9.16.22: Audio automatically transcribed by Sonix

9.16.22: 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 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.

Anthony Carrao:
Here we are, your host, Anthony Carillo 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 financial shows. We're aware the last thing you need is another money show. But we appreciate you being here. And I think we've got a good show for you today. There is a lot going on in the market, some news of inflation. We are talking on September 13th. This is Tuesday. A lot is going to happen between now and when this airs and we have a lot of opinions on those things. J.r., what do you got for us?

J.R. Rotchford:
I'm a man of very few opinions, so I don't know if I'm the one to ask, but since about 5 minutes ago, you know, welcome, everybody. I'm glad you're here with us on your busy weekend. Thanks for joining us at noon. Our newest timeslot. So, yeah, today is Tuesday. My fear every week is that since we record on Tuesday and you hear this on Saturday or afterwards on our podcasts, a lot can change. And that's that's been true every single week since we've done the show. You know, we started this in the first week of April. So we're I'm not good with numbers or math, but we're like five months into this. So our whole thing, we do realize, like Anthony said, you don't want another money show. There are plenty of them to go around. The observation I have, they're still focused on traditional financial planning date of birth, rule 72, Rule of 100. Is that because that's what radio shows should do that are focused on finances and we're missing the boat, I'm not sure, but it's our show. So we feel like we should do what we think is right and what we think is right currently is sounding alarms. We think that there are way too many problems to waste your time with another money show. So we're a little bit different. You hang in there with us. We do. We do expect one day for things to smooth out. And when that day gets here, we're going to talk about Roth conversions. We're going to talk about generational wealth transfer via life insurance. We're going to talk about all of those things.

Anthony Carrao:
Talk about all that stuff now. But that's not the focus. The focus is taking care of your homestead and starting a, you know, a base of foundation for when things get weird, because it definitely seems imminent.

J.R. Rotchford:
When things get weird, you don't think things are weird right now. You don't think we need to be selling arms right now? You know, when whenever you get mad at me because I say the thing about January 1st of 2023, you know, all I'm doing, I'm kicking the can, just like the government does with our debt and deficits and Medicare, Medicaid, Social Security. So basically, we have more pressing items. You know, when we sit with people, we address these items. We address if they heard something on our show that piques their interest, whether it's about food and water and all those things. You brought up gold backs. We talk about gold backs. We have all this information for people that they need to be aware of imminently. But then we still realize that what if, what if? And I'm going to say me, not you. What if I'm right and we are going to have a stock market meltdown, we're going to have a digital currency, we're going to have a bank bail. And what if all this stuff actually happens and I wasn't wrong? What if I was just early and not wrong? We don't want any of our clients to be surprised. Our whole theme of this show is We want you prepared, not scared.

J.R. Rotchford:
So, you know, this is a family practice. We are not a big brokerage where, you know, you got to see eight people a day. Our normal day, this'll freak people out, especially in the financial services industry. Our normal day, two, three, maybe four appointments a day. We're not trying to see four people in the morning, four in the afternoon. I mean, we take time with people. Our our initial consultations are generally pretty long. It's really always up to the to the client. But we're not the same as most people that we know. And, you know, I mean, I did work for a couple of different firms. I got to see the quotas and the pressure. I got to see what is expected of a financial advisor. And I said this last week, if you are the most caring, considerate adviser on the planet and you would never do anything wrong to a client, all you want to do is help. But you still better be moving money. You know, you better be making sales because if you don't, six months later, you will be the most compassionate, caring, honest mortgage broker in the state because. Everything in financial services works on change, basically changing money from the client.

Anthony Carrao:
Talk about news of this sales pitch. Let's talk about what's going on with these trains, what's going on with food trains.

J.R. Rotchford:
I thought that was yesterday. You know, we have short attention spans in this country. I like how you shifted my train from was was that a sales pitch? I'm just trying to explain what we're really doing behind the scenes. So. Trains. I mean, you got me with my adult ad and my OCD and all that. It's pretty simple. You just throw a shiny object next to me and boom, there it is. Now I'm talking about monkey pox. Yeah, this actually the whole last segment is going to be on monkey pox and how to avoid it, how to contract it, whatever you're trying to get done with Monkey.

Anthony Carrao:
I just sent you that clip from Greg Giraldo. The stand up comedian had a bid on Monkey Pox in 2006. So it's definitely nothing new.

J.R. Rotchford:
Which is funny because nobody had heard the term until, what, six months ago around the beginning of this year. Right. So let's talk about trains for a second. That was really good how you got me off track, pardon the pun. So this Friday, this upcoming Friday today is the 13, 14, 15, 16. So around the 16th of September, if you're listening to this, on the 17th yesterday, there may have been a railroad worker's strike. And what that means, you know, obviously, they're always over benefits and pay and this sort of thing. So this could be really, really bad, though. You know, first of all, we are in a very high inflationary period. We are in a time where there could be food scarcity, food shortages. Well, the closest I can get to an accurate number on food when it comes to trains, 62% of our food goes on trains and then it gets where it needs to be. And then trucks pick up the food and bring it to your grocery store. So if there is a train strike and it lasts any amount of time, this could bring down everything in this country. This could be the start of all the problems we've been warning you. This would be the black swan event. So what happens? We get a strike on Friday. It takes a little while to grow legs and have people talk about it. And then all of a sudden, just like toilet paper and March, April or whatever it was of 2020, people will panic. We've been telling our clients for years.

Anthony Carrao:
And radio listeners.

J.R. Rotchford:
And radio listeners for months, so nobody anywhere near me or Anthony should be unprepared. Nobody should be blindsided by this. Yet there's there still will be a percentage. So what's the alternative to the strike? We get an agreement and things move on like they are. And then we have to go back to the other poop storm that is our our country right now, health care, borders, politics, all the other stuff, you know, the other option. So either we strike and things get real brutal in the next few weeks, in a month, or else we don't strike. And then we have the other ten pillars to worry about or the government comes in and intervenes. The government, what are they going to do? What is the government, the government going to do currently? Are they going to give money? You know, we're pretty broke, but we're still getting money.

Anthony Carrao:
Unfortunately.

J.R. Rotchford:
And I have to I know this is not directly related to trains, but again, I have adult onset aid or whatever it is. So do you realize today, Tuesday, September 13th, as we're recording this today is the celebration. I believe it's at the White House. Today is the celebration of the Inflation Reduction Act. Did you know that, Anthony? It's funny because you do have to scour news to really hear what's important. If you live in the metropolitan Phoenix area, you darn sure know that the cardinals took a beating. You know, I want to say bad words today, but I know I can't. We we got our hat in it.

Anthony Carrao:
Just say it.

J.R. Rotchford:
I can't say.

Anthony Carrao:
Weird or trying to not say it and then just saying it. Just beep it out like you.

J.R. Rotchford:
Everybody else is like, Oh, he wants to say ass. I can't say it, Anthony, I'm not going to do it. So we got our hat handed to us. The Cardinals did. A lot of people today are talking about the cardinals. You know what? They're not talking about the celebration in the White House for the Inflation Reduction Act. So it's a great day to have the celebration. The numbers came out 8.3% inflation. You know, year over year. We're at a 40 year inflation high and we're celebrating the Inflation Reduction Act, which is going to add to it. You know, Jim, our producer, Jim, he brought up the fact that on I think it was MSNBC this morning said that they were slamming the student loan forgiveness. You know, half the people might see NBC, Jim just yeah. Cnbc. So half the people that you talk to think it's a great idea. Forgive the student loan. It was predatory. I mean, half the people are like, I paid mine. You pay yours, you know, if your degree is worthless. Bah bah bah bah bah. So but no matter which side you're on, we have to agree now is a really terrible time to reduce any kind of, of of taxes, debts, burdens. When they had the secure act was that. Anthony, you've got a good memory. 2020 is the end of 19, the secure act.

J.R. Rotchford:
We changed the the age when you have to draw required minimum distribution. If you've heard the term RMD, you were supposed to take that at 70 and a half. I love, by the way, the government numbers. When can I touch my IRA? When you're 59 and a half, not when you're 59, not when you're 60, because that would make the math too easy. So 59 and a half and four days and 3 hours, you can take it. So they changed the RMD from 70 and a half to 72. A lot of people that don't want to take their RMD celebrated that it's a good thing. There's a lot of people that don't want to take it. They're like, I don't need it. I want to pass that money to my grandkids, whatever. So and then also now you're making me pay taxes. That could put me in another tax bracket. That could make me pay more taxes. Now, that could change my taxes on my Social Security. So a lot of people, you know, they applauded that. What I did because I keep watching like a dummy. I keep watching the 30.8. Now, every week we should announce the debt because last week it was 30.7. The week before it was 30,000,000,000,000.6. I don't know. The numbers are unfathomable now. It's their.

Anthony Carrao:
Numbers. It doesn't matter. It's in its infancy or infinity.

J.R. Rotchford:
She's crazy, but I don't. Are we.

Anthony Carrao:
Not celebrating the Inflation Reduction Act today by dropping the market over 900 points.

J.R. Rotchford:
Now?

Anthony Carrao:
Yeah, the Dow is down it's right now as I'm talking is 917. So the market is falling.

J.R. Rotchford:
The.

Anthony Carrao:
Inflation numbers but we passed the Inflation Reduction Act. So how does how does that even work? That doesn't make any sense.

J.R. Rotchford:
And tomorrow the market will be up. You know that when we get back. Let's talk about the Plunge team. Let's talk about the Dow 30 companies. Let's talk financial for a minute. Let's talk about the financial markets. But for now, let's take a break. So if you want to reach out to us, we would be honored to help you. One person, one couple, one family at a time. Give us a call. 6235230444 or email us at team at another Money Show. Thanks for being with us and we will be back momentarily.

Anthony Carrao:
You get a minute left. What are you doing ending so soon? You can also hear us whenever you subscribe to a podcast, another money show. Listen to all the episodes, listen to us, rant about all the same stuff we're ranting about now because that's what we do best. Nothing's getting fixed. It's only getting worse. But the market keeps going up. It makes no sense. So we'll be back.

Producer:
Now remember, all of JR 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.

Got a call from.

Producer:
Another weekend, another money show visit, another money show.

Anthony Carrao:
All right. Welcome back. You are listening to another Money Show with myself, Anthony Crail and J.R. Rochford. So we're talking about the market today in celebration of the Inflation Reduction Act, because you're listening to this on Saturday. We're recording on Tuesday. The market is taking a massive hit right now. Who knows how it will actually close. But right now, it's it's not looking good and it's not looking good on the news of inflation being bad, which is hilarious because everybody knows inflation is bad. It's been bad for months, yet it's going to be official. They're going to put pen to paper. And now all of a sudden the market's like, Oh my God, the market and inflation. I should sell, I should get out, I should have cash. I should. Oh, my I how how did they not know? I hate I hate reading articles on why the market is moving the day of because whatever it is, it's magically gone tomorrow. I wish we were recording on Wednesday too. Maybe the two week show out we'll record tomorrow so we can tell you how great. Oh, my God. The numbers came out and everything is fine. Oh, but, I mean, inflation still sucks, but we don't. We don't care anymore, because it makes no sense to me. These were my favorite in March of 2020. It was like, Oh my God, everything's bad.

Anthony Carrao:
Yeah, of course, everything was way worse before. And then we're just going to shut down the economy. What's happened since March of 2020, the market has doubled. What has gotten better? Nothing has gotten better. Everything has gotten worse. But we put 40% of all the money in circulation into the market. 40% of the money moving right now was printed in the last two years, and we think we're going to have no consequences. Where do you think inflation comes from and what did that inflation build in our economy? Not a single thing. It builds up the market. The market is a bubble. It's been a bubble for the last 30 years. You talk about sector rotation. I get questions on sector rotation a lot. I love the thought of sector rotation. In normal times, yeah, certain sectors are going to be doing better during a building process and a growth process and a recession time. You know, certain sectors do better than. But nothing matters in a bubble. Nothing in the nineties, right? The dot com bubble. Find me a stock that went up in that time frame. Find me one in 2008. Find me a stock that went up. Warren Buffett, the greatest events investor of all time. And oh, my God, he's so lost 40% that Berkshire Hathaway B classes was down like 40%.

J.R. Rotchford:
But you said last week the number one rule of investing from Warren Buffett is don't lose money. And number two is like, see, rule number one or whatever. I mean. Yeah. Jim Cramer, the big hot shot on TV when he I don't know, he's investing with the streetcar. He was at one point, I checked on it. He was like 45%. It was under half of his stock picks were winners. And I just thought that was hilarious. I'm like, you're on TV telling all these dump these these people to buy different stocks and you're not even a monkey with a dart would probably be able to get half of their stock picks. Right.

Anthony Carrao:
I love. So there's a lot of financial accounts on social media and I think they're all absolute trash. But there's a meme account that's meant to be a joke and it's strictly anti Cramer. So it's whatever he says, they'll post a picture of that same stock the next week and it's down. It's like if it's a buy, then it's down. If it's a sell, then it's up. And it's hilarious because it's stock after stock after stock. So kind of talking nonsensical kind of stock picks. I've been listening to a book on the 86 Mets, the World Series champions and how garbage people they were. Well, Lenny Dykstra went from being the wild and crazy outfielder of the 86 meant to an investing guru. And they mention in the book how Jim Cramer praised everything he did, what came out later that everything was fraudulent. It was practically a Ponzi scheme. The guy was ended up sleeping in his car because the mansion he bought from Wayne Gretzky, the lights went out and the power went out because Dykstra didn't have the the money to pay the bills. So I just even back in the you know, the nineties, Cramer has not had the best track record. Plus, we played that clip a couple of weeks ago where he's talking about how he was a hedge fund manager and would blatantly manipulate the market and how easy it was. So that's always a classy act.

J.R. Rotchford:
Well, a couple of things for you. One, if you're listening to this on our website or podcast, rewind and go back about, I don't know, 5 minutes. Anthony, I was cracking up over here because you are me. You've channeled your inner J.R. and let it release. I felt like I was talking. I mean, you're.

Anthony Carrao:
Once and.

J.R. Rotchford:
Now we're happy. That was more than four years ago, but that was just so funny. It's like, I want a DNA test. You're only my stepson, not my son. But that was like I was talking. I mean, you were slamming stuff, and I like it. Usually I'm I'm bad cop you're good cop that was that was nice.

Anthony Carrao:
So I trying to give people financial advice now, especially when it comes to the market. I was like, you know, I got hit up recently about some good dividend stocks. And I was looking, I was like, Oh, they got good peas, they got good financials, they're paying good dividends. But, you know, the dividend yield goes up when stocks go down and the stock was down like 20% year to date. So of course, the yield looks better. But the problem is, again, in a bubble. Everything goes down. There was nothing safe. And if I'm out here preaching that, things are going to get just as bad, if not worse, as the dot com bubble in 2008. Then how do I. You know, if we're looking at long term investing, I can't say buy this now because I feel the market could drop today and not stop for the next year at any moment. Now, has it? No, I've been wrong. But again, if.

J.R. Rotchford:
You haven't been wrong, you know, let's go back and forth on this a little bit. I mean, one thing you have been wrong just for the simple fact that money goes down so much faster than it goes up. So when you've cautioned people that there's a lot of things in the background that don't make sense and perhaps, you know, obviously we can't give specific recommendations, but in general, perhaps people should be safer than not. They should be aware and nimble of what they own. They should understand their fees. I mean, really, if you don't understand it, should you own it? You know, that's that's kind of a good question. Most people don't get that. You know, there's there's also there's so much manipulation. When I came into this this industry, there wasn't high frequency trading computers. You know, we didn't have this massive, huge issue of stock repurchasing, also known as stock buybacks. You know, I still educate people on the fact that the Dow Jones is 30 companies. I mean, 25 years later, I'm still telling people you're working with a rigged game at its base. So no, I mean, we you know, and we have solutions and alternatives.

J.R. Rotchford:
You manage money. I mean, you have assets under management, they call it when you manage money. I've watched you for the last four years. You've been asking people to keep extra cash for opportunities. You know, I mean, that's that's just good advice. If this correction, which certainly this year seems to be here and we're not convinced it's over yet, no matter what the last week said, if you have a bunch of money ready for opportunities, you've got you have opportunities. A lot of wealth is created out of opportunities from bad times. So, you know, you've done exactly the right thing. You've made sure people address their debt management, their budgeting. You know, you get me at the table and I make sure they understand they need to be prepared. They need to have some food and water. You know, we have alternatives. Your big push for people's retirement is income over assets. It's amazing. I mean, it's amazing how I feel like we're changing people's lives. You have kept a bunch of clients from losing money this year. So I would I would think you're dead on right on track. And then we will shift and rearrange as needed.

Anthony Carrao:
You know, and I want to I want to talk about that again, the strategies we've we've looked at for having cash, but we've got to go on break for the time being. Check us out at another Money Show dot com or email us directly at team at another Money Show dot com. Thanks.

Producer:
This is another money show. Except this one's different. This one's actually fun. The lights go down in the California town.

People are in for the evening.

Producer:
You're listening to another Money Show.

Anthony Carrao:
All right, we're back. And apparently I'm the rant one today. You are listening to another Money Show on 960. The Patriots, myself, Anthony Curry, O.J. are Rochford here with me. And we're talking about the stock market today because the Inflation Reduction Act did nothing to reduce inflation and is only bringing down the market. But that's only for probably only today might skyrocket tomorrow. I mean, the last few days leading up to this, the market's been up as if inflation didn't exist because nothing makes sense. So talking about personal portfolios and having stocks and, you know, our thought is in a bubble situation, you can't really look to sector rotation and even a good stock right now is going to drop. It may not drop as much, but in a bubble, everything drops together. So you have to be prepared for what you think the world is going to be like outside of that bubble. So when we're talking about the clients that I have where I do manage the money, we're we're saying being cash heavy, right? Because cash is safer than the market. You lose out to inflation. But do you want to lose out to inflation and market loss or just inflation? So it's the safer of the options. And the issue is a lot of advisors, when there are dips, will have this brilliant idea that now is a great time to buy because it's a dip, it's cheaper.

Anthony Carrao:
What they never tell you is where that money comes from. So me as an advisor, I have I've just lost you 50 grand. You're down 20%. And now is a great time to be getting in with 20% down. Where is that money come from? I just lost you 20%. So I'm going to come to you and say, Hey, I know I'm down, but give me more money because I know what I'm doing now. Why are they not selling? You've got a 14 year run up in the market. Why are you not preparing for rainy days? Where does this money come from? It should be you should have it prepared for, you know, buy low, sell high. If you can't sector rotate where you're going to buy in a low sector and wait for it to be high and then alternate. If a bubble is going to happen and everything's going to drop together, then the only alternative is to wait it out in cash and it sucks. Losing money to inflation sucks, but losing money to the market sucks more when it's 40, 50, 60%. And that's what.

J.R. Rotchford:
Our rules.

Anthony Carrao:
Look like.

J.R. Rotchford:
What what is normal in our industry? We tell people you can't time the market. You know, if you miss the best ten days, here's where you are versus if you didn't, you know, we're still doing buy and hold like we were doing when I came in the job. We just don't say that. You know, we tell people, you know, hang on, it's you're still age based, appropriate, you know, do your 6040 mix, which is getting crushed this year. You know, you hit on something I say all the time to people. The advisors are always taught to keep you calm. Oh, don't worry, it's only a paper loss. Well, by that sentiment, when is it a paper gain? Why didn't we spend 14 years telling people, maybe you should sell some of this stuff, maybe you should take some profits? It's only a paper gain. We don't do that. We only tell you it's a paper lock become. We tell people buy the dips. As an industry, we don't. When are they telling me to to sell the peaks? You know, the last four days in the market were really good. Why didn't people sell some stuff now? Today it's really bad. Now, today buy some stuff. It's like, you know, you can't time the market. Of course you can time the market. That's garbage advice here. Here's how to time the market. You give me a dollar and then in six months from now, when you want your dollar back, if I've lost half of it, it's worth worth 50%. Don't take it out. But if you gave me a dollar now it's worth a dollar 50. Take out the $0.50. You just time the market like a genius, you know? You know what's important? Diversification. You know what's important? I mean, all these things that are important on traditional financial planning are still important. We just we don't practice them. And for us, I mean, we add to traditional financial planning, we add blacks want events like the railroad strike may lead to. We add the ten pillars. We make sure that we see the big picture. I don't think that's very common in financial services.

Anthony Carrao:
No, not at all. Because the job is to make sales.

J.R. Rotchford:
Yes.

Anthony Carrao:
That's what's on Wall Street. It's like, well, your job is to move the money from the client's pockets into your pockets. But it's like, what didn't Leonardo DiCaprio say? Like, yeah, but if we can make them money, too, you know, is a win win win. He's like, no, it's a fugazi. It's a fugazi. It's just. Nothing makes sense. Absolutely nothing makes sense. So the question comes up, well, what do you do? Right. And typical financial plan is times like these that are very stressful and volatile and you want safety. You look to bonds. That's old, traditional financial planning. Well, bonds, the value of a bond works inversely to interest rates. That means if interest rates go up, bond value goes down. Now, we just had 14 years or so of practically zero interest rates. Right. Which means what does the bond what direction does a bond value have down? Right. If interest rates are going up, bond values are going down. So I guess we ran out of time again. So but we're going to talk more about bonds, bond alternatives when we get back again. You're listening to another Money Show. Reach out to us at team at another Money Show. Subscribe to us where you listen to podcast and find us at another money show dot com. Thank you.

Producer:
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Anthony Carrao:
All right, we're back. And we're talking about Bonds. So in theory, in times of turmoil like this, bonds are safer option. But if bond value is determined on what interest rates are doing, as interest rates go up, bond values go down. So maybe that isn't the safest bet. And what rates are going to do with inflation? I mean, if the Fed is cares about fighting inflation, they'll raise rates and maybe at more than a quarter point at the time. But we get hit with inflation. You know, early on in the Fed put it off for months, they said, oh, we're going to raise rates in five months. It's kind of like the FDIC saying that if you don't meet the minimum threshold or if the FDIC doesn't meet the minimum threshold for what they want to keep in their reserves, they can fix it in eight years, which seems like a a prominent strategy we'll give ourselves to two presidents before we fix our damage. Slow and steady wins the race. Right. So speaking of slow and steady and not actually fixing problems, we going to segway a little bit into bond alternatives and some solutions and kind of people that. You know, we talk about diversification and that's smart. But I feel like you have to set a foundation first before you can even diversify. So I want to chat on that a little bit, but we want to not kind of get off this inflation topic and how inflation more than just the cost of your bills. I mean, the cost of food is going to go up and that's not good. But if you can't get food, that's much worse. So. What do you got for us?

J.R. Rotchford:
Well, I mean, obviously, the gorilla in the room is inflation, you know, and the problem with inflation. Is it going to get worse? Is it going to stay the same? Is it going to get better? I mean, if we have a railroad strike, is that going to just instantly skyrocket prices? And then we're looking at hyperinflation? You know, the rest of the world is experiencing that. You know, do a little digging. Look at Europe, look at Germany. Germany right now, the big rush is people ran out to get like plug in space heaters. And they're saying that all these plug in space heaters are going to further complicate the problem of their energy. You know, in this country, we don't think we could ever have problems. We really do. You know, I used to bring it up a lot. I haven't in a while. But normalcy, bias, I mean, we don't think things could go wrong. You know, I got a postcard this week speaking of inflation from Sam's Club and it said that they're raising the memberships. So to make you feel better about them raising the membership, they're going to give you a little it says here to help with this change and to offset the increase, you'll get a $10 Sam's cash with your next plus membership renewal. That's great. So ten bucks, you're going to raise my thing, like ten bucks, then you're going to give me ten bucks, but then it's going to be higher by ten bucks every year here on out. So I get one $10.

J.R. Rotchford:
So you offset the cost the first year and then forever it's up by ten bucks. Amazon Prime, it was under 100 bucks years ago. You know, it was 99. Then it went to to 129. Whatever it is now, there is inflation. It's is it going to be problematic in this state? In Arizona, we have and I heard this last Saturday, I listened to a show when I can called Rosie on the House, a little plug for Rosie and his. He put out some numbers. He said that 64,000 people a year are moving to Arizona just from California. You know, it gets worse when you add Washington, Oregon, Texas. There's a lot of people I don't know why moving to Arizona from Texas, but that 64,000, he went on and he said that that's an average of 175 people a day just from California. And I thought about that. So that's good, right? I mean, more people paying taxes that's going to help the state. I'm not so sure. You know, first of all, have you noticed the traffic lately? I mean, you don't have to try to get to Mesa or Tempe from Sun City anymore, try to get into Glendale, try getting to Westgate. You know, the traffic is getting bad. You know, we talk about a drought. We need to we need to spend one of our segments maybe next week. You and I should talk about this. Let's talk about the upcoming drought. You know, a funny story for you real quick, how I got to Arizona.

J.R. Rotchford:
I was stationed at Luke Air Force Base from 1987 and 91 was my active duty time. And we had a class when we first got here on Desert Living. Now, mind you, this is 1987 and the three things I took away from that class, well, the first one was saguaros. The cactus are protected. They knew a lot of people getting here weren't from Arizona. They were like, don't drive out to the desert in your pickup truck, don't hit a saguaro, don't take your firearm and shoot at a saguaro. Don't try to take one home. The second part was on where not to go. You're telling a bunch of young air men and air women where not to go? They said to stay away from like Van Buren. They said to stay away from a place called the Alaskan Bush Company. If you're not familiar with the ABC, it is a adult club. So you're telling these young people, don't shoot it, so don't go to the Alaskan Bush Company. What do you think? The first thing we did was that following weekend we're this was before Google Maps. But believe me, we found a way to make our way to the Alaskan Bush Company. I mean, I didn't because I'm not that kind of a guy, but I know other friends did. So in the third part of the class, which really stays with me now, was we are in a desert. They were telling us, you need to turn the water off.

J.R. Rotchford:
When you're brushing your teeth, when you're shaving, you need to take shorter showers. Look at things now. Look at the growth. Arizona, I mean, you know, Bell Road ended it about 67th Avenue and there was like a living fountain place. I mean, it's amazing. So this inflation, it seems to me like it's not going to get better. It's going to get way worse. And what are we going to do about it? You know, here's here's a quick real life example. Last week last week, I went and got gas at the Q T on the loop 101 in Thunderbird and it was $3.69 and I was a woo. Gas is so cheap now. It was five bucks a year, you know, it was 369. Then over the weekend I went to the very same cute and filled up again. It was $3.99. This was on Saturday. Then yesterday I didn't get gas, but I went by there. The sign says $4.29. So if if today is such a horrible day with the inflation, you know, part of why the inflation has come down lately is because gas prices have come down. Janet Yellen was out saying it's going to be a bad winter. She already braced us and we know how she's insightful. Janet Yellen said they were going to have a hard time with gas prices this winter. So listen up, kids. I mean, I've been telling people, first of all, you know, $3.69 isn't exactly luxurious, but that was temporary. That was a temporary reduction.

Anthony Carrao:
Bill, cheaper than England or Germany.

J.R. Rotchford:
Well, yes, that is true for now. Let's see if. We all kind of evened out eventually. But yeah, you're right for now.

Anthony Carrao:
So what? I mean, are we going to talk about the U.K. at all right now?

J.R. Rotchford:
Well, I mean, go for it. Help me out here. I love today, because today, you know, when you said to me last week, you're.

Anthony Carrao:
On to read all the art.

J.R. Rotchford:
I mean, this today. I'm I want you to run with this.

Anthony Carrao:
So the basics, if you're unaware of what's going on, is their energy costs are skyrocketing across the board. So that's you know, it started in Germany. Now it's heading over to the UK, but they're thinking they're going to shut down a lot of small businesses because they can't afford to stay open. You know, they're talking about capping for residential their energy costs at 20 £400 I think for the year. So it's really hard to kind of put into words the crisis that's happening elsewhere. And we're just not seeing it yet here. But we're on the same trajectory again. We're not fixing any any problems. What else was going on? Well, that part that I thought that was going to be your segment, I thought that's what we want to talk about.

J.R. Rotchford:
Well, no, because I think I think we have to end today's show with some solutions. I like last week that we actually told people how much water to have. I think we should end with solutions. I will finish up when I say, you know, like when you look at Europe and you look at the rising costs, it's going to get worse, too. I mean, everybody's saying that it's not quite over yet. If you look at like I've had some pretty bad energy bills, you know, we do have a pool. So I know that's part of it. You know, we I do like it comfortable. So we run the air conditioner. But when you have like a $500 electric bill, that's like a car payment. Well, it used to be, but I mean, it's substantial. And if we experience what the rest of the world experiences and it goes four times, that's a 2000 electric bill that will become very problematic. Yeah, that's going to.

Anthony Carrao:
Be a problem. That's what they're dealing with in England. That's the cap isn't in place yet, but right now they're seeing energy costs almost as much as their cost of living in their rental and their mortgage.

J.R. Rotchford:
Could that happen here? The magic question without a crystal ball, do we think it could happen here? And unfortunately, we're not ruling it out. You know, I've heard it on other radio shows. There's been a couple now that are using a phrase that I like. It's it's the era of abundance is over. But that let that sink in for a second. The era of abundance is over. They're referring to this globally. They're saying that we've always been able to go to the store and get what we want instantly. You know, you're hungry for something, you just go get it. You know, you've got a store close by, you know, younger people. Kiana in our office, it's amazing watching younger people. She had a Starbucks drink delivered to the office. One, one Starbucks drink. I don't know if it was DoorDash or Ubereats, you know, and that place is expensive to begin with. And then you tip the person and it's like, holy crap, delivery fee.

Anthony Carrao:
So now you're paying double.

J.R. Rotchford:
Yep. But it's instant gratification and we've always had abundance. We are, unfortunately, you know, I'm not sure if that can keep continuing when I sit down with somebody, how do how do I look into the future? Well, the day I sit with you, I look back five years, ten years, 20 years. Then I have to look forward five years, ten years, 20 years. Do I think things are going to be the same, better or worse? I always tell people, I'm not an optimist, I'm not a pessimist. I'm a realist. I take all the information I can, I glean from it what I can, and then I do the best I can for people. And I will tell you what, I am very pessimistic. Go ahead, get me happy.

Anthony Carrao:
I was going to say we're already we're running out of time again. We were like, oh, we're going to talk about solutions and bond replacements and things like that. So you talk about diversification strategy. We're probably if you want more information on what I'm about to say for these solutions, reach out to us at team at another money show dot com. We can explain for your particular solution but real quickly set about foundation, right? You talk about diversification, but a lot of times they're referring to stocks. So it's diversification and stocks have some energy, have some growth, have some stable dividend paying. But that still you're still investing in stocks. You know, for a retirement. What I'm seeing is the amount of assets you have in retirement means absolutely nothing. It doesn't matter if you're a millionaire or not. There's a lot of miserable people in retirement that have a ton of money. There's a lot of happy people in retirement that don't have a ton of money. And what they have is they have excess income. Your income means significantly more than your assets in retirement if your income doesn't mean your spending habits month to month. And all you see is your assets dwindling coming down, even if it's not, even if you have millions of dollars and you'll never outlive your money if you just know that you're taking out of your savings every single month to get by.

Anthony Carrao:
It's a it's a mental strain. I see it time and time again. So what we focus on is for your retirement money before you worry about diversification, all the other things that you have to worry about, you have to focus on your income in retirement. Now, there's a few ways to do that, right. We talked about bonds. You live off the interest, the stocks, the 4% rule. You can live off 4% of your stocks. Even the guy that invented the rule has come back and said, you know, we can't be doing that anymore. It's not a true rule. But also that 4% looks a lot different if this bubble hits like we're talking and all of a sudden your 4% is of 50% of your money. How do you plan ahead for that? So what we focus on is self funding pensions. If you if you listen to this and you have a pension, if you're younger and you have grandparents with pensions, people with pensions in that income stream seem to be the happiest in retirement. We got tricked in the eighties into self funding our 401 k and paying for our own retirement and saying that assets are the key and we have to have $1,000,000 and that's how we're going to be happy. Well, that's not how that works. We're not everybody knows is you can self fund your own pension if you have old for one case you have extra money in the bank.

Anthony Carrao:
Just investments that you're tired of losing at in the stock market. You can invest in a self funded pension and make it a pension for life. So once you have that foundation, if your income is more than your or more than your bills each month, you're building up your savings. If your income isn't higher than your bills each month, you're depleting your savings. Right. And Singh seems like a very simple concept, but that's that's got to be our focus. It really needs to be. And we have safer ways to do that. Again, we're running out of time. I guess this wasn't the most climactic ending, but that's it for today's show. If you like what you heard, if you have questions about any of the topics today or want to sit down with us to review your personal situation, you can reach us at team at another money show. Find us on the Web at another Money Show dot com or subscribe to another Money Show. Wherever you listen to podcast, there are no minimums, no cost for appointments, and nothing to lose. By getting a second opinion on your financial situation. We will see you again next Saturday at noon right here on 960. The Patriot.

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 another Money Show com investment advisory services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor, BCM and Rochford 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.

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