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[SPEAKER_18]: Let's go to a live call, Richard in Santa Clarita.

[SPEAKER_18]: I want to talk about strategy in case of a recession.

[SPEAKER_05]: Yeah, hi, Justin.

[SPEAKER_05]: Thanks for taking my call.

[SPEAKER_05]: I'm a long-time listener and I might make a few quotes I heard, you know, Steve Sake, and since it takes you said as well.

[SPEAKER_05]: But in terms of preparation or portfolio preparations, I should say for a possible recession upcoming recession, or at least a very strong pullback.

[SPEAKER_05]: First of all, I know that Steve

[SPEAKER_05]: Always said, you might sell, do some trimming, take profit off the table, you never get out of the market because you never know what's going to really happen.

[SPEAKER_05]: No forecaster knows for sure.

[SPEAKER_05]: But one of the things to do, I would think, would be to set up some dry powder.

[SPEAKER_05]: You know, cash.

[SPEAKER_05]: I remember during the COVID recession, the short one, you know, as cash is king with the thing that was being said so much.

[SPEAKER_05]: So my question would be, what do you think of the chances at this stage of a very strong pullback recession?

[SPEAKER_05]: In a so, what percent of a portfolio should you have in cash that's ready to go?

[SPEAKER_05]: Because when the market, you know, the market usually goes up that takes the stairs when it comes down to some sense, it can take the elevator.

[SPEAKER_05]: What that percentage, I'm thinking maybe, ten percent to fifteen percent

[SPEAKER_05]: would be, you know, you can put that in a money market, also, or at least collect some interest.

[SPEAKER_05]: Given what's going on right now, what do you think in terms of this current environment, which should hold in cash?

[SPEAKER_18]: Yeah, well, I think if we are going into recession, which I do think there's an increasing likelihood that we would be in a recession sometime next year, I'm not going to go up in this year, but I do think next year is an increasing possibility.

[SPEAKER_18]: How much cash you should have is definitely dependent on the person the risk tolerance level, the goals for the money, how long term is it, how short term is that account, you know, if you're needing that money,

[SPEAKER_18]: In an ear term, then obviously you want to have much higher levels than cash than ten or fifteen percent.

[SPEAKER_18]: It was long term money, you know, ten fifteen twenty percent is not an issue, but I think it has more to do with your asset allocation because you really want to be in sectors that

[SPEAKER_18]: can continue to do well.

[SPEAKER_18]: There are certainly companies and broader sectors that can buck the trend.

[SPEAKER_18]: And do you want to be in the stocks that are remaining in relatively good trends, right?

[SPEAKER_18]: Uptrends, at least the neutral and kind of trading water during times when there's more pressure on the market.

[SPEAKER_18]: And so you can do things like that.

[SPEAKER_18]: You could buy puts, you could self-covered calls.

[SPEAKER_18]: That's a way to lower the risk of a portfolio.

[SPEAKER_18]: That's something to certainly consider.

[SPEAKER_18]: And remember, a lot of people think that a recession is a way.

[SPEAKER_18]: A recession is not always a way.

[SPEAKER_18]: Now, there can be pockets that are greatly affected, that go down considerably.

[SPEAKER_18]: I think of the session before that.

[SPEAKER_18]: And I think of COVID recession, that's kind of a one-off kind of a unique scenario, because it technically was a recession with shutting down the economy.

[SPEAKER_18]: But I kind of throw that one out.

[SPEAKER_18]: You know, but if you look at like the oh, two thousand jails and three recession, you had technology stocks going down dramatically.

[SPEAKER_18]: So you could have something like that where multiples contract considerably and growth slows in certain pockets of the market.

[SPEAKER_18]: But if you look at that period, the NASDAQ went down seven year, do you per cent where, but the S&P only went down about twenty percent, twenty five percent, I think it was and peaked the trough.

[SPEAKER_18]: which means that there's pockets in there that we're fine that didn't really go down much at all and many continue to go up.

[SPEAKER_18]: So I think it's more about a shift in your sector allocation and being overweight the non-secretable sectors.

[SPEAKER_18]: utilities, consumer staples, it's maybe reads, things like that, and having a shift towards that.

[SPEAKER_18]: And obviously, once again, there's still pockets of demand for maybe AI data centers, even though you might be in a recession, and there can be companies that continue to do well.

[SPEAKER_18]: So I don't think it's just, you don't think just cash.

[SPEAKER_18]: It's not just about that.

[SPEAKER_18]: It can be part of it, but it's about staying in the right companies and sectors that are still outperforming, that have good relative strength, et cetera.

[SPEAKER_18]: So I love your question, but also adjust your understanding of what a recession means for the market.

[SPEAKER_05]: All right.

[SPEAKER_05]: Well, thank you very much.

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[SPEAKER_17]: Eight, eight, eight, ninety, nine chart.

[SPEAKER_13]: I'm just in a local console.

[SPEAKER_13]: So I do hold two companies EXK endeavor and FFM for reminding and I've been holding it for quite some time for these silver-to-gold ketchup trade and I've noticed that it is doing well now and it is pretty volatile and curious.

[SPEAKER_13]: What you guys do for your silver positions, what it is rallying like this, do you bolden and take some off the top, do you wait for the ketchup

[SPEAKER_13]: I guess ratio is complete or are there some macro signals that you look for and then you start getting out of it completely just curious how you guys just want to get ahead start as Silver is rallying in the last couple of days.

[SPEAKER_13]: Thank you.

[SPEAKER_13]: Bye.

[SPEAKER_03]: So Silver has rallied a little bit.

[SPEAKER_03]: But it's still lagging behind the historical ratio of gold, right?

[SPEAKER_03]: You typically have seen this little push-pull dynamic between gold and silver, but that hasn't really happened recently.

[SPEAKER_03]: It's a little bit decoupled.

[SPEAKER_03]: It's been lagging gold for just about a year and a half now, right?

[SPEAKER_03]: Since the beginning of twenty twenty four, but that's on the back of gold's historic run-up.

[SPEAKER_03]: And so you have to understand the different dynamics between what drives gold prices and what drives silver prices.

[SPEAKER_03]: Gold prices are driven by primarily uncertainty.

[SPEAKER_03]: It's a haven asset, a hard asset that is historically for a very long time, been used as a store of value.

[SPEAKER_03]: Silver used to be in line with that, but it's more of the industrial metal now.

[SPEAKER_03]: And so the reason why you're seeing this divergence is because you have a lot of uncertainty and downward demand pressure from an industrial base.

[SPEAKER_03]: And so that's what's kind of lagged.

[SPEAKER_03]: Now your question is with the rally, what would we do?

[SPEAKER_03]: Well, we would treat silver the same way we would treat any other company we're invested.

[SPEAKER_03]: When you're up, when things rally, it is a tried and true investment strategy to sell at the highs by the lows.

[SPEAKER_03]: That is the goal.

[SPEAKER_03]: And so with any other company, you should continue to trim, continue to take profits, take off the table, further diversify into sectors that may do well in the short medium term, because you're right.

[SPEAKER_03]: It is incredibly volatile.

[SPEAKER_03]: Commodities are incredibly volatile.

[SPEAKER_03]: So when the going is good, take some profit.

[SPEAKER_17]: Thanks for the call.

[SPEAKER_17]: You are listening to an invest talk best of caller questions compilation program your comments and questions are always welcome call anytime eight eight eight ninety nine chart that's eight eight nine nine CHA RT

[SPEAKER_17]: Sirious investors are certain to have finance and investment questions.

[SPEAKER_16]: Hello and best talk.

[SPEAKER_16]: This is Jose from New York.

[SPEAKER_16]: I'm looking into buying a small position in Dollar Tree or Dollar General.

[SPEAKER_17]: And the best person to ask your question in the right way is you.

[SPEAKER_00]: Hi, I'm Bestop.

[SPEAKER_17]: I was calling in with a question on the stop Nike and twenty four seven rain or shine Justin Klein and Luke Guerrero stand ready to provide their unbiased answers.

[SPEAKER_18]: That is up into a little bit of resistance.

[SPEAKER_18]: You probably want a little bit of consolidation here.

[SPEAKER_18]: So this company does not capitalize itself with equity.

[SPEAKER_03]: It does not capitalize itself with debt.

[SPEAKER_17]: Your participation makes it in Vestock better.

[SPEAKER_17]: Let's play a call a question from eight to eight.

[SPEAKER_17]: I need an answer.

[SPEAKER_17]: This is James from Georgia.

[SPEAKER_17]: I was trying to call about to assemble SCCO.

[SPEAKER_17]: So don't forget to call in Vestock.

[SPEAKER_17]: I appreciate the show guys.

[SPEAKER_17]: Thank you.

[SPEAKER_17]: Eight eight eight ninety nine chart.

[SPEAKER_20]: This is a Special Invest Talk, Best of Caller Questions, Compilation Program.

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[SPEAKER_20]: Please call with questions.

[SPEAKER_20]: Eight-eight-eight, ninety-nine chart.

[SPEAKER_03]: It's like we got another live call, Larry from San Francisco.

[SPEAKER_03]: It was a question about rolling over an IRA.

[SPEAKER_03]: Hello.

[SPEAKER_14]: Thanks for coming to call.

[SPEAKER_14]: That's what you guys are doing for us out here.

[SPEAKER_14]: Yeah, I set right up from an employer, and it was a defined benefits plan, a pension.

[SPEAKER_14]: I rolled over the, it was about a hundred grand.

[SPEAKER_14]: through IRA fidelity.

[SPEAKER_14]: I hold about fifteen positions already.

[SPEAKER_14]: And I'm just wondering how to divvy that up.

[SPEAKER_14]: Of course, I hold.

[SPEAKER_14]: I'm heavy in tech.

[SPEAKER_14]: About half my positions are across that the mega seven or whatever it is.

[SPEAKER_14]: And I'm asking, how do I do I do I do I do I do I do I do I do I do I do I do I cost average month over month or do I just put it all in that one some forty five.

[SPEAKER_14]: Just looking I'm aggressive growth is my my style right now my best style.

[SPEAKER_14]: So I'm just looking for a second opinion on

[SPEAKER_14]: how to go about, you know, kind of dollar cost average in or just kind of throw it in lump sum.

[SPEAKER_03]: The research is interesting on this, but again, it's kind of difficult, right?

[SPEAKER_03]: Because timing is so hard, right?

[SPEAKER_03]: So time in the market beats timing the market.

[SPEAKER_03]: And when you look at dollar cost averaging versus lump sum investing, the research that I saw actually shows that lump sum investing have higher expected returns.

[SPEAKER_03]: Now, that keeps in mind that typically loves some investing is done on down days, right?

[SPEAKER_03]: And so, from a risk perspective, just given where we are in the market right now, we're pretty elevated.

[SPEAKER_03]: You have rising tensions in the Middle East.

[SPEAKER_03]: You have pretty much a Goldilocks scenario on earnings.

[SPEAKER_03]: If it were me, I would continue to dollar cost average in.

[SPEAKER_03]: Now, you mentioned that you have

[SPEAKER_03]: A lot of exposure to tech, so be cognizant of the risks you're taking on.

[SPEAKER_03]: Obviously, you're a growth investor, but you do have to be aware of some of those risks and how those companies would react should things move south pretty quickly.

[SPEAKER_03]: And so I would advise you to continue to be as diversified as you possibly can when you're reinvesting your money.

[SPEAKER_03]: Keep in mind, right?

[SPEAKER_03]: It's a good time to be patient, right?

[SPEAKER_03]: You can get pretty solid yields by keeping your excess cash in something like Escav and getting interest.

[SPEAKER_03]: And so you have the ability now to dollar cost average understand the risks of where we are and what is on their horizon.

[SPEAKER_20]: I wish you the best of luck.

[SPEAKER_20]: Thanks for the call.

[SPEAKER_00]: I'm hoping you'll give me your take-on-or-mat technology, ORA.

[SPEAKER_09]: Is it a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest into better stocks?

[SPEAKER_20]: Don't forget to call.

[SPEAKER_20]: In Best Talk, eight-eight, ninety-nine chart.

[SPEAKER_07]: This is a piece from St.

[SPEAKER_07]: Alan New York.

[SPEAKER_07]: Over the last few months I've seen my portfolio.

[SPEAKER_07]: Kind of go up at like seventy-five percent.

[SPEAKER_07]: I'm sitting on a lot of profits right now and over the last few weeks I've been taking a lot of chips off the table and I just started looking and I realized that I'm sitting on like thirty percent cash in my portfolio.

[SPEAKER_07]: I was wondering what you guys doing a situation like this where the markets a little bit fraught the equities is soaring on the taking profits but are you guys directly investing them like right away or are you playing like the long game and just kind of waiting and being patient.

[SPEAKER_07]: My gut is telling you to wait and be patient, but I also don't like sitting on that thirty percent cash because obviously could be growing as well.

[SPEAKER_07]: So just more of like a portfolio question.

[SPEAKER_07]: How do you guys read balance and it's time like this?

[SPEAKER_07]: I appreciate it and I'll look forward to hearing your answer to the podcast.

[SPEAKER_18]: This is a great question and very interesting one because cash in and of itself in the account isn't siloed.

[SPEAKER_18]: It's it's also you have to take the rest of the account in

[SPEAKER_18]: to consideration as well.

[SPEAKER_18]: So you said that you're up to seven, five, seven in the year.

[SPEAKER_18]: Obviously, you only get that type of performance if you're investing in aggressive positions, speculative positions.

[SPEAKER_18]: So you might have thirty percent cash.

[SPEAKER_18]: But that's seventy percent might be in very aggressive, speculative stocks.

[SPEAKER_18]: Smallmage the reactors and chip names and AI names and names that as we saw in twenty twenty two can go down a lot.

[SPEAKER_18]: So you're overall portfolio still might be risky even with thirty percent cash.

[SPEAKER_18]: So a lot does depend on what the rest of the portfolio is doing.

[SPEAKER_18]: Now, you're right.

[SPEAKER_18]: There's some frothiness in the market.

[SPEAKER_18]: But that doesn't mean you can't continue to go up.

[SPEAKER_18]: It might be a little harder because we're over bought, right?

[SPEAKER_18]: There's not a lot of cash sitting on the sidelines.

[SPEAKER_18]: There's a lot of leverage with margin loans, et cetera.

[SPEAKER_18]: And there's a lot of speculation within the options market, a lot of call option activity.

[SPEAKER_18]: That's the market that we are in right now.

[SPEAKER_18]: And is it good risk versus reward over the medium term?

[SPEAKER_18]: Probably not.

[SPEAKER_18]: But yes, you could be missing out.

[SPEAKER_18]: But if you put that money to work in companies that over bought, that are over priced,

[SPEAKER_18]: and then suddenly liquidity and flex, are you going to be getting out in time?

[SPEAKER_18]: So I would be looking to take that cash and find other opportunities in the market, broaden out your portfolio beyond just highly speculative names.

[SPEAKER_18]: Because there are other opportunities out there like that.

[SPEAKER_18]: Whether that's precious metals, you don't have to look at the rest of the portfolio and say, okay, you can use this cash elsewhere, maybe it's utility companies, maybe it's industrial names, where are you underweight?

[SPEAKER_18]: And that's where I'd be going to look for opportunities.

[SPEAKER_18]: So it's hard to be blank and say, use the cash, don't use the cash.

[SPEAKER_18]: A lot of depends on what type of risk you're taking, what opportunities, maybe you're not exposed to in your portfolio.

[SPEAKER_18]: And there still could still be places to deploy that capital.

[SPEAKER_18]: Because there are always good opportunities in the marketplace, sometimes they're very abundant, and other times not so much.

[SPEAKER_18]: Hopefully that gave you some context to what you think about whether you should deploy the cash and where you should do it.

[SPEAKER_17]: You are listening to an invest talk, best of caller questions compilation program.

[SPEAKER_17]: Your comments and questions are always welcome, call anytime, eight, eight, ninety nine chart.

[SPEAKER_17]: That's eight, eight, nine, nine, CHART.

[SPEAKER_17]: You are listening to an invest talk, vest of caller questions, compilation program.

[SPEAKER_17]: Your comments and questions are always welcome.

[SPEAKER_17]: Call anytime.

[SPEAKER_17]: Eight, eight, eight, ninety nine chart.

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[SPEAKER_08]: Hey, Jeff and I look at this Tyler from Kansas City.

[SPEAKER_08]: My question today I'll do with earnings forecast.

[SPEAKER_08]: I have a list of maybe thirty to forty stocks that have alerts of prices I find them interesting at.

[SPEAKER_08]: When the alert goes off, I reconfirm that I'm still interested in these names and then self-puts or go ahead and buy into the names if I don't think they'll go in any lower.

[SPEAKER_08]: Over the years, I noticed that a decent percentage of these alerts happen when an earnings or revenue forecast gets a revision to the downside.

[SPEAKER_08]: All my information sources seem to be late by one to three days.

[SPEAKER_08]: This gets frustrating when I take a position just to realize that forecast have been lower to a point

[SPEAKER_08]: that I would have lowered my target buy-in price.

[SPEAKER_08]: Who have you found to be the best original sources that indicate these revisions?

[SPEAKER_08]: And do you register to anyone specific for these type of forecasted earnings and or revenue alerts?

[SPEAKER_08]: Thank you guys.

[SPEAKER_08]: I'll be listening on the podcast.

[SPEAKER_18]: This is a great question.

[SPEAKER_18]: And this is an area where it's difficult for the average investor to get good up-to-date data.

[SPEAKER_18]: We use faxet, now we have, we're in our end, we're a financial advisor.

[SPEAKER_18]: We can pay for it, it's tens of thousands of dollars a year for this data and that they're doing is they're aggregating all of the earnings estimates from the major banks.

[SPEAKER_18]: We can see it, we can go in, we can see every single one, what the trend is, is it rising, is it falling, is it staying flat, what does it look like for this year next year, even the year after?

[SPEAKER_18]: We can see that pretty much a real time.

[SPEAKER_18]: And so that's how we do it.

[SPEAKER_18]: Now there are other tools that access some effects that's data.

[SPEAKER_18]: But you're not going to get the granular details there.

[SPEAKER_18]: And I don't know how fast they get an update from fax it, right?

[SPEAKER_18]: They might be some delay there.

[SPEAKER_18]: I'm not sure.

[SPEAKER_18]: So that's kind of the difficult separation.

[SPEAKER_18]: As maybe something where AI could help scraping internet for the most up to date earnings data.

[SPEAKER_18]: But as we know AI kind of

[SPEAKER_18]: Make sure you check where it's game coming from and check its sources.

[SPEAKER_18]: It should link its sources out.

[SPEAKER_18]: And then you can kind of dig into there.

[SPEAKER_18]: That's probably what I would do.

[SPEAKER_18]: If I didn't have something like that set, which I can go to anytime and just grab.

[SPEAKER_18]: So that's what we're at.

[SPEAKER_18]: Hopefully that helps.

[SPEAKER_18]: It's probably not a complete answer, but at least a direction you can go in.

[SPEAKER_18]: Thanks for the call.

[SPEAKER_16]: This is Dick from Hawaii.

[SPEAKER_16]: I was wondering if you could discuss the pros and cons of using a

[SPEAKER_16]: brief fifty one exchange to address concentrated positions with capital gain increases.

[SPEAKER_16]: and the benefits of that process.

[SPEAKER_16]: Thank you very much.

[SPEAKER_16]: Bye.

[SPEAKER_03]: So a three-fifty one exchange is you're essentially taking property, appreciated stock, concentrated position.

[SPEAKER_03]: You are shifting it, you're transferring it to a corporation that you create.

[SPEAKER_03]: If for an exchange for shares in that corporation, the corporation takes your carryover basis in the property, you take the stock with that same basis.

[SPEAKER_03]: Now, there are some benefits to it, right?

[SPEAKER_03]: You're deferring immediate capital gains taxes.

[SPEAKER_03]: You're allowing diversification within the business.

[SPEAKER_03]: So let's say you take your concentrated shares and whatever your company is and you sell those shares in order to diversify.

[SPEAKER_03]: You're getting that deferred taxes and it gives you control and liability protection, right?

[SPEAKER_03]: You can integrate it with your estate and wealth transfer planning.

[SPEAKER_03]: But they're costs, right?

[SPEAKER_03]: You're getting double taxation because it's a corporate structure.

[SPEAKER_03]: So you're getting a corporate tax rate.

[SPEAKER_03]: You're getting a dividend tax rate.

[SPEAKER_03]: The most important one, I think, for me is you lose your step up and cost basis at death.

[SPEAKER_03]: So you're in herders.

[SPEAKER_03]: We'll not get that step up and cost basis on those assets.

[SPEAKER_03]: And you have ongoing corporate compliance and administrative costs.

[SPEAKER_03]: You have to meet IRS control rules.

[SPEAKER_03]: And so who's it for, right?

[SPEAKER_03]: It's for people that are families, you know, families are closely held groups that are setting up a family investment company.

[SPEAKER_03]: It works well for those.

[SPEAKER_03]: situations where you wouldn't get a step up in cost basis at all is a good situation for there.

[SPEAKER_03]: But you know, for us, we help out clients all the time who are in a situation where they wanted to for taxes, that's the point of the deferred sales trusts that we use the DSTs.

[SPEAKER_03]: And so I think they're just other tools as well, where you can greatly benefit from that deferral without, again, some of those costs, the loss and step up in cost basis, and also the cost of just maintaining compliance.

[SPEAKER_18]: Thanks for the call.

[SPEAKER_18]: Now, there are general trends in generally the real estate market is slowing.

[SPEAKER_18]: Other pockets that can Denver, for example, Austin, Texas.

[SPEAKER_18]: These are markets that are very weak.

[SPEAKER_18]: Other markets, not quite as bad.

[SPEAKER_18]: Now, it comes to short-term rental market.

[SPEAKER_18]: I'm very weary of that market.

[SPEAKER_18]: Mainly because it hasn't really seen a true recession.

[SPEAKER_18]: The Airbnb VRBL market is really in its infancy in two thousand eight nine, right?

[SPEAKER_18]: I don't even know if it really existed at that point.

[SPEAKER_18]: Then really start taking off until, you know, the twenty-tens, mid-twenty-tens.

[SPEAKER_18]: And if you buy at the rate price and you buy the right low cow, there's not a lot of competition.

[SPEAKER_18]: You can make very good returns, but it's also kind of headache.

[SPEAKER_18]: It's hot, you know, clients have talked to it.

[SPEAKER_18]: Friends, family that have these type of properties.

[SPEAKER_18]: And it's a lot of work.

[SPEAKER_18]: It's own little business.

[SPEAKER_18]: It's basically a bed and breakfast.

[SPEAKER_18]: That's what Airbnb stands for, right?

[SPEAKER_18]: Air, bed, and breakfast.

[SPEAKER_18]: It's a lot of work, and you can get good returns, but you need to have the time and the discipline and the know-how to manage these properties.

[SPEAKER_18]: And then there are regulatory issues, locales, and then they change the laws, the rules, and that can hurt the value you're seeing that if you can, and Palm Springs area right now.

[SPEAKER_18]: So, are there opportunities sure, but you have to do your deep research and make sure you buy right, both on price and the right low cap.

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[SPEAKER_15]: I'm a part of the corporation that offers a cash balance program that we can contribute to.

[SPEAKER_15]: I believe it's pre-tech dollars.

[SPEAKER_15]: Personally, I can contribute up to seventy-five thousand dollars in pre-tech dollars per year.

[SPEAKER_15]: I am not really familiar with cash balance programs, so I guess my question would be do you know anything about them or can you help guide me and make an decision on whether or not I should be investing this money in the cash balance opportunity that they present or maybe put it somewhere else like the money market or somewhere where it's a little more liquid where I can use the money more at hand if I needed it.

[SPEAKER_18]: I love this question because it's not talked about very much.

[SPEAKER_18]: We do invest some cash balance accounts for clients.

[SPEAKER_18]: Now setting up those plans involves third party administrators, actuaries, it can be expensive to kind of set up maintain.

[SPEAKER_18]: It's also a place where you can set aside, you set seventy five thousand dollars for yourself, but some business owners, this is typically for business owners, and you might be part of, maybe one of many owners.

[SPEAKER_18]: And some can put hundred fifty two hundred three thousand dollars a year, there's some calculations there, that it is pre-tax, and you basically get to write that contribution off on your taxi gear, and those that are in the high tax bracket, that can be a smart play.

[SPEAKER_18]: So I would do it if you're on a high tax bracket, but when it comes to liquidity, that's a bigger broader question to your financial plan, right?

[SPEAKER_18]: What do you use money for?

[SPEAKER_18]: It was just long-term money for retirement, then cash balance is perfect.

[SPEAKER_18]: If you think everything that's money is for buying a house in the next couple of years, probably not.

[SPEAKER_18]: So it just depends on what this money is bucketed for.

[SPEAKER_18]: Now, you can invest it

[SPEAKER_18]: And anything you want when you do put the money in cash balance, then like I said, it's kind of like a personal trust and business trust, excuse me.

[SPEAKER_18]: And you know, we set them up at Schwab.

[SPEAKER_18]: You can set them up and you need a big brokerage firm.

[SPEAKER_18]: But like I said, it's usually connected to a a four or one K of some type.

[SPEAKER_18]: Think of it kind of like it's a personal pension.

[SPEAKER_18]: playing it in a way.

[SPEAKER_18]: These can be complex, but there's something you won't talk professional about, but like I said, you have the setup.

[SPEAKER_18]: It sounds like you, it's been set up for you, but the better question is, what do you need this money for in the near term?

[SPEAKER_18]: You need it.

[SPEAKER_18]: I wouldn't put it in.

[SPEAKER_18]: If you are earmarking this for long term, then I would utilize it.

[SPEAKER_03]: All right, here comes another question this time from a listener in Tennessee.

[SPEAKER_04]: This is how we from Nashville love your program.

[SPEAKER_04]: I really wanted to ask my employer recently started offering a raw-for-o-one gay.

[SPEAKER_04]: And they've always offered a traditional for-o-one gay, which I've been contributing to.

[SPEAKER_04]: My question is, should I start to transfer my funds into my raw-for-o-one gay?

[SPEAKER_04]: Or should I leave it in my traditional?

[SPEAKER_04]: I still do have a raw IRA that I've been contributing to amassing out every year.

[SPEAKER_04]: So any advice you guys would have in this, I would be grateful for.

[SPEAKER_04]: Thank you so much.

[SPEAKER_04]: Love your program.

[SPEAKER_04]: Okay, that's a great day.

[SPEAKER_03]: You can't really just directly transfer your money from your traditional for a one-k directly into your Roth for a one-k.

[SPEAKER_03]: You need to do something called an in-service in-plan Roth conversion.

[SPEAKER_03]: But like a traditional or typical Roth conversion, there are some tax implications.

[SPEAKER_03]: So because traditional IRAs, traditional for one K plans are tax deferred, right?

[SPEAKER_03]: There are pre-tax contributions.

[SPEAKER_03]: If you are doing this rollover, you have to pay taxes on the earned income in the account in the year that you are doing this rollover.

[SPEAKER_03]: And, you know, this can be beneficial sometimes, but sometimes you can push you into a higher tax bracket.

[SPEAKER_03]: You can actually end up paying more in taxes and have a higher tax burden because you decide to do this.

[SPEAKER_03]: I think this is one of the main confusion points for a lot of people is not understanding the math of this.

[SPEAKER_03]: If tax rates are the same, right?

[SPEAKER_03]: If your tax rates are ten percent.

[SPEAKER_03]: And you have a hundred dollars.

[SPEAKER_03]: And you're going to see a hundred percent return.

[SPEAKER_03]: Let's say you pay the taxes up front.

[SPEAKER_03]: Well, your ten dollars or your hundred dollars turned into ninety.

[SPEAKER_03]: Hundred percent return makes it one eighty.

[SPEAKER_03]: Okay.

[SPEAKER_03]: Let's say you pay taxes on the back end.

[SPEAKER_03]: Well, you're a hundred dollars.

[SPEAKER_03]: Hundred percent return is two hundred.

[SPEAKER_03]: Then you pay ten percent tax on that.

[SPEAKER_03]: That's twenty.

[SPEAKER_03]: You get one eighty.

[SPEAKER_03]: If tax rates are the same and the return is the same, a Roth and the traditional count and have the exact same return.

[SPEAKER_03]: And I don't think people understand that.

[SPEAKER_03]: The only way it is beneficial is if the tax rate

[SPEAKER_03]: is lower, if the tax rate is lower, if the tax rate has differences, that is where the benefits come from.

[SPEAKER_03]: And so you only want to do that conversion into that tax-free growth, if you have the ability to take advantage of lower tax rates at the time and what you're doing, the conversion.

[SPEAKER_03]: If this is your situation, if you have a low tax year on the horizon, if you think that your tax rate is going to be lower than it is in the future,

[SPEAKER_03]: Then yes, it would make sense to try and do this in service roll over.

[SPEAKER_03]: The next step would be to talk to your planned administrator, but understand the real cost here is the tax difference dial that in before you make a decision.

[SPEAKER_17]: Thanks for the call.

[SPEAKER_17]: On radio, on YouTube, streaming live on at vestalk.com.

[SPEAKER_09]: My question today is about the HME Equipment Services Inc.

[SPEAKER_17]: And for our podcast subscribers, if you're willing to take the risk in vestalk, if you're okay with that risk, with host and financial advisor, Justin Klein, and that volatility.

[SPEAKER_17]: Go for it.

[SPEAKER_17]: And co-host and portfolio manager, Luke Guerrero.

[SPEAKER_17]: This company is falling like a rock.

[SPEAKER_17]: It's down, fifty-two percent in vestalk.

[SPEAKER_17]: Every body wants a secure financial future.

[SPEAKER_03]: Richard, do you have a question about T-O-L?

[SPEAKER_17]: But getting there takes strategy, discipline, and the right information.

[SPEAKER_18]: What are what you think of the price of it?

[SPEAKER_18]: Go to Chris in Maine, looking at I-E-X.

[SPEAKER_16]: Hey Justin, I own it, just seeing what you thought of it.

[SPEAKER_17]: Invest talk is made better by listener contributions.

[SPEAKER_17]: So don't forget to call, eight, eight, nine, chart.

[SPEAKER_18]: Let's go take a voicemail call from eight to eight.

[SPEAKER_18]: Now, you know, I'm sure.

[SPEAKER_02]: Hi, guys.

[SPEAKER_02]: This is Eric from New York.

[SPEAKER_02]: Thanks for all the information that you guys give every day in your podcast.

[SPEAKER_02]: I'm a habit of the scenario on my hour and a half commute.

[SPEAKER_02]: You guys talk about investing in stocks and bonds and other other types of foreign investment products.

[SPEAKER_02]: I'm a typical retail investor.

[SPEAKER_02]: I have the typical retail investor apps that I use.

[SPEAKER_02]: I don't really have a financial advisor.

[SPEAKER_02]: How can someone like me actually go about investing in a corporate bonds or a municipal bonds?

[SPEAKER_02]: How can someone like me get involved in the actual bond market?

[SPEAKER_02]: I hear you guys talk about it a lot in terms of diversification, rate of return, everything like that.

[SPEAKER_02]: I actually don't really, I guess maybe I should look a little bit more, but I don't have a lot of exposure into the bonds.

[SPEAKER_02]: I'm just buying stocks, buying ETFs.

[SPEAKER_02]: Yeah, it could look into that for me.

[SPEAKER_02]: That would be great and I'll listen to it on the podcast.

[SPEAKER_02]: Thank you.

[SPEAKER_18]: Sounds good.

[SPEAKER_18]: Well, there are many ways to invest in the bond market for the average investor like yourself.

[SPEAKER_18]: You know, ETF is probably this simple way.

[SPEAKER_18]: Now, bonds are completely different beast than equities.

[SPEAKER_18]: So you really have to educate yourself on the risks that are there.

[SPEAKER_18]: The main two are credit risk, meaning defaults.

[SPEAKER_18]: When you buy an ETF for mutual fund or mutual funds that hold bonds and bond funds there,

[SPEAKER_18]: You get diversification, so you don't get a lot of default risk of individual names, because you're so spread out, but you can get yield spreads widened out, and you can lose money over short periods of time when you take a lot of credit risk.

[SPEAKER_18]: So understand that.

[SPEAKER_18]: And then there's duration risk.

[SPEAKER_18]: which is how long with the maturity length of these bonds that you're holding in that particular fund.

[SPEAKER_18]: So you want to really understand that and figure out how much risk you want to take.

[SPEAKER_18]: Then you can also buy individual bonds.

[SPEAKER_18]: Your broker probably has a bond desk.

[SPEAKER_18]: If you're at one of the major brokers, you can call them up and discuss, eventually buying a new individual bond as well, and they'll probably help you understand the risk there as well.

[SPEAKER_18]: So, a lot of ways to do it, but make sure you do your research before you fire on it.

[SPEAKER_03]: Alrighty, this is Invest Talk, and our show is about questions, so let us roll in another listener question now.

[SPEAKER_12]: Hi, I've heard past callers ask about questions about puts or leaks, and I

[SPEAKER_12]: You want to understand what a lot of those term mean.

[SPEAKER_12]: You're talking about different types of traits, but I don't have a full understanding of it, and I do want to learn.

[SPEAKER_12]: I've tried looking up some information about that online, but a lot of it is very technical or information that seems to be geared towards people who already know what that all means for YouTubers or maybe selling different types of courses, which if you have a pay option that you would recommend, I would do that.

[SPEAKER_12]: I don't mind buying a

[SPEAKER_12]: course it is informational and helpful.

[SPEAKER_12]: It's hard to find when it's legit, though.

[SPEAKER_12]: I was wondering if you might have any resources that you would share to people who are trying to learn and understand this that are trying to get a full understanding of the terminology, the different types of trades, how to apply them, what to look for that would tell them when to apply different things.

[SPEAKER_12]: I would appreciate that very much.

[SPEAKER_12]: Thank you.

[SPEAKER_03]: That is a very big and very important question that I don't think we have the time to dive into fully on this format.

[SPEAKER_03]: Now it is true.

[SPEAKER_03]: There are a lot of paid classes on these types of things and you at the top mentioned options puts leaps all of these things that are a bit more complex

[SPEAKER_03]: in terms of their strategy, then when you talk about just building a typical equity bond portfolio.

[SPEAKER_03]: And I can direct you towards any one of these paid services that can give you a lesson, right?

[SPEAKER_03]: They can help you learn about the basics before you move on towards another layer of complexity because a lot of the times the conversation is complex because the assumption is that if you're looking at these types of strategies, you have a foundational knowledge.

[SPEAKER_03]: But here's what I will say.

[SPEAKER_03]: That's this plugging investor talk a little bit.

[SPEAKER_03]: We have started on our YouTube to pick back up our series, the investor class from series.

[SPEAKER_03]: And what it achieves to do, what it aims to do is help to teach you about

[SPEAKER_03]: concepts that may be complex in a very simple way.

[SPEAKER_03]: And given that question, we will make sure that one of the next episodes we do is an explanation to try and simplify and help you understand all of these very complex top topics within the option space.

[SPEAKER_03]: And like all of our other episodes,

[SPEAKER_03]: It'll be available for free.

[SPEAKER_03]: So just head over to our Invest Talk YouTube channel that is in Invest Talk with two T's.

[SPEAKER_03]: Look for the Invest Talk classroom series.

[SPEAKER_03]: And we'll have that episode out to you as soon as we can.

[SPEAKER_03]: Thanks for the call.

[SPEAKER_17]: You've got two for the price of one.

[SPEAKER_17]: Justin Klein and Luke Guerrero are here and they're taking your finance and investment questions now.

[SPEAKER_17]: Eight, eight, eight, ninety nine chart.

[SPEAKER_03]: All right, let's keep things rolling and answer another color question now.

[SPEAKER_03]: Hello, invest talk.

[SPEAKER_03]: My name is Andrea Collin from Pacific Beach.

[SPEAKER_11]: My question is, is it better to reinvest the dividends back into the stock?

[SPEAKER_11]: or to get them deposited into your core account, even though if you're going to keep investing, five hundred to a thousand dollars a month.

[SPEAKER_11]: Swine here, you're taking on it, looking forward to the answer on the podcast.

[SPEAKER_11]: Thank you very much.

[SPEAKER_03]: The question is around sounds like drips, dividend, dividend, rather, reinvestment plans.

[SPEAKER_03]: And so the idea is, when a dividend is paid out by a company, you may be offered cash or you may be offered to elect to reinvest those dividends directly.

[SPEAKER_03]: Now, there are some cost and benefits here.

[SPEAKER_03]: There are some things that you have to understand.

[SPEAKER_03]: One of them is, well, it is best if you want long-term compounding and you intend to buy the same company to just have the dividends reinvest it.

[SPEAKER_03]: Right, there is a settlement time between when cash is delivered.

[SPEAKER_03]: And then you can buy the shares, prices move.

[SPEAKER_03]: If your intention is that you want to buy the same thing, well, it makes the most sense to just reinvest those dividends directly.

[SPEAKER_03]: But if you need income, right, if you need cash, if you want the flexibility to invest in a different name, if you expect the stock is maybe a little bit too high in your portfolio in terms of waiting, well, they need to want to take cash.

[SPEAKER_03]: The reality is, no matter what you do, tax is the same in terms of tax treatment, right?

[SPEAKER_03]: Dividins are taxed the year you receive them, reinvesting doesn't defer those taxes unless, of course, it's in a tax-advanced account.

[SPEAKER_03]: So I guess the answer is, it depends what you want to do with it.

[SPEAKER_03]: Just at a quick one, quick high level again.

[SPEAKER_03]: If you want to invest somewhere else from either cash, take the cash.

[SPEAKER_03]: If you're going to reinvest it in the name, just reinvest it using the dividend reinvestment program, you may even get a little bit of a discount.

[SPEAKER_03]: Thanks for the call.

[SPEAKER_17]: Have you heard about the new Invest Talk Store?

[SPEAKER_17]: That's right.

[SPEAKER_17]: You'll find great merch for the savvy investor.

[SPEAKER_17]: It's all there for you now at InvestTalkStore.com.

[SPEAKER_18]: Those are the back of the Invest Talk Voice Bank for this question that came in earlier in eight and eight and eight and eight and eight and eight and eight and eight and eight.

[SPEAKER_10]: I just don't know who's helpful.

[SPEAKER_10]: My name's Jim from New York.

[SPEAKER_10]: I have a general question about retirement account.

[SPEAKER_10]: I am currently a full time employee and I have a full three D.

[SPEAKER_10]: I also have a small business and self-employed as well.

[SPEAKER_10]: I can max out my full three B for my full time components and also start another retirement account for my small business.

[SPEAKER_10]: Can I contribute to two different retirement accounts like a FRA or another kind of a retirement account for my small business?

[SPEAKER_10]: Is that possible?

[SPEAKER_10]: Is it legal?

[SPEAKER_10]: Thank you.

[SPEAKER_18]: Well answer is yes, you can.

[SPEAKER_18]: Now there are limitations to it.

[SPEAKER_18]: There's limitations basically an income and total contributions.

[SPEAKER_18]: So this is something that you want to talk to you.

[SPEAKER_18]: They tax advisor or that's CPA or some other licensed tax advisor to help you with that because I have to add on to your income.

[SPEAKER_18]: But you can't.

[SPEAKER_18]: You can contribute to a four or three B or a four or one K or a TSP and contribute to an IRA or Roth IRA or a set IRA depending on what you qualify for.

[SPEAKER_18]: But it depends on your total income and that total contribution.

[SPEAKER_18]: So make sure you talk to a licensed professional before you before you do that.

[SPEAKER_18]: Okay, or an advisor, or a financial advisor.

[SPEAKER_18]: Like me, that would go over exactly what this looks like and help explain kind of where you're at within the rules of the tax code.

[SPEAKER_18]: Not tax professional, but, you know, the basics.

[SPEAKER_18]: But once again, if you know kind of intimately what that income really looks like.

[SPEAKER_18]: Thanks for the call a great question.

[SPEAKER_18]: A lot of you don't know that.

[SPEAKER_18]: A lot of you don't understand that

[SPEAKER_18]: It's not just your forum, okay, it's not just your fourth or be, it's not just even an IRA, right?

[SPEAKER_18]: You have limitations to that, the captive contributions, but it's always good to consult with the tax professional before you make that contract.

[SPEAKER_17]: You are listening to an invest talk best of caller questions compilation program.

[SPEAKER_17]: Your comments and questions are always welcome.

[SPEAKER_17]: Call anytime.

[SPEAKER_17]: Eight, eight, eight, ninety nine chart.

[SPEAKER_17]: That's eight, eight, nine, nine, CHART.

[SPEAKER_17]: This is an invest talk best of caller questions compilation program.

[SPEAKER_17]: Your comments and questions are always welcome.

[SPEAKER_17]: Call anytime.

[SPEAKER_17]: Eight eight eight ninety nine chart.

[SPEAKER_17]: That's eight eight nine nine.

[SPEAKER_06]: C. H. A. R. T. Justin Luke Johnson Clayton.

[SPEAKER_06]: So appreciative for everything you've done for us.

[SPEAKER_06]: Here's my question.

[SPEAKER_06]: Listen to your advice of the last ten years.

[SPEAKER_06]: I've been thirty days successful in my account.

[SPEAKER_06]: I have an investing account, this is a straight investment account, and a traditional IRA.

[SPEAKER_06]: My understanding is, as we go to the later part of the year, and I moved some of this into bonds and treasuries expecting a little bit of a pullback.

[SPEAKER_06]: As I switch my investment account, whether I pull it out or turn around and put it right into bonds, I will have to pay taxes on my game.

[SPEAKER_06]: Is that correct?

[SPEAKER_06]: And as I switch my traditional IRA and pull the money out regardless of my game.

[SPEAKER_06]: if I leave it in the traditional hyera and just move it into what my investment company gives me for stocks and bonds and treasuries.

[SPEAKER_06]: I do not have to play games on that.

[SPEAKER_06]: I only play games on that when I actually pull it out of the hyera area.

[SPEAKER_06]: This all makes mistakes.

[SPEAKER_06]: Look forward to hearing your answer on the podcast.

[SPEAKER_06]: Thanks again for all of your advice and everything you've done for us.

[SPEAKER_18]: Well, appreciate your kind words and simple answer to your questions are yes, you know, if an I read whether you have a gain or loss, the only tax implication is when you take the money out of it, okay, or if you do a Roth conversion and

[SPEAKER_18]: that is something you should talk about with your advisor if you want to call us we can help you discuss that and what that planning should look like so that is a strategy almost everyone should be looking at some sort of off-conversion strategy at some point typically between retirement and taking social security or taking your arm these etc so that's a more it's a deeper conversation but you're right

[SPEAKER_18]: moving money in and out of whatever within an IRA is not a tack does not create tax consequences but on a taxable account yeah if you have a gain you sell it hopefully you want to sell it at long-term capital gains so you have a lower tax rate there but you have to consider that as part of the decision making process right just because we have a market pullback or maybe markets get a little rougher doesn't necessarily mean that you should

[SPEAKER_18]: be crystallizing those gains.

[SPEAKER_18]: Not that, not a terrible idea, but it's in context to your full financial picture.

[SPEAKER_18]: So understand that as well, and hopefully your current advisor is helping you with that, if not, that you'll call with us.

[SPEAKER_20]: Got a question for Justin or Luke, you're the best person to ask it.

[SPEAKER_09]: Is it a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest me to better stock?

[SPEAKER_19]: Invest talk is ready, twenty-four-seven.

[SPEAKER_19]: I'll really appreciate it if you could give me an NP-point for a company called Metronic M.D.P.

[SPEAKER_20]: Call Invest Talk, eight-eight-eight-nine chart, or post your questions on the Invest Talk YouTube channel.

[SPEAKER_03]: Artil, let's drop in another listener question now.

[SPEAKER_01]: Hi, I want to thank first of all to Justin and Luke for the amazing show and all the information you guys are providing.

[SPEAKER_01]: Thank you so much again.

[SPEAKER_01]: What I want to know is in terms of long term investment, what kind of financial ratios do you guys or do want to typically look into and understand the company and to decide if this company is a go-no-go kind of a thing?

[SPEAKER_01]: Again, thank you for so much of the information and I keep hearing this for every day.

[SPEAKER_01]: Thank you guys again.

[SPEAKER_01]: Bye.

[SPEAKER_03]: All righty.

[SPEAKER_03]: What are some important financial ratios to look at?

[SPEAKER_03]: There's a lot.

[SPEAKER_03]: Right.

[SPEAKER_03]: When you're analyzing a business, there is no one size fits all thing that just tells you, well, this is a good company.

[SPEAKER_03]: This is not a good company.

[SPEAKER_03]: There are so many things to look at.

[SPEAKER_03]: When you're talking about looking at liquidity, current ratio, quick ratio, cash ratio.

[SPEAKER_03]: This is all telling you how much liquid cash or investments a company has relative to what its liabilities are.

[SPEAKER_03]: There's leverage ratios, your debt to equity, all sorts of leverage ratios that can tell you how do they capitalize this business.

[SPEAKER_03]: Does this company have more debt than other companies in its industry?

[SPEAKER_03]: There's profitability ratios.

[SPEAKER_03]: That's what margins are.

[SPEAKER_03]: Your net margin, your EBITDA margin.

[SPEAKER_03]: Your operating profit margin relative to your book value of your assets.

[SPEAKER_03]: Then you have your valuation multiples, your forward-looking price earnings, price to book.

[SPEAKER_03]: You have your efficiency ratios, your asset turnover, your inventory turnover.

[SPEAKER_03]: It becomes incredibly complex and incredibly difficult.

[SPEAKER_03]: And some of these ratios mean more for some companies than they do for others.

[SPEAKER_03]: Inventory turnover is going to mean a lot more for retail company than it is going to mean for a utility company.

[SPEAKER_03]: And so that's to say it is difficult when analyzing these companies to just say that there is one size fits all you have to have a holistic approach.

[SPEAKER_03]: And it's not just about how the company is doing, because most of the return of a stock is going to be how the market returns.

[SPEAKER_03]: After that, a lot of it's going to be how the sector returns.

[SPEAKER_03]: So little is dependent upon what the individual company does.

[SPEAKER_03]: And so when you're looking for these companies to invest in, you have to get the top stuff done first.

[SPEAKER_03]: What is your macro worldview?

[SPEAKER_03]: How does your theme, the theme over which you're investing, how is it informed by that macro worldview?

[SPEAKER_03]: Only then can start to dive into some of those critical ratios, profitability, cash, leverage to help you select appropriate companies for your strategy and your risk profile.

[SPEAKER_20]: Invest talk is a trademark of KPP financial, because of the nature of the interactive dialogue inherent in the format of this program.

[SPEAKER_20]: It's important for the listener to understand that not all comments made will apply to them.

[SPEAKER_20]: Specifically, nothing said she'll be taken to be investment advice.

[SPEAKER_20]: or shell statements on this program be considered an offer to buy or sell security.

[SPEAKER_20]: Because such advice is rendered solely on an individual basis, and at times, we'll require that the investor review a perspective before investing.

[SPEAKER_20]: Invest talk is a copyrighted program of Klein, Pavlis, and Peasley Financial, a registered investment advisor firm, which retains all rights.

[SPEAKER_20]: For more information regarding KPP's investment advisors, call one eight hundred five five seven fifty four sixty one.

[SPEAKER_20]: Thank you for listening and your comments and questions are welcome on our twenty four hour listener line at eight eight eight ninety nine chart