Terry Savage: The Savage Truth about Rates & Markets
About Fun With Annuities Episode #128
I always joke with Terry Savage that when she walks into most rooms, she is the smartest person there. I’m not kidding. Throw gender out of the window because only a select few match her financial IQ. She is the ultimate trailblazer and icon for all women in the financial space, but her ass-kicking Chicago style is respected across the board by everyone in the world of money.
It was a pleasure to have Terry back on the podcast to discuss the recent FED rate hikes just a few days prior. She was around the last time her good friend, Paul Volcker, last battled run-away inflation during his term as Fed Chair from1979 to 1987. Current Fed Chair Jay Powell is also in that same inflationary fistfight, and Terry thinks he is doing a pretty good job at this point.
Let me go on record to say that Chairman Powell has surprised me and proved me wrong when I predicted a few months ago that he didn’t have the guts to continue these needed rate hikes. I’m happy that he is acting independently, just as the Fed was designed. I hope he does what needs to be done and ignores both political party influences in the process.
I pushed Terry to discuss current and future rates and what that means for you. She thinks the pain will get a lot worse before it gets better, and I, unfortunately agree. Both of us acknowledge that the lower end of the financial spectrum will once again get hurt the most, and people with the means will be able to weather this storm. But everyone is going to feel it.
I had to get Terry to comment on crypto and the overall markets at this point, and her unique insights are worth listening to this timely podcast. We talked about her “chicken money” strategies that are so relevant with over 10,000 baby boomers reaching age 65 every day looking for safe places to put their money. Terry’s “chicken money” is Stan The Annuity Man’s “contractual guarantees.” We are definitely on the same page regarding the part of your portfolio that has to be safe and never lose a penny.
Terry Savage is financial royalty and has been helping the public for decades. Let’s hope she never rides off into the retirement sunset on one of her showhorses. America needs “The Savage Truth.” Enjoy.
"The problem is it's not just financial inflation. It's emotional. It's in the DNA; it’s in the cells. And you don't have to be a Ph.D. economist; you can be an ordinary person to understand the impact. That inflation mentality is what has to get broken." — Terry Savage
Brief Bio on Co-Host: 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 Amazon.com’s 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 on 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:
- Preparing for recession
- The wildcard in economy
- The two most interest things in the market
- Living off of the interest
- People are not prepared for the kind of recession we might be facing. The Feds will not let the government buy us out of this recession, even though it's a political year, because of the mounting national debt.
- The wildcard in all of this is in employment. We haven’t seen unemployment go up yet, but there is a greater amount of people either quitting or soft-quitting, which is when people don’t quit but aren’t working that hard.
- The two most interesting things about the market are Bitcoin and gold. Blockchain, the technology behind cryptocurrencies, is going to revolutionize our lives, but it’s not going to be a refuge from the U.S. dollar.
- The goal is for you to never have to touch the principal and just live off of the interest. That’s the dream. Establish your income floor and see if you can buy products that will create interest.
Fun With Annuities Podcast® is hosted by America’s Annuity Agent®, Stan The Annuity Man®, and a Celebrity Co-Host. Hear facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Stan and his guests dive deep into topics such as annuities, finance, retirement, and so much more. It’s fun learning the facts and seeing if they’ll fit your personal retirement lifestyle. Thanks for being here!