Am I on Track for Retirement?
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Welcome to ask the compound great show today, great set of questions and we have a question for us. Ask the compound show a gmail about com today this week. Should you have different rules, your broker account, then your retirement counts. Don't can I help you do um yeah I actually .

I have some questions about this.

Okay, what is the best strategy for asset location, not just asset allocation? Um how do you track your retirement progress in middle age? What is Better for paying for homer innovations, R S use or a he lock and does jewelry account as an asset class for an investment? Good question.

Our show today is sponsored by rock of money. My favorite s personal finance set, rocket money is a personal finance up IT finds lower ers and cancer journal of descriptions monitors your spending and helps lower your ability. You can grow your savings.

I think the end of the year is a great time to use a tool like rock money to check your budget during your spending for the new year. right? What did I actually spend my money on?

I think a lot of people don't actually know. I know we all like to think we know where our money e's going. I think that's a problem for our people. They don't know where there's moneys going.

They don't track IT rocket money has over five million users and saved the total of five hundred million dollars in cancer subscriptions, saving members of the seven hundred forty thousand years and using all the apps features. It's great, really easy. It's on your phone or you can pop on your desk top stop wasted money in the things you don't use cancer your unless scription are going to rack money. That com flash atc, that's rc money. Com flash A T C.

I like using rocket money to to catch streamers when they start boosting the Price, like after year agers by the attack on two hours, three dollars.

Ah, it's great. I show you, go to wait a minute. I didn't use this one and while I don't need you tell me, I use all the streamers but it's nice to have more than one places.

No, it's what's what right? Good questions today. Fan favorite ill sweets and show, let's go.

At first we have a question from corner. Do you have any rules you set for yourselves in a broker account allocation percentages, selling crisis, buying crisis, when to take profit or when to let your are winners run at set IT? Or is this, as you say, a way to gambol outside of your four one K I R A.

I like this question a lot because I know a lot of investors will treat different accounts differently. I am an advocate for the fun account. If you need to scats addition, not everyone has to. There's a lot of boggle heads out there who think I don't need a fun account. I'm just said IT and forget IT index funds, I rebaLance automatically.

How how do they have? How do boke heads have fun? I think no, nothing against them. The no shade like to make fun swims in .

his some people just want to count that some people don't need. And I think it's something that you can also graduate from because IT started out for me as more of the gaming, gambling speculative. Some people look at IT is like i'm going go away the other way, right? I have all these index ones over here with ver etf.

IT said forget IT target date funds, whatever. So i'm going to go not to over here. I'm going to trade penny stocks. I'm going to trade crypto. I'm going to market time.

I'm gonna to cash, sometimes going all this stuff triple levered whatever dunk in you know about those um and that's how to started out with me for my burker account I I was buying cyp to I was trading stacks and I still use IT as something of A N account. But as i've graduated in the broke account is increase in value, some from investment gains are mostly from saving. I guess I just I don't really have as much.

I don't need to stress that is as much. And I think part of the reason is because the money is getting bigger. And I decided, like, oh, I graduated from being a teenager, whatever, to adult.

I need to be more adult. So slowly but surely, i've wind off some of the stacks. I've sold some losses over the years. I've sold some winners over the years. And i've slowly but surely said in the only set IT and forget that ahead of my broker account when I started was I just had automatic contributions going into the account. And then once the cash was there, then I would do something with IT.

And the problem with that as a as a strategy is IT gets really tempting to just time the market and cash becomes like a what if I just build t up the cash for while, then i'll really wait. Now i'll pounce on that fat pitch. And so i've slowly but surely turned on their rules for automatic contributions.

And that means I sold some index funds and I sold some other investments in there. I saw some stacks. I'm sorry, and I just started to do piling in the etf automatically.

So once a week on every monday, I buys etf and it's pretty oring. It's a lot more boring than I was zoom before, but it's just i've decided, like slowly, virtually graduate now that doesn't know. I want to tell pick stock there I will.

I still have some stock picks and there are still buy some. I somehow I always follow josh's bad pigs. I never pick good pics, you know, we can all be right but somehow I only pick josh's bad stock picks um and I miss out in as good ones. But so i've slowly but surely changed the trajectory of my brother account. I think that will continue as IT gets to be a bigger piece of portfolio.

If you don't pick any individual stocks, you your C, F, right, you can hold A, C, F, A and not pick stocks.

That's why there's less C, F, S now because it's it's just easier to set and forget IT. And by the index one and be done of IT. And for me is just I didn't want that like the decisions hang over and that's the whole point of automating in the first place.

I know. So for me, it's just i've graduated from scratching that each in this account. I don't need IT as much anymore, so i'll do IT occasionally, but it's just a smaller and smaller percentage.

And so that sit for me some people still. So I don't have any cell. I think figuring out when to sell an individual stock is one of the hardest questions to answer as an investor.

I don't think anyone can do that well because there's so many stocks people sold over the years and you never go group taking a profit and company just keeps going up. So I don't think is any really good rules there. I think you just have to have some sort of boundaries on your actions if you want to actually be successful.

Yeah, the non finance professional, I just say my thing that i've warned the hard way over the years as I wake turning after being up big, i've seen too many stocks go down a lot after being up in them. So now I just know that that I need to sell some whenever something you know, doubles or goes up, goes up because, yes, I just IT bothers me a while when i'm up big and then end up selling out a big loss in a couple of years or something. So for house, not to brag, but i've been a shareholder for a long time in rocket labs and it's a big time right now. So I ve you been trimming some um not because I don't even accompanying anything, but just because yeah you know if you've got a you got to take some games.

see diversification. You you have that baLanced .

out early right right? Yeah exactly. You'd also be proud me. I am buying more etf now. I'm diverse fighting. And yeah the problem that I have, the I don't if you have any recommendations on this place, when I see something going up, it's harder in order for me to buy more than in a dollar. When the markets going down, i'm happy to buy more every week.

But when the markets going up, I just feel like and I just paid paid less, less two weeks here for the same thing. Why would I pay more? And now I trouble with that.

unfortunately, that the trend amena is your friend and you should be dubin animals. But I agree, it's it's much harder to do is easier to be like the value investor. But I think the other great part about this kind of phonic portfolios is eventually you learn like, oh, man, if I would have just had this sitting in all time, look at how much Better my results would have been.

Now some people get the results and go look at i'm doing Better. I'm going to keep doing this. I'm a good active trader, not many people with some people so I think it's a good witness test to see how good .

gest strategy actually is. Yeah every pain look at okay, uh, i'm next we have a question from dave. What are satisfactory allocations for stocks and growth investments, bonds and income investments and cash at whatever age one is planning to retire?

Should a retirement have between fifteen and twenty percent of their investment in a broker account, forty five to fifty percent in uh of their investments in rough, and twenty five to thirty percent in traditional? Seems like a question right up. bill. Mister roth, sweets, ally.

right? This is from dave, one of the loyal. The us. Is usually in the irregular in the life chat this year the day um but again, if you ask for someone name, we bring out here so let's bring up bill sweet it's been a while yeah has been serving dipping us for months .

and of your interviewer comes pretty hard. But if you've heard of this term, walking the monia, if you've ve heard of this before.

my kids like walking toko. I've never heard walking the moni.

Apparently I have IT. Yeah, i've never heard determine in my life. So I think they just made that up after cover. They were like, we need a new disease.

a new plague to put on the .

people where the I like omb e no.

it's like a hacking demonio. But yes, IT IT does not like the walking dead here. A great, great question from dave. Big, big fan. So I i've .

never looked at this before for my personal accounts, why I should look at this today. And here here's why am so this is like the og yim cram er tel me from diversified. So I got seventy percent of my count, thirty one percent in roth and fifty two percent in traditional.

I think most of IT is because the sip, I has the higher limit when I put more in there and also I just built the traditional as that earlier. In the rough foreign I didn't have till later, but it's not a bad max, right? Yeah.

that's very interesting. I think i'm very diversified. Fifty fifty broker verses off because I don't traditional dunk and you are on the allocation spectrum.

not really OK.

So what is dave? Dave, dave says, what did you say? Twenty percent or so in broken age, forty five, fifty in raw, twenty thirty in traditional. Does that sound like a pretty sweet pot for you in terms of balancing out optionality and taxi efficiency?

Yeah, I love the idea in dave Davis thinking very smartly. It's not about to build up. What should I do today? It's starting from where you want to be right then backwards. But then I think just skipped to the chase.

The the big reason why you're going to have variance and outcomes, you're not going to be able to correctly achieve whatever target delegations you said is because you're limited on what you can contribute specifically to retirement accounts and that a lot depends on your personal situation. So what I did do, I think a third is a perfectly reasonable way to baLance this right in the absence of perfect information, diversify. And I don't think there's anything wrong with just just splitting splinting things in third that goes back to literally the bible.

So we're talking in six thousand years, but I did prepare just to church to talk through some of the advances, disadvantages, junk we church this on. So just very simple for the viewers at home. Uh, there are advantages, disadvantages in the distribution phase, uh, that might come in to each of these.

And I think that the goal to me would be diversification is that you want to be able to kind of pick and choose and pulled down assets to finance your life to overspending regardless when you retire. And there, there's no clear option. I mean, I think where i've kind advocated force, I would rather be all the way in the this chart right personally or rather be one hundred percent rough.

But even I think that's the wrong answer because as you can see, there are disappoint energies to be one hundred percent rough. If you're distributing all of your roth asses and retirement, you're not filling up blow tax rack. It's you effectively you're giving away empty seats that he could others SE be not paying any income tax.

So I think there there are advantages in disadventure each bend. There is something that stood out to me in this church. What stood out stands out to you.

Um I got nothing.

But the thing for me was like the advantages that you get .

through traditional C I was .

thinking about IT. You get tax to furl, right? You get that with a raw to you get the ability to tax free rebaLance.

That's a big one. You got a prior tax to your tax deduction, right? You can control timing. You can come and you can fill below tax racket. I think all of those fit into traditional and why there's really no one size fit all.

I think so kind of compliments in a lot ways. You can use the traditional offset some of those rough advantage and disadvantage.

exactly. That's exactly the point. And there there ways to slice that bucket. So I think ultimately is gona differ for everybody. But I think a target of a third, the third, the third me makes a lot of sense. And then let the path dictate, if you can, treatment or step ira, you're probably going to end up with a higher traditional baLance. And you would have also.

I think other part of dave question was because we ve been talking a lot about earlier people trying to figure that, that mix ah and what is the best mix in his point is like shouldn't there just be a sort spot for everyone and obvious, say, IT differs because for the early retire, you can touch some of other traditional assets, right if you don't want to pay a penalty um but yeah that's why tear point the keep IT simple that that's like the Harry markets right the efficient frontier guy said. And I looked at all this efficient front yourself and I was to fifty fifty portfolio because yeah.

he was easy. Or war buffets strategy, right? It's ninety percent in etf, ten percent every vote, right? So if the greatest minds in finance, a kind of come to simple beat complex, I I don't think we can beat that in.

yes. But I like your idea that if you get all your money in all facts, that's not the ideal.

It's not. It's not and i'm desperately trying to achieve that. And i'm i'm feeling so right.

Next question .

set in the chat. If if gung starts investing response way, i'm out. Sorry, I bought two penny stocks today. Yeah, i'm .

next question .

from S. D. I'm thirty eight, getting close to middle age and moved to U. S. From india in two thousand eight from my masters degree. I started working full time in twenty seven, but doe contributing to my foreland k until twenty fourteen as I wasn't sure i'd stay here, permanent wife changed that. My wife, and now we have beautiful twenty dollars.

My four one key is around three hundred and eighty thousand dollars, with allocations to E, T, S and stocks like triple Q, S, M H, amazon, google, N, L R C X, not the most that one. Along with large cap S M P five hundred index funds. I also have around five hundred and seventy five thousand dollars in tax for broker accounts.

And I taking too much risk. How does my progress compare to others? In my age group lam research, I wanted say, okay, yeah, yeah.

I know that. So first, while well done, since get a little bit of late, jump on at four one k you're almost forty, but you're still doing pretty good. I already also congrats on the twins.

I feel like there's a bound of their parents of twins. I don't want to have like stolen value here here, bill. But I feel like when I talk to parents of twins, which is kind of we went to the same battle together, we can annoy talking about um here's the deal.

Sd has a once a million book between retirement a broker accounts and he thirty eight, like however, you want to talk about IT here where you live or how you how you're living, end of story. You're doing great. Like you're basically million before age for john for the time here we have this is from the federal reserve.

They look at the the median average in a different bucket for how people are in the ages of thirty five or thirty nine. This is where S D is that here averages about five hundred thousand. That's obviously su by the higher end.

Top desi is eight hundred and sixty four thousand, meeting is one hundred and thirty eight thousand. This is network. So he only gave his his retirement in broke account.

So I don't know he is a house. He has an any debt, but just assets alone. We're talking easily in the top ten percent for your age group, so you are doing just fine. However, I think my my usual advice are getting to charge off.

I don't like comparing myself or not only comparing myself to others when that comes to finances like this because a lot of IT, like you're peers, your peer age group, because a lot of IT is like money is kind of like a risk profile, right? It's circumstantial where you live, what kind of lifestyle you lead debt spending at a family circumstances. I don't think IT ever makes sense because I think we all compare ourself in relative basis, and I don't think it's very helpful.

Yeah, there's no one size fits all portfolio really does depend what I just love just two things about sd. One, I love uh, year of this having folks come to the U S. And contribute like that's really awesome regardless we come from to come to the U S.

And choose to be here is a privilege um to be a part of the country. But then secondly, just that ultimately if if you're willing to take on that level of risk and you can tolerate the drawdown, you well on sd done great bend over the last ten to twelve years invested in this portfolio. I think there is no one size if it's all. And rather than try to pick the purply folio, try to pick the portfolio to you because you're going to be able to stick with that from the one right.

One of the things I would say when he comes to the risk, he said I might take too much risk in abb. So we don't know, but I think losses, dollar losses that matter a lot more than percentage losses, the more you get. So now you have almost a million box that nine heard fifty five thousand here.

Like how much are you willing to see evaporate from a dollar perspective? right? What's your what's your line in the sand? If you're if you're portal link with the six hundred thousand dollars in a month like that basic would have happened in the covet plunge.

Would you be OK with that if you all your money stocks and all be risky stocks and he and more tech heavy stocks too. So we could be more like a forty, fifty percent plan potentially. Like could you see that nine and fifty five couldn't have and now you're at whatever four hundred something, how would you feel you still stick with IT? And so I think that something think about like now you have more money.

Do you need to diverse y the whole? You concentrate to get ridge and you diverse to stay ridge? That's a question I would ask in.

The other thing is, do you have a portfolio of stocks and funds that you have? A plan is a huge difference that the old memory, you have a portfolio in the plan. Now they have more money. You probably need to think more about the plan than just a portfolio, right?

And the big behavioral hat for me, ban, we ve talked about this a lot, but if you're not going to touch my retirement encountered sixty. I don't Frankly care what's in the dot, what's in account right now, right? It's it's a number. It's up there in the spread sheet. But ultimately, trains lagging in into the future spending is really what matters. And in a lot of ways, if you have another twenty years to invest, you probably do want a big drawed down happening now, right? So you look at that is a good thing because that was gonna ve your compact games in the future.

Keep saving. But regardless, he is doing very well for it's great. great.

I I have a question. I'm all surprised by the network statistics. Um for my age group, I back that's after network is after removing like student landa, right?

yes. So as as many liabilities you think is higher lower than you would .

have thought way higher .

all the medium, one hundred forty thousand, one hundred thirty thousand. I think you're looking .

at the higher than average as five hundred.

And well, again, but the average the media numbers is more important than the average. The average is being secured. I think the top of one percent was like four million dollars, which thinks i'm dead.

So so the medium is the .

one you want to look at. The media makes more sense to the average being pulled away.

I T that by myself.

yeah. So the top ten is a lot of that average comes from the top ten percent in the top of one percent. So actually I built this chart in the top one percent was on there. I think I was like four point one million dollars and I totally stewed and I made look weird. I thought ticket off of there that isn't make any sense o so the media one hundred and forty thousand that to me is more representative .

than the average OK okay.

I was say, yeah, that's how you can lie with sticks, right? Yeah so that's why we got to look at look at different both both ways alright, we got one more.

Ah okay, next we have a question from adam. I was thinking about selling restricted stock units to pay for a kitchen up grade then IT hit me is the benefit of a he walk a home I would want of credit ah for those new here um is the benefit of the heat get dunk and .

shown off for all yes.

just I got all these accounts today. Ah is the benefit of the health c that the interest rate for a line of credit like this is more than the tax burden of R S use tax twice once on transfer and s on capital gain sale, thirty seven percent plus twenty percent. Now evenly. I thought that if I pay in cash is the cheapest option of all, but now i'm considering using a heat walk because even though rates aren't great right now, it's still cheaper than attacks I would pay to sell stock. How should I be thinking about this?

I really like this question because it's most like a CEO thinking through a capital allocation decision, right? Wow, so ill you can talk about of this from the taxi of things the way the simple accommodates. Or one for me here is the health makes more sense to me because that's literally the reason these things exist. You use the homework I line of credit to renovate your home, and then you can write the interests of so what would say you on this decision?

yeah. And I like that and I like your. The C E O, the C F O know which I play role, uh, on a day job.

But balancing that death nequit, right? Looking at that baLance ede. Ultimately, if you take on the liability, right, you are reducing your network done. Can just spending on how you play IT. But I didn't want to take the tax angle on the years because I think these are really two different questions that they were taking a look at. So john, can you please chart on my quick or if you have, explain your sheet?

And where is second, where did you get? Where did you get .

the but yeah.

I told.

I told Young, same sweet. He won't able to watch any power rangers until he, till he drew me a red, you know, simple l up .

the very scary.

Yes, so but bin.

you want you want things? Sorry, but just yeah, for you dive into this. Remind me R, S. Use are purchased by the employee or just granted?

Uh, okay, great. So R S use restricted stock units. Very typically, these are granted as part of a compensation package OK.

And don, you're sitting me up here because about to wind up on my R S. U. Splinter, but they're really three time periods that we need to pay attention to de R S. U. S, john.

And all the way in the left on IT are you grant, when the company says, hey, we're going to grant you one thousand restricted stock units, been for one hundred dollars each. Effectively, that's a granted of one hundred thousand dollars, right? Which is a wealthy sum of money for any, for any man or woman in the united states.

However, that doesn't do anything right. I mean, there's no taxable event there because you can't spend the money. You can't do anything with a granted or issue.

Fast forward a year, two years, maybe your company needs to hit some sort of profitability metric. That's when the R, S, U. vest.

That's when the tax. So bin, you and I are relatively well off in the world. You and I make a healthy salad. Then would you like to see not to brag band? Would you like to receive your company, your salary next year in the form of company stock?

Is this a trick question? And I have rather have the money, right? Because you can spend the money.

But what the R S U is, they are just paying you, your compensation, your cash, but is coming in the form of company stocks. So john, I, can we pull up the church or quake? And what happens when your are few vests is you then have to pay the tax as if that was cash.

So one hundred thousand hours is going to cost seven thousand hours of fia. It's going to cost you thirty five thousand hours of federal income tax at a medium high tax bracket in seven thousand hours of state income tax. So that hundred thousand dollar grant of stock cost you over forty five, fifty thousand dollars of a taxes, right? As if IT was cash.

And that's the way to think about R S U. R S sus are paying in company stock, but ultimately, it's getting tag as if it's cash. Now the question here is, well, i'm getting tax twice and technically the answer is yes.

However, once that vesting event happens and you have the stock in your bank account, you're free to sell IT. You can sell at that instant and basically get that hundred thousand hours of cash that you would have otherwise scotland, if IT, if IT was paid you in cash. However, if you then sit and weight and you get a capital appreciation on the stock from the data vest, then you have a again and then you're paying capital gains back to the issue.

So three dates to pay attention to. But my argument here then is R S. Use are not getting tax twice really. You're just getting paid and company stock. And at the moment of vesting, probably should be transfering that to a cash account instead holding onto the stock if if that fits finance.

So your point is you're paying the taxes anyway. You're ready paying and either way.

and you have no choice over the timing, right? What you do have choice over is, once you hold that stock, the question I would ask you, would I go out and buy one hundred thousand hours of this company stock? If I if I just wanted to invest.

the opportunity cost is a bigger key here, then then the taxi is like, would you rather sell this stock to pay for the home renovation or take on the debt? yeah. Would you rather let this ride and potentially miss out on further gains? That so that makes more sense.

right? So when the issues best, you will just have stock our shoes. IT might still .

be in an art account, but yeah, effectively, you have that stock in a broker account. And if you sell at that instant, if you sell the day that if that's duncan, there's no there's no further .

if you're an individual employee, you say i'm sitting on these amazing games. My stack is at ten ex in the last five years or whatever IT is, maybe I should take some money on the table. Yes, maybe that makes sense. Otherwise I still think the the whole point of the hillock is that you use a prom renovations. So if if you're sitting on a ton of house money, sure put you back into your other house.

Yes, it's also really it's really need timing tool band because then you can initiate your prepares, right, get stuff moving here in the first week of december and then just liquidity the stock in january, february, right?

He knocks are very.

very flexible, yes. But outside of tax, the other big problem that always use tend to they tend to do accumulate, right? If you doing nothing and you just let the stock fast, you pay your tax, you matter your cpa because you forty ours every year in tax and you don't know why the reason is the stock is building up any broken, you can't end.

You know what happens over time to do a lot of clients that get companies stocks right? They have a concentration problem. Yeah so to me, it's it's holistic in a plan. You need to be deciding when you want to solve this stuff, not if. Because what you don't want to do is be that stereo of typical video employee, god blessing. If ninety percent of your if you your network is tied to accompany that, you're also working for if something happens to your job of that company, you're up poops s creek, right?

We every everyone likes talking about in video a lot because it's a great story, but i'm sure this happens a lot. Companies go under or the stock is the half.

Yeah lady and brother is iron. You could look at the yeah, if you would, probably much rather at the kitchen. And the north of stock thing is you could split the difference here like, so we did some home renovations this past year, and I paid for half of IT and cash at the savings and I paid for half of the heloc, and then I usually paid the hillock over right or now twelve, eighteen months, I paid off.

And even though rates are high right now over twelve, eight months, that's not honest in terms of i'm paying seven eight percent of my heat lock is not going to kill me over that time here. If I went arrived for twenty years then it's gonna ter um so I think you could also split a difference. I am going to a little a sark, and i'm also going to use IT with the heck.

And you do that way. I've even got a third option, let's say, hypothetically, ally, your R, S, U. Shares your next track vests right on december first, january first. Maybe you not out the heat lock now, but then just convert that immediately to cash, right? There's no additional tax if you just get the stock and sell IT.

True you to your point, that's one of the great selling points to be the hillock is that, that allows you flexibility. So I can read to check. I mind anytime I want.

Well, having moved cash around to the accounts or sell something and then you can be flexible. And then if you want to pay that he down, okay, now i'm going to sell. Now i'm going to move IT. You don't have to do IT right away. IT gives you flexibility.

You can also sell some calls against that talk, get some income going. And right .

yeah yeah. Then then, then off the reservation there.

Yeah yes.

Right question.

Let's always very caution from doing. My wife loves this. This question cracks me up. Uh, my wife loves wearing jury, and I White giving a to as a gift for berta in Christmas. We like IT because you can wear everyday and IT doesn't take up extra space in our quartered house.

I spent anywhere from two hundred two thousand hours on a peaceful jury, with the amount going up almost every year as our income continues to grow between everything i've gotten her a jury, she's bout herself, a wedding ring and stuff we ve heard of from family. We might have over twenty five thousand dollars in jury. I don't any gold and any my portfolios, but I like the idea of owning the physical asset in of that being in a burker.

We never play on selling any of IT, but it's always there if we need IT and a connect as diversification to our stocks and real city. Am I crazy for thinking this? Does this mean I invested in gold or soa? You can service exposure to the go market. Should I be buying my wife bitcoin instead?

I have two words for doing cubic zonia. I often think about my wife's engagement ring. And could we even get close to what we bought IT for back then twenty years ago? Whatever I I like what was the markup? There's no way you could get what you pay for IT, right?

No big or iconia probably no.

it's not. They told me to put my face in the little microscope and look at IT and I go, h sure, you great. I know anything here.

Look at, look at that in the microscope can see there's no cut things. I know. Where do you sell at a point shop?

Just image. Imagine if you had given her big in yeah friend of the show eat .

and sweet brother of of me is uh a diamond sector uh, in the diamond state in new york city. We should have want to show and ask him that question, but you have a worthless tic time. It's right. Mean, that changed the game the last ten years.

Certainly was. The cubes or konnie is essentially no.

no, they they literally make diamonds. You're not wear this. Yeah, instead of dyking up from the ground, they just make them in a lap down and they are less.

Yes, no. But here's a thing. I think it's a nice gesture. If you've ever planning on selling IT, i'm really not sure IT to come as part of your portfolio. That sounds almost more like a happy in an asset class. And again, it's it's a tangible thing if if taking IT seriously, like you have a safe to keep this safe in your home, do you have insurance on this in case that against lost or stolen? So those are the quite if you're gonna thinking of IT seriously and asset class, those are at the kind of questions that I would be asking yeah.

I sent all of your viewer email to ask the compound gmail that come on this one. But what is the point? Like what went have anyone in .

the last forty .

years on bar IT is? Like, here's what I need for this moment. I mean, the only justification I can think of having a large brick of middle in my basement in a safe is if somebody breaks in and I want to smash them with that, with the right, that's the only thing. And I I have sister or blocks that I can use for that purpose.

have best to just full of guns and ammo and can do right?

Yeah I don't understand. I'm not trying to not anybody else is investment portfolio because what works for you works for you. But what is this obsession with shining meddle? I don't .

understand.

IT clear call, I guess so.

I guess so. Yeah.

cause I have some cool in gold and solar coins.

I not be your gold bars like I understand. And this to explain this.

So the the best one I heard on this is William bernstein said a bar of gold in the time of jesus when he walked the earth, could buy a fine men suit. And IT still does so today. And so if in that instance it's like an inflation edroy ally keeps up with inflation and for whatever reason, people to back then decided gold is shining and pretty and we're going to be make IT worth something.

And for thousands of years now, he has done that. Agree, but but I think if your wife gets a cc income from wearing the jury and SHE enjoys IT, and you enjoy buying IT for her, keep doing IT as a gift to her, I am not sure that I would come as an asset in portfolio would be of fun. Take the one SHE never wears anymore, bring IT to a on shop and see if they give you for IT. I'd be curious to hear what kind of mark down.

I would make sure she's on the same page.

Second day market.

you're you're not selling her jewelry out .

from trade IT, for sure. I just looking for a market value of this. You got to .

mark that portfolio. My question is say you have a black gold and you want to cash in because you have a big expense coming up. I don't even .

know where you would take IT. Oh.

your stores say we buy, go walk into with a brink of gold.

Well, yeah, again, you pay a health FM sure on the exchange. But this a black change .

somewhere they can solve this.

Me isn't a book of what, in a book of golby like three, four .

thousand hours.

It's why you buy GLD.

So I start a fun question.

but what Price would you put on your .

miracle happiness? Well, they also they mentioned something that I think is kind of interesting. Do you think most people, uh, adjust their gift giving with their income? So like every year, you know they get, they get a ten percent race. They total increase the first day in Christmas gift by ten percent. Do you think how that works for most people?

Yes, I think so. You're wear that.

You think you're like saying, oh, this year I I made this much more money. I should spend this much more.

I think it's more of vibes kind of thing. Do okay. You know the thing that depends on how .

much you after around, uh, during the year because that's when you .

find out you're all this, sam is how old about seven.

seven. And we're playing basketball tonight for the first time this year. I'm Jesse.

Okay, so our seven years odds are fine. My daughter, my son is a oblivious, because boys are oblivious everything. My daughter, you sure sand real? She's already asking. And a is she's my Youngest is kind of sad that I feel like sand has done.

Wow, that had happens so ready. Yeah, yeah. I was having a conversation with the kids at dinner about a week ago, and my same same was asking questions.

He just said, you, what's up this? What's up at that? And he actually said this to me, i'm not making this up.

He said, dad, what is more likely that all of the parents are just lying about santa? They'll just all pretending? Or do you think there's actually a man who flights from the north pole and delivers the presence? And I said, well, what do you think and he was like, that's what the presents are coming from. Dad, come on. And I knew, I knew he was stole my son and I.

my daughter, if he says all the kids at school are saying he's not really in where to listen. If you believe in sana of the Christan spirit, then in your mind he's real.

He believes in you. Yeah, well, fail. L.

I I got to say that's that's got to be the worst kids. No offencing out there. I'm started. You A D, D y're, they're doing rates, which is .

end up in digits. So I don't like kids. Uh, videos face the compound are now up on spottier y we also got the spotify rap stuff. Don't can anything to share?

Yeah, john, throw up the look of these games. wow. You know bull market .

and as the compound.

that's right. I mean, not that impressive compared to a lot of the stocks Better up more than this this year. I S yeah, I think that's pretty good.

We're out performing dunk in .

portfolio though prd to be a part of the show.

and i'm proud of both of you. Thank you to everyone chat. Thank you very much.

Twitter, leave us a comment. Leave us a question. Ask the compound show at g mail dot com. And we still have two our shows this year, I think sometime next week.

Yeah see.

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