1.20.23: Audio automatically transcribed by Sonix

1.20.23: 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.

Producer:
This is Another Money Show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.R. and Anthony are committed to helping more Americans like you, optimize their income, reduce their tax risk and reach financial freedom. So let's start the show. Here are your hosts, Anthony Corio and JR Rotchford.

Anthony Carrao:
Good morning. Good afternoon and good night. Here we are, your hosts of another Money show, Anthony Carrao 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 practice right here in the greater Phoenix area, to bring you information you may not find on those other financial radio shows. We are aware the last thing you need is Another Money Show. But we appreciate you being here.

J.R. Rotchford:
And that's about it for today. Today is our last. All right, Anthony, is this is this a. Yeah, that was it. Now we're on. Thank you.

Anthony Carrao:
Everybody. We're out.

J.R. Rotchford:
When you say good morning. Good afternoon. Good night. When you're not sure what time of the day it is, I think we're tired.

Anthony Carrao:
So I don't know what people are going to listen to this. I mean, we got probably more people listening to the podcast now than we do on the actual radio spot. So I want to include them too. That's when I listen to our show is that night. If I want to put myself to sleep.

J.R. Rotchford:
How do you really? We are like those other money shows, I take it. So how do you find the podcast? You know, don't forget, I'm a little bit older than you. What? What do I do if I want to find the podcast?

Anthony Carrao:
Well, you can find it directly from our website. Another Money show. There are links to all places like iTunes, Google, Spotify, all those major streamers. You can find Another Money Show and we would appreciate it if you did find us. We are lost and we need your help.

J.R. Rotchford:
Well, I think that's a good way to start this, because we do need help. We our whole mission here is to sound alarms. Our mission has never been about sales. You know, do we want to sit with people and help them? Of course we do. But our biggest thing is the world is uncertain and we are trying to let people know that, you know, I'm still every weekend I scour the financial shows and I'm just not hearing anything like our show. So I think it has its place. I did say last week that we're not for everybody. You know, there's a certain amount of people that don't want to know that things are weird and they're not going to like our show. We get that, you know, we're not too sensitive. Well, you you are. I mean, you're a crier.

Anthony Carrao:
I'm an ugly crier, too. It's it's bad. It's so much mascara. Eyes get puffy. And you make a good point, too, because how many other radio shows out there are playing clips of the FDIC talking about balance zero zero.

J.R. Rotchford:
You know, and you can find it on YouTube. All you have to do is start going to like Dave Hodges and all these like alternative media YouTube channels. Salty Cracker, my very favorite YouTuber is Salty Cracker. You got to have a thick skin for bad language. But other than that, it's timely and it's important.

Anthony Carrao:
All those YouTube crazes and we get to be am radio crazies. I love it.

J.R. Rotchford:
But it's well we're podcast crazy too. But the stuff that we convey to people, it's not us. You always say, Who's J.R and Anthony? It's not us. It's stuff that we're just trying to find and pass along. You know, you had said that you don't think that FDIC meeting that three-and-one-half hour bad boy was leaked or whatnot, you thought it was meant to be released? I don't think so. I started looking further and you can't find it. I mean, I honestly believe that that was taken, you know, it wasn't supposed to get to the public, so it's probably not common knowledge.

Anthony Carrao:
Yeah, maybe. Anyway, Right. I mean, the FDIC, I've been on their website a ton of times and they do have a bunch of videos and conferences. And, you know, you can read the notes from them, but I couldn't find that one. So when you sent that video, I was surprised it wasn't an FDIC link. But, you know, the annual report that we quote all the time, that is something we find directly from their website. But how many people are going to that website to find it? Just like how many people are going to the Social Security fund to see what their plan is for when they're broke?

J.R. Rotchford:
No, you're right. And our our whole thing, when you talk about FDIC, it's FDIC, dot gov. All of the information that we convey is readily available. We help people find it. It's once you get people started, they can't go back. You know, once you start explaining to people that the bailin is a real possibility, when you explain that the FDIC is worthless, you know, 1.2, 3% of your money's covered. Think about that. It's you're not going to get your money. It's going to be first come, first serve. So either be early or forget about it and we all go.

Anthony Carrao:
Ahead and have some cash at home.

J.R. Rotchford:
Yes. We always want you prepared, not scared. We say it every week. So. Yeah. And when you talk about FDIC, when you talk about all this stuff, it gets old. People are like, yes, we get it. But then nothing happens. You know, it's the old bankruptcy thing. How did you go broke really, really slowly. And then all of a sudden, you know, I mean, that's how things go. It's, you know, we're wrong. We're wrong. We're wrong until the day we're right. And things are fast and furious. You know, we are very, very instant gratification. You know, our attention spans are so small. You know, I brought up last week. When's the last time you heard of SBF? What's going on? That was a world changing situation and. Now it's already out of the media. It doesn't make sense. So. So speaking of everything going on, we a friend of ours, Kelly, down in Tucson or Valley or whatever it is, sent us an article that was kind of I found it kind of interesting the days of the IRS forgiveness for RMD mistakes may soon be over. I wanted to talk about that for a second leading into this because there's changes, you know, it was always 70 and one half and then it was 72. Now this year and 23 it's 73. And then what is it within ten years or something ridiculous thing. It goes up to 75 to take your required minimum distribution. So in years past, if you didn't take it and by the way, if you're younger and you're not sure what that is, it just means when you get older, if you have a41k or an IRA other than a Roth IRA, which we love, by the way.

J.R. Rotchford:
So if you have a plan that the money went in, it hasn't been taxed yet. The government needs their tax revenue, so they make you take it out. So the people that are in the age bracket of RMD, they've seen these changes this year in the last couple of years. So in the past, whatever you didn't take out, if you missed taking out money, there was a 50% penalty on it, which I mean I'm not sure about you, but to me that seems really steep. So that was an incentive to make sure you take it out. The problem is a lot of people that didn't take it out, they went back later through their CPA or an old agent or TurboTax or whatever, and they said, Oops, my bad, I didn't see it. I didn't take it out. You know, is it is it too late? And the government would pretty much, from what I'm reading and understanding, they would waive those penalties. So it really wasn't a big deal. Well, apparently, according to this article, the days of waiving those penalties might be coming to an end here. So that's I mean, you know, the people that have to take RMD are older. They have to rely on the financial advisors like us to help them get it taken out. They have to rely on the companies where they have money to help them take out the right amount and the little.

Anthony Carrao:
Companies you can set up to do that automatically too, so you don't have to worry about doing it every year. And yeah, I remember Kelly sent that article which I think was funny because it kind of contradicts what we had talked about in the Secure Act 2.0, because they actually talk about lessening the penalties moving forward. So maybe they're going to be stricter. But just on these lesser penalties, that's also I mean. It's an obnoxious amount to be taken out 50% as a penalty for not taking your RMD.

J.R. Rotchford:
Yeah, it's dumb. And my or my question was was how do you get caught? I mean, that seems unlikely unless they audit you, but oh wait, they're going to start doing more audits. So the part in that article that addresses what you just said, be aware though, that the new rules are going into effect in 2023 that could make the IRS less accommodating. For one thing, the age to start RMDs is going to be 73 this year and then 75 in 2033, which means the government is going to be hungry for missing revenue. Even more important, the penalty will be reduced to 25% or 10%. If you're really quick about reporting it, what is really quick? I mean, that's kind of a subjective, really quick, is that like within, you know, the IRS is going to change the age to 75 and ten years. So really quick to me is eight or nine years. But I don't know. And you know.

Anthony Carrao:
What, going back to the FDIC, if they fall below their limit of what they're supposed to keep in their coffers, they have eight years to replace it. Right. So maybe we just go by FDIC rules.

J.R. Rotchford:
I remember you bringing that up. So the FDIC was it they have to keep 1.35% minimum solvency, I believe, for the FDIC money. They're supposed to keep one and a third percent. So think about that. If you have $100 in the bank and we have a modern day run on the banks, if we if we start going towards a bank holiday bail in the stuff we've been warning about, they have to keep a dollar and $0.35 to give you. That's their reserve requirement, but it's fallen under that. So they're in that eight year window. So hopefully they're tightening up that ship and making it right. So, you know, the one one more thing, I know that RMD gets kind of dry. One more thing I do want to bring up where we see it. And by the way, you are correct, if you get a chance to set up automatic RMD every April or twice a year, whatever, do that for sure. You can always call the company and waive it for the year, but get it set up so you can set it and forget it. Where we see that it's a problem once in a while. Over the years if you have an inherited IRA, so the inherited IRA you still have to take RMD, even if you're if you're younger, if you weren't 70 and one half, if you're not 73 and you inherit an ID and ID, if you get a fake ID, you still have to take your RMD on it.

Anthony Carrao:
So we changed that one to with the the first secure act. Right? So unless you're a spouse, you have to pay all those taxes within ten years. You don't get to extend it for your lifetime anymore. But honestly, I mean you may be in a better position paying the taxes sooner, talking about Social Security being insolvent. We've got an article we're going to bring up there, but they're going to be insolvent. And they're saying 2035, you get some people that are denying it. But again, we read their paperwork. So Social Security has said that they don't have any money, which means you have to pay for it somehow, which means raising taxes. So as much as it sucks to pay taxes, be ahead of the game, be prepared for what the future holds because our country is broke and it's got to come from somewhere.

J.R. Rotchford:
So reach out to us and we will educate you on a Roth conversion and so forth. See us at AnotherMoneyShow.com. Call us 6235230444 and please do spread the word about our podcast. We love that you're helping us. We'll be right back.

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

Producer:
Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

Producer:
Another weekend Another Money Show visit AnotherMoneyShow.com.

Anthony Carrao:
Welcome back. You're listening to Another Money Show, Anthony Corio, J.R. Ratchford. We're talking about social security, FDIC. And I think we're going to have a real big segment about not running out of money.

J.R. Rotchford:
We are going to run out of money. We're out of money. We're broke. 32 trillion in the hole.

Anthony Carrao:
Well, the country can run out of money, but how do you as an individual, because you cannot fix all the poor choices that this country has made. But what is in your control is fixing your situation. And that's what we like to help with.

J.R. Rotchford:
Well, and your situation. A lot of this country doesn't have an emergency fund. A lot of this country is in trouble already. And they really I mean, your number one asset is your home. For a lot of people and then your number one income stream is Social Security. And Social Security is broke. It's been broke forever. It's not popular to fix it. It's become a political nightmare to fix it. So they've just ignored it. Well, we read Article after article. Here's another one from January 12th. This one says Republicans sound the alarm on Social Security insolvency. Taxpayers clearly have to worry about retirement. Well, no kidding. They've had to worry forever. It goes on. We clearly have to worry about Social Security and Medicare without adult. Without adult, without a doubt. Even the Congressional Budget Office will say that these programs will become insolvent if we're not careful. What does that mean to me? So the Social Security Administration recently confirmed congressional predictions that funds are expected to deplete by 2035. Remember that number for a second with just enough money to pay to pay 75% of scheduled benefits. So they're not out. They're going to pay 75%. That's pretty good. If they only cut my Social Security by a quarter, that's not too bad. I was getting 2000 and now, I mean.

Anthony Carrao:
Ponzi schemes always work as long as somebody is continuing to put money in, I mean, you'll still have people paying taxes. It just won't be enough to compete with what their liabilities are.

J.R. Rotchford:
Whoa, whoa. First of all, you called Social Security, which is going to be my primary source of income, a Ponzi scheme. That's kind of that's very offensive. But yeah, it is.

Anthony Carrao:
I think it's offensive to Charles Ponzi.

J.R. Rotchford:
Is that his name, Charles?

Anthony Carrao:
I have no idea. I would just. Charles seems like a Ponzi kind of guy, actually. What is his name, Jim, do you know? Because it was it was named after a real good guy, right?

J.R. Rotchford:
Yeah. Henry Winkler, Fonzie, Ponzi.

Anthony Carrao:
The Ponzi scheme. Yeah. Let's. Let's change Social Security from a Ponzi scheme to a Ponzi scheme.

J.R. Rotchford:
Yeah, right on. All right, So remember I said, remember 2035? So just a couple in the same in the same article. It goes on. In September, the Congressional Research Service found that Social Security trust could be depleted at as early as 2034 because incoming tax revenue would be sufficient to pay 80%. Then it goes on. Last month, the Congressional Budget Office warned that funds will decline to zero in 2033 and the Social Security Administration will no longer be able to pay full benefits when they are due. So what is it, 20, 35, 20, 34, 2033? It's interesting to me, they have no idea. And you know what? 10,000 baby boomers are retiring a day. It's been that case for decades. You know, I'm the last year of the baby boomers. And I know that when I look around me, we are the last generation that's going to see Social Security in the same way, shape or form. I firmly believe that. I think we are the last generation of any kind of noticeable wealth transfer other than certain families are always going to be wealthier. But in general, it's drying up. And you know what? You add these self checkouts, you add these kiosks at Home Depot, Walmart, Lowe's, you name it. So the kiosk is expensive up front.

J.R. Rotchford:
Say it's 30,000 per well, 30,000. You know, you keep raising the weight and raising the minimum wage. So first of all, it's going to make up for itself in one year a kiosk. You don't have to pay into the worker's comp fund. The kiosk can't pay into my Social Security. So the revenue is shrinking faster and faster. So I do believe that these numbers are going to come up. I think if I look at the articles next year or the following, it's going to be sooner. Also, they're going to say 2030, you know, this is 2023. So we are heading into this problem coming and you know the answer to fix it. I don't know. I'm not smart enough to do that. I obviously know it's going to take both sides of the political aisle. It's probably going to take, unfortunately to say this, some pain for people. It's probably going to be a mixture of a bunch of different solutions, and I don't think any of them are pretty. But do you think the longer we wait, the easier to get? You know, it's like wetting the bed. It feels pretty good at first, but sooner or later you're going to have to do something about it.

Anthony Carrao:
Well, they'll do what they did to the Pension Benefit Guaranty Corporation to that fund. That was 64 billion in the hole, and now it's 500 million. Up. They'll just bail it out. It's fine. You don't have to get better. You don't have to show improvements. It's a bailout.

J.R. Rotchford:
That's. That's important and all. But what other financial show is somebody going to talk about? Wetting a bed. So I just. I want. I want to.

Anthony Carrao:
Pause. I was trying to bring it back to.

J.R. Rotchford:
I noticed.

Anthony Carrao:
I noticed. Well, I mean, you stuttered through that last article and I thought you were going to say under adult supervision. And I was like, no, that would fit. That's probably what Social Security needs is adult supervision. I think if any of these people could just be adults and fix a problem instead of pawning it off on whoever gets elected next, they cannot.

J.R. Rotchford:
And speaking of whoever gets elected next, we've been tracking for years. I know we brought it up last year. Let's bring it up one more time. You know, there's another bipartisan pair of House lawmakers that are re endorsing a bill that will ban members of Congress and some of their family from trading individual stocks while they are in office. Do we? It's so obvious, but it doesn't seem to ever go through, you know, this one third.

Anthony Carrao:
Time they brought it up, right?

J.R. Rotchford:
Oh, at least, you know, that's formally and officially members of Congress, through our votes, through our actions, have the ability to move markets in a joint appearance, they said here as a result. Of that reality, members of Congress shouldn't be able to buy or sell individual stocks. You know what's funny about all this? The rich are getting richer. The poor are hovering in. The middle class are shrinking. And these people are so out of touch. It's it's crazy. You know, everything that can keeps being kicked. The can for Social Security is being kicked the can for these legislators to stop trading. It's being kicked sooner or later when things start changing, you know, people are going to get upset.

Anthony Carrao:
Think about this, too, is they're not saying that they can't buy into the stock market. They're saying they can't buy individual stocks when they're controlling regulations that could affect stock prices. All they're saying is you have to buy mutual funds, ETFs. You have to buy them as a whole, as you can buy certain sectors. That's what individuals if you're listening to this show, the odds are you're not purchasing individual stocks because they're expensive. You need to be able to diversify. Most people can't afford to diversify with individual stocks so that buy ETFs, mutual funds. So all these bills, all they're saying is that these Congress people would have to invest essentially the exact same way that middle America is. Because when Amazon was 2000 something a share, Tesla's 1000 something, who can afford that? But you can buy a $50, $100 ETF or mutual fund and then have a piece of that. So it's not cutting out completely. It's just saying, all right, you can't buy a bunch of Tesla right before you know that you're going to approve tax cuts for them.

J.R. Rotchford:
But they go in, they go in with money. You have to have a lot of money for add adds and to get in and then they come out multimillionaires. And this is the way they do it. Mutual funds will never do it. But with all that happy news, let's take another break. We'll come back and we'll find something else to get all upset about. So reach out to us. 6235230444. Or email us team at AnotherMoneyShow.com. Thanks for joining.

Producer:
Us. You're listening to Another Money Show To learn more and contact JR and Anthony visit AnotherMoneyShow.com. Never leave your side.

Producer:
It has made me loathe to. You're listening to another Money show.

J.R. Rotchford:
Welcome back to Another Money Show. Thank you so much for being with us. So today, we're a little. We're off our game today. It seems like we're both a little bit tired and sluggish. You know, I had all these great articles to cover and I'm just I'm kind of joking. So let's talk about something a little more exciting.

Anthony Carrao:
We start off this section.

J.R. Rotchford:
Good job. Really.

Anthony Carrao:
Really brave. Bring in the enthusiasm.

J.R. Rotchford:
Yeah, but I need something to get you going because you, I, you know, we feed off of each other. Have you noticed that? Like, when you're tired of, you're.

Anthony Carrao:
Always mad at you?

J.R. Rotchford:
Well, there's that.

Anthony Carrao:
Is this a what kind of relationship is this? Is this a marriage?

J.R. Rotchford:
What, are we going to bed angry, Anthony? So one last thing that I did have on my plate to talk about, and then we're going to get into something a little more fun. So, you know, we're about to hit the debt ceiling again, right? Geez. You know. Yeah. Don't you think sooner or later the debt ceiling is the very best thing that could happen?

Anthony Carrao:
I mean, is it really a ceiling if it keeps getting raised? I mean, is it because I'm pretty sure I could get on a ladder and I'm not getting past my ceiling right now in this recording studio?

J.R. Rotchford:
So you have a debt ceiling, So the country's debt ceiling. Well, and, you know, we brought up a couple of weeks ago, Janet Yellen said watch out around the 19th of January, we're going to hit the debt ceiling. It's just comical to me. I mean, it's just funny because, no, we're not going to shut down. We've done it in the past. I mean, they actually furloughed park rangers. You know, the problem is we talked about these these government officials and their insider trading and there are individual stock picking. You know what? You know who got hurt when we really did shut down the government for a short time. Park rangers, do you realize active duty military were not given paychecks for a short period of time? You know who probably did get their paycheck? The politicians. I'm just guessing. I don't know. I wasn't there. I'm not a politician.

Anthony Carrao:
But our military is on food stamps now, too. So we've obviously made a lot of progress since the last.

J.R. Rotchford:
Yeah. Don't get me down that road. Don't get me talking about Wounded Warrior and Dave and all those again, because I'll do it. I mean, I you know, yesterday I'm hearing on the news a little bit about veterans suicide, you know, part of the veterans suicide. And I know I'm not trying to oversimplify. I do understand that there's people wrestling with things, there's PTSD, there's homelessness. You know, what's not talked about financial. There's a whole bunch of veterans that they don't have money that's there right there in the lower middle class. In a lot of cases, it's it's frustrating. You know, everything's going up, Inflation's a problem. And you take people in the middle class and they're hurt. They're hurting. So I would love to know, out of the average 22 veterans a day that commit suicide, I'd like to know what and I'll never find this out. I'd like to know what percentage of those people had they were in dire financial straits. I'll bet that feeds into it for sure. You know what I got yesterday? Speaking of things going up around us, I got my apps, Bill, for both the office and my home. So. And I'm just I set this aside to look at it later. The apps proposes another rate hike. Did you hear about that, Anthony? Another rate hike at apps residential average 22.79%. Holy crap. Yes. Then it breaks it down. General Services extra small and small. 23.75. Medium 23.58. Go down to schools 24 houses of worship 23 Outdoor living. What is oh outdoor lighting? What the heck is that? Is that like municipality 17.67 for a total retail average of 22.87% hike. So yeah, why we're worried about eggs being $10 a carton if you can find them. Is this really a good time to be raising my utilities, which is something that helps me keep warm, keep the lights on? You know, we're going to ban gas stoves. What what the hell is going on in this country, man?

Anthony Carrao:
What was the last time we heard about the energy crisis? Two over in Europe? It's been a while.

J.R. Rotchford:
Yeah, well, and luckily, they've had a more mild winter than not, you know. Are we out of the woods over there? I don't know. Yeah. Again, our attention span. Who knows? So it's, you know, a lot of bad news. There's a lot of bad news out there. You know, we haven't touched.

Anthony Carrao:
On such a bummer about it. We're going to have good news for you because, again, you can't control these things. But there are. Solutions for your personal situations. So we're going on break. In the meantime, check out Another Money Show. Wherever you listen to podcasts, reach out to us directly at team at Another Money Show. Com and we will be right back.

Producer:
Thanks for listening to another Money show. If you like what you're hearing, be sure to leave us a rating and subscribe to the show wherever you listen to podcasts. 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 6235230444. That's 6235230444. This is Another Money Show. Except this one's different. This one will actually keep you awake.

Anthony Carrao:
Welcome back to Another Money Show back from a commercial break. And over the weekend, we saw a very interesting article that I always I always get a kick out of when I see this, because a lot of people think, you know, if I just had more money, I would fix all my financial problems and things will be better. I was like, Well, it really doesn't matter how much money you have because people are bad with money. It doesn't matter if you're poor, middle class, rich having, you know, you're either good with your money or you are not. So there's an article this week about the Vegas Golden Knights gold tender who is filing for bankruptcy right now, citing up to 50 million in debt to dozens of creditors. So not just one or two, but quite a few. This guy signed a five year, $25 Million contract with the Knights in 2020, yet somehow has racked up $50 million in debt. So it's I mean, one that's impressive and the article cites a bunch of it sounds like him and his dad went on a bunch of business ventures. I was like. And if I could have like $2 million, you know, just dropped in my lap, I feel like I could stretch that for the rest of my life and be fine. But 25 million, I could definitely make last me four forever and retire and be happy and maybe start some business ventures. But what do we talk about on this show? Set a foundation. If you're going to take risks, you know, don't do it with your livelihood. You know, set a base, set a foundation, said it so you can take risks and it's not going to affect your day to day. Apparently, this guy did not take that advice, did he?

J.R. Rotchford:
Well, first of all, he's probably young. You know, if you're a goalie, you're probably young. You know, people need to help you. You get involved with financial advisors with that kind of wealth. And, you know, hopefully they're doing what's in your best interest. You know, I know somehow it's under the radar. But didn't Tom Brady the greatest of all time until last weekend? Didn't Tom Brady actually lose a you know what ton of money. In fact, I can't wait to hear exactly what he lost. Yeah, I.

Anthony Carrao:
Haven't heard the numbers yet, but yeah, it just blows me away. So if you're listening to this show and you're like, oh, man, if I just had more money, I'd be in a better situation. That's not necessarily true, but put you in a better situation is setting up a financial foundation. So, I mean, he's not the only one that's done this. Ellen Iverson, very, very famous NBA star, earns probably about 200 million through his career, about 155 from regular salary. You get another 50 from endorsements. In December of 2012, Iverson told the court that his monthly expenses were 60. I'm sorry that his income was 62,000 a month, which is more than what people make in a year. But his expenses were over 300,000 and he had to file from bankruptcy. So this isn't unique. However, he was saved, and I think it was 2001 in that time frame. What was it?

J.R. Rotchford:
Well, who's got a better story in life? Allen Iverson or you? Anthony Corio I would say he did the right things. You know, my father had a client whose son won the lottery in Arizona. I don't know what it was pick or whatever. I know it was over $1,000,000. This was I heard the story when I got into the office. So it was before my time. So the sun hits the lottery and the parents are trying to get him to go to my father. The son declines. The son's like, I know what I'm doing. He was young and again, I'm giving you fuzzy details. He was in his twenties, so he won over $1,000,000. What it was after taxes was probably 20,000, but he went over $1,000,000 and he went through it. My father's favorite part of that, he bought a yellow Corvette. So talk about look at me. We he got a yellow Corvette. So anyway, the parents, you know, it was a very touchy subject. They they were very upset. My father was upset that he couldn't help. So the young man who went through the lottery, he kept playing. I mean, he never stopped playing the lottery. Probably more. He wins it again. He wins it for the second time, over $1,000,000. Guess what he doesn't do? He does not sit down with my father.

J.R. Rotchford:
So I know it happens when you talk about, you know, if you have more money, you have less problems. It's just different problems. You know, we know we always live to what we make. You know, if you make 20,000 a year, you're you're living modestly. If you make 200,000 a year, you're living good. You live in a bigger house, you drive a bigger car, you eat at fancier restaurants. We live to what we make. You hand these sports people, you know, for a short period of time, years or a decade, or in Tom Brady's case, like ten or 12 decades. You hand these people tons of money. It's I mean, how can you even deal with that? You know what I mean? It's it's just a bigger sum of money that you can mess up. And by the way, this this goalie for the article you sent me this this cracks me up. So his debts included missed payments for a collection of rare snakes. It's hard for me to read this without laughing. He missed payments for rare snakes he purchased for $1.2 million in 2017, according to the bankruptcy filing. He keeps his snakes in a farm in Plano, Missouri.

Anthony Carrao:
Missouri is making payments on snakes.

J.R. Rotchford:
Well, and plus, how did he get them? From where? Everybody in Missouri. Uh oh. Where there snakes on a plane. That sounds like a good premise for a movie. I mean.

Anthony Carrao:
2 million in snakes.

J.R. Rotchford:
Snake.

Anthony Carrao:
That's obnoxious.

J.R. Rotchford:
Yes, but when the baylen gets here and the banks close the doors and we have a digital currency and all that stuff, you know, it's going to be very valuable. Snakes. How am I going to get your gold meat.

Anthony Carrao:
Snakeskin boots.

J.R. Rotchford:
Snakes to use as weapons? To get your gold away from you.

Anthony Carrao:
So, cheese. Oh, and the irisin. I mean, the the point we wanted to make is that he did end up finding another sponsorship down the road, but they set him up with a pension. They set him up with an annuity, a constant income stream, so that he could not screw up. You know, I mean, you can definitely screw up with all of your hard assets and lose a lot of money, but it makes it a lot easier if you do have stuff coming in. Babe Ruth, Right. The greatest baseball player of all time, was in a similar situation, and his manager noticed that he was going through a ton of money, so he introduced him to an insurance broker through a company that looks like they're still around today. But from 1923 to 29, Babe Ruth contributed more than half of his salary annually, purchasing between about 35,050 thousand worth of annuities each year. And this is right before the Great Depression hit, which, you know, maybe it could happen again someday. So when the country was hit with this and he had to retire in the thirties, Babe Ruth retired and it was reported that he received an income of 17,500 a year, which would be about 290,000 in today's money.

Anthony Carrao:
Right, because of inflation. And he said he's famous for making this statement. I may take risks in life, but I will never risk my money. I use annuities and I never have to worry about my money. That's all we're trying to teach people is pay down debt, don't owe anything to anybody, and concentrate on an income stream because Social Security may not be there for you. And if you have to live off your assets and all of a sudden we do see a dip in the market, that's a big difference. Having $1,000,000 to live off of than having $500,000 to live off of. Or if you don't even start with a million. If you have 500,000 in retirement and cuts cut in half to 250, you know, are you getting a part time job? How do you continue to live that same lifestyle with half that money if it's gone overnight, you set up income streams.

J.R. Rotchford:
Yep. So simple. And you know, there's a lot of famous people. Beethoven was one, you know, Benjamin Franklin. There's a lot of people in history that have have made annuities their base, and it's worked out well. There's some people that have made annuities their base. I would say for I don't want to say nefarious, but for other purposes, you know, annuities, they avoid probate. So if you don't have a will or a trust, but you have a named beneficiary on your annuity that passes to your beneficiaries without probate, you know what else there they fight against lawsuits. Do you remember Tyco? Remember the company Tyco, the executives name, I think was Dennis Kozlowski. He had like some ridiculous costing shower curtain and umbrella stand and all these funny things. You know why he kept a bunch of money that he had after he got out of prison because he had annuities. They were not subject to creditors. They were not subject to lawsuits. You know who else? O.j. Simpson. O.j. Simpson Who? Controversial figure. I know, because you can't run through the airport like that. So rightfully so. He should be scrutinized. But O.J. Simpson had a bunch of annuities. So like in his Vegas days when he was taking sports memorabilia, you could sue him for his bank account, but you couldn't take his annuity money. So genius.

Anthony Carrao:
So is that how we're are we moving the shift of this office to. Well, we wanted to help individuals retire, but now if you are criminal and you and you need to safeguard your money for if you eventually get caught and go to prison, that is what we're now here for.

J.R. Rotchford:
Hey, criminals are people, too. You know, we always say you don't have to have minimums to see us. We don't have the pressures and the quotas of these big people. You know, you don't have to call in the next half an hour, call whenever you need us. You know, if you're a criminal, give us a call.

Anthony Carrao:
Call from a jail line. Let us be your one phone call.

J.R. Rotchford:
If you have one phone call, call Anthony. Don't don't call your attorney. So and I don't know if you saw it, but Jim did put up on the screen for us the name of Ponzi. It is Charles. You are correct.

Anthony Carrao:
So speaking of con artists. Yeah, if only Charles Ponzi had bought a bunch of annuities, think of how much better shape he would have been in.

J.R. Rotchford:
And back to Tom Brady, the once greatest of all time. So Tom Brady, he lost a bunch of money at first, you know, where he didn't lose a bunch of money. I know it is. I'm speculating. I don't know if he has any notice. He was married to a supermodel. So that's kind of like having an annuity. Oh, wait, she's gone to he's having a rough year. Last weekend was tough for my poor Tom Brady.

Anthony Carrao:
It's saying that Brady owned 1.1 million shares of FDX, which was valued about 45 million. So I. That's about 45 million, which is almost similar to what this goalie lost or his being sued over.

J.R. Rotchford:
And the goalie probably is a lot more hurt. The goalie signed a five year, $25 million contract with the Knights in 2020. So he's a little newer. I'll bet Tom socked away some money over the years. You hope.

Anthony Carrao:
So. But think of Iverson. I mean, the guy made a fortune, and the only thing he ever really had to show for it was the annuity that somebody else put him in, because otherwise his money's gone.

J.R. Rotchford:
No, that's true. And it's funny because small scale like, you know, I mean, what we do day in, day out, it's small scale. We're helping blue collar America. You know, we have different levels. We have people on a true fixed income. We have people that have pretty good wealth. And it's funny, the one underlying thread, especially for you safety, if you have just throwing it out there, an example, if you have half of your money safeguarded, you can take extra risk. On the other half, you can look for opportunities, you can buy snakes, there's things you can do once you have a good foundation. And you know what? It's funny because whenever we talk about annuities, you still get the people that are like, Oh, annuities are evil and they're bad. All the people that don't sell annuities told me not to buy an annuity. You know, our we have annuities that act like CD's. We have annuities that act like pensions. We have annuities that act like a short term emergency fund. We have different ways to cover annuities for people.

Anthony Carrao:
And not to mention, too, we can sell you stocks and bonds, we can sell you individual stocks, we can do mutual funds, we can do ETFs. And I'm totally fine with that being a part of your financial picture, but you have to set up that base first. You know, you can't afford to drop 20, 30, 40, 50% of your funds safeguard, set a base, then we can take risks with the rest. Or I mean, we've got stuff right now that's, you know, their caps are over 10%, you know, and that's insane to be able to make up to 10% without risk. And of course, those are subject to change. But we're in such a high interest rate environment right now. Now is such a great time for the fixed indexed annuities. But anyways, that's it for today's show. If you like what you heard, you have questions on any of the topics today or want to sit down with us to review your personal financial situation. You can reach us at team at another Money show. Find us on the web at another Money show. And you can also listen to past episodes, ones that are much better than the ones J.R. screwed up today. Another money show on Spotify, Google Podcasts, Apple, iTunes, all those places. If you have questions about your financial situation, there are no minimums. There's no cost for appointments. There's nothing to lose by getting a second opinion. And until then, we will see you 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 AnotherMoneyShow.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.

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