(beeping) - Welcome back to Ask the Compound, where every week we get great questions from you, the viewers. Remember our email here is askthecompoundshow@gmail.com. Duncan, how's it going? - Pretty good, pretty good, how are you? - I'm great. We're brought to you today by bird dogs. I just this week got a new pair of the bird dogs stretch khakis.

It's nice, I have to look nice sometimes, dress up a little bit, but also be comfortable. You can buy them with or without the liner. The liner's pretty key, it's kinda nice. - You're a big liner guy. I actually, I like the, I have a pair without, I like 'em.

- Yeah, both are good. We're still giving away, they're still giving away these dad tech hats. This one's got your name on it, Duncan. So if you go to birddogs.com/ATC or enter promo code ATC, you can get that. They also have great, great polos. I've been using the shorts lately just for working out because it's too cold to wear 'em outside anymore.

The polos are nice, it's great. Birddogs.com/ATC to find more. - They're also our record sponsor here on Ask the Condown. They have sponsored more shows than anyone else. - Okay, so they've been on more than Bill Sweet even. - They have, they actually have, yeah. So I appreciate that.

- They should make a pair of raw thigh raise for us. All right, let's get into it. Good questions today. Yeah, so up first today, we have a question from Chris. I'm 55 with a net worth of $1.1 million. I'm a software consultant and quite bullish on my income rising.

Definitely live below our means, our kids will be highly competitive to get into top schools where it's estimated that four years will cost $250,000. In saving for his education, the money has been going into a couple of brokerage accounts, $30,000 in Lyft off, which I never pay attention to, and $226,000 in E-Trade.

Guess I've gotten lucky with E-Trade because it has done pretty well over the years. This is in large part due to early investments in Tesla and NVIDIA, not bad. I'm pretty bullish on both of these stocks, but what do I know? I'm deliberating the following choices. One, liquidate both stocks and stuff into a high-interest 15-month CD.

Two, liquidate everything in the account but those two stocks and stuff into a CD. Three, hold tight. The plan is to use loans for the first year, so we will need to start tapping into the money in the fall of 2025. What are your thoughts? - So Chris actually sent us his statement here.

We didn't include it, obviously, but he's got massive gains in both of these stocks, like 5,000% or something. Why don't we bring in a guy who's been talking about NVIDIA for probably longer than Chris has been holding it. Mr. Josh Brown. - Hey! - Straight from CNBC to Ask the Compound.

- I wanted to say thank you guys for having me on the show. I learn so much each week listening to you. I want to address one person in the comments and then we can get rolling. John Carlo asks, "Is Josh a subway guy or an Uber guy?" I guess 'cause I was late and you guys usually start at 1.30 and we're getting rolling a little bit late.

- Yeah, I mentioned you were coming straight from NYSE. - Yeah, so I don't do subways. And it's not 'cause I think I'm too good for the subway. It's literally just, it makes me so unhappy and depressed, I'd rather walk. So I'm either always in a car or I'm walking and I will literally walk 40 blocks.

- You know what the worst part of the subway is for me as being someone who doesn't take it very often? - Yeah. - Grabbing one of the poles and the pole is long from the person who held it before you. - Yeah, I will absolutely not grab anything at all.

And what's funny is we have a dinner reservation somewhere downtown 'cause we work in Midtown Manhattan and Mike will be like, "Come on, just take the subway, it's quick." It doesn't matter if it's one second. Every aspect of it is my worst nightmare. And it's not the length, it's the walking down knowing what you're about to do.

So I just, I can't do it, I'm sorry. There's a lot of things I can't do. That's one of the things I can't do. All right, what are we doing? - Pro tip two, never sit on the subway. I've seen things. - Sit? - I've seen things, just don't do it.

- Listen to me, never stand on the subway. All right, sorry. So I'm facing the same dilemma as, what's his name? The guy that wrote that? - Chris. - Chris, so he's sitting on these huge gains. - Yeah. - You might be in a different position. I don't know if you have a goal to use this money for, but he's saying, "I have this goal, I know how much I need.

"I'm gonna be spending it in two years." And he's already gotten, he needs 250 grand and he's gonna spend it. - I'm in the same position. My daughter just applied to 12 colleges last month. So someone's gonna take her. So she's applying to schools that are gonna cost me money.

So I didn't hear 529 anywhere in what he said. And obviously he doesn't own Tesla stock in a 529. - Right, yeah, he said he's using brokerage accounts. - Brokerage accounts, all right. So we liquidated all of our stock exposure for my daughter this year. Because we're using the money starting, presumably, starting next fall.

So we specifically put away for this event, for both the kids, and we used, I think, the best possible vehicle you could have done it with. - And the timing is pretty good, because you could actually earn something in cash now that you sold it, right? - Yes, I don't really care what happens to the market, because this is now like, it doesn't make a difference.

This is, I know for a fact I need to use the money, so I just mentally said, if I'm leaving money on the table because there's a stock market rally, whatever. That's the nature of what we're doing now. But we were invested in Vanguard because it's the New York State 529 plan.

So yeah, the S&P went up this year. And I missed some of it, but it doesn't matter. What I would do if I were him is I would keep Tesla and Nvidia, just because if you can liquidate everything else, literally put it into something high yielding until you need it a year and a half from now, that's the move.

Or when's he need it, fall '25? - Yeah. - So, all right, it's two years from now. - John, give me a try out of Tesla and Nvidia drawdowns. So last year, you saw these ones fall. I mean, Tesla was down 73% and Nvidia was down 66%. So even sitting on huge gains, that's the risk is that that money's not there when needed.

The good thing about the four-year thing is that you have time to space it out. So you could, like you said, you could leg out of the other stuff if you wanted to, and it's not just those two stocks, but-- - You would probably say the other way around though, right?

You would probably tell him take the gains in the two solo stocks and try to hold onto the rest for another year? What would you tell him? - I would probably, if I know I'm gonna be spending this money in the next couple years, I would lock it in.

He's got the 250 he needs. I wouldn't even, I mean, maybe keep 20% in the stock market if you really want something. But other than that, I'm all for cashing it out and sitting and keep going chill or whatever. - I think I am too. I think you made an important point.

It's like, all right, you're applying to private colleges or whatever. You think the bill will be 250. Well, that's not due in freshman year. You're paying that out over the course of four years, four years from the fall of '25. You're almost in 2030. It's possible Nvidia and Tesla could double again between now and then.

I don't know. I didn't think they would in the first place. So I don't know, but it seems to be like part of the, it seems to be like to me that if you have some stock market exposure that you're taking off the table, you don't have to take all of it off the table.

Also, if these are in taxable brokerage accounts, these are huge embedded tax liabilities in the year that you take these gains in those two stocks. So he said he's early Tesla. I mean, I'm early Nvidia. I own Nvidia from 2015. I think I'm up 3,000%. - Right, so maybe if he has other forms of liquidity, tap those first.

- That's what I'm saying. I think that's what I'm saying. - That makes sense. - So you're saying you think long treasuries would be too risky then for your risk tolerance? - What, long-term treasuries? - Yeah. - Well, if he wanted to, he could do a simple-- - You said T-bills.

That's why I was asking. - Oh, T-bills, yeah. Not T-bonds. He could do a ladder. - Do a ladder. - A five-year ladder or something, right? - Yeah. - Something simple like that. Do 20% in one, two, three, four, five-year maturities. - Yeah, and you match those assets with the liabilities and it's done for.

- It's a lot of work, though. You can find a target date fund. You can find a, not a target date fund. Don't they have the target maturity bond funds now? - Yeah. - They're pretty easy to use. - Yeah, iShares has those. It's pretty easy, yeah. - I thought you were gonna say chart options.

- Yeah. Well, I was gonna say, if you have a Lyft off account, call us. We'll help you. We know how to do this stuff. - All right, next question. - Thank you. Okay. - Hold on. - Up next, we have a question from Matt. - Wait, Nicole's moving my mic.

Okay. - I appreciate Ben's long-term view of stock market correlations, I mean, of stock market corrections, but what if this time is different? What are the stats when the Fed is actively offloading trillions of assets and raising rates? What if this cycle is an anomaly and should be treated as such?

- So I got this question from someone. John, do the chart on it. I did just kind of a quick, over the last 70 plus years, like, what's the distribution of drawdowns in the stock market? Just saying, like, this is, we're down 10% right now. I think the average from all-time highs at any point in time is like 9.5%.

So it's almost like the average experience in the stock market is you're looking up from a correction, basically. All-time highs happen like seven or 8% of the time since 1950. Most of the time you're in a drawdown. 20% or worse, it's like one out of every six or seven years.

Since 1950, the S&P 500 has been 10% or further away from its high. - Right. - Is that worse? 36% of the time? - Right. - I didn't know that. So a third of the time that you're investing, you're investing in the midst of a correction. - Yeah, and my point was, yeah, like, get used to it.

This is like no pain, no gain, no risk, reward, that whole thing. But some people are saying, like, listen, throw all the historical evidence out the window because this time is totally different. The Fed is raising rates and the government is spending trillions of dollars and the Fed is reducing its balance sheet and inflation is gonna be here to stay and all these things.

And I think the thing that we've come down on is that like every time it's different. And every time there's a correction, you think this is the big one and the stock market is never coming back. But you look back historically and you go, well, if that little dip on the chart there back in 1950 or 1980 or whatever, I would have totally bought that.

But when it's happening in real time, you say, in the back of your head, you go, but what if this is it? What if it doesn't come back this time? I think that happens every time. - There's only one exception to what you're saying. That's, Ben, that's true. And if we were like having, if there were YouTube or podcasts in the 1970s and we were having this conversation, like, we could substitute all the stuff that the guy is saying.

Like, when was the last time this occurred with the Fed doing this? - Oil shocks and Nixon. - Yeah, we could say, right, we could substitute the oil embargo and all this other stuff and Watergate. So I agree, it's always different. The one time that there's an exception, I think, is the pandemic.

Like, we had net positive flows into our RIA in April and May of 2020. Think about how crazy that is. Because you had an unemployment print. It was like the biggest drop in employment in history, one month drop. Like, you had some superlatives where it's like, well, maybe this time it's not gonna bounce back because, right?

But, like, investors didn't give a shit. We had net, I don't have the stats, I should ask Nick, but we honestly raised so much money. It wasn't us, like, telling people, hurry up, send us all your money, the market's about to bounce. This was, like, unprompted clients. Clients were just like, well, if I were ever to put more money into my accounts with y'all, this would be the time.

And we were, like, pleasantly surprised. They definitely didn't expect that. So either people got smarter over the years since we've been doing this, or there was just something about that particular circumstance where this time, that time, they knew it was different, but different for the right reasons. And I think investors are more conditioned now.

In the past, if you were in the '70s, you'd look back and you'd see, like, the Great Depression, and then you'd see, like, this huge bull market in the '50s, but you didn't have as much time to look back and say, like, listen, every time the stock market goes down, it comes back, right?

There's never been a time where the stock market has fallen and it hasn't reached a new all-time high. So this just happens, and I do think-- - I'm not smiling about it. Nicole keeps backing my microphone away from me, and I keep getting closer to it. - Just eating it.

- Sorry, Nick, all right. But I think especially for young people, they look at the state of the world and the scary headlines and think, like, it's never been this bad before. I think William Bernstein had a quote that was something like, "The only black swans of the history you haven't read yet." Like, history has always been terrible, unfortunately.

It's just the scary headlines are just beamed into our faces every single day now, and we can't get away from it. - Right, we have more exposure to the news, but also the news's profit motive has never been more, so it's always, the profit motive of the news has always been to impulse people into doing something, you know, put down a nickel, buy a newspaper, or tune in at 6 p.m.

for Cronkite. That part has not changed. It's just like everything else in the world, it's on steroids. And so the incentive system for people writing market news is to get you to read theirs and not someone else's. And so once you understand, and I, you know, as I've talked about before, I eat, sleep, and breathe that world, so I can tell you I'm not exaggerating.

Like, this is a much more challenging media environment for the average investor. - Yeah, it's a firehose. - It's way worse than anything that any other generation has experienced. - Feels like mass media has become more and more like TMZ instead of TMZ becoming more and more like mass media.

- Listen, I've sat in meetings, like where editors at major publications were like, yeah, but how can we like, how can we make this more, they'll say like, how can we make this more urgent? Or how can we make this more interesting? So, you know, I know. Like, I'm one of the people who knows.

- Like, we can't, we don't know how bad corrections in the future are going to be, or what the reasoning's going to be, or when the stock market is gonna have a period of crappy returns. Like, that stuff is all gonna happen, but I don't think, that doesn't mean you abandon risk assets because they're gonna make you feel uncomfortable from time to time.

Like, this is totally normal, the feeling of discomfort. That happens to every investor. - So it's a button up. What he's asking is perfectly legitimate. He's like, look, I get it. You have this data back to 1950, and you're showing us, you know, how often stocks are in a 10% drawdown and how often they're at highs.

But what's not in your data set is the unique set of circumstances that we're living through now, including, you know, a record-setting pace of rate hikes and, you know, the Fed shrinking its balance sheet and government deficit. Yes, you're correct. This particular mix of circumstances does not show up in a data set going back to 1950.

But can I show you Vietnam? Can I show you presidential assassinations? Multiple? Like, you know, I'll show you some other stuff that's not going on right now, you know? So I think that's a good point. - Yeah. - Let's not beat a dead horse. What else we got? - Yep, next one.

- All right, up next, we have a question from Joe. A question I've asked my friends and would love to hear you guys discuss in detail is what makes the tech giants of today any different from Cisco, Intel, or Microsoft after the dot-com bust? Could these stocks end up going nowhere over the next decade?

Why are the tech stocks of today any different? So kind of on the same theme. - It's funny that Microsoft is one of the big tech stocks today, and it was, John, throw up the chart here. I did Microsoft, Cisco, and Intel going back from the 1999 peak, early 2000 peak.

Microsoft is actually the only one that's come back. Cisco and Intel are still underwater from back then, and Microsoft was underwater for 16 years, I think, so it was 2016 on a price basis that it took to round trip. I'm not sure many people realize this. The NASDAQ 100 was underwater from 2000 to 2016 as well after going through an 83% drought.

So as great as the NASDAQ 100 has done in the past decade and a half, it went nowhere for over a decade and a half. It's interesting. So from 2009, the NASDAQ 100 was up 19.2% per year, which is just impossible for any professional investor to beat. Since the start of 2000, it's only up 6.5% per year, 'cause from 2000 to 2008, the NASDAQ 100 was down 12% per year for almost a decade.

So, I mean, that was the craziest the US stock market has ever gotten, but I guess the way I look at it is the biggest difference between now and then is these companies are like conglomerates now, right? Like Microsoft, how many different business lines do they have? How many different business lines does Amazon have?

- But the good kind, not GE, right? - Yeah, back then, I don't think these companies were as bulletproof. Now, that doesn't mean these companies can't underperform, but to have that sort of level of underperformance, I think things got so silly in the dot-com bubble that this is a different story.

- So, there's a few things what separates this from 2000, in my mind, today's tech companies versus, first of all, the NASDAQ was like 86 times earnings back then, and one of the things skewing that number higher, the P/E ratio, is that a lot of the companies were just not profitable.

So, the largest dot-com IPOs, not only were they not profitable, they had no revenue. Like, we're talking about companies coming public-- - Yeah, there were no fundamentals back then. - No fundamentals. So, that's a really, really big difference. You look at the 100 companies that make up the queues right now, compared to the dot-com bubble darlings, there's no comparison on a fundamental basis.

Back then, these were companies doing experimental things with literally no business model. That is not what people are investing in right now. So, that's an important distinction. Valuations are not cheap now, but they don't look like that. So, like, Apple is now 24 times next year's earnings, they're expected to grow earnings by 8%.

Next year, let's assume consensus is somewhat close. It's not cheap on its earnings growth, but it's got features that investors are probably prizing just as highly as earnings growth. It's got more stability than most countries in the world. They can issue debt at a AAA rating. It's got a forever fortress balance sheet.

I think they have $144 billion in cash. They're earning more money on their cash than some S&P 500 companies are earning in operating income, okay? So, and to Ben's point, it would be foolish to compare Cisco, which did one thing in the year 2000, they did networking, like, literally, that was the business, to an Amazon, which is the number one or number two player in 10 different businesses.

>> Right, I went to Whole Foods today, which is owned by Amazon, and I paid for my Whole Foods salad or something, credit to me for eating healthy, with my palm. I paid with the palm of my hand. I go on IMDB on my phone, 'cause I like looking up people who are in movies.

That's owned by Amazon, they own MGM, Prime Video, they have the cloud business. They buy up all their competitors these days, so these companies are more than just one business line. There's so much more diversified. Again, that doesn't mean they can't underperform, but not like that. >> Doesn't mean the stocks can't go down or sit flat.

Actually, one of the funny things about Microsoft, now that you mention it, you know, Ballmer kind of got a raw deal. First of all, he's the only, he's the only, like, mega-billionaire who made his money as an employee, not a founder. I don't know if you know that. He didn't start, you know, he was employee number 30.

>> Right, he was like Bill Gates' assistant or something. >> Microsoft hired him to follow Bill Gates around and probably make sure he didn't put on two different shoes. But he worked his way up within the company, and when Gates was tired, Ballmer said, "Put me in, coach." And over that next 10-year period, while he was the CEO, I think Microsoft tripled their earnings.

Problem is the stock didn't go up, because starting valuations matter. >> Right, it was so high. >> I think it was 60 times earnings, and then by the end of that decade, it's like 15 times earnings. And part of that is multiple compression, the stock going down or nowhere, and part of that is earnings growth, but they're not getting credit for that earnings growth, because it was not a bull market for tech, and Ballmer stepped into the seat at a very high valuation.

>> Yeah, you also had two 50% stock market crashes, and so that didn't happen. >> So it's very possible that NVIDIA grows its earnings by 20% a year for the next 10 years, and the stock doesn't do much. That's the risk, what do you want? You want guarantees? We're all taking risks.

Choose the risk that you want to take. >> Just for some context and perspective, how did that era compare to the SPAC era that we just experienced, and that young people might have just experienced for the first time? >> No, there's no-- >> Crazier, right? >> You're talking about like, you're comparing an acoustic guitar to an octopus on, you know, like there's no, it's not even apples and oranges, two different conversations.

>> The dot-com bubble was like four or five years of that behavior, not just like a six-month period. Also, the other thing-- >> No, the SPAC boom was a freak show. It was not even like, the thing about the dot-com bubble, and this point has been made more eloquently by people like Marc Andreessen, like all of the ideas were good.

It was just too early. The world wasn't ready for them, but like, we had Webvan and Peapod, and these were early delivery grocery internet sites. It was just, it was too early. >> Yeah, it wasn't ready for that. >> The world wasn't ready. Pets.com was a bad idea. 20 years later, we have Chewy, great idea.

So it's not, you can't compare that to SPAC mania, which is just fundamentally bad ideas. It was people coming public, oh, we're going to build a submarine with a screen door. Oh, you are? Here's our six billion dollars. You know, like, forget that. We're not talking about that. >> Also, the-- >> We're going to build a solar power flashlight company.

You want in? My nephew started it this morning. We're worth 900 million dollars. You want in? Yes, I want in, said the pension fund manager. >> These questions, though, that are just uncomfortable investing in stocks, this is the reason that stocks have the highest return over the long term, because the future is unknown, and you really just don't know.

Like, the people that don't give it the benefit of the doubt or are worried all the time, this is why stocks give you good returns, 'cause they are risky. That's the-- >> Well said. >> All right, next question. >> Okay, up next we have a question from Jim. I'm having an asset allocation dilemma.

In my late 50s, in my late 50s, doing well financially, not to brag, rapidly approaching retirement, and bonds have finally, finally have some yield after 15 years of 0% rates. I know I should be de-risking my portfolio, and now is a great time to do it, but I also know my wife and I have probably 20 to 30 more years to grow our wealth and keep up with inflation once we retire at 65.

I would love to hear your thoughts on how to think about this transition phase in one's investing life cycle, since there's no handbook for this kind of thing. >> Good question. This is the time when your financial plan matters most, 'cause when you're young, the thing that matters most is saving and personal finance.

Middle age, investing probably takes over a little bit, and you wanna compound it and make sure you're investing the right way. But as you approach retirement, that's when you lean on the financial plan and get financial planning advice, 'cause that's when you wanna match up what you're actually gonna do with this money with how you invest it and what your goals are.

So I think that's probably the most important stage of life to have these conversations, right? Is because, you don't know, 'cause that's the thing people have been talking to us for a decade now, is how do I balance out, I know I need to keep growing my money over two, three, maybe four decades when I'm retired, but I also have to have it be safe when I want to spend it.

And that balance is really difficult for people to figure out. - Yeah, I wish we could really answer this question in this forum, but there are so many other variables that a certified financial planner would have to know in order to really satisfactorily tell you this percent in this, that percent in that.

What a certified financial planner is doing in the early stages of talking to a prospective client is trying to figure out, not what should I invest in, it's when is the money gonna be used? And which money should be accessed at what time from which account? Until you do that work and come up with, all right, this bucket of money we know we need for blank, and this is roughly the date.

Now, you don't have to know the answers, but you have to set some parameters, and I think that that's a financial planning question, and we would have to know a lot more info. - Yeah, you have to like, you invert it. You're like, this is how much I'm gonna spend, this is when I'm gonna spend it.

- Yeah, you have to work backwards. - Yeah, now how do I invest it? And that's the thing that most people don't have to think about when they're accumulating wealth. It's like the deaccumulation phase. - I mean, this is what we do for a living, and not to start marketing, but this person is a great candidate for building a financial plan with somebody that knows what they're doing.

- That's the age we tend to get clients at, and a lot of times it's like, maybe something complex happens in their life, they get stock options, but a lot of times it's someone who's, listen, I've built the wealth myself, I've done fine doing it that way, now I need some help and I have to talk to an advisor to figure out the next steps.

- Yeah, I also think people like confirmation, or they like having somebody to bounce things off of, and most people don't have someone in their life that understands taxes, insurance, like long-term retirement and different account types, and it's just-- - Yes, if you text most of your normal friends, "I have an asset allocation dilemma," they're probably not, you're probably not gonna get a good answer.

- They're like doing fantasy football while they're talking to you. They have no idea. All right, we got anything else? - Yeah. - We got one more. - Yeah, last but not least, we have a question from Andrew. - I like this question. - These questions are all 700 words long.

These are like blog posts. - You should see them before I edit them. - Yes, we actually scrub them a little bit. I shorten them and Duncan shortens them again. - I mean, they're great. I don't, no disrespect, they're great questions. - People give us a lot of information.

- Do it, do it. - Okay, I have two young kids and we're starting to discuss giving the older one, age five, an allowance. We have an idea of the amount, $5 a week, and an idea of how to teach them to budget using the three jar method, saving, spending, giving.

However, we can't agree about whether or not to tie this to chores, the arguments being, one, money in the real world is tied to work, so he should learn that lesson. Number two, budgeting, spending, and savings are unique skillset that should be learned separately from chores, which should be done out of a sense of familial, it's a hard word, responsibility, not for a reward.

I was wondering if you give your kids an allowance and which approach you take. - Five seems young to me. So my twins are six, and like-- - I was gonna say, this is not gonna stick. - So a couple months ago, my six-year-old daughter, Kate, said, out of nowhere, she just goes, "Thank you for giving us such a nice house to live in." And I was like, "Oh, that's very kind of you." And she said, "It must be really expensive to buy a house." I said, "Yes, how much do you think it costs?" She said, "I don't know, $19?" Yeah, close.

- Close. - Yeah, so I like the bucketing approach. Yeah, I like the bucketing approach. That's like the Ron Lieber strategy from "Opposite of Spoiled." So they're obviously, they've done some research on this. Josh, you have kids that are older than me. 'Cause I've heard both of these. Some people say the allowance has to be tied to work to show that you get some sort of output for doing hard work, and some people say, "No, no, no, the chores are part of being in a family.

"The allowance is a different thing "to help teach about money." Does it really matter? - I don't think anything that you really teach your kids under the age of 12 is gonna stick. Maybe it does, maybe it doesn't. I think you just give them stuff when they're, let them be kids.

They have their whole fucking lives to worry about, budgeting and all this horrible stuff. You know what I mean? Just let them be kids. And then what's gonna happen is they're gonna start wanting things. Like not silly things from toy stores or like an app on their phone, but they're gonna want stuff.

So for my daughter, it's makeup and clothes and jewelry, very traditional, exactly what you'd expect. And so she babysits. And it's funny, like she asks for something and then my wife will buy it and she'll be like, "All right, I'm gonna contribute my babysitting money." My wife will look at her like, "How many hours of babysitting "do you really think you did?

"Like your contribution is not really going that far yet." But it's the point, like to the question, to answer the question, it is good. It's good for her to feel like she's making a contribution, even though we're buying her like a bag that's like very expensive, you know. It's good for her to give up, have skin in the game.

So I agree with that. My son doesn't work, he's a bookie. He's in five fantasy football leagues. He wins two or three of them every season, including the one at Red Holt's Wealth. And they're not letting him win. He's just a very talented gambler. And then he grabs my phone and he created a Caesars profile for himself.

And he's doing in-game betting while I'm downstairs in the kitchen making a sandwich. And I don't, he has a jar full of cash and I don't even understand where he's getting it from. You know, I'm probably gonna find out he's selling Oxy in ninth grade. I have no idea what's going on.

He's really good with money though, 'cause he doesn't want anything. Like he spends money once a year. He wants like to put money toward going to a Knicks game. Like that's, and he literally, he'll be like, "Here's $300." Dude, I didn't see $300 until I was like 22. - See that's my-- - I don't know.

- My nine-year-old is a saver. - He's very good with money. He does not sell anything. - My daughter, if she gets money for a birthday or Christmas or Easter or whatever, she stocks it away in her thing and she's a saver. That's kind of how I was when I was young too.

And when we forget to get money for the cleaning person that comes every two weeks-- - Yeah, take the right out of the jar. So, oh, so I forgot what I was trying to say. So let me finish this. So what's interesting is that I don't think I can tie chores to money for him.

Like for her, the babysitting, and she'll complain, "Oh, I have no money. "All my friends are doing this thing." It's like, all right, well, for the last two weeks in a row, you got an invite to babysit and you said no. And then by the way, the parents in my town, they're paying like, I think they're paying like $20 an hour.

So you sit in someone's house for 80 bucks on a Friday night, like, do it. My son, he'll be like, that's not-- - That's where the inflation has doubled in the last five years. - So I'm like, I'll give you $5. Take out the garbage this week. I'm like, I'm gonna do it with $5, Dad.

So it's interesting, it's like two very... And so we taught them, I think, the same values and whatever, blah, blah, blah. But people are gonna be people. So I don't think you should torture your kids with chores to teach them the value of a dollar. I don't think it's gonna go anywhere.

- Also, you do run the risk of becoming the parents that all the other kids are afraid of because you're like really strict and you give your kids a list of chores they have to do every week. And there's always that kid. You don't wanna like be that. - Hold on, it's Tom Whalen, delete that comment.

That's wild, don't tweet stuff like that. All right, not that one, the other one. So what was I gonna say? Oh, so yeah, I think, look, I think kids are gonna learn, unfortunately, they're gonna learn about money the hard way. Like they're gonna do stupid stuff with money that either they get for their birthday or that they earn.

Like that's just the nature of life. - Yeah, they're not gonna learn much yet. - They're not gonna learn much. - My daughter at nine has been asking me, kind of trying to figure out what I do for a living. She's most impressed with the fact that we're on YouTube.

But she, trying to explain what the concept of money and investing to a young person is nearly impossible. Well, you have this money, then you make it grow bigger, but it's a concept that is so foreign that it's just, their eyes gloss over and they're done. - You know what it's like, I don't wanna go down this road too far because we know like 100 people in real life that are gonna get really upset about this, but like, I kind of laugh to myself when I see people doing like financial literacy for 18-year-olds, like about retirement investing.

- What are you talking about? - Yeah, you have to wait till it actually matters. - Nobody should be investing for retirement in their 20s. - How about just exploring student loans first? Right, yeah, you have to wait till it's actually applicable. - How about just go be 24 years old and don't save anything?

It's like the only, Ben, I know that's anathema from where you're coming from, but like just my personal opinion is the only time in your life you're ever gonna be 24. What are you worried about retirement? - Yeah, you have no responsibilities, I agree. - You could be dead next year, what are you doing, you know?

- Enjoy yourself, yes. - You have no dependence. This theoretical retirement you're putting money away for, like I gotta save money for my future children's college? No, you don't, you have to go to Mexico. That's what you have to do. So I know that's like, you know, not like a Fintwit approved take, but that's the truth.

- I agree, all right. Thank you to Josh Brown for making it. We have to go now 'cause you have to go record "The Compound" in France probably. - Yeah, like very soon. - You guys kill it every week. Thanks so much for doing the show and I know the listeners love it.

And thanks for having me. - Yeah, thanks everyone for coming on live. Remember, leave us a comment, rate, review. Leave us a question on YouTube or email us askthecompoundshow@gmail.com. We'll see you next week. - See you, Rowan. (upbeat music) (upbeat music) (upbeat music) (upbeat music) (upbeat music) (upbeat music) (upbeat music) (upbeat music) (upbeat music)