315: [Andrew Gold] Ai Review

We're diving into some seriously eye-opening insights from wealth strategist Andrew Gold, who shares his wisdom on generational wealth and the wild world of financial habits. One of the standout points is the massive wealth transfer that's about to happen—think 60 to 80 trillion dollars over the next couple of decades! It's crucial stuff, especially if you're part of that sandwich generation balancing the needs of both kids and parents. We’ll also chat about "financial genetics," which basically means our money habits often mirror what we learned from our parents. Plus, we'll touch on actionable tips like teaching kids the real cost of things and the importance of investing early. So, grab your headphones and get ready for a fun ride through the world of finance!

Takeaways:

• Wealth strategist Andrew Gold highlights a massive wealth transfer of 60 to 80 trillion dollars happening in upcoming decades.
• Understanding 'financial genetics' can help us break emotional patterns tied to how our parents managed money.
• Teaching kids about the real cost of things is crucial for their financial literacy and future success.
• Recognizing that saving too much can lead to negligent gratification is vital for maintaining life balance.
• Andrew Gold provides actionable tips on 529 plans, UTMA accounts, and Roth IRAs for financial planning.
• His mantra of thinking in decades, not days, encourages patience and resilience in investing.

More about Andrew Gold:

https://pwealthmgmt.com

Check out more episodes: https://aboutthatwallet.com

Episode 315 bonus

Episode Transcript

(00:00):
Welcome to the Deep Dive.
Today we're digging into somereally interesting stuff from wealth
strategist Andrew Gold.
Yeah.
Specifically from hisappearance on about that wallet,
episode 315.
Exactly.
And our goal here is to pullout the practical bits, the actionable
knowledge about generationalwealth and, you know, financial habits.
Especially important, I think,if you find yourself in that sandwich

(00:23):
generation caring for kids andparents, financially speaking.
Right.
And the context Gold lays outis just massive.
He talks about this hugewealth transfer coming up.
Yeah, the numbers are staggering.
Like 60 to 80 trillion dollarsover the next, what, 20 or 30 years?
It's incredible.
And he mentioned somethingfascinating, how younger generations
inheriting now maybe in their 30s.
You'Re doing thingsdifferently, taking big chunks of

(00:45):
time off right away, kind of.
Like an early retirement,decades before their parents might
have.
Yeah.
So let's get into his ideas.
He mentioned something calledfinancial genetics.
What's that about?
Well, it's this idea that howwe manage money isn't purely logical.
It's often tied to how we sawour parents manage money.
So, like, if they were always worried.

(01:05):
About scarcity, you probablyabsorb that worry, too.
Even if your situation isdifferent now.
It's an emotional pattern.
Hard to just think your wayout of it.
Okay, that makes sense.
So how do you break that?
He talked about his own kids, right?
Ages 2 and 9.
Yeah.
His strategy is about teachingthem the real cost of things.
Bridging that gap, you know,between wanting something instantly
and understanding the work it represents.

(01:26):
Like his example of a $60video game.
Right.
That could be a whole day'spay for someone working as a server.
Yeah.
Making that connection concrete.
That's powerful.
And it ties into this idea.
He mentioned a kind ofproactive shift.
Happening that's parentsrealizing that the old way, you know,
money is dull.
Business just doesn't cut itanymore because.

(01:46):
The costs kids face today,like college, are just so much higher.
They need that early expos.
Exactly.
Prepare them for what'scoming, including potentially managing
that inherited wealth wetalked about.
He also mentioned showing kidstheir accounts grow.
Ah.
Compounding made visual.
Yeah, Physically seeing thebalance go up over time, especially

(02:07):
when the market's doing well,it makes compounding, which can be
abstract, feel real, makespatience pay off visually.
Okay, so this all feeds intohis bigger philosophy, Planning with
purpose, not just ticking boxes.
Right.
It's about finding balance.
And he defines that usingthose five.
Pillars of wealth management,financial planning, investments,

(02:30):
taxes, estate planning, and risk.
And the key thing is how theyall connect.
Right.
Your investment choices affectyour taxes down the line which impacts
your estate plan, it's all linked.
Which brings us to a reallyimportant warning he gave about negligent
gratification.
Ooh, yeah, that one hits homefor a lot of people.
It's the trap of saving too much.

(02:50):
Driven by that scarcity mindset.
Maybe those financial genetics again.
Could be you end up hoarding,maybe missing out on important moments
like time with young kidsbecause you're working constantly
to save.
Or putting off that dreamtripuntil you're older.
And maybe your health isn't upto it.
Bad knees, like he said.
Yeah, exactly.
And for the sandwichgeneration, juggling saving for retirement,
maybe helping kids and parents.

(03:13):
That pressure makes thisnegligent gratification a real risk.
So how do you avoid that?
He had a take on retirementplanning, particularly for older
folks.
Yeah.
For those over 50 or 60, hesuggested thinking in phases.
Phase one, realizing, okay, myfinancial security is actually handled.
I'm good.
Okay.
Phase one is recognition.

(03:34):
Phase two is shifting focus tolifestyle, Maybe cutting back work
hours, actually using thatvacation time.
And phase three, full retirement.
Enjoying the fruits of that planning.
Right.
So let's pivot to someactionable investment tips he mentioned,
especially for getting kids started.
Okay.
So he touched on three main accounts.
First, the 529 for college savings.
And he mentioned that recent change.

(03:55):
Right.
You can roll over some of it.
Into a Roth IRA now up to $35,000.
Yeah.
Yeah.
It adds flexibility.
Though you could argue if it'sa sign that 529s aren't quite keeping
pace with college costs.
That's a fair point.
What else?
They have UTMA or UGMA accounts.
They're flexible.
Sure.
But the big catch, it becomesthe child's asset at 18.
Exactly.
Which can seriously impacttheir eligibility for college financial

(04:17):
aid because it counts heavilyin that expected family contribution
formula.
Good warning.
And the third, the Roth ira.
Powerful, but the child needsearned income.
Still, he mentioned that 30 by30 idea.
Get $30,000 invested by age 30 and.
The compounding tax free couldrealistically get you to your first
million by retirement.

(04:38):
It shows the power of starting early.
Okay, so for someone juststarting out, maybe a young person,
where do they begin?
Avoid getting burned early.
His advice was pretty clear.
Start broad.
Don't try to pick winningstocks right away.
Use low cost ETFs, like index funds.
Yeah.
Things like Voo or Spy thattrack the S&P 500.
You instantly getdiversification across 500 top US

(05:00):
companies.
It helps build positivemomentum without huge risks from
speculating.
Makes sense.
What about crypto.
Always a hot topic.
His take was moderation.
Everything in moderation.
So not avoiding it entirely,but keeping it small.
Like 1% to maybe 5% of yourtotal portfolio.
The thinking is if it goes tozero, you only lost a small bit,
but if it ticks off, theupside could be significant.

(05:22):
It's framed as a bet against,say, long term US Dollar devaluation
versus Bitcoin's limited supply.
A small calculated risk.
Interesting logic.
Okay, wrapping this up,looking at the big picture.
Investing over the long haul.
Yeah, his final thought, kindof his personal mantra was really
powerful.
Think in decades, not days or months.

(05:43):
Decades.
Bet on yourself, be patient.
And remember that phrase forwriting out the inevitable market
ups and downs.
This too shall pass.
Have that mental resilience.
Think in decades.
That's a great takeaway.
So that was our deep dive intoAndrew Gold's insights from about
that Wallet episode 315.
Lots of practical stuff inthere, definitely.
And if you found this helpful,please subscribe to the show.

(06:05):
Maybe leave us a five starreview if you liked it.
And absolutely check out thefull episode 315of about that Wallet
for even more from Andrew Gold.
Thanks for tuning in.