Should You Pick Stocks or Buy Index Funds?

0:00Welcome to Ask the Compound coming to you live from Future Proof in H like in Beach, California. There's a million people here so we have multiple guests on the show today, including Mystery Guest One right here. We're answering questions straight from our compound inbox. Before we get into it today's show, it's sponsored by When I'm Wearing, Shoppile Brothers. I've been wearing these shirts for years, but the first future proof here five years ago, I had some of my Hawaiian shirts on from them and I got all kinds of people being, hey, can I touch it? What kind of material is that? Where did you get that shirt? So over the years we've actually collaborated with Shoppile Brothers on Hawaiian shirts. We did an animal-spirits one. We did a compound one and we did a compound polo golf now, whichever one of yours is wearing. I have to get Alex one too. Both men and women's fits. I bowled in mine last night and I had three strikes and I had contributed to a shirt. You look pretty at shoppilebrose.com. Click on Collaborations to find it.

1:01All right, we have tons of questions. We're going to start with the most exciting market in the world around the bond market. Let's do it. Okay, first day we got one from Jackson who writes, I don't totally understand bonds. Is that the equivalent of near guaranteed 5.2% annual returns? All right, so let me give you some context here. All right, we're joined by Alex Morris today of FM investments. Alex is graciously promised to buy everyone at the conference a beer later because they just sold to Tiro Price. Is that correct? I'm not going to hold you to that. Thank you. All right, congratulations. Thank you so much. So Alex is our resident bond expert here. So I tweeted something out saying, hey, if you just look at the ag, any sort of bond index on any sort of high quality something, it's yielding over 5% average yielding maturity. We haven't had that in a very long time. I mean, a decade plus. Right. So people would have killed for that yield in the 2010s, early 2020s. And there are a lot of people who just don't really get dunking sometimes US questions. Like I don't understand how bonds work. So I'm curious for high quality bonds. How do you think of the starting yield? Because the way that I see it is the stock market

2:05is governed more by emotions. Like what are people willing to pay for earnings? Like you don't know, it can change. Yeah. The bond market is more governed by math and number. So let me explain what that means. So if you're an individual investor and you see 5.2% yield and you buy that bond, you will get that number assuming it a doesn't default and be you hold it to maturity. But maturity for some of those bonds could be 10, 15 years away. And you're not going to get 5.2% a year. You're going to get whatever the coupon rate is every six months, let's say. And then at the very end, all of your money back and whatever else is necessary that shows you up to that 5.2%. Most folks buy bonds for ETFs, which is a great way to do it. It's more tax efficient. You don't have to buy thousands of things. I'm based on Q-Sips. It's much easier. But they rebalance. They're not maturing. I'm sure. Some ETFs do. But these ETFs is like a constant duration to the benchmark every day. You're buying every day. Yeah, they rebalance every week, every month, every quarter. Some bonds mature. They get that money. They reinvest, right? They have to go through some say, okay, well, the risk profile now means we should hold on to more cash

3:05than we invest today. Pricing isn't always what you think it is. Bonds don't trade on a lighted market in the same way that stocks do. Where you can say, this is the exact price of Apple at the MBBO today. You have to know where to find the bond. You're going to get a different price from different folks. Inventory, you know, a constraints will make your pricing change. And the platform you buy it on will have different fees associated with it. It's very little free bond buying on Schwab Fidelity, et cetera, in the same way you see on equities. So here's the big worry. And the other pushback I got. Because I was saying, listen, call me crazy. Five percent seems like a very good deal, especially relative to the last 15 years or so. That's a great deal, Rob. So the last 15 years. So here's the pushback I got from people. Well, listen, after you account for three and a half percent inflation and, you know, it's in taxes. It's not as great of a yield as it thinks. So what do you think at that pushback? Because my thinking is every market deals with inflation. Stock market has inflation, gold, whatever you buy, that inflation. But I think the counter is, well, inflation's the biggest risk to bond because you're getting a nominal amount back. So what do you think about that pushback?

4:06Say, hey, maybe this yield isn't as attractive as it looks at first blush. It's totally fair. Inflation is the scourge of your bond portfolio. The goal, though, is to get inflation down to 2%. What you saw today with 24 basis point hike. Another one signal by the end of the year is the desire for the Fed to get inflation back to its target. So if you believe that inflation is a three and a half percent, it's always going to stay there, then equities are probably a good way to go because inflation stokes equity values, over the long run. It's good for them. But that's not what we're going to try to do. The Fed, given its massive balance sheet, is actually now betting against you. If that's the bet you're going to do. If you're worried about inflation and you still want the return of bonds, the government has your answer. And it's weird to say, hi, I'm from the government, I'm here to help. But here they actually are. They offer tips. Treasury inflation protected securities bonds. Essentially, you buy a treasury from them and they give you the inflation rate to make sure you're compensated for that. There are a handful of other equities that bond issuances. It can try to mimic features of that, but they're very rarely. Well, and the other strange thing is that the Fed is raising rates to try to slow growth, right, to slow inflation. So it's not like we're going to be in this forever.

5:08If they succeed, guess what happens? If rates fall and growth slows, the current environment is not going to last forever. Exactly. And then that is you get the opposite because people will say, hey, if inflation keeps rising and yields keep rising, that's going to hurt my bond fund in the short term. That's the inverse related rates go up, prices go down. Exactly. But eventually, that could reverse. It not just could. The goal is it will. If it doesn't, the Fed will have failed miserable in its job. The Fed has never done that. And it has found a way to succeed in achieving these goals in the long run. You're going to see 25 base points. If we believe the dot plot, we're going to see 25 basis points at the end of the year or before the end of the year too. And the last six words of the statement that Kevin Warsh gave today and gave last time, the committee will deliver price stability. If there was ever a more clear declarative statement of we want rates, we want inflation rates to come down and we'll do what we need to do with interest rates to achieve it. That's it. Perfect. All right. Give yourself a plug, real quick. We have a plug. FM, we're talking about inflation. You got to take a look at our bill, RBIL. It's the only ultra short duration tips product on the market. If you're worried about inflation,

6:10but you still want to attract a return that 5%, you're going to get cash rates. So it's close it for today. But that's the place to be. All right. Thanks Alex. Appreciate it. Thanks so much. Thank you. Tell Barry's got to stop talking to people and get over here. You can switch. All right. Thank you Alex. Thank you. All right. Yeah. Hey. So up first today, we got one specifically for Barry. Next time Barry is on I have a question for him. I'm a very early career doctor. So I've got $200,000 in student loans and a mortgage. But I'm making a very good salary. Not to brag, but I inherited a vintage 1970s Omega dress watch. I love it and I've grown to really appreciate high end watches. I've got young kids. I'm basically a bogal head and I'm fairly dead of verse. At what point can I start to seriously look at spending on dream watches. I have a negative net worth, but hopefully not for long. That's from Sam. Okay. Doctor who's in huge debt, but he's going to be making plenty of money to make up for it. You're more of a watch guy than me. I buy like $100 watches. You know,

7:10you know, these things more than me. Don't get mad at me. My hot take is Rolex's aren't that attractive looking? It's not for everybody. You know, that's so subjective. I may have someone to stole my fleece vest for saying that. So the question is when can you spend on luxury goods? And like what point in your financial journey is that okay, when do you get permission? So, so one of the interesting things that have happened with a lot of my favorite dumb baubles collectible cars watches and you could take that sideways to art and wine and whatever is that they've become an asset class kind of. 2020 is like the crisis took off like crazy, right? Very much so because people had cash. They didn't know what to do. They were bored. There was no sports on TV. Let's buy a roly. Let's go buy a Porsche. Let's do like people just had to do something with their time and money. So my view on watches, which I've just always been fascinated

8:11by the concept of time. Philosophically, time doesn't exist. It's a human construct. There is no chrono to a college weed three in the morning discussion. But, but I've seen a seller before. Here's the thing about watches. Nobody needs a watch. Your phone is much more accurate than a hundred thousand dollar, protect or whatever you want to buy. So, if you're gonna go down that rabbit hole, you have to ask yourself why? Like, if you want to just flex and show off a Rolex, that's a terrible waste of money. Like these watches, we really haven't talked about this for the firm's tenth anniversary. I picked up four of these for me and my founding partners because I thought it was a significant gift that I had learned from a private equity guy who 20 years ago went out and bought 50 of these and put them in a safe. Every time someone becomes a partner, they get

9:15watched. So I love that idea. What model was that? So this is 2004 Daytona and I'll spare you the Rolex model number and then I engraved it with everybody's name. So it's not just an expensive bobble. It's a meaning of meaning. Just like the whole worker. You need to buy new ones. I'm guessing. Well, that's right. I got to go get four more. Sam said he inherited it. Right? Probably from maybe from a parent. Maybe a grandparent. Like, maybe the idea is he can give it to onto the next generation or something. So that, that's the, the next thing is you're gonna buy a pricey watch. Don't do it for the flex. Do it because you hit a milestone professionally or you turn pick a number 50, 60, 70, whatever. The big fat round number is 40. Rather than have him go out and spend 20, 25,000 dollars on a watch, I would much rather see someone like this doctor pay down that debt, especially if it's seven, eight, nine percent because student loan debt tends to be high.

10:21Focus on building his practice, building his real estate portfolio, his stock portfolio. There are a ton of watches for under 3000 dollars. That's under 2000. That's what I was going to ask you. What's the coolest watch for the price? So there's a handful of long jeans that to SO PRX. There's a run of things I like Glass Shooter, which has a range from, you know, a thousand dollars up to 10, 20 grand. Now, when you buy most watches, like you buy most cars, they're going to depreciate and value. But if you buy certain, like this watch is worth more than I paid for it four years ago, five years ago. That was in the point, right? That was never the point. If you're buying it as an investment. But his, his main question to me is, as long as you're paying down that debt and you're saving and you're putting money into the forum care, whatever, and you're like, you have that stuff, then spend your money on it stupid stuff if you want. I don't watch his shoes, clothe whatever. A hundred percent. You have your stuff taken care of. If you have a plan, if you've thought this out and you're sticking

11:25to the plan and there's still plenty of money left over, spend on what everyone has spent on. You want to go buy a Rolex for, so I have a few versions of different watches. The back girl is GMT. Ten years ago, there about seven eight grand. Now there about 11 grand new. If you could get on your authorized dealers list and buy one new for 11 grand, I got one two years ago. I don't know what it's worth today. 15, 16 in the middle of the pandemic. There were 20, 25. It got stupid. So you want to park a little cash and steal. If you buy it right, if you buy a car right, you won't lose money on it. Full market conversations as I was. Next question. I saw a cool Rolex other day, the milgoss. Sure. You have the whiteening bolt. Second. So you can buy that watch on the secondary market. It places like Crenno 24, a Haudenque, probably for 20, 30 percent below list. So they haven't retained their value because people aren't crazy about them. There's a run of things like

12:30the Explorer, but some of the classic ones and the precious metal ones move up to Everose, gold, titanium, white gold. They have a tendency to hold their value because half the value of the watch is $4,000, $5,000 an ounce gold. All right. Then we'll have a watch next episode. Up next, we got one from Steve. So according to the Pew Institute, about 51 percent of wealth in the USA is held by baby boomers. I'm a retired baby boomer of three years. I know you have talked about the K-shaped economy, but are there any stats regarding how retirement accounts from baby boomers continue to feed the market regardless of any geopolitical events since the GFC? Okay. So I checked his numbers. He's right here. So according to the Fed, $90 trillion out of 174 trillion in the USA is owned by the baby boomers. So add 20 trillion from the silent generation. That's probably going to go to the baby boomers. We're talking two-thirds of all wealth essentially. That's older people. So we've gotten the question for years. Are baby boomers going to crash

13:32the stock market on the side to sell? This one is asking, are they actually propping up the economy? Because you can think about it. What are the 40 percent of all homeowners have no more? They're just mostly baby boomers. Right. Right. So they don't have a lot of debt. They don't care about that. They have way bigger portfolios than they possibly could have thought. Way more home equity. So this kind of makes sense to me a little bit. So two big pushbacks to it. First, this reminds me a little bit of the cash on the sidelines claim. Oh, there's seven trillion and cash on sidelines. That's going to power the market. That's not how trading of stocks work. Right. I own a million dollars worth of Apple. You want to buy a million dollars worth of Apple. I have a million dollars worth of stock. You have a million dollars worth of cash. We do the trade. Now you have a million dollars worth of stock. I have a million dollars worth of cash. That's how sales work. So there's still the same million dollars on the sidelines. So that doesn't work. Second, if we all work with clients who do a state planning and are thinking about what they're

14:33going to do and the two biggest things they plan on doing with their money is A, at the stepped up basis costs transferred to their next generation. So their kids get round number, five million dollars worth of Vioo or Apple Amazon. The top 10% holds 80% percent of the stock market. That's right. Most of it's getting passed down. So when that gets passed down, the kids now have this giant stepped up value. There's no reason to hit the bid because they can let that appreciate and they're starting at a very high level. So if it was different, if the rules were different, you would have to liquidate that portfolio to pay part of the taxes. So it transfers with no tax hit until they sell it. I think people put a little too much into this. I tend to agree. Right. And then the other thing is we've been watching, I'm a big fan of intervivos transfers instead of waiting for a job that's Latin for while you're

15:34alive, intervivos. So rather than do this, do this from the, to Shay, rather than do this from the grave, hey, if your kids want to buy a house or if you want to pay for your grandkids college, why not enjoy them living with your money taking advantage of it? So we're making that point last week. So we're seeing a lot of that take place and that hasn't crashed the market. And then lastly, as much as it is always true, the oldest generation owns most of the wealth because they've had the longest time to work, the longest time to change the house. And millennials are now the biggest generation as a matter of numbers. Do you remember all the stories about the boomers are going to be the broken generation? Then the millennials are going to be the broken generation. Everybody we talk about the Gen Z, guess what? In the 2030s when the boomers sell their houses,

16:35Gen Z is going to buy houses too. So Gen Alpha though, they really are going to be there a little behind the eight ball because everything has gone up so much in price. And we're recording this rates are now a little higher than they were this morning because of the fed hike. Yeah, plus you have the boomers are de-rusting too, right? It's not all 100% equity portfolios. That's right. 40 portfolios. But they're not downsizing the houses yet. And until that happens, look, filing the financial crisis, we underbuilt single-family homes depending on which study you want to believe, three, four, five million houses, until that backlog is worked off, it's going to be a problem. So I'm not a fan of any of these giant. Oh, this is really just the stock market's a Ponzi scheme. When the boomers retire, Lohl crash, boomers were retiring 10,000 people a day. This has been going on for years. Remember, the boomers started 1946. Like I straddle, I'm in the valley between the Gen X and the boomers. So I've been hearing this nonsense for years. The boomers are going to do this. The boomers

17:40go, it hasn't happened. It's like an 18 year gap or something. My dad's at the top end of it. Think about it. The baby boom came up out when 40 million GI's returned from World War II, got to see their wives for the first time in how of many years. And nine months later, a lot of babies were born. By 1955, 1960, that whole boom ethos had faded. And yet we still call that generation boomers. Now, it would have a meaningful impact on the economy though. If every baby boomer decided, they were going to subscribe to the diet with zero thing instead of passing on their retirement accounts to their kids. If in mass, that became a thing. I don't know what's the appetite for stocks, houses, and whatever other crap they have that they want to sell. We're just rather than keeping the money in the market if it was essentially being spent on houses. And money has to go somewhere. Yeah. Right. And idle money has a tendency to find something. Yeah, ever walk around with some cash in the pocket. Guess what? Yeah. You know, idle money seems to find what's the old line?

18:43idle hands are the devil's work. It'll find a place to be spent. Yeah. I'm one more for a baby. Okay. Up next, we got one from Fred. My wife and I are in our mid 30s currently with a $1.2 million portfolio, anchored to VT and BND. Pretty good for the 30s. Yeah. We maintain a concentrated sleeve 15 to 20% of the portfolio in individual speculative stocks. I tell myself this satisfies the play money itch without endangering the core. With that in mind, do you think there's a meaningful long-term difference between deliberately keeping a small or moderate speculative sleeve and entirely and sticking entirely to index funds? Is there an intellectually honest way to run a satellite portfolio or is it almost always post hoc rationalization? Thanks for all you do. Okay. So in your book, you write about what you call a cowboy accounts? Cowboy accounts, exactly. What do you think is too much for a cowboy account? So I like the idea of 5% or less. So if it does well, it's meaningful, and if it crashes and burns, it doesn't affect your standard of living. If it's 3% or 5.5%,

19:45like I don't think it should be 30%, 20%, 10%. So the whole purpose of that behavioral hack is to scratch that itch for the person who goes to a cocktail party or a barbecue and loves talking about stocks. Now, admittedly, that's a bull market sort of vibe, but if that's what you dig, and if you pull aside enough money that you get to play with it, I have a playboy account, a cowboy account that I play with, playboy account is something different. I have a cowboy account that I play with, and the other day I looked out and I'm like, oh my god, this is like less than 2% of my portfolio. And when I think about my personal account, this is probably half of my mental bandwidth. Gotta get that up. So all you're trying to thinking about this little piece of your portfolio, but which is its purpose, because it means I am not screwing around with the real point.

20:45And this in Fred's question here, he has the index fund to compare it to as well. So if he's doing 20% of the portfolio, he can say, am I actually beating the index? Is it worth my time and energy? Is it worth the worry? Or do I need to write size it? So he has the offset he can look at. So if he's looking at it from a purely performance perspective, two things he has to keep in mind. The first is any given year, less than half of active managers beat their benchmark. Five years, it's 20%, 10 years, it's less than 10%. And by the time you get to 20 years, a handful of people and you know them, Buffett, Lynch, Danoff, you know, go down the run of that. So the odds are against them, but then you listen to what I think was Ken French from Dartmouth, and someone had asked the question about ARC, and he goes, we don't know if someone is lucky or skillful until they have a 20-year track record. So he could shoot the lights out for 10 years. Was he just lucky? There's been a lot of people who have picked him very good stocks lately. Is it there?

21:45Is it a skill or is it the market now? Or were they just overweighted in semis and they spent 10 years underperforming and now they're crushing it? So it's really hard to tell. So even if he beats the market for five or 10 years, you have to think of it on risk-adjusted returns, what's the bait of this stock? What is the best-case scenario? Does he really think this 20-200 grand of the million is going to turn into 20 million? If the odds are against that, you spend a lot of time and energy, and you're not getting a lot of back for the risk you're taking. I prefer to see people roll that down to a 5%. Every now and then I'll speak at some conference, some event, and a husband and wife will come up to me, and the husband will hand me a paper, and I'll look at he's got united health and he's got Microsoft and he's got Amazon, he's got like 50 stocks and really doing well. And the wife says, Calamie should be indexing. Look at the portfolio I go, how long you've been doing

22:46this? 40 years. Ma'am, your husband's the exception he's done. Really, I go, what you're doing in 87? And he goes, I was a buyer. 2000 buyer, 0809, big buyer. Ma'am, I would like to tell you this guy should be in VU, but your husband's doing damn well. That's every investor's dream is to be told that from the other thousand people who come up and hand me like, why do I see a lot of bankrupt companies? Why is there a five letter symbol with a queue at the end? He's like, I really don't want to sell it. No one brags about the losses. That's right. So, you know, what's the upside? What's the downside? You have to think about it in risk adjusted returns, not just, hey, I did really well last year. You're okay. Were you lucky or were you skillful? And that's really a challenging question for most individual investors to ask. Very appreciated. Yeah. So we're going to swap y'all for Bill Sweet. But by the way, I just want to point out, thanks for wearing my shirt. I had to wear my most Ben. That's very nice. I like it. Original vintage. So, that's very nice. Yeah. That's, so I like the

23:49texture. Yeah. It's it's as close to Ben wear as I have. Yeah. All right. Get Bill over here. We approved. All right. Bill Sweet. Beirah. All right. Let's bring in everyone's favorite Rolf IRA expert, Bill Sweet. Bill, welcome. What's shaking, gentlemen? Shaking and baking on the West Coast. We're having fun. Good to be in person. All right. We got questions just for you. All right. Up first, we got one from Josh. I've spent years actively trading inside Rollover IRAs that originated from old 401ks. Some positions held a few days or weeks. Others over a year. Rebalancing, et cetera. Always assuming my discipline around holding periods mattered. As they get closer to retirement, it recently hit me that when I eventually take distributions, none of that matters. It all comes out as ordinary income regardless. Have I essentially been wasting my tax loss harvesting instincts in a qualified account? And is there a broader lesson here about the types of investing behavior, psychologically and strategically actually belong inside

24:52qualified accounts since capital gains treatment basically disappears? It's a long one. Yes. So is he basically confused? Was he confused the whole time about how these work essentially? Right. My answer would be, look, dude, we can't go back. I cannot go back in time. I can't go back and enjoy my 20s. I can't go back to my kids are young playing on the beach. I can't go back to yesterday before I down three pints of Guinness. Therefore, what I would recommend is, look, look at the situation you've got now. And yeah, Ben, you're right. There's no capital gains. There's no income tax if everything's held in qualified accounts and that gives you a lot of freedom of maneuver. So you can move around. We moved around the country this week. We can move around our assets within an IRA. Right. So he was thinking about tax loss harvesting within this. Yeah, no. Ain't no such thing. That dog will not hunt. Yes. Yeah. The good news is no harm, no foul, I guess? Yeah. Exactly. Right. Exactly. So one of the things we talk about a lot at Reynolds, I'm a company man is we talk about asset location. Where does it make sense to own this specific asset?

25:53To me, Gents and IRA tax qualified account bonds, your paying ordering income anyway. That's a great place to hold bonds, a trend following mechanism, right? Like we have gold tender. We roll that out for our clients. It moves up down with the market. It treats in out. Tax qualified account is perfect for that, right? Because you're not paying gains as you go along. So thinking about where do you hold assets? That's the conversation I would have. Hopefully within an advisor to kind of structure what's going on here. Right. Yeah. So maybe maybe now that he's taking it out, there's another conversation to be had. Exactly. Exactly. So yeah, no capital gains and you're looking at an ordinary income. So that becomes something you can layer on in a distribution plan when the time comes. All right. Good stuff. And I didn't give Bill these questions ahead of time. Usually I do. Yeah. He's on a company. He's dropped him. He's a true pro. He dropped him on me on the beach. He's a pro. Even after going out to the bar. My any vice. What a guy. Amazing. We got one more question. Okay. Last but not least, by the way, John is doing a great job bouncing over there. Yeah, sure. People trying to walk into our shop. There's a million people going on right now. You hear? I totally walked you to tap it up to Duncan and John tackled me to the ground. Yeah. Yeah.

26:58At least 40 people have tried to walk into the shop. We have one more. Okay. Last but not least, we got one from Derek. I'm in my mid 20s work in tech and I'm considering hiring an advisor. My taxable brokerage account has grown to a size where I wouldn't want the market to take back what I've built. I'm confident in my allocation decisions, almost confident in my assertions. But they have certainly benefited from the current bull market. I avoid meme stocks and margin gambling. But when a big downturn comes, a seasoned advisor could manage downside risk more deliberately. This is where I'm stuck because of being wrong feels more real than ever. At the same time, I've learned more about markets, geopolitics and economics than I could have imagined by managing this portfolio myself. Red days make me more disciplined and grounded. If I get an advisor and free up mental bandwidth for career growth or my startup, I lose that ongoing education and skin and McGathey mindset. At what point does the firsthand experience stop being a value add? And do you factor this trade off

27:58into conversations with younger clients? I like this question. This is very good. He's thinking about this totally the right way. Very so far. Now, here's the thing. It doesn't have to be one of the other. Good advisors will and should educate you. That is part of the job. That's one of the reasons that content is such a big part of what we do. You can outsource the expertise, right? The tax planning, the estate planning, all that stuff. I'm using it because you're an expert. But you don't have to necessarily outsource the analogy of what's going on. We have certain clients who that's their whole thing is like, just handle. I want you guys to do this for me. I have other better stuff to do, other time constraints, but we have other clients who pepper our advisors and pepper our investment professionals with questions. Because they're really interested in this stuff. That's one of the reasons I love the markets. Because you do get to pay attention to all these other stuff going on. The geopolitics and the economics and what's going on with individual companies. It's really interesting. For me, it doesn't have to be one of the other. You can find an advisor who will use education as a big part of what their role is. Totally. I was talking to

29:04Nail Bear, who was with Future Proof until last year, jumped out to form an RA because he loves these conversations, Ben, that we're having with this client right now. The thing I keep thinking about, though, in the best case scenario, is you have a relationship with your advisor. They understand you and they understand the markets and you have confidence in what they're telling you. However, the thing gentleman always think about it might be apocryphal, but there's this fidelity study. The two types of investors that outperformed everybody else were who. They're two types that just kicked ass everywhere else. Was it men? Was it women? Was it old people, young people? What do you think? I'd say older women. Older women? It's not fair, Bill. I know the answer. Yeah, Ben knows the answer. So there was two types. One was people who had moved and they changed their address. So they weren't getting their account statements. Therefore, they weren't trading based on what happened to the straighter who moves this week. The second type was dead people. If you're dead, you're not trading your account. You just leave it alone. So paradoxically, activity is not a proxy for better returns. In fact, usually it's a detriment. So it's striking that balance to your point Ben, scratching that itch and a lot of people. They just want somebody to talk to about their situation.

30:06But if you have an advisor who's not educating you, you have to find someone else. Yeah, exactly. If you don't have faith in what they're telling you, yeah, it's time to shop around. But I'm going to be the exception of the rule. Oh, yeah. You're going to be the market. Yeah. But as Derek looks for advisors, that's the big, that's what I would tell them. Like I don't want to completely give up on this. I want to stay informed and I want you to help inform me. It's always going to be a mix. And just in my experience, Gents gets harder as you as you move on in age, right? Well, and we had a question last week. The more money you have, obviously, the more you start tacking on those zero, those drawdowns really hurt. But the other thing is that the market is dynamic, right? What we're talking about right now, the freaking drone swarms and your genetic AI, this is not the language that somebody, usually in their 60s, 70s, can speak, right? The world stops making sense to them at some point. And I do think having that cross generational conversation is extremely important, right? And it's not that the younger people have more answers, but I think they're more open to the world that's it exists, not what existed 20, 30, 40 years ago. Yeah. I don't even know what

31:06my Gen Zs are saying half the time. What did you just say right now? All right. Good stuff. We did it with the million people around. We're doing it live. Yeah. Remember, check out tropicalbrows.com for the new compound collab. These are not just wine shirts. They're polos. Again, men and women. People don't tell them the cold, but they did say the women said they want a more women fit with our clothes. We have the women's fit for this, right? It's true. Yeah. Very nice. Yeah. I'm wearing it because I'm full spelt. You can pull it off. I can't. You have a question for us. Ask the compound show at gmail.com. We'll see you next time. Thanks, guys. Thanks, everyone.