On this week’s show, J.R. and Anthony discuss the future of the U.S. banking system and the possibility of currency becoming completely digital within the next few years. Plus, the guys play clips from an FDIC meeting discussing these possible changes. They also share an update on the COLA for 2023.

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1.6.23: Audio automatically transcribed by Sonix

1.6.23: 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.

Anthony Carrao :
Happy New Year, everyone. Here we are your hosts, Anthony Carrao, J.R. Rotchford taking a break from our day-to-day as financial advisors with Rotchford and Associates, a fully independent fourth-generation family practice right here in Phoenix, We have this show to bring in news and financial matters that you may not be hearing on those other shows. So we're aware that the last thing you need is Another Money Show. But we appreciate you here and listen to us.

J.R. Rotchford:
So, yeah. Happy New Year. You know, New Year, new you all that happy horse stuff, You know, we're going to be different this year. There's going to be no current events, no ranting. We're going to totally revamp the show to be 100% financial. So and I am.Lying through my.

Anthony Carrao :
Resolution?

J.R. Rotchford:
No, no, my New Year's resolutions. I'm going to eat more. I'm going to oversleep a little bit more. I'm going to swear more. That's I got stuff to do. The one thing that we do need to do as a New Year's resolution, we need to thank Jim the producer more. We need to thank Jim more. You know, he's got his own podcasts. He's got a thing called the Lab. I want to promote Jim real quick. I don't know much about baseball. I know you do, but I don't. And listening for the last, I don't know, a week, week and a half, it's interesting how much I'm picking up so quickly. So a good job, Jim. Good job educating people about baseball and its intricacies. So yeah, no, no new me, no New Year. Everything's going to be the same. But today is we're recording this on the 4th of January, four days ago, on the 1st of January, that light switch flipped. Thank you, Riley, for pointing that out. We appreciate you listening. And the good news is this year, it's nothing but good news, you know, I mean, everything's good. We did, you know. Right? Right. I don't know when it was last right before Christmas or New Year's, we passed the big $1.7 trillion. There's not even a name for it. Usually they have these creative names. It's just called the omnibus bill, I guess. And I started looking through it. It's funny, you know, it's a little over 4000 pages, so and there's no pictures. So I had a little bit of difficulty in just a few pages I saw. But I did find one of the things that we're putting a bunch of money towards steroid induced hamster Fight club. Let me say that again. Slower. And I'm sober. I'm not high. I know marijuana is legal in some states, but I don't do it. But anyway, so let me let me say that slower steroid induced hamster fight club, are you are you proud of your representatives, America? Because that and I'm not kidding.

Anthony Carrao :
Are you serious? Where'd you find that?

J.R. Rotchford:
In the bill? Google it, start doing keyword searches, look for the word hamster. And then another thing for me, it gets worse. That's just one example. Another one study of the romantic patterns of parrots. So apparently and there is a lot of animal, there's a lot of wildlife money flowing through that bill, you know, 1.7 trillion, we're throwing the word trillions around now, like it's not a great deal of money. It's a pretty good deal of money. So and when you add it to the 30 trillion in debt we're in right now, we you know what? The light switch got moved. It's not January 1st, 2023. Sorry, Anthony. Now it's January 1st, 2024.

Anthony Carrao :
Giving a date.

J.R. Rotchford:
It's going to be January 1st, 2024. I need to look on a calendar and see what day of the week that is. Yeah, get ready because your government is putting money towards the study of romantic patterns of pair parrots. I can't even talk about this, you know. And why? Why did the senators cave? Well, I can tell you why. Because they're chickens. They. Everybody goes along with each other. They reach across the aisle. You know, today there's there's fighting about who's going to be the speaker of the House. It's insane. You know what? They didn't want the government to shut down. They wanted to keep the government operating so they had to pass it without reading it. The best thing that could happen to this country is if the government shuts down, take away the checkbook, get them out of the way. Let us go back to where we're we're thinking for ourselves. But I don't know if that's ever coming. So, yeah, no new me this year. I'm going to rant and rave. I'm going to be a little bit worse because the more I read I had a little downtime around the holidays and the more I read, the more frightened I am.

J.R. Rotchford:
I mean, things are things are way worse than they were a year ago this time. So I don't know. People are asleep. I always bring up Dancing with the Stars and the masked singer in this candy crap that's on TV. We better wake up. You know, you and I talked a little bit about our banking system. We should probably start with that today. I have several articles that are super important, but probably the most important thing that we can kind of rattle people about, you know, we have been talking since, what, last March about the executive order 14067, Section four. They are implementing a digital currency. I don't think it's conspiracy theory anymore, especially because the day before Thanksgiving of 2022, they started testing it. It's a 12 week test of how the system will go. So that's still going on. Have you heard about that? Probably during the commercials of the messenger, they're talking about that. So that's going on now. We add a leaked video of a three and a half hour FDIC meeting where they talked about how the unrolling of our new day and time is going to take place.

Anthony Carrao :
Is it? I mean, I don't necessarily think it's leaked, I thought. They just released those videos.

J.R. Rotchford:
I don't know that that's true.

Anthony Carrao :
Maybe they have a lot of videos. I couldn't find this one, though, until you sent that link from somebody else post in it. But the video he's talking about and it was a funny segway because you're talking about people just being asleep and not ready. And essentially that's what the FDIC is talking about in this meeting of November 2022. This is the FDIC Systematic Resolution Advisory Committee, and we're going to play a few clips from it because, again, it's it's funny how we bring all this stuff up on our show. But it's just, you know, it's. J.R. And Anthony, what do they know? Well, now we've got clips of the FDIC board themselves saying all the exact same things that we've said. So we're going to play a few clips in. The first one is essentially this man talking about the need to disclose this. This whole meeting is about if there are issues with the banks, if there's balan's, how do we disclose this to the public? And he's saying that we need to, but it's how and will people even understand? So should probably we'll start off with that one.

J.R. Rotchford:
So when I hear these people and I use the term loosely, when I hear these people talking and I did get through the entire three and a half hours, you know, it's overwhelming. So some of it I need to go back to. There's one little block in the meeting that basically talks about how dumb we are in the military. There was a term called need to Know. You had to be on a need to know basis to know certain things. It's funny because basically, you know, saying that we're going to scare people and all this stuff. It's like, what? I thought this was a nation that helps each other and supports each other. We're about to have the most sweeping change the country has ever been in. And all these people care about is how to do it gently and how to make sure because.

Anthony Carrao :
If everyone knew the truth, they would freak out. I mean, all this stuff that we're telling to people, most people just have their head in the sand or, you know, it's stuff that they already know or privy to or aware of. You know, I kind of get it.

J.R. Rotchford:
But let me ask you a question. Would you rather people start preparing and organizing or would you rather the change takes place and then they all freak out on a monday? This whole meeting is about how Friday night everything's on a Friday night. When do the Affordable Care Act get passed? Or was it Friday night after 5:00 Arizona time? Lehman Brothers, Silver State Bank, Desert Hills Bank, my old next door neighbor. When does all this stuff happen? I've been saying this for years, Friday night, because a, you know, two days there's football and we have the attention span of a steroid induced hamster. I mean, you know, two days go by and we're less upset. The other thing is, if they close the doors to the bank on a Friday night after 5:00 Arizona time, so I can't get into the bank on Saturday and Sunday, What happens Monday morning? We saw what happened in Greece. I mean, if you if you look at the rest of the world, there's a lot of people that have gone through this. It's funny, there was violence. There were a lot of people that didn't want to go anywhere near the banks. The people that did there were people literally set on fire. A little hard to find that in our media. You can find it in other countries, media. It's to me, it's just shocking. I do understand and I understand your point, Anthony, that we don't want to alarm people. Well, we've been trying to alarm people, you know, for the last I don't know what, eight, nine months on this show. People need to be alarmed.

Anthony Carrao :
And we have nothing to lose, though. I mean, these are big higher ups and they've got a lot to lose when people realize the truth. And that's we're going to play a second clip to essentially, you know, the first guy spoke, says we need to start telling people. The second guy says, well, if people want to know, they'll they'll figure it out. There's a lot of people in this room with high powered attorneys that need to know this stuff. And everybody else doesn't necessarily need to know because what are they going to do with this information? He says something to which I think is hilarious. But he says that talking about how everybody has this facade of the FDIC and how great it is and how it will take care of, and that's what they want you to believe. But he says that we have probably as a society, more faith in the banks than this board does this.

FDIC Meeting:
I am a bit pessimistic about your ability to communicate with the people who really need to know in terms of a crisis. There was a lot of interest just after the crisis. It's dwindled over time and so people are sort of less and less interested in getting into the nitty gritty and some of the really interesting developments. I would think your strategy ought to be to disclose as much as possible to people who professionally need to know about it, and that would certainly include the ratings agencies and the people within the banks who are responsible for these judgments and simply of publicly available a place where people can go if they need to know more. Because we're dealing with a society where people are getting their information and tweets. There's just no patience, I think, for going through the elaborate and careful planning that has gone on. It should be there. It should be accessible when people need to know. But I don't think you have much hope of reaching a public that doesn't have a professional need to know.

J.R. Rotchford:
So, Anthony, you and I have been talking about the FDIC for years. I was telling you that it's insolvent When you first got in the office four and a half years ago. It's currently got in the range of 1.23% coverage for our covered accounts, meaning under 250,000. If you have more than 250,000 in a checking or savings account right now, I'm sorry for you. If you haven't been paying attention, the country is broke, but it hasn't been solvent. It's it's a joke. Why don't we do this? Let's take a break. When we come back from the break, let's talk a minute about the FDIC, the Federal Deposit Insurance Corporation. And let's dig into it just a little bit and let's talk more about that meeting. I think it's important. So thank you to start off your new year being with us. We appreciate it. Welcome to 2023. This is this is the year. Keep keeping your hands and feet inside the card at all times. Make sure you reach out to us https://AnotherMoneyShow.com Or give us a call. 623 523 0444. Thanks for being with us.

Producer:
Remember all of J.R and Anthony's listeners receive a free financial consultation just for listening to the show. Visit AnotherMoneyShow.com 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 AnotherMoneyShow.com.

Anthony Carrao :
Welcome back. You're listening to another Money show and think, J.R. Rotchford, we are talking about the banks again, big surprise. We spent most of our time in 2020 to talk about the banks, and that's what we're going to start with, 2023. So we just listened to a clip of the FDIC, one of their advisory boards, talking about how maybe we don't need to disclose how sketchy the bank system is right now.

J.R. Rotchford:
Well, and we've been telling you it's sketchy for a long time, if you remember correctly. Anthony, we got some advice. We got some advice. A woman named Jamie said that when people watch YouTube videos, they want to see it 2 minutes or less. And she's like, if it's subject matter like you have, you can get up to 5 minutes. Other than that, you're going to lose people. So yours were all great. Yours were 5 minutes and less. Everything you talked about, we get to me to do the bank 121 minutes and 21 seconds, if I recall correctly. And then we went to redo it and I got it. Oh, no, no, that's not. I'm doing it backwards. It was 8 minutes and something seconds. And we agree that Jamie was right. We got to bring this thing down under 5 minutes. So the 8 minutes we redo it and it goes to 21 minutes and 21 seconds.

Anthony Carrao :
So and you can't condense anything.

J.R. Rotchford:
I can't. I cannot. So back to the FDIC. We've been warning you, it's right on their own website. Our reality is way stranger than whatever we can come up with. If you go to FDIC dot gov and poke around, they're telling you they have no money and yet we still have faith in them. It makes zero sense to me. Years and years in this industry, there's been a phenomenon that comes and goes every few years. People ask me if they should buy foreign currencies, the dinar, the Dong, the Denali, the riyal. Over the years I've already told people it's like, you know, some people come to them and say, if you put in $100, they're going to revalue their currency and you're going to have $1,000,000. You know, there's different versions of this. They usually want a lot more than 100 bucks. By the way, it always ends up with you becoming a millionaire. So this has been going on for the 26 years that I've been in the office. I've heard about this. I've never seen it happen yet. Now, interestingly enough, earlier this week I read that the rial, the currency out of Iran actually is finally going to revalue. But guess what? It's going to they're going to the digital riyal. So and it should be probably if you're listening to this on Saturday, it should be implemented by today. So we are seeing country after country going towards a digital currency and we still don't see what's happening here. Why do we have to be talking about the FDIC meeting? Because they're getting ready. You know, is it going to happen in 2023 or four or five? I don't know. I can just tell you, it sure seems to me if we get through 20, 23 and we still have the fiat currency, the world reserve currency, I'll be shocked.

Anthony Carrao :
I will be something else we bring up on this show all the time is the term bailing. So many people are still confused as to what that means. And we have a clip from this FDIC board meeting where they mention that people need to realize that bail ins could be a real thing.

FDIC Meeting:
I wondered whether there are some market tests of whether you're being heard and I think about TLAC. So TLAC should spread, should respond to good and bad news about the institutions. And it's really important. I mean, it's a little bit conflicted, right? I mean, it's important that people understand they can be bailed in, but you don't want a huge run on the institution. But I mean, they're going to be that's and it could be an early warning signal to the FDIC and the primary regulators when these things happen. And there may be some other crises. This is similar to what Jay was saying in the market, that you can tell whether people understand how the who's going to be protected, who isn't going to be protected.

Anthony Carrao :
So, again, all of this stuff we've been saying on this show since we began, here's the proof. You know, it's one thing to hear Anthony and J.R. say this, but we're not making this stuff up again. We want you prepared, not scared. There's nothing that you can do listening to this show that's going to stop this collapse if it happens. And they say win a lot, too. They say if and when you're listening to some of these clips. So they are preparing. They know that this is something that's coming. Well, like J.R. Said, it's going to come on a Friday night. He talks about that all the time when he watched the FDIC take over the bank that was right next to our office years ago. It happened on a Friday night and they're hoping it'll happen on a Friday night. And then finally there's the funding mechanism.

FDIC Meeting:
What part of that would. Be most helpful to boost confidence? I do think that the OLF and using it as the big the big gift, it's not a gift, but the big tool that we need in title to to help provide confidence. But what do people need to know to really to really get that? How important is it to explain the rules and the mechanics for the off how money will get from point A to point B? How would we use targeted guarantees to allay concerns about excess cash use?

FDIC Meeting:
There's a lot.

FDIC Meeting:
Of questions here. And so there are a lot of things we've been thinking about. And what we want to hear from you today is what your what you think would the priorities would be in order to go about setting expectations appropriately in public, about how we would execute title to so that if and when we do have to have that announcement on on Friday night, ideally Friday night that people are in a position to receive it.Understand it and say.Yeah, that works and we can see how this will happen. Of course there will be doubters, but there's a lot of things going on.

J.R. Rotchford:
So you said right before that clip hoping, no, there's no hope. I mean, this whole meeting, they're brainstorming amongst themselves. My only question, going back to the military reference of a need to know why on earth do they record that meeting? I mean, is there some Freedom of Information Act segment that says you have to record everything you do? This is insane. You know, they're.

Anthony Carrao :
Saying the whole meeting is how do we tell the public without scaring the public? That seems to be the whole basis because like they they say a couple of times and I don't know if it's in these clips, but other stuff that we watch. So all of this information is readily available. You know, when we quote stuff about the FDIC, I'm pulling their paperwork and we talk about Social Security and what they need to stay solvent. I'm pulling their paperwork. When we talked about the pension plans and how broke they were, I mean, they were 64 billion in the hole, if I remember correctly, before they got the bailout last year. We're pulling this information from these websites. It's not necessarily that they're trying to hide it. People aren't looking. People don't care.

J.R. Rotchford:
Yeah, they probably have a counter. They have a website counter on the FDIC dot gov. And so far in 2022, it was to me one was out of Glendale, Arizona, one out of Peoria. There were two two visitors to the site. No, I mean, you're right, it is out there. So then later when people do panic and when there are sweeping changes, they can say, well, you could have known this, you know, this meeting on how to how to ease into the public what they're going to do. There is no way to soften this. I mean, there is no way that they're going to get a soft landing to borrow the recession versus inflation. This this whole meeting. It's funny because if I pass it along to 100 people and they see that it's three and one half hours long out of 100 people, how many do you think would listen to the whole thing? I'm guessing one or two. I'm thinking 98, 99% of the people, even if you told them it was a solid ten, on a scale of 1 to 10 for how important things are going to be in your life imminently, people don't want to hear it.

J.R. Rotchford:
And by the way, you know, here we are, another year more doom and gloom. But we have solutions. You know, there's nothing you can do to stop it. You said you are absolutely correct, but there are things you can do to help your personal situation and to get ready for it. I mean, if you're sitting with a bunch of money in the bank, first of all, you probably haven't listened to us much, but we want you to have some cash. We want you to put money with insurance companies. We want you to buy hard assets. We have all kinds of ideas for you, one on one, depending on your income, your assets, what kind of emergency fund do you have? Where is it? You know, we have ideas for you that won't stop what's coming, but that will make you a little bit more. You'll have a little more peace of mind. And that's going to be important because, believe me, if you look at Cyprus, Argentina, Brazil, Venezuela, you name the country that's been through some issues, I can tell you people are going to panic. And the less you have to panic, the better.

Anthony Carrao :
And this is stuff we cover all the time to. I mean, you can reach out to us. We'll point out the episodes because you can definitely check out Another Money Show on our website wherever you listen to your podcasts, whether it's iTunes or Spotify. I mean, we have episodes dedicated to just bail-ins. We have episodes dedicated to the FDIC. I mean, this is stuff that we've been trying to warn you guys about for as long as we can, because we're aware that this is a problem and it will reach you eventually. So how do you get prepared if you want to sit down with us? We are more than welcome. You're more than welcome. And we'll help you fix this to your specific situation. But in the meantime, reach out at AnotherMoneyShow.com.

Producer:
You're listening to Another Money Show.

Anthony Carrao :
Welcome back. You're listening to another Money show. And of course, we were talking about the banks because it's our favorite subject. But most importantly, we're talking about how we can help you get through this. There's nothing you can change with the chaos of the world around you, but you can better prepare your situation. And I think we've got some more financial news for you.

J.R. Rotchford:
More financial news even more important than the banks. I doubt that, Anthony.

Anthony Carrao :
I mean, the Secure Act that some of the changes that's kind of important, that will definitely affect some of our listenership.

J.R. Rotchford:
Well, we're housed out of Sun City, Arizona, so if you haven't heard RMD, depending on your birth date, it has moved up four days ago as we're recording this. It moved up to what is it.Now, 73.

J.R. Rotchford:
73.

Anthony Carrao :
75, in ten more years.

J.R. Rotchford:
In ten years. So in 2023 now RMD is 73. It went from 70 and a half years ago to 72, now it's 73. In 2033 it'll be 75. A couple of thoughts for you. The first thought, what the hell was with the 70 and a half? What's with 59 and a half? What is the haves have to do other than make us think these people are super smart and there's this heavy duty calculation going on.

Anthony Carrao :
Really good lobbying from the decimal community, the decimal point.

J.R. Rotchford:
Corporation.

Anthony Carrao :
Lots of money they're being spent in in Washington. You got it. What is the.

J.R. Rotchford:
What is the ESG score of the decimal foundation? That's all I want to know.

Anthony Carrao :
It's nothing is better for the world than decimal points.

J.R. Rotchford:
If you agree.

Anthony Carrao :
The decimal point.

J.R. Rotchford:
Those people all drive Teslas. By the way, you can't charge a Tesla depending on how cold it is. We just learned over the holidays there's people with electric vehicles that are stuck.

Anthony Carrao :
Have you seen them when they can't open the handles either because it freezes shut because there's no physical anything to grab, you have to push in so it freezes and can't get into it.

J.R. Rotchford:
Yeah, but.

Anthony Carrao :
This is the biggest, right? Toyota, Porsche, Honda, all these companies have been around Chevy Ford for hundreds of years, yet Tesla is worth more than all of them combined. Or at least it was. I don't I don't know that it's worth as much now. It's lost a lot of money in the last year.

J.R. Rotchford:
It has struggled, but yet we're going to keep pushing that direction. So welcome to it anyway with the RMD, with with the 70 and one half and the 59 and a half, it's just odd to me. So thank you very much government for going to 73. I do have a question for you. So we've kind of agreed with most people that we talked to Medicare, Medicaid, Social Security, see they're broke, Social Security, disability, the VA benefit system. Everybody is broke, right? So instead of moving RMD up, instead of saying, you know, it used to be 70 and one half, we need more help, you've got to start giving us those tax dollars earlier. We're going to move it up to 68. They're moving it back. What would be the explanation for that? Why are they doing inflation based cost of living, upward adjustments on our Social Security? Well, because things cost more. People on a true fixed income need more money. Yes, but we're broke. So all we're doing is accelerating the problems that we're in. So as much as it's good for people that we delay and by the way, if you don't know what RMD is, that's the required minimum distribution. And if you didn't take it out, if you didn't have whatever company you're with, take it out. There was a 50% penalty on that money. That is also part of this act that is being lowered. What is it, Anthony? Did you notice? Is it like.

Anthony Carrao :
10%? No, it's going to 25 and then it's going to go to ten, which yeah, that 50% penalty was obnoxious. But we've seen people forget here and there. And, you know, as much as it's a scary penalty, I don't know how many people have been you know, the IRS has gone after four. That usually kind of flies under the water, however. Yeah. Now we've got 87,000 more people come in to help find it.

J.R. Rotchford:
Nailed it is Anthony career.

Anthony Carrao :
In the past. Who knows if you're going to in the future. And it's funny you say that about you know pushing back the RMD and now they're getting their taxes later. They did make one change, though, where they're going to get their taxes sooner. And actually, I think this is a huge plus for this bill. So I'm. I'm happy to see it. But moving forward, there's been a big push for Roth 401 is not just traditional for one case, but Roth, where you do pay your taxes up front. But the contributing the employer match always went to the pre tax tax codes to the traditional will. Now employers can make their contributions into the Roth as well.

J.R. Rotchford:
Let's do this. Let's take a quick break and then we'll come back and talk about that a little further. So reach out to us team in AnotherMoneyShow.com or 623 523 0444. Thanks so much for joining us.

Producer:
Thanks for listening to Another Money Show. If you like what you're hearing, be sure to leave us a rating and subscribe to the show wherever you listen to podcasts.

J.R. Rotchford:
Welcome back to Another Money Show. Thank you very much for being with us. I'm J.R. and I'm with Anthony. And the one and only. I'm taking it. Sam, we haven't seen you in a while. The one and only Jim Terra Boca is our producer, so we beat the bank thing to death. We talked about RMD. I mean, this has been a good day, but we have so much more to talk about. So luckily we're still working on getting our six-hour-a-day, five day a week show, so hopefully that happens soon. So. Other than the banks. All kinds of stuff is going on. Did you hear that for one case are changing where it used to be the 401k administrators, the third-party administrators, the money managers. They had like a fiduciary rule. They had to do what's in the worker's best interest. The presumption is the workers don't know how to run their own finances, so they're supposed to take care of them. It's something like 91% of all people. When they do a 410k, they go into the target their retirement date allocations because they don't know what to do. So in November, just a couple of months ago, there was a little change where they want to start boosting up ESG friendly social score companies. So they changed it to where the 41k providers do not have to do. What's in the best interest of the client. Is that kind of.

Anthony Carrao :
Yeah, I read through that. I think that's more I actually had a client reach out and ask about that recently. I think it just means that they're going to have more options. You know, if you have a41k, you've got 30, 40, 50 allocation options, I think you'll see more ESG. But all of that's basic advising. I mean, those retirement day funds, the 7030s and 6040s, it's all just basic financial advising. So I do think there's going to be a push to add all these eco friendly companies in there, but I don't necessarily see it as a negative.

J.R. Rotchford:
I do. I'll tell you why. Tell Me allows it allows people's agendas to go forth. It allows fiduciaries to interject their politics into other people's lives. Let me let me read a little snippet to you. Harvard Business Review reported that findings from the multiple studies comparing ESG and non ESG funds, if this weren't serious and potentially disaster disastrous, the results would be laughable. Not only did the non ESG funds significantly outperform the ESG funds, but also returned higher sustainability scores than the ESG funds. Additionally, the non ESG funds had better compliance with labor and environmental rules. Essentially, ESG funds under delivered everything they promised and are inferior to non ESG funds. The non ESG funds had better scores than the ESG funds. A 2020 study found that underperforming managers frequently spoke publicly about the company's commitments to ESG, blah, blah, blah. So what does that mean? It means you're adding funds that do less on the performance scale than non ESG funds. So, yes, they have more choices that people don't take the choices anyway. If 90 plus percent of the people just go into the target date, 20, 30 or 2050, then none of this matters. If the people that know what they're doing are the ones that are going to look at these funds. So if they lean politically one way or the other, they can lean your 41k that way. I think that's bad. I mean, more choice is good. I agree with you The wrong choices, not good. So I.

Anthony Carrao :
Don't know. I mean, it's still I don't think any of this matters because it doesn't matter how smart the investment is. I see everything falling, you know, any day now. So I don't know. I mean, things things are always constantly changing. So that is interesting to find out that the the non ESG was actually more sustainable. So and maybe maybe you've changed my mind a little bit on this.

J.R. Rotchford:
Well, and I'll send you the article because it's interesting. If you read the whole article and the context of it, it really does. It does what I thought it would do. It says those funds are not a good idea. They're being pushed by a political.

Anthony Carrao :
I don't see much really changing anyways because. Right. You talk we talked about the fiduciary rule, our last episode. How does it really change anything? So you're allowing these fund managers to get this ESG and not have a fiduciary responsibility to the clients themselves, but do you think they're really going to do anything differently? So yeah, you have this big bill and says they can do this stuff and that they should push more for ESG. But just because they can, do you think they will?

J.R. Rotchford:
Well, what if they add more advantages? What if they say, we're going to give you more advantages if you go to these funds and these funds? I mean, I don't know. We're going to have to see if it plays out the next year or two or three. And you're right, it may not matter at all. The first part of the show, we talked about banks closing their doors, which is a you know, I mean, and I've said this the last few months, I think we're going to have a stock market correction that's going to be really, really bad. I think the housing market is going to screech to a halt. I think things are going to get real ugly. Then the banks are going to do a bank holiday, close their doors, a bailin, and then we usher in the digital currency. So you're right. Maybe none of this will matter whatsoever. I don't know yet. And I'm reading here on a zero hedge piece, it says here through a recent poll found that four in ten Americans believe we are living in the end of times. Well, they didn't pull me. Let me go a little further. A Pew Research Center survey of more than 10,000 US adults found that 39% called these end times. I presume that's a biblical reference, but I'm not sure the world's wealthiest are among those cautious of a coming calamity, including billionaire PayPal founder Peter Thiel and Silicon Valley entrepreneur Sam Altman, who have famously laid down roots in remote New Zealand, New Zealand with the express purpose of riding out the end days. So, you know, we read a lot more negative news about the world and our country in general than positive. And I just, you know, I'm just trying to keep it financial and let you know that we're watching what may or may not affect your personal situation.

Anthony Carrao :
That's good. Yeah, Good. Good for given that information, Jerry. I appreciate it, boy.

J.R. Rotchford:
Atta boy. So let's switch gears for a second. Let's talk about emergency savings. 51% of Americans cannot pay more than three months of their expenses through an emergency fund. 25% say they have no emergency fund at all, according to concern. Consumer Financial services company bank rate. Bank rate is a pretty mainstream. They don't seem political. They seem like they're you know, they're trying to see what's really going on in this country and it ain't good. So you're telling me a quarter of working age adults in this country don't have any emergency fund savings at all? I can tell you that we meet all kinds of people that do have an emergency fund, but that's sitting next to their 20, 30 grand in credit card debt. So, you know, we do see people that and hopefully we're changing lives. When people sit with us, we talk about a laddering approach for their financial well being. We talk about what is your income, what is your approximate tax bracket, what have you done to protect yourself? Do you have an umbrella policy? Do you have life insurance? You know, what is what is your plan to ladder out money? We need to know what your emergency fund is. What do you have for two years out, five years out, ten years out, lifetime. You know your passion, which thank goodness has been lifetime income. Income you can never outlive. Well, that's part of a laddering strategy. We have to make sure you have money in case you need tires or an air conditioner or a vacation or any of those different things. And we don't want you to run out of money. So speaking of money, I'm going to switch gears seamlessly here until I say I'm going to switch gears seamlessly. So. And are you hearing that welfare is outpacing medium income in a growing amount of states? I read the stats on this yesterday, and I was I was in shock.

J.R. Rotchford:
In shock. 24 states, unemployment benefits and ACA subsidies for a family of four with both parents not working is the equivalent to at least the national median household income in 14 states unemployment benefits and ACA, which is the Affordable Care Act. Subsidies are the equivalent to a head of household earning 80,000 a year plus health insurance benefits. Am I out of my mind here? Are we saying that bad news is good news? Good news is bad news. The harder you work, the more we're going to punish you through our 87,000 IRS agents. The less you work, the more we're going to hand you. It's going up is what I'm getting at. The country is broke. We have so many things that are broke. Health care, politics, borders. Speaking of borders, there has been an influx of people coming into the country this past year. Nobody's really denying that. And the whole thing is, well, you know, we're the shining beacon, You know, people that want a better opportunity. Are you sure? Are you sure people get here in the first? They do is get benefits, but we're broke. So I don't and I don't want to make that I don't want to go down that road. But you know what I'm saying? We are broke. So back to this little article. This is a higher wage than is earned by the national medium, secondary school teacher, electrician, trucker, machinist and many other jobs. So you're telling me that in a lot of states in this country, I can make more money by not going to work than going to work? How is this going to end?

Anthony Carrao :
So I'm curious, though, because. Is this in theory or are they actually seeing it? Are they saying there's the potential for all of these subsidies? Subsidies? Because I think of clients and people we've tried to help who actually do need help in any time people that do need help try to get these subsidies. I've never seen it work out. I've only ever seen red tape. And.

J.R. Rotchford:
Yeah, but you've seen it work out in your own family. One of your family members, one of my neighbors, a guy that lived across the street, I don't know how he was doing this. I didn't think it was a thing. He was getting 100% VA disability and he was getting Social Security disability or some form of of government assistance. And I was like, That doesn't make sense. It's one or the other. You know, your military service gave you this monthly income, you know, and I'm not happy about the reason he got it, but nonetheless, he got it. But how do you double dip like that? You know, and this thing when you talk about in theory, I do believe that people that try to game the system, people that really don't have a legitimate need, have a much easier time getting the benefits. I don't know why that is. I know if you legitimately need Social Security disability or all text, that affects our our area quite a bit. They say you need to go through an attorney. It's crazy if you don't need benefits. You seem to be able to get them on your own. You know this. I'll read one more thing in this article. A family of four with income over $227,000 qualifies for ACA subsidies in all states. And families earning over 300,000 a year still qualify for ACA subsidies in 40 states and Washington, D.C.. So and I do know.

Anthony Carrao :
Those homes aren't bringing. Bring in home more than that. So you're saying that we could go out there and get ACA subsidies?

J.R. Rotchford:
Yes, I just learned that firsthand. Sandy, retired. Your mom retired. We're looking into what to do for our health insurance, COBRA versus ACA versus private pay. And I was told by the person helping me shout out to Caitlin, by the way, she's super helpful if somebody needs help with that. I was asked about my income limit. There are subsidies going way up there and income, and I'm just in shock. But unfortunately we have to continue this next week because we somehow ran the clock out. Yeah, today was fun.

Anthony Carrao :
Yeah, it was a great show. So but that is it for today's show. If you like what you heard, you have questions about any of the topics we talked about today or if you want to sit down with us to review your personal situation, you can reach out to us at team at another money vogue.com. Find us on the web at Another Money Show. Subscribe and listen to Another Money Show. Wherever you listen to podcast, there are no minimums. There's no cause for appointments. There's nothing to lose by getting a second opinion on your financial situation. So until then, we will see you again next Saturday at noon right here on AM 960, The Patriot.

J.R. Rotchford:
And Happy New Year.

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:
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.

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