00:02
Peter Dunn
Well, hello. Oh, and it's so delightful to be spending these moments with you. That sounded a little bit aggressive, slightly creepy, and odly, not sincere at all. Hey, everybody, it's Peter Dunn. Pete, the planner. Pete the Planner podcast, which turns into a radio show, joined by my friends. My friends, Kristen Ahlenius, who has endeared herself to me in a way that I must explain here in a moment. And Damian Dunn. We share a last name, we share a hairstyle and we share sensibility, but we share different opinions on music. Everybody, good morning. Rick swank. Big Rick swink. When the big holiday cheer season? Kristen, you were in the HQ one this week here from your remote location. Hello, Andy. And you brought me a cooler?
00:54
Kristen Ahlenius
Yes.
00:55
Peter Dunn
Packed with freezer beef from your own freezer from Keith the Cow. Keith. The beef. And I am so excited to partake in Keith. And for those that are vegetarians or vegans, this moment of the show was not endearing and arguably pretty gross.
01:15
Damian Dunn
Oops, do you have big plans for Keith?
01:19
Peter Dunn
I was thinking about it last night, laying in bed as I could not sleep. Here's what I'm thinking about with the steaks. I'm thinking about shaving them down, potentially and making, like, Philly cheesesteaks with Keith the Beef. Ground beef. I mean, obviously chili or burgers or something like that. Would that fly?
01:39
Kristen Ahlenius
Yes. Let it be known that they're patties. You don't have to use them as patties, but they are already paddied.
01:46
Peter Dunn
Paddied is a verb.
01:47
Kristen Ahlenius
It is now. Yeah.
01:49
Peter Dunn
Okay, Jeremy. Oh, my gosh. Jeremy makes it back to the program. Good day, Dunn's. Happy belated birthday to both of you. Wow.
01:58
Damian Dunn
I think he's 35,000ft right now. He's just tapping using that in flight WiFi captain.
02:05
Peter Dunn
Good to be with you, Danza. Hello. All right, everybody, were actually just going through the show schedule for the holiday. So, Kristen, what did you decide?
02:17
Kristen Ahlenius
That we're going to record a show next week for it to air the following week and then we'll be off the last Friday of the year, whatever that date is.
02:29
Peter Dunn
I wasn't listening. My daughter's texting me, trying to get me to buy SZA tickets because there's a tour and so she's texting me in class. Right now she's at school and she's very upset in class.
02:44
Damian Dunn
Would you go to a SZA show?
02:46
Peter Dunn
Here's the thing. I feel like being here's. What? I'm okay, you asked. You're going to get answer. I think I'm going to try to find a way to get tickets to a scissors show, like in probably Chicago or like there's one in Columbus, Ohio, I think. I'll go. I hate know, but I'll go. I'll take my daughter. The problem is she wants to take a friend. I don't want to drive to Chicago with her and her friend and then take her friend home at three in the morning. It's just like that starts to fall apart.
03:17
Damian Dunn
Do rock and paper still open.
03:21
Peter Dunn
That's like a good dad joke. Did you get it because of scissors? Rock, paper, scissors.
03:26
Kristen Ahlenius
Got it.
03:27
Peter Dunn
Kristen got it. Anyway, Kristen, what are we doing for the holiday?
03:31
Kristen Ahlenius
What do we, really quickly, have you tried to buy concert tickets to anything lately?
03:36
Peter Dunn
I've never bought a concert ticket.
03:39
Kristen Ahlenius
Are they already on sale?
03:40
Peter Dunn
They sold out. That's what she just texted me. I'm going to buy them secondhand market. Anyway, she was like, oh, can you get online? Will they go and say, I'm like, no, I'm employed. I'm not going to sit online and wait to buy a pair of scissors tickets. Pair of scissors.
04:02
Kristen Ahlenius
Okay.
04:02
Peter Dunn
What's the show plan for the next.
04:04
Kristen Ahlenius
The show plan is that we're here next week, which is the 23rd Christmas Eve. We will record a show. We will not record the 30th, but.
04:14
Peter Dunn
We'Re going to send the show to the radio station for the 30th and do a best of on Christmas Day. Brian Pankins makes it. My man. How are you? I still owe Brian a shirt. I have a shirt here for Brian. And now I'm getting more texts from Ali saying I'm sad. It's okay, I'm on the radio.
04:41
Damian Dunn
And now you are, too.
04:42
Peter Dunn
And then actually, I'm going to take a picture right now of being on the radio. Wave, Kristen. Here we go. Okay, good visuals for the podcast group. Okay, there we go. Okay, let's do a show today right now. What's the topic? What's the first topic?
05:06
Damian Dunn
Isn't it? Fed Funds rate.
05:07
Peter Dunn
There we go. Thank you.
05:08
Kristen Ahlenius
Yeah.
05:10
Peter Dunn
Guys, look. Brain's shutting down. Long week. A lot of holiday cheer. Didn't get a lot of sleep last night. Okay, here we oh, not ready. Podcast just clicking off. Ollie says, oh, hey, queens. That's what she just put. Sorry, Dave, I've been called worse. Yeah. 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. Joining me, as always, is Miss Kristen Alanius, also known as Misalignous, and Damian Dunn. Mr. Damian Dunn. Damien is the vice president of advice at Your Money Line, and Kristen happens to be in his department as the director of education here at Your Money Line. I happen to be the talent on air talent. That is my job here at Your Money Line. Hi, people.
06:11
Damian Dunn
Hello, person.
06:13
Peter Dunn
All right, everybody. So, Dame, the Fed disrupted everyone's lives in sort of a passive aggressive way this week by raising the Fed rate yet again. And we hear this a lot, it disrupts the markets, it disrupts people's plans. But I thought we would just press reset and really take some time to understand. What does that all mean? What happened? Let's reset for everyone that just sort of hears it and doesn't actually know what it means.
06:42
Damian Dunn
I think we need to start with a little basic understanding of what Fed funds rate actually is that's the rate that banks lend to each other for overnight rates, stuff like that. So the Fed funds rate isn't something that you deal with directly, right? Kristen correct. So there is something that you do deal with directly, which is kristen the prime rate. Correct. Which is affected by I feel like.
07:13
Kristen Ahlenius
I'm taking a final exam.
07:15
Damian Dunn
It's close, it's close.
07:16
Kristen Ahlenius
The prime rate is impacted by the Fed funds rate.
07:20
Damian Dunn
Correct. So when you hear all the news about the prime rate going up or know, years from now going down, that's great, but it doesn't really impact too much of your life other than indirectly. Once that prime rate starts to change, though, this is where things get crazy. That's going to impact all sorts of variable rates. Credit card rates are going to have been going up dramatically for the last months at this point, potentially private student loans, some of those are variable, right? So there are direct causes with rates that are already existing in your life. But then there's those big ticket items that you're potentially shopping for houses, cars, that dream vacation that you can't put a price on, right? Pete no. So there's other stuff out there that you may be buying soon that are getting impacted by the Fed funds rate indirectly, by being impacted by the prime rate.
08:27
Peter Dunn
And why does it affect the stock market?
08:29
Damian Dunn
Dan so as rates go up, companies are going to be impacted because they think that's going to contract the economy. It's going to take some money out of the economy. There's going to be less spending going on. So as businesses start to make their forecast for the next year or so, they're going to say, well, we're probably not going to sell as much because there's not going to be as much money to go around. And we're not going to expand our businesses. We're not going to spend more money because it's expensive to do right now and we don't know what revenue we're going to get. Well, gosh, if we're not going to have that much revenue, maybe we're going to have to cut back on some of our employment because we just don't think we need that much labor to create the products that we have planned.
09:11
Damian Dunn
Well, you can see how that starts to work. There's less money in the market to start with. Companies say we don't need as much labor and now there are folks that don't have jobs. So changing rates can have a huge trickle down effect on your day to day.
09:30
Peter Dunn
And you probably said this, but Kristen was distracting. Does why does the Fed do it? Do they do it to slow down commerce, thus try to tamp down inflation? Is that theory?
09:46
Damian Dunn
They're trying to slow down the cycle of money? Essentially, they want to stop them from changing hands as much. If that means they take a little bit of out of the economy after putting trillions of dollars into the economy, then that's what they're going to try and do because otherwise we're going to continue to have inflation. As money continues to be easy to get and people spend it, that's going to drive prices higher and higher. So they've got to find a way to slow it down. And Powell himself said that it's likely that the employment rate is going to have to unemployment rates going to have to go up before they can start considering slowing the rate heights down.
10:26
Peter Dunn
So, Kristen, I have this dumb question that I think that you could probably answer because you're smarter than I mean, is there a scenario in which if we go into a recession because of what is happening and interest rates are still going up, that the government issues stimulus payments, which then almost negates the solution that is a recession? And no one loves to hear that a recession is a solution, but a recession is a solution. It's just a painful one. Kristen see that could be possible, right?
11:04
Kristen Ahlenius
I guess. I mean that's kind of my biggest fear because we've collectively set this precedent. We can agree or disagree about whether the stimulus was necessary. It happened and now we're feeling the aftermath of that. And my fear is that now have we established this baseline? I hope that's not true, but could be.
11:26
Damian Dunn
I suppose five years ago this never even would have crossed our minds that stimulus checks could have potentially been an option. But it seems like that would be counterproductive at this point. That doesn't mean that I haven't read articles that some states or counties and cities are considering it, maybe West Coast biased on there. So it'll be really interesting once you start getting different organizations of government with different views on how things should be handled, potentially throwing out competing monetary policies.
12:01
Peter Dunn
But didn't the state of Indiana just issue a they didn't call it stimulus. They just called it I don't even know what they called it. They called it like an inflation payment or something like that off of the surplus. So isn't that the same thing?
12:13
Damian Dunn
I mean, returning your tax dollars to you, I think is a little bit different than just creating money out of thin air.
12:19
Peter Dunn
That's fair. I mean, I think it's just semantics, but yeah, sure.
12:25
Damian Dunn
The end result is the fact that there's additional dollars in people's pockets to spend. Absolutely. I feel a little bit better about money not being punched into a computer and created for nothing. So I don't think it's not increasing the money supply, it's just increasing the dollars that are available to be spent by a consumer versus a government.
12:47
Peter Dunn
Kristen, I know this is Dame's favorite question, so I'm going to ask you, with the 2024 presidential elections looming, how do you think that impacts what happens in the next 18 months as it relates to true White House policy? Economic policy in relation to coming out of a recession.
13:15
Kristen Ahlenius
I hope that we don't see more things like the fight for student loan forgiveness. Right. I think the principle there is what I am concerned about collectively. But I don't know. I don't like any of it. I'm shaking my head just like Damien is.
13:34
Peter Dunn
Dame okay. It's your favorite question. I guess I should ask it of you. Who me?
13:38
Damian Dunn
The cynic on why things are done.
13:41
Peter Dunn
Exactly. Make everyone sad. Dame, it's your platform. Have at it.
13:47
Damian Dunn
I think things are going to be pretty status quo between now and 24 election. I really do. I think the boat is too far away from the shore at this point and they're committed. It's going to have to run its course.
13:59
Peter Dunn
What did you say in our executive meeting the other day? You had some little idiom like that.
14:02
Damian Dunn
That had camel's nose got in the tent.
14:06
Peter Dunn
Yeah. Have you heard that one? Kristen dave, do you have a book of these things?
14:10
Damian Dunn
No, I don't.
14:13
Peter Dunn
I'll just say this. Dame, I really believe that. See, I had this social studies teacher in high school named Howard Buckwalter. He was like 118 years old at the time and he had all these like duck on a June bug. He had all of these sorts of phrases and I think that you are him is what I'm saying.
14:32
Damian Dunn
If I would have been a teacher, social studies is likely what I would have taught. So maybe I am channeling my inner Howard.
14:39
Peter Dunn
Kristen, what would have been your high school subject you would have taught?
14:44
Kristen Ahlenius
Probably math.
14:45
Peter Dunn
Fantastic. All right, coming up after the break, we're actually going to play a little bit of a game and it's who is most affected by the fed. That's all next right here on the Planner show. Not Pete the planner. Is that what the game show is? Have been. I'm trying to think what kind of teacher I would have been. A I don't know anything. I don't know. I would have been like the in school suspension teacher. It's an assistant football coach but they work at the school. That's what I would have done.
15:25
Damian Dunn
You would have been a good speech teacher.
15:27
Peter Dunn
I could have been a speech teacher, yeah. Craig P. Anderson is going to be an English teacher. I've told this story before. I know. Dame at least knows it. We have a new coworker who, his first year in college, went to William and Mary. And it reminded me of the time my freshman in high school English teacher, I expressed to her that William and Mary was interesting because we'd just been on vacation and went on the campus, and I was like, I would love to go to William and Mary. And on parent teacher night she looked my parents in the eyes and she said, peter is not William and Mary material. Which A, is true. I mean, it's really true. We're being honest. Number two, though, that's a bit harsh for a teacher to deliver to a freshman parent. By the way, I was in advanced English.
16:23
Peter Dunn
That's harsh.
16:24
Damian Dunn
No, I mean, Mrs. Advice may have had a teacher tell her in junior high that she'd never amount to anything.
16:32
Peter Dunn
Really?
16:32
Damian Dunn
Yeah.
16:33
Peter Dunn
Of everyone I've ever known, the second you meet your wife, you realize that she's amounted to a tremendous amount. That's incredible.
16:42
Damian Dunn
By the way, she might have taken great pleasure in letting that teacher know that she got accepted to Notre Dame when she was still in high.
16:51
Peter Dunn
You know, Kristen, I don't mean you being the female voice of this show. You don't see teachers crap on girls as much as maybe crapping on boys. Right.
17:06
Kristen Ahlenius
I had a teacher tell me I was a waste of talent in high school Christmas.
17:12
Peter Dunn
Who are these people?
17:13
Kristen Ahlenius
I'm just saying.
17:17
Peter Dunn
Jeremy from 30,000ft is really stirring it up. Damien and Kristen, did Pete ever get you that dozen donuts from the bet about Kristen watching the show on her day off? No, I haven't, but I have to say I was swindled when I quit college football. I went and told my offensive coordinator, by the way, this sounds like a flex that I played college football. But I went and I was like, hey, man, it was D three, okay? It was D three. So they had to love it. And I was like, I don't really want to do this anymore. And he's like, I just need you to know that if you quit, you will be a loser and a quitter for the rest of your life. And I was I i had the sensibility at the time to like I left that meeting. It was just laughing.
18:07
Peter Dunn
I was like, you think if I quit division three football, I'll be a loser and a quitter for the rest of my life? It's like, why would a teacher or coach saying, are they supposed to be motivating? Like, Dane, why did this person say that horrible thing to your wife? Or who wasn't your wife when she was in middle school?
18:25
Damian Dunn
No.
18:25
Peter Dunn
Yeah.
18:26
Damian Dunn
Be weird and illegal. I don't know. I think there was some hard feelings there for a few reasons that weren't due to her.
18:37
Peter Dunn
Dame is any, so Kristen was told that she's a waste of talent. I was told I'm a loser and a quitter. Your wife was told that she would never amount to anything. Dame, have you been ever told?
18:47
Damian Dunn
Just that I'm amazing and fantastic and I don't do anything wrong.
18:52
Peter Dunn
That's believable. Gosh.
18:56
Damian Dunn
By the way, a camel's nose under the tent or in the tent is a situation where the permitting of some small act will lead to a larger undesirable act or circumstance.
19:09
Kristen Ahlenius
You lost me at isn't that just a logical fallacy?
19:14
Damian Dunn
I guess if you want an entire camel in your tent, then sure.
19:19
Peter Dunn
Kristen, this holiday season yes. Is there an item, a gift that you're hoping that a loved one gets you.
19:29
Kristen Ahlenius
Yeah, if I'm being for real.
19:32
Peter Dunn
Yeah, for real is what we are.
19:35
Kristen Ahlenius
I don't even want to admit this on the radio. My kitchen is not well equipped. I own nothing, and I have no pots in my kitchen. I have three skillets. So if I can't make it in a skillet, which you'd be surprised what you can make in a skillet, I don't make it. So it would be really cool if I could have some pots and pans for Christmas.
19:56
Peter Dunn
So Dame, Kristen wants pot for Christmas. What do you want for Christmas?
20:01
Damian Dunn
World peace.
20:03
Peter Dunn
Jeez, your answers are just getting worse. Today started with no one ever criticized you, and now you want world peace. You want any special item or anything for Christmas? This?
20:17
Damian Dunn
No. Mrs. Advice and I are the sort of folks that make it really hard for the other one to shop for each other because we usually just get whatever we need or want in the meantime. So Christmas rolls around and we just stare at each other.
20:31
Peter Dunn
That's it. You know what I want for Christmas is someone to review the podcast and say it's just a show about one of the co hosts talking about how he just buys himself whatever he like. That's what I want.
20:43
Damian Dunn
Rick's not entirely wrong. A blower for the cart would be nice.
20:47
Peter Dunn
I don't even know what a blower for the cart means. What's a blower for the cart?
20:50
Damian Dunn
You don't need to know. It would be some sort of force induction. Typically a supercharger. In this case. Jeremy's got me down cold too.
21:00
Peter Dunn
I like that. Jeremy notes from 30,000ft. He wants some Tangle Ridge if we can find it. What is Tangle Ridge?
21:07
Damian Dunn
Blended Canadian whiskey. That mixes incredibly well.
21:13
Peter Dunn
Okay, well, let's do a show here. What do we just spent seven minutes on that. It doesn't matter. I've had the lightest day I've had in probably four years today. Although I'm getting the sales team is presenting their 2023 plan to me this afternoon, so we'll see what happens. Okay, in three, two, one. Back on the Pete the Planner show. You hear about the fed changing interest rates and you wonder, well, does it really affect you? Clearly it moves the markets a little bit. It may impact you if you're borrowing and stuff like that. But our resident game show creator showrunner Kristen Alanius, has come up with a game or dame, did you come up with a game? Who came up with the game?
22:01
Kristen Ahlenius
Really? Dame did.
22:03
Damian Dunn
I just said this might make a decent game.
22:05
Peter Dunn
Who's hosting?
22:06
Damian Dunn
Kristen.
22:07
Peter Dunn
All right, Kristen, you've got a game. And the game is called who is affected the most? We're supposed to rank people. Understand? Explain what's happening here.
22:17
Kristen Ahlenius
We can do it that way. I just have a list of people who might be at risk in a rising interest rate environment, and we can rank like zero to ten or say this group might be at higher risk than another. We can break that down however the two of you would like.
22:34
Peter Dunn
I think one to ten would be easier because otherwise I'm going to have to remember all of these and stack them. So with ten being very affected, one being not affected.
22:43
Kristen Ahlenius
Correct.
22:44
Peter Dunn
All right, so we'll alternate. Dame and I will guess or debate, and Kristen, give us the first person.
22:54
Kristen Ahlenius
Someone in pre retirement.
22:57
Damian Dunn
We're doing five years pre retirement.
23:00
Kristen Ahlenius
Yeah, we can say five.
23:01
Peter Dunn
Okay. Right. Dame, go first.
23:06
Damian Dunn
I'm going to say that they are going to say there are six.
23:14
Peter Dunn
I say three.
23:17
Damian Dunn
Okay.
23:18
Peter Dunn
Why a six?
23:21
Damian Dunn
I think the market won't recover quite as robustly or quickly as we would hope once this finally all settles out. And I think it's really pretty clear that one of the key markers for these rate hikes to slow down and stop is going to be not only an uptick in unemployment, but also a pretty reasonable pullback in the markets as well.
23:50
Peter Dunn
Totally disagree.
23:52
Damian Dunn
Really?
23:52
Peter Dunn
Yeah.
23:55
Damian Dunn
Give me your rationale, Mr. Dunn.
23:58
Peter Dunn
Okay, here's what I think. I think the market is going to recover quite robustly starting in the fall to the point of I think it's going to be probably tick down, begin the year, then go flat for a while, and then I think it's going to recover. I mean, the last time the market fell like it's fallen this year, the next year was up, like, 34%. So we're down 17% in the S and P 500 as of the 15 December. I don't know. I haven't seen the market today, so I think by the time someone is a pre retiree retires within five years, they'll be recovered, as long as they don't panic.
24:39
Damian Dunn
I want to go ahead and give you a chance to call your shot for SP 500 return for 2023. Right now.
24:49
Peter Dunn
We're not doing that right now. That's not this show.
24:51
Damian Dunn
Are you not feeling quite as confident about?
24:54
Peter Dunn
I have confidence. It's just that's a different show. You can't do episode three before episode one. I mean, we'll get there. That's the first week of the new year. We're all going to guess, and by guess, you're going to guess. I'm going to tell you what it's going to be. That's not investment advice. All right, next one. Kristen? By the way, I feel confident in my answer there.
25:16
Damian Dunn
Dame, I just curious. I'd love to know what economists you're following to try and guide that the skeptical economist.
25:25
Peter Dunn
Okay. Kristen, how about you? What's the next group here?
25:32
Kristen Ahlenius
Someone who works in auto manufacturing.
25:37
Peter Dunn
Okay, it's my turn.
25:40
Damian Dunn
Yeah, it's great radio.
25:47
Peter Dunn
Eight.
25:48
Damian Dunn
I have four.
25:50
Kristen Ahlenius
What?
25:53
Peter Dunn
I feel like this is either great radio, everyone's going, man, Pete is dumb.
25:59
Damian Dunn
Why are we listening?
26:02
Peter Dunn
Wait, where were you on the first one, Kristen?
26:05
Kristen Ahlenius
I was with Pete on both of them, and this one surprises me a lot because Dame, I know you and I follow the same guy on Twitter who is so bearish on the car market across the board. I can't even believe that would.
26:21
Peter Dunn
So, Dave, how in the world are you so low on this one? Because that's absurd.
26:28
Damian Dunn
There won't be any supply chain issues. I mean, markets are going to tighten up a little bit for buying that interest rates will go up, obviously, but.
26:42
Peter Dunn
I'm talking over you now. There's no supply chain issue. So that means lots are going to be filled with cars that aren't selling and then manufacturers are going to shut down production.
26:52
Damian Dunn
You just told me that you don't think the economy is going to get very bad. Why in the world would there be cars sitting on parking lots if the economy is not that bad?
26:59
Peter Dunn
Because the supply economy I didn't see the whole economy. No, Dame, there is a 0% chance that this is moderately okay for the car business. 0% chance. Oh, this is going to make for an amazing radio next year where we're all just picking up the shard predictions.
27:21
Kristen Ahlenius
But what did he tweeted the other day that they had someone with a stellar credit score get quoted at like, 8% for an auto loan? I mean, stellar credit, low debt to income ratio. When you have people like that who can't objectively afford to take out a car loan, how does that industry not suffer?
27:41
Peter Dunn
What's the next one out of control?
27:45
Kristen Ahlenius
Okay, someone who just took out a variable rate student loan.
27:56
Peter Dunn
Two. Oh, it's not my guess. It's Dames. Two.
28:01
Kristen Ahlenius
He's going to say, like, seven.
28:03
Peter Dunn
I know, it's like I mean, would.
28:05
Damian Dunn
I be doing that just to be contrarian?
28:07
Peter Dunn
To give your real answer. Give your real answer.
28:11
Damian Dunn
Who just took out a variable rate student loan? Four.
28:17
Peter Dunn
Okay, so I didn't want to say it a few weeks ago when we talked about this, and I probably did say it and I shouldn't bring it back up. We're talking about adjustable rate mortgages and how the people that had them a few years ago are getting crushed right now. It wouldn't be the worst time in the world that get an adjustable rate mortgage because interest rates are going to fall when this thing all levels out. It's just a matter of when. And from a student loan perspective, it's the same concept. So I don't think it's that big a deal. But don't get an adjustable rate mortgage. You heard it from your daddy. I don't know. Maybe that's a new phrase. Maybe there's a new phrase on the show. Kristen, how's that sit with you? Do you like that one or no?
28:56
Kristen Ahlenius
No, not really.
28:57
Peter Dunn
You heard it from your.
29:00
Damian Dunn
I mean, that's even worse than stay getting money.
29:04
Peter Dunn
There's nothing wrong with stay getting money. It's just not part of your culture. You heard it from your daddy.
29:11
Damian Dunn
It's because our culture is so different.
29:14
Peter Dunn
All right, Kristen, what's next?
29:18
Kristen Ahlenius
Those who are what do I want to say? Large supporters, if you will, of cryptocurrency.
29:27
Peter Dunn
Dame, you got to go first.
29:29
Damian Dunn
Are we doing this with respect to interest rates? Is that what we're still doing or.
29:34
Peter Dunn
Just the Fed rate? Fed rate.
29:43
Damian Dunn
Big supporters. They don't care. They're in it to win it. I don't think they care one way or the other. So because of their ambivalence I'm saying there is zero.
29:52
Peter Dunn
Okay, but we're talking about objectively, not about their view. We're saying our view of them. So do you still think it's zero.
30:02
Damian Dunn
If they're not cashing out? What difference does it make for them if they just let it ride and keep buying? It doesn't impact them?
30:10
Peter Dunn
Yeah, I don't know. I view the question differently, but I'm still pretty low. I think it doesn't particularly impact them much. Kristen, where are you on that?
30:19
Kristen Ahlenius
I think it depends on when they decided to buy in. I think if you were at the top of the wave, then I'm very concerned if you're still all in on this, and as long as it's a small portion of your portfolio, I don't really care.
30:34
Peter Dunn
Yeah, I think we agree on that. You heard it from your daddy. We're just working on okay. Coming up after the break, coming up after the break, do we have more of these, Christian?
30:46
Kristen Ahlenius
We can do only a couple.
30:48
Peter Dunn
A couple more. And then we've got a question that came in the Askpete@peteeplanner.com email address. All that's next right here on The Pete the Planner show. You heard it from your daddy.
31:05
Kristen Ahlenius
Okay. You said that you didn't sleep last night.
31:09
Peter Dunn
I didn't. I had a lot of caffeine this morning.
31:12
Damian Dunn
Is Miguel involved here?
31:14
Peter Dunn
No, but several espresso shots.
31:20
Kristen Ahlenius
Nice.
31:21
Peter Dunn
I had to get some stuff done this morning. Jeremy likes that you heard it from your daddy.
31:31
Kristen Ahlenius
Jeremy, do not encourage this behavior.
31:35
Damian Dunn
Okay?
31:38
Peter Dunn
It's so awful. I hate when people call themselves Daddy. Caitlin doesn't like it. Come on, Caitlin. It is really creepy. Isn't like what's creepy about a man calling himself Daddy to other people?
31:58
Damian Dunn
We lost a listener because of this.
32:01
Kristen Ahlenius
Where do you see how many people.
32:05
Damian Dunn
Caitlin said she's going to log off?
32:06
Kristen Ahlenius
You called her Kristen. She's definitely gone now.
32:11
Peter Dunn
Do you think Caitlin will get you the pot that you want for Christmas?
32:15
Kristen Ahlenius
No, Caitlin already got me a Christmas present and gave it to me.
32:20
Peter Dunn
All right.
32:22
Damian Dunn
It's very nice.
32:23
Peter Dunn
Boy let's do more radio. How many more of these do you have?
32:29
Kristen Ahlenius
I really only have two.
32:31
Peter Dunn
Okay, that's fine. And then we'll go into that second email question.
32:34
Kristen Ahlenius
That's fine.
32:35
Peter Dunn
Okay, let's do it. Three, two, one. Back on the Pete the Planner show. All right, so we're playing a game called how impacted will certain types of people be by the Fed rate's? Interest rate increases. Is that the name of the yeah.
32:56
Kristen Ahlenius
Yeah.
32:57
Peter Dunn
Kristen Lanius, is your. Host kristen, what's up next?
33:02
Kristen Ahlenius
Someone looking to borrow money, whether that's a HELOC, a home equity loan, they need a decent chunk of change.
33:13
Peter Dunn
Damien, it's my turn. Eight.
33:20
Damian Dunn
I was going to say nine.
33:21
Peter Dunn
Okay, sure. Okay, so need is an interesting word, right? There's the desire to borrow money, and then there's the need to borrow money. And this is where if we're going to be criticized for people in privileged positions making assertions about people's financial life, then so be it. But I'll just say there are certain circumstances where people need to borrow money, and they will be an eight or a nine, based on what Dame and I agree on. But there's going to be people who want to buy a house that shouldn't, and that's on them. To go into this scenario in which we are in or about to be in, continue to be in, and then just say, oh, I get all the context of these signs as to why I should not do something, but Daddy's going to do it anyway. I mean, this has to do with the concept of need.
34:21
Damian Dunn
Yeah. It's an incredibly tough discussion to have with somebody. Even harder if you're not having that discussion with somebody else that you know and trust enough to talk about this stuff with. Because if you're leaving yourself to your own devices, you're going to chase what you want, and you're likely going to convince yourself that making a bad decision is okay because you're the exception in the situation and that's just not the case. The rules apply to you, too.
34:53
Peter Dunn
Christy, you're the oh, what are you about to buy?
34:58
Kristen Ahlenius
Well, he kind of threw some shade at me on Tuesday about something similar to.
35:06
Peter Dunn
All right, so how so?
35:09
Kristen Ahlenius
Kristen the shade that he threw was that were talking about real estate as passive income. And I said that though I tell people not to do that. Part of my long term plan is that and Damien was like, yeah, because I'm smarter than you, and he made some.
35:26
Peter Dunn
Wow.
35:28
Kristen Ahlenius
No, but this one specifically, I don't think that their risk is potentially as high as the two of you do, because we all know that I love behavioral finance. If someone can make a payment work right now when the interest rates are really high and can stay relatively on top of that situation, it could yield financial freedom when things start to level out. So it may be really hard in the interim, and someone might feel like they're between a rock and a hard place, but from a behavioral perspective, it could yield benefits long term.
36:06
Peter Dunn
So it just sounds like she's smarter than everybody else.
36:08
Damian Dunn
I think so.
36:11
Peter Dunn
That's a good point. I mean, right, kristen, you're saying you could always refinance the debt plan?
36:16
Damian Dunn
Refinance, essentially, is what I think.
36:17
Kristen Ahlenius
She's alluding, I'm not encouraging you, but.
36:21
Peter Dunn
It could I mean, so it's hard not to think of real estate in this question. Right. It's hard not to think of a home, but have home prices come down enough to justify the increased cost of borrowing and still say it's a good idea? And I would say no, that's why maybe we get there. But then here's the tough part. We clearly are at the if there's home buying seasons, we're not in one right now, and we're going to be in one in about three and a half to four months. And if home prices don't come down during that cycle because interest rates are still rising, then you could find yourself, I think, late summer in the fall where you're buying a lower priced home and you can justify the higher borrowing expense. But we're not there now.
37:12
Damian Dunn
The 30 years actually trickled down a little bit over the last couple of weeks. I mean, not significantly by any stretch, which is OD to me, but the 30 year has come down. It's like six and a third ish somewhere right now for the average 30 year. Kristen has a point. If you can make it work now and you know you're going to be able you don't know you're going to be able to refinance at a lower rate before you move going forward. So I don't know. I'm pretty comfortable with my response.
37:45
Peter Dunn
I will say when I paid my mortgage in person yesterday, that it was really good to see that two and a half percent interest rate at work. Yeah, I'm sorry, that was just out of hand. Kristen is there another group?
37:59
Kristen Ahlenius
Well, we kind of touched on it, but I was going to say someone who has to downsize or someone trying to downsize.
38:08
Peter Dunn
Let me think about that.
38:09
Kristen Ahlenius
So not real estate overall, but someone who's trying to downsize.
38:17
Peter Dunn
I think it's less than maybe you're insinuating. I think it's maybe two or three, because one, they could have enough equity to just pay cash, or two, they could take a break in rent.
38:28
Damian Dunn
Yeah.
38:30
Kristen Ahlenius
People aren't going to do that, are they?
38:32
Peter Dunn
Doesn't make it the wrong idea.
38:34
Kristen Ahlenius
That's true.
38:36
Damian Dunn
I agree with Pete. Ideally, when you downsize, you're going to be able to take the equity that you've got and come away with no or a very low mortgage, and the payment's probably going to be significantly less than what you've got right now, so it would be more than it was two years ago. But it's still going to be reasonable.
38:57
Peter Dunn
Yeah, there's an emergency downsize and then there's just like practical. Totally. And I think they're very by the way, I love an emergency downsize. And in an emergency downsize, kristen you're right. It's probably a seven or an eight in a planned downsize. I don't think it has much of an impact because it's planned. Alas all right, so we did get an email. Is that it? Kristen has that run its course?
39:24
Kristen Ahlenius
Yes.
39:25
Peter Dunn
All right. Thank you for playing whatever that was. We got in at the Askpete@petetheplanner.com email address. We got in at the Askpeed@peteeplanner.com email address. Good day to all. This question is for Kristen. I have a portfolio that is primarily based on index funds, a three fund portfolio, but I do have 5% allocated to Bitcoin in cold storage. I know Pete and Dane probably hate it, but I would prefer to get your opinion. All right, so now people are emailing Ask Kristen@petetheplanner.com. All right, so now people are emailing Ask Kristen@pizzeplanar.com. All right, Kristen, your fanboy Frank has a question for you.
40:02
Kristen Ahlenius
I think it's kind of funny that I have been labeled the one who might be most okay with crypto holdings, because I generally am not. My concern potentially is that depending on who your platform is for your retirement investing or your investing that you're doing, a three fund portfolio might not actually be that diversified. Because if you're investing in three different value ETFs, we have a ton of diversity among value equities, but where's your fixed income? Where's your growth? Where's your international equity? Where's your cash? So there could be tons of diversity, and there probably is in this portfolio, but it might not be as spread out as you might think. That would be my word of caution.
40:53
Peter Dunn
Dam, are we allowed to say anything?
40:55
Damian Dunn
I don't think so.
40:57
Peter Dunn
All right, I'll just act like we are. I have no problem with 5%. None, zero. I don't have a problem with up to 10%, as long as the rest is sensible core holdings. What I don't want to see is 10% in this speculative holding, 10% in another speculative holding. Like, if you're going to have speculative holdings, they have to in aggregate equal 10% at the most. That's my opinion.
41:22
Damian Dunn
Dame, frank didn't ask you, Pete.
41:25
Peter Dunn
I know.
41:26
Kristen Ahlenius
Sorry. Frank.
41:27
Peter Dunn
I like that Kristen's, like, her reputation is, like, young and in touch, but she's just an old biddy like you and me.
41:33
Damian Dunn
I know.
41:34
Peter Dunn
That's the best the old biddy show. Is it bad that I just called Kristen an old biddy on the radio?
41:42
Damian Dunn
I mean, Daddies and Biddies. That's all this is, okay.
41:45
Peter Dunn
That's you cross the line.
41:48
Kristen Ahlenius
We blew past the line. Last segment.
41:51
Peter Dunn
Okay, coming up after the break, biggest waste of money of the week. I think I got a good one. It's the holiday season, there's so many things to waste money on, and this one is exceptionally a big waste of money. And of course, the news, which Dame spends way too much time putting together for a few cheap jokes here and there. All right, coming after the break, boom. Biggest waste of money and the news. That's next right here on the Pete the Planner show. Pete, the planner. All right. Did you say the Daddy and Biddy show or the bidy and Daddy show? What did you say?
42:26
Damian Dunn
Daddies and biddies.
42:27
Peter Dunn
Daddies and bitties. It does somehow seem worse. I don't know how. So it's funny. Up in HQ Two this morning, I went up there and several of our male coworkers were up there, every single one wearing a quarter zip sweater. And then one of our young marketing associates young woman wearing a crew neck sweater, and she just got outdid like, all the dads are wearing quarter zips, and she's wearing a little crew neck sweater. And it was like she didn't get the memo of how the daddies were rolling this morning. Rick Swink says, I can't believe I missed the last segment due to a dumb Internet outage. What are you in our office building?
43:09
Damian Dunn
Does he work in our office?
43:11
Peter Dunn
I didn't. Rick Swinks upstairs. That sounds like us. I think it was awesome. I'll just have to listen to the podcast. I guess you will. It was funny ish. Although Kristen'sister almost disowned her again.
43:24
Kristen Ahlenius
Yeah, no kidding.
43:25
Peter Dunn
All right, so can I state put my flag down and say in 2023, I want a Caitlin Elenius appearance on this show?
43:36
Kristen Ahlenius
You can say it.
43:39
Peter Dunn
We got to make it happen.
43:40
Kristen Ahlenius
I'm telling you, it is never going to happen.
43:43
Damian Dunn
What if we did a pre recorded segment where we could just play a video or something of her making comments?
43:51
Kristen Ahlenius
It's never going to happen.
43:52
Peter Dunn
Okay, you guys want to hear an awkward moment exchange I had with my wife this week? So World Cup is going on, clearly this weekend, 10:00 a.m. Argentina France for the title the Striker. Damien what? The striker is in soccer.
44:10
Damian Dunn
The dude that shoots more or less kicks, whatever kicks.
44:15
Peter Dunn
Anyway, he for France. It's a guy named Jerou Olivier Giroud. And I could pull a picture up, but the point is this he is the most attractive man on the Is. In fact, I think at this point I have to bring it know, I don't have time for that. But I will say he is he's just unbelievably attractive. If I could choose who I would look like, it would be that Frenchman. And I was talking to Mrs. Planner about this, and I was like, he's attractive. She's like, yeah, but he's not my type. And I was like, well, wow, he's unbelievably beautiful. And she said, because when you're that good looking, he would have too many options and you could never trust him. And I was like, okay. And then she goes like, and that's why I like you. And I was like, Wait a second here.
45:05
Damian Dunn
There we go.
45:06
Peter Dunn
Wait a was. How quickly you can get thrown under the bus by just professing your love for a beautiful know.
45:19
Damian Dunn
I think it's interesting that you and Mrs. Planner have different types in men.
45:24
Peter Dunn
Yeah, that's probably good.
45:29
Kristen Ahlenius
I don't have thick enough skin to live in your house.
45:33
Peter Dunn
Oh, man.
45:34
Kristen Ahlenius
There's no way.
45:35
Peter Dunn
Brutal. I will say the funny thing. I was asking Ted what I should get Mrs. Planner for Christmas, and first thing he said, whoa should stop waking her up at 530 because she doesn't like to get up early. And I was like, okay, that's practical. That's good, because occasionally I'll be too loud when I get him ready or something, and then he goes and then maybe some chocolate for romance. My ten year old son's telling me to get my wife chocolate for romance, which is really funny.
46:03
Damian Dunn
I can't wait for his first album to drop.
46:05
Peter Dunn
Oh, man, it was funny. Okay, let's do DA. Here we go. In three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is Dainson, booze and mint toothpicks. They say variety is the spice of life, and it's also the reason. Is that a thing? Anybody speak French? Risen detre for dainson's. Every blend pack included are warm and spicy cinnamon, mint toothpicks, their mint number nine toothpicks with a mix of cooling sweet ingredients and both their single malt and bourbon toothpicks. The latters start out as wood forward before the intricacies of the spirits start to emerge. Great. For after dinner or anytime a burst of flavor is desired. They come in a gift box with the four bottles of twelve toothpicks each. So, Kristen, since you're so talented at these guesses so good, what do you believe 48 toothpicks cost?
47:22
Kristen Ahlenius
I feel like they have to be like $2 apiece, which makes them $100.
47:27
Peter Dunn
All right, Dame, I was going with.
47:30
Damian Dunn
The same rationale, so I'll go up and I'll say 125.
47:34
Peter Dunn
Well, apparently this is the bargain of the year at $32. But I mean, $32 for 48 toothpicks? Still a lot.
47:43
Damian Dunn
Maybe it's not. Maybe they're worth every penny.
47:46
Peter Dunn
So I can get down with the idea that the cinnamon and the mint toothpick is enjoyable. And as much as I bourbon, I can't imagine a bourbon toothpick would deliver what I'm looking for.
48:03
Damian Dunn
No, that seems like a bad idea.
48:07
Peter Dunn
So anyway, Dame, what is in the news this week?
48:11
Damian Dunn
You know what they say, Pete, timing is everything. Strike while the iron hot. Well, that all goes out the window when we're talking about former President Trump and this new NFT line of trading cards. That's right. If you're looking for a last minute stocking stuffer for that little Alex P. Keaton in your life, you might consider a $99 NFT trading card featuring the former POTUS as a superhero, a wild west sheriff, an astronaut, a race car driver, or maybe a border patrol agent. Anyway, it's a horrible idea. Regardless of your politics, don't spend your money on it, please.
48:51
Peter Dunn
Dame, I was watching the announcement video of that this morning, and I was just thinking to myself, I was like, I wonder if Dame will make this a news story. Because again, regardless of your was, it's a very interesting idea. Maybe is the best way to put it.
49:13
Damian Dunn
That's kind so you can buy an.
49:16
Peter Dunn
NFT of the former president as a border patrol agent.
49:20
Damian Dunn
I didn't look at all the pictures. The one looked like it had desert tan kind of outfit on maybe a plate carrier in the front and a shotgun.
49:35
Peter Dunn
Now, here's the weird point of distinction here for me, at least. Let's say President Trump did like a commemorative plate set or a commemorative coin, and it was $99. This is a non story, then, right?
49:54
Damian Dunn
Boy.
49:57
Peter Dunn
It does different taste.
49:58
Damian Dunn
Yeah, that's not a horrible point. You've got something tangible, though, at that point.
50:03
Kristen Ahlenius
Exactly.
50:05
Peter Dunn
Yeah, I think it's the NFT factor here.
50:08
Kristen Ahlenius
Yeah. Somebody comes to your house and you show them the thing that you like. How do you share an NFT with someone without them screenshotting it and stealing?
50:20
Peter Dunn
Know? I don't know. This is an interesting question. I didn't think we'd spend this much time on this story, but, yes, interesting, compelling. Not for me. But look, if I were a big Trump guy, a commemorative plate makes sense. You would buy a commemorative plate, but a commemorative NFT makes no sense to me.
50:39
Damian Dunn
It seems like I'm dating myself here, and I think, Pete, you'll come along for this ride. Do you remember seeing stuff like that on TV, those commercials when were younger? Like, buy the commemorative coin set for whatever it is, Franklin Mint and all that, and somehow that has more validity than an NFT.
51:02
Peter Dunn
I'm with you. What else is on the news?
51:06
Damian Dunn
Federal prosecutors in the SEC have accused seven popular Twitter and discord users of wielding social media to manipulate stock prices, pumping the shares, and then selling off mass quantities for a profit. They rose. An additional defendant whose Twitter handle was At Dip Deity, was charged with aiding and abetting the alleged fraud for hosting a podcast that featured and promoted the seven influencers as skilled traders to follow. Each influencer charged had well over 100,000 followers, and according to the SEC, the group earned about $100 million in the scheme.
51:41
Peter Dunn
Daddy, no. Likey, two things. Yes.
51:46
Kristen Ahlenius
One, I'm not saying that they shouldn't be held accountable, but I fundamentally do not understand the difference between what they did and what people on CNBC do. I do not get don't understand.
52:01
Peter Dunn
Okay, so if you want to take that a half step further, how is it different than what Elon Musk did on a regular basis?
52:10
Kristen Ahlenius
I don't get it.
52:12
Peter Dunn
No, Dame, I think you and I agree on oh, I don't know, pretty much everything. This is one of those topics of which you and I have been banging the drum on for years of how social media leads to stock manipulation on the biggest levels. And, yes, these people should be in jail. Yeah.
52:40
Damian Dunn
It'S horrible. People have figured out a way to generate viewers or followers and then leverage that for their own financial gain in an illegal way. If you're selling something, that's one thing. But in this case, you're literally just getting people to chuck their money into the markets to raise the price of something you own. Then you bail, and they're left holding the bag. It's horrible. And they should be punished.
53:07
Peter Dunn
I know I'm from the Midwest, but there's another angle to this that just seems like the wrong thing to do to screw all the people that buy, like, the old pump and, like, they're just screwing all those people. Can you say that? I don't know what you're allowed to say. On. I mean, I guess I'm being Pollyanna.
53:28
Damian Dunn
I guess you're showing that you have a sense of morals. So congratulations, go figure.
53:35
Peter Dunn
Daddy's got morals.
53:40
Damian Dunn
A new Goldman Sachs report found that eight out of ten retired women said they get less than 70% income now compared to their pre retirement days. In comparison, 70% of men reported the same. Generally speaking let me say that again, 80%. They changed the numbers. Eight out of 1080 percent of women said they get less than 70% of income of their pre retirement income during retirement.
54:09
Peter Dunn
On I'm confused.
54:11
Kristen Ahlenius
I'm really confused. Are they saying women have less money in retirement?
54:16
Damian Dunn
They have a higher percentage of their pre retirement income than men do?
54:20
Peter Dunn
It's because of the pay gap, isn't it? No, because then their investments would what's the takeaway? Maybe I'm tired.
54:31
Damian Dunn
No, I wanted to discuss this to see if we could come up with what could possibly be driving this, because it didn't come to a good conclusion. It was just kind of a little stat there, so I thought maybe we would unpack it a little bit.
54:42
Peter Dunn
Okay.
54:42
Kristen Ahlenius
Men are better investors.
54:45
Damian Dunn
Do you say women are better investors or men?
54:47
Peter Dunn
Yeah.
54:47
Damian Dunn
Okay. I thought maybe you said man. I said that is definitely not heavens, no.
54:52
Peter Dunn
But what they're saying is more women report less percentage of their income in retirement.
55:02
Damian Dunn
Saying.
55:05
Peter Dunn
This is a great news story.
55:06
Damian Dunn
I picked the wrong week to drop this news story on you. I'm sorry. Had I known that caffeine was included in your preshow routine, I would not.
55:15
Peter Dunn
Have this is a fair point, though, that sometimes these studies that come out, they're almost like data looking for a conclusion as opposed to just like data. I don't know, I'm struggling to figure out what that could mean because it's not the pay gap. Because it's all a percentage anyway. If they lived at a certain level. I don't know. The show's over. I mean, that's the thing. It's like. Good choice, Dame. It's a great ending to the show. Hey, everybody sending you good vibes because good vibes are all that's in Daddy's budget. Thanks for listening. Hope you have a good holiday season and we will see you soon. This is the I don't is my brain not working?
55:59
Kristen Ahlenius
I don't get it either. There's too many percentages.
56:03
Peter Dunn
Okay. No, let me see if I least can repeat it back. 80% of women report receiving less than 70% of their income in retirement, as opposed to 70% of men report having less than 70% of their income in retirement. Is that part right?
56:20
Damian Dunn
Yes.
56:20
Kristen Ahlenius
Well, then that means women are worse off.
56:23
Peter Dunn
Yes, that's why I was saying I thought it was a pay gap thing. But that can't be that because less pay it would level itself. What's the conclusion?
56:34
Damian Dunn
I don't know.
56:37
Peter Dunn
Rick says the conclusion the study was an unnecessary waste of the I got to this is going to ruin the rest of my day, Dame. I can't think of what it would actually be.
56:54
Kristen Ahlenius
I don't get it.
56:56
Peter Dunn
If anyone knows what this is trying to say, did the article give any conclusion?
57:01
Damian Dunn
It might have, but I couldn't be bothered to read to the end.
57:04
Peter Dunn
That's fair.
57:05
Kristen Ahlenius
Excellent. It's almost like they were making the data to some degree, say what they wanted it to say. Kind of like an ESPN statistic.
57:19
Damian Dunn
I mean, it was a Goldman Sachs study, so you know how there had to be angle somewhere it could speak.
57:25
Peter Dunn
To the frugality of women. Good, because they wouldn't mean what you're saying is one group conceivably wouldn't need as much. Oh, man. Thanks, Dame. Thanks.
57:41
Kristen Ahlenius
Do you send me the article if.
57:43
Damian Dunn
I can find it. I just have like the little piece.
57:45
Peter Dunn
That I cut out, so it's just going downhill. All right, Kristen, have a good weekend. I know that you've got pretty many Christmas. And Dame, may you have a weekend filled with bourbon soaked toothpicks.
58:06
Damian Dunn
I can't wait.
58:08
Peter Dunn
All right, so you guys, neither of you know anything about world football? Kristen, who wins the world cup?
58:13
Kristen Ahlenius
I don't know. Who's in it?
58:15
Peter Dunn
France and Argentina.
58:16
Kristen Ahlenius
Oh, France.
58:19
Damian Dunn
Dame pulling from messi.
58:22
Peter Dunn
I'm pulling for messi. I think France wins, but I'm going to call my shot here. I do think Argentina gets a lot of calls.
58:31
Damian Dunn
Probably, yeah.
58:32
Peter Dunn
If you've watched the world cup, argentina has gotten a lot of calls in the box, which means they're going to get penalty kicks. Kristen's head spinning. And that means they're going to give Messi some goals.
58:44
Damian Dunn
I do have a question for you. I noticed in France's last game that the numbers were gold on their back. Does every world cup defending champ get to use gold on their uniform or is that just something that France did?
58:56
Peter Dunn
I think as far as I know, it's just something that France did. What you will notice on the uniform is their stars based on how many world Cups they've won on the front of the uniform. So France yeah, it we'll see what happens. All right, everybody, no one cares. Good day to everyone and stay getting money. Bye.
