312: [Justin Kuyper] Ai Review
Today, we're diving into a fascinating discussion about OpenVest, a fintech company that's making waves by claiming to bring high-level investment strategies to the everyday person. You know that pesky sandwich generation? Well, they're the ones feeling the squeeze trying to juggle raising kids and caring for aging parents, all while building wealth. OpenVest is stepping in, promising to democratize investing with low fees and impressive potential returns. We're talking about starting with as little as $300 and possibly seeing returns of 120% to 300% over three years! But hold on—any time you hear numbers like that, you’ve gotta wonder about the risks involved. So join us as we unpack their approach, challenge the traditional investment landscape, and ponder whether this could really be the game-changer for folks looking to build a financial legacy.
This episode is a real eye-opener for anyone feeling the crunch of the sandwich generation—those caught between raising kids and caring for aging parents. Justin Kuyper from OpenVest joins us to chat about how his fintech company is shaking things up in the investment world. We’re exploring how OpenVest is claiming to democratize investment strategies that were once just for the big dogs, like hedge funds and private equity. If you’ve ever felt like you were missing out on the financial good stuff because of high fees and confusing options, this conversation is for you!
Justin dives into OpenVest's proprietary algorithms that are designed to bring institutional-level investment performance to the everyday investor. He’s not mincing words when he criticizes traditional retirement plans, calling them “overly diversified bundles of garbage” leading to “flatline growth.” That’s a bold statement! We discuss the importance of understanding the risks of chasing high returns, especially when they come with the potential for volatility. After all, high reward often means high risk, right?
The conversation flows as we examine OpenVest’s fee structure, which is refreshingly simple and low-cost compared to the usual suspects in the investment world. Imagine investing without worrying about those pesky percentage fees gnawing away at your returns! Justin discusses scenarios where low fees can significantly impact long-term wealth building. It’s a wild ride through the complexities of finance, but with a refreshing twist that keeps things light and fun. If you're part of the sandwich generation or just curious about innovative investment solutions, this chat is packed with insights that could change how you think about your financial future!
Website: https://openvest.co/
Thank you for listening!
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Transcript
Welcome to the deep dive.
Speaker A:Today we're digging into just one source, but it's a really interesting 1.
Speaker A:Episode 312 of the about that Wallet podcast.
Speaker A:It features Justin Kuyper.
Speaker A:He's the CEO and founder of OpenVest.
Speaker B:Right.
Speaker B:And that original episode, it was really focused on the financial needs of what they call the sandwich generation.
Speaker B:You know, people trying to raise kids, maybe look after older parents too, all at the same time.
Speaker B:Big financial pressure.
Speaker A:Yeah, exactly.
Speaker A:And they're looking for solid, you know, long term ways to build wealth.
Speaker B:So.
Speaker A:So openbus claims they've built something using fintech to help with exactly that.
Speaker B:It's a pretty bold claim, actually.
Speaker A:It is.
Speaker A:So our mission here is to understand their solution.
Speaker A:They're essentially saying they can bring institutional level investment performance, the kind of usually just for millionaires or hedge funds.
Speaker B:Right.
Speaker B:The really high end stuff, and bring.
Speaker A:That to the average person, the retail investor.
Speaker B:So how do they propose doing that?
Speaker B:It starts with their tech, according to Kuyper.
Speaker B:He talks about these proprietary algorithms they use, and apparently they're based on the same kind of information, the same data sources that the big elite hedge funds and private equity firms use.
Speaker A:Huh.
Speaker A:So the idea is to sort of distill all that complex exclusive knowledge down for regular users.
Speaker B:That's the pitch.
Speaker B:Democratize the information, democratize the trading power.
Speaker A:And they're pretty critical of the, well, the current options most people have.
Speaker B:Oh, yeah.
Speaker B:Quite harsh.
Speaker B:The source material it really lays into.
Speaker B:Typical four 1Ks and IRAs, calls them, and this is a quote, overly diversified bundles of garbage.
Speaker A:Wow, okay.
Speaker B:Yeah.
Speaker B:Leading to, quote, flatline growth.
Speaker B:Basically saying they don't really perform.
Speaker A:Which definitely highlights a gap, doesn't it?
Speaker A:If you believe their critique.
Speaker A:A gap between what the pros get and what most people are offered.
Speaker B:It really does.
Speaker B:And Kuyper positions openvest as the answer to that gap.
Speaker B:He argues that the traditional high costs, especially those percentage based fees, combined with poor performance, well, that's what stops the sandwich generation for building a real legacy.
Speaker A:Right.
Speaker A:Those fees can eat away at returns over time.
Speaker A:So what about performance?
Speaker A:They must be claiming something pretty good to back this up.
Speaker B:They are.
Speaker B:And this is where it gets, you know, pretty compelling, but maybe also raises questions.
Speaker B:First off, you can start with just 300 bucks.
Speaker B:So low entry point.
Speaker A:Okay.
Speaker A:That's accessible.
Speaker B:And then the returns.
Speaker B:Yeah, they cited platform numbers showing long term options returning anywhere from 120% up to 300% over the previous three years.
Speaker A:Whoa, hold on.
Speaker A:120 to 300% over three years.
Speaker B:That's what was cited.
Speaker B:And they expect or hope to continue seeing 30% to 40% annualized returns.
Speaker A:That's.
Speaker A:That's massive.
Speaker B:It is, but okay, we do need to pump the brakes just a little here.
Speaker B:Anytime you see three year returns like that, especially tied to these kinds of institutional strategies.
Speaker A:Yeah.
Speaker B:You absolutely have to ask, what is the risk?
Speaker B:What kind of risk profile are we to talk about?
Speaker B:Are these complex strategies?
Speaker B:Are they volatile?
Speaker B:Is this really the right thing for someone's like retirement nest egg?
Speaker A:That's a really crucial point.
Speaker A:High reward often means high risk.
Speaker B:Exactly.
Speaker B:So they claim the high yield, but you, the listener, always need to weigh that against potential volatility and risk.
Speaker B:It's essential.
Speaker A:Absolutely essential.
Speaker A:Caveat.
Speaker A:But okay.
Speaker A:Even with that skepticism, if they could deliver even a fraction of that performance to regular folks, normally the fees would kill you.
Speaker B:Right.
Speaker B:And that's the other big part of their model.
Speaker B:They pivot hard away from percentage fees.
Speaker A:Okay, how does that work?
Speaker B:It seems very customer centric, focused entirely on flat fees, simple amounts.
Speaker B:For regular retail investment accounts, they say it's capped.
Speaker B:Maximum $3 a month.
Speaker A:$3 a month?
Speaker A:Max.
Speaker B:That's the claim less than your coffee.
Speaker A:That's incredibly low compared to typical management fees.
Speaker B:What about retirement accounts?
Speaker B:The IRAs, 401ks?
Speaker B:The sandwich generation needs still flat fees.
Speaker A:Just a bit different.
Speaker A:The range cited was $5 up to $40 a month.
Speaker A:But Kuyper mentioned the most common rate is around $10 a month.
Speaker B:Ten bucks a month?
Speaker A:Yeah.
Speaker B:Even 40 bucks, that's still potentially way cheaper than many mutual funds or ETFs charging a percentage.
Speaker B:Exactly.
Speaker B:It's explicitly stop that, you know, constant drain on your returns from percentage fees.
Speaker B:Compounding works much better without that drag.
Speaker A:And that lower cost feeds directly into the whole legacy building idea they push.
Speaker B:Yeah, he gave an example, I think about compounding.
Speaker A:He did said something like if you have $100,000 and it compounds at 20% a year for 20 years.
Speaker B:Right.
Speaker B:Turns into something huge.
Speaker B:Like $3.8 million.
Speaker A:Exactly.
Speaker A:But his point was if half your potential return gets eaten by fees along the way, you just, you never get there.
Speaker A:You don't see that transformative growth makes sense.
Speaker B:The lower the fee friction, the better the compounding effect.
Speaker A:Now, people might hear all this, especially from a newer company, and worry about trust.
Speaker A:Right?
Speaker A:Stability.
Speaker B:Sure, that's always a concern with fintech disruptors making big promises.
Speaker A:But Openves apparently didn't just like spring up from nowhere.
Speaker A:Kuyper mentioned it's built on top of.
Speaker B:Existing infrastructure yeah, specifically Interactive Brokers, which is know a huge established public company, SEC registered.
Speaker A:No, that provides a layer of stability infrastructure, presumably.
Speaker B:Yes, it lends credibility and suggest the plumbing the back end is solid supports their big goal, helping people build wealth for the next generation.
Speaker A:So openvest is essentially arguing that the future of investing for regular people should look like this.
Speaker A:Access to sophisticated strategies minus the crippling.
Speaker B:Fees, pretty much making serious wealth creation, especially for that squeezed sandwich generation, feel attainable again.
Speaker A:Okay, so wrapping this up, what's the big picture here?
Speaker A:Openvest looks like it's trying a real disruption.
Speaker A:Merging those high end hedge fund type strategies with a simple, flat, very low fee structure.
Speaker B:Yeah, fundamentally challenging the old way of doing things, especially for long term investing for ordinary people.
Speaker A:Which leaves us with a provocative thought for you, the listener.
Speaker B:If this platform, OpenVest can genuinely offer access to institutional level tools for just $3 a month.
Speaker A:Right?
Speaker B:And it makes you wonder, doesn't it?
Speaker B:What other percentage fees, maybe hidden, maybe obvious, are currently holding you back from really multiplying your wealth?
Speaker B:Something to think about.
Speaker A:Definitely something to think about.
Speaker A:Now that you've listened to this deep dive, we really recommend you go listen to the full original episode about that wallet.
Speaker A:And hey, while you're at it, please leave us a five star review on Apple Podcasts and Spotify.
Speaker A:It really helps.
