Guided Path 3-4 Funds

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We’ll admit…learning about funds can be a pretty complex conversation, but that’s exactly why we have invited Tim Gottfredson, CFP®, on the show, to break this down into the simplest terms. In this episode, Tim shares his expertise about investing in funds and how you can do so while saving yourself the most amount of money possible. Tim discusses: How to limit broker fees and when you can expect them when investing in funds, what an expense ratio is and how you can find the lowest ones, what an Exchange Traded Fund (ETF) is and whether they are a viable investment for you, why more people are gearing towards ETFs in their portfolios and more.

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[00:00:00] Welcome to The Financial Call. We are financial advisors on a mission to guide you through the financial planning everyone should have, whether you're doing it yourself or working with a financial advisor. These episodes will help you break down complicated financial topics into practical, actionable steps. Our mission is to guide motivated people to become financially successful. Welcome back to The Financial Call. This is season 3 episode four today. So season three's all about investing, which is pretty exciting. We've talked about the basics of investing. We've also talked about stocks and bonds. Today we are talking about funds. So funds are ways that you own stocks and bonds or a way that you can own stocks and bonds. We're super excited. We have Tim on the podcast with us today. He's an advisor here at Capita. And I believe this is your first time on a podcast, Tim. Is that right? It is. Yeah. If you see my face, I have a huge smile right now. a nervous smile. Do we love 

[00:01:00] it? No, we're excited. Is it exciting or nervous, Tim? Little bit of both. More nervous than excited. I asked him before, are you excited? And he goes, yeah, nervous. Mostly nervous, but you'll do great. This is awesome. Tim is the guy that we go to when things get really complicated and no one really understands what's actually happening behind the scenes or inside the calculations of things and financial planning software, like how you actually model something out really, really well. Tim is your man. That's true. 100%. Love the detail. He said he came prepared with stats for us today, so probably the most prepared guest we've had so far. That's true. We're excited. Also, you should see Tim, I didn't know that Tim went through this, so first of all, Tim, how long have you been in the industry? Gosh, what, 14, 15 years. So we hired. Pretty tenured advisors, and then we bring them over and there's a decent amount of training that happens just because Capita's financial planning methodology is a fair amount different. I think we focus more on a broader array of topics, covering more about 

[00:02:00] taxes, estate planning, all these different guided paths. Topics are covered in our conversations with clients, and so there's quite a bit of training to be done and I didn't know the level of copious notes that Tim was taking in our, in our initial meetings, and it was like six months in. I think that you showed me your OneNote. And I was talking about trying to build out a training module for the next generation of advisors, and Tim had silently built it here. Yeah. Already it's all written down by accident . Yeah. Which I love. Okay, so again, if you want to be able to see all these topics in order, that's on the, you click on the guided education button up at the top. And then each season is listed out and as we release these episodes, the seasons or each episode will be added and you'll have a button to click on. So we are on three, four, season three episode four funds, and this is a topic that is Chuck full. Of complexity. This is why Tim is here. Thanks guys. Yeah. 

[00:03:00] Funds can be very complicated. Hopefully, we'll just keep it very simple and basic today, understanding the basics. But basically, funds are ways to own investments. A lot of times we think of them as baskets of assets, baskets of different types of bonds or stocks. It's a way to own a lot of securities without maybe. A ton of money is one reason to own a fund. It used to cost a lot of money to buy and sell stocks and. Stock ownership was limited to a really small population in the US and we're going back decades and decades and decades, like probably my grandparents and their parents. Very few people owned individual or owned stocks at all, and they would have to pay a lot of money because the broker would have to do a lot of work to go to the exchange to then find and place orders the right way on the exchange. And you can see how computers have really made this more accessible for everyone. But then there's this gap. It's funny, we've kind of gone full circle where people used

[00:04:00] to buy a lot of individual stocks, and now we're seeing people go back to buying a lot of individual stocks. But in the middle where it was still expensive to buy and sell stocks. I mean, imagine that you had a hundred dollars, you were putting in every month into an investment, and you wanted to buy 10 stocks and every trade cost you $25. Well, you're $250 in transaction costs for your hundred dollars investment. It just didn't work. It wasn't possible. So then these companies said, Hey, we can raise a lot of money and we can manage a lot of money, and hint, hint, we can charge a fee on a lot of money if we can pool all of this together. So there's some pros and cons to it, right? It's not just about making money. These funds were making investing more accessible to more people. So they said, let's take all these stocks and pool them together in a basket. And then allow an investor to buy a share of the basket that is a fund, and that's what we're talking about all day today. So there are different types of funds and we'll go over that. I think 

[00:05:00] most people want to know the costs. And so I think we start with that and help people understand the downside to funds first. And then we can go over why they exist and anything else you guys think to just. Funds in general and what we're talking about? Well, I think a big purpose and advantage to funds as well, is you might not be able to afford a lot of individual securities. You know, if you wanna buy Amazon or Google, and you only have $50 to start with, I mean, one share is over a hundred dollars, so you can't afford to buy all of it, but you can't afford to buy the fund that owns tons of different stocks. So it's a way to get invested sooner when you have a lower price point to start. When you go to buy stocks, like most people, exposure to the stock market is through their 401k, and you can't typically buy individual stocks in your 401k for most plans. And so what they've done is they have these funds and they've made it available to everybody, and it's very simple and they usually limit you to just a very few select funds. And so when you get out into the world of, hey, 

[00:06:00] outside of the 401k, There is a slew of funds. I mean, there's tons of, it's like thousands and thousands. I feel like when I go to the grocery store and I go on the chip aisle to find some, what are those called? Just the tortilla chips. Tortilla chips. Thank you. Tortilla chips. Promise folks. He's the guy that knows everything at Capita but doesn't know much about chips. Well, no, you go on, there are what? 20,000 different types of tortilla chips. You know, you got your triangles, your scoops, your. Lime and Yeah, the purple ones. Yeah, purple. I mean, it becomes overwhelming to a degree, and when you log in and start to research these funds, if you haven't done it before, it feels like an ocean that you're trying to swim in and you drown very quickly and easily. So, Hopefully, I think talking about fees is one of the things that everyone needs to be conscious of and be aware of, and so this is gonna be really helpful to talk about the fees and maybe we start diving into that. I've heard the stat that there are more funds than there are individual securities on the exchanges, so there are more ways to organize.

[00:07:00] These different pieces of the puzzle. Then there are actual pieces, which makes sense. You know, if you're making different combinations, there's gonna be more. Yeah. So there's even an idea. There's 11 sectors in the industry. Financial, industrial technology. There's 68 industries and there's 157 sub industries that make up the economy, the equity markets. And so think about how many different ways you can combine those together. There's tens of thousands of different ways to sum it all up. So I saw one the other day that it was a fund that invests in self-driving cars. Like it gets that specific too. Cool. Okay, so costs, this is what everybody cares about most. I mean, how much of your money is going to someone else versus working for you? And there are different ways to buy funds, and so we're going to explain some of them. Call it segmentation. So the first one would be what they call loaded versus no transaction. So a loaded fund is typically sold to you by a broker, and there's an

[00:08:00] episode a ways back in our. Podcast that talks about what your financial professional doesn't want you to know or something like that. And I go through with a friend of mine, the different types of licenses. Listen to that for more detail. But that plays into this. If you are a broker, you make money by a load, a cost that the customer is paying up front. And I remember it was so funny, I talked to some brokers about this. I actually had a hard time with this whole concept. Five to 6%. A typical cost is 5.25 or 5.75% on an A share. A is an apple, so a front that's a front end load a, and then there's back end load. And so you could pay a cost on the way out. And then there's a higher ongoing load, which is typically a C share, and B is the back end. So anyway, you have these different letters and there are more than that. But the A is by far, well, A and C are the most common. So I talked to some clients, they

[00:09:00] didn't think that they had any cost because the broker told them, well, you don't pay me anything. The fund company pays me. But if they put a hundred thousand dollars into the investment, There's a 5% load. They start with $95,000. So yeah, they paid that $5,000 to the fund, and the fund immediately pays that $5,000 to the broker. It's like your investments immediately, 5% down. Now you gotta earn 5% just to break even, let alone earn anything. You got it. So there are financial professionals out there that are great, that are brokers that do a good job. Now why would that particular cost structure make sense? If you are going to buy the fund and leave it alone for 30 years? That's the mentality with that type of investment because you're paying 5% up front. That's nothing over the span of. 30 years compared to maybe a 1% annual fee for 30 years. You can see why that may make sense, but that's the concept behind loaded funds. They seem to be going away. It seems that fewer and fewer financial professionals are offering that type of structure. 

[00:10:00] That structure has taken a lot of heat within the industry because of that conflict. I mean, imagine if you're feeling like you need to as an advisor, make some money and you sell out of one fund to another, that's called churning to try. Increase your fees that you would get. So there are no transactions on many, many, many funds. Thousands and thousands of funds that you can buy. So there are some that have a commission to buy and sell that's different from a load. Those terms could be. Interchangeable in a lot of language that you may, in conversations you may have with financial people. But what we are talking about here is oftentimes the brokerage firm may charge a $200 commission to buy a fund because it's exclusive and it's harder to get access to, and they may charge a little commission to buy it. So that's, there are commissionable ones and then there are no commission funds. So literally you could buy a fund with no load and no commission. However, it will probably still have an expense ratio. This is the cost inside the fund to run it. So if there are 

[00:11:00] analysts that are picking the individual investments, the marketing costs of the fund, all of that, that's part of the expense ratio and that just gets shaved off the share price. So you'll never ever see like, oh, my expense ratio costs me $500. You're never ever gonna see anything like that. I was gonna say that most people do not know about the expense ratio. They do not know what they're paying for the fee, because it's never shown, you know, it's just taken from the account, taken from the investment. And there's a wide range of expense ratio costs. And so we'll go through the different types of investments. Which ones tend to have a higher expense ratio? Which ones tend to have a lower expense ratio? Anything else we wanna add to the expense ratio? I was looking up some of the expense ratios. I found a great stat chart on this, but it showed some of the worst violators. Just to give you an idea of the type of expenses you might find in some of these funds that are out. Sector funds. Sector meaning something that invests directly in technology or directly in utilities alone 

[00:12:00] and international. Those were the two biggest. They were the worst violators of high expense ratios out there. International and international and sector investing. Okay. Sector specific. Yeah, sector specific. Yeah. So if you're in a mutual fund, that's an actively managed fund. Here's a team of people who are trying to buy and sell these individual stocks in this sector or internationally. Some of these funds, the worst violators, are up around 2% just for the fund expense. Really high relative to everything else, what we're used to. If you're familiar with the expense rate, on average though, if you look at the averages, it's about 1.2% for a sector or international fund. So we're trying to educate, help you understand. What's high, what's reasonable or to expect? Benchmarking is a big thing in the industry. What should you compare? You always wanna compare apples to apples, and when you get in the world of comparing expenses that can get confusing, something that we can always help with and give you some reference, that expense ratio is hidden. You won't see the cost of advice from your financial advisor. 

[00:13:00] Is going to be on top of that. So if you have a financial advisor and your financial advisor is proposing that you buy a fund that has a 2% expense ratio, your financial advisor is also likely charging a one on one and a half. Advisory fees, so you could be three to three and a half percent all in. And those portfolios we see tread water and really don't make a whole lot of progress over the years. And then, usually the story is a client comes to another financial advisor and says, I really liked this plan. It made a lot of sense. I just haven't seen my portfolio get anywhere. And usually it's this type of drag that we're talking about. Yeah, the advisory fee is a really big deal. And to combine that with the expense ratio of the fund. I met with a client who was shopping around. This is at a previous firm I was at, and they said, my advisor's not charging me any fees or my fees. The fees aren't what they think they are. And when they approached the advisor about it, he didn't disclose it all. And it was very frustrating from the client when we pop up the hood and said, Hey look, here's your investments, and if he's charging you one and a half or 

[00:14:00] 2%, You're paying more than that. So it's important to understand what is my all-in cost, what's my total cost, and to understand what the structure, what's the advisory fee portion, and how much you are actually paying for the fund itself. There are different structures of funds and there are some associations here that affect your cost greatly. So I'm actually gonna skip forward a little bit. And so there's index versus active. So this is the philosophy. I think this goes really well with cost because Tim, the numbers you gave, that's mostly actively managed funds. So a fund that is actively managed is. The investment management team inside the fund is trying to accomplish a specific goal that either is to reduce risk, produce a certain quality of investment in the portfolio, or outpace a benchmark return or something like that, an index or passively managed. So there's active and passive, and by the way, passive and index. Fairly synonymous in terminology. So you're gonna hear both of those words. They mean the same thing. What it means is they're 

[00:15:00] copying an index. So take the S&P 500, for example, in the fund. They buy the 500 stocks in the S&P 500. And then they just hold them. And if the S&P 500 changes the index composition, they change their portfolio. So all of a sudden now their cost has gone way down. They don't have to hire the smartest and best portfolio analysts. And those that have had 20 year track records that demand high costs and high bonuses, they can just look at efficient ways of trading the portfolio and managing. To get it as close to the index as possible. So the index expense ratios are getting down to the 0.0 something percent, not 1%, but like one 100th of the cost of some of these expense ratios. So it can be extremely efficient if you are not trying to accomplish a specific goal. Targeting a specific style of management in the portfolio index and passive investing is great, and 

[00:16:00] in fact, you can still have a lot of control like these sector ETFs that Tim has been talking about. You can buy sector index ETFs so you can get exposure to financials or technology. For less than 0.2% on a lot of these differences, it seems like that's about where I find them, is somewhere between 0.1 to 0.3% instead of 1% for these sectors. Now, the worst problem we see, and we see this all the time, is that we'll pop the hood on someone's portfolio and their portfolio will be statistically extremely, highly correlated to the indexes. Yet they've built it out of actively managed funds. So let's say that in a different way. They are closet indexers. They have an index portfolio on which they're paying one and a half percent expense ratios and one and a half percent maybe, or 1% advisory cost. And that they're so frustrated by it and it's not really their fault. It's the idea of like when you buy this one fund that has

[00:17:00] 300 stocks and another one that has 300, another one, you put 12 funds together and all of a sudden you have thousands of positions. You look just like the index and you should have just purchased the index at the really low expense ratio. Anything to add on passive and active from either of you before we move on to mutual funds and ETFs? No, I think that was great. Okay. Mutual funds and ETFs. These are different structures in how you get the fund. So a mutual fund, you go to the fund company, you give money to the fund company, and they create new shares of the fund. They issue you those new shares, they take your money. Let's say you put $10,000 into a mutual fund. They say, great. Here is $10,000 of A B C D X fund. I give you those letters because that's how they look. They're four letters usually with an X at the end. By the way, three letters with two X's. That's a money market Mutual fund, usually four letters with an X at the end. That's usually a mutual fund. So you give money to B c

[00:18:00] D company, which is B C D X Mutual Fund, and they go out and they take your $10,000 and they buy all the positions in the fund. They issue you shares of the fund. An exchange traded fund is different. Those shares already exist. Nobody has to go in immediately and buy new shares. They exist and they trade on the stock exchanges just like stocks. That's why they call them exchanges. Traded funds, and there are some extreme efficiencies with ETFs. Imagine every single time, every day, you've got thousands of investors buying and thousands of investors selling in a mutual fund, and the mutual fund has to constantly be purchasing and selling and transacting. Whereas in ETF, Those people can just sell to each other on the exchange. It also can make it so the tax effects of owning these funds are less if you own ETFs, because inside a mutual fund, we're gonna get to that later. I'm jumping the gun. Let's go back to

[00:19:00] structure. So mutual funds, ETFs, the bottom line, one of them trades on the stock exchange. One of them you buy and sell from the company. Mutual funds are mostly active. Exchange traded funds are mostly passive, but the reverse exists in both. There are passive mutual funds and active ETFs, but most of the time, and I tell you this because your friends will be talking about, oh, I only buy ETFs, and what they mean to say is I only invest passive. But they don't know that active ETFs exist, and so anyway, that's hopefully helpful for you to understand. Just a reminder, those ETFs, since they're usually passive, they're usually lower cost. Having those expense ratios that are. 0.03%, 0.07%, while a mutual fund is often actively managed. So it's going to usually have a higher expense ratio, like Tim was talking about, maybe 0.6% to 

[00:20:00] 1.6% to 2%. So hopefully that helps. There's been a large trend towards going into more low cost index style, index based funding, and there's index mutual funds like Zacc said, and there's index ETFs, and both are much lower cost relative to the active. When you look across time, you know back from 2000 to now, There's been a huge increase in how much people have geared towards the index style investing, for sure. Massive. John Bogle with Vanguard really kicked that off and he did the first crazy enough. The first index fund was a mutual fund. He started that off and it was the S&P 500 and people thought he was crazy and nobody thought it would go. And then he showed how inexpensive it was, and his big belief was that it would outperform active managers. And the reality is it does outperform many active managers after their cost, which goes to show how hard it is to time the market. We won't go into all of that, but that is 

[00:21:00] interesting. Tim, were you gonna say something else? Go ahead. Yeah, so there's a market share. If you look at the market share, meaning of all the dollars that were out there in the investment world in actively managed funds versus index, 12.8% in 2005, 12.8% of the market was in index these passive funds in 20 20, 40 0.3%. Of the market share is in index. Wow. So let's just talk about Capita's philosophy a little bit here because we believe so . I used to play a decent amount of pickleball, and there's this, you can get up to the kitchen by the net or you sit back at the back of the court. But if you're hanging out in the middle, you're right where the ball is bouncing on the ground and there's no way to return, cause your paddle will just hit the ground if you try to hit it. And we strongly believe that there's a no man's land in the middle. Either be way, index way, passive at the back of the court is how I would relate that really 

[00:22:00] low cost, super diversified and have proper risk management or be way up at the front and if you're going to be active on the investment. And what do we mean by active? Let's be careful, is not. Actively trading, it's actively researching. You're trying to do something different than the index that's active. If you're going to have active management in the portfolio, we believe it should be more concentrated to fewer positions. Otherwise, you look like you're trying to play up by the net. You look like you're trying to be active, but you're not far enough up and you just are paying high fees and you're in no man's land in the middle. So a lot of mutual funds we feel like really don't do great service to their clients because of that. They look like an index, but they charge fees like an active, well, you gotta understand the reason why they're getting so close to the index is because that's their benchmark. So their jobs are on the line. If they don't beat the index, they need to be at least kind of close to it. And even if they beat it a little bit, then hey, they're doing a pretty good job, and they'll keep. A lot of them are just trying to stay close to it, even if they're 

[00:23:00] a little bit under it and they're just like, wow, we did pretty close to what we wanted to. Yeah, right. That's good enough. Okay. That's mutual funds and ETFs. That's loaded versus no transaction with some with commissions, some expense ratio, detail, and then passive versus active. We talked about all of that. There are rating agencies that help analyze funds. I don't think we spend a ton of time on it. Morningstar is a common one. They use a star rating for mutual funds, so you've got up to five stars. I would not rely on that. Most of the time. The Morningstar rankings are giving you a feel for how well it has performed in the past, and it may just be a beneficiary of that particular sector. For example, technology has done so fantastic. Up until this year had you looked at maybe the technology stocks and thought, gosh, these are gonna be just fantastic. You might have had an overweight to technology coming into 2022, which would've hurt. Okay, so there's a difference. So now that we've gone through the funds, there are advantages to buying funds and there are disadvantages of that. Let's spend

[00:24:00] some time on that. And then let's talk taxes, and I think you'll have everything that you need to know at least to get started in understanding funds with mutual funds and ETFs. The clear benefit is diversification. You can buy a lot of different investments with one keystroke buying one fund. I do this for my kids. College savings accounts, I can take $50 or a hundred dollars a month and I can put it in and I can buy 500 stocks, a thousand stocks all at once at a really low cost if I use passive no transaction funds, and that's great. That gives me a really clear path to do it really easily and cheaply. Now, if you own individual securities, you get rid of expense ratios entirely. No one is shaving off a piece of your investment. You have a certain number of shares of Apple or Google or Microsoft or whatever stock it may be, and there's no company in there shaving an expense ratio. It also gets rid of cash drag inside those funds.

[00:25:00] Those fund managers have to keep a certain amount of cash. And so you may have more cash in there than you want. You may underperform because of that, as markets go up, you also have more control. So we do a lot of tax planning with clients. If you have an opportunity, you can actually give investments to charities at a gain and not have to pay any taxes on those gains. You can control the gains and losses in your portfolio a little bit better if you have more levers to pull. But if all of those are collapsed into one, You only have one option. Is it up or down? And can I give it and sell it or buy it? And you don't have quite as much control or as many levers to pull. Some people may have, I get this every once in a while where. People won't want to buy investments within the tobacco industry or alcohol industry, or certain foods or oil and gas or whatever it may be, and you can control that a little bit better if you have individual stocks. It's very hard. You can't, I mean, if you buy a fund, you're going to have some minimal exposure to those things and 

[00:26:00] you can't control that if that's really important to you. Socially responsible investing is an option that's a little bit easier with individuals. And then taxes become a whole other category, but that's where you get additional control when you buy individual securities because you can control the Capital gains and losses. We talked about giving to charities and harvesting those losses, and then just in general on funds. When you own a mutual fund, this is the kicker. When I learned this, it made me so mad. Let's say that a fund has been existing, it's been run for 30 years and it has had Microsoft stock in there for the last 20 years, which has been an incredible ride for Microsoft. And you buy it last week and they decide it's time to get out of Microsoft and they sell their entire position of Microsoft. They now have to report the gains proportionately on that Microsoft stock to all of the shareholders. 

[00:27:00] Now you have to pay taxes on a gain that was achieved over two decades because you owned it for two weeks. That's crazy to me, but that's the way that it works. They have no way of attributing the actual gain appropriately over the years to all those investors, and that's inside of a mutual fund. Just to clarify, so ETFs a lot of times will reduce this. Yeah. They technically have a similar situation in the ETFs, but the way that they're structured, the ETFs don't have to go in and buy and sell or liquidate as. And over time, this is going too deep, so we won't go very far, but they have what's called active participants that are constantly providing the basket versus the individual shares to offset the supply and demand of it. So the bottom line is that ETFs are more tax efficient, they have a whole lot less Capital gain distribution requirements, and it works out a lot better. So I had a person I was speaking to. He had just deposited $250,000 into a 

[00:28:00] taxable account. Taxable account, meaning when you buy and sell a security and there's a gain, there's a tax consequence. You get a 1099 at the end of the year, you have to pay taxes on that. Well, he put this money into this fund. Two weeks before the fund declared a Capital gain distribution. And so he just put it in and then he didn't have a gain or a loss, but all of a sudden he had a seven and a half percent Capital gain distribution happen right after he put the money in the fund and he was so upset. He's like, What is this? And it's just a matter of being aware, and the timing too, of when you put your money into a fund, that could happen and they give you the distribution, but then they offset that with a drop in your price. So you actually have no actual increase in your wealth. You just have a tax bill. Super frustrating. Owning individual securities will allow you to control that a little bit better. Not that there's a run on the bank, but there's kind of a similar concept that exists sometimes if everybody else is scared and selling a fund. That fund has to liquidate 

[00:29:00] positions, which could put selling pressure on it and could affect you. Even though you might be stalled and holding on and have a high risk tolerance, owning individual securities could allow you to separate yourself from the poor decisions of others. Okay, so lastly, I want to reiterate, I'm hoping you don't walk away thinking that funds are bad funds provide some incredible opportunity to control the risk in a portfolio. To diversify to get access with smaller dollar balances. We have funds in most of our clients' portfolios, have some version of exchange traded funds, passive portfolios in there, and then we believe that you can supplement that and target specific goals by owning individual securities as well, and it works out great. Anything else to add on any of this? I don't have anything to add. Tim, do you have any last stats to add in there? I've got a bunch of stats, but I think something to just always keep in mind when you're looking at investing, don't think you have to do it alone. I think a lot of people think, I 

[00:30:00] need a million dollars to have an advisor. I need a lot of money. Sometimes advisors call themselves wealth managers, and some people think of wealth as well. I have to be super wealthy, but if you've got $200,000, a hundred thousand dollars, that's a lot of money. So don't think that you have to do this on your own, even in a 401k, like get some help ask. There's plenty of people that are out there, a lot of resources, and we're always happy to just help you look at the data. Yeah, our consultants told us we're not very good at saying that, so by the way, like if you're liking what you're hearing here, give us a call. We'd be happy to talk you through this. Interestingly enough, Tim, A lot of clients that are kind of middle to lower net worth, I think oftentimes have better portfolios than some of the biggest and highest net worth folks that I've seen, because their portfolios are more simple and they're not over diversified. We see that. Diversification is a good thing, but too much of it is a bad thing, and oftentimes the highest net worth people, so 

[00:31:00] both ends of the spectrum. If you're thinking like, I don't have enough money for this, you probably could do better than you realize, and your portfolio might end up looking better than someone who has $10 million. If you're at the high end of the spectrum, it's time to pop the hood, look underneath and see if you are paying too much and over diversified and make sure that you're comfortable with how that's working out. Thanks for joining us today. Hopefully this is helpful to you. Next time, Laura, we have real. That's right. We have real estate and then we'll be talking about options, futures, private markets. And then lastly, in this season, we'll talk about building your portfolio. So how do you put all these pieces together to make it work for you? Thank you, Tim. Thanks. Anybody wanna hear these stats? I'll keep them saved for you. Okay, as usual, over-prepared. Always. This podcast is intended for informational purposes only and is not a substitute for personal advice from Capita. This is not a recommendation offer or

[00:32:00] solicitation to buy or sell Any security. Past performance is not indicative. Or for future results, there can be no assurance that investment objectives will be achieved. Different types of investments involve varying degrees of risk, including the loss of money invested. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies, recommended or proposed by Capital will be profitable. Further Capita does not provide legal advice. Tax advice. Please consult with your legal or tax professional for advice prior to implementing any strategies discussed during this podcast, 

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