>> welcome to rob black and your money. i am your host or rob black. i am talking all things financial. joining us right now is mark dannon. >> first, let's talk about the headlines. >> let's talk about the report just came out about homes sustained low. do we

worry? >> you want the home builders to be excited. when they are excited and they do permits. permits are a sign that they will hire blue- collar people. this boost the economy and people can pay their bills. homebuilders are always excited period. this is how theo business. my biggest concern mark, more and more we are talking about money bills that are tried to buy a home. >> my answer, it is not good for young people out there. >> there are buying a lot a place stations. the ps for just came out and they sold a lot of them over the first week. >> this is still good for something? >> it is good for something

that they got their new product out there. also it is a sad part bread it is good for games. it is good for . at some point in time that leads us to the game stopped, best buy or amazon. the downside is that tablets are eating into the market. to appoint that consoles will be over. >> i am not quite there. it is a good holiday season. people are buying. >> the x box of one is scheduled to come on next week. >> boeing is having bad publicity.

>> remember, and we were talking about the 787 and leave them batteries. it was not going very well but it long story short. i was telling people to buy their stock. they have orders. airbus is having problems. they make missiles that go or around the world to kill people but they also make airplanes. there airplanes last forever. can you imagine, 20 years? >> this story is intriguing because it is a tide toward the middle east and how much demand is. that tells them as investor that i should look for an exchange rate. you do not buy planes unless you plan to do business. that means higher top stock markets. >> there are rumors about a offer to buy.

>> they turned down facebook. it is fascinating and i think right on, i am happy and excited. i hate virtual trails on line. there are pitchers out there that i do not want people to see. so they sent a text message or something inappropriate and it disappears. that is what all the children should think about to protect their identity in the future. this is tied towards 30 percent of college. they stated that the look on line and is your history and what you do not want is for something--a halloween costume or a beer in your hand, something that they will judge you want a kick you out of college. >> i think it is the future. less is more. >> let's talk about

finances. most americans do not like to talk about finances. >> maybe, it is redundant. but if you do one thing, let's get people to talk about money. 56 percent of parents over 50 they do not talk about anything. they do not talk about if they have enough to live on when i get ready to die. if you cannot answer questions like an adult than you are a child. you should have a binder with all of your financial information just in case you get hit by a bus, if your children can go to this binder and say here is the life insurance policy. americans do not like talk about this we are ashamed of money, if i can do once favor, you should talk to your children about health care and money. >> if i have a health care issue they need to know.

>> i just thought i would put this all out there. >> there stating that black friday sales are born to be lower this year. does this make you worry about retailers? >> you axed the right question. i liked the idea. would that be said i think retailers, are getting excited. it is down 14%. they're down from 20% a few years ago. this is a good trend, more people are just going on line and stand on with their family. we do not need to hear about people getting trampled on on thanksgiving because they want the tv. this is a loser for wal-mart but it winner for amazon. >> the only it is all about mobile. sales are getting

higher. >> i did this sort with the leisure about apps. facebook wants to switch to mobile. the cell forces are going to have new software and they're want to have a new convention this week. they're talking about the future and i think the buzz word that things are moving to tablets into phones. >> companies like oracle and ibm and one of the best tech companies no one knows. it is expensive but one of the ceos that i know he is a rock star. anything that he says, i am writing that down because he is it on- line imagination. >> google will open the show

runs. with the amount of money that goes their kids and mattel, barbie is not for christmas. children want tablets. what is want to be cool is that they will have this note that as life-size. you can go when the snow globe with fake snow and you can take photos. the importance of this holiday season with the tech companies is that they're doing the right thing by getting from a people. >> thank you very much mr. dannon. >> we will talk about reverse mortgages. i will also look that some your e- mail's.

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>> let's talk about wall street and the stock market. let's bring in that experts. we will talk about some of the current investment concerns. >> there is always something to worry about. i have been in the business for 20 years and there's always something going on in the middle east and the market and the currency issue that concerns people and make them fearful about investment. there are some that are real and you should rebalance your portfolio. >> sometimes you accelerate and you have to tap your brakes. there are concerns. it causes concern but to the fact that some of the house money has to be off the table. in one of the biggest ones is that people who are closer to retirement are

investing in bonds instead of their 401k. you should look that's your portfolio from may 2013 where bonds increased by 100 percent in terms of interest rate. some of them high of high decoration and a lot of mortgage rates tend to 15%. a lot of investors are close to retirement think they have to invest with the year. >> they're taking a lot are risks in terms of capital preservation. >> you mentioned before about investing--and give me more about what you mean by killing off. >> higher the erasion if you havhe the rationed, the

calculation is that when you aren't dealing with is often not perfect read when it comes to pilling off the growth there are certain areas of the stock market where you buy them when the price ratio is low and then the time that you peel off is when everyone is piled into it when you start to bomb but above average tenure number on prices and you have spent some of your cash this is a perfect time to appeal the salt and replenish it. the problem is when the market is doing well people forget about the bad times and that they need cash. >> it is a good time for you to do that now. >> let's talk about some leveraged closed-end funds. >> closed end funds, mutual funds are what most people

investing. ets. they're more popular. they can trade at a premium or discount. you get some of the closed-end funds and a sell-off of good or people buy them when they're getting bills. they are leverage and the manager is borrowed money to buy more bonds and to get more in come. those are really sensitive. when you are looking at a closed-end fund you are looking at a 6 to 7% tax-free in come. you could still end up losing 15 to 20%. the line what do we need to know? >> people were calling into these a lot in 2012 and as soon as this all the interest rates increase their realized that mortgaged bonds pay

interest bolts type of things and long-term government treasuring bonds. i would rather have a stable valued at a lower rate tthat has safety. >> we were just talking to mr. burton. actions that you can take to cut down on risk. the p/e ratio and ps operations. >> you have to look at what ever sector venture in. you realize that they have a p/e ratio that may trade at one level right now, a lot of people have been buying them and switching them. and again, and you buy when they're low and you train and take your profit when it is high. the price assails

is sometimes more important you are looking at the price a stock purchase revenue. it >> let's pull up his contact information. you can find him mad a new foat newfoucus.co >> coming up we can check the e-mail's. we will get you to where you need to be.

to those who've worried... suffered in silence... hoped... and lived in a state of fear... welcome to a new state... of health. welcome to covered california. the place to find quality, affordable coverage. financial help for those in need. and nobody can be denied because of a pre-existing condition. enroll now at coveredca.com. >> welcome back. this is my favorite guest. ms. o'connell how does reverse

mortgages work? >> reverse mortgages a home equity loan with a twist. this is for people more least 52 years old and they do not have to make payments as long as they live in their home. this allows them access their home equity over the years to reduce and retirement. >> they state that it may be too much in common that it will mess up their medicare or their social security. does the reverse mortgage interfere with that? >> it does not. it is not in come technically, it is a loan and you are barring from your home equity that you pay back. it is not taxable. if you do not claim it on your taxes. when you file your taxes--it is a perfect supplement for other kinds of income. >> i like it because it is selling your home without selling at. you can do it

with a reverse mortgage if you are 62 years old. it is the same concept. are there any restrictions? >> you can draw funds to pay off your existing mortgage up to the limit. you have a certain amount that is based for you based on your value of your home is your age. they have a new restriction on the amount of cash that you can take because they're are recent programs within this reverse mortgage that people have taken the full lump sum. s h eight insurance program and they are putting in more in a financial aspect to keep this money stretched out. >> people come to meet who are housed ridge, a cash poor and they're looking for financial planning trips i send them to someone like you and is governed first mortgage for poor people, needy people, or what the

people? >> it is 4 and needy people and there are lot of people or looking for some social security and that want to stay in their home. they have almost all their money in their home and this is a big part of the market. for people who have a retirement portfolios they really should look into this. it is tax-free money and if they can't take money from their home equity in conjunction with their investment this will lower their income-tax and make their retirement portfolio extent and last longer. it will have longevity. >> using this home, which needs to be on the table as far as an asset for retirement is very important. reverse mortgage

is a tool that allows you to do that. >> if you are over 62 years old and you have a house. you want to give your kids more of an inheritance. consider a recourse mortgage because you can draw more from home instead of your 401k. this set things up wisely. give me an example. >> one thing is that you can delay your social security payments until you are 70 years so. that increase pitcher payments until about 35%. and another thing the lot of people are holding mortgages when there in retirement and it just doesn't make sense to pull money from your investment to make a mortgage payment. the reverse mortgage can pay off your existing mortgage and get rid of your payments. you can have a more balanced retirement. another thing is the thought of having the need to need a

long-term care. people want to stay in their home and a lot of times the long-term care insurance is costly or prohibited. >> the reverse mortgage offers you a line of credit that grows. it increases the based on the interest rate. you have this growth and over the years this can be substantial. if you have this nest egg that she can use for long-term care if you need it. if you end up not needed, is just simply your equity and could go on a great vacation. >> when someone called to talk about reverse mortgages were just a conversation go? >> first of all i ask them questions about what they what their needs. their thoughts about equity. at lot of people have this feeling that they do not want to use their home equity because they want to give it to their kids. really, kids usually want their parents to do the best

they did not want them to have to sacrifice for that. we really need to find out what their needs are and maybe they just want to downsize or moved upon the is more suitable. i just want to talk with people to see what is best. >> you can find her online at maggieoconnell.com >> next we will talk about financial planning and your e-mail's coming up.

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cannot afford to buy in the bay area. >> do not feel ashamed that you cannot buy. when you factor in the taxes and all the scenarios you cannot always afford to pay 25% of your incomer. if you cannot do it, just over a period maybe you can get a trust and exposure to real estate. maybe you just buy a retirement home down road. the bay area is very, very expensive. >> a trust is about saving about $40,000 to pressure to stay on to your heirs. it takes a lot of information private. that is why trust is more important and well. >>

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