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Speaker 1: Welcome to another edition of the Chicks on the Right podcast.

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We are here with Zach Abraham, who is the chief

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investment officer for Boer Capital and Financial Guy Extraordinary. This week,

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I have an assignment from my fifteen year old daughter.

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She is nothing like me, dak Like when I was fifteen,

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I was thinking about blue eyeshadow and Duran, Duran and

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like all things nineteen eighty six. You know, my daughter.

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My daughter is asking me the other day. She was like, Mom,

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I have this friend of mine, her friend Emma, is

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already investing. She has like ten thousand dollars in an ira.

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She was telling her because she does the stock market stuff,

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and she was like, I want to do this too.

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I'm really interested in it. I want to learn how

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to play the stock market. How can we do this?

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And I was like okay. And she already has a

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checking account and she has a savings account and so

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like when she gets checked her birthday and stuff like that,

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I always tell her. I'm like, try to pay yourself

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first and put like ten to fifteen percent of whatever

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you get, you know, for your birthdays, put it into

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savings and then whatever. I don't care what you do

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with the rest, but try to save a little bit

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each time you get money from whoever or whatever.

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Speaker 2: So she does that.

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Speaker 1: So she has her little chase, you know, checking cout.

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She's got her little app, and she does all of

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her things, and she learns how to manage money. And

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no one ever has to balance like a checkbook anymore.

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But at least that's how kids are learning how to

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manage their money.

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Speaker 3: Right.

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Speaker 1: But when it comes to this stock stuff, I'm not

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very well versed on stock, like I use you to

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help me with that kind of stuff, right, right, But

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Gwen is very interested. She's like, I want to know

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how this works. I want to see it. I want

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to do it myself. It's kind of like a game,

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and you know, kids are really into games. So Fidelity

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has a little I guess it's like a it's like

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an app for teens thirteen to seventeen. I believe it's

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where it's like a youth account and it's kind of

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like a mini brokerage account, and that it gives them

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training wheels and so teens get to invest real money

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in stock ets, fidelity and stuff like that. But I

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think parents have to have an account themselves and then

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they can set their teams up. I'm curious to know,

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like what you think about all of this, if there

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are alternatives to that, if what if parents don't have fidelity,

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or there are there other things that they can use,

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Like this is what she wants to know. I'm asking

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all these questions for her. Yeah, on her best.

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Speaker 3: So I love it. I love it.

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Speaker 4: So first of all, funny, I've got a fifteen year

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old working in the office right now.

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Speaker 3: He's a he's a kid of one of our friends.

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Speaker 4: Yeah, that's got an interest in finance, and I I, well,

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I don't think it's a surprise to most people that

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I love what I do, that I'm.

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Speaker 3: Getting into it.

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Speaker 4: But I also love explaining it to kids, and I

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love explaining it to us, like because it's not.

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Speaker 3: You know I and I totally get it.

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Speaker 4: I think it's one of those things that's really intimidating

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from the outside looking in, like, oh, I don't know

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how it works.

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Speaker 3: And the one thing I.

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Speaker 2: Tell people all the time, yeah.

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Speaker 4: Well, and part of it is part of it is

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the ecosystem built around it, which is so much of that.

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And now this will sound like I'm selling against myself

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because I do this for a living, but so much

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of it, I am convinced is vernacular that's been put

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in place to make Wall Street people sound smart and

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to make the average person sound like they, you know,

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think that they've got no idea what they're doing right, right,

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And I always tell my clients, I go, you understand

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this more than you think you do.

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Speaker 3: You're just not up on the words and the catch phrases.

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Speaker 1: Right. It's like a different end of that makes me

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feel a little bit better, but it's still it's scary,

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Like it's really scary. There's a lot of suff You're like,

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I don't know what that isn't like I don't this fun?

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That fun like that kind of account like it's it

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is hard to navigate, and like where to get started?

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How do you get started on it? What should you invet?

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I mean that's why obviously people need somebody like you,

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But I think it's really important for kids to at

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least have that education.

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Speaker 4: Yeah, yes, so right out of the gate, now we've

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looked there's a bunch of different tools out there. The

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one that I have found that I think has been

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the best. Fidelity's got a good way to do it.

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But the one that was even easier for younger kids.

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Was this green Light that my wife and I use.

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Speaker 1: Yeah, we'd use green Light for a while with Gwen.

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Speaker 4: Yeah yeah, And it's really easy to move money back

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and forth. I also like their trading platform because you

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don't have to put a quote unquote enough money, because

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the trading platform lets you buy partial shares. Okay, So like,

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let's say the kids want to buy a share of

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you know, let's say the kids have one hundred and

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fifty bucks in their account, right, right, and they want

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to buy a share of Google. Okay, Well, Google's trading

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at one hundred and eighty right, so that'd be you know,

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so what it allows them to do.

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Speaker 3: They can buy twenty dollars worth of Google stuff.

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Speaker 2: Okay.

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Speaker 4: So I really love that my kids use that. My

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youngest is the most interested in it. He's the one

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that will most often bring me a portfolio and go, hey, dad,

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let's move some things around with picture stock.

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Speaker 2: Shay is Zach.

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Speaker 1: I had no idea that they had an investment part

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of it. I used Dream simply as like a checking

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account before I moved her over in Chase. I had

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no idea. So this is news to me. I'm an idiot,

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so this is news to me and maybe news to

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other people. Maybe I'm not the only idiot. So it

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so it has an investment part of it that you

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can actually give kids like two hundred bucks and stay here,

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go play in the market.

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Speaker 4: Yeah, and then and then you can do stuff. So

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we've looked at the kids a couple of times been like, okay,

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now you've made some we've made some nice returns here, right,

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so what are we going to do? And they're like, oh, well,

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I want to buy this or you know, and just

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teaching them like okay, you know, letting them watch that

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account grow and be like, oh now I started with fifty,

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but now there's fifty and I can go buy something.

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And the other thing it does is it opens up

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conversations and it helps them be And it's such a

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strange thing.

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Speaker 3: Because we live in the Internet world where we've.

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Speaker 4: Got all of this right, We've got access to more

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information than we've ever had and human beings I've ever had, right,

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and yet financial literacy, I think it's just as bad,

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if not the worst, as I've ever seen it, especially

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among young kids, right, Yeah, and they all are aware

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of nicer things like, for instance, when I was a kid,

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I didn't know what a my Bock Mercedes was.

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Speaker 3: Kids today do, right, So.

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Speaker 4: There's an awareness of more expensive things, but the idea

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of what they can afford, how that works, it's just

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as alien to them as it's ever been. Right, And

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the one thing I love about walking through stocks and

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explaining it to the kids is I think it provides

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a really good understanding of just the way money works.

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For instance, Dad, what kind of stocks are you investing in?

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And explaining them the difference between chasing what is popular today,

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which is what most people are doing, and being more

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of a long term fundamentalist fundamental investor, which is looking

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to buy things at values that are less than what.

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Speaker 3: We believe the intrinsic value of that investment to be.

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Speaker 4: Warren Buffett's got a great line, which I think it's

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a miss way too often investing which is the number

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one most important factor that will decide the success or

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failure of an investment, or how much the success or

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failure of an investment. There's nothing more important than what

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price you paid, right, And so keeping that idea kind.

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Speaker 3: Of a weird thing.

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Speaker 4: We all sit there and go really and then you

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start thinking about it. Yes, right, the less you pay

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for any investment, that's where the win is made. It's

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not when you sell it, it's when you buy it, right, Yeah,

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and so and so getting them to understand that, getting

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them to understand the way that money floats around. Why

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is this stock at this price? And then do it, well,

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this is how much profit it made. You know, here's

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interest rates, and you know, just showing them how these

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things all work. And you don't need to be a

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One thing I've told a bunch of my other friends

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is like, hey, you don't need to be an expert

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to teach your kid. You guys can go down this

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path together, right, and learn it together and kind of

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you know, work your way through it and figure it

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out and ask those questions.

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Speaker 3: And people are like, well, what should I let them by?

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Speaker 4: And I'm like, you know what, Honestly, some of the

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best ways to learn how to do this. Don't be

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too worried about them winning or losing. Some of the

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best ways to teach people, it's like anything else. The

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best way to get somebody how to manage money is

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we have a joke around here. Thank god, I've never

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done it with a client account. But I you know,

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I don't think that you're a good money manager until

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you've blown an account up, right.

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Speaker 1: I think it takes more than that athlete until you've failed,

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or good anything until you've fallen on your face really right?

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Speaker 3: Yeah? Right? And you know it's it. And it's funny

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because you learn over time.

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Speaker 4: There's so many little things where they'll be like, well

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what about that, And I'm like, oh no, no, we're

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not going to do that, and they're like why and

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I'm going, well, because that's bit me before, right, Can.

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Speaker 1: I learn because I learned by falling down?

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Speaker 2: Exactly?

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Speaker 3: Right?

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Speaker 1: Do you think already your kids interested in finance because

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of this stuff or do you think just intrinsically they're

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like maybe one or two of them are interested just

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because dad does it.

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Speaker 4: I think that I think that the one my youngest

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is interesting, he got it. Yeah, he's got an interest

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in it. I think my middle yeah, he does, and

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he's just he's just kind of he's kind of bent

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that way. I you know, we'll see the way it

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plays out. Like early on, we didn't have yeah, but

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we didn't have act like there was you know, there

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was no way for me to trade stocks or do

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anything like that.

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Speaker 3: I mean, I remember, I.

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Speaker 4: Remember, I think I shorted my first stock at like

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seventeen years old.

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Speaker 1: Oh my gosh. See that's still like I wouldn't have known.

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I wouldn't at seventeen. I didn't care about any of

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that stuff.

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Speaker 2: I had no.

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Speaker 3: But I but my dad.

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Speaker 4: So I've grown up in the business. Like literally, yeah,

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my dad had a brokerage firm. I've got pictures of

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me being like in a crib in a brokerage firm.

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Speaker 1: Oh gosh, yeah.

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Speaker 3: So yeah, and.

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Speaker 4: And but it but it was always there was something about,

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especially value investing, and I can't really explain why, but

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there was something as a kid that was so intriguing

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to me about the idea of buying something that everybody

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else is thrown away and doesn't think it's worth anything,

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and that you know that it is, and then turning

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back around later and going, see we were you know,

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there was just something that was so exciting about that.

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Speaker 3: I don't know why.

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Speaker 4: It sounds weird to say it's exciting, but no, I

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mean it's really cool.

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Speaker 1: But you're either going to do it and you were

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going to grab onto it and you're going to do

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it yourself, or you're going to go the complete op

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the direction and become like an underwater basket weaver or something.

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Speaker 4: Right, which, by the way, I'm sure you can get

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a degree for these days.

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Speaker 3: Yea, absolutely you can.

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Speaker 4: Yeah, you can spend two hundred and fifty grand learning

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how to be an underwater basket we Yeah.

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Speaker 1: It's probably like lesbian underwater basket.

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Speaker 4: Yeah, you know the other the other thing that and this.

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This sounds kind of crazy, but I'm probably gonna do

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with my kids too, And I think it's another great

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lesson I would have if my kids are running a

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trading account, I would have them buy a little bit.

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Speaker 3: Of crypto currency, a little bit of crypto.

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Speaker 1: Yeah, that's what a lot of like this fidelities is

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that they don't do, which I think is interesting.

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Speaker 4: Yeah, and here's why I think the vast majority of

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things in the crypto world.

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Speaker 3: And I always get pushed.

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Speaker 4: Back when I say this, I don't really understand why,

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but I think the vast majority of the things in

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the crypto world are completely worthless.

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Speaker 3: Okay, okay, And.

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Speaker 4: This sounds bizarre, but one of the best ways to

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teach somebody about investing and about money is to have

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them lose it. Yeah, right, And I think that that

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is such an important thing for them to see something

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lose substantial value and realize this isn't just a game.

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Speaker 1: And you think that generation, that generation thinks that crypto

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is like the shiny object right now.

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Speaker 3: Oh and look, I know people.

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Speaker 4: I was listening to a previously what a guy that's

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considered very well respected in the industry and very conservative.

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I heard an interview recently where he was saying that

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people should own twenty five to forty percent of their

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portfolio crypto. Oh, I'm got no, and I and I'm

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watching him say this, and I'm like, you're out of

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your mind.

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Speaker 3: You're out of your mind. And here's why.

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Speaker 4: Here's why you don't know what it is. Right, this

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is their retirement portfolio.

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Speaker 3: You can't.

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Speaker 4: This isn't black box time, This isn't hey, let's throw

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three hundred grand in this and see if it pans out.

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Speaker 1: Oh my right god, yeah no.

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Speaker 4: And there's and look, the problem is that so many

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people are anesthetized to the risks and crypto, and the

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one way they justify it is they go, well, it's

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gone up, and you're like, yeah, That's what people were

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saying about tulips in sixteen hundred until they quit going

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up right the other people, and I've had that conversation,

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they go, tulips, what are you talking about? And You're like, dude, hey,

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do yourself favor and go home and read about tulipmania.

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Speaker 3: Hey, this is not a new thing that you're doing. Right,

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There is nothing new under the sun.

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Speaker 4: One of my favorite Bible verses, right, Solomon talking about

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there is nothing new under the sun.

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Speaker 3: You have not invented anything. Right. We have seen it before.

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Speaker 4: It's happened with tulips, It's happened with sardines, It's happened

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with all kinds of weird stuff.

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Speaker 3: Right.

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Speaker 4: When I was a kid coming up, it wasn't crypto,

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but it was dot com. Any company that ipoed with

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the name dot com and their title, the ipo up

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on one hundred and fifty to two hundred percent every

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single time, first day of action, sometimes more right, everybody thought, hey,

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we found a way of investing where you can't lose. Then,

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minute you hear that, grab your chips and head for

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the door. Right, And just teaching the kids that right,

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understanding that money is a fluid thing, and you're gonna

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make it, you're gonna lose it at times. That's the game, right,

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and to not be afraid of that, but to be

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aware of it, and then also trying to keep them

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in that mindset of and you see this everywhere today.

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What do you make Now? I make X amount of dollars? Okay,

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why does your life look like you make twenty percent

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more than that?

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Speaker 3: Right? Your life should look ideally, it should look.

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Speaker 4: Like you make thirty or forty percent of what you make, right, buffer.

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Speaker 3: Quality of life? Yeah, all those kinds of things.

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Speaker 4: And you know, I just think that one of the

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best ways to teach your kids that is through you know,

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running through that investing. And then when really big shocks happen,

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like coronavirus or like a great recession or whatever, the

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kids have something you know, palatable, They've got something tangible

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that they can actually see, and they're like, wow, people

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have lost you know what I mean.

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Speaker 3: I think it helps them put context to Yeah.

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Speaker 1: I just think in general, like I know that Gwen,

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my daughter, I know that the youngest are older ones,

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are older ones, and are younger youngest is they're just

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way smarter than we.

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Speaker 2: Ever were, which is a good thing. And I think

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that's big boiames.

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Speaker 1: Because a lot of times we hear that this generation

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is dumb or they're they're dumbed down, or they're being

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dumb down because they're not. I think that they actually

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are way more astute than we ever were, which is

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a good thing, because they do have some of these

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fo and I hope that they're using them in the

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best way possible.

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Speaker 2: Parents can use these tools like green light. I'm going

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to start using them. I think that one is.

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Speaker 1: Probably the one that we're going to use to do

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the investing stuff to try to navigate those waters with her,

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because I remember the interface with the checking and all that,

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and I like that. I like that the greenlight, and

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so we'll try that and see what happens and she

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can play around a little bit in that.

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Speaker 2: I think that's great.

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Speaker 4: And it gives them little cards, right, like little debit

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cards that they can actually use places and do things. Yes,

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and so it's just that, you know, it's it's that practical.

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You know, Now we're mixing and balancing a checkbook and

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balancing a debit card and payments with investing, right and

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just like anything else, the more you see those things interact,

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the more you see those those things whirling around and

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working together, the better idea it's going to give you

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of the world around you.

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Speaker 3: And you know, you got all.

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Speaker 4: Like I said, the kids are smarter these days. Yeah,

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But at the same time, on the financial side of it,

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like I said, so much of it is geared toward

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the material side of money as opposed to the working

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side of it. And you know, teaching them to understand.

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I have these conversations with my daughter's friends. My daughter's fifteen,

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and I have my conversations with her and her friends

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all the time where I'm like, guys, it's not just

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about what you can buy, right, It's about owning your

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assets them not owning you, right.

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Speaker 3: And you know, just all these things that we learn,

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and we learn either because we.

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Speaker 4: Listen to somebody that's a really good example, or we

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learn the old fashioned way because we do it wrong.

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Speaker 2: And it's usually the old fast it's usually the old

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fashion way. I mean, it's real, and it's gonna that will.

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Speaker 1: Be learned probably in the next five to fifteen years

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when they learn it.

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Speaker 3: The old fact.

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Speaker 1: Yes, Now, if you could actually do seminars with kids

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I think that would be amazing. You probably should think

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about doing that, Zach, But I know you have one

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coming up on July twenty fourth with adults.

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Speaker 2: Yes, can your kids if they wanted to.

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Speaker 3: Yeah. Yeah.

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Speaker 4: So we're doing our same as the road shows we

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do before, but this one we're really tailoring it toward

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the environment we're living in, talking about like, you know,

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how urgently we really need There's another.

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Speaker 3: One we saw today. Okay.

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Speaker 4: So it's the what we call the Warren Buffett valuation Indicator,

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and Warren Buffett has always looked at the value of

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the US stock market as a percentage of the amount

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of economic activity that we put out. Okay, that metric

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just the other day, I believe it was just yesterday,

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hit a new high, a new all time high. And again,

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it doesn't say that there's panic you need to sell

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everything and get out. What it does mean, though, is

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the composition of the portfolios that have worked from US

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the last fifteen years. Like this year, you know, the

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US is one of the worst performing markets in the world.

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And one of the reasons that we're having a great

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year is because we're internationally diversified and most people are not.

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Speaker 3: At all they're not at all. They're all loaded up.

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So we're going to walk through that.

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Speaker 4: We're going to walk through the opportunities that we see

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in dollar alternatives like precious metals, the opportunities that we

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see in international markets, lifetime hype opportunities, and international markets

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because they've never been cheaper in comparison to US stocks.

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So just walking through that, showing everybody, hey, here's how

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we do things. Here's how we manage risk. This is

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how we you know, try to prevent against the big losses.

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But also the world has just changed and if history

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is prologue, this is what we need to be looking

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at and these are the kind of changes that we

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need to make in the portfolios to be successful going forward.

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Speaker 3: So that's a lot of good stuff.

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Speaker 2: And that's July twenty fourth at three thirty pacific. Right.

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You got to where can they go sign up for that?

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Speaker 4: Wellworkcapitalmanagement dot Com. We'll have a dialogue box that'll pop up.

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You can sign up for it. There's no cost, there's

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no obligation. We're not calling you on Saturday afternoons trying

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to and truthfully, one of the reasons we do this

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is because it's an interface people can get kind of

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like a halfway into the firm and understand how we

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do things, how we think without having to make a

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commitment financially right. And the reason we like to do

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that is this is a partnership. And in order to

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know if a partnership is going to work, we got

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to feel each other out.

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Speaker 3: We got to know, you know, how each other thinks.

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And I think this is a great opportunity for day.

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Speaker 2: Don't have a copy day? Was that there?

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Speaker 3: We go?

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Speaker 1: Yeah, curiously, just check out you guys, exactly check out

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you guys.

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Speaker 2: Definitely do that exactly.

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Speaker 3: You bet, you bet, thank you.

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Speaker 4: It was always Investment Advisory services offered through TREK Financial

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00:19:27,039 --> 00:19:29,839
loc and SEC Registered Investment advisor. The opinions expressed in

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00:19:29,839 --> 00:19:32,000
this programmer for general informational purposes only and are not

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00:19:32,039 --> 00:19:34,720
intended to provide specific advice or recommendations for any individual

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00:19:34,799 --> 00:19:37,119
or on any specific security. Any references to performance of

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security so it thought to be materially accurate, and actual

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performance may different.

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Speaker 3: Investments involved risk and or not guaranteed. Past performance doesn't

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guarantee future results. Check twenty four three zero