Ep 75: The Top Five Issues To Consider During A Financial Market Correction
The X's & O's
How can you prepare yourself and your family for a financial market correction?
In this episode, Matthew Theal, Brent Pasqua and Joshua Winterswyk discuss the top five issues to consider during a financial market correction. They will also share some strategies to help you out when it happens.
Matthew, Brent, and Joshua discuss:
The take on the new law that has been signed in California that could increase wages for fast food workers to $22 an hour starting in 2023
What a financial correction could mean for you if you are retiring in the near future
How to determine if your cash flow will change during a market correction
How to avoid reactive decisions during a downturned market (saving your retirement fund!)
And more
Resources:
Connect With RPA Wealth Management:
Transcript
Welcome to the Retirement Plan Playbook with Brent Pasqua, Matthew Theal and Joshua Winterswyk from RPA Wealth Management. In this podcast, we cover current events, retirement planning strategies. And provide you with the tools to help you build a successful retirement playbook in any political or financial landscape.
Join Brent, Matthew and Joshua as they navigate the issues that can make the later stages of your retirement plan, challenging and help you create the best Retirement Plan Playbook. Now let's get to the show.
Welcome in we're back. Welcome to the Retirement Plan Playbook. I'm here with the team, Matthew Joshua we're in the studio, and we have an outstanding topic today. We're gonna go through the top five issues to consider during a financial market. Correction. Not sure why we're, we're talking about a financial correction right now to you guys.
Oh, markets are down this year. Pretty much every asset class is down double digit percent. So probably good time to talk to listeners about some strategies to, uh, help them out. Yeah. Maybe timely. Uh, how are you guys doing with this heat wave? That's going on right now? Oh, I'm so hot. It's hot the first few days.
Wasn't too bad. I was, oh yeah, this is, this is cool. Like, I could do this by like day five. I was done like we're on like day seven or eight, I think. And I'm just sick of being hot, but the good news is I hear there's a hurricane coming. that's the good news. I think it just makes me feel like I'm ready for fall.
Like it feel like it's just been hot all summer. There's been like no break in my mind. And then it just it's ending with this huge heat wave. I'm ready for fall. I'm ready for jackets, sweaters. Let's get through this heat wave I'm done with the heat, but you guys say that, and we work in an office for the whole day during peak heat hours, and it's completely air conditioned.
And we're always having to turn the air warmer because it's so cold in here. It doesn't mean, I feel, I don't feel bad for everyone that has to work out in the heat. That's true. Or if I just still have to go out into the heat, so I'm, I'm looking out for everybody. No one wants to be in this heat. We don't have much to complain about though.
The 15 minutes I spend outside is too hot. Right. That's say I bring my lunch just so I have to go outside into that heat. It's it's like, if you're outside for five minutes, you're gonna be sweating. All right. Let's get into the hot take headlines. California, governor Gavin Newsom signed a new law.
That will point a special counsel. That could possibly increase wages for fast food workers to $22 an hour starting in 2023. Is this a good thing? Probably not. This probably is one of those things that isn't that good of an idea. I mean, it's nice to give fast food workers, a little extra money. That's cool.
That'll help in the short term. But this is a policy that's probably gonna lose to a lot of fast food workers. Losing their job. And sometimes, fast food work is something that you use as a first job, but it's also something you use as a career. If you don't have the necessary skills to go into other fields in life, and this probably means those people are gonna be losing their job in the long run.
And where does this money come from? Increased prices on the menu, right? Loss of jobs. They can't afford as many employees. It's also targeting, some of just the biggest franchises and restaurants that have the most employees. So some of like, even in, within this bill, the mom and pop shops, aren't taking advantage of this either.
So for the employees, it's not necessarily a good thing, even though the wages are going up. Yeah, no, it's, it's not a good thing at all. Um, it's gonna probably lead to job loss and you know, more robots coming in, less people out there flipping burgers. Serving fast food, I guess. And menu prices going up. So not helping with the already high inflation and expenses going up for households in California, personally, I feel like, you know, this is a good policy.
Like you understand what they're doing, they're trying to help people out. Right? Like, it's a, it sounds good. But I feel like for a lot of leaders in California, that economics 1 0 1 course was probably not taken in college or was forgotten about, yeah. This trickle down affects going to be very negative and it's just.
Not a good thing in, in my eyes. There's just gonna be so many issues with it. And you already saw us a lot of the, the restaurant franchisees owners come out and say that it's gonna be very difficult for us. Like they were against it. You're already seeing that pushback. Yeah. I don't know how you operate a business with such a massive increase to employee costs.
Like how do you offset that? I understand you could raise prices on the menu, but you can only raise 'em so much before people stop coming. You know, there's not a lot of factors that you can change in inside of that kind of fast food chain. You raise the cost on employees, the cost of employees, that much you're in trouble.
You're gonna force change. Like Matt said, robots, people getting laid off. I don't need a ton of fast food, but I'd imagine there's probably five to eight workers there. Um, as this bill goes, you know, by 2025, what there's gonna be two actual humans inside the store. Correct. Right. So. And maybe it's just pick up only, you know, you no longer have drive-throughs or you no longer have in restaurant, you just pick it up, right.
Or get it delivered. Yeah. All right. So let's get in the other headline. Apple announced its iPhone 14 lineup. The tech giant focused on safety features for the iPhone 14 lineup. Adding sensors at can detect car crashes and alert author. Many analysts had expected to see apple increase prices for some iPhones, but the company kept starting and kept keeping prices the same compared to last year, both for the high end model and the, the cheaper model.
It also dropped the cheapest iPhone mini version. Why would apple not raise these prices? This is really interesting because it, it's not normal that analysts are wrong like this, especially on apple, which is one of the largest companies in the United States that has a very, um, large supply chain. I mean, they could pretty much predict exactly what components are going into the next model of the iPhone and for them to, widely expect a price increase.
And then for apple not to do it is really interest. I have no good answer as to why they didn't raise prices. I've heard some people say like, maybe, you know, they're trying to give the consumer a break. My guess is they could probably they're apple and they could afford not to raise prices. Keep it the same.
Get people continue to lock in, upgrade their phone, buy more software services, buy AirPods, buy a Mac, buy a watch like. The customer's valuable by phone cases, like not scaring off new customers either. Right. The price was the same. I was expecting it to go. That might even entice me to get an upgrade.
That's what I was looking at. I was like, oh, I thought I was gonna have to pay, you know, 200 $5,000 more. Maybe they said that, did they increase it the last couple times? I believe so I think it's increased almost every time that they've come out with the new iPhone. Yeah. Especially the high end model.
One thing I noticed though, they kept the same chip. I'm not sure if that has any effect on it. Oh really? Even in the high end model, the a 15 or something like that. Yeah. The high end might have the, a 16. Does it maybe. I don't know fact that well, yeah, let's go look at that, but does it do PE do I guess my question would be, is do they even actually need to raise prices when they have people who every year or every two years, or every three years are getting in a new phone, they're gonna get a new case.
They're gonna get at the new wallet. They're gonna get the new AirPods. Like you just have, they're gonna get the watch. As long as you keep that brand loyalty. Does the price increase really? Right. How, how much revenue does that really generate by increasing it a hundred dollars or $150 as long as you can keep the customer?
Yeah. I saw an interesting stat from, uh, this tech blog ERY, um, by this guy, Ben Thompson. And he said a new iPhone sales worth about $2,000 of revenue towards apple. And I mean the top end phone costs, 1300. So people are making it up by buying those accessories, adding more services. Things like that.
Yeah. That's what I would want to know from apple is like, what is each person's value to being a brand loyalist? Cuz if you have apple and you have all these things, plus you're paying for the cloud every month, right? Cuz you're storing your photos of your kids and then you have any other subscriptions that come with any other apps or any other software that you have with them or, or TV.
If you're whole, if you're an apple phone person, how much are you actually driving towards apple every single year? Oh, probably a ton of money. And they also have the, they have the 4 99 TV service. I got everything. It, it would be interesting to see that number, cuz I know that they probably have that data like revenue per device, per customer.
Correct. It would be very interesting, but maybe they're also forecasting a little bit. Right? I mean inflation's high, we're seeing, just personal finance for households in America. Go into a, kind of a worse situation and this was a, a good move for them. And I think there's already a long wait time for the phones.
They, they did the pre-order and I think it's what, several weeks, months, several weeks out. Yeah. And then they also have apple arcade, which is another monthly subscription that you can do on the phone, which my kids utilize in. Is that good? I actually have never used that. Yeah. So it's kind of like Netflix, where you have a bunch of different video games or apps games.
That you can download on your phone and it's all part of the monthly subscription and the kids can play the games. They get tired of 'em you delete the app. And then you're on to downloading when a couple of other new games that they. Very cool. So you just get to, they have a whole library of games within that arcade app.
Right. And you're not having to do in-app pur purchases, like, you know, so many other app apps subscription. Yes, that's cool. I'll probably be paying for that in three or four years. yeah, me too. That's what I was thinking as well. All right. Let's get into the retirement planning corner. Today we wanna talk about, you know, what are some of those issues that we should consider during a financial market correction and obviously being in a market correction right now.
A lot of people are facing some similar concerns. And the first thing that we probably want to, you know, really address and issue, number one is, are you going to take a distribution from your investment or retirement account? You know, you may need to take a distribution for a lot of different reasons.
Maybe you just need money. Uh, maybe you need to take a required minimum distribution. But there's a lot of reasons you could need to be taking out. Are you going to your brokerage account for that? Are you going to be taking a distribution? Do you hold off? How, what do you do during this year? Yeah. And this is an issue because.
Account values are down. Stocks and bonds are both down. Stocks are down, over 14% bonds are down over 11% year to date. So you taking that distribution compared to taking it back in January is taking a higher percentage for the same amount of money you're taking out from the portfolio. Now that account values are down.
So this is an, an issue through this time. Absolutely. And, and like you said, the bonds being down really is killing people right now. Um, it it's actually not stocks as much as it is bonds. Bonds down, you know, 10%, 11% is pretty unheard of, but the good news is there's solutions to this problem. Um, if you're working with an advisor or your proactive yourself one pretty easy solution is switching your some funds in your account to, um, more, a short term cash bucket, right?
So utilizing the money market account, maybe utilizing UHT bills or six month bills or nine month bills to hold your cash, you get a little interest and then you could take that deposit. You could also do the, the bucket system which I know Brent, you're big proponent of working with clients.
How's that? So essentially you could let's say like ladder your investment portfolio so that you have stuff that's more short term. That's near the bottom of the ladder all the way up to things that as you get higher in the ladder are more long term. And right now, while things that are closer to the bottom of the ladder are being affected less by market volatility.
You potentially could be selling off those shares right now, because they're not impacted so much by the market. And that's money that you would potentially utilize right now in the near term. Yeah, absolutely. And, and I know you taught me that and I utilize that with a lot of my clients as well, but I know in a previous podcast, in and over the, this year, we've talked about that cash has been really the best performing asset class.
And so if you do need money and you can avoid selling positions, do you use your cash? Do you use some of that emergency fund possib? That's a really good point because yes. Right. You want to take from the asset class that isn't down, whereas down the least. So you're getting very granular on what you're, where you're taking your money from in these market correction periods and cash could be the time to be used right now.
I mean, in this scenario, are you avoiding selling positions as much as. Yes. And also just because, like we saw inflation's high, right? We haven't dipped into that yet, but so things are more expensive. Your cash flow is changing. We're gonna talk about that in just a second, but is it a time where we're not selling or taking even less income because this is an issue.
Count values are down higher withdrawal percentage. We need to be making changes. I agree. Um, let's talk about another issue that you should consider in a financial market. Are you planning to retire in the near future? And if so, What could that mean? Well, the issues here, we know it's the major headline so far here to date, right?
Market prices in our financial markets are down. Inflation is high and also interest rates are higher. Right. So if we're looking to relocate, um, move, purchase, anything on credit, we know we're paying a higher interest rate, which means higher payment. Yeah. There's some really easy solutions here. And unfortunately, most people don't do.
Number one is you probably need to contact an advisor and build out that financial plan. Cuz if you do, that's gonna give you the confidence to retire. Most people who come hire us and who haven't built a financial plan probably ended up working somewhere between two to seven or eight years too long because they never had clarity on their financial situation.
And then from there, right when you're going into a volatile market, It's time to make those adjustments to the portfolio. You had 95% stocks, 90% stocks, you know, what's your overall asset allocation. Cause if you're going to retire, you're at, call it a hundred percent stocks, market drops 50, 60%.
Like some people are predicting, well, there goes your retirement account. There goes your funds. You're down now. So you have a million bucks, you know how five. But planning for this also could prepare for you to just say, I'm gonna take less income if that does happen. Cuz I understand the way the portfolio's constructed.
Yeah. But most people don't operate that way. What they're gonna end up doing is they're gonna sell when their accounts at 500,000 and now they just ruin their retirement. They're gonna be working until 75 80 because they didn't contact someone to get help. They're never gonna make the money back. No, absolutely not.
I feel like there's so many key planning techniques that you could use right now in this market. If you are planning to retire and you're in that last year or two, where you could be looking at your post-tax brokerage account at positions that are at a loss, maybe selling off some of those positions and getting the tax benefit, but then also making a contribution into your IRA or possibly increasing your contributions into your 401k plan, knowing that you're probably coming near retirement.
So you're, you could possibly get a pretty substantial tax savings, right. Yeah, absolutely lot, lot of good tax rate, a lot of good income strategies too, right. Bonds, geez. You know, three and a half, 4% like sign me up. I haven't seen her retired, you get 4%, three and a half percent of bonds since like, 2007, a lot of good changes you can make for the future.
Absolutely. These, the things we do now are going to put us in a better situation going forward. Are you seeing for clients like yourself, that it with the market being down, let's say 15 to 25%, right? That people are, should, or needing to delay retirement because of where the market's at? No, but I mean, our clients took the time.
Right. They put the plan in am I seeing some clients that might need to adjust their income because they're, they're already withdrawing a little bit and it might be a little difficult conversation going at 23. Yeah. Any good advisor is gonna have the income conversation with you. If your advisor's not, you're gonna end up writing outta money and then you're gonna be really.
so, yeah, there'll probably be a few difficult conversations in 2023, if markets don't turn around. Uh, but we knew that was gonna happen. We built that into the plan, but you've been looking at it from just a year to date return 15%. We don't like that. It's been a really ugly year, but like guess 15%, really 40, 50%, like in 2008 or even 35% in 2000.
No, it's nothing. I think what is gonna end up really grinding people and frustrating them is the length of this bear market. Yeah. Cause this, this bear market's actually been going on since last year. Um, that's that's when the market kind of peaked out. So. , you know, it's wearing on people, we're almost a year into this and you know, there still might be a year or two to go.
Right. I can understand, um, why people may be scared to retire at this time though with it being down 15, 20, 20 5%. Because if you think about that, you're ready to retire at the end of this year. And you are planning on taking three, four, 5% outta year investments and going into retirement for cash flow for your income.
And now you're down 20, 25% and you're saying. That income that I was planning on having was gonna take me to the, through the first two or three years of retire. is now lost in the market. Now I've got a delay. And so if you really didn't plan correctly, if you're not running it through software, I think it'd be really hard to make the decision to retire in a down market right now.
Sure. If you don't, I agree with that though. If you don't have that plan in place, it's, 15% can't scare you, it's also not, if you are planning or planning for even the next couple years, shouldn't, you know, really scare you too much issue number three, will your cash flow change?
So this is an issue cuz cash flow, like we talked about on this podcast a lot is one of the biggest factors in determining a successful retirement. So not only, you know, does cash flow account for income, but it also accounts for expenses. So with all of these changes in a market correction, like we're in now, we really have to analyze if this cash flow is going to change and this is why it's an.
Yeah, so tons of solutions here. This one really isn't my favorite topic. Uh, I know Josh more, the cash flow budget guy, but when we look at it, first thing to do is probably reexamine that budget. And I actually did that myself personally. So I've been saving in my daughter's college account and I was saving what I could afford in, 20, 19, 20, 20, 20, 21, but prices have gone up.
So I'm feeling, a little bit more tight in the pocket. and I ran projections based on how much I already had in there, cuz my deposits have been pretty large. And she's got some really nice gifts from her grandparents for her birthday and I was contributing probably more than I should have.
So I was I'm able to back that off now cause I ran those projections and I'm able to, divert $200 a month to another expense category that is. I'm over budgeted, maybe like groceries, cuz they went up. Yeah. Or, or gas, you know? Cause good job, man. Geez, that doesn't happen too much. We don't see too much, too many people over contribute to 5 29 plants.
So good job. Yeah. You know, it's just gotta pay for USC, right. but it doesn't, it feel like right now expenses aren't going down at all. I know inflation's kind of maybe slowed a little bit, but it still feels like things are so. They are. And you, you can see it. I think though, um, I do like the co topic of cash flow and, and I don't like to use the word necessarily like budget, but just creating like the awareness of spending.
Right. If we're not looking at our, our. Online portal. If you're not syncing up the accounts, like we talked about to review transactions and categorize them and track that history well now is just again that good time to understand how your cashflow has changed, cuz like the mental accounting could be there.
You know, I'm spending more, but how much more am I spending? And like you did Matt and your example, you were able to with some awareness, adjust some of the, expenses that were going out and reallocating them, putting you into a more successful situ. I I, and I think that's such an important point because I mean, during this time, if we are in going to be in this financial condition for a longer period of time, then probably looking at the budget, examining what you have going out.
and where you're needing to spend more on is probably gonna be extremely helpful over the next three to few years. Yeah, absolutely. And if it's really tight, I mean, there are gonna be people out there where these inflation numbers and the increase of expenses are really going to modify your cash flow.
Prioritize those obligations take advantage of maybe some altered payment scheduled or extend some due dates like for your mortgage. Like there are some short term creative strategies to where you don't have to feel so tight as well. Um, if this has really affected you, I mean, you're gonna be paying $12 for a big Mac.
Now big. Mac's not worth $12. Um, there's one other side of the equation. That's income. You know, when you're working in income's one thing, but when you're retired, you have a lot of control over your income. And like Brent was saying, what bucket after tax or pre-tax you take your income will have a big impact on your taxes.
So you could potentially save money if you allocate there. But the one thing I wanna talk about a lot of our clients do do social security, delay tactics. That's very popular. And I think we're gonna get to a point where we're gonna start having conversations next year and probably into 24 with clients like, Hey, it might be actually more beneficial for you to turn on your social security at 65.
I agree. Instead of taking that extra money from the portfolio so we could let the portfolio build, build back, gain those shares on dividend reinvestments and grow for you. Cuz right now I would probably say the expected future return of the stock market is higher. Then your return from roll and social security roll up.
Makes sense. And during the last several years, well, we have worked with clients that have delayed social security. We have, um, used the portfolio for income, and essentially now looking back, like we had strategized over, we were selling shares at higher prices to create their income while social security was rolling up at 6.2, five or 8%, depending on what age you.
and now we're seeing that portfolios are down. We're not really wanting to sell a lot of positions that are down right now. Why not just use social securities money? I think it's a great planning strategy. As you kind of look at that transition, probably we'll reduce your taxes to yes. Uh, let's get into issue.
Number four. Do you feel like you want to panic out of your investments? This is gonna be common in any market correction. And it's really an issue because we know reactive decisions could lead to your plan failing, right? And it also could lead to lower expected rates of return. We just talked about how the projected rate of return now is potentially higher.
So, you know, making those reactive decisions or panicking could lower that expected rate of return of the portfolios going forward and really hurting the probability of success for your retirement. So the biggest thing I've realized from working with clients and being in this industry for the last 10, 15 years is most people only think about themselves.
They don't think about the world as a whole. So they, they say, okay, they look at their portfolio and like, I am down 25% or 20%, I've lost $50,000. They usually put in dollar terms course. Most people do not think in percentage terms. And so they start. To think, I bet my neighbor's still doing okay. Or I bet my brother's doing okay.
And they fail to realize that when the market is down, when financial markets are correcting, like they're doing right now, everybody around you is down and they might even be down more than you. They might even if they aren't working with a, a proper advisor, they've probably lost a ton of money. I mean, Peloton stock went from one 60 to 10.
You know how many people bought Peloton during the pandemic, because it was going up for the stock. It's never getting back to one 60. You'll be lucky if it sees $20 a share again, they're coming out with the rower. I, I, I don't think that matters, but the point is it's not just you, it's normal.
Everybody's down. It's normal to want to panic out, but don't do. And I think that you make a good point, cuz this time is very kind of unique. Right? We have stocks and bonds both down almost like equal. We know everybody's down, so it's okay. Like you're saying like here's that awareness like, look at your statement.
Yes. We don't like it to be down, but everybody is. the only people up are the people who are literally trading dollar are long, the dollar, which means they bought dollars against other major currencies. And, you know, we all get paid in dollars here in America. So yeah, we're doing well relative to other countries.
But no one's trading currency in their 401k. I really gimme a break, but I think it's the psychology of it though. Nobody likes to have less than what they had before. And then there's almost that fear that if it's gone down this much, I could lose everything or I could lose most of it or, or how much more am I gonna lose before this stops.
And they don't realize that the construction of the market is, again, you're not losing the quantity of shares that you have. It's just price per share is down. And it's, to me, it's like a house, you know, if you're in a $500,000 house, and the house drops to 400. You're not selling the house just because the house is down.
Probably don't even notice you don't that's what's different about stocks and bonds or priced daily, your house isn't cause your pro your house value probably has dropped. Yeah. Well, you can go on Zillow daily. I mean, do you get ready for it to drop more? Yeah, I saw on the TV, CNBC, 6% 30 year mortgage, who's paying a million bucks for a home at a 6%, uh, mortgage rate, nobody.
And I think just like you said, the two human behavior. When we see the value drop. When we see change, we want to react, right? It like almost promotes us to react, but that we know historically has not worked. Right. Those reactive decisions, reactive decisions are going to lower your expected rate return.
And I, I think this is where, uh, an advisor comes in handy because if you're a client and you're having these concerns, you need to talk about it. Because that's what we're here for. And if you don't have an advisor and these are happening, and then you're second guessing yourself, you need to get an advisor because it's going to weather this storm.
That's exactly what I was gonna say. So, and to piggyback what you're talking about, if you are feeling like, Hey, my portfolio's gone down too much. I can't, I can't take it anymore. Reach out to an advisor. You're most likely taking too much. Whether, you know it or not. So there's two ways you could be doing this one.
So let's say you have a hundred percent of your money in an S and P 500 index fund or whatever. The, equity us equity fund is in your 401k. And you got, you know, a million or 2 million bucks in that fund markets down. You're probably down, two, $300,000. It's a lot of money, right. You're probably have just too much in stocks.
You need to meet with an advisor reallocate that 401k just don't don't reallocate it. Right. What? Well, it depends on the client, right? Cause there could be more downside. I think it always depends. Yes. Seek help. And then the next thing is maybe say, Hey, I have an advisor right now, but you know, my portfolio is still down a lot.
Like, Matt, Josh and Brent are saying the market's down 15%, but the funds in my portfolio are down 30%, 40%. Chances are you have a bad advisor who is selecting funds that just aren't appropriate for your situation. So you probably should also seek help. No, that's good, great point. And I just think that that volatility is to be expected.
I think seeking help is the, the right kind of next step. And I also think that this is a good example for the future. We're gonna go through another financial correction you know, through retirement or even if you're younger and through your life. So this is a good test of what your risk tolerance.
Were you stressed out right now over or over the last seven months and going forward, how are we gonna allocate the portfolio to avoid any panic selling or reactive decision? So this is just a good kind of example, or test for yourself going forward of how the portfolio should be allocated. When I get a cavity, I see the dentist.
Yes. When there's a financial market correction, see the advisor. Yeah. And, and to put it in perspective also, I mean, I looking at my portfolio, there's so many times where I come to you guys and lean on, what should I do? Should I sell these positions? Should I take the tax law? Should I make this move?
Should I make that decision to, to make a change? And I lean on you guys as advisors to advise me on how to. because I think that's so important to put it in perspective during that time, because you don't want the psychology and behavior to interrupt decision making. You're telling me, you guys made me buy TV last week.
but we know money is emotional. Like let's not a avoid that. Right. We know it is. So, you know, having a conversation and bringing up that awareness is good. Absolutely. Uh, let's get into issue. Number five. Do you have excess cash and savings? The issue with this is basically opportunity costs. You can use that cash to service, maybe potentially high interest debt you have also just pay for a large purchase that you're planning on financing or buy financial assets.
Like we talk about a lot on this podcast. Yeah, absolutely. This is a good one to wrap up on. I, I think it's pretty short, but you know, most people always say, Hey, I'm waiting for, you know, a market correction or I'm waiting. This financial storm that so and so on Fox news or CNN is predicting and Hey, it's here.
Yeah. Don't don't sit on your hands. Don't don't and also like, don't be afraid to use cash right now as interest rates go up, you know, a lot of people lean on financing and oh, when financing rates were really low, one of our first strategies is like, let's just get a low interest rate home equity line in credit or low interest rate car loan.
But now we have to look. Because interest rates are higher. Should we use that cash? That's just sitting there. Yeah, absolutely. And, and pick the right assets, pick things that are gonna go up. Stocks, bonds, real estate stay out of the commodity, stay out of gold sales. Silver. What about Bitcoin? Stay outta that.
Those are, you know, those are junk speculative investments. By the things you were jealous that people owned, in 20 19, 20, 20, 20, 21. Changing your tune a little bit on that crypto, huh? yeah, no, definitely. I've been kicked in the face as well. Yeah. he was, what was it a year ago? Two years ago.
Pounding the table. Yep. NFTs in crypto. all right. Let's get into RPA recommends. Josh, what do you have for us? I didn't know how bad normal sunscreen is for us. Did you guys know that? The popular, like Copperton brands. And like, they have like a lot of the chemicals in all chemicals in 'em. I'm not here to like, tell everybody, like to go out and throw all oil, all your copper tones.
But I do know that there's an alternative, right. Mineral sunscreen. And because I piggyback this from our. Warm up question, which is it's so hot. So going outside, you wanna make sure you have the proper sunblock, but my recommendation today is just look into some mineral sunscreen and for kids who wanted to look up some safe stuff for our little baby out there, as he gets out into the sun now, Tubby, Todd, I don't know if you guys have heard of this brand.
Um, but they have mineral sunscreen and it's safe for kids. They have like sticks and, and cream that you could put on them. And, uh, yeah, they also have a bunch of other, um, like safely tested, safe ingredient ointments and stuff like that for kids. But, um, you haven't, you have kids check it out, cuz it is a safe alternative for sunscreen.
Does it work though? Yeah, yeah, yeah. Yeah, it does work. It has great reviews too. We just started using it. So, I mean, O obviously over the next few weeks, I'll continue to tell you if it does. But so far so good, this podcast is going long and you know, you guys could cut me out or just turn it off here.
But, so I was doing research on sunscreen too, and it turns out in the us for some reason, the FDA, like won't clear the proper sunscreen that they use in the rest of the world. So basically they're feeding us with chemical. Like you're saying, and the only kind of sunscreen that's even like on par is like a pure mineral basis.
Uh, the problem is it doesn't rub in. Good. Yeah, it doesn't, but it's at least a little more safe. Yeah, absolutely. I remember years ago I used that honest, um, sunscreen on, on the kids. and they just got absolutely fried on it. and then I've been, I've been afraid to use some of the more natural sunscreens.
Yeah. But I know it's so important. And so I think this is a good reminder. Is it the mineral as well? I don't remember, but I know they got in big trouble for it and I think they, they must have probably changed that product line. Kids get burned. Yeah. I pulled this up on my phone. Um, we have a food, their products, not the sunscreen.
Yeah, the Tubby. Yeah. They're good too. The other kid products. So anyone with kids out there Tubby, Todd, look. Let's talk about my TV. All right. So bought a new TV last week. Um, it was long overdue about a 77 inch. LG, I know both of you guys made me do it and you bated me in I highly recommend it. And that's all I gotta say.
A little bit of the backstory on that. Uh, Matthew was doing research on this TV for quite a while and kept bringing up the same questions to us. And so one day, um, last week, Josh and I were pretty tired of listening to the questions that we've already had already answered so many times. So we just hounded him about how important it was for him.
The TV before football started. And so we decided Josh and I decided to bait him into just hounding him for about a day and a half. And by the end of that second day, he was at the store getting his TV he sent us a picture of it set up in his living room. it was more like he, we knew you were gonna buy the TV at some point.
There's important though. Financial playing lesson in this is, you know, sometimes letting a big expense linger and not pulling the trigger is worse for you than pulling the trigger. And yeah, it's nice to not have that thought in my head. It's awesome to go home and, you know, turn around Thursday night football and have a great looking picture, but then, you know, your team gets killed and you throw the remote the TV.
So now you gotta hope the TV has a good warranty. Which team is that? Uh, the Rams. Oh. Oh, okay. Don't be throwing any remotes. uh, my recommend is a Netflix series that I've watched the couple of times the last couple weeks. I, I don't get a chance to watch much on Netflix, but I do enjoy it the times I do get to watch some of the stuff.
I'm a big documentary, that's the kind of stuff I kind of enjoy. And I watch the series are part of all the series of untold, which is the man Tao story I watched. Donah he's story. The referee in basketball, who was betting on games or assisting and betting in games. And then I watched the malice at the palace, which was, uh, Ron Artest.
And some of those other guys that went up into the stands, great documentary. I thought they told the stories very well. I thought they were actually outstanding. If you have Netflix and you haven't had a chance to go watch if you like documentaries, like me outstanding, just outstanding viewership. And it saying to hear the inside stories about how all of that stuff took.
Yeah, they do a good job. I watched the man TA one. It was good. It, it gave me, um, even more info than I remember knowing then. Right. Like I, I didn't know the whole story when that story broke. So listening to it now, and, and it. Changed my point of view about the whole situation, which is good. Yeah. It did a really good job at that.
Cause I think at the time a lot of people thought it was his fault and he was part of the law. Yeah. And totally. And that all came in. It's good show came out. Yeah. I haven't watched that one. I saw the mouse at the palace from the big fight at the, you know, Pacers pistons. When they went up in the stands, ort fighting fans, um, had a world piece, he was running our test then, right?
Yes. Yeah. But then he changed it. Yo I, so I actually saw, we got in the show, but I, I met Ron our test or met a world piece. Um, I was at a movie premier with my wife and he was there and I was like I said, oh, what's up world, peace things, champ. And he, uh, gave me a peace sign. Oh, that's cool. Yeah, that's interesting.
All right. Let's close out the show. Uh, Matt's telling us to, to cut it. , uh, as advisors we'd love helping people. That's why we do it. If you'd like to schedule an appointment with any of us please go to RPA wealth.com and schedule a complimentary consultation. You can also download our ebook from our.
If you'd like the show notes, please go to retirement. Plan, playbook.com as always. Appreciate you listening.
Thank you for listening to the Retirement Plan Playbook, click the following button to be notified when new episodes become available to get in touch with our team, call us at nine zero nine two nine six seven nine seven. Or visit our website@www.rpawealth.com to schedule a complimentary consultation.
The information covered and posted, represents the views and opinions of the guest and does not necessarily represent the views or opinions of RPA Wealth Management. The content has been made available for informational and educational purposes. Only the content is not intended to be a substitute for professional investing advice always seek the advice of your financial advisor or other qualified financial service provider.
With any questions you may have regarding your investment planning.