WEBVTT - No Jacket Required: Inside the World of New School Wealth Management 0:00:06.800 --> 0:00:12.760 Trains. I'm Howeer and I'm Eric belx Junas Eric. I 0:00:12.800 --> 0:00:14.640 live a desk life, but every once in a while 0:00:14.680 --> 0:00:16.600 you get to go on the road, not only from 0:00:16.640 --> 0:00:18.840 Philly to New York, which is like a weekly occurrence 0:00:18.880 --> 0:00:22.079 for you, but also to trade shows. Yeah, occasionally, I 0:00:22.400 --> 0:00:24.279 think I go to like three a year maybe, but 0:00:24.360 --> 0:00:26.680 this is the first of its kind, right, normally go 0:00:26.720 --> 0:00:29.200 to Inside et s maybe one other one of course 0:00:29.200 --> 0:00:31.520 our events, and then this one was new for me, 0:00:31.720 --> 0:00:35.839 and it was done by the rit Holtz Wealth Management, 0:00:35.840 --> 0:00:39.240 which is very on the show Josh Brown. You a 0:00:39.280 --> 0:00:41.640 lot of people on Bloomberg Opinion regular Yeah, a lot 0:00:41.680 --> 0:00:43.839 of people know them from Twitter. They all have a 0:00:43.880 --> 0:00:47.319 ton of followers. They are advisors, but they're not your 0:00:47.320 --> 0:00:50.440 grandfather's advisor. They're kind of very cool about it. Their 0:00:50.600 --> 0:00:54.640 fee base, they use low cost index funds, some active, 0:00:55.280 --> 0:00:58.160 They're on Twitter a lot, and I think they're leading 0:00:58.280 --> 0:01:02.600 what's a sort of move away from the traditional both 0:01:03.120 --> 0:01:06.360 style and strategy of a wealth manager or a broker. 0:01:06.680 --> 0:01:10.080 And so this conference really was to me the future 0:01:10.120 --> 0:01:12.880 of the wealth management industry in a nutshell. A lot 0:01:12.880 --> 0:01:18.839 of independent young advisors who were there really to learn 0:01:19.080 --> 0:01:21.399 how to get better. A lot of it was on technology, 0:01:21.400 --> 0:01:24.200 how advisors use technology, and E t F s frankly 0:01:24.240 --> 0:01:25.880 are a technology so a lot of them were E 0:01:25.920 --> 0:01:27.560 t F users. I talked to a bunch of people there. 0:01:28.040 --> 0:01:31.600 Um it was sold out seven people people first time. Yep, 0:01:31.640 --> 0:01:33.840 they're already planning a second one in California next year. 0:01:33.920 --> 0:01:36.480 Where was this one? This was in Scott's Dale, Arizona. 0:01:36.760 --> 0:01:39.520 And some of the sessions included like tech as a 0:01:39.560 --> 0:01:42.920 catalyst for growth, direct indexing, liquid alto e s G, 0:01:43.480 --> 0:01:46.280 bringing your brand on social Media. I was in a 0:01:46.319 --> 0:01:48.760 panel discussion called Battle the Pundits, similar to that one 0:01:48.800 --> 0:01:52.240 I do in Well. They didn't judge this one, but 0:01:52.400 --> 0:01:55.280 I felt I didn't you know that it was early 0:01:55.320 --> 0:01:58.040 in the morning. Was eight in the morning. So Todd rosenblooth, 0:01:58.080 --> 0:02:00.880 as you know he I think he was straw stirring 0:02:00.920 --> 0:02:03.920 the drink this time. He took a few friendly shots 0:02:04.080 --> 0:02:06.320 at Matt Dave myself and he got us going. But 0:02:06.440 --> 0:02:09.840 mostly I think we're pretty pretty calm up there. You know, 0:02:09.880 --> 0:02:12.280 nobody was really doing anything too crazy. We were just 0:02:12.280 --> 0:02:14.399 trying to give our take on the market and ets. 0:02:16.760 --> 0:02:22.520 This time on Trillians Eric's dispatch from Wealth Stack. Okay, Eric, 0:02:22.600 --> 0:02:25.200 so you went to Wealth Stack with a recorder. Who 0:02:25.280 --> 0:02:29.280 was the first big fish that you got? Josh Brown? Um, Yeah, 0:02:29.360 --> 0:02:31.919 you know, I men him a bunch over the years. 0:02:31.919 --> 0:02:34.960 He's really great, really personable, and uh he's on Twitter. 0:02:35.400 --> 0:02:39.680 He's amazing on Twitter, and he his handle is at 0:02:39.680 --> 0:02:42.880 reform broker um and you can see his fingerprints all 0:02:42.919 --> 0:02:44.760 over this conference. So I thought let's start with him 0:02:44.800 --> 0:02:47.840 because he's really the mastermind, him and his company behind this, 0:02:47.919 --> 0:02:49.680 including inside ETF. So I gotta give hi a lot 0:02:49.680 --> 0:02:52.880 of credit. They are master conference organizers. So here's just 0:02:52.880 --> 0:02:55.960 talking about the Goalie event and wy Arizona. We have, 0:02:56.160 --> 0:02:59.840 I think some of the leading technology companies that serve advisors. 0:03:00.000 --> 0:03:01.480 Hold on, I'm just turning the game down a little there, 0:03:01.639 --> 0:03:03.720 go am I too loud for this? Yeah, I saw 0:03:03.720 --> 0:03:05.120 a little red. I didn't want to blow it out, 0:03:05.120 --> 0:03:08.320 so you can see it just come down an Alright. 0:03:09.040 --> 0:03:12.400 We have most of the practitioners who are forward thinking 0:03:12.400 --> 0:03:14.760 and progressive advisors, and then we have most of the 0:03:14.760 --> 0:03:19.160 financial technology providers that are serving this audience. So it's 0:03:19.320 --> 0:03:23.440 very engaged audience, young advisors, a lot of energy, and 0:03:23.480 --> 0:03:25.880 I think the networking is really what brings the whole 0:03:25.880 --> 0:03:29.800 thing together. So why Scottsdale in September. It's a hundred degrees, Like, 0:03:29.840 --> 0:03:32.760 what's the logic there? We're not very bright eric um, 0:03:32.840 --> 0:03:36.040 So Scottsdale in September. You know what, it's a beautiful hotel, 0:03:36.080 --> 0:03:38.720 it's a great venue. We really don't want people milling 0:03:38.720 --> 0:03:41.840 around outdoors. There was a hike this morning led by 0:03:41.920 --> 0:03:45.680 Dany Egan from Betterment took a whole group of advisors 0:03:45.760 --> 0:03:50.080 up into Camelback Mountain. Two dead and of course we 0:03:50.160 --> 0:03:54.080 pray for their families. Did people really die? No? Okay, good. 0:03:55.160 --> 0:03:56.880 I'm sure some came close to it, but it's it 0:03:57.000 --> 0:03:59.720 was again a hundred degree hike. I saw some photos 0:03:59.760 --> 0:04:01.400 from there. It was kind of cool. A lot of 0:04:01.440 --> 0:04:03.560 people took early morning hikes up to the mountain. The 0:04:03.640 --> 0:04:05.800 idea of having it more, yeah, the idea of having 0:04:05.840 --> 0:04:08.440 an events somewhere where most people did not want to 0:04:08.440 --> 0:04:11.000 be outside, I think was sort of the rationale they 0:04:11.000 --> 0:04:13.120 were giving. And by the way, you know that, um, 0:04:13.160 --> 0:04:14.960 that one was a little loud. There's a gain on 0:04:15.000 --> 0:04:17.960 the mic, and so excuse the little hiccups, and I 0:04:17.960 --> 0:04:19.880 I kind of like get better as we go. You'll 0:04:19.880 --> 0:04:22.279 see the This is why we typically have our colleagues 0:04:22.320 --> 0:04:27.160 do the field reports. That's right, Um, okay, So next 0:04:27.200 --> 0:04:29.480 one is just I thought it was cool because it 0:04:29.520 --> 0:04:31.320 was very casual. I did not bring slacks. I wore 0:04:31.400 --> 0:04:33.880 jeans the whole time, and that was completely the right move. 0:04:34.600 --> 0:04:37.080 Nobody there had a tie on, and may many people 0:04:37.120 --> 0:04:39.360 were even more dressed down. I mean I thought so. 0:04:39.440 --> 0:04:41.599 Some some people were in T shirts. I dig it. 0:04:41.680 --> 0:04:43.880 I personally think this is where things are going. I 0:04:44.000 --> 0:04:46.880 enjoyed it. Here's josh On on the casual attire. I 0:04:46.920 --> 0:04:50.800 think there's the sense that a previous generation of advisors 0:04:51.120 --> 0:04:54.719 they were extraordinarily image conscious and they were always worried 0:04:54.760 --> 0:04:58.000 about saying the wrong thing and coming off too casually, 0:04:58.400 --> 0:05:00.800 and that seems to have gone away. And I think 0:05:00.839 --> 0:05:04.080 this generation of advisors it's more about the substance and 0:05:04.120 --> 0:05:07.800 the ideas and less about who's wearing a suit. You 0:05:07.839 --> 0:05:09.960 know who like we you know, none of us are 0:05:10.000 --> 0:05:12.280 trying to look and act like our fathers. We're trying 0:05:12.279 --> 0:05:14.960 to be our own people, and I think we want 0:05:15.080 --> 0:05:19.039 our clients to understand that we're real and we're authentic. 0:05:19.480 --> 0:05:22.599 Um and We're not putting on a show for them, 0:05:22.640 --> 0:05:24.760 We're we're being ourselves, and I think that resonates. I 0:05:24.760 --> 0:05:27.559 think it works really well in this era. So having 0:05:27.560 --> 0:05:30.359 the conference that was slightly more laid back and fun 0:05:30.480 --> 0:05:32.960 and youthful and energetic, it just made perfect sense to me. 0:05:33.839 --> 0:05:37.120 How many flip flops? Well, on Sunday I saw a 0:05:37.120 --> 0:05:39.680 lot that was the sort of half conference half like 0:05:39.720 --> 0:05:42.520 hanging up by the pool day but Monday not not really. Um, 0:05:42.560 --> 0:05:44.679 some some people in sneakers, but mostly people had shoes. 0:05:44.720 --> 0:05:46.640 Do you feel about it if somebody's in flip flops 0:05:46.680 --> 0:05:50.680 managing your money? That one step too far on a 0:05:50.760 --> 0:05:53.440 Monday at the conference? Probably I think that's a little 0:05:53.480 --> 0:05:55.800 a little bit too far. But the common dress was 0:05:55.839 --> 0:05:59.599 like maybe a shirt jacket, jeans. Uh. Some people just 0:05:59.600 --> 0:06:02.120 had a short on like a um dress shirt on. Um. 0:06:02.120 --> 0:06:05.400 There was you know, a couple of people who were 0:06:05.400 --> 0:06:07.039 a little more dressed up than that, But like I said, 0:06:07.080 --> 0:06:09.440 it was very casual, more casual than inside ets, which 0:06:09.480 --> 0:06:11.400 is pretty casual as it is. How do you feel 0:06:11.400 --> 0:06:14.080 about it when people at Bloomberg wear shorts to work 0:06:14.880 --> 0:06:17.039 like the R and D guys. Just in general, I 0:06:17.080 --> 0:06:20.080 get jealous because they're so in demand they can just 0:06:20.120 --> 0:06:22.039 come to work in shorts and it's fine. I saw 0:06:22.160 --> 0:06:24.800 one guy once and I was just like coders, No, No, 0:06:24.880 --> 0:06:27.440 I don't. I don't think that's appropriate. It might be 0:06:27.480 --> 0:06:30.279 a summer Friday, but like, dude, you're at work. No, 0:06:30.600 --> 0:06:33.239 there should be some level decorum, and there was. People 0:06:33.240 --> 0:06:36.120 look kind of cool. I gotta say so again, this 0:06:36.200 --> 0:06:38.680 is all part of a package that an advisor. Advisors 0:06:38.680 --> 0:06:41.560 interact with the clients, and so I think it says 0:06:41.600 --> 0:06:44.960 a lot about what the industry is going. Totally. Who 0:06:44.960 --> 0:06:47.560 else did you see? So? Nate Dacy, who is the 0:06:47.600 --> 0:06:50.040 host of another E t F podcast called et F Prime, 0:06:51.680 --> 0:06:54.680 also a friend because I was on the one last week, 0:06:55.200 --> 0:06:57.520 so um, and Nate's had me on a bunch of times. 0:06:57.520 --> 0:06:58.880 His podcast is really good. They do it out of 0:06:58.920 --> 0:07:02.839 Kansas City and it's real, um, real easy to understand. 0:07:02.920 --> 0:07:04.680 They really break it down. I love it. It's called 0:07:04.680 --> 0:07:07.960 et F Prime. Anyway, he was there and he talked 0:07:07.960 --> 0:07:11.160 about tech. Tech was a big thing here because if 0:07:11.240 --> 0:07:13.200 you are a client out there with a wealth manager, 0:07:13.520 --> 0:07:16.360 your expectations for how to interface with them are changing. 0:07:16.440 --> 0:07:19.480 And he addresses that if you think about how clients 0:07:19.560 --> 0:07:24.520 or how everyday people interact with technology. Is so Amazon, Uber, Netflix, 0:07:24.880 --> 0:07:28.480 that's their expectation when it comes to financial advice as well. 0:07:28.880 --> 0:07:31.160 Those companies, for better or worse, And I would say 0:07:31.160 --> 0:07:36.160 for better, have set client expectations around what technology and 0:07:36.240 --> 0:07:38.120 what what that should look like for them. So I 0:07:38.160 --> 0:07:40.240 think as an advisor we have to be thinking about that. 0:07:41.440 --> 0:07:43.160 You know, this one resonates with me a little bit 0:07:43.160 --> 0:07:49.120 because if you dabble with any sort of robo platform, 0:07:49.200 --> 0:07:51.880 it's it's pretty amazing how good it is. And then 0:07:51.880 --> 0:07:54.040 you go to like a bank and you know, check 0:07:54.080 --> 0:07:56.200 your bank balance and it's like, man, I can barely 0:07:56.240 --> 0:08:00.720 even transfer money around here. It's amazing how how good 0:08:00.720 --> 0:08:03.920 it's gotten um in a very short period of time. 0:08:04.120 --> 0:08:06.920 And and and he's right, you think about like a a UI, 0:08:07.040 --> 0:08:09.080 like a Netflix, and it's got to be like what 0:08:09.320 --> 0:08:12.040 is driving financial services now? Yeah, there was a couple 0:08:12.520 --> 0:08:14.480 presenters who talked a lot about this, so I think 0:08:14.520 --> 0:08:16.480 that was a big part of it. There's a guy, 0:08:16.640 --> 0:08:19.160 Eric Clark from Oriyan who provides a lot of this 0:08:19.360 --> 0:08:21.920 back office technology. What he said was interesting and I 0:08:21.920 --> 0:08:23.840 tweet this out of a lot of activity. Some people agreed. 0:08:23.880 --> 0:08:26.520 Some people didn't, which is that the advisor value proposition 0:08:27.040 --> 0:08:28.680 used to be investments. You know, I can get to 0:08:28.720 --> 0:08:30.960 the mutual funds, I can get you this now, or 0:08:31.000 --> 0:08:34.200 the stocks now. It's planning, right, because investments are cheap, 0:08:34.840 --> 0:08:36.640 and he thinks it's going to migrate to the client 0:08:36.679 --> 0:08:40.240 experience in the future, as even planning gets priced down 0:08:40.240 --> 0:08:43.760 by the robot. So client experience was a big one again. 0:08:44.360 --> 0:08:46.839 And this is where I think Ridholtz has a lot 0:08:46.880 --> 0:08:49.000 going for it because you know them, they're writing a 0:08:49.000 --> 0:08:51.760 lot there. They're adding value in all these different ways 0:08:51.800 --> 0:08:55.839 because again, every time something is value, it tends to 0:08:55.880 --> 0:08:58.120 get priced down and commoditized. So he's trying to stay 0:08:58.120 --> 0:09:01.560 ahead of that process. Okay, so we've we've talked to 0:09:02.240 --> 0:09:04.120 one of the guys who helps organize it. We've talked 0:09:04.160 --> 0:09:07.160 to you know, a peer of yours with a rival podcast. 0:09:07.200 --> 0:09:09.800 Who else we got, uh Nicole Boyson, who is a 0:09:09.840 --> 0:09:13.400 finance professor of Northeastern University. Do you know her before? Yeah? 0:09:13.520 --> 0:09:15.640 I met her um on Twitter, but then in person 0:09:15.679 --> 0:09:19.200 I met her at the Democratized quant Conference which is 0:09:19.480 --> 0:09:23.319 down at Villanova every year. Anyway, she's really smart, Um, 0:09:23.400 --> 0:09:25.480 she was down there because of course she teaches, but 0:09:25.480 --> 0:09:27.720 she also does a lot of work with writing papers 0:09:27.760 --> 0:09:31.080 about brokers and advisors, and some are both, Like you know, 0:09:31.120 --> 0:09:33.160 a Goldman could be both a broker and an advisor, 0:09:33.480 --> 0:09:35.640 but the payment systems of these how you get paid 0:09:35.720 --> 0:09:40.480 is different, and that incentive has really completely changed the 0:09:40.520 --> 0:09:43.400 whole apparatus. As on they moved from broker to a 0:09:43.640 --> 0:09:46.880 fee based advisor, and this is that move is why 0:09:46.920 --> 0:09:49.120 Passive is so big. So I asked her to just 0:09:49.200 --> 0:09:52.600 explain that move. And most people at this conference probably, 0:09:52.679 --> 0:09:54.280 I mean, I wouldn't give a percentage, but a high 0:09:54.280 --> 0:09:57.520 percentage are fee based advisors not brokers. I love that 0:09:57.559 --> 0:10:00.640 an academic is actually studying that. So I mean, in 0:10:00.679 --> 0:10:02.920 the old days, you know, you're a broker and you 0:10:02.960 --> 0:10:05.560 get paid by the mutual fund. And then that started 0:10:05.600 --> 0:10:08.559 to shift in more and more advisors became fee based advisors, 0:10:08.800 --> 0:10:11.120 and then within that space, more and more of the 0:10:11.120 --> 0:10:13.000 fee based advisor said, you know what, I'm gonna go 0:10:13.000 --> 0:10:15.119 out on my own. I don't want to be affiliated 0:10:15.120 --> 0:10:17.360 with a broker. I'm gonna start my own shop really 0:10:17.400 --> 0:10:21.679 focus on holistic financial planning, getting away from the transaction 0:10:21.760 --> 0:10:24.760 based way of being paid. And I think that this group, 0:10:24.800 --> 0:10:26.920 it's a young group, it's a vibrant group. People are 0:10:26.920 --> 0:10:30.199 really excited about serving their clients, and there's a huge 0:10:30.240 --> 0:10:33.000 push I think in two ways. I mean, one is technology, 0:10:33.320 --> 0:10:36.880 trying to really leverage technology so that you can focus 0:10:37.600 --> 0:10:40.240 on time with meeting with clients as opposed to you know, 0:10:40.480 --> 0:10:42.400 running an Excel spreadshea and trying to figure out what 0:10:42.400 --> 0:10:44.520 their assets look like. And then I think the other 0:10:44.559 --> 0:10:48.720 piece is really really serving clients in ways that probably 0:10:48.760 --> 0:10:52.160 we're more lip service before. So really integrating estate planning, 0:10:52.240 --> 0:10:55.440 really integrating kind of college planning and big picture planning 0:10:55.440 --> 0:10:58.920 and looking at a client's um you know where they're going, 0:10:59.320 --> 0:11:02.480 as opposed to just here's your canned allocations see you 0:11:02.520 --> 0:11:06.200 in a year. She really, I think nail the whole 0:11:06.320 --> 0:11:10.720 concept here. It's just aggressively, relentlessly increasing your value proposition 0:11:11.320 --> 0:11:13.560 so you can stay a step ahead of all the 0:11:13.559 --> 0:11:16.079 stuff that's getting priced down. I mean that's why I 0:11:16.080 --> 0:11:18.679 think it's interesting that like Barry and Co. Are actually 0:11:18.760 --> 0:11:20.360 the ones doing this right like there. I mean they 0:11:20.360 --> 0:11:24.600 epitomized this absolutely. I mean I have this idea for 0:11:24.679 --> 0:11:27.280 a book called The Big Long which is sort of 0:11:27.320 --> 0:11:29.960 tracking some of these fee based advisors who started this 0:11:30.000 --> 0:11:32.960 early on and who have been pretty optimistic about the market. 0:11:33.240 --> 0:11:35.839 I think the big short inspired a bunch of people 0:11:36.320 --> 0:11:38.679 to be very nerdy and call bubbles like It's like 0:11:38.720 --> 0:11:40.600 just the way Gordon Getko inspired a bunch of people 0:11:40.600 --> 0:11:42.680 who want to rule the world. I think the Big 0:11:42.720 --> 0:11:45.880 short inspired bubble callers, and these guys have remained optimistic. 0:11:45.920 --> 0:11:49.640 They fought back, and it's worked just staying long, staying optimistic, 0:11:49.760 --> 0:11:52.680 keeping people on a plan, investing not to gamble, but 0:11:52.800 --> 0:11:55.720 to benefit from the value created by people who go 0:11:55.760 --> 0:11:58.360 to work every day at these big companies. So this 0:11:58.600 --> 0:12:02.920 again small companies. You're right, So, uh, this is definitely 0:12:03.400 --> 0:12:07.520 again a whole mindset that's different in many different categories here. 0:12:07.559 --> 0:12:09.559 So I think that's why we're covering. I think that's 0:12:09.600 --> 0:12:13.520 why I went. And I think, uh, that incentive again, 0:12:13.640 --> 0:12:17.120 how you get paid, is such a big reason behind 0:12:17.200 --> 0:12:19.599 the rise of passive because once your your fee is 0:12:19.640 --> 0:12:22.440 a percentage of your client's assets and you know what's up, 0:12:22.720 --> 0:12:24.360 you're kind of like, well, I'm not gonna pay a lot. 0:12:24.360 --> 0:12:27.040 I I just wanted a lot of broad exposure, and 0:12:27.080 --> 0:12:28.959 I'll pick and choose my battles of where I go active, 0:12:28.960 --> 0:12:33.079 but otherwise just give me cheap beta, all right, Who's next? Um? 0:12:33.200 --> 0:12:38.920 Next is Tyrone Ross um. Tyrone Ross is a startup advisor, 0:12:39.080 --> 0:12:43.360 a crypto advisor. He advises millennials. How much crypto was there, 0:12:43.360 --> 0:12:47.120 by the way, A little handful, not a ton. Surprised, No, 0:12:47.360 --> 0:12:50.360 I mean, you know, crypto really goes with the youth, 0:12:50.400 --> 0:12:52.280 and so because it was younger, there was definitely a 0:12:52.280 --> 0:12:55.360 crypto element there. But again, most of these advisors are 0:12:55.520 --> 0:12:59.120 managing regular people's money and crypto isn't a huge part 0:12:59.160 --> 0:13:01.840 of any portfolio it anyway. He also says he's a 0:13:01.880 --> 0:13:04.000 voice for the voiceless on his Twitter and I met him. 0:13:04.000 --> 0:13:06.240 He is a great guy. We talked to him about 0:13:07.080 --> 0:13:09.920 doing good because I think the idea of these advisors really, 0:13:10.080 --> 0:13:13.000 I think have this. They really want to help, and 0:13:13.040 --> 0:13:17.199 I think not just helping people retire with assets and 0:13:17.280 --> 0:13:19.400 being able to like do the things they want, but 0:13:19.480 --> 0:13:23.760 also giving back. And Tyrone recently joined with Exponential ETFs 0:13:24.120 --> 0:13:28.079 to do investing classes and teaching in Detroit in inner 0:13:28.120 --> 0:13:30.880 cities to try to get more people into it because, 0:13:31.440 --> 0:13:34.559 as you know, the income inequality gap a big part 0:13:34.600 --> 0:13:37.240 of it is because half the country isn't in stocks, 0:13:37.800 --> 0:13:40.040 and that's driven a lot of the wedge between the 0:13:40.120 --> 0:13:42.320 really rich people and those who don't have it. So 0:13:42.360 --> 0:13:45.240 he talks about that when you break it down into 0:13:45.280 --> 0:13:48.560 those who are unbanked, underbanked, and and getting too the 0:13:48.600 --> 0:13:52.440 class structure of it you have, you get into people 0:13:52.440 --> 0:13:54.600 who have no access to the market at all. So 0:13:54.720 --> 0:13:56.760 those that own assets over the last ten years, like 0:13:56.760 --> 0:14:00.920 you said, so now creating awareness around what an e 0:14:01.040 --> 0:14:04.640 t F is, right, awareness around where when you go 0:14:04.679 --> 0:14:07.439 into your Sofi account or you have an Acorns account 0:14:07.640 --> 0:14:09.760 and you're you're actually putting money to work. This is 0:14:09.800 --> 0:14:13.440 what you're investing in those small steps basic education. I 0:14:13.480 --> 0:14:17.080 think now you start to get people exposed, right, you 0:14:17.120 --> 0:14:19.760 start to educate people, and you start to put them 0:14:19.760 --> 0:14:22.080 in a position where now they say, okay, this is 0:14:22.120 --> 0:14:24.240 a whole world. I knew nothing about what are the 0:14:24.240 --> 0:14:28.400 next steps. I lived it. He's like an activist. Yeah, 0:14:28.560 --> 0:14:31.000 and you know it's really true. I'm e t s 0:14:31.000 --> 0:14:33.240 can be bought for you know, there's no minimum investment. Well, 0:14:33.280 --> 0:14:35.280 I was just just get your hooks on the market. 0:14:35.280 --> 0:14:37.680 Good things happen. Literally, we've had multiple people on already 0:14:37.680 --> 0:14:40.560 talk about technology and how transformative, how e t s 0:14:40.600 --> 0:14:44.000 are technology play and you think about how easy it 0:14:44.040 --> 0:14:45.960 is to like do something on your phone. All you 0:14:46.000 --> 0:14:48.120 need is the awareness. So if somebody like that it's 0:14:48.160 --> 0:14:50.320 going to a city like Detroit and trying to make 0:14:50.320 --> 0:14:53.280 a difference, it's really interesting. Another thing about Tyrone is 0:14:53.360 --> 0:14:56.280 I find him to be bleeding edge when it comes 0:14:56.320 --> 0:15:00.240 to fearlessness on social media. He'll he's an extract guy, 0:15:00.320 --> 0:15:03.320 and he will do He'll tape himself on his iPhone 0:15:03.320 --> 0:15:05.840 after working out, just giving his thoughts on random things. 0:15:06.880 --> 0:15:09.200 It takes a brave soul to do that. He talks 0:15:09.240 --> 0:15:13.000 about the authenticity that's needed and it is helpful and 0:15:13.120 --> 0:15:15.520 social media and social media was a big part of 0:15:15.520 --> 0:15:17.600 this because a lot of younger clients are going to 0:15:17.680 --> 0:15:20.120 look for you on social media not in traditional forms. 0:15:20.160 --> 0:15:23.280 You're a little bit like that, especially with the Eagles. Yeah, 0:15:23.280 --> 0:15:26.120 I mean I tweet my thoughts sometimes, specially at sports, 0:15:26.160 --> 0:15:28.440 but I don't. I'm just not they're whipping up my 0:15:28.480 --> 0:15:31.000 phone and like you know, at my house and just 0:15:31.040 --> 0:15:33.920 saying like a reaction on something. But I've seen like 0:15:33.960 --> 0:15:35.840 sports anilists to it, like Stephen A. Smith will do 0:15:35.880 --> 0:15:38.080 it sometimes and it just seems like that's where things 0:15:38.120 --> 0:15:41.080 are going. And people like that because it's like unpolished, 0:15:41.240 --> 0:15:43.720 fast take. Yeah, it's a difficult thing to do, right 0:15:43.760 --> 0:15:45.920 You You open yourself to a lot of ridicule on 0:15:46.000 --> 0:15:49.600 social media period when you post anything, let alone being vulnerable. 0:15:49.800 --> 0:15:52.080 But I think what I want people to do is 0:15:52.600 --> 0:15:57.880 understand that talking about the your weaknesses, right, things that 0:15:57.920 --> 0:16:01.280 you've gone through your experiences. Everyone has a story. Not 0:16:01.440 --> 0:16:03.240 just want people to tell their story because I think 0:16:03.240 --> 0:16:06.120 if we do that, they were not so divided, right 0:16:06.200 --> 0:16:08.560 and and and we can understand what it means to 0:16:08.600 --> 0:16:10.960 be a black man versus a white woman versus to 0:16:11.000 --> 0:16:13.320 be someone who comes from affluence but to someone who doesn't. 0:16:13.400 --> 0:16:16.760 There's a struggle in everybody's story. No one is exempt, right. 0:16:16.840 --> 0:16:19.040 We all live life, and life will test you in 0:16:19.080 --> 0:16:21.960 their certain trials. I've seen him tweet out stuff that gets, 0:16:22.400 --> 0:16:26.480 you know, exponential more likes then corporate handles that tweet 0:16:26.480 --> 0:16:28.080 out stuff that you can tell has been approved by 0:16:28.120 --> 0:16:31.760 thirteen lawyers, and he has a fiftieth of the followers 0:16:31.840 --> 0:16:35.360 as that other handle. So he's what he's doing works, 0:16:35.400 --> 0:16:38.320 and it again it's showing your weakness. Being honest, it's hard. 0:16:39.320 --> 0:16:41.840 We gotta hang with this guy. We should have mon 0:16:42.240 --> 0:16:51.760 for sure. Um down the road. Who's next next is 0:16:51.800 --> 0:16:55.560 Patrick O'Shaughnessy. He is an asset manager quant and he's 0:16:55.560 --> 0:16:57.600 also got a podcast, invest Like the Best, which is 0:16:57.720 --> 0:16:59.640 really great, a highly recommended. I was on it once. 0:17:00.200 --> 0:17:02.400 When I went on it, I got like three followers. 0:17:02.400 --> 0:17:04.680 Like this guy is has a lot of influence out there. 0:17:05.080 --> 0:17:08.920 He basically unveiled something called Canvas, which is what we 0:17:08.960 --> 0:17:11.560 talk about direct indexing. It's a tool where you just 0:17:11.600 --> 0:17:14.480 sort of flip a few knobs, put your interest in 0:17:14.520 --> 0:17:17.639 and the advisor is able to give a customized portfolio. 0:17:18.000 --> 0:17:20.480 Skip the E t F and just get what you want. 0:17:20.520 --> 0:17:22.720 You know, you want the SMP minus one or two stocks. 0:17:22.920 --> 0:17:24.760 We can do that. You want this and this and 0:17:24.800 --> 0:17:27.480 then the only. The cost will be based on how 0:17:27.560 --> 0:17:29.159 much active share you have, so they don't charge you 0:17:29.200 --> 0:17:32.520 for beta only active share beyond that. So it was 0:17:32.560 --> 0:17:35.840 cutting edge, very easy to follow, and I think this 0:17:35.880 --> 0:17:38.200 could resonate. You know, I've been skeptical and direct indexing, 0:17:38.240 --> 0:17:41.560 but this presentation I think made me move the needle 0:17:41.560 --> 0:17:43.000 for me a little bit so here he is talking 0:17:43.040 --> 0:17:47.000 about it. Canvas is an investing platform software that allows 0:17:47.000 --> 0:17:50.760 advisors to design deeply customized strategies for all of their clients. 0:17:51.040 --> 0:17:53.280 This is a big trend, this idea of customization. I 0:17:53.280 --> 0:17:55.840 think technology has only just caught up to the point 0:17:55.920 --> 0:17:58.040 that we can actually do this and implement it. So 0:17:58.280 --> 0:18:01.760 no matter the client's circumstances and preferences, the low basis 0:18:01.760 --> 0:18:03.840 stock they own, um, the things they care about, the 0:18:03.840 --> 0:18:06.199 stocks they don't like, the E s G. Considerations they 0:18:06.200 --> 0:18:08.600 want in the portfolio, all of these things can now 0:18:08.640 --> 0:18:12.080 be tailored sort of a fingerprint portfolio to each individual, 0:18:12.359 --> 0:18:14.399 so they can get something from the advisor they can 0:18:14.480 --> 0:18:18.240 get elsewhere that's better wrapped around their circumstances and preferences. 0:18:18.920 --> 0:18:21.080 That sounds great. Why have you been hard on this? Well, 0:18:21.240 --> 0:18:23.480 that brings us to our next interview. I went back 0:18:23.520 --> 0:18:25.520 to nature a CI who is an advisor in Missouri. 0:18:25.600 --> 0:18:29.640 I mean he's got clients. I asked them, here's why 0:18:29.840 --> 0:18:31.840 A three basis point e t f to gives you 0:18:31.840 --> 0:18:34.199 the whole market and like another one for fixed income, 0:18:35.040 --> 0:18:37.000 they take care of all bunch of stuff that you 0:18:37.000 --> 0:18:39.360 don't realize. I mean you outsource a ton of stuff 0:18:39.520 --> 0:18:43.359 for four basis points. That is a seriously good value proposition. 0:18:44.040 --> 0:18:47.880 So this is trying to replace your whole portfolio. It's 0:18:47.880 --> 0:18:49.560 not like saying, hey, give us like a little tiny 0:18:49.560 --> 0:18:51.240 piece like a like a like a fun would be 0:18:51.280 --> 0:18:53.800 like hey just put two percent in me. This is like, hey, 0:18:54.040 --> 0:18:56.160 use us instead of all your E t F. So 0:18:56.640 --> 0:19:00.040 again you're going, yeah, absolutely out. I will say I 0:19:00.040 --> 0:19:02.840 I like I said, I'm this was a great presentation. 0:19:02.880 --> 0:19:04.640 I think I heard talk to some people who said 0:19:04.640 --> 0:19:06.720 for certain clients this will be great, especially once the 0:19:06.800 --> 0:19:09.080 one the newest stuff, or might be very picky about 0:19:09.119 --> 0:19:11.240 what they like or E s G focused. But here's 0:19:11.480 --> 0:19:15.600 Nate talking about what why he is skeptical to use 0:19:15.640 --> 0:19:19.439 it for his clients at least right now. The value 0:19:19.480 --> 0:19:23.080 proposition of E T S is so compelling right now 0:19:23.119 --> 0:19:26.040 that I do think direct indexine is going to have 0:19:26.119 --> 0:19:30.040 a difficult time significantly penetrating that market. I think the 0:19:30.080 --> 0:19:32.840 best use case for direct indexine is E s G. 0:19:33.760 --> 0:19:37.200 And one of the comments was made on the panel 0:19:37.280 --> 0:19:38.960 that use ad on today the Battle of the E 0:19:39.040 --> 0:19:42.600 t F pundance, that direct indexinge will swamp the demand 0:19:42.960 --> 0:19:46.000 for E s g e t S. I agree with that. UM, 0:19:46.040 --> 0:19:50.280 outside of that particular use case, I just wonder direct 0:19:50.320 --> 0:19:54.440 indexing to me, you're adding active management into the process. 0:19:54.680 --> 0:19:57.679 You're gonna have tracking error even if it's minor, and 0:19:57.720 --> 0:20:01.800 so as an isser, do you want to bring that 0:20:01.880 --> 0:20:04.480