Keep it Simple

What to do about these AI Stocks

Get ready for an insightful discussion as we explore the intriguing intersection of artificial intelligence (AI) and the stock market. We start off by examining the surprisingly strong performance of Democrats over Republicans in the stock market, and the role tech stocks play in this equation. We raise questions about potential insider trading, providing a thought-provoking angle on the information disparity between politicians and the public. This episode also delves into the attention-grabbing headlines that fuel curiosity and speculation about AI's role in the stock market.

As we proceed, we highlight the importance of cautious investing, discussing the recent surge in market strength driven by mega-cap tech stocks. The conversation steers you away from impulsive stock picks and underscores the need for comprehensive research and secure valuation methods. The discussion further illuminates the role of AI in investing, citing the East India Trading Company as an illustrative example of leveraging new technology for significant gains. From exploring the concept of diversification to understanding the investing mindset of today's youth, we leave no stone unturned in this exciting episode.

 

[0:00:01] AI's Impact on Stock Investing
[0:12:49] Risks of Speculating on AI Stocks
[0:24:53] The Role of AI in Investing

Book Breakdown Part 4: The Psychology of Money

In this episode, we delve into the final segment of our review of “The Psychology of Money” by Morgan Housel. But before we do, we provide a brief overview of the Southern LA Bank's crash, caused by a drying revenue stream for clients and miscalculations about interest rates. Understanding your banking choices and conducting research is crucial, and remember the distinction between brokerages and banks.

 

We explore the disparities between day traders/short-term investors and the needs of long-term investors. Long-term goals should not mimic short-term strategies. Time horizons are key, offering success predictions. The media's focus on pessimism caters to our planning for worst-case scenarios, while optimism often raises suspicions of sales pitches. Progress is gradual, setbacks sudden. Don't solely heed pessimism; avoid overreactions.

 

Our worldview is limited, leading to shaky decisions based solely on personal perspectives. This is evident in active vs. passive investing—actively managed accounts tend to yield less over time. Embracing humility in finances, relinquishing ego, and managing money for peace of mind is vital. Humility matters in success. Outcomes are shaped more by behavior than portfolios. Care for yourself; small actions accumulate. Focus on control, release what you can't. Join us for insights on mindful financial management on this episode on Keep It Simple!

 

Click here to connect with the Asset Builder team

 

[00:00] Show intro 

[00:29] Welcome to the show!

[01:07] Overview of Southern LA Bank crash 

[12:02] Chapter 16
[17:24] Chapter 17

[22:50] Chapter 18

[27:42] Chapter 19

[32:03] Giveaway: win this book!

[32:50] Outro 

 

 

Book Breakdown Part 3: The Psychology of Money

In this episode of Keep It Simple, hosts Adam and Joey continue to talk through "The Psychology of Money'' by Morgan Housel. Adam and Joey delve into the concepts of rationality and reasonability in financial decision-making. Chapter 11 of the book centers around reasonable vs. rational decisions. While some investors might be comfortable taking on more risk, adopting a double leveraged portfolio, although rational, may not be reasonable for most due to its extreme volatility. They stress the importance of constructing an investment portfolio that maximizes returns while allowing one to sleep soundly at night.

 

This episode highlights the inverse relationship between reward and risk, underlining that higher rewards often entail greater risks, which might not always be immediately apparent. The hosts draw on historical perspectives to explain that change is a constant, and history serves as a guide for the future, despite the presence of unforeseen events. Real-life instances involving clients' market concerns are shared, advocating for a balance between knowledge of historical patterns and preparedness for surprises.

 

Adam and Joey advise against over-reliance on one's expectations and suggest building a strategy that incorporates diversification. Recognizing the inevitability of being wrong at times, they stress the importance of a margin of safety. The podcast underscores the difficulty of forecasting one's future self due to personal growth and change. Regularly revisiting and aligning goals is recommended to avoid divergence.

 

Basing goals solely on trends is something to be cautioned against, and Adam and Joey highlight that everything in life involves trade-offs. They use investment scenarios to illustrate the trade-off concept, like choosing between low returns and avoiding high interest rates. Emotion-driven reactions are discouraged, as they can lead to mistakes. Overall, the episode promotes a thoughtful, reasoned, and adaptable approach to financial planning and decision-making, grounded in both historical knowledge and an understanding of one's evolving self.

 

Click here to connect with the Asset Builder team.

 

[00:00] Show intro 

[00:29] Welcome to the show!

[01:14] Chapter 11 

[08:13] Chapter 12

[14:22] Chapter 13

[21:13] Chapter 14

[28:12] Chapter 15

[33:56] Wrapping it up 

 

2023 Q2 Review

In this episode, we're taking a comprehensive review of the market performance during the second quarter to help investors plan for the future. Overall, it was a fruitful quarter with most investments on the rise. As we delve into various premiums, we'll explain their significance and how they affected returns. It's essential to understand that pursuing maximum profits may lead to challenges.

 

We're also exploring asset classes and the trends observed last quarter. Additionally, we'll discuss sector patterns and how some companies are inflating prices or presenting themselves as tech firms, regardless of their true nature. Notably, the energy sector outperformed in quarter two.

 

Diversification across sectors becomes crucial in optimizing returns and reducing volatility. For those disappointed with target premiums' performance, we'll explain why it's not always wise to discard low performers. Join us as we delve into these crucial insights to help you make informed investment decisions moving forward.

 

 

Click here to get in touch with someone from the Asset Builder team. 

 

[00:00] Show intro 

[00:28] Welcome to 

[01:36] Summary of the quarter 

[03:39] How premiums played out in Q2 

[09:53] Asset classes 

[12:46] Sectors 

[19:40] If Q2 premiums didn’t do well, what do I do?

[24:25] Small companies vs. large companies 

[26:04] Takeaways 

[28:48] Outro 

Book Breakdown Part 2 The Psychology of Money

In part two of our conversation about The Psychology of Money, by Morgan Housel, the Asset Builder team is getting into a good money mindset, sitting in discomfort, being less flashy, and more. True freedom isn’t being able to spend as much money as you want when you want to; instead, it’s the ability to control your life. Focusing on your own journey to financial freedom doesn’t mean getting a flashy car to impress people. 

 

Since there’s no financial literacy classes in the high schools we went to (and most likely not where you went either), we hope you’ll tune in to learn more about shifting your mindset on wealth as we breakdown this gem of a book. Remember: true wealth isn’t what you see because most of the “wealth” you see is actually a depreciating asset. 

 

Connect with the Asset Builder team:

assetbuilder.com

 

[00:00] Show intro 

[00:28] Welcome to part two of the book breakdown!

[01:55] Ch. 6: Success doesn’t come 100% of the time

[08:40] Ch. 7: You can become a slave to stuff

[12:45] Ch. 8: The man in the car paradox 

[16:39] Ch. 9: Wealth is what you don’t see

[19:35] Ch. 10: Save your money

[24:05] The importance of financial literacy

[24:55] Free books!

[25:24] Wrapping it up

[25:52] Outro 

Book Breakdown: The Psychology of Money by Morgan Housel

Is Keep It Simple turning into a book club? We’re breaking down The Psychology of Money by Morgan Hauser. Our conversation today is getting deep and meaningful, and goes way beyond money and financial status. We’re talking about some of our favorite parts from the book and key takeaways we have from each chapter.

Join us for part one of this conversation and don’t forget to check back for part two! We have nineteen chapters to get through together and you don’t want to miss it. From mindset to self-discipline to goal setting, this episode has value for the most seasoned investor to the newbie who is just starting out.

[00:00] Show intro

[00:29] Welcome to the show

[02:02] Today’s topic: The Psychology of Money

[04:20] Chapter one

[07:56] Chapter two

[14:13] Chapter three

[22:18] Chapter four

[28:22] Chapter five

[32:04] Make a plan

[32:41] Wrapping it up

[34:12] Outro

Top Questions to Ask an Advisor Before You Sign On

When you’re looking for a financial advisor, you are trying to find someone to trust with your hard earned money. Do a little research before you interview a potential advisor so you know what your investing philosophy is to find an advisor that matches your view. Really get to know your potential advisor’s qualifications and reasons for being in the business.

Having up front conversations between clients and advisors is imperative to prevent unnecessary road bumps along your investment journey. Asking the questions below will allow you as a client to find an investor that matches your investment philosophy and allows advisors to see if potential clients fit with their firm’s investment strategy. Connect with the team: podcast@assetbuilder.com assetbuilder.com/podcast

 

[00:00] Intro

[00:29] Things to ask your financial advisor

[03:43] What is your investing philosophy?

[08:27] Do you use technical analysis?

[11:16] Do you use market timing?

[15:36] Why are you in this job?

[21:09] Are you a fiduciary? What are their qualifications?

[22:57] Why do you feel you need a financial advisor?

[26:48] What is the biggest frustration with other advisors?

[27:32] How did you respond emotionally to the bear markets?

[32:11] Where should I be in a year?

[37:27] The most common question from potential comments

[40:51] Book recommendations and wrapping up

[42:20] Closing things out

Everything You NEED to Know About Secure Act 2.0

Today on Keep It Simple we’re getting into a new law, The Secure Act 2.0. This law is the government’s way to remove obstacles to retirements to make it easier for the average American to save money for retirement. The Asset Builder team is explaining some of the changes this law brings that normal individuals should be aware of. 25% of American adults don’t have savings, so if you fall under that statistic the Secure Act 2.0 helps you out by allowing you to catch up on your retirement contributions.

Arguably the most important change that comes from the Secure Act 2.0 is the rules surrounding Roth accounts. We’re talking about Roth accounts in detail and these accounts can be huge assets to individuals. QCCs are also changing a little bit and are a great tool to use. Arguably the biggest change Secure 2.0 is making is requiring businesses to defer 3% of their employee’s incomes into retirement accounts. This law will change things for you, whether in big or small ways, so it is important for you to go talk to your advisor to find out how it’ll impact you.

Connect with the Keep It Simple team online at assetbuilder.com

[00:00] Show intro

[00:30] Welcome to the show

[02:01] Changes to the laws: Secure 2.0

[03:54] Why is the government changing retirement?

[07:35] The changes brought by Secure 2.0 individuals need to know about

[09:47] What is a catch up contribution?

[14:58] Matching towards your Roth IRAs

[18:50] The math behind Roth IRAs

[21:43] Qualified charitable contributions

[25:28] Requiring all companies to defer 3% to employee’s retirements

[29:01] Student loan forgiveness

[30:52] Go talk to your advisor

[32:19] Closing comments

What Should You Do With A Christmas Bonus?

2022 was a rollercoaster of a year, but some lucky people got a year end bonus. The key to spending a bonus well is to make a plan for when that extra income rolls into your bank account. In this episode of Keep It Simple, we’re laying out the things you should consider when you’re planning for that Christmas bonus.

 

Whether you decide to pay off debt, add to your retirment account, or invest, use your bonus to set yourself up for success. Life happens, and making sure you’re ready to roll with the punches financially. Aside from backing up your financial future, using a bonus can be a great opportunity to invest in yourself. All this advice and more on today’s episode of Keep It Simple.

 

Listen in and don’t forget to check out our website linked below.

www.assetbuilder.com

 

[00:00] Show intro
[00:29] Shout out to Joey!
[01:19] Paying off debt
[03:47] Debt considerations
[05:11] Bulk up your retirement account
[07:49] Investing that bonus
[11:29] Restocking an emergency fund
[14:19] What is a 529 plan?
[18:36] Investing in yourself
[23:10] Minimizing the amount of cash you’re sitting on
[24:16] Saving for your next vacation or other big ticket items
[25:45] Closing comments
[27:09] Outro

 

December Notebook Dump - Inflation, Debt, and the Fed

We are welcoming Joey, a lead advisor here at Asset Builder, to this episode of Keep It Simple. Join us for a brain dump where we’re talking about inflation and debt. Inflation is starting to slow which indicates interest rates will slowly start coming down. We’ve all been on the struggle bus with the high cost of living that’s come with inflation, especially our grocery bills. We’re going to discuss some things we’ve done to help combat the cost of inflation. Alongside inflation, debt has been increasing. With auto and home loans, household debt has been steadily growing. So how do we start the conversation about it? Listen in to find out. Towards the end of this episode we’re pulling out our crystal balls and making predictions for where 2023 is going. 

 

Connect with Adam or Joey

Website- https://assetbuilder.com/

  

[00:00] Show intro 

[00:29] Welcome to Joey 

[02:35] Inflation: the one and only 

[08:47] Income vs. debt 

[15:46] Having conversations about debt with people 

[21:31] Predictions for 2023

[24:48] Some things Adam and Joey are handling from clients

[28:16] Wrapping it up