00:00The idea is to be able to retire in your 30s, 40s, and 50s and live your best life.
00:04But I'm sure there's traps that people fall into when they pursue fire at all costs.
00:09Yeah, I would also say, though, the investors that we work with and the clients we work with,
00:13they are in specialized industries. So we work with lawyers, we work with professional services,
00:18asset managers, pre-IPO, post-IPO companies. A lot of our clients, they like to work.
00:24Like, this is part of, like, they enjoy their profession, they're ambitious.
00:28And so what we see is actually something different. They want to work longer.
00:31And even in retirement, there's a great organization that's called Luster,
00:36where it's founded by very successful women. And what they do is they say, like,
00:40this is actually, like, I'm going to live my best life in retirement. I'm not fading into the
00:44background. I'm not giving up on my intellect and professional ambitions. I may do something
00:48different with my time, but I'm still very active and very busy.
00:51What I see day after day, this is a beautiful quote from Citigroup and Kristen.
00:55Let's bring it up. And it's about the inertial force that's out there in our bad behavior.
01:00I'm as guilty of this as anyone. Leaving excess capital, idling cash, hoarding cash,
01:06far beyond the threshold, seriously penalizes long-term growth, inflation. It silently erodes
01:13the purchasing power of uninvested capital. Why do we do this? Start with, I mean, you're expert at
01:20this. Why do, what's the why of why we sit with cash up to our eyeballs?
01:25First thing is we don't teach people to invest. So when you think of our education in the U.S.,
01:31yeah, you may be a business major and maybe you have some type of coursework in college,
01:35but many people grow. They could go to the best universities in the world and not actually
01:40understand financial planning, estate planning, and how to invest. So part of it is, like, we are not
01:45educated to do that. Loss aversion is also a very, very powerful heuristic bias where people tend to
01:51think that it's safe. Cash feels safe. And the last thing that I would say is people are busy.
01:58The inertia part is actually very real. So Mike talked about this, that you're kind of,
02:02you could have the inappropriate allocation because you don't understand the outsized kind
02:07of positions in your portfolio. You have to have a more proactive approach.
02:11So the chart we showed with Mike, which we could also show with Kristen, is there issue here,
02:15Scarlett, we're addicted to a bull market or we don't have to think?
02:18Right. To me, that's a lot of it.
02:20Right. I don't, there's the sweat. With a VIX of 14, the sweat's not out there.
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