Ep 76: Don’t Hit The Panic Button Just Because The Market Is Crashing!
The X's & O's
Things are changing very quickly in the stock market.
So what can you do to enhance your portfolio’s performance in such an unpredictable time?
In this episode, Matthew Theal, Brent Pasqua and Joshua Winterswyk discuss the recent news about housing market interest rates, the consumer price index, and the longer than average downturned stock market.
Matthew, Brent, and Joshua discuss:
Updates about the consumer price index and what it means for you
The shifting interest rates in the housing market and the reality for want-to-be homeowners
The motivations and overall purpose of the Federal Reserve and how it affects your bank account
What you can do right now that can enhance your financial performance in the coming years
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 to the Retirement Plan Playbook. I'm here. Matthew Theal and Joshua Winterswyk. I'm Brent Pasqua and we have a very timely podcast today. Don't hit that panic button because the market is crashing. Things are are changing very quickly and we're gonna talk a little bit about that, what our thoughts are and what you can do during this time.
But fall is upon us and the pumpkin spice lattes are back. , even though the market is down, can you afford to go buy one? Have you tried one? No. Um, I'm not a pumpkin spice latte person, neither. I haven't tried one yet. I mean, I won't shy away from one. If someone like got me one, I drink it, but I don't get as excited.
For the fall drinks, is that still very popular? Like people are rushing over there to get pumpkin spice lattes? I think so, yeah. It's like a big. Yeah. I, They have a lot of sugar, right? Yeah. Your guy, FLA City. Yeah. Did a video on the three new pumpkin drinks at Starbucks and they were all bad. Yeah, I'm not, I'm not going there for that.
Lots of sugar. I think the cold brew one though wasn't as bad, so I think that's the one where you could watch FLA City's video on it, but it's not as bad. Yeah, we're not trying to shame people who like those, but , I'm just not gonna rush out to get one just because of that. Like I said, I mean, I, I'd get one, I just probably not my first.
Let's move on. All right, let's get into the head headlines. Uh, the consumer price index increased 0.1% for the month and 8.3% over the past year. If you exclude food and energy costs, CPI Rose 0.6% from July and 6.3% from the same month in 2021. What does this mean? Yeah, so, you know, in today's show, you alluded at the start that we're gonna kind of talk about.
Kind of what's happening in global financial markets right now. And this inflation report is kind of what has set up this latest downward move and upward move for some assets. Uh, but it wasn't a good report. What ended up happening was rent increased a lot more than expected, and so did food costs, and that drove, um, inflation higher after being flat last month.
Another really concerning thing. I've been talking about this for a while and it hadn't gone up since March, but Core, which you allude to as well, um, went up as well. So this was just not a very good inflation report. And it's kind of what set off markets starting to go down again. Yeah. Not good.
And it is concerning. Right. We want to bring down inflation. The Federal Reserve's. Whole goal right now is to try to reduce inflation. So this data, again, is just not good news and markets didn't react favorably. Did they expect where this is where it would be, or were they expecting a little bit better numbers?
They're expecting better numbers. They were hoping it would get below eight. There was quite a few forecasts at like 7.9. 8% would a better report here had enough impact to make the markets this last week and a half better. I don't think it would've changed that much because really the Fed came out very hawkish.
But this certainly didn't help. It could have been better, but I, I also think that, you know, we were on this podcast, I think it was last podcast at the time before. That it is going to take time. This inflation number isn't gonna fall off a cliff. Um, so although the report wasn't good, I don't think it's ultimately extremely surprising that it's not extremely better.
Let's get into another headline and I think really is important to some of the things that have been coming out. And that's, uh, mortgage buyer Freddie Mac reported Thursday that the 30 year in uh, rate increased to 6.29%. That is up from 6.02% last week. That's the highest it's been since October of 2008.
And during that market crash, uh, that triggered the Great recession what's happening here with mortgage rates? Well, the Federal Reserve is increasing mortgage rates or increasing rates, and it's effectively changing the mortgage rates. Ultimately doubled, um, over the year and the monthly mortgage payment now on the medium home for a sale of a home in the US has increased 45%.
Last year it was about $1,600. It's now increased with the mortgage rate increased to $2,400. So almost, you know, let's call eight $800 difference in an average mortgage payment for a home purchase in the us. So what are people going to do now? With rates being so high, if you're looking to buy a home, what kind of position are you in?
You're not buying a home. To, to be honest with you right now where rates are, with where prices are, prices probably need to come down in certain markets, you know, 20 to 25% from here for people to be able to afford a home at 6.29. I mean, you could do a, a 10 year arm that's probably, you know, maybe an attractive product five year arm.
I think those are at four and a half. Um, but even a 15 years over five now. Yeah. So it, housing market's done, it's frozen. I, if I, you know, was a, a client or someone, a lot of people are concerned about the stock market. You're concerned about the wrong thing. Um, in my opinion, stock market's gonna be.
The housing market though, um, this, this looks bad. So when will rates, like just based on projections in a historical day, like when do rates come actually back down? Like how long are we floating around these higher rates for? I think that brings them to the question about the Federal Reserve. Right? And you know why things started moving the way they did the last week and a half.
And they, they were a little bit more hawkish, which meant they're gonna keep rates. Higher for longer. Is it their plan or their current plan? Um, and that's not good for housing. That's not good for the mortgage market. I mean, literally the, the chairman said he wants the housing market to go down and this is why it's a little predictable.
Intra rates are going higher. We know borrowing costs are more expensive. That's gonna affect the housing market at some point. Absolutely. Yeah. And what I think is interesting too, is. People 10 30 wanting exchanging houses right now is they're the one that that's gonna really benefit from this because they're doing a lot of cash to cash deals.
They're avoiding having to do the loans and as prices come down, they're the one that's gonna be doing most of the exchanging right now. Yeah. And you're actually seeing one of the, the big indicators, I think, Matt, correct me on the, on the actual percentage, but luxury houses, In the us so you're talking about three, $4 million and plus houses are already have dropped in value over 25, 30%.
They're already seeing that number just fall off a cliff. Yeah, they are. And then there's also some oh, those major Matt Stross Austin. Boise, Idaho that are kind of having double digit price declines. Uh, one interesting thing I heard about Austin is it sounds like there's a weird lag with how the sale home sales get actually reported there with the price and that prices might be dropping faster in Austin than than reported.
So if we said that mortgages have increased from 1600 to 2,400 for basically a like to like mortgage on the same house, , when does prices come back down so that the payment becomes affordable like it was before? Well, supply and demand will ultimately decide that, right? So demand's gonna come down because mortgages are more expensive because of the rate.
If demand comes down, we'd hope supply. Increases or there's just little bit more supply and the price will effectively come down eventually. So in the short term, yes, we have a little bit of a disparity. Like, there's still some good demand rates are slowly going or quickly go going up. And so eventually that price will adjust.
Like we saw on, I had just mentioned in luxury market, eventually the, you know, the average home in America price will eventually come down relative to the. That makes sense. All right, let's get into the retirement planning corner. Uh, let's take a pulse on financial markets. Because right now over the last, I don't know, three to four weeks, the stock market has just really massively declined and really is getting back to a point where we're close to the lows of June, and if not now, exceeding.
And I think most people's first instinct in a time like this is to really panic. I mean, again, nobody likes to have less than what they had before. This is causing people to have less. And we wanna make sure that we give our thoughts on first of all where we are and, and where we think potentially things are heading and, and what people can do.
But if we take a pulse on the financial markets, what's actually going on? Right? Yeah, I think it's important to just start with where stock markets returns are year to date. And the three major indexes in the US are all down. We know that, and over 90% of asset categories in the U or globally are, are down.
Um, and you're seeing the Dow Jones now year to date down over 17%. The s and p 500 is down over 21. And the NASDAQ is down over 29% year to date. So some pretty, you know, bad rates of return when we're looking at 'em from a year to date perspective. Even the US bond markets down over 20, or excuse me, 12%, um, year to date.
So for just looking at overall markets, it's, it's ugly out there. All asset categories are down. It's grim. It's not pretty. You know, one thing I'll say though, there are some things going up, um, and this is probably the most concerning thing we'll say on the podcast, besides housing. And we'll probably find out why in weeks and months ahead, but the dollar's been surging which is contrary to what everybody thought.
But right now, the US with the interest rates we're offering on government bonds is the best place to be and people want dollars overall, other currencies. And so far, this year, the dollar is up 20% against the Euro. 24% against the pound and 30% against the Japanese Yen. Those are the three major currencies in the world.
And the dollars higher by 20%. This might not be a, a good sign here going in for the next two to three months. Writing's on the wall. Investors are looking for safety and the US dollar, US interest rates are the best place to be right now. I guess there's always a silver lining. In some kind of recession, right?
Because before we couldn't even get a quarter percent on savings accounts, and now we're starting to flip that and we're starting to see much better returns. Oh, absolutely. I mean, we'll get into it more in the show, but right now if you're in your sixties, seventies, oh, what a great time to be alive.
You made a bunch of money in the stock market over the last 10 to 15 years. Now at the time when you're ready to retire, you're ready to start, turning in some of those stocks for bonds. Interest rates are at their highest point since 2008. You could lock in those rates, get a guaranteed 4% rate to return.
Boom. Sign me up. Yields are back. Yep. Talking about yields, the Federal Reserve raised interest rates by 0.75% this week. Why does that though seem so much more significant than the last time they did? Like we said at the start of the show, I mean, Chairman Powell, um, Jerome Powell, the chair of the Federal Reserve, came out and was, um, extremely hawkish.
Which essentially means he's gonna keep financial con conditions tight for a longer period of time than people were expecting. I pulled a few quotes from what he said, cause I think it's really, really important for people to understand what's happening right now. He said, We are going to bring some pain to households and businesses.
So essentially what he is saying is what we're seeing in the economy where people's houses are going down, their stock portfolios going down, their businesses are struggling. That's what he wants to see and why? Because it inflation's out of control. And their number one goal at the Federal Reserve is price stability.
And they're willing to cause financial assets to go down to get there with any cost, right? I mean, this is why another 75 point hike is here so quickly. I mean, there was no delay. 75 points last time, 75 basis points this time, and he's forcing the issue. He said we have to get supply and demand back into alignment.
He said the only way to do this is to slow the economy. He also said that he does not want to make the mistake that the Federal Reserve made in the 1970s when we had worrying inflation where they cut rates too fast or stopped raising them. So essentially he wants to raise them and keep them higher for longer than everyone expected.
So when do they plan on potentially raising them again? I believe at the next meeting, I, I, I think, is it November, October? Yep. Yeah. So I also, in his speech, I think there was a lot of pessimistic information that came out of that, which was discussed about, that we're gonna be filling this into next year and possibly into 2024.
And there was a lot of chatter about 2025. What does that look like and why? Why were they talking about 2025? That's just essentially where the Federal Reserve pushed their projections out to. That's why 2025 became, uh, an important year. Let me tell you right now, 25. 25 does not matter at all. The Federal Reserve will be wrong.
They're always wrong in their forecast. They swung and missed on inflation in 2021, and now they're playing catch up in 2020. They were wrong about the housing market in 2007 and played catch up in 2008. They will be wrong again about this economy. 2025 is insignificant from his speech too, is like, we don't wanna make the same mistake.
Well, the mistake was already made. Right. ? I mean, if we were just looking back to last year, I think that there was already a big mistake made. And this aggressive approach that we're taking, you know, we see already the effects and they're not slowing down. That could also be another mistake.
Yeah. Has it come so far that. Pretty difficult for them to correct. I mean, I think the market's answering that, but can they get this thing back in control? They can. I mean, I, I think what the market wants to see is just say, Hey, we're gonna stop and we're gonna let you know another two to three months go and we'll see where we are at the beginning of 23.
I mean, so that's what happened in June, right? That's the whole reason why the market probably rallied from June until right now. Because there's no rate hikes, right? We got the one rate hike market kind of crashed a little bit, then it recovered. We got a nice bear market rally. But now that you're gonna keep hiking into this and the stock market's kinda like, Hey, it looks like parts of the economy are slowing.
Um, this isn't good. So with the stock market down and interest rates rising, the economy doesn't really feel like we're in a recession. It's definitely a unique. Inflation is super high. The sediment is just poor. We have, just so many negative headlines, but. Some of this economic data isn't poor, like unemployment is still very low, even though jobless ca claims went up a little bit.
Wage growth is good. There's still, a lot of demand out there. We talked about just buying concert tickets and all of the demand that's out there, and even with groceries. But you're starting to see a little bit of a change, and I think one of the economic indicators that I like to just point out is US savings rates here to date have dropped over 35.
not a good statistic, right? So if the economy is slowly, kind of contracting or slowing down, that's a good place to look. People are not saving as much money, right? Their balance sheets are shrinking. I think that's an also kind of a, a good indicator to look at. Is this working? I think they're at record highs though, weren't they?
They were. Balance sheets were great. I mean, consumer debt was at its lowest it's ever been. savings rates were at the highest they've ever been. People are in good position before this, and now you can see that wealth slowly deteriorating. Now, I think the writing's on the wall a little bit here. Yeah. You know, Brent, I think the perfect scenario for the Federal Reserve isn't to cause a 2008 recession depression.
Like people remember cause that that's what people are anchoring to. Right. They're remembering how poor it was in 2000. How empty restaurants were, how many people didn't have jobs, how tough it was to get a job if you were looking for a job. That's not the goal of the Federal Reserve. The goal of the Federal Reserve right now is to make that your house price fall, make your rental property seem unattractive, make your stock portfolio decline.
They wanna make it make you have less money on. , they don't want you to lose your job. Nobody wants you to lose your job. I guess the trouble I'm having with all of this, and, and what I'm trying to understand better, is that although the markets are going down significantly and rapidly most people aren't sensing that in the economy cuz people are still spending a ton of money.
I would like to go to a concert this weekend. And the prices for concert tickets are astronomical, never been higher. I don't understand how we're correlating what's actually happening to what people are actually doing. That's cuz everybody still has a job. Wages are high. You know, at, at the end of the day, like who, what this is really gonna hurt is the housing related market.
That's why I keep saying, you know, the concern is with housing. Right. So who does this hurt? This hurts the contractor who is getting remodeled jobs based on people pulling home equity out of their. . That's, That's who this hurts. Yeah. But that market was so good. I mean, in 2020 and 2021, I mean, we saw growth rates never seen before.
We saw just that whole market of contractors and remodeling. Boom. I mean, that industry was just, I mean, you couldn't find a contractor No. Over the last two years. No, you couldn't. So as far as just profitability from that industry as far as housing prices still. You know, really good couple of years if you were a homeowner.
So a little bit of a reset maybe is not as surprising through this period. It, it shouldn't be. Do either of you think we get to a point in this recession where people really scale back and slow their spending and really become more cautious on their, how they're spending money? Eventually they will. Cuz you can see credit card debts, increas.
So savings rates are coming down, credit card debt's increasing. It's just probably happening slower than the Federal Reserve wants to see it. If the market does and is down for, let's say the next year to two years, how does that really impact people's retirement? Uh, that's a good question. And you know, I'll always say something like, general, Hey, it depends on the person.
Or, but nobody wants to hear that. I think it's gonna impact retirees in a couple ways. The best thing to do right now is if you're a retirees, is to kind of like hunker down and probably cut some expenses or not take as much from your portfolio right now. Especially if you don't need it, there's no reason to.
Right. You're also getting a tremendous opportunity to buy fixed income. I mean, we've been talking 4% yields. We haven't seen that in, what, over 15 years? Yeah. I mean that's, that's really good. I think a lot of people do this also that they have, Let's say you're taking a draw from your portfolio every month, and let's just say it's $2,000 a month and they get comfortable having that $2,000 a month, but they don't necessarily need that $2,000 a month.
And so some of that's naturally just going into saving. What that does though to the portfolio is if it's a coming out of an IRA or retirement account, you're getting taxed on that. So you're raising your income level. But if it's not, let's just say it's coming out an after tax brokerage account, most likely, eventually that cash is running low.
You're having to sell shares to actually get money out of the brokerage account and into the bank. And I think what you said is so important that if you actually don't need that 2000 this month or every month, and you could take it down to 1500, right now is the time to. It's just a good time to be aware, right?
Look into this. Be proactive. These are the things that can prepare you for if times do get worse. That was the question, right? What if the market continues to go down for or stays down for the next year or two? So I just think that these strategies can really help you. I guess, you know, one of the biggest questions that I've had with all of this is, you know, how much more can the market go?
Well, we know the market can go down further. Um, even at the levels they're at right now, year to date, we aren't close to the average of the. Bear markets to the history of the US and I just went back and pulled some data too. I mean, even in, in 2022 we were down, um, at its lows, at negative 34%.
So right now we haven't even hit that low so far this year in 2008, the market hit negative 48%, so we haven't touched that low. Um, and if we're going all the way back to 1987, the market hit a. Negative 34%. So, I mean, I think there is, obviously historically if we're looking at the data, there's more room to go down.
But we ultimately don't know how far. Yeah, there's always more room to the downside. That said, if you're still sitting there today and you, you know, you still own stocks, it's almost done. You've almost made it. So you might as well just hold out. If the market falls another 10 or 15%, you've made it, it's already fallen over 20.
Right. Because if you sell out now, you're going to take even at where bond rates are, it's gonna take you 10 years to get back to what, where you were. Yeah. You might not ever get back to where you were. Yeah. A absolutely you don't want to get out. You've made it. there's no reason for you to get out.
You're not a day trader. You're not a hedge fund manager. Most of our clients, people listen to this, are retirees. Stay the course. Focus on the big picture. Don't focus on you know, what's going on on CNN or cnbc, getting out to know the strategy. That's a bad strategy. I think during times like this though, there's people that are just gonna ride the emotional wave and kind of go through it.
And then there's people who will make really bad decisions and, and hurt themself long term from those decisions. And then there's people that make very tactical or strategic decisions that can benefit. Making some moves. What would some of those action plans be right now to kind of help yourself through this?
Matt, can I just take the first one? Yeah, sure. Do nothing. don't do anything. That would be the first one. Go. Go ahead Matt. Yeah, and Josh is right. this is kind of a time where you probably really don't want to do anything. You know, especially if you, if you trust what you know, your advisor's created or you've created yourself.
Do nothing. Sit there, sit on your hands read a book, go for a walk, stop focusing on what you can't control. That said, uh, if I had a dollar for every time someone talked to me about the stock market and said, if I had a chance to buy XYZ stock back at 10 or 15, oh man, I would buy so much of it.
We're here. You're in the midst of the correction. Um, I look today, Google's under a hundred dollars a. , uh, I'm not saying Google's a goodbye, but this is the time when you start accumulating assets. If you wanted a rental property, we'll probably be there in six months, 12 months. Rental properties are probably 20 to 25% overvalued here.
You could buy that rental. Uh, so it is a time for people who have cash, have capital, who have been weighing to get money in to invest in something to be aggress. And it's good for all investors. I mean, you just look at the older millennial generation or the generation older than that, you know, a really good time if you've locked in a mortgage at 3% and you're maxing out your 401k right now.
I mean, although the news is negative, like your financial situation, if you haven't lost your job, probably got a raise within the last couple years locked into 3% mortgage or buying shares at a lower price like you just said. Those are all good things. My favorite day for my account personally is when 401k contributions go in and the market's down.
I'm like, Woo, I'm buying, I'm buying my shares at a discount. You can pop a beer that night, . But I, I have another favorite strategy that people could do, and this is for people, um, who wanna be a little bit more proactive. And we haven't had this opportunity in a really long time really for most of my career.
But we could start doing cash management, strateg. And you could do this yourself, You could hire an advisor, doesn't matter. But right now where the bills are, they're about three and a half, 4%. Anywhere from three months to two years out. Amazing buying opportunity right here. Uh, my favorite is the shorter ones.
Three and six months. I've been using those with a lot of clients. And then if, if you live in the state of California, Right now, um, this is the best I've seen, but you can get a tax equivalent yield on California municipal bonds at over 6%. I was watching, uh, the fixed income screen that Charles Schwab gives us the trade fixed income, and I saw a bond come across the screen.
The end of day, I think is a 10 year bond at 7%. Tax equivalent yield. Like that's incredible. Take advantage of opportunities like this. Especially if you're a retiree and you wanna lock in some fixed income, this is better than an annuity. You're not gonna get the rates or return you will in stock, but at least you're gonna get some fixed income here.
Excellent tips and yeah, just crazy how we haven't had. Really much to do with cash management strategies. We were always looking for like a needle in the haystack or the magic pill with cash management. But now that time's here where there are strategies to implement. And I just think that's a, a, a great tip for everyone listening.
Like three months ago this was even an option, right? It's an option now. Yeah, because three months ago we were saying, yeah, cash is the best performing position right now at 0%. Cuz it wasn't negative, but now you could say. Now you're wildly positive, right? Absolutely. So you could really change that.
But you know, I, I agree. I, I don't think that everything is always doom and gloom. I think it's always made worse by things that, um, you hear. And there's always ways to benefit from certain situations. We've listed some based on whether it's rebalancing or using dividend stocks, dollar cost averaging using T bills right now, making sure you're maximizing your interest on your.
There's things like that that you can't do that long term will really help you get through this. Mm-hmm. . Yeah. That'll be the difference, right? You're gonna be more successful in your future and in retirement and, and like you said, Brent, I mean, it seems always. Worse while we're in it, it seems longer while these, like more painful times are, are happening, but we'll get through it.
This has been a long time, um, and that's why people are frustrated. That's why they're nervous. In 2020, you know, that was fast. That was painless. Um, it was over in six weeks. We're, 10 months into this, 11 months into. But at the end, at the, We're, we're coming up on the end, though. They do not typically last this long.
We're gonna get outta this, It's gonna be okay. At the end of the day, we're, we've basically just reset to previous highs of 2020 and we've lost 20, 20 one's returns. But you know, like you said, this is almost possibly over at some point. It's part of being an investor. You'll make it back. All right, let's get into the RPA recommends part of the show.
Josh, what do you have? , I'm gonna recommend a show today. It's actually on Hulu. It's called Welcome to Reem. It's actually about a soccer team in Wales that two Hollywood actors purchased. So what's pretty cool in like England and Wales is the, the actual soccer system, our football system, if we're talking about there, you can get relegated and promoted.
Throughout their leagues. So it'd be like then NFL or baseball, like the Dodgers finished last in their league and they got sent down to Triple A or the nfl you finished last and you got sent down to a bottom league and then the top team from the bottom league goes up. So why I explain that is that they bought a team that is in like the sixth division of of English soccer.
Um, and their whole goal is to promote, Up the ranks and grow the club. And the club was almost like gonna file for bankruptcy through Covid and Ryan Reynolds and the lead star from, it's always sunny in Philadelphia. Rob, I don't, don't know, I don't know how to pronounce his last name, but they purchased the club.
So it's a story about them purchasing it. They're also interviewing like the local fans and the people who are like volunteering to keep the club alive, like through Covid and stuff. Just very interesting. A good show, especially if you like soccer. But check it out. It's on Hulu. Very good. Yeah. Uh, The Angels, they should get relegated
They, they definitely should. Have you, have you started welcome to Reim yet? No, but the Angels are basically a triple A team. Yeah. They, they need to get relegated to some. , some other division, some other league. I don't even know if they're good enough to play. Like, uh, Triple A. They might have to push em to double A or single A.
Is baseball still on? No. The season, Not for the, not for Angel fans. , No, but there is hope if that team goes up for sale and that goes through, I mean, theres could be better days in the future. Baseball ended in June. Uh, my RPA recommend would be to, as right now, you know, the market is down. You know, people spending might eventually start going down, but before you have to start reducing your spending, cancel subscriptions that you aren't using.
I think people have gotten caught up into the modern day way of, of expenses where so many things are just reoccurring expenses on a monthly basis, and we get caught up into memberships or we get caught up into just these renewal subscriptions that they hit, either, whether it's monthly or annually. Go through your bank statements or go through your subscription lists and know what you're spending or what you have coming out every month.
And if you're not using it, cancel it. If you're not going to the gym and you have a, gym expense coming out, or if you have all these different TV subscriptions between Prime and Netflix and Hulu and all the different ones, I mean Disney, there's how many out there now, If you're only using one or two of them, cancel the rest of 'em.
And if you have, I know so many apps now you have to pay for, If you have an app that you're paying for that you're not utilizing, cancel it. And when you are buying stuff online, like I always say, look for coupons online because you could always put in a code that usually always put in a code that's gonna save you a significant amount of money or wait for the sale cuz they're here and they're gonna be continuing to come.
Yeah. Good, good reminder, Brent. Yep. What do you have for us Matthew? Cash management. For every thousand you have right now, you should be making $250 a year in interest. If you have a hundred thousand, that's $2,500 in interest, you should be getting online savings accounts. Talk to your advisor.
But you should be getting higher than what Bank of America, JP Morgan City Group Wells, if you have a lot of money in those. Take it out. Rates are much higher and you could get a much higher savings rate elsewhere. Um, it's one of the better places to be right now. Yeah. Get the money away from the big banks.
They're charging you 6% on a mortgage now, still giving you less than 1% on the savings rates. Yeah. Don't let them make all the money off you and go earn the money yourself and let's not make them the, the ones that are getting rich. All right. As we close out the show, as advisors, we love helping people.
That's why we do it. If you'd like to schedule an appointment with any of us, please go to rpawealth.com and schedule a complimentary consultation. You could also download our ebook from our website. If you'd like the show notes, please go to retirementplanplaybook.com. Without us always. Thanks for listening.
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