Harris & Trump – Girl & Boy or Something Else

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Harris & Trump – Girl & Boy or Something Else

The recent release of Kamala Harris’ physical fitness medical records is significant for several reasons, and I think it’s important to look at it in the context of the ongoing debates around presidential health. We’ve seen similar releases from both Donald Trump and Joe Biden in the past. Trump, for instance, had some legitimate concerns about Biden’s health, given their age and the rigorous demands of the presidency. But now, with this release, the argument over which of these older leaders is in better physical condition seems less relevant.

What’s interesting to me is whether this will matter to the public. Will anyone care enough about these details to shift their opinions or reconsider their political leanings? Will it move the needle at all, or will this simply be another data point that fades into the background?

I believe the real issue here is not so much the health of the individuals, but rather the question of who stands ready to step into the role if needed. Our country has a long history of vice presidents who were thrust into the presidency under unexpected circumstances. Harry Truman, who was relatively unknown before he became president, is a great example. Then there’s Lyndon Johnson, who took office after Kennedy’s assassination and shaped the country in profound ways.

We’ve also had close calls, such as when George H.W. Bush almost became president after the assassination attempt on Ronald Reagan. These moments remind us that the vice-presidential position holds more weight than some may think. For our industry, this raises a critical point: the vice-presidential candidates need to be scrutinized more closely.

From my perspective in the financial services industry, I can say without hesitation that I don't find the current Democratic vice president competent enough for this level of responsibility. In a world where the vice president could become president at a moment's notice, we need to pay closer attention to these individuals. It’s not just about who’s at the top of the ticket, but also who’s waiting in the wings.

Break – Disclaimer

I recently received a contact form as a result of our podcast from a listener living on the outskirts of Naples. First of all, a big hello and thank you to Allison for becoming a regular listener and for reaching out through the contact form. Allison asked a great question about fixed income, guaranteed income, and contractual income—she’s really paying attention to the concepts we’ve been discussing. Specifically, she asked, “How much contractual income do I need, and how should I think about it?”

Now, this is a very individual question because it depends heavily on your overall income situation, including what you're receiving from Social Security, pensions, dividends, interest, and capital gains. When we think about income planning, we need to remember that just as there are fixed and variable expenses in life, there are also fixed and variable income sources. Fixed income sources are things like Social Security and pension payments—income that stays steady over time. Variable income sources, like dividends or investment returns, can fluctuate based on market conditions.

The most important thing I want to emphasize is that you want to ensure that 120% to 130% of your fixed expenses are covered by fixed income. Why is this important? Think of it like the government’s poverty threshold. For various federal programs, they track whether people qualify for certain benefits based on whether they have income at 130% of the poverty level. I apply a similar concept when it comes to planning your income.

For example, if you need $10,000 a month to cover your regular, fixed expenses—the things you pay for every month, like housing, utilities, and groceries—then I’d like to see you have at least $12,000 to $13,000 per month of fixed, contractual income. This buffer is essential because while your expenses might stay steady for now, inflation will erode the value of that income over time. The extra cushion gives you room to adjust, especially as living costs increase or unexpected expenses arise.

The reason for building this buffer is that contractual income, while reliable, doesn’t necessarily keep pace with inflation. If all you do is cover your expenses exactly, you’re leaving yourself vulnerable to rising costs down the line. By ensuring you have a margin above your current needs, you can keep pace with those rising costs without feeling financial strain. And if your income consistently exceeds your expenses, you’ll have peace of mind knowing that you’re protected from financial shortfalls in the future.

Allison, you're in a unique situation because, thankfully, the condominium you live in hasn’t been affected by the recent storms—your power is intact, and there’s no damage. But many of your neighbors are facing significant disruptions. Those who have a steady, reliable source of income above and beyond their immediate needs are going to be better able to weather these disruptions in the long term, whether those disruptions last weeks, months, or longer.

That peace of mind, knowing your financial foundation is secure even in the face of life’s uncertainties, is invaluable. It’s not just about covering your expenses today; it’s about ensuring that you’re financially prepared for whatever comes next. I'll be discussing this concept in more depth on future episodes, but for now, I’d recommend that anyone in a similar situation start by assessing their current expenses and income. Having a good handle on those numbers is the first step toward building a secure, inflation-proof financial future.

I'll be diving into this further in the upcoming podcasts, so stay tuned for more on how to balance fixed and variable income streams to maintain long-term financial security.

45 – Second Break

I recently read an article discussing the legal battles brewing around teachers refusing to use the preferred pronouns of transgender students. This issue is stirring up tensions between personal beliefs and professional responsibilities in schools across the U.S. It all started with John Kluge, a music teacher in Indiana who refused to use trans students' preferred pronouns, citing his Christian beliefs. After initially being allowed to use only students' last names, complaints from students eventually led to Kluge leaving his position. Now, he’s fighting to get his job back in court, and his case has become part of a larger national conversation about religious freedoms versus transgender rights.

The core of this debate hinges on whether a teacher’s religious objections can override a student's right to be respected and recognized for their chosen identity. Supporters of trans rights argue that denying the use of preferred pronouns causes harm, while some states have passed laws protecting teachers who refuse on religious grounds. The courts will have to navigate this conflict.

Now, as we look ahead, it's clear that this issue will likely lead to more litigation. Who would’ve thought that something as simple as what we call ...