Plain English Finance

Ep. 15 | How Tré Invests — And What Most Investors Get Wrong

• Tre Bynoe • Episode 15

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Most Canadians think investing is about picking the right stock, timing the markets, or chasing returns. It’s not. In this episode, Tré breaks down exactly how he manages his own investment portfolio, and why simplicity, tax-efficiency, and a clear philosophy matter far more than hot tips or flashy products.

If you're a DIY investor, a skeptical professional, or someone overwhelmed by jargon, this episode will ground you in what actually works.

You’ll learn:

  • Why Tré uses low-cost, globally diversified index funds
  • The real difference between “market risk” and unnecessary risk
  • Why most people don’t understand what they’re investing in
  • The hidden danger of “tax-optimized” investments like swap-based ETFs
  • Why investing doesn’t need to be complicated to be effective

Share this episode with someone who’s still chasing stock picks or paying too much in fees — and follow or review the show to support smarter financial decisions.

Tre:

Hello and welcome to the Plain English Finance Podcast, the podcast dedicated to helping you make smart financial decisions. I'm your host, Trey byo, certified financial planner and chartered investment manager. I'm a financial planner with TCU Wealth Management and Aviso Wealth. For more information or to send in your question questions, check out the show notes at tre byo.ca/podcast. And if you want to learn more about me, start with episodes one and two. So let's get into the 15th episode. So this is, this is the first one? No, this isn't the first what we do series, but it's the second one. Uh, so the last one we did was on managing day-to-day finances, so that would be out a few weeks ago. And this one is on investment products and investing. Hmm. And this is, it's a small part of, well, it's not, I wouldn't say it's a small part of what I do. It's like. 45% of what I do, 40

Sierra:

big amount.

Tre:

It's a very large part of what, what, what I do for sure. Um, but there is other things. So when people think, okay, they think of a financial advisor or financial planner, they think investing. Mm-hmm. And that is a super, super important part of it, but it's not the whole thing. But anyway, this little miniseries thing is about what we do.

Sierra:

Yeah.

Tre:

So, um, fortunately we had two fun facts, fund facts.

Sierra:

Fun. Fun facts. Fun facts come

Tre:

in the mail recently. So we are going to review those two. Um, c has never really looked at these. Um,

Sierra:

what do you mean? It be fun to,

Tre:

to go through and hopefully pick up some things? I think there's actually a few lessons, uh, that we can take from them. Um. So first off, the structure that we use, you know, we follow, uh, the, the structure to manage our for the cashflow management piece. So this isn't part of that piece, but, uh, in the cash management piece we talked about basically bringing that income account back down to zero. Yep. So this, what we're gonna look at is not everywhere that it goes, um, but pretty much where that, that, that what's left over in that account goes to every single month. Um, or at least part of that.

Sierra:

So when, like, just to recap that, it was our paychecks go into the primary,

Tre:

the income account. Yeah,

Sierra:

the income, sorry. Yeah. Income account, primary income, I think it's called. And then our expenses, our, like everything we've budgeted for sort of thing, like our expenses, our spending money. Like s account, all that stuff comes out of that account and then whatever's left over goes, what we're going to talk about right now for investing goes into

Tre:

the investment piece. Yes.

Sierra:

Okay.

Tre:

Okay. Uh, but for some it might be paying off debt. I'm saying like,

Sierra:

I already know that. I don't know. I'm saying Okay. Like I know that, but I was just,

Tre:

oh, you have no idea where it goes. Let's be real. Um,

Sierra:

oh wow.

Tre:

Am I wrong?

Sierra:

I know it goes into HS or HXS and ga something, something. Yeah, exactly.

Tre:

Okay. Uh, so one other thing that we will touch on in future episodes is, uh, the, so for taxes for long-term tax planning, um, we still use that basic model that I spoke of, but CI's money gets invested in an account just in her name. Um, and mainly for long-term tax. Uh. Benefits, I guess because I don't, I want to avoid as much non-registered funds in my name. So just as a general rule, at the beginning of the year, I, we max out, um, our TFSAs, any RSPs that we're gonna be doing, um, all of that stuff. And then everything ongoing just gets shoved into, uh, a non-registered account. Mm-hmm. So, well, let's, let's deal with them both. So we are gonna go through, um, a fund facts. So we invest a hundred percent equity. We don't hold any bonds or anything like that. So we have the full, full volatility of the markets to, to enjoy and to experience. Um, that's, uh, there's been great times where that's felt like the greatest decision and there's been times when that's felt like the really crappy decision. Um, but overall it is, I'm very comfortable with market risk. Market risks specifically. Um. Yeah. So let's talk about two of them. So I know it was, this will actually get a, a little bit into my investment philosophy. Yeah. So the first one there was, uh, we're gonna go through the dimensional one. Do you see that one there?

Sierra:

Yep.

Tre:

Okay. Yeah, that, yeah. Grab the whole bunch. Okay. Perfect.

Sierra:

I don't know what that is. That's just the letter part. Okay. I think it's just these two.

Tre:

Yeah, just them. Yeah. Okay. So, dimensional Fund Advisors is a company that I, I deal with a lot and it's where a lot of clients money goes. Uh, and it is a. People call them index funds. Um, but they're not, it's not quite accurate. But they, they invest according to the efficient market hypothesis, which based of course, of course, which basically means that, uh, don't try to take bets and with individual stocks, basically. So we're not paying for a, a manager to go in and buy, uh, bell over, uh, Virgin Atlantic. You don't actually have that? Yeah, we do. Oh, you do? Okay. Um, not paying an advisor to pick between the two. We hold them both. We hold pretty much everything that is, um, that is out there. Like every company that is, that is out there. Um. That historically, when you look at the numbers and the evidence, that's been a very, very consistent way to invest and that's outperformed a lot of other things, uh, because of cost. So the first line there, you see the, the fund code, uh, but you see the name of it at the top right hand corner. What's the name of this particular investment?

Sierra:

Uh, DFA World Equity Portfolio. Yeah,

Tre:

exactly. Yeah,

Sierra:

you're correct.

Tre:

Yeah,

Sierra:

that's right. Thanks for saying top right corner.

Tre:

Yeah. So, uh, so this is world equity. This is everything in there. Um, okay. So then we see further down, you see it where it says management expense ratio.

Sierra:

Yep.

Tre:

Yep. Okay. So what does that say?

Sierra:

Oh, sorry, 0.31%.

Tre:

Okay. So do you know what that is?

Sierra:

Um, I'm going to guess. Um. Like I, I think it's something to do with how the company, like, because there's a management fee, I'm guessing, and that's the ratio somehow. I don't know what ratio, but somehow that's what it is tied to.

Tre:

Yeah. So this investment takes, uh, 0.31% every single year of whatever's invested in it. And that's, that pays DFA, so Dimensional fund advisors that pays that company to manage the money on your behalf. Okay. Okay. Yep. Um, do, do, do, if you scroll, if you look down, you see the big pie. Yep. Okay. So on the right hand side, uh, name some of the things that, uh, or the left hand side, you could say top 10 investments only has seven, but name some of the stuff that's in there. Some

Sierra:

of the stuff is DFA US Core Equity Fund. So what

Tre:

do you think would be in that?

Sierra:

Um. I guess US Core would be like companies that are very big in the US I would guess.

Tre:

Kind of, yeah, so remember I said it just holds everything. That's what this is. It's just everything in the us.

Sierra:

Oh,

Tre:

and then there's international core. That's also just everything internationally,

Sierra:

like everything in the world. I don't understand.

Tre:

There's 15,000 different companies in this portfolio.

Sierra:

Oh, wow.

Tre:

Last time I checked between 15 and yeah, I think it's 15, 15,000 different companies in this portfolio. Yeah, it's a lot of companies. It is everything. It's very literally when I say, so when you're like, I'm gonna everything, I'm

Sierra:

gonna invest in this, you're basically investing in everything.

Tre:

Yeah, you bet. In the world. Investing in the global economy.

Sierra:

Interesting.

Tre:

Yeah. Okay. Don't take bets, right? Like the, the bet is that we as humanity will continue to make progress, and if we don't. Probably dead anyway.

Sierra:

Bigger problems.

Tre:

Yeah, pretty much. Pretty much though. And, and this is why, yes, we're invested a hundred percent equity, but the type of risk is really important. But anyway, international. Um, and then you see Canada as well. Yeah. So we have Canada, there's also real estate in there as well. But this is just a, uh, relatively cheap global portfolio of all the stocks. Um, this DFA. So what they do differently than somebody, like, have you heard of Vanguard?

Sierra:

Yeah.

Tre:

Okay.'cause we own some of that as well. Uh, but the, the difference is that, uh, Vanguard, they have similar type of things, but DFA is tilted more towards, uh, small and value companies. Okay. So when you look at the data, historically, small companies have grown more than large companies. Mm-hmm. And intuitively that, that makes sense. But it's not the small companies that make the headlines. Hmm. Right. So it's the big, big companies that make the headlines, but what do you think is easier? Taking a company from$10 million of revenue to$50 million of revenue, or taking a company from$50 billion of revenue to a trillion dollars of revenue, the first, it's, it's significantly easier to grow in smaller companies. So intuitively it makes sense, but it applies to investing. What we do find, though, is that small companies tend to be more volatile than larger companies. Yeah.

Sierra:

Right? For sure. So

Tre:

if

Sierra:

you want the big growth, you gotta be prepared for the, the

Tre:

and downs that come along with that. Mm-hmm. Exactly. I'm okay with the ups and downs that come along with that. So hence we, we, we have them. But that is something that, um, I, I talk a lot about aligning your timeframe with the type of investments that you hold. That doesn't mean that you can. There aren't ways to pick lower risk, like lower actual investment risk type companies within equity. So let's say your time period is really far away. I would still rather pick blue chip companies, which is maybe a phrase you've heard of.

Sierra:

I have heard of it. I don't know what it means.

Tre:

Just means ba basically just means the large companies.

Sierra:

Okay. The

Tre:

large, big companies, established companies. I would still rather take that approach and buy them than put it into Gs or bonds. Mm-hmm. Right. Just because if the timeframe is longer, I still wanna own a company, but if I'm not comfortable with the ups and downs, maybe I pick to own Walmart instead of smaller. Yeah, that's exactly what I was saying. A smaller company, right? Like you. Yeah. But anyway, this, this particular portfolio is tilted more towards smaller companies. Um,

Sierra:

but Okay. So you say tilted more towards small companies, but if this is. Maybe this is a dumb question, but you said like the US core is like all of US companies. Mm-hmm. So how could it be tilted towards small companies?

Tre:

No, that's, that's actually a really question. Okay. Okay. So A, so if you had to pick away to hold a hundred companies, how much of each company would you hold?

Sierra:

Oh, I see. Wait. Oh, because these are, sorry. Ask that question again.

Tre:

So I give you a hundred companies that you have to hold.

Sierra:

Yep.

Tre:

How do you determine how much of each company you get you hold?

Sierra:

How do I determine that?

Tre:

Yeah.

Sierra:

I just wanna make the most money to be honest.

Tre:

But how do you know that in advance? You, you don't know that. I

Sierra:

ask my husband who's a financial advisor.

Tre:

I, so they typically, people use something called market weighted. Oh, market cat weighted. So the, well, that's bigger. The company, there's, there's different ways to do it though. But the bigger the company, the bigger portion that you own, right. Of that, of that, uh, of that group doesn't make sense that that's okay. Uh, I'm gonna bring up the s and p 500 real quick. Okay, so this is the s and p 500. I'll get you to grab that. Okay. So you'll see there, I can't see anymore, but you'll see there a, a list of companies.

Sierra:

Yep.

Tre:

Okay. Uh, it gives you like the top 10 or top 20 to the say there

Sierra:

it says Nvidia Corp, Microsoft, apple. Okay. So

Tre:

next to Nvidia, what, what percentage does it make up?

Sierra:

Um, 7.32 blah. That's fine. Yeah.

Tre:

So in this fund, this is a Vanguard s and p 500, which we also owe, owe some of, but that is the percentage of that company. So you put a hundred dollars in$7 of it is in Nvidia.

Sierra:

Okay. Yeah. Okay.

Tre:

Keep going down the list. So

Sierra:

then Microsoft, which is 7.0. Okay.

Tre:

So$14 of that a hundred dollars is now in those two companies?

Sierra:

Yep.

Tre:

Okay, keep going.

Sierra:

Apple 5.8.

Tre:

Okay. So that's now 19%. Let's call it 20% within the first three companies. Okay, let's stop there. It gets, it gets worse, but So you put in a hundred dollars. Mm-hmm. You think you're very diversified.'cause you think you have a fact. This is s and p 500. So it's 500 different US companies. Yeah. Basically. But so far you've put in a hundred dollars and$20 of it is only in three companies.

Sierra:

Ah. It's heavily weighted on, it's heavily

Tre:

weighted on the bigger companies. Yeah. Makes

Sierra:

sense.

Tre:

So the difference between something like that. And the dimensional is they tilt it away from it being so heavily weighted in the big guys to being a little bit higher weighted in the small guys. Which means that maybe in a typical portfolio like that, you know, the smallest companies in the SP 500, there's no real small companies, but for argument's sake, let's say it makes up 5% for a thousand small companies, well, they dimensional will increase it to 10%.

Sierra:

Okay.

Tre:

So it's not huge, it's not saying that it's these huge, it's not like tilted, like flipping the No, no, not at, not at all. But it's just so you have more exposure there than you would do in a typical market weighted index fund. Hmm, interesting. Okay. So that, yeah, that's, that's the biggest difference between. Dimensional and, and Vanguard.

Sierra:

Okay. I do have another question. Okay. Because I, is Vanguard the exact same as s and p 500?

Tre:

No. So Vanguard is a company that creates investment vehicles. So typically ETFs, they do have some mutual fans, but that's all they do is they just create the investment vehicle and manage the money. The s and p 500 is a measure of the top 500 companies in the us Okay. Basically.

Sierra:

Okay. Gotcha.

Tre:

Yeah, and it, it's, it's fine. This is going down a rabbit hole, but the s and p 500 people assume it is a passive index. Mm-hmm. It is not a passive index, so. You there are qualifications and there's a group of people that determine whether companies get into the s and p 500 or not. And this is what actually happened with Tesla is there was a period of time when, because they weren't profitable, they, they didn't meet the guidelines for being in the top 500 companies. And it meant that when they finally did get put into the s and p 500, I think they, I can't remember, you can't quote me on this, but I think they came in at like number 20 or something. Like, it was like they missed the first 450 odd places where they should have been in there because it's a group of people that sit down and determine who gets added to this. Ah, so the efficient market hypothesis, which is what people inherently invest, are investing in. They, when they, when you go with index funds, you are kind of saying, okay, I think that all the information is baked into the price and or at least should act accordingly. Um. So that's, that's how I'm gonna choose to invest. And then they will say, okay, well I'll pick the s and p 500. And it's like, that's not,

Sierra:

that isn't,

Tre:

that isn't the saying that is picking the s and p 500 is not you investing in that capacity. Not to say it's a bad investment, but it is intellectually dishonest. You know, you can't say, Hey, I am a, I'm a a I, like, I believe in the official market hypothesis and then invest in the SB 500. That's not a, that's not a good substitute. Um,

Sierra:

do people understand that? No. No, people don't

Tre:

at all. Um, a a great example, I was working with somebody and they were putting together a, I was helping them put together a portfolio, talking about it, and they came back to me wanting to compare. And they're asking like the difference between an s and p 500 fund and a whole market US fund. And they, I know people will compare them. You, they are not the same. They are not you, you're not picking, these are not apples to apple's comparisons. Mm-hmm. Because one of them is the entirety of the US stock market, which is which, uh, falls more in line to the efficient market, um, theory. Yeah. Versus the SP 500, which are just picking the group of the 500 companies that this group of people think are the biggest companies and deserve to be part of this index.

Sierra:

Who are these, this group of people.

Tre:

Standard and pause. Not gonna get into that. It's group of people. Is it a conspiracy? No, no, no, no. It's just that the people that put the index together. Right. It's, it's, yeah. It doesn't really matter. It's just, it's not the same, basically. Yeah. Okay. Um,

Sierra:

no more tangent. Yeah.

Tre:

Sorry. I'll get back to, okay. So Kate, keep going down. Uh, it's the next page

Sierra:

on the back.

Tre:

Yeah. See it says the risk ratings Lemme see. Yeah. Okay, so read the top left hand paragraph. It says, how risky is it?

Sierra:

You want me to read the whole paragraph? Yeah. The value of the fund can go down as well as up. You could lose money. One way to, sorry. It's really dark right now. I'm struggling to see. Okay, I'll read

Tre:

it.

Sierra:

I'll already it. One way to gauge risk is to look at how much the funds return changes over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Okay. Risk. Oh, sorry.

Tre:

Yeah, that's fine. Um, so that's the measure of risk that we spoke about in previous. Parts. Um, so that's just like episodes in previous episodes. So this fund where, do you know what it's rated as?

Sierra:

It, well, it's pointing to medium.

Tre:

Yeah. So this is con, this is considered a medium risk fund. So as a general rule, because it is, because it's based on volatility, I'm gonna kind of give you a different measure mm-hmm. Of, of risk to think about it this way. So a, an all equity fund that is investing according to the, like a broad markets holding really big swaths of companies is medium risk. Like, think of that as when, when people think in the, you know, is that risky or not medium risk. Okay. Mm-hmm. Not, not, or just not. Using volatility. Just think it's medium risk. A company that is a group of, like a fund or something that is investing in a group of blue chip companies. So they pick like 30 different companies. And they're

Sierra:

big companies. Big

Tre:

companies. That is a medium risk investment as well. Okay.

Sierra:

Yeah.

Tre:

As soon as they're the, it's a group of companies and they're in only one or two industries, so let's say they're investing in mining companies you are now jumping to and they're small companies, you're now jumping to high risk. Yeah. If they're big companies, you're now looking at medium to high risk. Okay. If it's all in one area of the market, right. I don't care what, I don't care what the area is, that's the way that I would. Categorize that type of investment. Yeah. A balanced fund when the So balanced fund is like 60% of it's in equity. Mm-hmm. And 40% of it's in like fixed income and bonds and stuff like that. Yeah. I would categorize that if the equity part is in bigger companies or an index type investing, I would categorize that as low to medium risk when it, when you're thinking about it, um, in the like medium term long term, again, you're adding risk. The longer you bonds are not good for long, long term. Yeah. But I would say that's low to medium. Um, and anything lower than that, I low risk. I hate assigning. I do not like when people are looking for like a low risk investment. There is a ton of risk when it comes to'cause because a low risk investment is gonna basically be. Something that doesn't move very much at all. Yeah,

Sierra:

like volatility,

Tre:

which volatility wise, which means that there are ti you are taking a lot of risk with something else. Yeah, so I don't really assign anything to low risk. Um, I would say the lowest I would realistically go if I was investing would be that balanced approach and low to medium. Um, but we invest all equity and it's me. This fund though, is considered medium risk, but that means 2008. What do you think this type of fund would've dropped?

Sierra:

Probably not as much as other ones.

Tre:

Oh yeah. Throw out percentage.

Sierra:

Well, I don't know. Um, 20%.

Tre:

We wish 40%.

Sierra:

Alright. I was close. So

Tre:

what, uh, so that means, so you had a million dollars in there, that means that dropped to$600,000 at some point during that scary event. Mm-hmm. Right. That is what you have to be able to sit through when I am, when we're putting money into that. That's, that's what I'm thinking in my mind is I have to be okay with that type of drop for me to put the money in there. Yeah. I am okay with that type of drop because the upside is significantly better. So the next part on that sheet, the lower part, you'll see annual increase, st decrease. You see that little graph? Oh, yep, yep. Okay. Uh, so read back the last, what you see there. So like 20 20 20. What did the fund do?

Sierra:

20, 20 20.

Tre:

2020.

Sierra:

Um, 4.29%.

Tre:

Okay. 2021.

Sierra:

21.3 9,

Tre:

20, 22,

Sierra:

10 point. Zero eight,

Tre:

no minus.

Sierra:

Oh, sorry. Yeah, minus 10. I obviously did really well in math in school. Read this graph. Minus

Tre:

10.08. Yeah. 2023. Big

Sierra:

drop. Okay. Uh, 2023 is 16.42.

Tre:

2024.

Sierra:

18.5.

Tre:

Okay, so

Sierra:

what happened in 2022?

Tre:

That was when interest rates, do you remember interest rates went up?

Sierra:

Yeah. Like our mortgage and stuff?

Tre:

Yeah. And bond prices, bonds, um, bond prices, uh, dropped significantly. So that low risk investment type with a bunch of bonds in it, lost a, went down in value a lot, and they're only just now-ish breaking even. Um, and the equity markets went down at the same time. So hence 2022, a 10% drop in the markets. Don't care. Sounds really bad. Every single year, pretty much at some point in the year we'll have a 10% drop. Whether that drop is in December and it gets recorded on this little graph.

Sierra:

Oh. Or

Tre:

it's in February and it doesn't get recorded on the graph.'cause the recovery happens in, within the timeframe.'cause this, this number is only from January 1st to December 31st.

Sierra:

So they don't figure out what it would be throughout the year. This

Tre:

doesn't tell you what the route was. This doesn't tell you how low it went during the year or how high it went during the year and came back to, you know, 2024, it says 18%, it could have went up to 30% and then back down to 18%. And we don't, you don't see that by the numbers. Yeah. But people forget that. And it means that when drops do happen and get recorded, it, it's a little bit scarier. Yeah. But I mean, if we, if we suddenly decided to measure from September to September, the numbers would look very different, but the growth would've been exactly the same. So just something to keep in mind to that. Yeah. Um. Yeah. N negative 10% drops. They happen almost every year, and it's at some point during the year, and yet the vast majority of the years you see landed positive. In 2020 we had a 20% drop and it was up 4.3%. You would never have really known if you just looked at the numbers, but everybody remembers COVID.

Sierra:

Yep.

Tre:

So

Sierra:

well, you'd be like, oh, COVID didn't really affect this very badly.

Tre:

Right. If you just looked at this little chart, but we all know it did. Yeah. Um, so yeah. And that's the reason why even if, again, even if I was, you know, I think about it, okay, 2008 happened, it could drop a bunch, but the fact is even if it did right now, you'd still be ahead. Right. You'd still be up more than over that time, over the last five years, you'd still be up more than whatever you put into it. Five years ago, even with the drop.

Sierra:

Yeah.

Tre:

And that's part of the reason why I don't hold cash.

Sierra:

And I again though, it's, what did you call it? Is it anchoring bias? Anchoring bias, yeah. Do you know what I'm talking about? Where it's like, even though you have more money from investing, you always like get stuck on the high number. It's like, ah, I didn't make that much though. It's like,'cause you saw that number. Yeah,

Tre:

exactly. You, if you, if you're, if you are, if it's invested and invested and it gets to a million dollars, you, you are an, and it happens a lot around whole numbers. Like you are anchored to a million dollars. You're like, oh, I went down to 900.

Sierra:

Yeah.

Tre:

And you don't, you don't sit back and think, okay, I actually went from$400,000 to$900,000. That's still a lot of growth. Great growth. You think I went to a million, I was at a million dollars and I dropped to$900,000.

Sierra:

I lost a hundred thousand dollars. When

Tre:

in reality that's the, that's the. That's the experience of investing. Right? Which is why I, something that a lot of clients, uh, probably get frustrated with me at. Uh, so when somebody comes and they say, Hey, I need more money than we had originally planned for the way that what I do is I work out where I want them to be at every single year. Um, and if they're over that number and the markets are up, I say, do it. Like go spend the money, do it now, because who knows what the future is gonna hold. Yes, the markets could continue to go up, but why take the risk when you wanna do it? Go do it. You can afford to do it. Um, but it just means that, yeah. So when the markets are up, it's like, I'm, I am all forgoing and spending and doing the thing. As soon as the markets drop though, then it's like I'm back to, we, we set an amount, we have a specific amount that we agreed on it, we're. We were spending, because that's what I have invested in some Gs, you know, like it's, it's like, no, this is, this is how it works. So I feel like maybe they get a bit of a yo-yo, uh, a yo-yo tray. I, depending on what the markets are,

Sierra:

what version of Tray we're getting today. Yeah.

Tre:

It's like,'cause sometimes they'll come in, they're like, oh, I'm thinking of buying this$60,000 car. Like, yeah, I'll send you the money. Great to go do it. Then other times it's like, Hmm, we spoke about this. Maybe we should wait a year. So you're like, this is,

Sierra:

this is what the numbers are saying. Yeah, I think it's a bad idea. We've

Tre:

had a few drops in the last little while that has caused me to put the pause on some people's overspending, like more than we had originally agreed to. But, um, yeah, so that's the, that's when you look, that's what the net, that part is. And then on the last page, the, the main part is it talks about, it gives you a breakdown of the fund expenses. So it says, you know, for every a thousand dollars invested,$3 and 10 cents. It gets taken for expenses. The ratio. Yeah, that's the management expense ratio. Okay. Yeah. So that kind of makes sense. I think so. Yep. Okay. So for this one, this is actually where, uh, we, like I say, we, I empty that account every single month, but I do know roughly how much is gonna be in that account. So what, what we do is it gets set up, um, this chunk goes into this fund, and then what's left that isn't, um, I haven't already accounted for. So what's left in the account after this has come out, that then gets invested into various other things.

Sierra:

So you're like, okay, I know like our income is about this amount, but it does fluctuate slightly. So if you're like. I'm going to take this amount that's left. Like let's just use a thousand dollars just for easy. Well let, let's say

Tre:

like, you know, in that account, typically your income's gonna fluctuate by$300 a month. Yeah. Let's say I just throwing out a number and you might say, okay, I think I'm gonna have around$2,000 left in this income account, so I'm gonna put aside automatically$1,500 of it and then whatever's left I'll send away. So

Sierra:

you'll like do it yourself? I'll do it

Tre:

manually, yeah. Yeah.

Sierra:

Okay, gotcha. Yeah.

Tre:

Yeah, exactly. So yeah, that's where that, what that little chunk is that goes off into this one. Mm-hmm. The other one, so you have it there as well. What's that one called?

Sierra:

The Global X? I actually, I don't know what, like, I do know, I hear you say these words. It's, I, I feel like, okay, I just wanna clarify. I do know some stuff, just sometimes I struggle to retain things and I think that is the problem here. I do know that we're invested in dimensional, global X, blah, blah, blah. Anyways, s and p 500 Index, corporate corporate class, ETF.

Tre:

Okay. So a really important thing, well, actually let me back it up. What do you think this is invested in?

Sierra:

Well, this is an a trick question. Yeah. I'm like the, it's global. So global.

Tre:

Oh. Global X is the name of the company. Dimensional Fund Advisors is the name of the company.

Sierra:

Oh,

Tre:

so look at the other sheet. Yeah, the dimensional one. Yeah. So they lay them out pretty similar. Yeah. So fund name is Global X is the company name.

Sierra:

Yeah. Okay. Just wait then. Sorry. Um,

Tre:

say what you're thinking. Say it.

Sierra:

Cash held for collateral.

Tre:

Okay. What a key thing that you need to know. Everyone listening to this needs to know. If you do not understand it, do not invest in it. Simple as that.

Sierra:

Oh, well I've broken that rule. Well, you, you are in

Tre:

charge of rest it. But sim, sim, simple, simple, simple rule. So if you're reading through, which you should be reading through, at the minimum you should be reading through the fun facts before you pick an investment or choose it if you're looking at it. You, you do not understand it at all. You need somebody to explain it to you. If you do not understand it after that, do not invest in it. So this is the s and p 500 kind of, but it's not,

Sierra:

I don't like that.

Tre:

Yeah, I know. And this is why a lot of people will buy something like this and they don't really understand what they're buying.

Sierra:

Yeah.

Tre:

So I'm gonna, I'm gonna read it to you. Okay. The investment objective of the ETF is to seek to replicate to the extent possible, the performance of the s and p 500 index net of expenses. The s and p 500 index is designed to measure the performance of the large cap market segment of the US equity market. The ETF may use derivatives such as swap agreements or multiple swap agreements to obtain exposure to its underlying index without investing directly in the securities that make up its underlying index. Yeah.

Sierra:

Super clear.

Tre:

Yeah. Makes

Sierra:

a lot of sense.

Tre:

So the reason that we are holding this is because it is a, it is corporate class. Corporate class just means, well, it's a more, it's a more tax efficient way of investing. It can be a more tax efficient way of investing. So this basically buying this ensures to the, to what we can do is that there's no ongoing distributions from, from the ETF, which means you, you're not having to pay as much tax as you go, but it does open you up to other types of risk. And one of these in this case is you are exposing yourself to index swaps. So they basically go to a a, a bank, let's say, and they say, if we give you this much money. You'll give us an agreement that allows us to invest that's gonna go up and down, similar to what the s and p 500 is doing,

Sierra:

basically. Oh my gosh. I'm not gonna lie. This is like really?

Tre:

Yeah, do not buy something like this unless you understand the true risk, because the advice is different depending on what's happening in the world. Like I would always say, don't sell, like you buy something like an index fund. Don't sell it. Like if the markets are down, et cetera, no matter what's happening, financial systems are in trouble, et cetera, et cetera. Don't sell it. We've seen through history, just keep hold of it. You have the legal system to protect you to a certain degree. Yeah. When it comes to derivatives, where it is based on the asset, not the asset itself. Completely different ball game and a. But I, my recommendation would be, would be completely different if, depending on what was happening in the markets, not in the markets, depending on what's happening in the financial industry, my recommendation might be to sell something like this, even if it was down 50%.

Sierra:

Oh my word.

Tre:

And that's again, do not buy something that you do not understand.

Sierra:

I'm stressed. Everybody else.

Tre:

Well, part of of my letter that, uh, you, you'd get if I die, part of it is to sell stuff like this.

Sierra:

Oh.

Tre:

Because I don't want, thank you. I don't want you to, even if there's the tax hit and stuff,

Sierra:

this girl does not know what's going on.

Tre:

I don't want you to have to deal with this. Um,

Sierra:

thank you. But it's thoughtful. Yeah, you're welcome.

Tre:

Um, but something like this is, yeah, it's really useful. It's been a very, a nice tax benefit for us to, to use. Um, and I think the, the risk is worth it for us. Doesn't mean that's the case for everybody. Um, so yeah, don't invest in something that you don't understand.

Sierra:

So I guess like, here's the thing, here's where I like for that advice. I would say, if I didn't have you, how do I put this? I'm just, because I struggle, like to retain this, it's like you're telling me stuff and yeah, it kind of make like, it makes sense and then like I go about my life and I forget it because I never look at this stuff again. Or never think about it. It's like, how do you,

Tre:

it doesn't mean you have to,'cause I, I do the same thing with lots of different topics. I would say it doesn't mean that you have to ongoing remember exactly how it is or exactly what it is, but you need to understand how it works.

Sierra:

Yes. But I feel like that's, but you only

Tre:

need to do that once, and that's the benefit of making any, any, like going through a good decision making process is you taking the information, you learn it there, and then you make a good decision on it, and then you move on and, you know, you might not remember all the details, but you know, at one point you got the details, you made the decision, you understood it. Mm-hmm. And you can stick to that decision. Yeah. Because you know, you have went through that process. The scary part is when you didn't go through that process and then you're like, well, should I be changing it now? Like, like, because you'd never went through process of understanding it in the moment and making that decision. Yeah. So if it's something that you don't understand, don't invest in it. There are very simple ways to, to invest. Yeah. Right. Like you compare that to, I didn't plan on this. I don't have it printed or anything. Sorry. But that, no, that, that other one that we looked at just looked at. Um, where, so this is, that's the s and p 500 as well?

Sierra:

Mm-hmm.

Tre:

Right. What's it invested in?

Sierra:

It says top 10 investments, apple, Microsoft, Nvidia, Amazon.

Tre:

So the way you explain that is, hey, you have this money. That's how it's invested.

Sierra:

Yeah.

Tre:

Simple,

Sierra:

easy. Yeah.

Tre:

Easy. Compared to when you're like, this is the, when you walk

Sierra:

into the bank and they have an agreement with it. Exactly. And it's the s and p 500. I'm like, what

Tre:

exactly Compared to what it says on what the top 10 investments are on that fund. Fund. Facts. Right? Yeah.

Sierra:

Cash held for collateral, which I'm like, I don't

Tre:

buy it. Simply, simply put, don't, like, it is not worth it for you to be buying stuff that you don't understand. Especially because the, the world is so big and people think that, oh, well the more money I have, the more complicated it should get. It really doesn't have to, you know what the re bugs me, the CBP investments, you know what they should have done? CBP biggest, one of the biggest pension, um, funds in the world. Mm-hmm. Like CBB Canada Pension Plan, and they just released their performance. They would, and they have a ton of like, these, like private debt and like private equity funds and all this stuff in there. And when you look at the performance, they'd been better off putting it into a global index fund and just leaving it alone. You're like, okay, so you employ how many, I don't even know what the size of their team is. 10 tens, probably hundreds of people to try to pick the best investments and this fun thing and that fun thing. And it would even better off you just having one guy that just buys presses a button, buys the index. Like, are you kidding me? So again, keep it simple. It doesn't have to be, does not have to be complicated at all. Keep it simple. I guess the thing

Sierra:

is though, you like Yeah, because I'm just like an average person. A normal person who is not really, I'm not interested in this. Like, I would learn it if I had to for the benefit of myself, but it does not interest me. I'm, I'm not, it doesn't give me anything. You know what I mean? Versus you, you really are like, you love to learn this stuff. You're interested in it, you like learning how things work and like those kinds of things I guess. So I was just thinking. I guess the difference for you is this probably is, oops, this probably isn't all that complicated. You know what I

Tre:

mean? Yeah. And I understand how it works and how it fits into us. I understand the risk we're taking. I also understand what would have to happen in the world for me to be concerned about it. Yeah. So, yes, as I said though, I like, we would still be in a great position if I didn't do that, and we just. The s and p 500 with that. Yeah, with that money instead. Yeah. Right. Like these are just a, this is like an

Sierra:

optimizing thing versus a Yes. Which again is why I hate the optimizing like culture that we have. Because people will look at this and be like, I think have to do it. Do it as well learn. I have to do it because I need to be optimizing. I need to save$500 of tax. It's like, no, you don't. Not for the cost of like whatever. Like maybe it is worth it, but if you can learn it and understand it. But if you're like me and you're like, I could do other things, other

Tre:

things better, better do other things with your time, do those things. Yeah. Absolutely. Not worth it. Honestly, it really, like, there are so many very, very simple ways to invest and just to, to make it easy on yourself If you, why over complicate it unless there is some real, real value to it. Yeah. So one of the things that I do do that. Can like maybe seen as overcomplicating it. So for example, this original fund that we held, this

Sierra:

dimensional,

Tre:

yeah. DFA 9, 2 2. So I will hold like, so they have the US court equity fund. Mm-hmm. And then I will hold that separate then the international. So instead of putting it all into a portfolio, um, so a large part of our portfolio is already split out into Canada, US International, which means that because we are a hundred percent equity investors, stuff is always going on in the world. And I want to ensure that no matter what's really happening, I have somewhere to pull money from. Mm-hmm. So, and then I'll go in and rebalance it. Um, typically I'll rebalance it through the money that, like, not the money that's automatically going in, but the extra stuff that is, is after that. Yeah. But that, but that's a safety thing. Be purely because I, we are a hundred percent equity. If I didn't even want to go that far, I would probably get somebody else to do it and then just hold a bigger emergency fund, right? Mm-hmm. Like you can keep it very simple. It doesn't have to be complicated and really complex. Yeah. It's just, it can be really simple, which is why this and this account is actually where I writes money. It's, this is the dimensional one that's, yeah. It could make it all complicated and fancy and probably save, I dunno, 0.02%, like very literally. That's probably what it would, I could probably save and it's just not worth it. It's, I would rather That's arias stuff. I put it in there. Don't have to think about it. She's 10 months. Yeah. Figure that out in 18 years Yeah. When she wants a car, you know, like it's, it doesn't have to be complicated. Yeah. So, yeah, so we, I, we use index funds. That's the way, the way that we invest. I, yes, I do have some mutual funds. Like I, I hold a, again, small cap fund. I, I think if you are, if I'm truly gonna try to make extra return, it's gonna be in stuff that's backed by data. So small cap companies is where I've added, we have bought individual stocks. Some of it's done well, some of it's not so, not so great. Yeah. Um, and I, and that's part of the reason why I would say for a lot of people and myself included, um. Why? And, and I say it's very critically'cause I like picking in. I still go in every once in a while. I'm ins you do pick at individual companies and like, you know, like I enjoy researching them, et cetera. And it's, I'm in that world. So I, a lot of different companies come across my desk. Um, but ultimately I have to, I have to weigh picking this individual company over, over just putting it in the basic index. And I would say 99% of 98, 90 9% of our portfolio is in low cost index funds. Yeah. And there's the, or at least groups. Um, and then there's the rest that, yeah, I'll pick stocks here and there and

Sierra:

yeah, fun

Tre:

and enjoy it. But again, I, the. The index part of my portfolio has definitely performed better, which is, and the thing about it is I've had probably, I've picked probably 15 different stocks that I've done really, really well. Um, but it only takes a few high conviction losers to, not to, you're like, why am I doing this? Like, why I, I do this? Yeah. Um, even if you did it right in the first place, maybe you'll have a wife that will convince you not to, Hey, don't tell story. Okay. Moving on. Okay. Um, so yeah, so that is pretty much, that's basically the way what we used to invest. And I, I would say keep it simple. Like Vanguard have a great suite of like, and whole market stuff. Like if you are wondering do I buy the s and p 500 or do I buy just the entirety of the US market? By the entirety of the US market. Mm-hmm. Like, don't take the added risk. I know people in the last 10 years, the s and p 500 has definitely outperformed a whole market. Not by much at all. At all. But there are, there are periods of time when the SP 500 was well overinflated and large companies did terrible. Yeah. Um, when you look throughout history, small companies have outperformed larger companies. Hmm. So the math is there, the numbers are there. So if you are going to, if you do want to take a set it and forget it approach, that's very likely gonna give you good returns. Just buy whole market stuff. Keep it simple. It's not, and be done with it. It, it doesn't have to be in, in the, I would say this is very specific to the growing part of your life. I think when you get to relying on the money, money for. For income, you do need to like

Sierra:

retirement,

Tre:

not just retirement. Like, like for us, because we're a hundred percent equity, it is a little bit different where I do need more options than just, you know, I could just put it into a global equity fund. Like Global Index Fund is do nothing else. Yeah. That would be a little bit risky for us because we're a hundred percent equity and we don't keep the ton of cash or anything. Yeah. And you know, if we need something, I'm gonna, I have to go into the portfolio to get it.

Sierra:

Yeah.

Tre:

Um, not to say it'd be a bad decision,

Sierra:

it's just comfortable that it's just crappy if, if the markets are like down at that time. Yeah.

Tre:

So, but most people aren't, that aren't invested that way. Um, a lot of people will keep some excess cash or whatever to. To help with that type of thing. Uh, but yeah, just keep it simple. It doesn't have to be complicated. Just no pri we don't hold, I have access to private equity stuff. I'm accredited investor, so we can get into pots of here and there and like, it's, keep it simple. Low cost. I'm

Sierra:

very glad to know we're not doing that.

Tre:

I saw somewhere it was, uh, Rob Brown. Rob Tom Brown. Dang. He's a, he's a big advisor in the US anyway, he, he's on the TV a lot and he showed a chart of, so venture capital is like, uh, a private equity is the craze right now. Um, it's very expensive and a lot of very wealthy individuals are putting money there and they're being sold it as if it like helps. Minimize risk and risk measured by volatility because it's not on the market. It doesn't get valued very often, which means it looks like it's doesn't just going up very much. Just going up. Yeah. Um, that's just not the reality of it. But it's really funny because the, the funds have underperformed the company's stock, so it'd been better because they're so expensive and the companies make a ton of money. So you want to get into somewhere, like, honestly, if I had to redo and just, my goal is to make as much money as possible, it'd be private, private equity. Wow. Because you can charge outrageous prices, underperform the markets, and still rich people are willing to give you their money. Like it's, you're like

Sierra:

more, you have

Tre:

advisors that are telling them. Yeah, well, you know, it, it, it helps with volatility, it helps with the ups and downs. It's like. Well, they're taking like 6%. So it better, like, it's, it's, it's such an expensive age. Just, just pretty until, and that doesn't mean that it won't always be the case, but until we see evidence, like actual evidence, it's not something that I'm gonna be holding or putting in client's portfolios. It's just so expensive. I do think that will change. There's a new, uh, fee disclosure thing coming, CM three, uh, coming at the end of next year. I think it is. When everybody has to disclose the full fee of everything that is, that clients are paying and everything on their statements. How is this just happening? I know it's cr don't even get me started on that, but Yeah. Crazy, right? Uh, but finally it's gonna, that's coming and I think people are in for, I think it's gonna be great. I think it's gonna be great for the industry. I think there's, there's so many people with a lot of money sitting there in like, RBCs. Balance fund paying 1% on$10 million, which is crazy. Uh, but they're not paying 1%, sorry. Paying two point something percent on a$10 million

Sierra:

because they don't see part of the fee. Uh,'cause

Tre:

they, they don't see, yeah, they don't see, they pretty don't see any of it. Right. Because it's just an mutual fund, just like a series mutual fund. So, yeah. And they, they get a small disclosure somewhere that says, you, you paid some, there was some charges. It's like

Sierra:

super fine print under a, a huge paragraph of no, that there's,

Tre:

that is, we've gotten better. Like so now they had to disclose as a few years ago, they had to disclose the commissions. So anybody that, the company that received any commissions that you got a, a statement now at the end of the year that shows that number.

Sierra:

Yeah.

Tre:

Um, but a lot of people think that's the only number and they don't realize that it's probably at least double that. Oh my goodness.'cause people use very expensive stuff and. So, yeah, I think it's good. I think it's good for the industry though, because Oh, for

Sierra:

sure. Because it's good for the people investing.

Tre:

Like Yeah, it's, yeah,

Sierra:

man, I'm not gonna lie, I'm very glad, like, okay, because I know you, I'm like so grateful that I have you because how do you like know all this stuff about the industry and how

Tre:

you never would, right. And that's, I guess, and that's why I get, it's like,

Sierra:

but to find it out later, you would be so, yeah. Like I would be so upset.

Tre:

Yes. And that's why I, I know I, I rub a lot of other advisors the wrong way, um, because I hold this industry to such a higher, a much higher standard than I, I think it's very reasonable, but I, I hold it to a much higher standard than it is.

Sierra:

Yeah. Like, than the actual standard is set. The actual

Tre:

standard. Yeah. And I think that my standard should be the minimum standard, and I know that's like, it would mean a lot of people wouldn't be able to be in the industry, et cetera. I think it's cra like we, we see it on the news all the time. Like there was, I read somewhere that somebody was barred from the industry for stealing money from a client and like, oh yes, I heard that. It's like this type of, and I'm just like, how? Like what in, I think that guy should go to jail for life. Like it's you, you're telling me this, you have your client's trust. So it's because it's a very, it's a very specific type of relationship between you and you and clients, right? It's like clients that you work with for 20 years, 30 years plus years. Right. And it's like, so you take, you take that trust and like basically screw them. Yeah. And you're just like, how could you go to sleep at night? How could you genu? Like what do you,

Sierra:

and it's like, aren't you making enough money? I don't know. Like, I guess if, well it

Tre:

depends on how they, there's plenty of people, plenty of advisors that are broke that Yeah. End up declaring bankruptcy and also like, it's crazy. That is crazy. And that's why I think it's, it should be. And I mean, it should be an open conversation between like, if clients wanted to know exactly the way I was invested, I'd show them the way I'm invested. I do all the time.

Sierra:

Yeah. They

Tre:

wanna see exactly the way I manage my cashflow. I show it to them, they wanna see my will, I show it to them. Right. Like it's the, the trust has to go both ways and I've got nothing to hide. And it is a little unfair because I view money so differently. So I don't, there's no, like, I don't have emotion shame around or emotional ties to it or anything. But I couldn't imagine working with an advisor and then finding out that they're going through bankruptcy. Yeah. Or they're like struggling, et cetera. Be, and you're like, who? So this person is the one I'm trusting to help me? Or I guess it would

Sierra:

be, I guess like I'm thinking of other industries. Like if you were going to a personal trainer and you're like, I need to learn how to like. I wanna be a, an athlete, like I want to train to be an athlete and you go and meet this personnel trainer and they're like super overweight, like sick, you know what I mean? Like can barely walk. And you're like, would you hire that personnel trainer? No, because you're, but you can see that

Tre:

and it's very different if you can't see it.

Sierra:

Right? Yeah. Like if,

Tre:

or, or even in that case I could see if they had a reputation. But again, the reputation's like open and like this trainer also trained LeBron James. Yeah, yeah, for sure. You know, for the last 20 years. And yeah. Then I'm gonna trust the trainer that's now, he earned his, he earned it. He did it in the past. He earned it. He can do that now. Yeah, but you don't have that same thing with personal finance, right? Like you, yeah. So you

Sierra:

can't see their, you

Tre:

can't see that. You can't

Sierra:

statements and, and all

Tre:

You go on a lot of people, all you go on is like a referral. Well, again, you can't see that. It's nothing that you can.

Sierra:

Again, that ties it back to the like trusting people's advice and they have good motive, but it might not be the right decision because yeah, you might be like, oh, my mom worked with this advisor and like, I love my mom, and my mom's referred me to this person, so I trust my mom. It's like, yes, but maybe that's not the right person for you or whatever. Like you just don't have all the information. I guess if your

Tre:

mom was like a. Insider, like also an advisor and they refer you to somebody that they, then I would say, okay.

Sierra:

Yeah.

Tre:

You know, they, if they genuinely, like, same if your dad was LeBron and your LeBron was like, Hey, go to this personal trainer. It's like, okay. I, I could, yeah, yeah, I could get that. But that means they have a, a deeper knowledge, right. Of the industry. Anyway. We are way off track. Yeah.

Sierra:

Sorry. Yeah, let's

Tre:

wrap it up. I, yeah, let's wrap it up. I, I think that's everything. Uh, for this one that kind of gave, gave you an idea of that. Again, you're not gonna see any expensive mutual funds or anything like that. Um, or expensive ETFs or anything. We use low, low cost index type mutual funds and ETFs. Um, keep it, keep it simple and over and doing it over a long period of time makes a, it makes a huge difference. I know a lot of people, you see these calculators, like I had one here that I was going to go through, but it's like, hit. Tell, tells you like initial investment into an RSBA regular investment of, I looked back, um, and found, so I've been putting at least$400 biweekly into investments, uh, since I was earning$50,000 a year. Wow. Which is cr I I was very, actually, very surprised. Uh, were

Sierra:

you proud of yourself? Yeah.

Tre:

I was like, heck yeah. Yeah. Good for you. Heck yeah. I was like, like, that's not much income to, to be putting that, that's a lot of, that's a big chunk of that

Sierra:

is a big chunk for 50. Big chunk. Yeah, a

Tre:

hundred percent. Um, but I was doing it like, did the, did the calculator from, if you did that from 25 years old, versus starting at, 35 years old.

Sierra:

Mm-hmm.

Tre:

So the calendar, I want the calculator I want to show you. So somebody starting with$10,000, uh, person one puts in$800 from the age of, um, every single month starting at the age of 25 and ending when they're 50. Uh, so 25 years of investing, they end up with a balance of$709,000.

Sierra:

Mm-hmm.

Tre:

The individual second individual starts at 35 years old and doubles that amount, but it's in$1,600 a month. Yeah. What do you think they end up with? Uh,

Sierra:

I wanna say like. Five or 600.

Tre:

$540,000. Yeah. In order to catch up, they would have to invest, about$2,100 a month

Sierra:

Wow.

Tre:

To catch up. And it still doesn't quite catch up. 21, 50, 50 a month-ish. Yeah.

Sierra:

Wow.

Tre:

To catch up. It just tells you the importance of time and why when I, when I'm talking about it, I'm like, just make no excuse. Just like I did, like we did just start. Right. It's like it, we could stop investing now and it would take, like, people always talk about, okay, I made these bad mistakes. How do I catch up? You can't, there is no catching up. It sounds sucky, but it's true. You, you can't catch up. Yeah. But what you can do is do the best that you can to make sure going forwards, you don't put yourself further and further and further behind.

Sierra:

Yeah. Like the, the whole thing of like. The best day to start was yesterday. The second best is today. Like, yeah, you just have to start. You just have to start. That's why you're always on. Uh, I'm not, I don't wanna call it my family, but I have a lot of like younger family members that we're pretty close to, and like, they're not all a lot younger than us, or like some of them are around our age and you're like, well, I

Tre:

give them heck for it. You do. Yes. You get

Sierra:

them on their investments. Stop.

Tre:

Because I'm telling like, again, this is, this is like$800 a month, which is a lot for sure. Um, but it, it's true of any amount, right? Like, uh, at$400 a month you have a huge, huge, huge head start. And in order to catch up some, like somebody starting 10 years later would have to put in$1,100. Hmm.$1,100 a month to if by starting later it's like, okay, well you tell me which is harder,$400 or$1,100.

Sierra:

Yeah.

Tre:

Like it's, it gets really difficult to catch up. I

Sierra:

think people think, oh, I'll start investing when I get more income. But what really happens most of the time is they just spend more. Yeah. And then they never have the money to invest. So

Tre:

Exactly. You, yeah. Because you're like,

Sierra:

oh, well I'm finally in this job and now I can have all the things I want now. Yeah. It's, anyway,

Tre:

I sold it. Yeah. It's so difficult. You leave it too late and just get into that habit. You just working longer I guess. Yeah, just start the habit, make sure it's invested properly.'cause I've also met people that it's like, yes, I've saved and that I look and it's just been sitting in a variable RSB for the last 10 years. I met with somebody that did that the other day and it was like his girlfriend or his future wife, uh, his fiance, am I even be married at that point, but was like, Hey dude, what are you doing? He had been investing, saving religiously into his RSB and he had like, I think it was like 70 or$80,000 in this RSB that had just been putting money away into, and it was like,

Sierra:

he thought he was doing something like, and you are

Tre:

doing what? It is better than nothing. But I mean, honestly, I would've rather spent it

Sierra:

Oh, don't say that. Oh,

Tre:

because that buddy is like, I think it took him like 10 years or something like that to, to save it. And it's just like, oh, that'd be worth double probably.

Sierra:

No, don't say that. What if they're listening then? Oh, just brutal. It's gonna, I so upset.

Tre:

Well, I told him, I told him, I'm like, guy, I told him we, you're crushing

Sierra:

spirits

Tre:

from here on out. We're doing it. You're, you're doing it properly. But yeah, it's, it's, yeah, it's lucky. But anyway, uh, that's, that's we'll stop, stop, stop. This episode is dragging on. Okay. Uh, next episode is on our dsbs. So. Um, disability plans. So we will see you in that one.

Sierra:

Bye

Tre:

bye.

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Tré Bynoe CFP®, CIM®

Host
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Sierra Bynoe

Co-host