Let's Talk Money

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 appreciate you tuning in this morning. I'm a certified public accountant. I'm the chief financial officer, chief operating officer, and a wealth advisor at Bouchet Financial Group. So I want to thank you bright and early for tuning in. Here we are the start of daylight savings time. It's a day that I think we all love and we hate, certainly hate to

lose that hour of sleep. I will say I'm a little bit obsessive with tracking my sleep with my Apple Watch, and to just see an hour vantage like that, it's tough to take. But certainly love what's ahead, love the extra daylight at the end of the day. So hopefully everybody remembers to change their clocks, or if they're like me, they have a bunch of digital clocks that change themselves, so that's certainly made it a little bit easier.

But I think we all have that one, you know, clock that's on our stove that is a manual one that we always forget to change, and it takes us a week or so to figure that out. But hopefully everybody's on time this morning. If not, then you're probably expecting a different show than what you're gonna hear. But if that's the case, I hope you enjoy and become a longtime listener. So we have a lot to talk about this morning. And you know, it is interesting, you know,

looking at daylight saving times, it is an interesting concept. You know that we're still doing this and twice a year, and you know, certainly is debate about whether we should be doing this, certainly from a health perspective. I don't know about you, but for me it certainly messes up my rhythms for a few days to a week to figure it out. But I will say it is nice to have the extra extra hour at the end of the

day. And you know, I think at this point, you know, doing a little bit of reading, I think the only benefit really is, you know, there is some economic benefit with daylight savings, that there is some proof that hey, we are staying out longer, doing things, spending money. So I guess as long as somebody's benefiting from I guess we'll continue that. But again, appreciate you tuning in here. We are nine days to the start of spring. You know, I hate to celebrate too early.

You know, I'm a skier, so this has been a very tough winter from skiing perspective, just not a lot of snow locally. But you know, now getting the itch, you know, And Marty was hosting the show yesterday mentioned golf courses open up in Saratoga. I had a friend who was going to golf at a course in Clifton Park. So certainly now we're taking you know, we're turning our attention to spring activities, which is usually

the time of year. Now we're going to get a massive snowstorm. Right once we start letting our guard down, nature has a way of coming back at us. So but hopefully you're just nicer weather. We'll be continuing to come soon. So I always like to say Steve uses this radio show really to showcase the talent of our team. And you know, Steve really has assembled an amazing team at Bouchet Financial Group, and I'm proud to be part of that team. And so yesterday Marty Shields hosted the show. Today I'm

hosting the show. If you listen, you know, you've certainly had a chance to listen to Nicole Goebel, Ryan Bouchet, Steve's son, Paulo La Pietra, Harmony Wagner, Samantha Macy, Vinnie Testa, and our youngest member of our team at Wilhelm. It was a guest host last week with Vinnie. So, you know, as a firm, we all appreciate doing the show. I think it's a great way to kind of give back to the community. It's a great way to really, you know, share what we

do every day working with clients. So a lot of the topics we talk about our topics that have come up in client conversations. So with all that said, I appreciate you tuning in today. I hope you enjoy the next sixty minutes. I encourage any listeners to call in with questions. You can reach me at eight hundred talk wg Y. That's eight hundred eight two five five nine four nine. So this morning, you know, we can talk about the markets, talk about investing, some financial planning, uh, touch

on tax a little bit, you know, from a market perspective. You know, this week was a you know, fairly I'm gonna say quiet week. Now. You know, it's hard to call any any of the weeks in the market quiet. You know, even Friday we had massive run up in the morning with the release of the jobs report and then uh, you

know, sell off the in the afternoon. But from a closed perspective, you know, uh, all the major indexes were down slightly, uh for the week, but but still all you know, S and P up year to date almost seven and a half percent, NASDAC a little over seven percent. Uh, even the Dow up almost three percent year to date. So you know, certainly, you know, this week had jobs data report, which certainly you know, we'll talk a little bit about more in the show.

There were some initial reaction markets you know, reacted very positive, but then cooled off in the afternoon. But you know, so the week not a lot of movement, but year to date just just phenomenal, uh, you know, phenomenal progress in the markets. And you know, you know, we say year to day, you know that, but also if you look at just year, you know, just a year, right, you know, so I mean the S and P for a year, not year

to date, but for the year is up thirty three percent. So if you go back, you know, twelve months, which you know that that's phenomenal bull market we're in right now. And so you know, those of you're still sitting with cash on the sideline wondering, you know, when do we get in? When do we get in? You know, it's it's time, and you know, you certainly've got uh you know, you know, certainly got to participate in the markets right to get that return. But

we'll we'll talk a little bit more about that. Other treasuries. You know, the ten year treasury you know, ended a little bit lower on Friday, so closed out the week at a little yield of four point eight eight percent. So you know, certainly, you know, treasuries, uh, you know, certainly down from the high that we saw the ten year of

five percent, you know, back in twenty twenty three. And as you know, that's what we're gonna expect to see, as you know, the FED starts to look at interstates and starts to do you know, some cutting. We're gonna see some yields being given up there. So but you know, we've got you know, I think we've got some time before before we see some rate cuts, and we'll talk about that. You know, the FED meeting coming up at the end of March, so we'll we'll see.

But you know, in terms of markets still, you know, all the equity market's still very positive territory for the year, very very good signs, especially after the you know, the year we had in twenty twenty two, twenty twenty three, great recovery, and so far twenty twenty four is you know, off to a great start. You know, I will say, Steve internally shared a chart with our team, you know, really charting the returns of the S and P five hundred, you know, really over the

last two decades. And if you look at you know, the twenty ten decades, so basically twenty ten to twenty nineteen, you know, the average annualized return to the S and P five hundred was about thirteen point four percent. And as we now look at, you know, the twenty twenty decade, right, so twenty twenty to where we are today. So even with the huge you know, the massive decline in twenty twenty two, eighteen percent down, you know, so far, you know, and I know we've

got a lot left of the decade. I'm not wishing the decade past us, but still thirteen point six percent annualized, so uh, you know, the market has shown its resilience, and certainly, you know, the tech

sector has been leading the charge. But I will say, you know, we're seeing you know, a broadening of positive earnings and earnings growth, and we're starting to see mid caps small caps really start to you know, bolster the whole recovery, so which is nice to see because you know, you don't want to see a market that is driven too much by one segment.

So it's great to see that now, you know, spreading out to the small cap mid cap and and a lot of economists as we look at, you know, how the rest of twenty twenty four is going to play out. You know, I think that that's going to be very important to have a small cap in mid cap really participating in providing some of that that positive return. So again I iciate everybody tuning in this morning and encourage you to call in with questions. You can reach me at eight hundred talk w g

Y. That's eight hundred eight two five five nine four nine. You know, And you know I talked about you know, the markets and how they've how nicely they've increased, and you know, there we do get questions and a lot about Okay, you know, markets are so high right now, they've they've done so well. I'm now maybe I've had cash on the sideline and I now want to put it to work. And you know, should I be reconcerned, you know about you know, maybe a correction And I

will say, you know, listen, we we are. You know, almost all the indexes are almost at you know, at all time highs. You know, they give it up a little bit over the last week. But uh, you know, we do get corrections in the market, right and correction is you know, decline of roughly ten percent. And you know, so if you look historically the average in an average year, you know, we see a fourteen to fifteen percent sell off from the highs to the

low. So so if we get a market correction in the ten percent, you know, I don't think they'd be very surprising, and certainly that can happen. But if we look at the where we think at least for our thesis that at we say a financial group, is we look at the equity markets, not just tech, but really the broadening out to you know, small cap in mid cap. We're very bullish on the equity markets and believe you know, from a long term investor perspective, it makes a lot of

sense to be inequities now. In the short term. Sure, we could see over the next six months, we could see a correction, and I would say to anyone who has cash sitting in the side, if we do see any correction, I would certainly view that as a buying opportunity to go in and and you know, put that money to work. And again,

yeah, we'll say. You know, one thing that that Steve says to almost every new client that we meet with is you know, guarantee that you know some years you're gonna lose money and in some days you're gonna lose money, and that's not a bad thing over the long haul, right, And again we are very much long term investor philosophy at our firm is you're gonna have ups and you're gonna have downs, but over the long haul, you know that market's gonna go up. And I talked about you know, the

the returns of the S and P five hundred over the last two decades certainly can go much farther back, but equity markets have shown that, you know, delivering close to almost ten percent over a long historical period but on any given time you can have some market corrections. You can have you know, sometimes where you look at that statement, you've lost little money. So I certainly wouldn't be fearful of that. That that that is natural in the stock

markets. And I mentioned, you know, average year, we are seeing, you know, difference of almost fourteen to fifteen between highs and low so that that's natural, that's a natural market movements. So in terms of where we're looking at the markets going twenty twenty four, you know, again, certainly it's been a hot market so far this year. And is there the risk of a potential correction. Sure, But I say, you know, I think what we're seeing is the growth in the markets is really right now

being driven by earnings, which is really nice to see. I mean, the earnings have been very positive and again we're seeing that broadening to the small mid cap and that's what's you know, driving valuations. It's and it's good that, you know, although the FED is still very much in our site in you know, looking at when they're going to cut rates, that's not what really is driving valuations right now. It's not the expectation of rate cuts.

It's really earnings. So again that is great to see in the markets. You want to see a market driven by really by solid fundamentals and not by hype. And so uh, certainly earnings have been leading the way. And again if if if we do see a market correction, uh, again, it doesn't you know, there's always analogies to tech. Are we looking at a tech bubble? You know, again, everything I'm reading the economists, I'm following very different situation in that we're seeing a real emerging technology.

This this artificial intelligence, which is really you know, leading a lot of the the earnings growth that we're seeing with the top tech companies. This is real, I mean, you know, so it's not about hype. It's it's real earnings that are backing up those valuations, which which again is from an investor's point of view, is what we want to see earnings driving uh

valuations. And so you know, and again I get this question personally from friends and also clients, is you know, sometimes maybe they've got money that they've maybe they had a treasury that they were investing in come do and they've or maybe they've got cash they've had on the sideline and they want to put it to work. Certainly as we look at where the markets are going from

today. Again, short term, there could be a market correction. Again I'm not calling that, I'm just saying, but what we know, you shouldn't be surprised or fearful of that if we do see any kind of correction. Again we're seeing. Long term, we think the equity markets are a great place to be, and that's where you know, from a financial planning point of view, it's really important to know you know when you need that money. It's a really important part of the process we go through with clients

that if you have a short term need for money. For example, let's say you had some cash you were putting to work in the market, and you didn't need that money for five six years, well certainly I would put

that into He's put it to work right away. Now. If you have that money and you know you're going to be let's say, buying a vacation home or doing a major renovation, and that money might be needed in the next three to nine months, well then you know, from a risk perspective, you know, I probably wouldn't put that in the equities in market, and I might look and say, okay, are there some fixed income products that I could put in, lock in some yield, and generate some good

return on that money without having to worry about the short term market fluctuations. And so I think from an investing point of view, it's really that's really important to know here that money, whether it's money you're putting into IRA or four oh one K and you know you're not going to touch it for many years, or other money that you may be investing in taxable accounts, you're gonna want a strategy, right, that's gonna yeah, you can afford to

take some risk, right, and especially over the long haul. Clearly it is shown that equity markets are going to provide, you know, more than you're going to get in the fixed income and so it's good to allocate put a higher allocation towards equity. Now, again from a from a planning perspective, this is where it's important, and planning is not fun. You know, some people enjoy it. I personally enjoy it, but not everybody enjoys

it. But I will say it's important because that really should you know, come into play with what your investment philosophy is, because if you have short term needs for that cash, then you should invest it appropriately. The last thing you want to do is decide you're now a Navidia fan, go all in on that cash with Navidia, and you know you need that money in three months for that renovation, and then you go to pull that money out three months and the video is down fifteen percent. Now that is not,

you know, good planning perspective, and that's a way over simplification. But the concept is there is that you know you should invest with an asset allocation that that really is consistent with what your cash flow needs are. And that's important to do. And it's it's it doesn't mean you have to track every penny you spend. I mean, it's it's interesting. I've met people who you know, use a product like maybe Quicken or something where they're really they're

tracking everything they spend, every every penny. But then yeah, well, okay, you know how you're spending it. But are you enforcing any budgeting rules? I mean, are you are you doing anything different because of that? Or do you just know where you spend your money? And and so you really don't. You know, it's good if hey, if you can go to that level and you can use it from a budgeting, not just

a tracking. I mean, yes, it's good to know where you're spending your money, but really, budgeting is about enforcing rules, right, It's about saying, I'm setting this money aside and I'm I'm gonna spend it in this area. Uh. It's funny. I often go back to I think, you know, lessons I learned from from my mother, who was interesting. My mother was a nurse and then a school teacher. My dad was

a banker. But I learned some very valuable budgeting lessons. I remember, you know, I'm one of five children, and you know, my mother would cash her paycheck and and put money into envelopes, and the different envelopes were labeled, you know, here's groceries, here's orthodonics. She had five kids, all of us needed bracest, so that was a big bill bill, medical, whatever, it was, vacation. Uh. And when she went to go spend money, if it wasn't in that envelope, well then

that money didn't get spent. And I still recall that to this day, and that is, you know, such a great lesson that really, you know, it's hard. Budgeting is very hard, but it really is the foundation of solid financial planning that you can then really couple with your sound investment strategy. So I get I'm getting a little preachy and I and I understand that, but again, as a CPA, I do think budgeting is really

important. I'm not suggesting everybody go to an envelope system, but I'm saying come up with a system that works, and it can be very high level just knowing where you're spending, setting some spending goals, and and kind of

holding yourself accountable. But also by doing that, it's kind of projecting what your what what your cash needs are, what do you need money for in the short term, and just make sure whatever you're doing on the investing side really is consistent with that right because again, what we all want to avoid is being in a case where we need to sell or liquidate an investment at a time where we couldn't plan for it, so we were forced to liquidate

versus being able to do it when we wanted to write so which sometimes happened if we don't project out our cash and I understand, surprises happen. We you know, surprise medical bill or there's a major renovation that needs to happen because of tree fell on the house and insurance only covered whatever. So life is gonna deliver those kind of surprises. But I will say that that's where you know, you know, doing some good planning, understanding what your upcoming

cash needs are. And we you know, from a financial planning purpose, we really look at cash needs over the next you know, twenty four months. Uh, and then we typically set that money aside, you know, in a vehicle that's still going to provide yield, but it's not going to

be subject to market fluctuations. And so certainly employing some of those practices in your own life can be helpful because again, you don't want to be in a position where you've put some money and you really want to be investing in stocks, but then you're forced to liquidate at a time where it's inopportunity and it could be you know, maybe the stocks down or maybe the stock doing great, and your you're forced exited a time too early because you had,

uh, you know, a cash need come up that that you should have known about through some planning. So uh, certainly uh, And I will say I do think is in part is probably biased because of what are that's what we do, right as wealth managers, we not only manage our client's wealth and try to maximize their returns based on their risk knowledge, but we also from a financial planning point of view, try to help them with the financial plan so they they know how they stand long term financially, that they

have kind of that that playbook that they can go back to. So certainly a big part of what we do. So again, you have John Malay hosting the show this morning. I appreciate you listening, and uh, certainly if you have any questions, don't hesitate to reach out at eight hundred talk w g Y. That's eight hundred eight two five nine four nine. We're gonna take a quick commercial break, so please stay tuned and we'll be right back with Let's Talk Money on eight ten WGY. All right, we're back

after a short break. I appreciate that. I will say I am suffering. I'm getting over a little bit of a cold, so I had to take a quick break to get a drink of water. Zach just let me know that we're coming up against the break, so that was probably not the most well time break there, but I apologize for that. I didn't need a little little drink so you know, we're wrapping up some financial planning topics. Certainly it's a big part of what we do and it should be a

big part of your life. We are going to be you know, we're halfway through today's show and we're going to be taking a commercial break. I want to thank you for tuning in with us today. We hope you're enjoying the show so far and hope you'll rejoin us after the break. We encourage any 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. You are listening to Let's Talk Money, brought to you by Bouchet Financial Group, where we help our clients prioritize their health well we manage their wealth for life. Well, good morning, and thank you for staying with us through the break. I'm John Malay. I am a certified public accountant, the chief financial Officer, chief operating officer, and a wealth advisor at Bouchet Financial Group.

I appreciate you tuning in with us this morning. I was just listening to the same news you are, and hopefully everybody remembers to change their clocks ahead it's that time of year, and to be honest, I'm looking forward to leaving work this week and next week. It's it's always nice when you walk out at the end of the day and there's still plenty of sunlight. It does feel like, you know, you got extra time, bonus time. So I'm certainly looking forward to that and some nice warm spring weather to

boot would be nice. And looking ahead at the at the weather, I think today's going to be a little bit of a weather day, but I think as we get later in the week it's supposed to get nice and warm, so that'll be very nice looking forward to that. So we're talking about some investment news, some financial planning topics, and you know, one of these I just want to you know, wrap up on the financial planning,

but also just you know, encourage any listeners. Just a reminder you can reach me at eight hundred talk w g Y. That's eight hundred eight two

five five nine four nine. You know, So from an investing and financial planning perspective, you know, risk allocation, you know, is really important and it really you can think of it just in terms of from a portfolio as you put your portfolio together, you know, how you what's the appropriate risk for where you're at with your life, and how much of your portfolio

do you devote to equity versus fixed income? And certainly, you know, you may have heard of like the sixty forty the balance portfolio of sixty forty sets sixty percent of your portfolio invested in equity and forty percent into fixed income, which could be bonds, treasuries, some alternatives, and we've i know, we've talked a lot about you know, in twenty twenty two, we really exited bonds and went more towards alternatives. It was a great move.

Our clients did really well with that. We certainly have been back into bonds as bonds have performed well and have provided some good yield. But as you know, many of you, you know, many people you know, stayed with their fixed income and maybe kept it in cash and you know, maybe some savings accounts where they're able to get the bank to give a decent yield. You know, as rates have been high, you know you could do

that. You could have a bank account or a money market fund you know yielding you know, close to five percent, and you know the and that that's been a great strategy and and you know, provides the liquidity that people need. So if they need that money, they know it's rate there. But certainly, as you know, as we progress farther into twenty twenty four and into twenty twenty five, you know, the Fed will be cutting rates. It is a matter of when, but they will be cutting rates.

And so what will happen is those those short term rates will will go down as rates go down, and so you know, this may be a good opportunity, you know, to really make sure you're looking at that fixed income side. And maybe you've had money where again where you've had it in you know, maybe a savings account that if the rates do go down, your yield will go down, and maybe a good opportunity to really lock in some

if you haven't done so far. I mean it's been a you know, great opportunity for the last you know, nine months, I'll say, But certainly, if if you haven't and you still have money sitting there, that's

really you know, you haven't really locked in the yield. You know, I would recommend really looking at that and that and that could be you know, buying a treasury you know, so I think you know, just looking at current treasury yields, you know, twelve month is still yielding you know, four point ninety two, the two year almost four and a half.

And again, you know, I'm not saying that they're the that they're not couldn't go up from here where we certainly saw yields go down a little bit last week, you know, depending on what happens with the inflation news coming out next week, you know, we certainly can see rates fluctuate a bit.

So, but I would say, you know, the the downside of of just leaving it in an account like a savings account where the rate can go down, right, You're just you get your you have that rate now, but you're not guaranteed that rate six months from now, right, so you know that's going to go down, just as like in you know, twenty twenty one, twenty you know, those those savings accounts were yielding zero point three nine percent, right, you know, nothing, and they will

go down as rates go down. So certainly it may be a time for

you to look at if you've got money in those accounts. It's not too late to lock in you know, a DC yield, and so if you can lock in, you know, even a ten year you know, a little over four percent, you know, four and a half on a two year you know, you think about from a fixed ink, you know, from your from an asset allocation, you know, if you've got the fixed income part of your portfolio, really what you're looking for is stability and income

and if you can lock in a yield where that's generating you know, four and a half percent over the next five years, although the five years at four percent, so you know, delivering a four percent. But but if you can lock in a rate, you know, that's a good move, right because what happens is as rates go down, if it's all short term money, as rates go down, your yield on that will go down.

So if you can out of that part of your portfolio lock in yield it and some of you may have already done it, and that's because you know, we did see you know, the ten year you know again over five at one point. Certainly those are great times to lock in rates for a long time. But if you haven't, you know, it's not something where okay, you missed that opportunity, but still there's an opportunity to lock in a good yield and make sure that that part of your portfolio is delivering.

So just a little bit of a thought there as you know, you think about asset allocation and how to make sure you're getting the most out of each part of your your portfolio. There. So I encourage any 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. So, you know, on Friday, we had the jobs report come out and uh, you know, it was interesting morning. The markets you know, reacted very positively.

I mean all the indexes went up significantly, and then it kind of cooled off and ended the day lower across the board. And you know, the jobs reports showing if we still have a very very strong, healthy economy. So it's it definitely was a mixed news kind of bag, you know, where you know, the US economy added two hundred and seventy five thousand jobs

in February, which exceeded expectations for a little hundred two hundred. Unemployment starting to tick up, right, so unemployment came in at three point nine percent, so it is showing an uptick but still very very good unemployment. And so and also seeing wage growth, you know, come down. Uh. So it's it's really you know, starting to look like and you know, almost like the Feed is threading their needle on their on their door dual mandate,

right, which is UH inflation and jobs. So it certainly seems like, you know, things are you know, you know, we talk about this goldilocks landing and you know, this soft landing, and it seems like the Fed is doing a great job of managing towards that. So, you know, jobs report came out and again very positive news on uh, the economy is you know, the job market is strong, and you think about this job market strong and wage growth right, which is going to impact expenses

for companies is coming down. So still a very healthy, healthy market, uh, and one where you know, as we talk about consumers, you know, consumer spending makes up such a large part of our economy that a consumer who is employed, uh is spending and that's just reality. So certainly we're seeing, uh, the economy continue to move forward in a positive way. And you know, as we the CPI will come out this week,

so on Tuesday, the inflation reading for February will come out. Certainly all eyes will be on that and you know, it's interesting, you know, Chairman Powell has come out in some press releases and other documents, you know, stating, uh, you know really that they're not they don't need to see a huge change in the numbers. They just want to see more information, right, They're just looking for more data showing that to become confident that

inflation really is under control. And so this is you know, jobs report, I think is that came out Friday is one of those positive signs. Right. We saw you know, strength in the jobs, but also declining, declining wage costs and a slight uptick in unemployment and those are you know, things that the FED wants to see. So the CPI you know,

reading on on Tuesday will be an important one. This will be another important uh you know, and you got the FED meeting later on in March the nineteenth and twentieth, so this will be some recent, very recent data and so uh, certainly this will be something they'll be looking at. And you know, I think generally the feeling is we're not going to be seeing a rate decline uh in March, in the March meeting, but certainly it is not off the table. So we have a caller on the phone line,

Maria from all but Ny, Maria, appreciate you listening. And what question do you have this morning just regarding CDs versus treasuries. So CDs do get the ten ninety nine interest form when it matures, but it's still accumulating every year. You don't get the tenant interest form until the end. And then I was wondering the party that question. It would be for treasuries. If you have a ten year treasure, like you were just talking about, would you get the ten A nine I T form at the end of the ten

years or are you paying on your taxes every year? Great? Great question, So you know with that treasury, and so this is kind of the benefit of you know, what we want out of the fixed income part of our portfolio, right is you want income and you want you know, stability, and so you would be receiving interest, you know, throughout the throughout the year, right twice a year, and so you you would be taxed

on that interest. So yes, and so you'd be and then at the end of the bond you'd be getting back the full full face of that that bond. But you would would you would be receiving interest twice a year and being taxed on that interest. Uh that you received? Is that for the Treasury bonds as well as Treasury bills? Yes, the structure, yes, yep, okay, And do you know I just started with Treasury Direct. Would that is that something that they mail to you or are you responsible to

go online your own account? Do you know that? I'm not that, I'm not exactly sure, but I think through the Treasury Direct you would be able to see that. Okay, I'm sure for your clients you buy through your Yeah, so we exactly. So we used ches, We used Charles Schwab as a custodian, so all that information would be delivered through there. Yes, I did notice like Bedelia and Van Guard dated is same things, to buy treasuries through them. But I was I was. Someone convinced me

to go through Treasury Trucks, you know, directly? Yea. And the nice thing about that is they they like they set the account, they like pulled out of your savings account. You see that money grow and they put it back in your savings one at one of the bottom of chures or the security that so it is very convenient. I got to be very humbersome to use that website good government related we have we have to give them credit. We have to give right, we have to give them credit for something that

they do some things right that No, it is. It is a great site. And uh again just for ease of our clients, you know, we use it. We go right through our custodian and uh just easier for us, uh in our capacity to work through our custodic Ye. Yes,

I actually did buy one through a custodian myself. And it's like you're not like guaranteed the rate necessarily with the government, but you are actually guaranteed the rate with with with another financial organization because it's like the I don't quote me in this, you know better than me, like the aftermarket rate or the what you called again the post traded rate or something like that. Yeah, yeah, yeah, and one right and one in one thing that you know

with treasuries, you know they're there. The price you pay for a treasury can depend on what's going on with interest rates, right, So you you may buy treasury at a premium a discount, right, and that's going to be part of what you earn on that. And so uh certainly again with treasuries, again, there's there's no risk if if you hold them to maturity, right, But if you sell them early, right, you you're either what you could give for what could depend on what's going on with interest rates

at that times. Remember, you know, bond prices are inversely related to interest rates. So you know, you think about bonds that might have been issued in twenty twenty. You know, may be the bond was issued paying you know, one and a quarter percent. You know, you wouldn't buy that bond now at face value, right, So let's say it was one

hundred ten thousand dollars bond. You wouldn't pay ten thousand because you're like, I could invest in a bond right now, you know, for for a two year bond and get four in almost four and a half percent, So why would I buy this bond that has two years left that was issued at one and a quarter percent, But you might pay eight thousand for it or

whatever. However the math works, so when you get at the if you hold it to maturity, when you get that ten thousand, add that to the interest that becomes you know, the yield you're going to get, which is gonna be uh, you know, equivalent to what the current current issue bonds would be. So certainly bonds, you know, and again individual treasuries you know, backed by the US government really no credit risk. And but but you've you've got to be committed to really hold hold them to maturity.

So I appreciate the question there, and we're gonna go to another caller. I've got Bill and Greenwich. Bill, thank you for listening, and what can I help you with this morning? Yeah, good morning. I have a question on an individual stock that hept for quite a while. It's taking a just one of the main seven, Tesla. Where do you see Tesla going from this point on? Uh, that is a great question. You know, Tesla is actually a stock I hold individually, and I I'm holding

on to them. You know. It's it's you know, it's hard to bet against Elon, to be honest, and uh, you know, they I will say, they're they're a hard company to put them in a box, right, because they're you know, you can say they're auto maker, right, but but really they're technology company, right. And so this is

where this is where it becomes difficult. They they're they're doing so much innovation, you know, I view them, you know, really more is a technology company, and so you know, I'm I've not given up on them. I mean, it's it's not performed great for me, but you know, as you know from from holding them, you know, it has not been you know, the smoothest ride lately, and certainly you know for the

last uh, you know, last year. Let's say, if I look at them over you know, year to date, what down almost thirty percent, you know, But I will say they're a company I'm still holding only because I I do think that the technology side of what they're doing they're going to capitalize on. Certainly, if you look at them and value them as an auto company, you know, there's some question there. But but certainly, you know, I view them just because of the innovation of what they're

doing, and it's a long time, you know, long term. I think they'll they'll be a good play. Yeah. I see summer projections on the stock like in the twenty twenty five at five dollars a share. I think that's a little unreal, but you'll never know, that's right, That's right, I mean, you know they I mean that's why you know they certainly when you see things like that, they're certainly being viewed as a technology

company, right, you know, not as just an auto company. So I will say, you know they're there, they are then and if you you know, dig into their filings, I mean they they are working on very interesting things, you know, in the battery technology side. And so I'm not sure, I I I mean, I would love that valuation, but I'm I'm certainly you know, staying with them because I think they're a company, that they're an innovator and uh, you know, I I am

betting on the upset. But you're right, they they have they have been an underperformer, right you know when when you look at the Magnificent seven and you know it is interesting too when when you look at you know, companies like Navidia, who certainly you know, uh has delivered great results and and

certainly on the leading charge of what's happening with AI. But you know, you know, when whenever we hear about chips shortages, right that that sometimes can accelerate orders and buying and as things, you know, from what I'm

seeing, lead times of chips are coming down. And as we see that, and I'm not saying Navidia still isn't going to be great grower, but I I wouldn't be surprised if we see some slow down and growth there, just because you know, there was such a uptick of chip buying as there

was concern for shortage. As things are now normalizing, you know, we say we may see their growth normalized, which you know, we we could see some uh you know retreat of their their value, their price, you know, but I still think, you know, that would be a short term correction and then long term there's still poised to really capitalize well on on you know, the AI uh front. I appreciate, yeah, appreciate your

calling in. And again I would say, if you're you know, long term investor, you know Tesla as a company, I'd be comfortable holding long term. So Bill, appreciate the call and uh you appreciate you tuning in with us this morning. And uh again, I encourage any other listeners to call in with questions. You can reach me at eight hundred talk WG. That's eight hundred eight two five five nine four nine some great questions there. Appreciate the call in and so you know we were just uh uh you know,

really talking. You know, FED will be meeting later on in March again big, big data coming out this Tuesday with the CPI, and uh, you know, I think generally, you know, January was a little bit hotter month than expected. You know, from the expectations, I'm seeing people expect February to be a little hotter, but still you know, within the Fed's range, not down to the two percent, but I think more

closer to annualize you know, three percent in terms of annual inflation. So uh, you know, I think barring any big surprise, uh, you know, I think the Fed will you know, generally, I think folks are thinking the Fed March are not going to touch into traits that's really it's going to be. June will be the first time that we may see a

quarter twenty five bass point reduction. But I think we'll hear more rhetoric about you know, they've made it clear they want to see more data and they want to see They're not saying that they want to see major movements in the data. And I think that's an important note that came out of Powell in one of the press conferences last week, is he's not saying that he needs

better data. He just wants more data, more data, showing that this is sustained that this is not just you know, a reduction that in inflation that possibly could creep its head back up. So but so definitely this this Tuesday's reading on CPI, you know, will be will be you know, important uh set of data for the Fed to talk about and consider as they meet later on in the month. So again, appreciate you tuning in with

me this morning. And you know, here we are, we're very close to tax time and uh you know, March tenth, so April fifteenth, tax time. You got a little bit of time left. Hopefully everybody is working towards getting their taxes filed, and you know a little bit of time left if you're doing IRA contributions, and certainly uh you know, uh yeah, at this point it's a good time as you're you're into your taxes and thinking about it is certainly looking at some tax planning for next year as well.

So not too again, if you do have HSA's or IRA's, it's not too late to make a contribution. So I certainly I can look at some things there I have, you know, Zach, just let me know we're we're approaching the end of the show. I really want to thank you for tuning in with us this morning. I want to hope you enjoyed the show. I certainly did. I hope you enjoy the rest of your weekend as we head into Sunday, and check out our website www. Dot BChE

dot com for great content and information. Also tune in next week Saturday at ten am. I want to thank you for 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.