Mark Falter, Retirement Income Hour | 9-10-26

0:00for the next to at least some of your listening to Mundo in the morning on 95 7 FN K C M O talk radio. Well, we got some breaking news here. And it is tied to the interest rates. Here's what just came down here and then we'll get to our guest who's an expert of course on this topic and much more in the financial space. The August P. P. I inflation hit 5.4% above the expectations of 5.3% core PPI inflation rose to 4.6% the highest since June. So July's headline and core PPI inflation numbers were also revised higher. So it would seem to me Mark falter our next guest mid America wealth advisory here in Kansas City host of the retirement market. So we're going to be

1:00on the market. So we're going to have a few more. 7 and 9 on Saturday mornings and then again 9 o'clock on Sundays here on K C M O. It would seem to me Mark that the odds of rate hikes are rising on this news. What's your read on it? Yeah, I wouldn't thanks for having me on again Pete. I agree with you. You know, they met in July and they held rates. They're going to meet the market. They're going to be on the market. So I think they were going to raise stats but 60 percent chance that they were probably going to raise. And now I'd say that percentage chance went up to ever so slightly. So I'd say there's a good chance they will raise the guy. You know, the flip side of that's good news is the economy is doing good and that's kind of what's driving inflation, but you don't want to be in the market. Yeah, there is now. Let me see here. I just saw it on the polymarket. Looks like there's at some point an 80

2:00percent chance of a rate hike by the end of this year is what they're projecting on polymarket. So what does that mean then? As people are driving to work right now. If there's a chance now of an interest rate hike from the Fed coming up here in the next as soon as few weeks, what does that mean you think for people as they get to work right now? Well, I'll tell you there are two types of people this affects raise rate hikes are a two sided coin. One one the one the side if you're retired, you don't have any debt. You're liking a rate hike on the other side if you're young and you've got bills and interest rates and you're borrowing money you're not loving interest rate hikes because it's the opposite side. So it depends on which group you're in, but I would say that you're in a state of particular way. So you know, we're going to probably see eventually mortgage rates go up over this. If you've got a mortgage good for you, you know, and over

3:00the next six months, we're probably going to see rates increase with retirees though. I think I personally and I might pick off a few bankers by saying this I wouldn't be buying a CD right now. I would be putting my money in a I'll tell you where I put it is bill BIL is bill BIL and it's treasury bills. Heck, you can get still almost close to four and it's liquid. Most importantly, it's liquid. And with this rate hike, we might see that go up a little bit. I don't know. That's been that's been the same for quite a while, but at least you're getting a decent 4% maybe not five like in a CD or whatever they pay now, but your money's not tied up because in this type of environment, you don't want to lock it down. You want to have the ability to move to something different. That's my thought. Well, you mentioned mortgage rates. I'm sure you've just seen some of the headlines. I just want to get your 35,000 foot view on this that the administration is exploring portable mortgages, which would allow homeowners to transfer their current low interest rates and low balance to a new property instead of getting a new loan at today's higher rates. Is that is that in any way practical? Or is that a pie in the sky idea?

4:01Oh, I think it could. I am. Could it be done? Yes. I think it's going to be harder than you think. I would imagine that the banks might lobby to. They're not going to like business. They want you to bar up the new current rates. But again, I think it would be killer. Oh, man, I'll tell you what I still run into people. There's a lot of them out there actually. They have two and three quarters and three and a quarter and I'm like, man, I wouldn't let that go. You know, and because you can invest in like I just said bill and make more than that in arbitrage. That would be a very cool thing. It would be a very, I tell you what it could do. If we slowed down on real estate sales, that could push it over the edge and cause people to start making moves. If you could carry old loans in the new mortgages, that would be very cool. I mean, people are handcuffed by a two and three quarters mortgage rate. I mean, you're not going anywhere to your point that I mean, unless you have to be nuts to give that up. So you're what? Yeah. If you ran the numbers, I ought to do a show on this.

5:05You ran the numbers of a young couple that had a $400,000 home at say 3% and they were going to sell it and buy a new home, $500,000. That's closer to $55 and a quarter, even with they better have a lot of equity in that old home. If they don't have much equity, that you're talking to $750, $1,100 a month difference in payment. There's a lot of people getting that can withstand that, you know what I mean? Yeah, no, that's a great point. Mark fault the retirement income hours here on KCMO. All right, let's touch on the age range, the age group 45 to 65 year olds in Kansas City right now. I mean, there's a lot that goes on with that age range, right? You got your own savings. You're trying to play sometimes catch up on. You've got kids getting ready for college. You've got potentially aging parents. You're working through what's your message to that age group? It seems like that's a obviously growing population and there's a lot that needs to be done in those 20 years. I'll tell you what, I was kind of getting a little bit ready. I was up early this morning getting ready for this and I was looking up some statistics.

6:10You know, you pull stuff up on AI and you're like, are you making that up? So I went over to the internet and double checked it. I actually did not know this until about two hours ago. I was utterly shocked that if you are in the United States of America and over the age of 40 or 45, one out of two of you are in the sandwich generation, 50% of 45, I think 55 year olds are in this my executive assistant is. And we were for quite a few years until my wife's father passed away, meaning still for those who don't know what that means is you've got children that you are still caring for. Be it college, be it high school, hopefully not little three or four year olds unless you inherited a grandchild. But then you've got parents on top of that that you're needy or needing to try to help or try to have them move in with you. And it would also be interesting to see and I'm not saying it's to be funny. I would also be interesting to see what percentage of them end in divorce because I can I can't imagine more pressure than that on a marriage, you know, having both coming from both sides.

7:19But there's a lot of them out there and I'll tell you again, if those people are looking to change interest rates on a mortgage, probably not the best time in life to be doing that because that's the last thing you want to do is enter financial stress into that scenario. It's a stressful scenario. Yeah, last thing Mark on the this time of year is oftentimes just a bit of a roller coaster in the markets historically September, October never mind leading into a midterm. What's your advice to people here as we go through the next couple of months here? I'll tell you what, I have been kind of talking to a lot of 55 and 60 year olds through these are the people that are three to five years away from retirement. And they're enjoying this ride because they're making up for lost time. The markets on the long run. I mean, it's been on a long run for a while, but the concern they've all got is what if this is 1997 1998 all over again. And I think that's a concern that they should definitely consider because it's a lot of indications saying it could be and at least start looking at some things that have a still you know, still continue with the upside of the market, but has some buffers on the downside.

8:29I've been talking about that on our show with we call it the retirement danger zone, the five years before in the five years after retirement. And boy, that's the last time you want to get a serious hit like we had in 1999 with a 30 40% mark a drop. Now your age group, a 30 to 40% mark a drop man double up on your 401k. And but for that age group, go right there about ready to switch from growth to income. And that's a real dangerous time. So I've been talking about a lot of options that actually secure the downside, still maintaining some of the upside. So yeah. Wow. Yeah, there's a lot that obviously I know you'll be getting into on this front. People need to be locked in Saturday mornings, seven and nine retirement income hours. Sunday's at nine Mark falter mid American wealth advisory group here in Kansas City. Mark always a great stuff. Thanks for joining us this morning. Lotta news and we'll be tuned in. Thanks so much. Hey, thanks. You bet. Mark falter. Great job on KCMO talk radio.