Logan Gilland 8-4-26

Meet Keith, Loving Dad, board game champ, bus driving pro. I drive 65,000 miles in my bus each year. If people knew what I know, lives could be saved. Like how there are some things I simply can't see. On my route the other day, a car tried to sneak past me and ends up right in my blind spot. I turned slowly, so accident avoided. But no car should be in the blind spot for a 40,000-pound bus. It's our roads. It's our safety. Visit www.sharetherroadsafely.gov. And right now we have clear skies. I don't believe it could be any prettier. I don't know how, Logan. It's absolutely beautiful. It's wonderful today. This morning got me excited for football season. Like that kind of little bit, it wasn't crisp, but a little bit, you know, kind of nice air is wonderful. And I've always said once UK plays that first game, boom. It's Christmas. Yeah, that's true. That's a good point. The last three months of the year are just boom. It flies by. And the first three months of the year are. Oh yeah, that lasts six months. Once is going to be over. You know, isn't it true? It's very true. All right. Good morning, good morning. How well, yeah. We have our really good friend, Logan Gillen, in twice a month for the entire hour, and then he's on call. That's right. That's right. I love it, though. That's one of my favorite parts of the job is to make sure people know what's going on in the world. Well. I missed a text from you the other day because we had that horrible day last week. And then we had everything kind of came back. That's right. And you texted me and said, I'm glad to talk about how much better everything is today. And I missed it. I apologize. That's okay. That's okay. We can talk about it this morning. It has gotten a lot better since last Thursday morning when we talked after a really rough Wednesday, the worst day in the stock market so far in the year. And it's been straight up to the right since then. It's been a really fast recovery. It's been a really strong recovery for the most part. I don't think people should unbuckle their seatbelts. So I've been writing about the, hey, I think we're going to have some turbulence. We're going to be really going through the ups and downs for the coming weeks. And I really think through the end of this year. So I don't think it's time for people to go, oh, this is over. We're out of the woods. Everything's going to go back to highs and I'll be okay. I definitely don't think that's the case right now. But we will take... a really good couple days in the market when we can get it. And we've certainly had that over the last Thursday, Friday, and into yesterday for sure. It went so low. It was such a crappy day. Was it Wednesday last week? That's right. Yep. Why? It was something to do with the national news, I bet. That's right. Well, there's multiple things that are happening behind the scenes, and it was a little bit of a perfect storm that happened on Wednesday. But the biggest market-moving news was the Federal Reserve.

and we got good inflation data. So that kind of ran under the radar without all the other news, but there was an inflation number that came out on Thursday of last week that was better than expected, meaning lower inflation, and the markets rallied on that news too. particularly in the area that's been hurt the most over the last two or three weeks, which is technology. Technology has gotten hit really hard. If you look at the technology sector, it was down about 12% as of the end of day on Wednesday. And it's rallied significantly over the last three days. Now it's only down about 6% from all-time highs. So it's basically made up half that ground that it lost. And it's rallied significantly on the hopes that maybe with positive inflation data, strong earnings, a strong AI growth and investment, that this market will be okay and will continue to do well. We don't know. I think we're going to still see a lot of waves, a lot of ups and downs. But that's what's driving the market right now. And I think the number one thing that we will be talking about is interest rates in the Federal Reserve over the next four or five months. We have a syndicated program that's on all night called Red Eye Radio. And I'll listen to it on the way in the morning. And this one guy was talking about one of the hosts. that he, his doctorate. Start your day with the morning jolt of Drake C. Toll. See, now it's on demand. My podcast is kind of a radio thing, I think, but also it's a bit of a TV show, and it's about whatever I want it to be. It's listening live as it happened, when it happened, with the instant reaction. You're home for talking sports. We go back, the Drake Toll Show, Westwood One Sports Network, and there will be on demand on your radio. Anywhere in the country, I'll see you there. Westwood One Sports Talk. Your home for Drake C. Toll. Follow and listen. on your favorite platform. I told him I'm going to be moving to a new location or to another organization. And he said he got busy and had some family issues and just wasn't paying attention. Then realized, hey, I got a prescription. I need to have refilled and he couldn't find him. Okay. And so he went, AI. And he asked AI and AI told him, hey, it's right next door to where your doctor was before. So he goes over there. It's only three miles from his house. Yep. And there's nothing there. Oh, okay. So he asks AI, what is your source? And AI says no source. Oh, interesting. So in other words, don't believe. everything you read on AI. Oh, for sure. For sure. Yeah. Yeah. No, AI has this thing. The word they call it in the industry is hallucinations. Yeah. And we were talking about it. I brought that up to our Kentucky Tech Nado, James Mason. And that's exactly. We was talking about hallucinations. Yes. Complete that thought. That's really interesting. Yeah. So a hallucination by AI is basically it's saying something is real and it's totally not real at all. So I have seen this before.

And this is why I think AI still has a lot of time to develop. You still have to have really smart people behind it that are watching what the AI is doing, thinking about how it's thinking, and then translating that. So I asked AI a simple planning question one time, financial planning. So something along the lines of like, what should you do for an emergency fund? How much money should you have in an emergency fund? So money on the sidelines in a savings account. And it said something along the lines of, you should always have six months of an emergency fund in your bank accounts. And I was like, well, what if this situation happens? What if you have really stable jobs? What if you have a job that's not going to, you're not going to lose your job. You don't have any big expenses on the horizon. It was like, nope, six months of emergency fund. So there's no flexibility in that answer, right? I've also had things where I've said, hey, what do you think about this company? And it is just totally irrelevant. It will say, oh, well, the stock price is at $200 over the last week. And I'm like, no, the stock price is at $50 over the last week. So it doesn't know as much as you think it knows. Now, I do think AI is going to change a lot of the way that we live and how business is done. But you still have to have smart, wise people looking at it from a third-party view and going, that's not right. Yeah, like I watch a stock market all day. I know that stock's not at $200. It's at $50. James says that China has got a lot of guardrails on AI. In other words, rules. He said, of course, it's working its way around them. Sure. Figuring out workarounds. But it's the wild west in this country. And I'm a bit surprised by that. Why don't we have more regulation on AI? It seems like we need it. You know, I think it will probably come over time. I think there will be more development. I think part of it is the capitalistic nature of let's just see what this can do to a degree. So letting all these companies invest billions of dollars into it has been driving our economy. And of course, whether you're a politician or whatever it might be, you like that the economy is doing well. That's a positive for America. It's a positive for individuals. So that's part of it, I think, Jack. But I do think there will be probably some regulation that comes over time. To a degree, I think that they don't know how to regulate it. I think that's one of the challenges. China regulates it significantly for their individuals, their citizens, but China is using AI to basically monitor everything in their country. I mean, they are heavily monitoring. everything across the board. Now, they've done that for years, but now with AI, they're doing it even more intricately, watching what people are doing. And I don't think that's necessarily the answer either. I don't want that to happen in our country. So I think there will be regulations over times and changes that happen. But I think if you're an individual that's starting to use AI, you just have to make sure that when you're putting information in, the way I use AI is I give it a lot of information of my own accord. And I say, hey, what kind of tweaks and adjustments would you make to this? Now, we don't put any personal information of clients into this as highly regulated. But if I'm going to maybe write an article or write a piece, I'll have it.

grammar check me or look at some of that information. But if you just throw, hey, create this for me, it's probably not fully correct. Yeah, you want to be very careful. All right. Here's three quick texts from one person and I'll yell when it's all caps. Okay. Sounds good. Three real quick. We must stop this war. Okay. The Fed is private, and it controls everything, and we must get interest rates down. Yeah. Is you right? Or she? So these might sound as listeners that they are not connected. They're all very connected. So the Federal Reserve and what they're doing with interest rates is directly correlated with what's going on in the war. Because the war is causing inflation to be elevated. If we just think about what happens when oil prices increase, think it on the most basic level. I was talking to an intern. I had an intern in last week, Jack, and he was following me around. And I said, why does what happens in Iran matter for Netflix? So give me your analysis. Why would what happens in Iran affect the company networks? I don't know. If gas goes up for us, gas prices go up, and now I'm paying $4 a gallon for gas instead of $3 a gallon for gas, well, that probably costs me $25, $50 a month, right? That's extra money. That's extra money. I got you. That's extra money that I now have to spend. And now, because I'm spending that $25 or $50, the longer this goes on with the war. I start going, I can't have Netflix anymore. I'm going to have to get rid of that subscription. We're only going to eat out once a week instead of twice a week nowadays. I'm actually going to probably not take that trip because we're already spending a lot of money on gas. So people start changing their behavior because gas prices are elevated. That's one of the big issues. The second issue is if inflation is high, then interest rates stay high and that hurts the stock market as well. So it's multifactored. We're taking a break. Good stuff, man. 100%. Logan Gillen, Blue Spring, wealth management, 859, formerly Jewel, J-O-U-L-A, Juul Financial, 859, 253-5959, that's our phone line. And our Stuttgart Motors text line. Okay, you know the drill here, Logan. We've got just a quick kind of segment here. But I got a couple more questions. What happens if we go ahead and drop interest rates? People buy more and the economic engine takes off. Is that correct?

Well, yeah, so lowering interest rates is normally to stimulate the economy, to make the economy go faster. Why? Because companies can now borrow money for cheaper, which means that they could build a data center and it costs less for them to build it because they're not paying as much for the debt. I got you. Same thing with people buying a house. Now they can buy a house and it doesn't cost them as much for those payments. So it's very similar between businesses and consumers. The concern would be when you have an economy that runs hot or that is doing really well and expanding and growing, normally that leads to more inflation. The higher the economy is off to the races, normally that means people can buy more things. If people can buy more things, companies can raise prices. If companies raise prices, inflation goes up. So the concern would be if they cut interest rates now with inflation already hot, that it could be even higher inflation. And now you create a cycle of inflation just going off to the races. You're good, man. You're smart boy. We're going to take a break, get an update from Fox News, and then we'll be right back with Logan Gillen. Blue Spring is the name of the company. It used to be Jewel Financial, but now it's Blue Spring, but everything else has remained the same. And I can tell you that firsthand because I am a client. And right now we have sunny skies and 69 at your official weather station 97.3 FM, WVLKN 590 AM. Logan Gillen is with us. Blue Spring. Whatever you want to call. Blue Spring is the easiest thing, but wealth management. I kind of like wealth management. Okay. You're managing my wealth. That's right. Yeah. That's right. But, you know, you guys, not to make this like an infomercial, but I will a little bit. You guys, I've been with since basically day one with Quint Tatro. And, uh, What I was saying about back construction is true with you all. You've changed. You've moved. You're bigger now. Yep. but your commitment hadn't changed. It says same heart. I mean, that client developed in his basement. I think you were even around in those days. Oh, yeah, yeah. In his basement back 20 years ago, it has to be the same. And that's why we've grown and that's why we've done well. And I think the biggest thing for us, Jack, has been this merger. And it truly is a merger. No one got acquired or anything like that. The merger we did with this firm in Cincinnati allows us to have more focus on spending time with clients and serving clients.

And that's always been what we've wanted to do. So being able to do more of that is fantastic. Being able to translate more of what's going on in the news to people because I have more time has been huge. It's been wonderful. Okay. Here we go. More text 859-253-959. So people like me just don't buy interest rates too high. This is what this person saying. To me, the economy is... Not hot, can't do anything interest rates compounded is way too high. Now, I don't understand even for a second what the hell that means. Well, I probably am not answering this person's question whatsoever, but I do think there are parts of this economy, meaning there are a lot of individuals out there that are struggling a lot. Because I look at the data and the data says that the economy's strong and that the economy's still going pedal to the metal and everything's wonderful. But then I talk to people and there's a lot of people struggling out there. And that's part of the reason I think it's important that people know we're probably just going to have a lot of ups and downs in this market going forward because there's parts of the economy and individuals and citizens that are struggling a lot. And then there's other parts that maybe are the... high net worth people, highly wealthy, have had really good portfolio returns over the last couple of years that are spending money left and right. So there's a dichotomy between different parts of the economy right now. Is there an age range that seems to be suffering more than others? You know, I think there is not really, not really. There are parts like people coming directly out of college right now, I think are having a difficult time finding jobs with the new AI landscape that's out there. But I see struggles across the board in a lot of different places, especially depending on your income level. Because everything has gone up in prices, because it's hard to get into a home right now, if you're a young person trying to get into a new home, very difficult. Yeah, it's going to take years to save up enough. So there's people struggling out there significantly and lower interest rates would certainly help those people. But the Fed is in a tough spot. They're between a rock and a hard place where if they did lower those interest rates, It could help maybe buy a house, but it could also hurt at the grocery store or at other places with inflation that would go higher. So they're in a very difficult spot right now. And I think that's part of the reason for the last three meetings. They've just done nothing. And they've kind of let it settle and see how this market, how the economy. Mike Drop, hosted by former Navy SEAL Mike Ridland. How would you characterize your prowess? I'd say my style is that I just kind of outwork everybody until I get there because I'm not a quitter. It's just you. And that's yourself. There's everything else's team-oriented. The motivation, it was a sort of anger at myself for being weak. That ends up being the driving factor. That anger, that pride, that ego, I think it's a muscle. It gets stronger. When you take that voice seriously, you start to change your life. Mike Drop, follow and listen on your favorite platform. economy and how everything plays out because they don't really know which direction to go with some of the differing data out there for different places of the economy. What about this is again a text of bringing back simple interest?

You know what that means? So simple interest versus compound interest is basically saying, okay, if you have $100,000 and you have simple interest, it's 4% on the $100,000 forever, so it's always $4,000 of interest. Compound interest means that as the value appreciate, so let's say it goes the value of your loan or the value of your assets goes from $100 to $104,000, now you're charging interest. on that whole amount. I don't see that changing. I mean, compound interest for an investor is one of the best things in the world because now your money is making money. Right. So I don't see the banks changing. Making money while you sleep. That suits me. That's right. Exactly. And that's what the market does. And that's why investing is so important to keep up with inflation and to keep up with some of the difficulties out there. And that's why, Jack, this is a total detour, but something I'm super passionate about right now is helping. the next generation of our clients and of the people that we work with, whether that's their kids or their grandkids, get involved in investing, understand investing, understand their options for investing. Because getting those young people involved and interested in money is huge because they have the biggest benefit in that's time, is if they start now, they have the time of compound interest to let their money grow and eventually... be able to maybe retire early or do very cool things in their life because they started early on. This is from Roy. I always enjoy and appreciate Logan and how he shares his expertise. Now, my query, lowering interest rates is good for commerce, but has an adverse impact on savers. And from my experience, chasing yield usually is a penalty or has a is a penalty to savers because you receive a lower rate for longer durations and inflation is still there. Sure, sure. No, this is good. This is very good. And I really appreciate the comment from Roy. It's wonderful. It does hurt savers because... This economy, as interest rates go down, of course, your high yield savings accounts, your treasury bonds, your CD rates, all of those go down as well when interest rates go down. So that's difficult. Now, what the Fed doesn't control, they only control the short-term rates. That's important to know, is the Fed is only controlling what happens on the very short-term end of the curve. Basically, overnight lending rates for banks. What happens on the long end, like a 10-year treasury bond or a 20-year treasury bond, all of that is determined by the market. So it's determined by how overseas they think of our United States debt, how investors think of United States debt. And those rates have slowly trickled higher over time, which is great for long-term savers because they're getting paid more on their debt, but it is hurt bonds overall. And I don't want to go down that rabbit hole too much. But for short-term savers, yes, lowering interest rates affects them and hurts them, and it's unfortunate.

But at the end of the day, our country runs on debt. So that is what the Fed is looking at. They're controlling those short-term interest rates to go, well, what is a company like Amazon going to do if they take out a loan? Do they want to pay 6% or do they want to pay 4%? They want to pay 4%. So unfortunately, our country does sometimes hurt the savers that are putting money in a CD or in a high-yield savings account because they are so focused on what the debt is going on. And the government is the biggest owner of debt. So they're in involved too. I really like you, Logan Gillen. Well, I appreciate that. I like you too. I really do. You're good people. You really are. I want people to know that. You're quite extraordinary. Well, I appreciate that. It's a very big honor for you to say that. So dang smart, too. Well, I appreciate that very much. 859-253-5959. That's our phone line. It's also our Stuttgart Motors text line. Now, I'm going to let you talk for two minutes. It's going to have it all but first. Good morning. My husband and I are in our mid-60s. We have a sizable farm. What would be the best way to pass on this property? to our two children to minimize taxes and headaches. We are not in the best health. Thank you. Okay, good. So this is a good question. And there's a lot of ways, and I'm not an attorney, so I don't write documents. This is very important to notice. But I have seen a lot of people that start setting up a trust in order to pass things smoothly through. So this could be something like a revocable trust where the farm could go into the revocable trust. And then after you pass, it would then pass on to the children with the desires and wants that you have. Estate planning is a huge part of being a certified financial planner. We talk about estate planning all the time, although we don't write documents. So this is the kind of thing we would talk about. It's not cookie cutter, though. Nothing in financial planning is. So I would encourage you to talk to someone, probably a financial planner and an attorney, to have both perspectives. And those people can coordinate. A lot of the time we talk with the attorneys about, hey, this is how we should do things. But it's a great question. You do get a step up and basis on property whenever it passes on to the next generation, which is a big deal. So if you have a farm and it was worth... $100,000 when you bought it, and now it's worth $5 million when you pass away, the kids will get a basis. It's almost like they bought it for $5 million. So they could sell it with very little tax consequences. Oh, wow. So that's important to note. It depends on how your documents are written. You want to make sure that those are written correctly. Documents meaning wills and that. Wills and trust and all of that.

I have been on a kick right now to get beneficiary designation across the board on accounts so that things pass outside of probate and very quickly to who the money is supposed to go to. We unfortunately have had a lot of clients pass away this year and that has been a key, key point is making sure you have your estate documents in place, make sure you have your beneficiaries in place in the proper order. So I would encourage you to talk to someone for sure and they can help you set up the right things to get in place. And the more you can keep out of probate, I've learned. Yes. The better off you are. Yep. Probate equals time and money. That's what it equals. So sometimes things have to go through probate because it's passing through a will. But only things that go through your will are going through the probate process. If you set it up properly and you set up a trust and you set up good beneficiary designation, very little will actually pass through the probate process, which means less time and less money. That's huge. All right, let's see here. One more, and then I'm going to let you talk until we run out of time. Ask Logan about his banjo. Oh, about our puppy? Okay, so we have a puppy. His name is Banjo. This is a really unfortunate story, and I hate to put it downer on the end of our show. But our puppy that we had for a year, unfortunately started getting super aggressive. Started getting super aggressive with my wife and bit her multiple times. And unfortunately, we had to take him back to the breeders. And now he has a new home and all that. But my wife and I... I'm so sorry to hear that. It is. It's unfortunate. It's very sad. We are planning on having children at some point, God willing. And you don't want an aggressive dog. And you don't want to... Basically, we had trainers and stuff. They were like, you just can't have them around kids. What was... I'm just curious, what was his... He's a Bernie doodle puppy. So there's a Bernie's Mountain Dog and a doodle mixed and our poodle mix. And they... I don't know what the Burmese dog is. Bernie's Mountain Dog. They're big dogs. Big old dogs. But it is very unfortunate. It's been a hard time for our family. But we knew we want to have children at some point. We don't want to have to make a hard decision at that stage. You're right. And we figured this was the best path. And now he has a great home and he's doing well with a family that has no children and can, you know, care for him in a good way. Will you break in another dog before you have kids or will you wait? I think we'll wait. And I think we will have animals in the future. My wife loves animals. I do too. Our house would be a zoo if she had her druthers. I wonder why that dog was aggressive. I don't know. It's very unfortunate. It came out of nowhere. Truly, we did a lot of training. My wife was fantastic with that dog. And unfortunately, it just started being guarding of different things. really aggressive for certain things. Well, I mean, you did what you had to do. We did. It's very difficult. But it is, you know, that's part of life sometimes. All right. In conclusion, we have about two and a half minutes. It's all year. Okay. We'll appreciate it, Jack. So for those out there, I want to commend people.

Because over the last three weeks, we have all gained seasoning from this market. I mean, we truly have, whether it's Iran War or its earnings reports or its AI, like the ups and downs have been painful and we've all gained a fresh coat of seasoning because of it. And that's what being a long-term diligent investor is all about. So I really, for the last two minutes, I just want to applaud people out there that didn't make emotional, irrational decisions when the market was declining significantly. They held to their guns. You know, we're seeing a nice rebound here, which could continue higher or could. fall lower as well. And I want people to keep this in mind the last couple of weeks the next time we go through a decline, because it always can feel like this is it, this is the end, the market's going to fall apart, everything's going to go to zero. And so far in history, that's never happened. We've always come back. So I encourage people and I want to commend people for going through these last couple weeks that have been difficult. but they've taken in stride. They haven't made emotional decisions. I think having good financial plans in place have helped people to be comfortable and confident that, oh yeah, our plan is still in good shape, even though the market is going through a decline. So, again, I just take this time to commend people and say, you've done a really nice job over a difficult time in the market. So. Just don't push the panic button. That's right. Everything's going to be okay. Jack, you and I talked at the beginning, too. You can't get too high on the highs either. Just don't get too lows on the lows. Don't get too highs on the highs. A lot of people chased stocks when it was going up and they got hit hard. Most of our clients aren't like that. That's right. Always great to have you. Thanks so much. Thank you. And stay with us. We have an update from Fox News coming up next. We will be back here. And maybe about six, five central. It's a date. The U.S. Soccer Podcast. These players are battered and exhausted, but you don't hurt like this if you don't care about this team, about this country, about this game. You can feel the intensity, the goals, the energy that, wow, look at us. Here in the U.S., I have got some news for you. There's so much more to come. My name is Megan Klingberg, and we're just getting started. The U.S. Soccer Podcast, presented by Henkel. Follow and listen on your favorite platform. form.