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Full Show 12-31-15

Dec 31, 2015|

Full Show 12-31-15 by The Financial Exchange

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

I. I. This is the financial exchange we've Barry Armstrong. June 1 street stay on top of breaking business news and learn how to manage your money to help you towards a more secure future and now broadcasting live from the insurer mentioned John John studios it's the financial exchange with your host. Barry Armstrong. Welcome into the financial exchange. On this beautiful New Year's Eve day. I was I've I've never quite know what to haul. The day here's C yeah well it is New Year's Eve day New Year's Eve dad yes I'll go with that. But Barry Armstrong continues his southern vacation staying warm all the rest of us. Trudged through the beginning of winter with the ice that has blanketed. Much of New England now chucked out and Dale Hall in studio today and happy new year third happened he would at six teen. Believe where this year ago Gail I. I think back and I still remember like the millennium just like it was yesterday comito you know exit or go sixteen years ago that's artfully and tough one tough one. All right busy show we do have a full showed today we're going to be joined in a little bit by Susan Carey from the Wall Street Journal talked about some of the changes that. The big legacy airlines are making. In order to compete with the low cost carriers while it's gonna be joined by David Peltier from the street. Talking about a couple big American companies Boeing and board so you wanna get. Any of your stock talk information that is going to be coming up by a little bit later on today. I wanna start was in news from CNBC. And probably something that isn't very surprising to most people in that 2015. Point fifteen was the most difficult year to make money in seventy years. Since 19371937. You know when Warren Buffett calls it a tough year you know you're in trouble right. Yeah if you look. Or buffet having his worst year since at least 2008 right now at the big thing what makes this year I think so interesting to me. Is it's a year in which a lot of people lost a lot of money like 2000 they were everyone lost their shirt you are saying what do we do put it was a year where you look at the different asset classes that are out there whether we're talking bonds stocks real estate. Different types of bond with the talking alternative investments. Nothing really got any traction in a positive direction there was any one area that you could point to and say half I don't that I would be great. Well stocks are the best year break even today a meager 2% total return that's including dividends. But it still beat the long term bond short term treasury bills and commodities. Not a very good year like you said not the worst since 1937. Yeah I'd be beating just about it really. Again that 2% beats everything else that's out there and so you look at it. You say look bonds not really moving it all you're you're real estate market not really moving on terms of commercial real estate and so forth. It was a year really that I think was characterized. By a lot of stagnation and it it's something that I think is frustrating to a lot of people 'cause. In just about any year you can go out and say okay look if if the US markets are doing well I can go out look at emerging markets well that's clearly not the case this year. If stocks are doing well liked and I can find some places in bonds that are gonna have some good value formula that didn't happen this year. And if if nothing is going well qualified some alternatives that are tucked away the just don't correlate with the market well we saw higher correlations this year so. I think for a lot of investors that that is the sense I get in talking to people is. This kind of hear it it's very frustrating to them because. You can understand if there's a ten or 20% dip in the market and people say look there's you know there's nothing we can do their own bonds at least it well she can balance that data out but. But everyone is just. You know this this feeling that. We just couldn't really get any momentum in any things very difficult but 2016. Is better. I think the first half is going to be a little bit of the same actually I think it's going to be more of the same largely because you still have a lot of the same trends that we have faced. In 2015 that are going to be I think rearing their head in the first half of next year before we really see. What type of real. Economic development we have in the US again were close I think to potentially seeing some real wage growth but we haven't seen it yet we saw that one month back in October. Where we potentially started to move forward and then took a step right back. In November so. And until the data starts to turn there I think we're probably in for more of the same unfortunately I think you know a lot of frustrated people in the first half. Of next year one group that is not frustrated right now though. Fox News holding it's lead in a big year of growth for cable news. A big here now full disclosure my husband Scott Brown has employed by Fox News but. That as an aside a big year really for all the dues cable giants. It was the Donald Trump story and obviously you know leaving at the presidential election with the terrorist attacks on yup big story in Paris and San Bernardino. The Pope Francis is visit. That's a huge story out toward the for the news cable. Operate go to a 2 September I believe. It was the fall I'm not sure it's like with September yeah. It was huge. And a lot of people tuned in to see and hear what the Pope had to say and then of course. Everything that happened in Baltimore don't forget that. Oh yeah closer towards the summertime and I think unless that we had and I mean that was really really a huge news generator two so. For the fourteenth consecutive year Fox News lead in total viewers. One point eight million viewers now. The only cable network that got more viewers was ESPN which of course is sports and an amazing category. It's where I don't know people love sports it's a great diversion. Epic that is through a coming in are in second out of the major cable news networks. You let us see and then coming in with an average of 490000. Viewers are trailing fox by a significant margin there. And then bringing up the rear MSNBC only 352000. Consistent viewers there that's that average. We're really struggling and a number of different areas there and I think not really surprising. Anyone who's really tuned in CNBC you to. MSNBC recently. Well you know they changed their strategy a bit you know they've gone more to breaking news and news stories as opposed to a analysis and don't act one person that's everything use them. Well you gotta get breaking news on their mobile guy is that. Twitter eggs in like there's there's our race. Right there's that there are better ways to get breaking news today. Denton and trying to broadcast it on TV because when you talk about all of the production and asked to go into it in the cost associated with doing it to very expensive waiting to put out breaking news compared to the other options that you have where. What you could ever reporter on Twitter just put it out at no cost instead of having the Havel's satin everything he's. It's cheaper you don't want the driving forces in I cable news this year and certainly in terms of the kind of exposure they got. Was the debates. All out in 21. Million viewers for. On you know for the first of debate for Republican debate that's a huge number for a news event. Don't think I've we've initially at least double. What we have seen from previous early presidential graves here so definitely some big news there folks with only really what we have now eighteen hours twelve hours 24 hours last day of the year that's all that I know and a lot of folks have been asking us about gifting specifically gifting. To their children may be gifting to some other family members as a way to build. A comprehensive estate plan and there are a lot of questions that folks have when we talk about gifting specifically. People come and say look how much to idea of how much can idea of is it best to give money here's an idea other assets like real estate or stock is. What types of different things should I be considering. With the gifting strategies it's something that I do just once do why do it over a multiyear period. And I want people get pretty confused trying to figure out what is the best strategy. For their specific situation the good news is that pushing and Dolan has a completely free guide available to you it doesn't cost you anything to get it. All you have to do is call Cushing and Dolan at 866848. 5699. This gets you the free guide it's titled the guide to gifting assets is exactly what it says it gives you a comprehensive overview. To different strategies for gifting. All you do to get at call 866848. 5699. We're gonna take a quick break here on the other side of it we're talking about AT&T and how they are the last carrier. Moving to get rid of those two year contracts as well some news from apple paying an additional taxes. Overseas you're listening to the financial exchange from the insurer match dot com studios. Well you'll work. Keeping you up to date on all the latest market trends it's a financial exchange on the financial exchange radio network. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also given them your cost basis and that property this can create huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event that one of your adult children has creditor problems or goes through divorce then the old adage is that you can't take it with you -- inspires wealthy people the start giving assets away as gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family the right way called today 8668485699. That's 866848569986684856. I'm nine. If you're looking for a great deal on a new account or program issued check other zoo where rewards program that leader bank is now offering its checking account along with the companion savings account and as long as you qualify you receive three benefits first get a savings rate of two point 05 annual percentage yield on your first 50000 dollars all of your ATM fees from you and other banks will be reimbursed and you get 1% cash back by using your debit card and visa credit purchases just sign up three statement with the account direct deposit at least 500 dollars a month and do eight debit transactions per month co leader bank right now at 8776917900. To learn more about consumer rewards program that's 87769179008776917900. Member DIC equal housing lender zero point 20 annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presumably awards will learn zero point 10 annual percentage yield on savings balance. Very our chart here and it's time for your leader bank quick tip of the day we are joined by Jake to leap from leader bank and let's talk about zero this is something you invented it's fascinating yet thanks. Very so we created a product to leader bank called zebra and and what we created it for is really to help landlords. Convert paper process of collecting rain checks and make it electronic that we noticed a lot of wayward are still getting checks in the mail. They're waiting for postal delays or at least thereof their traveling abroad in the church sitting in their mailbox at home in. No cause a lot of problems so is you rent basically allows landlords to collect the rent on line electronically every month right in its auto recurring Solis who invite your tenants may sign up nobody asked him anything and you can make that a requirement that you just say to your new tenants look if you wanna rent this apartment this is part of the deal would allow a lot of landlords are doing is they're putting in at least ending you know we we suggest that you use the red to make your payments. And again what's it set up no one has the meeting the remainder at least right so the deal is is it's three differently in the or today with us cities have maybe to open up an account with a rent will be deposit absolutely free. And if they don't banquet there's a small monthly feet. Great. It's called zero rent and it's available exclusively. From leader bank night and go to their website which is he rent dot net www. He rent dot net. Or if you talk to somebody call 877691790087769179. Users here. Imagine you'd never have to wait for rent check to come in the mail it's automatically in your count on the first of the month. He rent dot net. Or 8776917900. Call 8776917900. Betsy rent. Exclusively available. From leader bank. Security suffered through securities America income member in re SIPC and advisory services offered through securities America advisors and Perry on our representatives Armstrong advisory group in the securities American companies are unaffiliated. Its financial exchange at your fingertips. Well. Yeah X 686. AB it's the financial exchange on the financial exchange radio network. Welcome back into the financial exchange Chuck Todd and Gail Huff in studio today Barry Armstrong. On vacation someplace warm some amazing. I don't like to think of that and I. I don't think that in that I'm Italian. Sunday sounds good to me that's just around my day kind of a cup a no was he knows he doesn't strengths and weaknesses that figure is not one of them. I our eyes EMI. Let's talk about AT&T here and specifically AT&T announced that they are going to be the last major carrier to stop offering their two year contract like that it takes along. I don't know now personally I'm a fan of the two year contract. Will because I'm someone who doesn't upgrade his phone unless he absolutely has to and I you're similar to yeah. Yeah I don't either I mean I'll wait wait wait until I absolutely have to but still the two year contract for a lot of people especially you younger people like yourself who. Are more technological yuppie involved and invested. I think bush is too long. Yup and I like to have it as an option at least that is what what eighteen to get done in the last year was they offered the two year contract. As well as the quicker I'll roll over plans we can within a year ago an upgrade your phone and things like that. I just like to have is an option to for someone like myself the two year contract can actually be cheaper. In certain cases when he's when he's stretched out over a longer period of time but. I don't know I would like to see them keep it I know they're they're probably discontinuing it because I'm probably dinosaur and I'm probably one of the only people who actually using it and it likes it. I am probably I mean with people being able to get movies now. On their cellphones and downloads that you couldn't do even a couple of years ago. I mean there's a whole opportunity for revenue out there on shore for all the areas that they weren't added with those two year crime there is. I always find it fascinating to do look at just how quickly the entire cell phone landscape is changed because remember the first iPhone. Which was really the game changer in terms of getting people in the Smartphones. First I only came out eight years ago and now 2007. Comic summer until I was seller with its. It's it's amazing think about it the things that we do now that we completely. Take for granted compared to before you talk about mobile video anytime you're watching you know a dumb YouTube video or something. You think about the apps that you have we're paying bills right on your phone which is pretty much how I handled just about all my affairs. It's it's it's unbelievable how much it is revolutionized how we interact with every one. Just eight years that I I'm surprised it's been eight its mind blowing but. Unfortunately the company that is responsible for a lot of that growth and development apple. Now has to pay about 347. Million dollars to Italy. Well. That's because apparently they were paying their taxes they are taking advantage of what many of these large corporations do and that is trying to get away from the high corporate tax rate there. It's about 30% in Italy that's known at the highest and so they set up the shell companies and other countries like block some or gore. In this case Ireland apparently up and that they get away from having to pay those taxes. And you have to figure that a lot of those countries in Europe that have been struggling with trying to remedy their budget situations. Are looking at big multinational companies like apple. Pretty much just you know grinning and saying OK what can we get out of them from from any type of tax maneuvers they've been trying to undertake because. One of those countries they are struggling still to try to get their budget anywhere close to balanced they're not there but obviously. Just trying to do something to lie get additional revenue and these big companies here pretty easy target. A very easy target evading taxes is the huge problem for. You know for government officials over in Italy in an already they've said McDonald's is next on. On their venue that they're planning on going after mcdonalds not specifically Italy but EU regulators set is a problem all over the European nation. It is it is and as you mentioned a lot of information coming out now that the EU. Has confirmed that they have opened a probe into McDonald's Corp. Specifically looking at what they're doing in Luxembourg there so it it continues to be something that I think we will see. Over the rest of really when he sixteen and and 27 team because the problems facing Europe. Are going away anytime soon now I'll tell you that much. We talked a little bit yesterday. About mobile payments and Gail you said that you you don't use any of the mobile payment platforms and Tucker you don't really use them. Either is that correct you know I actually tried to yesterday in the cashier looked at me like three had a sit in says apple a day ago. I was current users. Arrow to cast your configured out whole that's not a good sign they had apple pay where were like aren't just a grocery store. In any the cashier could not figure it out now and she was my age to. That's fascinating. Now I question how do you know when you go into a story accurate record yet they take apple is there sign or something we look to you look at the credit cards like pre swipe evening. And giving me yet. While we thought we yards reaping the bottom if it's the fact and then there's that just an apple logo on says Sanders tells it apple patent attorney. Yet it had no idea the other thing that you can look where there's a little symbol that is essentially associated with what are called these near field communications NFC readers which is what apple pay uses. And it's it's just it almost looks kind of like a Wi-Fi symbol. That's up there and it just shows you that this is as a terminal you can use for some of those services but. I use apple pay pretty frequently pretty much when I go to the grocery store. I used so you know at least 23 times a month. And you don't run into cashiers that rookie you'd like you have three that no I was actually I was picking some stuff up on Sunday night after I got back from Christmas. And the catch here is like I you know I'd seen more people using and actually love it and everything just because it's a much easier for me to have to deal with it's it's a simpler system so. Where I goes they've they've been a fan of it. They have a thing and especially with. You've seen the new credit card readers and a lot of merchants have installed yes as I've used that I am and you know that takes a little bit longer now you you know they have to leave the credit card in there for five or six seconds as opposed it just swiping. And I've had a number of caches that talk duke is a kind of get bored waiting in line side chat. Just about anyone up who's in the area and a lot of them are like look it's it's a pain for me is it just takes longer need you can tell customers are a little frustrated by it so. May just be able to say look here's my apple pain I'm in and out. It gets easier for me it's easier for the cashier to. They're frustrated because they had to pay they had to wait an extra five seconds that's a long time integration society might be right today's society that is. Time how and that that is a real money right there but. Apple pays going to be facing some pretty big competition in 2016. With financial companies such as chase as well as. Businesses. Retailers such as Wal-Mart looking to roll out their own mobile payments do you think that's going to be successful for Omar and and some of these other companies and it just seems like it's trying to out of there. You know out of their category I I. Think that there is going to be a lot of resistance to companies such as just Wal-Mart rolling out their own types of payment platforms and in particularly. Because if all you can do was buy stuff at Wal-Mart through. It doesn't really give you any use for anything that he gives you a bonus elsewhere so why am I going to use I just to make my life. You know more difficult a more complicated I think what I what I've seen in terms of the apps that have been successful in changing human behavior is they have to be something that you do every day. Okay it's you'd have notification and something you read every day. But if it's just something usual once a month when you go to Wal-Mart or something it doesn't drive the kind of adoption that app makers want to see and and I worry that that's what's gonna happen with the with something like Wal-Mart. I would think that something like eight now you know which you can news first or any care. On you know which would have a corner on a market like that. Yeah and that's were I think at the beginning continue to see a lot of competition from them PayPal also owns Ben Mo which is just appeared here. Cash transaction system which has been grown significantly the last couple years I'm a big user of vent you know but. I think this is going to be a space where. We see a lot of entrance into the market in the next year to trying to battle it out for. The revenue that's there but I think probably within a couple years you end up with just like you see in the you know the typical credit card space where it got Visa Mastercard discover and Amex and that's. Pretty much in terms your major guys right now. You probably end up with three or four that come out of this with the dominant market and they get adopted as the as the big guys in the space there right. So let's see what else do we have here our first trivia question yes let's do that will receive I can find our trivia questions and that put them somewhere here we go. We're doing Lord of the Rings trivia today and the reason for that is that this Sunday. January 3 it will be it would've been Jay our our poll in authors 124. Birthday. Okay so the first question we'll start off with an easy one here's to get every one. Get the juices flowing get everyone ready to go Texas at 68680. If you know the answer. And easy question to start off so he got to be first there's going to be a lot of the people that answering here. What is the name of the dragon and main villain in the hall. 68680. You're listening to the financial exchange from the insurer match dot com studios. Making your Smartphone even monitor Dell Motorola mobile lab by surging financial exchange joke in nineteen Jordan who. Who played Stewart this is the financial exchange radio network. Hi this is very Armstrong -- -- you own rental property you're gonna wanna hear about the six -- program offered -- -- -- it's called see rent and it's designed specifically to help landlords receipt and deposit their rent checks electronically as opposed to having to wait for the mail call -- bank right now -- -- -- -- in -- -- the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and will help you avoid the hassle of waiting to get it checked many landlords are suggesting that -- sign -- he -- upon the execution of their -- and why wouldn't you wanna do that once it's set -- you never have to make another change during the -- period he -- does that free service if you have an account with -- bank and if not it will simply cost too small monthly -- -- -- bank right now at 8776917900. That's 8776917900. -- red dot com for more information member FDI. Are you thinking about giving your home or medication property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also -- in the -- cost basis that property this can create a huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event that one of your adult children has creditor problems or goes through divorce then the old adage is that you can't take it with you and that inspires wealthy people to start giving essence always gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family -- right away call today 8668485699. That's 86684856998668485699. If you own rental property you're going to want to hear about this exclusive program offered by leader bank it's called zero and is designed specifically to help landlords receiving and deposit their rent checks electronically as opposed to having to wait for the male co leader bank right now if you're interested in zero and the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and we'll help you avoid the hassle of waiting to get a check many landlords are suggesting that tent and sign up for C rent upon the execution of their release -- why wouldn't you wanna do that once it's set up you never have to make another change during the lease period he ran as a free service if you have an account with leader bank and if not they'll simply cost US small monthly fee cult leader bank right now and 8776917900. That's 8776917900. Or go to zero -- dot com for more information. Member FDIC. Smart retirement planning is hard enough without having to keep track of what the IRS is doing for me -- year did you note that if you are self employed you can contribute up to 53000. Dollars in 2016 towards your retirement did you know that if you're single and you make more than 71000. Dollars or Mary making more than a 1181000. Dollars you can no longer deduct your traditional IRA contributions were you aware that there are income limits as it pertains to your ability to fund a Roth IRA this is very Armstrong and I made available a guide that details all of those 2016. Key retirement numbers and it's free to those of you call now 803934001. That phone number is 803934001. Here he suffered through securities America incorporated member can rest IBC an advisory services over the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are on affiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Interest rates remain stubbornly low and I'm not sure when they're going up on top of that not everybody wants to invest in the stock market hi this is very Armstrong and talking to my friend how we about the stock market and he refuses to consider buying stocks how he's conservative and only once investments that are safe and guaranteed that got me thinking and I found a three year guaranteed annuity that yields one point 95%. Per year for three years there are many types of annuities and some people think you have to type your money for ten years not true in this instance three years at one point 95% and then you're out with no surrender charges if you'd like earned one point 95%. Per year guaranteed for three years call our office at 803934001. That number is 80393400. What this is the best rate that I've been able to find so call now -- 03803934001. Principal and interest guaranteed as long as you hold your contract troubling for the guarantee period guarantees are backed by the claims paying ability of the insurance company. The financial exchanges on Twitter follow me right now act. TF and show this is the financial exchange on the financial exchange radio network. Welcome back into the financial exchange trucks on and Gayle Hoff in studio Barry Armstrong out on vacation. And we are joined now by Susan Carey from the Wall Street Journal. And as soon and I appreciate you joining us today. Good morning I absolutely have written a story on the legacy carriers challenging. The you it was kind of airlines town's low cost pose on fares and I was wondering if you could just give our listeners a quick summary of the article you. Well in the last few years the couple of very low fare airline mainly spirit and frontier have started to. Expand greatly on some of the major routes in the EU that. And these airlines offer fares that are like super cheap and then they pile on altered this piece on top of that. But their fares are very low and their costs are very oh and then big airlines have basically ignored this development. But they have awake enough this year or maybe a little bit earlier to the fact that they're facing a lot of competition on their routes from these guys. And they decided to. Serbs start fighting them back and their fingers. On the route where they compete with these guys have really diminished at least for the cheapest fares. That are available that you have to book Wayne advance for. Susan Gail here can you give us an example maybe have one of those trips that. That would be about the same. Well we get I didn't Internet search on you know. Certain date in January. We're a couple of months in advance and you know from Chicago O'Hare to LaGuardia. In New York. What 87 dollars round trip on spirit it was one of nicotine on united. 136. On Americana and to those six on delta. Well I live in Chicago and I go to New York a lot and I have never seen a 116. Duck around trip on united before. And that's just not that far from the 87 dollars on the spirit. When you figure that spiritual that a charge you for everything. You know your checked luggage here. Kerry pure water you see her. And all the sudden you know united Israel and matching them. So in a case like that which would you book where I mean is it worth going with the bigger carrier. Or can I mean because like you said by the time you pale the add on fees you're probably paying more that you pay on. A one of the bigger lines. Well it depends I mean if you are if there's some people to travel without any luggage and they don't mind that he can doesn't recline it has no legroom. And that case you know go for spirits. Because you know if you don't have luggage and you don't drink water you're gonna get a better deal. If you are a person who has united my idol or American models. You're gonna get a better experience. Our overall. On the bigger airline. And a leader in the paint more and you're gonna get tree water to free 100 your Yugo that's still expensive water. Now the fact of the matter is these these low cost guys don't fly too. Fargo and almost. They really only go to the big cities which is a lie. That he major airlines. Fares keep disasters have declined in the big cities like Chicago and Philly in Los Angeles. They serve that there's no. Bar again insiders note or are. The man car. You know. El Paso. Susan. Susan we've seen a wave of consolidation. In the airline industry over the last ten years. And I'm wondering if there is has been any thought or any rumors as to any of the larger legacy carriers potentially looking to acquire a low cost care. I really don't think the Justice Department would be very excited by that concept. The you know the largest for airlines now control 82% of the domestic market. And the idea of one of them buying. In spirit. Would really. You know kind of diminish. Indeed lesson to level of competition in the US the Justice Department is again. You know looking at the big four and seeing if they're kind of signaling to each other about their capacity plans. So I ate I just don't see that happening plus if you have a big iconic airline by a low cost airline. The cost of the low cost airlines are going to go up. Susan competing for the business travelers I mean are those still the business travelers still going to the major airlines or. Are based are they starting to travel more on the discount ones. I'm hearing anecdotally that some of the business travelers are. Less loyal to the big airlines and that you should be. In part because the airlines have devalued their frequent flier programs that. And made it harder for people to you know win points and get treat trip to calm. On the other hand the big airlines can take you to Frankfurt and Shanghai. Where he can't get there on spirit or southwest so. You know it's. The big airlines still to spend a lot of effort catering toward those who road warriors. America in the largest airlines says that 1% of its passengers and crew I calculate 12% of their revenues which is astounding. Whereas 87% of their passengers who only fly once see your enterprise sensitive. Only account for 50% of the revenues so yes. It's it's in the airline's interest to continue to lose the road warriors that they are very small minority. Very good Wilson I appreciate you joining us today and certainly a happy new year to you and your family. Thanks for heavenly happening you know. Thank you Susan Carey from the Wall Street Journal will have that article posted up on our FaceBook page. A little bit later. Here are small business owner and your looking for a way to expand your business next year and looking for some cash to do so Peter bank has a Small Business Administration term loan. That may be right for you. They're offering these SBA loans up to a 150000. Dollars with no closing costs they offer three point 99% interest rate that is fixed for four years with a four year amortization schedule. And it requires a minimum credit score of 700. In order to apply some are business that is looking to grow in 2016. All you have to do in order to get in contact with them. These give their office a call. At 877. 69179. Years are the folks there very helpful they help the number of local businesses to expand their footprints over 2015 they wanna do the same for you in 2016 as well. Once again called leader bank at 8776917900. Gail we get a winner on our trivia question it did we. Did we do have a winning yes we do Boston. Back me. And he got the cracked answered I don't even know the answers you're gonna have to. Yeah the correct answer the question was what is the name of the dragon and main villain in the Hobbits. And the answer was smog in we did counter we count opponents he wears spelling rather tubes that anyone has spelled it FM OG. Did not get credit in had a BS in a UG we're very we're very tough here on the finance there was something you know we ought you have to be on top for your game in order to get something. You know as as a prize yourself Bob product coffee mugs congratulations Bob knew how to spell. Its outstanding congratulations Bob that keep you warm. In the winter we're gonna take a quick break here but when we come back we're joined by David Pelletier from the street he's going to be talking about Boeing and Ford with us to get your pencils out that you can take notes you're listening to the financial exchange from the insurer match dot com studios. That means fast and generating in job. Listen and learn about the economic realities that face you in your family it's a financial exchange on the financial exchange radio network. Wouldn't it be great if you had a crystal ball and you knew what 2016. Holds for the economy and the stock market unfortunately you can't rely on predictions what you can rely on education we've put together our 2016. Economic and stock market preview guide in it we discussed many topics including how the strengthening dollar an exchange rates can adversely affect US stocks international events impacting our stock markets. And the extended decline in oil prices and much more call now for your free copy 803934001. That's 803934001. Educate yourself for the new year 2016 it's upon us 803934001. Securities offered for securities America incorporated member can rest a BC and advisory services over their securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are on affiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also get in the near cost basis and their property this can create huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event that one of your adult children has creditor problems or goes through divorce. They feel that it is that you can't take it with you met inspires wealthy people to start giving us a ways gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies comb out to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family the right way called today 8668485699. That's 866848569986684856. And. I'm nine. Barry Armstrong here and we're joined by. And we're and talk about what they're doing and what they're making available to consumers I do reject. Great Barry thanks for having me absolutely SBA loans and small business lending Armenia optic. About discussion right now great looking use the money for you music relief or any business need that will help your business expand new trucks improve Newt rock's view about kitchen equipment. Remodeling re modeling you know expanding. Into new law computers computers servers whenever maybe he and he uses a line of credit insurer just for an injury but it could do lack credit yeah absolutely and we spent a lot of professional service Berg's. It would have a line of credit he may be ordering we'd sure. Cash flow payroll etc. so. Well we're properties a special rate now at three point 99%. Fixed rate of warriors there's no closing costs with bones a 150000. Dollars you know minimum credit score of 700 and an application process it very quake we will give you a response within ten days complete. End and we've had a lot of success with it and most importantly we've got a lot of small businesses in way more people and grow their business good deal. Folks if you're interested leader bank. Has ESP a term loan and it has an interest rate on three point 99% its fixed or four years in its four year amortization the minimum credit score is 700 in order to call I call leader bank. 8776917900. That's 877. 6917900. You go to their website which is meter Bangkok but it's easier just call and talk to a human being 8776917900. And market updates come your way right here it is a financial exchange in the financial exchange radio network. Time for stock talk here on the financial exchange and we are joined by David Peltier from the street. David thank you for coming on with us. It David a couple big American companies here big American manufacturers. And I wanna start with dobbs Boeing and Boeing most people probably familiar with their business but. What specifically are you looking out with the company today. Whatever illiquid Boeing is that the company and a multi year cycle. No surprise that a lot of both major airline the upgrading. The I expect that the continue our bit for the read the decade and about allowed the company cute. Post solid earnings growth and as a result the company does it raise the debt there. And it really has 3% dividend yield on opera. David a lot of the growth from bone if I'm correct. Has come from a lot of the sovereign airlines in the Middle East expanding their platforms significantly. And is that something that is expected to continue over the next decade or so is their long enough runway out their pardon the pun I guess for op for the company over that next ten years. I I think you're gonna be that bird girl domestically. Being in Atlanta quite elbow Lott and if you've been on some of these new plane. You don't wanna go back. It's something that I think the customers are going start demanding more and with a whole load it. I think just the all domestic growth as well. But what did mention there could be out there and receive especially. A lot of these state there are different and on oil. We're what are we seeing in terms of the the battle between Boeing and Airbus is that pretty much a dead heat in terms of overall sales right now hours it tilted in any one direction. There a couple of years ago I think you can say that there'll whether or borrowing favor. Only because they are able to reduce those next generation playing out there they were eating at that. But it really isn't a bit. It is at the end of the day or check out the people. That experience. I think they're really gonna sit. One thing that I always worry about with companies such as bone is much like the major auto makers dirt during good times it's it's almost more difficult to get a contract done with there workers and make sure that you're not seeing significant wage pressures on on their margins there. What is the status of their relations with their workers at this point in terms of universe nonunion and how exactly that set up is playing out. They're always an issue could be larger company that is worst outburst company. But I don't think that something it really all our investors are concerned. I don't think it. Our problem when you know really they're earning. Which as a result what hit the divot and that it also speaks before it went a bit of very strong balance sheet. And again I don't think that the labor with respect. OK very good and let's turn now and look at Ford obviously. Ford again most people pretty familiar with them one thing I see just right off the bat they're looking at the stock. Not yet about a four and a quarter percent dividend. Yet I think that you're gonna be that you'll increase it in early expecting that. The company does have an upper raise that dividend further. And really that under the back record or at least the record for the last decade or so industry demand especially in this country. Again that's driven by lower gas or by our board and up at Marc are much fire on the people. Aboard air. Now what do the the next big project in the pipeline for Ford I know they've had a number of successes. Over the last years of the biggest one being the redesigned F 150. With the aluminum body what are the next major initiatives for them over the next couple years. Well I think what that's been rumored one in my announcement on. They get this week. Could be a driver car with Google. I think I. That's more than a couple of years out but I think that a thing or some excitement. It is so but in general I think you're going going to continue to seek our wider or you look there's. And there really aren't many bells and whistles that port out that the pick on me and that bubble. Are. I think you'll continue to see more you look there's the man. Something like this I really fit the really need ID a clear. What are some of the other major advantages that Ford has over the other domestic auto makers now I know the GM. Has done a ton of work in the last three or four years cleaning up their cost structure and and really getting I in much leaner company in place there. Are there any major advantages that fort possesses. Over them or off Fiat Chrysler. That day I think there reliability numbers have been better they. New entertainment system in the and are what are people that it be an import. At that lower price point. You know that they what is that. It means and Boeing and Airbus a bet is that it'll. Ford and GM I think ordered the better. Start and Chrysler really is running at this third even if they have been doing better. Very good will David I appreciate you joining us and junior family a happy new years. David Peltier from the street and if you do want to look those stocks up on your own Boeing has the ticker BA. Board with the ticker at. Couple simple ones for you today. Gail one talking about this complex that is being proposed over back base station in Boston. This sounds really interesting you know it would be another one of the big towers up in the city and it's been awhile since we've had one. You know may be rivaling like approve war. Where John Hancock but they aren't specifically talking about how Paula would be. All we know is that Boston properties this week filed a notice with the city wants to build a one point four million square foot complex is at the office space housing. Retail. This is back space station it out down by Clarendon and Dartmouth street so. It would really make a big change to that neighborhood I think. Yeah and and when we talk about the the size there one point four million square feet by comparison. The pru just to give you an idea of the scale here. The crew is one point two million square feet so in terms of the overall size not saying at the height would be compare will necessarily. But in terms of the overall size and amount of space we're talking about something that's about 15% bigger. Then the Peru now may just be wider may take up more space horizontally as opposed to vertically but clearly this is a big project for talking about you it's not seen all of it. In any way shape and this. Be really good news I think for T writers and I am for the team because they're talking about making 32 million dollars in upgrades to the facility. And anybody who writes that he threw their nose at that aren't very much. Especially that's that's a key key hub between the tee and the commuter rail I believe. And I can tell you I've traveled there you know trying to make those connections a couple times it's it's a little bit of a messy can tell out of a facility that needs to be updated a little bit. Just to make it a little easier for people to get around so I'll be adjusted to see. Where that project goes. Over over the next two years so to see the weather gets approved. Now still needs state approvals to that city and state approval should how back can be packaging are ya know him but I. I think that area would would benefit from something like. Then they already have Bob pretty close by they've got the the Christian science talent it's gonna be going up I think that started. I think construction of that started maybe three or four months ago now so that's been moving there. Downtown if you go towards the financial district you've got the millennium tower the just went up in downtown crossing where the old Filene's building used to be. That's something different there now doesn't it oh my goodness so different think that it took. Twenty years ago what that neighborhood was like and what it is today. It's hard to imagine night and day there and then you also have the other big one that I've seen has being the one rate down by TD garden that is going up right next to I believe it's the west side I've seen of Florida it's I believe that is owned by a what the what's the name of the Jacobs groups in Delaware north I think it is yeah I have believers are gonna be offices I think it's officer of the Celtics I think there's some hotel space in there is a well. And there's going to be some retail on low floors just kind of title thing in and they're talking about putting another building up I believe in front of the garden where that parking lot is too. That has not yet been approved but that's something that whole area is going to be vastly different in five years if they're able to complete all of those projects herself. It's you know continuing to be. Now a lot of growth and development in Boston we haven't even touched on the seaport which is just a completely different city than it was five years ago. Wow and when he years ago you were it it was a year ago how there are very eager down at night and oh yes pretty. It was a pretty. Desolate area but it's between the hotels and the restaurants and it's it's really grown. Definitely appreciate everyone listening today. Chuck Todd and Gail Huff in studio here you listening to the financial exchange from the insurer match dot com studios. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also get in the -- cost basis and their property this can create huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event that one of your adult children has creditor problems or goes through divorce may feel that it is that you can't take it with you -- that inspires wealthy people to start giving us that's a ways gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family the right way call today 8668485699. That's 866848569986684856. 99 mortgage rates are still at an all time low and it makes sense to take advantage of these rates whether you're refinancing or buying in the moment leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rates ask their experience staff about mortgage financing options and get a very competitive low term fixed rate for your home whether refinancing or buying a new home work with leader bank -- 776917900. Or visit leader bank dot com leader bank -- over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts -- mortgage financing deal with the local bank today and call 8776917900. Or email us at loans at leader bank dot com visit leader bank for all your home buying or refinancing needs 8776917. -- 900 that's 8776917908776917900. Or visit leader bank dot com member of Jesse equal housing lender. This is an important message to those of you who may need flood insurance this hurricane season if you're a flood zone or think you need to protect your home from a flood you need to call insure a match there and independent insurance agency that represents a variety of insurance companies and is dedicated to your personal protection. According to the National Flood Insurance Program 20% to flood damage claims are filed by homeowners who live outside high risk flood zones insure a match is offering a free guide that can help you make more confident decisions to protect your home Coleman today at 87732450. To four that's 8773245024. And review their list of everything that is and isn't covered by a flood insurance policy that's 8773245024. The call is free and so is the guys at 8773245024. Or check them out all mine that insure a match dot com that's IN SU. Our cents from the cost of long term care. What are the risks associated in giving your assets to a child. As opposed to giving them to an irrevocable trust that now we all know that durable global trusts are the preferred mechanism for protecting assets from the cost of long term care. You and your right in the spirit of giving I think it makes sense to discuss this because people tend to think that it's so much easier. Just to give it right then spend time and money setting up a trust. Folks while giving it away will ultimately protected from the cost of long term care so the trust. But when I give it away what have you done to yourself and that's who I worry about too we were teacher Perry is a protecting that moms and dads of the world. From the children first priority and if you give it to the children you now as a parent have lost complete control over that that break. You may not be able to even live there at your home you can't sell it as easily as you want to whom you can't control it really and anyway and more importantly. When you put it in the hands of the children any one of them can have a financial problem or divorced and thought that was put somebody the other day. Who said you know my child can't service trustee because they're going through a bankruptcy. Now folks putting things in a trust that trust owns it. Not the children they can have a bankruptcy it doesn't affect the assets giving it away is not good for you or them. Do yourself a favor and get this free guide from Cushing and dole and it's all about the implication of gifting your assets away. Request this guy from Cushing and Dolan by calling 866. 8485699. That's 8668485699. I suggest you read this guide before you make a gift to your children. 8668485699. That's 2038668485699. Hi I'm Tim London and appear worried about your parent Carol Loveland living alone like I was. And you are reliable senior care information. And call a place for mom. The nation's largest senior living referral service you'll get free information on assisted living alzheimer's care nursing homes. Even important financial information. They had obviously researched every place not just given me news. They found me a place for which he could afford and it was magnificent. We're now very confident that she's safe and they just helped every step of who. To them. So if you're struggling to find reliable senior living information call plays for mom this is a free service and you can trust them to help you if you struggling to find reliable senior living information for your mom or dad didn't call or go online to get the free help you need during this turbulent time call now 804677530. 804677530. Pat Boone here with a word about bank safety you think your money in the bank is safe. Don't bank on it a generation ago bank account felt secure and they paid interest this encourage the virtue of thrift. Saving but today. Bank accounts paid virtually nothing. And shifted from low risk high risk for example did you know your money deposited in most US banks could be subject to limited withdrawal. And even confiscated by existing executive orders or be here this. And that's just the first of nineteen risks explained in a new 32 page white paper entitled don't bank on it. Still think you're bank deposits are safe. Yet this vital new white paper now. Call toll free 8051960. To 718051960. To 71 hi this is very Armstrong in if you own rental property you're gonna wanna hear about this exclusive program offered by -- -- it's called -- rent and it's designed specifically to help landlord to receive and deposit their rent checks electronically as opposed to having to wait for the mail call -- bank right now if you're interested in -- rent the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and we'll help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for -- -- upon the execution of their -- and why wouldn't wanna do that once it's set up you never have to make another change during the lease period that he rent is a free service if you have an account with -- bank and if not it will simply cost -- small monthly -- -- -- bank right now at 8776917900. That's 8776917900. Or go to -- -- dot com for more information member FDIC. Point your favorite news photos and sports updates on your phone when AT mobile from the Associated Press AP mobile where the news gets its news. This is the financial exchange we've Barry Armstrong. This routine you're street stay on top of breaking business news and learn how to manage your money to help you. It's a more secure future and now broadcasting live from the insurer mansion dot com studios it's the financial exchange with your host. Barry Armstrong. Your morning and welcome into the financial exchange very Armstrong is on vacation tux on and Gail Huff. Have more acting air a very happy new year to you into all of our listeners is hell's gate and and sixteen it's going to be a good year right I think so I don't think so and a and in on this here that the last. Day of 2015. One of the things that we wanna kick this occupies our off with. Is talking about our top stories from the business world in 2015 and I do wanna open is up to our listeners as well. Texas it's 68680. And let us know what you think some of the top business stories war for 2015 we have our list. But I'm curious if maybe there's something that we missed maybe if there's something that you have a different view one. What is now Texas at 68680. And let us know what you thought the biggest business stories of 2015 hour gale. Well let's let's start off with one of our from the this year. What are mine is price of oil. He crude oil fell below 35 dollars a barrel in December that's a seven year low. And obviously across the nation now we're paying low low prices about two dollars a gallon up. Who would have thought. Debts I think if you go back and we've looked at the the futures from about a year and a half ago. Four and give her credit for beginning of 2016 delivery no one had a oil being the slow. Everyone said it was going to be somewhere in the range of eighty to a 110 most people right now 9500. Range but no wind had any projections coming in this slow so. I I I think that is being a massive story. Both domestically as well as abroad we've. We've talked in recent days about a lot of countries in the Middle East that are now having to start to Tampa starting to tap those sovereign wealth funds they've been building up. For the last ten to fifteen years. And it's it's been fascinating to watch that development as well and I think that. Pretty much anyone regardless of whether you're involved in the energy industry or not. You've been affected in some way what you're talking about lower costs for. Heating your home lower costs for driving. The same cost on planes and a lot of cases because it seems that we're not seeing a ton of discounts there but. It's it's been something that I think is at a global impact. It's definitely had an impact on the economy and we've all felt it will continue to be a big story in 2006 game it well it absolutely will hear. Let's talk about. The best and worst performing assets of 2015 we are here on day 365. Of the year we could finally give a full year recap without you know in the short changing the the year bid itself and to start off with currencies are okay. And in currencies this year. Number of currencies particularly emerging market currencies. Got absolutely. Destroyed. Okay worst performing currency. Was the as as there by Johnny might not which was down about 50% this year now you don't own the hazard by John and not I have to say anyone affected but if you did. Wasn't very pretty year for other currencies that struggled the Catholics stand. Ten days I think that's how you pronounce it the Zambian watch out the bill Russa in Ruble Argentine peso the Ukrainian. A hernia and the Mozambique new medical. Look at many of you don't have it and Oca snowball struggled. What actually saw a 20% game this year if you were a holder of the Somali shilling you do it unbelievably well up about 20% this year. The Somali showing did well. I can't leave this even number two here the Seychelles ruby. Is that right Seychelles rupiah was up about 10% this year. It and it's unbelievable there. Well the commodities market not a good year at all in fact an energy heating oil was the worst performer. In metals. Platinum palladium bull down about 30%. Not good gold. Just about 10% down south not as bad as some of the other commodities but still not not very good. It agriculture coffee slump when he 5%. And cotton sugar or put them. We're in positive territory so if you're in a cotton or sugar you did well but otherwise tough. Yeah on the on equity side of things OK number of different world indices. Struggled the the worst performing index this year the Ukrainian equities index down about 55%. Not really surprising there. Colombia Brazil. Namibia. Grease all down over 40% as well as extend down over 40% to. Dale what do you think the best performing stock market index was this year oh boy that's a tough one attacker. You wanna chuck and I guess one what do you think the best performing stock market index was this year. I'm on the well that you could do well the correct answer. Was the Jamaican and acts of course he Jamaican stock market says the Jamaican stock market rallied over 80% this year action now. I have no idea. I have I what I. I as accrediting I try to not talk about the I I don't know what but this like I look at this and I say. I have no I've I think we should go to Jamaica. A guy who an investigation. A month ordered out figured out yet someone on our tickets yet and will Lott will do little traveled down there to see what's going on yet about 80% no other index was up more than 35%. So I found that pretty amazing. To see there we do have a pretty jam packed hour here coming up we're gonna be joined by Todd let's keep from Cushing dole he's gonna be giving away his guy that. Really as well as they can get it's the last day of the month the last day of the year he's gonna be giving that away. After this break we're also gonna be joined later on by nationals from credit cards dot com talking about a lot of the frequent New Year's resolutions that people make. Heading into a new year with regards to their finances are getting their credit in their debt in order so we've got a pretty jam show world's gonna be talking. About why first time homebuyers are staying on the sidelines Hoover hitting a billion rides. And a phenomenal story out of China that I can only characterize as my dog ate my homework if that's gonna be coming up a little later as well. So we do have to go to a quick break here on the other end. Todd let's keep pushing dole is going to be joining us talking about his recent guide your listening to the financial exchange from the insurer match dot com studios. Hear about the latest financial trends right here these financial exchange on the financial exchange radio network. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also given them your cost basis -- that property this can create huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event that one of your adult children has creditor problems or goes through divorce then the old adage is that you can't take it with you and that inspires wealthy people to start giving yes that's always gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family the right way call today 8668485699. That's 86684856998668485699. Hi folks this is very Armstrong from the financial exchange it's never too early to start thinking about filing your income taxes do you know your personal exemption amount or what the standard deduction amount is these figures change each year and I've made available a guide that deet tails all of the 2016 as well as the 2015 tee income tax numbers that you need to know in order to file your taxes includes information on the income tax rates the long term capital gains rate and the standard mileage rates that have changed yet once again it also includes critical retirement and estate planning numbers this guide is free to those of you who call now 803934001. That number again is 803934001. Securities offers you securities America incorporated member in wrestling PC and advisory services or the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Mortgage rates are still at an all time low makes sense to take advantage of these rates when you're refinancing or buying in the world leader bank is a local but it is one of the largest mortgage lenders in New England with very competitive rate their experience about mortgage financing options and get a very competitive little term fixed rate your home whether refinancing or buying a new home work with leader bank colleagues 776917900. Or visit leader bank does come leader bank went over one billion dollars last year to homeowners and the commonwealth of message that they're the true experts and mortgage financing deal with a local bank today and call 8776917900. Or email Ed loans as a leader bank dot com visit leader bank were all your home buying Marie financing needs 8776917. B 908776917908776917900. Or visit leader bank dot com member the equal housing lender. If you own rental property you're going to want to hear about this exclusive program offered by leader bank it's called zero cents and is designed specifically to help landlords receiving and deposit their rent checks electronically as opposed to having to wait for the male co leader bank right now if you're interested in C ranked the number is 8776917900. That's 8776917900. This program will automatically deposited your rent checks into your account and we'll help you avoid the hassle of waiting to get a check many landlords are suggesting that -- and sign up for zero into the on the execution of their release and why wouldn't you wanna do that once it's set up you never have to make another change during the lease period zero and does a free service if you have an account with leader bank and if not they'll simply cost you a small monthly -- co leader bank right now and 8776917900. That's 8776917900. Or go to zero grants dot com for more information number -- Yesterday. Get your thoughts and questions seem instantly takes the financial exchange at 6868. This is the financial exchange on the financial exchange radio network. Welcome back into the financial exchange chuck sonic and Gail Huff here today. Trivia question we do trivia every day here on the financial exchange just Texas at 68680. If you have the right answer and if you get it first. You win a prize. We're doing Lord of the Rings trivia today since it would have been JR tall and 124 birthday on Sunday. And our next question here is what character in Lord of the Rings utters the infamous words. Crash tests ultimately. Not see things I didn't see the hot but once I saw The Lord of the Rings ones we thought were phenomenal I just don't really have a huge interest and hobby but again what character in The Lord of the Rings series utters the infamous words my precious and joining us now on the phone is Todd lets you hear protecting your precious. And Todd thanks for joining us. How does it up quite segued there I just spoke about that you have a press that's precious yeah that's. That's that's what I hear and I know that a lot of folks out in particular especially this time a year. Todd that they've got questions about gifting and in particular it's an area that people can get themselves into a little bit of trouble in the first thing that I wanna ask about is a common question we get is. You know what are the tax implications of gifting away an asset that's highly appreciated. Yeah net net is the biggest concern I have most people either given away their investment portfolio perhaps it's grown over the years or more importantly. Their rental homes their vacation home thinking I'm gonna protect him when he did that my children. Well my whole well. While the government. Does allow Los to make gifts today up to 5450000. Dollar without paying any dip attack. That doesn't mean it's something we should be doing right on the government tells us something it's usually not good for us the reason being is. These properties. That you might have. But who long ago sold for example if I had a piece of property was that I paid. 100000 dollar sport it's worth 500000 dollars today I wanna give back to my children. I'd be giving them the cost base. Well there would be no gift act that would they'll take it out of my state. I'd be sticking my children. With a 100000 dollar basis resulting in the eighth when they go to sell at first base 500000 dollars. 400000 dollar capital gain and you know today capital gains taxes or post a 30% between federal state and the obamacare tax. So you know we're looking at a 120000. Dollars. Being in tax. Debt just doesn't need to happen if you keep. Likely we're not gonna have any state tax at the federal level because the exemption so I. And probably what basic planning you're not going to be Dick you're gonna be under two million. Or Massachusetts or org your New England state. As state the state tax. And the kids would get all of these assets with a basic equal fair market value on the date of depth meaning it got that they paid 500000 dollars or. Thereby eliminating. The debt capital gains tax when they go to sell it. And likely not resulting in an estate tax by dying hoarding it. We think about that before you give it away. Now if you talk there a lot about the tax implications here but. Let's look at this from a long term care perspective in particular. What risks do you assume when you give your assets to a child rather than putting them in durable Coble trust. Yeah and I think that that's probably a more real life question than anything else right you sit there and you say hey. I've just gave my house to my children I don't care about those tax issues Todd because you know it's at least protect it from the nursing home that I did it more than five years ago. That's true. I you don't own it anymore you don't have the right to live there you can't sell it. You can't collect the proceeds from the sale that downside maybe and buy another place and most importantly the children now. Could get divorced sister have car accidents well you're living. You could push a house. So you know giving up control over mastectomy is probably a bigger concern than even the tax issues we mentioned earlier. Eight I mean here of course we don't we like to protect that that's what we like to keep our clients in control of them. At the same time which is really most important. Yeah and anything in particular when we talk about the benefits afforded. By either. A revoke able to restore an irrevocable trust what are what are the major things that people are able to accomplish in doing so. Yeah you know I guess so the DS I understand you correctly more bulk cot instead of giving these things away. Whether it be an outright gift or not yet be alternatives yes well I think the alternative as is generally if you're looking for nursing home protection as one of your. Components in your estate plan. That this irrevocable trust that we speak up a lot it is the way to go in particular asked that chair home. Your vacation home your rental out there what is your investment portfolio. And you can take them and re title than to distrust. By doing that number one absolutely no guests were made so there is no completed just taking place here. Number two. Kids don't own it. So even if they aren't the trustee is on the trust. They don't own it which means. They can have divorces they can have a car accident and financial problems and their creditors can't get it which is good for them. And good free you know the mom and dad of the world and five years after you put it in there will be protected from the nursing home and it avoids probate. If you can sell at any time you wanna sell at the moms and dads of the world that have created debt. You know they don't what was their capital gains tax exclusion when they doubt that they can use the proceeds to buy another house I mean it's so many things that. That people think that when they have an irrevocable trust they've lost control Britain. And I don't know how many other ways I can say it other than you know if you really wanna lose control. Give it away think about how much control you have over that. Keep it plans for a unity irrevocable trust. Kept far more control. How do you have any stories from people that you've met with recently that. For whatever reason didn't do the proper type of planning and thought that gifting was going to be. Really think that the best way for them to go about their strategy and ended up in a bad situation because of it. Yeah yeah effect we had a a situation come in where they actually just but the them some father I think was the only one living yet come in and he's that you know I'm I'm completely convinced that all I really need to do is just give my my houses to my children now. We actually cut him off the past like don't have the a bad result but to put. Completely convinced that's only needed to deal cabinet piece of property in Florida in a piece of property down McKay. I want my children to have and I don't want to get involved and all these things. Explain to them the capital gains tax problems that he was gonna win Kirk. Nevermind all the credit problem because sometimes people are like are item not worried I have great kids don't worry about that. You know but I can show on the tax ramifications. The capital gains that would be built and what that. Now enough to stay for him to say you know what. I can't do that. Apps you know absolutely and and folks as you just heard look there are a lot of different situations. That you can get ourselves into where you end up. Ian and really troubled that I think is easily preventable. Just by talking to someone and making sure that you're doing the proper planning and frankly it's it's not it's it's something that needs to be done and it's something that really just by taking a little bit year time to read and talk with someone. You can actually save yourself a lot of money. And how excellence of Todd and all of the good folks over at Cushing and Dolan may have made available a free guide to gifting assets it cost nothing to get. In all you have to do is call 866848. 5699. This also the last time that Todd is giving away this article since it is not only the end of the month but the end of the year so pretty much once this is done today. Tubs are giving this away again so you need to call today. In order to get this article once again this is the last time they Cushing and Dolan is giving this article away. December 31 they're not doing it again and it cost you nothing to get it all you have to do is call 8668. Worry. 5699. For the free guide to gifting assets Todd I certainly I certainly appreciate you coming on today and a very happy and safe new year to you and I your family. While you as well and Ankiel and and and in that one last note it's always funny that you would actually need a guide to get into what you actually tell you don't want it to stifle. You would think it's something you can't do wrong but it turns out you actually can't thanks again Todd. Once again this is beyond the last time this is available to get the guy all you do is call 866848. 5699. Gail I wanna turn to. First time homebuyers. And this is a theme we've been discussing this week with the struggles of the housing market to attract new buyers here. And there's definitely some common themes when we talk about. You know we're at what are things we talked about again and again and again is the fact that millennial don't necessarily want to buy. New homes or or even starter homes. Fannie Mae has a new survey out they found that only 37%. Of current renters for instance say they plan to buy at all yeah. Which I really really interesting. I thought that was really low I was surprised at that. 87% of current homeowners say they do plan to buy again so once they get into that the home buying market up their their interest that. But it seems like a lot of the problem may be education. People don't meet younger generation doesn't have a lot of information about how to go about buying a home. Or they have a lot of miss information for a for instance homes that can be purchased for as little as 3% down. Com I was surprised that the I mean 3% I it's hard to imagine being able to buy a home for that but you can do I think. From my perspective when the other things you you see a lot of millennial say now why would I wanna own a home it's just the hassle of just more apt to do and part of that I think almost comes from. Yankees you have these millennial they either have just graduated college or maybe they're still in college you today and adapt and they have a lot of student debt but beyond that. They saw other parents in their friends' families struggling with homeownership backing away no nine they saw families that lost everything because it because of housing and as a wolf I can only ranked. I wouldn't have to go through that because the only that their formative experiences have been negative what are the housing. A lot of people bought houses to in my generation that they really couldn't afford it's they handed out working 23 jobs sure just to pay for a house and that's not a quality of life. I don't if you're spending all of your time workings that that you can pay the mortgage then. You're probably not having a lot of time left over or disposable income to do things you wanna do. No exactly so number of different reasons out there for the trends but. Clearly you know you're going to have to get more of that next generation. In debt housing if you do want the the trends that we've seen over the last 1516 years to be able to keep up and there's there's definitely something to be said that not everyone should own a house just like not everyone needs to go to college be based on what they want to do exact putt. People turning away from the housing market without fully understanding and I think is what concerns me. Exactly well it's concerns everyone in the industry gas yes it certainly does. So we are going to take a quick break here when we do come back we are going to be talking about Hoover hitting a major milestone. Some growth from Amazon as well as that great story out of China. Once again that the best way can summarize it is my dog ate my homework. And that's really all I wanna say on it to this point. But we will be back with all of that information. After this break Ross going to be joined later on in the show by natural from credit cards dot com talking about your credit card. Debt and year resolutions heading into next year you're listening to the financial exchange from the insurer match dot com student news. You've got a barrier and strong financial exchange on the financial exchange radio network. Mortgage rates are still at an all time low and make sense to take advantage of these rates within your refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rate their experience about mortgage financing options and get a very competitive little term fixed rate your home whether refinancing or buying a new home work with -- leader bank colleagues 776917900. Or visit leader bank dot com leader bank went over one billion dollars last year to homeowners in the commonwealth of message you know they're the true experts and mortgage finance deal with the local bank today and call 8776917900. Or email bad loans at leader bank dot com visit leader banks are all your home buying -- refinancing needs 8776917. B 900 that's 8776917908776917900. Or visible leader bank dot com member C equal housing lender. Very Armstrong here and we're joined by G-8 to ease the vice president and leader bank and we're talking about Small Business Administration holds this is a very important topic because the lending season is here you wanna be ready you want to expand your business leader bank has capital to lend out and we're gonna talk about what they're doing and what they're making available to consumers hate OJ. Great very absolutely SBA loans and small business lending is certainly a topic of our discussion right now right what can use the money for you can use really for any business need dad will help your business expand new trucks improve new trucks view kitchen equipment. Remodeling re modeling you know expanding into new office computers computers servers whatever it may be king and he uses a seat net for line of credit sure his fourth and those rainy day I didn't make a dual credit yeah absolutely so you know we find a lot of professional services firms. They won't have a line of credit because maybe slow slower winter sure. Managed cash flow payroll etc. so. Well we're offering these a special right now it's at three point 99%. Fixed rate for four years yup there's no closing costs with loans of 250000. Dollars could you minimum credit score of 700 and an application process is very quake we will give you a response within ten days from complete app outstanding and we've had a lot of success with it and most importantly we've helped a lot of small businesses and way more people and grow their business. Good deal folks if you're interested leader bank has CSP a term loan and it has an interest rate on its three point 99%. Its fixed for four years and it's a four year amber to station the minimum credit score is 700 in order to qualify called leader bank at 8776917. B 900 that's 8776917900. You can go to their website which is leader banked a cop. But it's easier just to call and talk to a human being. 8776917900. Interest rates remain stubbornly low and I'm not sure when they're going up on top of that not everybody wants to invest in the stock market hi this is very Armstrong and is talking to my friend how we about the stock market and he refuses to consider buying stocks how is conservative and he only wants investments are safe and guaranteed that got me thinking and I found three year guaranteed annuity that yields one point 95%. Per year for three years there are many types of annuities and some people think you have to type your money for ten years not true in this instance three years at one point 95% and then you're out with no surrender charges if you'd like to earn one point 95%. Per year guaranteed for three years all our office at 803934001. That number is 80393400. What this is the best rate that I've been able to find so called now free 803934001. Principal and interest guaranteed as long as you all your contract thrilling to guarantee period guarantees are backed by the claims paying ability of the insurance company. Hi this is very strong and if you own rental property you're gonna wanna hear about this inclusive program offered by -- bank it's called -- rent and it's designed specifically to help landlords receipt and deposit their rent checks electronically as opposed to having to wait for the mail call leader bank right now your interstate in -- rent the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and will help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for Z -- upon the execution of their league and why wouldn't you wanna do that once it's set up you never have to make another change during the lease period -- renters are pre service if you -- account with -- bank and if not -- simply cost too small monthly -- leader bank right now at 87769178900. That's 8776917900. Or go to -- red dot com for more information member FDIC. Breaking business news in the financial exchange on the financial exchange radio network. Oksana and Gail Huff in studio today bear arms strike out on vacation and we're talking about our top business stories. Of 2015 and if you do have any of your own. Texas at 68680. And let us know what some of your thoughts are on what the top business stories of this year are some of the ones that our listeners of Texas in the 603. Amazon using drones to deliver their products definitely something that is in the works we believe. From 413 vertical landings of rockets and there's this basic reusable rockets is definitely something. That could be changing things but Texas again at 68680 and let us know what your thoughts are on the top business stories of 2015 Gail. Our next one you know to restaurants make the top list in my opinion chipotle. That's for the E. Coli or infection 52 people affected by that. And then after that the Norwalk virus that was right here in the Basra area oh yeah 140. People getting sick from that that huge problem for triple like. Not a good one and subway remember that took Jeffersonian Jared Fogle kids arrested have been sentenced to fifteen years in prison for. Child pornography so on to restaurants. And making big business news this year and not a positive way. No it's it's it's been a very difficult three or four months in particular for two polling now but one company that is celebrating a major milestone here whoever. One billion rides you know what I love about this the billionth ride. Was taken by Marvin in London and he gets a year's worth of free Cooper right now. That is outstanding usenet yet we agree I would take it everywhere it. Except that another drive and anywhere that he had not you can use all I used all the time I've probably. I would say an average. In terms of round trips I've probably take somewhere. Somewhere around five or six month I would really yeah I've never taken except with my daughters they take it regularly yup but I Pakistani and think about it. I use it instead of pretty much the only time I use cabs at this point is coming from the airport just because yellow cabs or any car with a delivery license plates still has exclusive right to pick up out Logan. But other than that I'm pretty much always taking over if I need to take something similar that I generally try to take petite pretty frequently just live. No I'm maybe a quarter mile from mine aren't line stations so you know pretty close and I generally try to use that just is a lot cheaper side. That's that's kind of my my go to their but get over with a billion rides and definitely something that I think if you go back five years no one saw that Tony you know it's no one saw that kind of disruption coming. At all. One company that continues to surge ahead. Talking here about Amazon in the online retail wars. Amazon with all the growth and online retail is here and they really picked up the lion's share. How they really did I mean addicts significant amount bolt. In store and online Amazon took a staggering 22 billion war almost a quarter. But still sales so that was huge for Amazon and now we really saw during the holiday season people shopping. The brilliant thing they did this year remember back in the summertime when they had that depth prime day. Then all these other retailers jumped on top and we were brilliant way to just get people out shopping for no reason to a. Yeah and an Amazon during the holiday season chipping 200 million. Items through its prime subscription services. It's market cap is now 325. Billion dollars making it the biggest retailer by market cap. Even though they don't sell more goods than Wal-Mart they do have a higher valuation. Just as their growth is still. And it's amazing how rapid growth is even with the size of that company here. That the big knock against Amazon and look I I can't deny it. They have major trouble. Converting. Their revenue into earnings for investors that it's on the cover profit down. And part of that is due to Jeff Bezos always wanting to invest back in the company they spend a ton of money on product development non building out. There infrastructure now. Did do some work on potentially. Taking over delivery and distribution actually moving into they've signed some leases for our I believe actually. They're in the process of negotiating some leases for some planes they've bought a bunch of trucks I mean. What's your point the company earn just 79 million dollars on 24 and a half billion in total revenue in the quarter I mean. That's not a very good return. No it's it's it's if it did one not gonna has always been that they do not make a big profit if they make a profit at all and you certainly can't deny that here. Let's do another trivia question here lots and we're doing. Public trivia today Lord of the Rings trivial largely because JRR whole pins 124 birthday would have been on Sunday. And what are we wanna do you have got this one in what country were all of The Lord of the Rings movies. Filled Texas at 68680. You know the right answer once again as always you have to be first with the answer if you come in second place you don't. Get anything. Now we give the winner of last question could be. We did check from Pittsburgh I don't think we did tech expert did have the right answer that what you taken home. He's taking them out free teacher and the winner the last question that we asked was what character and Lord of the Rings. But as the infamous words my precious and Jack had the correct answer with doll who was originally good for opted by the power of the ring. Are very very metaphorical. Or metaphorical. This is a great story out of China. And I've. I came in and isn't that superstore that I saw this morning and it said this is probably one of my favorite stories of 2015. At the long story short is there is a company called China animal health care. And they were under investigation and they had some documents that were. They need to provide Chu Lai an accounting audit that was being done in China. And they were being transported by truck. And the company simply says we lost the documents well all of them and we have no back of Swiss re camping out. They're claiming that apparently the truck was stole it. On its way to Beijing and the truck was stolen and they haven't found the track. They certainly haven't found the documents but how you can explain not having a back up these documents I don't know. Yet if this company that Eli Lilly has a 20% stake and they're saying look we just don't have any accounting documents. I mean this is this is what we talk about the dangers of investing in China this is it is that you end up with a company that. Doesn't necessarily have books at all even if they're keeping if if the keeping anything. They may not be clean but they might not even have books and also when we talk about the dangers of emerging markets investing. This is kind of case one day and and again I. I liken this to an elevated and an animal health care company because it really is my dog ate my home. It added alligator well. Did you media packet. We don't have back up why would we have those. Or why don't we have and he. Roll out the originals that should be enough. Don't wanna talk to our listeners a little bit about their insurance needs and specifically. Where a day away from point sixteen. And 2015. From an insurance perspective a lot of folks in northeast probably pretty difficult when the dealt with a stand with you dealt with problems with him melting ice with flooding whatever may have been a lot of folks had to put claims in this year and I think that really surprised a lot of people and with el Nino ramping up and look it's it's getting cold now in the northeast is. Is start to feel like if we're gonna get Hart hit hard again. You need to make sure that you're prepared for another long winter and to do that you need to call insurer match that they can make sure that you are ready. There are offering a free winter preparation guide that'll help you take the necessary steps to lower your risk of damage this winter the easiest way to get it. You simply go to winter insurance guide. Dot com again it's winter insurance guide dot com there's tips there checklists that help you manage your wrist and lower your chances of having to file claim. The free guide includes important reminders of protections to consider for your home and car including changes that you may need to make. Before. Before the winter picks up here so. Winter weather is going to be here before you know frankly but we we saw that storm couple days ago it's pretty much already here visit winter insurance guy dot com and download your free guide today again it's winter insurance guide. Dot com. We have here I think we regular brick Tucker don't weep yeah we have a quick break we have to take when we come back we're talking with Matt Schultz from credit cards dot com you're listening to the financial exchange from the insurer match dot com studio. I'm learning how. From industry leaders it's the financial exchange on the financial exchange radio network. Wouldn't it be great if you had a crystal ball and you knew what 2016. Holds for the economy and the stock market unfortunately you can't rely on predictions that you can rely on education we've put together. Our 2016. Economic and stock market preview guide image we discussed many topics including how the strengthening dollar an exchange rates can adversely affect US stocks international events impacting our stock markets. And the extended decline in oil prices and much more call now for your free copy 803934001. That's 803934001. Educate yourself for the new year 2016 it's upon us 803934001. Securities offered for securities America incorporated member can rest IBC an advisory services or the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities America companies are on affiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. This is very Armstrong and I like to talk to you today about SBA loan if you're small business looking to expand or improve your infrastructure you need to take advantage of this great deal from leader bank limited time your business can get an SBA loan a three point 99% annual percentage rate with no closing costs on loans up to a 150000. Dollars and that rate is locked in for four years you need to have a credit rating of 700 and they'll give you an answer within ten days of receiving your completed application lending season is here and leader bank has -- capital to lend out so if you've got a small business this is the number you need to call 87769179008776917900. Take advantage of this great opera from leader bank four year fixed rate loan at three point 99%. Annual percentage rate with no closing cost our lawns 250000. Dollars and you'll hear from them within ten days of receiving your application 776917900. Call right now 8776917900. Member FDIC. Jurors in the right insurance plan is critical to your overall health and wellbeing and incomplete -- and can affect your financial stability if you have questions about the current state of your insurance policies you need to call insure a match insure a match is an experienced independent insurance agency that represents a variety of insurance company and is dedicated to your personal financial protection the best parts they can handle all of your means under one roof making it easy for you to create the right plane that meets all of your needs call insure a match today at 87732450. To four that's 87732450241. Of their experts who periodically review your property assets and lifestyle to make sure you have an appropriate protection plan that adapts to you call them today and 8773245024. And received -- -- no obligation quotes from multiple insurance companies that once they get a plan in place to protect your wealth. That's 8773245024. Or check them out all moaning and ensure a mansion dot com. Mortgage rates are still at an all time low makes sense to take advantage of these rates within your refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rates that's their experience about mortgage financing options and get a very competitive low term fixed rate for your home where the refinancing or buying a new home work with leader bank calling 77 X 917900. Or visible leader bank dot com leader bank went over one billion dollars last year to homeowners in the Commonwealth of Massachusetts they're the true experts and mortgage finance deal with the local bank today and call 8776917900. Or email Ed loans at leader bank don't come and visit leader bidding for all your home buying and refinancing needs 8776917. B 908776917908776917. B 900 or -- leader bank on our member equal housing lender. Stock tips. Barry Armstrong. A financial exchange on the financial exchange radio network. Mean yeah. It's. Welcome back into the financial exchange trucks on it and Gail Huff today. We're now joined by Matt souls from credit cards dot com here to talk about some New Year's resolutions for people with their credit card debt and Matt. Thanks for joining us morning. Met a lot of talk about one of the tips that I had and I do this very often with my cable bill but I didn't realize it may work with. A credit card bill as well that's asking for a lower interest rate negotiate. Yet negotiation is really. Is really possible we've secured credit card companies a lot of people might not believe that that we didn't surveil while back which showed that even though only about warnings for cardholders. Have never asked for a lower rate of about two thirds of those who didn't ask we're successful. So that means that a lot of people are paying more interest than they need to be. And met we can apply for a balance transfer. Yeah balance transfer credit card can be a pretty good option for both of a lot of debt especially. One as they can't win it 0% introductory period and couple of the cart that we recommend are this late from chase which has no interest on balance transfers for fifteen months. And no balance transfer if you do in the first sixty days after getting the card. There's also the city's diamond preferred art which it pays zero interest for two point one months which is a really long time. Although it does come with a 3% downstream Thursday. Now obviously you have to determine how you got to death in the first place but. Some suggestions may be if you're consistently spending beyond your means happy new cut down on that. Creating a budget can be hit very useful thing as being a little bit of a road map to help you controlling spending contracting it. We if you know being. Explicitly. How much money Ukrainian and how much money is going out. That can be a bit of an awakening to people and can help people control themselves the world that. Cutting expenses like maybe maybe you don't need that premium TV package. Or maybe that gym membership you haven't been there in the past. Five months. Yeah I guess cutting the cord on cable or skipping and. Or even selling something of value they'd be alone. They just mean not use anymore those can all those are all little things that they can be impacts all. We knew at that walloped together. Matt when we talked about credit card rates heading into. 246 team with with the Federal Reserve having just done that really just executed their first. Interest rate hike in about ten years there has bumped up rates on some cards correct. Yeah generally speaking peoples credit party dealers have gone up by that same quarter points. That the Fed raised the race and even though people might not really noticed that yet. If you add on be the reader or more rate hikes that a lot of people they're coming. After awhile you will start to notice that pile up the best is yet another incentive to pay that debt down. Do you have any information on what what type of balance most people are carrying on their cards that that interest is applied to. Generally speaking that the average. How old bit has credit card debt has that. Nine or 101000 dollars in credit card debt not a lot of money builds you think about. Cutting interest rate on that you can end up saving hundreds of dollars potentially. Yeah it's it is it's very real money. What are other hot tips do you have for people that are looking to get there affairs in order from a credit card perspective. Heading into next year. Well really it's all about again like we've said kind of knowing yourself is making sure that you kind of understand. You're yours situation as it relates to cars and that one thing that can help. If you're somebody who habitually late Payer is setting up all okay. That is something we kind of take some of the worry out of your hand as well if you make sure that it for an amount to more than an. Yup yup very good will matter I appreciate you joining us and to you and your family happy new years. Nationals from credit cards dot com. Yeah I wanna talk about actually we have a trivia winner don't week. We do Steve from Burlington and Steve is getting a free Mott congratulations Stephen he had the answer New Zealand. And the question was in what country all of The Lord of the Rings movies filmed and Steve had the right answer with New Zealand there big news coming out of ConocoPhillips. Today. In that they appeared to be first in line to be the first company to actually export crude oil from the United States in forty years. Imagine that with less than two weeks ago at that the president you remember. Did sign that legislation it lifts the band that's been in place for forty years so. Will actually have oil that's going to be leaving Texas. That's where it was pomp and it's gonna be heading to a refinery in Switzerland that'll be the first oil to leave for our shores. That we've exported in in forty years pretty exciting it. It's pretty exciting to see that I think and you know we took. Only two weeks PRD have those first ships leaving some companies were pretty quick to make plans there. But on the backside of this an article from the Wall Street Journal today saying in the title is from oil glut and shortage some say it could happen. And but this is this is something that we do have to consider probably not in the new year turnout in the next six to twelve months. But down the road from that you may end up in the situation it looks a little bit different from what we have to. Well it's a cycle a glut leads to lower prices that leads to investment cuts which chokes apply that prompts the price gain. And that leads to renewed expansion. And more glut so it is a cycle arm and if if that were to happen I guess some people would would be thrilled others not so much. Yet it it really is a classic business cycle here where. Initially you see significant demand and so prices rising we we saw the price of oil rising. I don't wanna say was necessarily based on significant demand rather run restricted supply from OPEC who would. Earl Long time not sent out all of the oil that they were producing there. And what we saw them is there was all this investment money that poured in chasing after those returns and eventually. He mind with when you're talking about oil drilling it's not something we simply sign a contract you're getting that oil tomorrow with a lot of these complicated projects where your drilling offshore weary doing fracking. It's 123 years down the road before you're really up to full capacity in some cases and so you end up with this over development and then. If you really capped that off with the fact that. Saudi Arabia and OPEC come out and say you know what. Bracken a cap oil anymore we're gonna start to sending out anything we have and that's why you in this situation here's you have to have some consolidation. You have to absent filtering out it's not pretty. But when he talked about it a classic business cycle this is this is a textbook example. What producers are pumping out two million more barrels a day. Yeah and is needed yeah I mean two million barrels a day that is that's incredible yeah crude has fallen almost 70%. Since June 14. Deb any talk about some of the problems that is is not even anywhere to put in a lot of cases you have you have a lot of tankers that are just sitting offshore holding oil because either A they don't wanna sell at these prices are beat. They get back anywhere to put it on shore right you know so these are very real problems that you're seeing. Another quick story here Airbus is delaying the delivery of their first 8320. NEO until 2016. They're 4400. Orders for for this new plane it's going to be delayed for a few weeks not not too long just a few weeks and that's because. Apparently Pratt and Whitney had some engine issues they had some problems with the engine so it's going to be put off for a few weeks but. A lot of people excited about in a new jet that's going to be coming on line very soon Qatar Airways is going to be the first to use. Yeah and this is an airplane that. It's pretty much a an update of their A 320 which forms the backbone of a number of weeks big difference it's gonna be about 15% more fuel efficient. Then their existing planes a lot of companies are looking to do this as a way to cut cost and hopefully gain a little bit of an edge. In the ultra competitive battle. That we seat. For airlines today we are out of time for the day though. Gail I hope that I unit then we have a great new years. Q and same to you and through all of the listeners thanks so much and not happy New Year's to all absolutely you've been listening to the financial exchange in the insurer match dot com studio. I. Security suffered through securities America and remember finreg SIPC and advisory service operatives securities America advisors announced on her Jennifer Armstrong advisory group and the securities America companies are unaffiliated.