Tag Archives: Dawn Bennett

Dawn J. Bennett & Joran Goodman Discuss President Trump

Dawn J. Bennett, host of the nationally syndicated radio show
Financial Myth Busting, recently interviewed Jordan Goodman on her show. Goodman is a former journalist at Money, the leading personal finance magazine, as well as the host of Money Answers, a weekly national radio show. Goodman has also authored 14 books, with The Ultimate Guide to Student Loans being the most recent.

On Financial Myth Busting, Bennett and Goodman discuss President Trump. Bennett notes that Trump’s Inaugural Address was provocative. In it he says his presidency will be a real break from the past eight years.

Goodman says the address was much like his campaign speeches. “It did not have the usual soaring rhetoric that people are used to in these kinds of things,” he says. “It was ‘America first. Hire American. Buy American. Forgotten people.’ It was very much like his campaign speeches, and I think he’s going to continue the same way, whether people like it or not.”

Goodman says he is hopeful about Trump’s presidency. He explains that Trump is a businessman and is going to run the country like a business, which has certain advantages.

“It’s the government, different from business, but getting regulations down… we’re vastly over-regulated,” Goodman says. “The industry that you’re in, the financial services industry, this fiduciary rule that’s coming is a good example of massive over-regulation for a problem that didn’t exist that much, and it’s going to hurt a lot of people, both financial advisers and customers. I think that could be rolled back or eliminated.”

He continues, “I think in the energy industry, we have a huge amount of regulations that are preventing drilling, environmental regulations and so on. I could go through a whole series of things. With Obamacare, 20 million more people have gotten insurance than had it before, but at a huge cost. People can’t afford these premiums, which on average went up 25 percent on January 1st. Arizona, 116 percent. Many states over 50 percent. That’s because of regulations. So, if you get regulations down, you’re going to free up what John Meynard Keynes, the economist, used to call the ‘animal spirit.’ I think you’re already seeing that, certainly, in the stock market, so that’s why I’m hopeful.”

Goodman says what he is most concerned with Trump’s presidency, though, is trade wars, particularly with Mexico, Japan, and China.

“He [Trump] has very strong rhetoric, and maybe that’s a bargaining ploy, and maybe it will work,” explains Goodman. “Maybe we’ll get better deals, maybe our trade deficit will come down with these countries, but I think the opposite could happen. If we don’t get a deal we want, and he does put a 35 percent tariff on them, they’re clearly going to retaliate and make it hard for American goods to go there as well. That’s my biggest economic concern. Then politically, I’m concerned about wars. In the South China Sea, or if we move the embassy in Tel Aviv to Jerusalem and that causes a Middle East war. Those are the kind of things I’m most concerned about on the down side. He didn’t get elected in China, so the Chinese aren’t his constituency. So that’s what I’m most concerned about is getting into trade wars.”

To view the complete discussion between Dawn J. Bennett and Jordan Goodman, click here.

Dawn J. Bennett, host of the nationally syndicated radio show Financial Myth Busting, recently interviewed Jordan Goodman on her show. Goodman is a former journalist at Money, the leading personal finance magazine, as well as the host of Money Answers, a weekly national radio show. Goodman has also authored 14 books, with The Ultimate Guide to Student Loans being the most recent.

On Financial Myth Busting, Bennett and Goodman discuss President Trump. Bennett notes that Trump’s Inaugural Address was provocative. In it he says his presidency will be a real break from the past eight years.

Goodman says the address was much like his campaign speeches. “It did not have the usual soaring rhetoric that people are used to in these kinds of things,” he says. “It was ‘America first. Hire American. Buy American. Forgotten people.’ It was very much like his campaign speeches, and I think he’s going to continue the same way, whether people like it or not.”

Goodman says he is hopeful about Trump’s presidency. He explains that Trump is a businessman and is going to run the country like a business, which has certain advantages.

“It’s the government, different from business, but getting regulations down… we’re vastly over-regulated,” Goodman says. “The industry that you’re in, the financial services industry, this fiduciary rule that’s coming is a good example of massive over-regulation for a problem that didn’t exist that much, and it’s going to hurt a lot of people, both financial advisers and customers. I think that could be rolled back or eliminated.”

He continues, “I think in the energy industry, we have a huge amount of regulations that are preventing drilling, environmental regulations and so on. I could go through a whole series of things. With Obamacare, 20 million more people have gotten insurance than had it before, but at a huge cost. People can’t afford these premiums, which on average went up 25 percent on January 1st. Arizona, 116 percent. Many states over 50 percent. That’s because of regulations. So, if you get regulations down, you’re going to free up what John Meynard Keynes, the economist, used to call the ‘animal spirit.’ I think you’re already seeing that, certainly, in the stock market, so that’s why I’m hopeful.”

Goodman says what he is most concerned with Trump’s presidency, though, is trade wars, particularly with Mexico, Japan and China.

“He [Trump] has very strong rhetoric, and maybe that’s a bargaining ploy, and maybe it will work,” explains Goodman. “Maybe we’ll get better deals, maybe our trade deficit will come down with these countries, but I think the opposite could happen. If we don’t get a deal we want, and he does put a 35 percent tariff on them, they’re clearly going to retaliate and make it hard for American goods to go there as well. That’s my biggest economic concern. Then politically, I’m concerned about wars. In the South China Sea, or if we move the embassy in Tel Aviv to Jerusalem and that causes a Middle East war. Those are the kind of things I’m most concerned about on the down side. He didn’t get elected in China, so the Chinese aren’t his constituency. So that’s what I’m most concerned about is getting into trade wars.”

To view the complete discussion between Dawn J. Bennett and Jordan Goodman, click here.

Dawn Bennett Writes Article, “The Year Ahead,” Regarding the Economic Year Ahead

Dawn J Bennett, CEO and Founder of Bennett Financial Services and host of Financial Myth Busting, recently published an article titled “The Year Ahead,” regarding the economic year ahead and her financial predictions for 2016.

“I’ve been saying for over a year that the so-called “recovery” being promoted by the government and mainstream media is propaganda to cover failed policy initiatives from both the White House and the Federal Reserve,” said Dawn Bennett. “Real Americans just aren’t seeing the supposed benefits. A good example of this is this year’s holiday retail numbers. Consumer spending is especially important to the United States, because it makes up 70 percent of our GDP, and holiday retail sales have been disappointing if not depressing.”

“Looking at the numbers from credit card companies, Black Friday sales were down by nearly $1.2 billion, which is good neither for the retail sector nor the economy as a whole. Why? Well, aside from the obvious facts that we simply don’t have the money or the job security to spend-spend-spend, there may be other reasons. AlixPartners, a consulting and research firm, took a look at consumer spending trends over the last year. They reached the conclusion that weak holiday retail numbers are partially a result of upper-middle class shoppers being scared by a fluctuating stock market and waiting until the last minute to shop. And with 300 point drop in the Dow last Friday, it seems like that volatility will remain a factor for even last-minute shopping. Reuters reported that sales growth for the holiday season is expected to be half what it was last year at this time. It seems like high income and low income families alike will be spending less on the holidays this year.”

Below are Dawn Bennett’s predictions for 2016:

  • Prediction 1: The Fed will continue tightening monetary policy (not a one-and-done rate hike) until our fragile economy rolls over even more.
  • Prediction 2: The junk bond asset class is going to continue to liquidate. This started in August and September of this year, but really became apparent in the last several weeks. The media hasn’t given it much focus, but they should, since every major crash traditionally starts with a single asset class the first domino to fall.
  • Prediction 3: Corporate profits and revenues will continue to be weak, along with manufacturing and exports in general, pointing to the fact that we are already in a recession.
  • Prediction 4: The Fed’s rate hike will prove to be very painful. It will continue to soak up liquidity for 2016, which could be as much as $800 billion in excess liquidity taken out of an already fragile and illiquid system.
  • Prediction 5: Greece’s problems will become exponentially worse and Europe’s along with them.
  • Prediction 6: Gold and silver have a strong potential to rise 25 to 50%.

Read more from Dawn J Bennett here: http://www.releasewire.com/press-releases/dawn-bennett-writes-article-the-year-ahead-regarding-the-economic-year-ahead-652454.htm

 

3 Big Reasons to Plan Ahead for Retirement

If you are young now, you’ve probably heard financial analysts like Dawn Bennett talking about the many reasons to plan ahead for retirement. The realities are scary: a great deal of new growth is in low-paying jobs like retail, and many of those employers don’t offer full time or benefits to most employees, forcing them to work multiple jobs to make ends meet. Because of this, and the increasing cost of living, many twenty-somethings are still living with their parents as a matter of practicality. These facts are unattractive at least, and frightening at most. Here are some of the factors that make planning ahead for retirement an absolute necessity in today’s economic climate:

time to retire stopwatch

Interest Rates Aren’t Rising

We have a lot of debt as a country, something that most people are aware of. Increasing the amount we owe by raising interest rates seems like a bad idea in that context; however, it may be necessary to combat our increasing debt levels. Essentially, we have to pay off the money at some point, but since we have made very few inroads in that regard and simply keep raising the debt ceiling, Americans will continue to see higher costs of living. With most jobs unwilling or unable to provide the kinds of wages that will support people in this climate, the middle class will continue to disappear and the poor will get poorer. Every penny that you can put aside for retirement now is an investment in your future comfort.

Retirement Age is Rising

Since people aren’t able to save as much early on and pensions are being cut, many seniors are working well past the traditional retirement age so that they can afford to live. While there are still some who can retire at 65, for most people that just isn’t the reality anymore. In addition, the technical age at which you can receive full social security benefits is rising to 67 for people born after 1960. And there have been predictions that it will rise even higher for newer generations. This is a disturbing idea, especially for younger people, so it’s important to start putting away money now and making investments to ensure that you have something to fall back on when you are older.

Social Security is a Safety Net – and It’s Being Threatened

There are several politicians out there who would like nothing better than to get rid of social security entirely. Why? Well, it depends on who you are talking about but, in many cases, the argument is that the money could be used to help pay off our debt and bolster other areas of government spending. The problem with this notion is that social security isn’t really big enough to make a dent in our national debt. But it would look good to some people – until they retired, that is. While it’s unlikely that the system would or could be taken out of commission entirely (as doing so would put a lot of people on the street), it’s not a bad idea to have a contingency plan in case the program sees drastic cuts.

Can the U.S. Realistically Be Like Denmark?

Those who have been following the Democratic side of the presidential race will notice that Bernie Sanders has been directing a great deal of the discourse, whether he has been leading in the polls or not. Clearly, people want change and many of them are looking to the person advocating the most radical moves. Sanders’ staunch cries for more government-funded programs, education, and healthcare, have struck a chord with citizens and have influenced even middle-of-the-road Hillary Clinton to start talking about how she would handle these issues.

Denmark map

Specifically, Sanders has compared our system with that of several Nordic countries like Denmark, which all share a rather more social system than exists in the U.S. These nations are well-known for their embrace of socialized healthcare and higher education, as well as their high quality of life, notable lack of crime, and the general contentedness of their populace. Despite Denmark’s record of success, however, many Americans and financial analysts like Dawn Bennett wonder whether the same principles could be applied to the United States effectively. After all, we have some very unique conditions and demographics that many believe would foil such a system.

For instance, while Denmark’s population tops out at 5.6 million people over 16,639 square miles, America has 321.7 million people spread over 3.8 million square miles. Not only are the people more spread out, but the types of people in the country are much more diverse as well. Denmark has had a very stringent immigration policy in place for years, which doesn’t allow for the entry of as many low-income workers and also doesn’t welcome as many people of different racial backgrounds. This obviously doesn’t mean that we should be pursuing a no-inclusion policy for people of foreign origins, but it does mean that we have some complications to work out that Denmark never really has to face.

On top of all that, there is the inevitable burden of higher taxes that would accompany any move towards socialized healthcare and education. Those living in these Nordic countries pay what would be considered insane amounts of taxes when compared to those we face (about 40% of income for a single person in Denmark). The tradeoff is that when it comes time to go to college or send a child there, neither parents nor students will have to pay. That $100,000 that has become a common expenditure for college-goers here would be completely covered – as would any emergency care or regular healthcare checkups, maternity leave, dental, etc.

While these services sound good, the question of whether or not our already fragile middle- and lower-classes could handle a higher tax burden is one that cannot be lightly dismissed. Bernie Sanders has laudable ideals and some interesting notions, but finding out whether his plans are practical would involve some risk-taking that the country may not be prepared for.

Why Japan’s Economic Hardship Matters to the U.S.

In light of recent outrage over Japanese Prime Minister Abe, Tokyo is awash with protesters and Abe’s approval rating has dropped by 39%, which has financial experts like Tres Knippa, member of the Chicago Mercantile Exchange, questioning Japan’s economic stability.

In a recent interview with Dawn Bennett, host of the nationally-syndicated talk radio show “Financial Myth Busting with Dawn Bennett”, Knippa argues that the stability of the Japanese economy is not just called into question as a result of political unrest; the Bank of Japan’s  increased purchase of government bonds is also cause for concern, given that the purchases are being made out of necessity, not as a part of some larger plot to weaken currency and ease fiscal policy in the fall. The bank is purchasing government bonds because there’s simply no other market for them.

Japan currently suffers from crippling debt and spends twice what it actually brings in tax revenue. Japan’s aging population isn’t helping matters. Knippa points out that what Japan needs more than anything else is additional bodies, not more currency.

A Lesson for the U.S.

Japan’s economic woes are unfortunate, but they have a larger significance, particularly for the United States. In many ways, Japan’s economic situation reflects the likely future of the U.S., as Japan was set on the same course of economic upheaval with a housing market that burst, a government bailout and subsequent low interest rates 16 years ago. In other words, we can expect something very similar in the near future if we don’t change course and reign in unwieldy government spending, which is what Japan failed to do, too. Heightened government spending in the face of growing public demand only exacerbates the economic challenges faced.

Japan’s economy shrank in the second quarter by 1.6% with decreasing exports (a decrease of 16% year-over-year), and while some speculate that Japan’s economy is suffering the consequences of a weakening Chinese economy, the influence of its housing crash, government bailout and zero interest rate policy can’t be ignored.

Interestingly, there may be an immediate upside to Japan’s economic crisis for those in the U.S.  Knippa notes that it can be wise for individuals to borrow from weakening currency like the yen. For example, if an individual takes out a mortgage in yen on a rental property (as Knippa did himself), but collects the rent in dollars, the mortgage principal decreases faster as the yen is devalued and the dollar strengthens. Knippa also advises that when investing in a sinking currency like the yen, it’s imperative to guard against the risk with a large investment in something more stable like gold.

Ultimately, though there’s a bright side for international investors in the short term, Japan’s weakening yen and overwhelming debt should serve as a warning to the U.S. above all else.

 

 

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com

 

What’s the Real Solution to Urban Poverty?

Recent unrest in cities like Baltimore have sparked an array of conversations about race, poverty, and the government’s role in helping individuals in these challenged communities find ways to build better lives. While some see poverty and ensuing violence in these areas as the product of lack of government initiative and funding, others like Fox News and Financial Times columnist Liz Peek take a different perspective.

Peek recently sat down with financial expert Dawn Bennett, host of the “Financial Myth Busting with Dawn Bennett” nationally-syndicated radio show, to discuss what she believes to be a lack of social structure, rather than a lack of funds.

Peek’s main point? Struggling cities like Baltimore aren’t hurting for government dollars; in fact, they’re some of the most heavily federally-funded areas in the country. If dollars alone could fix unemployment and persistent poverty, it would have solved the problem by now. Rather, money is squandered by corrupt public officials and is not directed toward programs that help urban youth develop the skills they need to become self-sufficient.

Peek believes the driving force behind these issues to be the inability of impoverished youth to envision a future for themselves, a future in which they’re gainfully employed and can provide for their families. Many students are also graduating high school with little to no knowledge of how to balance a checkbook or handle basic finance; thus, even if they could envision a future of financial stability, they’d lack the skills to manage it.  Peek also argues that the absence of adequate role models is a major contributing factor to this dilemma, as is the fact that schools no longer teach the technical courses that many students could put to use in promising careers. Skills like carpentry, mechanics, and other vocational skills have all but been eliminated from the high school classroom; yet, these exact skills are what urban youth could use to secure well-paying jobs and carve out a future for themselves.

Though President Obama has funneled millions of dollars into stimulus packages to spur the economy and has campaigned tirelessly for a higher minimum wage, Peek argues that neither of these initiatives actually creates jobs for low-to-middle income Americans. Stimulus dollars simply weren’t dedicated toward job-creating projects while higher wages only tighten the labor market, making it far less likely that employers will hire more workers. Higher wages might help those already gainfully employed, but it certainly won’t help the millions in poverty looking for a job.

Ultimately, Peek and Bennett believe that if we are to work toward stemming violence and poverty in some of the country’s most challenged urban neighborhoods, we’ll need to focus on providing the skills and resources its youth need to be independent and successful, rather than relying on money alone.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com