Latest / The Personal Finance Club Show / Is There an AI Bubble? And What’s Wrong With Jeremy’s Voice? | Ep 13

Transcript

Is There an AI Bubble? And What’s Wrong With Jeremy’s Voice? | Ep 13 · The Personal Finance Club Show

0:00
Is there an AI bubble? Is there an AI bubble?
0:03
Is there an AI bubble? And what's wrong with my voice?
0:06
You're about to find out. Welcome back to the Personal
0:13
Finance Club show. Hey, John.
0:16
Hi, Jeremy, How are you doing? Well, you might be noticing my
0:20
voice sounds like a frog, no? You're it's giving Barry
0:24
Manilow. Oh, good.
0:25
Barry White, Barry. White.
0:26
Barry White, not Barry Manilow. Oh yeah, that's right.
0:31
Very, very man low the maybe the other direction.
0:34
Yeah, I called RFKI was just listening to our last podcast.
0:37
I called RFKJFK like 6 times in a row.
0:40
So the very I only. Corrected you once, I only heard
0:43
it once. But once you corrected me, I was
0:46
I got right from that point forward, so at least I
0:48
understood what I was doing. They get the gist.
0:51
But yeah, the story behind my voice, it's NYMA story.
0:53
I was sick. And it's one of those days where
0:55
I'm like feeling better, but sounding worse.
0:57
I texted you this morning, I'm like, should we do this?
1:00
And we're like, well, it's we're we're recording this in early
1:04
December. And unfortunately, December is
1:07
when like schedules don't line up.
1:08
And so we're batch recording two of these today.
1:12
And so I'm going to have a weird voice for two of these that are
1:14
going to air as you're listening to them, you know, when it airs,
1:17
this one on December 11th. So yeah, so either sorry or
1:23
you're welcome based on how you think my voice sounds.
1:25
You sounds like you're very self-conscious about it, which I
1:28
think is funny. Do you?
1:29
Did you ever watch Friends? Yes, do.
1:31
You remember when Phoebe was sick and she was like, she loved
1:34
her voice. Oh no.
1:36
And it was she was sad when she got better because she was like,
1:40
Smelly Cat was like epic when she had a little rasp in her
1:44
voice. Yeah.
1:44
No, I feel that. I actually do think there's an
1:47
aspect to my voice that I like. So as long as it doesn't bug
1:49
people, it doesn't bug me. I don't.
1:51
I'm not like that's. What I was asking usually if
1:52
does it hurt you were like, no, I'm like then let's record.
1:55
OK, let's go. Let's party.
1:56
Let's let's proceed as if this is going really well.
1:59
It's. Definitely not, but let's
2:01
pretend like it is. OK, exactly.
2:03
It's all about. I don't want it doesn't.
2:04
Even though you said you're saying your voice doesn't hurt,
2:06
I don't want to put any more strain on it because maybe
2:09
you're just not aware that you're grading on those
2:11
beautiful vocal cords. So let's get into it, explain it
2:18
like I'm five. It's this is going to be a
2:21
little bit of a Part 2. We, we talked about some
2:24
retirement accounts. I forget which episode that even
2:25
was, but you mentioned backdoor Roth IRA.
2:28
So let's jump into that. Tell us what it is and how, why
2:32
we would need it and how to use it.
2:33
OK, we always make jokes about how I can't explain things like
2:37
anyone's five, and this will be no exception to that because,
2:41
you know, a 5 year old never understands.
2:43
But I will I am going to make a promise from this point forward,
2:47
which is I will make a simple analogy and every explain it
2:50
like I'm five that a 5 year old could understand.
2:52
And from that analogy, maybe the the root can plant some roots
2:57
from which the plant some seeds from which the growth of the
3:02
leaves of understanding you're. Losing us already.
3:04
This analogy was not the one I planned.
3:06
This was a terrible analogy. OK, so as you may remember from
3:09
a previous episode, a Roth IRA is a special type of brokerage
3:14
account, which is basically like a bank account.
3:16
You put money in and then you invest the money inside of that
3:19
account. So I contribute money to a Roth
3:21
IRA, then I buy some investments like index funds, and then it
3:26
grows. And the benefit of a Roth IRA
3:30
over just a regular old brokerage account.
3:32
Like you could go to fidelity.com and click in, click
3:35
open brokerage account or you could click open Roth IRA.
3:38
The only reason you'd ever choose Roth IRA is because
3:41
you're not taxed on any of the growth.
3:44
And so it's a very special account that basically can save
3:46
you a lot of money in tax. But there are some rules.
3:50
One of the rules is there is an income limit, which is you can't
3:53
contribute unless you make less than a certain amount of money.
3:57
So there's a phase out range, which is annoying.
4:00
But basically if you make over as a single tax filer, $153,000
4:04
a year or as a married filing jointly tax filer more than
4:08
$242,000 per year, and this is technically your modified
4:12
adjusted gross income, your MAGI.
4:14
We're like so far out of five year old territory.
4:16
But the fun little analogy is coming.
4:18
But basically, if you make too much money, the government says
4:21
you can't contribute new money into a Roth IRA.
4:26
What's inside of there already from previous years, from
4:29
previous years contributions plus all of the growth.
4:31
That's fine, that's always good forever.
4:33
But you there's this little like limit, a little speed limit sign
4:36
that says, hey, you can't put more money in, OK.
4:38
And so what's the backdoor Roth IRA?
4:40
A backdoor Roth IRA is 100% about getting around this income
4:45
limit contribution. So very sounds a.
4:48
Little bit illegal, not going to lie.
4:50
Well, OK, we'll get into the legality.
4:51
But if you're, if you're way under those income limits that
4:55
152 or $153,000 as a single person or $242,000 as married
5:01
filing jointly, if you're way under those limits, then you
5:04
don't care about backdoor Roth IRA as you can just go on the
5:06
front door. But if you make, say, $200,000 a
5:09
single person, the government says you can't contribute to a
5:12
Roth IRA, you're too rich, you make too much money, go invest
5:16
in a regular old brokerage account and pay tax like
5:19
everyone else. Yeah.
5:20
OK, so imagine this is the analogy.
5:23
It's going to get really fun, guys.
5:24
So if you're listening in your car, you know, you might just
5:26
want to get those hands, A10 and two, because this is the fun
5:29
analogy. I can't tell if you're being
5:30
sarcastic or not. I know this with the with the
5:34
voice, it sounds not sarcastic, but that's very sarcastic.
5:36
But still, I'll do my best. So the Roth is like this special
5:39
candy jar. Uh huh.
5:41
And candy jar when you you can put when you can put candy in
5:45
and we take candy out. There's no dad tax.
5:47
You know, did you ever have like a dad or a parent tax where if
5:50
you have a candy, like they take some of your candy?
5:53
Yeah, my mom definitely took all of our Snickers at Halloween.
5:55
Exactly the the mom tax. So so this this is like a
5:59
special candy jar where you can store all your candy.
6:01
When you take candy out, you get to eat it without the parent
6:04
tax, right. But if you're just for like
6:07
little kids, when you're a big kid, the parents say, hey,
6:13
parents being the government's analogy, the parents saying you
6:15
can't use that special candy jar anymore.
6:18
We're going to always get a piece of your candy because we
6:20
that was just for little kids to get them used to it, get them
6:22
warmed up. Once you're, you can't use that
6:25
special candy jar anymore. But there's a different candy
6:28
jar called a traditional ironing and that anyone can use, even
6:32
big kids. And so it's very legal to put
6:35
money in the other, the second candy jar.
6:38
And it's also happens to be illegal to dump candy from your
6:43
second candy jar into your first candy jar.
6:45
And so the back, the back door Roth IRA is simply you instead
6:50
saying, Hey, you can't put money in this very special candy jar.
6:52
So you put candy in the other candy jar and then literally 2
6:56
seconds, like one 1000, two 1000, you just dump it in.
6:59
And that's why it's, that's why, you know, I feel like people get
7:02
very, and I'm going to go into the specifics a little bit
7:05
because it's like people get very abstracted.
7:06
Also like, what do you mean you do it later?
7:08
It's like there's a website and you go, you transfer money into
7:11
your Traditional IRA and then you click convert button and
7:13
then you convert to a Roth IRA and that's how you do it.
7:17
And that's called the backdoor Roth IRA.
7:18
And so that's, that's all it is. It's basically saying, hey, you
7:20
can't put, you can't put mine directly into this account, but
7:23
you can put mine into this other account and then, you know, this
7:25
other candy jar and then dump it in.
7:27
That's what the backdoor Roth IRA is.
7:29
So here's getting into getting back to speaking to the adults
7:32
who are, you know, take your five year old who was driving
7:36
the car, put him back in his rear facing seat in the back.
7:39
I don't think you should have been having the five year old
7:41
drive anyway, put. Him on the booster.
7:43
Yeah, put him on the booster if he's over 40 lbs I got, I got
7:46
some five. I got a four year old Now I know
7:47
what it is. But yeah, back to the adults.
7:52
First of all, if you are making this much money, you're probably
7:56
in talk to a financial advisor or talk to ACPA territory.
8:00
There's I will explain what this is because it's good to be
8:04
educated, but there's enough moving parts in your financial
8:07
world. Now we're just kind of going
8:09
rogue and doing a backdoor Roth IRA just because it sounds like
8:12
some cool hack probably isn't a good idea without talking to
8:15
your tax preparer and or your financial advisor about the
8:19
other moving pieces in your world to see if this is even the
8:21
right move. OK, so that's everything talk to
8:23
CPA. So how's it work?
8:26
Is you, you click contribute, you click transfer money into
8:30
your Traditional IRA. But with a, when you convert
8:35
money from traditional to Roth, you get taxed.
8:37
So in the canning jar scenario, the dad tax happens like say,
8:40
oh, you're dumping money from this traditional into the Roth.
8:45
I'm going to take my tax out then.
8:47
But when you contribute to the Traditional IRA, you file a form
8:50
with government says, hey, this money has already been taxed.
8:53
I paid the dad tax. I paid federal tax when I made
8:56
the income, when I was trick or treating, you know, Dad took
8:59
some of the candy then, so I don't have.
9:02
This is already too much work. I know I.
9:04
Know how many people forget to fill out this form and they just
9:06
miss out on that money? Jen, you know what?
9:09
That's the smartest thing you've ever fucking said.
9:11
Can I swear it out? I don't know.
9:13
Because here's the thing. I feel like there's this like
9:17
Dunning Kruger curve of personal finance.
9:20
Where you learn a little bit the Dunning career curve for those
9:24
who don't know, it's like the people who know nothing know
9:26
they know nothing. The people who know a little bit
9:28
think they're super smart. And then you learn more and you
9:30
realize, oh, I'm not that smart. And then as you become a super
9:33
expert, you're like, OK, I'm medium smart now.
9:35
And so the people who are the most confident in their
9:37
knowledge are actually among the least knowledgeable.
9:41
And I think that a lot of people could fall on that here, which
9:45
is saying, hey, I heard about this tricky move called the
9:47
backdoor Roth array. Now I know what's going on.
9:50
I'm going to go do it and save a bunch of money.
9:52
But if you don't fill out that form or you don't do this
9:56
correctly, you can actually end up being double taxed.
9:58
You could pay tax on your income or you could be like subject to
10:01
an IRS or that Lady that says, hey, you didn't fill out this
10:03
form or whatever it is, you know?
10:05
And so that's why I say you might be a talk to ACPA
10:08
territory and the other the other caveat here is let's say
10:12
you already have money sitting in this other candy jar, like
10:16
from either an old 41K you rolled over into it or you
10:20
previous just contributions or whatever.
10:22
And then you put new money into it and you file, you correctly
10:26
file the form, hey, form 86-O6, I'm declaring this non
10:29
deductible contribution. I'm going to put this already
10:31
taxed money into my second candy jar here with the intention of
10:35
dumping into the first. The rule says you have to take
10:37
that second candy jar and shake it up.
10:39
Shake, shake, shake, shake, shake.
10:40
So it's perfectly mixed. And then anything you dump in
10:43
has to go on what's called pro rata or in proportion.
10:47
The new money, the old money, all mixed in.
10:49
Which means if you have some pre tax money in your second candy
10:53
jar and some post tax money in your second candy jar, that's
10:55
got to get mixed up and you have to pay tax on it proportionally
10:58
based on how much you transfer. And once you're paying tax on
11:01
the transfers, you're kind of getting in this OK.
11:04
And now it gets really sticky, which is OK.
11:06
Is it even worth it anymore because I'm paying tax at the
11:08
current? Tax and who's keeping track of
11:10
what's pre tax, what's post tax? Like are you supposed to be
11:12
doing that? Is your CPA doing that?
11:14
Is a financial advisor. 100% and you know at Nectarine, which is
11:18
where we have flat fee financial advisors, we can go talk to a
11:21
financial advisor without them selling you a product or trying
11:25
to manage your assets. They often have this problem,
11:27
which is OK, now we need to go dig in through all your prior
11:30
contributions, all your prior tax returns, try like figure out
11:33
what's really in here. And the reality is, is a lot of
11:36
times, sometimes people don't have the records to support that
11:40
they put post tax money into a Traditional IRA or rolled over a
11:44
Roth 401K into a Traditional IRA or whatever it is.
11:47
And they're potentially going to get double taxed, right?
11:50
And it becomes a kind of logistical mess.
11:54
So if you're like 100% on it, like every single record, every
11:58
single receipt, every single contribution, every single, you
12:00
know, like, you've got the spreadsheets, like, that's cool.
12:03
But at some point, my big take away from this is that, you
12:08
know, sometimes the juice ain't worth the squeeze.
12:10
You know, like all this effort when you could you're, you're
12:14
introducing risk of messing it up.
12:16
It's not that big of a deal really.
12:18
If you're making that kind of money, you can only put 6 or
12:20
you're going to put $7000 in next year.
12:22
Or actually is it $7500 for next year?
12:24
It went up, right? Yeah, $7500 for 2026.
12:27
And so if you're, if you're investing $30,000, only 7500 at
12:31
all can even go in there because there's a contribution limit.
12:34
And so, you know, I've done it backdoor Roth Iras.
12:38
I've not done backdoor Roth Iras and you know, my life is no
12:42
different for sure. If you like put it in the
12:45
spreadsheet and and extrapolate out 100 years, like, Oh yeah,
12:47
I'll have another, you know, 50 grand in the year 2330 when, you
12:53
know, the sun has expanded and and engulfed the earth and we've
12:57
all, you know, burned to a crisp and there's no record of humans
13:01
ever existing. Great.
13:02
You're you're, you save some facts, you know, but I always
13:05
like to make you know, and the big biggest scheme of things,
13:08
nothing at all matters. And so if you are considering a
13:12
backdoor author, I I'd go grab an hour with a Nectarine advisor
13:15
and or talk to your CPA and see, you know, if this even makes
13:19
sense for you and consider like, is it even really worth the
13:22
hassle? Because there's so many benefits
13:24
of investing in a regular old brokerage account and people get
13:28
so nutty about these special fancy named accounts like Roth
13:32
IRA, four O 1, KTSP, 457 HSA, you know, all these different
13:37
accounts. They forget that a regular old
13:40
brokerage account has tons of benefits too.
13:42
And it's like ultimately simple. You can put money and take money
13:45
out whenever you want without any rules.
13:47
And there's even ways to have it existed, a 0% tax bracket in
13:49
your brokerage account, which I'm not going to talk about now
13:55
because I've already been yapping for like 10 minutes on
13:58
this plus. And we're going to be talking
14:00
about attack brackets soon, sooner than rather than later.
14:02
So we'll save it. All right.
14:05
Definitely out of five year old territory.
14:07
I did like the candy reference. I like the idea of putting in a
14:10
little something for the five year olds, but at the end of the
14:13
day these financial topics, they're not quite so easy to
14:16
bring into a 5 year olds. World yeah.
14:18
Taxes no one likes. You're doing your best.
14:21
You're doing bad. Tax though, That kind of makes
14:22
sense, right? Or mom tax?
14:23
Or parent tax. Exactly.
14:25
It's kind of like how my dad made me figure out how to clear
14:29
out all his voicemails from his Android on his last family
14:33
vacation. And I was like, this is dead
14:35
text because this is hell. I'm like, I'm like, I don't have
14:37
an Android. You have to like clear cache on
14:39
some of these like Samsung. I'm like.
14:41
Cash. Oh my God, Apple would never.
14:43
Stupid is it? Cash or cachet I.
14:45
Always. I'm always worried if I'm that
14:46
I'm saying it wrong. I will tell you as someone with
14:49
a masters degree in computer science, it is cash.
14:52
Yes, it's like it's like GIF and Jif.
14:54
I'm like always nervous. I I.
14:56
Always say GIF but that one there's not clear.
14:59
It's unclear for sure, and there's definitely a war.
15:01
OK, sweet. You're Wade.
15:04
We'll have to get into that. Another.
15:05
Episode The founder, the creator of this thing says it's Jeff.
15:10
OK, All right. I'm not getting into this with
15:13
you and I don't want to fight. Let's get into our next segment.
15:15
Money, Money. Can I ask a dumb one?
15:19
We have been getting a nice little stack of questions and
15:21
this is an audio message that we got from Andrea, who even told
15:26
us how to pronounce her name. She said it in her audio
15:28
message. It was just.
15:29
Being married to an Andrea. So I, I know that the chance of
15:33
for some, there's only like 3 or 4 ways to pronounce the same.
15:35
It's like Andrea, Andrea, Andrea, Andrea.
15:39
Yeah, but it it, it, it gets pronounced 0% of the time
15:43
correctly. Just it's like one of those how
15:45
like the USB never goes in the right way the first time.
15:47
Andrea never gets. Ever.
15:49
So I asked Andrea. Yeah, it's like Jen with with 1
15:53
N It really grinds my gears. But like if you're saying my
15:55
name, I'm not going to know if you're feeling if you're giving
15:57
me that extra N or not. So it's even.
15:59
More I say it, I say it with 1 N that's.
16:01
Crazy you're trying to fight today.
16:03
I'm not taking the. Bait, Jen.
16:05
You know what was it? It's not Mirror and Webster, but
16:07
one of their dictionaries released their word of the year
16:09
and it's rage bait. And this is you're feeding into
16:11
that and I'm not taking the bait.
16:13
OK, so anyway, Andrea, watch us. We were saying her name wrong
16:16
this whole time. Ask an audio message.
16:19
Ask the question via audio message.
16:21
So go ahead and click on that. We're going to play it for you
16:23
guys and then Jeremy's going to answer it for those of us that
16:27
don't want to be invested in AI for whatever reason.
16:32
And given that the majority of the S&P and stock market in
16:36
general is being propped up by AI, if we are still at least a
16:41
decade away from retirement, what can we do to divest our
16:45
portfolio from AI, even if it's just temporarily?
16:50
This is potentially because of an AI bubble or all the
16:54
speculation, or it could be ethical reasons and just not
16:59
wanting to support billionaires. Would love to know if there's
17:04
anything we can do at this time, even just to put our portfolio
17:12
growth on pause until this AI situation relaxes.
17:17
All right, Andrea, so you asked about what do you do about this
17:22
big AI bubble? And I'm going to break down my
17:25
answer into two parts because you really gave 2 very big
17:30
reasons why someone might want to do this.
17:32
And I think there's very different answers to them based
17:35
on what your reason truly is. So Part 1 is you think there's a
17:39
speculative AI bubble and these, the stock market is propped up
17:43
by these seven companies. We talked about this in like
17:47
last episode, I think, where they're all sending money to
17:49
each other and it's all like, it's all Monopoly money and the
17:52
the bombs going to fall out one of these days.
17:55
And so he said, what do I do to get out of this scary bubble
17:59
situation, even temporarily to avoid the crash?
18:04
And here's my problem with that premise.
18:07
What you're doing is speculating.
18:11
I would put that squarely directly right in the middle of
18:15
the bucket of market timing speculation like any other type
18:18
of market timing speculation. I could say I don't want to
18:22
invest in Home Depot because Lowe's is having better holiday
18:26
sales. I'm going to, I'm going to jump
18:27
out of the market while tariffs are going crazy and then jump
18:30
back in when they stop. I'm going to, you know, there's,
18:32
you could make 1000 different premises for 1000 different
18:35
reasons and 1000 different choices about when you should
18:37
jump in and out of the market and when you should, what you
18:39
should sell, what you should buy.
18:40
If you're just guessing what you think the market's going to do
18:44
based on your view of the world, like by definition, you, Andrea,
18:48
me, Jeremy, Jen, that time I said it with two ends because
18:52
I'm being respectful. But the three of us, we all, we
18:55
all, we all have something less than the sum total of all human
18:59
knowledge. And so that's how you feel,
19:01
Andrea, which is great. And you might fully be right,
19:04
you know, but I think you have about a 50% chance of being
19:06
right because on the other side of this tug of war that sets
19:11
stock prices are people who are sure that the stock market that
19:15
is going to go even higher when this transformative technology
19:19
becomes more mature. You know, the other side of that
19:23
coin is this is like once in a, you know, thousand year
19:28
technology that, you know, humans can be the work can can
19:32
be done by computers in ways that we thought never even like
19:34
was science fiction like 10 years ago and now is becoming
19:37
reality. If you buy now, the market is
19:40
going to scream even higher when this when this technology
19:43
matures, right. And so, you know, and actually
19:45
we're going to talk about this post in a, in a minute, but
19:47
there's a post that says like a crash is coming.
19:50
I promise you a crash is coming. You're right, I'm right.
19:52
But the bottom of the crash might be higher than where the
19:55
market is today. So you might get out of the
19:57
market today to avoid the AI crash, but that might crash what
20:00
happened in two years. And the bottom of the crash
20:03
could be 30% higher than where we are today.
20:05
And So what do you do then? Do you buy back in and you
20:07
missed in 30% of the gains? And, you know, so this whole
20:11
speculation side of the coin or this whole speculation, not
20:14
coin. I mean, I use the word coin too
20:16
many times. So it's OK matrix now coins and
20:19
rules, but whatever. But for this reason that you
20:22
gave of, of speculation, I say don't do that.
20:24
You know, you asked me, that's my answer.
20:26
Don't do that. Buy and hold.
20:29
You know, if it if it's a bubble, great.
20:30
If it's not great. Just think in terms of decades,
20:33
not in terms of of weeks or months or years.
20:35
And it's all going to come out of the wash OK Dad's reason #1
20:39
don't speckles, don't speculate reason #2.
20:43
That's like a slur. Yeah, don't speckle either.
20:46
Speckled ceilings, the popcorn. It's very 1970s.
20:50
Hey, not too much on my LA apt. I got the popcorn ceilings.
20:53
Do you? Oh, man.
20:54
OK, Jen's got popcorn. It's probably good for audio.
20:57
You're like a singer, right? So maybe there's some sort of a?
21:00
Honestly I have no sound treatment in here so y'all are
21:02
probably hearing a million things.
21:04
OK, we at least about that microphone.
21:06
So I think it sounds pretty good.
21:07
I I think this sounds, this podcast sounds way more
21:10
professional than it deserves to, but we'll, we'll, we'll
21:14
bring up the content anyway. OK, let's go back to this.
21:16
So you said two big reasons you don't want to invest in AI 1 is
21:18
like pure market timing speculation.
21:20
My answer is don't do that. The other reason you said is
21:23
ethical. You said, I don't want to
21:25
support this for whatever reason, the billionaires who are
21:28
who are benefiting from this. The the implications on human
21:33
work, if it's going to, you know, if AI is made bad for
21:36
creatives or low level workers, or it's going to increase the,
21:43
the income or the, the wealth gap.
21:45
I mean, you know, there's all sorts of reasons to be
21:48
potentially scared of AI. And you could say AI is going
21:52
to, you know, 'cause mass layoffs because now humans don't
21:55
need to work anymore. For what it's worth, I generally
21:59
don't fall in that camp. I think that you can look at
22:04
1000 technology advances of our past, you know, the printing
22:10
press, the content and the, the, the computer, the car, the, the,
22:14
the plane, the, you know, and every one of these potentially
22:19
put unknown people out of work, right?
22:22
So when, when farming became industrialized, it used to be
22:26
90% of people are farmers. Then he had a few blacksmiths
22:28
and a few Cobblers and whatever. And most people are growing
22:31
food, you know, now in the US, like 2% of people are farmers.
22:34
Like only 2% of people can grow food for 100% of people.
22:37
It's amazing. But it doesn't mean those 88% of
22:40
people who used to be farmers are now just living on the
22:42
streets. They're social media influencers
22:45
and marketing directors and farmer.
22:47
Turn social media influencer. Haven't heard of that pipeline.
22:50
You're not on farm talk. Come on.
22:54
I don't know if that exists. I'm sure it does.
22:56
I'm sure it does. Yeah, OK.
22:59
But so I generally don't fall in that camp.
23:01
I think that while this may be a transformer technology, I think
23:05
humans are very adaptive. And I'm not trying to mitigate
23:10
the concerns about wealth inequality.
23:11
I think that's horrific. And there's, you know, copious
23:14
reasons that we can point to it and we need to address that.
23:17
But I don't think the existence of AI alone is going to be like
23:21
an existential Christ. But you know, I'm a clown.
23:24
I have no idea, right? There's someone on the other
23:26
side of this who knows just as much who's thinks the other
23:28
thing. But anyway, let's get back to
23:29
ethical reasons. So you don't want to support
23:31
billionaires. What do you do?
23:33
This one, I I'm not going to say flat out don't do it.
23:35
I think it's a little bit more nuanced, But here's my problems
23:38
with it. One is it can get very
23:40
complicated. What what companies don't you
23:43
buy? You know, if you can't buy the
23:46
total U.S. stock market index now, you may be getting into a
23:48
stock picking situation. Are you going to buy 4000 stocks
23:52
in the in the total stock market minus the 50 you don't like and
23:55
then try to manage those that would be.
23:57
And also not to say like resistance is futile, but what
24:01
companies are you not going to find any conflict with?
24:04
Well, and that's a really, John, you're just fucking dropping
24:06
bombs. Like I feel like I do all the
24:08
talking and you say the smart stuff.
24:09
And that's why we make such a good team because on aggregate,
24:12
someone's saying smart stuff. But you're so right.
24:16
I already give you an example because there's actually, so you
24:19
get an individual stock picking, which like you just said, gets,
24:22
you know, into this Gray area like, okay, who are the good
24:26
companies for the bad companies? But there are funds that do
24:29
this. They're called ESG, which stands
24:31
for environmental, Social and governments.
24:33
And they basically are funds that of companies demonstrating
24:37
strong environmental, social and governments governance
24:41
practices. And so you're like, OK, that
24:43
sounds great. I don't want to buy these, you
24:45
know, these bad companies that create bombs and cigarettes.
24:49
I'm going to just support the good companies.
24:50
But here's the problem with those is like it gets so
24:53
subjective and you're like, OK, and then like every company
24:57
exists in a Gray area. And so I'm going to there's and
25:01
you know, Vanguard, a very altruistic company, they have a,
25:04
a social index fund that does this.
25:07
It's VFTAX, Victor, FTA X-ray. How about that for my NATO
25:14
alphabet VFTAX? And I'm just going to go down a
25:17
list of what they've included and what they've not.
25:21
So Amazon, Yes. Why wait?
25:23
Amazon, Oh. Wait, wait, wait, wait, wait.
25:26
We were one. You said Amazon is on their.
25:28
Ethical. Yeah.
25:29
Amazon. Yes.
25:30
Ciao. We're already out.
25:31
We're. Already at the game.
25:33
Johnson and Johnson, no. OK, Proctor and Gamble.
25:36
Yes, I'm. So confused.
25:39
Exxon Mobil. Wait Proctor.
25:41
And gamble. Do they make cigarettes?
25:44
I don't think so. I think they make like medical
25:47
stuff and soaps and OK, OK, OK. Sorry.
25:50
Yeah, keep. Going.
25:50
Keep going. Keep going.
25:51
Pfizer yes, Walmart no. And so it's like, OK, well,
25:56
Walmart no. Amazon, yes.
25:57
Right. Like Nike?
26:00
Yes. Phillip Morris, the cigarette
26:03
company. No, that's.
26:04
The cigarette. OK, that's I was thinking of.
26:06
Bank of America, yes. Wells Fargo, no.
26:09
And so you can see already the people who do.
26:10
This for a living. From picking between the two, I
26:12
would probably say yeah, probably not, probably not Wells
26:14
Fargo, but I don't know if Bank of America is exactly Scott.
26:16
Well, exactly like you said, like what company do you not
26:18
like what? What like big massive bank and
26:21
you know, like do you have to invest in big companies?
26:24
Like if, if you're like, so taking the position of big
26:28
companies are bad. Investing becomes very
26:32
challenging. You could go invest in your like
26:34
your local Co-op or something, but you're probably not going to
26:36
see profitable returns over and over.
26:39
Like you can't or they won't be able to handle this investment
26:41
or gets logistically, you know, you can't just like transfer it
26:44
in and stuff like that. So and the other problem with
26:47
these ESG funds is there also there's still market weight or
26:53
market cap weighted, which means you have the most of the biggest
26:56
companies, the second most of the second biggest companies.
26:58
And so instead of like saying we're going to buy, put lots of
27:01
money into the co-ops, lots of money into the green companies,
27:04
lots of money into solar. And it's still, there's still
27:06
market cap weight, which they kind of need to be, or else you
27:09
get into this whole other weird where, where you're basically
27:12
putting too much money in these tiny companies and potentially
27:15
subjecting yourself to massive downside risk if those companies
27:18
can't sustain the growth or whatever.
27:22
And then here's the other problem, which is it doesn't
27:26
really have much effect. I think you might have said this
27:27
too, Jen, which is my, my metaphor for this is like,
27:30
imagine an Olympic sized swimming pool, 50 meters wide,
27:33
you know, 10 feet deep, whatever.
27:34
And you go up to it and you take a thimble of water out of one
27:37
side, the bad, the bad side. And you walk over to the good
27:40
side, you dump your thimble in, you know, what's the net effect
27:44
to the, of the water level? And the answer is like nothing,
27:48
you know, And the problem, the reason is, is because the
27:51
market's efficient. There are algorithmic traders,
27:54
there are mutual funds, there are day traders.
27:57
There are, you know, satellite companies that do this, that all
28:01
you know, they're deep research companies.
28:03
And they're all, you know, if if they look at Philip Morris, the
28:07
cigarette company, and say, yo, that's a massively goodbye.
28:11
Everyone sold their stock, but they're still on pace to sell
28:14
$50 billion worth of cigarettes this year.
28:16
I'm going to buy it right now and just collect all the profits
28:19
from the from, from their dividends.
28:21
That's, you know, someone's going to do that.
28:22
Like, I hate to say resistance is futile.
28:24
Is that did you say that? I did say that.
28:26
Oh yeah, see you say all the smart stuff.
28:29
I'm this is depressing me though, because I'm like, you
28:31
can't do anything. Well, I feel for Andrea. 100% I
28:35
agree with you, but here's the thing.
28:38
I think people conflate where their investing dollars go and
28:42
where their spending dollars go. If you want to stop cigarette
28:46
companies from making money, the number one best thing you can do
28:49
is not smoke. Because once everyone stops
28:52
smoking then they don't make any money.
28:55
If you don't invest in their company, nobody cares because if
28:59
everyone else is buying cigarettes, they're going to
29:00
still do great. It's not, you know who owns
29:03
their stock The day that I want to stop smoking, that's not
29:06
what's going to put them out of business.
29:08
The fact that they have no revenue is going to put them out
29:10
of right, right. So she should stop using
29:12
ChatGPT. 100% you use. Wastewater and takes taking our
29:16
jobs. It's taking our jobs.
29:18
Exactly. If you want to have a bigger
29:21
impact, vote with your behavior and vote with your dollars.
29:24
Don't use ChatGPT, don't use AI, don't support creators using AI,
29:29
you know, don't support, you know, big companies using AI.
29:32
And I feel like it's a little bit of a cop out because I think
29:34
a lot of people like I don't want to own.
29:36
I don't want to own, you know, Google stock because they're
29:40
using AI. But I'm definitely using Google
29:42
every day and I'm clicking there, you know, like if you,
29:44
you got to kind of put your feet to the fire and say, hey, if you
29:47
don't like AI, don't use those AI features, don't use those
29:50
companies. Yeah, don't use ChatGPT to text
29:52
to your friends. I hope my friends aren't
29:54
listening. I just found out my friend might
29:55
be using ChatGPT to text me and I was like girl what is this
29:58
text? That's super smart, just like an
30:00
auto reply I can come to chat. GPT tell when it's you so yeah.
30:04
Don't I know why do you keep putting M dashes and texts?
30:07
I don't know how to use that function on my phone.
30:12
OK, that that makes me feel a little bit better.
30:14
And I feel like, yeah, we are a lot of us are getting a little
30:16
lazy when it comes to how we're using AI.
30:19
Like, I mean, you at this point, you can't even skip the AI
30:21
overview on Google. It's the first thing that comes
30:23
up. But I guess you could click on
30:25
the links below, which are probably somehow AI generated as
30:27
well. But like it just kind of goes to
30:29
like, you know, I feel like not buying their stock is such a
30:32
cop. I like, Oh, that's easy, but it
30:33
doesn't make an impact. Not using their service does.
30:35
And if you don't like AI, then don't use your service.
30:37
There are other search engines out there.
30:39
You could probably you know, I my life is very and I don't
30:41
think Google's like the worst AI bad guy, you know, but if
30:46
everyone stops using Chachi PT tomorrow, guess what?
30:49
The AI bubble is going to pop right.
30:52
So I mean, you know, there's lots of AI beyond ChatGPT, but
30:56
you get the idea. So but with your, but with your
30:58
spending dollars, but with your behaviours, that's going to have
31:00
a bigger impact. That's what companies are really
31:02
looking for, and not who happens to own their stock on any given
31:05
day. OK, that I feel better.
31:08
I feel more hopeful, I think. I don't know, Yeah.
31:13
I mean, I kind of tend to say like everything just seems to be
31:16
getting worse lately and like, AI aside, but just seems like,
31:18
you know, politics and global everything.
31:21
But you know, I'm an optimist at heart.
31:24
Things will get better one of these years, right?
31:26
Everything either sounds way too sarcastic when you're sick or
31:29
like, not like very earnest. I can't.
31:32
I'm not I'm not able to place it.
31:34
I don't know which is which at this point.
31:35
Let's move on. You don't even know what you're
31:37
doing. Okay, let's move on to Scroll
31:43
Patrol. Scroll Patrol.
31:46
My little scroll patrol callback is probably the best right now.
31:49
We should. We should.
31:50
Like Ricola? Yeah, we should.
31:52
Ricola, where's our where's our recolor sponsorship?
31:56
I got to get some cough drops up in here.
31:58
Oh my gosh, I have some little Vicks right here as I drop it.
32:02
Some Vicks, but maybe we can go for them.
32:04
But they don't have a cool theme song.
32:06
OK, so this, everything, listen, everything is all connected.
32:09
I don't, I never know when to make things like too connected
32:12
within our episodes or like very disparate.
32:15
So hopefully this isn't too much overlap.
32:17
But I picked a video from the Internet.
32:19
Jeremy's going to review it. He hasn't seen it.
32:21
I edited it down, but I, I didn't edit it down that much
32:23
because I felt like the context was necessary.
32:26
So to give that a listen or a view and we'll talk about it.
32:33
Over the last couple of months, there have been more days than
32:37
not what I've woken up going. I think I should just sell
32:39
everything. I think I should just take
32:41
profit. I am nervous that we are in not
32:44
just an AI bubble, but an AI driven bubble for the entire
32:47
market. When you look now at the
32:50
expected returns on USUS equities, the equity risk
32:54
premium, I'm going to explain what that is, is tiny.
32:58
It's practically 0. And so just to bust through the
33:01
jargon for a second, you've got different kinds of assets,
33:04
you've got less risky assets. And the closest thing to being
33:06
riskless in theory is the US Treasury.
33:09
And then you take a look at equities, at stocks and shares,
33:12
and they typically trade in a way that the return you get is
33:15
at a premium. It's more than you would get
33:17
from Treasuries. That difference is your reward
33:19
for taking the risk of owning equities and typically that
33:23
difference, that reward for risk has been meaningful.
33:26
It's almost nothing right now and it just cannot be in my mind
33:29
that owning a share in Palantir, which I do by the way, or owning
33:33
a share in in work day, which I do, is the same level of risk as
33:38
a United States government bond. That does not make sense.
33:41
That's a very long way of saying yes, I do think that we are in
33:43
bubblicious territory. Well, if you've sold any tech
33:46
stocks over the past 30 to 40 years, you would probably
33:48
regretted that. Yeah, absolutely.
33:50
And that's why I'm tortured by it.
33:51
That's why we're all tortured by it, right?
33:53
That's why I wake up in the morning and go, should I sell
33:55
today? And the answer is I haven't.
33:56
Yeah, that is very topical given our last segment.
34:02
I mean, you know, she's a British accent and so I just
34:05
obviously can't compete with that.
34:06
And I'm. Screaming I.
34:08
Have to give her full marks. It sounds super smart.
34:12
Whatever she says, you know, her analysis is spot on and you
34:17
know, and she even is very reflective about the fact that
34:23
why isn't she selling if it's so clear?
34:26
And, and she makes she makes the AI bubble case, which is, you
34:31
know, she was talking about the premium, which is the reason you
34:34
would own ever own stocks rather than owning bonds is because you
34:38
expect it to go up more in the future.
34:40
And the trade off is there's volatility along the way.
34:43
Whereas bonds, you know, are they pay a dividend or they pay
34:47
a coupon payment. They basically only, you know,
34:49
they give you the target payout. Stocks are just kind of like
34:53
more wild card. But historically bonds are
34:56
paying like 4 or 5%. Stocks are more like 10%.
35:00
And, and she's saying right now this like forward-looking
35:03
premium is like almost no nothing.
35:05
But you know, here's the thing with forward-looking premiums,
35:09
They're total nonsense, right? Nobody knows, right?
35:11
Every single, every single year, you know, Vanguard or a Citibank
35:15
or whoever comes out with their like forward-looking predictions
35:20
and they're saying, hey, because of these fact, like very, very
35:24
smart people doing a very deep analysis because of these, all
35:26
these factors, the market's only going to return 3% over the next
35:29
10 years. And so it's the, and they're,
35:31
they're like, Jeremy, why would you say stocks are going to do
35:33
good if it's only going to return 3%?
35:35
And I asked them how accurate have those predictions been in
35:37
the past? And their answer is, what do you
35:39
think they say when I ask that? They don't know.
35:42
They got no idea, no one second their homework.
35:45
And the answer is about they're not, they're not, You know, you
35:47
go look at like 2013, it's like, you know, just after, it's just
35:51
after the.com crash in the early 2000s and the finance crisis in
35:54
2008, like 2013, everyone's like very nervous and the market's
35:57
climbing in and, and like, oh, estimations are very low, The
36:01
premium's very low. You're not going to get returns.
36:02
And then we have like the 12 greatest series in stock market
36:05
history, whatever. So.
36:07
You're always going to find somebody that you can that can
36:09
just not self fulfilling prophecy, but they can just you
36:12
can say they got it right, but the hindsight's always 2020.
36:15
Yeah, exactly. They say, They say the bears
36:17
have correctly predicted 26 out of the last three crashes.
36:21
That's the joke, because there's always a really good argument
36:24
for a crash coming and they're always predicting it.
36:27
And then they, they got, they predicted 26 times and it
36:29
happens three times, right, right.
36:31
And then when they, when they then when they're right, they're
36:32
like, see, I told you so on prediction #13 that correctly
36:36
predicted crash #2 And so, you know, I don't know this person.
36:41
I don't think I even showed her name in the in the second.
36:42
Her name's Anne Berry. The the.
36:45
So the show is Morning Brew Daily, but she hosts Brew
36:47
markets, and they had her on. Yeah, they're like sister
36:50
podcasts. So yeah, she's obviously very
36:53
smart. Like she knows her stuff.
36:54
I like don't like don't call into her, question her, her, her
37:00
like capacity or her accolades at all.
37:03
But I'm a Bogle head and the Bogle head perspective is we
37:08
know that the market is where it is because of this balance and
37:12
this tug of war. And so while she's making the
37:14
bear case the next episode of Morning Bruce, someone could
37:17
make the bowl case and say this is transformative technology.
37:21
And yeah, while things are priced very high, we think it's
37:25
going to go even high. Like we think it's going to be
37:27
better than people are expecting right now.
37:30
And so you're not, you're not buying AI stocks expecting to
37:32
get like Walmart returns. You're buying AI stocks
37:35
expecting to get NVIDIA returns or.
37:37
Whatever. And who's right?
37:39
I have no idea. You know, I couldn't sit here
37:41
and tell you which one's right. Like, no.
37:43
But The thing is, nobody knows. And so I, I think I'm wise
37:46
enough and experienced enough and disciplined enough to admit
37:49
I don't know. And therefore I don't, I don't
37:53
have the struggle she has. I don't, I don't wake up
37:55
wondering if I should sell. I sleep like a baby because I
37:58
know it's going to crash and I just don't know when and I don't
38:01
well at the end. Of the day y'all and land at the
38:03
same place, right? She doesn't sell.
38:05
You don't sell. Well, except sounds like she's,
38:07
first of all, more stressed, and second of all, it sounds like
38:09
she might sell if she chickens out a river.
38:12
Whereas I'm just going to. I'm like, I'll see you in 20
38:14
years and let me know how it went and it will have gone fine.
38:17
Yeah. That's fair.
38:19
OK, We grade these right? Oh yeah, great.
38:21
So, you know, I give it AB plus because I think it's a, it's a
38:27
very good, thoughtful British analysis.
38:32
But I you know, I think the a answer is.
38:34
Did you say British analysis? Yeah, it's a British accent
38:37
analysis. I can't agree with that.
38:40
It sounds so smart. Do we sound smart to them or we
38:43
sound dumb them? I assume we sound dumb them
38:45
because they sound very sophisticated.
38:47
I don't want to insult either of us, but.
38:50
I mean we, you and me. I mean, we Americans.
38:52
Oh, OK, OK, because I was like, we were talking about dad math
38:55
earlier, so I don't know dad tax.
38:58
OK, All right, cool. B Plus good job Anne and Morning
39:01
Brew. She'll be so excited when she
39:02
hears. Yeah.
39:04
Sure. I like life.
39:05
I rate these like, really? These really big personalities
39:08
who will never, ever hear this. Never.
39:11
You never know. Don't.
39:11
Tell themselves too. Yeah, that's true.
39:13
There's some famous people who follow me.
39:14
I'm just shocked. You are somebody.
39:17
Okay, all right, so let's go on to our next, our last segment,
39:20
Money, Money. Jeremy, we had time today.
39:25
OK, we are in the comments section you recently posted,
39:28
we're on, we're on topic today you posted on Instagram about
39:31
the AI bubble hype and the post was titled A crash is coming.
39:35
So do you want to explain what we see in this post and then we
39:38
can see if you had time today? Yes, as the crash is coming, I
39:41
kind of referenced it earlier and that shows the stock market
39:43
like kind of on this exponentially like bubbling
39:47
trajectory. But then it stops midway and
39:49
then it continues with a dotted line that shows the future.
39:53
And it says, but the bottom of the crash might be higher than
39:56
where we are today. Because even though a crash is
39:58
coming, like let's say as I type this, I'm going to Google it,
40:02
the S&P 500 is at 6830. That's just like the the price
40:06
of a share of the S&P 500. You know, maybe the S&P 500 is
40:11
going to go to 8000. And then crashed to 7000, right
40:14
and a crash from 8000 to 7000 would like, I wouldn't be
40:17
running around with the hair on fire and like, Oh my gosh, we
40:19
lost 1000 points the S&P 500, what are we going to do?
40:22
But if you were listening to me 4 seconds ago, 7. 1000.
40:27
Was more than 6800 where it is today, right?
40:29
And so you should listen to me, right?
40:32
Jen's like I was in the bathroom getting coffee and I asked why
40:37
you keep your coffee in the bathroom, Jen.
40:38
She's like these LA apartments are rough.
40:41
You better fill in those plot holes.
40:43
That's right, that top tank is my coffee tank and the bottom
40:46
tank just don't make sure. Yuck.
40:50
We we already had a bathroom etiquette topic last like last
40:54
episode. Episode I was like Oh my God I
40:55
forgot we talked about pooping. I hate.
40:57
It yeah, this is personal pooping club now, so so yeah,
41:02
what's the what's the comment? The Oh yes, that's right now.
41:05
OK, I would like to say I want to preface this.
41:09
I've realized that I can't actually tell when people are
41:11
being earnest in real life apparently, and also in the
41:14
comment section. So you might have to help me
41:16
because you actually respond to this comment term.
41:18
Who said in this example? I advise clients to sell at that
41:21
peak and then buy back at the bottom.
41:23
Works every time. Are they being sarcastic or not?
41:27
So I remember this comment and actually I remember that I know
41:31
the person that I forget actually which person it was,
41:33
but they're 100% being sarcastic because because what they're
41:37
saying is impossible. You can't know ahead of time
41:41
when the peak is and you can't know ahead of time when the
41:44
bottom is right. So in that example, so Andrea
41:46
says a crash is coming. And if I told her, hey, when the
41:49
market hits 8000 crash of 7000, she's like, see, I told you, but
41:54
still the 7000 is more than it is today at 6800.
41:57
So you don't know when that 8000 is going to happen.
41:58
And when it gets there, it might be 10,000 to 6000.
42:00
We don't know, right. And, and you only know with
42:03
hindsight. And when you when you look at
42:04
these charts in hindsight, you're like, Oh yeah, I should
42:06
have sold there and bought there.
42:08
But going forward, like let's say by the end of the year, you
42:11
know, this is airing in mid-december, let's say there's
42:14
a huge crash and it drops 10% at the end of the year.
42:16
That's a big significant crash. Is that the end or is it going
42:20
to crash 50% or 30% or 20%? So you have to know, you have to
42:24
be exactly right twice. You have to know when the top
42:26
is, you have to know when the bottom is and you have to know
42:27
ahead of time and nobody can know that.
42:29
And so you do what I do sleep like a baby.
42:31
Just hold through it and you'd be like, I'll see you at the
42:33
I'll see you on the other side and we can you can laugh about
42:36
how much sleep we got. And so I replied and I said,
42:39
yes, I'm also a brilliant investor after I know what
42:41
happened. That's why I bought Bitcoin at
42:43
six cents because I literally I remember, I remember where I
42:47
was, I was driving on Garnett Ave. in, in PB Pacific Beach,
42:52
San Diego. I was listening to a news story
42:54
about Bitcoin and I went home and I looked it up and there was
42:57
6 cents a coin and I, I literally thought to myself, I
43:01
should buy some this, it's this new weird thing.
43:04
You never know. But then I then I was thought
43:07
about for like another 4 seconds.
43:08
I was like, you know, no, this is some made-up fictional
43:11
cartoon currency. There's no way a Bitcoin could
43:14
ever be worth a dollar. And so my upside is capped
43:17
pretty low. So even if I bought it six cents
43:19
and I went to $0.50, you know, what would I like triple my
43:22
money or whatever. I mean, that's more triple.
43:24
It's like 9X my money or whatever.
43:26
It's not enough to really like worry about how to do this whole
43:28
thing. As you may be aware, it did get
43:31
to a dollar and in fact, it got to $100,000.
43:34
And so buying at six cents and holding to 100,000 would have
43:37
been like instant billionaire territory.
43:39
But I didn't know that right at the time.
43:42
No one thought like everyone thought it was worth $0.06.
43:44
That's what people thought it was worth back then.
43:45
And now apparently people that were things worth 100,000.
43:47
It's very hard to do these things without the benefit of
43:50
hindsight. And so, you know, commentary, I
43:54
know you're kidding. So I give you, we don't rate the
43:55
comments, but I'll give you an A plus.
43:57
And, you know, to everyone, this has been a very AI bubble.
44:03
And now what are we? We usually have three topics
44:05
where it's going to be like AI bubble, the AI bubble and AI
44:08
bubbling like like. That's what we're going to title
44:11
this episode. No, I got 1.
44:13
I actually, I thought I have a funny one, but you've already
44:15
heard it when you're listening, when you're listening to.
44:17
So you already know that's about my voice.
44:20
But we actually record those at the end, so Jen doesn't know.
44:23
Only the listeners know. This is a very weird time warp
44:25
situation. Where it is, it's it's like,
44:27
whoa. Jen's being surprised, but the
44:29
people in the future already know about the past.
44:31
I don't know. Just don't meet yourself or you
44:34
are going to explode. That's the.
44:37
Is it a Back to the Future joke? Yeah.
44:39
Is that what happens if you can't?
44:40
If you meet yourself like then the time like?
44:43
Yeah, he almost kisses his mom. By the way, I'd like to say this
44:47
has nothing to do with personal finance, but I did watch the new
44:49
season of Stranger Things. It's terrible.
44:51
And they made some flux capacitor jokes, and I would
44:54
like to say that they do not have any right to be using any
44:56
flux capacitor jokes. They are not good enough for
44:58
that and they should take it out of the season anyway.
45:01
Yeah, on that Back to the Future note.
45:03
I was like in through like 2 1/2 seasons or something and kind of
45:06
fell off and I feel like I probably made a good decision.
45:08
Don't even worry about it. Yeah OK on that note, we are
45:11
going to read 1 review because we people have been sending
45:14
reviews. We have like 4.9 stars on nice
45:17
app period. OK, so this is from G Thompson.
45:21
He says so far I'm hooked. I've always loved Jeremy's
45:24
advice. Jen and Jeremy are a great team.
45:26
No need to play 2X because they keep the convo going.
45:29
Clap emoji. I'd like to say a couple of
45:30
things about this comment. Number one is five stars.
45:32
Thank you G Thompson #2 he only gave me one NI forgive you
45:36
because you gave us five stars and #3 I think it's funny that
45:39
he said you don't need to play it on 2X because they keep the
45:42
convo going. But really, it's because Jeremy
45:44
and I are both extremely fast talkers and cannot slow the
45:47
train. That's very true and I but I'm
45:50
very flattered by this because I feel like I'm a like all time
45:53
yapper and it's kind of funny in in ChatGPT.
45:57
Do you know that like it's, it remembers things about you and
45:59
then like uses that when it answers it later and you can
46:01
even see what it's from. You can't even see what it's
46:04
using about you. Like one of the things I told it
46:06
is no yapping. I said don't yap.
46:08
I don't because I always ask like what's the, what's the
46:11
capital of Michigan? And they're like founded in 1746
46:15
on the, you know, the. You're like I'm the yapper.
46:18
I know. I'm like, no, just fucking say
46:20
Lansing and be done with it. I'll ask you if I want like a
46:22
story. Wait.
46:24
How can you see what it's using? You go into the settings and you
46:28
go like, you know, Churchy PT settings about me or whatever.
46:31
And then it's got like a list of all the little prompts that it's
46:35
decided to save about you. And so it like, it knows that
46:38
I'm like starting a financial advice firm and knows that I
46:41
whatever I'm tall or whatever it is.
46:43
And then it like then it like uses that and the answers, which
46:46
is like partially cool but also partially terrifying because
46:49
like, what if I'd like poisoned it with like bad information?
46:52
Right. Meanwhile, we we told Andre not
46:54
to use ChatGPT. Here are all the ways that I.
46:56
Used here's Here's your 4 ChatGPT tips of the day.
47:00
Sorry to all you unemployed people who don't have jobs
47:02
anymore. Do AI.
47:03
Oh my. God.
47:05
OK. All right.
47:06
That was great. I feel like we did what we
47:08
could. You know what I'm saying?
47:09
Yeah. Thanks, guys, for listening.
47:12
That's all. We have time for you today.
47:14
We'll see you next week. And don't forget the 2 rules of
47:17
Personal Finance Club. Rule #1 live below your means
47:21
and rule #2 invest early often. And if you wonder if I prerecord
47:24
that little end thing now, you know that I don't, because I
47:26
sound super weird in this one. Yeah, they're probably like,
47:29
he's so perfect, always. Yeah, exactly.
47:32
No one has ever suspected that. Said no one ever.
47:35
Okay, bye guys. See you next week.
47:37
The Personal Finance Club show is produced by Jeremy Schneider
47:39
and Jen Mundia, music by Essa Balu and homie.
47:43
Send your questions to podcast@personalfinanceclub.com.
47:47
The Personal Finance Club show is Co hosted by Jeremy Schneider
47:49
who is a co-owner of Nectarine and SEC Registered Investment
47:53
Advisor. The views expressed on this show
47:55
are those of the hosts and guests and do not necessarily
47:58
reflect the views of Nectarine. Please refer to
48:01
hellonectarine.com for all relevant disclosures.
48:04
This podcast is for informational and educational
48:06
purposes only and should not be construed as personalized
48:09
investment advice or a solicitation to buy or sell any
48:12
security. Listeners should consult their
48:14
own financial, legal or tax professionals for advice
48:17
specific to their situation.