00:01
Peter Dunn
Well, hello, everybody. It's the Pete the Planner show. No frilly opening, no pretense. I think I use that word incorrectly. Joining me this week on the show, Damian Dunn and Kristen Ahlenius. Kristen, hello.
00:20
Kristen Ahlenius
Hello.
00:21
Peter Dunn
Kristen, I feel like I occasionally will misprint pronounce your last name.
00:26
Kristen Ahlenius
You kind of did a little bit just there. I know it's hard.
00:32
Peter Dunn
I don't know if it is.
00:36
Kristen Ahlenius
It's kind of phonetically incorrect.
00:39
Peter Dunn
Do you care to correct it for the record?
00:42
Kristen Ahlenius
It's Ahlenius. Like miscellaneous.
00:46
Peter Dunn
Is that not what said?
00:48
Damian Dunn
There was an e. Aleneous, I think is kind of what that was.
00:53
Peter Dunn
Definitely a slip of the tongue. Damian, it is good to see you again. We've not done a show in a few weeks for various reasons. So it's good to be back, everybody. Big show. Big show. Today we are going to talk about I bonds. Got a listener email about that. We are going to talk about what the market has taught us in the last 30 days, the wild, undulating stock market and cryptocurrency market. And we are going to talk about President Biden's proposed directive to Congress to have a federal gas tax holiday for 90 days. We're going to talk about those things. So it's with that we say hello to Danza She's reporting live from Flagstaff, Arizona. Wow.
01:46
Kristen Ahlenius
Beautiful.
01:47
Peter Dunn
It is lovely. Is anyone getting i? Did you hear me back there?
01:52
Damian Dunn
I did.
01:55
Peter Dunn
I'm doing tech issues live on the show. I got loud and then it came back. Kristen, you got headphones on. Dame's got headphones on. I have headphones on. Maybe I was just too loud. Go figure. All right, let's start the show. Timers up, everybody. Throw your timers up. Kristen, what do you think of the Pacers draft before I start the show?
02:19
Kristen Ahlenius
I do not know enough to have any semblance of an informed opinion about that.
02:25
Peter Dunn
I will say NBA draft expert of our show, Ted Dunn was very pleased.
02:31
Kristen Ahlenius
Good.
02:33
Peter Dunn
Yeah. All right. In three, two, one. This week on the Pete the Planner show, we answer your money questions. Here's how the show works. You email us. Askpete@petetheplanner.com that's askpete@petetheplanner.com. We'll answer your email on the air. By we, I mean Kristen Ahlenius from your money Line and Damian Dunn from your money Line. Kristen, good to be with you again. Thank you, Damian. It is good to have Kristen back.
03:05
Damian Dunn
I totally agree.
03:07
Peter Dunn
All right, so we're actually starting with a listener email. Hey, Pete, what's up with I series savings bonds from the treasury? How's that for a short and sweet question? Suitable for a podcast? Or is it better to add some personal info for you and Damian and Kristen to make assumptions about? At any rate, the current interest rate is 9.62% changes every six months based on the inflation rate. Individuals are limited to $10,000 investment per year. But for a very safe return during high and unpredictable inflation, it's a great place for savers to park money while there is a ten year maturity. The bonds will pay interest for 30 years, and after a minimum of one year holding period, there is a mere three month interest penalty for early withdrawal. Can be purchased online or tax via tax refund, with a minimum of $25 to $50, depending on whether you buy electronic or other paper bonds order paper bonds.
04:05
Peter Dunn
So anyway, that's the question. Do people want I bonds? I think the answer is yeah. That's a pretty sweet deal. Kristen. I think we have a piece on the blog about it this week. What are your thoughts?
04:22
Kristen Ahlenius
I think yes, but you have to be very careful about the use for the dollars that you're investing. I think that one year marker can maybe trip some people up. I probably wouldn't suggest putting your emergency fund in I bonds, but I certainly think that there's a place for I bonds for a lot of people.
04:43
Peter Dunn
$10,000 dame. So it can't be the $10,000 that is probably a lot of people's emergency fund and then some. So it's going to be a second tier, a second bucket move. You're not putting retirement assets necessarily into this because although there's some tax sensitivity to it would be a waste of that perspective. So how do you get your head around it?
05:11
Damian Dunn
Kristen is exactly right. It's going to have to be a very narrow focus on what dollars are going to get deployed into this sort of account. The emergency fund not the right choice, but if you want to start being a little bit more defensive with your assets, I bonds might not be the worst place for them. They're going to have a nice little return for you. While it seems like everything else has fallen off the map and it's kind of that out of sight, out of mind sort of deal as well, where you don't have it staring you in the face all the time, reminding you of how bad things are going. So the big limit is going to be rather capped on what you can put in there. However, I did read an article not too long ago that a guy got really creative and aggressive with all the different sorts of accounts he opened, and I think he ended up squirreling away 80,000 or $90,000 in Ibonds through different personal accounts and maybe a joint account and some trust accounts and then accounts for his kids.
06:11
Damian Dunn
And he was all into I bonds and that's the route he chose to go.
06:17
Peter Dunn
Can I ask a question that I'm embarrassed I don't know the answer to? It says the current interest rate is 9.62% via the email, changes every six months based on the inflation rate. Is it the intro rate changes every six months, or the actual interest rate that you would earn changes every six months?
06:34
Kristen Ahlenius
Isn't there a fixed and a variable rate so there's a flat rate and then a variable inflation rate?
06:42
Damian Dunn
Yeah. That base rate is going to be really small, and then that variable rate is what's really pushing the return right now.
06:49
Peter Dunn
So conceivably seven years into this thing, or hopefully two years into this thing, that variable rate has come down quite a bit because inflation is under control. Right?
07:01
Damian Dunn
Fingers crossed. Man if we see prolonged periods of sky high iBond returns, we're probably not going to like what's going on around us.
07:11
Peter Dunn
Facebook Live. Viewer. Ben thank God for him. Fixed is 0% for new bonds issued this year. So there you go. Wow. Ben's our bond expert here on the show. Kristen, it gets me thinking in light of interest rate increases and the Fed really stoking the rate with the last one was a 75 basis points bump. That's going to happen again next month, likely. What financial products have found themselves good and bad right now? I hate to say it, but a mortgage, new mortgages are finding themselves at a rather high interest rate going forward and will continue to climb, by the way, with the next 75 basis points increase. Do you think if someone is conceivably looking at housing right now, they would want to lock in their interest rate immediately?
08:08
Kristen Ahlenius
I would think so, based on what we're seeing right now. Because rates are up even from we all know I purchased a house. It was a terrible decision. Rates are even up from when I bought my house and I went under contract like 45 days ago.
08:26
Peter Dunn
So were you able to lock in 45 days ago?
08:30
Kristen Ahlenius
Yes, and technically my lock expired the day of closing or the day before closing, and my lender had to pull some strings. I don't know what he had to do, but they were able to keep the rate that they had promised.
08:45
Peter Dunn
The queen of leverage. Do you remember how much the pay had changed in that 45 day period?
08:51
Kristen Ahlenius
He didn't tell me, and he didn't tell me until it was after all until it was already worked out. He was like, well, technically, your rate expired yesterday. I'm like, wow, that's nice.
09:02
Damian Dunn
Mortgage theater, I think, going on there. He's trying to angle for a tip. Do you have a tip jar sitting on his desk? That's what I want to know.
09:08
Kristen Ahlenius
Don't think that they allow that.
09:10
Peter Dunn
Dame according to bankrate.com, CD rates still are not benefiting from interest rate increases. One year CD rate is 37. Basis points, zero point 37% on a one year CD, five years, zero point 59%, nothing even close to 1%.
09:34
Damian Dunn
I think I got a notification from my high yield savings account that bumped it up to 0.7% in just a normal FDIC insured savings account. So I'm feeling pretty flush right now with my emergency fund savings. I might ask for an extra cherry on my ice cream cone.
09:54
Peter Dunn
I have to half correct myself here because I think Kristen was about to do it. I'd rather correct myself than have her correct me, but that is the average. But there are other rates, and then a bank rate, of course, lists them. Capital One, for instance, is 2.6 on a five year, 2.5 on a two year. Better than it's been the last ten years. CDs have been paying nothing. Not that I care, but I do know there are personally care, but I know there are people that love the safety and security of the FDIC and love CDs.
10:31
Damian Dunn
I bet there's some significant minimums for those rates.
10:34
Peter Dunn
To get those rates, $25,000. Actually, let's go to call that significant.
10:44
Kristen Ahlenius
I was actually going to kind of rub it in Dame's face a little bit because my cash reserve account is paying 1.1%. So betterment is the move, my man.
10:54
Damian Dunn
I'm already there. I'm just in the savings side.
10:57
Kristen Ahlenius
Okay.
10:58
Peter Dunn
With a minute left in this segment, Kyle asks, do you think the move is to sell my home, make some money to use for investments, and then rent for a year or more until the market corrects? I've heard this from a few realtors. I mean, there's risk there. I mean, there's absolute risk there. I don't think it's a terrible idea. Dame, what do you think?
11:15
Damian Dunn
That's tough because you have no idea what the housing market is going to do over the next year. Mortgage rates, if prices don't come down but mortgage rates continue to increase, you might be in a bit of a pinch.
11:26
Peter Dunn
Yeah. Do you think the move is to sell my home, make some money to use for investments? So then the issue is, I hope Kyle does not think he's going to pull the money back out of the investments to use his down payment money, because that's a whole other nightmare. So, Kyle, we're on the fence. Kristen, what do you think? 10 seconds. What do you think about that idea?
11:43
Kristen Ahlenius
I'm with Dame because a year ago, I know what we all would have said.
11:48
Peter Dunn
That's true. Coming up after the break, is the gas tax holiday really matter? That's next on the Pete the Planner show. I'm Pete the planner. That's a good way to look at it. Kristen, last year we would have been like, well, there's some risk, and you would have gotten burned, like, big time.
12:08
Kristen Ahlenius
Yeah. Because the house that I sold a year ago is for sale again. 22% increase.
12:16
Damian Dunn
Yeah.
12:17
Peter Dunn
How long will it take to sell, do you think?
12:20
Kristen Ahlenius
It's probably already under contract. It went up for sale yesterday.
12:26
Peter Dunn
Yeah. Speaking of inflation, you want to do our segment on gas tax? It got me back on TV this week. I'm reluctantly going back on television right now.
12:41
Damian Dunn
Then don't.
12:43
Peter Dunn
Well, that's right, because you guys are about to start doing it. Kristen, you have been talked to about this, correct?
12:50
Kristen Ahlenius
A little bit, yeah.
12:52
Peter Dunn
Okay, good. In three, two, one. Back on the Pete the Planner show. Kristen, I don't know if you saw the news early this week that President Biden was going to urge, suggest, require, I don't know, Congress to suspend the federal gas tax to the tune of 18.4 cents a gallon for three months in order to provide much needed relief at the pump. Kristen, I happened to do some television around this idea this week, not criticizing it in a political sense, but saying, oh, let's take a look at the math. The math does not support this being at all helpful. And then you can go on to argue that the lost tax revenue puts us in an even worse spot. So, Kristen, where's your head at 18.4 cents per gallon savings on the average person in a quarter driving or buying 144 gallons of gas for a total savings of $26?
14:00
Peter Dunn
How do you get your head around that?
14:03
Kristen Ahlenius
I love the sentiment. I think that trying to find ways to be mindful rule, I appreciate all of that. I think that how much did you say the savings is? A quarter?
14:19
Peter Dunn
$26 or on 13 fill ups, $2 per trip over spread out over a quarter. So every week you save $2.
14:29
Kristen Ahlenius
I think that if the $2 is the breaking point for someone, it's not the gas tax that they need to save them.
14:37
Peter Dunn
Dame, how do you get your head around that?
14:41
Damian Dunn
I believe President Obama called gas tax holidays gimmicks, and I tend to agree with President Obama in this case. I agree with Kristen. I appreciate the sentiment, but I don't think this is the fix that most.
14:59
Peter Dunn
People are looking it's really easy to get cynical, especially in politics. And what I don't want to do is to have this be a cynical approach to what is happening. But I will note, I think there's a tremendous amount of pressure on President Biden to do something about gas prices. You've got to do something. You must do something. He's being accused of right or wrong. Not even for me to say right or wrong being the reason that gas prices are so high. We've talked about it on this show, the you did that stickers at gas pumps or a picture of President Biden. So there's a lot of pressure to do. I think I think this decision is simply, okay, I'll do this because that's kind of the one thing he can do. So I don't know. I don't think it helps. I get why he made the decision.
15:57
Peter Dunn
I won't go as far to call it political theater, but I just think it's completely pointless. And the lost tax revenue is a bigger problem than that. If one of our issues is infrastructure, then I assume the federal excise tax goes to infrastructure. Kristen, what do you think?
16:19
Kristen Ahlenius
I think that if gas prices were lower and we could look at this as a percentage saving, I think I would feel better about it. But when gas is $5 a gallon plus and you're talking about saving $0.18, it even hurts to look at it as a percentage as well.
16:36
Peter Dunn
Yeah, Dan, were talking about this around the office this week, and the question was, well, isn't this supposed to spur governors to also suspend their own state excise tax? Because indiana, for instance, there's been a talk of Governor Holcomb suspending the gas tax, which is sixty cents a gallon. All told, combined with the federal tax, you're looking at over $100 for that quarter, at least $33 a month. That does a little bit more. I mean, that's an additional pizza meal a month. But Dame, I don't think and again, without getting political, I don't think a Republican governor is going to follow suit motivated by a Democratic president. I just don't think that passes the sniff test.
17:22
Damian Dunn
Yeah, I don't know. I think if it was a meaningful idea, there would be no reason that would be a barrier for somebody to try and get that pushed through. I think one of my biggest issues, and this is a very Hoosier thing, because it's Hoosier centric why is our gas tax variable? I don't understand why that changes with the price of gasoline. Shouldn't it just be fixed? I mean, if they're using it to budget off of for other road improvements and infrastructure improvements, doesn't it seem like it should just be fixed and it should be a consistent part of the annual budgeting process? The fact that it goes up when the price of gasoline goes up and it goes down when the price of gasoline goes down makes zero sense to me. And that seems like that could be a very meaningful change that could be enacted going forward, say, hey, let's fix this variability, make it consistent, and you don't have to worry about it going on.
18:20
Peter Dunn
Kristen, I often think when we start talking about sort of government and economics and tax revenue, I feel like my brain goes to this oversimplistic place of, well, yeah. I mean, to Dame's point, it's like this makes no sense when you think about it. Do you think there's got to be something we don't understand, or do you think it really is as easy as we're making it out to be?
18:43
Kristen Ahlenius
I would like to think that there's a lot that I don't understand, but I probably share that sentiment. Is that why does it have to be so complicated? Plus, Dame just taught me something about gas tax indiana.
18:57
Peter Dunn
Yeah. I would also note the state of Indiana is about to return $1 billion of surplus tax revenue directly to Hoosiers. To Dame's point, why is the gas tax increasing? Because at the fixed rate, as the total aggregate tax revenue, there was a surplus. So I'm struggling to understand how a tax increase for that particular area even makes sense.
19:29
Damian Dunn
I mean, I guess if somebody was going to start arguing supply and demand as the price of gas goes up, fewer gallons should be purchased. You're going to need a bigger chunk of that to be able to fund your projects. But who wants to talk about economic stuff?
19:47
Peter Dunn
I'm going to express, I believe, what could be a libertarian view of this. Potentially, we can't call on government to solve that problem because, and I'm not a libertarian, I'm just saying, like a libertarian would say they're going to stay completely out of it. Isn't the solution to this a libertarian solution, which would be, hey, use less gas. That's the solution to your budget issue? Or is that like an elitist thing to say? Kristen, am I seeming like an elitist?
20:21
Kristen Ahlenius
Maybe a little bit, because I don't think everybody has that opportunity. But I do think that people can be more mindful, and I do think you have a lot of control over that component of your budget.
20:34
Peter Dunn
Maybe I find the intersection of freedom and Prudence is at a weird crossroads these days. Right. And I don't want to go in too far here. I would just say I want the freedom to drive wherever I want, whenever I want. Okay, I feel you. It's just not prudent. So I think freedom and Prudence have a very strange relationship in the current zeitgeist. Damien, I think we talked about this a couple of weeks ago. You have changed some driving habits. I have changed some driving habits. Kristen, is this why you got the golf cart up and running, so that you can change your driving habits?
21:13
Kristen Ahlenius
Yeah, the golf cart's electric, so just driving it around town, you can take it to the grocery store. So who needs a car?
21:22
Peter Dunn
Before we go to the break, is there any irony that Elon Musk was talking about Tesla trying to avoid bankruptcy this week? In a period of time in which electric car demand theoretically should be the highest ever with $6 a gallon gas, should we be surprised by this piece of news?
21:40
Damian Dunn
Are you surprised by anything Elon talks about on a day to day basis?
21:45
Peter Dunn
No, that's the thing. It's like when people are like, I'm surprised, and it's like, really? There's no surprise. The surprise is when something is unsurprising surprise. That's how it works. Dame coming up after the break, kristen is going to change all of our lives with stock market tips to make your family a billionaire. Wait. Okay. They may not get through. Actually, we're going to talk about has the stock market taught us anything in the last month or so, especially crypto markets? That's next on the Pete the Planner show. I'm Pete the planner. I like to watch Kristen's face, just generally, but when I put her in an uncomfortable position on the air, I like to watch her react.
22:35
Damian Dunn
I saw that little cringe earlier when she tossed to her and she was like she tried to answer the question as best she could. It was great. It's like watching a video of myself from three years ago get put in places that I didn't like.
22:50
Kristen Ahlenius
I'm soft. I don't want people to email and be like, she's too political.
22:55
Damian Dunn
By the way, you throwing in that little maybe at the end of that rant you had is not going to save you from the listeners.
23:03
Peter Dunn
Yeah, kristen, I think I've told you this before. This was 2012.
23:11
Damian Dunn
Maybe.
23:12
Peter Dunn
No, when it came back, it doesn't matter. It was during the Obama administration. I would write a column in USA today, and I would have both extremes of the political spectrum send me hate email about making an opposite point about the exact same column, so you just can't avoid it whatsoever. But to be fair, I also have someone else within our organization read my mean. Come on. Big rick swank makes an appearance. We did come on the air 2 hours late today in various meetings and whatnot, but all right, dame, you ready to go? Kristen, you ready for some market updates? I guess I should actually pull up some market data.
24:06
Damian Dunn
Do I need to pull up?
24:08
Peter Dunn
Yeah. Oh, boy.
24:11
Damian Dunn
Hang on for one.
24:12
Peter Dunn
Oh, no, I'm going to throw up when you read these. Tell me when you're ready, big man.
24:22
Damian Dunn
I've got to get the google drive open. I tried to close as many tabs as possible.
24:27
Peter Dunn
Oh, that's too bad. I really like a bogged down experience.
24:33
Damian Dunn
Everybody does.
24:34
Peter Dunn
Kristen, have you got your house exactly how you want it now?
24:38
Kristen Ahlenius
No.
24:39
Peter Dunn
Come on. I don't believe you.
24:41
Kristen Ahlenius
Actually, no. There's no doors on my cabinets because they're getting painted. The walls are mostly painted. I had to get on a really tall ladder and stand on my tiptoes to paint all the way up to the ceiling. That was terrifying.
24:56
Peter Dunn
Is our group life insurance up to date, Dame?
25:00
Damian Dunn
Close enough.
25:01
Peter Dunn
I think it is. Am I your Beneficiary Kristen?
25:05
Kristen Ahlenius
Sure.
25:06
Peter Dunn
Yes.
25:08
Damian Dunn
Awesome. Are your dogs the beneficiary?
25:12
Kristen Ahlenius
My sister is under the assumption that she cares for the dogs.
25:18
Peter Dunn
Leona Helmsley was an iconic New York socialite multimillionaire that used to own hotels near central park back in the day. She is a pop culture icon for a different generation, to be kind. I believe she left a massive estate to a cat. So I think your dogs are perfectly in good hands, in good paws.
25:46
Kristen Ahlenius
I respect it.
25:50
Peter Dunn
Can I tell you about some trash talk that happened at my house last night that got me thrown completely under the bus? Ali and Ted were talking about high school athletics, and my wife, of course, because she was an excellent athlete, said, well, I was actually allstate because she was. And Ted said, dad, were you ever allstate? And my wife said, no, but he worked for allstate.
26:19
Damian Dunn
Wow.
26:22
Kristen Ahlenius
From the top rope. Got him.
26:26
Peter Dunn
That's brutal. That was funny, though. But that's good. That hurt. I was honorable. Mention all conference in football doesn't seem so honorable, does it, as a senior? That's a great question. I think as a junior, maybe not a senior. I got worse. I don't know. Who cares? I don't care. Okay, here we go. In three, two boy, I'm not ready.
27:01
Damian Dunn
Those are the best false start. Okay, honorable mention, stop.
27:06
Peter Dunn
Three, two, one. Back on the Pizza Planner show, this will go down as honorable mention for the best show of the year. Joining us, as always is the queen of content, kristen and Dame from the running line, team. Kristen, I don't know if you noticed, but the stock market, I think it's intoxicated. It is swinging wildly, thousands of points at a time, heading in every which direction as we sit and record the show. Today on Friday midday, the 24 June, the S and P 500 is up 2.33% today and year to date down 18 and a half percent. Have we learned anything in the last month or so with the stock market.
27:59
Kristen Ahlenius
Kristen, and not look at it? I think that's the takeaway, to be.
28:05
Peter Dunn
Honest with you, it feels that way. So the last month, looking at the market for the last month, it opened that time frame for the month at the S and P 500, specifically at around 3900 and today it's at 3800. So the last month, even though we've had a rally this week has been pretty brutal and the twelve month change is just under 9%. Dame, I'm guessing this has really affected our stock predictions for the year.
28:38
Damian Dunn
Indeed. I mean we're of course professionals at this and so we did all the appropriate research we needed to in the five minutes before that show started to pick the ones that were going with. But our winners for the year that we chose that were going to do great and just be top notch choices, cushman Wakefield, your choice down 31.4% for the year. Berkshire Hathaway, my choice down 7.6.
29:11
Peter Dunn
You're winning.
29:12
Damian Dunn
I'm killing you by losing 7%. Our losers amazon. Pete, you picked Amazon. This math is not checking out because they had a split. Are you down 21? Is that what it is?
29:28
Peter Dunn
No, it's 20 to one split.
29:33
Damian Dunn
I think you're down 32% for the year in Amazon.
29:36
Peter Dunn
Yes, I'm a shareholder, but no but, you know what I mean?
29:39
Damian Dunn
And Elon continues to mess things up for everybody regardless of where you sit. And Twitter is down 8.7% for the year.
29:49
Peter Dunn
And as I noted, Kristen, the S and P 500 is down 18%. I had it pegged at, I believe at a 7% loss. Had it at four. Boy, what's it like working with us?
30:02
Kristen Ahlenius
You guys are great.
30:04
Damian Dunn
Wait a second, you didn't have it for a 7% loss, you had it for a 7% gain.
30:08
Peter Dunn
Oh, 7% gain and you had it for a 4% gain.
30:11
Damian Dunn
Yeah, let's make sure we're clear on that.
30:17
Peter Dunn
Kristen, we are all experienced investors on this show, I think that's fair to say. Dame and I are much older than you. However, you are very experienced investor and Dame and I certainly are as unfortunate it is to watch the market do what it's done. I don't I just keep in perspective. I don't care. Do you think unfair question, Kristen. Do you think the crypto crowd has the luxury of not caring right now?
30:48
Kristen Ahlenius
I do not. I think for a few different reasons. I think that crypto tends to be invested in my anecdotal experience, younger persons, and I think that partially because the way you can access it. But I think younger people tend to invest in crypto more. And I also think that if you're under 30, give or take, this is maybe the second real longer term down that you've seen in the market. So I think that affects a younger population, both behaviorally and with access to cryptocurrency. I think there's two variables there.
31:28
Peter Dunn
What do you think, Dame?
31:31
Damian Dunn
I think I might disagree with Kristen a little bit here, because if I agree that there's a younger demographic that typically invests into crypto, they also still have time to learn a very valuable lesson in their investing career. And that means just have a plan going forward. You can't go all in one thing, regardless of how sure you are it's going to be a home run, or how much you believe in the reasoning behind the asset existing, you still have to have a plan. And this is a textbook illustration of what can happen when you just go all in too quickly one thing.
32:13
Peter Dunn
Thank you for not giving the Mike Tyson quote about everyone has a plan until they get punched in the mouth. I appreciate you not saying that on air. Kristen, to that point, do you have a percentage of a long term portfolio from an asset allocation standpoint that you think is reasonable for someone to allocate towards speculative investments? Like, what percentage do you think is reasonable?
32:40
Kristen Ahlenius
We're talking just in general?
32:42
Peter Dunn
In general? No, just in general or for you? I don't know. Do you give advice against what you personally do?
32:49
Kristen Ahlenius
A lot? Yeah. You shouldn't be buying a house right now. Maybe like 5%, maybe a little bit more, depending on your risk tolerance. Maybe. There goes my maybe again. Maybe.
33:04
Peter Dunn
Damian. Andrew Dunn. What do you believe?
33:08
Damian Dunn
I think it's actually a little bit higher, but I think it fluctuates based on the overall amount of your income you're able to save towards whatever goal you've got going on as well. So I would normally say no more than 10% in any one individual equity or speculative investment. But if somebody's basically got their retirement sealed up and they've still got some cash to play around with, I think if their risk tolerance can handle it, they might be able to have a little bit more leeway to go in on some of those other things.
33:41
Peter Dunn
I agree. I don't mind a 10% allocation. I think if you start doing sort of the fun. Radio math here. Here's where you get let's take an average young, one of the youngs, they're in their twenty s and thirty s crypto is interesting. They have $10,000, $10,000. So it's my savings, it's my non 401K money. I have $10,000. And so if you take 10% of that to invest, you're putting in $1,000 in a crypto investment. What are the chances that a person who deems that they have $10,000 to invest is taking 1000 of that dollars and investing in crypto and doing something more conservative with the other 90%? Kristen, is that what is happening in practice?
34:35
Kristen Ahlenius
I don't think that's what's happening in practice and I don't think that most people have the gut for risk that they think that they do. Which is why I still pull back to a lower percentage recommendation because I think as a group our risk tolerance is a little elevated and maybe the last twelve months have kind of brought that down a little bit. But as a rule I don't think that your gut for risk is quite as tough as you might think it is.
35:04
Damian Dunn
Everybody has the gut for tolerance when all the risk is on the upside and the money is too easy. It's there. Everybody's making money hand over fist. And why would I only invest $1,000 when I've got ten sitting here that I could do something with? This could potentially pay off our car or pay off our house or set us up for life and then the lights come on and you realize that you didn't have that risk tolerance and now you're in a world of hurt. And if you can get out with the money you put in, fantastic. If you end up with less, hopefully you're just able to chalk that up to a very important lesson learned.
35:42
Peter Dunn
I want to ask a very reductive question that I'm not going to regret. Isn't this just a simple case of if it sounds too good to be true? It is. Because if people are looking for something like crypto to make them wildly wealthy and solve every challenge that's ever happened, maybe that's a bad idea. Is that oversimplistic? That is oversimplistic.
36:11
Kristen Ahlenius
I don't think so. I mean, it's money psychology, right? Like we're emotionally tied and we work hard for our money. And when you have an opportunity to make gains, I think that people are just naturally going to be drawn into that, despite what we know to be true about to your point. The rule of thumb, that like, well, if it sounds too good to be true.
36:32
Peter Dunn
I don't know. I feel like as a parent of a 13 year old, I'm having that conversation on a pretty regular basis. And that sounded rather insulting to everyone I interact with. What I just said. So it's with that we had to break and come back with. Biggest waste of money of the week and the news right here on the Pete the planner show. I don't know, Dame. I mean, it's easy to gloat when the value got cut in half. Maybe I'll feel differently when it's like $120,000 a bitcoin, which is why you.
37:02
Damian Dunn
Need to buy it now.
37:06
Peter Dunn
I do want to note I bought it on the air with Justin. With Justin Costelli at I want to say it was at 10,000, but I only bought like $500 worth or something, right? So, I mean, I'd be up double my money, but I probably would have cashed out at 60 because I'm a genius.
37:27
Damian Dunn
See, that's the game I always play with myself. Is that okay? Yeah. If I would have bought it when a friend of mine encouraged me to when they were under $100 apiece, there's zero chance I would have held onto them to experience the entire run up. Zero chance. Unless I lost my key to my wallet somehow and then found it decades ten Years Later stories.
37:55
Peter Dunn
You guys ready for bomb and news? Dame, do you have some news?
37:58
Damian Dunn
Of course I have some news.
37:59
Peter Dunn
Well, I don't know. I had a hectic week. I didn't have a BOM until about three minutes. Oh, when Kristen was hedging with? Maybes.
38:07
Kristen Ahlenius
Dame, you think that people learn their lesson when it comes to speculative investments?
38:15
Damian Dunn
I think some people certainly do. I think some people learn a very adverse lesson as well by saying, you know what, I'm never doing this again. And they paint themselves into a corner. They learned the tough lesson, they lost a little bit of money, but then they just won't get back into any sort of investing and they're going to sit in cash for a real long time. I talked to advisors that are still in the game frequently and we'll all talk about remember when things went really horrible in the early two thousand s and the amount of people that sat in cash for basically a decade because they were just scared the other shoe was going to drop and it was going to go down to zero. They really did some damage to well, not necessarily damage, but they really put some major roadblocks in front of their retirement plans.
39:14
Damian Dunn
And you want to talk about having to make some major life changes based off of how you are approaching preparing for retirement. If you cannot use the gains in the market, increase in assets, you're talking about probably drastically reducing your lifestyle to make sure that you can fit it into the amount of assets you're able to accumulate based on the returns that you're going to get.
39:41
Peter Dunn
If I may, I have learned my lesson about speculative investing. I really have. I've changed behaviors based on mistakes that I've made. I still make mistakes with speculative investing, but not to the tune of I did when I was day trading in college or dumb day trading as a working adult. But it's with that I offer you the biggest waste of money of the week. All right, in three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is the Balmore and Aston Martin Arc 52 Scotch whiskey. Islay based Balmore and Aston Martin's latest collaboration is their most exclusive yet. Arriving in a spaceship like decanter that combines organic and manmade forms and rests on just two points, the aptly named Arc 52 is a balanced blend of 252 year old whiskeys. One was aged in a sherry butt.
40:48
Peter Dunn
I just want you to know the copy reads, one was aged in a sherry butt B-U-T-T while the other in an American oak X bourbon Hogshead, which was blended together at 42.3% ABV, creating a drink that has notes of vanilla and fruit on the nose and flavors of citrus, tobacco and peat. Not, like me, limited to just 100 bottles worldwide. All right, Kristen, how much do you feel this is being sold for right now in the direct market, the retail market?
41:36
Kristen Ahlenius
I feel like it's either going to be egregious or I'm going to say something egregious and it's not going to be as expensive as I think. Is it less than $1,000?
41:46
Damian Dunn
No.
41:46
Peter Dunn
Damien, do you have a guess?
41:48
Damian Dunn
Yes.
41:49
Peter Dunn
What do you have?
41:50
Damian Dunn
I already saw it, so I know what this is.
41:53
Peter Dunn
$125,000 a bottle.
41:56
Kristen Ahlenius
Oh, my word.
41:57
Peter Dunn
They're making 100 bottles for a gross revenue of $12.5 million on something aged in a hog's head combined with something aged in a butt.
42:15
Kristen Ahlenius
How much is an Aston Martin, Dame?
42:20
Damian Dunn
Well, Aston doesn't put their prices on their website when you configure a car, so you're looking probably between 183 hundred would be my guess.
42:29
Kristen Ahlenius
I'll take the car instead. Sure.
42:31
Peter Dunn
Are we just going to blow past the fact that Dame said Aston, like he's somehow best friends with Aston Martin?
42:38
Damian Dunn
That's how it me. If there's any Aston dealers listening, I'd be happy to do a review of your car if I could just drive it for a week.
42:46
Peter Dunn
When you talk about Mercedes Benz, Dame, do you call it a Mercedes Benz? A Mercedes or a Benz or, like a like what do you say when referencing that brand?
42:58
Damian Dunn
Depends on who I'm talking to and what the context is, because I think I've used all three of those.
43:04
Peter Dunn
What's in the news this week?
43:06
Damian Dunn
Well, since we discussed gas prices, let's go there. The amount of gasoline sold at US stations was down how much, Pete? Down from earlier this year. How much less gas is being sold right now than earlier this year? Tristan? 8.2% from earlier this year, which is down for the 14th consecutive week. We are buying less gas.
43:32
Peter Dunn
Peter, I want Kristen to be on the show. If she's going to guess over my bad guesses.
43:43
Damian Dunn
It'S only a matter of time. It's not uncommon that I have better guesses than you, which is why I think it turned into me asking you to guess, so I didn't show you up.
43:52
Peter Dunn
So people are spending 8%. No, people are buying 8% less gas still spending. I would guess 90% more.
44:03
Damian Dunn
Oh, probably. Yeah. I couldn't be bothered to do that research.
44:07
Peter Dunn
Pete before you go to the next news story, I want to ask a question about relationships. I invited my wife to go to a dinner out to one of our favorite restaurants this evening via calendar invite because it seems practical. It blocks the time out for both of us. It allows her to scout the menu if she wants because I put the details in that. Is that unromantic Kristen to approach my betrothed with a calendar invite to go on a date with her?
44:39
Kristen Ahlenius
I love that because I live and breathe by my Google Calendar and I have parking anxiety. So if you give me the address and tell me this is where we're going to have to park and this is the menu. A one. That's so good.
44:51
Peter Dunn
Dame that's a solid move, right?
44:54
Damian Dunn
Yeah, I really don't see too much wrong with that. Is it romantic? No, probably not. But you could show up with flowers and all of a sudden it's a planned time that you had set aside for Mrs. Planner and you got her some flowers in what I'm assuming is probably going to be like a 24 ounce steak.
45:14
Peter Dunn
Let me put a more pertinent example out there for you, Kristen. I'm going to start with you, Kristen. Let's say I'm on the singles market, in which I'm not. Or let's go a different direction. Let's say you're in the singles market and someone sends you their calendar for you to pick a time to go out with them.
45:33
Damian Dunn
Is that.
45:38
Kristen Ahlenius
I mean, here's the thing. I'm weird, though. I would almost appreciate it. I feel like, is there a Google form? Like, after the date, I can submit my review? So I feel like damian she's talking about Yelp reviewing a date, which does not seem like a good idea. I'm all about the data and the Google Calendar, but like said, I'm weird.
45:56
Peter Dunn
So I feel like damien she's talking about Yelp reviewing a date, which does not seem like a good idea.
46:01
Damian Dunn
Somebody's got a little black book.
46:05
Peter Dunn
Yeah, well, it's data. It's just data.
46:07
Damian Dunn
It's what I'm saying. It's data.
46:10
Peter Dunn
Dame what else is in the news this week?
46:12
Damian Dunn
According to a new study from Harvard Medical School researchers, medicare could have saved $3.6 billion in a single year if it had bought its drugs from Mark Cuban's newly launched pharmacy.
46:25
Peter Dunn
Can I tell you guys something? Friend of the show, Dr. Aaron Albert, who's been on the show a million times back in the day. She former butler, professor, she's an attorney. She was a like she's one of the smartest people I've ever met in my life. It's written a ton of books. She works there. He hired her away. He hired her, Mark Cuban to be one of the main people running this thing, which is the greatest hire ever because she's a genius. We're totally going to have her on the show. But, yeah, that mark Cuban's Cost Plus pharmacy is changing lives.
47:04
Damian Dunn
Yeah. For an example, there are some crazy price discrepancies. When Medicare paid $160 for a 90 day supply of some acid reflux treatment, they could have gotten it for $17 from Cuban's Pharmacy.
47:18
Peter Dunn
Wow. Yeah. I'll be honest. I am fortunate at this stage of my life, I do not have prescription costs. I don't take any medication. I probably need to go to the doctor. I can see how for some people I know, right? This is significant. Even saving $50 a month on prescription is great, but we're talking hundreds in some cases with this new business.
47:44
Damian Dunn
Yeah. So it will be interesting to see how Mr. Cuban continues that. But I'm all in favor of lowering cost because that is seriously something that trips up some people in their retirement days.
47:56
Peter Dunn
Kristen, how will traditional pharmacies try to ruin this for Mark Cuban Cost Plus?
48:05
Kristen Ahlenius
I don't know. And I think right now, it's not even the traditional pharmacy. I think it's people thinking that this is too good to be true. That's kind of what I've seen on social media a little bit, is people just saying that, come on, a billionaire, he couldn't possibly be doing something good for other people. So it might not even need to be traditional pharmacies that ruin it. It could just be ourselves.
48:28
Peter Dunn
Dane what I keep wondering when I see this is but when you get a receipt from Mark Cuban Cost Plus, how is it in relation to a CVS receipt? Is it shorter? Is it longer? Is it a digital receipt?
48:43
Kristen Ahlenius
Couldn't be longer.
48:44
Damian Dunn
There's no way it could be longer. Plus, unless Mr. Cuban is going to start selling some other things through Pharmacy Plus, I don't know how it could be. What are my coupons going to go for?
48:56
Peter Dunn
One last story, dame pete, you and.
48:58
Damian Dunn
I discussed on a show a few months ago that there might be some changes to retirement coming. Well, we might get to start waiting longer to empty retirement accounts and face fewer restrictions for emergency withdrawals under a bill advanced unanimously Wednesday by the Senate Finance Committee. It was already passed by the House on a 414 to five vote. But there's all sorts of changes RMD, age, emergency withdrawals, who can contribute to mandatory enrollment and all sorts of stuff. So lots of changes potentially coming, and we will cover it in detail on this very show.
49:33
Peter Dunn
And@yourmoneyline.com Kristen, thanks for joining us this week. It was good to see you again. You are a fan favorite. Dame, you were here, too. Send in everyone good vibes, because good vibes are all that's in the budget. I'm Pete the Planner, and this is the Pete the Planner radio program. All right, fan favorite Kristen ODS out.
49:57
Damian Dunn
With a really interesting comment sending an invite to a significant other is a good way of showing off to their coworkers, and I'm all for it.
50:06
Peter Dunn
I do feel like it's funny. Loves one of our coworkers a couple of weeks ago is like, yeah, I'm going on a date with my wife tonight. And I was like, oh, man. It did feel like you're going on a date. Even the married folks are like, oh, I would like to go on a date. Yeah.
50:24
Damian Dunn
Had you already agreed to this dinner? Let's do dinner Friday. And then you sent her an invite to reserve the time and give some extra information how'd the logistics of that work.
50:37
Peter Dunn
So I talked her into spending time with me, and she almost acquiesced. I went into another room, and within 7 seconds, I had reservations and sent her a calendar invite. And I believe she said, I don't know if I consented to this date. And I said, accept the invite. And she said, I might put it as a maybe. And I said, I'm going. Whether you go or not is up to you. And I have not talked to her in two weeks.
51:12
Damian Dunn
Are you taking separate cars?
51:15
Peter Dunn
Maybe just to save gas in mine.
51:23
Damian Dunn
Boy.
51:24
Peter Dunn
Okay, bye. I got to go. Kristen, I hope you have a really good weekend. I hope you put the doors on your cabinets.
51:35
Kristen Ahlenius
Got to paint them.
51:37
Peter Dunn
Yeah, after you paint them. Dame, I think you should drive over to Kristen's and painter cabinets.
51:43
Kristen Ahlenius
There you go.
51:46
Damian Dunn
Can I submit that mileage for reimbursement?
51:48
Peter Dunn
And that's all we have time for this week. All right, everybody stay getting money. Bye.
