hi, welcome to "on the money." i'm becky quick. what does warren think? and why taking out a mortgage may have been one of the best financial moves either. house calls, now you can get a doctor at your door again. there's an app for that. made in the usa, who would it hurt and who would it help and could it cost you money? the rise of row boats, should you let a machine make big decisions when it comes to your retirement? "on the money" starts right now. this is "on the money", your money, your life, your future. now, becky quick. >> we begin with made in america, president trump is promising to bring jobs back. could u.s. workers fill jobs

here that moved overseas? and what would it mean for your wallet. as courtney reagan reports, there are costs and benefits for american made. that's our cover story. >> building set brackets is 100% made in the usa, to assembly to packaging, the toy industry association says small businesses are the brains behind most u.s. made toys. but that's a small sliver of the $25 billion spent annually. >> everyone says you're made in the u.s., how did you do it? we support you. the conversation turns to is it cost competitive on my store shelf. >> domestic production comes at a higher cost and that's also the case when manufacturing apparel where made in the usa is it rare. it is not extinct, this 400,000

square foot factory in new bedford, massachusetts has 740 workers and they make 1100 suits every day but it is a rare example because 98% of the clothing and shoes sold in the u.s. is made abroad. it hasn't always been that high but there are a lot fewer u.s. textile mills and factories than years cost. skilled sewing labor at low cost is extremely hard to find. >> we don't have the workers with the skills necessary to do it. >> reporter: couple the supply complaints with years of fall ago parl prices and you have a difficult setup to make the economics work. but joseph has made it work. manufacturing suits here in massachusetts for 30 years. >> we're really proud to be made in america but our distinction is we make it well in america, the customer is so smart today. >> the problem for many mid tier

rea tailers is the place behind the made in the usa label may be too high. >> many americans want to buy american made products but intent and action are two different things. the higher prices often deter shoppers who end up choosing the less expensive foreign made good. becky? >> thank you very much. as courtney was talking about, the number of manufacturing jobs in the united states has been on a 30-year decline. could that trend reverse? january nifen and drew greenbratt, chair of the national association of manufacturers. thank you both for being here today. courtney mentioned 98% of clothing is manufactured overseas at this point. is there anything that can bring them back? >> if we brought them back it would have to be extraordinarily automated, even with a highly high tariff because the cost of producing abroad is so low and

shipping is not that much. for most of it we haven't made the product in america forever, it would take lots of time but those factories would have to be so automated that the jobs would be maintaining equipment more than it would be producing the product. >> still jobs but not necessarily the jobs we're thinking. >> they would be very small. most of it couldn't come back because it's too expensive. >> drew, that's when it comes to some of these product lines, we're talking about with clothing and shoes, what about other items, things like manufacturing for steel or other issues, could they come back to the united states if you had something like a tariff? >> i'm optimistic about american manufacturing. we're going to see an american manufacturing renaissance, it's coming fast. what's happening is so many new policies will be enacted and it will make america more attractive to bring back opportunities to our country, for example, we're talking about reducing regulation 75%, cutting

our tax rate from 40 something% down to 15%. i acknowledge some industries are not going to come back here because it makes more sense to do it elsewhere but making airplanes and bulldozers and cars, it's going to grow and thrive here. >> what about what jan just said about the skills gap that exists if you're looking for maybe different jobs to help run the machinery and those, do you think we'll get those jobs back that we think of traditional manufacturing jobs you don't need to go to college and get a very high paying job and have benefits that last for a long time, are those jobs coming back? >> i think so. you're right though, there is a significant skills gap. we need schools to be teaching math, english, the stem educations, these things are critical to create the talent pool so we can hire these people. we make everything in baltimore city. we export to 39 countries. we make baskets for auto motive and toyota and general motors

and caterpillar and boeing. they are growing factories in america and poised pore big expansions as these policies improve. >> you think we can turn the clock back? >> what he just described is a 15-20 year program if you can do it in terms of training. conception you'lly i'm in favor, it would dampen demand here and increase saving and bring back jobs and we would get exports. in the short term, the disruption would be enormous and my retails would go broke and we wouldn't bring those jobs back. this is real little a tax on the poorest people on america if we do this and it results in rising prices to get there. longer term maybe it's great, they have better jobs and it all works, in short term that could be painful. the creative destruction of retail would go faster. i find it frightening.

for the country, i think it would be a net positive long term. >> for manufacturers like drew. >> exactly. >> thank you both for your time today. >> thank you. >> now here's a look at what's making news as we head into a new week, stocks slam through another record, powering past 21,000 mark, barely a month after smashing through the 20,000 record. the nasdaq and s&p 500 setting records of their own. those stocks rebounded on friday. america's economy grew at a plotting pace the last quarter of 2016. the second reading of the gross domestic product which is the broadest measure of the size and scope of the u.s. economy was unchanged 1.9%. consumer spending was strong while business investment and government spending fell. a billion of anything is a lot but when you mul pli by 365, it turns out more than a billion hours of youtube videos are

watched every day worldwide, according to the company. to put it in perspective, if one person were to try and watch all of that it would take about 100,000 years, give or take. up next, we're "on the money", forget the long wait in a physician's office, you can have a house call within an hour. rise of the machines, why more and more people are trading in their financial adviser for a robot, sort of. this is how the stock market ended the week.

it may have been a while since a doctor appeared at your door if you weren't feeling well

if ever. now there's a new app that can send a doctor straight to your door within an hour. it was started by a husband and wife team. >> we've been watching health care prices have been going up, it's a huge concern for people. renee, is it something i can get a doctor to come to my door affordably? >> absolutely. that was our biggest concern. we want to make it convenient, affordable and patients to have access. these are all parts of our mission statement. >> how much does it cost in general? >> one of the neatest thing, we're in network with all of the major ppos. >> did that tie take a while? >> it sure did. we always kept the price of $99 if you don't have insurance or don't want to use your insurance. once we did get those insurances lined up, over 85% of our patients now do use their insurance to obtain our service. >> that's great. nick, i know it's a situation where your doctors don't handle

emergencies, what kind of calls would they come out for? >> they can do anything done in a doctor's office, lab draws, annual physicals, sports physicals for kids, post discharge, come out of the hospital and need care. people sometimes assume the doctor's office has some major stuff but we bring all of that magic with us to your home and do it right in the privacy of your own home. >> these are real doctors, right? >> absolutely, licensed and that's a process for us. licensed to practice medicine. they've been trained and on visits with me and a team of other people who supervise. what a house call should look like. >> why do these doctors do it? >> they love it. 80% are seen by full-time physicians that work with us. they love it because they want to spend time with their patients. medicine, the way it's become, you're behind a computer when you're practicing and you're filling out forms and signing

things, you're not relating to your patients anymore and developing a rappaport with the patients. >> i know the app is available in some cities in california. do you have expansion plans to go beyond that? >> we announced last week we're planning to expand nationwide over the next 12 to 18 months. ultimately our passion from day one has been fixed medicine for patients and providers and payers and accessibility has been a big part what we want to do. we're taking it outside of california. >> thank you both for telling us about it. >> thank you for having us. >> thank you so much. >> up next, we're "on the money", the rise of robos coming for your money. is it worth the price you pay? >> what he is selling and why.

if you want professional advice when it comes to retirement it is going to cost you. technology in the form of robo advisers is helping cut prices. how do you know if it's right for you? the ceo and founder of betterment, thanks for being here today, john. >> thanks for having me. >> what is a robo adviser. >> it is the auto mason of the

tasks that constitute good portfolio management to make more of your money. >> how does it work if i call up and say sign me up? >> you come to up and sign up and we ask about your goals and ask about your personality and we learn all about you. based on that we tell you how much to save, what accounts to open and we maximize that money for you in ways that the traditional financial firms can't because they don't have the technology or incentives to do the right thing. >> putting me in bond funds and figuring out how risk adverse i may or may not be? >> think about the industry this way. for a long time it's dominated by mutual fund companies trying to sell you whatever is on the shelf or brokers selling you whatever makes the most money. there has not been a firm, an igs constitution that standing up for customers doing what's right for them every time -- >> van guard has done just that.

>> not true. he says open index funds but they have a robo adviser now too. justin vest in our funds. >> if you're investing in a fund that tracks the s&p 500 it doesn't matter who's selling it to you? >> that's the old way to think of managing your money, just buy an index fund. that doesn't work anymore -- >> it worked very well for the last ten years. >> not actually make the most of your money. you can do better than that. i love this because the industry has led people to think you can't do better than that -- >> warren buffett says you can't do better than that. >> he isn't aware of how much better you can do. b warren buffett has people doing his own taxes. >> that's his point, all of the rest of us will not know enough to do this. how have your funds performed versus the index funds. >> we outperform every year.

>> tell me the numbers over the last year -- over two years, five years. >> every year 1 to 2% more than they could make -- >> do you promise them yet? >> output because of the way we reduce your tax bill. >> nobody can promise they can beat -- >> betterment can. >> to every single person you're going to beat the index fund? >> it depends on your personal situation always, but on average we improve by 1% a year. >> tell me the numbers. >> just because of taxes. >> slow down, this is -- >> this is a big deal. >> i'm incredibly skeptical. tell me the numbers, you can tell me you can beat the index funds every year? >> because of the way we manage your taxes on average and over time we'll outperform by 1 to 2%. >> the index funds? >> correct. >> you will outperform the s&p 5001 to 2% every year? >> think of how most investors invest, most time the market -- >> not what most people do. this is if you were to put your

money in the s&p and let it ride you will beat the performance 1 to 2% including fees you charge which are higher -- >> let's talk about what investors do. >> let's talk about investing in the s&p, that's what you're saying you can beat. >> if you're focused narrowing on that, only in an s&p. >> which is what i do? >> not a well diversified fund. >> that's what warren buffett told me to do. >> that's not good advice. >> you have better advice. >> absolutely. >> i'm highly dubious -- >> understand. >> i do not believe you can back up these results. >> i guess you're not listening to me, i've been telling you examples of how we make more money. >> tell me numbers. >> it depends on your personal situation every time. it's because how can i tell you how much they can save on taxes, it depends on your personal income and what state you live in. all of these are factored in and always working for you in a way the old industry is not -- >> i'm not arguing -- this is part of it, i'm not arguing the

old industry, it charges high fees and go along with this. >> it isn't really working for people. we have this idea we should have to manage our own money and it should have hard and difficult. i'm saying financial services has not been providing enough service for decades, it's time to expect more from our financial services companies and finally now there's robo advice we're doing that. >> okay. as i said i'm skeptical and appreciate your position and time coming on. >> thanks so much. >> up next, a look at the news for the week ahead and warren buffett is selling, this time we're talking about real estate, why one of the world's richest men took out a loan and it does seem to have paid off for him. >> if you get a 30-year mortgage, it's the best instrument in the world. she's got that gorgeous 20-something skin.

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here are the stortryes coming up that may impact your money. on money we'll see how much americans spent during the month of february and get how busy factories were in the first month of the year. wednesday marks international women's day, it celebrates the social and cultural and political achievements of women. on friday we'll see how many jobs were created last month and it marks the beginning of south by southwest, that festival in austin. artists and enthusiasts will gather for a few days of conferences and concerts and partying too. warren buffett is known as one of the best advisers, but it turns out he's also pretty good

at picking real estate. we sat down and asked why he's selling his long time vacation home in california. >> we went there for summers for many years and it became much more going there at christmas for maybe three weeks or so and kids would gather. but they couldn't gather for the whole smerz, they got adults. it had all of these great times there. we had -- we always had people there. but when my first wife died in 2004, at that point i lost interest in the house. and my kids continued to use it to some degree subsequently, but now they've got other interests in terms of vacation spots closer to where they live or something of the sort. the time has come to sell it. >> $11 million, that is a phenomenal growth and you said this is just the listing price. >> when i bought it for 150,000, i borrowed money from great western saving as and loans and probably only had 30,000 equity. it was the only mortgage i had

for 50 years or something of the sort. i guess i thought interest rates were attractive. >> why did you have a mortgage on it? you didn't need one, even in 1971? >> why did i have a mortgage on it? i still thought i could probably do better with the money than have it all be equity purchase of the house. that 110 or 20,000 i borrowed, i was buying berkshire constantly in the early 1970s, i might have bought 3,000 shares of berkshire with the proceeds from the loan, $750 million now. >> $750 million instead of putting it into the house. >> instead of having all equity purchase, right? >> what about now, people can get a mortgage for 3.5, 4%. >> if you get a 30-year mortgage, it's the best instrument in the world if you're wrong and rates go to 2%, you pay it off.

it's a one way renegotiation. i mean, it is an incredibly attractive instrument for the homeowner, berkshire can't do that. we can't issue a 30-year bond and have it so we can call it off tomorrow at par. no way. and you as an individual can do it. it's a great instrument. >> for most people their home is their most valuable asset. is that the way it should be? >> should be for a great many of people. if you know you're going to live in an area for a considerable period of time, the home is terrific. i home i live in now i bought in 1958. and i wouldn't trade it for anything. it's got all kinds of good memories and kids, it's home to them, home to their friends. i mean, it's -- if you find a house you like and you're going to stay in the locale for a while, buy it with a 30-year mortgage and it will be a

terrific -- it's good for a family. >> how much of the home being a great purchase is reliant on being able to deduct your mortgage interest? >> that's certainly is a factor. i doubt very much that they take away the interest reduction in the end? all of these things come up so easy to talk about and try to do it and every home building and realtor and everybody in the country pounding on your door if you're a congressman. we'll see. >> my thanks to warren buffett. that is the show for today. thank you everybody, for joining us. next week, distracted driving, why it's on the rise and one new app may not be helping things. keep it here we're on the money. have a great weekend. we'll see you next one.

hello, this is options action live this friday afternoon. the guys are getting ready behind me, while they are doing that, here's what's coming up on the show. >> look up in the sky, it's a bird, it's a plane -- >> no, it's just certain components of the dow jones industrial average. and we'll tell you which dow stuck could soon pull back. >> call it the perfect storm. >> that's what some traders are saying is about to happen to gold. we'll tell you just how low they see it going and how you can cash in. and -- >> mr. run and snap. >> too late. >> maybe not. there could be a w