APPROVED_AMS_FullShow_061722mp3.mp3: Audio automatically transcribed by Sonix
Disclaimer: 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 Correa and J.R. Rotchford.
J.R. Rotchford: Good afternoon and welcome to Another Money Show. Thank you so much for taking time out of your weekend to join us. As always, we greatly appreciate it. So Anthony is not here today, but you do have me, J.R. Rotchford, and the one and only Sam Davis. So I am with adult supervision. I apologize for the bad word I said last week, so that won't happen again. I only said that because Anthony was with me, so today's show should be a little bit more family friendly. So Anthony is in Costa Rica, so and you know, I reached out to Jamie Diamond. Unfortunately, he didn't commit to being my co-host this week. You know, I guess you got other stuff to do, A.J., too busy to be on the show. So we'll move on without him as usual. Yeah, I'm sure you know this, but our focus is protection and growth in that order when we help people with their money. We're always aware of growing their money. We're aware of interest rates. We're aware of of making people living. But the market volatility that you're seeing lately is truly scary. You know, people that if you're a little bit older and you watch the tech bubble, if you remember Black Friday, you know, if you look at plane hitting a building in 2001, if you look at 2008, this is a very uncertain time. So that's why we do what we do.
J.R. Rotchford: We're trying to really keep people calm, make sure make sure people understand that you can't put your head in the sand. I mean, there's a lot of people in 2007, the market started going down. You know, we got to a lot of our people and we got them to go a little safer. We dollar cost average out of the markets. Well, then when things got pretty bad, the people that didn't go safer, we reached back to them and we were like, you know, things are down 15, 20, 25%. You know, we don't know how this is going to end. We don't know if it's going to get worse. We still think we have time to react. And the basic idea, people are like, you feel dumb, you don't want to lock in a loss. And you've got all these financial advisors coming out here saying, Oh, it's only a paper loss, you've only lost a few sold. You know, part of the problem with that is how bad can things get? I mean, if you're down 20%, could you be down 40%? And obviously in 2008, that did happen. So we're at that point, again, you know, the advisors that are always saying it's only a paper loss, you know, by the dips part of my problem. Where's the other side of that coin? When we had a decade run up in the market, where were the advisors shouting to the rooftops? You know, it's only a paper gain.
J.R. Rotchford: Let's take some money off the table and pay down debt, buy hard assets. You know, let's let's do other things with that money and make it a real gain. You know, they weren't doing that. You know, the people that are out there saying buy the dips, you know, why aren't you saying to me, you know, sell the peaks? You know, I mean, this this last week has been brutal. So we want to hit that up. One of the things that we're looking to do for people, you know, a lot of times people don't know what they have. They don't know, you know, what their risk is. They don't know what their fees are or they don't know they really don't know what they have. And next to your health, I would say your money is the second most important thing. So let somebody be a second opinion. Start researching. Just don't keep your head in the sand. You know, when you look at your old statements, if you don't understand them, come to us, we'll help you. We're not going to charge you to do it. You know, let us be a second opinion on this stuff. We see tons of old 401ks just sitting there. So I kind of want to talk about that a little bit in this first segment.
J.R. Rotchford: If you have an old 401k, you know, old employer, you switch jobs or you have five or 401(k)s, you have three main choices. One, you can leave it there. You know, you just let it sit. Unless your old employer says you have to move it, you can let it sit there. The thing is, you still have to watch it because I promise you, people are not calling you trying to help you with your allocations. You're still being charged. You know, they don't bill you. So you're like, well, no, it's free. Well, no, it's not free. I mean, they work on a spread. So even if if the volatility like we have now is taking place and you're down 20%, you're really down 22%, 23%, whatever, when you look at your fees and charges. So one of the one of the things, how do you find out your fees and charges? One, come to us, sit at our table, we're going to take a pad of paper and a pen and a speakerphone so you can hear what we hear. You prove that it's okay to. Talk to us and we know how to ask what are the 12 v one fees? If you have a variable annuity, what is your annual fee? What is your mortality expense charge? What are your sub account fees? Is there a fee to rebalance? Do I have an income rider fee? We can help you figure all that out.
J.R. Rotchford: So with your own 401k, you can leave it sit. But I would highly recommend you don't just ignore it because it is probably shrinking as we speak. Your second main option if you're at a new employer, you can take your old 401k or your 504 one ks and you can put them into your new 401k. The the pro to that is consolidation. Now you have one statement instead of however many. The second thing is when you have a401k, generally there there are loan provisions. So when we look at the gas prices and the inflation, people are panicking. If you need money, I mean, that is your retirement money. So that should be the last place you look. But if you need to, at least you can borrow against the 401k. So that's a pro the the con to moving your old 401k to your current one k, you probably only have a limited amount of choices. So if they have 30 different funds, that's what you're stuck with. If it's outside of your current firm. K, you should have more choices. So when you and the other thing about going into new form K, you're basically if you leave, quit, get fired from that job. Here you are again with an old 401k so your third main choice, you can move your old 401k or 401(k)s to an IRA.
J.R. Rotchford: And what that means, you're going from a government sponsored plan, a group plan to an individual retirement account, and you're going to have more control. So you lose those loan provisions, but you have more control. You can put it into a precious metals IRA, you can put it into a self-directed IRA, you can put it into insurance companies. You have choices. So we're a big fan of looking at these three options. Oh, you know what? You do have a fourth option. You can cash it out. And I would be especially if you're under 59 and a half, I would be very hesitant to look at that option because, I mean, you know, you're looking at taxes, you're looking at 10% penalty. So it's a very expensive way to cover your gas bill. So those are the main three options with the old form. Okay. My my biggest priority for people is look at it, know what you have, get help. You know, I mean, usually be careful if you just have a brother who's cousin's friend said that they made a bunch of money on Bitcoin. Speaking of Bitcoin, let me get off the track for a second. Are you watching, Sam? Are you watching the cryptocurrencies these last few weeks?
Sam Davis: Oh, yeah, they've been falling. And I've also noticed on television, I was watching the NBA finals last night and I noticed a couple of different crypto commercials. It's interesting how they are getting very aggressive with their advertising during this volatile time. But yeah, cryptos are in the tank right now for sure.
J.R. Rotchford: Well, and how does that end? I mean, are they going to come back? Is this a normal cycle? You know, I you know, I'm always looking for news. I'm always looking for articles. I took one off yesterday. Today is Tuesday, the 14th of June. I took one off of Forbes yesterday on the 13th, and the title of it was Crypto Bank Suddenly Halts Withdrawals. Will Others Follow Suit? And so I'll read this quick little paragraph to you. I'll just read the top part of this. Crypto lender Celsius announced Sunday evening a suspension of withdrawals and transfers as a result of ongoing market turbulence. Think about this for a second. The whole thing about cryptocurrencies, it's out of the government's reach, which obviously since the government is seizing accounts, taking money out because of any kind of, you know, nefarious activity now, now the people that hold your cryptos can put up the gates and fees and say you're not moving it. So this is very scary. It says here, what has the bearings of a bank run that scares me of a bank run on its assets, as well as the firm's response to safeguard remaining assets. Meanwhile, crypto exchange Binance aggravated market sentiment by announcing that it had temporarily paused certain Bitcoin withdrawals as well. Furthermore, it appears that withdrawals in Ethereum and Major Stablecoin are also partially impacted.
J.R. Rotchford: However, it is unconfirmed whether those disruptions are being caused by the current market panic. What else would it be? I mean, if they equate it to a bank run, I mean, if we have a run on these cryptocurrencies, we could see the emperor has no clothes. I mean, you don't really own anything. You own lines and zeros. So if people start panicking and pulling the money out, this could crash. So you've got gas prices at all time high. I know that the nationwide average ran over $5 this past week. You've got a stock market that is very much reminding people of 2008 and previous corrections. You know, where else do you go? We've been telling people, be very careful with bonds. You know, usually as you want to go safer, you do less equities, more bonds. With interest rates rising, we're cautioning people to really look at all this stuff. So a lot of people thought, you know, I'm going to get into the cryptocurrency, be out of all these normal channels, and now this is happening. You know, my whole thing, how does it end? Could this get worse? Is it just a blip? I don't know. So here nor there. Part of why we talk about what we talk about. We want people prepared, not scared.
J.R. Rotchford: We say that pretty much every week. You know, we want education over sales. You know, we run our office a certain way. This past week, I read more about, you know, everything I've been talking to you. I read more about food shortages. Now, it's yesterday I heard that Smithfield Farms is closing a huge plant in California. You know, people are like, well, I don't eat pork. Yeah, I understand that. But if there's a whole bunch of people that do and you shut down a food source for them, they're going to be looking for an alternative food source. Everything leads to something else. So I really look at it like, you know, I'm really the next six months, you know, Anthony always says, well, you think on January 1st, 2023, you know, office and everything's gonna be okay. Personally, I do not. I think when you look at the midterms, when you look at everything on the table, I think we've got a long road ahead of us until we get back to somewhat normal. But I do think, you know, the the Roe versus Wade that that is supposed to come out here any time. You know, obviously, the Second Amendment is under fire, pardon the pun. You know, the gun debate is heating up. You know, are all these distractions, are they all going to polarize us and hit at once? I don't know.
J.R. Rotchford: But I would you know, my normal advice when you're not sure what to do, don't do anything, you know, I mean, right now, I would get under the radar and kind of wait and see on some of this stuff. The thing is, you know, when you want to be proactive over reactive, you have to get out in front of it. So and you know, when I look at the financial markets, which that's always pillar number one, I still think we have time. I still think this volatility is bad. I still think we can catch you know, I don't think it's over. I still think we can catch them. So and let us help you, as always. We're here for you, Anthony and I. Kiana, we want to meet you. We want to help you. We want to answer your questions. So reach out to us, you know, go to our website, email us, email us at team at another Money Show. Com. And we're going to take a break. I know that one kind of fast, but we're going to take a break, come back and we'll get into some more problems, solutions, whatever we can think of. Thank you again for joining us.
Producer: If I had $1,000,000.
Producer: If I had $1,000,000. You're listening to another Money Show.
J.R. Rotchford: Welcome back again. We appreciate you being here on a Saturday. Thank you so much for joining us. So Anthony is out of town. I think I yeah. Second time. I'm not trying to count, but this is the second show that I've flown solo just me in and the one and only Sam Davis. So our whole thing, when we talk about being proactive over reactive, you know, we really we don't want you to be caught off guard. I think at this point there's nobody left that doesn't see the volatility. They don't see the inflation. They you know, I mean, I think everybody is seeing that things are uncertain at best. You know, Sam, I mean, you're you're in Georgia. I don't think that this is regional to Arizona. I think nationwide people are starting to understand the uncertainty. Is there. What say you? What is it like in Georgia?
Sam Davis: Yeah, I mean, this is certainly a national issue. I mean, people are invested in these markets that are underperforming this year, to say the least. Gas prices are affecting everybody everywhere. You know, Georgia is one of the states that are less affected by gas prices. But, you know, 453 is what I paid over the weekend. That's still a lot more expensive than what I was paying in the months past and what we would have expected the prices to be. It's still a lot more expensive. But, you know, there's a lot of stuff going on with the markets. It's an election year. There's a lot of uncertainty. We understand that the news doesn't make us feel any better. And I know that the instinct sometimes or the easiest thing to do is is put your head in the metaphorical sand on some of these issues. And maybe if I just ignore all of these problems, that they'll just go away. Maybe we're all overreacting and and maybe this is not as bad as we think. But I think given the current climate, if you're putting your head in the. And you may as well dig yourself a bigger hole and get your whole body in there because now's the time. Now's the time to have a plan.
J.R. Rotchford: I think that is one of the best things I've ever heard. Don't just put your head in the sand. Put your whole body in the sand, because things things are uncertain. I went to a dentist when I was a child. I have no idea how I remember this. But you just brought up a childhood memory. He's he had a sticker that he gave out that said something about your teeth, something about how important your teeth are. Don't ignore them or they'll just go away. If some of the effect of your teeth go away, just ignore them.
Sam Davis: My dad used to say, only brush the ones you want to keep.
J.R. Rotchford: That's hilarious. And your dad is a dentist, right?
Sam Davis: No, but we we. He taught me good oral hygiene. I actually went to the dentist yesterday, so it must have stuck with me.
J.R. Rotchford: All right. So today's show, the rest of it is going to be on dental hygiene, if that's okay. It does tie in with your finances, you know, because if you have to get a crown later, that's very expensive. So you brought up gas prices. Obviously, that's on everybody's mind. And what did you say? 453 I just paid 568 at the Q.T. There's a cute I don't know if you have cute there.
Sam Davis: Oh, yeah. Yeah. I love I love quick trip. And if I could snap my fingers and make every gas station one gas station, I would probably go with cute because I like that experience the bus the most Wawa is pretty good as well. I lived in Florida for a while. Wawa is also good, but yeah, for 53 I got a bit of a deal with. I think I have savings based off of where I shop or whatever, some rewards card and it saved me $0.03 per gallon. So that's yeah, you know, not doing so bad especially with my car gets about 40 miles a gallon, you know, driving around bumper to bumper traffic, maybe it's more like 35 miles a gallon here in Atlanta. But but yeah, the prices are up there. And how high do they have to go before people seriously start changing their habits and patterns to cope with this new problem?
J.R. Rotchford: I think it's we talked about that a couple of weeks ago. There's a term called demand destruction. And basically it means you get to a certain point and everything is going to kind of give I don't know what it is. I don't know if it's seven bucks a gallon, maybe it's ten. You know, the vignette we played for Matt McClure a couple of weeks ago when they talked about the pent up demand, you know, during the virus shutdown, a lot of people didn't get to go on vacation, they didn't get to travel, they didn't get to move freely about the country. And Southwest would say, oh, speaking of which, we need to start getting sponsors. So I just plugged southwest. You plugged cute. Pretty hardcore, I think, and oh wow, I've never heard of that. But I'm moving to Florida after the show just started. Great guests at Wah Wah. I want my receipt to say wah wah. That is awesome. So yeah. So demand destruction. Basically when we get to a certain place, it's going to affect people kind of as a blanket like all at once. People are going to start going, Oh, wow, this is cost prohibitive. You know, I always think when it gets to Facebook, when the trend on Facebook is, you know, oh, don't buy gas on Thursday, well, that does nothing when the trend on Facebook is, you know, let's let's you know, this is crazy and people start saying this is crazy and they start thinking this is hurting my discretionary income.
J.R. Rotchford: This this is too much. I think things will change. I think things will have to change. We're just not there yet. You know, one of the things that I always talk about with inflation, I am less worried about inflation than most people. I'm more worried that inflation can lead to either a shortages or be hyperinflation. I mean, inflation if you have nothing. We have been a kind society. We've been helping with rent, with food, with all these different things Internet, cable, if you are wealthy, if you have a lot of money, inflation, at least at these levels, it's not affecting you at all. You're doing what you want to do. You're buying what you want to buy. You know, once again, it's always the middle class that gets shrunk. They get affected. And I look at it like if the inflation keeps going and we get to hyperinflation, people are going to panic. Well, what do people do when they panic? They run out and they hurry up and buy more. And if we start having higher inflation, higher gas prices, you know, inflation is climbing and people start buying more, that could lead to shortages. That's where I get concerned. You know, we're on an on demand society. You know, they're not big warehouses like there was in the seventies. And, you know, I mean, now it's all about the bottom line and profit. And if the shelves are bare for a day or two, we could have real problems.
Sam Davis: Yeah. And one thing, you know, on the gas topic, J.R., that's really concerning me. We are about to tip over and I'm sure in some of the inner city gas stations that already has on the West Coast in California, $7 a gallon for diesel. We talked about diesel gasoline here on this show a couple of weeks ago. You know, all of the goods and services that we take advantage of, at least the majority of them, you know, those are coming to us by way of diesel trucks. And I know that you mentioned that there is a shortage of some diesel engine treatment fluid. Yeah, something going on as well. But I mean, you know, all those fun packages that you're getting from Amazon or Hellofresh or whatever, you know, those are coming to you on diesel trucks and $7 a gallon. You know, they're going to have to pass those costs on to the consumer. And so I think this is just going to continue to kind of stoke the flames of inflation moving forward.
J.R. Rotchford: Yep, for sure. And Hellofresh, I mean, that's a double whammy because to get it to you is going to cost more money. They're going to have to raise the price of the food within the hellofresh box. I've got a friend named Steve who orders stuff from Hello Kitty. I don't know what that is, but it's. Yeah. So why don't we do this? I think we're nearing a break, so let's take the break. We're going to come back. You know, today's been good, kind of uplifting, not too doom and gloomy. We're saying stuff that people already know. So let's come back the next couple of segments. Let's do some solutions. Let's let's talk a little further about what's going on and what to do about it. So, as always, you can find us at another money show or you can go ahead and email us at team at another Money Show dot com. We would love to have your questions. We would love to sit down with you. We want to help people, one person, one family, one couple at a time. So thanks for joining us. And we'll be right back.
Producer: Another weekend, another money show visit, another Money Show 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. You're listening to another Money Show. No, that's the name of the show. Another Money Show. And now another money making round with J.R. and Anthony.
J.R. Rotchford: Welcome back. Thank you again for being with us. So let's talk for a couple seconds. Not necessarily about problems, but just things to be aware of. And then we want to end today's show. We want to really talk about what you should be doing. We want to talk about solutions. So one more thing that I want to hit, because if you are reading, you know, you don't see any of this stuff on the nightly news. It's crazy how much information I can find when I just start reading, you know, versus watching the TV. So I guess that's one of my pieces of advice. Turn off that TV. I mean, a lot of what you see on the TV is really junk, you know? I mean, at least there's Netflix and you can binge watch Ozark or something that's entertaining. So the digital currency, you know, we've been shouting the alarm for quite a while about this, watching other countries and, you know, watching this country. The credit unions and banks got together. This was on May 31st. I want to say they got together and they wrote a letter to the to the government basically saying they have major concerns about us going to a digital currency. And and it's funny because well, of course they do. They'll be pinched out. I mean, you know, and the banks and credit unions getting together, part of why that's impactful, the credit unions are they're more labor. You know, they're unions. They're affinity groups. And the banks, they're retail, they're just strict. Give me your money and we will use it however we see fit. So for those two to get together raises an eyebrow to me.
J.R. Rotchford: And basically what they're saying is that, you know, it just won't work. Oh, and there also, if you actually read the letter they drafted, they're saying that we're we're digital now. I mean, we are primarily a cashless society. You do online bill pay online banking. You know, you hold your phone up to a vending machine. A little green check comes up and a product pops out. You know, there was a coin shortage. Whatever happened to that, by the way? What happened to the Bitcoin shortage? You know, you know, we're kind of digital now. So the digital, you know, if we go to a Fed coin, I mean, the real reason behind it, we've got 30 trillion in debt as a country. The stock market's failing. We need control of the citizenry. I hate to say it that way, but, you know, all of a sudden when you when you look at the big picture, you know, the government control is that's why this is coming. The thing is, is it coming? You know, people are still trying to keep their head in the sand on that. You know, we've talked about balan's. If if there's a bank holiday, if they close the doors of your bank and they say don't panic, but you can only have $60 a day, I don't care if I have 600 or 6 million in the bank, I'm going to panic. And this whole digital currency, you know, when I have to turn in my cash and they give me what they deem is the equivalent in the crypto, in the crypto, in the digital currency.
J.R. Rotchford: What if I disagree? You know what if we go towards social scores? There's so much to research. So, oh, I like that. Sam put on the screen 80% of all US dollars in existence were printed. In the last 22 months. I've heard statistics like this. You know, this is crazy. I mean, you know, we're printing money like crazy where our dollar is being removed from the world reserve currency. We all know that the geopolitical tension is is ramping up. I mean, everything's coming at once. So my whole thing, again, be proactive, not reactive. If you're not sure how much to keep in cash and you're safe, you know, and we do talk about fire, flood, burglary, inflation, loss of interest. We talk about all that. If you're not sure how much to keep in the bank, talk to somebody you know. And obviously there's no right or wrong answer. Money is personal. You know, the reason we never give specific recommendations on this show in any way, shape or form? A, we don't know who's listening. So, you know, everybody is different with their money. And B, you know, we have to you know, we have to keep in check. You know, we have compliance. People listen to this. They want to make sure we don't say anything that's wrong or misleading, you know, so if you want to brainstorm with somebody, how much should I keep in cash? Meet with us, find out what's right for you. I mean, our whole thing is bettering your situation individually. So why don't we do this? How close, Sam, are we to a break? Should we wrap this up?
Sam Davis: And then we got about 90 seconds, so probably just enough time to let people know once they do get in touch with you through another money show or given you guys a call, what's it like?
J.R. Rotchford: That's awesome. We are going to be a second opinion. Any statements you want to go over? We're going to look at that. We're going to talk to you. We're going to help you figure out your risk tolerance. You know, I mean, I know what everybody wants, 10 to 20% return with no risk. And they had a decade where they pretty much got it. So everybody's a genius. Everybody, you know, you threw a dart at something, it went up. So we tailor make every single. Financial plan. We don't handle big group for one. We do individual business and we sit down. You know, if you have an old annuity, you've heard annuities are horrible. Let's look at it. If it's good for you, we're going to get to the bottom of that. If it's bad for you, we're going to get to the bottom of that. So meet with us. We'll see if we can better your situation with that. Let's take a break and we'll come back and log along.
Producer: 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. It's the.
J.R. Rotchford: Welcome back. Thanks for hanging in there with us. Thanks for taking time on our weekend. We appreciate it. So finishing up on the whole what to do about things in such and such an uncertain time. You know, when we started our show, we we really went heavy the first couple of weeks. You know, we talked to people about, you know, the uncertainty, growing legs and, you know, inflation and taxes and all this stuff. And we told people some of it is is real. I mean, it's hard to wrap your mind around. There was a show, I don't know, maybe ten years ago on TV called Doomsday Preppers. And this show was like, you know, the end of the world is coming. And people really believe that. I mean, people believed that politically, financially. I mean, this is it. And so this show comes out and it's it's really extreme. I mean, people emptying their pools, you know, they're swimming pools and making aquaponics. And, you know, they move out to the woods and build bunkers. And it was very extreme. It was entertaining. It was entertaining. And it really I mean, I thought about it and I was like, if things go that bad, you know, do I want to have my swimming pool filled with fish and floating things I can eat? Not really. I mean, if it gets that bad, we're all in the same boat. We got to figure it out. We got to fix it. So but you know, I've always thought that like a Boy Scout, I mean, you know, if you haven't, you don't need it.
J.R. Rotchford: So what? But if you need it and you you don't have it, you have a problem. So part of our first few shows, we talked about having cash at home. We talked about the pros and cons of precious metals. We went a little further and said, you may want to supplement your your food source. You know, we talk a lot about the tower garden. It's basically you can do gardening inside your home. And we we have a contact that sells these tower gardens. You know, we don't make any money if we refer somebody to her, but it's going to supplement. You know, if we do have shortages of food, it's going to help people where they can stay in their house and not die. So it's it is kind of serious. And even though the doomsday prepper seemed extreme to me, the people that are aren't aware of this and they're not putting any extra food away. I have to question that, too. You know, I mean, I think at this point you have to see that things could go south and they could get worse. So, you know, you have a guest bedroom and there's a bed in there under that bed. Put some cases of corn and peas and spinach and that stuff. And if you don't need it, you know, if we get through this next six months or a year and you haven't used it, you know, start rotating it in, obviously things are going to cost more. If you if you think you bought too much, give it to a food bank. You know, there's a ton of people that are you know, they don't have enough food.
J.R. Rotchford: So you can really do something good with it. So, you know, we talked we went even a little more extreme and we said that if you feel like things are going to go really bad, you know, you may have to barter one day. The people that are heavy in gold and silver, you know, you can't eat it. You know, part of my problem with going to heavy and precious metals, I think only about 20 to 25% of the country has a noticeable amount. So if you're thinking you're going to barter with it, you just knocked out 75 or 80% of the people you can you can trade with. So think differently. You know, a year and a half ago or whatever, the big currency to barter was hydroxychloroquine and ivermectin. You know, I mean, later this year, it really may be alcohol and tobacco. I don't care that you don't drink and don't smoke. You may want to put some of that under your guest bedroom bed and just have it in case. And again, if we get through things and you don't need it, give it away. I'm sure you know plenty of people that drink and smoke or throw it away. You know, if you feel morally like you shouldn't have in your house, throw it away or give it to me and Sam. Sam, I don't know if you smoke, but you're young. You can start now. I used to smoke years ago. I quit in 1999, but I'm not opposed to starting again.
Sam Davis: I'm not a smoker. But I just curiously looked up what the shelf life of cigarettes are. And it says that unopened cigarettes can stay fresh for as long as six months to a year and do not need to be unrefrigerated.
J.R. Rotchford: So now let me educate you as an ex smoker on what really happens. Let's say there's no cigarettes on the shelves or the stores are closed and I have a bunch of cartons of Marlboro Reds or whatever, the cheap knockoff with a little Indian on it under the bed. And I need food or I need medicine and you need smokes. You haven't had a smoke for two weeks and you were an average pack a day smoker. It doesn't matter how old those cigarettes are. When you see that pack, you are going to trade me, I promise you. Plus something else. When I quit, I did slip a few times and at one point I found a pack of cigarettes in the little sunglass holder in my Chevy Tahoe on the roof. And I took it out and I was in a bad mood and I had a beer or two, I guess it was. And so anyway, so I lit up the cigarette. That was probably I don't know how old it was, but it was really old. It was way more than the shelf life you just said. And what happens when a cigarette gets? Dale. It burns faster, it's rough, it's stronger. It's like heaven. When your next smoker, obviously the next day I felt like I should off myself because it was so horrible. But anyway, so cigarettes, I promise you, cigarettes and alcohol, they have no expiration date when somebody needs them.
J.R. Rotchford: And on a more positive note, what to do with the uncertainty. Do the stuff you always should have done. You know, if you've got money in the bank right now, pay down debt. You know, people are talking about, you know, there's blood in the streets. I need to buy stocks and bonds. I'm not sure, you know, I don't have a crystal ball. You know, I don't know when the bottom is going to be. Nobody does. But I can tell you, it seems like things could keep getting rougher. So I'm not sure if I'm personally ready to start dollar cost averaging into these markets yet. So I'm going to focus more on paying down debt. You know, we talk all the time about insurance companies. You know, if you want a pension, where's the best place to put it? You know, depending on your situation, perhaps that's an insurance company. You know, that is some of these things you know Anthony's huge on income over assets because assets you know they deplete you have to get by so you deplete the assets. Also looking at the market volatility, you could lose 20, 30, 40% of that asset and your income goes way down. If you have income that supplements, Social Security, pension, whatever, if you have rising income, that's huge. You know, and how do you get that? Generally, you get that from an old company or an insurance company.
J.R. Rotchford: You know, what is your Social Security? You put money in from all your paychecks during your working life and you get it back when you retire. That's an annuity. Sorry, kids. So with annuities, you know, I'm going to give you a real life example. We have a woman who bought a annuity. This was, boy, about 20 I'm 22, 23, I don't know, years ago. And it was a lifetime income stream. So she runs out of her money at about 85, 86, the money she put in, she had gotten back out by about 85, 86, and she lived longer. She's actually still with us. She's actually 100. I want to talk about that in a second. But anyway, so at about 85, 86, whatever it was, she ran out of money and she kept getting her. It was $9,500 a month. So I'm going to make the math easy for my little brain. She got about two grand a month and all of a sudden, once the money ran out the next year, she got a tax bill on the entire amount and that made her nervous. She was like, What? What is this? And we sat down, we went over it. I'm like, Well, what's going on is you were paying taxes before just on the dividends, in the interest on the growth. And now since you ran out of your money and this is 100% the insurance company's money, you're taxed on the whole amount.
J.R. Rotchford: And at first it was upsetting. She's like, Well, I don't pay taxes. I'm like, Well, you know, I can call the company and see if they'll switch it over to me. I'll pay taxes on 24 grand a year. And, you know, all kidding aside, I basically said to her, you know, we're going to have the taxes withheld automatically. We're going to make this comfortable. But you're you're getting free money now. So and that was around 15 years ago. She's still getting it. She's getting two grand a month on this money. So speaking of which, in my 25 years in this industry, I've been to 2/100 birthday parties. I just went to my second one this past Sunday and it's so cool. You know, we always hear about people living longer. You know, this was I mean, the first one I was pretty new in the industry. And I do remember, you know, thinking this might sound negative, but I was like, wow, you know, that's really old. You know, she's less mobile. It's like, I don't know if I ever want to get to 100. The woman whose birthday party went to this this past weekend, she's she's been very active. I mean, she's slowing down now, but she's just she's had a wonderful life. And I and I look at this and I look at things, you know, if you've got the quality of life and you're 100, that's just it's so amazing.
J.R. Rotchford: Sam just put up on the screen. World's centenarian population projected to grow eight fold by 2050. You know, part of the the thing when you're a financial advisor, you know, we always talk about running out of money, you know, I mean, next to your health, your money is pretty important if you have a lot of money and your health is not so good, where do you use your money? Well, doctors and long term care and you use it for your health. If you have good health and you run out of money, you know that's a problem, too. You know, in Arizona, we have the all tech system. You know, if you need long term care, there is help available. It may not be the kind of help you would pick. So, you know, we have a balancing act with our job, you know, for somebody to get to be 100. You know, Sam, you and I were talking about it. You know, you start working at 20, you work until you're 65. That's 45 years. So at 65, you retire. And then whatever your pension is, whatever your Social Security is, say you have to go another 45 years. Say we get you to 110. You know, I mean, how do we do this without running out of money? You know, that's part of what we have to figure out.
J.R. Rotchford: Pretty much everybody agrees that Social Security is going to have to be revamped. You know, when that happens, will it be in our best interest or not? I would say maybe not. So we have to supplement it. So what is this? I'm going to read something else. At the time of America's founding in 1776, the average newly minted American citizen could expect to live to the ripe old age of 35, giving them a few months to run for the presidency before they killed over 3535. Well, now we have viruses and monkey pox. Maybe we're going to go back to those days. Maybe we only have to get you through your mid thirties without running out of money. That's what's coming. So we went 35 and now we're talking about an eight fold growth of the centenarian population by 2050. My, how things have changed. Medical advancements, I mean, amazing. So, Sam, you're young. And, you know, it's funny because I talk all the time about how you and Anthony are young and I'm old. I have less time to worry about this stuff. I'm closer to really being aware of Social Security, Medicare, Medicare, Medicaid, all these things. You know, you your generation has to fix all this. You know, that's what I'm always saying. If we get through inflation, taxes, health care, borders, geopolitics, all this stuff, we still have to get back to a country that's in in trouble, you know, how is it going to be fixed? You know, are people going to start saving more and spending less? Probably not.
J.R. Rotchford: I mean, we're in such an instant gratification society, you know, you deserve that $6 million house. You work hard. You know, you need to buy that Lexus right now, you know, seven year or ten year note, you know, I believe what's coming in the upcoming years, you know, the 30 year mortgage is going to change. I think they're going to be 40 and 50 year mortgages. You know, obviously interest rates are rising. So there's things that are changing. We need to get in front of it. And that's you and Anthony's job. You know, I'm sorry to give you that pressure, but that's your job. When I look at how to help people, everybody's different. We help everybody differently. Everything is is individual. You know, when we look at people that are worried about their 401k, when we look at people that that don't know where to turn, we've been telling people, you know, if stocks are scary, you know, over the years, we could lead them more towards bonds. And now we're apprehensive about jumping into bonds as much. You know, everything that's uncertain, we can find solutions to you know, when I talk about simple stuff, paying down debt, you know, should you have some exposure to precious metals? One of the things that keeps coming back are these insurance companies, you know, let us protect your money that way.
J.R. Rotchford: You know, we're in Sun City, Arizona, where it's a retiree population. They they've always loved their CDs, not so much the last ten, 12 years, because the interest rates are very, very pathetic. So, you know, insurance companies have two year, three year, four year, five year fixed products. Know, I'm not going to say I've heard the term CD alternative. You know, it's an insurance company. It is a fixed annuity, but the interest rates have always been much higher than the banks. You know, on average, you know, we're educating people about those. Anthony's focus is on your lifetime income. He focuses on pensions. So, well, why don't we do this? I think we are running out of time. Sadly, I still think we need to work on this six hour a day show instead of one hour once a week show. But Sam, that's your gem. Let's wrap it up for here. And next week, we'll be back in our normal routine. With all three of us here for today, please do reach out to us. Another Money Show. Email us at team at another Money Show dot com. You can check out our past shows on our website. So please do that. And thank you again for joining us. We definitely appreciate it and we hope you have a wonderful week. Take care.
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 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. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.
Disclaimer: Fixed annuities, including multi year guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.
Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.
Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.
Sonix has many features that you'd love including secure transcription and file storage, advanced search, upload many different filetypes, powerful integrations and APIs, and easily transcribe your Zoom meetings. Try Sonix for free today.