8/7/25 Getting Down to Business with Local Attorney, Kyle Jones

The Moneywise Radio Show and Podcast Thursday, August 7th 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: Kyle Jones, Attorney website: www.kwjoneslaw.com/ phone: 661.833.1090

• 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.

• 0:45Speaker 00

  Well, that's a first.

• 0:46Speaker 01

  Hello, I'm on, I'm on the radio right now. I can't answer the cell phone.

• 0:50Speaker 00

  Can't take a call.

• 0:50Speaker 01

  I can't take a call.

• 0:51Speaker 00

  Welcome, welcome to Moviefone.

• 0:54Speaker 01

  Welcome to the Money Wise Show. We had a nice little phone ring.

• 0:59Speaker 00

  That's what happens. We have an internet phone.

• 1:01Speaker 02

  Is that what that was?

• 1:01Speaker 00

  So, any callers that call in or text, they can call right into the show.

• 1:05Speaker 01

  So, somebody's ready to join the show already.

• 1:07Speaker 00

  Bring them right.

• 1:08Speaker 01

  We have a question, a comment, what do we have?

• 1:09Speaker 00

  And it marked a telemarketer.

• 1:11Speaker 01

  Oh, awesome.

• 1:13Speaker 02

  Okay. It's Thursday, KP and Seth.

• 1:15Speaker 01

  Somebody, somebody probably needed to talk to somebody about their car warranty, extended car warranty. Anyways, this is the Money Wise Show. I am your host today, Chris Pelster with...

• 1:26Speaker 02

  Seth Perry. So glad to be here, KP and Steve.

• 1:29Speaker 01

  Yes.

• 1:29Speaker 02

  The man.

• 1:30Speaker 01

  What a, what a week. What a day.

• 1:33Speaker 02

  What a week, what a day.

• 1:34Speaker 01

  And we are getting ready as an office to go to a wonderful training. Dive in, learn a little bit more about our industry trends, how to better serve our clients.

• 1:44Speaker 02

  Terrible location.

• 1:44Speaker 01

  Very, very excited, yes.

• 1:46Speaker 02

  I tried to, I tried to get them to move it, but...

• 1:48Speaker 01

  Yeah, I was hoping like Mojave or, you know, Merced or, you know. And they're like, nope, San Diego.

• 1:57Speaker 01

  But we'll try to make through that week, a little bit of training, a little bit of continuing education, some stuff that we do as advisors. This is the Money Wise Show though, and we are here to try to make you money wise. We have some wonderful comments that, questions that came in that is going to lead into some phenomenal discussion on some topics that are very, very popular, very timely, always talked about. And we want to just continue to kind of try to break through the junk, not put a spin on it, not try to sell anything necessarily, but just try to talk through these topics. So you can have a well-rounded view of things and do what you do, focus on your situation, your plan, and stay invested in a way that makes sense for you.

• 2:41Speaker 02

  On that point, I've been here with Money Wise and on this radio program for a handful of months now, and I've never once, at least in our show, or the other shows, felt like a slimy salesperson.

• 2:51Speaker 01

  Yeah.

• 2:52Speaker 02

  That's kind of nice.

• 2:53Speaker 01

  It doesn't come off that way. You, you seem pretty slimy, but...

• 2:56Speaker 02

  I was gonna say, if they could see a video, they'd, oh, here he is, car salesman.

• 3:01Speaker 01

  Not at all. That's what we've always wanted to do. We've always said, Money Wise has been around for 20 years and on the radio, and it's, it's moved its way into radio show slash podcast. And, and so we've kind of navigated even the changing face of, of radio and podcasting and different things. We've always wanted to break through the junk, try to help, you know, the news and the, the, the common things. And we've, we've heard things off and on over and over and over for all this time. And we've kind of just been saying some of the same things. Tried and true financial, planning methods and, and methodology, that if you stick with it through the ups and the downs and through everything else and all the different things that have changed. You think about 20 years ago, and what was going, going on

• 3:46Speaker 01

  in the markets, and what was going on, and who the president was, and all these different things. I know it feels different today, but 20 years ago, I was talking to clients and we were having shows and podcasts, and it felt like this is different 20 years ago. No, it's always the same. And you want to just keep making wise decisions that give you the highest probability for long... term financial success so that money is not keeping you from doing all the things that are most important to you, but actually allowing you to do more of the things that are most important to you. We always talk about money being amoral, meaning it's not good or bad, but it can be used for good things.

• 4:22Speaker 02

  Yep.

• 4:23Speaker 01

  Or for bad things. And if you don't tell it where to go, it will find a place to go.

• 4:28Speaker 02

  Indeed. And like any good burning fire, which is the Money Wise Show, we need to keep getting good fuel, which we always do. And we have some really awesome questions we're going to go over after the market update.

• 4:39Speaker 01

  So yeah, let's talk about the markets. We've seen a little bit of volatility as of late. Um, there's these things called tariffs being talked about. Last week they came out and decided to keep uh, interest rates unchanged. There's just some things and people are kind of waiting, uh, the, the, the wait and see. You would think wait and see means nothing, but wait and see sometimes means a little bit of volatility. As, uh, people then become very reactive, uh, to, uh, to what the markets are doing or what the feds choose to do. It just kind of moves here and there as people are waiting to see. So, uh, with that being said, the markets as of today, the S and P 500, we talk about a lot is the 500 largest companies on the exchange. Uh, it's barely negative, not even point one percent down today. So relatively flat.

• 5:24Speaker 01

  Giving a little bit of perspective, eight percent year to date, back up 12 months. The one year return on the S and P 500 is 21.93%. So just about 22% there on the one year. We will talk about the S and P 500 a little bit as one of the questions that came in was gold and silver, which is a popular topic. So we will talk about that a little bit and kind of look at the S and P 500 and how that compares. So it's a great thing to look at. The Dow was also down a little bit, point five percent, about a half a percent. And so we call that the dumb Dow. Why do we call it dumb Dow?

• 6:01Speaker 02

  What?

• 6:02Speaker 01

  What? What was that?

• 6:03Speaker 02

  Steven, the phones ringing, David, you're giggling?

• 6:06Speaker 01

  I was about to do the noise on my, on my own. I saw that my door was open. Precious? No, no, that's a different one. Oh, yeah.

• 6:16Speaker 02

  As one of our best clients walks by the door.

• 6:18Speaker 01

  Yeah, there you go.

• 6:20Speaker 02

  There it is.

• 6:23Speaker 01

  So down half a percent. So, but I mean, that's, that's one of the things where the Dow is down pretty considerably today, half a percent, to where the S and P 500 is only .08. The Dow is price weighted, it's only 30 companies. It can be impacted by just a few short holdings in that little list of 30. Uh, because if two or three of the big companies are down, even if the other 25 or 26 or 27 stocks are up, it could still end up having a negative impact there on the Dow. But it has been followed for a long time. People look at the Dow because it has big movers like Caterpillar and different companies that people think, well, if we're selling earth moving machinery and that company's doing good, it should seem that the economy's doing good. But, so there's the Dow and NASDAQ's just up a little bit there. So.

• 7:08Speaker 02

  Before we hit the questions.

• 7:12Speaker 01

  Precious. I wanted to save that one that you guys just did. That one is way better than this sound clip.

• 7:20Speaker 02

  Before we hit the questions, I wanted to give a shout out to, um, Bakersfield Rocket Club for having us. We had our event last night, um, financial seminar for teams. We had a great turnout. We had a little over 50 people show up and it was fun. It was educational and, um, yeah, just a big shout out to them and everybody that joined us. And hopefully if we do this again, we can have a hundred or 200 or even a thousand people there. That's my goal.

• 7:44Speaker 01

  Yeah, go from 50 to a thousand. I think that's totally reasonable. Yeah.

• 7:47Speaker 02

  Totally.

• 7:48Speaker 01

  I don't know if I would do it all at the same time in that same room. That room was very nice, but.

• 7:51Speaker 02

  Room was cush, but a thousand, thousand people be a little, little tight, little tight.

• 7:56Speaker 01

  Uh, we do, we do have a guest coming in today. We have Mr. Kyle Jones, friend of the, uh, show coming in today, talking a little bit about, I think Tiger Fight, I believe, maybe some stuff coming up and we might even.

• 8:06Speaker 02

  Talk anything.

• 8:07Speaker 01

  Yeah, he is. He's going to talk some estate planning stuff too.

• 8:10Speaker 02

  I just wanted to prove to set that he is a real person.

• 8:13Speaker 00

  Because the last couple of times I booked him, he had to back out.

• 8:17Speaker 01

  He's a busy man. He's a busy man.

• 8:19Speaker 02

  I'm looking forward to talking to him because I will talk about it when he's here, but I quit dragging my feet and I actually called his office, made an appointment today. So, yeah, looking forward to chatting with him about it.

• 8:30Speaker 01

  Yeah, some people might say, what? An advisor's just now putting his trust together? But here's the good deal. I have told many clients, there are so many things that you can do to do the fancy word of estate planning without a trust, without a living trust. There's a few things that you can address.

• 8:45Speaker 02

  And have been doing.

• 8:46Speaker 01

  Yep, yep. But you want to make sure you're addressing what you can address and at some point you may want to jump over the the bridge. And I think that's what Kyle's going to talk about today. What what can you not take care of with just normal kind of management of your accounts and beneficiary information, all those things? What do you get extra out of the living trust? So we'll talk about that. So question came in, tariff talk. Hearing more about tariffs, what are the ripple effects of major tariffs and minor ones on investors and consumers?

• 9:18Speaker 02

  Well, the big reciprocal tariffs, we've known these were coming and those kicked into effect. It was either today or yesterday, but basically more than 60 countries, including the EU, Japan, UK and others are now subject to sweeping US tariffs ranging from 10 to 50%. And those are huge tariffs, man. So India, Switzerland, Switzerland's at 39, but India, Brazil, 50% tariff across the board.

• 9:45Speaker 02

  The good news is, now you know Trump, love him or hate him, he might embellish a little bit, but he said it's, the administration claims billions of dollars in new tariff revenue flooding in, but the actual projections are showing we're going to be seeing $50 billion per month coming into the government.

• 10:02Speaker 01

  Right.

• 10:02Speaker 02

  Again.

• 10:04Speaker 02

  Love him or hate him, the whole goal is to right the ship. We've been, as a country, taken advantage of, in my opinion. We won't get into it in great detail, but I think he's righting the ship. We don't always, no one ever agrees on how, how things are being done, but I do believe that the US economy is very important to him and the administration.

• 10:26Speaker 02

  Is it because there's a lot of billionaires involved now? I don't know, but either way, we're benefiting from it and I feel confident.

• 10:31Speaker 01

  Yeah, well, and one of the things that when we said that the market is pausing and waiting or kind of waiting to see what happens is, is with, with all these things, there's a good consequence you just mentioned, $50 billion per month in revenue. It's hard for us as common folk to even understand what that means. You know, where's the trade off there? Because some lack of productivity will be had now because maybe some US manufacturers or companies are unable to export because of some of the tariffs that, that are now reciprocal on us. So there's, there's a settling out of, of the effect and there's unintended consequences of all things. And so that's kind of what the market is waiting to see

• 11:12Speaker 01

  is like, how much impact is this going to have on, you know, America's GDP and America's productivity and some of these different things. There's positive things that are coming about. I, I seem to see some articles here and there that some manufacturing and some companies are bringing manufacturing back to America. But you know, like I said, there's going to be a fallout. There's going to be some goods, some bad. It's going to shake itself out. And so hopefully on this show, we can talk about all this stuff, break through the junk, but then ultimately you shouldn't be necessarily making major financial or investment decisions based on you thinking that you need to understand what's going on with tariffs and different things. It's, it's where you stick back to the same thing that we talked about earlier, as far as having a plan and having a, a portfolio that makes

• 11:57Speaker 01

  sense for your situation, having a stock exposure that makes sense for your situation. You've mentioned it before, like keep leaving it up to the pros, whether it be a, a managed mutual fund who's kind of navigating stock selections or whatever kind of mutual fund it might be, or if you're working with And advisor, they're going to be hopefully keeping the right funds and fund managers and stuff on the platform. That's going to help navigate through some of these uncertain times, but tariffs aren't new. Some of these economic realities aren't new, political and geopolitical world, global issues.

• 12:30Speaker 02

  Always there.

• 12:31Speaker 01

  It's always there.

• 12:31Speaker 02

  Always there.

• 12:32Speaker 01

  And so that's why we say stick tried and true to some of the methods that have made lots of people successful with money over time.

• 12:39Speaker 02

  And something I shared to the young people and their parents last night at the presentation was when the largest study of millionaires ever done, it was they all attributed their success to slow, consistent, steady investing over a long period of time. It's not that they got lucky. There are those few, you know, Bitcoin, whatever, that they get lucky. But the majority of millionaires out there just stayed slow, stayed steady and over time. Turned out all right. Did you also know, Chris, that eight out of 10 millionaires are made, not born? Did you know that?

• 13:13Speaker 01

  Yeah, I think so.

• 13:14Speaker 02

  So 80% of millionaires you see out there, don't just hate on them right away. Oh, they inherited money. No, no, no, no. A lot of them built their own wealth, 80% of them, which is pretty cool.

• 13:23Speaker 01

  There you go. Do we have time to get into another one? It's 12:15, we got Kyle Jones in the studio. He's ready to rock and roll. But the next, the next one we'll cover real quickly. It said, as a local resident oil industry, how should I diversify my investments? Given California's new clean fuel program? I'm sure you guys get this a lot. Ed. Ed, thank you very much. I will say that obviously California's new clean fuel program is very obviously geopolitical or geo focused just on California. So when you're saying diversify yourself, I'm not sure if you're talking about employment. I'm not sure if you're talking about investment.

• 14:01Speaker 02

  Yeah, we talked about it a little bit. I'm guessing that it's, hey, we're moving away from fossil fuel. We're going to clean fuel. How do I, how, you know, what's your stock pick maybe even? But our suggestion is, you know, invest in clean energy like solar, EV, battery tech stocks or ETFs, but don't, in my opinion, my professional opinion, don't. Don't just try to find one or two home runs, you know?

• 14:26Speaker 01

  Yeah, I mean, it's very specific to just California. Energy obviously is a big issue for all of us. There is a little bit of a changing thing. One of the things you're talking about, I mean, there is going to be some big investments in different types of technologies. Uh, I think it was the, uh, CEC, the California Energy Commission, um, through 2027 will invest a billion dollars in medium heavy duty EV and hydrogen fueling infrastructure. 650 million in light duty EV charging, 130 million zero, zero emission infrastructure. The thing that I'm going to bring up is there was a whole lot of money. I don't know if you guys remember under the Obama administration. He threw a bunch of money at solar companies to try to help them get off the ground because solar panels and solar was the future. And a lot of those companies are completely bankrupt and gone. So.

• 15:11Speaker 02

  Just got another notification from Mosaic, uh, part of the solar we're done, we're done and paid off, but you know, they filed for bankruptcy and it's just all these companies.

• 15:19Speaker 01

  So meaning, meaning it goes back to, there might be some opportunities here and there, hydrogen infrastructure, sustainable aviation fuel, biofuels, some of these different things that do come up with some of these big spending bills. The problem is, is it has to be very actively managed because sometimes it's, things are great and those stocks do great while the grants and the money is there, but as soon as the money dries up, the stocks usually negatively drop. And if you're not out before everybody else, right? So you gotta be careful and stay diversified. Um, like you said, maybe use the professionals, let that stuff roll.

• 15:52Speaker 02

  Great question, Ed. And I would love to know, uh, don't be shy to, a follow-up question. You said as a local resident in the oil industry, where, you know, who are you working for? And then you said, how should I, how are you diversified now? And then we can, we can talk on that more, maybe, uh, next time we're all together.

• 16:07Speaker 01

  There you go. We're going to take a break right now. We did throw out there that a silver or gold question came in, so we are going to get that later. After we talk to Mr. Kyle Jones, stick around, we'll be right back.

• 16:17Speaker 00

  Need to get your financial fix on the go? If so, subscribe to the Money Wise Podcast and catch up on all past shows whenever.

• 16:36Speaker 01

  This, this is a Metallica.

• 16:40Speaker 03

  It's a B-side, I think.

• 16:42Speaker 01

  Are you changing it up, KJ, or is this Metallica in?

• 16:46Speaker 03

  It's a cover.

• 16:48Speaker 00

  Oh, because this is, okay.

• 16:50Speaker 02

  Is this a yacht, yacht?

• 16:51Speaker 01

  No, it's not yacht rock. We did the yacht rock Metallica. I text you that.

• 16:56Speaker 02

  This is yacht Sandman.

• 16:58Speaker 03

  Yeah.

• 16:58Speaker 01

  There you go. There you go. What are we talking about? People are confused right now. Welcome back to the confusing MoneyWise Show.

• 17:06Speaker 03

  Steven would never not play a Metallica song.

• 17:08Speaker 00

  I got Metallica.

• 17:09Speaker 01

  Well, that's what made me think, like, what in the world is going on? But yeah, so Kyle Jones is a Metallica fan. And so I think, I don't know if you were on last time, but we played a yacht rock.

• 17:20Speaker 03

  Did you?

• 17:20Speaker 01

  Yeah, Metallica song, and I sent it to you, and I told Steven about it. And it's just funny to take a Metallica song, make it into a yacht rock song.

• 17:28Speaker 02

  And I had no idea what yacht rock was, so this is.

• 17:30Speaker 01

  You're cultured now.

• 17:31Speaker 03

  It's a thing.

• 17:32Speaker 02

  I feel cultured.

• 17:32Speaker 03

  It's definitely a thing.

• 17:33Speaker 01

  Yes.

• 17:34Speaker 02

  Can you talk about what you're looking at over here on the side of the table, KP?

• 17:36Speaker 01

  It's, it's actually kind of intimidating.

• 17:39Speaker 02

  I would think. I would think.

• 17:41Speaker 01

  We have two power haircuts. Two power haircuts. We got some stubble, both basically at the same levels.

• 17:48Speaker 02

  Combined IQ of?

• 17:50Speaker 01

  Little gray, little.

• 17:50Speaker 02

  292.

• 17:51Speaker 01

  Yeah, yeah. The blue shirts, the gray pack.

• 17:54Speaker 00

  I can't see their face, so I don't know which one I'm looking at.

• 17:56Speaker 01

  Be careful. Don't look right at it, Steven.

• 17:59Speaker 03

  It'll blind you.

• 17:59Speaker 01

  We are talking about these guys coordinated outfits, haircuts, eyeglasses.

• 18:04Speaker 02

  Everything.

• 18:05Speaker 03

  Facial hair.

• 18:05Speaker 01

  There you go. There you go. That is Kyle Jones. Kyle, how you doing?

• 18:09Speaker 03

  I'm good. And, you know, I know neither the time or place, but you mentioned Metallica, which I am a super fan. And I heard some rumblings that they're going to do a residency at the Sphere.

• 18:19Speaker 01

  Yes.

• 18:19Speaker 03

  In Las Vegas. And so that will be.

• 18:22Speaker 02

  Wow.

• 18:23Speaker 03

  The epic 35th.

• 18:25Speaker 01

  So that's what we're gonna hear.

• 18:26Speaker 03

  Concert I've been to, and I'll probably just wrap it up after that.

• 18:28Speaker 01

  Kyle is, he's actually staying three weeks in Vegas.

• 18:31Speaker 03

  Yeah.

• 18:32Speaker 02

  He's working remote.

• 18:33Speaker 03

  Working remote for the month of.

• 18:35Speaker 02

  Who's been to the Sphere?

• 18:36Speaker 03

  I have. It's great.

• 18:37Speaker 01

  Yeah.

• 18:37Speaker 02

  Really?

• 18:38Speaker 01

  What, what did you see? Did you see a concert? Did you see a?

• 18:40Speaker 03

  We did the experience, what they call it.

• 18:42Speaker 01

  Yeah.

• 18:43Speaker 03

  But with, as part of the experience, you actually get to sit in the seats and.

• 18:49Speaker 03

  And. Witness the sound effects, the, the technology with the seats moving, the, the the tiles that are the, that make up the, the roof, if you will, of the sphere. It's just unbelievable. It's, it's just like a marvel of technology.

• 19:05Speaker 02

  It's worth going then?

• 19:06Speaker 03

  Oh, for sure.

• 19:06Speaker 02

  Awesome.

• 19:07Speaker 03

  For sure. And it's reasonably priced. Now, Troy, our, our mutual buddy, Mr. Burden with the Link Company, he went and saw the Eagles and he just, you know, he's like, same thing as I, you know, I can't do it justice with words, but it, that was not reasonably priced. I, he paid a pretty penny for those tickets.

• 19:23Speaker 01

  There's a couple of things that, that I wish I would have bit the bullet. That one sounds cool. The other one was when the UFC fought, did the fight in there.

• 19:30Speaker 03

  That would be cool too.

• 19:30Speaker 01

  And I, and he says, Dana White says, he's never going to do it again. He's going to do it once and one and done.

• 19:36Speaker 03

  That was it.

• 19:36Speaker 01

  I don't know if he's going to stick to that, but it's like, that would have been so cool. And they did a whole, like a, like a Mexican soldier warrior like vibe to it. Uh, cause a lot of, a lot of the fighters were of Mexican descent and stuff and like, like they had this whole thing and it was pretty impressive. Like you could only watch it on HBO and you're seeing all the stuff on the screen, but I could imagine being there. Have you also seen the video of the gentleman that seemed to be really enjoying himself? And it was like a psychedelic video.

• 20:04Speaker 02

  Grateful Dead.

• 20:05Speaker 01

  And it like, and it, it like explodes with all these like fireworks and stuff and he falls backwards and like the look on his face, like he was paralyzed, laying backwards on like three rows of seats. Cause he was a very tall gentleman.

• 20:18Speaker 02

  That's the CEO that had the, with his friend? Is that what we're talking about?

• 20:22Speaker 01

  No, that's not.

• 20:22Speaker 02

  It's something else?

• 20:23Speaker 01

  Nope.

• 20:23Speaker 03

  So for those. He may have some psilocybin help or something with that experience.

• 20:28Speaker 01

  I mean, it's, it's impressive, but that was a, uh, induced

• 20:31Speaker 03

  Right.

• 20:31Speaker 01

  experience and, uh, yeah.

• 20:34Speaker 03

  It's pretty, I mean, the, like I said, the technology is amazing. When you, when you do the experience, um, and then how you hear the music, for example, inside the, if you're seeing a concert there, everyone's hearing the same thing. And so, um, you, you, they have these examples, you, out, out front, you, you, you can walk through and you're literally in these lines that are maybe five or six feet apart. And you're standing in the line and you're listening to these row of speakers and you hear, let's just say for example, Metallica song. Crisp, beautiful, everything. People. Five feet next to you hear a different song. And then the next row after them, five, and the speakers are all facing you. So, so you could see all the speakers, but the way they're, they're positioned and way the sound, the engineering of the sound going, you know, through the air. I'm not an engineer, I have no idea how that works.

• 21:15Speaker 03

  But, you know, four feet next to you, and then you get in that line and it's, it's loud, it's blasting you like, how could I not hear what they're hearing? Four feet from me.

• 21:24Speaker 01

  Wow.

• 21:24Speaker 03

  It's crazy.

• 21:25Speaker 01

  Yeah, I've, I've been wanting to go and I didn't know if, uh, like the experience and there's a couple of different things.

• 21:29Speaker 02

  I'm gonna do it now.

• 21:30Speaker 01

  I've never been to a Metallica concert and I guess that would be something we're seeing, but.

• 21:33Speaker 03

  We'll go.

• 21:34Speaker 01

  There you go.

• 21:34Speaker 03

  You just committed.

• 21:35Speaker 02

  A lot of fun.

• 21:35Speaker 03

  You just committed.

• 21:36Speaker 01

  Well, good deal. So, uh, you wanted to come in and, and make our money wise listeners just even that much smarter on estate planning? Is that the full, sole focus today?

• 21:44Speaker 03

  Yeah, pretty hard to do because you guys have got such good listeners, been doing it for so long that I feel like it's hard to bring something new to the table. But there have been a couple instances that's popped up over the last three to four months that I wanted to kind of share and maybe some action items for people to, to look at in their own. Financial situation or estate plan and, and just kind of go from there.

• 22:04Speaker 01

  And we actually have a recent, recent convert right here in this office.

• 22:07Speaker 03

  New client.

• 22:07Speaker 02

  Who's that?

• 22:08Speaker 03

  I heard.

• 22:08Speaker 02

  Who is that?

• 22:09Speaker 01

  Yeah. And it's one of those things where a lot of people might say, well, of course a financial advisor will have their trust. And, and, and I will say, there's a lot of estate planning issues that you can address that, that might, you know, get you right up to the finish line. But there's a few things that can't be addressed without a living trust, obviously. So that's kind of one of the things that we want to talk about. Like there's many, many things that even if you're dragging your feet on doing the trust, you can still address many, many things to make sure that your accounts are set up correctly. Titled correctly, beneficiary information and all these different things. But then crossing over that last bridge. And so that's, that's what we're talking about today. So.

• 22:45Speaker 02

  Full disclosure. So knowing that you're coming on the air, it's something that my wife and I, we gotta do it, we gotta do it, you know? And, and in my mind, just again, full transparency, mom, 45, what are the, what's the probability if something happens to she and I, blah, blah, blah. But my goodness, I preach it to my clients. I gotta, Seth Perry's gotta put his money where his mouth is. And so I've, I've got you booked for late September to come in. So someone else that's in my position, um, having property out of state is something that I did not know that I might need to be working with. An attorney out there because there's no way you can be an expert in the law in all the states, but. What are some other, not to scare our clients, but for me, like what risk was I opening myself to?

• 23:29Speaker 02

  Even if my beneficiaries are tight?

• 23:31Speaker 03

  Well, for you, it sounds like just the property. If you have your, all your qualified accounts designated with your spouse as a primary beneficiary, your children, or whomever you choose as your contingent, you know, you've covered that basis. Your banking accounts, you can put TOD or POD, stands for transfer on death, payable on death, which again, gets it to whomever you want without needing probate. But you're, it sounds like where you're leaving yourself a little exposed would be with respect to the real property. And, and again, like you said, the likelihood of something happening to you and your wife at the same time, you know, obviously not, not high, but, but that's the area you're kind of exposing yourself.

• 24:10Speaker 02

  So let's be real, I leave work today, my wife and I are on our way to dinner, something happens, we don't make it to dinner, if you know what I mean. We have this property out there. It's my understanding that it would have to go through the, it's in South Carolina, the city in South Carolina have to go through their probate.

• 24:25Speaker 03

  Their county, right.

• 24:25Speaker 02

  How does that work?

• 24:26Speaker 03

  Yeah, it's going to go through their county probate. And then if you own, if you own property here in California as well, then you're going to have a probate here in Kern County as well.

• 24:33Speaker 02

  Got it.

• 24:34Speaker 03

  So, you know, again, you know, I don't, I haven't read your questionnaire yet because we haven't met, so I don't know your full, you know, family makeup or dynamics, but, but assuming.

• 24:42Speaker 01

  I was hoping you would bring in all of his personal information.

• 24:44Speaker 03

  Start reading it, yeah.

• 24:45Speaker 01

  Just go over it in full disclosure on the show.

• 24:47Speaker 03

  Throw it on the air.

• 24:47Speaker 02

  Yeah.

• 24:49Speaker 03

  But assuming, you know, again, if, let's just say you hypothetically have two, three children, and you wanted them to share everything equally. Probate's not the end of the world because that's, at least I can't speak to the probate code in South Carolina, as I said. But with respect to California, the, the property would eventually get to them, but it's going to go through this 12 to 18 month costly process.

• 25:08Speaker 02

  It's long, crazy.

• 25:09Speaker 03

  To do so, and so that's kind of what you avoid with the, with the trust.

• 25:12Speaker 02

  And then them getting the life insurance policies, all the investments and, you know, it's just a, I'm really glad that you're in here today so we can knock this out, man.

• 25:19Speaker 03

  Looking forward to it, we've been talking about it for a while, so.

• 25:21Speaker 02

  Yeah, and I'd like to share on the air the experience and how awesome it goes, man.

• 25:24Speaker 03

  And so, thank you. Yeah, and one of the things that I wanted to bring up in this, as a good segue for it. Is, and so like I said, if you with your retirement accounts, qualified accounts, you have these beneficiaries designated, so you have this covered, you may have beneficiaries designated on your life insurance policy, so you have that covered. But with your property, we talked about, you know, where I you potentially for Seth, for you example, where you'd be exposed if something happened to both of you at the same time. But what I've seen, not frequently, but at least a half dozen times over the last year or so, which is a half dozen times too many, is husband and wife coming in and working on their estate plan, and then when we pull up their deed to their home, they actually don't own it in joint tenancy.

• 26:07Speaker 03

  So with the title being held in joint tenancy, except I'm just using you and your wife Seth as an example. We talked about if something happened to both of you, God forbid, at the same time, then it's obviously going to have to go through probate. But if something happened to you or your wife, nothing needed to be done other than recording a deed with the county. And then the survivor's on title, no probate, nothing costly, you know, obviously it's going to be, you know, a tragic time in your life, but aside from the mechanism of handling that asset is relatively minor. The handful or so of clients I've had in the past year that I've seen, they hold property as community property on their deed, hold title, but it's missing a very key phrase

• 26:52Speaker 03

  at the end of that, which is with rights of survivorship. Okay? And the significance of that is community property with rights of survivorship is similar to the joint tenancy where it's not that big of a deal if one spouse were to produce the other. If it's just community property and then ends there, it's presumed that it's not without rights of survivorship, and the surviving spouse would actually have to probate that other portion of the property if one spouse were to produce the other.

• 27:21Speaker 02

  Interesting.

• 27:22Speaker 03

  The all but one of the times this has come to my attention in estate planning with clients, we, I would say caught it and pointed out, we did a trust and transferred it to trust, it was an issue. But sadly, one of the times a wife was coming in to do the trust and the deed was with her With her and her late husband who'd recently passed, but they did not have that designation on their deed. It was just community property. And so I had to refer them unfortunately to a colleague, friend of mine, Mr. Pearl, to probate that before we can get her interest into the trust. And so that's something that anyone listening can do right now, regardless if you have a trust. If you do, and it's funded correctly, then obviously this is not

• 28:03Speaker 03

  an action item for you. But if you are married and you do own property with your spouse, real property, pull up a copy of your deed. You should have it. If you don't, go to the county recorder's office, request a copy, $3, and make sure title is held how you intended it to be held.

• 28:18Speaker 02

  Yeah.

• 28:20Speaker 03

  And it's not, you know, I don't want to cast dispersion on, on real estate agents or title companies or escrow officers, you know.

• 28:32Speaker 03

  90% of the time, they, you know, they advise people of the significance of how they're, how they're to take title and what it means. And most of the time it's done right.

• 28:39Speaker 02

  We've bought and sold, I mean, several properties since, in the last 20 years, and it's never come up.

• 28:46Speaker 03

  Right. Okay. Well, then.

• 28:46Speaker 02

  You know what I mean?

• 28:47Speaker 03

  Yeah. So it should.

• 28:48Speaker 02

  They've never brought that up.

• 28:49Speaker 03

  Yeah. It should be a conversation.

• 28:50Speaker 02

  Just here, sign here, sign here. This is a title, blah, blah, blah.

• 28:52Speaker 03

  So that should be a conversation you have, and you should understand the legal significance of how you hold title on your property. So, so there's an action item for you. Pull up your deed, take a look at it, make sure it's titled, you know, how you intended it to be titled. So.

• 29:04Speaker 01

  So can we, so an extension of that, it's a little bit of a different scenario, but one that I hear quite often. We're going to do a deed and we're going to just put our son or daughter on it. Cause then this is going to take care of issues. What issues come up when maybe a couple says, we're just going to own this house with our son or daughter or something like that, so that they're on the deed? What issues can that cause? Or is that an effective way to go ahead and take care of that?

• 29:32Speaker 03

  It's an effective way if your main concern is just avoiding probate, right? If you're saying, I don't want to have to have probate, so I'm going to add a son or daughter on as a joint tenant, then as we discussed earlier, the, the joint tenancy is simply filing of a death certificate with the county and then take someone off title.

• 29:47Speaker 01

  And you can have three be joint?

• 29:49Speaker 03

  Joint tenants. Yeah.

• 29:50Speaker 01

  Yeah.

• 29:50Speaker 03

  And I've seen it. The downside to that however are twofold. One is on the back end, so that's technically not an inheritance if you're adding on as a joint tenant. Right. You're basically gifting them that property. Cause you're alive and you're adding them on title. So you're gifting it. So you don't.

• 30:06Speaker 01

  A third of it.

• 30:06Speaker 03

  Right. So you don't get that step up in basis as you would if you inherited it, which will lead us to another topic I wonder to talk about. If you remind me on qualified accounts with beneficiaries and how that works, not in your trust. But the other issue that doesn't come up as often, which I think is equally important is if you add somebody on title. Right. While you're alive, let's say it's a child as a joint tenant. Well, that's technically their property as well now, right? You've gifted it to them. So if that son or daughter, let's say were to get, I don't know, sued for whatever. Credit card debt, medical bills, auto accident, anything, and they get a judgment against them. And then an attorney does an asset search, right? They say, oh, he owns this property.

• 30:49Speaker 03

  And then all of a sudden you, there's a lien that's popped on your house and you're wondering, well, how's there a lien on my house? I didn't get served with anything. Well, I wasn't involved in any litigation. But so happens to happen to be the person that you got onto your title. And so that's kind of a situation that's not often spoken about, but it's, I think, very important to kind of consider if you're going to do that.

• 31:11Speaker 01

  Yeah. It's like a lot of these things we talk about, it's like the likelihood or when do you see these things? Like, it's not like it happens all the time, but when it happens.

• 31:19Speaker 03

  It's a mess.

• 31:20Speaker 01

  It's a mess. And it's like, you know, yeah, I mean, it's just something to majorly consider. Cause a lot of these things that we talk about, like when we, when I have to dive deep and discuss beneficiary information with clients and try to really dig deep into like even standard versus per se.

• 31:36Speaker 03

  Right.

• 31:37Speaker 01

  And, and you know, like, are your kid, do your kids have kids now? Do you want their portion to go to them versus over to the other beneficiary? How often does that really come up and affect people? Not all the time, but when it does, it can create real huge vacuums in what most people's wishes probably would have been. And it's not realized until the unfortunate circumstance happens. And then it's like a mess to unfold. And what we're talking about there is I would have still wanted X dollars to go to my grandkids, right, on that side, but I had it set up standard. So the portion that would have went to them, I unfortunately lost my child. Their portion goes to my other child, which means it's still going to your kids.

• 32:20Speaker 01

  But now they get all the money that I probably would have intended to still want to go to those kids. And I almost have to draw something out on the whiteboard here.

• 32:27Speaker 02

  And no, and then it puts pressure on, on them.

• 32:30Speaker 01

  Cause the clients get overwhelmed. The clients get overwhelmed and it's like, but it's like, the reason why we push on this is because when we see it go wrong, it's very messy.

• 32:39Speaker 03

  Yes, and like you said, it, it's not common.

• 32:43Speaker 01

  Right.

• 32:43Speaker 03

  Um, and so, you know, you, Seth mentioned something and it's not something I'm intending to do at all, like a scare tactic. It's not, that's not what it's about. I, I am very aware that circumstances that cause these issues are not the norm, right? The norm is things go relatively smoothly. Is it 2%, 5%, 10%? I don't know the data as to what it is that, that falls into this area where it's a mess now or problematic, but it's just something whether, if you want the peace of mind to avoid that percentage, whatever number it is, then you just take action and do it. If, if you're fine with, you know, being that, in that probably 90 or plus percent and likely

• 33:27Speaker 03

  everything's gonna be okay and just things are gonna go as naturally and smoothly as they should, and you're comfortable with that, then that's, that's great.

• 33:33Speaker 02

  And that's what, that's what I'm gonna be paying for and is the peace of mind. It's been nagging me for a very long time. I haven't, I've had life insurance forever. I like, that's, that's not a concern. And it's same thing with life insurance. I used to sell a lot of that stuff. And it's like, you don't wanna use, it's not a scare tactic, but it's like, this is a reality of what could happen. It's super, super rare.

• 33:50Speaker 03

  Right.

• 33:51Speaker 02

  But I rest my head on my pillow, knowing financially, eventually they're taken care of, but now I want to know that everything's dialed in. And this goes down to guardianship of kids, um, power of attorney, um, my wife used to work in the ICU.

• 34:06Speaker 03

  Yeah.

• 34:06Speaker 02

  You know, and, and there's young people that get put in situations and decisions have to be made for them. Very difficult decisions, right?

• 34:12Speaker 03

  And that's, I mean, I'm not in, in insurance industry. I don't do sell insurance, but I have it for the same reason. It's a term. I, I have a high amount because I want my spouse and my children to have the lifestyle that I've tried to build for them while I'm here. And God forbid, if something happens to me before that magic term number, then, then, you know, they, they do. And I hope it never pays out. But, um, um, but that's just the peace of mind I wanted to pay for, so.

• 34:38Speaker 01

  Yeah. A lot of times, uh, you know, some of, when we talk about tried and true methods and financial planning and, and, and wealth building strategies here. It's like boring. It's not real sexy and fun and exciting, but it's like, the simple explanation of it is a financial plan takes, takes time to put things into place. To build wealth, to save money, to invest it, to start taking advantage of compounding interest. Takes time. So before I have my wealth built up, I rent it for as cheaply as possible. Cause if something happens to me in the process of building that wealth plan and that financial plan, I want to be able to leave that money to my, my, my family and kids. But most people's financial situations warrant term insurance, cheap as possible, cover a risk.

• 35:21Speaker 01

  You're working your plan, you're paying down debts, you're paying off debts, or hopefully eventually paying off your home. So I don't have to leave that chunk of money for some of those different goals. Now, obviously, uh, income replacement is a concern, but if you're building up a sizable nest egg and you're just saving a portion of your account and investing it. That's the whole thing is you're building up a plan that's going to be able to take care of your spouse and even your kids and grandkids. Um, if you keep working that and then, uh, you're renting that wealth while, before you have it as cheaply as possible. So.

• 35:52Speaker 03

  Yeah.

• 35:52Speaker 01

  That's kind of the basics of the boring and, and, uh, non sexy way of, of winning with money. But, but by golly, it's, it's worked for a long, long time. Like you were just saying that, you know, uh, uh, fidelity or the study of millionaires and, you know, all of them became millionaires over a slow period of time.

• 36:09Speaker 02

  Slow.

• 36:09Speaker 01

  Slow and steady and it's not super exciting, but it, uh, it works.

• 36:13Speaker 03

  And it's not something that you necessarily have to, um.

• 36:19Speaker 03

  I mean, just being honest, it's not really that complex. It's not really complex. It's just, it's just some time, a little bit of time and then, and having a conversation to get an explanation as to what certain terms mean and the significance of them and then, and then just implementing it. And then, and then that's really it.

• 36:36Speaker 02

  So what do you say to the person that has just

• 36:40Speaker 02

  maybe even a handwritten will, or they've downloaded a template online, or they've gone as much as hundred dollar, three hundred dollar. I know around town you can see, I know your heavy competition is probably those signs you see on the phone poles. Just kidding, but honestly, what do you say to the, the person that has maybe gone the online route? Again, not a scare tactic, but what are some pitfalls there?

• 37:03Speaker 03

  You know, before I say that, I will say that for some people, that's perfectly fine. And, and there's numerous times, and I can count probably a handful in the last couple of months, with clients come in for the questionnaire and I want to do a living trust and I'm just like, I don't know that you need to do that. Maybe not the right thing for you, right? You don't own any real estate. You're, you may have a, a, a large nest egg in a, in a 401k, but you seem pretty comfortable with who your beneficiaries are, your contingent beneficiaries. You know, they're not minors, right? You're, you're not worried about needing a trust to control it for someone with special needs or drug and alcohol dependency, for example. And so we made shift the conversation to, you know, hey, you know, just getting maybe a power of attorney or a healthcare directive might be, might be sufficient.

• 37:47Speaker 03

  And then if you want to go online and do that, you know, do it. It's just, you know, they're, they're

• 37:54Speaker 03

  the, the, the pitfall is, is they're fairly cookie cutter. And so the cookie cutter portion works for a large, large majority of people, but for the ones that it don't, they don't. And so you, you just want to know going ahead of time if you're the one that can kind of use that. And I, and I tell people all No problem telling people all the time if it's like, hey, you don't anything complex. If you want to go do that, by all means.

• 38:17Speaker 01

  Yeah, the two things you mentioned like non-qualified funds and step up in basis. So let's talk about that. The other thing real quick though, is I think one of the, one of the things, it, it, it seems like such a complicated thing, but in reality, you're just putting things down, the way that you want to have things split up when you pass away. The medical directives, what happens to me if there's a medical emergency and those things?

• 38:38Speaker 03

  Who do I want making those decisions, right?

• 38:40Speaker 01

  And it's usually something that's not changing a lot. Cause I think some people think, well, if I do it and then like things change three years from now. What is the process of like updating or changing things? And, and how does that, is it like you're having to rehold, redo the whole thing? Or is it just?

• 38:56Speaker 02

  Are you going off the question? So, so quite perfect, Chris. What happens to my living trust if I move from Kern County to another state for retirement? Do I need to recreate it?

• 39:05Speaker 03

  Okay, so two different questions, uh, similar, but so look, I'll ask the, I'll answer the, the listeners first and then you second Chris, cause they have priority over you.

• 39:15Speaker 01

  Yeah, absolutely.

• 39:17Speaker 03

  So I always advise clients and ones that come to see me with a out of town trust is to go see an attorney in the state that you, you, um, are going to be domiciled in. So, so if you have a trust here in Kern County in California, you moved to Texas, Tennessee, wherever, highly advised to take it in, have them take a look at it, see if there's anything missing. Each state has some nuances that are a little different and so you just want to make sure you're covered. A lot of times what we'll end up doing is, um,

• 39:46Speaker 03

  if I'm meeting with a client who has a trust that was created in Nevada or Arizona, whatever, and they, they're now domiciled and they plan to be domiciled in, in California for the remainder of their life. We don't, if, let's say for example, they, they're, just call it their trust from Nevada. Let's say they have a couple pieces of property, they bought a new property in California when they moved here. It's all funded in that trust. They're, you know, they're, they have a non-qualified account that's funded in there. They have a bank account that's set up in the name of the trust. So they've done a lot of legwork in, in funding that trust. You don't want to, even if it's some changes that need to be made, you don't necessarily want to. revoke that trust and create a new one because it's going to be a lot more costly because the funding involved with re-titling all those assets.

• 40:31Speaker 03

  So a lot of times what clients will end up doing and choosing to do is just what's called a restated amendment. So it's an amendment to the trust, but it's basically a complete restatement of it. So the entirety of the trust will be redone as if it's being done in California, but it'll still be called the Pelster Family Trust dated March 6, 2005. Right? So you don't have to go and retitle the properties, the accounts.

• 40:55Speaker 02

  Interesting.

• 40:55Speaker 03

  It's going to stay the same. You just updated the terms to where you're living. So that's something we do a lot of. And again, I don't know how other practitioners do in other states when someone comes in with a California trust. But my advice is always the same. Have it reviewed. Make sure there's nothing that's missing from it, or if there's some modifications or amendments you need to make, you know, do so accordingly. But to answer your question, Chris, just a simple amendment of a trust that is done, say, in California and you want to make a change to it. It's called an amendment and you're just amending a small portion of it. So the bones of the trust is already there. You've got all the pieces in place. You've got the deed transferred over for your property or multiple deeds, if you own multiple properties, whatever accounts you decided to fund in the trust.

• 41:36Speaker 03

  That's all done. And so, you know, you may say like, hey, I did this trust when my kids were 10 and I named my Uncle Bob the successor trustee. And my kid's in their twenties now and I feel like they're competent and capable enough to handle that. So you just amend in my trust. It's paragraph 2C. So you literally just say, we're modifying paragraph 2C to say this, sign it, notarize it, throw it in your binder.

• 41:56Speaker 02

  I was going to ask what other life events other than maybe buying property? Well, yeah, I guess I'm ignorant too. So you have a trust, you own a property and then you buy a rental property.

• 42:07Speaker 03

  Yep.

• 42:07Speaker 02

  Do you have to amend the trust in order to just put the rental property in the name of the trust?

• 42:11Speaker 03

  Great question. No. So you would just take title. So as you go through, you've bought and sold many properties, right? And as you go through that process, they should ask you the question, how do you want to take title, right? And that's where we got into the earlier conversation is that husband and wife is joint tenants, husband and wife, community property, community property, the rights of survivorship, tenants in common, whatever it may be. But for your question, in your situation, you say, oh, no, wait a second. I own a trust. It's me and my wife. Here's a copy of our trust certification. Please have the deed titled in the name of our trust. So that way, as it goes to escrow, the deed gets recorded, the name of your trust gets mailed back to you, put in your binder, good to go.

• 42:48Speaker 02

  Awesome.

• 42:49Speaker 03

  Boom.

• 42:49Speaker 01

  Okay, and one of the things, real quick before that, we were gonna go into non-qualified funds, that's next. Metallica at the Sphere would be epic. Did your guest say he's seen them thirty times?

• 42:59Speaker 03

  Thirty-five, I think.

• 43:01Speaker 01

  Yeah, thirty-five. You undercut them five trips.

• 43:04Speaker 02

  Ride the lightning.

• 43:05Speaker 01

  And here's the thing, Kyle Jones just doesn't go to a Metallica concert. I mean, he embodies it.

• 43:12Speaker 03

  It's a little unhealthy, I admit.

• 43:14Speaker 01

  I mean, he doesn't just go.

• 43:15Speaker 02

  I say we put some pics on the website, help promote your estate planning business.

• 43:20Speaker 01

  I mean, isn't, I mean, estate planning attorney, that just screams heavy metal, Metallica fan, for sure.

• 43:26Speaker 02

  Do you have a tattoo, anyway?

• 43:28Speaker 03

  No, not inked.

• 43:30Speaker 01

  So, you mentioned earlier, though, about non-qualified funds, step up in basis. Can you speak to, do you remember what you were talking about?

• 43:38Speaker 03

  I do, and it is a, why it actually came up is a, one of our mutual clients emailed me, and we had just completed a trust for them, and transferred their property, you know, completed everything, good to go, notarized, you know. Great, great client, beautiful people. Anyway, sent me an email and said, "Hey, I got a quick question here," and it's something we didn't, we didn't go over because it was not something they included in their trust, but they happen to have some qualified accounts, obviously with you guys, because I mentioned joint clients. And they said, "Yeah, we went through, we made sure all of our beneficiaries are designated, our primary contingent, all that's covered, but since it's not in our trust, is there this, is there gonna be a tax issue for our kids when they, when they get that, because it's not going through the trust?" And, and I thought that was a

• 44:21Speaker 03

  great question, and something I wanted to bring up, since I knew we were going on the show today, and so, the key to it is, is the inheritance aspect of it. So whether you inherit it through a will, through a trust, through a beneficiary designation, it's still gonna get that step up in basis, meaning it's gonna get the value of that asset at the date of death, right? So whether it be through a trust, a will, beneficiary designation, it's gonna be that same step up in basis. So, the answer to this question is, no, it's not negative that they're not in the trust.

• 44:50Speaker 01

  Yeah, and the real basic explanation of that is, we're talking about non-qualified funds, we're talking about non-retirement account, so non-tax benefited accounts, not a Roth IRA, not a traditional. Not a 401k or anything like that. Non-qualified funds, you have what's called basis, what you paid for the stock, bond, or mutual fund, or whatever it is. What it will do is it will step up to the date of death so that there won't be any capital gains taxes assessed to the beneficiaries. It's a very powerful tax planning tool for people that have these kinds of investments. You say, well, then what about 401ks, IRAs, and those kinds of things? Well, Roths don't have taxes. But you will have to deplete that account after you inherit a Roth IRA or Roth IRA funds.

• 45:31Speaker 01

  The traditional IRA, traditional 401k type funds still has to come out and taxes be paid. So you don't get a step up in basis because taxes had never been assessed on those funds. The new rule on those is you have to deplete that account within 10 years if you're a non-spouse. If you're a spouse, you can actually inherit directly into your account. And then you can handle it with however you are handling your retirement assets. Meaning if you're 65 years old, you can inherit into your account, completely treat it like it's your own IRA funds. Uh, you know, if you're older though, age 73, you might have to start taking RMDs. So just to kind of break down some of the taxation of some of those normal accounts.

• 46:13Speaker 01

  Really, really appreciate you, Kyle. I, I think we're going to actually just jump into our net. If you want to stick around. We want to answer the question about gold and silver. You want to stick around for that conversation?

• 46:21Speaker 03

  Sure. I don't know what that is, but I'd love to learn.

• 46:23Speaker 01

  Yeah, we're going to talk about it. Um, we're going to skip the break. Did any other questions or comments come in?

• 46:27Speaker 02

  Uh, nope. I'm just kind of beefing with Steven over chat here. Um, it appears that Backstreet is currently playing at the Sphere and I thought, what better way? They're not playing anything. What are you talking about?

• 46:39Speaker 03

  They're singing, right?

• 46:40Speaker 02

  They're not playing.

• 46:41Speaker 03

  Yeah, I might get sued for that.

• 46:41Speaker 01

  So now you just really got Kyle.

• 46:43Speaker 02

  And I tried to, I tried to get into.

• 46:45Speaker 01

  Kyle's going to see if he can get Backstreet Boys and then get like maybe the first one of the, the new residency with the Metallica?

• 46:51Speaker 03

  No, I'll skip the Backstreet Boys.

• 46:54Speaker 01

  So the other question that did come in, it said, how is silver and gold doing year to date? And so I think that we're

• 47:01Speaker 03

  Oh, literally, they, okay.

• 47:02Speaker 01

  Yeah.

• 47:02Speaker 03

  I thought it was like a new thing you're calling the silver and gold question like, oh, is this like a surprise or something?

• 47:07Speaker 02

  It's a new segment, you didn't know that.

• 47:08Speaker 03

  Yeah, okay. So literal silver and literal gold. Okay.

• 47:11Speaker 01

  I don't know if you knew this or not, but there he is. Stephen's got his own, uh, gold and silver had been doing pretty good this year. I don't know if you guys have been paying attention. Uh, anytime that there's kind of like uncertainty ever since Trump took over, uh, some of these different concerns, uh, tariffs, gold has been on a rampage, silver has been on a rampage and, and we hear it. Okay. We always hear about the investments when they're going off the charts and it's one of the things that we've always tried to do and talk about it. Gold and silver are viable investment, meaning you can speculate on the price of those, uh, commodities. I just think many people don't realize the actual risk that is actually there, even though they maybe mistakenly think, well, it's gold, it's not risky. Well, let's talk

• 47:56Speaker 01

  about that. So year to date, gold is up about 28 to 36%. Silver is up about 10 to 30%. It's bounced around. Okay. Um, obviously gold is an inflation hedge. It's a safe haven. Silver does have some industrial demand, um, but it's very, very speculative moves. It's a little bit cheaper as far as its price. Um, so people kind of jump in and jump out of it a lot more. Gold's been on a very strong run in 2025, uh, even compared to silver, which silver typically, uh, is just more volatile and maybe does a little bit better.

• 48:32Speaker 03

  Way more volatile.

• 48:33Speaker 01

  Yeah. So silver gains vary, but can be very volatile, offers potentially higher risk, uh, versus reward profile. Um, here's some things to think about. So since 1971, gold has averaged about 7.7% annual returns.

• 48:50Speaker 02

  Write that down, listeners. If you, if this was your question, jot these numbers down.

• 48:53Speaker 01

  Yes, because I think a lot of times people don't understand that. We hear about gold when it takes off or we hear that it's been on this run the last three years. But if you go back to 1971, gold has averaged about 7.7% per year. No dividends. If you're buying coins and gold bars, there can be costs to buy it and costs to sell it.

• 49:14Speaker 02

  It's way less restrictive too, meaning We see ads on TV, buy gold now and this and that. You can't just do that with securities, right?

• 49:22Speaker 01

  Right.

• 49:22Speaker 02

  And so I think it gets a lot more hype for that fact.

• 49:25Speaker 01

  Yeah. So last 30 years, it's a 6% to 7% return. Silver has been about 4% or 5%. Last 10 years, 4.5%, silver 2.3% annual. Last 5 years, it's gone up. It's been on a rampage. We just said 20 and 30% returns this year. 7.9% on gold over the last 5 years, 4.5% in silver. So when you are hearing about everybody's making all this money in gold, we're talking about the last year. And if you're just now jumping in and buying it, you're most likely buying it where? Are you buying it low or are you buying it high?

• 49:57Speaker 02

  Way too high.

• 49:58Speaker 01

  You're buying it high. And so again, it's one of those things where typically people get prone to jump in at this point because, oh, look how much money gold is making. And most of the people are doing, oh, it's a safe investment. Well, it's not a safe investment if historically it's averaged 7% or 8% and it just did 25, which means it's prone to a little bit of a pullback, right? So don't mean to like completely discount it. It's part of a diversified portfolio. We have inflationary, you know, protected investments or tips they're called, that one of the ways that they do that are companies that either buy, sell, trade, dig for gold or whatever, and they go up and down based on what the price of gold is doing. But again,

• 50:42Speaker 01

  most of the time when you look at those returns historically, it's not very impressive.

• 50:45Speaker 02

  You taught me too when we first started working together, Chris, you know, a long time ago.

• 50:49Speaker 01

  Yeah.

• 50:50Speaker 02

  Gold, you know, you go and you can look at it and just say it's a, literally if it's physical gold, let's say it's a gold bar sitting in your safe and you just go kind of look at it. You're like, okay, cool. Is it doing anything though? That's what I do love personally about investing my money is you're putting your money into the economy. It's in companies, you work with it, you know, it's constantly on the move and diversify it out.

• 51:11Speaker 01

  Well, that's why a lot of people.

• 51:13Speaker 02

  Precious metal.

• 51:14Speaker 01

  A lot of people, you know, they convolute their political views and some of these different things into their investments. And I also tell people, I don't like blindly just like put all my faith, hope and trust in money or the stock market. But going back to the S and P 500, which was a lot of times what we share on the show about the historical returns or what the stock market does, since 1971, the S and P 500 has averaged 10 or 11%. Gold 7.7, silver 5.5. Some people might say, "Well, yeah, you're taking on a little bit less risk holding gold, so it doesn't return as much." Well, guess what, folks? The way that we talk about risk in this office, the way that we look at your portfolio and

• 51:56Speaker 01

  discuss risk is volatility. Would you be, would you be surprised if I told you that gold is actually more volatile? How we look at that is standard deviation. How much does it go up and down within a certain period of time? Silver's annual volatility can move as much as 30 to 40% in one year.

• 52:17Speaker 02

  I got something, KB.

• 52:18Speaker 01

  Gold can be as much as 15 to 20%. S&P 500 ranges around 15 to 18. So, not much difference between actually how much gold price goes up and down and the S&P 500 goes up and down. And so, I just think that many people out there oversimplify the discussion on this. Think that, "Well, if it's gold, it's somehow much less risky because it's gold." I mean, and typically that spills into like you're thinking of some catastrophic financial failure and somehow gold is going to do better than the S&P 500. But I, like, the thing that cracks me up is it doesn't seem to be, no matter how bad things get, people are spending money in our economy. They're going to find a way to buy a cellphone, they're going to

• 53:02Speaker 01

  find a way to buy purses, spend money at Costco. Costco will sell who knows what if things fall apart. They will find something to sell at a profit. So, if you own Costco stock, it's going to go up in value, you know?

• 53:14Speaker 02

  What? Here's something, here's something too. So, people see 7% gold, say 10 or 11 for S&P, they see the 7, 10, and that's just a little bit more. But guys, compound interest, listen to this. $10,000 invested in gold in 1971, $10,000 in gold '71 is worth $549,000 today. Had that same $10,000 been invested in S&P 500 with dividends being generated, $2.2 million.

• 53:38Speaker 01

  Big difference.

• 53:39Speaker 02

  Just going from 7 to 10, 7 to 11, that's why investing is so important, making sure you're getting the maximum return you can.

• 53:46Speaker 01

  Yep.

• 53:47Speaker 03

  My question was real quick. Sorry. What is $10,000 in cash in 1971 worth now?

• 53:54Speaker 01

  Six thousand?

• 53:56Speaker 02

  No, no, I'm gonna say fourteen hundred dollars.

• 54:01Speaker 03

  Oh, that much? I was gonna say half, but you think it's...

• 54:03Speaker 01

  Well, it doesn't compound, but it does lose, lose three percent value per year.

• 54:08Speaker 04

  I thought it was a dad joke. Two thousand dollars cash there is still...

• 54:11Speaker 02

  No, it's not. I'm gonna say it's eroded to fourteen hundred.

• 54:14Speaker 01

  And what if your son leaves the lights on all throughout the house, right? Am I right, guys? Hey, thank you, guys, for making what is Kyle, thanks for making our Money Wise...

• 54:23Speaker 02

  Yeah, thanks for coming, man.

• 54:24Speaker 01

  Listeners out there, more money wise when it comes to estate planning issues. We really appreciate it. Thank you, listeners, for the great questions, great comments. It spills into great conversations that can help you be more money wise. And that's our goal. If you need an advisor, we're here, eight four seven one thousand. Give us a call. Most importantly, be smart, be safe, be money wise.

• 54:49Speaker 05

  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.