315: [Andrew Gold]: The Generational Wealth Shift
In this episode, we’re joined by Andrew Gold, a wealth strategist and father, who shares his insights on instilling financial wisdom in the next generation. As we explore the impending transfer of wealth estimated to be between $60 to $80 trillion, Andrew emphasizes the importance of teaching kids about money management early on. He discusses practical strategies for parents to help their children understand the value of money, the significance of starting investments young, and the importance of balancing saving and spending. From 529 plans to Roth IRAs, we dive into various investment accounts that can set children up for financial success. Andrew also shares his personal journey, highlighting the lessons he learned from his own upbringing and how they shaped his approach to wealth management. Tune in for actionable tips and a fresh perspective on financial planning that prioritizes both present enjoyment and future security.
Takeaways:
- Teaching kids about money management early can lead to healthier financial habits later in life.
- Investment accounts like 529s and Roth IRAs provide great opportunities for children to start building wealth.
- Balancing saving for the future and enjoying the present is crucial for a fulfilling life.
- Understanding the cost of living and the value of money helps children make informed financial decisions.
- Proactive financial planning can prepare the next generation for the challenges ahead.
More about Andrew Gold:
Chapters:
- 00:00 - Introduction to Wealth Transfer
- 05:15 - Instilling Financial Lessons in Children
- 12:45 - Investment Accounts for Kids
- 20:30 - Balancing Saving and Spending
- 30:00 - Andrew's Personal Journey to Wealth Management
- 40:15 - Planning with Purpose
Disclaimer:
The information provided in this podcast is for educational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.
Thank you for tuning in! Don't forget to sign up for the About That Wallet newsletter at https://aboutthatwallet.com for more insights and updates.
Episode 315
Transcript
>> Anthony Weaver: This episode is sponsored by Prestige Wealth
Speaker:Management.
Speaker:>> Andrew Gold: Um, you know, there's about, I think, 60 to 80
Speaker:trillion dollars that is going to be handed down
Speaker:from parents to kids, from grandparents to
Speaker:parents, over the next 20, 30 years. But what they
Speaker:found is that the younger generation, if they
Speaker:inherited wealth in their 30s, they were the first
Speaker:people to say, I'm going to take a couple years
Speaker:off, take this money and live off it, and go and
Speaker:do these things that I don't want to wait 30
Speaker:years.
Speaker:>> Anthony Weaver: Welcome, everybody, back to another exciting show
Speaker:of the about that Wallet podcast, where we help
Speaker:the sandwich generation build strong financial
Speaker:habits so that they can talk about money, spend
Speaker:money, and enjoy their money with confidence. The
Speaker:beautiful thing about today is that we have
Speaker:somebody who is well versed in finances. He's a,
Speaker:uh, wealth strategist, tax preparer, planner,
Speaker:husband, father, and also an investor. He is on a
Speaker:mission to educate people on their finances and
Speaker:finding new ways to grow and keep more money for
Speaker:themselves. Welcome to the show. Andrew Gold. How
Speaker:you been?
Speaker:>> Andrew Gold: Thank you so much for having me. Yeah, doing well
Speaker:today as a, as a father.
Speaker:>> Anthony Weaver: Um, what is one of the life lessons and finances
Speaker:that you are instilling into your children?
Speaker:>> Andrew Gold: Yeah, I think for me especially, like, my
Speaker:daughters are 2 and 9, and we got one on the way.
Speaker:Um, I think that for especially the youth, we look
Speaker:back at especially just the cost of things, and it
Speaker:can be really an uphill battle or it seems
Speaker:something that's unattainable to really build
Speaker:wealth over the course of a lifetime. We look at
Speaker:how expensive college is right now, just being
Speaker:able to come out of school and be able to look at
Speaker:apartments and how expensive those are. So I think
Speaker:that the, the piece of advice that I've gotten
Speaker:that I try to instill in my children is to start
Speaker:early, start early, and start often, do the things
Speaker:that are extremely manageable for whatever is in
Speaker:your situation, and then just be patient. I think
Speaker:if. If we can all try to instill that into some of
Speaker:the younger youth, life becomes a whole lot
Speaker:easier. You know, whenever you have to start
Speaker:seeing that nest egg build and you can start
Speaker:seeing your money work for you earlier the better.
Speaker:>> Anthony Weaver: Yeah, we always told what time in the market
Speaker:versus timing the market.
Speaker:>> Andrew Gold: Yeah, that's right. That's. That's a financial
Speaker:advisor line. So that's good. Good for you.
Speaker:>> Anthony Weaver: Yeah, because we go through a lot of this stuff,
Speaker:and it's interesting to see how we grew up and our
Speaker:parents had instilled information in us that we
Speaker:still use today as we are getting older because
Speaker:usually, what, age 8 is kind of like where we kind
Speaker:of have our, Our, uh, money alignment. Uh, so for
Speaker:your child to be at 9, have you noticed any trends
Speaker:that she's doing right now with her finances?
Speaker:>> Andrew Gold: Yeah, yeah, we talk about it in our office quite a
Speaker:bit, actually. We call it financial genetics. And,
Speaker:you know, looking at our parents and how they
Speaker:manage money as kids growing up. I mean, more
Speaker:often than not, we usually end up managing money
Speaker:like how we saw money be managed and, you know,
Speaker:for the better or worse and, you know, you know,
Speaker:for those like myself that grew up in a household
Speaker:that didn't, uh, really kind of use themselves as
Speaker:examples of managing money well, you know, it's
Speaker:one of those things you, it's your. It's up to you
Speaker:as an adult to kind of break that curse and
Speaker:restart some things. My daughter sees us very
Speaker:early, um, you know, being frugal, being able to
Speaker:talk about savings, getting her a debit card,
Speaker:talking about spending cash and what you have in
Speaker:your pocket rather than on credit, and, um,
Speaker:starting to see the, the value of what, you know,
Speaker:the time that you exchange for the money and then
Speaker:what you exchanged the money for. Um, I, um, think
Speaker:it's the earlier that you can instill that in your
Speaker:children, the better.
Speaker:>> Anthony Weaver: That's really good because it helps understanding
Speaker:now far as getting into like, the investment.
Speaker:So obviously you invest in your children,
Speaker:obviously through education and also with your,
Speaker:your dollars and cents. Is this a wealth strategy
Speaker:that you and your wife kind of came together about
Speaker:early on? Was this, like, early talks? How did
Speaker:this come about?
Speaker:>> Andrew Gold: Yeah, so obviously she gets, you know, the first,
Speaker:first row view of everything, you know, around
Speaker:wealth and investing and things like that. So
Speaker:that's always kind of a good point. But, you know,
Speaker:I think early on trying, and I, I know that we try
Speaker:not to kind of materialize our children, the, uh,
Speaker:the world is going to do that enough for them. But
Speaker:we wanted her to understand how much things cost.
Speaker:And that can sometimes be a very, know, hard topic
Speaker:to have because they have no perspective. Um, but
Speaker:what, what I think happens is that if we don't
Speaker:talk about how much things cost and the expenses
Speaker:on going to this trip or going to this movie or
Speaker:this dinner or this present, um, by the time that
Speaker:they're starting to work at 15, 16, 17, they've
Speaker:already had the comfort of life for so long that
Speaker:there is a really hard disconnect between, you
Speaker:know, how much I have to exchange my hours for
Speaker:and, you know, what this Costs. This, this little
Speaker:piece of instant gratification may cost a day of
Speaker:me working as a server. Yeah. So with, you know,
Speaker:my daughter being nine, um, I think one of the
Speaker:hardest things as parents to talk about is how
Speaker:much things cost. And so they instantly get the.
Speaker:The world is going to really condition them to,
Speaker:uh, kind of understand the difference between nice
Speaker:things from what they have and kids in their class
Speaker:and, you know, other kids that are in the
Speaker:different activities and whatnot. But
Speaker:understanding exactly what money goes into those
Speaker:things can be some of the things that, as a
Speaker:parent, a lot of the times, in my opinion, we wait
Speaker:too long to really get them exposure to it. So
Speaker:whenever we're going out and we're talking about,
Speaker:oh, we're going on this trip, or, oh, we're going
Speaker:to dinner, or we're buying this present for our
Speaker:friend that we're going to the birthday party this
Speaker:weekend, it's important to talk about expenses
Speaker:because if we wait too long and then they start
Speaker:working and they realized that. I remember for
Speaker:myself, you know, I would work an entire day at,
Speaker:uh, you know, an eight hour, ten hour shift at my
Speaker:restaurant if I made a hundred bucks. Like, that
Speaker:was a great day. And so nowadays, you know, we
Speaker:look at these little video games and you know,
Speaker:last. I haven't played Xbox in probably like eight
Speaker:years, 10 years, but they were $60. I was like, am
Speaker:I going to exchange an entire day of work for one
Speaker:game? So it kind of puts it in perspective. The
Speaker:other thing that we do and is as we're saving for
Speaker:our children, I actually show her her account
Speaker:balances over time and I'll show her what money we
Speaker:put in for her and then what it's worth today to
Speaker:show her the value of compounding and, you know,
Speaker:what it could potentially look like in 5, 10, 15
Speaker:years. Sometimes seeing the fruit of our labor is
Speaker:a lot more difficult than, um, imagining the work.
Speaker:And so like, I think that the earlier we try to
Speaker:put that into perspective, the better.
Speaker:>> Anthony Weaver: Um, now there's used to be a saying when I was
Speaker:growing up and said children should not be an
Speaker:adult's business. And it's usually like, you know,
Speaker:mind your business while you, in adult
Speaker:conversations, go out and play.
Speaker:>> Andrew Gold: Yeah.
Speaker:>> Anthony Weaver: And I'm noticing that there's a shift. Have you
Speaker:noticed that as well?
Speaker:>> Andrew Gold: Yeah, no, absolutely. I think as parents, um, you
Speaker:know, they always say that, you know, strong men
Speaker:raise weakness children and weak men raise strong
Speaker:children. And so I think it kind of goes along
Speaker:with that same kind of perspective piece Is that
Speaker:if we keep our children out of our business early
Speaker:on, they don't really start that financial
Speaker:maturing process until they get on their own.
Speaker:Whether that's 18, 19. They're trying to figure
Speaker:out how much money they can spend for what they
Speaker:want instead of using dad's credit card when
Speaker:they're in college. You know, things like that.
Speaker:The earlier that we can get that exposure down,
Speaker:the better. I mean, I think that that's why
Speaker:parents are shifting, is because they see the
Speaker:uphill battle ahead and, and they see exactly how
Speaker:much maybe if they thought about planning for
Speaker:college what it was 10, 15 years ago compared to
Speaker:what it was today, it's completely different than
Speaker:even parents expected. So being proactive like
Speaker:that is going to be extremely beneficial. And
Speaker:hopefully, you know, fingers crossed it over,
Speaker:prepares this next generation for what's going to
Speaker:come over the next 10 to 20 years.
Speaker:>> Anthony Weaver: Yeah. So, like, what got you into, like, even
Speaker:starting this wealth business in the first place?
Speaker:Because it seems like you seem like you got it all
Speaker:together, like you just kind of woke up, you know,
Speaker:everything's working out.
Speaker:>> Andrew Gold: Yeah, thank you for that, by the way. We'll have
Speaker:to clip that one. But no, you know, it's. It's
Speaker:kind of funny. Uh, it really originated around
Speaker:financial education. Whenever I was in college, I
Speaker:was actually, I was on a full golf scholarship.
Speaker:And the ironic thing enough is that I wanted to
Speaker:major in architecture, and my school didn't have
Speaker:an architecture major, so they put me in, uh, an
Speaker:art program and then just told me to draw
Speaker:buildings instead of people. It was really kind of
Speaker:like, you know, figure it out as you go. Right.
Speaker:But when I got. When I was in college, I actually,
Speaker:the. My roommate at the time was getting an
Speaker:elective surgery, and so I was on my way to the
Speaker:hospital to drop off his phone charger, and I got
Speaker:hit by a car on the way there. And I ended up, you
Speaker:know, two floors below him in the emergency room.
Speaker:And luckily I was, you know, by the grace of God,
Speaker:like, I was. I was okay. But what ended up
Speaker:happening is a few months later, I ended up
Speaker:getting a check for my insurance. And I was like,
Speaker:Like I told you before, you know, my parents
Speaker:weren't really the greatest examples of handling
Speaker:finances. Even though my mom was in banking for 50
Speaker:years, she was very frugal. My dad was the
Speaker:reckless spender kind of thing, fly by night kind
Speaker:of guy, maybe that. Be a boomer. So I was like, I.
Speaker:I want to. I want to do something for. For myself.
Speaker:And My future self is kind of how I view it. And
Speaker:I, I went around and I tried to talk to advisors,
Speaker:and I kept getting the same wall, which was, you
Speaker:don't have enough money to work with me. And that
Speaker:really hit me hard because I'm like, here trying
Speaker:to break my generational curse, right? And I'm
Speaker:continuing to get this weight on my shoulders. And
Speaker:so I went down the route of I'm just going to
Speaker:learn everything from the ground up and, you know,
Speaker:providing a little bit of context. We've got the
Speaker:boiler room, we've got the Wall street movies
Speaker:coming out, all these other things. And so I'm
Speaker:like, this is, this has got to be the way to
Speaker:financial freedom for me. And so I just kind of
Speaker:learned the hard way I couldn't do it right away.
Speaker:So I was still working my job, trying to learn to
Speaker:invest and trade on the side. And, uh, then I
Speaker:finally got the opportunity, you know, to, to be
Speaker:able to change careers. Um, you know, God really
Speaker:put me in a, in a situation where he kind of made
Speaker:the, the decision for me where, you know, I was
Speaker:like, it was going to be a 50% pay cut for me to
Speaker:go and leave the career. Yeah. Um, I had had a one
Speaker:year old at the time, was married. You know, I
Speaker:was, I was in a, I was in one of those situations
Speaker:where, like, you're good at what you do, but it
Speaker:doesn't really like, fulfill you kind of thing.
Speaker:And so we were, we were going to go on a vacation
Speaker:and I was going to talk about it with my wife, try
Speaker:to convince her that this was the right thing to
Speaker:do. And while I was on vacation, somebody had
Speaker:started this rumor in the office that I was going
Speaker:to quit while I was gone. And so I came back and
Speaker:they're like, hey, I heard you got, ah, another
Speaker:opportunity lined up, so we wish you the best of
Speaker:luck. And I was like, all right, well, I haven't
Speaker:really won over the wife yet, but this is a great
Speaker:opportunity. Thanks for, you know, kind of taking
Speaker:care of it for me. So, um, started from the ground
Speaker:up and it was, it was a blessing in disguise. And
Speaker:you know, the thing that I always tell my interns
Speaker:and the younger kids that I work with is, you
Speaker:know, if nobody else believes in you, you know, if
Speaker:you believe in yourself, that's good enough.
Speaker:Right. And just, just be patient. Try to do the
Speaker:right thing every step of the way. And here we are
Speaker:ten years later. So. That's amazing.
Speaker:>> Anthony Weaver: Nice.
Speaker:And you also talk about, like, planning with A
Speaker:purpose. And that is something that seems like
Speaker:it's going along the lines of your life now. It's
Speaker:just like everything has a purpose for what you're
Speaker:doing. Can you expand on that?
Speaker:>> Andrew Gold: Absolutely, yeah. Uh, that's our key phrase in our
Speaker:office. You know, I think that, you know, when it
Speaker:comes to working with professionals, I think we're
Speaker:all taught, you know, things about, like
Speaker:inflation. We're, we're taught things about
Speaker:diversification when it comes to building wealth
Speaker:and don't have too much and cash, don't have too
Speaker:much in one company and like those types of
Speaker:things. But I think that a lot of the times people
Speaker:are just planning to plan, um, without any, like,
Speaker:real direction. What I've learned in my experience
Speaker:in working with the, ah, hundreds of individuals
Speaker:that we help every day is everybody's plan is just
Speaker:a little bit different than another person. And if
Speaker:we're just planning based on how old we are or
Speaker:what our friends said, what we find out is later
Speaker:down the road, whenever our plan is somewhat
Speaker:built, we're not fulfilling ourselves the way that
Speaker:we want to. If you don't plan on, you know,
Speaker:traveling first class to all around the world,
Speaker:like, why do you need to stress yourself out and
Speaker:put away all this money? Because I've had a
Speaker:different perspective now on money than I did even
Speaker:five years ago, is that I feel like there's people
Speaker:that save too much and they're focused on so much
Speaker:gratification 10, 20, 30 years down the road that
Speaker:they're missing out on a lot of those small
Speaker:moments with their kids while they're young. Um,
Speaker:and you know, we have a phrase for that's, that's,
Speaker:that's kind of like, um, negligent gratification,
Speaker:you know, or it's. I like that too much planning
Speaker:for the future, but not enough of joining today.
Speaker:And if, if you're going through life and dealing
Speaker:with all the things that life can throw at us and
Speaker:you're not having a good time, at least along the
Speaker:way, then it makes it that much harder to kind of,
Speaker:you know, postpone all these different things that
Speaker:are coming on your plate.
Speaker:>> Anthony Weaver: And, um, when it comes to that, because a lot of
Speaker:people are hoarding money because when they grow
Speaker:up they didn't have it, so they. More so inside
Speaker:that scarcity mindset, what is one of those
Speaker:negative phrases that kind of grinds your gears?
Speaker:That somebody who has that type of mindset is
Speaker:like, you know, I just really wish you'd get this
Speaker:out of your vocabulary.
Speaker:>> Andrew Gold: Yeah, yeah. No, I, I, I think that, I don't know
Speaker:if I have like a key phrase for it, but, you know,
Speaker:really looking at a lot of people that have been
Speaker:doing what they've been told is like the American
Speaker:dream, which is settling down as early as possible
Speaker:and, you know, buying a house, maxing out your
Speaker:401ks as early as you can. And, uh, what I've seen
Speaker:is that people will overcompensate because of the
Speaker:pain that they've seen from their parents or their
Speaker:household growing up, and they'll overcompensate
Speaker:to those types of things where they're essentially
Speaker:living paycheck to paycheck for 30 years and
Speaker:there's got to have a balance, right? Where now a
Speaker:lot of our clients are retiring and they've been
Speaker:hoarding money in their 401k, and now the IRS gets
Speaker:to decide on how much money that they have to pay
Speaker:tax on every year in the RMD or the required
Speaker:minimum distribution at 73 years old. And where
Speaker:you have that deferred gratification for a long
Speaker:period of time. But maybe because of the line of
Speaker:your work, maybe some of the lifestyle things that
Speaker:you have, health catches up to you, or you've been
Speaker:wanting to go and tour Europe for your entire
Speaker:life, but now all of a sudden, your knees hurt,
Speaker:your back hurt, you know, your kids are all over
Speaker:the place, you want to spend time with your
Speaker:grandkids, and now you can't do the one thing that
Speaker:you've been slaving away for, for the last 30
Speaker:years. I mean, those, those really hit hard
Speaker:sometimes in those kind of conversations, even if
Speaker:you have the money, I mean, that's not necessarily
Speaker:the only way. So we're kind of like that, you
Speaker:know, work hard, play hard mindset in our office.
Speaker:And I think we surprise people sometimes too
Speaker:about, you know, encouraging them to go spend the
Speaker:money and, um, go on that trip with their kids for
Speaker:the graduation or helping out with the wedding or,
Speaker:you know, that pass down to wealth and because
Speaker:that, that's what the kids remember for their
Speaker:entire life.
Speaker:>> Anthony Weaver: But that brings up the toughest question is when
Speaker:do you start cashing in?
Speaker:>> Andrew Gold: Yeah, no, uh, that's a great question. Everybody's
Speaker:situation's a little bit different. I mean, there
Speaker:was a study that came out recently that was
Speaker:talking about, um, you know, there's about, I
Speaker:think, 60 to 80 trillion dollars that is going to
Speaker:be handed down from parents to kids, from
Speaker:grandparents to parents, over the next, you know,
Speaker:20, 30 years. And it was trying to understand
Speaker:exactly how that's going to change the thought
Speaker:process of the younger generation, but also the
Speaker:parents, the boomers that have been hoarding money
Speaker:for a long period of time. And what they found is
Speaker:that the parents are inheriting this money in
Speaker:their peak earnings years. So rather than needing
Speaker:it to spend for debt management or raising kids,
Speaker:they're just essentially letting it sit and grow.
Speaker:And that's creating this giant concentration of
Speaker:wealth, which isn't getting down to the younger
Speaker:people going into the workforce. But what they
Speaker:found is that the younger generation, if they
Speaker:inherited wealth in their 30s, they were the first
Speaker:people to say, I'm going to take a couple of years
Speaker:off, take this money and live off it, and go and
Speaker:do these things that I don't want to wait 30 years
Speaker:for. Especially if I'm going to be in this
Speaker:situation where the IRS is going to force me to
Speaker:take out this money over a 10 year period. Why
Speaker:would I, you know, slave away and put myself in
Speaker:the 35% bracket, let me have that balance, let me
Speaker:maybe spend some more time at home with my young
Speaker:kids, helping them with baseball practice and
Speaker:things like that and all that, different kinds of
Speaker:stuff. What we really like to talk about with
Speaker:especially people that are getting over 50 or over
Speaker:60, is starting to have three phases of retirement
Speaker:where the first one is the day that you realize
Speaker:that, hey, if we continue doing everything that
Speaker:we're doing right now, we're going to be good at
Speaker:some point, whether it be at 62, at 65, at 70,
Speaker:we're there. It's not a question of if anymore.
Speaker:The second one is when you start to really focus
Speaker:on your lifestyle. So it might be reducing hours
Speaker:in the workforce, it might be, you know, spending
Speaker:all of your vacation time for the first time in
Speaker:the last decade, you know, and really focusing on
Speaker:planning those trips a year or so in advance to
Speaker:uh, taking care of that. And then the third one's
Speaker:when you hand over your key card and you really
Speaker:start to live that full 40, 40 hours a week
Speaker:retirement lifestyle. And everybody's plan's a
Speaker:little bit different. Some people like to have
Speaker:those, those moments early on with their kids and,
Speaker:and that forces them to catch up a little bit
Speaker:later. Other people are uh, like, I want to spend
Speaker:time earlier and retire at 60 and be with my kids
Speaker:when they're getting married and they're starting
Speaker:on in their life. But again, tying into planning
Speaker:with purpose, whatever their goals are, we need to
Speaker:be able to listen and be able to figure out the
Speaker:math behind it.
Speaker:>> Anthony Weaver: That is really good to have that strategy in
Speaker:there. Also, uh, it's like, because we don't know.
Speaker:And it was a book that I was reading called the
Speaker:Dial was Zero. And they were talking about having
Speaker:two different lists. So obviously you got your
Speaker:bucket list on things that you can do at any age.
Speaker:But then there's also, I think it's called like an
Speaker:age list. Almost like things that, like you said,
Speaker:you can't go out and enjoy those things because
Speaker:now you got knee surgery or you got hip surgery or
Speaker:what other health issues that you have. Is there
Speaker:something that you looking forward to do or, um,
Speaker:that you haven't done yet that's on your age list?
Speaker:>> Andrew Gold: Yeah. So, I mean, coming from my background, I
Speaker:mean, we, we try to really live. Motto of the work
Speaker:hard, play hard. And you know, I tell some of our
Speaker:younger advisors is, you gotta, you gotta bleed.
Speaker:You gotta bleed the brand and the thought process
Speaker:behind everything that you do. And because life
Speaker:comes at you in seasons, right, there's gonna be
Speaker:periods of time where your, uh, workload or your
Speaker:capacity is gonna have to be more than 40 hours a
Speaker:week. And you're gonna have to have the tenacity
Speaker:to be able to, you know, put in the extra effort.
Speaker:But on the same flip side, when you're working, I
Speaker:used to love to have the opportunity to work more
Speaker:than 40 hours whenever I was growing up, because
Speaker:that meant time and a half. That means I could
Speaker:work 80 hours and then next week I could, I could
Speaker:go ahead and work 30 and not lose a, uh, lose a
Speaker:dollar, you know, out of my paycheck. And so being
Speaker:able to find those types of opportunities in your
Speaker:life and my daughter, I think, is the only one
Speaker:that we've really tried to build out on. We made
Speaker:this promise to her because we're big, you know,
Speaker:car trip people. We made a goal together that we
Speaker:were going to visit every national park. She goes
Speaker:to college.
Speaker:>> Anthony Weaver: That's awesome.
Speaker:>> Andrew Gold: And, uh, I mean, it doesn't have to be luxurious.
Speaker:I mean, there was a time where we spent a week in
Speaker:Seattle or around Washington, going to different
Speaker:places, sleeping and camping in the back of the
Speaker:car because it was so dang cold at night. Uh, so
Speaker:it doesn't have to be luxurious, but it's those
Speaker:little experiences that, you know, you get to
Speaker:reflect back on. And, um, at the very minimum, if
Speaker:it was a bad experience, you could say, I already
Speaker:did it. Let me go focus on something else. But
Speaker:that's about as close as I can get. I've um,
Speaker:coming up with a hit list of things to do. But
Speaker:yeah, hopefully that makes sense.
Speaker:>> Anthony Weaver: Yeah. Um, because that's one of the things that
Speaker:some people do forget is like, yeah, we getting
Speaker:older and tomorrow is like you said, it's never
Speaker:promised. But at least try, you know, put some
Speaker:money aside and really try to live your life the
Speaker:way you want to while you can. Because I think
Speaker:when people who go through or have seen a lot of
Speaker:death in their family, they don't know, the
Speaker:perspective about life usually changes. And
Speaker:because of that, it's like, okay, life is short.
Speaker:Let me go down and sack away money to go ahead on
Speaker:and start worrying about the funeral costs. Cause
Speaker:I've seen so many people complain about funeral
Speaker:costs. Okay, roughly about $10,000 at the time of
Speaker:this recording then, because, you know, they could
Speaker:jack up. Uh, and then it's like, okay, well, what
Speaker:do I want to do with my children? Set them up for
Speaker:school, get them into the different investment
Speaker:accounts. And that's one of the things I did talk
Speaker:about different types of investment accounts for
Speaker:children. Can you talk about that a little bit?
Speaker:Um, what can a parent do? How soon can they
Speaker:actually start investing with their children?
Speaker:>> Andrew Gold: Yeah, no, these, these are great questions. Now
Speaker:we're getting into the nitty gritty. So I love
Speaker:this.
Speaker:So, yeah, a couple different accounts that we can
Speaker:use. Uh, so I'm really hit on, on three. So are
Speaker:the ones that allow parents to save for college.
Speaker:And it's not just parents. Um, a lot of people
Speaker:have conversations with grandparents, aunts,
Speaker:uncles, different pizza pieces of the family, and
Speaker:they're like, hey, instead of buying us that $50
Speaker:toy for their three year old birthday, just write
Speaker:her a check to go towards her college and we'll go
Speaker:ahead and deposit in that 529. Anybody can put it
Speaker:in there. You invest it, it grows, you know, until
Speaker:they use it for college, uh, tax free for
Speaker:education expenses. It passed out, uh, some
Speaker:different legislation recently that allows, um,
Speaker:parents and kids who have unused funds in their
Speaker:529s. I think it's up to $30,000 or $35,000 to go
Speaker:ahead and convert that out to Roth IRAs to
Speaker:continue that compounding, which M, I think has
Speaker:just been fantastic. The next one is going to be a
Speaker:UTMA or ugma, depending on what state you live in.
Speaker:Those are accounts that essentially you're putting
Speaker:in a trust for your kid that you're going to
Speaker:manage and be the steward of that money for them
Speaker:on their behalf as a custodian. Um, until they
Speaker:turn 18, allows all different types of people to
Speaker:deposit money in there. It grows just like a
Speaker:typical brokerage account. A lot of flexibility
Speaker:there for different things. If you have like, club
Speaker:sports or you have, like, private education and
Speaker:elementary school, high school, you know, things
Speaker:like that before college gives you some
Speaker:flexibility. I do really like to point out the
Speaker:fact though, is that if you're putting a lot of
Speaker:money into these accounts, the UTMA or UGMA
Speaker:becomes an asset of the child on their 18th
Speaker:birthday. So if you're looking to go to a
Speaker:prestigious university and not fund it, all that
Speaker:can be a hindrance of people applying for
Speaker:financial aid. Because now this child may have 20,
Speaker:30, $50,000 in their name that can affect their
Speaker:eligibility. Okay, um, the last one is going to be
Speaker:the Roth ira. And this one's a little bit tricky,
Speaker:um, just because one of the IRS stipulations is it
Speaker:has to be earned income, right? So you can't
Speaker:necessarily quantify your toddler having earned
Speaker:income at, you know, 18 months old. A lot of
Speaker:parents are using, you know, uh, family photos,
Speaker:modeling, as you get older chores, you have a
Speaker:small business helping with handwritten Christmas
Speaker:cards, or as they get older, marketing, social
Speaker:media, things like that. But being able to go
Speaker:ahead and utilize that. Um, you know, we use the
Speaker:mentality of 30 by 30 in our office. That's
Speaker:$30,000 by 30 years old. Uh, if you don't add
Speaker:another dollar to it and just compounds at the S&P
Speaker:500 at 10% a year, that's your first million
Speaker:dollars in retirement.
Speaker:>> Anthony Weaver: So, wow, okay.
Speaker:>> Andrew Gold: When we start breaking that backwards, which is,
Speaker:you know, as numbers people, we like to do even at
Speaker:18 years old, if you're putting in, you know, 100
Speaker:bucks a month and you're getting a match from your
Speaker:401k from your employer, that's 30 grand by 30. If
Speaker:we're just letting it invest. If you can start
Speaker:that earlier with a Roth IRA, 100 bucks here, 200
Speaker:bucks here. The number just are outrageous. And so
Speaker:whenever we have kids come through our office in
Speaker:the summer trying to understand these concepts, we
Speaker:use a lot of these types of methods just to be
Speaker:able to show again that end result, to help
Speaker:quantify and defend the effort that goes into it.
Speaker:So I think perspective matters a lot of the time.
Speaker:>> Anthony Weaver: Okay, so we got the investment at least know what
Speaker:type of accounts to get into. Um, um, obviously
Speaker:everybody's situation going to be a little
Speaker:different. So this is for educational purposes
Speaker:only to cover both of us when it comes to, okay,
Speaker:now we open up this account, a lot of people just
Speaker:be like, well then what do I invest in? Usually
Speaker:depending on the brokerage, I think it kind of
Speaker:varies for each one. Cause I always try to say low
Speaker:cost. Yeah, ETFs usually. Yeah. Um, do you have
Speaker:any other like broad suggestions?
Speaker:>> Andrew Gold: Yeah, so I, I kind of like to start in buckets,
Speaker:you know, early on. Uh, the worst thing that you
Speaker:can possibly do is take on too risk too early. So
Speaker:having like the psychology of money conversation
Speaker:with clients is extremely important to understand
Speaker:the difference between saving and investing.
Speaker:Because in saving you can put $5 here and you
Speaker:know, you know it's going to be $5 a year from
Speaker:now. Um, you don't get that necessarily like peace
Speaker:of mind, especially early on. So where I see a lot
Speaker:of people, especially with social media is they'll
Speaker:see a Tesla or an Apple or Robin Hood commercial
Speaker:or like whatever. They're like, oh my gosh, I want
Speaker:to get on this AI scoop and they'll, you know,
Speaker:over fund with, you know, the best expectations
Speaker:out there. And you know, then all of a sudden, you
Speaker:know, three, six months from now when, if it
Speaker:doesn't work out now, they've got less than the
Speaker:money that they put in. And not only did they lose
Speaker:money, but they lost the positive momentum towards
Speaker:investing long term. And that can delay people
Speaker:quite a bit in terms of progress. So I usually
Speaker:start out broad, start with something that do a
Speaker:little bit of the Dave Ramsey, get some cash, you
Speaker:know, build up that little bit of a safety nest
Speaker:egg, thousand dollars, $2,000 or whatever the case
Speaker:may be. But then start broad with a low cost ETF
Speaker:of the S&P 500, you're betting in the top 500
Speaker:companies in the United States. So if Tesla does
Speaker:well, it may lead in correlation to the rest of
Speaker:the 500, but it's not, I can almost guarantee, and
Speaker:again, education purposes only, I can almost
Speaker:guarantee you that you're not going to lose your
Speaker:money, um, by investing in a low cost ETF like Voo
Speaker:or spy or any of those things. 500 of the top
Speaker:companies are not disappearing overnight. So that
Speaker:could give you some, um, peace of mind there. Once
Speaker:you build up and you get a little bit of the taste
Speaker:of the volatility year over year. You know, time
Speaker:is our best advocate there in history. Any given
Speaker:year that you put money in the market, you've got
Speaker:a 50, 50 chance of making money after five years,
Speaker:you know, that goes up to 60 after 10 years it's
Speaker:75 and 20 years, it's about 95%. So the longer
Speaker:that we can have those expectations and build
Speaker:those things out, the better success that we're
Speaker:going to have.
Speaker:>> Anthony Weaver: So as we get into the future of investments, we
Speaker:sign into the future the third segment of the
Speaker:show.
Speaker:What is your thoughts on bitcoin and crypto or
Speaker:even the blockchain man, you're good.
Speaker:>> Andrew Gold: This is a hot take right here. So you know, I
Speaker:guess I'm more of the bear in my office to be
Speaker:honest. I was really late to adopt and I really
Speaker:was waiting for institutions more than anything to
Speaker:be able to start adopting and putting money where
Speaker:their mouth was. I think speculation can be
Speaker:extremely costy costly if um, we don't do our
Speaker:research. And the problem that I had with bitcoin
Speaker:for a long time is that one, there's no
Speaker:tangibility to it. Uh, your, the thought process
Speaker:of the digital gold component takes a long time to
Speaker:kind of play out because as a, a gold investor my
Speaker:last name is Gold. So I get asked this a lot.
Speaker:>> Anthony Weaver: Nice.
Speaker:>> Andrew Gold: If, if you're holding on to physical gold you're
Speaker:already planning for you know, essentially like
Speaker:um, you know, 1984 type world lifestyle. Um, if
Speaker:we're resorting back to dicing up gold and
Speaker:exchanging it for goods, you know that we're
Speaker:already pretty gloom and doom where it started to
Speaker:wake up as you see hundreds of millions and
Speaker:billions of dollars that are going into bitcoin. I
Speaker:heard an interesting earnings call and a thought
Speaker:process from the, the former CEO um, his uh, of uh
Speaker:microstrategy. Michael Saylor. Here we go. He said
Speaker:he's like the view on gold isn't necessarily about
Speaker:anti equities or about anti dollar like that. He's
Speaker:like the problem with the US dollar is that every
Speaker:year we, we print more of it. And so you have one
Speaker:of the largest currencies in the globe that's
Speaker:constantly being devalued on purpose year over
Speaker:year. Bitcoin on the other hand, there's a finite
Speaker:supply. Every three years they do a uh burn which
Speaker:is limiting supply and you're having more and more
Speaker:adoption globally. So then it just comes down to
Speaker:the law of averages. My perspective long term on
Speaker:of it is, is you know everything in moderation.
Speaker:But what we talk to our clients about is if you
Speaker:have 1 to 5% of your portfolio in a cryptocurrency
Speaker:like I'm just going to throw out a name here, this
Speaker:isn't advice um, of BitW, um, is a Fidelity ETF
Speaker:that is a top 10 cryptocurrency coin manages,
Speaker:similar to like an S&P 500 fund, where 80% of the
Speaker:money in that is going into Bitcoin and Ethereum,
Speaker:the two big players that have been in the industry
Speaker:for a long period of time. The other 20% is going
Speaker:to the next eight coins out there that are
Speaker:trending, that are in market cap size. So if you
Speaker:can have 1% of your portfolio and something like
Speaker:that, the US dollar is going to continue to be
Speaker:printed and devalued. If Bitcoin does go on the
Speaker:run that they say it's going to, that 1 to 5%
Speaker:could be 10 to 50% of your portfolio 20 years from
Speaker:now. But if all of the naysayers are correct and
Speaker:all of a sudden overnight, bitcoin gets wiped out
Speaker:with an aha, gotcha moment, you lost 1% of your
Speaker:portfolio. You know, it's not necessarily the end
Speaker:of the world. So everything in moderation.
Speaker:>> Anthony Weaver: I like that because I was even thinking the same
Speaker:thing of like the 1%. Maybe like I was being more
Speaker:modest of like 1 to 3%.
Speaker:>> Andrew Gold: Yeah, yeah, I know, Absolutely.
Speaker:>> Anthony Weaver: Yeah, it's, it's a tough market, especially when
Speaker:it's still new and fresh. What's out there?
Speaker:So in this segment, I like to talk about you as
Speaker:yourself is like, what are the habits that you
Speaker:feel is going to improve your life going forward?
Speaker:>> Andrew Gold: Yeah, that's hard. I think that one of the biggest
Speaker:things of myself that, um, you know, has led to a
Speaker:lot of the success that I've had is, you know, my
Speaker:willingness to be patient. I think in terms of
Speaker:decades rather than I do in years. One of the
Speaker:things that I've, you know, for good and bad. For
Speaker:good and bad, I've always been willing to kind of
Speaker:put myself in the sand and my head in the sand at
Speaker:least and say in 10 years, am I going to think
Speaker:about this moment today? Am I going to think about
Speaker:this decision? And so I think that some people
Speaker:would say that it takes a little bit of pressure
Speaker:off of you because you don't necessarily feel like
Speaker:you're always walking on eggshells that are going
Speaker:to be life defining, you know, kind of decisions.
Speaker:But also I think that as you get older and you
Speaker:mature, I think you realize that in the grander
Speaker:scheme of things, things just tend to kind of work
Speaker:themselves out. And so at the very minimum, bet on
Speaker:yourself and be patient. One of my favorite quotes
Speaker:is this too shall pass. And there's a great Video
Speaker:that has, you know, some of a lot of thought
Speaker:provoking leaders and actors and famous people.
Speaker:Denzel Washington, Tom Hanks, Jamie Foxx was
Speaker:around this table and Tom Hanks brought this up
Speaker:and he said, you know, this too shall pass. He's
Speaker:like, when you feel like you're on top of the
Speaker:world, this too shall pass. Have some humble pie,
Speaker:you know. But when you feel like everything is
Speaker:going wrong, you know, and you can't make a single
Speaker:decision right, you know, this too shall pass. It
Speaker:can only get better from here. Having that kind
Speaker:of, you know, perspective and tenacity allows you
Speaker:to, you know, kind of keep pushing.
Speaker:>> Anthony Weaver: I like that.
Speaker:All right, is there anything that you want to
Speaker:leave the listener today before we get into the
Speaker:final four questions?
Speaker:>> Andrew Gold: I think that when it comes to finances, I think
Speaker:that there's a lot of, you know, advice out there.
Speaker:I would really just say that, you know, we're in a
Speaker:world that, uh, you know, there's so much
Speaker:information you can go and find yourself. Even
Speaker:with my clients, I tell them all the time, I was
Speaker:like, you can find all the things that I'm going
Speaker:to tell you. Um, it's not any secret of this
Speaker:system or the institution or the government or the
Speaker:know and not know kind of things. We've completely
Speaker:gotten out of that situation. But what I will say
Speaker:is, before you make a decision, whether it's
Speaker:working with a professional or putting any really
Speaker:big decisions in place, do your research, ask a
Speaker:lot of different people, look up some different
Speaker:things online. The hardest thing is to try to find
Speaker:something that is custom to your situation rather
Speaker:than just a blanket advice that you see, um, you
Speaker:know, on a Reddit thread or something like that.
Speaker:So. And everything in moderation. Love those two
Speaker:things.
Speaker:>> Anthony Weaver: All right, awesome. All right, ready for the final
Speaker:four?
Speaker:>> Andrew Gold: Yeah, let's do it.
Speaker:>> Anthony Weaver: All right, question one. What does wealth mean to
Speaker:you?
Speaker:>> Andrew Gold: I think wealth means balance. So, you know, here
Speaker:in our office, you know how we typically talk to
Speaker:clients as, you know, the five, the five pillars
Speaker:of financial planning or wealth management we see
Speaker:is financial planning, which is kind of budget,
Speaker:debt, things like that, investments, taxes, estate
Speaker:planning, and risk, which we kind of quantify as
Speaker:like, life and health insurance. Understanding
Speaker:those things that get thrown at you. The
Speaker:wealthiest people in the world have figured out
Speaker:the system to have all five of these pieces work
Speaker:together where, you know, you see headlines every,
Speaker:every day of celebrities that pass, uh, away
Speaker:tragically, and all of a sudden, all of their
Speaker:wealth doesn't have a beneficiary or it Wasn't
Speaker:funded properly in their trust or they didn't have
Speaker:life insurance or a will. Those can happen to any
Speaker:of us. Those are just the biggest examples. So we
Speaker:try to, you know, promote balance in everything
Speaker:that we do. It's not necessarily just a dollar
Speaker:amount.
Speaker:>> Anthony Weaver: That's great. Gotta have balance. I like that.
Speaker:Number two, what is. I mean, what was your worst
Speaker:money mistake?
Speaker:>> Andrew Gold: Worst money mistake, man. Uh, I don't know if that
Speaker:it was a necessarily a money mistake, because it
Speaker:didn't work out PO per se. Um, but, you know, we.
Speaker:We had built a house. Our first house that we
Speaker:moved into and bought was in 2017, you know,
Speaker:during COVID You know, we had a lot of life thrown
Speaker:at us. Um, and we ended up renting out the house.
Speaker:And the reason why we were going to rent it out is
Speaker:because if you remember trying to sell a house
Speaker:during COVID it was not a great, great market. And
Speaker:so we had a lot of stuff thrown on our plate that
Speaker:could have really put us in a bad situation where
Speaker:we would have actually had to come to the table
Speaker:with money just to sell our house and get rid of
Speaker:the obligation. Um, that was during that period of
Speaker:time where I was kind of restarting my career, and
Speaker:Covid came at us and all that stuff. And we made
Speaker:the decision that, you know, this may not be the
Speaker:right move for us right now, but a year, two years
Speaker:down the road may be different. So we ended up
Speaker:renting it out for about 18 months, found some
Speaker:good people that could take over the payments
Speaker:essentially for a year. And even though we were
Speaker:losing money a little bit per month because, you
Speaker:know, of the market at the time, it made sense
Speaker:versus putting it to market after Covid was over
Speaker:and we ended up selling the house and dodging a
Speaker:big bullet there where we didn't have to come with
Speaker:any money to the closing table. But that I feel
Speaker:like when you let emotions drive your decision,
Speaker:sometimes that can put you in hot water. Luckily,
Speaker:we were able to avoid it.
Speaker:>> Anthony Weaver: That's awesome. Um, yeah, emotions and money
Speaker:really don't mix.
Speaker:>> Andrew Gold: That's true. Yeah. And family. Family and money.
Speaker:We. We say that people, uh, are funny when it
Speaker:comes to money. So I've seen a lot of, you know,
Speaker:good, positive stories and a lot of unfortunately,
Speaker:terrible stories of families been being ripped
Speaker:apart over finances. And those are things that we
Speaker:want to avoid as best we can, sir.
Speaker:>> Anthony Weaver: All right, number three, Is there a book that
Speaker:inspired your journey or changed your perspective?
Speaker:>> Andrew Gold: I think the Robert Kiyosaki books, you know, like,
Speaker:um, his, his early. What is it? Uh, richer poor.
Speaker:Is that one of his first? Rich dad. Poor dad. That
Speaker:was one of the ones. It's been, Gosh, probably
Speaker:like 15 years since I read that one that was given
Speaker:to me by a mentor. There's a, uh, you know, a book
Speaker:that came out recently. I think it's called Atomic
Speaker:Habits.
Speaker:>> Anthony Weaver: Yes.
Speaker:>> Andrew Gold: Yeah, that was really great. I actually listened
Speaker:to it on a digital ebook while I was on a, on a,
Speaker:on a plane. And, uh, you know, it's just an
Speaker:amazing book. It's not necessarily about finances,
Speaker:but it's just about behaviors and habits that you
Speaker:have in every aspect of your life, which I think
Speaker:can, can, you know, kind of apply to a bunch of
Speaker:different areas.
Speaker:>> Anthony Weaver: Yeah, solid. Two books, if you listen into this.
Speaker:Definitely need to read those. Uh, number four,
Speaker:what is your favorite dish to make?
Speaker:>> Andrew Gold: You mean like culinary wise? Yeah, man. So I'm
Speaker:Italian, so we, we like to cook. Now I think, you
Speaker:know, being in Texas, um, you know, you can't.
Speaker:Everybody's got their own best brisket you know,
Speaker:so I think that's gotta be one of them. But if I
Speaker:think we were going OG recipe book, man, I think
Speaker:lasagna. Lasagna is like a sneaky one to be really
Speaker:good at. But I think, you know, when we talk about
Speaker:cooking and we talk about cooking as a family, we
Speaker:have a lot of fun in the kitchen. Different,
Speaker:different palates, different things kind of hit
Speaker:you. Different, different moments. But you can
Speaker:have a good lasagna. I mean, I'm there.
Speaker:>> Anthony Weaver: Nice.
Speaker:All right, so we have the very last question of
Speaker:the show, which is where could people find out
Speaker:more about you?
Speaker:>> Andrew Gold: Oh, yeah. Uh, so pretty active on social media. So
Speaker:if you're on Facebook, you can go find my Facebook
Speaker:business page. That's at P wealthmgmt. M. Or you
Speaker:can go to pwealthmgmt. M.com is our website. We
Speaker:have a lot of free information out there. Um, you
Speaker:know, financing calculators, different things like
Speaker:that that can answer a lot of questions about what
Speaker:it's like before ever going on that deep dive with
Speaker:work at anybody. You know, we work with people all
Speaker:over the country, so we do free consultations as
Speaker:well for taxes as well as retirement planning. So
Speaker:happy to spend an hour with anybody, have coffee
Speaker:virtually or in person. I always love it. Awesome.
Speaker:>> Anthony Weaver: Uh, thank you, Andrew, for being, you know, taking
Speaker:time out of your day, especially spending time
Speaker:with the family on the road. Tr really can't wait
Speaker:to see how things fare out with you and all the
Speaker:adventures. So look forward to seeing those posts.
Speaker:So for you, as a listener, I want you to make sure
Speaker:and remember this whole thing was really talking
Speaker:about balance in your life and things that really
Speaker:matter to you, like, how do you see yourself in
Speaker:the future? Are you actually going out and doing
Speaker:the things that really matter to you, or are you
Speaker:doing things that matter to other people? So I
Speaker:want you to take time out, uh, think about that
Speaker:and start taking some action today.
Speaker:All right, everybody, we out.
Speaker:>> Andrew Gold: Peace. Yeah. Love that. Awesome.
