Welcome back this is an investment advice are high and Greg Taylor your post. And him if we shot a missile or talking about. Is your money and we talked about bond buying program in -- gave the analogy of a -- -- how he never liked him because when someone else would jump off. And then he came crashing -- -- we -- in any -- that's a good analogy Sean because. The interest rates in a bunch count the same why is interest rates go one way the bond values typically can go the other. So there's a lot goes into a bond and there's a lot of different variables to it and when I -- you to all of you today. That the credit risk inequality the bond in immaturity -- and how -- the -- -- So there's a lot of variables but you know. I was recently read an article is just put up by the Wall Street Journal bond market braces for rallies in this is Monday November 18. And basically the start of -- same Smart analysts have been warning for years that the bottom of the bond market -- could come following that. Basically they were wrong initially -- bond yields continue to go down lower compression and pushing bond prices to unprecedented highs. And they just kept going where a weak economy little inflation the Federal Reserve policies took most unnatural. Levels. Enough to last forever and that's what they're talking about this article -- a lot of people I have bond funds to get dramatically. Game -- struck her and why isn't -- is because the interest rates. I -- coming down and why -- and go back up. Well in the -- you this they ousted the Bob -- Abbas comes down and we saw this the last man. If you own any bonds or your conservative investor in your portfolio. You know that. The Federal Reserve said that hey we may start tapering their buying eighty billion monitoring pound -- 85 billion that is -- event it's huge it's over a trillion a year and so what that's doing is that's keeping interest rates artificial artificially low and so. They've been -- you hear the word tapering and a lot of times what you think OK well they might -- why I don't know what that means. I'll tell you what it means it means they're not gonna stop buying bonds altogether. But they're going to. Ease you into the paint. It's like getting -- shot again a shot instead a gem and you know once they're gonna gem and it's always so another words instead of starting say okay were buying 85 1000000000 where -- -- by now by zero. Maybe the first month they buy eighty. And then they did aperture three months and they lowered down that seventy area fifty or sixty so it's going to be a a slow decrease wolf. Back in May as we said earlier in the show all they did was talk. About tapering -- didn't taper they talked about tapering it took interest rates from 11 and a half percent on the ten year treasury noted two point seven today. It's exactly him in May continue treasures were one point 6%. And they flew up overnight to will work round to seven you are now two point seven you think about that. That's a huge amount of interest increase. And he did demon raising interest rates they didn't even stop buying of that the bonds -- so really nobody knows a verdict is out home really what's gonna happen near -- -- in effect that we know. The Federal Reserve is at some point gonna stop buying bonds -- -- happens and interest come out it could dramatically. Decrease the value of your bond. Well even if they don't change what they call their their federal funds rate they've said that they're gonna keep that cranky -- near zero through 2014. That's not really right now what's controlling where interest rates are out on the treasuries are on the ten year bonds that the government bonds. What's holding that down as a fact that they continue to purchase those bonds right and it's not death. They cannot buy eighty billion dollars or 85 billion dollar over -- of months for ever they just they can't do it because eventually they want the money to do it so. They're going to they are going to slowdown. And the question is. How much exposure. Does your portfolio have to those types of bonds or that type arrest. And what's gonna happen to those assets that you own when that when they start -- tapering which they will start probably sooner than later. Well speaking of exposure -- back in 2000 article goes on to say. That people had collectively around 720. Billion dollars in bond holdings. Thousands in the year 2000 OK today. Over three point eight trillion with a T norm bond holdings so Bonser really gain a lot of popularity a lot of value people has seen them. There's a safe haven is a good consistent dividend -- really -- what this is a -- have bonds in your portfolio and you most likely do. You're gonna wanna know what kind of bonds they are with a maturity is. And are you going to get hurt if interest rates not if but when they go back up and that's what shall I do as your advisor is we talk about what you have -- following K. We having a higher rate will you having your savings and how this can affect you and your portfolio go forward because there are things you can do about it -- that you can. Do today. And and there -- -- can do about the fact of interest rates going up. That's -- to mitigate harassment and really agree with interest in about bonds is the only -- we talk about stocks in the stock market and people say wolf. What will happen to stocks if this happened so if F five North Korea launched a missile what what happened to your stock portfolio would go down 5% -- that on 10% no I don't know okay. When you look at Vaughn's. We know how they're affected by interest rates yes we -- and so -- we can do is we can look at your bonds that are in your portfolio. And I can tell you pretty close that if interest rates go up by 1% or 2% what's gonna happen how much your bonds will be -- no words. How much money will you losing your bond portfolio interest rates go up. And then you can look at say okay will is that something I can live with. Can live with that type of fluctuation or no I need to make a change right now before that happens. Love links when it this way if you were yen in May he came in a bottom bond a hundred -- investment union one point six and 16100 -- your interest. -- then dashboard today six months later. The new bonds -- two point seven S 2700. Year interest okay. That's more than a thousand dollars per year more interest. You're getting on the new bond who -- your old -- 1011 dollars less interest the next ten years. Pitchers nobody well somebody might -- but they're not gonna give -- an -- 1004 right -- gonna give you clustered in 90009 I keep in mind. That if you hold the won a majority yet you're gonna hear how to grant but there's an opportunity lost as any investor looks at and says look. We don't want you'll Monica's we know Levine a new money is paying higher just that's how bonds work. An article goes on for organization on investors could be in for a rude awakening if bond prices fall further. The Fed's stimulus program has never existed before. And is never before been withdrawn so no one knows really. Exactly what's gonna handle the bonds on the fact we know that they could be dramatically hurt -- so we wanna make sure they use an investor. They give your portfolios are well protected and laid out. So they go forward to when interest rates start to come back the other way that you can do things in your portfolio to protect yourself. But there's different kinds of bonds that reacts favorably as interest rates go up. -- for the last twelve months -- we've been talking with our clients on reviews when they come in you know how do we prepare your portfolio what changes do we need to make now. This is something that there were proactive to. Not reactive to you know you can you can kind of see the handwriting on the wall. And if you haven't talked to your advisor about this earlier advisor hasn't mentioned this tea. You need to sit down with him right -- -- -- if president has said -- did not addressing common -- with us whoa look at your portfolio. I'll tell you what types of bond you have an -- ties Cuba don't know what types of bonds they are promises your portfolio going to be affected by a one or two or 3%. Increase and interest rates right if you like to do that there's no cost or obligation come and sit down or review what you have now. 913825. To 66 and when your comment. You know are in the show very we talked a little Rudolph. Social security and maximize your sister -- benefits. We can review that as well. Well that's really kind of sums up for today Sean -- I'm glad did that we were -- to all these diversionary doesn't really distance areas that we've talked to you. About your Social Security about the different options about one to draw should you draw a 62 should do daughter 66. Should you wait until your seventy. Or should you do what we called hybrid approach and that was a dominant. None drawn my Social Security let -- continue to grow. And I'll draw against my spouse's social security and most most people look and no I didn't know lucky dog is my spouses in that lower. There shall secure Noah doesn't. We had him in Manila -- go well we know hundred assistants and I wanted to -- -- -- -- And we only 101000 people trying to -- five every day there's a huge number of people they need help on Social Security. Let's try and what we did -- when we went through that scenario. What we showed his spiced by sitting down and going through that Social Security Max and his nation with us other client they came and we we re and that. We ran a retirement profile for them. Financial roadmap. And what they can find out is by doing that Spain a short amount of time doing the planning and it over 300000 dollars to their retirement. Well on -- don't know until you find out sit down with your financial advisor and if if you wanna get an opinion from -- like the free to call us 913825. 2626. There's never a cost or you're never an obligation. For us to educate you if you at least 250000 more industrial assets -- find out the the -- -- -- equation. And to find out if you're on track him out of the retirement the planned on or she or something and they can do. To help you to you know with any of these. Potential challenges jail and then finally Sean we talked about bonds this three point eight trillion that is a huge number of bond holders out there. And my fear is a lot of them don't know the difference that their quote safe haven it's been good for the last thirty years. Could get damaged and my big fear about that is if interest rates soon come back and -- they went -- as our bond fund lost 20%. How do you ever get that 20% back. Well there's not very many years that bonds may 20% return but you know he's Sony answer question here -- it may take years. To Tehran time a long time so what do you needed today is sit down with us or sit down with your advisor. And prepare your portfolio for an increase in industry environment because in our opinion and a lot of analysts opinion that are out there. Interest rates are going to go. They can -- on the wall. And this is one of those rare I think opportunity straight to where we can kind of see what's there wrote in front of us right on what's gonna happen. And there are signs all over. And those signs are telling you what to deal and whether you re a man and sit down and in decide -- to make a change now to prepare myself. -- really mean the difference between how satisfy your your portfolio a year from now. Well on the bottom line is our goal is to educate you in it give you good and well thought out solutions to Wear your life let us use Social Security calculator to help determined using your spouse's benefits to seek to maximize those. And again will take. Investors in your portfolios are gonna match your -- harsh to do you were you wanna go. -- we love to see and had become and somebody office once again that number's 913. 825 to 66913825. To 66. Or you can -- just her website. -- financial. Advisors dot com once again you've been listening to investment advisor are you can -- every week right here on came easy for three or 4 PM on Sundays we'll talk with you next week. We appreciate -- wasn't. 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