Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Well, going back to investing in Trading Lives sponsored by
Trading Academy. As always each and every week, I'm your host,
Josh Liloquist, talking about the dues and the dose. If
you don't know a stock from a rock, stay tuned.
We're going to talk more about the differences of the
different vehicles or the assets in these financial markets. And
if you're looking for retirement strategies, that's we're going to
cover on this next segment. On the last segment, we
(00:23):
covered those income strategies. Ways to use leverage in the markets,
being efficient with the capital that you have, so that
way you can be wise and not use everything that
you have. The stock market, you kind of have to
use all your dollars. It ties it up. There are
ways to use leverage very similar to a mortgage, and
that's what most people use in their everyday life. The
same concept you can apply in the financial markets and
(00:45):
investing and trading. And we had a lot of people
texting in and calling or going to the website for
these free trading and investing workshops if you miss those,
if you want to learn more about these different leveraged assets,
the futures market, the forex market, the options we have
clouds specifically on that. Simply text the word investing to
the number two ten two ten to get started today.
(01:06):
Text investing to the number two ten two ten, or
go to Tradecademy dot com and you can pick your
own seat and your own date there. If you're old
school like AL and I, all you got to do
is just call nine and five two eight one four
forty four ten. That's nine five two eight one four
forty four ten. We'll make sure we get a seat
end date free there as well. Also subscribe to the
(01:27):
podcast invest In Trading Live wherever you listen to your
podcasts have a podcasts iHeartRadio and Spotify. So al on
this next segment here. Since we covered that leverage on
the last segment, you also can do the same thing
in those retirement accounts as well, because you still want
to use the proper vehicle in those retirement accounts. Obviously,
with four oh one k's, there's certain things you can
(01:47):
and can't do with those if you have it with
your company sponsor with the company that you work for.
But a lot of them are actually getting pretty good
where you can direct them a little bit better yourself,
because if you think about this. Who is going to
have the best interest in your money? You or you
or I guess your kids, right, So there are strategies
to protect those four oh one k's. There are strategies
(02:09):
that you can apply even if it's with your company,
so that way you're not just at risk to the market.
Once you have the skill in the markets, well why
don't you do what's best for you, not for your
broker or your advisor. And that's why you need to
put the proper asset. Let's say you have an IRA, Well,
that's your money. You should be directing that yourself. And
(02:30):
there's different vehicles that do different things there as well.
So if you're listening right now and you have a
retirement account but you feel like you just don't have enough,
stay tuned. We're going to talk about how to build
those and strategies for that. Or let's just say you
have plenty in that retirement account. A lot of people
are coming to these workshops right now that have a
lot of money in their retirement accounts, but they want
(02:51):
to be able to keep it and leave a legacy
for their families as well. So let's talk through that.
Let's start with the camp of people that have a
lot of money in their retire retirementcoult And that's relative, right,
If you feel like you have a lot of money
in your retirement account but you're not necessarily concerned, but
you want to just ensure that you're protected and you
(03:14):
have that plan in place to leave a legacy for
you and your family when that time happens, Right, And
I want you to discuss a little bit about some
of the things that you can do to protect those accounts,
but also to continue to build those off of what
you already have, because that's actually how you help your
family get a legacy, is continuing to build those as well.
Speaker 2 (03:35):
Yeah, you know, you think about this for a minute.
Where does how do you pay your bills when you're working?
Where does your income come from when you're working, comes
from your job? Where does your income come from when
you're retired. And for a lot of people, it just
comes from them taking money out of their whatever they
have in their retirement account. And basically what they're doing
(03:57):
is they're diminishing that or dwindling down down the amount
of money they have in retirement without taking into consideration
enough the number of years that might have left to live.
Speaker 1 (04:07):
Dwind delean down. That sounds like an old wooden ship.
Speaker 2 (04:11):
Okay, I don't know you came up with that.
Speaker 1 (04:14):
Madelin whatever lneland like sheepswool.
Speaker 2 (04:16):
Whatever whatever goes on in that mind of yours. I
don't want to know. You never know, so but if so,
if you, But let's say that you have a large
amount of money your retirement account and that's what you're
going to rely on to live for maybe the next
twenty or thirty years. Well, we saw what happened during
several major draw downs in this market to people that
(04:37):
felt they had a lot back in the year two thousand,
when the SMP dropped fifty percent. In the year two
thousand and seven to two thousand and nine, the SMP
dropped fifty seven percent. Twenty twenty two, the market dropped
twenty percent during the pandemic, and three weeks had dropped
thirty four percent. What I'm getting at here is that
(04:59):
even if you have a substantial amount of money in
your retirement accounts, there is not a guarantee that is
going to stay there unless you have some protection in place.
Speaker 1 (05:08):
So what's a good asset? Are a good vehicle to
look into?
Speaker 2 (05:12):
Well, how about an insurance policy on your portfolio. You
have an insurance policy on your house, most people do.
You have insurance policies on your car?
Speaker 1 (05:19):
Most people do.
Speaker 2 (05:20):
You don't know for sure you're going to need to
use those policies. But if you have a portfolio of investments,
let's just say you've got a stock portfolio, you know
at some point in time it's going to go down
in value. Over the next ten to thirty years. We
may have several bear markers where it could be a
twenty to forty fifty percent draw down in the markets,
(05:42):
and if you're not protected, that's going to take away
a lot of what you might have been relying on.
So the insurance policy options can be used as an
insurance policy. And when you look at the big firms
that are out there, you know, we're the smart money.
The big firms, hedge funds, companies like miss Acts, JP Morgan,
they have sometimes billions of dollars in one position. They
(06:06):
cannot let that all be at risk, so they're using
options as insurance. And oftentimes we see, especially when we
have markets that we are looking at now, where we
have a market that is highly valued, you're probably going
to see a lot of these big firms putting on
options positions to protect themselves. In fact, you know, one
(06:28):
of the talking about the market the way it has
been performing, it's really highly valued. Now. One of the
things that we look at as to is to determine
whether the market is fairly valued is what we call
the buffet indicator, and that is where we look at
the total market cap and then compare that to GDP.
Warren Buffett uses it. He thinks he thinks that's the
(06:50):
best single indicator of value. When it's under one hundred percent,
then he sees some value there. Now it's over two
hundred percent. Now this is it may be the highest
it's ever been, which means that we are really highly
valued and there is a risk anything could happen. There's
catalysts out there, not saying it's going to happen. We
(07:11):
could continue this bull market for some time, we could
go through a retracement. Even if we go through a retracement,
I think long term we're going to see a substantial
bear market.
Speaker 1 (07:22):
So here at the Academy l we train people to
protect those right So it's the first things might be
a potential asset to look at for those people that
want to be able to protect those exactly.
Speaker 2 (07:34):
Protection is huge, and also risk management. You should never
make an investment or a trade unless you understand what
the risk is and you know how to control it.
If you can't, then you're just gambling.
Speaker 1 (07:46):
And then also too with the options market I mentioned earlier,
some people want to be able to leave that legacy
and use the options market to continue to build off
what they already have. So what are some of the
steps are the concepts that the academy teaches people about
options to continue.
Speaker 2 (08:04):
To build that. There's a number of strategies you can
use with options. One kind of shows you how to
supercharge the returns you have on a portfolio. Most people
that have a stock portfolio just hold on to it,
and just because you own a stock doesn't mean you're
getting the greatest benefit out of the potential movement. You
can use options to create better returns from whatever stock
(08:28):
portfolio you have. You can use options to generate returns
from stocks you don't even own. You can also, as
I mentioned, to use options as insurance.
Speaker 1 (08:38):
So it's I think kind of like an insurance company
and what they do they just collect.
Speaker 2 (08:41):
Premiums exactly exactly.
Speaker 1 (08:44):
So there are different concepts and techniques with retirement accounts
that the Academy teaches right now. With that, it does
start with a little bit of knowledge, and we're throwing
some knowledge at you right now as far as what
are some of the opportunities that you have. One of
the common themes I've been hearing with people that have
been coming into these free trading workshops l is they've
(09:08):
been searching for a place you can actually go because
it's very difficult to read a book or watch a
video on something because you don't even know where the
information is coming from. Number One, because everybody's a genius
on the internet. You know that. I'm also a French
model l Burchure, right, So anybody can make themselves look
smart on the Internet. But that's why we've been having
(09:28):
people come in and say, you know, I've been looking
for a place I can actually go to learn about
these concepts and actually be taught at like a real
like being taught, like how anything is taught, and it's
done in person. And that's why we have these free
investing and trading workshops in person locally at our academy.
We have a state of the Art facility right here
at Bloomington kind of by the Mall of America and
(09:51):
right off four ninety four, and it's easy to get
to it. But also we have locations all across the metro,
so we're coming to neighborhoods near you to make it
a little bit easier for you to to get off
that couch and get off of tiki talk and learn
about these financial markets. Gain that financial confidence based on
where you're looking to go. Whether it's wealth building or
wealth protection, it doesn't matter. There are strategies for both
(10:13):
and you can decide and have those choices. So if
you want to come into one of these free investing
in trading workshops, simply just text the word investing to
the number two ten two ten right now for two
seats for a free trading and an investing workshop. Or
you can just go to trading Academy dot com. That's
Trading Academy dot com and you can pick your own
seat and your own date there so you can bring
(10:35):
a friend with you as well. Most people bring their
spouse or significant other, and we've been seen a lot
of families come into which is pretty pretty cool. So
text investing to the number two ten two ten for
two seats. Coming up next, we're going to continue this
wealth discussion on how to actually build wealth with the
capital that you have. This is Josh Noal investing in
Trading Live. We'll be right back
Well, going back to investing in Trading Lives sponsored by
Trading Academy. As always each and every week, I'm your host,
Josh Liloquist, talking about the dues and the dose. If
you don't know a stock from a rock, stay tuned.
We're going to talk more about the differences of the
different vehicles or the assets in these financial markets. And
if you're looking for retirement strategies, that's we're going to
cover on this next segment. On the last segment, we
(00:23):
covered those income strategies. Ways to use leverage in the markets,
being efficient with the capital that you have, so that
way you can be wise and not use everything that
you have. The stock market, you kind of have to
use all your dollars. It ties it up. There are
ways to use leverage very similar to a mortgage, and
that's what most people use in their everyday life. The
same concept you can apply in the financial markets and
(00:45):
investing and trading. And we had a lot of people
texting in and calling or going to the website for
these free trading and investing workshops if you miss those,
if you want to learn more about these different leveraged assets,
the futures market, the forex market, the options we have
clouds specifically on that. Simply text the word investing to
the number two ten two ten to get started today.
(01:06):
Text investing to the number two ten two ten, or
go to Tradecademy dot com and you can pick your
own seat and your own date there. If you're old
school like AL and I, all you got to do
is just call nine and five two eight one four
forty four ten. That's nine five two eight one four
forty four ten. We'll make sure we get a seat
end date free there as well. Also subscribe to the
(01:27):
podcast invest In Trading Live wherever you listen to your
podcasts have a podcasts iHeartRadio and Spotify. So al on
this next segment here. Since we covered that leverage on
the last segment, you also can do the same thing
in those retirement accounts as well, because you still want
to use the proper vehicle in those retirement accounts. Obviously,
with four oh one k's, there's certain things you can
(01:47):
and can't do with those if you have it with
your company sponsor with the company that you work for.
But a lot of them are actually getting pretty good
where you can direct them a little bit better yourself,
because if you think about this. Who is going to
have the best interest in your money? You or you
or I guess your kids, right, So there are strategies
to protect those four oh one k's. There are strategies
(02:09):
that you can apply even if it's with your company,
so that way you're not just at risk to the market.
Once you have the skill in the markets, well why
don't you do what's best for you, not for your
broker or your advisor. And that's why you need to
put the proper asset. Let's say you have an IRA, Well,
that's your money. You should be directing that yourself. And
(02:30):
there's different vehicles that do different things there as well.
So if you're listening right now and you have a
retirement account but you feel like you just don't have enough,
stay tuned. We're going to talk about how to build
those and strategies for that. Or let's just say you
have plenty in that retirement account. A lot of people
are coming to these workshops right now that have a
lot of money in their retirement accounts, but they want
(02:51):
to be able to keep it and leave a legacy
for their families as well. So let's talk through that.
Let's start with the camp of people that have a
lot of money in their retire retirementcoult And that's relative, right,
If you feel like you have a lot of money
in your retirement account but you're not necessarily concerned, but
you want to just ensure that you're protected and you
(03:14):
have that plan in place to leave a legacy for
you and your family when that time happens, Right, And
I want you to discuss a little bit about some
of the things that you can do to protect those accounts,
but also to continue to build those off of what
you already have, because that's actually how you help your
family get a legacy, is continuing to build those as well.
Speaker 2 (03:35):
Yeah, you know, you think about this for a minute.
Where does how do you pay your bills when you're working?
Where does your income come from when you're working, comes
from your job? Where does your income come from when
you're retired. And for a lot of people, it just
comes from them taking money out of their whatever they
have in their retirement account. And basically what they're doing
(03:57):
is they're diminishing that or dwindling down down the amount
of money they have in retirement without taking into consideration
enough the number of years that might have left to live.
Speaker 1 (04:07):
Dwind delean down. That sounds like an old wooden ship.
Speaker 2 (04:11):
Okay, I don't know you came up with that.
Speaker 1 (04:14):
Madelin whatever lneland like sheepswool.
Speaker 2 (04:16):
Whatever whatever goes on in that mind of yours. I
don't want to know. You never know, so but if so,
if you, But let's say that you have a large
amount of money your retirement account and that's what you're
going to rely on to live for maybe the next
twenty or thirty years. Well, we saw what happened during
several major draw downs in this market to people that
(04:37):
felt they had a lot back in the year two thousand,
when the SMP dropped fifty percent. In the year two
thousand and seven to two thousand and nine, the SMP
dropped fifty seven percent. Twenty twenty two, the market dropped
twenty percent during the pandemic, and three weeks had dropped
thirty four percent. What I'm getting at here is that
(04:59):
even if you have a substantial amount of money in
your retirement accounts, there is not a guarantee that is
going to stay there unless you have some protection in place.
Speaker 1 (05:08):
So what's a good asset? Are a good vehicle to
look into?
Speaker 2 (05:12):
Well, how about an insurance policy on your portfolio. You
have an insurance policy on your house, most people do.
You have insurance policies on your car?
Speaker 1 (05:19):
Most people do.
Speaker 2 (05:20):
You don't know for sure you're going to need to
use those policies. But if you have a portfolio of investments,
let's just say you've got a stock portfolio, you know
at some point in time it's going to go down
in value. Over the next ten to thirty years. We
may have several bear markers where it could be a
twenty to forty fifty percent draw down in the markets,
(05:42):
and if you're not protected, that's going to take away
a lot of what you might have been relying on.
So the insurance policy options can be used as an
insurance policy. And when you look at the big firms
that are out there, you know, we're the smart money.
The big firms, hedge funds, companies like miss Acts, JP Morgan,
they have sometimes billions of dollars in one position. They
(06:06):
cannot let that all be at risk, so they're using
options as insurance. And oftentimes we see, especially when we
have markets that we are looking at now, where we
have a market that is highly valued, you're probably going
to see a lot of these big firms putting on
options positions to protect themselves. In fact, you know, one
(06:28):
of the talking about the market the way it has
been performing, it's really highly valued. Now. One of the
things that we look at as to is to determine
whether the market is fairly valued is what we call
the buffet indicator, and that is where we look at
the total market cap and then compare that to GDP.
Warren Buffett uses it. He thinks he thinks that's the
(06:50):
best single indicator of value. When it's under one hundred percent,
then he sees some value there. Now it's over two
hundred percent. Now this is it may be the highest
it's ever been, which means that we are really highly
valued and there is a risk anything could happen. There's
catalysts out there, not saying it's going to happen. We
(07:11):
could continue this bull market for some time, we could
go through a retracement. Even if we go through a retracement,
I think long term we're going to see a substantial
bear market.
Speaker 1 (07:22):
So here at the Academy l we train people to
protect those right So it's the first things might be
a potential asset to look at for those people that
want to be able to protect those exactly.
Speaker 2 (07:34):
Protection is huge, and also risk management. You should never
make an investment or a trade unless you understand what
the risk is and you know how to control it.
If you can't, then you're just gambling.
Speaker 1 (07:46):
And then also too with the options market I mentioned earlier,
some people want to be able to leave that legacy
and use the options market to continue to build off
what they already have. So what are some of the
steps are the concepts that the academy teaches people about
options to continue.
Speaker 2 (08:04):
To build that. There's a number of strategies you can
use with options. One kind of shows you how to
supercharge the returns you have on a portfolio. Most people
that have a stock portfolio just hold on to it,
and just because you own a stock doesn't mean you're
getting the greatest benefit out of the potential movement. You
can use options to create better returns from whatever stock
(08:28):
portfolio you have. You can use options to generate returns
from stocks you don't even own. You can also, as
I mentioned, to use options as insurance.
Speaker 1 (08:38):
So it's I think kind of like an insurance company
and what they do they just collect.
Speaker 2 (08:41):
Premiums exactly exactly.
Speaker 1 (08:44):
So there are different concepts and techniques with retirement accounts
that the Academy teaches right now. With that, it does
start with a little bit of knowledge, and we're throwing
some knowledge at you right now as far as what
are some of the opportunities that you have. One of
the common themes I've been hearing with people that have
been coming into these free trading workshops l is they've
(09:08):
been searching for a place you can actually go because
it's very difficult to read a book or watch a
video on something because you don't even know where the
information is coming from. Number One, because everybody's a genius
on the internet. You know that. I'm also a French
model l Burchure, right, So anybody can make themselves look
smart on the Internet. But that's why we've been having
(09:28):
people come in and say, you know, I've been looking
for a place I can actually go to learn about
these concepts and actually be taught at like a real
like being taught, like how anything is taught, and it's
done in person. And that's why we have these free
investing and trading workshops in person locally at our academy.
We have a state of the Art facility right here
at Bloomington kind of by the Mall of America and
(09:51):
right off four ninety four, and it's easy to get
to it. But also we have locations all across the metro,
so we're coming to neighborhoods near you to make it
a little bit easier for you to to get off
that couch and get off of tiki talk and learn
about these financial markets. Gain that financial confidence based on
where you're looking to go. Whether it's wealth building or
wealth protection, it doesn't matter. There are strategies for both
(10:13):
and you can decide and have those choices. So if
you want to come into one of these free investing
in trading workshops, simply just text the word investing to
the number two ten two ten right now for two
seats for a free trading and an investing workshop. Or
you can just go to trading Academy dot com. That's
Trading Academy dot com and you can pick your own
seat and your own date there so you can bring
(10:35):
a friend with you as well. Most people bring their
spouse or significant other, and we've been seen a lot
of families come into which is pretty pretty cool. So
text investing to the number two ten two ten for
two seats. Coming up next, we're going to continue this
wealth discussion on how to actually build wealth with the
capital that you have. This is Josh Noal investing in
Trading Live. We'll be right back
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