Money News You’ll Really Use: June 30, 2021

This article was originally published on this site

Nearly every day there’s news that affects you and your money. From politics and taxes to markets and interest rates, things are happening that affect your savings and your future — so many things, in fact, it’s hard to keep up with them all.

© Stacy Johnson / Money Talks News

Problem solved. We track everything that’s happening every day. And every couple of weeks, we condense it all and report everything you need to know in a special edition of the “Money!” podcast.

In addition to recapping the news, we check in on our personal investments, and discuss ideas and suggestions to make you smarter and richer, all without boring you to death in the process.

As usual, my co-host is financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Sit back, relax and listen to this special edition of the “Money!” podcast:

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About me

I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

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Computer-generated show transcript

Market Update: Money News You can Use June 29th, 2021

Stacy Johnson:

[00:00:00] Hi guys, and welcome to a special edition of the money podcast called money news. You’ll really use the concept is simple. I subscribed to tons of financial publications and every month I read hundreds of articles. Then once every couple of weeks, I give you the highlights to bring you up to speed on the important news that affects your money.

Think of it as an investor’s Almanac and part, one of today’s show, we’re going to discuss where we are now and what’s happening in the markets this month. The part two, we’ll go over important news stories and part three, we’ll go over recent investments. The three of us have made. And then if time allows, we’ll go over some listener questions.

I’m your host, Stacy Johnson. Mike co-host as usual as Miranda. Margaret. Hello, Miranda. 

Miranda Marquit: [00:00:40] Hello, Stacy 

Stacy Johnson: [00:00:41] and Aaron. Yes, listening into sometimes contributing is producer novice investor. Eric Freeman say hi, Aaron. Hello. How you guys doing today? Huh? All right, then let’s get this ball rolling. But first, a quick disclaimer, we’re going to discuss specific investments in this show, including things we’ve personally invested in, but these aren’t recommendations.

Why? Because what’s right for us may not be right for you. So before you invest in anything, you need to do your own research. You need to make your own. Decisions. Okay. Let’s get back to the news. We’re going to start with where we are now and where we’ve been this month. Okay. Now, since mid June. Now, the last time we did this was two weeks ago, mid June.

So since that time, the Dow Jones industrial average is up about three tenths of 1%. So not very much skyrocketing. Yeah, not much happening there, but since the beginning of the year, The Dow was up about 14%. Cause this is mid year. So we should be looking at how we’ve done so far this year. So we’re about 14% so far this year.

Next, the tech heavy NASDAQ up about 3% over the last two weeks. Up about 10% so far this year. Now the Russell 2000 is the index for smaller companies. Also known as small caps. That index is up two tenths of 1% of our last two weeks. So basically unchanged, but since the beginning of the year, that’s about 18%.

Little stocks up 18% big stocks, the Dow Jones, industrial average of about 14 and tech heavy stocks NASDAQ up about 10% so far this year. So you can see the difference between these different types of stocks. Okay. And finally, the 10 year treasury bond, that’s how we keep an eye on interest rates. Today.

It is paying just under 1.5% virtually identical to where it was a couple of weeks ago, but about 50% higher than it was at the beginning of the year. So that’s where we are is, is, it is interesting to see in perspective when you stare at this stuff every day, it’s interesting to go back and see what’s actually happened.

Like, you know, like somethings are just really unchanged in the last two weeks, but it feels like lots of stuff is happening. Things are going up and down, but they’re ending up pretty much in the same place over two week period, at least. 

Miranda Marquit: [00:02:48] I don’t know. It’s really sad. I’m still just kind of seeing, I’m just still kind of waiting, right?

I dunno. Just waiting for, just waiting for the other shoe to drop, I guess. So 

Aaron Freeman: [00:02:58] there are a lot of articles out 

Stacy Johnson: [00:02:59] there you’ve been doing a lot of research on Aaron. Aaron’s becoming quite, he was, he was barely investing at all. Why shouldn’t say it that way, but you’ve come a long way. Uh, intense investor since we’ve started doing this podcast.

It’s just interesting 

Aaron Freeman: [00:03:11] because so many articles, there’s so many, uh, institutional guys out there going, oh, it’s going to end it’s market’s going to go up 30, 40% of the end of the year. And then it’s going to crash 20% in goals. And then there’s tons of articles about, you know, Powell is going to have to increase the, the, uh, interest rates and that’s, what’s going to cause it all.

So I’m almost wondering is that what’s keeping everybody in this holding pattern. 

Stacy Johnson: [00:03:36] It’s interesting because here’s the way I’m looking at it. You know, the market is a discounting mechanism. So in other words, the stock market is going to try to tell you where the market, where the economy is going to be six months from now, six months to a year.

So it’s looking at the future. So remember that we, when we first started doing this podcast, when we talk about the stock market, uh, maybe a year ago, I don’t know how long ago it’s been, but. We would say the market is poised to come out of this pandemic and everyone’s going to spend a bunch of money and things are going to go up.

Well, the market started acting that way almost immediately. You know, the market hit a low when the pandemic hit a high, basically, uh, and ever since then it’s remained high, but the market’s now looking out and it’s going, Hmm. If everybody’s bought all their boats, cars, vacations, et cetera, a year from now, Then the comparisons to this time period are not going to be good.

You know, people are going to be selling fewer cars, boats, vacations, and so that’s going to make the market compress. So, so the market, the top of the market is going to come before the top of the economy. And, and I’m trying to figure out where that’s going to be so I can bail out, not out of everything.

We never build out of everything, but I’ve been waiting to get out of oil stocks, for example, and oil was horrible. It’s one of the best performing sectors. This, this year up 40%. But, uh, and so, and I’ve owned oil stocks for 10 years and I’m, I’m ready to go to alternate, alternate energy investment. So I want to get out of oil.

I want to get out of my banks, but I’m not sure exactly where the top of the market is going to be for these things. So that’s what I’m waiting to find out now. I’m not sure where that’s going to be, and I sure don’t want to get caught. Uh, yeah, I was gonna say like, 

Aaron Freeman: [00:05:15] how, how would you know?

Stacy Johnson: [00:05:17] Well, you really 

Aaron Freeman: [00:05:17] don’t.

I just, you kinda gotta make that decision yourself, 

Stacy Johnson: [00:05:20] right? Yeah. And, and you know, I’m not going to try to pick up every last nickel, uh, profit, you know what I mean? I’ve made a lot of money on these socks because I’m on them for a really long time. 

Aaron Freeman: [00:05:29] Are you waiting to see how ma how the big institutional guys move their money?

Is that what you’re waiting for? 

Stacy Johnson: [00:05:33] Well, yeah, but there’s no way to know that because they don’t all move in concert, you know? I mean, you could look at, look at the wall street journal, look at any financial periodical any day, and you’ll see one money manager who’s famous and rich saying the market’s just about to crash.

Well, another one’s saying like, you got to go. Baby it’s things not just starting to take off. I mean, you know, you can’t get really straight answers by just looking at what 

Aaron Freeman: [00:05:52] you’re saying about getting out of banks and stuff like that. This, I picked up this little weird tiny company called sofi, which is a, an online or whatever.

It’s an app based banking system. You look at acorns, they felt like 9 million users. I mean, at what, how many users does it take before you say, you know, this 

Stacy Johnson: [00:06:08] is the thing. No, I mean, no question. Th th you know, that’s great and that’s, that’s, by the way, Erin is exactly why I want to get out of bank stocks.

I’ve got traditional bank stocks that I bought in 2009. I’ve I’ve got JP Morgan, I’ve got Citibank, I’ve got Wells Fargo. And so what I want to do is I want to get out of those and I want to get in to stocks like sofa. And what are you going to the new financial stock? Uh, in order to invest for the future, which we talked about before, I’m just not sure where, where my maximum profits going to be on my bank, socks that I have now by traditional.

Yeah, as we, this is why we’re having this podcast as we go along, then I’ll just tell you when I’m going to, 

Aaron Freeman: [00:06:48] you just mentioned, uh, uh, maybe there’s a pullback on consumer spending. Like maybe they already have other cars. Maybe they already have all their RVs and maybe they now have their houses. And they’re all happy to counter that.

There’s a stat out there that said there is about $2.4 trillion. Saved during the pandemic, but just regular accounts, everyday people. And that’s a lot of spending power. Yes. It gets, you have to come out of there. You know, we don’t know how they’re going 

Stacy Johnson: [00:07:14] to spend it yet. I mean, this could go on for a very long time.

That’s why I don’t want to get out too early. You know, the, of these sorts of stocks, the oil stocks, or it could go to a hundred bucks as a matter of fact, I think that’s one of the, it is. It’s one of the stories I’m going to tell you about a little while. Um, so I don’t want to get out too early and also if the pandemic starts rearing its ugly head again.

Then that could slow things down. And so then, then the recovery would take longer, you know? Cause, and that’s another story I’m going to cover. I think today, uh, you know, not so much here, but there, there are pockets in the United States where the pandemic, because starting to research, uh, but it’s also happening internationally.

So anyway, as a matter of fact, if, if you have no more general comments on the market, I’ll go right to the news, go for it. Okay. Now I’m going to give you guys five news story. And for those of you listening, if you go to our show notes, you’re going to find probably 15 or 20. So I just pick five that I think are important.

I’m going to read them out to Miranda and Aaron, and they’re going to tell me which one they think is the single most important one. Okay. June 15th, uh, here, this came from CNBC. Here’s your headline rents for single family homes just saw the largest gains in nearly 15 years. Text, even as the pandemic abs and the Americans get back to work and play, they still want more space at home.

But with home prices hitting record highs, demand for single family, rental homes are soaring. And so our rents, single family rents are up 5.3% year over year in April up from a 2.4% increase in April from April, 2020. According to core logic, that’s the largest gain. Nearly 15 years reds for single family, detached homes were up and even strong.

7.9% compared with a year ago. So rents are going up. Here’s my next story. This is her June 16th, uh, associated press world banks. He’s 5.6% global growth in 2021. The best since 1973. Um, that’s your headline. Here’s some texts, but the 20, but the 2021 rebound will be uneven. The bank predicts led by rich countries, such as the United States that could afford to spend vast amounts of taxpayer money to support their economies.

90% of advanced economies are expected to return to predict pre pandemic levels. Next year, measured by income per person versus just a third. Of developing countries, 90% of developed countries back to pre pandemic normal versus just a third of developing countries. It’s kind of sad. Wow. Yeah. Now we’re going to skip ahead to June 21st headline.

This game from this comes from Barron’s headline oil could get to a hundred bucks a barrel. Here are the stocks to play it. Here’s some quotes oil prices could spike above a hundred dollars a barrel next year. If demand keeps improving bank of America analysts, Cisco blunt, blonch wrote in a report on Monday  18 costs, fuel prices to plunge and force producers to slow drilling.

What happened next has been surprising though, instead of resuming their old ways and fuel demand picked up again, most producers held back back to conserve cash, hit their balance sheets. Yeah. So that means fuel supplies or fuel demand is jumping, but supply still hasn’t caught up and just, you know what?

They are, the stocks that he recommended were ExxonMobil. Occidental petroleum has Diamondback energy and Devin energy. Okay. Here’s your next story? June 24th. This comes from CNBC. We have a deal Biden says after meeting with Senator infrastru. Group rather infrastructure group. That’s your headline. And here’s a quick quote, president Joe Biden on Thursday declared that the white house had struck an infrastructure deal with a bipartisan group of senators after discussing the massive plan to improve the nation’s roads, bridges and broadband.

Earlier in the day, the law makers worked for weeks to craft a, of roughly $1 trillion infrastructure package that could get to Congress with support from both parties, deciding how to pay for the plan has posed the biggest challenge. And the senators have not finalized how that the proposal would raise revenue.

And we’ve got one more headline for you. This, this is from June 28th, which is yesterday from the New York times. This is my favorite. I’ll tell you that. Um, here’s your headline? M RNA vaccines may offer lasting protection study finds the vaccine. The here’s your here’s a quote, the vaccines made by Pfizer BioNTech uh, and  set off a persistent immune reaction in the body that may protect against a coronavirus for years.

Scientists reported on Monday. The final is that cool. Defining said to growing evidence that most people immunized with M RNA vaccines may not need boosters so long as the virus in its various do not evolve much beyond their current. 

Aaron Freeman: [00:11:54] There’s also an article out there that says, if you have at least one shot of each, it’s good to protect 

Stacy Johnson: [00:11:59] you too.

Oh, listen to the last sentence in this article to release. Cut and paste it. People who recovered from COVID-19 before being vaccinated may not need boosters. Even if the virus does make a significant transformation. So I had COVID and I’ve had the, uh, Pfizer vector vaccine. So I may never have to get another shot.

Same here. Nice. You didn’t get, you didn’t get COVID right, 

Miranda Marquit: [00:12:24] right. I did not have the COVID. I did not have the COVID, but I did get the vaccines. 

Aaron Freeman: [00:12:29] So I will say this though. There were reports of hair loss after having COVID and I had a lot of hair loss. 

Stacy Johnson: [00:12:36] You had a lot of hair loss. Yeah. And it start to grow back.

If you guys could see Erin, you would be laughing right now, real listeners, because Aaron has his, he has hippie here. He’s got here. 

Aaron Freeman: [00:12:47] But it was, it was, as I was shampooing, it would just come up and in my hands, it was 

Stacy Johnson: [00:12:51] crazy. You realize who you’re talking to though? You’re talking to sitting hair. Stacey, you can see my scalp.

I want your hair to fall out. I’m jealous of your hair. I don’t like her hair. 

Aaron Freeman: [00:13:02] Luckily, everything 

Stacy Johnson: [00:13:03] is okay. Thank God, please keep me informed. Okay. So I’m going to recap your headlines real quick, guys. If you can give me your pick. Okay. We had rents going up. We had world banks he’s 5.6% growth best since 1973, we had oil could get to a hundred bucks a barrel.

Here are five ways to play it. And we had Biden approves, a centered infrastructure plan, and finally vaccines offer lasting protection. What do you guys think is the most important one? 

Miranda Marquit: [00:13:34] Ooh, well, um, uh, I think the single family rent thing is really interesting from the standpoint of how difficult a lot of things are like right now in the various housing markets.

I mean, you know, now, now single family home rents are starting to catch up because people can’t afford houses, so they’re staying renting. And so now. The rents are starting to catch up. And in fact, I’m in the middle of waiting for my landlord. So like he says, I’ll renew the lease for another year, which I’m like, yay.

Her not selling. Thank goodness because I live in one of the hottest real estate markets in the country right now. Uh, but at the same time, he’s also researching to see if he’s going to like up my rent. So it’s, uh, it’s exciting. It’s exciting. We’re going to see what happens, uh, should let me know in the next couple of weeks.

So it’s going to be fun. 

Stacy Johnson: [00:14:27] Well, you should tell people where you live. Uh, just so they know what you mean. When you say, what are the hottest real estate markets. And it’s definitely true. Cause I’ve read it. 

Miranda Marquit: [00:14:33] Yeah. So I live in Idaho, so cool. 

Stacy Johnson: [00:14:36] Right. It’s it’s weird to not, I know it’s a beautiful place. Don’t get me wrong, but it’s weird that that’s one of the hottest markets in the United States.

Well, I hope you don’t get nailed on higher rent. 

Miranda Marquit: [00:14:47] Uh, me 

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Aaron Freeman: [00:14:47] too. I think greedy landlords are jerks. 

Stacy Johnson: [00:14:50] You’re the landlord, 

Aaron Freeman: [00:14:51] aren’t you? And you gotta find that right balance. Uh, because if you’ve got a good tenant, you want to keep them in there. You know, 

Stacy Johnson: [00:14:57] when I, when I was landlord Aaron, I thought the exact, it was way more important to me to have a good tenant than it was to get the ma you know, get the last dollar of rent because I had tenants, you know, that were crack heads.

I mean, and I’d rather have attended to, can take care of their own selves and fix the house if it breaks than to have to, you know, get every dollar this possible to get out of it. Um, as far 

Aaron Freeman: [00:15:16] as I think that that world bank with the 5.6 global growth, I think that’s pretty interesting. Cause, cause I think we’re really in the great turtle, slow recovery.

I think it’s, I don’t think it’s the great reopening. I think it’s, it’s a ridiculously slow 

Stacy Johnson: [00:15:31] thing. And I’ve noticed that investing that you seem to be a little impatient that you’re looking for instant responses, but this is going to go on for another year. At least like a herd of turtles. I fell. 

Aaron Freeman: [00:15:41] No, I’m not getting in-patient with my investing.

Not at all. Well, speaking of no, I’m actually, I’ve been trying to shift more towards the Miranda style, but because I’ve noticed there’s not a whole lot of movement. Um, and I don’t know if any of these other yayhoos about the 20%, you know, dips are correct or not. I’ve been trying to find those, those companies that are awesome and they have good deals.

Stacy Johnson: [00:16:05] I can’t wait to find out what, where Miranda style is, but unfortunately though, okay. I’ve taken a really quick break, but the instant that we get back, I’m going to find out what Miranda’s style investing is. And I’m going to do it too, like back. Okay. So here we are. Again, Aaron is using Miranda style.

Please tell us 

Miranda Marquit: [00:16:27] well, he’s kind of not, but, uh, because my maintenance style of investing of course is, uh, is the good old indexing. So, 

Stacy Johnson: [00:16:35] oh, that’s what he meant by. Is that what you meant arid by Miranda styling? 

Aaron Freeman: [00:16:39] Yeah. Yeah. I want to try to get over into that eventually, but I’m waiting until after this so-called correction to start doing it, 

Stacy Johnson: [00:16:47] humid, dotes coin investing, because that’s what I think of when I think of Brandon.

Miranda Marquit: [00:16:51] Oh yeah, totally 100%. 

Stacy Johnson: [00:16:54] Okay. And by the way, let’s transition right into our next, our next segment, which is what the hell we’ve been doing with our money over the last couple of weeks, since we last talked, uh, and you actually have bought, you just told me you bought some more doge coin. 

Miranda Marquit: [00:17:08] I did for funsies.

I took a hundred, couple hundred bucks and bought because doge dipped so low. And, um, do I really think that it’s going to be a longterm thing? I dunno. It depends. How long is Elon, Musk’s gonna to tweet about it and will he actually do anything about it? Who knows? You know, because the rumor of course is he’s getting involved with doge coin, helping them update their protocols and all the things.

And so like, um, But just for funsies. I just, I did, I bought a couple hundred bucks worth of doge coin. Uh, when it dips below 20, uh, 20 cents a coin, I bought some of that and, uh, just for funsies and there we are, like for the most part, I don’t know. We’ll see. I, if, if, if dos hits 35 cents again, I’ll probably definitely sell, uh, So, yeah, I also for fun, um, Erin suggested he was doing some of his research and he suggested a stock that he thought looked interesting.

And I thought for funsies. I would just use his labor. And so, uh, C H P T. So that’s a charge point, right? The, uh, payment process, the payment processing. Um, and, uh, so I thought that would be kind of fun. So I went ahead and, uh, I, I put about a thousand bucks into ChargePoint and, uh, it’s, it’s great. It’s been doing, it’s been doing well since we did it.

So nice pick Aaron what’d you what’d you 

Stacy Johnson: [00:18:41] pay for it, Aaron or, oh yeah. I’m up 28%. 

Aaron Freeman: [00:18:45] Are you really? Yeah, it was a, it was a, it was a good find. 

Miranda Marquit: [00:18:48] Yeah. So my, uh, my average cost per share was, was higher because, um, because I got in there after Aaron did, but my average cost per share, uh, ended up being, uh, about $30 a share.

And my total return so far is 8%. So not 

Stacy Johnson: [00:19:10] terrible.

Well, they’re 

Aaron Freeman: [00:19:14] both, they’re both a paywall for, um, charging your car and the actual installers of the charge stations. Yeah. 

Stacy Johnson: [00:19:23] Now I read something Aaron, when we were discussing this, uh, over text and I wasn’t responding because I hate talking on texts. Um, I looked it up and I read an article saying that there was too much competition than it.

Wasn’t a good. There 

Aaron Freeman: [00:19:36] is a lot of competition out there. Yeah. It’s going to be a matter of whether or not who wins out. And, um, there was another competitor of blink and blink is, I think they’re like a European company maybe. And they’re, they’re building here in America too. And then you also have, uh, companies let them sell like Ford, like, so ChargePoint actually offers fleet management for their charging systems.

And then recently Ford built their own fleet software. Or they bought a company to do that. So yeah, there’s, there’s a lot of, a lot of competition. It’s hard to see who’s going to win out, but kinda like. Bitcoin, you kind of go with the person that’s there the first and the biggest. So I went with them.

Stacy Johnson: [00:20:17] Cool. Well, here’s I D I’ve actually, I’ve done one thing since we had our last conversation two weeks ago about this stuff, I kept telling you I was, I was going to sell my Barrick gold. Oh, cause it was at a loss. So I could generate a loss to help offset some profits later. And I did do that. I sold Barrick gold and I bought Newmont mining.

So what I did was I sold something that I had at a loss and, but I bought something very similar do about mining. Also, they have more copper than Barrett. Gold does spirit gold is primarily gold. Although any gold miner does also mined copper. But anyway, so I sold Barrick, but Newmont the same day. So if gold had gone up.

Uh, you know, then I would have been okay because I was still at another company. It was like it, but at the same time, I generated a loss for tax purposes, because as I’ve just said earlier in this podcast, I plan on taking some major profits toward the end of the year. So whenever I see a loss in my portfolio, now I try to do a sale on that so I can sell it a loss, get, get a tax deduction.

That’ll help up set my gains later in the year. So that’s, that’s one thing I did do. Other than that, though. I don’t think I did anything in the last two weeks. In fact, I’ve only done 1, 2, 3, 5 trades this year. Wow. Yeah. Well, well, most of the stuff I own, I own 35 different companies now, maybe including mutual funds maybe.

Um, but I’ve owned most of them since. Two year, 2000 year, 2009. I mean, I felt I don’t stuff for long periods of time. And really I started buying stuff to share primarily because of this podcast, to be honest

and, and also I thought that I thought this market was relatively predictable in the sense that I thought it was going to go up because we were coming out of a really bad time. So I did want to put some more money into the market anyway, but I’ve got a lot of money in the market, more than half of my savings.

So I, don’t not buying a whole bunch, but here’s what I bought so far this year. Emerging markets ETF, which I’m about 3% on. I bought that in March. So not doing real well, but not during horrible, uh, the small cap value fund them about 8% on that’s Vanguard, small cap value. I just the other day, not, not real long ago.

Well, June 1st I bought, um, a Europe, small cap ETF. I’m down on that. I think I just, I think I bought that a little early. I still feel pretty good about it though. I think Europe, I think European stocks are gonna do well, and I think small caps can do even better. The big capsule. Um, and then, uh, oh, the, the global infrastructure fund.

I bought that back in March and have about 12% on that. Yeah, I think that’s, I mean, 

Miranda Marquit: [00:22:41] yeah, that makes a lot of 

Stacy Johnson: [00:22:42] sense. Yeah. I’ve never, I’ve never been a big ETF buyer. In fact, I don’t know. Oh, I own an oil ETF. Um, but I don’t, cause you’ve, you’ve persuaded me in that direction. Miranda. Usually I buy individual stocks, but I’ve been buying these.

Miranda Marquit: [00:22:56] Yeah, I actually, yeah. I mean, I really have enjoyed, uh, the ETFs just cause they’re, they’re easier to buy and sell, so it just, they just seem to make a lot of sense for 

Stacy Johnson: [00:23:08] me. Well, you know, I’ll tell you though, and maybe this is just me, but. I don’t see how you make a lot of money when you buy these broad-based funds.

You know, I mean, and I’m certainly not discouraging anyone from doing that. I mean, obviously it’s better to buy a diversified portfolio of stocks. It is to buy one, but I mean, look at the stuff you guys were just talking about, you know, you bought a stock, it goes up 1500. You know, in, in a month. Well, these, these ETFs don’t do that.

Miranda Marquit: [00:23:35] Yeah, no. And, and for me, it’s, it’s, it’s, it’s not about like making money fast. Um, it’s about, uh, you know, longevity and, uh, doing it over time, which is, you know, why, you know, I’ve, I’ve been able to build this portfolio. You know, 15 years or so, and it’s done really well for me. And now I just feel a little bit more comfortable branching out and trying some things with extra money.

But for me, it was just, it’s just about building that long-term, that long-term portfolio that long-term basis and making it fairly, fairly simple without having to think about it. And, um, just kind of going from there, if that makes 

Stacy Johnson: [00:24:18] sense, that makes total sense. And that’s exactly what you’re supposed to be doing.

And that’s exactly the kind of advice you’re supposed to be giving. For 

Aaron Freeman: [00:24:24] me, it’s about what are the young millennials and gen Z going to do because they’re going to be the new money. And, and I think they’re going to invest in different ways than the, uh, 

Stacy Johnson: [00:24:35] you know, I’ll tell you something, Aaron, I just, I either heard, or because I was in a lot of podcasts, either heard or read this exact thing recently about investing is different and you know what that tells me people aren’t paying attention.

They’re stupid because there isn’t. Oh, I remember it was some, somebody was saying something like, oh yeah, we used to buy stocks on fundamentals, but now we’re buying them on momentum. 

Aaron Freeman: [00:25:02] Why not momentum? I’m buying on ideals. So like I bought beyond meat and I’m up 32% on it. And that’s because I’ve been a meat eater all my life.

And I’m like, it’s not good for you at this age. You know, heart disease in the whole nine yards. And I’ve been trying a lot of them and I like them. They’re really good. But also I’ve noticed and read a lot of articles that that’s actually the way that the youth are. 

Stacy Johnson: [00:25:28] Well, that’s the way, oh, well, you’re talking about the youth it’s eating that way or investing that way.

No eating. Oh, go 

Aaron Freeman: [00:25:36] ahead. So that’s this literally putting your money where your mouth is, so, oh, I like that. 


Aaron Freeman: [00:25:41] Um, so if you have this, this whole generation or a couple of generations that are going to get more into plant-based food, That’s a win and, and same goes for like these, these Robin hoods and acorns and sofas and stuff like that.

I looked at the SoFi website and it’s a brand new concept for not concept buildings. It’s a brand new a bank it’s on top of all the other banks. And it’s got a lot of competition, but it was heavily geared towards young millennials and gen Z. 

Stacy Johnson: [00:26:10] Yeah. But you’re describing the way people have always invested this.

Isn’t a new way to invest. That’s why you’re supposed to invest that’s way this way. Everybody. By finding, uh, like looking toward the future and seeing what companies are doing well or, or could potentially do well. That’s, that’s what you always should have been doing. That’s what Warren buffet does. Dell does need almost a hundred.

Yeah, it’s all good. I’m on point you’re on point 

Miranda Marquit: [00:26:33] hurrah. Yay, everybody. 

Aaron Freeman: [00:26:36] I did. I did buy a penny stock though. Oh, just out of craziness. And of course it’s not, it’s probably something that’s not going to happen at all. But, um, so I was looking into, uh, photosynthesis, hydrogen. Okay. 

Miranda Marquit: [00:26:50] It looks nice. I like it. I like 

Aaron Freeman: [00:26:52] it using the sun to make hydrogen and there are, are a lot of, uh, super smart people out there trying to use LG.

To uh, to break apart the atoms there and produce hydrogen, and you can use saltwater, you can use wastewater, you can use fresh water, whatever, but doing it with LJ is just really complicated. And it’s it’s, but it’s, it’s kind of a tedious process. And so there’s a little company called what is it? Sun hydrogen figured out a way to do it with nanoparticles.

And they’ve already have a proof of concept, like a hundred, whatever, a hundred units out there, proving that they can do it. And a Germany company, German companies checking them out and they’re like, 8 cents a share. What’s 

Stacy Johnson: [00:27:30] the symbol of this company. Do you know? H Y S R H Y S R. I’m looking it up right now.

It’s at eight and a half cents, about 8.40 cents. 

Aaron Freeman: [00:27:41] So it’s pretty complicated to make hydrogen from. So they kind of come up with a way to produce hydrogen right on the spot. So the sun makes it and they get to store it. And there’s there’s, you don’t have to extract it from any kind of petroleum, you know, you know, it’s a.

Yeah. If they can get it so that it’s um, so it’s, cost-effective, you know, they might 

Stacy Johnson: [00:28:03] win. Yeah, well it’s cool. And the Sox, Minnesota is 34 cents. Which is what four times it’s its current price. Right. 

Aaron Freeman: [00:28:10] And I know it’s a future, it’s a future energy, you know, I think we’re all going to have all types of energy we’re going to use.

When we’re going to use solar, we’re going to use hydrogen. We’re gonna use nuclear. You know, we’re going to get away from the fossil fuels. So I figured now this will be my hydrogen, but where did you find that? Just digging around for different energy. 

Stacy Johnson: [00:28:26] And that that is cool. However, for those of you listening at home, my advice is not to buy penny stocks.

I also own a penny stock that I got on his tip, which is completely the wrong way to invest, but I did it anyway, just for fun. Um, 

Aaron Freeman: [00:28:41] but no, my, my, I only spent $99 on it. Like I’m not putting thousands 

Stacy Johnson: [00:28:48] of dollars in this, you know, by the way you guys, I have to tell you something, one of the reasons I don’t gamble as much as you guys do, and it’s not that I w um, by the way, for those of you listening, I’m not super rich, but I’m real.

I’m relatively well off as an investor compared to my two, my two contemporaries here. So in other words, my point is this, I would never put a hundred dollars into something. Because it wouldn’t make any difference if I was right. And then, and then I’d be mad at myself foes. Right. You know, let’s say I put a hundred dollars into something and it goes up to 500.

I’d be like, so, so generally if I do anything at all, I’m going to put a few thousand dollars into it. And that makes me less. That makes me reluctant to gamble. You see what I’m saying? Cause if I, if I can’t put enough into it for, to move the needle at some point doing it, and if it’s enough to move the needle, I don’t want to lose it.

So I ended up not doing a whole bunch of stuff like doge coin or that, you know what you just said. 

Miranda Marquit: [00:29:36] Yeah. Well, I think too, though, part of it is, is just, you know, um, you know, that calculated risk portion of it, but also just, uh, you know, as it’s like for me. Yeah. I threw a couple, I mean, my first original doge coin experiment was a couple thousand dollars and that went well.

Uh, and just for funsies, I put in a couple of hundred, but I do have a penny stock. Um, as well that I bought a while ago. So it’s not anything new that I’ve done recently. It’s a, it’s a, it’s a pot stock. And, uh, I just, I just need it to be decriminalized everybody to criminalize pot for that my pot stock.

And also my, and then I also have a different pot, uh, ETF that’s actually doing well well today. Um, anyway, but I think, I think. For a lot of people, um, you know, being able to put in 200 to $500, um, and see some of those gains is useful. Um, yeah. And then also I think part of the reason why I liked dollar cost averaging into indexing is this because it’s a strategy for building our portfolio over time.

And it’s something that you can do, even if you only have like 50 bucks. Uh, to start with, you know, and that’s how I started. Uh, when I, when I bought shares at my first index fund, it was 50 bucks a month. And that’s how I started was with 50 bucks a month. And then of course, over time I increased what I was investing each month, but it’s something that you can do.

So even though it seems small, uh, indexing with, uh, with dollar cost averaging is a really great way to start building your portfolio over time and start building that foundation. 

Stacy Johnson: [00:31:16] Yeah, you’re absolutely right. And if, and if I applied anything else, then I take it back. I mean, I, I was just saying, if you, all you can start with is five bucks and then.

By all means start with five bucks for sure. Absolutely. Yeah. 100%. 100%. Okay. Now I think we’re God we’re running. The time goes so fast and we do this. We’ve got just a little time left. We have a couple of your questions I wanted to get to. If you guys have the, have a couple more minutes, um, let’s do it.

Today’s heat Miranda. I found your show a few months ago and always look forward to the next podcast episode, by the way, as an aside here, this is a good way to get your question read is to tell, I guess that’s okay. I’m 50 years old and planned to work. 15 more years. I have a 4 0 3 B with three accounts with fees of 0.2, 9.75 and 0.65.

My question is what should I do about the 4 0 3 B knowing when running the numbers 20 to 25% of my final investment would be lost to fees. I have an additional 500 to a thousand dollars to invest. I appreciate your ideas and how to invest the additional money and hope to hear this question on an upcoming show.


Miranda Marquit: [00:32:27] so I, if you’re eligible, I’m a huge fan of the Roth IRA. You can find a lot of resources that charged, you know, 0.2, 5% for a Roth IRA. Or even, um, or even less. So, uh, I’m a big fan of the Roth IRA. Uh, the maximum contribution for 2021 is $6,000, but because you are 50 years and older, uh, you get that catch-up contribution of $1,000 bringing your eligible total to 7,000.

Now, I don’t know whether that’s $500 per month or a thousand dollars per month. 

Aaron Freeman: [00:33:01] Um, I mean, 

Miranda Marquit: [00:33:02] yeah, And, uh, but yeah, so, I mean, so if you can contribute up to $7,000 to a Roth IRA, uh, that is a tax, you know, when you withdraw it, there’s going to be after tax money. So your pay taxes today, but later on, you’re going to withdraw it.

And you also don’t have to worry about RMDs on your Roth IRA, which is nice. Now there is an income requirements there. So your income phase out range for taxpayers when you’re contributing to a Roth IRA for 2021, these things change every year, uh, is if you are. Uh, if you are single or head of household, uh, you, you have to be making $140,000 or less to contribute at all.

And if you are, um, married, filing jointly, uh, you have to be making. $208,000 or less. And then there are phase outs. So, um, your ability to, you know, invest the full amount phases out, but you do need to meet those income requirements. So $139,000 a year, if you’re single or a head of household. And for, uh, if you’re filing jointly that phase out range, it ends at 208,000.

So you have to be making less than $208,000. 

Stacy Johnson: [00:34:14] And yeah, by the way, if you don’t mind, let me clarify something too. Cause people who are listening might not know what this was about when, when they say they have a 43 B, which is basically like a 401k in the nonprofit sector. Um, they have a 43 B, they have fees.

They have three accounts. So three different funds within that 4 0 3 B and they’re paying fees of 0.29. So about a third of a percent, three quarters of a percent and a little over half a percent per year. For management. And then they say, well, when I run the numbers, that could be 20 to 20, my 25% of my final investment be lost a fee.

That must, that may be confusing to people, but if you take, uh, if you have a 401k or you have a four, three B, uh, or anything from an employer, you’ve got mutual funds in that account. And in those, in those mutual funds, you’re paying management fees, which are not always easy to find, uh, as the, as it compounds over time.

Those fees can be a lot. I did a story once standing in the showroom of a Ferrari dealership saying that the average person, the average 401k person will, will pay enough in fees over their working life over 40 years to buy a Ferrari. So even though these fees may look small and these actually are not really huge fees, um, they can really add up.

And obviously also depends on how much you’re earning, you know, because that’s, these, these fees come out of your earnings. So if you’re earning 0.29% and you’re paying 2.29%, you’re making nothing. But if you’re in 20% and paying 2.9 or 0.29, not as bad point being though, if you’re in a 401k or a fourth UV plan, check your fees.

And if your fees seem high, you could go to HR. Now you could say, geez, how come these speeds are so high in our 4 0 3 B plan or 401k plan. And you can, you know, try to get some other people involved and see if you can get lower fees for your, um, for the funds within that plan. So what’s my question. I got Keith when I read it to me.

Miranda Marquit: [00:36:12] I would love to read it to you. So Keith says I was listening to the podcast. Money moves to make an every decade of your life. And I have a question when you have to start withdrawing your traditional IRA, is it okay to pay the taxes with IRA money? All right. Fun question. 

Stacy Johnson: [00:36:29] Sure. It is. You can do that if you want.

As a matter of fact, when you start making RMDs, which by the way you use that word too, if some people might not know what it means, RMD is a required minimum distribution. Once you reach age of 72, you have to start taking money out of your retirement plans. Uh, and if, if you don’t, there’s huge penalties, I mean, monster penalties.

So you really have to start doing that. Now, let’s say that you’ve got your 401k or what does he have traditional IRA? Um, you’ve got that with a custodian. Uh, so in other words like Vanguard, let’s say, uh, Vanguard will notify you that you need to start taking that money out and they will also ask you if you would like for them to withhold taxes.

Uh, and in fact, they’re required unless you, unless you tell them otherwise they’re required to withhold 10%, uh, for taxes and maybe state withholding. So you do have to let them know that, uh, if you don’t want it and you know, there’s obviously there’s a disadvantage of using your, your RMD. You’re taking money out of your retirement plan and using it to pay taxes cause no longer in your retirement plan and therefore it can’t compound.

But you know, if you don’t have the money to pay the taxes, No problem whatsoever with it having, uh, your custodian, withhold the taxes and pay them for you. Uh, and again, just make sure you take out enough, but your, your custodian will help you do that too 

Miranda Marquit: [00:37:44] Miranda. Nope. I think that’s a, a good, a good, uh, point and a good thing to 

Stacy Johnson: [00:37:49] keep in mind.

Aaron, are you satisfied with those questions and answers? 

Aaron Freeman: [00:37:54] Totally. Although I have nothing to do with you. Weren’t you weren’t listening to K’s I don’t have 4 0 3 BS listed 

Stacy Johnson: [00:38:02] Roth. IRA. I hope you do have a, I have an IRA. Um, Nope. Don’t have one of those. There’s a topic for our next podcast. Oh my gosh. Let’s we’ll call it.

We’ll call that one. Shaming errands. 

Miranda Marquit: [00:38:18] All right. Let’s shame. Let’s shame the crxx out of 

Stacy Johnson: [00:38:21] Aaron. I’ve tried it lots of times, even on this podcast about his hair, it doesn’t really do it. It does how it says it has no effect. Uh, 

Aaron Freeman: [00:38:29] I wanted to throw some things out there that are pretty interesting. So, um, And as it made it a 1.1 million older workers exited the American labor force between August, 2020 and January, 2021.

That is interesting. I thought that was pretty interesting. Uh, it seems like they just, they got out either because of COVID fears or they just changed their ideas of how to live. And on the flip side of that 2.5 million new business applications were filed in 2021. As of may 

Stacy Johnson: [00:38:57] two, I was surprised. I think they were saying that more businesses were started in 2021.

Didn’t anytime in recently. Which was the surprise. 

Aaron Freeman: [00:39:05] It’s a good sign. I mean, it’s either two things happen either. It’s, it’s awesome that new businesses are rolling out and this great slow recovery or kind of a lot of flop businesses start up and not make it anymore. 

Stacy Johnson: [00:39:16] So, or people are getting, or people didn’t have any jobs to go to.

So they were starting their businesses. 

Aaron Freeman: [00:39:21] Exactly, exactly. And remember I mentioned earlier that $2.4 trillion were saved by us consumers. Um, and remember that, that, uh, the GDP, the consumer spending accounts for 68% of the GDP. Yep. So, um, that’s a sign of possibly 

Stacy Johnson: [00:39:40] good things to come. If you don’t go out and spend a bunch of money frivolously, then you’re not being a good citizen.

Is that what you’re saying? Exactly. Exactly. Let us hope that my wife, Sarah is not listening. 

Miranda Marquit: [00:39:51] Uh, 

Stacy Johnson: [00:39:53] Okay. We’re out of time, right? Yeah, I think we are. Okay guys. I’m afraid we are of time folks, but we’re never out of topic. Dig a little deeper. I told you you’re going to find links to lots more in photo show notes, lots more info.

So go there and tech, check it out. And remember if your goal is to make more, to spend less or retire rich, your online home is. Talks That’s where you also find show notes, money talks, And don’t forget to check out Miranda’s online home as well. That is Miranda, Mark Witt, M a R Q U I T.

Dot com. If you’ve got a question, comment or topic, you’d like to suggest, oh, just sit there. Tell us, email us at hello at money talks. That’s hello. Had money talks, And one last thing, if you appreciate what we do that, do something for us. Subscribe to this podcast and tell your friends too only takes you a couple of seconds, really helps us.

So if you like us, show us and subscribe and spread the word. I’m Stacy Johnson and I’m Miranda, 

Miranda Marquit: [00:40:51] mark 

Aaron Freeman: [00:40:52] wet. And I’m Erin Freeman. 

Stacy Johnson: [00:40:54] Thanks for hanging out with us guys. We’re going to see you right here. Next time.

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