October 7, 2025 • 15 mins
Scott Brown with Edgewater Family Wealth first tackles a listener's question about 401(k) before discussing why underspending is as much a disconnect as overspending. Scott wraps it up a with a 'future you' discussion with Rauce.
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Speaker 1 (00:02):
You can still watch Jim Get angry did Jim Colbert
Show on YouTube, Real Radio dot Fm slash watch so
cover crew bdm red here.
Speaker 2 (00:12):
Hey at the next time Ross does to your Thursday
and he does not make Jack play a character as
Captain Munch, I will be so disappointed.
Speaker 3 (00:25):
All right, welcome back to the Jim Colbert Show.
Speaker 2 (00:27):
Real Radio one oh four point one bills is your
six o'clock keyword?
Speaker 3 (00:31):
That's b I l ls.
Speaker 2 (00:33):
Just mosey over to Real Radio dot FM and send
that off for your chance at one thousand dollars bills. Guys,
that'll do it. That is your six block keyword. Good luck, Jim,
there's dead. Hello, Jack is here, Ross is as well.
Speaker 3 (00:45):
Let's talk money. Let's do its only money, Oh perd.
Speaker 1 (00:48):
People passionate about.
Speaker 3 (00:50):
Planning for their future, rise above investments, miss to build real.
Speaker 1 (00:57):
Isn't that really just common sense financial advice?
Speaker 3 (01:00):
So oh okay, dude's.
Speaker 1 (01:04):
All with your money.
Speaker 3 (01:05):
Wiscott thrown from Edgewater Family will good love everybody. Scott
crownafamilywealth dot Com.
Speaker 2 (01:14):
Thirty eight plus years as a fiduciary here in Central
Florida making sure that people will do the right thing
with their money long term, so they can enjoy.
Speaker 3 (01:21):
Their lives as long as they are alives. Goot, how
you doing, buddy?
Speaker 1 (01:27):
Doing well? It was good to hear that Rush cut
My first concert ever, nineteen seventy nine or nineteen eighty,
I can't remember which Lakeland Civic Center. Rush.
Speaker 3 (01:37):
Yeah, man, oh so cool.
Speaker 2 (01:38):
Yeah, incredible and back then they were in. You know,
that's as progressive as progressive rock got back in those days.
You know, I went from like Kansas and bands like
Yes and to bands like Rush and nobody really knew
how to because Geddy Lee's voice was so unique, but
the music was so incredible and just three people were
making it.
Speaker 3 (01:56):
It was just like one of those Yeah.
Speaker 2 (01:58):
The first time you heard Rush, you never forgot it
because you couldn't believe three people.
Speaker 1 (02:01):
Could do that. Yeah, those Damp Canadians.
Speaker 2 (02:06):
Yeah, just of course announcing their new tour Alex Lifson
and Getty Lee.
Speaker 3 (02:11):
Of course, no Neil Pert. But I just found out today.
Speaker 2 (02:14):
I did not know that the percussionist, the drummer they're
bringing along to replace almost the irreplaceable Neil Peart, is
a young lady I've never heard of.
Speaker 1 (02:23):
Yeah, No, I read that this morning too, and I
had no idea who she was. Obviously a Neil Pert
was a really I mean, obviously he was an icon
in terms of drummer. But he was also, you know,
a big cross country motorcycle guy, which is near and
dear to my heart. So he had spent a good
portion of the latter part of his life riding motorcycles
across the United States, in fact mostly, so he was
(02:45):
a big He was a big motorcycle guy.
Speaker 3 (02:46):
That's cool.
Speaker 1 (02:47):
I did not know that.
Speaker 3 (02:47):
I mean, yeah, you've done that.
Speaker 1 (02:50):
Oh yeah, yeah, I've done I've written all the way
across Cuba.
Speaker 3 (02:53):
Have you really I have?
Speaker 1 (02:55):
I did that two years ago, got on a motorcycle
with seven buddies and across Cuba we went.
Speaker 3 (03:00):
Now out of curiosity, did you ship your own bike
down there? Did you just rent one?
Speaker 1 (03:05):
No? So when you get down there, they have you know,
they do business with the Europeans, so they are German.
In fact, my bike was a BMW, so they had
German BMW's down there that they supplied just and we
were guided all the way across Cuba from one end
to the other by a local who was a huge
motorcycle guy. And it was one of the coolest trips
I've ever done in my life.
Speaker 3 (03:24):
Not I imagine, Man, that's cool. That food, the cigars
and the great rum, all the.
Speaker 1 (03:28):
Entire cigars have bound.
Speaker 2 (03:30):
My friend, They're everywhere, got wild out and I'm guessing
they're not seventy five dollars a piece down there while
you're buying them from the local.
Speaker 4 (03:37):
They are not.
Speaker 1 (03:38):
Although they see that you're American, the price does go
up considerably. Yeah, for sure.
Speaker 3 (03:42):
What do you ride right now?
Speaker 1 (03:43):
Do you still have a bike? I sold my last bike.
I had a Husky nine oh one, which was an
adventure bike, which is all the rage these days. But
after my trip through Cube and one other ride I had,
after nine broken ribs, I decided it was time to
end the fifty five year experiment with motorcycle.
Speaker 2 (04:02):
Well, you know, I love riding as well, Scott and
uh we had a close call. My wife just like
to ride with me. We had a close call a
couple of times, and that last time my wife said,
I'm good, I've had all of the riding I want.
And uh, then you know again, traffic became so crazy.
I just sold mine as well. I just didn't want
to roll the dice anymore in Florida.
Speaker 1 (04:21):
It's it's you know, I'm an old dirt bike guy,
so riding in the street has not ever really been
my favorite. After trees don't jump out at your cars,
do exactly, although my wife would argue two or three
times at the hospital the tree did jump out in
front of me. But on Appe Street. Oh, very cool.
Speaker 2 (04:42):
I think the tree just fell on your internet. You
just cut out there for a quick executly, that's cool.
Scott joins us every single story. That's all right, don't worries.
Scott joins us every single Tuesday, around six twenty years
so to discuss some things happening over at the firm.
Also some answer some questions from listeners, and if you
have one while we're doing the segment, you can easily
text to it. Text to jes Louise, text it to
(05:04):
us at seven seven zero three one.
Speaker 3 (05:07):
Scott, what you got versus week buddy, Well, we had.
Speaker 1 (05:10):
We had a question last week we didn't have a
chance to get to and this person said, I have
a Vanguard four oh one A, which is basically a
four oh one K for government employees in a job
that matches my contributions. I also have an Acorns account,
which I think is kind of cool that's up sixteen percent.
One of the things that I hear from people a
lot is before I answer the full question, is you
(05:33):
know i've got this hey, and I've got this account
at X y Z firm. The four oh one K
is only up about ten percent. The other counts up
sixteen percent, and they can get confused.
Speaker 3 (05:49):
Yeah, we're there, we're back.
Speaker 1 (05:51):
Sorry my sounds coming and going. I apologize. But people
get confused by by the they think the four to
one K has a return in the brokerage account has
a return. Really, the return is a byproduct of the
investments you have inside of each So some people will say, well,
I don't like my four oh one K because the
return sucks. And then they'll say, but I do like my,
(06:12):
in this case Acorn account because the return is good.
But really what they're talking about is the investments inside
of each of them. So I think sometimes people get
confused and think that a four to one K is
good in an Acorn account or a Robinood account or
a Schwab account, that's bad. It's really simply a product
of a byproduct of what you have in there?
Speaker 4 (06:31):
Where who determines what stock to buy on a government
four A one K, Well, it's no.
Speaker 1 (06:38):
Different than any other version. Right, They're gonna have funds inside.
They're gonna have a bond fund, to stock fund, a
small cap, large cap, growth value index products. They're going
to have all kinds of things in there. And again
when people say that to me, I often ask, okay,
but what's in those things? Right? Because you may have
put a bond fund that earned six percent in your
four oh one K and picked a stock fund that
(07:00):
did fifteen percent, that doesn't by definition, that doesn't make
either plan better than the other. It just means you
bought different things. But this person asked, should I combine
the accounts? Should I? Well, my first question is are
you maxing out the part of your four oh one
K slash four h one a that are you getting
the most of your employer's match. Once you've reached that level,
(07:22):
you can probably have other conversations, but I would say
until you're getting every dollar from your employer, in this case,
the government, I would say you go that route when
that's maxed out. That's assuming you have enough reserve saving
one hand to provide for an emergency, so combining And
the last point I'll make is that combining the two
doesn't make sense because the only way you can add
(07:44):
to a four oh one A or a four oh
one K or a four h three B is through
payroll deduction. You can't just jam outside money into a
four to oh one K. So the answer to the question,
I think essentially is get to you. It appears to
me you have savings because you have this Acorns account.
I would look to the four oh one A to
get the maximum match I.
Speaker 3 (08:03):
Could, Yeah, Scott.
Speaker 2 (08:04):
I also wanted to ask one other thing about when
it comes to your four oh and K, whether it
be a Fidelity account, Banguard account, whatever the case may be,
do you trust those companies to choose on your behalf
or do you always say that there should be someone
like you making those choices and allocating that money where
it should be.
Speaker 3 (08:20):
What do you prefer?
Speaker 1 (08:22):
Well, there's probably three choices there. It didn't used to
be this way, but there's probably three choices now. When
you can go to a professional, most plans, if you
have an employer based plan, whether that's the government or
local company, have a representative like myself attached to it. Now.
I will tell you, on average, those people are not
seen very often unless they're a good one, and there
(08:42):
are some good ones around town. But I would seek
out that person and ask their advice. If you would
prefer not to do that, the next option would be
to do it yourself. If you say, well, look, I
just want to cheap index fun I know the stock
market does xyz over the last thirty years, and if
I leave it alone, it'll be fine, which is also
probably true. And the third option you is is these
(09:02):
companies Vanguard or Fidelity, or whoever it is, to row price,
they will, for a little extra fee twenty basis points
fifteen basis points one fifth of one percent will pick
the investments for you. I will tell you, on average,
I would either get with the advisor or just pick
an index fund, especially if you're in it for the long. Yeah,
(09:23):
very good.
Speaker 2 (09:23):
Talking to Scott brown Edgewaterfamilywealth dot Com. We're doing its
only money. We talk to him about a number of
things when he calls in on Tuesdays. One of the
things you have here is Ross and I have a
future you discussion. I don't know what that means.
Speaker 1 (09:37):
So Ross and I and our many conversations. Had a
recent conversation about future you encourage you, and one of
the problems people have is they're not paying a whole
lot of attention to future you. Is that correct?
Speaker 4 (09:51):
Ross, Is that what we talked about that is one
hundred percent and that it's you got to be proactive
on loving future you.
Speaker 1 (09:59):
Yeah, I mean a lot of people are struggle with
all kinds. I just read that there were thirty thousand
books published in the last ten years on personal health.
Yet as a country we have an ongoing health crisis
for of our diabetes, obesity, whatever it is. So it
tells you that it's not a lack of information, it's
the problem. Is that current you wants to have oreos
(10:22):
for dinner because you don't care that much about future you.
So I think the same thing is true of money.
You know, when you save, you're basically investing in future you.
You're investing in future U's independence, right, because if you
don't invest today, or you don't even have to invest,
if you don't save, you're not looking out for future you.
(10:44):
You're more concerned with current you. Who says, you know what,
I'd rather go to the club tonight and spend two
hundred dollars acting silly, drinking too much and carrying on
because currently really wants to do that. But future you,
that's way down the road. We're not concerned all that
much about future us. Future us as somebody we don't
(11:06):
know that well and don't care that much about. In
the conversation and I that Ross and I have had
over the last little bit is how do we convince
current us to pay a little bit more attention to
future us? And that's a big problem for a lot
of people when it comes to wealth accumulation.
Speaker 3 (11:22):
And and what's the answer there?
Speaker 2 (11:24):
I mean, is there a set answer for that or
is that just a that that's a subjective, subjective issue.
Speaker 1 (11:30):
Well, I mean I don't The answer is the obvious one,
which is more disciplined and concern for future you. Right
if if you know, if you're eating oreos for dinner
and uh and whatever the cereals you were just mentioning
for breakfast the series, you know, the lucky charms and
the things of that nature, and you're not paying in
current you likes those things. I get it, But future
(11:52):
you is gonna have diabetes. Right, So it's the same thing,
is true of money. If you if you take a
second to say, you know what current me. I want
you to sit on on the couch and watch TV tonight,
and we're gonna take that fifty extra dollars and put
it in our four oh one k or put it
put it in a savings account. What I get? Morgan
Hausel said this. Morgan Housel, you may or may not remember,
(12:13):
wrote the book The Psychology of Money, which is the
best selling money book of all time. And I recently
heard him say that, really, when you're when you invest,
when you save, you are investing in your future independence,
because you will never be independent from an employer, from
a parent, from a relative that you have to borrow
money from. You will never have that independence if you
(12:36):
don't invest in future use independence. And if I think
if people thought of it that way, if they thought
this fifty dollars that I'm not gonna spend and I'm
gonna save is for my future ability to be free
to make the decisions I want to make because I
want to make them. Because if let's face it, if
you're in a job you don't like and you have
(12:56):
no savings and you don't put any effort into having
any say, savings every day that you go to work
that you don't like, that job you were dependent on
that employer that you do not like. So when you're saving,
maybe you're saving. Let's say, look in a year, I
got to get a different job, I'm going to need
five grand in savings to take that month to find
that job. You're you're investing in your future independence. And
(13:19):
I think, again, the problem is we're all a little
too caught up in current us not to say you
shouldn't enjoy life. I'm not saying you shouldn't enjoy life.
What I am saying is give future you a little
bit of time each and every day. Yeah, future you
is going to think the lambo is a stupid idea.
Speaker 3 (13:33):
Yeah yeah, yeah, future you.
Speaker 2 (13:35):
Doesn't like you investing in the things that depreciate at
an exponential rate, like immediately.
Speaker 3 (13:41):
That's what future you does not like.
Speaker 1 (13:43):
And I'll just think, yeah, and well, think about think
about how you feel after you do something like that.
I know, as a young man, I always wanted the
cool car, and I wanted people to think I was cool.
A little good that did me. But so you know,
if you bought the cool car and I did it
once I bought that I Mustang five point zero I
couldn't afford. You know, a week later, I didn't care.
(14:05):
I didn't mean anything to me. I had the French
fry wrapper in the back. Nobody you know. It just
I wasn't watching it every other day like I was
when I first got it. I mean again, that stuff dissipates,
and current you is probably making a little bit of mess.
Speaker 4 (14:19):
For future Yeah, it's just it's so hard to talk
about self love in twenty twenty five. Watch the Segway
self love in twenty twenty five, because it's not the
most celebrated thing, right, and a lot of people look
at it.
Speaker 1 (14:34):
Well.
Speaker 4 (14:35):
Discipline is also, if you squint in a different light,
that is self love for future you. Discipline now is
self love in the future. Yeah, one hundred percent, that's
what you am.
Speaker 1 (14:45):
Yeah. Yeah, I couldn't agree more. And we've talked about this.
I mean, delaying gratification is hard. But Jack's favorite thing
I think that I've ever said is when you begin
to be gratified by the delay is when it'll make
a difference. Because at some point people cross the thresholds
where they're like, oh, this is kind of cool. I
saved up fifty grand. The fifty grand made five grand.
(15:07):
I saved up one hundred grand, one hundred grand, maybe
ten grand. It again, Once the gratification comes from the delay,
then that's when you start to make progress for future you.
Speaker 3 (15:19):
All right, let's move on to the last one here.
Speaker 2 (15:21):
Underspending is as much a disconnect as overspending.
Speaker 3 (15:24):
That one does not make sense. Yeah, so.
Speaker 1 (15:29):
I'm gonna go and this is gonna fly in the
face of what we just talked about it. But I'm
talking about retirees who have been paranoid their whole lives,
and because of their paranoia, have saved And it's a
good paranoia. They put away a lot of Maybe they
have five hundred grand, they have a million dollars, and
they're sixty nine years old and the wife is begging
them to go on a
You can still watch Jim Get angry did Jim Colbert
Show on YouTube, Real Radio dot Fm slash watch so
cover crew bdm red here.
Speaker 2 (00:12):
Hey at the next time Ross does to your Thursday
and he does not make Jack play a character as
Captain Munch, I will be so disappointed.
Speaker 3 (00:25):
All right, welcome back to the Jim Colbert Show.
Speaker 2 (00:27):
Real Radio one oh four point one bills is your
six o'clock keyword?
Speaker 3 (00:31):
That's b I l ls.
Speaker 2 (00:33):
Just mosey over to Real Radio dot FM and send
that off for your chance at one thousand dollars bills. Guys,
that'll do it. That is your six block keyword. Good luck, Jim,
there's dead. Hello, Jack is here, Ross is as well.
Speaker 3 (00:45):
Let's talk money. Let's do its only money, Oh perd.
Speaker 1 (00:48):
People passionate about.
Speaker 3 (00:50):
Planning for their future, rise above investments, miss to build real.
Speaker 1 (00:57):
Isn't that really just common sense financial advice?
Speaker 3 (01:00):
So oh okay, dude's.
Speaker 1 (01:04):
All with your money.
Speaker 3 (01:05):
Wiscott thrown from Edgewater Family will good love everybody. Scott
crownafamilywealth dot Com.
Speaker 2 (01:14):
Thirty eight plus years as a fiduciary here in Central
Florida making sure that people will do the right thing
with their money long term, so they can enjoy.
Speaker 3 (01:21):
Their lives as long as they are alives. Goot, how
you doing, buddy?
Speaker 1 (01:27):
Doing well? It was good to hear that Rush cut
My first concert ever, nineteen seventy nine or nineteen eighty,
I can't remember which Lakeland Civic Center. Rush.
Speaker 3 (01:37):
Yeah, man, oh so cool.
Speaker 2 (01:38):
Yeah, incredible and back then they were in. You know,
that's as progressive as progressive rock got back in those days.
You know, I went from like Kansas and bands like
Yes and to bands like Rush and nobody really knew
how to because Geddy Lee's voice was so unique, but
the music was so incredible and just three people were
making it.
Speaker 3 (01:56):
It was just like one of those Yeah.
Speaker 2 (01:58):
The first time you heard Rush, you never forgot it
because you couldn't believe three people.
Speaker 1 (02:01):
Could do that. Yeah, those Damp Canadians.
Speaker 2 (02:06):
Yeah, just of course announcing their new tour Alex Lifson
and Getty Lee.
Speaker 3 (02:11):
Of course, no Neil Pert. But I just found out today.
Speaker 2 (02:14):
I did not know that the percussionist, the drummer they're
bringing along to replace almost the irreplaceable Neil Peart, is
a young lady I've never heard of.
Speaker 1 (02:23):
Yeah, No, I read that this morning too, and I
had no idea who she was. Obviously a Neil Pert
was a really I mean, obviously he was an icon
in terms of drummer. But he was also, you know,
a big cross country motorcycle guy, which is near and
dear to my heart. So he had spent a good
portion of the latter part of his life riding motorcycles
across the United States, in fact mostly, so he was
(02:45):
a big He was a big motorcycle guy.
Speaker 3 (02:46):
That's cool.
Speaker 1 (02:47):
I did not know that.
Speaker 3 (02:47):
I mean, yeah, you've done that.
Speaker 1 (02:50):
Oh yeah, yeah, I've done I've written all the way
across Cuba.
Speaker 3 (02:53):
Have you really I have?
Speaker 1 (02:55):
I did that two years ago, got on a motorcycle
with seven buddies and across Cuba we went.
Speaker 3 (03:00):
Now out of curiosity, did you ship your own bike
down there? Did you just rent one?
Speaker 1 (03:05):
No? So when you get down there, they have you know,
they do business with the Europeans, so they are German.
In fact, my bike was a BMW, so they had
German BMW's down there that they supplied just and we
were guided all the way across Cuba from one end
to the other by a local who was a huge
motorcycle guy. And it was one of the coolest trips
I've ever done in my life.
Speaker 3 (03:24):
Not I imagine, Man, that's cool. That food, the cigars
and the great rum, all the.
Speaker 1 (03:28):
Entire cigars have bound.
Speaker 2 (03:30):
My friend, They're everywhere, got wild out and I'm guessing
they're not seventy five dollars a piece down there while
you're buying them from the local.
Speaker 4 (03:37):
They are not.
Speaker 1 (03:38):
Although they see that you're American, the price does go
up considerably. Yeah, for sure.
Speaker 3 (03:42):
What do you ride right now?
Speaker 1 (03:43):
Do you still have a bike? I sold my last bike.
I had a Husky nine oh one, which was an
adventure bike, which is all the rage these days. But
after my trip through Cube and one other ride I had,
after nine broken ribs, I decided it was time to
end the fifty five year experiment with motorcycle.
Speaker 2 (04:02):
Well, you know, I love riding as well, Scott and
uh we had a close call. My wife just like
to ride with me. We had a close call a
couple of times, and that last time my wife said,
I'm good, I've had all of the riding I want.
And uh, then you know again, traffic became so crazy.
I just sold mine as well. I just didn't want
to roll the dice anymore in Florida.
Speaker 1 (04:21):
It's it's you know, I'm an old dirt bike guy,
so riding in the street has not ever really been
my favorite. After trees don't jump out at your cars,
do exactly, although my wife would argue two or three
times at the hospital the tree did jump out in
front of me. But on Appe Street. Oh, very cool.
Speaker 2 (04:42):
I think the tree just fell on your internet. You
just cut out there for a quick executly, that's cool.
Scott joins us every single story. That's all right, don't worries.
Scott joins us every single Tuesday, around six twenty years
so to discuss some things happening over at the firm.
Also some answer some questions from listeners, and if you
have one while we're doing the segment, you can easily
text to it. Text to jes Louise, text it to
(05:04):
us at seven seven zero three one.
Speaker 3 (05:07):
Scott, what you got versus week buddy, Well, we had.
Speaker 1 (05:10):
We had a question last week we didn't have a
chance to get to and this person said, I have
a Vanguard four oh one A, which is basically a
four oh one K for government employees in a job
that matches my contributions. I also have an Acorns account,
which I think is kind of cool that's up sixteen percent.
One of the things that I hear from people a
lot is before I answer the full question, is you
(05:33):
know i've got this hey, and I've got this account
at X y Z firm. The four oh one K
is only up about ten percent. The other counts up
sixteen percent, and they can get confused.
Speaker 3 (05:49):
Yeah, we're there, we're back.
Speaker 1 (05:51):
Sorry my sounds coming and going. I apologize. But people
get confused by by the they think the four to
one K has a return in the brokerage account has
a return. Really, the return is a byproduct of the
investments you have inside of each So some people will say, well,
I don't like my four oh one K because the
return sucks. And then they'll say, but I do like my,
(06:12):
in this case Acorn account because the return is good.
But really what they're talking about is the investments inside
of each of them. So I think sometimes people get
confused and think that a four to one K is
good in an Acorn account or a Robinood account or
a Schwab account, that's bad. It's really simply a product
of a byproduct of what you have in there?
Speaker 4 (06:31):
Where who determines what stock to buy on a government
four A one K, Well, it's no.
Speaker 1 (06:38):
Different than any other version. Right, They're gonna have funds inside.
They're gonna have a bond fund, to stock fund, a
small cap, large cap, growth value index products. They're going
to have all kinds of things in there. And again
when people say that to me, I often ask, okay,
but what's in those things? Right? Because you may have
put a bond fund that earned six percent in your
four oh one K and picked a stock fund that
(07:00):
did fifteen percent, that doesn't by definition, that doesn't make
either plan better than the other. It just means you
bought different things. But this person asked, should I combine
the accounts? Should I? Well, my first question is are
you maxing out the part of your four oh one
K slash four h one a that are you getting
the most of your employer's match. Once you've reached that level,
(07:22):
you can probably have other conversations, but I would say
until you're getting every dollar from your employer, in this case,
the government, I would say you go that route when
that's maxed out. That's assuming you have enough reserve saving
one hand to provide for an emergency, so combining And
the last point I'll make is that combining the two
doesn't make sense because the only way you can add
(07:44):
to a four oh one A or a four oh
one K or a four h three B is through
payroll deduction. You can't just jam outside money into a
four to oh one K. So the answer to the question,
I think essentially is get to you. It appears to
me you have savings because you have this Acorns account.
I would look to the four oh one A to
get the maximum match I.
Speaker 3 (08:03):
Could, Yeah, Scott.
Speaker 2 (08:04):
I also wanted to ask one other thing about when
it comes to your four oh and K, whether it
be a Fidelity account, Banguard account, whatever the case may be,
do you trust those companies to choose on your behalf
or do you always say that there should be someone
like you making those choices and allocating that money where
it should be.
Speaker 3 (08:20):
What do you prefer?
Speaker 1 (08:22):
Well, there's probably three choices there. It didn't used to
be this way, but there's probably three choices now. When
you can go to a professional, most plans, if you
have an employer based plan, whether that's the government or
local company, have a representative like myself attached to it. Now.
I will tell you, on average, those people are not
seen very often unless they're a good one, and there
(08:42):
are some good ones around town. But I would seek
out that person and ask their advice. If you would
prefer not to do that, the next option would be
to do it yourself. If you say, well, look, I
just want to cheap index fun I know the stock
market does xyz over the last thirty years, and if
I leave it alone, it'll be fine, which is also
probably true. And the third option you is is these
(09:02):
companies Vanguard or Fidelity, or whoever it is, to row price,
they will, for a little extra fee twenty basis points
fifteen basis points one fifth of one percent will pick
the investments for you. I will tell you, on average,
I would either get with the advisor or just pick
an index fund, especially if you're in it for the long. Yeah,
(09:23):
very good.
Speaker 2 (09:23):
Talking to Scott brown Edgewaterfamilywealth dot Com. We're doing its
only money. We talk to him about a number of
things when he calls in on Tuesdays. One of the
things you have here is Ross and I have a
future you discussion. I don't know what that means.
Speaker 1 (09:37):
So Ross and I and our many conversations. Had a
recent conversation about future you encourage you, and one of
the problems people have is they're not paying a whole
lot of attention to future you. Is that correct?
Speaker 4 (09:51):
Ross, Is that what we talked about that is one
hundred percent and that it's you got to be proactive
on loving future you.
Speaker 1 (09:59):
Yeah, I mean a lot of people are struggle with
all kinds. I just read that there were thirty thousand
books published in the last ten years on personal health.
Yet as a country we have an ongoing health crisis
for of our diabetes, obesity, whatever it is. So it
tells you that it's not a lack of information, it's
the problem. Is that current you wants to have oreos
(10:22):
for dinner because you don't care that much about future you.
So I think the same thing is true of money.
You know, when you save, you're basically investing in future you.
You're investing in future U's independence, right, because if you
don't invest today, or you don't even have to invest,
if you don't save, you're not looking out for future you.
(10:44):
You're more concerned with current you. Who says, you know what,
I'd rather go to the club tonight and spend two
hundred dollars acting silly, drinking too much and carrying on
because currently really wants to do that. But future you,
that's way down the road. We're not concerned all that
much about future us. Future us as somebody we don't
(11:06):
know that well and don't care that much about. In
the conversation and I that Ross and I have had
over the last little bit is how do we convince
current us to pay a little bit more attention to
future us? And that's a big problem for a lot
of people when it comes to wealth accumulation.
Speaker 3 (11:22):
And and what's the answer there?
Speaker 2 (11:24):
I mean, is there a set answer for that or
is that just a that that's a subjective, subjective issue.
Speaker 1 (11:30):
Well, I mean I don't The answer is the obvious one,
which is more disciplined and concern for future you. Right
if if you know, if you're eating oreos for dinner
and uh and whatever the cereals you were just mentioning
for breakfast the series, you know, the lucky charms and
the things of that nature, and you're not paying in
current you likes those things. I get it, But future
(11:52):
you is gonna have diabetes. Right, So it's the same thing,
is true of money. If you if you take a
second to say, you know what current me. I want
you to sit on on the couch and watch TV tonight,
and we're gonna take that fifty extra dollars and put
it in our four oh one k or put it
put it in a savings account. What I get? Morgan
Hausel said this. Morgan Housel, you may or may not remember,
(12:13):
wrote the book The Psychology of Money, which is the
best selling money book of all time. And I recently
heard him say that, really, when you're when you invest,
when you save, you are investing in your future independence,
because you will never be independent from an employer, from
a parent, from a relative that you have to borrow
money from. You will never have that independence if you
(12:36):
don't invest in future use independence. And if I think
if people thought of it that way, if they thought
this fifty dollars that I'm not gonna spend and I'm
gonna save is for my future ability to be free
to make the decisions I want to make because I
want to make them. Because if let's face it, if
you're in a job you don't like and you have
(12:56):
no savings and you don't put any effort into having
any say, savings every day that you go to work
that you don't like, that job you were dependent on
that employer that you do not like. So when you're saving,
maybe you're saving. Let's say, look in a year, I
got to get a different job, I'm going to need
five grand in savings to take that month to find
that job. You're you're investing in your future independence. And
(13:19):
I think, again, the problem is we're all a little
too caught up in current us not to say you
shouldn't enjoy life. I'm not saying you shouldn't enjoy life.
What I am saying is give future you a little
bit of time each and every day. Yeah, future you
is going to think the lambo is a stupid idea.
Speaker 3 (13:33):
Yeah yeah, yeah, future you.
Speaker 2 (13:35):
Doesn't like you investing in the things that depreciate at
an exponential rate, like immediately.
Speaker 3 (13:41):
That's what future you does not like.
Speaker 1 (13:43):
And I'll just think, yeah, and well, think about think
about how you feel after you do something like that.
I know, as a young man, I always wanted the
cool car, and I wanted people to think I was cool.
A little good that did me. But so you know,
if you bought the cool car and I did it
once I bought that I Mustang five point zero I
couldn't afford. You know, a week later, I didn't care.
(14:05):
I didn't mean anything to me. I had the French
fry wrapper in the back. Nobody you know. It just
I wasn't watching it every other day like I was
when I first got it. I mean again, that stuff dissipates,
and current you is probably making a little bit of mess.
Speaker 4 (14:19):
For future Yeah, it's just it's so hard to talk
about self love in twenty twenty five. Watch the Segway
self love in twenty twenty five, because it's not the
most celebrated thing, right, and a lot of people look
at it.
Speaker 1 (14:34):
Well.
Speaker 4 (14:35):
Discipline is also, if you squint in a different light,
that is self love for future you. Discipline now is
self love in the future. Yeah, one hundred percent, that's
what you am.
Speaker 1 (14:45):
Yeah. Yeah, I couldn't agree more. And we've talked about this.
I mean, delaying gratification is hard. But Jack's favorite thing
I think that I've ever said is when you begin
to be gratified by the delay is when it'll make
a difference. Because at some point people cross the thresholds
where they're like, oh, this is kind of cool. I
saved up fifty grand. The fifty grand made five grand.
(15:07):
I saved up one hundred grand, one hundred grand, maybe
ten grand. It again, Once the gratification comes from the delay,
then that's when you start to make progress for future you.
Speaker 3 (15:19):
All right, let's move on to the last one here.
Speaker 2 (15:21):
Underspending is as much a disconnect as overspending.
Speaker 3 (15:24):
That one does not make sense. Yeah, so.
Speaker 1 (15:29):
I'm gonna go and this is gonna fly in the
face of what we just talked about it. But I'm
talking about retirees who have been paranoid their whole lives,
and because of their paranoia, have saved And it's a
good paranoia. They put away a lot of Maybe they
have five hundred grand, they have a million dollars, and
they're sixty nine years old and the wife is begging
them to go on a
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