Why most investments are C.R.A.P

Transcript

Unknown Speaker  0:01   The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.

Unknown Speaker  0:19  
Hello, and welcome to another episode of wealth talk. This is Episode 21. My name is Christian Rodwell, the membership director for wealth builders. And I'm joined today by the founder, Mr. Kevin Whelan. Hi, Kevin.

Unknown Speaker  0:29  
Hi, Chris. How you doing today? Excellent. Thank you.

Unknown Speaker  0:32  
So today, we are on to pillar three, which is all about investments.

Unknown Speaker  0:38  
Yeah, kind of number three is really it as big as the pension pillar. Because if you think about it, you know, well, what is an investment, I mean, it's a huge, huge area where people kind of park their money done, they may sort of put it in some market or other whether it's the market for cash, whether it's the market for government bonds, or National Savings. It's the stock market, which is the biggest market of all, of course. But as we'll discover, Chris, as we go through this concept of markets, there are many, many markets. And just as you can buy groceries at different prices in different markets, will learn very much that it's really important to understand, you know how markets work, not not a detailed dive. It's not important to dive so deep when you're trying just to understand broadly how markets work. Remember, the key to the wheel of wealth is on bit of education, to be able to ask better questions, not all of the education. So this session will not be a complete focus on every single aspect of every single market. It will be too big a topic, Chris would still be here, three weeks from now. But I think it allows us to dispel some myths. And as I said, on the left, the last podcast, Chris will shoot a couple of sacred cows as well. Things that I do think fundamentally are misunderstood, and badly taught. And it truth be told, really, people are misinformed. And they're misinformed for a reason. Because those people who dispel the education is really salesmanship in disguise. It's people being sold the line, as opposed to doing something which they know to be good for them. Which is why Chris, I would like to use the title that almost all investments are car AP, Chris,

Unknown Speaker  2:42  
yes, I'm sure that title, it caught a few people's attention, I'm sure who are listening right now. So what do we what do we mean by this? Kevin?

Unknown Speaker  2:51  
Well, look, Chris, I'm not having a go at every market in town. Of course not. It's a pillar. So you build your wealth on pillar number three. Invariably, though, you can't build your wealth. Well, in pill number three, because you're relying on a market that somebody else has control over or the world has control over. So you don't, you don't really have that control. So as we get into other pillars will realise we have got the ability to drive value, to bring more of our own wealth, dynamic, more of our own skills, and more of our own time and collaborations, all those forms of leverage, we don't really have too much to bring to the investment pillar, because almost in all cases, the money's parked, it's given to somebody or some organisation, for them to do something with that we kind of hope works. And you know, so there's a massive, massive challenge, when people just hope that things will work. And I'm not sure, that's a great basis on building wealth. Now, the stock market isn't a bad place, for example, for having some wealth invested once you built it. But it's not necessarily, in my view, the greatest place to build the wealth, if you're simply not able to add control, you can't wake up today and say, I'm going to do something today, that will change any market at all. You can't have it, you know, it's we don't have enough money as individuals to do that. So we're, we're, we're right, we're very much relying on how a market works. And, and I would like to say there are four key things that anybody who's investing in a market should be aware of, and that's the acronym Chris of CRA P. So I'm not saying all investments are crap. I'm just saying, here's an acronym is something or a pneumonic, nice and easy to use, that you can create as a filter, before you make any investment. Okay, so we had a bit of fun with it. But let's get serious now.

Unknown Speaker  4:59  
Okay, so kicks off with the same. And Kevin?

Unknown Speaker  5:03  
Well, you know, if you understand that, I said, you can't control the market. What can you control? Well, the only thing you can really genuinely control is the cost of investing in that market. So that's the entry cost, the running cost, and the exit cost. And, you know, they're always costs when you buy into anything. And of course, a good wealth builders looking for value. They know there's a cost to do anything, but they want value from that. And that's how the stock market in any market really should be viewed. What is the cost of entry into the market? Now, of course, entry into things like cash, if you're in the bank, for example, you know, the cost of entry is not high, is it? I mean, you'd argue it, probably zero. But the opportunity cost, isn't it? So in economic terms? You know, that's my background, Chris, is the cost that is always got to be considered when looking at the true cost of anything. And what's the opportunity cost? In other words, what can you do instead, that will give you a better result, a more leverage return that helps you towards building your wealth, because all of the investments the reason why people invest isn't to invest. They invest for some kind of outcome. And that outcome almost always is measured, in terms of what's the return on the investment. As we call that an ROI, why don't we return on my investment? Well, the return on your investment is always the what's the gross return was the total return minus the costs of being in that, and you can never control? The total return in any market, as I've said all along. So the only thing you can control is the cost. I think we'll hear when we from some of our other partners, some of our students that one of the big things that they focused on is, is really minimising that cost of entry, minimising that running cost, and minimising that exit cost or conversion cost. I'll come on to converge. And, Chris, when we get into the a part, remind me that if you will, in case I forget, which is this this idea, then, of if you recognise that billions and billions of pounds, just like pensions, is really passed into the hands of an industry and the industry have a view, that is, you know, the more that they can make the costs look low, the more likely it is that people will simply ignore them, or kind of cast them to one side as if they're not worth worrying about. And I'm not sure that's the right approach. So, Chris, I think I've mentioned this before on a podcast or to the average, running cost, even forgetting entry costs for the minute. But the average running costs, which is a much longer term cost for people holding their money. So let's say someone's investing money in the stock market, and they hold that money for the long term. You know what the average cost of that is, when you look at who's holding the asset, because we don't hold the shares anymore, who's holding that's called a custodian who's managing the money in terms of who's making the decisions about what investments are made, and who's making the decision or the interface between the the investor and accessing that money. In other words, an intermediary, the average cost of that is for pension holders and investment holders in the UK,

Unknown Speaker  8:42  
on average, I would I would go for around 2%,

Unknown Speaker  8:45  
you'll be listening to a good

Unknown Speaker  8:48  
I don't know about you, Chris. But if if the average cost of holding money, say 2%.

Unknown Speaker  8:58  
And I'd say your average return was 6%. c two doesn't sound a lot. Especially if you break it down to what the custodian cost to the market cost, the supermarket is quarter of a percent. You know, the advisor cost is half a percent. don't sound like a lot doesn't really. But when you think about if the gross return, and the and the fund manager, of course, and we talked last week didn't worry about one fund manager who got it horribly wrong for his clients, but pocket is a nice bonus for himself. So this whole area makes my blood boil a little, because it kind of gets people into a process of thinking that this is super, super complicated. And only experts can do this. And therefore you should put your hands or your money rather, into the hands of experts, and their costs are reasonable. And in my experience, they're not reasonable at all, if you measure it a percentage of six, say, or we can choose a percentage of 10, you know, you still paying a quarter to a third in some cases a half, I mean, look at the people who are holding money in retirement, you know, where they are to to risk is likely to be lower, therefore, their returns will be lower. But if their costs are similar, they could be paying 2% to get 4%. And in fact, 50% of your money goes into the industry instead of into the hands of the people who should have that money and should have their wealth and their security in place. So you know, I'm not really a fan of, of a market based approach that just simply delegates the money to a third party. And I'm not saying advisors or the industry's got bad intentions, I'm definitely not saying that. I'm just saying that there's another way, you can control your cost, you can access cost much more cheaply, in almost any month, and in some cases free, or a fraction of point 1%, you know, point 2% really, really very low cost, if you pay attention to how you can access and the running costs can be very low to particularly if you're looking into investments where there aren't really any running costs at all. And in some cases, the running costs of the stock market can be very, very low. If you know how to buy into the marketplace as a whole at a fraction of the cost it would take if you use the inter mediated service that is more often used.

Unknown Speaker  11:39  
So I think we'll have some of our

Unknown Speaker  11:43  
speakers talk a little bit more about that. I think you've got those lined up. And currently we will do we will do probably in the next episode. Yeah. And I know that you've said on previous podcast, Kevin, you know, if you're a wealth builder, and changing that mindset from that the employee, perhaps to the entrepreneur, that you really have to be in, in the business of money management. And as you say, it doesn't mean studying up loads of finance books, but just understanding the basics of money management. And obviously, cost is an area where perhaps some people just just accept, you know, that's the way it is. But it certainly doesn't just have to be like that, does it?

Unknown Speaker  12:16  
No, it's not the way it is at all. And I think anybody who's seeing the growth of the kind of online, supermarkets, online comparison sites, these sorts of things is very easy to to, to get access to markets quite cheaply, through the use of ETFs, exchange traded funds, much lower cost way of being able to buy into the principle of a marketplace be doing what markets do. And all of the evidence is Chris, and I'm, you know, we can provide the evidence, but there's so much evidence that the relationship between total performance and cost is absolutely in alignment. In other words, the higher your cost of running your money, the lower your performance will be. So you don't get more money. By paying more for it. The evidence is that's just not the case. Yes, there'll be a few exceptions where, where, you know, fund managers will outperform the market, but not consistently. So. And to the extent that I would challenge anybody to, to want to do that, to think that somebody else they can choose the right jockey to back a horse, you know, when in fact, it's just much easier if you want to be invested in, say, the stock market, then use the stock market to do what it does, which is, companies making profit, just as any, as an entrepreneur does, and allow those profits to be made, and make your gains in the lowest cost way. Because the just the market is so fast. And it's so instantaneous. And when it comes to the speed of things, you know, there's no way any individual can really outperform the market. So anyway, that's that's, that's if you keep those costs as low as possible. So use ETFs. Use trackers use passwords, over actives. In general terms, if you're, you know, if you want to, we know that some people want to be active themselves, and that's fine. But that's you making a decision, you want to learn how the market works in more detail. That's not the purpose of this podcast. But you can get into that. And those people who do that, who get the right education, get the right support, make the right Connexions Test, test test do due diligence, then they can do a better job. But they're focused on it themselves, they're adding value for themselves in a different way, which is, you know, when you're trading in the market, and you're looking for small pockets of opportunity, or you're holding something with good intrinsic value, like gold, silver, or the precious metals and things like that, or, or just long term stocks and long term holdings of the Dow or whatever would be and then you're learning a little more how to trade and how to make gains, because other people are trading, you know, so the use of options. But that's, again, beyond the scope of today. But we know lots of good people who teach that for those who want to know more.

Unknown Speaker  15:23  
So so let's move on then Kevin Sri have a look at the are

Unknown Speaker  15:28  
Yeah, well, our is always understanding risk, you know, and the second ROI, it's really important to think about we talked about return on investment, didn't me, but probably more important one is the return of your investment, you know, what's the risk to your capital, because there's no substitute, you know, there's no compensation, if you lose all your money, being able to get it back again, in the future, you know, you'd be a bad investor, you'll be hurt, you'll be damaged, and you'll lack trust yourself, and you lack trust and others. And consequently, it's a very volatile, really hard place for people to be. So you have to be able to manage risk, which reason why we say, you know, building wealth in multiple pillars makes more sense and putting all your eggs in any basket, even if it's a stock market basket. But if, obviously, one of the ways the industry encourages people to minimise the risk, and definitely I can see the value in it, is the principle of diversification. And that principle is, you know, it's always framed out of don't put all your eggs in one basket. And we hear that all the time. And nothing wrong with the principle. But the problem with diversification, it makes the assumption, of course, that you can't add any value. And in the stock market, it's probably true for the most part, you can't. So therefore, just understand how the market generally works over the long term. And for those of us who study these things, I'm more than happy to, to have another session, Chris, maybe a webinar because you need graphs and, and charts and things. But just to show there's a there's there's like an expectation of a risk reward payoff, when it comes to investing in the stock market. So stated differently, when whenever you invest in stock market, you'll always go through some kind of assessment, particularly for using an intermediate service like a an IFA, or a broker, there'll be some kind of process that says, What is your attitude risk. And that attitude to risk will normally play out in either a very simple questionnaire or some form of questionnaire. And that question and normally assigns the individual, a sort of the score on kind of one to 10, something like that, no can be different things. But let's say you know, one to 10, with one being low 10 being on. And by studying these things, understanding how the markets generally work, the lowest risk, funds will have predominantly cash. And the highest response will be higher risk equities, for example. So there's always a sort of a payoff from what what we discovered, by looking at the numbers is really the you there is a relationship between the two. But you don't get the if you take level, say you're an average return or an average risk score on a scale of one to 10, say five being right in the middle. And let me be simplistic just for the sake of this, I'm not saying this is true or accurate, simply illustrated, if the average expected return from somebody investing in a middle risk portfolio would be five, then the that be 5%, then if they double that risk, they don't get double return, because you're taking a much bigger risk of a potential before. So and we can see this very clearly when we start looking at some of the charts. So it's really important, you're looking at risk to understand the risk in the market. But to understand also, you don't need to sit and just watch the market rise and fall, there are some things that you can genuinely do, to de risk yourself as opposed to simply learn the market to ride its ups and it's downs, and you never know how you really going to feel until at some point when you need that money. And I get onto that one, and we talk about the accumulation. And so the answer to this process, then as to what are the things I can do that will help you minimise that risk. And

Unknown Speaker  19:43  
one thing you can do is, for example is you can lock in profits. So if you investing in the market, and you make money in the market, you can bank that money and invested in something that doesn't work in the same way as the market. So for example, so you make some good games, you have a really good return, you've invested 10,000, and you made a 10,000 profit or you've invested some money, you make 10,000 profit, you could leave 5000 in and take 5000 out and do something different with it. You could invest in alternative market, crowdfunding or lending. Also, the other things will maybe get too hard in this podcast crystal, the next one, when we talk about alternative markets. So you sort of banking as you as you go. And then as you take money out of that market, your can to correlating correlating means the way things work together, if you put it in a different market, then it's not going to work the same way as the market you were just in. So you're almost building yourself a level of risk protections that making

Unknown Speaker  20:50  
sense, almost like a hedge, would you say?

Unknown Speaker  20:53  
Yeah, it is a hedge. You know, the other way you can look at this is very simple. And I'm sure one of our trusted people, Jeremy will talk more about this, which is the way you can lock in gains or minimise your losses through something called stop loss. So instead of if we watch the market, and let me be very simplistic again, Chris, if you if you see how markets rise and fall, they tend to rise very slowly and fall very quickly. So you know, if you can picture that in your head, very slow, steady rise, yes, there are bumps, you know, a few bumps. And then it kind of falls dramatically. And we've seen that many times. And the big danger is that dramatic for and if you take in again, as similar imagination, if you imagine you know that's going to happen, it's going to happen sometime. I don't know when but it's going to happen. It's happened before it's gonna happen again. And you looked at that and you thought well hang on a minute. If I know I'm going to have a dramatic fall and a dramatic fall hurt me. How would I protect myself from that phone? Well, if you mentioned that fall line seeing it like a cliff face? Can you imagine you are a mountain near climbing that? What would you be doing to stop yourself from falling all the way to the bottom Chris,

Unknown Speaker  22:10  
you know, be tapping in some kind of harness or some kind of secure points where you can fall any further.

Unknown Speaker  22:17  
No. So you might fall a little bit. And you might be hurt to be you might be uncomfortable for a while. But you wouldn't be devastated. And this you can do in stock market and this is stop losses. So you just a very simple concept called stop loss sort of does what it says on the tin. It says if the market, you know, if you believe if the chance of a market going up, the average is 5%. And in a good year, you make 15. And in a bad or say 20 and a bad year, you'd lose 15. And we can show these tables separately, I think Christian to bring them more to life. But if we imagine that, then if the market was likely to fall by 15%, or 20%. And you think that's just a possibility, you could hammer in a little harness not as honest but a an anchor that says Well, if the stock market falls by 10% or more amount, you know, so you can have the market, you put an order in to get you out to the market. So yes, you might lose some money, but you're limiting your loss. Hence, word stop loss. These are just some of the and they're not difficult to learn. I mean, these are so simple to learn. And yet there, I don't I don't think I've met a fund manager or an IFA yet that talks about this, because, you know,

Unknown Speaker  23:45  
one of the things that

Unknown Speaker  23:48  
kind of worries me about it is these, these funds always have names, you know, and when you got a fund with a name, like UK equity fund, you have to invest in UK equity funds. So why what happens if UK equity funds fall dramatically? Your fund is called the UK equity funds, you've got to hold UK equities. So where's the counter correlation? Where's the stop loss in these things are not happening? When you just buy into a fund? If you say to me, yeah,

Unknown Speaker  24:17  
yeah, it's probably worth mentioning, I know typical investment you make money when it goes up. But if you do learn some slightly more advanced strategies around trading, which you've touched on there, then actually you can make money in a in a in a falling market as well. So you can can catch some profit on both sides beyond the

Unknown Speaker  24:33  
scope of today. But you know, and also you have to learn very much how those things work but stop losses very simple. In that can be taught. Certainly, you know, we talked about in a previous podcast, Chris, if somebody's serious about the stock market, they could make good stock market decisions and make and get all the necessary education support and connexion they need to learn this within 30 days. Yeah, this isn't likes work. This is a 30 day time frame that someone could learn enough to minimise their costs and minimise their risk.

Unknown Speaker  25:10  
talking today about why most investments are c r a p, we're halfway through Kevin. So let's look at what the A stands for.

Unknown Speaker  25:19  
Yeah, this is an interesting one, Chris, and this is the A stands for accumulation model. What the hell does that mean? Well, it means you know, when you buy into an investment, and you have the meeting with your IFA when the markets felt like they did in 2008. What did they say to you? When those things happen? It'll all be okay. In the long run. Right?

Unknown Speaker  25:42  
Okay. Yeah, right out in the market, right? Just Just hold out. And yeah, it will bounce back at some state.

Unknown Speaker  25:48  
That's exactly right. So this is this is a model known as the accumulation model, you simply just hang on. So they call it a buy and hold model. I call it the buying hope model. You buy funds, and you hope it all going to work out. Because you see the key thing about wealth. And as you think about this, and really reflect on what we've been teaching so far, wealth doesn't come from accumulating money. And then at one date in your life, you suddenly convert that money into cash flow, you create cash flow, as you go, you know, so the essence of wealth building is is owning assets, that flow cash, not owning assets that grow or fall or status the same and then a year, but they provide you with cash flow. And this isn't a model that's been taught. So if you think about the way most investments work is they buy and hold for the long term. And then at some date in the future, the money's then converted into money that individuals will spend.

Unknown Speaker  26:58  
Yeah, I mean, I was I was just thinking, when you're saying that, Kevin, you know, it hasn't worked out too bad for someone like Warren Buffett has that that buy and hold strategy,

Unknown Speaker  27:06  
or divine hold strategy for Buffett brilliant, because his business does that. So you know, his, his businesses there to make money in the long term. And they've got a very strong view about how they do that. So and also, they're buying institutionally, they're buying for the long term. Sure, but one of the biggest ways Warren Buffett makes money is not through the buying and holding of good equities, is by trading is by, you know, by allowing in the trades to take place. So he's got such a high stockholding of what we call a position on so many different high quality stocks that, you know, he generates premiums by essentially renting out his stock to other people who want access to it. So it's like, you know, having a property. So think about differently, if you had a piece of property, do you accumulate the value? Would you keep a property empty just to accumulate the value? Or do you create rental because

Unknown Speaker  28:03  
you won't create an income Absolutely. Second, second option,

Unknown Speaker  28:07  
right. So it's the same with investing. And Warren Buffett knows this, because he makes millions and millions and millions every year, on the trading of options, where his basically renting out his stock. So he's because he knows he's got great stocks. So he's holding them. And this is another way to think about it, by the way, you know, this whole process of not just accumulating, for the sake of holding onto somebody else's model, there's a way that you can accumulate, that is a reflection of you. And I can talk about that in a minute. But just before I've finished on that, you know, the important thing about wealth building is about cash flow. And the challenge with the market is is very difficult to create cash flow, unless you're doing something to create value for yourself, as Buffett does, you know, so the position you can take with cash flow is much more difficult. And that's why it's not really a great way to build wealth, it's a way to manage wealth you've already built, because it has got some great value terms of generally provides enough value, you can buy into the market up, you can protect yourself from the downside, you can make some money if you learn how to create cash flow in the upside, and the downside to trading. And of course, is very liquid. Whereas other assets that we get into other pillars or less liquid on the crystal less liquid in property, for example, you know, it's difficult to sell property quickly, is difficult to Sell a Business quickly, it's difficult to to create joint ventures then exit them quickly. So one of the huge value factors in the marketplace is highly liquid. But you see, most people don't need that liquidity. You know, you're if you're investing for the long term, you don't need the liquidity. So you can tie your money into a different philosophy, which could be you try you, you turn your investing into inflexion of you. So what I mean by that, okay, so, Chris, I'm a wealth builder. And one of the things I believe, which is really important in the wealth building process, particularly with with business, which is my favourite asset, but in any of the assets really, is this idea of income and cash flow that recurs. earning income recurring income recurring income. So if that's who I am as a person,

Unknown Speaker  30:44  
why would I invest in something that didn't

Unknown Speaker  30:48  
do that? only fair? I would say that diversification, but then that would be a just a smaller elements, certainly probably not your primary wealth building, pillar or focus.

Unknown Speaker  30:59  
Yeah, no, oh, that that's a that's a good point. It's not where I was aiming at, maybe I didn't explain myself well, so let me try again. If, as a person, I come from a place of high recurring income, then if I choose a percentage of my holdings and my wealth to be in the stock market, and I do have some money in the market, then I could choose to invest specifically under the low cost way in companies that reflect my beliefs. So those companies that have high degree of recurring income

Unknown Speaker  31:30  
at a dividend domain,

Unknown Speaker  31:33  
yes, or buying into companies where, you know, there's a natural expectation that the clients will and their customers will buy, and rebuy, and rebuy. And then you can buy companies then that do that. So instead of just simply being a reflection in a market, you're saying, this is a reflection of me as a person. So you know, I will look out for companies and I could do it this way, I choose not to, and I'll, maybe it's not good for me to mention what I invest in, because that's not helpful, because I'm not trying to give an opinion about me, because I'm very uniquely me. But, but I have a thought process, and I minimise my time, because I happen to chosen a method of investing in funds, that I think is a reflection, exactly of who I am as a person. So I've chosen a pathway to invest in the market. And that's very simple and easy for me to say, right, I've got a certain percentage of my money in the market. And I'm holding those for the long term as part of a diversify. And, and I know I can cash in and do those things whenever I want to, but and whether I choose to stop loss or not doesn't matter. It just means, you know, that's a reflection of me, well look at how many different people we've got and asked students now. So what if somebody was highly focused around green energy,

Unknown Speaker  32:59  
or highly focused around ethics,

Unknown Speaker  33:03  
you know, a new can, you can invest in specific funds, or you can invest in very, very tight and specific ETFs. Because ETFs are so easy and low cost to run, instead of being a giant fund. You know, like the footsie, for example, when you can really ethically control that you can zero in on something. And with an ETF, you can choose an almost bespoke almost into a very niche sector, that is a reflection of you. So, you know, the whole principle of investing is for it to be a reflection of who you are. When you say you're invested in something, if you take the word investment out the money side, if I say I'm heavily invested in the principles of wealth building, is that true? It is true. I'm invested in the principle. So it means it's fundamentally part of my DNA. So why wouldn't I invest in same way, you have very strong views, very strong principles, then you can choose to invest in a way that reflects them. So that becomes part of who you are not something that's forgotten, or something that you give to somebody else. And as part of their business and their mindset, which may not reflect yours at all, just making points. And

Unknown Speaker  34:19  
yeah, absolutely, I, you know, we travel on London Underground. And all the time now, I'm just picking up on the advertisements inside the tubes and seeing very much these examples of all different niches, where there's a new app where you can invest into this area. So I think, with technology now is just opening up that market so much more, isn't it?

Unknown Speaker  34:39  
Absolutely. And I think what's brilliant about technology, is it's allowing people to choose into something very specific niche for themselves in a way that didn't happen, you know, you and you can't do that, let's say, you know, most people will access their investments through the ISIS or three weeks their pension fund in the in workplace, that you don't get this sort of option. But, you know, you can choose so many different pathways to invest that you can have fun. And and therefore, you know, it doesn't have to be something that I hope it's better next year.

Unknown Speaker  35:17  
And, and also the starting point is very low cost for for these platforms. Now isn't that

Unknown Speaker  35:22  
remarkably low. And you know, when you're buying things, on very, very low cost, and you you're investing in what you want to invest in, then you know, and you know, you're investing some of your money for the longer term, and cost, you can also access these things regularly through, you know, saving money that you're making, either from rental property, if you can combine the pillars, you know, so we have lots of clients got rental income, and then they reinvest the rental income in something that's counter correlated to their property portfolio. See how all these things just interconnect Chris, and it isn't difficult. This is the thinking that's difficult, because most people come from a place, not of education. But being told this is how you invest into me. This is what you do. And it isn't what you do just it's what you've been told, is done, because it perpetuates the money and the accumulation buy and hold theory in the marketplace. And I'm not sure that's the right place for true wealth building students.

Unknown Speaker  36:27  
So we've covered cost, which was the sea, we've covered risk, which was the our accumulate just there. So that leaves us with the final pay Kevin.

Unknown Speaker  36:38  
And it's process, you know, the process of doing these things is so, so simple.

Unknown Speaker  36:47  
It really is remarkably simple. As soon as you start just to think about, well, how do I want to invest? What percentage of the money do I have to I want to invest? What are the different markets that I can invest in? What do I like about them? So you know, we're talking today predominate about the stock market? I think we've been talking quite a while. So we probably up to do alternative markets next time. But if it's just the stock market is, do I want to invest passively? Do I want to invest in a low cost way? Do I want to invest in a way that reflects who I am, once you know these things, and we can help with that process. And once you've got a few things, a few kind of parameters, do I want to invest with stop losses or not? Then you can you can learn that process within 30 days. And run your investments for a fraction of the cost that you pay a fortune for. For someone who teaches you This doesn't actually teach you just does it for you once sets it up once and then gets to plug a syphon into your funds for the rest of your life. I'm not sure that's right. Know, why not learn wealth building starts with education, why not learn a little bit about self reflect on who you are, learn a little bit about the way you can access the market, listen to some of our students, you know how they're investing, certainly don't invest lightning, invest like you, and you are uniquely you, as the listener, choose what you want. And if you want to be in a market choose the best way and the best pathway into that market. And let us guide you to the lowest cost way of getting in managing the process, and then getting money out when you need it, to invest in other assets, or to simply continue to keep your whole wealth and balance. Because once you've made that decision, so you decide to keep 10% of your money in the market for the sake of a number. If things do really, really well, then you can rebalance that. So you know you've made some money, you've now got 12% in the market, you can decide to bank that today present and put it somewhere else in a different market, or in one of the other pillars or to pay for the education to for you to learn about a new pillar. See how all these things are so interconnected? Chris, the whole essence of this is to not feel isolated and on your own. Or at the mercy of someone else who's just saying, This is the best way to do it, trust me, you know, that's not the way to do it, the way to do it is to stop to think lowest cost, lowest risk. Don't focus on just the accumulation model. Think about, you know, moving money to different places and seeing a balance in your overall wealth plan. And learn a process that we can share and teach with you. Certainly in less than 30 days, that you'd be confidently able to start investing your money in a way that is so much more better value for you in the long term, then giving it to so called experts, and paying them for the rest of your life. Think enough.

Unknown Speaker  40:02  
If there was one word, I think that sums this episode up, I think it's empowering. And I know it's a word close to your heart, Kevin but really is empowering people to just take some control to just understand a little bit more about this subject area and, and the benefits are a huge if someone does that.

Unknown Speaker  40:20  
That'd be great to hear from you know more of our students on how they're doing that. So that the perspectives they share with each other, you know, will will help you see things you don't see on your own. Because one of the things I'm noticing as we get more feedback from our community, Chris is how lonely people I don't mean lonely as in, isolated, you know, from other people, but in their wealth building, it's almost they've got to make all those decisions in their own head. They don't have the true trust of people around them to to help them just, you know, decipher what's right for them. And that's where I'd start with all of this is started with who you are. And then once you know who you are, you can choose the way to build wealth that reflects you, and not being told what to do.

Unknown Speaker  41:10  
Absolutely, we want to say thanks so much to all of the people in the wealth builds community and everyone who's been listening to wealth talk, because I know both you and I, Kevin every week we get comments from from more and more people just saying how much they're enjoying listening to the wealth talk podcast, and you know, actually taking action implementing some of these things that we're talking about. So, so thank you. And thank you to everyone who's been leaving reviews on iTunes as well, we're, you know, we're climbing the charts, we're getting more and more reviews every week. So if you haven't left a review, and you're enjoying the show, we'd really appreciate a few moments of your time to just share a few words on there. And of course, if you're not already a member of the wealth builders Facebook group, then you can head to wealth builders.co.uk forward slash Facebook, and we're over the thousand member mark. So come and join the party in them. Both you and I, Kevin were in there all the time answering people's questions and keeping people updated of of where we're both going to be and where you're speaking at future events as well.

Unknown Speaker  42:11  
You know, in final words here, I think it would be good to know, well, what would people like to learn? You know? So it's difficult, isn't it? When you're creating content as we are from the heart? It's difficult to know exactly. So what how do we take this to give the specific lessons to people? How do they want to do that? Because it's so you've heard there are so many different ways you can come at this from? So just be good to know. Yes, if you thought it was useful, great to know that, but then what would you need to know, to bed to take action, because that's the next step. So help us help you. Because we know how to do these things. And we've got so many hundreds and hundreds of thousands of of different ways and people that we can help give you access to more knowledge. But what we don't want to do is over well new so when you ready for the investment piece, if you're already an investor, just take 130 day period and say, This month, I'm going to nail my investment plan, then the next month the execution of it. So within two months, you don't you know, 90 days tops, you're done with what you want to do with your investment. So let us know what you need. Let us know what you want. We'll try and bring that to you.

Unknown Speaker  43:23  
Great. I think that's a wrap for wealth talk. 21 Thanks for your time today. Kevin really enjoyed that one and we'll catch up on the next episode.

Unknown Speaker  43:31  
Okay, we'll be talking about alternative markets. I think next time, Chris, I think we will.

Unknown Speaker  43:35  
I'll see you. See ya.

Unknown Speaker  43:41  
We hope you enjoyed today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership

Transcribed by https://otter.ai