July 18, 2025

Who's Teaching Your Kid About Money?

What do you do when you’ve made millions, but don’t know what to do with them? Walter Clarke saw this firsthand and set out to fix it, not by selling, but by teaching.

From helping wealthy entrepreneurs understand their finances to writing 401Kid to teach kids about money early, Walter’s mission is clear: empower people before they get taken advantage of.

Oh, and he’s also a 62-year-old Ironman athlete training for a 100-mile ultramarathon. His secret? Pushing physical limits to build mental strength—on the track and in life.

This episode is packed with real money talk, mindset shifts, and lessons for raising financially smart kids.

00:05 - Meeting Walter Clark

05:15 - Financial Education and Family Offices

14:48 - Extreme Endurance Challenges

22:14 - Running into David Goggins

29:07 - The 401kid Book

38:13 - Teaching Kids Financial Freedom

45:28 - Entrepreneurship and Life Skills

WEBVTT

00:00:05.570 --> 00:00:07.011
okay, so welcome to our podcast.

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This is a little bit different today because this podcast is a spin-off of our radio show.

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This is the podcast, the john j J Van Ness podcast.

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My guest, walter Clark.

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Walter, I'm kind of nervous, my wife said on the way over.

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She goes, you seem nervous, I go, I am nervous.

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I'm nervous because the field you're in I don't understand it completely.

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But you and I met about a month ago, hit it off in Atlanta at this sauna retreat with Jesse Yetzler's house, right, we hit it off and you live here in Phoenix, I live here in Phoenix.

00:00:52.119 --> 00:01:06.959
And then we connected again and after spending several hours with you, I was fascinated by you and I was like you know, I got this podcast where I'm interviewing people that I think are very interesting and I was like I wonder if I could just talk to you and just pick your brain on stuff, cause I thought you were so interesting.

00:01:06.959 --> 00:01:15.248
So with that, walter Clark, I'm probably gonna make a lot of mistakes, I'm probably gonna say some things that are really dumb, but if you're laid back enough, I hope you don't mind.

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Yeah, there are.

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There are no.

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There are no dumb questions in, so okay, fire away all right.

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So I you know what I also did.

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I also, uh, asked chachi bt to do a deep dive into you and come up with questions for me to ask you too.

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So I might do that too at some point.

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Perfect, when I'm like, oh my god, I'm lost.

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He's too smart.

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Uh, who is walter clark?

00:01:36.911 --> 00:01:37.933
No, just kidding.

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So what you like, you do the family wealth thing right yeah, I run a run a family office here.

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My background really started in 95 in the business and then in kind of interesting through a lunch I had with a gentleman who sold a very significant business in town.

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He was iconic car dealer.

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Talked about his frustration with the language and understanding of the investment world, which I thought was fascinating, because you make an assumption based on how successful are that they?

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They kind of know everything.

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Right.

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And so he knew everything about the car business and nothing about finance.

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And so now that he had a lot of money and he would walk into these, these advisors and these people selling them stuff, he said he was clueless on how to interact with them.

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So I thought that was interesting and so you said let me help you well, no, I, I said he.

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I said well, what do you need?

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He said I need to get educated and not sold.

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And I thought, oh, that's interesting.

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And so I had a partner at the time and and we created a curriculum based on his guidance and back in 99 we went to asu and voila restarted the program at asu in 1999 there's like a class that you yeah, it was a class geared towards people that came into sudden money, a liquidity event it's either an inheritance, uh, divorce, uh, business transaction, uh some sort of major liquidity event that takes you from one economic event to another and when you, when somebody shows up at your door, you think it's an amazing thing you get a bucket of money dropped on your doorstep.

00:03:15.695 --> 00:03:21.030
There's a tremendous amount of responsibility in that and also a tremendous amount of vulnerability.

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You're like you don't even know what to do, how to do it, what the terminology is, and you feel at a, at a huge disadvantage to the industry, and so our class was really to close that, what we call an information gap.

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So we empower families, individuals, so they can make better decisions and be better informed when people are offering them investment products.

00:03:49.169 --> 00:03:51.056
But you never worked with the car dealer guy.

00:03:51.056 --> 00:03:51.960
He just inspired you.

00:03:52.260 --> 00:03:53.204
No, we never Does.

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He know that.

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Now, what's that?

00:03:54.807 --> 00:03:55.549
Does he know what?

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What happened?

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Oh yeah, yeah, no, he's now deceased.

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It was Lou Grubb.

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Oh really, yeah, and Lou was was an iconic guy.

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So Lou really tracked what we were doing.

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We went on, we started ASU and we went on to I don't know eight or nine different universities around the country.

00:04:10.848 --> 00:04:13.027
We've taught at UCLA and UC Berkeley.

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We even did a program down at the Tech of Monterey, but there's just a common theme, because people that create wealth are really good at that thing.

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So Lou is great at the car business and so he just never really had a need in the money business.

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But since he sold his dealerships he now had a new business and he just didn't like being vulnerable.

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Nobody likes being vulnerable.

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Nobody likes walking in and say, well, john Jay, I got to trust you, I hope you're going to do the right thing.

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That's not where you want to come from, you want to come from an educated perspective so you can match your knowledge and understanding, and so that's really what we taught.

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We taught structure and process and really empowered people, and we had all walks of life come to our program over the years of, you know, engineers and MBAs and all kinds of different people that had the same common theme educate me, don't sell me.

00:05:10.007 --> 00:05:10.750
So are people?

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Are graduates of your program, have they gone on to them?

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They themselves become wealthy or they themselves now are wealth management people.

00:05:16.225 --> 00:05:16.788
No, they're not.

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We didn't teach to wealth management people.

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We didn't really want those guys in, because that's a different educational program.

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We wanted to teach to the money.

00:05:25.560 --> 00:05:39.764
Okay, and what does the money need to understand, whether or not they want to try to do it themselves, or if they work with the wealth industry, then what do they need to look for and how do they hire and how do they evaluate?

00:05:39.764 --> 00:05:44.742
And really it was just an a to z about hey, if you, if you got a bunch of money, we.

00:05:44.742 --> 00:05:49.372
We had one guy, fascinating guy, probably the most eclectic, fascinating guy.

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He was employee number 21 at Google and he created Gmail and went on to do like amazing things.

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And he walked in.

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He's 30 years old, worth hundreds of millions of dollars, and he just said show me behind the curtain.

00:06:02.444 --> 00:06:04.569
That's it?

00:06:04.589 --> 00:06:05.172
What year was this?

00:06:05.560 --> 00:06:10.932
This was, oh God, this is probably you know, 06, 07.

00:06:11.220 --> 00:06:12.687
Okay, because you know what's funny about that right.

00:06:13.021 --> 00:06:18.000
You know, google went public, I think you know, but it was interesting because it was so funny.

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His email address he says I want to meet with you.

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His email address was his first name At Google, At googlecom okay, so funny story I was about.

00:06:27.427 --> 00:06:37.084
I was about to say when you brought up luke grubb this is the thing about walter that I've discovered is that you and I have these paths that have crossed in many different ways, because I have a luke grubb story too.

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I have two different stories for that.

00:06:38.187 --> 00:06:40.141
But let me jump to the google thing.

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Uh, one of my wife's best friends who was in our wedding, um, we, we were, we met and we got, we were dating in san diego and one of my wife's best friends was working for uh, what was it?

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The san diego journal, the san diego business journal, and it's a couple years out of college.

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So this is, this is like.

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I think it was like 96, 97, 95, 96 or something like that.

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And she was quitting the san diego business journal to go join a startup, and it was that.

00:07:05.410 --> 00:07:07.593
And she was quitting the san diego business journal to go join the startup, and it was google.

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And she was the third person.

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Her email is carrie at googlecom and I remember telling her going are you stupid?

00:07:16.168 --> 00:07:22.045
Why will you leave the san diego business journal to go to this startup no one's ever heard of before?

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Right, I mean, now you know she drives ferraris and Lamborghinis and Rolls Royces everywhere she goes and she cashed out pretty big.

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Right Now she's at Reddit.

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Now she's at Reddit right now.

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So that's a Walter path.

00:07:33.319 --> 00:07:52.910
A couple days ago, you and I, when we were hanging out at the Global Ambassador after I left there, you know Walter, you know I had people because back the next day for something and he just brought a blue grub, um, my wife, who just met her dad as a car dealer, or was a car dealer too, he sold out.

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He was he pals with blue grub.

00:07:53.512 --> 00:07:53.932
Yeah, they, oh yeah.

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They were good friends with the grub and a good friend of mine.

00:07:55.377 --> 00:07:59.940
About 78 months ago I was in cancun getting stem cell I'm a big stem cell freak, uh, uh.

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And I was in mexico getting stem cells next to a guy, me, and the guy hit it off and he was from here too and he's.

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I need to get my cardio up.

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So him and I started hiking about twice a week, sometimes more than that, and he lives in the house that Lou Grubb built.

00:08:14.906 --> 00:08:18.848
Weird, right, I got Lou Grubb, I got Walter connections.

00:08:18.848 --> 00:08:24.331
I mean, I know it's not, but an interesting fact about his house is at one point he had the tallest tree in Arizona.

00:08:24.331 --> 00:08:27.791
It was a maple and it was Lou Grubb's tree.

00:08:27.791 --> 00:08:30.733
Well, you know I know it's weird.

00:08:30.752 --> 00:08:33.475
So what was kind of fascinating about the story?

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So ASU as an organization was actually afraid of a financial class.

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So we wrote it and went through all the due diligence and was with them for a year and Lou would always check in with us How's it going, how's it going, how's it going?

00:08:48.962 --> 00:08:50.106
And and finally they finally said you know what?

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We're not really sure we want to do this because they were afraid that we were going to recommend something and then that was going to go bad and that they were going to get sued.

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We had really told them that our class was process driven and not not opportunity driven.

00:09:02.765 --> 00:09:05.028
So Lou said hang on a second.

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And he called me two days later and said you're approved.

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And I said what'd you do?

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And he said well, laddy Corr is a good friend of mine, prior to Michael Crow being the president of ASU called Laddy Corr and said Laddy, you got to do this class because it's for people like me and all the others that need to be educated without a, without a brochure, because you can imagine Lou's transaction hit the paper.

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So everybody knew what the transaction was and and the approximate value.

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So he had everybody under the sun the real estate guys, the insurance guys, the wealth guys, the stock guys, everybody in their son was selling them something.

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And Lou is such a nice guy that if somebody would call him and say, hey, can I grab 10 minutes of your time, he would say yes, and he just was beside himself at just the inability to kind of sort it all out.

00:09:55.702 --> 00:09:56.506
So what was that number?

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I'm just using the paper.

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What was?

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What was it?

00:09:58.576 --> 00:10:03.927
It was 100 million so he sold for 100 million back in 96 right, wow so, wow.

00:10:03.927 --> 00:10:10.345
So since then, right now, like do you manage 10 families, 50 families, six, six families?

00:10:10.345 --> 00:10:20.072
Yeah, do you take new clients, or that's if it's the right fit so it's kind of like the firm yeah it's the right.

00:10:20.091 --> 00:10:29.469
we, we do things very specifically and have a very specific model and and some people fit really well into that and some people don't- Are they well-known families in Arizona or all over the country?

00:10:29.469 --> 00:10:34.370
Well, we sprinkle between San Francisco, LA, and here in North Carolina.

00:10:34.971 --> 00:10:37.927
Oh, but these families own businesses all around town.

00:10:37.927 --> 00:10:39.490
Yeah, businesses, we would know.

00:10:39.490 --> 00:10:41.922
Is it like a doctor thing You're not allowed to say who it is?

00:10:42.143 --> 00:10:43.043
Yeah, it's fair.

00:10:43.043 --> 00:10:46.027
There's a lot of confidentiality of this stuff.

00:10:46.706 --> 00:10:48.808
So what are some numbers Like this story?

00:10:48.808 --> 00:10:55.657
It sounds like those people you always hear about that win the lotto and they don't know what to do with their money, right, and then they go broke, or a lot of like pro athletes.

00:10:55.657 --> 00:11:03.811
Yep, they get all this money and you always hear about so many career making millions and millions and millions and now they have nothing right.

00:11:03.831 --> 00:11:11.082
Yeah, yeah, we actually got really really close to doing a program with the nba, uh, but but unfortunately it just it didn't happen.

00:11:11.082 --> 00:11:16.384
You need a certain, you need a commitment and a certain amount of time with people in order to get them educated.

00:11:16.384 --> 00:11:22.066
You can't do it kind of haphazardly, you can't do it you know one hour here at a lunch or you got it.

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It's got to be a committed process.

00:11:24.892 --> 00:11:27.666
The program that I taught was 18 hours, six weeks.

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You know three hours once a week and it was homework and reading and worksheets.

00:11:33.565 --> 00:11:34.667
But you're not teaching now, are you?

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I haven't for a while.

00:11:36.551 --> 00:11:40.284
So what's a day like for you, because I know you're also in the health and wellness Like you get up, at what time?

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What do you do?

00:11:41.668 --> 00:11:45.094
Well, I mean'm training, uh, kind of on on the side.

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I'm training for an ultra marathon which is 100 miles 100 miles at in leadville.

00:11:49.629 --> 00:11:55.429
So that's that's kind of um a personal challenge that I'm, that I'm taking have you ever done that before?

00:11:55.450 --> 00:11:56.052
100 miles?

00:11:56.480 --> 00:12:02.730
no, I don't, I don't, I don't like to run, so um, it's uh, it's a really, it's a uh, it's really.

00:12:02.730 --> 00:12:06.075
It's been a really amazing mental process for me.

00:12:06.075 --> 00:12:13.568
I've done a lot of extreme events that have tested me in different ways, but I think this will be the toughest thing I've ever done.

00:12:13.880 --> 00:12:14.563
What are some things you've done?

00:12:14.563 --> 00:12:15.166
Triathlons.

00:12:15.860 --> 00:12:17.086
So I've done four Ironmans.

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I actually did one Ironman seven months after full hip replacement with a kid that had cerebral palsy.

00:12:26.250 --> 00:12:34.652
So I carted around 140 pounds for 17 hours and my doctor said that was impossible to be able to do that.

00:12:34.652 --> 00:12:39.873
And you know again, mindset and discipline and having a plan.

00:12:39.873 --> 00:12:43.488
And so ended up doing that and finished it.

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Finished with 20 minutes to spare.

00:12:45.032 --> 00:12:59.110
And then I did the hardest mountain bike race in the world, which is called the Cape Epic, and that's an eight day mountain bike race in South Africa, and so that was a different race because it was a multi day.

00:12:59.110 --> 00:13:03.171
So we were on the bike seven to nine hours a day for eight days.

00:13:03.820 --> 00:13:05.005
How do you plan for that?

00:13:05.005 --> 00:13:07.389
Like I rode a bike three miles and my butt hurt.

00:13:07.389 --> 00:13:11.870
Like how do you I got to believe nine hours on a bike, your butt had to hurt.

00:13:12.071 --> 00:13:23.034
Yeah, I mean, it doesn't matter what seat you wear or what pad you have, you hurt everywhere, right, I mean it's not just your butt, it's your hands, it's your neck, it's everything, and you hurt in a way that is different.

00:13:23.335 --> 00:13:23.554
Right.

00:13:23.654 --> 00:13:25.657
And then how about you do that?

00:13:25.657 --> 00:13:28.638
And then you wake up the next day and you do it again for seven more days.

00:13:29.660 --> 00:13:31.948
Is there recovery in between or no, Not really.

00:13:32.039 --> 00:13:38.711
I mean we were slow and so the pros do it super fast, but by the time we got in it went anywhere from four to six at night.

00:13:38.711 --> 00:13:44.773
You leave at 7 to 7.30, 8, and you eat.

00:13:44.773 --> 00:13:46.886
You're not moving really fast, you.

00:13:46.886 --> 00:13:49.485
You take a shower, you eat, you get a massage and to go to bed.

00:13:50.187 --> 00:13:50.388
When?

00:13:50.388 --> 00:13:51.429
When is the ultra marathon?

00:13:52.111 --> 00:13:52.941
Uh August 15th.

00:13:53.322 --> 00:13:56.268
And how many miles have you done at one time training for that?

00:13:57.208 --> 00:13:57.690
Uh, 30.

00:13:57.690 --> 00:13:59.453
Wow.

00:13:59.453 --> 00:13:59.940
So now it's.

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I'm in ramp up mode right now.

00:14:01.484 --> 00:14:19.331
I've done, I've run five marathons in the last seven months and so my body's got a lot of base of a volume on it and you learn a lot about yourself and how your body holds up with injury and little knickknacks and getting sick and all those things that are all part of the all part of the journey.

00:14:19.331 --> 00:14:20.153
That's incredible.

00:14:20.500 --> 00:14:21.283
Like, what's your like?

00:14:21.283 --> 00:14:22.788
Are you running at a fast pace?

00:14:22.788 --> 00:14:23.929
Do you have you paced your miles?

00:14:24.470 --> 00:14:32.395
yeah, I mean, it's really not a speed race right um, I do some speed training, but it's mostly just endurance, you know long and and steady and and nutrition.

00:14:32.395 --> 00:14:35.570
So when you're running that long and that far, what about when you're not racing?

00:14:35.610 --> 00:14:36.534
are you watching your nutrition?

00:14:36.576 --> 00:14:39.903
are you carb loading like what's the I mean I, I just, I eat pretty healthy.

00:14:39.942 --> 00:14:44.207
So you do, you drink no ever like that's not, that's no.

00:14:44.207 --> 00:14:46.250
Not because you're training, you just don't drink, right right.

00:14:46.311 --> 00:14:47.831
Wow, stopped that when I was 22.

00:14:47.831 --> 00:14:48.754
Oh, that's good.

00:14:48.754 --> 00:14:50.254
That's a whole other story, is it?

00:14:50.254 --> 00:14:51.235
That's a different podcast.

00:14:51.235 --> 00:14:53.065
We cover it all here, man.

00:14:54.881 --> 00:15:00.301
I mean when you do a, you know, when you and I were just sitting a couple weeks ago with Jesse Itzler.

00:15:00.301 --> 00:15:00.740
Yeah, Jesse Itzler.

00:15:00.880 --> 00:15:01.042
Yeah.

00:15:01.261 --> 00:15:04.485
And that guy runs ultra marathons and does all these incredible things.

00:15:04.485 --> 00:15:06.846
When you do that, are you goal setting?

00:15:06.846 --> 00:15:08.109
Do you write these things down?

00:15:08.369 --> 00:15:15.216
You teach yourself physical mindset, which translates into business mindset.

00:15:15.216 --> 00:15:22.565
Like we, we come into business differently.

00:15:22.565 --> 00:15:30.342
You know we have fears and insecurities that hit us a different way and we talk ourselves out of doing things in business, whether it's a new venture or something we don't know how to do, or I don't want to look stupid, or you know all that stuff.

00:15:30.342 --> 00:15:38.330
And when you, when you take on big physical challenges, you're you're kind of training your mind to transcend things that make you uncomfortable.

00:15:39.091 --> 00:15:56.655
And so I like the parallel, I like building that muscle physically, which then translates, see, emotional challenges are harder to me, are harder to overcome because they're a lot more subtle and they're they're they kind of way that they exist in your mind.

00:15:56.655 --> 00:16:03.149
They're sort of covert and how they want to try to have you not do what you intend to do.

00:16:03.349 --> 00:16:06.214
Are these things like ultra marathons and Ironmans?

00:16:06.214 --> 00:16:07.254
Is that like an addiction?

00:16:07.254 --> 00:16:09.143
I mean it sounds like.

00:16:09.143 --> 00:16:12.682
I mean that's I just like, I can't imagine, I can't, even I can't.

00:16:12.682 --> 00:16:13.927
I tried today on the treadmill.

00:16:13.927 --> 00:16:18.648
I was walking on the treadmill today before I worked out and I thought let me just do a little sprint.

00:16:18.648 --> 00:16:20.547
And I'm not trying to be funny.

00:16:29.019 --> 00:16:30.063
I did three seconds and I was like I'm out of a run.

00:16:30.063 --> 00:16:31.207
I don't think it's an addiction, I think it's a lifestyle.

00:16:31.207 --> 00:16:32.995
I think it's a lifestyle of what you're committed to and how you want to live your life.

00:16:32.995 --> 00:16:34.120
Now, in any endurance there's a, there's sort of a build.

00:16:34.120 --> 00:16:35.000
You know there's.

00:16:35.000 --> 00:16:36.743
You know, when I started triathlons, I did a.

00:16:36.743 --> 00:16:41.927
I did a sprint distance, which is relatively short, and then I did an, an Olympic distance.

00:16:41.927 --> 00:16:44.211
And then somebody said, hey, let's do a half Ironman.

00:16:44.211 --> 00:16:47.214
And I'd never even thought about doing a full Ironman.

00:16:47.214 --> 00:16:49.155
I mean, that was like impossible.

00:16:49.155 --> 00:16:54.379
So I did a half and then I did the half and I'm like there's no way I could go another minute.

00:16:54.379 --> 00:16:58.447
And then, you know, a month and a half later I was doing a full.

00:16:58.961 --> 00:17:04.542
But this ultra marathon you're doing in August, back in November, or did you write this down?

00:17:04.542 --> 00:17:09.229
I want in 2025, I want to do an ultramarathon, like what made you want to do the ultramarathon.

00:17:09.689 --> 00:17:29.807
Well, it was kind of the next thing, because I don't really like to run and running, running long distances it's it's absolutely a mental challenge, you know, after you get beyond 10 miles, and so I really wanted to be part of that, and then a couple of my daughter's friends had signed up for it and they're like, hey, let's, let's do that.

00:17:29.807 --> 00:17:33.651
So I'm competing with a couple of 25 year olds and I'm 62.

00:17:33.651 --> 00:17:35.792
And so they don't know what's coming.

00:17:36.113 --> 00:17:39.537
So are you in better shape now with your hips replaced than you were before.

00:17:39.777 --> 00:17:40.017
Oh yeah.

00:17:45.059 --> 00:17:47.088
Like there's no pain in your hips, even when run 30 miles, there's any kind of pain at all.

00:17:47.088 --> 00:17:47.813
Like you don't even know that you.

00:17:47.813 --> 00:17:56.173
Well, when you, when you think about when you do amazing things and you do big things, there's a there's a tremendous multiplier to yourself and others.

00:17:56.173 --> 00:18:12.392
So, like if you go into phoenix sports med today, you walk through the hallways and there's there's nothing but professional athletes that have gotten you know, tomm, tommy John surgery and knee replacements and all that, but in the exam and consultation room there's no professional athletes.

00:18:12.392 --> 00:18:20.413
There's just a poster of a 52-year-old guy pushing Patrick Utitas, who has cerebral palsy, across the finish line at Ironman.

00:18:20.413 --> 00:18:29.381
And so when people say, hey, what's my life going to be like, they can't translate or relate to a professional athlete because they're so far removed from that.

00:18:29.461 --> 00:18:29.662
Right.

00:18:30.021 --> 00:18:38.846
But a 52 year old guy pushing 140 pounds for 17 hours, they can relate to that did that, get national news when you did that?

00:18:38.846 --> 00:18:39.689
Uh, I don't.

00:18:39.689 --> 00:18:41.517
I don't know, because that story sounds familiar to me.

00:18:41.517 --> 00:18:43.726
Yeah, could have you don't know.

00:18:43.885 --> 00:18:46.756
Yeah, so then after the ultra marathon, what's next?

00:18:46.756 --> 00:18:56.392
I don't know everest, we'll see one of those things I don't know well when you do stuff like sauna, you know because you, you and I met in the sauna uh, do you try to do extreme temperatures?

00:18:56.392 --> 00:18:58.057
Do you try to go for longer distance there too?

00:18:58.565 --> 00:19:01.207
No, I mean, I always try to challenge myself, but it's not.

00:19:01.207 --> 00:19:02.531
There's never like kind of an end.

00:19:03.045 --> 00:19:04.873
Do you have advice for anyone watching this?

00:19:04.873 --> 00:19:07.594
That's maybe I mean like I don't want to run.

00:19:07.594 --> 00:19:13.134
I hate running, but talking to you now makes me want to learn to run, because I also think I have bad running form.

00:19:17.924 --> 00:19:18.488
Do you bad running form?

00:19:18.488 --> 00:19:19.009
Do you work on your form?

00:19:19.009 --> 00:19:19.432
You have a coach?

00:19:19.432 --> 00:19:20.015
Yeah, you have a coach.

00:19:20.015 --> 00:19:20.316
Yeah, I had to.

00:19:20.336 --> 00:19:21.421
I had to relearn how to run after my hip replacement.

00:19:21.441 --> 00:19:32.691
Oh you, did because, yeah, so people, people's running form causes, uh, a lot of joint dysfunction, I believe that so I had to learn how to rerun in order to have longevity, because I knew I wanted to use the hip.

00:19:32.691 --> 00:19:37.317
And so I went to a running guy and I said you know, you watch my gape.

00:19:37.317 --> 00:19:40.771
And and so we, uh, we had to relearn to run you?

00:19:40.912 --> 00:19:44.105
um, you'd be really interested in the stem cell stuff that I'm doing.

00:19:44.105 --> 00:19:45.146
Have you done any of that stuff yet?

00:19:45.146 --> 00:19:53.319
No oh, man, I think, because I mean you don't look 62 to me, you look late 40s yeah what are you doing like?

00:19:53.319 --> 00:19:53.539
What's?

00:19:53.539 --> 00:19:54.825
What's your anti-aging secret?

00:19:55.266 --> 00:20:00.780
well, I you know I don't drink, I'm I'm healthy, I I have a sleep regimen, I have a schedule do you monitor your sleep?

00:20:00.780 --> 00:20:02.685
I don't monitor it, I'm not.

00:20:02.685 --> 00:20:16.428
I'm not a gadget guy, I'm pretty lazy and so, um, I just have a particular routine and my uh, my dad's 90, my mom's 89, and we just have great genes and take care of ourselves and love to exercise.

00:20:18.152 --> 00:20:18.993
Let's talk about this book.

00:20:18.993 --> 00:20:26.630
Okay, I remember we were again about a month ago I feel like a host of a talk show 401kid.

00:20:26.630 --> 00:20:34.980
We were sitting in Georgia at Jesse Itzler's cabin, yeah, and you said I have this book.

00:20:34.980 --> 00:20:38.767
It's called 401kid and for some reason this sticks in my head.

00:20:38.767 --> 00:20:38.866
Head.

00:20:38.866 --> 00:20:41.472
He goes what a great name for a book, what a great name.

00:20:41.472 --> 00:20:43.577
So what is 401 kid?

00:20:44.580 --> 00:21:05.155
so, um, 401 kid is is the result of so many conversations that I've had with people over the years, I mean from you would think, um, that people that came to my class the Lou Grubb who was actually one of the founders would have a level of financial acumen in their world.

00:21:05.155 --> 00:21:08.836
And people always said, categorically, I wish I would have learned this earlier.

00:21:08.836 --> 00:21:11.371
And I just got tired of hearing it.

00:21:11.371 --> 00:21:34.092
And then I was somewhere in a very wealthy area and I had a very disturbing thing happen, and that was I was with some dads and their kids had just graduated college and they found out I was an educator and they started peppering me with questions like what should we be teaching our kids?

00:21:34.092 --> 00:21:41.845
And I kind of was like, and they were in the finance business and I thought, Hmm, this is this sort of interesting.

00:21:41.845 --> 00:21:48.214
And there's a, there's a great book written by John support called the wealthy gardener, and it's the one I recommend to everybody to to read.

00:21:48.214 --> 00:21:53.096
It's it's similar to my book, only, you know, very deep, very well written.

00:21:53.096 --> 00:21:57.297
He draws the analogy between a garden and and and investing.

00:21:58.164 --> 00:22:00.250
And so I just got, I got tired, and what the dad said.

00:22:00.250 --> 00:22:02.645
I said what are you teaching your kid about money and he goes.

00:22:02.645 --> 00:22:03.186
I'm not.

00:22:03.186 --> 00:22:06.874
And I thought, Hmm, why is that he goes?

00:22:06.874 --> 00:22:10.326
I don't want him to be a spoiled, entitled kid.

00:22:10.326 --> 00:22:12.849
And so I thought about that.

00:22:12.849 --> 00:22:14.672
And so here we are and I'll give you the landscape.

00:22:14.731 --> 00:22:28.528
So in the Bay area, his dad lived in a little community called Atherton and Atherton is one of the most wealthiest zip codes in California not in the country and I and I just said to him, I said you know that's a mistake.

00:22:28.528 --> 00:22:34.628
You know you really got to teach, you got to talk to your kid, you got to be vulnerable with him, you got to tell him about your journey.

00:22:34.628 --> 00:22:36.791
You're not trying to give him money.

00:22:36.791 --> 00:22:47.102
You need to educate him about what is your successes, your failures, how you did it, what was good, what didn't work, and really the overall landscape.

00:22:47.102 --> 00:22:54.835
And so the other thing that was also impactful about that is I watched those families and the trajectory of their kids.

00:22:55.715 --> 00:22:59.786
They were all Ivy league, investment banking, New York.

00:22:59.786 --> 00:23:03.215
But then what about the landscaper?

00:23:03.215 --> 00:23:07.006
What about the dock worker, what about the restaurant guy?

00:23:07.006 --> 00:23:12.846
And what kids typically do is they will follow in the footsteps of what they see, Mm-hmm.

00:23:12.846 --> 00:23:17.037
And so, anyway, I just I walked away and I said I got to do something.

00:23:17.037 --> 00:23:21.248
And so, anyway, I just I walked away and I said I gotta do something.

00:23:21.248 --> 00:23:43.472
I gotta write a book whereby parents need to educate their kids, and then the one thing that we're just not doing is we have a window of opportunity from zero to ten, when our kids like us, they think we're smart and their minds are very pliable and they're ready to absorb, and we're not doing any of it in this zone, and that's a massive, massive mistake.

00:23:43.472 --> 00:23:58.309
So my book is really a wake-up call around how to build kids' self-esteem, how to build their character, Because if we don't do it, because it's in the forward, like if we don't do it.

00:23:58.329 --> 00:23:58.852
Guess who's going to do it?

00:23:58.852 --> 00:23:59.173
Going to do it?

00:23:59.192 --> 00:24:22.332
the internet, oh god yeah, and the internet is going to tell our kids and there's an epidemic with suicides and kids that can't get out of their rooms and all the things that are affecting our kids because the internet is so persuasive in the message of my life is amazing your sucks and then kids adopt that and then they get on this rat treadmill of I got to get something on the outside to make myself feel better.

00:24:22.571 --> 00:24:24.217
Yeah, it's doom scrolling.

00:24:24.217 --> 00:24:26.089
Yeah, they just start looking in.

00:24:26.089 --> 00:24:26.191
Yeah.

00:24:27.286 --> 00:24:28.509
And parents got to get in front of that.

00:24:28.509 --> 00:24:31.329
Yeah, they, they 100% got to get in front of it.

00:24:31.671 --> 00:24:32.412
That's a problem too.

00:24:32.412 --> 00:24:38.236
Yeah, you know what it's so damn interesting, cause I I know nothing about that stuff.

00:24:38.236 --> 00:24:42.965
You know, no one ever taught me how to do that stuff, and in school they kind of stopped teaching all that.

00:24:42.965 --> 00:24:47.286
I remember when I was in school, you know, I remember taking a class I don't remember what class it was but they taught us how to write a check.

00:24:47.286 --> 00:24:50.108
They told us how to fill out the W2s and W4s.

00:24:50.108 --> 00:24:52.310
I don't think that happens anymore, right?

00:24:52.310 --> 00:24:54.093
So how are they going to teach you how to manage wealth?

00:24:54.093 --> 00:24:57.195
So this is on Amazon, this is everywhere, bookstores, everywhere.

00:24:57.195 --> 00:24:59.979
It's on audio, is it you reading it, Uh-huh.

00:25:00.439 --> 00:25:00.640
Yep.

00:25:01.681 --> 00:25:02.361
Can I keep this one?

00:25:02.361 --> 00:25:02.902
I want to read it.

00:25:02.902 --> 00:25:09.151
Yep, the other day I thought you posted something so funny and it was well.

00:25:09.151 --> 00:25:11.217
I experienced this myself a couple weeks ago.

00:25:11.217 --> 00:25:24.800
I saw David Goggins running on the canal David Goggins, navy SEAL, motivational speaker, tough, tough guy and he was running towards me and I was like that looks like David Goggins, I'm going to say something.

00:25:24.800 --> 00:25:25.902
No, I'm not going to say something.

00:25:25.902 --> 00:25:31.473
He runs by and I thought that would've been so cool to say hey, david, I'm going to run with you but I can't run.

00:25:31.473 --> 00:25:33.527
So I really probably would have run like three or four steps.

00:25:33.527 --> 00:25:37.857
But then you saw David Goggins Walk me through that experience.

00:25:38.605 --> 00:25:44.164
So I'd actually seen him the day before and so I looked up and he was running on the other side of the canal.

00:25:44.164 --> 00:25:52.510
I'd heard that he was in town and I'd heard that he'd been running on the canal and I knew it was just a matter of time because I run so much that there was a likelihood I would run into him.

00:25:52.510 --> 00:26:01.396
And so I saw him and it looked like he wasn't running that fast and he was kind of sauntering and I I was 11 miles into a 12 mile run.

00:26:01.396 --> 00:26:06.220
So I I was pretty cooked um when I I had nothing left in the tank.

00:26:06.220 --> 00:26:10.643
But the minute I saw him I'm like, okay, it's game on, I'm gonna catch this guy.

00:26:10.643 --> 00:26:19.525
And boy, I emptied the tank and I could not, I could not catch him and I was flying, I mean, I was rolling, he's fast.

00:26:20.386 --> 00:26:29.153
But the thing that was really really impactful to me was I saw him the next day and this day he was running at me.

00:26:29.153 --> 00:26:31.593
So I'm like, okay, I'm going to flip around.

00:26:31.593 --> 00:26:36.529
And so I flipped around and we ran together a little bit and I said, how far are you going?

00:26:36.529 --> 00:26:37.554
He goes 21.

00:26:37.554 --> 00:26:40.788
I go, do you mind if I run with you and he goes.

00:26:40.788 --> 00:26:41.992
No, I run alone.

00:26:41.992 --> 00:26:43.632
And that's the only thing he said to me.

00:26:43.632 --> 00:26:44.827
It wasn't.

00:26:44.827 --> 00:26:46.907
I'm sorry, it wasn't any.

00:26:46.907 --> 00:26:54.257
He didn't explain anything to me and the really fascinating thing is he is so hyper-focused.

00:26:54.257 --> 00:26:55.851
He had no water.

00:26:55.851 --> 00:26:57.617
He had no water.

00:26:57.617 --> 00:26:58.085
He had no headphones.

00:26:58.085 --> 00:27:00.192
He had no sunglasses.

00:27:00.192 --> 00:27:02.732
He had no camel pack.

00:27:02.732 --> 00:27:04.769
He had no nutrition.

00:27:04.769 --> 00:27:08.472
He had no water, it was just black shorts and shoes.

00:27:08.472 --> 00:27:13.155
And he said no, I run alone.

00:27:13.155 --> 00:27:16.450
He had nobody with him, it was just him.

00:27:17.065 --> 00:27:19.574
So then do you just slow down and let him go?

00:27:19.713 --> 00:27:25.613
Yeah, yeah I didn't want to get killed you know, when you run, what do you?

00:27:25.653 --> 00:27:26.579
you got headphones on.

00:27:26.579 --> 00:27:27.184
What do you listen to?

00:27:27.890 --> 00:27:28.112
Shit.

00:27:28.112 --> 00:27:30.907
I listen to audio books, so I read.

00:27:30.907 --> 00:27:35.372
I probably during my Leadville train I've probably read 40 audio books.

00:27:35.413 --> 00:27:36.295
Does it just take you away?

00:27:42.025 --> 00:27:42.527
You're just in the zone.

00:27:42.527 --> 00:27:42.827
Yeah, I mean it.

00:27:42.827 --> 00:27:43.269
You learn a lot I.

00:27:43.269 --> 00:27:45.097
I love reading all kinds of all kinds of different books and it's on my journal.

00:27:45.097 --> 00:27:48.189
Sometimes I listen to music but it's mostly you take a call sometimes, well, very cool.

00:27:48.529 --> 00:28:03.749
So I went to jet gpt um because, like I said, you know, it was like like, when I have other people in here, like I had sam fox in here, you know, I had, uh, this Rafael Gonzalez's scientist guy about stem cells, like it's stuff that I know, so I can just like I can talk to Sam Fox about restaurants.

00:28:03.749 --> 00:28:05.113
He lives on my street we could talk about.

00:28:05.113 --> 00:28:10.200
You know, we grew up in the same town, so it's like with you, it's just so out of my world.

00:28:10.200 --> 00:28:14.550
I should have read this book first and then come in there and said and ask you, you questions.

00:28:14.570 --> 00:28:24.335
So I was at Chachapiti and I'm fascinated with Chachapiti and I was like I'm interviewing this guy, walter Clark, do a deep dive and can you come up with some good questions for me to ask?

00:28:24.335 --> 00:28:30.992
And, holy smokes, man, can you share the story behind your Ironman triathlon?

00:28:30.992 --> 00:28:31.714
You already did.

00:28:31.714 --> 00:28:34.553
What lessons did you learn from the challenges?

00:28:34.553 --> 00:28:36.087
Yes, okay, you already did that one.

00:28:36.087 --> 00:28:41.506
What are common mistakes families make when dealing with sudden wealth and how can they be avoided?

00:28:41.506 --> 00:28:45.192
Boom, that's a good one you know what?

00:28:45.251 --> 00:28:45.834
what happens?

00:28:45.834 --> 00:28:52.450
There's a there's a thing with money, um, when you get a windfall and people look at it two ways.

00:28:52.450 --> 00:29:04.674
Athletes do this all the time, but it's what money can support versus what money can buy, and so there's a very, very different, distinct method around that.

00:29:04.674 --> 00:29:09.507
So money generally can support about a 4% distribution rate.

00:29:09.507 --> 00:29:16.971
So if you get $10 million, that supports $400,000 a year in annual spending.

00:29:16.971 --> 00:29:25.455
But $10 million can buy a big house, cars, a boat, a lot of stuff, but what you do is you diminish the engine.

00:29:25.455 --> 00:29:54.454
Money is the engine that generates return, which feeds your lifestyle, and so what happens for people in the sudden wealth spectrum, kind of twofold One is a lot of people want to sell you stuff and a lot of people get caught in complexity and don't keep things simple and they get involved in a lot of things and they um, they don't understand, and so therefore, they make a lot of mistakes and they lose a lot of money.

00:29:54.496 --> 00:29:55.781
There's lots of examples.

00:29:55.781 --> 00:29:59.618
I wrote another book before this, one called the big risk.

00:29:59.618 --> 00:29:59.980
I thought it.

00:29:59.980 --> 00:30:00.702
It was a big mistake.

00:30:00.702 --> 00:30:20.747
Yeah, I know the big risk, and and we watched a lot of people vanish money and getting into things cause, cause they thought they were smart, they made money in one business and they thought it translated into another and um, and so they took unnecessary risk and jeopardize their, their lifestyle.

00:30:20.747 --> 00:30:29.030
They people overspend and therefore that that that bucket of money can't, can't support so is there basic advice?

00:30:29.050 --> 00:30:31.317
you think people should save a certain percentage of their.

00:30:32.145 --> 00:30:33.428
Well, there's two sides.

00:30:33.428 --> 00:30:40.209
There's accumulation size, where you're saving and you're investing for a future date.

00:30:40.209 --> 00:30:43.077
The audience that I taught to had the windfall.

00:30:43.077 --> 00:30:59.893
So it wasn't really about savings anymore, it was about I got this amount of money, how can I best invest it to where it can be efficient and then it can serve me and my family, not only for my generation, but future generations to come?

00:31:00.484 --> 00:31:06.232
Was there ever a moment when you first started where you had a client, a new client, and let's say they were worth a billion dollars and they're coming to you?

00:31:06.232 --> 00:31:13.473
I don't know how wealthy your clients are, but if the first time someone came to you with their money said help me, did you freak out?

00:31:13.473 --> 00:31:14.135
Did you stress?

00:31:14.135 --> 00:31:15.450
Did you, were you worried?

00:31:17.265 --> 00:31:17.989
Did you freak out?

00:31:17.989 --> 00:31:18.451
Did you stress?

00:31:18.451 --> 00:31:19.013
Did you were you worried?

00:31:19.013 --> 00:31:19.556
Did you make mistakes?

00:31:19.556 --> 00:31:29.251
No, because you do it in such a way that you craft a plan based on what they're trying to accomplish, so you're really matching what it is that they're wanting you to do.

00:31:29.251 --> 00:31:40.971
So you just have to understand volatility and how markets go up and down, and it's really for a lot of, what financial advisors do is regulate the emotions of their customers.

00:31:40.971 --> 00:31:49.458
We see it right now with the tariffs and the world and the panic that we saw not less than three weeks ago.

00:31:49.458 --> 00:31:56.480
You know, the world was falling apart and people were running for cover and now, all of a sudden, the sun's out, like we just made a deal with China.

00:31:56.501 --> 00:31:57.484
I just I just made a deal with China.

00:31:57.484 --> 00:31:59.251
I just told my wife that today.

00:31:59.251 --> 00:32:00.809
I said we should have bought stocks this morning.

00:32:00.809 --> 00:32:02.515
Right, Was today the day to do it?

00:32:02.515 --> 00:32:04.150
No, it was two weeks ago.

00:32:04.150 --> 00:32:04.531
Two weeks ago.

00:32:04.531 --> 00:32:07.446
I said that two weeks ago too, when everybody was running for cover.

00:32:07.467 --> 00:32:10.210
I mean, what happens for people is.

00:32:10.210 --> 00:32:14.555
We're a big advocate in the class and in my practice.

00:32:14.555 --> 00:32:15.655
You got to keep things simple.

00:32:15.655 --> 00:32:32.999
Complexity breeds loss and the families that do the best over a long period of time have simplicity inside their investment thesis and they don't get involved in the newest and the latest.

00:32:33.039 --> 00:32:33.441
Crypto.

00:32:33.441 --> 00:32:34.224
They don't do crypto.

00:32:34.948 --> 00:32:36.212
You know whether they do it or not.

00:32:36.212 --> 00:32:43.164
They may do it in a small percentage, but they don't chase the fads that everybody else is running around with.

00:32:43.164 --> 00:32:44.991
They're very basic, they're very simple.

00:32:44.991 --> 00:32:46.356
You know they're on.

00:32:46.356 --> 00:32:50.847
They're not on the five-year plan or the two-year plan, they're on the 50-year plan or the hundred-year plan.

00:32:51.048 --> 00:32:51.990
What is your take on crypto?

00:32:51.990 --> 00:32:52.371
By the way?

00:32:52.911 --> 00:32:55.535
You know, I just I don't have a lot of opinion about it.

00:32:55.535 --> 00:32:58.759
It's an equity asset that has.

00:32:58.759 --> 00:33:07.406
I look at every asset in terms of two things.

00:33:07.406 --> 00:33:10.734
One is it's expected return, like how much money it will make going forward, and then how much volatility it has.

00:33:10.734 --> 00:33:17.278
And so, based on those two things, how much of it are you going to mix into your equation?

00:33:17.278 --> 00:33:18.701
That's what people?

00:33:18.701 --> 00:33:23.894
It's three things it's expected return, variation and correlation.

00:33:23.894 --> 00:33:28.252
Those are the three things that you look at when you're mixing in and you're building a portfolio.

00:33:29.095 --> 00:33:30.325
And so crypto is just a thing.

00:33:30.325 --> 00:33:34.112
It's not the thing, it's not the catch-all.

00:33:34.112 --> 00:33:36.497
It's like do you want 5% crypto?

00:33:36.497 --> 00:33:37.298
Do you want 2%?

00:33:37.298 --> 00:33:38.140
Do you want 10%?

00:33:38.140 --> 00:33:42.856
And then what does that do in terms of the variability to your portfolio?

00:33:42.856 --> 00:33:47.396
So you're building something that can weather storms.

00:33:48.406 --> 00:34:05.436
That's what is important, because most people in portfolio management, if you violate your fear threshold like we lost 22% in the stock market in literally three weeks you know trump gets elected, everybody's excited, the market goes up.

00:34:05.436 --> 00:34:08.246
Then he comes into office, he starts rattling the saber.

00:34:08.246 --> 00:34:09.626
Oh shit, oh shit.

00:34:09.626 --> 00:34:18.880
You know we're going down, we're, and rational people become very irrational in fear.

00:34:18.880 --> 00:34:27.936
And so when you're crafting portfolios, you've got to do it in such a way to where people stay the course when they're in a lot of fear.

00:34:27.936 --> 00:34:33.090
That's great advice, and if you don't do that, you're going to make a decision.

00:34:33.210 --> 00:34:49.108
So, like all the people and there's a lot of them because tariffs were really scary, right Right, like the world's falling apart, and a lot of them because tariffs were really scary, right right, like the world's falling apart and a lot of people said I'm just gonna go to the sidelines, I'm just gonna wait this out, right, right.

00:34:50.333 --> 00:34:51.114
Well, you gotta be.

00:34:51.114 --> 00:34:52.317
You gotta make two decisions.

00:34:52.317 --> 00:34:56.494
You make one decision when to sell, and then you gotta make another decision to rebuy.

00:34:56.494 --> 00:35:03.704
Now, today, they, they read the paper and like, oh no, Do I get back in or I not?

00:35:03.704 --> 00:35:10.697
I guarantee you they're getting back in higher than what they sold for, because people sell on the way down.

00:35:10.697 --> 00:35:14.371
They don't sell when everything's wonderful, and so it's really.

00:35:14.371 --> 00:35:16.079
It's a psychological game.

00:35:16.079 --> 00:35:33.335
So if you just do what we teach in the class, if you just do what we teach in the class, if you just do basic things, basic things, and get market-like returns and stay the course, you'll do better than 98 percent of all the people that are out there I agree with you I think that's what we do.

00:35:33.356 --> 00:35:34.338
That way we do good.

00:35:34.338 --> 00:35:38.135
Uh, you know, you brought up your daughter, 25 year old-old daughter.

00:35:38.135 --> 00:35:39.699
Did you teach her all this?

00:35:39.858 --> 00:35:42.244
So she's a financial advisor, oh, wow, okay.

00:35:42.244 --> 00:35:43.896
And so she's a rock star.

00:35:44.530 --> 00:35:46.318
Does she work with you or just her own thing?

00:35:46.751 --> 00:35:55.735
No, she works with a group out of the Bay Area at Northwestern Mutual an amazing group, amazing firm, an amazing team and you know she gets it.

00:35:56.331 --> 00:36:01.413
Was she always inquisitive growing up, asking you questions about finances and how to do this.

00:36:01.413 --> 00:36:01.733
Dad, how do you?

00:36:01.753 --> 00:36:01.994
do that Well.

00:36:01.994 --> 00:36:07.956
You know both my kids my older one was an athlete, my younger one was more analytical.

00:36:07.956 --> 00:36:26.445
But what's happening is, because they've been in the conversation for so long, they both really understand budget and spending, and one of the things that is paramount for families and kids is they need to understand the twofold aspects of revenue how much money you make versus expenses.

00:36:26.445 --> 00:36:45.056
And where a lot of people make a ton of mistakes is in lifestyle inflation, because you start making more money and we have conversations all the time about bonuses and as wage increases and you know, can you keep your lifestyle in check and not buy the bigger apartment, the bigger car?

00:36:45.056 --> 00:36:46.018
Cause there's cause.

00:36:46.018 --> 00:36:47.722
That's what 20 year olds do.

00:36:47.722 --> 00:36:49.074
They want to impress everybody.

00:36:49.838 --> 00:36:56.536
You know I'm, I'm driving a bigger car, I live in a bigger apartment, I have nicer stuff, and you know it's the.

00:36:56.536 --> 00:36:58.619
It's the challenge of what we call the fake rich.

00:36:58.619 --> 00:37:24.240
You know people that want to show an air of and so to be able to have an image of discipline where you're not flaunting your lifestyle, but what you have is tremendous amount of free cash flow where you're putting stuff away in your retirement accounts and your Roth and your your building for the future, which is not sexy, you know.

00:37:24.240 --> 00:37:33.730
It's sexy to show people that I'm oh, look at this vacation, or look at this car, or look at this watch, or look at this fanfare, look at this party that I was in and that.

00:37:33.730 --> 00:37:34.731
And that's not freedom.

00:37:35.532 --> 00:37:39.699
But what about living and having life experiences?

00:37:39.699 --> 00:37:46.940
I have a friend of mine that's pretty wealthy and he does incredible things, and he told me several years ago you know, life is about experiences.

00:37:46.940 --> 00:37:48.998
You can't take this money with you when you go.

00:37:48.998 --> 00:37:58.951
And my father passed away at the age of 66, and he was always saving, always saving, and he lived life, but he didn't live life For me.

00:37:58.951 --> 00:38:08.422
Right now I look at it like I'm like let's get those four seats of the suns, let's fly first class, let's get the private jet here, let's buy the fancy car, and, of course, now I think we're broke.

00:38:08.422 --> 00:38:10.652
So, uh, you know.

00:38:10.652 --> 00:38:13.496
But but we have these great life experiences, right?

00:38:13.496 --> 00:38:13.916
Is that?

00:38:13.916 --> 00:38:15.498
That doesn't sit well with you.

00:38:17.260 --> 00:38:17.880
Well, I mean it's.

00:38:17.880 --> 00:38:19.402
You have two.

00:38:19.402 --> 00:38:29.677
You have two aspects to the wealth management game accumulation and distribution, and health and longevity and enjoyment.

00:38:29.677 --> 00:38:31.585
Some, some decisions you make are efficient decisions, Some are enjoyment decisions.

00:38:31.605 --> 00:38:35.856
There has to be a balance, but you can't be a slave to your lifestyle.

00:38:35.856 --> 00:38:41.318
I've been involved with some celebrities and some Hollywood figures and and I've looked at their books.

00:38:41.318 --> 00:38:42.159
And they have no money.

00:38:42.159 --> 00:38:47.072
They have no money and so they're a slave to their business.

00:38:47.072 --> 00:38:58.402
And one of the things when you're a high income earner, what that means is you have more variability to your income than the 50 to a hundred thousand dollar guy.

00:38:58.402 --> 00:39:00.067
You know he has a bad year, he makes 60,.

00:39:00.067 --> 00:39:01.097
You know the million you know he has a bad year, he makes 60.

00:39:01.097 --> 00:39:04.436
You know the million dollar guy he has a bad year, he makes zero.

00:39:05.750 --> 00:39:10.081
So if you got a really, really high lifestyle, you're in trouble.

00:39:10.081 --> 00:39:23.521
So it's really about financial freedom, and so I believe that if you're reaching for lifestyle but you're impoverished because you're overspending, you're not making lifestyle decisions because you're reaching for lifestyle but you're impoverished because you're overspending.

00:39:23.521 --> 00:39:24.905
You're not making lifestyle decisions because you're suffering.

00:39:24.905 --> 00:39:29.097
So, like my daughter and I went over her budget, she called me and said dad, I'm overspending.

00:39:29.097 --> 00:39:33.353
And she said I'm going to cut out my latte.

00:39:33.353 --> 00:39:40.496
She went through her budget, kind of line item by line item, and she says I'm really going to sacrifice because I'm not going to have these things.

00:39:40.496 --> 00:39:44.784
And we thought about it for a minute and we said are you sacrificing or are you not?00:39:44.784 --> 00:39:48.440


So when you're spending money that you know you don't have, is that a sacrifice?00:39:48.440 --> 00:39:54.293


That's almost like a punishment, because you know in the back of your mind you can't afford that stuff.00:39:54.293 --> 00:40:00.744


So you're putting on a credit card and then the credit card bill comes and you feel guilty, you feel remorse and you're like, oh my God, how am I going to make that payment?00:40:00.744 --> 00:40:05.815


I have no money, but yet I'm showing the world that I'm a baller.00:40:07.277 --> 00:40:10.123


And so months go by and she calls me back.00:40:10.123 --> 00:40:11.570


She goes, dad, the credit cards are gone.00:40:11.570 --> 00:40:12.570


I go.00:40:12.570 --> 00:40:13.130


How do you feel?00:40:13.130 --> 00:40:13.692


She goes?00:40:13.692 --> 00:40:14.731


I feel like a million bucks.00:40:14.731 --> 00:40:15.472


I go.00:40:15.472 --> 00:40:17.132


Do you feel like you made sacrifice?00:40:17.132 --> 00:40:18.193


She says 100%.00:40:18.193 --> 00:40:18.494


Not.00:40:18.494 --> 00:40:20.454


I got right with myself.00:40:20.454 --> 00:40:36.143


I had to talk to myself in the mirror and that's really what we need to teach our kids is that delayed gratification, that fiscal discipline, that want versus that need and what you can afford and what you can't afford.00:40:36.143 --> 00:40:36.983


So she cut out lattes.00:40:37.003 --> 00:40:37.884


She cut out lattes.00:40:38.503 --> 00:40:39.405


She cut out a lot of thingses.00:40:39.405 --> 00:40:40.405


She cut out a lot of things.00:40:40.405 --> 00:40:42.065


Yeah, she cut out a lot of things.00:40:42.065 --> 00:40:43.327


She cut it to the bone.00:40:43.327 --> 00:40:45.407


She said I don't want to live like this anymore.00:40:45.827 --> 00:40:46.407


What about you?00:40:46.407 --> 00:40:52.047


Is there anything you splurged on that you regret, or splurged on that you?00:40:52.068 --> 00:40:52.289


thought was.00:40:52.289 --> 00:41:00.164


So I really break my life into two categories the spender Walter and then the fiscally disciplined Walter.00:41:00.164 --> 00:41:08.315


So in the book the big risk you know I was uh, I never learned it, even though I was a financial educator.00:41:08.315 --> 00:41:09.237


It's like the cobblers kids have no shoes.00:41:09.277 --> 00:41:09.818


You know, I didn't.00:41:09.818 --> 00:41:13.373


I never drank the Kool-Aid and I always believe that more was coming.00:41:13.373 --> 00:41:19.923


And so you know, when I made money and spent money, I spent equal amount of money that I that I made.00:41:19.923 --> 00:41:36.657


So it was a very, very painful lesson going through that, going through that scenario, and it really shapes you in a in a different way, and so you, you have a very, very different view, because the 089 downturn was tough, very tough, tough on me and tough on a lot of people.00:41:36.657 --> 00:41:40.963


A of people lost, lost a lot but since then?00:41:41.184 --> 00:41:41.911


so now you've you.00:41:41.911 --> 00:41:45.706


You've got the two walters, you know who they are yeah, definitely you go.00:41:45.726 --> 00:41:50.519


you go through a painful and I think I needed to go through all that because hence here's the book.00:41:50.519 --> 00:41:57.699


You know the big risk is there and 401kid and it's like you got to get in front of this because I I grew up with mr spender.00:41:57.699 --> 00:42:03.554


You know my dad had to live a life with with other people.00:42:03.554 --> 00:42:11.014


We were ski racers so we had there was little money, mid money and big money, and we were little money.00:42:11.014 --> 00:42:28.380


That wanted to be big money and in the boat racing world, if you're ever a racer, a car racer, both it is not an inexpensive sport, and so he tried to compete in a landscape that he just couldn't compete in, and so I just learned that and what you learn.00:42:28.420 --> 00:42:32.463


He never sat down at the table and said, son, I'm spending every nickel I made and then some.00:42:32.463 --> 00:42:37.146


He didn't say that, I just experienced it in his behaviors.00:42:37.146 --> 00:42:40.494


So kids are going to watch what you do.00:42:40.494 --> 00:43:02.105


They watch what you do, and, and even for families that are that are financially challenged, what I say to them is you can hire coaches and steer your kids towards the internet so they can pick up mentors like Sarah Blakely, I mean Jesse's wife.00:43:02.105 --> 00:43:03.315


Love Jesse.00:43:03.315 --> 00:43:18.621


I've never really met Sarah, and so in my book Sarah's dad is leaving leaving their household and gives her a series of tapes from Wayne Dyer and says and they're the limitless Wayne Dyer's tapes that you can do anything.00:43:18.621 --> 00:43:24.668


And she grabbed that at 15 years old and realized it was up to her to create her own destiny.00:43:24.688 --> 00:43:25.210


I didn't know that story.00:43:25.630 --> 00:43:27.135


Yeah, they didn't have much.00:43:27.336 --> 00:43:27.458


Right.00:43:27.789 --> 00:43:48.240


And so 401kid is more for the lower income than it is for the privileged families, because there's so many resources now that are next to free, where you can teach your kid entrepreneurial characteristics and your kids can have a different life than you.00:43:48.240 --> 00:43:51.478


You want your kid to be a landscaper, a mechanic.00:43:51.478 --> 00:43:58.483


That's fine, but maybe instead of being a wage earner in the landscape company, he can own the landscape company.00:43:59.030 --> 00:44:03.541


Or maybe he can develop an app or a technology or a new electric motor.00:44:03.541 --> 00:44:08.452


So maybe there's many, many things that they can do, I believe my wife.00:44:08.472 --> 00:44:12.581


did you go on a date with Wayne Dwyer's son?00:44:12.581 --> 00:44:15.657


Were you on a date with somebody like that, some motivational?00:44:15.657 --> 00:44:18.500


I was just going off the connection with the Walter connection.00:44:18.500 --> 00:44:24.976


I felt like you told me, or was it Ken Blanchardard, there was somebody you went on a date with that was a motivational speak, ken blanchard, yeah, his son.00:44:24.976 --> 00:44:27.226


Um, I didn't know that about sarah blakely.00:44:27.367 --> 00:44:38.159


And a real quick story when I started in radio, um, I was on a sports radio station, uh, doing I was an intern for free, and a guy there gave me these cassettes that were tonybins cassettes.00:44:38.159 --> 00:44:50.197


There were cassettes, go back to you know, and I listened to those things every freaking day over and over and over again and I always felt like you could pull something out of there, you know, and just pull something that makes you a better person or better at what you do.00:44:50.197 --> 00:44:51.340


You're ahead of the game.00:44:51.340 --> 00:44:52.793


I didn't know that about Sarah Blakely.00:44:52.793 --> 00:45:02.313


That's, that's awesome, that's all and that's pretty wild, didn't it?00:45:02.313 --> 00:45:03.277


Yeah, no, jesse's in the book three times.00:45:03.277 --> 00:45:04.663


He is uh-huh before you met you, like you didn't?00:45:04.663 --> 00:45:05.505


That's wild?00:45:05.505 --> 00:45:12.532


Yeah, wow, you like manifested that right, because now you're spending it, yeah, so jesse did a couple things on the kids side.00:45:12.793 --> 00:45:21.313


One is he said um raise gritty, we're raising our kids to be too soft yes, I agree with that and he said praise the effort, not the results.00:45:21.472 --> 00:45:34.597


I think parents are being way too negative the the tennis parent, or the swim parent or the uh, baseball parent that's yelling at their kids through the chain link fence because they're not performing in the way they.00:45:34.597 --> 00:45:35.559


I think that's.00:45:35.559 --> 00:45:37.326


I think that's a cancer.00:45:37.326 --> 00:45:39.599


So I think we need to do a better job of of encouragement.00:45:39.599 --> 00:45:40.730


I think we need to do a better job of of encouragement.00:45:40.730 --> 00:45:43.543


I think we need to do a job better job at mentorship.00:45:43.543 --> 00:45:55.896


I think we need to teach our kids entrepreneurial traits about business and lemonade stands and what's possible for them out in the future instead of, you know, soccer, sports, music.00:45:55.896 --> 00:46:01.804


We really got gotta teach life skills and we hire so many coach.00:46:01.844 --> 00:46:21.905


I mean, all the kids have music teachers, dance coaches shooting coaches why not have like a life coach, uh, for, for the parents and for their kids to, to, to create unity in in the family, to bridge that educational gap?00:46:21.905 --> 00:46:27.255


Because you know there's an interesting story Francis Tiafoe I don't know if you know who that- is.00:46:27.255 --> 00:46:28.117


Yeah, why do I know that name?00:46:29.653 --> 00:46:30.599


Oh, he's the tennis player.00:46:30.599 --> 00:46:31.686


Tennis player, yeah, the tennis player.00:46:31.686 --> 00:46:32.996


That's right, right, right yeah.00:46:33.036 --> 00:46:33.809


Francis is incredible.00:46:33.809 --> 00:46:38.097


My daughter played tennis with Francis oh wow Coming up through the junior ranks.00:46:38.097 --> 00:47:04.036


The guy was a oh wow his tennis career, but instead his dad recognized that his son had talent.00:47:04.036 --> 00:47:05.742


He's like I got to get my son to people that can further this talent.00:47:05.742 --> 00:47:17.434


And it's the same with entrepreneurship I don't care who you are, we have to expose our kids to this dynamic, to show them how to create, how to build, how to be a part of.00:47:17.434 --> 00:47:20.822


Which was fascinating in my class to Sudden Wealth.00:47:20.822 --> 00:47:23.217


I never had a founder show up.00:47:23.217 --> 00:47:30.422


Not one time did the guy that created the company come to my class.00:47:30.422 --> 00:47:38.416


But how many millionaires and multiples of millionaires come because they had equity in the company?00:47:38.416 --> 00:47:42.172


Employee 21 didn't start Google, he just went to work there.00:47:42.172 --> 00:47:48.155


So, teaching our kids how to get equity, how many millionaires are at Walmart, meta, facebook, nvidia, plantier?00:47:48.155 --> 00:47:58.391


We got to teach our kids that equity is the game, not wages, and so the sooner we teach them that, the sooner they learn and they start to look at the world differently.00:47:58.670 --> 00:48:03.780


The problem with the Tiafoe story is, I think every parent thinks that their kid is francis.00:48:03.780 --> 00:48:09.300


So they get him a coach, they get him a shooting coach, you get him a batting coach, a hitting coach, a pitching coach right.00:48:09.300 --> 00:48:13.539


And then I call it the american idol syndrome and I used to feel like that about my.00:48:13.539 --> 00:48:15.050


I thought am I a parent like that?00:48:15.050 --> 00:48:18.018


Because I thought my son was a pretty good basketball player and I'm right.00:48:18.018 --> 00:48:19.802


Right because he's got a scholarship to play basketball.00:48:19.802 --> 00:48:20.141


I was right.00:48:20.141 --> 00:48:26.818


But I used to think like when they weren't playing my kid, I'd be like why aren't they putting him in Like he's great?00:48:26.818 --> 00:48:30.000


And then I remember American Idol, season one of American Idol.00:48:30.389 --> 00:48:33.320


One of the reasons American Idol took off was because of all the horrible singers.00:48:33.320 --> 00:48:36.210


Do you remember the horrible singers and all those horrible singers?00:48:36.210 --> 00:48:39.793


They'd interview their parents and the parents would go my son is just the best, he's the greatest.00:48:39.793 --> 00:48:41.434


And I thought is that me?00:48:41.434 --> 00:48:45.096


Do I think my son is a real good basketball player?00:48:45.096 --> 00:48:46.235


But in reality he's not.00:48:46.235 --> 00:48:47.376


Am I an American Idol parent?00:48:47.376 --> 00:48:52.739


Now I look back and I was right, because he's currently playing with a basketball scholarship in Hawaii.00:48:52.739 --> 00:48:55.001


So I think there's a lot of that.00:48:55.001 --> 00:48:58.623


Like Francis Tiafoe, his dad saw something special, but he knew it.00:48:58.623 --> 00:49:02.224


He wasn't an American Idol parent Somewhere along the line.00:49:02.224 --> 00:49:05.126


Someone's got to be realistic.00:49:05.126 --> 00:49:07.847


We need a book on being a realistic parent.00:49:07.847 --> 00:49:09.128


Does your kid have talent?00:49:09.128 --> 00:49:10.007


Does he not have talent?00:49:12.889 --> 00:49:14.400


But you also got to be tougher on them too, because they're so soft.00:49:14.400 --> 00:49:18.936


But if you think about the odds and the percentages, how many kids grow up to actually?00:49:18.936 --> 00:49:22.190


One become a professional player and two make money?00:49:22.510 --> 00:49:23.452


right it's.00:49:23.532 --> 00:49:34.483


The odds are, but, but if you teach entrepreneurial skills oh yeah how many of those kids are going to go on to create businesses or go to work for businesses that change the world?00:49:34.811 --> 00:49:37.878


where does someone get an entrepreneurial coach?00:49:39.340 --> 00:49:40.322


they're all over the internet.00:49:40.523 --> 00:49:41.485


Well, it's the internet.00:49:41.485 --> 00:49:42.675


We try to keep kids on the internet.00:49:42.715 --> 00:49:43.096


They are.00:49:43.096 --> 00:49:43.458


They are.00:49:43.458 --> 00:49:45.577


Jesse Itzler is one.00:49:46.231 --> 00:49:46.813


Can you hire him?00:49:46.853 --> 00:49:47.315


individually?00:49:47.315 --> 00:49:52.422


No, but there's the one guy that runs around on the internet School of Hard Knocks.00:49:52.422 --> 00:49:53.405


I think he's amazing.00:49:53.887 --> 00:50:00.882


He goes around and interviews oh yeah, yeah, yeah, yeah, he was an athlete an ex-handball athlete, yeah, and he played for.00:50:01.161 --> 00:50:01.983


And he has little.00:50:02.130 --> 00:50:03.916


He has little Lewis Howes.00:50:05.355 --> 00:50:07.469


Yeah, he has all kinds of things.00:50:07.469 --> 00:50:16.501


There's all kinds of very affordable, whether it's Gary Vee or Grant Cardone or Russell Brunson.00:50:16.501 --> 00:50:24.414


There's tremendous amount of resources on the internet for free on people that you can learn Wayne Dyer tapes, I mean.00:50:24.414 --> 00:50:25.873


I think that stuff's free now.00:50:25.873 --> 00:50:28.074


You know the Anthony Robbins stuff.00:50:28.074 --> 00:50:33.271


I had it when I moved out here in 85.00:50:33.271 --> 00:50:35.199


I came to a Tom Hopkins seminar.00:50:35.409 --> 00:50:36.795


I was just talking about him to my wife.00:50:36.795 --> 00:50:37.838


I went to his seminars.00:50:38.931 --> 00:50:40.277


Is he still around Because he lives out here.00:50:40.277 --> 00:50:42.815


He is still around.00:50:42.815 --> 00:50:43.456


He is still around.00:50:43.456 --> 00:50:45.326


He is still around, but he blew me away.00:50:45.568 --> 00:50:45.668


Yeah.00:50:45.849 --> 00:50:49.380


He showed me something and it was affordable.00:50:49.860 --> 00:50:50.101


Right.00:50:50.349 --> 00:50:57.864


We have to do a better job at, yeah, sports, music, dance, all great stuff.00:50:57.864 --> 00:51:03.034


We all learn great characteristics, but we have to start teaching business.00:51:03.034 --> 00:51:04.197


We're not teaching business to our kids.00:51:04.197 --> 00:51:13.826


We're not teaching life skills about learning, trying, failing, excelling, building, creating value.00:51:13.826 --> 00:51:16.050


Value comes from compensation.00:51:16.050 --> 00:51:17.775


The more value, the more we're not.00:51:17.775 --> 00:51:24.643


We're not teaching these things to our kids early and we just need to do a better job of it.00:51:24.985 --> 00:51:25.989


You're a hundred percent right.00:51:25.989 --> 00:51:29.911


Let me ask you this, cause uh, you and I are going to this party in a couple of days and I was asking you what to wear.00:51:29.911 --> 00:51:31.414


You said business casual.00:51:31.414 --> 00:51:33.219


But you're like like, where do you get your style?00:51:33.219 --> 00:51:33.661


Cause you got.00:51:33.661 --> 00:51:42.715


Every time I've seen you, you're like style, don't just tell me me.00:51:42.715 --> 00:51:43.157


Do somebody help you?00:51:43.157 --> 00:51:44.019


I I'm, I look on the internet, do you really?00:51:44.019 --> 00:51:46.389


I'm a visual person, so you're like that looks cool, it'll work on me because you dress sharp yeah, thank you.00:51:46.489 --> 00:51:48.193


Yeah, I want to dress like you.00:51:48.193 --> 00:51:55.597


Yeah, we'll dress the same when we go to this party yeah all right, so this, this is out 401kid great book.00:51:56.018 --> 00:52:02.822


Um, I I thought because you know I I do this thing where I try not to research anyone I'm interviewing, like I like to all come up.00:52:02.822 --> 00:52:09.083


But the one thing that popped up when I was asked, I thought you didn't have a book called the Great Mistake, the Big Mistake, it's the Big Risk, the Big Risk.00:52:09.083 --> 00:52:11.516


Well, maybe you do part two of the Big Mistake.00:52:11.516 --> 00:52:15.139


The Big Mistake is me calling it the Big Mistake on this interview and not doing my research.00:52:15.139 --> 00:52:17.012


All right, well, thanks, walter Clark.00:52:17.012 --> 00:52:17.594


Thanks, brother.00:52:17.594 --> 00:52:24.469


Okay, so welcome to our podcast.00:52:24.469 --> 00:52:30.659


This is a little bit different today because this podcast is a spin off of our radio show.