How Do You Invest 100% Of Your Money in Stocks?

00:00:00.000 | (projector whirring)

00:00:03.080 | - Welcome back to Ask the Compound,

00:00:12.960 | where we take a week off, but the questions never do.

00:00:15.560 | We got a bunch more good ones today.

00:00:17.000 | Today's show sponsored by our friends at Bird Dogs.

00:00:20.120 | Duncan, today we're talking about diversification,

00:00:21.680 | one of my favorite topics.

00:00:23.440 | I like the diversification that Bird Dogs can apply.

00:00:26.560 | - I was waiting to see what you were gonna do with that.

00:00:28.480 | - Yeah, I've been out on the lake a lot lately,

00:00:31.760 | like riding bikes with the kids,

00:00:33.800 | and these are the kind of shorts that you can take anywhere.

00:00:35.640 | I wear 'em at the beach, I wear 'em to the pool,

00:00:38.160 | I wear 'em on the boat.

00:00:40.020 | They also have different kinds,

00:00:41.040 | so I like to have diversification among my Bird Dogs.

00:00:43.240 | So some of them are plain,

00:00:44.600 | some of them have nice patterns

00:00:46.360 | when I wanna feel like going crazy a little bit

00:00:48.760 | and rockin' out a little bit.

00:00:50.240 | So, really like the Bird Dogs.

00:00:52.680 | They're very comfy, they're very stylish.

00:00:55.480 | BirdDogs.com and BirdDogs/ATC.

00:00:59.400 | BirdDogs.com/ATC, you get a free tumbler, right?

00:01:01.960 | Yeti-style tumbler, pretty cool.

00:01:03.440 | - Right, yeah.

00:01:04.320 | I gotta get me some of those really cool design ones.

00:01:07.040 | I've just got some navy blue ones,

00:01:08.820 | and I've got some camo ones.

00:01:11.040 | - Listen, I don't mind wearing a floral print here,

00:01:14.040 | but I have some floral print Bird Dogs that are very nice.

00:01:19.760 | People like them, I get a lot of compliments on those.

00:01:22.200 | All right, let's do a question.

00:01:23.320 | - Nice.

00:01:24.160 | Okay, so up first today we have a question from Connor.

00:01:27.240 | I'm a 34-year-old with a high risk tolerance.

00:01:29.520 | All of my investment accounts are 100% stocks.

00:01:32.080 | The one thing I have a hard time

00:01:33.320 | finding a tried and true answer on

00:01:34.680 | is how to best allocate my investments

00:01:36.560 | among large-cap, mid-cap, international,

00:01:38.800 | emerging markets, et cetera.

00:01:40.600 | I'm not looking to get the highest return possible, per se,

00:01:43.380 | although that would be nice.

00:01:44.960 | Rather, I'm looking to have a well-diversified portfolio

00:01:47.400 | that gives me long-term returns of 7% to 10%.

00:01:50.600 | I've always utilized the following allocation,

00:01:52.880 | and I'm guessing they mean annualized, obviously.

00:01:55.680 | 33% U.S. large-cap, 17% U.S. mid-cap,

00:01:59.320 | 16% U.S. small-cap, 20% developed international,

00:02:03.000 | and 14% emerging markets.

00:02:05.400 | Does this seem about right to you?

00:02:06.680 | I'd love to know what you think about,

00:02:08.960 | how you think about your stock allocation

00:02:10.600 | and what you utilize as a good benchmark.

00:02:12.840 | - Well, if they want a total return of 10%,

00:02:14.520 | then we'll just put them in hedge funds.

00:02:16.000 | (laughs)

00:02:16.840 | I can't promise anything when it comes to future returns,

00:02:21.280 | but a global benchmark for the stock market

00:02:24.000 | is actually pretty straightforward.

00:02:25.160 | The world stock market is a good starting point.

00:02:27.280 | So I broke down the Vanguard

00:02:29.040 | World Total Stock Market Index Fund, VT.

00:02:31.480 | So John, pull up the first one.

00:02:33.160 | This is just the breakdown between geographies.

00:02:35.120 | So United States is roughly 60%.

00:02:37.000 | International developed markets is like a third.

00:02:39.440 | Emerging markets is a little less than 10%.

00:02:41.480 | So Conor here is actually pretty close to this.

00:02:45.480 | Do the next one, John.

00:02:46.320 | This is small, mid, large-cap

00:02:48.500 | of the same World Stock Market Index Fund,

00:02:50.940 | large caps, a little over 70%.

00:02:52.560 | Mid caps, like 20.

00:02:53.480 | Small caps, again, a little less than 10.

00:02:55.920 | One more, do the next one for VTI.

00:02:57.520 | This is the US version of this.

00:02:59.300 | It's basically the same thing as the world.

00:03:01.720 | A little over 70% large, 20% small,

00:03:04.100 | or 20% mid, 8% small.

00:03:06.140 | So it's pretty close.

00:03:06.980 | And so if you look at Conor's portfolio here,

00:03:09.680 | it's, I mean, he's plus or minus 5% for all of these.

00:03:12.960 | So actually pretty darn close.

00:03:14.480 | Now, I'm not saying that,

00:03:15.800 | like you have to have the global weightings

00:03:18.000 | when it comes to diversified portfolio.

00:03:20.240 | I think the global market cap is a good starting point

00:03:22.880 | just to see where you're different from the actual market.

00:03:24.640 | 'Cause the market is what everyone collectively holds.

00:03:27.100 | So if nothing else,

00:03:28.320 | you can use that as the jumping off point

00:03:30.160 | and then use it for performance attribution

00:03:32.160 | or just to see where your bets are being made.

00:03:33.800 | Like I'm going way above and beyond here, way below here.

00:03:37.320 | Am I comfortable with that?

00:03:38.880 | Now, many investors,

00:03:39.700 | especially US-centric investors would assume the S&P 500

00:03:43.120 | or maybe a total US stock market index fund

00:03:45.480 | would be the benchmark of choice.

00:03:47.360 | The US makes up 60% of the pie,

00:03:48.800 | but probably gets 99% of the financial media coverage.

00:03:52.360 | And I guess that's probably makes sense.

00:03:55.160 | So I looked the top 25 holdings

00:03:57.720 | in the Vanguard World Stock Market Index Fund.

00:03:59.480 | How many do you think are foreign companies, Duncan?

00:04:01.200 | If you had to guess.

00:04:02.480 | Outside the US, listed somewhere else.

00:04:04.380 | - Out of how many?

00:04:08.560 | - 25.

00:04:09.400 | - Four.

00:04:11.760 | - That's a pretty good, yeah, it is four.

00:04:13.440 | Four total out of 25.

00:04:14.840 | The first one is Taiwan Semiconductor at like 13.

00:04:16.940 | So the top 10 holdings in the World Global Stock Market Fund

00:04:20.600 | are the same as the S&P 500, basically.

00:04:23.180 | So America just dominates the stock market.

00:04:26.520 | I do, however, think there's still room for diversification

00:04:28.800 | if you're gonna invest your entire portfolio in stocks.

00:04:31.160 | I know it seems like the S&P 500

00:04:32.720 | always outperforms everything,

00:04:33.840 | but you really don't have to go back that far

00:04:35.400 | to find a time when the S&P 500

00:04:36.960 | got just shellacked and underperformed.

00:04:39.160 | So John, let's do a chart on.

00:04:40.180 | This is the total returns

00:04:41.240 | for the first decade of this century.

00:04:43.480 | This is large cap, mid cap, small cap US,

00:04:46.000 | and then international developed and emerging markets.

00:04:47.840 | And this is 2000 to 2009.

00:04:49.720 | Total return for the S&P 500 was down 9%.

00:04:53.320 | You lost a little bit more than 1% per year

00:04:55.080 | and you had 250% corrections to show for it.

00:04:57.640 | Mid caps and small caps were both up almost 90%.

00:05:00.220 | International developed outperformed the US

00:05:02.200 | by a healthy margin.

00:05:03.640 | And then emerging markets just knocked it out of the park.

00:05:06.000 | And this was a horrible time to be a US investor.

00:05:09.600 | It was a great time to diversify.

00:05:11.340 | Now, if we look at the next decade, 2010 to 2019,

00:05:15.440 | obviously the S&P 500 came back.

00:05:17.160 | Emerging markets went from first to worst.

00:05:19.480 | Mid cap and small cap actually did pretty well again.

00:05:21.360 | International developed lagged again.

00:05:23.960 | But it's kind of interesting.

00:05:25.600 | So if you put it all together

00:05:26.440 | and do these first two decades in this last chart, John,

00:05:29.540 | the S&P 500 from 2000 to 2019

00:05:34.440 | was actually fourth place out of these five asset classes.

00:05:37.400 | Small and mid caps did the best.

00:05:39.360 | Emerging markets actually outperformed from 2000 to 2019,

00:05:42.520 | which might surprise some people.

00:05:44.160 | Now, some of this has to do with the start and end dates.

00:05:46.040 | My favorite saying here is that

00:05:48.080 | if you want to win any argument about performance

00:05:50.320 | in the markets, just change your start and end dates.

00:05:53.300 | You can take this one off, John.

00:05:55.080 | So I could change the start and end date

00:05:56.440 | and show that the S&P did better in these different periods.

00:05:59.440 | But maybe that's my point,

00:06:00.440 | is that you just never know when certain asset classes

00:06:03.320 | or markets or geographies or market caps

00:06:05.080 | are going to outperform

00:06:06.680 | or when they're gonna knock the cover off the ball

00:06:08.160 | or a shirk out or whatever.

00:06:09.000 | So that's why I think diversification is important,

00:06:11.400 | even if you're gonna be all in the stocks.

00:06:12.920 | I think, you know, could you, I mean,

00:06:15.400 | if you get to the point where you're thinking,

00:06:16.920 | should I do 2% more here or 3% less here?

00:06:20.280 | I think you've probably already won the game

00:06:21.560 | in terms of asset allocation.

00:06:22.540 | As long as you can stick with it, you're fine.

00:06:23.780 | But it seems like this, Conor, is on the right track here.

00:06:27.560 | - Yeah, yeah, it sounds like it.

00:06:28.680 | With EM, that last chart,

00:06:30.980 | you would think that if you're taking that much risk,

00:06:32.720 | you would expect a little more outperformance

00:06:35.480 | over the S&P.

00:06:36.720 | - Well, it's just gotten crushed these past 12,

00:06:39.860 | pretty much since 2008, it has been the S&P.

00:06:42.040 | But I used the S&P 600 and 400 here

00:06:45.520 | for the small and mid caps.

00:06:46.760 | And they've done better than most people would have assumed.

00:06:49.920 | So yeah, the diversification,

00:06:51.360 | it seems like it hasn't worked,

00:06:52.400 | but if you zoom out a little bit, which I like to do,

00:06:55.140 | it's done pretty darn good.

00:06:56.680 | All right, next question.

00:06:58.440 | - Okay, up next, we have a question from Amy.

00:07:02.120 | Like Ben, I'm one of the oldest millennials,

00:07:03.960 | just turned 40 this year.

00:07:05.520 | - Backhanded compliment of the day.

00:07:07.640 | - Yeah, my husband and I make good money, six figures.

00:07:11.120 | I'm a lawyer and he's in finance.

00:07:13.840 | But I also have $100,000 in student loans from law school.

00:07:18.140 | We have a high income,

00:07:19.080 | but not enough financial assets just yet.

00:07:21.440 | So I don't think we qualify for a financial advisor.

00:07:24.000 | But I have a lot of financial questions

00:07:25.700 | as we transition into middle age.

00:07:27.360 | Sorry, Michael.

00:07:28.240 | How do we, they're really in the, yeah.

00:07:31.360 | I mean, they know our shows.

00:07:32.640 | So good job, Amy.

00:07:33.800 | Thanks for watching.

00:07:35.360 | How do we know if we're on the right track

00:07:37.360 | with retirement savings is question one.

00:07:39.720 | Second question, how much do we set aside

00:07:41.960 | for our two kids 529 plans?

00:07:43.840 | Third question, should I pay off my student loans

00:07:46.520 | or keep investing in my 401k plan?

00:07:48.640 | That's a popular question as of late.

00:07:51.000 | And they say, I feel like we're doing well

00:07:52.560 | for people our age,

00:07:53.400 | but I have no idea how to gauge our progress.

00:07:55.180 | Any thoughts?

00:07:56.440 | - All right, so this is the middle age question

00:07:58.360 | where you go from, okay, we've started saving,

00:08:00.480 | we're getting our life together.

00:08:01.320 | Now we have financial planning questions.

00:08:04.040 | So let's bring in a financial advisor

00:08:06.280 | who focuses on millennials.

00:08:07.680 | Doug Bonaparte from Bonafide Wealth.

00:08:09.760 | - Hey, Doug.

00:08:10.920 | - Hey, guys.

00:08:11.840 | - One of the best advisors in the country.

00:08:14.240 | - That's what they say.

00:08:16.820 | - That's the rankings, you can't argue with those.

00:08:20.120 | Doug, you focus explicitly on millennials

00:08:23.320 | and you've been going through this transition

00:08:26.260 | with them as well, where when you're just starting off,

00:08:28.160 | it's setting up the right accounts and getting saving.

00:08:30.360 | And some people are overwhelmed with that,

00:08:32.600 | but that seems like the easy part.

00:08:33.800 | The hard part is when you get

00:08:34.760 | to these financial planning questions.

00:08:36.440 | And I do think it's kind of a misnomer

00:08:38.000 | that people think, well, I don't have a million dollars

00:08:41.280 | or $2 million or $5 million.

00:08:42.880 | So a financial advisor is not for me.

00:08:45.280 | And maybe in the old days, that was the case

00:08:47.800 | where you had to have a certain minimum,

00:08:49.960 | but there are many different business models these days

00:08:52.760 | and many people that can work with someone

00:08:54.580 | who has a high income and is going to have assets one day

00:08:57.560 | and has questions, but you can still find an advisor.

00:09:01.200 | So you've dealt with these kinds of clients.

00:09:02.960 | So I'm curious to hear your thoughts

00:09:04.520 | on dealing with a situation like this.

00:09:07.520 | - Yeah, man, you nailed it.

00:09:10.120 | There are so many, not just myself,

00:09:12.280 | but so many amazing colleagues that work with

00:09:15.160 | not just older millennials here,

00:09:17.600 | I like to call it us geriatric millennials,

00:09:20.560 | but you have advisors catering to Gen Z.

00:09:23.800 | I mean, you have babies offering...

00:09:26.280 | Fine, no, just kidding.

00:09:27.120 | You don't have infantile financial advisors yet.

00:09:29.820 | But you reach this point where it's kind of a good problem

00:09:34.120 | to have, right?

00:09:34.960 | You've reached a certain amount of success

00:09:36.960 | and you're like, "Look, my free time."

00:09:38.880 | I always describe the best time to figure out

00:09:42.160 | whether you need a financial advisor

00:09:43.840 | is when your free time has gone down so much

00:09:46.840 | because your responsibilities have gone up so much.

00:09:49.840 | You have a couple of kids, you're balancing your career,

00:09:52.520 | you're knocking 40, you're entering peak earning year.

00:09:55.680 | So you're super, super busy,

00:09:57.360 | stretched thin in almost every part of your life.

00:10:00.000 | And it does suck to think that

00:10:02.440 | you don't have access to a qualified professional

00:10:04.960 | simply because you don't have enough money

00:10:06.960 | for them to manage.

00:10:08.240 | Let's throw that out the window right now.

00:10:11.800 | As I just said, there are lots of qualified professionals

00:10:15.160 | to help you here.

00:10:16.160 | - So I think your point that you make is good

00:10:18.340 | about being stretched.

00:10:19.760 | We both have young kids.

00:10:20.700 | We know how life can get busy,

00:10:23.160 | but it's outsourcing the decisions

00:10:26.140 | and also outsourcing the worries in some ways.

00:10:28.600 | Because a lot of these questions that they ask in here,

00:10:31.880 | they're not really black or white.

00:10:33.480 | They're kind of exist in a shade of gray.

00:10:35.160 | And so I think some people at a certain point

00:10:36.760 | just want someone to help them.

00:10:38.600 | Like help me make a decision and come up with a plan.

00:10:41.040 | Even if I know that there's probably

00:10:42.320 | three or four good answers here.

00:10:44.240 | And there's not one answer that's gonna be perfect,

00:10:46.240 | but help someone understand my situation

00:10:48.800 | and then help me execute this actual plan.

00:10:53.240 | - 100%.

00:10:54.440 | A great financial advisor or planner

00:10:56.920 | is going to help you make

00:10:58.160 | the best financial decision possible for you.

00:11:01.040 | Where sometimes there's only one way to do it, right?

00:11:04.480 | You gotta go get your will,

00:11:07.280 | you gotta do your basic estate planning documents.

00:11:09.000 | Like go get it done.

00:11:10.000 | Versus, hey, let's talk about what your investment style is.

00:11:12.640 | And in this particular question,

00:11:14.360 | they're asking about goal priority.

00:11:16.600 | And that is where should I put the first

00:11:18.920 | and last dollar of available savings?

00:11:20.840 | I have multiple goals, right?

00:11:22.400 | It could be saving for a home, retirement,

00:11:24.080 | the kids going to college,

00:11:25.520 | and other stuff we haven't even brought

00:11:27.560 | into the equation here.

00:11:29.160 | And that's where things start to get a little bit complex

00:11:31.800 | and only emphasizes the need

00:11:33.880 | to actually go through formal financial planning.

00:11:36.680 | That is the system that helps you figure out

00:11:40.360 | how to allocate your free cash.

00:11:43.200 | You have to also have some sense of ownership

00:11:46.280 | over what's most important to you.

00:11:48.040 | It's not my financial life I'm solving for.

00:11:50.760 | It's the client's.

00:11:51.880 | If they had told me,

00:11:53.200 | making sure that we achieve what we,

00:11:56.240 | the parents here or the husband and wife

00:11:58.840 | or whatever the structure is,

00:11:59.800 | that we achieve financial independence

00:12:02.680 | above sending our kids to college,

00:12:04.880 | the advisor's gotta show them how to go about doing that.

00:12:09.000 | Answering that question's critical

00:12:11.280 | towards the allocation of that money.

00:12:13.240 | So financial planning is hands down the tool

00:12:16.040 | that's gonna bring you through retirement planning,

00:12:18.040 | college education planning.

00:12:20.200 | The last one about student loans versus 401k,

00:12:24.280 | I think actually is a little bit more technical

00:12:26.440 | of how to go about allocating than really goal priority,

00:12:30.200 | although you still need to understand

00:12:32.040 | which is most important to you.

00:12:33.600 | But I think about that question probably like you do, Ben,

00:12:36.640 | what do we expect in terms of a consistent

00:12:39.480 | or long-term rate of return

00:12:41.320 | on investing in a 401k or any other type of account

00:12:44.640 | versus what's the interest rate on that loan, on that debt?

00:12:48.320 | And are we gonna be better off

00:12:50.240 | paying down an eight, nine, 10% loan?

00:12:53.360 | Well, can we get eight, nine, 10% consistently

00:12:56.760 | in the market?

00:12:57.600 | At eight, yeah, we're in an interest rate environment now

00:13:01.940 | where it's not so clear cut or becoming more clear

00:13:05.400 | that paying down expensive debt is the way to go, right?

00:13:08.240 | - Yeah, it was easier when rates were a little lower,

00:13:11.040 | that question, I agree.

00:13:12.760 | I love your idea on goal priority

00:13:14.700 | because that is one of the biggest jobs

00:13:16.400 | of financial advisors, that it's kind of,

00:13:19.480 | you can't really define it very well,

00:13:21.040 | it's not quantifiable, but that this goal priority thinking

00:13:24.200 | in terms of like what actually matters to you.

00:13:26.720 | And those are the hardest questions

00:13:27.940 | for some people to answer sometimes.

00:13:29.480 | And then, yeah, you're right,

00:13:30.920 | it's figuring out a plan to hit those.

00:13:33.160 | David in the chat, I just want you to know,

00:13:34.800 | said the rule number one for picking a financial advisor

00:13:36.880 | is finding someone with a great shirt.

00:13:38.560 | And before we got on here, Doug informed us

00:13:41.040 | that these are called camper shirts, which I didn't know.

00:13:43.040 | So now you learned something.

00:13:44.120 | I thought I was the GQ expert here,

00:13:46.080 | but Doug is schooling us on fashion.

00:13:47.480 | - We are rocking camper T-shirts apparently, yeah.

00:13:50.200 | - You're the real fashion expert, but yeah, I guess maybe.

00:13:53.920 | - You'll receive my consulting invoice in the mail shortly.

00:13:57.200 | - Yeah, all right, let's do another question.

00:13:59.360 | - Okay, up next we have a question from Adam.

00:14:02.400 | How do you factor in RSUs for budgeting?

00:14:04.920 | And RSU stands for restricted stock unit.

00:14:07.960 | - You're getting them Duncan.

00:14:08.920 | - Yeah, we don't count them all in our budget

00:14:12.220 | and it works much tighter than reality.

00:14:14.720 | Should we?

00:14:15.560 | Either way, what is a good budget scheme

00:14:17.080 | for someone in a very high income bracket?

00:14:19.440 | A 50, 30, 20 needs, wants savings isn't working for us,

00:14:23.160 | particularly on things that are automated or fixed,

00:14:26.160 | like mortgages.

00:14:27.520 | What's a reasonable clothing budget or vacation budget?

00:14:31.200 | That's what makes this too difficult.

00:14:33.080 | - So this is interesting because, so they're in there,

00:14:36.520 | on paper, they're probably more wealthy

00:14:38.760 | than they feel in the income that they're receiving.

00:14:40.840 | 'Cause they know that those stock units

00:14:42.480 | are coming at some point.

00:14:43.720 | And so they're probably living a little bit

00:14:45.720 | above their current level of income,

00:14:47.800 | but they're looking at their level of wealth

00:14:49.120 | and what it could be someday and thinking,

00:14:51.000 | well, I should be up here because I have these stock units.

00:14:53.840 | And unfortunately, in the past couple of years,

00:14:55.480 | some people have probably had that knocked down a peg or two

00:14:57.960 | if they've been in a tech company

00:14:59.360 | and they've seen the stock options

00:15:01.040 | not worth nearly as much as they thought they would be.

00:15:03.360 | They probably were counting that money

00:15:05.480 | before it even showed up.

00:15:06.840 | But how do you think about this?

00:15:08.760 | You think it's coming someday

00:15:10.280 | and you maybe have a timeframe or you don't.

00:15:12.860 | It's kind of like an inheritance maybe.

00:15:14.200 | Like I know I'm gonna get some money someday.

00:15:16.920 | And so should I just spend more now

00:15:19.400 | with the understanding that this money's coming,

00:15:21.400 | but you don't know, this is a tricky one.

00:15:23.080 | So how do you plan for something like this?

00:15:25.280 | - Ideally, the most like clean way to do it

00:15:27.520 | is I'd like to think of RSUs

00:15:29.800 | and equity or incentive compensation

00:15:33.000 | as icing on the cake, a windfall,

00:15:34.480 | as you suggested with an inheritance.

00:15:36.780 | Now, some asterisks or caveats to that,

00:15:39.680 | depending on what company we're talking about,

00:15:42.180 | the vesting schedule really having a lot to do with it.

00:15:45.280 | I'll pick on Amazon for an example.

00:15:47.840 | It's a really great example for what you're mentioning

00:15:50.560 | with not only the stock being worth less than it was

00:15:53.040 | just a couple of years ago,

00:15:55.320 | but the way they engineer the vesting schedule

00:15:58.160 | and the way they go about doing the grant.

00:16:00.120 | So when you receive RSUs in this case,

00:16:03.760 | has a lot to do with how you're going to view that.

00:16:07.720 | And a lot to do with your overall compensation package.

00:16:10.640 | I'll give you a quick example.

00:16:12.360 | If your base salary can't cover,

00:16:15.040 | your monthly not,

00:16:16.440 | you're going to be looking at those RSUs

00:16:18.920 | as the way to cover that.

00:16:20.880 | And if you're vesting every month,

00:16:23.040 | you're going to be very tempted to view that

00:16:25.380 | as truly income, that's supplementing your base salary.

00:16:29.800 | Flip it around.

00:16:31.240 | If your base salary or your household stable income

00:16:34.360 | through salaries is enough to cover the monthly not,

00:16:37.200 | you can more easily view stock incentives

00:16:40.320 | as icing on the cake, as long-term investment assets,

00:16:43.440 | whether you sell it and diversify it or keep it

00:16:46.320 | because you're long on your company is a separate question.

00:16:49.600 | So a lot of companies, look,

00:16:51.480 | they go into this knowing this, right?

00:16:53.840 | And for the company,

00:16:55.240 | it's really about what kind of incentive

00:16:57.120 | are they trying to create?

00:16:58.840 | And what really handcuffs

00:17:00.640 | are they trying to put around your wrists?

00:17:02.920 | It's a little bit, I don't know if insidious

00:17:04.520 | is the right word,

00:17:05.360 | but it's a little bit more gaming you, the employee,

00:17:08.040 | when they're pushing you more towards,

00:17:10.360 | you got to eat these RSUs versus,

00:17:13.200 | hey, this is an award for doing a great job

00:17:16.440 | and we just want you to stick around.

00:17:18.040 | - To your point, you really have to understand

00:17:19.800 | how these work and every one maybe works a little different

00:17:22.880 | depending on the company and the timing

00:17:24.960 | and then the tax treatment of them and all these things.

00:17:27.260 | Another potential financial advisor savior here,

00:17:30.740 | but you better know what you're doing with these

00:17:32.360 | before you start counting the money

00:17:33.480 | and planning on it just being there.

00:17:35.240 | I'm sure there were a lot of people in Silicon Valley

00:17:36.840 | the last couple of years

00:17:37.680 | who were ready to buy a huge house or something

00:17:40.120 | because they know these stock options are coming

00:17:41.880 | and then they fall 80% or whatever it is

00:17:43.920 | and then now what do you do?

00:17:45.920 | - Exactly.

00:17:47.440 | Our good friend Morgan Housel wrote a piece the other week

00:17:50.080 | called "Expectation Debt" specifically around this topic

00:17:54.240 | where you see the price of that stock

00:17:57.360 | in the form of RSUs or performance based options go up,

00:18:00.380 | you're wealthy on paper,

00:18:02.040 | but you now got to repay that debt, there's a debt there.

00:18:04.720 | And that's the reversion to the mean,

00:18:06.280 | the fact that you need to plan for the fact

00:18:09.620 | that you are not going to be as wealthy

00:18:11.840 | as you are at that moment.

00:18:13.280 | And if you build your life around that,

00:18:14.960 | you buy a house that's large

00:18:16.760 | and now commands that you pay a larger mortgage

00:18:19.920 | than you thought 'cause you felt rich at the moment,

00:18:22.160 | these are classic personal finance traps.

00:18:25.440 | And it's not helpful

00:18:26.600 | and I'm not trying to vilify companies that do this,

00:18:28.800 | that's how they chose to incentivize

00:18:30.400 | and motivate their employees.

00:18:32.280 | More times than not,

00:18:33.360 | your employer is not looking out

00:18:34.840 | for your financial wellbeing.

00:18:36.760 | It's great if they are, so don't be naive.

00:18:39.380 | You have to take that into your own hands.

00:18:41.540 | And if you fell into that trap,

00:18:42.860 | you're gonna pay for that if the stock goes down.

00:18:46.080 | And they don't always say,

00:18:47.400 | hey, the price of the stock went down,

00:18:48.960 | let's make sure you get more of those shares granted to you

00:18:52.640 | at the refresher.

00:18:53.520 | They're like, no, things are pretty crappy here,

00:18:55.400 | you're getting less.

00:18:56.280 | So you then find yourself in a bind.

00:18:59.160 | So I would recommend to anyone,

00:19:01.540 | back to financial planning concepts,

00:19:03.640 | how are you viewing cashflow

00:19:05.640 | from the forms of compensation you receive?

00:19:08.140 | It's not necessarily a bad thing

00:19:09.800 | that you're eating performance-based

00:19:11.760 | or restricted stock to live,

00:19:13.860 | but you need to have a really good context around that

00:19:16.440 | in the short, intermediate, and long term

00:19:18.400 | so you don't fall into one of those holes later on.

00:19:21.320 | - Right, and yeah, maybe treat it more like a bonus

00:19:23.480 | than part of the actual budget,

00:19:24.820 | depending on when you're gonna get it.

00:19:26.920 | - Ideally, that would be the case.

00:19:28.360 | But again, if you need X a month

00:19:33.360 | and you're not gonna get that

00:19:36.120 | from your base salary,

00:19:38.140 | because that's just not how your comp structure is,

00:19:41.400 | your kind of hand is forced

00:19:42.660 | to either do uncomfortable austerity,

00:19:44.700 | either lower the cost of your lifestyle,

00:19:47.100 | and that's gonna be very hard for a lot of people

00:19:48.740 | who've grown accustomed to something,

00:19:50.580 | or I now need to dive in.

00:19:52.300 | Yes, in a perfect world,

00:19:53.300 | we'd love not to touch this other form of stock,

00:19:56.180 | treat it as a bonus,

00:19:57.180 | but it doesn't always break like that.

00:19:59.020 | Careful planning will get you there.

00:20:01.380 | - That's why I require part of my salary

00:20:03.140 | to be paid in physical oat milk delivery.

00:20:05.540 | So that's all.

00:20:06.380 | - I thought we were just paying you

00:20:07.480 | in hats every week, Duncan.

00:20:08.600 | - Yeah, true.

00:20:09.440 | Speaking of which, more on that.

00:20:11.020 | Remind me.

00:20:11.860 | - All right, next question.

00:20:13.160 | - Okay, up next, we have a question from James.

00:20:16.200 | I'm struggling with financial planning

00:20:17.700 | in a dual income house.

00:20:19.040 | It seems like the typical advice

00:20:20.600 | in terms of savings rate and income needed at retirement

00:20:23.000 | should differ between single and dual income households.

00:20:26.120 | I live in a high cost of living area,

00:20:27.860 | have two kids in Catholic school,

00:20:29.720 | and we both work.

00:20:31.420 | Dual income means we spend a lot more

00:20:33.360 | on children, camps, et cetera.

00:20:35.640 | Our income is pretty high,

00:20:37.000 | so having X percent saved of our income by age 40 is tough.

00:20:41.320 | It just doesn't seem like the commonly provided targets

00:20:43.800 | really match up.

00:20:44.760 | Any thoughts on this?

00:20:45.960 | - So a dual income household

00:20:47.880 | is actually in a much better position.

00:20:49.400 | A dual income household with kids,

00:20:51.360 | that's tougher, right?

00:20:53.000 | So we're talking single versus dual income,

00:20:55.160 | that's different.

00:20:56.000 | I think this is just more like managing a family,

00:20:59.440 | even when you have a dual income,

00:21:00.640 | can be difficult for people,

00:21:01.800 | especially depending on where you live.

00:21:03.080 | And I'm sure these people have seen these charts

00:21:05.200 | from a financial place that shows

00:21:07.800 | by 35 you should have this much saved,

00:21:09.560 | by 40 you should have this much saved,

00:21:11.200 | by 45, and people look at those numbers

00:21:13.260 | and they say I'm not even close to that,

00:21:14.800 | or you should have this X amount,

00:21:16.200 | X times your salary saved, or whatever it is,

00:21:18.500 | because they've run these numbers through the spreadsheet,

00:21:20.480 | and people look at these and they go this is crazy,

00:21:22.280 | I'm never gonna get there, I'm way behind already,

00:21:25.200 | I'm stuck, what do I do?

00:21:26.960 | And I think this is a tough place for people to be

00:21:29.360 | when they're trying to measure against these goalposts

00:21:31.360 | that are unrealistic to them.

00:21:32.680 | - Well, it seems like everyone used to say

00:21:34.120 | just have a million dollars to retire, you know?

00:21:36.480 | Like I remember just hearing that all the time,

00:21:38.120 | people talking about a million, a million, a million.

00:21:40.280 | It's kind of funny that's changed.

00:21:41.640 | - Obviously a lot of it depends on how much

00:21:43.400 | you're actually spending and what your lifestyle is,

00:21:46.960 | but I think for some people they have to figure out,

00:21:49.040 | I mean, Doug, as parents,

00:21:50.400 | you want to give your kids the world

00:21:51.800 | and you never want to hold back on experiences with them

00:21:53.940 | or letting them do what they want to do,

00:21:56.560 | so I think maybe for some people they have to figure out

00:21:59.040 | like, can I supercharge savings later in life

00:22:03.400 | if I'm slowing down right now

00:22:06.080 | or having some sort of fallback plan in the future

00:22:09.000 | to juice things when they need to.

00:22:12.040 | - Awesome lead for me on that one.

00:22:14.120 | Yeah, it's a little, that's correct,

00:22:15.880 | but let's get into the nuance of that.

00:22:18.440 | You know, this question is posed by what I would argue

00:22:21.480 | are, you know, highly performing or, you know,

00:22:24.220 | two professionals that are striving to, you know,

00:22:27.680 | continue to grow in their careers,

00:22:29.560 | and when you think about career growth,

00:22:31.000 | and by the way, career growth and expanding the top line

00:22:33.660 | is just one of those conversations in personal finance

00:22:36.080 | that doesn't get talked about enough,

00:22:37.700 | because you talk about those rules of thumbs,

00:22:39.860 | you start to treat this as a linear system, right?

00:22:43.480 | Nothing, nothing in personal finance,

00:22:46.300 | the markets, the economy is linear.

00:22:49.240 | It just doesn't work like that,

00:22:50.640 | and that's when things start to become oversimplified.

00:22:53.400 | So to your point, it is tough.

00:22:56.400 | It is very tough in planning to say,

00:22:58.440 | "Okay, we're doing great, we're making all this money."

00:23:01.880 | You know, you can't go back on certain,

00:23:03.400 | you send your kids to camp, you're then next year,

00:23:05.240 | and they love it, you're not not sending them

00:23:07.160 | to camp the next year, like you're locked into that.

00:23:09.500 | Like, there's just things you can't walk back

00:23:12.200 | in this type of environment.

00:23:13.800 | - I just got sent pictures from my wife today.

00:23:15.980 | The kids are at some outdoor camp,

00:23:17.960 | and they're both riding a horse, ear to ear smile,

00:23:20.640 | and there's no way they're,

00:23:22.560 | they're gonna have to go there every year now.

00:23:23.920 | - Yeah, there you go, and you're committed

00:23:25.600 | to X thousands of dollars every year

00:23:27.480 | for the next eight years.

00:23:28.880 | And we just took our daughter to, you know,

00:23:30.560 | a rookie day at a camp, just like, "Great."

00:23:32.320 | You know, and oh, this is gonna be the greatest gift

00:23:35.600 | that we could give her.

00:23:36.440 | Truly, it is a magnificent, life-defining gift

00:23:40.160 | that equates to an economic function of our household.

00:23:43.560 | And this type of stuff is what is in this question.

00:23:46.820 | So let's talk about the thing that's not said is,

00:23:49.480 | how are they thinking about the trajectory of their careers?

00:23:53.800 | I would hope that most people hustling in careers

00:23:56.720 | that first provide for upward mobility and income

00:24:00.440 | are doing that.

00:24:01.280 | And that could be a dangerous or tricky game to play,

00:24:03.560 | saying like, look, I'm gonna give them this now,

00:24:06.440 | or I'm going to choose.

00:24:09.440 | This is the active choice to remain this comfortable,

00:24:13.380 | and it comes at this cost,

00:24:14.800 | but I'm gonna bet on myself and my career

00:24:17.540 | in order to get there.

00:24:18.380 | And the thing you gotta be mindful of,

00:24:19.840 | the lifestyle creep, right?

00:24:21.580 | That when you do elevate your income,

00:24:24.320 | and you now are back in the position

00:24:26.320 | of being able to super save,

00:24:29.280 | how quickly will that go away

00:24:31.180 | based on the decisions that you are going to make?

00:24:33.680 | And then factor in that life's fickle, not linear.

00:24:36.640 | You could lose a job, there's great,

00:24:38.000 | or you could find yourself moving across the country

00:24:40.080 | for a great opportunity and making even more money.

00:24:42.640 | People don't just sit in one spot.

00:24:45.680 | I, in my own career, have gone from cool,

00:24:47.680 | look, we're maxing out 401ks and savings and all this stuff.

00:24:50.840 | The 529 plans, well, the firm's got to grow again.

00:24:53.780 | We have to make investment in the business.

00:24:55.460 | And this is coming from the entrepreneurial side,

00:24:57.840 | not just the, well, I want to send my kids to campsite,

00:25:00.900 | or we really do need this vacation

00:25:03.100 | because if we don't take it,

00:25:05.240 | we are gonna burn out and become unproductive at our jobs,

00:25:08.260 | and that's a risk we're not willing.

00:25:09.500 | Whoever thought taking a nice vacation

00:25:11.380 | would actually equate to ensuring

00:25:14.060 | that you're able to consider,

00:25:16.060 | or continue growing your income.

00:25:18.020 | They're not-- - The other thing is,

00:25:19.140 | you're probably gonna have to,

00:25:20.380 | there's always trade-offs with this,

00:25:21.520 | and if your kids are going to be,

00:25:22.920 | and family is going to be your number one priority,

00:25:25.760 | or one of them, then somewhere else

00:25:27.660 | is gonna have to be cut back, right?

00:25:29.440 | It's gonna have to be fancy restaurants,

00:25:31.320 | or your trips aren't gonna have to be as nice,

00:25:32.840 | or something, so unfortunately, something has to give.

00:25:35.720 | If you're living in a high-cost of living area,

00:25:38.240 | maybe you don't have as much transportation,

00:25:40.240 | you don't have cars, or some way,

00:25:42.220 | you have to give up something, unfortunately.

00:25:43.640 | I think that's part of it is prioritizing

00:25:45.880 | and giving up on something,

00:25:47.040 | and that's your point of lifestyle creep.

00:25:48.360 | If you wanna have it all, and you look around,

00:25:51.260 | and you say, "I'm getting nowhere,"

00:25:52.540 | then something has to give there.

00:25:54.260 | - Absolutely, for folks that can't increase their top line,

00:25:58.300 | this is extraordinarily relevant.

00:25:59.660 | You definitely then need to focus on the bottom line.

00:26:01.900 | Not everyone has even the ability to go out.

00:26:05.380 | It's so cliche, at this point,

00:26:07.300 | to be like, "Go get a side hustle."

00:26:08.820 | It's like, "Yo, I'm working 70 hours a week.

00:26:10.580 | "This is what I'm gonna make."

00:26:11.820 | There's no opportunity for that.

00:26:13.500 | So Ben, to your point, yeah,

00:26:14.780 | maybe you didn't need that extra roll

00:26:17.180 | when you went out with Innards.

00:26:18.340 | Does that add up?

00:26:19.180 | Do the smaller things add up?

00:26:20.640 | Yeah, everything adds up,

00:26:22.100 | but when you don't have that ability

00:26:24.580 | to increase your top line,

00:26:27.460 | you have to get super critical about the expenses

00:26:29.680 | and all of those.

00:26:30.520 | - But I agree with you that the personal finance blind spot

00:26:33.020 | has always been making more money,

00:26:34.580 | and for a lot of people, that's the key.

00:26:36.420 | You just have to figure out a way

00:26:37.420 | to then continue saving a percentage of it

00:26:40.340 | and not just spending the whole thing.

00:26:41.580 | If and when you do get to the point,

00:26:43.060 | you do make more money.

00:26:44.100 | - I like doing a ratio here.

00:26:45.220 | I tell my clients, "Hey, cool, you got that bonus

00:26:47.480 | "or you got that raise.

00:26:48.800 | "I'm okay with you increasing lifestyle.

00:26:50.740 | "Just make it one to five of lifestyle to savings

00:26:54.140 | "or one to 10 or whatever it is."

00:26:56.060 | If you keep up that kind of mentality,

00:26:58.420 | you're gonna save more

00:26:59.260 | and you're gonna enjoy life a little bit more too

00:27:01.820 | when you spend every dollar

00:27:03.860 | that you made more on a vacation.

00:27:05.100 | Yeah, you're definitely not getting anywhere.

00:27:06.860 | - Right, all right, we got one more question.

00:27:09.700 | - Okay, up next, we have a question from Zach.

00:27:11.700 | "I work in investment banking

00:27:13.040 | "and have a comfortable comp package

00:27:15.000 | "given my current lifestyle.

00:27:16.280 | "However, I struggle with what I should do

00:27:18.420 | "as it relates to my savings, excluding 401k.

00:27:21.460 | "I'm looking to purchase my first home

00:27:23.100 | "within the next two years,

00:27:24.220 | "but I'm looking for guidance on the split

00:27:25.760 | "between a high yield savings account

00:27:27.240 | "and my brokerage account.

00:27:28.700 | "I currently have about $30,000 in the savings account

00:27:32.340 | "and the same in brokerage.

00:27:33.920 | "Should I just take 20% from each paycheck

00:27:37.080 | "and put it directly into the brokerage

00:27:38.700 | "since I have a cushion in the savings account

00:27:40.820 | "or continue to split between the savings and brokerage?"

00:27:44.020 | - So this is like a bucketing thing

00:27:45.460 | where if you think about it,

00:27:46.420 | all your money is in one bucket.

00:27:48.020 | You have all this money,

00:27:49.340 | but you have different strategies

00:27:51.320 | depending on the time horizon for it.

00:27:53.220 | So obviously, this person's saying,

00:27:54.160 | "I know the 401k, I can't touch that for decades,

00:27:56.020 | "or I won't, but I have this other money

00:27:58.120 | "where I have a goal that's coming up

00:28:00.900 | "in a fairly short period of time

00:28:02.940 | "and I wanna buy a house.

00:28:04.100 | "How do I allocate my cash savings?"

00:28:06.700 | I think this one's probably easier

00:28:07.940 | than it was a few years ago

00:28:08.820 | because we actually finally have some short-term yield.

00:28:11.080 | You can put it in.

00:28:11.920 | This is one of the questions we got more than any other

00:28:13.600 | from people for years is like,

00:28:14.780 | "I'm saving for a house or I'm saving for a wedding.

00:28:17.280 | "Where do I put it 'cause interest rates are zero?"

00:28:19.160 | Now that they're not zero anymore, it's a little easier.

00:28:22.140 | And so I don't know if they're asking

00:28:23.220 | if they should have some money in the stock market

00:28:26.060 | because they're gonna be spending it two years.

00:28:26.900 | - Yeah, that's what I used to.

00:28:28.140 | - But I think with a goal that short-term,

00:28:31.440 | the stock market is always very risky in the short-term,

00:28:34.980 | and especially for something as important as a house,

00:28:37.460 | risking it in the stock market,

00:28:38.880 | I think is almost just too big of a risk.

00:28:40.940 | I don't know what your rule of thumb is

00:28:43.420 | for something like this,

00:28:44.260 | if it's two years, three years, five years,

00:28:46.100 | something like that.

00:28:46.940 | But I think you have to have some sort of rule of thumb

00:28:48.420 | where you say the stock market in a short period of time,

00:28:51.220 | even though it goes up most of the time,

00:28:52.580 | is too risky for a goal that's this important.

00:28:55.780 | - Yeah, it'd be quite the hot take

00:28:57.060 | to go against that wisdom right there.

00:28:59.620 | And I would argue even, not only do I agree,

00:29:02.300 | but I would go back to the comment

00:29:04.700 | about when interest rates were low and you got nothing.

00:29:08.300 | I would still favor that.

00:29:10.220 | - The safety of it, right?

00:29:13.220 | - Yeah, the bottom line is there is no reward

00:29:17.020 | attractive enough in that short period of time

00:29:20.780 | to justify the risk that you would need to take

00:29:23.620 | in order, when it comes to needing that money.

00:29:27.820 | So whether interest rates were at 1%

00:29:30.540 | or you could get 5% in your money market fund,

00:29:33.860 | the goal is cash here.

00:29:35.160 | In some cases, you really do need to know yourself

00:29:38.660 | and your own risk tolerance.

00:29:39.580 | So let's use like real terms on that.

00:29:42.120 | Okay, you're saving for a home

00:29:46.800 | and you make an extra five grand

00:29:48.880 | because you decided to invest a good portion of that.

00:29:52.840 | You're gonna do what Warren Buffett says,

00:29:54.000 | put it in the S&P 500, bet on America.

00:29:56.960 | You got an extra five grand to your name here.

00:29:59.200 | That's not going to do much

00:30:01.060 | other than maybe defray closing costs

00:30:03.280 | or a nice sofa in the house.

00:30:05.280 | Yeah, fantastic.

00:30:06.680 | But what if you lost five or 10?

00:30:09.200 | You're gonna kick yourself, right?

00:30:10.960 | What if that's the difference of you closing or not?

00:30:13.200 | Well, first of all,

00:30:14.040 | if that's the difference of you closing,

00:30:14.860 | you probably did poor planning from the jump.

00:30:16.400 | - To your point, if you gaining the closing costs,

00:30:18.400 | that's great.

00:30:19.240 | But if you lose the closing costs,

00:30:20.440 | that's gonna hurt way more.

00:30:21.880 | The downside is way bigger than the upside,

00:30:24.120 | even for the same amount of money.

00:30:25.660 | - Exactly.

00:30:26.500 | It's disproportionate, the downside

00:30:28.960 | than it is to the upside.

00:30:30.080 | So my rule of thumb is zero to four years,

00:30:32.480 | you can go with cash risk-free.

00:30:34.600 | I think it's great that for the first time since 2007,

00:30:38.960 | you and I remember when you could get some yield

00:30:41.560 | on some stuff.

00:30:42.880 | Folks younger than us,

00:30:44.760 | this is their first rodeo

00:30:46.300 | and actually being outside

00:30:47.920 | of a zero interest rate environment.

00:30:49.480 | So it looks cool.

00:30:50.360 | And there's a whole lot of stuff

00:30:51.440 | we could talk about on that.

00:30:52.400 | But yeah, it's cash.

00:30:54.960 | Forgo the brokerage.

00:30:56.520 | We could talk about a small allocation to fixed income

00:31:01.520 | and whether there's an opportunity there.

00:31:03.280 | But the bottom line is they could lose value too.

00:31:05.840 | - Right.

00:31:06.680 | So if you really wanna go crazy and speculate,

00:31:09.000 | take like 5% of the money maybe

00:31:10.640 | and an amount you're willing to lose and not be there,

00:31:14.640 | something like that if you really want to.

00:31:15.920 | Otherwise, I don't know why you'd take the risk,

00:31:18.360 | especially if it means not buying a house.

00:31:20.400 | Especially since it's so difficult

00:31:21.960 | to buy a house these days,

00:31:22.800 | you want your finances as shored up as possible

00:31:25.000 | 'cause there's just not a lot of houses out there.

00:31:26.480 | - Yeah, you gotta be pretty aggressive on the savings

00:31:28.720 | and just getting the money in that bucket

00:31:30.280 | for the home personal.

00:31:31.360 | It is extraordinarily difficult

00:31:32.760 | depending on what market we're talking about.

00:31:35.280 | It's just not a fun thing to do.

00:31:37.360 | So take the safety of it.

00:31:38.600 | And life is a little bit more simple

00:31:41.440 | when you look short-term.

00:31:42.520 | It's cash, it's risk-free.

00:31:43.960 | And when you're thinking retirement long-term, go risk on.

00:31:46.520 | I mean, you have time on your side

00:31:48.040 | versus time not on your side.

00:31:49.560 | And it's as clear cut as that.

00:31:51.280 | One of the few things we can just be like,

00:31:53.120 | it is what it is.

00:31:54.360 | - Right.

00:31:55.200 | Okay, Doug, we're gonna plug here.

00:31:56.040 | Newsletter, "This is the Top," right?

00:31:57.840 | It's a sub stack.

00:31:58.680 | - Yeah, yeah, I get to plug something here.

00:32:00.200 | Cool, I write a sub stack called thisisthetop.substack.com.

00:32:03.600 | You can get to that following me on any social media.

00:32:06.160 | We gotta pump threads, right?

00:32:07.080 | That's what everyone's trying to get followers on now.

00:32:08.840 | But it says @DougBonaparte on all your favorite-

00:32:12.680 | - Can you believe we have to completely start over

00:32:14.080 | on social media again?

00:32:15.840 | - Not if you're like a massive influencer and celebrity

00:32:19.760 | that gave you that.

00:32:20.600 | I felt like Meta should have given them a delayed start

00:32:23.320 | and we get the head start.

00:32:25.160 | That would have been more fair,

00:32:26.760 | but that's not apparently how ad dollars work here.

00:32:29.160 | Yeah, we gotta start all over here.

00:32:32.200 | Yay.

00:32:33.040 | - I'm not loving threads, I gotta be honest.

00:32:34.480 | Everyone, I know it's uncool to say you don't like threads,

00:32:36.800 | but I'm not getting into it so far.

00:32:39.960 | Maybe I'm just too used to threads.

00:32:41.400 | - Yeah, I have no choice.

00:32:42.760 | My general counsel and head of business development,

00:32:45.160 | AKA my wife, is, "Get on there, go do it."

00:32:49.440 | It is another avenue.

00:32:50.800 | You take the Gary V approach of it's not Twitter or threads.

00:32:55.480 | It's Twitter and threads.

00:32:56.800 | It's like, "Great, I have this other-"

00:32:57.840 | - Diversification, Duncan.

00:32:59.160 | - Yeah. - Back to that.

00:33:00.000 | - It's true, diversify your social media.

00:33:01.320 | - The compound is on threads.

00:33:02.640 | - Isn't that the threat though?

00:33:04.040 | But isn't that the threat?

00:33:05.080 | You know, like, "Oh, your platform's going away,

00:33:08.360 | "so you need to get it."

00:33:09.480 | I don't think any of them, you know,

00:33:11.160 | with serious dollars behind them from a company like Meta

00:33:13.880 | or Elon is going anywhere.

00:33:15.480 | This is too much money going towards them.

00:33:16.320 | - I did sign up for a post account in Mastodon, I think,

00:33:19.520 | and at Josh's recommendation,

00:33:21.240 | like you were talking about on Animal Spirits,

00:33:22.960 | then I haven't used it.

00:33:23.800 | - See, that's too much diversification.

00:33:25.960 | All right, if you wanna send us a question,

00:33:27.960 | email us askthecompoundshow@gmail.com.

00:33:31.400 | Thanks again to Doug for joining.

00:33:32.760 | We appreciate it.

00:33:33.640 | All the young people, millennials, asking our questions.

00:33:37.040 | If you're listening to a podcast, leave us a review.

00:33:39.360 | You're on YouTube, leave us a comment or a question.

00:33:41.720 | New hat, Duncan?

00:33:42.880 | - New hat, dropping in the shop,

00:33:44.880 | idontshop.com tomorrow at noon, this hat.

00:33:49.360 | I was supposed to be wearing it on the show.

00:33:50.480 | I forgot. - That's great.

00:33:51.320 | - Okay, so thanks again to Bird Dogs,

00:33:52.920 | and we will see you next time.

00:33:55.160 | - See you, everyone.

00:33:59.160 | (upbeat music)

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