No Reward Without Risk

SPEAKER_01 0:46

Well, it's Monday, and you know for a limited time what Monday

Monday Reading and Book Banter

SPEAKER_01 0:49

means. Monday means another week beginning with a reading from the Good Book of Financial Physics. Written by me a long time ago in a galaxy far, far away. And supposedly it's a good book. I don't know. Somebody said it was pretty good.

SPEAKER_02 1:09

I don't know We just gave away a bunch more of them at the client appreciation event over the weekend. People loved them there.

SPEAKER_01 1:19

I did not tell them that. I apologize for that.

SPEAKER_02 1:21

These are our clients. I try to be nice to them, not really put very many restrictions on because they're paying us to take care of them. So I kind of do that.

SPEAKER_01 1:28

So yeah, they deserve a $7 book, $8 book, $8 book.

SPEAKER_02 1:31

Pizza book. It all works out well, apparently.

SPEAKER_01 1:35

So did you make the pizza? No, I didn't. It's me. Come on. No, no, no, no, no. Someone in the family did. Did someone in the family make the pizza? For her last time. That was a good thing. It's her last Pompeii pizza cook.

SPEAKER_02 1:47

I got up at the beginning. And people went, What? And I said, Danielle, who's retiring after this pizza event. Boom. That was my final line of the day. Did you get a laugh? It got a I still my favorite retirement moment is moments when I saw that joke and there was a lengthy pause, and then you went. Folks, that was a joke. And then people started titter.

SPEAKER_01 2:24

We forget the applause and laughter signs at our event. All right, today it's a reading from Financial Physics. We are already up to uh which rule of physic of financial physics, Tom? I think that's I think it's rule eight. Rule eight. Wow, we're already to rule eight. Look at that. We're gonna be done with the book before the end of the year, then. Oh yeah. Yeah. Or done with us before the end of the year, whichever comes first. Somebody's gonna be done with something. I'm pretty

Rule Eight: Risk and Reward

SPEAKER_01 2:51

sure of that. So what is this? This is maybe a really important thing. Rule number eight.

SPEAKER_02 2:54

It's very important, Chad. Well, it's the risk to reward ratio. I think everything kind of stems from this. Because once you understand this, you can really be a good investor.

SPEAKER_01 3:06

Um what it means is that that risk and reward are inextricably linked to one another. I don't think very many people get that. You the the all these extra returns that people promise you, they're promise, they're they're promising them to you based on the fact that you are going to be taking more risk. Whether you understand that risk or not, the risk is there or the reward would not need to be that high.

SPEAKER_02 3:33

Yeah. The author writes, you must take risks to make money on your investments. Can you say Don writes? Oh, I didn't okay. Oh, it does say Don McDonald in the front here. Uh the author also writes, there's no such thing as high-yielding, no-risk investment vehicle, no matter how much you might wish there were. Sorry. Are you really sorry? Were you really sorry or not?

SPEAKER_01 3:54

Well, I okay, because I hate to see people's expectations dashed. I want something for nothing, man. Against the rocky shores of financial reality. I just feel bad because I I think there is a uh a large percentage of the population that really believes that there is some secret path to wealth if only they can find it. If they can only get in on the inside. You know, I I'm my daughter was uh recently at a Jonas Brothers concert. Of course she was. Yeah. I guess on one of their they have a podcast now. So my wife was.

SPEAKER_02 4:32

Of course they do, yes.

SPEAKER_01 4:33

And Kevin was talking about how he got taken by numerous get rich quick deals. Because, you know, you when you're you know, he's a Jonas brother. He thinks he's special and there's a special deal. And these people are pitching him these things and they tell they tell you they're riskless. And they're often they are riskless right up until they're not.

SPEAKER_02 4:59

Yeah, and in the book it says almost every investment debacle in history can be connected to, at the very least, confusion about the risks involved. Please elaborate, author.

SPEAKER_01 5:12

I have to find him. You say the author. Who is the oh no um lurking behind you there. Well sometimes I actually think that the uh the the purveyors of these products believe their own hype. I think they often fall for their company's pitch, for their own mistaken desires to believe that what they're saying is honest. And I think that people because they're dealing with people they believe they can trust, fall victim to this. So I think I think often there is a mistaken belief that the risks are low or non-existent. But most of the time it's because those who peddle the products are pushing that narrative.

SPEAKER_02 5:58

Yeah. And I here's the other part. Most of you call me and say, I've made 12% a year for the last 10 years. That's pretty doggone good, isn't it?

SPEAKER_05 6:08

Mm-hmm.

SPEAKER_02 6:08

And you know what I say? How much risk did you take to make that money? Most people don't consider that. They just consider the fact that I made a lot of money, so I must have done something right.

SPEAKER_01 6:19

Okay, let's that's that's a great observation because we all, all of us who have been invested in equities over the past several years, have seen very impressive returns.

SPEAKER_03 6:30

Yeah.

SPEAKER_01 6:31

Who've you know had a decent diversified portfolio. But that return that you have had is not the one that you can expect to keep necessarily, and that's because of the risk. Because there's the other side of the coin. That is those times when the markets do not do well. As a matter of fact, times when they do horribly, they take away some of that return. And I know you, you want to keep that return. So you'd like to believe there's somebody who can get you out right before the things go down, or there are these magical products like indexed annuities that get you the return of the market with none of the risk. This is all absolute BS. Nobody can know, nobody can hedge, nobody can protect, nobody can keep you from losing money at times. It's going to happen. So, what you have to do is one, accept the fact that if you want higher than 4% or 4.5% returns in this current environment, or if you've been getting them, there's risk involved. Absolutely risk involved. Why do you think the stock market has historically returned about 10% per year over almost 100 years? Well, I think we're at 100 years now. Why? Because of the associated risk. That is absolutely a fact. So therefore, if you're getting 12 now and the historic average has been 10, then what do you think you might get over the next 20 or 30 years?

SPEAKER_02 8:03

Likely less. Not 12. By the way, David Booth in his book Stay Calm says that we should all embrace uncertainty. That at the end of the day, that's what you have to do. If you're an equity owner, that's what you have to do.

SPEAKER_01 8:17

Well, you know, fancy you should bring that up, Tom. Huh. Tomorrow, on Talking Real Money, I will talk with David Booth from Dimensional Funds, the uh the founder and and former now chairman of the board, former CEO of Dimensional Funds. And uh we're gonna we're gonna talk about the markets and the risks involved. And so we'll have a uh an addendum to this conversation.

Diversifying Against Market Risks

SPEAKER_01 8:44

Trevor Burrus, Jr.

SPEAKER_02 8:44

Let's let's pull apart the two major risks when it comes to stocks, because one is default, and the other is the one that scares people, by the way.

SPEAKER_01 8:53

That is the scary one.

SPEAKER_02 8:54

Trevor Burrus, Jr.: The idea that it all goes away. Trevor Burrus, Jr.

SPEAKER_01 8:56

Right. The Enron thing, the Washington Mutual thing. Oh, it all vanished. Well, we can address the first, and the second was the volatility, right? Yep. That's right. And we can if we understand the risks, then we can address and mitigate those risks. What's the best way, folks, to mitigate the default risk?

SPEAKER_02 9:19

Wait for some of the things. You in the back row. Yeah. Yeah, it's going to be diversification. That's it. Yeah. And by the way, this came up at the aforementioned client appreciation event where I shared my concern in today's, this is just my concern, that basically a third of your most people's money now is invested in seven stocks. It's a lot of money at concentration risk. But because, not because we're smart, just because we believe in diversification. Our clients' portfolios are about 10% in those seven stocks. But that's the thing that keeps me up at night because if something really bad happens to NVIDIA or Meta or one of these companies, that could be the trigger for the stock market going down. And that's the reason you need to be diversified at all times.

SPEAKER_01 10:07

And let me tell you, could be, remember, these are all, this is all conjecture. Here, here's a couple of things. One thing we do know. We know that at some point in the future the the stock market in the U.S. and internationally, maybe not at the same time, will go down. We know you there one second. Yeah.

SPEAKER_02 10:25

This is a fact also people forget. It's gone up double digits the last three years. It's never had four years of double digit gains in a row. Ever.

SPEAKER_01 10:36

No. So the extra expectation should be for a downturn.

SPEAKER_02 10:41

Yeah.

SPEAKER_01 10:42

But what is the what is the typical investor's first reaction to someone saying there will be a downturn? Get my money out. Right.

SPEAKER_02 10:49

I'll wait until after it goes down.

SPEAKER_01 10:54

Well, there's a problem with that. The market feels the riskiest when it has already done the worst. Right. Already done the worst. I don't, and we've been doing this show for a long time in one way, shape, or form, either sound investing or talking real money or whatever it is. I don't remember anybody in February of 2009 saying, this is as bad as it's ever gonna get. I am putting all my money back in the stock market.

SPEAKER_02 11:26

No, there were still the predictions for 2009 were horrendous. Another awful year in the markets, keep stay on the sidelines, et cetera. I can remember it well. It was bad, bad.

SPEAKER_01 11:36

You can't you can't dodge the risk. You can mitigate the risk, and the mitigation comes through two things. One, the the equity diversification that we just talked about. Okay? That protects you from the default risk. How about, Tom, protecting us from the volatility risk?

SPEAKER_02 11:54

Yeah, there that's where you have to build the balance into your portfolio with things like fixed income.

SPEAKER_01 12:01

Oh, I hate fixed income. It's so boring.

SPEAKER_02 12:03

It's not gonna be any money, it's down for the year, I think you just said with the total bond if we looked at it. But um a little bit. But the thing is that that's the stability in your portfolio. That's the thing that's gonna be there when stocks do take a dive. So you want to make sure that and and part of that equation, and we've talked about this a lot, is you need to know yourself about money because a lot of people feel really good right now because people feel really good when they've made money, as you pointed out, but when the market goes the other direction. Yeah, have made money. Right.

SPEAKER_01 12:38

Past. Have past tense. Tomorrow, you could lose. Tomorrow, literally tomorrow, you could lose 50% of your portfolio value. Could not saying you will, but you could.

SPEAKER_02 12:50

Yeah, and this is why we have the risk quiz, for example, that helps you understand yourself, your own emotions, um, and should lead to a plan, should lead to a portfolio allocation.

SPEAKER_01 13:01

But there's a downside to this massive diversification. Because, okay, think about this logically for a minute. Massive diversification is to reduce what? Risk, right? If you reduce your risk, what happens to your expected return? You also reduce your expected return. You're making less money. You're likely to make a lot less money. That's the price you pay for not panicking in a dramatic decline for being able to sleep at night. So you have to say, I am willing to accept six or seven or eight percent over a couple of decades instead of twelve.

SPEAKER_02 13:50

Can I sign up for the eight? I'll take the eight. I'm almost ready just to put it all, give it all the U.S. government, take my five point one. Over thirty years? Yeah, thirty years.

SPEAKER_01 13:58

So uh you you understand that with bonds, there's no guarantee in that 30-year intervening period that you'll get your money. No. You could lose some of it. I could see the problem is that it's long bonds are almost as risky as stocks. It won't matter in to me in 30 years. No, you'll you'll you'll be dead.

SPEAKER_02 14:20

That's the thing. So again, back to the a couple of things when I read the which I really liked. I just think so much comes from this. So if you could understand this concept, because I think people still believe that investing is a zero sum gain.

SPEAKER_01 14:33

That's good. That's gambling. Gambling is a negative sum gain.

SPEAKER_02 14:36

People still believe that. I made something, he lost something. It has to work that way. Not true. Diversified portfolio, low cost tax efficient. No. Um most people confuse risk volatility with total loss. I'm gonna lose it all in the market. That's well, yeah, if the whole place blows up and it's blown up, World War I, World War II, you still didn't lose all your money, right?

SPEAKER_01 14:59

Then because you were globally diversified. That's right. Even if you were a German investor and you had a globally diversified portfolio, you did okay during the run on the Reichmark.

SPEAKER_02 15:09

Oh boy. And understanding that trade-off, it's so you just mentioned a few of the numbers, but it is so important. If if people got that, they'd just they'd be able to go through the difficult times. But most people don't. The market goes against them and they think, see, I never should have gotten into stocks. The stock market is a risky venture. They don't they make bad decisions at that point. That's that's when it's costly for most people.

SPEAKER_01 15:38

And thus endeth the reading from the Book of Financial Physics.

Reader Questions and Market Odds

SPEAKER_01 15:43

Now to the audience participation portion of our program, the QA period, where Tom has taken the questions that you have typed in at talkingrealmoney.com on the ask a question form, and then he has taken them from that electronic format and turned them into printed tree pulp. Thank you, Mr. Tree.

SPEAKER_02 16:12

I appreciate it. Suffolk, Virginia, Rich, excuse me, writes and wants to know about what we believe uh this great Clark Howard article who wrote, What are your odds of losing money in the stock market? Oh, what a timely topic. Um Clark writes, the stock market can feel risky, especially when headlines focus on crashes and bear markets, which, by the way, let me tell you right now, market heads down. There'll be a lot of those articles. But he writes, history shows the time changes the equation. Using 50 years of the S P 500 returns, we found that over a single year investors lost money one in five times. Which is about right, 20% of the markets are down.

SPEAKER_01 16:55

Um, I thought it was 25, but okay.

SPEAKER_02 16:58

Holding on. In fact, he says there's no 15-year period since 1975 uh where investors lost money.

SPEAKER_01 17:06

And there was one 10. One 10-year period.

SPEAKER_02 17:09

Yeah, right. In the SP. In the SP. The he says short-term market movements can be unpredictable, but over longer periods the market has historically had time to recover from downturns and reward patient investors. Right? Like we're just going to talk about tomorrow. Stay calm.

SPEAKER_01 17:29

Stay calm.

SPEAKER_02 17:29

And he goes into 10 years. He says in 10-year periods have been two out of 42 years where markets have been underwater. I don't know that that fit. One of them obviously was the 2000-2009. Wait, wait, he said two? Two, is what he said. I don't know. What period of time? Since 1975.

SPEAKER_01 17:48

I can't think of it.

SPEAKER_02 17:49

I don't know where the other the other ten year would be. And maybe it's not, you know, a decade though. Maybe it's 2001 through 2010. So it could be rolling.

SPEAKER_01 17:59

Oh, I see, rolling 10 years. Rolling, could be rolling 10 years.

SPEAKER_02 18:02

But this is a really good article and very important. Uh thank you, Clark, for writing it. And you know we respect his work. Um he he goes in more specific numbers about the short-term thinking that most people have, but the reality is those who invest properly, those who stay the course, end up with a whole lot more. We know this from all kinds of people, Dalbar, et cetera, that have looked at actual returns of investors.

SPEAKER_01 18:30

But again, going back to our original topic, we are our own worst enemies. Really. We are terrible. Um and uh it it's because and it is why I let me go back. It it is why we don't believe anybody should be 100% in equities. Anybody. It's just too scary, even for the younger people who have the time. They still freak out.

SPEAKER_02 18:57

And as David Booth points out in his book, everybody is hollering at you today, whether it's TV, the internet, radio, whatever, every place. And by the way, again, when the market goes down, the screaming will just get louder, that this is the end, you got to

Stock Allocation Rules of Thumb

SPEAKER_02 19:13

do something, blah, blah, blah. Uh here's another one. This is Clark's rule. What do you think of this rule? Clark's rule.

SPEAKER_01 19:17

I don't what's his rule?

SPEAKER_02 19:18

His 1550 rule says that if you expect to live another 15 years, you should keep at least 50 percent of your money in stocks. 50 percent of your portfolio in stocks. So I guess you could have savings on that.

SPEAKER_01 19:31

I you know, I'm not a big fan of rules of thumb like this.

SPEAKER_02 19:35

Um But you need to stay invested in equities because those have been the best protection against inflation, I'd say that.

SPEAKER_01 19:42

Yeah. Yeah. But here's the thing. And we've talked about this. You need you need a balance. You need to invest for as much risk as you can stand, but only as much risk as you need to take. You got to balance those two out. Why are you why are you going out and putting 100% of your money in the stock market if you run the numbers and you go, I don't need that much money in retirement. Exactly.

SPEAKER_02 20:05

Yeah. That's right.

SPEAKER_01 20:06

Then don't. Be more conservative.

SPEAKER_02 20:07

How many superiors? Next question. How many super yachts can you own? Huh?

SPEAKER_01 20:11

I I I I'm personally gonna pr draw the line at zero.

SPEAKER_02 20:15

How many can you rent? Remember when I was in Italy, we looked it up. You could rent the superior. The number is still zero. A million and a half for the week.

SPEAKER_01 20:22

The number is still zero.

SPEAKER_02 20:23

So I'm the I'm waiting for the invitation from you and it's not gonna come.

SPEAKER_01 20:27

Unless no, that I was I think the odds are better for you than me.

SPEAKER_02 20:30

You're waiting for the invitation from me. Exactly. You may be waiting a while. History suggests that staying invested through the ups and downs has given investors some of their best odds of success. Thank you, Clark, and thank you, Rich, for bringing that to our attention because that is a good piece. All right, turning our attention to Sherwood, Oregon. Paula writes, I've just read We're Talking Millions by Paul Merriman and Richard Buck, which I really enjoyed. Richard uh passed away last year, by the way. And uh was thinking about giving a copy to my children who are in their early to mid-20s. I know it's a couple of years old, so I wanted to ask you if you recommend it to young adults or if you have another favorite. Thank you so much. Well, I would recommend Financial Physics, of course. Uh well.

SPEAKER_01 21:16

No, wait, the ebook. The ebook we're talking millions is extraordinary. Because you read it? Because I narrated it, yeah.

SPEAKER_02 21:24

You narrated it. It's a good book.

SPEAKER_01 21:25

It's I mean the audiobook, not the ebook, the audiobook.

SPEAKER_02 21:28

Right. There's nothing that's that's good for you if you read the ebook. There's nothing that's changed in either book. No, because it's based on decades of academic research. So the fact that it may have been written ten years ago. I don't know when it was written. Probably was ten years ago. Yeah.

SPEAKER_01 21:43

Well, financial physics was written 16 years ago. No. The original 2010. Was it really? Yes. Wow. Summer of 2010, on an RV road trip, I was writing my book. Remember? We just started Vestering. That's scary. We had just started vesting.

SPEAKER_02 22:00

Yes, that's right. With one million dollars. And today our little office manages about almost one point eight. One point eight, wow. Yeah. Anyway, thank you for that. But yes, I think that book is fine. I think it's good for a young person, but I I would also throw in financial physics. So from the colony, Texas. Is that a separate place or something? I'm not sure. It's the

Tax Payments From IRAs

SPEAKER_02 22:27

colony. James writes, hello, Don, you and Roxy. I think it means hello, Tom. You and Roxy covered a question I submitted on the August 12th show. Perhaps I didn't phrase it well, or perhaps we didn't read it right. Ah, it dealt with paying federal taxes from an IRA or brokerage. It morphed into a conversion question. Let me rephrase and state a direct question. I owe nearly $16,000 a year in federal taxes. I have $1.8 million in a traditional IRA. Option A, pay the quarterly estimated taxes, $4,000 four times a year, from the brokerage account. Option B, in mid-December withdraw $200,000 from my traditional IRA. Have the entire $20,000 withheld to fulfill the federal taxes. Option A hurts. Option B looks like a market loss of 1% in my portfolio. Well, now that I reread this question, I think I why would you pull money out of the IRA where you're going to pay 20% on the withdrawal? I'm guessing here, because some I don't know what you're doing. No, you'd rather pay the taxes right out of the brokerage. Sure. I thought this was a timing issue. Um remember if you don't pay your estimated taxes and you get to filing and you haven't paid what the government says you owe, you're going to pay not only what you owe, but there's a penalty on top of it. No, I think out of the brokerage, what say you, Don McDonald?

SPEAKER_01 23:54

Oh, absolutely out of the brokerage. Never, ever, ever, ever, ever, ever, ever touch the IRA for money you don't need to pay. If you can avoid it. If you can let it sit for as long as possible, Roth or regular. You're getting tax deferral on the regular. You're getting tax free growth on the Roth. You're not, you're, you, you, you, you're paying taxes on the other stuff, so might as well get rid of that first.

SPEAKER_02 24:17

From Tontogany, Ohio?

SPEAKER_01 24:21

Tauntogony.

SPEAKER_02 24:22

You know the place?

SPEAKER_01 24:24

I the I've heard it.

SPEAKER_02 24:25

So is it related to Tonto or something? I I don't know.

SPEAKER_01 24:28

No, I think it is related, though, to Native American tribes of the time,

Chime Banking Review

SPEAKER_01 24:33

yes.

SPEAKER_02 24:33

Okay. Uh Lincoln writes, uh, Tom and Don, what do you think about moving my primary checking and savings to Chime?

SPEAKER_01 24:42

You know, I looked at Chime.

SPEAKER_02 24:44

Is that going to be a ring up another sale for Chime? No, sorry. Chime is sort of it's an ad. Go ahead, Chime. Yeah. I've already opened the account and began using it. It has a lot of cool features. I didn't have at my credit union or Huntington Bank. I love the 3.75% APY and savings. And since I'm a Chime Prime member, nice work. I'm getting 5% on a category of my choice. I typically pick the grocery category and 5%, including Walmart and Target. Then I swipe the Chime card up to $1,500 a month. I like the idea of additional, or pardon me, different savings buckets you can create with the savings account too. There you seem to be many ATMs near me. Remember when you used to go to the ATM machine?

SPEAKER_01 25:29

I can't even remember the last time I went to an ATM.

SPEAKER_02 25:33

Yeah, or bank. The drawbacks is no paper checks, no physical locations, and one person per account. What are your thoughts on Chime? How do you ring in on this one?

SPEAKER_01 25:42

There are a lot of online banking services. No, 0.00 on our checking.

SPEAKER_02 26:07

Yeah.

SPEAKER_01 26:10

Yeah, but you keep a little bit to pay some bills.

SPEAKER_02 26:14

Today is a day I looked it up.

SPEAKER_01 26:20

Yeah, I I I have no qualms about it. It's uh it uses two different FDIC insured banks. Chime is not a bank. They they contract with other banks to do the banking services. And uh Yeah, you can't.

SPEAKER_02 26:36

So would you call them would you call Chime sublime?

SPEAKER_01 26:39

I I would not because I'm I'm not a big believer in bad puns, but uh you would if you have the time, you would drop a dime on Chime.

SPEAKER_02 26:48

Okay. Just check it then. Okay.

SPEAKER_01 26:49

And uh I wouldn't even worry about the fact that it rhymes. Um, I'm sorry, folks. Oh, early payday. What is oh this is this is where you know it's for smaller accounts.

SPEAKER_02 27:02

Early payday?

SPEAKER_01 27:04

Yes, you can you can access your paycheck up to two days early because you're on direct deposit and they're pretty sure it's coming. And what they're basically doing is floating you a two-day loan. Oh.

SPEAKER_02 27:15

Don't they have the payday loans you can go do that for only you know interest of years and whatever?

SPEAKER_01 27:20

This is free though. This this is cheaper.

SPEAKER_02 27:22

I like I like free.

SPEAKER_01 27:24

This is cheaper. Um I love the comparison sheet though. They compare themselves with Ernan and Dave and Bridget, which are some other bank apps. Um the first thing is that the number one must most loved banking app. Yeah, Chime checks that the other three do not. Free access, fee-free access to pay. Yeah. Earn free Oh, they have a $200 fee-free overdraft. That's it. Excuse me? $200.

SPEAKER_02 27:54

But no locations. Who has locations anymore other than Bank of America and your credit union?

SPEAKER_01 28:01

And who needs them? Again, I uh it's fine. Weird. Yeah, sure. Okay.

SPEAKER_02 28:05

Spend a little dime, go down

Questions Wrap-Up and Jingles

SPEAKER_02 28:08

to chime. You're all set. That's it for the questions, ladies and gentlemen.

SPEAKER_01 28:10

I'm the jingle man.

SPEAKER_02 28:11

Don't you start tampering with my jingle jobs. Your area, your job.

SPEAKER_01 28:16

Jingle job, jingle job, jingle job mine.

SPEAKER_02 28:19

Oh, that's right. The holidays are just around the corner now that we're we are gonna have holiday themed.

SPEAKER_01 28:24

I already have the Halloween Halloween for the 30th. I've got a Halloween-themed jingle already.

SPEAKER_02 28:31

You got uh Mr. Vincent ready to go there, do you? Kind of thriller. Sort of. Oh, that we're that came on the other day on the on the the Google music machine, and Aria said you could have been that role. You could have played that role. Who, me? Or you. No, you. You speak you.

SPEAKER_01 28:52

Yeah. Yeah, I love doing scary points. All right. Anyway, that's it. Thank you. I guess we're done. That was that was a fast, furious program. I love it. Yeah. How how how did we do time-wise? Let me look at the clock. Oh, look at that, we're under 30 minutes. All right, send your questions in at talkingrealmoney.com using the contact form or speak them in with the green mic down in the lower right-hand corner. And by the way, thank you to all of you uh who have um uh have taken my begging to heart and uh called in a bunch of questions.

SPEAKER_02 29:20

So Yeah, I heard the begging on Friday's show.

SPEAKER_01 29:23

Yeah. Good begging. I do good begging.

SPEAKER_02 29:25

I am you announced the AI portion of that, what it may be, or not? The fact that we have to do that.

SPEAKER_01 29:32

Well, that's coming up.

SPEAKER_02 29:33

It's coming up.

SPEAKER_01 29:34

Well, actually, it will have come up Friday, last Friday. Okay.

SPEAKER_02 29:38

See, we were that's gonna be there's gonna be one of those on the show Friday. Yeah. Okay. I'm looking forward to hearing it. I want to guess the other.

SPEAKER_01 29:46

Well, there will have been one last week.

SPEAKER_02 29:48

Okay. It's very, very confusing the first time.

SPEAKER_01 29:51

I know. We're confusing people. Um and uh if you if you like the idea of getting a little help for free from a real life fiduciary advisor.

SPEAKER_02 30:00

Just know what your portfolio actually has in it and what you're paying for it. You need to know that. Most people don't know that.

SPEAKER_01 30:06

Go to talkingrealmoney.com and uh just meet with one of our advisors. There's no cost, no obligation, and honestly, you're not gonna feel like you were put through the ringer and tried to you know convince to be a client. You're not we're not we don't do that. We don't believe in that, we're not gonna do it. We don't cold call, we don't pester people, we don't believe in those things.

unknown 30:26

Man.

SPEAKER_01 30:27

Debbie and I were reminiscing the other night about the days the dot the days, yeah. Well, here's the thing. I get all these cold call emails from people saying, Oh, Don, listen to the such and such show, and it was fascinating, and I have the perfect guest for you, a guy who believes in gold.

SPEAKER_02 30:42

Apparently you didn't listen to the show very carefully.

SPEAKER_01 30:44

Yeah, right. Well it was AI listening. Yeah. So I've now trained AI to respond and say, no, no guests unless we invite them. Period. So I said, it's just annoying. And Debbie goes, You remember when we used to do that? I went, Oh yeah.

SPEAKER_02 31:00

That wasn't that long.

SPEAKER_01 31:01

Yeah, we did cold call on Wednesday nights. Yes, I do remember hated cold calling. Hated it. Do people still do that? Financial cold calling?

SPEAKER_02 31:12

They think they do it by email and text now rather than the phone.

First Vanguard Index Fund Anniversary

SPEAKER_01 31:18

So but lost that whole little personal touch. Yeah. And while we're reminiscing about the old days, it was 50 years ago that the first publicly traded index fund was created at Vanguard.

SPEAKER_04 31:31

August 76. They called it Google's folly 11 million dollars. The whole darn index buy it all and hold it. Happy birthday, do it, seven, six, six, twelve. Happy birthday, five hundred.

SPEAKER_01 32:12

That may be the first birthday song for a mutual fund ever. So yeah, 50 years ago, Vanguard started the first index fund, and look what happened. Well, thanks for listening. And remember, we're here almost every day.

SPEAKER_00 32:29

Talking real money. The opinions and views expressed on this podcast were current on the date recorded. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. Although information and opinions given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness, or accuracy. Information presented on the podcast is not personalized investment advice from Oppello Wealth. The views and strategies described may not be suitable for everyone. This podcast does not identify all the risks, direct or indirect, or other considerations which might be material to you when entering any financial transaction. Plus performance does not guarantee feature results, and profitable results cannot be guaranteed. We hope you realize that the information provided on Talking Real Money is for informational, educational, and hopefully enjoyable purposes only. The podcast is not trying to get you to buy or sell any financial products or securities. Instead, the program is provided as a public service by Apello Wealth, a fee-only registered investment advisor. See AppelloWealth's ADB Part 2A on our website for information regarding Appellos fees and services. Apellic Capital, LLC DBA Apello Wealth, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in the states where it is properly registered or excluded or exempt from registration requirements. Registration with the SDC or any state securities authority does not imply a certain level of skill or training. Apello does not provide tax or legal advice, and nothing either stated or implied here should be inferred as providing such advice. Thanks for listening, and please visit talkingrealmoney.com for more information and important disclosure related to performance of any specific index or fund quoted in this podcast. And the lawyers get richer.