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Radio. For a really great

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cancer We're talking a real money.

0:41

Hey, welcome to our little

0:43

podcast again I everybody it's

0:45

the talking Real Money August

0:47

I'm Dawn Mcdonald in Florida.

0:49

that's Tom Goc in. The.

0:52

Outskirts of Seattle. Bellevue. Which

0:54

is a giant city in it's own right.

0:56

these days. How big Is Bellevue? unaware? They.

0:59

Will it goes past the door here? I know

1:01

that other than average I'm an animal out a

1:03

lot of you do not know. No.

1:05

I don't use your the western

1:07

around. you already know. I'll say

1:10

two hundred thousand. I. But

1:12

it's better than but we'll find out. Will

1:14

check it out before the show's over. I

1:16

will. I'll check it out. Hi everybody welcome

1:18

to the big show! This is the show

1:20

where we deal with Joe. We spend a

1:22

ton of time talking about saving and investing

1:25

the money that you will need for that

1:27

big future goal. The biggest one of all.

1:30

It's the it's the eight

1:32

hundred pound gorilla. It's the

1:34

thirty two Titan giant woolly

1:37

mammoth. It is Huge. It

1:39

is. The. Time when you're gonna need

1:41

a ton of money. We call it.

1:44

Retirement. And. In

1:46

retirement something people didn't do back in the

1:48

old days much you know of view of

1:50

the rich did but they were already rich

1:53

so geared most working people they just died

1:55

on the job. But today we get to

1:57

retire And we get to retire sometimes for

1:59

a very. Long Time which requires

2:01

an income stream over and

2:04

above social security. That's.

2:06

Why we try to help you get their better

2:08

but. It's. Not linear. It's

2:10

not just say, say, say, say say say

2:13

some sprint. There's

2:15

a process and they're actually stops

2:17

along the way. And

2:19

one of those steps is that

2:21

time. As. You're prepping for

2:23

within the time when you go. Okay,

2:25

I have the number. My. Goal

2:28

is to retire at x. So.

2:30

What are the important things that

2:32

you need to do as you

2:34

approach acts a retirement? It's the

2:36

number two question we get after

2:38

I just came into money. What

2:40

do I do with the now

2:42

that's number one or actually and

2:44

number two in today's world as

2:47

I don't have what money and

2:49

bonds or put on C D

2:51

is because they're making five percent.

2:53

That's a. Title. For another

2:55

day that the current cornea heard that

2:57

was the last. But it does come.

2:59

This one comes up a lot in

3:01

it's it's Again And I personally think

3:03

for anyone over the age of fifty

3:06

Now my life changed since fifty is

3:08

Dawn know of that was held in

3:10

one direction or another direction. Ah is

3:12

that there are a number of things

3:14

have changed quite a bit. Assesses yeah,

3:16

cell divides us retail for both of

3:19

us was a weird zero. Very strange.

3:21

so which is fine. but I still

3:23

think after Fifty. You should at least

3:25

start thinking about these and maybe not

3:27

necessarily have the case. May be thinking

3:29

the authentic really. I'm thinking planning may

3:32

be as like it's sixty, but I

3:34

would be at least. Put. And

3:36

stuff on paper and think about it and

3:38

and aca thing but this summer somebody elses

3:40

work. you are a plume. That's true. This

3:42

comes from Christine Beds, ah, whose work we

3:44

greatly respected. She writes at Morningstar in a

3:46

regular basis, and I like her work there

3:49

and this comes from her and these are,

3:51

according to her, the key tasks. For.

3:53

Investors approaching retirement. Now

3:55

the order. I. Found interesting

3:57

because the first one she meant as as norris.

4:00

You're. Human Capital. Will

4:05

that vague? Yeah, I've what it is. Anyway,

4:07

the fact well I know read me her

4:09

head as use it is just. here's what

4:11

it means to me is it is open

4:13

to interpretation very much but it it for

4:16

most people. You. Just you

4:18

mentioned retirement and money. right? It's

4:20

about how much money do I have? How much can

4:22

I spend x anything? In

4:24

the probably should be. Thinking about the other parts of

4:26

retirement which I spend more time to day six bucks life

4:28

of or has a day? What? Like when I have a

4:30

day when I'm not in the office? Is that

4:33

they're busy? Sir. Think and our

4:35

gonna do here and on early. Want to

4:37

sit around and watch T V? I want

4:39

to models Can I build a me My

4:41

see my grandparents on Fridays Of all I

4:43

know it's not all day every day. Six

4:46

Seiser think I gotta fill in the blanks

4:48

your I think about this regularly. I think

4:50

it's overlooked kind of the purpose in retirement.

4:52

What am I going to do. Da.

4:54

And will continue to voice work till the

4:57

day he drops. Oh he's all set and

4:59

maybe would you the podcast of the days

5:01

we dropped so there's some time but purpose.

5:04

Ah the human side of retirement that a

5:06

think people. Used. To

5:08

spend no time on and now get a

5:10

little bit with touched on it retirement a

5:12

bit. Probably. Doesn't get as much

5:14

attention I think done as it deserves. Neither

5:16

one of us are going to be a

5:19

golfer know. Well. We could try

5:21

a male know you know I tried I

5:23

look I'm of I live in Florida are

5:25

often I want I'd it's it's it's it's

5:27

at my age you know the old can't

5:30

teach an old dog new tricks or ago

5:32

that are pretty much me the old dog.

5:35

And know it to that there's one

5:37

another. it's worthy worthy once I'm She

5:39

also says start mulling your social Security

5:42

strategy which yeah, I agree, but I'd

5:44

be doing more than mulling as I

5:46

approach retirement. I would have an idea

5:48

as to really when I'm going to

5:51

start to claim so security. And.

5:53

When my significant other would be claiming it as well

5:55

as I would look carefully the numbers and I would

5:57

already have a log in or just a big. In

6:00

The Wall Street Journal about the number of people. Who.

6:02

So securities been defrauded. By.

6:04

People had ended their online and

6:06

said they're check to. Wichita.

6:09

Kansas instead of getting a to

6:11

your own Bank of Canada. Once

6:13

you have a legitimate as as

6:15

A.gov then you get that when

6:17

you have the benefit of two

6:19

factor identification and a lot more

6:21

hoops for potential. Are scammers

6:24

to to jump through. So.

6:26

I would at least know those numbers. I

6:28

would have an idea.and I have publicly stated

6:30

that we plan a wedding till seventy. I

6:32

sometimes think though I get retire early on

6:34

in. oh no are you get sick I

6:36

mean my like started when I'm on I'm

6:38

going to be or and sixty seven of

6:40

course I'm from wait till seventy but you

6:42

might it's sixty I have sailed this. take

6:44

it now because I'm not work and as

6:46

much or whatever any the cash whatever it

6:49

is so that's that's where the but I

6:51

do more than mole on your So security

6:53

strategy if I'm approaching retirement number three and

6:55

there's a little difficult. As well maintaining

6:57

your safety net. Now I'm assuming

6:59

she's referring to sort of how

7:01

much. Liquidity. You have

7:03

in your portfolio right? nor let's just

7:05

as good as your ear Cds and

7:08

correct the high yield savings accounts that

7:10

of which is remembered were bigger. As

7:13

you get closer to retirement, right? I

7:15

mean, Again, My.

7:17

Portfolio is very little of the senate save

7:19

for a little bit money of taxes and

7:21

the I have an expensive. Trip.

7:23

Coming up the summer them leaving some cash or but

7:26

other than that I don't have a whole lot of

7:28

sort of cash holdings. And. Again,

7:30

we try to help you on

7:32

separate investing. From. Saving Saving

7:34

is the stuff that they're

7:36

for the emergencies, whatever. investing

7:38

more long term. So. Yeah,

7:40

maintaining that safety net, but I would

7:42

be. The. Surly adding to it If

7:45

I if I already had the money I needed

7:47

for the short term, their. I.

7:49

absolutely yeah but the you know they are

7:51

the same though when you think about it

7:54

for minutes it's all part of that pie

7:56

and you do with the emergency money is

7:58

going to be replenished from your address So

8:01

it all they work together. I think I

8:04

think everybody should look at all

8:06

of their assets as one big

8:08

massive investment portfolio. That

8:11

is absolutely fair, which brings us to

8:13

number four from Christine

8:15

Benz. And she says assess

8:17

the adequacy of your portfolio.

8:19

Assess the adequacy. Her

8:23

writing is just a little bit cryptic.

8:25

It's a bad thing. Obsess the adequacy. What the

8:28

heck does that mean? Okay, but there's a couple

8:30

of things here to unpack, I think. Number one

8:32

is do you have the

8:34

right mix between risky things like stocks

8:36

and less risky things like bonds? That's

8:38

one. But then I think it's never

8:40

the wrong day to get an analysis

8:42

to find out after that

8:44

how diversified you are, how

8:46

much risk you're taking, and how much you're

8:49

paying others because money is more surprised. I

8:52

find it curious that the

8:54

vast majority of investors, which that's

8:57

a lot of people, don't have a

9:00

clue. Don't know what the

9:02

pay is. How their portfolio really is invested.

9:04

I find it fascinating. We ask all the time. They

9:06

call in and they go, well, I'm investing with Sun

9:08

Sun. And we'll go, well, give me the name of

9:11

a fund that's in your portfolio. Any

9:13

fund. Anyone, just one even. I don't

9:15

know. What's your stock

9:18

bond rate? I don't know. How

9:20

much? I don't know. Nobody

9:22

knows. You got to know that.

9:26

You know, that leads me to

9:28

believe that maybe the industry doesn't

9:31

want them to know. Which,

9:33

of course, we know – Am I just being overly suspicious? We know

9:35

they don't want you to know for the reasons they don't want you to

9:37

know, right? Because

9:40

that's the less you know, the more they end

9:42

up with. But I think that's – by the

9:44

way, the adequacy of your portfolio is

9:46

something you should know every bit as

9:48

much at 30 as you should at 60. That

9:50

shouldn't be something that waits until you're approaching retirement.

9:52

I love this

9:55

one. Number five. Embark on

9:57

a pre-retirement savings sprint. In

10:00

your case, Don, we're going to give you exception. We're going to allow

10:02

you to walk it instead of sprint it. Oh,

10:04

thank God, because I don't want to see you worn

10:06

out. These legs are as young as they used to

10:08

be. Let's get somebody else lifting them and putting forward.

10:11

I love this because you

10:13

should be maxing out in the places

10:15

that it makes sense, whether those are

10:17

pre-tax or post-tax or taxable accounts. You

10:19

should be cranking it up right now,

10:22

setting that money aside, having it grow, because you're

10:24

getting close to the time where you're going to

10:26

start pulling on it. Really

10:28

good advice. And

10:31

it's all good advice. Is that it? Well,

10:33

that one. Then you want me to go

10:35

on to number six? Oh, more? There's more. How many are there?

10:37

Couple more. Two more. Two more more. OK, all right. And then

10:39

I got my three. I

10:43

always have my comment. You know that. This

10:46

one, again, kind of gets back to what we talked about

10:48

in what you had in number three. But

10:50

build your stakes in safer

10:52

securities. That gets back

10:54

to kind of overall portfolio design,

10:57

right? Right. That's the whole idea

10:59

behind target date funds, is

11:01

the automatic rebalancing to

11:04

safer assets as you get closer to

11:06

retirement. But we believe there's also an

11:09

added component to that. It's not just

11:11

age. It's inclination,

11:13

which comes into which

11:16

your risk tolerance factors

11:18

very, very highly. Which

11:21

we give you free by going and

11:23

taking the risk quiz at talkingrealmoney.com. So

11:26

I wouldn't be rushing all of my money

11:28

from stocks to bonds as I got close

11:30

to retirement. But I would know what my

11:32

ratio was. And I'd know what rate of

11:34

return that ratio is likely to supply. And

11:36

they know how much I need to make.

11:38

That would be the key thing. That's the

11:40

important part. How much do you need to

11:42

make? Because if you don't need

11:44

to make too much, and

11:46

you're not trying to win the race for

11:48

the richest person on the planet, which I

11:50

think you've already lost, then

11:53

you might as well not take as much

11:55

risk if you don't need as much money.

11:57

And That's been a change, right? They

12:00

source now ahead of elon musk in that

12:02

and the sleep say no I can't learn

12:04

more about with this the what are you

12:06

can't keep up by get that are I

12:08

got never have been one of the telephone

12:10

that maybe supply the pocket change one day

12:12

or something ah that would import but I

12:14

just this once. Again doesn't

12:16

get the attention it deserves and should be.

12:18

I would move it all away of right

12:20

up underneath the So security strategy and that

12:22

is. Think. About your

12:25

withdrawl sequencing. Another.

12:27

Where's where's the money going to be

12:29

taken from? Especially if you've got these

12:31

different I know you hate the expression

12:34

Buckets Holdings Pretax. Ross. Taxable.

12:37

Tanks was clipped. Tank see are

12:39

holding tanks partners at work so

12:41

anyone boxes treasure chests measured says.

12:43

But I mean they all have

12:45

different ramifications tax wise that now

12:47

you need to be very sensitive

12:49

about not just in terms of

12:51

paying tax, but then terms of

12:53

your unfriendly friended Medicare called are.

12:55

There's a lot of things to

12:57

look at here to be very

12:59

careful. So the sequences others were

13:01

that money's going to be drawn

13:04

from when it's gonna be drawn.

13:06

Is. Very very important And

13:08

retirement. Did

13:11

you have more? Oh. So I

13:13

always have more out arousal to give you a

13:15

chance to comment on that one but I'm ready

13:17

to go. I mean you know, course that goes

13:20

without upsetting. I think number one at six right

13:22

to the top of the list to the Christine

13:24

didn't even mention them that I love her. Number

13:26

one was week so well he either that apple

13:28

and well I'm gonna go ahead and booted over

13:30

to the side here and step right in and

13:33

say know how much money you're actually spending. How.

13:35

About that. I mean that's not their s

13:37

not there. I mean you got into what

13:39

this bad for. You know, whatever it's been

13:42

do exactly as you can. calculate

13:44

a future sprint yup i think that's one

13:46

hundred percent number one day i give you

13:49

that when that's a big would and be

13:51

honest with yourself about it because many people

13:53

think well now that i'm retired i want

13:55

to spend eighty percent of my current income

13:57

i'd run it is one hundred percent And

14:00

I know you're not going to save in your 401k

14:02

and I know you're not going to buy a suit

14:04

anymore and you're saving on gas every day, but shocking,

14:07

money still gets spent. Number

14:10

two, this is one I still see on a

14:12

regular basis. You got to start

14:14

cutting off the people that need your help. It's

14:17

just the reality. I'm not

14:19

looking around for Debbie. I'm not

14:21

talking about Debbie. Tom's going. Tom's

14:23

going. So, number two, be selfish.

14:26

You have to, because if you get closing in

14:29

on retirement, you have to be, because guess what?

14:32

There's nobody going to loan you the money for retirement.

14:34

You need to take care of yourself and your significant

14:36

other. I wasn't cutting off Debbie or Donnell. I'm

14:39

sorry, Tilders, no matter how big the crisis is.

14:41

That's the truth. I wish you well.

14:43

Is that shows people handling people, handing people, oh, here's

14:45

5,000. No, you

14:47

got to take care of you first right now. That's

14:50

huge. I hear Sedona has set

14:52

aside a lovely parking lot for people living

14:54

in their cars. Well, please, well,

14:57

if they want to borrow the silver bullet,

14:59

that's another thing. But here's number three. And

15:01

I think, again, this is Tom's number three.

15:03

My number three. Absolutely critical because

15:06

you could do all these things and you could do them

15:08

well, but I would still get a review

15:10

by a 100% fiduciary advisor,

15:13

absolutely 100% of the time because there

15:16

are going to be things you didn't think about.

15:18

You just don't because you don't do this every

15:20

day. So I'm sorry. That's easy for

15:22

you to say, but nobody knows where to find one. No,

15:26

truly finding one is literally,

15:30

I've done looking. It's

15:34

really hard to find

15:36

good ones. I've used some

15:38

of the services where they send you names and I look

15:40

them up and I go, 100%

15:42

fiduciary. No,

15:45

not really. Oh, they say they are,

15:47

of course. Come on. I

15:49

have a number four. Oh, please. One

15:52

of the things you need to do to make sure

15:55

that you enjoy a great retirement is

15:57

don't die before it. that

16:00

helps. Stay alive into retirement. Although,

16:02

I mean, who knows after death

16:04

what kind of, you know, life

16:07

you got might be better than this one. I don't

16:09

know. So. Right. But you can't

16:11

really plan for, well, okay. Some will say

16:13

you can. I guess, never mind.

16:16

I'm going back to my little cave over

16:18

here where I would of course. Shut the

16:20

door quickly. Before I get into more trouble.

16:22

Which is coming. Am I for the email?

16:24

My life, I get into trouble all the

16:27

time. Anyway. So

16:29

those are a couple ideas. I think they're good

16:31

ones for the most part. And I think if,

16:33

but again, I'll go back to that final one.

16:36

If you're getting serious about this, you got to

16:38

get serious. You got to get some help and

16:40

make a look at that. Oh, you know, it

16:43

was funny. I was reading through some of our

16:45

reviews and the two biggest complaints about us. One,

16:47

we don't like crypto. Okay.

16:49

Me. Well, we don't like it.

16:51

Do you, do you

16:53

think crypto is a great investment? How are you getting off

16:55

the hook? I

16:57

wrote it all the way up to 73,000 sold

17:00

it and I've made a lot of money so

17:02

far this year, but publicly I say I don't

17:04

own it. No, I can't complain about crypto. Okay.

17:06

I haven't, I'm not as blatant as you,

17:08

but here's the way I look at it. I'm

17:10

going to admit, I don't know enough about it, but I'll

17:12

tell you this. I've

17:14

made or the past

17:17

shows you could have made enough, at least

17:19

for me in stocks and bonds. I don't

17:21

need it. That's like somebody comes to you really

17:23

got to be part of this. Why? I don't

17:25

have to be part of, I don't have to add anything.

17:27

Look at him again. Yeah. Look at him again. He's like,

17:31

I'm announcing my senatorial campaign later. I can

17:33

say a lot without saying a damn thing.

17:35

You know what

17:39

the second biggest complaint is? Okay, go

17:41

ahead. I'll take it. We're too basic.

17:44

Yeah, because most people, they don't realize

17:46

how important that is. If they did

17:48

a few simple things,

17:51

they think that we're skipping that

17:53

we're, we understand all of the

17:55

complex topics are well, but

17:58

we don't share them with you. Is

18:00

this the thing about how we tell you

18:02

index funds but you and I are really

18:04

secretly investing in some other way? Apparently. We

18:07

had a tricky secret sauce that we're throwing

18:09

over everything. Supposedly we're supposed to share the

18:11

complex strategy of the day with you. Okay.

18:13

All right. But we have a fervent belief,

18:15

and it is fervent, that

18:17

most of this stuff is BS. It

18:21

is just absolute garbage. Why would we

18:23

share it with you? Just because somebody

18:25

says it's hot to make some money

18:27

off of you. And

18:29

that, my friend, is everything you need to

18:32

know about Wall Street. Because that's

18:34

what they're very good at. All right.

18:36

Time for a couple of questions. Yeah.

18:38

This one comes from Thomas. So we

18:40

have to take his question. In Pensborough,

18:42

Pennsylvania. Who has a nice alliteration there,

18:45

Pensborough. You know, they do a lot

18:47

of pensing in Pennsylvania, don't they? They're

18:49

pensive bunch. Okay. He says, I

18:51

have $110,000 in annuity that will be out of surrender in less than a year. Yay.

18:57

And then he has $750,000 in other accounts, blah,

18:59

blah, blah, available when needed. But the question is

19:01

about the $110,000 in money. My

19:05

thoughts, once I get my

19:07

money back from the evil insurance company, is

19:09

to put it into a Vanguard rollover IRA, which

19:12

means the annuity was

19:14

in a IRA. I was just going

19:16

to say, so apparently, It gets worse. You're an idiot.

19:18

Put your annuity into a retirement plan. We

19:22

just met with someone yesterday that

19:24

put the money more than this

19:26

in a Roth IRA into an

19:28

annuity. Into an annuity. Yeah, a

19:30

Roth. You just

19:32

want to strangle them anyway. Stop talking

19:35

to people who sell insurance. If they

19:37

have an insurance company name in their

19:39

financial advice title, just run. Run,

19:42

run. They're so nice. Oh, yeah. They're

19:44

so nice. So nice. Okay, question. My

19:46

buddy's kid. Oh,

19:48

somebody's kid. Question is the $110,000. My

19:52

thoughts, put the Vanguard rollover IRA with

19:54

50% In

19:56

an ETF Total Stock Domestic

19:58

Index fund. The five percent

20:00

in the T F international stock funds.

20:03

And then wait. here's the caprice: important

20:05

part instead of twenty five percent. In.

20:07

Bonds put twenty five percent in a C

20:09

D. My thinking is a Cd will never

20:12

go below zero while earning five percent. Until.

20:16

It stops earning five percent then was about

20:18

a year at just what about you get

20:20

about it? A year and a half. Roger,

20:22

I get a year at the I present

20:24

death to that's as good as it gets

20:27

Then What? this? We stop thinking past year

20:29

for some reason our brains don't think anything

20:31

will happen. Passed a year. On.

20:34

What if the rates go down then what do

20:36

you do? So.

20:39

No, I was still use be what allows

20:41

them if you want a ladder them. But.

20:44

You might know not going to

20:46

do so blown the Us know

20:48

most people won't because they arm.

20:52

With. Victims were short sighted. Are we all

20:54

are. Till I would

20:57

still use and we've talked about

20:59

this. I hate to say a

21:01

lot but we have the long

21:03

term. Still shows that bonds have

21:05

made more than Cds. Long.

21:08

Term so believe what you like. A

21:10

note as worked up last couple years

21:12

by the way, A Thomas Ads Ps.

21:14

I enjoy your show a lot more

21:16

than the Guru who always says the

21:18

same things: Gazelle Interest Live credit card

21:20

Free Live Debt free work five jobs

21:23

of the time and tries to sell

21:25

his products nonstop. I think we know

21:27

we're talking about their so I think

21:29

I, I, I, I think I totally

21:31

love me. some Gazelle interests and salvi

21:33

run in with the Gazelles years. and

21:35

are I ah from Donna in some.

21:37

mammoth washes beautiful some members washes ron

21:40

and dawn she writes always a pleasure

21:42

listening to you both to you don't

21:44

as you do another show with rawlings

21:46

my goodness i'm usually it's tom tom

21:49

and down or but now it's okay

21:51

good the get your name though ah

21:53

i'm sure you must be tired of

21:55

recommending a the eg ie that's the

21:58

avant as global equity exchange rate And

22:01

then all the subsequent questions regarding this fund.

22:03

So I apologize in advance for my questions

22:05

to you both about what must seem obvious

22:07

to you but maybe I'm missing something. I

22:09

decided to do a little reading about the

22:11

holdings, fees, expenses before I invested in

22:13

this fund for the next 10 to 15 years. So

22:16

congratulations, Don. I think that's good. The

22:18

.25 expense ratio is okay. I

22:24

noted the inception date of the fund is September 2022. Based

22:28

on that time frame, this fund is a

22:30

screamer. The market has been good. However, wouldn't

22:32

a person want a fund with a longer

22:34

track record? Oh, I love

22:37

this question. It comes up all the time.

22:41

But it's

22:43

based on some flawed assumptions.

22:46

It's based on actually a flawed system.

22:49

And the system is there are

22:52

skilled managers, that there

22:54

are skilled money managers and that before you

22:56

can tell if they're skilled or not, you

22:59

need to give them some time to perform

23:01

to show how well they perform

23:03

or how poorly they perform. In

23:06

the case of an avantas or

23:09

a dimensional or a vanguard or

23:11

fidelity or Schwab index, anything

23:14

that is rules based,

23:16

that is not hunch

23:19

based, it already has a

23:21

track record based on the track record

23:23

of the assets that that fund restricts

23:25

itself to. So in

23:27

other words, the rules, you

23:30

could look back at indexes and say index performed

23:32

about this way for a long period of time.

23:34

So therefore the fund should, if

23:36

history is a guide, perform this way. And in

23:38

the case of avantas, they have certain rules. They'll

23:41

tell you what the rules are. They

23:45

overweight small companies. They

23:47

overweight value stocks undervalued assets.

23:50

They have to meet certain criteria to

23:52

be included in the fund. They

23:54

can't be like a new offering. They can't have

23:56

filed for bankruptcy. They have to, they have to

23:59

meet a lot of. of criteria as long

24:01

as they are within those rules, they

24:03

are in the portfolio. So

24:05

you can look back at a portfolio

24:08

based on those rules and know how

24:10

it did. And this is where

24:12

the confusion comes in. I believe people when they

24:14

buy a fund think that, well, it's only been

24:16

around a year and a half. And

24:19

shouldn't I wait for the manager to see how

24:21

he's going to do which stocks he's going to

24:23

pick, how he's going to decide around markets? That's

24:25

the point. So we're not waiting

24:27

for seasoning for some new 25-year-old who's recently

24:29

new to Wall Street to see how well

24:32

he understands interest rate changes, et cetera, has

24:34

nothing to do with it. And

24:36

I have to make a

24:39

confession. I used

24:41

to be one who believed

24:43

that active management could potentially

24:45

add value. And I got

24:47

a lot of that from people like

24:50

Peter Lynch who had a tremendous track

24:52

record with Fidelity Magellan. And

24:54

so I believe that past performance might

24:56

be indicative of future

24:58

results. But all of

25:01

the academic research says that is not

25:03

the case. As a matter of fact,

25:06

those funds that performed well over

25:08

the last five or 10 years

25:11

tend to be underperformers going forward

25:13

based on multiple studies. And Peter

25:15

Lynch's track record, I believe, has

25:17

been tied much to the asset

25:20

class he was in. I

25:22

guess smaller companies, that kind of thing. All right. She

25:25

has one final. Donna does says, I believe you...

25:27

I don't believe you ever hit on the fact that there is

25:30

a potential capital gains of 3% on the

25:32

fund. Not

25:35

to you. I was trying to figure out

25:37

what you were talking about. They're

25:39

not retaining capital gains and passing them along

25:41

to new shareholders. No, no, no. You

25:44

buy the fund, that is now your cost basis.

25:46

At whatever price you sell the fund in the future, that

25:49

is the amount on which you will

25:51

have a capital gain or loss. That's

25:54

it. Yep. Okay. They're

25:57

not retaining gains to distribute ETFs.

26:00

do not distribute capital

26:02

gains to shareholders. They accrue them.

26:06

Because of the way they transfer the securities back

26:08

and forth rather than actually selling them inside. They

26:10

have kind of a warehouse where they go get

26:12

more or less. That's good. By

26:15

the way, by the way, you like that? Okay,

26:17

pick one out. Costco warehouse. I'll take two of

26:19

those, three of those. Before we run out of

26:21

time here, I want to do say, I want

26:25

to do say, do say, uh,

26:27

we've kind of caught our breath from retire meet

26:29

now. So we're ready to talk to more of you.

26:31

We kind of took a little time off, but if

26:34

you want our help. Um, and

26:36

by the way, I'm now taking Saturday meetings again.

26:38

I got one next Saturday. So happy to do

26:40

it again. No, I'm going to do them there

26:42

too. Why not? Um, wait a minute.

26:46

Is that, that's an elephant

26:48

there. Ah, so hunt it. Um,

26:50

so give us go online, go online,

26:52

get some help. Look at your plan.

26:54

Look at your portfolio. We talked

26:57

to you free. No obligation. No sales, uh,

26:59

push sales pitch. Push. Anyway, maybe it's

27:01

time for the show to be over. You fell

27:04

apart right at the end. So you can edit

27:09

this out. No, you won't. No, no,

27:11

no, I run it raw. I'm just

27:13

going to put it on repeat. So

27:16

go to talking real money.com, click

27:19

on meet an advisor. I would

27:21

love to talk to you. We have a lot of advisors

27:23

who love to talk to you. Don would not like to

27:25

talk to you, but go ahead and make a meal. I'll

27:28

talk to you on the road trip. That's

27:30

true. But you got to work for it. I

27:32

got the logo, the road trip logo just finished

27:34

it. It's a great one.

27:36

It's a great one. It's going on

27:39

the side of, uh, of,

27:41

as you call it, the silver bullet or

27:43

as we call it Stella, the excella Stella.

27:45

Why wouldn't there not a whole lot of Excel

27:47

there, but okay. We'll see. No, that's its brand.

27:50

Ah, brand is the Excel.

27:52

It's from the seventies, the

27:54

eighties, seventies to eighties. Yeah.

27:57

Um, so, uh, anyway, thanks for being there. Tell.

28:00

friends, acquaintances, family members,

28:02

enemies. Just

28:05

run up and down the street shouting

28:07

talkingrealmoney.com, talkingrealmoney.com. Send questions in there. Call

28:09

us on Saturdays from 3 to 5

28:11

Eastern at 855-935-TALK. There's so many ways

28:17

you can annoy, I mean talk to us. I'm

28:20

done. Tom's over there. Oh by the way, the population of Bellevue.

28:22

150,000. 158,000. I was close.

28:24

I said 200. I was shooting. Thanks

28:31

for being there. Tom and I hang

28:33

out all the time talking RealMoney. The

28:59

podcast is not trying to get you to buy or sell

29:02

any financial products or securities.

29:26

Instead the program is provided as a public service

29:28

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29:30

advisor. Do you see a

29:32

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29:34

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29:39

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29:47

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29:50

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29:52

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29:54

or legal advice and nothing either stated or implied

29:56

here should be inferred as providing such advice. Thanks

29:59

for listening. Please visit talkingrealmoney.com for more

30:01

information and important disclosure related to performance

30:03

of any specific index or firm quoted

30:06

in this document. Is anybody

30:08

still listening?