00:11
Peter Dunn
Fire. D*** it. Just realized I got it to work, but then I forgot to put the visual up because I was just testing the audio, and so I danced the whole time.
00:22
Damian Dunn
Yeah.
00:23
Peter Dunn
Hi, everybody. Welcome to the Pete the Planner show. We get so excited around here when we're able to make things work. Hello, Jameson. Good day to you. Down in Tejas, I believe they pronounce it dame, how are you? I could put you on the screen. How are you?
00:40
Damian Dunn
Dame I am doing well. It was almost like a repeat of last week when I was wondering if I was going to make an appearance at all. And I think it was maybe halfway through the first segment before you clued me in.
00:50
Peter Dunn
A lot going on. Dame. Happy 4 July weekend. If you remember, if you listen to back shows like I do on a regular basis, you will know that you noted the reason you were excited for this weekend was so that you could catch Tom Cruise in theater and Top Gun Two. But we have known now that is delayed until November. So I'm sorry that your weekend will not be as awesome as it would have otherwise been.
01:17
Damian Dunn
I'll find something to do.
01:19
Peter Dunn
Dame this week on the show, we've got three actually really good topics, I think. Hello. Steve Miller. Hello. Calling me the Tom Papa of personal finance. I'll take that. Oh, Jameson notes. I've missed several weeks. Been catching up on the podcast. The best thing to happen in the podcast stay getting money. And Ollie's appearance a few weeks ago about Fun dad summer. We could call her again today. Dame I am taking Ollie to the bank today to get her a Tween debit card today. A Tween debit card.
01:52
Damian Dunn
Interesting. Is that somehow linked to the parents or send parents notifications on when transactions go down on that?
01:59
Peter Dunn
Yeah, it's an app. It's like a whole thing. So we're doing that, teaching a little responsibility this afternoon. And of course, since you know me, we will be walking in the bank and I will not say a single word the entire time. We will make Ollie facilitate her own process because, well, that's how you teach people things. Dame this week, here are the topics, and you choose what we're talking about. First, a really interesting question that I made you research, and then I went and researched on my own because then I was like, I got to know something because I know nothing about a sweep mortgage that is all over TikTok right now. That's what all the TikTok finance people are talking about. So we will talk about that. We got a good question about rollovers, like old retirement accounts, like, what do you do?
02:43
Peter Dunn
And then dame my Indianapolis Business Journal column this week is a question about how often should you meet with your financial advisor. So I'm going to let you program the show this week. You choose the order in which we tackle those.
02:55
Damian Dunn
Let's do the sweep question. Let's get that right off the top.
02:58
Peter Dunn
Okay. Sweep. And then what's? After that, you want to do the meet with financial advisors and then we'll do the investment one? Yes, that's what I would do. And then Guam is a killer this week.
03:11
Damian Dunn
It is good. That's an aggressive tease going good.
03:15
Peter Dunn
And then also, I have to note that we will be talking about where the jobs are, so to speak. There's a report of where job creation has happened. Pretty interesting. What's more interesting is where jobs have fallen off. Did you see the report on CNBC today about where we lost jobs in the last month?
03:33
Damian Dunn
No, we don't have TV in my area.
03:36
Peter Dunn
It's a website. Okay, dame in. Are you ready to go?
03:41
Damian Dunn
Yeah.
03:44
Peter Dunn
Hold on. I got to find this. Sorry. Everyone was like, oh, my gosh, what's happening? Are they organized now?
03:51
Damian Dunn
No.
03:52
Peter Dunn
D***. Where's that email I sent you that you said, I will look it up.
03:59
Damian Dunn
Would you like me to read the email?
04:01
Peter Dunn
Yes. Can you read it when we start the show? Okay. Three, two, one. This week on The Pete the Planner Show, we answer your money questions. Here's how the show works. You email us, askpete@petetheplanner.com that's. Askpete@petetheplanner.com Magic happens. After that, Damian Dunn, Vice President of Advice, may answer your question here on these airwaves. We may email you back, or we may simply ghost you. Dame, welcome to the show.
04:28
Damian Dunn
Good afternoon, Pete.
04:29
Peter Dunn
Happy Independence Day.
04:31
Damian Dunn
Same to you.
04:32
Peter Dunn
More like financial Independence Day. This email is from Jennifer. Hi, Pete. Straight to the question. What do you and Damien think about sweeping your mortgage with a HELOC? We have about 50% equity in our home valued at about $420,000, I'm guessing. You'll say that using debt to pay off debt is always a bad idea, but is there a strategy to you that makes any sense? Jennifer. All right, dame. So sweeping the mortgage is sweeping the Internet right now. People are always talking about here on this Internet thing, about this technique of using a home equity line of credit, a credit card with a pretty long payment window and your paycheck and your mortgage to create this incredibly complicated structure of debts and payments and a bunch of sorts of other things. So, Dame, do you want to attempt to explain what sweeping your mortgage is, or do you want me to do it?
05:35
Peter Dunn
I'm deferring to you here, my friend.
05:38
Damian Dunn
I'll give it a shot, and you can maybe help me fill in around the edges a little bit. First of all, be really careful when you're trying to get financial advice off of TikTok or other social media platforms. I know it might seem a little controversial, but when I see people also on TikTok or Instagram or wherever saying that you can get a half a million dollar mortgage if you only have $50,000 worth of income and can afford it. Or if they have to break out a giant whiteboard to try and illustrate how this is going to work. Might be another reason to think that maybe this isn't for everybody.
06:20
Peter Dunn
Before you explain that, how do we not sound like old guys complaining about people getting financial advice from TikTok? How can we deliver that piece of guidance without sounding like old Baldman like we are?
06:32
Damian Dunn
Fair question. Everybody's got angle. If you will notice, most of those people are selling something that has to do with the method they are pushing. Not saying they may be trying to make a profit on it, but it seems like they may be trying to make a profit on some of this. So take everything with a grain of salt, run it by somebody else and see if it still makes sense. But just be careful sweeping a mortgage. All right, Peter, alluded to it. You need a few components to make this happen. Mortgage first, obviously. Paycheck, credit card, and the HELOC. And this is a rather convoluted method of leveraging your paycheck and the line of credit and the HELOC in order to put big chunks of money towards the principal of your mortgage. Some months, all of your paycheck is going to go towards the principal of the mortgage.
07:30
Damian Dunn
You're going to charge all your expenses, and then you're going to use the HELOC to pay off the credit card, and then you're going to use your paycheck to pay off the HELOC and still pay your mortgage. And over a period of time, that process is going to repeat. The goal of this is putting large chunks of money towards the mortgage in order to eat down at the principal as fast as you can, thereby lessening the amount of interest that you're paying on the mortgage overall. I do a decent job on that, Pete.
07:59
Peter Dunn
I thought that was a lot better than I could do. Like many things in the personal finance world, technically this works. Technically. I'm not saying they don't have a problem with it. We'll get to that in a moment. But technically, this works. If you execute this by the law of the land and you are very disciplined and nothing ever goes wrong in life and you keep your spending in check and you never lose your job and you can find the types of vehicles. We just talk about a HELOC and a credit card that make this work. Because that's not always the case with these different devices, then, yeah, I think it works. But I also would have to say anecdotally I believe about 300% of people could pull this off well, and the rest of everyone else would mess up their financial life significantly.
08:55
Damian Dunn
The opportunities for failure or potentially making things worse for yourself seems to increase with the more steps that you put into a process. And this is a very complicated process. It also relies on, you having very good cash flow with a lot of free income that you don't have allocated otherwise. And if that's the case, why in the world aren't you just making the extra principal payments on your mortgage to start with? I don't want to say do it the old fashioned way, because that just means that we're still old and makes sense to us. But I don't see a huge incentive to do it the way that was proposed in the email.
09:39
Peter Dunn
And it's not like you have to make this work for three or four months. We're talking ten years of all this. Rigmarole dame, you ever go on YouTube? You're like, hey, I'd like to work on my body a little bit. You're like, how to change your physique in 180 days. And you watch this time lapse video, the guy's eating some chicken, and there's some broccoli's involved, he's got some dumbbells, and you see, look schlubby like Tom Brady at the NFL draft or the Combine in the first picture, and at the end he looks more like me. And it's like you're watching this video and you're thinking, okay, a minute and a half in, I'm in. And then you realize it took this man six months to transform his body. You might even start to try some of his exercises for six to nine days. But Dame, very quickly you realize there is 0% chance you can execute that plan for 180 days.
10:30
Peter Dunn
And that is why it is so remarkable. It's not remarkable in its simplicity. It's remarkable in its complexity and sweeping your mortgage is remarkable in its complexity. There's zero simplicity to it for someone like me.
10:49
Damian Dunn
I don't typically try and look for every corner that I can try and get around on somebody or anything of that nature. There are some areas where I think it makes sense to maybe try and do things a little bit more intelligently. Paying off your mortgage, I guess it could be one of those. You can be more intelligent by putting more principal towards your payment. You can be more intelligent by taking a 15 year versus a 30 year mortgage or refinancing when the interest rates drop, and taking advantage of things of that nature. However, leveraging debt to pay off debt and relying on yourself and all the circumstances that you can't control around that seems like your tempting fate.
11:33
Peter Dunn
There's always something like this. Back in 2005 to 2008, there was this idea that you would get a 40 year interest only mortgage, invest all the principal you removed from your home, grow it on the side. I mean, there's always something like this, but rarely is it simple. Dame, you mentioned you don't always to try to take advantage of cutting corners and this and that, and we don't have a ton of time left in this segment. But I had a buddy come to me the other day and he said, look, my car lease is up. And what I often do in the car lease is I will buy it outright. But the deal was pre agreed to when I leased the car. And because I take care of my car, I can actually then turn around and sell it for a $4,000 profit in the open market.
12:20
Peter Dunn
He said given that used cars are in demand right now, he thinks he can get even more of a premium than that. And again, I'm like you. I'm not always the person that's, like, trying to cut every corner and squeeze every dollar. And I also don't want to deal with individual car buyers. But, man, that kind of makes a lot more sense than sweeping your mortgage.
12:43
Damian Dunn
Yeah. Benefit of the circumstances in this case, it works out well. You know, you've got a market that's high in demand, and you might be able to make an additional profit based on your good habits in the situation.
12:53
Peter Dunn
See, my fear on that is, if I tried that, someone would be like.
12:57
Damian Dunn
How much horsepower does that?
12:59
Peter Dunn
How much horsepower does that have? And I'd be like, man, there are no horses in that. That's the thing. A nightmare to me is selling my car to an individual buyer in the open marketplace, that is a nightmare for me. But dame enough about that. Coming up after the break, how often should you meet with your financial advisor? One investment advisor says every three months for 60 to 90 minutes. I'll tell you what's right next. I'm pizza planner. Man, that was a pretty good close.
13:27
Damian Dunn
Yeah. Once upon a time, RollsRoyce used to list their horsepower figures for their automobiles as adequate. Oh, that was it.
13:37
Peter Dunn
I don't know how to react to that.
13:40
Damian Dunn
I think that's just your answer. If somebody were to how many horsepower, you'd say it's adequate.
13:44
Peter Dunn
Got it. No, that makes sense. Dame, let's annoy everyone some more. How great was the little league baseball story I told you before went on air?
13:53
Damian Dunn
Amazing. It had everything you could possibly want.
13:56
Peter Dunn
It was so good. It was so good. Oh, man. Good times. I usually don't drink when I'm on air, but this lacrosse is going down nice. Someone says it tastes like what you imagine TV static tastes like when it comes.
14:13
Damian Dunn
Like I always say, it tastes like flavored Aqua Net.
14:19
Peter Dunn
Yeah, I get that, too. All right, let me pull up the question. Dame, I'm not trying to hurry along our show today, but I am saying this show is what's standing between me and a three and a half day weekend. Want to call Ollie? She ask you want to call her and see if no, let's not do that. Okay, in three, two, one. Back on the Pete the Planner show. Dame, we got a question this week, and I answered it in my Indianapolis Business Journal column. The question is, dear Pete, my investment advisor has offered to meet with us every three months and not just a phone call. He's suggesting a 60 to 90 minutes formal meeting. This doesn't exactly appeal to me, but I fear I'm missing something. Is there a compelling reason for us to chat with him that frequently about our investments?
15:11
Peter Dunn
The whole reason I chose to have an investment advisor is so I don't have to think about my investments that much. Seems like a lot of work. Susan in Carmel. Dame, I usually don't like to read what I've written on the air, but I have to read to you how I started this. I don't think you're being lazy, Susan.
15:37
Damian Dunn
I hope people appreciate that.
15:39
Peter Dunn
So, Dame, what do you think here? I got to think 60 to 90 minutes every three months, unless this person has a family CFO and has tens of millions, if not hundreds of millions of dollars, which I don't think she would because she wouldn't be emailing me overkill. Right? Yeah.
16:01
Damian Dunn
You meet as much as needed, but as little as possible, in my opinion. There are instances when somebody is trying to maybe make some big changes or maybe get some behavioral finance issues under control, that it might make sense to meet with an advisor and that could all be drawn out in the scope of what they're going to try and help you with. But to sit down and review a financial plan or investments every three months I don't usually advise people to look at their own stuff every three months to make any serious decisions on it. So it seems pretty aggressive.
16:43
Peter Dunn
I don't want to distract us from an otherwise really good conversation, but during the break of the show were talking to what sparkling water tastes like what lacroix tastes like, and Rick on our Facebook Live feed just right now, put, it tastes like your foot has fallen asleep, Rick. That's unbelievably funny. I might not recover from this segment. Dame here's the other element of what I think is probably going on. Sometimes investment advisors, specifically investment advisors, not just financial planners, but someone who manages your investments and sees over them. I think oftentimes they try to make it appear as they're delivering a lot more value than they really are. To say, well, hey, we are putting four to 6 hours of FaceTime in with you. Imagine how much we're putting on the back end. There's passive investing, there's active investing, but this is like Meddling.
17:42
Peter Dunn
It doesn't even make sense to me.
17:44
Damian Dunn
This begs the question, Pete, and I bet you know about what I'm about to ask.
17:48
Peter Dunn
I know.
17:48
Damian Dunn
How much is he charging?
17:50
Peter Dunn
Well, not only how much is he charging, but I think my gut tells me, well, there's also two things. He really is doing a lot of trading and he wants to update them on it, which is an expensive way to go and very active. But d***, what if he's charging them a ton and they're just in a bunch of index funds that are modern portfolio theory index funds.
18:11
Damian Dunn
Yeah. There's all sorts of information I wish we had for this one just to I won't go there. There's a whole bunch of information I wish we knew about this.
18:25
Peter Dunn
I will say this, that part of being an investment advisor is, in my opinion, and I assume you agree with me here, but as Dame, you never have to agree with me. I think part of an investment advisor is appropriately simplifying complicated concepts and making the information approachable. However, having met hundreds, if not thousands of financial advisors in the last 20 years based on my road travels and training financial advisors, there are two camps, my friend. There are the people who do what I just said and then there are people who specifically make complicated concepts more complicated so that they have a role in the process. Do you agree with that assessment?
19:09
Damian Dunn
Totally. Yeah. You're going to either try and be your education source for your clients, trying to help them along the path of understanding their financial situation and how they're going to get from point A to point B every step of the way, or you're just going to say, follow me and I'll take care of it. And I'm going to show you that it's entirely too complicated for you to understand and there's no way you could possibly live without my services. Let's go.
19:36
Peter Dunn
Yeah. You know what? Yeah. And that's what sort of drives me crazy a little bit. You ever go on YouTube and you search a very simple home fix, but it seems like a complicated process, but then you see that it's like a 67 cent part at the hardware store and 3 minutes of manual labor. But you know, sometimes that process is made to seem more difficult so that you can get an $85 service fee and then parts and labor. No discredit to people trying to earn a living and helping people out in the service industry. But man, Dame, some things are simple and some things can be simplified. And I feel like if you're paying a financial advisor, I don't want to know how the sausage is made. And I'll go a step further. Do you remember last year, last April, when I happened to put a giant fishing hook through my thumb?
20:31
Peter Dunn
Do you remember this?
20:32
Damian Dunn
Sure do.
20:33
Peter Dunn
When I had that removed at the hospital in the heart, the heat, the fire of the pandemic, I didn't want to know anything about the process. Like, I didn't want to know anything. Just take it out of my thumb and you can even keep the fishing lure. I don't want to know. I think the reason you hire a professional, unless you're an engineer, is because you don't necessarily want to know. You just want to know it's taken care of. But I might be biased because I happen to be a conceptual person I.
21:08
Damian Dunn
Totally expect to spend more time with a financial advisor at the inception of the relationship. If they're doing a comprehensive financial plan, you're going to spend some time with them. Whether it's aggregating data on your own and getting it to them or reviewing some stuff or explaining how things have been done in the past, you're going to have a time commitment. There in a lot of instances to make sure that the financial plan is going to be representative of the situation that you're actually in. Outside of that, it's really going to depend on a number of different circumstances. Typically somebody, if they are on the higher end of the client ladder for that investment advisor, that financial planner, you're going to get more attention. I hate to break the bubble to everybody else, but people who have more money that work with your advisor are probably getting more phone calls and birthday cards and anniversary cards and all that fun stuff.
22:00
Damian Dunn
That doesn't mean the advisor is doing less of a job for you than they are. The person that might be getting more attention, please don't misunderstand because that's simply not the case, especially if the investment philosophy lines up with that. So it's okay if you meet with your advisor twice a year or once a year in some cases, especially depending on the stage of life you're in with your finances, it's okay. But saying a quarterly meeting, I don't know too many people that would do that.
22:31
Peter Dunn
It is a bit absurd. It's self indulgent on the advisor's part, and you said it at the very beginning of the segment. Maybe there's a behavioral issue that you're trying to get accountability on, but that's clearly not what's going on here. This is a person that wants to show that you homemade charts, that you don't care about dame. I take a serious look at my financial situation once a year. Serious look once a year. That's it. I might glance at how a particular position is doing. I might look in a statement, but not critically, not with the idea that a change would be made. And you actually said that either earlier as well. You might look just because you're interested, but you don't look with the idea that you're going to take action. And the idea that you're meeting every three months for 90 minutes to means you're taking either too much action or it is 100% self indulgent on the advisor's part.
23:30
Peter Dunn
And this is coming from two guys who are about as pro advisor as it gets. Imagine if were like huge do it yourself or proponents. We're not. We are about help, reasonable help. And that is not reasonable help. And you are also right for the third time in this segment, that person is charging way too much money.
23:49
Damian Dunn
How much are they charging?
23:50
Peter Dunn
No, they are charging okay, we have got 10 seconds left. I'm going with zero point and a quarter buck 75. Coming up after the break, should you roll over old 401 KS? Well, this guy has eight. What should he do? I'm Pete the planner, and I'll tell you next. My outros are outstanding. Recently. Outstanding.
24:13
Damian Dunn
Think it was just the fact that I got so many things right, that segment, you were able to summarize them and set yourself up.
24:22
Peter Dunn
Sometimes when I pass it's like Hollywood Square. I pass it to you. You give answer. Then I get my answer, and it's like when you distill it down and you get all of it perfect. Then I just I spend the next 8 minutes just repeating what you said with little funny stories. That's the show.
24:38
Damian Dunn
The funny stories are great, though.
24:40
Peter Dunn
I don't know. They kill time. All right, this next question, did I send it to you?
24:46
Damian Dunn
I want to say I saw it somehow, but I don't recall all the details.
24:51
Peter Dunn
Guy, he emailed me directly. I'm very good at those. His name was something that seemed helpful. No, that's not it. There it is. All right. I know this person's name. I feel like I should know this person. Okay, you ready to go?
25:15
Damian Dunn
Yes.
25:16
Peter Dunn
In three, two, one. Back on the Pizza Planner show. Dame, the email inbox filled up this week, and it filled up, oddly enough, the day before we recorded, so that makes for good show planning. But the good news is we don't plan the show. Dame. My question keeping track of retirement accounts from prior employers. Consolidate or keep them where they are? Dear Pete, I'm 51 and about to change jobs, and I'm wanting advice on when or if I should consolidate retirement accounts from prior employers and when it's best to just leave them where they are. Timeout. This is a great question, and before I read any context here, sometimes I think people move them when they shouldn't. I think there's a lot of reasons to leave them alone, but we'll take a look. I have approximately 540,000 American dollars in several retirement accounts, in addition to an eight month emergency fund and some small ETF investments that I contribute to on a monthly basis.
26:18
Peter Dunn
I wonder if this guy's single. I don't know. I own my home and am planning to pay it off in eight or nine years, then likely downsize and use the remaining equity for retirement savings. He's pretty well put together, right?
26:33
Damian Dunn
Yeah.
26:34
Peter Dunn
I'm currently saving 10% for retirement. Approximately 19,000 per year. Big flex there, right?
26:40
Damian Dunn
I can do math.
26:41
Peter Dunn
Big check energy.
26:42
Damian Dunn
I can do math.
26:43
Peter Dunn
Yeah. And am maximizing my Roth contributions. I have a Roth, IRA. A Roth? Four hundred and one K. A four hundred and three B. Account three four hundred and one K. So this guy is a physician, right?
26:57
Damian Dunn
Potentially.
26:57
Peter Dunn
Got a 403 B. So he worked for a nonprofit at some point?
27:01
Damian Dunn
Could be. An attorney for a nonprofit.
27:03
Peter Dunn
Could be. This is the fun part. Now I'm going to Google him, see what he does. Not tell anybody. Yeah, I'm totally doing that. By the way, I have a Roth IRA, a Roth four hundred and one K, a four hundred and three B account, three four hundred and one K accounts, and a fund maintained as part of a public employee pension plan. I regularly review each of the plan websites and track the account balances. He's totally single. I mean, what else but have rationalized leaving them where they are as they are all over the minimum balances that would require me to move them. And by having multiple funds with multiple companies, I get the benefit of the diversity of several funds, even though most of them are in target date type accounts. Is there a benefit to consolidating funds where possible? The state pensions obviously cannot be moved into one or two retirement accounts beyond the simplicity of fewer places to keep track of?
27:55
Peter Dunn
Or should I leave them where they are as long as the investments are all roughly similar in the risk and account types? Thanks for your podcast and all the witty reperte with your co host, Dame. And Pete, you're not bad either. Wait, so that was he's saying that you're witty? I'm mad now. Now I'm going to say his name on air and his Social Security number. Dame. Okay, so the obvious thing is the reason you wouldn't have fewer accounts is because it's just easier to keep track of.
28:21
Damian Dunn
Yeah, organization. You've got eight different investment accounts spread out all over the place, believe it or not. Now, I don't believe this gentleman is at risk of it, but accounts get forgotten about every once in a while. Say you move and don't change an address or something of that nature. You find out down the road that, oh yeah, well, I had a ABC company and totally lost track of it. So organization is going to be one of the top two reasons to consider consolidating your 401 KS or 403 B's into an IRA. The other one pete, want to give me your opinion before I jump into it?
28:59
Peter Dunn
Another reason to do it. Mine's going to be weird. I don't think it's going to be the one you choose. Sometimes you can participate in an account in which there's a closed investment in it which you could no longer get into in another way, and so therefore you're locking yourself into sort of an exclusive investment. But that doesn't apply to this person because he's using target date funds.
29:22
Damian Dunn
Right? You're exactly right. If you wanted to leave your money at a place because there was once upon a time there was. You remember Dodging Cox?
29:33
Peter Dunn
That was what I was thinking. I can't believe you said that.
29:36
Damian Dunn
Yeah. How long ago was that? 1520 years ago. There was just a really great fund that you couldn't get into. They weren't accepting new contributions from new investors. Current investors could. Continue to invest in it, but it was a closed fund at that point, and the only way you could access it is typically through a some other plan like that. So that would be a reason to leave it there. But if you wanted to think of another reason to consolidate it now we're going back to the other side fees. Fees involved in some of your 401K plans, especially smaller ones, might be a little prohibitive in making a good argument to leave the money there, especially if you're on a target date fund. So you say you're checking everything regularly online to make sure that everything's as it should be and things don't look like they're running afoul.
30:28
Damian Dunn
Okay, so I believe you think that the fees are reasonable there, too. So I don't know, pete, if he's not really one for thinking fewer is better as far as organization goes, he could probably run with it and be okay with it.
30:42
Peter Dunn
Yeah. There's not only the idea of being organized for the living, there's also the idea of being organized for the surviving the living. For the living. Right. And so it's like, okay, have you tried to close and get accounts and transfers and rollovers from various different companies when you're mourning the death of the loved ones? Dame, if you've ever done it, yeah, you know, it's awful.
31:14
Damian Dunn
It's not great. I mean, you got to get death certificates and figure out exactly what everybody needs. Do they need an original? Can they do with a copy? Does it have to be notarized I mean, there's all sorts of stuff that goes along with doing that, which leads into have a very organized death binder as well in this case. So if you're going to have accounts all over the place, just changes where you're going to have all the organization at. You're going to have to keep all that information in a readily accessible place by whoever's going to take care of your affairs after you die.
31:45
Peter Dunn
The other element of this that's incredibly obvious is this person does not have an investment advisor.
31:50
Damian Dunn
Yeah, that's right. Because he wouldn't have nine different 401 KS, would he?
31:55
Peter Dunn
No, not a chance. Which isn't necessarily bad. I remember when I was an investment advisor, I had a client who was an attorney at one point was an attorney on the East Coast, and left his 401K there when he came here because as were talking earlier, there was some sort of exclusive action within that he wanted to be a part of. The fees were criminally low, and that's what he decided to do. I don't see in this situation, the fees being the issue, I think if I had my druthers, I would probably consolidate down to fewer accounts. It doesn't have to be one. In fact, it can't be one because there's different tax sensitivity to some of these things. But I would probably shorten it down. What would you do dame before I.
32:46
Damian Dunn
Get to what I would do, lisa from our team made a very interesting comment to me just now. His RMDs are going to be a nightmare in the future. Lisa so that would be a great time to start consolidating is before you have to start taking RMDs, just so the calculation goes a little bit smoother.
33:04
Peter Dunn
When you hit what is it? 70 and a half. You have required minimum distributions.
33:09
Damian Dunn
Believe that's.
33:10
Peter Dunn
Now, Pete, is it why you're in the advice team? Is it 72 now? Yeah, I got pushed out when one.
33:18
Damian Dunn
Of the last acts during all this.
33:21
Peter Dunn
Last stuff, that's been so I'm not that embarrassed.
33:24
Damian Dunn
No, you shouldn't be embarrassed about that.
33:28
Peter Dunn
You're good today. You should do this for a living. No, I actually don't feel bad that I don't know that, because I don't give specific guidance to anyone, so I can't remember everything. Anyway, when you reach 72, as everyone knows, you are required to distribute some money from those qualified investments so that you have to pay tax on that. So Uncle Sam can get his ken mott in. The Facebook Live says it was 70. It's 73, but then he said 72.
33:58
Damian Dunn
I should stop the difference and go 72 and a half.
34:01
Peter Dunn
Sure.
34:01
Damian Dunn
I'm sure the government will be fine with that.
34:04
Peter Dunn
So, Dame okay, weigh in. What would you do? Consolidate or not consolidate?
34:07
Damian Dunn
Personally, I'd consolidate. Just because I wouldn't want to keep up with all those different accounts and different companies.
34:14
Peter Dunn
Fantastic. Here's what we're going to do. I just wrote on my hand, here's what we're going to do. We're going to take a break. We come back. Biggest waste of money of the week. It's a doozy. It is a doozy. But I'm intrigued. All the best ones make you think, what a complete I'm intrigued. Right? So we'll do that. We're going to talk about where the jobs are coming back, where the jobs are leaving. I am shocked. In the June jobs report, where jobs declined in a particular sector. That just makes absolutely no sense to me. We're going to talk about the next and, of course, Dame's current events, the time he gets to shine, and I don't just mean because he has no hair on his head. All that's next right here on the Pete the Planner show. I'm Pete the planner. These outros are unbelievable.
35:03
Peter Dunn
They are unbelievable.
35:05
Damian Dunn
Starting your weekend off very well right now.
35:08
Peter Dunn
You want to hear what I'm doing after the show? I'm editing the show.
35:11
Damian Dunn
You're going to the bank?
35:13
Peter Dunn
Well, I am. I'm going to go get some Ramen, and I'm going to get Ollie some boba. And then I'm taking her to the bank to get a debit card. That's my day.
35:22
Damian Dunn
So my TD discovered Ramen for the first time this week.
35:27
Peter Dunn
Like Top Ramen? Or are we talking like Japanese gourmet Ramen?
35:31
Damian Dunn
No, like Top Ramen.
35:32
Peter Dunn
Okay, well, hey, that's a good place. To start.
35:34
Damian Dunn
Yeah. So he's all about noodles right now.
35:39
Peter Dunn
I don't feel that bad that I didn't know about 72. I mean, I kind of feel a little bad. On a scale of one to ten. Like ten. Like I forgot my wife's birthday. That'd be a ten. This is a two. I legitimately don't give one one guidance to anyone.
35:58
Damian Dunn
Right.
35:59
Peter Dunn
And the reason you're on this show is because I don't know anything, and your job is to correct me when I'm wrong.
36:06
Damian Dunn
Yeah, it's fine.
36:09
Peter Dunn
Clearly, it's more than a two. Okay. In three, two, one. Back on the Pete the planner show, this week's biggest waste of money of the week right here on the Pete the planner show is the most expensive burger in the world. It's been a decade since juicy's outlaw grill in Oregon. I just wanted to say it like that. Dame set the record for the world's most expensive burger with a 777 pound behemoth timeout. Can you really call something the most expensive burger in the world? Due to quantity? That's stupid.
36:48
Damian Dunn
Dumb.
36:49
Peter Dunn
Robert Jean de Vin, the owner of Dutch diner de Dalton's, thought he could do better. And with a sandwich that can be picked up with just two hands, the golden boy is the result. Its ingredient list reads like a who's who of rare foods from around the world, including Japanese a five wagyu brisket and chuck short ribs, white truffles, beluga caviar, paletta Ibirico, beloda ham, dom Perry on champagne in both the onion rings and saffron gold leaf bread, king crab and barbecue sauce made using copi LUAC, coffee and McAllen single malt whiskey. Described as having a complimentary but intense flavor profile, the first burger has already been sold, with the entire purchase price going to a local food bank. Dame, what do you think this cost? Here's the thing. Here's why this is intriguing to me. That does sound like a rather intense flavor situation, but I want to know what it do you have any desire to know what that tastes like, Dame?
38:02
Peter Dunn
Clearly absurd. Clearly absurd. But I do want to know what it tastes like. I do want to know. That does sound like a rather intense flavor situation, but I want to know what it do you have any desire to know what that tastes like, Dan? No.
38:17
Damian Dunn
How many of those flavors are complimentary?
38:20
Peter Dunn
Okay, well, it's funny you ask. Anything super fatty, which is going to be the wagyu, the ham, even the beluga caviar, to some degree, is going to be cut by the acidity of the barbecue sauce and the champagne that's in the onion ring. I think it could be good. And the king crabs could be super rich. I think it could be good.
38:43
Damian Dunn
Yeah. I think you need to make a central Indiana version of this with everything that you can buy at a grocery store.
38:50
Peter Dunn
Oh, my gosh. What an idea. Okay, so what would be the Indiana? It'd be a tenderloin would be involved, sure.
38:58
Damian Dunn
But this is a remake of Pete's eats in the making right here. I mean, this is a special edition.
39:05
Peter Dunn
Oh, my gosh. I'm in. Dame, actually, before we do your news segment, can we talk about where the jobs came back and where they didn't? Because I'm fascinated by this whole lead away, Peter. Okay, so great jobs report for June. 850,000 jobs added to the economy. Of the 850,000 jobs, 343,000 of them were in leisure and hospitality. Dame, you are not surprised by this?
39:30
Damian Dunn
Not at all.
39:31
Peter Dunn
Okay. Have you seen this list, by the way? Because the next thing I'm about to tell you is not the shocking thing on the bottom. It's the second largest growth area. Do you know that?
39:38
Damian Dunn
So I don't think so.
39:39
Peter Dunn
Okay. Are you ready to be both dismayed and shocked?
39:42
Damian Dunn
Yes.
39:43
Peter Dunn
What's the second category?
39:45
Damian Dunn
I thought you were going to tell me.
39:46
Peter Dunn
No, it's a guessing game now. It's 188,000 jobs. What industry is the second leading jobs being added back in June of 2020?
39:55
Damian Dunn
Dismayed and shocked. I would normally guess something with, like, dining or something of that, but I know that's not the case. So what is it?
40:06
Peter Dunn
Government that's like you're dismayed in shocked, aren't you?
40:15
Damian Dunn
Yes.
40:17
Peter Dunn
And I have no further context around that. Maybe it makes sense. I would have a hard time believing that makes sense. Next is professional business services. That's good. 72,000 jobs. Retail at 67,000 jobs. All right, Dame, are you ready to hear what industry lost the most jobs, according to this report in June of 2021? This is also shocking and dismaying in a different way.
40:46
Damian Dunn
What do you think the percentage of those jobs in government were? IRS agents.
40:51
Peter Dunn
Did you see? It might be one of your stories this week. There's like a 36 million return backlog for tax returns right now. No, it might even be more. It might be like 63. I may have inversed the numbers. What?
41:06
Damian Dunn
I've talked to a number of people that are like, well, still waiting on my refund. There's all sorts of issues inside the IRS right now.
41:14
Peter Dunn
What industry lost 7000 jobs in June?
41:18
Damian Dunn
Horse racing.
41:20
Peter Dunn
Construction.
41:21
Damian Dunn
Really?
41:22
Peter Dunn
Really. How?
41:26
Damian Dunn
What kind of construction is not doing well right now?
41:29
Peter Dunn
I have no idea. I can't figure it out. I mean, is that about the because lumber prices fell 41% or something? I just can't even get my head around that.
41:41
Damian Dunn
I talked to a contractor that I'm pretty good friends with just last week and asked if he'd seen any of the relief in lumber prices. He goes, not around here.
41:50
Peter Dunn
That's maybe by design.
41:52
Damian Dunn
Were there 7000 people building the wall on the southern border that got laid off?
41:57
Peter Dunn
That's a Ferish question.
41:59
Damian Dunn
I don't know what's in the news this week. Signing bonuses are usually reserved for professional athletes and privileged few white collar professionals. Not this summer, Pete. As US. Employers search for hires increases in urgency, especially in manufacturing, logistics, healthcare, and food service industries like truck drivers, hotel cleaners, warehouse workers. They're all being offered signing bonuses of hundreds, if not thousands of dollars. Nearly 20% of all jobs posted on search site ZipRecruiter in June offer a signing bonus, which is up from 2% of jobs advertised on the site in March. The states with the highest shares of job listings that include signing bonuses are Iowa, Missouri, Vermont, Wyoming and Arkansas, according to ZipRecruiter economist Julia Pollock. Hiring bonuses often start at $500, but quickly rise from there. Job postings across sectors show that $1,000 hiring bonus is quickly becoming table stakes in recruiting hourly workers who make between 1650 and $25 an hour.
43:08
Peter Dunn
I mean, I don't like gaming systems, as you and I mentioned in previous segments today. At that level of I'm trying to think how I can say what I want to say without sounding incredibly elitist and condescending. Well, why has that stopped me before? Why wouldn't a person get the signing bonus work whatever sort of progressionary period they have to work and then go, just do it again and again, and then turnover becomes a major issue?
43:35
Damian Dunn
Don't know. It's the same thing I thought. I'm not sure why. Especially younger kids aren't just going to job hop and make signing bonuses and move on.
43:46
Peter Dunn
What else is in the news this week?
43:49
Damian Dunn
Suppliers that want to land Amazon as a client for their goods and services can find that its business comes with a catch the right for Amazon to buy big stakes in their companies at potentially steep discounts to market value. The technology and retail giant has struck at least a dozen deals with publicly traded companies, which it gets rights, which are called warrants, to buy the vendor stock in the future of what could below market prices, according to corporate filings and interviews with people involved in the deals. Amazon over the past decade has also done more than 75 such deals with privately held companies, according to a person familiar with the matter.
44:25
Peter Dunn
This is both genius and also seems like an episode of The Sopranos.
44:29
Damian Dunn
Yeah. Doesn't it?
44:30
Peter Dunn
It really does, because they already have all the leverage in the world, almost literally. I mean, they've got more leverage than any organization in the world and then they're like, and we're going to take some of those profits. We're going to cut your prices as low as humanly possible, so we buy from you at the lowest price, and then we're going to dilute your own interest in your own profits by becoming a shareholder with you. And we're going to do it under the guise of it makes us partners capitalism. I don't think we're going to get an Amazon contract, not because of these comments, no one listens to the show, but because they also have more employees than anyone in the world. I don't think that we can handle that capacity. I'm going to be honest.
45:15
Damian Dunn
They are taking over everything.
45:18
Peter Dunn
Fortunately, I'm a shareholder, so let's keep it going. Jeff. He's on it. Do you have time for one quick last story?
45:26
Damian Dunn
Is he going to return from space safely?
45:28
Peter Dunn
That's a little macabre. I mean, I don't want to guess on his demise.
45:32
Damian Dunn
Go ahead.
45:34
Peter Dunn
I'm going to go. Yeah. Do you think he is?
45:36
Damian Dunn
Yeah, probably.
45:37
Peter Dunn
Okay. By the way, final ten second book review. I read Michael Crichton's Sphere, one of the original sort of thriller space novels the other day. Don't recommend. Don't recommend.
45:49
Damian Dunn
Okay.
45:50
Peter Dunn
All right. That's all we have time for this week in the show. Send you goodbyes because goodbyes are all that's in the budget. I'm Pete the Planner, and this is the show. Yeah. So I'm reading a lot these days. And I was like, you know what? Michael Crichton was one of the one. He passed away early, too early. I was like, he was one of the greatest writers of all time. Wrote Jurassic Park, wrote disclosure, all sorts of things. I'm going to read Sphere, which was made into a crappy movie, which I never saw. But it got like 10% on Rotten Tomatoes. So, you know, it's terrible. I read the book and I was like, okay. And it has one of those just like, this is dumb. This is why I don't read Sci-fi.
46:27
Damian Dunn
It was a great endorsement.
46:29
Peter Dunn
Yeah. So anybody don't read that book. I read that. Michael Crichton, one of those biggest criticisms about his writing. Brilliant. Interesting guy. Went to medical school, really interesting guy. People said he writes science fiction for people who think they're too good to read real science fiction. I was like, well, that probably describes me, too.
46:49
Damian Dunn
Was it the actual book you didn't like or how the person read it to you?
46:53
Peter Dunn
That's a fair question because I am an audible subscriber. It was the book. It was the content. But I do appreciate his writing. That's the other when I'm consuming a book, I'm consuming both the content, how it is presented and then how it is audibly presented. Because I'm extra. So I will give him A for writing, B for story, actually, C for story. And I guess the reader was fine.
47:19
Damian Dunn
Fair.
47:20
Peter Dunn
What do you do this weekend? Like butcher a hog or something?
47:24
Damian Dunn
Probably do some yard work and see if I can affix some pontoons to a mower to see if I can get my yard to knock it down a little bit.
47:30
Peter Dunn
Yeah, you got a lot of rain. You had an emergency plumbing issue earlier this week.
47:34
Damian Dunn
Yeah. All right, Dame.
47:41
Peter Dunn
I am the son of a plumber. I was able to go to college because of plumbing emergencies. Just like the one you had this week.
47:48
Damian Dunn
I almost called you to get your dad's phone number to make sure I was doing everything right.
47:52
Peter Dunn
Yeah. All right, dame. Well, that's it. I hope everyone has a safe half. Be 4 July weekend. Independence Day. I might actually have to watch the movie. Independence Day? It's one of those things. Dame. That's it. And everyone else, as always, stay getting money. Bye.
