9.28.22: Audio automatically transcribed by Sonix

9.28.22: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. This is another money show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.r. and Anthony are committed to helping more Americans like you, optimixe their income, reduce their tax risk and reach financial freedom. So let's start the show. Here are your hosts, Anthony Correa and J.R. Rochford.

Anthony Carrao:
Here we are, your host, Anthony Creel and J.R. Rochford taking a break from our day to day as financial advisors with Rochford and Associates, a fully independent fourth generation family office right here in the greater Phoenix area, to bring you information you may not find on those other radio shows. We are aware that the last thing you need is another money show. But we appreciate you being here. Hi j.r.

J.R. Rotchford:
We do. We appreciate you taking time out of your busy weekend as always. You know, we're at noon now, so hopefully more people are hearing us. We just renewed our contract. So those of you that can't stand us, i have bad news. We're hanging around a little bit longer. So, yeah, I mean, everything we do, when you hear another money show, we say that tongue in cheek. I mean, we are anything but another money show. We are financially based. We're financial advisors. I mean, that is our livelihood. But our show, I would say it's more current events and how they tie into finances, you know.

Anthony Carrao:
Their financial planning. I mean, we spent 15 minutes last week saying, you know, set a base that doesn't involve financial planners, spend a lot of time telling people not to give us money.

J.R. Rotchford:
That is true. But I mean, and don't forget, I mean, we still do traditional financial planning. You know, the reason we offer the opportunity for people to sit down with us is because we can look at your statements. We can help you should you do a Roth conversion, you know, a required minimum distribution at 72. How do you do it? Do you take it out of one IRA or all of your IRAs? We can help you figure all that out. You know, when you're 59 and a half and you need money because the economy is so crappy, you know, what's it going to cost you? We can help you with all this stuff, but we have a platform that most financial advisors don't have. And, you know, I do scour the financial shows over the weekends a little bit during the week. We are completely different. I've had people that have tried to say that our show is political and I've been very, very careful to keep it very apolitical. I don't give a crap what side of the political spectrum you're on. It doesn't seem to matter if you don't understand that all we have left in the political structure is the haves versus the have nots.

J.R. Rotchford:
I'm not sure what to tell you. Do you think Joseph Biden cares about you and you're paying at the pump what you pay for groceries? Do you think Donald Trump cared about you? Well, I have my own my own personal political views, and I want to be careful that. I just I think that people that have millions or billions, they cannot feel what the middle class feels. And obviously we have a listenership that has people on a true fixed income. We have people with great wealth and we have everywhere in between. So we try to stick to the in-between crowd because that overlaps with the other two sides. So anybody that's worried whatsoever that gas is going back up, do you really think any politicians even really from kind of a local level up Because these politicians, they start making money, they start getting influence, they start getting power, they start getting gas cards where they don't pay for their own gas. So we really.

Anthony Carrao:
Talking about oil real quick. Didn't the barrels of oil just drop below 80 and to the low? Oh, no. Yeah. Long time prices are still going up.

J.R. Rotchford:
Yeah. Yeah. Yesterday I peeked in. Yesterday morning I put a post on Facebook. You know, my favorite news source. I put a post on there showing the barrels of oil at $77 in some sense. And yet my, my local gas station, the closest one to me is a cute, great store, by the way. Wonderful fast food and stuff. So anyway, cut it. It went from $3.69 within a month ago. And now as of two days ago yesterday, I don't know. Whenever I saw it last, it was $4.69. So I'm watching barrels of oil be at this amazingly low cost and I'm watching my gas prices go up. And I am confused. You know, I had a couple people I sounded like Lewis Black Dinner.

Anthony Carrao:
Yeah, that was thinking, I love that guy.

J.R. Rotchford:
I'm going to stick a pencil in my ear. So basically a couple of people comment on the post. Some made it political, some made it saying that California oil refineries are pumping out less. I get that. But the price change in three weeks versus the future contracts and barrels of oil, you know, the whole thing doesn't make sense. I've always noticed that when you know anything is going on, the gas prices go up right away. You know, the gas stations, they used to go out with a stick, a long stick, and they would physically change numbers. And if there was even talk of something going wrong, they're out there with the stick, early morning changing numbers. But then when things are okay, the numbers would go down really slowly. So, you know, you know, one person put it's oil company greed, it's gas station greed. You know, gas stations, you know, most of them nowadays. Wah wah. Which, by the way, I don't want to get too far off track, but did you hear about wah wah last weekend with a little party.

Anthony Carrao:
Kids storming the the wah wah? And is it Pennsylvania?

J.R. Rotchford:
Pennsylvania? Yeah. Over 100 of them stormed that store and made a little bit of a ruckus. By the way. I mean, welcome to your future. That's what. Yeah, Philadelphia. Jim just said Philadelphia. So bottom line with these stores. They make their money on food, they make their money on other stuff than gas. So I don't think that's the gouging is the biggest problem. Could it be part of it? Sure. But anyway, long story short, with the politics, we try to avoid it. We want to make sure we're keeping our eye on the money. And I hate to say it, but everything is intertwined. Your borders, your health care, politics, everything is intertwined. So. All right, let's get into we the last couple of weeks, we've actually done some financial planning material to start the show. And I love that because we really do need to help people. We need to make sure people know that we're not just doomsday bunker, doomsday prepper, end of the world people. We do think the world's ending. Do you want the date? You want me to give you a date? I'm going to say October 9th. Let's go with the ninth, because that's like a week and a half away. So, you know, hurry.

Anthony Carrao:
You moved it up. It was January 1st for so long.

J.R. Rotchford:
Well, it's still January 1st. That's when the light switch gets flipped. I know you love when I say that, you know, come January 1st, everything's going to be okay. So and by the way, I mean, I will save this for later. But I referenced a there was an executive order number 14067 that President Biden signed on March 9th of 2022. And it had deadlines in it. You know, I read Section four, the one that that refers to the digital currency, which is definitely appears definitely to be coming. But I started looking at it again last night. That's what I do when I can't sleep. You know, instead of sitting there on Facebook, seeing what everybody else is doing for lunch and where they're traveling, I read executive orders. So on this executive order, what I really noticed last night was there's deadlines. There was 180 day deadlines to have these different branches of government give reports on what will happen with the digital currency. Well, that would have been September 9th. But then there's a 210 day deadline, which will be coming up on October 9th. That piqued my interest a little bit. It basically said within 210 days of the date of this order provide to the president through AP, NSA and the AP. I mean, I love all this stuff. A corresponding legislative proposal based on consideration of the report submitted by the Secretary of Treasury under Section four B of this order. Have you ever noticed, whenever there's an executive order, whenever there's a legislative piece, a bill, have you ever noticed that they talk page after page and get very little done? I mean, what it really should say is we need to have this wrapped up by October 9th. I'm moving the light switch up to October 9th. We're all going to die on that day.

Anthony Carrao:
So what is it? I mean, what is that October 9th deadline for?

J.R. Rotchford:
That means yay or nay, yay or nay digital currency. And I can already tell you, over a year ago we said yay on digital currency. I honestly don't think it's going to be implemented for the next year or two years. But the government behind the scenes is getting it so ready. I mean, the battle between inflation, a hard landing, a soft landing recession, some people are finally saying the D word of the word depression. So basically, when all the chips are lined up properly, we are going to a digital currency. Yes, that is my opinion.

Anthony Carrao:
Think of what you just said to with oil. You know, they used to or gas prices, they used to go out with a stick and manually change it. But now they all have digital signs. So now it's a click of a button and you've changed your oil prices. It's essentially what the currency, you know, you go through the Fed, you do everything you need to do to manipulate the market. It's going to be a lot easier for them to make the changes they want at their will digitally.

J.R. Rotchford:
Well, and they've already trained us. I mean, nobody's got cash. You know, we've got Apple Pay and we've got our credit cards. Just touch the machine and boom, money goes out. I mean, I went to the Cardinals game last Sunday. Yes, I am still in pain over that. I haven't been to work since I haven't taken a shower. So anyway, with the Cardinals game, if you go to get a beer, if you go to get popcorn, whatever you do, they don't accept cash. If you buy a 5050 raffle ticket, whatever you're doing in that statement stadium, they are completely cashless. I'm sorry, but that's kind of weird. It started out because COVID money is dirty. Buy, buy, buy, buy, buy. And now it's like we have gotten rid of cash. You know, everybody is doing online Bill pay online banking. By the way, if you want a 16 ounce regular Budweiser with no tip, but just with tax, $11.02 if you want a hoppy. Not I was looking at all the prices in the totals. It is $14.33. And then something interesting, they they put a tip button so you can tip on top of your $14 and 33% beer. And it used to be where it showed like zero 10% 15 other they moved the zero.

J.R. Rotchford:
So now you have to put other and then look for the zero to put a zero tip. So it's interesting, the psychology of the stadium. It's interesting the psychology of cashless ness. Out of convenience. We've brought it on. So we've already gotten ourself trained, you know, in March, April of 2020. Also, when we start learning, there's a change shortage. We work in some city. Anthony Every single house, everyone. I'm not talking 99.6%. Every single house has change in it. All they would add to say is we need help. Turn it in or we'll give you 5% bump up instead of going to one of those coin machines and we'll take 10%. We'll give you a 5% bump up if you turn in, you know, $500 worth of change, we would add change coming out of our noses. So it's all training us anyway. So we do want to kind of start today because you can probably tell I'm fired up. I've got three articles I want to reference. I've got some current events I want to talk about, but I do love the fact that we did some actual financial matters the last couple of weeks. I credit you with that. All I would do is rant and rave about what's wrong with the world.

Anthony Carrao:
Well, if they want to listen to the financial planning, they can check out our podcast and our our past episode because we got into it quite a bit and it was basically just about setting a foundation. The episode is called Building in Foundation for Future Uncertainty, and you can find that wherever you listen and subscribe to podcast, you can also find it on our website at another Money show dot com. And we're going to head to break. But in the meantime, check out the website, another Money show, or you can reach out to us directly at team at another money show dot com.

Producer:
Remember all of JR and Anthony's listeners receive a free financial consultation just for listening to the show visit another money show dot com to learn more and schedule an appointment. Thanks for listening to another money show and subscribing wherever you listen to podcasts. So much fun holding hands and skimming stones. How to know Go another weekend, another money show. Visit Another Money Show.

J.R. Rotchford:
Welcome back to Another Money Show. Thank you so much for being with us. So as you know, another money show is kind of tongue in cheek. We are anything but another money show, but we really are glad that you joined us. So when I talk about traditional financial planning, the reason I love what Anthony did the last couple of weeks is we don't want you to think our entire life is consumed with all of the stuff that you hear me saying. I just know that we have a platform where we can sound alarms, we can get people covered. You know, I look back over the last four years that Anthony's been with me and our clients over the last four years that thought we were on the right track. They didn't lose money this year. Let that sink in for a second. Our clients that we told to dollar cost average out of the markets our clients that we said something is wrong. We really think you need to be safer. By the way, we did a presentation in January of 20 telling people there's this, you know, it might be nothing, but there's this little unknown virus making its way around the world. We told people they might want to know what they have. They might want to know what their risks and fees are. We'll be glad to be a second opinion for them. That was in January of 20. We all know what happened in March and April of 20. Our whole thing is proactive over reactive and I feel like we've really done a good job. You know, it's painful to be wrong. I mean, when you're telling people to be safe, when the markets are setting all time high, after all time high, it's painful. But when you have 2022 January through September now, so three fourths of the year and people are losing 20 to 30% of their money, all sudden the pain goes away and we feel like geniuses. Well, we don't feel like geniuses, but you know what I'm saying? We feel like we're on the right track.

Anthony Carrao:
Yeah. If you can still lose money by dollar cost averaging out, you know, when just talk about not losing money, it's back to those fixed indexed annuities that we were talking about last week. I mean, if the market goes up, you get a piece, they limit your upside and that sounds terrible. I don't why would you want to limit your upside potential? I want to earn as much money as possible. But what they're doing to compensate for that is they're taking away the downside. When the market goes down, you don't lose for that year. They've got annual point two points, they've got monthly, they've got two year. But basically in that time frame, if the market goes up, you get a piece of the pie. If the market goes down, they eat your losses. So it's a wonderful tool because not only does it allow you to grow your money safely, but it can be turned on to for a lifetime income stream, which if if you remember the foundation we were talking about, all the different steps for financial planning, you know, once you get into retirement income should be your focus. Have excess income, your amount of assets doesn't matter, have more income than you need and your assets will grow.

J.R. Rotchford:
And what you're talking about is, is a foundation part of our financial planning for people. But there's more. I mean, think about what you've seen in the time in the office. We're talking to people about generational wealth transfer using life and. Insurance using different vehicles. We're talking to people about Roth conversions. We we're talking to people about paying down debt, buying hard assets, stuff that has nothing to do with us. But we're coaching them. You know, we're general on the show. We can't give any specific advice. But we were telling people, put some extra food and water away. What if you listen to us and you thought, Well, that's not a bad idea. The world is weird, you know, things are unpredictable. And you lived in Florida right now. You know, I mean, my understanding, Hurricane Ian is supposed to hit somewhere around 11:00 or noon Arizona time. You know, I mean, that's scary stuff. If you have a generator, preferably solar and not gas, because you're looking at storing fuel and that sort of thing. If you have extra food and water, you are in better shape. Those people that had to be at Wal-Mart the last three or four days and they found very little toilet paper, no water, you know, that sucks. So we always want you prepared. We want you prepared, but not never scared.

J.R. Rotchford:
So, you know, one part of what we're doing is safeguarding money. Your passion is income over assets, lifetime income. You know, I want to talk for a second about for one case, one of the strategies that we if it fit people for the last couple of years, we've been telling people safeguard what you have. We were saying that two years ago when everybody else is out there saying buy, buy, buy, we're saying safeguard, protect what you have that allows you to take even more risk on what you have putting in. So a big part of our strategy has been protect what you have, ramp up the risk on your future contributions. You know, if the market keeps going south, you're buying in on sale, you're actually dollar cost averaging into your 41k with opportunities. Where is wealth made? Yes. Inheritance? Yes. Win the lottery. Yes. Buy a bunch of duplexes for the average person. It's made when there's problems. If the market gets cut in half and you start buying in and you wait long enough, you're probably going to be fine. If my doomsday crap comes to fruition and we're all throwing rocks at each other, you know, you may have to wait a little bit longer, but this country is resilient. We're going to come back. You know, my last one.

Anthony Carrao:
You mean by safeguarding what you have in a 401. K? Expand on that.

J.R. Rotchford:
You in for one case, you have gotten people to bring in a statement, you know, a recent statement and a list of other allocation options. You know, one of the things I've heard you say to people, each for one K must have a stable value fund or a money park money market fund. It's got to have a place to to be safe or ultra short term bonds. So that's where you kind of hide out, where you can lose less if any of your money. And then every two weeks, every other Friday when you're buying in, you have them putting in the 2050, you know, age based fund or you have them going into the small midcap, all these funds, you know, that's just smart. And now this 2022, literally for three fourths of the year, it's been more than smart. You know, it's been genius. These people not only are not losing money now, they're buying it on sale. They're doing exactly what you said they would. And by the way, I bring up all the time, if you have an old 41k, you've got it sitting there or if you've got six of them, well, you know, it's only 2000 or it's only 3000. If you've got an old 41k, don't ignore it. Let us help you. You know, you've got four main options.

J.R. Rotchford:
You can leave it as it is. You know, a lot of companies just let it sit there. You're still incurring fees and charges. You can cash it out, which usually we don't recommend. A especially if you're under 59 and a half and there's a 10% penalty and B, you're going to need it. You know, if you don't think taxes are going up, if you don't think inflation is going to be problematic, I'm not sure what you're seeing or what you're reading or the lack thereof. So you can leave it as is. You can cash it out, you can move it to your new 41k, you can take all your old forward KS and do a transfer into your current for one K, and then we would probably say safeguard that money and buy in more aggressive on future contributions. Or you can move it to an IRA. And that's usually where we we are a little bit, we like you to earn your business, we'll help you. What kind of Ira is good for you? Is it through Anthony who does assets under management type work? Is it managed money? Is it more of the safe side? Is it the foundation money? Should we be looking? What should we do for you?

Anthony Carrao:
And when we talk about IRAs, too, because IRA is just a tax code, it's not an investment. You can invest almost in whatever you want under an IRA tax code. So if you come to me and you say, well, I have a IRA, is that good or bad, you know that that doesn't tell me anything about your investment. So there are so many different ways to plan around investing those and why JR says that we prefer the 401 K. Rolling over into an IRA instead of into your new 401. K is because you have more control with your 401 K as you're limited in what you can invest in with your IRA, you can do almost whatever. But the only benefit to having more money in a41k versus an IRA is the ability to take loans out. But ideally you don't want to be dipping into your retirement for loans and there's other ways to approach that should you need money, there's other strategies, and that's other things that we can help with in this office.

J.R. Rotchford:
And we would be honored to do so. But for now, why don't we get to break time, make sure you give us a call. 6235230444. Or email us team at another money show. Thanks for being with us. And just so you know, I did the financial part. Now I'm going to start ranting and raving after the break. Thanks for being with us.

Producer:
You're listening to Another Money Show. To learn more and contact J.R. and Anthony, visit another money show. Nothin from nothing Leaves nothing. You got to have something.

If you want to be with me. Nothing from nothin.

Producer:
You're listening to another money show.

Anthony Carrao:
You are listening to another money show with Anthony Caro and J.R. Rochford. Thanks for coming back. So we covered all the really boring stuff, all the financial, the planning aspect of this. And now we're going to get away from that because, you know, you guys can hear all of that on all those other financial shows, but you're coming here for what's up to date, what's going on in the world of finances? What should we be worried about? And J.R. has got a ton on his mind like he always does. And this is actually going to be new to me because we did not he didn't send me these links before. So I am going to learn with you about what I need to be worried about in this economy. So take it away, J.R..

J.R. Rotchford:
What you need to be worried about in this economy. Everything.

Anthony Carrao:
All right. Go to break. Let's call it a day. Let's go get lunch.

J.R. Rotchford:
Yeah, we can fill this up with commercials. Right? Come on, Jim. Turn it over to Home Depot. Home Depot. Speaking of which, are you hearing that Home Depot is starting to have to lock up all kinds of stuff they're having to hire plain clothed security, Target, Home Depot? There's a huge problem, I guess, around the country, you know, more in certain states than others. More in certain cities than others. No, I'm not being political. But, you know, you have to look around you. There's there's a lot of problem with thefts and little groups of people that are doing stuff. You know, my there's a Ross on 99th Avenue and Happy Valley, which is in the North Peoria Valley. It is a really, really home alone neighborhood he plays. You wouldn't think stuff would go on. Well, I heard from a reliable source because he was there and taking pictures a couple of weeks ago. There was a group of people, they they had a vehicle or vehicles. So taking pictures of a group of people that went into Coles Michaels, Ross, the stores there and they were stealing a bunch of stuff and running out. Huge police presence, you know, yellow tape. I mean, it was a big ordeal. And what occurred to me was, you know, when a society starts changing, not for the better. One of the signs to look out for is people, especially people that don't have a lot of money and they have nothing to lose.

J.R. Rotchford:
They start doing stuff they normally wouldn't do. You know, you've had a big push in the country to defund the police. You know, I mean, maybe that's starting to come back to bite people. But I think as the inflation keeps going, there's people that are going to do whatever it takes to make sure that they can help themselves. And there's always going to be opportunists that are going to take advantage of a bad situation. So, you know, there was a carjacking at 94, 95th Avenue in northern at Park West. I mean, there it's coming all around. And you just you think a certain places are safe, but I'm not sure. So what's it going to look like in a year or two? I don't know. Hopefully it turns around and gets better, but I'm not sure. So you know, really what to be worried about. I can't focus on violence. I mean, that's that's a little extreme to talk about that I can focus on what I read yesterday. Today, I mean, Hurricane Ian, you know, what is Hurricane Ian have to do with money? Yes. I mean, we do care about the people of Fort Myers. I lived there for a while. I lived in Cape Coral for a while. You know, my mom lived in Sarasota, Punta Gorda.

J.R. Rotchford:
I'm very familiar with the west coast of Florida. You know, it affects our money. The food prices are going to go up. We forget that oranges, tomatoes, there's a lot of produce in Florida. You know, there's going to be out of state assistance once the rain clears. There's going to be people with trucks heading that way. It's going to be fuel for that. There's going to be money for cleanup. There's going to be federal dollars from FEMA. You know, it is going to affect us very much financially. You know, there's everything we ever talk about. You know, it all ties in with our finances. So back to what to worry about. You know, during the break, we talked with Jim for a second about really heavy stuff. You know, I'm I'm a veteran. I was active duty 87 and 91. I remember that time when the world started changing Desert Shield, Desert Storm. It really it made the world different. And now during the break, Jim brought up the fact that there's ships near Alaska, military ships from China and Russia. Why don't we do this before I have a heart attack thinking about what could be coming to this country in that level. Let's take a break and then let's keep going with what you should be worried about. Is that okay, Anthony? We did the financial stuff, so sounds good.

Anthony Carrao:
In the meantime, you can find us that team at another money show dot com or no, you can email us a team another money show dot com or find us on the web at another money show.

J.R. Rotchford:
What if they want to call us? Can they call us 26235230444. Yeah thanks for being with us.

Producer:
Thanks for listening to another money show. If you like what you're hearing, be sure to leave us a rating and subscribe to the show wherever you listen to podcasts. Down, maybe. Are you concerned about market volatility, rising taxes from the Biden administration and how it could affect your retirement? Then listen to another money show with J.R. Rochford and Anthony Corio. Learn how you can reduce the taxes you pay before and during retirement. Another money show every Saturday at 4:00 pm on 960. The Patriot. Schedule your free no obligation consultation now by calling 6235230444. That's 6235230444. This is another money show. Except this one's different. This one will actually keep you awake.

J.R. Rotchford:
Welcome back to another money show. Thanks, as always for joining us. So before the break, I mean, you know, it got a little heavy for a second there because during the last break, we talked about what's going on with the world. You know, one of our ten pillars is geopolitics. You know, I mean, what's currently in the news? There are military ships near the United States. They have missiles on these ships. If there is a misstep, are we ready? Is the military ready? Are we ready, our people? Do people have nascent iodine? Do they have filters they can change out in their home? There's all these different things you can do to prepare. I don't think most of us are ready at all for what could happen. Do I want it to happen? Of course not. I mean, you know, I'm never trying to bring this stuff on. I'm just trying to let people know if all you do is is go on Tik Tok and watch the masked singer or whatever it is. You're really not getting the full picture. I do try to watch mainstream news every day, too.

J.R. Rotchford:
You're not getting the main picture. You're not hearing that there's warships by Alaska. I'm sorry. You're starting to find it. Just yesterday and today, I've read three articles about intercepting warships, Russian and Chinese. So they are working together. It looks like the pipelines, if you're if you're watching current events like I am, you may have heard of these Nord Stream one and Nord Stream two pipelines. They bring natural gas from Russia to Germany. We're all hearing Europe is going to have one heck of a winter. You know, natural gas prices are going through the roof. So the problem, these pipes are underwater and they're really, really thick. So it looks like they were sabotaged. Well, most of the world is kind of starting to wonder if the United States did it to create a little ruckus over there. You know, this stuff could lead to World War three. I mean, I'm sorry to say that, but these if you look up these Nord Stream pipelines, it's going to frighten you. I mean, Poland's blaming us. Some people are blaming Russia, Ukraine. It's just it's there's so many unknowns that we.

Anthony Carrao:
Already didn't have issues with energy.

J.R. Rotchford:
Correct. Well, and look at this country. Look at the inflation here, everything. It's a small world, not just because the Internet. Thanks Al Gore. It's a small world in general. And when you look at what's going on, our inflation, our taxes, I mean, I don't want to go off track. I have I want to get to the articles I have to reference. But look around you. Everything is intertwined and none of it is really positive. It's all bad. You know, the student loan forgiveness, we've talked to a handful of people that are going to be you know, they're going to be benefiting. But the handful of people that are going to be benefiting, there's also tons of people that we're going to raise taxes that that thing was supposed to be $300 billion cost over the next ten years. Now it comes out, the budget office said, no, it's going to be 400 billion. We're throwing around the word billion like it's nothing. You do realize that 500 billion is a half a trillion. So all sudden you're looking at 30, 40% of $1,000,000,000,000 added to the 30 trillion in debt. It just keeps adding up. You add the 54 billion, whatever to Ukraine. It's just financially we are in a heck of a mess. So back to my end of the world. I want to get back to what you asked. What should be our what should we be worried about? We have been telling people for years, don't panic, but, you know, pay down your debt, buy hard assets, safeguard your monies, do your foundation.

J.R. Rotchford:
You know, we're hitting you with all these things. We started telling people for their specific situation. What should they do, how much food should they buy, where should they get it? You know, you and I took a little tour of an LDS food warehouse last week. We started looking at where we need specific recommendations for people. So we're fine tuning. How much water should you have, How much food should you buy a tower garden? Reach out to our friend Mercy. We don't get a kickback, but we she can help you. Should you buy seeds? What is an heirloom seed? You know? Should you really buy alcohol? Tobacco, gold backs, gold, Silver for barter. Should you buy life straws and purification tabs? How much cash should you keep at home? You know, an infographic was sent to me by Sam Davis, the one and only Sam Davis. I think I want to read this real quick. It's pretty impactful and then I'll move on to the articles. If trucks stopped, what could make a truck stop diesel exhaust fluid? You know, I mean, if we have a gas disruption, I'm going to read this real quick. If truck stopped 24 hours, we're going to disrupt the delivery of medical supplies to the affected area.

J.R. Rotchford:
Hospitals will. Run out of basic supplies, service stations will begin to run out of fuel manufacturers using just in time manufacturing or develop component shortages. Us mail and other package delivery will cease within one day. Food shortages will begin to develop. That's where we key in because that's going to be a game changer. If you remember the toilet paper shortages, that's that's nice. We could have made do if we have food shortages we have a problem here. Automobile fuel availability and delivery will dwindle, leading to skyrocketing prices and long lines at the gas pumps. That's 24 hours a day. 2 to 3. Food shortages will escalate, especially in the face of hoarding and consumer panic. Yep, supplies of essentials such as bottled water, powdered milk and canned meat at Meijer, canned meat and spam at major retailers will disappear. Atms. I like this one. Atms will run out of cash and banks will be unable to process transactions where we've already told people to keep cash. So that won't affect our people. Service stations will completely run out of fuel. Garbage will start piling up in urban and suburban areas. Container ships will sit idle in ports and rail transport will be disrupted, eventually coming to a standstill. By the way, are there still container ships outside the Long Beach? We have such a short memory.

Anthony Carrao:
Yeah, Yeah.

J.R. Rotchford:
First week, we're just that's 2 to 3 days. First week, automobile travel will cease due to the lack of fuel. Hospitals will begin to exhaust oxygen supplies. Second week clean water supply will begin to run dry. If we have an MP, if we have something bad. Solar flare. World War Three. Do yourself a favor. Here's a little real life tip for you. Run into your bathrooms and fill your tub. Put the stopper in and fill your tub with water, because drinking contaminated water and hospitals closing down is going to be a bad combination. So fill your tubs with water. Or better yet, go online and look for something called a water bob a water bladder. You actually have this plastic container you can put in your bathtub. I would get one for each bath tub that you can fill with water. And lastly, a week, four of the nation's clean water supply will be exhausted. So if these things ever came to fruition, it's not going to really matter what we do with our foreign cars at that time. So why don't we do this? Let me talk a little bit about these.

J.R. Rotchford:
Let's at least get to the headlines of these three articles I got ready for today and we'll see how much time we have left. First one, 30 year US mortgage rises above 7% for the first time since 2000. Fastest surge in history in history. This is from zero hedge nine 2722 So that was yesterday. We're recording on the 28th, which is a Wednesday. So let me just read the highlights of this and then if you want to talk about it for a second. Anthony Cool. If not, we move on. Less than two weeks ago we cited Freddie Mac, according to which the average 30 year US mortgage just rose above 6% for the first time since 2006. I'm sorry, 2008 with real estate brokerage Redfin, commemorating the move by saying this is the sharpest turn in the housing market since the 2008 crash. And then just a few days later, we go over 7%. The national average 30 year mortgage just soared above 7%. This was yesterday hitting 7.08 and the highest since December 11th of 2000.

Anthony Carrao:
I would have preferred I mean, these these interest rates wouldn't bother me at all if they had happened with normal home pricing before this bubble of home pricing, I mean, yeah, no, that's great. You can get a real expensive house and it's 2% financing, but you have to pay for the house. You don't have to pay for interest. So give me an affordable home and 7% interest and you can pay that principal down. But now prices still haven't really fallen for homes. So now you're playing obnoxious prices and these massive interest rates and they're not even really massive interest rates. This is pretty normal interest rates historically.

J.R. Rotchford:
This is we're about to get to the historical average. So, no, they're not. Let me read just a couple more lines from this, because I'm going to hit on what you just said. This was the fastest 1% increase in mortgage rate history. The fact that it took place in less than a month is even more remarkable. But according to the Atlanta Fed, I love when the Fed gets involved with telling us what's going on. Aren't they the ones that caused all this? Just thinking, as of a few weeks ago, the median American household would need to spend 44.5% of their income to afford the payments on a median priced home in the US. In the US, the highest percentage on record with data going back to 2006. Well, as of today, that number is just over 50%. That's right. More than half of the average US household's income goes to paying housing payments, nearly double what this number was just two years ago. I mean, don't forget, January of this year, you could get a 30 year fixed at about 2.75231 last line that such a move can't end in anything but tears. Is obvious to everyone but the Fed, which still thinks that it can somehow avoid the most destructive of hard landings. You know, I had somebody, Anthony, at our last West Valley men's networking. Somebody asked me if I think we're going to have a soft landing know. I mean, a soft landing. Hard landing. I mean, who knows? I don't have a crystal ball, but I can tell you, it certainly seems to me like we have bigger problems coming and they're kind of all going to hit it once. And let me bring you back what we think is going to play out.

J.R. Rotchford:
The stock market is going to, we think, crash worse than it is already. We think the banks are eventually going to close their doors and do a bailin. And then we think the whole thing ends with a digital currency. That is, they're all going to end. No. Are we all going to die? No. You know, our opinion is we're going to have a lot more financial pain, though, in the meantime. So I'm going to get to one more article and see what your thoughts are on this, because I think you're going to have some thoughts on this one. This is another ZeroHedge article. This one was from September 20th, 2022. Cook County has launched It's Free Money Universal Basic Income Program. So the Cook County Board president, Toni Preckwinkle and the rest of her board announced the county's version of what is often called UBI Universal basic income. Under the program, the county will send monthly payments of $500 to $3250 to its residents who successfully apply. And I skipped some of this to be faster. Upi programs are sometimes called free money programs. Free money is a fair label because that's exactly to the point to make a cash handout with no strings attached, no work, no disability, no training requirements, no regard for how much the recipient is getting from other assistance programs. And no real questions other than household income eligibility is open to anyone 18 or older, 18 or older, with a household income at or below 250% of the federal poverty level or about 58,000 For a family of three, they're estimating that 36% of all Cook County residents will be eligible for this program. Let's see.

Anthony Carrao:
Here. Pretty terrible that a house of three under 58,000 Cook County, I mean, that's pretty much downtown Chicago area, right?

J.R. Rotchford:
Not downtown, but yeah, I mean, it's northwest. Yes.

Anthony Carrao:
But that that's very, very low.

J.R. Rotchford:
Well, I don't know.

Anthony Carrao:
I'm still kind of torn on the universal basic income, I think. Yang, when he was running for president, made some good points. The problem is we don't have the money for it. It'd be one thing if we were a thriving country to be able to do these things. But I read that article too, and that was the funding is going to be federal funding for COVID relief. Yet the president just said, Covid's done. So shouldn't that shut out the the money for this? Well, I can't imagine Illinois has money. I can't imagine Cook County.

J.R. Rotchford:
They're broke. Everybody's moving out. Yeah. No. And you know, one more line hidden in this article. Citizenship and immigration status make no difference for eligibility. They assets. You can be a millionaire. And if you didn't work for the last two years, you're going to be a millionaire and apply for this. And they are not turning you down. Come on. There's there's problems with this. And by the way, I like the area.

Anthony Carrao:
Where is that part, though? If you're a millionaire, you can get this. I thought it was if you're bringing in less than 58,000. But then again, if you've got your own your own company, you can W-2 yourself less.

J.R. Rotchford:
Let me read this from the article. It's entirely possible for a household to have little or even no income for one or several years, but be quite well off with money saved from the good years. Many professions, such as real estate development, have income. That's cyclical, and serial entrepreneurs fully expect a life of feast and famine.

Anthony Carrao:
So that's a yeah, that one's rough, but that's all we have for today. If you like what you heard, if you have any questions about the topics we talked about and want to sit down and review your personal situation, give us a call. 6235230444. Find us on the web at another money show or reach out to us directly at Teen at another Money show.

Producer:
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