“You spend the first 20 years of being rich accumulating all of this stuff. And then you’ll spend the next 20 years trying to get out of one thing after another to simplify your life.” — Peter Mallouk
Creative Planning provides wealth management services to clients, manages over $36 billion for clients in all 50 states and abroad, and has been featured as the number one independent wealth management firm in America by Barron’s (2017).
Peter is featured in Worth magazine’s Power 100, featuring the most powerful men and women in global finance, the only financial planner on the list (2017 and 2018). Creative Planning was featured in Forbes in 2016 as the number one RIA for growth over the last 10 years.
Peter is the co-author (with Tony Robbins) of Unshakeable: Your Financial Freedom Playbook.
- Listen to it on Apple Podcasts.
- Stream by clicking here.
- Download as an MP3 by right-clicking here and choosing “save as.”
Would you like to hear my interview with investor Howard Marks? — Listen here to learn more about understanding market cycles for making better decisions, the three stages of a bull market, and how Howard cultivates clearer thinking. (Stream below or right-click here to download.):
This podcast is brought to you by 99designs, the global creative platform that makes it easy for designers and clients to work together create designs they love. Its creative process has become the go-to solution for businesses, agencies, and individuals, and I have used it for years to help with display advertising and illustrations and to rapid prototype the cover for The Tao of Seneca. Whether your business needs a logo, website design, business card, or anything you can imagine, check out 99designs.
You can work with multiple designers at once to get a bunch of different ideas, or hire the perfect designer for your project based based on their style and industry specialization. It’s simple to review concepts and leave feedback so you’ll end up with a design that you’re happy with. Click this link and get a free $99 upgrade.
This episode is also brought to you by LegalZoom. I’ve used this service for many of my businesses, as have quite a few of the icons on this podcast, such as Automattic CEO Matt Mullenweg of WordPress fame.
LegalZoom is a reliable resource that more than a million people have already trusted for everything from setting up wills, proper trademark searches, forming LLCs, setting up non-profits, or finding simple cease-and-desist letter templates.
LegalZoom is not a law firm, but it does have a network of independent attorneys available in most states who can give you advice on the best way to get started, provide contract reviews, and otherwise help you run your business with complete transparency and up-front pricing. Check out LegalZoom.com and enter promo code TIM at checkout today for special savings and see how the fine folks there can make life easier for you and your business.
QUESTION(S) OF THE DAY: What was your favorite quote or lesson from this episode? Please let me know in the comments.
Scroll below for links and show notes…
SELECTED LINKS FROM THE EPISODE
- Connect with Peter Mallouk:
- Connect with Creative Planning:
- Unshakeable: Your Financial Freedom Playbook by Tony Robbins and Peter Mallouk
- Money Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins
- The Legendary Tony Robbins Palms My Entire Face, Instagram
- Gold Price History from 30 BC to Today by Kimberly Amadeo, The Balance
- The Federal Reserve Was Created 100 Years Ago. This Is How It Happened. by Neil Irwin, The Washington Post
- The Prophets of Cryptocurrency Survey the Boom and Bust by Nick Paumgarten, The New Yorker
- Walmart Embraces IBM’s Blockchain Tech by Timothy Green, The Motley Fool
- Blockchain, Explained, Investopedia
- The BlackBerry-to-iPhone Switch: Converts Speak by Al Sacco, CIO
- A Quick Guide to Asset Allocation: Stocks vs. Bonds vs. Cash, The Motley Fool
- Money Management vs. Wealth Management: What Do You Need? by Randall J. Richard, Richard Brothers Financial Advisors
- What Are the Traditional and Alternative Asset Classes? by Carrie Smith, Investor Junkie
- The Gay Men Who Have Lived for Years With Someone Waiting on Their Death by Jack Lowery, The Atlantic
- Real Estate Investing: A Guide, Investopedia
- Seth Klarman: Why You Need to Get Used to Holding Cash by Rupert Hargreaves, Guru Focus
- The 10 Worst Corporate Accounting Scandals of All Time
- The Origin of “The Market Can Remain Irrational Longer Than You Can Remain Solvent” by Garson O’Toole, Quote Investigator
- The 5 Mistakes Every Investor Makes and How to Avoid Them: Getting Investing Right by Peter Mallouk
- Common Sense on Mutual Funds by John Bogle
- The Intelligent Investor: A Book of Practical Counsel by Benjamin Graham
- 16 Years Ago Today, Napster Changed Music as We Knew It by Tom Barnes, Mic
- Peter Mallouk Wants a Few Good Advisors, with No Assets by Jane Wollman Rusoff, ThinkAdvisor
- Awareness: The Perils and Opportunities of Reality by Anthony de Mello
- How Full is Your Bucket? by Tom Rath and Donald O. Clifton
- The Prophet by Kahlil Gibran
- Choosing A Financial Advisor: Suitability Vs. Fiduciary Standards, Investopedia
- Find a Local Advisor Near You, Independent Advisor Learning Center
- What are Peter’s thoughts on investing in gold? [06:33]
- How does he feel about Bitcoin and cryptocurrency in general? [11:42]
- An overview of how the stock market works for long-term and short-term investors, and why Peter is good at what he does. [14:59]
- Money managers versus wealth managers and the debate between active and passive management. [23:15]
- Peter shares his insights into alternative asset classes. [28:51]
- What is Peter’s perspective on real estate investment, and why do a lot of people see it as a “safer” option than other investments? [34:46]
- How does Peter feel about investing in art and collectibles? [40:10]
- When illiquidity is a feature rather than a bug that protects against behavioral mistakes. [42:31]
- How do you know when the market is worth waiting out, or if the end really is nigh? Perhaps the real question to ask: is your money worrying you more than it’s worth? [48:19]
- Something even Peter hasn’t seen in 20 years of investing with over 30,000 clients. [58:09]
- When is the risk of being out of the market greater than the risk of being in? [59:59]
- The protective benefits of diversification. [1:02:13]
- Why Peter advises aspiring investors not to expect more from the market than what their day job is giving them. [1:04:07]
- What does underdiversifying look like, and is it possible to overdiversify? [1:05:41]
- “Markets can remain irrational a lot longer than you and I can remain solvent.” [1:08:43]
- How an investor’s style might differ depending on whether they’re using their personal or professional finances, and how much time they or their client can reasonably expect to be alive. [1:11:28]
- Required and recommended reading for active and aspiring investors. [1:13:58]
- What Peter considers his most worthwhile investment of time, money, and energy — and the hard but valuable lesson it taught him about supply and demand. [1:16:21]
- What Peter sees as the biggest — and most common — mistake wealthy people make, and what he does to help them course correct. [1:20:02]
- Books Peter has most gifted. [1:27:05]
- Caution: In the United States, financial advisors aren’t always required by law to have your best interests at heart. Peter explains how you can know for sure. [1:29:20]
- How do Peter and Creative Planning make money? [1:33:40]
- What advice would Peter, now 48, give to his 30-year-old self? [1:34:43]
- How does Peter help clients discover what to hone in on? [1:36:05]
- What would Peter’s billboard say? [1:38:39]
- The deceptively problematic characteristic of “busyness.” [1:40:09]
- Closing thoughts. [1:41:29]