Is International Diversification Worth It?

00:00:00.000 | (beeping)

00:00:02.160 | - Welcome back, Ask the Compound.

00:00:12.400 | Our email here is askthecompoundshow@gmail.com.

00:00:16.720 | We love all the questions.

00:00:17.600 | We love everyone in the live chats.

00:00:20.020 | Today's show is sponsored by Bird Dogs again.

00:00:22.440 | Birddogs.com/atc for Ask the Compound, obviously.

00:00:26.680 | Promo code ATC to get a free Tumblr.

00:00:29.880 | This week, Michael and I took a trip to Florida

00:00:32.960 | for a conference.

00:00:34.080 | Everyone there is in their stuffy suits and dresses

00:00:36.840 | and business attire.

00:00:38.240 | Michael and I are in Hawaiian shirts and bird dog shorts.

00:00:41.240 | I'm wearing a pair of bird dogs right now.

00:00:42.320 | Can you see these, Duncan?

00:00:43.160 | Look at, eh, eh.

00:00:45.040 | - Yeah, looks good. - The white ones.

00:00:45.880 | I don't know if I can pull off the word fresh anymore

00:00:49.120 | since I'm an early '40s dad,

00:00:50.960 | but that's the only-- - They're looking fresh.

00:00:53.040 | - They're very fresh.

00:00:54.080 | They're white.

00:00:54.900 | I love 'em.

00:00:56.320 | So the great thing about wearing these in Florida

00:00:58.080 | is it was like 88 degrees.

00:00:59.440 | It was very hot, and they're comfortable.

00:01:02.440 | So Michael and I had them at the beachside restaurant,

00:01:07.280 | you know, having a nice little drink,

00:01:09.000 | having a little lunch.

00:01:10.200 | - Miami Vice.

00:01:11.200 | - Yeah, walking around the beach.

00:01:12.680 | They're versatile.

00:01:13.560 | You can wear them anywhere.

00:01:14.560 | I wore mine in the pool.

00:01:15.980 | It's great.

00:01:16.820 | They're comfortable, they're stylish, they're versatile.

00:01:18.360 | Go to, remember, birddogs.com/atc

00:01:22.000 | and get that free Tumblr if you want

00:01:23.960 | for putting the promo code ATC.

00:01:25.240 | - Can I just throw in a quick,

00:01:27.300 | it's kind of almost a complaint about bird dogs,

00:01:29.660 | is I feel like they make me look too cool.

00:01:32.820 | I'm like, can I pull these off?

00:01:34.100 | I don't know if I can pull these.

00:01:35.460 | Like joggers, like I've never worn joggers.

00:01:37.100 | They look really cool. - You can't be a hipster

00:01:37.940 | anymore if you look too cool, right?

00:01:39.180 | - Yeah, I mean, yeah.

00:01:40.020 | It's hard. - I think it's--

00:01:40.860 | - It's a struggle. - It's okay.

00:01:41.940 | You moved out of Brooklyn to Connecticut.

00:01:43.500 | I think we're gonna allow it.

00:01:44.780 | - Yeah, okay, yeah, it makes sense.

00:01:46.900 | - All right, lots of questions this week again.

00:01:48.600 | I think our inbox each week

00:01:49.900 | is getting a little bit fuller and fuller.

00:01:51.540 | We're not getting exponential growth yet,

00:01:52.900 | but we got a ton to get to, so let's do it.

00:01:55.620 | - Okay, up first today we have,

00:01:58.780 | Ben showed the positive returns

00:02:00.180 | for U.S. equities over the long term,

00:02:02.180 | but how does the data look for global ex-U.S. performance?

00:02:05.400 | - Fair question. - Do you think,

00:02:07.660 | is this a gotcha?

00:02:08.480 | Are they trying to get you?

00:02:09.780 | Or are they just curious? - Maybe, well,

00:02:10.600 | I don't know if it, I don't know,

00:02:11.440 | that could just be, I hope it's curiosity.

00:02:13.140 | So I love to show the win probability of the stock market,

00:02:15.620 | depending on your time horizon.

00:02:16.540 | John, throw this chart up.

00:02:18.380 | I did this going back to 1926,

00:02:19.940 | and it just shows one month, one year,

00:02:22.420 | three, five, seven, 10, 15, 20 years.

00:02:25.080 | What's your probability of seeing a gain?

00:02:27.460 | Okay, so since 1926,

00:02:29.160 | the U.S. stock market has experienced positive returns

00:02:31.860 | 56% of the time on a daily basis.

00:02:33.900 | That's not that great, right?

00:02:35.640 | 63% of the time on a monthly basis.

00:02:37.540 | Go out to five years,

00:02:38.380 | and we're talking 88% of returns are positive.

00:02:40.920 | 10 years, it's more like 95%.

00:02:43.220 | And then 100% if you go out to a 20-year basis.

00:02:45.640 | Obviously, the usual caveats apply here.

00:02:47.820 | We're not taking into account taxes or fees or inflation,

00:02:50.580 | but still, that's a pretty darn good track record, right?

00:02:52.440 | There's never been a rolling 20-year period

00:02:54.640 | where U.S. stocks have been down.

00:02:57.240 | So my least favorite description of the stock market

00:02:59.600 | is that it's a casino.

00:03:01.000 | I hate this.

00:03:01.840 | I hate when people say that.

00:03:02.660 | Usually they say it when they lose money or it's down,

00:03:04.600 | or a stock goes down a lot.

00:03:06.920 | Not even close.

00:03:07.760 | The longer you play in a casino,

00:03:09.360 | the worse your odds are because the house has an edge.

00:03:11.520 | So the longer you,

00:03:12.360 | I have a pretty good blackjack system,

00:03:14.460 | but still, if I stay and play 72 hours straight,

00:03:17.600 | eventually I'm going to lose,

00:03:18.440 | and the house is probably going to win unless I get lucky.

00:03:21.000 | The stock market is completely different.

00:03:22.200 | It's the opposite of a casino.

00:03:23.440 | The longer you stay in the stock market,

00:03:25.520 | the better your odds are of walking away with a gain.

00:03:28.720 | Now, this doesn't guarantee the magnitude of a gain, right?

00:03:31.480 | And I can't guarantee that these exact figures

00:03:33.360 | will work going forward,

00:03:34.200 | but that's pretty good, right?

00:03:35.520 | I worked with plenty of huge institutional investors

00:03:37.480 | over the years,

00:03:38.360 | and they are obsessed with quarterly returns.

00:03:40.640 | What's our quarterly return against the benchmark,

00:03:42.200 | against our peers?

00:03:43.320 | And some of these endowments and foundations

00:03:46.120 | have perpetual time horizons.

00:03:48.480 | They, it's basically endless,

00:03:49.960 | and they care about quarterly returns,

00:03:51.160 | which never made sense to me.

00:03:52.000 | So I think the ability to think and act for the longterm

00:03:54.560 | for individual investors,

00:03:55.800 | that's your huge equalizer, right?

00:03:57.600 | Patience is the biggest equalizer in all of finance.

00:04:00.200 | So back to our original question here.

00:04:01.480 | Is this just a US phenomenon?

00:04:02.840 | Does this work internationally as well?

00:04:04.440 | Well, my original chart goes back to 1926.

00:04:07.160 | We only have good data going back to 1970

00:04:09.280 | for international stocks.

00:04:10.480 | So I have the MSCI World XUS.

00:04:12.680 | 50 plus years, that's good enough for me.

00:04:14.160 | So John, throw up my table.

00:04:15.560 | This is the World XUS Index versus the S&P.

00:04:18.480 | Again, monthly, one year, five, 10, 15, 20 years,

00:04:21.180 | and it shows the win probabilities.

00:04:22.760 | Now, over monthly and one year returns,

00:04:25.400 | the S&P is a little better, right?

00:04:26.960 | 63% versus 60% for monthly.

00:04:29.760 | One year, S&P since 1970 is up 80% of the time.

00:04:33.320 | World XUS is up 70% of the time.

00:04:34.920 | But look at five, 10, 15, 20 years.

00:04:37.300 | The 15 and 20 years are both 100 for each.

00:04:39.240 | They've never had a down period

00:04:41.320 | over 15 or 20 years since 1970.

00:04:44.040 | 10 year returns, you actually have a better win percentage

00:04:47.200 | for World XUS than S&P.

00:04:48.800 | S&P is up 95% of the time over 10 year periods since 1970.

00:04:52.780 | The World XUS is up nearly 100%.

00:04:55.180 | It barely happened, 99.6%.

00:04:57.100 | Also a little higher for five years.

00:04:58.300 | So I think some people might be surprised to hear this

00:05:01.180 | just because of the fact that U.S. stocks

00:05:02.860 | have done so much better over the past 15 years or so.

00:05:06.380 | Obviously, again, probability versus magnitude,

00:05:08.720 | that's a different thing.

00:05:09.920 | A lot of people ask me about

00:05:14.060 | the international versus U.S. thing.

00:05:15.420 | And is international diversification worth it?

00:05:17.580 | U.S. stocks make up 60% of global market cap.

00:05:21.300 | We get 40% of our revenue from the S&P overseas.

00:05:24.260 | Why do I need international stocks?

00:05:25.560 | That's fair.

00:05:26.600 | And the annual returns for each

00:05:28.820 | have been better for the U.S. going back to 1970.

00:05:30.500 | U.S. stocks are up 10.5% per year in that time.

00:05:33.260 | International stocks, more like 9%.

00:05:35.380 | But most of that outperformance has come since 2013,

00:05:40.380 | basically, so I looked at this for a blog post recently.

00:05:44.180 | From 1970 to 2012, annual returns were 9.7% per year

00:05:48.140 | for U.S. stocks, 9.6% for international stocks.

00:05:51.260 | Basically identical.

00:05:52.440 | U.S. stocks have done so much better,

00:05:53.620 | so all their outperformance has come since then.

00:05:55.880 | I did do a blog post about this,

00:05:57.300 | so John, throw up my next table.

00:05:59.140 | I kind of looked at the cyclicality of this.

00:06:00.940 | Which one wins when?

00:06:02.380 | And I cherry-picked the dates here,

00:06:03.740 | but you can see U.S. or international stocks

00:06:05.380 | outperformed pretty handily in the 1970s.

00:06:07.860 | Early 1980s, U.S. took the baton.

00:06:10.060 | Late 1980s, there was a massive outperformance

00:06:13.100 | for international stocks, thank you, Japan.

00:06:15.380 | '90s, the U.S. took it back,

00:06:16.700 | and then we've gone back and forth since,

00:06:18.180 | and then the latest period was just a really long cycle

00:06:20.260 | of outperformance for U.S., which is 2008 to 2021.

00:06:24.120 | So I understand why some U.S.-based investors

00:06:27.360 | are only comfortable holding U.S. stocks.

00:06:28.900 | And I think if you do that,

00:06:29.740 | you're probably gonna be fine over the long term.

00:06:31.620 | You feel safer, but I don't know.

00:06:34.140 | Here's one of my favorite all-time charts

00:06:35.900 | from Credit Suisse, their year-end returns yearbook,

00:06:40.620 | of the relative sizes of world stock markets

00:06:42.500 | from 1900 to 2023.

00:06:45.180 | And I've used this one plenty before,

00:06:46.660 | but U.S. was 15% of global stock market in 1900.

00:06:50.500 | Now they've eaten the rest of the world like Pac-Man,

00:06:52.260 | and they're close to 60%.

00:06:53.940 | The winners write the history book,

00:06:55.100 | so it makes sense that we focus so much of our time

00:06:57.100 | and energy on U.S. stocks.

00:06:59.380 | But I don't know, can you guarantee me

00:07:01.700 | that the U.S. is gonna do this again?

00:07:03.860 | Probably not.

00:07:04.700 | I don't think they're gonna become 120% of global market cap.

00:07:07.060 | I don't think it works like that.

00:07:08.660 | Check my math on that,

00:07:09.500 | but I don't think that's how it works.

00:07:10.780 | But what's to say another country or countries

00:07:12.820 | couldn't close this gap this century?

00:07:14.700 | I would almost be shocked if they didn't,

00:07:17.180 | right, if the U.S. didn't become a little smaller

00:07:19.340 | and these other countries didn't come up a little more.

00:07:21.260 | I mean, Great Britain was 24% in 1900.

00:07:24.580 | They were, you know, like the fall of the Roman Empire here.

00:07:27.820 | It wouldn't shock me if some other country came up.

00:07:29.520 | So I think that's the whole point of diversification.

00:07:31.260 | It's not perfect, but I think spreading your bets

00:07:33.580 | between other geographies around the world

00:07:36.860 | is sort of more of a risk management tool,

00:07:39.100 | even if it doesn't boost returns all that much.

00:07:42.700 | - Well, and we get this question sometimes

00:07:44.460 | from people who are not based in the U.S.,

00:07:46.620 | not to brag, but we have a pretty big audience,

00:07:48.620 | you know, that's international.

00:07:49.860 | - It's true.

00:07:50.680 | - We have a listener named Rob

00:07:52.860 | who stopped by a while back from Australia,

00:07:55.260 | and I was talking to him,

00:07:56.260 | and one of the things we were talking about

00:07:57.300 | is like what his portfolio looked like versus like mine,

00:08:00.100 | right, and he had quite a lot of U.S. exposure, actually,

00:08:03.420 | but not as much, you know, and yeah,

00:08:06.300 | he had companies and things that I'd never even heard of

00:08:08.860 | or thought about.

00:08:09.700 | So that's something that's kind of interesting.

00:08:11.640 | - 2.2%, that's the thing.

00:08:13.140 | Most other countries have the same home bias that we have,

00:08:16.020 | and their stocks, their whole stock market

00:08:19.240 | is like the size of Apple, basically.

00:08:20.880 | So imagine taking your whole portfolio

00:08:22.340 | and putting it in Apple and hoping for the best.

00:08:24.740 | I think that's the point of spreading your bets globally

00:08:28.360 | is that I think it's more of a risk reducer than anything.

00:08:32.100 | - Yeah, yeah, makes sense.

00:08:34.340 | - All right, do another one.

00:08:36.100 | - Okay, up next we have a question from Jeff.

00:08:38.840 | Should I quit using my bank that pays 0.1% interest

00:08:42.180 | for my banking and emergency fund

00:08:44.460 | and start using a money market fund that earns 4.5%?

00:08:47.860 | My wife and I have good job security and higher education

00:08:50.740 | and usually invest extra cash or spend it on our young kids

00:08:53.780 | rather than sit on a bloated emergency fund earning nothing.

00:08:58.380 | However, 4.5% is a lot more attractive than 0.1%

00:09:02.700 | while money hangs out between paydays

00:09:04.220 | and billing cycles, et cetera.

00:09:05.700 | Appreciate any thoughts.

00:09:07.180 | - This is a pretty drastic spread here.

00:09:09.540 | - Yeah, and this is an easy one.

00:09:11.060 | No one, and I mean, no one should be earning 0.1%

00:09:13.700 | on their savings account right now, right?

00:09:15.540 | This should be illegal for banks to pay this little.

00:09:17.700 | Anything under 4% right now is pretty terrible.

00:09:21.000 | You should be earning somewhere in the four to 5% range,

00:09:23.340 | low fives probably at the high end for emergency savings.

00:09:26.180 | So anything, online savings account, money market,

00:09:28.340 | T-bills, CDs, short-term bonds,

00:09:30.460 | anything like that is paying four to 5% right now

00:09:32.700 | 'cause the Fed has jacked up short-term rates.

00:09:34.420 | Easy decision.

00:09:35.260 | If a bank is ripping you off and for whatever reason

00:09:38.540 | you haven't moved your money,

00:09:39.620 | open a new account somewhere else.

00:09:40.800 | Money will actually earn some income.

00:09:41.940 | To be fair, I understand why some people

00:09:44.900 | maybe are still a little confused

00:09:45.940 | about the short-term yield situation

00:09:47.100 | if you haven't been paying attention.

00:09:48.580 | Not everyone pays attention to this stuff

00:09:49.900 | every day like we do.

00:09:50.740 | So John, do a chart on of the three-month T-bills.

00:09:53.260 | So this is since the start of the turn of the century.

00:09:56.180 | This is three-month T-bills are a good proxy

00:09:57.800 | for what you can earn on your cash

00:09:58.740 | and things like savings accounts or money markets.

00:10:00.420 | Rates were really high in the 1990s,

00:10:02.100 | five to 6% at the end of the decade there.

00:10:05.540 | The tech bust happened and rates fell off a cliff,

00:10:07.140 | getting back down to like 1% for a few years.

00:10:09.940 | And rates slowly but surely work themselves

00:10:11.620 | back up to 5% or so by 2007, 2008.

00:10:14.960 | 2008 financial crisis, we go to zero

00:10:17.060 | and are there for like seven years, right?

00:10:19.060 | Then we slowly but surely go back up a little bit,

00:10:21.220 | just over 2% until 2018.

00:10:23.500 | They go back down a little

00:10:24.420 | and then you can see another cliff drop,

00:10:26.680 | Wile E. Coyote style in 2020 for the pandemic.

00:10:29.900 | So we've had this huge roller coaster

00:10:32.700 | that goes from up down,

00:10:33.980 | but then we sort of level off for a while at zero.

00:10:36.020 | So I think it makes sense why some people

00:10:37.700 | might still think that that 0%

00:10:39.300 | is the way that things work,

00:10:41.020 | but definitely get your cash yields off the floor.

00:10:43.780 | Find an account that pays four to 5%.

00:10:46.340 | But once you get off the zero bound,

00:10:47.580 | then don't go chasing yield all the time.

00:10:49.620 | Like, you know, I'm earning 4.75%,

00:10:52.300 | but I could be earning five.

00:10:53.240 | I think just getting off the 0% is the biggest thing there.

00:10:56.580 | And then probably it's more trouble than it's worth.

00:10:58.420 | But yes, you have to get off of 0%.

00:11:00.660 | That's a layup right now.

00:11:03.120 | - Yeah, I attained five,

00:11:05.540 | but I wasn't happy with the process to get me there.

00:11:08.820 | And it involved a bank collapsing in the process.

00:11:12.340 | - Okay, yeah.

00:11:13.500 | So make sure your bank's been around

00:11:15.420 | for more than like three months, unlike Duncan's,

00:11:18.460 | and has a name that doesn't sound like

00:11:20.180 | it was made up by Bernie Madoff.

00:11:22.420 | - Right, yeah, probably good advice.

00:11:24.420 | - Then you're good.

00:11:25.260 | But yeah, get off of zero.

00:11:26.460 | This is the easiest question we'll get today.

00:11:29.340 | - Cool, yeah, I like that. - Next one.

00:11:31.260 | - Okay, up next we have a question from Connor.

00:11:34.220 | I'm finishing my residency training

00:11:35.860 | after doing med school and residency

00:11:37.540 | for the past seven years.

00:11:39.020 | So I have about $230,000 in student loan debt.

00:11:42.020 | However, I'm pursuing public student loan forgiveness,

00:11:45.420 | which will forgive my loans in about 6.5 years.

00:11:47.860 | - You knew that one.

00:11:48.820 | - I know that one because I've read a lot about that.

00:11:51.420 | We're in the process of purchasing our first home

00:11:55.300 | after being pre-approved for a $600,000 mortgage.

00:11:58.540 | We only have about $35,000 in cash,

00:12:01.060 | but I'm about to start my new job

00:12:02.540 | that pays about four times my current income.

00:12:04.780 | I've heard that physician mortgages,

00:12:06.340 | which that's new terminology to me,

00:12:08.740 | are great given that they don't require a down payment.

00:12:10.900 | However, is there any consequence

00:12:12.600 | of putting even a little money down

00:12:14.500 | towards the down payment,

00:12:15.500 | or should I just try to pay extra on the mortgage

00:12:17.540 | once I start making more money?

00:12:19.240 | We plan to live in this house for five to seven years

00:12:21.340 | before we would consider a move.

00:12:23.540 | All right, 230K, sounds kinda like a lot.

00:12:25.940 | John, do a chart on here of student loan debt.

00:12:28.140 | I'm gonna bust some myths here.

00:12:29.740 | This is from the Brookings Institute.

00:12:32.380 | 2% of all borrowers owe $200,000 or more,

00:12:35.460 | but they make up 14% of the balance of all student loans.

00:12:38.940 | Now, if you go to 100K, 6% of borrowers owe 100K or more,

00:12:42.820 | but that makes up 1/3 of the entire debt load.

00:12:44.620 | So obviously, student loans are not,

00:12:46.260 | like, it is an issue,

00:12:48.220 | but you see these stories about people who went into debt

00:12:50.700 | and owe six figures,

00:12:52.420 | and maybe they got, like, a philosophy degree

00:12:54.220 | that they can't do anything with.

00:12:55.380 | Most of those people went to med school or law school

00:12:58.700 | or getting their master's,

00:12:59.820 | and if you were a person who didn't

00:13:01.500 | and you got that much debt,

00:13:02.500 | then you got some really bad advice, unfortunately.

00:13:04.940 | - Or they got an MFA that they really didn't need.

00:13:07.580 | - There you go, yeah, something you didn't need.

00:13:10.140 | So, obviously, sounds like a lot of money,

00:13:12.400 | but for a doctor, considering the high income potential,

00:13:14.780 | like, you're coming out of residency,

00:13:16.700 | this is a good investment.

00:13:18.500 | It sounds like you're not gonna be paying it anyway, right?

00:13:19.820 | So what do you say, Duncan?

00:13:20.660 | Public service loan forgiveness?

00:13:22.900 | - Oh, yeah. - This is basically,

00:13:24.500 | the idea is if you work for some sort of non-profit

00:13:26.940 | or the government has to kind of sign off on the place

00:13:29.300 | you work, you make 120 consecutive payments,

00:13:32.660 | and then your student loans will be forgiven.

00:13:34.100 | So that's not a bad deal for that high of a debt load.

00:13:37.940 | So that sounds like you've got that figured out,

00:13:40.700 | so you're willing to do non-profit work.

00:13:43.340 | Physician loan, also not a bad deal.

00:13:44.940 | So the way this works, Duncan,

00:13:46.140 | is banks know doctors will have a high income,

00:13:48.020 | but coming out of residency,

00:13:49.220 | they not a high amount of saved money

00:13:51.420 | because they were in residency and not earning very much,

00:13:53.400 | and they have huge debt loads.

00:13:54.900 | So banks know that this is probably money good,

00:13:57.780 | and they're willing to offer this low down payment

00:14:00.500 | or no down payment mortgage.

00:14:02.860 | And so that's not a bad deal,

00:14:04.860 | 'cause they know they're working with someone

00:14:05.860 | who's gonna have a high income, right?

00:14:07.260 | So I did some spreadsheeting based

00:14:08.700 | on the numbers kind of provided.

00:14:10.860 | So $600,000 mortgage,

00:14:12.540 | let's say they go all the way up there

00:14:13.580 | since that's what they were pre-approved for.

00:14:15.420 | I mean, you get a pre-approval range.

00:14:17.140 | Let's be honest, everyone goes to the high end of the range.

00:14:19.580 | No one's gonna go to the low end of the range.

00:14:21.340 | It doesn't work like that.

00:14:23.340 | No money down at 7% mortgage rates,

00:14:25.180 | which is what we hit this week,

00:14:26.260 | which is ouch, ouch, ouch, 7% mortgage rates.

00:14:29.440 | That's a monthly payment of around $3,900 and change, right?

00:14:33.160 | Almost close to 4,000.

00:14:34.920 | If you put your full 35,000 in savings as a down payment,

00:14:38.260 | now we're looking at monthly payments of more like 3,750.

00:14:41.220 | So you'd say like $240 a month, something like that.

00:14:44.680 | I don't think the down payment makes sense here.

00:14:46.980 | It would only be like a 5% or 6% down payment anyway

00:14:49.500 | with that much money if you're going to 600K.

00:14:51.980 | Doesn't really provide you much relief

00:14:53.380 | in terms of monthly payments.

00:14:54.260 | Plus you're gonna have a ton of costs

00:14:55.460 | in the moving process,

00:14:56.300 | closing costs and moving costs and inspection fees

00:14:59.500 | and all this stuff.

00:15:00.640 | I would hang on to that money for the flexibility of it.

00:15:03.580 | And if you don't pay it down

00:15:04.460 | and you wanna put it back into the mortgage at some point,

00:15:06.300 | you can still do that and do a principal payment.

00:15:08.700 | I guess the biggest consequence of not putting much down

00:15:11.580 | is that if the price goes down

00:15:13.340 | and you wanna sell or move out,

00:15:14.920 | then you're gonna have to eat that loss probably.

00:15:17.180 | But even if, and then 6% in equity

00:15:19.660 | gets wiped out fairly quickly if prices fall as well.

00:15:22.020 | So I prefer the flexibility of that savings on hand

00:15:25.200 | as opposed to putting it down,

00:15:26.580 | especially if it's such a small down payment.

00:15:28.540 | If you can just borrow and not have to pay,

00:15:30.700 | you can always pay it, like you said,

00:15:31.860 | pay it down later once your income gets a little higher.

00:15:33.900 | My only other comment here is be careful on the temptation

00:15:36.020 | to go crazy on lifestyle creep.

00:15:37.380 | Obviously you've been living like a resident for a while now

00:15:40.380 | and four times in your income

00:15:41.860 | is gonna feel pretty darn nice.

00:15:43.860 | But I just say, make sure you don't go

00:15:45.220 | completely nuts right away.

00:15:46.380 | - Can they go like two times their standard of living?

00:15:49.860 | - Just build in a decent savings rate once,

00:15:51.820 | just because you're used to living like a resident, right?

00:15:53.860 | You don't wanna completely just change.

00:15:56.300 | I would build in like slowly, but surely work into it

00:15:58.820 | as opposed to just going nuts right away.

00:16:00.620 | I also highly recommend the book,

00:16:02.020 | "The White Coat Investor" by Jim Dolley.

00:16:04.620 | He has a podcast by the same name.

00:16:05.880 | Actually, I was on a few months ago

00:16:06.820 | if you wanna try to go find that.

00:16:08.060 | It's written by a doctor for a doctor.

00:16:09.580 | It's all about the finances surrounding young doctors

00:16:11.380 | and how to build wealth.

00:16:12.540 | Highly recommended for someone in your situation

00:16:14.300 | understand student loans and investing and personal finance

00:16:16.660 | and the intricacies of being a doctor and dealing with that.

00:16:19.660 | And also congrats.

00:16:21.780 | I cannot imagine the amount of hard work that is involved

00:16:23.780 | in going through med school and getting a residency

00:16:25.900 | and all that stuff.

00:16:26.820 | So good for you.

00:16:29.000 | - I can because I watch "Scrubs."

00:16:30.660 | I feel like I have a decent idea.

00:16:33.660 | - I love that show.

00:16:34.860 | That is a highly underrated.

00:16:36.320 | Oh, it was so good.

00:16:37.180 | I pretend like the last season didn't happen,

00:16:38.680 | but that is a great show.

00:16:40.860 | - Yeah, and Zach Braff was on the "Rich Roll" podcast

00:16:43.180 | recently, it was great.

00:16:44.140 | It was good.

00:16:44.980 | - They don't make 'em like that anymore.

00:16:45.900 | All right, let's do another one.

00:16:47.420 | - All right, up next we have a question.

00:16:50.940 | Is this one, is this from Chris?

00:16:53.060 | Yep, this one is from Chris.

00:16:55.380 | "Not to brag, my wife and I--"

00:16:56.820 | - So not to brag of the week, big time.

00:16:59.420 | - I think so, yeah.

00:17:00.820 | "Not to brag, my wife and I acquired a $1 million,

00:17:04.140 | "1,000 square foot condo in the Boston area

00:17:06.540 | "when rates were less than 3% with 20% down

00:17:10.420 | "due to an unexpected liquidity event."

00:17:13.260 | That sounds like an early 2000s band.

00:17:15.780 | I don't know, but.

00:17:17.040 | "Due to an unexpected liquidity event,

00:17:19.660 | "we can afford to pay off the mortgage in full.

00:17:21.440 | "However, this seems foolish to do

00:17:23.180 | "with the six month treasury yield at 5%.

00:17:25.600 | "We are 29 and 30 and combined annual income of $300,000.

00:17:29.640 | "We have discussed the possibility of starting a family

00:17:31.720 | "in the next five years and would need to increase

00:17:33.420 | "the size of our home to accommodate

00:17:35.000 | "the potential addition/additions to our family.

00:17:40.520 | "We would also want to move to Cambridge, Massachusetts.

00:17:44.380 | "Would it make more sense to pay off our current mortgage

00:17:47.520 | "in full in order to be debt free,

00:17:49.540 | "or rent out our current condo and use

00:17:51.320 | "the unexpected liquidity for a down payment

00:17:53.380 | "on a place in Cambridge?"

00:17:54.800 | - All right, yeah, easily wins the order for not to brag.

00:17:57.860 | Let's bring in someone who has experience

00:17:59.220 | in both financial planning and the Boston real estate market.

00:18:02.220 | Benny Markets, AKA Ben Coulthard.

00:18:06.380 | - Benjamin C. Markets.

00:18:07.660 | - So Ben, I was in Boston, I guess last year,

00:18:11.120 | and visited you, and you kind of mentioned

00:18:12.680 | the real estate market or the rental market there

00:18:14.800 | is a little pricey, so I want to hear your thoughts.

00:18:18.120 | John, first throw up the Case-Shiller of Boston.

00:18:20.160 | I want to ask for your thoughts on this.

00:18:21.400 | So this is the last 10 years,

00:18:23.180 | Case-Shiller National Home Price Index

00:18:24.720 | versus Boston Home Price Index.

00:18:27.240 | Boston has fallen behind nationally in the last few years.

00:18:29.560 | That actually surprises me.

00:18:31.200 | I'm sure there are neighborhoods that have done much better,

00:18:32.680 | but what do you think about this being a Boston guy?

00:18:36.160 | - Yeah, it's fallen behind, but it is still not great, Bob.

00:18:39.680 | I chose this question for a few reasons.

00:18:42.420 | So yeah, number one, he starts with not to brag.

00:18:45.380 | Chris, I know you're a real one.

00:18:47.060 | I see you, and frankly, if anyone is not aware

00:18:50.380 | of that reference, they should subscribe

00:18:51.900 | to Animal Spirits Pod.

00:18:53.640 | Number two, yes, Boston guy.

00:18:55.620 | I'm in the town right now, Charlestown,

00:18:58.220 | for those who don't know.

00:18:59.740 | My friend's cousin is Ben Affleck's sister's brother-in-law.

00:19:03.020 | That's actually not true, but my fellow Bostonians

00:19:05.540 | go to the front of the line.

00:19:06.480 | The last reason, this is the easiest damn question

00:19:09.720 | out of the 150 in the Q bank, all right?

00:19:11.960 | You basically answered it yourself,

00:19:13.280 | and I do respect that he's asking it

00:19:15.480 | because it's a huge decision, right?

00:19:17.080 | Like, even if you're 95% sure,

00:19:19.800 | it's still good to bounce it off an objective third party.

00:19:22.400 | - Wait, wait, wait, hang on.

00:19:23.240 | I don't think it's as easy as you think.

00:19:24.200 | So you think, so what is your answer?

00:19:26.400 | Let's hear it.

00:19:27.240 | I don't think it's as easy as you think.

00:19:28.680 | - For one, yeah, I'm in a similar boat as Chris.

00:19:30.920 | So like me and my soonish-to-be fiancee, not to brag,

00:19:34.360 | at least I think, we rent this charming trash heap

00:19:38.440 | and are half looking to buy a place.

00:19:41.240 | But because interest rates have doubled

00:19:43.200 | since our man Chris locked in

00:19:45.080 | that beautiful 3% interest rate,

00:19:47.720 | not only can I not afford to buy in Charlestown or Cambridge,

00:19:50.880 | I can barely afford a piece of dog shit

00:19:53.360 | stuck to the bottom of my shoe in Medford, all right?

00:19:56.640 | I want Chris to view this sub-3% mortgage,

00:19:59.520 | which I assume is locked in for the long run,

00:20:01.200 | as the best freaking investment he has ever made in his life.

00:20:04.340 | Like it's literally like more traffic.

00:20:07.460 | - How much is he gonna, to break even

00:20:10.060 | on a thousand square foot apartment at a million dollars,

00:20:12.800 | he's gonna have to get like what, $4,500 a month,

00:20:15.200 | $5,000 a month?

00:20:16.280 | Is that doable?

00:20:17.760 | - Well, yeah, I was gonna get to the rental,

00:20:20.240 | I was gonna get to the rental thing,

00:20:21.280 | but like going back to the investment,

00:20:22.920 | like this asset on this mortgage rate

00:20:26.500 | is literally more beneficial to him

00:20:28.200 | than if he put 20K in NVIDIA in 2009.

00:20:30.720 | Like I wouldn't-- - I agree, hang onto it.

00:20:33.120 | - I would challenge Chris to a duel to the death

00:20:36.160 | for a chance to take his mortgage.

00:20:38.160 | And he's gotta cherish it-- - Whoa, whoa, whoa, hold on.

00:20:40.400 | Yeah, come on, man. - To quote the great

00:20:41.440 | Billy Madison. - Whoa, aggressive.

00:20:42.540 | - Obviously, these people are as late 20s, early 30s,

00:20:46.120 | they're in an unbelievable spot.

00:20:47.000 | I don't know if it was an inheritance or stock options

00:20:49.480 | or what, how they got the money,

00:20:51.120 | but the fact that they could,

00:20:52.580 | they have the ability to either pay down this mortgage,

00:20:54.440 | which was what, 800 grand,

00:20:56.160 | or use it on something else in Cambridge,

00:20:59.060 | which I guess is a nice spot to,

00:21:01.800 | either way, they're probably going to be fine.

00:21:03.680 | My only concern would be,

00:21:05.200 | you hold on to the other one as a rental

00:21:06.960 | and you buy this new one,

00:21:08.140 | are you overextending yourself in Massachusetts real estate

00:21:11.080 | in terms of concentration?

00:21:12.440 | - Right, so there's that and like, yeah,

00:21:14.720 | if we don't know the dollar amounts

00:21:15.920 | and like what exactly is going on

00:21:17.640 | in the overall financial plan,

00:21:19.460 | that's why plans are important,

00:21:20.880 | it's hard to like say definitely.

00:21:22.520 | So I noticed one thing, it says that,

00:21:26.160 | it sounds like the vision for the starting a family

00:21:28.280 | is still a few years away.

00:21:29.600 | Like, you know, interest rates have doubled,

00:21:32.500 | the home prices have hardly budged.

00:21:34.560 | I'm not a market timer guy,

00:21:36.000 | but like probably not the most glorious time

00:21:38.540 | to take on a big mortgage

00:21:39.960 | if you don't absolutely have to.

00:21:40.800 | - That I agree with it.

00:21:41.720 | Yeah, they have some time to wait things out.

00:21:45.420 | They're not in a,

00:21:46.260 | they don't have to be in a hurry to move

00:21:47.280 | and they can put this money into T-bills

00:21:50.420 | or something while they wait.

00:21:51.940 | - Right, and the rental thing too,

00:21:53.980 | like, yeah, it'd be great to rent that other one out

00:21:57.140 | and ship it on the new monthly payments,

00:21:58.380 | but like being a landlord isn't zero work.

00:22:01.500 | Like, you'll probably have to deal

00:22:02.540 | with some 23-year-old punk

00:22:03.860 | who's like spilling natty lights on your hardwood floor

00:22:06.020 | and like flicking boogers on the walls.

00:22:07.860 | 10 months later, you're gonna have to find another one

00:22:09.260 | of those 23-year-old punks.

00:22:10.340 | Like, it's not like as easy as passive income, you know?

00:22:14.340 | - Yes, I agree.

00:22:15.340 | So--

00:22:16.180 | - I just learned in the chat too

00:22:17.620 | that Cambridge is actually a town.

00:22:19.600 | I've been there, I've been to Harvard's campus before.

00:22:21.700 | I thought that that was just like a neighborhood of Boston.

00:22:25.280 | - Yeah, it's beautiful.

00:22:26.560 | It's where I would want to raise a family, frankly.

00:22:29.380 | But yeah, like back to the like living situation,

00:22:31.980 | like despite the liquidity, like if I were him,

00:22:34.860 | I would just, I would enjoy the city,

00:22:36.940 | particularly enjoy that sub 3% mortgage,

00:22:39.220 | and then, you know, park the liquidity in a T-bill,

00:22:41.620 | like maybe half, you know,

00:22:43.340 | the amount to lock in a five-handle

00:22:44.900 | and then, you know, put the rest in like a money market

00:22:46.860 | or a high yield with a four-handle.

00:22:48.500 | Clip thousands in yields, you know--

00:22:50.860 | - Taking time.

00:22:51.700 | - You're doing nothing until you're ready

00:22:52.820 | for that big purchase.

00:22:53.700 | - Either way, they're in a pretty good position,

00:22:55.340 | but you're right.

00:22:56.160 | Laying down the 3% mortgage early

00:22:58.540 | is especially when you can get five in a T-bill.

00:23:00.980 | There's no reason for that right now.

00:23:02.420 | It makes no sense.

00:23:03.580 | - Exactly.

00:23:05.120 | - Perfect.

00:23:05.960 | All right, let's do another one.

00:23:06.780 | - Cool.

00:23:08.020 | Okay.

00:23:08.860 | By the way--

00:23:09.700 | - You're not bitter about the Boston real estate market,

00:23:12.680 | right?

00:23:13.520 | Just making sure.

00:23:14.340 | - Yeah, I am not bullish on the Boston.

00:23:15.580 | Well, I just think like, yeah, as you would say,

00:23:17.900 | you could drive a truck through the bid-ask spread.

00:23:19.740 | Everyone's hanging out in their 3% mortgages

00:23:21.460 | and like people like myself's affordability

00:23:23.140 | got cut in half.

00:23:23.980 | So it's just, yeah, it's a stalemate right now.

00:23:27.220 | - All right.

00:23:28.060 | All right, last but not least,

00:23:31.820 | let's do a question from Owen.

00:23:35.320 | Is it a good idea to start children

00:23:37.300 | off with a financial planner or advisor

00:23:39.240 | so they develop good financial habits

00:23:41.000 | and understand the power of investing?

00:23:42.740 | What about when they turn 18?

00:23:44.620 | Also on this, this is like a very nubile question,

00:23:47.200 | but maybe just explain the difference

00:23:48.960 | in a financial planner and advisor

00:23:51.040 | if there is one for our young viewers

00:23:52.920 | who might not know that.

00:23:54.760 | - That's basically the same thing.

00:23:56.280 | - Yeah, tomato, tomato there.

00:23:58.040 | - You see people always kind of like say one or the other,

00:24:00.060 | so I was just curious.

00:24:00.900 | - And some people spell advisor with an E,

00:24:02.240 | some do it with an O.

00:24:03.080 | I don't know why.

00:24:04.120 | - I know, I'm an O guy, big time.

00:24:05.680 | - I'm a big advisor guy.

00:24:07.560 | - Yeah, I'm an advisor.

00:24:08.720 | - I mean, my gut response is no,

00:24:11.520 | I don't think there's any reason as an 18 year old

00:24:13.280 | that you need a financial advisor,

00:24:16.120 | but maybe you can talk about like how to better your life

00:24:19.040 | as a young person financially.

00:24:20.840 | I mean, almost like a financial life coach,

00:24:22.260 | but there's just, yeah, financial advisor, no.

00:24:27.080 | - Yeah, that's my answer too.

00:24:28.640 | Like, even if his teenage daughter

00:24:30.700 | already had two commas in her account,

00:24:32.440 | I'd say that she really just needs like a few ETFs

00:24:35.000 | and maybe a good CPA, but I get this one a lot,

00:24:39.400 | and I wanna start like broadly.

00:24:41.960 | - In terms of like clients ask you,

00:24:43.800 | do my kids need an advisor basically?

00:24:47.100 | - Yeah, I mean, there's 35 year olds

00:24:49.400 | who don't need an advisor,

00:24:51.520 | and there's 85 year olds who don't need an advisor.

00:24:53.280 | It's not like, I think of it as like

00:24:56.100 | when your brain is starting to cry uncle,

00:24:58.880 | and crying uncle comes in different forms.

00:25:01.120 | It's, oh my God, we just had a baby.

00:25:03.200 | Like, I don't even have time to deal with this anymore.

00:25:05.020 | It's, I got a promotion and had a baby.

00:25:07.340 | I don't even know how I'm gonna deal with all this,

00:25:09.200 | or it's exiting a small business,

00:25:10.600 | starting a small business, equity comp payday,

00:25:13.400 | inheritance, like really any kind of like OMFG moment.

00:25:16.720 | - It's a life event or your financial situation

00:25:20.800 | becomes so complex,

00:25:21.720 | or you just don't have the time to deal with it

00:25:23.600 | that you need to outsource to someone else.

00:25:25.360 | - Correct, correct.

00:25:26.440 | It's, yeah, you said it, outsource your brain power,

00:25:29.800 | your time, and or your anxiety to a third party.

00:25:32.920 | Like that's the time.

00:25:33.960 | So this does vary for everyone.

00:25:36.040 | It's just, it's not a dollar or like an age threshold.

00:25:39.060 | It is a time or complexity threshold.

00:25:42.140 | So back to Owen's daughter,

00:25:44.000 | maybe if she was a freshman at Harvard

00:25:45.640 | writing algorithms on her dorm room window,

00:25:47.360 | and about to drop out to become the founder

00:25:48.840 | of the social network,

00:25:49.760 | then she might be at a complexity threshold

00:25:52.340 | that would warrant an advisory service.

00:25:55.880 | By the way, Jesse Eisenberg is more Mark Zuckerberg to me

00:25:58.480 | than Zuck himself.

00:25:59.320 | Like Jesse is Mark.

00:26:00.440 | - He's a much better Mark, yeah.

00:26:03.120 | - So he's so much better than Mark.

00:26:04.400 | But I think like Owen's question

00:26:05.680 | was more about like giving his daughter wisdom

00:26:07.820 | and setting her on the right path.

00:26:09.080 | And for that, I do have a few ideas.

00:26:11.320 | Option one, if you, Owen, have an advisor

00:26:15.240 | and they aren't willing to spend

00:26:16.480 | like the occasional 30 minutes with her,

00:26:18.480 | like I do with my clients' children,

00:26:20.520 | then might I suggest firing they ass.

00:26:22.920 | Like if they can't fit that in,

00:26:25.280 | then either your family isn't enough of a priority

00:26:28.520 | or they don't have any capacity, which both aren't great.

00:26:33.400 | Option two, there are hybrid human robo advisors that exist.

00:26:37.400 | One of which is ours, it's called Liftoff.

00:26:39.840 | This type of service is great for someone

00:26:41.360 | who doesn't really know where to start.

00:26:43.200 | Like maybe they need to talk to someone once in a while,

00:26:45.760 | certainly be better off

00:26:46.680 | without a Robin Hood type portfolio.

00:26:49.360 | And if she wants to start with a hundred bucks,

00:26:51.360 | myself, one of the other four advisors

00:26:53.360 | who oversee that platform would be happy to chat with her.

00:26:56.660 | My last idea, I actually kind of got this

00:26:59.760 | from TCAF last week, from Chris Davis,

00:27:01.960 | who does this with his nieces and nephews.

00:27:04.360 | I think incentivizing her to read

00:27:07.040 | a great beginner investment book is where I'd start.

00:27:10.000 | Like I wouldn't expect her to crack open

00:27:12.360 | the intelligent investor on her own just for fun.

00:27:14.840 | But maybe be like, "Hey, money is really important in life.

00:27:17.560 | "I'll reward you with a hundred bucks

00:27:19.600 | "if you read this book

00:27:20.440 | "and tell me three things that you learned."

00:27:22.360 | Like that might light the spark

00:27:23.760 | and maybe she even chooses to invest a hundred bucks.

00:27:25.640 | You never know.

00:27:26.480 | - Yeah, no, I agree.

00:27:28.240 | Get 'em on the right path.

00:27:29.660 | And the thing is, as a parent,

00:27:31.720 | that's almost your job at that point, at 18.

00:27:33.920 | - Right. - Right?

00:27:34.760 | Unless they have a complex financial situation

00:27:36.680 | and you're talking to them about a trust

00:27:38.160 | they're gonna inherit someday,

00:27:40.000 | or they have a job right away

00:27:41.240 | that's gonna pay them a lot of money,

00:27:42.680 | it's probably just trying to instill in them

00:27:44.680 | some good habits if they haven't gotten them yet.

00:27:47.240 | But that's, yeah, as a parent,

00:27:49.040 | that's probably your job at that point.

00:27:50.520 | - Yeah, another good option, have 'em watch "The Compound."

00:27:53.480 | You know, get 'em started young.

00:27:55.200 | More like toddlers watching "The Compound."

00:27:57.000 | - Send us a, yeah, send us your address.

00:27:59.920 | I'll send you a couple of copies of my book.

00:28:01.480 | - I don't even expect,

00:28:02.320 | I was gonna ask you, smarter Ben,

00:28:03.800 | like what do you think is the best beginner book

00:28:05.680 | to start with?

00:28:06.520 | Like I think of Morgan Housel's "The Psychology of Money."

00:28:09.960 | I think maybe "Money Game" by Adam Smith.

00:28:12.840 | And frankly, like I think like you and Majuli's books

00:28:15.320 | are maybe like closer to 201 instead of 101, you know?

00:28:18.400 | - Yeah, that's when you're like in the working world.

00:28:20.720 | And yeah, 'cause 18,

00:28:21.560 | you still have a lot of this stuff ahead of you.

00:28:24.320 | But yeah, that's the cool thing is these days,

00:28:26.720 | I'm guessing most kids don't even like books anymore.

00:28:28.720 | They want podcasts, or they want, you know, blog posts,

00:28:32.400 | or they probably want something that's easier to digest.

00:28:35.320 | So maybe that's the way to get 'em is, you know,

00:28:38.120 | listen to a couple of finance podcasts

00:28:39.480 | and figure out the kind of thing

00:28:41.240 | that works for you in that.

00:28:42.080 | And just get interested.

00:28:42.960 | I think that's the point,

00:28:43.920 | is just getting interested in this stuff from a young age

00:28:46.080 | to kind of understand that someday this money stuff

00:28:48.940 | is going to be important for me.

00:28:50.360 | - I think Michael Lewis books are great

00:28:51.760 | for just general interest in like business

00:28:53.640 | and tangential kind of investing stuff.

00:28:55.120 | - Don't read "The Big Short."

00:28:56.200 | No, do not read "The Big Short."

00:28:57.940 | - I'm already thinking "Flash Boys."

00:28:59.760 | "Flash Boys" is one of my favorite.

00:29:01.120 | That one made it like really fun.

00:29:02.920 | - I think "The Big Short" probably lost more money

00:29:04.720 | than people lost in the housing market in 2008

00:29:06.940 | because people thought they could short stuff

00:29:08.340 | and predict the end of the world.

00:29:09.920 | But no, but you're right.

00:29:11.320 | He's good, Doug.

00:29:12.240 | But yeah, I agree.

00:29:13.080 | Just getting the interest in them is,

00:29:15.360 | and maybe you could do it together, right?

00:29:17.120 | And better understand and put on animal spirits

00:29:20.280 | every Wednesday morning when you're driving them to school.

00:29:22.840 | - Yeah, and pay her a hundred bucks to do it too.

00:29:25.200 | It'll be better money spent than, you know,

00:29:27.560 | whatever else.

00:29:29.140 | - Yes, but yeah, not easy.

00:29:30.820 | Great question.

00:29:31.760 | - Lots of good ones today.

00:29:35.240 | - Yes, Ben, last time I saw you,

00:29:36.760 | you were looking through your DraftKings profile,

00:29:39.760 | betting on every NBA game.

00:29:41.160 | I just wanna make sure we're right-sizing those positions

00:29:45.420 | and we're not using a future down payment

00:29:47.760 | on a Boston 300 square foot, right?

00:29:52.000 | - Yes, yes, we're not.

00:29:53.880 | I would say overall, things are going weak to quite weak.

00:29:57.600 | I mean, my performance is correlated to Boston sports,

00:30:00.560 | which used to be a great thing,

00:30:01.660 | but now we're overvalued.

00:30:03.400 | - So you have a home country bias in your gambling?

00:30:06.400 | - Massive home country bias.

00:30:08.040 | And I mean, the Celtics, they just can't get it done.

00:30:10.080 | They've peaked.

00:30:11.240 | Like the second that Grant Williams

00:30:12.640 | got in Jimmy Butler's face in game two,

00:30:14.160 | I could see the $50 series bet that I had on them

00:30:16.360 | just evaporate before my eyes.

00:30:18.960 | - At least you're right-sizing your positions though.

00:30:20.160 | $50 is fine. - Right, exactly.

00:30:22.400 | I do have a few more nuggets of wisdom.

00:30:23.920 | So even if you pick a winner,

00:30:27.040 | and this goes for investments too,

00:30:28.600 | you'll never be satisfied.

00:30:29.760 | You'll wish you had put more.

00:30:31.180 | I took Jon Rahm to win the Masters at plus 850,

00:30:34.040 | meaning if you put a hundred bucks, you get paid out 850.

00:30:37.340 | Too bad I only put $5 on it.

00:30:39.400 | Like you're just never gonna be satisfied.

00:30:42.400 | You get overconfident, you bet more,

00:30:44.040 | and then you get whacked.

00:30:45.760 | - That's why you don't put your whole paychecks

00:30:47.400 | into sports gambling, right?

00:30:49.680 | - Exactly.

00:30:50.520 | I stand by that it's a great reminder.

00:30:52.960 | It's a great distraction

00:30:54.240 | from the actual bulk of your investments.

00:30:56.120 | 75% of my net worth is in index funds.

00:30:58.460 | 15 is in BIL for a down payment.

00:31:01.360 | Maybe 9% is in individual stocks like Nvidia,

00:31:04.080 | which again, I put a thousand into Nvidia in 2017.

00:31:07.440 | I can't even enjoy the 12X

00:31:09.100 | 'cause I'm just pissed about how little I put into it.

00:31:11.140 | Like even if you win, you're still upset.

00:31:13.780 | So whatever, I just drive myself insane

00:31:15.760 | with a tiny portion. - Not to brag.

00:31:17.500 | - And you know, let the rest is gravy.

00:31:19.940 | - Give yourself a back-headed compliment.

00:31:21.900 | - Yeah, I love it.

00:31:23.900 | - That's right.

00:31:24.720 | And guess what?

00:31:25.560 | I will say I'm taking the nuggets to win the championship.

00:31:27.740 | Jokic doing this stuff from Three Point Line.

00:31:31.100 | Yeah, they're probably gonna sell it a premium,

00:31:32.380 | but I'm taking them.

00:31:33.500 | - All right, don't quit your day job.

00:31:35.140 | Remember, email us, askthecompoundshow@gmail.com.

00:31:38.300 | Thank you to Benny Markets for coming on.

00:31:39.780 | Thanks you to Duncan as usual.

00:31:41.620 | Remember, birddogs.com.

00:31:43.700 | ATC is the code.

00:31:45.380 | We'll see you next time.

00:31:46.780 | - See you, everyone.

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Is International Diversification Worth It?

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