More Knowledge, More Wealth - Ep 162: Inflation

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[00:00:00] Gabe: good afternoon. This is Gabriel Shahin, Certified Financial Planner and your host, More Knowledge, More Wealth here on every weekend, talking about all important topics of personal finance. Our goal is to give you the knowledge you need to increase your wealth, not to the listener. You can always reach out to myself or any one of our colleagues here at Fal Wealth Planning.

[00:00:16] Our phone number is (855) 963-2526. That's 8 5 5. 96 Falcon like the Bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short. Now I'm a principal of Falcon Wealth Planning. We are a fee only registered investment advisory firm that also manages money as well, but we specialize in all comprehensive items of personal finance, and that comprehensive pine goes over something as simple as where you are today to how retirement looks like.

[00:00:48] Talk about taxes. I think now and in the future, investments not taking on. Reducing cost is state planning insurance, folks, you name it. Anything that involves a dollar sign we can help. And we are offering a free financial assessment really to help relate this show to your situation. Really just answer the questions that you may have.

[00:01:06] Folks, give us a call. We'll be happy to help. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the Bird folks, there is a lot going on in the markets right now. I know there's. Issues and feelings of uneasiness with rising interest rates, inflation, stock market volatility. Almost every asset class is going down, Interest rates going up, which is affecting housing prices, folks, I get it right.

[00:01:36] We're in this on a daily basis. I have a home, I have assets, I have loans that are out there. I get how all this impacts it. I get the inflation issues that are happening from multiple standpoints, from going to the grocery store to running a company. So these are times though that keep in mind, they're not unknown.

[00:01:57] They're not. Experience. They're not something that we haven't seen before. Now you may be it first time in a long time that you remember this and it happens two or three times in your lifetime of this magnitude. Yes. And maybe back then it's in a matter cuz you didn't have as much assets. Yes, all of this is correct, but you have to understand the long term play here, the long term strategy.

[00:02:20] And it's really designed and you gotta look at it from a markets in general point of view. You have to know that even. You have to see that there is a reversion to a mean. And so what's happening with interest rates right now, If you look what happened in the early eighties, late seventies, if you take a look, well, the interest rates, at that point in time, my goodness, you were getting 16% mortgages.

[00:02:41] But right now we're at 7% mortgages. I mean, yeah, it's pretty serious, but still, when you look at it from 16%, we're still way down. When you look at that curve, you know, Nike symbol, the logo, the check mark, Imagine the exact opposite of the Nike. Started high from the late seventies, early eighties, came all the way down.

[00:02:58] Now it's just peaking back up. Historically speaking, we are not anything crazy. We're not in a situation that's unsustainable. This does affect real estate prices, that is for sure, But from a piece, Understanding there is a piece of it that you have to take a look at and see. How can this help you? The way, number one, that it can help you is taking a look at your current situation.

[00:03:22] Your mortgage. Mortgage right now is your best friend. I've been saying for years, take advantage of these low interest rates, refinance into the two and a half percent, and the lazy people out there didn't care to do that. Saying, Yeah, I'm at four and a half. I only have seven years left on my mortgage.

[00:03:36] Yeah, but you're going from a four and a half to a two and a half. That's two. Savings. Even if your mortgage was only a hundred thousand dollars, 2% savings on that is a $2,000 annual savings over seven years. Simple math suggests that's $14,000 of savings. I mean, guys, there's a reason the rich get richer.

[00:03:54] Number one, they're not lazy and they do these things, or number two, they hire professionals like us that could do it for you. Now, granted, we don't sell mortgages, we don't do anything like that, but we do hold people accountable and our job, our goal is to make sure you are. We get paid on that, and there are so many different circumstances that I see where people make excuses for everything.

[00:04:16] Folks, you should be happy as hell right now that you have a long mortgage. That mortgage, assuming it's under 4%, and a lot of you guys have it at two and a half to three, especially if you've been listening to me for a while, you should be extremely happy that inflation's going on. Why? Because I bet you a buck that you cannot rent your house.

[00:04:35] You cannot rent it for as cheap as you are. And that's reality. And if I'm not right there, I'll bet you five bucks and 10 years from now, that will definitely be the case, but people don't listen. Whether they're raised incorrectly by or just being financially illiterate, because our school systems do not educate individuals to make proper decisions where they think, Nope, I need to pay off my debt as fast as I can.

[00:04:58] I see adults that have the same issue. We get some people like our Dave Ramsey followers, and I love Dave Ramsey. We're smart vest pros. I get it. But my point is, you, they are making drastically wrong decisions and the people will hear what they only want to hear to pay off debt. Heck, Dave Ramsey himself says, No, you gotta save your retirement.

[00:05:16] 15% first before you look to pay off your debt on your house. So what's going on here? You don't wanna take advantage of a 0% car loan. Like seriously, I don't understand where people are doing this. They don't respect money enough. It must have came to them easy. I'm mentioning this to you, especially with the tone of upset is cuz people are also complaining about not having money, but then they go pay a cash for a card they don't need when they can finance it at an extremely low rate.

[00:05:41] It just, it just doesn't. Up. By the way, folks, if you're just joining us, you're listening to Gabriel Shahin, Certified Financial Planner and your host, The More Knowledge, More Wealth here on every weekend, talking about all important talks of personal finance. And we are talking today about just a simple basics.

[00:05:56] We're upset about high interest rates. I get it, but you know what? If you don't have any borrowing you have to do, if you have that, uh, mortgage that's locked in for 30 years or 25 years remaining at two and a half, three and a half percent, you should be happy. You know why? That extra cash that we're gonna throw in, you can earn two and a half percent in a savings account right now, or a CD or a United States Treasury, one to two year paying over 4%.

[00:06:20] Like, come on, you should be happy you locked. Heck, And that mortgage is a write off for most of you. I mean, be positive. Don't only look at the negative. I'm telling you, I see that time and time again. Why are you upset at the stock mark right now? I don't care if you're retired or gonna retire or working right now, you, it's on sale.

[00:06:43] What is this? The only thing in the world that people get upset at when it's a. say this is the time you buy. This is the time you max out your 401k. If you're planning to, uh, max it out from January, December, you should be maxing it out starting early next year. If we're still in the same situation, you should max it out by the first three, four months.

[00:07:02] Buy in while it's low. You should do Roth conversions right now. You should take your required minimum distributions in the form of stock and let it rebound outside of the ira. You could tax us harvest right now. Be positive. Wake up every day saying, Today's gonna be a great day. It's the same in finance folks.

[00:07:21] Every negative situation, there's a positive, Nobody likes the seed losses of money. I, I get paid on that. When clients lose money, we lose money. Falcon Wealth loses money. I lose money. I don't like market drops, but my God, look at the positive piece of it. If you can't see any positivity in this folks, number one, you shouldn't be doing it on your own.

[00:07:40] Number two, you need help for, and number three, you need something to take your. Puts a smile on your face. Watch football. The FIFA World Cup is happening or gonna happen soon. Yeah, just find a hobby. Enjoy the nice weather. Whether you're in Southern California, whether you're in the Midwest, wherever you are, northern ca, I don't care.

[00:08:00] Just be positive. I see so many people these days in the media, social media, whatever it is, is job is to get you upset and people are making that affect their life and. If you need help with this, and if you're losing sight of the positivity of what's going on, I don't care what your situation is, there's positivity to it.

[00:08:17] God forbid there's sickness and illness and death out there, there's still positivity to it. I promise you. I know this from losing my father when he was young. My dad was young. My mom, 48 years old, widow that's never been remarried. I was 23 at the time. Eldest of the family had to take care of the family like I.

[00:08:37] When things are bad, it can look terrible, but being positive can take you out and really build you to something stronger than you were before. You don't know what your calling is until you've dealt something. It's how you deal with what's dealt by the way. Folks, if you need help with this, and this is sounding, sounding more like a life coach than anything else, give us a call.

[00:08:58] We're offering a free financial assessment. We can take a look at your situation and put a positive spin on it. You don't know what the end of the road looks like, cuz you haven't gotten there yet. You don't know what retirement looks like. You don't know what it looks like when you want to buy a house, and you're still maybe upset for not wanting a house.

[00:09:14] Whatever the case. We can help. We do this on a daily basis, folks. We have thousands of clients. We've helped tens of thousands of people. Folks give us a call. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the bird, where you have to sometimes take a look at a situation and find where is the opportunity.

[00:09:37] That's what separates success versus unsuccessful is seeing where is the opportunity for. Enhancement and growth in anything life. Think about those items. If you can't find any opportunity there, then you're just not looking in the right spot. And if you need help, there's a reason, right? People go to a country for the first time, they hire a tour guide.

[00:10:01] They know the place better, They can show you more efficiently. They can get you in front of the lines faster. They can get you things cheaper. You think it's expensive to hire A professional tour guy tries an amateur getting ripped off and left in the middle of nowhere, . So all I'm saying is there are great things going on in this market right now.

[00:10:23] Inflation interest rates by being able to leverage currently what's happening right now along with the low. Markets, whether whatever you're invested in, whether you're a real estate investor, whether you're a crypto investor, stock investor, flipping cars investor, gold investor, there's positivity to everything.

[00:10:42] This is the time you have to re-look and understand your situation to capture what the next positive, the theme of today steps are, what the next positive steps. Hopefully you didn't get caught in a Ponzi scheme or you didn't get ripped off on some investment that didn't exist and you're starting with zero.

[00:11:01] And if that's the case, I'm so sorry to hear that, but guess what? You, there are still positivity that can be from that. You have your health. You may have to go back and work, you may have to do other alternatives. You may have to bring in somebody to live. You may have to downsize the house, you may have to move out of the state.

[00:11:20] Whatever the case is, there's always a way. When I come back, I'm gonna share with you some ideas, some ways that can enhance your situation of what you're currently doing right now if you're feeling down or need some extra income. So we're gonna talk about these ideas, cuz remember we do this every single day.

[00:11:35] So we'll give you some ideas that can help enhance your situation. For right now, we'll be right back after a few words.

[00:11:42] Welcome back folks. This is Gabriel Shahin, certified financial planner and your host of More Knowledge, More Wealth here on every weekend, talking about all important topics of personal finance. And today we're talking about what's going on in the market right now and what, When you say market, what are you talking about?

[00:11:54] You talking about the stock market, You're talking about high interest rates, you're talking about inflation, you're talking about real estate's, kind of dropping in value, talking about gold. Price is not doing so well. What are you talking about? You talking about cryptocurrency? I mean, serious. Baseball, car trading market.

[00:12:10] Yeah, that's dropped too . So it doesn't seem like a lot of positivity, but what I'm trying to tell you, there's always something to be positive about. There's always something that you could do to enhance your situation, and by being positive about that is huge. And sometimes you just need to get outta the house and turn off that TV because some situations, some are destined to be doomed.

[00:12:29] And what that is is watching Fox News or cnn. As much as I love one or the other of the networks, you get my point. Sometimes it can just put you in a bad mood. That's how they get ratings. By the way, when you're in a bad mood, you wanna watch more. So the unfortunate part to that is it comes at the expense of you.

[00:12:45] They get paid from that, and it just gets you in a worse mood. So how can you do if your situation is absolutely bad and you feel you're so far behind? Number one, don't just say that. Get an opinion. Get a second opinion. Get a third opinion. You're gonna have somebody try to tell you that you can't retire your thing.

[00:13:00] Situation's terrible. What if some person's just focusing on your invest? What if one person's just focusing on your expenses? What if one person's just focusing on your goal of getting a second beach house, a second beach house, not a second home, but a second beach house. I don't want one in Newport Beach.

[00:13:16] I want on Newport Beach and I want one in Pismo Beach. You get one. I'm getting saying. So your situation may not be as bad as you think. That's why you wanna get multiple opinions. If you went to a doctor and you feel great, and in that doctor's visit, it's like you have terminal cancer, you have six months to.

[00:13:32] What are you gonna do? You're gonna get a second opinion, especially if you feel great. They say the second person's like, Oh, I can see why he does that. You have these tumors, but I, they can be doable. Then you go to a third opinion and you're like, Oh no, that's, those people are idiots. You, uh, swallowed something really bad or bad indigestion, or you're just swollen because, uh, I can see here you got hit by a baseball bat by your child playing with you, you know, whatever it is.

[00:13:57] Wanna get that opinion. . But the idea. Of course on your finances. How come you don't do that sometimes? So that's why we recommend getting that second opinion of your situation and of nothing else. You get advice, get advice not only on the financial situation, but the tax situation, the state planning situation, overall situation, business situation.

[00:14:17] Folks give us a call. We can help. We are offering a pre-financial assessment and we help a nationwide. You can call now. We have people right now there that will answer your phone calls. Our phone number is eight five five nine six three twenty five. 26. That's 8 55 96 Falcon like the Bird. Or visit our website@falconwealthplanning.com.

[00:14:38] That's falcon wp.com for sure. I wanna kinda share with you some ideas. If in fact you are struggling and feeling like you're behind and you're working a job, maybe even two jobs, and with a way you can make extra money, Now here's a couple ideas. Some of them are not popular, but you just need to know cause some people aren't aware.

[00:14:57] Number one, you can rent. An extra space in your garage for people to store their car. You get a few hundred bucks a month from doing that. You go to an app such as neighbor app, and you can rent that out an extra spot, or your parking space. It could be just your uh, uh, uh, driveway where you could put one or two or three cars there.

[00:15:17] So that's an idea. You can make 500 buckets extra a month by doing that. I didn't know your neighbors, but hey, not your issue. Number two, you can rent out a room. In your house. You can do that through multiple outlets. You don't need my help to tell you that You can do it through Airbnb, V B R O or other, uh, Craigslist, whatever the case is.

[00:15:36] I highly recommend doing a background check on all of the following. Um, but the point is, is you can do that, have people come and stay with you. Option number three is you can just sell and downsize your. To someplace in the area or outta state even. You get a second job. Now, what is that? I already said you had a first and second job, but if you're a third job, what if you're retired and you're not feeling rude, going to your accounts, going down?

[00:16:01] It's a gig economy. What does that mean? You could work as you want, as you need and how, as long as you want. So first example, you hear this all the time with Uber and Lyft. Okay, well maybe you're not good at driving, let alone just saying you don't want. It. There is sites like Fiber and Upwork, or the skills that you had working before, maybe as an engineer.

[00:16:21] It could be skills that you had as an artist. It could be skills that you have as a video editor, skills that you have as somebody who, uh, Types things out for people. Writes things on people's behalf. People post things on their all the time. It could be SEO work, it could be programming work, folks. You name it.

[00:16:38] You could do a lot of things through that or see your skills and you can put it out at $5 an hour to $500 an hour, depending on the skill set you can compare to see what the work you want to do, what they're charging for. Guys, there are no shortage of things to do and a lot of people. Especially with unemployment, still so low are looking, especially with the average prices going up.

[00:17:02] They're looking for part-time workers for three main reasons. Number one, flexible hours. Number two, you don't get benefits, and number three, you may be eligible for a 10 99, which saves them even more money for not having to pay payroll taxes as an employer. So the classic case was working at Ace Hardware part-time or home.

[00:17:25] You like tools, you're good with your hands, and you get a discount for working there. Everybody's happy, so you could still take advantage of that for places that you like. One of my clients who does very well for himself, he's a marshal on a golf course, and he gets a golf now for free. He loves it. He's happy, and he's kind of the boss at times too,

[00:17:45] Cause you know, at home, his spouse will and be boss. Uh, bad joke, but you know what I mean. Take advantage of these things. By the way, folks, if you're just joining us, you're listening to Gabriel Shahin, certified financial planner and your host of More knowledge, more Wealth here on every weekend. Talked about all important talks of personal.

[00:18:02] today we're talking about just having that positive light and just making sure you are always seeing that there is something out there that's available to you. And you may have a financial professional, you may have a trusted source, you may have a mentor, you may have a spouse that handles everything and says everything's gonna be fine, but what's the, There's no skin entrepreneurs of getting a second opinion.

[00:18:21] For example, does your financial planner or spouse or anybody talk about. Economy that's out there, or ways that you could save money by renting out your garage space or renting out and getting a, uh, a roommate to help with the cost? Probably not. Folks. You know why? Because they focus on investments or investment advisors, they only focus on things that can pay them.

[00:18:41] They'll send you referrals for people insurance cuz they get kickbacks on insurance. Heck, some of these people have their investment advisors out there get paid from the custodian that their money is at. Their custodian says, Hey, you have to invest them in certain things and then we'll pay you in addition to the 1% you're collecting.

[00:18:56] We'll pay you in addition if you offer them these certain funds. I see that and it pisses me off when I see that cuz they hold themselves as fiduciaries. They hold themselves out. People who do what's in your best interest, but in reality that's not what's. In reality, they're telling you that they are doing what's in your best interest, but really being self-serving by getting paid from these third party custodians.

[00:19:18] And it just upsets me. And if anybody working with somebody at the bank, cuz those are commission based advisors and they say they got your best interest folks, they are employed by the bank. They have to make the bank happy before you. And that doesn't matter if they have the CFP as served by a financial planner.

[00:19:32] Yes, there's fiduciary clauses in there, but at the end of the day, who's their boss and which quota do they have? This sounds like you. If this sounds like you want a second opinion, folks, give us a call. This is where we can help. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the bird. We can help relate this show to your specific situation.

[00:19:58] We can help people in person over the phone. Doesn't matter where you live through Zoom all across the country, folks, we've got offices scattered all throughout. We would love to help give us a call. But the point of this is whether you're working right now and you're complaining about your work, what?

[00:20:14] You got work. You're making money. You're saving money, okay? Now you retire. What you're gonna retain, complain about being retired. I just don't want you to be a complainer. I want you to be a winner. I want you to be someone that's always positive. Look at the people that are winners in the world that always look at the positive things of they of light.

[00:20:31] They look at life as a whole of what good can come out of it. You hear the classic saying, Glass half empty, glass half full. Okay, well I don't believe even a glass half empty is an option. Take that half full or empty and fill it into a smaller cup to make it a full cup. It's always a positive day.

[00:20:49] There's always something to be happy about. There's always positivity in the. . You hear things going around across the world in China, in the Middle East and a lot of places, and there are, We are blessed to be an American. We are blessed to be in this country. I'm a first generation born in this country, family coming from Israel, and it is a blessing where we live.

[00:21:12] And so family over there, they were in Jerusalem and Bethlehem in that area and it was suppression over there. Not a lot of positiv. There's not a lot of growth. There's not freedom of religion. I mean, it's a mecca, whether you're Jewish, Muslim, or Christian like myself. There is not, I mean, always conflict over there.

[00:21:35] So looking here in this country, obviously I was born here, but the point is, is I still hear the stories and it's a blessing of where you. It's a blessing of the job you have. And guess what? It's easy to have a job or, uh, excuse me. It's easy to get a job when you have a job. So if you're not happy now start looking for another one cuz you'd be surprised of the amount of attention you can get.

[00:21:59] Whether you're looking on LinkedIn or Indeed. Just be positive. Don't complain. Act. It's so easy to complain. I'll never forget my fifth grade pro, uh, professor. Ooh, fifth grade teacher, one day in class. I said, That sucks. And so he stopped the class. He goes, It sucks. What sucks? I told him why it sucked. He goes, You know what?

[00:22:20] It's very easy to say it sucks, but give me an idea to make it better. That stuck with me for the rest of my life. I remembered that almost 40 years ago. I remember that in the same moment. It's easy to say it sucks, but make it. Don't say that sucks. Say This is what I want to do to make it better. And that's for your own personal development.

[00:22:39] That's for family, that's for friends, that's for career, That's for fun activities. Always look to enhance your life. You deserve it. It's your life. Make it better. By being positive. That's always the first step. Look at this. This personal finance show is becoming more of a mentorship show, but you get what I'm saying.

[00:23:00] I just wanted to focus on that. Sometimes I see some negativity out there and it's sad from where I sit. Folks, this was a fast, fast show. I want to thank you for joining with us this weekend. Feel free to reach out to myself or any one of our colleagues here at Falcon Wealth Planning. Our phone number is (855) 963-2526.

[00:23:20] That's 8 5 5 96 Falcon. Like the bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short where we can help relate this show to your specific situation. Folks, thanks for listening. Enjoy your weekend. Have a great week and God bless.