"Navigating Financial Waters: The Power of Diversification"
In this episode, we dive deep into the concept of diversification and why it's crucial for your financial success. You've heard the saying, "Don't put all your eggs in one basket," but what does it really mean in the world of finance? Join us as we explore the three main dimensions of diversification: account types, time, and investments. We'll also reveal key indicators to assess if you're truly diversified and share practical insights to help you achieve a balanced and secure financial future.
In this episode, we'll cover:
- The importance of diversifying account types for tax efficiency.
- Balancing your financial strategy across different time horizons.
- The significance of diversifying investments across asset classes.
- The risks of concentration and chasing high returns.
- Strategies for preserving capital and managing risk.
- How to build a robust investment portfolio for long-term success.
Join us on this financial journey to discover the power of diversification and secure your financial future.
Tune in to gain valuable insights and take steps toward financial security. Don't miss this episode of "Your Investment Partners with Paul and Garrett."
If you have any questions about the topics discussed or want to schedule an introductory call, feel free to reach out via phone or email.
https://ascendinvestment.com/
(801) 476 - 1200
Transcript:
00;00;06;29 - 00;00;20;20
Speaker 1
Hello and welcome to your investment partners with Paul and Garrett, where we talk about all things financial, focusing on helping you plan, keep and grow for a successful future. If you're new to the podcast, welcome. And if you're tuning in again, welcome back and thank you for listening.
00;00;21;19 - 00;00;45;11
Speaker 2
Hello and welcome to your investment partners with Paul and Garrett. Today we are talking diversification. We've all heard that Grandma says, Don't put all your eggs in one basket. But what does that really mean? We highlight the three main areas of diversification, account types, time and investments. Lastly, we share what are the indicators that you are diversified. If you have questions about any of the items discussed today, please reach out either by email or phone.
00;00;45;21 - 00;00;50;05
Speaker 2
My name is Garrett Smith and we look forward to having you with us today. Here we go again.
00;00;50;23 - 00;00;52;08
Speaker 3
Hi again. Good to be here.
00;00;52;17 - 00;01;02;13
Speaker 2
Welcome back. Today, we're talking kind of a little more complicated of a topic. Simple and understanding. Very difficult in practice, right? Yes. Diversification.
00;01;02;16 - 00;01;02;26
Speaker 3
Yeah.
00;01;03;17 - 00;01;05;05
Speaker 2
You know what is grandma always telling you to do?
00;01;05;22 - 00;01;08;05
Speaker 3
Don't put all your eggs in one basket.
00;01;09;13 - 00;01;17;04
Speaker 2
Because if you drop the basket, those wondered, did they actually walk back to the farmhouse with three different baskets?
00;01;17;17 - 00;01;19;10
Speaker 3
Yeah. I don't. I don't know.
00;01;19;11 - 00;01;20;15
Speaker 2
All the eggs in one basket.
00;01;20;15 - 00;01;28;29
Speaker 3
I'm sure they did. But you know, everybody knows when you say that though, right? I mean, it's like a yeah, it's like a it came from somewhere.
00;01;28;29 - 00;01;39;13
Speaker 2
It came from somewhere. One well, I think kind of another phrase that always sticks out is concentration can really significantly build wealth, but diversification helps you keep it.
00;01;39;13 - 00;01;39;25
Speaker 3
Keep it?
00;01;39;26 - 00;01;58;25
Speaker 2
Yeah. You know, if you think about usually it's you know somebody started one business exploit you know the Steve Jobs the world strong you know works in Apple and it just becomes this behemoth and that's how you become wealthy and so concentration can really work for you. Right. But it can also really work against you, you know, if you own one company.
00;01;59;06 - 00;02;26;01
Speaker 2
Most companies go broke over time. Mm hmm. And so your odds of going broke go up significantly. And so diversification is just spreading risk across multiple different areas. And it's not just investments. There's kind of three key areas that we look at for diversification. The first one is just kind of the account types that you're in. It's particularly the tax types that you're paying, you know, tax deferred, tax free, taxable.
00;02;26;26 - 00;02;49;18
Speaker 2
The other one is diversification across time. You know, you need money today as well as need money tomorrow and also diversification and investments. That's kind of the three main buckets we think about diversification. And the idea is to just spread that risk. So you're not taking one big concentrated risk or most the biggest risk I think you're diversifying against is the unknown future, right?
00;02;49;19 - 00;03;12;13
Speaker 2
Nobody knows what tomorrow's going to bring. Yeah, we know anytime somebody claims to know what they know, I would say go back to COVID, you know. Right. A recent memory of just cut an entire globe by surprise. Pretty how people reacted to it. Governments and and different things reacted to the news. And so you diversify just because there's so many things you don't know.
00;03;13;19 - 00;03;31;06
Speaker 3
Yeah, things change constantly. I mean, that's just the just new technologies and, you know, different ideas. And and so you just have to, you know, you really do have to just kind of kind of look at what's available and and just kind of spread things out just a little bit for sure.
00;03;31;16 - 00;03;52;06
Speaker 2
Yeah. And your life changes, too. You know, I, I don't know how many you know, 100% of the clients that we build one plan with. It's outdated the minute they go out the door. Yeah. Because they're like, Oh, you know, this thing just came up. Yeah. Yeah. Except because life happens. Yeah. Kids change. You change. Yeah. You make different decisions and it's a good thing.
00;03;52;06 - 00;04;04;16
Speaker 2
And so, sure, diversification can help you not only sleep at night, but just build some flexibility and robustness in your life because you're not at the whim of just one big bet.
00;04;04;21 - 00;04;10;09
Speaker 3
Yeah, it just makes it easier to adjust things as things change, Which is guaranteed.
00;04;10;13 - 00;04;31;19
Speaker 2
Yeah. Yeah. Which is one, I think one reason why we always start with, like an emergency fund, you know, it's kind of like the buffer in the system gives you that flexibility to make those changes without costing you. Really, time is what it costs. Cash in dollars. But those dollars took time to accumulate. Right. And so when you when you go backwards on the dollar, since it's kind of costing your time.
00;04;32;01 - 00;04;40;08
Speaker 2
Right. Because it needs to be rebuilt either through, you know, compounding interest or through higher savings rate or through reduced spending. That's kind of the only ways to get there.
00;04;40;10 - 00;04;40;22
Speaker 3
Yeah.
00;04;41;16 - 00;05;08;13
Speaker 2
So the first area I kind of want to highlight is just that diversification in account types. Mm hmm. The tax code is always changing. You know, it's at the whim of politicians and who's understanding how it's being enforced. What's the guidance, what's being told. And and as those. And so if you can have the flexibility of different tax accounts, then it gives you that option of where to pull where.
00;05;08;21 - 00;05;28;22
Speaker 2
So kind of the three main buckets are tax deferred accounts. Mm hmm. So you get the tax deduction today so you don't pay the tax on the money, gross tax deferred. And then when you pull it out, you pay the taxes, then so you're paying taxes in the future in lieu of paying them today. The other bucket is the tax free bucket, which is usually Roth is the main name that you hear here.
00;05;29;02 - 00;05;38;09
Speaker 2
And it's you. You pay the taxes today and then it grows tax free. And when you pull it out, you don't have to pay taxes on it, assuming you follow all the right conditions.
00;05;38;10 - 00;05;38;22
Speaker 3
Right.
00;05;38;27 - 00;05;54;28
Speaker 2
And then the last one is kind of the was just a traditional taxable account or what I just called it pay as you go taxes. Yeah. And the capital gains more ordinary income It's just you kind of pay the taxes as you go and as you make money along the way.
00;05;55;07 - 00;06;30;16
Speaker 3
And we tell people that the the best scenario when you hit retirement is to have, you know, a reasonably sized bucket in in all those areas, you know, a have a big, you know, account that's been tax deferred. So when you pull the money out, you've got to pay taxes on it. Have a reasonable sized Roth tax free account that you can just pull on and and and then and just the non-qualified account and if you have all three of those, then you know you really can, you know, kind of to a certain degree manipulate your the amount income taxes that you pay.
00;06;30;29 - 00;06;53;16
Speaker 3
Yeah. So you know you take out the the first amount you take out of that tax deferred account. So you know, maybe you take the first 50 or $60,000 out of the tax deferred account and then once, depending on the tax bracket, once those taxes get into that 20, 25% area, then you pull it from somewhere else, you can still get the same amount of money.
00;06;53;16 - 00;07;00;23
Speaker 3
You just don't have to pay taxes on it because it's coming out of your Roth IRA or out of your pay as you go account, so to speak.
00;07;01;01 - 00;07;11;15
Speaker 2
Yeah, and that so that's great flexibility especially is, you know, likely if you're at least ten years away from retirement at least, you know, likely tax brackets will be different.
00;07;11;21 - 00;07;14;23
Speaker 3
Yeah. Oh, that's a tax brackets will be different. Yeah.
00;07;15;02 - 00;07;31;07
Speaker 2
Yeah. And so and so having that flexibility allows you to navigate those changing conditions because you control where you pull them from. So it's a great thing in retirement, but it's also a great thing as you go. You know, sometimes we have emergencies that eats up our full emergency fund and you have to dip into the savings a little bit.
00;07;31;17 - 00;07;54;15
Speaker 2
Well, if that's all in a Roth or, you know, tax deferred account, there can be penalties if you do the amount before 59 and a half, you know, assuming you don't meet some qualifications. But now on top of the taxes you have to pay, you've got to pay this additional penalty. But if you kind of have that pay as you go tax account, there could be an option to pull out of there and not incur, you know, as much of a setback because you're not just carving off as much to Uncle.
00;07;54;15 - 00;08;03;19
Speaker 3
Sam, right? Yeah. So so diversify the the type of taxation of the accounts is, is best practice for sure.
00;08;03;20 - 00;08;16;10
Speaker 2
Yeah. And it also I think the last point there is it allows you to save in the best area that that's for you know if you're if you're in the high income year you can save on some tax deferred. If you're in a lower income year you can save in that in the tax free bucket.
00;08;16;18 - 00;08;27;27
Speaker 3
But if you're younger, you're going to you know, you're going to want to emphasize that Roth savings, if you're a little older, probably your income's a little higher. You're probably going to hit that tax deferred bucket a little bit harder.
00;08;27;28 - 00;08;35;17
Speaker 2
Yeah. So it kind of allows you to pull those levers not only in the distribution side, but also on the saving side. Mm hmm. Where does this maximize my options for me?
00;08;35;17 - 00;08;35;29
Speaker 3
Right.
00;08;35;29 - 00;08;49;07
Speaker 2
And builds the most flexibility. So that account type. I think it's often overlooked. People just kind of pull the trigger and I've got this account, so I'll use this account. And so it's always worth when you're looking to save or spend it. Where do you put it or where do you take it from?
00;08;49;10 - 00;09;13;16
Speaker 3
From. And you can overuse any of those, you know, if you're not careful. That's why I wanted to bring it up, is if all your money is Roth, you know, you've probably paid too much in taxes over your life. If all your money's in deferred, you know, it's not going to be very efficient coming out. So, you know, it's just it's mix and matching at the right time in the right amounts.
00;09;13;20 - 00;09;16;22
Speaker 3
Yep. Then you end up landing where you want to be now.
00;09;16;24 - 00;09;34;13
Speaker 2
And that kind of leads into the next point that we've kind of touched on is just diversified across time. And this really comes down to liquidity. You know, the biggest idea of this is that emergency fund is you need to have funds available today as well as funds available in the future because you need money all through your life.
00;09;34;17 - 00;09;54;26
Speaker 2
Mm hmm. And sometimes people it's easy to get too strong one way or the other. I'm going to keep all my money so I can spend it today, not save anything for the future. Or I'm going to over save for the future and not have any money for today. And so it's balancing those two. Kind of the diversification across time of when you need the money.
00;09;55;18 - 00;10;13;09
Speaker 3
Yeah, it's interesting that a phone call with a client the other day and, you know, we see this sometimes in marriage relationships, you have one that's a saver and one that suspender. Yeah. You know, and how to, you know, how to navigate getting on the same page. Some people are you know, wired like me. They're kind of in panic mode all the time.
00;10;13;09 - 00;10;36;13
Speaker 3
Is is there enough? Is there enough, Is there enough? And, and other people just, you know, if there's five bucks in their pocket, it's that's enough, you know, and they're looking for something to buy. And so those are obviously the extremes. But you know that that's, you know, there you know, you really need to do the math to really land on a happy balance there also.
00;10;36;24 - 00;10;47;19
Speaker 2
Yeah. You know, I think this comes up, particularly if you're like a farmer or a business owner. It's really easy to tie up a whole bunch of dollars into some assets. So you're wealthy on paper, but you got no cash flow.
00;10;47;21 - 00;10;48;06
Speaker 3
Mm hmm.
00;10;48;25 - 00;11;08;19
Speaker 2
You know, there isn't any cash flow to help you kind of cover those costs today. Yeah. You know, you can be, you know, what's the old saying? Land rich. Cash Poor? Mm hmm. So just keeping that in mind is you're always managing your cash flow through the course of your life of having some for today, as well as preparing for the future.
00;11;08;20 - 00;11;27;19
Speaker 2
Mm hmm. It's always a balancing act, and it changes near daily. Yeah. And so. So, yes, you know, account types diversified across time. And then the last one, which is where most people's mind go when you talk about diversification as well, what do you actually buy? What do you actually invest?
00;11;27;20 - 00;11;28;02
Speaker 3
Right.
00;11;28;27 - 00;11;41;26
Speaker 2
So this is where you get like stocks and bonds and farmland and real estate and, you know, cash or commodities. You know, you turn on the TV, on the finance channels and, you know, there's a gazillion things. It feels like you can for.
00;11;41;26 - 00;11;44;04
Speaker 3
Sure there is a gazillion things.
00;11;46;01 - 00;11;54;21
Speaker 2
And so I guess what's the main idea behind the diversification of of your investments? So this is once it's inside the right account?
00;11;54;25 - 00;11;55;12
Speaker 3
Mm hmm.
00;11;55;12 - 00;11;56;26
Speaker 2
What do you do with it once it's in there?
00;11;57;17 - 00;12;23;17
Speaker 3
Yeah. Diversify nation of of investments is, you know, I think it's, you know, it's it's really important. Sometimes it seems like we get so focused on. I got to maximize my return. I got to maximize my return. And so sometimes we have a tendency to just kind of chase the latest and greatest. And and what performed best over the last, you know, three months or a year, whatever the whatever the time may be.
00;12;24;04 - 00;12;50;17
Speaker 3
And really the effect of diversification is it it it will it's never going to if you're a have a properly diversified portfolio, you're never going to have the highest return portfolio. Right. By definition, you can't because you're diversified. And so when we diversify, we're going to we're going to dilute our our returns on a year to year basis.
00;12;50;29 - 00;12;56;11
Speaker 3
But we're also going to not lay any big fat goose eggs either, if you.
00;12;56;12 - 00;12;56;27
Speaker 2
All right.
00;12;56;27 - 00;13;22;21
Speaker 3
Right. Yeah. So that's why you do it. So it's going to smooth out the returns. So don't expect to have a diversified portfolio that's just hitting home runs all the time because it's just you know, it's just not going to happen. And some people are really wired to maximize performance. And to be honest, we don't really want those clients because they're never satisfied, because they're always chasing something, because.
00;13;22;21 - 00;13;23;22
Speaker 2
There's always something that's.
00;13;23;22 - 00;13;25;11
Speaker 3
Out, there's always something that's better.
00;13;25;13 - 00;13;34;01
Speaker 2
You're picking the one great stock for the year. Yeah, Or the one great. Yeah. Well, you know, even rewind to, you know, like a year, like 20, 22, maybe it's like the one great cash account.
00;13;34;02 - 00;13;37;13
Speaker 3
Yeah. Yeah, the one great cash game over the year. Exactly.
00;13;37;13 - 00;13;51;17
Speaker 2
And so, you know, you've got to be looking across a lot of different areas and and being very concentrated. And that's, you know, if you're if you want to be that high pick performance chaser, you know, that's what you're banking on is that I can pick the great thing there. So you have to.
00;13;51;17 - 00;14;04;21
Speaker 3
Have maximum concentration meaning you know like just all your all your eggs in one little tiny basket, lots of eggs in one tiny basket. And then just hope you make it across the rough grass.
00;14;04;22 - 00;14;16;21
Speaker 2
Yeah. Which there are some people wired that way. Yeah. You know, there they are here. They're usually those hedge funds star guys that you guys are gals that you see on TV is what they're least selling. Whether they do it or not is a different story.
00;14;16;21 - 00;14;25;06
Speaker 3
But but as a fiduciary for our clients, we are you know that's just an anti what you know what were we supposed to do.
00;14;25;10 - 00;14;56;12
Speaker 2
Well and it's also not how we see the world. Right. You know there's getting a capital base getting those first 10,000 $100,000 saved takes forever. Yeah. And so there's, you know, there's some preservation that needs to go along with growth as well. Right. You know, if so, I think it's just how we think and view the world and how we've, you know, been convinced through kind of long term investing ideas of being able to spread those out across different asset classes so that there is preservation through the ups and downs.
00;14;56;19 - 00;15;13;13
Speaker 2
And this comes in it's highlight, it's important through your whole investing career, but it's highlighted when you get in the distribution phase because one of the a massive risk in when you're taking money out of an investment portfolio is taking money out through a prolonged down market.
00;15;13;13 - 00;15;13;26
Speaker 3
Right.
00;15;14;06 - 00;15;20;16
Speaker 2
You know, when you get two or three or four years of significant down markets and you're continuing to take money out of those well.
00;15;20;25 - 00;15;23;24
Speaker 3
Or even relatively flat markets and you're still pulling money.
00;15;23;24 - 00;15;49;13
Speaker 2
Out. Oh, relatively flat, Yeah. You can you just erode the future purchasing power because there's not as many left. So even if you can have, you know, you can choose the index that performed the best over the 20 years, but if it has too much volatility in it and you're taking money out of it, you know, meaning the highs are really high and the lows are really low and you're taking money out of it, you can still run out of dollars, even though it was one of the better performing index from.
00;15;49;13 - 00;16;01;20
Speaker 3
Point to point, from point to point. So, you know, what you're saying is from point to point, it was the best one. But because of the volatility that was there, we still ran out of money because of the volatility.
00;16;01;20 - 00;16;24;22
Speaker 2
Right. Those prolonged down stretches. Yeah. So you you really need to, you know, diversification. One of the main goals is to help clip off those low end, this big massive, prolonged sell off, because that is a big risk. And it's also frustrating as a saver saver when you're getting in those prolonged, you know, yeah, I put a dollar in and it's now worth $0.90 and I put $2 in and now it's worth a dollar.
00;16;25;04 - 00;16;34;08
Speaker 2
And you just it's frustrating. Yes. And it can be really discouraging. And so it's balancing those, balancing not only this saving side, but the spending side as well.
00;16;34;15 - 00;16;55;02
Speaker 3
And, you know, we always talk about the family money so that the other part of that is, you know, it's okay to have some part of your portfolio to be speculative in nature. Yeah. You know, if you're wired that you want to do home run. So that's okay. You know, get your base covered, make sure the math works and that you're going to be able to retire comfortably.
00;16;55;27 - 00;17;12;19
Speaker 3
And then if you want to take some fliers, there's nothing wrong with that. I mean, I do that on occasions like, Oh, that sounds really good. Most time it doesn't really work out for me. But but I'm not you know, I'm not investing what we call the family money, the core money, the money that you're going to rely on for the rest of your life.
00;17;12;19 - 00;17;37;09
Speaker 3
I mean, maybe there's a little bit of gambler in all of us. And the problem is that some people like to do the gambling first and the saving later. They think, well, when I hit it big, I'll, you know, I'll, I'll, I'll, I'll save. And it just never works out because you just never build up enough capital to do that and and hitting a home run is just it's like playing the lottery is just so rare that you can't you just can't count on it.
00;17;37;09 - 00;17;58;20
Speaker 2
Well, there's there's great companies out there, private equity, venture capital that acknowledge that that's what you're trying to do. We're taking 100, 200, 500 small bets and then the two. And, you know, 99% of them are going to 0 to 1% to make it. You know, we expect those to go through the moon. But it's you've got, you know, a few hundred losses.
00;17;59;04 - 00;18;23;11
Speaker 2
Yeah. As well. And so it's it's a different way to look at it. But what you're how you're controlling your risk there is is you're diversifying across a bunch of different ideas in them and then in the hopes that, you know, two or three work out and significantly outperform. And when it works, it works. Yeah. And so there's kind of the main areas to invest in that we typically see or you know, is veterans.
00;18;23;11 - 00;18;41;15
Speaker 2
Obviously real estate, most people's largest real estate holding is their home. And so that you're got if you're still got a mortgage to be, you know, or if it's fully paid off, that can be a good hedge. It kind of against everything else. But potentially, obviously, homes do move around in prices. You know, oh eight or nine, you see that.
00;18;42;15 - 00;19;07;08
Speaker 2
But that's you know, there's real estate holdings, there's farmland. But one thing that you see on on public equity side is, is there's U.S. companies based businesses and there's also international businesses. You know, there's businesses all over the world. And so you probably should own some of both. We're fans of owning both. You know, there's great U.S. companies and there's great companies not based in the U.S..
00;19;07;10 - 00;19;33;14
Speaker 3
And those they work on a kind of a different cycle, too, lately. You know, probably I don't know, the last 15 years, the U.S. markets have been, you know, really strong, really, really strong relative to international companies. But excuse me, I remember in the nineties for a while, man, it was just there was all international, you know, you just had to have that international in your portfolio.
00;19;33;14 - 00;19;49;17
Speaker 3
And and so it's going to change at some point, you know, at some point the valuations on international companies are just far more attractive than the United States. And, you know, I don't know when it's going to turn. Could turn tomorrow could be another, you know, years and years. We just don't know.
00;19;49;17 - 00;20;11;09
Speaker 2
Yeah. And so and not also diversification across countries as well as diversification across size. Yeah. You know if the large mega cap tech has been the driver for a long time now, it's not. But if you look through past market cycles, you know, GE once dominated and they don't dominate anymore. And you know, there's companies come in and out of favor that.
00;20;11;13 - 00;20;12;05
Speaker 3
Yes, they do.
00;20;12;05 - 00;20;39;23
Speaker 2
They can do. And so now you want to own some big you want to own some medium and you want to own some small because you can get different growth at different times for each of those companies through, you know, through each market cycle. So when it comes to stocks as well as bonds, which are just debt instruments, you're lending the company money, but you want to be diversified in both ways in and out of the U.S. different sizes that can help kind of build that a little more robust of a portfolio.
00;20;40;05 - 00;20;49;22
Speaker 2
Hey, commodities are the same thing. There's a lot of commodity markets out there, you know, everything gold and silver to uranium and lithium and, you know, on and on and on.
00;20;50;03 - 00;20;50;23
Speaker 3
Soybeans and.
00;20;50;23 - 00;21;19;23
Speaker 2
Corn, the corn. And, you know, getting some exposure to those different areas can be helpful as well, because those usually can zig when others are zagging. And but often they could be a big drag on your portfolio for a number of years like has been so but it's there's a lot of different options on there and as you can spread about as you as you spread your dollars out through those different areas, you're just taking less concentrated risk that U.S. Large-Cap Tech will continue to be the space to be.
00;21;19;23 - 00;21;30;15
Speaker 2
Not saying it won't be, not saying it will be right. Just it's that is a concentrated bet you're making if you stay, you know, all U.S. at large, which is a very common.
00;21;30;21 - 00;21;38;02
Speaker 3
And the problem is everybody seems to be concentrated there and and it works great until it doesn't. And then when it doesn't, it gets ugly. So.
00;21;38;20 - 00;21;57;19
Speaker 2
Yeah. And then I think that as you diversify across all these different areas, you're just spreading your risk as much as you can, which allows peace of mind generally over time. That's it's a great way to preserve capital in our personal opinions. A great way to sleep at night. Yeah, because when one's working, you know, if something's not working, usually something else.
00;21;57;19 - 00;21;58;18
Speaker 3
Is bright, which.
00;21;58;18 - 00;22;01;18
Speaker 2
Is, which is, which is nice to be able to just.
00;22;01;18 - 00;22;02;27
Speaker 3
Kind of smoothes out the bumps.
00;22;03;02 - 00;22;06;19
Speaker 2
Yeah. So anything else you want to add on any of these buckets?
00;22;07;06 - 00;22;40;22
Speaker 3
No. You know, I think, you know, maybe one last comment is just sometimes people get really concentrated on just where their wealth is. Like, you know, a classic example that you mentioned earlier is like a farmer. You know, farmers, you know, are kind of poor to start with, and then they buy land and they, you know, keep going by land and keep going in and they get to the end of it and and they own a lot of land, but most times they don't spend a lot of time, you know, diversifying, you know, having an IRA and and having some stocks and bonds and things like that.
00;22;40;22 - 00;22;58;14
Speaker 3
And same with a business owner. You know, a business owner plows money. They pay taxes. They keep plow money in their business. They grow their business. They have a successful business. They have a lot of employees. And then they get to, you know, age 65 and sometimes they don't have a lot of cash set aside. And so, you know, you can get concentrated in a lot of different a lot of different ways.
00;22;58;14 - 00;23;29;11
Speaker 3
And we're just fans of I mean, I love business ownership. I think I'm a business owner and and my family is in the farming and, you know, I love land and and farming and things, but it's just good to, you know, make sure just kind of look at your situation and make sure that you're you know, that you're you're you're you're kind of spread out a little bit if you're if you are a business owner or a farmer and just make sure that your your income sources and your wealth accumulation is is somewhat diversified.
00;23;29;16 - 00;23;29;25
Speaker 3
Yeah.
00;23;30;13 - 00;23;41;06
Speaker 2
I think those are all great points. If you want to talk about your specific situation, you know, this is all just education to help kind of build the framework. You want to talk about your specific situation. As always, please reach out.
00;23;41;09 - 00;23;44;17
Speaker 3
Thanks for listening.
00;23;44;17 - 00;24;01;13
Speaker 1
Thank you for tuning in and listening to your investment partners with Paul and Garrett. If you like what you heard, be sure to subscribe to our podcast on iTunes, Spotify or wherever you get your podcasts. Also, visit us as an investment dot com where you can subscribe to our newsletter to keep you up to date. See you in the next episode.
00;24;01;22 - 00;24;38;17
Speaker 1
Kessler Norman and ride LLC. DBA Ascend Investment Partners is a registered investment advisor. Advisory services are only offered to clients or prospective clients where our firm and its representatives are properly licensed or exempt from licensure. No advice may be rendered by US and investment partners unless the client service agreement is in place. The opinions expressed in this podcast are for general informational purposes only and are not intended to provide specific advice, performance data or recommendations that any particular security portfolio of securities, transaction or investment strategy is suitable for any specific person.
00;24;38;27 - 00;25;02;23
Speaker 1
This program is only intended to provide education about the financial industry. All opinions contained in this podcast are subject to change at any time without notice to determine which, if any, investments may be appropriate for you, please consult with your financial advisor prior to investing. Any past performance discussed during this podcast is not guaranteed of future results. As always, please remember that all investing involves risk and possible loss.
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