The Jon Sanchez Show
7/29- How to create a stock market driven retirement income plan
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But what was very interesting, if we go back to early this morning, I was looking at my notes, you know, right before the stock market opened today, we're up 175 points on the Dow Jones Industrial Average Futures. And it wasn't long before, you know, that big rally right at the open there began to fade, and we just never really recovered from that. It wasn't long after that, then we went negative and actually finished the day in negative territory. So that's what I mean by saying, you know, we didn't have a lot of conviction, right? So finish down a little bit on the Dow, which I'll go over the numbers momentarily. But in the meantime, what do we have ahead of us? Why did this market react the way that it did? So we'll get to that in just a moment, but let me tell you what the topic we have lined up for you this evening is. Now we know, of course, and we talk about it a lot in this program, we eat, live, and breathe retirement and complaining for our clients. So we wanted to share with you something that we feel is very important. Matter of fact, to show you how relevant this is, I literally just got done with a call with a client about 20 minutes ago, and this was exactly the call, okay? Retirement and complaining. And all the things we're going to teach you tonight is exactly what we just went over with this client. And so what are we talking about here? Well, as we all know, when we start talking about retirement, the first thought that comes to everybody's mind is, oh, I need X amount of dollars, right? Wall Street tries to convince you you need millions of dollars and so on and so forth. And we've said over and over again, no, the size does not matter. What matters is what your retirement cash flow is going to be, right? And so what we wanted to do tonight is really kind of go back to the basics from a standpoint of how do we do it, right? Let's share with you what we actually do for a living, and again, if you're ready for retirement and planning, hopefully you will come to us when that time comes. I will tell you right from the beginning, and I'm not saying this to be cocky or arrogant or anything else, whether you use us or whether you use someone else, retirement and complaining is very difficult to do on your own. Most people just can't grasp it because as the saying goes, it's too close to home. You can't give a real honest thorough evaluation of what your retirement and planning needs truly are. So if you are getting near that stage or you're in that stage of your life, please hire us, hire somebody that's qualified to help you go through this. We've done thousands of these and really give you a good understanding because folks, we see it day in and day out. People that have done the proper retirement income slash asset allocation planning, they live a great retirement in most cases. But it's the ones that just kind of go at it, you know, shooting from the hip as the saying goes and just thinking, oh, you know, I think I can make this amount of money or I think my expenses are going to be this amount. Those are the ones that usually find themselves going back to work or worst yet. They find themselves miserable and they're on such a tight budget. They just can't live. They don't get to live the retirement life that they want and most importantly that they deserve. So that's why we try to do these retirement income topics periodically on the show. But tonight's going to be a little bit different because we're going to start with exactly the fundamental steps that we take a client through before we even get to what's the asset allocation side of things tonight. And so once we finally get through that step and then we start talking about, all right, so now we know what we need. How do we invest this money? Where does this money need to go? Then we're going to get into the specifics of the investments. So we're going to talk about a lot of different things. Let's see. How many did we put together here about eight or so and was it nine? Are you with me? I've been. I've just been sitting here. You're on a roll. So I'm just letting you. Oh, okay. Thank you. Miss you though. Yeah. So yeah, eight or nine of these that we've put together and what we've done is we really are going to talk about what these investments are. What's the pros of using them when it comes to retirement and complaining? What are the cons and then kind of give you some examples as generic as we can do to compliance reasons. We can't get into specifics and say, oh, use this specific ETF or fund or whatever it is. But you get the general gist of what we're talking about. And then again, if we've done our job correctly, which I'm confident we will do, you will walk away from tonight's show going, you know what? I understand exactly what retirement and complaining is about. And hopefully again, our goal is at least one of you, just one of you going to retirement better prepared than you were just a few moments ago. Agree my friend? Yeah. No, I really do. I think the main focus of trying to marry fixed and variable expenses to their counterparts on the income side is healthy as well. Right. People look at their size of their portfolio and are confused by, well, how am I going to live off this? Do I just burn it to zero over 15 years and kind of to your point? It's not a matter of, you know, how much do I have? And again, that's sort of, you know, peak term. It is a matter of how much you have it, but it's more so how much can it generate for me given my level of risk and there's your acronym of risk, but there's also the RISK kind of, you know, how much can I lose on this investment and still keep up with my goals. And I think that's the part that, you know, people look, oh, I can take this much of the stock market going up and down and sleep at night. Well, that's important, but it's also how much can you lose in your investment and still have a specific cash flow that doesn't eat into your assets over time. So yeah, it's a, it's a great topic and like I said, we'll take in a bunch of different directions. Yeah. Absolutely. Good deal. Well, we're going to get the stock market side over with because we've got a lot to talk to you about on the retirement income side. So, you know, Jay, I don't know if you heard at the beginning of the show, but you know, you and I hit it right on the head on Friday when we give our market recap. If you missed it, please pick up our podcast. We hit it right on the head. We said, look, this is going to be a very busy week. We have a number of things going on between corporate earnings, between a Fed interest rate decision on Wednesday, between non-farm payroll numbers on Friday, on and on and on. And boy, today's action really was indicative of that. It's like, no one wanted to get in front of the speaking train today. And it's kind of, you know, as I said in the beginning of the show, we had really good strength that, you know, well, on the Dow and the NASDAQ side of things, even the S&P early this morning, but boy, it just cannot hold and you really could sense there was a lot of nervousness. So take us away on our daily recap, my friend. Yeah. And I think, again, that risk side, right? I talk about this all the time is when you look at the volatility of an asset, if it moves a lot more, like these mega caps have around earnings over the last couple quarters, investors are going to bet less of their chips around these earning events. And that is part of what we saw in this grand rotation we've had over the last couple, you know, couple weeks of out of large cap into everything else. But I think it's partially because of earnings and that people are worried that, you know, if this isn't good enough and define good enough, and that's always the toughest part, these things could get wrecked. Yes. We've seen that last week. Right. And I think that's part of what folks are worried about, too. And so, you know, we had Microsoft, Meta, Amazon, Apple, all the norms sort of hover around the flat line at Tesla, I think in an upgrade of Morgan Stanley today, that was helping that name, you know, but you saw the small caps underperform finally by a percent in a quarter. I think they were down relative to the S&P 500. So, you know, people probably doing a little profit taking their more comment today around the FOMC and are we going to get 50 basis points of this stupid market just like we go from, you know, honestly, it's, it's ridiculous. It's like listening to a drunk buddy at a bar, you know, some story about a fish, you're like, oh, it's this big, but I didn't catch anything, you know, but it was, that's a lot of what you tend to see around these times, too. It's a quiet summer period. This is seasonally a fairly volatile period in the markets, too, given the buybacks are gone and we talked about some of that mechanical support through options isn't there right now. So, I still think earnings are probably going to be good enough. People obviously laid a bit of an egg, not necessarily in their numbers, but fear around capex spending and people think that maybe Google is going to be the place that your classic AI chat, GPT, perplexity, you name the new AI backed search engine is going to eat into. And I don't know that some of the others are going to be as much of a focal point, you know, as a, oh, my gosh, AI is going to take your business. What's Microsoft going to say is co-pilot been adapting. So, this weekend I had to go and buy a laptop for my son for high school, and he hadn't updated it in two years or whatever, and they wanted a two-in-one, so on and so forth. Well, when I go into Best Buy of which we didn't end up buying something there. But they co-pilot and they had their whole co-pilot plus AI, Microsoft stuff all over the place. And I'm a tech dork. I didn't care. Like I wasn't like, oh, I got to go get that. There was no reason for it. And so, maybe down the road there will be, but as of now, you're too smart for that, though. Remember when I brought up about Best Buy and Dell and all that, remember a couple months ago, and you said the same thing, it's like, there's no big deal. But that's you, right? The average person that I talked to, they're like, oh, yeah, I got to get the latest computer. It's got AI on there, you know, and you and I both know it really means nothing. Yeah, I just didn't know. I didn't know whether, you know, I probably, you know, I understand it at the same time. It didn't have this like, oh, my gosh, I need that shiny thing, right? You know, on the flip side, I like toys, I like, you know, but yes, it didn't seem like the crowd of people were like hovering around the co-pilot AI desk, right? Does that make sense? It's still sort of enough. I'm buying computers anymore to be honest with you. Maybe they have to, right? Exactly. It was the nerds like me that are like, excuse me, can you show me where the open box section? Right. Literally. That's what I was like, picking through the scraps of like, what do people bring back so I can get a deal? But now I just, it time will tell, I think, with a lot of those is how much spend are these guys. I saw a guy on Bloomberg TV and then he actually was on CNBC later, had a pretty cool comment before the break. And he was saying, you know, when you talk about a Google that's not, you know, they're spending all this money, he viewed that favorably, looking, saying that, look, those who don't have the cap X to go spend to go grow in this new regime are going to be the ones who lose. And so maybe the flip side is, wow, they are actually making the investment that they can be fruitful in the, you know, in years to come versus we're going to wait and see what happens but probably be behind the eight ball once, uh, if when that happens, probably see a lot of them go out of business, you know, definitely beautiful, great. I like that story. All right, we'll come back. We'll lay out what this calendar is for the week as far as the earnings numbers as Jason alluded to, Microsoft, meta, so on, so forth, we'll kind of lay out what days those are going to come. I got some comments on those and then just talk briefly about again, Wednesday, what we're going to have and then Friday, the non-farm payroll numbers don't get into our topic retirement income planning. In the meantime, let us turn it over to the wonderful Kristen Snow. She is in the right now at Traffic Center. Hey, Kristen. Welcome back to the John Sanchez Show on Newstalk 780KOH with Jason Gump. All right. Finished up. 49 point loss on the Dow at 40,000 of 539, the NASDAQ, a small gain of 12, closing at 17, 370, S&P at four points to close the day up 5,463. Well, prices have been on the week side today, a 1.7% loss to 75, 79 a barrel, $3.21 give up on gold, 2,377, 80 an ounce and just the two basis point decline on the 10 year treasury at a close of 4.18%. Hey, my friends, over at S&W Tractor, don't forget they've got all kinds of great specials going on right now. And I love to say 0% for 84 months on select models. That's right. You can't beat that. And the inventory levels, fantastic. Go see Stan on the crew at S&W for a Coyote Tractor, big one, small ones, everything in between 4880 East Nylon and Carson City online, S&W Tractor dot com and of course the phone number 882-1225. Now, as we were saying before we went to break, it was a day where things just kind of turned lackluster. No one really wanted to get in front of the speeding train, i.e. what we have in store this week. So as Jason mentioned earlier, we got some specifics for you. We've got Microsoft releasing earnings numbers Tuesday after the close. Met is going to be Wednesday after the close. Amazon and Apple report results Thursday after the close. Tesla, as you alluded to Jason, strong day to day, $12.30 rise, $2.3210 and McDonald's. I'm still scratching my head. I don't know about you. I'm McDonald's. Bad earnings numbers, bad outlook, et cetera. But investors, according to the headlines, are excited because of the turnaround story with McDonald's. I mean, that's what we do. We look forward. But bad earnings numbers, and they rallied the stock $9.42, almost 4% to $2.61.42. That one was really bizarre. Yeah, I think it's, again, if I was going to be a chartist, it's pretty decent support level overall. So maybe a bit of a trade bounce more than anything else. It's one of those names that people flock back to if they're thinking a consumer staple. The interesting part is a lot of these, not a staple. It's discretionary, but it's the most staple issue of discretionary, I would say. But a lot of these aren't anymore because they're so freaking expensive. I mean, you've talked about it a bunch of times of go through X drive through and drive out and it's $60 later and you're like, "What just happened to me? Did I get a massage while I was in it?" It's just insane how much some of these prices have gone on. Again, people want minimum wage higher. They want this higher and unfortunately that filters through to price, especially if companies like McDonald's are going to be profitable. So we talk all these times, sort of as an extension of bring more jobs back to America. Like, okay, don't complain when stuff is 20% to 30% to 40% higher because these companies want to make earnings and in order to do it, they either raise price or cut costs and if they can't cut costs, guess what? We got it. So now they have a $5 value meal again, I guess. And that's been part of it, but it's been forced on the franchisees. And so the franchisees profit levels are actually much lower because McDonald's like, "You have to do this because we're all in this together." Yeah, right. Exactly. Because they make billions and billions of dollars. Yeah. Right. It'd be tough to be a franchisee right now. Oh my gosh. All right. You are now up to date on what happened in today's market activity and again, we got those earnings numbers. They indicated we have a Fed interest rate decision on Wednesday. No one's expecting the Fed to do anything. Maybe some hints as to what the next meeting's going to look like in September where all the anticipation is the first quarter percent cut and then, of course, nonform payroll members on Friday. So this, you know, enjoy the quiet day today. It's not going to be this way every day. It's going to start to see a lot. But I want to mention real quickly before we get to our topic tonight, I'll be honest with you, Jay. I am very confused in regards to how these corporate technology earnings numbers are going to look like. You were mentioning earlier, you know, Google kind of gave us a big guy, would you say, a big egg of a surprise the other day? Yeah. I really don't know, usually I'm very confident and it's fairly accurate on what these companies are going to do as far as, hey, they're going to make money compared to the last quarter or not. I'm really up in the air on this one. I think this is going to be a tough one to look at. I think maybe we're going to get some that do better and some that do worse, which, you know, is not what we need. We need, you know, these major names, the Microsofts, the Metas, et cetera. We need everybody to do well to get this market moving again. What do you think? I agree with you. I think, you know, the COVID, I would say, stoking of some of these companies, I think, has by and large faded. And now it's how strong is the consumer? How strong is the corporate, right? Do you think corporate right now is deciding they want to go out and unless they need to spend a ton of money to go crank up whatever new, you know, idea that they have? I think that's why Salesforce came under a little pressure. Some of the other providers I'm trying to think of that guy with the glasses that's always the last service now, you know, they, right, he was from SAP, they had come off a lot as people were thinking that they would never notice that. Oh, that's crazy. Yeah. He was like mirrors on the inside. But you know, they ended up having a good enough quarter to keep themselves going. And they're sort of my, one of my barometers around his corporate stint spending still there and service now seem to act okay. So I think the economy is still doing well. Companies are still spending on the normal stuff. It'll just be more of into the future as to how much they really want to spend on being early adopters of this new technology. How much do they really think they're going to get out of it? Long term yes, but are you going to be the first person to go all in and spend a ton of money on AI and the heck out of your system unless you don't, unless you need to. Right. Exactly. You know what I'm seeing on a personal basis. You mentioned your best buy story. What I'm seeing and I'm down in Southern California right now as Jason well knows. I'm seeing a lot of supply chain issues beginning to arise again and some things that I've been trying to, I'm talking little parts and things. I'm starting to see things really get delayed, but I'll tell you, you know, I took a trip as Jason knows, I took a trip from Southern California to Southern California last week on my boat and I went past the port of Long Beach and let me tell you, there's a bunch of ships sitting offshore again right down the road from me here in Port Wainini. There's a bunch of ships and these are auto delivery vehicles. These are cargo ships that deliver vehicles. There's, I was out yesterday, there was like four of them. I mean, I'm talking these massive, massive ocean liners. I'm getting a weird sense that we're, you know, again, as you and I've discussed, you know, we're starting to see the consumer slowing down a little bit and I'm wondering if this is just the beginning of, you know, again, just a little bit of that slow down, not a little bit, but maybe a pretty good slow down and things because I'm seeing companies not not supplying, you know, the products on the shelves like they used to. And then again, seeing these ships sitting offshore, I don't know, it's just kind of a weird observation, maybe, you know, it's just an anomaly or something, but I've noticed it for the last few weeks that there just seems to be a little bit of a slow down, like some contractors and things, talking to them, they're like, yeah, I'm having a hell of a time getting this part or that part and they're, you know, it kind of seems like everybody's in the same boat there. So that was, you know, kind of... We wanted to keep it on for sure. Yeah. Yeah. And you look at Stalinist, you know, there, I mean, not good earnings numbers there and outlook, et cetera. So, you know, maker of Jeep and Ram and stuff. So, yeah, we will see, we will see, I don't know, just kind of interesting times at this point. All right. We come back. Let's talk retirement and complaining. One of our favorite things Jason and I love to talk about, it says the market. But first, let's turn it over to Jack Saban. He's got news trafficking with Ajax 49 on the Dow, rose 12 on the NASDAQ and our five-point gain, excuse me, four-point gain on the S&P 500. All right. We're going to get down to our topic tonight. We're going to run through this. A lot of things to talk to you about retirement and complaining. Once again, one of the most critical aspects of saving or not, excuse me, one of the most critical aspects of having a successful retirement is making sure that you have enough money to live the lifestyle that you want. But so many people, so many of our competitors look at it completely wrong in our opinion, right? They'll take a lump sum of money, say, oh, let's just take a 3%, 4%, 5%, whatever would draw rate and that's it. We do it differently and we want to share that with you of actually how we do it. So how we're going to do this is we're going to lay out four steps that Jason and I use with our clients, tell you how we do it for again, for them. Then we're going to get into some investment ideas or recommendations for you, right? We can't get into specifics, but it's just generality. So yeah, I'm going to take the first point, I'll throw the second one over to you. So the first thing you need to do when it comes to retirement and complaining is determine your income needs. Now you do this by accurately determining your potential income sources, less your expenses, right? Pretty basic math. What's coming in? I'm going out. But as Jason mentioned earlier in the show, we look at it differently. Instead of saying, all of my expenses are the same, my fixed income, my variable expenses, they're all the same. They're not. They're completely different. As we've said many times, we break it down into four quadrants and this is called what we call risk or the program we created called retirement income savings calculator, visualize across upper left quadrant is your fixed income, upper, assume upper left quadrant is your fixed income. Upper right quadrant is your fixed expenses, net those two together, bottom left quadrant, your variable income, bottom right quadrant, your variable expenses, net those together. Now, why do we do it that way? Because we want to make sure that we have as much fixed income as possible coming in. Fixed income allows you to withstand the economic ups and downs, right? So again, as we've offered to you, it's on our website at sancheaswealthmanagement.com, this calculator is on there. Go in there, play around with it and see where you sit if you are near retirement. We basically require every client that's going to be retiring to fill this out because what Jason and I need to do is we need to reverse engineer it. So what do we mean by reverse engineering, Jay? Well, I mean, you know, ultimately you're trying to solve backwards for what your income needs to be. And like we talked about, if you can marry your certainty as far as the certain expenses with a certain income, then your variable side, you have a better idea because you go out and spend on the variable side in excess of what your fixed income is going to be. You better hope that your variable income comes in or you add credit card debt. And that's the one thing that we want to keep a close eye on because ultimately what we do and folks are about to retire and really all the way through is I'm doing interest rate arbitrage, right? If your debts can be either corrected for or changed into something better or, you know, should I pay off my house because I have this utopian idea of, you know, not having a payment yet. It's a 3% and you can earn better rates on something else that have much lower, you know, or very, very, very low risk. Those are all the things we want to look at. So it's not just as simple of here's my expenses. Here's my income. I'm good. It's how much variability do you have in all of those items and then sort of working on a plan from there. There you go. Real life examples. I mentioned beginning of the show. I just got off a phone call right before the show. Exactly what Jason's talking about. Client had a rental property or has a rental property, but they have that they own free and clear. Then they have two mortgages on their primary residence. They don't have a tenant right now. So there's no income coming in. They're kind of tired to be in landlords because they're tired of their place being thrashed. And so they wanted to know, does it make sense for them to sell the rental and pay off the two mortgages because retirement's only about five to six years away. So I ran the numbers, calculated the real estate commissions, the capital gains taxes, everything there. And said, look it. Here's what you can walk away from. We ran a Zillow, you know, as accurate as that is, ran a Zillow estimate of what their rental property is worth, backed out all the, like I said, the commissions and what their capital gains tax is going to be. And lo and behold, it was enough money to pay off those two mortgages on their primary home, save them $1,600 a month. They're only making netting about 1500 on their rental. And so it made perfect sense to say, you know what, get all your facts together, go to your accountant, double check the depreciate, or excuse me, the capital gains calculation that I did. I'm not an accountant. Make sure it makes sense. And if it does, get rid of that rental, free up your life and free up this debt. Because, but just, I think what, you know, a problem that a lot of people have is they look at, again, I got to save, save, save, right? That's why everyone has trained. But what you and I do differently, we look at the liability side of things too, because remember folks, you pay off that debt. It's the same as having, you know, give you an example, let's say you have a $6,000 credit card balance. If you have $100,000 saved up and you're drawing 6% off of it, that's your $6,000, right? So do you want to have $6,000 worth of debt or do you want your income or this investment to pay you 6% and then pay it off? Well, obviously, you want your capital to be working for you, but people don't look at it that way. And so, well, many times as we've said, we'll have clients that'll have, you know, a credit card balance or a small, I just had one, I just, a plan I just wrote last week, they had like, I don't know, it was like $3,800 or $3,900 of a auto loan that was remaining. And it was costing them, geez, I think it was like $4.50 a month and like, pay this thing off, right? They're getting ready for retirement. Pay it off and save yourself that monthly cash flow. So that's what risk will do for you, but it takes a lot of human intervention and experience also. Yeah. But that's the name of the game. Determine your expenses through the risk program, pay off or refinanced with what you can. Like Jason said, I love that term arbitrage. Know what your net income is and then the fourth step, we begin working backwards, right? You start with the end and say, this is what I need for retirement. Now how am I going to do it? So now you understand that. Let's start, Jason, giving some ideas about how do we produce income in retirement to achieve that goal. Yeah, I mean, one that always sort of pops into people's mind is dividend pain equities, right? Where you've got companies that are paying regular dividends, you know, you're not chasing after ones that just do special dividends every once in a while. But you know, that's a tried and true practice of buying companies that remember you buy a stock with the hope that even growth stocks, even Nvidia, right? Your hope is that at some point as a shareholder, that company will mature to the point that it will start to return cash to you like as an owner of any entity. You didn't, you know, you've got the greater full theory of, I want to buy this thing and sell it to somebody else when it's worth lots more, which isn't bad. I don't say that as a negative, but that is what you would do as a symbol buy and hold or buy and sell growth investor. But if you're going to hold in video for a long period of time, your goal is that your share of this company that you bought when it was still immature grows into something that later is producing income for you. That now I have a piece of this thing, you know, this 1% stake and whatever it is that now later is this 1% of said companies way bigger and they're starting to pay us shareholders part of their profits part of their income comes down to you. And so dividend paying equities are something that lots of folks sort of aspire to own in a portfolio where you just sit there and earn money off of the dividend from the stock. That's right. As I always share, my mentor when I was growing up in this business, he had a great saying, you get paid away. Right. Exactly. You get paid away. So here's an example, folks, you can, and this is really fun. We love doing this. It's really fun. You can build a portfolio. If you're building a dividend focus portfolio, it's really fun to do this because many of you would be amazed at what some of these big blue chip companies that you're sending a monthly bill to every month with their pain. So I am not recommending this. I'm just giving this as an example. Let's take AT&T. Right. Stock's been stuck, you know, pretty narrow range last 52 weeks has been as high as 1974 as low as 1389. It's almost like a preferred stock in a sense. It doesn't really move a whole bunch. But guess what? The dividend yield, 5.87%, almost 6% yield and the stock is up 12.6% for the year. That's what we're talking about. You get paid away and so you collected almost a 6% dividend and had you bought it at the beginning of the year, you'd be up almost 13%. But you build a portfolio of these and remember, dividend stocks pay dividends. How often, Jay? That depends. Some, you know, some are quarterly, some are, you know, manually every six months. It doesn't do it. Also, look at that because it does depend on how often they're paying and going back to your comment about the yield, right? So yields important, it just gives you a sense of what the dividend is annually in sense divided by the stock price. Well, another neat part about dividend equity portfolios is goofy as this sounds. If it's for long term, who gives a rats backside about what the stock price is? If they're paying you that dividend over time, stock price goes up, stock price goes down. I don't care. I'm getting 87 cents a month for every share that I own. Don't worry about what the stock's doing every day, every week, every month. Like you can just let it do what it's going to do. Let them worry about paying you your dividend, especially in some of these dividend aristocrats that have paid for years and years and years and years and years and they enjoy the fact that they pay a dividend. They pride themselves. They're very, very, yeah, they own it exactly. So you know, again, you don't have to worry about the ebb and flow of price as long as you're getting your coupon every month, quarter or whatever. And again, when you build your dividend portfolio, again, you structure it, the reason we're talking about how often they pay, most of them are on a quarterly basis, but yeah, there's something that they pay differently. But you can structure it where you go, okay, I want to get a paycheck every month in retirement. Right? So you can say, all right, these stocks pay on whatever the first, yeah, I guess it'd be the first, the fourth, and whatever, the eighth of every quarter. And then another one that pays on the second of the month, you know, so on and so forth. So you can structure where you literally have a check coming in every single month. And so I think it's, you know, when Jason and I were growing up in this business, dividend investing was really prominent. You know, that's how, frankly, the little saying goes, we used to put, you know, widows into these, right? You'd buy a utility that was paying five or six percent and, you know, that would be a big bulk of their retirement income seems, you know, the advent of ETFs, et cetera. We kind of got away from that, but boy, I'll tell you what, folks, that strategy is there and there are some very nice juicy yields with, again, you know, how many of us write a check every single month, AT&T, and let them pay you instead of you paying them, or, yeah, let them pay you instead of you paying them. So it's a great way to go. All right. We'll continue on. Let's wrap it up. Kristen Snow on the right now, Chuck. Welcome back to the John Sanchez Show on his stock 780K, which would Jason kind of Sanchez wealth management. Hey, as a quick reminder, you heard it earlier, we are changing times after all these years at five o'clock. We are moving down. I'm moving up, but we are really moving up, but just not in time. August 5th. Jeff Altman's reference there. I like it. Exactly. Yeah. Wheezy. Perfect. Yeah. Oh, it's great. August 5th. So next Monday, we are going to be changing our start time to 3 p.m. Greg's moving to four o'clock and we're going to take over the three to four p.m. slot and really looking forward to it. So adjust your calendars. Don't forget, you can always listen to our podcast if you can't listen live. Of course. Don't forget about that. But we are really looking forward to it. I know Greg is and Jason and I definitely are and well, it's coring to white. So it's going to be fun, Jason, having a nice, nice, nice switch. We've kind of been on a run. I'm ready for a change. I'm ready. Yeah. Change is always good. Yeah. Like you said, I mean, for folks who don't use the podcast, every single one of you, if you have any problems, give us a call. I can get you set up on your iPhone, Android, whatever, and you may find it fairly liberating that you can just click a button and listen to it whenever the heck you want instead of a radio and so on and so forth. And, you know, again, I think everyone needs to, don't be afraid of the technology. I promise you, it's super easy. Absolutely. Great job. Great point on that one. All right. Well, we are quickly as always running out of time. Yeah. Let's just stay on this one, you know? You want to? Yeah. Yeah. I'll stay on dividends and we'll take it up on Wednesday because there's a lot of good ideas here. Yeah. Yeah, there really is. All right. So let's wrap it up on the dividend side of things to kind of finish up the show on this. So we talked about, again, building a portfolio of dividend producing stocks. And you can schedule, you know, you pick your companies, you know, it's not the number one reason. But, you know, you want to pick your companies from fundamentals, all the things we talked about. But, again, if you get a little creative kind of structured where you almost have a check coming in every single month, what would you say the biggest con is to a dividend a portfolio or a portfolio that has dividend stocks in there? Yeah. I mean, I think sort of from the notes, the, the, nothing's fixed, right, that they technically can change the dividend. Yes. They can cut the dividend. AT&T, Disney, et cetera. I mean, they just made it go away, right? And so, you know, historically companies are paying dividends because the cash flow that the company is generating, they think is better suited and shareholder hands than reinvesting into their own business, the sort of return on investment may be better in your hands. And so if they either, you know, have tough times or, you know, in some cases, they find some other new growth initiatives, they could cut back on their dividend as they refocus on AI, but, you know, again, that's, that would be the knock is the dividend could be reduced. Absolutely. Yeah. Or, like I said, or eliminated. And I was having that discussion with a client earlier today and it's like, yeah, keep in mind, you know, when things get tough, first thing a company will do, besides, you know, laying people off is they will eliminate or reduce completely, reduce or eliminate their, their dividend completely to preserve the cash. So we will continue this discussion on Wednesday. Great job. Jay, as always. See you tomorrow night on the John Sanchez Show. God bless. Have a good evening. Sponsored by Sanchez Wealth Management, the material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sansheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through Independent Financial Group LLC, a registered broker, dealer and investment advisor, member FINRA SIPC. Securities offered only in states John Sanchez is registered in. Sanchez Wealth Management LLC and Independent Financial Group LLC are unaffiliated entities. 5280 exteriors James Hardy citing is a low maintenance citing made primarily of cement that resists flame spread and repels woodborne insects and woodpeckers. Through the month of July, you'll receive free rigid foam installation with the purchase of whole house siding. That's installing additional insulation behind your siding for free, but only for the month of July. 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