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.