312: [Justin Kuyper] Ai Review

Today, we're diving into a fascinating discussion about OpenVest, a fintech company that's making waves by claiming to bring high-level investment strategies to the everyday person. You know that pesky sandwich generation? Well, they're the ones feeling the squeeze trying to juggle raising kids and caring for aging parents, all while building wealth. OpenVest is stepping in, promising to democratize investing with low fees and impressive potential returns. We're talking about starting with as little as $300 and possibly seeing returns of 120% to 300% over three years! But hold on—any time you hear numbers like that, you’ve gotta wonder about the risks involved. So join us as we unpack their approach, challenge the traditional investment landscape, and ponder whether this could really be the game-changer for folks looking to build a financial legacy.

This episode is a real eye-opener for anyone feeling the crunch of the sandwich generation—those caught between raising kids and caring for aging parents. Justin Kuyper from OpenVest joins us to chat about how his fintech company is shaking things up in the investment world. We’re exploring how OpenVest is claiming to democratize investment strategies that were once just for the big dogs, like hedge funds and private equity. If you’ve ever felt like you were missing out on the financial good stuff because of high fees and confusing options, this conversation is for you!

Justin dives into OpenVest's proprietary algorithms that are designed to bring institutional-level investment performance to the everyday investor. He’s not mincing words when he criticizes traditional retirement plans, calling them “overly diversified bundles of garbage” leading to “flatline growth.” That’s a bold statement! We discuss the importance of understanding the risks of chasing high returns, especially when they come with the potential for volatility. After all, high reward often means high risk, right?

The conversation flows as we examine OpenVest’s fee structure, which is refreshingly simple and low-cost compared to the usual suspects in the investment world. Imagine investing without worrying about those pesky percentage fees gnawing away at your returns! Justin discusses scenarios where low fees can significantly impact long-term wealth building. It’s a wild ride through the complexities of finance, but with a refreshing twist that keeps things light and fun. If you're part of the sandwich generation or just curious about innovative investment solutions, this chat is packed with insights that could change how you think about your financial future!

Website: https://openvest.co/

Thank you for listening!

check out https://aboutthatwallet.com

312 Bonus

Episode Transcript

(00:00):
Welcome to the deep dive.
Today we're digging into justone source, but it's a really interesting
1.
Episode 312 of the about thatWallet podcast.
It features Justin Kuyper.
He's the CEO and founder of OpenVest.
Right.
And that original episode, itwas really focused on the financial
needs of what they call thesandwich generation.
You know, people trying toraise kids, maybe look after older

(00:22):
parents too, all at the same time.
Big financial pressure.
Yeah, exactly.
And they're looking for solid,you know, long term ways to build
wealth.
So.
So openbus claims they'vebuilt something using fintech to
help with exactly that.
It's a pretty bold claim, actually.
It is.
So our mission here is tounderstand their solution.
They're essentially sayingthey can bring institutional level

(00:43):
investment performance, thekind of usually just for millionaires
or hedge funds.
Right.
The really high end stuff, and bring.
That to the average person,the retail investor.
So how do they propose doing that?
It starts with their tech,according to Kuyper.
He talks about theseproprietary algorithms they use,
and apparently they're basedon the same kind of information,
the same data sources that thebig elite hedge funds and private

(01:07):
equity firms use.
Huh.
So the idea is to sort ofdistill all that complex exclusive
knowledge down for regular users.
That's the pitch.
Democratize the information,democratize the trading power.
And they're pretty critical ofthe, well, the current options most
people have.
Oh, yeah.
Quite harsh.
The source material it reallylays into.

(01:29):
Typical four 1Ks and IRAs,calls them, and this is a quote,
overly diversified bundles of garbage.
Wow, okay.
Yeah.
Leading to, quote, flatline growth.
Basically saying they don'treally perform.
Which definitely highlights agap, doesn't it?
If you believe their critique.
A gap between what the prosget and what most people are offered.
It really does.
And Kuyper positions openvestas the answer to that gap.

(01:53):
He argues that the traditionalhigh costs, especially those percentage
based fees, combined with poorperformance, well, that's what stops
the sandwich generation forbuilding a real legacy.
Right.
Those fees can eat away atreturns over time.
So what about performance?
They must be claimingsomething pretty good to back this
up.
They are.
And this is where it gets, youknow, pretty compelling, but maybe

(02:13):
also raises questions.
First off, you can start withjust 300 bucks.
So low entry point.
Okay.
That's accessible.
And then the returns.
Yeah, they cited platformnumbers showing long term options
returning anywhere from 120%up to 300% over the previous three
years.
Whoa, hold on.
120 to 300% over three years.

(02:35):
That's what was cited.
And they expect or hope tocontinue seeing 30% to 40% annualized
returns.
That's.
That's massive.
It is, but okay, we do need topump the brakes just a little here.
Anytime you see three yearreturns like that, especially tied
to these kinds ofinstitutional strategies.
Yeah.
You absolutely have to ask,what is the risk?
What kind of risk profile arewe to talk about?

(02:56):
Are these complex strategies?
Are they volatile?
Is this really the right thingfor someone's like retirement nest
egg?
That's a really crucial point.
High reward often means high risk.
Exactly.
So they claim the high yield,but you, the listener, always need
to weigh that againstpotential volatility and risk.
It's essential.
Absolutely essential.
Caveat.
But okay.
Even with that skepticism, ifthey could deliver even a fraction

(03:19):
of that performance to regularfolks, normally the fees would kill
you.
Right.
And that's the other big partof their model.
They pivot hard away frompercentage fees.
Okay, how does that work?
It seems very customercentric, focused entirely on flat
fees, simple amounts.
For regular retail investmentaccounts, they say it's capped.
Maximum $3 a month.

(03:40):
$3 a month?
Max.
That's the claim less thanyour coffee.
That's incredibly low comparedto typical management fees.
What about retirement accounts?
The IRAs, 401ks?
The sandwich generation needsstill flat fees.
Just a bit different.
The range cited was $5 up to$40 a month.
But Kuyper mentioned the mostcommon rate is around $10 a month.

(04:00):
Ten bucks a month?
Yeah.
Even 40 bucks, that's stillpotentially way cheaper than many
mutual funds or ETFs charginga percentage.
Exactly.
It's explicitly stop that, youknow, constant drain on your returns
from percentage fees.
Compounding works much betterwithout that drag.
And that lower cost feedsdirectly into the whole legacy building
idea they push.

(04:20):
Yeah, he gave an example, Ithink about compounding.
He did said something like ifyou have $100,000 and it compounds
at 20% a year for 20 years.
Right.
Turns into something huge.
Like $3.8 million.
Exactly.
But his point was if half yourpotential return gets eaten by fees
along the way, you just, younever get there.

(04:40):
You don't see thattransformative growth makes sense.
The lower the fee friction,the better the compounding effect.
Now, people might hear allthis, especially from a newer company,
and worry about trust.
Right?
Stability.
Sure, that's always a concernwith fintech disruptors making big
promises.
But Openves apparently didn'tjust like spring up from nowhere.
Kuyper mentioned it's built ontop of.

(05:01):
Existing infrastructure yeah,specifically Interactive Brokers,
which is know a hugeestablished public company, SEC registered.
No, that provides a layer ofstability infrastructure, presumably.
Yes, it lends credibility andsuggest the plumbing the back end
is solid supports their biggoal, helping people build wealth
for the next generation.

(05:22):
So openvest is essentiallyarguing that the future of investing
for regular people should looklike this.
Access to sophisticatedstrategies minus the crippling.
Fees, pretty much makingserious wealth creation, especially
for that squeezed sandwichgeneration, feel attainable again.
Okay, so wrapping this up,what's the big picture here?

(05:43):
Openvest looks like it'strying a real disruption.
Merging those high end hedgefund type strategies with a simple,
flat, very low fee structure.
Yeah, fundamentallychallenging the old way of doing
things, especially for longterm investing for ordinary people.
Which leaves us with aprovocative thought for you, the
listener.
If this platform, OpenVest cangenuinely offer access to institutional

(06:03):
level tools for just $3 a month.
Right?
And it makes you wonder,doesn't it?
What other percentage fees,maybe hidden, maybe obvious, are
currently holding you backfrom really multiplying your wealth?
Something to think about.
Definitely something to think about.
Now that you've listened tothis deep dive, we really recommend
you go listen to the fulloriginal episode about that wallet.
And hey, while you're at it,please leave us a five star review

(06:24):
on Apple Podcasts and Spotify.
It really helps.