8.30.22: Audio automatically transcribed by Sonix

8.30.22: 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 Carrao and J.R. Rotchford.

Anthony Carrao:
Here we are, your host, Anthony Corrado and J.R. Rotchford taking a break from our day to day as financial advisors with Rotchford and Associates, a fully independent fourth generation family office right here in the greater Phoenix area to bring you information you may not be hearing on those other financial radio shows. We are aware the last thing you need is another money show, but we appreciate you being here. So today we've got a few things to talk about. We've got some listeners reaching out and we're going to address some an email and a call that we got. We're going to go over that executive order again about the digital currency. Talk a little bit about Germany, maybe some sector rotation. Talk about student loans and what are we leading off with?

J.R. Rotchford:
All right. Well, let me jump in here, first of all. Right. Before we started, Anthony said a bad word. So luckily it didn't get on here. And I just I kind of figured today, instead of following the outline, which I'm really good at, not following the outline, I thought maybe we would spend the entire hour reviewing the movie Wolf of Wall Street. You know that movie? Apparently, it set a record. It had the F-word more times than any other movie in history. So, Sam, I'd get ready to bleep this out because I think this episode should say the F word more than any other race in history. But that's just.

Anthony Carrao:
If we just do a documentary about The Office, I feel like we could beat that rating.

J.R. Rotchford:
So let's start off.

Anthony Carrao:
With you being a tattletale to start the show.

J.R. Rotchford:
Well, I mean, you offended me, so I've changed my ways and cleaned up my act. So if you joined us last week, first of all, thank you so much again. That's Anthony Carrillo, the one with the potty mouth. I'm J.R. Rotchford, and we are always with the one and only Sam Davis, so we have to give him the credit for this. Sam is the one that keeps us sane, keeps us together, and he's the one that keeps this whole thing going. So thank you so much, Sam. We appreciate you. If you did tune in last week, you probably noticed we are new. We are new at the noon timeslot we used to be on later in the afternoon. And it's a little bit different. You know, when we say another money show, it's we say that kind of tongue in cheek because we're probably anything but another money show. We listen to the other shows. We listen to what's going on. You know, we listen to how a lot of these shows are still they're sticking with traditional financial planning, you know, based on your date of birth, your income, your assets, your taxes. We understand as financial advisors that that is key. That is the base, that is the foundation of our livelihood. But what we have to add, we talked about the ten pillars last week, which is ten major things that most people are watching. We also add black swan events. I mean, this week I'm reading that Iran is is enriching nuclear capabilities. I mean, there's all these things. It can come at us. You know, Libya is on the on the right, on the cusp of revolution, Iraq. We're removing people from the embassy. It's just geopolitically, the world is really uncertain.

J.R. Rotchford:
I would say the world is uncertain here in this country, too. So we are trying to sound alarms. You know, we will the day come back that we offer you just traditional financial planning, how to do your Roth conversion, how to do all these mainstream things. Of course. I mean, that's our hope. But in the meantime, you know, our our whole goal is to make sure that you're prepared. We don't want you scared. We always say we want you prepared, not scared. And we're going to run with that as long as we have to. So and this is Labor Day weekend. You know, we record this on a Tuesday, so sometimes we forget that a lot of things can happen between now and Saturday when you're hearing this. But thank you so much. I mean, especially on a holiday weekend for joining us. We just we appreciate you're here basically today. I mean, you know, talking about what's on the news, we wanted to kind of kick this off, talking about student loans. You know, it seems like since they since it was announced that we're going to relieve people of $10,000 in student loans, 20th, it's Pell Grant that's really growing legs. It's it's adding to division, which is part of why we want to kind of give you our take on it. You know, we we do welcome your calls. We welcome your questions if you have a student loan, you know, obviously, the first day that that came out, the website crashed. If people went on the website to see what forms they need, they had questions. You know, it's coming out that, yes, your 10,000 will be forgiven, but you probably still owe taxes.

Anthony Carrao:
But do you know a single person that's affected? I've got a lot of friends with student loans and I've yet to hear anyone that will actually benefit from this.

J.R. Rotchford:
So basically they must be private student loans and not the federal.

Anthony Carrao:
Yeah, I guess so.

J.R. Rotchford:
And the answer to your question, oddly enough, I hadn't thought about that, but. No, no, I mean, I'm watching the big picture. I'm watching what questions are being asked. I'm listening to talk radio. You know, this is going legs. So but no, I don't know. One single. Oh, yes, I do. I do. Last Thursday, I met a young woman who has a federal student loan, and, yeah, she's super excited about it. I had to bite my tongue because a couple and I want to say things like and how do you say to a friend, I'm happy for you? I'm really not happy in general. And a lot of that is, is the background of me and student loans. You know, I went through the military, I got the GI Bill. I went to, I went to you know, I kind of earned my college in advance. And when I when I got out and went to school, it never crossed my mind that other people are getting saddled with this debt. And by the way, I mean, I graduated from from JCC in 1993. That's Glendale Community College, then I graduated from ASU in 1995. School was much less expensive.

J.R. Rotchford:
So part of part of my issue with this young woman, it's like I mean, I went through school, I didn't have a student loan. So I don't know exactly what that burden feels like to you personally. But I can tell you in general, I mean, people that that work their butt off. They work two jobs. They go to school and they they've got this loan. It's with mixed emotion. I say I'm happy for them individually. I'm really sad for the people that already paid theirs off. You know, Anthony, your mom was one. You know, when I first came into your guys's life, your mom had quite a bit of student loan debt, and we worked together. I watched this thing and she was making her payments. It wasn't moving. She had an eight and a quarter percent interest rate. I'll never forget that because I was like, Holy cow, you know, this is the loan that's supposed to better your situation. And, you know, granted, that was 20 years ago. You know, I mean, now the average, from what I'm hearing, is about seven and a half percent. These loans are 5 to 10.

Anthony Carrao:
They're predatory loans.

J.R. Rotchford:
Absolutely they are.

Anthony Carrao:
Let's give somebody who has no job, no income, no real direction with their life, and let's give them $100,000 in debt to start things off.

J.R. Rotchford:
Yep. And we're all not getting degrees that are really beneficial to pay it off. I mean, you have a friend that's a physician's assistant. You know, from what we see, she'll make pretty decent money, but she's got a big loan and it's going to be tough to pay off. What if she got her degree in mixed gender study, anthropology, poetry? I mean, I don't mean to be little.

Anthony Carrao:
Hilda, I want to backtrack a little bit because you hit the nail on the head and you said college was much cheaper when you went. Same with when my mom went compared to when I went. And that's I think that's kind of the huge argument. You know, people tend to forget what prices of things were back when you were going to school, the cost of a house, what you were actually being paid. And I know it's hard to comprehend because you're talking about a, you know, buying a 70 Chevelle for three grand. You know, back in 1970, it was like, Oh, I wish I could buy a car for three grand. You don't understand, though, the cost of that three grand was closer to about 30 grand now, but that's buying something at the top of the line at 30 grand. Now you can get a bottom level Corolla for 30 grand. The cost of a house. Now you know what? 40, 50,000, maybe. Back then, granted, that was still worth significantly more than it is today. But it's that that price difference in there. But even so, when I went to school, right, so the whole student loan thing, I lived at home, I worked multiple jobs throughout, I tested really well. I got that Ames tuition waiver, but it didn't increase with my cost of tuition each year. And by the time I got to senior year, I actually did have to take out a student loan. It was a tiny loan, but I took it out, but I think my interest rate was about 7% and I could not make headway on it at all. And that's even after graduating, making decent money. You just can't. So.

J.R. Rotchford:
You were super smart, actually. You took out two loans. I remember it because your mother and I cosigned for you, which as a financial adviser at the time, I was kind of. Yeah. You know, two, two loans for about $5,000. And you did pay them back. You paid them back kind of quickly for somebody new in the workforce, you know. But when you say 7%, think about something. Let's let's go let's go back and forth. Let's time travel here right now. The last couple of years, these homes that know a starter home 3 to 400000. So yes, you are correct everything's gone up. Student debt, the student loans, the cost of education has gone up much faster than other things. But you were able to get a 30 year fixed mortgage for about 3 to 3 and a half percent. A year ago, you were able to get a 15 year fixed for two and a half. So, I mean, what the hell? Excuse my language. What the heck? It's like, why is student loan three times the price of a mortgage loan? I mean, it is predatory. It is they know they can get away with it. They know that people have always, you know, the brass ring. You've got to go to college to get the good job. I don't know that that's necessarily true.

Anthony Carrao:
So mean trade schools better than most college degrees at this point. And you know, and when we've sat down with clients, we've talked about us about 529 for their kids. And I'm I'm not really for them I think. I get why they exist. But college is such a mess right now, and unless you're going to school for a degree that's going to pay, there's no reason to go to school because it's just a substantial amount of debt. So hold on. The whole thing is, should this debt be forgiven? My whole thing is we talk about this, all this show, just the grotesque spending habits of our country. And if we're just going to throw money away like we do, why aren't we doing it to actually help people? So if we're going to just throw this money away like the government does, this is actually beneficial. This is one thing. So and I get what you're saying, like, oh, I paid for my student loans. Mom paid for her students. The whole thing is you have to stop the cycle somewhere. So is debt forgiveness. I get that. There's a lot of controversy around that. I don't I'm not against it. Personally, I don't think that fixes the problem, though. If you're problem is the cost, one, the predatory nature of the size of these loans and these obscene interest rates. If you really care about these people, why isn't it 0% interest?

J.R. Rotchford:
You just hit my happy compromise with the pro forgiveness. People don't forgive the loan. You took out the loan. You pay the loan. I know that's a Facebook meme, but you did take it out. Your parents probably helped you. You're you're an adult. You're educated enough to make some decisions.

Anthony Carrao:
Not at 18, no.

J.R. Rotchford:
But with your parents help with people working together, you. And part of the whole problem with this and by the way, yes, I want you to go to 0% financing. This is to help our future. You say throw away money. I mean, we're giving billions of dollars to another country, which I have mixed emotions on whether or not that should be happening. You know, we need to get into this further. But it's believe it or not, it's almost our first break time. Let's do that. Let's go into break and then let's keep going with this because I want to air this out. We'll still have plenty of time today to talk about segment rotation or whatever other financials.

Anthony Carrao:
Probably not talking about anything else, but we'll see. We'll see how this goes.

J.R. Rotchford:
Well, thank you for being.

Anthony Carrao:
Here in time. You can find us at another money show or listen to us old episodes anywhere you listen to podcasts. We'll be right back.

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. Another weekend. Another Money Show visit. Another Money Show.

J.R. Rotchford:
Just what you needed on your weekend. Another Money show. So again, maybe every weekend. We're so happy you're here. During the break, we talked a little further. We want to bring salmon in a second. But first, I have to make a point that really, really is stuck in me. So, you know, this whole Facebook meme, you took the loan out, you knew what you were doing, you took it out, you pay for it. You know, if you've ever watched late night TV or actually during the day, you know, when a lot of people are home, that shouldn't be. They should be at work. But anyway, when you when you watch late night TV, you see a bunch of commercials about credit card debt forgiveness reduction, whatever they're like, do you have more than $10,000 in credit card debt? Are you swimming in debt? Call us. We'll help you. You bought the couch. You bought whatever you bought on the credit card. You pay for it. Don't don't make your purchasing my problem. I mean that. And the student loan thing, you purchase something so much more important than a couch you purchased, your future, your livelihood, your income earning potential. So that's even more important. It should have value. We're your point, Anthony. I think we're seeing it may not have as much value as where it's thought. I mean, you know, I have a younger son. He could come into our company without a college degree. When I first came in, I first came in the financial services industry in the late nineties through MetLife. I was on the financial services side of Metropolitan Life Insurance Company, and I needed a four year degree. That was their hiring practice. Didn't matter what it was in. I mean, my degree is in communication studies. It's not exactly business or economics.

Anthony Carrao:
And I would advise anybody else to not get a degree in communications because it probably doesn't pay what you're going to get in student loans.

J.R. Rotchford:
It's super valuable. My communications is great. If somebody calls me, I can answer the phone with confidence. There's a myriad of things that I can do because I can communicate clearly, articulately and by the way, you know, back to your potty mouth. Before we started recording, did I read an article that said that that colorful language is a sign of intelligence. So I'm not trying to puff you up, but you are probably.

Anthony Carrao:
Smart then.

J.R. Rotchford:
You are pretty smart. So during the break, Sam brought up an issue. Sam joined us for a second. What did what did you ask during the break? Oh, I just proposed an interesting thought experiment that instead of the ten or 20,000 forgiveness that seems to be happening over the next few months, what if the Department of Education or the or the IRS or whatever government entity just issued a ten.

Anthony Carrao:
Or 20,000.

J.R. Rotchford:
Check, whatever they were eligible for in forgiveness, but just gave it to them as a check. That way, you know, the argument could.

Anthony Carrao:
Still be made like, hey, this is stimulating the.

J.R. Rotchford:
Economy, perhaps more so.

Anthony Carrao:
And I think it would stimulate the economy more because I don't think anybody would pay off their loan. Not nobody. I think it would be a very small percentage. I think if you just hand people these checks, they would spend it on whatever else they want.

J.R. Rotchford:
There's people right now we have a huge problem in Phoenix. From what I'm told, from what I hear, there's a bunch of people that were given assistance for their rent. There's there's a big growing eviction crisis. And they're basically saying these people got a bunch of assistance. They don't think they put it away for the rent. They don't think they use it for the rent. They think they use it for other purposes. And now all sudden they're getting kicked out of their apartments, mostly apartments, less homes. So I agree with Anthony on that one, Sam. I think it's a wonderful idea. You know, I just don't think it would go the way it's intended. I think I think 90 plus percent of the people would not.

Anthony Carrao:
Here's I want to make this point, too, because I love making this point like we're berating individuals for not being responsible, who's holding our government spending to be any sort of responsible? Like you get these large corporations doing the exact same things that individuals do, but if they do it and they screw up, well, we'll bail them out. We'll fix the problem. You know, they create jobs and they do this. So we have to bend over backwards for them. But if an individual does the exact same thing, we just berate them as, you're not good with your money, you're not responsible, you're a bad person. I mean, the airlines the airlines had one bad month in March of 2020. And don't get me wrong, that's kind of that's a big hit if you are going to just stop being able to work and to run your company. Right. But a lot of individuals had to deal with that, too. But the point is, how much money did they spend on stock repurchasing on that decade run up in the market? Leading up to 2020. So from 2008 to 2020, these airlines, it's reported that they spent like 98, 99% of their profits in jacking up their stock prices. Why aren't they saving for a rainy day?

J.R. Rotchford:
It's funny. I thought the same thing you and I talked about that it's like, you know, these big greedy corporations, you know, the frothy profits. And then as soon as things are sketchy, they got their hand out. They want too big to fail. They want troubled asset relief. What kind of money can I get? You know? Don't forget the movie theaters. They got shut down, you know, because of COVID unknown. I get it. I see why they were shut down out of precaution. The first thing they did was put out their hand. These are people that, you know, a month before COVID was a known thing. So say February of 2020, these people were charging $9.25 for a bucket of popcorn. You know, it was very $0.43 worth of popcorn. It's like $10 for a movie ticket. It's like you guys were really making hay, you know, paying these big stars millions of dollars from everybody's throwing money everywhere. And then as soon as things are are a little bit sketchy, you want the government to give you money. Where does the government get their money? They either print money, which isn't working so well this past decade, or they take it from our tax dollars. By the way, I heard a rumor that the IRS is going to expand over the next few years. So they're going to take more of our tax money.

Anthony Carrao:
But that's great inflation, though. It's fine. That's where they're arming them. They're going to shoot that inflation down.

J.R. Rotchford:
Inflation Reduction Act Pupu Yeah. Is going to be an interesting next decade. I am so glad I'm in poor health and really old Sam. You guys are screwed. I'll be all right. But you guys are in trouble. But.

Anthony Carrao:
All right, so what was kind of lost? I was just. I got angry. But these bailouts. It's all right. You've mismanaged all of your money. But now tax dollars, taxpayers are going to bail you out like all these people that they're hiring at minimum wage. So they're hiring all of these people to create all these massive profits to benefit their shareholders. When people can't survive at that minimum wage level, like we're not building up the middle class, the lower class, like it's just filling their own pockets. And when they make mistakes, those people that they were refusing to pay are now bailing them out with their taxes.

J.R. Rotchford:
Sounds like you feel the system is not fair or rigged.

Anthony Carrao:
100%.

J.R. Rotchford:
Which which? Our whole country. You've been in my life for 20 years. I have said to you for all 20 years, there is nothing left in this country or the world but the haves versus the have nots. So all this stuff in the media about gay versus straight, black versus white, gun versus no abortion versus no VAX versus no. Yes. It's passionate. Yes, it's polarizing. Polarizing. The big gorilla in the room is money and it's the haves versus the have nots. Talk about financial. So we in the next year, two years, five years, ten years, it's starting to get real sketchy. So we're going to kind of see what I was saying. For 20 years I've been saying to people lately, you know, I've been worried about the world for about 15 of my 25 years in this industry. I've been early, but I have not been wrong. And now we're starting to get to that intersection. We have to take a break. That flew by, too. But let's keep this going after the break. So don't forget to reach out to us at team at a another money show or give us a call. 6235230444. We'd love to sit down with you and better your situation personally. So again, thank you so much for being with us.

Producer:
You're listening to Another Money Show. To learn more and contact J.R. and Anthony visit another Money Show dot com. And. At Rotchford 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 6235230444. That's 6235230444. 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.

Anthony Carrao:
And we're back, another money show. And maybe this segment will actually finish up talking about student loans. So this was actually in our original outline, the only segment we were going to talk about, student loans, the short one, and look where that got us. So maybe we can finish up here.

J.R. Rotchford:
Well, one good thing about us, I mean, we work really hard every week, draft the outline. We have a structured plan due to go by. Sam provides us with a really professional outline. Have we followed one outline of mine or Sam's yet?

Anthony Carrao:
Yeah. Absolutely not.

J.R. Rotchford:
We're going into like month five, aren't we? Nearing it on five months? We never. Yeah. I'm pretty sure we started April. April. May, June. July, August. Yeah, we're going into month five. I'm not good with numbers or math. I had to take off a shoe just to get a sunset.

Anthony Carrao:
Well, that's like. Whereas letters when you try to alphabet is something like, I got to go through the entire alphabet. Like, I.

J.R. Rotchford:
I have to say, I'm even worse. I have to sing it. I can't even go through the alphabet without the song.

Anthony Carrao:
So probably you sing it out loud. Like, that's the embarrassing I do.

J.R. Rotchford:
And then happy birthday. I sing internally. I don't know, I don't I'm not sure what's going on with me. But so back to the student loan. Let's finish it up. One of our ten pillars is social media. And people are like, well, how do you tie social media to finances? Well, let me give you a quick example. You know, last, what, April of 2020, when there is a toilet paper shortage, I came in the office one morning and I said to you, I said, Do you need any hand sanitizer or toilet paper? I said that with all this weirdness going on, those things are going to they're going to vanish. And then a day or two later when it hit Facebook is when all of a sudden I was like, boom, it grew. Everybody is on Facebook. You know, I know it's an older crowd. I know you and Sam are more TikTok and, you know, younger stuff. What Snapchat? What are your kids doing? Are you low key? Go to.

Anthony Carrao:
Sam. I don't have any of that, actually. You know, I take I back I got Instagram for my my car thing.

J.R. Rotchford:
That's Instagram.

Anthony Carrao:
Look at the other.

J.R. Rotchford:
One, Instagram tik tok and Snapchat is what Snapchat snaps check I you know, I mean, I'm old so none of this makes sense.

Anthony Carrao:
It seems like a tik talker.

J.R. Rotchford:
I had pretty much all of it. And then I pulled away from social media pretty hard around.

Anthony Carrao:
2016, 2017.

J.R. Rotchford:
And now I have no social media accounts. I do.

Anthony Carrao:
Have a tik.

J.R. Rotchford:
Tok which I do not post to. I just watch the feed like the digital cigarette that it.

Anthony Carrao:
Is and it's.

J.R. Rotchford:
Super addictive and it's amazing that it can kind of figure out exactly the type of content that you like to watch and show you. So it's, it's, I would recommend it, but at the same time, I wouldn't recommend it because you will lose time from your life.

Anthony Carrao:
If you download that app the algorithm, then they'll get you. Oh, and speaking of social media, we have a YouTube channel where they post clips from the show, which I forgot about because we don't run, somebody else posts them. So find another money show on YouTube when you're getting into that social media pitfall.

J.R. Rotchford:
I checked it out last weekend. There is officially one subscriber and then I realized, Oh sweet. So we are following our own YouTube channel. Sam, it's kind of you need to follow us on YouTube. I mean, we are so good. We are so great here.

Anthony Carrao:
So what were we talking about?

J.R. Rotchford:
Well, social media, when things get to Facebook, they grow legs. And I know it's a little bit older of a crowd, but when you look at things financially, you know, I mean, how can we tie in student loan debt to Facebook? The to watch the discourse, to watch the fighting, to watch the incivility on Facebook? It's amazing. It's it's the public square, you know, it's the tavern of old days. This is where people are communicating. And, you know, somebody actually somebody went after me on Facebook last Friday. I think it was shameless. I mean, they actually took a screenshot of my PGP loans. Yes. In 2020 I took out two PGP loans. Do you want to know why am I not productive? I was scared like everybody else. Am I nonessential? You know, don't forget, Anthony, we shut the office. We figured being in Sun City, it wasn't wise to have people come in. We started freaking out. We didn't understand Zoom yet. We were like, we literally can only last so long. We still have to pay our rent. I mean, I noticed the building. We still wanted their rent. We had to pay apps. So yes, I took out two loans and over the weekend on Facebook, somebody actually screenshotted that I had done that and they they fought with me a little bit. And then as soon as it started going, they blocked me in, unfriended me, whatever. So chicken, you know what I'm at. But anyway, it's funny because the PGP Loan, you got to be kidding me. Are we nearing a break again? I'll make this really quick. The PGP Loan.

Anthony Carrao:
Is it? I think it would be a good discussion. That's a. Let's just make the transition. We'll start the other one with it. So we lied. We're not going to finish. We're not going to finish talking about student loans in segment three. We're going the whole show. It's all student loans all the time. But if you do want to hear us talk about different topics, you can subscribe to another money show. Wherever you listen to podcasts, you can find us at another Money Show and you can reach out to us at team at another Money Show dot com. And we'll be right back. Everybody's doing a brand dance now.

Producer:
Maybe.

Anthony Carrao:
You know, I know you're going to like it if you give it a chance. Now.

You. It's easy. Abc.

Producer:
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. Thank you. On this Labor Day weekend for being with us. Labor Day weekend. You know, do you remember people used to put out how long you have to work until you pay your tax bill? You know, I'm talking about it was like, I don't know, may or something like all of the money you make in the first so many months is going towards your tax bill and then you start earning money for yourself. This is probably the break. Even now it's going to be Labor Day weekend. You start working for yourself now, so you're happy.

Anthony Carrao:
So congrats and everybody out there actually making money this year and not having to pay taxes.

J.R. Rotchford:
Yeah, that so back to the PGP Loan, back to social incivility, back to all this stuff. So comparing the PGP loan to the student loan debt forgiveness seems kind of like apples and refrigerators to me. You know, the reason I took out two PGP loans because I didn't know what was going to happen. I mean, we've leveraged our money. I don't have huge money sitting in a money market making 0.001. I mean, you know.

Anthony Carrao:
We spend like almost every episode talking about how much we don't trust the banks. So I would not expect you to.

J.R. Rotchford:
Correct. Yes. And by the way, if we have time, we can tell you a couple of alternatives to the bank, too. So with the loans, I did it. First of all, going into it, they said these are forgivable loans. And I really wrestled with that because I'm like, I'm always against us giving all this foreign aid to countries that want to kill us and chanting death to Israel, you know, death to USAA, USAA, we want to kill you over at USAA and the U.S., too. So we want you both dead. So, I mean, it's funny because I wrestled with getting those loans. You and I talked about it at length, Anthony. It's like, is this the right thing to do? But we're like, Well, let's get these loans, let's put the money aside. And if our business shuts down this bridge, this gives us a bridge gap til we get another, another firm or whatever comes our way. You know, at this point, at least you can go back to engineering. I have no skill. I've been here a quarter of a century. What I'm going to do starting construction now, you know, I mean, what am I going to do? So I was nervous. And the woman that put this picture on Facebook of my student loans, she it was incorrect.

J.R. Rotchford:
It showed a screenshot of me at Rotchford, an associates conveniently located in Sunset, Arizona, taking out two PGP Loan PGP Loans. It's hard for me to say that PGP and paying them off. Oh no, it said they were forgiven. That is not true. I am currently paying $261 a month to repay the loan. And by the way, I don't even want to get into all of the politicians that took them out and they all got theirs all forgiven. They're not paying them back, whether mandatorily or voluntarily, you know. Isn't there a basketball team? They got like 4 million something. I'll bet they're not paying it back, but I am. So this thing with the PGP Loan, though, that we came into it knowing that it was presumably forgivable, the government told us to shut down our office. The government told people to go home and go out of work. Well, how can I make money if I'm not at work? So it was totally different. It's pretty voluntary to take out a student loan. Yes, you're right. When you're 18, it seems like it's not, but it kind of is. You can join the military. You can spend three or four years in the military and then get free college. Woo free. It's all free.

Anthony Carrao:
So free if you live through the military for those years.

J.R. Rotchford:
Correct. And in this world right now, I probably I'm not trying to be a anti military person. You know, I do have a son in the military. I was in the military. It's I am a big believer in it. But right now, the world is a little sketchy. So be careful before you raise your hand.

Anthony Carrao:
It is dangerous in schools anymore. So it's almost good point.

J.R. Rotchford:
So yeah, I mean, speaking of dangerous, you know, last weekend in the Phoenix area, there were 17 shootings, there were 11 homicides. So, you know, Chicago, it's it's going that direction. I think the whole country is on edge. You know, let's just wrap it up with this this student loan debt thing. It's people are passionate. There's such good arguments on both sides. But I think part of the whole thing is be nice to each other. Know if you got your loan forgiven. I'm happy for you. You know, I mean, personally, it.

Anthony Carrao:
Comes back to the government's going to waste this money anyways. You know, if you can take advantage of it, I mean, not take advantage. I guess that's not the right word. Like we really did, like we could. I mean, people want to buy stocks right now. Right. And they have for the last few years and the stock market's gone up. But we've been very hesitant because we know what's actually bringing up this market and we know it can't last and we spend. If you listen to any of these shows, spend so much time telling people, pay out of debt, you know, get out of debt and then your income is your income and then you can invest. Instead of me trying to tell people, you know, if you put $500 away every month, 7% compounding interest, you'll be a billionaire in 11,000 years or whatever it is, because that's just standard. That's not advising that salesmanship. So we can make a lot more money and not have to ever worry about keeping the doors open and taking out loans. But that's not the right thing to do as an advisor.

J.R. Rotchford:
So that was a beautiful segue. We are gone from the student loans on to financial planning. Let's talk about that for a second. Let's talk about the markets since you opened that door. You know, one of my pet peeves for the last, I don't know, 15 years that I've noticed it is people like me and you, people that are financial advisors were out there telling people to buy the dips. We're out there telling people it's like, you know, you've got to stay invested. If you miss the ten best days of the market, you're doing this. You know, where are people like us telling people, let's not just look at buying the dips, let's look at selling the peaks. You know, you have a 12, 13, 14 year run up in the market. That's people are still just jumping in wildly. Where were people like us telling people, lock in some of those profits? We were we were we've been sounding the alarms. We've been telling people pay down debt. You know, yes. If you have a41k and there's a match, should you at least get it for the match? Of course. But, you know, people that were putting money in stuff that they're going to have a huge tax bill later. We've got a big tax timebomb.

J.R. Rotchford:
We're trying to tell people, lock in some of your gains. You know, you take $1,000 to Las Vegas. If you have 2000 that people would discipline, take their original investment, put it in the other pocket, then they're playing free for the weekend. Obviously, that's not so easy to do. It's easier said than done or Vegas wouldn't be so beautiful. But you know, when you look at the four on K, we had about five months this year, 2022. The first five months were pretty ugly. I mean, all the account statements we looked at were really far down. And then also we got about, I don't know what, five weeks of, oh, what a relief. Everything's going back up. I'm glad I didn't sell. You know, I'm glad I bought the dips and now it's dumping again. You know, a week ago, a week ago Friday, last Friday, the Dow Jones, by the way, have you ever realized that that's only 30 companies, big blue chip companies? The Dow Jones was down over a thousand points in one day and then Monday it was down a couple hundred points. Today's Tuesday, August 30th. I don't know what it's doing right now, but it was down when we came on.

Anthony Carrao:
This is down a couple hundred right now. But again, it's still the middle of the day, so it'll change.

J.R. Rotchford:
Well, yeah, and you should when there's volatile times, really, you shouldn't micromanage things. You should look just at the end of the day. But my point being is this just like 2007, 2008, you know, the market had a big downturn. And then all the people that do what I do, we're trained to tell you, don't panic. It's only a paper loss. That's another one of my pet peeves. It's only a paper loss. If your advisor says that too many times, ask them when. When is their paper gain? If I've made a whole bunch of profits over the last decade, isn't that only a paper gain? Should I take out some of that profit and pay down my accurate loan? Should I buy a little piece of property? Should I do something different? Or they're going to say no, because your job as an adviser is to get money from them to you, keep them invested. And a lot of that you're right, it's salesmanship. You know, the brokers make money. I mean, it's how this system works. So I have to be careful because we are advisors too.

Anthony Carrao:
But here's the thing. Being year two down or year to date and being down, you're not down. You're still so much higher than you should be. The market in both bubbles, right? I'm going to use approximate numbers. The Dow Jones was about 12000 to 15000. And think and looking at rough numbers right here before the drop in March of 2020, it was at, what, 27,000, 28,000 in that range. That's that's insane. That's so much higher than our peaks of the past. And then it dropped down to 21,000 my head. I thought it was closer to 18 and 2020, but. You're still up so high. I mean.

J.R. Rotchford:
You're not 32, but around 32,000 right now.

Anthony Carrao:
The longest run of an upcycle in this market started in 2009, and they say it ended in 2020, but 2020 was down for one month before they started printing money and inflating the market again. So I can't I don't think one month is a business cycle that's a blip. That means essentially we have shot up nonstop from 2009. But what has gotten better, what has made these companies more solvent was made this country better. Like who has money now? Right. Bezos. Musk. Do you do you listen to this show, or are we seeing just a massive creation of wealth like we did in the fifties where everybody has something? You know, to hold on to their having homes and cars. I mean, used to have single income families, used to be able to buy a house and a car and support a spouse and have children on one salary. You can't do that now. You can barely do that with two salaries.

J.R. Rotchford:
You are hitting one of the ten pillars you probably didn't even think you were shrinking middle class. The rich are getting richer by leaps and bounds. The the impoverished, the poverty level people or below are hovering. We give them free internet, free phones, EBT cards. We help people. We're a compassionate nation, but the middle class is shrinking rapidly. And believe me, ESG, you know, the the what is it, the disinformation governance board, all this stuff that keeps coming up governmentally. It's going to crush the middle class. So get ready. I mean, do we have two years left or ten? I don't know. But when they cut your Social Security, when they raise your Medicare Medicaid, when they raise your taxes, who is that going to affect middle class? So the stuff you're saying is correct. If you've had a decade run up in your accounts and your advisor is touting that, but not saying that you should be nervous right now, maybe get a second opinion. I mean, I don't care if it's us, just it's your money next to your health. It's pretty important. So seek out a second opinion, start doing some research. I mean, when you look at what's going on right now in our country, you know, monkey pox, chicken pox, whatever the heck that is.

J.R. Rotchford:
You know, we have such a short attention span. We were talking about baby formula shortages a few months ago. We were talking about diesel exhaust. We were talking about shortages. I can't even spit it out right now. You know, that stuff's still on the table. We do realize that, right? It's not corrected yet. We talked about over 100 food plants in this country alone that were either set on fire. You know, all this stuff is still on the table. So part of this whole thing, you be awake right now. If you bought in over the last few weeks when things were down and you feel like it's the right thing to do and your long term investor, wonderful. But if you're feeling like something is wrong underneath things, make sure you get a second opinion. Make sure you really watch your surroundings. Right now, I'm still telling people, put away a little extra food and water. I mean, I still think there's a likelihood of food shortages. You know, the person that reached out to us on the 14067 executive order, specifically section four, we're heading towards a digital currency. We're heading towards banks being insolvent. I mean, we have big, huge things on the table. So make sure you're.

Anthony Carrao:
Not afraid to because I addressed that in the email. But currency has a shelf life being the world reserve currency, and it's between about 80 and 120 years. Right. There's cycles. So we're regardless of moving to digital, something is coming to the dollar in the near future. So we have to be prepared for that. So it just happens to be coinciding with this huge switch to digital currency. So it's not like we're being forced into the digital currency and that's going to ruin the dollar. Note The dollar is kind of already on its way out.

J.R. Rotchford:
Which is our way. We're being forced out of the world reserve currency. I mean, everything points to what you're saying being very much accurate.

Anthony Carrao:
All right. So that's it for today's show, if you like what you heard, have questions about any of the topics today, which I guess was just one topic. But if you 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. Listen to us. Wherever you subscribe to podcasts, there are no minimums. There are no costs for appointments. You have nothing to lose by getting a second opinion on your financial situation. And we will see you again next Saturday at noon right here on 960 live. Adrian, thanks again.

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 dot com 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. 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 Corio. Learn how you can reduce the taxes you pay before and during retirement. Another Money Show every Saturday at 4:00 pm on 960. The Patriot Schedule Your free no obligation consultation now by calling 6235230444, that's 6235230444.

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