Sep 11, 2017|
Full Show 9-11-17 by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This is the financial exchange with the very Armstrong and chunks of you're exclusive look at business and financial news affecting your day you're simply your world. Stay informed and up today about the economic and market trends plus get breaking business news and every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. It was. Sixteen years ago today when we were ruthlessly attacked. By Saudi Arabian terrorists we all remember where we were and who we were wit. They never forget. Hi everybody it's Berrian chuck what you hear on a Monday and I have to tell you what day it is it is the day after her. What turned out to be not quite as bad a natural disaster in Florida. As many had expected certainly on Friday we thought might be worse than we're sitting here looking at today. Yeah unfortunately largely being spared because. Hurricane Irma spent a little bit of extra time over Cuba and so that happened to weaken it just enough and changed course just enough. That it did not make direct landfall in that Tampa Bay Area which would have been the worst case scenario even without that happening. You still about four million a little bit north of four million people without power in their homes I saw this morning just moments ago it was six million. That you know you can't begin anything until you get some power and Florida power and light has said that it will be weeks in some cases before some people get their power back so it's not something you know it's not. Something where they're gonna be getting power back on Tuesday or Wednesday this week there are a lot of people that might be without power until close to October. There may be that I think if you watch the rapidity. With which they get this power back on like you'll be amazed. You'll be like if it's six million at its peak I think it is the number today yup if it's if it is in fact six million. Watch how rapidly that number drops is at in in terms of one week the majority we backed by the end of this we have really well it's it's remarkable with diesel linemen can do once they get the crews down because they were ready they knew this was coming right so you've gotten linemen. Coming in from other states that are ready to go they're just waiting for the trucks to. To be with a clear the road. Right on pit and the waiting for gas and. In the big thing that you see what went Florida deals with these hurricanes. They are very well prepared in terms of the response afterwards just because they know that they need to be in particular some of the things the that they do. On the insurance side a much better than a lot of other states. And so they do have I think a more rapid response to this and afterwards. Promise you still left as you said look you gotta get you know all the trees out of the roads and ripped up in this in that you've got to start restored power it's it's a process to get people back to normal. And you still are going to have billions of dollars worth of insurance claims when it's all said and done it's 42%. Of Florida's retail gas stations had run out of fuel as of 1:45 PM yesterday. And 14% of Georgia. Gas stations did not make you doubt it's if it's been one of the biggest problems is getting fuel where it needs to be in part of that. Is because you already had ads shortages somewhat because of hurricane Harvey taking out refineries in Houston break just a week before and so. It was kind of this this double whammy where you had you know the infrastructure for gas was taken out a week ago and then all of a sudden you all these people trying to get out of town this week. And it's no surprise that you don't have gas in a lot of parts of the state right now. Big question is when will be airports begin to open. Miami has said that they were not specify yep but I would imagine they'll be open either Tuesday or Wednesday of this week okay. Tampa unsure right now and they they still not specified either but. I would imagine within the next couple days you'll start seeing them open they won't be running full schedules for another week. Right right it's it the airports are down. Big question too is who's going to be writing the checks if you look at insurance company stocks today there rallying. It looks like a lot of reinsurance companies are going to be writing these checks for the damages that are done and that recoverable by insurance. Other way to reinsurance works for those of you who aren't familiar with determine you don't necessarily know what it is reinsurance is with the process by which an insurance company. Rather than bearing the entire wrist for claims and then goes and says OK we have 500000. Hurricane policies what we want to do is go find another insurance company who will insure the risk of our potentially below and don't pay out those claims they at least some of the risk off to another insurance company and their companies that specialize in this so it's not something. You know where. Liberty Mutual goes John Hancock into Haiti wanna buy some of these. There companies that actual actually go out in specialized just in a reinsurance. In being able to measure that additional race. And these are retail companies that you may have heard of Axis Capital. Aspen Insurance companies Validus holdings those are just a few of the names. You don't think of those companies as you know your child or your Liberty Mutual know these these are companies that specialize. In reinsurance digs do exactly the good thing from a financial perspective. Is that. You we haven't had a major catastrophe like this since 2005. The thing the really big sailor was bad it was but from an insurance claim standpoint. The these insurance companies are well capitalized depth and you know you look at the the amount of cash that they're sitting on. They can write these checks now I I we don't even know what the checks are going to be 40000000050 billion Sanofi billion. I don't think it's going to be hundred billion days between. Permanent search perspective no it did there's gonna be in it a huge additional cost that has to be born because of all the uninsured people specially down in the Houston area. But in terms of the actual insurance claims that are paid out. It's looking like it's not going to be as bad. As it could have been simply because Florida in general. Again tends to have better coverage as far as hurricane insurance is because it you're required to its in the state understands their in the path of these hurricanes. Houston on the other hand. It's it's a mess I mean it is a mess with how many people are uninsured there and are going to have to go through other means nor to try to put their life back together. Our first guest today will be Aron Ellsworth who used to live in Boston now lives in Houston and works for the Wall Street Journal she's gonna talk to us about. What is going on in Houston and when employers are doing to help. They're workers because that's a big problem. Evolved a lot of people in Houston just can't get to work and a short and it better and that's gonna hurt the idea that the workplace. Oil prices what's gonna happen to oil prices as a result of hurricanes. Harvey and Erma we don't know but we can tell you is after Katrina hit New Orleans. Oil prices dropped and oil consumption dropped a lot. Yeah and it's twofold when you look at what's going on in the Houston area because number one you up all of these refineries that have been offline and they're coming back on line you almost back to mobile capacity now. But the effect that has is look if there's nowhere to send this oil you have a demand drop in the short term. Beyond that now you have all these people without cars in the short term because the cars or flooded washed out to see whatever maybe give a ride their bikes and so you don't have as much demand until those auto claims get wild and you start seeing people with replacement vehicles and things like that. And so for royal. While gas prices are up because of the lack of refinery capability oil prices are moving a whole. Well and after Katrina to your PowerPoint. Oil consumption was down 2% over the next ninety days Jeff took ninety days to get tiger back. He had to get that through the system. I would think. That these two hurricanes are gonna impact oil to a greater degree than. That and contributors of where they hit what just dial larger population down you know you think about the the population that is negatively impacted. They did not they're literally not selling any gas in fort for days that I don't sell any gas. Houston and outs only guessing Houston lawyer and in I don't know if you saw the report Goldman Sachs put out a report I think was last night or maybe yesterday afternoon. That the net impact of these two storms expected to weaken third quarter GDP by up to 1%. Yuppie it will pay and and I think there is they'll be negative impact on GDP in Q3. But it won't there be an even more substantial. Dean. In Q4 and all next year is these are we get the average family lost 200000 dollar fourth possession dip. They're either gonna borrow the money. The year get I don't I disagree you don't think they'll make that up. Now it's just think about it the people aren't and shorten decking or go buy everything that they had before. Well that they're not going to buy every single item that they had will not right away but don't think they'll eventually want to get an ally in an interview ever get back to breakeven I think. Because here here's the way you look at it from an economic perspective let's see that. Let's say you have GDP pushed down by 1% for the quarter OK okay. All of us and all of the future activity that was previously beat back compounding interest and okay if you have a year where you're down 20% the and you make back 20% you're not back to breakeven. It's easy you just you don't quite ever get back there when it comes to consumption. And frankly you can make the argument that we don't necessarily need to in some cases but. I just think of all those piles truck and you're gonna see the if the at the end of every driveway there's justice mountain. Of furniture. Bids. You know clothing. The about how long it took people to acquire all star you know I think about when you move into a new home now and you say how much stuff Jia arrived I've got all this space in my new house in by the time you're sitting there twenty years later ready to sell some public office for political ticker if it it takes time it's not something where in a year to ever wins back to normal. It's gonna take 1520 years before people get. You know kind of backed you know having everything they did before just doesn't happen overnight. Up next will be joined by Eric L worth from the Wall Street Journal. Headline reads Houston CEOs raced to a man and a battered workforce just how bad are things in Houston. And how is it impacting the workforce that's our next topic. From the financial exchange radio network. Even without health care or tax reform all three major indices remain near record highs get the latest info on the sectors that are winning and those that are brakes here we Berrian just on the financial exchange radio network. Hi this is -- -- with -- an important message for you and your family if you had a successful career and haven't yet taken the time to plan for your future now's the time to make that call Cushing and Dolan and senior partner Todd let's -- have been helping families like -- with their state plans for more than thirty years and he's got a brand new guide out this month called back to the basics it will help you learn about the bare necessities needed to create -- -- plan but will also educate you on important items like how to avoid probate and passing your assets along to your family called Cushing and old right now at 8668485699. And ask for your free guide today that's 8668485699. You can also download the guide right now by visiting them online at legal exchange showed dot com proper estate planning is critically important to a safe and relaxing retirement so don't delay get this free guide today protect your assets and enjoy your -- years 8668485699. Or download it right now at legal exchange showed dot com. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I'd been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. 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Yes so you know for first time home buyers what we are telling men are couple things one be patient. Yes you know we we see a lot of first time home buyers who are making five and fifteen offers two for fighting house now and offers except it's extremely competitive okay. And so they have to temper their expectations. Oftentimes they're they're paying more than the other half do. Paying more than the asking price yeah yeah it is quite common right now in and in some cases are actually having to to research other towns and rooted in considered first because. You know it's very pat can't afford their dream home exactly. I'm getting we're telling first time homebuyers to really be aware. Of all the mortgage products that are out there that are relevant to tell us about this leaders thirty yes so we're really excited about this product we just launched its cult leader thirty. And essentially what it is is a fixed rate loan from. 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Get the most comprehensive weekly economic update from CNBC senior contributor Larry Kudlow every Friday at 1045. Only here on the financial exchange radio network. How are corporations in Houston helping get their workers back to the office. Well we're joined by good friend Aaron Hill worth he used to hail from Boston but moved to Houston. And this is the five years ago Aaron who is MI a right in my timing. Three years ago while. The how did you survive the hurricane by the way we use safe and did your house you get affected at all. We're saying it. Luckily it without really realizing at your. Record called the eight. And the area that I that I island and doesn't. Doesn't. Wasn't too bad it in my house is fine but of course. Working at the store from rock or LA about. In all of that of that. What percentage of employees in Houston area and were affected by the flooding. Not it there about ten per cent. The oil companies into it at that done by greater in partnership which in our regional amber calmer. They took a look at it and making panel is. What it would feel widespread yeah. That. Think the last assessment that I at Atlantic. 300000. Homes. Damaged or discourage in some way behind the flooding and that was that was crunching the numbers last week intranet that number has gone up at that point so. Very light. And it's a ten or 11%. Of workers were negatively affected has that impacted their ability to get back to work to the refineries and get those refineries back up and running I've I've read that most of the refineries are back. A lot of refineries get back. It was an honor to be pretty estimated that EDU. Correct it crop file like 10% over the next couple months which could be panel. What three billion dollar reduction in economic output. But you know you aren't seen it. Mean companies getting back to work they'll be able to get back works fairly quickly that will mean that we are starting to see. Get left frequently did this story admit that issue is that. To get back to work in need. They're workers. You Leo it could be there and a lot of these simple is. What are you were forced from their homes by flooding at that are out dealing with there own or at all. Issued and there'll. These corporate players like occidental. Like Coca Guerrero like. Our battle. Having helped their work earth to get back on their feet whether it's by an actual help with loans so that they Berkeley. Damage belonging to or actually. You know allowing. Teen. Volunteered him always. Go out helped. There their coworkers aka their house is which is quite a job. Of that a bit did so. Companies are taking different approaches the years they loaning money. Two to some of their employees who are needed where it's needed a Venus and these people might be devastated there are many insurance. Right well. You know the computer basically operating interest we learned where they can't you know occidental is offering will act as a dollar grant cover up that entrance weren't they are offering. A lot of it in yet how much money. We're talking about it here ill they'll really area but at least at least one that it'll be it'll be a million. You know how boat deck cars like what are they gonna do because a lot of cars were destroyed. How Long Will it be before these people can go out and buy a car at a dealership and get to work. It's good question. I don't know why you and at certain people have are very replete their card or what hacked at and your carpet. What it and you thought. An insurance. Or an hour and Annie get your elect has been out injured people all it does. It does take time early it can be awhile it depends on. What area air. How much they have to go there and. So based on the research you've done Aron. How Long Will be before workers in Houston return to full productivity. Well you know we talked to one company that basically said it took a deep ear. There was one company. That we catch Atlanta. Who was affected by flooding last year and and one we chatted with that. We're told via one of their executives that essentially it it all mean now that they're really. Finally. You know back to where where it was you know of course. And in one country is scouting but it here if you were a year and a few. Like what happened to you and just held quietly you could walk through. Streaks right now where there are whole block where. People had to rip out their current and exploring all of their belongings. Kirk and awaiting to be picked up buying by the trash collectors and they ended it out. Ya know we've seen the pictures I I've got to believe that's gonna take a long time. To let it get back to any kind of normalcy and that's assuming you don't get another flood. I liked what a hurricane. And Annika you know he Turkey season by the ways tomorrow. That's September 12 so let Pakistan go again. Monitor that it is our. I feel it. Erin thanks as always for your time we appreciate it very thank you Aaron L worth in Houston from the Wall Street Journal. Is it devastating event. What does it mean an end we saw this with both Katrina and sandy okay when you talk about these big hurricanes that have direct impacts on population centers. Katrina you still don't have New Orleans completely rebuilt now sandy. You still don't have areas of the short of the of the Jersey coast completely rebuilt. You techniques. A decade to get back to normal in some cases have you given it week last week we talked about you know who should pay. For all this damage have you given any further thought of that and it might my question is. The feds are gonna write big checks in the billions of dollars to write it 152030. Billion dollars of federal money. That's been a low wind Houston and it's gonna flow in two Florida. My question. In our poll question today news should that emergency fund B gift in other words that just something. That people in Minnesota ready checked for people in Vermont ready check for. Or should that be alone. He give any thoughts on that yeah my thought is in this case because it's already Apogee that your your party of the dam has already been done you say look we're gonna give you check for this. If you want to be considered for this again then you have to meet a strict federal code in order to build in areas that are afflicted by hurricanes. I mean the I was looking in in Tampa. You know all the housing that's been built is built like ten feet above sea level dipped so if you get like one of these storms. It's gonna wipe out you know Tampa didn't get hit as hard as had been expected over the couldn't reach if you had a direct hit there if you have a fifteen foot surge in a direct hit from way to cap the rear supply right. It all kinds of problems like to have happened there returns in just an island just because that surge. While he'd go to our website to vote should the emergency fund to be a gift or a loan. Financial exchange showed dot com. Is how you vote on our poll question today. We'll be right back from the financial exchange radio network. Making your Smartphone even smaller here don't go mobile lab by surgeons financial exchange shelf in iTunes or those who. Who plays stores this is the financial exchange radio network. This is a special announcement for all landlords chasing down only rent payments and making trips to the bank to deposit checks -- hassle out of rent today we're zero and leader banks all mine rent collection tool he ran automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more -- -- rent your payments for each unit to receive regularly on the same day every month tenants pay nothing in the first six months or free throw landlords visit WWW dug see rent dot meant to learn more or call 7816418691. This is very Armstrong from the financial exchange did you know that once you turn seventy and half you are report. Required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% IRS penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan called the Armstrong advisory group to request our retirement plan distribution -- at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Juries are for two securities America incorporated member finreg SIPC and advisory services are with the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. 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Member FDIC it's not too late to get a great grade and whole mortgage leader bank specializes in a wide variety of purchase and refinance loans that some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means of faster closing calling 8776917. B 900 that's 8776917900. Or visit leader banks dot com member FDIC's equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Time now for mostly watch a look at the market's performance so far today thanks to Darian jug right here on the financial exchange radio network. In the market rallying much more than I think anybody can expect tonight a lot of us came in. I don't know one for a Friday night Saturday made even checked I was thinking boy this could be pretty ugly on Monday morning when Wall Street opens. Yen largely the market rallying simply because hurricane Irma down in Florida not as bad as originally anticipated still significant damage. But a fraction of the damage that we could have seen had it struck in. With a little bit more force there what you're seeing right now Dow Jones about 223. Points the S&P up 21 the NASDAQ up 69. Biggest sector leading us forward is financial about one point 2% largely on the backs of insurance companies that are rallying because the claims expectations. Are simply not as bad as people anticipate you look at some of these big insurance companies united insurance up 10% today Aspen Insurance up nine federated national. Up thirteen so all the big reinsurance companies leading the way forward is. You know they are some speculation that the markets rallying partly because North Korea did not set off a missile this weekend if there's any truth to that. I don't know mean it would say they won't that went off today. Loud and it's I guess. Television this weekend good Demi and that is. Last week we learned that Boston is in the running to serve as the location of Amazon's second headquarters will be asking trivia questions today about Amazon. What was Amazon's original name I didn't notice until I got trivia outline this morning. What was Amazon's or regional knee. Are tech's number 68681. Listener with the correct answer wins it 25 dollar gas card. We're looking for the original name of analysts on. Tucker you have your rotten tomatoes thing I would say I do yes you on the worldwide web talker yes are you on the Sony Internet finding information superhighway does your own computer no shot. So he's going to typewriter or does it talk about the movie yeah. That broke this weekend it really good rec good numbers right chuck I mean 110. Outstanding numbers 117. Million dollars for it I can't believe that I am shocked by this is it apparently has gotten good reviews yet this is not the kind of movie that typically sees that kind of blockbuster number dashing and weakened us exactly an NFL weekend. Well it's NFL weekend. Everybody had the television on watch in the way they get dwindling days of summer deal with the budget the weather is nice up here and you know the budget will this movie so much. 35 million dollars. Stephen King. Jack as the world worldwide it's done about a 179. Million but this is a movie it's probably gonna do somewhere around half a billion dollars worldwide with what is it. It's I don't know what I never saw the original but I just this one inches so much better than via original as about a clown creepy climb pretty much. That's the premise of it and it got to 86%. On Roger Mears which cern which is certified fresh so it's getting really good reviews it's a movie about a creepy yeah I guess he murder shall. Affect. That I your grades it's graphic and emotional usher. But it could be better than a total likable and a pretty well at the murders children I've never understood horror movies why would you pay money. To beat necessarily terrified I. I don't generally do not have enough stuff going on your regular life that's just like scary enough now is that a young and his board let's go watch it scared me too darn well would turn on the whether they feel like go to the Houston if you wanna be scared go down to Florida there's ponies scary stuff real life. You know to pay. Or room hey don't forget to give Cushing and Dolan a call and receive their guide for the month of September it's called back to the basics a complete guide to estate and asset protection. You can get the guide by calling toll free 8668485699. Or you can download the guide. By going to legal exchange showed dot com. Donald Trump has not been good force Smith & Wesson or other gun manufacturers. You know what you're seeing is that in particular sales of long guns including assault rifles hunting rifles and shotguns. Dropped by two thirds for American outdoor brands formally known as Smith & Wesson. Us of their sails off 66%. For those long guns away compared to a year ago your stock was down 17%. On Friday. And beyond that you take a look just now the sky is performed over the last twelve months stocks trading at thirteen 74 right now to get a 52 week high of 2857. Is pretty much been a straight shot down since this time last year. Look at that. At what time at what point that's a local company equally great. Yeah and and look this is a company. That they're not gonna go out of business they're still profitable they're not losing money or anything we lay people off but they are absolutely going to be laying people off. And just the fact is the reason that you have little gun sales right now there's no impetus for people to buy one. But there's there's no Cyril and being taken away they can't sell overseas they can't make this the I guess they can't make up their bosses don't want buys more guns that Americans here. Anyway AO BC is the symbol forward it's. The trading at thirteen dollars and 73 cents and it is based in Holyoke. Massachusetts. Just watch any of the tennis over the week a lot of money. I don't know I I I normally do I just couldn't get sucked in this year just had too much going on. About Sloane Stephens. What do. Great depth story coming in. You know no one really was expecting her to win this Portman or even be competitive and it she was ranked 956. Now while in the world yes no it was expected to be anywhere near competitive that was an off tournament and a and she comes in. And she takes on a check for three point seven million dollars. As a result of for winnow after taxes broadening about 2.2 million okay. So yup hope that she just takes a million that says look I'm put this away I'll spend my one point two we don't have some on. Put some of that money away because again you don't know you're gonna have another chance so those of you who will are a little bit older will remember her father. John Stevens who played for the New England Patriots user number one pick that was or that. With her dad and he was one heck of football player Tuesday interest in 1988. He was the number one pick. In yet in the NFL draft interest I think he a rookie of the year for the pats. But I think he would in his career as I recall was cut short due to. Like a lot of football player's injury. What's interesting is that in tennis it's very rare that you see someone from out of the top ten winning tournaments it's one of those few sports think about it. It's one of those few sports where if you're like the fortieth best tennis player on the planet when you have no chance all right thank you that how often is just okay Federer wins Nadal wins Djokovic wins. They do you not know what else has chance typically and so politics to have somebody who's not even in the top hundred right. Well what's interesting is so after heard the last month including this victory mean she's gonna be up to number seventeen in the world. It's a big jump she'd been injured that's why her ranking had dropped GA has been so it in and that's she's a talented tennis player bile counts but had never had any consistent she she'd been injured on and off and so. You know I think we first heard the name probably five or six years ago. Why why actor in an interview last week this year upset somebody in. Quarters of yelling and she's very personable and she was. She she didn't seem intimidated yeah. And she'd been injured she'd been very badly injured and then she came back she made three point seven million bucks a year to date you 300 yeah. So he she made temple look she made the rest of the year this weekend when they gave for the trophy. She wouldn't give up you know like normally you'd say okay you can detect year value add on that. You rolled up that you don't let anyone tell us that things that she wouldn't let anybody. Touch that Jack fuse a good for her good bird he if you work hard you know. Professional athletes using Leo it's it's it's easy now that special athletes you know any. Note to our politics on the body the mine I mean it's it's a line to get yourself ready and this is probably one of the last. You know physically damaging sports. He think of the sport to do a lot of damage yeah football comes to mind hos hockey and to those of the two sports. We've suffered the most injuries. That's fair you know in terms of big time money sport baseball. You have injuries and the U catchers get beat up to they're squatting the entire time but generally you know the concussion oh no one walks away from baseball 55 and is like gee I can't walking like in the the bigger issues concussion yeah you don't teach tennis player getting concussion. Baseball players the game and company and how you weigh in tennis soccer playing days are ahead soccer players to get concussions because they do it also a lot of us up can cause of impact switched a lot of studies are showing are just as dangerous is the concussions even though they don't cause any symptoms right away basketball a lot of injuries but. What's awhile again as always see a lot of rolled ankles and things like that. China's electric car push lowers auto giants despite the risks of China very quietly over the weekend saying. We're going 100%. In your cell cars in China where 100%. Electorate like 23. I don't think they specified a date 2030. And the Christmas not in the story they did a story did Somalia in China obviously is the biggest market in the world and so auto makers now have a lot of incentive to try to get in there in order to make sales but the big question that you always face when going into China. Is how much it proper intellectual property protection in my gonna have been on as much as the eight the Chinese Government. Not good at defending and be in a lot of cases. The Chinese Government actively asks companies for their technology. Inning goes in subsidizes cup competition and you're sitting there saying well. Gee this doesn't make sense this bodes well for me for the electric car market because if a country like China says. We're going all electric do you have a huge huge push for investment four Volkswagen Toyota the big boys GM are gonna say okay. We have to go electric by the way I saw my first ship the bolt on the road in Woburn on Friday. Was it working it was working to head over twenty miles now he looked better than it did in the pictures and I I'll tell you these electric cars EU guys who pulled them but these people are coming around. Two electric car in many moving parts earn electric car. T guest speaker. Requiring card to be moving so totally orcas the stars are on twenty you know many moving parts that are in an internal combustion engine over our. A couple hundred lire 600 or so and 600 vs twenty. Guess which cars and have less maintenance. That's the mechanics if you're an auto mechanic electric cars are carriers that don't help your in the automobile service business. You don't like the idea of electric car you want to write anywhere fast I was talking to. Tests was the fastest car in the row. Missiles in 90000 dollars notes 35000. Both the cheap ones not are on the road. The you guys are I'm sticking around just to taunt you on electric cars these guys are in five years geniuses at. He's one of you two will be driving an electric cars on yours could be another weighs on the market now. Now you like the ones like what are what would they do for me. If there's new ones coming anyway. Will lead at that when we come back of the answer and winner of our trivia question will also be joined by Emery zinc. From morning star will be talking about a mutual fund might wanna grab a pencil and paper we'll be back from our financial exchange radio network. Work trumps administration hasn't passed any significant legislation yet but tax reform is front and center it past the enemy here. Keep it here with Barry in check for the latest on the president's agenda and how the markets are reacting and this is the financial exchange radio network. This is very Armstrong from the financial exchange did you know that once you turn seventy and half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their hiring a war they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% higher rest penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guide at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Juries are for two securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage yield this is an online product only and there's no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay log on to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new. 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. And taught I wanted to talk to you about these trusts. Do you in fact need to create trust if you already have a will get that question ally you know like a very irony trust I've got a will. You know sometimes talking about the basics is most important and in your right and people are so confused that commands say. I have a will lies they plan has done it and it's really not folks and and it in the reason is once you ask yourself that question so if you just have a whale just ask yourself this do you wanna avoid probate. While the answers yes I will not doing you know atlas you don't own a house you own nothing if you're poor you. Will probably suffice it could designate had no assets make sure you put like designated beneficiaries on your bank account you brokerage accounts. And you don't and trusts are for people that have passed it greatly real properties. Got money in brokerage account. Peace rules that immediate two pieces. I think that's fair I think that the safe thing to do is if you if you wanna know will as the Walt 'cause it won't avoid probate it will reduce estate taxes you're right if you don't have. Anything you know the only need a million in mass to have an estate tax though we won't reduce your state tax there won't avoid pro but it won't protect your assets from the cost of long term care. That's a concern of yours so those are three Waltz that it will will do so I think the answer to the question is yeah I think you need more. That it will most of the time. Time to get back to basics folks call Cushing handle and get their guide about basics of estate planning. The poll number is 8668485699. And most of you prefer to. Download the guide immediately to go to their website legal exchange showed dot com that's legal exchange showed dot com to download the guide. For the month of September. It is back to the basics September time to get back to the basics legal exchange showed a. The financial exchanges live on FaceBook and YouTube watch Berrian chug discuss the issues of the day and see which one smiles the most. Is it financial exchange radio network. This segment of the financial exchanges brought you by see rent your landlord take advantage of zero fully automatic on line rent collection tool. It is free for landlords within account at any participating bank and always refer attendance. Sign up and have written checks deposited directly into your account call 8776917900. Or visit Z rent dot net. For more information. On July 5 1994. Jeff Bay's those. Incorporated is online bookstore as can Debra. However that idea quickly went away after days of justice lawyer misheard the word as cadaver. And I think they made the right choice go with Amazon yes seems to get the day while it seems to have done well for them. Doug from its August had the right answer doubt he's taking home 25 dollar gas card to shell. And trivia is brought you by leader bank called leader bank today 8776917900. This about their new U savings account providing free online banking with one point 15% EPY. That's 8776917900. From leader bank member of the icy. No minimum balance bees may reduce earnings in a rate subject to change without notice and may change. After an account is opened. Joining us on the line right now is Emery zinc from Morningstar in talk about a mutual fund on the mutual on Monday Emery thank you coming on with us. And ever the fun we're talking about here's the boy intermediate bond fund with a ticker I'd I'd be a acts what's what's so good about this fund what do you like about. Well it's found. It's really equipment portfolio that it against the Bloomberg Barclays and active but it can certainly underweight and treasuries and beaver an overweighting debt credit applications that. Not big market factors including high yield yen mark to market. And asset backed securities they are about Mathieu he of the mortgage derivatives and currencies along the edge of the portfolio which it did and it did a little bit. Up for about editor who is looking for that in the most recent and peace deal on it is a little bit higher than a category at around two point 7%. Content category B 2.3 diet it's what it's really active in particular you know me. Put the most interesting different heaters for the team and credit them during that security group of you I really broke there of seven members that the asset backed him on Egypt he marketed as three. Our full time dedicated to mortgage backed and you can eat person dedicated more conservative group. Until all of those individuals are providing insight to believe purple limit their batons to deliver this fund allocated on benchmark security at its fair. On it and it worked really provide an apparent that what's that going to purple. Is this fund more income oriented or is it more geared towards stability. I either it's more income oriented but I would say it's it's stable at one of the reasons we rated this filter. It's incredibly attractive. I think given the fund's risk appetite and flexibility in particular bit of if we look at the performance of the last fight here that you are particularly kind. You know that that 103 point 3%. Ending August 17 and that is really better than 95% of its category parent. That they don't park over the same period of about two point 8%. It's you know we didn't. Particularly at risk on environment and I want always provided killing it didn't fund I'd been given what we talk about our debate between deep regret that the rest content and we purple alien editor Matt the company keep our very thoughtful about positioning regardless of the impairment. What are you overall expenses on this fund and how to they stacked up with the rest of the category. I don't really have a good process. They share content that are offered expenses are well and in particular if you look at. It has it 65 basis point fee that's twenty basis points last. Then you know aggravated it and media in front loaded here under with very low for what you're getting. Very good every thank you very much for the time we appreciate it. That's Emery zinc for Morningstar and we're talking there about the voice yet intermediate bond fund that ticker on that. You wanna look it up on your own as I eight. BEA acts you know Turkey have just thinking about bond funds verses equity funds and if you buy a stock fund. You're probably buying it with the expectation the enemy what eight or 9% on. All are in the long run yes somewhere in that in that area of bond funds you have to have a much lower expectations that you do for your seat for money right this isn't. This isn't money that you expected EU might have your remake is great return but you shouldn't expect to make more than what percent with with bond funds at this point depending on how aggressive you wanna get just as the pretty. Core bond fund I would expect to between two and 3%. I do not have high expectations for bond funds over the next act so what are the risks that you might run with the ball on is that it may not outpace inflation yet. Could go down in value conceivably if interest rates were to go up that. Hard to imagine right now at least scenario where interest rates are in spite her yet you know you don't see anything out there on the horizon right now and in general. When you're buying a bond fund it's simply is to balance the risk in your portfolio if you can't stomach being a 100% inequities. It's you balance that risk because you say look I don't know what's gonna happen. And I want this there in case things don't held a hand basket. It's not there to try to generate you. A great return. We'll talk more about what we expect for interest rates going forward. In the next hour of the financial exchange you know the perspective on interest rates changed a lot over the weekend. I'd say is more likely that interest rates remain low for at least the next six months as opposed to going up. Thanks for tuning in to this hour of the financial street. This is very Armstrong from the financial exchange did you know that once you turn seventy and half you are record. Required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% higher -- penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guide at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are there securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are unaffiliated. It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call 8776917900. That's 8776917900. Or visit leader bank dot com. Member FDIC equal housing lender and the lowest number 449250. Subject to credit approval leader bank a step ahead. Your dream home is within reach with a Jumbo mortgage loan from leader bank they're jumble loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by liter bank's local underwriting processing teams for additional information call 8776917900. That's 8776917900. Or visit leader bank dot com. Member of the -- equal housing -- stimulus number 449250. Subject -- credit -- -- -- a step ahead hi this is -- -- with an important message for you and your family if you had a successful career and haven't yet taken the time -- plan for your future now's the time to make that call -- and -- and senior partner -- -- -- have been helping families like -- with -- state plans for more than thirty years and he's got a brand -- -- out this -- called back to the -- -- help you learn about the bare necessities needed to create -- estate plan but will also educate -- on important items like how to avoid probate and passing your assets along to your family -- -- handle -- right now -- 8668485699. And ask for your free -- today that's 8668485699. You can also download the -- right now by visiting them online -- legal exchange showed dot com proper estate planning is critically important to a safe and relaxing retirement so don't -- get this free -- today protect your assets and enjoy your -- years 8668485. -- about higher -- And more specifically we're talking about required. Minimum distributions. Chuck when you hear that frees. Invariably. Somebody will kind of have this blank stare in their face because they don't know it's very hard to calculate how much each year you are required by law to take out of your individual retirement account. Yet the way it works is remember that you get a tax deduction every year when you put that money in to the IRA. But eventually the government wants to get that tax revenue and so what they do is starting at age 79 or seven and a half. They require you to start taking money out of your IRA and it starts off. Is a relatively small now but the problem if you don't take that amount out when you're supposed to. There are some very significant penalties that you can end up paying and by the time your eighty. The money that you have to take out the percentage that you have to take out of your individual retirement account is a lot more than it was at seven it grows every year so it starts off at about three point 7% that first year and it grows and when you get into your mid eighties starts to get to the port port seven or 8% so it does grow significantly in you have to be aware that that number changes each year. Just a suggestion here but folks you might wanna call Armstrong advisory group and receive their 2017. Retirement plan distribution guide. The phone numbers toll free 800. 3934. Zeros or one that's 803934. Zeros or one. For those of you who want it right now. We can dot download the guide by going to our web site financial exchange showed dot com that's financial exchange showed dot com for the 2017. Retirement plan distribution guy. I'd securities offered to securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. Whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buyer gold locally we just make sense of leader bank a call and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency god guaranteed by the bank and may go down in value leader bank. A step ahead this is very Armstrong from the financial exchange did you know that once you turn seven Indian half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% higher rest penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&B rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guide at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Juries are for two securities America incorporated member finreg SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated your dream home is within reach with a Jumbo mortgage a loan from leader bank the Jumbo loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by a leader bank's local underwriting and processing teams for additional cost information call 8776917900. That's 8776917900. Or visit leader bank dot com member FDIC equal housing lender and MLS number 44950. Subject current approval leader bank a step ahead. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I'd been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out -- bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage -- this is an online product only and there's no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay logon to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new east savings account that has a one point 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. And me. This is the financial exchange with the very Armstrong and show Oksana. You're exclusive look at business and financial news affecting your day you. So leave your world stay informed and today about economic and market trends plus give breaking business news every day. And now the financial exchange with the very Armstrong and chunks. Investors. Are quite pleased with the results of the weekend hurricane. Might say to yourself how can that be well the expectation. Was that this hurricane. Irma was gonna be much worse than what we in fact experience I everybody's buried truck with you here on Monday. Where you know the Dow is up 212 points quite unexpected. It is the in my prop from my will sit and. And last week was the fourth we got a five that we had seen 88 decline in the markets and good to see you know a decent Monday start here. Every sector in positive territory today were being led by financials which are about one point 71 point 17%. And the biggest financial stocks that are upper what we call the reinsurance companies the companies. That back up the insurance companies when they lay off risk those companies up anywhere from seven to 15%. Among the biggest. Winners to outside news is texting to watch what happens here and a you know these the building boom. That has occurred in Florida as you know there is tremendous I mean Florida's been one of the fastest growing accelerates in terms of population. Probably what 4050 years. Ever since the advent of modern day air conditioning. Yemen that it's been as the single biggest change that that's occurred that's allowed the population in the country to push. To the south south and if you look at the the percent change in Florida's populations the fifth fastest growing state over the last six years as well the only ones in front of it. Colorado you talked Texas North Dakota. Tampa Bay. Population has increased 12%. Since 2010. And 50%. Of the population. Lives on ground that is less than ten feet above sea level this according to the Karen Clark report so. They dodged the bullet this week in Tampa didn't break as I think the surge is ended up being what five to eight feet. Yet it's if you'd gotten into that twelve to 154 range. You would've had parts of that city that end up being completely cut off from the rest of that the surrounding area. It's it's. That's that's why I think. Insurance companies are breathing a sigh of relief it does beg the question which was our poll question today. And I'd be curious to see how people responded. There's a lot of emergency money. That's gonna go to Texas and go to Florida as it did when we had the problems with Katrina. And we had problems with scene. Should emergency funds when they're made available from the federal government whether it's to the Virgin Islands Florida Texas New Jersey Connecticut. Should those emergency funds be a gift or should they be you lol that's our poll question today. You can participate by going to our web site financial exchange showed dot com. Should those emergency funds via gift or vote. It's a lot of people they're kind of quiet about it. But they're saying to themselves you know imagine you live in an you live in Portland me. How do you feel about right Chuck Yeager as your federal tax dollars right. For emergency funds if you live in Manchester, New Hampshire RD field if you live in western livid Boston. A Boston doesn't get a lot of emergency funding. So what the results of the poll show 80%. Of our audience think that those funds should be alone. That doesn't make any sense to me. Well if you could vote on our website go to financial exchange showed up we'll see if the polls changing its seven to five now that. 75% of our listeners think that those monies should be able it has to be paid so what's what's the thought process behind making it'll. Big part of it. Is that fact that you look at those two states Florida. And Texas had very relaxed building code or does not ever since Andrew. Yeah true ever since Andrew building codes been pretty tighten state still build houses ten feet above fuel. They are we still do the masters still. You know we have been down South Shore might be about how often those towns flawed but are we building their actively now. Oh yeah are you kidding and how about like the Plymouth the ninety Oakley. Exits which is an example likes to twit floods any time there's. Anything that comes through here now marshaled through like I got that yeah I mean both the right now again you go like three inches of rain in the towns underwater pretty much and so I look at it and I say look I I they're not one of those communities suffers from wanting. Your federal tax dollars are going to close and Lotta people I can tell you suggest in the Massachusetts secede from Bentley well I mean it's like part of the bargain that we have is that we are like the reason that we have Jean produced from Florida is because were all one country and so we in the northeast enjoy the benefits. Of not having to pay import taxes they do. Like this is really a bargain that we strike I don't know a lot of people don't make it two senators from from Arizona voters gates that money. And I think that's doll Ted Cruz voted against it when the money was Golan two majors and I thought that was dumb to. Like this is what happens when you have disasters like you help each other out you do help each other but he I just the you you how it it's it's a fair question to ask should that money be alone should be what it is questioned your taxes go up. When they give this relief money. Yeah you know that while you get less we we get less for our money where if our rates don't go according mean what what what don't you know what here's what's gonna happen. Is. The city of Worcester is gonna wanna build. A new highway here in new hospital in new school. And they're gonna apply for federal money in the isn't old this is on top of what's already been appropriated is it's still money it's less available. To community it's not that's not how it works. Think this is SA that separate appropriation whether it how it works or not that's the perception. Well that's a crappy perception that is that's not how works the money that is being appropriated here is not being pulled from anywhere else in the budget there is no office. In addition to that there's no additional taxes that you were I have to pay in order to pay for this well if we didn't what are we gonna spend. Hundred billion. There was a ballpark and we do something else with that hundred billion dollars I don't know we're asking for big infrastructure project now all of a sudden we're spending a hundred billion dollars and people are saying all you can't send it down to tightly. I just I don't understand what do you want the vase the thing people want is to wire wheat popular eating areas that are clearly. You know subjected to a lot of natural disasters and this is what I've said the whole time is you say look if you want to have any funding coming again you have to have strict building codes in order to make sure that you were providing the basic level protection required that we don't have to send as much. I think that is very reasonable to do so but if you say hey this is a loan you're gonna have to pay this money back and we'll who asked to pay back the people who live their now. The people who of their five years from now who pays it back. If let's say that your home wasn't destroyed in Texas are you one hooked him up. Lot of people calling saying hey it a lot of people from other states checkers and we want it is alone and we won Texas and Florida to have a 5% income tax until that monies paid back doesn't make. Any sense at all lot of people feel differently. But what's the logic behind it. Logic it is your Billy just like New Orleans your building houses in areas that you know. Full well which is why you need to update code and by the way. The legislature down there has done nothing to update Deco thing. Legal and league. But this is what I'm saying. Well if they'd done you'll make it alone like the person who's sitting there you make it a little they're more likely be the code. If they if they if they ask why it's already been to it's already been done if they get a gift if they get city get a hundred a hundred billion dollar gift this year. What's to stop what why should they change the code they just got a hundred billion dollars you're sings like it's again it's it's not a gift this what is it. It's its funds to rebuild the city and lake have you ever had something that like you own destroy it. Imagine imagine every home destroyed had insurance for the magic yet you're home destroyed and someone says okay we're gonna rebuild all the roads and rebuild all the infrastructure. But by the way in addition having to pay for all like your home and everything Urals are gonna have to start paying us a whole bunch of money in order rebuild this. Look I'm just telling you how people feel in and there's a sentiment. Especially appear in the north where we don't get these we don't these naturally do have you seen did you see sandy. And I went into New Jersey didn't deny that the northeast. Quite. But how much when was the last time than any of the New England states that significant. Money from the thing I know that's why a SeaWorld lucky that we don't have to deal with this crap. Hopefully it'll be itching to see a couple weeks if all we're I just I find it hard to try to make this. It again these are people who have lost everything. You're you're getting people to vote your way now only 42% think it should be gift in 57% of listeners think he should be alone. So you're you're winning your. More on let's do another segment on this later if you're out of work insurance inspector. Have we got a job for you they are short. Insurance inspectors both in Texas and enforce bill why you win you up. And you could have. Four weeks six weeks worth the work doing insurance inspector it's not easy work. Yet it it it's not easy work in a particular one of the biggest problems trying to find people. Who were qualified to do this work simply because. You do have to have a background in this field in order to be able to make accurate assessments because if you walk into a home down in Houston and you say. Well you know they might be able to rebuild this place that all this and six months later there's a whole bunch of more than you do realize because you didn't know what to look for. All of a sudden the companies on the hook for more dollars than they would have been beaten up front and so. They are looking for people to go down the other looking for licensed insurance adjusters to go down. And start visiting these heavily damaged areas. And you're expecting to see billions of dollars in claims paid out probably yet the million. You do it's not something where you and I can go down there and say yeah that house looks like you can live and he'll be fine. They know how to walk through a house and they can tell. T lot of damage done to electrical system BHD since the speech BAC citizen shot they know the approximate cost you have to be able to assess that damage and can't do with a drone. No it's the the the walk throughs you can't a lot of the outdoor damaged is drone base now you're starting to see more of that. As insurance companies abuse drone technology to to try to lower their own cost. But in terms the walkers you have to still do it you know person by person house hopes. Did you know. That private jet owners. Are not paying their fair share of tax president trump talked about this earlier this year will be joined in the next segment. By Alan Levin. From Bloomberg to talk about private jets and how they are circumventing. The proper payment of taxes that's next from the financial exchange radio network. Markets continue to fluctuate but we've John you covered get your daily update on what's hot and what's not from Mike Armstrong every morning at 1030 boldly on the financial exchange radio live. -- hi this is -- strong with an important message for you and your family if you had a successful career and haven't yet taken the time playing for your future now's the time to make that call -- and -- and senior partner -- -- have been helping families -- with their state plans for more than thirty years and he's got a brand new -- out this -- called back to the basics it will help you learn about the bare necessities needed to -- -- -- plan but will also educate -- on important items like how to avoid probate and passing your assets along to your family -- -- -- -- right now -- 8668485699. And ask for your free guide today that's 8668485699. You can also download the -- right now by visiting them online -- legal exchange showed dot com proper estate planning is critically important to a safe and relaxing retirement so don't -- get this free -- today protect your assets and enjoy your -- years 8668485699. Or download it right now at legal exchange showed dot com. If you're in the market for a small business loan you need to call leader bank if your small business looking to expand or improve your infrastructure you need to take advantage of this great deal from leader bank for a limited time your business can get an SBA loan of three point 99 annual percentage rate with no closing costs on loans of up to 150000. Dollars and that rate is locked for four years you need to have a credit rating of 700 million give you an answer within ten days of receiving your completed application. This is the number you need to call 8776917900. That's 8776917900. Take advantage of this great offer from leader bank a four year fixed rate loan of three point 99 annual percentage rate with no closing costs on loans of up to 150000. Dollars and you'll hear from them within ten days of receiving your application 8776917900. Call right now 8776917900. Member FDIC. This is very Armstrong from the financial exchange did you know that once you turn seventy -- half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% IRS penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&B rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guy at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Securities are for two securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are. Unaffiliated hi this is very Armstrong and I've told you for years about my relationship with leader bank I'd been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out -- bank is offering in east savings account providing free online banking -- -- one point 15%. Annual percentage -- this is an online product only and there's no minimum balance required so log -- to leader bank dot com and sign up today this rate may change without notice and don't delay logon to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new. 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now that's leader bank dot com leader bank a step ahead. The financial exchanges all over New England to go to financial exchange showed dot com and search for the station closest to you this is the financial exchange radio network. You learn something new every day football champions and CEOs the light side step taxes. With private jets were joined by Alan Levin from Bloomberg to talk about the story he wrote it was posted actually last week I don't today Allen. Good good so power commercial air passengers. Subsidizing. Private jet travel. Wolf so unlike most countries around the world which urges users see. For flying. The US has a patchwork of different taxes. And a private plane only pays for the fuel tax. And we did a little. Model. Ten. Different types of flights ranging from cross country too little short hops. In it turns out to. That debt. Fuel tax alone only amounts to about seven. Percent of what time. Typical airliner would pay almost equivalent grow. So let's use in his example. On flying American Airlines verse it is Los Angeles verses. Taking a private jet to Los Angeles the private jets gonna have a lot less. To air attacks it is is that we caught an air attack to a context we call. With a short answer is yes so an airliner is subject to read different types of taxes one is an excise tax on the cost the ticket. Then there's surtax of about. I think it's port 25 Ford mostly five cents per passenger. And then there's a small. Fuel tax it's much less than the business jet tax. It and so. Wrote a cross country route like that obviously there's a lot of variables to how many passengers on board the flight and all that but. We that it might model well it looks like. Typical cross country flight would pay about you know. Three to 5000 dollars. In and I say the flight paying but it's actually the passengers. Pitting the vast majority of that money. And whereas Oakland. I'm sorry it's those three to 5000 on a jetliner. And how much is it in a private plane. And that very much depends on the type of private plane mutate bug. If you take one of the highest. And perfect jets we looked at the bombard the eight global 6000 which actually capable of flying to Europe and many long distance locations. That would. Yield about 500 dollars. But you know if you took a smaller jets and Britain stopped it refueled and Denver something like that you know would probably be the range of 20400. Dollars. So beauty could end and and some of the routes where we had really small fuel efficient private jets in the model. It was as little as you know to work 3% of what. What are the big ones play you pay like FedEx and UPS and they considered private jets are today painful vote on taxes. You know I did not look at the cargo carriers because they have a different tacks on the cargo on board. But they still end up paying for more than the president check out. So how does this work in other countries like Canada president trump earlier this year referenced the Canadian system for air traffic control. And an airline regulation how does that work up there. Well that's a very interesting question I think looking at that explains why we have such a bitter battle. At the moment over whether to put these federal aviation administration's air traffic division into the hands of a private corporation. Because that's what you have in Canada to nonprofit corporation. In the charging user C. In. It's it's based on weight. So private jet would pay. Be between 13 and one half of what typical jetliner would pay. And and that's probably fair you know because they fly into airports that are less busy it require less. Air traffic infrastructure right. But. That difference is huge between here and where it's ten or fifteen to one there it's. To the water may be freed on. And the other point that's worth making is if you look what a typical airliner pays fair. It's half for less than half. In terms of the C compared to what the seas are. On an airliner in the US and so that's I think it helps explain why the airlines are so adamantly in favor of going to a private system. And right now who is bill Shuster and how did he kill it changes to this system that might have happened this year because the president. I remember like it was yesterday he was talking about this he wanted to change this in 2017. Well he and Schuster are still on the same page in the sense that they both want a an air traffic system run by a private nonprofit corporations and they believe little battle with the air traffic innovation and and a lot of system to be more fleet footed it's better. But. For years. Various. People dating back to the Clinton administration have been trying to to do that go to such a scheme and it's. Oh it's been blocked by the president aviation sloppy. Bill Shuster. He's chairman of the house transportation and infrastructure committee. He floated this idea of starting about two years ago. He hasn't been able to get any traction at least a full. Quote in the house yet. But he he decided that he would exempt the private aviation industry for many text changes. In an attempt to. And helped get some of their support. And now interestingly it has not paid off. The price at the aviation world is just as adamantly opposed to that was before. Right Allan thank you very much for your time we appreciate it. Oh Michael Allen eleven from Bloomberg. Do you feel about the year that Tom Brady in the boys who think they should be very painful freight in terms of their taxes because that was the example. The patriots have their own jet now. Yeah eight and in clearly what you see. Is that the average commercial flight as we just discussed pays in. Awful lot more to do hunter's pregnancy in terms trying to maintain the system because that's how the FAA's funding effectively. And so the problem that you get is that again these new high performance private aircraft make up 10% of the overall flight patterns in the US. They only pay about point 7% of the revenues that they're clearly not paying in accordance with what they're using. So I do think it's something that needs to be looked at but obviously. In some of these cases these private business jets. They are servicing areas of the country. That are not covered by the major carriers are you talk but some of the smaller flights that are out there. And the question is how do you differentiate between someone flying a small Cessna and some appliance you know a gulfstream. We'll be right back from the financial exchange radio network. You've got Barry Armstrong. Financial exchange shall look I mean Cilic in new radio network. Whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buy your gold locally it just makes sense give leader banker called and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency not guaranteed by the bank and may go down in value leader back. A step ahead this is very Armstrong from the financial exchange did you know that once you turn seventy in half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% IRS penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution -- at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. 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But don't tell Berrian jogging the financial exchanges alive every day on FaceBook and YouTube this is the financial exchange radio network. Last week we learned that Boston is in the running to serve as the location of Amazon's second headquarters were asking trivia questions today. About Amazon. In what year did Jeff Bezos sell his first book. On Amazon.com. Our text number is 68680. And you do remember chuck. That's what you bought your body physical book on Amazon still not physical books and on and on discounted basis yeah I I I still don't by the ebooks I go all this global you do down idea I like the books anyway. What you did that happen in what year did Jeff Bezos sell his first book on Amazon.com. You know the answer that question. Texas at 68681. Listener. With the correct answer wins a 25 dollar gas card. US high schools picking up more international flavor. The number of international students enrolled. And US high schools more than doubled from the year 2004. To the year 2016. Reaching 81981. Students. Yeah and and what you see is a lot of these students tend to stick around the US afterwards and go to college in the US as well then and in particular. What you're seeing is a pretty strong increase. In a lot of these high schools with students coming from China okay. Chinese high school students in terms of the percentage of foreign students they make up about 42% of international students of China is really sending the bulk of these international students over to the US. The other countries that are at the top of the list are South Korea and Vietnam Mexico. Japan and Canada. Remember when my kids stayed two kids that went to prep school. And there are a lot of Asian kids that that was ten or fifteen years ago cells like these even more now. Lightly indicated it it sounds like there with a double. In a lot of chuck are going to public schools that's the big thing that you're starting to see now is more international students going to public high schools is opposed to just the private once been and there's also a special obesity F one visa. That extends for twelve months for public schools Seattle to renew that there. Every year and they also have to pay full tuition for those public schools as well I question that. Because I saw there's just one school in the citadel they're paying tuition somewhere between three and 101000 dollars. But then I look in our town. Right if you looked at Yorktown detonate where you live view you would see that the cost per student is like fifteen to 20000 dollars and they're charging three to 101000 were in the northeast. So is it that much more you know we live if if you go dancer if you take a look at lake property taxes down in Mississippi or something like that. The average property taxes in Mississippi like 500 dollars a year and that's because they don't put any money in its data don't put the same amount of dedication. Shows that does I mean that's that is very clearly what it is now interest in. US solar bracing for the first decline. As rooftop demand slumps the so when we do we we. It's a war on every rooftop that we already could now it's on the on the downside it's not so much. And every one it's just that a lot of states are starting to reached a lot of the U levels that they targeted in terms of rooftop solar expansion. And you're also seeing that. There is so much chatter that Donald Trump may put tariffs on imported solar panels which is near scared some people way a little bit so. As far as rooftop solar goes you are seeing a year over year decline. But when you take a look at utility scale solar so the big solar farms and so forth those are actually up 17%. This year you're talking about the ones that have literally. 1100. Of thousands of panels in their bigger pails to exactly error of these folks we've seen them because if you drive. On the highway. There's a pretty good chance you've driven by what those stellar fields are yet you seem by the exits now and cervical reliefs and so forth but I they're building like. Really big ones like it may take up. Hundreds of acres yet you're you're seeing some pretty huge loans especially down in the southeast and southwest that are going up right now the middle of the country Oklahoma Texas still has largely wind power country just because of all of the oh win that comes through there on a consistent basis that's more wind turbines that are going up there. But the southwest in the southeast you're absolutely seeing a big increase in utilities. Gail solar plants that are going up. Leader bank's online ranked collection tool called Z rent is a great service for landlords and allows them to collect. Tenant rent payments electronically. And it's the red dot net without the need to collect checks. Most landlords that I know use a local neighborhood bank to do their business and now leader bank is making this unique program. Available to those banks so they can offer to you the customer if your landlord in your shifted and having your bank. Acquire busy ray technology. Tell them to call this does he rent team at 8776917. B 900 that's 8776917900. Or visit zero rent dot net. Stop chasing down late payments and running to the bank to make your deposits. Get your bank to add secret to its list of offerings. Visit zero rent dot net or call. 8776917900. For more information. That's 8776917900. Or Z rent dot net. Tesla. Miraculously. Boosted. The range for some of their electric vehicles in for. Yet this is on the the cheaper versions of the model S and model ax would Tesla did on these. Is they had limited the battery to only going down to about 20% left they've cut off the last 20% of the battery power and in doing so they were able to save people about 3000 dollars on the purchase price so for people who had these models that live down in South Florida. What they did is they said look for the next couple weeks we're gonna unlock that extra battery just because we know we need to get out here as quickly as possible we know we need the range. And so. For anyone who had these vehicles that were scaled down tassel said look. Free of charge Renault would use this extra range for the next couple weeks once things go back to normal we'll take it away again but you've got it for now. And really the logic behind that folks if you're not. Familiar with how this technology works is. If you've consistently drain a 100% of the power out your battery believe these bit better in the east tussle cars death. Bill the range what happens is. The the batteries only will recharge about a thousand times. If you limit your battery recharge to seventy to 80%. You basically have an unlimited the batteries last a lot longer than that chastised the car yet. But what they did was to help people to get out of the state. Was just unlock patent you know in some instances he gave people an extra thirty to sixty miles yes it's not true doubling the range but it's as you said yes 304050. Miles and this is gonna remain unlocked until September 16 so about a week or so total is how long this is going to remain unlocked connect. Let's see what should be done a lot of her in her stuff already. One thing they are gonna do for. This is a proposal. If you're hurting victim you're gonna be allowed to. Take money out of your 401K plan penalty free and. And I don't think of this as mixed on that I know I have the same thought when I saw because right now if you wanted to pull money out of your 41 K plan and you're under age 59 half. Yet pay 10% penalty or be take a loan out you have to pay interest on the loan. And so what Kevin Brady is putting force is something that waives the interest on loans and also allows people to tap the money early without the penalty. And I look at I say well I get that this is you know for when Kaczur where most people have most of their money saved it's the average family doesn't have a whole lot and savings. They create some perverse incentives to take this money from retirement to pay for something now I mean night. I get that people have to do but you don't wanna make it too easy on the other hand I'm a torn by now I understand and I and I feel very similar. Equifax sure dodged the ball with their timing in the I don't know this this is a big problem. The so over the weekend when you know the Equifax at a data breach. And they said what 73% of American adults it's like for pretty much all Americans with a credit card or some kind of credit line had their data exposed like you go on their website and you put in in Korean. You could make up a fake name. And that in and put zeroes in its like putting it into a magic eight ball it's like it sometimes putting in something shows up the next time putting in something doesn't show up. What I've done I've put a full credit freeze on all my accounts I had to do that so if you go to all of the the three. Credit bureau site so Experian and Trans Union and Equifax is from there's a credit freeze that you can put in and so I've put a credit freeze on all new credited this points did you do that with your wife as well or just yours just mind to this point enough time to do hers yet but will be doing -- tonight how long's it take about ten minutes. Ten minutes her agency here on five minutes per agency. Well this week it's quick and what it does is any time that someone tries to release any new credit the agency will deny access to the credit report so they won't be able to open up any new credit. If you have to unlock it for yourself it's a process you go through as well they give European that you can put in but you can still use your credit cards your credit cards in any any equity lines or anything that you have on your house he can still use those but you won't be able to open up any new credit until you go in and manually unlock credit for so if you wanted to buy new car and borrow money you do that you'd have to go unlock it about a week before hand all three all three. Folks that might be something and it considered doing just went to the web sites you go to the web sites and you'll be able to do it there. On if if you have an official police report saying that your info was stolen you know they'll do it for free or otherwise and they charge in Massachusetts it's five dollars per reach one who'll now okay. And I don't know the laws in different states about what the cost are so at the cost does vary on different states. But I would highly recommend doing this especially if you don't need any new credit anytime soon. It's a lot easier and cheaper to do the credit freeze up front than to try to unwind all the damage down the road up next we'll be joined by Dan Ackerman you get a preview. Of the next Apple iPhone what's gonna look like what's gonna do. Danced Italy you know that more from the financial exchange radio network. The financial exchange with Barry and chuck is alive on FaceBook and YouTube every morning beginning at ten and this is the financial exchange radio network. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage yield this is an online product only and there is no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay logon to leader bank dot com get all the information about this great offer and sign up today before the rates change get. Free online banking with leader banks in new east savings account that has a one point 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. Security suffered through securities America and members finreg SIPC and advisory services arbiters securities America advisors think Gary Armstrong representatives Armstrong advisory group in the securities America companies are unaffiliated. Vote on our daily poll question had financial exchange showed dot com while you're there buyer of the media player and watch the show while you work. This case the financial exchange radio network. In July of 1995. Jeff Bezos is companies began service and sold its first book on Amazon.com. Do we notable ones yes we do the book was Douglas Hoff starters. Food concepts and creative analogies computer models of the fundamental mechanisms of thought what's a good one. Yeah one of my favorites I read that Everett and before I go to bed because he puts me to sleep. The winner on that question was Robert from Natick Roberts taking on the 25 dollar gas card to gulf and trivia today is brought to you. By leader bank cult leader bank today at 8776917900. Asked about their new. With one point 15%. Annual percentage yield that's 877. 691790. Is either for leader bank member FDIC. No minimum balance bees may reduce earnings and rate subject to change without notice in May change after an account is opened. Dan Ackerman from CNET is with us now to get us up to speed on tomorrow's big announcement from apple. Dan thank you for joining us. Here Dan. I know that a lot got leaked over the weekend but a lot of our listeners might not be quite in tune. With what came out what are what are we expecting to hear about the the new iPhone that I guess can be called the iPhone acts is that right. We're looking like right now we have a lot of guessing games about the names and I let go where the over the indicated he'd have the official name for the phones. You know you're gonna hear iPhone eight and eight plucked from that they'll they'll. The food you have now the exit in the just like you upgraded. And that's special blown they're gonna call the iPhone leader expert and you know with the with the Romans Google X there. Measles they had made those they accept that that be a special kind of a tenth anniversary on because this would be an anniversary of the iPhone. The got that all read what the entire front basis read more babble but for little cut out for the it could have been oh split screen which is what they have to type this means that you find it from the higher and fans and from there. What does it do we is it gonna have anything groundbreaking or is it yet another iteration with out anything transformative. That's kind of know what where we've ended up neatly BP lacked Hogan's bold design is only so much you can do with this. Lab of collapse and then also what what we think it's gonna have to campus and out is changing the spark looked getting rid of that home button. And noble but on the front just all screen top to bottom. Although at least some of the other phones and Samsung and LG in other companies have that now. And a new kind of facial recognition to login and possibly replacing the fingerprint log in because if you get the go button. We deepen the fingerprint reader. Goes for you just hope that your state in which he would go OK your view and then locking it. Looking at this event it's gonna be the first public event in the the new apple campus the big spaceship out there in Cupertino. Left we pretty excited just about had out there are you gonna be there. I'm not familiar person but hold on to my team members are I get in this new auditorium at the new apple campus. It's actually underground. And it but it's not a huge state but I think it was going to be jam packed in the air and the only covered the big demo room off to the side where people can eat and talk to all the new products if you know the iphones and then anything else they announced also. What is the cost of this device going to be you know there's three different generations are can you walk us through the potential pricing on those different models. In the standard iPhone made the ones that look and feel like the phone that we have now will probably stayed about the same rights and the underdog is now. But everyone was saying that this is your phone DD Axl or ten bottle. Might be one of the first films to break that thousand dollar price barrier and get up at 999 which we could pretty shocking. Because we need to pay 200 dollars to be told to me at least subsidized bold plan. They don't have those any more but still get epic album but is is not today and they will probably elders and it all on installments to work. Don't care for the rest of our lives pretty much right. Orbital arbitrator in the back out there aren't exactly. I know that this event is happening tomorrow what's the typical lag time between the announcement and when the phone is finally available free to take home. Usually they announced the phone and then within a week after that you could pre order it and they usually try to strip the body of the above but he once again they're saying. The regular more traditional phones pot would be available very quickly. This new bands here the ex model. It apparently had some production problems with the need not have a lot of them that they may be double what delayed and number two in very very short supply. What other op products from apple I know that the that the phone is the big when they're announcing here but they usually piggyback a couple other announcements in. What what are your expectations there. The cubic once we are expecting our updated apple watts. It will probably look and feel much like the last two apple watches but have its own. LTE connection with which basically means it's it's itself voted doesn't need to fold the tegra two in order taxes paid out that's big and. Yeah in that especially if you want a good shot you're gonna handle it speakerphone with you just wanna Wear the watch. And that the new apple TV which is a very popular product for streaming alternative movies TV services. That will -- for his support which support because almost every TV you find out even budget models are four KTB. Very good day and we appreciate the time and thank you for all the info we were catch up with the soon. That's Dan Ackerman from CNET talking about Apple's announcement tomorrow call me skeptical. But the fact that they're gonna be in short supply. Is part of the plane. I grew her right the NB shorts and we thank. You remember you can't get one unless you pay fourteen but I'll bet you fully loaded. That full. The eat when you get all the increased memory and having dinner that's going to be like thirteen 14100 dollar phone I agree. And it and its us well you don't lose you'd tell you guys are married. Is that you know when you're single you would have had to trying to get one of these we'll Howard Palestinian you know show up chairs traffic chaos and the ball you know you gotta you flask that thing up there they came baby again not vote next to your digits. What do I want to put your name in there. Who is the market for that. The ghetto like way too much about the apple geeks yes if I eat the apple geeks out and they'll buy it ultimately did this thing. You know we're all laughing about it now align no. And Apple's it'll apple is the bank they're gonna kill it in terms so Maria device if it really it has to be a good full can't be jump. It can't be a bomb phone he can't he can't blow up on every bump on. The Dow was up 237. Points have a great rally today despite. Harvey and Irina I think the fact that I read was not as bad as expected has led the dowdy increased by Elmore more than 1%. Thanks for tuning into the financial exchange radio net.