is the Economy going to collapse?


Crazy couple of days. Where is the Economy going?

is the Economy going to collapse?

Talking with Patrick McAndrew today to learn more about what's happing from a Finance point of view. What should we do now? What should we have prepared? How can we get through this without a lot of scratches?


 One. Hey, welcome back to Silicon Valley Living Today we have Patrick McAndrew on the channel with us, and we are talking about what's going on with the economy and what's going on with this recession, this, everything, and really try to figure out what we can do to get out of this or be prepared for this and get out of this without a whole lot of scratches.

Patrick, welcome back to the. Thanks, Peter. Happy to be on. Excited to be here. Thanks for putting this together. How have you been I've been getting a little healthier. We're out here about that. Still have some flop I gotta get rid of, but I'm, doing a lot better. Thank you. Yeah, you're looking good, man.

Thank you. Getting back into fighting Shake as they say before let's see. Last year when, my daughter, got into the color guard. It's a brand new thing. She didn't know anything about it, fell in love with it, and had a great time. The first time she did a performance was during Fleet Week up in San Francisco.

Oh, cool. And I love Val volunteering, doing whatever I. And so I drove up there. They took a bus, I drove up there and I didn't know what to do. I didn't know what to say. I'm like, Hey, I'm Vito. I'm [Daughters]  dad. How do I help? What can I do? And she's, and people are like, I don't what?

I don't, what are you doing? But anyway, they had this Battle of the Bay, the Battle of the Bands, it was called, and it was put on by the Marines. There were hundreds of Marines out there and I'm like, is that a military ban or, was it No, it was put on by the actual Marines. Like there, there was a brass band that travels around.

Yeah. There are five actual Marine Corps bands. Okay. That needs to get cut down. No, because that's what we do. We're like drill masters. We're I was like completely in my element. I have my camouflage rain jacket on. I'm like, and I'm going up and talking to these guys.

I'm like, dude, stay in as long as you can because you will miss it. I know it sucks right now, but when you're out you're going to miss it. And they're like, yeah dude, I don't know.

And right at the. I was talking to one guy, and I said: "I'd go back in a heartbeat". And he goes, how old are you? 54.  How long were you in? And I said, 12 and a half years. He goes, okay. No, you're too old. WHA WHA...

But that was a cool story, a success story I guess if you will. The Army where a son and their father got, went on a tour together. They were a civilian affairs unit. I'm pretty sure I got the details right. I don't know, I don't remember his exact age. He was in, I believe it was prior service, but he had to come back in and go to basic training.

and he came back. I wanna say he was 50, around 50, maybe 50 plus, something like that. Anyways it's possible, but Marines are a little more selective. You probably couldn't have come back on there. I tell you, they're a prima-donnas man. , I don't know. I know you don't listen, but they're the commandant came out and said, we're removing all reenlistment bonuses.

I saw a lot of that stuff actually, and yeah, the Marines have been doing a lot of changes, a lot of things. It's like you take it or leave it, we don't need you. We're going to decide if we'll keep you or not. A little bunch of prima donna assholes,  literally with tracks of type I tell you. So Patrick, congratulations.

Did Helena mcd? She hasn't been announced to everybody in the world, but I guess she has now. It's if it's on YouTube, it's everywhere, baby. Congratulations. Thank you. I bet you. How much sleep have you gotten? Ah, she came early and I thought they'd have a lot more time to be ready for her.

That's what daughters do. Clearly, I have two of them and that's why I'm gray. I'm the same age as you.  plus 15 years, I think. That's great. So tell me what's going on with everything over the weekend. I sent you a. Videos on Janet. Yell and tell me what your thought, are your thoughts there, some folks watching or listening probably follow it a lot closer than we do.

She was getting questioned. I'm not even sure what hearing that was. What, committee that was. I'm banking on something or other. However, the questions were great. Spot on. I thought like everybody he was a hell cat. He was asking questions that need to be asked.

It all centered around this, around the silicone Valley Bank. That's what started a lot of this. A lot of. Questioning of course. And there are two different arguments that I've been listening to when it comes to that whole situation. On one side this prevented contagion in the banking system, like a domino effect.

If it would've fallen over things would've got a lot worse. And, I guess we'll never know or we'll see. I guess we're still, we'll see if this actually stopped if so far it seems like it has. And it's early, so we'll see what the future holds. That's one side of the argument.

There's more to unpack there for sure. Yeah. I just, what I don't like is the fact that they just came down and said Abra-Cadabra. Yeah. It's not a problem anymore. Yeah. And we're all safe and everything's ha hunky dory and Yeah. The fact that Yellen was just oblivious to how to answer it, she was answering it by not answering it, because she didn't know how to answer it.

And it was obvious. It was just so obvious and it almost felt like the kid in the candy. Yeah. Caught with candy in his pocket. That's the other side of the argument, right? Okay. So basically the government became a guarantee, of all deposits, all not forget about the F D I C insurance. That was nothing, right?

Yep. Because that's what it's supposed to be. And they came in and guaranteed everything and we're not talking about. There's another thing I, had heard on another show I've listened to, and I think I made a good point. I wonder if, the bank was some regional bank in the Midwest, right?

If it wasn't Silicon Valley Bank would this be even a conversation? I'd probably not. There are a lot of ways I look at it and What? I don't know who the guy that was questioning, her was, I don't know. I don't know anything about that. He's a senator. I just don't remember his name right now.

Yeah. His questions were great and I think what, troubled me about it is the military, there's this thing called the second and third-order effects, right? It feels to me the way Yellen was responding that those aren't flushed out well, considering these second and third-order effects.

In other words, the consequences of doing this would be X. Maybe they do, and they figured these consequences are better than the alternative. And boy, I would just love to be a fly on the wall of that conversation to figure out how they came to that conclusion. I don't know. It's I it's, a scary thing when you think.

how they're doing it. And I think they're making it up. And I don't think they're evil. I think that they realize that there was a huge gaping hole. Human nature and greed took over and they're just trying to put the bandaid on it and stop the leaking from the dyke, because that's exactly what happened in 2008 and yeah, 1990 and 19, the and, all the way down the thing.

And it's just like we're trying to expand, we're trying to do all this stuff and spinning all these plates. Am I happy about it? No. Am I angry about it? People are going to do what people do. Yeah. And whether it's ethical or not, that's not the question. Whether it's legal or not, it's the way the system is set up and people are going to push the envelopes.

I just watched Madoff, right? Do you know that Madoff had been around? He's the one that started Nasdaq or one of the guys that started Nasdaq. Bernie Mad.  and he had two businesses going. He had the standard security business that made him famous, but he had this underlying business where he would have people and that's where he got in trouble.

Wow. He had a whole different floor where he was helping people get business and da, Or increase the value of their, holding. And obviously, it was a Ponzi scheme because that's what it all unraveled too. But the way he did it, people wanted to believe in him. They wanted to understand him, and he thought he was doing the right thing up until a certain point and then he realized he wasn't doing the right thing.

And he was. He was pot. Pot committed. Yeah. It's interesting how the human psyche can get us caught up. For sure. Yeah. And whether he's guilty or not, or he meant to do it, fallacious, salacious in the beginning, who knows? The fact is he didn't cop up to it until it was too late, and then it is what it is.

He lost billions and trillions of dollars and royalty even went to the point where he was having banks from Europe invest in royalty. Not like the king England, king, queen of England, but there's royalty all over Europe and they were taking money outta his pocket and putting it into there just to keep that thing that pyramid going.

It was Crazy Crazy times. But you brought up an interesting point. It made me think about the situation that I think we are in. You said, what'd you say right now? Bernie Madoff. And he kept trying to do the, he's tried to do the right thing. So we think this is one way to explain what may have happened there.

And it got so big he got caught up and didn't know how to get out of it until it was too late. Until somebody else had to do something and came the crash. It wasn't him who did it. It just became crashing down. Reminds me of a little bit of social security. Oh yeah. And where's our social security will be in the way the economy's been going and how we've been printing money or quantitative easing might otherwise call it.

It seems to me it's a lot of kicking the cannon down the road. We don't want to pull the bandaid off, for example, in this SVB s Silicone Valley Bank situ. , and I may not have the details exactly right. This is not my field of exact expertise nobody should take it that way. It's just an opinion.

However, there is an argument there that people are making that they should have been allowed to fail, right? This would've signaled the correct signal to that industry. It's how capitalism should work and this is pulling the bandaid off, right? This. , it may have been destructive. It would've caused undue harm to some depositors that didn't deserve it.

Some companies in Silicon Valley and Tech had their payrolls deposited there. For employees. So there's, that. It's hard to, square that. And that argument, there's a lot of truth there, that pulling the bandaid off and letting what happened, would've created the right signals in the right environment so that new growth could, come after that.

More healthy growth. Instead, the signal is, oh, okay. The government will guarantee all our deposits. But at what cost? Where is that going to end how much does inflation and how much is that will hurt the common person? Exactly. So it kicks everything farther down the road.

It kicks this well-published this recession that's been coming. It's probably been the most talked about most well-publicized recession we've ever had.  they say it's coming, but I think we've been. Yeah, there were a lot of ways last year, right? Yep. Even probably before that, but that's really when it peaked, depending on who you are.

I think that's absolutely true for a lot of folks. Anywhere was I going with that? Oh, social security. It reminds me of social security and that nobody wants to do anything about it. I say nobody wants to do anything. Any elected official doesn't wanna be the official to actually be the one that.

Creating the legislation will process that funds social security correctly because it requires either a drastic or very high increase in taxes and or a drop in funding to some part of the government to make that work. Mean printing more money is something right.  something would've to happen? I don't, I'm not convinced Prince more money would even be a solution.

Otherwise, that's what they would do and social security would be fine. I feel like it's going towards, 2031 right now, I think is when it's supposed to be exhausted around that time so, right now, the way Social Security is funded, so let's say every $4 in benefit, $3 of benefits paid through taxes right now though, through revenue, I should say, coming into the government.

And then $1 or 25% is paid through the trust fund. That's in social security. That's the economics of it right now. That is 25%. Scheduled to be exhausted right around 2030. 31 is where it's at right now. And so what's going to happen? Current legislation says when that happens. Unless Congress does something, man doesn't look like they'll do anything until they get absolutely forced to or becomes crashing down on them, right?

I love Bernie Math. What happens is the reduction and benefit of 25. , that's what happens whenever that date comes. And It's hard for me to see how either one of the parties and the Congress will get together and solve this. They keep kicking it down the road until it's too late. At some point, it's that person who's been elected in office and now they're in the office and oh shoot, it's running out on our clock,

And then they'll do something. And in my opinion, I, don't know. Cause we're not there yet. And this is not my area of expertise. However, I would say that we are in the lowest tax.  or tax what's the word I wanna use? Taxes are about as low as they've ever been. They've been mostly higher for most of as long as taxes have been around.

They've been mostly higher. In the fifties, sixties, and seven seventies, they started bringing it down. But in the fifties and sixties, I think Kennedy dropped it down. But people were paying 60 and 65%, right? Correct. Correct. And, it seems every so often, there are just some more giveaways and more giveaways.

When I say giveaways, meaning tax breaks, tax whatever. I'm just I'm not saying that's right or wrong. What I'm saying is I don't see it, I don't see, it's hard for me to see an environment in the future where taxes aren't higher. I just hard to see that. I, don't see how will play out.

And what a perfect way to force that onto the culture and the populace.  then a 25% reduction, a pending 25% reduction in social security benefits. But that's just social security. When they start taxing us, that means everything's going to be much more expensive. Inflation's going to go haywire. And that's why I talked to you over the weekend about buying gold or buying metals and buying other things because the value of the dollar right now, the value of the dollar globally is, Tank subjecting is being subjected to be to tanking because people are going to start going to, I don't know, China or wherever for the dollar.

We're not going to be the global power dollar anymore because of the shit that we're doing, the printing of the trillions of dollars in helping fight this proxy war and, wherever all that. , it hurts us. Not only the fact that we're going into a, we're potentially going into a war, but we're also that, that every time we print a trillion dollars, that hurts us at the gas pump.

At the store. Yeah. At services, at everything else. And there's this margin compression. Everybody's oh, rates are so high. Mortgage rates are so high. Yeah. But we have to pay for all this other stuff that we're.  our leaders are, taking us through so that you know what needs to happen if it all has to come tumbling down and then we have to reset.

No, I'd agree with a lot of concern, especially when it comes to things that have to come tumbling down. It has to reset, and I feel like the way elected officials have been running it, nobody wants to be the one kicking the can down the, just like you mentioned to do. And so that, that's the challenge.

However I would say we talked about, I think, I don't know if we were recording when we talked about how history doesn't repeat but rhymes that old saying and what goes up must come down. And we've seen a lot of this before. It doesn't look exactly the same. And there are some nuances here, like the printing of money and, stuff like that.

And I can't help but think that those who are prepared will come out. All of the merrier, which is the main reason why we are having you on this channel today. There you go. What are some of the things you're telling people to do? So what are the secret things that we can tell people? The secret things.

And so none of this would be construed as investment advice.  for sure. Disclosure, legal disclaimer, disclosure, a disclaimer. None of this is specific advice. If you want that, you gotta have a private conversation with me anyway. However, there are some basic things that. Makes sense when it comes to what's going on in the marketplace now and what's likely to happen in the coming future.

I, what up? Must come down. We talked about that. Everything's kind of a cycle. It's interesting to me how I'll meet pretty savvy people when it comes to investing and money. Making money. Actually. People are doing very well for themselves. And if you talk, it's really not us. No, you guys are kicking butt.

You guys have done very well. I wouldn't say you, I said your wife actually not me. I blame all of you, I blame money right here.

The financial access of your life for sure. Up. No kidding. I did not. No. Anyway. Broke ish to broke. Yes,. We both married up for sure. But what I was going say is people make, get it with real estate. Oh yeah, I'd much rather buy a house that's going down in value or is lost value on its way down so I can flip it later or something like that.

People don't wanna buy usually at whatever the top of the market is called. People if you have that conversation with them, people understand that with real estate when it comes to investing in markets and equities stocks, mutual funds whatever. People don't seem to apply that same logic.

If it's going up, it must be time to get in. If it's going down, must be time to get up. That's the same thing in real estate, man. I'm telling you, everybody, oh, I need to buy, I need to buy now. I need to buy it now. Yeah. I can put $500,000 over that list price because I need this house. Yeah, Kind of crap happened all the time.

I'm like, guys, most people are hoping they can time things right. And that never works out. Yeah. For sure. But when we have that conversation with someone, people generally seem to understand like, yeah, it's better to buy a house when it's, when the value has gone lower. As opposed to if the value has gone higher in the hopes that if I buy it low it'll, raise the value.

Generally, we have a conversation with somebody that kind of understands that concept. Now, in practice, do people actually do it? I'm sure you could probably comment on that. Same thing when it comes to the marketplace. People will generally though, run towards the markets when they think it's when it's going up and they hear, oh, this thing is doing great.

And so they want to pile in, and then the bad news comes and, oh, recess. , watch out. Everything's going down. Buy gold, buy guns, buy cigarettes. Nothing before, anywhere, right? Yeah. Buy guns in California, right? Yeah. There's California and then there's California. And I'm being globally facetious, however, that's how a lot of the news sells.

A lot of that and, bad news does sell. And so people get very nervous and, think, oh, I gotta get out of the marketplace. And, maybe you do, depending on what's going on. I'm speaking very generally, however for, a lot of folks, I'd say especially for younger ones. Okay. You have now are entering a time where it's maybe we may be at the beginning of one of the best times for several years to be getting into the market and start saving and start investing.

That could be very true, especially for younger investors who, have known nothing but the last 10 years when things went up.  since 2008, I'd say things mostly just went up. Even when we had the covid situation, things went down briefly and then the government intervened and everything went back up.

It wasn't, it didn't take very long. So we haven't had a true recession if you will, or a true Yeah. Bear market, for lack of a better term. Wild people, forget, right? They're like you forget. I'll work on it when, it happens, and I'll be, so you need to be prepared for this.

And I've been telling people this for the last three years, four years. You be prepared for when the market crashes. You have. You have a right. And it's not just real estate. It's, that's why I'm having you here because you are the investment guru and you know everything other than real estate. I wanna talk to you and understand what you should be doing to prepare when the market crashes because you know you have the dollar cost average.

You should do this, you should do that. You should do everything. La, Yeah, but I, have this thing and I talk about it in the real estate, and I think you're going to love this thing. Let me explain. Chart. Can you see it? I can see it. So this chart I use.  to exemplify why the psychology of people buying an investment, right?

This isn't for buying a house. I'm telling people on the way down you should buy. As the market peaks and as the market comes down, you're going see more competitors enter the market. That's when you're starting to pay more for houses. You're going to start, you. , 3, 4, 5, 10 offers on every house you have.

You have to go over the list price and buy it as is and let people stay in the house for two, or three months. You lose the leverage. When the market is at a peak and people are sitting on the fence. Yes, it's time and I'm so I'm looking right here. Can you see this part right here? That.

right where we plateau, there's less competition. And I can tell you without a doubt, I even went to it today, right here, right? These are the numbers across the 10 counties in use in the Bay Area, you're seeing prices come down dramatically. Like where's this one right here? This is Napa. Napa of all places went down 73%.

That was just last week, right? I don't, I'm going to do averages later. , but houses and house prices are coming down, right? What happens when the market comes down then more competition? Interests of market. So if you're a first-time buyer, or you're a move-up buyer and you've been struggling because you don't have a ton of equity, now is the time to buy a house because you have less competition.

You can ask the seller to work with you versus when there's more competition you have, you're at the bottom of a pile of 25 offers. And so I wanna see how you would use this to compare that to what you. Excuse me. That's great. Oh, that was awesome. Thanks. Right there in my ear. Sorry,. That's great.

And I make sure I'm following here. And basically the last competition at the top so you can actually get in because especially this was especially true, the Bay Area where you have people with the cast coming in over the top and you're just not going to compete with these folks and you're not getting home.

And that's been a story for a lot of places in the country where people wanna live. Yeah. And so if you see this as a stock market I mean it follows similar trends. You don't have that competition, I guess you do have this, and what I want, I'm trying to see how I can best describe your relationship here on the fly.

I know they just slammed this up against you, but when, the market's crashing, people will tend to, so on the left-hand side where there's more competition here, more pun competition, it's probably people unsophisticated, investors such as myself, would probably sit on the sideline saying, I don't know what the hell to do.

I'm stuck in my ways. I'm. Whereas sophisticated investors would probably go back here and say, you know what, this is the time. Yeah. On any downward trend, it doesn't matter how far down it goes, because if I continue to buy, I can dollar cost average and still come up ahead. Yeah, you're hit, you're hitting it right on the nail.

And if you, and for those who aren't made perhaps just listening to this and they're not seeing this, is a great graphic showing. Basically, supply and demand, if you will, or. Of real estate and, when competition comes up or comes down and good times to get in the market of real estate. Is that a good way to describe it, Vito?

Yeah. This is on the screen so people can see this, right? So if you're not, if you're just listening jump on, watch this part anyway and, you could say the markets as they're called for investing in equities or whatever it may. , you can't look a lot like this too, up and down, essentially.

And yeah, people react very, similarly in that on the way down, you're going to have a lot of people I'd say it's a little bit different in that on the way down where some people get excited and they, it depends on who you are. You're, right. And that sophisticated investors are who think they are, I should say

They want to time this right. They think they could just wait for the bottom. And, get to the right place to come in. And I'm going to wait. I'm going to wait, I'm going to wait. I'm going to wait. I'm getting all this bad news. It's scary. Just today, I my apple or, my Google phone, whatever you have is, I'm getting little news updates.

It's telling me all the bad news. The market went down X amount more. It's clearly a bad time, right? I'm going to wait. Rarely does success happen in the waiting place. It typically happens in the action place for sure. And it is, it's super challenging to time the market correctly.

It's just a matter of being disciplined, being patient, and depending on where you are in life, but it's not right for everybody to be in the market. However speaking for that person who should be saving for the future dollar cost, everything is a great way to go. And they shouldn't be too scared about it.

Mark it Dell. They should be having a great conversation with their advisor, just checking in, making sure that they're still hitting their goals, whatever those goals might be. Now, if those goals change, perhaps, then there's a reason to recalibrate and do something different. However, most people who are younger or have a clear patch where they're getting to and are invested appropriately just because the market went down, does not all of a sudden mean they need to recharge everything They're.

frankly, they should be excited. Cause there's the only way to make money is when things are going down. Put more in, or just know that, okay, I'm getting stuff on sale now. That's, another way to look at it. You talk about what's a good way to be prepared to cash ob obviously there are problems there, with inflation. We talked about it. Owning things though. Getting ownership of things that have an opportunity to rise in value is a way.  create future value for ourselves where cash may not be able to do that. Not saying you shouldn't have any cash, that's not the recommendation. It's just once you consider what you're doing if you're saying markets are scary, I don't want to do that.

I wanna stay in cash. Maybe you should, depending on what's going on for you. However, if it's just because markets are scary, you may wanna consider what that looks like longer term if you're sitting in cash. Think about what you're owning there. You're owning something that is getting eaten up in inflation, right?

We talked about the printing of money and what that might lead to, already leading to, and what this could look like long term. However, when you purchase real estate when you purchase art when you purchase gold, we talked about that when you purchase things, right? That, that has an intrinsic value.

And when you buy shares of ownership in c.  that are, producing value and likely to con continue producing value. You're, you have ownership, you're owning something. Cash doesn't quite do that, doesn't do the same thing. Now, what balance you should have depends on where you're at in life and you know where you're trying to get to.

So your strategy, your risk tolerance. Yeah, all that, stuff, right? There's no, there are a lot of ways to do it. There's no right answer. It's just trade-offs, right? There are just trade-offs between them. One type of asset class versus another and it just going to look different depending on where you're at and where you're trying to get to.

Gold, for example. Awesome asset, to have. Should you only have gold? Probably not, right? You buy, you could buy copper too. Yeah, you can buy copper too,. So this is a million ways they can look. It's trying to figure out what looks right for, one person, depending on where they're at. And they shouldn't be too scared by the bad news because,, I think it's Warren Buffet instead of best everybody's running one way, you might wanna run the other way.

Something like that. You have gotta get the point and that's so true when it comes to the market for sure. It's absolutely true. And that's part of the conversation. I've closed quite a few deals in the last couple of weeks and I have that conversation with people.  and I bring the subject up.

What happens if the market crashes? Yeah. The market's going to crash. I don't know when. I don't know if it's going to be this year or next year, or if, oh it could continue to go up. It could. We don't know. But what happens if the market crashes? Okay. 500-foot view. What happens if, if you buy today and the market crashes tomorrow, what's going to happen?

Your value goes down. But it doesn't matter because you're not going anywhere. You're not mo you're buying a house. Or you're investing in gold or stocks today, and it doesn't matter if it goes down because you're not selling then. You sell when you can make a profit. Exactly. Or sell when it makes sense.

That's a great distinction too. Just because something lost value is when you lost money. You lose money, paper money anyway. Yeah. You lose money stock, you convert it from cash to paper and it doesn't matter until you actually pull it back into something else. You can convert it into gold or stocks or a house or car or guns.

Yeah. Where you came up with guns. Is that like a thing people are doing, making money off of guns now? Oh, I'm sure you can make money off anything, I guess if you do collective pulls, but, so there's a whole cottage industry out there that describes the end of the. And you're buying gold. You're buying guns, you're buying cigarettes.

Because that's what's going to matter.  cigarettes. What? Tell you, when covid first happened, I went into prep mode. I was like, oh, we're going to go, it's going to be the zombie apocalypse. Went out and bought bullets and I went out and bought vodka for as stringent and. That's stupid stuff. I went to, I bought the cheap vodka from, Costco because it was like two-gallon jugs.

Yeah. Yeah. But I do. What's the word I do? What's the word I wanna use? It's I feel for people, because there's a lot of it, and it creates a lot of anxiety. You, see your account value go up over the last eight, 10 years and all of a sudden you're seeing rising costs, and now your value in this, in your savings, whether it's your retirement account or whatever it might be doing something that hasn't done in a long time.

It can create a lot of anxiety for sure, but you cannot get out ahead.  when it comes to saving for retirement, for example, we'll use that as an example. If you're buying high, in other words, investing while the market's going up and then selling low, going to cash, and getting out of the market because you're scared about what's going on as it's going down, you continually buy high or invest in rising markets and then sell off in falling markets and selling low, that's not a recipe for creating wealth.

It's not a recipe for creating wealth. So I am I'm actually actively looking at buying a place in Chico for my son, like a duplex or a fourplex so he can jump into one of 'em, then he can rent out the others. That's great. And I don't care what the price is. I do because but it doesn't matter because, at the end of the day, he's going to be.

responsible for collecting the rent and keeping that place up and running and learning a lot from it. And it will suck for him, but it's better than him paying the amount of rent that he's paying. And while he's at college, he's actually getting a skill. And if we hold onto it, and if I buy it tomorrow and the market crashes, it doesn't matter because I'm not going anywhere.

I have somebody else paying off the mortgage. I don't care. I can hold it for 20 years and then cash out when it makes sense, or when I'm dead and gone, then my son can take it over and whatever. So it's the same thing with this, right? And there are other things that we're going to be talking about, bringing people into.

By the way, everybody, we have this plan where we're talking to a lot of service professionals, not just Patrick, not just Hector, but we're talking to other people. Call, and it's, we're calling it financial intelligence because it's stuff that they just don't teach you in schools. As a matter of fact, it started off in San Jose State by us talking to veterans saying, this is what you need to understand, just to have a base level of real estate and financial advising investing.

And stocks and everything, and now we're growing it to where we're teaching you how to live within your means, having a financial budget. , we're taking some of that budget and investing it. That's where Patrick comes in. And then we're bringing in people that can do loans and, business loans in case you get into entrepreneurship or you wanna start your own business or if you're a small business owner.

And we're also talking to people that take care of healthcare for the business. And the whole reason why we're bringing him in is so that you can ask questions like, how does this happen? How does this really work? Understand, understand the whole process of the healthcare industry because it's all.

Freaking jacked up right now. Super complicated for I say the person who isn't educated in that space to understand what's going on there. It's, crazy. And he is an amazing guy. You're going to love listening to him talk. And obviously, we have real estate. In real estate investing and loans, we're also bringing in trusted trust advisors.

So like a lawyer. Family planning. Yeah. And senior care advisors. And what happens when your, loved ones pass on how to prepare for that, how to protect against that kind of stuff. So this is all stuff that. We want to teach you without having to sit down with a salesperson and be forced to buy something.

We want you to be educated and know what questions to ask before you go in and make that purchase. For that service. I'm glad you brought that up. I think for me, a couple of the things that's great about what you started there, Vito. I'm grateful to be a part of it. Thank you for inviting me to join.

That is one, they're really great people who are experts in their field. That's what you have assembled. They're not gurus they're, not excited to hear themselves talk. They actually won't be of service. They want to be able to provide value. Believe you. Better educated so you can make a better choice.

So that's really cool. The other thing that's great about 'em is that they're accessible. You're, putting together people who are resources and tools that are accessible to the community. They're not this great podcast that listens, that a million people are listening to and that good luck getting an appointment, right?

No, these are people in the community that are accessible and, are professionals and experts in their field and really good people. Thank you for doing that, man. It's a really great crew that you're putting together. It's, motivation for us because one, I learn, you learn, right?

Yeah. I can't a jack of all trades is a master of none and I, can't, I always get questions like, what happens if this you have to talk to a lawyer. What happens if, we have to talk to a tax guy? And I get these questions. I have a thousand questions that I get answered.

All the ti asked all the time. I know how to answer 'em, but I can. , I can't because I'm not a tax guy. I'm not a lawyer. Yeah. I go, these are the questions you should be asking this person. Like Proposition 19. Right? And this is how I answer it. You should know about Proposition 19. From my understanding, this is how it is.

But lets in your scenario, I cannot answer any tax questions and I can't tell you definitively what it means to that assessor in whatever county you're moving to. So let's do two things. Once you're on board, it's called a tax. And ask those questions and let's call the assessor and ask those questions so that you're fully aware.

And I can do those questions for you. I can ask those questions for you, but you're not there physically, so you can't ask questions on the spot. So why, don't we do that? And so I'm more like a Sherpa guiding you up the mountain. Sure. And that's how I see you, right? You're a Sherpa when it comes to the financial part of that.

Yeah, I think it's a great way to frame it. I think there's a misconception out there that a financial advisor should know all the intricacies and have this magic formula for creating the most amazing investment options and choices that are guaranteed somehow to provide these amazing results and returns that protect somebody from ever losing any value or money.

That's not what a financial advisor is. Anybody who, who knows.  what's happening in the future or can guarantee anything when it comes to what the market will do. Man, run away. That's Bernie Madoff. Yeah, that's Bernie Madoff. Exactly. Yeah. I'd say most of what I do is mostly is, basically understanding where people want to get to, making sure they feel heard and trying to figure out a plan to get there, and then making sure we stick to the plan or change the plan as things change.

That's really it. And there's no magic perfect investment. There's no magic. Perfect.  the formula for creating wealth that will create this amazing return every year. There's the, there's this author, I can't think of his name right now. Gosh, I'm giving him attribution here. I think it's Bill Murray or his last name's Murray, I think it is.

Anyways, he's a, I know Bill Murray. No, not that one. , oh, I forget his name right now. Somebody will probably correct me at some point here. Anywho he has a fantastic advisor, and the financial advisor is very successful, had a long career, and put out some great books. And one of 'em he put out for clients called Simple.

Inevitable wealth. I love the title and I read the book and, it's a very simple recipe for staying the course, especially when it comes to times like this, turbulent times like this. And I feel for people for the anxiety that's going on. However, if you just stick to the fundamentals and that's saving, paying yourself first, and making sure you're diversified you will come across that finish line.

Better off than. If you invest emotionally and pull back emotionally and react emotionally it can be very challenging for sure, and that's where an advisor helps, is just to help create space between somebody who's saving and reacting to the market, creating some space to have a conversation there so that somebody can stay the course if you will.

Does that make sense? A long time ago, before I ever met I was in my twenties and somebody said, you need to start packing away from the future. I'm like yeah, yeah Yeah, It's not that it's, so far away. I don't have time, and here I am I'm 55 this year. And, it happens sooner than it does, and I'm not saying don't go on vacation.

When we would never tell you, don't go on vacation. Don't enjoy your life now. But definitely puts a portion of it. Talk to a financial advisor, talk to a tax planner, talk to people. Talk to a team, somebody, something like what we're assembling right now. If you're not in our areas and it doesn't make sense for you to, do that with us.

Talk to somebody. Talk to a team of people. You have to know. Yeah, all the questions and the whole purpose of why we're doing this whole financial intelligence thing is imagine having 10 different professional services, health, financial, real estate lending, and blah, blah, blah, blah. What if we broke down the silos and everybody was talking on the same level?

What if that happened? And that's how I pitched to all these guys. They're like, we need to do that. And that's the whole idea. And this, back and fourth banter allows you to have those educational questions. And obviously, if there are ever any questions you can do, drop a DM down below. You can email us, you can text us, what have you.

Absolutely. Great way to put that. Vito. And the last thing I'll say for folks on the whole market situation lately is to buckle up. It very well could get worse. It could get better too. Who knows? I don't have a crystal ball. I just know that when things go down, there are always opportunities.

When things go up, there are always opportunities. And there's not, it's not all bad news. There's always an opportunity no matter what the market is doing. It just depends on what, you wanna do and where you're trying to get to and, how long you have to save and, what's the plan.

Yeah. Cool. Patrick, we gotta do this once a week, man. Once a week. Once a week. I don't know if I can handle you once a week,. Depend. Time avita. Once a week, let's do it. Oh yeah. Absolutely. Record the army together after all. Yeah, absolutely. Do you know what's funny? It's. I have such respect for everybody that served and everybody's army Marines, you guys never get together.

You're a bunch of crayon eaters. Marines? I was like, yeah, you know what, that's Abso. Absolutely true. It's funny, but we're still that, have that camaraderie and it doesn't matter. I don't care what branch you That's right. But, we bust each other's chops. It doesn't.

That's all part of the fun for sure. It's all part of the fun. Before I let as I let everybody go, I wanna share with you this last thing. It was just this funny, stupid joke and everybody knows I have stupid jokes, I saw this a while back when prices started going back up, but yep that's, us at the Pump guys and I think it's poignant that we bring this up because it's not going to get any, any better for a long.

I'm just reading it here. Ah, yeah, totally that's funny. I wanted to have a little conversation about the last Czar on Netflix. I will start doing this live thing about, not a life, but like a recording, just a fun recording on all the streaming videos that I've watched at night when I can't sleep because I watched that Madoff thing, and now I'm into this, the last czar.

No, that's very good, happy stuff to look at before you go to bed. For sure.  if I can't fall asleep, I can't fall asleep and when it's, I try to go to 10 o'clock and then I fall asleep. But then invariably it's two o'clock, three o'clock, four o'clock I get up and then I can't go back to sleep.

Oh. That's what's will happen to you in 15 years, man. It's already happened. I have a reason though. I got stuff going on. That's probably why it doesn't happen. Hey, great topics today, Vito. Thanks for bringing me on. Next time we want, we might wanna bring up the secure Act 2.0. I dunno if that's something, you've already gone into with anybody.

I have no idea what that is. So let's, book, let's it up for next Monday. Let no, all right, cool. Let's do it. Thanks, guys. All right, brother. Have a great day. See you. Bye.

Talking with Patrick McAndrew today to learn more about what's happing from a Finance point of view. What should we do now? What should we have prepared? How can we get through this without a lot of scratches? Vito Scarnecchia Realtor®, Broker, Veteran, Dad DRE#: 01407676 Website: update your home value: RELOCATION@ABITANO.COM If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: Home Buyers Course YT IG FB LI Blog POD Professional Photography by Kim E / Compass site: video post-production service for business marketers. $5 trial- Use Vito50 when you sign up… Video Marketing Course for Realtors Try Streamyard! Try Melon video streaming