Wealth Formula Podcast

We haven't talked about cryptocurrency much lately. Admittedly, I am like everyone else who gets excited when the markets are going sky-high but quickly loses interest when markets are struggling. However, In times like these, regardless of asset class, it is critically important to stay rational. Let's take bitcoin as an example. As I write this Bitcoin is sitting just under $20K. It could absolutely go lower. But…for those of us who believe bitcoin is here to stay, does it matter? If you believe bitcoin is here to stay and that there is a finite amount of bitcoin that will ever be in existence, the price simply must go up over time as more people buy it and the market capitalization increases. This is an extraordinarily volatile market. But if you look at bitcoin price history, the trend is clearly UP. If that's the case, and you are a long-term holder/believer of bitcoin, you should be rejoicing about bitcoin prices today and strongly consider buying. This is a very difficult thing to do because ultimately we are wired to run away from danger (falling prices) and to run to pleasure (euphoric markets). But you have to rise above those instinctual impulses and be rational. That's how the best investors in the world, like Warren Buffet, differentiate themselves from the masses. Ok…so enough pep talk. Let's be practical. We are in a bear market. Many of us have lost significant value to our portfolios. The good news is that the tax rules for cryptocurrency are favorable—especially when it comes to locking in losses. As we wait for the bear market to end, it is a good time to make sure that we are aware of accounting principles and tax law as it relates to cryptocurrency. This will make it much easier when your portfolio explodes again! For that purpose, this week's Wealth Formula Podcast Features a CPA who specializes in cryptocurrency. Listen NOW!

It's time for another round of "Ask Buck". This week's episode includes questions on taxes, multifamily real estate investments and the Wealth Accelerator. Listen HERE!

It's been a while but this week's episode of Wealth Formula Podcast is the latest "Ask Buck" episode. As you know, most of the time I interview other people so I don't get a chance to talk to you directly. These episodes are great for learning. In fact, go back and listen to the last 10 "Ask Buck" shows and you will know as much as I do about personal finance! This week we will be talking a lot about taxes and the real estate market. Make sure to tune in!

Investing is hard enough without worrying about all the crooked stuff going on out there. When you add that to the picture, it's a miracle that most of us have actually made money investing. And if you think the nefarious activity is limited to the private space, you would be mistaken. Big money can manipulate public markets just as easily. Take Enron for example. The global financial collapse of 2008 exposed a lot of white-collar criminals. When the lending markets dried up it was like the tide went out and exposed all that were swimming naked. Of course, we had a front seat to the financial collapse in the United States beginning with the downfall of Lehman Brothers. But credit dried up globally and created chaos throughout the world. One of the most interesting stories is that of Iceland. My guest on today's Wealth Formula Podcast was one of the leading investigators into the Icelandic financial meltdown which was pound per pound the biggest financial meltdown in global history. Jared Bibler wrote a book on the topic with critics describing it as "Insatiable greed, flamboyant crimes, scheming politicians, dish-pan clanging housewives!" What else could you ask for? Tune in for a very entertaining conversation with Jared Bibler.

This week's episode of Wealth Formula Podcast is about emotional intelligence. Why would we talk about such things on a personal finance show? Well, let's define emotional intelligence for a moment. We all have emotions. If you want to see emotions in their rawest form, look at a toddler. One minute you might have an angel and the next you might have a complete meltdown and a demon from hell. Adults are no different. Emotional intelligence is the ability to step away from those emotions and examine why you are having them. Toddlers don't do that and only some adults really do. Why is emotional intelligence useful to have? Well, emotions can get us into trouble unchecked. We've all sent the text or email that we wish we hadn't in the moment. We all have those moments that we wish we had kept our mouths shut. As Warren Buffet says, " You can always tell someone to go to hell tomorrow." Buffet also says, "Be fearful when others are greedy, and greedy when others are fearful." Everyone knows that you should buy low and sell high, right? But when shit hits the fan, few are able to overcome emotions and do what they rationally know they should do. This week on Wealth Formula Podcast I talk to an expert in emotional intelligence who says that emotional intelligence can not only be measured, but also developed to optimize multiple facets in our lives. Maybe it can make you a better investor? Listen HERE

You've probably noticed that my emails have been pretty short the last few weeks. I've been in Europe so I'm letting the podcast speak for themselves for the most part. This week we go back to fundamentals. There's a reason why real estate is the foundation of the Wealth Formula personal finance ethos. There is simply nothing comparable in terms of risk adjusted returns and tax benefits. To reinforce these concepts, this week's podcast features a conversation with a CPA specializing in real estate. This is a must listen podcast. Enjoy!

When I think about all of what has happened to our economy over the past two decades, it's quite astounding. National debt has gone up by about 5x. Interest rates hovered at nearly zero for multiple years and we went through multiple shocks to the system like the 2008 meltdown and Covid. Again—all in the last two decades! This week's guest on Wealth Formula Podcast has seen a lot more than I have as he served in the Reagan administration at a time when Paul Volker used significant interest rate increases to bring down hyperinflation and he was deeply involved in the response to the Savings and Loans Crisis of the 1980s as well. Thomas Vartanian saw it all happen from the front row. His recent book, 200 Years of American Financial Panics: Crashes, Recessions, Depressions, and the Technology that Will Change it All captures the major themes of American Economic History. Tune into this week's show as we find out what he thinks about the economy today and what lessons from the past we can apply to try to get ourselves out of the mess!

There is a fine line between being a "quitter" and a pragmatic individual navigating life. Quitting has a very negative connotation in our culture. It's un-American and is associated with weakness and lack of grit. In reality however, quitting is often the best thing you can do and the sooner that you do it the better off you are. I'm a good example of a guy who has quit quite a few times and is much better off for it. For example, when I was in medical school, I was a hardcore student. They used to call people like me gunners. I was intense about my studies and got myself involved with lots of research projects and became the favorite student of the neurosurgery department. You see, at some point along the line I decided that I wanted to be a brain surgeon. I thought that the brain and the central nervous system were fascinating. In hindsight, however, I must admit that there were stronger drivers involved. I saw brain surgery as the top of the medical pecking order. Of course the idea of being a brain surgeon also appealed to me because of the social bragging rights that came along with it. After all, most people outside of medicine are pretty impressed when you tell them that you're a brain surgeon. So, I did what I had to do to get into a neurosurgical residency. I graduated with honors for medical school and scored very high on the required board exam used to evaluate residents. I also published multiple book chapters and peer reviewed articles in neurosurgery before I finished medical school. Because of that drive, I got into one of the top neurosurgery programs in the country that produced some of the most famous people in the profession. My grand scheme was working out beautifully. Then it happened. I started the program and, to my surprise, I wasn't really enjoying myself. Sure, I liked walking around with a white coat that said neurosurgery on it and tried to use it to impress cute nurses. I did feel pretty macho I must say. But it was not enough to get over the fact that I hated the hours. Very early mornings and very late nights were the norm on non-call days. When on call, any emergency meant I was up all night operating. Bleeding brains can't wait until the next morning. Then, I would have a full day of surgery the next day that I had to be alert and attentive for and try to learn something along the way. Boy…I really hated that. Curiously, I noticed that most of my fellow residents seem to get excited when the pager went off in the middle of the night. They got excited and filled with adrenaline when called to action—like Batman. Not me. When the pager went off in the middle of the night I would feel nothing but dread. It took me midway through my second year of neurosurgical residency to figure out that this was not going to work out. So I quit. At that point, I felt like I was in free fall. For years I had created this identity that I was living. It took thousands of hours to get there with lots of blood and sweat. Was it just a waste of time? Well, It probably was a waste of time but it could have been worse. I could have stuck it out for another five years and been miserable the rest of the way. My attending professors didn't seem to have such a great life either so it wasn't like there was light at the end of the tunnel. I ended up switching specialties and ended up in cosmetics (brains vs butts…what's the difference?) And of course after a few years of that, quit medicine altogether. I guess it just wasn't for me. Think of that for a moment. Four years of college, four years of medical school and seven years of postgraduate surgical training. And I just quit because I didn't want to do it anymore. Liberating. The moral of the story is that when you figure out that something is not working for you, move on quickly. It seems simple enough right? But how many people do you know who complain about their jobs every single day and talk about doing different things but never do? Relationships are no different. You usually know within the first few weeks if there is long-term potential. However, rather than break it off quickly, people often drag out relationships for months or years trying to make it work and sometimes even get married! Well, as a divorced guy, I'm not much of an authority on relationships. However, The larger theme here is quit while you are behind. Don't prolong the pain. There is plenty of gain to be had without enduring pain. My guest on this week's Wealth Formula Podcast is Steve Magness. He's written a book that tries to explain why being tough and resilient is not always the right thing to do for an individual. So, If you feel like a lab rat on a treadmill you'll definitely want to tune in to the show!

One of the consequences of inflation is increasing wealth disparity. Think about it for a moment. CPI indices only measure a basket of goods and services. But you and I know as investors that inflation helps us out with our investment portfolios as well. Asset inflation is a real thing. If you don't have the money to invest, you only get the downside of inflation. Prices for everyday stuff go up and it becomes harder and harder to get by. How bad can it get? Well we already have food insecurity in our own country…the richest most powerful country in the world. And there are pressures on food supplies globally now with draughts and the war in Ukraine, also known as the breadbasket of Europe. So are we heading to a worldwide food shortage? And if we are, what are the consequences to those at the top of the food chain? Maybe we don't go hungry but hunger is a big driver of social unrest globally. The world is already a highly volatile place. My guest on Wealth Formula Podcast this week studies the food supply and sheds light on the true extent of the problem. Make sure to tune in!