Transcripts For FBC The Willis Report 20141110

You. Tell us what these emails uncovered . What did you learn . Well, what we learned from these emails was that this is the first time that General Motors has ever kind of made any acknowledgement they had issued an order, a parts order for 500,000 replacement ignition switches on december 18th. Up until now gm has claimed that no decisions, no action were taken on a recall until at least january 31st. At that time there was a meeting and a decision was made that a recall was needed. On february 7th, the Company Issued a recall, covering 700,000 different vehicles. However now these emails show that that timetable may have changed and decisions were being made as early as december 18th. Gerri jeff this calls into question mary barras testimony which she said oaf and over again i did not know about the situation until the end of january. January 31st of 2014. I want you to hear her statement and tell me what you think she should have said maybe . Here is mary barra. I testified i knew there was an issue with the cobalt in december, that they were studying. I knew there was an ignition switch issue on january 31st, thats what i testified. In december 2013, right. January 31st, 2014 is when i knew about issue. Gerri clear as a bell, january 31st, 2014, what did you learn from these emails . Anything to contradict that . Well, definitely. We learned that there was an order placed for 500,000 parts. Now this was not just a hey, could you fill this order if we made it. This was, we want an order. This is an your again action. And we need you, delphi, the switch maker, to fill this order. There was no reference in gms chronology to the Traffic Safety regulators. There was no evidence in the internal investigation that they backed there was ever an order placed. Gerri well, jeff, bob, i will get you to in just a second but im trying to be clear here. Jeff, that kind of size of an order, is that something that goes up the food chain . Does everybody in the company know that kind of an order has been placed . Well, that kind of order doesnt happen with just lower level employees making a decision. It had to have gone up through management. The question is how high but in this whole gm recall scenario, that is the big question. Who knew what and when and we still do not really have a clear understanding. And these emails show there is still questioning around when did all of this come about, who made the decisions and when were decisions made . Gerri all good questions. Bob, youre the lead attorney representing plaintiffs in this case. Tell me, whats your reaction to this news jeff has just broken . And, where do you take this . What are your clients telling you . That we cant believe mary barra, anymore, gerri, let me tell you. If she was Vice President of Global Product Development and purchasing and supply at this time and they purchased 500,000 parts at a cost of 3 million, which was unbudgeted, so that means they had to go find the money. And the bean counters are going to insist that someone pretty high up the food chain sign off on this emergency order. So if she is Vice President of purchasing and supply and they purchased 3 million worth of supply and she doesnt know, even if you give her the benefit of the doubt on that issue, what [inaudible] she didnt tell the [inaudible] not to report it. Gerri and bob, im going tough but another question but im having difficulty understanding you. Hopefully your audio will clear up. So if you were right, and this is something she should have known about, if the company had reported to nhtsa earlier, are there deaths, injuries, accidents that could have been prevented . How many . If youre talking, if that question is directed to me . Gerri yes it is. There were 85 accidents that occurred from the time they ordered the parts to the time they reported the safety issue to the nhtsa. And one death. So as a fact, if on the day they or thed the part, they simply contacted their customers and said, take all the weight off of your key chainses, lives would have been saved, even if they didnt have the part available, gerri. Gerri unbelievable. Jeff, to you, what do you think of impact will be of this story you put out . Is anything going to happen . We dont know right away however the Justice Department is investigating. Attorneys such as bob are suing the Company Based on claims made from hundreds of thousands of people who claim they have been injured or they suffered economic loss. So were sure this email is going to pop up down the road and in either an investigation or again lawsuits that being filed now. So it is not just something that you can just say, hey, this was Standard Operating Procedure and we chose not to report it. It is something perhaps should have been out there and made aware of to both nhtsa and to others. Adding insult to injury. Thanks for coming on the show. Let us know when you got more. We definitely want to report it. Bob, thank you so much. We want to the but back on set. Thanks for coming on, both of us, appreciate your time. Thanks, gerri. Gerri gas price, good news today, theyre going down again. Gallon of regular across the country dropped 13 cents. 2. 93 a gallon according to aaa. Down 31 cents a month. Great news for consumers. What is the impact for other people in the industry . Gas station owners for example . With us habib shaw, who runs a chain of independent gas stations in ohio. Thanks for coming on. Great to see you. How is this low gas being greeted by your customers . What are consumers telling you . People love it. Save them a lot of money. I bet they do. I bet you hear an earful from them. What does it mean for you . How are you reacting to it. We are just enjoying the time as it goes. Maybe couple more weeks. Is that as long as it is going to last. But then it will be going back up again. Not for very long. Gerri not for very long. So you see gas prices rebounding, turning around, heading higher. How does it impact your bottom line when gas prices are low like this . Do you make more because people come in and fill up more often or do you make less because prices are low . Not really. Doesnt make a big difference. Just brings more traffic. Gerri brings more traffic. That is all it makes. Yeah. So, one of the things i think is interesting about your industry, you cant just make it on gas alone. Even when gas prices are high you have to have other lines of business. Tell us about that. You can see a big change in the industry. A lot of chains are closing down to started the business based on gasoline sales like swiftie. Sold hundreds of thousands of stations nationwide. Small box store does not survive. Gerri so who survives . Who gets to stay . Who has the space to put more merchandise and sell inside. Look at number of gas stations in the united states. 224,000. Today about half that, 121,000. Tell me how you do you think you can continue to business with economic pressures . Do you have a secret sauce there in ohio . Some people are using that, due i dont know what the ohio policy is this. We are paying all the taxes, state and federal. At terminal level. We have to pay processing fee for credit card sales including all their costs. It adds up inhe overhead. Gerri i can imagine. So youre having, you have high taxes right . High state taxes, gas stackses, federal taxes. On top of that, there is a fee that you pay to the credit card operators for people using credit cards, all adds up, eats into your profit. Habib, thanks for coming on the show tonight. Pleasure to have you here. Thank you. Thank you so much. My pleasure. Gerri we still have more, more, this hour including your voice. Your voice is important to us. Thats why during the show we want to you facebook me or tweet me gerriwillisfbn. Send me an email, go to the website, gerriwillis. Com. At the government of the hour i will read your comments, tweets and emails. First while gas prices are going down, guess what . Beef prices are going only up. Next why high demand is overtaking supply and how it is impacting your favorite burger chains. I will be joined by the ceo of fatburger. It is a great place. Dont go away. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. You cant breathe through your nose, suddenly, youre a mouth breather. A mouth breather well, put on a breathe right strip and shut your mouth. 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I never really thought i would make money doing what i love. We created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Starts at 6 30 a. M. On the vo rush hounose. Und here but for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. Gerri beef prices are at record highs and expect them to go higher over coming months. That increase is passed on to you and me from every level to the supermarket to the local burger place. Very popular fatburger was forced to raise prices. With more, ceo of fatburger, andy weider horn. How much have you had to put prices up . Prices are up 20 yearoveryear. That has to be a big burden . The prices are up. It is crazy. It costs you know, as much as 35 over the last few years. Gerri wow. That means hamburger prices are up 50 cents a burger. Even tha doesnt really cover all of the costs. Gerri wow, 50 cents a burger. It doesnt sound like much but if you heat a lot of them it adds up. Prices continue to go up. How will you respond . Do you have higher prices . At what point do consumers say i am not going to fatburger . We have to encourage franchiseeses, because they are franchises. They have 15 margin. They cant absorb 35 price of food. You have to encourage command commodity costs. This is worst time for beef. Even steak diners traded down for burgers because of cost of steak. That is exacerbating the shortage of meat available for burgers. Gerri andy, do you use more filler . Do you make them differently when prices are this high . No. In our brand, we cook to order. It is lean beef. Less than 20 fat. A special grind and special cut. We havent changed anything in our recipeor 60 years. Our sales are up. Were comping up over 60 domestically. For sure our customers understand Commodity Prices fluctuate and they will pay the difference. When prices come down, the prices will be lower for the consumers but you cant change the recipe. Gerri im sure lot of people do. You know, as prices go up, production has gone down. That is because of the problems in the plains, basically. Great plains, there is less production because there was no rain and grass dried up and there was no hay or the hay was expensive. U. S. Production down 5. 3 . Will that continue to put pressure on your prices . So the drought just wreaked havoc on the beef industry, right . For two years they tried to get around it going to shorter, younger harvest times for the cattle and that all has been used up. Now we really do have outright shortage. That will end next summer, that is the forecast anyway. They have been wrong with every forecast for the last couple years. But that is the forecast, that the new cattle will be old enough to be harvested in another year and that should end this drought and price increase or price spike in a year. And you know that is going on everywhere. That is at retail. I see it at grocery store. It goes on everywhere. I want to talk to you been a issue we discuss all the time on that show, and that is changing taste of americans. How americans palate is changing. What are you doing at your restaurants to accommodate people what they say is desire for healthier innings but actually i think they want it to be tasty too, maybe in a way that creates a lot of calories. Couple innings things. We introduced a skinny burger. We eliminated bun. Two beef patties make up the bun and toppings in between. Were getting sales off lowcalorie hamburger. That is it right there. A our regular burger, 59 calories. If you have the skinny burger without the bun and no mayo nays and that is 320 calories. That is lowcalorie meal. Gerri with no mayo. Mayo is a lot right . Gerri what else do you have going on . We have introduced all kinds of chicken and veggie patties very interesting and give you Different Healthier options if people dont want to have beef much you can also, really options to customize these things. We allow you to build the burger the way you want. You have alternatives to save calories or be leaner if that what you feel like. Gerri you can go glutenfree with your bun. Ive been in your stores. Theyre awesome. But im wondering i think this debate over food has gone to lengths that shock folks out there. There is a war on sugar. Not just a war on fat but a war on some different kinds of food. Are we going too far with this . For sure, to some levels we are because looks like, if you want a hamburger, you want a hamburger f you want a milk shake you want a good milk shake. If you want french fries, you want good french fries. It is not the same thing you eat every day. Consumers know. People get caught up for Different Reasons in Different Health fads. Burger, shakes and fries travel well everywhere around the world. Consumers love them. You cant tweak that recipe so much it tasted like a piece of cardboard. It is very important it sticks ought then i cannily what it is and that is true for a number of food groups also. Gerri i have to ask you because youre in the catbird seat in your kind of business. Who shut consumer today . Are they opening up their wallets and happy to spend or are you finding theyre still watching their pennies . Our sales is up over 6 domestically. Were seeing consumers come out to buy burgers and theyre comfortable with it. They have been receptive to the commodity price spikes, surprisingly so. To see the regular burger, fatburger go up 50 cents is a real spike. Like a 10 increase, to the retail price of the either thing weve done, were selling frozen fat burgers in walmart around the country. We had a big spike in home cooking of burgers. That is an angle where you will see customers, say, i dont want to go to restaurant necessarily to pay the cost to have it made for me. If i buy a box of burgers at walmart or somewhere like that, take them home to cook them myself, i will save the markup and labor costs to make it myself. That is trend where we see big spike in sales. Gerri andy, thanks for coming in. Next time in one of your stores i will try the skinny burger. Thanks so much. Thanks for having me. Gerri later in the show we kick off the users guide to holiday shopping. Next honoring our nations heroes. Wall street putting on an event featuring some big names in the music industry. Organizer, along with get this, zz top get tart it, billy gibbons, gives us a preview coming up after the break. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. Health can change in a minute. So cvs health is changing healthcare. Making it more accessible and affordable, with over 900 locations for walkin medical care. And more on the way. Minuteclinic. Another innovation from cvs health. Because health is everything. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. So i can reach ally bank 24 7, but there are24 7branches . Its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. Gerri open enrollment for obamacare stars saturday but the administration well, already trying to down play expectations for second year. A report from hhs today, is estimating less than 10 Million People will enroll for 2015. That is significantly lower than the 13 million projected by cbo earlier this year. Just over seven million folks are currently signed up. Starting today consumers con check out premiums on healthcare. Gov before the site opens for business. Meanwhile, listen to this, on the eve of veterans day the va is continuing to pledge its reorganization. Last week the va said it reduced wait times for ap. Ments by 18 since may. Now the department is promising a singular focus on Customer Service for more than 21 million vets. The va will hire a chief Customer Service officer whose job it will be to make access to va Services Everything from health care to loans easier and faster. We will see if they are successful with that. Many people trying to find ways to honor those who have served our country. Wall street rocks is an annual concert to benefit veterans being held tonight for a preview, were joined by zz top get tartist and wall street rocks performerring, billy gibbons, one of the founders for wall street rocks and managing director of royal bank of canada. Welcome to you both. Great to have you here. Tell us about the event and what you got started and what you want to accomplish . Wall street rocks is Nonprofit Organization started in 2011 and it started out as musicians who quit their, put down their instruments and got their day jobs and it was sort of a what happened to them 25 years later. Lets see if they can still play and entertain us. And we got together. Gerri that worked. And that worked. We started nonprofit. Call it wall street rocks. It has grown. It has been very successful. Since the beginning where it was just sort of executives performing and entertaining we have folks like billy performing now. Gerri lets go there. Billy, why are you doing this . Why are you passionate about the topic . Invitation arrived annual event as it become was quite appealing in the fact that so many of our fellow musicians that we dont get to see very often had time off and this allow us to gather together and collide if you will. Gerri collide. What kind of people do you have . Tell us other folks that are on with you. Warren haines, one of my favorite guitar players served his time with thal man brothers. Allman brothers. John popper, fame must harmonica player does it like nobody else. Will lee, base player, anton figure, they hold down the for the for David Letterman band. A great, great gathering. Gerri you told me when you came on, when you get these guys together they dont play together very often. You want to do one song, maybe two, they want to do five. Two songs became three and now it is five and growing. Gerri so you will be up all night. I dont think anybody will pull them off of the stage. Gerri typically how much money do you raise, how much money do you think you will raise this year . We made a little over 350,000 we given back to veteran charities. We havent projected exactly what total will be this year but it will be in tens of thousands again in addition to the 350. That is great. Gerri they deserve our help. That is absolutely true. Billy, what else are you up to today . What else is going on . Tonight we have a little bit after breather. Chances are there is a an appearance scheduled with not one, not two, but three president s in d. C. Gerri what are you doing . At end of the week. Its a little bit of a secret. Gerri you can tell us. There is honorarium, there is bust being dedicated to celebrate the great works of the czechoslovakia dissident, a great poet. Gerri havel. Is being honored and from there, zz top starts at first of the year. So it will be fast and furious from here on out. Gerri i would not have put those two things together but i get it. Anything else you want to tell us about that youre up to . Well, still loud and fast. Thats what we do. Gerri you will be doing this again next year . Already onboard, is that right. I think so. I think he just said that. Gerri anything else you can add about tonights program . Pause i think is really important. Great fun to have you here. I know you will be packed to the gills. Great fun. It will be packed. Been sold out every year since 2011 and it is one of those fun raisers that is different. It is becoming sort of a Network Event that everyone looks forward to because it is very different. It is not typical black tie affair where people are making speeches and all that good stuff. Gerri much more fun. Much more fun. It is honoring the same cause. Were all having a great time doing it. Gerri great stuff. Thanks so much for being with us. Thank you, gerri. Thanks for having us. Gerri i will outline a list of taxes that were promised to be temporary but guess what, theyre permanent. Shopper season starts earlier and earlier these days. Well have muchneeded shopping advice including where to find the best deals. Stay with us. E. Hard it can be. How. To breathe with copd . It can feel like this. Copd includes chronic bronchitis and emphysema. Spiriva is a oncedaily inhaled. Copd maintenance treatment. That helps open my airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells,. You can get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Sfx blowing sound. Does breathing with copd. Weigh you down . Dont wait ask your doctor about spiriva handihaler. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. I have 40,ney do you have in your pocket right now . 21. Could something that small make an impact on something as big as your retirement . I dont think so. Well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. Gerri the christmas count down is underway and the rush is on for retailers to get your business. All the deals from countless retailers. The willis report is helping you out with our users guide for holiday shopping. When to shop to the hottest gifts for your loved ones. Well show you exactly how to be a savvy shopper without the stress. Were starting out with a bulletproof strategy with our experts. Nerd wallet senior, matthew, ill start with you. So been doing a lot of research on this, a lot of reading and theres a lot of different ideas out there. I would normally expect the best deals to happen at the tail end of the season when the serious markdowns come. There are a lot of markdowns now from what i hear. What is going on . The retailers are pushing the season earlier and earlier. Black friday is more than a month long event than a day. They will spend black friday and thanksgiving 72 percent of their the first store they visit. They want to get their best deals out early and to get the gerri where is the best place to shop . Amazon already has it count down to black friday deals. Thats going on now. Home depot is offering deals on appliances. Thats going on. Sams club has a one day event that will have the iphone for 100 off as well as other stuff. There are deals acrosstheboard. They will start much earlier. Gerri so if i want to shop online, what did i have to know is cyber monday still the big thing or another time . Its actually thanksgiving believe it or not. Thanksgiving will be the cheapest day during november for discounts online with an average discount of 24 percent. And, really again, this goes back to the earlier point of how earlier is better for retailers and consumers. Its a really big day for online shoppers. I was going to add its a big day for shopping via mobile phone, tablets. Over 30 cents to the dollar will be spent on smart phones. Gerri 77 percent of folks say they will shop thanksgiving and black friday. I think theyll be shopping the way youre suggesting. Talk to me, if you would, about just exactly how to do that. I know a lot of people out there are thinking about, theyre going to get ripped off this season. Do i have to worry about losing my credit card number . Whats your advice to them. Thats sounds like a concern this Holiday Season given the hacking situations weve seen. People are brushing that aside and will get out there and spend. Theyre taking a concerted approach to their spending. They know exactly what they want to buy. Theyre tracking their prices following their favorite retailers on social media. While thanksgiving will be a busy day all around, i think black friday will be better for electronics and cyber monday which is a two and a half billion dollar day will be better for clothing and apparel. Well see entire store wide savings 40 percent off. Gerri so cyber monday really becomes about the clothes not the electronics. Matthew, i just dont want to pay for shipping. Whats the best way to make that happen and shop online . The best way to make that happen is to bundle your items together or shop at stores that reduce that minimum like target that will offer Free Shipping on pretty much everything. Check out something called Free Shipping day. Its just being strategic buying things together and plan ahead and strategize your purchases. Theyre saying sales will go up 4 percent this year. Big expectations, but they actually might be right this year. What i think is important for americans to stretch that holiday dollar. Why not buy smart . Whats the best way to stretch that dollar . I think consumers have gotten smarter pretty much going into the Holiday Season. Theyre going to sites like deal news. Theyre using apps like sat wallet. Theyre following their favorite retailers. Theyre signing up for email alerts. They know exactly what they want. Theyre doing additional Price Comparison using red laser. Gerri i saw according to to you guys the proportion of folks who have been using a Price Matching service not too high. Not too many people are doing that. How do you know and, b, explain what the phenomenon is. We put out a harris poll trying to find out more information about the Holiday Season. 72 percent of shoppers have not used a price match in the last six months. People are leaving money on the table. Go to a store associate, go to the register and see if theres a possibility they can get the item they want at a lower price because its did a lower price at a competitor. People should be doing this during the Holiday Season. You can get most of your shopping done at one store if you price match and go got it all for the lowest price the competitor had. Gerri i want both of you to tell me, have you started yet . Vera, you first. I have not. I was just start until a couple days beforehand. I have not either. I put so much effort in to just getting the best deals i havent had time to go out there and shop. Gerri its like shoemakers daughter and son. So close to the business, cant do it yourself. Coming up tomorrow our users guide to shopping continues as we go online at a look where to find the best deals on how to get the best price as more websites start individualizing prices. Have you started your Christmas Shopping . Our question. Log on do gerri will and i say vote on the right hand of the screen. Ill share the results at the end of tonights show. Heres your questions. One viewer writes this. Promotional discounts are out early this year obviously to motivate and cap on folks to spend early. Its working because im spending. And julia writes yep our husband and daughter and i shopping done. A lot online. As we live on a firm. I already have three smaller gifts for our daughter. When we come back, a powerful storm moving into the lower 48 states from alaska, dropping a foot, im not kidding you, of snow in some areas and dropping the temperature by as much as 40 degrees. And were covering your assets with advice on retirement including why an old rule of thumb is being thrown out the window. Heres your consumer gauge with the numbers that mean the most to you. Take a look at those. Gerri technically the recession is over, but guess what happened to those recession taxes local and state governments put in place to raise money in bad times . Of course, theyre still on the books. Thats according to the tax policy center. A total of 14 states imposed what they called temporary tax measures putting in place 25 tax hikes, only nine only nine have been allowed to expire. For example, connecticut where a temporary 10 percent Corporate Income tax imposed during the recession was extended and then doubled. Hawaii used the recession to boost its hotel tax. And kansas boosted its sales tax. My advice, be aware of politicians calling for a dreary tax price. And, meanwhile, another record day on wall street. The dow and s p 500 extending their run of record high closings. That is good news for your 401 k , maybe well all retire sometime, but tonight a rule of thumb for Retirement Savings, used by many of us may do more harm than good for your bottom line. Were covering your assets tonight with wesley wood president of wood financial group. Flint and veronica dagger reporter for the wall street journal. Doug, ill start with you. The 4 percent rule is essentially thats how much money you can take out of your Retirement Savings awes tap that money, not more than 4 percent, not less than 4 percent, but 4 percent every year. Now, people are saying thats crazy, why . That was a guide back in the day when you could get 6 percent on your government bonds a mix of 50 50 mix on stocks and bonds you can take that out safely and still give yourself a little bit of inflation and have the money called capital retention for the rest of your life. With Interest Rates low, a lot of people are questioning whether 4 percent is reasonable. Is everybody off this . And if you dont let me take off 4 percent and you only let me take off 3 percent, dont i need a lot more money. This 4 percent rule doesnt account for someone who has a small portfolio, not to mention market movements that you take 4 percent out in a really down year that will dent your pot of money you have to retire on. It doesnt account for longterm events. At you take out 10 percent one year because of a major health event that will leave you less in the longterm. You want to adjust the amount youll take out in future years. Wesley, people look at this and think doesnt this depend on what im making in my account . How well im doing . When you look out into the future, what do you see for that side of the portfolio . What kind of growth do you expect . Not necessarily a lot of people believe if they made money over the last ten years and perhaps the average six or 7 percent on their portfolio thats okay and all. When they start taking income out of retirement, you cant look at your average rate of returns of six, 7 percent and say i can pull that income out. If the stock market were to go down and you take out a much greater percentage of your income gerri i hear the warnings. Cold swind blowing across my desk perform what should be the general rule . We say that 3 percent is the new percent is the oversimplified version of that. I think what a lot of people do, they start off with a particular amount of money they think they need and they dont adapt if they have extra or if they have a down year they dont cut back. Thats their lifestyle. And the thing they dont plan on are bigticket items. The next new car theyll need eight or nine years in retirement. The reality, you cant predict the Health Issues youll face and there are a lot of other expenses too. You cant predict a lot. Theres a few you can predict or at least have control over. The amount of debt youre carrying over into retirement. High interest credit card debt, you want do eliminate. You want to get down your mortgage to zero. Even if its not high rate. Thats going to drag on your investment and what you have left to tap for retirement. So wesley, i want to switch you want topic, theres been a big debate going on about whether or not investors particularly people in retirement should use actively managed funds or etfs where theyre taking no manager risks. Whats your answer to the question . My favorite answer, you want to look at where your money will be in retirement. You want to make sure that youve got the distribution or the yield to sustain at that those kind of withdrawals. Looking at managed money funds, they havent done quite as well as the s p index. Gerri is that your vote . Index . If youre taking money out of retirement accounts, i would probably be more safe than those. You can look at individual bonds holding it maturity, preferred stocks that youll hold to maturity. Instead of those bonds. Gerri lets say youre not in retirement and youre trying to build your nest egg, get the biggest nest egg as you can. Youre setting aside as much money as you can. Should you be in active funds, should you be in index funds . A mix of both . Were agnostic to that active passive debate. Tdgesz to the individual manager. They may be few and far between there are times when they bring more value than others. There are times when active managers can outperform by as much as 50 percent about, but most of time they only outperfect some of the time. In certain areas maybe not in the large cap blend category, but in other areas where there are discrepancies you can find managers that do. Whats going to bring the best overall return for the risk that the client wants to take. I think the fees eat into your portfolio. Passive is probably your better bet. Depends on the situation, but over the time the amount of dpeez people pay out really hurts their longterm retirement security. Gerri and the debate rages on right here on the willis report. Thanks for coming on the show. Thank you. Gerri still to come, my 2 cents more. Stwo School Districts from minnesota to south dakota taking early snow days as they face heavy snow and plunging temperatures with the rest of the country. What you should expect coming up after the break gerri winter is six short weeks away, but theres already snow in parts of the and unmostly the northwest with much of the us about to get a blast of bitter cold temps. January. Gerri maybe this is good for all the folks selling hats and mittens and snow blowers because we are getting a taste of the chill early. Twenty to 40degree difference between what we should be this time of year. Look at the current temperatures. Seventytwo in st. Louis. Can you spot the arctic cold front . Sure you can. That will drop significantly. Over the last 24 hours, we saw a 36degree drop in north platt and rapid city and that is on the move. As far south as texas over the next couple of days. Winter storm across the upper midwest, yes, they get Winter Weather this time of year to see 12 inches plus even 2 feet of snow thats pretty rare. Taking a look at the Winter Weather advisories we had over a foot of snow. Look at the up of michigan, that area could receive the jackpot of over 2 feet of snow. Look at the cold air thats on the way on wednesday. An 18degree drop or from average in minot, but its 40degree below average for billings. Omaha 20 degrees below average. And this is going to drop as far south as texas. Over the next couple of days, gerri, you think this will be a quick cold snap, theres the freezing mark. Theres below zero as we head into thursday. Even into early next week. We could be talking about colder temperatures. So, you know, bulge up, grab on, were in for a ride this winter, i think. Back to you. . gerri thank you, i think. Hopefully you can stop this and make sure it doesnt get to the east coast. If i could, i would be a billionaire probably. Gerri yes, you would. Thanks so much. Well be right back with my 2 cents more and the answer to the question of the day, have you started Christmas Shopping yet . Gerri tomorrow is veterans day and some of the companies biggest institutions are offering up some free gifts for men and women in uniform. If you have a military id you can reap some of these benefits. A free meal at applebees, california pizza kitchen, Golden Corral is r serving free buffets. Free burgers up for grabs at shoneys along with bottomless fries. Breakfast could be free. Starting at krispy kremes. Ihop offering free pancakes to veterans and active military. Chuck e. Cheese is offering free game tokens do military all week along. A partial list. Its the least anyone can do for anyone who has risked their lives for our freedom. More on vets tomorrow. According to recent surveys, most americans start shopping for christmas in november. As part of our users guide, the deals you get early. Have you started shopping. 24 percent said yes. Seventysix said no. Alas, im part of that group. Be sure do log on to gerriwillis. Com for our online question every day. Well be talking about Holiday Season and gifts. Well be giving you advice on where the deals are. Retailers have big expectations this year what we try to do is show you how to spend less and still get what you want. Its not about the present, the trees and the trimming. It sure is fun, but its not the reason for the season. Thats my 2 cents more. Have a great night. Well see you right back here tomorrow. Charles im Charles Payne and youre watching making money. After taking a shellacking on tuesday, president obama hits the road on asia. China stealing the show from america. What can be done to stop or is it too late . Ed henry joins me from beijing with the latest news from china. Ed. Wellcharles, the markets will be watching the president s trip for a number of reasons. Hes trying to get out of washington after that Midterm Election perhaps get some winds on the world stage today announcing expanded visas in china. More businessmen could be going to america for extended periods of time, maybe s