 What's the game ladies and boys and girls and children ladies you're a noun tuned into the Prince of Investment coming to you guys and girls live All the way for the beautiful city and state of Denver, Colorado via the also beautiful city state of Haluulu, Hawaii If you haven't done so already ladies and gentlemen, please go ahead and make sure you hit that like to try out coming to share button And as always I don't have a lot of time and I definitely you guys and girls don't have a lot of time So we're gonna jump straight into it As you can see in the topic today bad market you see the markets all over the place Especially the last couple of months, right? Has many people thinking of what should I do now you law into that portfolio if you got a bullish portfolio You know you're watching your portfolio go down and you're seeing those management fees being paid in some cases If you have management fees, well, even if you own ETS mutual funds You have some type of management fees, right and you're wondering man. What's going on? What's happening? What can I do so without further ado? I brought in a great Friend of mine that I met here. He's one of the investopedia top 100 2023 top financial advisors By investopedia met him in Huntington Beach. We was at the cocktail hour and We have Colin Overwick he is the CEO and founders 30 years old to see you and founder Of his own firm. He has called advice and we're glad to have him home today So we're gonna talk about some good stuff. So y'all tune in, you know He's a certified financial planner as well. So you're definitely gonna get some good stuff today. So what I further do Kyle, how's it going today, sir? Hey, better than I deserve Prince. It's great to be here. Thanks for having me Definitely definitely glad how are you at right now? You're in Detroit or in California? So if you hit me up any time of the last four years would have been in Los Angeles But recently moved back home to the home state of Michigan just outside of Detroit We are welcoming our first baby here November 19. So right around the corner We had to get some support from mom and dad. You know how it is Nice. Nice, you know, that's a big jump from California to Detroit. I would say that, you know Especially this time of year man And it's beautiful, but I mean I got my sweatshirt on sweatpants. I mean, it's it's cold out there Okay, so Colin, you know, tell people about you people who maybe have never heard you or never seen you tell us more about you Who are you? Yeah, so I study study at Michigan State University Finance graduated started working at the big broker dealers managing millions of dollars for hundreds of clients and Just really wanted to be able to kind of serve a demographic that maybe wasn't as Prevalent in just the traditional wealth management space. I mean the firm I worked for had a lot of times million dollar up Minimums so really looking for that more retiree client and a lot of my friends Maybe had high incomes didn't know how to save build wealth So I wanted to be able to pivot and and serve that demographic that Represented myself a little bit more getting married starting businesses lots of fun things lots of complexities going on But really wasn't maybe didn't have the assets yet So start launch my own RA after working in the broker dealer space for four or five years in 2018 my firm advise wealth management is a hundred percent virtual so I can be in Michigan I can be in Los Angeles. I have clients across the country and we're hopping on zooms And I just have the the rule here that if we meet in person, we're having fun We're not talking about business. We save business for the zoom calls Nice, that's that's pretty good. So people out there who don't know what an RA is. What is the RA? Yeah, so RA is just a fancy acronym for registered investment advisory firm It's just a type of firm that maybe Different from maybe broker dealers it really just kind of focuses mainly on giving advice We don't have any products to offer. So I don't sell any products. I don't receive any commissions Which in some cases, you know what I'm still making recommendations that people go out and get product people need their life insurance They need disability insurance in many cases, but I'm just not being the one compensated for that And the idea is that I'm gonna have less conflicts of interest and I'm just out here trying to give advice to folks Okay, do you manage any assets, you know itself in your RA? I do manage assets Probably about half my clients have assets with me The other half either have money kind of locked up in that 401k or some type of employer Sponsored plan. So then the other half of clients just simply pay flat fees Okay. Now I have a question for you, right? You know, you mentioned portfolios. You got your clients. I don't know your sentiment on the market But you've seen these last couple months, you know from January to June. You're like, okay Things are looking better. I'm not a 20-22. You're like, okay Things are looking better because it was these big the end of the year beginning years He's big recession talks, but the market was saying otherwise and all of a sudden not about that summertime You know, I thought it was gonna be a warm summer, but it started to chill off The market has been going down, especially very choppy sideways up one day down one day What's your feeling about this current market? Friends, it's difficult for investors out there, man I mean the last two years has been really rough and honestly We could even extend it to the last three because now we can bring in the 30% drop that we experienced with COVID and Really, it's just been a roller coaster ever since we're really down harsh and then we're up harsh and the last year and a half It's just been kind of flat like you mentioned we Started started off the year great, which is Really odd just in and of itself because we had CEOs, you know, like Jamie Diamond of JP Morgan I mean largest bank in the world or at least one of them saying that we are headed for a recession And we have CEOs like Elon Musk agreeing we are headed for a recession And that is kind of how we started 2023 with that just sentiment in the air And what has happened is we've just experienced this kind of Melt upward in the market where everyone is just like looking at each other going alright Who's gonna blink first? When is this shoe gonna drop? But the labor market has just been so darn supportive of this economy people are keeping their jobs they're still spending and Maybe this is just a little bit of that tailwind of what we're experienced with some of that COVID money Where we're helicoptering money and a federal government was you know we saw that the the burr of the printing machine all the memes there with the Federal Reserve and Maybe that's what's kind of hanging on but to your point the last couple months It sounds like maybe it's starting to come to fruition. We're seeing some other markets starting to experience that already so it's kind of one of those times to buckle up the seat belt and Maybe get ready for some additional volatility heading into the rest of the year and probably early next year as well Okay, so right now if you were designing a portfolio for the next six months What do you got to say if you're you're gonna be bullish you're gonna be bears you're gonna sit on the sidelines. What are you doing, Colin? Yeah, so That's the hardest timeline to be investing right when I'm usually giving investment advice I actually kind of refer to it as Stare steps and I try to create like this visual of climbing up the stairs and It's based on time horizons and the longer your time horizon the more return You can demand on your money and the reason for that is is because if you invest in the stock market And this is good for your listeners to hear is if you invest in the stock market on a day-to-day basis You got like a 51% call it a 50% chance of winning. It's a coin flip You might as well go down to Vegas people that really think of investing like gambling and when you're investing on a day-to-day basis I kind of agree. It is like gambling, but if you expand that to a one year I don't care if you're talking 1920s or the 30s if one just one year for the last hundred years You now have about a 70% chance of being positive in the stock market And if you expand that to a five-year period any five-year period for the last hundred years You're talking like a 95% chance of success success in the stock market of having more money Then you started with and Prince you can kind of see where I'm going with us the longer your time horizon The higher probability you have of success all the way until you get to a point where you have literally never lost money in The stock market assuming that you stayed Diversified, you know, you're not just embedding all of your assets on one company So to bring this all home to answer your question when I'm kind of breaking this down into time horizons I'm going all right. I got my first bucket my one to two year bucket Maybe my three to ten maybe three to eight year bucket and then and then I got my ten year plus money That's my third stair step. That's where I can go demand the most return on my capital We're focusing on the short term I'm telling you what right now cash and cash equivalents money market accounts treasury bonds It's not a terrible place to be. I mean, we're talking like five five and a half percent We haven't seen rates like this at a long time and and it feels good to get some return on my cash That's where I'm telling my clients to go is get those high yield savings get those treasury bonds and say Thank you for the free five percent Okay, yeah, so and that's the other side of it, right people love to talk about these interest rates You know every time you turn around Jerome Powell is coming out saying hey inflation is bad and blah blah Do you have the scariest story of Paul Volcker back in the 80s? What he did the interest rates coming out of coming out of 70s going into the 80s pretty much just ran us into a recession But people who come to scare what are the positives of a high interest rates of society, you know Everybody's saying man. Look at these mortgages mortgage mortgages are going up. You're seeing stock market is going down Things like that. What are some positives that you could think of of having taken advantage of these high interest rates Well, yeah, that's that's kind of the first one is that finally your cash is worth something and And it's it's tough for people out there because not everyone sees it that way You know, maybe you and I have some clients that have big piles of cash and like well I don't know what to do with it. It's my emergency fund and we're like, well put it in cash You're getting five five and a half percent. There's nothing wrong with that. That's actually pretty darn good But if you're on the other side of the fence saying I want to buy a home. I need to buy a car I need to get a loan Well, now you're really getting hurt out there and you're paying maybe six seven eight nine percent on some of these Rates and gosh that home that you thought that you were gonna afford that you were saving up for so Diligently like every advisor told you to do well shoot now the mortgage isn't affordable and you're out of the loop So it just really is a tough environment depending on which side of the fence you're on But the positives is definitely the yield. You're getting something for your cash You don't have to go out and watch your stock market portfolio look like a heartbeat monitor You can get a guaranteed FDIC insured 4.7 call it 5% rate of return That's definitely something to to get excited about at least in the current market That's a very good very good advice to not ask yourself this question If you're someone you was very bullish in the market, you know the market took off February You're like wow I'm getting some returns the market is back now. So you became bullish maybe a little bit too bullish now Come around, you know now we're looking at October is getting pretty cold. What do you say? Do you just say stay put would you just liquidate and run the cash? What would you do in that scenario? Well Prince we got to go back to our stair steps, man. We got to talk about when do you need the cash? If you need the cash in the next two years, we know the best decision. We can't get too risky in the stock market That's gambling Maybe we can get risky here and there I'm all about taking a couple bets here and there small percentages of the portfolio perhaps But the backbone of the portfolio the backbone of your wealth building. It's got to be based on those time horizons So even though the markets getting cold even though we're down What is it two and a half percent over the last five trading days? That's scary. That's scary stuff right there Even though that's that's happening if you don't need that money for five ten fifteen years plus What's gonna get you the best rate of return? Running for the hills and getting that five percent guaranteed which isn't necessarily guaranteed tomorrow We know interest rates can drop and then those yields are going down with it or is the stock market Well, have historically speaking evidence tells us you're probably gonna do better over a five ten fifteen year period Holding on to those equities. So we got to kind of let history guide us That's obviously no guarantee of future returns But if I'm trying to to be a betting person, I'm trying to give myself the best opportunity for growth That's what I'm telling my clients is we got to stick to those stick to our guns and stick to the plan Okay. Well now you're saying people, you know Over the last year you heard this terminology. I'm pretty sure Pretty sure you probably dealt with it in some kind of capacity People are now saying hey, it's just a perfect time and what are your thoughts and feelings on crypto currencies? Oh That's kind of like an old forgotten tale. It seems like right. Oh, it's like only two years ago It was like all the craze and now it's like oh crypto's old AI is in And it's so funny how the shiny object just continues to change and I think that's probably the bigger important lesson is that Us as humans we are designed to try to do whatever we can to better ourselves and as investors Sometimes that actually ends up being the wrong thing to do Similar to when you feel scared probably not selling probably hanging on is the best thing to do even though your gut instincts are telling you to get out and sell So crypto man To be honest with you I own a fair share less than 5% of my overall portfolio, but it is a definitely a material position It's you know a lot of the main names in Bitcoin mainly just because a lot of folks who I look up to and who I believe to be smarter than I am Are excited about that space, but I could kind of almost see I'm glad that Bitcoin and the crypto currencies They're out of the news because that kind of it feels like a lot of the the silliness is out of it And maybe crypto currencies could be started to take a little more serious Maybe we can see that market cap of Bitcoin continue to to slowly edge upward I believe there's another having process sometime next year. I'm no expert in crypto But I do believe in it to the extent that I want to at least have my I want to throw my hat in the ring and have a small position I'm talking about time. I feel as though it's like a lottery ticket. I'm like, hey, these little lottery tickets I go into the gas station. I stretch off if I win I tell everybody how smart I am and how much of a genius I am if I lose I put in a trash can and I can never happen So people that that's my philosophy because I look at it when you look at it as an investment It's like well, how can I really make it an investment? Well, I don't know What are these things are coming from who's reporting this information unregistered, you know things like that? So that's like my kind of take on about definitely want to get your take on that now College something that we always heard that was a sure for sure win over the last, you know forever You always heard your great-grandparents say this everybody always said this it wasn't into 2008 People start to say a little different people always said hey get a runner property, you know I think it was Fannie Mac put out that they're doing 5% down and you could get a multiple unit apartment, right? So people are getting multiple, you know duplexes apartments or whatever only 5% down But we also see that the rental market could possibly be Over saturated because one of the one of the downsides is as interest rates go up It means that mortgages going up and when mortgages go up It leaves a little bit more room for people to charge for rent. So we're sending random prices go up as well Will you look at it? There's renters market. Is it a hot market is a dry market? What do you think about that? Buy a house rent it out It's a really good question. I get this question a lot from clients whether they're Trying to find a place to diversify from just their stock and bond portfolios Or maybe they are buying a new house and are still hanging on to that old interest rate at 3% and they're like, I just can't get rid of it. It just seems like such an opportunity it's I think that that that's a tough thing to say and it's really depends on the individual because If you buy if you get a property manager a lot of your margin can be extinguished as you know And if we look at single-family homes just purely as an asset class, you know If we're thinking Bitcoin is an asset class, you know large cap US stocks as an asset class bonds are an asset Single-family homes being an asset class. Well, Nobel Prize winner Bob Schiller did a great job putting together the Schiller index for us Showing us what individual home price sales have looked like for the last 50 years And we've shown that single-family homes grow at about four and a half percent So when you're looking for a place where to go with your cash with your with your capital Do you want the stock market yielding around eight nine ten percent annualized rate of return or your single-family single-family home at four and a half? Well, that doesn't tell the whole story because maybe you're going to be receiving some additional cash flow Maybe you're positive month over month and then you're actually cash flowing on the property Maybe you have a low interest rate mortgage and you actually have a little bit of leverage there So that can kind of juice those returns a little bit It becomes a complicated Answer and a complicated question pretty quickly But I think the biggest thing that I encourage folks to think about is are they actually Diversifying here and do they also potentially want to have a part-time job? passive income I think is a very Obscured term for rental income because when you're getting a phone call at two in the morning that the toilet is flooding Or the gutters are flooding or the roof is flooding or something is breaking It doesn't feel very passive anymore Now it feels pretty active. You got to be calling Either contractors and doing that work yourself or you're hiring it out and then say goodbye to your margins and Also, you always have the the individual risk of a client not paying We've all heard those stories before where a tenant says hey, I lost my job and I'm not paying this month Well Good luck taking them to small claims court kicking them out If you're in the beautiful state of California where I've been for the last four years and having clients that have rental properties there's really really strict tenant laws and They might be able to legally stay there for two three four in some cases six months before you can actually evict them So we got to be you know and now all of a sudden if you're expecting that cash to pay the mortgage But you're not receiving that rental income anymore. You could find yourself in a really tough situation So I kind of preface that with you know Make sure that you run the numbers make sure you got a good emergency fund and you could absolutely get better returns than the market But you also are taking some additional risk So is that additional return worth it a lot of times if your markets getting you eight or nine percent you don't have to do anything and Your rental properties getting you eight or nine percent, but you have all this additional risk Gosh, was that really worth it? But if your rental can get you 13 14 15 percent Okay, well then that juice might be worth the squeeze Okay, now someone asked you the question they look back and they say well, you know Real estate seems to be a little tough right now. You know messing with the margins When you're watching for prime example, if you have to go spend You know 10 grand to go I don't know get a new roof or something like that that could knock out You just if you don't make it a hundred bucks up 200 bucks a month that knocked out five years of margin Just fixing one thing, you know, hopefully you can get some equity on the other end But if not then it's like was it really worth it. So the other thing I want to ask you people like hey You know what kind of like I remember this feeling and oh wait. Oh wait I was 24 years old felt like the end of the world was happening, you know Who's in Afghanistan Iraq? You've seen leaving brothers disappear. You saw Omen sex come to his knees. You saw four general these big household names Bank of America all these companies went into financial stress, right and People we start to look for different things was like, okay, the stock market is dead. Real estate is dead What do I do now? So I preface that was saying in 2023 People are looking for new ways in different ways What is a new avenue out there that people are not talking about that you're like, hey, you know what, you know This might be a place to look into Yeah, I guess I think when one really really exciting thing is that the ability to become an entrepreneur for almost no money very little overhead with Fabulous tools. I don't know if there's ever been a better time You know, you can hop on tiktok You can see people, you know being becoming creators that can open online stores They can start advertising and selling products drop shipping with a really really simple website that they can put together and Five ten fifteen minutes click and dragging and dropping writing things out I think it's a really exciting time for people that want to change things up. They have some spare time To get out there become an entrepreneur and that doesn't necessarily mean that you have to You know get a second mortgage on your house and you have to take this Substantial risk you could start with as little as 50 bucks a hundred bucks open your first store Start making some sales have some fun with it and do whatever you're interested in so if you become interested and I Mean a silly thing making peanut butter and jelly sandwiches. Maybe you become like The tester of all of these different peanut butters and jellies and you're selling them on your online store And you could just print your own stickers slap it on some a product and you can become the peanut butter and jelly person You know as a silly example, I think the opportunities are endless out there for someone who's a go-getter and creative Okay, now I gotta answer this question, right? You lost everything today You know now you've gone off to school and went off to the you know graduated worked at some big brokers Now you got your own firm doing your thing moving around from California to Michigan and hanging out Welcome home the new baby, you know, Mary. What if you lost everything? You're down to zero you have nothing But someone gave you 10 grand you have 10 grand nothing else. What would you do with it? Well for myself given that I have a unique skill set in this investment management space I would definitely I would definitely get back into the the financial planning and Investment management that I'm in today But if I were to do something completely different and start from scratch Just to give someone a little bit of perspective here If you invest $10,000 and say the S&P 500 you can double your money every 10 years or so So, you know 10 turns to 20 20 turns to 40 40 turns to 80 and the goal is that maybe you can have three four Doublings over your investment lifetime That's not going to make a difference in this case. So what I'm gonna do is invest in human capital I'm gonna invest my invest in myself Everyone listening here at least most folks who are working still your number one asset is your income So if you can go out and grow your income and you can get your some type of additional degree You can take a course you can do something to better your ability to earn income that is going to have Exponentially more return than just putting that money in the market So I think I'm gonna be investing in myself to either get some type of Education or some type of ability to to produce value and produce income Okay, you know, that's a that's a pretty good one, you know bet on yourself and that was one I Took that from a podcast that I was on right He asked me that question and he said man, I thought she was gonna say something about You know put it into this and it's gonna flip and turn into this and stuff like that You know, what do you think you're gonna do? So now I want to ask you this question too before we get out of here. You're 30 years old now Going back to when you was 20 years old. What would you tell yourself? What would you do? What would you tell the 20 L version about you now that you know a decade ago? Follow your curiosity and and just Continue staying curious and and whatever that burning passion is I actually have a Quote back here that says true desire in the heart for anything good is God's proof to you sent beforehand to indicate that it's already yours So if you have that burning itch that desire to do something special That's God's proof to you that you all that it's already yours You just have to go out there and do it go out there and take it That is a Denzel Washington quote. So I got to make sure I give them credit there but I'd say follow your curiosity because nothing's gonna allow you to work harder and Survive those late nights those blood sweat and tear moments if you're doing something that you love Okay, so out there now, you know people that are tuned in listen to you Maybe for the first time here in this catching a playback. What are you? How do people get more of you? How people find you? Yeah, so Probably my I mean I got the website advise wealth comm. That's 80 v I z e wealth comm Otherwise colon hit me up on Instagram tick tock I'm on Twitter or X and so you can catch me all over the place probably most active on Twitter and Instagram now Okay, okay. Is there anything you want to leave the audience out there? Stick to the plan I know that the bear markets are scary out there But if you don't need money for five ten fifteen twenty years You you know try to think to yourself is the market going to be higher or lower Ten fifteen twenty years from now and that is the bet you're making It's not going to be possible to time the market every little zig and zag and you don't need to to get extraordinary performance Okay Well Colin definitely. Thank you. Nice to see you again at least virtually and Glad we was able to get this done But ladies and gentlemen and to the next video podcast cartoon book or whatever else crazy You see me doing around the globe guys and girls know my name is Prince Dykes. I'm the Prince of Investing Peace be safe. I'm out and thank you