June 28, 2024

Should an emailer payoff their house with a giant bonus?

On this week's episode, Dame and Pete discuss whether a 37 year old should payoff his 6.5% mortgage with a giant bonus.

Episode Transcript

Peter Dunn: [00:00:00] So this is the last show in the studio. Didn't mean to rhyme, but it sounds fine. Damn. Hello for last, last show in the studio. And then it's over. No more

Damian Dunn: shows in this studio. I never even realized the last time I was in that studio would be the last time I would record in that studio. Who knew?

Peter Dunn: Five years.

We've been in the studio and then we're taking a week off next week for 4th of July, and then the next week we will be in our brand new studio and offices. Nine iron away from the current location. Dame last night in Atlanta, Georgia, one of the worst moments in American history occurred. Did the Braves lose?

No. Oh, much worse. Much, much worse. The U S men's national team lost to Panama and Copa America. And it really set off the night on a weird foot and the rest we will be left unsaid. Hello, Dame. Hello, big Rick Swink. Good to be with you. Kristen. Is either [00:01:00] a not allowed into the podcast via StreamYard or B on PTO.

I choose to

Damian Dunn: believe that she is not allowed into the stream.

Peter Dunn: I agree. I think she's like literally trying to click the link and can't get in and she's going to have to take PTO. Two updates of various types here this morning. Super quick one sentence updates. Two super quick, one very positive, one very negative.

And then Dan, we're moving on to the show. It's gonna be a quick show today. Do you want the very positive update or the very negative update to start? Let's start negative. So we finished on a high note. Okay. There was another Alexander Joyce lawsuit filed this week. Now it's time for the good news. My brother in law, Chris Plumb is a U.

S. Olympic coach and will be representing all of us in Paris coaching the swim team. And so we, we speculated last week that that could be the case. And it is in fact the case he is an Olympian [00:02:00] after I was exchanging texts with him this week. And he was like, yeah, for 40 some years, this has been my dream and I accomplished it.

And I was like, that is

Damian Dunn: wild. I never considered that he would get to call himself an Olympian, even though he's not a competitor. He's a coach. Well, I don't know if he calls himself an Olympian.

Peter Dunn: I called him an Olympian. I don't know. Okay. Definitely worth splitting hairs for two hairless guys. Yes. Dame, the weird thing about all of this is your family is the Aquadons and so this probably is somewhat neat for you too.

Absolutely. I love having a relative be an Olympian. Hi, Rochelle. How are you? Jason Brown. Hello. All right, Dean. We got a pretty quick show today because the sec, this is the truth. Cause I generally try to tell the truth. The second this show is over, probably the minutes this show is over, Hi Andy I'm tearing down the studio.

I'm literally tearing down this studio. So there we go. I also will note in the new studio, I will be [00:03:00] standing and not sitting.

Damian Dunn: I think that's going to increase your yep. Yeah. Yep. Go ahead and say it. Cause it's what I'm thinking too. No, no, that's okay. We'll just let it play out. Yep. Yep. Yep. Chaos.

Yeah, that's good by to put it. Okay.

Peter Dunn: All right. Well, let's do a little show. We got to email questions and then we're doing into the quarter stock market picks. Oh Lord have mercy. It's good. Just hold up the calculator. So that's cute right on schedule. All right, you ready to go? All right. And you know, three, two, this week on the Pete, the planner show, we answer your money questions.

Here's how the show works. You email us, askpeteatpetetheplanner. com. That's askpeteatpetetheplanner. com. And here's what will happen. We may or may not answer your email on the air. We may or may not write about your email on the internet or periodicals. [00:04:00] Joining me today, Damien Dunn, no relation. Hello, Dam.

Hello, Pete. Dame is a senior principal financial guide at your money lines out. You're that's, that's what I've been bestowed with. You like that? I started with senior just because of I'm old. Yep. Okay. Let's go. Radio show questions going to the slack channel. We'll go first questions first. If you're lucky enough to, I'm reading now, if I'm lucky enough to get this show on the air, can you not share my name?

I have people that I know that listen to this signed Dave Johnson. Okay. Morning, Pete, Kristen and Dame on episode 542 of the podcast on May 21st, a listener asked about cashing in his Roth. To pay off his mortgage. The unanimous answer was don't cash in the Roth for this. I have a very similar, but slightly different question situation.

What if the listener has enough cash on hand to pay it off? Would you say go forward or [00:05:00] invest with the hopes of future games outpaying seen interest? Here's my situation, Dame. Now I'm going to read seven details about this person's life. And as I go through each one, I want you to individually evaluate Okay.

Whether you would rather switch places with this person or just remain as you are. Okay. Yeah. Let's do that. 37 years old, three kids that are nine, six, and one. Do you want to trade places? No. Okay. Household income of 200k. You don't want to weigh in on that. No. Okay. Maybe the rest we shouldn't do. Okay.

Retirement savings, 730, 120 of the 730 is in a Roth. Not sure if that matters. Fully funded emergency fund. 529s for each kid since birth. Only debt is the mortgage. And here are the mortgage details. 30 year loan purchased in 2023. Oh, 250, 000. [00:06:00] In principle, six and a half percent interest rate. My company recently sold and I'm in a period where over the next 18 months I have retention incentives that could pay off my house by January 1st of 2026 without interrupting my retirement savings plan or college savings plan.

It is very tempting to go totally debt free, but it's a smart move. Thanks. Fans love the show name with health. You know what? I'll start here. Oh, Nick Bogan joins on the Facebook live stream here. I'm sorry. We're on the radio. I shouldn't have just distracted myself. A little Nick Bogan. All right, Dame.

This is a much more compelling case to actually pay off the mortgage. Is it not? Yeah,

Damian Dunn: I mean, it's, it's, it might be difficult for some to, to parse the situations by, by saying, well, if it's in a Roth and the money's available and I could potentially take that out versus having cash, but there is a significant difference, isn't there?[00:07:00]

Peter Dunn: There's a, there's a couple of big differences. Number one, what's the one that jumped out to you? Mine's the interest rate. What's the one that jumped out to you?

Damian Dunn: I think it's the interest rate on this that really makes me Give consideration to this option.

Peter Dunn: Okay. So generally speaking, when evaluating whether or not you should pay off a big piece of debt as opposed to holding cash on the other side in some sort of instrument, what you do is you say, what is the interest rate and how does that compare to what the asset is otherwise earning?

So even in the simplest form, if you said this person had a five. 0. 25 percent money market account, and they've got, they're paying six and a half percent in interest. On the very simplest, most distilled level, Dame, you could say you should pay off the debt. There are other factors here. And one of the other factors I see is he's already got almost a million dollars saved for retirement

Damian Dunn: at 37

Peter Dunn: at 37.

He's [00:08:00] way ahead of the game, very far ahead. I don't love a 30 year mortgage. And I don't love that he has a six and a half percent interest rate. But I feel like he can solve both of those problems. What do you think? I'm just doing some quick math in my head here. What do you think his mortgage payment is?

Damian Dunn: That's what I was trying to guess. Or because the next question is, okay, let's say we give you the gold seal of approval and you go and you pay off this mortgage, what are you going to do with the mortgage payment that you're no longer obligated to make? Where, where's that money going? Because is it going to roll into the five 29s?

I know he said he's got him since since birth for all three of the Children, but you're not going to get any kind of financial aid with with your household income. That's just not going to happen. So you're going to be on the hook for a large, large chunk of whatever is coming unless they're academic or athletic scholarships coming through as well.

Retirement decent shape as we know, but [00:09:00] I think the well. Do you, do you think they could potentially turn some of this into a little bit of lifestyle creep and still be okay with that mortgage payment? I, yeah,

Peter Dunn: you went through the exact process I was going through in my head. Okay. So you pay off the mortgage.

Now you, let's say we got 18, let's say 1, 500 a month to do something with now. Okay. Are you going to expedite retirement in terms of what you put towards there, not necessarily. Could you put 500 a month in each kid's child's college fund? Maybe. Sure. Could you increase non qualified investments to allow yourself to retire well before 59 and a half?

I think that's what I would do. Yeah, what do you think?

Damian Dunn: Yeah, so I'm, I'm looking at 730 by the age of [00:10:00] 37. That's a staggering number.

Peter Dunn: I agree.

Damian Dunn: Have

Peter Dunn: how 120. Okay, but let's just say this 20 years. Let's say 20 years from now. We're approaching 59 and a half for him. He will have at least two doubling periods, right?

So he'll have at least three million dollars in savings. Without saving another dime

Damian Dunn: 20 years from now. I bet this is a combined account balance.

Peter Dunn: Yeah,

Damian Dunn: between what he and his wife have both been able to. Or he and his partner have both been able to to put away. I agree with you. Yeah. So still, I, that is an amazing amount, but yeah, I, I think they could take a little bit of the mortgage payment, absorb it, make a, make life a little bit cushier for themselves.

I, I would be willing to bet that they are pretty disciplined family based off of what this is already. [00:11:00] And even though if we told them they could take all of it, they won't because. The proof is in numbers one through seven. See

Peter Dunn: when we we've gotten these questions for years and and sometimes what we try to read behind the scenes and don't necessarily talk about is do we trust A person based on what they've already done to make a good decision.

So it's not like this person's going to turn on a diamond and all of a sudden become irresponsible. And Oh, we had it all set up for, for 16 years as a working adult, I'd done all the right things. Then I got bad advice on the radio and I became like, this person's going to be fine no matter what. And if it were me or I.

If it were either of us, I, I, I would, I think I would pay off the mortgage. Yeah. I, I think I would too. I, I, I, there's, there's added flexibility to it too game because what he could do is let's [00:12:00] say 18 months. Let's say that's. Six quarters. It is six quarters, right? Six fiscal quarters. And let's say he was getting incentive pay during those six quarters.

He could actually accumulate it off to the side and then make the decision at the end. Sure.

Damian Dunn: And put it in a high yield savings account or something like that. In the meantime, make a little bit of interest on it. And well, are a lot of interest if we're talking about being able to pay off a mortgage, which.


Peter Dunn: I love it. Good for you, sir. Good situation to be in. Actually, dame coming up after the break. The next email question also involves high yield money market accounts and interest rates. It's an interest rates extravaganza. I'm sorry. We'll be back right after this. I don't know. I got excited. So many friends here in the chat today.

Tom Ricks. Hello, Jameson. Hello, Nick Bogue and I were college friends, and he's referencing the great Eduardo Rivera, [00:13:00] who is our accounting teacher, who He would talk like this, he was the, no, maybe that's not it, that was the Albanian locksmith. Oh boy, what are you gonna do?

Damian Dunn: Dane, we got big 4th of July plans? Yeah, we're taking a little trip down south for a long weekend. We're gonna see a couple different things. Shoot fireworks shows and do some hiking in the mountains and have a grand old time yourself going to a Cubs game

Peter Dunn: Yeah, I've never been to a Cubs game, which is weird. Yeah, no weird.

Damian Dunn: That's I I will be Anxiously awaiting your your review of Wrigley Field.

Peter Dunn: I'm sure I'll love it. Here's here's the here's the vibe I'm gonna be there with a bunch of family. I'm gonna have on a lot of sunscreen Skull protection for my baldness and I'll probably be having an ask old bar was

Damian Dunn: Where are your seats? Do you know? Are they the bleachers? [00:14:00]

Peter Dunn: I don't know I don't know.

Anyway. Okay, let's do it. Next segment. Everyone's enjoying themselves. 3, 2, 1 back on the Pete, the planner show Dame another question about interest rates and savings. Dear Pete, my broker says I should move money from my money market account to a bond fund before interest rates start to fall. He says I can get about 8 percent on bonds.

Once interest rates start to fall, it's in the 8 percent yield, right? And my money market returns will roll back to around 3%, in his opinion, from their 5 percent worth of currently paying. Does this make sense? Should I do it? So Dame, let's discuss, I actually know this person. Oh, and so I emailed them back and forth and got some more details that I can share with you.

Damian Dunn: Yeah.

Peter Dunn: So what jumps out at you [00:15:00] right away?

Damian Dunn: I, I think interest rates will come back. I don't think it's going to be like a light switch though. It's going to be a slow roll back to 3 percent and prop possibly not until 2026 based on what the Fed's outlook is on what they're going to do with.

With cutting of their rates. So I don't think this is an immediate decision that has to happen right now. It's it's still going to be okay for a while. Second, your advisors right with with how this is going to work in theory. If interest rates go down, bond prices go up. And if Bomb interest rates go up, bomb prices go down.

So there's an inverse relationship there with bomb prices. So if that starts to happen, you want to make sure you are in as much as you can. But I mean, there's, there's other aspects to consider here that, that your advisor may or may not have [00:16:00] discussed. And this is where I'm going to pause and try and get some of that additional information for Pete before I go headlong into this, this conversation.

Peter Dunn: Let's do this. It'll be fun. You're going to ask me. Cause this is like the information I got to start and then I went and asked for more information. So let's see if you're going to ask the same things that I asked. So what do you want

Damian Dunn: to know? So the cash that's, that is sitting there that we are jumping from cash into bonds.

What is the purpose for those cash? Man, sometimes it's like

Peter Dunn: looking in a mirror. I know. It is, A second tier emergency fund. So they've got a year's worth of savings set aside, and this is an additional 150, 000 in the money market account, and they're thinking about moving a hundred of it. Over and I'm giving too much right now because when I when I was talking to them, I said, just so you know, this isn't a binary [00:17:00] decision.

You don't have to do now. We're doing bonds, right? Like, just take a percentage. And so of the 1 50, they would move 100. Over hoping to get 8 percent instead of the predicted 3%.

Damian Dunn: Can we can we chase a rabbit trail for a minute? Yes. If this is a second tier emergency fund, are bonds the right choice for that for those dollars?

Peter Dunn: They're In their eighties. Okay. , you didn't

Damian Dunn: ask how old they were. You should have asked me. Yeah, I absolutely should have asked how old they were. That that's okay. So they clearly have designs on leaving a substantial amount of money to heirs. The person

Peter Dunn: said, this is this account. is there's zero chance that we touch it while we're living.

It will only go to our heirs and then money beyond that. So again, [00:18:00] first year, second tier savings, and then there's the person's actual investments.

Damian Dunn: Pete, if there's zero chance they're going to touch this money and they want to leave substantial money to their heirs, why are you going to put it in bonds?


Peter Dunn: they're still subject to their own risk tolerance. If you're in your 80s and you're watching market fluctuations, even though you're passing on, it still stresses you out.

Damian Dunn: Yeah, come

Peter Dunn: on. It's

Damian Dunn: true. I guess I guess I'm just looking to maximize the returns for because in theory if they don't have any intentions, Using this money and they are very confident.

They're not going to use this money. The time horizon changes completely for these dollars. I agree,

Peter Dunn: but it's still the wrist tolerance of an 80 year old and even the time. Okay, look, think about this for a second and you just said the same thing the time horizon for the 80 year old and this is sort of weird to talk about actually extends beyond their time.

[00:19:00] Yes, right. But I don't necessarily believe the risk tolerance for the 80 year old extends beyond their time. That's my opinion.

Damian Dunn: Sure, that's fine. Risk tolerance is a very unique trait of all of us. So if they are Of the fact they just want to keep it safe and make sure that they don't end up with with less money.

I still don't know if bonds are the right, the right, the right way to go because bond prices and bond values will fluctuate based on what's going on in the market. So if they want to have the ultimate and safety for their, their money that they're not going to use, who cares? Just leave it in the savings account and let it get three to 5%.

Peter Dunn: Here's another thing I told the person. I. So the man is, I say, more aggressive than his wife investment wise. But even then there's always blurred, [00:20:00] blurred lines of risk tolerance. I can say more aggressive, but that may not actually be aggressive. And so I knew that this person was going to have to talk his partner into this move that their broker recommended because she's more naturally conservative.

So I said, okay, well, what's the opportunity cost or relationship cost for this person? Trust withdrawal cost of doing this to only get 5, 000 more per year. Cause if you think about this, it's a hundred thousand bucks, they're trying to get 8 percent instead of 3%, which is a 5 percent difference. Is all of this rigmarole worth it for 416 a month and possibly adding stress to a beautiful retirement situation.

Damian Dunn: And if there's more than one error, even less per error. Right. We're talking about a very microscopic, different Microsoft, [00:21:00] but a rather insignificant difference if there's five people that are going to inherit this money versus just one.

Peter Dunn: I mean, I, again, if we get into what would I do and, and you can get into what would you do if I were 80, I'd a first I'd have the same haircut as I have now, as would you I'd probably leave well enough alone.

I just don't understand squeaking out additional yield. Given these circumstances, even though I'm never going to touch the money, I just like, I don't want to mess with it. If

Damian Dunn: I'm 80 years old facing this, it's just needless complexity as far as I'm concerned. It's a great complication. Yeah. I mean, it's a great problem.

It, there's a little bit of moving parts. There is additional risk that will be absorbed, but the return isn't going to be. worth the headache

Peter Dunn: in

Damian Dunn: my estimation.

Peter Dunn: We got about a minute and a half left. Let's do something here. Let's work with me. I'm going to be your broker. You be the 80 year old man. Like I'm not looking for any dramatic.

I just want to [00:22:00] see how this might play out. Hey, I think you should move a hundred thousand dollars into this bond fund because I think you'll get higher yields as interest rates start to fall and it could be about a 5 percent Delta. What do you think?

Damian Dunn: I prefer United. What about Delta?

Peter Dunn: It wasn't an airline.

No, you're doing jokes. You're doing bits. Sorry.

Damian Dunn: So do you want to do this? So how much in real money are we talking? Probably about 5, 000 per annum. And how much extra is this going to cost me to do this? Negligible cost. Negligible cost. Do I have any tax consequences off of this? No, not necessarily.

I mean, if I was a real stick in the mud, I would ask how much are you going to make on the sale of these bonds or managing this money because it would be moving from a cash account into a bond account, something that would be managed, but like, let's say you say [00:23:00] no with the

Peter Dunn: 15 seconds. You say no.

Here's what you're like. Okay, just thought I'd bring it up. See if you want to do it. No problem. That's how it should go. I should not try to talk you into it, by the way. And it's with that. Okay. Then we take a break coming up after the break. Stock pick review. I'm Pete the planner. I love that the operative point was the three seconds at the end.

It was me going. Okay, just let it check.

Damian Dunn: But that's, that's exactly how that conversation should go. Yeah, your advisor is an advisor. They are giving you opportunity. They're giving you options that may or may not suit. Well, they, Arguably all should suit your needs, but you're ultimately in charge of what you do or don't do with your money.

And if you say no, that doesn't sound like it's for me. I should say, just wanted to check. Thanks. Thanks. Moving on.

Peter Dunn: Yeah. Your, your broker is not going to take it. A good broker is not going to take it personally. You know what I mean?

Damian Dunn: No, they've done their due [00:24:00] diligence. They know you and your situation.

They found a potential option or opportunity that might might suit you and what you're trying to do. And if you say no, no. Okay. Okay.

Peter Dunn: Alright. Stock pick, update with Kristen. Not here. It'll work better for us that way. Why is that? So she's not spending the whole segment bragging. Mm-Hmm. . Okay. Are you ready?

Mm-Hmm. . Alright. In 3, 2, 1. Back on the Pete, the planner show Dame every year in January, I believe is the first month of the year. Mm-Hmm. . We do a little. Entertainment exercise called the great stock pick extravaganza. Is that what we call it? Of course. And the purpose is for entertainment only. And it's you, me, and Chris, and we all choose.

What we believe to be the best performing stock of the coming year. What we believe to be the worst performing stock of the [00:25:00] coming year. And then where we think the S and P 500 will land from a return standpoint what is always inherently awkward about this. Other than it is for entertainment purposes only, is that it feels like we're rooting for certain companies to fail on that second guessing category.

So I would feel a little bit bad about that, especially as I've been following my pick this year and it's been going down, down, down, down to the ground. And I've, I've found myself moved by it and I feel bad about that.

Damian Dunn: You should,

Peter Dunn: I know. Okay.

Damian Dunn: So where should we begin Damien? I think we start with the winners as we traditionally do.

We'll start from the top of the list. So that would be. You, Peter Dunn, do you remember your winner? It wasn't heckla mining, was it? It was heckla mining. Very nice. I wasn't sure I had to look up what the ticker was because I couldn't remember what it was. You are, you're up so far for the year. Nice job.

12. 07%. [00:26:00] Wow, better than a bond fund, better than your money market account. It's true. I chose Delta Airlines in honor of pilot Jeremy. I'm up nearly 22%, 21. 89 percent this year, 21. 89.

Peter Dunn: They've got a lot of great press this week. Did you see the article on CNBC around, it was said like Delta is America's premier luxury airline.

I was like, wow, you know, the PR team at Delta was like they couldn't have written that headline themselves. Like they couldn't have dreamt of that. Maybe they did. They probably did. Okay. And

Damian Dunn: Chris, Chris chose a little known company known for making school buses. If you are even familiar with Xerox.

Yes. Yes. Bluebird, Bluebird buses, Bluebirds having an okay year. They are up [00:27:00] 117%. She's unbelievable. 117.86%. As of this. How can we continue

Peter Dunn: to call this entertainment purposes only when she's just slaying it like that?

Damian Dunn: We could add our two together and double it and still not

Peter Dunn: sniff her returns. Pete, did we ask her?

I think we asked her on air if she actually purchased bluebird buses and we did

Damian Dunn: and she did not. I don't believe her. Yeah. Well, if she shows up to the office in a new Range Rover, we'll know otherwise. All right. So there's that one. All right. Now onto the biggest loser. Let's go in reverse order. Let's start with the winner of the winners.

Kristen chose AMC. The reddit choice. Oh man, terrible decision. Roaring felines everywhere [00:28:00] down 14. 93%.

Peter Dunn: Oh, that's not bad. I mean, what Thunder nuts, whatever his name, what was the guy's name? Roaring kitty. Is that what it was? Yeah, I don't know. He got back involved. I don't think it was Thunder nuts. And so I don't I regret that.

Yeah. Okay, minus 14 for Kristen

Damian Dunn: just updated minus 15 percent for Kristen. At this point, the

Peter Dunn: more you talk

Damian Dunn: about that stock, it really is a meme stock. We talked about it on a, yeah, I'm the new thunder nuts. The power there's a t shirt for reunion coming just so you know. Okay. And then you're next. I am next.

I had beyond meat. For not only business, but professional and ethical reasons down 14. 98%. So Kristen and I right neck and neck with with our losers at this point. You chose Beyond Meat for ethical reasons? Because there's, nobody should have to meatless meat. [00:29:00] Oh, you know, salad reverse from what I was thinking.

Oh, no, just, you know, yeah

Peter Dunn: I, I didn't realize that was the setup. I just,

Damian Dunn: oh, dame. And now we come to the loser of the winners. Peter done. Is it the winner of the losers? Oh, but I lost the winner. You've lost the winners. Yeah. Keep up. You chose big lots for your loser. Well done. They're down 74. 6 percent year to date.

This is where we both feel guilty for cheering that company's demise. Now this sounds

Peter Dunn: a little gross and I'm sorry. But since they're struggling so bad and and that it generally leads to to shrinkage contraction There's a lot of opportunities at bluebird buses, you know what I mean? So yeah I know big lots isn't a dollar [00:30:00] store That's not exactly what they do, but I the demise of dollar stores has been wild

Damian Dunn: Dollar generals are nuts up in my part of the part of the state.

So I, I think it depends on maybe some, some region specific stuff, but dollar general is going strong and I don't know so much about like dollar tree and whatever the family, family dollars at the other one as well. But I, some maybe struggling dollar general is. Not doing so well stock price. I don't know what the stock price is, but at least their market presence is not suffering at all.

Peter Dunn: Is that a sort of store you would go into for this or that? Because you know, they have this or that dollar general. Yeah. Yeah. Just went to one last night actually. What I, again, you know, Oh, Pete's out of touch. Yes. I know. What is, what is

Damian Dunn: at a dollar general? All sorts of stuff. There's a limited amount of grocery items, but they've got coolers as well.

So you can get, you [00:31:00] know butter, cheese, cold meat milk maybe some, some juice, frozen foods, things like that. Then they've got household items laundry, the detergent, toilet paper they've got cards. They've got, I mean, it's, it's, it's like a very shrunken down grocery store at that point.

It's, it's They're super convenient. And for some reason, at least in Northeast Indiana, the people they hire there are consistently some of the most polite people you will ever run into. There you go.

Peter Dunn: I don't know any of these things. Yeah, that's nice to hear. All right. S and P five. By the way, Kristen joins us in Facebook live.

She just couldn't make it in. She tried. She must've tried. She totally tried to make it on the live stream and couldn't. I love it. That's not true. She's the day off. Dame, tell me more about our S and P 500 picks. We had a range of picks

Damian Dunn: this year, just like we did last year. Would you like me to give the picks and then what the S and P 500 is right now, or should I start with the S and P 500 [00:32:00] results and then go through the picks?

Peter Dunn: Give us what the S& P 500

Damian Dunn: did, and then we'll go through the picks. So far, year to date, S& P 500 has returned 16. 48%. Let's call it 16 and a half. Okay. To make it simple. I chose a 6 percent annual return this year. 6%. I. I may have undershot a little bit, but coming into an election I'm not convinced that we won't see a little bit of pullback in the S and P 500.

So 6 percent was where I'm at right now, wild off, but I'm not losing. Oh, well, Not losing hope on that sounds a little See I told you this is yeah That was a little bit more challenging than I thought it was going to be. Kristen, chose eight percent. Okay, pete You chose fourteen percent So that means if you're keeping score at home Fearless leader peter dunn is [00:33:00] leading two of the three categories while kristen is handily cleaning up In the other one hear

Peter Dunn: my roar kitty I'm the new The guy there.

I don't think that's what you called yourself earlier was a misnomer. All right, let's do this Let's take a break coming back after the break I've got an amazing biggest waste of money that we like truly one of the dumbest things i've ever seen in my life Which is how the segment works? And then The news all that's next the last week ever in this studio this radio studio, which has held my voice for five years Next time you listen to the show.

I will be in a new space How exciting for me. We'll be right back.

Oh, what the heck, man?

Dude, we are shooting through the show fast. Everyone, it's a fast show today. Yeah, sorry. I literally got to tear [00:34:00] down the studio. By tear it down, I mean, I'm going to burn it like there's a spider on my face. You don't have to take the wall covering off, do you?

Damian Dunn: What was the question? Take the what? You don't have to take the paneling off, do you?


Peter Dunn: no, no, no. I'll

Damian Dunn: let the next. Maybe they want a background for a studio. Maybe. Our new space is unbelievable. Is the new recording space going to be set up to have multiple people or is it just going to be a single, single person?

Peter Dunn: It's my, we're combining my office with the studio and so it's just going to be just me.


Damian Dunn: Just you. Just Jack. So if I come down to record something, I won't be able to because it's your office? Actually, you could do it in one of the room

Peter Dunn: pods. Oh, okay. Which are ventilated with extra quiet fans. I'm telling you. Will they have sound treatment in those pods? Oh, they are born for sound treatment.

Oh, you can do voiceover work [00:35:00] on them.

Damian Dunn: So it was like when we went to Chicago and we saw that one. Okay, nice.

Peter Dunn: Come on. All right. Supreme court looks like they're busy here today as always, or

Damian Dunn: I mean, a few times a year.

Peter Dunn: Yeah. A couple of times a year. Okay. Let's get started. And three, are you ready? Yes.

Three, two, this week's biggest waste of money of the week right here on the Pete, the planner show is, is.

This man, this is the Frank Mueller by S. T. DuPont master lighter. It took two years to design. It has a wait list. It can tell time and it can light your high end cigar. It's Swiss hyper luxury watch manufacturers, Frank Muller and French luxury brands, designer [00:36:00] S. T. DuPont master lighter, a play on the former's brand tagline master of complications, which references the complexity of the limited edition time pieces they do produce and eventually release to select clientele.

This release is doubly unique too, given it's a double flame cigar lighter housing, a colorful skeleton watch with a three day power reserve and the brands over the top and impressively colorful signature. Okay. So for those that are not good at imagining things, it looks like a Zippo lighter. But without the rounded casing, definitely a squared off casing, like a little pillbox rectangle thing.

And on the face of it, the broad face. Is an embedded fine time piece. It just looks like a watch. Like if you were to put a bands on either side, so it's like a, a, a luxury time piece in [00:37:00] the side of a lighter, a functional lighter, Dave, that I described that

Damian Dunn: well, yeah, I think so. I, the, the case itself looks like it has a, like knurled finish to it.

So, I mean, it's, it's textured. It's, it is a highly produced product. Equipment.

Peter Dunn: All right. Well, Dame, if you were going to buy one of these, how much would you need to take to you at the, to the dealership?

Damian Dunn: I'm glad you didn't ask what I would pay for it because it's going to be wildly different than this.

I mean, you're combining high end watch prices with arguably some are a contemporary art. On top of that, 25, 000,

Peter Dunn: 56, 400 only missed by half, man, that is wild. Kristen would have guessed worse. So that's all right. That's true. And she knows it. Dame what's

Damian Dunn: in the news this week. [00:38:00] Pete, I could do almost an entire news segment around Amazon stories.

Dare I try and pull this off? As a shareholder, yes, please go ahead. Only if they're positive. Have you ever wished you could buy stuff on Amazon that's even lower quality and is filled with more microplastics? You're in luck. Amazon has decided it's about darn time. It reminds Timu and Xian who invented e commerce.

Sure, it lowered seller fees for some products to better compete with low cost e com players. But with its latest effort, Amazon appears ready to let the Chinese discount retailers know who's boss. The information is reporting that Amazon is about to launch a separate store for ultra low priced apparel and home goods.

How does it plan to keep prices down? You guessed it, Pete. Inventory will ship directly from China. Currently, Amazon requires Chinese shippers to get merch to the U. S. before distributing it, and that extra step is expensive, and the reason that Teemu is eating its lunch. According to the leak, Amazon is planning a launch event on July 5th in [00:39:00] China.

Peter Dunn: Team it has been Brought up that I'm out of touch. I've never purchased anything from Shein or Timu, but I know people talk about it. I don't quite understand it. Have you experienced either of those sites? And so what I'm hearing is it's like an Amazon, you buy something that just, and people talk about how cheap and they're knockoffs, whatever.

I don't, I don't know. And then what you're, what you're saying, what I'm hearing is it ships directly from China to your house. Yeah.

Damian Dunn: There's going to be no veil of like, no, this is really good stuff. No, it's, this is stuff directly from China, cheap price. You're getting what you pay for

Peter Dunn: him. I knew things made in China get here one way or another where they get over here in bulk and then they are redistributed by someone else.

Somehow it seems strange and inefficient to ship things individually. It seems like that would be more expensive. No, I would guess, but apparently no. All right. [00:40:00] Amazon story. Number two,

Damian Dunn: Alexa. Sorry. Sorry. If everybody's got those in their, their devices you know, who, how can we get even fewer people to use you?

Amazon's got a crazy idea. How crazy? Actually, it probably won't work. According to some snitches on the inside, who will probably be drawn in quarter by Andy Jassy once they're found out, Amazon is planning to make Alexa a paid subscription product. Thank you. Good night. Users would be able to choose from one of two tiers with the quote elite version of the voice assistant coming in with a Guessing game pete.

How much would you have to pay for the elite version of you know who 9.

Peter Dunn: 99 a month only five dollars Oh, what's the other one 99 cents? I don't know. I don't think this is a terrible idea Horrible idea. We will unplug hours immediately.

Damian Dunn: I don't, I [00:41:00] haven't adopted voice control or whatever you want to call it.

I quite nearly to the extent that I think you have, I mean, you, I think like you've, you've told me about how you use voice, I think control for your fire devices at home or whatever. I don't, I just, I couldn't tell you the last time I've used voice control. So this has zero impact on my life. And the fact that I would have to pay 5 for the privilege to not use something is ridiculous.

Peter Dunn: I'll just last week. I said Alexa play 93 WIBC, which is our flagship radio station. So I can listen to our show. While I'm at home doing nothing I also use Pandora that way. Mrs. Planner and I love the celebrity net worth game where we're watching a show and we'll pause the show and I'll say, what's Mark Ruffalo's net worth?

And then she'll gas and all gas and I'll go, Alexa, what's Mark Ruffalo's net worth? And then we go, we go [00:42:00] fall on high five. And they were like, Oh yeah, that's that's what we use her for.

Damian Dunn: I wish you could just pull up your phone and Ask the other person.

Peter Dunn: Yeah, it's, it is, I'm, I'm, other than playing music effortlessly, which again, it takes two more seconds to do it on your phone.

I just, I I don't understand why anyone would pay for that.

Damian Dunn: Yeah, don't. I don't get it. I think somebody is potentially over overvalued the worth of their service. And do you have another Amazon story? I do, but it stinks. And so we're going to skip that last one and we'll go with something that I think will provide a little bit of discussion for amongst us at the end of it.

There's a new 5 meal on the block, but this one doesn't involve a cutesy jingle or a footlong sandwich. No, McDonald's rolls out its new value offering this week, aiming to lure back cost conscious customers who turned away from the chains amid. Increasing prices. The deal includes four items of McChicken or McDouble, four piece nuggets, small fries, small drink.

But we'll only be [00:43:00] available for one month. Why are they doing this? People aren't flocking to the golden arches like they used to. McDonald's missed sales expectations in Q1 pretty badly, but it's also battling a perception fueled by viral social media posts that the once reliably affordable chain has gotten to expense of McDonald's is hoping the 5 meal will bring back customers.

So much that Coca Cola has contributed 4. 6 million to subsidize the promotion after some franchisees said it would eat into their profits. Racing to the lowest price, McDonald's may be the largest fast food chain by sales volume, but it's competition tougher than the day old fry. Last month, shortly after Bloomberg reported the chain's intentions to bring out the deal, Burger King debuted its own 5 meal.

Wendy's dropped a 3 meal and Starbucks jumped in with a 5 coffee and pastry combo. Pete, the new 5 deal from McDonald's, an old school 5 footlong or five from five or five from Arby's circa 1994. What is the go to? Oh man.

Peter Dunn: And, and out of respect to my father, it's the five for [00:44:00] five at Arby's. My dad, he used to rock that all the time.

Dame, you, you have to choose a true classic fast food burger order. What and where? Classic? Well, it can't be, it can't be like five guys. It has to be one of the real GDs.

Damian Dunn: It would have been, if I'm going back to like high school time, it would have been Quarter Pounder with cheese fries and a shake from McDonald's.

Peter Dunn: Yeah, I I was a Big Mac guy for a super, super long time and then I moved on to the QPC. And it's with that. No one cares. All right. Next time you hear these golden pipes, they'll be in a new studio. Should you care? No, you'll probably just complain about how tinny the room sounds. Any good vibes? Cause good vibes are all that's in the budget.

I'm Pete, the planner, and this is the Pete, the planner. Show. All right. I did pause pause Notifications and slack and I just want to see how many are built up right now Seven, that's not bad. Yeah. Well, I'm just saying [00:45:00] my the slacks I get are more intense than slash Every slack that is sitting there right now is gonna take me 30 minutes to deal with I guarantee it That's the nature.

Oh, dame. We did it. So this is it studio.

Damian Dunn: Yeah,

Peter Dunn: fun fun. We got this space in July of 2019. Then the pandemic happened and then yeah, we've been back. It's it's fine. It was good. It's looking a little dated in terms of. You know what, what the kids are doing.

Damian Dunn: I mean, I basically have the same background with the wood.


Peter Dunn: it looks

Damian Dunn: good

Peter Dunn: though. Like mine looks dated. Yours looks really good. And you got the Buffalo paint. That's true. Yeah. Okay. I feel like there's something I've been meaning to tell you and I don't remember, no, no, no, no show next week. Did we say that already? No show next week. Stay away from fireworks.

[00:46:00] They're a waste of money and they'll just go into your eye.

It's true. It's both are true. All right, everybody stay getting money.