1 00:00:06,640 --> 00:00:11,880 Speaker 1: Tonight, the billion dollar giants that started as nobody's but 2 00:00:11,960 --> 00:00:15,600 Speaker 1: could already be hiding in your investment portfolio. This is 3 00:00:15,640 --> 00:00:18,840 Speaker 1: simply money presented by all Worth Financial on Bob's sponsller 4 00:00:18,880 --> 00:00:26,079 Speaker 1: along with Brian James. Sometimes the biggest opportunities lie dormant, quiet, unnoticed, 5 00:00:26,400 --> 00:00:29,440 Speaker 1: like a seed beneath the soil, Brian, and then suddenly 6 00:00:29,800 --> 00:00:31,840 Speaker 1: they explode into something massive. 7 00:00:31,960 --> 00:00:33,680 Speaker 2: Right now, we're going to prove to. 8 00:00:33,640 --> 00:00:37,239 Speaker 1: You why your portfolio probably has all the fuel it 9 00:00:37,400 --> 00:00:39,479 Speaker 1: needs if planned properly. 10 00:00:40,520 --> 00:00:43,599 Speaker 3: So let's start with company that has hit the headlines 11 00:00:43,640 --> 00:00:45,720 Speaker 3: an awful lot lately, and I'll bet it's older than 12 00:00:45,760 --> 00:00:48,559 Speaker 3: people think. So in Nvidia, when did you first hear 13 00:00:48,640 --> 00:00:49,159 Speaker 3: this company? 14 00:00:49,159 --> 00:00:49,440 Speaker 2: Bob? 15 00:00:49,520 --> 00:00:52,879 Speaker 3: Was it on January twenty second, nineteen ninety nine? It 16 00:00:52,920 --> 00:00:56,120 Speaker 3: was not, No, I kind of knew that, but anyway. 17 00:00:56,080 --> 00:00:58,240 Speaker 2: I was focused on beyond meat back then. 18 00:00:58,720 --> 00:01:02,680 Speaker 3: Yeah, yeah, and pets dot com making burgers out of 19 00:01:02,800 --> 00:01:07,319 Speaker 3: tree bark. Anyway, So January twenty second, nineteen ninety nine, 20 00:01:07,360 --> 00:01:10,440 Speaker 3: that's the day that Nvidia joined the NASDAK and lots 21 00:01:10,480 --> 00:01:12,560 Speaker 3: of people thought it was spelled wrong. That was six 22 00:01:12,680 --> 00:01:15,080 Speaker 3: years after it start in nineteen ninety three, came into 23 00:01:15,120 --> 00:01:17,840 Speaker 3: that index at twelve bucks a share by two thousand 24 00:01:17,880 --> 00:01:20,119 Speaker 3: and one, and video joined the S and P five hundred. 25 00:01:20,640 --> 00:01:22,679 Speaker 3: And by the way, at this time, they weren't obviously 26 00:01:22,760 --> 00:01:24,360 Speaker 3: there was no AI, there was no you know, there 27 00:01:24,360 --> 00:01:27,880 Speaker 3: were there was no crypto, But where it existed was 28 00:01:27,920 --> 00:01:29,959 Speaker 3: in the domain of computer nerds and video gamers. 29 00:01:29,959 --> 00:01:31,480 Speaker 2: And I can say that because I was one. 30 00:01:31,680 --> 00:01:35,360 Speaker 3: They They made video game cards for computers and graphic design, 31 00:01:35,440 --> 00:01:37,720 Speaker 3: those kinds of things, and those are the tools that 32 00:01:37,760 --> 00:01:40,920 Speaker 3: are behind the crypto run bitcoin mining, those kinds of 33 00:01:40,959 --> 00:01:43,479 Speaker 3: things as well as AI. So that's why it's become 34 00:01:43,520 --> 00:01:45,759 Speaker 3: so big so recently. So here's a fun fact though, 35 00:01:45,800 --> 00:01:48,480 Speaker 3: way back then, you know, there's only five hundred companies 36 00:01:48,520 --> 00:01:49,480 Speaker 3: in the S and P five. 37 00:01:49,400 --> 00:01:51,440 Speaker 2: Hundred, bob, right, so if you're gonna put one in, 38 00:01:51,520 --> 00:01:52,640 Speaker 2: you gotta pull one out. 39 00:01:52,920 --> 00:01:55,880 Speaker 3: What company did in video replace here's a fun one, 40 00:01:56,080 --> 00:01:59,720 Speaker 3: en Ron, remember that? Remember Rod basically made up there 41 00:02:00,080 --> 00:02:03,640 Speaker 3: accounting of the entire time and would mess with rate 42 00:02:03,680 --> 00:02:07,720 Speaker 3: payers in California and Texas and elsewhere just to squeeze 43 00:02:07,720 --> 00:02:09,800 Speaker 3: out profits. Well, that was a fun company to have 44 00:02:09,800 --> 00:02:12,200 Speaker 3: disappear from the S and P five hundred. But anyway, 45 00:02:12,240 --> 00:02:15,120 Speaker 3: and Vidia replaced it, and that became the poster child 46 00:02:15,120 --> 00:02:17,240 Speaker 3: of why having too much of your portfolio and one 47 00:02:17,280 --> 00:02:20,519 Speaker 3: single stock can lead to disaster. Enron obviously became a 48 00:02:20,600 --> 00:02:23,880 Speaker 3: much bigger disaster after that. But leaving the S and 49 00:02:23,880 --> 00:02:26,600 Speaker 3: P five hundred, what that literally means is that lots 50 00:02:26,600 --> 00:02:29,000 Speaker 3: of index funds have to dump your stock, So you're 51 00:02:29,040 --> 00:02:30,880 Speaker 3: gonna take a hit if you're no longer part of 52 00:02:30,919 --> 00:02:31,799 Speaker 3: the cool kid crowd. 53 00:02:32,280 --> 00:02:34,160 Speaker 2: So but a little more history on Nvidia. 54 00:02:34,320 --> 00:02:36,480 Speaker 3: By the end of two thousand and two, and Vidia 55 00:02:36,520 --> 00:02:38,840 Speaker 3: stock price was about nine cents a share. If you 56 00:02:38,880 --> 00:02:40,600 Speaker 3: owned the S and P five hundred at that time, 57 00:02:40,639 --> 00:02:42,639 Speaker 3: you did own it, you probably had never heard of it. 58 00:02:42,960 --> 00:02:45,280 Speaker 3: Then fast forward to two thousand and seven when Forbes 59 00:02:45,320 --> 00:02:47,200 Speaker 3: named in Vidia it's Company of the Year. This is 60 00:02:47,240 --> 00:02:49,320 Speaker 3: when this is really when things started to kind of 61 00:02:49,320 --> 00:02:51,600 Speaker 3: go forward for him, and that was due to the 62 00:02:51,600 --> 00:02:54,120 Speaker 3: accomplished the accomplishments they had during that period. And it 63 00:02:54,160 --> 00:02:56,320 Speaker 3: was still at that time only seventy eight cents a 64 00:02:56,400 --> 00:02:58,960 Speaker 3: share and still pretty much people had never heard of it. 65 00:03:00,080 --> 00:03:02,280 Speaker 1: Well, if you haven't figured it out already, the moral 66 00:03:02,320 --> 00:03:05,720 Speaker 1: to the story here tonight is diversification, have a good 67 00:03:05,760 --> 00:03:10,800 Speaker 1: diversified portfolio, broadly diversified between companies and industries, because you 68 00:03:11,040 --> 00:03:14,120 Speaker 1: never know when some of these companies are going to 69 00:03:14,200 --> 00:03:17,080 Speaker 1: rear their head and really start to take off, you know. 70 00:03:17,400 --> 00:03:20,480 Speaker 1: And we're talking about Navidia because everyone is now paying 71 00:03:20,480 --> 00:03:23,040 Speaker 1: attention and knows what it is. So when did Navidia 72 00:03:23,200 --> 00:03:27,600 Speaker 1: start to gain traction? Twenty sixteen, the stock jumped to 73 00:03:27,720 --> 00:03:29,840 Speaker 1: two dollars and sixty three cents a share. 74 00:03:29,960 --> 00:03:31,080 Speaker 2: The next year. 75 00:03:31,400 --> 00:03:34,120 Speaker 1: It catapulled it up to four dollars and seventy eight 76 00:03:34,200 --> 00:03:37,720 Speaker 1: cents a share. And we bet most people still hadn't 77 00:03:37,760 --> 00:03:41,360 Speaker 1: heard of Navidia back in twenty sixteen, but this is when. 78 00:03:41,200 --> 00:03:43,120 Speaker 2: It really started to rocket higher. 79 00:03:43,120 --> 00:03:46,360 Speaker 1: And again, you don't have to know about Navidia or 80 00:03:46,440 --> 00:03:48,800 Speaker 1: any of these stocks. If you have a broadly diversified 81 00:03:48,840 --> 00:03:54,200 Speaker 1: portfolio or just an SMP index fund, you're already participating. 82 00:03:53,520 --> 00:03:55,840 Speaker 2: Without even knowing. It. 83 00:03:55,880 --> 00:03:59,200 Speaker 1: Takes to take us forward to late two thousand and two, Brian. 84 00:03:59,680 --> 00:04:03,080 Speaker 3: Yeah, So in late twenty twenty two, that's when AI 85 00:04:03,240 --> 00:04:05,640 Speaker 3: really became a thing, when chat g Ept got released 86 00:04:05,680 --> 00:04:08,080 Speaker 3: and everybody started to pay attention to it, So that 87 00:04:08,440 --> 00:04:11,560 Speaker 3: lit a fire under demand for these data center products 88 00:04:11,560 --> 00:04:13,480 Speaker 3: that they have. That's where they store all these video cards. Right, 89 00:04:13,480 --> 00:04:15,600 Speaker 3: They're not shipping them out to individual computers anymore. 90 00:04:15,600 --> 00:04:16,240 Speaker 2: They're putting them. 91 00:04:16,200 --> 00:04:18,039 Speaker 3: In data centers, and that's where all of the AI 92 00:04:18,160 --> 00:04:20,720 Speaker 3: thinking is happening. Those had already been doing well, but 93 00:04:20,760 --> 00:04:24,360 Speaker 3: all of a sudden just exploded exponentially. That is probably 94 00:04:24,360 --> 00:04:26,599 Speaker 3: around the time that the average person who was not 95 00:04:26,640 --> 00:04:29,599 Speaker 3: already into technology began to understand what this company was. 96 00:04:29,920 --> 00:04:31,880 Speaker 3: By the end of twenty twenty three, that stock price 97 00:04:31,960 --> 00:04:34,240 Speaker 3: was around fifty bucks a share, and the last year 98 00:04:34,279 --> 00:04:36,520 Speaker 3: one hundred and thirty four dollars a year, and today, Bob, 99 00:04:36,560 --> 00:04:39,640 Speaker 3: it's right around two hundred dollars a share. Remember nine 100 00:04:39,839 --> 00:04:42,440 Speaker 3: cents nine cents of share is what it was worth 101 00:04:42,480 --> 00:04:44,400 Speaker 3: back in the at the end of two thousand and two. 102 00:04:44,440 --> 00:04:47,480 Speaker 3: So if you were an investor back then, you're doing okay. 103 00:04:47,560 --> 00:04:50,800 Speaker 1: Well in Navidio just became the first company ever to 104 00:04:50,880 --> 00:04:54,960 Speaker 1: reach five trillion that's trillion with the t in market value. 105 00:04:55,040 --> 00:04:57,960 Speaker 1: So imagine this if you want to feel really depressed 106 00:04:57,960 --> 00:05:00,200 Speaker 1: here on Halloween before you go trick or tree eating. 107 00:05:00,880 --> 00:05:03,599 Speaker 1: If you had invested five hundred dollars into video stock 108 00:05:03,680 --> 00:05:05,680 Speaker 1: when it was just nine cents a share. At the 109 00:05:05,839 --> 00:05:09,839 Speaker 1: end of two thousand and two, you would have one 110 00:05:09,920 --> 00:05:14,000 Speaker 1: point one two million dollars for a five hundred dollars investment. 111 00:05:14,320 --> 00:05:15,520 Speaker 2: But that's the problem. 112 00:05:15,600 --> 00:05:19,039 Speaker 1: Most people did not do this because it's really hard 113 00:05:19,080 --> 00:05:20,160 Speaker 1: to predict the future. 114 00:05:20,560 --> 00:05:21,920 Speaker 2: And here's problem number two. 115 00:05:22,000 --> 00:05:25,240 Speaker 1: Many people out there might be itching to just pile 116 00:05:25,279 --> 00:05:28,039 Speaker 1: into the stock right now at close to two hundred 117 00:05:28,080 --> 00:05:31,240 Speaker 1: dollars a share, many already have in the last two years. 118 00:05:31,279 --> 00:05:33,720 Speaker 1: We hear about this all the time because it's dominating 119 00:05:33,760 --> 00:05:36,560 Speaker 1: the headlines. But you know, the caution here is to 120 00:05:36,600 --> 00:05:40,280 Speaker 1: make sure you're not buying or putting too much money 121 00:05:40,360 --> 00:05:44,520 Speaker 1: into yesterday's winners because things have a way of correcting 122 00:05:44,600 --> 00:05:46,640 Speaker 1: and you just don't want to put you hear it 123 00:05:46,640 --> 00:05:50,200 Speaker 1: all the time, too many eggs in one proverbial basket. 124 00:05:50,720 --> 00:05:52,680 Speaker 3: Yeah, there's plenty of stocks out there right now, Bob, 125 00:05:52,680 --> 00:05:54,680 Speaker 3: worth nine cents of share. Some of them are going 126 00:05:54,760 --> 00:05:56,839 Speaker 3: to become the next Nvidia of twenty forty. 127 00:05:56,960 --> 00:05:58,640 Speaker 2: Yeah, most of them are going to go most of 128 00:05:58,720 --> 00:05:59,760 Speaker 2: them are going to go out of board. 129 00:05:59,800 --> 00:06:01,960 Speaker 3: This exactly the reason they're worth nine cents of share. 130 00:06:02,000 --> 00:06:04,800 Speaker 3: So you're still playing the lottery, all. 131 00:06:04,760 --> 00:06:07,400 Speaker 1: Right, you're listening to simply Money presented by all Worth Financial. 132 00:06:07,440 --> 00:06:11,440 Speaker 1: I'm Bob sponseller along with Brian James, an example of 133 00:06:11,480 --> 00:06:15,599 Speaker 1: a sure thing that absolutely plummeted. You know you mentioned 134 00:06:15,640 --> 00:06:20,160 Speaker 1: it earlier, Brian Enron. You know, I remember when everybody 135 00:06:20,200 --> 00:06:23,880 Speaker 1: wanted to own Enron, you know, in the late nineteen nineties. 136 00:06:24,080 --> 00:06:27,919 Speaker 1: You know, it was it was untouchable, nothing could go wrong. 137 00:06:28,040 --> 00:06:31,920 Speaker 1: Everybody wanted to own it. It was just printing earnings 138 00:06:31,960 --> 00:06:36,040 Speaker 1: and the stock was just going crazy. Walk us through again, 139 00:06:36,160 --> 00:06:39,880 Speaker 1: you're grat at explaining history lessons remind us of what 140 00:06:39,960 --> 00:06:40,919 Speaker 1: happened to Enron. 141 00:06:41,240 --> 00:06:41,880 Speaker 2: So Enron. 142 00:06:42,000 --> 00:06:44,600 Speaker 3: Enron was famous for just being really really good at 143 00:06:44,839 --> 00:06:47,880 Speaker 3: turning any energy trading into profits. You know, that's the 144 00:06:47,920 --> 00:06:49,880 Speaker 3: thing that has existed for a long time, but Enron 145 00:06:49,960 --> 00:06:51,159 Speaker 3: just took it to another level. 146 00:06:51,480 --> 00:06:53,760 Speaker 2: But that was the story before the story. 147 00:06:53,839 --> 00:06:55,919 Speaker 3: The real story was in two thousand and one, it 148 00:06:55,960 --> 00:06:58,400 Speaker 3: finally was revealed that they had basically made up their 149 00:06:58,720 --> 00:07:01,600 Speaker 3: balance sheets, the billions of dollars worth of debt and 150 00:07:01,680 --> 00:07:05,719 Speaker 3: falsified profits. They had lots of off book types of 151 00:07:05,760 --> 00:07:08,800 Speaker 3: investments out there. The stock dropped from ninety dollars to 152 00:07:08,960 --> 00:07:11,440 Speaker 3: under one dollar and the company went bankrupt. And let's 153 00:07:11,680 --> 00:07:14,680 Speaker 3: you know, pour one out for Arthur Anderson, the accounting 154 00:07:14,680 --> 00:07:17,120 Speaker 3: firm that was okay with all this and became no 155 00:07:17,240 --> 00:07:19,920 Speaker 3: longer one of the Big four back then. That's why 156 00:07:20,000 --> 00:07:22,560 Speaker 3: you don't hear that name anymore, because they turned a 157 00:07:22,560 --> 00:07:24,960 Speaker 3: blind eye to literally did not do their jobs. I 158 00:07:24,960 --> 00:07:27,120 Speaker 3: don't think of an accounting firm could do it, could 159 00:07:27,120 --> 00:07:30,000 Speaker 3: not do its job anymore than Arthur Anderson didn't do 160 00:07:30,080 --> 00:07:33,080 Speaker 3: its job. But anyway, great stories, glossy numbers, that doesn't 161 00:07:33,120 --> 00:07:36,600 Speaker 3: equal great investments. The transparency and the real actual earnings matter. 162 00:07:36,880 --> 00:07:40,040 Speaker 3: Don't hide things. It's gonna come out, all right. 163 00:07:40,040 --> 00:07:41,200 Speaker 2: And then let's talk about GE. 164 00:07:41,400 --> 00:07:43,320 Speaker 1: I mean, let's face a lot of people that listen 165 00:07:43,360 --> 00:07:45,880 Speaker 1: to this show are very familiar with GE. You know, 166 00:07:46,280 --> 00:07:48,600 Speaker 1: a lot of them probably worked there. It was the 167 00:07:48,760 --> 00:07:52,360 Speaker 1: can't miss blue chip, you know, forever for decades, GE 168 00:07:52,600 --> 00:07:56,280 Speaker 1: was the definition of a quote unquote safe investment. It 169 00:07:56,360 --> 00:08:01,560 Speaker 1: was in everything, power finances appliance, led by the legendary 170 00:08:01,640 --> 00:08:04,560 Speaker 1: leader Jack Welsh. At its peak in two thousand, it 171 00:08:04,640 --> 00:08:07,400 Speaker 1: was worth over six hundred billion dollars. Brian and I 172 00:08:07,400 --> 00:08:11,280 Speaker 1: can remember back then talking to actual clients that were 173 00:08:11,360 --> 00:08:13,960 Speaker 1: saying to me, Bob, why are we getting involved in 174 00:08:14,360 --> 00:08:17,520 Speaker 1: appliances and finances and why don't they just leave this 175 00:08:17,520 --> 00:08:21,000 Speaker 1: thing alone and let us make jet engines and lo 176 00:08:21,160 --> 00:08:24,760 Speaker 1: and behold over extension, bad acquisitions. And the two thousand 177 00:08:24,800 --> 00:08:26,200 Speaker 1: and eight financial. 178 00:08:25,760 --> 00:08:29,280 Speaker 2: Crisis brought GE literally to its knees. 179 00:08:29,320 --> 00:08:31,920 Speaker 1: The stock fell from sixty dollars a share to under 180 00:08:32,000 --> 00:08:36,000 Speaker 1: seven dollars a share, wiping out billions of dollars in wealth. 181 00:08:37,200 --> 00:08:41,439 Speaker 1: You know, even diversified giants can collapse if there's if 182 00:08:41,440 --> 00:08:44,360 Speaker 1: they're too complex to manage. And you know, going back 183 00:08:44,360 --> 00:08:47,640 Speaker 1: to my engineer friends, they were right if they had 184 00:08:47,760 --> 00:08:50,760 Speaker 1: just left this thing alone. Fast forward to today, the 185 00:08:50,800 --> 00:08:53,760 Speaker 1: most profitable part of GE and now that they've split 186 00:08:53,840 --> 00:08:57,920 Speaker 1: this thing off into pieces, good old ge Aviation right 187 00:08:57,960 --> 00:08:59,280 Speaker 1: here in Cincinnati. 188 00:08:59,800 --> 00:09:01,079 Speaker 2: It's that's been a fun turn. 189 00:09:01,280 --> 00:09:03,560 Speaker 1: This is why you shouldn't listen to the NBA nerds. 190 00:09:03,559 --> 00:09:05,840 Speaker 1: You should listen to people that actually make stuff. 191 00:09:06,720 --> 00:09:09,520 Speaker 3: These are the Yeah, these are the one of the 192 00:09:09,520 --> 00:09:12,439 Speaker 3: great stories here recently because ge Aviation obviously has been 193 00:09:12,440 --> 00:09:15,680 Speaker 3: on a heck of a run lately, reporting just record earnings, 194 00:09:15,760 --> 00:09:16,640 Speaker 3: very very recently. 195 00:09:16,760 --> 00:09:17,199 Speaker 2: But I do. 196 00:09:17,240 --> 00:09:19,160 Speaker 3: Remember, like we said, we got a lot of people 197 00:09:19,200 --> 00:09:20,760 Speaker 3: just down the hill from us here down and even 198 00:09:20,800 --> 00:09:23,200 Speaker 3: to a lot of clients that worked there or did 199 00:09:23,240 --> 00:09:24,200 Speaker 3: work there, and. 200 00:09:24,200 --> 00:09:25,560 Speaker 2: Rode this thing all the way through. 201 00:09:25,920 --> 00:09:29,000 Speaker 3: GE was actually I think the rock bottom point for 202 00:09:29,080 --> 00:09:31,600 Speaker 3: GE was in June of twenty eighteen when they were 203 00:09:31,640 --> 00:09:33,640 Speaker 3: removed from the Dow Jones. Right, we just got done 204 00:09:33,640 --> 00:09:35,920 Speaker 3: talking about people getting their companies getting removed from the 205 00:09:35,960 --> 00:09:36,840 Speaker 3: S and P five hundred. 206 00:09:36,880 --> 00:09:37,960 Speaker 2: That's five hundred companies. 207 00:09:38,280 --> 00:09:40,440 Speaker 3: The Dow Jones is thirty and if you get removed 208 00:09:40,440 --> 00:09:42,600 Speaker 3: from that, that's what that's the oldest index we have 209 00:09:42,760 --> 00:09:44,839 Speaker 3: out there, and GE got taken out of it back 210 00:09:44,840 --> 00:09:45,520 Speaker 3: in twenty eighteen. 211 00:09:45,640 --> 00:09:45,840 Speaker 2: Yeah. 212 00:09:45,880 --> 00:09:50,800 Speaker 1: But Brian, the real rock bottom was during that financial crisis. 213 00:09:50,880 --> 00:09:53,880 Speaker 1: I mean, I can remember Warren Buffett coming along and 214 00:09:53,920 --> 00:09:56,920 Speaker 1: making the deal of the century, writing a huge check 215 00:09:56,960 --> 00:09:59,560 Speaker 1: to GE to get preferred stock. I think it was 216 00:09:59,600 --> 00:10:03,560 Speaker 1: yielded like eighteen percent interest. If he hadn't come along 217 00:10:03,640 --> 00:10:07,280 Speaker 1: with cash in hand, they might have been in deep, 218 00:10:07,320 --> 00:10:10,359 Speaker 1: deep trouble. I remember that day like it was yesterday. 219 00:10:11,240 --> 00:10:12,920 Speaker 2: This is why Warren Buffett is. 220 00:10:14,360 --> 00:10:17,240 Speaker 1: The guy always steps up, always has cash on hand 221 00:10:17,400 --> 00:10:19,679 Speaker 1: to buy at the right time. And boy, that was 222 00:10:19,720 --> 00:10:23,840 Speaker 1: a great investment and really honestly help help keep a 223 00:10:23,880 --> 00:10:25,960 Speaker 1: great company, you know, in business. 224 00:10:26,160 --> 00:10:27,840 Speaker 2: Yeah, and they've gone back to their roots. 225 00:10:27,840 --> 00:10:30,480 Speaker 3: So I remember before all of this fell apart, I 226 00:10:30,520 --> 00:10:33,120 Speaker 3: remember referring to General Electric as its own mutual fund 227 00:10:33,120 --> 00:10:35,040 Speaker 3: because it was so it was the first fight holding 228 00:10:35,080 --> 00:10:37,160 Speaker 3: in itself. They had so many different things they were in. 229 00:10:37,440 --> 00:10:39,640 Speaker 3: But that obviously, you know, the pile got too big 230 00:10:39,679 --> 00:10:41,800 Speaker 3: and kind of collapsed on itself. So the answer has 231 00:10:41,840 --> 00:10:45,680 Speaker 3: been to split it into four companies. There's healthcare, Finance, Aviation, 232 00:10:45,880 --> 00:10:50,240 Speaker 3: and then the core appliances business left over here in Cincinnati. 233 00:10:50,240 --> 00:10:53,080 Speaker 2: We of course talked about ge Aviation. That's our beloved. 234 00:10:52,840 --> 00:10:55,559 Speaker 3: Jet engine plant there in Evendale, and so that has 235 00:10:55,600 --> 00:10:58,319 Speaker 3: been the answer to it. Took a long time to 236 00:10:58,360 --> 00:10:59,839 Speaker 3: get there, but we're in a much better position with 237 00:11:00,200 --> 00:11:00,560 Speaker 3: right now. 238 00:11:01,640 --> 00:11:05,480 Speaker 1: Here's the Allworth advice. Don't just chase the winners. Own 239 00:11:05,559 --> 00:11:09,480 Speaker 1: them before anyone even knows their name. And the best 240 00:11:09,480 --> 00:11:12,160 Speaker 1: way to do that is just a good old diversified 241 00:11:12,200 --> 00:11:16,679 Speaker 1: index fund or direct index portfolio. Coming up next, why 242 00:11:16,720 --> 00:11:22,280 Speaker 1: talking about money is so taboo? Plus Travis Kelsey's surprise 243 00:11:22,559 --> 00:11:26,080 Speaker 1: new investment that hits close to home and the college 244 00:11:26,160 --> 00:11:30,079 Speaker 1: coaches making seven hundred and fifty thousand dollars a month 245 00:11:30,440 --> 00:11:33,000 Speaker 1: not to show up at work every day. You're listening 246 00:11:33,000 --> 00:11:36,199 Speaker 1: to Simply Money, presented by Allworth Financial on fifty five KARC, 247 00:11:36,679 --> 00:11:44,920 Speaker 1: the talk station. You're listening to the Halloween edition of 248 00:11:44,960 --> 00:11:48,120 Speaker 1: Simply Money, presented by Allworth Financial. I'm Bob Sponseller along 249 00:11:48,160 --> 00:11:51,000 Speaker 1: with Brian James straight ahead at six point forty three, 250 00:11:51,080 --> 00:11:54,720 Speaker 1: The hidden force that could steer your portfolio in a 251 00:11:54,760 --> 00:11:59,560 Speaker 1: completely wrong direction? Did you know most Americans would rather 252 00:11:59,679 --> 00:12:03,719 Speaker 1: disc us politics or religion then open up about their 253 00:12:03,760 --> 00:12:08,080 Speaker 1: own personal finances. I find this a little bit surprising, Brian. 254 00:12:08,160 --> 00:12:10,800 Speaker 1: But give us, give us some new data that's come 255 00:12:10,840 --> 00:12:13,720 Speaker 1: across our desk from a couple surveys out there. 256 00:12:13,840 --> 00:12:15,960 Speaker 3: Yeah, well this is this one's not too surprising to me. 257 00:12:16,240 --> 00:12:17,839 Speaker 3: This is, you know, being raised in the Midwest. These 258 00:12:17,840 --> 00:12:19,600 Speaker 3: are not things that we discuss, are they? 259 00:12:19,640 --> 00:12:19,720 Speaker 1: So? 260 00:12:20,040 --> 00:12:23,559 Speaker 3: Latest financial taboos? Survey stuff we don't want to talk about. 261 00:12:23,840 --> 00:12:26,360 Speaker 3: Bankreat dot Com found that about six and ten US 262 00:12:26,400 --> 00:12:29,600 Speaker 3: adults said they're not comfortable talking about their bank account 263 00:12:29,640 --> 00:12:33,360 Speaker 3: balance with family or close friends. But by contrast, only 264 00:12:33,360 --> 00:12:36,600 Speaker 3: about two and ten are uncomfortable discussing political views or religion. 265 00:12:36,760 --> 00:12:38,720 Speaker 3: I'd love to compare that with maybe ten years ago 266 00:12:38,800 --> 00:12:41,000 Speaker 3: when we were all a little bit quieter about our politics. 267 00:12:41,040 --> 00:12:43,960 Speaker 3: But everything's gotten so much louder these days. But moneytops 268 00:12:44,000 --> 00:12:47,520 Speaker 3: even politics and religion in the don't talk about it category. 269 00:12:47,840 --> 00:12:49,800 Speaker 3: And what's more, about half of these folks said they 270 00:12:49,840 --> 00:12:52,520 Speaker 3: would be they'd be uncomfortable discussing their credit card debt 271 00:12:52,600 --> 00:12:54,719 Speaker 3: or their salary. I think this is evidence, Bob, of 272 00:12:54,800 --> 00:12:57,280 Speaker 3: people just being you know, a kind of ashamed or 273 00:12:57,320 --> 00:12:59,360 Speaker 3: scared to death about both of those topics. I don't 274 00:12:59,360 --> 00:13:00,960 Speaker 3: make enough, and I know a lot of people money, 275 00:13:01,000 --> 00:13:02,400 Speaker 3: and I don't want to talk about that with anybody 276 00:13:02,440 --> 00:13:03,040 Speaker 3: because I don't know. 277 00:13:02,960 --> 00:13:04,880 Speaker 2: The way out well. 278 00:13:04,920 --> 00:13:07,240 Speaker 1: And the other thing this makes me think of as 279 00:13:07,280 --> 00:13:09,839 Speaker 1: a topic we talked about earlier this week, I mean 280 00:13:10,080 --> 00:13:14,400 Speaker 1: this this whole long term planning conundrum for our older 281 00:13:14,480 --> 00:13:20,720 Speaker 1: folks out there. I think generationally and understandably so, people 282 00:13:20,760 --> 00:13:23,880 Speaker 1: don't want to talk about finances, and they really don't 283 00:13:23,880 --> 00:13:27,600 Speaker 1: want to talk about the prospect of losing their independence, 284 00:13:27,720 --> 00:13:31,800 Speaker 1: and that causes some of these needed discussions to get 285 00:13:31,840 --> 00:13:34,160 Speaker 1: shut down. You know, they don't talk to their kids 286 00:13:34,200 --> 00:13:39,199 Speaker 1: about it, and family discussions are not happening proactively enough 287 00:13:39,640 --> 00:13:43,320 Speaker 1: to do some real good planning as it relates to 288 00:13:43,440 --> 00:13:46,800 Speaker 1: long term care issues. And Brian, you and I see 289 00:13:46,800 --> 00:13:49,920 Speaker 1: it all the time. Unfortunately, what ends up, you know, 290 00:13:50,040 --> 00:13:54,360 Speaker 1: spearheading that discussion is a fall or a healthcare issue 291 00:13:54,480 --> 00:13:58,520 Speaker 1: or something you know that really sparks an emergency or 292 00:13:58,559 --> 00:14:01,280 Speaker 1: crisis type situation. And so, you know, I think we 293 00:14:01,360 --> 00:14:04,280 Speaker 1: have to learn from these studies and try to in 294 00:14:04,320 --> 00:14:07,880 Speaker 1: a responsible, respectful way, you know, talk about. 295 00:14:07,640 --> 00:14:11,080 Speaker 2: Things a little bit more than we likely do. Yeah. Absolutely, 296 00:14:11,240 --> 00:14:12,040 Speaker 2: I think it's important. 297 00:14:12,200 --> 00:14:14,920 Speaker 3: And just with regard to my own family, that's something 298 00:14:14,920 --> 00:14:16,880 Speaker 3: I decided a while ago, is just to let everybody 299 00:14:16,960 --> 00:14:18,760 Speaker 3: understand why, why do we why are we able to 300 00:14:18,800 --> 00:14:20,280 Speaker 3: live the way that we do, how we made the 301 00:14:20,280 --> 00:14:23,240 Speaker 3: decisions that we've made, you know, And I think it's 302 00:14:23,320 --> 00:14:26,680 Speaker 3: very important good, bad, are indifferent for younger people to 303 00:14:26,760 --> 00:14:30,040 Speaker 3: understand exactly how the puzzle pieces came together to create 304 00:14:30,080 --> 00:14:33,000 Speaker 3: the situation that currently exists. Give him some background, be 305 00:14:33,080 --> 00:14:35,000 Speaker 3: comfortable with it, find a way to have that discussion 306 00:14:35,000 --> 00:14:35,400 Speaker 3: with the family. 307 00:14:35,440 --> 00:14:36,400 Speaker 2: I think it's very important. 308 00:14:36,920 --> 00:14:39,360 Speaker 1: All right, let's talk about King's Island for a second, 309 00:14:39,520 --> 00:14:42,240 Speaker 1: and in particular, let's give a nod to University of 310 00:14:42,280 --> 00:14:46,840 Speaker 1: Cincinnati grad Travis Kelcey because he now owns part of 311 00:14:46,920 --> 00:14:49,440 Speaker 1: King's Island. Brian, I think this is a cool story. 312 00:14:49,640 --> 00:14:50,520 Speaker 2: It really kind of is. 313 00:14:50,560 --> 00:14:53,760 Speaker 3: So Travis Kelcey, now, he's of course from the Cleveland area, 314 00:14:53,800 --> 00:14:55,760 Speaker 3: so I don't think he's thinking of King's Island first. 315 00:14:55,760 --> 00:14:58,120 Speaker 3: He's probably much more thinking of Cedar Point up there, 316 00:14:58,120 --> 00:15:00,240 Speaker 3: and he grew up riding those great roller coasters up there. 317 00:15:00,480 --> 00:15:03,040 Speaker 3: But he joined a group that's investing in six Flags, right, 318 00:15:03,040 --> 00:15:05,560 Speaker 3: So six Flags is what now owns all of these places. 319 00:15:05,560 --> 00:15:07,400 Speaker 3: It used to be, you know, six Flags used to 320 00:15:07,440 --> 00:15:09,920 Speaker 3: be the exotic amusement park that we never went to 321 00:15:09,960 --> 00:15:11,800 Speaker 3: because there wasn't one anywhere near Cincinnati. 322 00:15:11,800 --> 00:15:13,320 Speaker 2: But now it's the one company owns. 323 00:15:13,080 --> 00:15:17,200 Speaker 3: All this stuff, forty two locations now across the United States, Mexico, 324 00:15:17,320 --> 00:15:20,040 Speaker 3: and Canada, and another one coming to South Saudi Arabia 325 00:15:20,120 --> 00:15:22,720 Speaker 3: in twenty twenty six. So why are we talking six 326 00:15:22,720 --> 00:15:25,600 Speaker 3: Flags and not Cedar Fair anymore? Well, six Flags merged 327 00:15:25,640 --> 00:15:28,120 Speaker 3: with Cedar Fair and so that includes King's Island and 328 00:15:28,160 --> 00:15:30,560 Speaker 3: Cedar Point, and so this group that Travis is a 329 00:15:30,560 --> 00:15:33,320 Speaker 3: part of now owns an economic interest of about nine percent, 330 00:15:33,400 --> 00:15:35,760 Speaker 3: or about two hundred million dollars worth of it, which 331 00:15:35,800 --> 00:15:38,280 Speaker 3: makes that group the one of the largest shareholders of 332 00:15:38,320 --> 00:15:41,840 Speaker 3: a two point two billion dollar corporation. And so when 333 00:15:41,840 --> 00:15:43,840 Speaker 3: he was asked about this, he said, well, I'm a lifelong, 334 00:15:43,880 --> 00:15:46,200 Speaker 3: lifelong six Flags fan and grow grew up going to 335 00:15:46,240 --> 00:15:49,000 Speaker 3: these parks with family and friends, and so the chance 336 00:15:49,000 --> 00:15:51,080 Speaker 3: to make six Flags special for the next generation is 337 00:15:51,080 --> 00:15:52,840 Speaker 3: one I couldn't pass up. So that it'll be neat 338 00:15:52,840 --> 00:15:56,200 Speaker 3: to see what this new energy injected into that world 339 00:15:56,400 --> 00:15:56,720 Speaker 3: is going. 340 00:15:56,680 --> 00:15:57,400 Speaker 2: To do for us. 341 00:15:57,560 --> 00:16:00,120 Speaker 1: Hey, by the way, do you think his fiance had 342 00:16:00,160 --> 00:16:01,640 Speaker 1: anything to do with that decision? 343 00:16:01,800 --> 00:16:04,680 Speaker 2: And is that a precursor to maybe a future concert 344 00:16:04,800 --> 00:16:06,080 Speaker 2: coming to King's Island? 345 00:16:06,480 --> 00:16:10,360 Speaker 3: You know, Taylor Swift at at Timberwolf, which is still there. 346 00:16:10,400 --> 00:16:13,720 Speaker 3: By the way, I'm not sure it's got the capacity 347 00:16:13,960 --> 00:16:15,560 Speaker 3: to hold on to that. But hey, by the way, 348 00:16:15,600 --> 00:16:17,520 Speaker 3: I wanted to say, I'm a fifty one year old 349 00:16:17,560 --> 00:16:19,760 Speaker 3: man and I rode the Beast a couple of weeks 350 00:16:19,760 --> 00:16:21,920 Speaker 3: ago and it was as awesome as it was. Yeah, 351 00:16:21,920 --> 00:16:23,480 Speaker 3: and when I was in high school, get out there, 352 00:16:23,560 --> 00:16:25,720 Speaker 3: ride it at night. They have improved it and it 353 00:16:25,720 --> 00:16:27,400 Speaker 3: doesn't feel like you've gotten hit in the head by 354 00:16:27,440 --> 00:16:29,480 Speaker 3: the two by four anymore, it's not nearly as beat 355 00:16:29,560 --> 00:16:31,360 Speaker 3: you up as it used to be. The racer, on 356 00:16:31,400 --> 00:16:35,040 Speaker 3: the other hand, not so much the racer. The racer 357 00:16:35,080 --> 00:16:37,600 Speaker 3: is probably starting to I don't know. I gotta think 358 00:16:37,640 --> 00:16:39,520 Speaker 3: there's a couple of pieces of wood that are starting 359 00:16:39,560 --> 00:16:41,920 Speaker 3: to rot on the loose screws, and I'm sure they. 360 00:16:41,960 --> 00:16:43,960 Speaker 2: Keep up with it. All a fun ride, though, all right. 361 00:16:44,160 --> 00:16:46,880 Speaker 1: Imagine a world where you are so bad at your 362 00:16:46,960 --> 00:16:49,680 Speaker 1: job that your employer will pay you to go away 363 00:16:50,080 --> 00:16:53,160 Speaker 1: and then keep paying you for years. Welcome to the 364 00:16:53,200 --> 00:16:56,720 Speaker 1: world of college football. Penn State is going to pay 365 00:16:56,760 --> 00:17:00,000 Speaker 1: fired coach James Franklin fifty million dollars over the next 366 00:17:00,160 --> 00:17:04,240 Speaker 1: six years. If Franklin does take another job, his compensation 367 00:17:04,400 --> 00:17:08,440 Speaker 1: at the new job may reduce what Penn State owes him. 368 00:17:08,720 --> 00:17:11,960 Speaker 1: And then you've got former UC coach Brian Kelvy. He 369 00:17:12,160 --> 00:17:15,680 Speaker 1: just got canned from LSU and they owe him fifty 370 00:17:15,720 --> 00:17:19,359 Speaker 1: four million dollars. Brian, let's break that down for those 371 00:17:19,400 --> 00:17:22,440 Speaker 1: scoring at home, that's seven hundred and fifty thousand dollars 372 00:17:22,480 --> 00:17:25,960 Speaker 1: a month. That's twenty four thousand, six hundred and forty 373 00:17:25,960 --> 00:17:29,200 Speaker 1: one dollars a day or a little over one thousand 374 00:17:29,320 --> 00:17:32,520 Speaker 1: dollars an hour just to sit in your recliner. 375 00:17:33,760 --> 00:17:35,399 Speaker 2: Not a bad gig if you can get it. 376 00:17:35,680 --> 00:17:38,760 Speaker 3: So there you go, kids, Your recipe for financial success 377 00:17:38,920 --> 00:17:41,440 Speaker 3: is be a little bit good as a football coach 378 00:17:41,520 --> 00:17:44,560 Speaker 3: until you get that big contract and then suck at it. 379 00:17:44,840 --> 00:17:46,880 Speaker 3: And that is the best bang for your buck you'll 380 00:17:46,880 --> 00:17:49,520 Speaker 3: ever gear you'll get for putting time into the day 381 00:17:50,080 --> 00:17:52,560 Speaker 3: getting paid to no longer do your job. 382 00:17:53,960 --> 00:17:56,840 Speaker 1: All right, every Sunday you'll find our all Worth Advice 383 00:17:56,920 --> 00:18:02,000 Speaker 1: in the Cincinnati Inquirer. Here's a preview of that article. Brian, 384 00:18:02,080 --> 00:18:06,680 Speaker 1: this one, this is right in your wheelhouse. Ha from Springfield, 385 00:18:06,920 --> 00:18:11,120 Speaker 1: Springfield Township says he's eager to start investing his four 386 00:18:11,200 --> 00:18:14,720 Speaker 1: oh one k in crypto in private assets, but he 387 00:18:14,840 --> 00:18:16,679 Speaker 1: wanted to get your take first. 388 00:18:17,040 --> 00:18:19,400 Speaker 3: Well, this is this isn't surprising to hear it all 389 00:18:19,480 --> 00:18:21,640 Speaker 3: because you know, we've been talking about this all year. 390 00:18:21,680 --> 00:18:23,920 Speaker 3: It seems like there's been a lot of movements a 391 00:18:23,960 --> 00:18:26,199 Speaker 3: foot to allow four one ks to open up to 392 00:18:26,560 --> 00:18:29,200 Speaker 3: permit some different types of investments rather than the more 393 00:18:29,200 --> 00:18:32,240 Speaker 3: traditional stock bond type of mutual funds that are that 394 00:18:32,280 --> 00:18:33,640 Speaker 3: are readily available in there. 395 00:18:33,880 --> 00:18:35,959 Speaker 2: So I don't think this is a terrible idea. 396 00:18:36,000 --> 00:18:37,840 Speaker 3: I'm the last person who's going to say we need 397 00:18:37,840 --> 00:18:40,480 Speaker 3: to restrict things and keep it, you know, and keep 398 00:18:40,520 --> 00:18:41,320 Speaker 3: it all locked down. 399 00:18:41,600 --> 00:18:43,320 Speaker 2: But on the other hand, when I look at the. 400 00:18:43,359 --> 00:18:46,280 Speaker 3: Entities that are interested in making this possible, really, this 401 00:18:46,359 --> 00:18:49,080 Speaker 3: has nothing to do with or let's put individual investors 402 00:18:49,080 --> 00:18:51,600 Speaker 3: in a better stronger position. This has everything to do 403 00:18:51,640 --> 00:18:55,240 Speaker 3: with these individual investors have twelve trillion dollars tied up 404 00:18:55,240 --> 00:18:57,479 Speaker 3: in four oh one k's, and we who own crypto 405 00:18:57,560 --> 00:19:00,280 Speaker 3: and private and private type companies would really like to 406 00:19:00,280 --> 00:19:02,120 Speaker 3: get be able to tap into that. And we being 407 00:19:02,200 --> 00:19:04,639 Speaker 3: the you know, the companies and organizations that want to 408 00:19:04,640 --> 00:19:08,159 Speaker 3: make this happen. So the rules are looser. Now, be careful, folks, 409 00:19:08,400 --> 00:19:10,720 Speaker 3: Just understand what you're getting into. These are not buy 410 00:19:10,720 --> 00:19:13,680 Speaker 3: and hold type investments. Crypto is gonna bounce a lot, 411 00:19:13,920 --> 00:19:15,159 Speaker 3: and this is your four oh and k it's your 412 00:19:15,200 --> 00:19:17,520 Speaker 3: nest egg. Private assets are gonna tie They're not necessarily bad, 413 00:19:17,520 --> 00:19:19,320 Speaker 3: but they're gonna tie you. They don't have liquidity, You're 414 00:19:19,359 --> 00:19:22,480 Speaker 3: gonna run into a quarterly lockups and just harder to 415 00:19:22,480 --> 00:19:23,119 Speaker 3: get in and out of. 416 00:19:23,160 --> 00:19:25,800 Speaker 2: So just know what you're getting into coming up next. 417 00:19:25,800 --> 00:19:30,399 Speaker 1: Why reinforcing what you already believe could wreck your financial future. 418 00:19:30,440 --> 00:19:33,040 Speaker 1: You're listening to Simply Money presented by all Worth Financial 419 00:19:33,080 --> 00:19:42,560 Speaker 1: on fifty five KRC, the talk station. You're listening to 420 00:19:42,560 --> 00:19:45,520 Speaker 1: Simply Money presented by all Worth Financial. I'm Bob Sponseller 421 00:19:45,560 --> 00:19:49,080 Speaker 1: along with Brian James. One of the most dangerous things 422 00:19:49,080 --> 00:19:54,440 Speaker 1: in investing isn't inflation, taxes, or even market downturns. It's 423 00:19:54,480 --> 00:19:58,639 Speaker 1: your own brain, specifically the way it filters information to 424 00:19:58,760 --> 00:20:02,560 Speaker 1: match what you already believe. It's known in the behavioral 425 00:20:02,680 --> 00:20:06,919 Speaker 1: finance world as confirmation bias, and boy, this is a 426 00:20:06,960 --> 00:20:09,320 Speaker 1: big one that I want to make sure we dive 427 00:20:09,400 --> 00:20:10,800 Speaker 1: deep into and tackle tonight. 428 00:20:10,840 --> 00:20:13,199 Speaker 3: Brian, Bob, tell me if you've run across anybody like 429 00:20:13,280 --> 00:20:16,520 Speaker 3: this lately. They're absolutely convinced that the market is coming down. 430 00:20:16,560 --> 00:20:18,160 Speaker 3: It's at an all time high and it just can't 431 00:20:18,160 --> 00:20:20,680 Speaker 3: go any higher. It's coming down. They got this information 432 00:20:20,760 --> 00:20:24,400 Speaker 3: from from articles online. Every article they read is worse 433 00:20:24,440 --> 00:20:26,000 Speaker 3: than the last one they read, and it's just kind 434 00:20:26,000 --> 00:20:26,960 Speaker 3: of backing up on them. 435 00:20:27,320 --> 00:20:28,120 Speaker 2: What they don't. 436 00:20:27,920 --> 00:20:30,600 Speaker 3: Realize, however, though, is Google and social media is doing 437 00:20:30,640 --> 00:20:32,880 Speaker 3: this on purpose, because all they care about, all those 438 00:20:32,880 --> 00:20:35,679 Speaker 3: companies care about, is making sure your eyes stay glued 439 00:20:35,720 --> 00:20:38,400 Speaker 3: to that screen. So if this guy's interested in bad 440 00:20:38,440 --> 00:20:40,680 Speaker 3: news about the market, then absolutely we're going to serve 441 00:20:40,680 --> 00:20:42,880 Speaker 3: it up on a platterform because that'll keep him here 442 00:20:43,240 --> 00:20:45,800 Speaker 3: looking at these ads. And that's how we all make money, 443 00:20:45,880 --> 00:20:48,119 Speaker 3: we being Google and social media and so forth. That 444 00:20:48,280 --> 00:20:50,679 Speaker 3: is confirmation bias. They know that you are seeking out 445 00:20:50,720 --> 00:20:52,760 Speaker 3: opinions and you'll be happy to read more things that 446 00:20:52,800 --> 00:20:54,480 Speaker 3: you already agree with, or they're going to shove it. 447 00:20:54,480 --> 00:20:57,639 Speaker 2: In your face. Well, and this is one of the benefits. 448 00:20:57,800 --> 00:20:59,280 Speaker 1: You know, you and I have both been doing this 449 00:20:59,320 --> 00:21:02,000 Speaker 1: a long time, so we've got many clients. And I 450 00:21:02,000 --> 00:21:04,480 Speaker 1: don't know about you, Brian, but you know I'm going 451 00:21:04,560 --> 00:21:07,880 Speaker 1: to talk about politics here for a minute, because depending 452 00:21:07,880 --> 00:21:11,280 Speaker 1: on who the occupant is in the White House and 453 00:21:11,320 --> 00:21:14,920 Speaker 1: who's controlling Congress and all that, I can almost predict, 454 00:21:15,480 --> 00:21:17,960 Speaker 1: you know, from each side of the aisle, the four 455 00:21:18,040 --> 00:21:20,600 Speaker 1: or five clients that are going to be constantly in 456 00:21:20,680 --> 00:21:24,680 Speaker 1: my ear telling me how and why the entire global 457 00:21:24,720 --> 00:21:28,000 Speaker 1: economy is going to collapse because so and so is 458 00:21:28,040 --> 00:21:31,520 Speaker 1: in the White House and they're purposely ruining the country. 459 00:21:31,560 --> 00:21:32,960 Speaker 2: Do you have do you have those. 460 00:21:32,840 --> 00:21:35,720 Speaker 1: Little handful of clients that you know come out of 461 00:21:35,720 --> 00:21:39,040 Speaker 1: the woodwork depending on who's occupying the White House at 462 00:21:39,040 --> 00:21:39,879 Speaker 1: any given time. 463 00:21:40,280 --> 00:21:42,240 Speaker 3: Okay, I'm going I'm gonna hit you with the phrase here, Bob, 464 00:21:42,280 --> 00:21:44,000 Speaker 3: I rehearsed this on the way, and know we're gonna 465 00:21:44,000 --> 00:21:47,719 Speaker 3: talk about this political passion has no place in prudent planning. 466 00:21:48,160 --> 00:21:50,159 Speaker 2: Wow, that's a lot of peace. I'm not even going 467 00:21:50,240 --> 00:21:51,919 Speaker 2: to try to repeat that. Thank you, thank you. I 468 00:21:51,960 --> 00:21:52,879 Speaker 2: rehearsed it, like I said. 469 00:21:52,960 --> 00:21:55,400 Speaker 3: Anyway, Uh No, Yeah, clients all the time, we all 470 00:21:55,640 --> 00:21:57,959 Speaker 3: and it's not you. There's nothing wrong with this thought process. 471 00:21:58,000 --> 00:22:00,840 Speaker 3: We're simply looking for that mechanical button or the lever 472 00:22:00,960 --> 00:22:03,159 Speaker 3: that we can say if this, then that, if so 473 00:22:03,240 --> 00:22:04,840 Speaker 3: and so is in office and in control and I 474 00:22:04,840 --> 00:22:07,480 Speaker 3: don't like them, then that means I should do this 475 00:22:07,600 --> 00:22:09,919 Speaker 3: black and white process, meaning liquidate everything or go to 476 00:22:09,920 --> 00:22:12,119 Speaker 3: gold or whatever. We have this all the time, but 477 00:22:12,160 --> 00:22:15,480 Speaker 3: in reality, the history shows that the market could absolutely 478 00:22:15,520 --> 00:22:18,080 Speaker 3: care less who's in office. It goes up no matter 479 00:22:18,080 --> 00:22:20,199 Speaker 3: who's in office, because that's how the economy works. There 480 00:22:20,200 --> 00:22:22,280 Speaker 3: are always more and more people buying more and more things. 481 00:22:22,280 --> 00:22:23,960 Speaker 3: And again I'm talking about the longer term, not the 482 00:22:24,000 --> 00:22:26,879 Speaker 3: short term swings which we can't control or predict. But 483 00:22:27,480 --> 00:22:32,240 Speaker 3: the economy will function underneath presidents and leadership of any stripe. 484 00:22:32,280 --> 00:22:34,960 Speaker 3: And there is ample history going back through all the 485 00:22:34,960 --> 00:22:37,640 Speaker 3: way back through the Great Depression and including the most 486 00:22:37,640 --> 00:22:40,359 Speaker 3: recent administrations that it just doesn't matter who's in charge. 487 00:22:40,400 --> 00:22:43,600 Speaker 3: That causes short term swings, and heaven knows, we've seen 488 00:22:43,680 --> 00:22:46,560 Speaker 3: enough of those, But in the longer term, generally speaking, 489 00:22:46,600 --> 00:22:48,920 Speaker 3: things go up. Just don't let the short term wag 490 00:22:49,000 --> 00:22:49,280 Speaker 3: the dog. 491 00:22:49,920 --> 00:22:52,359 Speaker 1: Yeah, I've already made kind of the cardinal rule mistake 492 00:22:52,400 --> 00:22:55,840 Speaker 1: here mentioning politics, so I'm going to use another one 493 00:22:55,880 --> 00:22:58,760 Speaker 1: here at the risk of angering even more and more people. 494 00:22:58,800 --> 00:23:02,760 Speaker 1: And that's talking about the importance of having both spouses 495 00:23:02,800 --> 00:23:05,040 Speaker 1: in a room when we do planning and we talk 496 00:23:05,040 --> 00:23:08,000 Speaker 1: about risk tolerance and all that. Because Brian, I don't 497 00:23:08,000 --> 00:23:11,600 Speaker 1: know about you, I find almost always the people that 498 00:23:11,640 --> 00:23:15,400 Speaker 1: are coming to me with this deep embedded confirmation bias, 499 00:23:16,200 --> 00:23:18,760 Speaker 1: almost one hundred percent of the time, it's men. 500 00:23:19,359 --> 00:23:20,119 Speaker 2: It's men. 501 00:23:20,640 --> 00:23:23,280 Speaker 1: Men in their egos are our egos. We want to 502 00:23:23,280 --> 00:23:25,440 Speaker 1: be right, we want to predict the future. We want 503 00:23:25,480 --> 00:23:28,680 Speaker 1: to protect our family, all that stuff, and we come 504 00:23:28,720 --> 00:23:32,080 Speaker 1: in thinking we already know how it's all going to work, 505 00:23:32,119 --> 00:23:34,919 Speaker 1: depending on who's in the White House or what have you, 506 00:23:35,560 --> 00:23:39,399 Speaker 1: And we start consuming media sources to just confirm that 507 00:23:39,520 --> 00:23:43,639 Speaker 1: bias where I find that the women are way more 508 00:23:44,000 --> 00:23:49,320 Speaker 1: level headed, even keeled, and that can oftentimes balance out 509 00:23:49,480 --> 00:23:53,400 Speaker 1: a good financial planning review. By making sure both spouses 510 00:23:53,400 --> 00:23:56,520 Speaker 1: are in the room, we're hearing from both spouses and 511 00:23:56,600 --> 00:24:01,000 Speaker 1: we're kicking around this confirmation bias, you know, identifying the 512 00:24:01,040 --> 00:24:04,240 Speaker 1: elephant in the room and hopefully hunting it down and 513 00:24:04,320 --> 00:24:07,560 Speaker 1: killing it so we can move on with more productive conversations. 514 00:24:07,600 --> 00:24:09,679 Speaker 3: If this then that, if this happens, then I know 515 00:24:09,720 --> 00:24:11,639 Speaker 3: I'm going to do that that way, I'm forcing it 516 00:24:11,680 --> 00:24:14,720 Speaker 3: to be predictable, and I'm forcing myself to pretend, and 517 00:24:14,760 --> 00:24:17,159 Speaker 3: I'm going to put that in caps, pretend that I 518 00:24:17,200 --> 00:24:20,360 Speaker 3: have control over this, because that's how as a. 519 00:24:20,320 --> 00:24:21,679 Speaker 2: Man like you said, as a man, I want to 520 00:24:21,880 --> 00:24:22,560 Speaker 2: I want to fix things. 521 00:24:22,600 --> 00:24:24,159 Speaker 3: I want to tackle it, take it on, take the 522 00:24:24,160 --> 00:24:25,719 Speaker 3: bull by the horns, and fix the problem. 523 00:24:25,880 --> 00:24:26,880 Speaker 2: But no, it doesn't work that way. 524 00:24:26,880 --> 00:24:28,679 Speaker 3: As a matter of fact, that assumption can get us 525 00:24:28,680 --> 00:24:31,480 Speaker 3: into a lot of trouble that confirmation bias comes back 526 00:24:31,520 --> 00:24:33,680 Speaker 3: to haunt us in terms of forcing us to think 527 00:24:33,800 --> 00:24:35,320 Speaker 3: that we have way more control than we do. 528 00:24:35,560 --> 00:24:38,160 Speaker 1: You're listening to simply Money presented by all Worth Financial. 529 00:24:38,160 --> 00:24:41,800 Speaker 1: I'm Bob Sponzeller along with Brian James and Brian. It seems, 530 00:24:41,800 --> 00:24:44,479 Speaker 1: at least to me, the more money people have, the 531 00:24:44,560 --> 00:24:48,240 Speaker 1: more costly a mistake can be if we allow this 532 00:24:48,359 --> 00:24:52,760 Speaker 1: confirmation bias to really take hold on major decisions. 533 00:24:53,640 --> 00:24:54,960 Speaker 2: Do you find the same thing? Yeah? 534 00:24:55,000 --> 00:24:57,399 Speaker 3: Absolutely, And the thing to remember too, A lot of people, 535 00:24:57,400 --> 00:25:00,560 Speaker 3: when they've built a good, solid nest egg market decline 536 00:25:00,600 --> 00:25:02,840 Speaker 3: of one percent can look like a massive amount of money. 537 00:25:02,840 --> 00:25:05,600 Speaker 3: If I have ten thousand dollars and I lose one percent, well, 538 00:25:05,600 --> 00:25:08,280 Speaker 3: I just lost one hundred dollars. That's not obviously a 539 00:25:08,359 --> 00:25:10,919 Speaker 3: huge amount of money. But if I have five million 540 00:25:10,920 --> 00:25:14,159 Speaker 3: in the market takes one percent away, that's fifty thousand dollars. 541 00:25:14,359 --> 00:25:16,560 Speaker 3: But it's the same one percent, and it's affected by 542 00:25:16,600 --> 00:25:19,240 Speaker 3: the same streams of the market no matter how big 543 00:25:19,600 --> 00:25:21,959 Speaker 3: the investment is. So the idea there is pay attention 544 00:25:22,040 --> 00:25:24,040 Speaker 3: to the percentage, not the dollar amount. I just had 545 00:25:24,280 --> 00:25:26,000 Speaker 3: the conversation and not the other day with a client 546 00:25:26,040 --> 00:25:28,600 Speaker 3: who has really worked up over a one percent loss. 547 00:25:29,760 --> 00:25:33,359 Speaker 1: Yeah, I mean people don't like looking for dissenting views 548 00:25:33,440 --> 00:25:35,760 Speaker 1: or anything that goes against that bias. And I think 549 00:25:35,800 --> 00:25:37,800 Speaker 1: to talk about you know, we've talked about what not 550 00:25:37,920 --> 00:25:40,000 Speaker 1: to do. Let's spend a little time talking about what 551 00:25:40,080 --> 00:25:41,959 Speaker 1: to do. And I think you got to get different 552 00:25:42,000 --> 00:25:45,679 Speaker 1: ideas from different people, people that are intelligent, people that 553 00:25:45,720 --> 00:25:48,480 Speaker 1: are well read, people that could check their emotions at 554 00:25:48,480 --> 00:25:51,959 Speaker 1: the door, and that helps, you know, kind of filter 555 00:25:52,080 --> 00:25:54,360 Speaker 1: out some of that strong bias. And this is where 556 00:25:54,359 --> 00:25:57,480 Speaker 1: I want to give kudos to our chief investment officer 557 00:25:57,520 --> 00:25:59,320 Speaker 1: here at all Worth and Andy Stout, because he is 558 00:25:59,520 --> 00:26:02,800 Speaker 1: wonderful at this and every so often, I don't know, Brian, 559 00:26:02,840 --> 00:26:05,280 Speaker 1: every three or four months, if a headline comes across 560 00:26:05,400 --> 00:26:07,720 Speaker 1: or something happens where I'm starting to get a little 561 00:26:07,720 --> 00:26:11,200 Speaker 1: worked up. It's always I enjoy having a little dose 562 00:26:11,240 --> 00:26:14,280 Speaker 1: of reality fed to me by Andy because he'll pull 563 00:26:14,320 --> 00:26:17,480 Speaker 1: out the inflation scorecard, He'll pull out all the data 564 00:26:18,080 --> 00:26:21,400 Speaker 1: that's actually is making the markets move in one way 565 00:26:21,480 --> 00:26:24,240 Speaker 1: or the one way or another. And when you actually 566 00:26:24,280 --> 00:26:28,000 Speaker 1: look at the reasons behind why markets move and how 567 00:26:28,000 --> 00:26:32,119 Speaker 1: they move and when they move. It has literally nothing 568 00:26:32,160 --> 00:26:34,399 Speaker 1: to do usually with what we see in the headlines 569 00:26:34,520 --> 00:26:37,560 Speaker 1: or these articles that we want to consume just to 570 00:26:37,640 --> 00:26:39,879 Speaker 1: confirm our own embedded biases. 571 00:26:40,320 --> 00:26:41,199 Speaker 2: Yeah, I would agree with that. 572 00:26:41,240 --> 00:26:43,040 Speaker 3: It's a great tool that we have to be able 573 00:26:43,040 --> 00:26:45,120 Speaker 3: to rely on our own teams internally. 574 00:26:45,119 --> 00:26:49,199 Speaker 1: Of course, again, it's important to get a second opinion, 575 00:26:49,240 --> 00:26:53,240 Speaker 1: and this is where a fiduciary advisor can provide enormous value. 576 00:26:53,359 --> 00:26:56,159 Speaker 1: And we are not here, or a good advisor is 577 00:26:56,200 --> 00:27:00,359 Speaker 1: not here to agree with everything that you're thinking, with 578 00:27:00,440 --> 00:27:03,080 Speaker 1: your fears or hype or articles that you've read. We 579 00:27:03,200 --> 00:27:06,960 Speaker 1: are here to challenge those assumptions and protect you from 580 00:27:07,000 --> 00:27:10,040 Speaker 1: blind spots that you might have. Here's the all Worth 581 00:27:10,040 --> 00:27:14,159 Speaker 1: Advice confirmation. Bias isn't just a mental quirk. It's a 582 00:27:14,200 --> 00:27:17,440 Speaker 1: financial risk and the more wealth you have, the more 583 00:27:17,560 --> 00:27:21,199 Speaker 1: damage it can do if you don't identify and address it. 584 00:27:22,080 --> 00:27:25,120 Speaker 1: All Right, your neighbor just bought Navidia. Should you jump in? 585 00:27:25,520 --> 00:27:27,960 Speaker 1: We'll talk about a powerful factor that could pull you 586 00:27:28,080 --> 00:27:31,879 Speaker 1: away from your financial plan. Next, you're listening to Simply Money, 587 00:27:31,880 --> 00:27:35,080 Speaker 1: presented by all Worth Financial on fifty five KRC the 588 00:27:35,520 --> 00:27:43,000 Speaker 1: talk station. You're listening to Simply Money presented by all 589 00:27:43,000 --> 00:27:46,480 Speaker 1: Worth Financial. I'm Bob Spondseller along with Brian James. Do 590 00:27:46,520 --> 00:27:48,919 Speaker 1: you have a financial question you'd like for us to answer. 591 00:27:49,240 --> 00:27:51,720 Speaker 1: There's a red button you can click while you're listening 592 00:27:51,760 --> 00:27:54,880 Speaker 1: to the show right there on the iHeart app. Simply 593 00:27:54,920 --> 00:27:59,119 Speaker 1: record your question and it'll come straight to us. All right, Brian, 594 00:27:59,240 --> 00:28:03,240 Speaker 1: Let's be honest, none of us like to feel left out, especially. 595 00:28:02,720 --> 00:28:03,840 Speaker 2: When it comes to money. 596 00:28:04,359 --> 00:28:07,919 Speaker 1: And when your coworker brags about their bitcoin gains or 597 00:28:07,920 --> 00:28:11,680 Speaker 1: your neighbor says they doubled their portfolio in six months, 598 00:28:12,320 --> 00:28:15,720 Speaker 1: it triggers an emotion in us that we want to identify. 599 00:28:15,840 --> 00:28:18,800 Speaker 2: That fear of missing out or fomo. 600 00:28:18,680 --> 00:28:22,800 Speaker 3: Fomo fomo fomo fomo can cause a lot of problems 601 00:28:23,240 --> 00:28:27,320 Speaker 3: in terms of making terrible financial and otherwise decisions. So 602 00:28:27,560 --> 00:28:30,960 Speaker 3: the world of investing that you'll feel some pressure just 603 00:28:31,000 --> 00:28:33,800 Speaker 3: from you know, the people you're golfing with, or people 604 00:28:33,840 --> 00:28:37,120 Speaker 3: at a cocktail party. Everybody's talking about, you know, something 605 00:28:37,119 --> 00:28:39,720 Speaker 3: that you weren't aware of or you didn't do, and 606 00:28:39,760 --> 00:28:41,240 Speaker 3: it may or may not be a good idea. But 607 00:28:41,240 --> 00:28:43,480 Speaker 3: but what your brain kicks into is have I missed 608 00:28:43,480 --> 00:28:45,600 Speaker 3: out on an opportunity? Is there something out there that 609 00:28:45,600 --> 00:28:47,920 Speaker 3: I should do, that I should be doing right now, 610 00:28:47,920 --> 00:28:49,840 Speaker 3: and how can I fix that problem? Well, so, maybe 611 00:28:49,840 --> 00:28:51,960 Speaker 3: there's people out there that you know, you know, you know, 612 00:28:52,040 --> 00:28:54,600 Speaker 3: somebody's got a solid retirement plan. They got everything they need, 613 00:28:54,640 --> 00:28:56,560 Speaker 3: a couple million in assets, but they read this one 614 00:28:56,640 --> 00:28:58,880 Speaker 3: article about AI and all of a sudden, they've pivoted 615 00:28:58,880 --> 00:29:01,000 Speaker 3: their you know, a good chunk of their portfolio toward 616 00:29:01,160 --> 00:29:03,440 Speaker 3: towards the big names and AI good idea, bad idea? 617 00:29:04,040 --> 00:29:05,800 Speaker 2: I say not so much because. 618 00:29:05,480 --> 00:29:07,800 Speaker 3: That they did that with their heart, with their emotions, 619 00:29:07,800 --> 00:29:10,360 Speaker 3: not with their logical brain of does this help my plan? 620 00:29:10,440 --> 00:29:12,080 Speaker 3: Do I need this kind of growth? Or am I 621 00:29:12,120 --> 00:29:14,520 Speaker 3: just in the casino playing with playing with poker chips? 622 00:29:15,080 --> 00:29:17,040 Speaker 1: All right, well, let's get down to brass tacks here. 623 00:29:17,080 --> 00:29:18,960 Speaker 1: I mean, how many of your clients come to you 624 00:29:19,000 --> 00:29:21,320 Speaker 1: with this kind of stuff? Hey, I love the plan, Brian, 625 00:29:21,400 --> 00:29:22,160 Speaker 1: everything's fine. 626 00:29:22,200 --> 00:29:23,360 Speaker 2: But let's I. 627 00:29:23,360 --> 00:29:26,000 Speaker 1: Think people get bored. Sometimes they get bored with their 628 00:29:26,040 --> 00:29:29,400 Speaker 1: plan because it works so well, so they just create 629 00:29:29,520 --> 00:29:33,120 Speaker 1: this fomo emotion again, back to needing to do something 630 00:29:33,240 --> 00:29:36,800 Speaker 1: or wanting to do something, or introducing some juice to 631 00:29:36,920 --> 00:29:39,640 Speaker 1: the whole situation. Do you have clients that come to 632 00:29:39,680 --> 00:29:40,840 Speaker 1: you with that, and how do you. 633 00:29:40,760 --> 00:29:41,160 Speaker 2: Deal with it. 634 00:29:41,240 --> 00:29:43,040 Speaker 3: Yeah, I'm going to go the other way on you, Bob. 635 00:29:43,080 --> 00:29:44,800 Speaker 3: I'm going to go with myself on that one. We 636 00:29:44,840 --> 00:29:46,880 Speaker 3: feel this too as advisors, we run into it too. 637 00:29:46,880 --> 00:29:49,520 Speaker 3: So I was actually with my family was considering an investment, 638 00:29:49,800 --> 00:29:51,800 Speaker 3: and I talked to another advisor here at Allworth who 639 00:29:51,840 --> 00:29:54,960 Speaker 3: had some experience with it, and his answer was, why 640 00:29:54,960 --> 00:29:56,520 Speaker 3: do you want a more complicated life? 641 00:29:56,560 --> 00:29:58,400 Speaker 2: And that put me on my heels. 642 00:29:58,320 --> 00:30:00,600 Speaker 3: Because this was a private equity type thing with some 643 00:30:00,640 --> 00:30:02,320 Speaker 3: moving parts two and all that, and I hadn't even 644 00:30:02,320 --> 00:30:04,320 Speaker 3: thought about that. I was just interested in the you know, 645 00:30:04,320 --> 00:30:06,000 Speaker 3: it's just a portion of my portfolio and so on 646 00:30:06,040 --> 00:30:08,360 Speaker 3: and so forth. But there's moving parts to any decision 647 00:30:08,440 --> 00:30:11,520 Speaker 3: like that that you make. So it is always valuable 648 00:30:11,520 --> 00:30:13,320 Speaker 3: to tea just take a breath and figure out what 649 00:30:13,360 --> 00:30:15,960 Speaker 3: the big picture is if I'm gonna throw And let 650 00:30:15,960 --> 00:30:18,080 Speaker 3: me be clear, I have absolutely no problem with people 651 00:30:18,080 --> 00:30:19,280 Speaker 3: wanting to play with the stock market. 652 00:30:19,320 --> 00:30:20,400 Speaker 2: Go ahead, knock yourself out. 653 00:30:20,680 --> 00:30:22,360 Speaker 3: Just don't do it with the notion that I'm gonna 654 00:30:22,400 --> 00:30:24,360 Speaker 3: double my money next week and all my problems will 655 00:30:24,400 --> 00:30:26,280 Speaker 3: be solved. Do it with the idea that this is 656 00:30:26,320 --> 00:30:28,320 Speaker 3: an interesting thing and I like the story behind this 657 00:30:28,400 --> 00:30:30,920 Speaker 3: investment and I want to participate in it, and that's fine. 658 00:30:30,960 --> 00:30:33,160 Speaker 3: Just don't hang your entire financial future. 659 00:30:32,800 --> 00:30:35,560 Speaker 1: On yeah, And I'll tell you how I handle this, 660 00:30:35,640 --> 00:30:37,719 Speaker 1: because if somebody comes at me and at me and 661 00:30:37,760 --> 00:30:41,320 Speaker 1: at me long enough, I just tell them, hey, fine, 662 00:30:41,880 --> 00:30:45,040 Speaker 1: let's split the Let's split your portfolio into two pieces. 663 00:30:45,080 --> 00:30:47,240 Speaker 1: And I've done it this way for over thirty years. 664 00:30:47,280 --> 00:30:49,680 Speaker 1: We got your serious money. This is the money you 665 00:30:49,720 --> 00:30:52,600 Speaker 1: can't afford to lose and it's got to take care 666 00:30:52,640 --> 00:30:54,240 Speaker 1: of you for the rest of your life. And then 667 00:30:54,280 --> 00:30:58,240 Speaker 1: there's play money. And as long as they're willing to 668 00:30:58,280 --> 00:31:00,800 Speaker 1: talk about I'm like, hey, have that it. Let's slice 669 00:31:00,840 --> 00:31:03,280 Speaker 1: off a piece of play money. I'm not going to 670 00:31:03,360 --> 00:31:05,760 Speaker 1: manage the play money for you. You go do it 671 00:31:06,520 --> 00:31:08,920 Speaker 1: serious goes. Show me how good you are. Look at 672 00:31:08,920 --> 00:31:12,800 Speaker 1: all your charts, day traded, you know, buy AI stocks 673 00:31:12,840 --> 00:31:17,000 Speaker 1: to your heart, heart's desire, gold, whatever you want to do, go, 674 00:31:17,040 --> 00:31:18,400 Speaker 1: get in and out of all of it. 675 00:31:18,760 --> 00:31:20,480 Speaker 2: Get back to me in six months and let me 676 00:31:20,520 --> 00:31:21,240 Speaker 2: know how you're doing. 677 00:31:21,280 --> 00:31:25,400 Speaker 1: Because it can oftentimes if people actually have to go 678 00:31:25,440 --> 00:31:28,120 Speaker 1: out and do this and have the time and the 679 00:31:28,200 --> 00:31:31,560 Speaker 1: inclination and study all the details and execute on what 680 00:31:31,600 --> 00:31:34,680 Speaker 1: they think can be very easy to do. I like 681 00:31:34,720 --> 00:31:37,240 Speaker 1: to give them six months to a year to actually 682 00:31:37,280 --> 00:31:39,480 Speaker 1: go out and do it and then come back to 683 00:31:39,520 --> 00:31:40,720 Speaker 1: me and let me know how it's going. 684 00:31:40,840 --> 00:31:43,840 Speaker 3: Yeah, the serious money permits the existence of the play money, 685 00:31:43,840 --> 00:31:45,719 Speaker 3: and so you have to think about it in terms of, 686 00:31:45,880 --> 00:31:47,440 Speaker 3: you know, if I want to throw a very small 687 00:31:47,440 --> 00:31:50,480 Speaker 3: amount of you know of into something take a flyer. 688 00:31:50,320 --> 00:31:52,240 Speaker 2: As usually the word word that people use. 689 00:31:52,400 --> 00:31:55,000 Speaker 3: That's perfectly fine, but it shouldn't be treated as something 690 00:31:55,000 --> 00:31:57,080 Speaker 3: that's going to change your life. If you're willing to 691 00:31:57,120 --> 00:31:59,520 Speaker 3: bet half or more of your portfolio on some crazy 692 00:31:59,560 --> 00:32:01,040 Speaker 3: bet than and I'm going to go ahead and say that, 693 00:32:01,040 --> 00:32:03,200 Speaker 3: you're going to create financial problems for yourself down the road. 694 00:32:03,360 --> 00:32:05,120 Speaker 3: On the other hand, if you're willing to invest a 695 00:32:05,160 --> 00:32:07,880 Speaker 3: small amount, then even if it doubles triples, it's not 696 00:32:07,920 --> 00:32:10,320 Speaker 3: going to change your life anyway. So just remind yourself 697 00:32:10,320 --> 00:32:12,120 Speaker 3: of how important this really will be to you. 698 00:32:12,120 --> 00:32:14,680 Speaker 1: You're listening to Simply Money, presented by all Worth Financial 699 00:32:14,680 --> 00:32:18,120 Speaker 1: on Bob's Sponsller along with Brian James. Brian, let's get 700 00:32:18,120 --> 00:32:22,160 Speaker 1: into how that FOMO or fear of missing out, emotion 701 00:32:22,880 --> 00:32:25,760 Speaker 1: starts to rear its ugly head. What causes people to 702 00:32:25,800 --> 00:32:26,239 Speaker 1: feel that? 703 00:32:26,360 --> 00:32:28,880 Speaker 2: Yeah, well, what causes it is exactly that. It's the fear. 704 00:32:28,880 --> 00:32:30,960 Speaker 3: It's a you know, somebody's doing something, somebody has found 705 00:32:30,960 --> 00:32:33,560 Speaker 3: an opportunity that I'm aware of, but I'm not executing on. 706 00:32:33,720 --> 00:32:35,680 Speaker 3: Am I missing out? That's where it comes from. But 707 00:32:35,760 --> 00:32:38,040 Speaker 3: the very first thing that happens is it causes you 708 00:32:38,080 --> 00:32:40,600 Speaker 3: to abandon your overall plan. If you had a solid 709 00:32:40,640 --> 00:32:43,360 Speaker 3: financial plan, which you mentioned it earlier, Bob, a solid 710 00:32:43,360 --> 00:32:44,560 Speaker 3: financial plan can be boring. 711 00:32:44,640 --> 00:32:46,080 Speaker 2: Let's call it. Call it what it is. 712 00:32:46,200 --> 00:32:49,480 Speaker 3: Right, I've built my machine. It's in good, solid, running shape. 713 00:32:49,760 --> 00:32:51,520 Speaker 3: Now what you know, think of a If you're a 714 00:32:51,520 --> 00:32:53,920 Speaker 3: person who's into repairing cars, the most boring thing is 715 00:32:53,920 --> 00:32:55,600 Speaker 3: a couple of cars in the garage who that are 716 00:32:55,640 --> 00:32:57,520 Speaker 3: running just fine. I want a project. I want to 717 00:32:57,520 --> 00:32:58,960 Speaker 3: buy something and beat it up and fix it and 718 00:32:59,000 --> 00:33:01,760 Speaker 3: so forth. But that again, that's okay with a tiny 719 00:33:01,800 --> 00:33:04,560 Speaker 3: amount of the portfolio. But you're going to be you're 720 00:33:04,600 --> 00:33:07,080 Speaker 3: forcing yourself to do things that you don't have control over. 721 00:33:07,880 --> 00:33:10,800 Speaker 1: Yeah, that's the key point here, the key point. I 722 00:33:10,840 --> 00:33:13,840 Speaker 1: want to drive home is make sure we separate play 723 00:33:13,920 --> 00:33:17,600 Speaker 1: money from serious money and make sure that we do 724 00:33:17,720 --> 00:33:21,640 Speaker 1: not do anything that's going to violate the viability of 725 00:33:21,680 --> 00:33:25,520 Speaker 1: that serious money, meaning your long term financial plan. And 726 00:33:25,840 --> 00:33:28,320 Speaker 1: as long as people are willing to do that, things 727 00:33:28,360 --> 00:33:30,680 Speaker 1: tend to work out fine. And if they want to 728 00:33:30,720 --> 00:33:33,480 Speaker 1: carve off that piece and get speculative, we just carve 729 00:33:33,520 --> 00:33:35,719 Speaker 1: that out of the financial plan so you can we 730 00:33:35,760 --> 00:33:39,600 Speaker 1: can always demonstrate for our clients the viability of that 731 00:33:39,640 --> 00:33:43,280 Speaker 1: financial plan factoring just the serious money piece. 732 00:33:43,560 --> 00:33:44,760 Speaker 2: So take three steps here. 733 00:33:44,800 --> 00:33:47,040 Speaker 3: First, ask yourself, does this fit the plan that I've 734 00:33:47,080 --> 00:33:49,400 Speaker 3: already put in place or am I just reacting to 735 00:33:49,440 --> 00:33:51,720 Speaker 3: that fear of missing out. Second one, look at those 736 00:33:51,720 --> 00:33:54,240 Speaker 3: goals again. Maybe if you've built a solid financial plan, 737 00:33:54,400 --> 00:33:56,280 Speaker 3: make sure the goals still match what you want because 738 00:33:56,320 --> 00:33:58,560 Speaker 3: things change over time. What are you really trying to achieve? 739 00:33:58,800 --> 00:34:02,719 Speaker 3: And number three, talk to your or a trusted accomplice 740 00:34:02,800 --> 00:34:05,880 Speaker 3: or somebody else that knows the situation and just get 741 00:34:05,920 --> 00:34:07,560 Speaker 3: an opinion from an arms length away. 742 00:34:08,080 --> 00:34:09,280 Speaker 2: Here's the all worth advice. 743 00:34:09,600 --> 00:34:14,480 Speaker 1: Chasing heat can often result in getting burned. A good 744 00:34:14,600 --> 00:34:19,360 Speaker 1: financial plan keeps you cool. Next, the most valuable part 745 00:34:19,440 --> 00:34:22,400 Speaker 1: of financial advice you're listening to Simply Money presented by 746 00:34:22,400 --> 00:34:26,000 Speaker 1: all Worth Financial on fifty five KRC the talk station. 747 00:34:31,440 --> 00:34:34,080 Speaker 1: You're listening to Simply Money presented by all Worth Financial. 748 00:34:34,120 --> 00:34:36,360 Speaker 1: I'm Bob Sponseller along with Brian James. 749 00:34:37,080 --> 00:34:37,880 Speaker 2: Here's the truth. 750 00:34:37,960 --> 00:34:41,880 Speaker 1: When people think about financial advice, they think about investment picks, 751 00:34:42,080 --> 00:34:47,040 Speaker 1: stat tax strategies, state planning, and all those things are important, 752 00:34:47,480 --> 00:34:50,960 Speaker 1: but maybe the most valuable thing your advisor should be 753 00:34:51,040 --> 00:34:53,400 Speaker 1: doing behavioral coaching. 754 00:34:53,480 --> 00:34:54,719 Speaker 2: Brian. Why do we know this? 755 00:34:54,800 --> 00:34:58,279 Speaker 3: Well, morning Star, which is a big investment research firm 756 00:34:58,320 --> 00:35:00,960 Speaker 3: out there, has done some research and they've shown through 757 00:35:01,000 --> 00:35:03,600 Speaker 3: those studies that good behavior, which means sticking with that 758 00:35:03,719 --> 00:35:06,440 Speaker 3: plan and avoiding the urge to try to time the market, 759 00:35:06,800 --> 00:35:08,520 Speaker 3: that can add one and a half percent to two 760 00:35:08,560 --> 00:35:11,320 Speaker 3: percent in returns annually. And that is that is not magic, 761 00:35:11,360 --> 00:35:14,320 Speaker 3: that's guidance. That's somebody standing in arm's length away looking 762 00:35:14,320 --> 00:35:17,240 Speaker 3: at your situation. And again, this can be a professional advisor, 763 00:35:17,280 --> 00:35:19,239 Speaker 3: it can just be somebody who bounce ideas off of 764 00:35:19,320 --> 00:35:21,200 Speaker 3: and so forth, but just somebody to kind of act 765 00:35:21,239 --> 00:35:24,320 Speaker 3: as checks and balances to your own decision making skills. 766 00:35:24,440 --> 00:35:27,040 Speaker 3: That literally results in real dollars because somebody can pull 767 00:35:27,040 --> 00:35:28,400 Speaker 3: in the reins on you if you're about to make 768 00:35:28,520 --> 00:35:29,720 Speaker 3: about to make a bad decision. 769 00:35:30,160 --> 00:35:30,359 Speaker 2: Yeah. 770 00:35:30,400 --> 00:35:32,719 Speaker 1: I bring this up all the time, especially when people 771 00:35:32,800 --> 00:35:35,600 Speaker 1: are kind of fee avoiding, kind of wanting to talk 772 00:35:35,640 --> 00:35:38,719 Speaker 1: about the advisory fees and why do we charge this 773 00:35:38,880 --> 00:35:41,080 Speaker 1: and what do they get out of it? I think 774 00:35:41,160 --> 00:35:44,160 Speaker 1: the default provision most people are A lot of people 775 00:35:44,239 --> 00:35:46,680 Speaker 1: could come to us with as well. If I'm going 776 00:35:46,760 --> 00:35:49,160 Speaker 1: to pay an advisory fee of one one and a 777 00:35:49,200 --> 00:35:53,640 Speaker 1: half percent, what have you? My investment returns better be better, 778 00:35:53,719 --> 00:35:56,600 Speaker 1: you know, in excess of that every single. 779 00:35:56,400 --> 00:35:58,440 Speaker 2: Year, or you aren't doing anything. 780 00:35:59,000 --> 00:36:03,760 Speaker 1: And all these studies have shown people completely forget about 781 00:36:03,840 --> 00:36:08,120 Speaker 1: the behavioral impact of being left to your own devices 782 00:36:08,160 --> 00:36:11,200 Speaker 1: and making these decisions on your own, to say nothing 783 00:36:11,360 --> 00:36:13,919 Speaker 1: of the tax alpha and the other benefits that come 784 00:36:13,960 --> 00:36:19,400 Speaker 1: with good financial planning. It's this behavioral coaching and taking 785 00:36:19,440 --> 00:36:23,440 Speaker 1: people by the hand and helping them not make mistakes 786 00:36:23,480 --> 00:36:26,840 Speaker 1: from which they can't recover that really have the value 787 00:36:26,880 --> 00:36:27,560 Speaker 1: here at the end. 788 00:36:27,520 --> 00:36:27,919 Speaker 2: Of the day. 789 00:36:28,000 --> 00:36:29,960 Speaker 3: Yeah, and again there's nothing wrong with being a do 790 00:36:30,000 --> 00:36:32,000 Speaker 3: it yourself as well, but you're going to run into 791 00:36:32,000 --> 00:36:35,880 Speaker 3: these same things, same situations, even if you're making your 792 00:36:35,920 --> 00:36:37,840 Speaker 3: decisions on your own, which again is a perfectly acceptable 793 00:36:37,840 --> 00:36:39,719 Speaker 3: way to go. I like to think of it in 794 00:36:39,800 --> 00:36:44,479 Speaker 3: terms of reminding people that, hey, when the market goes down, 795 00:36:44,520 --> 00:36:46,320 Speaker 3: that is not a failure. It's a failure if you 796 00:36:46,440 --> 00:36:48,280 Speaker 3: lost a lot more than the market, because you probably 797 00:36:48,280 --> 00:36:52,320 Speaker 3: weren't invested in a very diversified manner to begin with. However, 798 00:36:52,480 --> 00:36:54,480 Speaker 3: just viewing the normal ups and downs of a market 799 00:36:54,520 --> 00:36:56,720 Speaker 3: as up as good, down as bad as a failure. 800 00:36:57,040 --> 00:36:59,240 Speaker 3: I would compare that to you know what, if it's raining. 801 00:36:59,360 --> 00:37:01,959 Speaker 3: You know, if it's rain outside today, maybe we should 802 00:37:02,000 --> 00:37:03,879 Speaker 3: just break up these windows. Think of the money we'll 803 00:37:03,880 --> 00:37:06,200 Speaker 3: save on heating if we just don't have any windows 804 00:37:06,239 --> 00:37:08,640 Speaker 3: anymore because it's raining today. Therefore the sun will never 805 00:37:08,680 --> 00:37:10,960 Speaker 3: come out again. That's not the way to think about it. 806 00:37:11,600 --> 00:37:14,920 Speaker 3: A brief period of you know, bumpiness, volatility or losses 807 00:37:15,000 --> 00:37:17,200 Speaker 3: is to be expected and dealt with, not to be 808 00:37:17,200 --> 00:37:18,400 Speaker 3: attempted to be avoided. 809 00:37:18,480 --> 00:37:20,399 Speaker 1: That's the trap that a lot of people fall into. Now, 810 00:37:20,440 --> 00:37:22,400 Speaker 1: what we're trying to do here is paint a picture 811 00:37:22,480 --> 00:37:24,720 Speaker 1: of why you would want to work with a good, 812 00:37:25,120 --> 00:37:27,960 Speaker 1: solid fiduciary advisor. And this isn't meant to be a 813 00:37:28,040 --> 00:37:30,560 Speaker 1: commercial for all Worth. I mean, we do this kind 814 00:37:30,560 --> 00:37:32,560 Speaker 1: of planning, but other people do it as well. 815 00:37:32,600 --> 00:37:33,479 Speaker 2: The key is to. 816 00:37:33,440 --> 00:37:37,640 Speaker 1: Find a good fiduciary advisor who can tell who won't 817 00:37:37,680 --> 00:37:39,799 Speaker 1: just sit there and tell you what you want to hear, 818 00:37:40,239 --> 00:37:43,520 Speaker 1: but oftentimes tell you what you need to hear, because 819 00:37:43,560 --> 00:37:45,279 Speaker 1: at the end of the game, at the end of 820 00:37:45,320 --> 00:37:48,040 Speaker 1: the day, job one here, at least in my mind, 821 00:37:48,480 --> 00:37:50,800 Speaker 1: is to make sure all of our clients have above 822 00:37:50,840 --> 00:37:54,760 Speaker 1: a ninety percent probability of meeting all their long term 823 00:37:54,760 --> 00:37:58,080 Speaker 1: financial goals and not running out of money in spite 824 00:37:58,160 --> 00:38:00,839 Speaker 1: of what may come down and often will come down 825 00:38:00,920 --> 00:38:01,279 Speaker 1: the road. 826 00:38:01,719 --> 00:38:02,840 Speaker 2: Here's the all Worth advice. 827 00:38:02,920 --> 00:38:06,640 Speaker 1: A great advisor won't just manage your money, they'll protect 828 00:38:06,680 --> 00:38:07,719 Speaker 1: you from yourself. 829 00:38:08,239 --> 00:38:09,080 Speaker 2: Thanks for listening. 830 00:38:09,120 --> 00:38:11,480 Speaker 1: You've been listening to Simply Money, presented by all Worth 831 00:38:11,520 --> 00:38:14,880 Speaker 1: Financial on fifty five KRC, the talk station