Sept. 3, 2024

Why Wealth Management Without Meaning Is Meaningless: Crafting a Purpose-Driven Financial Plan

Why Wealth Management Without Meaning Is Meaningless: Crafting a Purpose-Driven Financial Plan

Are you tired of financial advice about numbers and figures but never addressing the bigger picture? What if your financial plan could be more than just a spreadsheet—it could be a story that drives your life forward?
In this episode, Divya Parekh...

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Are you tired of financial advice about numbers and figures but never addressing the bigger picture? What if your financial plan could be more than just a spreadsheet—it could be a story that drives your life forward?
In this episode, Divya Parekh sits down with Michael Cannivet, CFA, the founder and president of Silverlight Asset Management, LLC, to explore why wealth management without meaning is truly meaningless.

Beyond Confidence is broadcast live Tuesdays at 10AM ET on W4WN Radio - Women 4 Women Network (www.w4wn.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Beyond Confidence TV Show is viewed on Talk 4 TV (www.talk4tv.com).

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The topics and opinions expressed on the following show are

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This is Beyond Confidence with your host w park. Do

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you want to live a more fulfilling life? Do you

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want to live your legacy and achieve your personal, professional,

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and financial goals? Well? Coming up on dvparks Beyond Confidence,

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you will hear real stories of leaders, entrepreneurs, and achievers

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who have stepped into discomfort, shattered their status quo, and

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are living the life they want. You will learn how

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relationships are the key to achieving your aspirations and financial goals.

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Moving your career business forward does not have to happen

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at the expense of your personal or family life or

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vice versa. Learn more at WWWA. You don't divpark dot

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com and you can connect with div at contact ant

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divpark dot com. This is beyond confidence and now here's

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your host, div Park.

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Good morning listeners, so thrilled to be here with you.

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And today I've got a fascinating story about kindness. Veronica

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of one of our audiences and out that she had

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been helping out homeless people and she was born out

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and then she was sitting down with one of her

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friends and they told her that you're extending kindness to

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all these people, how about yourself? And then she said

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that that she decided to take a break and from

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all her kindness activities and be kind to herself. And

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it's such an important concept, and actually I learned from her.

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So usually I don't know about you, but I see

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myself as the last person that I pay attention to.

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It it's always about clients, it's always about the people.

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So this weekend I gave myself for those of self kindness.

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And I gotta tell you it's nice because when you're

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kind to yourself, you have more energy and you can

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give more kindness and energy to others. So it's something

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for you to ponder over. And for those of you

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who have got our books, either one of them or

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any of our fourteen fifteen books that we have written.

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The Entrepreneur's Gotten or expert to influencer. It's going to

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give you the life you deserve and position yourself for

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the meaningful impact that you deserve to deliver. Because as

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human beings, it's our responsibility not only to live happy

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lives for ourselves, but to deliver impact as well. So

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it's important that we help others as we help ourselves.

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So get our books if you have none, and I

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want to thank you each and every one of you

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who have got our books. So let's welcome our guest.

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Welcome Michael, thanks for having me.

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Absolutely so, we always begin with the childhood, and that's

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all of us begin our lives. So do you recall

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a moment or a person that even stands out for

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you today who had left a positive mark on you

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and your childhood?

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Oh, certainly there's two people really to my grandparents, my

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grandpa and grandma. They were huge influences in my life

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early on. I think they taught me my first lessons

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about money management. For instance, my grandmother, when I was

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really little, we played this game every time.

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We go to lunch.

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It seemed she'd tell me to have this, saying, I

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want to increase my vocabulary so that I may speak

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more intelligently. I was saying this was like five or

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six years old, seven years old, and then over the

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years she would teach me new terms, you know, to

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increase my vocabulary, and a lot of them were financial related.

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So looking back, I learned how to talk about the

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very basic nature of stocks and bonds when I was

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seven or eight years old, and those planted the seeds

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that made me a money manager later on in life,

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because I was never intimidated about financial finance or any

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of those issues. And then my grandfather too, He taught

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me a lot of financial lessons later in my life.

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For instance, when it was time to get my first car,

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you know, he didn't want me to take out a

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loan and pay interest, so he gave me the loan

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interest free, so I paid him back. He helped me

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with college, and he was just a very disciplined man

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who lived a life that I wanted to embody in

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my own ways as I grew older, because I felt

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like he did it right. He had a lot of

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friends and was always just He just seemed to have

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a very good sense of who he was and who

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he wanted to be, and he lived that in his

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financial life and his personal life. So I still think

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of about.

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Them a lot.

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I wrote about them in my book, and I think

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they're an inspiration to even this day.

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When they're not here anymore.

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That is fantastic. And so many nuclear families, as they're happening,

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what happens is that we lose touch with our families,

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and so many times people move away. But it's important

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to remember that how important that family is. Because your

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story is so powerful. Your grandparents decided the course of

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your career and your life. And as you said that,

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by the time you were just seventy eight years old,

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you're so comfortable with it. So tell me as you

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grew up, did you have any other interest or was

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finances your interest from the beginning?

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Yeah, So when I was around seven or eight, I

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also became interested in something called baseball cards. This was

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back in the nineteen eighties I grew up in and

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back then baseball cards were very popular and I discoveraged

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they were awesome, and I think I looked at them

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like stocks early on, because there's this thing called the

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Beckett Price Guide that would come in the mail every month,

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every day of the month when my Beckett Price Guy

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would arrive, because it would tell you, like all the

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prices of the cards, and there were little arrows up

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and down if they went up or down in value

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from the previous month. So I was just fascinated by that,

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and I think combining my grandparents' inspiration with that hobby

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that really like planted the seeds even further for me

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to become an investor later.

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In my life.

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Fast forward to college when I was in between my

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junior and senior year. I was actually a government major

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at Georgetown University. I thought maybe I'd want to be

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a lawyer or work on Capitol Hill or something like that.

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But then I got this internship opportunity of venture capital

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firm in Boston, and that summer changed my life because

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I kind of rediscovered what I really liked about investing

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in baseball cards. I just realized you could do it

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in terms of companies, and so I became really fascinated

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at that point with investing and decided to pursue that

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for my career.

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And Synvia going to tackle You're going to get into

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the financials and we will be tackling for entrepreneurs, for

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professionals and anyone, because usually most people are doing some

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form of a job or something. So, as you continued,

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where did your career take you?

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Sure?

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So I graduated just as the tech bubble was blowing

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up in two thousand and one, so it was really

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hard to find the kind of job I wanted. The

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venture capital firm that I had worked at previously wasn't hiring.

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Most of the major banks, and good jobs on Wall

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Street were hard to find because there were a lot

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of hiring freezes. So I had to a kind of

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bob and we First I worked at a bank for

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a little while, and then I got, as the market

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got a little better, an opportunity to go to Fisher Investments.

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They're the biggest registered investment advisory firm in the US.

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And I got to work for Ken Fisher, who's a

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billionaire founder under a brilliant market mind, also a wonderful person.

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And that's where like I really kind of learned my

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craft in a professional sense. I was an equity analyst

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there and I had a good run. Later on, I

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left because I always kind of wanted to be an entrepreneur.

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I think.

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So let's kind of touch upon when you mentioned that

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you were equity analyst, So can you share with our

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audience what does an equity.

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Analyst Sure, So you're basically a research analyst and you're

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assigned to certain companies, usually within a specific coverage area.

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So I had three different sectors that I covered, So

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my job was to become an expert on what makes

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those sectors go up and down in terms of the

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business cycle and then the investment cycles that follow that.

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And so I covered you know, about around fifty stocks

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or so at a given point in time, and my

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job was to make buying cell recommendations. I didn't get

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the final say, the portfolio managers did, but I was

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a support person for those decision makers. And I also

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got to travel around the country, which was really neat

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because I got to do investment roundtable meetings when I

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was an analyst, so I had some client interaction and

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that was really key for me actually looking back, because

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at the time I was doing that, two thousand and

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eight came along, of course, the great financial crisis that

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most people remember if they were an adult through that period,

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and so you know, going to do those meetings around

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the country and that turbulent market climate. It kind of

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just reinforced a lesson I started to learn at the

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front edge of my career, which you know when the

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tech bubble burst is when I was just getting into finance,

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and then a few years in I had the Great

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Financial Crisis to deal with, and interacting with the clients

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and seeing how stressful that was for them because almost

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everything struggled that year unless you were one hundred percent

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in cash. I had a lot of empathy for the clients,

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and it kind of reinforced in my own mind that

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if the there's one thing I want to be good

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at as an equity manager, it's doing well in bear markets.

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That just seems like crunch time in the market. It's

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like almost like in basketball. A lot of times the

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games decided in the fourth quarter. That's when the clutch

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players show up and Kobe Bryan or Michael Jordan would

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take over the game. Well, I think in a lot

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of the investors I admire that they tend to do

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best in the bear markets, and that's part of the

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reason they have such good long term track records. Anybody

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can be a genius in a bull market. If you

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take a bunch of risk and get a little lucky.

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He can do wonderfully well, better than some professionals, Better

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than Warren Buffett in a bull.

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Market, probably a lot of people could do.

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But in the bear markets is we're Warren Buffett's of

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the world.

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Excel.

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That's where he's generated the most of alflaur outperformance through

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his career. And because I had seen the tech bubble

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and then the Great Financial Crisis, and I really grew

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up in a lost decade for stocks. I mean I

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entered the industry at the end of an epic two

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decade bull market and then the stockst and't go anywhere

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from two thousand to two thousand and ten or so,

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and so you know it kind of it created my philosophy,

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which is risk managements to number one priority.

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Hmmm.

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That's that's very powerful. So like everyone else, like yeah,

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and good losses and all of those times. Now going

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back to there may be a lot of people in

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our audience who may not know the bull markets and

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bear markets. Can you expand on that?

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Sure?

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I think the most important thing to realize about the

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stock market is it goes up most of the time,

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and the longer you invest, the better the chance that

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you'll come out in a positive return. But but bear

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markets are usually defined as a drop in the market averages,

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So something like the S and P five hundred of

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the NASDAK of twenty percent or more. If that happens

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in a day or two and it snaps right back,

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most people wouldn't say it's a bear market. A bear

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market's usually a decline of twenty percent or more. That's

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kind of longer lasting and more difficult to work through. So,

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you know, some people debate was twenty twenty two a

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bear market or not? Well, the market went down over

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twenty percent. I kind of think it was, but it

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was a short term one. So bear markets can vary

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in length. They can last years or even a decade plus,

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like two twenty thirteen or so. And then a bull

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market is just when the market's going up, which it

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does most of the time.

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So you mentioned that you had worked with Camfisher himself,

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if I got the name correct, tell us what did

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you learn from him and what would some of the

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lessons that you carried back?

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Sure, the number one lesson I learned is that markets

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are ruled by supply and demand, and that was a

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really important one even more important than I realized now

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that I'm at this point in my career and I

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look back, And the reason I say that is because

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a lot of people subscribe to different religions in terms

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of how they invest. For instance, some people believe in

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something called value investing, which is buying the cheaper stocks

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in the market, cheaper relative to their earnings power cash

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flow is what I mean by that, not necessarily the

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price per share, but relative to the fundamentals, so out

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of favor companies that are bargains. And that strategy has

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done really well over the last hundred years, but it

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has not done well over the last ten plus years.

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Something called growth investing has done better over the last decade.

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That's the companies are growing their earnings of revenues at

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a really high rate. Usually those trade at higher valuations

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because they're more attractive fundamentally, and we've been in a

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cycle where growth stocks have just trounced value stocks. But

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those aren't the only two types of investors. There's also

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people that look at charts and they make their decisions

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based on patterns in the charts. I'm somebody who believes

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any method that I just mentioned can work really well

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if you're disciplined in how you practice it. But because

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they use strategies work well at different times. I don't

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believe in just looking at the market one way. I

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like looking at it as a holistic market. That is,

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buyers and sellers, and anything that moves supply and demand

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for share is going to be the main thing to

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focus on. So that way you don't get stuck in

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a long period of time where your style is out

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of favor, because when that happens and you're not doing

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as well as your neighbors, you're often tempted to abandon

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the strategy at the exact wrong time, because just when

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value stocks are going to finally do well, a lot

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of people will probably throw in the towel. So Ken

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taught me to be agnostic on style. I think in

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terms of the market cycle. In the big picture, if

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there's going to be a bull market, you want to

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be mostly in stocks. Get your asset allocation right. That's

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the most important investing decision is what's the proportion of stocks, bonds,

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and cash in your portfolio. That will influence things more

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than any other decision you make. And then within the

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stock market, he taught me how to think macro oriented,

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so which sectors are going to do best based on

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the overriding picture that we see in the economy in

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the market, and then what types of stocks are best

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representative of those themes that you may identify. So he

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taught me to look at the market way that I

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think is kind of unique. And that's one of the

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reasons he's been successful for a very long time.

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He started his.

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Firm when I was born, and now they managed two

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hundred billion dollars plus. And the reason he's been able

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to survive and thrive over time is he's always adapted

300
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to the different changes in the market. I think it's

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really important for any investor to do.

302
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So Basically, what I'm hearing is that see where the

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winds are blowing, and when you talked about supply and demand,

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is also looking at consumer trends, market trends, where what

305
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is happening, what's what are the new and also kind

306
00:15:32.600 --> 00:15:38.320
of knowing think whether it's a fad trend or it's

307
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a paradigm shift, because if it is long term, then

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you know that this investment will it may not do

309
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so well in the near term, but it will be

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good in the long term. Is my understanding.

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I would agree with everything you just said. Yeah, you

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have to have some patience because nothing outperforms every day,

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every week, every month, every year. So you really have

314
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to decide what's your time horizon.

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How long.

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Do I have to en invest over that time period?

317
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And that's different for different people. So it's important to

318
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have a benchmark for your portfolio. A benchmark is anything

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that could be considered a broad market index that has

320
00:16:17.600 --> 00:16:20.440
a return history that's consistent with the goals that you're

321
00:16:20.480 --> 00:16:23.240
trying to pursue. Some people want to beat the S

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00:16:23.279 --> 00:16:25.879
and P five hundred, that's their number one goal. That's fine,

323
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that's called relative return focus. So what you got to

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do there is you got to figure out what parts

325
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of that benchmark the S and P five hundred are

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more attractive or less attractive based on where you think

327
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the market cycle is. And what you do is you

328
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overweight the areas you like better, but you also own

329
00:16:40.039 --> 00:16:42.200
some stuff in the areas you don't necessarily like, and

330
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that's just in case you're wrong. It's called a core

331
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and counter strategy. And other people may not care about

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beating the market. They may care about funding their key

333
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goals in their life. That's a completely different set of objectives.

334
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I think more people fit into this category that I've

335
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worked with in my twenty year career, and that's why

336
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I think it's really important to decide what are your

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personal goals, how are they intrinsically linked to the core

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values that you have, and how can you be inspired

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to pursue those goals and make sure you can fund

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them on time? And when you figure that out, it's

341
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just about how much is each goal going to cost

342
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me over what timeline and what's the return and savings

343
00:17:22.359 --> 00:17:25.599
rate I need to have to average to fund those

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goals on time? And you can use something called a

345
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Monte Carlos simulation if you work with a financial advisor.

346
00:17:30.680 --> 00:17:34.279
Almost every financial advisor probably has that capability, or even

347
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if you want to buy your own Monte Carlos software

348
00:17:36.319 --> 00:17:39.039
and do it yourself, it's not that expensive. What that

349
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process does is it takes a lot of historical returns

350
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projects the probability of you getting to each of your

351
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goals on time. You don't want to be somebody who's

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got one hundred percent certainty of reaching your goals, or

353
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you're probably not dreaming big enough. So what I encourage

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people to do is try to be above eighty percent

355
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if you can in terms of the likelihood of getting there.

356
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That way, if some bad luck comes along, you happen

357
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to invest a big chunk of money right before big

358
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market downturn, for instance, you have time to make your

359
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way back. The key thing with investing is to never

360
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put all your money into one basket and then it

361
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blows up and then your game over. If you stay

362
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in the game long enough, time is your most significant

363
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tailwind as an investor.

364
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So you really just.

365
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Got to know what you want to achieve and then

366
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have a plan that you can use to get there.

367
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That isn't It is fairly flexible and gives you a

368
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lot of opportunities to win.

369
00:18:35.400 --> 00:18:39.440
Yeah, and that philosophy definitely ties back to what you

370
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had initially mentioned about risk management. That was one of

371
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the things that you learned, and it does make sense because,

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as you mentioned, if you put all your eggs in

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one basket and it breaks, then you're left for ah. So,

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00:18:55.640 --> 00:18:59.079
now tell us how did your transition from the corporate

375
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world in frontpreneur.

376
00:19:00.119 --> 00:19:07.039
Ship by accident. I didn't plan on it. I was

377
00:19:07.119 --> 00:19:10.279
unexpectedly fired from my job one day on a Friday.

378
00:19:10.960 --> 00:19:12.920
I thought I was going in to have a meeting

379
00:19:13.000 --> 00:19:15.519
with my partner about our succession plan that we had

380
00:19:15.559 --> 00:19:17.480
been working on for like two years. We had an

381
00:19:17.519 --> 00:19:19.880
investment bank where we hired, we had lawyers. I thought

382
00:19:19.920 --> 00:19:21.640
we were getting ready to paper our deal that we

383
00:19:21.680 --> 00:19:24.599
had talked about for a long time, and then I

384
00:19:24.640 --> 00:19:28.359
got a pink slip instead. And it was super surprising

385
00:19:28.599 --> 00:19:30.839
because I had been at the company for seven years.

386
00:19:31.319 --> 00:19:33.799
On paper, we were succeeding. We had grown the firm

387
00:19:33.839 --> 00:19:37.039
five hundred percent since I arrived. I was running a

388
00:19:37.079 --> 00:19:40.000
portfolio of equities that was a strategy that you could

389
00:19:40.000 --> 00:19:43.160
compare to peer groups, and it was top one percent

390
00:19:43.240 --> 00:19:46.000
over a four year period. So I thought I was

391
00:19:46.039 --> 00:19:47.839
doing my job well and we were doing well as

392
00:19:47.839 --> 00:19:50.799
a team going to the company. But I was let

393
00:19:50.839 --> 00:19:54.720
go anyways, and the main reason was just me and

394
00:19:54.759 --> 00:19:57.279
my partner didn't have a similar story about where we

395
00:19:57.279 --> 00:20:00.000
were trying to take the firm. We kind of damed

396
00:20:00.559 --> 00:20:04.119
it because we couldn't have open conversations about it. But

397
00:20:04.160 --> 00:20:06.000
then all of a sudden, I think what happened is

398
00:20:06.039 --> 00:20:09.240
he made a decision he wasn't ready to retire, and

399
00:20:09.680 --> 00:20:12.400
since we had this plan we had worked on. He

400
00:20:12.440 --> 00:20:14.880
saw me as somebody needed to be removed from the situation,

401
00:20:15.000 --> 00:20:17.319
and that was super hard pill to swallow because I

402
00:20:17.319 --> 00:20:19.480
thought we were succeeding. I thought it was unfair, but

403
00:20:19.559 --> 00:20:23.000
really didn't matter. What mattered was I had to figure

404
00:20:23.000 --> 00:20:26.000
out what to do next, and it took about six

405
00:20:26.079 --> 00:20:28.559
days to think about it and to talk to my

406
00:20:28.640 --> 00:20:31.400
wife and decided, I'm going to start my own company.

407
00:20:31.480 --> 00:20:34.519
If I've helped grow this little firm this much, and

408
00:20:34.559 --> 00:20:36.920
I've worked at one of the biggest, best firms. Also,

409
00:20:37.000 --> 00:20:39.440
i have the capability to build my own firm from

410
00:20:39.440 --> 00:20:41.000
the ground up, so I'm going to just do that.

411
00:20:41.799 --> 00:20:43.799
And that was fine for a few weeks. I was

412
00:20:43.839 --> 00:20:46.279
starting to bring in new clients and everything was kind

413
00:20:46.319 --> 00:20:49.720
of starting to take shape, and then this former partner

414
00:20:49.759 --> 00:20:52.680
sued me because a few of these clients that we

415
00:20:52.720 --> 00:20:55.599
had worked with that wanted to follow me voluntarily followed me.

416
00:20:56.480 --> 00:20:59.319
And that was a real real conundrum because now I'm

417
00:20:59.359 --> 00:21:01.720
not just like, you know, without a paycheck all of

418
00:21:01.759 --> 00:21:04.599
a sudden, I've also got six figure legal bills I'm

419
00:21:04.640 --> 00:21:08.279
staring at in the future. And that made me reassess

420
00:21:08.359 --> 00:21:12.319
everything and almost wave the white flag because the financial

421
00:21:12.359 --> 00:21:15.519
analyst in me looked at the numbers and how stressful

422
00:21:15.519 --> 00:21:17.359
this was probably going to be and said, this doesn't

423
00:21:17.400 --> 00:21:20.119
make a lot of financial sense. But then there was

424
00:21:20.160 --> 00:21:22.079
another part of me and said, no, no, no, I

425
00:21:22.400 --> 00:21:24.440
don't think waving the white flag is going to feel

426
00:21:24.440 --> 00:21:26.759
good long term, because what that will mean in my

427
00:21:26.880 --> 00:21:28.480
mind is I'm letting someone.

428
00:21:28.279 --> 00:21:29.640
Bully me out of my dream.

429
00:21:30.519 --> 00:21:33.519
And I was not going to settle for that story,

430
00:21:34.160 --> 00:21:36.480
come hell or high water. I was gonna have my

431
00:21:36.519 --> 00:21:39.400
own business at that point. So the long story short

432
00:21:39.480 --> 00:21:42.720
is I decided to fight back. I countersuit him, and

433
00:21:42.839 --> 00:21:45.160
after a few years of back and forth, we actually

434
00:21:45.200 --> 00:21:48.119
went to a trial and I won the trial, and

435
00:21:48.160 --> 00:21:51.880
I also got my attorneys fees back, and now I

436
00:21:51.960 --> 00:21:55.200
still have a business and it's, you know, thankfully worth

437
00:21:55.200 --> 00:21:57.680
a lot more than my IRA that I had to

438
00:21:57.759 --> 00:22:01.519
liquidate to pay for that legal fight, And most people

439
00:22:01.720 --> 00:22:04.599
in my industry would say, don't ever liquidate in IRA.

440
00:22:04.759 --> 00:22:09.480
There's major tax ramifications. That's the cardinalsin planning. But I

441
00:22:09.519 --> 00:22:11.440
had to do that privia because there was no other

442
00:22:11.480 --> 00:22:13.799
way for me to stay in the game, and I

443
00:22:13.880 --> 00:22:16.519
became so passionate about my business at that point that

444
00:22:16.640 --> 00:22:19.400
nothing was going to stop me. And so I'm really

445
00:22:19.440 --> 00:22:21.599
glad I made that decision in hindsight, but it really

446
00:22:21.680 --> 00:22:24.599
took getting fired to teach me why core values are

447
00:22:24.680 --> 00:22:28.400
so important and the financial and the story behind our

448
00:22:28.440 --> 00:22:31.799
financial plan is so valuable because sometimes we need to

449
00:22:31.799 --> 00:22:34.279
make our financial decisions not based on the numbers of

450
00:22:34.279 --> 00:22:35.960
the spreadsheets. We need to do it based on our

451
00:22:36.000 --> 00:22:38.759
own heartfelt story. Who are we, who do we want

452
00:22:38.759 --> 00:22:41.240
to be in our life? And we need to attach

453
00:22:41.400 --> 00:22:44.079
those core values that we know that are important to

454
00:22:44.160 --> 00:22:49.119
us to our future goals so that they come like

455
00:22:49.160 --> 00:22:51.880
an emotional magnet to pull us forward even when times

456
00:22:51.880 --> 00:22:55.279
are tough. Because no matter what plan anybody does, investment strategy,

457
00:22:55.319 --> 00:22:57.599
financial plan, whatever you want to call it, you're going

458
00:22:57.680 --> 00:22:59.839
to have to adapt at some point because something like

459
00:23:00.039 --> 00:23:02.519
what happened to me happens to everybody. I realized at

460
00:23:02.519 --> 00:23:06.000
some point in the road, somebody gets fired, somebody gets sick,

461
00:23:06.400 --> 00:23:09.200
somebody has some other tough thing to deal with that

462
00:23:09.240 --> 00:23:12.039
they could never have forecasted. And the key when those

463
00:23:12.039 --> 00:23:14.039
things happen is you have to have something that keeps

464
00:23:14.039 --> 00:23:17.079
you on track and able to adapt and rebound. And

465
00:23:17.119 --> 00:23:19.359
that's why I think the story behind your financial plan

466
00:23:19.480 --> 00:23:20.839
is something that's really important.

467
00:23:21.839 --> 00:23:26.359
Absolutely, and life happens as you say. So on one hand,

468
00:23:26.480 --> 00:23:29.279
I'm really sorry what you went through, and on another,

469
00:23:29.440 --> 00:23:33.039
I definitely see the silver lining that your passion pulled

470
00:23:33.079 --> 00:23:37.039
you through, So kudos to you for that.

471
00:23:37.640 --> 00:23:38.279
I'm thank you.

472
00:23:38.400 --> 00:23:40.880
That's why I called my first silver lights silver linings.

473
00:23:40.920 --> 00:23:43.400
You just said the key word. I just decided at

474
00:23:43.400 --> 00:23:45.079
that time, I'm going to make a positive out of

475
00:23:45.079 --> 00:23:47.519
this negative. That's the only way I can look back

476
00:23:47.599 --> 00:23:50.200
later in my life and feel good about this episode.

477
00:23:50.920 --> 00:23:52.960
Because every part of our life is a scene in

478
00:23:52.960 --> 00:23:54.960
a movie if you really think about it, and some

479
00:23:55.000 --> 00:23:57.000
of those scenes are wonderful and some of them are

480
00:23:57.039 --> 00:24:00.480
not so wonderful. But that's okay because every great story

481
00:24:00.519 --> 00:24:03.119
has ups and downs like that. The key is to

482
00:24:03.160 --> 00:24:05.400
know what your story is and to not let the

483
00:24:05.440 --> 00:24:07.920
external world or other people shape that for you.

484
00:24:09.680 --> 00:24:15.720
Absolutely. So going forward, I'm assuming that now you're all

485
00:24:15.799 --> 00:24:17.200
settled and doing well.

486
00:24:19.000 --> 00:24:20.799
Yeah, yeah, no, I mean things are going good. And

487
00:24:20.839 --> 00:24:23.279
my book just came out this year. I wrote a

488
00:24:23.319 --> 00:24:26.559
book called The Four Minute Retirement Plan. The first third

489
00:24:26.559 --> 00:24:29.039
of it is about the story behind your financial plan.

490
00:24:30.279 --> 00:24:34.480
It's because I learned through my own trials and tribulations

491
00:24:35.079 --> 00:24:38.920
that wealth management without meaning is meaningless, and so we

492
00:24:38.960 --> 00:24:41.440
need to attach meaning to our financial goals, and we

493
00:24:41.519 --> 00:24:44.640
need to have a financial plan that makes sense too.

494
00:24:45.079 --> 00:24:47.240
But if your financial plan makes a lot of financial

495
00:24:47.279 --> 00:24:49.720
sense but it doesn't emotionally resonate with you, you're not

496
00:24:49.759 --> 00:24:51.920
going to get where you want to be. So the

497
00:24:51.960 --> 00:24:55.119
book is about combining those two things. It ranked the

498
00:24:55.200 --> 00:24:58.200
number one Amazon bestseller in its category, which I was

499
00:24:58.240 --> 00:25:03.240
excited about. Yeah, thank you very much. It took long

500
00:25:03.319 --> 00:25:05.519
time to write, and I'm happy that I did it.

501
00:25:06.960 --> 00:25:11.640
So now let's take a look at three different categories. Now,

502
00:25:11.920 --> 00:25:16.000
tell us, like, let's say if people are whether they're

503
00:25:16.039 --> 00:25:19.400
seasoned investors or they're just kind of starting out in

504
00:25:19.440 --> 00:25:23.319
the professional life. They have access to the four oh

505
00:25:23.319 --> 00:25:25.519
one K, so let's explore that, and then we'll go

506
00:25:25.519 --> 00:25:29.240
to entrepreneurs and then general investing. So share with us

507
00:25:29.279 --> 00:25:32.039
anybody who is just kind of starting out in their

508
00:25:32.039 --> 00:25:36.880
professional careers, or even if they're in there, what would

509
00:25:36.960 --> 00:25:39.000
be a few great strategies for them.

510
00:25:40.119 --> 00:25:42.160
The first thing I would recommend for a young person

511
00:25:42.240 --> 00:25:45.359
is to get on a sound budget, because you can't

512
00:25:45.400 --> 00:25:48.559
save money if you spend it all. So there's something

513
00:25:48.640 --> 00:25:52.200
really simple called the fifty to thirty twenty formula that says,

514
00:25:52.359 --> 00:25:55.400
fifty percent of your income should go approximately to the

515
00:25:55.440 --> 00:25:57.799
needs in your life. They have the roof over your head,

516
00:25:57.839 --> 00:25:59.720
the food that you put on your table, et cetera.

517
00:26:00.319 --> 00:26:03.119
Thirty percent would be what I call the fund money budget.

518
00:26:03.400 --> 00:26:06.799
This would be things for discretionary spending that if you

519
00:26:06.880 --> 00:26:10.440
stay within thirty percent of your income allocated to these items,

520
00:26:10.440 --> 00:26:14.359
it should be what I call guilt free consumption. You know, vacations,

521
00:26:14.440 --> 00:26:16.599
new clothes, new car, whatever you want to call it,

522
00:26:16.799 --> 00:26:19.079
but those that if you keep about thirty percent of

523
00:26:19.119 --> 00:26:22.400
your budget towards those things, that leaves about twenty percent

524
00:26:22.519 --> 00:26:25.920
leftover you can invest long term in your future goals,

525
00:26:25.960 --> 00:26:29.519
whether they be retirement or something else. And that's a

526
00:26:29.640 --> 00:26:35.359
very simple, good schematic to budget based on. And then

527
00:26:35.440 --> 00:26:38.279
if you're young, I would I would invest mainly with

528
00:26:38.359 --> 00:26:41.839
your savings and equities because that's the best asset class

529
00:26:41.880 --> 00:26:43.640
over the very long term. And if you're young, you

530
00:26:43.680 --> 00:26:46.240
probably have a long time horizon, so you don't want

531
00:26:46.240 --> 00:26:48.000
to have a lot of bonds or cash. You want

532
00:26:48.039 --> 00:26:51.039
to have equities. If you want to have a little

533
00:26:51.079 --> 00:26:54.640
bitcoin or gold or whatever else, that's okay. But I

534
00:26:54.640 --> 00:26:57.480
think equities are the best asset class for most people over.

535
00:26:57.359 --> 00:26:58.839
The long term.

536
00:26:59.160 --> 00:27:01.240
So I think those are two things to keep in mind.

537
00:27:02.400 --> 00:27:04.920
And what about people who are somewhere in the middle

538
00:27:05.319 --> 00:27:06.799
or getting ready to retire.

539
00:27:08.079 --> 00:27:11.279
Well, I think in that case you probably want to

540
00:27:11.319 --> 00:27:15.519
figure out what are some emotionally powerful goals over a

541
00:27:15.559 --> 00:27:18.960
few different time horizons. One thing I believe is that

542
00:27:19.000 --> 00:27:21.359
too many people have too many goals when it comes

543
00:27:21.359 --> 00:27:24.240
to financial plans. If you've got five or six different

544
00:27:24.279 --> 00:27:27.119
goals that you're trying to model, say you start working

545
00:27:27.119 --> 00:27:29.279
with a lot of people start working with financial planners

546
00:27:29.319 --> 00:27:32.240
or investment advisors around midlife if they have the means,

547
00:27:32.880 --> 00:27:35.359
and that's a good time to really take an accounting

548
00:27:35.440 --> 00:27:37.319
of where you're at, where you're at in your life,

549
00:27:37.319 --> 00:27:40.200
where you're trying to go. And I would recommend having

550
00:27:40.279 --> 00:27:43.200
three key goals. One short term goal which would be

551
00:27:43.519 --> 00:27:46.599
one to three years, a medium term goal let's call

552
00:27:46.640 --> 00:27:49.119
that three to five years maybe, and then a long

553
00:27:49.240 --> 00:27:52.079
term goal which would be like ten years plus. And

554
00:27:52.440 --> 00:27:55.720
I would try to figure out not just what the

555
00:27:55.799 --> 00:27:57.839
goal is and by when you want to achieve it.

556
00:27:57.920 --> 00:27:58.960
But why.

557
00:28:00.160 --> 00:28:03.480
Story can come in handy. The story behind your financial

558
00:28:03.480 --> 00:28:06.480
plan is the why of your financial plan. So what

559
00:28:06.559 --> 00:28:08.359
I teach people to do in the book that I

560
00:28:08.400 --> 00:28:10.279
don't think has ever been done before, is I teach

561
00:28:10.359 --> 00:28:12.519
them how to write the story behind their financial plan,

562
00:28:12.960 --> 00:28:14.920
and that starts with thinking back, like we did in

563
00:28:14.920 --> 00:28:17.960
the begin this conversation to key periods early in your life,

564
00:28:18.079 --> 00:28:20.559
Keep people, keep places that really.

565
00:28:20.359 --> 00:28:21.400
Are valuable to you.

566
00:28:22.519 --> 00:28:25.319
My grandparents instilled to me a lot of my core values,

567
00:28:26.519 --> 00:28:28.640
and what I try to do with my own financial

568
00:28:28.680 --> 00:28:31.359
plan is link my core values to my future goals

569
00:28:31.839 --> 00:28:34.079
so that they're more inspiring for me to follow through on.

570
00:28:35.160 --> 00:28:36.680
And then I try to just make sure that me

571
00:28:36.720 --> 00:28:38.880
and my wife have the budget and investment plan that

572
00:28:39.240 --> 00:28:41.119
makes sense to fund those goals on time. And I

573
00:28:41.200 --> 00:28:43.480
do the same thing with my clients. One of my clients,

574
00:28:43.559 --> 00:28:46.759
for instance, is getting ready to retire pretty soon and

575
00:28:47.079 --> 00:28:50.559
he's probably going to move from California to Georgia. And

576
00:28:50.759 --> 00:28:53.240
the reason that he's probably going to do that is

577
00:28:53.319 --> 00:28:57.039
partly financial. It's a little cheaper cost of living right now.

578
00:28:57.079 --> 00:28:59.039
He has a good job in California, so he can't

579
00:28:59.119 --> 00:29:02.480
leave here. But when he retires in a few years,

580
00:29:02.519 --> 00:29:04.680
he's a free agent. He can go anywhere he wants

581
00:29:04.799 --> 00:29:07.319
and write the next chapter of his life however he wants.

582
00:29:07.359 --> 00:29:09.960
And so Georgia makes sense for him because it's a

583
00:29:10.000 --> 00:29:13.119
little cheaper, but also because there's a particular community that

584
00:29:13.279 --> 00:29:16.880
has an unbelievable golf like three or four golf courses.

585
00:29:16.920 --> 00:29:19.920
He's a big golfer, so that's one of his happiness

586
00:29:19.920 --> 00:29:22.599
triggers that he can meet there better than here. But

587
00:29:22.680 --> 00:29:25.400
even more important, this is a man who grew up

588
00:29:25.400 --> 00:29:29.400
in a house with seven brothers and sisters, and family's

589
00:29:29.680 --> 00:29:32.920
one of his core values. And he's got three daughters

590
00:29:33.000 --> 00:29:37.559
that live around Georgia, and so for him, that's what

591
00:29:37.680 --> 00:29:41.400
makes retirement exciting. He envisions himself being in Georgia, being

592
00:29:41.480 --> 00:29:45.839
by his family, creating beautiful memories, and owning his time

593
00:29:45.960 --> 00:29:47.599
enough to where he can play golf as much as

594
00:29:47.599 --> 00:29:50.160
he wants. And he's got plenty of places he can

595
00:29:50.200 --> 00:29:52.559
do that. And so that's that's what I think you

596
00:29:52.559 --> 00:29:54.599
should try to do as you start to save money,

597
00:29:54.640 --> 00:29:56.640
is try to think, how do I allocate this money

598
00:29:56.680 --> 00:29:59.720
to live a better lifestyle, and then ultimately have a

599
00:29:59.720 --> 00:30:00.640
better legacy.

600
00:30:01.799 --> 00:30:07.319
Absolutely, some really great nuggets over there. And now let's

601
00:30:07.319 --> 00:30:10.359
say that a lot of entrepreneurs in in entrepreneur's lives,

602
00:30:10.920 --> 00:30:16.720
sometimes there is femine, sometimes there is feast, and yeah,

603
00:30:16.759 --> 00:30:21.359
it's important that they start investing in themselves as well,

604
00:30:21.400 --> 00:30:24.640
because what happens is as an entrepreneur, there's so much

605
00:30:25.279 --> 00:30:27.279
investments you have to put in the business, Like so

606
00:30:27.319 --> 00:30:29.920
many times like you're getting you've got even if you

607
00:30:29.960 --> 00:30:32.000
have got good cash flow back, you are like, okay,

608
00:30:32.039 --> 00:30:35.160
let me invest in the business. So how can entrepreneurs

609
00:30:35.200 --> 00:30:38.279
balance that, that growth and that long term investment.

610
00:30:39.519 --> 00:30:42.039
Sure, well, it can be challenging. I know what that

611
00:30:42.119 --> 00:30:45.880
looks like, ob be. So I think the most important

612
00:30:45.880 --> 00:30:47.960
thing is to sometimes take a step back and look

613
00:30:48.000 --> 00:30:50.640
at the big picture. And again, this is where your

614
00:30:50.640 --> 00:30:54.839
story can be helpful. If you if you're passionate about

615
00:30:54.880 --> 00:30:57.160
owning your own business, and you truly believe you've got

616
00:30:57.200 --> 00:31:01.759
a viable business plan, then and you need to prioritize that.

617
00:31:02.000 --> 00:31:04.799
And it's okay to reinvest in your business. You're reinvesting

618
00:31:04.839 --> 00:31:09.440
in yourself and that's an asset. It's also important for

619
00:31:09.480 --> 00:31:12.039
people that are self employed to have other assets to

620
00:31:12.079 --> 00:31:16.359
counterbalance the volatility of their business if possible. Things like

621
00:31:16.400 --> 00:31:19.559
an emergency savings account can be very useful. That's one

622
00:31:19.559 --> 00:31:23.599
of the most important, like protective defense mechanisms in your

623
00:31:23.640 --> 00:31:28.559
overall portfolio from an unintended debt spiral. The thing that

624
00:31:28.640 --> 00:31:31.319
causes the most financial distress is when people get in

625
00:31:31.519 --> 00:31:34.519
credit card debt and things like that, where they think

626
00:31:34.519 --> 00:31:36.640
it's a short term fix because they've got a cash

627
00:31:36.640 --> 00:31:39.000
blow crunch, so they put my on a credit card

628
00:31:39.039 --> 00:31:42.240
and now interest rates are over twenty percent and very

629
00:31:42.279 --> 00:31:44.480
quickly that can snowball and work against you in a

630
00:31:44.559 --> 00:31:46.640
way that's hard to climb out of. So that's why

631
00:31:46.640 --> 00:31:48.799
you want to have an emergency savings account of six

632
00:31:48.839 --> 00:31:51.319
to twelve months usually of your earnings, where it's just

633
00:31:51.400 --> 00:31:55.319
in a cash account or cash equivalent very low risk

634
00:31:55.759 --> 00:31:58.359
money market CDs. Whatever you want to pick from there

635
00:31:58.440 --> 00:32:01.119
is fine, but I think it's good. It's important to

636
00:32:01.160 --> 00:32:04.480
have that fallback cushion so that when the volatility of

637
00:32:04.519 --> 00:32:07.200
your business is, you know, not where you want it

638
00:32:07.240 --> 00:32:09.279
to be, you've got something to fall back on. It

639
00:32:09.319 --> 00:32:13.480
keeps you in the game for the long term. Entrepreneur,

640
00:32:13.559 --> 00:32:16.279
if they have an if they have a volatile income stream,

641
00:32:16.799 --> 00:32:21.519
it's important to favor a bigger emergency savings account. A

642
00:32:21.720 --> 00:32:24.440
W two employee could probably get by with six months

643
00:32:24.480 --> 00:32:28.440
of reserves. I would recommend that an entrepreneur have twelve

644
00:32:28.440 --> 00:32:31.359
months plus just because that's what I had and that's

645
00:32:31.400 --> 00:32:33.720
what that's what helped me survive. I mean, I had

646
00:32:33.759 --> 00:32:36.640
a lot of savings and including my IRA, and you

647
00:32:36.640 --> 00:32:39.279
know now I lickd with it in my IRA, which

648
00:32:39.319 --> 00:32:41.200
is an extreme thing I didn't want to do. So

649
00:32:41.200 --> 00:32:43.240
sometimes you know that make a really tough choice is

650
00:32:43.240 --> 00:32:45.920
your business worth it or not because it can get hairy.

651
00:32:46.400 --> 00:32:49.279
But you know, my business today is worth well well

652
00:32:49.279 --> 00:32:51.200
in access to what my IRA was, So I'm glad

653
00:32:51.240 --> 00:32:54.480
it made that decision. And the key thing for everybody

654
00:32:54.519 --> 00:32:56.599
is to make your decisions that are true to you,

655
00:32:57.079 --> 00:33:00.079
not let fear or anyone else guide you down on

656
00:33:00.119 --> 00:33:03.519
the wrong road. So sometimes if you're in a turbulent period,

657
00:33:03.559 --> 00:33:05.519
it's just try to take a step back, look at

658
00:33:05.559 --> 00:33:08.920
your life, ask yourself what you'll be happy or said

659
00:33:08.960 --> 00:33:10.799
about in twenty years when you look back on this

660
00:33:10.920 --> 00:33:13.960
time period based on the decisions you could make, and

661
00:33:14.319 --> 00:33:16.240
try to talk to your future self and be your

662
00:33:16.240 --> 00:33:19.319
future best friend and make the decisions that are right

663
00:33:19.359 --> 00:33:19.680
for you.

664
00:33:20.960 --> 00:33:25.279
Absolutely, that makes so much sense that it's important to

665
00:33:25.400 --> 00:33:29.319
do things that are right for you. Now, question for

666
00:33:29.400 --> 00:33:33.039
you is that you mentioned about some of the mistakes

667
00:33:33.039 --> 00:33:37.039
people make. Are there any other mistakes financial mistakes that

668
00:33:37.079 --> 00:33:39.000
people make that they should be on the lookout for.

669
00:33:39.880 --> 00:33:42.559
Yeah. One common one right now is I think a

670
00:33:42.599 --> 00:33:45.160
lot of people have too much money in passive investments.

671
00:33:45.640 --> 00:33:48.440
I wrote a chapter called the passive investing Bubble in

672
00:33:48.440 --> 00:33:51.200
my book about this. So if you look at most

673
00:33:52.440 --> 00:33:55.119
four to oh one K plans, for instance, they're very

674
00:33:55.240 --> 00:33:58.640
very geared towards things called target date funds. Around eighty

675
00:33:58.680 --> 00:34:01.240
five cents of every dollar it's invested in a retirement

676
00:34:01.279 --> 00:34:04.240
account nowadays goes into one of these, and it's it's

677
00:34:04.240 --> 00:34:08.239
basically something that just invests purely in the broad market index,

678
00:34:08.679 --> 00:34:11.679
something like the S and P five hundred. And that's

679
00:34:11.719 --> 00:34:14.400
been a fine strategy over the long term because it's

680
00:34:14.480 --> 00:34:18.119
more cost efficient than hiring active managers that run mutual

681
00:34:18.119 --> 00:34:21.880
funds or ETFs. But one of the problems is now

682
00:34:22.079 --> 00:34:25.039
like sixty percent of the market is in passive investments.

683
00:34:25.079 --> 00:34:27.440
If you look at US stocks around sixty percent is

684
00:34:27.440 --> 00:34:30.760
in passive, which means the majority of the market right

685
00:34:30.800 --> 00:34:34.840
now is just blindly buying the biggest companies, independent of

686
00:34:34.960 --> 00:34:40.159
their valuations, independent of their fundamentals. They're just buying because

687
00:34:40.159 --> 00:34:43.199
of the biggest companies, because that's all that a passive

688
00:34:43.239 --> 00:34:46.360
index favors in terms of the factors that it looks for.

689
00:34:46.760 --> 00:34:50.000
Bigger you are, the bigger the weight. So something like Apple,

690
00:34:50.079 --> 00:34:53.199
for instance, great company, probably my favorite company of all time.

691
00:34:53.440 --> 00:34:55.519
I don't own it right now. The reason I don't

692
00:34:55.519 --> 00:34:57.880
own it is because it trades over ten times sales,

693
00:34:58.320 --> 00:35:01.320
and that's a very high multiple for a low growth company.

694
00:35:01.360 --> 00:35:04.119
It's been low growth over the last few years. But

695
00:35:04.199 --> 00:35:06.199
if you look at where Apple traded ten years ago,

696
00:35:06.320 --> 00:35:09.320
it traded about two time sales, and at that point

697
00:35:09.360 --> 00:35:11.400
in time it had a round a four hundred billion

698
00:35:11.440 --> 00:35:16.000
dollar market cap. Nowadays, it's worked over three trillion dollars,

699
00:35:16.400 --> 00:35:19.440
mostly because the valuation's gone up. And I think that's

700
00:35:19.559 --> 00:35:22.079
mostly because too many people have put money into passive

701
00:35:22.119 --> 00:35:24.880
investments that favor those big companies. And the thing a

702
00:35:24.920 --> 00:35:27.440
lot of people don't realize is the higher the valuation

703
00:35:27.639 --> 00:35:30.239
gets on a stock, to lower the future expected return

704
00:35:30.440 --> 00:35:32.880
is So what I encourage people to do is have

705
00:35:33.000 --> 00:35:35.800
some passive investments if you want, but make sure you're

706
00:35:35.840 --> 00:35:39.920
diversified with some active strategies. Too active meaning something that

707
00:35:39.960 --> 00:35:42.880
doesn't just buy stocks based on their market cap alone.

708
00:35:43.199 --> 00:35:45.119
You could pick the stocks yourself if you think you're

709
00:35:45.159 --> 00:35:46.559
good at it, and have that be a part of

710
00:35:46.559 --> 00:35:48.840
your portfolio. You could hire a professional like me to

711
00:35:48.840 --> 00:35:51.280
do it for you. You could invest in active mutual

712
00:35:51.280 --> 00:35:54.519
funds or ETFs, any of those options. Is find just

713
00:35:54.639 --> 00:35:58.400
counterbalance the active and passive weights in your portfolio and

714
00:35:58.440 --> 00:36:01.599
never invest too much in any one sector. Another problem

715
00:36:01.639 --> 00:36:03.599
with the S and P five hundred is like so

716
00:36:03.760 --> 00:36:05.760
much of it is in these big stocks, so much

717
00:36:05.760 --> 00:36:08.400
of it is in tech. If we have another tech bubble,

718
00:36:08.800 --> 00:36:10.960
that's going to be another lost decade of returns for

719
00:36:11.039 --> 00:36:12.360
a lot of people, and I don't want to.

720
00:36:12.360 --> 00:36:13.000
See that happen.

721
00:36:13.599 --> 00:36:19.159
HM very powerful, and you've also mentioned that women are

722
00:36:19.239 --> 00:36:23.000
more disciplined investors than men. Can you share with this

723
00:36:24.679 --> 00:36:26.000
what's the reason behind that?

724
00:36:26.960 --> 00:36:27.199
Sure?

725
00:36:27.239 --> 00:36:29.519
I wrote a Fordes article about this a few years ago,

726
00:36:29.559 --> 00:36:31.960
and it turns out that women are they have a

727
00:36:32.000 --> 00:36:36.599
better emotional temperament than us men. Men think bigger risks,

728
00:36:37.199 --> 00:36:40.719
trusting their gut instincts more than they should, and women

729
00:36:41.079 --> 00:36:45.199
are more disciplined about the risk return equation. So a

730
00:36:45.239 --> 00:36:47.519
lot of studies have shown that women do better over

731
00:36:47.639 --> 00:36:50.800
time than men in terms of their portfolios. And it's

732
00:36:51.159 --> 00:36:54.760
something that's analogous to what Warren Buffett says about investing.

733
00:36:55.159 --> 00:36:57.639
One of the things I always remember that he says

734
00:36:57.800 --> 00:37:01.760
is that he it's important to have a decent t IQ,

735
00:37:01.960 --> 00:37:04.519
but the highest IQ doesn't win in the stock market.

736
00:37:04.559 --> 00:37:07.760
The person has a pretty good IQ, but a really

737
00:37:07.800 --> 00:37:10.599
strong emotional temperament in control of their emotions is going

738
00:37:10.679 --> 00:37:13.880
to far do far better than somebody without very high

739
00:37:13.960 --> 00:37:18.039
IQ and poor emotional temperament. So that's that's one of

740
00:37:18.079 --> 00:37:19.920
your dantages Priva over us.

741
00:37:21.880 --> 00:37:24.480
And you have talked about a lot of financial lies

742
00:37:24.519 --> 00:37:29.920
that we tell ourselves. So is there anything that you

743
00:37:30.159 --> 00:37:33.280
think we need to add on to for our audience.

744
00:37:35.280 --> 00:37:38.119
Yeah. I think one of the most devastating lies we

745
00:37:38.119 --> 00:37:41.239
can tell ourselves is that no matter what we do,

746
00:37:41.280 --> 00:37:44.400
we can't get ahead. There's a lot of what I

747
00:37:44.440 --> 00:37:48.960
call future fatalistic thinking nowadays, where you certain people don't

748
00:37:49.000 --> 00:37:51.920
even want to bother trying to plan for retirement because

749
00:37:52.679 --> 00:37:54.920
they just figure they'll never be able to retire and

750
00:37:54.960 --> 00:37:57.320
it's too complex of a challenge for them to figure

751
00:37:57.320 --> 00:37:58.719
out how they're going to get from point A to

752
00:37:58.760 --> 00:38:01.679
point B. A lot of people also show that kind

753
00:38:01.719 --> 00:38:05.320
of thinking and the fact that over half of Americans

754
00:38:05.320 --> 00:38:09.840
don't have a will. That's the most basic legacy builder

755
00:38:09.880 --> 00:38:11.960
that you can do, is like as a favor to

756
00:38:12.000 --> 00:38:14.039
your family, like when you're not around, like, don't leave

757
00:38:14.039 --> 00:38:15.960
a mess for your loved ones to clean up.

758
00:38:16.079 --> 00:38:17.480
Just do a will. It's so easy.

759
00:38:17.519 --> 00:38:19.280
You can go on legal Zoom or any of these

760
00:38:19.320 --> 00:38:22.800
discount websites and easily get a tenplate for not a

761
00:38:22.800 --> 00:38:25.639
lot of money to do one. So I think it's

762
00:38:25.679 --> 00:38:28.239
important to just have a positive story no matter what

763
00:38:28.280 --> 00:38:31.400
your circumstance is, because what matters is everybody wants a

764
00:38:31.400 --> 00:38:34.119
compelling future no matter what's happened to you in the past.

765
00:38:34.119 --> 00:38:35.960
You may have been burned in the stock market, you

766
00:38:36.000 --> 00:38:39.000
may have been you know, subject to some other financial

767
00:38:39.039 --> 00:38:42.000
distress that you can't let your mind keep going there

768
00:38:42.000 --> 00:38:44.519
and bring it into the present and future. You have

769
00:38:44.599 --> 00:38:46.840
to remember that every day is a new opportunity to

770
00:38:46.920 --> 00:38:50.199
begin again. More intelligently and at the end of the

771
00:38:50.280 --> 00:38:52.639
day that like you know, just just never lie to

772
00:38:52.679 --> 00:38:54.559
yourself about what your true potential is.

773
00:38:56.119 --> 00:39:00.840
Yeah, No, very powerful, and so everything that you have shared,

774
00:39:01.000 --> 00:39:03.360
it kind of brings us back to our core values

775
00:39:03.400 --> 00:39:07.639
and our mindset and the story that we are telling

776
00:39:07.679 --> 00:39:10.400
ourselves what is serving us, what is not serving us,

777
00:39:10.400 --> 00:39:12.719
and getting rid of it. So which is so powerful

778
00:39:14.039 --> 00:39:21.880
that it's fascinating that regardless whichever failure in the things begin,

779
00:39:22.000 --> 00:39:25.280
the success begins with the mindset and a core values.

780
00:39:25.599 --> 00:39:27.599
So I know you've mentioned about your book, So tell

781
00:39:27.679 --> 00:39:28.559
us about your book.

782
00:39:30.159 --> 00:39:32.760
It's called the four Minute Retirement Plan. And the reason

783
00:39:32.880 --> 00:39:34.800
I decided to call out that is it's inspired by

784
00:39:34.800 --> 00:39:36.880
the story of Roger Banister, who ran the first four

785
00:39:36.920 --> 00:39:40.119
minute mile in the nineteen fifties. He was supposed to

786
00:39:40.119 --> 00:39:42.360
be retired from running at the time. He was twenty

787
00:39:42.360 --> 00:39:46.239
five year old student at Oxford Medical School, but it

788
00:39:46.239 --> 00:39:48.239
had been about ten years where the record for the

789
00:39:48.280 --> 00:39:51.559
mile run was like four minutes in one second, and

790
00:39:51.639 --> 00:39:54.599
so as no runner could beat that time a year

791
00:39:54.639 --> 00:39:56.920
after year, a lot of people develop strange theories. Maybe

792
00:39:56.960 --> 00:39:59.480
it's not possible, maybe people will die if they try

793
00:39:59.480 --> 00:40:01.360
to run that has a lot of crazy stuff.

794
00:40:01.679 --> 00:40:02.239
Since he was a.

795
00:40:02.239 --> 00:40:04.280
Physician, he knew there was no limit in the body

796
00:40:04.280 --> 00:40:05.320
to run in a four minute mile.

797
00:40:05.360 --> 00:40:07.199
He knew it was a problem in the mind.

798
00:40:07.280 --> 00:40:09.840
So he decided to pursue that goal to prove to

799
00:40:09.880 --> 00:40:12.559
everybody that was possible. And he did that after he

800
00:40:12.679 --> 00:40:15.199
ran in the Olympics and got fourth place. So he

801
00:40:15.239 --> 00:40:17.599
had a disappointing finish at the Olympics, but he didn't

802
00:40:17.639 --> 00:40:19.920
just retire on a down note. He had a new

803
00:40:19.920 --> 00:40:23.119
invigorating goal to go after and he achieved it. And

804
00:40:23.159 --> 00:40:24.800
one of the reasons he achieved is he had a

805
00:40:24.800 --> 00:40:27.840
super simple strategy to go with his positive story. His

806
00:40:27.920 --> 00:40:30.920
strategy was, there's four laps in a mile. If I

807
00:40:31.039 --> 00:40:33.679
run fifty nine seconds per lap, I'll achieve my goal.

808
00:40:34.119 --> 00:40:37.239
So his training regimen was based on that very simple insight.

809
00:40:37.320 --> 00:40:39.960
He ran fifty nine seconds splits at lunch every day.

810
00:40:40.079 --> 00:40:41.840
He only had a half hour to train, not as

811
00:40:41.880 --> 00:40:44.960
much time as his competitors, but he was really practiced

812
00:40:45.199 --> 00:40:48.239
at those fifty nine seconds splits. And on race day

813
00:40:48.320 --> 00:40:50.599
he had two pace runners on his team that were

814
00:40:50.719 --> 00:40:53.119
in the race with them and their entire job and

815
00:40:53.159 --> 00:40:55.440
the race was to run fifty nine seconds each lap.

816
00:40:55.559 --> 00:40:57.320
So one guy took the front end, the other guy

817
00:40:57.360 --> 00:41:00.639
took the back end, and that helped Banisters stay on pace.

818
00:41:01.400 --> 00:41:04.199
And when he described running that race, he described that

819
00:41:04.239 --> 00:41:06.440
he felt like he was running too slow at the time,

820
00:41:06.480 --> 00:41:08.599
and he felt an urge to speed up, but he

821
00:41:08.719 --> 00:41:10.719
kept the pace that gave him the stamina at the

822
00:41:10.840 --> 00:41:13.679
end to have his banister burst and he.

823
00:41:13.679 --> 00:41:14.639
Ran his miracle mile.

824
00:41:15.360 --> 00:41:17.000
And I take that story and I apply it to

825
00:41:17.039 --> 00:41:20.119
retirement because it's the biggest financial riddle out there. It's

826
00:41:20.159 --> 00:41:22.480
the one that causes the most stress for the most people.

827
00:41:23.039 --> 00:41:25.079
And what I want to help people do is chunk

828
00:41:25.119 --> 00:41:28.159
down the race into manageable parts. I think there's four laps,

829
00:41:28.199 --> 00:41:31.679
a savings lap, investing lap, lifestyle lap, and legacy lap.

830
00:41:32.079 --> 00:41:34.559
So the book gives you strategies you can use that

831
00:41:34.599 --> 00:41:37.480
are proven over time to conquer each one of the

832
00:41:37.559 --> 00:41:40.719
challenges that are part of each of those laps. But

833
00:41:40.760 --> 00:41:42.559
I also remind people at the front end that you know,

834
00:41:42.719 --> 00:41:45.280
Banister couldn't have done anything. The fifty nine seconds splits

835
00:41:45.280 --> 00:41:47.320
would have mattered if he didn't have a positive story

836
00:41:47.400 --> 00:41:50.280
to begin with that he could achieve this optimism is

837
00:41:50.360 --> 00:41:53.760
essential for every major achievement, including in your financial life.

838
00:41:54.199 --> 00:41:56.960
So if you're telling yourself a negative story, you got

839
00:41:56.960 --> 00:41:59.039
to start right there and you got to start editing that.

840
00:42:00.119 --> 00:42:01.559
If you do that and you.

841
00:42:01.559 --> 00:42:05.199
Follow tried and true strategies, they don't have to be

842
00:42:05.280 --> 00:42:07.760
any one strategy or another. I give people a many

843
00:42:07.800 --> 00:42:10.400
they can pick from, because I don't believe it's important

844
00:42:10.440 --> 00:42:12.559
to just have perfect strategies. I think it's important to

845
00:42:12.559 --> 00:42:15.719
make progress on all fourfronts. So that's what the book's about.

846
00:42:16.920 --> 00:42:20.480
Very powerful And where can people find you your book?

847
00:42:21.000 --> 00:42:25.760
Sure, Amazon and other major booksellers, Barnes and Noble, Target,

848
00:42:25.880 --> 00:42:29.639
you can take your pick, and my personal website's Michael

849
00:42:29.679 --> 00:42:32.239
Kanabay dot com. C A N N I V E T.

850
00:42:32.719 --> 00:42:35.079
And you can also go to my corporate website at

851
00:42:35.480 --> 00:42:37.079
Silverlight dot us.

852
00:42:38.840 --> 00:42:42.159
Fantastic. So, as we bring the show to a close,

853
00:42:42.880 --> 00:42:47.039
is there any last minute thoughts that you want to share?

854
00:42:49.719 --> 00:42:52.440
I'll tell the one one really quick story. There's a

855
00:42:52.440 --> 00:42:54.760
man I talk about in the book named Theodore Johnson

856
00:42:54.800 --> 00:42:57.599
who is a ups worker. This speaks to the power

857
00:42:57.639 --> 00:43:00.480
of a story and a simple strategy. This is a

858
00:43:00.519 --> 00:43:02.639
guy who didn't think you could get ahead financially because

859
00:43:02.639 --> 00:43:05.079
he couldn't save enough. He made about fourteen thousand dollars

860
00:43:05.159 --> 00:43:08.000
a year as a VP at UPS in the nineteen fifties,

861
00:43:08.480 --> 00:43:11.039
and his friend asked him a question that changed his life.

862
00:43:11.039 --> 00:43:13.800
He said, what if you just pretend to tax yourself?

863
00:43:14.159 --> 00:43:16.639
Why don't you pay yourself before Uncle Sam? That way

864
00:43:16.679 --> 00:43:20.360
you'll start saving money. And that one simple question completely

865
00:43:20.480 --> 00:43:23.239
changed his thinking. Instead of I can't get ahead, he thought,

866
00:43:23.639 --> 00:43:26.000
you know what, He's right, that's a simple strategy I

867
00:43:26.079 --> 00:43:28.400
believe in. So he started putting twenty percent of his

868
00:43:28.440 --> 00:43:31.880
income every month, paying himself first. He invested all of

869
00:43:31.880 --> 00:43:34.360
it in UPS stock, which broke a rule because it

870
00:43:34.400 --> 00:43:37.880
wasn't diversified. But he got a little lucky. UPS did

871
00:43:38.000 --> 00:43:40.079
very well. And this is the man who never made

872
00:43:40.079 --> 00:43:42.840
more than fourteen thousand dollars in a year. When he died,

873
00:43:42.920 --> 00:43:47.519
his fortune was worth seventy million dollars. He left educational

874
00:43:47.559 --> 00:43:49.840
grants to a bunch of people to fund their college.

875
00:43:50.840 --> 00:43:55.039
He's a very normal person who had Mega's success because

876
00:43:55.039 --> 00:43:57.760
he told himself a positive story instead of a negative one.

877
00:43:57.840 --> 00:44:00.760
He had a simple strategy that he pursued really lesslie

878
00:44:00.920 --> 00:44:03.199
if Theodore Johnson can do that. All of us can

879
00:44:03.239 --> 00:44:06.280
achieve worthwhile financial goals. We just have to start with

880
00:44:06.320 --> 00:44:08.920
the story, get that right, and then everything else will

881
00:44:08.960 --> 00:44:09.639
take off from there.

882
00:44:11.599 --> 00:44:14.840
That's a very powerful story. Thank you Michael for joining

883
00:44:14.960 --> 00:44:18.599
us and giving us so many powerful insights. I'm sure

884
00:44:18.639 --> 00:44:22.079
this is going to help our audience and I'm sure

885
00:44:22.119 --> 00:44:24.800
you're going to make your way to the book and

886
00:44:25.360 --> 00:44:28.239
take advantage of it. So thank you for joining us,

887
00:44:28.360 --> 00:44:34.519
and thank you, thank your listeners absolutely, and thank you

888
00:44:34.519 --> 00:44:37.119
to your audience for being part of our family. And

889
00:44:37.440 --> 00:44:39.920
let us know what else can we bring for you,

890
00:44:40.000 --> 00:44:43.320
because our goal is to support you and serve you

891
00:44:43.400 --> 00:44:47.000
so that you can live the best life you deserve

892
00:44:47.199 --> 00:44:49.960
and want. And thank you one for making the show

893
00:44:50.039 --> 00:44:55.239
possible technically, and be well and take care until next time.

894
00:44:56.199 --> 00:44:58.599
Thank you for being part of Beyond Confidence. With your

895
00:44:58.639 --> 00:45:01.440
host dvia Park, help, you have learned more about how

896
00:45:01.480 --> 00:45:04.000
to start living the life you want. Each week on

897
00:45:04.119 --> 00:45:06.920
Beyond Confidence, you hear stories of real people who have

898
00:45:07.039 --> 00:45:11.199
experienced growth by overcoming their fears and building meaningful relationships.

899
00:45:11.559 --> 00:45:14.960
During Beyond Confidence, Vpark shares what happened to her when

900
00:45:14.960 --> 00:45:17.400
she stepped out of her comfort zone. To work directly

901
00:45:17.440 --> 00:45:20.440
with people across the globe. She not only coaches people

902
00:45:20.519 --> 00:45:24.000
how to form HERD connections, but also transform relationships to

903
00:45:24.079 --> 00:45:27.440
mutually beneficial partnerships as they strive to live the life

904
00:45:27.519 --> 00:45:29.880
they want. If you are ready to live the life

905
00:45:29.880 --> 00:45:33.599
you want and leverage your strengths, learn more at www

906
00:45:33.719 --> 00:45:37.599
dot dvpark dot com and you can connect with vat

907
00:45:37.639 --> 00:45:41.199
contact at dvpark dot com. We look forward to you

908
00:45:41.280 --> 00:45:42.400
joining us next week.