Latest / Financial Survival Network / Next-Gen Wealth: AI Meets Family Offices - Richard Wilson #6287

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Next-Gen Wealth: AI Meets Family Offices - Richard Wilson #6287 · Financial Survival Network

• 0:00
  Speaker 1: AI is only useful for vertical, super niche use cases
• 0:03
  Speaker 1: like your background is an attorney, and so if a
• 0:07
  Speaker 1: family office came and say, we want you to be
• 0:09
  Speaker 1: a family office fixer for us, Carrie, and take care
• 0:12
  Speaker 1: of all this one hundred and twenty LLCs we have
• 0:14
  Speaker 1: and help with this, that and the other thing. AI
• 0:17
  Speaker 1: tools that help you as a family office fixer with
• 0:21
  Speaker 1: an attorney background, and then they're built just for you,
• 0:23
  Speaker 1: or they're built by you for you. That's the ultimate
• 0:26
  Speaker 1: use case of AI.
• 0:27
  Speaker 2: You were listening to Carrie Let's's Financial Survival Network where
• 0:31
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• 0:35
  Speaker 2: to thrive in today's trying times. You need the Financial
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• 0:55
  Speaker 3: And welcome. This is Financial Survival Network. I'm your host,
• 0:59
  Speaker 3: Carrie Leutz. They got really interesting show for you today.
• 1:04
  Speaker 3: There's a world out there called family offices and you
• 1:08
  Speaker 3: may or may not be familiar with them, but what
• 1:11
  Speaker 3: you're probably almost certainly not familiar with is they control
• 1:15
  Speaker 3: fourteen trillion dollars worth of wealth, which is a lot
• 1:20
  Speaker 3: of money and more than a lot of other entities
• 1:25
  Speaker 3: out there that you thought were really powerful. Richard Wilson
• 1:30
  Speaker 3: is with us now. Richard, you have sat across the
• 1:34
  Speaker 3: table from billionaires, sent to millionaires and some of the
• 1:37
  Speaker 3: most powerful allocators in the world. You've hosted three hundred
• 1:42
  Speaker 3: plus events, built a network of seventy five hundred investors,
• 1:47
  Speaker 3: and viewed interviewed over one hundred billionaires. So, first, what
• 1:54
  Speaker 3: is a family office.
• 1:57
  Speaker 1: A family office is simply a solution for how to
• 2:01
  Speaker 1: manage your money when you're ultra wealthy. So if you're
• 2:04
  Speaker 1: worth fifty thousand dollars, you may need to do certain
• 2:07
  Speaker 1: things with your money. If you're worth five million, you
• 2:09
  Speaker 1: need to act a bit differently. If you're worth fifty
• 2:11
  Speaker 1: million or five hundred million. You can imagine that just
• 2:15
  Speaker 1: missing a single letter from a county real estate do
• 2:19
  Speaker 1: or the irs, or one little mistake might cost you
• 2:22
  Speaker 1: more than it would a cost to hire a full
• 2:23
  Speaker 1: time team, just in the penalties, right. And so a
• 2:27
  Speaker 1: family office is there to focus your energy, play defense
• 2:30
  Speaker 1: for you, do planning, holistic thinking, and just manage the
• 2:34
  Speaker 1: money wisely as you grow your wealth.
• 2:36
  Speaker 3: And we answer you are there tax advantages to a
• 2:40
  Speaker 3: family office.
• 2:41
  Speaker 4: Yes, there are.
• 2:42
  Speaker 1: I mean, if you structure a family office correctly, then
• 2:46
  Speaker 1: there are ways to write off typically the activities of
• 2:51
  Speaker 1: the family office, which may involve family members meeting to
• 2:54
  Speaker 1: look at investments, family get togethers to plan out what
• 2:59
  Speaker 1: you should do with the balance, cheap next, et cetera.
• 3:01
  Speaker 1: But more important than that is that when you professionalize
• 3:04
  Speaker 1: your family office, you get in touch with family office quality,
• 3:07
  Speaker 1: trust in the state, and tax planning professionals, and you
• 3:10
  Speaker 1: have people doing the things you shouldn't be doing as
• 3:13
  Speaker 1: the wealth creator. Anyways, to free up your time to
• 3:16
  Speaker 1: actually get tax planning in place and play offense on
• 3:19
  Speaker 1: your balance sheets. That's the real benefit of having it
• 3:22
  Speaker 1: in place.
• 3:23
  Speaker 3: Now, do they get carried interest although that's supposedly going
• 3:27
  Speaker 3: to be eliminated. Can they get carried interest treatment on
• 3:30
  Speaker 3: their taxes?
• 3:32
  Speaker 1: They're treated the same as as other investors, quote unquote.
• 3:35
  Speaker 1: Is just that the most complex, sophisticated structures on planet
• 3:41
  Speaker 1: Earth can be afforded by this group. So if there
• 3:46
  Speaker 1: is a way to plan around some types of taxation,
• 3:49
  Speaker 1: you can bet that a percentage of the family office
• 3:51
  Speaker 1: industry is playing that game. But to be honest, a
• 3:54
  Speaker 1: lot of family offices are just super founders. They're just
• 3:56
  Speaker 1: super entrepreneurs that makes seven, eight nine figures a year
• 4:00
  Speaker 1: or had an exit at that size. And so now
• 4:03
  Speaker 1: they look around and say, oh, what's this family office thing?
• 4:06
  Speaker 1: You know, Oh, maybe I need one of those, So
• 4:07
  Speaker 1: maybe I already have part of one put together.
• 4:10
  Speaker 4: How do I formalize this?
• 4:11
  Speaker 1: And then there's just a full spectrum of types of
• 4:13
  Speaker 1: family offices out there.
• 4:15
  Speaker 3: How did this industry emerge?
• 4:20
  Speaker 1: Well, folklore says that hundreds and hundreds of years ago,
• 4:23
  Speaker 1: people had their kingdoms and build castles around it, and
• 4:26
  Speaker 1: people to protect their wealth and manage it. I mean,
• 4:29
  Speaker 1: who knows, like right, and then you know Rock the
• 4:31
  Speaker 1: Feller and those types had quasi family offices.
• 4:35
  Speaker 4: The reality is that the term started.
• 4:36
  Speaker 1: Being used in the sixties, seventies, and eighties more often.
• 4:41
  Speaker 1: When I started this in two thousand and six two
• 4:43
  Speaker 1: thousand and seven, people told me I was wasting my
• 4:45
  Speaker 1: time and that the family office thing isn't real. And now,
• 4:48
  Speaker 1: as you mentioned, they manage fourteen trillion dollars more than
• 4:51
  Speaker 1: all of venture capital and private equity combined. So you know,
• 4:56
  Speaker 1: it really started by people realizing they need a higher level,
• 4:59
  Speaker 1: more holistic, more medium to long term solution than a
• 5:04
  Speaker 1: regular high net worth person who's just mass affluent. So
• 5:08
  Speaker 1: that's what's really driven the need.
• 5:11
  Speaker 3: So is there a particular area their investments are focused in?
• 5:18
  Speaker 3: Is it mostly real estate? To stocks, bonds? Where are
• 5:22
  Speaker 3: they putting their money?
• 5:24
  Speaker 4: Yeah, really good question.
• 5:25
  Speaker 1: So here at Family Office Club we're often, you know,
• 5:28
  Speaker 1: talking about that on stage at our events and surveying
• 5:30
  Speaker 1: our investors. And what's interesting is that when somebody has
• 5:34
  Speaker 1: created their wealth in an industry, they might not want
• 5:37
  Speaker 1: to go back into dentistry after selling twenty dental practices,
• 5:40
  Speaker 1: So they might not want to go back into owning
• 5:41
  Speaker 1: an auto dealership again or whatever that niche is, but
• 5:44
  Speaker 1: there's so much expertise there. They typically play offense in
• 5:48
  Speaker 1: the space they made their money in, or in one
• 5:52
  Speaker 1: or two new niches, and they choose those niches very
• 5:55
  Speaker 1: carefully and do a medium to long term focus there,
• 5:58
  Speaker 1: and naturally they play offense. And typically then they have
• 6:02
  Speaker 1: a second part of their portfolio, which is where they
• 6:04
  Speaker 1: invest in real estate. Almost everybody wants hard asset's like
• 6:06
  Speaker 1: real estate, no matter what where they made their money.
• 6:08
  Speaker 1: They sleep at night knowing they have cash flowing in
• 6:11
  Speaker 1: real estate in their portfolio. And it is about every
• 6:13
  Speaker 1: family office has public market investments, and that's where it's
• 6:16
  Speaker 1: like almost pure defense. You know, some people are aggressive
• 6:18
  Speaker 1: in the market and you'll say, hey, I like cost Go,
• 6:20
  Speaker 1: or I like Amazon or.
• 6:22
  Speaker 4: Tesla or not, etc.
• 6:23
  Speaker 1: Right, but they're mostly outsourcing the stock market investments, and
• 6:27
  Speaker 1: it's almost pure defense. On real estate, they're mostly outsourcing
• 6:30
  Speaker 1: unless it's right in their backyard or it's where they
• 6:33
  Speaker 1: want to play some offense. But in the offensive area,
• 6:35
  Speaker 1: it's usually where.
• 6:36
  Speaker 4: They made their money or in a niche they're really
• 6:38
  Speaker 4: dedicated to.
• 6:39
  Speaker 3: Got it and the yea. So it sounds fascinating that
• 6:47
  Speaker 3: there's all this money there and it's evolved over time
• 6:50
  Speaker 3: and now it's really a legitimate investment sector, if you will,
• 6:55
  Speaker 3: of the economy. And what kind of returns do these
• 7:00
  Speaker 3: family offices look for it? Are they just defensive or
• 7:04
  Speaker 3: are they going for big returns?
• 7:08
  Speaker 1: You know, the most common statement in the family office industry,
• 7:10
  Speaker 1: which is not helpful at all, but you'll hear at
• 7:13
  Speaker 1: every conference, is if you've met one family office, you've
• 7:16
  Speaker 1: met one family office, and they're all different. But that
• 7:19
  Speaker 1: doesn't help listeners at all. Right, it's kind of like
• 7:21
  Speaker 1: a non answer. And so what I like to think
• 7:23
  Speaker 1: about it when you look at the family office space
• 7:25
  Speaker 1: and you're wondering what returns they like, I think about
• 7:27
  Speaker 1: it like looking at the animal kingdom and you look
• 7:29
  Speaker 1: at the genus and species and you look at birds,
• 7:32
  Speaker 1: you know they're going to act like each other. Spiders
• 7:35
  Speaker 1: act like each other, different types of snakes act like
• 7:37
  Speaker 1: each other. And so when you look at a first
• 7:41
  Speaker 1: generation family office that made their money in Silicon Valley
• 7:45
  Speaker 1: or Crypto, they're going to act very different than a
• 7:48
  Speaker 1: first generation eighty four year old who made the money
• 7:51
  Speaker 1: in manufacturing, right, And so what you need to do
• 7:54
  Speaker 1: is just classify family offices into like is this first gen,
• 7:57
  Speaker 1: early second gen, third generation one health, is this new
• 8:01
  Speaker 1: wealth that made the money by taking big risk, or
• 8:04
  Speaker 1: is this conservative wealth for some reason? And that really
• 8:07
  Speaker 1: narrows down how you work with the families and what
• 8:08
  Speaker 1: they're looking for, because those spectrum ranges right for big
• 8:11
  Speaker 1: families for their diversified investments, many of them are just
• 8:16
  Speaker 1: looking for you know, eight to twelve percent a year returns.
• 8:20
  Speaker 1: They would love to have ten twelve percent a year
• 8:22
  Speaker 1: blended over their entire portfolio. But where they play offense,
• 8:26
  Speaker 1: they want to have amazing returns long term, and I
• 8:28
  Speaker 1: expect a lot, you know, where they're playing peer defense,
• 8:31
  Speaker 1: you know, they generally want to more than trap real inflation,
• 8:35
  Speaker 1: not with the government states is inflation and be wise
• 8:38
  Speaker 1: about that.
• 8:39
  Speaker 3: All right, So you mentioned crypto, I'm sure that's an
• 8:45
  Speaker 3: area that more and more family offices are getting into.
• 8:49
  Speaker 4: Yeah.
• 8:51
  Speaker 1: Literally, in twenty eleven, twelve thirteen, we had eighteen to
• 8:55
  Speaker 1: twenty two year old kids sponsoring my events, as you
• 8:59
  Speaker 1: mentioned in the end, have done three hundred investor club
• 9:01
  Speaker 1: events now and last week we had four hundred people
• 9:05
  Speaker 1: at our event, and the crypto kids would literally get
• 9:10
  Speaker 1: laughed at on the stage by the gray haired real
• 9:13
  Speaker 1: estate people in the audience. And it was probably one
• 9:16
  Speaker 1: of the most rude dynamics I've seen, honestly in eighteen
• 9:19
  Speaker 1: years doing this, Like literally would laugh out loud, being like, ah,
• 9:22
  Speaker 1: new currency, get out of here.
• 9:23
  Speaker 4: Who is this dumb kid? You know who invited this guy?
• 9:26
  Speaker 1: Those people don't need to speak at my events anymore, right,
• 9:29
  Speaker 1: They're worth hundreds of millions of dollars.
• 9:33
  Speaker 4: So I think what family offices see. That's related to
• 9:35
  Speaker 4: your question.
• 9:36
  Speaker 1: Is they see these waves rolling in You know, I'm
• 9:39
  Speaker 1: based in Hawaii, and they see these sets of waves,
• 9:41
  Speaker 1: and whether it's sports betting getting approved in many states, cannabis, crypto,
• 9:47
  Speaker 1: some other trend. It may be against or not against
• 9:50
  Speaker 1: your morals to invest in something like cannabis, and you
• 9:53
  Speaker 1: may think AI or crypto is evil or awesome, etc.
• 9:56
  Speaker 1: But they noticed these waves over time, so they lean
• 9:59
  Speaker 1: forward and say, Okay, I missed another wave. Maybe maybe
• 10:02
  Speaker 1: I should lean into the next one, or just put
• 10:04
  Speaker 1: one percent to work in it early on, you know.
• 10:07
  Speaker 3: So and now crypto is obviously being integrated into the
• 10:11
  Speaker 3: financial system ETFs. Every brokerage house is looking at them.
• 10:16
  Speaker 3: I don't know about the others, but certainly bitcoin. I
• 10:18
  Speaker 3: was just at the bitcoin conference in Las Vegas.
• 10:22
  Speaker 4: Yeah, yeah, I had some friends there.
• 10:25
  Speaker 3: A lot of money there. I mean, I know people,
• 10:28
  Speaker 3: guy who it was five dollars said buy it and
• 10:33
  Speaker 3: or actually it was ten. It had gone up from
• 10:36
  Speaker 3: five to ten, and I said, yeah, wait till it
• 10:39
  Speaker 3: goes down to seven. Well, you know, of course I
• 10:41
  Speaker 3: never bought it, but I did buy it later. But yeah,
• 10:46
  Speaker 3: you know.
• 10:47
  Speaker 4: That's awesome.
• 10:47
  Speaker 1: I mean you to answer your question more directly, though,
• 10:50
  Speaker 1: family offices are in crypto largely.
• 10:53
  Speaker 4: A lot of them have one to four percent of
• 10:55
  Speaker 4: their net worth there.
• 10:56
  Speaker 1: A lot of them like me, might have small bets
• 10:59
  Speaker 1: and twenty or fifty different crypto coins, but then have
• 11:04
  Speaker 1: the majority in Bitcoin and then probably ethereum as the
• 11:08
  Speaker 1: number two.
• 11:10
  Speaker 4: Asset out of the crypto world.
• 11:11
  Speaker 1: I think many less have any exposure to NFTs, but
• 11:16
  Speaker 1: a lot of them do have investments in crypto. Just
• 11:19
  Speaker 1: to make sure I answer your question directly.
• 11:21
  Speaker 3: Right, So, obviously that's an emerging area. Are there any
• 11:26
  Speaker 3: other areas that you see? What about AI and such?
• 11:30
  Speaker 3: Are they getting heavily involved there?
• 11:32
  Speaker 4: Yeah, they are getting heavily involved.
• 11:34
  Speaker 1: I mean some of them invested a decade ago into
• 11:38
  Speaker 1: different AI companies, But robotics is something that they see
• 11:43
  Speaker 1: as completely inevitable and exciting, and there's only so many
• 11:49
  Speaker 1: robotics plays that are obvious right now, so investors are
• 11:52
  Speaker 1: really leaning forward on robotics. They see that sometimes it's
• 11:55
  Speaker 1: more tangible. I mean there's only there's seventy five thousand
• 11:59
  Speaker 1: AI companies out there, so figuring out which ones are
• 12:02
  Speaker 1: going to win, it's like a little bit difficult, right,
• 12:04
  Speaker 1: But robotics companies that have a lot of traction, there's
• 12:07
  Speaker 1: not seventy five thousand of them out there, and the
• 12:09
  Speaker 1: future robotics, I think is massive. So those are two
• 12:12
  Speaker 1: areas that come up a lot, artificial intelligence and robotics.
• 12:15
  Speaker 1: And we've I've actually spent a lot of this year
• 12:18
  Speaker 1: building out thirty artificial intelligence tools for our Investor Club
• 12:22
  Speaker 1: and we share those at all of our events. So
• 12:24
  Speaker 1: we're always talking about AI as a community.
• 12:27
  Speaker 3: Yeah. Well, I'm not surprised the you know, some of
• 12:30
  Speaker 3: the most sophisticated investors in the world. Of course they're
• 12:34
  Speaker 3: going to be looking at these latest trends. Uh. Does
• 12:38
  Speaker 3: AI have any effect as far as what you're doing?
• 12:42
  Speaker 4: Yeah, it does for sure.
• 12:44
  Speaker 1: One of them is that we have found that due
• 12:47
  Speaker 1: diligence goes faster, and it's really emphasized that meeting in
• 12:52
  Speaker 1: person is super critical with AI. You can fake anything
• 12:55
  Speaker 1: on a video. I could be an avatar right now
• 12:57
  Speaker 1: and I didn't even show up for this podcast, and
• 12:59
  Speaker 1: you know, so you can't believe a due diligence room,
• 13:02
  Speaker 1: you can't believe a video. And when we had a
• 13:05
  Speaker 1: Sentimentliennaire on stage last week, he really emphasized that when
• 13:08
  Speaker 1: he invests money, he's investing in the character of you.
• 13:12
  Speaker 1: He's investing in your values, your intellect, and him trusting you.
• 13:16
  Speaker 1: And if he doesn't want to give you a hug
• 13:18
  Speaker 1: or spend time having dinner with you, or invite you
• 13:21
  Speaker 1: over to his house and doesn't really trust you and
• 13:24
  Speaker 1: like you at that level, he doesn't care what your
• 13:26
  Speaker 1: one pager says, your IRR is, or your what your
• 13:29
  Speaker 1: payback equity multiple will be, or how profitable your company is.
• 13:33
  Speaker 4: He doesn't trust you.
• 13:34
  Speaker 1: None of that matters at all, because anybody can print
• 13:36
  Speaker 1: out a piece of paper that says amazing things. And
• 13:39
  Speaker 1: so I think that's really getting emphasized with AI, like
• 13:42
  Speaker 1: meeting important in persons even more important now.
• 13:44
  Speaker 3: Yeah yeah, yeah. So it's interesting that the exact opposite
• 13:51
  Speaker 3: has has occurred, right, you know, Now they're looking for
• 13:55
  Speaker 3: real physical contact, whereas before a zoom call might have
• 13:59
  Speaker 3: been okay.
• 14:00
  Speaker 4: Right right.
• 14:01
  Speaker 1: But ironically, because of AI tools, every minute of the day,
• 14:06
  Speaker 1: somebody sets up a new campaign to cold email thirty
• 14:09
  Speaker 1: thousand people from a throwaway email address and switch up
• 14:13
  Speaker 1: the subject lines and the one line email to get
• 14:15
  Speaker 1: responses to book meetings on the calendar for someone, which
• 14:19
  Speaker 1: makes email responses even lower than they were yesterday because
• 14:23
  Speaker 1: everyone's getting all these cold email blasts all the time
• 14:25
  Speaker 1: from these AI tools that you know are being used NonStop,
• 14:30
  Speaker 1: and so it makes communicating with investors harder and people
• 14:35
  Speaker 1: feel like, oh, yeah, I'm being smart, I need to
• 14:37
  Speaker 1: cold email these ten thousand people, But maybe they'd be
• 14:39
  Speaker 1: better off just meeting with ten people and developing a
• 14:42
  Speaker 1: real relationship than email in ten thousand you know.
• 14:45
  Speaker 3: Yeah, gotcha, gotcha. So so quality over quantity, right.
• 14:51
  Speaker 4: Yeah, for sure.
• 14:52
  Speaker 1: And also it's really changing everything from like if you
• 14:55
  Speaker 1: have a seventy page pitch deck, we gave away a
• 14:57
  Speaker 1: week long trial to a tool today, or happy to
• 15:00
  Speaker 1: give it to your users or listeners for free if
• 15:02
  Speaker 1: you'd want. But it takes a seventy page pitchtack for
• 15:05
  Speaker 1: your essay long email and reduces it down based on
• 15:08
  Speaker 1: one thousand investor talks on stage and also twenty five criteria.
• 15:13
  Speaker 1: So you have one line pitch that summarizes our whole
• 15:16
  Speaker 1: pitchtack based on twenty five criteria in a single sentence.
• 15:19
  Speaker 1: And if you're not doing that, then no one's going
• 15:22
  Speaker 1: to read your essay long email, right, even if it
• 15:24
  Speaker 1: is a personalized email, they just don't have time to
• 15:27
  Speaker 1: read it if they don't know you yet, And that
• 15:29
  Speaker 1: saves time for the investor, it saves time to the
• 15:31
  Speaker 1: person pitching that doesn't have to write an essay now.
• 15:34
  Speaker 1: And then there's also AI tools out there that like
• 15:39
  Speaker 1: one is called Dewey that whip programmed out and we
• 15:42
  Speaker 1: train about one hundred and fifty white papers on due diligence.
• 15:46
  Speaker 1: So you can upload ten pitch decks and say, rank
• 15:49
  Speaker 1: these based on asymmetrical risk, Tell me how experienced the
• 15:53
  Speaker 1: CEO is, Let me know which one is least likely
• 15:56
  Speaker 1: to lose all my money in a worst case scenario,
• 15:59
  Speaker 1: and then make a table of all that so like.
• 16:01
  Speaker 3: Bad, who's the least bad of the bunch?
• 16:06
  Speaker 1: So like that's like a game changer for investors, right,
• 16:09
  Speaker 1: I mean you could you could fire someone that you
• 16:11
  Speaker 1: hired full time just to screen deals and just use
• 16:13
  Speaker 1: AI nowadays. And I think that's that's the number one
• 16:16
  Speaker 1: thing that came up at our event last week. That's
• 16:17
  Speaker 1: not answered. What is a solution to thirty percent of
• 16:21
  Speaker 1: white collar jobs being gone in eighteen months?
• 16:24
  Speaker 3: What's that?
• 16:25
  Speaker 4: How many pushforks are going to come out.
• 16:27
  Speaker 3: That's what I want to know. And of course nobody
• 16:30
  Speaker 3: is able to answer that question, are they.
• 16:33
  Speaker 1: The best answer I've heard is, well, you know what,
• 16:36
  Speaker 1: last time I hired a plumber, it costs more than
• 16:38
  Speaker 1: my attorney. So maybe a couple million people could become
• 16:41
  Speaker 1: electricians and HVAC fixers and plumbers and tradesmen, and maybe
• 16:45
  Speaker 1: every high school career counselor shouldn't be beating the college
• 16:50
  Speaker 1: drum and going three hundred thousand in debt to get
• 16:53
  Speaker 1: a history degree, you know, like that's the that's the
• 16:56
  Speaker 1: only good answer I've heard lately.
• 16:58
  Speaker 3: Yeah, well, like kind of agree with that, you know,
• 17:01
  Speaker 3: I think, but how many plumbers do we need? And
• 17:06
  Speaker 3: how many electricians and handing them right?
• 17:10
  Speaker 4: Right?
• 17:10
  Speaker 1: We need more, probably twice as many as we need now.
• 17:13
  Speaker 1: But what about the rest of people. We don't have
• 17:15
  Speaker 1: an answer for the rest of that. And if there's
• 17:16
  Speaker 1: a way to solve it, you know, we're going to
• 17:19
  Speaker 1: have to come up with the answers, and the politicians
• 17:21
  Speaker 1: are going to be flat footed on how to answer
• 17:23
  Speaker 1: all those angry, upset people, which you know, may maybe
• 17:26
  Speaker 1: they should be upset, right, they got displaced by AI
• 17:28
  Speaker 1: and it's going to feel unfair. And I don't think
• 17:31
  Speaker 1: that's being talked about enough. I think it's like, besides
• 17:34
  Speaker 1: the fact that our country is going bankrupt with debt,
• 17:36
  Speaker 1: I think that all those people getting their pitchforks out
• 17:39
  Speaker 1: in eighteen months from now is not going to be pretty.
• 17:41
  Speaker 3: So we're talking, well, we're kind of drifting off what
• 17:44
  Speaker 3: you do. But I'm really curious because I think about this,
• 17:47
  Speaker 3: You're thinking about it more and more people are thinking
• 17:50
  Speaker 3: about it every day. You need to think about it
• 17:55
  Speaker 3: like we already know, like guys like loan underwriters, insurance
• 18:01
  Speaker 3: company underwriters, and loan processors for mortgage companies, basically those
• 18:09
  Speaker 3: that job market's going to cease to exist right right right.
• 18:12
  Speaker 1: Call centers right and you have a thousand people in
• 18:14
  Speaker 1: a call center. Well, now you just train one agent
• 18:17
  Speaker 1: and it answers instantly. Never isn't a bad mood, never
• 18:20
  Speaker 1: remembers the wrong information, always cheerful, never asked for a raise,
• 18:24
  Speaker 1: and it gets smarter every day, and.
• 18:26
  Speaker 3: Wealthy breaks and they're never sick, and all that.
• 18:31
  Speaker 4: Good stuffinantly scalable.
• 18:32
  Speaker 1: Yeah, there's there's there's so many good things that'll come
• 18:35
  Speaker 1: with AI and it's so exciting. And you know, when
• 18:37
  Speaker 1: COVID hit, we had to go that year from thirty
• 18:40
  Speaker 1: live events to zero and for ten days. You know,
• 18:43
  Speaker 1: freaked me out a little bit that we had to
• 18:45
  Speaker 1: do that, But I realized the faster we pivot into
• 18:47
  Speaker 1: being virtual, the better our events go. And I see
• 18:51
  Speaker 1: that same with AI. The faster I pivot into AI
• 18:53
  Speaker 1: and go super deep I'm using artificial intelligence, the better
• 18:56
  Speaker 1: it is for our business. And it's very exciting, but
• 18:59
  Speaker 1: how to be compact about how do we help the
• 19:02
  Speaker 1: ten million people that will be displaced really soon? And
• 19:05
  Speaker 1: maybe there's a business way to do so, so it's
• 19:07
  Speaker 1: not a nonprofit that may or may not be wasteful, right,
• 19:10
  Speaker 1: I mean I try to think about that a little bit.
• 19:12
  Speaker 3: It's worse than ten million. Because we'll also talk in
• 19:16
  Speaker 3: full self driving, all right. I've had a Tesla for
• 19:19
  Speaker 3: a lot of years already, and the full self driving
• 19:22
  Speaker 3: went from a nice feature to just keeping another set
• 19:27
  Speaker 3: of eyes on the road to replacing you. I mean,
• 19:30
  Speaker 3: it's that to that point. I mean, I really don't
• 19:33
  Speaker 3: drive my car most of the time, it drives me.
• 19:36
  Speaker 3: I went from being the driver to being a passenger
• 19:40
  Speaker 3: in my own car. The only thing I do is
• 19:42
  Speaker 3: tell her where to go, and pretty soon I think
• 19:44
  Speaker 3: it's going to be telling me where to go. And
• 19:48
  Speaker 3: the largest you know, Richard, the largest job segment in
• 19:53
  Speaker 3: the country right now is driver at all levels, truck drivers,
• 19:58
  Speaker 3: armored car drivers, taxi stupors driver. That segment's going to disappear.
• 20:07
  Speaker 3: Maybe not in eighteen months, maybe, but I would wager
• 20:11
  Speaker 3: within thirty six months it will be gone.
• 20:15
  Speaker 1: I this is this copic is directly tied to cryptocurrency,
• 20:20
  Speaker 1: directly tied to seeing the sets of waves coming in
• 20:23
  Speaker 1: because Peter Thiel says, the way you predict the future
• 20:26
  Speaker 1: is you find something you're high conviction on that nobody
• 20:28
  Speaker 1: else sees yet, and you go really hard on that
• 20:31
  Speaker 1: when everyone else thinks that the market doesn't exist, or
• 20:34
  Speaker 1: you don't know what you're doing, or it doesn't make sense. Uh,
• 20:37
  Speaker 1: and no one has an answer to you know what
• 20:40
  Speaker 1: we're going to do about replacing everybody?
• 20:42
  Speaker 3: You know, I'll give you another one, all right. I
• 20:46
  Speaker 3: call it the Trump GPT. Yeah, the whole strategy of
• 20:51
  Speaker 3: Trump coming into office was executed, set up, and executed
• 20:56
  Speaker 3: by AI. It's not a question in my mind. I
• 20:59
  Speaker 3: can see the waves. You know, you use it a
• 21:01
  Speaker 3: lot obviously, as I thought, and I see the waves there.
• 21:05
  Speaker 3: There's just certain phrases, all those executive orders being ready
• 21:09
  Speaker 3: to drop. It's even gone to the point where the
• 21:12
  Speaker 3: litigation strategy of his opponents was game planned and prepared
• 21:17
  Speaker 3: for ahead of time, almost to the point where the
• 21:20
  Speaker 3: documents were drafted and all the legal hot points and
• 21:24
  Speaker 3: the hot areas, all of this was anticipated. Same thing
• 21:28
  Speaker 3: with the trade negotiations. Wrote an article about that. It
• 21:32
  Speaker 3: used to be once upon a time the diplomats sat
• 21:35
  Speaker 3: down and they hashed out an agreement, and it took
• 21:39
  Speaker 3: forever because they were busy globe trotting to you know,
• 21:44
  Speaker 3: five star resorts and Michelin rated restaurants and downing the
• 21:48
  Speaker 3: religious quantities of Champagne and Bordeaux. But all that's changed
• 21:53
  Speaker 3: now those agreements can be banged out in a matter
• 21:57
  Speaker 3: of weeks. Understanding this except you and I, Richard.
• 22:03
  Speaker 4: Yeah, I mean it's interesting.
• 22:04
  Speaker 1: I think there's there's people that think AI is evil
• 22:08
  Speaker 1: and don't use it at all.
• 22:09
  Speaker 4: There is a large barbell.
• 22:10
  Speaker 1: Of people who use GPT, almost like Google or the
• 22:13
  Speaker 1: Little cup recipes or just look at individual little searches,
• 22:17
  Speaker 1: and then Sam Altman says, at the other end of
• 22:20
  Speaker 1: the barbell are the really big power users, and those
• 22:23
  Speaker 1: people are doing so many deep research things per day
• 22:28
  Speaker 1: that the thing that's limiting them is they're time to
• 22:30
  Speaker 1: read through the results of the deep research and then
• 22:34
  Speaker 1: put that to use. You know, that's where people are
• 22:38
  Speaker 1: at right now. Right you have to ask yourself what
• 22:40
  Speaker 1: side of the barbell are you on, and that's going
• 22:42
  Speaker 1: to determine if AI is good for you or not.
• 22:43
  Speaker 3: I think, yeah, well, I think it's unescapable and unavoidable
• 22:49
  Speaker 3: where we're heading here, because the genie is out of
• 22:53
  Speaker 3: the toothpaste tube here for sure.
• 22:56
  Speaker 1: I mean you can either like complain about the new
• 22:58
  Speaker 1: reality or adjust to it and be nimble and angile
• 23:01
  Speaker 1: and make it good for you and your family.
• 23:03
  Speaker 4: I mean, that's the only two options I see.
• 23:05
  Speaker 3: You know, yeah, and it's really it and it's not
• 23:09
  Speaker 3: like you particularly need any training. Like for a while,
• 23:13
  Speaker 3: prompt engineer was a hot topic, but as you work
• 23:17
  Speaker 3: with it, you know, it adapts to you and you
• 23:21
  Speaker 3: adapt to it. And then the question is like, how
• 23:24
  Speaker 3: soon before it becomes self aware?
• 23:27
  Speaker 2: Is it?
• 23:27
  Speaker 3: Alrighty aware? A lot of people out there, and I
• 23:31
  Speaker 3: have to include myself as one of them. Think that
• 23:35
  Speaker 3: there's something more here than just chips and code.
• 23:39
  Speaker 4: Right right, I mean, so what are you?
• 23:40
  Speaker 1: It's already more self aware than some human beings I
• 23:42
  Speaker 1: interact with.
• 23:44
  Speaker 4: But like, I think that I think one.
• 23:46
  Speaker 5: Thing that I want to use that Yeah, I did
• 23:51
  Speaker 5: see another quote that said that AI actually hallucinate slightly
• 23:55
  Speaker 5: less than human beings, but just in you know, less
• 23:58
  Speaker 5: predictable ways.
• 24:00
  Speaker 1: You know, you can imagine how a human being is
• 24:01
  Speaker 1: going to hallucinate about how big a fish they caught,
• 24:04
  Speaker 1: or you know, how much, how much whatever costs, et cetera.
• 24:07
  Speaker 1: But I think, like what's most important here is just
• 24:09
  Speaker 1: to think about where the.
• 24:12
  Speaker 4: Future is going, position ahead of it, and too.
• 24:15
  Speaker 1: You know, the best investments are the ones that are
• 24:19
  Speaker 1: not what everyone is thinking, you know. It's it's things
• 24:22
  Speaker 1: that other people think is a bad investment or I
• 24:24
  Speaker 1: think is toxic. If you follow the herd, you're going
• 24:26
  Speaker 1: to be at vest average and probably a little bit
• 24:29
  Speaker 1: behind average. Right, So you do not want to sell
• 24:31
  Speaker 1: after everyone sold. You don't want to invest and be
• 24:34
  Speaker 1: the last person who invested before it came down. So
• 24:38
  Speaker 1: the other thing is that we talked about this last
• 24:40
  Speaker 1: week at our event, is that AI is only useful
• 24:42
  Speaker 1: for vertical, super niche use cases like your background as
• 24:46
  Speaker 1: an attorney. And so if a family office came and say,
• 24:50
  Speaker 1: we want you to be a family office fixer for us,
• 24:52
  Speaker 1: carry and take care of all this one hundred and
• 24:55
  Speaker 1: twenty ollcs we have and help with this, that and
• 24:57
  Speaker 1: the other thing. AI tools that help you as a
• 25:01
  Speaker 1: family office fixer with an attorney background, and they're built
• 25:04
  Speaker 1: just for you, or they're built by you for you.
• 25:07
  Speaker 1: That's the ultimate use case of AI, Like it's only
• 25:09
  Speaker 1: so useful to have a generic model so you can
• 25:12
  Speaker 1: ask questions. And the GPT model is fed by Wikipedia,
• 25:16
  Speaker 1: everything on Google and three hundred million now eight hundred
• 25:19
  Speaker 1: million monthly users. So do you want answers from eight
• 25:22
  Speaker 1: hundred million random users or do you want answers from
• 25:26
  Speaker 1: one hundred other family office attorneys or one thousand investors
• 25:29
  Speaker 1: who have spoken on stage at our events. The answers
• 25:32
  Speaker 1: will be completely different than what Wikipedia tells you.
• 25:34
  Speaker 3: You know, yeah, well we don't even get me started
• 25:38
  Speaker 3: on Wikipedia. I'm waiting for my entry fourteen years, you know, right.
• 25:43
  Speaker 3: We're podcasts and anybody else out there, but I'm not
• 25:47
  Speaker 3: noteworthy for whatever reason. But another thing you just mentioned, okay,
• 25:52
  Speaker 3: being a recovering attorney, in fact, being America's top recovering attorney. Yeah,
• 25:57
  Speaker 3: I could tell you that eighty percent of the lawyers
• 26:01
  Speaker 3: out there, there's no purpose for them being out there,
• 26:06
  Speaker 3: but they haven't figured it out yet. I'll just tell
• 26:08
  Speaker 3: you brief personal example. I had a friend and in Florida,
• 26:14
  Speaker 3: that's where I live. She wanted to amend her will,
• 26:17
  Speaker 3: her trust, quit claim her condo to the trust, healthcare proxy,
• 26:26
  Speaker 3: and hip a waiver. All right, that's something like being
• 26:33
  Speaker 3: an attorney. I was connected. I paid one thousand bucks
• 26:37
  Speaker 3: five years ago. It's probably still okay. But they wanted
• 26:41
  Speaker 3: like thirty five hundred to forty five hundred dollars from her,
• 26:45
  Speaker 3: and not a lot of money. But it's not wealthy,
• 26:49
  Speaker 3: and that's all right. I said, all right, Rose, come over,
• 26:53
  Speaker 3: let me take a look at it. So I scan
• 26:56
  Speaker 3: all the documents in And that's thing that most people
• 27:00
  Speaker 3: don't know is that the ais read the image as
• 27:04
  Speaker 3: if you were reading it right. I said, make me
• 27:09
  Speaker 3: a condicil to the will.
• 27:11
  Speaker 4: Boom.
• 27:13
  Speaker 3: Fifteen minutes had to tweak it a little bit. It
• 27:15
  Speaker 3: didn't do everything perfect. Said, Okay, you know, let's have
• 27:20
  Speaker 3: an amendment to her trust. Boom done, and make me
• 27:24
  Speaker 3: a quick claim deed. Boom done. I put in the
• 27:28
  Speaker 3: legal description. I checked that, and then the other things
• 27:32
  Speaker 3: that just instantly did them, and I didn't charge her anything.
• 27:37
  Speaker 3: But when I looked at that, and then I've done
• 27:39
  Speaker 3: other things legal related, even though I don't practice anymore. Man, Like,
• 27:46
  Speaker 3: those guys weren't out of the ballpark unreasonable. It's just
• 27:50
  Speaker 3: they're completely unnecessary. Now they should have been doing it
• 27:53
  Speaker 3: themselves and charged. Are five hundred and fifteen minutes worth
• 27:58
  Speaker 3: of work for five hundred bucks is not so bad.
• 28:02
  Speaker 3: You only had to go to like a you know, mailboxes,
• 28:07
  Speaker 3: et cetera, to go get it notarized and witnessed. But
• 28:10
  Speaker 3: outside of that, it's like, what value does the attorney
• 28:14
  Speaker 3: bring to this process anymore?
• 28:16
  Speaker 4: Right? Right? I mean importantly for the listeners.
• 28:20
  Speaker 1: I mean you have a background as an attorney, so
• 28:23
  Speaker 1: it makes more sense for you personally to rely on AI,
• 28:26
  Speaker 1: and then with your attorney brain, you can review it,
• 28:28
  Speaker 1: make sure it's reasonable, make sure you know it's accurate.
• 28:31
  Speaker 1: We had somebody last week that said you should not
• 28:34
  Speaker 1: get tax advice from GPT. And what's interesting when hearing
• 28:37
  Speaker 1: that is his name is John and he's super smart,
• 28:40
  Speaker 1: and I get why he would say that, But at
• 28:41
  Speaker 1: the same time, could your tax advisor missed something? Of
• 28:45
  Speaker 1: course they're human, right, but also imagine you interviewed John,
• 28:49
  Speaker 1: got his book, got his a thousand podcast episodes, and
• 28:53
  Speaker 1: trained a little AI sandbox on everything John has said
• 28:56
  Speaker 1: over a decade. I believe that AI tool because it's
• 28:59
  Speaker 1: all from John's mouth, right. Ni's still could have mistakes,
• 29:01
  Speaker 1: You still should.
• 29:02
  Speaker 4: Have someone review it.
• 29:03
  Speaker 1: But I think those those types of combinations of AI
• 29:06
  Speaker 1: plus human that's where the magic happens, right versus blindly
• 29:10
  Speaker 1: relying upon AI.
• 29:11
  Speaker 3: Well, I'll tell you a little secret here. You know,
• 29:14
  Speaker 3: I'm sure others are out there doing it, no question.
• 29:17
  Speaker 3: The thing called AI stacking, and you take the work
• 29:21
  Speaker 3: product from one AI start with Rock because it's going
• 29:25
  Speaker 3: to produce it faster than anything else out there and
• 29:28
  Speaker 3: getting even faster, and then you throw it over to
• 29:31
  Speaker 3: Chat and then maybe you go to Claude or like
• 29:36
  Speaker 3: there's certain ones that I feel are personally kind of useless,
• 29:40
  Speaker 3: like Gemini or Deep Seek is completely useless because it
• 29:46
  Speaker 3: doesn't it can't even find tumin square on a map. Right,
• 29:51
  Speaker 3: it's you. It's just so constricted, and there's a corporate
• 29:55
  Speaker 3: bloat wear. But there's three or four out there that
• 29:58
  Speaker 3: are first, you know, right, gold standard to me, yeah,
• 30:04
  Speaker 3: is the gold standard. But they've deliberately failed to update
• 30:09
  Speaker 3: from twenty twenty three. Something happened in twenty twenty three.
• 30:13
  Speaker 3: They don't want to go any further. But Grock, it's
• 30:17
  Speaker 3: off the rails. It's just a little too wild West.
• 30:22
  Speaker 1: Yeah, yeah, sometimes the can be I mean, the best
• 30:25
  Speaker 1: legal related thing that we put together that's been super
• 30:28
  Speaker 1: helpful that no attorney could do as a human is
• 30:31
  Speaker 1: that we train it on a thousand deal structures. It's
• 30:33
  Speaker 1: called deal structure ninja. You tell it what you're solving for,
• 30:37
  Speaker 1: what you're negotiating, what could blow up the deal, what
• 30:39
  Speaker 1: you want to prioritize in the deal structure, what the
• 30:41
  Speaker 1: counterparty wants, and then it lists out ten deal structures
• 30:44
  Speaker 1: and you say, I like number two and six, Show
• 30:46
  Speaker 1: me ten more like that. Then it does ten more,
• 30:48
  Speaker 1: ten more, or ten more. Then you say I like
• 30:50
  Speaker 1: number nine. Just add this little component and then it'll
• 30:53
  Speaker 1: ask you if you want it to write the email
• 30:54
  Speaker 1: to the counterparty and the attorney on why it's a
• 30:57
  Speaker 1: win win win deal structure for everybody. How can the
• 31:00
  Speaker 1: attorney do that for you twenty four to seven instantly?
• 31:04
  Speaker 1: Like no attorney knows a thousand deal structures and can
• 31:07
  Speaker 1: knock out ten in five seconds, right, It's.
• 31:09
  Speaker 4: Like it's crazy.
• 31:10
  Speaker 1: So I think that type of stuff is just game changing.
• 31:12
  Speaker 1: It could change somebody's life having the right deal structure,
• 31:15
  Speaker 1: as you know in a deal, right, So I'm excited
• 31:18
  Speaker 1: about stuff like that.
• 31:19
  Speaker 3: Yeah, No, I totally agree with you. It's amazing what
• 31:23
  Speaker 3: it can do.
• 31:24
  Speaker 4: Yeah, and he.
• 31:26
  Speaker 3: Taking enough of your time. Appreciate your coming on. People
• 31:29
  Speaker 3: out there want to connect with you, find out more
• 31:32
  Speaker 3: about you. You've got a podcast, Where do you go?
• 31:35
  Speaker 4: Yeah, so we have a Family Office podcast.
• 31:37
  Speaker 1: But our website for Familyoffice Club, where we have a
• 31:41
  Speaker 1: thousand active investors and we meet sixteen times a year
• 31:44
  Speaker 1: is at Family Offices dot com. And my email is
• 31:49
  Speaker 1: just Richard at Familyoffices dot com.
• 31:52
  Speaker 3: All right, those links are in the show notes this
• 31:54
  Speaker 3: interview on Financial Survival Network dot com. Really appreciate you
• 31:58
  Speaker 3: coming on. It's been educational for me. Maybe I could
• 32:01
  Speaker 3: have found out a lot of this from AI, but
• 32:04
  Speaker 3: better to find out from it from you because you
• 32:08
  Speaker 3: give the human touch to it. The AI is a
• 32:10
  Speaker 3: little a little too sterile.
• 32:13
  Speaker 1: Well maybe maybe I'm an AI bot and you just
• 32:15
  Speaker 1: did hear it from AI.
• 32:16
  Speaker 4: We'll never know, right, so appreciate you having it out here.
• 32:18
  Speaker 3: We'll have a feeling not the case. But thanks for
• 32:21
  Speaker 3: coming on. Hey, you getting questions for Richard myself? Shoot
• 32:24
  Speaker 3: me an email kl at Carrie LUTs dot com.
• 32:27
  Speaker 2: Thanks for listening to Carrie Lets's Financial Survival Network, your
• 32:31
  Speaker 2: solution to today's trying times. For the latest, go to
• 32:35
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,