Best of Caller Questions

This is a special invest talk best of caller questions compilation program. Remember the invest talk phone lines never close. Please call with questions 888 99 chart 888 99 CH ART. They will be played and answered on an upcoming invest talk podcast. Hi, good morning. So I just had a question on

what your thoughts about fixed index annuities are. All right. Thank you so much. Can't wait to hear the answers. Bye bye. I have a simple answer. It is do not come anywhere close to them.

Run far away, if anybody is pitching you a fixed index annuities, annuity you should turn around and walk away immediately. I have never, in my 20 plus years in this business, have never once, ever, ever, ever, and I don't know how, I could take up the entire show saying ever, I have never, ever had anyone that was happy they bought one, not one person, and I've talked to thousands and thousands and thousands of people. In addition, Steve,

in his prior career was in the insurance industry. And so he knows the games that are played in the insurance industry, and he knows the good products from the bad because he...

was intimately involved in many of them. He was investing on behalf of the insurance company in taking the money that people invest in index annuities. And so he knows a lot about them. And he says the same thing, never invest them. The only annuity you should ever buy is a fixed annuity. Not a fixed index annuity is typically tied to some sort of an index, a fixed annuity

earning some percentage. Now that's also very rare. You should probably never buy those either. They're very specific for a very small set of people, probably less than 2% of the population should ever even think about buying one of those. It's just annuities in general, not great to, not a great investment vehicle. Let's just say that. Hey guys, this is Stephen and Lubbock. I had a question for you. A friend of mine was telling me about a thing called the Delaware statutory trust.

or a DST. The quick way he explained it to me was it would be a way to do a 1031 exchange if you were selling land and you would sell it into this trust and it would be held there for two years where you wouldn't get as much interest but after two years it gets flipped into a fund that sounded more like a fund of different properties and stocks

that you could then transfer out of like you would be able to sell stocks and different funds. I didn't know if you guys had ever heard anything of that or if that's something you've dealt with. It seemed intriguing for a tax advantage on a real estate sale. So if you guys had any knowledge of it, I'd appreciate it. Thank you. Bye.

Now, there are two forms of DSTs called DST that can help you defer taxes on real estate and other types of assets. Now, a Delaware statutory trust, that is just for real estate.

It's basically taking that money and investing it into a REIT. The issue is that they're private REITs. You don't know exactly how they are different than REITs in some way, but for all intents and purposes, they're like a REIT. Like most REITs are private investments. You don't have a lot of clarity of what they are. There's a lot of fees there.

I don't love it because of that. I wanna know what I'm investing in and who the managers are and how everything's going. And you don't really get that with the deferred Delaware statutory trust. Now, the minimum for those are about 100,000. So the minimums are pretty low. But if you have a million dollars or more in deferred gains that you want to defer, I would go with more of what is called a deferred sales trust, same acronym DST.

But you can now invest in whatever you want. You can buy public rates, you can buy stocks, you can buy bonds, you can buy treasuries, you can buy basically whatever you want. And that is a much, much, much better way to go. Now they both have pros and cons, but if you are above the $1 million or more in net proceeds, I would go with a deferred sales trust over a DST.

Good morning, gentlemen. This is Brett from New Jersey calling about my 403b plan plan that was provided for me as a teacher here in New Jersey. I'm with a company called X Equitable. They have been, you know, with me since I started teaching. I found out that my fees are 2.34% annually. And I just wondering what you thought of that. Is that normal for a 403b plan? I'm considering shopping around. Do I just

You know, do some research, find out everyone else's fees and their performance and make a decision based off that. Four is 2.34. Good. We need you to hear what you think about this. All right. Thank you very much. Bye bye. So first for those who don't know a 403b plan is similar to a 401k plan, but it typically is provided by nonprofits or in this case, teachers.

Now, I had to pause for a second to see if I heard you correctly because I didn't think that the fees would be as high as 2.34% per year. That is incredibly expensive. And the power of compounding works both ways because returns compound over time, the more time you're in the market, the more beneficial, the more chance you have of having higher expected returns. So that's true.

but also the higher fees you pay, the more that's being left on the table, the more that's being taken by whoever is managing, running, advising this plan. Now, there could be a whole bunch of reasons why the fees are high, because the fees typically include investment management fees, advisory fees, administrative fees, could even be individual service fees. So first and foremost, I would ask why you are paying 2.34% per year.

Because on average, you should expect to pay 50 basis points to 1.5% for a 43B plan. That's a national average. So to your question, should you be shopping around? Probably. But first I would ask your plan administrator, what am I paying for? Because unless you're paying for some stellar management, which I don't think you are, I think you're paying for the plan. That seems overly expensive. And there have to be better options out there where you are not losing the return that you should be earning.

You are listening to an invest talk, best of caller questions compilation program. Your comments and questions are always welcome. Call anytime, 888-99-chart. That's 888-99-CHART.

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This is a special invest talk best of caller questions compilation program. Remember the invest talk phone lines never close. Please call with questions 888-99 chart. Hello, I was wondering if there is any difference between a high yield savings account or a money market fund for having extra cash invested or I'm sorry deposited. Thank you.

Well, as long as they're both under the FDIC limit and sometimes money markets fall under a different purview, but as long as they are government backed, there's really no difference in the safety. Then it's just yield and ease of getting your money in and out. If that's your bank, obviously that's pretty easy. You just go in and in your online platform, move the money to your checking account and you can go spend it.

Whereas if it's at a different firm, you might have to go and make a transaction. You might get that in a day or two. Maybe that difference matters to you. Maybe it doesn't. Okay. But the simple answer is no, there's really not much of a difference besides that yield that you're going to get. And obviously you want to try to get the better yield that you can't. All right. Hey, Micah Justin, open Philadelphia. Question with regards to bond.

and treasuries. In your opinion, it's now a good time to start dabbling and picking up some bonds of treasuries, with a yield right now at about 5%. And the second part to that, if I do purchase a five to seven year bond and treasuries that has a coupon of 5%, does it lock in at that 5%?

for that five to seven years or does insulation or interest rates affect that five percent. Just want to get some fixed income governance and want to lock something in relative to your term a lot.

Yes, so the first part of that question is now a good time to invest in bonds, corporate bonds, and treasuries. And I would answer that by saying it's always a good time to invest in corporate bonds and treasuries if what you're looking for is genuinely capital preservation or income.

A defined stream of income for liability matching, it could be because you have some sort of debts that you're paying off that are very low interest rate and you want to guarantee that you have matching cash flow for those liabilities at a certain time. It could be that you want to get out of the market for a little bit and you think that moving into shorter term treasures just for a short period of time is something you need to do. Or maybe you have a big purchase on the horizon. You can't let that cash

You can't let that capital be devalued. You can't lose money. And so you want to be in something safer. They can still give you a little bit of income, whatever. Now, the next part of that question is about if you lock in a coupon rate, right? You buy a bond to 5% coupon rate. And interest rates move. What happens to the coupon?

Well, if it's a fixed rate bond and it's a fixed 5% rate, because there are fixed rate bonds and there are floating rate bonds. But if it's a fixed rate bond bond, then that bond is tied to that covenant. You're going to get that 5% no matter what. Now, it could be a variable floating rate bond. There could be any all sorts of other things within that covenant that may change that industry, but a plain vanilla fixed rate bond, whatever the coupon rate is, regardless of our interest rate move, that's what you that's what you're going to get.

Now, the last thing I want to address is you said you're interested in five to seven year bonds. I would probably move a little bit shorter in terms of term. I would probably move to the zero to one year, maybe zero to two years and continue to recycle those just given that the rates are going to probably in the medium term move upward. Now, in the short term, they may move down, but in the medium term, they may begin to move upward as well. So I wouldn't go into the extended term area of bonds. I would keep it on the shorter term and keep in mind that

Sometimes bonds have a place in your portfolio. It just depends on your circumstances. Thanks for the call.

Every investor is working to build a secure financial future. Would this be an opportune time to get into annuities? Everyone's situation is different. Get your thoughts on CRM, Salesforce. And so are their questions. And I was just calling for your assessment of Blackstone Incorporated. 24-7, Rain or Shine. Invest Talk is made better by the power of you. 888-99 chart.

Hey, this is Randy, the truck driver from Iowa. Love the show, have learned a whole lot, although I still know practically nothing. Quick question about a 401k, which may eventually have to go to an accountant, but I thought that with all your experience, you might have come across this and be familiar with it. I'm over 70 and still working because I didn't manage money well, but I'm trying to put it away now. What are the laws? What is the regulation about transferring money from a 401k, a standard 401k,

to a regular IRA? Is there a limit? Do I count that as my IRA contribution for the year or is that all? How does that work? Thank you.

Very simple. There's no tax consequences. You can roll over as much as you want. You are over the age of 59 and a half. So you should be able to do what is called an in-service rollover. Most plans allow it. You have to check with your HR department, but it allows you to roll your 401k, even though you're still working into an IRA that opens you up to a lot more investment options. And it's usually a better choice for the vast majority of people. Once again, no tax consequences. There's no limit.

roll over $10 or $10 million. It does not matter. You can also make contributions to that IRA if you qualify. So you can roll over a million dollars and make your $7,000. Well, you're over 50. So $8,000 a year contribution to that as well as long as you have earned income. So

Yeah, it's pretty simple. Go up in an IRA. I would encourage you to do it at one of the large brokerage firms. We use Schwab, but Fidelity is good. You trade, et cetera. And then usually the HR department will send a check. Some will send it directly to the broker. We say, tell our clients if you can have them send it to the broker, that's faster, that's better. Most of them will want to send it to you first, and then you have to mail it off to the broker or somehow get it deposited.

Yeah, that's that simple and no task consequences as long as it's in a traditional IRA. If it's a Roth IRA, then that counts as a Roth conversion. That's a whole other story. So make sure it's a traditional IRA.

You are listening to an invest talk best of caller questions compilation program. Your comments and questions are always welcome. Call anytime 888-99-chart. That's 888-99-CHART.

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You are listening to an invest talk best of caller questions compilation program. Your comments and questions are always welcome. Call anytime 888-99-chart. That's 888-99-C-H-A-R-T. Hi Justin. I'm calling with a two-part question. The first one has to do with portfolio composition.

I was wondering what you guys do in a situation where I've noticed I'm having a lot of, for the last year, I've been owning a lot of energy, technical companies, gold, metals, mining, and materials. When the cycle is over, whenever that is, I do plan on holding it medium term, and I start selling out of those companies, what do you do as far as portfolio composition? Do you just keep the blue chip companies in your portfolio, or do you start buying growth in other companies ahead of time?

so that when you start selling out of those sickle companies, you know, you have a portfolio that is more set for the long term. And that kind of leads me to my second question, something like Amazon, because you can look into the company and you would start, you know, investing in something like that early and ahead of time, or would you, you know, wait for a further pullback or wait for your portfolio to sell out of some of those sickle companies? I hope that makes sense. If you can just let me know more about portfolio composition and what you do when you

Your portfolio is heavy into the set of companies. Thank you. Have a good day. Bye.

OK, so I'm going to stick to the first part of this question as well, which is about portfolio composition and what to do with cyclical companies. So I think I've talked about this before. And one of the issues with taking deviations relative to the market in terms of sector differences is you add on a type of risk we call tracking error, right? Because wealth in a way isn't just about nominal dollars that are returned. It's about relative dollars return, right? If you are gaining $100 and everything else is becoming 1,000 times more expensive, you're not really gaining $100.

Now that's an inflationary idea about how the worth of the dollar is in its purchasing power, but in the same way, your wealth is relative to how the market's returning. And so what we're talking about here really is a risk mitigation technique, which is what I do and what we do is we take a look at the overall market that we're trying to invest in and see what the sector exposures are.

And from there, in order to protect against some of that risk of taking too far deviations, create bands. So you don't want to be more than 10% overweight or underweight. You don't want to be more than 5% overweight or underweight. And so when you're taking a look at where you stand relative to the business cycle, if you're trying to get out of some of those cyclicals,

They should go back to your portfolio constraints. What are your most overweight positions relative to what your targets are? Those are the ones you want to trim first. It may not be that you want to hold on to all large caps because they're blue chips. It should be that you want to hold on to the best businesses that still have the potential to grow. And so first and foremost, you would probably want to cut down on your overweight names. And then you'd want to toss out anything that is relative to the other names, less likely to have the potential to appreciate and price and grow as a business.

And so going back to the first point, if you keep in mind when you construct portfolios, strict guidelines to mitigate risk and you stick to those, those are the situations where you tend to have the best outcomes.

A quick reminder, if there's a term that you hear mentioned on the program, but you're unclear about what it means or you have a question about it, we want you to ask. It's very likely that you're not the only one with that same question. 888 99 chart. I'm calling because I have a question about fully paid lending. I have my retirement account with fidelity and I received an email asking if I was interested or

enrolling in their fully paid lending program, trying to see what the cons are of doing this. I understand it can also be done in a non-retirement account, but then your dividends are no longer qualified dividends and turn into ordinary income. So I don't want to do that, but I was looking into doing it with my retirement account and seeing what you guys thought about enrolling in this program, just to get a little extra

yield on my holdings. If you could just share your thoughts on it, I'm not worried about fidelity going out of business or going bankrupt. So are there any other cons with participating? Look forward to hearing your answer on the show. Thank you as always. So fully paid lending, securities lending actually worked to help manage our securities lending over DFA when I worked there. And it's a great benefit. A lot of people don't know about this. So what is it? So securities lending is

Essentially, you own something and somebody else wants to borrow it for one of two reasons. One of them, they want to short the stock.

Another one is that there are arbitrage opportunities in terms of taxes. So there may be an international market where as a foreign investor, you have to pay taxes on dividends, where a local investor would pay a lower tax rate. So you'd essentially lend out the security. They would pay you a little bit. You get the security dividend back. And so you get a little bit more than you would get otherwise, according for taxes. So you mentioned it correctly. One of the downsides is that qualified dividends are turned into non-qualified dividends.

Now, sometimes when they manage securities lending programs, they will actually recall over dividend x dates. So, uh, such that the dividend isn't manufactured back to you and it remains qualified. But there are also certain types of securities you should always want to lend, regardless. Reads, read dividends are always non qualified.

Passive foreign investment company dividends are always non-qualified. Non-tax treaty country dividends are always non-qualified. So in that situation, it does depend on what type of security, what market of the security is, whether or not you would want it lent out in a non-retirement account, regardless. But either way, I mean, you hit on the other part, which is counterparty risk in this situation.

Back in the day when they would ask us about that at dimensional, I would say, well, you know, our counterpart is Citibank. And if Citibank goes under, you got bigger problems than not getting your shares back. Same thing here. Fidelity's not going to under.

They might, but they're not going to. And so if fidelity goes under, again, you have bigger worries than your securities lending. But either way, you really hit on the head the two things you should be concerned about with securities lending, counterparty risk is not really much risk. Certainly there's still risk there, but relatively lower and turning qualified into non qualified dividends. So I would say go for

This is an invest talk best of caller questions compilation program. Your comments and questions are always welcome. Call anytime 888-99-ChART. That's 888-99-CHART.

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This is a special invest talk best of caller questions compilation program. Remember the invest talk phone lines never close. Please call with questions 888-99 chart. Hi Justin, it's Bill from San Diego. Love your show. I'm wondering about EPS. The numbers seem to be all over the place and I was wondering if you have to look them up by industry and if so how would you find

but the industry EPS is. Thank you. Have a nice day. Bye. Well, I think you're looking at earnings per share and you're right that analysts across the street, they typically have different, they have different numbers on what they expect earnings to be for the company going forward. But there, there's typically an average. Now we subscribe the fact set. It's very expensive.

something that, you know, on the institutional side, we have the money to do that. And that helps us with the portfolio management process. The average person, it's difficult because it's hard to get that. Market surge used to be called Market Smith and investors business daily. You can subscribe there and get the average estimate for individual companies, but not for the industry as a whole. You know, like I said, we subscribe to fact set.

and other data sources, and we get that. To get this stuff for free, you're probably going to need to turn to your broker. And this goes back to something I talked about on the webinar, two days ago, which is

What are the tools to utilize? And a huge factor in my mind, if you're trying to do this on your own, you need a broker that has good data that you get for free, including earnings, estimates, et cetera. So I would turn to your broker first, and if they don't have the requisite data you want, then I would head over and maybe move your money to a broker that does. Hello, Luke and Justin. I have something a little different today.

I'm very low income. I make 16 bucks an hour, which is a dollar over the minimum wage in Massachusetts. And I'm trying to figure out where to put my money. I have credit card debt. So I would like to get that paid off first. But my employer offers a one for one 401k match up to 6%. So I could put 6% of

what I make into my 401k, they'll match it. And that of course is 100% return on investment, but I also have this credit card debt. So I'm curious what you would do in this situation. Thanks guys.

Okay, well certainly, there's some things that matter that we don't know, right? How much, what's the dollar value of the debt? What is your usage of these credit cards? Right, credit cards can be a good thing in terms of the rewards that you can garner from normal spending, should you spend less than you make. They can also be a necessity should there be an emergency that depletes all of your emergency savings, you don't have any other access to credit. But this is an important thing to know, because credit card interest rates are incredibly high right now.

And so if the credit card debt is nominally a lot, it could be the case that you're making these payments and you don't make any gains on actually paying it down. Now, if the debt is lower, such that you can contribute to your 401k, but also start to pay it down and make improvement on that credit, you actually can pay it down, then I would say max out that match. Because like you said, it's free dollars. If your employer is matching it one to one, which is a great match, you want to take in as much of that free money as you possibly can.

But again, it's important that you don't just keep building and building and building and building this debt. I suspect and I hope that there are other parts that you can cut down on, cut down on going out to eat, cut down on anything that isn't not essential until you get the debt handled, the credit card debt handled, but certainly up to that 6% if it's possible that you can still make

Inroads on that debt, I would do that match first and then start to pay down that debt as soon as you possibly can. Thanks for the call.

This is Investalk made possible by KPP Financial, where each Friday's subscribers to the KPP premium newsletter receive a concise and highly informative summary of the week's financial and investment news sent directly to their inbox. It really does give you a week that was round up in a quick read. It also offers a look ahead and various process and term explanations that will be interesting to every investor.

So you should be thinking about subscribing. You'll get targeted value, formatted for fast consumption, when you become a KPP Premium newsletter subscriber at InvestTalk.com. The InvestTalk Radio on podcast continues now. The phone lines are open. Call with your questions. 88899 Chart. Hi Justin, hi Luke. This is Bruce from New York. Great show is always.

I have been getting into charting over the past year. I have an unusual question. I use fidelity investments for their excellent tools. They switched from simple support and resistance lines to asking the user to select one of four methods. The four methods are darris box, prime number bands, super trend and volume profiles. I selected volume profiles because I thought it was the most useful.

I was wondering which one, if any, that you guys use for your support and resistance analysis. Thanks very much. Have a great day. Well, I'm not sure what they mean by volume profiles. I would imagine it would be where volume is. We use something like that, where it's basically volume at price.

That is part of the tools. We typically use more like Fibonacci retracement. So we use previous pivot points, consolidation areas, breakout areas, et cetera. So I'm not sure what the other ones are. Like I said, I think volume profiles might be volume at price. Yeah, I think that's what it would be. So I would use those more often because what happens is

When there's a lot of shares traded at a particular price, that's typically the market, the stock runs into a roadblock there because what happens is if it's going up into it, now there's a lot of people that were stuck and now they're back to even, right? They were at a loss. Oh my God, I'm a loss and the psychology of it. Okay. I'm back to even let me get out and back to even. Okay.

And same thing happens on shorting, right? They're short of stock and it goes up and it comes back down, right? They were down because it was going up and now it goes back to that price and there's support there at that price as well. So that I rather use the volume profiles more than those other ones. Thanks for the call. Hey, you can just and so from Philadelphia, I just need a little clarification. I know you guys probably the big issue of shares.

Not a good thing, not good for the balance sheet and all that kind of stuff. And I was just wondering how is the issue of shares different from, say, stocks with the videos where the gentleman stocks with the essential issue is 10 times the amount of shares. Also Apple has had a number of scripts over the years. We just want a little clarification of stock to it and sharing food.

When you are running a business, there are two ways for you to raise capital. You can issue debt or you can issue equity.

And so when we say issue shares, what we mean is the company is going creating shares, selling them on the market and diluting current shareholders. If you owned 5% before shares are issued and more shares are issued and you didn't buy any of the new shares, then you own fewer shares as a percentage of the company after the share issuance. So that's different from stock splits. So there are stock splits and they're also reverse stock splits. But NVIDIA just did.

was a stock split to bring the price of the shares down. Typically, when prices get too high in terms of per share value, companies like to bring it down, it does absolutely nothing in terms of capitalizing the company. It is just something that happens on paper. From a economic framework perspective, nothing has changed. So sometimes companies do this to bring the price down or sometimes companies do reverse stock splits to bring the price up.

Why might they do that? Well, maybe their stock is trading at pennies and they have to be above the $2 threshold that you have to have to continue to be listed on some of these exchanges. So generally speaking, stock splits, reverse stock splits, that's all on paper. Nothing has changed. You have the same percentage you had before the split happens.

Now, issuing shares, that's how you raise capital, existing shareholders, unless they buy a proportional amount of the new issuance are going to be diluted. So that's the difference right there. This is Investalk, made possible by KPP Financial. Investalk listeners and KPP clients alike are invited to take advantage of the many products and services of KPP Financial. For example,

The Invest Talk radio program and its podcast replays. The new online training experience, Invest Talk Academy, and the KPP Premium newsletter, distributed to subscribers each Friday. Learn more anytime at investtalk.com. The phone lines are open now and you can call with your questions, 888 99 chart. This is Mike from Florida. I just had a question about bonds.

I really appreciate all the information you provide. And I'm sure you know probably the answer to this question. But I am 75 years old and now investing more in bonds and in stocks. And I've been listening to your program for a long time. That's really a big help. But I'm kind of new to bond investing. So the question is, is that let's say the coupon dividend or coupon is one or one percent.

And then the yield to worst or yield to the end of the maturity, or I'll forgive you to call it, is higher, like 4%. I don't understand how it could be higher than the coupon price. That's a question I had. And again, like I said, I really appreciate your program. Thank you very much.

All right, this is very simple. Bonds trade up power, which is 100. When they're issued, they're traded 100 and they can, in the secondary market, they should trade higher or lower. They can appreciate, they can depreciate. Depending on where rates go from the time of issuance, depending on where credit spreads go, right? That underlying price can move.

Now, if you're buying it above par, above 100, you're going to get price depreciation over time because eventually when that bond goes back to maturity, you're going to get 100. So you buy it at 102, you're only getting back 100 by maturity.

So you're going to take a capital loss, but you're still going to get the coupon. You're always going to get the coupon as long as no default, right? So you're always going to get the yield to maturity or yield to worse is going to be lower when it's trading at a premium, lower than that coupon rate. So the coupon rates will call 5%. If you're buying it at a discount, in your instance,

Like you said, coupons 1%, you get appreciation if you buy at a discount. So say below part 90, because at maturity, you get 100 back. So you're getting the price appreciation from 90 to 100, and you're getting that 1% coupon each year. So combined, you have to look at combined price appreciation as well.

as the coupon rate. That's how bonds work and that's why you can get a higher yield to maturity than that coupon rate because there's two, brought two aspects to that total return.

Every investor is working to build a secure financial future. Would this be an opportune time to get into annuities? Everyone's situation is different. Get your thoughts on CRM Salesforce. And so are their questions. And I was just calling for your assessment of Blackstone, Incorporated. 24-7, Rain or Shine, Invest Talk is made better by the power of you. 888-99 chart.

I want to have your opinion on adding small and medium cap to the S&P 500. Since the S&P 500 is only large cap, I'm thinking to add some mid cap and small cap. Is it a good idea or S&P 500 is enough to cover the United States stocks? Thank you so much.

I definitely think broadening out your allocation to a minute small cap makes sense for the vast majority of people, especially those that are willing to take the risk, right? Small and mid-cap, that's higher risk.

However, longer term outside of the 2010s, if you go back, you know, when the cost of capital was something, those small and mid caps tend to outperform. They tend to have more upside and they just tend to grow better. Now, mid cap is kind of the sweet spot of risk versus reward.

because they tend to study your businesses and still a lot of upside to get into that large cap space. But the small caps, you know, they have even more growth, but they also have

you know, businesses that tend to be, you know, shakier. They can go out of business as well. Now when you're investing in broad indexes or funds, you know, you kind of diversify that bankruptcy or risk away. But definitely mid caps for the vast majority of people and small caps as well, especially when you look at the gap between earnings of large versus small, what multiples are trading at, you definitely get much better valuations.

and a better spread of exposures to different sectors when you're in that small mid-cap space. Thanks for the call. Now, I hope you've been telling your friends that we are available in video format on our Invest Talk YouTube channel that's Invest Talk with two T's. And if you go over and you watch our videos and you leave some comments with some questions, we will answer them.

This question came in from Matthew Byrd on Healthcare Investing. It says, I was wondering if you could talk about healthcare investing. The space has been difficult with rising utilization, her hurting the managed care companies, fear of GOP ones hurting medical devices, also higher interest rates, and the life sciences getting hurt by decreased biotech spending and difficulty in China. But the demographic tailwinds are in favor of many healthcare companies, and not just Eli Lilly,

Would you view this period of healthcare? Malays is a time to accumulate high quality names within the sector. What are your thoughts? Well, you know, I think you hit on a lot of some issues, right? There's some uncertainty about the effects of GLP ones, what that does for the overall utilization of healthcare within the United States. And bottom line numbers have been hurt by managed care sectors. But for me, I think the way you make

The most money in investing is being a contrarian. And as you mentioned, you're on the right track. Demographics are on the side for the long term, these healthcare companies growing rather than revenues growing. So I think that the biggest risk in the market is not being exposed to every individual sector. And as healthcare prices have fallen and they've been underperforming, I think now is certainly a good time to pick up good names.

You are listening to an invest talk best of caller questions compilation program. Your comments and questions are always welcome. Call anytime. 888 99 chart. That's 888 99 CHaRT.

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This is an infest talk best of caller questions compilation program. Your comments and questions are always welcome. Call anytime 888-99-Chart. That's 888-99-C-H-A-R-T. Hi there. This is Joe from National Calling. I have a question on the wash sale. My question basically is this. If I were to

sell say a thousand shares of a stock and then within the 31 days I were to repurchase 100 shares. Does the wash sale only apply to 100 shares or does it wipe out my loss for the entire thousand share lot that I originally sold? I hope that makes sense and look forward to hearing your answer on the program. Thank you so much.

Yeah, that would only apply to the hundred shares that you rebot. So, yeah, it's not going to apply to that full thousand shares that you sold. I would say, if you're unsure, just wait a little longer. It's not that big a deal. Market's probably not going to run away from you in the next few weeks.

right when you sold something or what I always say is buy something similar, right? You buy, you, you, you have Exxon and you want to own, you want to buy it back for whatever reason, go buy Chevron for 31 days, then sell it and buy back Exxon. Almost every stock in the market has a, a close brother, right? Cousin in that industry that has similar size, similar volatility, similar profitability, et cetera.

And I think that's usually the best way to get around the washroom if there is one. Hello, I have a question about TST that's the risk savings plan with the retirement plan. They introduced the life cycle of five year increments. And I wanted to change my life cycle 2030 fund to a life cycle 2035 fund to match my closer to my retirement date. My question is, do I do this on ideally on a day when the stock market is doing good?

or bad or does it not matter? Thanks. I appreciate your show. Great question. Now, what you're trying to do is you're trying to switch from a 2030 fund to a 2035 fund. Now, the 2035 fund is naturally going to have more equity exposure, more stock exposure. So if you're moving to that, that means that you're basically buying more equities, gaining more exposure to the equity markets. So ideally, you probably want to do that more on a down day

in the markets, and therefore you're going to be getting more of the equity side or equity exposure in your portfolio. Hope that helped. This is InvestTalk, made possible by KPP Financial. InvestTalk listeners and KPP clients alike are invited to take advantage of the many products and services of KPP Financial. For example,

The Investalk Radio Program and its podcast replays. The new online training experience, Investalk Academy and the KPP Premium newsletter distributed to subscribers each Friday. Learn more anytime at investalk.com. The phone lines are open now and you can call with your questions 888-99-ChART.

Hey Stephen, Justin, my name's Justin. I've been listening to a few weeks and love the show. I'm in my early 30s. I'm a new investor and have about 25,000 that I would like to invest for long-term hold and growth. I'm a little apprehensive right now because the market is so volatile and it seems like all of the top analysts believe that we may be soon trending downwards no matter what happens in November. In my position, are there any investments that make sense in the time like this? And if so, what would you recommend? Thanks in advance and keep up the good work.

Well, there's always opportunity in every market. So don't get discouraged by a broad market that might be overvalued, right? Because the market right now is very concentrated, very top heavy in the very expensive tech names. But that does not mean that there aren't opportunities elsewhere.

on the industrial side of the economy, a commodity side, which right now is very, very cheap in relation to history. If you've been listening to Invest Talk for any length of time you know right now, I think precious metals are a great place to be.

So don't get discouraged just by the broader overarching valuation of the market and how maybe disconnected it is from the overall economy. Try to focus on individual names, learn about different industries, take this time to learn more than invest. Hope that helps. Hi Steve or Justin. I love your show and appreciate your advice. I'm curious about what account would be best to trade on there.

I have a Roth IRA and individual trading account which follows the better for making trades and investments. Thank you.

Well, if you're trading a lot and you're creating short-term capital gains, then a tax-deferred account, like a Roth IRA, would be the best. If you're a buying holder and you're typically not selling very often, then those type of investments are better in maybe taxable accounts because you're not creating taxable events very often. So, depends on how much you trade. For most traders, a tax-deferred account is best.

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or shall statements on this program be considered an offer to buy or sell security. Because such advice is rendered solely on an individual basis and at times will require that the investor review a prospectus before investing. Investalk is a copyrighted program of Klein, Pavliss, and Peasley Financial, a registered investment advisor firm which retains all rights. For more information regarding KPP's investment advisors, call 1-800-557-5461.

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