[Music] Rob Luna welcome back thanks for having me back man it's an honor it's an honor man I when I came on episode 42 your show was already crushing it now it's 10 and something the people that you've had here over the last year just absolutely legendary so it's it's very humbling it's also a little bit nerve-wracking to sit in the seat today considering how far the Show's come and how far it's and congratulations on all the success man man thank you thank you episode 42 yeah damn we're at like 152 now I it's crazy
it was two just just over two years ago wow yeah it does man well quick quick uh intro you've already been on so I'm not going to give you the long introduction but number one ranked wealth strategist in the country and since you've been on the show the author of close your wealth Gap y so how'd the book do book did Pretty good um it wasn't a new New York Times bestseller so I guess I'm a failure by all counts when you uh look it that way but but it's a New York Times so I'm
not going to take it too personally but um that's not why I wrote it though you know I I wrote it to be able to provide information to people who didn't have what I felt was the right information to take control over their finances and from that aspect the people that are reading it are saying It's changing their lives so and from that standpoint I think it's a winner well lot has happened in those two years moved to Franklin you finally got out of California somebody somebody talked some sense you finally but um but Rob
I just you know I want you hear because we're going into a new year we've it's a big year of 2025 uh we got a new Administration coming in old ones yeah got the boot and um so a lot of people are wondering you Know what's the economy going to do everything from interest rates to the stock market to real estate to just starting your own business and um so I want to dive into all of that because I'm super interested and and um and you're the the most knowledgeable person I know on the subject
so figured we'd get you back in here but real quick before we get uh in the weeds with everything we got a patreon account you know that and uh they're are top Supporters I wouldn't be here neither would you be if it wasn't for them and so I get I give them the opportunity to ask each guest a question and this one there were some good questions but this I want to pick a personal one uh because we got a we got a future entrepreneur here nice this is from jws she says I am debt-free
I work for a nonprofit and I have about 500 to a th000 Sur Surplus dollars a month I'd like to open a coffee shop eventually And buy a house where should I start with the house or with the business yeah I mean I I look at the end of the day this is probably one of the most controversial topics out there of whether you should buy a home rent a home and and I think Sean like quite honestly it doesn't just come down to numbers so you know I know if you've got a family I
think being able to put your head down at night knowing that you're going to be able to be in that house for A year two years 5 years 10 years whatever it is your kids can grow up in that home it creates a sense of community with the people in your neighborhood there's some consistency there you don't have to worry about calling the landlord and saying hey my kid wants a dog can I have a dog all those types of things I don't think you could really put a dollar amount on that from my opinion
you know I rented for I went through a divorce I rented for About three years it was really the worst experience in my life considering I owned my first home when I was 19 years of age so I think from that standpoint I don't know about Jules if she has a family I think making that investment in a home is super important when you look at the average net worth of people who own their own home versus renting by the time they're 60 years of age it's 135 5,000 for renters versus over 1.2 million for
homeowners and why We were just talking about that before I got on here it's that for savings right if you're going to pay rent every every month you're not thinking about it you're making that rent payment but you're not building anything up where if you're buil making that payment into your home over 10 20 30 years you're building real Equity because real estate goes up over time you're paying down that mortgage and then when you get to retirement one of the biggest Differences I've seen working with individuals is do you have a mortgage payment versus
no mortgage payment so if you have to get to retirement and still pay rent which is going up every single year versus having that paid off and not having that expense that is also the difference between having a much more comfortable retirement so I would say if you can try to get that home as soon as possible I would do that but I love the idea of being an entrepreneur I think Especially we'll talk about it with this new Administration the wind is finally at your back I think there's going to be a lot of
incentive for people to go out there and build their own business but why not do both I mean a lot of times you can into some of these homes 3 to 5% down get in there for the same price maybe a little bit more than rent and then start that business as well I know that's not I know it was one or the other but I would try to do both but Definitely get that home you know I think we talk a lot about this I'm you know with my team yeah I try to convince
everybody to to buy home yeah and uh you know one of the things that I feel like especially in this area Middle Tennessee it's grow it's growing because it's growing at a at a yeah at a very rapid pace and so I mean would it be would it be but a lot of a lot of the a lot of people feel like the interest rates are still a little too high I don't know if Those are going to fluctuate or not I want to ask you but sure but just from what I've seen in the
seven years that I've been here prices have just they've never leveled off they just keep going up up up up up and so I feel like it would be better to buy right now no matter what the interest rate is because the equity is going up so fast I mean what am I on the money with that or yeah I I think it's it's a great Point um and I'm one like you said I moved from Southern California TI two years ago I looked at the price increase of the previous two years kind of like
when you came out here I was like damn I I really missed the boat and I figured look the money I'm going to save on taxes all these things I may be buying at the top but at the end of the day 2 3 4 Years it'll all even out well I think the house is up another 10 to 15% so had I have not done it I would have missed out and when you look at I think real Estate in general everyone wants to say real estate well up until 2008 real estate is how
it should be was independent markets you know 2008 we saw this crash everything went down in the same time there was never a nationwide housing decline in the history of the United States up until 0809 you had certain markets that went down when some went up so I think it's going to be a little bit area specific you talk about Tennessee you talk about North Carolina You talk about Texas you talk about Florida this is the area where all the growth is coming jobs are being created it doesn't really surprise me that if you look
at the administration if you look at these are red states that support business have zero to low taxes there's incentive for small businesses if you are looking to buy a home in one of those areas which is where I think you should be buying I think it goes up over the next two three 5 10 years and That's going to continue to happen because when you look at areas like California you know I was just out in Newport Beach literally what we bought our home here for which is almost 7,000 you've been to our house
it's it's a nice house beautiful home you can get a 3,000 square foot lot not a house tear down for about the same price so it's absolutely you know when you look at the value getting somewhere like Tennessee it's huge and by the way no state income Taxes so I think the advice that you're giving to people if you're buying in some of those areas that I mentioned I think it's spot on now California uh places like um um uh Seattle places like New York I think those areas are going to continue to come down
you've seen some of those prices come down unless you're getting into the upstate New York and things like that so I wouldn't be buying there but all those areas that I mentioned I Think you're right on in the point maybe we'll talk a little bit about interest rates but 7% interest rates that's kind of historic Norm we're looking at these 10 15 years where we had abnormally low interest rates and people have kind of gravit towards that and say oh I'm going to stay on the sidelines I don't think that's the thing to do 80s
you had 20 23% interest rates and you know the the pros and cons of a booming economy if the economy does do well which I believe It's going to be doing under this incoming Administration I don't think interest rates are going to be coming down anytime soon so I I wouldn't be on the sidelines you don't think they're going to come out no no a lot of people are waiting for that yeah they're going to be waiting a long time I think so I mean the country is it is what it is the country's been
very de Ed it has been for some time now and we are seeing this massive influx of people From California moving into into red States especially the tax-free States but it so are prices in California are they are they dropping because what I've heard from the rumor mill is they're actually staying the same if not going up yeah I mean I think when you look at them relative to other states they're not doing as nearly as well when you look at some of the higher priced homes thing is about California I mean an average home
let's Like at Orange County for example an average home is going to be somewhere around 1.8 to2 million nothing super exceptional um so when you look at it from that standpoint they're kind of hanging in there you're not seeing the increases like you're seeing in North Carolina or Texas or Florida um however you know the thing that I would say California has going for it is there's nowhere else to build in these areas there's no open land like you have in Texas and Tennessee so prices are going to somewhat stabilize however the Catalyst for them
to go up I don't think it's going to happen and when you look at you know some of the big producing areas in California these the last five to six years like Newport Beach area like cunnington beach and these are kind of they actually call these the red Republic these are the areas within Southern California that have different politics and people who couldn't have Necessarily left California to come to Tennessee move from Los Angeles into some of these counties over there those areas are going to continue to I think hold their value but the Catalyst
for for them to go up I don't I don't think it's really going to be there Sean okay and in places like Washington I mean that's those are coming down those are coming down as well for some of the same reasons we're seeing in areas like California now the hope is and we had This last election in California we've seen a much larger movement uh politically than we've ever seen in the last I think it was 20 or 30 years and I think look Sean people are sick and tired of what's been going on the
crime that's been going on there you're going to pay $2 million for home you can't send your kids to the school you can't wear a watch out without worried about getting carjacked somebody I know was followed home you know 3 months ago uh In front of his family was shot in his face he just passed away two three days ago in an area belir like we've heard of the fresh Piner Bel Air This outside of Beverly Hill is one of the nicest areas out there and you know it's really because of the politics and what's
been going on like I've seen since covid I lived in Southern California for 20 years uh it it it became almost like a third world country in some of these places in terms of the crime I'm Absolutely horrible jeez what about what about land me and you go back and forth on land all the time yeah I know you're right but I I just I love land yeah but what what are some of the I mean what do you expect land to do in the upcoming year yeah well look I think the the CH I
like land also the challenge with land is if you're someone who two things um number one I would say the the tough part about land is you don't get an immediate income from land so if you buy Raw land you can't rent it out to somebody like you could apartment or even a single family house or a commercial building there's no tax incentive as you know unfortunately when you go to buy land because the tax incentives come from a depreciating asset which is a building on on top of the land So when you buy land
what you're doing is buying that land for future appreciation which isn't a bad thing but you have to have the money to Be able to wait for that so for example if you're looking to buy we were just talking about Tennessee is booming right now and so all the development is starting to go further south because the areas north are starting to towards Nashville are starting to get more expensive so the builders everybody's starting to move further south that path of progress if you want to get ahead of that because you know developers are going
to be buying that land you know People are going to be going out there investors Vanguard Black Rock are going to be buying KKR I think buying that with the idea if you can wait 7 to 10 years it's probably going to be a good investment but just know during a certain period of time there's not going to be any income coming from that and you don't want to buy any investment whether it's land or stocks or a private business with the idea that I might have to pull money out in a year or two
years Because that be could become a time where the market isn't doing too well and you don't want to have to sell at a loss so if you've got the money you don't need the tax incentives right away and you can wait for that progress to happen I think land's a decent investment what what did you say KKR yeah KKR is a a private Equity company so you're starting to see a lot of these private equity companies buying raw land doing developments you Know and this is one of the problems actually probably the biggest problem
I believe and I don't think enough people talk about it in terms of housing inflation so when you think about the big money the pensions the endowments that are investing billions and billions of dollars in different asset classes stocks and real estate they all have something called an investment policy statement which kind of governs how they can invest their money and up until 2008 2009 while they invested in real estate commercial real estate was Self Storage multifam these big you know skyscrapers class a commercial types of buildings that's where all of their money was going
then in 2008 2009 Blackstone was one of the first ones KKR came in you remember especially areas like Arizona you saw 70 80% declines in home prices you saw Comm unities where the average home was being built and sold for 6 700,000 come down to $150 $200,000 a lot of these homes were being short sold because if you remember at that time one of the things that fueled the housing crisis was yeah not only low interest rates but these liar loans where you could say hey I make a million dollars a year and as long
as you had a decent credit score there was no verification of tax returns there was no verification of your income so people were able to go in and get these houses with with little to no down payment so They had no skin in the game and what was happening during this 2 threee period leading up to 0809 people were just flipping these homes making money and they're like oh why wouldn't I do this well because they didn't realize that home prices can come down when all those home prices came down what did they do they
went to the bank they gave them the keys and said hey I'm walking away and the ultimate wisdom of the administration at that time actually Changed the tax code to give them forgiveness of indebtedness which means if you bought a home for $500,000 the bank wrote it off for $200,000 that 300,000 difference that you would have been liable for if the bank allowed you to walk away from that you would have actually had to pay the taxes on that or they could have came after you well during that time the administration let that go there
was absolutely no recourse for people Everyone turned in the keys prices crashed but there was money out there for the big guys the pension endowments and they said look at these prices if we came in when they did the calculations if we buy these homes and rent them out we can actually get a really good return I know everybody out there has to be just as frustrated as I am when it comes to the BS and the rhetoric that the mainstream media continuously tries to force feed us and I also know how Frustrating it can
be to try to find some type of a reliable news source s it's getting really hard to find the truth and what's going on in the country and in the world and so one thing we've done here at Shan Ryan Show is we are developing our newsletter and the first contributor to the newsletter that we have is a woman former CIA targeter some of you may know her as Sarah Adams call sign super bad she's made two different appearances Here on the Shawn Ryan Show and some of the stuff that she has uncovered and broke
on this show is just absolutely mindblowing and so I've asked her if she would contribute to the newsletter and give us a weekly intelligence brief so it's going to be all things terrorists how terrorists are coming up through the southern border how they're entering the country how they're traveling what these different terrorist organizations Throughout the world are up to and here's the best part the newsletter is actually free we're not going to spam you it's about one newsletter a week maybe two if we release two shows the only other thing that's going to be in
there besides the Intel brief is if we have a new product or something like that but like I said it's a free CIA intelligence brief sign up links in the description or in the comments we'll see You in the newsletter so as you know and I know they're not going to buy one off homes or two off homes they were buying entire communities at a time and what they started doing and now you're seeing multiple publicly traded companies come in 15 16 years later is they're buying thousands and thousands of single family homes turning these
into rental units and now what's happened is the single family home has become what's called an Institutional asset class so now it's just not mom and pop that are bidding for these homes it's Blackstone and KKR and um I can't remember some of the other names some of these big companies that have come in over the last two to three years that are also putting bids so every time you see homes come down a little bit well that kind of triggers their model to go off and they come back in and buy and remember the
difference between you and I is endowments Pension Funds their timeline is Perpetual right because they're always going to be in business they're always going to have people retiring where you you and I are going to we're not going to live past 100 so they can take longer term bets they don't have to make money on this real estate right away so they're in here these are longterm investors and so that's the challenge right is all these people with big Deep Pockets now are competing against everyone else and They've kind of put a floor now they're
not buying to the point in California the $4 million homes which actually wouldn't be a bad thing what they're buying is the $250 to $600,000 homes which is really what Middle America needs to be going after and so what this is created now is what I believe is a detriment and I think is going to be a headwind to the traditional apartment complexes which are called multif family housing because You know I think why a lot of people rented Apartments is like hey if I get an apartment I can stay there two years 3 years
5 years I've got some stability where if I rent somebody's house there's a lot of things I got to worry about 0809 I rented your house you're the landlord you just short sold guess who got kicked out me and my family we've got to go find somewhere else um you might decide hey I want to move back in there after a certain period of time my Brother-in-law just lost a job I'm going to move him back in when your guys' lease is up in six months you got to get out so there's not a lot
of stability but these new buyers are now creating that stability to where you can now have a single family house you could have the backyard put the dog in the backyard they're creating Community projects parks around there so it's really what people who can't as a housing gets less affordable if you can't afford a house I Think most families would rather rent these single family homes they would apartment complexes so that kind of changes and these are the things as an investor you always want to think what is the thesis over the next 5 to
10 years while multif family used to be great do I want to invest as much as in apartments if now people are starting to go into homes is that going to cost you know a a little bit of a hiccup in multif family which I think it will but I think the bigger problem and the bigger issue there is the average American who's bidding for these homes I don't think it's going to be getting a discount anytime soon and I don't think these players are going anywhere because um when you look at occupancy rates of
these communities they're 95 100% they're they're because housing is not affordable they're able to find um renters pretty easy wow you know I got a question that doesn't relate to 2025 but I mean you know the baby boomer generation biggest generation of all time I believe the millennial generation is now they surpassed it it was it was up until then okay my question was I mean you see all these 50 plus retirement communities coming around even here in Middle Tennessee it's massive massive in Florida I mean they got the villages you know which most people
know about about the villages but I mean is that Generation and people aren't having as many kids as they used right either and so and we see it here in Middle Tennessee it's like every time I leave the house there's another development going up is this going to implode is there going to be an overabundance of housing within the next 20 to 30 years yeah well I I think look I mean the thing about the baby boomer generation now is I mean they're they're getting older I mean I think they're I Forget 50s like I'm
I'm 50 my my dad was a baby boomer right so I think they're definitely getting older so I think what you're seeing with that generation and like you said up until now they were the largest generation is they're downsizing right and a lot of the Baby Boomers right they were the children of the greatest Generation the greatest Generation who actually saved and did all these things the Baby Boomers are kind of Uh they're criticized for not being great Savers right they live beyond their means they're the children of the 60s they weren't super responsible and
they might be some of these people who were smart enough to baby buy a home they built equity in their home but that's all they have now they get to retirement they didn't save anything outside of their home so what they're doing is selling the home taking the cash out so that they can live off of it And then they're downsizing or then switching from being an owner into a renter in some of these 55 plus communities however we don't as we said we don't live till ever so forever so the next 10 15 years
as they start dying off that could create a surplus but we're seeing that you know real estate the great thing about real estate it doesn't just go away so for example class a commercial Office Buildings that you would see in Los Angeles in New York That all these companies were renting and then when covid came a couple things well number one people couldn't be in offices but what I always say about Co if it would have been 2 months 3 months I think I think people would have went back to business as usual but when
it's over a year there was a huge mindset shift in the way that things were done so for example previous firm I had we had offices in the best areas in Los Angeles and Scottdale Arizona high-rise Class A buildings that were hundreds of thousands of dollars to build out and then during Co actually no one came into those but then our clients got used to zoom meetings especially in Los Angeles they didn't want to drive 2 hours to come into our office they said you know what I think I'd rather do that Zoom meeting then
drive two hours round trip to get in and see you guys for 45 minutes to an hour uh and then obviously the younger generation kind of demanded This flexible environment so corporations while they're not getting rid of office space they're all downsizing no one's taking as much space as they did before you don't need to do that you have INF Flex environment so you can share a desk between two employees so that's a structural shift that's happened in real estate so what's happened though well I was just reading in for example in Newport Beach California
where there's not a lot of Apartments they have some of these Class A office buildings that occupancy rates have come down significantly so what they're doing now is converting those to mixed use where there's going to be apartment complexes in there and so you're seeing that with a lot of the office space is now in New York because there's just every time I go there and every 3 four months there's more and more vacancy no one's taking that space so they're now converting those to Residential units so I think the same thing could happen there
I personally the case for investing in them like you said the demographic is aging I think they're getting overbuilt I wouldn't be investing in any of those areas I would avoid them but I think eventually they'll flip and they'll do something else with them because they're still um because the millennial generation the younger generation now they're the they're the new home buyers and because They are the largest generation and housing is not affordable the country is trying to find ways to make homes more avoidable and every time something is built or there's a discount on
something everybody's out there looking to pick it up so I think you know it's not going to be a huge problem like commercial real estate that's heavily levered that I'm still very concerned about but it's something I I'd probably steer of if it's an investment case let's move into Stock market yeah what can we expect in 2025 in the stock market yeah that's a million-dollar question well what I didn't expect was 29% in uh 2024 right it was a huge year it was an election year which historically is very volatile people don't know what's going
to be going on and when you look at what has happened since November in the stock market it's it's been and I've been in the market since 1998 I never seen anything like this now people thought And you know maybe Trump gets in and then we called it the Trump rally some things were ring up and usually there's there's a saying Buy on the rumor sell on the news so what I thought was going to happen you see this little bit of a runup into the into the election Trump gets elected you have a couple
of days of euphoria then things kind of sell off and people start worrying about things again well that hasn't happened we're you know R night now at the end of the Year uh we've seen a little bit of a pullback but largely we've just seen rotation where you you might see Tech do great and then the market doesn't crash it just shifts to Industrials and then it just shifts to healthcare so the resiliency of this Market I think based off of what's going to be happening with the new Administration in my view has been shocking
so what you always want to think about is you're asking me about 2025 well 2024 we just did 30% historically over a long period of time the S&P average is 9 1 half to 10% so that's got to get you a little bit worried when you see something r the year before was actually a pretty good year so now you're looking at like 40% in 2 years does that necessarily mean the stock market's going to crash no it doesn't but what I would expect is a lot more volatility so there's a lot of things there's
a lot of heavy Expectations on this new Administration we've got Doge we got all these people coming in we've got Elon Musk we've got Trump and everybody is super euphoric about what's going to happen I'm optimistic but I'm also cautiously optimistic and I don't expect all these things to happen overnight so what I would say is I believe the market will do well I don't think it's going to be straight up like it was before and so I would use something called dollar cost Averaging if you've got some money you want to put in the
market don't dump it all in right away use some of these pullbacks use some of the scare use some of the fear use some of the disappointments which we're bound to get with some of the new Administration like we would with everywhere use those as opportunities to buy but don't go all in after we've had this huge run what sectors do you think are you're going to do the best uh I think technology is Going to continue to lead because technology is what is creating technology is a double-edged sword it's creating the increased productivity meaning
efficiency for businesses at the end of the day when we're buying stocks what we're doing is we're buying the future profits of a company and the more consistent the faster growing the more reliable those profits are the more that stock is going to continue to go up and so when you look at Technology there's no industry that I know well let's take one sector of Technology cyber security well everything's going to the cloud everything's going to AI if you were a large corporation or small corporation like my business is your businesses no matter how bad
the economy is are you going to cut your budget for cyber security are you going to tell your your customers hey you know things AR quite good we're going to we're going to make Your da data a little bit riskier of course not so there's going to be increased invest there artificial intelligence other things that are going to increase productivity to make companies more efficient and more profitable are going to continue to do well the downside of that obviously is there going to be less people needed to be able to create those jobs so technology
I believe is the number one sector out there everything is going to Be AI driven robotics driven that's where the economy in the future is going that's been really that painter's P picture has been painted for the last 5 to six years and that's where you're seeing the money start to to go now you look at other areas where it's almost like when you think about the gold rush back in California you can invest in the gold and the mine itself or you could invest in the picks and shovels the things that they're going to
be out There to be able to work and create and mine that gold so you think about energy for example well all this data like we saw with Bitcoin mining everything it takes a lot of data and power and energy to be able to power this new economy which is why you've seen in the last year to two years utility companies which are traditionally they they say utilities are what widows and orphans buy right because they're stodgy companies they don't grow really fast You know they're what puts the lights on literally they pay good dividends
historically so you start to you look at those as more conservative Investments but we've seen utility companies go up 50 60 70% for precisely the reason I'm talking about the need to be able to power these supercomputers and generators and everything to be able to create this new economy so that's another way that I would look at playing it um what I'd be a little bit more Leery of when we were talking about this is areas like Health Care there's so many questions around that the Health Care system is clearly broken we don't know what
that's going to look at there's not a lot of predictability and the way Wall Street prices stocks is when there's a high degree of uncertainty there needs to be a high discount associated with it so the more certainty the the more people are willing to pay up for it there's a Pretty high degree of certainty that Apple's going to be around in a few years Google's going to be around in a few years but what does United Healthcare look like not mentioning everything that just went on with that company fizer uh what do those companies
look like with the new Administration we see RFK talking about some different things we know the system is broken clearly we don't believe in it we don't trust it we don't think it's efficient That's probably an area I would be avoiding uh I would be heavy in technology I would be heavy in energy um you know I think some of the real estate investment trusts that own the right type of property or another area so another thing is if you don't have money to buy a home or invest in commercial real estate some place sometimes
the cheapest place to buy real estate is actually on Wall Street you can buy something that's called a real estate Investment trust that owns self storage units that owns single family homes that owns raw land that owns commercial units whatever it is you want to buy and you get a lot of the same benefits depreciation you get income that comes from them so some Real Estate Investment Trust had been really beaten up over the last year year and a half why because traditionally as interest rates go up areas that pay you a dividend or income
like real estate Investment trust or as interest rates go up it's not easy to borrow to buy real estate tend to come down so some of those areas have pulled back but I think there's going to be a stabilization I do believe in real estate So Real Estate Investment Trust are another area that I'd be looking at back to the RFK thing I'm glad you brought that up because I wanted to specifically ask that he's got a lot of plans about you know kind of going after Big Pharma going after food companies um you know
but there's got to be a counter to that we can't just get rid of all of that so is there anything in health care or in food or or that we should be looking at one thing that comes to my mind is psychedelics yeah psychedelics just keeps getting more and more popular more and more people are are are hearing about it and figuring out all the all the the positive aspects of going through some psychedelic therapy I know That um I don't know I've heard rumors of of publicly traded companies uh kind of rising up
within that space are you tracking any of that at all or yeah look I mean the the thing to be um a little bit leery of with a lot of these companies some of them most of them don't have earnings yet right so they're investing in R&D which in itself isn't a bad thing right because at you mentioned it's been kind of like a backdoor type of thing psychedelics it hasn't hit Mainstream yet I mean it was the same thing with alcohol back before prohibition right before Budweiser and Kors became these big stocks so um
I do think there's some validity to your thinking I do think that those things could get a light shown on them and when you start looking at some of the independent research out there um you've talked about it on your show a lot with different people there's actually a lot of positives that surround it more so Than what's happing with barbit barbituates and and all these other things um that are out there that are harming people so I think what I would say about those types of Investments the same thing I talk about crypto and
all these other areas that are a lot more speculative that had a a lot of degree of uncertainty with them I don't think you should avoid them because if you're not participating in those those are the areas which we call them 10 Baggers Right those could be the things that do you a 10x return 20x 30X return so you miss out on them because of fear what I would say is so those are the areas to maybe sprinkle a little bit of money in so if it goes down and you lose something it's okay and
I would also say don't try to pick one stock spread it out across 10 to 20 stocks this is like what the big boys do Andre and harwitz the private Equity companies when they're investing in small private Companies they invest over 100 200 companies why because they know 50 60% of them are going to the bed they're going to go to zero but the rest or one or two or three of them could be that home run that more than makes up for it so I would say is start doing the research I think it's
promising not too long ago we saw something similar a few years ago with marijuana stock some of the psychedelics actually had big runs during that period of time I do think The this Administration though could create a narrative that actually supports a thesis for those types of things and one thing I've learned Sean for being in the market for over 26 years you know I'm trained to be a fundamental analyst but what I've realized and I also have a degree in Psychology the psychology of people sometimes is a lot more important than what the actual
fundamental numbers believe and so if somebody believes in Something and enough people believe in something the power for those stocks to Skyrocket well ahead of what the valuation model is going to show is going to happen so I do think those are areas people should be looking at this year does seem like there's a big wave of people a lot more interested in Homeopathy type type care and in natural medicines and so yeah I was just curious and I'm sure there's tons of companies only probably a couple with survive I Mean is that is that
yeah more than likely I mean it's the same thing we saw with the internet I I joke about this all the time and I got into the market professionally in 1998 and so at the time this is when Amazon went public and there was also which is still around just not as big as it used to be was Barnes & Noble right and so remember I mean Amazon started with books now the vision from Bezos was way bigger than books but he knew if I could start with Books that's something I can deliver on I
could over uh under promise over deliver deliver I can create trust and everything that he's doing today maybe not 100% of it but he had a vision of the vast majority of that 25 30 years ago Wall Street didn't quite get that and so we literally used to argue with other analysts about should you buy Amazon or Barnes & Noble people didn't quite get it and that was kind of the thing right and uh Google for example Just came out during that time should you invest in Google or ask geves that was the other search
engine that was people were going so to your point there's some that went by the wayside but there's a lot that that that won and then the other thing that you also could have the benefit in with I think some of these psychedelic companies some of the artificial intelligence companies some of the Computing companies is the big Behemoth out there the microsofts the Metas the Googles uh X like all these companies you know they're trillion dollar companies to continue to double and triple and have 20 and 30% organic growth meaning just more advertising and more
clients like that's not going to be able to happen so as companies get bigger what they tend to do is instead of investing in their own R&D or trying to advertise more or do anything they start growing through acquisition so what you'll see is some of these smaller Companies if you can invest them at the right time they can get bought out two three 4X of what they're trading at so you've got the Catalyst of hey if that company can do it on their own great but I've got a lot of big buyers out there
in these spaces like you know I was reading this morning that you know meta and Microsoft and I believe alphabet are all looking into potentially buying into nuclear power plants right because again they're going to need to make some of These Investments everywhere so these big technology companies don't just think about them as Tech why won't I mean you've already seen Amazon get into Pharmaceuticals and and meta like these companies are giants that could get into the food industry that can get into Healthcare that are trying to get into energy with big deep Pockets that
could be buying some of these smaller companies so as an investor I like investing in those big names but I think Trying to pick some of these smaller names there's a lot of catalyst that could be coming up and by the way all the regulatory burden that you have to get over to be able to do m&a that's probably going to be put aside for the next four years with this incoming administrations and you haven't really seen a lot of m&a based off of historic Norms over the last four years I think that's going to
be coming back which is another catalst for some of these stocks To do better back to Tech I mean there's we're on the seems like we're on the brink of World War III yeah and so with that being said I just interviewed this guy Joe Lonsdale he's he was the the founder of the company called palent here and it seems like there's there's all these I don't want to call them mini but there's like new wave of military industrial complex type companies coming About they're a lot more fic than the old ones uh for I
think it's andural they have the missile instead of you know instead of firing these million dooll missiles to take out a drone these things if they miss they come back and they land we don't lo I mean is is that something to be thinking about investing in companies like those yeah I mean absolutely especially with the with the with the new landscape of the world being on the brink of yeah all these Different complex I mean even if it wasn't these big companies still exist the hurns and everything of the world that are fat happy
they're doing business the old way there's not those those efficiencies so the thing about it is even if we're not on the brink which you know I agree with you things don't obviously look great right now the ability to change things make things better look At things from a different light come from the technology space and get like I was just saying right it's not technology companies just competing with each other they're trying to get into every area now that they see inefficiencies especially with artificial intelligence that they think they can improve on so at
the end of the day even if that's not the case if there is a company that could come in and do it better cheaper or faster that's Something that you want to get in and invest on and so you know what I tell people all the time is and Warren Buffett is you know really well known for saying uh invest in the things that you use right so if you drink Coca-Cola you know he he invested in Coca-Cola he bought McDonald's and you know he bought Apple after got drugg into saying he would never invest
in technology stocks but um I would also say some of the best investments that I ever found came from Things that I saw my daughter and her friends buying before they were talked about on Wall Street or you know listening to your show I mean you're bringing in some experts from what I love about it is all over the world all different Industries different mindsets and what you really need to do to be a great investor is go against the herd think differently don't think like the the masses don't be following the Sheep the Sheep
what they do is they're Constantly buying high and selling low oh technology Ren up let me buy it went down somebody knows something that I don't know time to sell right so they're just constantly following the herd they don't want to do what Gretzky said is Skate to where the puck is going not to where it's been so when you start hearing ideas like that if it makes sense to where hey this could be done better like you're saying and I don't know I'm not a military expert obviously But hey if it's going to cost
a million dollarss to shoot this or 20,000 to shoot this I think this is more than likely where it's going to be going and again you start talking about things like government efficiency and there's a huge amount of waste in the government and what the military is spending and if we really can get the right players on board to say hey why are we spending money over here with a company like this when there's this new upstart that we Can invest in cut the budget by 20 to 30% because it's going to have to be
with Doge and Elon Musk and V ramaswami it can't be more than just pointing out problems and saying here's the problem to your point there has to be something to replace it same thing with Healthcare so if these companies are now starting up a viable alternative to be able to compete with those I think there's going to really be some time and space for some money to flow into those so again Don't bet the farm don't bet money that you can't afford to lose but if you can find some of these things early the great
thing about Google Chat GPT start putting some things in there it'll bring you back some of the companies if you could see some of these that are trading public identify those and put a little bit of money them follow them do some research don't wait for your stock broker to tell you about it don't wait for it to be on the front page of Yahoo Finance cuz that by that time the stocks are going to be much higher so I think it's a great way to do it speaking of Doge I mean a lot of
people are excited about this a lot of people are excited about the government trimming the fat seems like there's a lot of fat to be trimmed now this goes the way everybody kind of hopes it it goes and and there's this massive reform in government spending and and and and and sounds like even laying off a lot of a lot of jobs Yeah what what does that do for our economy well I mean I think the big thing is when we look at this budget deficit right that is getting out of hand I mean and
I think I don't look I think most people that are listening to this they know it's a problem right they understand that if you're individual you can't live off of credit card debt and not have any savings right so there everyone I think is aware enough to know that we can't continue to spend um I Think the biggest risk to that is a few things um you know number one all this spending is tied to the currency tied to the dollar which you know we try to diversify away from the dollar with Bitcoin or with
real estate or other things but at the end of the day we're all pretty beholden to the dollar if the dollar crashes the vast majority of us are going to be in trouble and the problem is the dollar no longer is backed by the gold standard or anything Else the dollar is backed by the belief that the US is always going to make its debt payments on time that it's always going to be able to do that and the rest of the world looks at it as the reserve currency when you start talking about World
War III and everything you got people like Putin out there and say hey we're going to get away from the dollar and so I don't think people understand really how dangerous that could be if your dollar all of a sudden went to zero Now people in third world countries who've seen 200 300% inflation happen overnight understand how detrimental that could be so I think the idea of having a balanced budget right and trying to understand that we we have to make more money than we're spending um which I think is good about this Administration also
because it can't just be to your point we can't just cut everything and save our way to Prosperity we also have to grow and that Was the one thing I would say about the Democrats it was about okay let's spend spend spend but even the things that they talked about cutting I never heard out of their agenda what they're going to actually do to grow businesses I heard $225,000 for first home buyers I heard we give you 20 grand I never heard anything that was going to incentivizes businesses to grow and the truth is the
size of the hole that we've dug ourselves we can't cut our way out of it We need to grow we need to increase GDP so I think look I think everything that they're going to be doing in terms of looking to cut I think that's great there's going to be some things that obviously there's a lot of fat in the system that low hanging fruit could be taken out but but what I'm a little bit more interested in is what are they going to really do to SM SP spark small businesses the vast majority of
this country is made up by small businesses We see a lot of incentives and benefits for the big huge corporations but the small business owner like you myself 90% of the people that I deal with those are the people that are kind of stuck in the middle right they're not making enough money to get the huge benefits they don't they're not poor enough to get all the free handouts they don't get their credit card debt pay paid off they don't get their student loans paid off they get to pay for everybody else's Though like what
are those people going to be getting how are they going to be incentivized to grow so if it's tariffs okay great let's do tariffs but what incentive do I now have to keep my business here hire more people pay people well are there going to be benefits to me so that's and everyone's interested in Doge I'm more interested in what are the growth policies that are going be put in place by this new Administration are there any yet I mean Nothing's definitive right they they haven't got in there there's a lot of talk out there
right now and and I think that's around everything it's going to be around real estate which is obviously a big part of the economy small businesses you know one thing you know talking about real estate for example and which I think was probably one of the examples of the type of smart policy that I really hope this new Administration comes in with was Something called um opportunity zones and so Trump put this in place to where when you looked at some of the underperforming demographic areas where maybe there's uh a high unemployment area you had
high minority area and instead of just saying okay um let's give them more welfare checks or let's get you know put up another a community center what the Trump Administration said was if you develop real estate in these areas if you move businesses and Offices into these areas we're going to give you huge tax incentives to be able to do that now those things have started to wear off because they were put in place at the beginning of this Administration and they pretty much go to zero over the next year to two years this is
the old adage of like let's start investing in teaching people how to fish instead of just giving them fish so I think things like that for Real Estate Investors I Believe things like opportunity zones things like accelerated depreciation to where you're able to buy a new building like you're you're building a new building right you can go out there incentivize somebody to create a business build a bu a building that they're going to house new employees with and instead of having to write that building off over 28 years they could take a huge percentage of
that in year one things like this that are looking at What is the goal we're trying to achieve and how do we create policy to incentivize that the truth is Sean the the things that we need to turn this economy around are you don't need to be a rocket scientist the vast majority of Americans could figure out what they need to do they do it most people have a balanced budget in their own house the problem is is as you mentioned at the beginning this polarizing politics that we have to be able to create a
bill that Solves a problem for unemployment now has Health Care tied to it it has military things tied to it so there's so much fat around it the bill is not actually put in place to solve the true problem so what I'm hoping is there's going to be more than that and like I said at the beginning I'm cautiously optimistic I'm also a realist I know a lot of these things aren't going to happen overnight they're not going to super easy what I would also say about This new Administration is the people that think they're
going to work less and all of a sudden this Rising tide is going to float all boats to everybody to Prosperity are going to be sadly mistaken I think the only thing that's going to happen is there's going to be some probably some tax incentives I think the biggest thing for small businesses that I'm looking forward to is lower regulation and I think that's a big area that people talk about on both Sides is regulation and the problem that regulation causes and you talk about fat in the system that doge is going to be cutting
out and what I'll tell you is someone who's been in financial services for 25 years um and I I'll give you an example I probably shouldn't do it on camera but I will um in financial services I'm all for protecting investors obviously there's a lot of crooks out there in my industry I I've talked about this before to call Yourself a financial adviser you don't even need a high school diploma you don't need to do anything you could say I'm a financial adviser in literally within days advise people on their life savings and if you
are some slick talking person you put on a good suit and you get in front of the average American who we know the reason I wrote this book financial literacy in this country is at all-time low the vast majority of people know nothing about The stock market or real estate or anything that's going on you can convince them to do things that are going to be detrimental to their future right and so all this is going on so if you're a regulatory Authority why not say hey why don't we require some type of minimum requirement
of college or testing or something before someone calls themselves a financial advisor and people forced their life savings over to them uh we looked at the maof Scandal Where he scammed hundreds and hundreds of people I mean thousands I think it was of people where the SEC went into his office time and time again and nothing happened to this guy he was literally stealing money we see that people who aren't registered but are doing crypto scam and all these things that I see on a daily basis that people are getting caught up nothing's being done
to them instead what they're focused on is hey we've taken this 52-page document you have to give your investors to a 56-page document which we know they're not going to read anyway and this eye needs to be dotted twice and this team needs to not to protect investors but to create jobs for regulatory guys to come in and have more jobs and come in and create fines and if you look at companies like people think oh Chase and uh uh Morgan Stanley and these guys are getting fined every single month hundreds of thousands of Dollars
why because they're stealing from people we know Chase isn't stealing from people right we know maril Lynch isn't stealing from people however they might not be dotting that eye cross meanwhile we've got people literally stealing from people that nothing's getting done um we launched a new firm Real Talk capital I left my old wealth M manager firm I sold that a few years ago and I said hey um we only working with the ultra high netw worth we want to be Able to expand and offer our services to more people in order to do that
we need to think differently we need to create different pricing models we need to think outside of the box of this 1% management fee that everybody's charging across the board and so we created a way to say hey let's do some flat fees let's you know create some things that are going to enhance people's lives at an earlier age versing having to wait till they have a million or $2 million Dollars and so the short of it and I won't talk about the different regulatory authorities but Regulators came in looked at things and because we
weren't following this boilerplate template until we actually increased prices on some of our services and I mean significantly they wouldn't leave us alone and so until we increase prices so they could check the box right because people don't want to think it's just like policy it's not like what's Right for the person this doesn't fit the mold that we've had for 25 or 30 years when we increase prices because they forced us to do that then they were okay with it and so this is the that goes on that doesn't protect investors it doesn't protect
small business owners it creates more jobs for regulators and it's not helping the average American get to where they need to go that's just from my own industry but you see it in energy you see it in Health care so why uh you know if you talk about psychedelics why would you treat a new upstart psychedelic company who's trying to really provide value and opportunity and options uh and choice to people the same as you would create trait fizer yet they do it right same thing with a financial services company why would you create the
same regulatory burden on a new upstart financial services company that you do for Chase that we know it's too big to fail that We know the government's going to come in and support them anyway if anything's going wrong but that's the way things are being done nobody's talking about this stuff Sean and so when you hear this incoming Administration saying we're taking down regulatory burdens you're going to hear the less scream about oh it's going to be 2008 again well you know let's remember 2008 and a lot of that that happened was because Barney Frank
and saying Everybody should be an homeowner and all these liar loans and a lot of stuff that were created to get into everybody being a homeowner regardless of whether you have a job let's remember that some of the liability belongs to there and just because of the fact that we're talking about smart regulation and reducing regulatory barriers doesn't necessarily mean it's going to be the wild west and what I believe it's going to be able to do is allow small businesses to actually Be able to compete to create new products alternative services and not have
to spend 100% of their time on compliance and going through Audits and actually working on creating solutions for people and that regulatory burden Sean is probably the single biggest tax that a lot of small businesses have because they're constantly having to pay for more compliance officers and more attorneys and I look at just our small Financial Services firm the amount of Money that we're spending on legal fees to meet things that aren't even helping our clients that's a huge tax so if you can minimize that burden that's money that I could actually employ more people
for buy more technology for and so I think this new Administration and so I'm just trying to paint the picture from the average person who doesn't understand why regulation is such a bad thing regulation in itself is not a bad thing but regulation for the self sake Of Regulation is just a lot of fat that doesn't hurt help anybody except regul regulation interesting I never would have thought of that let's move into crypto yeah Bitcoin just hit what was it 100 6,000 yeah where's that going yeah I I wish I knew exactly where it was
going one thing I will say about Bitcoin cryptocurrency alternative currencies in general is it it goes back to this faith in the dollar I think a lot Of people are losing faith in the dollar because a lot lot of people have lost faith in politicians and unfortunately in this country um there there's two things we have fiscal policy and monetary policy that kind of rule our economy now monetary policy is what we see the FED doing right and monetary policy there's they only have one tool so Jerome Powell and all these guys they sit around
they look at all the problems they have one tool for a dual mandate Dual mandate meaning they have to do two things they have to keep a lid on inflation their numbers about 2 to 3% we know we're like at 7 8% before that's not the real numbers if you look at housing and all those things is like 12 133% and they need to maintain full unemployment so they want have unemployment somewhere around 3 and half 4% so that's two pretty big tasks right control inflation and make sure people have jobs oh and you got
one tool it's Monetary policy meaning interest rates that's all you can do to control this so no matter what they see that's all they can do and so what the FED tries to do is control the economy by either lowering interest rates or raising interest rates so when they raise interest rates they're trying to slow the economy down why well makes sense if you're going to go and buy a house well that house payment today is going to cost you a lot more a lot of people have Credit card debt so your credit card interest
payments this month or this year might be 500 bucks where three years ago they're only $200 so when interest rates go up it styes the economy there's more money that has to go to Debt Service that can go out to buy goods and services and that's why the economy slows down that's why inflation comes down the opposite is when they see things and right now they're in a period of lowering interest Rates which is relatively controversial because when you look at the economy it's actually doing pretty well and so people are wondering like why are
they lowering in interest rates so when they lower interest rates the idea is well what we're going to do is give more stimulus into the economy so the opposite if home prices are lower now right because of the fact that their payment is lower more money to the economy less money is going to pay off Your student loan or assuming you still have student loans or your credit card debt so more money goes into the economy so that's the only tool the problem is though that the FED can only control the overnight lending rate which
is short-term interest rates so we've seen the FED cut rates twice now but actually long-term rates have gone up and so like the 10-year treasury actually controls the 30-year mortgage so mortgage rates were in the sixes now they're back above 7% so people are kind of scratching their head because at the end of the day no matter what they do it's the Free World market economy that's going to dictate what they believe in people do not believe that they're going to cut interest rates much more they don't believe that the econom is going to go
to a point where it dictates rates going lower and so that's not really working and so I'm kind of I'm getting to your question about Bitcoin but that so then That relies on the bigger lever to move the economy and that's fiscal policy fiscal policy is things like tax cuts it's things like changing regulation it's everything else except for monetary policy which I would argue is the more important thing right I want I don't want to pay I don't want to build a business and have to pay 40 or 50% when I sell it and
taxes to the government who's not officient with it I don't want to pay the highest tax rates in the Country uh I don't want to have ridiculous regulation that's not helping anybody and it's causing us to hire 22 attorneys every single year those are the things that we're hoping that have not we've we had no fiscal policy for the last five six years because everybody's locked up nothing's changing so we're lying on the FED to move everything so everyone's blaming the FED for everything and meanwhile it's really Congress that can't decide on anything That's going
to actually help the economy and so what I'm saying here is all these things the ability for Congress to act on policy for us to have Smart um uh monetary policy that dictates what's going to happen with the dollar and unless people feel like there's some security and stability around the US economy there's not going to be security and stability around the US dollar and so what people start saying then is well what can we believe In what currency now it's not going to be like the US dollar loses Reserve currency overnight it's not going
to happen however what people are starting to now look at is Alternatives and how do I hedge against that how do I make sure I'm not Argentina or Russia where overnight my do my dollar is not worth anything so they're looking at things like Bitcoin as a hedge to that and you know Bitcoin obviously kind of you know it's it's an unscrewable Ledger there's A finite amount of Supply uh in terms of using it as a currency it's not going to happen it's not efficient enough to happen but people are using it as a store
of value um arguably when things really really go bad I don't know that it's going to be the best store of value I think I'd probably have rather have land and maybe even gold in that sense but they're using it as a store of value and also a hedge now again remember I told you narrative is super important Though so why I talked about you know investing in uh psychedelics makes more sense now than if the Harris administration were to get into there all these things are based off of narrative so stocks need a catalyst
and they need a story to support it so I think this new incoming Administration really kind of lit a fire under crypto why because you have Doge why everyone get exuded Doge it was Dogecoin that Elon Musk took from a Fraction to a penny to 40 cents he's obviously Pro crypto um you've seen Trump out at some of the uh crypto conventions out there so this Administration seems pretty crypto-friendly what does that mean I don't know however there's a narrative there for people to speculate and bid on it more and you're starting to see other
countries adopt it maybe does it become you know if they start talking about hey we need to have a certain amount of Crypto to kind of secure the dollar I mean you're going to see or Bitcoin you're going to see things absolutely rally so it goes back to we don't know enough about it yet but should you have a small amount of money invested in these things more than likely you should just don't go all in on it because if it doesn't happen you're going to be in a lot of trouble but I think there's
enough now with this new if if this Administration didn't get in I I think I Would say don't touch it but I think there's enough out there to where we could hear something kind of shocking that gets it the Skyrocket so I think having a little bit of an allocation to it is pretty good what about precious metals yeah I mean gold is it's close to $3,000 an ounce now correct y y yeah it really jumped yeah so go it's all the same reason also because of fear of the dollar it's exactly what it is
so whenever look when you look at there's a Few what I would say old school Hedges against the dollar Gold's probably one of the oldest right we used to be on the gold standard which means we had to have a certain amount of gold and supply for every dollar then we got off the gold standard because we wanted to be able to create the deficits that we had without any accountability and that's probably one of the worst things that could have happened to the US dollar um but gold is one of those things land is
one of those Things oil you know what they say is if you drop it on your foot and it hurts that's probably one of the things that you want to have to hedge against the dollar now Bitcoin obviously isn't that but I guess they're saying that that's kind of the new Cyber uh hedge against that but I think a little bit of a gold is fine but you know I mean let me tell you my honest opinion about all this stuff right um a lot of people will say stocks are also a good hedge against
Inflation why um well we just went through a good period of inflation stocks did really well why well look at let's look at Proctor and Gamble who makes a lot of food and hug diapers and all this stuff things that we all need to buy so what did they do inflation came they increased prices which hey you still need to eat you still need to put diapers on your kid they did something called shrinkflation which they just gave you less cereal in the box but you Paid the same price so companies will not just sit
back and not be profitable they will pass along ways to be profitable to the companies so stocks do tend to be a good hedge against inflation um but here's the way I look at it over the long run like what are we really trying so you buy stocks what are you trying to hedge against a hedge in general is against catastrophe right so when you think about Hedges like the dollar crashing and World War III you Know I I would argue if some of the worst case scenarios that you've talk about on your show we've
talked about for it actually come to play You're going to have a lot bigger worries about than your stock portfolio so we've talked about this before like I'm kind of all in on stocks and small businesses and I've got a little bit of crypto and but I tend to invest in businesses and American entrepreneurs because I think American entrepreneurs are always going To find a way to make money right and it's proven itself even the S&P 500 and we're always talking it down it can last time I was on your show almost two years ago
if you're not going to do anything by the S&P 500 it's up 40 something per versus trying to be all over the place work by the S&P 500 but what I would say is if you're really worried about the proverbial hitting the fan I like things like Farmland I like things like ammunition I like things like weapons I Like things where at the end of the day if things really get that bad there's been some shows on Netflix like who wants your block of gold like people want medicine they want food they want running water
they want ammunition and I don't want to scare anybody or anything like that but in terms of the hedges that I advise people against the hedges that I have it's more leaning towards that like I don't want Bitcoin if things really get bad I don't want your Bitcoin I don't really want your gold chips I need your food I need your energy I need land I need ammunition I need those things and it might be kind of a morbid or scary way to think about it but at the end of the day it's either stocks
and companies in America is always going to find a way it always has to continue to do better and do well and prosper and real estate I love or things are going to go really bad and the alternative probably doesn't look like you're going To be protected by Bitcoin that's just my view makes sense makes sense so let's let's start to wrap it up here but snapshot what what should the lot of new a lot of people are making New Year's resolutions right now or have by the time this comes out you know getting out
of debt yeah investing in the 401K putting money into IRAs what are buying a home what what are your top couple things that that the new investors should be doing with their money this Year yeah look I I I think there's a few things and I'll tell you my New Year's resolutions for the last two years and it'll probably be for the next 10 years are um this isn't really an investment question but my Healthcare uh like I said I think we're all being lied to about our Healthcare and it's getting better and greater control
over that and that comes from knowledge people like your show and other people out there they're trying to educate people on that Because I think we're all being lied to and I think at the end of the day the system is not set up for people to be healthy it's it's set up to create profits for drug companies and hospitals and these other things and I think um when you think about that in general it's really the same thing with your money unfortunately the financial service industry was not set up to give people the knowledge
and information to become wealthy the financial service Industry was set up to gather the money from wealthy people put it in their own coffers and then earn a percentage of that by doing nothing that's just the truth and I've been in this industry my whole life um I've tried to change that so the the way people invest the knowledge that they have the advice that they' be giving by big institutions I think it's all wrong I think it's all sur- serving it's not helping them it's helping these financial institutions Stay in place and the problem
is Sean they're still managing money they're still giving advice based off of data and information that came from the 1960s and 1970s that haven't changed and they've created financial institutions around this that protect themselves if they're ever suit or anything so there's no incentive for them to change so the same thing I would say with Healthcare is start educating on yourself you're educating yourself on how do people Really get wealthy what are people who have really made money doing are they following the 9o5 work there and put 5% in your 401k and get there or
are they thinking outside the box and I'll tell you I've had the opportunity we've talked about my story on the previous show I grew up super poor my family didn't have uh stocks or own own real estate or anything like that I was the first go to college first to own stocks first to buy a home and so I'm the Average American who's first generation trying to get it and create it themselves and unfortunately the information if I would have taken of just get out of school and work for the rest of your life I
never would have had the same opportunities that I'm having I have right now I think the best thing and I I was talking about this with one of your staff members for young people at the beginning of this is what people need to do going into this new year Especially younger people where it's not too late and even if you're in your 40s early 50s there's people that start businesses is figure out what is a problem in society that I believe I could I could solve better than anybody else how do I create a skill
set whether that's going to medical school when you're young or hey I'm an HVAC guy let me think of how do I create my own HVAC company there's so many private Equity companies out there that are buying These companies how do I create something of value where I can secure my own income my own income control my own future I would encourage everybody to start thinking that way because when you think about artificial intelligence and Robotics all these things are job Killers right and I could tell you if somebody who's worked with hundreds and hundreds
of very successful people the more money you start to make in an organization the more vulnerable you Become when there's cutbacks so if artificial intelligence takes jobs and they shrink guess where they start they start at the top and if you're someone who's 40 years ear old and you're earning 300 $400,000 a year and you get laid off you're at a point where you probably didn't make enough money over the previous 10 years to where you're financially set you're probably at the point of ultimate vulnerability where now you get laid off where do you go
Replace that income you didn't start working on creating your own job somebody else isn't going to hire you for3 or $400,000 what you do is you have to take a step back so what I would encourage everyone in this new year is start focusing on how do I become an entrepreneur 90 over 90% of businesses in in the America are small businesses how do I create my own income or how do I get in with a company where I might not be an entrepreneur but they're going To give me an opportunity to be part earn
some equity in that business because again I've earned all my money yeah through investing but the vast majority of from my businesses I bought sold businesses built businesses and I've earned it from there but I've also worked with wealthy people since 1998 professional athletes entrepreneurs corporate level Executives all of them all of them made money from a single skill set that they Were able to monetize over a period of time I never worked with anyone super wealthy that N9 to5 their way in 401K it they took significant risk they did it when they were younger
they started their own businesses they took extreme leverage I think I talked about this before one of my largest clients I ever had that invested over $120 million with me the year before he had like $2 or $300,000 in his 401k no other asset had a little bit of debt all the value was Locked up in his business until he was 39 years of age he went all in on this he took an extreme amount of risk but he sold that business for almost $200 million wow right so I would say is start talking to
people who understand the blueprint of how to get there and I don't think unfortunately it's in the traditional colleges anymore but there's a lot of entrepreneurs out there there's YouTube there's your show there's other shows where there's the information out There Sean but the one thing I'll say is like don't procrastinate right don't wait till it's too late don't not believe in yourself don't think that everybody else that's starting business is so much smarter than me I you know I talked about the time one of my big other biggest clients was pest control guy he
just bought he he started his own pest control company started buying other routes built it up to where he then wind up selling that to a publicly Traded press control company it could be literally anything out there but you have to start thinking just like I said about owning a home don't rent don't rent a job how do I own my own income I think that's the number one thing that you want to do and then when you get to that point where you have the extra cash flow coming from that business that's when you
start to do the things like invest in stocks invest in real estate but until then focus on that business or Focus on becoming a doctor or something that's going to guarantee you a decent amount of income where you can put away 20 or 30,000 or $40,000 a year every way or or um you know whatever it is I I would say this New Year's resolution how do you get greater control of your income great advice well thank you for uh thank you for coming out and uh thanks for all the insight into the oncoming economy
this year and um see you soon appreciate it Sean thank you all right yeah [Music] thanks no matter where you're watching sha Ryan Show from if you get anything out of this please like comment subscribe and most importantly share this everywhere you possibly can and if you're feeling extra generous please leave us review on Apple and Spotify podcasts
