Episode 44 - Focus on the Controllables
34:55
Todd Pisarczyk & Nik Miner
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TRANSCRIPT
Welcome everybody to the Momentous Wealth Podcast, where we discuss current issues in the world of finance and break them down into understandable terms to further your education. Momentous Wealth Management is a financial planning and investment management firm based in Washington. We've been serving clients for more than 20 years, and on this show, we take that experience and put it to the microphone in an effort to educate investors in the complex world of finance and financial markets. Hey everyone. Welcome back to another episode of our podcast where we're tackling part two of an ongoing two part series where we're talking about decisions that investors make. Last week we talked about mistakes that are commonly made, and this week we're gonna talk about what should investors do. This episode is with myself, Nik Miner and Todd Pisarczyk. Hello everyone. This is our first attempt at a two part series. Woo. This is very exciting. This is gonna be fun. Yeah. Yeah. So first one's down had, how did, actually one of the most listened to podcasts we've done actually was the three common investing mistakes. Really? Yeah. Did we hit seven? It just kidding. We did hit seven and then we that and we passed it. Yeah. So hopefully all those people will be excited to tune in for this one is where, like you said, we're gonna talk about what you can do instead of what not to do. Yeah.
If this one doesn't get as many listeners as the last one, it's just proof that fear sells and we're just gonna talk about things not to do. Is the market crashing? It is a really good point, actually. Yeah. Yeah. Yeah. And if, you know, we're recording this day on the first day of March Madness. So, yeah. So if the TV is on, if if I sound a little distracted Yeah. Right now, BYU is down 20 points. Oh my goodness. Yeah. So if, if things get a little quiet, you're like, are they there? It's 'cause something's happening on the, on the telly. I'm not Who are you rooting for in March? Madness. I don't watch any college sports and I work, I made my bracket like one half at a time and by the end it got down to Illinois versus Purdue, and I was like, eh, I don't know. I like the underdog. So I went with Illinois to, to win it. I think Illinois, I, I was just using acronyms and I just wrote ILL. Ah, got it, got it. A three seed song. I'm assuming that's Illinois. I don't know. Yeah. Well, I'm currently paying a lot of money every year to Grand Canyon University for my two boys to go there, so I am rooting for them. Yeah. Nice. They're 12 seed fun. Who they playing against first? That's a really great, oh, St. Mary's. Oh, they're playing in Spokane, Washington. Wow. Yeah.
Battle of the Christians. Yes. Is St. Mary's a Christian school? I'd imagine it's Catholic. Oh yeah. Yeah. Oh, that could be interesting. Wow. We'll see. Yeah. Yeah. Okay. Anyways, here we go. Back to investing talk. Let's go. Yeah. Alright, Todd, kick it off. So yeah, again, kind of shifting gears from what not to do, to what to do, you know, and, and I will say like there's, you can get any number of tips on investing from any number of sources. And so really today what we're gonna talk about are just some of the strategies that we use for our clients. And, you know, again, like this might not be right for everybody. And certainly with investing, you never know for sure what's gonna happen. And so obviously as you know, you'll hear, I'm sure all of you always stay and listen to the disclosures at the end of the podcast. It's the best part. It is fascinating. Yeah. But, you know, obviously past performance is no guarantee of future results. We'll just throw that out there and you should always consult with your advisor because what is right for one investor might not be right for another. Yeah. And so I think the biggest thing that we want to hit on today is this idea of just focusing on the things that you can control. Okay. So in investing, there's so many unknowns, but there are things that you can control.
And I coach a high school baseball team, we're kind of at the beginning of our season right now, and we just had this conversation with our team the other day where, you know, we said, Hey, what, what are our goals for the year? Like, and obviously if you're an investor, your goal is probably to, well, I wanna make as much money as I can. Right? Sure. And with the team, it was like, oh, we wanna win state, you know, we wanna win districts, whatever, we wanna beat our crosstown rival. Some of the players individually, they want to play in college. And you know, we talked to them about, okay, those are good goals, but what are the things you can control? Because, you know, you can't, we can't control if the pitch we're facing that day is just gonna be absolutely dealing and, and we can't touch him. We can't control if, if a player's gonna hit four line drives that happen to go right to the defense, but there's things they can control. Like, okay, I am gonna make sure that I'm getting my workouts in and working hard in practice and eating right and getting stronger and, you know, all that kind of stuff. So there's things they can do to give themselves the best chance to be successful, but we can't control injuries, the weather, all that kind of stuff.
And it's really similar to investing, you know, there's so much you can't control. But really what we want to focus on today, and one of the things that we really like investors to, to do is to say, okay, with all the unknowns out there, there, you know, the one thing we can do is we can focus on a handful of things that we, we can control as investors. So those are the things we'll hit on today. Yeah, I think that's a good, I mean, just perspective on life. I mean, just, I mean that, that applies to like, everything, that idea of like, you know, you have no impact over the cards you're dealt, but it matters about how you play 'em. Yeah. What are you gonna do with it? Exactly. Yeah. So number one, and it, and it, this kind of overarches everything, but, you know, and, and again, I, I want you to know that I do think that the things we're gonna talk about today are more exciting than point number one, but we have to start here. Yeah. You gotta start somewhere. Create an investment plan to fit your needs and risk tolerance. That's my favorite part about this job. What do you mean not the most exciting piece? I love making a financial plan. Of course you're gonna say that like, right, like that, I mean, you hear that all the time. Yeah.
But I want you to know, stay tuned because we're gonna get to some more exciting things, but we have to start there because if you're an investor, you really need to come up with a plan, right? Like, you know, it's like you hear all over time. If you just hit the road with no idea of where you're going Yeah. Who knows where you're gonna end up. So you gotta say, okay, here's, here's where I'm trying to get, here's my goal. And then you need to structure a plan around that. And so I use this analogy with clients all the time, but like, let's say for example, you have a meeting in Seattle that starts in five hours and we live in, you know, we're recording the podcast in Vancouver, Washington with no traffic driving the speed limit. It takes roughly two and a half, two hours and 45 minutes to get to Seattle. Okay. So if you have five hours to get there, it would make no sense for you to jump on the freeway and drive 90 miles an hour. And yet Todd still does it. You can do it for fun and an investment portfolio. Yeah. We, we do have clients that say, you know what, yeah, I know I don't have to take this amount of risk, but I enjoy it. Right. And that's okay, as long as you know what you're getting into. Yeah. Right.
But it's really important because if you figure out your destination, you know, retirement, let's just use that an example and how much money you need and when you need to get there, that's really gonna help determine how much risk is appropriate in a portfolio. So if I have a meeting in Seattle that starts in two and a half hours and it's for my, you know, let's say I'm, it's, it's a work thing and if I don't get there in two and a half hours, I'm gonna get fired. Well, I might not have a choice but to get on the freeway and, you know, maybe I'll say, Hey, it's worth a little extra risk. I'm gonna go, you know, maybe 10 over. Yeah. Probably won't get pulled over, probably won't get in a er wreck, but I'm obviously taking on more risk than if I was driving the speed limit. Right? Yeah. Yeah. You might be in a situation where it is appropriate to now. And the other thing I will say is that just like with investing, there's not an unlimited amount of risk you can take on. So as an investor, what you can't say is, oh, no problem. I'll just wait, you know, till my meeting starts in an hour and then jump on the freeway and go 200. Yeah. That doesn't work in investing either. But anyway, so create an investment plan to make sure it fits, fits, fits your needs.
And risk tolerance that we gotta get that outta the way. That's point number one. Yeah. I think too, like aside from risk, having a plan is, is good because it can make things a lot more efficient as well. Like, let's say we're in Vancouver and Todd and I are like, Hey, let's go to New York. And we're like, how do we get there? We're like, Hey, we're just gonna drive Northeast. Like we'll probably get there, we'll find roadside. You know, that'll say, yeah, keep going that way. Or we'll be like, yeah, I think, you know, Montana's east, let's head there first. But in the same sense, if you say like, yeah, retirement's a goal, you can just put money away and be like, I'm gonna go there, but likely you're going to miss a lot of opportunities. You'll waste time, you'll waste money. You might even put on yourself undo emotional baggage. Right? There's, there's a lot of benefits of being, having an efficient trip where you're like, okay, I know my markers that I'm gonna hit. I know my rest stops. I know how to track if I'm on progress and I have an idea of where I'm going. So I think, I think there's a lot of elements, that's why I like making a financial plan and nerding out. But let's hear those other points too, Todd. No, that, that's a really, I, I like that.
'cause it just, it also makes the whole trip more enjoyable. Yeah. I didn't think about that. End of it. That's great. Yeah. Yeah. Okay. So number two is we, we talked about one of the common mistakes that investors make in the last podcast, and that's focusing too much on headlines, right? Mm. Yep. And I'll just, you know, if you didn't listen to that one, one of the really interesting stats that we discussed is the fact that, you know, right now you have Nvidia and the Magnificent seven in the news. But what's really interesting is if we look historically, and again, this data is according to our friends at Dimensional Funds, and they put out an article that was published just a couple weeks ago in March titled Three Common Investing Mistakes. And in that article they talk about the fact that if you look historically and go from 1927 all the way to 1920, or sorry, 1927 through 2023, once a company becomes one of the largest 10 companies on the US stock market, okay? The average return of that company starting the next calendar year. So the average return of companies that hit the top 10 for the first time is actually only half a percent per year for three years following. And it's actually negative 0.9% and negative 1.5% for the following five and 10 years per year. And that's a crazy stat. And again, yeah, we don't know. Times could be different.
We're certainly not suggesting that, okay, don't invest in the magnifi, you know, but it, I just thought that was a really interesting stat. So yeah, there's like an expression that history doesn't repeat itself, but it often rhymes. Yeah. So not to say like past performance is gonna dictate future, but if you're making decisions like, and someone was like, oh, I'm gonna put all my money in the top 10 companies. Yeah. It'd like, well, history would tell you that you're going to lose money then. Yeah. We don't know if that's gonna hold true. But Yeah. So one of the things, and again, this is just something we do at our firm, not that it's necessarily right for everybody, but our partners at, and we, we do a lot of work with a company called Dimensional Funds, and they've done a ton of research on this. In fact, Eugene Fama is one of the people that founded Dimensional Funds, I don't remember when, quite a while ago, but he actually won the, the Nobel Prize in economics. Oh, wow. I don't know the exact year. I wanna say it was like 10 years ago. Yeah. But time flies, who knows since Covid, I don't know. But but that was BC Yeah. Really smart economist.
And they're, they're known for, and this is something that we use in our portfolios, is, is what they've done is they've said, Hey, and again, this is something we do might not be appropriate from everyone, but they've identified certain areas, certain what they call dimensions of expected returns. And so the idea here being you could be a really skilled, better, let's say sport let's, you know, March Madness is on Yeah. Sports betting. There are people that are really, really, really good at sports betting for whatever reason, and they're betting against the spread. And there's a handful of people that sure they can do it for however they can do it. They're able to like long term beat the casinos or the, the bookies or whatever. Yeah. But that, that's fairly rare. Okay. And so the idea being instead of having a portfolio that's based on trying to guess, is Coke gonna outperform Pepsi? Yeah. Right. You basically just say, look, we want to take a more fundamental approach to things. And I will say there are more and more investments out there that use this strategy. So there, there's all sorts of different names for it, and I hate all the names, but smart beta oh, is one of the names that our industry has come up with. Yeah. Or fundamental indexing or passive management. There are all these names thrown out there, maybe like sit and be like, what does that even mean? Right? Yeah.
So the idea is basically saying, Hey, we're just gonna look long term at what has worked over a long period of time, and we are going to structure a portfolio that is not only invested in those areas, but maybe it's a little bit tilted or more heavily weighted to that area. So if you're, if you're investing in a traditional index like an s and p 500 index, a lot of people don't realize like that's a, there, it's a cap weighted index. And we've talked about this on the show before, the fact that if you have $500 in the s and p 500 index, you don't have $1 in 500 companies right now, you have a very, very large weight of your portfolio invested in the Magnificent seven because you have more money weighted in the companies that are larger in the index. Okay. Yeah. Good episode. Go listen to it. Yeah. So some, I I just wanted to highlight a couple things. So the one I wanna focus on today is, and again, we, when we structure portfolios, we believe that you, you should look at these things. So for example, and this, this seems like a no-brainer, but I think it's an interesting stat. And again, this, this is compiled from data from Dimensional Fund advisors. This looks at the markets from 1964 through 2022. Okay. It's like 60 years. Yeah.
And if you, and again, this seems like a no brainer, but you say, okay, I want to have a portfolio that structured more towards highly profitable companies over companies with low profit margins. Okay. Wow. Yeah. Who's making money? Yeah, I wanna invest there. Yeah, okay. No brainer. But, but see if you just buy an s and p 500 index fund, which again, we, we believe our own personal opinion is that, you know, for most of our clients, we have an element of both of these things in there. Yeah. If they're investing in stocks, because we do think that part of your portfolio should be in, you know, just low cost index funds. But if, if you look at that and you say, okay, I wanna, you know, I just wanna be a little smarter about it. What's interesting is if you look at the data from 1964 through 2022, highly profitable companies have averaged 11.51% per year. Versus companies with low profit margins have averaged 7.72% per year. So highly profitable companies have outperformed low profit companies by 3.79% per year. So if I'm an investor, like, Hey, okay, maybe that's something I consider. The other thing, and I'll just throw this one out there, A lot of us have heard of growth stocks versus value stocks. And this one I find very fascinating.
'cause especially over the last probably 10 years or so, growth stocks, all these really, you know, high growth companies we keep hearing about in the news. They, they are doing quite well. But if we go back and look again, the data from Dimensional funds suggest that if you go back and look at the data from 1928 through 2022, value companies, which are kind of the more boring companies in the market, have outperformed growth companies by 3.25% per year over that entire timeframe. Value companies have averaged 12.52%, and growth companies have averaged 9.28. Wow. Okay. So much for growth. Yeah. And who is like one of the most famous investors of all time? Warren Buffet. Warren Buffet. And he's, he is known for being like a value investor. He's out there looking for deals. Yeah, okay. Totally. And over the long run, you know, so, so again, I guess what we would try to say by that is like, again, it's kind of taken that don't get caught up in the headlines, don't structure a portfolio that's just these high growth, what's in the news? What's doing great lately that might work short term, but long term, you know, maybe consider having some of your portfolio in a different type of strategy that looks at some of these areas that long term might be, yeah. I think a better opportunity.
I think if we were to dumb this down a little bit too, and ask somebody like, do you think a stock can grow at a same constant rate forever? We'd be like, no. At some point that's gonna plateau. And I'd, I'd probably suggest that a lot of these companies, and I think that's what the data that you're referring back to is that once they hit the top 10, you know, they kind of get stagnant. But I'd say once, once they hit that really high level, it's like you can't keep on that growth trajectory forever. Right? So if you're buying a growth stock that grew a bunch, you're likely buying it at the top of its growth. Yeah. And you're missing out on opportunities. Yeah. And you know, the news is only gonna highlight the ones that, that skyrocketed to a point. Yeah. And you're hearing about it now. It's like, if you're hearing about the company now at the top, you've missed your chance. Yeah. You're probably better off buying a company, like you said, that's under value, that has a lot of that long-term growth opportunity. Yeah. 'cause it's not sitting at the number one spot. Yeah. And you know, it all comes down to diversification, right? Yeah. So it's just make sure your portfolio's diversified and Sure. Like part of your portfolio should def you know, no, I shouldn't, I can't say definitely. Yeah.
Most likely, you know, if you're an investor having part of your portfolio, if stocks are appropriate in some of these higher growth companies Yeah, for sure. Like if you have the right timeframe and risk tolerance and all that kind of stuff. Yeah. But, you know, diversification oftentimes tends to be your best ally in this. And on that point. So number three, we believe, and again, this, this is just us, but we believe that portfolio should be, well it's not just us. There's a lot of data behind the things that we're saying. True. Diversify globally. So, and, and this, this, I'll just, you know, we won't spend a lot of time here, but I, I found again, and pretty almost all the data we're going over today is from, from dimensional fund advisors, from the statistics they've compiled. But one thing that I found very interesting is if you look at equity returns of developed markets, okay? So you look at all the developed markets across the world, who would that be? US, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the us. I did not know you had that list ready. I didn't, it was in my head. What do you mean that's impressive for, yeah. Okay, so Nik, I'll ask you, I'll turn it on you. Oh, since 2003. Okay.
How many years since 2003 has the US been the highest performing market? Every single one of them. Eh, USA. I have no idea. Do you think that one of our points would be diversified globally if the US outperforms every year? Yes. Yes I do. For the sake of diversification, risk management, just in case. Yeah, exactly. Yes I do. Because at some point it's gonna change, right? It's gotta, yeah. I got a batter who's striking out at every at bat, but at some point, if I keep playing this slot machine, I have to win eventually, right? Yeah. The US if, if you look at all those com countries, the US has been, so if you look at 2003 every single calendar year, 2003 through two 2022, the US has been the best performer one time. No. Yep. One time, I don't believe you. 2014. Well, you got a bone to pick with dimensional fund advisors then. That is wild. And actually this data is from, this is in US dollars. Yeah. Okay. And it's data that they compiled from MSCI. Okay. Yeah. Okay. Yeah. So 2014, I mean, I'll trust this billion dollar company over myself. That's wild. Now, now here's what's interesting. In 2022, I'll bet you can't guess who, who do you think was the highest performing market in 2020 2 22? That was a I made it easy for you. It's not the us. Yeah. That was a rough year. Bad year. Yeah. Oh man.
I don't know Portugal. What? Yeah, because their market was up 0.2%. Pretty much everyone else is down. That's great. So as US investors, and I will say, I don't know this for sure, but I'm pretty sure that most of our podcast listeners are based in the US Yeah. You know, we, we, we tend to, you know, like we're all about here. We, we pay attention to the US market, right? Yeah. But there's a world of opportunity, literally a world Yeah. Outside the us So literally a world. So you should, you know, again, we believe diversifying globally Yeah. Tends to be a good idea. Love it. I didn't That's great. I learned something new. So did everybody listening? I believe. Yeah. I'd be surprised if somebody was like, I knew that already. It's probably our friends of dimensional. They're like, we knew that. Yeah. Okay. Got two more to go here. One again, this, this really hits the nail in the head when you're thinking about things you can control. We often as investors think only about money that we make, but a penny saved is a penny earned. So the other thing you can do to increase returns in your portfolio is to reduce expenses. So manage expenses, turnover, and taxes in your portfolio. I, I, I think taxes, it's, it's interesting how many investors, I feel like they really don't take taxes into account in their portfolio. Yeah.
If you have a portfolio and you're like constantly trading and you're realizing capital gains and, and sometimes investors, especially like when day trading was a really huge craze. Yeah. A lot of people didn't take into account like, oh, well every, you know, when I day trade, I'm paying long or short term capital gains tax, which is regular income tax rates. Yeah. And so that's something that you need to consider. So if you can save money in the portfolio, your net after expense return is gonna be higher. So, you know, we tend to believe in, you know, looking at low cost investment options to keep, keep expenses low. If expenses are lower, your net returns will be higher. And then also managing taxes. Yeah. So again, that's something that you can control. You know, I'm not gonna say easily, but it's kind of a, that's something that's kind of low hanging fruit. Yeah. You know? Yeah. So, I mean, it's, it's, I mean, it's really simple. It doesn't really matter if you make a million dollars if you're out there blowing all your million dollars. Yeah. I'd rather be a guy making $10,000, you know, keeping all of it than somebody who's spending every, every penny you got. Yeah, exactly. Okay. So the last thing is we want to stay disciplined through market dips and swings.
And then also, and we talked about that last time, but we wanna talk about a strategy today that, that also is kind of a, again, being proactive. So, you know, obviously we know that markets go up and down. So one of the stats we went over last time was the fact that, you know, if you miss just a handful of really good days in the market, 'cause like, let's say things are crazy. Yeah. And so you decide, hey, I just want to sell, put everything in cash and kind of wait it out. Well, again, quick refresher, if you look again, this is, this is using data from the Russell 3000 index returns from 1999 through 2023. Over that time period, if you invested a thousand dollars in 1999, it grew to $6,449 by the end of 2023. But if you missed the best week in the market, which was the week ending November 28th, 2008, which is right in the middle of the financial crisis. So I'll bet a lot of people missed that week. Yeah. 'cause it was freaky. You, instead of having $6,449, you only had 5,382. And it just kind of goes on if you missed the best month in the market, 'cause again, you're trying to wait it out, you missed, or sorry, your account on lag grid of $5,150. And if you missed the best three months, which was kind of around this covid time.
So if during covid you kind of paNiked and said, Hey, I'm getting outta here. If you missed the three months ending, June 22nd, 2020, instead of having a thousand dollars, or sorry, $6,449, your investment grew to $4,546. Okay. So staying disciplined through market ups and downs, and again, we just hit record highs this week. So here's the one thing I always think about. We're at record highs. Yeah. So we, we can say that it's always, it's always work to hang on. If you're invested in just the market, the s and p 500, whatever, and you've ridden out the bumps, you've been compensated. 'cause obviously like 2022 was a crazy year. We've had a lot of turmoil this year. Yeah. But we just hit a record high this week. Yeah. You know, so you know, that that kind of proves like markets recover so far, have recovered from every, you know, downturn we've ever had. And so ever, you know, that's, that's part of it is like, hey, just staying disciplined. But then also there's a, there's a strategy that often goes unnoticed. But if, if you can not only stay disciplined but then implement a strategy, and a lot of you have heard of rebalancing. Yeah. Which I've got some details on my turn. Yeah. Todd usually comes to, let's go these with the, the papers. And I'm just here for color commentary, but I have some numbers and rebalancing is pretty, pretty interesting.
So what it is from a conceptual level is, let's say you have a portfolio that you've decided is gonna be a 60% stocks, 40% bonds, that that's what matches your, your goals and your timelines. And, you know, we've done a plan and we say this is the right portfolio for you. Rebalancing is once a year coming back, or, I mean, it could be more, but we'll just say once a year for the sake of the details I'm about to lay out. But once a year you come back and say, let's make sure that we're still at 60% stocks and 40% bonds. This is important because if you think about it, stocks are long-term growth vehicles. Bonds are for price, stability, and income. So by nature, historically, so far anyways, stocks have grown faster than bonds. And so over time, you're, you're going to what they call drift into a a different allocation. It's, in some seasons, bonds could drift higher than 40%. But most often what we've seen is that stocks will drift higher than 60%. And from a return aspect, Vanguard who I'm gonna be quoting Vanguard for kind of this little segment. Oh, mixing it up, huh? Yeah. Yeah. And remind Nik did actually, what, I don't know if we remember the episode number. We actually, this is a little snippet we did a pretty lengthy podcast with Yeah. Maria Quinn from Vanguard. Yeah. One of the senior advice strategists.
So that was an awesome episode. I felt like I was podcasting out of my element. She did great. I did terrible. Don't go listen to that podcast. Well now see, hey, way to tease it. 'cause now you know, everybody will, oh gosh. I know. I think about that. I'm like, man, it'd be great to have her back on. And then I think about asking her, I'm like, eh, nevermind. We'll just find new people. But anyways, rebalancing this act of making sure that your investments allocations are in line adds 14 basis points from their studies to the average investors portfolio. So Nik, could you please for the listeners explain what is a basis point? Yeah. It's one, let's cut the lingo here. I know it's 100th of a percent. So 14 basis points is 0.14%. Yes, that's right. So what's interesting is if we look at that in dollar terms, yeah. Okay. So 0.14%, 14 basis points, whatever lingo we want to use Sure. Might not seem like a lot, but hypothetically, if you invested a hundred thousand dollars for retirement, let's just say, and you left it there for 30 years, so Yeah. Long time. Okay. Yeah. After 30 years, that 14 basis points are 0.14% would equal another $84,368 in your portfolio. Oh wow. Okay. Yeah.
And so again, maybe you look at that and say, and I will say if we, if we assume you get a 10% return, if you didn't rebalance and didn't get that extra 14 basis points, you'd have come in at just a little under 2 million. If you rebalance and you get that extra 0.14%, again, data, according to Vanguard, your portfolio would've grown to $2,068,108. But it's an additional 84,368, which on a hundred thousand dollars investment. So that, that's what we have to think about is like, yeah, you got a couple million dollars, so maybe 84,000 doesn't seem like a huge amount of money, but you only invested a hundred thousand dollars. So it's basically almost all of what you invested, earned all over again. Just, and, and most of the time, like I know us as advisors, we do this for our clients, and it's, it's just, it's not, it's again, it's low hanging fruit. Why not? Yeah. Make a little extra money. Yeah. If somebody came to me and was like, or if I went to a client, let's say, and I was like, Hey, do you want another $84,000? And what I'll do for that, for you is just make sure that your portfolio stays where it should be. Would, would you take me up on that? I would. And also, yeah, it'd foolish not to. Yeah. And also the risk element.
So, and also, by the way, for those of you who are interested, it's episode 28. Oh no. The Maria Quinn. Yeah. Wow. But, but we dive deeper into this subject. We do. So, you know, and I will say the content that Maria brings is terrific. There's so many elements to this study that are, are really fascinating. So essentially, and I'll just do a plug for it. Vanguard did this huge study to say, does working with a financial advisor bring actual value to a portfolio above being invested in an index? So let's say you had two advisors that were invested in an index, or one, two investors. Yeah. One working with an advisor, one not Vanguard study says that if an advisor is doing these seven things that it's gonna return up to and even exceed in many cases, 3% above and beyond. Yeah. So a lot of different things. Yeah. So there you go. So there's some tips for things you can do. And again, these are just, these are some of the things that we do Yeah. For our clients. Not saying it's perfect, not saying it's right for everybody. Yeah. But just some really helpful, you know, again, I, I guess the way I would look at it are, you know, what are some things you can do in your portfolio? What are some of the things you can control? Which should be kind of like, Hey, I'm trying to get better at baseball.
So here's a little tips on maybe working out, exercising, practicing hard, you know, those kind of things. Not gonna guarantee success by any means. Yeah. But hopefully it'll increase your odds of performing. Yeah. A little better in the portfolio. As always, if you, if you like our podcast, we'd really appreciate if you give us a ranking. And also in the comments, feel free to comment, but also if there's topics that you want to know about, please let us know. Yeah. We'd love to cover anything that you might find interesting. So happy if you had drop a note in the comments of what, what topics you might like us to address on this podcast. Yeah, we, we do read those. And I will say, as a closing note, one of our points was to not watch the news. I stand behind that. If you wanna be a better investor and happier person, turn off the news, go outside and get off social media. All right. Thanks everybody. I don't agree with that, but let's bye. The opinions expressed in this podcast are for general informational purposes only, and are not intended to provide specific advice or recommendations for any individual or specific security. It is only intended to provide education about the financial industry to determine which investments may be appropriate for you. Consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results.
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