The King's Hall - TradFi： Building Wealth in Traditional Finance with Joe Garrisi

00:00:00.000 Hey guys, Brian here with a big announcement from New Christendom Press.

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00:00:23.040 Pre-order it today at newchristendompress.com slash longhouse.

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00:00:30.900 We'll also be signing the first 1,000 copies, so pick yours up today.

00:00:39.760 This episode of the King's Hall Podcast is brought to you by Backwards Planning Financial,

00:00:44.420 Alpine Gold, Max D Trailers, Salt and Strings Butchery, Reformation Heritage Books,

00:00:49.740 Premier Body Armor, and by our supporters at patreon.com.

00:00:56.600 compound interest is the eighth wonder of the world he who understands it earns it he who

00:01:09.760 doesn't pays it albert einstein shoppers and employees alike at the dummerston vermont jc penny

00:01:17.200 took little notice of the man sweeping the floors ronald reed the store's janitor was clothed not

00:01:23.960 in the new clothes offered by the retailer, but instead was dressed in faded flannel shirts

00:01:29.820 and tattered jeans. He was merely part of the background. Ronald, or Ronnie as he was known,

00:01:36.880 grew up as an impoverished farmer. His childhood home was described as extremely tiny. He would

00:01:43.940 walk, or if he was lucky, would hitchhike to his high school that was four miles from the farm.

00:01:50.120 After graduating, Ronnie enlisted in the United States Army and served in World War II.

00:01:55.720 He was deployed in North Africa, Italy, and the Pacific Theater, where he reached the rank

00:02:00.700 of Technician Fifth Grade.

00:02:03.200 After the war, Ronnie returned home to Vermont and deployed his skills as a mechanic at a

00:02:08.860 gas station, where he pumped gas and wrenched on cars for the next 25 years.

00:02:14.160 On the surface, Ronnie was a good blue-collar man.

00:02:16.860 he married a widow with children and supported them well. He even paid for his stepchildren's

00:02:22.060 college educations. His wife tragically passed away when he was only 49 years old and he did

00:02:27.920 not remarry. He retired from the gas station for one year and decided that retirement was not for

00:02:34.160 him. After all, he didn't have a wife and his hobbies collecting stamps and coins didn't take

00:02:39.400 up much of his time. And that's when he became the part-time janitor at JCPenney, mopping floors and

00:02:45.240 cleaning toilets. He would drive his old car to his family's homestead to chop firewood to feed

00:02:50.600 the wood stove that heated his modest home. He daily frequented the Battleboro Memorial Hospital's

00:02:56.420 coffee shop and the local library. In 2014, after 17 years of employment at JCPenney,

00:03:03.300 Ronnie's health began to fade. He was admitted to the same hospital where he drank his daily

00:03:07.660 cup of coffee and died at the age of 92. Nothing seemed extraordinary about Ronnie Reed. He was a

00:03:15.660 farm kid, World War II vet, mechanic, and janitor. But when the attorneys looked at his will,

00:03:21.600 they were astonished. Ronnie was a millionaire worth nearly $8 million, much of which was in

00:03:29.240 stocks. Ronnie's family, friends, and neighbors had no idea that he had been actively investing

00:03:36.720 in blue-chip stocks since the 1950s.

00:03:40.160 They had seen a man with fraying denim jacket

00:03:42.820 with safety pins holding it together.

00:03:44.860 One time, a man bought his breakfast

00:03:46.640 because they assumed he couldn't afford it

00:03:48.340 due to his derelict attire.

00:03:50.700 Ronnie was even known to park his 2007 Toyota Yaris

00:03:53.880 far from his destination

00:03:55.360 because those spaces didn't have parking meters.

00:03:58.460 Everyone assumed he was poor, but they were wrong.

00:04:02.580 Ronnie owned shares in Pacific Gas and Electric,

00:04:05.520 J.M. Smucker, CVS Health, Johnson & Johnson, Procter & Gamble, J.P. Morgan, GE, and Dow

00:04:12.260 Chemical. He focused on stocks that paid generous dividends and used those dividends to reinvest

00:04:17.500 in more stocks. When he died, he owned shares of 95 different companies in healthcare,

00:04:23.820 telecommunications, utilities, rail transport, banking, and consumer goods.

00:04:29.340 Ronnie stored his stock certificates in a safe deposit box at the local bank.

00:04:33.600 His library reading comprised of the Wall Street Journal and Barron's.

00:04:39.100 Despite his paltry salary, Ronnie amassed a substantial fortune.

00:04:43.920 In his will, he left $2 million to his stepchildren and $4.8 million to Battleboro Memorial Hospital

00:04:50.240 and $1.2 million to the Brooks Memorial Library.

00:04:55.120 The King's Hall podcast exists to make self-ruled men who rule well and win the world.

00:05:00.300 Well, gentlemen, welcome to this episode of the King's Hall podcast.

00:05:05.300 I'm your host, Eric Kahn, joined by two kings, Dan Burkholder, who probably, you don't look

00:05:11.280 quite as shabby as Ronnie, but hey, I have a feeling that you're Mr. Moneybags somewhere

00:05:19.560 deep down inside.

00:05:20.540 You don't have to, you don't have to disclose this is a friendly environment, but I'm just

00:05:24.440 saying, look, I've dug holes in his backyard at night.

00:05:27.500 I have been looking for a stash.

00:05:30.300 He has gold bullion somewhere hidden.

00:05:32.100 I'm not as good at Ronnie at keeping secrets.

00:05:34.900 You would know.

00:05:35.720 There would be signs.

00:05:37.040 There would be signs.

00:05:38.220 I'm looking at a pair of ostrich show boots over there, sir.

00:05:41.960 Come on.

00:05:43.100 That he got at half price. 0.78

00:05:44.280 You dog.

00:05:45.100 Ah, that's true.

00:05:46.460 Brian Sovey, welcome to this episode of the King's Hall podcast.

00:05:50.360 If anybody was going to teach me about wealth, it would be you.

00:05:53.060 Because you're so jovially wealthy.

00:05:55.800 Wow, thank you, Eric.

00:05:57.220 In spirit.

00:05:57.800 Um, I was going to say this, this guy, like I was with the whole, you know, I got where

00:06:02.940 the story's going until they talk about his flashy 2007 Toyota.

00:06:08.420 What a, I mean, people should have figured it out with a car like that.

00:06:13.480 What year is the escort?

00:06:14.780 It's a 96.

00:06:15.680 I mean, it's from a different millennium.

00:06:17.060 Okay.

00:06:17.960 You know, it is interesting because I like to drive my 99 four runner and when my son's

00:06:22.540 right in it, they're learning how to drive and they're like, dad, how come when you hit

00:06:26.180 the brakes it like yanks to the side is there something wrong with it and i'm like no son

00:06:30.140 cars from this era that's how they function yeah it's doing what it's supposed to it's doing you

00:06:35.540 got to hold on with both personality it takes skill to drive it's a driver's car yeah that's

00:06:40.580 what that's what they say my car i know if i push the air conditioning button which is an analog

00:06:44.840 button i appreciate that it bogs the engine down so far that it can no longer climb even a one

00:06:50.900 percent hill and so this car you roll the windows down it's called personality it's a flintstone

00:06:55.300 car you gotta put your leg out the side and kind of kick a little it's getting close it's getting

00:06:58.980 there gentlemen in this episode we're talking about long-term wealth building and this is maybe

00:07:04.220 one of those where it's not as just spicy right it was like the guy wins the lottery or you know

00:07:11.400 whatever we have this story of ronnie and he's just dan basically a guy who is frugal and he

00:07:17.520 saves over the long haul kind of reminds me of my grandparents generation yeah they live frugally

00:07:23.820 they knew exactly what that meant you know my grandparents would tell me stories about world

00:07:27.460 war ii and grandpa would talk about how you had to flavor or you had to color your own butter and

00:07:32.440 uh there's rations and stuff like that so people got used to frugality

00:07:36.420 and kind of not as commonplace in our day no no i like to live generally by the old adage you've

00:07:42.880 got to spend money to buy things but that's not quite what this is about no i think especially

00:07:49.740 with social media and even while even our story that we we told a few episodes ago with the uh

00:07:56.840 with roaring kitty you know all of yeah all of the game stop bros that on reddit that decided

00:08:03.380 to buy in and and within a couple of months some of them were millionaires you know it's just like

00:08:08.020 that's a quick quick hit it's much more exciting than the story that we just read where this guy

00:08:13.820 is like he's a millionaire but he's going to his old family farm to cut wood to heat his home you

00:08:19.740 know it's just not as it's not as sexy if you will he's a perfect picture of proverbs 13 11

00:08:25.040 that wealth gained hastily will dwindle but he who gathers little by little will prosper you know

00:08:31.520 it's like perfect illustration of that biblical principle which isn't teaching that anybody who

00:08:36.840 ever gets rich quick sinned but that as a principle you want to do it that way not

00:08:42.860 the roaring hello kitty hello kitty no roaring hello kitty roaring hello kitty that'd be a

00:08:48.300 different thing you know you know don't don't plan on that working is it would be another way

00:08:53.500 putting yeah putting it like don't ape into gme stocks and then you know diamond hand your way

00:09:00.020 to the moon most of the time you'll diamond diamond hand your way to poverty yeah well you

00:09:06.360 you will it's interesting too because i remember years ago taking like you know some financial

00:09:11.480 planning type courses. They'll all go through it. And they're like, the average person who makes,

00:09:16.720 I don't know, at the time, it was probably like 50 or 60 grand a year. They're probably equating

00:09:21.000 that you have two incomes for the home. But it's actually surprising how much wealth will pass

00:09:26.440 through your household in a course of time. Now, of course, cost of living is increasing and all

00:09:31.260 those things. But there is the reality that I think a lot of people should be encouraged

00:09:36.640 that you don't have to make a million dollars a year

00:09:39.080 in order to save money in the long-term

00:09:41.680 and to build wealth.

00:09:43.360 So this seems like, you know, Dan,

00:09:46.160 one of those stories that would encourage

00:09:48.460 just us everyday Joes to be frugal and to save.

00:09:53.160 As you look at the stories in Christendom, Brian,

00:09:55.240 I'm wondering, do you,

00:09:58.020 I mean, it seems like we see a little bit of both, right?

00:10:00.360 Obviously you could have gold rush type situations,

00:10:03.120 but there's also people groups and countries

00:10:05.700 that are just frugal and they wash their money and they're conservative on the balance sheet

00:10:09.540 and they build wealth slowly over time what do you think the important i guess just the

00:10:14.480 important lesson today from some of those stories in christendom would be on wealth building yeah

00:10:19.720 i mean first of all just last thing from ronnie don't donate your money to a library when you die

00:10:25.280 like that's a that's an l in the story he doubled the money to the library versus his kids like it

00:10:31.120 was i know they were stepchildren but still come on guys i mean like just the library that's it's 0.91

00:10:36.140 that ain't it like they're just gonna buy more bad books to ruin children and make them trannies 0.95

00:10:41.840 that kind of thing well and if i could i ignored your question all together that's perfect i love 0.57

00:10:45.960 it that's i do that all the time to dan um sorry dan i still love you one of the things that's

00:10:51.880 interesting is this kind of model that we'll get into with mr garrisee i think there's like

00:10:58.120 anything, there's ways you can use it well to bless your generations. And then this is probably

00:11:02.380 the one where there's also pitfalls, like giving $4 million, almost $5 million to the cat library

00:11:08.280 instead of your generations might be one of the pitfalls. But Dan, you could use this for really

00:11:14.120 good purposes as well. Yeah, absolutely. I read a quote in the beginning from Albert Einstein

00:11:19.460 about compound interest. Maybe it doesn't make sense with the story, but essentially what you

00:11:24.280 get in, you know, with Ronnie, what he did was just socking, you know, some money away in these

00:11:31.220 investments over time. 1950s was when he started investing. And so that's, you know, 64 years in

00:11:39.620 which he was essentially compounding off of those investments. And there's something called the

00:11:46.000 rule of 72, which is a calculation figuring out how long does it take to double your money

00:11:51.940 by taking the interest rate divided by 72.

00:11:55.280 And so if you got a measly 6.5%,

00:11:59.660 it takes about 11 years for you to double your money,

00:12:03.620 which is not very romantic.

00:12:05.620 But for Ronnie, that's six times he doubled his money.

00:12:10.240 So if it was 100, 200, 400, 800, 1,600,

00:12:15.180 you can see how that grows over time.

00:12:18.360 And so I don't even remember what you asked me, Eric.

00:12:21.240 yeah but well i guess what i want to tie it to when you think of the christendom level

00:12:27.120 is that the projects and the stuff that we're building like yeah people build these things

00:12:32.000 over 500 years right right so it's not like rome wasn't built in a day that's part of it i think

00:12:38.040 that can be some of the angst among like the current generation like we're figuring out for

00:12:43.220 the first time hey maybe our ancestors didn't do this very well and so you feel like well i got to

00:12:49.720 regain it all in one generation. Yeah. And you're going to set yourself up for frustration, right?

00:12:54.360 Right. And discontentment. I think those are things that go hand in hand. Instead of having the

00:13:00.040 Ronnie Reed method, which is, hey, how long does it take to double my efforts? Essentially,

00:13:06.500 if I do the groundwork now, if I am the janitor now, think about it through your generations.

00:13:12.280 If the Lord blesses you with kids and with grandkids and with great grandkids,

00:13:16.980 and you're able through the power of the Holy Spirit to actually pass on that vision to your

00:13:24.600 kids and that they continue to walk in the faith, like you've just multiplied your efforts over

00:13:31.580 time. And so this is a 500-year work. And so what we're doing right now, we're just trying to stop

00:13:38.260 the bleeding in a lot of ways, right? We're trying to stop the bleeding. And so you have these

00:13:42.880 conflicting emotions and frustrations because you look out at the world and you're like,

00:13:48.100 how do they not see things like I see them? This is really obvious to me. All you have to do is go

00:13:54.400 to Eric Khan's Twitter on any given day and you see a new topic in which people should actually

00:13:59.360 be thinking through like post-war consensus or the Crusades or feminism or masculinity or whatever

00:14:08.260 it is. And if, if you just followed like Eric's content and you, you're like, yeah, I'm convinced

00:14:14.460 of that. I think that's right. And you look out at the world and you're like, we're going the

00:14:17.760 opposite way though. Like, how do we even, how do we correct that? How do we have a long-term vision

00:14:22.960 when we can't even like the trajectory is going the opposite way. And so I think a lot of black 1.00

00:14:28.640 pill and discontentment can creep in, in the same way as like, if you invest in an account and you're

00:14:34.700 like six and a half percent on my thousand dollars. Like I'm never going to get a return on

00:14:41.120 that. And then you start taking astronomical risks and you start being dumb. You know, 0.99

00:14:47.920 I can really make things worse. And so I think it's really important, especially for young,

00:14:53.140 zealous men to temper their zeal, like a cutting implement, like a sword or a knife.

00:14:59.360 you're tempering that to harden it and sharpen it, not quench it, but to actually temper it

00:15:05.340 so that it can last, your vision can last for a long time. It can hold up to the durability

00:15:12.080 of use. And I think that's really important to have this idea of like, my interest is going,

00:15:19.060 the interest will compound. And so I have to do the small things now. And over time,

00:15:24.180 I'm going to trust in the Lord that his spirit will move and he will bless this work.

00:15:29.260 And so I think that's really how we have to think through some of this.

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00:16:12.460 Yeah, it's also interesting because of our era.

00:16:17.660 Even in the story, there's a change from the generation that came out of World War II to now.

00:16:23.760 Culturally, there's a change.

00:16:25.100 the, you know, what inflation has done has changed things. But one of the things that I've reflected

00:16:31.560 on, and I think Dan, it was you who told me this, there's all these different ways. And we've been

00:16:35.840 talking about how to invest your money. And at the end of the day, like if money was just sitting

00:16:40.900 in an account, it would be better that even if you had like a money market account, or if you had,

00:16:46.040 so I think part of this is like, these seem like unsexy, small things, but the whole point is it

00:16:51.840 adds up to something big in the long run even if it's like let's be honest it's a lot cooler if

00:16:57.400 you're like i started a business and like we're like 10 million dollars a month now well yeah

00:17:02.980 that would be way cooler than five percent interest on my high yield savings account but what we have

00:17:07.700 to understand on a metal level as well with investing in the trad fi world is that edits

00:17:11.960 it has bad there's parts of it that are fake and gay like absolutely yeah there's parts of it that 0.64

00:17:16.660 structurally are really problematic and we would hate and want to change. I don't want BlackRock 0.99

00:17:23.760 competing with single-family home buying, things like that. But at its best, what are we talking

00:17:30.540 about with TradFi, with stock investment? We're really talking about betting on something that

00:17:35.980 God designed humans to do working, which is I'm going to place a bet on human labor and activity

00:17:42.120 generating more than goes into it. So you get more than just an input output where I put in,

00:17:48.160 you know, a thousand calories worth of work in my day and I get, you know, a break even sort of

00:17:53.180 rate. You're betting that God made a world where man can go and dig materials out of the earth or

00:17:57.720 write lines of code or, you know, fill in the blank with a million different economic activities.

00:18:02.840 And he can actually multiply his fruitfulness and hire other people and the business can grow

00:18:08.700 and it can be profitable in a non-exploitative way,

00:18:11.500 in a way that helps everybody along the supply chain

00:18:14.880 can be blessed.

00:18:16.020 And this is an ideal picture.

00:18:18.040 But what you're doing in TradFi investing

00:18:19.680 is you're saying, I'm betting that God made a world like that

00:18:23.100 and that if I put my money on people doing ingenious things

00:18:28.900 and turning a profit on it over the long haul,

00:18:31.600 then I will be rewarded for that.

00:18:34.580 Because you're giving, let's say you take your $1,000

00:18:36.860 and you bet on a company. Well, ideally, they're taking that money. They're hiring someone with it.

00:18:43.400 They're developing a product with it. They're meeting some human need with it. They're serving

00:18:47.280 some community somewhere with it. And then they're rewarded for that with profit. And then you get to

00:18:54.660 share in that because you participated in it. And that's all wonderful. We have a temptation

00:18:59.980 in our kind of communist egalitarian age to have a default almost egalitarian impulse to say

00:19:08.680 like to be skeptical of all these things instead of just saying no god really did make the world

00:19:13.400 this way this is a good thing people can exploit it capitalism is real that's all we get it but

00:19:20.540 we should expect for exactly this thing to be how the world works because god told us it is

00:19:28.520 So I do think it's tempting to be so skeptical of everything in the world when it comes to

00:19:36.700 investment and finance that we end up making the mistake of like the mattress guy where he's like

00:19:43.120 just shoving his money in the mattress because he doesn't trust anybody, doesn't know what to do

00:19:46.040 anywhere. And I think I hope what people get from this series is multiple perspectives on probably

00:19:53.300 a multi-pronged strategy that if you take the biblical principles of discipline, self-control,

00:19:59.120 wealth gained slowly over time, and then you deploy some of these strategies from wise people

00:20:05.100 who have been at it a long time, that really it can make a huge difference in your generations,

00:20:09.800 like for generations in your family. You could be the starting point. A great blessing.

00:20:15.200 I think all of us can probably would appreciate it in the position we're in right now.

00:20:21.580 if all of a sudden you receive some sort of inheritance of $8 million,

00:20:26.560 for example, from, you know, our story,

00:20:29.020 like that would be monumental in my ability to execute the vision I have for

00:20:35.200 my community and family and church and the school and all of that.

00:20:39.320 And so, yeah. Cause you're not starting from zero, right?

00:20:43.620 You're able to take all that and then reinvest it in the next generation.

00:20:47.460 Yeah. Yeah.

00:20:47.960 especially if you have the perspective that this isn't my money.

00:20:51.520 It's not just for me to use,

00:20:54.060 but it's for me to grow.

00:20:55.900 And I'm responsible now to make sure that this is passed on to my

00:21:00.560 generations at the very least to keep it and ideally to grow it so that you

00:21:05.880 can bless future generations with that.

00:21:08.000 So I think,

00:21:08.820 I think that that's definitely a way that we should think through this.

00:21:11.440 The other thing I would like to say,

00:21:12.640 this is our last interview in this series on investing.

00:21:16.380 and uh feedback's always appreciated if you want more of this sort of content

00:21:20.960 uh if you didn't like this content would love to know that too uh we'll be returning back to

00:21:26.860 our crusades content our regularly scheduled yeah i don't know how to i don't know how to

00:21:32.040 break this to you guys but if you don't like this show be prepared for the next one because

00:21:35.560 we will stick vlad the impaler on you all i'm saying is i just want to like investing's great

00:21:42.180 and all that's great but can we talk about like i don't know conquering an enemy nation

00:21:48.380 someone cutting a horse in half what it's interesting too because i'm saying like can

00:21:53.400 we get there dude i'm 100 with you like look stocks are great i'm all for stocks can you

00:21:59.220 guys tell this was my idea this was my idea look can we can we talk about the portuguese conquest

00:22:05.760 of the end of a global empire through well here's the thing if you invest wisely and you become

00:22:10.860 unbelievably wealthy you can buy a whole drone army and you can cut as many things in half

00:22:16.060 perfect tie-in dan you could start a drone warfare security company and become the next

00:22:21.460 baron of the united states oh and if anybody is interested in doing that let me know i would

00:22:26.080 invest in that i would invest in it yeah it's actually a good tie-in brian mentioned this but

00:22:30.440 one of the things that we will be talking about is the portuguese and their empire building but

00:22:35.560 the final blow that crushed the islamic empire was not military so much as economic they were 0.96

00:22:43.440 able to sail around the muslim trade and then basically cut it off and also cut some heads 1.00

00:22:49.940 off in the process uh we'll get perfect that was a perfect transition perfect unlike most of your 0.98

00:22:55.080 transitions that are confident but have nothing to do with anything that was actually a really

00:23:00.020 good transition thank you you know good job a broken clock right twice a day dan hear me out

00:23:06.080 so we are going to be jumping into that content also really pivotal i think it's it's caused a

00:23:10.500 lot of helpful and some not so helpful conversation on the tweeter bird uh now x uh but i think more

00:23:17.020 and more people are cognizant of this idea of a different kind of christianity than sort of the

00:23:22.480 pietistic drivel we have today the question of what is a christian hero i think is changing

00:23:30.240 uh dan you mentioned post-war consensus uh we'll probably be bringing up some of that

00:23:34.740 as well so we encourage people to check that out be sure to sign up on patreon as well because you

00:23:39.600 get a lot of exclusive content yeah we are just loading people down with content if you've been

00:23:46.780 missing people cutting horses and half content it's just because you're not on patreon yeah i

00:23:53.160 mean i mean let's be fair we've done henry the navigator uh that's one of the also guys this is

00:23:58.280 a this is a logistics note about patreon if you sign up do it on a computer oh don't do it on the

00:24:04.200 app because starting in like november uh apple is going to be adding a 30 up charge to all of it

00:24:10.160 and you get nothing extra if you just sign up on the no it basically just means website 30 of that

00:24:15.520 cost that you would spend goes to apple goes to apple and not to goes to china not the people

00:24:20.080 making it or i mean apple same thing how do you figure oh okay i mean fox foxconn basically same

00:24:26.080 difference yes so if you do sign up on patreon be sure to do that on the patreon desktop yeah open

00:24:32.460 up your computer go to patreon.com slash whatever it is king's hall something like that i should

00:24:37.740 know this it's in the description and final plug i will say you can sign up for next year's

00:24:43.120 conference brian it's going to be here before you know it and we're going to be talking about

00:24:46.860 some amazing things there's going to be some amazing speakers i mean you have not heard

00:24:52.060 anything like what you were here this tremendous can i just say huge one of the speakers dan will

00:24:57.560 be brian suve wait are you serious i get to speak at the conference you get to speak the way you

00:25:03.960 were talking i was like is he gonna say donald trump can you imagine can you imagine no something

00:25:08.760 i don't let's try to get him dude we'd be a good get he will probably he will either be president

00:25:14.340 or not we can't afford it no he'd do it pro bono because he believes in us actually i'll be honest

00:25:20.440 with you guys if i could get anybody it would be hulk hogan okay hulk tucker trump that could

00:25:26.500 basically the lineup is not going to be but could be those people so sign up and you should do that

00:25:32.440 now because the pricing goes up like every couple months so jump on now and you get the same

00:25:39.000 potentially hulk hogan donald trump tucker carlson experience that nobody's going to get

00:25:44.120 uh early this year dan has to you have to do the hulk hogan you have to rip one of your shirts off

00:25:48.940 i'm sorry please have a shirt on underneath though you will he will he will it'll be totally modest

00:25:53.560 we'll bring back the show me your body dan no no no we can forget about that this has gotten uh

00:25:59.800 it's time to go to the interview. It's derailed. We're going to jump now into the interview with

00:26:03.780 Mr. Joe Garracy from Backwards Planning Financial. And until you hear from us again,

00:26:08.840 Festin Alente, make haste, slowly.

00:26:21.820 Well, welcome to this episode of the King's Hall. Today, I'm joined by a very special guest. You've

00:26:26.020 I've heard his advertisements and podcast interviews before in our new Christian and

00:26:30.820 press ecosystem, including the King's hall. I'm joined by Joe Garracy today. Thanks for joining

00:26:35.800 me, Joe. Thank you. Thank you. It's great to be here again, Jan. Good, good. So Joe,

00:26:40.980 what we've been doing through this whole finance series, this investing series is exploring the

00:26:46.460 idea. You know, if I, or one had a hundred thousand dollars, I was just laying around.

00:26:51.180 We don't have any investments. We don't have, you know, any assets or anything like that. And inflation is unprecedented at the moment, maybe only rivaled by by the 80s or something like that. Some period before I lived. And, you know, this is happening worldwide is that inflation is just run rampant. And so the silent theft of inflation is decreasing the buying power of the cash you hold on hand.

00:27:16.820 So what's the average man supposed to do with their hard-earned dollars that's already been taxed, by the way, through income taxes and other things when trying to preserve the buying power of your cash?

00:27:29.380 One thing that we've encountered a lot as younger families move here into Ogden, Utah, housing prices continue to rise even with high interest rates on homes to the point where it's not really realistic for people to buy homes in this area.

00:27:47.180 families are struggling even to buy food insurance costs continue to skyrocket and everything that

00:27:54.840 we actually make that we bring in as far as dollars continues to be taxed at greater burdens

00:27:59.620 even with you know the election looming and the idea that maybe there will be a taxation on

00:28:05.840 unrealized gains which is absolute insanity maybe we can get into that later horrific but there's

00:28:11.860 also things like a looming employment crisis. Maybe people don't understand what's happening,

00:28:17.820 but with the advances in AI and super intelligence and computers and things like that, a lot of work

00:28:25.980 will be transitioned into AI. And Brian Sauve, he just did a podcast with Tim Poole on some

00:28:37.720 simulation theory, nonsense, whatever, but they talked about AI a lot and how rapidly it's

00:28:42.580 advancing in that within three years, you can expect this employment crunch to be possibly

00:28:48.460 hundreds of millions of jobs. And so the question is, what is the answer for the future of making

00:28:54.440 and securing wealth? Where does this all end? And do the old ways of wealth management still work?

00:29:00.100 do the well-beaten path of investing in stocks and bonds and in different forms of insurance

00:29:09.380 and things like that still work today and looking to the future. And so we've already talked about

00:29:15.400 Bitcoin, about real estate and about gold and precious metals. And so what I wanted to do was

00:29:22.460 to talk to you about your expertise in what I call traditional financing, but what is stocks

00:29:31.140 and bonds and all of those different products, ETFs and mutual funds and the stock market,

00:29:38.060 all those crazy exciting things. So Joe, why don't you introduce yourself, tell us what you do

00:29:43.140 and why should we listen to you? Sure. Okay. So a little of my history,

00:29:51.660 Although I've said some of this, I'm going to try to include new things from our previous

00:29:55.200 podcasts.

00:29:56.360 But first of all, I grew up in Southern California, like so far south that I could see the lights

00:30:01.560 of Tijuana at nighttime.

00:30:03.640 So I grew up with Baja Mexican food, which I love.

00:30:08.080 Therefore, you should then deduce I do not like Tex-Mex.

00:30:11.600 Tex-Mex is not real Mexican food.

00:30:13.460 For those that say this, they're just wrong.

00:30:15.740 But I grew up very close to Canada.

00:30:18.020 I have no opinions on this.

00:30:19.360 so i love some of my deep love is carne asada real carne asada mate and so i've been enjoying

00:30:29.120 smoking meats on the smoker here at mom more and more getting into that and uh yesterday actually

00:30:36.120 for dinner we made a rack of pork ribs dry rub pork ribs is what we had for dinner but um that's

00:30:42.660 a whole section of food and that's not even what the topic was today real meat and the scam of

00:30:49.300 the food pyramid and all kinds of different things we can talk about for fun.

00:30:54.520 Yeah. Yeah. That'd be great. But okay. So I grew up playing soccer,

00:30:59.360 started playing soccer when I was three years old,

00:31:01.540 played throughout my scholastic years. I really enjoyed it.

00:31:04.400 I'm short compared to the average guy.

00:31:06.600 And so I had to be fiery and fast and with an extreme aggression of not being

00:31:12.520 willing to lose.

00:31:13.860 And so that's how it became excellent in sports of just having some strong

00:31:17.900 tenacity and brought that out to me. And I really enjoyed the opportunity in the sports world to go

00:31:24.680 do that. My family was poor. My dad was a pastor in an OPC church. He started the church from

00:31:31.440 scratch. He was the plank owner in Navy terms, or they have the picture with him breaking the 0.98

00:31:37.300 ground, et cetera, there in Bonita in San Diego, which was one town over from Bayview OPC, those

00:31:45.880 in the post-mail world should know that church. That's where Greg Bonson was an elder at during

00:31:50.900 his time in the OPC. So I knew him and his family and et cetera lightly during that time. But my dad

00:31:58.220 worked full-time as a pastor. And so, Dan, from your position as an elder, he had himself and

00:32:04.440 one other elder for 100 people. He taught Sunday school, preached Sunday morning, preached Sunday

00:32:09.500 night, and led things in the middle of the week. And then he had to have another full-time job so

00:32:14.520 that we could have the basics. And I mean the basics, like just eating oatmeal and having food

00:32:18.880 and basic clothing and type of stuff. We qualified for free food at the government. So we would go

00:32:23.840 get the free government food. So we'd have food type of stuff. So it was, Hey, if you want anything,

00:32:29.220 you got to go to work. Well, I was homeschooled for about half of my time. Both of my grandfathers

00:32:33.960 were wealthy business owners. So I saw the, Hey, you can go out into the world, use that tenacity

00:32:40.800 to go make yourself something. And they encouraged me and showed me opportunities and et cetera

00:32:46.040 on that. So I grew with that possibility. And my dad wanted to be a business owner.

00:32:51.300 And so he actually owned five different rental units. So I learned the rental industry

00:32:57.520 in a direct relationship as in we were the repairmen. So I learned basic plumbing and basic

00:33:05.580 repairs and painting and all kinds of things as in, hey, we need to actually make this positive

00:33:13.220 financially. And I saw the intensity of it, hopefully get more into that later on on real

00:33:18.260 estate. My personal experience, here's the short version. I don't own any real estate rental right

00:33:23.660 now. So now you know where I'm going to go on that. I own all the other things you talked about.

00:33:30.040 I don't own that type of thing.

00:33:32.580 Yes, I do own Bitcoin.

00:33:33.640 Yes, I do own gold on my own stuff.

00:33:36.340 So grew up playing sports, grew up aggressively going after income.

00:33:41.540 I'd ride the bus when I was 14.

00:33:43.860 I think I was 14, rode the bus in the morning before.

00:33:46.400 It grew light to go work at a fast food place and came home and went to school.

00:33:50.400 It was intense, but also intensity and trials helped me learn to be able to go get what I wanted.

00:33:57.660 Put that fire in my belly, which it really was an opportunity.

00:34:01.000 And so when I'm talking to other parents and et cetera,

00:34:03.940 is don't withhold pain from your kids, obviously with barriers,

00:34:09.560 but don't try to make this a pain-free environment.

00:34:11.700 They learn through pain.

00:34:13.360 The reason why I got into the actual traditional finance,

00:34:16.680 TradFi, I feel cool now.

00:34:18.760 I'm using the term TradFi.

00:34:22.140 By the way, I never learned this term until listening to you guys.

00:34:24.900 I went to others in my industry. Hey, you ever heard of this, this TradFi? And they looked at

00:34:30.000 me like, what in the world are you talking about? What is TradFi? So we saved all kinds of time now

00:34:36.960 because we shorten these words here. My Gen X generation, we don't shorten words. We text in 0.53

00:34:43.280 full sentences. In other words, it's fun. So the short version, I was supposed to inherit a lot of

00:34:49.480 money when I was a senior in high school from my deceased grandfather on my mom's side.

00:34:56.180 And through technicalities, I got nothing, not because of my parents.

00:35:00.520 My parents got nothing.

00:35:01.820 My cousins and sisters and brothers got nothing because of a technicality and how things were

00:35:07.240 titled and how the estate plan was put together.

00:35:10.040 And so that really just fueled a fire in me to go learn myself originally for my own family.

00:35:16.300 And then another aspect of this was when I was in high school, going into college, my dad was trying to help me understand, hey, what am I good at?

00:35:24.140 Where should I go in careers, in life?

00:35:26.860 And he, even though he's severely tight financially, paid for an exhaustive list of testing in my abilities.

00:35:35.940 And so I went to this testing center.

00:35:37.420 I think it was about a full day for nonstop of testing.

00:35:39.880 And at the end of the results, the owner who'd been doing this for over a decade, what I remember them saying is they've never seen someone ever have a perfect score in abstract thought until working with me.

00:35:53.460 And so I just had a natural ability of enjoying abstract thought.

00:35:57.460 When I was in college, I loved the philosophy classes because I just love my brain just twisting and turning in all different ways.

00:36:04.800 To me, it was enjoyable on that.

00:36:07.100 So I got fueled into the fire of the world of finance by getting treated dishonorably.

00:36:14.420 And then my natural ability of how things twist and turn and try to solve those financial

00:36:18.840 puzzles.

00:36:19.480 That's the short version of how I got into this.

00:36:22.040 I didn't actually start into this field until mid-career.

00:36:26.860 I was 38 years old when my wife said, hey, she was working as an admin in this field.

00:36:32.040 She saw the other people here and said, Joe, you'd run circles around them.

00:36:35.300 You do this as a hobby. Why don't you actually go do this full time? That was the catalyst.

00:36:40.440 Before that, I ran a manufacturing floor, had many, many employees. Before that, I was in the

00:36:47.260 army and did all kinds of fun shooting and strategic work and jumping out of airplanes

00:36:53.040 and trying to think abstractly what the enemy was going to do before they did it. So therefore,

00:36:59.100 we then can know how to counter it and be ready to counter it so it was an interesting work in

00:37:05.580 abstract thought and then direct leadership in what to do as people are disagreeing it's like

00:37:10.500 nope nope we actually need to go this way because they're going to do this and we need to be prepared

00:37:14.940 for it the proverbs say the soul of the lazy one craves and gets nothing but the soul of the

00:37:22.380 diligent is made prosperous with the aim of diligence i realized i needed help navigating

00:37:27.780 the world of tax efficiency and investment strategy. Time and knowledge were barriers

00:37:32.380 to these issues. I could either be lazy and merely crave knowledge of these things or utilize

00:37:37.180 someone specializing in tax and investment and life insurance strategies. That's why I work with

00:37:42.760 Joe Garrison at Backwards Planning Financial. His guidance empowers me to make informed financial

00:37:48.340 decisions and helps me to be diligent with my finances. Joe works with one of the world's

00:37:52.840 largest and most trusted financial service companies. He will customize a plan for your

00:37:57.180 specific needs, visit BackwardsPlanningFinancial.com. That's BackwardsPlanningFinancial.com

00:38:03.600 or call 615-767-2555 to speak with Joe to prepare for the future.

00:38:13.900 Hmm. Oh, yes. Hey, Dan, what are you doing? I'm just checking my mutual funds, my stock portfolio.

00:38:24.120 Mutual funds, stock portfolio.

00:38:27.020 What did Dave Ramsey tell you to do that?

00:38:29.340 Maybe.

00:38:30.260 Why?

00:38:31.240 How's your return looking so far this year?

00:38:33.680 Well, they just did come out with unemployment numbers and they're a little higher or lower

00:38:39.280 than I thought.

00:38:41.160 Ooh.

00:38:42.320 Well, have you ever thought about diversifying your portfolio into things like silver and

00:38:46.540 gold?

00:38:47.220 I mean, yeah, yes.

00:38:50.040 Well, you know, gold and silver are having pretty good years.

00:38:52.660 I mean, gold is up 20% in the last 12 months.

00:38:55.760 20%?

00:38:56.420 Yeah.

00:38:57.080 Have you ever thought of investing in it?

00:38:58.720 I hadn't.

00:38:59.500 How would I do that?

00:39:00.860 Really good question.

00:39:02.080 Just go over to the guys at Alpine Gold.

00:39:04.340 They're right here in Ogden.

00:39:05.560 They're members of Refuge Church, the church that you pastor.

00:39:08.220 You should know this.

00:39:09.360 If you give Alpine Gold a call, they'll talk you through the steps of how to move your

00:39:12.880 TradFi mutual funds and even things like IRAs into precious metals that you can use

00:39:18.940 to start building durable wealth.

00:39:21.000 Sounds great.

00:39:21.600 call Alpine Gold today or go to alpinegoldogden.com. Again, that's alpinegoldogden.com

00:39:28.840 and link is in the description below. America is built on the backs of hardworking

00:39:34.720 blue collar Americans. That's why we're so excited to join forces with Max D Trailers,

00:39:40.360 a Texas based and family owned company to bring you this episode. We're proud to partner with

00:39:44.800 Max D to see the vision of new Christendom established one small business at a time.

00:39:49.580 MaxD builds innovative, hardworking trailers for the builders, fixers and growers of the world.

00:39:54.380 You can follow their stories by checking out MaxD Trailers on Instagram or by visiting the link in the show notes.

00:40:00.140 Learn more about MaxD Trailers by visiting MaxDTrailers.com, where you can check out the article, 10 ways to make money with your trailer.

00:40:08.360 So I bring it into the financial world.

00:40:10.580 So what I do for a living is solve financial questions.

00:40:13.720 Why listen to me?

00:40:14.960 Well, I've done a ton of research on the labyrinth of tax laws and investment laws in tools, pros and cons and how they work together.

00:40:26.540 And so I use all of that incredible research with my enjoyment of abstract thinking to then give direct, concise recommendations to clients after we've had a full scope conversation.

00:40:39.340 so it's not just hey let me listen to you for 30 seconds or five minutes and here's what you should

00:40:44.960 do that is 99.99 almost never unless someone's very obvious to me in that situation so it's not

00:40:53.460 a fast food restaurant like you get combo meal number one number two number three there's guys

00:40:59.400 in my field that are like that and they drive me bananas well honestly some of the business uh the

00:41:04.060 businesses i've worked at before that have 401ks it's that's it oh right you yeah they'll give you

00:41:10.220 the employee match and you've got three options well typically four and one's just like bonds or

00:41:15.200 or whatever but anyway yeah the the not to derail you but continuing no no i run 401ks and i totally

00:41:21.740 agree uh how disappointing how few options i come across as i just actually took over a 401k from

00:41:28.860 another advisor. And one of the things was the lack of options for the employee. And so we were

00:41:35.000 able to bring in drastically more options without costing the employer a single dime. We actually

00:41:41.060 saved the employer money and brought more options to the table. It was really cool.

00:41:45.140 So what I enjoy doing is planning. So I call myself a planner, a holistic, integrated wealth

00:41:52.180 manager. I have two different credentials. I have letters before my name and after my name and

00:41:57.340 big, fancy schmancy stuff, but it really doesn't matter unless I do a good job.

00:42:02.120 So what I do is I go pester the heck out of of CFAs and attorneys and tax advisors,

00:42:10.780 and I become a pest to make sure I understand how they're thinking.

00:42:14.760 And then I bring that with the investment world to the table and bring ideas to my clients.

00:42:20.020 So I want to know about what they're trying to accomplish, where they're trying to go,

00:42:24.820 not just five years from now, but what about when they die, how they want things to look like,

00:42:29.660 what they want their families and kids to inherit. And what about grandkids,

00:42:33.660 your children's children, right? How do they want those to look like financially long-term?

00:42:39.280 And then what should we be doing today? What should the next three months look like because

00:42:43.840 of what we want their children's children financially to look like? And then what

00:42:49.020 insurance to buy because of that well how should we give money to a 501c3 or to a church or what

00:42:56.600 about debt and when to attack debt and not it and how to use debt right tim sixes talked about the

00:43:03.600 use of debt in certain ways and that can be appropriate for some and not appropriate for

00:43:08.760 others depending on willingness to and accumulate that risk whoo now when i listen to that i just

00:43:15.460 start getting the willies on some of it. So I love that he brings that intensity of the fighter

00:43:25.660 pilot back into this type of scenario and he's done well with it. So it's awesome. But I haven't

00:43:31.500 met him yet. I look forward to meeting him here in the future. Yeah, he's a really good man.

00:43:35.120 So I want to make sure that people's holistic picture works well now with how they want that

00:43:41.740 picture to look like in the future. Trying to understand that's where I named my company

00:43:45.860 backwards planning that comes from my military intelligence time. Hey, backwards from what you

00:43:50.780 want your future picture to be, and then therefore what to use now because of how you want it to be.

00:43:57.340 So think forward and then backwards. It's got to think both directions. And then we can have

00:44:03.160 understand, well, you know, how should you approach debt because of all that? How should your estate

00:44:10.580 plan be put together because of all that? How should your investments be titled? Okay, I was

00:44:17.080 just talking with someone earlier today about the titling of their joint account because they live

00:44:22.800 in a state that allows multiple different titling options that can add legal options, legal

00:44:30.360 protection if you title things correctly. Of course, they need to go talk to their tax advisor

00:44:34.480 and legal advisor before they execute. But I want to make sure it all works together.

00:44:40.060 That's holistic or that's integrated. Interesting. You know, in this series,

00:44:46.060 you know, we've talked about Bitcoin. You know, it's actually quite simple. You have one asset.

00:44:52.380 It's difficult to understand because it's a new technology, but it's just one asset, right? You're

00:44:58.400 buying Bitcoin. With gold, that one's pretty simple. You're buying gold, right? There's not

00:45:04.780 a lot of complexity to it. Even real estate, it's a high barrier of entry and it's really like

00:45:09.360 starting a business. And so that's really where the complexities lie. But ultimately, you've got

00:45:15.240 a single asset. With what you do is essentially, it's a completely different ballgame because

00:45:23.000 it. You can have REITs, you know, where you own real estate, you know, through, through your

00:45:29.120 markets and you can get gold and you can get Bitcoin and all those things. And so I guess,

00:45:35.360 how does this all work? What is the value proposition of what you do? I know that's a

00:45:41.080 really big question. And just as a side note, Joe has credentials, he has licenses. And so

00:45:48.380 a lot of what he says had to go through compliance and so he has handcuffs that nobody else does

00:45:53.880 so just be aware of that when we start this conversation is that uh because uh joe has all

00:45:59.800 these uh regulations surrounding his career field um those are a little bit of a handcuff so thank

00:46:06.340 you that being said yes traditional finance how does this work um what's the value proposition

00:46:12.420 yeah and just to back up what you were just saying before and the reason why i have those

00:46:17.480 regulations is because I take clients' money and I invest it on their behalf. So for the clients

00:46:24.100 that I do that in a fee-based manner, I'm a fiduciary. Fiduciary literally says I must do

00:46:28.960 what's in the best interest of my clients. So I have to do what's their best interest, not mine,

00:46:34.600 both short and long-term. I have to be available for questions, have to be available when the

00:46:39.540 markets change and they worry or they want to do different things and discuss in a holistic manner

00:46:46.040 on the rest of their life, what's going on with their kids and et cetera. So I have to be ready

00:46:50.840 to discuss that holistically for the money that we manage and answer questions. Uh, so to me,

00:46:56.700 that's fun, by the way, if you, you've ever seen like a YouTube video on a, on stocks or crypto

00:47:03.120 or whatever, and they preface it by saying, this is not a financial advice, which by the way,

00:47:07.520 doesn't really cover you because based on the number of lawsuits that I've seen, you know,

00:47:11.960 they're not financial advisors anyway so yeah joe is a financial advisor thank you thank you um okay

00:47:20.180 so let me actually go into some uh definitions first i always like definitions of of terms like

00:47:26.300 we were just talking earlier trad fi definition of what that is okay so currencies they're actually

00:47:31.340 different kinds of currencies okay so so a term that has been good to understand that if you

00:47:38.480 outside of, of this circles here of new Chris and the press, if you use the term fiat currency,

00:47:43.220 most people think you're a weirdo. They don't even understand what that is.

00:47:46.880 So you guys have talked about, man, I live in an insulated bubble.

00:47:51.140 Yes. You big time. Like when I was, when I keep saying trad fi and then I talked to Joe this

00:47:55.620 morning, he's like, I had no idea what that meant. Nobody did in my circles. I'm like,

00:47:59.200 seriously, it's trad fine. DeFi. Everybody knows this. It's like, no, no, they don't. Anyway,

00:48:03.540 continue fiat you were talking about fiat yes yes like you guys have talked about before right fiat

00:48:09.540 is just a declarative statement it shall be uh right and one of the things is we need some type

00:48:15.680 of currency we need a currency right because if uh you want to give me money over multi-states i'm

00:48:23.320 in florida you can't send me chicken eggs right from your chickens right we've got to have some

00:48:27.980 type of medium of currency to use. So we've got to have something. So a fiat currency really is

00:48:34.400 just a currency that doesn't have an asset behind it. That's it. Gold, I would suggest,

00:48:40.660 is an actual currency because it is its own set, but it has intrinsic value. Gold has intrinsic

00:48:46.860 value. So it's its own currency. There's also a representative currency. Representative currency

00:48:54.320 would be like a stock certificate or a deed to a house, right? It has an asset behind it.

00:49:02.060 So it represents a hard asset. So I wanted to start there because I had to make sure that we

00:49:09.820 use the right terms when we're discussing things. By the way, the book you guys refer to over and

00:49:15.220 over again about the creation of the Fed was introduced to me about 25 years ago. This is

00:49:21.760 something that was not taught in schools right uh it's not taught in my industry by the way

00:49:26.700 the formation of the fed is not taught in my industry which is crazy you would think um but

00:49:33.700 actually i'm not unfortunately but

00:49:35.760 i in my question in thirst for scraping of knowledge everywhere i can find it um drives

00:49:44.720 me bananas when my my folks in around me are not the same way of aggressive uh going after that

00:49:50.860 Okay, so TradFi, I'm cool, or the stock market.

00:49:57.960 So what is the stock market?

00:50:00.240 So the public stock market, that's a better term, public stock market, because everyone

00:50:08.040 in the public has access to it.

00:50:09.580 You should then think, ooh, there's maybe a sneaky one out there.

00:50:13.580 But there are other stock markets in the alternative space, and maybe we'll get into that.

00:50:20.220 But the public stock market, because everyone who has, let's say, 10 bucks can go open up an app and buy something in the stock market, is primarily two tools.

00:50:29.160 Everything is a variation, really, of two tools, a stock and a bond.

00:50:32.940 A stock is a minority ownership in a business, and a bond is a loan.

00:50:37.500 So, companies that are on the stock market, typically, for the stuff that we use, the smallest out there would be a small cap fund.

00:50:49.160 Small cap, small means the company is worth, typically, a minimum of $800 million.

00:50:56.520 So, this is not your mom and pop store that goes public and sells shares.

00:51:01.300 Okay, cap, when you see the word cap in the market, it means capitalization or what's

00:51:07.220 the value of the company, which how do you find that out?

00:51:09.900 You multiply the number of the shares by the price of the share.

00:51:12.260 You can see the capitalization of the company.

00:51:14.480 What's the current value of that?

00:51:16.780 So small cap typically is $800 million to $2 billion, mid cap is $2 to $10 billion, and

00:51:22.480 large cap is $10 billion plus with nothing on top, everything above that.

00:51:26.980 So those are the different spaces in the marketplace for people to use.

00:51:33.260 So we use stocks and bonds.

00:51:37.200 There's international, there's U.S.-based, there's commodities, which we get into commodities, which is oil and gold primarily, but lots of others.

00:51:47.200 We get into real estate, like you mentioned, REITs.

00:51:50.180 There's public and then there's in the alternative space in almost every sector of this.

00:51:56.040 So we use these tools to help people grow wealth on this.

00:52:02.300 OK, so what is traditional holistic wealth management?

00:52:08.440 Well, I want to look at all everything.

00:52:10.820 What are the goals people trying to have?

00:52:12.540 Not just what to invest into, but also what contingency plans people should have.

00:52:17.400 So I don't expect any asset to grow in a straight line.

00:52:22.660 It hasn't in the past.

00:52:24.120 It's not going to in the future. And to assume that is too flowery, too perfect of planning,

00:52:31.140 and it doesn't actually work. So I want to make sure that we have contingencies planned for.

00:52:35.860 Well, there's health contingencies of people dying or being disabled or long term care events and

00:52:40.320 how to cover those. There's contingencies of inflation. There's contingencies of tax volatility.

00:52:47.640 There's contingencies of when you lose a job or forced out of.

00:52:52.920 And it could be not just because of the work we do.

00:52:55.600 It could be a business closing down.

00:52:57.960 That's happened to me in the past.

00:52:59.660 A business closes down around me and now I'm scrambling.

00:53:03.180 What do I do next?

00:53:04.460 From industries change to laws with industries change with like you were saying with AI will take some jobs away.

00:53:11.180 I have clients right now struggling and seeing that on their near future and they're going, what do we do?

00:53:16.040 This is new.

00:53:17.020 We thought that our industry would be in perpetuity.

00:53:19.940 No.

00:53:20.880 You know, what's really interesting about that, Joe, is that with the other investments

00:53:25.440 that we talked about, they're just an investment.

00:53:27.540 That's you're buying an asset of some sort and hoping that the value goes up.

00:53:32.000 Even real estate is a productive asset.

00:53:33.660 So you're getting returns while the asset is going up.

00:53:36.020 But what you're doing is there is an element of that.

00:53:39.800 Obviously, you want to grow your investments, but you're really doing risk management.

00:53:44.680 Yes.

00:53:44.820 That's what you're talking about with a lot of this, right, is risk management.

00:53:47.900 Correct.

00:53:48.160 What are the contingencies?

00:53:49.560 Loss of job, loss of health, loss of ability to work, you know, all of these different

00:53:53.700 contingencies, death of a spouse, death of a child, disability of a child, like all of

00:53:59.040 these things.

00:53:59.500 So you're talking about risk management.

00:54:01.260 Yes.

00:54:01.580 This is way different than just buying gold and holding on to it.

00:54:05.300 That's correct.

00:54:05.920 That's how I, why I believe planning is so important.

00:54:09.460 and actually dan the the first podcast you and i did on taxes is my by far my favorite subject of

00:54:16.220 anything of all the stuff i talk about taxes is taxes yes because i hate them yeah so therefore

00:54:25.760 i want to legally not pay them and i love and i'm gonna steal some words uh some verbiage from tim

00:54:32.120 from tim six so the the tax law is a book of incentives those that's vernacular i believe

00:54:38.540 he used in his podcast, correct me if I'm wrong, which I think is great, is to try to understand,

00:54:44.720 look, these are incentives that are put in. And so therefore, the most efficient line is not a

00:54:51.580 straight line. And so therefore, how do you be efficient? Are we called to be efficient? Are we

00:54:56.460 called to be good stewards? Is part of being a good steward being efficient? Yes, I would say so

00:55:01.560 very much. And so therefore, it's not being simple in what we're doing. So therefore, we have more

00:55:08.000 we can do. One of the reasons we should have more to do is so therefore we can bless our children

00:55:13.260 and children's children, but also bless those around us, right? We are given blessings so that

00:55:17.900 when people come into our place with needs outside of them being lazy, we should be able to help them.

00:55:24.980 Well, to be able to help them, we need money, right? Based on one of the talks there in your

00:55:29.880 conference, right? It takes money to be able to help other people. It takes money to accomplish

00:55:34.840 these things. And so, yes, we should save for contingencies. And then we can take advantage

00:55:42.720 of opportunities if we do so. So setting yourself up to take advantage of opportunities is how you

00:55:50.000 make great leaps and bounds on wealth accumulation. And that's one of the things that I enjoy doing

00:55:56.720 for clients is being able to take advantage. So let me rabbit trail into this as an example.

00:56:01.120 Well, in 2020, when the market crashed, I was begging my clients to put money into the market.

00:56:07.160 Colin, please find some money somewhere.

00:56:10.780 Not everybody can do that.

00:56:11.680 But when those that did doing reviews later afterwards with them, you could tell the smiles on their faces.

00:56:18.020 The returns were glorious because of that.

00:56:21.240 So when the market crashes, it's not a bug, by the way, when the stock market crashes, part of the feature is how it's put together to crash.

00:56:29.140 when it crashes most often in arrears, it's been because of emotional things, not only because of

00:56:37.220 fundamentals. Of course, there are fundamentals inside there, but a lot of them are because of

00:56:41.460 emotional that make them deeper and take advantage of that. Yeah. One thing I've heard about looking

00:56:46.860 at a chart on the stock market, you know, you open trading view or whatever your Charles Schwab

00:56:52.040 account and you look at a chart. A lot of people, you know, I'm sure it's foreign to them or maybe

00:56:56.860 they have never done this, but I have. And one person said, correct me if I'm wrong. You don't

00:57:02.780 get variations in price. Like a very volatile stock right now is Tesla. Yes. It went from 141

00:57:08.680 to like 285 in just a couple of weeks. And now it's back like $200. You know, it's just like

00:57:14.160 up and down, up and down. Well, nothing really changed with Tesla. Like the value didn't really

00:57:19.440 change. What you're charting is human emotion. It's not, otherwise it would be stair steps,

00:57:25.400 right that's right they opened a new line of their business they reported revenues you know

00:57:29.760 stair step up up they lost money stair step down what you're charting is human emotion yes and so

00:57:34.860 the crashes are just amplified fear and then the spikes are amplified greed is that correct yes

00:57:42.680 yes absolutely yeah understanding we can rabbit trail into where are we now i think that's part

00:57:49.740 of the other talks where are we now this is a perfect time where are we down with the stock

00:57:53.840 market? Well, if you if you track P.E. ratios, price to earning ratios in large cap, we're above

00:58:00.540 normal. OK, small cap, mid cap P.E. ratios are lower than normal. Explain to us what price to

00:58:08.340 earnings price to earnings. You know, it's pretty simple, but I don't think people probably know

00:58:12.220 what that is. Yeah. So the stock market, the stocks portion of the stock market is always

00:58:16.880 trying to say, to tell one story or to discover one story. And that is, what does the future look

00:58:23.980 like? And then bring that back to today. That's what the stock market is always trying to say.

00:58:28.980 So when you look at a company, the price compared to the earnings, the earnings of a company

00:58:35.400 compared to the price it's selling for, it's most often a multiple. So how many years in

00:58:41.780 advance? Are we assuming growth and what kind of growth for that company? Like we can look at

00:58:47.020 NVIDIA right now. The PE ratio is wildly high compared to a normal S&P 500. S&P 500 is large

00:58:55.060 cap or blue chip. Those are three names typically for the same thing. Why do they use three names?

00:59:02.980 Well, they are the same thing. It may be to tend to confuse people, but I don't know exactly why.

00:59:07.980 So if you look at historical P.E. ratios compared to they are right now, they're always changing. But when you look at an industry section or a whole capital section and you see trends, then you can deduce, well, what has happened in the past when trends happen like this?

00:59:25.480 Well, also, you can look at there are jobs being lost right now in the industry across across the whole U.S. and across the the country and across the whole world on that.

00:59:39.620 And where are they losing? Not in W-2s so much yet. 1.00

00:59:43.100 And these are in the contract labor. Contract labor is actually losing.

00:59:46.240 And historically, that's where jobs have been lost first before they go into the W-2s.

00:59:50.500 Um, so it looks like with big air quotes and all kinds of maybes here that we're towards

00:59:58.780 the end of a market cycle.

01:00:01.100 I wanted to just go back to price earnings really quick, just to, from my basic understanding,

01:00:07.980 when you're looking at a PE ratio, uh, like a, a 20 X is, uh, more recently been a standard

01:00:16.800 depending on the industry.

01:00:18.220 obviously it depends on the industry, but you're looking at like, uh, is this equation? Like, uh,

01:00:24.120 if you have a hundred dollar share that you can expect $5 in earnings and that's what you get a

01:00:31.840 20 or is it more complex than that? It's more complex than that. Um, the earnings of the

01:00:38.260 company, not the earnings you would receive, not the dividends you would receive. Yeah. Correct.

01:00:44.280 right the earnings that company so what they have earned okay and then there's all kinds of

01:00:50.980 different formulas and etc on that so you it's not this simple versus the cost of the stock

01:00:57.360 okay okay if it was that i wish it was that simple but that's why you get inflated pe

01:01:02.640 ratios for tech companies yeah it's because there's growth yes multipliers in there so

01:01:08.440 nvidia because they make uh these chips for ai right now right you know it's right there's a lot

01:01:15.260 of demand they're selling out so it's obviously an emerging industry so the pe ratio is way high

01:01:21.440 big time high you know versus coca-cola right i mean they're not doing anything different than

01:01:27.700 they have the last 20 years you know so yeah anyway sorry didn't mean to derail you there

01:01:33.220 but I just wanted to clarify with that. No. So no. So like Coca-Cola is not inventing

01:01:38.280 anything new. Like I remember when they came out with new Coke and I was so sad because it

01:01:43.520 tasted horrible. Well, it seems like Coca-Cola, their strategy is to just buy other emerging

01:01:49.740 companies. Yes. You know, but anyway, we didn't need to get into that far in the weeds. No,

01:01:55.280 that was on the value side of the market versus growth. But instead of creating new tech, yeah,

01:02:01.460 they're not creating anything new they're just buying companies you know they're buying water

01:02:06.660 and sports drinks and all literally so yes yeah so where we are this this is what you're talking

01:02:13.020 about was it looks like that we're coming to the end of a an up cycle is that that kind of what

01:02:18.560 you were insinuating so markets and economies move in cycles and not in strict easy to understand

01:02:26.800 exactly when they end. A large amount of economists expected the stock market to crash

01:02:34.380 last year, 2023. It did not. In fact, the stock market grew significantly, more than normal last

01:02:44.040 year. So the economists thought it was going to crash, and it ended up growing more than normal.

01:02:49.600 Therefore, be careful about trusting the short-term view of economists. I mean, over and

01:02:54.360 over and over again. You should learn that lesson. People that tell you what's going to happen in the

01:02:59.180 short term, be very careful on that. This is why I like to do planning of setting my clients up to

01:03:05.900 take advantage of crashes when they happen, but don't completely swath your investments. Assuming

01:03:13.180 that's going to happen in the short term, you will lose out on quite a bit of growth if you try to

01:03:18.800 time the market on the way down. I'm a fan of timing the market when it crashes, taking your

01:03:23.580 cash out in investing, but not changing. Oh, the market may crash. Uh, I'm hypothetically 30 years

01:03:29.620 old and I've got another 60 years in the market. I should put all my money in bonds. No. Cause you

01:03:36.720 may lose out on this year's growth in the last cycle. Correct. It was from like 2008. Uh, and

01:03:43.920 people kept waiting to enter the market because, Oh, we're, we're due for a crash and it didn't

01:03:48.600 happen until like 2020 yeah and so if you were 30 years old in 2008 and you're like i missed it it's

01:03:54.460 going up i'll just wait for the next crash you're talking a long time that you're gonna have to wait

01:04:00.080 you're correct 12 years you're 42 and you've gained no ground so it's really difficult to time

01:04:06.640 it yes yes so so where to store safe money that's what you guys talked about in a couple of podcasts

01:04:13.180 to go so here's a question i don't know with with those guys is how liquid is that money like

01:04:19.500 like if i have hypothetically x amount hole held in in billion over there and the market crashes

01:04:27.480 can i go say i want my money now give me two weeks i want to buy in the market the market

01:04:31.800 just crashed by 30 i want to take advantage of this or is the money locked down i don't know

01:04:36.200 the answer to that. Okay. So because of how, how liquid is the storing of that asset, right? You

01:04:44.880 know, we've, you guys talked about that in the real estate, there's a non-liquid asset. There

01:04:49.360 is real estate, right? You need to make sure that sucker is stable in its position because 0.99

01:04:56.600 you don't want to leverage yourself to having to buy in a fire sale. That's how you really get hurt 0.98

01:05:02.580 in that. Did you want me to answer about the liquidity of Bitcoin and gold?

01:05:06.560 Oh, please. Yes, please. Yeah. Okay. So from my, this is off the top of my head. So I don't have

01:05:12.840 any numbers. Yeah, exactly. But I know with Bitcoin, the liquidity is very high. Correct.

01:05:18.920 The, the issue is if you had a 30% correction in a day, actually we've had that,

01:05:23.760 that there's, there's enough interested buyers, especially because of the ETFs. Yeah. So when

01:05:31.140 BlackRock and Fidelity. They're now entering the game. They're buying just an unprecedented amount

01:05:38.920 of Bitcoin at the moment. You also have mysterious buyers. They call him Mr. 100.

01:05:43.640 Wow. Just yesterday, he bought 300 Bitcoin. He buys 100 very frequently. Yeah, he just yesterday

01:05:51.040 bought 300. And so he's keeping up with the ETFs in a lot of ways. If you're curious, you can look

01:05:57.940 them up. But as far as gold goes, you have the inconvenience. You can't just log into your

01:06:02.460 computer and say, right. I have, you know, 20 ounces of gold I want to sell. And you just sell

01:06:08.020 it over the, you know, over the computer, you actually have to go somewhere. And so you do

01:06:11.780 have restrictions there, but there's, uh, there are other ways you could, well, you can actually

01:06:16.080 sell it on your computer. You can go to SD bullion or JM bullion and you can sell them your gold.

01:06:21.340 They, they, and then you ship it to them. So, so the liquidity is not as difficult on those two

01:06:27.000 items, uh, as it would be say with like penny stocks or with maybe some alternative currency,

01:06:33.560 you know, alt coins, uh, these just random cryptocurrencies, you know, those sorts of

01:06:40.360 things you definitely run into liquidity issues. So, uh, but that's from my understanding is that

01:06:45.980 those two assets typically don't have a lot of issues associated with it, but, uh, as far as

01:06:51.980 liquidity but the thing is if you had a say a a bigger drop or and it didn't look like it was

01:06:59.140 going to stop i don't know who's going to take it sure yeah we haven't ever experienced that

01:07:04.380 so if we have a uh an armageddon drop right this is something i try to uh play through you know

01:07:12.120 game out i guess is the right term um with clients uh that have questions of this and so uh here's

01:07:19.300 my one and a half cents of this not quite two yet uh on this okay so if if the dollar crashes

01:07:26.400 literally what do we use like how do you go to the grocery store you take your gold coins they

01:07:35.640 don't want your gold coins they don't care about your but they need people need food right gold

01:07:41.660 coins can't be because they don't care about okay your bitcoin can't be used and they don't care

01:07:47.360 about it. OK, your real estate, you can't just say, hey, you know, here, I'll give you a deed

01:07:52.320 or come rent to my house. And if things are crashed, like I don't care that we need to have

01:07:56.380 food to eat. Right. The stock market in the same thing. Well, the market has cancels if things

01:08:02.580 crash too much so that they stop the emotional craziness of people. So that'll shut down there.

01:08:08.620 So, you know, we've had a run on banks in the past. Where do we go? So in Armageddon,

01:08:14.360 nothing is safe we we can't protect against that oh well joe you can raise your own chickens and

01:08:20.920 pigs and cows well uh the majority of the folks that listen to this podcast have guns

01:08:26.540 right and if we have guns and there's my wife is starving and you have a chicken guess where i'm

01:08:34.400 going i'm going to get your chicken okay so that my wife doesn't starve joe was this in your notes

01:08:39.400 for compliance nope but uh it's uh i don't i don't think anything is safe in armageddon 0.99

01:08:52.660 the chinese come over and take over great um they have in the past not the chinese but the uh 1.00

01:08:59.280 civilizations in the past have been wiped out with a new you know dominating culture comes in 1.00

01:09:06.560 and they suck all of your assets of every kind, okay? 0.93

01:09:12.300 Like the Soviet bloc stuff is start, 0.96

01:09:15.280 they take the ownership of your house 0.88

01:09:16.900 and they put new people in to live with you type of thing.

01:09:20.140 So that's every asset,

01:09:22.480 there's nothing that's safe in that scenario.

01:09:24.740 So we can't plan for that.

01:09:26.340 Where's our hope, okay?

01:09:27.960 Who do we trust in for our hope?

01:09:29.700 Well, we cannot trust in our wealth, right?

01:09:31.780 We have to trust in our God.

01:09:33.420 So what do we do in probable?

01:09:35.940 That's where I want to talk to my guys. What's probable going to be? And then let's do the best we can with the rules around us. Let's be efficient and smart with how we maneuver through those to grow and move our wealth and grow it to the next generation for ourselves. Let's grow our own. Many folks here listening don't have their own. Some do.

01:09:58.940 Right. If we inherit how how to inherit smartly, there's ways to inherit smartly, by the way, when you do and the titling of those so that you avoid unnecessary legal expenses and unnecessary taxes.

01:10:13.620 So there's what I'm trying to say. It's complex and where we're going. And we haven't even started down where this podcast was going today.

01:10:20.580 Yeah. So let's, Alvira's back on track. So we're, you know, what is traditional finance? You talked

01:10:28.900 about the stock market. You're, when you buy a stock, you're buying a minority share in a

01:10:33.820 business. So you have interest in the business. If the business does well, it's more valuable

01:10:38.500 and therefore your share is more valuable. You have bonds, which you said is a loan. So you're

01:10:43.340 buying a bond and you're receiving interest back as payment for that bond. Is that, is that correct?

01:10:48.720 Correct. That's right. And then you have other more exotic options like ETFs or mutual funds,

01:10:56.520 which are essentially a conglomeration of multiple companies in different regions or different

01:11:03.100 industries that you buy a share of and you have managers that manage these funds. So you'll have

01:11:09.500 a tech one that has Apple and Amazon and Tesla and NVIDIA and who knows, like all of these.

01:11:17.540 And you just have a very small piece of all of these companies in your tech fund.

01:11:21.600 You can buy index funds.

01:11:23.740 So you can buy S&P 500 and it tracks along with the performance of the S&P 500, which

01:11:30.220 is, is it actually 500 companies?

01:11:32.460 I don't think it is.

01:11:34.060 503, 505.

01:11:36.520 Don't hold me to that number.

01:11:37.520 It's somewhere.

01:11:37.980 It's just hairball above.

01:11:39.180 Yeah.

01:11:39.620 Yeah.

01:11:39.920 So, so the performance of those companies.

01:11:41.920 So you have different options.

01:11:43.680 I had also mentioned in passing REITs, which is a real estate investment trust.

01:11:49.260 So you can own, you're the expert, so you interrupt me at any point, but you can buy

01:11:55.960 shares in hotels and apartment complexes and commercial real estate and all of these different

01:12:02.220 things.

01:12:02.460 So you can actually have an interest in real estate without actually having to manage the

01:12:07.060 real estate.

01:12:07.660 There's fees associated with the REIT for the property management and for the fund managers

01:12:12.520 and things like that.

01:12:13.680 you have, like you said, uh, commodities, which is a physical product. I funny story. There was

01:12:19.920 a gentleman I knew who, uh, he experimented in commodities and talk about like losing your

01:12:25.240 shorts on something. I think he bought like pork bellies. Yes. That's one. And, uh, it didn't go

01:12:31.780 the direction he wanted and they were going to deliver pork bellies to his house. Yes. And so

01:12:37.820 he had to find a buyer for pork bellies yes and so that one i think he got in a little bit over

01:12:45.180 his head yeah well a semi how many semi loads do you want of pork bellies you know that's that's

01:12:50.680 the question that wait now isn't in that i heard brian sove he buys bacon by the crate didn't he

01:12:59.160 say that in one of his bright hearth episodes yeah yeah he does yep yep him and lexi they buy

01:13:04.400 it from natural grocers. They've got some fancy antibiotic-free bacon that they buy. I'm sure

01:13:09.300 it's very delicious. And then you have other things you don't really, um, for men like me,

01:13:15.340 pretty entry level. You're not going to get into options trading, you know, or futures or anything

01:13:21.220 like that. Correct. I, I can't say, uh, what your finances are. You can say what you want.

01:13:26.660 so um i do are there barriers of entry to options trading yes okay correct do i do it yes for the

01:13:36.520 right place in the right client but yes uh futures no options yes uh certain kinds of option trains

01:13:43.380 option traders called naked trades no yep nope ultimate unlimited risk um yes and the other one

01:13:51.360 are not called clothed they're not naked and clothed uh you would think so but no uh so yeah

01:13:58.740 you have covered calls that's right that's right all kinds of stuff yeah we probably options are

01:14:04.300 so complex that people that even know the stock market don't understand options so we'll we'll

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01:17:07.980 let me go into the real estate just for a hairball because you guys talked about real

01:17:14.860 estate before there's different kinds of real estate right even tim was saying hey what kind

01:17:19.040 what is how's the real estate market doing which sector yeah so you know and you talk about big

01:17:24.520 commercial sectors well what stage are you in the funding of a brand new build or are you at the

01:17:32.440 stage where this is a apartment complex that's already rented out and now you're buying a rented

01:17:38.640 out complex, right? Different stages, you can have different kinds of investments in different stages

01:17:44.320 and therefore they have different kinds of risks and returns and dividends and et cetera on that.

01:17:49.180 So it's not just one sector of real estate. There's so many dimensions of each sector

01:17:53.700 and who is allowed to go in because there's actual SEC laws to require if they're more aggressive

01:18:00.820 and speculative sectors that you have to obtain certain levels of assets and income

01:18:06.120 to be able to allow to invest in those.

01:18:09.000 So that gets into the alternative market, which, compliantly, I can't say much about here.

01:18:14.260 But we do invest into the alternative market for clients, and the rate of return on those is juicy.

01:18:19.520 Every time I show this to somebody, they say, yes, please, can I have some more of this?

01:18:25.500 So it is a very nice set of tools, set of products to use in the appropriate time and space.

01:18:32.960 But like you mentioned earlier, there is liquidity risk.

01:18:36.260 Liquidity is, and that's what I was asking about gold, and I'm curious more about Alpine Gold and their liquidity and et cetera type of thing.

01:18:44.600 But liquidity risk is, hey, I want my money now.

01:18:47.780 How can I go get it?

01:18:50.040 Right.

01:18:50.200 So the alternatives market is very illiquid, has liquid risk.

01:18:54.540 Well, that's typically what you get with different assets that have a higher potential of increase, you know, is that there's usually correlating risks.

01:19:03.560 Yes, that's right.

01:19:04.680 You don't get to have your cake and eat it too.

01:19:07.260 You know, you're, you're, that's right.

01:19:09.900 The asset's going to grow quickly and then there's going to be risks associated with that.

01:19:14.100 I mean, if you relate it back, you can't talk about the alternative market or I could call it the alt market.

01:19:18.860 If you wanted to feel really cool, you know, with NVIDIA or something like that,

01:19:23.340 you have this meteoric rise well what's stopping it from going down you know there's there's

01:19:28.400 definite risks what goes up must come down who knows um uh i don't i don't know if that's the

01:19:34.160 case with nvidia i should have picked someone else but um anyway so you you have alternative markets

01:19:40.040 anything else that i mentioned offhand that that i probably fumbled that you know a lot more about

01:19:44.900 well we can we can go back to the idea of protection yeah because what i do is risk

01:19:51.320 mitigation, right? So one of the risks is taxes, right? So taxes change. The tax law, if things

01:19:59.800 stay as they are right now, you hear that caveat? If they stay as they are right now, the tax law

01:20:06.280 is going to have a major change on January 1st, 2026. A major change that affects everyone

01:20:13.020 on standard deductions, how much you can deduct standard-wise versus those that don't itemize,

01:20:20.120 or when should you itemize and not versus just the, if you make the same, what the tax bracket

01:20:27.100 rates will be. Okay. So this is going to affect a lot of people unless the administration changes

01:20:34.300 and they change the laws, which have to get passed through Congress and et cetera, to change laws.

01:20:39.880 Um, so tax efficiency creates a multiplication factor or a wealth building factor of your

01:20:50.120 existing assets.

01:20:51.360 I don't mean to interrupt you yet again, interrupting you again.

01:20:56.000 You can't drop a bomb and say everything changes in 2026 and not tell us like, these are the

01:21:03.340 biggest things that you would, you would have to look out for.

01:21:06.080 Like, what do you mean?

01:21:07.100 Yeah.

01:21:07.580 So, so standard deduction, standard deduction is normally with extreme air quotes, because

01:21:14.220 it's not exact of everything.

01:21:16.020 I can't say everything, just not when I have a time, uh, of how much money you give to

01:21:20.680 a 501c3, uh, your mortgage interest up to 750,000 and your property tax.

01:21:30.400 Okay.

01:21:30.860 When you add those up, right.

01:21:33.360 Do you use the standard deduction amount, which has been an indexing that means increasing

01:21:38.960 each year amount?

01:21:41.000 Now, in Trump's administration compared to Obama's administration, Trump's administration

01:21:46.960 doubled the amount you deduct if you don't itemize.

01:21:50.780 OK, so that means less money you pay income tax on that.

01:21:54.900 Think of that as good for the average Joe, because the average Joe is the one that's

01:21:59.600 not itemizing because they don't have enough of those others added up to itemize so they use the

01:22:04.380 standard so if there's more they can use as a standard there's less income they pay tax on well

01:22:09.580 think of that in reverse the standard deduction is going down by roughly half so that means if

01:22:15.700 you make the same thing and you don't itemize there are more income you'll pay tax on so

01:22:22.840 straight up more dollars that you pay in tax for the same income okay that's not good who that

01:22:29.100 hurts is not the wealthy, the wealthy itemized. Who that hurts is the poor in the lower middle

01:22:34.340 class. They're the ones that normally don't itemize. So that's going to be painful in 2026

01:22:41.680 unless the Tax Cut and Jobs Act, that's the official name of it, Tax Cut and Jobs Act,

01:22:48.700 which is Trump's administration put forth into there. Plus also tax bracket, just the brackets

01:22:54.800 If you make between X and X, that income is at certain different rates.

01:22:59.000 Those rates look for a lot of people to be going up.

01:23:01.700 Each of those brackets look to be going up.

01:23:04.120 So the money you make in that bracket is going to be taxed heavier.

01:23:07.560 So that's a double tax.

01:23:10.320 Son of a gun.

01:23:12.100 And then the SALT limit.

01:23:14.760 So SALT limit, state and local tax.

01:23:16.480 That's what SALT stands for, okay?

01:23:19.380 The state and local tax, how much you get to deduct on your federal taxes

01:23:24.560 based on how much you pay on your state and local tax.

01:23:27.760 Well, think of this.

01:23:28.940 Those that actually pay this get a tax deduction on the federal.

01:23:33.740 But if you live in a state where you don't have those taxes,

01:23:36.420 you don't get a deduction on your federal.

01:23:38.300 So those that live in tax-free states, glorious,

01:23:40.780 like Texas and Tennessee and Florida,

01:23:43.240 they end up paying more per same amount of income.

01:23:46.280 They don't have this deduction

01:23:47.860 because people that decide to live in states

01:23:49.540 will stay to come tax.

01:23:51.340 So fairness is not a goal here.

01:23:54.560 clearly clearly there's no no problem there with the irs they're not concerned about fairness

01:24:00.420 or anybody that passes these tax laws anyway now i can't even remember what we were talking about

01:24:05.140 you got me so mad about taxes joe so so um where i was going is when i talk about risk mitigation

01:24:13.460 there's all different kinds of areas of planning that are risk mitigation taxes is one of them

01:24:18.080 so it's not just by a tool i don't care what tool you're talking about right now

01:24:21.720 It's how is it wrapped and what tax vehicle is it wrapped?

01:24:26.600 When do you access it?

01:24:28.140 When can you access it?

01:24:30.000 How to access it tax efficiently?

01:24:32.240 What about transferring it to your wife or to your kids in a tax efficient manner?

01:24:37.540 And when can you do that?

01:24:38.720 So there's more just what tool to buy.

01:24:40.900 It's how do you wrap it with your other wrappings of other tools?

01:24:45.500 So one of the things I wanted to talk about, because I was talking to this with, let's

01:24:49.960 just call them a pastor and refuge church. Not going to say which one. So I was just talking to

01:24:54.460 have a conversation earlier last week about, hey, they want to buy some real estate and what are

01:25:01.440 efficient ways to do this. And so I said, you know what? Why don't you consider growing another asset

01:25:08.460 that you can use as collateral? It's just called a non-qualified account, non-qualified investment

01:25:15.060 account in the market. And you can use that as collateral for a loan to go buy a piece of real

01:25:20.440 estate. And then the money in the markets keeps growing. And then you have a piece of real estate

01:25:24.960 too. And now you're growing from two sides. So it's a multiplication of your dollars instead of

01:25:29.980 just buying real estate and growing there or just buying a stock market and growing it there.

01:25:34.980 There's a way to use them as collateral to multiply. So how do you invest? What tools

01:25:41.600 do you wrap it with? What insurance do you buy? What risk do you assume? Because we can assume

01:25:49.340 risk ourselves by not ensuring, but understanding what to assume and when to assume it. And then

01:25:55.160 what about the titling of it? So that's where I'm coming back to. What is planning? Yes,

01:25:59.720 it is risk mitigation. But and then what tools do we put inside? I use the stock market tools,

01:26:04.980 the public and the alternatives market for the tools. That's how I get paid. I get paid two

01:26:09.520 primarily ways. I prefer to invest in the market in an advisory manner or a fee-based manner.

01:26:16.240 There's two ways called fee-based. I do them both. One is we charge an asset fee, a fee of

01:26:22.140 the assets under management. And there's another way that called fee for service, which is just,

01:26:27.380 Joe, will you talk to me and I write you a check to talk? I mean, that's very crudely put,

01:26:32.980 but it's more than that. But yes, we do that manner too, because those people,

01:26:36.820 well, hey, Joe, I want to maintain all my own assets and do it to self, but I want your help.

01:26:40.120 How do I do that? Well, you can pay me for my brain, that type of thing. And then on the

01:26:44.060 insurance side, all insurance is commission based. And those are fixed in price wherever you go. So

01:26:49.800 we get paid a commission on the insurance. So on the insurance side, what are the other tools I

01:26:53.420 use? You asked for. So I use insurance tools. Okay. This is a compliance heavy arena.

01:27:01.600 so briefly without spending the next day and a half to talk about this one

01:27:08.960 there is in life insurance that is pure insurance that's called term pure insurance means you either

01:27:17.320 use it or lose it type of thing right disability insurance is all pure insurance car insurance i

01:27:23.640 don't sell car insurance that's pure insurance that type of scenario homeowners insurance is

01:27:29.040 pure insurance, but I use asset-based also life insurance tools when appropriate, not always

01:27:35.320 appropriate for every client. Actually, it's a minority of my clients that use them. I am one

01:27:40.260 of my own clients that uses them. So there's a whole life tool that has a guaranteed growth

01:27:45.940 aspect to it, but it's not a very snazzy growth compared to the stock market or other tools.

01:27:52.080 There's tools called Variable that are invested in sub-accounts that himself

01:27:57.600 go into the stock market and therefore they vary. But they're attached to life insurance. So if you

01:28:03.780 die, there's a life insurance check to them also to liquidate and end the account. So those are

01:28:09.520 tools that can be used in the right case, marrying up with other assets that you have. I'm not a fan

01:28:16.680 of only using those for all of someone's portfolio. But one of the things that I want clients to

01:28:24.020 understand in that arena is two phrases here of research. If whatever you buy, if you buy any of

01:28:30.640 those, is to understand participating versus non-participating. This is a question I ask

01:28:38.040 clients who are interested in this. I've never had someone yet that I remember say they've

01:28:43.480 heard of those terms. Those terms are referring to who owns the company. Just like if you own

01:28:51.020 another company, profit always goes to the owner. So in these two insurance scenarios,

01:28:56.760 you have different kinds of owners. In a non-participating, they're owned typically on

01:29:01.760 the stock market. So the people who own the stock own that company and receive the dividends.

01:29:06.240 And mutual companies or participating companies are owned by whoever owns the insurance policy.

01:29:12.600 So they receive the dividends. So if you have an asset-based insurance product like Whole Life

01:29:19.040 or variable universal life or universal life, et cetera.

01:29:23.360 And you buy it with a participating company,

01:29:25.760 the dividends can participate, can go into the asset

01:29:28.220 and have it grow faster

01:29:29.340 versus buying with a non-participating company,

01:29:32.020 the dividends go to somebody else

01:29:33.140 and having it grow slower.

01:29:35.340 So the question is, well, do you want to have the dividend

01:29:38.660 or do you want to have the dividend go to somebody else? 0.65

01:29:40.700 Kind of a silly question,

01:29:41.860 but most people have never thought of the difference

01:29:44.160 of if they want to go that route,

01:29:46.040 how do they research which company to use that's a lot of places you can research different

01:29:51.820 qualities of companies and etc but that's a little bit it's very heavy on what i can say

01:29:56.860 and not say on that so let's keep going i would like to receive other people's dividends that'd

01:30:02.300 be great it's more receiving your own how do i own non-participating plans anyway that's a joke

01:30:12.340 not being serious the participating means your own dividends do you want to receive your own or

01:30:19.100 do you want to give your dividends to somebody else that's a non-participating type of thing

01:30:22.820 owning someone else's dividends that would be like owning non-voting shares in the company maybe no

01:30:28.780 because you still own shares um but there's all kinds of different shares of stock of preferred

01:30:33.880 stock and non-voting stock to voting stock to common stock to there's the stock market is heavy

01:30:40.040 on different pros and cons of different kinds in bonds. You can have convertible bonds that

01:30:44.180 convert into stock shares and non-convertible bonds and bonds that have call features early.

01:30:49.460 So they get called if you don't want them to, um, it's not just simply buying one thing or

01:30:54.900 buying another. It's the strategy of how do you wrap it and what do you buy together?

01:30:58.560 So you, I mean, how difficult is this to manage Joe? Because it seems quite exotic. Uh, you know,

01:31:05.660 the way I've interacted with the stock market before is like, sure, I'll buy an ETF. I'll buy,

01:31:10.580 you know, a couple of shares of this, a couple of shares of that, you know, stock picking, which

01:31:14.520 you would probably turn your nose up at and everything. But, you know, but that's just a

01:31:19.980 really like scratch the surface kind of thing. What you're really offering is expertise in,

01:31:25.660 in navigating all of these different options, these investment vehicles and, and risk mitigation

01:31:31.460 vehicles. And there's a lot more to it than just I buy stock and it goes up. Yes, sir.

01:31:38.020 So there's a lot more to that. I was curious, Bitcoin guys, gold guys, they seem to have

01:31:46.200 like this, their preferred investment, it has a lot of moral elements to it. They're convinced

01:31:53.860 because of some moral reason. Usually it has to do with, like you said, fiat currency. That's why

01:31:59.680 not many people understand the terms, um, which I could go off on and I'm not going to, I am

01:32:06.120 resisting, but they, they tie their investments to some form of economic morality. Uh, do you

01:32:12.840 think there's an element of that in traditional finance or, uh, even do you think that there are

01:32:17.500 elements that are immoral? Uh, I'm just curious what your thoughts are on that. And I know

01:32:22.360 compliance yeah compliance super heavy here which i'm able to say a lot more on an individual client

01:32:30.660 meeting but in a recorded podcast a whole lot less no there's a there's a little bit i can say

01:32:36.400 and that is i don't believe in and of themselves inanimate objects are moral or immoral they can

01:32:42.840 be used immorally and be used morally but in and of themselves are not uh and if you look

01:32:51.640 historically, currencies have been used immorally and been used morally. So a currency in and of

01:32:57.720 itself is not immoral. In fact, a currency is important to have. My personal, I wish personally

01:33:03.340 we'd go back to the gold standard. That's what I want. Or to go to an asset-based standard. How

01:33:08.480 about that? But pick an asset, pick a stable asset and have that be a standard. I would

01:33:13.660 rather have that. Yes, it takes power away from those that want power, which I'm fine with too.

01:33:20.780 I'm a little power guy.

01:33:22.600 Hey, those above should have little bits of power.

01:33:24.860 I want lots of power.

01:33:25.660 I don't think that there is a view of, hey, gold is immoral or immoral or Bitcoin is immoral or immoral or the stock market is moral or immoral.

01:33:37.120 You know, the the dollar market, which I find people a lot of people confuse the dollar with the stock market is very different.

01:33:48.340 The dollar is the fiat currency we use to buy and sell.

01:33:54.840 And those that hold their money in dollars in banks is different than holding it in any of these other assets that your podcasts have been on.

01:34:04.340 The stock market is, if you're buying a stock, you are buying a minority share in a big company.

01:34:10.120 okay so have one of the things that i i want is having other small business owners around me

01:34:18.300 right some barriers to entry into the business world is money right as joel webin says we need

01:34:23.480 money to be able to build um which i love his talk uh by the way over on a conference um so

01:34:30.220 there's there's your plug yeah it was really good um but uh so i believe we should own assets

01:34:39.120 you know, as something that in one of the things I wanted to get to in a little bit here. So I'll

01:34:44.780 go into now is, is ripple effect assets. What do I mean by a ripple effect asset? A ripple effect

01:34:51.680 is a benefit to another family, which has a benefit to another family, which has a benefit

01:34:56.220 to another family, right? It has a ripple effect in our culture. So if I go and buy a minority

01:35:03.220 sharing a business. I don't care if it's mom and pop garage auto around the corner or buying a

01:35:09.260 stock or whatever. That company then has money to then go and pay employees. That employee takes

01:35:18.340 that and goes buys groceries for their family. And that grocery store takes that money and goes

01:35:24.100 and pays the electrical bill. And so it has buying into businesses has ripple effect. I think we

01:35:32.200 should have ripple effect and building effect on our communities and we're trying to grow real

01:35:38.400 estate i think does a good job in that also so buying into businesses and buying into real estate

01:35:45.260 i believe are excellent because of the ripple effect of that uh one of the things that that

01:35:51.100 people are obviously if you've got cash laying around and you're like well i like i like having

01:35:55.880 cash um but it's the one of the most guaranteed ways to degrade uh it's a for sure loss yes and

01:36:03.020 buying power holding on to it correct and so one of the questions is like well i want returns

01:36:08.160 like that's what i want like why would i buy bitcoin or gold or real estate is you know

01:36:14.100 stock stocks or bonds or whatever is because i want returns i guess speaking generally

01:36:21.000 how are returns how are returns in traditional markets i know that sure that's too big a question

01:36:27.900 because it well it depends on like what sector of the stock market are you invested in how what

01:36:32.440 percentages in bonds what's in your whole life insurance you know it really does depend on that

01:36:38.620 but we have a ton of data for the stock market so maybe you could speak to that yeah so i want

01:36:47.060 to give a couple of dates and times that I have written down here to share in. First, I want to

01:36:53.220 start with a Mark Twain quote. I love Mark Twain quotes, so I'll give you one of my favorite I love

01:36:57.620 to use in clients. There's lies, there's damn lies, and then there's statistics. So be careful 0.98

01:37:07.040 with statistics. I don't like using point-to-point statistics at this point in time and now at this

01:37:13.920 point in time because i can take any asset you can give me an asset and if i get to choose the

01:37:19.100 time frame i talk about it i can make that asset the worst thing or the best thing oh yeah absolutely

01:37:24.400 so um i don't like using point-to-point statistics like the s&p 500 in in july of 1980 was 462

01:37:34.900 and 2000 for, uh, the price of gold. Okay. In 1994, the S and P 500 went to 974. Okay. So

01:37:44.780 roughly double and gold went to eight 17. Yep. 2000 down to eight 17. You heard that lost more

01:37:52.660 than half from 1980 to 1994. So if you, I can then say, you know, gold's worst thing in the

01:37:58.840 world. Look at that lost half, more than half. You should never buy gold. So, uh, you know,

01:38:05.320 I can, I can pick dates, right? Neglecting the fact that there was a stock market crash during

01:38:10.340 that time and that gold was at all time, you know, because it's a risk off asset. Anyway,

01:38:15.940 no, you make a good point. Oh, I picked, I picked a high and a low on purpose to make it look bad.

01:38:22.220 Right. So I'm, I'm saying, yeah, no, your points made. So, and also, you know, the assumption in

01:38:30.020 that, which is a wrong assumption, everyone, you would invest all your lifetime's wealth in that

01:38:34.560 date and then pull it out on the second date. Like it didn't work. Yeah. It's really hard. I've

01:38:43.480 heard it's really hard to read the right side of the, of the chart. There you go. It's way easier

01:38:48.420 to read the left side when you're looking at the past you know than it is to predict the future so

01:38:53.440 yes yes um it's when do you invest and then coming back to what i said earlier what wrapping do you

01:39:00.120 have around it and how they're taxed and titled and but then also what about the rest of your

01:39:04.380 assets you know so there's not one perfect thing everyone should do so my principles that i come

01:39:10.420 to a meeting with with someone i haven't met with it is hey let's look at everything that you have

01:39:15.980 access to because different people have access to different tools. Absolutely. And that is based

01:39:22.060 on wealth or business or business ownership or the kind of company they work for, or they all

01:39:27.920 have different opportunities. So what are the opportunities and tools you have access to

01:39:31.700 in that? And then as your catastrophic risk taken care of, someone dies, becomes disabled,

01:39:36.860 you have a will, you have a trust, you have a durable powers of attorney. This is that is area

01:39:41.580 that I find actually that the most people don't have, and that is their wills,

01:39:45.820 durable powers of attorney. It is super common for people not to have that, especially when

01:39:49.940 they have little kids. So that's really important to solidify catastrophic risk.

01:39:55.620 And then I go into, well, emergency fund money, what's the appropriate amount? There's not one

01:40:00.060 standard because different people have different stabilities of their income. Okay. And what about

01:40:06.400 different family situations, right? Some people have wealthy families they can go to. Some people

01:40:10.660 have families they're having to support type of thing.

01:40:13.280 So there's not one standard.

01:40:15.240 Then get into debt efficiency,

01:40:17.440 then get into what investments they should be doing,

01:40:20.280 and then get into tax strategies and estate planning.

01:40:23.820 So it's not just, hey, I have a hundred grand.

01:40:25.680 Okay, go buy this.

01:40:27.360 There's too much.

01:40:28.300 If you have credit card debt, 1.00

01:40:29.600 well, then maybe you should kill that, right? 1.00

01:40:32.400 Yeah. 1.00

01:40:33.000 But if you don't have a will,

01:40:34.280 then you should go to an estate planning attorney

01:40:36.180 and get a will on that.

01:40:37.680 So it's not simple.

01:40:38.960 What are the returns?

01:40:40.660 depends on how the rest of your picture is. Okay. A significant amount of my clients

01:40:46.940 last year grew in the 20s percent in a year. Okay. That's with the diversified portfolio and

01:40:55.440 et cetera. In 2020, the clients that did what I told them, I had many of them come back and tell

01:41:01.680 me their money grew by 50 percent. Okay. Because they were positioned and were able to take

01:41:08.880 advantage of when things crash. Not everybody has access to that. Okay. Some people are only

01:41:16.000 have 401k options and that's it. Well, those could be very few of what you can do in there

01:41:21.640 unlimited. So to ask what's the return is like saying, Joe, I want to buy a car and not know

01:41:29.640 anything about cars. It's, are we getting a Lamborghini or a moped, you know?

01:41:36.380 Um, Hey, thanks. Thanks. That's the nicest way anyone's ever said. That was the dumbest

01:41:41.440 question I've ever been asked. So I appreciate that. No. So what, what do you think, uh, as far 0.99

01:41:50.000 maybe this would be better, uh, a better question. So, you know, comparing it, you know, this massive

01:41:56.740 world of the stock market and of all of the other exotic products that you have access to. Um, what

01:42:02.960 do you think are some of the better assets to hold for the future? Sure. You know, as you look out

01:42:07.840 there, I know you can't speak to specifics and it depends on the person and the situation.

01:42:12.940 Just, yeah. Just looking out in the future with, um, potentials, uh, in issues in banking and with

01:42:19.400 AI and, and all of this, like, what do you think are some of the best sectors or, uh, products

01:42:25.740 that you would, you would think of, you know, maybe even if you're saying like, well, this is

01:42:31.020 what I, I do, you know, uh, whatever you can do to get around your compliance handcuffs.

01:42:36.900 Yeah. So the easiest way is just to describe kind of what I'm doing, right? Cause then I'm

01:42:43.360 not recommending to anyone and can't be inferred as a recommendation because not everybody can do

01:42:49.180 what I can do. One, not everybody's a business owner, right? I'm a business owner. So I have

01:42:54.420 access to things that they don't type of scenarios. So I am positioned to take advantage

01:43:01.540 if a market crash happens in the near future to be able to buy a bunch. And I want to be able to

01:43:09.200 do that. I did that in 2020 when it crashed and I bought a bunch. But I also invest in something

01:43:17.460 called dollar cost averaging. Here's a great basic concept that you mentioned one earlier,

01:43:22.740 compound interest is number two. You want a starting place for understanding those two

01:43:27.160 concepts. Those are awesome. Dollar cost averaging is putting money into whatever it is you're

01:43:34.560 investing on a routine basis, whether it be every paycheck or every week or every month.

01:43:40.820 And you will take advantage when the market crashes just naturally, because if you're not

01:43:45.620 watching exactly when to do it, well, you'll just dollar cost average into a crash and your money

01:43:50.280 will grow faster on the money that purchased in the crash so it's a glorious way for people to

01:43:56.320 systematically get in and not know what to do that dollar cost averaging is glorious yeah you can have

01:44:03.100 your your with every paycheck it's like hey i want to buy two hundred dollars of the s&p 500 or

01:44:08.420 whatever it is yes and just every paycheck it just automatically buys so that means you're buying on

01:44:12.720 the way up but you're also buying at the bottom that's right you know and on the way down and

01:44:16.920 And you're just building your account slowly over time.

01:44:20.300 Yes.

01:44:20.800 So Warren Buffett's statement, that is a great concept to think of in this way.

01:44:25.100 It's not timing the market.

01:44:26.400 It's time in the market.

01:44:28.020 So having time in the market is excellent.

01:44:30.500 Like what you were referring to, trying to wait for the next crash to purchase, you would have missed a massive bull market.

01:44:35.400 Bull means going up.

01:44:37.100 Massive bull market versus those that were dollar cost averaging took advantage of it in that.

01:44:42.660 So I have a 401k for my company that we contribute as much as we can into.

01:44:52.200 And then we do something called backdoor Roth IRAs, which is a way to get money into a Roth IRA, regardless of other limitations.

01:45:02.520 And there also we have a non-qualified investment account that we can borrow against if we want to or keep it invested in the marketplace.

01:45:12.660 I have whole life insurance.

01:45:14.220 I have variable universal life insurance.

01:45:16.740 And we use those as risk mitigation tools when markets crash is to be able to use when we want to on that.

01:45:23.500 Also something that are a wonderful, wonderful tool for those that can get into it.

01:45:29.360 We do this for clients that have $250,000 in an account and above.

01:45:33.280 We do this as an option, not necessarily.

01:45:36.140 And it's called private debt.

01:45:37.900 Private debt is an extremely illiquid asset.

01:45:41.240 Mega, mega, mega risky on liquidity, but you're getting a liquidity pop on that.

01:45:46.440 And so you're getting a higher rate of return because of that lack of liquidity.

01:45:51.220 So that's something that I like to use for myself and when appropriate for other clients.

01:45:57.120 This is something I find that most people never heard of.

01:46:00.200 I don't know of a way to get it individually. 1.00

01:46:03.300 The mucky mucks that I have talked to constantly tell me you have to go through an advisor, 1.00

01:46:09.000 not only through me, through an advisor. And not all advisors have access to this. Not all 1.00

01:46:14.320 advisors have done the extra training and not all companies even offer this in the investment space.

01:46:20.700 So I want to use those tools when appropriate, but also inside the wrapping of what tax tool,

01:46:28.120 you know, and how old is someone? When do they need income? When do they need to transfer money?

01:46:34.560 So those are some of the basics that I'm doing, but it's not right for everyone. If they have

01:46:38.400 credit card debt. My normal thing is, hey, try to kill that as fast as possible. In fact, you and I 1.00

01:46:43.080 did a whole podcast almost on that subject. Yeah. Right there on, hey, how to get out of debt

01:46:48.760 efficiently and pay the least amount in interest. A big pet peeve of mine in this whole space is

01:46:56.480 what banking institution are you banking with? Are you banking with an organization that is

01:47:03.840 using the profit of your money to engage in services that you would dislike, exclamation

01:47:11.280 point.

01:47:12.320 The big banks tend to do that.

01:47:14.580 You can go read the creature from Jekyll Island in the history of J.P.

01:47:20.400 Morgan.

01:47:21.560 Woo! 1.00

01:47:22.820 Talk about give us a free hair curl. 0.98

01:47:24.440 I'll take a hair curl. 0.59

01:47:25.260 I'll take some hair.

01:47:27.920 Me too.

01:47:28.760 um but uh so what banking are you using i don't like bank of america and city and chase and wells

01:47:41.380 fargo and the big banks tend to be uh spending money in ways you don't want to also when i went

01:47:48.580 to look at a bank what i did is i went and asked them the management team hey when when credit

01:47:55.500 default swaps were going around, right? And a big proponent of the 2008 crash was credit default

01:48:01.320 swaps. You know, how much did you invest in credit default swaps? And then when the banking bailout

01:48:06.800 came, how much did you accept of that? And what was your position? Because I want to know how

01:48:12.500 they control their own finances. So I think those are some good questions to consider when you choose

01:48:17.920 an organization to bank with. But also, you know, look to be your morals. Who are you doing business

01:48:23.860 with is a big pet peeve of mine, which is why Brian's talk, which was the first one at the

01:48:30.520 conference you had is my favorite because he goes into this. And that is, I forget the exact term he

01:48:36.220 used, but purposeful business with those in your community. Who are you doing business with?

01:48:43.520 Okay. We should be doing business with those that we like their morals and ethics. 0.96

01:48:50.100 and you know what if you're a business owner here you are called to excellence in absolute

01:48:56.560 everything uh in the way you run your business is a big pet peeve of mine for business owners

01:49:02.160 if they're not excellent in what they do get excellent we're called to do that because who

01:49:05.580 do we work for yeah that's uh that was really helpful thank you so what are some of the bigger

01:49:11.960 risks in our current environment environment to especially well i mean really the economy

01:49:18.280 because when you're talking about traditional finance or the stock market, you're really

01:49:23.340 talking about the economy. Bitcoin doesn't control the economy. It's actually a tiny

01:49:29.060 portion of the economy. Gold doesn't do that. Real estate obviously is a big portion of that.

01:49:35.140 But when you're looking at the future of the economy, what do you see as potential risks

01:49:39.760 in the future? And I understand you have compliance things. I don't know how much you

01:49:43.880 can speak to speculative things in the future, but you know, that I I'm, I'm really curious about

01:49:49.200 how you're looking at this with the election, with inflation, economic uncertainty, like all

01:49:56.180 of that, like what's going on? Yeah. So there's macro and micro aspects of this. So we can talk

01:50:05.900 macro and can get really frustrated um that's the kind way of putting it um of how those that are in

01:50:15.560 charge of banking worlds and high interest uh high position government officials uh in that

01:50:23.080 and then how are our leaders taking money as you know incentives and etc the whole world of

01:50:31.500 of let's we can reference I don't know if we're allowed to Meg Basham's book right very interesting

01:50:37.200 aspect of all of that so the macro world I don't think the world is going to come crashing to an 0.63

01:50:45.080 end in Armageddon and China is going to invade but where I normally work is in the trenches with

01:50:54.560 clients. I'm normally like the captain up in front with clients, not the general looking back

01:51:02.940 and making macro moves. So my specialty is in the micro, not in the macro. What I do is if I use

01:51:10.880 one of Brian's phrases, we live in Babylon, therefore how should we live? Yeah. So that's

01:51:16.960 what I get into is how then dear family, what should you be doing with your goals in your

01:51:23.300 situation. That's where I specialize in on that. No, that's fair. So we've talked about,

01:51:29.780 you know, stocks and bonds and all these exotic products that you have, I guess,

01:51:34.260 what do you think outside of that would be a good way to grow wealth? Is it through owning these

01:51:40.080 assets or is there something else that you would think of that, that isn't covered necessarily in

01:51:44.260 your, your sphere of investment products? You know, how else, you know, you've mentioned in

01:51:50.000 the past, like if you don't make a lot of money, you can't invest. You need to get another job

01:51:53.720 or something like that, you know, along more of those lines. Yeah, sure. So it's common for those

01:52:01.200 when I talk to them that if they're making less than a hundred grand, if I, if I need a place,

01:52:06.820 a place marker, a hundred grand in Manhattan is different than a hundred grand in the middle of

01:52:11.020 Indiana. So if you're making that, that you need a second job or more work or, or does your employer

01:52:18.460 allow for time and a half. Like that's glorious. You use your current skills, go make time and a

01:52:22.960 half and you can come home and be done. I also try to encourage families to consider, I cannot

01:52:31.560 recommend because of all my compliance, but what about starting a family business? A business that

01:52:37.900 your little kids can do work in and grow into and learn working skills and sales skills. And then

01:52:45.760 you show them the finances of this. There's all kinds of businesses you can do. I think it was

01:52:51.480 you that mentioned in one of your podcasts recently that when your brain looks for opportunities,

01:52:56.660 they're just endless. They're all over the place for things that you can do. So opportunities are

01:53:02.860 all over the place. I think we need more people with gumption to go get it. You know, we're not

01:53:09.020 promised a 40 hour work week is, hey, that's what we should be able to do is only work 40 hours and

01:53:15.220 then forget it and be done. I don't think that's possible. Um, 20, 30, 40 years ago, especially

01:53:22.120 today. Uh, I, you know, today I worked definitely more than 40 hours. I don't remember a time in my

01:53:28.020 life. I worked less than that except for scholastic time. Um, so yes, you need more income. Um, I love

01:53:34.800 business owners and working with, cause of their complex situation, but the, the tax book of

01:53:41.440 incentives, as Tim Six would put it, favors business owners. Absolutely. Business owners

01:53:49.840 are great. They create new opportunities. They create new jobs. So business ownership, though,

01:53:57.980 is not right for everyone. You've got to have an intense level of being able to handle risk

01:54:02.600 because the majority of businesses fail. So you're able to handle that risk. And so not

01:54:08.660 everybody's for that. Maybe they should invest in big and small companies. Consider that with

01:54:14.460 your money, going to get an extra income and invest more early and be smart about it on the

01:54:20.240 wrapping tool that you put around it. So I like businesses. I like real estate. I like it in all

01:54:28.900 different sizes, but there's not a perfect answer for everyone because of their ability to handle

01:54:34.600 risk. And maybe they got punched in the face with medical debt and they need to focus on that.

01:54:38.660 So because all kinds of qualifiers, yes, there's wonderful things you can do.

01:54:45.900 The majority of people need to work more and make some more income the younger they do it because of here's a concept, the compounding of money, which is based on when you put it and how much time do you have it for it to internally grow.

01:54:58.780 If you can start this when you're young, it is glorious.

01:55:02.280 One of my favorite things to do in the world I work in is with working with my client's kids.

01:55:08.660 If when I get to help them open up an investment account when they're young as a minor, to

01:55:14.700 be able to show them the potential growth of this, their eyes normally pop out of their

01:55:18.420 heads.

01:55:19.400 It's wonderful for them to get the practice of setting money aside for the future benefit,

01:55:26.480 right?

01:55:26.700 Delayed gratification money.

01:55:29.000 Who likes that?

01:55:29.640 I don't know many adults that like delayed gratification, but to teach kids delayed gratification

01:55:37.980 and compounding, it is a wonderful way to get them started because then you can see them why

01:55:43.620 you need to stay out of debt or bad debt versus get into good debt because of the compounding

01:55:49.320 difference of the debt compared to the interest and growth on the money.

01:55:53.700 All right. It's so funny. It's so funny. I just I love talking to you. You can tell that this is

01:56:00.380 what you do every day is that you're well, it depends on the situation. I mean, what about

01:56:05.140 this? What about this? You know, you just, you're, you're just constantly thinking through different

01:56:08.820 scenarios and situation. Uh, I run into this a lot in, in my past oral work when somebody just

01:56:14.620 has an off the cuff question about marriage, like, Hey, what about this conflict? I'm like,

01:56:19.500 I don't know. I need to know a lot more information before I'm still going to start

01:56:23.940 giving advice, you know? So I, I really appreciate the complexity of what you do and, and, and for

01:56:29.620 your hard work. And so, um, if people want to hear more from you, where, where can they reach out to

01:56:34.380 Joe? Yeah. So there's a few things and then I want to make an ask. You can get a hold of me

01:56:40.540 through my website. The name of my company is Backwards Planning Financial. You can go to

01:56:45.440 backwardsplanningfinancial.com and you can find me there. You can learn more about me if you want to

01:56:51.760 there. You can also reach out to me there. My email, it's joe.garacy, G-A-R-R-I-S-I at N-M,

01:57:02.400 That's November Mike dot com. So Joe dot Garacy at NM dot com. My phone number for business six one five seven six seven two five five five.

01:57:11.440 You can text me there or call me there. Leave me a message. Lots of ways you can get a hold of me if you want to talk more.

01:57:16.460 So here's my ask. And that is if you want help in your stock market assets, please call me.

01:57:24.220 If you have life insurance or disability insurance and are willing for a review, please call me because I'm a broker in these fields.

01:57:31.760 We work all over the place if you're a business owner and are interested or want to take a look

01:57:37.800 at reviewing your retirement plan for your business. If you have a 401k or a pension or

01:57:42.260 a simple, whatever it may be, please give me a call. I'd love to have an opportunity to see

01:57:46.480 if my team can be helpful. That's wonderful. Thank you so much, Joe. I really appreciate you.

01:57:50.920 Love talking to you. It's great. Even with my own personal finances and things like that,

01:57:56.500 I've really appreciated your help. So thank you very much. Friend of the show, Joe Gerasi,

01:58:01.440 You probably even heard an ad at some point from him on this episode.

01:58:06.320 So thank you very much, Joe.

01:58:07.900 I have one last thing I have to put because of compliance.

01:58:10.600 This podcast is meant to be educational in nature.

01:58:14.240 As part of my practice, each client scenario is based on their unique circumstance.

01:58:19.080 Our practice focuses on the development of comprehensive planning and recommendation

01:58:23.300 based on the client's goals and objectives.

01:58:26.100 Thank you, Joe.

01:58:27.580 in order you got to speak faster in order to actually pull that off i mean those guys that

01:58:33.160 say those things they speak at like 5x no i appreciate that thank you joe have a wonderful

01:58:38.180 day you too well in case you didn't know we have another king's hall show called the after hours

01:58:54.320 and it's available only to our patrons.

01:58:57.180 We have a great time in the after hours.

01:58:58.720 I play hype songs, which Brian loves.

01:59:00.720 Sometimes we even talk about Brian's cut.

01:59:02.440 We talk about recent news on X

01:59:03.860 and answer listener questions.

01:59:05.620 Overall, it's a great time.

01:59:06.900 So I'd encourage you to head over to patreon.com

01:59:10.100 slash the King's Hall

01:59:11.640 if you'd like to support the show

01:59:13.060 and get some extra content.

The King's Hall - September 06, 2024

TradFi： Building Wealth in Traditional Finance with Joe Garrisi

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