00:12
Peter Dunn
Oh, good day, everyone. It's early. That's right. On a Friday. It's Peter Dunn. Pete the Planner. I would said CEO of something I don't even know. Hey, it's the host of the Pete the Planner show. And there's Damian Dunn. Dame, I've shot so many videos and things this week where I'm claiming to be this person or that person that I don't even know how to label myself when I start a radio show.
00:28
Damian Dunn
These days, they all blend together, much like all of your personalities.
00:32
Peter Dunn
Maya culpa time. We're sorry the volume has not been great here recently. Production value of the podcast has slipped. Dame is low. I am high. We're trying to fix it this week. Stick around. We're sorry that you have to turn it up so you can hear Dame, and then I blast your eardrums with frivolity, and that's never fun. No, I sounded insincere when I apologized.
00:54
Damian Dunn
There, didn't I think that's probably because.
00:56
Peter Dunn
You were actually I am sincerely apologetic about the whole thing. I'm just frustrated by it because I just don't want to spend any time on it.
01:05
Damian Dunn
Well, people may not understand, if they've never put together a production before, how time consuming it can be to chase down the one little detail that may be throwing everything off. And if you don't have time to do that, then it just becomes one more thorn in your side.
01:24
Peter Dunn
Those watching on Facebook Live and YouTube Live are wondering, why in the world is Peter in a three piece suit minus jacket, therefore a two piece suit, but a different variety? Going to a funeral today, so thank you for asking. Everybody lost it. A dear man, Fred Parker. Poor man. So, anyway, we will go say goodbye to him later today. All right, Dame, let's do the show. We've got our segments lined up. The audience isn't really building because, well, we're broadcasting at an unusual time right now. But you know what? They'll get over it, right?
01:59
Damian Dunn
I hope they come back eventually.
02:01
Peter Dunn
So here's what I've said. I don't care who's watching and I don't care if the audio quality is bad. Is that what I've said?
02:07
Damian Dunn
Essentially. Essentially.
02:09
Peter Dunn
Thank you, Danza, for the kind words. Okay, dame will start the show in three, two this week on The Pete the Planner Show, we answer your money questions. Here how is how the show works. You email us, askpete@petetheplaner.com that's askpete@petetheplanner.com. And Damian Dunn, no relation, Vice President of Advice at your Money Line and Hey Money joins me to answer your questions. Hi, Dame.
02:37
Damian Dunn
Don't you think it just blow people's mind if someday we said, you know what, we've been related this whole time. It's just been a big ploy.
02:45
Peter Dunn
Didn't we threaten to do like a 23 ANDME and then I backed out because I didn't want my DNA out there or something?
02:51
Damian Dunn
Mr. Conspiracy Theory.
02:53
Peter Dunn
Okay, so Oz is slacking me right now. Is she about to tell me our radio is low? No, she is not okay. Our volume is low. Okay, Dame, here we go. Several questions this week to go through here on the show. The first one revolves around a person's retirement. They emailed me and I'm going to give it to you now. Dear Pete, my wife, 76, and I, 78, are retired. We both have a pension. Our house is paid off, and our income greatly exceeds our expenses. We have over $1.2 million invested, and we haven't touched it and don't plan on touching it. We've always been conservative investors, but we've recently gotten to a point in which we want to be done with stock market investing altogether. We just don't want to think about our money fluctuating in value, and we also don't want bonds or annuities.
03:44
Peter Dunn
We just want to be done. Are we being foolish? William in Newport Beach. Dame, what do you think?
03:54
Damian Dunn
Interesting situation. This isn't quite as uncommon as it may sound to some folks. If you are a family who had two people employed with pensions and then maybe Social Security on top of it and lived a relatively conservative lifestyle, it's not uncommon to retire with at least as much income as you had when you were in full working ages. So even though it seems maybe a little foreign to us, it is very possible. So in this particular instance, crime, they were excellent savers, it sounds like, and they've got all the income they need. Based on what their expenses may be. As long as inflation doesn't screw things up drastically for them, I think it's very possible that they could check out of the market and just live their life.
04:44
Peter Dunn
I guess the question becomes for me, there's a big element I want to talk about in a second. But to your point, how bad does inflation have to be to mess them up? If they are currently earning via the pension and Social Security, much more than they need, they're not touching the 1.2 million. How much does inflation have to crush them for them to use up all of their income on their expenses and then have to dig into the 1.2 million?
05:12
Damian Dunn
A lot? It's going to be impossible for us to come up with a realistic number, but part of their income right now, the Social Security side, is going to be tied at least a little bit to inflation. So that's going to be continually bumped. The pensions, who knows? I doubt it. That's probably going to be a fixed amount of money on a monthly basis. But then the savings side, even if their expenses start to outstrip the income that they're receiving, they're not going to come anywhere close, most likely to pulling 4% of that money out on annual basis to meet their needs. So I think they've got tons and tons of wiggle room and they can start to honestly look to enjoy some of that money and what they might be able to do with it.
05:59
Peter Dunn
Yeah, we are in the next segment going to talk about how Social Security is going to adjust next year based on this inflation we're dealing with right now. So to the point you just made, they are protected in that sense. The pension is a different story. Dame what if this person wasn't 76 and 78 years old? They and their spouse, and they were 36 and 38 years old and they had $100,000 nest egg and they also wanted to be done with the market? Is our guidance the same for that person?
06:30
Damian Dunn
I can't imagine it would be for that case. They have to show me a way that they are planning on building that nest egg with similar market type returns. I mean, there are ways to do it. You could feasibly get into well, once upon a time, you could feasibly get into real estate and have a different sort of income stream set up. Who knows what the real estate market, especially for rentals, is going to look like going forward. It's just maybe a little bit too early to tell on that side. But there's a need that everyone is going to have to account for once they get to retirement. And I don't care if you get it through the stock market or annuity or bonds or real estate or owning a business until you die and just take profits out of it, however you decide you're most comfortable getting there, fine, but let's really crunch the numbers and make sure that it's a reasonable approach for you.
07:24
Peter Dunn
Yeah, I think what's different about this 76 year old and 78 year old compared to a 36 and a 38 year old is this 76 and 78 year old have earned the right to be done with it. When you're 36 and 38 and dismayed with the market or whatever, or fluctuations, unfortunately, to no fault of your own or fault of your own, you haven't earned the right. That's the nature of sort of the financial privilege these people have created for themselves. So I think they can be out of the market. I will know one thing that concerns me about the situation, though, quite a bit, and it has nothing to do with the market. These people are doing well. They got plenty of money, plenty of income. Dame what happens when someone has a long term care need or an in home care need? That is a problem.
08:12
Peter Dunn
And so I wrote about this actual question in my USA Today column this week and asset based long term care would be a beautiful thing for these people.
08:23
Damian Dunn
Yeah, I think this one fits really well. They could just put one lump sum of money towards that sort of protection. Never have to worry about ongoing payments in the future. It's money they don't I'm sorry, money they aren't currently using. Who knows if they will need it in the future, but they aren't currently using it. So that would add an additional layer of protection to make sure that both of the folks in that relationship are covered in the event of something really horrible happening to them down the road.
08:51
Peter Dunn
Yeah, we did a participant event yesterday for Your Moneyline clients and Dane. We talked about being present in your own financial life during that event. And I think this is a really good example. This email of William who emailed us is present. He's saying, you know what? I'm taking a look at what's going on right now and this is no longer making sense to me. And that's what I really dig about this, is that you and I have investment objectives right now. You and I have things we have to worry about, and as we get older, 30 years older, those things are going to shift and you have to be present. Otherwise you're just going to lead to it's going to lead to more heartache. And so I'm a big fan of this email from William because I don't think enough people ask him themselves this question.
09:41
Peter Dunn
And I also think and even though you and I are a pro financial advisor, I think a lot of financial advisors talk people out of this sentiment, in my opinion.
09:50
Damian Dunn
I was just about to ask you if you think William has a financial advisor.
09:56
Peter Dunn
I think he does, because I think something is telling him, other than just conventional wisdom to stay invested. What do you think?
10:05
Damian Dunn
That's my suspicion, because it would be really difficult for a lot of financial advisors to have a million dollar plus account and have the person say, you know what, I just want to be in cash. I don't want you to manage the money anymore. I just want it to sit and I'll use it when I need it. Thank you for your services, I'm moving on.
10:25
Peter Dunn
Isn't that basically $5,000 of lost revenue for a financial advisor somewhere in that range if they lose this client, who then goes to a series of bank accounts that have the proper level of FDIC coverage?
10:37
Damian Dunn
Yeah, and it was probably a really low risk, low effort account as well because they didn't really need the money. The income was being provided by the different income streams between the pension and the Social Security.
10:49
Peter Dunn
Yeah, the time not that advisors don't spend time on everyone's particular accounts, but this William guy, just how he writes seems pretty low maintenance, pretty laid back. So, yeah, I am curious. We bring that up. Like, how much is his advisor, if he has one, trying to talk him into staying? Because the guy brought up Annuities, so maybe his advisor brought up Annuities true. Maybe that's the tell on this one. Anyway. William. Yes. In our opinion, you have earned the right to be out of the market, but certainly make sure that you're using FDIC the right way with your certain bank accounts and get the proper coverage that way. D***. Coming up after break, we're going to hit the tail end of this with the Social Security adjustment coming next year because of inflation. All that's next on the Pete the Planner show. I'm Pete the planner.
11:39
Peter Dunn
My man Roy popped in to say hello on Facebook. Roy and I were financial advisors together for early part of my career. Hello, Roy.
11:47
Damian Dunn
Is Roy suggesting the annuity to our last?
11:50
Peter Dunn
I don't know. He might. That's the thing. I think you and I both know Dames, a lot of financial advisors tune in and we appreciate their support. And by the way, advisors are otherwise people are free to disagree with us and give us their opinion. We're not going to yell at them or anything like that. Dame how's the three coworkers at the outset of today's show all decided to slack me at the same time?
12:15
Damian Dunn
Well, they're not used to us doing the show at this time either, so they figure you're free to chat.
12:20
Peter Dunn
Dame I'm very excited. This is my last official work duty before my first vacation in a very long time.
12:27
Damian Dunn
Once again, it's just me and the listeners standing between you and freedom.
12:31
Peter Dunn
I couldn't decide and you and I didn't even talk about this, whether you should just do a show without me and host it with someone else next week or just go best of next week.
12:40
Damian Dunn
We'll talk after the show.
12:43
Peter Dunn
Oh, man. All right, let's do that. Inflation Social Security story. It's right here. All right, are you ready to go?
12:52
Damian Dunn
Let's do it.
12:53
Peter Dunn
Three, two, one. Back on the Pete the Planner show. Dame in the last segment, were answering an email from William, who emailed askpete@petetheplanner.com, and William has some protection with the rigors of inflation beating him over the head from a Social Security perspective because every year there's a Cola, a cost of living adjustment on Social Security retirement benefits. And just this week we've gotten an estimate what the adjustment is going to be in 2022. And Dame, that's quite the raise. Did you see it?
13:28
Damian Dunn
I did, but I can't recall exactly what it is. It's like 20%, right?
13:33
Peter Dunn
I wish. This, of course, is coming from the nonpartisan partisan advocacy group the Senior Citizens League.
13:47
Damian Dunn
I think I've got some of their rookie cards stashed somewhere away.
13:50
Peter Dunn
It's also a bump from last month's estimate. I think I touched on this on the show last month where they thought it would be 5.3%, but now since the new estimate of the consumer price index from June increasing 5.4%, they're thinking 6.1%. That's a lot of money. That's a huge increase.
14:14
Damian Dunn
Oh, yeah. I mean, for years and years, typically, you only hear about the other side of that equation, how Social Security really doesn't increase. And it's barely a meaningful adjustment. This year has the potential to be a gigantic increase, something very meaningful and very noticeable. So good on those of you that are collecting Social Security.
14:35
Peter Dunn
You know what I can't figure out yet because I'm not an economist. And anyone who's listening to this show who is an economist will just laugh at me and judge me. Dame typically, if we're dealing with an inflationary environment, don't we typically see higher interest rates in an inflationary environment? Therefore, you're also going to see like a CD at a bank paying 8% to keep pace with all this stuff. Am I stating that wrong? Am I just showing how little I know about economics?
15:05
Damian Dunn
No, it's not uncommon. If we think about the last time we had a very high inflationary period in the US. Which would have been late 70s, early 80s, mortgage rates were, I think, in double digits in some instances. Interest rates were incredibly high. People were talking about CDs that they had that were paying potential double digits if they were long enough. Just a different time period. So typically with inflation, higher inflation periods, yes, we do see higher interest rates that go along with that. We haven't got there yet because in general, things are still really low and we have had a very short term rise inflation. Who knows if it'll stay there or not, but the Fed has decided to keep things under control on the interest rate side and we'll see if that changes in the near future. But it's not going to get ramped up really quick and it's a long way to go until we get to even the interest rates that we had 15 years ago.
16:02
Peter Dunn
There was concern this week that inflation is going to become increasingly problematic for people on the very low end of the wage scale, to the point where the inflation we're seeing in the housing market, the price increases we're seeing in the housing market are completely pricing minimum wage and living wage workers out of the ability to afford housing, which that's pretty darn extreme. Dame the idea that there's long been the argument that minimum wage was so low because you can't afford a lot of different things. Now we're saying the most elementary expense housing is unattainable based on the current level of inflation. That's a little terrifying, I have to admit. I read that headline on the way home yesterday in traffic. I was parked more or less, and I saw it on my phone. I was like, yeah, that's not good.
16:51
Damian Dunn
Yeah. Some of the issues that I hope don't persist are going to be pretty serious, and this is one of them. If you look around enough websites and check and see what housing is in certain areas of the country, you have the typical offenders. San Francisco and coastal cities have always been expensive. But now places like Boulder, Colorado, where 1000 square foot, essentially a tear down house is going to be three quarters of a million dollars just because it's in the right zip code. In a big city that's not too far away from me, someone took an abandoned building on the edge of outside of the city proper, rehabbed it. And there are three units there now for $1.2 million apiece. And that is greatly out of the price range of the surrounding neighborhoods. And it just is a problem that's going to have to be reckoned with.
17:53
Damian Dunn
Gentrification of certain areas is going to cause really big problems for a big number of people if we're not careful.
18:04
Peter Dunn
The effects of how this recession and the recovery is going on even stretch to all corners of our country. Even look at rent retail rents in New York City and how much they've fallen and how restaurants are starting up left and right in New York because rents are so low. In fact, this article in front of me right now suggests la casa del Mufongo, which is, I believe, I think it's like a polenta style thing made of yuca root. I might be making that at Mufongo.
18:36
Damian Dunn
Mufongo. Was that the villain and the Lion King?
18:41
Peter Dunn
Could have been that's mufasa, a Latin restaurant and nightclub, signed a ten year deal on a 15,000 square foot space to close to Harold Square in New York City because rates are falling, or I should say price per square foot is falling so fast in New York City, it's pretty wild. I sometimes wish weren't in this moment right now, so I could just watch it from above and it seemed like high school econ all over again. But I feel like everything's heading in weird different directions, including mortgage rates fell even lower this week, and so refinances are up again, I think I feel.
19:19
Damian Dunn
A little bit different about commercial rent rates versus residential rent rates. I mean, if we can spur some development and entrepreneurship with good commercial rent rates to potentially reinfuse areas of cities that have been overlooked or neglected for a long period of time to potentially bring more people to those areas, I think I'm in favor of that side of it. It's the residential I'm sorry, rates that are really most concerning.
19:49
Peter Dunn
So do you have any idea what average asking retail rents are in New York City right now? How much per square foot do you think retail costs? It's down 10.7% from last year at this time, and it's fallen 15 quarters in a row. But guess what the average dollar square per square foot is in retail rent in New York City?
20:19
Damian Dunn
$1,000 a square foot.
20:21
Peter Dunn
It was at one time, right? I mean, you're exactly right, but it's $615 a square foot right now, which, given that it's fallen 15 quarters in a row, that's how we arrive at that number. And again, as we've talked on this show, for well over a year, if not for twelve years, the stock market and the economy are not the same thing. Was the market. The stock market continues to give us some very nice returns some pretty interesting signals of what could be, you still end up with economic stories like this, which are jarring and just make you think, like, at what point do the market and the economy cross back over and meet back up? I guess they should say, like they did in March of 2020, where both were just getting beaten pretty badly.
21:08
Damian Dunn
And that's why if you and I knew that answer, we'd be doing this show from the Caribbean with great audio.
21:14
Peter Dunn
Maybe emailer, william knows something. And that's why one's completely out of the market. I mean, look, going back to that last segment for a second and even I guess it crosses over to this segment, isn't it nice to eliminate different areas of worry in your life? And this idea that if an area of worry is that your money is constantly fluctuating, you can permanently put it into that. I mean, that is both true and the fact that you're losing buying power because of intense inflation makes it not true. But I guess I'm just jealous of William.
21:42
Damian Dunn
Yeah. And you know what? He should be celebrating right now. He's earned that right and he shouldn't have any stress over this decision. So I hope he comes to peace with it.
21:50
Peter Dunn
What are the chances that 78 year old William listens to the radio show and as he's just not like a reader of the column, maybe he just.
21:57
Damian Dunn
Listens while he mows the yard.
22:00
Peter Dunn
Yes. All right, Dame, let's do this. Let's take a break. Coming up after the break, I got a great question from a friend of mine about how do you get your team set up to invest and save money? We're going to talk about that next in a banking story, of course. I'm Pete the Planner, and this is the show. All right, dame. So for those in the saga of my kids banking issues, my prediction last week of what would happen when I took Ted into the bank because his account went dormant and they were charging him monthly fees because of it. Basically exactly what I said would happened. It was not the best way to end the week. It was really frustrating.
22:39
Damian Dunn
No, but I'm glad Ted got a chance to experience what living life with a celebrity dad is like. Oh.
22:50
Peter Dunn
That hurts. That was below the belt. And you said it because you knew it would make me mad.
22:55
Damian Dunn
That's the best part.
22:57
Peter Dunn
I hate you in a good way. Thomas, if you're listening, I do not hate your father. I love him very much. I mean, appropriately.
23:05
Damian Dunn
Right.
23:05
Peter Dunn
That'd be a big explanation, too. All right. So dame. Yeah. Let's hit this. This is talking to kids about money. Teens, what do you do? This, that and the other. In three, two, one. Back on the Pete the Planner show, dame got an email from a friend named Eric. I'm not going to give you his last name. Trying to share my friends with you. And he had a question. He has an 18 son and he had a question about how can he get the kid investing and all these sorts of other things. So let's hit it. Hey, Pete. My almost 16 year old has saved about $1,400 in allowances, birthday stuff, doing extra work around the house, et cetera. I got him a local checking account balance of about $445 last year with a debit card so he could do some spending on his own.
23:49
Peter Dunn
And now the 1400 is just chilling in the savings account. As you know, the interest from the savings account is trivial these days. We are trying to demonstrate that poking some money away to grow is what responsible people do. So is there a better way to make that $1,400 work for him? Eric? Now, Dame, this is a more complicated question than one might think because there are three elements at play here. The first one and a half are going pretty well. Give a kid an account to spend out of and how they see how commerce flows. Ideally, income goes into that account and fills it and it comes back out. So the $445 check, the need to have a checking account and debit card and teach how digital currency works, check it works. Thank you. The second aspect of this is savings, which I also think is a really incredibly valuable lesson to store money away for later, for safekeeping.
24:52
Peter Dunn
However, the third point really gets lost in this because you can't grow money in a savings account. The need and desire to have money grow is important. You can't find it here. Which is why we need to introduce a whole other concept to Eric. Your thoughts?
25:11
Damian Dunn
I agree. While you were talking, I did have a question that I want to run past you, and I think it might be an interesting concept to introduce to Eric Jr. Or whoever it may be. How early is too early to introduce the concept of an emergency fund to someone?
25:32
Peter Dunn
Yeah, that's a really good point. That's interesting. I've never thought of it that way. This is a good time any at 16 or even twelve. As I think about my daughter trying to teach her about checking and savings, I think it's hard to get your head around a financial emergency and what the volume of that is or the magnitude of that at that age. But to be fair, you and I both know a lot of adults that can't get their head around that either. Yeah, that's a good point. I don't know how you think about that.
26:02
Damian Dunn
I think maybe if you expand on that idea, maybe this is the point where you talk about the buckets for them. At this point, you have a piece of money that is set aside for emergencies, even though mom and dad are going to cover any emergencies that arise in your life at this point. But still the concept is good to understand. And then you have that midterm bucket where you can expose that money to a little bit of risk and invest and do whatever you want to figure out. Because honestly, if you're going to make some mistakes, make them now to figure out what you are comfortable with and aren't comfortable with. And then you've got maybe that long term bucket that you're not really filling up just quite yet because, well, frankly, it's not quite time necessarily. Unless you've got a job as a teen and you want to contribute to a Roth IRA or something of that nature, then by all means, absolutely, go for it.
26:53
Damian Dunn
But at this point, maybe the bucket approach is not a bad idea to start introducing your children to.
27:01
Peter Dunn
That was my answer too, right? It was. Go figure. Keep the 445 in the checking. That's bucket one. Bucket two. We're going to call the savings account at $1,000 and just cap at 1000, which leaves us $400 on the top end or any other deposits, future deposits this person wants to make to go into the investing bucket. And I think if you're going to teach a teen how to invest, there's good ways to do it and then there's very common horrible ways to do it. And so what I recommended is they go with a very large traditional trading company, investment company like Fidelity or Ameritrade or something like that, get up sort of a teen account set up. Fidelity has a new teen brokerage account. I think we talked about it a few months ago on the show. And here's what I would recommend. I would put half of whatever is going to be invested in a boring index fund and I would put half in a consumer based stock that interests the kid, and then I would just watch things happen.
28:07
Peter Dunn
What do you think?
28:08
Damian Dunn
Yeah, I think that's an interesting approach to make sure that the individual that the child gets exposure to two of the more common ways of investing. You've got the one that takes everything into aggregate and then you also have the individual equity as well that they care about, they're passionate about, but then they can learn about following headlines and looking at prices and all that good stuff. If they're a real nerd, they can go look at tax disclosures and try and figure out what all that means. But yeah, I have no problems letting someone who's just getting started get their feet wet a little bit. Honestly, here I thought you were going to say, you know what, just go put it all into cryptocurrency and forget about it.
28:52
Peter Dunn
No, that's what you would say. You would open a Robin Hood account and then buy cryptocurrency, but not so many words. I did try to dissuade my friend Eric from having his son open a Robin Hood account because Gamifying, this process is not what you want to teach. At this point in time, you just want the natural ebbs and flows of the market, the numbers themselves, to do the dancing and not the graphics and confetti and everything else.
29:20
Damian Dunn
Yeah. I think the temptation when you're young is going to be showing your friends what you got going on and, hey, I've got a Robin Hood account and here's what it's doing. Look, show them your phone and what's going on. Honestly, it's okay if it's boring. Just get them used to putting money away, looking for the results, evaluating the investments that they've got and thinking long term with it. So Robin Hood is probably not the right option at this point. And I do like the idea of going with an established firm that can cater to their needs.
29:56
Peter Dunn
It's now time for the segment. Take a load of this guy, or Take a look at this guy, or Get a load of this guy. Dame here's this guy. Dame when I was in 6th grade, I used to look up my stock prices in the business section of the newspaper four days a week.
30:12
Damian Dunn
Four days a week?
30:13
Peter Dunn
Yeah. For some reason, it wasn't five days a week. Like, they would print Mondays prices on Tuesdays and Wednesdays, wednesdays and Thursdays and Fridays. And then for some reason, they wouldn't necessarily print Fridays on Saturdays, but sometimes on Sundays they'd have a recap of the week, which made no sense because you've missed all the price movement. But, yeah, that's how I would check my account when I was trading tobacco stocks back in my teens, is I would wait and for the paper to show up, and I'd look for the Philip Morris ticker symbol.
30:42
Damian Dunn
Just walk around and high five the kids that were smoking outside of school.
30:46
Peter Dunn
Yes, there was a whole campaign in the middle school like, don't use tobacco. Kick its b***. But it was like cigarette butts. And I was like, we got to look at the other side of this.
30:57
Damian Dunn
What's about this personal freedom stuff? I mean, you can't tell me what to do. Let me live my own life.
31:02
Peter Dunn
Man at least let him chew.
31:04
Damian Dunn
Yeah.
31:09
Peter Dunn
I guess the same thing can be said about the newspaper business in general today, which, boy, I'm treading pretty dangerously, given I writing for newspapers. But it's like you're reading what happened previously, not even close to in the moment, and whether that matters or doesn't matter. It does matter. When you talk about financial markets.
31:28
Damian Dunn
I guess it depends on what your goal is. Is it long term stuff? Who cares? Why are you checking it every day if it's long term anyway?
31:35
Peter Dunn
Because I was 16. What else was I going to do, watch ThunderCats reruns?
31:38
Damian Dunn
Yeah, because you were that guy.
31:40
Peter Dunn
I was that guy. All right. Dame so that's our recommendation. Keep money in a debit card account for a teen to spend through, have a set level of savings, 501,001, 500, depending on what you have, and just have it sit there and be boring and have their back and be this junior emergency fund that I'm now going to have to get my head around. Dame and come up with something innovative there, or maybe just have you do it. And then the third bucket, of course, is to show them how price fluctuations can be exciting and terrifying and start to develop that risk tolerance. I think properly developing your teens risk tolerance is super important. And dumping them into crypto or GameStop or AMC ain't the way to do it. That's not the way to develop someone's investment chops, get them in an index fund and then just a consumer based stock.
32:30
Peter Dunn
Although you could argue, Dame, that GameStop would be appealing to a 16 year old kid. Have it be something like Krispy Kreme Donuts or Starbucks, whatever kids are into.
32:38
Damian Dunn
Sure, yeah, I think that makes total sense. And we'll set them up for a successful long term investing career.
32:44
Peter Dunn
Dame coming up after the break, the biggest waste of money of the week and the news I found last week's biggest waste of money of the week while I was doom scrolling in bed. And so I will share with you next right here on the Pete the Planner show. I'm a fella. All right, what was your first individual stock you owned, Dave?
33:09
Damian Dunn
Facebook.
33:13
Peter Dunn
Oh, yeah, I think we've talked about this because you didn't buy individual stocks.
33:16
Damian Dunn
Until yeah, until like 15 years ago, 1215 years ago maybe. And it hit the target that I was going for and sold out, and it promptly continued to double or triple beyond that. Here we are.
33:30
Peter Dunn
My first three were Philip Morris 5th, 3rd bank and then Sirius Satellite Radio. Sirius Satellite Radio. I think I went from like twenty cents to four dollars a share and I had thousands of shares. Yeah, that was nice.
33:51
Damian Dunn
Yeah.
33:53
Peter Dunn
Do you remember when you first got into investing and you would be like, I'm going to take a look at penny stocks. Do you remember that whole, like totally, because it sounds cheap. And so you're like, well, I mean, it's just pennies, so let's just see the penny stocks.
34:08
Damian Dunn
Yeah. There was a large automotive related company in my hometown that had some big financial trouble a number of years ago, and their stock went to less than a dollar a share. And of course, my dad, being the wonderful dad, he was, told all his friends that I had bought tens of thousands of shares of it and because then it promptly went right back up to ten or $12 a share. And so all his friends were looking at me like I was now going to be the guy that was buying their drinks for the rest of their life. But no, I did not, unfortunately.
34:46
Peter Dunn
What was the other the pink sheets.
34:47
Damian Dunn
Pink sheets.
34:48
Peter Dunn
I got the pink sheets. Okay. All right, let's do the final segment. You ready with the news? Current events?
34:54
Damian Dunn
I got it ready to go.
34:55
Peter Dunn
Hopefully I don't steal one of your current events because one of them is the biggest waste of money.
34:59
Damian Dunn
I bet it is, but that was down the list. But I think I know exactly where you're going.
35:03
Peter Dunn
And three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is dame, I don't know if you know about the billionaires going to space. You've only brought it up the last two weeks. You know about it, right?
35:16
Damian Dunn
I've heard something.
35:18
Peter Dunn
If you're keeping score at home, you wanted to have me bet on whether they'd make it back. Well, Richard Branson has made it back.
35:25
Damian Dunn
One for one for one.
35:27
Peter Dunn
And Jeff. Bezos. Bezos. I never know how to I don't either. I mean, if we mispronounce his name, is he going to get mad?
35:34
Damian Dunn
He don't care.
35:35
Peter Dunn
So he's going up with Blue Origin, which is the name of his company. Who cares? But there was an auction. Someone bid $28 million to ride along with Jeff Bezos on Blue Origin and his brother Mark and aerospace pioneer Wally Funk. I just wanted to say Wally Funk and the person that bid $28 million isn't going on the mission.
36:05
Damian Dunn
Yeah, you never know when the cable guy is going to show up. They give you that range and maybe it just crossed over and he can't make it now.
36:14
Peter Dunn
Yeah, so that's the weird thing about this, is that the guy's not going on because he can't make the schedule work. He might go on a future mission. Now, the money was donated to charity. $28 million was donated, actually, to a foundation that Bezos controls. So now the son of a CEO of a Dutch private equity firm, somerset Capital Partners, this 18 year old kid, Oliver Damien, is going in his place. And so, boy, money talks and spaceships fly, right?
36:51
Damian Dunn
Exactly. I think that's how I remember that saying, going all the time.
36:55
Peter Dunn
Do you have any interest whatsoever in going to outer space? In how these people are going to outer space? Like, they're going up and they're up there for a couple of minutes and they come. Does that interest you on any human level? Forget the money. Like, I buy you a ticket. Are you going?
37:11
Damian Dunn
Oh, yeah, if you buy me the ticket, absolutely. But to go up there and spend a couple of minutes floating around and coming back down I'd at least want to circle the Earth a couple of times, probably, but to make it worth my time.
37:25
Peter Dunn
Yeah. I don't have much interest in this whole thing. I know if I went to try to climb Mount Everest, I would most likely die, but I would have, and especially how bad I am at getting altitude sickness. But I would much rather go try to do something where I've done something as opposed to I just sit and I fly up into space? I don't know.
37:46
Damian Dunn
Do we talk about me wanting to go to space camp when I was a kid? We talked about that. This is very appealing to me. But the cost for two minutes of floating around, I don't know. It just doesn't seem like a good use of anybody's money yet.
38:03
Peter Dunn
Note to self return gift card dame. What's in the news this week?
38:09
Damian Dunn
It's comfort food in a cone. A limited edition macaroni and cheese flavored ice cream will hit freezers nationwide this week. Brooklyn based ice cream maker Van Lewin and Kraft Heinz announced Tuesday of this week the cheesy frozen treat. And that makes me want to wretch. Just saying. It went on sale for $12 a pint on Wednesday to mark National Macaroni and Cheese Day. It'll be available for purchase at Van Lewin stores across the country as well as online. While supplies last, the companies describe the ice cream as a, quote, cool, creamy scoop of ice cream that brings that comforting, nostalgic feeling from a warm bowl of craft macaroni and cheese.
38:55
Peter Dunn
I will tell you, this sounds good to me.
38:57
Damian Dunn
What?
38:58
Peter Dunn
All right, so Mrs. Planner ran the New York City Marathon several years ago. And there was a restaurant in New York called WD 50. And the chef's name was Wiley Dufrain. And it was like one of these gastro culinary things, molecular gastronomy, where they make food taste like other food, but it's in a different form. And one of the dishes we had was locks and bagel, but it was ice cream. And so the bagel was formed ice cream was formed into a bagel formation, which was actually salmon flavored ice cream. And then they had salmon looking ice cream on top, which was actually cream cheese and everything seasoning. So it just blew your mind and you're eating it and you think one thing is going to taste like one thing and another is another thing, but it all tastes like a beautiful, wonderful bagel, locks and bagel, except the fact that it's ice cream.
39:50
Peter Dunn
And it was one of the most mind blowing culinary experiences I've ever had. And I'm guessing the mac and cheese would not deliver on that.
40:01
Damian Dunn
No, there's just no way that this is no. Pete, you like to cook. I know you like to cook.
40:11
Peter Dunn
Oh, I love to cook.
40:12
Damian Dunn
You ever use McCormick spices and rubs?
40:15
Peter Dunn
I think at some point in time in my life, I've rubbed down with the McCormicks.
40:18
Damian Dunn
Well, they're looking for some help. Specifically, they need a director of taco relations.
40:26
Peter Dunn
Pardon me, now?
40:27
Damian Dunn
A director of taco relations. As the director of taco relations, you'll be McCormick's resident consulting taco expert. You'll be their official eyes and ears for all things tacos. You'll have the opportunity to work with McCormick kitchens to develop and innovate a delicious taco recipe and travel across the country in search of the latest Taco trends, dialogue with other like minded Taco connoisseurs across social media, and be in on the latest street Taco seasoning mixes developed by the McCormick Innovation Lab. You must be able to work remotely for up to 20 hours a week from September to December of 2021. Pete, how much do you think they will compensate you for four months of work?
41:11
Peter Dunn
I'm thinking a lifetime supply of spices is my guess.
41:14
Damian Dunn
Honestly, payment is $25,000 per month, not to exceed 100 grand.
41:20
Peter Dunn
To be a Taco ambassador of some.
41:22
Damian Dunn
Sort, director of Taco relations. This is a serious gig, Pete. If you are interested in applying, you have to submit by July 2020 111 50 09:00 p.m. Eastern.
41:35
Peter Dunn
That's a pretty good gig. Do you remember when you're a kid and you're trying to figure out what are the best and worst jobs, and you get, like, armpit sniffer and then you're like, no, but I could be an ice cream taster. Do you remember the whole thing? I think my kids are into that right now.
41:49
Damian Dunn
Yeah. Do you remember what you would have said as your best job when you were a kid?
41:53
Peter Dunn
Probably the same thing as what Ted says. A basketball player or a football player.
41:58
Damian Dunn
For a long time, I said everybody, told everybody my dream job was a bullpen catcher for the Chicago Cubs.
42:03
Peter Dunn
That's a great that's amazing. I mean, you'd have terrible knees and a swollen hand, but if you catch.
42:11
Damian Dunn
The ball in the pocket of the glove, Pete, you don't get a swollen hand.
42:14
Peter Dunn
Look, I'm not into hockey. Dame, what else is in the news?
42:17
Damian Dunn
States could do a far better job teaching financial literacy in their schools, a new report suggests. To that point, 66% of states earned grades of C or worse for such instruction, according to the Nation's Report Card on Financial Literacy, a study released by the American Public Education Foundation. Just 17 states were given grades of A or B. The report relied on factors like graduation requirements, standards, and curriculums to create scores. Just five states missouri, Nebraska, North Carolina, Utah, and Virginia received an A grade for mandating personal financial education from kindergarten through 12th grade and requiring a standalone personal finance course for high school graduation. Another twelve states received a B, 19 states earned a C, and twelve were given a D. Meanwhile, four spots alaska, DC, Puerto Rico, South Dakota they got an F. Indiana?
43:14
Peter Dunn
Yeah.
43:14
Damian Dunn
What did they get? You want to guess? C. We got a B. Pete? Indiana coming through with a solid B.
43:22
Peter Dunn
This is one of if I were in a gripey mood, which I'm not sure I am right now, I'm deep previously mood because I'm about to go on vacation. This is a very frustrating thing for me. Not the lack of education, but the reality as to what the education would need to be to work and why it doesn't work. The fact of the matter is people's financial literacy is in the tank, because what would prevent it from being the tank is to arm them against corporate greed, to show you how to not be taken advantage of by banks and real estate companies and marketing brands. That's what it's about. But that's why you'll never have the financial literacy you need, because the places that fund this in an altruistic way, because it's a community service project, would actually be arming you against themselves, and that's why it'll never work.
44:11
Damian Dunn
Yeah. Financial literacy, I don't think, probably goes quite far enough in determining or describing behavioral issues as well.
44:18
Peter Dunn
Boy, I got a little more heated there than I'd like.
44:22
Damian Dunn
Well, happy vacation.
44:23
Peter Dunn
I almost busted a stitch on my vest. All right, well, Dame, so we'll figure out if there's a show next week or not. I don't want to be involved, because I won't be here. But listen, everyone else, I hope the volume worked this week on the show. Dame's volume not too low, mine not too high, and everything in between. I'm sending you good vibes, because good vibes are all this is a budget. I'm Pete the planner, and this is the show. I'm not kidding. During the show, everyone I knew called, emailed or texted me or slacked me, but they're not all related, so it's not like the world just crashed. They want to know if I'm okay. It's just like, I don't know why I don't just turn off all notifications, because this is a horrendous. It's a train wreck here.
45:05
Damian Dunn
That would have been a good idea.
45:08
Peter Dunn
All right, so, Dame, are you doing a show next week, or are we talking about that off the air?
45:12
Damian Dunn
Off the air. We're going to talk about that off the air. Off the air.
45:14
Peter Dunn
Okay. Hey, everybody. I hope you have a good week, whether it's with Dame or with no one. And of course, as always, stay getting money.
