Well, good morning, and thank you for tuning in to Let's Talk Money on eight ten WGY. I'm John Malay and I'm going to be your host for the next hour. I'm a certified public accountant. I'm the chief financial officer, chief operating officer, and a wealth advisor at Bouchet Financial Group.
I want to thank you for tuning in with us this morning. I'm sure, like myself, many of you are still digesting the news out of Pennsylvania yesterday late in the early evening, I think around six o'clock with the I guess what's being called, you know, attempted assassination of former President Donald Trump and certainly, you know, tragic news there, and obviously information is developing, but you know, it's just tragic, and it's something that you know,
quite frankly, is just cannot be tolerated. And you know, regardless of political affiliations, you know, I think as a nation, we have to do better and we have to come out denouncing this, regardless of who you support. I mean, you know, we're a great nation built on the strength of democracy and the ability to disagree, but disagree in a peaceful
manner. In this is certainly anything but that and you know, luckily mister Trump is okay from what I everything I've read, but there was loss of life and and I'm sure for anyone at that event, you know, it's just got to be tragic. I mean, I couldn't imagine being out an event like that where you're you're, you know, expecting to support your candidate and and then that kind of tragedy unfold. So, uh, you know, I'm not gonna go you know, in depth and a lot of thoughts
on that, but just you know, it's tragedy. And I hope you know, as a nation, you know, things like can can really go in multiple directions. You know, this has been you know a lot of controversy and you know, with this campaign to start with, and so hopefully, you know, hopefully maybe this will be looked at as an event that this has gone way too far and maybe de escalate things. Certainly there's always
the potential for it to escalate matters. I hope it does not. I hope, I hope cooler heads prevail, everybody denounces this and we figure out a way to say this, this is rock bottom. We cannot have this kind of violence at at the national stage. It's just it cannot happen. We have to do better. So again, thoughts and prayers are with everybody involved with that, and you know, I know the Secret Service and law enforcement is doing their best work and we'll get to the bottom of this.
And so again just want to make some brief comments about that. And again hopefully this will not ask late in any way. And as a nation, you know, we learn from this and do better. So and again as there's more information developing and I'll be learning more. So I certainly at this point have been reading a lot last night and this morning. But as you knows, as all of us, information is developing and so certainly tragedy. So again I appreciate you tuning in with us on this beautiful July morning.
The sun is shining, the temperatures are going to be in the low nineties, so another great day in July. So I'm looking forward to get out there in going to be enjoying the day with two of my daughters, So looking forward to that. Hopefully you all get a chance to go enjoy the day, enjoy some of this great weather. But again, and to appreciate you tuning in this morning, I encourage any listeners, you can call in with questions. You can reach me at eight hundred talk WGY. That's eight
one hundred eight two five five nine four nine. So this morning, we're going to talk about the market, some of the recent economic news, uh, some financial planning topics, and and any questions that you have. So I certainly again encouraged listeners to call in with questions. That's what we're here for. And so start with market update. You know, the strong week in the markets last week, and you know, had some very positive economic
news on the inflation front. CPI report came out on Thursday, lower than expected, showing inflation is starting to cool, and that is what the Fed has been clear they wanted to see. And you know, markets markets reacted reacted strongly and uh, you know, so what we saw on Thursday,
uh, I'll see for it was almost a tail of two weeks. First part of the week, you know, the Nasdaq was uh was up up nicely, uh first part of the week and uh, you know, driven by some you know, strong strong performance from some of the tech companies. But you know, the CPI news really signaled, you know, to the markets that the Fed is probably closer to cutting rates than they were a month ago, and what we saw was really a rotation out of tech sector into
small and mid calf stocks. And so what we you know, we've talked about the market concentration, you know, the Magnificent seven and how they've impacted so much of the if it's such a big part of the performance of the S and P. Well, now it was the stage for the other four hundred ninety three companies, and obviously that's being a little facetious, but you know, so we did see a rotation from tech into small mid calves and
saw some very strong growth. And you know, on Friday, you know, we we hit inter day highs for both the S and P and the Dow. They give up a little bit of closing, but still ending the week positive. In addition to the positive having news, we also starting you know Q two reporting season, so we had some banks start to report earnings. First up is our you know, some of our financial institutions. So
for the week, you know, very positive week. S and P gained almost one percent just coming into point nine NASDAC For the reasons I discussed about some of the rotation out of tech rose only zero point two percent, but the Dow climbed one point six percent and the Russell two thousand. You know, again, our small cap stocks up six percent for the week, so clearly showing that the impacts of that rotation out of tech into small and mid
cap. You know, on Friday, we saw the first of earnings reportings for the quarter, and as I mentioned, you know, banks, some of our large banks were first up, and you know, you know what, I think, we can't read too much into the earnings we're seeing out of banks, and certainly, you know, the next few weeks will have more and more companies and sectors reporting. You know, banks are in a tough situation right now with a really a you know, a narrowing of their
net interest income, which is significantly impacting bank earnings. And you know, some of the larger national banks have the ability to offset some of that margin compression with with fee income, you know, whether investment banking income or other income. But it's certainly, you know, across the board, you're seeing almost every bank have a you know, a contraction of their net interest income, which you know, remember that that that's the biggest part of their income
statement, that's where they make their money. It's really the difference between the interest they charge on loans, making it very simple, and then what they pay on deposits. And you know, as consumers, we've demanded that we get high yield on our money market rates. We we've shown that we will
move money right and banks saw that. Banks saw if they weren't matching rates, if they weren't increasing the deposit the rates they are paying on deposits, depositors were more willing than ever to move those deposits, and whether that was to bricks and mortar banks or to online banks. And so what banks had to do is if they wanted to keep their deposits, and they want to, they had to increase their rates. And so that rate there increases their
cost and kind of causes that margin compression. So certainly seeing that play out in some of the bank earnings, seeing it more so in the regional banks, just because the regional banks. Although most regional banks are trying to figure out how to add fee based income to really diversify their revenue stream, they seemed to be more impacted by the net interesting compression. So I think what we should remember there is, as consumers who've benefited from those high deposits.
You know, we do have to realize and I'm gonna talk a little bit about this cast trap that that some people are finding themselves in, is those deposit yields will go down, you know, as the Fed starts to lower rates. And I think I think universally economists believe we're in that cycle where we're gonna we're in this pausing cycle where next up is rate decreases. I think the thoughts of a rate increase are kind of beyond us. It's just a matter of when. So when those rates come down, you know,
the deposit rates will come down as well. And you know, as consumers, we got to be careful because you don't want excess deposits fluctuating and missing out on the opportunity to grab some yields. So so again, a great week in the market, you know, here looking at you know, recapping
where we are year today. Not only you know, a good week for the S and P up almost a percent, almost up eighteen percent year to date, NASDAK up almost twenty three percent, the Dow up over six percent, the rustle Tooth really all benefiting from this past week up six percent as well. And we're starting to see bond yields come down, you know, the ten year treasury, you know, drop down to a four point eight
percent yield. So starting to see, you know, is it we seem to be getting closer and closer to the thoughts that the Fed is going to get ready to cut rates. We're starting to see yields come down. So strong, strong week in the markets, and you know, so the question now obviously is you know, where do we go from here? You know, and I will say, you know, our chief investment officer, Ryan
Bouchet, and Polo La Pietra, one of our portfolio strategists. You know, we have webinars we do for our clients and and this week, this past week, we did our quarterly update webinar, and I highly encourage individuals to go to our website Bouchet dot com and you can see a recording and of of Ryan and Paulo's thoughts. It's just a great recap of really the first half of the year. But also, you know our outlook and you know, we're still very bullish on US equities. You know, we do
recognize that, you know, there's always some potential for drawback. You know, we've got to remember that an average year we see almost a fourteen to fifteen percent drawback from Pete de trough. So if we saw a drawback, that would not be unusual or not be out of the ordinary. So but we're still very you know, bullish. But there are obviously, you know, some headwinds ahead. But but there are always our headwinds ahead. And you know, we always like to talk about there's always reasons to to get
out of the market, and you know, no different now. I mean's certainly you know, you know the concerns about election year. And you know, one thing I'll say is Ryan in his presentation if you go to the web the webinar, the recorded webinar did a whole section on, uh, you know, the impacts elections can have, and you know, to cut to the chase. You know, the markets do well regardless of whether it's
Republican Democrat. And certainly, you know, some turmoil leading up to election, if or if there's any you know, uh, you know, oddities after an election certainly could cause some some short term volatility. But in terms of long term you know the impact of red or blue. You know, the markets do well in both. The companies figure out you know, certainly, you know there could be different tax thought right and motivations from either party.
But but again, individually, you know, companies figure out how to earn make earnings regardless of who's in the house. And so I just highly recommend if you've got some time, it's about, you know, forty five minute presentation, some great charge, some great conversation, So definitely go to Bouchet dot com check out our second quarter webinar and you'll hear some thoughts. But you know, the other thing you can hear about is a lot of
conversation on fixed income and you know fixed income. Fixed income has been an underperformer for the first half of the year, certainly with interest rates, you know, no real movement on fed rates that has you know, costs really where there's been some underperformance there. But I think we're set up, you know, great for the second half of the year really for a bond rally, and you know we'll talk a little bit about that in a minute.
We're going to take a quick commercial break, so please stay tuned and we'll be right back with Let's Talk Money on eight ten WGY. Good morning, and thank you for staying with me through that quick commercial break. Just had to get a quick drink of water there as doing a lot of talking, and I will say I definitely suffer from some allergy. So having a chance to wet the whistle there certainly is well well needed. So I encourage listeners
to call in with questions. You can reach me at eight hundred talk w GUI. That's eight hundred eight to five five nine four nine. So given a wrap up of the markets, and again very very positive week in the markets, you know, driven largely by some positive inflation news, you know,
CPI showing that is starting to cool down certainly. Fed Chairman Joan Powell has been very very consistent that they're gonna it's gonna be a data driven move on, move on any kind of rate reduction, that they're going to be patient and they want to see more data. And well, you know, since he made those comments after their their last meeting, you know, they've
gotten several rounds of data. You know, a week over a week ago it was the June's job report, and that was some positive data showing you know, a slight uptick in the unemployment, still some solid job creation, but certainly cooling off, and also a narrow in which is pretty interesting. It was a very narrow increase in jobs. But but if you think about what the Fed's looking for, a big check there jobs, you know, showing that the job market's cooling, wage growth is still there but slowing down,
and the unemployment ticking up. And I will say that was a little bit of unexpected uptick. You know, FED has been keeping you know, they're really projecting a four percent unemployment rate. It ticked up to four point one percent. Not a big concern, but certainly you know, certainly prompted comments from Powell that you know, they have a dual mandate and it's not
just about keeping inflation. It's also about maximum employment and so and now that things are more in balance between inflation and unemployment, that they're equal footing, they've got their eyes on both. And it's not just about inflation ruling the day. It's really you know, balancing that dual mandate and so so FED seeing you know, the boxes being checked and so, you know, good
news on that front. They'll be meeting in end of July. You know, I think most economists think that there's you know, this FED is because of their patients. It's going to want to see more data, so July may not be the move, but September I think is definitely being targeted as if we continue to see good data, that we will see a reduction in rates, maybe as soon as the September meeting. And whether we only see one or two rate decreases this year, you know, will depend on how
markets react, how the economy reacts to any potential decrease. But as we see you know, the Fed starting to uh I think, get more serious towards you know, reducing rates, you know, how is that going to
impact the consumer? And I talked about you know, from a bank income perspective, you know, the growth and the money markets and you know, money market funds are they're over now over six trillion dollars in money market which is a staggering number, and you know, it's it's been great for consumers, you know, getting great yield, you know, yielding over five percent on deposits, and if you're getting that out of your fixed income, you
know, you're feeling good. But what we got to remember is that that's temporary, right, that that those yields will come down as the Fed starts to reduce rates. As an interest rate environment, changes, those rates will change just as it was three years ago. You know, you know, you weren't earning five percent four percent, you were earning point three percent, point four percent, you know, minuscule on those funds before. And as
the rate goes down, you know that will happen again. And so it's important, you know, and we're seeing individuals, you know, relying too heavily on that and and and it's understood, you know from a psychology that it's if you can get that kind of yield without any principal risk, that's great. You know you're getting that out of your portfolio, but it's really
taking a real short term perspective on your on your portfolio. And as long term investors, you know, we like to have a much more long term strategy. And so, uh, certainly, if you look at the yields you're getting out of money markets versus maybe what bond funds have produced for the first half of the year, you might be feeling good. But I think you just have to remember, you know, that's about rearview mirror. We have to look as long term investors, where where do things go from here?
Right? And you know, regardless of whether it's jumping in, in, in and out of equities. Uh, the same thing. It's in fixed income. It's really hard to market time. And so you know, I think we're seeing individuals sometimes with new clients where they've got a significant amount of their portfolio sitting in short term cash. And it's not only the and there is you know, there's a purpose for cash, there's a purpose for
bonds, and there's a purpose for equities in a balanced portfolio. But what we've seen and understood, you know, with the volatility of twenty twenty two, where both stocks were down, bonds were down, really no asset class was unscathed that year. You know, there was a you know, some individuals did flee to cash, and it may have been a part of their
fixed income portfolio that they moved into cash. And now they're in this situation where they're you know, it's being referred to as a little bit of a cash trap. They might have an excess amount of their portfolio sitting in short term money markets again yielding a good rate right now, and they feel good, you know, you say, hey, over the last year, nine months, I've I've had a great yield. I feel good. But now
you've got to think of moving forward. And we're in this stage now where okay, we're we're going to be heading you know, from a from a rate pause environment to a decreasing rate environment, and you know, it's it's a time where you know, we're going to start to see you know, some we feel some you know, potential bond rally and so we think it's you know, from fixed income, we still believe bonds have a place. And again that doesn't mean as we've managed portfolios over the years, and we
certainly did this in twenty twenty two. We we we got out of bonds, we know, on the fixed income we did a lot more with treasuries and some alternatives. But we feel right now is a great time to be in bonds. Remember, as as holding a bond or bond fund, there's an inverse relationship between the price of the bond and interest rates, right so as well, we've been in this rising interest rate environment that has effective pushing
down the price of a bond. You know, you just think of it, if I had if I had a bond, you know, paying a three percent coupon and now you know rates have gone up to five percent and so on. A new issue. I could get five percent, why would I pay you know, one hundred percent of the value for that, So it was one hundred dollars bond. I wouldn't pay one hundred dollars to get three percent coupon, right, I might pay ninety five dollars to get that.
I'm going to pay a discount, right, So that's forced the prices down. Now. Conversely, right going into environment, now we're going to we expect to be moving from a rate pause environment to now cutting rates. Right those those bonds, their value, their price will go up, their market value will go up. So we certainly feel we're heading into that type
of environment. So if you're sitting with too much of your portfolio and cash, it's time to pay attention to that because you may miss the opportunity to participate in a bond rally. And in the worst case, if you're in a situation where you're hanging on to cash too long and then as rates go down, your yield just goes down and down, and now you don't have
the ability to lock in some good rates. And you know the data shows you know, historically institutional investors do better with fixed income because there's there's less of that psychology. You know. They do a better job of managing the psychology of wanting to grab that constant return that you might get from a short term money market. So we are almost halfway through today's show. I appreciate you tuning in. I want to thank you for being with us this morning.
I hope you are enjoying the show. We encourage any listeners to please call in with questions. You can reach me at eight hundred Talk WGY. That's eight hundred eight two five five nine four nine. You were listening to Let's Talk Money, brought to you by Bouchet Financial Group, where we help our clients prioritize their health while we manage their wealth for life. Again, I want to thank you for tuning in with me on this Sunday morning.
Hope you stay with me through the break and look forward to you calling in with some questions. Thank you again. Well, good morning, and thank you for staying with me through that quick break. I'm John Malay. I'm your host for the next hour. I'm a certified public accountant, the chief operating officer, chief financial officer, and a wealth advisor at Bouchet Financial Group. I appreciate you tuning in with me this morning, on this beautiful July
morning. Again, I encourage listeners to call in with questions. You can reach me at eight hundred talk WGY. That's eight hundred eight two five five nine four nine. I see we have a call from Bill from Grieville. Bill, I appreciate you tuning in this morning. And what question do you have for me? Yeah, good morning. I'm listening to your conversation with about the bond and money mark account. I'll give I'll give you a scenario.
What would you do. I have a significant amount of money and a money market Vanguard money market account and getting a nice buy whatever five and quarter percent and the money is really let me put this way, I'm retired. We go to Florida every year and we rent down there and we're talking about possibly buying if the opportunity comes up. So it might be this year, it might be next year. What would you do with that money? Would you would you buy treasuries? Would you buy the bond? Or what would
you do? Yeah, that's a great question. And appreciate you calling in. And this this is uh, this this right here is you know a great question and looking at what do we what do we want out of different parts of our portfolio, and so you know, I will say, you know, cash does have a place, and you know what we typically use and we call it our cash management strategy. We typically look at two years
worth of cash needs and whether that's distribution. So if somebody's taking required minimum distributions or purchases just like you're talking about, could be purchasing a home, could be you know, funding a wedding, you know, could be any large purchase if if it's happening with that two years, we typically you know, take two years worth of those expenses and put it into more of a cash cash management strategy. And so but treasuries can be a great need for
that. So if if you if you you know, think it's going to be six months a year out, you certainly could I would you know, highly recommend a treasury and it could be a treasury ladder. So you might say, hey, I want I want to look at uh you know maybe uh you know, if you think, hey, it could be within a year, but it might be six months, might be twelve months. Right, What I might do is is maybe stagger some of that money a little bit right. So, I mean with a six month treasure, you're still
getting a yield over five percent, like five point. It goes a little bit down at the twelve month, a little bit below five down to forty five. So I would definitely, you know, keep that into what I would call your cash manager strategy. But I think your treasuries can play a part in that. So, uh, if you are confident, if you're confident it's going to be you know, not within that six months, I
might do a little bit of a treasury ladder there. Well let's say let's say I do put it like a year treasury, and then I need the money within six months, and I like if I bought a bond fund like through Vanguard, I could sell it immediately, and what risk would I take?
Correct? I mean, you know, and that's where you know, I might go with more of an individual treasury, you know, because again you can sell it and and again if rates, if rates do go down, right, you you're you may actually realize a gain on that, and so not you know, not a list not a lot of risk on that in in the type of interest rate environment we're in right now. Okay, all right, I appreciate your time. All right, thank you, I
appreciate you listening. I think a great question, and you know, I think you know what what Bill just highlighted is, you know, cash does serve a purpose in a portfolio, and that is one of the purposes you know, we believe in. Is that you know, I mentioned you know, we have many clients, you know, retirees who might be pulling required minimum distributions, and what we do is set up a cash manager strategy that we you know, we take those money so they're out of the market,
so not subject to market fluctuations. And so if somebody's taking you know, five thousand a month, right, you know, we're taking twenty four months of those distributions putting them into a cash manager strategy. You know. Again, so if markets do go down, we're not in a position where we have to sell holdings in a down market to raise cash for a need that we knew about, right, And so I think that is you know, one of the we believe one of the purposes of cash in your portfolio.
And bonds have a different purpose, and equities have a different purpose, but there is a purpose for cash. And I think Bill Bill's example there highlighted it very well. And I will say, you know, during twenty twenty two, when when markets were not good, and it was both the equity markets were down, bond markets were down, you know a lot of client
meetings. First thing we did is pulled up our financial plan and said, okay, here's either money you're taking out because of distributions, or you know, maybe you identified a need for cash, which could be example of buying a second home, could be again we saw a lot of funding a daughter's wedding, any you know need like that. And then we're able to show clients that hey, that money's been set aside, it's not been impacted by
the downmarket. It's sitting a cash manager strategy really with principle protected, and it just brings a great peace of mind because again, you know, what we're trying to avoid at all costs is having to you know, if markets go down and you don't need to access those those holdings, right, it's a paper loss. And as we've seen from twenty twenty three and thus far in twenty twenty four, we've had significant recovery in all the equity So again,
if we can avoid having to sell in a down market. That's what we're trying to avoid. And that's a proper use of cash. And even though we call our cash manager strategy, it could be putting it into a money market holding. It also could be putting it into a very liquid, secure vehicle like a treasury. You know, So we definitely have held a lot of individual treasuries and really you know, matching the maturity with where the
cash need is. And so sometimes you know, like in Bill's example, he didn't maybe not you know, they know they may need in the next two years, don't know exactly. So with there, you maybe do a little bit of a ladder where you're hitting uh, you know, maybe six months, nine months, twelve months, right, and then at least you know, you're locking in that yield for that period. So appreciate that call from Bill, and I also encourage any other listeners to call in with questions.
You can reach us at eight hundred talk WGY. That's eight hundred eight two five five nine four nine. Yeah. The other thing I want to touch into, which is, you know, it gets to the accumulation of cash that we talked about, is you know, dollar cost averaging still becomes
a part of a conversation. And you know, so sometimes if an individual has been have a significant amount of cash on the sideline and now they want to put it to work because there is, as I mentioned, you know, six trillion dollars sitting in money markets, and many individuals you know, fled to cash and now we're looking, you know, to to get in
the markets. So you know, question comes up about DCA and and you know, there's a you know, a lot of analysis you can look at and really shows that you know, lump some does on average outperform dollar cost
averaging. And really what DCA does do is it kind of you know, it does renew some and reduce some initial timing risk, which is more about some of the psychology of investing, and because it can kind of create this regret risk where hey, I put it in the market, Now the markets go down ten percent, Oh my goodness, you know what did I do? And now as a long term investor, you know, again I talked about it's on average, we're seeing a fourteen percent drawback in any year from
from peak to trough. Right, So that's a normal market movement. But if you just you know, put a took a bunch of money that you had sitting on the sidelines, you might have some regret risk. And so I will say again, the analysis will show you that LUMP some outperforms dc Sometimes DCA does from a psychology just help individuals kind of you know, you
get away from that regret risk. But I will say, our job as advisors, and if you work with another advisor is kind of take that emotion out of investing, right, And and we come back with what we say, Hey, here's what we think is the pure return. Clients have to make the decision really that that they feel the most comfortable with. So but we certainly seeing dcing DCA as a conversation. And again the analysis does show lump sum outperforms and it really comes down to like a risk tolerance, risk
appetite kind of conversation. Uh so certainly having some of those conversations. We have a call from Danny and Vorgel. Danny, appreciate you tuning in this morning, and what question do you have for me? Good morning, Thank you for taking my call, and uh I wish you well to everybody there. Everybody. Thank you Danny. I appreciate and I appreciate that pop.
How's it? Attitude? You're bringing this morning. It's great to hear, so thank you for calling in. Well, I wish everybody kind of had a little bit of that in them, you know, these days it's so easy to do. But anyway, un quick, I retired sixty four, I got a pretty good pension and I'm getting Social Security, and my money's building up. Like I've renovated my house, I bought a new car,
I bought a new motorcycle. And now the money's building up so fast in my checking account, like sixty seventy thousand dollars around sixty eight thousand I got just in my checking account. Yeah, and now like I can be making some money on that, although you know, and it's tough for me to do. And now it's going to sound weird and wrong, like I saved all my life spending my money and now, you know, I didn't know I'd have to worry about money building up, and it's just sitting there and
not at least doing something for me. So what do you think I should do with that? Yeah? I know I should keep some fluid, you know, I want to keep some fluid. You know, I'm not going to buy a Corvette, but that's not going to wipe that out, and and it it just keeps building up. Plus they got about seven hundred thousand in New York State deferred comp ye and and two funds that I know I've got to start drawing on. So Danny, I can see why you're why
you're it's such a good mood. You should be in a good mood with with with that kind of you know position you're in. That's that's you know, those are great. Yeah, you you are, and that's that's a great problem to have. And you know what what I what I would say is, you know, again I'm gonna profess I'm a c p A. So so hold that against me. You know, I'm a big believer.
As a firm, we are in the financial planning process, right, So so I would say this is, you know, knowing the bits and pieces you're talking about, you know, one I would you know, we would
work with you to really put a whole financial plan together. It's part of what you know, it's a it's a real eye opening process, to be honest, and whether you work with our firm or another firm that that does this and and really put all your assets, your liability, all your spending right and all there, and you know what's your what's your face with is a great thing, which is you know, if you've got a pension and you've got you know, to have a pension. And I will tell you
that's becoming a thing in the past, right. You know, most employees working in the workforce don't have a don't have a pension, right, They they've got a four oh one K they've and that means personal responsibility, right because you're determining how much you're putting in and uh so having a pension, it's just a you know, it's a it's a great, great thing to have. And so so what you know, so certainly and again you're right,
you worked hard your whole life and you want to enjoy life. And I will say that is that that is one of the hardest transitions we see with clients going from working their whole life, working hard, saving, doing the right thing, and then transitioning where I don't have money coming in. Now. I might have pension, I might have sole security, but I
don't have a paycheck, right, and then now I'm spending. And so I would say is if you have a you know, one thing, a financial plan does do is you know, when we do a plan, we actually project out to age ninety five for all of our clients, and it just shows you how your portfolio is going to sustain it itself and sustain your spending. So I would say, you know, I really think if you
had that in front of you, it's going to help you decide. But I think you're in a position where, hey, if you're accumulating cash, you know, one I do think there's a point where you know you should have you know, you should have you know, a safety nes right, so six months worth of worth of expenses in cash and then you know, but but you should make those make sure that's in a money market yielding good
money. And then the access you can put into investments that even if you're saying, hey, you might need it in short term, you know, like I talked about with the prior caller, you know, it could be still putting it into a treasury, it could be putting into some other investments, because one thing you don't want to do is accumulate too much cash. But I think being able to look at the whole picture would help somebody advise
you a little bit better. But I think it sounds like you're in a great position you've got again having the deferred comp plus pension plus social security. You know, it puts you in, you know, really in a minority situation where you know, when we see clients with that kind of setup, generally you're right, their cash flow is positive every month in retirement. Instead of needing to pull from the portfolio, they're able to add or quite frankly,
spend more, you know. And so now I will say this as a CPA, it's against my core to tell you to spend more without looking at your whole financial plan. Right, But but it sounds like so I think you'd benefit by working with somebody putting a full financial plan together. And it sounds like you're firm. Yeah, I'm sorry that was rude on you.
Does your firm. The one concern that I do have about the large tunk of money in the fird comp, which I know I'm going to have to draw it down on pretty soon if I'm going to start doing that probably soon, is to protect that. I see, I made some mistakes a long way. I never did a r off, which was so stupid of me, and I don't have anything in place to protect that money. God forbid, Uh, something health related happens to me, you know what I
mean? You know how quick that money will be drawn out of my accounts? God forbid? I went into a nursing home. Does your firm handle stuff like that to put in that plan? And I know it's not cheap,
but yeah, I know it's worth it in the long run. Yeah, absolutely, And yeah, And I would say if you're you know, if you're interested in learning more, I would say, reach out to our our company, and first we just have a conversation, right, and so you can you can reach us, you know, bouchet dot com is our website, our phone numbers five one eight seven two zero three three three three call in and we have a whole process and a whole conversation up front,
you know, is what it would look like. So again, we're fully transparent, we're fiduciary, so we we do what is in your best interest. We don't sell product, and I will say we that's what we do. We work with individuals like yourself, making sure you're in a diversified portfolio, right that matches your risk tolerance, your risk appetite, h and make sure you're comfortable and really set a plan for you going forward. So that's that's really what we do. And Steve's you know, that's what you know.
Steve started this firm, you know, over you know, thirty four years ago. We've been acting as a you know, fiduciary for thirty one years. You know, this is what we do. And and again I'm not saying we're the only one. There's other financial planners, you know, registered investment advisory firms as well, but you know, we're very proud of the work we do. We've got a great team and you and you know,
we work with clients like yourself every day. So certainly, and for what a source, I've never heard any of you guys have been around for a while, you know, and I've listened to you guys for years, and I've never heard anything negative. And you've seen all the key words and
just your demeanor and the way you're talking. You know, I don't want that guy that's going to push me in a direction that I don't want to go, or or try to you know, offer me things that that you know, just understand, you know, what I'm looking for, like you said, and my risk tolerance and give me a professional experience, veteran status, what ever, seniority? Uh? What would be the best options for me? And I'm sure there's more than one. And that's what I'm looking
for. And that's why I kind of like you guys. You know you're already getting my in my in my contact. So so it's a lyrico. So I could I could make a phone call and and and at least have that initial consultation and absolutely and can I deal with like, can I deal
with you? Or do I just have to it? Is it? You know, as the calls command it gets assigned to people or something you know, absolutely no, you know, you could mention my name particularly, but I will say we have we we do have an amazing team, you know what I mean? So and and I will say, you know, Steve started this business thirty four years ago, and I will you know if you've ever if you listen to Steve on the radio, he's he's that authentically every
every part of his life. And we don't sell we don't sell products. And so I say, call in you could you could mention that you you talk to me in the radio and certainly could be a part of that meeting. But I will say. One of the unique things about the firm that Steve built is, you know, we are we function as a complete team. So you know, sometimes with an advisor, you've got an advisor and
then their admin. But here we've got our team at twenty and we've got great expertise, so you know, sometimes we'll pull that expertise in as needed. You know, we've got several uh, you know, tax experts and some other experts in other other areas, and so uh certainly, uh, you know, reach out. We'd love to talk to you and uh, you know, I think we could certainly help you, you know, get on the right path, although it sounds you're already on the right path,
so you're lots to be And thank you. Thank you for that. That's nice of you to say. And I love the way you answered that question. You'd make a good politician. I don't know. I don't know about that. You have to bring the permit, No, you you you handled that really well. And that's kind of why I like you. You know, it's just your your your demeanor. But thank you for your extra time, thank you for your uh uh you're calling it like it is. Uh And I get to make that phone call. All right, you know,
I don't know what I'm waiting for. Yeah, don't wait, just reach out and and we appreciate you calling in. We appreciate you listening, and uh, you know, look forward to reaching out to the office. Okay, all right, all right, and once again, thank you. Have a great day, you too, enjoy the rest of your day. Thank you, Dandy. But what a great caller. What you know, you
bring that positivity, that's that's amazing. And I and I will say, going back to this very first original comment is we all should have that positivity. And and you know I I couldn't agree more. And and I and I do know we all have, you know, different things we're dealing with in life. And uh but I think you know, to bring that positivity
is a great thing. So appreciate that call from Danny. So, you know, there's some great questions and those of the you know, and I will say, you know, I mentioned, you know, working with with clients who newly retired or maybe they're coming up you know, on retirement or newly retired. That is the one of the hardest transitions in life, really going from where you've spent your whole life working had paychecks coming in. You know, I know me personally, I started working, you know, probably
when I was thirteen years old, and you know, mowing lawns. And you know, you just you're you're in that also, you're working hard your whole life. You're you're earning money, you're bringing money in, and then you know, you're trying to be a good saver and save money. And then and then you retire and you don't have a paycheck coming in. Now, you know, if you had a pension, pensions, you know that that's a great thing. But if you don't have a pension coming in,
and you you maybe you're not drawing sol security yet. Uh, and you've got to pull from me. That's that is like a hard transition. And you know it's funny, you know, during the financial planning process sometimes, you know, many times we're showing clients, you know, how solid their
financial plan is and they can actually spend more. Yeah and and uh, but they were you know, they were just so concerned heading into retirement and wanted to control their spending that they pulled back too much and they stop spending money and stop enjoying life. And you know the reality is we we work hard, we work a long time, and then you hope during retirement you get a chance to to enjoy life, maybe travel a little bit more,
spend more time doing the things you like. So, uh, you know, great questions from Danny and uh certainly, uh you know things that we we addressed with our clients every single day. And uh and I will say, you know, I'm a investment management is the primary reason clients hire us. But the financial planning, the tax planning process is such a huge part of it because that financial planning really does set that roadmap and it just gives
that peace of mind that you know when you retire. You know, if you're retiring at sixty five, you know you may live another twenty twenty plus years. You need to have that money last for you. So you know, we are coming to the end of the show. I want to thank you for tuning in with me today. I hope you enjoyed the show. I certainly did appreciate the callers that we had. I hope you enjoyed the
rest of your Sunday and have an amazing week ahead. Please be sure to tune in next week to hear some other great shows and check out our website Bouchet dot com. For great content and information. Check out the investment webinar that I mentioned earlier in the show. Listening to Let's Talk Money brought to you by Bouchet Financier Group, where we help our clients prioritize their health while we manage their wealth for life. I want to thank you again for tuning
in this morning. Hope you enjoy the rest of your Sunday, get out and enjoy some of that sunshine, and hope you have an awesome week ahead. Thank you very much.