Good intentions are always top of mind, but what happens when we don’t see what could happen. We get unintended consequences. Our first episode that covered this was widely appreciated so we are bringing you another one.

Download the transcription here:

Episode 026 – Unintended Consequences Pt2

This is Market Insights from Southwest Investments, where we dig into current events and how they affect the markets but also how they might impact your financial future.


Rick:                 Welcome to Southwest Investments. I’m Rick Zich, your host. I’m a manager and financial advisor here at Southwest Investments. Joining me is Bart Schannep. How are you doing Bart?


Bart:                 I’m doing terrific. Thanks for having me on.


Rick:                 Excellent. I’ve been going back to some of the videos that we’ve been doing. One of the most popular and things that we’ve received the most feedback from is the one that we had about unintended consequences. Remember that?


Bart:                 Yes.


Rick:                 That was a lot of fun. Let’s do another one because I’ve got a really interesting one.


Bart:                 Part two?


Rick:                 Part two.


Bart:                 Okay.


Rick:                 Unintended consequences part two.


Bart:                 Bring it.


Rick:                 Alright. Here are the two things that have been happening. Number one, the government increased unemployment benefits to the people that have been furloughed because of the whole COVID-19. The amount that they increased it by, this isn’t what they increased it to. What they increased it by was $600 a week, which is about $15 an hour, which is what the Democrats think the minimum wage should be. That’s what it’s been increased by, so it’s pretty good for people.


Bart:                 Well, that’s pretty good. However, as we learned from not just the most recent recession but how we relearn about every recession is the more lucrative you make unemployment benefits, the longer people remain unemployed.


Rick:                 That leads us to this next thing. That was part one of this thing. The Republicans in this relief package wanted to make sure that businesses also got support. We got the employees getting the support through the unemployment, increased unemployment. Now the businesses are getting this paycheck protection program, PPP. A lot of people are hearing about it, heard about it, how it ran out of money in two weeks.


Bart:                 Right.


Rick:                 This is where a company can get a loan from the government through the SBA, Small Business Administration and that it’s a portion. There are some calculations.


Bart:                 It’s a ratio.


Rick:                 Exactly. The really good thing about this is that if you use it to pay wages to employees that have been either furloughed, laid off, whatever the case might be, you bring them back, and you can then ask the government to basically give that money for free.


Bart:                 Right.


Rick:                 You don’t have to pay it back.


Bart:                 Right.


Rick:                 That’s fantastic. Businesses are loving this. Tell me the problem.


Bart:                 Well, if you don’t bring them back, it’s a loan you do have to repay, but it’s only at one percent interest.


Rick:                 That’s right.


Bart:                 What you’ve got is you’ve got companies that can take that cash and either use it as a super low loan or it can work out that if you’re getting free labor from employees, that increases your profits.


Rick:                 That’s right. Now, the one other thing about that is if you’re increasing profits, you’re increasing taxes. The government is really getting a lot of that money. I shouldn’t say a lot of the money back. They are getting some of the money back.


Bart:                 Yes they are.


Rick:                 There are quite a few unintended consequences in this whole thing that wasn’t necessarily thought of all the way through because all of this legislation got done in roughly three weeks.


Bart:                 Right, during the scariest times when the virus was the scariest.


Rick:                 Absolutely.


Bart:                 Yes.


Rick:                 Very interesting things. Thank you for joining us today. If you have any comments about this, I’d love to hear them again. Go ahead and send us an email. Visit us on the website. We look forward to seeing you next week.


Sarah has been working at Southwest Investment Advisors since October of 2017.

Hers is the first friendly face you will encounter when visiting the office.

Sarah’s responsibilities include assisting clients with online access, processing account documents, scheduling meetings and assisting in all aspects of client services.

When she is not working here you may find Sarah on the shooting range serving as an assistant instructor and safety coach.

She has two children, son Zach is a graduate of the University of Arizona and daughter Paige who will graduate in 2019.


Kataya has been with Southwest Investment Advisors since January of 2017.

She assists Alix with portfolio construction, rebalancing, and trading.

Kataya also plans our company’s client appreciation events and assists with the company website.

In her free time Kataya enjoys spending time with her family and her dog, traveling to new places, and getting involved with local events.


Lacey has been with Southwest Investment Advisors since 2007 and has been the Operations Manager since 2012.

Her primary duties are assisting clients, assisting Advisors, processing paperwork, and working with our back office at LPL Financial.

When she’s not working she enjoys riding horses and spending time with her husband, Dustin, her two small children, and her dogs, Tebow and Ellie.

Lacey and her family really enjoy traveling, spending time outdoors, and watching her dad, Robert Wright, play the banjo.


Robert has been an Advisor since 2012 following in the footsteps of both his father and grandfather. He holds a Bachelor’s Degree in English Literature and graduated Summa cum Laude from BIOLA. After working several years in Social Services Robert has a distinct perspective when helping people create and manage their financial goals.

When Robert is not working, life is all about family. Along with his lovely wife, Robin, four beautiful children and their dog, he enjoys traveling in the family bus, which is always an adventure. He enjoys meditating, praying, journaling and plays the guitar daily to maintain his sanity!

Meet with Robert:

Licensing and Regulatory​:

Licenses: Series 7, Series 63, Series 31 held through LPL Financial and the Series 66 is held through LPL Financial and Southwest Investment Advisors


Partner and Co-Founder, has been in the industry since 1994. He has degrees in English and Liberal Studies as well as a Teaching Certificate from California State San Bernardino. In addition to meeting with clients, Rob assists in the investment selection process. He writes the newsletters and correspondence and works closely with our Advisors to ensure that we present a timely, consistent message to our clients. He also participates in marketing efforts such as workshops and seminars.

Before becoming a Financial Advisor, Rob was a member of the New Christy Minstrels and he continues to perform with his banjos and other stringed instruments in concert as a member of the Wildcat Jazz Band throughout North America and as a guest artist with local symphonies and at various music festivals. Rob and his wife, Linda have one daughter and two grandchildren.

Licensing and Regulatory​:

Licenses: Series 7, Series 63, Series 31 held through LPL Financial and the Series 66 is held through LPL Financial and Southwest Investment Advisors


Bart has worked as an Investment Advisor since 1983.  He was with Dean Witter/Morgan Stanley for fifteen years, serving as Branch Manager during the final four years, before moving to Piper Jaffray as Branch Manager for an additional three-and-a-half years before co-founding Southwest Investment Advisors.

Bart’s primary role is to conduct client meetings and oversee our investment selection process.

In 2008, Bart become one of the first 200 professionals obtaining the industry’s newest designation, the Certified Wealth Strategist® designation, and administered by Cannon Financial Institute.

In May, 2010 Bart was selected for the distinction of Outstanding Advisor of the Year by Registered Rep Magazine, one of 10 financial advisors selected by the editors for 2010. From hundreds of nominees, the winning advisors have demonstrated both business success and leadership in serving as guides to other financial advisors and as active participants in community activities.

Additionally, Bart is licensed as a General Securities Sales Supervisor and is an Arbitrator of the FINRA (formerly NASD) Dispute Resolution.

He is active in his church and served as President of the Board for Gospel Rescue Mission of Tucson from 2007 – 2010 and 2015 – 2018.  Bart also has served on the Board of Adjustments for the town of Oro Valley from 2002 – 2008.  Bart and his wife Marcella have three grown children and several grandchildren. Together they enjoy wine tasting, scuba diving, and travel.

Licensing and Regulatory​

Licenses:  Series 7, Series 8, Series 63, Series 15, Series 5, held through LPL Financial and the Series 66 held through LPL Financial and Southwest Investment Advisors

BrokerCheck: Regulatory information here.


Rick is in charge of the managerial duties at Southwest Investment Advisors.  As a Financial Advisor, he meets with new and existing clients and helps with problem solving.

He has a Bachelors of Science in Business and Marketing from Purdue University and an MBA from the University of Phoenix. His past 20 years of business experience includes roles of Controller, CFO, and President of consumer goods companies with double digit growth for over a decade.  He and his wife own a local jewelry boutique, Trinity Diamonds.

Outside of the office, Rick enjoys keeping up with the latest in tech news, scuba diving, hiking, playing the electric bass guitar (well, trying to), and keeping the dogs happy with long walks.

Meet with Rick:


Alix’s primary roles in the team are portfolio management and client contact. She focuses on building and maintaining client relationships and reviewing and constructing portfolios that reflect clients’ individual goals.

Alix holds a BS in Business Administration from Pepperdine University, where she studied both in Malibu, California and Florence, Italy. She started with Southwest Investments in 2009 on the operational side of the business and has built her way to the sales side.

In 2014 Alix obtained one of the industry’s newest designations, the Certified Wealth Strategist® designation, administered by Cannon Financial Institute.

When she’s not in the office, Alix enjoys traveling and exercising with her husband Phil, singing at the Vineyard Christian Community, and meeting up for tea or a cold brew. She has a wonderful family and close group of friends and is excited to be a part of the team here at Southwest Investment Advisors.

Meet with Alix: