AMS Full Show 7.19.mp3: Audio automatically transcribed by Sonix

AMS Full Show 7.19.mp3: 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.

Producer:
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 optimize 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.

J.R. Rochford:
Good afternoon. Thank you so much for joining us on Another Money Show. We're glad you're here. So I'm J.R. Rochford. And as always, well as most of the time I'm with Anthony Carrao and always with the one and only Sam Davis. So today we have a lot to get to. Like usual, we have some news articles. We have some doom and gloom. We also we're going to keep it pretty financial today. I keep getting in trouble mostly for my wife, but that's been going on way longer than ready. Radio show. She's like, It's a money show. You're talking about the end of the world, but you're not talking enough about money. She said last week's show was good because we talked about money. We gave solutions. You know what? She really liked the story about the blowing wind. So she did do that.

Anthony Carrao:
Don't don't lie to the audience. Nobody wanted to hear that story.

J.R. Rochford:
I'm going to do it to start off each segment. So are you ready for it now or did we get right into the ten pillars? You know, the last couple of weeks, we have been remiss on the ten pillars. So I actually I do want to start there. I do want to remind people that there's still ten pillars going on to be mindful.

Anthony Carrao:
Of why it's relevant.

J.R. Rochford:
No, I never do that. We need people to come in and sit with this person if they want to know why any of this makes sense and their situation. So, no, it's just like this whole show is a big tease to get you to sit with us. So the ten pillars, the things that we keep our eye on debt, deficit, financial markets, taxes, inflation, health care, unfunded and underfunded liabilities, the shrinking middle class, social media, geopolitical missteps, and ultimately civil war. So how do those Anthony, you're so worried about how those worried how they how they tie into finances. They all time it into finances. You know, we're we record this show on a Tuesday. It airs on Saturday. Today is actually Tuesday, the 19th of July. So listening to the radio this morning, I'm hearing that a lot of people have no power in Eli, Arizona. So Eli, Arizona. Eli, Eli and Eli Lilly.

Anthony Carrao:
Yes. Yes. Over by Casa Grande, right?

J.R. Rochford:
Yes. Isn't that where people jump out of perfectly good airplanes? Isn't that right? Isn't that where there's a big huge parachuting skydiving club or something? Anyway, so in Illinois, there's people we had a big storm on Sunday night. We had a monsoonal type storm and it knocked out power. Well, Tuesday morning the power is still out and they're talking about hopefully today, perhaps tomorrow. So tie this in with finances on a small scale. You know, everybody knows I'm very much into the Boy Scout. Boy, Girl Scout, whatever the motto, if you haven't, you don't need it. So what if you need it and you don't have it, you have a problem, you know, be prepared. What if all of these families that are that are miserable right now, you know, I mean, it's July in Arizona. What if they all had gone out a year ago or ten years ago and bought a generator? You know, and. Yes, I know then you have to store fuel. So there's other things involved with the generator. But what if they had a solar generator and now they could at least run a fan so they could stay somewhat comfortable? Well, there's a way to help people spend their money. Now, let's take it to a grand scale. What if we had a cyber attack? What if we. The country was hacked? What if we had a solar flare of a great magnitude EMP, high altitude EMP? What if something happened? Major and we're in Arizona and it's July and there's no power for any length of time.

J.R. Rochford:
Well, everybody's answer. I'm going to Prescott, I'm going to Payson, I'm going to Flagstaff. You know, there's not really enough room for all of us up there. So some of us are going to have to stay down here. And it know, really the odds of things go in that direction are not that bad. You know, I mean, we're talking about people that are lucky to have a generator right now just so they can run a fan. You know what? If there's a problem nationwide, you know, I read a lot about Texas right now. There's a lot of talk about rolling blackouts in Texas and a possible issue with their power grid. So if you're listening to us from Texas, which I know most of the state is, I would go out and get a generator, you know, and again, you know, you got to look at the whole picture. You know, with fuel, you got a cycle of a fuel, you could spend more money and get a fuel which lasts longer. You should buy stabile. All of this is tied in with your money. You know, we talk about possible problems, but we always try to follow it up with solutions. So one of our solutions today for all your problems, buy a generator, you know, spend the extra money and buy a solar generator.

J.R. Rochford:
What if the you know, what hits the fan and there's you know, there's any kind of a big problem. You know, people say you might need a generator, make sure it's solar. You know, and my thinking is not because I'm going to run out of fuel. My thinking is because of noise. You know, if we ever if this country ever did go into civil war, you know, i.e., Venezuela, like look at Sri Lanka right now. I mean, look at the rest of the world. The world's having problems. So if we have problems, do you want to hear about those problems? I thought you want to hear about the wind blowing. So one one. Our office manager, Kiana, just yesterday she reached out to a friend of hers, a college friend who lives in Germany. And it was pretty interesting. She asked if everything's okay there. You know, we're hearing that things are changing. Her friend is very concerned. Her friend said that if she had the way to do it, if it was reasonable, she'd get on a plane now and come here. And it was so funny because Kiana starts laughing. She's like, Are you sure you want to come here? Like, you know, we're only days, weeks or months behind Germany, you know, whatever they go through.

Anthony Carrao:
So in Germany, I'm in Germany.

J.R. Rochford:
They're having power problems there. They're having problems with power and water and inflation. They're talking about hyperinflation. And they're they're in the early stages of some big problems over there. So and Russia is going to cut off some energy supply and things look like they might get worse over there. So, you know, I mean, I really haven't even had time to comb through what's going on in Germany. But the little bit I've seen all of it's bad. So, you know, once again, in this country, we are sound asleep. You know, it's normalcy bias. We don't think it could happen here. It's always somewhere else. It's always somebody else's problem, you know, until it isn't. You know, my old thing in financial planning, it's like, you know, people that have have gone broke, people that have filed bankruptcy. A lot of people have good incomes, good assets, you know, how did you go broke? Well, really, really slowly. And then all of a sudden, you know, things snowball and change and things happen. So, you know, a couple of things. Let me get the doom and gloom out of the way right up front, because I really do want to go financial. I really do think that a couple of the comments ahead are right. You know, that's great. The world is ending. We're all going to die. Chicken Little sky is falling. But when I mean, when's the when when are things going to break? I don't know. I mean, if I knew that I might not even be here talking to you right now, Anthony and Sam, I might be in a little spider hole.

J.R. Rochford:
Love what Sam said. Instead of putting my head in the sand, I'd dig a big hole and put my whole body in the sand and maybe even cover myself up. So, you know, every night, every day I'm looking for articles that kind of give me an idea of what's going on. You know, obviously I look for the negative stuff. You know, that's a it's more interesting. And B, it's the stuff I'm always every single day. What I'm looking out for is a black swan event. You know, we're watching the ten pillars. I mean, who doesn't think the middle class is shrinking? Who doesn't think that inflation's a problem? Inflation just doesn't seem to go away, you know? And duh. I mean, we can talk about that every show, but people are feeling it. You know, if if you're dramatically wealthy, you're going to get through it, all right? If you have nothing, you're probably not feeling it that much because you're getting a lot of help if you're in the middle class. Pam, you're getting hit right now. Food, gas prices. I bought popsicles yesterday. I think this is a very important financial topic. I bought popsicles for Jay. He had a sore throat. So I go to Albertsons and plug for Albertsons. Don't forget Albertsons. You're my store and we are still looking for sponsors. So go to Albertson's to get him popsicles. The shelves are pretty bare. Like it was amazing. There's not a big selection of popsicles. And then the box that I bought, $6.50. So I don't I don't really don't know what's in a popsicle.

J.R. Rochford:
I think it's like mostly water, maybe some flavoring food dye, sugar. I don't know what it is, but $6.50 for 12 popsicles. I was like, Holy cow, that's really expensive anyway. So yeah, yeah. Inflation back to my doom and gloom. So yesterday and Anthony, I think I sent this to you a couple articles. I'm just going to read a little bit on a couple of them. Just because this is the kind of stuff I'm watching for that is not all over the news. Here's one from The Washington Examiner. This is yesterday, July 18th, 2022. Dhs and ICE purchased vast quantities of cell phone location data. So. So what? I mean, you know, everybody's heard of the NSA. Everybody knows everybody's watching you. Some people use DuckDuckGo as a search engine instead of Google. So they're not tracked. Well, you know, we're so used to things being so manipulated, so vulnerable, we just we just move on. I mean, we don't even think about it. This this slowed me down a little bit just because of some of the numbers. Let me read just a hair of this. Newly released documents reveal that the Department of Homeland Security has extensive access to people cell phone, location, data, agents from Customs and Border Protection and Immigration and Customs Enforcement had access to 336,000 location points via data harvested from hundreds. This is the part that slowed me down from hundreds of millions of mobile devices, according to documents released by the American Civil Liberties Union. And it goes on. I mean, this article is kind of shocking. Again, if you want.

Anthony Carrao:
To find D.B. Cooper.

J.R. Rochford:
Oh, gosh, I hope so. Yeah. Is he still missing? He's next to Jimmy Hoffa somewhere. So. And then there was another one, this one I think you pronounce it Engadget. Maybe it's Engadget, I don't know. But there's another publication. Records reveal the scale of Homeland Security's phone location data. The numbers match up 336 location points. And this one. Yeah, it's just.

Anthony Carrao:
What does that have to do with my 401k.

J.R. Rochford:
What it has to do with.

Anthony Carrao:
My finances. Tell me about. My finances.

J.R. Rochford:
Everything is inching closer to changes in our country and our government and our populace. The polarization, everything just keeps marching closer. And when there's a big change in this country, i.e. there is civil war, i.e. the banks do close their doors, there is a bail in. All of these things are going to crash. Your 41k. That's what I think. All of these things are going to make your dollar worth less or worth nothing. It's all going to tie in to finances. And these little articles, it's like, Ooh, scary. What do I do about it? Well, I already told you what to do about it. Buy a generator. So, you know, when. When things are going south, have some extra food and water. I'm not going to get away from that thought, at least until the end of this year. And no, Anthony, I don't think a light switch is going to be flipped on on January 1st, 2023. But I do think we're going to go through some tough, tough times, so be ready.

Anthony Carrao:
I think there's a lot of stuff going on in the world that you can't control. But what you can't control is your personal finances, keeping stuff at home, keeping food and water at home, having access to money and cash at home. Because I mean, money in the banks, just yours. In theory, cash in hand is cash in hand.

J.R. Rochford:
Yes. Let's take a break and then let's resume right there and move on. So make sure you find us at another money show dot com. Make sure you email us team at another money show com or set up an appointment. Let's sit down and work on your personal situation.

Producer:
Remember, all of J.R. and Anthony's listeners receive a free financial consultation just for listening to the show. Visit another Money Show to learn more and schedule an appointment. Thanks for listening to another Money Show and subscribing wherever you listen to podcasts.

Producer:
Do not get up. At Rochford Associates. We know you've worked hard to earn your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, J.R. Rochford and his team of specialists have been helping individuals, families and business owners find financial freedom at their veteran owned firm for more than 25 years. Give us a call now at 6235230444. That's 6235230444. Wouldn't you love another Money Show? You would if it were as good as this one. This is another money show with J.R. and Anthony.

J.R. Rochford:
Thanks so much again, as always, for being with us on a Saturday. We appreciate you taking time out of your weekend. So cut more things. Finish up my little rant about articles. Another one that I read. Let's see here. This one is from ZeroHedge. Just 30% of left leaning journalists say every side deserves equal coverage. Well, that sounds awfully political. Left I mean, left leaning. But then you go further and it says a majority of us journalists say every side doesn't always deserve equal coverage in the news. Well, how does that tie into my finance? And I get it, Anthony. I mean, we are a financial office. We are a financial show. You want things to tie in to finances? I get that. It's all of this stuff coming at us. Then you'll see everything coming toward us is going to change the landscape of our nation and that is going to directly lead to your finances. I mean, you know, you came in the office four years ago. I was warning you about inflation and taxes four years ago. You know, I mean, I don't have a crystal ball. I can just tell you, I mean, you know, certain things are overdue and here they are. So I downplayed it. Perhaps I wasn't strong enough with telling you, watch out for what's coming. And now I'm telling you, I think there's an everything bubble. I think everything is going to start getting weird.

Anthony Carrao:
Know, I think I've kind of figured out the best way to sum up what it is that you're trying to get out to these people, you know, listening to us. And it's you say this all the time, you know, first is your health, but right under your health is your money. In order of importance, if you really think the world's collapsing, you know, civil war is a possibility. Food shortages, water shortages. Well, at that point, then health takes priority. And all the advice we're giving is how do you better yourself financially? But it's really talking about sustainability for your just livelihood in general, because if things do get as bad as you think, there's a possibility, then all of a sudden your 401. K really doesn't matter as much.

J.R. Rochford:
Well, and you're right. I mean, your form K matters in that it gives you options. You know, what does everybody in life need more of, you know? Yes. Health. I mean, what are we all need more of time and money. You know, if you have a41k and you lose half of it, you've got half the opportunity to do stuff with it. You know, we had a we had a person come in the office yesterday who wonderful man, you know, he's he's lost $100,000 in the last six months on a roughly $500,000 portfolio. I mean, you know, you lose 20% in six months. That's 20% less for future, for income, for retirement, for emergencies. If if the ship does hit the sand and we have to do things and your form K is worthless, pull it, you know, buy a tower garden, get yourself out of the city. You know, out of all the people that listen to us, I don't know, maybe 98%, they'll never do anything different, you know. But if we get to 2% of the people and they protect and grow their wealth and they they you know, even if I'm wrong and things don't get sketchy in this country and we don't have to worry about hyperinflation or food shortages, if nothing of that, none of that happens.

J.R. Rochford:
This is still everything that we talk about. We one person, one couple, one family at a time. We want a better year situation. We want to make sure you're doing what's best. So even if things are okay, we still why are we here, you know, help you increase the safety of your assets, increase your income, reduce your taxes. That's you know, we're still going to do that no matter what we do for you, you know, when we help you with how to safeguard money. You know, Anthony, years ago when you first got here, part of part of what you gravitated towards was a lot smarter than most people do with their finances. You look to these for one case, you looked at these mutual funds, you looked at these IRAs, and your observation was they're all invested. You know, everybody tells you don't try to time the market, you know, stay invested. So the problem that you found years ago was, let's say I'm all invested and 20, 22 pops up and the market's down ten, 15, 20% and I'm all invested. Yes, I did shrink by ten, 15, 20%, but I don't have any cash on the sideline for these opportunities. So you were telling people years ago when their money was way up to take money off the table, sideline it and have it ready in case there's a market correction.

J.R. Rochford:
You know how many people are doing that? They're like, you know, people think there's you always need to be invested. You were saying, no, that's not true. There's a good and a bad time to invest. So you were telling people to have cash ready? You know, my little doomsday equation, keep your powder dry. You may need it. You know, keep cash. So the people that have cash now, you know, they can dollar cost in to this this pretty horrible volatile market and by the way, you know with the financial markets. Again, you know, we record on a Tuesday, last Friday, the market was flying high. I think the Dow, which is only 30 companies, was up something like 600 points. You know, right before we started recording, the Dow is up like 500 points. You know, first of all, that that means very little to me. You know, the economy is not the stock market and the stock market is not the economy. I love your thing. You know that you did a couple of weeks ago with the what was it, Tesla? You know, Amazon.

Anthony Carrao:
Was a Bezos. Yeah.

J.R. Rochford:
All right. So Amazon is saying the company is not the stock of the stock is not the company. Amen. You know, I mean, the financial markets, first of all, they're somewhat manipulated, you know, i.e., look up plunge team. You know, the Dow Jones is only 30 companies. What what mechanism? Every single Friday in this country, the stock market has a big influx of cash. It gets money. So why is that? Well, because some people get paid every Friday. Some get paid weekly, bi monthly, bi annually, whatever. But every Friday there's money going into our for in case. See what I'm going with this. So you're you're putting money into something, whether it's failing or flying high, you're you're adding money to it that floats it higher. So that's pretty good. And, you know, the the whole thing with these financial markets, you want to be proactive and not reactive. You know, people are asking us now was did we get to the bottom? You know, was this our March 9th of 2009 already? Is this the time to get back in the market? I don't know. Without a crystal ball, I don't know. My gut feeling is absolutely not my gut feeling. And no, I'm not giving any specific advice ever. You know, I mean, when we sit with you, we'll look for specific advice. But I can tell you right now, until we get through the you know, the numbers are going back up with the virus. We have the midterm elections. You know, we have all these different things going on. It's like, no, right now when things are very scary, it's probably not the time to start time in the market. You know, time.

Anthony Carrao:
And everything is a bubble, too, like this, like right now. Do you think anybody is really hurting? Like nobody. In 2008, there was carnage, a dot com bubble, there was carnage. This is, you know, a drop in the market. But where is where is the effect? Are people really feeling this because.

J.R. Rochford:
They're not feeling it? Yeah, but why? I mean, gas prices are hovering around $5. Everybody's all happy and taking pictures for Facebook because, ooh, I only paid $4.79. You know, you were just freaking out, taking pictures on Facebook when you paid like 529 and now it's down a little bit and you're taking pictures again because it's such a relief. It's like, why aren't they feeling the pain? You know, when you look at 2008, when you look at 2000, we didn't have 30 and a half trillion in debt on the books. I mean, this is way worse when you look at the housing market. You've got young families that are trying to compete in the housing market, buying a starter home for $300,000, you know, buying a decent home or.

Anthony Carrao:
Yeah, yeah. Try to find a decent anything for 300,000 now.

J.R. Rochford:
Right. So and that's why I think we're not done yet. I think we have to air out a lot of problems. You know, Sam brought up employment and how the the work place and the landscape is changing. Well, let's do this. We ran out of time for this segment. Let's take a break. We'll come back and we'll keep going with this. So make sure you find us 6235230444 or another money. Sohu.com. Thanks for being here.

Producer:
You're listening to Another Money Show.

In December, back in 63. What a very special time for me, as I remember.

Producer:
You're listening to another Money Show. No, that's the name of the show. Another Money Show. And now another money making round with J.R. and Anthony.

J.R. Rochford:
Welcome back. Thanks for staying with us. We are at another money show. If you want to find us, email us at team at another money show, dotcom. So I'm with Anthony Carrillo and the one and only Sam Davis. I wanted to go financial, but these two keep dragging me down. I said, no more doom and gloom today. I want to talk about money. I want to talk about your finances. And they said, no, keep going. So let me tell you something. Are we going the way of Venezuela? I mean, are we going the way of Sri Lanka? When you look at the politics, when you look at the oil, when you look at the energy, is are things going to get really bad? I mean, you know, look at all the political ads, the midterms coming. You know, the local elections are coming. Everybody's talking about how they're going to fix everything. Nobody's fixing anything. Everybody's talking about how bad the other person is. Don't tell me how bad the other person is. Just tell me what you're going to do. I mean, we have all this every single place I look, shootings, look at how much we've ramped up the shootings this past year. What on earth is going on? So, no, you know, I'm not ready to think everything's okay. And I need to go back to my traditional age based income tax bracket, you know, the traditional financial planning. I'm not ready to say that we need to keep going with that.

J.R. Rochford:
So I think we have bigger fish to fry. I am hopeful that we have short term problems and then long term we go back on track. I mean, you guys are both in your early thirties. I mean, for you to have a reasonable future in retirement with Medicare, Medicaid, Social Security, pensions, whatever it may be, I want that for you. I'm just a little bit nervous at this point. So. Well, and thanks for bringing me back down during the break. But why don't we get on to some financial stuff? I really want to talk financial stuff now. I want I want to be happy and positive. Let's let's talk about this for a second. So, Anthony, you bring up to people the 4% rule. And I want to I want to give a big picture thought on that, and then I want to talk about it for a second. 4% that that traditionally in financial planning, people are saying that whatever you have amassed during your working years now you're retired. If you stick to pulling out 4%, you'll be fine. And I guess, I mean, the first question I have for you, if you amassed a half a million dollars, you have 500,000 and you're pulling 4%. I'm not good with math and numbers, but that's around 20,000 in income. So the 4% is about 20 grand a year. That's pretty.

Anthony Carrao:
Good sound.

J.R. Rochford:
Okay, Jeff, I saw you take off your shoes, so I knew you were giving me backup. I get it so many times. All right, so he's got an extra one. What's up with that, Sam? 20,000 a year. That's not too shabby. Considering your retire now and then you've got your Social Security and any other sources of income. Well, that's not bad. Well, but my question, what if. 2022 comes along. And you know what? If it gets worse, what if 2023 comes along and your money gets cut in half? So all of a sudden, instead of 20,000 income, you only have 10,000 income. You know, a big deal, 10 to 20000. It's not that big of a difference. That's huge. The lifestyle difference. Yeah, it's roughly half good for you with the math and numbers there. I mean, if your money goes down significantly and you're still taking 4%, you know, that's going to be a noticeable difference. Then add to it, what if we did ever have to revamp Medicare, Medicaid, Social Security? What if we have Medicare for All and your health insurance premiums, whether you're on your own, whether an employer or whatever, what if they all go up? So now they're taking more out of your Social Security to fund Medicare. What if Social Security is not as solvent as I believe it is? You know what? If they actually have to raise the age across the board? We have to be 70 before we turn on Social Security and then that's not enough to save it. So then we take the poor, younger workers like you, too, and we say, instead of six and a half percent, you're going to have to put in ten and a half percent. And then the grandaddy, Anthony, for you and I, working in beautiful Sun City, Arizona, what if they have to cut what retirees get from Social Security? You know, you're still going to rely on the 4% rule. You know, if they cut my Social Security, I'm going to need to go from four from 4% up to 6% to have the same lifestyle. Well, but then what if.

Anthony Carrao:
I'm really generous, too? They're talking about raising it from 6% to 15%. So raising my 10% all of a sudden isn't all that bad.

J.R. Rochford:
Look at who's negative now. All sin. I'm the good cop. You're the bad guy. So the 4% rule. Do you think it's dead? Do you think it's okay?

Anthony Carrao:
Well, didn't we? One of our first couple of episodes, we had that audio clip for the guy who invented the 4% rule, and he was like, ad, that's not a real rule anymore. That's not a.

J.R. Rochford:
Thing.

Anthony Carrao:
So the yeah, I hate these rules in general because there's no 4% of a half a million or 200,000 or a million. Those are very different numbers. And if you're investing in stocks and bonds in the market and your 4% fluctuates a lot, so how do you have any sort of consistency? How do you have any sort of lifestyle that makes sense if what you're basing your 4% on is a constant flux?

J.R. Rochford:
So what's the answer to this stuff? So and I agree with you, I mean, hard and fast rules, they don't make sense to me. I mean, the rule of 100 that we all learn, you know, if you're take your age out of 100, if you're 80 years old, you should have 20% for growth, 80% for safety. If you're 20 years old, you should have 20% for safety, 80 for growth. But that that doesn't take into consideration risk tolerance, personal feelings. So well, a man that today is flying by, you know, we're we're ready for a break again. Let's do this. Let's take a break. Let's come back. We we have a little more time with everybody. But let's earn our keep. We will be right back. Make sure you find us at 623 523 0444 or another Money Show dot com. Thanks for being here.

Producer:
This is another money show. Except this one's different. This one will actually keep you awake.

J.R. Rochford:
The water running. Looking for.

Producer:
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Yes, Mr. Mandela.

J.R. Rochford:
Welcome back to another Money Show. Thanks again for being with us. Really appreciate it. So let me reference one more article. This is from July 18th, 2020 to ZeroHedge, which is if you haven't checked it out. Look at ZeroHedge. It's definitely a lot of outside of the box. Black Swan. I'm always looking for black swans at ZeroHedge. It's stuff that the main journalists are not really covering as much. So it's pretty interesting. This one recession may already be here. So when they look at the numbers, negative GDP, all these things, what does that mean to people? Very little know what what affects me are popsicles. $6.50 a box is my gas. $5 a gallon. You know, did I did I have to buy a starter home for a 3 to 400000? That's what affects me in the big picture. Whether we're in a recession or a depression or everything's perfectly normal, don't you think a lot of this country is in their own personal recession? I mean, you know, we're really not taught financial planning in our families anymore. You know, everything a lot of things, you know, people are going to tick tock and read in all these different places when they're younger. For financial planning, it's everything. The way that it's changing. We really have to adapt to it. We really have to go back to certain simple rules for financial planning. You know, when we talk about the 4%, you know, here's how to tie this in with a recession.

J.R. Rochford:
4% of what I mean, if if I inherited money from my parents and I have $1,000,000 and I want to live on 4%, that's wonderful. What about the vast majority of the country that didn't, you know, build a business and then sell it, inherit win the lottery, become a Bitcoin millionaire? What are the rest of us do? I mean, how do we get ahead? You know, we we meet with people. How our relationships begin is primarily second opinion. You know, somebody we piqued somebody's interest with something. Somebody said, go see these people. At least they'll be honest with you. When we look at statements with people as a second opinion, a lot of what we see, people have no idea what they have. They don't understand the risks. They don't understand the fees. This is all stuff that is becoming more and more important. You know, my my Big Sam, you sent us a thing that talks about well, let me read the title of it. Retirees fear running out of money more than death itself. So, I mean, that's kind of spooky. According to a survey at AIG Life and Retirement, when asked about planning for the retirement, 59% of the responders said they fear running out of money more than they fear death itself. Well, what are the solutions to this? You know, we have solutions.

J.R. Rochford:
We educate people on fixed annuities, a fixed index, annuities that can go up and they they can have good growth potential, but they're still fixed and they're safe. You know, the 4% rule, don't withdraw 4% of your money. I mean, some years maybe you can some you can you know pay off your home Anthony is huge on on helping people with how to pay off their home that's huge for him. You know the big reason is cash flow. Once you're not paying that 1500 dollars a month towards your mortgage, you just freed up $4,500 towards your income, towards your lifestyle. You know, in this day and age, when everything is so uncertain sometimes Anthony and I see it from a different standpoint. I mean, I want you to have extra money right now in case things do change dramatically. You know, in two months or six months, hopefully I'll go back to a green completely get out of debt quickly. Right now, I'm not I'm not sure. Be careful with some of the financial products you have. Over the years, I've noticed that a lot of people have financial products, but not a financial plan. You know, we talked about variable annuities. I love to take a pad of paper and a pen call the variable annuity company with the client. You know, they say it's okay to talk to us.

J.R. Rochford:
We know what questions to ask. So we ask questions most every single time. The client we're sitting with is shocked to learn what we uncover for them. Did the representative give full disclosure in the sales presentation? I don't know. I wasn't there. You know, did the person hear all of the information and they didn't retain it? I don't know. All I know is a lot of what we see, people at least need to know what they have. You know, these variable annuities, you know, let's review it with you. Right now is a great time for people to look at them because they're not performing so well. You know, if you have a decade run up in the markets, in some of these variable annuities, they have fees of 3 to 6%, but you are making 10 to 12%. You know, you thought they did great. You know, a lot of times we look at them and all of a sudden now they're not looking so good. Money goes down a lot faster than it goes up. I think we can all agree on that. I mean, it took a decade to amass this money and now people are giving it back. You know, let's let's stop the bleeding. Let's look at your statements. What do you think, Anthony? Jump in here. Help me out a little bit here.

Anthony Carrao:
Well, I mean, even fixed annuities. Just annuities in general. I mean, we've got a lot of older ones. So the downside to the fixed annuities is really the limited look. Liquidity. And it's not that there's no liquidity. It's that it's just it's limited for a certain amount of time. After you get past that, it's fully liquid. So I personally don't see much downside to them, but rates change over time. And right now we're renewing or reviewing with a lot of our clients with older annuities because rates have started to jump. So there's more potential growth, more potential benefits in some of these new ones. And getting out of some of the old ones or even some of them splitting them in half, you know, moving something to lock it up a little bit, little bit again, but getting better rates and then keeping the other fully liquid. So it's just it's always a good time to renew or not renew to review what you have, you know, on a semi semi consistent basis because things are constantly in flux. So variable annuities, we're not a big fan regardless, but even fixed sometimes there's better stuff out there, never hurts to make changes.

J.R. Rochford:
A big thing that we've always done is, is moderation. I mean, we ladder money out. We use the term ladder all the time. We want to make sure we look at your income. We want to look at what kind of tax bracket you're dealing with. We want to look to make sure you have an emergency fund. You know, when we look at a lot of what we do, you know, we're primarily retirement planning. So a lot of what we do, this is money that we want you never to run out of. You know, when they say that 60% of the country, you know, fears running out of money more than death, it's like, well, you know, what do we do about it? You know, that's great that we're scared. How do we how do we solve that? You know, you and I are big at making sure we hedge their bets. We make sure money is laddered out. You know, when you talk about even fixed annuities, you know, my my whole thing is if you do things appropriately. Wonderful. I mean, repeat, you know, keep doing things that are right. If somebody has got a lengthy, fixed and lengthy meaning, they had no upfront fees. They have no annual fees.

J.R. Rochford:
But there's a backside surrender charge. You know, a lot of these people, they they have a rider on these fixed annuities, an income rider. So there are over 59 and a half. You know, this has got a lengthy surrender charge, more than ten years in some cases on these with a lengthy surrender charge. And the people are retired. Now, it's like, you know, it may be really, really beneficial for them to turn the income on, but they just they just don't know to do that. You know, they've either not heard from their advisor for a while or they've had, you know, several different advisors on the account, you know, review this stuff. You know, a lot of what you're doing right now as the rates are changing, if people have an older annuity and the rates that great you're looking, is there still a surrender charge? You know, a backside fee if there is. But they have a window say they can take out 10%. Is it is it worth, you know, the I'll call it a hassle factor of taking out the 10% and putting it in something newer with higher rates possibly. I mean, you know, I know you're looking for it.

Anthony Carrao:
In some cases it is. That's been a big push lately just because the new rates versus the renewals are so much higher.

J.R. Rochford:
Yep. You know, I've been in the office 25 years. I mean, some of the people we have, they've they've got this money that's out of any kind of a surrender charge, you know, and you're looking at all the statements. You're looking to see if we can do better elsewhere. You know, I mean, that's in any time, that's a really good idea right now. I think it's I mean, it's way better now because there's so much uncertainty.

Anthony Carrao:
Yeah. You talk about the 4% rule and you talk about that with the stock market and, you know, all the volatility and the fluctuations, you know, your 4% isn't consistent. And if you have these assets and you're manually drawn down, there's potential that you draw down your assets completely. And all of a sudden, you have no no income source now because your assets are depleted. Annuities, you know, they can get a bad rep from some advisors. But what an annuity is, is the pension. People love pensions but hate annuities, but it's just, I guess, bad marketing on the annuity side. But those are the only contracts out there where you can set income to last your entire lifetime. Now, all of a sudden, you don't have to worry about market fluctuations and what your income is going to be because it becomes consistent and locked in and in some cases can even grow. So one of our leading carriers that we started with, especially if we know we've got a focus for pension planning, starts at 4% from age 60 to 69, but can continue to grow from there. So not only are you getting your 4% in theory, like you're told is good for you, but it actually grows. And what happens if you put in 500,000 and you start off earning 4% and taking that out each year? Well, what happens when you spend down all 500,000? You run out of money, right? Well, no. Now, with these these are pensions for life. So it doesn't matter how much money you spend. You know, it's set up to pay for your lifetime. Now, if all 500,000 gets spent during your lifetime, do your beneficiaries get any of that note? They don't. But should you pass away before that entire money has run out, then your beneficiaries can get the rest. So if you want something solid and consistent and to actually have something that you can count on when it comes to income, you know, you shouldn't be using the stock market for income. Stock market should be used for growth and diversification, but not income needs. Income needs. You focus on pension planning.

J.R. Rochford:
Right? Where on the stock market can be a hedge against inflation. The stock market can be for swinging for the fence outside of the box, you know, part of with annuities. Again, laddering approach is a good for all of your money. Probably not, you know. And why, by the way, do annuities have a bad reputation? Part of it is because a lot of the stronger voices that are anti annuity, they don't sell annuities. I mean, the one that comes to top my mind is a guy that he only does manage money. So basically he wants he wants his 1% or whatever it is year and year out. So he says annuities are bad, but yet he was a big investor in annuity companies. You know what? Everything you said, these people, the people that are worried about running out of money, these can solve that. They're at an insurance company. They have an insurance component that says we can offer you lifetime income, income you can never outlive you. Use up your 100,000 or your half a million or whatever, and you live another five years. You still get your income. What other product do you know of CD mutual fund? What else can do that? I mean, I as far as I know, nothing. So anyway, we need to start closing up for the day. This went kind of fast and I feel like it was a little more mellow than usual. I don't feel like I rant and raved enough, so I'll try to get back on track next week. And I realize part of it. I only had one cup of coffee today, and in my world that's dangerous. I mean, the energy level is just not there. We're just we're happy. People are listening.

Anthony Carrao:
Well for the time being. Thanks for joining us. You can catch us at another money show dot com. You can listen to past episodes. You can also listen to us anywhere you listen to podcast. Plus, you don't have to listen to commercials. I hate commercials. So that's what all the streaming services are for. So this is our way to not have to listen to commercials. Get up there. Check out the website, listen to all the episodes.

J.R. Rochford:
And make sure you come see us. We'd be more than honored to offer you a second opinion and help you with your personal situation.

Producer:
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Producer:
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