Investing with Intention: Long-Term Thinking in a Short-Term World

Episode Transcript

Speaker 1 (00:03):
Thirteen ten wiv A and Ask the Experts, joined this
morning by chartered financial analyst Tom Plumb. Of course, Tom
comes to us from Wisconsin Capital Management. You can learn
more about Tom. You can learn more about Wisconsin Capital
Management all on their website whizcap dot com. That's Wi
s c ap dot com. Tom, how you doing this morning?

Speaker 2 (00:24):
Well, we're good, good Sean. As we talked about earlier
off fine, this sun, it looks like it's very very close,
if not hitting an all time high for the United
States stats and major indices. So of course, uh, you know,
a day like this, probably nobody has any concerns or worries.

Speaker 1 (00:43):
No good day to get out to the laker, out
to the golf course. I guess we can let let
others worry about markets and other things for sure. Real quick,
we're actually going to talk about about some some of
the anxiety some folks may be feeling, which is which
is kind of interesting as we just start this conversation
off talk about where the markets have been, but it's there,
it's always present. We're going to get some details about

(01:04):
what some of those concerns are and get some great
insight from you. But Tom, real quick, Before we get
talking on this week's conversation, let's talk a little bit
about Wisconsin Capital Management, a little bit about your goals
and what's coming up. And of course I know we've
mentioned your son Nathan. You and your son Nathan worked
together at Wisconsin Capitol Management. Let's talk a little bit
about that relationship and kind of the bigger picture stuff.

Speaker 2 (01:28):
Well, Nathan, when you graduated from college, he worked overseas
for a few years, a year in China, a couple
of years in Japan, and when he came back, he
started to work for another financial organization because we wanted
to make sure that one he wanted to do this
and two that he was going to be able to

(01:49):
do things on his own. And then basically almost twenty
years ago, we started to work together. And then just
the last ten years we've been working exclusively together. And
I've been very fortunate because I'm working with the smartest
and the best partner that I've had.

Speaker 1 (02:09):
That is great. It's great to hear. And you know,
I think too about about having that close relationship, and
I've got a guess that obviously a father son team,
there's also there's also some things that you guys are
probably a little more comfortable to discuss and when it
comes to maybe making tough decisions, a little more openness there.
I mean, you know, you think about the strength of

(02:30):
family and that bond. It really is conducive to being
open and honest with each other about about really your analysis,
isn't it?

Speaker 2 (02:39):
Well, yeah, strong, there certainly is. And but the other
thing is that we're on the same path, you know,
the same mindset, so we don't have to go back
and try to kind of coodi each other on how
we should be thinking about different aspects of investing or
working with clients because we're on this same philosophical page. So,

(03:02):
you know, it's a great thing that way, because often
when you get a group of people, you're trying to
accommodate each other, you want to work together, and you
get one plus one. We pose one point two at
the most three or four. We're supposed to.

Speaker 1 (03:21):
Just talk this morning with Tom Plump sort of five
financial analystiz chartered financial analyst with of course, Wisconsin Capital Match.
We can learn more about Tom, Nathan and the whole
team online. The websites of course is wiz cap dot com.
It's Wi s c Ap, dot com and and Tom
has mentioned, of course, the market's always there's always some
news there, and of course working in the news industry

(03:43):
twenty four seven, you know headlines, whether it's you know,
wars and domestic issues, housing, all that stuff. Folks are
obviously very cued in on that, even things like government
debt levels and you know markets in those type of areas.
Let's talk a little bit about just kind of overview
first before kind of break down and get into some
of these areas. I'm a little bit of insight and

(04:04):
kind of put some of this stuff into into perspective
about some of that anxiety and some of the feelings
folks may have about that stuff.

Speaker 2 (04:12):
Yeah, Sean, you know it's counterintuitive that when the stock
markets hitting an all time high, you think that would
be because everybody feels happy and excited and feel very
favorable about the outpoot. Well, right now we actually are
seeing it on Our clients are coming and talking to
us because there's a lot of anxiety out there. You know,

(04:35):
they are worried, as you said, about the war, about
some of the domestic problems, but also about the affordability,
you know, housing affordability in different markets, other essentials, foods.
Growing up, you're seeing a lot about the government debt
levels and what that might mean for the future of
future inflation, and all of that still comes together and

(04:59):
the stock markets hitting an all time high. So people
are anxious. And when they're anxious, we often think about
in Mark Twain quote where we said, at times like these,
remember there's always times like these. You know, that's not
a great consolation. I mean, if you were drowning, or

(05:21):
a debt or you're feeling very anxious about the world,
you don't necessarily want statistics at things like that. But
what you do. What you can do is you can
learn from how people have dealt with the stress, especially
the financial stress, which is the business we're in in
the past, and get some lessons that can help you

(05:43):
deal with your stress and build for future.

Speaker 1 (05:46):
We think of some of that wisdom through experience as
well as we talk this morning with chartered financial analyst
Tom Plumb. Of course, Tom comes to us from Wisconsin
Capital Management. The website wizcap dot com. That's whiz cap
dot com, wys c ap dot com. You can learn
more about Tom and Wisconsin Capital Management, get to know
the team there. Great Day also I start that conversation,
you want to learn more and get an appointment where

(06:08):
you can learn more all on the website whiz cap
dot com. So Tom, let's kind of break some of
this stuff down. Is you know, as we're talking today
and looking at looking at the great markets, now is
probably a good time to be having these conversations, as
opposed to when when people are in distress and we
are hitting rough patches. Now is probably the ideal time

(06:29):
to be starting these conversations, isn't it.

Speaker 2 (06:32):
Exactly Sean you think about it, the best way to
avoid a bad outcome is by planning before it actually happens,
not reacting to bad news. So right now, if the
stock market's hitting an all time high and many portfolios,
because often we say it's not necessarily a stock market,
but a market of stocks sort of does depend on

(06:54):
what you own, but in general, the financials are pretty
favorable right now. And the way that you can reduce
your risk and your anxiety in the futures by planning today,
so so earlier you start taking advantage of some of
the compounding, some of the putting aside money for a

(07:16):
rainy day. It's never to like to start that.

Speaker 1 (07:20):
Is and Tom with that, with that conversation, do we
tend to make better decisions during good times? I think of,
you know, kind of using your analogy earlier about you know,
if if you're if you're taking on water and then
you're thinking, you know, you're you're panicking, trying to you know,
the boats taking on water, panicking what do we got
to do here as opposed to when you're smooth sailing,

(07:40):
Maybe have that plan in place for what happens if
and have that done beforehand. Then trying to trying to
work these things out on the fly.

Speaker 2 (07:48):
Right, I mean when the markets are going down and uh,
there's usually following or there are coincidental with that notes right,
and very emotional and we read everything everything's got the
pot and you should be really concerned and it's very
difficult not to make emotional decisions at that time. So
the time to make your decisions is when you're not

(08:12):
under the most stress, obviously. So that's why we talked
about planning, putting aside money, making sure that if you
have the potential using an ira or rock ira, we
say pay the landlord, you know, pay the grocer, but
pay yourself and pay yourself by planning and setting aside

(08:34):
money for your financial security in the future.

Speaker 1 (08:38):
It was interesting about that about I know, we exeg
one of our first program. As a matter of fact,
folks can go listen back and listen at the iHeartRadio
app and other podcast platforms. Just ask for the Wisconsin
Capital Management podcast. Folks can listen back to that. But
you talked about the strength of compounding. And you know,
we talk about even a small amount. Obviously the more
the better, but even just a little bit here and there,

(09:00):
and and and and actually, you know, planning to put
a little bit in here and it pays. It's it's
it can turn in to quite a bit of money
if if managed properly, can't.

Speaker 2 (09:09):
It exactly seany We still call the compounding of total
returns the age wonder of the world. And it's two factors.
It's when you put money in, how much money, sorry,
three factors, when you put money in, how much money
you put in, and then the compounded return for how

(09:32):
long and when you have time working for you you
can build significant financial security.

Speaker 1 (09:39):
You know, Tom, looking at some of the show notes,
I noticed something that that that really caught in my eye,
and something I hadn't thought about You had said invest,
don't speculate, and I thought that's I'd never thought of
phrasing it that way. What what do you Let let's
talk about what that exactly means and and why that's
such an important thing to keep in mind.

Speaker 2 (09:59):
Well, you're when you participate. If you think about, the
US economy probably grows at at least at four percent
a year phenomenal turns. It's been that way for probably
one hundred years, and if you participate in that, you're
going to benefit with that incredible compounding. But by invest,
instead of speculate, we mean don't go and buy some

(10:22):
product or try to guess what the timing of the
market should be, or whether or not you should short
it investment or buy things that our fads that are
currently really popular. But when you think about it, what's
the fundamental driver for that value to grow? You can

(10:43):
look at great companies, just think about what made them
great and try to find companies that then match that criteria.
So you know, if you think about the things that
you use every day, we use your credit cards, well,
these are MasterCard, American Express, those things they're there. Those

(11:07):
are real companies that are generating cash on a consistent basis.
Those types of investments can be the foundation for true investing,
not speculating. And by speculating, you know, there's thoughts that
can be fads by how popular they are today, but

(11:29):
you think about what it will take for them to
execute in the future consistently, and a lot of companies
aren't able to do that for any length of time.

Speaker 1 (11:40):
It's interesting when you say that, I feel like sometimes
we talk about some of those fad ones are the
ones that that your neighbor likes to tell you about,
Oh my goodness, this is the greatest thing I've had.
You know, it's been so great, And then you know,
right when you jump in is when all of a
sudden it starts going in the red and really read
and you're like, oh my goodness, what did I just do?
Talking this morning, of course with chartered financial analyst Tom Plum.

(12:01):
Of course, Tom comes to us from Wisconsin Capital Management.
Their website whizcap dot com. That's wiscap dot com. Great
day to learn more about Tom and the team. Also
a great day to start that conversation. Get to know
Tom a little bit more, pickuphone, give McAll, or of
course schedule deployment. Again, all that information available to you
online at whizcap dot com. That's wis cap dot com.

(12:22):
We'll talk a little bit more about about some of
the some of the stock markets, some of the numbers,
there's some of the trends. There also the importance of
investing and how the how that planning pays off with
details from Tom. We will do that next as ask
the experts with Wisconsin Capital Management continues right here on
thirteen ten Wi b A thirteen ten Wi b A.

(12:47):
Talking this morning with chartered financial analyst Tom Plum. Of course,
Tom comes to us from Wisconsin Capital Management to their website.
I hope you've had a chance to check out the site.
If not, I urge you to do that today. Maybe
if you're at the office already this morning or on
your way in when you get there, it's head on
over to whizcap dot com. We won't tell the boss.
As a matter of fact, the boss will probably be
excited that that you're taking interest in such an important topic. Again,

(13:08):
you can learn more online whiz cap dot com. A's
w y s c ap dot com and Tom talking
started this conversation off this week about the markets where
things are right now looking really really good. But again
there's still that that underlying anxiety and a lot of
folks looking at you know, some of the global things
and the news cycle, and there are reasons why people
are are a little bit on edge. So let's talk

(13:30):
about kind of those big news and the trends, and
and of course the timing of the market. Talking about
your about your sometimes your neighbor that has those great
stock tips. Let me be very cautious, don't you.

Speaker 2 (13:42):
You know? Seany we talked about the markets and how
they fit in with your overall financial plans. You know,
one of the things to remember is that no one,
no one consistently makes money timing the markets. So at
the same time that the stock market in the S
and B five hundred and nas are hitting all time

(14:04):
highs you it causes anxiety. Okay, where can it go
from here? It's already at an all time high. But
I tell people remember the fact that we're an all
time high means that every other all time high that
caused the same anxiety, you make money from that point

(14:26):
because today is higher. So you need to understand that
even though timing is difficult, planning is great. And participating
is what really makes money over time. We talk about
long term investing, we talk about something was our foundation

(14:46):
accounts and our profit sharing attention accounts. We call it
the trustees dilemma. You're going to be balancing today's needs
with the future needs because there's always going to be
future needs and there's challenges in their future. So the
same thing applies to you and I, and the way
to do that is through balance. And what we mean

(15:10):
by balance isn't just an asset allocation. People need balance
in their lives. They need to balance work, families, stress
and stress relief, paying your bills, paying yourself. Balance is
important in every aspect of your life, and it's very
important in setting up your financial security for the future.

Speaker 1 (15:33):
You know, we started this week's show talking about about
a little bit about relationships about of course, internally at
Wisconsin Capital Management, you get the great blessing of being
able to work with your son each and every day
and the importance of that relationship, the relationship with with
when it comes to to your your you know, your investments,
having a good relationship with your advisors and your analysis,

(15:55):
that's a very important one as well. Let's talk about
a little bit about you know, helping that that that
comfort to talking you know, as as a client talking
with you Tom and others, there is a real relationship
that develops. This is this is really important stuff, not
just for your clients, but obviously for you as well,
isn't it.

Speaker 2 (16:14):
Oh definitely for Sean. You know when you talk about
addressing all these needs and you know, obviously we have
a financial service company. But whoever, as you're dealing with
these different decisions and if you're uncomfortable talking to somebody,
find a financial planner or a financial advisor that's reputable

(16:38):
that gives you advice. We prefer people who don't get
paid by directing you to a certain type of investment,
to commissions. We rather see someone who is fee based.
But basically, you need to find someone who can give
you the advice for your personal situation. May have a

(17:02):
situation with your children, your parents, whatever, but you need
to address on how these markets and all these different
types of investments can help you create distance between you
and chaos. My wife was a personal a private pilot

(17:23):
for many years and as you could imagine, the riskiest
time is when you're closest to the ground because when
something goes wrong, you don't have the ability to fix
the situation very quickly. But if you happen to be
you know, two thousand, three thousand feet above the ground

(17:45):
and you get a little bump, you have a margin
of air. So it's really important for people to start
to figure out how they're going to get enough financial
security that they can take care of these bumps that
we're all going to go through.

Speaker 1 (18:00):
Really good perspective. And Tom one thing too that just
popped into my head as you were talking there about
about understanding how how advisors financial advisor A geta paid?
Is that like a is that a fair question? Like
like for somebody that has an interview with you, I mean,
is that something that they should be asking? Is is saying, Tom,
how exactly you know money? We all we all when
we offer a service, we do work for somebody. Obviously
we're all going to get paid for that. Is that

(18:21):
a fair question to be asking a potential advisor?

Speaker 2 (18:24):
Definitely, Sean, if you are working with someone and they
won't tell you how they're getting paid, so that you
can in your own heart feel that I understand if
there's any potential conflict of interest, but I can also
see are my interests in your interests aligned? That is
so important for building that trust relationship and making sure

(18:48):
that the future is beneficial for both you and your
financial advisor.

Speaker 1 (18:53):
And then before we wrap this this morning, Tom, I
want to ask you about that about you know, having
that conversation. I know one of the things that that
was that was great. I was really impressed when you
and I initially even had our first sit down meeting
and just and just how you know, how open and
friendly you were. It's important to have that that that
good relationship. And I sometimes I feel like it sounds weird,

(19:15):
but but you kind of get a feeling for for
people when you you know, when you get a chance
to meet face to face or have that conversation. I
know that's something for folks when it comes to their
investments as well. And I know you enjoy doing that.
Is just getting a chance just to talk with folks,
is setting up an appointment and getting to know you,
getting to know Nathan and kind of understanding more about
what you do. You love doing that stuff, don't.

Speaker 2 (19:35):
You, Oh? Definitely? And you know that is the key, Sean,
is that you know people, uh tell us how they
feel about what their children's capability is, what their relatives are.
They want you to understand how things come together for them.
And you really can't do a good job giving him

(19:57):
personal financial advice unless you know know how that financial
advice is going to fit into the rest of their lives.

Speaker 1 (20:04):
And as we talked this morning with Tom Plumb of
Wisconsin Capital Management, I'd love to get to know you again.
You can learn more about Tom and get to get
to an opportunity to set up an appointment. All you
do is head on over to the website whizcap dot com.
That's Wi scap dot com. Get that conversation going. Tom
would love to talk to you, love to get to
know you, see how things fit again. You can learn
more online the website whizcap dot com that's Wi s

(20:27):
cap dot com. Chartered financial Analyst, Tom Plumb. Tom, it's
always great chatting with you. Have a fantastic Dan. We'll
do it all again real soon.

Speaker 2 (20:35):
All right, Seawn, thank you very much.

Speaker 1 (20:37):
News comes your way next right here on thirteen ten
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