Today high yield bonds are in the spotlight. A recent Wall Street Journal piece details how you can get eight percent currently in the bond market (which is a rate most stock investors would be happy to lock in). Why may this NOT be a good deal? Well, first you have to understand how bonds work. So, we’ll explain that. Second, you’ll have to understand the difference between buying a bond fund and a single bond. So, we’ll also explain that. Third, we’ll have to explain how many investors lose money because they don’t understand concepts such as “risk premium.” So, happy, we’ll show you what that means. It’s all things bonds on today’s show!
But that’s not all. Stacker Tom asked a GREAT question in the Stacking Benjamins basement the other day, because it’s SUPER complicated. He asks about IRMMA, RMDs, and Medicare. Huh? We LOVE this question because it shows the depth of knowledge you’ll need to have to get everything right…but also shows you how you do NOT need to know everything today/right now/immediately. We’ll explain all of these terms on today’s show (and also illuminate how frustrating the world of financial terms can be during our TikTok minute).
Deeper dives with curated links, topics, and discussions are in our newsletter, The 201, available at https://www.stackingbenjamins.com/201
Enjoy!
Our Headlines
- Risky Bonds Join the Everything Rally (Wall Street Journal)
Doug’s Trivia
- Who wrote the song “White Christmas?”
Better call Saul…Sehy & OG
- Stacker Tom asks When NOT to avoid IRMAA?
Have a question for the show?
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- Check out The 201, our email that comes with every Monday and Wednesday episode, PLUS a list of more than 19 of the top money lessons Joe’s learned over his own life about money. From credit to cash reserves, and insurance to investing, we’ll tackle all of these. Head to StackingBenjamins.com/the201 to sign up (it’s free and we will never give away your email to others).
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Tune in on Friday when we discuss is being responsible with your money making you miserable?
Written by: Kevin Bailey
Miss our last show? Listen here: How To Become a Financial Mutant – with Brian Preston (SB1523).
Episode transcript
[00:00:00] Speaker: Hello, [00:00:03] Speaker: honey, I’m at the mall now and I found this beautiful leather coat. It’s only a thousand. Can I get it? [00:00:10] Speaker: Well, sure if you like it that much. [00:00:12] Speaker 2: Okay. Um, I also stopped by the Mercedes dealership and saw the new model. You know, the one I really like. How [00:00:18] Speaker: much? [00:00:19] Speaker 2: 120. [00:00:21] Speaker: Well at that price, I wanted to put all the options. [00:00:24] Speaker 2: Great. Oh, and, and one more thing. The house we wanted last year is back on the market. They’re, they’re asking 1.5. [00:00:32] Speaker: We’ll make them an offer, but come in at, uh, 1.4. [00:00:38] Speaker 2: Okay? I love you, baby. [00:00:40] Speaker: I love you too. Okay, [00:00:41] Speaker 2: bye. [00:00:43] Speaker: Um, does anybody know whose phone this is? [00:00:53] Speaker 3: Live from Joe’s mom’s basement. It’s the Stacking Benjamin Show. [00:01:08] Speaker 3: I am Joe’s mom’s neighbor, Doug, and on today’s show, the stock market is sky high. And it’s summertime. What could be better? How about an 8% rate of return on your money without being in the stock market at all? Too good to be true? We’re gonna talk all things bonds on today’s podcast, plus get ready for a TikTok minute to remember and we’ll answer a question from one stacker who thought, you know what? [00:01:31] Speaker 3: I’d better call Saul, see hi at og, and then I’ll share some pen trivia. And now a guy who gets. All the credit for Stacking Benjamins and the guy who’s the brains behind the scenes. I’m gonna let you decide who’s who. It’s Joe and oh G. [00:01:54] Speaker 4: Happy Wednesday stackers. And you know what? On a week like this, I bet you’re exhausted that it’s Wednesday. I mean, oh gee, they had Monday off. I always find these four day work weeks. I get to Wednesday, I’m like, why am I still working? [00:02:07] Speaker 5: Wait, you guys are working on Fridays? Like what? Three day work week, bro. [00:02:11] Speaker 5: Get with the times. It’s summer, [00:02:13] Speaker 4: summer. Summer, summer. So wait, so it means for you that it’s, it’s usually a three day work week, or this week is a three day work week. Correct. On both accounts. He’s lying through his teeth. He hasn’t worked any days. That’s right. Well, there’s that. Welcome to the Life of OG Podcast Life with your Feet Up. [00:02:33] Speaker 4: We got a super show. Today we’re gonna dive into, uh, a headline all about Bonds, just because I wanna see that vein in OGs Forehead Get really big. Like that would be absolutely super. So if you’re not familiar with how bonds work, and if you’ve never seen vitriol in Action, you’re about to get both on the same podcast today. [00:02:52] Speaker 4: But before that. To make sure that, uh, we keep this podcast free, we partner with some fantastic sponsors so that uh, you don’t have to pay for it. And the good news is it also, as always, keeps the second half of this show ad free. So let’s take a moment and dive into our sponsors. Big headline today, TikTok Minute am more. [00:03:14] Speaker 4: So let’s get moving. [00:03:15] Speaker 6: Hello darlings. And now it’s time for your favorite part of the show, our Stacking Benjamins headlines. [00:03:22] Speaker 4: Our headline comes to us from the Wall Street Journal. This is written by uh, Vicki Gee Wang. And Vicki writes. Risky bonds join the everything rally and uh oh gee. There is a picture of an investor with a nice tie on and they have a balloon and they’ve got hearts and they are flying sky high because of wait for it. [00:03:43] Speaker 4: The bond market. If the US economy is headed for trouble, Vicki says, no one told the junk bond market the premium that investors demand to hold debt from sub investment grade companies instead of relatively safe treasuries has shrunk to near pandemic era Lows assign a dwindling worries about an economic slowdown that would cause a big jump in defaults and bankruptcies. [00:04:06] Speaker 4: Low rated debt’s been swept up in a broad market rally fueled by signs of cooling inflation. Hopes for interest rate cuts attracted by yields. Listen to these yields guys. Attracted by yields of around 8%. Investors have added a net 3.7 billion into junk bond funds so far this year, according to Refinitiv Lipper, the first inflows in that period since 2020. [00:04:27] Speaker 4: So investors now OG, getting back into the junk bond market. I think we gotta define how this works for people, because most of our stackers not that familiar with the bond market. So I want to talk about this first. Let’s define what a bond is, how it works. Difference between buying a bond and buying a bond fund. [00:04:44] Speaker 4: And then let’s end off with YOG. Still thinks this might be a bad idea. [00:04:50] Speaker 5: Do you guys remember the movie? Uh, I think it was Wedding Singer, the Adam Sandler movie. Okay. Adam [00:04:55] Speaker 3: Sandler. Sure. Drew Barrymore [00:04:56] Speaker 5: nineties ish. Yeah. There’s a scene in there where he’s talking about, and I don’t know if it’s the friend, somebody getting married. [00:05:02] Speaker 5: I don’t know what the whole storyline is. I can’t remember, but he talks to somebody and he’s like, oh, so you’re in a. You’re in junk bonds. He goes, excuse me, high yield bonds. [00:05:15] Speaker 4: It is almost like, uh uh What’s the radio company that changed their name? iHeart Media. iHeart Media used to be Clear Channel and they changed their name a hundred percent because people hated Clear Channel so much. I think, uh, junk bond people OG said, Hey, uh, this junk bond thing, low grade. Hmm. I don’t like that. [00:05:35] Speaker 4: Low quality. No. Yes, high og. How do I get 8% in a bond? Tell me how I’m getting 8% on a bond. [00:05:43] Speaker 5: Right? The difference between a bond and a stock is really around are you owning the company or are you lending money to the company? Those are the two. Ways that you can basically invest, so to speak in an organization. [00:05:56] Speaker 5: And sometimes that organization is the US Treasury and you buy treasury bonds and sometimes it’s apple and you can buy apple bonds or you can buy apple stock, right? So investors have to decide whether or not they want to own the company or they wanna lend money to the company. The risk return of both of those things are completely different. [00:06:15] Speaker 5: Think of it this way, if you borrow money from the bank, if the bank lends you money. They only generally do so if they have what? Muddy L collateral. Yes, correct. Collateral. So, exactly. I knew you had it. Um, that’s exactly what I would say. So the difference between you getting a mortgage at 4%, or today’s rates seven, let’s say, and borrowing money on your credit card, which is completely unsecured, is 22, 20 3%. [00:06:43] Speaker 5: Right? So there’s a difference in risk profile with that type of debt. And the reason that it’s different is because it’s secured by different things. So now look at the difference between the United States Treasury, which can tax you into oblivion and always can raise money, versus insert company here that has, you know, whatever their balance sheet looks like and so on and so forth. [00:07:05] Speaker 5: US Treasury lend money and you are guaranteed to get that money back by the US government, and the day that they stopped doing that would be a really bad day for the worldwide economy, right? So we’re pretty confident in the US government. We’re maybe not so confident in the ice cream shop down the street. [00:07:20] Speaker 5: So to lend money to those two different institutions, the government or to the ice cream shop, you get a better return if you’re lending money to a riskier place. And so a junk bond or high yield bond, if you look at it and say, well, why is this one paying eight and the treasury is paying four? It’s because one’s riskier than the other. [00:07:40] Speaker 5: There’s a bigger chance that you’re not gonna get your money back on this one than the other one. It’s just purely that simple. [00:07:47] Speaker 4: Yeah, it is all about the, uh, you know, like when people loan you money, og, it’s like they look at your credit [00:07:51] Speaker 5: ratings, right? It’s a complete crapshoot. You have no idea whether or not you’re gonna get your money back if you lend it to me. [00:07:58] Speaker 3: But what if the ice cream’s really good? [00:08:00] Speaker 4: Yeah. Well, no, that’s a good point. Point. The product don’t, don’t loan the money for the factory, right? Well, it’s that, I don’t know if I’m mixing the analogy. [00:08:08] Speaker 5: Yeah. Doug’s kind of being a little tongue in cheek. Ice cream in cheek. I don’t know. Anyways, you know, a little bit of like, well, what happens if it’s really good? [00:08:15] Speaker 5: Well, guess what? Then that would show up in your profitability of the company. If it’s a really good ice cream company, you’re gonna make more money, which means you have better reserves and you have a better balance sheet. So now the cost of you borrowing money is gonna go down because you’re a more, uh, proven entity, right? [00:08:31] Speaker 5: Versus the new place down the street. But then you look at the hierarchy of those things. If I lent money to an organization, it’s sometimes secured by the good faith and credit of the organization. Sometimes it’s secured by the property, sometimes it’s secured by the manufacturing equipment, whatever, right? [00:08:47] Speaker 5: There’s some sort of thing that I can go, you know, you don’t pay your bill, you don’t pay your loan back. I can go take a tractor, you know, instead or whatever. Versus owning the company or, or investing in the company. Where do you fall? If you’re an investor, where do you fall? If the company goes outta business? [00:09:02] Speaker 5: Are you at the top of the food chain to get paid out or at the bottom? You’re at the bottom. If you’re an investor, yeah, you are dead last, right? You are the last person to get paid out because you have the biggest opportunity for growth. There’s the two sides of that equation. If you lend money to somebody or you lend money to an organization, you’re higher up the food chain in terms of if this thing goes belly up, you’re more likely to get paid out versus being an investor in the company. [00:09:27] Speaker 5: It goes belly up. You’re not gonna get anything. Probably, but you’re also more likely to make money if it does well. So you got the guarantee on one side versus non-guaranteed better return potential on the other side, and that’s owning the company or you know, owning shares of the company versus lending to the company, which is on the fixed income side. [00:09:46] Speaker 4: Yeah. I think if you don’t look at this too closely, og, it looks like it could be a very good opportunity because if I can get 8% loaning one of these risky companies money and they don’t go under, I’m guaranteed. As long as they don’t go under and they repay their bill, I’m guaranteed 8%. Yeah. If I invest in the company and they don’t do much, they do enough to stay alive, but they don’t really knock the ball outta the park, well then I might not make any money. [00:10:08] Speaker 4: However, if they knock the ball outta the park, I could make a ton of money. So clearly the risk reward profile has narrowed. The problem I think, is that, uh, if the company does go bankrupt and the risk is so high, I’m not, I’m not really being eight percent’s not a lot to be paid for the risk that I’m taking, you know, and the big scheme of things, I’m still taking a ton of risk by loaning these. [00:10:29] Speaker 4: Companies with a bad track record of debt problems and uh, negative cash flow, many cases, uh, I’m still looking at a lot of trouble for what, in the big scheme of things is not a high paycheck for that trouble. [00:10:42] Speaker 5: Yeah. Considering you get 10% in the s and p historically getting eight doesn’t sound like that good of a deal, you know, even though the eight is quote unquote guaranteed, you know, you kinda hit the nail on the head here. [00:10:52] Speaker 5: At the end of the day, I think that most people, if they look at their investments. Say, okay, I need to be 70% stock and 30% fixed income, 30% bonds. How do we search for what things to pick? We just generally click on best return. Or if you’re looking at the, uh, fixed income side of the bond side, you’re gonna click on the yield and go, oh, well this stuff’s paying 8%. [00:11:15] Speaker 5: All junk bonds all the time. Yes. Other craps paying 5%. I’ll, I’ll get the, I’ll get the 8% deal. I’m gonna put my money there. You know? What’s the major difference between eight and five? The difference is the likelihood of getting paid back. Now, if you make the decision based on your risk tolerance, that Hey, I want to take a little bit extra risk on this and that fits in my my risk profile, then you know what you’re getting yourself into. [00:11:36] Speaker 5: But most people don’t. They just search by highest yield and take it. I see this channel on Reddit all the time. It’s not a channel. What’s it called? UN Reddit Group Thread. Group sub a sub subreddit sub or subreddit. It’s about investing in dividends and like everybody’s trying to get one up somebody else’s dividend rate. [00:11:56] Speaker 5: Like I found a stock that’s paid 15%. I found a stock that’s paying 30%. It’s like, what do you think’s happening here? You know, like you magically found the one company that earns a bunch of money and pays a bunch of money out. Apple doesn’t pay high dividend, but yet they’re a really good company. Why is that? [00:12:10] Speaker 5: ’cause they take their profits and reinst it in the company. If you’re paying out all of your cash as a dividend. What does that tell you? Nothing’s really happening here. We’re not really investing into this organization very much to grow to the next thing. So again, if you’re just searching by yield or searching by dividend or whatever, I think you’re doing yourself a disservice. [00:12:28] Speaker 5: ’cause you’re gonna be lulled into the higher number, not knowing the risk profile of what that is. I. [00:12:33] Speaker 4: With, uh, dividends. There are some outliers. I know if you invest in pipelines, like they’re not growing that pipeline anymore, so that’s gonna throw off a monster dividend or a, uh, container ship. You’re gonna have monster dividends. [00:12:43] Speaker 4: But of course, those things get older and, and that opens up a whole different can of worms. The big thing here, OG for me, is if you do high yield bonds, you decide that this is a good place to go, I think then you’re gonna do exactly what Vicki here in this piece says, which is that people have added $3.7 billion into junk bond funds. [00:13:05] Speaker 4: And I think that if you’re gonna go into junk bonds and you’re gonna try to lock down this 8% number, you’ve gotta lock down an individual bond. Because the second that you go into a junk bond fund, now you’re at the whim of as interest rates change over time, like this profile we have today is not gonna stay the same. [00:13:22] Speaker 4: And because they’re not holding any of these bonds until maturity to grab that 8% and lock it down, well then bond prices are just gonna go crazy. Either way, you’re gonna get all the volatility damn near close to the volatility of the stock market and not have a lot to show for that volatility. [00:13:40] Speaker 5: And that’s why when you look at building an investment portfolio, the thing that you wanna look at is correlation. [00:13:45] Speaker 5: Like, how likely is this asset class to move with other asset classes that you already have? And the idea is to have things that move independently of one another. If you look at, for example, the Russell 3000 Index, which is the 3000 biggest companies and the s and p 500, you’d not be surprised to find out that they have a very high correlation. [00:14:06] Speaker 5: If you invest in one and invest in the other, you’re kind of getting the same thing. You, you’re not really diversified by that. But if, for example, you say, well, I have the Russell 3000 and maybe the, uh, international stock fund, those things will be somewhat correlated, but not exactly moving lockstep. [00:14:25] Speaker 5: What you’d find if you looked at the correlation between, uh, junk bonds and the US stock market, they’re highly correlated, which makes sense because as the economy does better. And, you know, the overall stock market does better, then the risk of default from crappy companies goes down because, you know, all ships rise in high tide. [00:14:46] Speaker 5: You know, so the, the fun Warren Buffet quote, you don’t get to see who’s naked until the tide rolls out. That’s what happens on the other side of the economy. So when the stock market goes down, when the economy is weaker, the companies on the fringe, to your point before Joe, that were like, like just hanging on, they go by the wayside and we start seeing lots and lots and lots of defaults. [00:15:05] Speaker 5: So as the economy is strong right now and the stock market’s doing well, we’re not seeing the risk profile of of junk bonds because it moves very similarly to the overall market. I think that is, [00:15:18] Speaker 4: for me, the biggest key. Don’t me wrong, I’ve invested in junk bonds and in junk bond funds before, but I think that you certainly gotta know what you’re getting into with this asset class because I think that a lot of people will read this, I can get 8% and they go to a junk bond fund and that 8% doesn’t stay around. [00:15:35] Speaker 4: They experience the volatility that you wouldn’t have if you have an individual bond, but if you buy the individual bond, you’re subjecting yourself to the risk of that company going bankrupt. Like there’s just, there’s some minefield here that I think that people need to understand, which is why I’m glad you were able to, to go there today. [00:15:50] Speaker 4: Certainly with interest rates, where they are today in the economy, where they are today. I mean that clearly spells good things here. But for your point, that’s also, I would think there’s a direct correlation OG to these yields being high. It’s the same reason why we’re seeing highs in the stock market right now. [00:16:06] Speaker 5: Yeah. I mean they, that and the interest rate market is the way the interest rate, interest rate market is, right? So that has an effect obviously, too. [00:16:13] Speaker 4: We will dive more into this in the 2 0 1. If you’re interested in how bonds work and why we often talk about minimizing the number of bonds you have in your portfolio. [00:16:22] Speaker 4: Kevin Bailey, who used to work for Vanguard and for TIA now writes our Marvelous newsletter, the 2 0 1. He’ll help you dive deeper into these. So you can get even more definitions, more background for people that wanna read more. Stacking Benjamins dot com slash 2 0 1 is how you sign up. Hey, it’s time for our TikTok Minute. [00:16:40] Speaker 4: This is the part of the show where we sign a light on a TikTok creator who either is brilliant sharing brilliance of the world, or air quotes, brilliance. Oh gee, you think we got brilliance, or you think we got some uh, air quotes? Brilliance. TikTok is the devil [00:16:54] Speaker 5: all day, every day. So it’s, it’s [00:16:57] Speaker 4: funny, Doug how he can change on this. [00:16:59] Speaker 4: Yeah. A couple weeks ago he was all about, yeah, this is gonna be good. It kind of depends on what he had for breakfast, [00:17:04] Speaker 5: I think. No, I don’t think, I [00:17:05] Speaker 4: don’t, kind of depends on, yeah. What, what was the thing you were having for breakfast on Monday? OG the uh, flapjacks cake. Yes, it totally Doug looked like he had a pin of haidas he was eating for breakfast. [00:17:18] Speaker 3: Yeah. Those are those Kodiak power cakes or something like that? Yes. It’s very healthy. [00:17:23] Speaker 4: Yes. That’s what Cheryl calls me, the power cake. [00:17:25] Speaker 3: It’s, it’s really a Reese’s peanut butter cake, Reese’s. There’s no long eat at the end. That’s why I said it. [00:17:32] Speaker 4: And it’s insurance, by the way, Doug. Yeah. Yes. Uh, is it the devil? [00:17:36] Speaker 4: Well, let’s see. This gentleman is telling his audience that English is a second language, and if we just went through this discussion about bonds and you were struggling to hang on to the discussion and not sure about all the terms we talked about, imagine the broader picture. Not only are you an investor, you’re just trying to get by day to day. [00:17:55] Speaker 7: And English is still hard for me. I keep learning new words. I have to look up words almost every day. And I recently, I learned this word that I, I didn’t know about and now it’s my favorite word here. It’s the best word you have. I love it. You must know this. Um, um, the meaning of the word, it means that you have now poured enough coffee. [00:18:15] Speaker 7: Into my [00:18:16] Speaker 8: cup [00:18:18] Speaker 7: and, and it goes, it goes like, [00:18:28] Speaker 4: I think that is the word. And I was thinking about, we have similar words in investing in here in the basement. Like as an example, Doug’s investment in Rivian. We just wah wa like Wawa is the word, right? Ww [00:18:41] Speaker 3: Yeah. [00:18:42] Speaker 4: My investment in Lumen going the same way. I can’t learn from Doug’s mistake. I You should just buy more [00:18:48] Speaker 5: to dollar cost average. [00:18:49] Speaker 5: Lower thank yes [00:18:51] Speaker 4: to dollar cost average outta all my money. [00:18:53] Speaker 5: Yes, exactly. [00:18:55] Speaker 4: See is your exiting. Make sure there’s nothing left so you don’t care anymore. [00:18:59] Speaker 3: A little dip on a on a day when it surprised you, you go Oh, oh. Very popular in Midwest Doug. [00:19:06] Speaker 4: Oh yeah. Yeah. And what’s another one? Like, you know, kapa or uh, booya. [00:19:13] Speaker 4: Things [00:19:13] Speaker 3: go well, suck. Is that one that’s that’s the thing. When you have a big success. Oh, is that what that is? Yeah. Like when my, like, when my rivian skyrockets guarantee you, I’m saying that word. [00:19:26] Speaker 4: I did say that by the way. I happened to write that to my friend Mike, who I was betting on the. Dallas Detroit game. [00:19:33] Speaker 4: That didn’t go my way when I was watching the game at Jerry’s house. Detroit scored, he reported He reported Detroit. Yeah, Detroit scored early on and I literally wrote, suck it. And Mike wrote me back and said, I think it’s too early for suck it. I think it’s the first quarter. I’m like, well, hey, we’re just hanging tough. [00:19:56] Speaker 4: And, uh, that didn’t work out in my favor. So, yeah, you gotta watch out when you, he did not suck it. You gotta watch out when you use that terminology. Gotta make sure that it’s gonna stick. All right. Coming up, we got a stacker that said I better call Saul. See hi and og. But before that, Doug, I think you have some Speaking of rivian, use some riveting trivia for us, don’t you? [00:20:18] Speaker 4: Riveting. [00:20:20] Speaker 3: Ha ha. Darn tootin. I do there. Joel. Hey, there’s Stackers. I’m Joe’s mom’s neighbor, Doug. On this day in 1943, Bing Crosby recorded white Christmas. For those of you who complain when Target starts playing Christmas music before Halloween, just be grateful. They don’t start in June like they did in the forties. [00:20:40] Speaker 3: That’s too early. Even for me and White Christmas is my Go-to karaoke song. I’d never publicly take credit, but I’m fairly certain my serenading women all year round with the song has contributed to it. Having sold over 50 million units worldwide, I. Not only did Bing sing the title song, but he also started the movie White Christmas, which was the second highest grossing film of 1954, taking in an impressive $12 million, or, you know, that’s like 12 billion in today’s economy. [00:21:11] Speaker 3: I can’t take credit for any of the box office sales, but I bet Joe saw it in theaters that year at least once. It must have been exciting to see after years of staring at the radio listening to Roosevelt’s fireside chats. Hi Joe. Today’s trivia question is, who wrote White Christmas? I’ll be back right after I find my tap shoes. [00:21:40] Speaker 3: Hey there, stackers. I’m crooner and cutest member of the Stacking Benjamins Boy band, Joe’s Mom’s Neighbor, Doug. After white Christmas wrapped filming producers learned that the king and queen of Denmark were visiting the set, wanting to impress them. The producers had the cast perform the final scene in front of a studio audience leading the royals to believe they had sat in on the actual filming. [00:22:04] Speaker 3: Today’s trivia question was, who wrote the song, white Christmas? I dream. Anyway, the answer ironically written by a Jewish immigrant, the song’s author, Irving Berlin, claimed it not only to be his best work, but like the best song ever, ever, ever, in the history of all of the universe and the expanding planets and blah, ever written. [00:22:27] Speaker 3: That’s how confident Irving was in his Christmas song if it weren’t for hair metal bands. I’d agree. And now back to Joe and og. [00:22:36] Speaker 4: He isn’t the only Jewish person Doug, who’s written some phenomenal, yeah. [00:22:40] Speaker 3: How about Mel Torme [00:22:41] Speaker 4: Christmas Carol Music? Yeah. How about Doug’s favorite Christmas album is the Barry Manalow God Christmas [00:22:47] Speaker 3: album. [00:22:47] Speaker 3: That dude, that dude will put you in a holiday spirit faster than any Goya. I know Neil Diamond. Diamond. [00:22:55] Speaker 4: I mean, just [00:22:56] Speaker 3: cranking out some, how is it that they can create the feels for our holiday and they don’t even celebrate it. They can just get you all warm and cozy and wanting to buy gifts for everybody. [00:23:05] Speaker 4: That’s what a small world it is. I mean, people, people helping people, we’re all [00:23:09] Speaker 3: right there at our core. We’re all humans and we just want love. [00:23:11] Speaker 4: That is, uh uh, so Doug is gonna do the world a favor and he’s going to croon dle dle dle. Make a record on Stacky Benjamins records next holiday season. You heard a here first. [00:23:23] Speaker 3: I’ll do it. I don’t even need a reason. I’ll do it. I hate and I love how humble Irving Berlin was about that too. Doug, he was nothing, if not humble. He was kind of a withdrawn personality, wasn’t he? He really didn’t put himself out there that much. It isn’t just the best thing I’ve done, [00:23:39] Speaker 4: just saying, by the way, this podcast isn’t just the best podcast we’ve done. [00:23:45] Speaker 4: Very well might be the best podcast ever. Hey, speaking of that, we got the best segment ever up next time to shine a light on one stack, Ru said, you know what? You better call Saul. See hi in og. That is. This is where we ask OG a question that a stacker either sent us or mailed us, or in this case they shared with the Stacky Benjamins basement. [00:24:07] Speaker 4: You know what, from time to time, and you know, in this episode, we got a little nerdy in the first part, but talking about high yield bonds and how those work a bonds in general work, but also about how, how yield works about. Analyzing credit. I want to continue the nerdiness here in the second half because I think it, it also shines a light on just how deep your knowledge can go and there’s still more to know, and certainly I don’t wanna scare people and go, oh, you gotta know all this stuff. [00:24:34] Speaker 4: But there’s just, there’s always something else around the corner. And Tom asked this question, which I thought was pretty hard hitting OG Tom said. When not to avoid I-R-M-A-A. So he starts off making it super easy with an acronym that I think a lot of people don’t even know what the hell that is. We’ll get there in a second. [00:24:54] Speaker 4: He says, my mother is approaching RMDs. There’s another one tells an RMD. She currently has several streams of post-retirement income and is not hitting the I-R-M-A-A cliffs. When the RMD start, she will. Does it ever make sense to take distributions early, even if you will have extra Medicare costs? My thinking is to take advantage of lower tax brackets now and reduce future RMDs a bit. [00:25:20] Speaker 4: She’s utilized Roth conversions in the past. There’s another one to use up the gap between income and the I-R-M-A-A cliff and he asked for help. He got a little bit of help in the basement. I think his question goes over a lot of our stackers heads, which is why I thought it’s about time to bring this kind of thing to the CFP because, uh, I think we can. [00:25:41] Speaker 4: At least try to bridge. What the hell is Tom talking about here? Oh, [00:25:44] Speaker 3: if she’s got, here’s one thing I know when I dec deciphered all of that. She’s got RMDs now. She was a little bit promiscuous at the sock hop back in the day. She’s gotta watch out for that Grandma. Grandma [00:25:56] Speaker 4: let those skirts fly high. There might be a cream for that, Tom. [00:26:01] Speaker 4: Uh, we’re gonna check and see. Oh, gee. What the hell is what? What’s he trying to do? What’s Tom trying to do here? [00:26:07] Speaker 5: Who’s, who’s Irma? Who’s Irma? And why does it matter? Yes. And why does it matter? With Doug’s mom, here’s the thing. Basically there’s a limit to the benevolence of the US government. No [00:26:20] Speaker 4: say it ain’t so who? [00:26:22] Speaker 4: Come on. Who [00:26:22] Speaker 5: knew? [00:26:23] Speaker 4: Shut [00:26:24] Speaker 5: your mouth. So, you know, when we get to this, we get to this retirement time and there’s a lot of moving parts and a lot of moving pieces that are going on when it comes to retirement. You’ve got. Your required distributions, which have changed over the last five years, from 70 and a half to 73, they’re changing to 75. [00:26:42] Speaker 5: There were some years in there where they weren’t required because everybody was sick. So F it, you don’t need any money. Apparently. We don’t need a tax on it. I don’t, I don’t know logic behind that, but whatever. There used to be lots of tax bills associated with that. If you screwed it up, they went, eh, we’re just gonna change that too. [00:26:57] Speaker 5: So there’s a lot of stuff going on with the IRA world of You saved money and now. The IRS is saying, you have deferred the taxes long enough. It is time for you to start paying income taxes. You don’t have to consume the money. You don’t have to. If your required distribution this year is 10 grand, you don’t have to go spend 10,000 in the economy, but we are gonna tax you as if you earn 10,000 bucks and uh, and you’re gonna pay us tax money. [00:27:22] Speaker 5: What you do with the money’s up to you. So you’ve got that going on. The other thing that happens as you approach retirement is this transition from generally private insurance, uh, of some kind workplace for, you know, uh, included or, uh, or the a CA plan that you might have or whatever to Medicare and Medicare happens. [00:27:40] Speaker 5: I. At age 65 and you have some very, very, very strict rules around how old you have to be to register, how old you have to be to get it. What happens if you don’t, uh, register? If you say, wait, don’t, don’t miss that deadline. Yeah, no, these are like one shot, one K type opportunities. You do not have a second chance if you do not sign up when you’re supposed to, you are screwed for life. [00:28:03] Speaker 5: Literally, they just jack your premiums way up and go tough. That’s how it’s forever, forever. So Medicare is priced based on your income and for a lot of Americans it’s very inexpensive or no cost whatsoever. And usually Medicare is paid for out of your social security benefits. So third area of complexity as you approach retirement is when the heck do I turn that stream of income on? [00:28:30] Speaker 5: I’ve got pensions, I’ve got social security, I’ve got my 401k, I’ve got my Roth IRAs and brokerage accounts. And when do you know I get a spouse? Maybe. So how do I optimize that? But when you get your Medicare expenses, that is usually paid for as part of your social security check. That’s just kind of how the premium’s paid. [00:28:48] Speaker 5: But if you make too much money, then they charge you more money for Medicare. I mean, that’s basically what it is. They just go, look, you have enough money. You don’t have to have a lot of this paid for on your behalf. And just like you have income tax brackets, you have these Medicare premium brackets, Irma. [00:29:08] Speaker 5: Uh, uh, and basically depending on how your income was for now, this is the other scurry part two years ago. So depending on what your income was two years ago, will depend on the excess cost that you’re gonna pay for your Medicare premiums, whether it’s just Medicare and or the, uh, prescription benefit part D. [00:29:30] Speaker 5: Two years from now. So you had something happen in 2022. 2024 is when you get the adjustment on your, on your social security check or on your Medicare premiums, which effectively affects your social security check. And so there’s this big disconnect between when the thing happened and when you actually have to pay the penalty for it or pay because of it. [00:29:47] Speaker 5: I guess maybe not a penalty per per se, but. Pay the piper, basically. So you have to be aware of what those numbers are too, which is just another whole different bracket of stuff. It’s not lined up with tax brackets or any of those sorts of things. So with Irma, as it relates to Medicare, there are three diff, I’m sorry, five different brackets. [00:30:05] Speaker 5: As your income passes through those, you know, you get a little extra surcharge on your Medicare, and it’s a pretty big number too. I mean, it can be as much as an extra 400, 420 bucks a person. For Medicare, you know, and sometimes Medicare is maybe a hundred dollars, $120 a person normally. And so it could go as high as $600 a month per person. [00:30:29] Speaker 5: That’s, that’s a pretty big change if you weren’t expecting it. Right? So you imagine your Medicare premiums were 200 bucks and now they’re 1200 bucks. You know, that’s a pretty big change. So what big difference Tom’s looking at here is he’s saying, well, wait a second. Mom’s got social security, mom’s got a pension maybe from work and I can see into the future, right? [00:30:49] Speaker 5: I can, I can do the math on her IRA and I can look at the chart and go, wait a second, if her IRA is worth this. When she’s 73, she’s gonna have to take out that, and now that’s gonna kick her above this other limit. Not only, not only a different tax bracket, which is a whole separate thing, but now it’s gonna also affect her Medicare premium. [00:31:04] Speaker 5: Holy crap. What do I, how do we balance all this out and how do we plan for it? And the answer is, yeah, you have to plan for it. You have to think about this stuff long in advance because it’s hard to solve when you’re 71 and go, oh crap, what do I do? Because you only have two years to solve this problem. [00:31:20] Speaker 5: When you’re 57, you can start thinking about it. You’ve got, you know, 15 years to solve it. And then because of the fact that it’s a two year delay, a lot of times the thing happens, right? You have a big bonus or a big RMD, or you do a once in a lifetime trip. You go, all right, I’m gonna take, I’m gonna take a big amount of money. [00:31:38] Speaker 5: I’m gonna do a big Roth conversion, right? I’m gonna convert a hundred grand Go team. And then two years later, you get a letter that says, oh, by the way. Your Medicare premium is now this, and you’re like, wait, you bad. Why? What? Wait, hold on. Why? Why, why? You know? So yeah, you do have to think about those things, and you have to think about those things years and years and years in advance to make sure that you’re doing as best as you can to. [00:32:01] Speaker 5: You know, make the right decisions. I guess [00:32:03] Speaker 4: I love this idea of modeling, not just for this, right, but just for the idea of, you know, people take a look at their retirement income streams. By the way, if you’re 25 and you’re listening to this, I don’t think you have to worry about any of this. Just, just say money. [00:32:17] Speaker 4: Fast forward, just, just say money. But I think if you’re 50 years old. 55 years old. I think you wanna look at, when you take a dollar out, if you’ve got big expenses, you know these one-time purchases, you wanna buy a second home, or you wanna move, or you wanna buy an RV or whatever. The thing is, if you’re gonna have these blips in your income stream, modeling that out ahead of time and modeling the way to is can pay these huge dividends. [00:32:41] Speaker 4: og. It isn’t just about, you know, people like how much money you wanna live on every year. It isn’t just about that. It’s also about if I’ve got these big bumps in the road where I know things are gonna change, I wanna model that out too. [00:32:55] Speaker 5: To his point, if you had a 10 year, 12 year track of being able to plan for it, you could basically be converting IRA money to Roth or be withdrawing money to build up that brokerage account outside of the whole IRA world altogether. [00:33:10] Speaker 5: You’ve got a big expense. In 2025, maybe you do half of the expense in 24, half of the expense in 25, half in a third in 24, a third in 25, a third in 26, carry some debt. You know, because the debt interest payment would be better than having, [00:33:25] Speaker 4: yeah. [00:33:26] Speaker 5: You know, a higher Medicare payment in 2028 when all this settles out. [00:33:32] Speaker 5: Isn’t that [00:33:32] Speaker 4: wild, by the way? It’s wild that the interest on the debt is less. [00:33:36] Speaker 5: Could be right? Could be right. Depending on how much it’s, I mean, [00:33:38] Speaker 4: yeah, but modeling it and thinking that might happen. [00:33:41] Speaker 5: Yeah, [00:33:42] Speaker 4: might [00:33:42] Speaker 5: change everything and using, oh yeah, using your example, Hey, I wanna, you know, I wanna buy an rv. [00:33:46] Speaker 5: It’s 200 grand. A lot of people just go, cool pit the account minus 200 off. We go, well, you pay the piper for that if you’re over 65, but you don’t pay it today. It’s not like it, like it hits you right away. And that’s the other major struggle with this is you forget. That that happened, you get settled into a cash flow and now all of a sudden your cash flow is adjusted by a thousand a month or 800 a month or something. [00:34:10] Speaker 5: If you’re a couple. And that’s a pretty big, I mean, think a $800 a month cash flow difference, 10 grand a year. I mean, I think all of us would have a pretty big, you know, our breath taken away, I should say. If all of a sudden you had 10,000 less dollars this year to spend, you know, that’s pretty meaningful. [00:34:27] Speaker 5: So. [00:34:28] Speaker 4: For people wondering this all the time. You love retirement [00:34:30] Speaker 5: planning, right? I know. [00:34:32] Speaker 4: I love it. I wish you were complicated. I mean, this is good stuff. Yeah. [00:34:34] Speaker 5: No, this is good stuff. Oh, this is, this is great question. Yeah. [00:34:36] Speaker 4: Yes. And it’s not the type of thing, if you’re brand new to this, you need to know today. [00:34:40] Speaker 4: But knowing that things like this are coming up is exactly why I wanted to do this segment today. And for people wondering right now what Irma actually stands for, they’re yelling at their device, well, what does it mean? It’s income related monthly adjustment amount. Irma, which is as OG explained, you know, your, it’s income related, you need to know exactly how the income’s coming in. [00:35:00] Speaker 4: Then there’s gonna be a monthly adjustment on your Medicare, depending on, uh, exactly how much you took out two years ago. And RMDs is your, your requirement distributions. There’s been some changes in requirement distributions a couple years ago. When do people have to take required minimum distributions now? [00:35:16] Speaker 5: This year, it’s the year after the, it’s April. The technicality is April 1st following the year in which you turned 73. Most people take it the year they turn 73, which is allowable also. But your first RMD has to be by April 1st, the year after you turn 73. And that’s changing over the next half a decade to be 75. [00:35:37] Speaker 5: So there’s different, you know, it’s staggered. Yeah, staggered as, as you know, as time goes on. [00:35:42] Speaker 4: To Tom’s point, while it may look like taking that as late as possible, like a deferred tax is a better tax a lot of the time. Yes. Yeah. But in this case, you could end up paying some penalties in other areas like Medicare if you do this, which is what Tom’s trying to avoid. [00:35:59] Speaker 4: So he does. Yeah. There’s [00:36:00] Speaker 5: that taxes. There’s extra Medicare tax. If you make too much money, you pay a higher Medicare tax normally, so you can double dip there. There’s extra capital gains taxes and. All those sorts of fun things depending on how your income is. So, you know, this is a whole section of financial planning is tax management. [00:36:16] Speaker 5: And unfortunately, I don’t think that a lot of CPAs and a lot of tax preparers spend a lot of time on it because they’re overwhelmed during the year of actually putting numbers from last year on a, on a piece of paper. So they can send to the IRS there, there’s not a lot of thought given to planning for next year, let alone planning for the next 10 or 15 or, you know, 20 years potentially. [00:36:39] Speaker 5: A lot of unknowns there, obviously. [00:36:41] Speaker 4: Certainly it’s not something, I mean, it is something that you model, but this is why we call it planning and not a plan because as things change, you continue to roll with it. Super exciting. Uh, Tom, thanks for asking that question in the basement. I was like, you know what, Tom, this is one that definitely should have come to the show. [00:36:57] Speaker 4: If you’ve got a question, whether it’s really, really nerdy like Toms or it’s just a question that you think, you know, this might be a dumb question. I’ll tell you that the number of times probably is. Oh, the number of times somebody has said, I think it’s this dumb question. I’m like, Nope. This is what everybody asks me all the time is every time I swear it doesn’t swear. [00:37:17] Speaker 4: Make it not a dumb [00:37:17] Speaker 5: question. [00:37:20] Speaker 4: Head to stack. You’re not helping our case here. Sorry. Okay. Sarah stack Benjamins dot com slash voicemail and you can ask your question ’cause. Different than og. I think that questions probably is one somebody else is thinking about too, and we’d love to help you answer it. [00:37:35] Speaker 4: And by the way, if your question is complex like to is or you’re somebody that’s like, you know what? It’s not just about requirement distributions. I don’t even know what my retirement plan is. Well, G and his team are taking clients and to head to his calendar to schedule a first meeting, head to stacky Benjamins dot com slash og and that will lead you his calendar so you can schedule that first meeting and find out how they can interface with you to make better decisions around retirement or whatever the goals are that you’re trying to dovetail all. [00:38:04] Speaker 4: Onto a segment we call the back porch. This is the part of the show that we love to end with because man, we always have a potpourri of topics. Doug, what’s on the docket today? [00:38:15] Speaker 3: Hey, I wanna talk about, we’re giving away, what did I hear? We’re giving away free passes to like city parks and, and, and county parks. [00:38:23] Speaker 4: Yeah, with Robert Niles on last week. We announced this last week in the basement Facebook group and on our social media channels. If you’re not on those, you’re hearing it. You heard it Monday, you’re hearing it today. We are going to take this excitement that Robert Niles talked about, these regional theme parks, these places, and we will buy you a summer pass. [00:38:44] Speaker 4: We’re gonna buy that for one Lucky stacker. And you know what? There’s some of our stackers who just aren’t into that. They’re like, Nope, don’t really care about that. In fact, we have one stacker James who said, he’s like, you know what? I’m not in the theme park thing, but I love, I love the fact that this is the introduction to summer, and it makes me excited to go out to, you know, my local state park. [00:39:03] Speaker 5: And just for clarification, this is not like the hall pass that Doug tries to keep getting. Right. [00:39:09] Speaker 3: This is what this is. This is not, [00:39:13] Speaker 5: this is a whole different thing. Type of pass. Got, it’s a different [00:39:16] Speaker 3: type of pass. If you love Central Park, we’ll buy you an annual pass to be able to walk into Central Park. [00:39:23] Speaker 4: Yes. To walk into Central Park, like you buy one every year. Doug from that guy in the corner. Yeah. He gives me a [00:39:29] Speaker 3: great deal. It works out to be like five bucks a day and I can go to Central Park as much as I want. It’s incredible how that works. [00:39:36] Speaker 8: Yeah. [00:39:37] Speaker 4: O gee, I’m not gonna tell him. Uh, maybe, I don’t know. But when it comes to parks, here’s the way this, this works. [00:39:42] Speaker 4: This is where on our newsletter, the 2 0 1, which we’re so proud of, and we think people. Should have the ability to become educated about their money, and we’ve always had this community around us that needs help. And if you know somebody that needs help and you already get the 2 0 1, we will give you three entries into this giveaway, which goes till next Monday. [00:40:02] Speaker 4: That is Monday, June 3rd at midnight central time. So through next Monday. Introduce somebody to the 2 0 1. Inside your 2 0 1 newsletter. You have a code. Everybody has their own code inside the 2 0 1 newsletter. So if you get this, you know what I’m talking about. Use your specific code. We will see that we will enter you three times and you know what? [00:40:24] Speaker 4: The person you introduce, or if you don’t get the 2 0 1 yet, you wanna give it a try. It’s always free to unsubscribe. It’s always free to subscribe. We’re gonna give that person or yourself, if you don’t get the 2 0 1 1. So let’s say you don’t get the 2 0 1, you get it yourself, that’s one. You get this next issue. [00:40:40] Speaker 4: You love it. You send it to three friends. You just gave yourself 10 entries into this. But one lucky stacker’s going to take home a summer of fun, uh, on the Stacky Benjamin Show, and we’re super happy to do that. Um, stacky Benjamins dot com slash park Doug is where people go. Stacky Benjamins dot com slash park. [00:40:57] Speaker 4: So sweet. Get in. Yes. What else we got? [00:41:01] Speaker 3: Uh, OG saw a amazing movie on an airplane. I wanna hear about that. All I know is that he was pretty excited about it. [00:41:09] Speaker 5: I’m pretty excited about it. Indeed. This is right up my alley. So this movie, uh, has Liam Hens Worth and Dreamy Russell. Oh and Yes. Can’t get enough of that. [00:41:23] Speaker 5: And Russell Crow. Russell Crow. I can get enough of that. You’ll hear. You’ll hear him. Young. Russell Crow or today? [00:41:30] Speaker 4: Russell Crowe. [00:41:31] Speaker 5: Today. Russell Crowe. Definitely not Gladiator. Russell Crowe Today. Russell Crow. I [00:41:35] Speaker 3: used to put the fork down as I told, [00:41:37] Speaker 5: as I told Doug earlier. This is Fat Russell Crow. But he is, uh, PHAT though. [00:41:43] Speaker 5: Yeah, he’s, this is pretty great. This is a movie I saw. It’s, I think it’s available on Amazon already called Land of Bad. [00:41:54] Speaker 7: I’m going after a CIA asset that’s been captured. Is this your first Michigan Theater? jtac second. Do me a favor, keep up. Last thing we need in this office is have to save your ass. [00:42:06] Speaker: The hell are these guys. [00:42:10] Speaker 8: Yo hand over in five. [00:42:12] Speaker: I’m ready. I have your eyes in the sky in the. [00:42:19] Speaker 7: We got a situation 12 o’clock. Ain’t coming. [00:42:25] Speaker: Weapons away [00:42:33] Speaker: for you. There we are. Here Playboy. Gotta get your ass on the move, son. Come on soldier. [00:42:41] Speaker 5: So this movie is uh, clearly a, uh. Click, click boom type of movie. Romantic [00:42:47] Speaker 4: comedy, [00:42:47] Speaker 5: you’re about to say romantic comedy. It’s a romcom. Uh, Russell Crowe is a drone operator. He’s clearly the most senior guy there, despite the fact that he’s doing, you know, kind of grunt work. [00:42:59] Speaker 5: I. No, I mean like in the in, not in the movie, but also what I love [00:43:03] Speaker 3: about it is they put the outta shape old action star in a role where he doesn’t have to move. [00:43:09] Speaker 5: Yeah. I mean, he [00:43:10] Speaker 3: sitting with a [00:43:10] Speaker 4: joystick. Is he eating pizza with one hand? [00:43:13] Speaker 5: He plays, he plays a really good role because there’s a lot of power dynamics. [00:43:18] Speaker 5: He should have been. In charge of all this, but it’s clear that there’s some drama in his background of why he’s still a lowly captain and not, you know, a colonel, you know, type deal. Why is, why is he not in charge of this? And so there’s some power dynamics there and, uh, obviously, you know, shoot him up. [00:43:33] Speaker 5: Movie things go, uh, haywire kind of early on. And, um, this drone operator and this one surviving person from this thing have to kind of navigate. Getting out of there unharmed. And right when you think that he’s about to get outta there unharmed, he is not going to be out of there. So there’s a little plot twist midway through, which is kind, someone takes [00:43:57] Speaker 3: his slice of pie. [00:43:58] Speaker 5: Yes, it’s very cool. This is a great popcorn movie. This is a great loud movie, theater movie. I watched it for the first time in the airplane. Kind of sucks ’cause you got, you know, AirPods or something so you don’t get the. The full spatial 3D audio that you could at the theater, but this is a fun movie. [00:44:16] Speaker 5: This is just like, like Roadhouse, like really fun movie. [00:44:20] Speaker 3: Ha. Have you seen the New Roadhouse? [00:44:22] Speaker 5: Yes. Do we not talk about it? [00:44:23] Speaker 3: I don’t think we, we have. Think we did. [00:44:24] Speaker 5: Oh, we didn’t? I thought we did. Oh my gosh. That was also awesome. Very, very, very good. Very witty, funny. [00:44:33] Speaker 3: So let me ask you this. So yes, you should watch both. [00:44:35] Speaker 3: I know somebody who lives very close to me, who’s never seen the first Roadhouse Uhhuh. Do they need to watch the first Roadhouse before they watch the new Jake Gyllenhaal [00:44:43] Speaker 5: version? No. No. Okay. Uhuh. It’s every bit as corny. It’s every bit as, uh, Joe’s favorite word, campy. It’s a campy movie. So transitioning now to Roadhouse, Jake Gyllenhaal and Colin McGregor are the main stars in this movie. [00:44:57] Speaker 5: And, uh, bankable, if you ever needed some motivation to get your ass in the gym, watch these two guys with their shirts off and you’re like, yep, I am. Uh, I need to get to the gym right now to work out. [00:45:10] Speaker 3: And does one of them say Be nice, be nice? [00:45:14] Speaker 5: I’m not sure. I dunno why [00:45:16] Speaker 3: that was the, one of the big things when, when, uh. [00:45:19] Speaker 3: Oh my God. Why did he just draw a blank on Patrick Swayze? Mm-Hmm. When he was training bouncers near the beginning of the movie, he just kept telling him, I want you to be nice. [00:45:27] Speaker 8: Mm [00:45:27] Speaker 3: God. It’s like we tell OG at [00:45:29] Speaker 4: the beginning of every show. He never listens. Be nice. [00:45:32] Speaker 5: Yeah. I don’t remember that, but Jake, Jill Hall’s character in that movie is very funny. [00:45:36] Speaker 5: He has a lot of one-liners that are, that are super comical and you know, he just kicks everybody’s butt. So it’s kind of fun. [00:45:42] Speaker 4: Let’s talk about something else around. Be Nice. I saw a video yesterday, OG of your daughter playing softball, and she looks like she has some anger issues when she handles the bat that that woman can, she can wow up a softball. [00:45:54] Speaker 5: Yeah. Right into the face of the opponent [00:45:56] Speaker 4: that was, hit her right in the chest. It didn’t [00:45:58] Speaker 5: hit her in the face, it hit her right in the chest. [00:46:00] Speaker 4: In the chest. I felt bad for everybody there. I was like, oops, [00:46:03] Speaker 5: eh. [00:46:03] Speaker 3: Well, what I loved about that at bat, I saw the same video and. First pitch comes in, it’s high, but this girl’s in attack mode and she wants to hit the ball. [00:46:12] Speaker 3: Yeah. They only get [00:46:13] Speaker 5: six pitches, so there is no like strikes and balls. It’s like you get six, you need to swing on every pitch wherever it’s, and [00:46:18] Speaker 3: can you get four or five strikes and then finally you can get a hit on your sixth pitch. Yeah. [00:46:22] Speaker 5: You get six pitches until you get on base. [00:46:24] Speaker 3: Okay, so it doesn’t really matter that, okay, got it. [00:46:27] Speaker 3: Anyway, what I liked was A, she was in attack mode, and B, as soon as she realized she missed it, she immediately went back into her stance and she’s like, okay, bring it. Bring [00:46:36] Speaker 4: it. Yeah, yeah. [00:46:37] Speaker 3: No. You could see her [00:46:37] Speaker 4: double down. [00:46:38] Speaker 3: Doug. Yeah. She was doubling down. Yeah, she was anxious. And then I saw another video of her fielding at first base. [00:46:44] Speaker 3: Was it? Was that a birthday? I thought it was [00:46:46] Speaker 4: wild though. Doug. Hold on. I thought it was wild though after she missed that first pitch that she. Like dug into her wallet and then placed three to one odds as she’d hit the next one like that. That seemed a little too close to what dad does, I thought was weird. [00:46:58] Speaker 4: I also found it weird that the umpire took the money that was strange. [00:47:02] Speaker 5: She doesn’t take after her dad, but as it relates to, uh, athletic ability, that’s for sure. [00:47:07] Speaker 3: Yeah. And then in the video where I think she was playing first. She was playing a bass. Yeah. Yeah. First base. Yeah, [00:47:13] Speaker 8: yeah, [00:47:14] Speaker 3: yeah. And she went to tag out the runner, just knowing her personality and just seeing her, her body positioning and her attitude. [00:47:23] Speaker 3: I was entirely ready for her to just drop a shoulder, just. [00:47:28] Speaker 5: Just body check the runner, just [00:47:29] Speaker 3: level. That little girl that was running to first base, I wouldn’t have surprised. In fact, I was disappointed when it didn’t happen. OGs showing her Ty Cob videos all the time. [00:47:38] Speaker 8: Yeah. [00:47:38] Speaker 4: Oh, OGs yelling from the stands. I said, spikes up. [00:47:41] Speaker 4: Spikes up. Spikes up. [00:47:45] Speaker 5: I don’t know what that’s from, but that sounds funny. [00:47:47] Speaker 3: Was Ty Cobb was notorious for sliding into a base with his sharp spikes metal. And he would sharpen his spikes. He would take a metal file and sharpen his spikes. Nice. And then he would go nice into the second baseman with the spikes up just to amate his leg, make sure the second [00:48:00] Speaker 4: baseman would not get in the way. [00:48:01] Speaker 3: ’cause they knew Yeah. That he was coming. Not the nicest guy in the world. Yes. Not that your daughter’s, anything like that? [00:48:09] Speaker 5: Not so far. She has, she, although we, we did have to tell her, uh, she didn’t need to cover the, the overthrow on third base from first base. She has, she has a lot of. She is, she’s very, very aggressive in terms of like thinking like, I need to cover everything just in case. [00:48:23] Speaker 5: Yes. And so she, like, after the ball was hit into the center field, she ran from first base to back up the third base. You know, she’s [00:48:29] Speaker 3: not far off though, because once you know it’s an extra base hit, first baseman has no responsibility other than to back somebody up. Oh yeah. So if there’s a runner on second and it’s a, and it’s an extra base hit, she needs to get her little butt back behind home plate to back up. [00:48:44] Speaker 3: Catch her ’cause there may be a play at home. So I like her thinking. [00:48:47] Speaker 5: Yeah, [00:48:48] Speaker 4: I thought it was weird, OG when she threw the ball from first base to third base and then went to back up her own throw. [00:48:53] Speaker 5: Yeah, yeah. No, didn’t do that, but, but she didn’t run on an angle from first to third. She ran the bases to get there. [00:49:01] Speaker 5: Oh God. So we got, we got some things to work on. She’s a [00:49:04] Speaker 4: rule follower. Yeah, she’s following the rudder around the bases. [00:49:07] Speaker 5: That’s exactly what was happening. Someone’s gonna throw it near me and I might get lucky and grab it and tag you out on the Rudd. That would be epic. So that’s, that’s fabulous. Lots of fun stuff going on around here. [00:49:19] Speaker 5: Movies and softball. You guys need to see both of these. And I saw Blue Angels in the IMAX theater. It’s not an IMAX anymore. Oh, you [00:49:25] Speaker 3: did? Wow. So [00:49:26] Speaker 5: it’s not, it was just a week and, uh, pretty good, you know, doable without imax. So if you didn’t catch an imax, you don’t have to just grab it on Netflix or Amazon. [00:49:33] Speaker 5: I think it’s on Amazon. Just go watch it. Watch on. [00:49:36] Speaker 4: You know what the most fun is though, og? What’s that? Asking Doug what our takeaways are. [00:49:42] Speaker 7: Oh, yes. [00:49:43] Speaker 3: Wow. You need a hobby if that’s the most fun thing you got going on today. But anyway, I’ll tell you anyways. First, take some advice from our headline. Well, 8% might look like a great deal until you know how you can actually lose out. [00:49:57] Speaker 3: It isn’t worth pursuing. And in this deal, there are plenty of ways to lose. Second, I think that’s just enough takeaway for one day, but what’s the biggest to do? Never tell Joe’s mom. She looks like a female. Danny Kay. Apparently she sees. She sees herself as more of a Rosemary Clooney. Yeah. Keep wishing on that star ma. [00:50:22] Speaker 3: Fine by me. As long as Joe doesn’t go thinking he’s George Clooney. Oh hey, this show is the property of SB podcasts LLC, copyright 2024 and is created by Joe Sea. Hi. Our producer is Karen, Repine. Karen and Joe. Get help from a few of our neighborhood friends. You’ll find out about our awesome team at Stacking Benjamins dot com, along with the show notes and how you can find us on YouTube and all the usual social media spots. [00:50:51] Speaker 3: Come say hello. Oh yeah. And before I go, not only should you not take advice from these nerds, don’t take advice from people you don’t know. This show is for entertainment purposes only. Before making any financial decisions, speak with a real financial advisor. I’m Joe’s Mom’s Neighbor, Duggan. We’ll see you next time back here at the Stacking Benjamin Show.
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