Rob Luna - Stock Market Investing, Interest Rates, Inflation, and The U.S. Economy | SRS #042

ladies and gentlemen the U.S and World. economy has been on the top of. everybody's mind for at least the last. two years we've seen sky-high inflation. we've seen fuel prices flying through. the roof we've seen IRAs and stocks. going this way precious metals going. this way crypto. going. this way housing market. this way so we brought in an expert on.

the economy we brought in one of the top. wealth strategists in the country. ladies and Gentlemen please welcome Rob. Luna to the show he's going to tell us. everything about what's going on. where we can put our money. how we can keep our money safe and. believe it or not it's not all doom and. gloom there's actually some hope so. everybody. enjoy the show and if you can head over.

to iTunes and Spotify leave us a review. let us know what you think of this. episode and if you would like. we got a pretty damn good newsletter. coming out about twice a month. tells you what's going on with vigilance. Elite the Sean Ryan Show when the guests. are coming on all kinds of good stuff so. go down in the description. click the link sign up for the email. newsletter all right love you all I hope. you have a great Christmas tis the.

season cheers. serious question. who wants to take the best [ __ ] of their. entire life. right here I do how do you do that. you go with bubs Naturals collagen. protein you rip the thing open you put. in your coffee you Stir It Up and you're. on your way now I've taken the best [ __ ]. of your entire life doesn't interest you.

collagen will also give you. beautiful hair. great skin. and nails to die for so and. you'll recover a lot quicker in between. workouts if that's your thing so now. that we've got the good [ __ ] out of the. way get it. let me tell you a little bit about bubs. the company bubs is a tribute company to. Glenn Bub's Dougherty who is a Navy SEAL.

and a CIA contractor who died defending. American freedom in Benghazi Libya. bubs donates 10 of all proceeds to. veteran organizations like the Glen. Doherty foundation and a hundred percent. of all proceeds on Veterans Day let me. tell you about Bub's latest product that. helps with energy healthy digestion your. immune system and your metabolism. bubs Naturals apple cider vinegar.

gummies which actually tastes so damn. good. that I ate all 60 of them the first time. the first night I got them they taste. amazing. and man I got a lot of energy now. anyways go to bubsnaturals.com use promo. code Sean. to take 20 off your order. thank you bubs Naturals for being a. sponsor of the Sean Ryan Show.

[Music]. thank you. [Music]. foreign. [Music].

[Music]. [Music].

[Music]. ER Sean welcome to the show man excited. to be here man great day to be here too. thanks for making the trip. so what like a month ago almost to the. day we're sharing a bus to pause up in. Montana not saying a word to each other. just that the little head nod the. courtesy had not yeah spent about a week. out there and uh never saying hi.

and. sure should now you're sitting here. right in front of me on the show. Lifeworks in uh mysterious ways but I. think like we both said if we knew how. much we had in common we both had our. wives with us on that trip just a. husband and wife trip uh it probably. would have been a bad thing I don't. think our wives would have liked that. much so it's a good thing we found out. about how much we had in common after. that trip I think yeah small world small. world we did we had that photographer I.

checked his I saw him poster guys. we took his class yeah and I was like. who is this guy he looks familiar and. and then. like oh [ __ ] he's one of the top wealth. strategists in the country and he's on. Fox Business and everything else and so. you weren't too shabby yourself so yeah. thank you so I yeah and quite honestly. Sean I am uh you know a little bit. intimidated by all the accomplishments. you've had in your life and how. successful this show has been and uh I. want to make sure I don't screw it up.

for you but yeah super excited to be. here and hopefully I can give the. audience a lot of value today well I. really I appreciate that just just for. the record. I'm nervous too I always get intimidated. talking about things that I know nothing. about in the economy inflation that's. not my strong suit we'll get through it. together but um but just a brief. introduction so man look in India I I. honestly I thought we were just going to. talk about the economy and inflation and. investing and all that kind of stuff and. then I started researching in.

and you grew up grew up on the Streets. of L.A it sounds like you had a really. rough childhood yeah had a very. entrepreneurial type mind at a very. young age uh to survive took a job as a. struck as a stock broker trainee that. eventually what led you to Wharton. Business School. now you're a top-ranked wealth. strategist CEO of sure vest here on CS. CNBC Fox Business Wall Street Journal.

Bloomberg Forbes you name it. you're on it so you're definitely. overqualified and and um and I can't. wait to dive into all this stuff so. kind of where I'd like to start is. is your childhood yeah but um but real. real quick. everybody gets it yeah I heard about. these gummy bears that's the one thing. when I found you I started here and I. said I hope by the time I get there he's. not out of gummy bears so I'm I'm gonna. have you sign this though I don't think. I'm gonna eat this put this up on my.

shelf so those are legal in all 50 yeah. so good you can take them back to. California with him yeah but uh yeah I. thought Bears might be kind of fitting. for this bear Market though perfect yeah. yeah exactly. but so I like to start. every show off with a question from uh. my patreon yeah we have a uh the. vigilance lead Sean Ryan Show community. over there I give them Insight on who's. coming on the show told them you were.

coming on and I had a slew of questions. so if we do have time I'd like to get. like a second exclusive interview with. you sure just for patreon but sure this. is from. Justin Perry and I actually have the. same question what percentage of total. Investments should be distributed. amongst hard assets like land gold. silver precious metals. and how much in stocks and cryptos he. goes on to say that he's scared to.

basically invest in non-tangible assets. because he can't hold him he doesn't. trust them I'm with them on that I get. intimidated by that I I feel like the. stock market is manipulated I'm even. starting to see that. um I don't know if you know about this. but there was a precious metals thing. going on with nickel and I think it was. in England yeah something about it yeah. yeah yeah. you know it's it's uh it's a question.

that a lot of people have and uh I I. don't want to you know shortcut it or. dismiss it but you know the the truth is. everybody's situation is different. um you know when you think about hard. assets for example. um raw land. um you know the the problem with raw. lands it's not liquid it doesn't produce. any income over time you know it does. obviously have value and it's good you. can be able to hold on to it but if you. get into a situation where you have a. 2008 2009 or a situation even like we're.

heading today and maybe a potential. recession going into next year it's it's. pretty tough to get rid of it you're not. getting paid to have it and so if all of. your assets are tied up in something. that's illiquid that's that's a little. bit of a challenge. um where if you have let's say when you. talk about real estate multi-family. apartment complexes for example that's. something you got people paying your. rent every single month you're going to. have that cash flow more than likely. that's not going to drop down as much as. something like raw land but I think what. what you have to figure out first when.

you invest is what are you trying to. accomplish how much of that needs to. cash flow to be able to pay your bills. how much are you just Banking and you're. sending away for five to ten years so. you know when people came into my wealth. management firm there's everyone's so. used to me giving them the prescription. here's what you need to do where I. really have no idea what to recommend. until I understand what people are. trying to do so you know what I would. say is first figure out where are you in. your life so if you're someone who's. just retiring I would first secure cash.

flow through things like bonds high. quality dividend paying companies like. your Johnson Johnson's and coca-colas. maybe some multi-family real estate. really safe secure stuff that you can. get a check from every month and then. once you've got that paid then then you. can see okay well what's left so let's. just say I've got a million bucks and. I've got 500 I need to distribute. towards these cash flow assets right now. I got my bills paid for I feel secure. then you could start to take some with. the rest of it so if you want to. speculate on some raw land if you want.

to buy some cryptocurrency if you want. to have things like gold if you want. some more speculative stocks that's what. I always tell people to do so I know. everyone wants up but 20 in crypto 20. gold but remember we're investing. because we're trying to either obtain a. lifestyle that we don't yet have and. we're trying to invest for that or we're. trying to use our investments to secure. our future or to secure our current. lifestyle so that you know and I don't. think people most people think about it.

that's just a pot full of things that we. think about it more but more think about. what are you trying to accomplish. create an asset basket that's going to. first secure your lifestyle then you can. be a little bit more speculative on. other types of assets what what is your. favorite type of investment yeah I. personally like private Equity companies. I like companies that I know are going. somewhere that I can get in there you. know a lot of people like real estate. because they can get in there and maybe. fix something up add value I don't know. how to even you know hang a picture let.

alone get in there and fix real estate. so I I think it goes down to what can. you add value to so I think a lot of. people can buy distressed properties fix. them up cheaper than a contractor could. sell them for me it's companies I can go. and identify companies that maybe don't. have good management maybe they're not. using the right systems I could add. value to them and I like businesses. because business is cash flow if you've. got a good product so if your Coca-Cola. is always going to sell Coca-Cola. products General General uh I'm sorry. Procter and Gamble is always going to.

sell toothpaste they're always going to. sell uh paper towels no matter what the. economy is and they're able as we've. seen with an inflationary environment. they've done one or two things they've. raised prices or they've shrunk packages. either one of them they've been able to. keep up with inflation really about 150. percent of the rise of inflation so it's. a misnomer that stocks don't keep up. inflation with inflation they're. actually one of the best assets to do. that but you know the problem with stock. Sean is people treat it like a casino. they treat it like gambling and if you.

do it that way it could be very. speculative but stocks over the long run. have been the single greatest asset to. invest and there's been a lot of wealth. created and if you do it the right way I. think everybody should have a good. percentage of their portfolio in the. stock market interesting. you brought up uh people treating the. stock market like a casino yeah and. that actually Sparks a question for me. so you see all these people like me who. don't know what the hell they're doing. yeah yeah and they're on these things.

like Robin Hood yeah I'm not on there. but but you see a lot of them and it. seems like it's like these mafias yeah. of of novice investors yeah just. throwing money at whatever Reddit tells. them to throw them up yeah right what is. that like is that does that make your. job more difficult when that amount of. people are engaging in the markets like. that well you know Sean I mean I. actually welcome it um because I think. what reddit's done. um what you're seeing with things like.

um AMC and they call it the hate. movement all this it's it's actually. creating awareness for the stock market. investing that maybe wasn't there before. you know I I think the information. that's been out there prior to that is a. bunch of Talking Heads talking over. people people don't really understand. what's going on I think at the end of. the day people think that there's these. guys on Wall Street that's so much. smarter than the average person and. that's really not true I think the. average person if they spend a little. bit of time educating themselves can. just do just as good a job as anybody.

else out there so I don't want to call. that the dumb money like other people do. what what I would caution though is. um you know using chat boards talking to. your neighbor that's not a substitute. for educating yourself. um so I I think it's good in a sense as. long as you're not shortcutting things. like even like politics why do. politicians put out 20 30 second ads. because they know that's how people make. decisions but you really should be. looking at the issues it's the same. thing with investing yeah maybe you.

should you can get an idea from Reddit. but do you have the fundamental. knowledge to then go back there and do. the research to your own decide whether. or not it's good for you so I think it's. good in a sense but I also want to. caution people out there that it's it. takes a little bit more to put together. a good stock portfolio than just a tip. that you might get off of a chat board. I'm interesting. and I thought that would have been a big. pain for you guys in this industry with. all those people but um anyways let's. let's get into your childhood that.

sounds I'm. I love it when I see people that come. from a childhood like that make it big. like you have I think it gives a lot of. people. that come from a background like that a. lot of hope you know and uh and and it. it's it proves that hard work and some. Drive uh will take you very far in life. and so. where'd you grow up. yeah. um you know it's the funny part talking. about this is we were just talking about.

this before we you know started the show. is this is a part of my life for the. vast majority of my career up until you. know just about a year or two ago that I. I really didn't let anybody know uh. because you know I spent most of my. career working with ultra high net worth. people a lot of them like I was telling. the average 65 year old white person a. lot of them with ivy league backgrounds. and uh where I grew up was probably the. last marketing effort that I wanted to. use and everyone probably would have ran. the way the other way if they knew the.

true story of that so you know now I've. had a decent amount of success to where. um you know what I what I've found just. kind of my mistake is by telling the. story it's inspired and motivated other. people so I'm kind of happy to share it. you know I grew up well I was born in. New Jersey originally but moved out to. Southern California when I was uh you. know very young. I grew up at initially with a single. mother my dad kind of left at a very. early age the challenge was my mother.

was a drug addict she was an alcoholic. and kind of in and out of rehab and I. had this period of time we moved back to. we were in New Jersey before I should. back up before we moved uh to California. where I spent about three years living. with my grandfather in a town called. Westfield New Jersey which ironically is. on I think a Hulu's show right now. they're doing some show about it it's uh. blown up a little town called Westfield. New Jersey and it was kind of uh uh you.

know American Dream type of town my my. I'm Cuban and Italian my grandfather. immigrated through Ellis Island he was a. masonry and he actually started with his. brother a gravestone business making. gravestones kind of an unusual business. but bought a house uh in the 1940s and. my uh able to give my uncles my mom a. pretty good upbringing. um but it didn't really work out uh too. good for her the reason I bring that up. is I spent three years living with him. when my mom was kind of in and out of.

rehab or just kind of Disappearing and. from age six to nine I still remember. that I really consider that my childhood. and that was kind of a really good point. of time but my grandfather died when I. was nine the house got sold and you know. brothers and sisters split up assets and. so my mom then moved us out to Southern. California. she had a boyfriend out there at the. time and um. you know as I said you know hooked on. drugs what kind of drugs do you know. cocaine primarily eventually got into.

heroin uh vodka bottles all over the. place all the time you know very very. abusive and pretty much every different. way that you can imagine different guys. in and out uh of the house. um. uh yeah we lived in a in an area in. Southern California. during that time where uh 80s and 90s. heavy gang violence it really doesn't. isn't going on there now but just some. of the stupidest [ __ ] you could imagine. you know neighborhood by neighborhood.

like just to put it in perspective here. like uh you know within two to three. miles of a boarding neighborhood because. you were born in that neighborhood there. was these gang territories where there. was drive-by shootings uh going on every. day. um you know people were being killed I. you know I I remember just about you. know every two to three weeks hearing. about either someone I went to school. with or a friend being shot due to just. senseless young violence um I had a half. brother who was out there at the time.

who was involved with gangs um you know. be incarcerated for life in prison for. you know triple homicide during that. period of time yeah triple homicide How. old uh he was 22 at the time uh nine 10. years older than me wow. um and you know it was really at that. point in time the Mexican Mafia that was. controlling The Gangs uh primarily from. inside the prison during that time and. into the best of my knowledge what. happened was uh in the late 90s that all.

kind of stopped because they started to. realize there was huge cracks that. crackdowns and people that looked like. you know looked like gay members. graffiti all that stuff kind of stopped. and they realized like hey this isn't. good for business and the whole. neighborhood gang stuff went away but it. wasn't before you know a lot of people. were killed you know I remember dodging. bullets getting the back window of a car. shot out and not necessarily because. you're a gang member but because you. lived in that neighborhood that was. really the kind of [ __ ] that was going. on during that time and uh you know it.

was just it was a tough time and I. didn't you know shot on there I was. telling you I didn't realize it was a. tough upbringing until I was a dad. myself and you kind of look back you're. like holy [ __ ] like you know and people. asked well were we poor like yeah we. were poor in a sense that my mom was. like so strung out on drugs sometimes. that she didn't even remember from month. to month to file for food stamps or. whatever it is you need oh man so I you. know I remember and I think one of the. toughest things like as a kid looking in. the refrigerator no food there and uh.

you know I was just telling my wife this. story the other day I used to we'd go to. McDonald's or Arby's and we'd we'd get. barbecue sauce ketchup packets and we'd. eat those like and I didn't think of. anything but it was yeah you know it was. a it was a pretty tough time but. um. you know in the same sense I think. everybody has a path in life right. and so. um you know you learn how to be. resourceful when when there's no food uh.

in the refrigerator and so I became a. people person at a pretty early age I. would uh you know get in really good. with my friends and their parents uh get. invited over to uh to dinner to eat and. um uh I learned how to become an. entrepreneur at an early age I mean one. of the first things I started doing I. would see when a friend would get a new. bike you'd have an extra bike and I'd. say well hey what are you gonna do with. that like I don't know I said why don't. you let me sell it for you and I'll give. you a percentage so I started cutting. the consignment business with bicycles.

how old were you uh I was maybe 11 years. old 12 years old at that time when I. first started doing that and I started. doing okay with that obviously the jobs. like you know washing people's cars. cutting Lawns uh there's this there was. this thing called the student work. program in La which is a total scam I. think this guy would pick us up after. school in a van we'd get a box of candy. we'd sell basically at the time in in. the late 80s uh 12 Snickers bars and ten.

dollars Reese's and it was you know. supposed to go to some student program I. think it was the guy in his van he was. getting you know 80 of it but but you. know it was funny I was I was telling a. friend about this the other day and. people were like you're you're a great. salesman I said well I don't really. think I sell I just listen to people and. I try to give them what they need and. you know I tell the story of you know. going door to door when I was 13 14. years old selling candy that was super. expensive if you never have sold door to.

door it's it's probably one of the. telemarketing which I've done is tough. but going door to door and knocking on. somebody's door during dinner with a box. of candy you're trying to sell them. isn't the easiest thing but you know. they'd come out and I'd have my pitch. from the student work program and I'd. show them a Snickers bar and well we. don't eat candy but good thing I had tea. in there and I had a coloring books. whatever it was and so you know it. taught me I guess in my some of my first.

early economic lessons uh how do you. price things how do you sell things. um how do you relate and understand with. people and value people. um became very important. um but you know. kind of fast forward it a little bit you. know did a lot of those things to kind. of get through. um you know my mom was kind of in and. out of my life I I slept on I don't know. more couches than I could remember I. spent the last year and a half uh of. high school living with my girlfriend's. parents so yeah it was a pretty.

um a pretty shitty life I would say. being a dad now and looking back and. obviously like you are realizing [ __ ] I. would never want my kids to go through. it but you know I don't I don't regret. any of it. um and uh you know it I got involved. with sports. um during that period of time and it was. really I think that that provided me an. opportunity. um to get out of this situation because. I think if I wouldn't have gotten out of. La when I did to go to college when I.

was 18. I'd either be in jail dead. um or I don't really know what would be. happening you know one one story I I. never told and this is kind of what was. the Catalyst for me to get out of. Southern California when I was 17 years. old we were at a high school football. game and uh you know kind of a big fight. broke out after that rival gang members. and everything that I was kind of caught. up in the middle of and uh somebody.

there next to me where everyone was kind. of fighting it was like 50 people fist. fighting at the same time. one of the guys that we were fighting. with somebody else who I knew from the. neighborhood an older guy uh came and. stabbed this kid like three times in. front of me yeah. and I was like [ __ ] like first time I. saw and I'd seen these things but right. next to me and uh you know everyone kind. of ran at that time we took off and uh. about maybe 20 minutes later police lap.

PD came 10 cop cars Chopper and. everything and about 20 of us in front. of a house got pulled over to the side. they took all of us and I was 17 years. old they took all of us in to kind of. the holding tank and started questioning. us one by one over about a five or six. hour period of time and at the end it. was um myself and one of my friends left. everyone else had been released. now so quick what's going on here when.

are we going on like you're not going. home and they took us to juvenile hall. this when I was 17 years old this is in. San Bernardino California and uh put us. into I'm like what are we what are. what's going on well we'll let you know. they put us into a holding tank woke up. in the morning they pulled us in. put a red band on my wrist I'd never. been in juvenile hall never been. arrested before and they said they're. going to go to unit eight because you're. being charged with attempted murder. I said wow uh attempt and uh kind of.

fast forward the story a little bit the. short of it was. they were questioning this kid had come. by. um identified he didn't know exactly who. it is but he thought it was my friend or. I who stabbed him and he probably didn't. know exactly who it was because what was. going on and you know I I clearly didn't. do it I knew who did it. um but kind of the code was at that time. you don't you don't tell who did it yeah. right and um you know this was a 23 24. year old guy at the time and he would. have been sent you know a gang member.

had been in and out of prison and. um you don't tell and if you do your. family is going to be killed you'll be. killed and so you'd rather just go to. jail at the time and so didn't say. anything just said you know I didn't. know who did it and kind of took the rap. and proceeded through the system and. then in about you know 60 days uh my. public defender they're great they were. able to get it down to uh kind of a an. assault charge with the misdemeanor and. said hey you're going to be on probation.

for your do you want to take it and I. said yeah I want to take it it's better. than getting sentenced as uh an adult. which they were thinking of doing and I. would have never obviously been in the. career that I'm at so got released and. um went back finished my my last few. months to high school and uh my. wrestling coach said hey got an. opportunity for you to go out to Arizona. wrestle I've got a job set up with you. that started at JC and go into Arizona. State and he goes I suggest you take it.

I said I think you're right and uh you. know I took it and uh you know kind of. the rest of the story is you know we we. can get into but uh let's go back real. quick yeah yeah so growing up in an area. like that I could I and being surrounded. in that kind of environment. I would think it would be really hard to. find a positive role model yeah. obviously you found somebody who was a. role model yeah I I think it was coaches. that I had a few different coaches. during the time my baseball coach my.

wrestling coach and you know that and a. few people have asked me this in terms. of like who is that one person who. really turned you around. well I think a lot of it was myself like. I don't want to take take away credit. but it's like yeah they were there but. there's a lot of other people and it. wasn't like they were sitting me down. you know an hour or two hours a day I. just I just always thought Sean like I'm. better than the situation that I'm in. not to disrespect her but I would always. look around the room and say God like. I'm way smarter than these guys but I.

just didn't see a clear path out but I. always kind of felt like that would. happen and I always managed to you know. that was one situation I got myself in a. little little bit of trouble but I. always managed to avoid like I never. stole from anybody I never heard anybody. even though I saw that stuff going on. um I always managed to just be a little. bit too late to something or not show up. I always kind of can keep myself in. sports to just barely skirt those types. of situations but there was one thing.

after that arrest there was a a police. officer actually that came to me who. knew me from the neighborhood and just. kind of what I always believed what I. was telling you that I was a little bit. you know just better than that and that. really wasn't where I belonged he pulled. me aside when I was released and he said. you got to get the F out of here he goes. you are too good for these guys you were. too small and he just said exactly what. I told you and it was the first time in. my life that anyone had ever told me. that and and and mind you you know I'm.

uh if you look at me I'm like I said I'm. Cuban and Italian but I'm pretty. racially ambiguous no one knows exactly. what are you are you are you Arab are. you Mexican like no no one really knows. like growing up in an Hispanic. neighborhood during that period of time. um because of heavy gang violence I. started driving you know right at 16. between 16 to 17 I was probably pulled. over in my neighborhood within a three. mile vicinity. 60 70 times normally at gunpoint wow.

because just what police did during that. period of time because they were afraid. like police were being shot at during. that period of time so if anyone would. have had hatred for the police and I. wasn't doing anything never in trouble. wasn't carrying weapons or drugs like. you know they were they were looking for. it would have been me but it was that. police officer which is why I respect. them so much today for for various other. reasons besides that but. um that just was the first person to. ever tell me that and it was just that. was kind of all I needed so that's why.

us doing things like this sometimes. person just needs to hear you can do it. um yeah it was my parents my father. never told me that I saw a few times in. my life my mother never told me that it. was always the opposite you're such a. piece of [ __ ] you're never going to be. anything that's what I heard my whole. life so is that one thing right before I. left and then you know literally a week. later this opportunity came I took it. and just. all that [ __ ] I said once I had an. opportunity to get into the industry I. said I'm going to be the best I can I'm.

going to outwork everybody I'm gonna put. everything into it because this is. probably the one shot I have in life to. make something out of myself and I wound. up working out okay man that's amazing. yeah that is amazing yeah I mean. damn good you know yeah like I I look. back and we were talking earlier like. everyone's got a cross right you know. what you've gone through and other. veterans have gone through other people. that have grown up in other countries. like way you think you know you think of. poverty in the U.S go to somewhere like. India or some of these other countries.

and you see what so everyone's got you. know their own cross to bear and I never. look at it like oh poor me as a at all. um and like I said I didn't even realize. it was bad so I was older and I was like. [ __ ] like I I won't even let my daughter. cross the street by herself right so so. uh you know I didn't realize it was that. bad but you know in the same sense. whether it was my situation or anything. else I think it's one or one or two. things like people could either use that. as a catalyst which is what I did and.

I'd look at you know my my mother and uh. my family and my situation realize [ __ ]. I never want to do this in my life and. I'm gonna do everything the opposite. um and motivation or you can use it as. an excuse right and I think more people. unfortunately use it as an excuse and it. prevents them from ever doing anything. in life and so that's why the only. reason I'm sharing this now is because. you know I'm just hoping where someone. says well yeah that's me or maybe well.

maybe I wasn't that bad and maybe I can. use that as a catalyst instead of using. that as a continual crutch I mean now. it's like. and like people who can't deal with any. adversity these days like they go to. Starbucks instead of getting oat milk. they get almond milk in their latte in. the freaking days ruined you know so. it's just like you know that that's why. I share it just to say like look no. matter where you came from no matter how. hard it is if you let that be an excuse. and you let that be the roadblock From.

Success it's definitely gonna do that or. it could lose it as the opposite to. around my bear Market well [ __ ] I've. been shot at I I haven't eaten in. daylight yeah losing 20 of my stock. portfolio I think I think I'll get past. this like you know the diversity I deal. with today is is much easier than the. diversity adversity I grew up with well. I'm glad I'm glad we're talking about. this because. you don't know what you don't know it's. and and so everybody that is stuck in a. situation like that right now yeah and.

even even beyond that even gen Z and a. lot of Millennials think that the. system's out to get them and they can't. buy a house and and there's this huge. movement now to just. if if it's a little bit hard to get done. then let's just victimize ourselves. exactly and come up with an excuse and. yeah and and then to hear a story like. that where you've made it completely out. of that and you're. really you're on the complete opposite. end of the spectrum now. that's amazing yeah well I mean yeah I I.

agree and I think it's um you know one. of these things our system our. government. um has all wrong today right it's the. it's the old outage of uh teaching man. the to fish versus giving the fish and. we're so focused on giving people the. fish that you know they don't know how. to fish for themselves anymore yeah and. it's one of those things you know just. like when I was a little kid I I. realized I was better than that. situation when I first started working. when I was you know 19 20 years old in a.

real job. um I remember people complaining about. you know the rich and taxes and. everything and and um you know a lot of. people you know were were against you. know people that were millionaires or. whatever and this whole movement of like. well let's tax them and and I I always. said well well no I I I'm eventually. going to be there I I just want the. opportunity to get there and when I get. there I don't want the government taking. half my money right and it's just like. when I I you said I I uh service I sold.

my business a few years ago. and um you know this is a business I. started with no money. um. I worked out of my bedroom I couldn't I. couldn't afford to rent a place I worked. out of my bedroom uh the first year I. started I couldn't afford to pay my. bills so my friend had a detail business. I was washing cars on the weekend at the. golf course. um I was doing you know different jobs I. was buying stuff and selling it on eBay. this is this is with a college degree. and I was a stock broker at the time but.

I couldn't afford to pay my bills. um I had credit card debt at the time uh. the reason I tell you this but I I built. this business up uh to where I sold it. for for several millions of dollars and. when I saw the check that I had to write. to the state of California and the. federal government man like I I just. couldn't believe it you know because. they were never there for me the years. where I couldn't afford to pay my bills. and and then when you see what they do. with the money is even worse right and. so um. yeah yeah so so now you're looking to.

get out of California so now yeah that's. right yeah outside of obviously doing. your show we're looking at some real. estate while we're here this weekend. because uh yeah I just I I can't. continue to pay them the money I can and. I you can't even send your kids to the. schools you don't even feel safe on the. streets anymore. um you know I talked about gas over. there being almost three dollars a. gallon more with half of that just going. to special interest taxes it has nothing. to do with the price of uh a barrel of.

crude oil it's it's about special. interest in Californians uh and you know. uh Capital goes where capital is. appreciated and I think the state of. Tennessee gets it a little bit better. right now we do we'd love to have you. I'm not gonna lie I was a little worried. when the last couple years I've been. worried seeing all the people from. California moving here yeah but uh. we're just taking all the best ones and. bringing them over so it's working out. pretty damn good to be honest with it. but um let's go back to school a little.

bit so you went to Arizona State yeah. yeah did you continue on with that. entrepreneurial mindset yeah I went to. Arizona State I um so I started um with. a firm called Waterhouse Securities uh. there were New York base firm out in. Arizona during the time. um worked for them while I was going. through college they then. um were bought out by TD Ameritrade and. they moved their operations to. California and I actually bought my. first home in a place called Mesa.

Arizona when I was 19 years old in. college 19. I was 19. I was working a. telemarketing job two telemarketing jobs. after school and I bought my first home. fifty six thousand dollars in Mesa. Arizona was a two bedroom one bath I. think it was about 900 square feet uh. but I learned really early on I wanted. to be an investor I wanted to own. property and uh when they came game and. said hey we can give you a job out in. San Diego if you want to move I said. that might be nice I was from Southern. California and by that time like maybe. it's safe to go back it looked like it.

was getting a little better out there. until I looked at what the price of real. estate was and I realized that to rent. an apartment out there was going to be. twice the price of what my mortgage. payment was so decided to stay out there. uh and then wound up getting a job for a. hedge fund during that time and then. with the hedge fund. um I was working on the institutional. side but in 2001 2002 the market that. was the previous market crash of the.

technology bust we started getting a lot. of individuals that wanted their money. managed and so I realized okay why don't. we start a private wealth management. side where we deal with individuals and. so I wanted to do a designation programs. uh specific towards that and there was a. program through Wharton at the time that. I applied for got accepted to that and. then uh from there went out to Wharton I. met Jeremy Siegel as the offer of stocks. for the long run just kind of. life-changing uh meeting with him and.

decided you know a couple of things. first of all. Warden was a little bit different than. some of the stuff I did at Arizona State. yeah the level of Education there was. just amazing and realized it's something. I wanted to be a part of applied for. their Advanced Management program which. I graduated from got a became of an. alumni which then allowed me to become a. fellow which I was a fellow there for. about four years so I spent about five. years with Warden and just some of the.

greatest. experience in my life really really. changed my life and it's what inspired. me to leave the hedge fund in 2002 and. start my own firm. um you know first year wasn't that easy. but ultimately wound up being a success. of mine and then towards the end of the. firm went back to school again did a. dual dual MBA program in Singapore and. in California UCLA Anderson the National. University of Singapore where I was an. executive program where I took my.

business into the classroom built it up. learned how to scale it and uh you know. left in 2016 we were growing 10 12. percent a year 16 to 19 we tripled. Revenue year after year after year and I. learned okay I finally understand what. scaling means all these things that I've. been practicing and learning for you. know the last 10 15 years came into play. and uh was able to sell that business so. education like I say and investing is.

just absolutely saved my life it's been. a game changer and what I love about it. it's a skill set that's allowing me to. help change other people's lives because. there's so much misinformation so much. abuse out there of what's going on in. the financial services industry so you. know if you hear about how I grew up and. then what from 18 to now at 48 years old. what my life's look like it's been the. absolute opposite exactly not the path I. was supposed to be on uh but.

tremendously blast and we're as we're. talking I'm now at a point my career. where I'm looking to give back and kind. of you know there's no such thing as. really as true altruism I guess it's not. that I don't get paid for what I do but. I'm able to work with someone whether. they've got two dollars or they've got a. bunch of debt now to where whatever it. is they have to you know kind of give. back and help other people you know put. them on the same path that I was able to. fortunately find myself on that's that's. got to be pretty rewarding it's amazing.

you know it's it's it's really good I. mean some of the things we're doing. today and I've got another analyst that. works with me and goes you know I just. helped a family open up their first. brokerage account with 200 and I feel. better than some of the things we've. done with families for 100 million plus. that we've been managing for the last 15. years it's much more rewarding wow and I. agree with that that's awesome to hear. yeah so you you built. you basically built your business in. school. I did well so I built it um about seven.

years before I went to school but you. know it's one of these things where. I always tell people it's it's pretty. easy in the U.S to take a business and. go from zero to a million like I I hit a. million dollar in my first million. dollars in income in my early 30s and I. just did that by just busting my ass my. working seven days a week calling people. all the time bugging people showing up. five minutes early at everywhere staying. 20 minutes later where I think if you. just bust your ass and work hard because.

fortunately for people who want to do. that most people don't you stand out in. a sea of. um mediocrity right and you're able to. do pretty good and you can just get. yourself there but to take your business. past that you know like I said I hit. that ceiling about seven years into the. business where I couldn't grow because I. couldn't scale I couldn't get Beyond. Myself and I didn't necessarily create a. business. um like a lot of people I tell them you. know I really just bought myself a job I.

probably could have been doing the same. thing in Merrill Lynch or UBS I wouldn't. have been to do it under my own terms. but it wasn't a scalable business people. were buying me and so the problem was I. couldn't spend any more time with anyone. else I was maxed out I couldn't work. more than 12 hours a day 13 hours a day. I couldn't work more than seven days a. week and that's where I really got. frustrated is like how do I get to that. next level and so a lot of people were. confused because I was 38 when I went. back to school like why are you doing an. MBA spending 150 000 another two years I.

said because I I just don't know how to. everyone keeps telling me scale that's. like the buzzword scale scale I don't. know what that means you know I'd have. been out of school for a while and. um I learned a little bit about an award. and but I said like I need to spend a. little bit more time in the classroom. Focus specifically on this and so I look. for programs and so this was an. Executive MBA where you had to have at. least 10 years of work experience in it. and so. it was really geared towards people to. where the last three years of my.

business I basically went into the. classroom and took my business model. pressed other students press professors. and got them to help me rework a plan to. really learn how to scale it and once I. implemented that I was able to see just. tremendous growth how do you hire how do. you create systems how do you create. processes and as I said like I was. growing eight ten percent the previous. four or five years we grew a hundred. percent year over year over year to the. third year until we were bought and you.

know I work with entrepreneurs during. that period of time as clients and I. started implementing those same things. into their business saw someone's. business go from a five million dollar. evaluation to about a 80 million dollar. valuation in two years and I realized. should I've got something here and so. for me when I sold I sold to a publicly. traded company so you get the big when. you're selling whenever I tell people. when you sell your business where let's. say eight ten million dollars and above. it's not like Joe below the accountant. coming in to do the due diligence. they're sending the big accounting firms.

in there they're doing heavy due. diligence a publicly traded company. turning over all rocks and when they. bought my company from me you know I. could help other people you know sell. you know Buy sell businesses but when. you're doing it yourself it's a little. bit different right when they're. checking under the hood when it's your. money that's at stake and I was 100 over. under owner of the business at that time. when I sold the business and I saw what. I was able to do and this was in. 2019 that was really the validation to.

where okay I gotta I got it figured out. now I know what I'm doing I've done it. for other people now I've done it for. myself and I realized I want to show. other people how to do that on scale. because there's a lot of entrepreneurs. out there that are working really really. hard but they're not working smart. there's things that they can do to. change it and it's and it's the same. thing with investing Sean and why you. know you asked about this Reddit. movement the shit's not really that hard. once wait it's just it's like there's. things things that you do right to where. it's like well how do you do that like.

you and it's really not that hard but. our industry uh big consultant firms. like Accenture and McKenzie everyone. wants to keep this stuff a secret so. they could charge people thousands of. dollars a year but it's like if if. you're willing to work with me and put. in some effort for a year two years your. life will change and because you're. going to learn off mistakes that clients. might have made I've made for 20 years. for I'm an alumnus of four different. schools that I've gone through to create. this this road map [ __ ] I'm I'm gonna be. 50 in a couple years I wish I would have.

learned this 20 years ago but at least I. finally got it and now I'm trying to. teach younger people how to do that. themselves that's a that's awesome who. can you say who bought your company yeah. the company is called CI Financial so. they're uh they were a Canadian company. at the time Trader on the Toronto Stock. Exchange they wanted to get into the U.S. market. um so I uh and they were going to do. that through M A so I was the first. business they bought in the US and they. kind of used that and scaled it up we're. just under a billion dollars and over. the last three years they've scaled it.

up to their about 150 billion in the US. and they're now uh they went public on. the New York Stock Exchange about a year. and a half ago also so a very fast. growing company wow how did you get that. deal in front of them yeah so and it's. everything I'll tell you like one of the. keys to success. um Sean just like how we met is. relationships um you could be the. smartest person in the world but if you. don't have somebody that's willing to. open a door for you it's not going to. really mean anything to you so going. back to Wharton um Jeremy Siegel was.

involved with a company called Wisdom. Tree it's a big ETF fund which is like a. mutual fund type of type of deal they. asked he asked me to go and sit on the. board over there so I sat on the board. for about a year of Wisdom Tree and the. guy his name is Kurt McAlpine who was uh. kind of next to be CEO of the company. was recruited Away by CI to be the CEO. of CI Finance he was 38 at the time the. youngest CEO ever of a publicly trading.

company over there and so he had to sell. them pretty hard of how they were going. to grow they'd always hired from from. within was the first time they looked. outward he said I'm going to grow your. business into the U.S and we're gonna. we're gonna grow and scale uh the Ria. business which means registered. investment advisor which are firms that. give advice for for a fee and he said. I'm going to grow and scale that. business and uh two weeks after he was. hired. um from what he tells me that was the.

first call that he made uh here in the. U.S and he said hey I I want to talk to. you about something and we sat down and. I had no idea who the hell CI Financial. was but I'm a i i why why going back to. why I like investing in businesses I. like people I invest in people and I. knew Kurt was going to be a rock star. and so my bet was on Kurt and uh kind of. went in and sold to him I said hey I'll. I'll give you three three years Kurt I. don't I don't know that I'm going to. survive well on the world of publicly. traded companies but I'll I'll give you.

three years and uh wind up selling to. him and uh it's been a good run but I've. realized I'm not a publicly traded uh. kind of guy I'm an entrepreneur at heart. and so you know this is the next month. will be my my last month there was it. hard for you to sell your baby like that. you know it it wasn't it wasn't it. wasn't Sean because a couple of things. um. I realized even though I was able to. grow the business exponentially for the. last three years I realized there was a. lot of Legacy issues that I didn't like.

and I also realized in that business. um that we were overcharging people. right I realized as I was able to scale. um these certain things can be done a. lot more efficiently a lot leaner than. what we're doing before and at the end. of the day what I wanted to do was. create a system and a model that was way. cheaper than what we were doing but the. problem was if I'm going to charge 20 to. 30 percent more or less I'm sorry 20 to.

30 percent of what I was charging but my. cost structure to advisors for example. is way higher than that well I can't. charge my Top Line less than what I'm. paying my advisors that's not going to. work so I had set up a business model. that I was pretty much trapped into and. so when they came along I said this is. probably a time to get out and I. negotiated obviously it's where I said. if I could just get enough money to kind. of take care of myself and my family. spend these three years that'll allow me. to then go and maybe not build the.

business that I had but the business. that I want to build and that's kind of. what this gave me the opportunity to do. because I just think the traditional. wealth management model the way Wall. Street does things right now you know. it's just broken it's too expensive it's. too slow it's not giving people what. they need but it's kind of hard to. disrupt yourself right you got to be. able to feed yourself and so it was kind. of the right opportunity to allow me to. kind of get out of a model I didn't. believe in any longer interesting very. interesting let's take a quick break yep.

ladies and gentlemen it is that time of. year it's Christmas time the snow's. coming the cold weather is coming the. ice is coming and because of the ice. unfortunately the power outages are. coming too. you're going to want to have. some my Patriot Supply food stored for. when that power outage comes because. you're not going to be able to go.

anywhere because the roads are all going. to be ice whether it's because of an. earthquake a tornado a power outage a. hurricane whatever you name it it's. never a bad idea to have a little extra. food on hand just in case just like a. fire extinguisher or a first aid kit. it's just good to have one on hand. at all times if you order right now. you're going to save 100 on a four week. emergency food preparedness kit from my. Patriot Supply my Patriot Supply is the.

largest preparedness company in the. country with millions of satisfied. customers already they're lowering their. prices so that your family can fit. emergency food into your budget let's. face it we're all gonna need it at some. point go to mypatriotsupply.com right. now and grab your 100 in savings on each. four-week emergency food kit that's my. Patriot supply.com.

every single night I was killing people. in my dreams. buddies would die I was killing bad guys. over and over again and they're just big. bodies it's like a video game taking. them out. [Music]. sometimes my gun would stop working and. they were like advancing that I'd wake. up. [Music]. my war with my battle was like in my. dreams.

you enjoyed those dreams. [Music]. foreign. [Music]. felt different than the other ones. so we go to his little computer he's got. KBR contractors truck drivers from like. the Philippines. staked on the side of like this highway.

in Iraq. [Music]. the huge roadside bomb and I remember. going out to the the Prime Minister. wanted to go out there and look and I. remember just seeing like shoes flying. the streets because then the people. blown out of their shoes. oh. that's one thing crazy about killing. some of those engagements are close real.

close come here dude. and you're holding dead bodies as they. fade. [Music]. all right Rob we covered a lot of your. background a set of a couple of. questions yeah. how long did it take you to make your. first million doing that.

my first million in the industries I. started my early 20s probably about. my first first year I made a million I. think was 32. so probably about 12 years. 12 years yeah 12 years and. um you know that's that's you know. that's another point I think it's a. tough it was a tough industry but I. think there's a lot of tough Industries. to where I think people give up a little. bit too soon on things you know I've got. a buddy who I always talk about I use. them as an example unfortunately but he. was in that same training class at.

Waterhouse that I was in we had the same. opportunity but when things got tough in. in 2000 we weren't making any money he. decided to go to leave the industry and. do some sales job I forgot where but I. didn't talk to him in a few years and. then it was you know made public when I. sold my business he called me up and to. congratulate me he said you know what. man I wish I wish I would have I wish I. would have stuck it out I wish I would. have stayed in the industry and he's he. said I made a mistake he goes job. hopping this to that to this to that.

trying to catch the next trans selling. solar doing all these things and he said. dude I'll be lucky if I could even pay. my mortgage this year I barely scraping. by but it's two situations we both had. this and he he he uh he had a pretty. easy childhood unlike me maybe that was. part of the problem right as things were. a little bit too easy but uh yeah it. took me I tell people before I knew what. I was doing as a financial advisor and. before I made any money it was over a. decade that I had to stick through it. when you hit your first million did you. feel this huge sense of accomplishment.

or. was a that's great let's get back to. work. um reason I ask is because. a lot of high performers a lot of very. driven people that never I'm one of them. yeah I never take the time to celebrate. the wins as always I'll get all pissed. off about the losses yeah yeah but I. never take time to celebrate the wins it. drives my wife crazy well you as you.

said that I'm thinking my wife's trying. to give me the change that a little bit. you know I um I'm just trying to. remember back how I felt and give you an. honest answer but yeah to that point I I. don't. I don't think so because my whole idea. is where I knew where I wanted to go and. I was still so far and one of the. blessings and curses about my business. you know I was working with people that. were worth hundreds of millions of. dollars right so so it's all relative to. where we're like I made a million but. that's not even my this guy's tax bill.

last year was three and a half four. million bucks so yeah I never consent in. today by no means do I consider myself. wealthy so. um I I just say that because you know. people want to know like how for some. reason that's the mystery number how. long did it take you to get to a million. bucks I think I think it was I was 31 32. so about 11 to 12 years before I made my. first million okay yeah when you started. how are you Mark how were you getting in. with these people yeah so so great. question so um when I first started when.

I first started in the industry you know. they told me Sean was. um write down a list of all the people. you know that have money and then and. give them that's the [ __ ] the truth of. God's Own is true then of them give them. a call and see if they'll invest with. you so that took me about 14 seconds to. act like I was gonna write something. down no I didn't so I started cold. calling I started calling people out of. the Yellow Pages uh back then when. people used to do that and I brought a. few clients on but I think going back to. relationships I had one opportunity a.

guy named Anthony Pinto early on in my. career my first year he was a CPA from. Brooklyn he was out in Arizona at the. time and met him and I asked him to. manage some money for him I didn't even. know he was a CP at the time and he said. yeah tell me what he did he said look. I'll give you one of my accounts and one. of my family's accounts and you manage. it for a year and if you do a good job. I'll then refer you to some of my. clients and people don't know for. financial advisors the best place to get.

business or referrals is from a CPA. because the CPA is looking at how much. money they make what type of things they. should be doing on the investment side. died and a lot of people trust their CPA. so for recommendation comes from him. it's usually pretty good so I credit. Anthony uh this was back in 0203 for. really kind of putting me on the map of. my first million million dollar types of. clients before then I was working with. just about anybody uh 20 grand through.

whatever it is you wanted to invest I. was doing it that was my first time that. now that I was excited about because the. first time someone gave me a million. dollars to invest I was like [ __ ] okay. finally you know I was 20 something. years old and I came from from nothing. and I said okay and um you know that. person is still a client today I think. she's 81 years old now she's been a. client of mine for. um you know almost 20 years and uh she.

is uh out in New York my wife and I just. went ahead uh lunch or throughout New. York a couple weeks ago uh just a great. woman and that's you know one thing you. got to just appreciate the people that. that gave you your start and so yeah. without her and people like Anthony it. never would have opened the door and. it's just one of those things that's. like. um what is it Roger Bannister once he. broke the was it three minute mile or. whatever all of a sudden everybody. started to do it right no one believed. they could do it so once I broke that. Millie that gave me the confidence to.

where I am my minimum is a million of. course you know so just one Million. Dollar Plus client came and then it was. five million minimum 10 million when I. finished it was 25 million dollar. minimum just a few years ago well coming. from uh the background in the childhood. that you came from were you intimidated. by the Yeah I was a wealthy yeah I was. super intimidated. um for probably the first 13 to 14 years. and I and I had especially when I made.

you know that first million dollars and. so yeah I guess now that I'm I'm. thinking about it. um. I had imposter syndrome right I was. thinking like I shouldn't be making you. start guilty or like am I telling people. the right thing am I putting them in. something that I shouldn't be like I. really started worrying about like why. am I making a million dollars so when I. think I never really. congratulated myself I was just worried. that it could end you know because I. knew where I came from and I never. wanted to be poor again and again I was.

dealing with people that were just so. far away from what I grew up with or out. of my league and so outside of learning. Finance I was going to first growth. Wineries and I was learning about Fine. Art and I was learning how to tie a. double windsor knot and so I was trying. to immerse myself into that culture and. so gen with a genuine interest and I. wanted to learn it but in a way you're. like you feel like a little bit of an. imposter and and quite honestly I. started to learn so much that I had. people that were 65 years old coming ask.

me about what wine to buy when I was 30. or 31 years of age so. um so yeah I mean I felt uh I felt a. little bit guilty a little bit worried. um but then it's a little and definitely. intimidated until. um I became an alumnus award and so. that's why I even like Wharton doesn't. need any money but I give them money. just because they bet on me right they. gave me a chance and then and I I got I. even bought the big book right for Ward.

in the year that I that I got out of my. status and my name was in there like and. I had no family members even knew what. Wharton was or anything I don't have one. family member that I talked to now but. the sense of Pride and accomplishment. and um that I had and I started to. realize about 10 years ago. um that I was pretty good at what I was. doing and I I started learning that when. I would go away from the people that I. listened to on television books that I. read and did things the way I thought. they should be that the results were.

actually better and so I had you know it. took me about 15 years before I was in. the industry I started doing things on. my own to where I started to believe in. my own opinion my own credibility. because I saw it and I saw things I was. doing on the side with my own money. versus what I was doing more industry. specific and Status Quo for my clients. that was what everyone should be doing. and I was making two to three times more. money. there's there's something wrong with you. know this it's called modern portfolio.

Theory that's been taught since the. 1950s that everyone just kind of follows. and I don't believe in it I'm doing. different things with my different. things with my money and then that's why. I started working with higher net worth. clients because they had you know when. you deal with higher net worth clients. in my business you could take on some. more risk with them they have money that. doesn't have to be in the traditional. types of models and so I started. implementing those strategies with them. and that in terms of my career in. business has started getting me working. with the ultra high net worth. celebrities athletes that's what did it.

is when I started delivering returns to. them and that's I think the point in. time where I realized okay I deserve to. be at this table and now I'm at a point. where. um I I feel like I could sit with. anybody as long as I'm talking about you. know economics or finance and I deserve. to be at that table we might have a. difference of the opinion but it's. really good when you know you can't be. discredited yeah but that takes a long. time you know and I still have long way. to go but it takes a long time to feel. that level of confidence I think once. you do that that's that's really when. you know you feel freedom as a person in.

what you're doing that got rid of the. Imposter syndrome scale in your business. yeah. how did you scale it so you you went to. school to learn how to yeah actually. what is your definition of scaling the. business yeah so the definition of. scaling the business is you know what I. always ask people right I could ask you. is. um if can your business. function without you. no yeah it's the first asking I asked.

entrepreneurs and um most of them will. tell me no I said okay and then some of. them will tell me yeah probably I said. okay. second question. can your business grow without you. and then most of them will then say no. and so the idea is how do you create a. business that is able to function first. and then grow without you being in there. because if you haven't done that you. really just bought yourself a job and so. the whole idea about creating a business.

that has Enterprise Value is it becomes. your largest asset when you do it. correctly right so I've done a lot of. investing real estate stocks bonds. cryptocurrency that hasn't worked out so. good so far but um uh baseball cards. nothing nothing and some really home. runs that I've made but nothing nearly. as much as money I made in selling my. business and remember I didn't put any. money into my business I started with. credit cards and the multiple that I got. and the absolute dollar amount I got was.

higher than anything else and that's the. power of building a business right. that's why I try to teach everyone. entrepreneurism you you built your. business off credit cards oh yeah off. credit card debt yeah I started when. people asked about how much money did. you started I didn't have any money I I. borrowed money I had credit card debt to. start the business because I couldn't. pay for the licensing I couldn't pay for. the software I didn't have any I had a. few thousand bucks saved but I had. expenses and so credit card debts and uh. at the time my my wife was working and I.

was washing cars on the weekend that's. how I started my business. you know and so when I sold it for I. can't say the number but it was several. millions of dollars that I that I sold. it for. um that was you know it was. life-changing money for me. um that I sold and that's what I I try. to teach people because everyone wants. to know hey Rob how do I how do I get. wealthy how do I make money and everyone. wants me to you know they see me on TV. like what stock what stock or when it. was crypto is hot what what coin do I. buy or where should I buy real estate. and the truth is that's not going to get.

you wealthy because if you got five. grand and I tell you something that's. gonna even go up 20 something percent a. year well what are you gonna turn that. five grand into 20 grand 30 grand it's. not going to be enough right and so. again back to when they came to me and. said hey call the people you know about. money well [ __ ] I don't know anybody. without money what else do I do so I. tell people who don't have money to make. more money is you got to start a. business dude and you got to first get. that business to where it's making. enough money to pay your bills okay job. number one number two to where it's. making excess money into where that.

excess money is what you send start. putting away and gradually every year. now you're investing your business first. makes an extra 10 grand you invested. then 20 grand and you invested and 40. Grand you don't keep upping your. lifestyle in excess of your business you. keep that behind there but then what you. need to focus on is how you make this. business your biggest asset so how do. you take some of that money put systems. in place put processes in place put. people in place to where eventually that. business can grow and operate without. you and that's when you've created a. business that has Enterprise Value and I.

told people if you can do that. that's what's going to create real well. for you I don't know how to create. wealth any other way I'm sure there's. ways to do it but that's what I did. that's what I've helped other people do. and you can only teach what you know. yourself so people who invest in real. estate because they know it I get that. if you're able to become a. multi-millionaire billionaire just in. real estate [ __ ] you don't need stocks. like there's no one way to do it Sean. yeah it's just finding uh so I teach. people what I know how to do and so why. do I love stocks it's not necessarily. stocks take away stock market take away.

stocks I love businesses that I can. understand and I love even more private. businesses because you don't have to. deal with some of the reporting and all. that nonsense that I can get in there. and actually add value to and if you can. solve a problem in this world and. there's a lot of problems better than. anyone else on scale you're going to. make a lot of money and that's really. what a business's ultimate goal is. whether it's your business or a. manufacturing business or an advice. business it's about solving a problem. better than anyone else and making a. bigger impact in people's lives than.

anyone else on scale that's what we're. all trying to do yeah I mean I've been. trying to scale my business but I can't. find somebody to conduct these damn. interviews yeah but uh but there's other. ways to do it we can we can kind of talk. about that right I would love to talk to. you about that yeah yeah so what did you. do to scale yours yeah and with scaling. it sounds like that's relinquishing a. lot of control which is very hard to do. it's the toughest thing to do especially. when it's an advice business right. because what people especially early on.

when people were in buying is like I. could have been at Merrill Lynch more. like people don't give a [ __ ] about that. people were buying Rob Luna they're. buying me and at the end of the day. people buy two things who they like and. who they trust right I never took that. for granted you know one of the things. that I'm I'm forget about money that I'm. most proud of in the industry tree is um. you know in our industry it's very. regulated everything's disclosed so even. if you said hey I didn't like the stocks. Rob put on me and I lost five bucks if. you say that publicly it goes on my.

public record you can see that on the. SEC website every complaint you look at. the big firms they're literally getting. complaints every week so it doesn't. necessarily make an advisor bad as if. he's had a complaint because can people. complain about any anything these days. but in 25 years of being registered I. never had one complaint that's through. uh 2000 2008 2009 where [ __ ] went down. because it's about under promising and. over delivering being completely. transparent doing what you say you're. gonna do and just again back to being an.

entrepreneur and being successful all. those things sound simple but the most. people don't really do that just to hear. you say that is refreshing. yeah but your promise over deliver it's. nobody has that concept nobody and. especially like I I don't know like my. wife and I've been talking like since of. it it just seems like I don't know if. like people's brains got messed up but. it just seems like the last two years. every business idealist just got. progressively worse and the bar is set. so low which is good news for. entrepreneurs because there's more.

problems than ever that have to be. solved out there right now and there's. not a lot of people it seems apparently. that are able to execute on them they've. all victimized them yeah they're all. exactly they're waiting for the check to. show up but uh another question just I'm. curious yeah we'll see social media we. see the Lambos the Ferraris the private. jets the yeah yeah I have all of this. look at how magnificent I am yeah you. get to see behind the curtain yeah yeah. you get to see behind the curtain how. many people.

like when you wrote down all the people. that you knew that had money if there. was any yeah how many did you call or. have you called along the way where you. thought oh man this person's crushing it. oh man turns out it's all debt yeah you. know what Sean like you said. um in my business. I get to see everything because if. you're gonna work with me you got to. show me everything you got to show me. your tax returns you gotta show me your. assets your whole balance sheet and your. whole life or right I can't really help. you and so especially when I was younger.

what did I do I I chased after the. people that looked wealthy the people. that had the nice cars that had the nice. or whatever whatever it was. at the end of the day and like you can't. over generalize everything but I'll tell. you this a lot of my wealthiest clients. drove Ford pickup trucks uh they paid. cash for their homes they didn't have. fancy cars not not I mean I I drive nice. guy I like nice things but you can't. from the outside in determined because.

that person might be one Lambo lease. payment away from going bankrupt and. I've seen that I've seen that from time. to time so there's just no I've learned. long time ago you look at somebody you. look at some of my clients that are. literally worth three four hundred one. that's worth 800 million dollars and. you'll think he's just you know he can. work at Costco right you just don't know. so it doesn't and everyone's definition. of success with wealth is what matters. is completely different.

um what's it mean to you it means choice. it means having choice I mean that's. that's. what money provides is choice and I. think. the thing about wealthy Financial. Freedom for me is having choice because. I grew up with no choice. right like I I didn't you know I had to. create my own choice feed myself put. myself to get myself into a better. situation I just took what was ever. given was given to me in my whole life. right and so.

um and as I and I was even like the last. thing when I sold my business like I. even you know early on in my career I. had to work with people I didn't like I. couldn't stand I didn't agree with right. because I didn't have any choice I had. to pay my bills so we do [ __ ] and like. the good thing for young people like. look you're. like Pride's a good thing but sometimes. you gotta swallow your pride to pay your. bills especially if you have kids you. got to keep a roof over their head right. so I've done a lot of things in my life. that I didn't want to do but with. Financial Freedom like now I don't work.

with people I don't like. you know if I don't like you I'm not. going to work with you just because. you're going to make my [ __ ] life. miserable and it's just not worth it. right to no dollar amount that's true. true Sean I mean a lot of people like oh. [ __ ] there's no there's not yeah you. know because at the end of the day the. other thing I've realized and I said I. I'm nowhere near worth hundreds of. millions of dollars like I'm okay but. um what I've realized is. you know once you hit a certain amount. like say you got 15 20 million not that. that that's a lot of money right but 15. 20 million like you're not doing stuff.

different than someone with 400 million. or 800 it's just a lot more zeros right. and I don't care about a lot more zeros. I just care about I want to live where I. want I want to say what I want I want to. be around people what I want I want to. eat what I want I want to wear what I. want I want to shoot what I want I want. to do whatever I want to do and not have. to worry about backlash that I won't be. able to pay my bills or anything like. that yeah that's to me that's that's. what that's what wealth is I think. that's a damn good definition yeah and.

sometimes it changes I used to like. Ferraris like I'm selling a friend I'm. done with them I don't like it I'm more. into trucks now on land that's why I'm. out here you know I just really in line. and I'm coming back it's just it depends. on where you're at in life right yeah. but uh yeah and that's what I tell. people that I worked with and I don't. care what your definition of wealth is. you tell me what it is to you and let's. get there let's forget what everyone. else is telling you to do. what for for everyday investors what's. some what are some of the mistakes that.

you just keep seeing over and over and. over what are the most common mistakes. that everyday investors make they have. no plan. right that's that's the biggest thing. Sean is you know I was saying earlier. you're in you should be investing with. purpose. like every dollar that you invest should. have a very specific purpose it should. have a time frame associated with it it. should have a a rate of return that's. associated with it whether that's a. piece of raw land that you're looking to.

buy for a hundred thousand now and sell. it 15 years for 300 000 or it should. have an income stream associated with it. so when I'm buying a bond I'm buying it. for that coupon that it's paying me or. I'm buying a apartment because it's. paying me rental income every month. people don't have a plan they don't have. you know when you hear an Investment. Portfolio like a lot of people say I. have an investment portfolio Okay what. does that mean would an Investment. Portfolio should mean is a group of. assets that are strategically working. together to achieve one common goal and.

that common goal for most individuals. should be to support their lifestyle. right and so what I try to get people to. do is first first focus on where are you. at today right everything do you have. debt do you have some money in stocks do. you have somebody in real estate think I. got to understand that figuring where. you're at and you should figure out. where that is and then let's paint your. ideal lifestyle what do you want that to. look like do you want a house some five. acres or you want a brand new truck. everybody let's paint what that looks.

like and let's quantify that right and. so when I can quantify the dollar amount. that it's going to take to get there and. support that in terms of cash flow and I. see where we're at right now that leaves. a deficit so it's just called reverse. engineering and then I know based off of. how much I could save how much I could. reister realistically earn how long it's. going to take to get there and so. everything that I start investing in has. the Strategic purpose to get me from A. to B okay because I'm Investing For. Financial Freedom I'm Investing For What.

I because I I worked with a lot of. athletes who had the money they needed. by the time they were 30. so I hate the. word retirement I I call it work. optional I'm investing to where I'm. working because I want to work not. because I have to work and I think that. back to the definition of freedom I. think that's what everybody wants they. want to work because they're doing stuff. they like they like being involved and I. can tell you Sean like most successful. people they cannot retire they can't. retire and just sit around and do. nothing there I'll always be working and. doing something no matter how much money. I have. um so I think most for going back to.

your question I'm sorry got off topic a. little bit is you've got to create that. plan and if you don't know how to do. that that's what you got to find an. advisor to do and you don't need to give. somebody find a good certified financial. planner out there tell them that's what. I want to do help me quantify that what. that looks like and that's the real map. you need to get on and you need to start. investing towards that that'll kind of. tell you how much in real estate how. much in stocks how much of those things. that you need to do so the biggest. mistake is people don't have an.

Investment Portfolio they just bought a. bunch of different [ __ ] and they're. hoping it goes up yeah like there's no. strategy behind it so that's that's the. mistake is they're investing in things. that aren't consistent with what their. goals are. that makes sense. going back to land I'm kind of bouncing. around here because I just have. something I want to pick your brain but. at the beginning I asked that question. about tangible versus non-tangible. Assets in. I did get into the crypto game yeah way. late yeah and a lot a lot of people do.

yeah and it didn't work out for me yeah. and I don't know anything about the. stock market when I see the things like. AMC and yeah whatever the other ones. were you know the back when they were. whatever the short yep that makes me. very skeptical sure I can't touch it I. feel like the market is super. manipulated by by the world Banks and. stuff like that. so I like. precious metals I like land I like.

houses property not that I have a ton of. it but that's just and when I think. about land. we talked about how it's not a tangent. it's not a liquid asset yeah but what I. do like about land is you can put a. house on it you could run it you could. Farm it you could run it out as a. hunting complex you could there's a lot. of different things you could try to. flip it you can hold it with a stock I. feel like I don't have any options ex.

all my my options either to sell or to. hold and that's it yeah yeah. yeah so you know I think it goes back to. understanding again. um where you're at and what you're. trying to accomplish right because so. you know stocks you know there's two. ways to make money in stocks number one. is through capital gains Buy Low sell. high right the second way is through. dividend income streams right and so. um. let's use Procter Gamble for example if.

I show you in everyone's used Procter. Gamble toothpaste toilet paper all these. things right they've been around for 100. years. Procter Gamble if I showed you the last. 70 years of a stock chart right and one. thing that will agree on just because. it's it's one simple fact is over the. long run the stock market always goes up. every single correction has been a. buying opportunity up until this last. one we just we're hitting new highs two. years ago so every single correction so. that we can't argue that that stocks. over the long run go up now you have.

three five year periods where they go. sideways and down but they always go up. over time because the things that we buy. from Procter Gamble are at the same. price they raise prices over time so. they're able to keep up with inflation. because we need toilet paper we need. toothpaste and all those things but if I. showed you a stock chart of it over 70. years yes it's from the left to upper. right it's gone up over time but then. there's been periods where it's down 25. 30 40 that's what scares everybody right. but if I showed you a chart of their.

dividend meaning quarterly they pay you. income for owning the stock. and right now it's probably about three. point something percent which doesn't. sound great anymore but that was really. good when Bank was paying you like one. if I show you that chart it goes from. the left to the right just like the. stock but without any downturn and what. that means is over the last 70 years not. only have they paid you that income they. increased it every year they gave you a. raise error so it's three percent today. but they've raised it every single year.

over 70 years and there's dozens and. dozens of companies you can Google the. dividend Aristocrats you could actually. buy an ETF that invests just in. companies that for a minimum of 20 years. have not only maintained but increased. their dividends that's an easy way that. people could do that right and that's. income that because if you buy a bond. the problem with bonds is they don't. give you a raise it's three percent for. for 10 straight years where these. dividend income producing high quality. companies have paid you that income. stream and I have clients that have.

enough in just dividends that they're. able to pay their bills off of and. they're Diversified so again it's not. there's not one size fits all I. personally believe people should have. real estate people should have stocks. people should have bonds you know five. percent in some of these speculative. assets like uh cryptocurrency other. things that you want to do and one. reason I say five percent is because if. it goes to zero you don't miss a beat. your portfolio can make that back up in. you know six months 12 months where.

people get hurt in any asset class real. estate crypto gold precious metals. stocks is when they go all in they're. levered and they don't have time for it. to recover you know I saw this in. Arizona in 2007 2008 you know that there. when the market crashed uh stock I'm. sorry real estate market crash stocks. also obviously. um you know I knew clients at the time. that had 20 30 million equity in real. estate deals we encourage them to sell.

didn't sell and they thought they were. okay because they said hey we've we've. got you know 70 loan to value meaning. they had 30 Equity so if they bought a. million dollar property they put 300 000. down they borrowed seven hundred. thousand they said we got you know 70. loan to value we couldn't handle it well. what they didn't count on is that uh. real estate prices going down forty. percent forty five percent and then they. were underwater and then they had. revolving notes for the bank said yeah. you can keep the real estate but we need. you to bring in another 10 million.

dollars to increase your Equity back up. and when they couldn't do that they were. forced to sell a liquidation value and. they lost 20 30 million dollars in. equity does that make real estate a bad. investment or does that mean they were. just over levered. that they didn't have the timing right. that they didn't have it allocated the. right way it's the same thing with. stocks when people buy on margin or they. buy stocks that they need to pay their. bills within six months and they go down. 20 percent and now they need to sell at. a loss and Now Stocks suck yeah so you. know it's it all these things are good. but it's how do they work and consistent. with your plan most importantly and are.

you proportionately dividing your assets. in the right way are you giving them. enough time or because any of these. things crypto gold land stocks you can. you can gamble with them also. and you can get really lucky and do. really well. or you can lose everything and that's. just a game I don't I don't play I have. no idea I tell people if you're coming. to me thinking that I know what's going. to happen in the next 90 days no idea. but I can tell you I've been doing this. for 25 years and if you give me three. years you'll make money.

but I don't know what's gonna happen if. you're telling if you want me to tell. you because if I could tell you what's. gonna happen in the next six days I. wouldn't I've been on some Highlands. somewhere just cashing in I wouldn't be. you know charging you to tell you what. to do with your money good point. well let's take let's take another break. and then when we come back we'll dive. into. the economy the economy all right all. right. foreign. that developed this solution to the.

carbon footprint you can see it. dispersers just like I guess cream into. coffee. [Music]. so you take this solution. [Music]. spraying on a plant and it does. photosynthesis a couple more hours a day. I should win of how many climate. disasters we're going to see. increasingly hear tragic fires and the.

increasing those fires the flooding in. the midwest these horrific storms this. is something that is coming at us. [Music]. Cory Booker he had proposed you know we. should plant 500 million trees that. would be the answer we should work with. Booker and yeah plant trees but what. they should do is you gotta dip them in. Soul bear plants.

grow optimally at 72 degrees Fahrenheit. that's where this technology came in we. started seeing different things over 20. years ago on these different treatments. for sunburn. we have the assets available to us we. have the infrastructure trees. foreign. [Music].

capturing carbon trying to get a little. better balance with nature. who's not for that. all right Rob the economy. what the hell. is going on.

I thought goal I thought precious metals. were supposed to track inflation they're. just going down it seems like stock. market's going down real estate seem. like at least here in Tennessee it. seemed like it was a light switch before. it was. houses were selling. 24 hours on the market for over asking. cash buyers now it's like just it's it. literally was like a light switch it's. like crickets no more cash buyers. nobody's buying anything over asking.

anymore. what the hell is going on. yeah I mean it's it's uh it's a. different Market especially for you know. I say Market just everything stocks. bonds real estate. um especially for younger investors who. haven't seen a bear Market in anything. right this is their first stock bear. market now there's some challenges in. real estate. um cryptocurrency which a lot of younger. investors are in was just an absolute. free fall and uh it's been tough and um.

you know the economic lesson of the day. is interest rates matter uh and interest. rates are probably the single if you're. going to point to one factor what. controls our economy more than anything. else its interest rates. and so when I talk about that. um just one thing that anyone could look. at economics kind of 101 is if you look. at the 10-year Government Bond. 10-year treasury right now is paying. well it's come down uh over the last. couple days uh but let's say it's called. it's paying about four percent.

if you look about a year and a half two. years ago that was under one percent 80. basis points so we've had a huge run up. and why is that so important for. everything well the 10-year bond. whether you're a pension fund you're a. big investor when we're investing for. people that's taught in economics and. it's used in the real world one of the. one of the few things that everyone uses. is called the risk-free rate. and so what that means is Mo when you're. when you have a long-term investment 10.

years let's call it whether it's real. estate stocks you know Pension funds. endowments that move a lot of money. always have at least a 10-year time. Horizon what you need to do in every. investment you make so if it's stocks. bonds cryptocurrency you need to compare. that to the risk-free rate well why if. I'm going to invest for 10 years I know. the U.S government who's never defaulted. is going to pay me four percent on that. money without any risk at all. so your brother wants to borrow money.

for you at 10 years at three percent. you're probably not going to do that. right because he's obviously a higher. credit risk than the US government and. he's paying lower so that's just a. simplistic version of you should compare. everything that you're gonna do over the. 10 years against the the risk-free rate. you're not going to take on uh any uh. greater risk without at least a four. percent rate of return so any. incrementally how much more risk you. take above that you should be. compensated for that risk so again one.

of the biggest you asked me a question. earlier about what mistakes do investors. do is they take on uncompensated risk a. lot of times they're taking on a. tremendous amount of risk without a. potential reward for it and so what. you've seen happen we have been in a. bull market for bonds now. since my career started so in the late. 90s interest rates have been going down. right so we're back about where close to. where we were then in the late 90s where.

mortgages were about seven seven and a. half percent but if you think back it. started well before then you know a lot. of people's parents could tell them in. the 70s 80s you had super high inflation. people were paying 18 19 for their. mortgage right so interest rates have. been coming down for a few decades now. and so what happens with that is a. couple things number one when you talk. about bonds as an asset class as an. investor there's an inverse correlation. when you when rates go down bond prices. go up simple reason why because if you.

buy a bond that is every Bond's 100. bucks if you buy one that pays you seven. percent today. if yields go down to three well instead. of getting seven bucks on that Hunter. you get three what does that mean the. guy who bought it at seven his bond is. worth more so you have to pay a premium. to get that so as rates go down bond. prices go up. so bonds have done well every single. year and why people always tell you when. you buy put together a portfolio put. stocks with bonds because when you buy.

stocks they're aggressive but bonds are. always conservative they're going to. hold up well that's worked for 30 years. but I've been on TV telling everybody is. it's not going to work anymore because. I've been saying for the last three. years I said the next stock market. decline more than likely is going to be. because of interest rates and what. happens is when interest rates go up. bonds go down and what you saw this year. in 2022 is that Bonds on aggregate are. down about 18 19 percent people that. were in the 2023 Target retirement date.

fund at Vanguard meaning they're getting. ready to retire next year and Vanguard. moves you to the more conservative stuff. that fund was down about a week ago 21. percent. so how about that you're getting ready. to retire you got a million bucks. finally now it's 790 000 on your. generator tire that doesn't feel too. good right and so that's the problem. with one size fits all sticking to one. thing and thinking that's going to work. forever so back to that interest rates. going up now that's a problem for people.

that were holding bonds who who's who's. setting the Federal Reserve sets the. interest rates right yeah so they should. short-term interest rates so who sets so. US Government doesn't own the Federal. Reserve no so so they're they're. separate they're supposed to be. independent now so a lot of people will. say are they. persuaded sometimes by politics do they. want to you know be raising rates right. before a election period to where. because raising rates are going to slow. down the economy but essentially they're.

supposed to be separate so let's just go. under the uh idea that they're they're. separate so they set short-term. overnight lending rates but what happens. is that reverberates across everything. when short-term rates go up long-term. rates are impacted by that ultimately. it's the free market supply and demand. that dictate what's going to be. happening with longer term rates so the. more Supply that you have the less. demand that you have that's going to. impact in the correlation bonds trades. modern Market's actually larger than the. stock market they trade on a minute by.

minute basis just like stocks and they. can be very volatile in periods of time. like this but ultimately we're for. Simplicity the Federal Reserve is going. to really dictate what happens with. rates and now the Federal Reserve just. to give you a little background on them. I think everyone should know this they. have a dual mandate and that mandate. says that they have to be responsible. for for Price stability meaning. inflation right they need to make sure. that our dollar doesn't become you know. worth nothing like Argentina or. something like that uh and they're also. responsible for uh employment so making.

sure that employment rates don't. Skyrocket right and so that's kind of a. tough dual mandate right now. that's kind of what they're dealing with. is this Balancing Act and so kind of. bring this back to the economy and why. interest rates matter. is they why are they raising interest. rates well they're raising interest rate. because employment's great right now so. no matter what everyone said we're at. three point something percent. unemployment if you want a job today you.

can get a job there's no reason why you. can't work today one of the biggest. challenges I see with small business. owners I work with we were talking. before you can't find good people people. don't want to work especially when it's. minimum wage or lower wage types of jobs. no one wants to do those things anymore. because they can just grab an Uber oh by. the way that wasn't available five or. six years ago so there's a lot more. options for people to be employed today. and so when you look at unemployment. they're not worried there so they don't. have to worry about slowing things down. there their major Focus today is.

inflation and we saw inflation eight. point something percent we've been at. since you know I've been in the. financial markets 20 something years two. three percent one percent we don't know. our age unless you're in your 50. something plus you don't really know. what inflation looks like we haven't. really dealt with high inflationary. periods so everything we're doing is. based off of what we heard we heard that. gold works out during an inflationary. period and maybe it did but when the. economy was different maybe bonds did.

work good when interest rates were. different but everything is a little bit. different this time so they're really. focused on Breaking the back of. inflation because you you don't want. spending power to be really that's a. huge huge problem right and so well. let's talk about you know what is. inflation well it's a definition is. um too much money chasing too few goods. and services right so everybody's got. money but there's not enough [ __ ] to buy. and that's everything we saw that with. houses we saw that with cars you saw.

watches everything was going up why. and why did this whole situation happen. well let's talk about it. um during covid the global supply chain. got shut down. everywhere right no that was on no one's. right I don't care who you are right. talk about a Black Swan event nobody. expected that to happen the global. supply chain was shut down. um oh and we couldn't leave our house so. the whole economy was shut down right so. nothing was happening and then the.

government uh decided Well hey let's. give people money uh let's do that. through uh paycheck supplemental loans. the biggest scam out there was PPP loans. uh that people were getting like the. vast majority of businesses or small. businesses or a lot of small businesses. qualified for PPP loans a lot of people. clients that I had that were. multi-millionaires that got money thrown. at them that they didn't have to pay. back that were investing that money not. really doing what they needed to do and. good luck with the government auditing.

these things and all that that'll. that'll never happen so there was tons. of money that got put in people's. pockets right. and so let's think about that the supply. chain shutdown uh people can't go out of. their house most people are still making. money a lot of people started working. remotely right so people were making. money then they're being supplemented. okay so savings rates we saw during. covid went Sky High. and then nobody can do anything with. their money and so and interest rates.

were essentially zero at that time. okay so when interest rates let's talk. about interest rates at zero in the. investment side of that first. well interest rates at zero. we talked about the risk-free rate when. I invest in something in the 10-year. bonds at four or five six or seven. percent there's a hurdle there that I. have to get but when it's zero it's like. my money isn't going to earn anything. anyway if I put it in savings if I could. earn anything if I put it in bonds I. might as well buy cryptocurrency I might.

as well buy tech stocks I might as well. buy real estate other things because I'm. not getting any return here. but when the government starts raising. that rate that becomes competition for. those assets and not to get into a total. economics lesson but there's something. called a discount cash flow model to. where when you're a Growth Company like. Amazon for the first several years and. they still they don't pay any dividends. so you're not getting money back as an. investor you're betting on future growth. and the return that you need as interest. rates go up becomes much higher and the.

multiple that you're willing to pay. becomes much lower and so what you. really saw was people said okay on. growth Assets Now that these rates are. high we're going to contract that mobile. multiple we're not willing to pay 25. times earnings because we can get money. now we're willing to only pay 12 times. earnings so even if companies were. making the same the multiple at which. they were bought at shrunk and that. always happens in this environment a lot. of this is not new people just never saw. it so that's why tech stocks in general. in the stock market got hit hard those.

dividend stocks that I told you about. year to date they're only down about. seven eight percent. so they held up pretty well why because. you have the safety of that Caster. that's coming in so all stocks in this. market were not created equal Ultra. Ultra growth tech stocks are down 70 80. percent this year high quality dividend. stocks seven eight percent this year so. there's a differentiation there and. that's what happened with the stock. market. um real estate is a little bit different. well because a couple things we said. people got picked money put into their. pocket they're saving skyrocketed.

because they had nowhere to save money. so their personal balance sheet looked a. lot better. um and then real estate especially in. places like Nashville or Montana Idaho. places where there's fresh air you can. get out you have open space you're not. in the city unlike places like Los. Angeles and New York those became very. desirable because people didn't know. like I think if this would have been. three six months like I I thought oh. this this code will be over three and. then it's like two years later you're. like holy [ __ ] three six months it would.

have been a blip. but Behavior changed after a year and a. half two years where people think okay. this might be a new lifestyle and even. though a lot of people are going back. into the office now I personally don't. think it'll ever be the same there'll be. some flexible type of work environment. going forward and really a lot of. companies saw you could actually be more. profitable if you're not sending people. traveling around the world unnecessarily. during covid you saw corporate margins. actually Spike for a lot of companies. during that time. um but what you saw is people had money. now interest rates meaning.

the price to uh pay your mortgage was. very low because you could get a house. for like two point something percent. right so now you had a lot of money. homes could go up in price because the. payment is very low even though the. price is high and so you saw these areas. really you know go up so that's why real. estate was going up during that time. stocks were going up because companies. were actually making like especially. stocks like Amazon uh Clorox anything. that was really you know benefiting from.

uh covet during that time uh crypto was. going up because people had a lot of. money and they didn't have the 10-year. wasn't paying anything and it's like. okay greater fool Theory with crypto. right and I think crypto will be around. just like tech stocks in the 90s they. got decimated 90 of them went away but. the ones that stuck around like Google. and Amazon did really well and that'll. probably happen with Bitcoin and things. but it takes a long time for that that. to happen those things got decimated but. the problem with what created this and.

inflation was savings rates went High we. put money into the pockets of people and. the supply chain got shut down so even. now like the markets rallied a little. bit here in the last day or two because. there's talk that coveted I'm sorry. China might be getting rid of their zero. coveted policy and zero coven means. basically you can't do [ __ ] you can't go. out of your house they've been very very. strict way more strict than we were even. in Los Angeles with covid and a large. percentage no shock of our supply chain.

comes from China and so that's been shut. down try you know my wife uh does some. things in fashion and she's trying to. Source these hats you can't find hats. you can't get anything and if they do. they're charging you two to three times. why more because there's no Supply and. people still need these things and so. that's really what's created inflation. is people had more money the supply. chain has got shut down. and so you know a few things with that. a lot of people were thinking that this.

would happen in 0809 do you remember how. much money we pumped into the to the the. government plumped into our economy. during that period of time a lot of. people were telling me the dollar is. going to be devalued inflation is going. through the roof during that period of. time and that never materialized why. well that money actually went into the. banks and the banks essentially used. that money to write off bad loans. remember most banks were insolvent. during that period of time we put had to. marry Banks together we had to pad their. balance sheets and the financial system. itself was was basically bankrupt with.

the exception of a couple of different. um uh names out there and so the. government not only did they. but not only did Banks use that money to. get back to even from the from the right. right offs that they had from the. housing market. but also what happened is the government. at that time said we don't want this to. happen again let's raise reserve acquiry. requirements so for every dollar that's. on deposited instead of 20 cents we want. you to have 40 cents so now not only did. they have to get back to even but they.

had to have a greater buffer to make. sure that there was a crisis again that. they were going to be able to withstand. it so that money never got out into the. real economy it stayed with the banks. and for inflation what you need is you. need both Supply and velocity meaning. yeah the government has to put it into. the banks but then the banks need to. lend it out to people and they didn't do. that they increased lending standards. they increased their own balance sheets. during that period of time this time was. different because Banks were super. strong but the government bypassed the. banks this time with PPP and everything.

like that and they put the money. directly into the hands of the consumer. so the velocity was much higher so in. short we have inflation because you. couldn't buy anything people save money. because they couldn't spend the money. and the government gave people extra. money during that period of time and. we're still two and a half years later. not back into a normal functioning. supply chain so anything that you want. to buy is still at a deficit you're. still have a shortage on just about. everything and that was even with. housing because you weren't building. houses during that period of time and.

then also you have a millennial. generation you know the late 20s early. 30s now in the U.S that's the largest. generation in U.S history so you have a. huge amount of demand now from people. that are now getting of home buying age. and there wasn't a lot of homes being. built and you had low interest rates and. you had extra money so we really created. this perfect storm for assets to go up. and that's the that's the perfect storm. that created an inflation. so now what you have to ask yourself. though is this all sustainable is.

inflation going to stay this way is this. going to continue to be this way can. home prices continue to stay where. they're at I would say no and the reason. I say that is well a couple things and. why. I tell people whether or not you invest. about the stock market you need to care. about it because it's a leading. indicator it's like the canary in the. coal mine it's going to tell you. something's wrong before anything else. does why because it's liquid it's one of. the most liquid assets if I want to sell. this building it takes me a while if I. want to sell my stock portfolio hold on. I'll be right back with you and I'm done.

right it's liquid it's cash so it's very. quick and you'll also see corporate CEOs. you'll start to see people talk about a. slow you'll start to see things happen. Way Beyond well before you can go back. 100 years and look at this well the. stock market started going down in uh. about October of 2021 right it started. going down and now the stock market's. gone down the NASDAQ down like 40. something percent s p was went down. close to you know 24 25.

but real estate just started showing. cracks about 90 days ago yeah right and. so why does that happen well. what happens is stocks whenever I said. forget stock market they're companies. so companies when things slow down what. do they do they lay people off when. people get laid off they don't feel. quite as confident about buying a home. or a second home especially right so. stocks started going down and then. because stocks are going down corporate. CEOs have to do something to to pad.

their balance to get their balance sheet. better to get more earnings they lay. people off people get laid off that's. when it hits the real economy that's. when you know stock markets paper until. it's not right because the stock. market's telling you things are. happening again stock market is. companies and when those people they. were hearing it the last you know. Facebook now like all these companies. General lawyers laying off laying off. laying off laying off and so that means. people aren't as con not only are people. that are losing their jobs. uh in a situation where they can't.

afford homes. if you hear your buddy just lost his job. you're seeing it in the news don't. underestimate the behavioral component. of the economy people tighten in their. belt and sometimes just saying there's. going to be a recession causes a. recession because people start thinking. differently they say there's going to be. a recession maybe I shouldn't buy that. car maybe I shouldn't take that vacation. maybe we should stop eating out honey. four nights a week right so it becomes a. self-fulfilling prophecy and so we're at.

a situation in the economy now where the. stock market I think the worst of it's. been done the stock market's gone down. it's gotten crushed already right. so would it be a good time to invest. yeah yeah if you've got again three to. five years if you've got a three to five. year time Horizon it's a great time to. buy stocks in particular though you want. to buy the stocks that were hit the. hardest the growth names right you want. to buy the smaller companies right so. you can buy an index the Russell 2000. there's a lot of different ETFs out. there that you can buy that these are. the smaller companies that are faster.

Growers but they get hit the hardest in. a Slowdown but they're also the first to. recover when things turn back around and. so I say look at the things that are you. know don't buy garbage don't sift. through the rubble buy indexes whatever. things could hit this hard people make. the mistake of trying to pick one or two. stocks don't do that here because. everything's so cheap just by the index. itself particularly those ones that got. hit hard you can buy a technology index. if you've got three to five years I. recommend buying the smaller stocks. because those have really underperformed.

what is an index is that like a mutual. fund yeah so it's it so the Russell 2000. for example it's 2 000 of smaller. companies three to five billion versus a. trillion dollar companies like Amazon. that trade on the stock exchange okay so. you can buy it's called an ETF which is. called exchange is it exchange traded. fund you can go to ishares for example. or Vanguard they both have them if you. just put small cap ETF in there it'll. show you what it is very cheap and what. you're doing is you're just buying that.

basket of 2 000 stocks so you're getting. ownership and all of those names you. don't have to worry about picking the. three because there's times people try. to pick three stocks the index rallies. and they pick the three dogs and they. don't wind up participating in that so. by by the index because those are the. things that got beat up. always own high quality dividend-paying. stocks always I always own them I always. own small cap stocks but in terms of. being opportunistic that's what you want. to do now don't make the mistake like I. learned from an 0809 because I was so.

scared because I saw Lehman Brothers. break and I saw like people around the. corner where the banks were going to be. there you know I was a financial. professional but I was scared you know I. didn't think Lehman Brothers going to go. under and then bear Stearns and then. you're just like holy [ __ ] like clearly. there's not somebody smarter in the. government that's going to protect us. right now that's that's that's. at that point you know I was pretty. young still I was like they're smarter. guys and they're like they got this they. go like yeah they don't have this and. once I saw it I was like wow they really.

don't have this and a lot of people. changed their whole risk philosophy at. that period of time but when I started. getting back in I bought the really safe. names everything got hurt but what I. should have bought was the names that. got beaten up the most like the. economically sensitive names like Google. or uh Disney even got beaten up 70 but I. was afraid to buy those I went back and. I bought the the recession names the. Procter and gambles and the Kimberly. Clarks because I just wanted to buy. almost you know like buy people invest.

in real estate because they could touch. it I felt like hey people are always. going to brush their teeth and wipe. their ass hopefully I'll buy I'll buy a. Procter and Gamble but no stocks went up. but not nearly as much as the stocks. that got hit hardest so again most of my. value yeah education is great but. there's no substitute for experience. similar situation now if you're going. back in with dry powder don't buy the. dividend stocks that are only down seven. eight percent buy some of those baskets. that are down 30 40 percent because. three to five years that's where you'll. get your best return today in the stock.

market oh good but if you want to talk. about real estate market for a second. because a lot of people want to invest. in real estate I think we're at the. beginning of the downfall you're seeing. the markdown now but I think and I don't. think for a lot of reasons that this. will be an 0809 we won't see 50 60. percent we will see on average about 10. percent uh but I think areas like uh. Texas Florida Nashville unfortunately. we'll probably see 15 to 20 percent. because they again going back to How Did.

they perform going into this they did a. lot better than Los Angeles and New York. and you know price is absolutely. skyrocketed so to see we talked about. your house if you see 15 down nobody. likes it but you're still well ahead of. where you were a couple of few years ago. and so why well why is that going to. happen why do home prices have to come. down well a couple reasons. um one is I think people are people did. by second homes in places like Florida. and Texas well if the economy is uh.

going to get into a position where it's. a little bit tighter people sell their. second homes first so you'll start to. see those homes get sold off also people. bought in areas that they never really. knew anything about Montana and Idaho. beautiful areas they're like hey it's. coveted I just want to be fair share. where I have to wear a mask so they. bought out there but now they're like I. don't know if I could support myself. here now that the PPP money's gone so. they have to they have to move back to. the tooth so that's a good thing about. Nashville is they've got real industry.

and Health Care here and they provide. jobs but some of these places unless. you're already wealthy you can't stay. there so it's going to hit those areas. but the primary driver remember I said. the most important thing to any asset is. bonds. interest rates are so high right now. your mortgage is seven seven and a. quarter percent so what does that mean. in general the same million dollar house. where let's say your payment was roughly. six thousand dollars for right at a. million dollars well now at seven. percent that payment's nine thousand.

so here's the challenge where we got to. a year ago in housing affordability was. stretched you know so usually how do you. look at that Rob well I look at average. household income so if you look at. average household income and let's just. say it's a hundred thousand dollars. average household income you're usually. at about three and a half times that for. medium home price so 350 000. that's. always been a good indicator just look. at what is average household income. Across the Nation and then what is. median home price you can Google that at.

any time those two data points and. whenever you see that data point more. than three three three times that means. it's a little bit frothy right and it. makes sense because if the average. household income can't support the. average mortgage payment it's not. sustainable oh good and so then that's. kind of what happened at the end of the. day yeah the rich will always be rich. but a guy of Pimco told me a long time. ago Paul McCauley said you can't starve. the Plankton because if you start the. plankton in the ocean the big whales die.

right they're eating those little tiny. planktons so if you don't let the little. tiny Plankton survive the big whales. can't survive and so the vast majority. of homes are not built by bought by. billionaires they're built by the. average working person and so when you. take those prices to unaffordable levels. they're not sustainable so we were there. when we were at two and a half percent. mortgage rates not extreme but we were. to a point where I didn't really see any. future growth going on but then we had. this coveted pop a lot of money interest. rates Came Crashing Down But now that.

interest rates have normalized to buy. that same house you need a 50 higher. payment it's not sustainable so what. happens in the market like this one or. two things have to happen interest rates. need to crash back down to where we were. so we're back down to that same payment. or you have to see housing prices adjust. to where we get that to a point to where. maybe it was six thousand before it's. now nine thousand it doesn't have to go. back to six but if rates are going to. say six six and a quarter maybe that. million dollar house it doesn't need to.

go to 600 or 700 but maybe it needs to. go to 8 825 because that's back to where. that payment's maybe 63 or 6 400 bucks. oh good because Americans don't pay cash. for houses right they buy the payment. they buy the payment so now you need to. get that payment back to where it's. affordable and I don't think interest. rates are gonna come back down quick. enough the fed's saying they probably. won't cut rates till Sometime Late next. year. so that's why I believe personally the. real estate Market's going to come down. but because Supply is still short we.

still don't have a huge amount of Supply. unlike we had in 0809 and because demand. is higher now that's going to buffer. that a little bit and that's why I don't. think it's going to be a crash but if. you're looking to buy I think next year. is probably going to be the time to buy. real estate but real estate now again. lagging indicator that will bottom last. right stocks bottom first real estate. stocks go down first bottom first real. estate uh goes down last bottoms last. okay yeah.

back to inflation yeah. is. I know it's because you said a lot of. Money's been pumped into the economy. what about printing money a lot a lot of. people are worried that the dollar is. going to collapse yeah everybody that. talks about it yeah I don't trust. anything that comes out of their mouths. when it comes to finances yeah but it. gets my attention. talk about it it gets a lot of clicks. um I used to be super scared about it. when I first got into the engine this is. this has been going on I've been in the.

industry since 1998 and it's been the. same story in terms of the dollar. printing money and all these things and. and inflate couldn't even get to three. they could they're trying to create. inflation and couldn't do it printing. record amounts of money and so there's a. few things. um number one in terms of inflation just. the short outlook on this I think things. come down we've already hit Peak. inflation in my view if you look at oil. prices they're coming down shipping. prices are coming down and we just had a. print. um recently where it uh CPI Consumer. Price Index came down greater than what.

people were thinking I think we peaked. and I said this about three or four. months ago doesn't mean we're gonna go. back to two or three but I don't think. we're going to go any higher than eight. and a half nine percent why because. everything that I said. Supply demand supply chain money being. put in the consumers economy Pockets. people having more liquid cash that. needs to be sustainable for a longer. period of time to keep inflation High. I don't see that happening the supply. chain is opening back up so they're. going to start to make more of.

everything we started at least hopefully. uh stopped putting more people money uh. from the government into people's. pockets. and in absent of that I don't see any. new industry that's creating super high. paying jobs where people are going to be. able to sustain that level of spending. on their own as a matter of fact. technology is probably the biggest. disrupter of that the problem with. technology it actually reduces jobs I. mean think about your business that you. run today right yeah you're able to have. employees remote you're able to use.

technology for things that you used to. would have had people so technology. actually makes businesses more. profitable and efficient but it actually. takes less people to be able to do that. so and I think that's we're going to. continue to grow in that direction so I. think longer term we get back to a more. normalized inflation number so in terms. of inflation that's why I don't think. it's going to stay there forever I think. in two three years we'll be back to kind. of where we were that three percent type. of number that's my view now to your. question though in terms of okay what. about printing money and what we're.

doing there. well it's all relative right and that's. the thing because we are a global. economy right now. um at the end of the day the dollar is. still the world's Reserve currency and I. think what happened was with Bitcoin uh. and there was because of this whole. Narrative of printing money government's. gone wild which I don't I don't disagree. with I mean that's happening. um Bitcoin sounded kind of cool right. it's like this unscrewable Ledger. there's accountability there's.

transparency with what's going on. there's a finite amount it was almost. like the gold standards right it's like. okay for every dollar that you print you. have to have some certain amount of. ounce of gold backed up to be able to do. that you can't print more dollars than. you have in Gold well the government a. long time ago got away from the gold. standard why so just like every other uh. Central Bank they can manipulate their. currency they could do whatever they. want when you have accountability to. your currency you can't do that right.

and so we started to print money and so. a lot of people thought well because. you're printing money that's going to. create a situation where we have super. inflation the problem is everybody. around the world Europe parts of Asia. they all started doing the same thing. and what we've seen during every crisis. that we've lived through is when the. [ __ ] hits the fan. thing that you want to be in more than. anything else is the US dollar I'm not. saying that can't change and I think. conceptually everything that everyone. talks about I completely agree with as a.

matter of fact one of my first Million. Dollar Plus clients came in to me about. 20 years ago. he owned copper stocks he owned gold the. gold gold. ETF he owns uh water companies and he. and I basically said I said look. let me tell you what your belief is. about the US economy we're printing too. much money the dollar is going to zero. he's like how do you know I said because. your portfolio reflects your opinion and. I said here's the problem you might be a.

hundred percent right and it's a super. articulate case like that's why people. yeah we are like I don't disagree with. any of it well any of it but what I said. is the problem is with opinions is what. is the actionable strategy on that your. actionable strategy today is invest in. gold and all these things right and that. might be the right strategy but that's. based off of one outcome and if that. outcome doesn't play out meaning runaway. inflation sinking dollar you're gonna go. broke. thankfully I was able to talk him into.

diversifying because 20 years later he'd. probably have the same amount of money. versus a significant multiple over that. because that hasn't played out the US. dollar hasn't crashed we haven't had. runaway inflation and so that's the. challenge that you have to be careful. even when it is a very well educated. opinion you know I I've never had the. opinions uh the the the benefit of. having an opinion without having to tie. money to it see whenever I make an. opinion or I make a statement I actually. have to make a move with real money I. manage almost a billion dollars that I. have to put beyond that of people's real.

earned money right so I could say the. Market's going to crash and we let's sit. in cash and earn zero what if it. skyrockets you know I remember when. um clients when Obama got elected oh we. gotta get out Obama's elected uh Trump. oh I get out it's Trump none of that. [ __ ] worked out so you would have just. sat in cash and on the sideline you. would have missed out on you know 100. rate of return and so you know the. problem Miss Sean like I agree with all. those things but as of right now it's. not playing out uh the US dollar is. still the reserve currency we even saw.

that with gold it didn't it didn't do. anything the dollar has skyrocketed. right um that's that hurts the economy. also right because we do rely on a. certain percentage of our economy for. exports and so for exporting anything. well that's going to become more. expensive so people aren't going to be. able to buy that quite as much right so. that's going to become a challenge. people aren't going to come in and go to. Disneyland if the price of dividend. Disneyland's 80 percent higher and so we. are printing too much money governments. have gone wild there's no accountability. I agree with all that but I'm gonna wait.

for the market to tell me that they. don't buy it anymore okay I don't know. when that's going to be are you are you. worried at all that of course something. else is going to become a World's. Reserve currency like Saudi Arabia's. in the end or like I mean I I I don't I. don't think so I I think quite honestly. the best bet for that to happen is. something like Bitcoin where all these. countries adopt a standard like I don't.

think it's going to be China I don't. think you think people are going to. trust Saudi Arabia or China or Europe. more than I I don't personally believe. it that's what I I like conceptually. Bitcoin and I don't think just because. it's crashed dude Amazon I've owned. Amazon forever Amazon from 1990 to 2000. went down 90 9-0. if you had a if you had a hundred. thousand dollars it was worth 10 at one. point but that hundred thousand became. worth millions and millions of dollars. if you held it for another 10 to 15. years just because we're having a. correction in cryptocurrency does not.

now there's dogeco there's all this crap. that was just you know that I don't know. if you remember a little younger than I. am but I remember in the in the 90s. there was Google but there was also ask. Jeeves there was lycos there's these. other search engines where you didn't. know like they're all the same to you. but you know they had just as much of a. chance and then obviously we saw what. happened those other ones went bankrupt. it's the same thing with crypto but when. you think about blockchain and what. that's going to do for our economy and. you think about crypto being able to uh.

create a decentralized financial system. because there's a lot of unbanked people. around the world and if we truly are a. global economy which we were we're. becoming and we're going to be even more. as time goes on like it or not you. really need things like blockchain and. cryptocurrency and so I believe um. I don't know if it's Bitcoin I don't. know what it's going to be and that's. why you're probably better off buying a. basket of whether it's ethereum and. Bitcoin and all those things but I don't. I wouldn't write it off yet I think I.

think it's I'd put my money more on. something like a cryptocurrency than I. would on another. um uh country's currency being the. replacement for the US dollar no good. well that's good that's good to know. because it doesn't feel good when you're. holding Bitcoin though and it's down to. 16 17 000. yeah well I'm holding some of. that yeah I haven't uh. what a disaster I haven't sold it yeah. but um yeah I mean if you haven't done. it now it's it's not the time to do it.

okay that's the other thing people make. that mistake or they they buy it high. they love it and I talked about the. emotional biases you know people love. buying things when other people are it. just feels better even though that's. probably the worst time to do it because. prices are usually at an all-time high. but then when they get down to these. levels everybody wants to head for the X. because they think oh maybe someone knew. something that I'd I and I used to be. that person too and then I realized like. I know all these other people and I know. they don't know anything more than me. that's the benefit I had right I got to. meet all the people on television behind.

the scenes and doing policy for the. government people that let they don't. know any more than me so no one knows. any more than you and so the whole thing. about Bitcoin nobody knows conceptually. though is the government what they're. doing and printing a problem absolutely. do we need something to solve for that. absolutely for me blockchain. cryptocurrency makes the most sense it. probably will happen nobody knows how. long what it's going to take and that's. when I I said Sean it comes down to at. the beginning you ask me what do you. invest in put some there but don't put. enough where it's a singular outcome to.

where Bitcoin has to go to 4 million for. you to be able to pay your bills put. three five percent in there and if it. takes off like hey if you put in Bitcoin. three percent of your net worth you know. at the beginning you'd still have a lot. of money even after it went down right. so you can put a small amount into those. things but if it doesn't work out you. still keep the lights on you still put. food on the table right so you just got. to make sure you don't and that's the. problem most people make is they go all. in on these ideas or like that client I. talked to you about he lets his opinion.

of what's going to happen dictate his. investment and I learned a long time ago. that even when it seems crazy markets. can remain irrational a lot longer than. you can remain solvent that's the truth. so you don't you don't it doesn't sound. like you think this recession is going. to turn into the Great Depression part. two I just don't see why or how I mean. people are still employed they still. have jobs I mean if someone showed me. data to say why that was going to happen. I I would say okay maybe but I just. don't see data I mean people are still.

getting jobs the unemployment number has. actually been going down and like I said. the economy is different you know. because 10 years ago. um there was an Uber there wasn't. doordash there wasn't this gig economy. where there's a lot of people in the. shadows that are doing little things or. supplementing their their income by. driving for Uber we've heard now even. more so where you've got people that. work from home but they're taking on. second jobs the newer thing that they're. coming on so I I think it's just a. little bit different.

um today I think there's just a lot more. opportunity for people to make money. than there was before and I don't see. the economy crashing that being said the. recessions are a normal part of taking. excess so I think yeah a recession I. don't think it'll be 0809 though you. don't think it'll be that bad no because. if you just look at all the numbers if. you look at the 0809 was primarily. because our financial institution was. bankrupt that's a problem. right the only thing we've seen I. haven't seen it um prior to 0809 that.

was anywhere close was the Great. Depression. you know so this was and that was the. thing why you know. in 09 the stock market bottomed. ironically 666 was the number within 90. days from there was up like 50 and so. why did it come back so quick if it was. really such a problem it wasn't a. valuation problem or an economic problem. it was a liquidity crisis. that's what caused assets to get flushed. it was a liquidity and a leverage. problem. so especially leverage way over. leveraged in real estate like I told you.

someone had 20 million dollars in equity. wiped out because he was over leveraged. long-term Capital Management if you. Google them in 1998 they were a hedge. fund that traded currencies Nobel Prize. laureates super smart people huge. institutions were invested them tons and. tons of money they were betting on. currencies the strategy went really bad. with Russia when they devalued their. currency they were levered in this and. they were basically forced to wipe out. the fund Banks had to step in it was a. huge it became a huge uh National.

um economic issue well the truth is if. they were able to keep that strategy on. a little bit longer without leverage. they would have made a ton of money the. problem is they were flushed out of it. same thing with my client who sold and. took a 20 million dollar loss if you. could have waited five more years he. would have made money on it but he was. flushed out of it stocks were sold all. those things were still in 0809 because. when you need to raise cash to put up. money for Real Estate or whatever it is. you don't so what you want to sell. necessarily you sell what you can sell. and stocks are the easiest thing so it.

was a huge liquidity problem and the. banks were financially bankrupt we saw. that happen the government had to come. in and save them and now though the. financial system is the strongest I've. seen and since I've been in the market. since 1998. their balance sheets are way. better their lending standards are way. tighter than they were before so I don't. see a financial system that's corrupt I. don't see super huge excess I see still. a supply demand issue there's still not. enough homes being built out there for. the amount of people that want to buy. them people are still working so I'm.

just asking like what's going to create. this huge depression yeah I just don't. I'm not I'm not I'm not against it you. know in my opinion I'll change my mind. as soon as I see more data I just don't. see the data that supports that that. being said. for your listeners the bearish case. meaning the negative case is always. always the most articulate. because the idea when you can quantify. in Psychology the emotion of fear is. three times greater than greed okay so. that's why they say stocks take the.

stairs up but the elevator down like you. know so they go up over time but when. they come down boy or cryptocurrency it. comes down fast and hard because when. people get scared they get really really. scared and so and I never do this if I. even in my in in the industry if I would. have always just played on people's fear. I probably would have been worth 3x of. what I was today and you see people do. that all the time the Market's gonna cry. it always doesn't matter if we're in a. Boulevard it's just a consistent story. and those are the guys that you see him. in and out of the media because they're.

the bear guys all the time and when. there's a bear Market they show up and. then they're gone for four or five years. then they bring they dust them off and. they bring them back because playing on. people's like I could make so much money. if I tell you how corrupt the government. is how much money we're we're we're. printing how our political systems. bankrupt how the stock market is rigged. all of this [ __ ] I would bring so much. money in to hear that. I don't know how to make and some of. that's true but at the end of the day I. don't know how to make money off of that.

because none of that stuff's crashing so. if I short it or if we just sit in cash. because we're so worried and I can't. make money off of it other than charging. you a subscription to feed to hear how. bad the world is. and I just refuse to do that so be. careful of the bear case it always. sounds really articulate and smart. because like I said I could make a. really smart case where I could scare. the [ __ ] out of everybody today also. but it's just not there it's not an. actionable strategy maybe someday it. will be but right now that's not the. plan well that's refreshing because.

that's all I hear is yeah is. we're doomed yep so and I've been. hearing that for 20 something years you. know it's. and I've still made money in stocks I've. still made money in real estate I've. still made money in oil I've still made. money in all these things despite how. they said you could never make money I. mean again do you do you think that it. seems like this could be the fear of. machine too but it seems like Europe's. collapsing yeah yeah is it. it is. um because they I mean you talk about.

political issues over there and you talk. about socialism some of the things that. are driving that economy down the toilet. it is but it's a very small part of the. U.S economy right we're still we're. still very very first of all we're a. very domestic economy about 80 of our. GDP is uh goods and services here in the. U.S China is a bigger deal China is a. much bigger deal in their economy for us. than Europe is well they're collapsing. too correct well they've they've been. collapsing for a while but now and. that's why that's another reason outside. of interest rates why the stock market's.

been going down because China they. haven't been in the high end of real. estate it's actually been in here for. about a year right now because Chinese. have been coming in and buying the high. end of real estate they're putting money. in into our stock market they're. revisiting things here they're bringing. money into the U.S and then also by the. way a large part of our supply chain is. heavy everyone I know that's in garbage. any of those things they're all sourcing. from China and so that got shut down in. the factory that were still open in. China which are charging two to three. times the amount and so now and it's.

really because of the covid shutdown. since that's a singular issue and so now. that they're opening back up that's. actually becoming a catalyst uh for our. economy because things are going to come. down Supply chains could open back up. you're not just now I just I just told. you a friend of mine sold a 60 million. dollar house in Los Angeles just a week. ago to to a billionaire from China so. those things are starting to actually. open up and and those are now a catalyst. that's the other thing you have to be. careful is timing doesn't matter. right so and the the thing is you going.

back to what mistakes do people make. people hear something and they act well. again stock market a lot of asset. classes are leading indicators so by the. time you hear it it's probably already. happened so yes true but Chinese stocks. are down 60 70 percent Starbucks is down. 50 because a large part of its um income. and growth strategy comes from stores in. China so when they can't develop and. open stores in China the stock got hit. 50 oh I don't want to buy Starbucks. because yeah dude but it's down 50 it's.

already priced into it so it's like. you're bringing out the water hose when. the house has already been burned down. so that's the whole thing you want to. think about what don't people know or. expect to happen today and so that's why. the stock market right now today. it's like the start and go start like. it's like are we out of bottom are we. not at the bottom because what we're. trying to do is determine when and this. is everything all if I knew when the Fed. was going to stop raising interest rates. and start cutting them I'd be a. billionaire and that's what everyone's. trying to do is because you have to get.

ahead of that once they start cutting. rates it's too late things have already. moved up so what everyone's doing is. when the FED comes out every month and. talks about it they're parsing every. word like oh I think they're gonna slow. down because they want to jump ahead of. that because stocks are going to move in. advance of that just like they move down. in advance of them of them raising. interest rates okay so what everyone's. trying to do is jockey for positions so. to make money and everything you got to. like wait when they asked Wayne Gretzky. why was he so great he said I skate to. where the puck is going not where it's.

been it's the same thing in investing. you got to figure where is the putt. going so what everyone's trying to do. now is they're saying okay Starbucks all. these things they've been crushed 60 70. percent right and when a stock goes down. 50 percent. you know simple rule of numbers if you. put a thousand dollars into a stock and. it goes down 50 percent. it doesn't take 50 to get back to even. it takes a hundred percent. because a hundred cut to 50 you now need. to get another 50 bucks to get back to. 100 so now you need a hundred percent. rate of return so what you're doing now.

looking is saying well [ __ ] if I could. get started if I can get into Starbucks. now and in five years it just gets back. to where it was two years ago for the. people who paid that price I actually. get 100 rate of return on my money so. now what you're doing is trying to find. these like Starbucks isn't going on. these but you're trying to timing. matters you don't want to get in and. catch a falling knife so everyone's. trying to determine myself included now. is how much do we put in so that's why. I've been telling people when I'm on you. know Fox like okay should people buy I. said look we're getting close like can.

we go down another 10 to 15 percent yes. don't go all in but start putting some. money in here right it's called dollar. cost averaging if you're gonna invest a. thousand bucks maybe put 200 now okay. wait and kind of see what happens but. don't wait until now the FED says we're. cutting interest rates because then. Starbucks isn't going to be 50 lower. it's going to be 50 higher than it is. now oh God you see so that's be careful. of finding this narrative oh Europe's. bad China's bad let's short Europe. people do that like they get this.

information and it's like dude it's. already priced in you know so you're. you're trying to get that's the tough. part right is you're trying to make. investments based off of things that may. or may not happen and that's why you. want to take a broad-based approach. right so if you think China is going to. recover cool maybe put five percent in. the China if you think Texas again don't. like going back to my client who was all. in on the dollar crashing and super high. inflation may happen and he'll be a. billionaire but if it doesn't he's broke. right so don't even though you have all.

the data on your side again dude I've. seen there's they are pretty much. they're all doing all these things but. it hasn't occurred and the problem is. we're not Pension funds or endowments. we're not investing for a thousand years. we live to 100 at most. so I maybe got another 50 years probably. not that long 30 years so I need [ __ ] to. happen now like if it happens in 30 or. 40 years yeah that's great maybe my. heirs will uh take advantage of it but I. have to invest for today most people. that are listening to the show have to. invest for today so be careful of. letting your opinion 100 guide your.

investment decisions oh good when do you. think the markets are very volatile. right now it seems like when do you. think these are going to calm down I. think it's going to calm down once we. get more certainty around interest rates. and so what what and how do you look at. that well you look at like a print. that's just came out on CPI why the. stock markets just recently rallies. because again everything is based off of. expectations so the Consumer Price Index. which gives us our measure of inflation. whether three percent eight percent. comes out monthly but there's economists.

that are predicting what that number is. going to look like so again it's all. expectations so if the prediction is. eight percent and it comes in at 7.5. markets rally because like wow it's. actually better than expected so. inflation's coming down and what does. that mean well if inflation's coming. down the FED could start stop raising. rates and cut rates and we said remember. rates are the most important thing for. the economy you're investing because. when that tenure what happens if the. 10-year bond goes to eight percent we're. in a lot of trouble I'm not investing in.

stocks if I could put my money in. 10-year bonds and get eight percent so. when those things come down that's great. and so what did we say about the FED. they don't care about employment right. now because it's fine they care about. inflation so what I'm watching right now. is inflation because inflation is going. to tell me what the FED says because the. fed's watching inflation so I watch. inflation numbers so again we're trying. to jockey for a position I'm watching. inflation numbers because if those are. cool I'm not going to wait three weeks. for the FED to tell me they're cool. but that's another mistake people make. all the way for what the FED says yeah. but a lot of people made that decision.

based off of what that the data was that. the fed's looking at okay you see so so. when I'm so as soon as we have. a little bit more confirmation and we're. seeing it so there's something called. the VIX Index vix you can Google it it's. on Fox Business on CNBC Yahoo finance it. says the VIX Index that normal number is. around 17 that's a normal measurement. we've been in about 45.50 super high. sometimes we'll get eight or nine when. there's no volatility we've come gone.

from about 40 something we're down to. about 25 now so the volatility has been. coming out of the market if you notice. like we hit a low a few months ago we. haven't penetrated that low we've just. been bouncing around and it's and that's. the thing about the market it's kind of. cool when you understand that well the. markets just basically articulating its. opinion of what we're talking about we. probably hit Peak inflation we probably. still have a little further to go on. real estate so if you look at real. estate stocks they're actually starting. to do worse now uh maybe tech stocks at.

bottom but we're not quite sure we're. looking week to week on data so once we. know that the that's why we're listening. to the FED every month once they come. out and say yeah we're done using. interest rates things are going to be. Off to the Races volatility is going to. come out of the market we're getting. close to that if I had to bet we'll. probably bottom I think we've already. bottomed uh but I think we'll stop. having this huge volatility sometime in. around the first quarter next year. especially as we start to hear that the. FED might start cutting rates in the. second half of next year also what I.

would tell you is we just had a midterm. election if you look six months out of a. midterm election since the 1950s a. hundred percent of the time the Market's. been positive doesn't mean it's going to. happen this time no but 100 of the time. it's been positive when you look at a. year where the Market's down 20 percent. or more the rate of return is huge one. year out so now we're at a situation. where midterm we still don't know. technically what's going on with. everything but. um we have a year where we might finish. down 18 to 20 on the S P 500 we've got.

supply chain opening back up fed should. be getting uh done with what's going on. and so now people are starting to think. the opposite okay interest rates going. up inflation everything that would kill. assets we're gonna get to the inverse of. that and just one other thing I said the. interest rates are the most important. thing we talked about assets but think. about the consumer we all have a lot of. debt still some people buy floating rate. mortgages where they have to refinance. uh we we well hopefully we don't have. debt but everyone else has debt but. credit cards credit cards right those.

are super high rates but what happens. when rates go up credit cards don't stay. at 16 they go to 24 25 when people buy. homes they're not at three two percent. they're at seven percent when people. have student loans those are revolving. debts so instead of 300 a month payment. is 400 a month payment so why does that. cause a recession when rates go up. forget about asset prices the average. person has debt payments their credit. cards their car payment everything goes. up so now if they had an extra thousand. bucks a month after they paid all their. bills but now their student loan rate.

went their student loan payment went up. their credit card went up they have to. refinance their house now because it's. due after their five-year arm instead of. a thousand bucks extra that they had to. spend now it's 200 bucks. so now the average household that again. we said 70 of the US economy is based. off of the consumer spending if they can. only spend 200 bucks in the economy. versus a thousand that's going to have a. hit that's what causes recessions. so we need to we need to get not just. asset prices but to get more money back. into the consumer's pocket because if.

more money goes to Debt Service less. that goes to buy a new car less that. goes out to eat less that goes to buy a. new shirt new tie okay this is a lot. simpler than I was thinking it's all. real simple that's what I'm telling you. like as soon as you start to get the. correlation it starts to demystify. what's going on out there like you don't. learn it overnight that's why I would. say if people just spend a year. listening to me I try to make it as. simple as possible it's not that. difficult and like I said once you get a. baseline level of knowledge no one. really knows more than we're all just. trying to guess at what's going to. happen no one really knows exactly. what's going to happen it sounds like.

it's a lot of just cutting through the. [ __ ] it's cutting through the. [ __ ] but um it's all basic at the. end of the day higher interest rates. suck because it makes things more. expensive and unless you're making a lot. more money when things are more. expensive you have a lot less to spend. with inflation that I've heard the. numbers it's it's what eight nine. percent right now it's about yeah eight. point four a lot of people are saying. that it's actually what 18 19 is there. any truth to that or is that is that. yeah I mean there's you know when you're.

talking about uh X food and energy. you're starting to start taking off. things of different depending on what. inflation report you're looking at yeah. and then you look at things like okay. well there's not just inflation from. Procter Gamble that I'm paying you know. eight percent more for my uh paper. towels or my box of cereal but that box. shrunk by eight ounces right so so now. those are the sort of things that they. start thinking about because yeah if you. had a 12 ounce box of cereal that was 10. bucks but now it's an eight box eight.

ounce box of cereal that's 11 bucks it's. not just that 10 increase from 10 to 11. it's actually much greater than that. because now I'm getting a lot less in. terms of volume and that's a trick a lot. of people and that's the stuff we have. to spend money on we have to buy milk we. have to buy cereal we have to buy. diapers all those things so they call it. shrinkflation so that's what's happened. with a lot of things that we're doing as. well okay yeah and what about gas is gas. yeah so so in the in the traditional uh. you go X food and energy so you're. taking those things out out of the out.

of the report so gas for a lot of people. is a real expense and the thing about. gas and why I said when I'm looking at. oil prices when we're skyrocketing now. we're back down below 100 a barrel when. you think about gas gas is one of the. major inputs fuel oil is one of the. major inputs into inflation why well. because everything has to be transported. either by Ship by truck by plane and so. what's happening is if oil prices are. high. to transport cargo is going to be more. expensive everything starts getting more.

expensive so it's a major input into. that and that's why you see even locally. in places like California some of the. same things you buy at the store are. more expensive than they are here in. Tennessee why because I'm paying seven. bucks a gallon for gas in California. versus four bucks a gallon here why. because they have certain taxes that are. that are tacked on the price of gas over. there okay so there's local economics. and there's National economics that's. yeah that's something I didn't even. didn't even put that together yeah yeah.

you know to be honest with you. but let's take a quick break yep. I want to give a big thank you out right. now to all the vigilance Elite patrons. out there that are watching the show. right now. just want to say thank you guys you are. our top supporters and you're what makes. this show actually happen. if you're not on vigilance lead patreon. I want to tell you a little bit about.

what's going on in there so we do a. little bit of everything there's plenty. of behind the scenes content from the. actual Sean Ryan Show on top of that. basically what I do is I take a lot of. the questions that I get from you guys. or the patrons and then I turn them into. videos so we get right now there's a lot. of concern about self-defense Home. Defense crimes on the rise all. throughout the country actually all. throughout the world and so we talk.

about everything from how to prep your. home how to clear your home how to get. familiar with a firearm both Rifle and. Pistol for beginners and advanced we. talk about mindset we talk about. Defensive Driving we have. an end of the month live chat that I'm. on at the end of every month where we. can talk about whatever topics you guys. have it's actually done on Zoom. you might enjoy it check it out and if. zoom's not your thing or you don't like. live chats like I said there's a library.

of well over a hundred videos on where. to start with prepping all the firearm. stuff pretty much anything you can think. of. it's on there so anyways go to. www.patreon.com. vigilance Elite or. just go in the link in the description. it'll take you right there. and if you don't want to and you just. want to continue to watch the show. that's fine too I appreciate it either. way love you all let's get back to the.

show. shocking scenes of desperation and Chaos. in Afghanistan are being seen around the. world can't believe my eyes says the man. who shot this video of people clinging. to an American cargo jet as it takes off. [Music]. thousands of panic-stricken Afghans. stormed the airport.

for Special Forces or Green Berets as. our nickname calls our our specialty is. irregular warfare unconventional warfare. where we work with indigenous people to. help them stand up on their own and. fight against depression. when that pull out started I had friends. sending me videos of what they were. doing to our Commandos there must have. been 20 Commandos lined up yeah no hands.

behind their back and they were just put. one round. yep it looked like [ __ ] World War II. the call that I knew was coming. from nazam and he said sir they're. they're looking at my window right now. I said to him something to the effect of. look you're not gonna die alone you're.

not gonna die at all. we're going to get you out man you're. going to get across that City you're. going to get through the crowd you're. going to get past the Taliban you're. going to get past the Marines. [Music]. why why does this kid have to die like. right and and everything in my life in. that war came down to him if we don't. get him in on the inside of that Taliban. ring they're going to check his. credentials and he's dead.

all right Rob we're back from the break. I want to wrap this up but um I did have. one I did have a question. you've been talking about the best thing. for entrepreneur the best thing for. entrepreneurs to do is invest in. themselves and if you want to get. wealthy start a business yeah. I heard you say in another podcast that.

people that start their own business I. remember you talking about one guy who. he was he was worth about a hundred and. twenty thousand dollars and invested. everything he had into his business. that's why it was worth 120 000 and then. it came out. worth I don't know 10 million or. whatever some substantial amount of. money. what are most entrepreneurs investing in. other than themselves I I pretty much. invest just in my company yeah yeah.

um. but I'm always looking for other ways to. invest and one thing that I have been. thinking about investing in I love real. estate I love looking out at me and my. wife love looking at real estate would. it be advantageous for me to. buy a studio versus rent yeah so I I. think one thing about entrepreneurs is. when when you take a look at what you're. doing in terms of investing either way. when you're an entrepreneur you're. making a big investment in yourself.

either way because if it doesn't work. out you're screwed so you're all in on. yourself and essentially you're taking a. tremendous amount of risk with your. future income because you're banking on. yourself to be able to provide that not. only today but hopefully grow that. income over time and so when you think. about it from that perspective there's. already a big risk investment in your. portfolio and that's in your business so. what I try to do is have most and I. don't think you should not be that way. because I think and you talked about it. you've really narrowed in and focused. what you're doing right now where you're.

all in on one thing all effort energy. and resources and that's a double-edged. sword to where because you're all in on. that if that doesn't work out you're. kind of screwed but because now you're. putting yourself all in you're giving. yourself the greatest opportunity of. exponential success okay but because. you're doing that also you have to think. okay if I'm taking risk with my business. do I want to be coupling that with risk. in my portfolio on cryptocurrency and. venture capital and some of the riskiest. Investments out there or do I want to.

look for way is to kind of stable and. buffer that and that's the whole idea. about putting an Investment Portfolio. together is your strategically putting. together assets that are going to buffer. each other meaning when one goes up one. Nest is going down or the corollary if. everything in your portfolio goes up and. down at the same time you're not really. Diversified and that's really why we. diversifies to kind of even up that ride. so what I would say is. start to focus on going back to where. what you want to be doing simultaneously.

is building an Investment Portfolio that. one day is able to replace the income. that you're achieving for your active. job for various reasons number one no. matter what we all do we don't all want. to do it forever no matter how much we. love it so you want to be able to take. that off but also like I've had people. to where they get the portfolio in three. four years where maybe they're working. six days a week they still love what. they're doing but they want to work. three days a week and now they've got. enough supplemental income that's coming. in where they're able to do that so what. I would really focus on as an.

entrepreneur or whatever income. producing assets what are assets that. are going to generate passive income. that are going to allow me maybe at some. point in time where if I have a bad. month or two months I might not be. taking the money out today I might be. reinvesting in it but if I needed to I. have somewhere where I can get passive. income you know one thing I always did. for myself as an entrepreneur if I had a. payment on something like a car payment. for example I would look get in one of. my port one of my accounts that's not an.

IRA account just a taxable account I. have I have dividend income that comes. out and the evidence are paid every. quarter and what I normally do is. reinvest that but then when I said okay. what I want to start doing now is I'm. only going to buy a car if my dividends. that come out every month are enough to. pay for that car payment so I just have. those dividends come in and transfer and. I started doing that with other payments. so I wasn't yet to that point where my. portfolio covered all my expenses but I. started one expense at a time and then. you get it to where your mortgage could. do it and then it's kind of cool right. because they're like hey my car is paid.

by this portfolio my mortgage is now. paid for this and once that's doing. simultaneously it's taking pressure and. stress off of you as a business owner to. have to go out there and crush it every. month and one thing I noticed in as. being a financial advisor early on. people could smell and like you feel. desperation when you really need the. money and you're out there for some. reason you know call whatever it is it. doesn't happen but when you get extra. point I got to a point where I I didn't.

have to work with people I didn't want. to lo and behold I have more people that. wanted to work with me than ever before. and so that's what I tell entrepreneurs. you're going to start making decisions. that are the most strategic decisions. for your business when you're not. worrying every month about paying the. bills and so if you could start building. a portfolio that allows you to be more. strategic and and make decisions in your. business that are longer term growth. oriented versus how do I make a dollar. today because I have to pay my bills and. we all start there when you're an. entrepreneur that's what I would.

recommend so what do you do dividend. paying stocks look bonds there's some. good bonds out there right now I bought. some corporate bonds that are paying me. seven eight percent interest a year you. can buy cash flowing real estate The. Challenge and I love real estate the. challenge now though the the interest. that comes off of a a piece of property. is called a cap rate so your three cap. four cap the problem is now a lot of cap. rates because interest rate got so high. from multi-family units I'm seeing are.

three and a half four percent so. remember going back to that 10-year. bonds like why am I going to take that. risk at three percent if I could just. clip the coupons on a Government Bond. for four so I'd rather see real estate I. love as part of the portfolio I love. self-storage because that's easy someone. moves out you just hose it out you're. not rebuilding what someone else in I. love apartment complexes I love. industrial warehouse space I love lower. maintenance really I love self storage.

and Industrial Warehouse because you're. not worrying about tenants or anything. like that destroying anything in a. castor oil Rod so I would be more. focused if I'm an entrepreneur investor. on cash flowing versus growth okay the. corollary is if you're a doctor right. well you've got a I work with a lot of. Physicians earlier in my career they're. not they're not you know unless they. screw something up they're going to have. a job forever they're making a half a. million bucks plus a year they're maxing. out their 401K for them but there's no. surprise at the end of the day they're.

not going to build a business that's. worth 100 million dollars they're not. going to generate Castro from their. business if everything takes off of. three four million dollars a year they. never have that opportunity so what I. tell them is look max out your 401K do. what you're doing like have that that's. that stuff you know you're doing all. that you're always going to be able to. pay your bills you're not going to have. to touch your portfolio until you're. done practicing but be in some of those. speculative Investments buy some raw. land out where I think they might start. building in five ten years buy some of. those smaller more speculative companies.

that they might not work out but they. could 10x 100x your money over time so. again remember back when you asked me. what do I invest in it's a very. important question to understand what. are you trying to accomplish and so the. doctor it might be in your Investment. Portfolio be super speculative and. aggressive because that's your chance to. like change your life right with their. Investments your business isn't going to. do that but for you what I would say is. hey you've got a lot or any entrepreneur. if you do it right you've got a lot of. upward momentum toward your income can.

significantly increase you can be able. to build value in the business that you. might not totally sell like I did to a. company but you might have Junior. partners that buy from me it might be. other people there's there's many ways. to exit so what I would say for you is. get that portfolio becoming your. stability your source of uh income and. take that because being an entrepreneur. is very very uh stressful when you're. when you're thinking like hey the only. way this is going to work out if I go. and get new subs or I go get a new.

client or I go do one of those things. when you can do that and you've got. three or four months of not doing that. you start to second guess yourself and. especially when money's not coming in. but when you've got money flowing in and. you can rely on that again you're not. panicked as much that and what does that. all do you have better relationships. you're nice to your kids you become a. better person money's money's a serious. issue so I would invest in more of those. passive income types of things this is. probably a very Elementary question but. is. can I buy stocks crypto through my.

business or do I need to transfer money. out of my business out of my personal. account you can but there's really no. personal advantage to do that you're. taxed differently so you're much the. only the only time you should be buying. stocks through your business is if you. create a 401k plan or a set plan a. retirement plan that's specifically for. the business because then depending on. what that plan is it's going to allow. you to take some of the money from your. business put that into that account and. it's pre-tax so you won't be taxed on. that money okay so let's just say if you. do a defined benefit plan depending on.

your income it might allow you to put. away say you make two hundred thousand a. year it might allow you to put forty. thousand away it goes into this. investment account you can invest in. whatever you want crypto stocks real. estate investment trusts on that forty. thousand dollars you wouldn't pay income. tax though you'd only pay on the other. so there's a benefit but if it's money. outside of that you have greater. benefits in terms of cost basis and. things you can do investing as an. individual so only invest in your. business if you have a business this. retirement plan there's easy way you.

could do solo 401K you could do sep you. could do a defined benefit plan there's. things that you can do just Google. Business retirement plans call Schwab. called TD Ameritrade you could set that. up even put it in an index fund. something really simple do that but if. you're going to invest outside of that. just open up an account in the name of. your trust if you have it or in your own. name or in a joint name with your wife. if you're married or husband if you're. married okay. what do you think about paying off debt. like mortgages yeah so again uh you know.

financial planning is a little bit of. Art and a little bit of Science and um. it's getting to know the person and so. there's certain people who. um they can handle stress really really. well and um you know they don't. necessarily mind. um having some debt if it makes economic. sense because here you know here's the. thing when I when I look in this when. you look at someone's mortgage for. example you know a lot of people will. come in let's say they've got a million.

dollar home they've got a 300 000. mortgage and they're saying hey should I. just pay this off Rob and I'll look at. it and I'll say well let's do a simple. analysis you're paying three percent. interest rate right now what have your. the rest of your Investment Portfolio. done over the last five years let's say. and they'll say well nine percent I said. okay then we got some tax advantage so. let's take that three to four percent. you still have 500 basis before answer. five percent. difference between what you're paying. there and what you can earn so on three.

hundred thousand dollars that's about. let's call it fifteen thousand dollars a. year or more so the right financial. decision is don't pay off that mortgage. invest it because you're going to make. fifteen thousand dollars a year but then. there's the other thing of like I was. telling you as an entrepreneur well if I. pay off that mortgage there's a lot less. stress on cash flow that I have to pay. out and it's where I live I could put my. head down at night I know nobody's going. to take it away from me so how do you. quantify that and so what I would say is. like it's really understanding the.

person so. um I've had a lot of people I talk about. an athlete that moved out to maybe was. off camera we're talking about an. athlete client of mine who moved out to. Texas. and uh he was just one yeah he had a ton. of money and he was just one of those. people where I just knew he felt better. if he had no debt and so for him it. would have made more economic sense to. put debt on it but he liked the fact. that he was in the NFL he retired he was. able to pay off everything that he had. zero debt and he was able to take the. cash flow from his portfolio and that. cash flow generated about 300 percent.

what he needed to pay all the taxes and. bills on that so for him that was his. definition of financial success right he. didn't have to worry about interest. rates or anything like that so again it. goes back to that plan and it's really. dialing in who am I what's important to. me where am I at today. putting a clear concise. um road map of where you're trying to go. and just doing everything consistent. with that so if you know you want to.

retire at 60 and you don't want to have. a mortgage well then maybe doubling up. on your mortgage payment makes a lot of. sense right. there's no there everyone wants like buy. this do it this way do it that way like. I said buy stocks and bonds because that. always helps you until it doesn't. there's just no one way I wish there was. because it'd be a lot easier for me but. it's just like that's why I always talk. to people about just understand a little. bit about bonds understand a little bit. about stocks a little bit about real. estate and more importantly understand. about yourself and where you're trying.

to go because no one else could do that. for you you could always call Rob or. anyone else and if you need hey I'm. doing this and if you know where you're. trying to go I can give you specific. advice based off of that so that's what. I would encourage everyone out there and. you can find good certified financial. planners that are fee only they'll. charge you a little bit of money to just. put the plan together they don't have to. invest your money anything pay him a. thousand bucks or whatever it is put the. plan together so you know where you're. trying to go and then start educating. yourself on those things one thing at a. time okay.

for the average American let's say they. have ten thousand dollars or less to. invest yeah. where would you tell them to put the. money so if they have ten thousand. dollars to invest and let's just assume. this is long-term money that they that. they don't need away and they can put. that away I mean I think the best thing. for most people quite honestly is just. to buy an index fund so you could buy. the US S P 500 Index Fund you buy the. 500 biggest companies out there and if.

you look at that over the last 20 years. it does about nine to nine and a half. percent a year there's no management. fees on that you don't need to think. about it you don't need to do anything. you just put it away in a nine percent. rate of return there's a pretty good. rate of return if you're able to. continue to feed that over a period of. time so a lot of people will tell you to. buy this thing or buy that thing they're. trying to make a commission or do that. just buy an index fund super low cost. it's free Schwab TD Ameritrade Robin. Hood whatever it is you want to go buy. it's spy is the symbol you could buy the.

ETF it's like one hundredth of a percent. to own it and just put it away for 20. years 15 years you'll be fine perfect. well Rob it sounds like this is great. news I was really expecting you to say. that we're going into the Great. Depression and so yeah sorry I couldn't. deliver worse news so so this is a. refreshing interview and. um but what do you what do you have. coming up anything yeah well you know. I'm I'm uh transitioning out on my.

wealth manager firm at the end of the. year I've got an academy where I've been. helping educate people on stuff like. this how do you create your own plan how. do you put that in place because like at. the end of the day I think there's some. great financial advisors and you can. still work with them but no one's going. to care more about your money than you. do and so educating yourself at least to. a position where no one you could take. and take advantage of you I think is a. super important thing to do because it. is your livelihood it is your life. savings that you're talking about. investing so. um that's the academy that we're working. on we're launching a new firm realtalk.

Capital to give people access to a. certified financial planner anywhere. from 500 bucks a year uh to get a plan. to put those things in place to kind of. work alongside them versus handing it. over to someone we're launching down in. January and I'm uh just signed a book. deal with Wiley I'm going to be writing. a book closing the wealth Gap teaching. people some of these things of how they. can do it that should be out I was. hoping the way how quick I write I was. going to get it done by February they. told me it won't be done till next fall. so I guess next fall people don't move.

fast these days anymore so next fall. that'll probably be out but um yeah. people could always go to my website. robloonen.com WE Post there what's going. on and uh. um yeah email me whatever it is always. willing to you know give people advice. and perfect hopefully get get them in a. position where they're controlling their. own Financial I think I'm going to join. your wealth Academy now so but uh. everything will be linked Below in the. description your website all your social. media your phone number I'm just kidding. but uh just put my address if you're. gonna put your address out there but hey.

man I just I want to say I really. appreciate you coming out here I learned. a ton I know the audience learned a ton. and and I just I hope to see you again. it was great man I appreciate it thanks. for the opportunity Sean cheers thanks. man thank you. foreign. click here to subscribe to the Sean Ryan. Show YouTube channel for the hottest and.

most compelling interviews that you will. not see anywhere else I've also made a. playlist of all the previous SRS. episodes so they're easy to find you can. find that. right here.