The Great and Powerful AI

SPEAKER_01 0:05

You're gonna do a really great financial future. Tom and Don are talking real money.

The financial advice industry is threatened by AI

SPEAKER_03 0:12

I think this bears reiteration. I am kind of glad I'm old. Now I'm kinda glad I'm old. Because it appears that there'll be less need for us in the future, although there is some hope on the horizon. The financial advice industry is threatened by artificial intelligence. Lots of jobs are threatened by it. But how threatening is AI right now? That's what we're going to talk about on today's exciting edition of the Talking Real Money Podcast with yours truly, Don McDonald, and his truly Thomas Seacock. The uh well hydrated. Are you hydrated now? You ready to go? Yeah, I'm hydrated. I'm ready to go. As long as you're ready to go. Get it. Rip raring to go. Oh, the now it made me feel like I had to hydrate. You need more than I do down there. That's right. I have a fancier bottle than you, though. I have an awalla.

SPEAKER_04 1:06

My this bottle is for my grandson's. Couldn't be any fancier. No, it's not. The grandfather. Says it right there. That's pretty cool.

Exploring AI's Role in Financial Advice

SPEAKER_03 1:13

Yes. It's not as fancy as an awalla. I get nothing for the I should. You know, I really should. I should like when I mention something on the show. I should send people to the website and get some sort of an affiliate fee for them. Trevor Burrus, Jr.

SPEAKER_04 1:24

Prospect Product Placement. Yeah. Yeah.

SPEAKER_03 1:27

I mean, they do it on the Today Show now. Of course. And Good Morning America and all those shows. They're not.

SPEAKER_04 1:32

Favorite movies, and et cetera, et cetera.

unknown 1:34

Sure.

SPEAKER_03 1:34

Anyway, let's talk a little bit about our favorite friend AI. And my favorite friend, actually, I'm not sure who my favorite AI is now. I've been up Chat GPT and I've got to be a good one. ChatGPT and I go way back. But lately I have been loving Claude. I know I have a I have a relationship with ChatGPT or Kath GPT and Claude. I'm not sure who I like better. But ChatGPT was put to the test. There's an article in the Wall Street Journal, and uh the author of this article, Jun Junjon Banarjee, why I'm sure I massacred that, Junjan, I'm sorry. Uh he he occasionally asked ChatGPT to act as a financial advisor uh to help, I guess, figure out what kind of portfolio you should use. I mean, am I saying that right?

SPEAKER_04 2:38

Yeah, I think you're saying exactly right. Uh the whole uh the the the whole prospect, the whole demonstration was plug it in, see what happens, right? See what see what uh chat spits out for a portfolio. Pretty interesting. Um by the way, I'm sure not the first person to do this. Probably not the first person in the financial services industry to do this either. But um let's run through this a little bit. It's it's pretty fascinating. And then we've got some comments from an MIT professor that speaks often on these matters that I think are relevant as well. So, okay, so the plug-in was a long-term investor. Remember, long-term investor, 35 to 40 years old, right? Uh-huh. It did not plug in a risk tolerance. It just assumed you're 35 to 40, so you're a little bit more than a little bit more.

SPEAKER_03 3:27

Well, no, no, he did no. He said um risk tolerance uh the uh uh three on a one to five scale. Okay. So he did put that in. He did put that. Here's what he put in. He said, he said, you are a financial fiduciary financial advisor tasked with managing my long-term investment portfolio for the next month. Oh, that's a short horizon. My profile, age 30 to 35, primary goal, growth, long horizon, long-term, risk tolerance three between one and five. Investment a million dollars, type of account taxable.

SPEAKER_04 4:00

Yeah. That's an important part, by the way. So, okay. So the computer, the chat says, How about 80% in stocks, 20% in bonds? Now, right there, I could have a slight argument because if you're 35, I don't know that 20% of your money should be in fixed income. But if your risk tolerance really is only a three out of five, then maybe so. Maybe that's okay. Because you can't handle the really deep declines, I guess. Yeah, I think that's what they're saying.

SPEAKER_03 4:28

It's the risk because of that three risk. I I really do believe that's why.

SPEAKER_04 4:33

I will say this at 35, you're gonna cost yourself some money over the long haul by being 20% in bonds. That's my take. But okay. So with that in mind, following portfolio was designed 50% in U.S. stocks, 20% in international stocks, 20% in bonds, 10% in alternatives, which in this case was REITs, I believe, and then 5% in cash. Let me go the other direction. 5% in cash, 10% alts, 20% bonds, 20% international stocks, 50% U.S. Now, I'm not a fan of a few things here. I'm really not a fan of 5% in cash. Because if you're 35, is this money going to use for buying a house or something?

SPEAKER_03 5:18

I think it's liquidity, I think it's emergency funds.

SPEAKER_04 5:20

Okay. I really think it's away with it then. That's fifty thousand dollars it's not working for you.

SPEAKER_03 5:25

It says for liquidity.

SPEAKER_04 5:26

That's a lot of money that's not really pulling much.

SPEAKER_03 5:28

Well, but you could have it pulling four percent.

SPEAKER_04 5:31

Maybe. Well, for a time.

SPEAKER_03 5:32

Yes.

SPEAKER_04 5:33

Right now.

SPEAKER_03 5:34

No, right now, yeah.

SPEAKER_04 5:35

Right now. Tomorrow?

SPEAKER_03 5:36

I don't know.

SPEAKER_04 5:38

Um the alt, yeah, okay. I could go back and forth on having REITs or not. I don't I wouldn't generally suggest REITs in a taxable account because remember, they're paying out And this is a taxable account. In all all that money. So um then um, you know, the bonds, again, we've already had that discussion, right? Um 20% international, that's a little underweight to international in my mind, because that's you know, right now it's about 60 US 40 international, if you ran the numbers in terms of the market caps. So I'd want to see a little more in international. But here's the part that I very much struggle with. There's really no value stocks at all, right? There's basically no small cap, certainly not even to the apportion of the that that we would suggest. Um and the same thing internationally, right? It doesn't have those parts of the market that have over time been more productive.

SPEAKER_03 6:36

So, yeah, I I Well, plus they also said they wanted a dividend stock and they went for a large cap growth tilt, which is seems backward to me. It does seem backwards.

SPEAKER_04 6:51

No academic tilts here.

SPEAKER_03 6:53

Trevor Burrus, Jr. Yeah, here's the interesting thing. When I did the exact same prompt, I mean the exact same prompt. The the 30 to 35 growth long-term, I gave ChatGPT those exact parameters, and I got a different portfolio.

SPEAKER_04 7:10

Because they like you more or what No, I don't know.

SPEAKER_03 7:13

I gave them the the three risk score, all of that, and I got a 70-30 portfolio.

SPEAKER_04 7:20

And and for somebody who's 65?

SPEAKER_03 7:22

No, I got this, I put in the exact same prompts, 30 to 35.

SPEAKER_04 7:25

Oh, okay. 30 to 35, 35 to 40.

SPEAKER_03 7:28

Long-term risk tolerance three, investments a million, taxable account. I got 70-30, and then I also got twenty-five percent international.

SPEAKER_04 7:40

So more international.

SPEAKER_03 7:41

More international. Same amount of it. Same amount of cash, no value tilt, but and a large cap value tilt. Oh, wait, I'm sorry, I take that back. Instead of a large cap growth tilt, it gave me a large capital value tilt. Okay. Which says something really interesting. That the advice is not consistent. It's the same servers.

Insights from Professor Lowe on AI

SPEAKER_04 8:07

And there one of the things they're saying is it tends to be as recency bias. Things that have worked well lately, the computer says we need more of that. Um so no academic tilts. The other thing that's a bit of a struggle for most people is it's 10 funds. There's very few people that can manage 10. Not there are those, we've talked to them, but very few can manage 10 funds, rebalance between them, figure out how to generate income, et cetera, wouldn't be the case in this case, in this situation, but that's something to consider. So um now back to Professor Lowe. He calls this um not ready for prime time. Interesting, interesting call, right? That that AI, while certainly able to do many things well, is not quite there yet. Um calls it a helpful tool for exploring options, preparing questions, and making topics easier to understand. But in this case, not quite, as he put it, ready for the big time, for the prime time, for the big show.

SPEAKER_03 9:08

I just figured out what was going on, why I got the value tilt. I s I just asked, did you factor in what you know about me into that prompt? Yeah. And the response I got was partially yeah. I said, okay, take out the me factor from the portfolio. Take out everything you know about me, and it changed to uh still 75 uh to 7525 and because it knows my age, 7525, and it uh got rid of the value tilt.

SPEAKER_04 9:50

And this worries me even more that it has a bias towards the user.

SPEAKER_03 9:54

Well, I think it's good that it knows you. Like a like a good advisor should know the customer.

SPEAKER_04 9:59

But if that were true, then it'd be giving me chocolate cake every night for dinner. Because it knows I like chocolate cake. Right. It knows I like chocolate chocolate. Yeah. Don really likes this, so I better pop some of that in there.

SPEAKER_03 10:14

Yeah. I I I found it a a weird, uh weird setup. One, it suggested municipal bonds for this writer uh because he said it was an after-tax account, but what if he's in a low bracket?

SPEAKER_04 10:30

Yeah. You remember you got to be somewhere probably over thirty in terms of your tax bracket.

SPEAKER_03 10:37

Yeah, certainly up close to thirty as your marginal rate. Yeah.

SPEAKER_04 10:40

But uh, this all the time. So, yeah, this is interesting. Um I'd want to check it again in a few months, see how much has changed. Obviously, a lot of things. I guarantee one might imagine.

SPEAKER_03 10:52

Given that it really did propose a pretty sensible portfolio in terms of the funds, the f the the uh the the the expense ratios of the funds and the fact that it's not recommending uh much in the way of active management. It's going index or or uh rules-based. Not really going rules-based, it's going more index. But that that's encouraging to see the direction it's going. And it's certainly not the direction that most commission salespeople would like to see it go.

SPEAKER_04 11:25

No, they're not going to make a lot of money. So, I mean, back to the beginning though. If I was telling you to go build a portfolio, yeah, risk tolerance important, simplicity important, academic tilts important, and I would always even if I was checking with chat, I would always get a review by a 100% fiduciary. Period.

SPEAKER_03 11:49

And the other thing is is chat could have made this a whole lot easier by saying A V G E and B N D and Cash. Waiting for that day. Yeah. That would have been so I mean that's that's us. That's our artificial intelligence. Or whatever we want to call it. It's not real. It's an artificial it's artificial, right?

SPEAKER_04 12:08

Oh, everything, yeah.

Creating Your Own Financial Plan

SPEAKER_03 12:09

Yeah, it's all artificial. We're just other than my hair. We're just we're just organic computers. Uh we do love taking your questions. We love answering questions. It's our favorite thing. And the QA episodes are very popular, so we're going to keep doing a lot of questions and answers, but you got to send in your questions for us to answer them. And you send those in by going to talkingrealmoney.com and clicking on the ask a question button or the contact form, and then either typing them in or speaking them in. If you type them in, then we answer them two different ways. One, Tom will read the question, as you'll see later in the episode, or Tom will do this.

SPEAKER_04 12:45

And we go to Vancouver, Washington, not Vancouver, BC, uh, and Michael joins us on uh Talking Real Money. Hi, Michael.

SPEAKER_02 12:55

Hey, Tom. So I uh I love what you guys teach. Um I've learned a lot from you guys. And you guys talk a lot about creating a plan, but you don't talk I haven't heard you like go broadly over what is all involved in creating a plan, and I'd love to learn how to make my own plan. So I was hoping you could like address the major categories and what that entails in case there's something I don't I'm not thinking about. I know there's computer program stuff that I don't have, but uh the more simpler things.

Major Categories of Retirement Planning

SPEAKER_04 13:30

Yeah, there that's a really good question. So of course, first question would be back to you would be kind of what stage you're at at your life. Because if you come to me in your 30 and you say I want to plan, I'm gonna say, let's figure out what your income is, let's figure out how much of that you should be saving, setting aside, and then building the portfolio to support that. It's really not that much more complicated when you're young. You get older, 50 plus, that's where the complications come in, right? Because then it's gonna be, well, I want to retire in fill in the blank. Is it 10 years, is it 15 years, or is it gonna be like Don McDonald 30 years, whatever it is? Um, you know, that that then you start getting into the real heart of the matter because planning to us most of the time means retirement planning. And most of that really falls around income planning, right? Because the bottom line is for most retirees, just had this conversation with my teenage daughter last night. Uh how am I going to replace the money that's coming in and maintain my lifestyle for the next 20 or 30 years? That's what planning really is. Now, as you said, what are the major categories? Well, and and and by the way, this is up now at retiremeat.com. So my talk about retirement income planning and then Jason Gentile's piece on planning are all up online. You can go watch them. They're relatively brief. I think they're 30 minutes each, and the details are a little more fuller there because in a podcast I can't be quite as many words. But income planning should revolve generally first around what are your fixed sources of income, right? Like Social Security pensions, any other things that are going to be coming in regularly. That's very important. And you need to make good decisions around those, both about claiming pensions and claiming Social Security. Then the other part is the money, hopefully, that you've saved or the money that you can access, because we just finished a podcast as well on uh looking at perhaps a reverse mortgage or HELOC to try to get some of the equity out of your house to support yourself if you need it to. So that becomes the secondary part of retirement planning because now you have the source, you have these assets that hopefully will pay you out over time, right? 20 or 30 years. How do you do that? How do you draw that? What sort of portfolio should you have? You've heard us talk about the 4% rule, the 5% variable, there's all these other rules. So those would be the two parts. And then when you get into real detailed planning, you should be looking at things like your estate. I mean, is it going to be you planning one leaving money to others? Is that important or not important? Do you want to leave it all to charity? What's the best way to do that from a tax standpoint, right? Et cetera. Then, of course, there's insurance. You know, we have a lot of debates about whether you should have life insurance and, you know, how much uh homeowners policy and umbrella, that's a part of planning as well. And then there's the aspect, obviously, in planning that was overlooked for a long time, and that was kind of lifestyle, right? I mean, if you're getting close to retirement, um the idea of what am I going to do with my time? What's going to keep me going? What gets gets me out of bed in the morning? I had a dear friend passed away a few months ago, Rich Buck, who used to tell me that uh what got him going was other people were still dependent on him. There was some some reason somebody else needed him that kept him going in retirement. There's people like my friend Paul Merriman, who will be, uh I hate to say the number, but I think he's going to be 83 here in October, and he loves his work. He gets up every morning still about the time I do, about 3:30 in the morning, and he's at it, and he goes after, et cetera, et cetera. So I truly think that should be an important part of planning as well. So, but back to your question, because I think a lot of stuff there. If I was writing a plan, the first thing I would be looking at probably would be what expenses am I going to have in retirement? How much income do I really need? That would be the starting place if this is a retirement plan. And then, as I said, the the initial thing would be the uh the fixed sources, social security, pensions, other, and then looking at the portfolio. And by the way, in terms of you said this correctly, there's all kinds of online planning tools you can get. Yeah, you got to pay something for them. Or if you're smart enough, and I've done some of these ways back in the day too, a good old Excel spreadsheet will work as well because they'll run the numbers and it'll give you a straight line, right? The market's gonna do this, this, and this. It won't give you the thousand tries that that other more sophisticated planning software would do. But as you said, it'd be a starting place. So is is that helpful in any way?

unknown 18:08

Yeah.

SPEAKER_02 18:08

So are those the main categories?

SPEAKER_04 18:10

I think those are the big ones, you know, kind of um um income, portfolio, insurance, estate, health obviously plays a role. How are you going to pay for health care? You know, where's that going to come from? Um, you know, there's uh various aspects of that, you know, like around Medicare, because Medicare is complicated. We actually have a guy that we work with fairly exclusively. It takes care of our clients because it shouldn't, it's nothing to be sort of messed around with when you get to 65. You really need to know what you're doing. But um, but as I say, for for me, truly a a plan most of the time revolves around retirement. Most of the time the focus is income, but those other factors would play a role as well. All right. Thank you for for joining us. Thank you for for asking your question. Really appreciate it.

SPEAKER_03 18:58

See, look at that. He just like talks to you like a real person talking to another person on the telephone. People don't do that anymore. This is such an anachronism. Whoa. It's like going back to the 20s or the 30s or the forties or the 50s or the sixties or the seventies or the eighties or maybe the nineties.

Listener Questions and Answers

SPEAKER_04 19:18

Yeah, I'm still talking to people on the phone. Anybody here?

SPEAKER_03 19:20

You're old.

SPEAKER_04 19:21

Anybody here born in the in in the nineties? They they don't know.

SPEAKER_03 19:24

No, my daughter hates talking on the phone. She doesn't mind FaceTime, but phone phones. No, not gonna be. Not such a big deal. All right. We have some more questions. These came in at talkingrealmoney.com on the contact form. They were typed. Tom turned them into pieces of paper, then he sits down or stands up. I sit down. I I don't see why he stands, but it opens my diaphragm up. Oh, it does not. Mine's just as open as yours, and I'm sitting. Let's leave it at that. Your diaphragm is above your your butt.

SPEAKER_04 19:54

They told me that 50 years ago and it still works, so it's okay. Ah, Nick writes from Forest City, Iowa. VTI and VXUS combo is often recommended over VT because you can qualify for the foreign tax credit on the VXUS fund. This being said, does the same problem not exist for such funds as AVGE and AVGV? This has come up before about the foreign tax credit, which I think is overstated. Over the tax. Yeah, I think it's but VTI and VXUS instead of VT.

SPEAKER_03 20:42

Yeah. Um let me find. I don't really know what the I've never looked it up. See, and these I get these cold.

SPEAKER_04 20:49

I'm sorry, I apologize for that, because I'm just trying to cool you down now that the warm summer heat is upon you in the swamp, better known as Orlando.

SPEAKER_03 20:57

Yeah, we're in the nineties already. We're in the nineties already. And the humidity is what? Um let's see. So Avantus. I think Avantus is not going to care. Well, no, I'm just trying to figure out if if how that how the foreign tax credit works. Yeah, they do distribute some foreign income. Uh yeah, but it's if we're talking stock funds, we're not talking a whole heck of a lot of money.

SPEAKER_04 21:29

Yeah, I keep my dinar in the back just in case, because I they're gonna send me more every month, I know.

SPEAKER_03 21:35

So uh I don't know. I'm gonna go with I don't think it's that big a deal.

SPEAKER_04 21:43

No, I I that was where I started. It's I think it's an overstatement.

SPEAKER_03 21:46

But it looks like the yeah, the Avantis ETFs do distribute some foreign income.

SPEAKER_04 22:00

Go to Europe one day and you can use them or something, no?

SPEAKER_03 22:03

Yeah, let's see. Um let's see if you have Okay, so generally the foreign taxes are like about oh my gosh. Ten to thirty basis points annually on the international portion of the portfolio.

SPEAKER_04 22:24

I've got you know what I'm gonna do? I'm gonna go back and look at my return from last year and see what impact it had.

SPEAKER_03 22:29

Yeah, ten to thirty percent. Um so you're talking at most for even a million-dollar portfolio, you're talking about hundreds of dollars a year, not thousands.

SPEAKER_04 22:44

Not a lot of money.

SPEAKER_03 22:45

Not a lot of money.

SPEAKER_04 22:46

So I think you can let that one go. Albert, right, from Cupertino, California. Isn't that one of your favorite places, Cupertino?

SPEAKER_03 22:53

I've never been there. I've always wanted to go see the big giant spaceship that landed there many years ago and brought us the lovely things that are Apple products.

SPEAKER_04 23:01

I think I think I'm gonna be visiting right next door to there soon, right?

SPEAKER_03 23:05

Oh, because your daughter's going to college down there.

SPEAKER_04 23:07

So I can I can go check it out.

SPEAKER_03 23:09

You can go check out the spaceship? A friend of mine went to the spaceship, he's an Apple employee, and they bought brought me this lovely retro Apple pen. See, it has the little Apple logo on it.

SPEAKER_04 23:23

Nobody is more Apple y than Don McDonald.

SPEAKER_03 23:26

Not well.

Cash Management Strategies in Investing

SPEAKER_04 23:30

Not very many. Not many. No. You were early, you've been continued, and you're you're you get every new thing that comes out within 15 minutes of the factory full.

SPEAKER_03 23:39

Although I have to tell you, this is a sad, sad day for me. This is this was a sad day, like two days ago, three days ago. Sad day. Um we have always watched television through the Apple TV device connected to our our big screen TV, the currently the Sony OLED, the Bravia. And I love the Apple TV. Love it, love it, love it, love it, love it. The one I have I think came out in 2021. So it's but in tech years, you know, it's like a hundred. Getting kind of old. Yeah, well, it got kind of old and it died. So no TV now for the Well no, no, here's the thing. I'm s I'm look, I'm thinking, I know that Apple is gonna be bringing out a new Apple TV in 2026. I know it's coming. The only problem has been Siri. It's coming. So my th my dilemma is do I wait?

SPEAKER_04 24:33

I think here's a suggestion.

SPEAKER_03 24:35

Or do I spend$129 to get a new one and then suffer with the Google TV, which I just abhor that Sony contracted for.

SPEAKER_04 24:44

Ugh. Maybe here's an idea. I'll be down there in uh September and steal one for you. I'll go run by, grab one.

SPEAKER_03 24:53

Great. Okay. My friend will go to jail for shoplifting. That'll be fun.

SPEAKER_04 24:56

It's probably a$200 fine in California.

SPEAKER_03 24:59

Can we can we video so that I can see you being arrested and put it up on YouTube for millions of views?

SPEAKER_04 25:05

It won't it it'd be a$200 fine in California, probably. Something like that. They doubtless.

SPEAKER_03 25:10

Yeah, well they no, I think they've been cracking down after all those uh invasions.

SPEAKER_04 25:13

Okay, enough of that. Do we have another question? Yeah. Uh he says, uh thank you, Albert, for your question. You've made negative comments about cash and the bucket strategy in previous days.

SPEAKER_03 25:24

You just did in this edition. You made negative comments about cash. I know. And I like cash as much as the next guy I can use some actually.

SPEAKER_04 25:35

Why do you have to go there? I don't know. I just bought I just bought my World Cup tickets, and Don is so excited that he wants to share with you.

SPEAKER_03 25:44

I was gonna bring that up and you brought it up. How much were you? How much were they? Come on. You brought it up.

SPEAKER_04 25:51

One thing I would like to talk about the bucket. Four figures? Four figures? Bucket one, where you have enough safe money to cover future distributions. How many years of distribution, RMDs in my case, would you have in bucket number one? And what would you consider safe money? My IRA is 70% equity, 30% bonds and cash. According to Fidelity, my allocation resembles a growth in income strategy. Doesn't sound like a growth in income strategy.

SPEAKER_03 26:16

Well, it's growth with income. I don't I don't care about I don't care about Fidelity's weird name for it. Yeah, it definitely is.

SPEAKER_04 26:24

But the question really on the table is how much should you have sort of set aside in what you call bucket one to pay yourself for how long a period should you have sort of cash? Yeah, I think a year is fine.

SPEAKER_03 26:38

I like a year. I think a year makes everything really easy. It makes your annual uh rebalancing easier. It it sets you up. If you do this at a set time every year, like the end of the year, and you put it away for the next year, it gives you a budget from which to work. Now that doesn't mean that you might not deviate from the budget. Either direction.

SPEAKER_04 26:59

You're going back to the tickets again. I can see that.

SPEAKER_03 27:01

Yeah, and that you'll buy World Cup tickets that definitely cost four figures each. I can't wait to see the beer price. Well, when you pay four figures for a ticket, three-figure beer looks actually pretty decent. Maybe you should drink more of it, it'll make you feel about it less than that.$102 glasses of beer. But they're European, so they're really big.

SPEAKER_04 27:22

I use my dinars. I've got sitting in the back. So um or dinar.

SPEAKER_03 27:27

Dinar.

SPEAKER_04 27:27

Anyway, euros. Dinars. Uh the point is, yeah. I and and back to the negative. The reason I don't like cash is over the long haul, not currently. Currently, it's still, yeah, okay, as Don just pointed out, you're still making four percent. Wonderful. How long that lasts, I don't know. Looking back, over a long period of time, it's been what we call a drag on portfolio performance.

SPEAKER_03 27:51

Having a lot of cash, yes, but you tend to get a little strident. I hate cash. Too much cash. You have too much cash in your portfolio. Cash? Please remove it to cash. It's not efficient. Dude, if you have if you have a year's worth of of spending, that may amount to five percent of your portfolio.

SPEAKER_04 28:12

Cash in the long haul is trash. So it's fine.

SPEAKER_03 28:16

If it's in your mattress or in your Bank of America savings account. Oh three one hundredths of one percent.

SPEAKER_04 28:22

No, I thought it was still one. You looked it up last time. Oh didn't we look it up? Thank you, Bank of America. While you're out making four percent the easy way and paying me. I can't even run the percentage. So small. So, yeah, that's just okay, Albert. Yeah, it's all right. One year, safe money, Don's right, finally. So well done.

SPEAKER_03 28:44

Don't right, finally?

SPEAKER_04 28:45

I know. I have to say it.

SPEAKER_03 28:50

Oh, wait, I know where I had it. I found it at bank rate, didn't I?

SPEAKER_04 28:54

No, I don't remember how you got that number last time.

SPEAKER_03 28:57

I think it was a bank rate. Or it could be I could be just looking it up in my account. I mean, I have a Bank of America account, so it goes up.

SPEAKER_04 29:02

Yeah, I you know how much I have in savings at Bank of America? Zero. I'm still getting like 3.7 at Marcus, I think, or something.

SPEAKER_03 29:11

So I'm getting four at bread. Ooh, CIT Bank is paying 4.1 right now. Apple Bank, speaking of Apple, it's not in any way, shape, or form related. It's paying four. And here we go. At the bottom, at the bottom of the page is an ad. There's an ad for Chase, and there's an ad for Bank of America. APY, as of the date we recorded this at Chase, 0.01. At Bank of America, 0.01.

SPEAKER_04 29:53

And you know, here's the thing. This is the reason I'm hard on cash. Is many of you are inefficient. You have money sitting around there. Probably I bet there's trillions of dollars sitting in those type of accounts, making nothing.

SPEAKER_03 30:07

Why? Here's the thing I don't understand.

SPEAKER_04 30:09

That's why I get it.

SPEAKER_03 30:10

Why would you even bother moving money from your checking account to savings at Chase or Bank of America for those rates? Why would you even bother? At least I'm making a penny on every wait a minute. Wait, is that a penny on a thousand? Penny on a million or something. See, one percent of a hundred dollars is a dollar.

SPEAKER_04 30:38

Yeah.

SPEAKER_03 30:39

So it would be one penny of the dollars.

SPEAKER_04 30:40

Ladies and gentlemen, next program we will come back and tell you what you're making.

SPEAKER_03 30:45

One penny on a hundred dollars.

unknown 30:47

Yeah. Okay.

SPEAKER_03 30:48

Don't spend a lot of things. And they don't even make pennies. You have to wait five years on a hundred dollar account, which is, by the way, what your minimum is at Bank of America. So you put$100 in, and they can't even pay you your income in cash. They can't do it because they don't make pennies anymore. You have to wait five years to get the nickel. So good luck with the transfer.

Wrapping Up: Final Thoughts and Advice

SPEAKER_04 31:12

That's why I'm mad about cash. Okay, you wanted to know? That's why.

SPEAKER_03 31:16

All right. There you go. Let's let's put it away, shall we? Let's end it. Let's kill this one off and try again another day. Uh thanks for listening. Questions? Go to talkingrealmoney.com. Click the contact form or the ask a question form. Want bigger help? Lots of help. You need an hour. You need a half hour with an advisor who's a fiduciary who we promise will not try to sell you anything and won't charge you anything either, which is really a great deal. Just go to talkingrealmoney.com. Click the button that says meet an advisor. You can even say, Yeah, I don't want those kids. I want that old guy, Tom. I want to talk to the old guy. The really old guy. The oldest guy in the office. You are the oldest guy in the office, aren't you?

SPEAKER_04 31:57

Are you really going to go there? You're the oldest place for you to be throwing stones right now? No, no, no.

SPEAKER_03 32:02

I'm not in the office.

SPEAKER_04 32:03

Okay, that's a birthday you've got coming up. I wouldn't think you'd want to raise it in. I'm not the oldest guy in the organization, by the way, neither are you, I just found out. Really? So there's somebody older? I just learned this recently. Yeah.

SPEAKER_03 32:19

Wow.

SPEAKER_04 32:20

I know.

SPEAKER_03 32:20

Not by much, I'm sure.

SPEAKER_04 32:22

I don't know about that.

SPEAKER_03 32:24

Okay. Anyway, we gotta go now. Thanks for listening. Please tell your friends. Really, please tell people about the podcast, please. We're trying to catch up with Jack and Benjamins, and we're getting close. Yeah, well, there's still time for Tom. Because he's fading fast, folks. And there won't be much more of him talking real money.

SPEAKER_01 32:47

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SPEAKER_00 33:00

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SPEAKER_01 33:09

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SPEAKER_00 33:42

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SPEAKER_01 33:47

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