To success when you're already established or just starting out I discussed the latest I'm trippin or trends marketing strategies financing solutions and more it's all about giving you the edge you need to succeed this is all the work Barbara Jackson Friday at 6 pm here I am 1220 k.t.o. Deli. Lifestyles unlimited as the real estate investor education and mentoring group that has been taking people by the hand and teaching them how to invest in real estate for over 20 years our students have been so successful at playing wealth and passive income that they have won local state and national investor bureau awards 12 of the last 12 years it's easy to see why I think realty magazine named us the best in the u.s. 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Ok 1st time we read this commercial he got one so I had to get one and we're both in love with this product the glass chair met by the trials and they're unbelievable you know that junkie plastic chair mat on your office chair or at home she's a garbage it's the ugliest thing in your office glass chair mats are beautiful durable each one will support over a 1000 pounds so it'll even told me they've got a lifetime warranty and the way you feel rolling over smooth glass instead of cheap crackling plastic it's like working in a 1000000 dollar office and it's your office and you got to mention this shipping is absolutely free salute lifetime warding scratch resistant stylish but trouser glass chair match you can get them at the. Office superstore you've got to order them direct every trial is a dot com slash life that's v. As in value i t r A's easy Eva tries a dot com slash life you'll want to remember that website there's a discount code waiting for you for 10 percent off only ever tries a dot com slash life summer is here and so are the bugs and other Pass Don't let your home or business be overrun this season with unwanted intruders forget about throwing your money away on those harmful toxic chemicals this season plugging past very good hey I'm Scott from plugging past Ferrari this summer turning your house wiring into a hostile environment for rodents and other one of the pests effectively driving them out the cyc humane way without the use of toxic chemicals designed to last for years it will save you a ton of money now best seller plug in press very pro covers up to 4000 square feet now that's fair dinkum the programs with a 20 percent discount when you use promo code save 20 that's promo code save 20 for 20 percent off or yours online today at Go test free dot com That's Go test free dot com prime my coat save 20 Thanks brain regret plugin and forget sponsored by New Focus Financial sponsored by New Focus Financial the views and opinions expressed in the program are not necessarily those of this radio station or its sponsors and should not be construed as legal tax or investment advice you should always consult the appropriate advisor before making any financial decision All rights reserved. What if you'll believe there's a new focus on work with certified financial planner Chad Burton drawing from his 20 year background in finance and investing to help you make sense of your money back because well get a new focus on personal finance welcome. Wall Street and the. Now you're host for a new focus on wealth jabbered. Coming to the show I mean. If you want to call us on the air it's 805161220 that's 805161220 or even better than money question for the show taxes insurance retirement plan estate planning investing basically any money question him besides individual stock by older cell I think that's a horrible idea for radio these days because things change quick but Burton dot com . Check out the website Fred Burton dot com got blogs and podcasts and everything else are easier to find their own as well as or events and things like that so check out. My son sends me a text yesterday Mila day I'm in between meetings and. You know he just reads and regeneration. And you think he's on his phone all the time but he's actually not on Instagram and kids are on Facebook at all anyways and they're very rarely on Instagram Anyways it's stab chat but he just reads and reads in region articles by the b.b.c. And all these other places that he sends me a text he says and he's in a personal financial planning to reprogram it Texas Tech so he wants to be in the business and he sends me a text to find it mysterious Trump appointed a yellin ist to the Fed and that they're lowering rates right after Trump attacked them. And I just responded back you know it's kind of been telegraphed and it's a tough spot for Powell to be in because. Even. Let's let's say the feds are looking at the data let's see how it was looking at the data and seen the slowdown and trying to ignore tweets and other things like that. Even if he was he it's like a no win situation that he was put and I feel really bad for Powell because. If the feds want to do their own thing and leave rates as they are already low and the economy starts slowly go into recession he would have been blamed but he's already seen the data and he was already considering lowering rates and most of the members were considering lowering rates now looks like they've caved under Trump's pressure so it's a tough situation to be in because they're looking at it and you know. On one hand you have very low inflation you have a really low unemployment course that always happens to it you know. The peaks. We have a little bit a sign a wage inflation but most measures of growth like the Institute of ply management another measure to product to Vittie and things like that are over 50 mean expansion now the numbers of come down though are in a lot of those different economic. Measures of economic growth and productivity but they're coming down the g.d.p. Is less than 3 percent no. One was 3 point one percent. So there wasn't a change where it was typically revised it stayed 3 point one percent but look trade wars are causing a global slowdown and some uncertainty. And we do have a bit of an earnings recession. Because we have now gotten past the effects of the tax cuts for corporations and it's true look at what's happening and there's a big split I mean you guys technology crushing it right now in terms of revenue growth in earnings but the s. And p. $500.00 is pretty mediocre and Trump is right we do not want to strong dollar right now interest rates are so low around the world. Central banks have caused a big problem a big problem and it's like a fight to who can have the lower interest rates some countries have negative rates to spark in their government bonds and I don't know what that means I don't seriously if you're going to invest in a government bond that has a negative rate are you paying the government or does it just eat away at the value of the bond I don't even know you imagine that the Treasury is repaying negative rates doesn't even make sense but we don't want to super strong dollar right now emerging markets definitely don't want to super strong dollar that's why they struggled so much last year because our rates were so much higher. So it's a crazy spot to be and. We're having these issues tax cuts budget deficits continue to grow and people you need to get out of your echo chambers and if you don't know what that is if you're on Twitter and Facebook and you're dealing with political discussions 1st of all keep your stupid political crap off of Facebook that's why all the kids left Facebook don't go on it anymore because it's not a spot to you know be on your soapbox for politics but if you do that you're to get stuck in an echo chamber on Twitter or Facebook but what that means is that if you have a strong opinion of something. All you're going to get fed because of algorithms and everything else is people and articles that 100 percent agree with you or 100 percent disagree with you. To basically to kind of frustrate you and dig your feet in deeper on your beliefs and that's why people really can't talk all that's what people are ending up on the fringes and nobody's coming into the middle and what the middle means is I look we have some major issues not maybe my kids timeframes are definitely my grandkids timeframes of government debt and spending. Problem here in the long run and the only one that I thought that's not during the last term but Paul Ryan and look I'm middle of the road I voted for both sides I 5 trying to find people that are fiscally conservative here. And Paul Ryan puts a You Tube videos in the past explaining government debt issues. And we've got the budget deficit continuing to grow we have biggest tax cut that I've seen in the 25 years that I've been in the business and it's kind of blows my mind look when I got into the business nearly 25 years ago capital gains taxes were 27 percent. Now there is a 0. And a 15 percent tax capital gains bracket like a married couple finally jointly dead no other income even if they're just taking the standard deduction and all of their income was only from capital gains it's like. North of 90 grand that they can take and pay 0 percent taxes essentially federal level who taxes are very very low yet we have an aging population thank God for the Colonials. Large population of people that are finally coming in the workforce pain into Social Security and things like that. But government is out of control when it comes to spending any comes to school just knowing how money works they just don't get it and now the politics is the politicians are playing towards the fringes on both the far left and the far right and the answer is always in the middle and people really can't have discussions anymore it's frustrating I was even to go into this but I got kind of sidetracked It's the morning whatever. But getting back to interest rates I believe rates are so low here but what they do doesn't matter in terms of changing the direction of the economy or what is going on. Oh it's insane and what the Federal Reserve does in terms of interest rates if they lower by a quarter or half a percent it's going to take 6 months for that to really kind of flow through the economy and when 30 year mortgages are at 3.75 percent or lower even for jumbo situations is it really going to matter. It's crazy to think Advisor dot com saying the swaps market is showing traders price in a nearly 325 basis point cut by January and another quarter point reduction by the end of 2020 so the that means that you know they're going to be fighting a recession here. So if the Federal Reserve now doesn't deliver that at some point that's going to cause a correction in the market that's Ok if you're you know 20304055 years old if you're 65 and you're way too overly invested in terms of your risk tolerance you don't have some fixed income and some cash so you can be ready to retire it's an issue for everybody else corrections and recessions are always buying opportunities dollars out there warning about debt like gold again. Or do talking about positively about gold again. You know and gold is been a traditional hedge against inflation which I'll talk about next segment but. It's not. It's not that bad yet we'll talk about it after the break if you want to get your e-mails to me content for the show chatter chatter and dot com take a quick break we'll be right back. Planning for retirement may seem complicated but focusing on just a few key issues can help provide the foundation you need to enjoy a secure future on Aug 16th Rob Lakin sea of peach Chad Burton will lay it all out for you during a special presentation at the Money Show San Francisco learn the $10.00 pillars of retirement income planning from understanding your expenses to avoiding the ira tax traps these 10 pillars are essential to creating a lasting stream of income in retirement go to New Focus Financial dot com to download your free 10 pillars of retirement income planning resource and join Rob Black and see if peach Albertan at the Money Show or they'll break it all down for you you'll need to register for the Money Show k d o w dot biz it's free and plan to be there that Friday morning at 1045 for this 45 minute session with Robin Chad Be sure to bring along your 10 pillars of retirement income planning resource go to New Focus Financial dot com and click the resources tab to get started today that's new Focus Financial dot com Welcome to Office Depot I'm going to help you we're getting her organize her back to school yet got my green notebook in folder for chemistry I mean science is always green because of course right because math always has red notebooks right because blue notebooks are for any English and yellow are for social studies and are. And are we to insist. No in everything on their list from the advisors at Office Depot Office not this week or Buster school that for 10 dollars 10 dollars in stock or online at Office Depot dot com when it connects with data what are you doing Crimean for college I'm the one going to college here we need to figure out how we're going to pay for it all discover student loans discovered those student loans Yeah they're $1.00 of the top private student loan lenders in the country it takes 15 minutes or less to apply and there are no fees for the life of the loan best of all I can earn cash rewards if I get good grades really care we still have time to apply and get a great rate so I can just chill college kids still say that right no one says that . Your visit discover student loans dot com to apply to. Day limitations I am j. Foreigner c.e.o. Of Quicken Loans America's largest mortgage lender I've got great news mortgage interest rates have dropped so if you're thinking about buying a home right now is the time to lock that low rate even before you find the home of your dreams with our exclusive rate shield approval the low rate you lock today is protected for up to 90 days while you shop for your new home with a rape shield approval if rates go up your low rate stays a lot but if rates go down you get that new even lower rate either way you win talk to us today at 800 Quicken or go to rocket mortgage dot com to take advantage Here's another great reason to work with us for a record 9 years in a row j.d. Power has right Quicken Loans highest in the nation and customer satisfaction for primary mortgage origination again to lock in today's low mortgage interest rate and get the security of our exclusive rate shield approval call us today at 800 Quicken or go to rocket mortgage dot com for getting power word information visit j.d. Power dot com racial group only balancer 30 year fixed rate loans cover cost information conditions equal housing letter license in all $50.00 states animals number $3036.00 the story of a very special woman just a few knew about her superpowers in a matter of seconds she turned herself into a great mathematician she now has created as a regular person at work but as a superhero at home everyone knows her as Gabrielle and I still call her mom your hero needs you now. P. Is here to help find the care guides you need to help complete with tips and resources at your p. Dot org slash caregiving brought you by the Ad Council. So much that I'm babysitting your kids while they play the jazziest jazz I have ever heard jazz is totally fine. Now it's actually frustrating as the check you're handing me and the days it will take to clear next time to send me money with Sal night out better players that are easily with. Your banking app must have a bank account us to use it as an early warning. Services trade bridge building it brings people together and allow skirmish to move forward building successful bridges between you and your customers can propel your business forward and I am 1220 you can show you how high my Shiels general manager of k.t.o. a Radio program can establish your position as an industry leader amplify your message before potential new customers and build a bridge leading to increased sales and market share at k.t.o. W. The media and marketing professionals here will help develop your show building a bridge between you your company and your customer base who are an effective and affordable on air and online media strategy together let's work to help make you the expert Bay Area people turn to for products and services in your industry e-mail me Mike Shields at Commons at k d o w dad biz that's comments that Katie is let's talk about building a bridge to the next level of success for you and your business Comet's a k d o w dab is. Your listening to new focus on well on am 1220. But a bit of a show you know Stanford certified financial planner. Of 6 other certified financial planner says myself scabbard dot com When you focus on Answers dot com. You can check under. Couple of tabs there's a tab that has the blogs on some downloadable. Right out of the most recent one we have up there is what you need to know about r s use restricted stock. Units the most common type of option now given the bare it's not really an option basically story short if you have our issues and as they that's they become 100 percent taxable so there's no tax strategy in terms of Ok once a vest How long do I need to hold them or whatever it is nothing fancy when you get overweight in the company stock that you work for as the best you just sell them and reinvest now they automatically sell some shares to cover the taxes but you know if you're too overweight in company stock if you're 5560 years old and you have more than 10 percent in your company stock that you are poor and you start trimming in reinvesting elsewhere. Because you do not want to go into retirement that much exposure to a single company. Check out Shepherd dot com New Focus Financial dot com Also that podcasts that are the show that we did last week 6 tests to determine retirement readiness that's posted there at the company Facebook page you can click on that. And since I was logging into the company Facebook page I have to go through my own and it just gets so creepy because I'm sitting there having an advisor meeting with 2 of my advisors in the Vancouver Washington office and our main client service person very there and we have a golf event coming up for clients and campus campus meadows and Camus Washington that's you know 10 miles east of our Vancouver Washington office and. I was talking to Jared one of our advisors who is just phenomenal I mean he's such a great advisor. You know also teaches finance 2 nights a week at Clark College so he's a great teacher that we explain things to people and he's really really good but I'm constantly giving him kind of. Guff about the way he dresses because it's just not good it's really not. And you know 57 Gerrard's even shorter than I am so trying to find clothes especially with an athletic build this is tough for her so I got a big gift certificate to Peter Manning n.y.c. I said hey try the cell and you know or. And we're talking about a.j. And you got to get some new golf shorts for this golf event because he's got these golf shorts that are I don't golf golfing clothes are there they're flamboyant right the kind of crazy. But he has these plaid ones that look more like board shorts slash cargo shorts they don't really look like golf shorts and don't match any of our new focus golf shirts that we have. And know every time I log into social media whether it's Instagram or Facebook. The 2nd thing is these crazy feeds on crazy golf pants and golf shorts I didn't look them up I was just sitting there talking with Jeremy and Bree about golfing clothes and we were joking about it and Sharon pulled up a couple online not and then not on my phone not on my computer but he just stand across and now I'm getting all of these ads for crazy golf clothes. That's just creepy how long are we all going to put up with this right now it's probably through messenger on my phone which I rarely use it starts how they're keeping an eye on what I'm doing but if companies eventually we're going to get to this point where it's either you can't take this information anymore because everybody kind of there's a there's a Finally a major backlash or like in places some places overseas or companies are able to collect this much data from you with cookies and everything else you should be compensated for them to be able to be better at selling the whole world things right it's just crazy. So I don't know how long you know I could put up with that just craziness but the same time I've got an Alexa connected to my Hugh lights connected to my so and so I love walking into my office saying Alexa play chill music in the living room or you know. Good night I'm going to say that and all my lights are going to turn off in my den here so you know what I'm on there when I go in a blackout situation so I love that kind of stuff but at the same time I know you are listening I don't know where he's going with that major 80 this morning as I'm doing the radio show because we started the show talking about interest rates and the Fed and it's basically being priced in that the put a reserve is going to cut rates by at least 3 times this year think of where we were last year when the trade war was so they were coming to an agreement with China and now it looks like it's straight you can have to go up. And then all reverse and we had that September to December correction and then this big big big big big big run up again. So the swap markets are showing that the there's nearly $325.00 basis point cut in by January. Looking at 2 different similar funds that dimensional funds are d.f.a. Funds offers and if they funds really really low cost funds they're kind of the I guess you could say and venture of smart data where they take an indexing approach but they put rules on top of that whether it's value growth profitability and they have really great bond funds to and I like those funds because as an advisor I can get into those funds and know that only approved advisors can. Have their clients invest in these funds so if there's any kind of a change in interest rates you're not going to have retail investors freaking out. Panic selling causing the bond managers to sell bonds that they should otherwise keep to maturity so I really really like that approach to bond fund and dusty right now. But they've got 2 different versions of a California tax free bond fund and one of them the real return fund edges against inflation. And that hedge right now because expect expectations are inflation are so low and any time everybody thinks something's going to happen something else happens whether it's now or within 3 years something else happens. Expectations for inflation are so that the hedge against unforseen inflation is only 15 basis points now what does that mean 50 basis points $100.00 basis points is one percent Ok so 15 basis points. Let me put it in a different way if you're investing $250000.00 in a California tax free bond fund. It would only cost $375.00 per year essentially to hedge against surprise inflation that's. Basically nearly the same income and a hedge against inflation so that's what I was looking at that. That fund then because eventually we will have inflation we have had such low inflation a lot of it has to do with productivity in technology but eventually. It will change not to like I've been saying that for a long long time so come back after the break we'll talk a little bit more about this but. Dalia was warning of against about government debt again the expansion of government debt and he's liking called again of course he has that all weather portfolio whatever he calls or it's cash bonds gold stocks . You know just a basic balance type of 4 portfolio. The debt to g.d.p. Ratio compares a company country sovereign debt to its economic output now for the 1st quarter $21000.00 u.s. Debt to g.d.p. Ratio is 103 percent in Japan that's 256 percent so this is not a tomorrow's problem or today's problem it's a well into the future problem we'll talk about it after the break going to cause Mary 105-1620 or e-mail me chat a chat burn dot com. When you fill the hour of a you to join me at the Free Money Show in San Francisco for our big guest speaker the show will be held at the Hilton Hotel in his Square Friday August 16th the Free at the money shows emphasis crush Friday August 16th and Saturday August 17th at the Hilton Hotel at Union Square come to register again but if it is going back on the register see you on the church in San Francisco. Registrations for our annual gold summit have exploded the live event is now sold out less than 200 streaming tickets remain on Adam Boratto author of the national best seller gold is a better way you can join me for our annual gold summit titled The Great devaluation learn why Donald Trump's attack on the Federal Reserve has sparked another gold boom I'm certain you're going to see gold prices above $2000.00 before the next election I'm going to explain it all on August 14th you've never seen anything like the coming bull market come to this event to find out why text the words gold summits 249-7762 get your free ticket this event is for serious investors with over $100000.00 in an Ira if that you don't miss this opportunity stream it live for free text the words gold summits 249776 that's the words gold summit the 49776 you cannot afford to miss this event text the words gold summits to 49776. That old expression has never been truer than it is today Time is money Hi this is our little scene managing partner of Greenspan book a pulse on a company at our c.p.a. Firm we see you both whether you're selling a business preparing for an i.p.o. grow cut your taxes this year and design a strategy to save even more next year call growth up at 877 c.p. 820064 your tax strategies conference call 877 c.p.a. 2006 Heres some good news for people with a bad back but 1st surety products has 3 important questions for you this occasional lower back pain slow you down would you like more joint flexibility and less every day inflammation Well if you answered yes we want to send you a free bottle of the ultimate lower back relief formula in a 28000 clinical study people taking to capsules a day of the ultimate lower back relief formula experienced a dramatic reduction in lower back pain and greater joint flexibility and nearly every single person got benefits we're not getting it's every day herbal pain relief in a capsule and it's good for you and now it's free just face shipping and call now for your free bottle your satisfaction is 100 percent guaranteed dial now 1803606487 that's 1803606487 call Nell 18036060. For eighty's. Now back to New focus on well on am 1220. Money Question for the show going to put you mails coming up in a few minutes Chad Chad burn dot com That's Chad Chad dot com Are there check out our blog. Podcasts links to the events links towards the bottom now is a link to the company Facebook page New Focus Financial Group. Do me a favor go to the new Focus Financial Group Facebook page click like let me know that you're listening I just posted a picture because you know we got lots of articles and posted at the link to our issues and how to deal with them what you need to know about our issues we have a link to 6 testator in retirement ready at this podcast that I did last week I just posted a picture of me wake surfing with both of my daughters So if you don't know awake surfing is where you drop the row behind a boat you surf and endless waves check it out click like let me know you are listening. What we've been talking about today kind of been all over the place a little bit of a random show say the least but. All of these low interest rates is causing this you know the government debt is continuing to expand. And it's able to happen because people have such a high appetite for bonds because the interest rates are really low but when the idea that rates are going to be cut people think oh I can buy this bonnet generate a return in the bond itself it's going to go up in value because rates are going down bond values were opposite of rates so of rates are going down bond prices are going up if rates are going up bond prices are going down so the government is able to continue to feed their addiction to debt around the world because of these issues because of the way that central banks around the world are dealing with. The economy instead of kind of the economy do it's going to do they're getting involved in again it's just I don't I don't think it what they do with interest rates right here matter a lot it's really just how is it affecting market sentiment the rates are going down that's growth mode people really really like stocks especially when Bonds are pain so low or near 2 percent on the 10 year treasury versus those north of 5 percent prior to the Great Recession of 2007. So eventually at some point I mean by having more and more conversations with people that are really worried about government debt because we have a big tax cut we have an increase in budget deficits and the economy is not growing north of 3 or 4 percent. Thought because of the trade war because they're not easy to when they take a long time to play out and China's in this for the long game I don't think they care to get it done me any time soon hopefully I'm wrong and it gets solved but. It doesn't really matter in my opinion because companies are already starting to change their supply chain and they will be good companies if you can separate invest in a company from what's going on in geo politics because look companies will figure it out they always do doesn't really matter but when you look at debt that countries are taking on it eventually matters it will eventually come back to bite them if they don't do something about it. And people are worried about in the u.s. But look you've got a long way to go to get to 2 comparable to other countries so that debt to g.d.p. G.d.p. Is gross domestic product it's a measure of all goods and services you know produced in a country it's a measurement of growth. And we're not right now hovering around 3 percent economic growth which is Ok fairly mediocre but Ok. So debt to g.d.p. Ratio compares a country sovereign debt that's debt you know issued by the Treasury essentially to its total economic output in the u.s. Is 103 percent Japan is 256 percent and Japan has a major problem because of demographics people are leaving the country people are not having kids. They don't have the millennial population that's supposedly bigger than the baby boom population to fuel economic growth that's one of the reasons why we're one of the best places to be in the world is because of. Our demographics so we have the ability to solve the problem by for not cutting spending but freezing spending increasing the age of Social Security. To 70 or north of that for everyone. And then tackling some of these other issues. So eventually have to hedge against inflation sometime in the future right now it's very very tame very very tame. And a lot of this has to do with bonds are not going to get a 30 or 40 year old to retirement. In support folios unless you can deal with volatility and more consistently rebalance your portfolio growth out of the stock market people can invest like they used to with traditional 60 percent bonds 40 percent stocks and have their money last as long as it used to because bonds are pain a 3rd of what your parents and grandparents earned on bonds and C.D.'s so that means people need to plan on working longer. Saving more to be able to retire and potentially investing more aggressively now if you're going to invest more aggressively more stocks so it's already flipped to I got into the business 25 years ago the more traditional portfolio retirement is 40 percent bonds or 40 percent stocks 60 percent bonds that's already flipped it's way more common to be purple to be 604060 percent stocks 40 percent bonds which is totally fine my favorite mix for retirement this is not a recommendation it's just my favorite when it comes to historical returns and math and everything else is making sure that somebody has 3 years worth of portfolio draws in cash not expenses but if they've calculated I've got so security. And other income sources but I still need 50 grand a year for my portfolio that's $150000.00 in cash the rest of the money 65 percent stocks 35 percent bonds but if you do that on a quarterly basis you need to rebalance and when the portfolio the stock side of the portfolio is up you peel some of that growth off and replenish the cash that you've spent so you can invest more aggressively as long as you're more consistent with your rebalancing and taking some of the house money off the table. But at a great quarter if you're retired and you don't have that 3 years worth of portfolio draws in cash or you have a rebalance debt to replenish what you spent last quarter you should do it now plain and simple do it now because of the market as you go up and you miss out a little bit more upside who cares getting hit with the downside when you need the money that's what can affect you forever and ever and ever when you're forced to sell when the market's down or you panic out because the market's down. Now if I go all the way back to really early in my career when I created this withdrawal strategy I've been talking about with Rob Black on radio since 9099 is back to a study that I read by Professor William brain and. He was. Kellogg School of Management he was a professor there and I sense retire I was even trying to google this article today and I could not even find it but there Alterman allocation when they did a whole bunch of back testing and studies that their class came up with was like the best allocation for retirement if you take 3 years' worth of expenses and you put it in treasuries if you look at you know in fidelity and t.d. Ameritrade or whatever you can buy Treasuries and IRAs and everything else and you're right around 1.8 percent or so right now back then it was a lot higher but they said that it was 3 years worth of expenses in treasuries and then if you put everything else in the s. And p. 500 and as long as you spent the cash when the market was down and yours when the market is up you peel the gains out of the s. And p. $500.00 to replenish and buy more treasuries that was like their studies all to an asset allocation Now I looked at that and said wow that's really interesting because you look at market corrections and and the fact that when the market has a significant decline it's usually followed by huge huge appears and as long as you stay invested in collective it and you'll be well ahead of the game you just can't be forced to sell by panicking or having to pay expenses so that's where this 3 years worth of expenses it was really interesting it made a lot of sense math wise to me and before I got into finance and financial planning I was majoring in engineering and math and I so I was always you know a spreadsheet guy. But I also was working with my grandfather and he was 62 or 63 when we started together and most of his clients were older than them him and they were you know depression era people there was no way no way I was going to be able to get somebody at that age at that point in time to invest the majority of their money in the s. And p. $500.00 just was going to happen so I had to tweak that overall strategy to create the strategy that we use a new Focus Financial. Which is kind of similar sort of 3 years expenses of 3 years where the portfolio draws in cash the rest typically no more than 65 percent growth 35 percent defensive we tweak a lot of the stock investments to make sure that their dividend achievers where they're in companies that pay a dividend increase the dividend on an annual basis regardless of you know good markets or bad markets and so it's tweaked a bit but it makes a lot of sense. Now getting back to what I was going to talk about which is inflation because again you've got you know warning about government debt he's liking gold again thinks eventually of some inflation because of that. He had to get some place to buy gold I'm not a gold bug it to me just doesn't make any sense because people think about it like oh if everything goes bad better investing gold What's that going to do for you I'd rather invest in gold or I'd rather invest in bullets and gasoline right if we're going to go into a whole. You know Mel Gibson type movie here I want my gold and I want my gasoline I guess so I can be able to recharge or Tesla's. But just tips treasury inflation protected securities and having some exposure to that eventually in your bond portion of the portfolio. Is a better way in my opinion to hedge against inflation because if you invest in unconstrained bond funds that allow you to hedge against rates or inflation or they can buy tips treasury inflation protected securities or bonds or pay a little lower rate but the face value goes up when inflation comes into play so not a lot of inflation right now but it's something if you start to you're signs of inflation that you want to have as part of your overall exposure in your portfolio so make sure you keep an eye on that and I said please go to our new Focus Financial Group Facebook page and you focus there's no space in that word so we're just going to chat burn dot com Go to the bottom of page click on the Facebook link let me know your list seen by a liking the page take a quick break we'll be right back. Market dimension is the single most important thing need to know get the advice you need by joining doesn't leave money managers and financial experts including Gary Shilling George Gilder Bruce jumps down and down the money show San Francisco 15 through 17 a real time market analysis and learn which stocks bonds funds and commodities you should buy and sell to build a safer more profitable portfolio claim your free pass at San Francisco Money Show dot com San Francisco. Excuse me yes case you haven't noticed advertising has changed over the years now there's digital you need Salem surround when a customer does a search to they find your business or the competition is your business is contact information accurate and everywhere it should be on the web about the right tools to turn visitors into leads. Presence. Around San Francisco connecting you with new customers. Oh I'm Robert Hill tonight Russell Gray and we're the real estate guys have you been hearing about all the changes in the real estate market lately maybe you're even wondering can you still make money investing in real estate some people may see this cycle as a time to sit on the sidelines while others see it as a great opportunity to learn how to develop your own real estate investment strategy by listening to the real estate guys Robert Hill said Russell Gray are the realistic Sundays at 11 am right here on the Bay Area's business leaders they have 1220 k. T. O. W. 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Income stream probably not something you worry much about when you have a steady job income but as you head toward retirement is your income stream still going to be enough someone who can help his financial advisor Pat for Tucci will you be financially Ok in retirement with enough income you can count on if you live say 30 or 40 more years could happen Pat can help you get on the right track toward retirement as you need to protecting grow your Nasdaq patterns help folks with their retirement planning over 30 years and Associates has offices throughout the Bay Area. Call for a complimentary retirement plan review 804728305804728305 or check don't invest don't forget dot com and associates 804728305804728305 or go to don't invest in Forget dot com securities and advisory services offered through n.b.c. Registered broker dealer member. This is new focus on well on am 1220 k d o w. Going to show certified financial planner want to find out more about me and my team of 6 other certified financial planner practitioners besides myself just go to Chad dot com and Focus Financial dot com. Coming up at the money and then Cisco come up on what August 16th believe it is so check that out and go to our Facebook page New Focus Financial Group there's a link at the bottom of that website as well I just discovered great articles up there the podcast The 6 retirement tests there's a new blog post even at the Facebook page how to deal with everything you need to know and then just for fun I paste posted a picture of me and my daughters both of them serving together so check that out quickly. On that photo let me know you're listening pre-shared it. A couple e-mails out there today that I want to get to time one was from Tommy and Tommy Yes Is it possible to lose your home for medical bills out stand in could they come after you legally is there a way to insure against this will well the best way to insure against this of course is having a really good health care plan right. So that's you know really the best way but there are situations that I've seen where we had one client get a specific type of brain cancer and they spent an extra $150000.00 in one year out of pocket. Whether it was trips to the Mayo Clinic or other alternative sources of care that insurance would not cover and ended up you know getting in remission thank God but man that we've we've lost 3 clients this year to cancer we've lost 2 employee fathers to pancreatic cancer said another client came in last week where cancer returned it's just been tough so what are some of the laws out there and I had to kind of take a quick look at this and Tommy know LHO has the best. Kind of quick article on this doctors 1st of all there is from. Something like that doctors don't usually force a house sale for unpaid bills and he does the i.r.s. . You can work out a payment plan. Some states allow homeowner to Homestead their property keep it protected against creditors other than the mortgage lender so California home said Law 175000 equity protection if you're elderly or disabled now so I'm not sure which angle you're going for so there's kind of 2 different situations if you have. An older couple you know let's say you're on your seventy's eighty's ninety's and one person goes into a nursing home there are specific spousal impoverishment laws that you can do some planning to get one spouse in the nursing home on medic owl and protect some assets for the ill spouse that's one form of planning but for younger people that you know have an issue with health and a loss of income and major expenses that's a different thing so having a health and good health insurance plan and disability insurance is the way you insure against that Tommy very important for people out there jobs shopping what your disability coverage. Put that into your analysis it's not just income it's also benefits so if you go to know low dot com And that's where you can do things like wills and trusts online. Homestead exemption protect your home from creditors attempting to collect the debt so essentially what happens and let's just talk about the California system one where single. If something happens where you are forced to sell a home so yes it can happen before people are you know creditors are paid off a married couple can file their claim of $275000.00 of that equity before the rest of the equity goes elsewhere to learn a little bit about that Tommy and I guess find out if it's a situation is it you know you a friend your age or is it like your parents or grandparents this is kind of 2 different versions of of law you can look at there. The next one is from Andy and Andy I've noticed when on new focus there's a Facebook page and click like just after I said that thanks for listening Andy he says Chad been a long time listener you. Mr Rob Black you guys are the dynamic duo thanks for your edge dedication to educate us a 41 annual income of 100 k. 500 k. In this for a one k. Account nice job of 41 could work any He's got 10 k. Cash in his Roth Ira and he doesn't know what type of funds are e.t.f. He should invest in. Name a couple of funds. As I recall Mr Black mentions f g m and x. Mutual fund is that a right direction to start off 1st of all India $41.00 f g m n x is a genie made bond fund so no that is not going to get anywhere it's an awful investment for a 40 year olds Rothbury your Roth they are your most aggressive. Account because it's it's got to grow it's going to grow tax free and you're not going to use it to well after age 59 and a half so one of the best asset classes to have in the long run if you look at small cap stocks emerging market stocks and just overall total stock markets and indexes that's what should be kind of in your Roth Ira. Because if if we were to go full market cycles and multiple market cycles 1520 years out typically if you stay put and you continue to reinvests dividends and everything else small cap e.t.s. Emerging market e.t.s. Will likely outperform the others another way more volatile small cap stocks 10 percent off the highs. So if there's continued economic expansion they'll typically catch up and exceed large cap stocks but we're just kind of in this large cap stocks are here. So. Wherever your raw Farai is go to the e.t.f. Center look at Commission for e.t.f. Sin go to the direction of total stock market indexes small cap growth small cap value Emerging Markets Dividend achiever e.t.f. Those are all great ideas for somebody Roth Ira where they have more than 15 plus years until they retire. There's other options too I mean there's also e.t.s. That create a growth portfolio where you invest in one e.t.f. But underlying investments are several different e.t.s. Or you can just go to Vanguard or something like that and pick one of the retire or you know 20502060 funds and it's automatically allocated for you and then you just don't have to think about it anymore just get invested stand us in invest on a monthly basis and you'll end up happy and successful in retirement so. You guys want to shoot me an email I love your email and emails it gives me content to show let me know what you want to hear about any topics any questions Chad Chad Burton dot com That's Chad Chad burn dot com. Dot com which is the same place as New Focus Financial dot com You can find links to the podcast downloads blogs. Links to our next events that are coming up it's all there so thanks for listening please tell a friend about the show have a great day. One of learn how to trade and invest in the market discover how to build a successful trading plan for any time friend from current income to retirement security Join us weekdays for our trading rate learn from the professionals how to apply simple rule based strategies to any asset class you'll also get insights on the trip common mistakes of a novice investor that may cost you money and how to avoid that our our trading rate and weekday mornings at $511.00 and 1 pm Monday through Thursday on am well $20000000.00. You see them all around town Cintas trucks and their service reps taking care of customers when companies using task you know they're competent and ready sometimes helps with their fire protection and 1st aid and safety programs and those their peril solutions and helps keep their facility in rest rooms clean in stock so you know those companies care about their employees facilities and image when all those things work together they're ready for business goals get syntax and get ready for the workday Ok deal w. Cold chills and Jose and k 237 G.'s e San Francisco the Bay Area is business leader services Salem Media Group. Well that's our a news I'm Rhonda Rockstro over 40 victims of a shooting this morning in El Paso Texas retail complex from this shooter we have 20 confirmed fatalities and we have 26 wounded they age is and genders of all these people injured and killed are numerous in the ates groups that's Police Chief Greg Allen who just moments ago said the 21 year old white male suspect was taken into custody without incident the suspect is from Allen Texas north of Dallas Mayor De Marco meanwhile said the scene had been secured thanks to a cooperative effort by a lot of people a pass was too strong to be broken by a cowardly act like this one I want to assure that the sure the Opacic community that we are safe we are safe thank you to the o. Paso Police Department and our law enforcement partners for their swift response and assistance also it s r a News dot com The Intermediate Range Nuclear Forces Treaty i.n.f. Agreed to by President Reagan Soviet leader Mikhail Gorbachev back in 1970 is no more NATO secretary ns Stoltenberg says the demise of the i.n.f. Treaty is a serious issue therefore we will react in the prudent others funso way we're not rush to conclusions and we will make sure that with it we do it will do hoodooed us and the lions in a coordinated a measured way u.s. And Russia mutually walked out of the agreement yesterday raising fears of a new arms race u.s. Blaming Moscow for the death of the tree saying Russia has consistently violated its terms for years part of a Southern California beach closed after a cliff collapse near San Diego sending tons of sandstone on the beach combers and killing 3 people was reopened earlier today this is s. Are in news. Baseball season easy to feel. That it's a good thing Matt secured his venture with super Polygram now he can enjoy the snacks as much as the game early. So great to see you it's that time of year when the family made so I cannot get together guys family photo it's a good thing Jack cleans his denture with politics so we can enjoy the whole day with confidence. At Ace We believe there's nothing better than helping kids that's why we've been proud to support Children's Miracle Network Hospitals for over 25 years this Friday through Sunday get our 5 gallon bucket and 20 percent off almost anything if it's inside you donate $5.00 to support Children's Miracle Network Hospitals and like Ace c.n.n. Hospitals are local so the money you donate helps kids near you bases the place with the help the hardware offered out of participating stores on regular price merchandise only additional conditions and exclusions applied for details if you are $85.00 or younger would you like peace of mind and comfort for your family we're finally expense direct with an urgent message for you the average funeral.