Rich Habits Podcast - Q&A: $25K Coaching Course, Cancelling Life Insurance & Timeshares

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Starting point is 00:01:06 public.com. These are our Thursday episodes where you can ask us questions about whatever and we'll answer them as if we were going through whatever you're going through. You can ask us questions on Instagram at Rich Habits Podcast. Just to just a little DM over there, which we've got a couple Instagram questions in this episode. But you can also email us your questions at rich habitspodcast at gmail.com. We've also got some of those here as well. And if you want your questions answered face to face with Robert and I outside of this podcast, consider joining the Rich Habits Network, which is our community for our biggest fans of the show. We have over a thousand, sixty people now that are inside the Rich Habits Network. A hundred and like 30 people have joined just this month in August alone.

Starting point is 00:01:50 We're so grateful for those you have joined the Rich Habits Network. But the reason I mention it is because we host a two-hour weekly live stream every Tuesday night. And during that live stream, you can turn on your Zoom camera. You can turn on your microphone and say, hey, Robert Austin, I got a question. I mean, to get it off my chest here. And then you just, you get our honest feedback. And we also have Friday office hours where we hang out for an hour on Friday afternoons inside the Rich Habits Network and people have their cameras on, off, whatever. We're just chatting and having a good time. So if you want more access to Robert myself, please consider joining the Rich Habits Network. we're still running a seven-day free trial using the link in the show notes below definitely and office hours are

Starting point is 00:02:29 becoming a pretty cool Friday afternoon kind of hang out online i'm usually in the car eating tacos or something but they're growing very quickly and it's cool to see so many people just casually on a friday getting together with austin and i and eric and you know going through things because personal finance is personal and we are here to provide as much value as possible in any way we can throughout all of the rich habits entities. All right, Robert. So our first question here comes from an email we got from Ryan S. Ryan says, thank you all so much for everything you do.

Starting point is 00:03:06 I've learned so much and the advice is beyond great. I'm 48 years old, currently receiving $7,000 a month in dividends between SPYI and JEPQ. I currently reinvest this money each month, but I now have a senior in high school that's going to college next year and another child that's going to need a car. in the next couple of years, and they'll go to college eventually too. So I will most likely be using some of these dividends to try and fund these costs. My wife and I both have pensions, so we will not have to rely on our investments and savings and things for retirement. So my question is, when I no longer have college to pay for and all of these costs are behind me, should I leave the investments alone

Starting point is 00:03:46 and let the dividends continue to come in and then I maybe reinvest them or do whatever I want? Or should I switch out of dividend investing and invest instead into index funds. Thank you all so much for the help. Ryan. This is a really good question, Robert. So like let's kind of break down for people listening right now when dividends and income focus should be, you know, paramount versus growth instead. So let's be clear, right? Dividends are paid by companies that have long track records of cash flow. Think Coca-Cola or Home Depot or lows, right? These. These companies have been around, rather, for decades, and they continue to pay their investors healthy dividends every single quarter year, things like that.

Starting point is 00:04:31 Now, SPYI and JEPQ have really taken advantage of this, and what they've done is they've essentially built out a systematic way to invest into the index funds we know and love, like the S&P 500 or the NASDAQ 100, but sell covered call option contracts against those indices, allowing the holders of these ETFs like SPYI for example to receive monthly distributions from NEOS themselves, which is like selling those covered calls,

Starting point is 00:05:01 receiving the premium, you're off to the races. If you're someone who needs the income, yes, NEOS funds absolutely can solve that problem. And when I say need the income, I'm specifically talking about people who are saying, okay, I'm ready to set

Starting point is 00:05:17 aside growth, I'm ready to stop focused on the volatility, the high beta, the AI names of the world, right? Like, I'm ready to just kind of like take a little bit easier, have more of a consistent, predictable type of portfolio that's going to serve my needs in retirement or whatever's going on here and use that money to sustain my lifestyle. Normally, people do that, Robert, when they're older, right? When they're ready to kind of slow down, retire and live off of their portfolio. On the flip side, right, if you're in your 20s, 30s, 40s, and even 50s, people tend to instead focus their capital and invest their capital into index funds and growth

Starting point is 00:05:56 ETFs. Because the goal here is, of course, to grow your capital while you're still young and you've got decades of compounding in front of you. And then once it's grown as high as you need it to be, most people then say, okay, I'm going to rebalance my portfolio to then focus on the income. I am pretty much following that same approach. I've got six figures in Nios funds because I love the income they pay me. But I have the rest of my portfolio, Robert. right, invested into growth and index funds and things like that. So if I were in Ryan's shoes here, if you want to use these dividends to fund college and, you know, the car and things like that, rock and roll, you're obviously getting $7,000 a month. That's great. But you also said,

Starting point is 00:06:35 hey, I don't need this money. I'm only 48 years old. You know, fast forward five, six years in the future, you're going to be in your early to mid-50s. Yeah, if you wanted to focus on those index funds and growth for another 5, 10, 15, 20 years, I wouldn't blame you. you still have some good compounding ahead of you. But what's your take, Robert? Yeah, I wouldn't change a thing from what you said. I think Ryan is way too young to be focusing on income right now versus growth. And unfortunately, we don't have Ryan's total picture of net worth and what they have everywhere else.

Starting point is 00:07:05 So that kind of puts us at a hindrance here for this answer. But I agree with you 100% Austin. I think at 48 years old, Ryan should keep rocking and rolling, put that money towards growth to build those portfolios as large. as he possibly can. And then maybe in seven, eight, ten years, then dial it back and take some of the income like the SPYI that he mentioned. So I agree with you 100% here. I don't like to see people take their foot off the gas too early for dividend growth unless they need the income. And in this situation, he doesn't. So I agree with you 100%. So our next question comes from Tom B. Tom says,

Starting point is 00:07:44 Hi, Austin and Robert. My wife and I just got married about a month ago. And we've not had the chance to combine all of our finances since getting back from the wedding and the honeymoon. I make $150,000 a year. I currently have $35,000 in a high-yield savings, $68,000 in a Roth IRA, $140,000 in my Roth $4.1K, and $130,000 invested in my individual brokerage account. Additionally, we took your advice and bought a duplex last summer. It has a $360,000 mortgage, and we are house hacking. My wife is a pharmacist at our local children's hospital. She makes $100,000 a year, has just under $100,000, thousand in student loans and she qualifies for the public service loan forgiveness program at the moment we're paying nine hundred dollars a month which is her minimum payment on her student loans and another nine hundred

Starting point is 00:08:33 dollars we are putting in a money market account she has 15,000 dollars in this money market account we're not touching that 15,000 dollars in the event that the PSLF program disappears in seven years when the loans would need to be forgiven. She makes $100,000 a year, has $2,000 in her high-yield savings, $60,000 in a 403B, $15,000 in an individual brokerage account, and again, that $15,000 in a money market. She's very passionate, however, about starting her own online women's health coaching business as a side hustle. After quite a bit of research, she took an online seminar for a business coaching program, and she just completed it. The people promised that they would help us get her business off the ground. Now obviously mentorship and business coaching is incredibly

Starting point is 00:09:21 valuable, but the problem is they're asking $25,000 for an all-in-one, one-on-one coaching service. We have vetted them to make sure that this is legit and that it's not some crazy online Ponzi scheme. My question for you guys as entrepreneurs is do you think that this is worth spending $25,000 for having the coaching to get her coaching business off the ground? And if so, do you think that we should use the 15,000 of her loan money? Do you think we should use money in her brokerage account? We feel strongly that this could be a very successful business venture, and it would be an avenue to help her pay off her student loans quicker and create extra source of income. Okay, Robert, you kick us off. Yes, Tom, I'm going to make this really simple

Starting point is 00:10:06 for you guys. No, I don't believe it's worth $25,000 to get started with a coaching program. Here's why. If you guys were already up and running and you were doing $5 million, $7 million a year and you were trying to get to $20 million a year, then maybe a $25,000 course would make sense. But I think with so much information available out there to be able to put together a coaching program using ChatGPT or Gemini or Claude Work or whatever you wanted to use, I think it's not a great idea to pay someone $25,000. We live in a world right now where everyone is a coach, teaching coaches how to coach. And I believe that there's just so much information out there you can get for free. I would rather see you save the $25,000, do the work yourself to be able to build out the program or pay somebody hourly to build out the program for you that would probably cost you to $3,000 rather than the $25,000.

Starting point is 00:11:06 Because you have to remember, these high ticket sales coaching programs can work for some if they're already at a high level and trying to build higher. But with just starting out, I think that's way too much money to spend to probably and likely get very rudimentary information of how to set up the coaching program. That would be my take. And I think you'd be better suited joining the Rich Habits Network and using the seven-day free trial and getting in there because there's so many smart people in the Rich Habits Network to help you guys get this off the ground.

Starting point is 00:11:38 Yeah. I don't know if I would spend 25,000 to have someone teach me how to build a coaching program. I feel like, could be wrong here, but like what all goes into a coaching program besides coaching people, right? Like, sure, you have to figure out like some, you know, drip campaign, email stuff, maybe a community like school to like host it on. But it's, it's not $25,000 of like, I don't know. That to me, like, I'm sure they're great. I have no idea who you're talking about here that's charging this. Like, I'm not calling them anything. I'm just saying, I would much rather you see and have a quarter of that money, right? Let's just call it five or $10,000 of that and use that

Starting point is 00:12:19 money to invest into different AI, you know, agent workload processes or maybe hire someone part-time to help you with your marketing or like, I just, I feel like for 25 grand, they're going to build it all from scratch and get my first hundred customers for 25 grand. Like, holy smokes, it's a lot of money. Here's what I would do, tactically speak. You mentioned online women's health coaching business as a side gig. Go to school.com, S-K-O-O-O-L.com, click on their discovery. And if you type in women health, you have a thousand results that pop up. So there's already a thousand people who are already offering this online women's health

Starting point is 00:12:57 coaching business on school. And I'm looking at it. We've got Dr. Purity Menopause Reset, $99 a year, 334 members. That's pretty cool. We've got Bikini Bliss Fitness, 143 members at $44 a month. We've got, oh, Body Smart Challenge, the number one woman's health group, get expert nutrition tips, support and guidance to feel strong. 11,000 members are inside of this one, right? So, like, I guess what I'm trying to get at here is there's a lot of maybe competition plus, like, existing, you know, successful people that are doing something in this niche already that you can gain inspiration from, that you could perhaps join.

Starting point is 00:13:37 I don't know. I just feel like there's a lot out there right now that is free or very low cost. That's going to help you go from zero to one from starting your woman's health coaching business as a side gig versus spending $25,000 and having some mentor slash coach do something else for you. That to me is like a big price tag. Now if it was $2,500, sure. Maybe it's worth it. Right. Like that's fine and you have clearly the amount of money to do it. But 25,000. now that's a big price tag. So that's my take. I would just, I would start yourself first and see if you really can get something like this off the ground before investing so much money. And then of course, like as always, like when it comes to investing money into a business like this, there has to be a clear ROI. If I spend this, how much will I make on the back end, right? You know, just like marketing. If I spend 10,000 of my marketing, is it going to make me 40,000 of sales? And is the margin on those 40,000 of sales going to pray for the marketing? Right. So it's like, that's how you should be thinking about this. And just by looking at 25,000. here. I don't know if you're going to make 25,000 in profit, even the first year. You mentioned side gig. I mean, you have a full-time job as a pharmacist. Like, that's just, you know, mathematically speaking, how my head goes as well. And the other thing is for me that I'll add, the last thing is when considering these high-ticket courses, if these people were so good at their jobs, why are they only selling courses of how to coach and do all this and charging people so much money? I get it that it's one to many for them.

Starting point is 00:15:08 And if they can build out this ecosystem and charge people $25,000 and they get 10 people a year, great. They made $250,000. But I just think with today's tools and modern technology with the right prompts, even in just chat, GBT, I think you could get all of the framework laid out in a couple hours, put it to work, get up and running, and then reevaluate after a few months of getting started. Yeah, Robert, I'm totally agreeing. Now, our next question comes from an anonymous listener. They say, I want to thank you for the advice I've learned from your podcast over the last few years. Here's my question. I'm 32 and my fiance is 31.

Starting point is 00:15:46 We're planning to get married in the fall of next year, followed shortly by my separation from the military and early 2028. Thank you for your service. Due to this, I want to start saving $3,100 a month between the both of us in a high-yield savings account and separate accounts. The plan is to have $25,000 set aside for a wedding in a year and a combined emergency fund of $60,000 to $80,000 by the start of 2028 as I transition out of the military into a potentially high paying but furlough risky career. My fiancé will have to move and seek new employment as well, which is why we want to be very cash heavy. We plan to only max out our Roth IRAs and receive the employer matches during this next two years.

Starting point is 00:16:32 year span as we save up this $60,000 to $80,000. I'm very much committed to this career transition and will redeploy the cash assuming the transition is seamless. We currently make $200,000 a year pre-tax. I have $300,000 in retirement accounts, $47,000 in a bridge account and my high-yield savings sits at $20,000 for my emergency fund at the moment. I listen to your podcast every day and I'm looking for permission to execute this plan or any additional advice you can give. Robert, what's your take here? I think anonymous listener, this is an incredible plan. It's very well thought out. I like the fact that you're thinking ahead saying,

Starting point is 00:17:08 all right, we're going to need some extra cash to make this transition during this furlough, risky career move. I love everything about this. You definitely have my permission because what so many people do when they have a major life change and they're not prepared with that emergency fund or even having additional money in the emergency funds, they go to the credit cards.

Starting point is 00:17:29 and they're like, hey, honey, we're going to be all right. Let's run the credit cards up for a few months until we get back on track. And we don't want to see that happen. So you 100%. I love this for you guys. You have thought through every bit of this. And I think it's a great plan. And you definitely have the thumbs up from me.

Starting point is 00:17:46 Yeah, because a couple things stick out. I agree with you. They're still going to be maxing out those wrought IRAs. They're still going up to the employer match. So like the compounding hasn't stopped. They're still going to be investing and doing the right things. They're just kind of slowing it down and redirecting. this extra capital to a nice big high-yield savings account, which, by the way, you're going to be

Starting point is 00:18:03 earning interest along the way, which is good. So you're not just going to be deteriorating against inflation. So you've got this high-yield savings account, earning some interest over there. And then they also said, listen, if everything's fine and works like we hope it does, we're going to just invest the money like it should be and go back to a normal, call it emergency fund of $10,000, $30,000. I think this is great. The only thing I would add, though, Robert, is proactively, what can we do now to ensure that your fiance that's going to be seeking new employment can get that employment. Maybe we work with a recruiter. Maybe we work with someone that can help us brush up the resume now that everyone's using AI. Maybe we could do some interview coaching. Like what can we do now to

Starting point is 00:18:41 ensure that when that time does come and they come in, call it 12, 18, 24 months, that your fiance is getting a new job, that they are set up for success. And that new job process is going to be seamless for them as well. Yeah, I love that takeaway. And that's a good kind of a different. way to think of this because he's obviously a high earner making the transition. They're both really setting themselves up well. I mean, having 300,000 in retirement accounts at 32 years old is just really, really awesome. So I think they're going to crush it. And I love this takeaway. So before we jump to our next question, got to give a shout out to public.com this episode's title sponsor. Public is the investing platform for those who take investing as seriously as we do

Starting point is 00:19:22 here on the Rich Habits podcast. On public, you can build a multi-asset point. portfolio of stocks, bonds, options, cryptocurrency, which like Robert, we've seen some action with Bitcoin and Ethereum lately. Hope you all been dollar cost averaging. But now they've also got generated assets, which allow you to turn any idea into an investable index using AI. And it all starts with your prompt from renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and just put the AI to work. It screens thousands of stocks, builds a one of kind index and even let you back tested against the S&P 500, all with just a few clicks.

Starting point is 00:20:02 Generated assets are like ETFs with infinite possibilities. They are completely customizable. They're based on your thesis, not someone else's. So go to public.com slash rich habits and transfer your portfolio today. That's public.com slash rich habits. Paid for by public investing, full disclosure in the podcast description. And you all know we love public and they have so many great tools. So make sure you check it out. Yeah, Robert. I I mean, this is a good time to remind everyone that public has recently come out with their AI agents. But beforehand, you had to be on a wait list to use it. Now anyone can use their AI agent product.

Starting point is 00:20:37 So you can have AI agents in your portfolio, trading on your behalf, doing and investing in things that you're interested in. That is completely open to the public now. So go check out AI agents. And they also have a catalog of strategies. So you're like, I don't know what to tell an agent what to do. You can go browse strategies that other people are using. So public, they're awesome. Go to public.com slash rich habits and explore their whole platform.

Starting point is 00:21:00 Robert, our next question comes from Siss K. Siss says, hi, Austin and Robert, I have been listening to your podcast for years and really appreciate all the advice and knowledge you both share every week. My question is regarding my term life insurance policy. Currently, I have term life insurance with a $1 million benefit. And as I understand it, it's a good thing to have in case something happens to me one day. my family is going to have enough money to be fine. However, I recently looked at my overall financial picture and I wonder if I really even need a policy. I only have one mortgage with $300,000 of debt

Starting point is 00:21:35 and I will be done paying it off in 10 years. I have no kids as I'm single and I only take care of my mother who is in her early 70s and I'm in my 30s. I have $1.5 million invested in my retirement accounts, my bridge account as well as my savings and that is not counting my current home that I'm living in. I reside in California, work in health care, and make $180,000 a year. I have a $300,000 whole life insurance policy as well. So if I die, my whole life insurance policy will pay off my home. My mother will live then in a paid off home and then she would take the $1.5 million of investments and savings I have and use that for her remaining years. Do I still need this $1 million term life insurance policy? What a good question. Well, you mentioned you have a $300,000 whole life

Starting point is 00:22:20 insurance policy. Not a fan of that. Whole life insurance policies are full of fees. They underperform. I can go on and on and on about how bad a whole life insurance policy is. If I were you, I'd cut that. Take the cash benefit that you can get and invest that somehow, some way yourself. Take those monthly contributions you are making and invest that too. Like, it just, whole life is bad. That said, you might find yourself here at a point where you're what's called self-insured. And this is the point everyone wants to get to. Is self-insured? Is self-insured? insured. What does that mean? To be self-insured means you have enough assets, enough investments, enough cash, enough everything, savings, that if something did happen to you, the people that would

Starting point is 00:23:02 inherit those assets would be fine, right? It's like they inherited a million or two million dollars from a policy anyway. So you seem with $1.5 million plus this $300K of debt with the mortgage, like technically speaking, your mother could use a part of that $1.5 million to pay off the mortgage debt, have 1.2 million and then live in a paid-for house, you're self-insured. That's pretty cool. That's everyone's goal. Because the goal here, right, is like, when it comes to term life insurance, its purpose is to help kind of bridge you from I'm just getting started with building wealth, to I'm now self-insured. And if something bad happens to me, when I die, the people that inherit my money are going to be fine because I have enough money for them to inherit and live off of that we

Starting point is 00:23:40 don't need that one or two million dollars of term life insurance anyway. Now, if you were 27 years old, you're a new mother or father, you just got married, have a couple kids, or whatever's going on there, and you have not yet built out that big one or two million dollars, then yeah, term life insurance is definitely a useful product there. But I think you're self-insured. I would agree with you here. So here's perhaps something I would consider. One, get rid of the whole life insurance policy. Take that cash benefit, go put it into the markets, let it grow. And then whatever monthly payments that you were paying toward your term life insurance and your whole life insurance, that new payment there could be added to the cash balance that you had just invested. And now you've got this other

Starting point is 00:24:21 sort of nest egg growing for you. Maybe add it to the $1.5 million. Like there's a world here where you have no policies, but you have so much money invested for you that you don't need it. And the money you're saving from those policies gets invested to. And you're just building wealth into perpetuity. Yeah, I would say, sis, I agree with that, Austin. And the number one thing people need to consider in their 30s or even 40s now, even 50s. I mean, is with modern technology and AI and everything that's happening in the medical fields, we are in a world where so many of these doctors and so many of these studies are saying that aging is going to be a thing of the past and people are going to live infinitely longer

Starting point is 00:25:01 than they are right now. So I just want to make sure everyone listening that's setting themselves up and obviously CIST did a really good job getting to this much net worth already. But you don't want to be in a situation where you're taking your foot off the gas because you have $1.5 million now because let's say if everyone in this podcast watching today is in their 30s or 40s and they're going to live an additional 10 years on top of the expected amount of time they're going to live moving forward, you're going to need more money in retirement. So I want to make sure you keep that in mind like Austin said because I'd love to see the whole

Starting point is 00:25:36 life insurance policy go away. That money keeps investing in compounding because you're going to need more money in the future than you think you do for retirement. And I would hate to see so much of it set up in these insurance policies for what might happen to your mother down the road. Let's hope that she lives many, many years to come. But you just want to be prepared, but not so over-prepared that you're not taking care of yourself as well. So our next question comes from Alex H. And this is on Instagram. Alex says, hey, I recently received an amount of money of $6,000 to use for college. I don't need to use it right now as this money is just going to have to sit and it was gifted and I just don't need it. Do you have any recommendations on a high yield savings account,

Starting point is 00:26:21 a place I can park this and earn some interest? Robert? Yeah, I mean, that's an easy one, public.com. We love public. They are very competitive with their rates and their high yield cash account is fantastic along with all of the other tools we always mentioned. So congrats on the $6,000. Alex, I'd open up a public.com account right now, put it in the high yield cash and rock and roll and you'll be set up for the future. Yeah, and I'm looking at Publix high yield cash account right now. It pays 3.3% APY. And I'm looking now for other high yield savings accounts from any other people out there. I'm looking at wealth front. I'm looking at betterment. I'm looking at everything I can possibly find. And it seems.

Starting point is 00:27:08 like, yeah, they are, they're in front. So 3.3% rock and roll. And that's, that's not like a little, you know, oh, I'm going to make this for six months and it drops to 1%. Like it's, it's 3.3%. So these other high old savings accounts people use, they forget that like the promo 4, 5, 6% their earning is only for a month. Or it's only for three months or six months or something. Right. So it's like on public, you can have a high yield cash account that pays you 3.3%. And they're going to pay that until the Fed cuts rates, or something else happens where they have to lower that. But until then, you're off to the races. So hopefully, Alex, this is helpful for you.

Starting point is 00:27:44 And let's not forget Austin. Public's generated assets are incredible. I know thousands of you guys that follow us along here at the Rich Havits podcast and in the network are using these generated assets. But for those of you who haven't opened a public account, go check out the generated assets tool as well. It is incredible. If you want to build a cool portfolio, see what other portfolios people are building.

Starting point is 00:28:07 because it just gives you access to all these cool tools, and that is why we're such big fans of public.com. 100%. Now, our next question comes from BG on Instagram. BG says, hey guys, thank you so much for what you do. I love finding nuggets of information in your podcast. I travel a lot and listen to you guys all the time on the plane, so I'm constantly learning about my finances.

Starting point is 00:28:28 I've got two quick questions. Question one is, in regards to diversifying your portfolio, when I hear you talk about this topic, you mentioned the core satellite strategy, 65 to 85% in the core bucket, 15 to 35% in the satellite bucket. My question is, are you talking about your total portfolio or a specific account? And my second question is, I have a timeshare balance of $48,000 with a high interest rate at 14%. I'm going to get some vested RSUs in the next year worth about 50 grand. And my plan is to pay off the $48,000 of a timeshare balance at this 14% with the

Starting point is 00:29:07 50,000 of RSUs. Is that the right move? Robert, over to you. Yeah, I love it. And you are absolutely right, BG. And that is, we want you to follow that core satellite strategy over all of your accounts. It can be your traditional, your Roth, all combined. You're not trying to pick each one and separate it out. That's too much work. We just want to make sure you stick to that strategy over all of the various accounts you're

Starting point is 00:29:33 going to have because as you get more money and you grow more and more, you're going to have to keep an eye on where you're at. So you don't get overly leveraged too much into single stocks or maybe too much crypto because we want to make sure you're growing these portfolios correctly. For your second question, absolutely yes. At 14 percent, you're paying that high interest rate. That is high interest debt. We need to get rid of that.

Starting point is 00:29:57 And if you can use those RSUs next year and keep making the payments now and wipe that out, I think that is a really, really smart move because you just can't out invest high. interest debt. We talk about this all the time. And 14% is right in the middle where it's very difficult to make more than that consistently while investing to get ahead of that. So I definitely like that idea of using that RSU bonus, that money that you're cashing out to be able to pay that off. Couldn't agree more. As it relates to the core satellite portfolio as a reminder, we always say 65 to 85% of someone's invested capital should be in index funds and ETFs like the S&P 500, the NASDAQ 100, the Dow Jones Industrial Average, VXUS, right?

Starting point is 00:30:43 International stuff. Like, you should have the vast majority of your invested capital in index funds that compound at 7, 10, 12% annually over a long period of time. Like, that's how you build wealth over a long period of time. The other 15 to 35%, we call it the satellite portfolio because, you know, as you think about kind of satellites going around the earth, they're a little small opportunistic things around there. If you want to diversify, let's call it, I don't know, maybe a fourth of your portfolio,

Starting point is 00:31:11 25% Robert, and have a little bit of cryptocurrency, a little bit of precious metals, a little bit of real estate, a little bit of venture investing, a little bit of insert something else here, you can do that, right? And that's the side of the portfolio that that comes from. And the goal is to ensure that you're staying always between that 15 to 35%. Because what people don't tell you about sometimes buying single stocks, which, wow, look at these, semiconductors, look at this, this, that, and the other, you know, Robert, and don't get me wrong, we've been talking about SMH and SOX and things like that for years, so I'm sure a lot of people made a lot of money like we did along the way, but semiconductors had a little bit of a blow off top

Starting point is 00:31:51 during the summertime. SOXX as an ETF fell, like the semiconductor industry fell by about 30%. So if you have that sort of, you know, opportunistic semiconductor part of your portfolio making up more than the 15, 25, 35% in that satellite section we're talking about. And maybe it was flip-flopped, right? Maybe you had the vast majority of your portfolio in these, you know, satellite opportunistic diversification things and the market moved against you the wrong way. You might be out a big chunk of your net worth because you, you weighted things incorrectly. And so it's always important to understand portfolio construction, which again is like index funds, ETFs and opportunistic things here and there and make sure that portfolio construction, and here's the key, Robert, aligns with your

Starting point is 00:32:37 risk tolerance. And when it aligns with your risk tolerance and it makes sense for your, you know, investing journey, then really cool things begin to happen from a wealth building perspective. I love, love, love the breakdown when you talk about portfolio construction because I think so many people, I see it all the time in the Rich Abbots Network, they get this wrong. They think that they're supposed to get money together and then constantly take big shots and big risks and they do it with all their money or a large portion of it. They get a stock tip or a crypto tip and that is what happens when people are gambling and not investing long term. And that's why when you talk about portfolio construction and the core portfolio strategy, this satellite strategy,

Starting point is 00:33:23 it's so important for people to understand you're taking some higher risk, but it's in that 15 to 35% bucket and 65 to 85% is there for the long term to ensure you never go broke and you're building towards retirement. I really love that you talk about this a lot and how well you break it down because I think it just doesn't click for a lot of people that they think they should be risking it all all the time on these high risk things that they're looking at and it's just not how to build real wealth. And so I appreciate that. Absolutely. Everyone, thanks so much for joining us on this week's episode of the Rich Habits podcast question and answer edition. Don't forget, join us in the Rich Habits Network. We have over, I'll look it up right now, Robert. Let's see how many people

Starting point is 00:34:06 have joined us in the month of August so far. We're filming this right now in August 24. And at the moment, throughout the month of August, we've had 144 people as of time of filming this right now join the Rich Habits Network. They clicked, I want to do a seven-day free trial, 144 people in August. Why are you not the 145th person? Obviously, a hundred people were like, yo, I'm joining this. Right. And the best part about it, Robert, and I know we talked about this recently, too, our retention rate is 98%. Robert and I, on a weekly basis, I mean, we're getting back to all the questions. We're posting the sauce. Like 98% of people stick around. If it's not right for you, that's cool. It's a seven day free trial for a reason, right? It's free. Like, nothing's like,

Starting point is 00:34:53 it's all good. If it's not your fit, that's fine. But 98% of people tell us that once they do stick around for a month or two, they really enjoy it. So give it a try. Join the Rich Habits Network. We'd love to have you join us for that seven-day free trial, hang out with us in this two-hour weekly live stream, or invest alongside of us into some really interesting companies. Robert, right now we're investing into a BCI company, a brain computer interface company that competes directly with Neurilink, which is Elon Musk company. So it's really interesting. we think it's an awesome opportunity. I'm investing into it.

Starting point is 00:35:27 I know Robert is as well. I've actually invested into it twice before. This is our third time investing into it as a group. So it's cool. We got some cool stuff going on over there. Join us inside the Rich Habits Network. We'd love to have you. Yeah, Elizabeth brought it up in the car

Starting point is 00:35:39 when we were on our trip to the Keys this weekend. And she was like, it's so crazy how entrepreneurs and people in business give up so soon. And she brought up the Rich Habits Network. She goes, it's been so wild to watch you in Austin because she was there the day you called me the first time and said, hey, bro, I want to do this podcast with you. And she said over four years to think that you guys have built this massive community, one of the biggest financial podcasts.

Starting point is 00:36:08 And most people would have never given themselves the opportunity to do that because they gave up too soon. So I love what we've built. I think the Rich Habits Network is definitely one of the best communities on the internet for people that are looking to level up their finances and their business knowledge and their mindset because we both believe that mindset is so important. So if you're one of those people and you feel you could benefit from this, just check out the seven-day free trial. There's no strings attached. You can't go rock. Thanks, everyone. And we'll see you tomorrow for our episode of the Rich Habits Radar. Two and five Canadians will hear the words you have cancer. That's why every

Starting point is 00:37:13 step and dollar raised matters. On September 19th, join thousands in Toronto for the Princess Margaret Cancer Foundation Walk. Challenge yourself, friends, and family to walk 21 kilometers in support of life-saving research. Together, we can carry the fire and help create a world free from the fear of cancer. Register today at pmcfwalk.ca.ca.

Rich Habits Podcast - Q&A: $25K Coaching Course, Cancelling Life Insurance & Timeshares

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