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1.13.23: 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, optimize their income, reduce their tax risk and reach financial freedom. So let's start the show. Here are your hosts, Anthony Carrao and J.R. Rotchford.

J.R. Rotchford:
Good morning. Welcome to Another Money Show. Here we are, J.R. And Anthony taking a break from our day to day as financial advisors to bring you some information you might not be getting from your other financial shows. We know what you need is probably not Another Money Show. So check this one out. You know, Anthony, I know you're not on your game today. I know you're tired. I can tell by looking at you that today is not going to be a good day for you energy wise. So I will carry you as usual. I will provide the energy, you provide the common sense, sound, financial planning, and I will provide the ranting and raving. Is that fair?

Anthony Carrao:
Yeah. I was just. I'm going to take a nap on this show. You wake me up when you need.

J.R. Rotchford:
Me, I will do it. I thought you were going to leave and try to go find eggs. You know, we were talking about eggs before the show. I don't know. You know, a couple of years ago when you and I were talking about inflation and what could happen if inflation really grows legs. You know, don't forget, the government said inflation was was nonexistent. They said there for a long time. And and it kind of was you know, they tamped it down. They hid it. They took out food and energy and certain things. So and then all said it was transitory. And that was only, I don't know, a year and a half ago, whatever it was. And then it was, boom, there it is, inflation. What we talked about it and we were like, no, no, it is going up. You know, Amazon Prime that's going up. Try ordering a pizza. You know, you get a deep dish pizza from, I don't know, let's say Lou Malnati's or somewhere. Pretty delicious. Somebody sweet pizza out of Chicago, you know, to get it delivered. You're looking at $50 for a large Chicago classic. Tell me that's not an inflation. And I know, of.

Anthony Carrao:
Course, I mean, they never they're never up front and honest about the things that happen because it'll put people in a panic Last show. That's what we played clips of the FDIC. How do we gently tell people that bail-ins are a possibility and that the bail the banks are broke? How do we tell people without freaking them out? Well, they can't because people will freak out because they probably should. I mean, they also said that this is going to be a soft landing with inflation. They say anything that they can to kind of lessen the impact of what's really going on around us.

J.R. Rotchford:
Because they're foolish eggs. I mean, you know, these people, you know, put people into a panic. People better start panicking. You know, the European Union is talking about banning meat for emissions reasons or they're going to tax the you know what out of it. We said when we were worried about inflation, when I was worried about inflation, I was saying that, you know, how is it going to play out? How is it going to end if it if it normalizes, you know, like the government wants it to at 5%, let's say? Good, good, because that's what it really has always been. If it goes to the 40 year highs like we saw, you know, in the last year, seven, 8%, you know, people are a little bit worried about that. You couple that with the gas prices and everything that's problematic. My worry was if we go to hyperinflation, if we go like the rest of the world and we have problems, Argentina, Brazil, Venezuela, I'm looking at you guys. If we have hyperinflation, this country is not prepared and we're not ready. And then I thought further, I'm like, the problem with hyperinflation isn't that a cup of coffee is going to go up 1,000% or 10,000%? We are a very instant gratification nation. Our whole thing you got Uber Eats and DoorDash, You know, I can get a Starbucks mocha crappy thing delivered to my office in a half an hour.

J.R. Rotchford:
Of course, it'll be, you know, seven, eight, $9. And then there'll be a delivery fee and then there'll be a tip. So, you know, it'll be a $23 cup of coffee, but I can get it there quickly. If we have a disruption in our grocery stores, if we have a disruption on Uber eats, this country is not ready. It's going to be problematic. This thing with eggs, if we go towards hyperinflation. My problem was people are going to panic and they're going to hoard. You saw the toilet paper shortage just like I did in roughly April of 2020. You know, all sudden three years have passed by. We forgot about that. What happened to Sam Fred Brinkmann? Fried We our attention span is very, very small. So anyway, so the egg thing, you know, Costco is out of eggs. They're saying now Wal Marts are running out of eggs. When you can find eggs for a dozen, you're looking at six, seven, $8, 18 eggs, ten or $12. What I'm worried about if meat, eggs, cheese, fish, bread, all this stuff, if there's a shortage on all this and people panic, we have big, big problems coming. Whether it's going to happen or not, I don't know. And your idea about don't let people panic. Good. We're only trying to reach a portion of the people that might happen upon this show.

J.R. Rotchford:
We're not for everybody. I get that. But the people that actually like us listen to us, ask us questions. They are going to be so much more prepared for what's coming our way. And I just I mean, it's it's so simple. I don't think we're going to avoid what's coming our way. I still think we're going to have a stock market crash. We're going to have a real estate screeched slowdown. Then we're going to have a bank bailout and then we're going to have a digital currency. You know, I'm waiting for somebody to tell me how off I am. Everybody thinks I'm crazy. They always have. I mean, I've been out there shouting about Ballons since 2014. I started having proof in 2017. I started reading it to people. I forwarded things to people that showed them where I got this information. You know, fast forward from 2014. Nine years later, you and I are playing clips. The government's openly saying, you know, the FDIC meeting, they're openly saying what's going to happen. And so if you still. I like how you say it, Anthony. You know, it's not just us. Who are we? Who's Jaron? Anthony and Jim? Jim. Terrible. You know, who are we? Well, we're. We don't make any of this stuff up. We're just disseminating information and passing it along to you. So.

Anthony Carrao:
And who is Jim? Jim's the guy out there eating all the eggs. Says he's eating them four or five times a week. So if there's an egg shortage in Tampa and you're listening to this, will blame Jim.

J.R. Rotchford:
Well, and Jim's got an account at Wells Fargo, so, you.

Anthony Carrao:
Know, yeah, obviously not a very bright guy. Geez.

J.R. Rotchford:
We get it as hard as we try. We couldn't get his account number and his routing number, though, so he's not he's not too far off. So with, you know, why do we do this show over and over? We want to help people. We want to help one person, one couple, one family at a time. We're not a big, huge wirehouse where we have pressures and quotas. And, you know, if you want your free consultation, you have to call in the next half an hour. You have to do all the heavy lifting and have 250,000 or more to see us. We just want to help people. So, you know, we want you prepared, not scared. We have these things we say over and over. We want to help you protect your money and then grow it. Our order is protection, then growth, you know, not very exciting, but it seems effective. And I'll tell you part of why we do what we do. You look at the stock markets, the high frequency trading computers, the manipulation, look at the Dow Jones, you know, before that little mini micro crash of March of 2020 when the very, very steep V in the let's use the Dow Jones industrial, the Dow is at about 30,000. Right? I mean, before that little one month crash, the Dow was around 30,000. So way too high, probably by at least a third or more to high. Now, fast forward, the world is insane. We're defunding cops. We have open borders. I mean, all this stuff. And I know. Yeah. Don't make it political, chair. It's not political. It's all financial. And I can easily tie all that. So fast forward, You know what the Dow is at this morning? As I look at it, it's at about 34,000. So the world's getting absolutely crazy. And yet the Dow is higher than it was. And by the way, it hasn't moved much. All your volatility last year and you're still where you were a year ago. Go ahead, Anthony. I know it's.

Anthony Carrao:
Going to be hard. The crazy thing is, is it drop to about 18, 19 in March of 2020 and you would think, oh, in theory, now's a great time to be buying. It's down so much. But it dropped all that in one month and there was nothing that was getting better. Everything was getting worse. So we weren't ready to buy in yet because this is just getting started. This is the very beginning. Yet what has it done since then? Well, it's shot straight up. It's almost doubled since then. And what's gotten better in the economy, What's gotten better in the world? What's gotten better in the market? Nothing. But you have this massive influx of cash. I mean, 40% of the money in circulation right now was printed in the last two years. So this is artificial inflation for a market that already had no foundation. So and I had this conversation recently, too, with the client. That they are worried, right? They're seeing the year over year. They're losing 15%, 20%, upwards of 30% in this last year. And I say yes, and that's really hard to grasp. But what you have to pay attention to is that there's no reason your money should be worth what it is right now. Anyways. What was the Dow when the bubble burst in the dotcom era? It was about 15 ish, Right? And then what was it again? In 2008? It was about 15 ish. What's gotten better since then? Nothing's gotten better. It was just keeping the Fed, keeping interest rates at zero. All this artificial money, all of this printing, all of this borrowing, there was no substance. So for it to be at 34 now in these last 15 years, I mean, that's insane. We've never seen this kind of influx of cash into the stock market before. So it doesn't matter if you're down 20% right now, you still have more money in your account than you should and you should be taking advantage of that. You know, buy high, sell low. That's what people are trying to do right now.

J.R. Rotchford:
That's where they are is due. That's why we are never going to be without a job. If people could buy low, sell high, they wouldn't need us. Everybody would be rich, you know, saving money, getting ready for retirement. I look at it like dieting. If dieting was easy, we'd all be thin. If saving money and building wealth was easy, we'd all be wealthy. It's very, very difficult, you know? And we're out there screaming. We have been since you've been in the office. I was doing it before you got there. You have financial advisers that all they're doing, you know, when there's volatility, they go out and they say you have to buy the dips. That, to me is a wonderful piece of advice. You know, you can't time the market. Well, I think you can. It's just looking backwards. But they're like, well, you've got to buy the dips. Where are the same advisors when things are up year after year saying you have to sell the peaks, you can't have one without the other. And it's over and over. You know, right now, today is the 11th of January.

J.R. Rotchford:
As we record this, I know you're hearing it on Saturday, most likely, But you know, are we in another one of these melt ups? This seems to me like number four or five with a do over on your four, one K on your mutual funds and all the financial products you own. It's the market's going up again. I can't explain it. You know, I can tell you, we have very short attention spans. When's the last time you heard of Sbiff Sam Bankman-fried? When's the last time you heard about him? He was testifying. It's a world rocking story, and yet I haven't heard anything in about, I don't know, two or three weeks, you know, he testified and we didn't hear anything from it. So some of what's going on, we deserve what we get. We listen to financial advisors like they're these genius people that have the answers to help us, you know, financial advisors, they don't really make you money. I mean, they're trying to sell you stuff. So I think them money, it's making that money.

Anthony Carrao:
Yes.

J.R. Rotchford:
You know, we're going to get to a break soon. But after the break, Jim, will you take us back in from the break, playing the little clip I put aside for you, I want people to hear it's like it's a slap your forehead duh moment about what happens with people creating wealth. You either play this suite 1.3, whatever it is, billion dollar lottery. You know, you inherit, you sell a business, There's ways to get rich, but it's usually not through your mutual funds. But let's do this. Let's take a break and we'll come back and we'll talk a little bit more about financial advising so you can reach out to us at another Money. Cocom. Set an appointment with us. Let's sit down and go over your situation or give us a call. 623 523 0444 or always you can email your questions to team at AnotherMoneyShow.com. Thanks for being with us.

Producer:
This is Another Money Show. Except this one's different. This one's actually fun.

Speaker:
No adviser is going to make you rich. No. There is nobody that got rich by investing in the markets. Well, Warren Buffett didn't know he didn't what Warren Buffett got rich from was investing other people's money into the market and taking money for it. Every hedge fund manager in the world. Right. So you take a look at Ray Dalio. He didn't get rich investing in the market. He got rich investing other people's money in the market, right? They built a business and that business created the wealth for them. So if you really want to build wealth, start a business. That's how that's the way capitalism works and that's how you build real wealth. But investing is not meant to make you wealthy. Investing done correctly is only meant to take your savings and make sure your savings are growing at the rate of inflation over time so that your savings have the same purchasing power parity in the future that they have today. And when you're talking about 30 years in the future, that's why investing is so important.

J.R. Rotchford:
Welcome back to Another Money Show. We are so glad you joined us. I hope you're having a wonderful weekend. And if you're if you don't get to find our shows on Saturdays, we have a lot of people that say, Well, I'm busy on Saturdays, anywhere you find podcasts. So back to the financial markets, back to financial advisors. That clip is interesting because basically it's saying that even the best, smartest investor of all time, Warren Buffett, he's not rich because he's so smart. He is rich because the volume people went to Berkshire Hathaway. You know, he got all this money to invest. You know, when you when the wealth starts rolling in, if you like the financials of a company, if there's a say, it's a railroad company and you like their K ones and their ten KS and KS things, all these K things, if you if you think it's profitable, you can buy the whole company. Most of us can't. We can buy shares in a company and get our little proxy once a year, which means absolutely nothing, but it makes us feel good. He can buy a whole company.

Anthony Carrao:
So you can move the market when you're buying five 10% of a company, if not more. I mean, he's moved Apple, he's moved all kinds of things, didn't he? He bought a few years ago, bought a ton of Apple shares and then didn't disclose it for like a month. And then afterwards there was a skyrocket in price because Warren Buffett found it. But is funny how a lot of people claim to know how money works but don't fully understand it. I mean, we've sat with a woman once before. She sat with us. She sat with another advisor, and the advisor didn't get to know her at all. It was just a sales pitch. Oh, you're in your mid twenties. If you put away $500 a month and the market goes up the way it's done historically, you're going to be a millionaire by age, whatever little D No, she didn't have $500 a month to spare, but it's this simple. Just buy, buy, buy, buy, buy, and it'll go up and there's no real planning involved. But that's not really how any of this stuff works.

J.R. Rotchford:
No, it does work that way. It works exactly that way. Everybody's been fed the same information their entire lives. I mean, max out your 401. K, obviously you don't know what you're doing. So we're going to put you in that age-based retirement fund. You know, we'll watch it for you. You know, people they don't even know there's charges on there for on case there spreads. When you leave a job and your own case sitting there, you're like, well, no harm, no foul. The company is not making me move it. I don't know what I'm doing in any way. I'm afraid of making a mistake. We come around and we look at them and we tell you there are charges. It works on a spread. They're not billing you, but there are charges. Now we have to add all of the influx of ESG funds and all this stuff. It's like there's a lot to this and people don't know that.

Anthony Carrao:
So I sat with somebody recently, too, because the old rules of investing. Right. You just you talk about going to bonds as you get closer to retirement because in theory, they should be safer than the stock market. But yeah, but we had 15 years of zero interest rates. There's an inverse relationship to interest rates and bond values. So is that as those have skyrocketed, all of your safer bond investments have lost a ton of value. So in theory they were moving money in their 401 K to a managed fund. I'm going to retire closer to 20, 25, 20, 35, 2021 of those funds and thinking it's a safer fund. But no, it's lost just as much money as, if not more, than some of the more aggressive funds because bonds have just lost their value these last years.

J.R. Rotchford:
How many people know that? How many people are out of 100? You know what? Two or three? I'm not talking about people that are financial, you know, tax people. There are certain people that watch money and they know it of the average person, teacher, firefighter, whatever. How many people know that? Not many. And, you know, today, again, is January 11th. As we record overnight last night, all of the flights, I believe I'm not saying this wrong. All of the flights in the United States were grounded for a short period of time. Well, so today the stock market should crash, because if that's a glimpse into your future that we could literally stop travel. You know, you can't find eggs. We could have food shortages. People should be really, really panicked, are they? No, no, the market's up. I have to ask before the last break, are we into another melt up? Is this a bear market? It rally or is it legitimate?

Anthony Carrao:
Well, I think some of it still, too, is the short squeezes. I think there's so many people that have shorted the market and shorted individual stocks that they have to be buying shares to replace it. I think the derivative derivatives market is insane, but I think that's part of what's holding stuff up, is they've borrowed so much that they're forced to replenish and to purchase more, which is keeping up. I mean, GameStop, this just happened a few years ago. That stock never should have been worth what it was worth. Amc, same story, but you're forcing people into the market to buy to replenish shares that they sold that they didn't own. You know, there's no foundation to this anymore. Things have gotten so complicated. You don't really own anything anymore. You own derivatives. You own a receipt of a receipt of a receipt.

J.R. Rotchford:
That's why you should take everything you have in your 4k mutual funds, whatever. And you should buy Shiba Inu or Dogecoin. At least you own something. And it's not just Fugazi, Fugazi or whatever Matthew McConaughey would say, you know, in Everything is Keeping us, so we don't know what's going on. It's got to be intentional. There's big changes coming. You know, I just read this morning, France, get ready. You know, here come the yellow vests. France is going to go into chaos. I have a feeling soon. You know, Brazil is right now because of the election, You know, this country, this country, we look around the rest of the world and we're so isolated. But France, they're talking about raising their retirement age from 62 to 64. If you if you're any if you're in your twenties, who cares? You can't see five years out. You just need a tattoo sleeve. You need an Apple iPhone. You know, you got priorities. You need that $20 Starbucks drink.

Anthony Carrao:
How do you sound like a boomer saying that I.

J.R. Rotchford:
Am and get off my lawn. Get off the road.

Anthony Carrao:
Everybody is out there. Just buy in tattoos and wasting their money on phones. J.r.

J.R. Rotchford:
I know, but the people that are my age, they relate to that. They're like, ooh, he's right. They're doing this and they're doing that. You know, get off my lawn, Anthony. That's all I can say. Get off my.

Anthony Carrao:
Lawn. I've seen the transition for you to become a grumpy old man.

J.R. Rotchford:
I Oh, I'm going to be like, I'm not going to be five years ago. And currently and by the way, you're 77. You know, you're an old man trapped in a younger man's body. So, you know, going from 62 to 64, big frickin deal. You know, we're all in this together. You know, it is a big deal for me. I'm 58, so I can see if we change Social Security age and we think we're going to. Coming up soon. Yeah, it's not been politically popular, but sooner or later, you know that that whole program is going to have to be revamped if they say, well, sorry, you know, you did have to be 62 to take it, you should wait till you're 66 and three quarters optimally. Wait till you're 70. Get that extra 8% a year. Well, sorry, across the board. We need to change it to 75. What do you think that's going to do to this country? Half the country doesn't have an emergency fund. We are going to panic and flip out. So luckily we're going have a digital currency and none of that matters anyway. There'll be no money anyway. Know we're going to have a select group of people are telling us what we can buy, what we can't buy. But with that happy news, we do need to take a break. I say after the break, I think we should talk a little bit about taxes. Is that is that all right with you, Anthony?

Anthony Carrao:
That's everybody's Fair Tax Act that's getting introduced to the House. Definitely interesting talking about that.

J.R. Rotchford:
So if you have questions on eggs or your taxes, reach out to us team at AnotherMoneyShow.com or give us a call 623 523 0444. And we'll be right back.

Producer:
You're listening to Another Money Show to learn more and contact J.R. and Anthony visit AnotherMoneyShow.com. If I had $1,000,000 You're listening to Another Money Show.

J.R. Rotchford:
Welcome back to Another Money Show. As always we're so glad that you're listening. We're so glad that you're telling other people about us. We really need your help. We want to get to more and more people. You know, we're really this show is not about selling you anything. It's about sounding alarms, you know? Do we want to sit with you, you know, help you in your personal situation? Of course, we think you can help you. We can help you with protection, growth, inflation, taxes, eggs, whatever you need. We're going to talk to you a little bit about it. So we need to talk about taxes. Obviously, it's a mess when you have when you have to hire IRS agents to go after the evil rich. You know, everybody cheers. Do you really? It does. Anybody out there still think that they're they're funding the IRS to go after the billionaires?

Anthony Carrao:
There's there was an audit of 2022 taxes and they said that it was 5 to 1. People going after the lower IRS audits, going after the lower tax bracket versus the highest tax bracket.

J.R. Rotchford:
Five, two.

Anthony Carrao:
One, one. Going so one. You're putting a bunch of resources to people that aren't going to pay you anything. So say you catch them. These are people that already don't have money. So you're going to take what they already don't have away from them.

J.R. Rotchford:
Yes.

Anthony Carrao:
And it drives me crazy, too, because you read the article and the IRS spokesperson or whoever trying to defend and saying, oh, well, we don't have the resources to go after the rich. We don't have the resources. You have five times more resources going towards poor that can't pay you and stop going after the poor. Altogether, you do have the resources. You don't use them correctly.

J.R. Rotchford:
Are you? Send them all to Ukraine or somewhere or to Africa or somewhere. Yeah. Well. And 5 to 1. You know, first of all, that bothers me. Wait till we fully implement that funding for the IRS. And it's 50 to 1. And and we look back and we're like, well, wait a minute. I thought you were going after Warren Buffett. Warren Buffett was honest. He was like, my secretary pays more in taxes than I do. That's a problem. Well, then why do you do it? Because you put the structure in place. Donald Trump, you know, they release the tax returns. You're not hearing much about it because there's not much to it. It's like, you know, he's he played by the rules that you set in place, the big, evil rich corporations and the government and the rich 1%, They worked together to put the system in place. And then we get mad when they when they play by their own rules. Well, okay, so let's make changes. Well, boom. Here comes the 117th Congress.

Anthony Carrao:
Oh, hold on that one. That one's an old article. So that's back. So he's. That's Buddy Carter, the 117th. That was from 2021 release. Something to get rid of income taxes and just go to a consumption tax.

J.R. Rotchford:
That's what I want to talk about.

Anthony Carrao:
Yeah that didn't obviously that impasse. But he's releasing that again. There's a new one for 2023.

J.R. Rotchford:
But I want to talk about it because I've been talking about it for over 20 years. I was saying 20 years ago when I started realizing how unfair you know what, I don't know what it is. 11,000 page tax code. You know, you can commit suicide by jumping off of the book and hitting your head. I've been saying for 20 years, it's not fair. The rich have corporate attorneys and they have people that help them pay no taxes. Well, I remember when I think it was was an IBM. No, it was GE. You know, several years in a row. They paid no taxes. You sell GE had financial services, long term care insurance. They had refrigerators that everything they didn't pay taxes. I'm like, well, I do. How come Rotchford and Associates conveniently located on 98th Avenue and Bell in the West Valley, How come I paid taxes? And I think it was GE don't come and sue me. Ge Well, I guess you can. I mean, what are you going to do? So, yeah, you got an.

Anthony Carrao:
Umbrella policy though. You'll be fine.

J.R. Rotchford:
That's right. You can take my suite. Insurance money. It's not been fair. It's never been fair. Well, now we're talking about again. I mean, I realize that was that was from a year ago. But the fact that some people are finally saying let's do a consumption tax. So if I am not a very wealthy person and I buy Jim Boulden, allegedly, Jim wants to make sure we don't get sued. Everything I say when you talk about Jamie Dimon and his felonies, when I talk about the IRS and, well, whatever, I should always say the word allegedly, just so I don't get abducted in the van or.

Anthony Carrao:
The Jamie Dimon is not allegedly like it does a ton of felonies at Chase Bank. Like, that's a real thing.

J.R. Rotchford:
You still need to cover your. You know what? So let's take a break and then let's let's continue the taxes, because I have a little bit to say on this one. I know that's shocking. So make sure you reach out to us. Another money, Procom. Thanks, as always, for being with us. And we'll be right back.

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.

Producer:
At Rotchford and 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. Rotchford 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 623 523 0444. That's 623 523 0444. Are you concerned about market volatility, rising taxes, economic uncertainty, and how it could all affect your future in retirement? Then tune in to Another Money Show to learn how you can protect and grow your hard-earned money. Another Money Show every Saturday at noon right here on 960 The Patriot. Protect your hard earned money today and learn more at AnotherMoneyShow.com. 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 for being with us. So let's jump right back into taxes. I have been saying for decades we need a consumption tax. If I don't have a lot of money and I buy a pack of gum and I pay. And at the time I used to say 10% on the pack of gum, I'm doing my fair share. If you Anthony, which you are. No kids never been married. Anthony is quite a treat by the way, ladies, if you're listening and you're looking for some man Candy, we have it at Rochester, New York. So if you buy a boat or an airplane, your 10% is going to be a heck of a lot higher than it is on my pack of gum. Well, fast forward, we're 31 and a half trillion in debt. Make sure once in a while you peek in on the interweb and go to rural. What is it, a US debt clock dot org and watch that thing spin like a fan in Arizona in July. So fast forward we can't have a 10% consumption tax. What we need now is probably a 15 or 20% across the board flat tax, whatever you earn, W-2, 1099, whatever, you're going to pay a percentage and then the consumption tax can be ten or 15%. We have to start wrestling with the debt. We have to start getting back to fiscal responsibility. Is it going to happen? It is not. It is not.

Anthony Carrao:
Well, what they're proposing is not even that, because I've heard you talk about the flat tax and consumption for a while. But what's being proposed is getting rid of, you know, not even having a flat tax, strictly a consumption problem is I can't find in this 2023 proposal what that percentage would be. But in the 2021 proposal, it was 23%. So imagine everything you're purchasing, you're spending 10% on state, county, all of those, and then an additional 23 to the federal government.

J.R. Rotchford:
Well, yeah, but do you want the country to go the way of the Weimar Republic, the way of Venezuela, or do you want to fix it? I mean, I understand what you're saying. It's it's very it's a daunting task ahead of them. And by the way, I did read.

Anthony Carrao:
What the what's that return, though? I mean, what are people if you're listening to this show, what is your effective tax rate versus what that 23% is? And then you could also buy less if you have stuff coming in, you know, maybe you don't make those extra extra purchases, but if you don't make those extra purchases, how do you keep the economy going? So I'm I'm kind of torn, at least at that percentage. But for me, I mean, being a small business owner, being an LLC, I got I got screwed on taxes last year. I think my effective rate was 39%. 39% is a tax bracket for people bringing in half a million and more and millions. You know, that's just to get into those brackets. But mine was effective. And that's because as a small business owner, you get screwed on all the other miscellaneous taxes. So as much as I don't want a 23% consumption tax, I am more than happy to pay that 23 over what I had to pay last.

J.R. Rotchford:
Year, which is funny. So you're actually saying it would better your situation? A lot of people are saying that's ridiculous. It would hurt their situation. Know, I think at.

Anthony Carrao:
23 I think it would be really similar to what people are paying already. You know, I think of what I was making as an engineer, not really having any deductions, you know, a very modest middle class income. But I think I would be in about that range.

J.R. Rotchford:
So go to us dot, dot org and look at the the what we all owe on the debt as taxpayers and then look what non tax they're like half the country don't pay any taxes.

Anthony Carrao:
So I mean like you said all those businesses when they yelled at Trump and I was like well that's real hypocritical because you make those rules. But if you do it as a consumption and everybody just pays, you know, I think we're in a better position. So instead of having these massive high brackets where people aren't really paying it, it doesn't matter if you're Bezos or Warren Buffett and you're in a 50% bracket. If you're not paying that, then what's it even matter? But if you have to pay for consumption, you actually you can have it at a lower rate. But you're actually getting that money. So, I mean, I'm for it. The 23 scared me when I saw it. Again, I don't know what this proposal is for 2023, but the 2021 proposal being at 23%. It's a little scary. But when I sit down to really think about those numbers, I'm happier doing that and I get to keep my whole paycheck. I would love that.

J.R. Rotchford:
Well, and then did you read that HR 25? Because let me read one line from it. The rate of sales tax will be 23% in 2023. Here we go with adjustments to the rate in subsequent years. Okay, good. I presume that means higher, not lower. So the next part there are exempt. Here's the part that frosts me. There are exemptions from the tax for used and intangible property. Actually, I like that if you buy someone for a real shop that's already been taxed that I really get taxed doubly. No. So there are exemptions for tax used for intangible. Are property for property or services purchased for business, export or investment purposes. Who is buying noticeable amounts of property for business? Jw. You know, I mean, here we go again. They're already showing you that there's possible carve outs in this. No carve outs. Stop. Take the checkbook away from the government. Put a flat tax in a consumption tax. Stop all of this. You know why? It's never going to happen. The people that have the pen, you know, the golden rule, the people with the gold make the rules. The people that are going to be in charge of this are never going to let it happen. And look at people we know some of them, if you're a CPA, a bookkeeper and enrolled agent, you know, there's a heavy lobbyist in these people. This is their livelihood. The tax code is so convoluted that they will always have a job because I can never understand it, even if my tax return is simple and I can do a simple tax return, why would I go to a tax preparer? Because I want their signature. I'll pay $400 for my tax return to have the signature of somebody who knows what they're doing. You know, Can I go to TurboTax? Sure, sure. You know, you said 5 to 1 audits last year and we're not in the thick of this 87,000 IRS agents yet. So when they get here, when when they roll up with their their semiautomatic weapons, it's going to get worse. So, yeah.

Anthony Carrao:
Yeah. I will say, like when you read that, I do think about that, too, because the big problem is how did these massive corporations pay their share? And you're right, that's not it doesn't.

J.R. Rotchford:
Really disclose.

Anthony Carrao:
That. But, you know, attack one problem at a time. I mean, that's already a problem. They're already not paying taxes. So what can we do to at least benefit you and I and our listeners? So from that standpoint, I get what you're saying and I get why you're upset. But if this consumption tax can actually help out us, I'm happy about that. And then you have to fix the corporate taxes another time.

J.R. Rotchford:
And do we think that anything is going to change everything that gives us a glimmer of hope, every bit of optimism we have? Alston goes away. You know, I have to question something. We're changing the RMD that required minimum distribution. If you have IRAs for accept simple as those things, if you have retirement plans and you are nearing the age of 70 and one half, that was the number forever. You know what that is? You know what RMD is for the rest of you, or if you're younger, it means when you get to a certain age you have to start withdrawing from your retirement funds. Why? It's my funds I should be able to pass into my kids. I should be able to do whatever I want. It doesn't work that way. The government needs their tax revenue, so you have to take it. Well, if we're 31 and a half trillion in debt, why did they raise it a couple of years back, End of 19, beginning of 2020 to 72. Now, as of 11 days ago, it's what, 73? Is that.

Anthony Carrao:
Right? This year?

J.R. Rotchford:
And it's going to bring.

Anthony Carrao:
Back the decimal point lobbyists. We need to make it 73 and one half. Bring back those decimal points.

J.R. Rotchford:
Yeah, I am kind of bummed about going from because I used to talk a lot of crap about that. I was like, What is up with a 59 and a half? 70 and a half? Make it 59 or 60. Make it 70 or 71 is justifiable.

Anthony Carrao:
Like, all of this is dumb. So it's like, of course there's a decimal point.

J.R. Rotchford:
Yes, because that's the only thing about it that makes sense. So. But y y you know, the government, you know, I bonds you go on your computer. Last year there was a huge buzz around Sun City. I think it was 9.63% on the I. Bonds up to 10,000 Can't touch you for a year. Don't touch it for five years. Ba ba ba ba ba ba. But it was like how how the government's 30 trillion in debt and they're going to give you 10% on your money. It's impossible. It's it's.

Anthony Carrao:
Wasn't that. It's only guaranteed for like six months, I think. And those ones had like a zero base if you look at the calculation. So the ones that got released afterwards, I think we're at 6%. But they're saying. Over the course of ownership, you would make more money with that 6% one than you would with the nine because of how they calculate their interest and set base and how it's adjustment. So it's all a it's a fugazi Fugazi. You know, it's like, yeah, it's like, look at this 9%, but you're still going to get screwed. You just don't know it yet. And you mentioned, right, The wolf on Wall Street bit a little bit ago, but we didn't have a chance to talk about when you played that clip. That was the first thing that comes to mind. And we talked about that, that one. Not to be named financial advisor that advises that when you do better, we do better. It was like, no, we get paid regardless of whether or not you just lost 50% of your money. Yeah, we make more money if you have more money, but we're going to make money regardless. That's what he's saying when he's talk about Warren Buffett. Ray Dalio, they're collecting other funds to invest because you can raise up stock prices with all this volume. But at the end of the day, the commissions, that's what's getting paid. That's what's making those guys rich, not necessarily investments because he's getting paid regardless. And that was a great scene in Wolf of Wall Street.

J.R. Rotchford:
And that's how the whole thing works. The rich are getting richer, the poor are hovering, the middle class is shrinking. Every day we spend over $965 million of interest on our debt. Think about that. $965 Million a day. There's a huge machine, a financial machine that is is it's at the end of its lifespan, world reserve currency. I mean, everything's changing. It's crazy. I what do people do?

Anthony Carrao:
I mean, that's the right because.

J.R. Rotchford:
I.

Anthony Carrao:
Feel like we give this all this doom and gloom. But there's really when we talk about being prepared, not scared, you can't change a bank bailout. You can't control a digital currency. None of this is stuff that you can fix, but what you can be is you can be knowledgeable about it and we can help you put you into a position to protect as much as you can for when these transactions happen, these transitions and what what's going to happen financially to this country. You know, you have to be knowledgeable, you know, set yourself a base.

J.R. Rotchford:
Yeah, you pay down debt, you buy hard assets. You know what the other thing you do, you live for today and tomorrow. Go to the casino. I'll go with you. We'll play some pie gow poker. Shout out to Cheryl, Ron, Nick, Rob, Blake, Emma. Jim. Kip. Roberts, Christine, Darren, Aaron, Francisco. Michelle, Jamie. There's all these people that are so fun.

Anthony Carrao:
You made so many friends there.

J.R. Rotchford:
I've made friends there. I go. Once in a while I'll play a little cards. I'm having a great time. It's like, you know, the stock market. Did you take your responsibilities first? Yes. I have long term downturns.

Anthony Carrao:
Yeah, exactly. So, yes. Protect what you can do, what you can, and then enjoy your life again. You can't control all of these factors. We just want you to know that they exist. So set yourself a base, build a foundation, and then go on with your life. Enjoy yourself. There's no reason to be in a panic because J.R. will have that heart attack for you. He's panicked enough for all of you, so let him take that burden. But that's it for today's show. If you like what you heard, if you have questions on any of the topics we talked about today, if you want to sit down with us to review your personal situation, reach out to us at team at Another Money Show. Find us on the web at another money hokum. Listen to Another Money Show wherever you like and subscribe to podcast. There are no minimums. There's no cost for appointments. There's nothing to lose by getting a second opinion. And until next Saturday, enjoy yourself.

J.R. Rotchford:
So we take care of you.

Producer:
Thanks for listening to Another Money Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard-earned assets to schedule your free no obligation consultation. Visit AnotherMoneyShow.com.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC BCM A registered Investment advisor, BCM and Rotchford Financial are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investment involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
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. Rotchford and Anthony Carrao. 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 623 523 0444. That's 623 523 0444.

Producer:
At Rotchford and 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. Rotchford 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 623 523 0444.

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