Ever make a money move in the heat of the moment and wish you could take it back? That’s exactly why a rock-solid Investment Policy Statement (IPS) might be your most underrated financial tool. In this episode, Joe Saul-Sehy, OG, and Neighbor Doug peel back the layers on IPSs—why they matter, how they save you from your own impulses, and the role they play in making sure your investment strategy actually sticks. Think of it as your financial GPS, keeping you on course when market turbulence makes you want to grab the wheel.
But it’s not just about avoiding panic-selling. The basement crew digs into the nuts and bolts of what a good IPS should include, from setting specific goals to handling liquidity needs and keeping your risk tolerance aligned with your lifestyle. You’ll also hear how rebalancing, governance, and regular reviews can transform your investments from “hope and pray” into a system you can rely on. Along the way, expect the usual SB tangents: a Joan Jett–themed trivia challenge, a TikTok tale about Apple Pay gone wrong, and more than a few moments where Doug forgets he’s not supposed to run the show.
By the end, you’ll not only understand how to create (or update) your IPS, but you’ll also see how it connects directly to building confidence in your financial plan. Whether you’re brand new to investing or a seasoned hand looking to sharpen your strategy, this episode delivers the blueprint.
- Why an Investment Policy Statement is your best defense against emotional investing
- How to set clear goals, liquidity rules, and risk guidelines for your portfolio
- The pitfalls most people overlook when drafting an IPS (and how to avoid them)
- Smart strategies for rebalancing and reviewing your plan without overcomplicating things
- A cautionary tale from TikTok that reminds us all to keep our guard up with payment apps
- Listener Q&A on stock sales and the quirks that come with them
Questions You’ll Begin to Answer During the Episode:
How often do you review your investments, and is it based on strategy—or headlines?
Do you have a written IPS, and if so, does it reflect your actual goals—or just what you thought they were five years ago?
What emotional triggers most often tempt you to stray from your financial plan?
Deeper dives with curated links, topics, and discussions are in our newsletter, The 201, available at https://www.stackingbenjamins.com/201
Enjoy!
Doug’s Trivia
- What was Joan Jett’s #1 song?
Better call Saul…Sehy & OG
- The mom of one young Stacker called in with a question about what happens to a share of stock when you sell it.
Have a question for the show?
Want more than just the show notes? How about our newsletter with STACKS of related, deeper links?
- Check out The 201, our email that comes with every Monday and Wednesday episode, PLUS a list of more than 19 of the top money lessons Joe’s learned over his own life about money. From credit to cash reserves, and insurance to investing, we’ll tackle all of these. Head to StackingBenjamins.com/the201 to sign up (it’s free and we will never give away your email to others).
Other Mentions
- Unpacking Two Big Ideas: Infinite Banking and Saving For Young Children (SB1729)
- Trading Rules: Strategies for Success
- How to Create an Investment Policy Statement
Join Us Wednesday
How would you like to work less, enjoy life more, and STILL love your job? Join us on Wednesday when we welcome Shemin Nurmohamed, who has lived that life and joins us to share with you how she created a well-rounded existence so you can as well.
Written by: Kevin Bailey
Miss our last show? Listen here: What Are YOU Worried About Financially? (LIVE From FinCon 2025) SB1737
Episode transcript
[00:00:00] Joe: It is Monday and uh, mom’s got the basement tour to park, guys, so check this out. I went and spent like, uh, 29 99 on a cup of coffee at my local coffee establishment. Seven Brew. I dunno if you got, you’re familiar. Oh gee. They have seven brew where you’re at. I don’t think they do. Where you’re at, Doug. We just have six. [00:00:20] Joe: We just have six brew. Six brew. Yeah. You made all the way to six. But Seven Brew is known for, uh, they take a little bit of coffee and they put it in a gallon of sugar. That’s the way it works. Oh, super good. Yeah, but because I’m all sugared up, we’re ready to podcast on a Monday. So let’s salute our troops guys. [00:00:38] Joe: Raise those mugs on behalf of the Men and Women Making podcast to Mom’s Basement and the men and women at Navy Federal Credit Union, who serve our veterans and our troops. Here’s to you. Thank you for keeping us safe. Let’s go stacks and Benjamins together now, shall we? Thanks everybody. [00:00:55] opener: They’re dogs and they’re playing poker [00:01:09] Doug: live from Joe’s mom’s basement. It’s my Stacking Benjamin Show. [00:01:24] Doug: I’m Joe’s Mom’s Neighbor, Doug. And on Friday’s show we mention creating an investment policy statement. A statement, why would you have one? What’s it all about? We’ve got you covered with a few simple steps toward better money management. Plus we’ll answer a question from one young stacker’s mom, who thought, you know, we’d better call Saul. [00:01:44] Doug: See hi and OG about individual stock. How does trading actually work behind the scenes? And you know, that’s not all. We’ll also share a TikTok minute sent from stacker Scott, and of course I’ll swoop in with a little mind bending trivia. And now here are two guys who think the best day to start saving is today. [00:02:06] Doug: The second best was yesterday. It’s Joe and OG. I might have [00:02:15] Joe: gotten that [00:02:15] Doug: mixed up. [00:02:17] Joe: Happy. Happy Monday Stackers, Doug does passive aggressiveness from mom. You should have started yesterday, [00:02:24] Doug: my bad. [00:02:24] Joe: But you know, today’s good enough. Today’s good. Happy Monday everyone. We’re so happy that you’re here. Sit back and relax because we’re talking, investing. [00:02:34] Joe: Sit back and relax. That’s my middle name. Yeah. [00:02:37] Doug: You can’t say that at the beginning of an episode, Joe. Ah, we’ll lose him for the whole thing. Ugh. And he’s, God. Hey Doug. How you doing? Fuck. I guess I’m giving the investment advice today. [00:02:50] Joe: You, you know that. Things are on a slippery slope when OG goes from his normal relax to incredibly relaxed two colds. [00:02:57] Joe: We got a great show. Invest investing policy statements on Friday’s show Live from FinCon og. You know, we said to our word, there may be a recession in the future. [00:03:09] OG: Someday promises. Promises don’t threaten me with a good time, [00:03:14] Joe: it’s gonna be great. At some point people may lose their jobs. At some point we may see the stock market go down at some point. [00:03:23] Joe: You heard it here first, [00:03:24] OG: someday between now and [00:03:27] Joe: infinity. When that day comes though, you don’t want to be reacting. You wanna be able to focus on keeping your job on, keeping the wheels on the bus. [00:03:36] OG: Yeah. Take advantage of the downturn. [00:03:38] Joe: Yeah, you don’t wanna react. So investment policy statement going today, back the truck up. [00:03:45] Joe: We read Doug’s investment policy statement. I think Twizzler is spelled with two Z. No [00:03:51] Doug: way. [00:03:52] Joe: Yeah, it’s unbelievable. We’ve got those, those those crazy people. One Z’s not enough for Twiz. [00:03:59] Doug: That’s when you know something’s really crazy. Look at this. I I’m drinking black raspberry. Yeah, two Zs in that too. [00:04:07] Doug: There’s two Zs in [00:04:08] Joe: raspberry at the LaCroix factory. Yeah, none of that sp stuff. The silent P is where they get you, right. [00:04:15] OG: I got my investment policy statement written right here. [00:04:18] Joe: Don’t, don’t do dumb with your money. [00:04:23] Doug: With my money there. It’s, I have a great story about that from college, but, uh, we’ll let that roll for right now. [00:04:31] Doug: Is that what you’re telling [00:04:32] Joe: the guy to tattoo parlor to put on your arm emoji? Yes. [00:04:34] OG: Yes. So you just keep looking at it. The life, you know, people put like little witty things from like the Bible or. You know, the, the like, wait, wait. [00:04:41] Doug: Witty things from the Bible. [00:04:43] OG: You know, like little, like a Dave Berry [00:04:46] Doug: column, but, but all that Bible hilarity. [00:04:48] Doug: Doug. [00:04:50] OG: Guys don’t think there’s witty things in there. I dunno. Thought, you know, got some zingers. Oh, Jesus man, he’s got some zingers. Looks like it’s time for a reread. I didn’t know [00:04:58] Doug: it was [00:04:59] OG: a comedy skit. [00:05:01] Doug: Matthew’s in the middle. My mom would be so proud. The middle of writing his gospel. They’re gonna [00:05:06] Joe: love this one. [00:05:08] Doug: But, um, were there rim shots in the Bible? I missed, [00:05:14] Joe: uh, the next verse of Psalms will make you LOL. [00:05:17] OG: So there I was at the Sea of Galilee. You won’t believe this. [00:05:24] Joe: And that’s how quickly we derail the trade investment policy statements today, everyone. Uh, we’ve got a couple sponsors though to make sure we can keep on keeping on. [00:05:31] Joe: We’re gonna hear from them first, but then take out, uh, your preferred writing device and get ready to actually make an investment policy statement with us on today’s show. [00:05:48] Joe: The horror story that keeps on giving on this show over nearly 15 years, OG has been the fact that every time the market has gone down, we have seen every single time the question, how do I react to this? Mm-hmm. Or, I’ve lost a bunch of money, I don’t know what to do. And I get a pit in the bottom of my stomach every time we read this over and over and over. [00:06:14] Joe: Now, I’m not gonna tell our stacker family and you won’t either, that with an investment policy statement, you won’t lose money. But why do you want one? What actually is an investment policy statement and why do you especially want it during a mark market downturn? [00:06:31] OG: I would say actually you won’t lose money because in my opinion, you only lose money when you sell. [00:06:36] OG: And if you have an investment policy statement that’s focused on your long-term financial goals and, and it’s behaving in a manner in which you would expect it to behave, then temporary market declines won’t force you to sell and therefore you won’t actually lose any money. But an investment policy statement is. [00:06:56] OG: The opportunity for you to think through what your belief system is and how you want to behave when things don’t go your way. When, when the market’s going straight up, it’s super easy to be an investor. It’s like, you know, it’s like, oh, I just uh, buy s and p stock and it’s great. Or I buy Nvidia this year, I buy international funds, or, you know, whatever. [00:07:17] OG: And it’s easy to do. The hard part is to be an investor when things don’t go your way, when your expectations. Are not matched with reality. And that’s really when people make the biggest mistakes in their money investing is because they don’t expect the outcome to happen. Right? I didn’t expect this to go down 20%. [00:07:35] OG: That’s a function of not knowing what you’re investing in and then not knowing what to do when it gets here is a function of not having a plan in advance. And so investment policy statement can be as succinct as one little card like this or it, it can, you know, be a couple of pages, but I encourage everybody to write down. [00:07:54] OG: For lack of a better term, your belief system around how you invest money. And then when you do that in a calm day, when you know, and you’re not emotionally charged up, and your belief system will be challenged when you’re down 20% or 30%. So don’t write it on that day, write it today. And then when you get there, you pull out your card and you go, well what? [00:08:12] OG: What did I say when I was saying, oh yeah, don’t do dumb with my money. Okay, so that’s, you know, or whatever. It helps make the decision process easier when it comes time to make decisions. [00:08:26] Joe: The story that always makes me sad is when somebody tells me that during a market downturn, they have trouble sleeping, that they get so worried about their money. [00:08:35] Joe: And what I love about the investment policy statement is that. You know your strategy, and I feel like the heartburn in that situation, OG, is really because you’re not sure what to do next. You’re not sure where you’re going next, and with your investment policy statements says, here’s exactly where I go next. [00:08:53] Joe: You mentioned earlier. Partly joking, partly not that maybe you quote, take advantage of the fact that the market is down. That can go in your investment policy statement. How low does it go before you take advantage of it? Where would that money hypothetically come from ahead of time? It’s almost like, you know, and coming up, I’m sure we’re gonna have this soon. [00:09:12] Joe: We have it almost every year near the end of the year, right? We, we talk about the financial fire drill. And we also have guests on who help us with the real fire drill. I mean, we all have homeowners insurance, but the fire drill in a lot of ways, I feel like og, that this is your financial fire drill. The investment policy statement is your financial fire drill. [00:09:33] OG: Yeah. I call ’em lifeboat drills. But basically it’s the same thing, right? It’s what am I, and this all feeds together in one thing. If you’re just investing for the sake of investing. If you don’t have a goal in mind, you’re like, well, I got a hundred bucks left over every month. I got a thousand bucks. I’m just gonna throw it in the market. [00:09:49] OG: Then, you know, whichever. The way the wind is blowing is how you’re gonna be making your decisions. When you have your investment policy statement, your investment plan is aligned with your retirement plan or your financial plan, and the market goes down 20%, that’s a factor that you’ve already calculated in your retirement plan. [00:10:06] OG: So the person who says, well, I can’t sleep well at night because you know, I had a million bucks and now I have 800,000. And you know, that’s making me really concerned, has not tied those two things together because a well thought out financial plan or a retirement plan already incorporates that as part of the, you know, the ebbs and flows of how things really go in the real world. [00:10:27] OG: This is why it’s always so interesting to me when people are like, if I just put in 500, you know, $500 a month at 12% for the next 30 years, I’m a gazillionaire. It’s like, well, yeah, if you can get 12% every single year exactly on pace, that works out really good. What happens if halfway through there you get a minus 40, which has happened twice in the last 25 years, you know, or a minus 55 or whatever happens when all of those things are tied together, it gives you a lot more confidence when things are not going. [00:10:54] OG: Exactly on that straight line path. And to your point, when you say, you know, when am I gonna make other choices? When am I going to rebalance, for example, when am I gonna deploy some excess cash? You know, I’ve got my six month reserve, the market’s down 30%. Do I want to drop that six month reserve to three month reserve so that I can get more cash? [00:11:13] OG: Every single one of us over every single time the market’s gone down in the last, you know, quarter century, if you’ve been investing that long, has said, the next time the market goes down, I’m gonna go all in. And guess what? It frigging happened in the middle of April. And what did everybody say? Well, not right now. [00:11:31] OG: ’cause those tariff things are crazy. So I’m not, I’m not gonna invest right now. Or it happened in 2022 and the market’s down 23% or whatever. People are like, yeah, maybe not this time because we don’t know how this inflation thing’s working out. [00:11:45] Doug: Oh yeah, I’m totally down for that Polar bear plunge. Hit me up next winter. [00:11:49] OG: Yeah, exactly. It’s a little chilly out right now. I didn’t think it would be snowing. Um, [00:11:54] Joe: I think a lot of people think that the investment policy statement is something that billionaires use and like the average person who’s out there juggling retirement, kids trying to pay off their mortgage, like this is something that I need. [00:12:06] Joe: I think specifically the reason why institutions use an investment policy statement, you look, a mutual fund manager will use it, or a pension fund manager will have one. And the reason I think that you should too is because OG, that you’re, you’re focused on so many different things. If you read about tariffs since you brought it up, you read about tariffs today in the newspaper, and then you, oh man, I should look at my portfolio today. [00:12:31] Joe: Like what’s the, what kind of a money manager goes on a random Tuesday. Oh, let’s just mix things around. I read something today through complete serendipity. Yeah. And decided to move things around. So. It helps you stay systematic when you’ve got a lot of stuff going on. And I think for that reason, this is where it’s not for billionaires. [00:12:51] Joe: It actually is for the average person out there who in a fit of despair later on without the IPS would go, well, what do I do? What the heck am I doing? Yeah. [00:13:01] OG: Ultimately, you’re trying to avoid the one big mistake. And the one big mistake is selling when the market’s down because you didn’t have a plan and there are. [00:13:12] OG: So many people that I’ve talked to, there’s so many people. I mean, maybe not the people listening to this show, but there’s a lot of people out there who sold out in the middle of April and when the market was down 17% or whatever it was and are going, I’m just waiting for things to calm down. Yeah. It’s not only recovered that minus 17, but then grown to new highs since then. [00:13:35] OG: If you would’ve just been in a coma, God willing, over that month, you wouldn’t have, I’m willing. You wouldn’t have known. Right. I mean, [00:13:42] Doug: it’s like, why can’t I ever be in a coma when [00:13:45] Joe: it counts? Exactly. [00:13:47] OG: But I say that obviously I wish I [00:13:49] Joe: would’ve been in a coma and not looking at my investments. [00:13:52] OG: I, I obviously say that tongue in cheek, [00:13:54] Doug: but Sure. [00:13:54] Doug: We’re so programmed. In every other aspect of our lives for pain avoidance. Yeah. [00:13:59] OG: Yeah. Fight [00:14:00] Doug: or flight. If the burner’s hot, you pull your hand away right away. And when you see all of that red on the screen or on your, you know, morning report that you’re getting about how far the, the, uh. Market went down, you’re gonna pull your hand away. [00:14:13] Doug: It’s so natural and we’re telling everybody not to do that. And that can actually just push down on that red hot burner. That’s what we’re saying. [00:14:21] OG: Well, I’m not saying to do that. I’m saying that if you have a plan already in place and you’ve already thought about the fact that this is gonna happen, this is back to psychology. [00:14:30] OG: Your brain doesn’t know the difference between imagination and reality. So if you’ve already said, in my brain, this is what I’m going to do when the mar like I, the s and p’s at 6,000 minus 20 is 4,800, so when I see the s and p at 4,800, I’m going to do these things. Then your brain goes, oh, we already did this. [00:14:47] OG: I already know what to do. Must follow directions. Yes, exactly. You know, and maybe it is selling some, that’s not the point. The point is that you’re following the clear path that you’ve already laid out, and it’s not reactionary. But rather part of your plan. [00:15:03] Joe: And the other cool thing is if you do something well, if something works, instead of just catching it that one time, now you can say, how does this go in my investment policy statement? [00:15:14] Joe: Like, how does, how do I make this a part of the machine of how I invest? We’re going to help you get started. Oh, gee. I like what you said about, this can be as simple as one sentence. It could be super, super complicated. We’re gonna give you an example of where to start. If you just go to stacky Benjamins dot com slash ips, I’ve put one together for you to start. [00:15:36] Joe: Just all the different, different pieces, and we’re gonna go over the core components. Again, you don’t need to include all of these, but I think these are all things that need to go into the consideration process. So the very first piece is the purpose of the investment policy statement and what your overall objective is. [00:15:57] Joe: Now, this is gonna be, as an example, I mentioned somebody in their thirties who is trying to save for their kids and they’re also trying to save for retirement. They’re juggling a bunch of different stuff. This goes back to the financial plan. My goal is to get to retirement at X Age. My goal is to save X amount of money for my children. [00:16:18] Joe: My goal is a second home, whatever the thing is, purpose and objective is the first line. Now, for some people, for mine as an example, I don’t have that, my investment policy statement, that’s part of my financial plan. But og, I still wanted to mention that because really that’s where it needs to start from. [00:16:33] Joe: It isn’t, Hey, I, I just go and get all crazy with my investment policy statement. [00:16:39] Doug: Can I jump in here? You said in a couple of examples you rattled off there, Joe, you did something that a lot of people avoid, and I found this all the time when I was helping companies create strategic plans and you, and we asked, okay, what’s the goal? [00:16:53] Doug: And it always started off super broad like, Walter, to make more money or, you know, or to, or to, you know, increase our market share. It’s, it’s so easy to be broad that. It’s not valuable when you’re that broad with your goal statements. There isn’t a lot of value because six months later when the stuff hits the fan. [00:17:13] Doug: It’s hard to use that as guidance. So I would encourage everybody when you’re making a statement, you could change it later. Don’t forget, you get to change it later. If you realize that that specific thing you came up with six months ago doesn’t apply anymore, or you’ve come up with a better goal. Uh, but, but be really specific and, you know, could be paid for college or, or it could be retire by 36, but put a number in there. [00:17:36] Doug: Don’t just say to retire, retire comfortably. [00:17:39] Joe: What I love about that, Doug, is that what I’ve always found with. Any investment plan, the more specific it is, the stickier it is, you’re more likely to follow it. So to your point on guidance, like, okay, if it’s to be comfortable, what the hell does that mean? [00:17:52] Joe: You know? Right. So, so how is that gonna change my, change my investment strategy? By the way, then a subset of those things then are gonna be, of course, your time horizon. You’re gonna know that because you know exactly when I’m gonna need the money. Uh, time horizon then helps you with your risk tolerance and your risk constraints. [00:18:08] Joe: But then the next piece, OG I think that’s important is liquidity needs. Right? If my time horizon changes, I know this is one of the risks you CFPs talk about that a lot of people don’t talk about what if the time horizon changes and I need to take the money out. Like what do I draw from first? Do I have a place to go get money? [00:18:28] Joe: I think a lot of people get really conservative ’cause they think they might need the money sooner than the time that they have allocated it for. I [00:18:35] OG: think in my experience for people that are savers, you know, there’s two categories of people. There’s people that are, you know, habitually, undersaving, which is obviously a problem. [00:18:47] OG: And then there’s people that are, you know, saving well, but habitually underspend. And there is no, you know, scenario like, you know, let’s, I’m thinking about the person who has the financial plan where you can throw all the stuff against the wall to try to break it. You’re like, well, what if inflation’s really high? [00:19:03] OG: What if the market sucks? What if, you know, the economy crashes and, and it’s like, oh, you’re still good. Right? And that happens a lot because generally speaking, people who are really good savers. Their nature are not really good spenders. You know, there’s only so much money every year and they save a considerable amount of it. [00:19:21] OG: So they build a nice nest egg, and then they’ve got this problem of, now I need to retire. Or I wanna retire, but I’m scared of the potential of this blowing up. And I think as long as you are cognizant of the different kind of timeframes, right? I got one to three year money, I got three to seven, you know, or maybe three to 10 year money. [00:19:40] OG: And I have 10 year money plus. Just think about those like waterfalls or those as buckets. You know, as one lowers down, you just gotta kind of refill it and there’s no timetable to do that. Some people choose to do that once a year. Some people love the idea of, Hey, on January 1st, I get all my money, it sits in my savings account. [00:19:57] OG: I spend it down on December 31, I’m out January when I start again, some people like the idea of, hey, every month I get a deposit into my checking account of, you know, 10,000 bucks and that’s my spend for the month. You know? So it depends on how your lifestyle is set up. If you think about it like, you know, two or three different buckets of of funding, you should never be surprised when you know, I have this big expense, right? [00:20:20] OG: Oh my gosh, I stupid, you know, HVAC went out. I need 30 grand to fix my hvac. Where’s that gonna come from? It’s like, well, you know, you should have one to three year money. There should be three years worth of it. So yeah, you gotta pull forward some of the end of year three, but that gives you ample time. [00:20:39] OG: To use your three to seven to backfill it, and you’ve got two and a half years to get it. You know what I mean? Like you don’t have to do something immediately to get there. And then that helps with the recession too. Back to the recession talk. You’ve got three years worth of cash sitting there and you go, well, I was kind of waterfalling this every single month. [00:20:55] OG: I was selling a little bit in each bucket every single month, and now the market’s down 20%. I don’t wanna sell anything. Well, you don’t have to. You got three years of cash, run that baby dry and then go fill it back up again. There’s no prescribed timetable on how you do this. I think you can automate it largely, but then maybe hit pause for a while. [00:21:15] OG: Maybe you’ve got a big expense, or maybe the market doesn’t pave the way that you want, or maybe the market behaves better than you want, and you say, well, I’m gonna use this as an opportunity. Put five years of spending here because I’m so far ahead of my financial goals right now. I can protect a little bit of it. [00:21:28] OG: No wrong answer here. [00:21:30] Joe: What I love about that stacker, I want you to just pause on this for just a second. The mindfulness of this, going back to that fire drill, you’ve pre-thought through what if the time horizon changes, how would it change? What are all the different things that could get in the way? [00:21:45] Joe: And then how would I put money in other pots so that I, the train can keep it rolling, right? The whole goal is to keep the train rolling down the track and what often happens. Because you’ve been so mindful. Not only is it sticky and you sleep at night, but also you do garner higher returns during the uptime. [00:22:03] Joe: You know why? Because you’re not hedging your bet that the time horizon’s going to change. ’cause you’ve thought through it, you know the ways it’s gonna change. You’ve thought about the different Black Swan events that could happen, and now the train keeps moving and now instead of getting 30, 40, 50% of the s and p 500, let’s say you could get all of it. [00:22:22] Joe: And now once again. S and P 500 really is not where we’re headed. And I’m gonna get back there in a second because before that, on my list here, I’ve got constraints and constraints like taxes. And I’ve seen some investment policy statements, og, where people are much more likely to let their winners run a little bit more in a taxable account because of the fact that, you know, the capital gains monster is gonna. [00:22:43] Joe: Eat into it more, where if I’m going to, let’s say in a market downturn, if part of my investment policy statement is to try to quote, take advantage of it, I can do that in my Roth IRA, ’cause I’m not worried about taxes. I’m also not worried about the fact that that making these changes just creates a mess that may or may not have any efficacy. [00:23:03] Joe: I’m gonna look at the role of taxes on my investments. And again, maybe your investment policy statement doesn’t need to, but that’s a spot that I’ve seen some people look at before. But the next, I wanna tie that into the next piece, which, what is your benchmark? Your benchmark is not the s and p 500. [00:23:20] Joe: Your benchmark is, I need to save X amount of money per month and I need to get. So much return. What is that return you need to reach this goal. So your benchmark is gonna be different for the kids fund than it is maybe for the second house fund than it is for the retirement fund. And so you kind of back into the benchmark og. [00:23:41] Joe: And then what I love about benchmarking this way too is you start realizing that what the market does is not as important as getting where you need to go. [00:23:49] OG: I think the stock market as a whole in the sense of watching, you know, if you like to flip on the nightly news and hear the little bit where say Dan rather, but he hasn’t done it forever. [00:24:00] OG: So you, somebody a little bit more contemporaneous like, uh, Tom Broco. Walter Cronkite. Yeah. Or Walter. You know, one of these news guys when you flip it on Peter Jennings, if, if you’re an a, b, C guy, when they had that little blurb in there and they say, you know, on Wall Street today the market was up. 17 points amidst positive trade rumors or something, whatever they say. [00:24:21] OG: I think that’s the level of interest you should have in what’s going on with your money. If you flip open the news or you on Apple News, or you got a newspaper and you see a little spot that has a green arrow, you go, huh, my money went up probably too. Or if it’s a writer, my money went down. Like that’s probably the level of interest you should have on a, on a daily basis, if even that honestly. [00:24:42] OG: As it relates to how you’re doing from a benchmark standpoint, absolutely. Your benchmark needs to be, what do you need to reach your goals? If your monthly savings amount is such that you need to generate an 8% rate of return to reach your long-term financial goals and the s and p averages seven this year, and you go high five, man, I beat the s and p. [00:25:06] OG: I’m at seven and a quarter. Woo hoo. Look at me. I’m an investment manager. Guess what? It sucks, bro. ’cause you didn’t, you’re still broke in retirement. Congratulations. You failed successfully. You know? And so using it as a flag that’s whipping out in the field to go, which way is the wind blowing right now? [00:25:26] OG: Okay, cool. Right? Like, that’s good enough because you’re gonna, you’re gonna generally behave in the similar manner. If you’re looking at your investments going, well, this investment, you know, went up 9.67% and this benchmark went up 9.87, so my 9.67 sucks. It’s like, well, but if your goal is eight, you’re blowing it outta the water. [00:25:44] OG: That’s what you need to focus on. What do you need to reach your goals and then use the indexes as a proxy for what’s going on. Big picture. [00:25:54] Joe: My favorite way to benchmark was to begin with the goal amount that I wanted and then work back every six months. Where do I need to be by that point? And so looking six months into the future, where do I need to be at that point? [00:26:06] Joe: And it can be then a mix of the market or my saving. And if I reach it, then I can decide. Do I slow down for the next six months? Do I speed up and take advantage of it so I can be Coast Fi to use the crazy term the kids use, or I could, uh, move the goal forward. Like there’s so many different things that I could do if I’m behind. [00:26:27] Joe: Then I look at was it the performance of my stuff? Do I have the wrong allocation, or is it just the markets were all. Underperforming, right? We had that inevitable recession and now I need to backfill. Now I need to figure out can I save more money? Maybe that was the problem. What I like about that is that it made it, it made my investment policy statement a mixture of two things. [00:26:51] Joe: Are my investments performing? Yes, no. And then number two is, is there more that I personally need to do, which brings up. The next part, which is governance. Governance is a, is a big word for how are you gonna actually look at this? And OG to your point, you look at the news and you go, oh, okay, this happened, but am I gonna look at it once a year? [00:27:09] Joe: Am I gonna look at it twice a year? A little bit more in depth? What’s the timetable between when I’m gonna look at my investments? And then the last one is of course, who’s going to do that? And I like this, OG and I, I’m sure you do. There’s one member of every family that loves this stuff. Maybe somebody else who doesn’t. [00:27:29] Joe: I do not like just the person who loves this stuff taken full responsibility. The other person just going, yeah, I’ve got no clue. Like one person’s living in fantasy land and the, and the other person knows everything. I think it’s gotta be, if you’re planning with a partner, when do we look at this together? [00:27:48] OG: I mean, yeah, there’s no guarantee that both of you wake up tomorrow if you’re in a relationship of some kind, you know, where you’re doing money stuff together. And if one person is the driver of all of that stuff, it’s like. It’s so stressful for the other person. Let, let me put it this way, the stress that that other person has while living, thinking about it, hails in comparison to the stress that that person will have if they have no frigging idea what’s going on in your dead. [00:28:19] OG: When you say to somebody, well, you know, I deal with that. My spouse don’t, don’t do the money. I’m telling you from experience when your spouse has to do the money, it’s way worse. Because they don’t even know what they don’t know. At least tell ’em, well, who to call. You know what I mean? And like where the accounts are and that sort of thing. [00:28:37] OG: Like they need to have some pretty clear understanding of. You know what’s next? [00:28:41] Joe: I’ve got the perfect example of this OG of a good friend of ours, Chris Luger, who uh, has the heavy metal money brand. Mm-hmm. And is one of the people who runs our Minneapolis St. Paul Meetup group. Chris has been very public about the fact that his ex-wife handled all of this. [00:28:57] Joe: He handled nothing. And when he went through his divorce og, he was like. I don’t know where anything is. I don’t know how to do any of this stuff. Yeah, so he’s a money geek because of necessity, because of the fact that all of a sudden it was thrust upon him when things didn’t work out the way that he wanted in his marriage. [00:29:16] OG: That’s an awful scenario too. It’s a thousand times worse if it’s somebody passes away, you know, suddenly and you’re trying to deal with Yeah. At least he [00:29:25] Joe: can call her and say, how does this work? You know? Or have the lawyers [00:29:28] OG: talk to one another. Right, right. You know, it’s like you don’t wanna be worried about you. [00:29:33] OG: Is the mortgage getting paid this month while you’re dealing with the stress of losing a loved one? You just can’t process all that, like something’s gonna get missed. That’s not the time and place. [00:29:46] Joe: What I like about also the number of times that you’re gonna check it, and I’ll tell you how mine works. [00:29:50] Joe: Mine is I look at it once every six months, which by the way, I think is even too often. It could be once a year stackers. I do it twice a year just because I’m a money nerd. I enjoy it, and whenever the market drops 15% from its previous high, I also then have a percentage of my portfolio that I will then reallocate and look for opportunities to do more. [00:30:12] Joe: The juice from that squeeze largely not worth it, but it’s in my investment policy statement because it makes me feel good og, to be contrarian, to know that, Ooh, the market’s down 15%. Instead of feeling the despair of the market’s down 15%. I’m like, oh, my investment policy statement’s about to trigger. [00:30:29] Joe: You’re like, Mr. [00:30:30] OG: Burns, you’re like, eh, [00:30:33] Joe: come down a little more Mr. Market. Yeah. Good stuff there, but I think once a year is enough. I know oj, you’ve looked at all these studies. [00:30:41] OG: Rebalancing once a year is the most efficient. There’s no evidence to suggest rebalancing more frequently than once a year is worth it. [00:30:49] OG: I know a lot of people think six months, like you said, which is fine. I think you’re gonna find that in most six month periods of time though there’s nothing to do and so all you’re doing is. Razzling yourself up. [00:31:02] opener: Yeah. [00:31:03] OG: For nothing. And depending on what six months you pick, right? Like you could pick like, what if September is one of your six months? [00:31:08] OG: Generally speaking, September is kind of a crappy month. You know, like you just put yourself in a bad mood. Like, you know, [00:31:15] Doug: I would say you also have to design or or define some kind of plan of action for what are you doing when you look at it every 12 months or every six months. Because if you look at it the wrong day and think, sell it all because holy cow, it’s all gone to hell in a hand basket. [00:31:30] Doug: You’ve completely undermined. The whole point of trying to step back and be patient. So you gotta say, okay, if I see these indicators over the course of the previous six months, then maybe I take action. But you can’t just pick a day ’cause there’s a good chance you pick the wrong day. [00:31:49] Joe: So the way that mine works, Doug, people know I love using the efficient frontier. [00:31:54] Joe: I have this allocation by percentage of. This percentage is in X is in large company stock. This percentage is in small company stock, this percentage international, and so on. During that six month rebalancing, I’m just tweaking back to those percentages. I’m not moving money out wholesale, I’m not moving money in wholesale. [00:32:16] Joe: I’m just tweaking to those percentages. If it goes down 15%, if the market’s down 15% between those six month periods. I will then do that same thing again, so for people to get an idea of Exactly, Doug, what you’re talking about. That’s what my investment policy statement looks like. I always [00:32:33] Doug: knew you were a tweaker, [00:32:36] Joe: so let’s go over the pitfalls. [00:32:38] Joe: Doug brought this one up. Being overly vague with your objective is a huge pitfall. Being too rigid for changing goals. I also like Doug, what you said earlier, you can change it. You can to don’t hang onto it because it’s in writing. Feel free to change it now. Don’t change it like people change diets. [00:32:55] Doug: I was gonna say, have a damn good reason to change it. [00:32:57] Doug: Yeah. Not just ’cause it’s not working for you at the minute [00:33:00] Joe: that diet doesn’t work. No, Doug, it’s because you won’t put down the donut. It doesn’t work. Badass. Not thinking about and, oh gee, I liked you walking us through this. Not thinking about all the liquidity events that could come up. The cashflow events, picking bad benchmarks like the s and p 500 drives us. [00:33:17] Joe: This is why it drives us crazy stackers. And people go, well, the s and p 500 did X and I didn’t do that. SP 500 has nothing to do with your goal. If your goal is in five years, you should have no relation to the s and p 500, or at least very little looking at then what your benchmarks would be. How much money for me, I like how much money do I need to be at every six months on my way to my goal. [00:33:41] Joe: Then clearly defining roles and communication and making sure the person that isn’t in love with this isn’t a money nerd, is involved and knows, at least on a cursory basis, guys, exactly what’s going on. So, best practices, make it personal, write it down, keep it simple. Build in these regular reviews, have those on your calendar, and get good clarity on who does what. [00:34:02] Joe: So we’ll have all of that at Stacking Benjamins dot com slash ips. Nice job guys. Good work, og. Oh, well thank you. He didn’t do shit. Uh, so go download your stackers. This is what we wanna hear from you. Stacking Benjamins dot com slash voicemail. If you do this, tell us how you set up your investment policy statement, what it looks like, how it works, what struggles you had. [00:34:29] Joe: We’ll take your questions. We take questions. We’re gonna do a question here later in the show, but we’d love your questions about investment policy statements. Let’s, uh, let’s help each other get this done. ’cause I think because OG a recession is coming. It’s a recession. It’s, you heard it here first. [00:34:44] Joe: There will be at some indeterminate time in the future, a recession. Dun, dun dun. We, we wanna be, we wanna be ready for it. I, [00:34:52] opener: I, [00:34:52] Joe: I, I. Alright Doug. It’s a big birthday today, I think, what’s on tap with today’s trivia? [00:35:01] Doug: Hey there stackers. I’m trivia punk rocker Joe’s mom’s neighbor, Duggan. Today’s the birthday of one of the biggest bad asses in rock and roll. A woman whose poster Joe’s mom is hanging on the wall right now. The one and only Joan Jet, the godmother of punk rock was lead singer of the Runaways before forming her own band. [00:35:20] Doug: I feel like I need to do this whole thing in Disc jockey voice. The godmother of punk rock was lead singer of the Runaways before forming her own band, the Black Arts. Now, could you do [00:35:31] Joe: the, the, the old Casey Cason. The godmother of punk rock was Lead Singer [00:35:35] Doug: Leno before forming her own. Keep your feet on the ground and keep reaching for the Stars. [00:35:41] Doug: Okay, let’s refocus here. She stacked tons of Benjamin’s with her debut album, which included the hit Bad Reputation, but her biggest song of all time was on her 1981 Follow-up album. What was Joan Jett’s number one song? I’ll be back right after I get Joe’s mom down here to clap out the lyrics with me. [00:36:07] Doug: Hey there, stackers. I’m punk rock trivia creator and guy who doesn’t care about his reputation in the neighborhood. Joe’s mom’s neighbor, Doug, we’re celebrating the birthday of Rock and roll, queen Joe Jet today by asking you which of her songs was her biggest hit of all time. Of course, it was none other than crowd pleaser and Stadium rocker. [00:36:27] Doug: I love rock and roll. Sing it with me now. [00:36:31] Joe: Put another dime in the jukebox, baby. Oh, that’s not the version, by the way. Now wouldn’t it be instead of a dime in the jukebox? Wouldn’t it be put another like dollar 50 in the jukebox? Yeah. [00:36:42] OG: What’s a jukebox? Put [00:36:43] Doug: your Venmo request in the jukebox. Baby doesn’t have the same ring anymore. [00:36:49] Doug: No, not really. And now back to two guys who love drips, but have absolutely no drip unless Old Navy khakis [00:36:57] Joe: count. Joe and og. OG does have that, uh, that urologist situation. [00:37:04] Doug: Oh my God. See, I’m trying to keep it relevant. Dividend reinvestment plans and then keep it, you know, so that the, all of our young audience knows what we’re talking about with Drip. [00:37:15] Doug: And you go straight to pivot. Bad biological joke. It’s [00:37:18] Joe: time to pivot. Time to pivot away. Don’t look over there. Look over here, everybody. Time for our TikTok minute. This is the part of the show where we shine the light on a TikTok creator who’s either. Done something brilliant or air quotes brilliant. Oh gee, we have a cautionary tale today. [00:37:35] Joe: Hmm. Do you think this is a, and stacker, Scott sent us this cautionary tale. Do you think that he sent us something brilliant he saw on TikTok or this case, Instagram reels or, yeah. Not so brilliant. [00:37:46] OG: No, it’s fantastic. Very cautionary. Everybody should pay attention. Wow. [00:37:50] Joe: What He never says this, Scott sent us a young stacker who may have, uh, misinterpreted the directions. [00:37:59] TikTok: You use Apple Pay? Honestly, just be so careful. Um, this is a little embarrassing to admit, but if this could help one person, then I’m really willing to share what my experience was. Um, I’m just gonna lay it out like this. When you use Apple Pay, that’s real money. That’s true American dollars from your credit card. [00:38:18] TikTok: If you, if you have your credit card connected. That’s where the money is being sourced from. It’s not like a special form of Apple pay Apple dollars. Why? They don’t just say, this is real money while you’re paying. I don’t know, because I thought that I had accumulated a bunch of Apple dollars to use for Apple pay by, you know, spending so much time on my phone, uh, giving my dad a. [00:38:40] TikTok: Freely and willingly to any place that ask, there’s no way is real. They say, are cookies okay? I say, yes, yes, yes. Because I thought that’s how I was getting prize is getting rewards getting Apple dollars. So I didn’t think that was real money till I checked my credit card bill. I I, I’ve been spending money like I’m a frigging millionaire. [00:38:57] TikTok: I, I got hair m I’ve straight hair. My hair doesn’t even hold Mose. I call Apple to straighten things out. I look at, I, I please speak with Mr. Steve Jobs. They go, he’s no longer with us. Can I speak to Mr. [00:39:09] OG: Totally fake. This is why the internet is such a waste of time and energy. [00:39:15] Joe: Oh, come on. I thought [00:39:16] OG: it was [00:39:16] Doug: very entertaining. [00:39:17] Doug: That’s a long, long way of saying you were wrong because before we got into that, you said this was gonna be awesome. Exactly. [00:39:22] OG: But it’s just, see, see what happens. I try to make you guys happy and say, oh, the social media is awesome actually. So great. And then just fake news like that is everywhere. And it’s like, that’s so, I don’t even understand why people, like what’s the benefit? [00:39:41] OG: For that person. I mean, how many did she get a bunch of likes or something? Like a bajillion? Yeah. [00:39:48] Joe: How many? Uh, yeah. [00:39:49] OG: Fantastic. And how much is that worth? How many Apple dollars does she get for each, like [00:39:53] Joe: 24,200 comments? Most people saying this is fake, so No kidding. 1.1 million people watch this video. [00:40:01] Joe: That’s great. 1.1 million. That’s great. And how many apples dollars did she get for [00:40:04] OG: that, [00:40:05] Joe: right? 695,000 people gave it a heart. Oh gee. Should I give it a heart? Have a heart, [00:40:11] Doug: I think. Aren’t we obligated to? We’ve just given her another million just by talking about it. [00:40:15] OG: Watching, uh, the Ted Lasso show that you guys wa I know. [00:40:20] OG: Watched a lot of, I’ve decided I’m very much like Roy Kent. Wow. It’s, what is he on [00:40:27] Doug: season three, Doug? Before he figures out on him. Everybody else listening knew you were Roy Kent years ago. [00:40:34] OG: My general answer of all this is. What he would say [00:40:38] Joe: when our stackers watched episode one. They’re like, this Roy Ken, guy’s like og. [00:40:42] Joe: That’s, that’s what they said. Yeah. Uh, Scott, thanks for, for, uh, thanks for nothing, Scott. Scott, thanks for sending that in and for trolling our own OG with that. For our next segment, somebody said, you know what? I better call Saul. See? Hi and og. This is a stacker whose voice, Doug, I think you may recognize and I recognize, but this person would like to remain anonymous, but anonymous. [00:41:08] Joe: It’s great to hear your voice. I hope you’re doing well and well. Let’s say hello to Anonymous who has a question for her son. [00:41:17] caller: Hi, Joe and og. I’m a longtime listener and I’m sitting here with my 10-year-old son, and we’ve been talking about stock investing as he gets older and wants to learn more about this. [00:41:27] caller: One question came up that I didn’t have the answer to. When someone sells an individual stock, what happens to that stock? Does the company buy it? Does someone else buy it immediately, or does it get put into kind of a shelf or a holding until someone else is interested in that stock? Appreciate any guidance and looking forward to learning more with my son. [00:41:46] Joe: Thanks for the question and, uh, glad to hear that stackers out there educating young stackers all the time. All the time. Uh, OG somebody sells their stock, does it then go, is it like the showroom and somebody returns at Best Buy the, the thing they didn’t want? It goes and waits for the next person. How does that, how does that work? [00:42:06] Joe: It’s [00:42:07] OG: like an Amazon return. Yeah. It’s just, you get credit for it right away, but you don’t have to like send it back to Kohl’s for like a couple of weeks. But, and then when you do, you get all your money back. [00:42:15] Doug: You have to go to the UPS store and show ’em that stupid QR code such a hassle [00:42:20] OG: that to you is a hassle versus having to ship it back yourself. [00:42:24] Doug: Show up at my doorstep. [00:42:26] OG: Okay. I mean, you, you can have them do that. You just have to package it and pay for yourself. I gotta pay for it. Alright, so let’s talk about stock. Stock is the ownership of a company, right? So when a company is formed, even a small company like Stacking Benjamins, we have shares of stock. [00:42:43] OG: And right now there’s two. Joe has one and OG has one, right? Doug, sorry, we only made two. We were gonna give you one, but we ran out. [00:42:52] Joe: Look at that. Look on Doug’s face. [00:42:53] OG: I know. My bad. That’s on me, coach. That one’s on me. Way [00:42:57] Joe: to bring that up, OJI. [00:42:58] OG: Yeah, that’s all right. And so big companies like Apple or something like that, they might have millions of shares of stock, and so they’re taking their company and saying, we need to divide this into increments that are sellable to other people, right? [00:43:11] OG: Because the, the value of Apple is a trillion dollars or $5 trillion or whatever. If they just said, well, it’s just really these three people that own it, well, then each share would be worth. A trillion dollars or something, no one would be able to buy it. A stock is the ownership of a very small percentage ownership of a company, and the, the company has issued those number of shares and they are public for sale. [00:43:34] OG: And so people, different people, different types of people can own those. So an individual can own the stock. A company can own it, a mutual fund, the company itself can own its own stock back. That’s an option. And so when you hit sell on your brokerage window and you say, I’m gonna sell one share of Apple, someone else is also simultaneously hitting by. [00:43:55] OG: There are people and. Organizations that facilitate that transaction. And most of the time, this is electronic these days, 99.999999% of it is electronic to facilitate, Hey, there’s one stock for sale. Oh, there’s one person that wants to buy it. Bang. That’s electronically decided what the fair price is for they wanna buy and that you wanna sell, and boom, that’s how that transaction happens. [00:44:18] OG: On occasion when there’s not any buyers, then there’s market participants who are out there saying, we’re gonna own, we’ll take ownership of this. If there’s a situation where there’s not any buyers, so there’s a, [00:44:30] opener: a bunch of people that wanna [00:44:31] OG: sell, not enough buyers, called market makers, and they will say, we’ll, we’ll facilitate that just to keep orderly operations going so that we can have the liquidity. [00:44:42] OG: That’s really all there is to it. That doesn’t really, it doesn’t go on a shelf. It doesn’t get deleted, it’s not gone. It’s uh, it’s just moving from one person to another. So the day you think it’s a sell is somebody else’s day. They think it’s a buy. And that happens in a microsecond a hundred billion times every day across. [00:44:59] OG: The entire world, uh, of all the publicly traded companies in the universe. So it’s so, [00:45:04] Doug: so 17,005 people wanna sell, only 17,000 wanna buy. So the extra five left over there are these angelic people called market makers who’re like, yeah, I’ll hold onto that for you. Until, well, they actually [00:45:17] Joe: get a lot of upside, which is they get to sit on top of the stock and see the good days as well. [00:45:23] Joe: And so they get to load up generally on bad days when people don’t wanna buy. When people don’t wanna buy, but when that stock goes up, these people are able to make a killing. So, so [00:45:32] Doug: gimme an example of who this, I mean, is this the Goldman Sachs or like hedge funds or these, those kinds of large people able to, to swing those large amounts of organization. [00:45:40] Doug: In the old days, it [00:45:41] OG: literally was a person, a dude, one guy, [00:45:43] Doug: they just raised their hand and said, the guy, that’s me. I’ll take it Overage. Yes. Yeah. [00:45:48] OG: Send it my way. Ah, you know, Doug, it’s so electronic now that, you know, you say, well there’s only, there’s five shares that weren’t, those shares would just. He offered at a lower price. [00:45:58] OG: You know what I mean? Like there’s gonna be the transaction at which somebody, ’cause if this guy really wants to sell, so I wanna sell it for a hundred, and this guy goes, I’m only buying it for 80, then how bad do you wanna sell it at a hundred? I really wanna sell it. Okay. Well, will you take 95? Yeah. I, I really want to get rid of this. [00:46:15] OG: Will you take 95? No, I’ll take 90. Will you take 90? I really want out. I’ll take 90. Or they go, I’m not taking 90 for this. I’ll keep it at 90 and I’ll sell it some other day. Cancel my transaction. [00:46:25] Joe: And that’s why when you go to sell, you’ve got three different options. Sell at the market. And the market just means it says on my screen, is trading at a hundred. [00:46:35] Joe: Let’s say if something happened between the time that you made the decision and the time you hit sell and the market goes into free fall. You might only get $95, you might only get $90 for that. Yeah. You’re [00:46:45] OG: saying gimme whatever the, whatever the price is when, when I hit the market. Yep. [00:46:49] Joe: The second thing you can do is you can have a limit that is a trigger, meaning that if this stock goes below a hundred dollars, I wanna trigger a sell. [00:46:58] Joe: And then it becomes a market order. So then let’s say the market starts, you know, it’s, it’s at 102 and you put your cell at, uh, a hundred dollars. The market starts going down. And it’s a hundred. You hit sell, but then it’s a market order and it fills at what again, whatever the price is, market in free fall, you might get 50. [00:47:18] Joe: Doesn’t ever happen that way, but, [00:47:19] OG: well, not, not true has happened. I know somebody personally that that happened to can happen, but [00:47:24] Joe: doesn’t [00:47:25] OG: happen at a normal, got completely wiped out out of a hundred thousand dollars position because he did a market market order. [00:47:32] Joe: And then the third button that you have is, when it gets to a hundred, I want sell specifically for a hundred. [00:47:39] Joe: And if it’s a fast moving market, I don’t want to sell, I wanna just hold until it gets back to a hundred. And you can specify the amount of time that order stays open. Mm-hmm. So, og to your point, a lot of the time when somebody places a market order, there’s a lot of standing, what are called limit orders out there for either above or below. [00:47:57] Joe: So if you decide to sell. At the market and it’s at a hundred, but things have been trending up and the next buyer is at 101. You might get 101, you might get 102, might get something better or worse when you do a market order. [00:48:09] OG: It’s really hard to comprehend exactly how much of this happens on a minute by minute basis. [00:48:15] Joe: I’m glad you said that. ’cause there’s this book in the nineties called Trading Rules. That is, it is. I’ve had stackers Pick this up and read this at your own. Read this at your own peril. ’cause it is kind of a boring book. But I also find it fascinating, og, which is that the human brain cannot comprehend just how much liquidity there is out there. [00:48:32] Joe: Yeah, just the huge number of shares to trade [00:48:36] Doug: even easier and better than reading a book. Go back another decade, Joe to the eighties and just have everybody watch trading Places. With Eddie Murphy and Dan Aykroyd. That’s all you need to learn about how trading happens, right? Well, you’ll get a great [00:48:49] Joe: cartoony look at it, which I like. [00:48:51] Joe: Also, the movie, wall Street and Wall Street, by the way, when they’re trading Blue Star Airlines, if anybody remembers that old movie, you see the market maker OG in that movie? Mm-hmm. Like the market maker, all of a sudden there’s a bunch of people standing around. One guy. And that’s the market maker guy that you were talking about. [00:49:07] Joe: Nobody wants it. Nobody wants, all of a sudden everybody’s telling him, I wanna buy from you. I wanna buy, nobody’s selling, everybody’s buying. So now this guy’s gotta give up his position because he’s the market maker on the other side. And then three minutes later, they’re all trying to sell it back to him as Gordon Gecko is trying to manipulate this, uh, this market in the [00:49:23] OG: allegedly manipulate. [00:49:25] OG: Well, and don’t ruin it. Spoiler alert. [00:49:29] Joe: He may or may. Well, yeah, I can’t, you know, if you even seen Wall Street by this time. Is it on me? Is it truly on me? [00:49:37] OG: Maybe Charlie Sheen’s involved. Who knows? Wait for the end. See how that, I’ll [00:49:40] Doug: just tell you now. He’s dead the whole time. [00:49:43] OG: Oh boy. [00:49:44] Joe: I heard by the way that this new Charlie Sheen documentary is really good from people I had dinner with the other night. [00:49:48] Joe: There is one that the Charlie Sheen documentary is, oh boy, super, uh, him telling his own story. And, um, anyway, sidetrack there. [00:49:57] OG: Side Quest. Side quest. Complete, [00:49:59] Joe: anonymous. Great to hear your voice. Glad that you’re, you’re helping our stackers, our young stackers. Understand this. And you know what? We will, uh, we’ll have Gertrude get in touch with you and send either you or the young new stacker. [00:50:12] Joe: Uh, some swag. Thank maybe both. We should probably do both in this one, don’t you think? Yeah. [00:50:16] OG: No, anonymous is. You got a little demerit there. [00:50:22] Joe: Yeah. Stack Benjamins dot com slash voicemail. If you would like to, uh, ask your question as well. We, we’d love taking your questions and coming up in the next few weeks we’ll have just a complete letters episode so we can try to stay. [00:50:35] Joe: As close to the time that you send it in as possible. Alright, that’s nearly it for today. Uh, Doug, we’ve got what we call the back porch. We’ve had a lot of community today with Scott and Anonymous and the big challenge to create your investment policy statement, but what else we got on the back porch? [00:50:52] Doug: Yeah, Joe, we got a call from stacker, Jeff, who wanted to, uh, have a talk with us about our Labor Day episode. Uh, oh. Let’s hear [00:50:59] Joe: what Jeff’s got. [00:51:02] caller Jeff: Hi, guys. Uh, this is Jeff. I just wanted to say thanks for a great, uh, labor Day show. I mean, both Tony and Chuck deserve a show all around it. It was like getting two shows in. [00:51:12] caller Jeff: One, uh, terrific guest. I, I like all your shows, but this one was really special, so keep doing what you’re doing, [00:51:20] Joe: Jeff, that’s very nice. Thank you so much. Why can’t everybody be like Jeff? Well try not to take it personally that he’s like less of you guys. Yeah, more of them. [00:51:31] Doug: That was weird. I never heard my [00:51:32] Joe: name in that whole call. [00:51:34] Joe: That doesn’t, that’s, we do work really hard to have the people that come on our mentors be people that are gonna be. Very helpful from a bunch of different, uh, different places. And these two for people that missed our Labor Day episode, we’ll have a link in the show notes. But, um, Tony talked about life insurance and this idea of velocity banking and why og you thought we were spoiling Wall Street? [00:51:55] Joe: You wanna do the big spoiler here, why Velocity banking might not work. Tony’s a life insurance expert, uh, a certified life underwriter. Walks us through exactly how permanent life insurance works and why it might not be a great idea to bank with it. And then Chuck is now becoming a grandfather. Of course. [00:52:14] Joe: Chuck from The Money Life with Chuck Jaffe Show. On every Halloween here with the most hilarious and, uh, complicated Halloween game Yeah, every year. But he also is great at thinking forward about his family and creating a legacy and, and helping his grandchild get started with investing even as they’re just born. [00:52:34] Joe: So if you wanna help the next generation by getting them started, Chuck Jaffe walks through how to invest for a very young child or grandchild. That’s gonna do it for today. Thank you so much, stackers for hanging out with us the last hour. Coming up on Wednesday, man, we’re diving into more fun. Speaking of mentors, we’ve got a great mentor for you, but I’m gonna leave it a surprise. [00:52:56] Joe: Doug. Woo woo. So instead of previewing Wednesday show that you just have to listen to Doug instead. Why don’t you tell us what are the three things that should be on our to-do list today? [00:53:07] Doug: Sure thing, Joe. First take some advice from our main topic today, looking to see your portfolio perform better over time. [00:53:14] Doug: Rather than responding when news or bad markets hit, create an investment policy statement and work that machine. Baby, you’re much more likely to have money available when you need it than if you’re making it up as you go. Second, take some advice shared by Stacker Scott, apple Pay. Yeah, allegedly. That’s real money. [00:53:34] Doug: We’re still looking into it to confirm, but the big lesson. Don’t let Joe’s mom hear you call Joan Jett, the queen of rock and roll. Apparently if you want free podcasting space in the basement, we need to acknowledge that there is only one queen and it isn’t Joan Jett. Happy Ma. Hey, let’s meet back here on Wednesday and keep this momentum going, shall we? [00:53:58] Doug: We’ll welcome both you and certified financial planner, Jeremy Kyle, who will lay out how to devise your retirement plan in five simple steps. This show is the property of SP podcasts, LLC, copyright 2025, and is created by Joe Saul-Sehy. Joe gets help from a few of our neighborhood friends. You’ll find out about our awesome team at Stacking Benjamins dot com, along with the show notes and how you can find us on YouTube and all the usual social media spots. [00:54:30] Doug: Come say hello. Oh yeah, and before I go, not only should you not take advice from these nerds, don’t take advice from people you don’t know. This show is for entertainment purposes only before making any financial decisions. Speak with a real financial advisor. I’m Joe’s Mom’s neighbor, Duggan. We’ll see you next time back here at the Stacking Benjamin Show.
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