May Happy Hour

Transcript

May 6, 2021 . 3:56 PM . ID: 673332653

Transcript

00:01 – 00:03
[speaker unknown]

This conference will now be recorded.


04:42 – 04:43

Todd Smith

Rod Harrier?


04:47 – 04:48

Rodney Hopfe

Ok, can you hear me?


04:49 – 04:49

Todd Smith

Ok.


04:50 – 04:51

Rodney Hopfe

Ok?


04:55 – 04:56

Rodney Hopfe

I’ve been busy.


04:56 – 05:02

Rodney Hopfe

I’m on the road right now, so I was just, trying to listen and for a few minutes.


05:02 – 05:02

Todd Smith

Yeah.


05:05 – 05:05

Todd Smith

Very hidden.


05:07 – 05:07

Rodney Hopfe

Denver.


05:08 – 05:09

Todd Smith

Ok, OK.


05:10 – 05:14

Rodney Hopfe

Yeah, my daughter’s not feeling the best, and so I’ve been out there for quite awhile lately.


05:16 – 05:18

Todd Smith

Know, is everything going to be OK?


05:18 – 05:20

Rodney Hopfe

Yeah, we’re working on it.


05:22 – 05:23

Todd Smith

Will keep me updated.


05:23 – 05:29

Todd Smith

We can talk primarily about that, But I’ll be thinking if you hope it goes, OK.


05:30 – 05:31

Rodney Hopfe

Yes.


05:31 – 05:38

Rodney Hopfe

So I’m going to be listening mostly because I’m going to be in the car unless I’m the only one.


05:39 – 05:41

Todd Smith

We have a bunch of registered so far.


05:41 – 05:42

Todd Smith

There’s only a couple of people.


05:42 – 05:44

Todd Smith

So there might not be too much listening to do so.


05:50 – 05:51

Todd Smith

I’m shooting from the hip, but that’s OK.


05:51 – 05:54

Todd Smith

And that’s this is designed to be for you folks.


05:54 – 05:54

Todd Smith

Not me.


05:55 – 05:55

Todd Smith

Right?


05:57 – 05:59

Todd Smith

Yeah, if you want to sign, if you want to challenge yourself or whatever.


05:59 – 06:00

Todd Smith

Just listening.


06:01 – 06:02

Rodney Hopfe

Yeah.


06:02 – 06:02

Todd Smith

Cool.


06:03 – 06:04

Todd Smith

Yeah, we’ll catch up soon.


06:05 – 06:10

Todd Smith

Invite should have gone now, just a little while ago for our next meeting.


06:10 – 06:21

Todd Smith

So give it a little bit different this time where you can kind of sign up on my calendar directly, and just to make a little bit more convenient.


06:21 – 06:30

Todd Smith

So look for that if if you feel that we should probably do a meet here, kind of get together anyway.


06:30 – 06:30

Todd Smith

Yes.


06:30 – 06:32

Rodney Hopfe

Yes, Yes, absolutely.


06:34 – 06:35

Todd Smith

So we’ll look for that.


06:37 – 06:42

Todd Smith

Safe travels, navigator, Denver, and hopefully it’s OK and good luck.


06:43 – 06:44

Rodney Hopfe

Thank you.


06:45 – 06:46

Todd Smith

We’ll talk soon.


06:46 – 06:47

Rodney Hopfe

Ok?


06:50 – 06:53

Todd Smith

There’s Frank in his cabinet and gives us a tour.


06:55 – 06:56

Todd Smith

Where’s the fish?


06:56 – 06:58

Todd Smith

All the fish you catch Cott.


07:03 – 07:04

Todd Smith

He can’t hear me.


07:05 – 07:05

Todd Smith

Sure.


07:07 – 07:08

Todd Smith

Hey, Tracy.


07:08 – 07:09

Todd Smith

Can you, Harry?


07:11 – 07:12

Tracy

Yes, I can.


07:13 – 07:15

Todd Smith

Ok, well, there’s the fish.


07:15 – 07:18

Todd Smith

Rod can see, but, so, Rod Frank is.


07:18 – 07:19

Todd Smith

I think you’ve man.


07:19 – 07:23

Todd Smith

He’s summers in the cavity, Wisconsin, too.


07:23 – 07:31

Todd Smith

He he tells me he goes fishing uni catches, you could catch 60 fish, no matter of hours.


07:32 – 07:34

Todd Smith

Just crazy, it’s insane to me.


07:34 – 07:38

Todd Smith

So he usually has his buddies, or for fish fries.


07:38 – 07:41

Todd Smith

Yeah, anyway, it’s interesting.


07:42 – 07:43

Todd Smith

Good to see you, Frank.


07:47 – 07:49

Todd Smith

We’ll wait a couple more minutes to see who arrives.


07:52 – 07:53

Todd Smith

Go from there.


07:53 – 07:59

Todd Smith

We are recording this, so I’ll probably cover a couple of things anyway, posted on YouTube.


08:00 – 08:06

Todd Smith

Um, and if there’s not a lot of questions, we’ll cut it short.


08:06 – 08:08

Todd Smith

It’s my son’s birthday today.


08:08 – 08:11

Todd Smith

So, Cook his favorite meal being Lasagna.


08:12 – 08:13

Todd Smith

So, I’ll hop off early to do that.


08:15 – 08:15

Todd Smith

Hmm.


08:21 – 08:21

Frank Zawatski

Right.


08:22 – 08:22

Frank Zawatski

Ok, for.


08:22 – 08:23

Todd Smith

Angry Birds.


08:25 – 08:25

Frank Zawatski

Sure.


08:27 – 08:27

Todd Smith

What’s up?


08:34 – 08:35

Todd Smith

Oh, I can read your lips.


08:35 – 08:35

Todd Smith

Happy birthday to you.


08:37 – 08:38

Todd Smith

Must slow internet up there, and Wisconsin.


08:49 – 08:49

Todd Smith

Can you hear me, Franke?


08:57 – 08:57

[speaker unknown]

Yeah.


09:05 – 09:06

Frank Zawatski

Hello.


09:07 – 09:10

Todd Smith

I can hear you, and I think it’s your Internet isn’t working particularly well.


09:13 – 09:16

Frank Zawatski

It’s, it’s, the speed is pretty slow up there.


09:18 – 09:23

Todd Smith

Ok, Well, we’re overdue for a phone call, so I’ll talk to you soon, anyway.


09:23 – 09:24

Todd Smith

But thanks for dialing in.


09:29 – 09:35

Todd Smith

So, I’m going to talk briefly since there’s not a lot of people here today, and that’s OK.


09:35 – 09:38

Todd Smith

We’re going to continue on doing this every month.


09:39 – 09:46

Todd Smith

The goal, really, just to re-iterate, is to just give people another opportunity to check in, to visit.


09:46 – 09:54

Todd Smith

The pandemic is kinda Currie this but it’s also convenient for people that are local and also the multiple states.


09:54 – 09:59

Todd Smith

We have clients everywhere, from Alaska, to Florida, currently, and everywhere in between.


09:59 – 10:06

Todd Smith

So, this is just another opportunity for people to jump in, say hello, and ask any questions, if they have.


10:06 – 10:09

Todd Smith

So, my goal today, really, I was thinking about it.


10:10 – 10:13

Todd Smith

It’s really just to check in with people and see how everybody’s doing.


10:13 – 10:21

Todd Smith

Then talk a little bit about kind of financial success and life success in different terms.


10:22 – 10:37

Todd Smith

We’ve been doing these, hosting these for a little while, and most of them are technical, and I thought it might be a good idea to mix a little bit of the non technical technical, for those of you who are clients.


10:39 – 10:50

Todd Smith

We’re been on previous sessions, you know, me, I’m Todd Smith, owner, level five Financial, in the last year or so, we’ve been trying to work on kinda quarterly themes.


10:50 – 10:59

Todd Smith

So, last quarter probably knows more about estate planning, this particular quarters, about kind of tax planning.


10:59 – 11:06

Todd Smith

So, we will be gathering everybodys tax returns, reviewing them, and summarizing them in or report.


11:06 – 11:16

Todd Smith

Just for kinda climate education, but also the interface with the respective accountants and CPAs to identify adjacent there’s other opportunities.


11:17 – 11:22

Todd Smith

So, that’s really the technical side, but, you know, I remember was forgot this in a way.


11:24 – 11:31

Todd Smith

Throughout my career, what I’ve always found is that most successful people kind of blend the technical with the non technical.


11:32 – 11:41

Todd Smith

And of course, you hire us for the technical, But frequently we’re helping people with a non technical kind of the coachee or the soft side of money.


11:42 – 11:49

Todd Smith

So today, I was really going to kind of blend that together, and just open it up for discussion on that.


11:50 – 11:58

Todd Smith

So, Frank, I think you and I talked about doing a lot on behavioral finance, which I think is important.


11:59 – 12:05

Todd Smith

Which, what’s your experience been in terms of behavior and investment in life success?


12:06 – 12:08

Todd Smith

Do you have any input on that?


12:12 – 12:13

Todd Smith

Yeah.


12:17 – 12:20

Todd Smith

You’re unmuted, now you’re muted.


12:25 – 12:26

Todd Smith

Now, you’re unmuted.


12:44 – 12:46

Todd Smith

I can hear, can you hear retracing?


12:51 – 12:51

Tracy

No, I cannot.


12:52 – 12:53

Todd Smith

Ok.


12:55 – 12:56

[speaker unknown]

Theater tonight.


12:57 – 13:00

Todd Smith

Rod Stoller: OK, we can’t hear you Frank!


13:00 – 13:01

Todd Smith

Um.


13:03 – 13:04

Todd Smith

That’s OK.


13:05 – 13:15

Todd Smith

So, so this ties into kind of, what I call, or other people call selective ignorance, selective.


13:15 – 13:29

Todd Smith

They, you know, kind of intentional ignorance, that I tried to adhere to, and it ties into kinda the pandemic, but I also think it ties into being successful whether it’s in your business, or your life, or your finances.


13:30 – 13:30

Todd Smith

Um.


13:31 – 13:49

Todd Smith

So, Tracy Nosiness, I intentionally don’t watch or listen to a lot of news, and I do that for you, and I think it’s, you know, Rod, maybe noses or I can’t remember what type of technology urine.


13:49 – 13:56

Todd Smith

But it’s it’s the it’s always based on the concept of What is it?


13:56 – 13:57

Todd Smith

Guy go?


13:57 – 13:59

Todd Smith

Good information, Good, good.


13:59 – 14:01

Todd Smith

In, good out type of thing, or bad in, bad out.


14:03 – 14:16

Todd Smith

So, I’m very cautious in terms of what I listen to, but there’s a whole segment out, kinda of literature and even the discipline in terms of, um, behavioral economics.


14:16 – 14:23

Todd Smith

And I think where we all kind of go down the rabbit hole is listening to news, reading things that may not apply to us.


14:24 – 14:35

Todd Smith

So, rather than me ramble, I was just going to play something that I thought was pretty cool by doctor Benjamin Hardy, the talked about controlling your attention.


14:36 – 14:37

Todd Smith

Then you kinda control your life.


14:37 – 14:49

Todd Smith

And I wanted people to listen to this in terms of, not only life in general, but your finances, so, since we don’t have a lot of people on here, I’m just going to play.


14:49 – 14:50

Todd Smith

It, will record it.


14:51 – 14:52

Todd Smith

But let me check in with the rod.


14:52 – 14:53

Todd Smith

I know you’re driving.


14:53 – 14:58

Todd Smith

Did you have any questions, or anything that you wanted to ask her mentioned today, or you’re just gonna listen.


14:59 – 14:59

Todd Smith

Hello.


15:00 – 15:01

[speaker unknown]

I was just listening.


15:04 – 15:13

Todd Smith

I don’t think there’s going to be a too much content here today, right, But, I’m gonna play this, think of it as like you’re listening to a podcast, on the way to Denver.


15:13 – 15:14

Todd Smith

But if you don’t know, doctor.


15:14 – 15:14

[speaker unknown]

Benjamin.


15:14 – 15:25

Todd Smith

Birdies always talking about these, a PHD, a younger guy, but I really like, it’s stuff, He’s always talking about how we’re creating our future shelves.


15:25 – 15:27

Todd Smith

I don’t care how old you are.


15:27 – 15:33

Todd Smith

But, I think we’re always chasing our future self and that.


15:33 – 15:36

Todd Smith

That goes into goal setting, we’re trying to improve ourselves.


15:37 – 15:39

Todd Smith

And I think money ties into that.


15:39 – 15:41

Todd Smith

You know, what is the point of money.


15:41 – 15:46

Todd Smith

If we’re not using it for some greater good for ourselves, and for the community, for the world.


15:48 – 15:50

Todd Smith

So he does a really good job talking about that.


15:50 – 15:51

Todd Smith

I think there’s a good speech out there.


15:51 – 15:55

Todd Smith

People might want to go at some point, whether you like him or not.


15:55 – 16:03

Todd Smith

Matthew Mcconaughey gave a speech, I think he was accepting some award a few years ago.


16:03 – 16:05

Todd Smith

He does a really good job about chasing his future self.


16:07 – 16:16

Todd Smith

But more to the point, then, hardi in this, it’s only about five minutes or so, closer to 10.


16:17 – 16:23

Todd Smith

It’s talking about or always mentioning, the intentional ignorance.


16:24 – 16:31

Todd Smith

I was just going to play that for people and then see if anybody questions or thoughts are still working.


16:37 – 16:38

Todd Smith

On your mind.


16:39 – 16:42

Todd Smith

Then, I guess I should share my screen for those.


16:43 – 16:43

Todd Smith

Still work.


16:51 – 16:53

Todd Smith

Let me share my screen.


18:01 – 18:02

Todd Smith

Let’s see.


18:02 – 18:06

Todd Smith

I don’t know why I’m having technical difficulty here.


18:06 – 18:07

Todd Smith

Let’s see.


18:15 – 18:23

Todd Smith

Ok, we’ll just go ahead replay it, But can you hear me?


18:24 – 18:26

Tracy

I can hear it.


18:30 – 18:32

Todd Smith

First one is psychology.


18:35 – 18:36

Todd Smith

Yeah, yeah.


18:38 – 18:39

Todd Smith

Things going on all around him.


18:39 – 18:45

Todd Smith

Opportunities, situations, people, that you’re completely unaware of, because you’re so focused on it.


18:48 – 18:52

Todd Smith

Yeah, Bitcoin, Bitcoin is something that more and more people are aware of.


18:53 – 18:56

Todd Smith

Maybe as a whole?


18:56 – 19:00

Todd Smith

Right now, I think, more?


19:02 – 19:02

Todd Smith

Deeply about.


19:07 – 19:07

Todd Smith

Yeah.


19:10 – 19:10

Todd Smith

Millionaire?


19:12 – 19:13

Todd Smith

So, we’re all.


19:16 – 19:17

Todd Smith

A Harvard psychologist.


19:20 – 19:22

Todd Smith

There are millions of things going on all around us.


19:23 – 19:32

Todd Smith

And the reason we’re finding them is because we’re focused on what matters to us, our experiences, your experiences whenever you William James.


19:36 – 19:44

Todd Smith

It’s not the fact that genius has a better ability to focus attention on other people.


19:45 – 19:51

Todd Smith

Albert Einstein put his attention on to see if other people are still blind.


19:53 – 19:58

Todd Smith

First one, is blindness and my question to you, is this, what was your former life?


19:59 – 20:01

Todd Smith

Now, that’s a really great question.


20:01 – 20:06

Todd Smith

What do you currently aware of, what you’re currently pursuing, it seeking that your former south?


20:08 – 20:24

Todd Smith

Had no clue, what are you aware of seeking and pursuing or striving for creating your perspective, your former south, hopefully, is more than you are right now, Knows more than you.


20:25 – 20:27

Todd Smith

An obvious question.


20:29 – 20:32

Todd Smith

What is your future focused on, aware of?


20:32 – 20:33

Todd Smith

What do they value?


20:33 – 20:34

Todd Smith

What are they worried?


20:34 – 20:40

Todd Smith

It was a great quote that says, The best time to plant a tree was 20 years ago this time.


20:41 – 20:48

Todd Smith

And so if you want to think about what does your future self one, what should you be focusing on now?


20:50 – 20:51

Todd Smith

To start thinking about what?


20:52 – 20:53

Todd Smith

The second concept?


20:53 – 20:59

Todd Smith

And it’s actually a lot of ways the exact opposite concept actually called strategic ignorance.


21:00 – 21:11

Todd Smith

Strategic ignorance, where you’re strategically making yourself, like, you don’t want to be aware of, it’s about creating a filter and boundaries of your attention so that you don’t match.


21:12 – 21:18

Todd Smith

So, one question is, What are a lot of things that you’re currently aware of, or currently focused on, are currently distracted by?


21:19 – 21:23

Todd Smith

That you shouldn’t be blind to, other words, what should you be strategically?


21:24 – 21:31

Todd Smith

There’s so many things going on that are relevant to your goals, or to your situation, or to your values.


21:31 – 21:37

Todd Smith

You may be distracted, so what are all the things in your life that you should become more blind?


21:37 – 21:40

Todd Smith

In other words, what can you become more on purpose?


21:45 – 21:46

Todd Smith

Using me as an example.


21:49 – 21:55

Todd Smith

He is aligned on purpose to mainstream media, because it’s it’s not all the biases.


21:55 – 21:58

Todd Smith

He doesn’t see the famous author.


21:58 – 22:18

Todd Smith

He’s chosen to be strategically how people review his books on Amazon history, what people say about his books, and he realized it was chosen to be strategically chosen to create rules or boundaries for a filter for no longer needs to see anything that’s going on there.


22:21 – 22:30

Todd Smith

Question number one, is, what do you currently aligned to your future self start, becoming more aware of, Start thinking about so that you can start with those opportunities in those situations.


22:30 – 22:38

Todd Smith

Because right now, there’s things coming out of your work that you’re probably not aware of, because you’re so focused on what have you.


22:40 – 22:43

Todd Smith

There’s once in a lifetime opportunities that present themselves to you all.


22:45 – 22:48

Todd Smith

Call them a little tests, pop up here.


22:49 – 22:54

Todd Smith

And you may sell those tests, because you’re either on those tests, because you don’t even notice.


22:58 – 23:04

Todd Smith

The question becomes what do you want to be focused on, what we want to really prepare for right now?


23:08 – 23:09

Todd Smith

That’s number one.


23:11 – 23:21

Todd Smith

Strategically, right now, actually focus in order to create wealth, great concentration, concentration is how you eat!


23:21 – 23:22

Todd Smith

Well!


23:26 – 23:26

Todd Smith

That’s what I do.


23:28 – 23:37

Todd Smith

So all of this brings us to the third, which is selected, selective attention in psychology that we all do and that it was shaped by what we give our attention.


23:38 – 23:40

Todd Smith

Stephen R Covey said we see the world.


23:43 – 23:46

Todd Smith

We all have a mental health or dancehall and tenure.


23:48 – 23:49

Todd Smith

Here, when your brain is looking for.


23:49 – 23:58

Todd Smith

Now, if you want to be a conscious, intentional human, and what you need to do is you need to decide what you want to direct you towards, your brain is always looking for something.


23:59 – 24:02

Todd Smith

That’s what we see selectively.


24:03 – 24:05

Todd Smith

We don’t see the whole world as long as we are.


24:07 – 24:08

Todd Smith

And as we’ve trained.


24:09 – 24:10

Todd Smith

And so, what do you do?


24:11 – 24:12

Todd Smith

How do you take office?


24:12 – 24:13

Todd Smith

It’s three simple strategy.


24:14 – 24:20

Todd Smith

Number one, realize that right now, you’re currently blind to a lot of things, to be aware of.


24:21 – 24:24

Todd Smith

Think about what your future wants and what they’re up to.


24:24 – 24:31

Todd Smith

The sooner you can start becoming less, and you can start to actively wake yourself up.


24:34 – 24:39

Todd Smith

Ok, Another great thing to do now is to continuously reflect on the progressions.


24:44 – 24:47

Todd Smith

Taking time to look back on what you’re what you’re.


24:49 – 24:50

Todd Smith

Pursuing.


24:53 – 25:03

Todd Smith

Now knows things that you actually Daniel Kahneman, the author of Islam, he, was recently interviewed by, and.


25:06 – 25:09

Todd Smith

Have you, do you see the world the same way you did, when, you.


25:11 – 25:13

Todd Smith

Know, I totally see so many things that I did.


25:17 – 25:25

Todd Smith

So excited about that, how does it make you, know, based on what you’re doing?


25:27 – 25:28

Todd Smith

He basically just said.


25:30 – 25:32

Todd Smith

So there’s no point being that.


25:33 – 25:34

Todd Smith

It’s actually very powerful.


25:36 – 25:37

Todd Smith

Your former self.


25:40 – 25:55

Todd Smith

Example, you know, 7, 8 years ago when I was necessarily thinking about that wasn’t thinking about setting up my life and developing, focused on my schoolwork sort of aligned to opportunities for building a lot because I’m so focused on getting A’s.


25:59 – 26:00

Todd Smith

Also see the progression.


26:00 – 26:02

Todd Smith

I can see that right now.


26:04 – 26:09

Todd Smith

Pursuing the goal for all very different from my forest off.


26:10 – 26:23

Todd Smith

Same is also true of my future self, and if I want to live my life intentionally, I need to be aware that my parents, my parents office client, would be advantageous to yourself.


26:23 – 26:30

Todd Smith

And as soon as you start removing psychology, your motivation is in our approach.


26:31 – 26:39

Todd Smith

Try to avoid what you don’t want to clarify what you want, and you want to spend your time and energy.


26:42 – 26:46

Todd Smith

More you start to see more and more of this great quote from Robert Kiyosaki.


26:46 – 26:48

Todd Smith

He said, intelligence is the ability to make a distinction.


26:49 – 26:54

Todd Smith

Distinctions means you’re clearer and clearer and more specific rather than trying to avoid what You don’t want.


26:54 – 26:58

Todd Smith

You to clarify what you do want, your feedback.


26:58 – 27:00

Todd Smith

And you start to develop clearer and clearer perspective.


27:01 – 27:13

Todd Smith

And you start to see distinctions, where someone sees one frame, You see a more clear expertise and perspective, and you can then move that forward approach What you want, Rather than trying to avoid what.


27:13 – 27:14

Todd Smith

You don’t clarify what.


27:14 – 27:21

Todd Smith

You want to really educate yourself on that, and you’ll start to become actively prepare right now, for your future stuff.


27:22 – 27:27

Todd Smith

On this page, you can get access to that features A series like this.


27:27 – 27:33

Todd Smith

Please apply these concepts, become less intentionally blind, you ultimately want, apply strategic.


27:35 – 27:37

Todd Smith

Attention towards what your future self will.


27:40 – 27:43

Todd Smith

Recognize, and appreciate the growth that you see it.


27:47 – 27:51

Todd Smith

So, yeah, that’s a little bit different than what we normally talk about.


27:51 – 27:57

Todd Smith

I think, How does this tie into a financial planner and a financial planning firm?


27:58 – 28:11

Todd Smith

Um, it seems a little bit out there, I guess, to some people, but our real mission is to maximize our best clients potential, and that’s what their finances in their life.


28:12 – 28:21

Todd Smith

And it ties in, in my mind, in terms of blending the psychology and the behavior with the tech, you know, the technical acumen.


28:21 – 28:27

Todd Smith

So, that was kinda my, my theme today, so I think I’ll send this out to people to review.


28:27 – 28:28

Todd Smith

I’ll send a link out.


28:29 – 28:40

Todd Smith

You’ll see more blog posts coming in the future in terms of behavioral finance, because I think it all comes down to, you know, we can teach people all the technical knowledge.


28:40 – 29:01

Todd Smith

We can execute all the tactical skills that we have over, gosh, combined everybody, me and my staff is over 60 years, Um, but until we master our own behavior and kinda what’s between the ears, that makes it very difficult to execute the technical.


29:01 – 29:17

Todd Smith

So, know, we frequently, I act as coaches, and we act as people, kind of as a filter for what’s good information, bad information, and help people navigate this informational age that we’re in now.


29:17 – 29:22

Todd Smith

So, it kind of goes, It kind of relates in many different ways.


29:22 – 29:23

Todd Smith

So, I’ll send this out.


29:23 – 29:27

Todd Smith

Um, anybody have any thoughts or questions?


29:27 – 29:32

Todd Smith

I did have a few recent questions, but I think I’ll save it into next time.


29:33 – 29:35

Todd Smith

We have a little bit more participation.


29:35 – 29:45

Todd Smith

I won’t bore you with the technical, but I think my goal for these happy hours and coffee chats will probably be, um, to kinda alternate.


29:45 – 29:45

Todd Smith

We’ll do some.


29:45 – 29:49

Todd Smith

That’s a little bit more technical summits, maybe a little bit more thought provoking.


29:50 – 29:59

Todd Smith

More on the behavioral side, I think by blending it, we can make people a little bit more successful in a lot of different ways.


30:00 – 30:07

Todd Smith

Going forward, we will have a technical webinar coming up, Probably next month.


30:07 – 30:08

Todd Smith

That will be on tax planning.


30:09 – 30:13

Todd Smith

So that will be a content driven program.


30:13 – 30:15

Todd Smith

Frank will be helping me with that.


30:17 – 30:33

Todd Smith

Followed in the future quarters, it will probably be something to do with retirement planning, retirement income, distribution stuff, and then risk management after that, kinda following our typical quarterly themes.


30:34 – 30:45

Todd Smith

I mentioned to Rod already, so maybe you heard, we are sending out invites for our midyear reviews, so, you should get an e-mail for that.


30:45 – 30:48

Todd Smith

Just click on that, You can sign-up directly on my calendar.


30:50 – 31:00

Todd Smith

We’re offering them virtual live, so people don’t have to find time to drive into the office and do that.


31:00 – 31:04

Todd Smith

So, hopefully, that’s more convenient for people, but we’d like to hear your feedback on that.


31:04 – 31:23

Todd Smith

I do enjoy face-to-face, but I think it might be more efficient when there’s business at hand to do things virtually, and then save those visits for some of our upcoming events, meeting for lunch, things like that, So, look for that in the near future.


31:24 – 31:31

Todd Smith

Hey, Penni, and I think that’s it for now, a penny that you just login.


31:32 – 31:34

penny

Yeah, I had to figure out how to do it.


31:36 – 31:39

Todd Smith

We were, I was just wrapping up, but, welcome.

31:40 – 31:41
penny

Ok.


31:41 – 31:43

Todd Smith

It’s pretty short.


31:43 – 31:47

Todd Smith

I just play it a video from doctor Benjamin Hearty.


31:47 – 31:48

Todd Smith

I think you would like it.

31:49 – 31:49
penny

Yeah.


31:50 – 31:52

Todd Smith

Are you familiar with him at all?


31:52 – 31:53

Todd Smith

He’s a younger.

31:53 – 31:54
penny

Ah.


31:54 – 31:58

Todd Smith

He’s a younger, newly minted PHD psychologist.


31:59 – 32:03

Todd Smith

He talks about a lot of chasing your future self thing.


32:04 – 32:15

Todd Smith

Specifically, in this particular presentation, I’ll send it to you, just talking about selective ignorance in what we focus on and things like that.


32:15 – 32:16

Todd Smith

So that’s pretty interesting.


32:17 – 32:17

Todd Smith

Hmm.


32:18 – 32:19

penny

Sounds interesting.


32:20 – 32:26

Todd Smith

We have a very light showing here, so I have time to say hi and check in with you.


32:28 – 32:35

penny

Things are pretty good next to Houston for the weekend Yeah, To go out and get in trouble.


32:37 – 32:40

Todd Smith

How hot is it in Arizona as an nineties?


32:41 – 32:45

penny

It’s yes, it’s in the nineties, I can tell …


32:46 – 32:50

penny

Cindi, well, it’s 97.


32:52 – 32:52

Todd Smith

Wow!


32:53 – 32:59

Todd Smith

Yeah, so, I will, I will call you, but I am going to be there at the end of the month for a couple of days.


32:59 – 33:00

Todd Smith

So, I’ll.


33:00 – 33:01

penny

See you.


33:01 – 33:02

penny

Yeah, yeah, I.


33:02 – 33:06

Todd Smith

Think we’ll be able to do that with, can’t remember the tickets.


33:06 – 33:09

Todd Smith

It’s the 22nd, I think I’m coming in.


33:09 – 33:11

Todd Smith

I’ll confirm with you.


33:13 – 33:15

penny

Stellar Phoenix or where you stay.


33:16 – 33:19

Todd Smith

Scottsdale kirin resort.


33:20 – 33:21

penny

Lenders.


33:21 – 33:22

Todd Smith

Yeah.


33:23 – 33:23

Todd Smith

So, here.


33:25 – 33:27

Todd Smith

I guess you answered my question, though.


33:27 – 33:28

Todd Smith

Definitely I have to bring shorts.


33:29 – 33:30

Todd Smith

Yes.

33:31 – 33:32
penny

Yeah!


33:32 – 33:36

penny

I’d love to have you have a few minutes to see our house, if you have time.


33:37 – 33:37

penny

Yeah, I.


33:37 – 33:39

Todd Smith

Should, I think I’m going to try to go a day early.


33:41 – 33:49

Todd Smith

The conference hasn’t started actually kick off a Sunday evening and then it’s Monday, Tuesday, so I hope to be there at a Saturday.

33:50 – 33:50
penny

Ok?


33:51 – 33:52

penny

Yeah, that’s great.


33:52 – 34:00

Todd Smith

Yeah so rather than me ramble, did you have any top of mind questioning about anything or irrigation?


34:00 – 34:00

Todd Smith

I’ve.


34:00 – 34:09

penny

Just been watching all the weird stuff going on with business investments and everything, and just was curious what you had to say about what was going on.


34:11 – 34:11

Todd Smith

Maybe.


34:11 – 34:13

penny

Out of the norm for you?


34:15 – 34:18

penny

Just watching, what’s going on politically?


34:19 – 34:21

penny

What how that’s driving the market?


34:22 – 34:22

penny

Oh, like, good stuff.


34:24 – 34:34

Todd Smith

Yeah, I think it’s top of mind, for a lot of people, what you want to get a little bit more specific for me, then what is there, something concerning you, or are you.


34:35 – 34:38

penny

Just everything’s moving so fast?


34:38 – 34:40

penny

And I notice the market is moving along.


34:42 – 34:45

penny

You just kind of wonder, well, how long is that going to keep going?


34:46 – 34:53

penny

Yeah, And then, what does that mean in terms of, no, where I am in my life, and stuff like that.


34:54 – 35:08

Todd Smith

That’s a good question and that’s something we think about all the time Or overdue for the meeting to, I was just mentioning to everybody that invites are going out for review sessions coming up here this month.


35:09 – 35:16

Todd Smith

Um, yeah, I think it’s a big, it’s a kind of a large conversation to kind of unpack.


35:18 – 35:20

Todd Smith

Here’s what, here’s a simplified version of it.


35:22 – 35:27

Todd Smith

In the coming months and years, the market’s either gonna go up, or is going to go down, then we don’t know.


35:28 – 35:28

Todd Smith

Alright?


35:30 – 35:39

Todd Smith

And we position you, most people, in their portfolios to prepare, um, for the inevitable downturn, right?


35:40 – 35:45

Todd Smith

I don’t think we can ever avoid, this is a little repetitive, because we’ve talked about this, but it’s worth.


35:46 – 35:47

Todd Smith

No, I.


35:47 – 35:49

Todd Smith

It’s worth repeating, I guess.


35:50 – 35:56

Todd Smith

Um, no, we’re not ever trying to avoid the next downturn, because we don’t think it works.


35:57 – 35:58

Todd Smith

What doesn’t work?


35:58 – 36:06

Todd Smith

The data overwhelmingly indicates trying to avoid the next inevitable downturn.


36:08 – 36:10

Todd Smith

Israeli impossible, what would we have?


36:10 – 36:16

Todd Smith

Really two key decisions to make and statistically are going to be wrong.


36:16 – 36:21

Todd Smith

One is wanting to be out of the market when then when to buy back in, right?


36:21 – 36:21

Todd Smith

Now.


36:22 – 36:35

Todd Smith

If you look at the data, and there’s some great tables, I don’t have to send out to, terms of, for example, it shows all the trading days in the 10 year period.


36:36 – 36:44

Todd Smith

And I forget the numbers, but it was something to the tune of 300 or 3000 different trading days, right?


36:45 – 37:02

Todd Smith

And it did, it looked at all the positive days, all the negative age, and what the rates of return, comparing, um, participating in all those versus, if you are able, if you miss the worst days or you miss the best dates.


37:03 – 37:10

Todd Smith

Yeah, It’s amazing when you look at them as numbers, that, let’s just say, hypothetically.


37:10 – 37:12

Todd Smith

Those 3000 trading needs.


37:12 – 37:19

Todd Smith

If he did nothing, depending on how you’re invested in kind of buying a whole, the rate of return was 8%.


37:20 – 37:24

Todd Smith

Well, then, they drill into the data a little bit more with the church in the community.


37:26 – 37:30

Todd Smith

Um, if you missed the worst days.


37:33 – 37:38

Todd Smith

Out of those 3000, your rates of return are marginally better.


37:38 – 37:51

Todd Smith

However, if you miss just the best days, and I think can only came there like 10 days, out of all the 3000, your rate of return was for the neighborhood of two to 3% lower, Then if you get then nothing.


37:52 – 37:55

Todd Smith

So what, the point of this is, is really heard.


37:55 – 37:59

Todd Smith

How do you know, those 3008 a window, really, really?


38:00 – 38:00

Todd Smith

Right.


38:00 – 38:11

Todd Smith

So, so all we know, I guess the point is, we know that chasing or trying to time the market doesn’t work, and I think you know that.


38:11 – 38:11

Todd Smith

Right.

38:11 – 38:12
penny

Yeah.


38:13 – 38:13

Todd Smith

Yeah.


38:13 – 38:16

Todd Smith

And so, number one, we so, we acknowledge that.


38:16 – 38:36

Todd Smith

So then we focus on asset allocation, universal education to make sure that things are positioned in such a way that when that downturn happens, that we are cushioning it to a degree that they were comfortable be it does or derail us, whatever goals are and whatever stage of life work.


38:38 – 38:49

Todd Smith

So, somebody, your circumstances, um, no, we don’t, we certainly wouldn’t put everything in the stock market, right?


38:50 – 39:02

Todd Smith

So, I won’t share with everybody on the line, know what your personal circumstances are, but let’s just say hypothetically, you only have half of your money in the stock market and half elsewhere.


39:02 – 39:04

Todd Smith

That’s, that’s the first step.


39:05 – 39:05

Todd Smith

Right?


39:05 – 39:14

Todd Smith

So when we look at kind of the social political developments out there and markets being over valued.


39:14 – 39:28

Todd Smith

In somewhat schizophrenic in the way that markets keep growing, despite no significant events, your exposure is really only half.


39:28 – 39:29

Todd Smith

So what will we be?


39:31 – 39:45

Todd Smith

Yeah, so we position people in terms of where they are alive for, what, if they need income, what their risk tolerance is, knowing that, as an investor, there’s always going to be downturns interest.


39:46 – 39:53

Todd Smith

No matter of how much exposure you have, then we also allow that.


39:53 – 39:57

Todd Smith

No, I’ve been preparing for the next downturn for quite some time.


39:58 – 39:59

Todd Smith

Now, it’s coming.


39:59 – 40:06

Todd Smith

It’s statistically about going out or four years when the 3, 4, typically, is down here.


40:06 – 40:12

Todd Smith

What we know from history, courses, only histories, that there’s really two things.


40:12 – 40:23

Todd Smith

Is, one, that the typical negative markets are single digit losses, it’s not The O 708 is not the 99, it’s not.


40:23 – 40:27

Todd Smith

The 6, 8 7, which were double double digit negatives.


40:27 – 40:31

Todd Smith

So we typically show a typical negative here.


40:31 – 40:31

Todd Smith

Yeah.


40:33 – 40:38

Todd Smith

For the stock market, Number one is you can do a single digits.


40:39 – 40:40

Todd Smith

Number two.


40:40 – 40:43

Todd Smith

It’s usually pretty short lived and things, you rebound prescriptive.


40:44 – 40:51

Todd Smith

So we always want to prepare for the worst-case scenario where we do have a really traumatic kinda recessionary period.


40:52 – 40:58

Todd Smith

Um, no, but that’s the other reason why we would never have all your money in the stock market.


41:00 – 41:04

Todd Smith

Rambling, a little bit here, might make sense, or what do you know?


41:05 – 41:14

penny

You make it says, It’s just, I think, it’s better not to watch the news these days, but that’s all, just, these bizarre things keep happening.


41:15 – 41:24

penny

There’s nothing to do with America, just pitches watching, kind of how those things are impacting people, things that are happening.


41:24 – 41:25

Todd Smith

Yeah, and that’s exactly.


41:25 – 41:26

penny

That’s it.


41:28 – 41:30

Todd Smith

Yeah, sorry, finish, I cut you off.


41:33 – 41:34

penny

I finished.


41:34 – 41:35

Todd Smith

Ok.


41:35 – 41:45

Todd Smith

So that’s what the Band Hardy kind of connection wants, so he talks about no, being ignorant, intentional ignorance.


41:47 – 41:53

Todd Smith

Potential ignorance, you know, your site psychology background, that’s where he talks about.


41:53 – 42:00

Todd Smith

It’s filtering, Um, news, filtering, things that you’ve allow into your consciousness.


42:01 – 42:02

Todd Smith

And where’s your focus.


42:02 – 42:15

Todd Smith

So it was like a nine minute video, I played in terms of how we choose our focus and what we choose to allow, um, into that, because it affects or ultimate intention.


42:16 – 42:21

Todd Smith

So, you know, this, I’m sure you counsel your own clients on this.


42:21 – 42:25

Todd Smith

If, yeah, Your goal is to be a happy person.


42:26 – 42:40

Todd Smith

Your goal is to reduce anxiety, then you as limit messaging from social media, from Fox News, not to pick on you.


42:40 – 42:44

Todd Smith

Name it from entering into your consciousness, right?


42:44 – 42:45

penny

Yeah, that’s pretty.


42:45 – 42:45

Todd Smith

Much.

42:45 – 42:46
penny

That.

42:46 – 42:46
penny

So.


42:47 – 42:48

Todd Smith

Yes, but.


42:49 – 42:49

penny

We’ll.


42:50 – 42:50

Todd Smith

See.


42:50 – 42:51

penny

That video.


42:52 – 42:54

Todd Smith

I know your partner doesn’t do that as much.

42:56 – 42:57
penny

Yeah.


42:57 – 42:57

Todd Smith

You.

43:00 – 43:00
penny

Know.


43:01 – 43:01

Todd Smith

But.


43:01 – 43:02

penny

He does it differently.


43:03 – 43:04

Todd Smith

I can’t pick on nag.


43:04 – 43:05

Todd Smith

He’s not here, and I’m not.

43:06 – 43:06
penny

Sure.


43:07 – 43:09

Todd Smith

But that was, I did a pretty bad.


43:09 – 43:21

Todd Smith

I’ll admittedly say I did a pretty bad job of trying to tie the psychology into our finances, but my eye opened up kinda this meeting saying, no my opinion.


43:22 – 43:25

Todd Smith

Successful people in my yvan with money.


43:25 – 43:31

Todd Smith

They do a good job of blending the behavior or the mental, the psychology with the technical skills.


43:32 – 43:37

Todd Smith

Then as your advocate and your coach, your advisor, it’s our job.


43:37 – 43:47

Todd Smith

I try to do both infrequently, the proverbial handholding, Israelis’, making sure that the behavior follows the rest right then.


43:48 – 43:56

Todd Smith

So it ties into the pandemic, monetizing the news and it ties into the messaging that we’re all bombardment every day.


43:57 – 44:03

Todd Smith

It strays us from our actual intention around money or financing or live in.


44:03 – 44:09

Todd Smith

That’s why we’re frequently having for 20 years, I’ve had the same conversation about money and investing.


44:09 – 44:12

Todd Smith

It hasn’t changed, the world keeps changing.


44:13 – 44:14

Todd Smith

Um.


44:14 – 44:19

Todd Smith

But really the investment methodology, philosophy and what works hasn’t changed.


44:20 – 44:27

Todd Smith

And in every year you’ve heard me say this every year is going to be a crisis of some sort.


44:28 – 44:30

Todd Smith

That may not be the extent of a pandemic.


44:30 – 44:40

Todd Smith

It may not be the housing crisis but every year, whether it’s the media trumping it up or something else, there’s no, if there’s going to be a crisis.


44:40 – 44:48

Todd Smith

You know, as China trade wars before, who knows what, 20, 21 and 22 full brain.


44:49 – 44:51

Todd Smith

But it really doesn’t change how we invest.


44:51 – 44:55

Todd Smith

The only thing that changes is how we react to it and how we behave.


44:56 – 45:09

Todd Smith

Um, so to give you an example, I spent a fair amount of time last year about this time last year telling you a couple of people not to do anything radically with their investments.


45:09 – 45:13

Todd Smith

Because of the onset of the pandemic there was a significant drop.


45:15 – 45:24

Todd Smith

So, um, we never radically change any of our investments during that whole period, no, man who was caring for everybody.


45:26 – 45:33

Todd Smith

I maybe had one, The only one client a lot actually moved the cache.


45:34 – 45:39

Todd Smith

He’s actually regretting it at this point, because he left a lot on the table.


45:39 – 45:42

Todd Smith

So that was more of an emotional behavioral.


45:42 – 45:48

Todd Smith

So, um, it’s just a matter of how we, what we focus on.


45:50 – 45:55

Todd Smith

Have our goals change, have her as her life changed.


45:55 – 45:59

Todd Smith

If not, then we don’t really need to deviate from all we’re doing.


45:59 – 46:03

Todd Smith

So no whatever’s happening in the white house.


46:04 – 46:16

Todd Smith

Whatever’s happening with the, he, the new spending bills, potentially high taxes, a lot of things are, there probably, going to happen or.


46:16 – 46:18

Todd Smith

Could happen, the loss of capital gains.


46:19 – 46:20

Todd Smith

Who knows?


46:20 – 46:22

Todd Smith

The state tax repeal?


46:22 – 46:26

Todd Smith

Lot of things are speculative right now, but look like some will go, there’s some won’t.


46:27 – 46:36

Todd Smith

Um, I think it doesn’t really change what we do, shouldn’t change what your approach is pyramid.


46:38 – 46:38

penny

Gotcha.


46:41 – 46:43

Todd Smith

Easier, easier said than done, right?


46:45 – 46:50

Todd Smith

What is, what is your intuition, What is your intuition tell me to do something?


46:50 – 46:54

Todd Smith

When you hear some of this stuff, I mean, where does your head kinda go?


46:55 – 47:02

penny

Uh, it’s like, there’s just so much, Mike.


47:02 – 47:04

penny

My gut says just don’t do anything.


47:05 – 47:14

penny

Because it just, there’s just too much and you just don’t know what’s going to happen next in terms of, but who’s going to come up with what next?


47:15 – 47:16

Todd Smith

Yeah, it is.


47:18 – 47:18

Todd Smith

Yeah.


47:19 – 47:31

Todd Smith

Now, the only thing I can say, being a history known, it’s kind of a student of the markets, then there were a lot of cycles, study Martin, no market psychos well before me.


47:32 – 47:33

Todd Smith

The early 19 hundreds.


47:34 – 47:41

Todd Smith

All I can say is that without having a crystal ball is that it always looks and feels different.


47:43 – 47:52

Todd Smith

Then, some instances are scarier than others, But the results, four, the end result is usually the same.


47:53 – 47:54

Todd Smith

Certainly.


47:54 – 48:00

penny

See the state courses because 2008, as you know, was sort of a disaster for us.

48:01 – 48:01
penny

So.


48:02 – 48:02

Todd Smith

Right?


48:03 – 48:04

penny

That’s sort of in the back of my mind.


48:07 – 48:21

Todd Smith

Right, and when we talk one-on-one, I’ll go through what that looks like, but we spend a lot of time giving you the giving people the metric saying, based on how we have your position.

48:22 – 48:22
penny

If.


48:22 – 48:26

Todd Smith

2008 were to repeat itself, this is where the impact could be.

48:28 – 48:28
penny

And.


48:28 – 48:31

Todd Smith

We have the independent data to support that.


48:31 – 48:35

Todd Smith

So, oh, I can visually show you then give you the numbers behind it.


48:35 – 48:37

Todd Smith

So that’s important.


48:38 – 48:39

Todd Smith

No, man.


48:41 – 48:45

Todd Smith

The other thing to keep in mind is what, how you were invested, then.

48:46 – 48:46
penny

What.


48:46 – 48:48

Todd Smith

Your reaction was, then.


48:50 – 49:00

Todd Smith

Right, So, I know some people, for instance, even before hundred and eight, now I have other people in the same situation that went through the dot com era.


49:02 – 49:19

Todd Smith

And so I’m talking about, you know, 99, 2000, if you remember the Internet, we had all these companies with zero earnings are trading at multiples of 100 times $100.


49:19 – 49:19

Todd Smith

A, share more.


49:19 – 49:21

Todd Smith

But they never had earned a setup.


49:22 – 49:30

Todd Smith

So, you had this huge bubble fall by, know, that a really bad period, you have lots of people.


49:31 – 49:32

Todd Smith

I’ve talked to several over the years.


49:34 – 49:35

Todd Smith

Like I really burn.


49:36 – 49:41

Todd Smith

And the problem was: use twofold typically was one.


49:41 – 49:44

Todd Smith

They’re overly concentrated, not invested appropriately.


49:44 – 49:46

Todd Smith

Um, I tell people all the time.


49:46 – 49:54

Todd Smith

I never STOL fold or recommended A, the tech fun, never did that.


49:54 – 49:55

Todd Smith

I never do now.


49:55 – 50:06

Todd Smith

I never recommend a sector specific fund, more investment, but they’re typically overly concentrated in that particular area.


50:06 – 50:14

Todd Smith

Then, two, you probably get scared and they solar at the bottom or near the bottom, and then they never get back in.


50:15 – 50:30

Todd Smith

So, that replicated itself in a way, no, people were not invested appropriately prior to that event, Then maybe did not make the best decisions, or didn’t have the best advice through that event.


50:32 – 50:35

Todd Smith

Yeah, it could have been a significantly bad situation.


50:36 – 50:40

Todd Smith

Recall, or if you shared what exactly happened with you during that time.


50:41 – 50:42

Todd Smith

That’s what I’ve seen.


50:42 – 50:56

Todd Smith

And then we had lots of investors road through age five herd, Um, but frequently, the, the non action is usually the best action.


50:57 – 51:01

Todd Smith

Boom, I’m waiting for, you know, well this time is different.


51:01 – 51:02

Todd Smith

Right.


51:03 – 51:06

Todd Smith

Which would be the next callback which could be tomorrow?


51:06 – 51:07

Todd Smith

Or contain the heater?


51:07 – 51:07

Todd Smith

Or who knows?


51:09 – 51:12

Todd Smith

A history kinda prevails in the sense at all the cycles.


51:13 – 51:19

Todd Smith

Um, had you done nothing is probably better than trying to do something.


51:21 – 51:27

Todd Smith

I feel like you, if I remember correctly, may have sold at some point maybe on the way that.


51:28 – 51:37

penny

Look, the deal was, we had a business, if you’ll remember ahead running at the same time that everything was violent.


51:37 – 51:40

penny

So, which affects the business.


51:40 – 51:41

penny

So, you put it all together.


51:41 – 51:44

penny

Sort of, was it perfect storm?


51:45 – 51:45

Todd Smith

Yeah.


51:47 – 51:52

Todd Smith

But if you focus just on the investments, you remember what happened, exactly, what you did.


51:52 – 51:53

penny

There.


51:53 – 51:58

penny

Well, we had to, it fell considerably.


51:58 – 52:01

penny

And then we had to use some of that money because we had to.


52:03 – 52:05

penny

Some of it because of the business.


52:06 – 52:07

penny

That’s what I remember.


52:08 – 52:10

Todd Smith

That’s, why remember that.


52:10 – 52:12

penny

So we couldn’t, we couldn’t just sit with it.


52:13 – 52:13

penny

That was.


52:16 – 52:29

Todd Smith

So, yeah, I mean, that’s, that’s something that you definitely want to continue to revisit, we develop a portfolio, or somebody is always based on age, huh?


52:29 – 52:36

Todd Smith

Tolerance of risk, how quickly do you need the money, what type of liquidity do you need, that all factors in doing.


52:36 – 52:41

Todd Smith

Maybe at the time, there was no way to her senior year would be an actual quiddity from the, for the business.


52:41 – 52:58

Todd Smith

That was problematic, but where you are today, that really factored into our discussions, um, so now that’s something that we try to revisit every year, right, like we always check in, say Penny.


52:58 – 53:13

Todd Smith

Remember when we position this, we should do the worst-case scenario, Know, this particular mixture that we have you, and you know, away, would have been down 25%, which is the next dollars to you feel about that.


53:14 – 53:16

Todd Smith

Well, I don’t feel very good about it.


53:16 – 53:28

Todd Smith

But I’m OK because I knew I needed it, or no, I don’t feel very good about it because I needed five years or a year, or whatever Or, there I need or not, I don’t feel good about it.


53:28 – 53:32

Todd Smith

And then we have to refine things based on those type of conversations.


53:32 – 53:40

Todd Smith

No, then that can change per person by the year, mid year, and that’s why we continually check in.


53:41 – 53:43

Todd Smith

Um, so.


53:44 – 53:46

Todd Smith

Yeah, I think you and I will do that.


53:46 – 53:47

Todd Smith

Yeah.


53:47 – 54:02

Todd Smith

The other thing that I’m bringing up to a lot of people knew, and I talked about this news, know, the difference between systematic risk and unsystematic risk, Graham, if you remember, systematic risk, is really the risk of just being invested.


54:03 – 54:09

Todd Smith

And unsystematic risk is really the risks that you can diversify from.


54:10 – 54:21

Todd Smith

So as an investor, you’re going to be subject to the economic cycles, you can’t really diversify away from if the economy falls.


54:22 – 54:24

Todd Smith

So to do your investments, typically.


54:25 – 54:33

Todd Smith

Um, unsystematic risk is, think of it as investing all in one stock if that company goes away.


54:34 – 54:36

Todd Smith

So does your money so you can diversify from that.


54:38 – 54:42

Todd Smith

So we get in this conundrum where it’s like, OK, I knew I should be investing.


54:44 – 54:45

Todd Smith

I know.


54:45 – 54:49

Todd Smith

It probably shouldn’t be sitting in cash that pays next to nothing, right?


54:49 – 54:56

Todd Smith

Um, but I’m still kind of worried about the fluctuation in the risk by being invested.


54:57 – 55:04

Todd Smith

So we do an awful lot about diversifying not having too much in the stock market and so on and so forth.


55:06 – 55:13

Todd Smith

I can slice and dice for some point, um, but there’s really no in-between under those in between there’s.


55:14 – 55:34

Todd Smith

So, what I’ve talked to you about another people is, is using some kind of fixed guaranteed component to fill that in-between space, and historically, it’s not something that I’ve been to Canada because they’ve been over marketed.


55:34 – 55:37

Todd Smith

They’ve been marketed in inappropriately.


55:37 – 55:41

Todd Smith

And frankly, it’s mostly salespeople looking for a high commission.


55:42 – 55:47

Todd Smith

But there is no scope of retirement planning and creating stability yet productivity.


55:48 – 56:00

Todd Smith

I think that the fixed income type product like an annuity, it has its place Because that’s the in-between, it’s something that’s guaranteed by a third party.


56:00 – 56:03

Todd Smith

You’re offloading the risks now instead of you as an investor.


56:04 – 56:05

Todd Smith

That’s every party.


56:06 – 56:16

Todd Smith

For the return of a guaranteed, plus, participation, interest, that’s gonna be typically better than actually bonds.


56:18 – 56:21

Todd Smith

Oh, so that’s, that’s how you can reconcile it.


56:21 – 56:24

Todd Smith

So then you start kind of cobbling together a few different buckets.


56:24 – 56:32

Todd Smith

You always have your caches schmoozing, kind of your longer term bucket, where it’s going to be a little bit more growth oriented.


56:33 – 56:44

Todd Smith

That’s going to be subject to fluctuation, what’s going on the White House and the economy And then you kinda backfill that with a medium bucket that has no risk associated with anything that’s going through.


56:46 – 56:52

Todd Smith

The one where to take money and put it in that type of contract, that’s insulated from, whatever happens economically.


56:53 – 57:01

Todd Smith

The only risk really is between you and that insurance company, and their contractual obligation to you.


57:03 – 57:07

Todd Smith

I think that’s a way, two, do a couple of things, really.


57:07 – 57:16

Todd Smith

It’s one, to get some productive return without risks, and also give people a little bit more peace of mind.


57:16 – 57:22

Todd Smith

Knowing that I have some mercury risk going on for longer term growth and higher eating up.


57:22 – 57:24

Todd Smith

I also have some really save plenty.


57:25 – 57:29

Todd Smith

Retirement becomes more and more important, kinda have that element.


57:31 – 57:32

Todd Smith

You remember that?


57:32 – 57:32

Todd Smith

Yeah?


57:40 – 57:43

Todd Smith

I joke that I have the case of the repeats.


57:43 – 57:44

Todd Smith

I repeat myself.


57:44 – 57:46

Todd Smith

A lot, And some people find that people.


57:48 – 57:48

penny

Like me.


57:49 – 57:52

Todd Smith

Well, I have a lot of conversations with people.


57:52 – 57:54

Todd Smith

They’re out, as you can imagine in the week.


57:54 – 57:58

Todd Smith

But what I was getting at is, I tend to repeat myself over the years.


57:59 – 58:03

Todd Smith

And some people will find that comforting, some people will find it boring.


58:05 – 58:17

Todd Smith

We don’t sway easy, easily from the advice that we give, now it works, and for hard, hard to move from that, which doesn’t mean that were inflexible, just cautious.


58:19 – 58:21

Todd Smith

Where would go with things?


58:21 – 58:21

Todd Smith

And that’s a.


58:21 – 58:22

penny

Good thing for me.


58:24 – 58:25

Todd Smith

Everybody is different.


58:25 – 58:28

Todd Smith

But, so, that’s how I manage my repeated wish.


58:29 – 58:50

Todd Smith

So the other point to that, that I’ll remind you when you compare two portfolios, typically when you’re looking at let me backtrack, and the name of the game in retirement really is to make sure that you have a lifetime of income you on the row, right, So that you can maintain your independence and stuff for as long as possible.


58:51 – 58:57

Todd Smith

So in order to do that, you need to cobble together social security and pensions, you may have in any your assets, right?


58:58 – 59:03

Todd Smith

So, if you’re looking at just your assets, a lot of research will indicate that.


59:03 – 59:10

Todd Smith

If you compare one that’s all market based and one that has a little bit more of a guaranteed component to it.


59:11 – 59:18

Todd Smith

You get some longevity, security, some kind of longevity, insurance, by one, with that, kind of guaranteed component.


59:19 – 59:32

Todd Smith

Now, when I put everything in a guaranteed component, no, I just think it’s another kind of new entity that everyone at certain stages of their lives should do kind of consider.


59:32 – 59:35

Todd Smith

So, on the one hand, it is a comfort thing.


59:36 – 59:56

Todd Smith

On the other hand, there are some mathematics, You know, there’s an equation behind it that also makes it work in terms of, know, some people were looking in the 30 plus year retirement show that longevity insurance really adds value.


59:58 – 01:00:08

Todd Smith

So more and more, despite what I’ve seen is bad annuities out there and bad advice, high commission, expensive products.


01:00:08 – 01:00:12

Todd Smith

There’s a few of them out there that, I think, make sense in this context.

01:00:14 – 01:00:14
penny

Ok.


01:00:15 – 01:00:21

Todd Smith

The other and the other thing about an annuity and not only from an investment standpoint is it, you knew it ties it.


01:00:21 – 01:00:36

Todd Smith

So, you can, you know, there’s some good evidence out there that says you should, the new, it ties your fixed or your control, basic income needs, buy something like that and not subject to the risk.


01:00:36 – 01:00:40

Todd Smith

So, here, far as praise, we have a lot of people that have pensions.


01:00:42 – 01:00:46

Todd Smith

So, their pensions can cover a lot of other fixed basic costs.


01:00:46 – 01:00:52

Todd Smith

Then, they can invest the rest in something a little bit more risky or subject to the fluctuation.


01:00:53 – 01:01:00

Todd Smith

Or more discretionary spending, for those, don’t have a pension sometime, should make sense to create your own private ventures.


01:01:01 – 01:01:09

Todd Smith

No, where you say, OK, I spin, no baseline baseline, not with any URL travel or, you know, leading outlets.


01:01:09 – 01:01:11

Todd Smith

I spend $4000 a year.

01:01:11 – 01:01:11
Todd Smith



01:01:14 – 01:01:20

Todd Smith

So that I know, regardless of what happens in the world cover, That’s true.


01:01:20 – 01:01:30

Todd Smith

Um, then you invest anything over and above that to provide more discretionary spending and your stuff to go on to kids rears.


01:01:31 – 01:01:31

Todd Smith

Grooming.

01:01:32 – 01:01:32
penny

Good.


01:01:33 – 01:01:35

Todd Smith

Finally, bring up all those speakers.


01:01:36 – 01:01:44

Todd Smith

No, Because it’s important, and, you know, maybe investment risk, depending where somebody is in their life.


01:01:46 – 01:01:48

Todd Smith

I’m comfortable with it for most of our clients.


01:01:49 – 01:01:55

Todd Smith

That doesn’t mean that there might be compelling to consider taking some risk off the table.

01:01:56 – 01:01:57
penny

Ok.


01:01:59 – 01:02:04

Todd Smith

So, I guess the moral of this pen is I don’t speculate on what Biden is going to do.


01:02:07 – 01:02:07

Todd Smith

Are doing.


01:02:10 – 01:02:12

penny

Is your experience here?


01:02:14 – 01:02:20

Todd Smith

Well, it doesn’t change the investments, and nothing is set in stone in terms of what’s gonna happen.

01:02:21 – 01:02:21
penny

Yeah.


01:02:22 – 01:02:33

Todd Smith

Um, so, typically, if you look at the history in different parties over the years, the economic impact from the democratic side has been lessened.


01:02:35 – 01:02:38

Todd Smith

Then I don’t know.


01:02:38 – 01:02:50

Todd Smith

I think it depends on, I don’t know what’s going to happen, but, know, some would argue that even he is appealing to the people they get him elected newsfeeds closer.


01:02:51 – 01:02:55

Todd Smith

Is moving more towards center, will move, towards Center.


01:02:57 – 01:02:58

Todd Smith

Movies at the beginning.

01:03:01 – 01:03:02
penny

We’ll see.


01:03:03 – 01:03:08

Todd Smith

What happens for you from a tax, but a lot of us are going to be taxed stuff.

01:03:08 – 01:03:09
Todd Smith

Right?

01:03:09 – 01:03:10
penny

Hmm.


01:03:11 – 01:03:20

Todd Smith

So, one thing that we can focus on for people to sign, this is really how we invest, but it’s how we structure your investments in different types of accounts.


01:03:22 – 01:03:25

Todd Smith

Try to mitigate that impact, yeah.


01:03:29 – 01:03:31

Todd Smith

But at the end of the day, you’re still an investor.


01:03:33 – 01:03:36

Todd Smith

If you’re an investor, you have to believe in …


01:03:36 – 01:03:38

Todd Smith

Thing to believe in capitalism.

01:03:39 – 01:03:40
Todd Smith

Yeah.


01:03:40 – 01:03:47

Todd Smith

And leave, you know, you’re investing in the best companies in the world, and they’ll continue to innovate and continue to be profitable.


01:03:47 – 01:03:48

Todd Smith

No matter what happens.


01:03:49 – 01:04:10

Todd Smith

She’s venture two, us as humans as a society, will and ultimately do the right thing, Avoid that Cliff, whatever, Cliff that may be, regardless of party, one, Clift, be spending the Social Security and the Title VI program issues.


01:04:10 – 01:04:14

Todd Smith

Things like that, they will figure out at some point, you don’t have faith in either.


01:04:14 – 01:04:16

Todd Smith

Those are both of those, then, yeah.


01:04:16 – 01:04:17

Todd Smith

Nobody should.


01:04:19 – 01:04:22

penny

I just can’t figure out where all the money’s coming from, but that’s OK.


01:04:23 – 01:04:24

Todd Smith

Coming from the money machine.


01:04:25 – 01:04:26

penny

Yeah, let me machine.

01:04:28 – 01:04:29
penny

I’m like.


01:04:29 – 01:04:31

Todd Smith

Yeah, exactly.


01:04:31 – 01:04:35

Todd Smith

So now I’m with you, right, so all this to be said I share the same concerns as.


01:04:35 – 01:04:37

Todd Smith

Well, hmm.


01:04:40 – 01:04:43

Todd Smith

What is the alternative from an investment standpoint?


01:04:43 – 01:04:54

Todd Smith

Yeah, um, no, I think if you’re invested in it, it’s a myriad of different areas which we are, um, hedging.


01:04:54 – 01:05:02

Todd Smith

Now we’re gonna go into a high inflationary period or not Hmm, no hedging at the best we can.


01:05:03 – 01:05:09

Todd Smith

Um, the only alternative is not to invest, and I don’t think that’s a very good solution, either.


01:05:11 – 01:05:12

penny

Not right now.


01:05:14 – 01:05:17

Todd Smith

So, it’s, it’s the boring, stay the course.


01:05:17 – 01:05:20

Todd Smith

No, but re-evaluate how much risk you’re taking.


01:05:21 – 01:05:28

Todd Smith

And re-evaluating, what the, the worst-case scenario mathematically might be.


01:05:31 – 01:05:34

Todd Smith

The reality is, the 5050 mark that I told you.


01:05:35 – 01:05:47

Todd Smith

You know, 50% in the stock market, 50% elsewhere, still wanna know 708 scenario, which you might still see, again in your lifetime, maybe once, maybe not.


01:05:47 – 01:05:51

Todd Smith

But we want to prepare for that, is still like I needed a unit.


01:05:51 – 01:05:57

Todd Smith

I said it was an illustration, is no, 20, 25% potential downturn in the year.


01:05:59 – 01:06:07

Todd Smith

And so, you need to decide, I, stomach that one and number two, my tapping into it to save time, and that’s where it becomes problematic.


01:06:09 – 01:06:10

penny

Yeah, that’s where it was.


01:06:11 – 01:06:15

Todd Smith

Right, for you, I don’t know that you’ll be tapping into it.


01:06:15 – 01:06:22

Todd Smith

Maye is the masonry and will now just in the event I am tapping into it.


01:06:23 – 01:06:24

Todd Smith

I don’t want that.


01:06:24 – 01:06:28

Todd Smith

Even though the worst-case scenario may never happen, I would rather not take that chance.


01:06:28 – 01:06:30

Todd Smith

So let’s dial it down even more.


01:06:30 – 01:06:37

Todd Smith

So, for some, are comfortable knowing that you’re gonna give up on the upside, the returns.


01:06:37 – 01:06:38

Todd Smith

And that’s OK.


01:06:38 – 01:06:45

Todd Smith

You get to a point in life where the rate of return doesn’t matter as much as the asif texture.


01:06:47 – 01:06:49

Todd Smith

Um, how do you, how do you reconcile that?


01:06:49 – 01:06:50

Todd Smith

And how do you get the balance?


01:06:50 – 01:06:52

Todd Smith

Where it fits for you and your family?


01:06:56 – 01:06:58

penny

They get rid of two horses.


01:07:02 – 01:07:05

Todd Smith

Somebody, how many, did you bring them down there?

01:07:06 – 01:07:06
penny

Two.


01:07:07 – 01:07:07

Todd Smith

You’re still.


01:07:08 – 01:07:09

penny

Waiting for opting.


01:07:09 – 01:07:11

penny

You need to take them.


01:07:13 – 01:07:14

Todd Smith

I don’t think there were chairs suburbia.

01:07:14 – 01:07:15
Todd Smith

But.

01:07:16 – 01:07:16
penny

Yes.


01:07:18 – 01:07:22

Todd Smith

Just say, hey, cause I can’t imagine what does it sounds, crazy.


01:07:22 – 01:07:23

penny

I don’t know.


01:07:23 – 01:07:24

penny

But they’re boarded.


01:07:24 – 01:07:25

penny

That’s the browser.


01:07:29 – 01:07:38

Todd Smith

Do I know that it was building a facility in This is from up here, he’s building of training that hospital right there in Scottsdale.

01:07:38 – 01:07:39
penny

Yeah.


01:07:40 – 01:07:40

Todd Smith

We’ll have to.


01:07:41 – 01:07:43

Todd Smith

I started Dimension kid.


01:07:43 – 01:07:43

Todd Smith

You want.


01:07:43 – 01:07:46

penny

Them to free horses that are now.


01:07:46 – 01:07:50

Todd Smith

I know they train horses and they do all sorts of things on a bunch of versus.

01:07:51 – 01:07:52
penny

Hmm, I.


01:07:52 – 01:07:55

Todd Smith

Started to talk about kid and then I realize, I don’t even know.


01:07:55 – 01:07:57

Todd Smith

I know, I don’t know who she works with.


01:07:59 – 01:08:04

Todd Smith

Spite about, I’m like, Is like English, Western, but does it really mean?


01:08:06 – 01:08:07

penny

Raining training.


01:08:07 – 01:08:08

Todd Smith

Branding, training?

01:08:09 – 01:08:09
penny

Yes.


01:08:10 – 01:08:11

penny

Quarter horses.

01:08:11 – 01:08:12
Todd Smith

Yeah.


01:08:14 – 01:08:15

penny

This great being stable.


01:08:16 – 01:08:18

Todd Smith

Wears off of.


01:08:18 – 01:08:22

penny

Hours a day, 5.5 days a week.


01:08:22 – 01:08:24

Todd Smith

Boom, four hours.


01:08:25 – 01:08:26

penny

Never see her.


01:08:28 – 01:08:32

Todd Smith

So she’s still thinking of a career changer, she’s taking a minute.

01:08:33 – 01:08:34
penny

Wow.


01:08:34 – 01:08:51

penny

It’s sort of evolving some interesting things of where she’s at right now, is that, um, she said some opportunities are kind of, I think, are, it would still be in the horse world, but sort of she’s learning a lot about breeding.

01:08:51 – 01:08:52
Todd Smith

Mm.


01:08:53 – 01:08:54

penny

Into things like that.

01:08:54 – 01:08:55
penny

So.

01:08:56 – 01:08:56
Todd Smith

Sure.


01:08:56 – 01:09:02

penny

Then they like where they like, or where she’s working, so, I don’t know what that will mean or not.

01:09:03 – 01:09:03
Todd Smith

Which.


01:09:03 – 01:09:07

penny

Is not moving toward anything else, that’s all I can say right now.

01:09:07 – 01:09:07
penny

Yeah.

01:09:08 – 01:09:08
Todd Smith

Yeah.


01:09:10 – 01:09:11

Todd Smith

The holding pattern of storage.


01:09:11 – 01:09:15

penny

Yes, yeah, that’s the deal with that.


01:09:17 – 01:09:19

Todd Smith

Ok, both hardcore.


01:09:20 – 01:09:22

penny

Look forward to seeing you and you Dan.


01:09:22 – 01:09:24

Todd Smith

Yeah, let’s try it.


01:09:24 – 01:09:33

Todd Smith

Maybe Kentucky this weekend or simply keeping my firm dates, what, maybe 40 minutes, half an hour from there.

01:09:34 – 01:09:35
penny

From Scott?


01:09:35 – 01:09:36

penny

From Carolyn?


01:09:37 – 01:09:39

penny

Him, about 35 minutes.

01:09:39 – 01:09:40
penny

30 minutes.


01:09:41 – 01:09:41

Todd Smith

That’s one.


01:09:41 – 01:09:44

penny

Of my favorite places right now, so I like to shop.

01:09:45 – 01:09:45
penny

All.

01:09:45 – 01:09:45
Todd Smith

Right.


01:09:46 – 01:09:47

penny

Yeah, it’s all up in here.


01:09:49 – 01:09:50

Todd Smith

Evan, I don’t know that.


01:09:50 – 01:09:52

Todd Smith

I remember it if it was there when I was there.


01:09:52 – 01:09:55

penny

I bet I bet it wasn’t.

01:09:57 – 01:09:57
Todd Smith

Yes.


01:09:57 – 01:09:58

penny

It’s no worse.


01:10:00 – 01:10:01

penny

It’s, it’s very numerous.


01:10:01 – 01:10:04

penny

It’s not that far south of the 101 in the north.

01:10:05 – 01:10:06
Todd Smith

Yes.


01:10:07 – 01:10:09

penny

You’re only about 10 minutes rootkit.


01:10:10 – 01:10:13

Todd Smith

I’m looking at the Westin Carolyn Rose Orange Bar.


01:10:15 – 01:10:19

penny

It’s pretty, it’s kind of a upscaled, little shopping area.

01:10:19 – 01:10:20
penny

Hotels.


01:10:21 – 01:10:26

Todd Smith

Think some of it may have in there might have been the kind of the infancy when I left.


01:10:26 – 01:10:29

penny

Yeah, that’s right on Scottsdale Road.


01:10:30 – 01:10:33

Todd Smith

Ok, it’d be great to get to a few.


01:10:33 – 01:10:34

Todd Smith

Maybe you guys can.

01:10:35 – 01:10:35
penny

Work with.

01:10:37 – 01:10:37
Todd Smith

Deaf.


01:10:38 – 01:10:39

penny

If she ever gets off work.


01:10:40 – 01:10:44

Todd Smith

Ok, I don’t know that I have a car yet, but we’ll figure it out.


01:10:46 – 01:10:50

Todd Smith

I probably need, I’ll be flying into the air, Sky Harbor.


01:10:51 – 01:10:55

Todd Smith

Yeah, it’s kind of short notice, I’m still working out the details.


01:10:56 – 01:10:58

Todd Smith

Yeah, let’s touch.


01:10:58 – 01:11:01

Todd Smith

Base union will affirm that up and see.


01:11:01 – 01:11:07

penny

Ok, best of my family, your family, Jessica’s, Karen, it’s.


01:11:07 – 01:11:09

Todd Smith

His birthday so I’m gonna go.


01:11:09 – 01:11:11

Todd Smith

But Cook Lasagna his favorite meal.


01:11:11 – 01:11:13

penny

We’ll say happy birthday to it.


01:11:14 – 01:11:22

Todd Smith

Well, before I sign off, did you address how your insurance will talk more about anything else top of mind?

01:11:23 – 01:11:23
penny

Johanna.


01:11:24 – 01:11:26

penny

I think that’s pretty good for now.

01:11:26 – 01:11:28
penny

Ok, all.

01:11:28 – 01:11:28
Todd Smith

Right.

01:11:29 – 01:11:29
penny

I.


01:11:30 – 01:11:32

Todd Smith

Guess that’s it everybody.


01:11:32 – 01:11:35

Todd Smith

Anybody else have any questions before we sign out?


01:11:37 – 01:11:39

Todd Smith

Broad area and twice.


01:11:39 – 01:11:42

Todd Smith

So hopefully, here, here is.


01:11:43 – 01:11:43

[speaker unknown]

I’m here.


01:11:44 – 01:11:45

Todd Smith

You’re still there.


01:11:45 – 01:11:47

Todd Smith

I thought Maybe you would elect you almost to Denver.


01:11:49 – 01:11:50

[speaker unknown]

We’re in the two lights.


01:11:51 – 01:11:54

Todd Smith

Ok, OK, did you have any questions or thoughts before I sign off?


01:11:55 – 01:11:56

[speaker unknown]

Now, I think I’m good, Thank you.


01:11:57 – 01:11:58

Todd Smith

Ok, we’ll talk soon.


01:11:59 – 01:11:59

[speaker unknown]

Yeah.


01:12:00 – 01:12:06

Todd Smith

This is somewhat of a fragmented presentation, says what happens when nobody really shows up, I just talk.


01:12:08 – 01:12:11

Todd Smith

I hope somebody get something out of it.


01:12:12 – 01:12:22

Todd Smith

Will be here next month for the same format, and as I mentioned, we’ll have a webinar that’s more content driven, also coming up that will consistent with our tax planning theme.


01:12:24 – 01:12:34

Todd Smith

Other than that, send us e-mails, give us a call If you need anything, then also sign up for our midyear Review, so that we can be one of your accounts.


01:12:36 – 01:12:36

Todd Smith

Oh, that’s right.


01:12:38 – 01:12:39

Todd Smith

That is all.


01:12:39 – 01:12:39

Todd Smith

Take care.


01:12:39 – 01:12:42

Todd Smith

Everybody, Have a great night, and we will talk to you soon.

01:12:43 – 01:12:43
penny

Ok.


01:12:45 – 01:12:45

[speaker unknown]

Thank you, bye!


01:12:46 – 01:12:50

Todd Smith

I wrote to Frank Tracy.


01:12:52 – 01:12:52

[speaker unknown]

Ooh.