AMS 070822 FULL SHOW.mp3: Audio automatically transcribed by Sonix

AMS 070822 FULL SHOW.mp3: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

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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 Carillo and J.R. Rochford.

Anthony Carrao:
Welcome, everybody, to another Money Show with your host, Anthony Carrao. And out this week as J.R. Rochford is out on vacation, enjoying himself the way I was a couple of weeks ago. So it only seems fair. But you got me. You got Sam, and I think we got a decent show. Who knows? We never really know until we start talking. We'll see how good it goes.

Sam Davis:
Yeah, I think this is interesting, Anthony. We've had a couple shows where it has been just J.R. and me, and now we get to see what it's like when you're behind the wheel. So let's find out.

Anthony Carrao:
Yeah, we're going to J.R.. I 100%. I agree with everything that he's doing is his approach. I mean, that's the only reason I'm in this office. Otherwise, I'd still be sitting behind a desk as an engineer. You know, I didn't plan on getting into this industry. I didn't want to get into this industry. But I believe in how he cares for people and his approach. And I wanted that legacy to live on. So now we're here and here with you.

Sam Davis:
Yeah, we should probably tell the people who you are and what we're listening to right now before we jump into today's topics real quick.

Anthony Carrao:
So you are listening to Another Money Show. Yeah, good call on that. Sam is always the one that remembers the marketing stuff. I just start talking another Money Show on 960, The Patriot, and last week I think we had a pretty good show. I got a little bitter. Sam and I and J.R. were discussing things that we were going to talk about leading into the show, and he vetoed a lot of the stuff I want to say, but it's just it's such a strange industry. And I don't know if I got to this story last week, but there was something that really set me off and kind of why all the I was so upset leading into that last show. But we sat down with the woman and she didn't want to go to her advisor. She didn't really know us. She's not a client. She just heard that we could help and give her some advice and wanted a backstop, someone to run her situation through. And she said she was really worried about the market, wanted to sell everything, go into cash. And I said, well, you know, let's sit down, let's talk a little bit because you got to get the full story. I mean, you listen to any of this show, you've heard how pessimistic we are on the stock market. And I want to talk about that more today. But this woman really didn't have much and she definitely didn't have much to lose. So safeguarding what she what little she did have made so much sense. So she asked, because the lingo in this industry gets strange sometimes you talk about, if I'm telling you that you should go to cash inside of your 401. K. What does that mean? Does that mean you're cashing out? Oh, am I going to have tax repercussions? No. That just means you liquidate your stuff and you go to cash inside that same bucket. You're not cashing out. Everything's the same. There's no tax implications. It stays inside your 401. K, your IRA, or whatever. You're just moving it to cash.

Sam Davis:
So, yeah. In other words, Anthony, you would be going to cash means riding the strength or weakness of the US dollar.

Anthony Carrao:
Yeah. Which is weak too. But it's. What do you want to take your chances on the next Great Depression or inflation, you know. Yeah. Personally, I'm cash heavy right now and I was like, all I know, I'm losing to inflation, but where do you want to lose at this point when everything's so volatile?

Sam Davis:
Yeah, not to get into a currency discussion and you know, maybe the US dollar isn't the best currency, but it can sure help you get a lot of things. It's better than gold. I mean, gold is valuable, but, you know, you can't go down to the grocery store and trade gold for apples.

Anthony Carrao:
Yeah. Good luck trying to barter that. Bring in your $2,000 gold coin in. Like, do you have change for this? Why I brought that up is you just asked me to listen, to make sure that when she called her advisors, she didn't mess up or say anything incorrect. So I got to sit and listen to how he explained it to her. And it was. All the same stuff we're taught as sales had nothing to do with her situation. It was, Oh, you know, if you go out now, you know, there's short term losses, but these are all paper losses. If you sell, it makes it permanent. And I was just blown away, essentially. Looking at her statement in six months, she lost everything she made over five years. This woman's not in a position to do that. So is watching this guy just take over as a salesman and try to keep her invested whether or not it was her best interest or not? And it just it blows me away. I sat with another woman. This one's funny for my networking groups. She. Had a B and I presentation that she's watching. And this adviser, you know, if you put in $500 a month for the rest of forever with compounding interest, you're going to be a millionaire. Sam, have you heard those stories? Presentations?

Sam Davis:
Yeah, it sounds it sounds super nice. All you got to do is all the hard work and saving.

Anthony Carrao:
Yeah. So she sees this presentation, and he makes a pitch like, Hey, let me sit down with you. Let me see if I can give you advice. So he does the exact same thing. I sit down with her because we're friends. So she's like, obviously, you know, if I'm going to get financial advice, I want to sit down with you. I said, okay, she doesn't have $500 a month to be putting away towards this. Not at any point did he ask us questions to get to know her situations. It was strictly a sales pitch. And what I love to, because I see TikTok videos and Instagram posts about putting money away and compounding interest in the strength. What about sequence of returns? Nobody ever talks about sequence 7% over 20 years as an average seems great, but you're not getting 7%, 7%, 7%. Sometimes you're getting 14%, sometimes you're getting zero. Sometimes you're getting -20. Do you know how different your outcome is? If you have all those negative years up front versus some positive, you know, if you put in 100,000 and you have 7% annual for the next 20 years, you get one number if if it's a straight just 7% each year, you've got one number.

Sam Davis:
I see what you're saying, because like if I had decided, hey, I'm going to start investing in the stock market, I'm going to start this year, 2022, and I put in $100,000 and I'm like, I'm just going to see what this thing does. S&p 500 ride it out. And I start off with a 20% loss. It's I'm now working from a much smaller number versus if the market had had a good year, maybe it goes up 6%. All of a sudden. I've got 6% above 100,000. Yes. The sequence of returns drastically affects your your value long term.

Anthony Carrao:
Correct. And if you look at that same 20 years, if it averages to seven, you think it's all the same. It's not all the same. But that kind of leads me into the theme of today is who do you trust with your money and what? When is the right time to be in the stock market? I want to get into that a little bit later because that's a genuine question I've been thinking about today. But, you know, we really like talking about world events that people aren't really aware of and how that affects money now. We talk about the ten pillars. Whole thing about the ten pillars is there's so many other areas to look for. For black swan event, that's not the market itself. And those are the kinds of things that we're paying attention to. So I read a story over the weekend, $6 billion lost in China. Basically what happened is we talk about how iffy we are about the banks and how we should be worried and how you should have some cash at home and don't be fully dependent on the banks. Unfortunately, there's no way around it. You can't pay your mortgage in cash. You can't pay for your car payment in cash. You have to go through a bank.

Anthony Carrao:
There's no no way to avoid it. But that doesn't mean you shouldn't be protected. Should the banks get weird? I mean, we saw in March of 2020, Walmart never closed, but your banks did well after everything else opened up, the banks were still being strange. And that's they handle your money like that. That's not a place you want to just be intermittently closed and not have access to. It was an interesting story because it ties into the social scores to some of these people didn't have access to their deposits and now they're getting red carded and the red card is their health. Essentially how they're tracking COVID there. And if you get red carded and if they decide that you're at risk to the population. No transportation. You're not allowed into buildings. Essentially, you have to be exiled. So they're being exiled by this bank. You've got 400,000 people like you and I. All of a sudden, their money's gone. Ceo has dipped out to Cyprus and has become a nationalist there. They're going through the government right now and they're trying to figure out essentially they're FDIC like, well, what do they do? The government has come in and stopped this bank from allowing depositors, you and I, to get their money out because of the criminal.

Anthony Carrao:
Situation going on with the bank, which is scary in itself. So you've got all this money that people don't have access to. They said that there's three situations that could possibly happen. One is. If the bank doesn't go bankrupt, you can get your money back. That's the scenario that obviously everybody wants. The next option is if it does go bankrupt, their FDIC version covers ¥500,000 or whatever they pronounce their currency as. That amounts to about 75,000 US. Now what they're saying is the most likely projection is that this bank, these people putting in their money, never actually put the money through the bank. And then it got outsourced almost immediately. So now they're looking at a crowdfunding fraud suit. So depending on how the judge in the case decides, that's the only way that they're going to figure out how to get their money back, which is terrifying. So again, you're thinking this isn't China, this can't happen here. When we get back, I'm going to tell you why you should be worried about potentially this happening here. So you're listening to another Money Show, the Anthony crew. We'll be right back after this.

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:
Are you concerned about market volatility, rising taxes from the Biden administration and how it could affect your retirement? Then listen to another Money Show with J.R. Rochford and Anthony Carrao. Learn how you can reduce the taxes you pay before and during retirement. Another Money Show every Saturday at 4:00 pm on 960. The Patriot Schedule Your free no obligation consultation now by calling 6235230444, that's 6235230444.

Producer:
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Anthony Carrao:
All right, you are back. Another Money Show. So we're just talking about bank closures in China. All these people not having access to their money and the fact that the money probably didn't even make it to the bank. This is just a fraud suit, which is terrifying. And again, it's happening in China. It can't happen here. We've mentioned multiple times the CEO of Chase Bank has six felonies. Jamie Dimon has six felonies against him. I just told you that the CEO of this bank in China was a known con artist and has all these issues. So why would that not happen here? So the newest one, they got fined almost $1,000,000,000, 900 million for securities fraud involving silver and precious metals, treasuries. There is a lawsuit from Hidalgo, a mining company. Hidalgo's claim seen by Reuters, uses the evidence information from an investigation by U.S. regulators, which found that JPMorgan staff between 2008 and 2016 sent fake buy and sell orders into metals and treasuries market to move prices in their favor. We talk about the manipulation in the market, and it's not like we're just saying this is speculation. It's proven time and time again.

Anthony Carrao:
If you can't trust the banks, you can't trust the market. Who do you trust with your money? You have to trust you again. There's no way to avoid using the banks. And if you have a 401k, there's no way for you to avoid being in the stock market. I mean, when it comes to investing, how else do you invest anyways? How does 99% of people out there that are investing, where is their money? It's in the stock market. The easiest option, it's the most well known, but it's more of the the standard. We've just kind of accepted this as a culture that you put your money in the stock market. So we've got a clip we're going to play for you real quick because we talk about manipulation. Jim Cramer, huge name in this industry, Mad Money, hugely popular show, but he used to manage hedge funds. We've got a minute long clip of an interview he did with, I believe, the Street. And he talks about market manipulation and the fact that it's legal in some instances. So we're going to play that right now.

Jim Cramer:
You know, a lot of times when I was short at my hedge fund and I was positioned short meaning I needed it down, I would create a a level of activity beforehand that could drive the futures. It doesn't take much money. Similarly, if or if I were long and I would want to make things a little bit rosy, I would go in and take a bunch of stocks and make sure that they are they're higher and maybe commit 5 million in capital to do it. And I could affect it. What you're seeing now is maybe it probably is bigger market now. Maybe you need 10 million in capital to knock the stuff down. But it's a fun game and it's a lucrative game and you can move it up and then fade it. That's often creates a very negative feel. So let's say you take a longer term view intraday and you say, Listen, I'm going to boost the futures. And then when the real sellers come in, real market comes in, they're going to knock it down. That's going to create a negative, negative view. That's a strategy very worth doing when you're when you're evaluating on a day to day basis. And I would encourage anyone who's in the hedge fund game to do it because it's legal. Right. And it is a very quick way to make money and very satisfying, by the way, no one else in the world would ever admit that. But I can care. That's right. And you can say that here. I can't. I'm not going to say it on TV.

Speaker6:
Well, on a related note, there are so many more hedge funds today than when you were managing your head. Right. Do you think that that does that exacerbate the moves or does it make you know.

Jim Cramer:
The hedge funds are positioned long, short, not just long mutual funds. So it's really vital these next six days because of your payday, you've really got to control the market. You can't let it lift when you get a research in motion. It's really important to use a lot of your firepower to knock that down because it's the fulcrum of the market today.

Anthony Carrao:
So here we have this national name essentially. Really saying, well, we can get away with manipulating the market and making it move and do whatever it is that we want it to do. And he was saying as little as, of course, these values are older, but he was saying relatively not a lot of money compared to if you're a hedge fund, how much you're managing these kind of manipulative measures haven't gone away. They're still alive and very present. Now there's a movie that I highly recommend if you haven't seen it. It's called The China Hustle. Sam, have you seen that one yet?

Sam Davis:
I have not seen China Hustle.

Anthony Carrao:
No, I can't remember. I think it's on one of these streaming, actually. You know what? It's on YouTube. So you can just watch it on YouTube for free. I highly recommend it, but it talks about again, we're talking about China. Oh, that won't affect us here. This whole movie is about how China fraud hit the stock market in the US and hit it hard. Essentially what these companies were doing is they were finding debunked companies, but we're still listed under the CC in the US stock market, buying them out and then using them to essentially step aside the IPO process. What happened is they started projecting numbers that were just insane. So they're releasing these K ones and things to the US market saying how great they're doing. And this they're skyrocketing. We had a client, you know, this was before I was in the industry, but J.R was talking to a guy that had some of these stocks, you know, at the time that this is taking place and he's up 60, 70% in shares. Like that's insane. This shouldn't be happening. Takes them off the table just again, like we're supposed to tell you. It's just a paper loss. If you're losing money, it's just a paper gain unless you cash out. So he's saying, you know, take some profits off the table. Well, what was going on? These companies in China were run in their usual business, but they're not successful.

Anthony Carrao:
They're barely doing a fraction of the production that they're telling the US market, but they're not lying to the Chinese government. However, it is not illegal for you to lie to foreigners, essentially. So they were making up their evaluations essentially for the US market. All the paperwork that they're turning in were lies. So someone discovered this and they said, How are these companies doing so great? So they went to China and they sat outside some of these companies and they took videos like if there's real production going on to hit these numbers that they're saying there should be trucks leaving this facility every 5 minutes. He's like, I've been here a week. I haven't seen a single truck leave. And then he would see people come to visit foreign investors or whatever. And now all of a sudden the lights are on, the phones are on, and actually looks like it's a used facility. He says most of the time it's not being used at all. So. Again, to say that strange things happen in in other countries can affect us here is just it's not true. So those are the you know what this whole program is about. Let's warn you and educate you on all the other things that we're looking at. So more recently, there was another company. Sam, have you heard of? We work?

Sam Davis:
Yes, I have heard of. We work. And I saw that they recently did some sort of fictional recreation of the We Work story. Is that right?

Anthony Carrao:
This the one I watched was a documentary.

Sam Davis:
I was they probably covered it in a fiction way, too, but I think they're actually making a film about it or some show.

Anthony Carrao:
It wouldn't surprise me. It was super, super interesting. And I, I think I remember seeing the logos places, but I didn't really know any of this stuff was going on. But what you know, in summary, for those out there that have not watched this movie, if you're interested, I think this one's on Hulu. It was a real estate company that was kind of like a tech company. But then they started doing like living spaces and rentals for individuals, and then they started to try to do schools. And the guy started like he he was brought up in a compound.

Sam Davis:
So I'm seeing they actually they are they're working on. Oh, is that Jared? They're working on a television show called We Crashed about the story.

Anthony Carrao:
Interesting. Yeah. I'll have to go back and watch that.

Sam Davis:
Yeah. Interesting. Yeah. So it is it is a wild story. And they were incredibly valued high, highly valued for a time.

Anthony Carrao:
Highly, highly valued. But they're not a Chinese company, so they actually had to release proper information. So when you're a private industry or a private corporation, it's easy to hide and fix the numbers. So if you're going to have an IPO and go to the public, you know, you've got to. Put it out on the table. So as a private business, investors were evaluating as 5 billion, 10 billion. 20 billion by the time they're ready to IPO. There was like 40 to $46 billion that they thought this was work. But we're going to have to finish this story after this break. You're listening to Anthony Carrillo with Another Money Show. We'll talk to you soon.

Producer:
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Anthony Carrao:
We're back. We're talking about we work and the whole IPO process. So what happened is they're evaluated as this private company with so much money know 40 to 46 billion, I think, whereas the evaluations now they've got to put everything on the table so it can go and get IPO to the public sector. As soon as they took out the real numbers and people were able to dig deep into them, it was it went bankrupt pretty much overnight. You have this massive, thriving business everybody loves and wants to give money to and then all of a sudden done overnight. And the point I want to make with that is, is there's really a difference between actual money and evaluations and asset values. And there's just such a disconnect in that right now. I like pulling up people use the billionaire example all the time. It was like Elon Musk, what is he valued at now? 210 billion, some something obnoxious. Here's what you need to know about that. He was evaluated at 24,000,000,002 years ago. In 2020, 24 billion. Now he's worth ten times that half. How do you make that kind of money? Well, you don't. His stock did his stock, Tesla stock. Right. And he owns a few other companies assets all over the place. But Tesla is this big one. That's what he's known for. Was that $180 a share in 2020? It went up to a high of approximately 1200 dollars in the last two years. Now it's down floating around the six 700 range. That's insane. But if you're going to say Elon Musk, he's worth $210 Billion. He could feed everybody in the world. He can do all that. You've got to understand, he doesn't have that money. That's the value of the stock. If you sell those stocks, you think if Elon Musk gets out there today and he's like, I don't want Tesla anymore, I'm going to start selling off all my shares. You think those are going to go up in value or go down, Sam? What your you're an educated man. What's your guess in this?

Sam Davis:
Well, there's going to be a real high supply, and so the price is going to go down. It'd be like if your grocery store, instead of getting their truck full of all the food that they put on the shelves, they just got apples one day. And, you know, now they need to sell those apples and the apples get priced to sell so the price would go down.

Anthony Carrao:
You just given away giving away Tesla's electric cars all the way around. The point is that real money and asset money are different. You don't really have that money. Money is fake unless you have it cash in hand. You know, Wu-Tang Clan says it best. Cash rules everything around me. Unless you have cash, you have nothing. Think of 2008. Go back to 2008. We had a client. This was before my time. J.r. tells this story better. I think he had like five or six houses. Five or six houses is an asset. You know, guys, probably millionaire, multimillionaire. Does he have $1,000,000 or does he have $1,000,000 worth of assets and asset prices change? You can go from being evaluated at 48, 46, $40 billion to being bankrupt overnight based on your asset prices and values. You know, you look at these billionaires again, Bezos 144 billion in assets. Again, these things change. But he's saying he's got 15 billion in cash. Well, if you want to feed a country and do some good, you can do a lot of good with 15 billion in cash.

Anthony Carrao:
So it's not like these men are poor, but there's a massive difference between 144 billion, 50 billion. Bill Gates estimated 56 billion in cash. So these three. Elon Musk is by far the riches by over $100 billion. But who actually has that money in these three situations? Who would I rather I'd rather be, Bill. I would rather have the cash. So I'm running out of time. In this segment, there's a clip. When we get back, I'm going to play of Jeff Bezos, because it's one thing for Anthony Carrao to give his opinion and tell you that the stock market versus actual companies and assets versus cash are different. But who is Anthony Carrao and why does anybody care? Jeff Bezos, on the other hand, if he says something that aligns with what I'm saying, maybe you give it a little bit more credit. So we're going to be back after these messages again. You can find us at another money show dot com. You reach out to me directly at team at another Money Show and we will be right back.

Producer:
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Producer:
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.

Anthony Carrao:
All right, you are back. Anthony Carroll, Sam Davis on another Money Show. So we're talking about, you know, evaluations, asset value versus actual cash. I want to talk to you about the stock market versus actual companies. Right. And again, I can give you my opinion all day, but who's Anthony Correa? Why do I care? So we're going to play a clip from Jeff Bezos, which I think hits the nail on the head. And I think a lot of people need to keep this in the back of their mind.

Speaker6:
At the peak of the Internet bubble, our stock peaked somewhere around $113. And then after the Internet bubble busted open, our stock went down to six. It went from 113 to 6 in less than a year. My annual shareholder that year starts with a one word sentence, and that one word sentence is the word ouch. So most of those internet companies of the dot com era are out of business. Yeah, you survive. What was that that made you to survive? And virtually the rest of them are gone. It's very that whole period is very interesting because the stock is not the company and the company is not the stock. And so as I watched the stock fall from 113 to 6, I was also watching all of our internal business metrics, number of customers, profit per unit, you know, everything you can imagine, defects, etc. Every single thing about the business was getting better and fast. And so as the stock price was going the wrong way, everything inside the company was going the right way. We didn't need to go back to the capital markets. We didn't need more money. The only reason a financial bust like the Internet bubble bursting is it makes it really hard to raise money. But we already had the money we needed, so we just needed to continue to progress.

Anthony Carrao:
So, Jeff, right, we just talked about billionaires. So probably someone who is fairly business savvy says something that's so, so important. And I really need this to stick with you. If you're listening to this, remember this. The stock is not the company. The company is not the stock. So when we talk about over valuations and things that just don't make sense in the stock market, I mean, the economy came to a stop in March of 2020 and the market took a dump for one month and then has since doubled it was or nearly doubled it was right around the 18th. The Dow Jones right around the 18,000 mark went up to almost 36, you know, doubled. And one year the economy look back for the last two years, what's gotten better? Has anything actually recovered? I mean, we have issues with the stock market and things going on, the manipulation before COVID ever hit that have never been addressed. So we're still not recovered from COVID on top of all the other issues that we've had yet, the market is double again. The economy is not the stock market. The stock market is not these companies. And that was just it was the perfect clip. So this is I think I said this earlier on the show and I've really been mulling it over, is when is a good time to invest in the stock market? And again, this is an honest question, and I've got some I want to share with you my thoughts and kind of what I'm thinking. But, Sam, what I mean, you're you do this your producer for a ton of other financial shows. If I'm asking you when's a good time to invest in the stock market, what what are your thoughts? What is your answer?

Sam Davis:
Yeah, my first thought is if you're trying to ask yourself if the question is really when should I invest in the stock market? What you're really trying to do is you're trying to get the timing right. And I think you can drive yourself absolutely crazy trying to get the timing right. So I would actually push back and say maybe rephrase the question a little bit to how should I invest in the stock market? Because we talked a little bit earlier in the show and you like you said, like if you're with a company, you've got a self-directed 401. K plan for through that company. Maybe they match a little bit out of each paycheck. Maybe it's an automatically enrolled type thing. It's hard to completely avoid being invested in the stock market no matter who you are. If you're working class taxpayer in the United States, you're probably invested in the stock market. So I would push back and say, Hey, how should you invest in the stock market? And really look at it as more of a long term thing. Because if you're trying to time the market and you look at a year like this year where you're down 20%, you know, maybe you could answer the question with now is the time to invest in the stock market. If you're really asking when because things are so deflated currently, you've kind of got it on sale, so to speak. But if the question is how should I invest in the stock market, you need to be thinking long term and not a short term sort of solution.

Anthony Carrao:
Okay, so one, I like that. I like the how instead of the win. But let's give some. Examples, right? Like, let me go through my thought process and kind of what steered this again back to that woman I sat on the phone with who called her adviser, who just gave them a sales pitch in. Why you need to stay invested. It makes sense. In normal times, let's say some sectors do better than others. Something's usually going up. So you're moving from sector to sector. One company is doing better. When one company is doing better, you sell. You take some of those profits. Kind of a shared experience. The buy low, sell high, but also capturing paper gains, not capturing paper losses by taking some of those gains, applying them to the ones with losses. And then when they go up, you actually have more shares that goes. But when we're in a bubble system like we have been for the last 20, 30 years, what happens when everything falls and then it's a time, right? You talk about time and you can't time the market, but if you need that money at any point.

Anthony Carrao:
So you're just is it a roll of the dice? If you're in the stock market, well diversified, you're not crazy gains, but something consistent or even just the market overall, say all of your investments are in the S&P 500, the SPI, and you're going to retire in 2008 or you're going to retire in 2005 or you're going to retire in 95 or you're going to retire in 2015. Those are all very different dates and different values, but you don't know what it's going to be like when you need that money because you're not putting in money into the market to never need it. Your goal is eventually to need it. So when you do need it, is that it? You just you hope. Do you think people have any other options? Again, that's an honest question. I know it seems like because I don't I'm not trying to get to objective. This isn't me trying to like softball this up so I can get to the point. My point is, is investing in the stock market really just kind of luck when it comes to when you actually need or want your money.

Sam Davis:
Yeah, I mean, I think that it offers much lower protection than other alternatives. But obviously we've seen what the upsides can be. If you zoom out and you don't just look at 2022 and you don't just look at the past 20 years, but if you look at the past, you know, 30 plus years and that growth over time, if you're planning to invest for a decades amount of time, I think it's it's it's a nice mix into your portfolio. But if you're completely overleveraged in the stock market, yeah, I mean that would be tough to sleep at night knowing that any year could come by and all of a sudden one in every $5 you had is is gone.

Anthony Carrao:
Now, that's that's fair. And I think that's a good answer because, again, we're not 100% get out of stock market, never have money in the stock market. Your philosophy is more just there are certain steps you should probably go to. You want to be well diversified. You want to have all your bases covered, but there are things that should take priority. And I think our approach to what takes priority is a little bit different than most because again, we're not just trying to turn around and sell. I mean, I was trying to make a list of kind of the order of importance. And I'm like, I think number four is where we step in. So essentially I'm an advisor and I'm telling you, the first four priorities that you should have to your financial freedom don't involve me at all. The way I think about it is getting out of debt. So I say this all the time. Don't owe any money to anybody if you don't have to. The greatest way to contain wealth is to not be paying it out. Is it easier for me to make you $1,000 a month or to help you get out of debt so you don't pay $1,000 a month? The outcome is the same. You're right, your net value is still the same, but it's easier to do one versus the other. And I'm huge, huge. I'm not having debt. Now, if this is a moneymaking show and not the protective approach that we show, paying down debt is terrible. That's not how you make money. You make money by taking on debt and then reinvest in it. You borrow at one rate and pray that you make it more on another rate.

Anthony Carrao:
That's called margins. I don't like it. I don't approve of it. I think that our system is so corrupt with margin trading and betting on money you don't have. So it's to the the public don't don't take out loans you can't afford and everybody looks down on you. Well, if a corporation does that, awesome. If you do it, you're bad. So it's the hypocrisy is just outstanding. Keep cash on hand. Liquid assets, right. Again, that doesn't make me any money. As adviser, I already told you, I don't know that we really trust the banks, but they're necessary evil. There's no way around it. You have to use the banks have liquid liquid assets. You talk about precious metals, gold, silver. I mean, those are I don't know, you have to find somebody who's going to be able to trade. Bad stuff with you have food and water. That's very. Those are if you're looking for tradable assets, if things get weird, have an emergency fund at the bank. You do want to have some money in the bank and have that little bit extra anything you can't I can't tell you to keep 100,000 at your house if you can. More power to you. Make sure it's protected after that. Focus on income, the pension plan in that we talk about income and retirement's huge. After that branch out, then you start looking at collectibles, stocks, bonds, art, all that. I'm running out of time. And this and this has been a lot of fun. Sam. I like just me and you. We're going to kick Jay out.

Sam Davis:
It's casual.

Anthony Carrao:
So the moral of this story is that financial advising. I don't need an hour to tell you how to invest your money. You know, I'm talking about the news and other things going on, but essentially investments in your approach to finances can be summed up in a pamphlet. So I'm going to play this clip because I think Steve Martin in this SNL skit says it absolutely best. Chris Canal, it's hilarious. We're going to play that real quick for you. And this is all the financial advice you need.

Speaker7:
I just can't get these numbers to add.

Speaker6:
Up like we're never going to get out of this whole.

Speaker7:
Credit card debt. Does it.

Speaker6:
Ever end? Maybe I can help. We sure could use it.

Speaker7:
We've tried debt consolidation companies.

Speaker6:
We've even taken out loans to help make payments. Well, you're not the only ones. Did you know millions of Americans live with debt they cannot control. That's why I developed this unique new program for managing your debt. It's called Don't Buy Stuff You Cannot Afford.

Let me see that.

Speaker7:
If you don't have any money, you should not buy anything. Sounds interesting.

Speaker6:
Sounds confusing. I don't know, honey.

Speaker7:
This makes a lot of sense. There's a whole section here on how to buy expensive things using money you save.

Speaker6:
Give me that. And where would you get this saved? Money. I tell you where and how in chapter three.

Speaker7:
Okay, but what if I want something? But I don't have any money.

Speaker6:
You don't buy it? Well, let's say I don't have enough money to buy something. Should I buy it anyway? No. Now. I'm really confused. It's a little confusing at first.

Speaker7:
Well, what if you have the money? Can you buy something?

Sam Davis:
Yes.

Speaker7:
Now take the money away. Same story.

Speaker6:
Nope. You shouldn't buy stuff when you don't have the money. I think I got it. I buy something I want and then hope that I can pay for it, right? No. You make sure you have money, then you buy it. Oh, then you buy it. But shouldn't you buy it before you have the money? No. Why not? It's in the book. It's only one page long. The advice is priceless. And the book is free.

Speaker7:
Well, I like the sound of that.

Speaker6:
Yeah, we can put it on our credit card.

Anthony Carrao:
And that's it, folks. That's how simple financial advising is. Don't spend money you don't have. So if you want my pamphlet version of the advice that I give to clients, if you want to sit down, get an opinion, throw your ideas at somebody, give us a ring. Phone number is 6235230444. You can find us at another money show dot com. There's a contact button in there. You reach out to us directly or just email us directly from your any account you have team at another money show. This has been fun. Thanks for listening. We'll talk to you again soon.

Producer:
Thanks for listening to another Money Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets, to schedule your free no obligation consultation. Visit another Money Show dot com Investment Advisory Services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor, BCM and Rochford Financial are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investment involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

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