How to plan for $1,000,000 per Bitcoin
50:15 Share

Are in mich. So you have been treating a lot recently that holding is not a financial plan. What do you mean by this? Start mining bitcoin today and multiple dop lobar solutions dog on.

yeah. So IT just seems that most bit coiner ers, in my experience, have a misconception. I would say that just simply buying and holding bitcoin solves all of their financial problems. Answers that's the answer to all of their financial questions or circumstances. And I just think that is very short sided. Um to be honest, I think there's a lot of blind spots and people who approach planning for their financial future that way because you know at least at this point in time, like you know, bitcoin hasn't made financial advisors obsol. Whether that happens or not, I don't think IT will entirely either is definitely a large chunk of the financial industry that vitamin wood wipe out or make obsolete if if we went to that a bit when standard, you know, in the U S.

But at this point time, I mean, that really just changes the way that we approach and think through financial planning topics, you know, like retirement planning, estate planning and herriton planning and taxes, insurance, cash, low planning for goals like all of these things that we have to consider, whether we own traditional financial assets or we own bick coin. You know, we still have to consider right now for someone who holds a significant on a bitcoin. You know, I would even argue that we have a lot more considerations, you know, is self custody and some in other aspects.

And so at the end of the day, like when you really boil IT down, financial planning is tying your financial assets with your life, who you are in the outcomes that you want to achieve for yourself and your family. And so that really will never go away. There will be those financial principles that we will still apply you, even if you we reached this bicky in standard world where IT really changes a lot of the investment basis, we see IT right now.

And so I think it's just it's very short sited and you're doing yourself at this service if you say, oh, just buying as much bit when as possible, putting IT in to you know called storage and then holding for the next hundred years and passing IT to my kids. And that's really all the extent of how I think through this. I think you're doing yourself in your family a major disservice um by ignoring all of these other areas that I just mentioned. So you know we can dive into those you specific factors deeper, but that's really what I mean by saying, you know holding is not a financial plan.

Yeah I tend to agree and maybe almost hypocritically because I I certainly approach bit when I first figured that out, I took that that approach that, alright, forget everything I know, bion hole, bion hole, bin home. And two extent, I still kind of appeal to that ethos, mostly through a sense of getting people off of zero, right?

When you come to bitcoin, IT could be very daunting task, you know, thinking of all right, getting my coins off the exchange in the single sig and the multi sig and the collaborative custody and to figure your inherits like there's so many different steps. So I understand this sentiment of like, hey, don't worry, but there is a lot of complicated things. Just buy and hold dick in.

I get that as a step zero or a step one. But once you've done that all right now, there's a lot more layers you need to start on packing. There's more things you need to do to go from, hey, I thought and hold bitcoin.

And I want to pass this to my grandchildren, to my grandchildren's grandchildren. There's a lot of steps there in between. And I definitely agree with you. Like if you're not thinking about these plans, if you're not thinking about IT deeper, then you're definitely doing yourself and your your inheritors at this service.

Yeah absolutely. And you know for you being a Young guy, Young single guy, you know don't really have a lot of financial variability or situations popping up. You know maybe that is all that you need for right now, but when you get married, you have kids, maybe you start your own business or you get equity in the place you're working for and you know you start getting a lot more financial complexity.

That's where you know this stuff really must come into play. And honestly, I think this probably speaks to a bigger misconception with the financial advisory space in general. There are the asset managers will say our investment managers that you know they will take a clients money, they will charge one percent and put him into the S M P.

Five hundred, maybe the total bond market index or something like that. And that's the extent of the service they provide. But with us, you know, we're really looking at everything holistically. We're not just putting people in the index fans and saying, OK, our job is done that that's all you need. good.

Like I said, we're looking at all of these other areas and how they tied together and how they actually connect the dots between where you are now and where you want to go. And so you know, there is a subsection of the financial industry that that's what they do. And I wish I wish you didn't exist just as much as everyone else because they're doing more damage then they are doing good.

But um you know with financial planner like myself, know and others, we're really taking IT to that deeper level. And it's very, very beneficial even in the intangible aspects of our lives. You know, having more piece of mind, having clarity on what to do, just being able to sleep Better at night, knowing, you know, if something word to happen to me tomorrow, my kids are going to be taken care of.

You know, I know i'm on track to be able to pay for their college, if that's what I want to do, or fun the start of their business. Or, you know, whatever IT may be, give a large donation to my church and still be able to retire and live comfortable. Ly, whatever your goals are and the factors are, you know there there is an tangible aspect to the service that we provide as well outside just the spread sheet in the numbers.

Yeah that make sort of sense how much of corn traditional financial wisdom do you think it's still applicable? Kind of ideas like diversification, sixty forty portfolio, mutual funds staying debt free.

How much of that do you think is is still relevant and versus like this sort of big coin or ethos, which is just hold drone t by accumulate as much big one as possible, don't don't diversify, like even accumulate fiat debt, right? Because big coin nars, we understand that fight money loses value. So having fiat tonini the deck can actually be a good thing. What IT really sort to see this baLance between, like dick in financial planning is, I guess you could say IT and sort of traditional dave .

antti style restaurant yeah I mean the word the important word that you use was baLance um and I think we have to find that and it's different for everybody. You know the idea that baLance looks the same for everyone is is out the window.

You know, I listen to a lot of alex mosi a podcast, you know, just business podcast in general, and he was saying, know, some seasons your baLance will look like working seven days a week, twelve hours a day, because that's what you need to do to to get the job done um so anyways time that back to you know all of these traditional financial principles like diversification, for example um when most say feet hot, financial advisers refer to diversification. They're talking about okay, we've got you know an index fund that holds five hundred companies. S, M, P.

Five hundred, you know, that's diversified. Maybe we have twenty percent of our portfolio and international equalities and maybe we have ten percent of our portfolio and you have a total bond market index or something. They feel like they are well diversified.

That's what they would call IT. But in reality, it's not because the core relation to the S M P hundred of the overall U S. Stock market usually still close to one, if not one, meaning they move hand in hand.

So you're really not diversified at all. Know what what diversification means is owning a portfolio. Others actually has uncorrelated assets. So one of your assets is up, maybe another other asset class is down. You know that's what diversification really is and that ultimately, you know what bitcoin can provide in a portfolio.

Is that on correlation to these other assets or other asset classes along with gold commodities, you know, other things that we hold on our client portfolios. And so I think the traditional view of diversification is very misguided and misunderstood. And and you know we take a real true diversification approach to our asset allocation with clients.

Um with that being said, you know we work clients, you are a hundred percent allocated to big, that's all they own um in some who you'd rather just hold twenty percent you know a bit in and that's usually the the lowest allocation that you a client would have of us. So it's it's dependent on the person for sure, you know and we can get into the allocation, you know more specifically and diversification depends on the person. And I think the way that most financial advisors look at IT is completely wrong anyways.

You know some other aspects you mentioned debt, for example, like you know borrowing a money that is decreasing in value over time to buy an asset that is increasing in value over time is you know a good financial strategy. You know IT depends on to what extinct and in what situation does IT actually make sense. And so it's not an all or nothing which is really I think the approach that we take in general to all of this stuff is, let's find the right mix of, you know, whatever strategy that might be that is actually good for you and your situation.

IT may not be the most optimized thing to do on the spread sheet, but again, we're not living in a spread sheet world. We're living we're trying to might help our clients achieve the life that they want. And so sometimes we just have to zoom out, understand that we're trying to help the client tie their financial assets to the outcomes that they want to achieve and take the best way to get there.

So you know, it's a more new ones approach. I would say that we take and we can dive into anyone specific you know aspect if you want. Yeah well, I really .

like this point. You bring up about diversification because IT is a matter really how diversified your portfolio was in twenty, twenty, all assets went down, right? You're not you.

We're protected from anything there. And I think what we've seen over the last few years, macrovision, there's kind of just one trade, right? It's a global liquidity.

Is that going to expand ders is is going to contract. And every. That moves accordingly.

So having a diversified holdings of all things that are tired of global liquidity, he doesn't really do you any good, right? And so to me, that makes bit on shine the british, right, because IT is the thing that is the most tired of global liquidity. So with the global liquidity design increase over time, why not just hold bitcoin?

Do you have like a certain because you mentioned some clients, they have blow bar twenty percent big on allocation. So as much as a hundred percent, do you have a certain rule of thun that you'd like to follow? I imagine a lot of you know the target allocations very age dependent. What's kind of your your general principle there and and I know it's going to be different for every case, but is there a rule of thum you would have?

Yeah so um I just speak to your last point before I move on to that. I mean, that is essentially our investment philosophy in nettie is all assets are bea to monetary policy or monetary inflation is what we would like to say, our global equities ity you can plug in where you want there.

Um and so when we're looking at diversification, we're honestly thinking from the aspect of what assets or asset classes are gna bit and fit most from new liquidity coming into the system. We know that they have to continue to explain the money supply or collapses in on itself. And so you we look at the asset classes and see with their sensitivity to the money supply and with a long term investing approach, we can afford deride the volatility along the way.

You know, humanity, march of twenty, that was the the fastest market crash in history, but also the fastest rebound because they turned on the money printers. They don't let things fail anymore. And so we just really have to make sure that we own the right assets that will actually outpace monetary inflation, help us grow our wealth over time.

And so you know, ya's bitcoin h is one hundred percent bitcoin in, know maybe for somebody. But we also can look at you tech doctor, just high margin companies that can afford to ride these liquidity cycles and take advantage of cheap money, you know, or hard as other hard assets like gold, like real state, like commodities, you know, in a portfolio. So I would say that more our approaches to diversification because of the the underlying view of our financial system that most fia financial advisers just don't have.

And so I had to speak to this big in allocation you know work comfortable if someone wants to be a hundred percent, twenty percent it's the answer can be zero percent. You know I think we're all on the same page there. Listen the big one world um but the big point that I try to and we try to make with our clients, no matter where they come in standing with their big in allocation is do you understand the intentional you do you understand the decision that you're making? Are you making this decision intentionally knowing for well the potential outcomes that could happen? So for example, someone who is a hundred percent bitcoin, you know, we just have to be honest.

You know, let's zoom out for a second. Yeah you know we see the asset that book on is, yes, it's the greatest assets that ever been discovered. Yes, we feel this kind of english haiti that we want to accumulate as much as possible. But at the end of the day, again, when we just zoom out and we realize that bitcoin is not at the end, is actually a means to an end. And the ultimate in that we're trying to achieve is the life outcomes, the goals that you want to achieve for your family, for your community, for your loved ones.

And so is one hundred percent bitcoin allocation right for that? For someone like you who's deep in the industry has a lot of understanding of what bitcoin is, if you're willing to live with the fact that maybe this doesn't play out like we all think I can, maybe bitcoin does go to zero, you know, is that very likely? Absolutely not. I think it's more likely that bitcoin could take longer to reach the values that we expect. Um you know that then we can go ahead and retire and be the the wealthiest you know in the world.

There are whatever you may be, whatever we want to say um but as long as we're making an intentional decision and willing to live with the opportunity cost of that decision, then I think it's okay if that's fifty percent and we're like, okay if we run the numbers for a client and we're like here's the potential outcomes on bitcoin based on what we see previous adoption um performance, you know all these different numbers. And then here's know your future network report folio value based on these the fifty percent you know other assets. So we just run that at different allocations, know those projections into the future and say if you're comfortable with these scenario, then we are comfortable with you having hundred percent, you know, big coin allocation.

If you're not comfortable with those scenario, let's say bitcoin doesn't play out like we think maybe fifty percent is Better. If bitcoin somehow goes to euro, maybe the other fifty percent of your portfolio, your wealth can still achieve the goals and the outcomes again, that you want for you and your family. And so there really is no rural of them.

I'll say. At a minimum, we typically go a straight to twenty percent allocation. But at this point in our firm, we are bringing on bitcoin as clients and as you know, big coiners won't sit at twenty percent for very long. You know we have people we have most of our clients coming in anywhere from sixty to one hundred percent, you know, biton allocation. And so there they need a adviser that understands a bitcoin at a deep level and can speak to these other financial planning topics and help them navigate their potential future based on however much they own.

Yeah, that makes sense. If if I were in your shoes, I wouldn't be taking any non bit when clients either because quite Frankly, like you probably don't want to be spending out of your time having to educate people from the beginning and and trying to hugged them to just get up a small allocation in the big coin.

You said, I really like the way said this, bitcoin is not the end and as a means to an end, which would be to increase the quality of your life, right? Because money or money is sort of this tangible way to store your time and energy, right? We work and we labor to receive money, and we hope that that that can store our efforts today through time.

And then you can trade IT in the future for goods and services, which inherently kind of means selling or spending your bitcoin. And as we approach this bull market, I think that's something that's gonna be on the front of people's minds over the next twelve to eighteen months or so. How do you approach this idea of spending your bitcoin and sort of critique taking profits? Do you think maybe dca out of your position selling a little bit, bit a bit in every week? Like what's the most kind of prudent wait to go about this and all sort of keeping the tax question .

in mind as well? Yeah, good question. So again, we have to tie this back to our financial circumstances where we are.

If IT is someone who you know, we we just finished up a project based a plan for a client, not too longer. I think he's actually beginning this year. He was looking to retire early on hundred percent big coin allocation. And we had to really talk with him about, okay, if let's say you retire, this bull market doesn't play out, you know or maybe you get to the top of the bull marketing, you decide to retire and then you have to start selling your bick to live off of IT. And we have an eighty percent drop down, you know now your you know eighty thousand dollars are spending every year is a lot more bitcoin than IT was just six, twelve months ago.

So we need to start thinking about, okay, that you know that what we would call that in traditional financial planning is sequences return risk, meaning that okay, in the early years of retirement, if we get very bad returns and we're taking a large chunk of out out of our portfolio to spend IT, IT could put our long term goals at risk. And so if it's someone in that situation, maybe they do want to take games off the table. And ultimately, that is what we recommended with you.

After talking and getting to know him, I was like, okay, based on these different Price targets, let's go ahead and take years worth of expenses off the table for you so that, okay, you know, we see this kind of four years cycle playing out a bit when right now, whether than not that will continue to to play out over the years, who knows? But you know, if we get to, you know, hundred and fifty thousand dol big coin, okay, let's go ahead and take fifty hundred, you maybe hundred and fifty thousand dollars worth off the table. And that's three worth three years worth of this guy's expenses.

So then we can ride out whatever happens you know, in the next short term and hope fully get to the next pool market where we take, you know, another few years worth of expenses off the table. And that was the ultimate strategy that we decided to go with um and he was happy with that. You know it's tough for people to think about selling their big in.

But again, bitcoin is the means to an IT you know wealth at the end of the day. Money at the end of the day is the total live the life we want. So we need to make sure that we're not so far down the rap hole that were so close to the bitcoin picture that we can't zoom out and really remember what our true priorities are in this life.

So IT all comes down to circumstances as far as how we approach selling, not selling, if if someone who still accumulating wealth, you know, they don't need IT anytime soon. Now we're not we're not thinking about selling ever, and that's the case for a lot of our clients. You know, we have a couple of clients on a very, very significant amount of the coin.

And so they are thinking about, okay, how do I get bit point out of my estate to pass IT to my grandchildren in the most tax sufficiently that we can, you know, we're thinking of strategies to make sure that the bitcoin is never sold, know, at least not for multiple generations. And so IT all comes down to the circumstances and that goals, again, that you want to achieve, whether or not we're gonna ll not gonna ll. But I would say fundamental our approach is not trading bitcoin at all.

Um we're not thinking about IT in the silo as far as investment returns and trying to time the market with big going. We're thinking about IT do we need to sell to achieve X, Y, Z life is and that you have right now. Yeah that .

makes sense. And I like this approach of viewing get through kind of four year cycle, timeless, right? Of you are a hundred percent biton and you want to stop working, right? And that means your incomes going to zero. Essentially, you're not you're going to be drawing off the stack and set of adding to IT.

Well, why don't you you put aside enough to cover your expenses for the next four years and then if they going keeps playing like IT has historically been four years from now, you're kind of based theirs gna grow in purchasing power. You'll be able to take a little bit more off 附加赛。 You really eating into to your total bitcoin stash too much.

What is the optimal approach when IT comes to a state planning in passing your bitcoin onto two inheritors, says IT time locking is a collaboration. Multi sig, is that a trust? What you kind of think about that all idea?

Yeah, absolutely. So now there's really two different things that you mention there, the trust and the the custody set up。 Those are really the two factors. So we think, you know, we're thinking of how do we legally pass the bitcoin and then how do we make sure that our air actually get possession of the bitcoin. There's really those two different factories that we have to take into, into account.

And so I think at a fundamental level, most bitcoin nars don't realize that by default, your bitcoin will go through pervy um if you do not have a trust in place and the trust is not the owner of the big coin, does that mean you're giving up custody or control of your big one no not necessarily know with certain types of trust you may have to but um but at a fundamental level, if you just have a will or you don't have anything and you pass today that judge is going to announce to the world publicly this is how much bitcoin you here's who it's gonna to. And I don't think any big corners, any true bittner, i'll say, want that to happen. And so the first step is just making sure that we can we can avoid provi not have that happen, maintain our privacy, and legally pass the big point to the people that we want to without a becoming public to the entire world.

And so you do that first by setting up a revocable living trust, and then you have the the big coin owned by the trust. You can still in a hold IT and called storage single sig, multi sig um you know you could even have the collaboration custody set up you our thoughts on custody IT really just depends this crime situation in the outcomes that they want to achieve but add a very you know again, that fundamental level. We want to make sure that we get IT out of probated so that we're not publicly announcing this. How much IT is and who is going to as you get into more higher net worth you big coin ders, let's say, you know you're owning two, three, four million dollars for the big coin.

Didn't we need to start thinking about other state planning strategies to avoid estate taxes? So back in two thousand seventeen trump put in h into place the tax cut jobs act which basically doubled the h estate a tax exemption um allowing you uh I think right now it's like thirteen and a half million dollars per per persons or twenty six in some change per ah you know married couple and that amount of wealth to pass without at least being tax at the federal level there are state and that taxes forty percent usually for anything above that exemption level and that's actually that exhibition is actually set to come back down in twenty twenty six to, I believe, six million dollars you know per per spouse. And so if you're around that six million now arrange, we want to start thinking about, okay, should we set up an irrevocable trust of some kind that um gets that no bitcoin out of your estate and they can grow over time.

And then when he does pass two ears, IT avoids that forty percent you know a state tax because even if you're thirty five years old, you own five million years of the big one. That could be thirty, forty million dollars worth by the time you know you actually do por or want to give IT to your your children and grandchildren and acta. And so a forty percent tax, I don't think anybody wants a forty percent haircut taken off .

their big one. Now that's a ridiculously .

high number for sure. exactly. So planning ahead for this, you know, is critical right now for high now with big one or so.

Those are the estate planning strategies that you won to look into um on the legally passing my big coin side, you when you think about the custody structure um our thought processes, okay, we need to look at first how comfortable are you and your family you with bitcoin and a technical level with self custody. You know if you have a multiple set up, it's not collaborative. You just set up your own.

Is that gonna be easy for your your wife to then take over and get access to if something happens? Probably not. Um and so you know if you want a more text that we thinking about the inheritance, specifically a collaborative custody could be a good option there to make sure that that that facilitation um happens you of getting the bitcoin to the people that you wanted to get to make you sure they have access, you know allowing them to utilize IT for for whatever they would like.

You know if you have a single sig set up, that's simple, you know um and that maybe that may be the best option. Then know if you're somebody whose privacy focus you don't want to be, you don't want to have your vicot K Y C or tied to an institution. Um you know you would rather holding itself of custody or in called stories not have anybody know about IT.

Well then maybe we just go a single the single ground, add the past three or pin n onto your wall IT. And that is a lot easier instructions to be able to give to your wife and kids. Um so you ve got to think about the complexity aspects when IT comes to the people who are going to be receiving this big coin, can they access um are they comfortable with IT? That's really the biggest thing we we consider when we're thinking through the estate planning, an inheritance piece um when IT comes to just making sure they can get possession of the bitcoin ultimately.

yeah I I definitely agree. I think this the technical barrier with the people you want to inherit your big coin and is going to be the biggest chAllenge and not not overwhelming them. But at the same time, you want to make sure you do have a secure set up and this kind of trade off between vick inn's optimizing for privacy and then optimizing for other things.

I I think is really interesting because, well, if you have a bunch of bitcoin and you have you to say fifty million dollars with a bitcoin, it's going to be pretty hard to spend any of that on anything without in some way compromising your privacy like that's just the nature of, you know, if you want to go buy a lamborghini or ten million dollar bet, like someone's going to know you have money and I think that I arrest is going to be pretty, pretty curious if you purchase that you haven't disclosed any big coin holding. So definitely, I understand this inclination towards privacy, but at the same time, like ky, seeing some of your bitcoin stash to be able to to to not have the friends knocking on your door, I think it's a pretty worthwhile endeavor. A lot .

the version. And honestly, that's where a relationship, but trusted relationship, like hours, can come into play with big pointers. You know, specifically because we get this stuff.

And so you know, we have prospect right now who he doesn't want to work with on chain. He doesn't want to work with the a bigger institution because privacy is such a big deal. He expects a lot to push back in the future from the irs, from the government. Where are not that happens? You know, the kind of now they fight you stage, if you will, he he believes that that is a real reality that is coming our way.

And so instead, you know, he can still achieve this facilitation of inheritance, but by using us as the the collaboration piece, and we now have individual relationships, you know, with his family, with his ears, so that they know, okay, something happens to dad, or, you know, to mom and dad, you know, we can reach out to to match and and they know their entire financial situation. They know bitcoin. They can make sure that we get all this taking care of, and we don't have to worry about IT while still maintaining that privacy know because we're not going to be a large institution like know the ones I mentioned. So having a trusted relationship like that can be beneficial, al, still giving you the solutions that you want to without fully trusting a big institution.

right? Well, the word trust has a right and taste in many big corners mouth. But you do. You make a great point here, because if you don't have anybody in your life, you can trust to help your family. If something happens to you, deal with this with your big wine, like you're in a pretty precarious situation.

So I think really that's kind of the most underrated asset that big winners have at their disposal, which is just trusted people in their life that that can help them in the situation and they know they are not a know they're not afraid to disclose how much pick you have with these people or maybe even give them a key, right. And they're not going to try to run off for the big I think just having trust the people in your life as is really beneficial in many different ways. But specifically within this realm of a bitcoin in and hair and and something gets unique about your firm is among financial advisers.

I think you're probably the only one I know that recommends tiding to your clients, and I want to impact this sort of bit now. What do you why do you recommend this? How receptive of your clients? And then what is tithing actually look like in practice?

Yeah so for for us, our approach, you we are beliefs and jesus, not afraid to say, not afraid to market IT, not afraid to talk about IT with prospects. And if that really turns them off, okay, they weren't. They weren't the right clients for us.

Um you know why we even bring this up and talk about IT in the first place is because you because of our beliefs, we believe that. God loves a cheer forever, you know, and god blesses those who are willing to be generous to others and not, you know, hord. All of the resources that got has given them.

Ultimately, at the end of the day, he is the owner of our resources, and we are just temporary managers and stewards of those resources. And so if we fully believe that, you know, god will bless the the cheerful, generous giver, then why would we not recommend that to our clients? IT doesn't necessarily ily mean that god will bless them financially, doesn't always mean that.

But the best thing that you can have on your life is god's blessing. And so and so, following his principles that he is laid out for us, if that know, we believe that is the way to live the most fulfilled, best life. You that we can we are doing our lights of disservice by not encouraging them to live out those principles as well.

And so you know there will be people who won't agree with that. And I fully we fully understand that on that and you know uh will disagree to disagree not be the right fit. Um you know does that mean we have like every client is giving to their local church ten percent of their income on monthly basis? Now um you know it's it's a conversation that we bring up, we encourage.

But at the end of the day, you know, we're not forcing anything on our clients. We'll educate them and and give them our recommendations, give them what we believe is best um and and that is duty. But then what they choose to do is up to them.

And if they are like I don't wanted do that, i'd rather go in this direction OK. What will help them do that. But we planned to the seat and we have expressed, you know what we believe would be best for their situation.

And so yeah, we take a very bold approach. I would say the most, most people, they would say they're financial planners that are Christians. You were Christian financial planners know we believe that, that comes comes first and that leads into our perspective on the world, our beliefs and then ultimately what we recommend to clients.

And yeah and I believe big winners, you know it's early big winters are already in this position. But you know big quinn's as a whole will have a unique opportunity to be generous and really decide how they will give their resources to certain you know organizations that will make this world a Better place. I think big winter understanding of how this world Operates that most people don't have. And because of that unique world view, they can actually effect change more so than the person whose sylvia brain living, you know, walking around ice White shed, if you will.

Yeah, that was well said. And I tend to agree, most big winners i've met, not all, but most are of upstanding, moral character. So I am excited to kind of see this world where big corners have accumulated a lot of wealth and then the different avenues in which they choose to give back. I think that's gonna very interesting.

Absolutely, absolutely. I gave my pastor the other day the book, thank god for bitcoin. So we'll see if that that works. The orange bill ham, we're going through those conversations now. But you know, on a local community level, i'm working to orange fill my church and help them accept bitcoin you know as tides and help them understand how I can be beneficial. Um you know so we'll see we'll see what happens.

I mean, I was talking with another big point of the other day who is saying that he just found out that his church has been holding millions of dollars in cash for the last since twenty twenty to save up for a new church plant a new building that there they're wanting to expand into and um you know after finding that out, it's just it's heartbreaking know because they they believe that they're doing you know what's best for their congregation, for their people. And I would view that as a lack of stewardship of the resources. And it's just simply that education, not knowing how our financial system works and they've missed out on you know hundreds and hundreds of percent in gains. And whatever I is, they wanted to use boyband and cash that's could be preventing them from expanding the kingdom. So uh, you know i'm trying to do my part on the local level and and help our clients do the same.

Yeah that's that's really noble work. And for Better or worse, that I understand where the church comes from with this perspective. And I do find that a lot of there's this disdain for money and I get IT because what is a profit man to gain the whole world and forfeit has sold.

But at the same time, I I do find it's prudent to understand how money works and like how to optimize. And I think that's something that's lacking with a lot within a lot of churches. And i've often seen scripture misquoted where they take the verse out of first timidity that says the love of money is the root of all evil.

And it's misquoted as money is the root of all evil. And so there's, is this really a racist ess to anything financial, as I got this forbidden topic that just shouldn't be discussed at all. And I think that's totally the wrong approach.

And and holding millions in cash on the church baLance sheet is a prime example of this. Like a lot more good could have been done had they've been prudent and and taken the time to study bitcoin, study financial markets and figure out a Better place to be organized. That capital .

hundred percent. And she's talking about money more than anything else. So that means that we should be talking about money as well. You know, jesus was the greatest teacher ever.

And so of course, as parables know, maybe they just weren't solely be speaking to money, but and they could have many meanings, but he spoke on money specifically because of how the level of competition, I would say, for our heart, that IT is coming in after and against god doesn't mean it's evil. Just have to be aware of keep IT in its place in our heart and we shouldn't avoid IT, if you will. But i've had many of those same conversations as well. Or people feel like Christian should be poor, which is totally misguided IT as well. But that's maybe the conversation for a different day.

Yeah absolutely. But I think you're write it's I think the numbers like forty percent of jesus parables use money as some sort of metaphor to articulate a greater point so clearly it's something that's deeply and grain into the psych and core of each human is this understanding of money. And so the fact that jesus uses that is the base for for a lot of his teachings and I think is very telling.

Um I want to pave IT the end of this conversation here to more of an near term view. So the fed just started cutting rates. They go by fifty basis points, I think is about two weeks ago now.

And you and I were going to in the same boat when we thought was going to be a twenty five basis point cut in the ended up doing fifty. Do you think the this fact that power did fifty does that concern at all? Do you think we're headed towards a recession? And maybe powers just trying to get out in front with a large c cut.

you know IT could could be um we take a long term approach with everything that we do. Um you know I think that they did a fifty fifty basis point cut could be a bad sign up for stocks in the short term. But as we know, after six months to a year of time, the global liquidity will take and and they will not let things collapse.

You know, I think a big differentiation that a lot of people at at least outside of the finance world have been made is asset. Asset markets really are a sign of the economy because of the QE world that we live in. You know, when they decided to, you know, start pumping new money into the system, you know though a lot of that new liquidity goes into assets.

And so even though you know, you know, poverty is increasing, you know, we have more people who you know can afford a thousand dollar bill or even more credit or debt than ever. That is a subsection of the population that is being essentially oppressed, if you will buy our financial system. And so their costs are going up and their economy looks really bad.

But you know, then we look at the the wealthy side of society and they benefit significantly, you know, from this propping up of asset markets. And so you know, I think I could spell an negativity in the short term for stocks. But as we know in the long term, i'll print to pop IT up, pop IT up.

And so we just need to make sure that we take advantage of any downturns in the short term so that when things do you start to take back off, know our wealth is outgrowing monetary inflation. Because at the end of the day, like the last numbers that I saw, I think where global equities ity is increased by like twelve or global global money supplies increased by top point seven percent per year since like the seventies and then the us. Money supplies increased by nine percent per year, something like that.

And so you know, you can afford to sit on the sidelines and worry about a short term market crash, recession. You all the stuff you need to make sure that you own appreciating assets, they're going to have benefit from the money printer when IT when IT turns on. And we've seen IT now turning on um so whether or not that happens comes to flush the next six months to a year. I'm not so worry about IT will get an opportunity to stack cheap sats if if bitcoin ins affected by IT, who knows if IT will be or not um but yeah, I don't so so worry about what's going to have in the short term.

Yeah, I think that's the right approach to take. And recession, obviously a big scary word or whatever. But recession is bullish for access because we know they are going to explain the money supply in response.

That's what they're always done. So are they going to keep doing? And the degree of which they do that is going to continue to grow.

And I think a really interesting and unfortunate dynamic of inflation is that the the actual quality of life of humans can be going down, but the quantifiable metrics we measure, the health of the economy can be going up, right? Because, as know, the stock mark can be coming up because the currency is is losing value. But that doesn't mean economies in a good spot, right?

People like he said, y're credit or debt, working multiple jobs, living paycheck to paycheck, like h you know, unemployment rate can be low. Well, perhaps are working music job is really able to get by, right, the stock market high, but that doesn't necessarily mean the economy is doing well. GDP could be rising, but again, it's just the actual dollar, the unit we're measuring.

The economic health is losing value. We see this a lot with the semantic games that to buy administration plays. When IT comes to inflation, they say inflation is going down.

Technically, yes, they're right, but Prices are going up. So maybe the inflation, you know, two point seven percent A C P I this past month versus IT was two point nine percent. Well, gods still got two point seven percent 7 per。 So they can say inflations going down make a seem like things are great, but Prices are still going up.

The actual what everyday person that is still in a much worse economic position. So I think that the way one of the just most destructive things about inflation is that a kind of masks the the actual data and really manipulates and they can almost cn out people and and gas like them. And the thinking the economy is doing well when it's anybody who's actually living working a blue color job, lower income, they can feel that it's not the case.

Hundred percent, man. I mean, it's totally misguided to look at CPI and judge inflation based off of that. I believe, you know, by definition, CPI and aggregate of Price inflation over in the entire us. And a specific basket of goods that is ultimately chosen by the government.

So they're going to manipulate what's included in the basket of goods, and they're going to manipulate to see bye numbers to make sure that tells the story that they wanted tell that they can cover up the monetary inflation that have been on the back end. So that's what really, you know, we could go into that even if you wanted IT of know financial advisors using CPI as kind of their hurdle rate for retirement planning. Or as you know, you really need to use the hurdle rate of the monetary inflation to understand if your clients is wealth is actually growing or not.

And so I think it's going to cause a bunch of issues in twenty thirty years for people who may be retiring soon or even people who are currently accumulating access for a hopeful future retirement. Um to view inflation that way um because it's it's totally manipulated. It's a scheme um and I wish more people were aware of that for sure.

Yeah that's a great point. I I hadn't really thought too much about that, but the financial advisors yeah okay, we're going to quote, quote, adjust for inflation, but they're using CPI, which we know that is super flaw because of the actual gid center in that that basket are are constantly changing.

So yeah, I mean, I I could foresee a lot of sort of baby boomers, jane was getting burned over the next, next couple decades where they thought their retirement plane was good or yeah you know what was adjusted for inflation? How did this happen and then they're totally just burned in real terms. That's this can be very sad to see IT, but I am sure .

it's going to happen hundred percent and yeah, believe a point you wanted to get to on this and I just go into IT is know tweet recently that most financial advisers are overweight once for a long term retirement um and IT is sad to see because of this exactly you know they think oh, my financial advice are prepared me for inflation but that financial adviser just doesn't understand our financial system.

I mean, our money supply grows exponentially by definition. And so what does that mean? The rate at which the money supplies growing continues to get faster and faster is compounding on itself. And so that means if monetary inflation causes Price inflation, inflation is going to continue to rise over time, you and get faster and faster. And so we're going to see much higher inflation into the future then we have seen even in the past um because of that.

And so if you're using CPI A A completely manipulated metric as your hurdle rate for clients wealth, well, the outcomes that they're going to achieve are going to be way off you know um because their personal Price inflation is not CPI. Even if we just say let's say CPI is true for maybe somebody live in in you know kansas who has a below cost of living um and maybe CPI is right accurate for them. Most people who are working with financial advisers are living in kas, living a low cost of living lifestyle, buying the cheapest goods, lowest quality food, you know whatever IT b that is factor in the CPI.

So their personal Price inflation is going to be much higher than CPI because they're living in the high costs of living area. They have significant you know there's spending on things that you know the the highest quality food or the the more valuable items that they want to spend on. And it's just going to cause a big issues, you know, over a ten, twenty, thirty year time frame.

I mean, this whole QE world that we live in really just started in two thousand and eight. So most financial planners or finance services say this time isn't different. But when you just look at how our system Operates, IT is different and IT will be different into the future .

because of that. Yeah I think probably the most egregious area where we're going to see the financial advisers fail is through the state pensions, right? A lot of people, public workers, police officers, teachers, firefighters and set a they feel super confident because, well, maybe their father and grandfather retired off the pension and they've done great, right? But like he said, everything sort of change after two thousand and eight.

And I i've really empathize with people that are are dependent on these government run funds to to manage their their retirement and secure their welcome into the future. I mean, it's bad enough if you have just a fear, financial advice or but I know some of these pensions are just horribly mismanaged. I'm in north CarOlina and a couple years ago, they basically piped into longer duration bonds when rate throughout less one percent.

Just a greg's ous management of fun. So I definitely if you're listening to this and you're dependent on a public pension for for retirement, I would definitely recommend sort of either reaching out to you match or or you just are setting bit you got to do something else because to be rely on the state for your retirement. But with that, we do have to strapped up here. Where can we send the audience to learn more about what you're doing and and keep up with you? And in strong wealth advisers.

absolutely. Our our website is strong wealth that net. You can learn more just about what we do for clients, the services that we offer and learn more about our company there. Uh or if you want to follow me on social m at h demo on twitter, well I call a twitter still I probably always call a twitter um at twitter or on twitter on instagram at miss 蒂 莫。