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1:08

This is the Rich Dad Radio show, the good

1:10

news and bad news about money. Here's

1:13

Robert Kiyosaki. Hello,

1:16

hello, hello Robert Kiyosaki, the Rich Dad Radio show, the

1:18

good news and bad news about money. And

1:20

we broadcast from beautiful Phoenix, Arizona, where it's

1:22

either heaven or hell. And right now, it's heaven.

1:25

It's beautiful. It's perfect time of year. And literally

1:27

that. So we have a very

1:29

important show today. It's a friend of mine for

1:31

years. As

1:34

some of you may or may

1:36

not know, there's a saying

1:38

that you have nothing good to say, don't say

1:40

it. Or if you

1:42

don't know what you're talking about, don't say it.

1:46

But my generation is the Baby Boom

1:48

generation. So I was getting out of the

1:50

Marine Corps in 1974. And

1:53

that's an important date, not that I was getting out of the Marine

1:55

Corps, but 1974 was a

1:57

start of what they call ERISA. retirement

2:00

income security act, which

2:02

today is better known as the 401k or the IRA.

2:09

And there was this long way of

2:11

saying the baby boom generation is the

2:13

first generation without a pension. And

2:16

what they put us into was a

2:18

thing called defined contribution pensions, which

2:21

is a 401k and IRA and things like

2:23

this. Whereas my

2:25

parents generation, they had a

2:27

defined benefit pension plan, DB

2:30

versus DC to find benefit.

2:32

That means you were guaranteed, let's say a thousand

2:34

dollars a month for the rest of your life.

2:37

The baby boomers don't have that. And

2:40

today the boomers are now pushing

2:42

into the late seventies and

2:45

they're starting to retire. And

2:48

the stock market has been boomed up

2:50

simply because there are so many boomers

2:53

with their 401ks or IRAs

2:55

adding money into the mix.

2:58

But as the boomers start retiring, as

3:01

you know, the stock market has to come down today,

3:04

we're in what's called the everything bubble stocks,

3:07

bonds, mutual funds, and real estate. Everything's in

3:09

a bubble because they just pump so much

3:11

cash into it. So our special

3:14

guest today is Ron Willoughby. And he comes

3:16

from that industry, the financial

3:18

services industry, and

3:21

he knows more about it from the inside

3:23

than I ever will. And

3:25

my concern is, I'll net it out. I don't think

3:27

many of our baby boomers are going to be able

3:29

to retire. It's like there's

3:31

an old peanuts cartoon where Lucy

3:33

held the football and Charlie Bond ran up

3:36

to the football and she pulled the football

3:38

away. So just when the

3:40

boom boomers think they have a retirement for the

3:42

rest of their lives, you

3:44

know, Lucy is going to pull

3:46

the football away and these boomers will be homeless

3:49

because all they have is their house now. So

3:52

we're in a very serious time. So I'm welcome

3:54

to the show Ron Willoughby.

3:56

And Ron is from

3:59

the financial services industry. industry and

4:01

he's promised me he's going to give us

4:03

the dirty on it. So,

4:06

Ron, tell us about your background in the

4:08

financial services and welcome to the Rich Dad

4:10

Radio Show. Thanks, Robert. I appreciate

4:12

you having me on. It's

4:14

good to be here. So, I was

4:16

probably about 30 years on Wall Street,

4:18

different firms, mostly with high

4:22

net worth customers. I

4:25

started pretty much in the early

4:27

90s, from the early 90s to

4:30

about 2015-2016. But

4:34

what they did in the industry was

4:37

they took the

4:41

way that they treat clients. It

4:43

used to be commission-based. If

4:46

you're charging the person a commission and

4:48

his advice isn't working out for you,

4:50

you're going to be reluctant to keep

4:52

paying that person commissions. They

4:54

went from commission-based

4:57

to fee-based. When

4:59

they went from commission-based to fee-based, they

5:03

created something where it's the only industry

5:06

on planet Earth where the

5:08

advisor or any professional of any sort

5:10

gets paid in perpetuity for some piece

5:12

of advice that they might have given

5:14

10 or 15 or 20 years ago.

5:18

If I told the

5:20

person to buy Tesla 15 years

5:23

ago or Apple or Google or whatever,

5:25

I'm getting

5:28

paid one and a half percent on that thing forever

5:30

and ever and ever, assuming that it stays

5:32

in their account. I did

5:35

exactly that. I had people that were buying Apple in 2001,

5:37

2002, 2003. There

5:45

are hundreds of percentage points on this thing,

5:47

thousands of percentage points in some instances. If

5:53

you bought something that Split

5:56

adjusted for a dollar and I'm charging

5:58

you 1%, Well, Any

6:00

white males thousand dollars have been

6:02

paid Ten dollars. I'm actually getting

6:05

paid. More. on an annual

6:07

basis on that particular thing

6:09

for that particular companies in

6:11

that that that customers. Pay.

6:13

For these the stock in the first

6:16

place so it's great as a great

6:18

problem to have as the customer. But.

6:21

The reality is that costs were just

6:23

simply paid a commercial nothing and decided

6:25

to hold. It says something that they

6:27

need to be able to take into

6:29

consideration. right? So when

6:31

I was ah in the business

6:33

a stout particular. I.

6:36

Just obliged to trade. Finley

6:38

traded oil and gas partnerships.

6:42

And I could. Take.

6:44

An oil and gas partnership that

6:46

was family treated maybe thirty thousand

6:48

shares a day and here for

6:50

say was. Dead. Plus.

6:53

To see for simplicity, say get ten

6:55

dollars the beginning of the year and

6:57

you get into October November will if

6:59

it's. Nine dollars. They're.

7:02

Going to start so in that thing

7:04

to harvest the losses out routinely fi

7:06

things with an intrinsic value. Ten dollars

7:08

and I'd buy him at eight. And

7:11

then I'd go ahead and flip out of those things.

7:14

As the beginning of the year and I

7:16

they would they would pop right back up

7:18

after the attacks are missing. Stopped. And

7:22

and in doing that, You. Know

7:24

I'm I'm able to make the customer twenty

7:26

twenty five thirty percent. A

7:28

you and a matter of a couple

7:30

of months now can't do it on

7:33

an unlimited amount of money recently traded

7:35

in if I do with too much

7:37

or than the trade stops working. but.

7:40

Your The point is that. I'm.

7:43

Not going to do that. Yeah. In,

7:45

In in bed, that and eight you

7:47

know, one a nap percent. Overall

7:50

fi under ten million dollars, but if

7:52

we've got a relationship or use any

7:54

right, go ahead and find me this

7:56

trade. I can do that if I'm

7:58

getting paid on it. Cancer

8:01

aged. Takes. The motivation

8:03

from a financial advisor from billion

8:05

on this whole universe of your

8:07

portfolio to flow. Finally some actual

8:10

transactions that makes sense and is.

8:12

It's not that every financial adviser

8:14

said be job. Charging.

8:17

A flat fee, but it

8:19

is certainly his arm. He.

8:23

Is as a time in a place

8:25

and a good beacons exhausting to the

8:27

return on the account especially if you

8:29

gotta downmarket like what we're probably going

8:31

to be seen and some of these

8:33

things we've got. You. Know an

8:35

inverted yield curve that it's gonna make

8:38

it really really hot hot rod month

8:40

because I've even. I don't understand what

8:42

she said. So okay, I too was

8:44

so what is wrong? So so you

8:46

hire a financial planner for your four

8:49

o one k and the average guy

8:51

doesn't have one to them as if

8:53

they have a company. And

8:55

a company offers a four o one K.

8:58

Does. The employ he have any

9:00

contact with the financial advisor. Some

9:04

companies will have a financial advisor

9:06

that will give advice. A

9:08

lot of don't and there is.

9:10

They leave up to the employee

9:13

to educate themselves through fidelity or

9:15

whoever it is. Okay, so let's

9:17

say you're a doctor or self

9:19

employed, A lawyer? Somewhat self employed.

9:21

Or. Your that you don't have a company four

9:24

one k. And they hire

9:26

a financial advisor. What?

9:29

Warning: would you give that person about the

9:31

financial advisor Mean as a whole way, you

9:33

can make a lot of money without getting

9:35

rich and home. And. I

9:38

think the funny the typical financial

9:40

adviser on a four o one

9:42

k. Probably doesn't know

9:44

very much at I. Wouldn't.

9:49

I wouldn't give a lot of credence to some guy

9:51

on the phone and. Ah, That

9:54

might have just gotten his. securities

9:57

license oaks Well,

10:00

the facts are it takes longer

10:03

for a hairdresser to get a license

10:06

than a financial planner. You

10:09

know, I mean... Well, Robert, more to

10:11

the point, I think there's a lot of hairdressers

10:13

that make more than the financial advisors that are

10:16

advising on those 401ks. It's

10:20

not a high paying job. It might

10:23

sound good and they get to wear a tie to

10:25

work sometimes if they want to. But

10:29

yeah, they don't generally know very

10:31

much. And more

10:34

importantly, they don't have any history. They

10:36

don't know the market history. They

10:38

weren't there and they're not going to be

10:40

able to give good advice in bad

10:42

situations that they've never seen before. Correct.

10:46

And so the way they make money is

10:49

by selling you a stock. Selling

10:52

Apple stock was a good idea. I mean,

10:54

that's been a good stock. But

10:57

what you're saying is a lot of times they'll

10:59

sell something else because the commissions are better? No,

11:02

I'm saying that they will get

11:04

paid... They get paid a flat

11:06

fee in perpetuity no matter

11:09

what happens. So if

11:11

you're paying somebody one and a half percent

11:15

flat fee for

11:17

20 years, I mean,

11:19

it turns it into an absurd

11:22

amount of money

11:24

that's coming off your return. So I

11:27

think it's important for people to reduce the

11:29

fees that they're paying and

11:31

be very aware of the opportunities

11:34

to either pay no commissions or

11:36

small commissions for quality advice. It's

11:38

a better way to go. But

11:42

let's say I'm a doctor or a lawyer. I know

11:44

nothing about the stock market and most of them don't

11:47

because we've all met these guys. They

11:50

did well in school, but as a

11:52

doctor or a lawyer, but as far as the

11:54

stock market goes or the real estate market and

11:56

those things, they're in neophytes. They don't know what

11:58

they're doing. So are

12:00

you suggesting that they just trade on

12:02

themselves or how, what would they do?

12:05

Would they hire a financial planner or

12:08

what do you suggest they do? I

12:10

think if, if I'm one

12:13

of those guys who would find a

12:15

financial advisor and I would have that

12:17

financial advisor charge me commission rather

12:19

than flat fee on everything forever

12:21

and ever and ever. So if

12:24

I go to a financial advisor, whose

12:27

opinions I appreciate, I'm more than

12:29

happy to mathematically

12:31

speaking, I'm better off

12:33

paying full commission than I am paying one

12:35

and a half percent forever and ever and

12:37

ever on that, on that money that I

12:40

have with that person, but

12:42

somehow or another, wall street

12:44

brainwashed everybody into thinking commissions

12:47

are bad and perpetual fees

12:49

are good. Congratulations

12:52

to him. It was a great, great

12:54

business model. Uh, but

12:56

as an investor, I would never ever

12:58

do that. Okay. Let

13:01

me ask you this. Cause I said 74 was the

13:03

year I got out of the Marine Corps. And

13:06

that was the same year that the arrest,

13:08

which now is the 401k came out. And

13:12

in 74, I'm coming out of the Marine

13:14

Corps and all of these people are rushing

13:16

in to become this new profession called financial

13:19

planner. And so I

13:21

was, I was in downtown Honolulu at the

13:23

time and they would have

13:25

these huge meetings, you know, let's say become

13:27

a financial planner. So I'd

13:29

go to the meetings and

13:32

most of the people at the meetings

13:34

were school teachers, you know,

13:36

trying to moonlight, get some extra money and all

13:38

this stuff here. And

13:40

that's when I found out it only, it

13:42

only took them a few months to get

13:45

a financial planner's license, where it took a

13:47

hairdresser, a lot longer time to get a

13:49

license and

13:51

I couldn't believe what

13:53

they're advising people to do. You

13:56

know, it was, it was such a bad industry. So when I looked into it, I,

14:00

I also found out that

14:02

the way a lot of the financial advisors made money,

14:04

I don't, this was back then, I don't know if

14:06

it is today, was they

14:08

sold life insurance. Is

14:11

that whole life insurance? Is

14:13

that still true today, Ron? A

14:17

really good life insurance is

14:19

extremely time consuming on the

14:21

part of the advisor

14:25

and the agent that's doing it.

14:27

So I've done,

14:30

any transaction that I've ever

14:32

done that was the most bulletproof, absolutely best

14:34

thing that I could do for the customer,

14:37

it was usually a cash

14:39

value life insurance, like what

14:42

you're describing there. But to

14:44

implement those things takes months and months and

14:46

months, they're very, very hard work

14:48

and most financial advisors don't touch

14:50

them because it's money out of their one

14:52

and a half percent annual. Usually,

14:55

they take months and months and months to

14:57

put together. But at the end of

14:59

the day, yeah, the customer on those life

15:02

insurance is probably going to do really, really

15:04

well compared to put money

15:07

in the S&P 500, pay one and a half

15:09

percent in fees and then, you

15:12

know, another, probably another two points off

15:14

of that in taxes.

15:16

Best case scenario, everything's long-term

15:18

capital gains. It's not going

15:21

to happen, but you know, mathematically,

15:23

take the historical rate of return on the S&P 500

15:26

on the S&P 500 minus fees, minus

15:28

taxes, you're better off in life insurance.

15:32

Is that right? Absolutely.

15:35

Okay, and we'll come back, I'm going to

15:37

ask more on this because like

15:39

I said, Ron's been my friend for all these years and he's

15:41

always telling me things are going, so I

15:44

want to invite him onto the Rich Dad Radio show

15:46

so he could share what he knew because I don't

15:48

know anything about this world. I

15:50

don't have a 401k, I don't have

15:52

stocks, I have my

15:55

own retirement plan, I retired years and years

15:57

ago in real estate. That was the difference.

16:00

And I'm still being paid by that real estate.

16:02

I don't pay any more commissions on it. So

16:04

a come back and we'll find out from Ron.

16:07

Why? It takes so long

16:09

to sell somebody's life insurance. Will

16:11

be right back. Robert

16:15

sounded the alarm and twenty twenty

16:17

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16:19

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16:21

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16:23

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16:27

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18:53

Welcome back, Robert Kiyosaki, The Rich Dad

18:55

Radio Show. Today, our special guest is

18:57

Ron Willoughby, who's a long-time friend and

19:00

he comes from the inside of the

19:02

financial services industry, also

19:04

called financial planners. And

19:07

I've been at a sometimes

19:10

not silent war, but

19:12

I had a partner in The Rich

19:14

Dad Company and she wanted to put

19:16

everybody in a 401K. And

19:19

I went nuts. And of

19:22

course, she's a CPA. Her

19:24

husband was an attorney and they don't know Jack.

19:27

You may be an accountant, you might be an

19:29

attorney, but you don't know anything about investing. And

19:32

she says, I'm going to put people in, I'm going to put

19:34

all of our employees into a 401K filled

19:37

with mutual funds. And I

19:39

went psycho on her and then we

19:41

split our company apart. But

19:44

so that when I meet Ron, Ron comes

19:46

from that industry and

19:48

he's better able to explain why

19:50

I didn't trust the financial services

19:53

industry, financial planners, and what

19:55

Wall Street is teaching people. So

19:58

as I was talking about before, went to

20:00

break, many financial planners

20:02

sell life insurance, this whole life

20:04

and term, I guess. So

20:07

my question to Ron was why does it take

20:09

so long for a financial planner, even if it

20:11

was lucrative, to

20:13

sell a life insurance policy? What

20:15

took the time? It's

20:19

underwriting, it's getting the

20:22

client to get

20:25

medical records from the doctors. It's very time

20:27

consuming to do this because in most

20:29

of these cases, there's multiple

20:32

millions of dollars worth of life

20:34

insurance. And these

20:36

are permanent life insurance policies. They

20:38

are going to get paid. So

20:41

when you compare a term life policy,

20:43

where 95% of these things never get

20:45

paid out, they

20:48

usually, they

20:51

term out or they just, the

20:53

customer stops making the payments. Those

20:56

don't get paid out, but on the whole life, they

20:59

almost always get paid out. So

21:01

the underwriting process is

21:04

extremely stringent. And

21:07

that underwriting process takes

21:10

months and months and months on

21:12

multimillion dollar cases. So

21:15

a financial advisor where they're gonna have

21:17

a commission there that might be 20

21:19

or 30 or $40,000, they

21:23

take that and they think about this as

21:25

a six month process. They don't like

21:27

it that much. It sounds like

21:29

it might be good, but the firms, they would

21:31

rather have that financial advisor, go

21:33

find more money, go plug it in at

21:35

one and a half percent. Spend your time

21:37

going to find more money at one and

21:39

a half percent, don't worry about the life

21:41

insurance. But if you

21:44

think of it, the way I

21:46

look at it is if a person puts money in the S&P 500,

21:50

long-term rate of returns can be less than 10, let's

21:52

call it, you know,

21:55

9%, 9% minus the one and a half, let's submit seven

21:57

and a half, and then seven and a

21:59

half, Minus. Minus. Taxes,

22:01

They're probably gonna be right around six

22:03

percent. Always gonna do better

22:06

than six percent entered. Definitely gonna die.

22:08

So you either make and six you're

22:10

making the death benefit. The death benefit

22:12

he is typically you know, more died

22:14

double digits. Stop. You.

22:17

If you give you look at it new

22:19

comparing apples to oranges. It boils

22:21

down to what can you qualify for

22:24

and if you can qualify for. He

22:27

of here for your and decent health. And

22:29

I'll let you pulled. He. Also money

22:31

in their you should probably take a good

22:33

good look at it and and considerate. Message.

22:36

From a from a. You.

22:39

Know. Six. Percent or

22:41

a percent of the life insurance is gonna

22:43

pay more. So

22:45

let's say you're on a doctor

22:47

or lawyer. Was young young person

22:49

today. killing started. With

22:52

you run was you hire a financial planner

22:54

about what you do. I

22:56

would definitely hires a financial advisor,

22:58

financial planner and I would make

23:00

sure that I put all of

23:02

the options out there in front

23:04

of the Show me see based,

23:06

show me commission based as Me:

23:08

a better sure as hell so

23:10

Me: my life insurance options As

23:12

a doctor When I put money

23:14

into an insurance policy, it's indemnified

23:16

from creditors. And he is.

23:18

It's It's tax free. it's got a

23:20

death benefits indemnified from creditors. So in

23:23

most states when I put that money

23:25

to the thing that get sued or

23:27

whatever happens to me at some point.

23:29

On. Don't that said,

23:31

money's off the table. I would ever seen

23:34

one of these things to have a a

23:36

doctor the didn't say absolutely. I

23:38

was going to get a really

23:40

boils down to. How

23:42

much as our sky put in there? Because.

23:45

Doctors always afraid of malpractice and all

23:47

that. You have here to

23:49

through an anesthesiologist and you look at one

23:51

of these things you'd never, ever. Not.

23:54

Buy It is just a matter of how much.

23:56

how much am I going to be able to

23:58

put in their your you have to call. You

24:00

have to have an insurable interest. You

24:02

have to have, you know, a

24:04

business practice that merits that you're going to

24:07

put X number of millions of dollars into

24:09

one of these policies. So

24:11

what you can qualify for is

24:15

usually what they're trying to consider. I

24:18

personally think you take, you know, how much the person's

24:20

net worth is, and, you know, some

24:22

part of it should probably be in there. So

24:26

if I'm a young person

24:28

just got out of school, married

24:30

with two kids, what

24:33

would you recommend they do? I

24:35

mean, I wouldn't

24:38

talk to a financial planner, but I don't have to.

24:41

But most people do. Well,

24:43

if your financial advisor, financial

24:46

planner has all options available,

24:48

you know, I

24:50

always think that, you know, going back to

24:52

your very first points

24:56

is you need to look at hard

24:58

assets and you look at real estate and the

25:00

value of the leverage and have a

25:02

long-term perspective on those things and the cash flow that's

25:04

going to come from it. And

25:08

consider that financial planner.

25:11

Is he going to beat

25:13

up on real estate? Is he going to understand the

25:16

value of that? Is he going to, you know, be

25:18

able to help me with real estate? I mean, there's

25:20

a lot of financial planners and

25:22

financial advisors out there that are more

25:24

than happy to work with a

25:27

qualified person that's trying

25:29

to buy real estate and use

25:31

that leverage for an income portfolio. You

25:36

just need to make sure that your financial advisor

25:38

or financial planner doesn't have

25:40

a, you know, they're not

25:43

looking through a, they

25:45

need to have a wide lens. And they need

25:47

to have a lot of options in front of them. Well,

25:49

this is what happened to me personally was

25:52

years and years. I mean, I retired, I was 47,

25:54

Kim was 37 and we had income coming in. for

26:00

the rest of our lives due to our real estate.

26:03

And this high fluting

26:05

financial advisor, attorney guy,

26:08

downtown Phoenix here called us in.

26:11

And they brought in this guy from Washington,

26:13

DC. The guy had the wingtip, not the

26:16

wing, but you know the tricky glasses on.

26:18

He looked like he went to Harvard or Yale

26:20

or something. And he

26:22

looked at our finances and

26:26

it says, you guys are too heavy real

26:28

estate. I said,

26:30

how can we be too heavy for real estate?

26:32

All of its income produced. You know, you can

26:34

have a lot of real estate that's non-producing. Like

26:37

most people, houses are not producing income, but

26:40

we own department houses and commercial buildings

26:42

and we're producing income. He

26:45

says, my recommendation is you sell

26:47

all your income producing real estate

26:50

and put it into stocks. And

26:53

I started laughing, but they weren't

26:55

laughing. I

26:57

mean, they were serious about it. And then I

26:59

realized they don't make any money from income producing

27:01

real estate. And this SOB

27:04

was going to have me

27:06

sell everything that we based

27:08

our retirement on, just so he could make

27:10

a commission on stocks. Is

27:12

that SOP standard operating procedure or

27:14

what? It's pretty close to it.

27:17

If they're not gonna, they're going to tell

27:20

you to sell anything that they're not making

27:22

money on. And

27:24

that's, they don't screw around with

27:27

the cash value life insurance because they

27:29

don't get paid. They might

27:31

get a big chunk, you might

27:33

get a decent commission today, but

27:36

they don't get to build that one and a half percent for

27:38

the next 20 years, right? So it

27:40

costs them a lot of money

27:43

to recommend cash value

27:45

life insurance to the client.

27:47

So that, you know, it's time consuming

27:49

and it costs the money. They're never

27:51

ever going to bring it up to

27:53

the customer. Ever.

27:56

The customer needs to find somebody that's an

27:58

expert in that stuff. Yeah,

28:01

my best friend and I, I mean, the people

28:06

we don't like are financial planners and real

28:08

estate agents, you

28:11

know, because they're commission based

28:13

only. So what

28:15

with the realtor, what

28:17

is the thing that you

28:19

don't like about them that's similar to

28:21

the financial advisors? Just the

28:23

commission? Well, my friend,

28:25

my friends and I make millions off of

28:28

income producing real estate. And

28:30

these guys only make 6% commission. Do

28:33

you know what I mean? They're not

28:35

smart people. I mean, they may be academically

28:38

smart and all this, but

28:40

when it comes to real estate and I

28:43

mean, I'm in a billion dollar

28:45

mark. And most of these

28:47

realtors that they're looking for a million dollar

28:49

house, so they can make a 3%

28:51

commission or a 6% commission. Like

28:54

I just talked to a realtor yesterday. I

28:57

couldn't believe how stupid she was. I mean,

28:59

I had no fucking idea. I'm

29:01

going, holy crap. She says, I

29:04

want to talk to you about listing your house. I said, her

29:06

first question was how old is

29:09

your air conditioning unit? I said, how do

29:11

I know? You know,

29:13

how old's your roof? I said, how would I know?

29:16

I mean, they get so stuck in the

29:18

minutia versus what's my motivation

29:20

for if I was going to sell, what, where am

29:22

I going to go next and all this. But

29:25

when she wanted to know what was the, how

29:27

old was my air conditioning unit? And yes, you

29:30

know, in Arizona, air conditioning units are important. Go

29:32

through them fast. But that's,

29:34

that's all they can think about. They're

29:37

not smart investors. They're

29:40

commissioned salespeople. They

29:42

don't understand the leverage. R1K guys

29:45

and financial planners. That's

29:47

my bitch, you know? Yeah.

29:49

Well, they don't understand the leverage like you

29:51

do. And you've, you've

29:53

got that down. You've got the,

29:56

the leverage aspect of real estate

29:59

nails. That's why

30:01

people listen to you. Yeah,

30:03

but I love real estate. And

30:05

then, like I said,

30:08

my first partner for Kim and myself,

30:10

my wife, when she

30:12

brought in this financial

30:14

advisor, it told us to sell all of our

30:16

real estate. I

30:19

mean, I knew I was in trouble because I have

30:22

an idiot as a partner. Of

30:24

course, she's a CPA. You know what I mean? They don't

30:26

know shit. Well,

30:29

it is not just

30:31

not knowing, but being particularly

30:33

financially motivated not to know,

30:36

right? They're motivated not to know these

30:39

things. There's a lot of doctors out

30:41

there. They're very motivated

30:43

not to know certain

30:45

cures and treatments and therapies. And,

30:48

you know, got to keep this person coming back and back and

30:50

back and back. So they're not looking for

30:53

the solutions all the time. Yeah,

30:56

I mean, if the going

30:59

back to your original question, I think that they need

31:02

to have a person,

31:04

a trusted advisor of some

31:06

sort that has a very

31:08

open mind and has

31:11

a solid understanding of commission-based

31:13

advice and fee-based

31:16

advice. I would never pay strictly

31:20

fee-based in purpose. Robert,

31:23

imagine buying real estate. You're

31:25

going to do a deal on a building and

31:28

they say, hey, Robert, we're not going to charge

31:30

any commission on this thing. We're

31:33

just going to charge you one

31:35

point per year in

31:37

perpetuity. I

31:40

mean, you'd probably

31:42

smack them. I mean,

31:44

it's just so stupid.

31:47

It's so absurd. But

31:49

somehow these companies have

31:51

convinced the population to

31:54

pay one, one

31:56

and a half percent forever. It

31:59

Just blows up. My mod it and

32:01

commissions are bad. Towards.

32:03

Me to person. For

32:05

me to present a My Apple that I own

32:07

for twenty years? Why would I care. Forty.

32:10

Four percent ochre, you know. But by the

32:12

even if it's if it's a good stock

32:14

and you're going own for twenty years, He

32:17

dismisses, and if you're buying an index

32:19

one, obviously, you're going own it for

32:21

really long time. People that pay. A

32:26

flat thieves ongoing for index

32:29

ones at my disposal night.

32:32

Blows my mind. So.

32:35

We're we're we're gonna time. What?

32:38

Advice would you say to

32:40

people. Who are now

32:42

wondering if they're getting good advice

32:44

or not is or away you

32:46

you can test. Your.

32:48

Advisors like when I when I taught

32:50

is a real so yesterday. And

32:53

all she said was how's your conditioner on

32:55

going. In

32:57

as as as well. Air

32:59

conditioners expensive put is not the

33:01

most expensive thing or property. And

33:03

when I talk to financial planners.

33:06

Are gonna talk to anymore because like a second

33:08

time that they want me to sell all my

33:10

real estate. So. They could make a commission

33:13

off of me. That's. All I need

33:15

to know. What advice would you give

33:17

a person looking for and of advice

33:19

or. Is a real

33:21

estate or stocks. Get.

33:24

An illustration on some type a

33:26

whole life insurance policy. Know what

33:28

the what? the rate of return

33:30

part potential is there on a

33:33

after fi after tax basis? Know

33:35

that number is as nice numbers

33:37

gonna be probably six seventy percent.

33:40

And then juxtapose that where the

33:42

conversation with a financial advisor and

33:44

asset financial advisor. What do you

33:46

think about cash? value? Life insurance

33:48

And as the financial advisor says,

33:51

i don't like it. Ask.

33:53

Them why they don't like it a probably not

33:55

gonna have a good reason and aside because they

33:57

don't know what it is and a dodo it

33:59

is. Because the from that they

34:01

work for. Has never put it

34:04

in front of them because the from doesn't

34:06

want them. Promoting. Something that

34:08

loses the for money overtime.

34:12

So right at. I'm

34:14

glad you're my friend cause I sent

34:16

us. I see as a German all

34:18

those I can just ask you questions

34:20

and I think that's one of the

34:22

best things about all your friends. If

34:24

we have stupid friends, you're probably poor.

34:27

And you if you have smartphones you're

34:29

probably rich at the says. I tried

34:31

to call your friend and you know

34:33

I'm obsessed with come On the Bridge

34:35

the radio show to share your years

34:37

of experience from the inside of Wall

34:39

Street. In. To move into the world.

34:42

Abs I prefer You have me on

34:44

a happy birthday again and I'm looking

34:46

for their grab a drink with the

34:48

okay all right we'll do assume okay

34:50

thanks where Thanks very much and will

34:52

be right back for the final word.

34:54

Thank you very much. Robert

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