Listen: Bill Gross, Pimco, Gary Goldberg discussed on Money Matters with Gary Goldberg
"Goldberg on money matters. There are certain legendary figures in the financial world. I am not one of them, by the way. But there are some who really are the mount Rushmore of the financial industry and one of them has just gone into retirement. Another one, unfortunately died a few weeks ago that was John Bogle the founder van God. But the name William gross, the band king is going into retirement for those of you who do not know the name, Bill Gross. He co founded pimco the biggest bond firm in history. They had about two trillion dollars in bond business, and he left them back in four or five years ago. I think it was two thousand fourteen to go. Join Janice Henderson investments, and he was in the industry for about forty years. And he decided that he was now going to leave and one of the things that I remember very clearly is when he was. Was talking about investments, and I am now telling you this in relation to the bond market from me to you. Ladies and gentlemen, is no growth opportunity of any consequence in bonds. He said investors act like complacent frogs sitting in a pot of slowly boiling water. And I think bond investors right now would be better served using dividend stocks. I am a fan of dividend stocks bond. Investors get almost nothing for their money. Whether it's taxable or tax free. They kind of gotten used to it. But they don't realize how bad it is not to earn money on your capital. I know a lot of people used to go into bonds because they had purported safety. Of course, you had to be in high rated bonds, if you were in junk bonds, you remember what happened with junk bonds they had to change the name to high yield bonds. That's how bad joke bonds became during the Mike Milkin days, they still sold lower-grade bonds, but they re. Enabled them instead of junk bonds. They will high grade bonds, they still are nothing. We would touch you. Don't need them people bribe bonds because of safety you don't buy bonds for speculation unless you're speculator. So now Bill Gross has left the bond market as a man who sat at the top of the industry, and he was really a terrific bond manager in his day as the co founder of pimco another thing aside from the bond market that people use for safety were annuities and the noodles come in different sizes and shapes. We use variable annuities at our firm because they do provide the safety that we think our clients need for their retirement money. And if you hear bad wording from one particular individual who's against the new because he does not sell them. He sells stocks in some ETF's. We do sell stocks ETF's dividend paying stocks we use. Mutual funds, and we use variable annuities that are firm where they are appropriate. If you want to explore the world of variable annuities, and if you have any I will directly tell you what I think of your nudity. I'll tell you whether or not it could be managed. We only sell variable annuities where we can manage them. So we can move them around. But what you're really doing? When you go into a variable annuity is you're shifting the risk to an insurance company you pay higher embedded fee to the insurance company. They're not doing it as a hobby, but at the same time, if you wanna protect your money for your heirs if you wanna protect an income stream, you should explore the world of variable annuities, and I will help you do that. We have approximately six hundred fifty million dollars within our firm just on the annuity side of our business, and we manage a lot of money here, but six hundred and fifty million no small portion of people's assets and variable annuities are the only ones we. We use here. We don't set it. And forget it we manage it. You need to read the prospectus, of course, to find out the various course in the guarantees. But when we meet with you, if they are appropriate investments for you. We go over that with you because bonds don't protect you the way they used to in my opinion, and they certainly don't protect against inflation. And the thing I like about variable annuities as they insure you against the extreme long jetty, you get income for life for life, and they can keep up with inflation if properly selected and properly managed, so I suggest you can you be open minded about it. I'm a fan of it. And on that basis. I think that they work as opposed to bonds they are more expensive than bonds. But you're paying for the insurance of your portfolio. You have health insurance? You have life insurance. You have fire insurance you have jewelry insurance, they act as portfolio insurance. But again, you need to read. Read the prospectus, which of course, you get. If you have a meeting with us, and we give you a full explanation when we come back Robert Reich, the former secretary of labor in the late nineties under Bill Clinton is going to be my guest. Stay tuned. You're listening to Gary Goldberg on moneymatters. You're listening to money matters would."