Creating Confidence with Heather Monahan - The 5 Things You Need To Know To Invest Like a Money Master with Peter Mallouk Episode 141

Episode Date: August 24, 2021

Are you ready to accelerate your journey towards financial freedom? I know I am! Today I have the brilliant Peter Mallouk, President and CEO of Creative Planning, with me to show us how to start making SMART money decisions. This is advice from the top financial advisor in the game! He will share when and when not to invest, how to manage risk, and how to align investing with your personal goals. For all the tips and tricks on how to grow your confidence in money mastery, click play!  About The Guest: Peter Mallouk, JD, MBA, is the president and CEO of Creative Planning, LLC, a nationally recognized independent wealth advisory firm with $90 billion in assets under management and clients in all 50 states and abroad. Creative Planning provides comprehensive wealth management services to its clients, including investment management, financial planning, tax planning, retirement plan consulting, estate planning services, and charitable planning.   In addition to leading Creative Planning, Peter is passionate about providing financial education and resources to individuals, families and business owners who have typically been underserved by the financial services industry. He and his wife Veronica are the recipients of the Giving the Basics Human Dignity Award for their contributions towards helping those less fortunate meet basic needs, and recipients of the Variety Presidential Citation Award for their work supporting those with special needs. Peter has served on the boards of Pathway to Hope, American Stroke Foundation, St. Michael’s Finance Council, Kansas City Hospice and KCCAN!   Finding Peter Mallouk: Website: https://creativeplanning.com/  Twitter: @PeterMallouk Read The Path Review this podcast on Apple Podcast using this LINK and when you DM me the screen shot, I buy you my $299 video course as a thank you!    To pre-order Overcome Your Villains NOW and get the bonus bundle click here: https://overcomeyourvillains.com     See acast.com/privacy for privacy and opt-out information. See acast.com/privacy for privacy and opt-out information. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Faster, no sleep, no. I'm ready for my close-up. Hi, welcome back. We are here this week with Peter Maluk. Get ready for it. President and CEO of Creative Planning, a registered investment advisory firm that manages over $50B, billion in assets and serves clients in all 50 states. Peter has been featured in

Worth magazine's Power 100 received the Ernst & Young Entrepreneur of the Year in 2017 and regularly appears on CNBC, but it doesn't stop there. Away from his day job, Peter is chairman of KCCan, an organization of volunteers dedicated to improving the quality of life of children in Kansas City. But has also served on the boards of Pathway to Hope, American Stroke Foundation, St. Michael's Finance Council, Kansas City Hospice. Thank you for being here, Peter. Thanks for having me, Heather.

Well, I'm so excited to figure out how an estate lawyer ended up partnering with Tony Robbins. What is that all about? It's got a long and winding road and all the abbreviated for your listeners, but basically I went for being in a state attorney for other advisors, learned a lot about the industry, got on to the wealth management side,

and the idea was not just to manage money, but to manage money and do tax and legal and planning and all of those things in one place to really be a family office for all. Our favorite headline in the history of creative planning was when Barons didn't article on us and said creative planning is a family office for all. That's how we see ourselves as a place where client can make sure all those pieces are talking to each other. We were really out of the

industry that's in doing all those things. Tony Robbins had written Money Master the Game, which I think to this day is still the top selling book of this century so far on finance. And he had written it because he had a 401k plan. Somebody had come in, named Tom Zagainer, and met with him, and showed him that he was paying three times as much as he needed to in his 401k plan. They wound up moving their 401k plan to the Sky Tom, who now works at Creative Planning. And it really opened Tony's eyes up. So he called some of his clients, and some of his clients are like Ray D'Alio and Tutor Jones, some of the biggest hedge fund managers in the world. And he started to learn from them how the industry works.

And from there, he went and talked to Jack Vogel, who was the founder of Vanguard, and he went and talked to Charles Schwab and Alan Greenspan, and he wound up with all these interviews. And his advisor said he should really turn these interviews into a book. And that's how money matched the game formed. All of a sudden, all these people wanted to know who Tony's advisor were, and they kept going to his advisor. His advisor and I connected, and his advisor started sending those clients to Creative. Tony eventually came over to Creative himself, met everybody, got to know the firm.

His advisor joined Creative, Tom Zagayner joined Creative, and then we wrote two books together. One was Unshakable, which did really well, and the other one just came out the path. And so it was a really crazy adventure. We hadn't known each other when we'd eaten our first books, and so to get to this point has been really fascinating. It's so bizarre because it's not something I'm sure you ever thought when you were getting started that you would end up writing co-authoring books with Tony Robbins. No, I'm also writing one of this Jonathan Clements who used to write in the Wall Street Journal who I read growing up. And so it's just fascinating to be writing books with these two who I had no personal connection with until just a few years ago.

Do you actually write because to me thinking of a person that's more into numbers and fine and I don't in my mind and correct me if I'm wrong, I don't see that typically as the creative person that dives into writing. How does that work for you? I think you've got to pretty figured out. Normally the numbers people aren't writers and I think I'm more of a writer than a numbers person, believe it or not. So I do actually write all my newsletters

and I write content in my books and all of those things. I don't use a ghost writer. And I think that ultimately you want to have your voice. Now I have a lot of editing and I have a lot of people proof it and that people help me with research. But we really do. And I know Tony really does write his parts too. Wow.

Do you think that what you just described as leaning more towards the creative side? Is that what separates you? think that what you just described as leaning more towards the creative side is that what separates you? Is that what makes you unique in this business? Well, I think the business is a little bit messy. And so I think that, you know, if you look at the world of advisors, there's like 350 to 400,000 advisors. And about 90% of the work in the brokerage world

and the brokerage world has a lot of products. They get paid different ways. And so you might go to a JP Morgan, which is a good company, but they have their own mutual funds. They have their own all kinds of products. And so you can pay an advisor and then wind up paying again to get those products,

which I view that as going to a doctor who owns the medicine, right? You're gonna get that medicine prescribed to you even if maybe it's not the best medicine for you. So we're in this very small group, this very small group of about 10% of those advisors that are totally independent. We don't have our own products,

we don't sell an investment and collect a commission. And in that world, we're all so holistic. We're doing planning, we're customizing portfolios. That's very unique in our industry, saying, what do you need when you need it? How do we build it? And then giving legal and tax and so on. All of those things together,

I think are what make creative planning stand out in the industry. Yeah, I love the transparency and I can't imagine those other companies are able to lead with any level of transparency. Well, I mean, it's amazing and it's something that just basically the end consumer doesn't understand, so they haven't demanded anything differently. You know, and I think that they know when they go to an accountant, that the accountant's gonna act in their best interests, they know when they go to a lawyer, that's gonna be the case. So they just assume that the advisor that they're paying

doesn't own products. You know, the industry's confusing because the products often don't have the same names. You can be going to like ABC company and they won't sell you ABC product, like they'll sell you XYZ product that's owned by ABC and so you feel like you're getting these independent vehicles and really they're they're just products of the parent company That's very frustrating as an end user and consumer that isn't aware of this stuff without you bringing this knowledge to late

Yeah, and I think that's what we we address that in all of the books You know in the path we talk a little bit about that and we we really focus more on, okay, now that you know that, get to the right advisor, then that advisor, one of their traits should they have to make sure that they're advising you well. It's really trying to walk people step by step through everything they need to know to make smarter decisions with their money. Peter, let's back it up to the elephant in the room right now. So many people, including myself, are so concerned with the uncertainty with the economic environment, with the coronavirus, with who knows what's going to happen, with everything else in our world. How do people take that leap of faith to say I should be investing right now instead

of I want to hold on to my money to make sure I can pay my bills? I would divide it into two parts. One is if people are have job uncertainty, job insecurity, they're not sure how they're gonna keep a roof over their heads a month a month, they should not be investing. They should have the money set aside in a, and then account cash just ready to go to help them get through things. If someone already has a secure job,

or even if it's not secure, they're very marketable, and then it could pick up a job somewhere else, and they already have emergency reserves. Then that group should not be waiting for things to settle down. Things never settle down. Okay, we just trade one crisis for another. Someone who's been investing for 20 years has been through the tech bubble, 9.11, though a 9.9 crisis, the Greek debt crisis, coronavirus, elections, social unrest, all of that. just we're going to have 10 more in the next 10 years.

It's just how things work. But as an investor, just understand that the market is going to find a way. Like, I know if we buy a Hershey's bar today, we expect to pay less than if we buy it 10 years from now. We know that a can of Coke is going to cost more 10 years from now. A meal of McDonald's will cost more 10 years from now. But we're worried if we buy those stocks, in McDonald's and Hershey's and Coke,

that somehow they're not going to be higher 10 years from now. Anything could happen with one company, but the market tends to do what prices do. It tends to have this bias upwards to the right. So there's the Smith, the market goes up and down, it really goes up with just breaks on the way up. So we take a terrible investor, so unlucky. And they invested the day before the way it online crisis.

Well, I mean, their money has doubled or tripled, or quadrupled already. I mean, it's that hard to lose money the longer that you go. So make sure you're secure. You don't go investing money that you need to get by for the next six months. But if you've got a secure job or you're marketable or you've got cash to the bank, then you should quit trying to figure out when you're in the market and just start entering,

start putting a little bit in every month, be disciplined, and start making progress towards your goals. So you didn't have any type of a knee jerk reaction when you saw Disney lay off thousands of people? No, I mean, I think that an investor really should be buying something. You remember that a stock is part of a company. So you're not really, you know, people think it's like a roulette wheel and it's all made up, but it's really part of a company. The company just has to be public. It happens to be public where you can buy shares.

Do I think Disney streaming is going to do better 10 years from now than today? Probably. Do I think people are going to be going to Disney World 10 years from now more than they were here today? Probably and you can go through this with all of Disney's various revenue streams and I'm buying it like I'm a business owner. I think 10 years from now I'm going to be rewarded for owning it now. I could be wrong about one company Which is why it makes sense to own a big broad diversified group of companies most of them will wind up doing better over the long run

And you really don't look at the month quarter to quarter or the year to year diversified group of companies. Most of them will wind up doing better over the long run. And you really don't look at the month, quarter to quarter or the year to year, really look at the very long run. I mean, you really have to go out of your way. I'd be a really negative thinker to think that Disney World's going to close their parks for good. Right? I mean, one way or another, we're going to go back to complaining about how long the lines are. I'm already seeing clips where their lines are back already. You're seeing people are already visiting the parks at shopping. Yeah, I think that no matter what happens

with coronavirus or anything else, one way or another we're gonna get through all of this. I think people already know that. There's a lot of different paths out of it from it just going on for another year, the absolute worst longest case scenario to it, weakening to a vaccine, whatever, you know, pick whatever it is, no one thinks this is going on for five years. And so I think

if we start to accept that as an investor, we're looking at five, 10-year increments, you should be looking at it that way and find your bargains. So what you're describing to me is finding some certainty in knowing that the long game is there, which to me really takes me back to confidence, what role does confidence play in investing? National security experts are warning. Our aging power grid is more vulnerable than ever. January marked a third time a power station

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they get so freaked out watching the financial media that they lack the confidence to invest. They go, I'm going to get burned here. And you've got to recognize that the media is not an investor's front. So no matter what your political or financial views are, most of these media outlets are owned by public entities, ABC, NBC, CBS, Fox, MSNBC, CNN, all publicly traded company divisions, right? So a publicly traded company has a fiduciary duty

to maximize profits to their shareholders. So how do they do that? They all make money the same way. They sell advertising. How do you sell advertising? You need eyeballs, right? How do you get eyeballs? Not by calming people down, not by giving the confidence to invest, but by feeding on anxiety

and negativity and insecurity. And that's what gets people to continue to watch is they're scared. And now they feel like someone needs to help them through it. And so it paralyze people for making the right decision. The more people watch those things, the actually the worse they do. It's the opposite of what you would expect. So what you want to do is you want to push out all that noise,

focus on the facts of how the market works over the long run. Know that a diverse bipolar will work in the long run, start to invest every month and have the confidence not to be shaken. You need to be unshakable through that next correction, through that next bear market. No, that, hey, there's been a hundred corrections, dozens of bear markets. They've all ended the same way. The economy recovers. Every recession has led to an expansion.

Every contraction has led to an expansion. Every correction has given way to a bearable market. And every bear market has given way to a bull market. Every time, have that confidence, don't let anybody shake you from that. On the other end of the spectrum, you have people that are overconfident. There's a lot of research that shows that women are better investors than men. And the reason is that men, if they place a trade and they then it works out well, they seem to think it was due to their brilliance. And then they go start trading more. And the more activity you do, the more it results in underperformance,

whereas women as a group, and everyone's different, but as a group, they tend to be more deliberate about each investment. And so because of that, they don't get overconfident based on a past success. And so confidence is such a big part of being a good investor, understanding what to pay attention to,

and what not to pay attention to. Really gives you that confidence to get through what you need to get through without getting shaken. Of course. It's interesting when you were describing that overconfident investor in my mind, I was thinking about an article I read about day trading and how day trading is taking off and people think that they have the insights to know what stocks to pick. Are you seeing a lot of that? Yeah, whenever you see one sector of the market really take off, you see day traders come in. And we see that now with big US tech company.

So Google, Amazon, Apple, Tesla, you know, no one's gone wrong there, right? You buy it, you sell it, you go buy something else, you sell it, you buy something else, you say, it's who goes up, up, up. Now of course, the person who just bought all of them and held it probably did better. But course, the person just bought all of them and held it, probably did better, but nonetheless, the day traders feel brilliant.

The problem is 100% of the time this party ends and no one rings a bell before the party ends. It ends and usually everyone's caught with their pants down because it happens very, very fast. The top performing stocks in the previous decade are not the same top five from this decade. That's the same story over and over. No matter how invincible a company seems, it eventually gives way to capitalism.

Capitalism basically says, competitors are going to figure you out and they're going to take you out one way or another over time. And so the last time we really saw massive day trading activity was with the tech bubble which you know, a lot of your listeners will be too young for because it's 20 years ago. And there were actually centers opening up all over the country for day trading and almost all of them went out of business when tech stocks crashed back then. I think we're going to see a pretty negative ending to this day trading bubble too. I don't know when it will be, but it will eventually happen. It just, it surprises me that somebody would roll the dice on themselves having zero experience or expertise knowing

there's people out there that can advise them. And I wonder for the people that actually do have financial advisors when they're hearing this conversation and the education that you're sharing with people into what's really happening, how do they know if they're with the right advisor? How do they know how to pick the right advisor? It's incredibly difficult. A lot of people just kind of go with somebody that they know. And I think that what people really want to look for is they want somebody who's competent, right? So try to find somebody who's got a little bit educated in the field that you're

in. So most financial companies are not run by financial advisors and most of the people that give financial advice don't have any credentials or education related to financial planning or financial advice. So I'd say first look for a company that it's kind of in their DNA and a given advice. One where you're dealing with a team that has a certified financial planner giving you planning advice. If they're giving you investment advice it'd be nice if they have CFA designation. Legal, there's a lot of great tax, there's a CPA, to man that your advisor have some credentials and education that that team has those credentials and

education. So, you can separate out a lot just by asking for a little bit of competence and education from your advisor. The second big part is what we talked about earlier, Heather, which is conflicts. Just try to get advice from somebody that isn't conflicted. I don't walk into like a Hershey, Pennsylvania and walk into the chocolate factory and Esquite, chocolate's the best. They're going to give me five different kinds of Hershey bars, right? So you really want to be paying somebody who doesn't own the investment products, their company doesn't

own the same investment products. So you're going to find out you're going to be paying a fee to get those products. So try to avoid that conflict. If you can get those two things nailed down, you've eliminated 95% of advisors and you really worked your way towards somebody that the next step which is important you can connect with. Make sure that there's a relationship that they're used to dealing with people like you. If you're worth 120,000, you don't want to be an outlier to that advisor. If you're worth $10 million, you want to make sure that advisor is used to dealing with $10 million people too? That makes a lot of sense.

So the financial considerations of being your own boss and versus working for a company right now, a lot of people listening are wondering, hey, maybe I should take this time to go to work for myself. How do you advise people that are trying to make a decision? Do I stay in the nine to five corporate America or do I take this side hustle and just go for it?

People have very different views here. So I think what's interesting is millennials have really done both in record numbers. So I see a lot of clients that are closer to the boomer generation, which is above me and the millennials are below me. The boomers, like there were a lot of them that were business owners

and they wanted to be business owners and do all of those things. And then there were many that worked for the same company for 30 years. When I look at millennials, I think they're inspiring in a couple ways, but one of them is they demand that the company that they work for is a good corporate citizen. They're the first generation to really say, it's not enough just to have a nice place to work. I really want to know that I work for a company that does the right thing. My peers do the right thing.

I'm surrounded by people that can only share my values and beliefs. I think the millennials have really done a great job with that. But what I've observed with our millennial clients is a lot of them don't want to be business owners because they don't want the household. So I just even take the medical profession. It used to be all the doctors wanted to work on their own.

Now a lot of doctors can't sell their practices because millennials don't want to buy them. They're like, look, I want to enjoy my quality of life. When I'm off, I want to be off. If something happens in the flood at the office or nurse quits or there's patients that issue at two in the morning and there's no backup, I don't want to deal with it.

You know, I want my vacation, I want to enjoy myself, I'm going to come in, I'm going to do what you need me to do. And my quality of life is too important. It's also the same reason some millennials leave their jobs. They don't like them. They don't like their peers, their boss, whatever. And so they go off and they do, you know, a side gig instead. So I think what's really driving that generation

is quality of life. And it's what makes some of them decide to be employed and make some of them decide to go do something different. But it's really unique to that generation in a way I don't see with other generations before them. So you pointed out some different pieces that a company can bring into the fold, whether it be charity work or mission work, are those some of the things that you've done to make your firms such a standout? You know, I think we were doing it from the beginning just because we wanted to do

it. And I think what we found over time is people really responded to it. And that was a nice side effect. But I just think philosophically, I mean, I think that you might read in like business school, like I did that, you know, a business as job is just to create profit. But I think if a business takes from the community, it needs to give to the community. And I also think it's good business. You know, so I've learned over my career isn't just the beginning, it started out as I feel

like this is the right way to do it. And now it's just good business too. I think every business should be proactively giving to the community and giving their team away to have an outlet to give to the community as well. You're so right. It not only does it foster employee engagement, employee passion with coming to work,

but also the clients. I mean, they love that feel good. Yes, I passion with coming to work, but also the clients, I mean, they love that feel good. Yes, I'm spending money with them, but they're out giving back on my behalf. And that's a beautiful thing. You should know what that means already. That's the best kind of notification. That's the sound of another sale on Shopify. And the moment another business dream becomes a reality. Shopify is a commerce platform revolutionizing millions of businesses worldwide. Whether you're selling books or courses, Shopify simplifies selling online and in person so you can focus on successfully growing your business. Shopify covers every sales channel from in person POS system to all in one

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you and then you don't do anything back. It doesn't it doesn't work today. If it does, it's not going to work much longer. And I think that's a great development. I couldn't agree more with that because back in the day, I don't remember companies even bringing that concept to light, not when I was early on my career. No, I agree. It's definitely new. I think we've been doing it since our inception, but you're seeing it become more and

more front and center now, as people are having the answer to their clients and their employees as to why they're not doing anything. So what are the five biggest mistakes that investors make? Oh, there are so many. That's the title of my first book, the five mistakes investors make, and how to avoid them. And I cover a couple big ones. Number one is market timing.

So that you go into the market, and then you take money out of the market, that's market timing. Like, hey, I'm going to cash because I'm worried about an upcoming election, or I'm going to cash because I'm worried about what's happening in the Middle East or whatever. But some, a lot of people don't think they're market timers,

but they are market timers because they might get a bonus, but they're holding it for the world to settle down. That ended up itself as market timing. It's a big, big mistake. If you meet somebody who says, oh, I lost everything, usually the way they lost everything is they went to cash at the wrong time. There was a bear market.

Market went down. They got scared. They went to cash. They didn't get back in. And they missed Upside for good. It's very very dangerous to exit the market or delay contributions to the market You're almost always going to be on the losing side of that My whole career haven't seen somebody sell out near the top and buy and near the bottom not one time It's just it's a possible thing to do

The second one is we talked about a little earlier with the day trading is all this this active trading. We know the more trading there is, the more taxes are created, the more friction the portfolio is created, the more likely you're going to make a mistake, attributable over confidence, and the more likely you are to underperform. So I think that those are two really big disease. The third is really not understanding all the psychological pressures that make just bad investors. We we have a general negativity bias. If we hear stomping, we think it's a dinosaur and better get an arcade. We're just wired that way. And so we really feed off negative news.

That's the reason you see negative political ads during political seasons is because there's seven times more effective. We just respond to it more. We're wired more that way. And so really being able to filter out the noise, control your behavior so that you have the confidence in the right things, that's a really big part of it. But I think at another big mistake, and I'll stop with them, is just not enjoying your money. I mean, you have money as a means to an end, and you should never give up all happiness today,

in exchange for happiness in the future, and you can't do everything you want today at the expense of the future. Really what we're trying to do is maximize happiness. And so if it makes you feel good to give, and you can't afford to do a lot, maybe do a little bit now so that you can do more later, if you really bring to you huge about a pleasure to have a cup of Starbucks every day, well, have the cup of Starbucks every day. I mean, we don't want to live in misery now

in exchange for a future that may or may not happen. So really trying to make sure that you remember that most of us fall into it starts when we're kids. We just blow everything we have or we can't spend anything. We say everything we have. And really that's not really healthy. Right. We want to find a way to maximize our happiness. We all get become happy in different ways, but a lot of them tie back to money and what it does for us. How do you help people because that sounds as a psych major that it's really, you know, fundamentally coming from how people grew up and how do you get them to see things in a more balanced way?

You know, it's very, very hard to change thinking of people. A lot of people have this feeling of deprivation. You know, a lot of people grew up in homes where they heard their parents talk about money all the time or there was a lot of job insecurity. There might not have been food on the table at times or the heat was off. Getting somebody like that to have a abundance mindset that, hey, you're okay, that's hard. And you also have people that have never had a consequence of spending every dollar they have,

and they don't understand when the last dollar spent, life will change completely. There won't be some easing into it. To me, what I found is empowering the client with education, really trying to educate them on the big picture, but then also with specificity on their own picture. Where are you? What do you need?

When do you need it? What do the taxes look like? If we keep doing these things that you're doing, what are the probability of work out great, in which case quit worrying about it, or what are the probabilities you're going to run on money, in which case, hey, you need to like have a little bit of anxiety around. We got to change your behavior here, or there's going to be a problem in the future. But I think you have to do it in an understandable way. People have to understand exactly what it means to them and exactly what it's going to look

like later if they do certain things, and then you're more likely to get them to do the behaviors and to feel at peace doing those things. And did you just always have this mindset or was it a learned experience for you? I think, I don't know why, but I think one of our advantages at Creative is very, very early on. It was always about what does it mean to you? I mean, the very first client that came in

and did a plan, it was how, what does this money need to do for you? And what do you need to do to be secure for the rest of your life? That was the very first person I ever saw. And that's what everybody that comes here to work every day does. It doesn't matter if they're a lawyer or a CPA. They know, yes, there's laws and yes, there's tax guidelines rules.

And yes, there's money management ideas. But we need to make this relate to what the client is trying to accomplish. That's just always been in our DNA rather than something we learned. I don't know why that is, but it's been a big reason people come to us as they want to know that the way they're invested matches up with what they're trying to do and not just based on their age or their risk tolerance or beating the market or something like that. Well, everything you just mentioned right there is every question you're someone has. You fill out when you're talking to them about working with them. That's right. Yeah. And most people just take that questionnaire and go, oh, you're

58. Well, you're going to be this person in bonds. And that's like the dumbest way to possibly invest. And it's a rule of thumb in the industry, but it's not not a smart way to manage money. I want to hide under the table right now because that's been every experience I've ever had with any investment person. Gosh, I mean, it's terrible. So as you're working with people right now going through the coronavirus, are you giving them any advice? For example, I was speaking to someone who told me,

well, as soon as a coronavirus hit Heather, I knew Zoom was going to take off. So I did jump right in. I know that you're going for the long game here, but do you sometimes advise people to look at new habits and trends? I think with individual stocks, it's harder than it sounds. I mean, there's always going to be the people that hop onto these things, but a lot of these companies that really have taken off, I mean, I work with some of the people that have

tens of millions or 100 billion plus, they're working with some of these companies and being on the inside still sold sometimes pretty early because they weren't sure. You just never really know. You can pick any company today and you can take Netflix today and make a case that it's going to triple and it's going to take over the world and why would it not? You can also make a case that, hey, Universal has their own coming out and Disney's got one now. There's about seven or eight others coming out and there's going to be fee pressure and how are they going to match that fee. I mean, you can make a case for

the demise of any company today and you can make a case for a doubling or tripling. We could do this with Tesla or anything else. In retrospect, it's the only way it ever seems obvious. Well, that's frustrating. You're not giving me, I'm looking for like the magic bullet. I mean, I feel like there's got to be one. Yeah, I mean, if there was, there'd be a whole bunch of people not working, right? And I think that what you find is even more in Buffett over the last 10, 15 years is underperform the market. It's hard to do. And here's a person that's been doing it his whole life, more successfully than anybody else, and he couldn't do it recently, right? And so I think that there's a lot of research that shows the mutual funds that did the best in the last 10 years

actually underperforming the next 10. So even the professionals who get paid hundreds of thousands or millions or dollars, sometimes 10's or millions of dollars, to meet the market and actually pull it off for a decade as a group are more likely to underperform in the following decade, which tells us that there's a lot of luck involved in outperforming over a shorter period of time.

In your new book that I want to talk about because it's just come out, you're getting real life examples. What are some of the examples that you want to shine a light on? Well, I think what the path talks about really is this arc of more than just money management. I mean, we talked a lot about today about money management, which is obviously the crux of what people are focused on. But all money is as a component of wealth. Where are you? What do you try to do?

And so the book really talks about identifying your goals, understanding your relationship with money, understanding why you interact with money the way you do, readjusting that in a healthy way, laying out the groundwork of where you are, the groundwork of investing, having the confidence to be a smart, unshakable investor through down markets.

But then also how to manage risk, how not to lose everything because someone falls down the stairs in your house and sues you, or because somebody in the family dies that was making money or you become disabled. And then how to make sure that you pass it to your loved ones, that you can make important decisions like healthcare decisions for your loved ones, and then how to really enjoy that wealth. It's really that whole journey, all the components of wealth management, the way a very wealthy person looks at it. That's what we really try to touch on in the book. And I try to use real world examples

of how one little thing can change everything. And so you really have to address each part of the step to make this path work out. You can be a great money manager and lose everything because you had a legal thing screwed up. You can manage money great, but if you're losing 30% of its taxes, you'd have been better off doing something much easier.

And so I try to put all the pieces together for the first time for me in a book like this, just everything thrown in there. So that somebody can go, you know what? I spend thousands of hours a year working, tens of thousands over my life, gonna read a book or listen to a book for a few hours. I've got a few hours of work to do.

And all that work that I'm doing day and night is gonna go towards something that makes sense. I feel like there's no better time than right now because so many of us didn't anticipate this level of uncertainty, but like you just explained, someone can literally fall down the stairs at your house, you get sued and you have the potential if you're not set up correctly to lose everything. So right

now the path can really set people up for that next unknown uncertainty. Yes, I think that we tend to do the part that we're really interested in. You know, the really analytical people are in the tax and how it works and the fatalists are in a state planning and someone's always selling insurance and a lot of people are in the money trade investment management so on. But you really have to have all these pieces together. They're all pieces to the same puzzle. They're all part of the same game. You can't just play the part of the game you want to play. All these pieces go together to be successful. And it's a long journey. You know, most of us can be doing this for decades. And so you really have to make

sure all your bases are covered. And I think we do a good job of that in the path. And where can everybody find the path? Say, if I do any major bookstore, they can go to Amazon or any of the online sellers as well. Follow the path on social. You can follow me on social. I'm on Twitter, LinkedIn, and Facebook. And you can also learn more at creativeplanting.com. Thank you so much, Peter, for sharing some of your knowledge today and for creating such an amazing book with Tony Robbins, which is just such a cool story. So excited for the work that you continue doing and all the help that you're giving back. Thank you. Thank you. Thanks for having me, Heather. Okay, hang tight. We're going to be right back. I decided to change that dynamic and the light fell out. I couldn't be more inside of the world, what your getting here, start learning and growing.

Inevitably, something will happen. No one succeeds alone. You don't stop and look around once in a while. You can miss it. I'm on this journey with me. At a time when change is constant and we are pulled in far too many directions, we need a way to stay present to life and to increase our ability to remain calm, think clearly, and maintain our well-being.

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