Gen Z Sports Betting vs. Investing: A Ticking Time Bomb for Retirement Savings

0:00This is Invest Talk from KPP Financial. Helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero. Good afternoon fellow investors and welcome to the Friday, September 4th, 2026 edition of Invest Talk. I'm your host, Luke Guerrero and I'll be with you over the next 45 minutes before we send ourselves off into what is hopefully a relaxing long weekend. Yes, that's a reminder. We will be having a best of show on Monday because it is a market holiday. I still encourage you to check it out. Here's some great questions and hopefully some great answers as well. That being said, before we talk about today's market performance and run it down to those show topics, let's tackle this color question now. Hi, this is Dave Collins from Fremont, inquiring about Broadcom,

1:02AVG-O, wondering if it's a good time to add into the position. Currently below it's 200 day moving average, but my understanding was it looks like it has some good forward guidance. Love to hear your answer, thanks. Stick a look at Broadcom, take your AVG-O. It's a name that we actually used to hold in a couple of our strategies for our clients. It is a semi conductor and infrastructure software company. So they design these custom AI accelerators or ASICs for hyperscabers like Google, like Meta, OpenAI, plus they also on the side do networking chips, enterprise software. And they have been one of the primary picks and shovel plays for the AI infrastructure buildup. And the company is slightly positive here to date up 3.41%, though down 14% over the past three months.

2:06Over the past year, it's only up 16.92 coming off of a 2023, 2024, 2025. It was up 99, 107, and 49% respectively. They recently reported earnings and nearly as recent as recent can be because it was September 2nd. A revenue was up 86% year over year. That was a beat. Gap net income was up 216%. Diluted EPS was up 215%. And it's a company whose margins have held pretty steady actually expanded a bit because EBIT margin has been on the march up from 29.6 in 2024. Up to 40.9 in 2025 projected to be 66.8 this upcoming year. So you're seeing this revenue growth. You're seeing net income growth. You're seeing free cash flow darn near double from 26 billion to 48 billion. And you're seeing margins expand. Everything seems to be good to me there yet in spite of this, stock fell a little bit post earnings, clawed its way back.

3:10Slightly it didn't fall off too much. In terms of guidance, which you mentioned, Q4 2026 revenue was guided up 93% so slightly below the analyst consensus. Even though they guided higher, it was lower than what the market expected. Still, their core business, AI 7 conductor revenue expected to reach 21.7 billion in a quarter. That's up 236% year over year. And they declared a solid dividend about 65 cents per share. Now, the best six months, I mean, the stock has really been for the most part consolidating. It jettisoned up to about $430 per share back in May. And then it's been slightly down, training about 357 right now. Now, I think that you can't deny it was a blowout quarter. They had massive revenue growth at a huge 35% EPS beat.

4:15And most importantly, in my opinion, they had massive record-free cash flow. But the Ford guidance was kind of shy of what people expected. It's a reminder that in the AI trade, the size of the beat matters far less than whether the next quarter's bar keeps climbing at the same pace that investors have come to expect. And the more you have these blowout quarters, the more that difference matters there. I would even say it's cheap. I mean, it's trading at 20 times price to forward-looking earnings. I think it's wanting for a catalyst in the near term. I still think it's a great picks and shovels play. And not too expensive, albeit not cheap. So I think Brad comes to a solid name. It's instrumental in the build-out to your AV-GO. Thanks for the call. Well, yesterday we had a solid discussion, and by discussion, I mean just me talking to myself about the Fed rate hike chances in September.

5:15And if the warning Kevin Worsh gave in Jackson Hole was just bluster or bit of a game changer, we also answered a listener question on Tyson Foods to get to his end. So if you want to answer that question or hear more about my discussion on the Fed rate hike expectations, I encourage you to check out yesterday's episode of Invest Talk. Remember, the best way to never miss an episode is to subscribe wherever you get your podcasts. On to today where we have a bit of a gear shift, I would say, in a focus point because we're going to be talking about Gen Z and their Proclivity for Sports Bedding rather than Invest It. It is in a lot of ways a ticking time bomb for retirement savings because a new survey found that 52% of Gen Z investors have redirected money earmarked for investing into Sports Bedding. That's pretty startling figure and a lot of ways reveals a generational shift in how young people think about risk as well as wealth building.

6:19So this trend has serious long term implications for retirement readiness, but also for financial markets as well. Also got a couple other important stories to bring you today, including one on the great rent divergence between different geographical areas. Another story on student loans and should we have time at the end of the show, the 23 hour trading day. We also have some voice bank calls ready to plan, including one on the State Street Spider S&P 500 ETF Trust to this Tigress PY. And another on 529 plans. We also have some questions that came in from the comment section of the Invest Talk YouTube channel. Going into break, please remember you can call anytime and leave your questions on the Invest Talk voice bank. And if you're listening right now via our live streamer on Am 1220 the Bay Area, you can call now at 888-99 chart. When you come back, we'll talk about today's market activity. It's official. Total lifetime downloads for the Invest Talk podcast are now more than 63 million.

7:31Luke Guerrero is here now taking your calls live. Invest Talk, 888-99 chart. 888-99 chart is the number if you want to get through live before the long holiday weekend. Before we answer another listener question, why don't we? Die the end to the market today where stocks reversed some of the gains we saw the past couple days. The Dow is down 51 Bips S&P 500 down 38 NASDAQ down 29, or else it's 2000 though finished positive 25 basis points on the day. Now the S&P and NASDAQ in spite of this and really in spite of how we started off the week still still locks in pretty modest, weekly gains. Some of the names that have struggled or continuing to struggle software, a big struggling Tesla not doing particularly well today, energy, insurance names, amongst the worst performers on the day.

8:35The same time we saw a bit of a resurgence from semis, from memory names, from networking and communication names, from building products, housing related retail names. On the side of the bottom, some of the bonds are a bit mixed, some curve flattening, short end yields were up, 2 to 3 basis points, though did come off of the highs we saw earlier in the trading session. Dollar index up 20 Bips Gold, off 1.4, silver down 1.4 is well-encourued, oil, up about 20 basis points on the day. Now overall, there's kind of a whipsaw of a week, you know, or rather of a week, the market really ending on a bit of a defensive note with breadth pretty solidly negative. And of course, this comes on the heel of what was a very strong, certainly stronger than expected, August jobs report, but it's kind of unclear if any of that is going to have a huge impact on September FOMC, especially because we get CPI data out next week.

9:45And the current narrative is seemingly focused on what we talked about yesterday and what Worsh talked about last Friday, which is persistently above target inflation. Other than that report, you know, it was a pretty quiet session, not much news ahead of the Labor Day weekend. We did get some earnings, notably software's results, pretty underwhelming. And then from a geopolitical front, nothing really incremental when it comes to US, Iran conflict. Now, diving in a little bit to that jobs report, August non-Farm payroll's employment was up 162,000, I'm sorry, well ahead of the 55,000 consensus, and certainly ahead of July's 21,000 number, which was revised up to 23,000. The unemployment rate held steady at 4.1% as expected labor force participation actually ticked up after we've seen some consecutive drops. Average hourly earnings up 30 bips month over month was in line with consensus, following that soft July number we saw.

10:48So overall, very resilient economy, very resilient labor market, maybe giving the Fed a little bit more room to hike rates. Looking ahead to next week, I know I've mentioned it a couple times, I'll do it one more time. The market is closed on Monday for the Labor Day holiday. Tuesday we're getting NFI B small business optimism in New York Fed inflation expectations and consumer credit. Weekly ADP private payrolls is out on Wednesday, PPI and claims the highlight on Thursday and CPI and preliminary university, Michigan consumer sentiment, as well as inflation expectations cap off the week on Friday. So we got plenty of time, so why don't we answer a listener question now? Hey guys, I have a dollar, still almost one years old, and I'm looking to start paying money for her and I'm just wondering what the best options that would be. I've heard you guys type book 529 plans before, I'm just wondering if I go that route, you can just give like a 30 second overview of what that entails, and think I've heard in the program before that you can actually buy a 529 plan for any state.

11:50You don't have to actually live in that state, that's not the case, you can just go over one or two options, which ones would be the best state to know it. Thanks so much guys, do appreciate it. Yes, so 529s are great ways to save for your child's or a child you like, you know, family members child, somebody who you're close with, who you want to save for their education you can do it as well. It doesn't have to be your immediate child, but what you do and you're correct there, you can open up a 529 in any state regardless of where you live. Now I would encourage you to check your home state first, because I think roughly 30 states offer state income tax deduction for contributions to their own plans. So if your state has no income tax, no deduction, you know, shop nationally looking for those lowest fees and those investment options, we typically see in terms of the best couple plans Utah is consistently rated number one, their expense ratios are incredibly low, their investment options are excellent, their Vanguard based investment options Nevada Vanguard 529 also has Vanguard index funds, those are rock bottom cost.

13:03You don't have a state residency requirement New York's plan is Vanguard managed and New York residents get up to $10,000 state tax deduction 5,000 if you're single parent. So like I said, options are great. There's a lot of options out there. Certainly do your own research as well and keep in mind that there can be benefits for you if you live in the state in which you have the plan. Thanks for the call. I were headed to break, but don't let that stop you. I'm here and I am ready for your question. So pick up that phone and dial that number 88899 charge. Got a question for Justin or Luke, you're the best person to ask is isn't a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest into better stocks. Invest talk is ready 24 seven. I would really appreciate if you could give me an entry point for a company called metronik MDT call invest talk 88899 chart or post your questions on the invest talk YouTube channel.

14:19If invest talk has helped you become a more informed investor, but now you realize you'd be better off if you had someone help manage the entire picture. KPP financial is ready to put their focused efficiency to work for you. So learn more, request a conversation or get a free portfolio review. You can start now at invest talk dot com. After roughly four years of falling or flat rents, US apartment rents have turned positive up 90 basis points year over year in August with occupancy at 95.5%. Now that's the eighth monthly increase of 2026 and the supply wave that broke the rental market.

15:20Seems to be ending. Complitions dropped to about 340,200 units in the year through Q2. That's the first time below the decade average in about three years. The pipeline of new apartments that flooded Sunbelt markets from 22 to 25. It's drying up fewer starts higher construction costs and also importantly tighter lending standards that has choked off future supply. That meanwhile demand absorbed about 271,300 units that's below the decade average of 340,000 but still strong enough that occupancy is climbing. But the national number and we talk about all the time how large scale data the top line doesn't tell you much. Same situation here. The first question number hides a split that's getting genuinely extreme. Safer and Cisco rents are up 14% San Jose 8.7 Virginia Beach 6.5. These markets are where very little new supply was built because local regulation,

16:24the wind bees high construction costs all those things tend to keep developers out and when things are scarce and there's demand. I don't got to tell you what happens prices go up on the other side you have places like San Antonio with occupancy of just 93% rents are down to or sorry 3.7. Charlotte Tampa Houston down nearly 2% these are markets that built incredibly aggressively during the pandemic now they're drowning in supply. Houston has 358.9 million dollars of apartments with CNBS loans in special services independent landlords. There are on time collections nationally are 83.2% multi-family and OI growth is down to 1.8% so that's a bit of an economy there. This same asset class that is producing 14% rent growth in one area and special servicing transfers in another geography is doing more work than sector right now.

17:25If you want to reach or rental property multi-family isn't really a single trade anymore it's two completely different markets wearing the same label. And this matters a lot for yes your portfolio especially if you own a multi-family home. But if it matters for inflation in the fed shelters about a third of CPI it's 3.2% your over your increase in July was roughly 2 thirds of the entire monthly CPI increase. So if completions keep falling while demand holds and that's kind of what the data suggesting does shelter inflation reaccelerate in 27. Because if it does the fed super cent target say bye bye. And that changes everything about the rate path. Now if your renter wondering whether the weight and rent trade still works depends where you are. If you're in the overbuilt sunbelt yes renter flat to falling concessions are all over the place landlords are competing for tenants in coastal markets.

18:27Rents are surging the math is shifting the rent savings that made waiting attractive are being eaten by 8 to 14% annual increases and at some point the weight and rent trade becomes the we're paying more every single year trade. Let's keep things going and roll in another listener question now. Hi this is Daniel from cross the Texas calling up the stock ticker HRB H and R block was interested in your thoughts on this one and what do you think is a good entry point thank you. H and R block ticker HRB is the how big is this guy now it's consumer services company so they do tax tax return preparation so the big competitor to turbo tax into it. It's a far smaller company than into it it's about 6.2 billion dollars in its market cap had a bit of a drawdown heading into 2026 and then kind of flat line for a little bit but it's been doing really well this year specifically in the last three months it's up 30.93% in the past three months it's up 12.57% year to date revenue look pretty solid last quarter that was up 3.1% that was a beat just a bit.

19:48So that was a bit by roughly three to 7% revenue guidance held steady ebid the guidance held steady. You know I think one of the best things that came out of the most recent guidance is a dividend raise of about 10% that certainly was a boon for the stock. And the stock had already run up about 17.4% over the month heading into earnings which in a lot of ways outpaced not only the overall market but the industry post earnings is a huge pop it kind of drew down a little bit. This is a little rough right that had a genuinely strong finish to their rescue record fiscal year and the market rewarded it but the guided jump in the effective tax rate next year will probably make 2020 70PS growth look more modest on paper meaning the underlying business although it looks strong this year is likely to snap back a little bit to reality in the coming year and that's why this things trading at eight times priced for looking earnings. So it's not a run nothing really exciting in my mind that is take your HRB H and R block.

20:55All right folks when we come back more answers to your finance and investment questions. At KPP financial accountability means more than advice it means we invest alongside you through our parallel investing approach when we recommend an investment for clients one or more KPP principles invest their own capital at the same time. Same day same price same percentage if your portfolio moves ours does too that is alignment that is transparency that is the KPP difference. Visit investtalk.com to get your free portfolio review. The weekend is here or almost here but you've got finance and investment questions so step up and call in invest talk 888 99 chart.

22:04Betterment published the results of its 2026 retail investor survey recently what they did is they pulled a thousand US retail investors across four generations and one number which we've already teased a couple times here. Give me a bit of a bit of a pain in my chest 52% of Gen Z I'm using air quotes you can't see I'm investors said that they have redirected money originally intended for investing into sports gambling. In the past year actually redirected it money that was supposed to go into a brokerage counter retirement fund ended up on a sports book 26% describe sports betting as a deliberate component of their long term financial strategy. Now I'm rubbing my head 14% redirect fund multiple times per month and only 34% of respondents who are Gen Z do not participate in any form of sports weight during it all two thirds of the youngest investing generation isn't investing their gambling now it's not all their money but it's still an important portion here.

23:29Broadly speaking gambling is doing fine in America. Americans legally bet nearly 167 billion dollars on sports in 2025 alone that's up from 13 billion in 2019 seven years 1200% difference. That is in a lot of ways an industry that has now captured a public. Now I want to be careful here I don't want to be the guy yelling at clouds right every generation makes financial mistakes. Lot of boomers loaded up on individual stocks in the 90s Gen X day traded their savings during the dot com bubble millennials lot of them chase crypto and bought those NFTs every generation has its version of I think this is going to be different I figured out a shortcut but sports betting is going to be a lot more structurally different from those mistakes.

24:29When you buy a stock even a speculative one even if you're over concentrated and underdiversified you own a fractional piece of a business if the business does well you do well. Over time equities as an asset class have returned roughly 10% annually there's positive expected value there the house does not take a cut of your upside you don't need to be right 52.4% of the time just to break even. The sports book takes a margin on every bet the vigor the juice typically file 4.5 to 10% of the wager to break even against the big you need to win about 52.4% of your bets on standard odds professional sports better so once you do this for a living with teams of analysts and proprietary models average like 53 to 55% win rates. The average recreational better wins about 45% of the time so you can see the math here is intentionally deliberately designed to take your money slowly but reliably. The compounding cost to diverting even modest amounts if you're one of these people you're not going to want to hear it because if you're 22 years old and you take $200 a month or investing into sports betting that's $2,400 a year.

25:43If instead you invested it at the markets historical 10% average annual return in 40 years at 8 62 that $200 a month has become approximately 1.3 million not 2400 times 40 that's that's 9600 or 96000 1.3 million dollars that is compounding you are giving up and because sports betting has a negative expected value the $200 a month is not growing it's being ground down. Sarah Levy betterment CEO said it directly when a prediction marketer sports books starts to feel like a retirement strategy we have a problem and I'd go even further it's not starts to feel like 26% of Gen Z already treats it that way the problem isn't something out in the future the problem is in a lot of ways now and the social media angle has absolutely amplified the damage 60% of Gen Z gets their financial news from social media. Up from 45% in 2024 only 21% cited a financial advisor social media is where sports book ads are heavy we're betting influencers show off their wins without disclosing their losses and whether the line between investment content and gambling promotion has been completely erased.

27:01Tech Talk doesn't distinguish between a video explaining dollar cost averaging and one showing a $50,000 parlay hitting they're served by the exact same algorithm and the gamification of finance and financialization of gambling have merged into a single ecosystem with Gen Z clearly the target audience. Northwestern Mutual found that 80% of Gen Z respondents who feel financially behind and are investing in speculative assets believe those investments will help them reach their goals faster than traditional methods 80% they believe it works better than the thing that actually overtime has proven to work. It is far likely that you listening out there are not a member of Gen Z because there are more people who are not Gen Z than there are that are Gen Z. So if you're a parent or a grandparent listening I think this is a conversation worth having with those in your life that are Gen Z not a lecture especially kids don't want to be lectured talk about the math talk about the risks about what $200 a month actually becomes over 40 years.

28:15Because the sportsbooks are spending billions of dollars to make sure nobody hears that. And if the people who care about these people who are gambling away their life savings don't tell them nobody's going to keep things moving and segue back to the Invest talk voice bank 888 99 chart. Hey Invest talk real quick observation really love y'all so pump for music I dig it. Okay, so I'm in my late 50s I have a mix of SPY along with individual stocks and areas like metals energy defense and technology. I usually try not to put more than about 5% into any one stock. My question is should I be putting more of my money into SPY and keeping my individual stock picks as a smaller part of the portfolio. And if so what would be a good percentage split appreciate the show guys I'll listen to the podcast for the answer have a good day. That's a great question and I wish I had seven hours to answer this because there's a lot that I want to dissect here so the first thing is is you're describing essentially what's a core satellite strategy of your core holdings it's your diversified ETF.

29:23And then you have your satellite holdings. Your goal is to invest in things that might be more oriented towards growth a bit riskier and then have the correlations between that and all your assets in the S&P ETF lower your overall risk profile. Something we've talked about a lot though that I think is missed is that the S&P 500 is yes less less risky than its parts. But it's become less and less a diversified ETF now meaning I think the argument that the S&P itself is your core can be a little flawed. So much of the index is tied up in text so much of the index is tied up in seven names that it isn't your father's index. And so I would argue your core holding should be even more broadly diversified should be more oriented towards names that aren't just the mag seven or the AI names of the day.

30:29I think the answer to this question also depends wholly on how old you are your risk tolerance level. But I think the point I want to hammer home here is don't consider the S&P to be the safe part of your portfolio. I've said this so many times on the show to clients one of the most uncertain things about investing isn't what your return is going to be but it's when you need your money. Somebody who did everything right heading into 2008 and needed their money in January 2009 were out of luck because volatility in your portfolio matters so lowering your overall risk is critical when deciding what the core of your portfolio is going to be. Thanks for the call. It is Friday and on Fridays I like to run down some key benchmark numbers for you the two year treasury is at four at 37 last week it was 436 243 weeks ago it was 64 basis points. The 10 year for 77 today for perspective last week it was 473 241 weeks back it was 1.762 gold 44 13 per ounce today that is $42 less than last week.

31:4037 weeks ago is 3348 and 236 weeks back is 1806 silver 6581 per ounce that is 57 cents less than last week 134 weeks ago is 2280 and looking back 234 weeks silver was 2394. Oil 90 dollars and 84 cents per barrel that is $7.44 higher than last week 102 weeks ago is 6779 144 weeks back it was 7430 and 243 weeks ago it was 66 62. National average for a gallon of regular gasoline is 414 that is 6 cents higher from last week higher than 170 weeks ago it was 356 but lower than 218 weeks back when it was 425. In California gas is $5.80 per gallon I saw it was $7.00 diesel was $7.15 at the Costco by me at Costco where gas tends to be cheaper okay I'll stop ranting.

32:42$5.80 per gallon that is 16 cents higher than last week 147 weeks back it was 532 223 weeks back it was 587 in Nevada or Nevada depending where you are. Hey Jorge asked Tom is it Nevada or Nevada I've been told it's Nevada. Gas is averaging 494 per gallon today that is 86 cents less than gas in California. Let's go with another listener question now. Hi this is Adrian from Texas and I had a question regarding KDP, Curric Doctor Pepper it's at a good time based on the financials to get in. It's like a KDP which is a Curric Doctor Pepper an interesting combination of drinks I would say. For those of you who don't know Curric of course the coffee company they do marketing manufacturer distribution of not just coffee but a whole bunch of IP they got they got Doctor Pepper which is obviously in the name of the company they got Canada dry they got Snapple and W7 up Sunquist Sunquist Squirt which is one of my favorite sodas that nobody seems to like it's great fruit soda and a bunch of other products.

33:52Now this company is a 45 billion dollar market cap company it's about 16.3% 5% year to date up just under 12% over the past 52 weeks and it was really ranging for a while between 30 and 40 dollars per share. It dropped off in August of last year it is since climbed up back a little bit to 30 to 59. Taking a look at the financials here because the most recent earnings were reported on August 6th net revenue had a beat by about 90 bips but the you so this is this is a great example. If you look at this you see revenue in 2024 15.35 billion revenue in 2025 16.6 billion revenue in 2026 expected 26.3 billion you look at them go whoa what is going on here well it's almost entirely due to JDP's acquisition now being consolidated so the legacy sales was up 7.3% but the net sales is up 75.6.

35:02So it's really important to dive into these numbers and understand what the growth looks like and so this period it becomes a little a little bit confusing. Now in terms of guidance they guided upwards on the total net sales including about 8.5 billion of that from this acquisition the legacy business is expected to grow 4% to 6% they're expecting and hoping towards the high end and you saw modest modest reaction on the day you saw the net sales. But it started to taper off after the most recent earnings now it's ranging back in the 32 level now I don't want to diminish the beat right it is a beat on both top and bottom line and reaffirming your guidance but there's a bit of tension here you have the core US coffee business and it's softer than a lot of the market anticipated. Then you have that revenue growth being purely acquisition focused it's not organic strength so the real story here when you say good earnings is less about this quarter and more about how cleanly the integration proceeds ahead of the planned split in 2027 so I would take a step back I would want to see what the growth is in their traditional segments for another quarter before I would look to enter a position here.

36:23And in terms of valuation I mean it's trading far below its average here it's low in for a reason that is cured doctor pepper to your KDP thanks to the call. You know one thing I want to plug on our invest talk YouTube channel because yes we do do YouTube specific content Justin has his week end video we have our deeper focus segment we have old invest class from content but I think one of the things that is always good to revisit especially because so much of it we designed it in an evergreen way to help educate you all is that up to our webinar series. I think it's great on multiple fronts one because we bring you a topic and two because there are questions that are answered live from listeners just like yourself which help us steer it towards the things that matter most to you so even if you haven't participated in one yet I encourage you to head over to our YouTube channel invest talk with two T's in there and check out our webinar series while you're at it leave in the comment section what you would like us to talk about next this invest talk.

37:30I'm Lou Guerrero we have one goal here and that's to help you achieve your financial freedom or we're continues after the break so if you have a question that is burning in your mind that you cannot wait to have answered until Tuesday because Monday's a holiday pick up that phone and dial eight and eight ninety nine chart. I would like to know more about a company which I've been tracking for some time Luke Guerrero is here and ready to tackle your questions and I was just wondering. Are there any investment accounts with different banks that you would recommend something that may offer good resources don't forget to call invest talk eight eight ninety nine chart. Every investor is working to build a secure financial future how they get there and when they get there that depends on many variables the more you learn about how the market works the better your chances so don't forget to call invest talk eight eight ninety nine chart.

38:43Roughly seven million federal student loan borrowers are currently parked in four barons from the S A V E save program and that four barons is ended. Services started sending ninety day notices on July 1st most of those four barons periods expire by the end of this month and then payments are set to restart in October and November and there's some detail hidden in this that could cost people thousands of dollars because if you do nothing you are auto enrolled in the standard repayment plan that's the plan with the highest monthly payment of any repayment option it's not income driven. It does not adjust for how much you earn is a fixed amount based on your loan balance and a 10 year payoff schedule. For a bar or who has 40 thousand dollars in federal loans at six and a half percent the standard plan payments about four fifty four per month an income driven plan could be one fifty to two fifty depending on income and family size the differences.

39:50Well math to three hundred month money that comes out of a household budget that's already dealing with four percent food inflation rising insurance costs for dollar gas. The new revised adjusted pay as you earn plan and that is rap because we always need an acronym launched in July it's the replacement for the safe plan that was struck down by the courts. Income contingent repayment and pay as you earn or sunsetting within two years so if you need to switch to an income driven plan rap or standard IBR or your options but you have to actively choose doing nothing defaults you into the most expensive plan. Understandably there's going to be some credit consequences here. Delinquencies hit your credit report at 90 days past due defaults occur at two seventy and may trigger wage garnishments tax refund offsets collection fees.

40:51Still more to the link with these had just fallen to seven point eight three percent from twelve point eight eight percent in the prior quarter but that decline was almost entirely because payment was paused when seven million borrowers start getting bills again. I'm guessing that numbers going up. And this isn't just a young person's problem parents grandparents who co-signed loans or took out parent plus loans. They're just as affected. The four of parents applied to federal loans regardless of borrowers age a retiree with parent plus balances is about to get a payment notice that was supposed to restart right alongside their fixed income budget. So the action item straight forward log into student a duck up before the end of September check your loan status if you're in save for parents select a repayment plan. RAP or IBR before the auto enrollment kicks in. It'll probably take you about fifteen minutes but it'll definitely cost you a lot less in the longer.

41:52Do we have enough time for a quick question. My question is about how long the network stock to go P and W how is this wondering what your opinion is on future performance of the stock and it's continued to hold the stock or sell it and kind of think about it that I've gained over the years. So Palo Alto Networks it's a cyber security company I got to answer this one pretty quickly cyber security is incredibly important it's going to continue to be important as more people are moving towards cloud infrastructure. This company in particular has had a pretty solid time it's revenue beat it's earnings beat it's actually a name that we've kind of been looking at when we've been thinking about how to diversify within the tech sector. It's already up 80% year to date which means its valuations have started climbing as well albeit it's now trading at 78 times price to forward looking earnings you know this is one of the ones for me that we're keeping on our watch list for now because it's a little bit expensive but in short I like the company just not at these prices thanks to the call.

42:59Well we did it we answered one final question before we head off into the long weekend I'm Luke Guerrero and I want to thank you for listening and encourage you to tell your friends and family members about our free podcast downloads you can of course find them at iTunes and Spotify while you're over there really appreciate it if you left us a rate and review. Additionally I've already said it once but I encourage you to check out our YouTube channel Invest Talk with two T's and maybe over this long holiday weekend head over to invest talk.com and schedule your free portfolio review because I think it's always good to get a second set of eyes on things before something goes wrong not after. Independent thinking shared success this is Invest Talk enjoy your long weekend. Invest Talk is a trademark of KPP financial because of the nature of the interactive dialogue inherent in the format of this program it's important for the listener to understand that not all comments made will apply to them specifically nothing said shall be taken to be investment advice or shall statements on this program be considered an offer to buy or sell security because such advice is rendered solely on an individual basis and at times will require that the investor review a prospectus before investing.

44:16Invest Talk is a copyrighted program of Klein Pavless and Peasley financial a registered investment advisor firm which retains all rights for more information regarding KPP's investment advisors call 1-800-557-5461. Thank you for listening and your comments and questions are welcome on our 24 hour listener line at 888-99 chart.