March 8, 2024

How to recover from a big financial mistake

In this week's episode, Dame and Pete talk about how to recover from a bad financial mistake.

Episode Transcript

Peter Dunn: [00:00:00] Another week without Kristen, star of Kristen and Co. It's just Ann Co here today. Damian Dunn joins me as always. Hello, Damian. Hello, Pete. Kind of weird when the namesake of the show, Kristen last week she was working, this week she's not working, neither time she could avail herself to us.

Damian Dunn: She's a diva, I think, is what it's turning

Peter Dunn: into.

I would never say that aloud.

Damian Dunn: Nobody's listening, so it's okay. I

Peter Dunn: would never. That is actually the best point here. Dame, how are you? I'm well. How are you? I am so excited to possibly re employ humor, as Al Michaels would say back into the show this week after being more serious than I care to be. I've been, I've been less serious at funerals than I was last week on the show.

Damian Dunn: It was a little off putting, I think for a lot of folks, I would imagine there was a lot of dial shuffling on the [00:01:00] radio show. Like, is this right?

Peter Dunn: What happened? Hello, Sarah Jameson, Andy. Hello. Hello. Hello. Yeah. Last week's show was interesting. We'll have an update when we go to air on radio here a little bit about it today.

Lots of good feedback from the show. Morning, Jason. Good to be with you Dame one more week with just you and me. And then you Vamonos right for a day.

Damian Dunn: Yeah. Well Well, you're not on the show next week. I will not be on next week. Then I will be back the week after that. And then I will be gone the week after that.

Peter Dunn: So next week will be Kristen and Pete. And then the week after that, who knows? No one cares. Hi, everybody. Welcome to your nightmare. Today's show is You know, it's going to be about a couple of things. Number one, I've really been obsessed. I might write about it this weekend for my column next week on this idea of, okay, so you made a giant financial mistake, but let's quit talking about how do you prevent a financial mistake?

What do you do when you're in a deep, deep, deep mistake? And then like, how do you [00:02:00] fix that mistake? You can't reverse it, but what can you do to change it? So we're going to talk about that today. We're going to talk about what was it, how to find a financial advisor. I mean, that feels like something we've covered a million times, but we're sort of taking on a slightly different angle, right?

Hello, Rochelle.

Damian Dunn: Yes, a slightly different angle and then what that might look like based on your situation.

Peter Dunn: Yeah. Damn, you made a big announcement on LinkedIn this week. Your, your, your role change here. You're my line. Very exciting news.

Damian Dunn: Yes, absolutely. Get to go back and work with work with the people.

I make make some change in financial lives on a direct one on one basis. So looking forward to getting back to that. I have been getting back to that. It's been fantastic. I, I,

Peter Dunn: I feel you there. It has been so long since I've worked one on one with individuals on a very serious basis with their finances that I miss it too.

And I know for years you ran the team of people who did that here. And then you recently transitioned back to actually helping people directly [00:03:00] as opposed to indirectly. And how has life now?

Damian Dunn: Fits, fits my speed much, much better more comfortable with that and sleep and sleep in a

Peter Dunn: while.

And now, and now Kristen of Kristen and Co. fame is running the squad.

Damian Dunn: Yeah. Doing a way better job than I probably ever did if we're all being perfectly honest and this surprises exactly nobody.

Peter Dunn: All right. Let's do the show. Cool. Let's do the show. Hold on, Andy, ask if she's going to have to log in for the first time to decide to hear James new position, principal financial guide, right?

That's the position. And Kristen's title is director advice and education advice of education. Yeah, that's right. Yeah, I think that's right. And I'm still. Pete, I'm the planner.

Damian Dunn: Mr. Wait, does that mean Mrs. Advice has to get a new title?

Peter Dunn: So Dame, I was emceeing a charity event [00:04:00] on Sunday morning in central Indiana, and it was a brunch to raise a lot of money for, for a lot of, for, for Alzheimer's association.

And, and, and so my job is I'm a trained monkey. I go up there. I try to raise money and. Tell jokes off the cuff and in those sorts of things. I had some good ones. Others of them fell a little flat. But I have to tell you, and I don't know how to I have to tell you the awkwardness that was the moment.

And I, I can't be too specific here because I know people are listening that we're there. I don't know how to say this. Oh, I'm going to get, okay, here we go. Have I told you this yet?

Damian Dunn: No, I we're all waiting

Peter Dunn: on you. I don't know how to say this. So i'm gonna just like Tread lightly. One of the most prominent CEOs in the world was there.[00:05:00]

Do we get to it? No, we're not doing that. Not doing that. Most prominent CEOs in the world is there sitting the table one, which is like from, from, from, I was gonna say to me to you, but that's two and a half hours. But from, from, from me to the camera, like 15 feet. Okay. I don't get particularly intimidated or starstruck or anything like that, but there's something about me being this trained monkey up on stage, telling Jeff getting yuck.

Yeah. Cause of that. And there's this rather serious person, notable, serious person, like right there. And I couldn't help, but notice. How little he enjoyed me.

And I don't, I don't blame him, but man, I had a real dance for your dinner sort of feel to it. Like I [00:06:00] was like, I'm a, I'm a. Business professional in some, in some respects. Like behind the facade of the idiot clown here. I I've done a thing or two, but I had a, it was, it was a humbling. It was unsettling. I have to say.

Damian Dunn: Just didn't didn't ingratiate themselves for our Midwest sensibilities.

Peter Dunn: Well, I don't know, I don't want to go that far per se, but maybe they just didn't enjoy it. Or as, as someone told me it's possible that someone actually enjoys you, they just don't tell their face. And, and that could have also been the thing.

Damian Dunn: How how many times did this person potentially check their phone while you were on stage? They

Peter Dunn: didn't, I don't believe they did well, man, but then I kept finding myself going back from an icon perspective, like right back to this person. So at some point he might be telling the story today, like there was this creepy bald man, just telling dumb jokes, just kept staring at me[00:07:00]

anyway, enough of that, let's do a show. No cares, literally. No one cares. I've told the story to people who care about me and they didn't seem to care that. So why would anyone here care about that as well? Okay, Dan, we'll start with the update. Then we'll go into the financial advisor thing and let's, can we not do like, Oh, do due diligence.

We're talking about fees. And like minimums and things like that, right?

Damian Dunn: Yeah, yeah, yeah. I like the, the the different compensation options that you may be presented with things like that. It'll become obvious. I hope

Peter Dunn: three, two this week on the Pete, the planner show, we answer your money questions. Here's how the show works. You email us, ask Pete at Pete, the planner. com. That's asked Peter, Pete, the planner. com. Here's what will happen. No, we'll answer your email on the air. Another name for this show is Kristen and co are.

A beloved co host, Kristen Alenius is not here again this week. That's two [00:08:00] weeks in a row. If you had a Kristen has gone punch card, you're almost due for a free absence. Damian, John Don, Joe, Damian Jones, Damian Jones, Damian Dunn. Hello, Damian Jones.

Damian Dunn: Sound like I'm a weak side linebacker for a football

Peter Dunn: team.

I think it sounds like a failed British pop artist. Yeah, that's good to Dame last week on the show the, in a very special pizza planner show we talked about one of the, I believe be one of the most notable cases of financial fraud and central Indiana going forward. And that was the case of Alexander Joyce, rejoiced financial, who has been accused of stealing 2.

6 million of clients money. And within, An hour, less than an hour of taking receipt of those funds under false pretense bought a 2 million mansion. And that was last week's show. And within minutes of our show being [00:09:00] recorded minutes of us saying those words, a restraining order was granted by the government.

restraining the use of funds. All assets were frozen for Rejoice Financial, Rejoice Wealth Management, and to some degree, Alexander Joyce himself. Other developments in the case include that an eviction filing was Oh, I don't know, filed yesterday, which would have been the 7th of March to evict Rejoice Financial from their business location.

And there's a bit of a snafu as it relates to issuing subpoenas in this case, or, or, or, I don't get it. This is where I don't know the court language. But one of the parties, Joel Parity says he just learned of the charges. Literally yesterday which seems a little bit odd, but it's not for me to judge.

So those are the updates on the case. We'll update you as they go forward. The show will not become obsessed with this case. However, I think it's a great example of what [00:10:00] happens when you don't do your research on the people you invest with. Dane, do you have anything to say about that before we move on?

Can I ask you a quick question?

Damian Dunn: Please do. If you were a fine upstanding. I'm not. Financial advisor. Okay. In central indiana. Following this story. Sure. Knowing that there are likely other clients at. At the Royce Financial, Rejoice, Rejoice Financial would you, how I say you, you genuinely want to help those people get money away from there.

And would you feel like a bit of a, an ambulance chaser if, if you were, you just want to do the right thing? How, how would you go about trying to make people aware that you are willing to help them? Extricate themselves from that firm.

Peter Dunn: I don't know. I mean, typically there's that feeling of when you're a financial advisor and you're trying to solicit [00:11:00] business, there already is that sense of right or wrong, trying to protect people from other advisors, which that's a strange dynamic of the financial world.

There's sort of like prize fighters. They always think they're the best, but yeah, to your point, that could, that could get a little awkward. Speaking of awkward. We got an email this week about financial planning. And so we just wanted to hit that now. It's from shell, C H E L L E. Or do you think it's Shelly?

Damian Dunn: What do you think? I know someone who spells their name that way and it is Shelly. But I think it's very reasonable to say shell as well.

Peter Dunn: Dear Kristen and Co. How do you find a reputable financial planner with low fees? Thanks, Shell or Shelly. How do you find a reputable financial planner with low fees? I think Dame to, to even, what do you want to attack reputable or low fees?

Damian Dunn: Well, that's the challenge, right? I mean the, the reputable reputable thing we've, I feel like we've talked about this a little bit over the years and Shelly may be a new listener and that's certainly not the case. Her fault. Thanks for joining us. Shelly. [00:12:00] There's a number of different ways. You can potentially find a reputable financial planner.

One of the most common is just word of mouth, asking friends, family people you respect that are doing all right from themselves. Try and figure out who they're working with and see if if there's a way that you can Interview that person to help you as well. I'm not saying go and sign up for their services when you sit down.

It's a, it's a feeling out process. You've got to interview, make sure that what they are offering is what you are looking for. There are other resources online as well. There's a couple of popular, well, I say popular cause I'm a financial nerd. But websites, you can go out and type in your location and see where financial advisors are as well.

XPN and NAPFA as well are sites that you would go out and check to see who's available in your area. Doesn't guarantee they're reputable, but they are at least signed up for a fiduciary

Peter Dunn: responsibility. Before we go to low fees, let's touch, let's touch on reputable for a second, because I think sometimes [00:13:00] reputable can be interchanged inappropriately with public or notable.

And so, Here's an example if, and this is not always the case, but just because, you know, the name of a prominent financial advisor in the community in which you live, doesn't mean they're reputable. It just means they're notable. Is

Damian Dunn: that a callback to the first part of this segment?

Peter Dunn: Potentially, you know, I think it's this idea that fame, fame in itself is not a quality.

It is it's sort of a state of being, but it is not necessarily a positive quality just because it's like, you can be famous, you could be infamous. It's the same thing. One just did, you know, denotes some negativity. I would say financially, if you, if you know of a local prominent attorney or you know, of a local prominent, Chiropractor, you know, a local prominent financial advisor.

That doesn't mean they're good. It just means that they have a means to market. [00:14:00] And I say this in a deeply personal way. I'm a notable local financial entity. That doesn't mean I know what I'm doing. Right. And, and I, I don't think. The average person should look at me and say, Oh, well, he's, he's everywhere.

He, he obviously knows what he's doing. That's the wrong leap. That's the wrong leap. So I would first say when someone, when I hear reputable, separate notable, separate notable to that same point, Dan, let's say you call a big wire house the, the direct number to the local office and you say, let me talk to your number one wire house.

Your top financial planner, they're going to take you to the person that makes the most money, right? That has the most clients also doesn't make them reputable. It just makes them successful. So that's why this question is a little bit more nuanced, maybe shell or Shelly thought, because reputable and notable are very different and successful, very different.

I think the question begins with low fees. [00:15:00] And how can you understand the dynamics of the industry? Because Damon, many instances, and this has changed a little bit, a beginning investor can't actually get access to the most reputable people because the most reputable people have earned the right to work with higher net worth people and not accept lower fees for beginning

Damian Dunn: investors.

This is a huge challenge because this was the exact example I was thinking of. If I'm you know, young and I just finally scratched together my first You know, five, 10, 000. And I want to either, you know, put it into a Roth IRA or a non qualified account, my options are going to be pretty darn limited with the, with the fee structures that I am presented at this point, maybe you can go out and you could potentially do it on here, but you don't, because you want to work with somebody, you're not sure on the investing side of things.

Most people aren't who charge fees, annual fees, you know, assets under management type of stuff, they're probably not going to work with somebody who's only got 10, 000 of assets to [00:16:00] their name to invest. So now you're looking at commissions or, you know, a share, you know, just some other way to try and pay those fees.

So you may be locked in to some fee structure based on the assets that you're bringing

Peter Dunn: to the table. Is it fair to say if you make, if not make it, if you have 50, 000 or less to Your current best option is likely not to have a financial advisor. Is that a little, is

Damian Dunn: that a little over the top? Yeah. I don't know if it's your best option, but it's your, probably your likely

Peter Dunn: option.

All right. We'll touch on this a little bit when we get back from the break cause Michelle slash Shelly, I'm not sure we fully answered the question, but then we're also going to talk about if you've made a giant financial mistake, like what do you do? How do you get out of it? That's next right here on the pizza show.

I'm Pete, the planner.

Yeah. Yeah. Back in the day, there was. A rough option for if you had 50, 000 or less, this is pre robo and by advising, like [00:17:00] you'd have to find someone willing to work with you. You'd have to pay a shares, which meant you have to pay a pretty hefty 5. 75 percent deposit fee, which is a lot, dude, 5. 75%. At the time, because I was involved with it and it was the way things worked was reasonable then, but now in retrospect, I'm like, gee, many Christmas.

That's absurd.

Damian Dunn: I know. I just looking at a shares, B shares, C share. I'm just trying to go through that whole matrix of some, but with, with a potential client as goodness gracious, why do I want to pay five and a quarter? Well, it's because you're not going to pay very much going forward. Oh, it was, that was an absolute

Peter Dunn: mess.

Here's the other side of this. If you have If you've only 50, 000 of S, what's dumb about that is, and dumb about me saying it that way is it's all the money in the world to you. It's not only 50, 000 to you. [00:18:00] It's literally everything you have. And so this idea that I'm like, well, you don't have that many options.

That sucks.

Damian Dunn: Yeah, I mean, I'm, I am, I'm pretty confident there's a ton of, you know, advisors at Edward Jones who would, you know, or one of the bigger houses who are just getting started, who are looking to meet people and start to build their

Peter Dunn: name. Again, as a family of amphibians have moved into northern Indiana, they've found their place in Damien's throat for two weeks in a row.


Damian Dunn: great. It's one, it's just professional. So we are professional. I, I'm sure that our advisor that you could work with you now, are they seasoned or the tenure? I mean, how much experience do they have? Probably not a ton. Probably not. That's part of the interview process. When you try and figure out who can help you with this.

Peter Dunn: Mike and Facebook live makes a point that I think. Damon, I felt very much when we were financial advisors, this is a [00:19:00] struggle for many financial advisors to he notes. And that is so true. It's like the, that was sort of the impetus of the Pete, the planner thing back in the day when it all came to a head, it's just like, how do you take people who don't have wealth that are literally trying to create wealth and then use your skills to help them while also feeding your own family?

It is. Incredibly frustrating problem and it is playing the long game at Dame to your point, like the Jones, Edward Jones advisors the good ones that they're playing the long game that, that you will be a good client someday and they can build a relationship with you while you're not.

Damian Dunn: I mean, and there are financial advisors that build businesses on this as well.

I mean, they, they go out and go after it. That's a little aggressive. They try and work with you know, Doctors that are still in medical school going through residency things like where they're not making a whole lot of money now, but they see that and they can help them structure loan repayments and all sorts of stuff.

So there's a very big business in being able to look [00:20:00] forward and see the potential that clients have as well. So do we have a

Peter Dunn: third segment?

Damian Dunn: No, we don't. We just burnt half a segment talking in between segments. Jiminy Christmas.

Peter Dunn: Where's Kristen? I know. Kristen! Is she, you think she's viewing today? I hope she's not.

She's worked. She has been way too much, way too much this week for a week off.

Damian Dunn: Yeah, I've, I've already told her she needs to reevaluate how many days she's submitted for PTO because that's not a good precedent to set.

Peter Dunn: I know. Yeah, I'll just say for what it's worth, I have not slacked her once. Okay, let's go.

Three. What's gonna happen? Two, one. Back on the Pete the Planner show. People make financial mistakes. All the time, all the time. The half of this show though, is dedicated to getting them to not make those financial mistakes. And the other half for the show is based on me trying to make jokes, but [00:21:00] sometimes people make mistakes and then they have a house they can't afford.

They bought a car. that is upside down in terms of equity and negative equity. They went on a vacation and spent too much on vacation and come back. And then there's a giant credit card bill just hanging over their head. People do. Dumb things in the moment and then they look at it with great clarity and they go, oh no, what do we do?

So this segment is dedicated to those really common situations of like, what do you do? And Dame, I, I heard a story a couple of weeks ago from an acquaintance of mine who typically paid more, they had no debt. None except their mortgage. And so they paid more on their mortgage cause it was their only debt.

They just paid a little bit more. They ended up buying a car in the car that they [00:22:00] bought the interest rate. They, they borrowed some money for to buy the car. Was three and a half, four times the interest rate on their mortgage. And so this was not in itself a mistake, but what it caused them to do is to say, okay, I had no debt.

Now I've got, I don't know, 35, 000 worth of debt at nearly 9%. How not a mistake per se, but how do I shift my strategy? That's been working for so long. To make a better decision with the new facts. And maybe that's the best way to frame this. How often do you see that people find themselves in this completely different reality with a new set of facts and then fail to shift to the new reality?


Damian Dunn: that's the big challenge. Everybody makes mistakes, whether it's a small one, a big one, frequent, infrequent, at some point you are going to make a financial mistake in your life. How comfortable are you at being uncomfortable? I [00:23:00] think is the question that you end up having to wrestle with yourself over is you already, you've realized this, whatever it is, the options that you've given Pete or anything else.

You've made a mistake. You are uncomfortable. And it's very likely that the only way out is to be uncomfortable for longer because you're going to have to make some major changes, minor in some cases, maybe major changes in some cases to extricate yourself from this. And they may not be over quickly and maybe a rather significant financial change in how you live your life on a month to month basis.

Peter Dunn: Yeah, you know, I think sometimes people will make a mistake. They'll realize it and then they'll use whatever, whatever brain capacity or sort of mental energy and fortitude to try to ignore the new reality. They're like, ah, it's not that big of a deal. It's like, no, it's okay. Yeah. This isn't great. What are we going to shift?

What, well, you know, what are we, what are we going to do? And I think there are some bad ways. [00:24:00] To solve this. And I think there are some better ways to solve it. So what I'd love to do is I'd love to list what I generally find to be the worst ways to make up for a financial mistake. The first of which is a pretty obvious one.

If you live in our world, and that is a 401k loan. If you found yourself either short on cash flow and so you want to solve it by getting rid of you know, a debt, or if you find yourself needing to fund something because of a mistake or an oversight, pulling money from your future, even though it is your money.

And you're paying interest back to yourself is a bad thing to do on, in, in most circumstances.

Damian Dunn: It's it's hard because it's so tempting and it's easy and it's not, it's not uncommon. You hear people talk about, you know, going, well, I got a 401k loan and you know, we, we hear it every day. I hear it. It's, it's not, it's not something that we are [00:25:00] immune to or immune, immune to hearing.

So the challenge that you have to do is, okay, I have to ignore the the easy solution in this case to try and find something that will work out better for me in the long run. Because while 401ks, yes, you could argue, as Pete said, that you're paying yourself back with interest will work out okay for you, maybe in the long run, there are still risks that are assumed when you go that route.

And you have to be very, very careful and honest with yourself at the same time. So, Decide that that's what you're going to pursue.

Peter Dunn: Isn't this the case of not stacking one mistake on top of another mistake? Yeah. Because we're all going to make mistakes. It's like, okay. Don't make another one by trying to fix the other one, which here's the, here's the junior version of the first one I gave you reduce your 401k contribution.

Yeah, I yeah, you can argue

Damian Dunn: with maybe like, yeah, money, money's gotta come some from somewhere. And if there are temporary changes that have to be made I am, [00:26:00] I'm certainly more okay with that one than taking the 401k alone. If it's going to make a significant difference or a reasonable difference in your situation, the challenge there is, is what if you just assume that money into your normal spending habits and you don't make any progress on the mistake that you were trying to correct with reducing your 401k contribution?

That that's the big challenge that people

Peter Dunn: are going to face. Yeah, I think most people have more bandwidth within their own cash flow and spending than they realize. And Reducing your 401k contribution does two things that I don't love. Number one it completely shifts, completely shifts your timeline of retirement and people don't realize that.

Number two is you don't know when's the appropriate time to go in and readjust because what most people don't do is if they have a financial mistake or if they're suffering from financial pain, they'd struggle to quantify what that amount is. They don't go, Oh, I've got a 3, [00:27:00] 000 problem. And it's going to take 3, 000 worth of capital to solve this problem.

What they see is I've got months of struggle. And when you equate this to time as opposed to money, then you're not going to find the most efficient solution. So I don't love that. Dame, another one I don't love is I don't love when people just start refinancing debt or getting a cash out mortgage or, Going to like a zero interest credit card bounce around.

I think when you start refinancing the debt as the solution, as the end all solution to lessen the pressure, while that is an interesting element to a solution, it is never in itself. I think a great solution.

Damian Dunn: I think the few things that you've mentioned so far kind of lead me to a, a, a general summarized point that can be made.

You don't have a plan on how you're going to attack this. If, if it's always going, if your solution is going to [00:28:00] be smoke and mirrors, maybe a little bit

Peter Dunn: too strong. No, that's fair. I like that. Trying

Damian Dunn: to be, you know, overly clever with how you're solving this issue. That's that's not what I would consider a workable plan.

It may sure you may be able to do that in order to, you know, help springboard you towards that eventual, you know, debt free day or overcoming the mistake that you made day. But you have to have a workable, consistent plan to help you get get yourself out of whatever issue you've gotten

Peter Dunn: yourself into.

You know, I like the smoke and mirrors idea there because I think sometimes people obfuscate their mistakes from their partners and or stakeholders. And so if you're telling yourself, I'll do this and this and then this and then no one will be fine. I'm not going to tell anybody. If you've got an actual good plan to fix a mistake, you're very verbal about it.

And you're very transparent about it. And that's what a plan is. It's not a, you know, when you're in high school and you do something stupid, you make a [00:29:00] mistake. Most of your energy goes to the coverup, right? Yes. Oh, I could tell you some stories. My

Now, I am not joking here. This was not me. And this is, I'm going to tell you a story. It's the classic, and this is not truly not me. I've known a person or a million who have maybe snuck a drink or two from their, their parents liquor cabinet and just simply refilled the schmieren off with water. I mean, it, again, it's the coverup from the mistake that often finds you water down and grounded for that matter.

Dame, let's do this. Let's take a break. Because we've made enough mistakes in this segment, we've got to put together a plan to come back and do it again. After the next segment, of course, you will have Biggest Waste of Money of the Week returns, and it's a doozy. And the news finally returns. I'm Pete, the planner.

This is the pizza planner show. I have two stories of people in that regard of taking [00:30:00] booze bottles as a, I'm not even gonna give you the ages. Cause the ages are one of the pages was like 17 and the other one was like 28 years old, 28 28 year old story is sort of one of my favorites, but it also It, it feels much sadder than maybe it is.

It's really a story of stupidity and not sadness, but it feels on the surface, like I'm marginalizing someone who may have an addiction issue, which they don't. A person bought a bottle of crown Royal and went through it so quickly and they didn't want their wife to notice that they refilled it with water and soy sauce.

And had it sit there for a while to just appear that they were going, they would just go and pour some out over a course of weeks. So it didn't look like they were really tying one on. And again, sounds like a problem. Sounds like I'm making fun of someone with a, with an alcohol addition. And maybe they, I, but still sort of interesting.


Damian Dunn: I thought you were going to go with maybe a carbonated [00:31:00] beverage that they poured back in there and it didn't work out well. Or I thought maybe the soy sauce and water, the wife poured herself a drink and was very, very surprised.

Peter Dunn: The ingenuity of using soy sauce and finding the right color with water in itself is like Nobel Prize winning.

Never would have thought that. Dame, it is almost youth sports travel season. Although it never feels like it stops. What are you talking

Damian Dunn: about? It's been that way for the last three years. It

Peter Dunn: never stops. But I Mrs. Planner and I came to the realization last weekend that starting, I believe the week after next weekend, next weekend, every single day, seven days a week.

We have something until like June 11th, every, every day. I feel you. Yeah.

We high five in the hall. Hey, hello. What's your name again?

Damian Dunn: We we get a little brief respite. When things slow down and our kids transition from swim to [00:32:00] track, which is great for us because practice is immediately after school. So we don't have Late into the evening stuff so we're, we're actually looking forward to this this nice little six week period of

Peter Dunn: our lives.

Do they get right out of the pool and then go run? And so that way you don't have to do laundry, take towels because they just dry off with their velocity.

Damian Dunn: Not quite. We have to get them from one location to the other. So unfortunately there's a. What seats involved if we don't

Peter Dunn: do that, Dame, I'm listening to a good podcast.

I just started. Unfortunately, it's one of those that like it's episodic. And so only you could pay for premium and binge it. But I don't really care to do that. Instead, I'm just going to forget about the details of all the episode until the next one comes out. It's called cover up and it's the story of the anthrax scare right after 9 11.

Do you remember? Right after 9 11, like politicians

Damian Dunn: were getting anthrax in the mail. And yeah, sure.

Peter Dunn: And so it's the, it's the story inside of that. Really, really interesting. Really? Yeah. I, I [00:33:00] highly recommend for those that shop for podcast visually based on what the cover, it looks like. I believe it's a person in a respirator, like a, like a gas mask you know, it's sort of a toxic, it's called cover up, cover up.

The anthrax scare or something like that. Okay. Give it a listen. What in the world are we about to talk about?

Damian Dunn: I was hoping that you were just stalling for time because you were thinking of something.

Peter Dunn: No, I was stalling for time so you could think of something.

Damian Dunn: Raven loyal listeners following us right now, if you have a question you'd like us to answer.

No, don't ever do

Peter Dunn: that. Oh, dame. Alright. You know what? We're just gonna start the episode. We're gonna start the segment. And this is, this is reckless. This is reckless. We're doing it. All right. I don't know what's about to happen. You're gonna ruin our reputation. I don't think I really have a reputation at this point.

It is already sullied. Sullied.

Damian Dunn: It's an interesting word.[00:34:00]

Peter Dunn: Okay, let me think about this for a second. I don't want to be too reckless.

This is Kristen. If she is watching, she is just shut us off.

Damian Dunn: Oh, she, yeah, she's absolutely turned away. I, she would have sent me a message by now if she was, okay, got one.

Peter Dunn: Oh, here we go. And three, two, back on the Pete, the planner show. Damn. Consumer trends are interesting. Oh yeah, they are. I saw two things this week in financial news that had me thinking.

Is consumer sentiment and consumer habits shifting to the point that what have become tried and true businesses are going to suffer or succeed. And so one fresh example of that is HelloFresh itself. HelloFresh shares. Dove or dived 42 percent after the meal kit giant warns [00:35:00] on outlook. So Dame, I think if you remember correctly, back during the pandemic, the beginning of the pandemic, how people purchased and consumed food.

Got flipped completely on its head. Are you tracking back

Damian Dunn: to this time? Yeah, I vaguely remember

Peter Dunn: it so much so that a local restaurant in my neighborhood, they would serve meals, but they logistically became a grocery store on their online menu. They you would buy your groceries there. You would buy your flour and your.

Cheese, because everyone buys flour and cheese, apparently it's a pizza store. No, you just buy all your stuff. You would buy toilet paper there. You would, you would buy vegetables there. And it was simply, simply a restaurant. And then of course, grocery store pickup and, and all of these, you know, grocery delivery things became even more prominent.

Door dash became more [00:36:00] prominent. But Dame, one thing that appears to have suffered Are the ready to eat meal kits. Do you remember all of these like blue apron and how much money? Yeah. Yeah. But I feel like right before the pandemic, they were the hotness. They were like, we are busy people. We only have 30 minutes to make meals and no, we don't have time to watch Rachel raise 30 minute meals, then make the 30 minute meal because that's an hour.

Instead, we're going to pay. Premium a premium to bring in a meal kit and lots of little packets and then pour it in the right order and voila You got chow mein You remember this sentiment?

Damian Dunn: Yeah, it was all over the place premium ingredients you know It was on its face an interesting proposal, but maybe people are realizing that well, I don't know I I don't want to read into it pete.

Tell us what's going on on friday.

Peter Dunn: March 8th Hello, fresh shares plunged. I did a lot of, I've done some research here.[00:37:00]

Shares plunge 42 percent on March 8th, Friday morning, and the worst ever session to date. Dame, if you're a company and your shares ever described as plunging, especially to the tune of some 42%, that's a problem. It's a bad day. The recipe box delivery company disappointed with its 2024 earnings outlook. I can also say this as someone who has to deal with earnings of our own organization and give an outlook and a forecast anytime within the first quarter, you're signaling to the outside or to your investors or to your board that the entire year is going to suck, pardon me struggle.

Sorry, I forgot where I was. That's, that's not good. Analysts at UBS said that while. Hello, fresh had flagged risks or pardon me. The UBS itself had flagged risks around. Hello. Fresh is guidance. It's outlook released after the market close on Thursday was far worse than anticipated. It's, it's really interesting to [00:38:00] me.

Cause listen to this, the Berlin, the Berlin based Deutsche bank said Thursday it's expected adjusted earnings before interest taxes, appreciation EBITDA to come in at 448 million euros down from 477 million euros. Damon, it appears to be a company like headed towards the bottom.

Damian Dunn: Rethinking my my loser of the year is what I'm, I'm doing at the moment.

Peter Dunn: By the way, speaking of didn't you choose beyond meat? I'm off Instagram, but I randomly got pulled back in the other day and someone slid into my DMS, a listener of the show and told me, flagged to me that beyond me, one of your picks for the year, also a food centric business is going the opposite direction.


Damian Dunn: They they slid into my DMS too. And I asked them not to relay that information because I certainly wasn't gonna say anything. And they just replied with oops. [00:39:00]

Peter Dunn: Dame and, and like minded news. Costco on Thursday missed Wall Street's revenue expectations for its holiday quarter despite reporting seven year over year.

I can't read despite reporting year over year sales growth. More shoppers came to Costco and they spent more on their shopping trips during the quarter. The e commerce sales grew for Costco, 18. 4 percent of the quarter compared to earlier in the year. So Dame, what, what can we glean from the idea that meal kits are going down disappointing holiday news for Costco, but it feels like stores like Costco's earnings continuously rise.

Like what is the make of that individual single serving meal kits down. bulk purchases of both 55 pound bags of rice and couches increase. That's an

Damian Dunn: interesting, interesting question. Because I, I feel like warehouse sales are, are typically pretty consistent [00:40:00] on a rather upward trajectory. I think services like blue apron and whatnot, I think those, I don't want to say they're flashing the pans, but they, they, they tap into a trend or a time, a period of time that is important in, in in your life or the, the country's.

Moment and they take advantage of it but I think we're we may just be reverting back to the mean on some of these things and we're Just being a little bit more traditional, you know buying those three gallon containers of ranch

Peter Dunn: I think what can also be derived from all of this is that part of costco's membership model, their, their finance model are those membership fees and how much money that produces the same way Amazon prime produces so many, so much revenue from prime fees itself.

And now target this week is jumping on this bandwagon. They've announced it will launch a paid membership program. Riffing off the playbook of both Amazon. And of course, [00:41:00] Walmart has done this as well. Damn, it is called Target Circle 360. It will launch in early April, could be an April fool's prank and to the world of IHOP from years ago, but I doubt it.

It will cost 99 per year. Target will offer a discounted rate of 49 per year. As part of the promotional from its launch through May 18th, the program will include unlimited free same day delivery for orders over 35 in as little as one hour with no delivery fees to free day shipping along with other perks Dame, I am not a consumer goods expert.

I am also not someone that wants to just send cars driving all over the roads to bring me some toilet paper when I'm out. However, that seems like a pretty good deal to pay 49 for unlimited free same day delivery on items of 35 a month. It seems like a reasonable thing to do. I

Damian Dunn: think target actually bought a delivery service, kind of like a, you know, Uber, but it was for local, local things like that.

And they've, they've already got a. [00:42:00] Structure in place where they'll actually be able to leverage something that they've already purchased in the past. So my question was, Amazon's got media stuff. Walmart is rumored to start their own media streaming type of thing. Is target going to get into that too?

Are we just going to have this, this huge menu of options for big box retailers? I guess Amazon doesn't, but are we going to see a. proliferation of media options from names that we never would have equated to that in

Peter Dunn: the past. Oddly, I don't find that to be a ridiculous question. I think that's a really smart question because even look at what Apple reported last week, that they abandoned their car program where they were going to build a, An I car, I don't know what they're going to build, but they've, they've scrapped plans for that.

I think if you got enough capital and you're trying to diversify your revenue streams, like a place, the size of target who in recent years has struggled a little bit. I don't think it's out of the ordinary to say now target has a streaming [00:43:00] service. And by the way. I think the same can be true for streaming services.

They say, okay, we're streaming service. What sort of retail can we, can we do off of that? It's an old playbook. I mean, look at the likes of universal studios and the universal media company. I mean, that is a thing. And so it's with that, that we take a deep breath. We get a sip of coffee and we come back with biggest waste of money of the week.

I'll tell you Dame this week it is a giant waste of money yet. It's one that I would like to enjoy myself. I, I can't think of an item on this show that we've done in the last year that I want more than this yet still a waste of money. All that is next along with the news, your favorite part of the show.

I'm Pete, the planner. Not your favorite part of the show being. I feel like if we charged for our podcast, we would be issuing refunds this week. Yeah. Based on that segment. It's

Damian Dunn: not one of our better

Peter Dunn: performances. I'm not going to lose [00:44:00] sleep over it, but that, that was terrible. And it is my fault. And so as, as all things around here that go wrong, I will gladly take the responsibility.

Don't be so

Damian Dunn: hard on yourself.

Peter Dunn: And like I said, I'm not going to lose sleep. I don't really care. As soon as the show's over, I'm going to go find a sandwich of some sort. And go for that. I tell you the Danny Dunn joke that he was on the line the other day. He was, I tell you that one, right? I watched it.

I watched it. I don't know if I thought about it on the air, but he was, he was doing crowd work. You know, Danny Dunn, friend of the show, actually related to me. A comedian, LA based comedian. He posted some of his work. He was doing crowd work and someone in the crowd was telling this horrendously long story with literally no payoff, which is why generally you don't want to involve the crowd because they don't know what they're going to say.

It's also why I don't take calls on this show. And he simply looked at her and he said, wow. It was a long walk for a small sandwich and I thought that's the funniest thing I'd heard in a really long time Speaking of let's get to the rest of the show so I cannot miss my 11 a. m Meeting which is with Dame [00:45:00] I don't know who it's with Wait, someone booked it.

Oh, Lubs. Okay, here we go. Yeah, I talked to him before the show. Okay, anyway, no one cares. No one cares at all. In three, two, one. This week's biggest waste of money of the week right here on the Pete the Planner Show is Spanish Bonilla Potato Chips. Bonilla a la vista. How about that accent? It's been, it's been crafting their patatas fritas since 1932 and has developed a cult following over the country, pardon me, over the century.

Dan, can I get a timeout? Sure. Not only are my choices and preparation for the show shows completely inadequate, my inability to read today has really stifled any entertainment factor that could have been derived.

Damian Dunn: I, you know how hard it has been for me to try and make you laugh with, with your just constant

Peter Dunn: stumbling over.

[00:46:00] You did get a laugh by actually let's finish this and then we'll get back to your laugh streak. Okay. The gourmet potato chips are made with strategically selected potatoes from Galicia timeout. Sure strategically selected potatoes. Yeah,

Damian Dunn: I have no idea what that means.

Peter Dunn: I mean, when you go to the grocery store and you're going to get baked potatoes or roasted potatoes, I mean, theoretically you are strategically selecting potatoes, you pick one up, you'll turn it over and see if there's any weird spots.

Is that in itself strategically selecting potatoes? It has to be what they're talking about. The expertly cut slices are fried crisp in 100 percent olive oil and finished with sea salt. They are famously packaged in a metal tin, even made a cameo. In the 2019 film, Parasite. Dame, these are 6. 4 ounces. Made in Spain.

Each tin has a shelf life of 3 to 6 months. I would ideally like the ones with 6 [00:47:00] months. These look unbelievable. I have to admit, I want to place these deep into the hole in my face. The entire can once I've opened it and take the contents of the cam. But how much do you believe 6. 4 ounces of Spanish Bonilla potato chips are?

Damian Dunn: I'm going to guess that it's going to be 12. 12

Peter Dunn: is your guess. What's the normal, just for, for, let's just for giggles here. What's the normal size of like a snack pack of Frito Lay or something like, can you lift that up? They've

Damian Dunn: got like five different sizes of bags on the shelf at the grocery store.

Peter Dunn: All right, we have a bunch of chips out in the kitchen here at the studio. I want to go look here. But these are 6. 4 ounces. I feel like the normal bag of chips is like four ounces. Oh, you mean like the small? Yeah, like you get it at Subway or whatever. Yeah. Oh. What do you think those are?

Damian Dunn: [00:48:00] It looks like they're one ounce.

Peter Dunn: Okay. 55 are how much these chips are. 55. I love chips. One day after work, I went home. This was during the Oprah Winfrey era. Oprah was on and she was talking about her biggest weaknesses. I think this was on a a favorite things holiday episode. She said, I could just sit down and eat an entire bag of chips.

And I never felt more connected to a person in my life than when Oprah said that, cause I can open an entire bag of chips and I can eat the entire bag of chips, but I don't know if I would spend 55 for Spanish potato chips. Dan, what

Damian Dunn: is the thing that you could consume the most of that when you really think about it as gross?

Peter Dunn: Other than whiskey I'd say probably rice krispie treats.

Damian Dunn: I probably have to go with with Oreos.

Peter Dunn: Really? Oh yeah. Do you need the milk to wash them down? No,

Damian Dunn: no. I, the Oreos are just already delivered to you in those handy single serving size [00:49:00] sleeves inside three sleeves.

Peter Dunn: Just three rows. What's your deconstruction methodology there?

Oh, I just,

Damian Dunn: just to throw them in my face. I don't, I don't, wow. Yeah,

Peter Dunn: oh, here's what I do. You didn't ask. Kristen is watching. Oh, she said french fries. No, they were spanish fries. You, you twist, okay, you twist the Oreo. Then you eat the non creamed side first, pop it in. Then take your finger and you peel off the cream button, if you will eat that independently, and then you eat the final undressed cookie.

That's what I do.

Damian Dunn: Okay. I, we don't, we don't shame decisions

Peter Dunn: here. What's in the news this week?

Damian Dunn: One of your favorite topics. The lawyers who voided Elon Musk's 56 billion compensation as excessive last week sought a record 6 billion legal [00:50:00] fee payable in Tesla stock. Quote, we recognize that the requested fee is unprecedented in terms of absolute size, the three law firms said in a filing with the court of chancery in Delaware.

That fee works out to an hourly rate, a fairly staggering hourly rate. Pete, would you like to take a guess?

Peter Dunn: I will, but just for some clarification, these are the people that represented Elon Musk or that were going after

Damian Dunn: him? Going after him. They represented Richard Tornetta, the stockholder that sued.

Peter Dunn: I'm gonna go, I'm gonna guess big, so I'm gonna ruin your story by guessing big, and then it'll be lesser than, and it'll make you feel bad.

I'm gonna guess 5, 000 an hour.

Damian Dunn: How long do you want me to say higher?

Peter Dunn: Just gimme the number,

Damian Dunn: $288,888 Pete per hour. They just went after a guy about the size of his compensation package, and they had the gall to charge [00:51:00] $288,000

Peter Dunn: an hour. I think the funniest part is that they, they want to be paid in Tesla stock.

Tesla stock, which is like. It feels like a punitive invoicing, really. It's like they're trying to stick it to him in a harder way than necessary, as opposed to the 280, 000 per hour of legal

Damian Dunn: fees. The electric vehicle maker is being asked to pay the fee because it benefited from the return of Musk's pay package, which the legal team said will result in the return to the carmaker of 266 million shares.

Peter Dunn: What a,

it's a ridiculous situation because his, his package that he was trying to get that was voided. How much was it voided? How many billion?

Damian Dunn: 50, 56 billion.

Peter Dunn: 56 billion. Interesting. What else is in the news?

Damian Dunn: It's the latest musical mashup. Top 40 hits meet financial engineering. [00:52:00] A startup is offering securities backed by the royalty streams from songs recorded by such artists as Beyonce, Taylor Swift, and the pop rock band One Republic.

Its goal is to bring music investing to the masses. JKBX pronounced, you want to take a guess? Jukebox. Jukebox, absolutely. Opened this new marketplace after the Securities and Exchange Commission signed off on its first offering last week. Individual investors can visit its website to buy slices of income generated by dozens of songs, effectively bonds backed by beats.

Peter Dunn: Do you remember the investment company where an NFL player, you could buy stock in an NFL player's career? Do you remember this? I'm pretty sure it failed miserably, but it was a more of a futures contract, right? Like a, this company would take up. Mid range player paying millions of dollars as a hedge against whatever their future contracts be.

And then the investors would get a [00:53:00] return on their performance. I, I could be wrong because I often am. I'm pretty sure I had the CEO of that company on my radio show whenever that happened.

Damian Dunn: There is still a company functioning with that model, and I don't know if they how far they expanded to other sports, but they're very prominent in baseball.

They have a deal right now with San Diego Padres stars, Fernando Tatis who took him up on this, where they basically, they front the minor league player, a whole bunch of money in the minors. And they say, you don't know if you're going to make it to the big. So you may get hurt. You may blow something out.

You may just, you know, Not ever able to break through and we will give you this much money now, but in consideration for X percentage of your future earnings in the big leagues for so many years and he's on the hook for millions and millions of dollars at this point because he did break through and he is going to make a lot of

Peter Dunn: money in the big leagues.

Did you and I talk about this in the last couple of weeks or was it me and Mrs planer? I often confuse you [00:54:00] to When older musical artists sell their catalogs, did we talk about this or was this me and mrs. Planner? It was you and mrs. Planner Why would you not do that? Like if you're the the Rolling Stones or you're you're you're in Neil Young.

Why would you not be like, oh, yeah Here you go. Give me 500 million dollars. There's no reason So

Damian Dunn: you probably want to have control over who and how your, how your music is used. I don't

Peter Dunn: know. That's all we have time for this week. Thank God. Next week, Kristen's back. That means the show will be planned and it'll be great.

Please listen. Good vibes. Good vibes are all we have. Good day.

I don't need to go to a dentist for a while because we just spent the last hour pulling teeth. It was, it was special. Look, I don't, here's the thing. I know it's like, Oh, Peter, you're going to apologize to us. I don't know, urology.[00:55:00]

I'm sorry, look, I mean, we can't all be gems. The good ones won't feel like good ones unless there's bad ones.

Damian Dunn: That's exactly right. You can't appreciate the highs without experiencing the lows. Yeah.

Peter Dunn: The, the, the sweet taste of victory doesn't taste so sweet until you've suffered the ills of defeat. What kind of Oreo

Damian Dunn: would victory be?

Peter Dunn: Oreo. I got on a Chips Ahoy cook Chips Ahoy kick for a while and then I, yeah, but it was, it was short lived. And then, do you remember the chewy Chips Ahoy that had like the hotness for a while? Those were good to regular ships.

Damian Dunn: And boy, they're just stale chocolate chip cookies. I don't see how anybody appreciates those.

Did you ever enjoy archway chocolate chip cookies when you were a kid?

Peter Dunn: A bit. They tasted a bit chemically. My current commercial cookie of note is Tate's come in the green bag. They're sort of a bougie chocolate chip cookie figure. They come [00:56:00] from South Hampton, New York, and they are Ridiculously

Damian Dunn: good.

Well, I'll be down in your neck of the woods next week and maybe I will go grocery shopping and see if I can

Peter Dunn: find some. You, you can find them in any grocery aisle. They're a green, like a Kelly green sack. I, I highly recommend their chocolate chip cookies. I'll

Damian Dunn: see if I can find them up here. I don't know

Peter Dunn: about that.

I don't know. That's a good point. All right, Dame. Geez. I got to get out of here. That was, that was a thing, huh? It

Damian Dunn: was something. It was something.

Peter Dunn: I'm sorry, everybody. I'm not that sorry, but anyway stay getting money.