00:18
Peter Dunn
Good day. Good day. Good day, everyone. It's Peter Dunn. Pete the planner host of the Pete the Planner show. Happy New Year of the I don't know. Damian Dunn joins me. Damian, you know, like in the was it like the Chinese calendar there's, like, the year of the whatever. What is the year of the Tiger? Ger, my friend, welcome to the show. Gur, back to you, oh, year of the Tiger. Who is your favorite tiger?
00:49
Damian Dunn
Tony.
00:50
Peter Dunn
I go with Montecore. I don't know. I think it's one of Sigfried and Roy's old tigers. But you know what? Now that I say that, I feel like it's the one that mauled Roy, so I feel bad.
01:01
Damian Dunn
Was there a tiger in ThunderCats?
01:04
Peter Dunn
Tigro.
01:06
Damian Dunn
All right, maybe.
01:08
Peter Dunn
Anyway, hi, everybody. This is a financial show. Hope you had a good holiday. Dame and I took a week off to spend times with our family, throw another log on the fire, so to speak. So to speak. I mean, literally, I don't know what the euphemism throwing another log on the fire would represent, but alas, here we are. Damian, do you have a good holiday?
01:27
Damian Dunn
I did. It was very quiet, didn't have to travel anywhere and didn't have to shovel out any blizzards.
01:35
Peter Dunn
Jeremy. Hello, our friend. Happy New Year to you. Good to be with you. So, Dame, I'd like to announce all sorts of, like, oh, we've got fun things for the show this year. I don't know. We're going to do our best. It could be fun. It could be bad. Today is going to be a good show, though. I can guarantee today is going to be a good show. No doubt about that. Do you have that same feeling?
01:56
Damian Dunn
I do. I think we're poised to start very strong.
02:00
Peter Dunn
All right. So, Dame, I added a new ticker to the bottom of the visuals for the people on the podcast. You don't get the visuals. You like it?
02:08
Damian Dunn
I do.
02:09
Peter Dunn
There we go. Okay, Dame, here's what's on the show today. Here's what we're doing. We are doing a market recap. All the different markets, crypto, commodities, equities, bonds, all that. We're going to talk about what happened in 2021, which of course means you and I get to review our big stock pick adventure for 2021. Who won? Who lost? It's a mixed bag, everybody. And then we make our picks for 2022. We also answer a question from a person that said, enough already. I'm saving a lot of money. Can I stop and enjoy life? I kind of like those. So we'll do that, of course, the biggest waste of money of the week in the news. All right, Dame, you ready to go?
02:56
Damian Dunn
Let's do this.
02:58
Peter Dunn
Should I check text during the show?
03:03
Damian Dunn
That's what an amateur would do.
03:04
Peter Dunn
I know. That's what I just tried to do. It's an important text, too. That's the problem. It's always the problem.
03:09
Damian Dunn
You want to read it to everybody no. Okay.
03:12
Peter Dunn
Dame here. We also noted that for some reason, even though I'm hardwired into the Internet, my connection is going to be weird today. So everybody sorry. And what's with that? I said it in a way that made it seem like it's other people's fault. Let's get started. Okay, here we go. Starting the show in three, two 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. And when you do that, amazing things may happen. What? What? I'm not sure we could answer your question on the air, and we're going to do that here in the third segment. By we, I mean myself and Damian Dunn, no relation whatsoever, vice president of advice at your Moneyline and hey, Money. Hello, Dame.
04:09
Damian Dunn
Hello, Pete.
04:10
Peter Dunn
Dame, this week, you and I are talking about the 2021 market review, our predictions for 2022, and an email question from a person who said, enough already. Can I stop saving money? There you go. So, Dame, you're good to go for the year?
04:29
Damian Dunn
I think so. I think we took that little bit of time off. We're refreshed, ready to go.
04:35
Peter Dunn
All right, here we go. Dame, it's the year in review, 2021. How did the market go? Let's begin with the top sectors of 2021. You've seen the chart. In fact, you've sent me the chart. Do you know what the top asset class was in 2021?
05:01
Damian Dunn
Crypto.
05:02
Peter Dunn
It was in fact, more specifically Bitcoin. Now, if we're being fair here, I don't think it's taking into account, like, Dogecoin and all of those sorts of things. I think it went with the major crypto, which is Bitcoin. Bitcoin was the top performing asset class of 2021 at 59.8%. This does not surprise you?
05:27
Damian Dunn
No, not at all. I mean, it seemed like you couldn't turn anywhere without having some story about crypto put in your face. And on top of that, you had a lot of people who were just finally through their hands in the air and said, all right, I got to get in on this and figure it out for myself. And they did, and they participated. And it continued to drive the price higher and higher.
05:49
Peter Dunn
3% lower. Just under 3% lower. At 56.4% was crude oil. Crude oil. Crude oil. And I will just make this note, and I will probably make it a few times during today's show, I don't invest in oil, specifically crude oil. I don't have investments in crude oil. I also don't have investments in Bitcoin, which is to suggest just because it might get good returns or it's a speculative thing, it's just not for me. That's okay. This show isn't necessarily for you to adopt my investing style. It's to come up with your own. So, Dame, crude oil did fine. The S and P 500 commodities index did 37% and the Dow Jones Real Estate index did 35%. And now we are on to the stuff everyone cares about. Actually, that's not true because people care about the crypto. S and P 500 was up 26.9% last year.
06:49
Peter Dunn
Dame wow.
06:51
Damian Dunn
Yeah. I'd like to say that's not normal, but if were to look at the previous ten years or so of returns, it's not out of line with what we've seen over that course of time. Good year to be indexes.
07:09
Peter Dunn
Yeah. Dame I like the S and P 500. It's such a weird statement. It's actually a meaningless statement. What I'm saying is I am comfortable with the returns that the S and P 500 consistently provides. That's what I'm saying.
07:27
Damian Dunn
Yeah. You don't have to try and pick and choose winners and losers as you're going through. You are making a bet on these 500 stocks, the US. Market at large, and if you can be consistent enough over or the economy can be consistent enough over that time period, you're going to be just fine. Will the S and P 500 struggle in periods of economic turmoil? Yeah, well, we saw that last year during the very brief I guess that wasn't last year, it was two years ago that we had the very brief drawdown. But the S and P 500 as a whole is used as a core holding in many people's portfolios for a reason. It's consistent and has very nice returns.
08:11
Peter Dunn
I have been in the financial business for over 20 years. I am comfortable averaging 8% long term on my entire portfolio. I am now going to read you the annual returns for the S and P 500 starting in the year 2011, please. Okay.
08:27
Damian Dunn
Yes.
08:27
Peter Dunn
2011, it returned 2.1%. 2012, 15.89 in 2013. The S and P 500 gained over 32% in 2014, over 13% in 2015, 1% in 2016, eleven point 96%. 2017, nearly 22%. 2018, it was down just under 5%. So that's the first down year. We've discussed. 2019, a robust 30%. 2020, the beginning of a global pandemic, which is now in its third season, 16%. And then 2021, nearly 27%. This works out to a five year annual average return of 17.5% in a ten year average return of 16%. How long does that keep going?
09:29
Damian Dunn
Forever. Pete we're making the call today.
09:33
Peter Dunn
This does not constitute financial advice. Please consult your financial advisor.
09:39
Damian Dunn
We're going to have periods of up and down, and if you're in the financial industry and you listen to the talking heads and the people who are in the know, they all pretty much universally say that stocks are going to slow down drastically in the next I don't know, whatever time period you put on it. But these are also the same people that try and pick winners and losers every year, and they fail miserably at that, too. So how long is this going to continue? I don't know. But this also really builds the case for a well balanced and diversified portfolio.
10:10
Peter Dunn
I have to note that in the end of 1999 the market was averaging 19% on a ten year look, okay, which is higher than what it is now. But then the following years minus nine minus eleven -21 now throw September 11 in the mix and two wars and some other things and you've got some complexity there but you get my point. Now the other thing you and I of course were nerding out over before went on air today is the 60 40 portfolio and how it's performed. 60 40 portfolio is 60% S and P 540% bond index and Dame, the 60 40 portfolio did 15.43% last year. 15% and you're 40% in bonds what.
11:09
Damian Dunn
Which were underwater last year.
11:11
Peter Dunn
Yeah.
11:11
Damian Dunn
So you took a loss on 40% of your portfolio and still made double what your target return could reasonably be in most years. So 60 40 Portfolio, even though folks may think it's very boring and bland and doesn't give you, I don't know, whatever they want to say, but 60 40 Portfolio has proven long term to be a very good strategy to invest.
11:40
Peter Dunn
Your money, I think, especially if someone approaches retirement where they need to take down the volatility a little bit. The ten year average return on the 60 40 portfolio right now is ten point 89%. Give that to a pre retiree, give that to a retiree on a consistent basis and I think you'll have some smiley faces, even though the smiling faces argue was covering dentures dame on a 25 year number 8% on that 60 40 portfolio. Here's my big bold assertion that can get people angry. That's not meant to make people angry. It's just how I feel with the 60 40 portfolio doing that and stocks averaging 17% over the last five years, 16% over the last ten years. This is specifically why I do not involve myself in cryptocurrency. There's no point, what's it matter? You don't need it. And so I'd rather have something I can rely on consistently as opposed to that.
12:43
Damian Dunn
Wow, those are fighting words, Pete.
12:45
Peter Dunn
They're not. At some point my hot takes just cools down. But that's how I feel. Coming up after the break, we will reveal who won the stock pick challenge of 2021 mixed bag and who will win 2022. We're going to make our picks next on the Pete the Planner Show. I'm Pete the Planner. There you go, Larry.
13:05
Damian Dunn
One down.
13:10
Peter Dunn
So you look at it that way, where 1999, were at those high levels and then you look at those three nasty years after the fact. But here's what our market hasn't had to deal with for 20 years, three down years in a row. So when that does happen, and yes, that will happen, although I feel like the Fed is so much more active today that they will pump bonds out into the marketplace and try to lift up the economy. I don't know how the modern investor I mean, the 2022 investor could handle three down years, but it's common.
13:52
Damian Dunn
At some point, I think that will happen. But as we've seen, the Fed become more active and the up years become so much higher than what we would have traditionally expected, I think that means the down years are going to be that much worse as well.
14:10
Peter Dunn
I can't wait for you to hit mute and clear your throat. It was so great because I was getting grossed out myself. Actually. We don't have to do this next part on air. We can do it here on the podcast and the live stream. I want to finish up some other returns from last year. The Russell 2000, which is small cap stocks, was up 13%. The US dollar index was up 6%. US. Treasuries were down two and a half percent. Gold was down 3.6%. Silver was down 11.7%. You know what stinks about this chart is the Nasdaq is not on here. Like, why put this chart together and not list the Nasdaq? You know what I mean?
14:55
Damian Dunn
We can write a very strongly worded email to the cruise man.
14:59
Peter Dunn
Should we say where we got this from?
15:02
Damian Dunn
Overall, they've got really cool charts.
15:04
Peter Dunn
I agree. VisualCapitalist.com. VisualCapitalist.com. Well, it'd better if you got the Nasdaq involved with their VisualCapitalist.com. Thanks for your help. Okay, Damie ready to reveal our stock results from last year and to make our picks for this year. I'm nervous. I got to write them down because I'm going to forget.
15:22
Damian Dunn
You know what? That's a fair point. I still haven't picked my one.
15:27
Peter Dunn
You're up or you're down?
15:29
Damian Dunn
Yes.
15:31
Peter Dunn
All right, so we're doing S and P 500 prediction, your stock of the year and your loser of the year. Jordan says on the live stream, happy New year of avoiding Speedway gas station breakfast sandwiches.
15:50
Damian Dunn
Had a boy. Jordan.
15:51
Peter Dunn
Yeah. Maybe you can rebrand as the audio capitalist skeptical Economist 2.0. Troy, that's very funny. For longtime listeners, they'll know that at one point I had the show named The Skeptical Economist. I don't know if I actually went to the air as The Skeptical Economist. I thought about it, but it's an embarrassing thought that I wish I had never shared. Okay, let's start the show. You ready?
16:16
Damian Dunn
Yeah.
16:17
Peter Dunn
Three, two, one. Back on the Pete the Planner show, Dame, it's that time of year where we reveal the 2021 stock picks, winners and losers. You and I made fun predictions about this time last year of which stock we thought would do well. We talked about what we thought the S and P 500 would do, and it's just important to note I need everyone to know that this is not investment advice. This is a novelty. Damon and I are competing against each other. Do not, under any circumstance act on what we're about to say. Damon, do you agree with that?
17:01
Damian Dunn
Yes. This is a fun little light hearted competition that Pete and I have to prove that one of us is better than the other.
17:09
Peter Dunn
And in the live stream, if you want to put your picks in the chat, feel free to you can say Stock of the Year, loser of the Year, or you can give your S and P 500 predictions. So, Dame, without any further ado, because no one likes further ado, let's review what your stock pick of the year was. For 2021, you chose what stock?
17:35
Damian Dunn
Thor. Thor.
17:37
Peter Dunn
Tell us about Thor.
17:38
Damian Dunn
Thor is a recreational vehicle manufacturer located indiana, and they had a very nice 2020, and I thought that was poised to continue on into 2021, and they were very strong. About halfway into 2021, I believe Pete sent me a return with some crying emojis at one point, knowing that he was just in trouble with his pick compared to mine, and it cooled off tremendously towards the end of the year, but still finished positive.
18:09
Peter Dunn
All right, dame. Well, it did finish positive, and it finished up eleven point 59%. In any year, I would take eleven point 59%. Kudos to you.
18:23
Damian Dunn
Thank you.
18:24
Peter Dunn
I chose a little outfit out of Atlanta, Delta Airlines. I don't know if you've heard of them. I believe they love to fly, and it shows. Maybe. Is that united?
18:37
Damian Dunn
It certainly wasn't make money.
18:39
Peter Dunn
Oh, boy. They were down 2.81%. I lost very badly. My idea was that weren't going to go through a third year of a global pandemic, that two is enough, that after season two, we'd be done. Turns out we got renewed for a third season of a global pandemic, and we figured that out in the fall and did not help the airlines, and so I lost. Dame is smarter than me as it relates to that stock pick. Now, however, our S and P 500 picks are a little different. Dame, what did you choose for the S and P 500?
19:23
Damian Dunn
Are we going with my refresh pick? I think didn't we have a period where we could change our picks midway through the year?
19:30
Peter Dunn
Tell us both.
19:31
Damian Dunn
I feel like my first pick was eleven, somewhere around there, and twelve. And then I bumped it up because I was feeling pretty bullish and went to all the way to 14 or 15 somewhere in that neighborhood.
19:43
Peter Dunn
I started the year by saying 22% to 23%. The S and P 500 finished at 26.89%. I win, and I stuck with my pick the entire year. I win. However, now it is time to reveal our picks for 2022. This year, we are adding a loser section. And so, Dame, do you want to begin with your winner pick?
20:14
Damian Dunn
Boy, I almost feel guilty doing this. I am going with, out of a number of choices, berkshire Hathaway.
20:29
Peter Dunn
Really?
20:30
Damian Dunn
I am.
20:32
Peter Dunn
Really?
20:32
Damian Dunn
Yes. That may inform you a little bit on what I think the SP 500 is going to do this year, but I think Berkshire is poised to perform well in up and down markets.
20:43
Peter Dunn
Okay, my winner of the year oh, man, I'm on the fence. Jeremy, our pilot friend, wants me to double down and say Delta again, and I kind of want to. However, I'm going cushman Wakefield. Commercial real estate. Cushman and Wakefield.
21:07
Damian Dunn
Okay.
21:08
Peter Dunn
So that's the direction I'm going. Note it, everyone. Now, Dame, let's choose your loser of the year for 2022. And it can't be me. It has to be a publicly traded company.
21:21
Damian Dunn
Full disclosure, if you would have gone Delta for your winner, I was going to go Delta for the loser.
21:26
Peter Dunn
I knew that was going to happen, so I didn't do it.
21:28
Damian Dunn
All right, loser for the year. I am going on a purely emotional play and saying Twitter is going to be a loser this year.
21:38
Peter Dunn
Okay, well, you know what? I have to say my pick is not that different, and I am going to disclose actually, I should disclose a couple of things because I like to keep it on the up and up. I do own shares of Cushman Wakefield, and I want to note that my loser pick, I also own shares of them, and I am not getting out of the position. Fair, Amazon. That's a flyer. Unlike the Delta pick, which is also a flyer. This is a risky pick, and I understand that, but it had a terrible 2021, an amazing 2020. I don't know. Something tells me it's not going to be good in 2022. We'll see.
22:27
Damian Dunn
I don't know.
22:29
Peter Dunn
Neither do I. That's why we're idiots. Okay, now, your S and P 500 pick, what's it going to be?
22:38
Damian Dunn
We're talking full year, right?
22:39
Peter Dunn
Not just full year.
22:40
Damian Dunn
Okay.
22:40
Peter Dunn
Yes. So January 3, first day of trading.
22:44
Damian Dunn
On S and P 500 will close this year up 4%.
22:53
Peter Dunn
Okay. We have a different answer. I believe the S and P 500 will close up 7% in this year. So we are on the same page. We're just on a different place on the page.
23:12
Damian Dunn
Yeah.
23:14
Peter Dunn
I hope I'm wrong.
23:16
Damian Dunn
Same.
23:17
Peter Dunn
So I would say, actually, not that we're doing this, but for what it's worth, it's going to be 7% or less. Right. And by less, you could see that little hyphen in front of your return this year that people don't like to see.
23:37
Damian Dunn
I very nearly went that way.
23:39
Peter Dunn
I know.
23:40
Damian Dunn
But I couldn't bring myself to put that juju out there.
23:43
Peter Dunn
It's going to happen at some point. And I think this giant bull market we've been in, it's got to end. I'm not a sky is falling guy. I'm not worried. That's the thing. I'm not worried when we go to a bear market, because the longer you have done this and the longer you've been an adult investing, the less you care about a few down years, because ultimately, had you bailed in 1999, at the beginning of three down years, you would have regrets. Yeah.
24:19
Damian Dunn
And if you keep investing during those down years, you're going to come out much further ahead in the long run because you're buying the same stuff that you liked before at a cheaper price. So when it turns around, you're going to be in much better shape.
24:31
Peter Dunn
Of course, we do a live stream of our show, and we asked people to put their picks in the chat. Daniel Listener says s and P 500, up 12%. Stock of the year at and T. Interesting. And then loser of the year at and T as soon as I put money into it. That's funny. And that's, oddly enough, how investing feels like it works most of the time. All right, Dame, so now that you've heard my pick and I've heard your pick, where's your confidence level on stock of the year?
25:06
Damian Dunn
I'm feeling good. There were a couple that I kicked around. Maybe we should discuss those off the air about the ones that I considered and the ones you considered the winner of the year, but I'm feeling pretty good. That Brookshire can pull.
25:20
Peter Dunn
All right.
25:20
Damian Dunn
I feel good.
25:21
Peter Dunn
I'm beating you on that one. How about loser of the year? How good do you feel compared to mine?
25:26
Damian Dunn
I won't be upset if I lose that one, but if I win that one, I will have a slight guilty feeling of happiness.
25:35
Peter Dunn
All right, coming up after the break, your questions. Can you quit investing? That's next. I'm Pete the planner. We need to write down our picks so you don't try to change them midway here.
25:48
Damian Dunn
Yeah, that's probably fair.
25:50
Peter Dunn
I picked Amazon and Cushion. Wakefield, what do you pick? Pick?
25:54
Damian Dunn
You pick Berkshire habitshire and Twitter.
25:59
Peter Dunn
Man. That's the great tip off. When you were like Berkshire Hathaway, I was like, okay, well, now we know where he's going.
26:08
Damian Dunn
Yeah.
26:09
Peter Dunn
All right.
26:10
Damian Dunn
I picked a mutual fund for my pick this year. Essentially.
26:14
Peter Dunn
I just wanted to note and I don't need credit for this my texts are blowing up. My slack is blowing up. I've got slacks that say I have emails, and I'm not checking any of them because I care about you all.
26:28
Damian Dunn
Mute all those notifications, Pete.
26:30
Peter Dunn
Oh, I got to stop now. My text chain with my guys is, like, 17 deep.
26:35
Damian Dunn
How come I'm not getting in those texts? I'm not one of the guys.
26:38
Peter Dunn
No, you can't be on this chain at this point. Anyway, let me pull up the question. I've not really read it. I kind of read it. And we're going to do it new Year. Still me.
26:54
Damian Dunn
They must wait a second.
26:57
Peter Dunn
Where is it? Oh, she put a bunch of them in there.
27:00
Damian Dunn
Just two.
27:06
Peter Dunn
Okay, got it. Here we go. In three, two, one. Back on the Pete the Planner show. Dame, every once in a while, people email us, and they want answers. This week, we got a question from someone who needs answers. His name is Matthew. Dear pete. Oh, actually, it says Ola Pete. Edom, that's you. I have written in a few times and always enjoy hearing Y'all's opinion. He's got to be from the south, right? Yeah. I don't believe I have ever heard you talk about what I'm going to ask, so I figured you may enjoy the question. My wife and I are 27 with a net worth of 215,000 American dollars. They've probably really enjoyed the last ten years of the S and P 500. We have a duplex that cash flows enough to pay for our current living expenses. Really?
28:00
Damian Dunn
I know.
28:02
Peter Dunn
Well, can we pause here for a second?
28:05
Damian Dunn
Yeah.
28:06
Peter Dunn
Okay. For those that don't know, a duplex is a home with two front doors. One of the front doors is yours, generally speaking, and the other one is someone else. What I can't determine here yet, because I have to read further, is they.
28:24
Damian Dunn
Have living expenses in there.
28:26
Peter Dunn
No, what I'm saying is, do they live in one of the doors or do they live somewhere else? And then they've got two doors that other people use?
28:35
Damian Dunn
I think they have two doors that other people use.
28:37
Peter Dunn
Okay, that changes my surprise here, because to live in one of the doors and then have someone else to live in the other door, and the cash flow, to be so aggressive that cash flow not only pays the mortgage for the whole thing, but then covers all of it, has to be two separate doors. I continue. Does everyone know what I'm talking about there, or did I just go crazy? I'm still making sense, right?
29:02
Damian Dunn
We'll put it in the notes.
29:04
Peter Dunn
Okay. We have a duplex. That cash flow is enough to pay for our current living expenses. $25,000 in cash for personal real estate emergencies. So I got to think that's separate than the way they said that. 170,000 invested in the market, 86,000 in traditional, 52K in Roth, and 32,000 non qualified. My question is, at what point can my wife and I slow down on investing and either work less or simply splurge a bit more? We make around $105,000 per year, and we are able to live well on $3,500 per month because we're in a low cost state. I can tell by the Y'all. Was that rude? What I just say? Felt rude.
29:49
Damian Dunn
I said it because it was.
29:51
Peter Dunn
I'm sorry. I say you all for what it's worth occasionally and don't have any consumer debt. I know how compounding works. So my goal has always been to invest more now and let it grow for the future. With such a long time horizon, there are many life factors that can't be taken into account just yet. But just say we never invested another dime. Are we crazy? Citing our goal is to max out Roth arrays until we retire. Just curious on your thoughts, Matthew. Okay. What do you think? You're the professional here. I don't know what I am, but you're professional. What do you say?
30:28
Damian Dunn
If you go strictly on the math?
30:30
Peter Dunn
Okay.
30:31
Damian Dunn
And if you've got a calculator close by, pete, no. Yes. No.
30:36
Peter Dunn
Yeah, I do. Am I supposed to do math?
30:38
Damian Dunn
You can if you want. If not, we'll ballpark this.
30:41
Peter Dunn
I'm reading my text now.
30:43
Damian Dunn
Good. 170,000 invested in the market. They're 27. They've got roughly, what, four?
30:48
Peter Dunn
Doublings reasonable 346. 62.7 million.
30:58
Damian Dunn
Two. Seven.
30:59
Peter Dunn
Okay.
31:00
Damian Dunn
Not a bad sum. Not a bad sum. But they're also going to max out their Roth IRAs over the next however many years they choose to do that. If we call it 40, that's going to add up to a significant amount of money. All right, so we've got a nice pool of cash sitting there. We also know they've got a Duplex that I'm assuming they're going to hold onto that's cash flowing a fair amount. They're going to have Social Security. Even people who say, we don't know what Social Security is going to do, there's going to be some Social Security benefit, we just don't know how much it's going to be.
31:33
Peter Dunn
Sure.
31:35
Damian Dunn
And if they can truly live on $3,500 a month, even if we take inflation into account, I think there's a chance they could pull it off. If they continue to contribute to the Roth, I would go the extra step of making sure that they're hitting at least the match in the 401K. But the math says pure numbers. If $3,500 a month is accurate for the rest of their lives, they could pull this off.
32:03
Peter Dunn
I agree. I just have to make a couple of notes here, and the first one is condescending. Or it sounds condescending, but it's not meant to be. It's about experience. At 27 years old, a lot of life hasn't happened to you yet. I mean, you arguably have had some ups and downs through childhood and adolescence and into young adulthood. And I'm not to suggest that what you've been through has been easy. I'm just saying there's a lot of adult life left to go. And what I know about adult life, even for the well planned, is it can get real detoured real fast. And so if a person chooses to increase their lifestyle and invest less than they normally are in a vacuum, cool. Awesome. The math works. Dame, you just said the math probably works. But I would note that the decisions can't at all feel permanent, because if they do, or if you even go into it like, whoa, yeah, we did it almost had to be as temporary of a decision to pull back on investing as the decision to invest so aggressively had also been.
33:17
Peter Dunn
Because otherwise, when life does happen, you're going to be in trouble. So it started off as condescending and ended up being rather wise. But I will say this. At some point, maybe you have a family, maybe one person wants to stay home, maybe you want to travel around. The country out of a van and sleep on an air mattress? I don't know. I don't. But if you do, flexibility is what allows that to happen. I have no problem with them splurging. And not to get weird here, dame I think the connotation of splurge for a 27 year old in this position and the connotation of someone maybe 20 years their senior is completely different. So I'm focusing on the word splurge. What does that really mean and how will that impact the finances?
34:10
Damian Dunn
That's a question they're going to have to answer for themselves if they can maintain this lifestyle. What you said is increase your lifestyle a little bit. Well, that's where things start to get a little hairy. They've got to keep that in check. But if they can maintain a relatively conservative lifestyle, $3,500 a month, they've got a shot at pulling this off. But if they do have extra money that they're not consuming in their lifestyle, what do they do with it? Do they buy more duplexes? Do they start putting it into a non qualified account and use that for sky's the limit? At that point, you can have some crazy uses and crazy goals on that non qualified account, whether you're going to give a bunch of it away charitably or you're going to save it for any day or you want. To spend it all once every five years on something nuts.
35:00
Damian Dunn
As long as it's not something that you are using in your daily lifestyle inflating the dollars that you need to live month to month. Man just having a fund set aside or a charitable fund, whatever you want to use it for, would be really appealing to me. And if things go sideways in the markets and that nest egg that you've got sitting there doesn't grow as fast as you thought, you've still got some other money set aside that could be redirected to your retirement later on.
35:30
Peter Dunn
I will note that Live Stream Viewer listener Jeremy weighs in with you all know they're going to have to spend more as they get older, especially once the kids come. Dame maybe next week we talk about how expensive kids are. Mrs. Planner and I had our year end meeting last week. I love it. My favorite. We had a great time. We gave each other a hug afterwards. It was nice. We were feeling good, not that good. And I thought man most of our money goes to our kids activities, like in terms of discretionary spending. So I'll note 3500 works for now, it won't work for now in perpetuity. And I would also note that even if they increase their lifestyle by $1,000, $1,100, you're increasing it by 33%. That's a lot. And you can get a lot done by spending an additional $1,000. It's those habits you form that I guess, really are the difference.
36:34
Peter Dunn
All right. Dame here's what we're going to do. The very first Guam of the week of 2022 is next, along with current events. I'm excited and I'm starting the year in a positive note. This week's Guam is the best use of money of the week. You're on the Pete the Planner show. You're on the Pizza Planner show. I'm Pedro the planner. I have three people in my life who've called me Pedro. Actually, four on a consistent basis. Okay. My friend Don. My friend Paul. My grandfather, Grandpa Dunn.
37:11
Damian Dunn
Really?
37:11
Peter Dunn
And Ted. Those four people call me Pedro.
37:17
Damian Dunn
Interesting. I've heard Paul do it.
37:19
Peter Dunn
Yeah. But Sarah and I pardon me, Mrs. Planner. And I over the holiday. Ted calls me Pedro all the time, and I just said, you know, the other main person that calls me Pedro was my grandpa. That's interesting because nice. Ted met my grandpa. My grandpa passed away in 2014. Ted was born in 2012, so he didn't really know him.
37:44
Damian Dunn
Yeah, that's nice.
37:45
Peter Dunn
He's nice. That's sort of a nice thing. I'm not going to tell him that, though.
37:48
Damian Dunn
No.
37:50
Peter Dunn
Are you ready for Guam?
37:52
Damian Dunn
Yeah. I'm really curious to see what the best use of money that I could be spending some cash on this week is.
37:58
Peter Dunn
We talked about it yesterday, actually, in your employee review. Only one of us cried. And I'll note I didn't cry for that long.
38:08
Damian Dunn
No, I mean, you got to let them down easy sometimes.
38:14
Peter Dunn
All right. I know. I'm going to be doing it for the next 2 hours after this here show, answering all these texts and emails and slacks.
38:25
Damian Dunn
You're just so popular.
38:27
Peter Dunn
I don't know. I'm wearing a quarter zip today. Quarter zip sweater out of respect to Chad, our coworker king of the quarter zip and the Manning cast, too.
38:41
Damian Dunn
I thought we gave somebody else that moniker of king of the quarters.
38:46
Peter Dunn
We did.
38:47
Damian Dunn
Maybe not. I don't know.
38:49
Peter Dunn
I don't know. All right, you ready to go?
38:52
Damian Dunn
Yes.
38:53
Peter Dunn
This week's biggest waste of money of the week right here on the Pete the Planner show is, you know, every once in a while I don't do biggest waste of money. This week's biggest waste of money of the week right here on the Pizza Planner show is, you know, every once in a while I don't do biggest waste of money. I do best use of money. And today I'm going to do that. This week's biggest waste of money of the week is the solo stove bonfire. There's no better way to create good moments and lasting memories around a fire. The solo stove bonfire pushes the limits of airflow efficiency and minimalist design, reinventing the backyard experience so you can get outside and have a roaring smokeless fire in minutes. Solostoe's signature airflow design trademarked creates a super efficient burn that is mesmerizing to watch. Rising hot air and the absence of oxygen created by the combustion pulls air through the bottom vent holes.
39:44
Peter Dunn
This airflow fuels the fire as its base while also providing fuel for the secondary burn to minimize smoke. The unit is made of entirely of 304 stainless steel and at just under 20 pounds, the solo stove bonfire is easy to transport for an perfect evening in the backyard, at the campground or at the beach. Dame. I got one of these for Christmas. And boy, oh, boy. It's amazing. It's 279 American dollars. And for my father in law who spent that money on me. Thanks, Jim. Because it is incredible. I spent most of my break on our side porch area. It's a covered porch, but it's not screened in or anything. I don't know what you call that, but it is covered and it's got a ceiling fan, so it was like nothing degrees out. I was ripping through firewood and then I had the updraft of the fan going on.
40:38
Peter Dunn
So I like, superheated. Our porch now. Is the white paint of our porch a little sootier than normal? Yeah, but I'll deal with that in the spring. Damien, I got lost in the visuals of this beautiful fire. It is incredible.
40:55
Damian Dunn
Where do you buy your firewood in northern Indianapolis?
40:59
Peter Dunn
I was hoping you wouldn't ask because it's complicated. Here's why it's complicated. I've had a gas fireplace my entire life from a kid as a homeowner, so I don't typically build fars. Like, I don't know what to do, so I'm just going to like Lowe's or Home Depot. I bought some woods from Menards. I started looking online at Bespoke Firewood and I know, like, a real human goes out and just fells a tree. I have to note, since we're talking about this, one of my favorite people in the world well, actually two favorite people in the world. Former co host of the show Chip, my good friend Chip, who is blowing up my text message right now, and his father, Howard. His dad is one of the world's foremost amateur experts on firewood. He was a pilot, like a military pilot. And he would drive to go fly a mission in his Porsche and on the way, pull his chainsaw out of the boot of the Porsche and fell a tree, fill the little trunk space with firewood.
42:15
Peter Dunn
And so when he'd get done with his mission, he'd have firewood to go put the wildest story in the world. But I just love that there's someone who loves free hot firewood as much as Howard Maxwell.
42:28
Damian Dunn
I need to know more.
42:29
Peter Dunn
Oh, I have a good story for you. Yeah, Dane, what's in the news this week?
42:34
Damian Dunn
Younger Americans are paying a lot more in banking fees than older generations. According to a survey from bank rate Gen Z, adult checking account holders ages 18 to 25 pay an average of pete, this is guessing game. How much do folks ages 18 to 25 pay per month in routine service charges in their banking account? ATM and overdraft fees. Sorry? The service charges, ATM fees and overdraft fees. Millennials ages 26.
43:06
Peter Dunn
Wait, you were including overdraft fees in that?
43:09
Damian Dunn
Yeah.
43:10
Peter Dunn
You didn't give me that information.
43:12
Damian Dunn
Okay.
43:12
Peter Dunn
You said routine fees.
43:14
Damian Dunn
Routine. Okay, so maybe I didn't read beyond the first comma. I'm sorry.
43:17
Peter Dunn
Well, who are you? Me now?
43:19
Damian Dunn
Yeah. Okay. Same question, same categories. Ages 26 to 40, $116. Right on the money.
43:28
Peter Dunn
Wow. Is this the first time in the history of this program I've ever been right?
43:32
Damian Dunn
Might have been.
43:34
Peter Dunn
Market calendars, everybody.
43:36
Damian Dunn
Gen Xers. That's ages 42 to 57, by the way. How much do they pay?
43:46
Peter Dunn
Oh, I knew it was.
43:47
Damian Dunn
And baby boomers, 58 to 76.
43:51
Peter Dunn
Nothing.
43:51
Damian Dunn
Two.
43:52
Peter Dunn
Yeah. This is the best year ever. Let's end the program.
43:56
Damian Dunn
Younger consumers are also more likely to pay monthly fees, with 47% of Gen Z adults saying they fork over money every month and 35% of millennials saying the same. Meanwhile, only 19% of Gen X and 15% of baby boomer account holders pay monthly fees. The average overdraft fee for checking accounts is. A record high. A record high.
44:22
Peter Dunn
I'm pretty good at this. I will say this weird admission. And this is where I have weird things in my life. I don't care about bank fees. Everyone's like, why? Banks do a lot. They're clearing all your transactions, some things you pay fees for and you get mad at. Personally paying a fee to my bank doesn't bother me. It just doesn't like I said, dumb statement. Because people are going to say, well, if you don't have to pay it, why pay it? I don't want to chase and find a bank that you don't have fees. I'm okay with it. Dumb statement.
44:59
Damian Dunn
Yeah. I think that might be a bigger city perspective, because I can tell you in rural areas, that ain't going to fly.
45:06
Peter Dunn
Well, you're out there felling your own trees.
45:08
Damian Dunn
Well, I may have done that just before the end of the year.
45:12
Peter Dunn
So you have felled a tree. Am I using the conjugation correctly?
45:16
Damian Dunn
I think so.
45:17
Peter Dunn
You fell the tree?
45:18
Damian Dunn
Technically, the tree was already felled, but I cut it up with a chainsaw.
45:22
Peter Dunn
Oh, I would love to do that.
45:26
Damian Dunn
I would love to watch you do that.
45:29
Peter Dunn
We could do a live streamer, pull.
45:30
Damian Dunn
Up a lawn chair, a nice cold beer, and we can count on which limbs, tree or yours hit the ground first.
45:38
Peter Dunn
For someone who is not, like, actively outdoorsy, I'm kind of outdoorsy. Although I do have another weird admission, I think. I've only gone camping once and it was in college, other than on a mountain in the Pacific Northwest, which I guess that counts as twice. But, like, as an adult, I've never camped.
45:58
Damian Dunn
Playing basketball in the driveway does not count as outdoorsy.
46:01
Peter Dunn
No. I have a pocket knife. And my father in law also bought me an axe, a camp hatchet to help whittle the wood. What do you do? How do you chop a wood?
46:16
Damian Dunn
Do you ever sharpen that?
46:18
Peter Dunn
I just got it the other day.
46:21
Damian Dunn
To feed your stove?
46:22
Peter Dunn
To feed my stove. I will note this, the solo stove, while amazing, it goes through wood like I go through rice. Krispy Treats. Holy Cow. I would go through an entire what do you call a rick accord? I got to learn all these new terms. I got a bundle of Rick or a Cord. Okay, let's play a game of what is more a bundle of Rick or a cord.
46:48
Damian Dunn
I don't know.
46:49
Peter Dunn
Oh, you don't know?
46:51
Damian Dunn
I've never even heard of a Rick.
46:53
Peter Dunn
What else is in the news this week?
46:54
Damian Dunn
I can't wait for Trees to start showing up missing in your neighborhood. In the HOA.
46:59
Peter Dunn
Can you imagine my HOA? Someone cut down a German maple. It's like what's? A German maple.
47:08
Damian Dunn
All Right. Detroit based General Motors has been the top selling automaker in the US. Every single year since 1931. But even Cadillacs lose their shine after a while. Toyota dethroned. GM is the number one automaker in the country in 2021, marking the first time on record that a foreign car manufacturer has topped the list. Which would make sense if GM has done it every year. Prior a run of the numbers. Japan sold 2.3 million vehicles in 2021. That'd be Toyota, technically, which is up 10% from the last year. And GM sold 2.2 million down 13% from 2021. Toyota planned better for the shortage. They had more ships and more parts on hand to continue building those cars. So that went a long way towards them taking the number one spot.
47:58
Peter Dunn
Yeah, that wasn't surprising. I mean, what is actually more surprising is that they hadn't previously had the number one spot.
48:05
Damian Dunn
Yeah, that actually surprised me as well.
48:08
Peter Dunn
I was taking my daughter to school this morning, and there was a Tesla in front of us. And she was like, do you want a Tesla? And I was like, not really. And she was incredulous of the fact that I don't want a Tesla to my kids and my kids age. At least where we live. That is the greatest thing in the world. And I'm like, I don't get it. Anyway, that's it for this week's show. This year's first show of the year. So I'm sitting good vibes. Good Vibes. Are all that's in the budget? I'm Peter Planner. This is the show. Yeah. She was like, what's wrong with you? I'm like, I don't want one. It's not my thing.
48:44
Damian Dunn
The car after. The next one you get will be electric.
48:49
Peter Dunn
Oh, we're doing this.
48:51
Damian Dunn
I think it will be.
48:53
Peter Dunn
Okay.
48:54
Damian Dunn
Not this one that you're currently going to have to make a decision on.
48:58
Peter Dunn
Yeah. So three years from now, you saying.
49:02
Damian Dunn
My next car will be electric unless you go used.
49:06
Peter Dunn
Okay, so I was going to make this a segment next week, but I kind of want to just talk about it now. I want everyone to think about this.
49:15
Damian Dunn
Okay.
49:16
Peter Dunn
Because sometimes talking about stuff like this on the radio. The audience on the radio is different than the podcast and the live stream. You know what I mean?
49:23
Damian Dunn
Family here yeah.
49:25
Peter Dunn
This is for us. You all here's the situation I'm in. I have leased a car for the last three years, and by the way, it will be up in May. 1 time I ever released a car. It made sense, given my situation, and I've tripped into a really interesting outcome because of that. I can buy my car outright right now or in May for $26,000. The the car I've just leased for three years, the value to sell that car right now is $43,000. So that's a $17,000 spread. And so I got options, right? If I turned in my lease and didn't take advantage of a $17,000 arbitrage opportunity, then that would be dumb. That would be incredibly dumb. I could turn it back in as a down payment on another lease, which doesn't make sense. The whole point is I've got to buy this car and then resell it.
50:33
Peter Dunn
I mean, I have to, but then the difficulty arises. The reason I can get $43,000 for a car that cost me $26,000 is because of inflated used car prices. So how in the world am I going to secure a car in May or June that is not also ridiculously subjected to those inflated prices? Dame, do you have any idea how I'm going to pull this off?
51:01
Damian Dunn
No. It's the same thing with people trying to sell their home and then buy another one. It's the exact same thing, just on a smaller scale.
51:08
Peter Dunn
My hope is to find another lease deal sometime in the next four or five months and potentially even in March or April when supplies get a little bit better and have three cars for like a month or two until my lease is done and then just buy it out. Actually, I could just buy it out now because I don't think there's an early buyout thing.
51:32
Damian Dunn
You're pretty brand loyal. Are you looking at maybe expanding the menu of options?
51:38
Peter Dunn
That's a really great question. I have a Toyota product. I have had Toyota products for quite some time. Since 2002, maybe 2004. That's a great question. Possibly, but I doubt it. I like to say I would, but there's certain areas of my life that once I know something works, I don't like to futz with it. You know what I mean?
52:10
Damian Dunn
That was futz.
52:11
Peter Dunn
That was futz?
52:12
Damian Dunn
Yeah.
52:13
Peter Dunn
Is that the word?
52:14
Damian Dunn
Yes. No, it is. In case your audio got cobbled. I wanted to make sure it was okay.
52:24
Peter Dunn
So you think after I do this, three years from now, I will have an electric car of some sort?
52:30
Damian Dunn
Yeah. You've already had a hybrid.
52:33
Peter Dunn
Yeah, we have a hybrid.
52:36
Damian Dunn
It will, at very minimum be another one. But in three years, I think there will be a strong likelihood that you will move full electric.
52:47
Peter Dunn
Here's what I can't get over. I don't drive to Florida on a regular basis. I've driven to Hilton Head twice, I think. I don't know. I haven't even driven to Florida anyway. I think I have. How do you deal with that, driving from Indiana to Florida? Do I have to? Chattanooga charging company. How do you do that?
53:10
Damian Dunn
If you drive a Tesla, the supercharger network is really good and it plans out the entire trip for you. It does take longer. There's no getting around that, even if you have the supercharger stations. But it's possible. It's very possible. What we're seeing now is, I think it's a battery company in Michigan just replaced. They created their own battery, put it into Tesla Model S, and they got like 650 or 750 miles out of the last one in the middle of winter, which is tremendous. So battery technology is going to continue to progress. That range is going to continue to get extended, and it's going to become less and less of an issue now, I think where Tesla's electric cars in general really shine are the near home travels. If you had an electric car to drive within 90 or 100 miles of your location, you'd never have to worry about it.
54:07
Damian Dunn
You'd never have to stop in a gas station, just drive home, plug it in, and you're over and done. I think you'll look at this potentially a little differently when you make this decision again, another three years.
54:20
Peter Dunn
I spend roughly $70 a month on fuel for my car. At these gas prices, charging, like my electric bill is not going to be higher than but it's not going to be $70 a month more, right.
54:43
Damian Dunn
It depends on what your electric rates are, what they go up to. But typically, no, your electric fuel rate doesn't match your gasoline rate.
54:55
Peter Dunn
Yeah. The other thing is, I don't want a Tesla. And I know you don't have to get a Tesla. You can get other electric cars. I have an Elon Musk problem I can't get over.
55:05
Damian Dunn
It's fair. But the company you're loyal to has some fully electric, sound, expensive options.
55:16
Peter Dunn
Anyway. I don't know why over the last two months, one point in the last couple of months, I got on and looked at our itunes reviews. I haven't looked at them in years. And one of them said, gave us like one star or something said, Pete just talks about how wealthy he is, which I don't actually feel that way, but I do feel like the last ten minutes may be there.
55:40
Damian Dunn
Well, guess what? They're not listening to us anyway.
55:42
Peter Dunn
Good point. Show is not for you.
55:44
Damian Dunn
Yeah.
55:46
Peter Dunn
Here's the thing. Whether someone has money or doesn't have money, it doesn't mean they don't have problems that need to be solved. That's the nature of empathy. I don't want to get too deep into this, but that's why when people get mad at the stigma of wealth, whether you have it or not, never resonates with me because I know that someone is only dealing with what's in front of them and it doesn't make them better or worse. That's why for this show for the last ten years, if I read a question about someone that's got $200,000 who's 27 years old, this show is not for you. If you go, this show is not for you. This show is for you. If you hear $200,000 and you say, good for them. All right, let's figure out what we can learn from this. That's when I know the show is for you.
56:34
Peter Dunn
If you hear of someone's situation on this show and you judge them as opposed to trying to learn from them, not for you, choose a different show like that person did, clearly, or they're going to listen and leave another crappy review.
56:46
Damian Dunn
They went over to Joe's show. That's all right.
56:49
Peter Dunn
Joe's the best. All right. Anything else you want to get? I mean, I got to go. I got all these texts and whatnot.
56:57
Damian Dunn
Of course you've got people you need to answer to, not answer to, but tell them your opinions.
57:05
Peter Dunn
You know what? It is like nothing degrees here in central Indiana. I'm going to go home this afternoon and sit on my porch and burn my solo stove and see if I can pull that off. I almost did that in a zoom call yesterday because I worked from home, and then I thought, yeah, it's a bit much.
57:24
Damian Dunn
Any chance that your soffit or ceiling in your porch is going to warp and get all wrinkly with all that heat going up?
57:34
Peter Dunn
So now I have to Google.
57:35
Damian Dunn
Soffit you might want to check and make sure you're not going to do some damage to your house. How tall is the ceiling in there?
57:43
Peter Dunn
That's a good question. I would say the ceiling is 15ft.
57:50
Damian Dunn
You're probably okay, but okay. I mean, maybe not. You might have thousands of dollars of damage there.
57:55
Peter Dunn
Little Miss Muffett sat on a soffit eating a curds and wick.
57:59
Damian Dunn
Yeah, exactly how that goes.
58:02
Peter Dunn
How are you going to be the buzz kill to me? I'm like, I'm having fun. I got a gift. I'm burning woods.
58:09
Damian Dunn
Did you not go through my review yesterday?
58:11
Peter Dunn
Yeah, I know. You ruin everything I do? I got a guy.
58:18
Damian Dunn
I got a million things to do.
58:19
Peter Dunn
You're not one of them.
58:21
Damian Dunn
Yeah, I'm not in that text chain.
58:23
Peter Dunn
Hey, everybody stay getting money.
