1 00:00:06,760 --> 00:00:09,799 Speaker 1: Welcome to Drugs. I'm Joel Webber and I'm Eric bel Tunis, 2 00:00:11,840 --> 00:00:13,400 Speaker 1: and were about to talk to a lot of people 3 00:00:13,440 --> 00:00:16,720 Speaker 1: this year, but we haven't made things personal. And it's 4 00:00:16,720 --> 00:00:19,480 Speaker 1: the holidays, so we're gonna make it personal. I'd like 5 00:00:19,600 --> 00:00:21,360 Speaker 1: you to meet my dad, and I'd like you to 6 00:00:21,440 --> 00:00:24,279 Speaker 1: meet my dad. Okay, so this already happened. We brought 7 00:00:24,280 --> 00:00:27,360 Speaker 1: the dad's in separately and we got to interview them. 8 00:00:27,400 --> 00:00:29,360 Speaker 1: One thing for both of us, I think is that 9 00:00:29,400 --> 00:00:31,680 Speaker 1: we've learned a little bit about money and investing through 10 00:00:31,680 --> 00:00:34,480 Speaker 1: our dads. Yeah. I mean the way you learn about 11 00:00:34,479 --> 00:00:36,599 Speaker 1: a lot is through your parents. I've learned a lot 12 00:00:36,640 --> 00:00:39,519 Speaker 1: from both my mom and my dad, and my dad 13 00:00:39,560 --> 00:00:42,800 Speaker 1: in particular, uh, in the financial side. I definitely picked 14 00:00:42,840 --> 00:00:44,600 Speaker 1: up some things from him, not all that I applied, 15 00:00:45,080 --> 00:00:47,240 Speaker 1: which is a good thing, as we're about to find out. Yeah, 16 00:00:47,240 --> 00:00:49,279 Speaker 1: but obviously, like we work at a media company and 17 00:00:49,320 --> 00:00:52,600 Speaker 1: we're writing about, you know, how to invest stories about investment. 18 00:00:52,640 --> 00:00:54,480 Speaker 1: But you know, a lot of stuff you get in 19 00:00:54,520 --> 00:00:57,760 Speaker 1: life is from your immediate family. And uh, sometimes I'll 20 00:00:57,800 --> 00:00:59,320 Speaker 1: say something and I'm like, oh my god, that's my 21 00:00:59,400 --> 00:01:01,840 Speaker 1: dad talking. It can be both good and more and 22 00:01:01,880 --> 00:01:04,440 Speaker 1: more and more as you get absolutely, So what's interesting 23 00:01:04,520 --> 00:01:08,000 Speaker 1: is that they are almost polar opposites. They're like yin 24 00:01:08,040 --> 00:01:11,160 Speaker 1: into each other's yang. Yes, I think that's a good assessment, 25 00:01:11,400 --> 00:01:14,319 Speaker 1: which is good for this because we get two different 26 00:01:14,440 --> 00:01:18,280 Speaker 1: sort of perspectives from that generation speaking, which these guys 27 00:01:18,319 --> 00:01:21,520 Speaker 1: are baby boomers. Yeah, that's right. And there's a lot 28 00:01:21,560 --> 00:01:22,960 Speaker 1: of E t F studies that come up from I 29 00:01:23,040 --> 00:01:25,160 Speaker 1: Shares and Schwab and they break down E t F 30 00:01:25,240 --> 00:01:27,760 Speaker 1: usage by generation. And I've always found it interesting that 31 00:01:27,800 --> 00:01:31,520 Speaker 1: the Boomers are the generation least likely to use ets. 32 00:01:31,600 --> 00:01:34,760 Speaker 1: So the latest SWAB survey has of them. I think 33 00:01:34,800 --> 00:01:38,160 Speaker 1: ETFs are a good choice for the portfolio, whereas millennials 34 00:01:38,200 --> 00:01:40,960 Speaker 1: that numbers about double. Then you go Gen X and 35 00:01:41,040 --> 00:01:43,720 Speaker 1: then the Silvers are actually more users than the boomers. 36 00:01:43,800 --> 00:01:46,920 Speaker 1: So the boomers, that's another reason they're kind of fascinating 37 00:01:47,080 --> 00:01:50,280 Speaker 1: is that they probably have a lot of their money 38 00:01:50,320 --> 00:01:52,920 Speaker 1: in mutual funds and they've built up the wealth. Maybe 39 00:01:52,920 --> 00:01:54,800 Speaker 1: they don't want the capital gains, but they're certainly the 40 00:01:54,960 --> 00:01:58,680 Speaker 1: generation that uses them the least. They've also seen a lot, right, 41 00:01:59,040 --> 00:02:01,080 Speaker 1: and this year has been an interesting one, you know, 42 00:02:01,160 --> 00:02:03,480 Speaker 1: we've had we've been on this epic bowl market and 43 00:02:03,520 --> 00:02:06,560 Speaker 1: this year things changed. Yeah, that's right. And I mean 44 00:02:06,560 --> 00:02:08,680 Speaker 1: I gotta say, look, the market as of right now 45 00:02:08,840 --> 00:02:11,359 Speaker 1: is down four percent this year. It's not that big 46 00:02:11,440 --> 00:02:13,920 Speaker 1: of a deal. It just look, if you're walking around 47 00:02:14,040 --> 00:02:17,040 Speaker 1: Utopia for like eight years and you stub your toe, 48 00:02:17,080 --> 00:02:19,440 Speaker 1: it seems like the worst thing on earth. So it's 49 00:02:19,480 --> 00:02:21,239 Speaker 1: not that bad of a year. The market is still 50 00:02:21,320 --> 00:02:24,800 Speaker 1: up around two since the Great Financial Crisis. But our 51 00:02:24,919 --> 00:02:27,600 Speaker 1: dads have seen a lot. They saw interest rate spike 52 00:02:27,680 --> 00:02:30,400 Speaker 1: up to unguidly levels in the eighties. Uh, they saw 53 00:02:30,560 --> 00:02:32,239 Speaker 1: the nineties they used go go back this so the 54 00:02:32,280 --> 00:02:35,160 Speaker 1: oil crisis, and back in the seventies. They've seen the 55 00:02:35,200 --> 00:02:38,799 Speaker 1: Internet bubble. So perspective, absolutely, perspective is really key, I 56 00:02:38,840 --> 00:02:43,960 Speaker 1: think to investing and in life. This time on trillions 57 00:02:44,440 --> 00:02:50,120 Speaker 1: are two dads. Okay, ken, I've never met you. Who 58 00:02:50,240 --> 00:02:55,200 Speaker 1: are you. I'm a old, washed up highway paving contractor 59 00:02:56,000 --> 00:02:59,640 Speaker 1: that worked in um about forty of the United States, 60 00:02:59,680 --> 00:03:03,280 Speaker 1: believe it or not, paving rural highways in places like 61 00:03:03,560 --> 00:03:07,919 Speaker 1: North Carolina, Arkansas, Colorado, and um here. I'm at the 62 00:03:08,000 --> 00:03:11,400 Speaker 1: opposite end of the world in uptown midtown Manhattan. Well 63 00:03:11,440 --> 00:03:14,560 Speaker 1: welcome and thank you for keeping our highways in such 64 00:03:14,639 --> 00:03:17,040 Speaker 1: good condition, some of them, some of them. Right, He's 65 00:03:17,040 --> 00:03:19,120 Speaker 1: why I moved every two years. People say, are you 66 00:03:19,200 --> 00:03:21,240 Speaker 1: a military brat? I know I'm a highway paving brat. 67 00:03:21,520 --> 00:03:23,400 Speaker 1: So I have a personal question for you, which is 68 00:03:23,720 --> 00:03:27,160 Speaker 1: when did um the letters E T F come out 69 00:03:27,160 --> 00:03:30,200 Speaker 1: of Eric's mouth for the first time? Um, I guess 70 00:03:30,280 --> 00:03:32,720 Speaker 1: when he got involved with them, which in my memory 71 00:03:32,919 --> 00:03:36,840 Speaker 1: like a drug only about ten years ago? Yeah, when 72 00:03:36,920 --> 00:03:39,560 Speaker 1: did L first? It was before that he was just 73 00:03:39,680 --> 00:03:42,160 Speaker 1: you know, hiding it under the pillow for him. It 74 00:03:42,240 --> 00:03:45,440 Speaker 1: was the Sergeant Pepper's album, I'm sure, But no, when 75 00:03:45,680 --> 00:03:48,040 Speaker 1: I mean, I know when, when was it? I'm curious about. 76 00:03:48,240 --> 00:03:51,200 Speaker 1: To me, it seems like your involvement with him is 77 00:03:51,240 --> 00:03:52,760 Speaker 1: the first time I ever heard of him, and that 78 00:03:52,800 --> 00:03:55,400 Speaker 1: would be about ten years ago, even though I think 79 00:03:55,440 --> 00:03:58,320 Speaker 1: you've been with Bloomberg close to twenty. That's a great twelve. 80 00:03:58,400 --> 00:04:00,320 Speaker 1: I got him in two thousand and six seven. So 81 00:04:00,520 --> 00:04:02,760 Speaker 1: there you go, and it was like a drug gateway truck. 82 00:04:02,840 --> 00:04:06,440 Speaker 1: Then look at you now, So did you know about 83 00:04:06,520 --> 00:04:09,720 Speaker 1: et F before that? No? Can you describe sort of 84 00:04:10,200 --> 00:04:15,520 Speaker 1: how you view yourself as an investor? Uh, with no discipline, 85 00:04:16,240 --> 00:04:21,000 Speaker 1: pretty radical, like a gambler. And I started when I 86 00:04:21,120 --> 00:04:24,760 Speaker 1: was thirteen. I got my first job and I saved 87 00:04:24,800 --> 00:04:28,680 Speaker 1: six hundred dollars during the summer. At that's great. It's 88 00:04:29,000 --> 00:04:33,880 Speaker 1: fifty seven years ago. So my mother and father didn't 89 00:04:34,120 --> 00:04:37,760 Speaker 1: know anything about money or investing or anything. So I, 90 00:04:38,560 --> 00:04:41,880 Speaker 1: I don't know why, but I did from the newspaper. 91 00:04:42,120 --> 00:04:45,440 Speaker 1: And I wanted to buy this little company called s O, 92 00:04:45,839 --> 00:04:48,840 Speaker 1: which is that then became Exxon, and back then it 93 00:04:48,920 --> 00:04:51,560 Speaker 1: was standard oil in New Jersey. And I had six 94 00:04:51,640 --> 00:04:55,040 Speaker 1: hundred bucks. So we went to see a I guess 95 00:04:55,080 --> 00:04:57,919 Speaker 1: you call him a stockbroker and lo and behold if 96 00:04:57,960 --> 00:05:01,440 Speaker 1: he didn't my mother knew nothing, and he convinced my 97 00:05:01,560 --> 00:05:04,520 Speaker 1: mother to convince me to buy some stupid mutual fund. 98 00:05:04,960 --> 00:05:08,719 Speaker 1: So I bought stupid mutual fund. Ten years later, at 99 00:05:08,800 --> 00:05:12,000 Speaker 1: twenty three, I went to buy my first house. I 100 00:05:12,600 --> 00:05:17,120 Speaker 1: sold the mutual fund for six hundred dollars. Right, the 101 00:05:17,520 --> 00:05:21,680 Speaker 1: s O was now worth twenty seven thousand. The house 102 00:05:21,800 --> 00:05:25,160 Speaker 1: I was buying was twenty nine. That right, there is 103 00:05:25,200 --> 00:05:27,520 Speaker 1: why funds are in trouble. This is not a guy 104 00:05:27,720 --> 00:05:32,920 Speaker 1: that sounds like he helped create Eric baltunas well. The 105 00:05:33,160 --> 00:05:36,800 Speaker 1: story is crazy though. That mutual fund obviously sucked. It 106 00:05:36,920 --> 00:05:39,080 Speaker 1: took all you know, to have to make no money 107 00:05:39,120 --> 00:05:41,039 Speaker 1: in a time when when a energy stock goes up 108 00:05:41,080 --> 00:05:43,920 Speaker 1: that much. This is why people soured. That was a 109 00:05:44,000 --> 00:05:47,280 Speaker 1: long time ago, so you can imagine how how in 110 00:05:47,360 --> 00:05:50,040 Speaker 1: trouble mutual funds are if people have had those experiences. 111 00:05:50,120 --> 00:05:51,880 Speaker 1: But but you also did talk about how you did 112 00:05:52,000 --> 00:05:55,000 Speaker 1: use mutual funds for things like my college, and they 113 00:05:55,080 --> 00:05:58,680 Speaker 1: did work right again, I created you, um when I 114 00:05:58,760 --> 00:06:02,960 Speaker 1: was twenty five. So after after I lost all that 115 00:06:03,080 --> 00:06:06,680 Speaker 1: money on what would have been Exxon, I got back 116 00:06:06,760 --> 00:06:10,320 Speaker 1: into mutual funds as a matter of a conservative investment 117 00:06:10,760 --> 00:06:15,000 Speaker 1: for your college. Well you were zero or one, so 118 00:06:15,200 --> 00:06:19,400 Speaker 1: I thought mutual funds with to three percent compounded annually 119 00:06:19,800 --> 00:06:23,320 Speaker 1: reinvest the dividend was a conservative and good way to go, 120 00:06:23,839 --> 00:06:26,720 Speaker 1: and and it was. It was through the Jimmy Carter years. 121 00:06:27,120 --> 00:06:31,080 Speaker 1: They were absolutely fantastic, and I ended up sending you 122 00:06:31,480 --> 00:06:36,760 Speaker 1: and to step siblings of yours to college, all paid 123 00:06:36,839 --> 00:06:39,800 Speaker 1: for and by the time the third one graduated, I 124 00:06:39,880 --> 00:06:42,160 Speaker 1: had no money left. But that was the plan of 125 00:06:42,240 --> 00:06:46,560 Speaker 1: the mutual funds. So I have you know, ambivalent experience, 126 00:06:46,600 --> 00:06:48,240 Speaker 1: And did you ever put you know, that money on 127 00:06:48,279 --> 00:06:50,600 Speaker 1: the roulette again for trying to buy that single stock 128 00:06:50,680 --> 00:06:53,960 Speaker 1: like you thought you messed with. Yeah, then I took 129 00:06:54,040 --> 00:06:57,720 Speaker 1: about I reckon a decade off. I don't know what 130 00:06:57,839 --> 00:07:02,280 Speaker 1: I did, but in about two thousand and eight and 131 00:07:02,440 --> 00:07:06,239 Speaker 1: early part of two thousand nine, my company went away 132 00:07:06,720 --> 00:07:09,960 Speaker 1: and I got my initial investment in that company back, 133 00:07:10,120 --> 00:07:13,040 Speaker 1: and my mother died and I got some inheritance from her. 134 00:07:13,400 --> 00:07:17,600 Speaker 1: I took all the money because I quote unquote didn't 135 00:07:17,640 --> 00:07:20,559 Speaker 1: need it. I was, you know, okay, And I bought 136 00:07:21,080 --> 00:07:25,320 Speaker 1: uh straight stocks because it was the low bottom of 137 00:07:25,480 --> 00:07:29,480 Speaker 1: the of the bowl man. It was I was telling Eric, 138 00:07:29,800 --> 00:07:33,680 Speaker 1: CBS was five dollars, a T T was nine, all 139 00:07:33,760 --> 00:07:35,400 Speaker 1: kinds of money just to throw it. It was just 140 00:07:35,800 --> 00:07:40,120 Speaker 1: so I bought everything, and in I don't know when 141 00:07:40,160 --> 00:07:43,000 Speaker 1: the boom was, but five seven years later my money 142 00:07:43,080 --> 00:07:45,920 Speaker 1: had more than doubled, and it was just wonderful. So 143 00:07:46,040 --> 00:07:50,080 Speaker 1: then I became like a degenerate gambler and quickly lost, 144 00:07:51,640 --> 00:07:57,360 Speaker 1: quickly gave back all my gain. But but luckily, unlikely 145 00:07:57,440 --> 00:08:01,640 Speaker 1: degenerate gambler, I stopped short of the you know, the 146 00:08:01,800 --> 00:08:05,560 Speaker 1: breadline and took the exact amount of money that I 147 00:08:05,680 --> 00:08:08,760 Speaker 1: came into an oh eight oh nine, which like I said, 148 00:08:08,840 --> 00:08:13,280 Speaker 1: had doubled then halved, and said, the heck with this 149 00:08:13,440 --> 00:08:16,480 Speaker 1: and this, by the way, it only happened two years ago. 150 00:08:16,840 --> 00:08:21,600 Speaker 1: Two years ago, I was doing three to five trades 151 00:08:21,720 --> 00:08:25,560 Speaker 1: a week. Now this year and I've done three trades 152 00:08:25,760 --> 00:08:30,520 Speaker 1: this year, and I took all the that's the hard way, 153 00:08:30,640 --> 00:08:32,679 Speaker 1: but I had the brains to get out. And all 154 00:08:32,760 --> 00:08:39,559 Speaker 1: I bought since then was British Petroleum Shell, some great 155 00:08:39,640 --> 00:08:45,200 Speaker 1: company that I got lucky with Williams Partners. They doubled 156 00:08:45,320 --> 00:08:49,040 Speaker 1: and they paid like eight percent yield and uh and 157 00:08:49,240 --> 00:08:51,280 Speaker 1: a T and T. So I put all my money 158 00:08:51,440 --> 00:08:53,760 Speaker 1: just to get yield because I didn't want to see 159 00:08:53,800 --> 00:08:56,480 Speaker 1: that next day go away. And now I don't even 160 00:08:56,559 --> 00:09:01,120 Speaker 1: have to watch the tickers saw on TV during the 161 00:09:01,200 --> 00:09:04,680 Speaker 1: daytime because I'm pretty safe, although I try to watch 162 00:09:04,720 --> 00:09:09,600 Speaker 1: the Bloomberg Network every chance I get. And let's talk 163 00:09:09,640 --> 00:09:11,959 Speaker 1: about this situation that happened a while ago where he 164 00:09:12,400 --> 00:09:16,400 Speaker 1: you called me one time and you said, listen, I 165 00:09:16,559 --> 00:09:19,320 Speaker 1: think the market's going to go to hell. What will 166 00:09:19,400 --> 00:09:21,800 Speaker 1: give me the most return if I think that? So 167 00:09:22,679 --> 00:09:24,880 Speaker 1: I said, and believe me. I had all late, all 168 00:09:24,960 --> 00:09:27,000 Speaker 1: kind of warnings down and I said, if you think 169 00:09:27,040 --> 00:09:28,680 Speaker 1: it's going to go to hell in a couple of days, 170 00:09:29,120 --> 00:09:32,360 Speaker 1: you can use t vix. This is the double leveraged vix. 171 00:09:32,800 --> 00:09:35,120 Speaker 1: But you have to use a short term. Your opinion 172 00:09:35,160 --> 00:09:36,199 Speaker 1: has to be it's going to go to hell in 173 00:09:36,240 --> 00:09:37,599 Speaker 1: a couple of days or a week, and then you 174 00:09:37,679 --> 00:09:39,719 Speaker 1: got to get out if it doesn't or does, so 175 00:09:39,840 --> 00:09:42,600 Speaker 1: talk about your experience with this is a red light product. 176 00:09:42,720 --> 00:09:45,000 Speaker 1: Oh that in our traffic light system. This is hard read. 177 00:09:45,040 --> 00:09:48,480 Speaker 1: It's equivalent of an NC seventeen rating of a movie. 178 00:09:49,040 --> 00:09:51,400 Speaker 1: And you use it. Talk about your actually, you know, 179 00:09:51,720 --> 00:09:54,720 Speaker 1: technically played with power tools for a living, So that's true. 180 00:09:54,760 --> 00:09:56,840 Speaker 1: And I did. I gave him all the warning labels, 181 00:09:56,840 --> 00:09:58,640 Speaker 1: you know, I sold him the chainsaw and stood there 182 00:09:58,640 --> 00:10:00,480 Speaker 1: and told him everything that can go ken. What did 183 00:10:00,520 --> 00:10:07,079 Speaker 1: you do? Um everything? I shouldn't have disobeyed all the 184 00:10:07,160 --> 00:10:10,439 Speaker 1: good advice, disobeyed the warning sides and went in. But 185 00:10:10,600 --> 00:10:13,400 Speaker 1: it was a little bit of mad money over the 186 00:10:13,520 --> 00:10:17,840 Speaker 1: next stag money. So anyway, it's all gone. And uh, 187 00:10:18,360 --> 00:10:21,679 Speaker 1: t vix just wiped me out three different times. That's 188 00:10:21,720 --> 00:10:24,600 Speaker 1: how stupid I am. Three and so. Talk about one 189 00:10:24,640 --> 00:10:26,280 Speaker 1: of those times that you thought the market was going 190 00:10:26,320 --> 00:10:28,680 Speaker 1: to tank and it didn't. What happened? Yeah, I had 191 00:10:28,880 --> 00:10:32,400 Speaker 1: um some mad money and when the election of Hillary 192 00:10:32,440 --> 00:10:36,719 Speaker 1: Clinton against um Mr Trump occurred, I was positive that 193 00:10:36,880 --> 00:10:39,840 Speaker 1: Hillary Clinton would win and in my view, the stock 194 00:10:39,920 --> 00:10:44,480 Speaker 1: market would tank with her victory. And anyway, that was 195 00:10:44,559 --> 00:10:47,079 Speaker 1: my view, So I loaded up on t VIX. The 196 00:10:47,200 --> 00:10:52,000 Speaker 1: rest is history. Next monthly, what we need to do 197 00:10:52,080 --> 00:10:53,920 Speaker 1: is have him on TV telling you what to do 198 00:10:54,040 --> 00:10:56,199 Speaker 1: and then do the exact option. We need an inverse, Kenny, 199 00:10:58,120 --> 00:10:59,920 Speaker 1: So we did okay with the energy stocks. I don't 200 00:11:00,120 --> 00:11:06,280 Speaker 1: that could be a ticker, can I have? I have 201 00:11:06,400 --> 00:11:10,000 Speaker 1: a friend who gives me recommendations on college football and 202 00:11:10,120 --> 00:11:14,240 Speaker 1: I bet the opposite I win. Someone could this could 203 00:11:14,240 --> 00:11:17,200 Speaker 1: be a lucrative product, And you know you bring up 204 00:11:17,240 --> 00:11:19,800 Speaker 1: college football and gambling like talk a little bit about 205 00:11:20,480 --> 00:11:24,880 Speaker 1: that aspect of do you find similarities between betting on 206 00:11:25,000 --> 00:11:28,840 Speaker 1: sports and the market. Absolutely, to me, it's all a gamble, 207 00:11:29,440 --> 00:11:33,120 Speaker 1: except for like I said recently, a conservative and went 208 00:11:33,200 --> 00:11:36,160 Speaker 1: with these oil and m A T and T. But 209 00:11:36,840 --> 00:11:39,680 Speaker 1: any time you've been on a football game, where baseball game, 210 00:11:40,280 --> 00:11:42,160 Speaker 1: or go to Vegas in my view, you have to 211 00:11:42,240 --> 00:11:45,600 Speaker 1: be prepared to lose your budget, you know, and when 212 00:11:45,640 --> 00:11:47,880 Speaker 1: you lose your budget, you go home, you quit gambling. 213 00:11:48,200 --> 00:11:50,720 Speaker 1: Well that's what I did with a lot of stocks, 214 00:11:50,840 --> 00:11:55,400 Speaker 1: and UM lost most of the time. That's an untraditional 215 00:11:55,480 --> 00:12:02,960 Speaker 1: way of thinking about investing. How do you feel about 216 00:12:03,000 --> 00:12:05,480 Speaker 1: E T F? I think, from my limited knowledge, which 217 00:12:05,559 --> 00:12:09,400 Speaker 1: is through Eric, it's a great product because they, as 218 00:12:09,480 --> 00:12:12,920 Speaker 1: he always says, the expense ratio is good and low. 219 00:12:13,240 --> 00:12:15,720 Speaker 1: But the other thing about him that makes them logical 220 00:12:15,840 --> 00:12:18,439 Speaker 1: to me, even though I don't have any except for 221 00:12:18,559 --> 00:12:21,280 Speaker 1: the dreaded t VIX, which, by the way, keeps flitting 222 00:12:21,360 --> 00:12:24,680 Speaker 1: it one to ten, not ten to one, one to ten, 223 00:12:25,000 --> 00:12:27,040 Speaker 1: then it does it again, So I think I'm down 224 00:12:27,120 --> 00:12:30,280 Speaker 1: to like one to five hundred, So I think I 225 00:12:30,400 --> 00:12:35,439 Speaker 1: have five shares of I'm gonna get fill aid for 226 00:12:35,679 --> 00:12:37,880 Speaker 1: being the E t F analyst who recommended his dad 227 00:12:38,000 --> 00:12:41,240 Speaker 1: used t vix. It's probably it's the worst possible thing 228 00:12:41,320 --> 00:12:43,160 Speaker 1: that I could be known for. However, you can redeem 229 00:12:43,160 --> 00:12:46,240 Speaker 1: yourself with kidnex. Well, no, at least this is good 230 00:12:46,280 --> 00:12:49,199 Speaker 1: for posterity. Now everybody knows that this guy learned the 231 00:12:49,240 --> 00:12:51,760 Speaker 1: hard way. Happens to my dad but again, I want 232 00:12:51,760 --> 00:12:53,760 Speaker 1: to make it clear. I did give over all of 233 00:12:53,840 --> 00:12:56,240 Speaker 1: the warnings and I said hold it for a week. 234 00:12:57,600 --> 00:13:01,439 Speaker 1: When when you buy t VX by a shop through 235 00:13:01,520 --> 00:13:04,719 Speaker 1: Charles Schwab, they say in the beginning, this is a 236 00:13:05,320 --> 00:13:08,240 Speaker 1: this is a scary thing you're buying, Mr. Are you sure? 237 00:13:08,320 --> 00:13:11,640 Speaker 1: You honestly and you're like yes, yes, yes. Three times 238 00:13:12,120 --> 00:13:14,240 Speaker 1: you have to say I want to commit suicide. I 239 00:13:14,520 --> 00:13:17,400 Speaker 1: really want to commit suicide. Yes, I'm gonna jump off 240 00:13:17,480 --> 00:13:20,680 Speaker 1: this bridge. So but they warn you that's how crazy 241 00:13:20,720 --> 00:13:23,839 Speaker 1: you do is. So let's uh forget t VIX and 242 00:13:23,880 --> 00:13:26,720 Speaker 1: just talk E t F It seems like a great concept, 243 00:13:27,200 --> 00:13:30,480 Speaker 1: the way they combine, like a country, you know, Vietnam 244 00:13:30,760 --> 00:13:34,760 Speaker 1: et f UM, I mean all of like diversification, we 245 00:13:34,800 --> 00:13:37,640 Speaker 1: get all thirty stocks at once. Do you step back everyone, 246 00:13:37,679 --> 00:13:40,360 Speaker 1: look at your portfolio and say, you know, I mean 247 00:13:40,400 --> 00:13:42,800 Speaker 1: this much in equities and this much in bonds or 248 00:13:43,040 --> 00:13:47,440 Speaker 1: are you just playing it based on on feel the ladder? 249 00:13:47,679 --> 00:13:50,160 Speaker 1: And you don't have an advisor? Do you? No? Any 250 00:13:50,240 --> 00:13:53,959 Speaker 1: time I ever had an advisor, I got killed, including 251 00:13:54,040 --> 00:13:57,760 Speaker 1: that first time. Yeah, the first time. Yeah, I've had 252 00:13:57,920 --> 00:13:59,719 Speaker 1: bad taste, I've had two or three and then my 253 00:14:00,280 --> 00:14:03,120 Speaker 1: my only son told me to buy t VIX just kidding. 254 00:14:06,280 --> 00:14:10,240 Speaker 1: Uh yeah, that's for letting me go sledding backwards downhill. 255 00:14:10,240 --> 00:14:12,400 Speaker 1: And when I hit the tree and almost died, I 256 00:14:12,559 --> 00:14:16,560 Speaker 1: remember even to get rid of the kids. One other 257 00:14:16,679 --> 00:14:18,600 Speaker 1: question I had, and because when I see my dad, 258 00:14:18,679 --> 00:14:21,320 Speaker 1: I sometimes recount my childhood in the eighties, and I 259 00:14:21,320 --> 00:14:24,760 Speaker 1: remember how much fun I had. And also, you know, 260 00:14:25,000 --> 00:14:26,800 Speaker 1: obviously we have a lot of eighty references. We have 261 00:14:26,840 --> 00:14:29,600 Speaker 1: a fond memories of that decade. When I work with 262 00:14:29,760 --> 00:14:32,160 Speaker 1: our rate strategist, Ira, you know, he'll show me a 263 00:14:32,240 --> 00:14:33,800 Speaker 1: chart of the ten year yield. I know where you're 264 00:14:33,800 --> 00:14:36,200 Speaker 1: going with this, Like it was. You know, it's a 265 00:14:36,280 --> 00:14:40,960 Speaker 1: different world right in the eighties, and we don't remember 266 00:14:41,080 --> 00:14:45,560 Speaker 1: we were kids running around watching yeah, playing outside. Uh 267 00:14:46,480 --> 00:14:49,520 Speaker 1: what was that like? Did you know how abnormal it was? 268 00:14:49,560 --> 00:14:51,800 Speaker 1: Because if you go back a hundred years, it was abnormal. 269 00:14:52,280 --> 00:14:53,800 Speaker 1: And what do you think of versus today? Is it 270 00:14:53,840 --> 00:14:56,280 Speaker 1: crazy you can't get more than say two or three 271 00:14:56,280 --> 00:15:00,520 Speaker 1: percent from a treasury bond by comparison you of course, 272 00:15:00,680 --> 00:15:04,080 Speaker 1: but back in that era, remember that was a double 273 00:15:04,160 --> 00:15:09,040 Speaker 1: edged sword. Everything was yielding and going up through the roof. 274 00:15:09,240 --> 00:15:11,400 Speaker 1: But so was interest rates. So if you had to 275 00:15:11,440 --> 00:15:14,880 Speaker 1: buy a house, you were commonly paying twelve percent for 276 00:15:14,960 --> 00:15:18,880 Speaker 1: your loan, even fourteen. And I had I've always worked 277 00:15:18,920 --> 00:15:23,600 Speaker 1: for companies owned by foreigners for some reason, and Arabs, 278 00:15:23,720 --> 00:15:27,480 Speaker 1: Germans and Englishmen, and they always said when that era came, 279 00:15:27,760 --> 00:15:30,720 Speaker 1: they said, Oh, America's finally catching up to the rest 280 00:15:30,760 --> 00:15:34,560 Speaker 1: of the world. That's reality. So where they were from 281 00:15:35,160 --> 00:15:39,320 Speaker 1: borrowing money was more than ten percent for a long time, 282 00:15:39,680 --> 00:15:43,000 Speaker 1: which you know, as Americans, we we we didn't know that. 283 00:15:43,080 --> 00:15:50,320 Speaker 1: I didn't know that. Some people call this bull market 284 00:15:50,400 --> 00:15:52,560 Speaker 1: the most hated bull market ever because the Fed got in. 285 00:15:52,920 --> 00:15:54,600 Speaker 1: People think it's a little bit set up from like 286 00:15:54,680 --> 00:15:58,200 Speaker 1: the Fed providing sugar to the market. Does this one 287 00:15:58,320 --> 00:16:02,160 Speaker 1: feel you know, stocks are up at two roughly? Does 288 00:16:02,240 --> 00:16:05,760 Speaker 1: this one feel less legitimate than say the eighties or 289 00:16:06,040 --> 00:16:07,840 Speaker 1: the two thousand or the you know nineties, to you know, 290 00:16:08,120 --> 00:16:14,600 Speaker 1: to me, yes, but only because I'm older, less optimistic, 291 00:16:15,320 --> 00:16:17,840 Speaker 1: been through some crashes, you know what I mean. It 292 00:16:17,960 --> 00:16:21,680 Speaker 1: just feels like this can't go on. So I'm curious, now, 293 00:16:21,760 --> 00:16:24,800 Speaker 1: how old are you can uh? Next birthday seventy So 294 00:16:25,440 --> 00:16:27,120 Speaker 1: when you look out over the next you know, a 295 00:16:27,160 --> 00:16:29,760 Speaker 1: couple of decades of your life, we hope. How are 296 00:16:29,800 --> 00:16:34,040 Speaker 1: you preparing for that? Financially? Just hoping to um break even. 297 00:16:34,760 --> 00:16:38,640 Speaker 1: And I don't care if I use up nest egg money, 298 00:16:38,840 --> 00:16:41,880 Speaker 1: you know, it's that's what it's for. Um. So I 299 00:16:42,000 --> 00:16:45,840 Speaker 1: feel like, as they say, where I come from, I'm 300 00:16:45,880 --> 00:16:50,560 Speaker 1: in tall cotton, tall cotton, all right, tall cotton with 301 00:16:51,400 --> 00:17:06,080 Speaker 1: the Kennecks creator. Well that was fun. Yeah, he is, 302 00:17:06,200 --> 00:17:09,400 Speaker 1: my dad is he is an amazing shirt collection because 303 00:17:09,440 --> 00:17:12,120 Speaker 1: that one that he has had on. So he's gone 304 00:17:12,160 --> 00:17:15,840 Speaker 1: full Floridian. Yeah, he likes his shirt. He's got quite 305 00:17:15,880 --> 00:17:17,840 Speaker 1: the life. He's retired, lives right at the beach on 306 00:17:17,880 --> 00:17:21,520 Speaker 1: the on the Panhandle, the Gulf Shore's White Sands, goes fishing, 307 00:17:22,000 --> 00:17:26,159 Speaker 1: watches football, bets on football plays. Yeah, he's got you know, 308 00:17:26,359 --> 00:17:29,240 Speaker 1: dabbles in the market with some power tools. Uh, you know, 309 00:17:29,400 --> 00:17:32,560 Speaker 1: he could be doing worse. It's a good little life. Yeah. Okay, 310 00:17:32,600 --> 00:17:35,280 Speaker 1: So from Florida's Panhandle, we're going to transition to West 311 00:17:35,359 --> 00:17:38,680 Speaker 1: coast Oregon, where my dad's visiting from. So you know 312 00:17:39,200 --> 00:17:42,159 Speaker 1: they call that the panhandle l A, Lower Alabama. So 313 00:17:42,640 --> 00:17:46,640 Speaker 1: from from l A to Oregon to the woods. Yeah, 314 00:17:46,840 --> 00:17:49,320 Speaker 1: what a swing. Yeah, so this is and it speaks 315 00:17:49,359 --> 00:17:52,560 Speaker 1: to Yin and yang like these guys really couldn't be 316 00:17:52,680 --> 00:17:56,600 Speaker 1: more different from an investing standpoint. Yeah, absolutely, Um, and 317 00:17:56,760 --> 00:17:58,600 Speaker 1: I was you know, when I think of someone from Oregon, 318 00:17:58,640 --> 00:18:01,879 Speaker 1: I guess I just picture fed Armison from Portland. You 319 00:18:01,960 --> 00:18:04,040 Speaker 1: did not get that? Yeah, I did not get that. 320 00:18:04,200 --> 00:18:07,720 Speaker 1: Your dad very professional, carries himself very well as a doctor, 321 00:18:08,600 --> 00:18:12,680 Speaker 1: really um retired doctor, right, and uh you know, has 322 00:18:12,720 --> 00:18:15,399 Speaker 1: a really nice disposition. It's kind of like you in 323 00:18:15,480 --> 00:18:21,240 Speaker 1: a way. Well, thank you. Erica brought my dad and 324 00:18:22,400 --> 00:18:24,240 Speaker 1: I got a chance to talk to him before we started, 325 00:18:24,359 --> 00:18:27,000 Speaker 1: uh of taving here, and it seems like a nice guy. 326 00:18:27,160 --> 00:18:33,000 Speaker 1: Welcome from Portland wherever I'm from, right outside of Portland. 327 00:18:33,440 --> 00:18:36,119 Speaker 1: So I've been up close and personal with Larry for 328 00:18:36,200 --> 00:18:38,359 Speaker 1: a really long time and know a little bit about 329 00:18:38,440 --> 00:18:41,520 Speaker 1: how are you? It sounds really weird. That's a little 330 00:18:41,600 --> 00:18:46,400 Speaker 1: too professional for I've I've interviewed Larry several times before. 331 00:18:47,480 --> 00:18:51,040 Speaker 1: It's true. Um, okay, so Dad, you've been a d 332 00:18:51,280 --> 00:18:55,879 Speaker 1: I Y investor for decades now, sinstmid eighties. Excellent. What 333 00:18:56,080 --> 00:19:00,560 Speaker 1: was that impetus for that? How did you get into it? Um? Well, 334 00:19:00,600 --> 00:19:03,560 Speaker 1: actually it had to do with your grandfather. He had 335 00:19:03,600 --> 00:19:05,600 Speaker 1: a bunch of investing books that were at the time 336 00:19:05,640 --> 00:19:10,600 Speaker 1: put out by US News and UH and World reports 337 00:19:10,680 --> 00:19:13,560 Speaker 1: at the time, and he himself was a little bit 338 00:19:13,640 --> 00:19:17,680 Speaker 1: of a play investor. He was basically a fairly successful 339 00:19:17,760 --> 00:19:22,600 Speaker 1: businessman in auto My mom's dad right, right. And so 340 00:19:22,880 --> 00:19:26,120 Speaker 1: when I went to medical school in Portland's uh there 341 00:19:26,160 --> 00:19:29,760 Speaker 1: I was. He had this little funky library that UH 342 00:19:30,440 --> 00:19:33,119 Speaker 1: and he'd supply the drinks and we'd go over Friday 343 00:19:33,240 --> 00:19:36,040 Speaker 1: night and we'd get the book that I would read. 344 00:19:36,080 --> 00:19:39,720 Speaker 1: And so that led to some accumulation of money that 345 00:19:39,840 --> 00:19:41,159 Speaker 1: then what do you do with it? And that was 346 00:19:41,240 --> 00:19:44,280 Speaker 1: a time when the money markets were just hitting and 347 00:19:44,520 --> 00:19:48,480 Speaker 1: so that was pretty good. High interest was ruling the 348 00:19:48,640 --> 00:19:50,600 Speaker 1: day at that point in time, so you could actually 349 00:19:50,640 --> 00:19:53,600 Speaker 1: make some money with just cash put away. One thing 350 00:19:53,720 --> 00:19:56,800 Speaker 1: led to another, and then I began taking newsletters and 351 00:19:56,920 --> 00:20:01,240 Speaker 1: buying what some guru was telling me to buy, and 352 00:20:01,400 --> 00:20:04,760 Speaker 1: that ended up being a mixed bag, which is funny. 353 00:20:04,800 --> 00:20:09,280 Speaker 1: I remember value line was always around, which value line 354 00:20:09,680 --> 00:20:14,800 Speaker 1: is a UH subscription h newsletter in print and it 355 00:20:14,920 --> 00:20:16,920 Speaker 1: has all kinds. At the time, it was just stock 356 00:20:16,960 --> 00:20:19,399 Speaker 1: stock stock stock stock, Well, it's it still goes. And 357 00:20:19,560 --> 00:20:22,880 Speaker 1: actually that's what I ended up taking because I felt 358 00:20:22,920 --> 00:20:26,320 Speaker 1: like you could rely upon it. It's basically they take 359 00:20:26,400 --> 00:20:32,960 Speaker 1: sevent companies that are big companies, well diversified portfolio of it, 360 00:20:33,160 --> 00:20:36,280 Speaker 1: and then once a week, so thirteen weeks, they just 361 00:20:36,359 --> 00:20:39,600 Speaker 1: kind of rotate through different industries talking about these sevent 362 00:20:39,840 --> 00:20:44,720 Speaker 1: hundred countries companies. But I took a couple of newsletters 363 00:20:44,800 --> 00:20:49,000 Speaker 1: before that that sort of led me to realize that 364 00:20:50,119 --> 00:20:54,240 Speaker 1: advice was advice and not necessarily successful. So me, my 365 00:20:54,320 --> 00:20:56,879 Speaker 1: friend Eric, that's a good second. Well, it's funny you 366 00:20:56,920 --> 00:20:59,240 Speaker 1: say value line. There's actually a couple of value line 367 00:20:59,280 --> 00:21:02,840 Speaker 1: ets at least one, and they do exactly that, and 368 00:21:02,960 --> 00:21:05,240 Speaker 1: you just buy and you own all value line picks. 369 00:21:05,480 --> 00:21:08,560 Speaker 1: I'm curious, though, in any of these listic to value lines. 370 00:21:08,920 --> 00:21:11,639 Speaker 1: When you said some worked out mixed bag um, how 371 00:21:11,720 --> 00:21:14,840 Speaker 1: long did you typically hold the stocks before you gave 372 00:21:14,920 --> 00:21:18,240 Speaker 1: up on them? How is that like uh period? As 373 00:21:18,280 --> 00:21:20,760 Speaker 1: you well know, following stocks and stuff like that can 374 00:21:21,160 --> 00:21:25,399 Speaker 1: it's just consumptive and the market is very unforgiving. And 375 00:21:25,720 --> 00:21:29,040 Speaker 1: so I realized that the more I could distance myself 376 00:21:29,359 --> 00:21:32,399 Speaker 1: from the market and the activity in the market and 377 00:21:32,480 --> 00:21:35,720 Speaker 1: go with the so called blue chips and stuff that 378 00:21:35,840 --> 00:21:38,479 Speaker 1: have a mixed bag of success if you look at 379 00:21:38,560 --> 00:21:41,120 Speaker 1: them over decades and stuff like that. They were sort 380 00:21:41,160 --> 00:21:44,440 Speaker 1: of long term buy and holds for the most part. 381 00:21:45,000 --> 00:21:49,040 Speaker 1: So there's been years where I've had like turnover most 382 00:21:49,200 --> 00:21:52,440 Speaker 1: years it's about five to ten twelve percent turnover. And 383 00:21:52,920 --> 00:21:55,119 Speaker 1: were you buying because in the eighties is when mutual 384 00:21:55,160 --> 00:21:58,520 Speaker 1: funds became popular. Were you buying those in addition to 385 00:21:58,640 --> 00:22:00,320 Speaker 1: this sort of like because you it's was like you 386 00:22:00,359 --> 00:22:02,239 Speaker 1: were running your ow mutual fund in a way. Were 387 00:22:02,280 --> 00:22:04,679 Speaker 1: you also owning mutual funds like in a retirement account 388 00:22:04,880 --> 00:22:08,440 Speaker 1: as well or just doing this? No, Actually, it's interesting 389 00:22:08,560 --> 00:22:12,920 Speaker 1: because I uh started buying mutual funds, and believe me, 390 00:22:13,040 --> 00:22:14,800 Speaker 1: I didn't know the difference between a stock and a 391 00:22:14,880 --> 00:22:19,360 Speaker 1: bond for the most part. I began buying individual stocks 392 00:22:19,960 --> 00:22:24,320 Speaker 1: and putting money into Dodging Cox Stock Fund and a 393 00:22:24,400 --> 00:22:27,800 Speaker 1: couple of other mutual funds and just letting them grow 394 00:22:28,160 --> 00:22:31,600 Speaker 1: just to see how's it gonna go. Because this was 395 00:22:31,720 --> 00:22:34,800 Speaker 1: really my way of gambling. I'm not much of a gambler. 396 00:22:34,880 --> 00:22:38,440 Speaker 1: When I go to Vegas, areno you know, I would 397 00:22:38,480 --> 00:22:40,639 Speaker 1: give myself two hundred bucks and when I ran out 398 00:22:40,640 --> 00:22:42,600 Speaker 1: of two hundred bucks, you know, that was the end 399 00:22:42,640 --> 00:22:45,680 Speaker 1: of the night. And that's my gambling history. And the 400 00:22:45,760 --> 00:22:51,640 Speaker 1: one thing I had learned in medicine never confused luck 401 00:22:51,920 --> 00:22:56,000 Speaker 1: with skill. It's a good, good lesson in medicine especially. 402 00:22:56,040 --> 00:22:59,080 Speaker 1: I guess, well, it's a good lessons and investing too. 403 00:22:59,640 --> 00:23:02,120 Speaker 1: What about is it better to be lucky than good? Yeah? 404 00:23:02,640 --> 00:23:07,600 Speaker 1: Absolutely absolutely. You have to understand that luck is luck 405 00:23:07,840 --> 00:23:12,040 Speaker 1: and skill is skill, um, and that's been always the 406 00:23:12,280 --> 00:23:16,760 Speaker 1: challenge to balance those. So you were effectively a stock 407 00:23:16,840 --> 00:23:19,359 Speaker 1: picker right for a long time. And then the mutual 408 00:23:19,440 --> 00:23:21,920 Speaker 1: fund phenomenon caught on, and you know that, I think 409 00:23:22,080 --> 00:23:24,199 Speaker 1: is a lot of what you taught me growing up. 410 00:23:24,520 --> 00:23:27,840 Speaker 1: So I'm really interested in how you use E T s. 411 00:23:28,480 --> 00:23:32,879 Speaker 1: How did that start to enter your investing flash I was, 412 00:23:33,040 --> 00:23:37,240 Speaker 1: I was probably fifty fifty on mutual funds versus individual stocks. 413 00:23:37,760 --> 00:23:41,000 Speaker 1: And then when I had two kids, Joel being one, 414 00:23:41,400 --> 00:23:44,040 Speaker 1: I would put some money away for college growth into 415 00:23:44,160 --> 00:23:47,440 Speaker 1: mutual funds and I used that as everything because et 416 00:23:47,600 --> 00:23:51,119 Speaker 1: f s had not come along. And then fast forward 417 00:23:51,160 --> 00:23:54,480 Speaker 1: to all this kind of stuff, and the work coming 418 00:23:54,520 --> 00:23:59,560 Speaker 1: out of Vanguard was pretty impressive, not dramatically, so but 419 00:23:59,720 --> 00:24:02,320 Speaker 1: you know you're picking up one or two percent just 420 00:24:02,480 --> 00:24:05,119 Speaker 1: because the overhead is less with E t f s. 421 00:24:05,200 --> 00:24:08,240 Speaker 1: And so I I sort of sit back on the 422 00:24:08,320 --> 00:24:11,960 Speaker 1: sidelines for two or three years looking about it, scratching 423 00:24:12,040 --> 00:24:14,800 Speaker 1: my head because Wall Street comes up with all kinds 424 00:24:14,840 --> 00:24:17,760 Speaker 1: of new ways to make money. And this is when 425 00:24:17,880 --> 00:24:23,000 Speaker 1: like in the utts, Yeah, yeah, so this is eighteen 426 00:24:24,160 --> 00:24:27,119 Speaker 1: probably I just sit there and watched, and then of course, 427 00:24:27,800 --> 00:24:30,240 Speaker 1: oh eight came along and everything went like, you know, 428 00:24:30,400 --> 00:24:32,440 Speaker 1: you just didn't even want to look at your portfolio. 429 00:24:32,680 --> 00:24:34,440 Speaker 1: It was sort of like, just have a cup of 430 00:24:34,480 --> 00:24:37,080 Speaker 1: coffee and enjoy the day and smile, because it's not 431 00:24:37,320 --> 00:24:40,040 Speaker 1: what you want to do is look up how bad 432 00:24:40,160 --> 00:24:43,520 Speaker 1: things were going. And then coming out of that, I 433 00:24:43,640 --> 00:24:46,280 Speaker 1: began to diversify into E t f s just because 434 00:24:46,320 --> 00:24:51,879 Speaker 1: of their low overhead, uh, their sector emphasis, and it 435 00:24:52,040 --> 00:24:55,840 Speaker 1: seemed like another way to basically diversify what I had. 436 00:24:58,920 --> 00:25:02,520 Speaker 1: So you have an E t F portfolio right now, 437 00:25:02,920 --> 00:25:05,320 Speaker 1: what's interesting about it? I looked at the tickers. I 438 00:25:05,400 --> 00:25:08,679 Speaker 1: sent Eric the tickers. There's a dozen or so, right, 439 00:25:09,400 --> 00:25:13,080 Speaker 1: and I'm curious, a what platform you're using? And then 440 00:25:13,359 --> 00:25:15,760 Speaker 1: be like, do you even know what these tickers are. 441 00:25:15,880 --> 00:25:18,119 Speaker 1: Do you know what you're holding? Yeah? Yeah, I have 442 00:25:18,240 --> 00:25:21,800 Speaker 1: them down on it a spreadsheet, and um I ended 443 00:25:21,880 --> 00:25:26,399 Speaker 1: up currently with E t F platform in both Fidelity, 444 00:25:27,080 --> 00:25:31,560 Speaker 1: Schwab and more recently Vanguard. So it's interesting because those 445 00:25:31,600 --> 00:25:34,560 Speaker 1: are the three three of the biggest E t F 446 00:25:34,640 --> 00:25:38,240 Speaker 1: trading platforms. And Fidelity has ey shares trading for free, 447 00:25:38,320 --> 00:25:41,920 Speaker 1: Vanguards now all for free, and Schwab is I have 448 00:25:42,000 --> 00:25:43,359 Speaker 1: to look at the numbers, it's probably one of the 449 00:25:43,400 --> 00:25:46,320 Speaker 1: most popular. And I'm looking here at your tickers. I 450 00:25:46,400 --> 00:25:49,440 Speaker 1: can see some Schwab ETFs on here. And honestly, if 451 00:25:49,480 --> 00:25:51,560 Speaker 1: your goal is low overhead, you pick the right ones 452 00:25:51,640 --> 00:25:55,520 Speaker 1: because I mean s c H A, s c H P, 453 00:25:55,840 --> 00:25:59,000 Speaker 1: s c H these are all the cheapest or within 454 00:25:59,040 --> 00:26:01,200 Speaker 1: a basis point of the cheapest in the category. And 455 00:26:01,240 --> 00:26:02,600 Speaker 1: if you're the cheapest in E t F to, you're 456 00:26:02,600 --> 00:26:05,680 Speaker 1: the cheapest overall. So I mean, and you even have 457 00:26:05,880 --> 00:26:08,080 Speaker 1: fn d E and f n d X, which are 458 00:26:08,680 --> 00:26:13,720 Speaker 1: Schwab's fundamental so it's cheap active. I mean, it's it's 459 00:26:13,760 --> 00:26:16,720 Speaker 1: like basically, but it's you know, the rebalance has happened. 460 00:26:16,920 --> 00:26:20,520 Speaker 1: It's more systematic than a discretionary active manager. But this 461 00:26:20,800 --> 00:26:23,359 Speaker 1: is low overhead is what you're looking for. You got it, 462 00:26:23,359 --> 00:26:25,960 Speaker 1: And a lot of people would argue that is a 463 00:26:26,320 --> 00:26:31,000 Speaker 1: good idea because if costs are the biggest predictor of performance, um, 464 00:26:31,400 --> 00:26:33,439 Speaker 1: you know, you've eliminated almost all the costs and if 465 00:26:33,440 --> 00:26:36,000 Speaker 1: you're buying them on Schwab, you're not really paying much 466 00:26:36,040 --> 00:26:38,719 Speaker 1: to trade them. But I mean, these look like products 467 00:26:38,760 --> 00:26:41,159 Speaker 1: you're not going to trade. These look much more like 468 00:26:41,240 --> 00:26:44,640 Speaker 1: a portfolio. Yeah, absolutely, Like I don't really I don't 469 00:26:44,680 --> 00:26:46,960 Speaker 1: see anything like um, I don't know, like the internet 470 00:26:47,000 --> 00:26:51,640 Speaker 1: et F. Definitely no t vix on here. Uh yeah 471 00:26:53,040 --> 00:26:55,560 Speaker 1: every night and I yeah, and I don't think about it. 472 00:26:55,680 --> 00:26:57,840 Speaker 1: This is the peace of mind portfolio right here. So, 473 00:26:58,200 --> 00:27:00,600 Speaker 1: because you've always been such a long term investor, I'm 474 00:27:00,640 --> 00:27:04,000 Speaker 1: curious how you dealt with there's been a lot, there's 475 00:27:04,040 --> 00:27:06,440 Speaker 1: been a route lately, right, So how much were you 476 00:27:07,080 --> 00:27:11,080 Speaker 1: looking at that route while it was happening, and how 477 00:27:11,160 --> 00:27:12,960 Speaker 1: did you prepare for it and how have you reacted 478 00:27:13,000 --> 00:27:14,960 Speaker 1: to it? Since it's funny that you brought up the 479 00:27:15,000 --> 00:27:18,200 Speaker 1: fundamental um E t F that I've gotten into. Those 480 00:27:18,320 --> 00:27:22,119 Speaker 1: came about a little bit early here. Just if you 481 00:27:22,280 --> 00:27:27,200 Speaker 1: look at the makeup of everybody can buy mitual fund, 482 00:27:27,240 --> 00:27:29,560 Speaker 1: everybody can buy an e t F but really what 483 00:27:29,880 --> 00:27:34,159 Speaker 1: matters about those is there their investments and what are 484 00:27:34,200 --> 00:27:38,280 Speaker 1: they investing in. And the nastac is, you know it's 485 00:27:38,560 --> 00:27:44,600 Speaker 1: pretty tech oriented, Uh, pretty high p s, lots of growth. 486 00:27:44,760 --> 00:27:48,480 Speaker 1: Everybody loves that. You've got to be aware of what 487 00:27:48,640 --> 00:27:51,159 Speaker 1: a PE means. I mean if they cut, if the 488 00:27:51,240 --> 00:27:53,960 Speaker 1: market cuts your pe and half, you just lost half. 489 00:27:54,359 --> 00:27:58,399 Speaker 1: Period being in e t f s, you are the market. 490 00:27:59,160 --> 00:28:03,879 Speaker 1: There's no body advising and no, you've just bought into 491 00:28:04,160 --> 00:28:07,200 Speaker 1: some index that's just gonna go where the market goes. 492 00:28:07,359 --> 00:28:11,320 Speaker 1: So you are the market. So whatever happens in the market, 493 00:28:11,400 --> 00:28:13,760 Speaker 1: you're gonna get it right smack dab in your face. 494 00:28:13,840 --> 00:28:15,560 Speaker 1: And there's not going to be an exit plan as 495 00:28:15,760 --> 00:28:18,800 Speaker 1: as two thousand and eight showed. You know so, Um, 496 00:28:19,359 --> 00:28:23,560 Speaker 1: it's long term buy and hold. And although the fundamental 497 00:28:23,840 --> 00:28:27,880 Speaker 1: um there, those are ones that will let's say there's 498 00:28:27,880 --> 00:28:31,159 Speaker 1: a big sell off and um, a certain sector like 499 00:28:31,480 --> 00:28:34,240 Speaker 1: tech looks cheaper, they may add a little tech in 500 00:28:34,280 --> 00:28:38,120 Speaker 1: the next rebalance. Um, you know so, but at the 501 00:28:38,160 --> 00:28:40,200 Speaker 1: time the sell off, whatever is in there is just 502 00:28:40,320 --> 00:28:43,600 Speaker 1: gonna happen. There's not somebody trading around the sell off 503 00:28:43,680 --> 00:28:47,240 Speaker 1: that day. Right now, when I think of baby boomers 504 00:28:47,760 --> 00:28:51,360 Speaker 1: and your your generation, I think of them wanting income, 505 00:28:51,440 --> 00:28:53,960 Speaker 1: you know, right right, Rachel, what do you do for that? 506 00:28:54,400 --> 00:28:56,520 Speaker 1: Have you worked to try to get that steady income 507 00:28:56,600 --> 00:28:58,240 Speaker 1: or you're you're not really You just look at the market, 508 00:28:58,240 --> 00:29:01,360 Speaker 1: your portfolio going up as all the income you need? Well, uh, no, 509 00:29:01,960 --> 00:29:06,120 Speaker 1: not at all. Actually, Uh what I've done is I 510 00:29:06,520 --> 00:29:09,160 Speaker 1: worked as a physician up until about a year and 511 00:29:09,240 --> 00:29:12,560 Speaker 1: a half ago. But up to that time, you know, 512 00:29:12,720 --> 00:29:15,720 Speaker 1: I just lived off of my income and invested. But 513 00:29:16,200 --> 00:29:20,000 Speaker 1: since that time, I've had to realize that retirements coming, 514 00:29:20,440 --> 00:29:23,040 Speaker 1: the paycheck went away. What do you do? And so 515 00:29:23,840 --> 00:29:27,520 Speaker 1: I have a big cash kettle that is going to 516 00:29:27,760 --> 00:29:31,440 Speaker 1: take care of me. I have on an Excel sheet 517 00:29:31,600 --> 00:29:34,680 Speaker 1: figured out exactly how much I spanned every month. It 518 00:29:34,800 --> 00:29:38,000 Speaker 1: all gets categorized, so I have, you know, twenty different 519 00:29:38,040 --> 00:29:41,680 Speaker 1: categories and know where the money goes. And it's typically 520 00:29:41,840 --> 00:29:46,240 Speaker 1: Larry Webber. It's a very calculated, mathematical approach to it. Yeah, 521 00:29:46,320 --> 00:29:50,800 Speaker 1: that's impressive. I'm I'm not good at that. Oh I 522 00:29:51,440 --> 00:29:53,560 Speaker 1: was forced to it. I was forced into it. I 523 00:29:53,680 --> 00:29:55,600 Speaker 1: didn't do it during my life. It was like, I 524 00:29:55,640 --> 00:29:58,240 Speaker 1: don't even know where my money goes. My wife is 525 00:29:58,280 --> 00:30:01,680 Speaker 1: more she I think she actually enjoys keeping those tabs, 526 00:30:01,760 --> 00:30:03,840 Speaker 1: and I guess I've I've been lazy because she sort 527 00:30:03,840 --> 00:30:05,840 Speaker 1: of takes all that up. But it's really good to 528 00:30:05,920 --> 00:30:08,400 Speaker 1: do that. A lot of people who do invest thing 529 00:30:08,600 --> 00:30:11,360 Speaker 1: on Twitter, they will remind you that it's really how 530 00:30:11,440 --> 00:30:13,800 Speaker 1: much you save and your budget that ultimately is way 531 00:30:13,840 --> 00:30:17,520 Speaker 1: more important than the market returns and Whatnotloever, thank you 532 00:30:17,560 --> 00:30:28,400 Speaker 1: so much for joining us. Great to meet you. We 533 00:30:28,520 --> 00:30:31,560 Speaker 1: just had too totally different perspective. What did you learn? Um? 534 00:30:31,680 --> 00:30:33,680 Speaker 1: I learned which is something I hear more and more about, 535 00:30:33,720 --> 00:30:37,000 Speaker 1: which is, you know, investment has to be right for you. 536 00:30:37,440 --> 00:30:40,320 Speaker 1: It's there's not one size fits all. And what your 537 00:30:40,360 --> 00:30:43,320 Speaker 1: personality maybe one that wants to take more chances, and 538 00:30:43,400 --> 00:30:45,360 Speaker 1: there's and their personality maybe one that wants to take 539 00:30:45,400 --> 00:30:47,400 Speaker 1: less chances. So you have to find the right shoe 540 00:30:47,480 --> 00:30:49,920 Speaker 1: that fits. And I think they both did that. They've 541 00:30:49,920 --> 00:30:52,600 Speaker 1: worn some different shoes, yeah, every time. But that's the 542 00:30:52,600 --> 00:30:56,520 Speaker 1: other thing. Over time, they learned by doing. Obviously they read, 543 00:30:56,560 --> 00:30:58,400 Speaker 1: but they also just learned by doing and that to 544 00:30:58,560 --> 00:31:02,920 Speaker 1: me is the best teacher in life is experience. The 545 00:31:03,000 --> 00:31:05,760 Speaker 1: best teacher in life is experience. If you heard it 546 00:31:05,800 --> 00:31:09,000 Speaker 1: from Marrick Baltuna, you like that. It's it's been Franklin 547 00:31:09,040 --> 00:31:11,480 Speaker 1: asked for somebody from Philly. He probably said it. He 548 00:31:11,520 --> 00:31:14,320 Speaker 1: said everything, but I didn't think of that, so he 549 00:31:14,400 --> 00:31:21,800 Speaker 1: came out channel. Thanks for listening to jog Until next time. 550 00:31:21,960 --> 00:31:24,760 Speaker 1: You can find us on the Bloomberg terminal, Bloomberg dot com, 551 00:31:25,280 --> 00:31:28,560 Speaker 1: Apple Podcasts, and whatever else you want to listen. We'd 552 00:31:28,560 --> 00:31:30,560 Speaker 1: love to hear from you. We're on Twitter, well some 553 00:31:30,720 --> 00:31:33,040 Speaker 1: of us, Cannon, Larry are, but Eric and I are. 554 00:31:33,520 --> 00:31:38,560 Speaker 1: I'm at Joel Webber Shows, He's at Eric Baltunas. Trillions 555 00:31:38,680 --> 00:31:41,960 Speaker 1: is produced by Magnus Hendrickson for Jessica Leedy is the 556 00:31:42,000 --> 00:31:44,480 Speaker 1: head of Bloomberg podcast. Bye