Money Talk 9-19-26

0:00Money Talk, the Annex Wealth Management Show is hosted by Annex Wealth Management, a fee-only registered investment advisor. Important information about the qualifications and business practices of Annex is available at AnnexWealth.com. Different types of investments involve varying degrees of risk. Please consult with a qualified fiduciary advisor about your specific situation. Annex Wealth Management is a local fee-only fiduciary providing investment retirement, tax and estate planning. Know the difference. Financial planning at every level. Annex Ignite. Annex Comprehensive Wealth. Annex Private Client. This is Money Talk, the Annex Wealth Management Show on WTMJ. Hot Hot Hike. Team Fed. With a bit of a front office adjustment. This is Money Talk, the Annex Wealth Management Show. Great to have you listening. Are the radio or the Annex Money Talk Podcast, chief economic strategist, Dr. Brian Jacobson is here.

1:03Hey Brian. Hey it's great to be here. Anne CEO of Annex, Dave Spano. Thanks Joe. Yeah, you know the highly anticipated Fed meeting was earlier this week and the market was pretty good about estimating what was going to happen and they were correct. It was a quarter point raise. And ironically the 10 year treasury and the 30 year treasury went down. Yes. Right. So the fun thing about is the market was setting the rate. The rate went up and then the thing came down. So the really the important piece is why did it happen and of course where did we go from here? Oh absolutely. And it is not unusual to see the longer term interest rates. So the Federal Reserve, they control that short term, the Federal Funds rate. Those longer term rates, they can march to the beat of their own drummer. But those do sometimes go down when the Fed starts hiking because what it can do is signal that well gosh the Fed is on the case. They are actually concerned about inflation. They're going to take action and it's those inflation expectations that can get built into those long term rates.

2:05So we did see inflation expectations come down a little bit. Not a lot because a lot of what has been pushing up the longer term interest rates have been things like dead issuance by hyper scalers. You've also got the government issuing a lot of debt. You also have people getting excited about growth. So you've got those other factors that have been really moving those long term interest rates. Now where do we go from here? I think that what we saw with the summary of economic projections, you have referred to those as the dirt plots. Not top. That's right. What those are showing is that about 12 or 14 individuals on the Fed are thinking that maybe we're going to get two hikes total this year. So that would either be another one in October or in December. Probably December would be my guess if they do follow through one. And even if it's the first quarter of 27, it's rarely just one hike. Yeah. So that would be unusual if they just hiked at once. There might be another one near the end of the year or early next quarter.

3:07And that means interest rates would be pushed up a little higher at least on the short term. And why did this happen? It happened because inflation has been running hotter than has been expected. And a lot of that is energy and food. So inflation at 3.6%. They had to raise the rates to at least get to a neutral rate. That's right. And I thought it was interesting how chair worse when he outlined what were the reasons for the hike. It was inflation because growth has been good. He said that it seems like with the unemployment rate where it is now, you doesn't take a lot of new jobs to really keep that unemployment rate low. And he doesn't believe that it's too low. Like it's going to cause some sort of runaway inflation because the economy is running too hot. He said, no, this is real. It's got substance to it. It's not inflationary. It is the inflation stuff that's coming from a lot of his geopolitics. He really did call that out. That their assessment was that what's not only going on with the price of oil, but the price of diesel and gasoline.

4:08That's what really has them concerned. Because even if they get more oil coming through the straight of her moves, refineries in Russia have been damaged because of the Russia Ukraine war. Refineries in the Middle East have been damaged because of the conflict there. And so even if we get more oil and oil prices go down, that doesn't guarantee that the inflationary pressure from high gasoline and diesel prices is going anywhere. And of course, diesel is in the trucks that move the food to your grocery store. And that goes right through the system. So of course, we all know that the Federal Reserve, even though we can argue about it, has a dual mandate, right, two jobs, which is price stability and full employment. And he is pretty confident that he's not worried about the employment piece. It's at a number that looks good, 4% unemployment, give or take. And of course, the fact that spending is happening, even consumer spending. So you've got capital spending, consumer spending, which is leading to a really good GDP number. Atlanta Fed is somewhere north of 5% for this quarter.

5:10That is not his concern. His concern is inflation. And so raising these rates right now kind of puts them in a hawkish position. It does when we look at the spectrum of all the members. So there's a total of seven people on the board of governors. And then there are 12 reserve districts. And so each one has a president. And so when we look at all 19 of them, if we were to look at the language that they use about how they talk about what their focus is, Worsh does tend to skew more towards the hawkish side. And that's not a big surprise given that when he used to be on the board of governors because he's been on the board before, he was pretty hawkish back then. But just because he's hawkish doesn't mean that he is going to not pay attention to growth. Because he said that because of artificial intelligence, because of investment by businesses in things besides just data centers, property, plant, and equipment, we're seeing productivity improve where you don't really have to have this cruel trade-off

6:10between the unemployment rate and inflation. So just because he is focused on inflation doesn't mean he doesn't care about the unemployment rate. It's just that he doesn't think that it's a concern right now. Years ago, probably 10 years ago, you had a great saying, there was actually three birds that are on the feather reserve. There's the hawks, the doves, and the... Turkeys. That's right. Turkeys and chickens. That's right. That's right. It depended on the season. So right now, yeah, it's the hawks, doves, and the chickens. They were two chicken to hike rates. And that was Powell. Powell was a little bit more... Not the column names, because he's not here to defend himself, but he did seem like he was a little bit more wishy-washy trying to be more what is the consensus, whereas Worsh, I think, is more of a leader trying to drive the conversation more towards what I think is a really good data-dependent approach to managing monetary policy, where it's not based on some theoretical model of how the economy works, and then comes to find out, you know, it doesn't work that way.

7:12Because it used to be based on this thing called the Phillips curve, which was that there is this trade-off between a low unemployment rate and a low inflation rate. You can't have both. And Worsh, I think, is very pragmatic pointing out, no, you can have both. And the reason why we talk about this so often, because this is going to bleed right into the political conversation and the mid-term elections. So that's going to get everyone's attention. And secondarily, it's going to have an effect on how markets trade for higher interest rates generally can move the equity markets and the bond markets and certain directions. So it does have every day effect. We wanted to give some every day Americans an opportunity to understand exactly what the Federal Reserve is doing. That's right. If you're poor folly, isn't where you hoped it would be, or you feel like you want to understand more, maybe it's time for a second look. The experience team at Annex has the technology ready to offer guidance at every financial level, clarity and plan built around your goals up to and in retirement.

8:12No selling, no sales pitches. Click to get started button at annexwealth.com for a complimentary review. See what we do. See if there's a better way. This is Money Talk, the Annexwealth Management Show at 620 WTMJ. Custom-teamered investment and retirement planning from a fee-only fiduciary. Know the difference. This is Money Talk, the Annexwealth Management Show on WTMJ. Know the difference with Annexwealth Management. Young professionals are increasingly looking for ways to gain more financial freedom without waiting until traditional retirement ages. It has a name, Coast FI, the FI stands for Financial Independence. Many are focused on identifying the point at which their investments can continue growing on their own, creating greater flexibility and career and lifestyle decisions. While the approach is appealing for its simplicity financial experts warned that long-term planning still requires careful consideration of risk, changing goals and economic uncertainty and director of retirement plan services.

9:20Tom Parks, the Annexwealth Management. Thanks for being on the show again, Tom. Thanks for letting me be a part of this, Joe. I sent you this article and I was glad that you said yes, we can talk about it. Well, we have kids, we also like to talk about retirement, especially you. So what makes this retirement planning approach attractive to younger generations today? Is it just the fact that it's kind of easier and they want everything right now and it's quicker or it's a different mindset? It's a different mindset to answer your question literally. I think what makes it appealing is there is this goal of not having to work and so it's all built around that essentially and that's the part that's kind of like, I don't know, I'm not into that whole scene, I like work. So that's kind of where it's coming from. The thing that I like about this is the headline of the article was young people are obsessed with this simple retirement savings formula. And the way I look at it is the fact that we have a bunch of young people are obsessed with retirement, that's a victory. Yes, good. They're all thinking about retirement and how to pay for it, which is fantastic.

10:22And why do you think that is? That is a good question. I mean, when I started doing this 25 plus years ago, the biggest challenge for me when I was going out and educating people on 401k plans wasn't just to explain how the 401k worked and the investments and stuff like that. It was to convince them that they should take money out of their paycheck and save for retirement. Like that was the biggest hurdle. And that no longer is the case pretty much all these younger people, they do understand. Yes, I need to fund retirement, fire movement, the financially independent, retire early idea. And then they figured out that you really have to work really, really hard to make that work. And even still the money doesn't work out all the great. So this coast FI thing is kind of a branch off of the fire movement, I think. And the idea is I need to build up if I work really hard and save enough early out of my career, I'll get to the point where I have a balance. And then that balance through compound growth will just keep growing and become what I needed to be years and years down the road in retirement. Now the years and years down the road part is maybe some of them are thinking what I'm 50 years old. Some of them might be thinking 55 or whatever.

11:27That's the basic concept. And so the concept is sound because it does take advantage of the idea of compound growth, which is again totally awesome. Of course, you know, I'm always going to find ways to rib these younger people and make fun of them and stuff. But it seems to be easier because we're on their phones. You see the commercials for the apps and the technology. I think that's a big part of it. For sure, that's totally it. And it becomes popular and then you know it grows and goes viral and all that stuff. So the idea is a good one. What I take from it and want to give credibility to just the basic concept is yes, the sooner you start building that nest egg, the sooner compound growth will start manifesting its magic. And so the basic concept, there's a lot of validity in it. So there was somebody in the article and she's 30 and she has $300,000 saved and she has determined that if she just stops saving now and leaves that and lets it grow, it will grow to what she needs it to be come retirement. And they didn't give me the specifics on that. But if you say you've got 300 grand and you're going to let it grow for 30 years and you say it's going to average an 8% rate of return just for example, you'd have like $3 million or something along those lines.

12:37So that's not necessarily wrong or anything like that. As is always the case, it's not quite that simple because you don't necessarily know if you're going to get that rate of return. You don't know if you're going to end up having the stop working sooner than you originally playing. Life happens and you talk about the common mistakes that people might make when estimating how much they need to save. What are those mistakes? It's a real challenge for most people to estimate what they're going to end up needing because inflation, you know, people don't know what they're going to be spending money on in retirement. I think most people assume their retirement spending habits will be different from their current spending habits. So a lot of people don't really estimate what they'll need because they don't know how to do it. So we really focus more on how much should I be putting away so that I've got enough money to last whatever it needs to last for. So the challenges that people face, the mistakes that people make are assuming they'll be able to retire sooner than they will.

13:37I think is probably the biggest one. And when we say coast FI, the financial independence, that's the FI, but the coasting part is good or bad. Well, the idea of the coasting is I've been hammering on the gas pedal. I've been saving, saving, saving. And now I can just take my foot off the gas pedal and coast. And I don't have to save anymore. It's just whether you can actually just completely forget about saving for retirement for the next 20 or 30 years. What I take from this is to say to younger people, if you want to start saving for retirement, hard core early on in your career, go for it. Between the two, I'd much rather figure out how to make the coast pile pan out than have to start from scratch and play catch up. Have some sort of foundation there. He is the director of retirement plan services here at Annex, wealth management. Tom Parks, thanks for being on the show again. Thanks for having me. Know the difference with Annex, wealth management. Click get started at annex wealth.com financial planning at every level. Annex ignite Annex comprehensive wealth. Annex, private client.

14:40This is money talk the annex wealth management show on WTMJ. Hey, more in person events coming up. So make sure you click events. The top of the page at annex wealth.com and reserve your spot or set a reminder. One of the things we've been talking about over the past couple of weeks, maybe even longer is that bonds aren't boring anymore. The deep economic strategies Dr. Brian Jacobson has actually said those words before and where do you get a bond? Because I was thinking about this. A lot of people are wondering about it, talking about it, where do you go to do that? So it's fascinating if it depends on the type of bond that you want to get. If it's an individual bond, I think a lot of people might be familiar with the US Savings Bond program. So you can go to the government. There's a website called treasury direct dot gov. Make sure it's dot gov right because who knows where else that might take you. You got to put in the right address, but that's a place where individuals can actually sign up, create an account and buy treasury securities, a wide variety of them directly from the government.

15:41Now that's not necessarily the most convenient way to do it because you might want to hold it with your other accounts, like a brokerage account that you might have. So if you have an account with one of these online brokerage firms, you can probably go there and look in like the research area or trading area and just search for fixed income. And oftentimes they're going to have their own inventories, what they call it, of like treasury securities, municipal bonds, corporate bonds, all sorts of different, what are called bond screeners so you can search based upon specific criteria. The problem is that you are kind of beholden to whatever they have in their inventory. So what we do for clients to build individual bond portfolios is we look at the different custodians, what they have in inventory. There are also different markets that you can look at that are more for institutional investors and we can see what's out there in the dealer market. But yeah, most people are going to invest through an ETF exchange traded fund or a mutual fund, but there are options like treasury direct.gov or through your brokerage account.

16:42I did invest in a generac generator and I just saw it in my garage and I just saw that they made a big deal with Amazon. They did. This was really perhaps game changing generac for many years has been a leader in the area of like whole house backup generators and also for like commercial buildings. Well, they just inked a deal with Amazon to provide generators and basically on site energy production or backup energy for a lot of their data centers. And this was a big deal because it shows that a lot of other companies like Kohler was an example caterpillar. Those are other companies that have been in the generator business mostly focused on smaller scale businesses or homes, but now they're getting these deals with these big data centers. Probably going to start seeing that happening more and more and we'll keep an eye on it. Hey, we're up to nine total locations. Whitefish Bay Brookfield Lake Country, Mac One downtown Milwaukee inside the Fister Madison.

17:43You are invited for the Wisconsin retirement system webinar understanding your pension potential WTMJ Steve Scaffini. This Tuesday, September 22nd at 3pm, our director of financial planning, Eric Strammell help you walk through the statements and how to read them go through some case studies plus they'll take your questions live. annexwell.com click events glad you're here with us this morning time for news. Let's go to the WTMJ breaking new center planning and investing insight from a fee only for do sharing. You're listening to Money Talk the annex wealth management show on WTMJ. Hey, good morning. Welcome back. This is Money Talk the annex wealth management show and our women and wealth pages up at annexwell.com, including the new women and wealth podcast on demand with special guests and strategies to empower women and gain greater confidence and great local leaders and inspiring stories over the past few months since we kicked off that show. So click the women and wealth page at annexwell.com chief economic strategies. Dr. Brian Jacobson is here and director of retirement plan services Tom Parks.

18:49All right. So we're going to do a little bumper sticker economics here. This was your idea and I liked it. You gave me a couple of sayings to go with and I'm actually going to jump to the second one that you put in there, which is from Milton Friedman and I have a dog named after milling. So that's why I'm picking this one inflation is always and everywhere a monetary phenomenon. That's right. So I wanted this segment to be about just short scenes that people maybe have heard of and that where they can be used, but then also where they can be misused. And I know you love bumper stickers because you have a sticker on your car that is quite cute. It's a little piggy. That's right. And what does that piggy represent? Well, my license plate says capitalist. And so my brother decided when I was unaware of this to put a little pig right next to my license plate. So it's basically says capitalist pig. Oh, yeah, because I'm a big fan of capitalism. And I do love pork chops. So perfect for you. You can see why I would name my dog after Milton Friedman.

19:53That's right. So Milton Friedman was a great economist where he was considered a monetist where he basically tried to explain inflation and a lot of different economic outcomes in terms of changes in the money supply. And this phrase is something he popularized back in 1963 where he was trying to point out, look, a lot of times inflation or deflation, right, because you can get the decline in prices. It really comes from either too much money chasing too few goods or too little money chasing too many goods. And at the time it did a pretty good job of explaining why we get inflation. But there are some challenges with it. Number one, what is money? Right. Money isn't just one thing. When we think of money, like if I say money, what comes to your mind? Oh, cash. What immediately comes to mind? Exactly. But most of the transactions that we do aren't with cash. It's actually settling transactions using like bank accounts, right, and from your checking accounts.

20:53And so there are all these different things called monetary aggregates where they kind of add them up because money isn't just one thing. Money isn't a noun. It's a verb. Money is what it does. Right. It's what's used in transactions. So that's one of the challenges with looking at things like the money supply to figure out if inflation is going to be high or low. Also, if we think about just technological advances, use of credit card, ATM machines, financial innovations like money market accounts versus checking accounts. These are all things that over time have really made it difficult to say what really is the money that is everywhere and always if it's causing inflation, which money is it? Plus it takes a long time for it to work. Even he pointed out he's like it's not like month by month. You look at the money supply it went up. You're going to need more inflation. It was more taking place over the course of like seven to ten years. So I think this is pretty cool that we have a new Fed chair who is a bit of a freedman night. He likes the freedman theory, but he's not like died in the wall. He's very pragmatic when it comes to it. And so I think it's going to be interesting. You might hear this phrase again a few times.

22:03Oil prices and inflation. What will the Fed do? We're here having someone ready to answer your questions when you see headlines can make all the difference and how you feel about your portfolio and plan. Click get started at annex wealth.com and you can do it right now. This is money talk the annex wealth management show at 620 WTMJ. Money talk is straight talk from a local fee only for do sharing. It's time to know the difference. This is money talk the annex wealth management show on WTMJ. Know the difference with annex wealth management. The term retirement red zone that refers to the critical period roughly five years before and five years after retirement when financial decisions can have an outsized impact on some long term outcomes. So during this window market downturns withdrawal strategies and income planning they carry greater weight because there is less time to recover from significant losses and navigating the retirement red zone successfully that requires a balance between protecting accumulated wealth and maintaining enough growth to support a lasting retirement to talk about the retirement red zone.

23:17And it's a term that I know he loves manager of financial planning Tom Burkholz. Thanks for being on the show again. We're both football fans and we can kind of talk about how this might apply to the retirement red zone when you think of the red zone that's sort of when you're almost about to score a touchdown. In this case it's when you're almost about to retire. What makes the retirement red zone such a pivotal period in the retirement planning process? Yeah, it's definitely an important period in your life. The five years before retirement and the five years after retirement. So really a 10 year period total and I view it as the most important financial time in people's lives mostly because there's a variety of irreversible decisions that you have to make that can impact the rest of your life. Whether it's when you take social security, how you elect your pension, whether it's the monthly income option or the lump sum, what to do with life insurance, the list goes on and on and there's vital decisions to make during that period. When you talk about irreversible decisions, can those be rectified? Can you do anything retroactively? Sometimes like with social security, you do have a one year period where you get one do over and it's once per lifetime.

24:27So if you start social security and you change your mind, you can undo it over a year. On the flip side, something like a pension. If you take that lump sum and take that check and put it into your IRA, that's a one time decision. You can't go back and undo that same thing with life insurance. If you surrender a policy that was actually a good fit to exchange and maybe add a long term care feature on there or something like that. If you liquidate that and cash it out, it's irreversible. And everybody's portfolio and situation is different a lot of times. So why is the sequence of returns, especially maybe dangerous during the retirement red zone? Yeah, that sequence of return risk is really the danger of experiencing poor investment returns early in retirement. Usually you retire, you stop getting to paycheck and then you tap into your portfolio and you start taking those recurring distributions, whether it's monthly, quarterly, whatever the case. The sequence of return risk is when the market is pulling back and you're taking money out. So you're actually selling at a lower price and this can accelerate the depletion of savings and portfolios, which it could be very dangerous for retirees.

25:32How should investors think about adjusting their portfolios? Because you think, well, I'm coming up on this age milestone or I've heard about this age being important. How should they think about adjusting their portfolios as they enter the retirement red zone? Yeah, as you approach retirement, it's very natural to revisit your risk tolerance. So when you were younger and still in the accumulation years, maybe you had the pedal down a little bit more and you were taking more risk so you had more upside in the stock market. Well, when you get to retirement, it's a good time to say, okay, do I need to continue taking this much risk in my portfolio? Am I comfortable with that? Am I staying up at night and looking at the news headlines and fearing about my portfolio or can I just live out my retirement? So it's a good time to revisit your portfolio. Understand that it's okay to hit singles and doubles, by the way, in a portfolio. You don't always have to go for the home run, especially in retirement. We're supposed to be talking about football football. Football is right. Well, there's a thing you don't always have to go for the Hail Mary. Yeah, I see it right. And let's talk about the strategies that might be able to help retirees protect their nest egg because that's what we help people do from a market downturn during a critical decade.

26:41Yeah, there's a lot of things to do on the investment side with a portfolio. Really looking at the math and science of your portfolio. So things like standard deviation, sharp ratio, beta, like all of these are kind of nerdy concepts. But when you get to retirement and you're restructuring your portfolio, I think it's a good time to look under the hood and understand what you own and the risk that you're taking. What we do with portfolios is we stress test them. So we look at, okay, what if we have another great recession? What would actually happen to your portfolio? Because sometimes we see with a new retiree, if we had another 2008, their portfolio could be down 35% or 40%. And mathematically, to get back to break even, you got to make 50 or, you know, 100% back to break even. So that can really surprise people. And you talk about stress testing, the portfolios, we have great leading edge technology here that you use every single day. Yeah, we have an amazing tech stack. One thing I think annex does very well as we use top of the line software, whether it's for financial planning or tax planning or investment management.

27:45You help people on a day to day basis. What are the biggest mistakes people make in the retirement red zone? And what can they do maybe now to avoid them? Usually it involves starting too late. So we see people who are about to, you know, the retiring, their requirement of distributions are starting and a lot of it is too late with the tax planning as it relates to tax diversification, how much you have in your IRA versus raw. Some of those things is better to start when you're younger. The other thing is just that you're reversible decisions I was talking about earlier where someone comes into us and they say, hey, I took my lump sum and my pension. And then we run the numbers and it looks much better if they would have taken the monthly income instead. So it's things like that. Maybe that person give you a little bit more clarity about your current situation. He is the manager of financial planning Tom Birkhoff's. Thanks for being on the show. My pleasure. And what is your favorite football snack? I like the K so in the chips. I was going to say nachos as well. Hey, he likes the nachos. Know the difference with annex wealth management. Click the get started button at annex wealth.com.

28:45Financial planning at every level. Annex ignite annex comprehensive wealth annex private client. This is money talk. The annex wealth management show on WT MJ. Hey, thanks for having us on today. This is money talk. The annex wealth management show 20 years of the show. And it's everywhere now on the radio smart speaker or the podcast. And by the way, the podcast is commercial free. You can listen to every episode of money talk wherever you get your podcasts or on Apple music, Spotify, Amazon. A lot of people have been downloading the podcast. So thanks for doing that. And we also give you a video version. Our week in review with the axiom. That is our newsletter comes to your email on Sunday mornings with the things we are watching for the upcoming week. And some great reminders about things you can prepare for before the end of the year. Just search annex axiom. Other podcasts as well like the wealthiest idea strategies and decisions of the wealthy in America. The SWAT podcast strengths weaknesses opportunities and threats of the current market with a new episode first thing Monday morning.

29:49And the women of wealth podcast featuring special guests and ways you can feel more confident and not alone when it comes to your finances. A lot of local and inspiring guests on that podcast as well. Chief economic strategist Dr. Brian Jacobson is here at CEO Dave Spaddle. Thanks Joe. You know, we get the interest rate move earlier this week. And of course, there's so much that goes into how to trade that if you want to trade it. But more importantly, how you invest in that. And there's a difference between trading and investing we invest for the long term. And so really the markets are trying to understand how can this environment where inflation is higher than expected. Interest rates are going up. How can you have this bifurcation where actually the markets are enjoying such a thing. And so, you know, it's part of it is because it's more capital spending lead than consumer spending lead. Oh, so true. Because in the past, a lot of times the growth that really came, it was driven by the consumer. Consumers are still incredibly important and they are still spending. But most of the growth that we have seen this year so far has really been by the capital spending.

30:57So that's spending by businesses investing in property, plant, equipment. And it takes me by surprise that others are really surprised by that. You know, because you're so logical. Well, it just seems like it was the logical consequence of last year. Remember, we had the one big beautiful bill act tons of tax incentives in there for businesses to make those investments and those upgrades. Territory policy designed to try to encourage US firms and non-US firms to invest in the United States. So between taxes, tariff policy, also now the technological revolution with artificial intelligence. And that's not going to slow down, bro. No, it doesn't seem like it. Right. I mean, even though let's just assume that the Democrats win the Senate in the House for argument of sake, they might try to slow down these data center spends. But it's not going to stop. And so there is still going to be capital spending that goes towards this. Yeah, it's a lot of talk about the AI, like the doomsayers out there.

31:59It's going to kill us all. That's right. Which, you know, in fairness, I think that these are deeply held beliefs that the individuals hold. But I don't think there's a lot of evidence to support the beliefs. It's if we look at the history of technological markets. Have you been in a global cop? Come on. Yeah, that's right. Robocop terminator. Terminator. Those are great. Yeah, straight determinator. That's what I came from. From my show. That's right. Well, and also there was this series back started 2014 called Silicon Valley. And it was on HBO at the time. So it's not safe for the family, right? But pretty humorous. The last few episodes were about they developed artificial intelligence. And they ended up destroying it because they were afraid that it was going to destroy the world. So this is almost like life imitating art in a way in terms of a lot of these things that were said. Take it with a grain of salt, right? When they talk about a 10% probability that it's going to wipe out humanity. Those numbers don't have that was the number of 10%. That was the study from Stanford. That's right. But these don't really have a basis in history or reality.

33:00People are just kind of pulling the numbers out. It is up in the political discussion. You mean the world hasn't ended before? That's right. And in terms of if we just think about the regulatory reaction, how long that would take. Originally when it was brought up that, hey, maybe we should pace the development of these models. We saw some I conductor stocks sell off. We saw a lot of other stocks kind of sell off. But now they've rebounded because I think people realize that even if regulators get involved, that's going to be a long runway. Be open to the public for comments. So we don't know what that could look like. And even in the meantime, there is still a demand for existing models. So even if it's about the development of new stuff, there's a huge demand for the existing stuff that's already been created that I think is going to help support that continued capital spend. So if you're listening to this and you're like, well, I had enough of the big seven, right? And I talked to a manager of assets of a mutual fund earlier this week.

34:02And he said, well, if we weren't in the big seven, we were trailing. Well, that's a factual statement, right? But that doesn't mean you can't build a portfolio that you can have the sleep test. Yes. Right. And say, all right, I understand because I have some fixed income. I have some bonds in my portfolio. And in my equity side, there is more than just tech. There are things that will do well in inflationary environment. There's ways that I can succeed. I can risk tolerance test my portfolio. That's right. And if you think about this last week, let's say we had a lot of things popping up. You had the AI, the fears of regulation there. You had the Fed hiking. Concerned at that like a stress test that you took. How did you feel during that uncertainty? Let's take a look at the structure of your portfolio. Get the structure of the portfolio to support your long term plan. And I'll tell you, when we go and I walk through all the conference rooms and say hello to everybody, we look at the portfolios and we say, what is it? Where are we trying to go?

35:03Did you get derailed based on what happened? And can you retire? Can you take care of your family? Are you going to have enough assets? Those are the most important questions. To do that on a tech smart basis is what we do every day, Joe. That's right. Anxwell.com. You can see what we're all about. All the services that we provide in-house in another episode of Money Talk. The Anxwell Thumbandexman Show, the podcast is ready right now on the radio station website or just search Anx Money Talk. And as you're holding your phone and your hand right now, we have some great events coming up. Click anxwell.com. Go to the events section. Some in-person events coming up through the rest of this month in September. And on into October, as we get into the fourth quarter, some great knowledge, some great resources that can help you plan or finally getting a plan started. Everything from single and retirement, couples in retirement, seven tax moves to consider before December. Free webinars coming up to click anxwell.com.

36:03The events section to reserve your spot for you and a guest or set up your reminder for the webinars. For Dave Spano and Dr. Brian Jacobson, I'm Joe Kraus. Have a great week. Join us again next Saturday at 10 a.m. This is Money Talk, the Anxwell Thumbandexman Show on 620 TLD TMJ. Advice and opinions expressed during Money Talk. The Anxwell Thumbandexman Show are solely that of the hosts or guests of Anxwell Thumbandexman. And not WTMJ or Good Karma sports.