Saving with Steve, July 5, 2022
Saving with Steve with Steve Sexton
Guest, Alan Nevin, Economist
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton they welcome to the same with Steve shall we talk about the ins-and-outs of money pretty miss everything of you having a healthier happy relationship with money my name is Steve Jackson I want to thank you for joining us today we have an extra special shown to be talking about the economy date but a couple things right up front here<br>the first thing that we want to talk about is this where the Better Business Bureau the government scams are on the rise against you want to watch out for when they see what's going to happen if somebody's going to call you and say I'm from the IRS EIN from the Social Security I'm from someone so and if you don't pay this we're going to put you in jail we're going to stop your Social Security going to do something else I want to be very clear none of those agencies reach out and call you okay that's the big factor the other thing is if they want you to pay them and gift cards or cryptocurrency you know it's a scam there's been hundreds of millions of dollars in people in 2021 in here in 2020 to watch out for the ones you love because you never know what's going to happen so keep educating everybody now or listener and viewership kids continue to rise we're very thankful for our Affiliates UK Health radio CBS Radio AM FM 247 and all the other feelings that we work with we keep growing our stuff now if you missed last week we had Steve Chevrolet he's really green<br>Shane Company adjusters International to help people catch up on what's going on with the wildfires as well as other disasters Steve went through a homeowners can avoid the biggest pitfalls and find Claim to the property losses due to these disasters what new insurance regulation for homeowners what homeowners can do now just to best prepare themselves in dealing with insurance I'm sure the future if you want to check out this episode is episode 80 that's right we've been around 480 episode go to standing with Steve. Us and check out the episode 18 out this week we're going to be talking about our beer tennis against one of these things with immediate annuity what's the odds what's the dance will walk into that just a moment but today we've had a wild ride when it comes to her, we got a war we got a pandemic we got supply chain issues that's what we think and we're seeing Rising interest rates we have to drag her of economically market research to start with Alan Devon here to walk us through what's been going on what we can expect<br>the future would be real estate our food the whole shot now this very first segment like I said is about the pros and cons about immediate annuity for most people you don't have a pension from your company you want to retire are you looking for steady stream of income you might purchase an immediate annuity this is an insurance plans usually crate with a lump-sum payment and is designed to to pay you and guaranteed set amount of money per. Of time for retirees you feel that use additional funds to cover their ongoing expenses are concerned about a leading the standings and then the meeting. He could be a good option. However the amount you receive will be dependent on their various factors that are potential downsides to consider before signing any contract for an immediate annuity you know what you want to read the information that goes on there cuz it makes a big difference what is an immediate annuity you ask set up an inch or Spacey set up an insurance plan is funded with an initial mad that makes pants you start by putting in money I would come from your savings<br>401k or IRA after the deposit the insurance company makes regular payments to you this difference for other types of movie called deferred annuity where are you put money invested in the insurance company noted mean it pay out of benefits paid you by the by a rather the money grows in a certain way for a future. For you okay when you purchase it immediately or anyting sure will look at factors such as your age how long the payment the last determine the amount of payments from an income respect you can count calculate your fixed expenses use the amount to determine how much you need an income stream some including Rising income streams to keep up keep Pace with inflation this could give you the comfort knowing that you're living your cost of living will be covered in the future when does an immediate annuity begin making payments to start receiving payments based at the Thailand details in your meeting you again it's a contract you can start taking money within a month of your job sometimes it's 12 months you can ask to have payments made monthly<br>or tear and we also selected. A parrot which consists of a certain number of years or for the rest of your life many people offer a lifetime annuity payment meaning their payments will continue for as long as they live at a customer is in numerous ways to fit in German speak so sometimes people are looking for an extra income for several years until I decide to take Social Security in you might buy in a meeting. Separate years or something like that now there's a few benefits of going with in a meeting Beauty and there's also some drawbacks you need to know both of them before you move forward never one let's talk then if it's when taking immediate annuity you can ask for a guaranteed income stream for about you and the other person such as your spouse regardless of how long you both live and I'm meeting you at he that covers two people the income they must be used to be lower if a contract is coming to live the functions just like a pension you be able to count on the money until you pay your bills no matter what happens in the economy in the stock market now this can provide you tremendous<br>I was safety from an income perspective as well as a peace of mind that you live the lifestyle you like to and retirement if you purchase immunity with pre-tax savings you'll be taxed only on the income that you withdraw and we finally meeting you at the account Rose and accused more than take and then you take out during the year you won't be taxed on the additional stay and tell you take out the money this could be quite a tractor for tax savings perspective the words are really saying is this your only get attacked on the money and take out if you're not taking that you're not getting taxed not a bad situation couple of drawbacks do you need to know this once you talk deposit the money in the annuity plan you generally don't have easy access to this month if you want to cancel the contract and take the money and put it in there are some barriers surrounding a policy early come with penalties sometimes it's a r e v v so you can't withdraw the money other potential disadvantages why and what you will pass on in form of and hearing from the annuity and many of these<br>contractor will you get an income stream for Life you'll wind up leaving any death benefits you're there however contract if you died prematurely a lump-sum benefit would go to your hair so freaking ample they have 10 years so they'll pass you for ten years if you pass away early like in the fifth-year your beneficiaries receive the next five payments they won't receive a loan son so just before deciding what is best for you and your house or do you want evaluate your level savings would be your current expenses you might find that immediately cease you special you want to guarantee payment that won't go away during every time I frame however if you it's leaving money she'll truism poured you might consider other options so think of this mini immediate annuities don't have any inflation adjustment so that means you can lose purchasing power so it's important to read the contract next YouTube Mary important to make sure you're going to look at the income that you're going to receive does it fit number to make sure there's something then it goes off your beneficiaries if that's<br>if it's not important just care about the payment pay that's fine but if it is important to you might be looking another Anthony that's it for today we're going to have to take her back with Alan Levin talking about the economy more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve Sexton on a saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hey welcome back to the talk about the ins-and-outs of money if you like to follow us on Facebook or Instagram or YouTube all their you just got to look for saving with Steve Sexton saving with Steve Sexton or if you'd like to check out one of the episode that saving with Steve. Us just go ahead and take a look at it now we've had a pretty wild ride when it comes to the county were last couple years we're seeing inflation supply chain issues real estate skyrocketing interest rates going up gas prices going up and you know what people are quite concerned so this is the reason why we have Alan Evan he's a director of economic and market research to State Fair group an easier to talk about the welcome to the show I'm really glad to hear I mean you've been doing this for years now<br> there's been a lot of things going on right now we're seeing here in the first 6 months and you can probably talk to this better than I can will you seen interest rates increase between mortgage rates go up we're seeing gas continuing to move a lot of inflationary issues far more than what people are expecting to see the Federal Reserve recently say hey we're not going to increase interest rate this mess we're going to hold off because we don't want to really see in our economy into recession it's a very precarious situation and it's just hoping to get your take on it and I like to talk about start with you having to talk about the general overall economy and then let's talk a little bit about real estate and go on from there is that okay perfect so what's your employment rate is actually lower than free covid and the dairy still this enormous appetite for hiring and employers just<br> can't find enough people to take the jobs so in the end the economy is an amazingly strong Shake play one of the issues that AC is we're seeing this inflation keep going up I mean you know we've never had the $7 gas yeah I know is that how that is an artificial situation okay however I don't think it's going to go down anytime soon because of the Ukrainian I sent you a shame because we're going to be supplanted the fuel to Europe that was once coming from Russia is now going to come from us so we're pretty well stocked. That's what you're saying it up reserves or oil production is going to go to Europe because that 10% of the world's oil was coming from Russia and it's not<br> play come in there for many more so anyhow just assumed that the price per barrel will be in the $100 range you know we'd like to see it down to 30 or 40 and going to happen anytime soon so until that war is essentially over we're not likely to see are gas prices resend it at all and the reality is that doesn't seem to have had a negative effect on the on retail sales or on the rest of the economy what about wages are wages keeping up or the answer is we have a California perspective on thing we're not like the rest of the United States over the reality is we're raising our wages here in California but nowhere near as much as it should be the<br> if you're earning $15 an hour in Arkansas your middle class and here you're actually you're not able to live here almost what we're finding our I'm at the lower end of the scale we're seeing even the fast food place has a number of them are pushing $20 an hour and offering bonuses and just trying to keep up with it they just can't get enough folks working there I totally understand my my son who is graduating from his master is here next week he has his internship is actually paying him $18 an hour and there is no McDonald's all the different fast food chains are paying 19 and 20 and giving sign-on bonuses<br> the only problem is that's really great for high school kids are college kids but obviously you can't raise a family in San Diego on $20 an hour. All it was interesting because he's off should be enough for jobs and things like that and he was offered jobs in Idaho in a few other stay in Texas as well as here in California and the offer in California was almost 25% more from a salary standpoint than any of the other locations and because he has a master's obvious he's on top of that he's getting about 35% more than the guys who have bachelor's so it's an even then at that salary range he still can't afford a house has no you just can't it it really takes two jobs per household here and where's that is what has happened is that will you actually wind up with as many as in<br> average of 1 1/2 jobs per household and that's what it takes to get into unfortunately into even a moderate priced Department here unless you're in a subsidized project of course and the utilities that's legitimately going to take up about $30,000 of his income after taxes so it's pretty expensive to live in San Diego so it's just very interesting how things change so let's switch gears and talk a little bit about the real estate market in California so on I've talked to a number of Realtors and they say you know what even with interest rates going up in there at 5 that's still pretty good interest rate and as such they are seeing 89 offers still but they don't expect to see that after the summer do you concur with that or you you know what do you sing in the real estate market are<br> Motors 405 speech and I mean you see the last few years was abnormality when you're saying interest rates is 22 and a half with them that's not sustainable what is the interest rate what is the interest rate now is pretty much the norm for the us and it seems to not be having a negative effect on sales you may know I'm The Economist for the San Diego Association of realtor yes I do and I track the sales pretty close so you had pulled out a monthly newsletter for them fit into that lake is open to the public if you go on sdar.com and just look under the economic section you will find my monthly newsletter and what we're seeing how ever do is the number of closings are going down just because there's not enough merchandise on the shelf and it's<br> very difficult situation and we're not still seeing the multitude of offers on individual properties but we're still seeing enough so that the sales keep going on and the prices keep going up and then of course is really also not sustainable yesterday the case-shiller report came out and he said been home prices year were up 29% at swirly not true I don't know how they get their numbers but this is just not accurate we're probably I'm waiting for this month's to come out in about two weeks and we're probably at the 15 to 18% of your increase at which is what has what it has been the last couple of years and I see that<br> going to back rate of increase is going to slowly go down cuz it's just not sustainable everybody was shut laurelle in that and you don't want to miss this is all about the economy stick with this were to be right back with more shaving machine more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so she ate it with you having a healthier happy relationship with money so if you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton play welcome back to the saving with the ins-and-outs of money pretty much everything under the sun really so you having a happier healthy relationship with money and want a special shout-out to our affiliate to all about helping you solve problems up with your spirit and live a life of personal and Financial Freedom and they are UK Health radio BBS real name fm247 and all our other Affiliates if you'd like to check out the show you can go to YouTube Spotify Google Play and all the rest and you can just download saving with Steve now we have Alan and then this is really interesting with all the economy of the stuff that's going on right now Allen you know what when we take a look at the second half of the year we're going to be moving up on June through December what should people expect to hear from a real estate standpoint<br> sec in a way that you talked about the gross not being sustainable is there a Tipping Point where he we start saying hey things are going to sell in three or four or five or six more days it's going to start snowing in a month you know what's the Tipping Point for 4 that I'm just saying the situation here continue like the way it is now without the 20% games and prices I see that increase rate of you spawn down but the reality is that the demand for housing in San Diego is amazingly strong and it is because the jobs that were getting here or large part are very well tamed and in many cases you'll have dual-income households and we're also seeing abnormally large down payment so instead of what we'd predicted they had had 10% we see a rather large percentage of the buyers<br> are putting down 30 40% in cash there's a normal amount of cash out whether it's coming from parents or funding to the child their number of the major companies that are giving advances to allow their employees to buy homes and then in addition to that the hearing a lot of people in San Diego and we're talking thousands school can cash out their stock bonuses from Qualcomm in a Lumina and all the other companies that have had bonanza's in terms of a stock and that the employees are benefiting that and that's worth all up and down the West Coast all the way up through Seattle where you see the rank-and-file Amazon employees a holding on to stock that very often worth more than a million.<br> some of them are holding on for a long time and now they're selling buying a house and you know what no debts no nothing and they're actually was it when my son's recruiting one of the group Reuters actually just said yeah I work for 15 years for Amazon just got out I don't have to work anymore so I went to work for a company that it really late we really want to work for like everything about him and do you know why there has been some wonderful Boone's have come from companies like Amazon Google and luminous and others from their stock option down the state I will running close to 30% home sales or cash wow and that it's a little over here in San Diego in the rest of the state and up through the state of Washington that is what you're saying so the world is Awash in cash over the last few years of not only from their company's buttstock<br> games have gone up tremendously and the result of that is that the allow the market to continue buy at its previous case the only one in the market and let me talk about San Diego is that we don't have any community that appeal to the active senior cell when you have a substantial part of your housing in majority owned by people who are 55 plus who would like to move down to a smaller house in an active adult community we don't have many and that is a swimming tracker because we know is that 85% of seniors die in their own home and they would like to move into an active senior community which we have in most of California but not in San Diego it's interesting that you say that because in the last two years<br> I probably had about 20 maybe 25 clients who've actually sold their homes in San Diego or in LA or Orange County and it moved to States like Tennessee Texas North Carolina Idaho Montana and others because they could liquidate their house don't have any more mortgage they can go buy something for cash and I still have a ton of money left over to go invest and create a better income you have a more fulfilled retirement to go travel just think they want so yeah it happens you know you're living in La you'll be moved out to the desert and still buy reasonably priced housing but here we're short of stock and if you want to maintain a residency that somewhere near your kids and grandchildren moving to Tennessee may not be the right answer but most people that I know that are moving moving next to family or friends in fact I know there's a in Austin there's a whole San Diego Sheriff's Department Enclave<br> let's talk a little bit. We have about 34 minutes left I'd like to talk about now that we've got through the real estate so when we're start looking at everyday Goods obviously the price of gas at fix all that stuff you know when it comes to food when it comes to closing you know what it is that just going to go right along with gas prices as we're going to continue to see inflation with that is that going to subside what do you see their interests that oil sort of drives everything else because almost everything it has oil or a derivative of oil in it and then you have the situation where you have ships container ships backed up to 4 weeks out of LA and Long Beach they just can't get the goods out and it just drives up the price of the goods and I don't see that changing anytime this year in fact pad<br> they are saying they were asking the question hey when can we see reasonable inflation back in the 33 and a half for range do you have an estimate for something like that the answer is when oil starts going down and that's not going to happen until after you crank okay so either you going to stop so once that occurs then we can start getting back to normal and see something within a 69 month. After that or yes you mentioned a real estate report that you give to the San Diego Real Estate Association how can people go about getting there is free you just go on sdar.com and then you'll see a pop-up across the top and you'll go over to where it says he can all my reports or newsletters and my newsletter is there it's there for the asking that's wonderful to be downloaded<br> preciate that I just want to make sure everybody else knows cuz it's a good there's just Boone's of information there that can make a difference and more or less calm you down a little bit because you know a lot of people think he or she heard of CEO for major wirehouse talk about hey we're looking at a hurricane coming for our economy and that's not quite the case cuz we have strong jobs we're just dealing with some extenuating circumstances with the war supply chain and things like that so correct exactly the economy and when you look at retail sales when you look at our gross national product we're doing rather well and unfortunately there you know there are eleven billion job openings that can be filled in the United States so that the employers are really suffering but the reality is that has resulted in a 3% unemployment rate and I don't see that changing much are 3%<br> I want to thank you for joining us thank you for sharing the economy with us and your knowledge we're just lucky to have somebody with your background experience just to share that so everybody gets a better idea what's really going on and what they can look for you in the future you're so thanks again for doing this here on saving with Steve and you don't stay safe and healthy and love to have you back again next time thank you hey everybody I just want to let you know Alan talked about those three eleven million job openings next week we're going to be talking to Helen horse again. She's going to talk about making career change in this might be an opportune time especially since there's 11 million and you might be able to find your jeans dream job might have to do a couple things so it look forward to seeing you next week and that you guys have all the great week stay stay stay healthy right here on staying with Steve bye bye thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve.<br> us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>