082 Terry Savage: Financial Realities Right Now
About Fun With Annuities Episode #82
Welcome back to the mic Terry Savage for Fun With Annuities episode #82. I reached out to The MoneyLady®, Terry Savage, to hear her thoughts on the current market environment and her predictions and advice on how people can navigate these volatile times. I always kid Terry that she's forgotten more about the markets and money than most people will ever know. This podcast proves, once again, that Terry is financial royalty when it comes to providing sage and sound advice. If I had a choice for the next Chairman of the Federal Reserve, it would be Terry Savage, and I'm not kidding.
One of my favorite nuggets of advice Terry shared was, “Good judgement comes from experience and experience comes from bad judgement."
Terry and I dove into the current concern over inflation and the argument over whether it is transitory or sustained. She also weighed on how inflation will impact your future and the power of a properly diversified portfolio over the long run. Terry warned of a possible doubling of your heating bill this winter and that higher gasoline prices will effectively wipe out most consumers' disposable income while impacting the cost of "everything trucked."
The MoneyLady® had good news for seniors that receive Social Security annuity payments because the next 5.9% COLA increase will be the highest in almost 40 years. Terry also warned people of a coming "bond trap" for people hunting for yield at all costs.
Finally, Terry addresses what she calls "chicken money." That's the money you are holding in cash or money market type accounts, and she believes you might need to address all of that cash you are holding and put it to work. Enjoy the podcast!
Celebrity Co-Host Bio: Terry Savage
I have spoken with Terry for years about annuities. She started her career as a stockbroker and became a founding member and first woman trader on the Chicago Board Options Exchange. She was also a member of the Chicago Mercantile Exchange's International Monetary Market, where she traded interest rate futures and currencies. She now serves on the Board of Directors of CME Group, the Chicago Mercantile Exchange parent company. She has also served on the boards of McDonald's Corporation and Pennzoil Corporation.
Her Friends Talk Money podcast snagged a spot on US News' Top 10 List, and she is also the author of four best-selling books on personal finance, including her most recent book, The Savage Truth on Money. The first edition was named one of the top ten money books of the year by Amazon.com.
You can check out her Q&A on her "Ask Terry" blog at www.TerrySavage.com or follow her on Twitter @Terrytalksmoney, her Terry Savage YouTube Channel, on Facebook at The Savage Truth on Facebook and LinkedIn.
PS- Click here to catch her first episode with FWA "058: The Moneylady Terry Savage Holds Nothing Back."
In this episode, The Annuity Man and Terry Savage discuss:
- Is inflation going to be transitory?
- Getting ready for a collapse
- The Great Resignation
- Technology’s effect on markets
- We have a lot of components of permanent inflation being injected into the economy along with the shortages of goods.
- No one knows for sure that a collapse is coming - everyone can be a little right and a little wrong. But it’s better to be ready and disciplined than to be very wrong at the very worst time, losing all your ability to adjust to the change.
- We not only helped people who are needy but we incented them to not go back to work. COVID is still out there and people are now more afraid to go back to work.
- Technology has allowed the economy to be less volatile, improved the market’s liquidity and allowed better raising of capital.
- Decide who you are. Know yourself and understand the place in history where you’re at right now and recognize the risks, the upsides and the downsides.
Fun With Annuities® Podcast is hosted by America’s Annuity Agent®, Stan Haithcock, The Annuity Man®. Hear brutal annuity facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Author of 7 books, Stan dives deep on all annuity types and strategies. It’s fun, learning the contractual truths on how annuities actually work and if they’ll fit your personal retirement lifestyle.