker 03

  It does.

• 48:29Speaker 01

  So that's why it's confounding to me. You have, you have a continued, a gradual increase on, of demand, which no, no politician wants to talk about.

• 48:37Speaker 03

  Right.

• 48:37Speaker 01

  Nobody on the left wants to talk about it.

• 48:38Speaker 03

  No.

• 48:39Speaker 01

  Uh, but you have this gradual increase in demand and it's expected to continue to increase for at least a decade.

• 48:46Speaker 03

  But negative, negative rhetoric, I mean, not negative rhetoric, but I mean, basically the current president we have does not like high oil prices. And he makes, he's one of the most vocal presidents ever when it comes to the price of oil.

• 48:58Speaker 01

  Like, but.

• 49:00Speaker 02

  Is that an explanation?

• 49:03Speaker 03

  I'm, no, I'm just saying that if you look back, look, you know, I don't, that's something I hate. We don't get into politics.

• 49:10Speaker 02

  Speculation.

• 49:11Speaker 03

  We don't, but I've never. Never seen a president tweet or call out in our country, you know, on a price of oil and tell them they better lower the price. I'm sure they're sitting there thinking, uh, who the hell are you? But it, it, it somehow has some sort of a there's a small impact there.

• 49:30Speaker 01

  Yeah.

• 49:31Speaker 03

  That, that it's just, it's there.

• 49:32Speaker 01

  I think where there's

• 49:33Speaker 03

  The market dynamics don't make any sense right now. Like you said,

• 49:35Speaker 02

  I was gonna say, like, do you have a, do you have anything you attribute that to? That would be your answer, I suppose.

• 49:40Speaker 03

  Well, I

• 49:41Speaker 02

  Or guess?

• 49:42Speaker 03

  I mean, if you want to ask my opinion, I don't like it, but you know, it's, I mean, seek, I mean, selfishly, I don't like it, but at the same time, that's, I think that's been really good for the consumer.

• 49:50Speaker 01

  Could an answer be the reason why oil has stayed so low is that it's like a ticking time bomb? Meaning you, what has dried up and you've confirmed this is access to capital, access to capital markets? Like banks, large banks don't want a loan to oil and gas. They don't want a loan to energy. You can only get so far, not, not building infrastructure and not, not, not investing in, in pulling the, the oil and gas out before it, eventually it'll catch up. And that's been going on for

• 50:23Speaker 03

  We're on the tail, we're on the downward slope of the ESG movement too as well. There's a lot of people that pulled out of that.

• 50:28Speaker 01

  Yeah, yeah.

• 50:29Speaker 03

  Burned really bad.

• 50:30Speaker 01

  Yeah.

• 50:30Speaker 03

  So I think that's actually, we're on the downward slope of that, but on the upward slope of that and, and the precipice, we, we basically, we're, we're persona non grata to every dollar that existed on the market, it seemed like. And that's where I think a lot of the, and then the previous downturns where banks were over levered in our industry and they lost a lot of money. But that's the same thing with real estate. That's the same thing with industrials.

• 50:51Speaker 01

  Yeah.

• 50:52Speaker 03

  Same thing applies to everything, but the stigma is what was a little bit different. It's like coal, right? Nobody's going to invest in coal. Nobody wants to invest in coal, except a small sliver of people that still believe in it.

• 51:02Speaker 01

  Right, right. Um, okay. Well, good. Then, um, Newsom's floating a draft bill to streamline new drilling.

• 51:13Speaker 03

  Yeah, it's a it's a it's a ride of brilliance. They were supposed to get it done last week. And it didn't get done. But we're very hopeful that in August when they come back that that it'll get done. What we're gonna, I think we're gonna have is a window of a decade or so to to go back to to business. And there's gonna be some kickers in there where we have to, we've already been abandoning walls like crazy. We've abandoned more walls in the last four or five years than we have in the last 15, I think. It's been insane on how much liability that we've been able to get rid of in such a short period of time. But I think the reality has set in where, hey, if these guys don't do something, we're gonna be in a world of trouble. And that is exactly what happened.

• 51:57Speaker 03

  The C E C. And then also, you have, you know, USC professor that did this incredible study on on eight dollar gasoline. And wow, it's a really, really

• 52:08Speaker 01

  What would happen to society?

• 52:10Speaker 03

  But a very high probability it can happen if if certain things don't occur. And that was a really powerful thing that came out like about a month and a half, two months ago. And and that really made a lot of headlines. And I think they're just really starting to realize that that this transition isn't going to happen on their timeframe.

• 52:28Speaker 02

  Yeah.

• 52:29Speaker 03

  And that it's going to be a while. And in California, it's it's midterm election thing too, as well. I mean, you've got the highest electricity prices in the country. You got the highest gas prices in the country. It's we're at a point where, I mean, living in California is becoming extremely expensive, if not, well, it was already, but it's it's it's something where it's really gonna hurt the political parties that are in power.

• 52:52Speaker 01

  And and the increase in tax and in in gas is a is a tax to those who can least afford it.

• 52:59Speaker 03

  Yeah.

• 52:59Speaker 01

  It's a regressive tax because everybody has to buy gas and and pay for their, you know, utilities. And so that's interesting study. I wish we had more time, you know, to talk more about that. But really good stuff, Chad. Good job, man. I'm proud to be your friend.

• 53:14Speaker 02

  Always so good to have you on.

• 53:16Speaker 03

  See you guys too.

• 53:16Speaker 02

  Yeah.

• 53:16Speaker 01

  Yeah, thanks so much for taking the time, Chad. I know you're super busy. Again, that's Chad Hathaway. He's owner of Hathaway LLC. Also 1913.com. Go check it out.

• 53:26Speaker 02

  Enjoy your bachelor weekend.

• 53:28Speaker 01

  Yeah.

• 53:29Speaker 02

  Week.

• 53:30Speaker 01

  Week. Yeah.

• 53:31Speaker 03

  I do, actually.

• 53:31Speaker 01

  Want to remind everybody that we will be back tomorrow. Myself and Sammy will be talking to Anselmo Morero about credit. Remember these three things: be smart, be safe, and always be money wise.

• 53:45Speaker 04

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