Podcasts about innovative advisory group

Join host Ben Fraser in this riveting episode as he sits down with Kirk Chisholm, Principal of Innovative Advisory Group and host of the Money Tree Investing podcast. Discover Kirk's journey from brokerage houses to pioneering self-directed IRAs and alternative strategies. Hear about his client success stories, the unique investments you can make within your IRA, and Kirk's insights into the broader economy. Connect with Kirk Chisholm on LinkedIn https://www.linkedin.com/in/kirkchisholm/ Connect with Ben Fraser on LinkedIn ⁠⁠⁠⁠⁠https://www.linkedin.com/in/benwfraser/⁠⁠⁠⁠⁠   Invest Like a Billionaire podcast is sponsored by Aspen Funds which focuses on macro-driven alternative investments for accredited investors. Get started and download your free economic report today at ⁠⁠⁠⁠⁠https://aspenfunds.us/report⁠⁠⁠⁠⁠  Join the Investor Club to get early access to exclusive deals. ⁠⁠⁠⁠⁠https://www.aspenfunds.us/investorclub⁠⁠⁠⁠⁠  Subscribe on your favorite podcast app, so you never miss an episode. ⁠⁠⁠⁠⁠https://www.thebillionairepodcast.com/subscribe

In this podcast episode, Keith Weinhold and Kirk Chisholm discuss the differences between real estate and stock investing. Kirk Chisholm is the Principal of Innovative Advisory Group. He provides his perspective as a wealth manager, emphasizing the control and lower risk offered by alternative assets like real estate.  Learn the difference between risk and volatility. We discuss risk-adjusted returns, liquidity, and the importance of understanding and managing risk. The conversation also covers cash flow, dividends, big tech stocks, and private mortgages. Interest rates and inflation—we discuss their future. Kirk believes rates will stay at this higher rate for a long time. Timestamps: The Paradigm Shift in Interest Rates and Inflation [00:00:01] Discussion on the new paradigm of interest rates and inflation and how it affects real estate and stock investors. The Impact of Front Porches on Society [00:01:35] Exploration of the impact of the disappearance of front porches on neighborhoods and communities. The Definition and Management of Risk in Investments [00:05:50] Explanation of how risk is defined and managed in different types of investments, including stocks, real estate, and alternative assets. The difference between volatility and risk [00:10:21] Explanation of the temporary price movements (volatility) and permanent impairment of capital (risk) in different investment assets. The illiquidity of real estate and non-traded REITs [00:13:11] Discussion on the illiquidity of real estate compared to publicly traded markets and the example of non-traded REITs during the 2008 financial crisis. Importance of cash flow and dividends in stock investments [00:15:26] Exploration of the two camps in stock investing: cash flow-driven investors and appreciation-driven investors, and the significance of dividends and cash flow in stock investments. Dividend Stocks and Value Stocks [00:20:17] Explanation of the difference between growth stocks and value stocks, with a focus on dividend-paying stocks. Private Mortgages and Cash Flow [00:21:12] Discussion on the benefits of investing in private mortgages and how it provides a passive income stream. Default Rates on Hard Money Loans [00:25:48] Exploration of the default rates on hard money loans and the industry's approach to mitigating risks for both borrowers and lenders. The new paradigm of interest rates and inflation [00:31:32] Kirk Chisholm discusses the shift in the economic paradigm from low interest rates and inflation to higher rates and a shrinking economy. The impact of higher rates on mortgages and real estate [00:35:39] Kirk explains how higher interest rates affect mortgage payments and housing affordability, leading to a decline in house prices. The consequences of higher rates on corporate America [00:37:48] Kirk discusses how higher rates can impact corporations, particularly those with short-term debt, potentially leading to bankruptcies and market clean-up. Higher rates and recession correlation [00:39:55] Discussion on the correlation between recessions and lowering of interest rates, and why it may not happen in the future due to high inflation. Fed's focus on stable prices [00:42:48] The Federal Reserve's prioritization of stable prices over high employment, within their dual mandate. Interest rates and the economy [00:44:10] The potential impact of higher interest rates on the economy, with a discussion on when the next recession may occur. Resources mentioned: Show Notes: www.GetRichEducation.com/460 Innovative Advisory Group: www.InnovativeWealth.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Keith Weinhold (00:00:01) - Welcome to. I'm your host, Keith White. As a real estate investor, you are highly cognizant of your cash flows to stock investors. Even think about that and how we've now entered a completely new paradigm of interest rates and inflation and how to respond today on Get Rich Education with real estate capital Jacksonville. Real estate has outperformed the stock market by 44% over the last 20 years. It's proven to be a more stable asset, especially during recessions. Their vertically integrated strategy has led to 79% more home price appreciation compared to the average Jacksonville investor since 2013. GPB is ready to help your money make money and to make it easy for everyday investors. Get started at GWB Real estate. Agree that's GWB Real estate. Agree.   Speaker 2 (00:00:59) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is Get rich education.   Keith Weinhold (00:01:22) - What category? From Bogota, Colombia, to Wichita, Kansas, and across 188 nations worldwide. You are back in that abundantly minded place where financially free beats debt free.   Keith Weinhold (00:01:35) - And by now you might have already won the inflation Triple Crown. I'm your host, Keith Wild. Hey, Noah, is this a real estate problem? Philip Gulley, the author of Porch Talk. He said, I believe all that is wrong with the world can be attributed to the shortage of front porches and the talks we had on them. Somewhere around 1950, builders left off the front porch to save money, and we've had nothing but problems ever since. That's just the sort of thing that I think about now as you and I are enjoying the dog days of summer, as I trust that you are, you know, neighborhoods, property, it all used to be more wide open. The Pennsylvania house that I grew up in and that my parents still live in, it has a real front porch. And no one I mean, nobody has fences around their yard either. It is a real lemonade sipping chat with the neighbors vibe there that, well, seems to be more and more of a remnant of yesteryear.   Keith Weinhold (00:02:44) - I mean, gosh, from what I can see, there are more and more gated communities. Uh, people tend to get more concerned about security and that often means that they trade away freedom. Hey, well, our guest on the show today, he hits differently. And you're going to feel that because he's the principal of a firm that helps investors with stocks, bonds and mutual funds, as well as real estate investing. And it's not just REITs, real estate investment trusts, but more than that. And, you know, whenever he and I talk, we tend to get each other thinking in different ways, in shape, each other's opinions somewhat, as you'll probably see again today. He and I disagree on some things and we agree on others. I'm going to ask him about whether or not stock investors even care about cash flow. We'll be sure to get his insights on the direction of interest rates and inflation and more. Well, I'd like to welcome in our guest today he runs innovative wealth.com he's the principle and a wealth manager there at innovative advisory group.   Keith Weinhold (00:03:54) - They're based in Massachusetts but they advise well beyond any state borders. Hey it's been a few years. It's great to have you back. Kirk Chisholm Thanks for inviting me back. Keith. I was a little worried there didn't appear well in your show, but thanks for having me back. Yeah, well, it's been absolutely too long, and I really appreciate your perspective because they're with what you do. You're principal of a company that helps people invest in a big, wide palette of things, from stocks to private mortgages and some things with real estate and elsewhere. So you have this really broad view. So tell us what percentage of your business is is stocks, bonds and their derivative products like ETFs and mutual funds versus everything else? It's interesting because my industry is primarily focused on stocks, bonds and mutual funds. It always has been, probably always will be, in large part because they're easy to sell, They're publicly available information and everyone is can simply just click a button and get it done. So my industry tends to work towards lazy solutions or simple solutions.   Keith Weinhold (00:05:00) - Nothing wrong with that. You just have to know with what you're getting. It's funny, when we started our firm in 2008, we were doing a lot of private mortgages and we talked to the regulators at the time and they said, Oh, well, what percentage of your accounts in alternatives? Because we told them we did alternatives like what percentage of your accounts? And we said, Yeah, somewhere like 40 to 50%. You know, it probably ranges between 40 and 60. You could hear a pin drop in that room. I did pick the lady's mouth off the floor like she couldn't believe that. How quote unquote, risky that is. And she said the first question, she's like, are you serious? Isn't that really risky? And I started laughing and I said, risky? You mean like Worldcom, Enron, AIG, Tyco, You know, like Lehman Brothers, Bear Stearns? They just kept going on and on. She's like, all right, I get the point. And we had to define the concept of risk.   Keith Weinhold (00:05:50) - This is the part that your audience will appreciate, right? If you're investing in a company, it's been screened by the SEC. It's passed certain muster. It's SEC doesn't endorse it, but it's passed certain muster. You say, all right, I feel comfortable that this company's met the minimum criteria. That's not always the case. Right. Companies go bankrupt all the time. And we actually have a spike in bankruptcies most recently because of the economy. But if you look at piece of real estate, I can go walk up and touch it. I can go to the Registry of Deeds and see that I own it. I can talk to the maintenance guy or the property manager and see what's going on and have influence on it. I would say if you know what you're doing, there's a lot less risk. And I would say if you own a piece of gold, what's your risk? I could lose it. Somebody could steal it. The government confiscates it. That's pretty much it, right? It's not going to zero.   Keith Weinhold (00:06:37) - It's not going to the moon. It's just a rock. The way you define risk is really something that a lot of people don't spend time with is managing that risk. So a lot of what we've done is we've looked at it from a different perspective. What is the best investment given the criteria that we have, the markets we're in and the risk available? You know, what is going to do the best considering the risk as an example, Bitcoin or Ethereum or any sort of cryptocurrency, the risk is it could go to zero, right? It's not going to go below zero risk as you lose all your money or you might make 10 or 20 times your money, right? That is also possible. Both scenarios are probably on the extreme ends of probable, but either way, like you have to account for both scenarios and say is it worth it going to zero for me to make X amount of return? If the answer is yes, then it makes sense. If the answer is no, then don't invest in it or invest in a lot less of it.   Keith Weinhold (00:07:31) - So that's kind of how we look at risk and that's why we look across the board for alternative assets. We're very agnostic about the assets because it really just comes down to, is it a good investment or not? That's really the criteria we look at. Risk is what goes beyond the edge of your understanding. Think that's what applies to that conversation that you had that you brought up there earlier. Right. It's largely about one's risk adjusted return. You talk about with real estate how you have more control over an investment because you can get in there and understand it and change the operations of it in order to drive a return. And then stocks have this very efficient market where it's quick and easy to get in and out and things are more liquid. This very efficient market with real estate, there really isn't any app you can go on and be like, Oh, okay, well my duplex was up 3/10 of 1% this past week. That doesn't happen. That's part of the inherent inefficiencies with direct ownership of real estate, of course.   Keith Weinhold (00:08:32) - I would argue the point of efficient markets, the stock market is is not efficient, despite what the academics will tell you. It is more liquid. I would argue that real estate is illiquid, which is good and bad, right? If you need to sell, it's bad. If you're looking to buy and you don't need to buy, it could be really good. Stock market is very different in that it's claimed to be efficiently priced with all the known information at the given time. And the price is the price. And what I would argue is that's an interesting philosophical standpoint, but it's inaccurate, right? Because if all the information was known, then we wouldn't have volatility. But we do have volatility and the stock market is a forward pricing discount mechanism, right? So you look out six months and say, what's the market going to do? That's where the stock prices are six months from now, not today, six months from now. So whatever the market thinks is happening, they think it's going to happen then.   Keith Weinhold (00:09:26) - So if you look at interest rates, which I'm sure we'll get to, they're looking out six months and for the last two years I've noticed on the expectation of the yield curve, it's that, oh, rates are going to drop in the next 3 to 6 months and in 3 to 6 months it's going to drop in 3 to 6 months. Over and over, it keeps pricing out well, another 3 or 6 months. And I think that the market doesn't really look beyond that because it's really hard to predict. First of all, you can't predict the future anyway, but if you're probabilistically, going to try beyond six months is really hard because there's so many things that got to happen that changed the dynamics significantly. Talk about efficiency with stocks. I'm talking about how stocks are efficient and easy to liquidate. It's pretty easy to sell. And then over here in real estate investing, there is no panic selling because it takes quite a while to buy into sell. Therefore, that's some of the inefficiency of real estate compared to stocks.   Keith Weinhold (00:10:21) - We look at that through a liquidity perspective, right? So liquidity can be a good thing or a bad thing because when there's panic, selling, liquidity can lead to greater volatility like we see in stock. Yeah. And I want to point out two things here. So first is there's a difference between volatility and risk. And I think it's really important for people to understand the difference. So volatility is temporary price movements. It's how much the price fluctuates in any given day. Real estate investors don't see this right, But stock investors, Microsoft is up 5% yesterday. Nvidia's up like whatever, 70% of the day or whatever it was, 30 some odd percent in a day. That's volatility, right? You look at stock prices drop 30 plus percent in a short period of time. Technically, that should have been risk because the whole global economy shut down. But it turned into volatility because it went down and it came back up, actually exceeded the price of the start of Covid by the end of the year, which is insane to think about.   Keith Weinhold (00:11:20) - The whole world shut down. People are locked in their houses and yet the stock market is up. That is what I would consider volatility. Now, risk is what I would call a permanent impairment of capital. Now what that means is you buy a Beanie Baby at $100 because you think it's going to be worth a lot more. And then all of a sudden the Beanie Baby bubble crashes and never recovers and it turns into a $100 Beanie Baby into like a dollar. That's a permanent impairment of capital. That is a risk that you're not going to ever get your money back. You buy a I hate to swear on your show, but a beep coin that make up most of the cryptocurrency coins out there. They could all go to zero. I mean, you look at drawing a blank on the one with that. Elon Musk supports the dog dogecoin. Yeah, they claim this zero. It's a socially supported currency, but it doesn't have any value and they all admit it doesn't have any value. It's virtually worthless except for what people are willing to pay for it.   Keith Weinhold (00:12:15) - That has the potential to have risk in it because it could go to zero. But if I'm investing in GE, Microsoft, Apple, Johnson, Johnson, whatever, these companies that produce cash flow, they're solid companies with a long, long track record, they could certainly go to zero, no question. But typically the movements in price are volatility. Risk is when the chairman goes off, steals all the money and moves off to some island and people are left holding the bag saying, what's going on? You know, you look at AIG, Lehman Brothers, Bear Stearns, all those companies that basically made bad decisions, that is risk. That is not volatility. So it's important to understand the differences between the two, because if you don't, most people think of I am managing risk, I'm diversifying. No, you're managing volatility. Managing risk is completely different and you have to use different tools for that. Most people don't manage risk, they manage volatility. The other point I want to make is you mentioned the illiquidity of real estate.   Keith Weinhold (00:13:11) - And I want to point out an example which is kind of bordering the owning your own real estate versus, let's say, a REIT. I remember back in 2008, nine and ten when people were jumping out of the windows because they couldn't get rid of their illiquid non traded REITs. And I'm not a supporter of that of non-trade REITs or people jumping out of Windows. But in general, the non traded REITs market was interesting because technically they said you'd have quarterly liquidity, you could get a quarterly and normal times. That was true. They would just cash you out if you need money. However, when everyone's running for the door at the same time, they can't cash everybody out because they can't sell the property. So what do they do? They lock the doors, locked everybody in to burn alive. Well, the price went from, let's say, hypothetically, $100 down to $10 and people wanted out at any price. It didn't matter. They needed out. They need liquidity. Whatever it was, there were actually markets around.   Keith Weinhold (00:14:03) - You could buy people's shares of these non traded reach for like $0.10 in the dollar and people were willing to pay to discount 90% of the investment where you could have just walked in and purchased it and waited another five, seven years and you could have made 100 cents in the dollar. It's crazy. But that's one of the nice parts about real estate. And I'm using a security as an example because you can do that in real estate. But when you have the publicly traded markets, that doesn't necessarily happen, but it can happen in certain periods of time when the markets are completely irrational and everybody thinks the world is ending. Sure, that's a be greedy when other people are fearful, sort of seeing their I know their IT innovative advisory group. Since you do have this wide palette of offerings, you kind of have this broader view of things. I'm wondering, Kirk, a lot of people in that stock world, many of them concerned with cash flow or it might be dividend there, or are they even as interested in cash flow there with the kind of stock and mutual fund investments as they are over here in the real estate world where we're quite interested in cash flow? And then do they even take the dividends or do they just reinvest them, which is called a drip program dividend reinvestment program? How important is that to investors on the stock side? It's a good question.   Keith Weinhold (00:15:26) - So what tends to happen is people kind of fall into two camps, much like the real estate camp. Some people fall into the. Cash flow camp. Which is your camp? Which is my opinion. I think that's the best way to invest is cash flow appreciation. You're just taking a guess. But there are good amount of people that are appreciation driven. They don't look at cash, so they're happy to make zero cash flow for the expectation They're going to make lots of money and appreciation and look at them like, What are you thinking? Like, what if the cash flow declines? You're going to support the negative cash. Why do you own it? It's silly, but some people think that way. They think, Let's go for the appreciation. Let's roll the dice. Let's go. No whammies, you know? And what ends up happening is these people make mistakes because the real estate market, this usually happens at closer to the tops and people make bad decisions and they realize, oh, crap, I can't make this work.   Keith Weinhold (00:16:16) - I was trying to Airbnb this with a two cap, this not working. So now I need to sell this thing or I'm going to lose my shirt. I had these conversations all the time. So using that as an example, because that's where your audience will understand dividend investors the same. So a lot of people, when they're investing in stocks, they're looking at stocks as a way to make money. Most people want total growth, which really means in their mind, appreciation. What are the stock market do this week? What did it do this quarter? That's all people want to know. Well, what about the dividends? Well, actually, there was a time 40, 50 years ago when dividends mattered, you could get six, seven, eight, 9% dividends. Now, that's absurd to think about that. The only stocks that pay dividends of that nature are stocks that are highly speculative or the dividend is highly speculative. Market typically looks at dividends and if they don't trust the dividend will continue to get paid.   Keith Weinhold (00:17:08) - They'll actually discount the stock, which will make the dividend look real attractive. It'll suck people in to buy it and then they'll slash the dividend back to a rate that's normal. So people looking at dividend stocks, be careful because we're not in that environment where dividend stocks are all that attractive. If I can get a 5% close to zero risk US Treasury bond and I can compare that to a 2% dividend stock, I'll take the Treasury all day because it's close to guaranteed dividend stock. Maybe it goes up, maybe it goes down, who knows? But, you know, ultimately you're trying to solve a problem. The big challenge we have now, is any of this sustainable? Are the cash flows sustainable? Good value? Investors should be looking at cash flows. They should be looking at metrics and trying to find stocks that are at a good price that will pay them a handsome return over time. And the problem is, is we don't live in that environment much like the real estate market. It gets overheated because too many people are chasing too few properties and virtually everyone was putting all their money into 5 to 7 stocks on the Fantastic Seven or the Faang stocks or whatever you want to call it These days.   Keith Weinhold (00:18:18) - That name changes all the time. But the point is, you've got big tech that's driving most of the return this year. Think big tech made up 2,530% of the S&P 500 500 stocks. You have five stocks making up 25 to 30% of the index by size. And by return, it made up think the S&P was up 15%. And these 5 or 7 stocks made up 13% of that 15. Really crazy, crazy to think about. Right. But that's what people look at is the index. And the index is not necessarily accurate, but that's what people look at. So you have to gauge it by that. Most of the marketplace is chasing these appreciation returns. And like you have with real estate, you get the good with the bad, you chase appreciation. You can win or lose. I don't know where the future is going to be, but I know that if I'm chasing cash flow, I'm pretty certain I know where that's going. But if I'm investing in a tech stock that has negative cash flow, I have no idea where that's going.   Keith Weinhold (00:19:19) - Right. Could go up, could go down, who knows? But I look for stocks with good cash flow. I think if you're going to invest well, you want to find a legacy stock that you feel comfortable owning forever. Now, when it comes back to the Fang acronym, I tend to think Nvidia should be replacing Netflix in the Fang acronym about this time. But dropping back earlier when we were talking about dividends, I don't track this very closely, but last I checked, probably last year it seemed like the average dividend paying stock in the S&P 500 was something like 2%. Is that still about right? I think it's actually a little bit lower. I haven't looked at it in the last few weeks because it's gotten so low, it's almost not even worth looking at. I think last year was 1.77. As of right now, it's 1.47 on the S&P 500, 1.5%, which is insanely low for real estate investors. I think of the dividend yield in stocks as being synonymous with the cash on cash return in real estate.   Keith Weinhold (00:20:17) - But you said something earlier about dividends, Kirk, that I actually thought was the opposite way. I thought that dividend paying stocks tended to be kind of those older, stodgy or staid, like a utility company rather than a younger tech. Company. Yes, that is accurate. Yes, Most of the dividend stocks are what we would consider value stocks. So the terms growth, stock and value stock are actually don't mean anything. They're what everyone wants it to mean. What they tend to mean is growth Stocks tend to be stocks that are focused on appreciation. Value stocks are typically focused on cash flows or their stocks that are discounted, and you can buy them for good cash flow. But if you look at a stock like Microsoft, I mean, you got the dividend yield is about 75 basis points, 76 basis points as of today. So you're getting less than 1%. But Microsoft's one of the the Fang stocks, right, or Fang, whatever they're calling it now, they come up with a new acronym.   Keith Weinhold (00:21:12) - But some of these big tech Apple's fang of dividend so some of the big tech actually are paying dividends. Now what we're talking about, the production of cash flow or income from both stocks and real estate here. And one thing that I know you do in there and that you help investors with is private mortgages in producing an income stream that way. Can you tell us more about that? Is that where you have clients where you connect them with ways to make hard money, loans to real estate investors, for example? As we talk about here, I'm a big fan of cash flows and I have a few favorite asset classes and they're not the stock market, right? I love real estate. I love tax liens. Tax lien is by far my favorite. If you can get them the right way and the right price, which you can't, but if you could, that's one of my favorites for many reasons, but one of the ones that we do a lot of are hard money loans or private mortgages.   Keith Weinhold (00:22:05) - The reason I love it is because they're simple. If you're investing in real estate, it's not passive income. It's a business. You have to manage the business. You have a property manager, you've got tenants, you've got expenses, you've got taxes. All this stuff you have to deal with, which is fine. There's nothing wrong with that. But when people invest passively, it's not passive, right? It's active. It just happens to be a different business than one that you're selling widgets out of the corner store. If you're investing in private mortgages, you have to do your due diligence up front. But once you invest in it, you're done until you get paid back. It's like any sort of fixed income. It's a bond. It's fixed income is how I look at it now. For the past ten plus years, you couldn't get any rates on bonds, your fixed income, part of your portfolio, your treasuries, your corporate bonds, whatever you're buying, you're getting close to zero.   Keith Weinhold (00:22:54) - And there was a lot of risk. So we substituted these for our fixed income and you're getting 10 to 15% over the last ten years where the common rates and I like them because you're getting access to real estate. So real estate is backing the note. So it's a mortgage, right? So you're lending somebody else money at, let's say, 12% and they're going to pay you that 12% and give your money back at the end. And if they don't, you get their property. Now, personally, I don't want their property is too much headache because when I got to do foreclosure and go through all that, that's not the point. Some people do. Some people invest in hard money with the assumption they're going to own that property. And it's a great acquisition strategy. If you're so inclined. It's not you know, I have clients. I can't have that kind of business model. It's just too much of a headache for everybody. So we want people that are going to pay and pay on time and people are going to continually come back and I can work with versus having the lender investor that actually helps the borrower default so that they can get the property correct, which like I said, is a great investment strategy.   Keith Weinhold (00:23:55) - It's just not our investment strategy. And I think just like real estate, you can buy foreclosures, you can buy off MLS, you can build. There's so many different things you can do. Same thing with notes with paper. Paper is a great asset class if you know what you're doing. The challenge with private mortgages, hard money now is because everything is so expensive that these investors, these fixed and flippers investors would have. You can't make money. And I know there are people out there that are doing it. So it's not that it's not happening, but anybody I know that's really good at fixing flip or rehabs or things like that in my area, not speaking for every part of the country in Miami, in the Boston area, they're not doing deals because they can't make money. There's no margin of error. If they were to compete and win the deal and they make a mistake, they're going to lose money. They don't want to lose money. So they need to have a big enough margin cushion so that they make a mistake.   Keith Weinhold (00:24:49) - They're still making money. So these people we work with, they're not doing deals because there are no deals to find. So that means there are fewer mortgages times like 2008, nine and ten, we didn't have enough client cash to put to work. Like we had so many notes coming at us we didn't have enough cash to find. Now it's the reverse. There's plenty of cash chasing them and there's not enough notes out there. And a lot of the notes are poor quality because the risk is too high. We want easy. We want somebody paying on time, we want our money back and then go on and do it again. So I love them for cash flow. It's simple and easy and it solves a lot of problems. So this is interesting. If you as a real estate investor have ever taken a hard money loan, you might wonder who the lender is on the other side of that. And that might be someone like Kirk's clients in there where he is. Kirk. Can you tell us more about the default rates on the hard money loans lately? How often do they not get paid back and do they go into default? Yeah, that's a good question.   Keith Weinhold (00:25:48) - So I don't know the industry rates. So we work with a handful of people and that's all we work with, so we know the rates for them. I'll tell you about ours and I'll tell you about the industry a little bit more. So for us, we've done hundreds and hundreds of these things and I would say less than 1% of them have had issue. So we are truly not looking for rates of default. A tornado tore through the neighborhood and tore off the roof. That's an issue. That's not something I can deal with. Right. Guy you're working with dies. It's an issue you got to deal with, right? Like this isn't somebody making a bad deal or run away with the money. This is stuff that you can't predict and is inevitably going to happen in one way, shape or form. So we mitigate the risk as much as possible, but our rates of default or I would say not even default, but just having issue with the loan because most of the stuff it's, you know, maybe discount if you have a something like that, maybe it's your discounting the interest instead of getting the full interest, maybe get partial interest or even no interest, get your money back.   Keith Weinhold (00:26:44) - Like for us, it's like, how do you handle a default is really important because the borrower, there's some risk there, but then there's the lender, there's some risk there. So you have to find a balance that makes everybody happy so that, you know, the borrower is not taking it on the chin because then they're not going to come back. But it's not all in the lender either. So you have to find a balance and work with people. Much like with real estate, you know, you get a bad tenant, so you try to work with them so you still get paid. It's the same kind of thing. But if you look at the industry, the industry is interesting. So I interview a lot of hard money lenders on my show over the years and fascinated to hear what they say and some of the people who do the most or they're in charge of marketplaces of these notes. What they've been telling me for the last few years is think about this way. A lot of these things come from developers or fixing flippers.   Keith Weinhold (00:27:31) - They get their properties out of foreclosure, they get it out of sheriff's sale, they get out of fire or estate sales like these things where they're highly discounted. So during Covid, the courts were shut down for a year and a half. You couldn't get these properties if you were foreclosed on, you couldn't get foreclosed on for two years because the courts weren't open. And when they did open, there was such a backlog of other stuff that was more important than that. They were dealing with like murderers and whatever, rapists, people that actually need to go to jail. And they're not dealing with foreclosures to the same extent. So the courts are backed up for a long period of time. And so when they finally opened up, you start to see a trickle through. You're starting to see more now. But that was a big challenge to the market. So what I've been hearing for the people who are really deep in this market and they see everybody across the board, across the country is they've all said that there's a tidal wave coming.   Keith Weinhold (00:28:24) - And a lot of the problem is, is there are a lot of bad notes out there. So there are people who basically created these notes, right? So they underwrote the notes. They they lent money to somebody with bad terms or is a bad loan like the person should have borrowed or whatever it is, they're still paying. But you see, the quality of the paper is really bad. And what's going to happen is if you see a hiccup in the real estate market, then you're going to see this paper flush through the system because all of a sudden this deal that was marginal is now a bad deal and it flushes through either people default or they sell or whatever. And that stuff has to flush through the system until it does, the market's not going to be efficient. Everyone is waiting around saying, I know there's bad paper out there. I'm trying to find good stuff and it's harder to find, but it's not from a lack of paper, it's from a lack of quality paper. And this happens every real estate cycle.   Keith Weinhold (00:29:19) - Having 2008, nine, ten flushes out the bad people, buy the paper at a discount. You're listening to Get Rejection. We're talking with innovative welcomes Principal Kirk Chisholm when we come back, including his take on where we're going with interest rates and inflation. I'm your host, Keith Lindholm. You know, I'll just tell you, for the most passive part of my real estate investing personally, I put my own dollars with Freedom family Investments because their funds pay me a stream of regular cash flow in. Returns are better than a bank savings account up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited. For some of them. It's all backed by real estate. And I kind of love how the tax benefit of doing this can offset capital gains in your W-2, jobs, income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 668660.   Keith Weinhold (00:30:30) - And this isn't a solicitation If you want to invest where I do, just go ahead and text family to six six, 866. Jerry listeners can't stop talking about their service from Ridge Lending Group and MLS 42056. They've provided our tribe with more loans than anyone. They're truly a top lender for beginners and veterans. It's where I go to get my own loans for single family rental property up to four Plex's So start your prequalification and you can chat with President Charlie Ridge personally, though, even deliver your custom plan for growing your real estate portfolio. Start at Ridge Lending Group.   Speaker 3 (00:31:16) - This is author Jim Rickards. Listen to Get Rich Education with Keith Reinhold and Don't Quit Your Day Dream.   Keith Weinhold (00:31:32) - Welcome back to Get Rich. We're talking with Kirk Chisholm. He is the principal and a wealth manager at Innovative Advisory Group. And I like to chat with Kirk and some of these people that have this bigger picture view where they offer clients stock options, real estate options and more. In Kirk, I know you like to say that we're sort of living in a new paradigm and that people are only just now starting to realize this new paradigm, which has to do with interest rates and inflation.   Keith Weinhold (00:32:01) - So tell us about this new paradigm. Let's take us back a few years. So if you think about what's happened in history, I'm a student of history, much like you are, Keith, You look back in history, it's instructive as to how the future may act, right? It's never going to mirror that because it doesn't happen that way, as I think it was. Mark Twain has said that history never repeats, but it rhymes. I'm not sure if that's actually attributed to him, even though people say it is. But point being is if you look back in history for the pretty much starting in like the 70s, we had a period of time and I'm going to come back to the 70s, but we had a period of time where things were volatile, we had high interest rates and we peaked at 20% rates depending on which rate we're talking about. The 30 year treasuries, I think it hit 15%. Fed funds rate hit 20%. So we had some pretty high numbers. And so the subsequent 40 years, interest rates declined for 40 years.   Keith Weinhold (00:32:56) - If you had bought a 15%, 30 year Treasury in 1980, 1981 and held on for the whole 30 years, you would have made 15% for that whole time. And it bottomed out a few years ago. So think about the 70s. Like, here's the economy, right? I got my hands together. Here's the economy. This is what it looks like, right? It's this size Now. If you start injecting leverage, you get a mortgage on your real estate. That's leverage. The company borrows money. That's leverage. Right? So you're borrowing money. So your borrowing future cash flows to use today. So let's say I own a home outright and I decide, hey, I want to borrow money to go buy a motorcycle, whatever. Okay. Well, I just increased the economy size because I borrowed money, right? So I've increased the amount of money in circulation from 1983 81 until pretty much a few years ago, the interest rates went from a high amount of 20% down to close to zero.   Keith Weinhold (00:33:51) - Now, the lower the interest rates, the more you can borrow. So if you think about the economy, it kept increasing as rates drop because you can borrow more and more money. Now, how much money can you borrow? A 0%. Keith An infinite amount, in theory, yes. As much as they'll give you. And how much? If it's negative, I don't know. I'm going to borrow a bunch of people and borrow their money like and we get into this crazy period we had a few years ago where there actually negative rates in Japan still does. But the point is, is the lower the rate, the bigger the economy can be because you're allowed to leverage more and it means you can borrow more money and use that money for other things. And now that's a problem because you're borrowing future cash flows to use today. So at some point you got to pay that back one way, shape or form or another. The thing is, is that is increased the size of the economy over this time.   Keith Weinhold (00:34:37) - So the paradigm from the early 80s until a few years ago was one of leverage and growth. And there's a lot of things went into that globalization, outsourcing to China and Asia, technology, all these things influence this growth of the economy. But then in 2021, we hit the lowest rates. We hit mortgage rates at 2.5%. Fed funds rates were low, Treasuries were low, and they started raising rates in 2022. So the economy now started to shrink because you can borrow less. Now, it didn't actually shrink, but I'm using this for illustrative purposes. So if I'm looking at this big, huge balloon and think of it as a balloon, right? You start as there's no air in it, you blow it up with air, you get this huge balloon. Well, as rates go up, you start to let air out of the balloon because you can't sustain high interest rates because it comes down to cash flow. So what ends up happening is as rates go up, the economy effectively starts to shrink over time because if low rates help it expand, higher rates will contract it.   Keith Weinhold (00:35:39) - But it doesn't happen today or tomorrow. It happens over years, as the economy did in the last 40 years. So the paradigm we had changed two years ago and now we have high interest rates and the economy is shrinking to acclimate to this new higher rate environment. So you could have bought mortgage for 2.5% for 30 years on the house. You bought a $500,000 house, 2.5%. You probably would have paid, I think, $3,700 a month rate. You're paying $3,700 a month. That's where you can afford. And most people were doing that, so they bought as much as they could afford. However, now mortgage rates are seven and a quarter at seven and a half. That $3,700 a month mortgage is now doubled. So now you're looking at about a $7,400 a month mortgage. I can't afford $7,400 a month, so I can't buy that same price house. Now, the house price to accommodate that has to decline. And I'm using real Estate Illustrated because it also I'll tell you in a minute so the house price has declined to accommodate that higher payments because people can only buy what they can afford.   Keith Weinhold (00:36:43) - Now take that illustration and overlay that into corporate America, because companies do the same thing. They borrow as much as they can get away with. As you say, with mortgages, it's fixed. It doesn't affect me because it's fixed. And same thing with corporations doesn't affect me. It's fixed. That's correct. Which is why it doesn't impact the economy immediately. But it does impact it over time because with the 30 year mortgage, you never have to move. But if you do have to move, you're in trouble. If you own commercial property, you don't have 30 years, you might have a five or a ten year mortgage, which is going to roll at some point in time and hopefully rates are lower. But if they're not now, you've got some explaining to do, right? In corporate America, there's a lot of companies that get, you know, short term debt that's going to roll over at a higher rate. How are they going to afford it? Johnson, Johnson, Apple, Microsoft, they can afford it, but can borderline junk bonds, companies that are low quality, that are just making it, barely making it buy in cash flow because they can borrow money? What about them? Well, they're going to be forced to make hard decisions or go into bankruptcy.   Keith Weinhold (00:37:48) - So what higher rates do? It basically cleans up the economy by taking out the inefficient players and forcing some into bankruptcy, foreclosures, whatever it may be, it effectively will clean up the market, but it also caused the economy to shrink. So it destroys capital. And if we have rates that are higher for longer than, let's say a few more months, if they're higher for 5 or 10 years, it's going to be a problem. And I think we're going to have higher rates a lot longer than most people think. The market is predicting another six months they're going to drop rates. They've been saying that for the last year. So I don't think they're accurate. I think it's going to be at least a year, maybe two, and then we'll see what happens. Hard to see that far out, but people need to be become acclimated to these higher rates for a while because if you look at historically, these aren't that high. Their average rates. Yeah, they're right in the mean like we're not high historically.   Keith Weinhold (00:38:43) - If you look at bond yields I mean you look at late 90s, you've got up to 6%. I think you've got to 6 or 7% and depending on what you're investing in. So we are not high and default rates are not high. Default rates for high yield bonds historically are 7%. I think we're like 1% like last 15 years. So the numbers that we saw were extreme examples of the economy. And we're going to find a happy balance somewhere. And I don't know where that is, but this new paradigm is about reassessing the assumptions you're making about your investments, about the economy and any assumption what are interest rates going to be? What's inflation going to be? These are things that people never even thought of. They just assumed, Oh, inflation is going to be 3%, I'll just use that. Or interest rates, they're going to be similar. You can't make those assumptions anymore. You have to have broader. Lateral testing of whether this is going to work or not. You've done a great job of breaking down that new paradigm where basically that 40 year period from 1981 to 2021, we had gradually declining interest rates and something in 2021, that's where things changed and we entered into a new paradigm of increasing interest rates.   Keith Weinhold (00:39:55) - So as we're winding down here, you stated you think that we will have persistently higher rates for quite a while. So many people have been saying a recession is just around the corner for so long. It's sort of annoying to really think about it. But as we know, with the recession, that generally correlates with a lowering of interest rates. But you don't see that happening by next year, say, with a lowering of interest rates that corresponds with a recession. What you said is recessions typically correlate with lower rates. You're correct. But what if they don't? I'll give you some examples here of why things are different and why it matters. So if the last 20 plus years, if we had a recession or even a sniff of a recession, the Fed would drop rates, print money, they would boost the markets back up. Everything would be fine. Right. Problems solved. Right? The world's going to end. Don't worry. Here comes the Fed to the rescue. They did that for 20 years.   Keith Weinhold (00:40:49) - But now we have high inflation. So with high inflation, they can't do that because if they do that, it causes inflation to spike, much like the 70s. Now they're not oblivious to the 70s. They know full well what happened and they don't want to repeat it. What they're saying has been pretty clear. We're going to make sure we kill inflation. We don't want it coming back. It is very probable that we have inflation dipped down into two even 0% this year. There's the probability is low, but it's probability we could hit 0% inflation by the end of the year. However, I don't think it's going to stay there because we tend to get a bullwhip effect, which we've seen in many commodity prices, lumber in particular, where the prices go up and then too many people, they make too much lumber to sell and then there's a glut and then it goes lower and then it goes higher because, you know, so you get this bullwhip effect, which is a problem which caused and it's the same thing with inflation, right? You get this bullwhip effect because the changes have been too drastic that people can't adjust, so they over adjust, are under adjust, and that causes this big change.   Keith Weinhold (00:41:50) - So I think we're going to have a dip back to inflation, probably not 8%. But when that happens, they're going to have to come back and raise rates. So what they're trying to do is they're trying to keep rates higher, longer to make sure inflation doesn't come back. We're really in this back and forth of where are we going to go, where's the Fed going to take us? And if it tends to be five years of high rates, that's going to really impact the economy and eventually we will hit a recession. But I think the probability is showing very low probability of recession anytime soon because it's not playing out in the data. Some data is showing yes, some data is showing no. But when I start to see that, it means it just doesn't matter. It's not going to show up. Well, that's some good perspective, Kirk. CPI inflation peaked at.   Speaker 3 (00:42:36) - 9.1%.   Keith Weinhold (00:42:37) - A little over a year ago. It's at 3% now. But yeah, one place where I agree with you, Kirk, is, yeah, the Fed sure does not want to see that pop back up again.   Keith Weinhold (00:42:48) - And within the Fed's dual mandate of high employment and stable prices, it seems like they're prioritizing stable prices over keeping employment high, that's for sure. Well, yeah, there's been a great wide ranging chat.   Speaker 3 (00:43:01) - With interest.   Keith Weinhold (00:43:02) - Rates.   Speaker 3 (00:43:03) - Inflation stocks, real estate and producing income from both of them. Kirk If our audience wants to reach out to you or learn more about what you do, they're at Innovative Advisory Group. How can they do that?   Keith Weinhold (00:43:15) - Thanks, Keith. So yeah, the best way people can find me, I'm really easy to find. They can go to my podcast, Money Tree. Podcast. Com. We have two shows a week. One show we interview really intelligent investors like Keith, for example. We have the second episode is really more of a timely what's going on the markets this week, what's new, what's changed? Just so we can kind of keep people up to date with what's going on and if people are really looking to find out more about me and my services, you can go to Innovative Wealth and I've written all the blog posts there, but our company provides wealth management services for people, whether it's financial planning or portfolio management.   Keith Weinhold (00:43:52) - That's a lot of what we do. So like I said, I'm easy to find and I'm pretty easygoing guys. So if you're interested, you can find me there.   Speaker 3 (00:43:58) - Kirk Chisholm, Innovative Wealth. It's been great having you here. Thanks so much for coming on to the show.   Keith Weinhold (00:44:04) - Thanks for having me, Keith.   Speaker 3 (00:44:10) - Yeah. Well, Kirk Chisholm, he thinks that higher interest rates will linger longer. And he told us why. Now, Historically, it takes 3 to 5 quarters for interest rate hikes to hit the economy. Rate increases begin in March of 2022, but Americans are sitting on lots of cash. So many think that this recession that's perpetually just around the corner won't begin until at least next year. One benefit of a recession coming is that people will stop spreading undue concern.   Keith Weinhold (00:44:45) - About.   Speaker 3 (00:44:45) - A recession Coming Coming up here on the show, lots of great real estate investing strategy sessions forthcoming, not just big picture impacts like the direction of rents, home prices and interest rates, but also how to improve your operational efficiencies, like how to tamp down on higher property insurance premiums and more including what today's market for new build for plex's like investing in America's intermountain West and more.   Speaker 3 (00:45:14) - Until next week. I'm your host, Keith White. Don't quit your daydream.   Speaker 4 (00:45:21) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.   Speaker 3 (00:45:50) - The preceding program was brought to you by your home for wealth building. Get rich education.    

 On this episode of the Shed Geek Podcast Shannon speaks Kirk Chisholm at Innovative Advisory Group.  Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group. His roles at IAG are co-chair of the Investment Committee and Head of the Traditional Investment Risk Management Group. His background and areas of focus are portfolio management and investment analysis in both the traditional and alternative investment markets.Kirk has been providing wealth management services to individuals, executives, entrepreneurs, and their families, as well as businesses and organizations since 1999. Kirk is dedicated to developing lasting relationships with all of his clients. One of the benefits of working with Kirk is his patience and his ability to provide clear, easy to understand explanations of all financial options.Prior to integrating with Innovative Advisory Group in 2008, Kirk founded Stirling Global Advisors, LLC in 2005, a full-service private wealth management firm. Kirk has also held wealth management roles at both UBS PaineWebber and Smith Barney. Also, find out how the podcast can be heard throughout the plain communities by dialing the number 330-997-3055. If the number is busy, just dial again! For more information or to know more about the Shed Geek Podcast visit us at our website.Follow us on Twitter, Instagram, Facebook, or YouTube at the handle @shedgeekpodcast.To be a guest on the Shed Geek Podcast visit our website and fill out the "Contact Us" form.To suggest show topics or ask questions you want answered email us at info@shedgeek.com.This episodes Sponsors:Studio Sponsor: Union Grove LumberMini Barn Audio: Joey PivotliftHigh Barn Audio: My ShedHigh Barn Audio: Backyard FinanceMini Barn Audio: RTO NationalMini Barn Video: Troyers Websites of TexasHigh Barn Video: Backyard FinanceHigh Barn Video: RTO National

Kirk Chisholm of Innovative Advisory Group and the host of the Money Tree podcast shares some controversial viewpoints that may have grownups questioning the market assumptions we take for granted. For more information, visit the show notes at https://www.bobbirebell.com/podcast/kirk-chisholm

The economy is rough today, but it is not as bad as it could be. But how will inflation affect us? In today's episode, Scott Carson talks with financial advisor and investor Kirk Chisholm from the Innovative Advisory Group about the current markets, inflation, and how it is affecting the United States market. Kirk also shares his insights on investing using self-directed IRA's and how he is working to hedge his bets from the chaos of the market. Want to talk to Scott? Book a call with him HERE.http://talkwithscottcarson.com/Love the show? Subscribe, rate, review, and share!Here's How »Join the Note Closers Show community today:WeCloseNotes.comThe Note Closers Show FacebookThe Note Closers Show TwitterScott Carson LinkedInThe Note Closers Show YouTubeThe Note Closers Show VimeoThe Note Closers Show InstagramWe Close Notes Pinterest

BIO: Kirk Chisholm is a wealth manager and principal of Innovative Advisory Group and Host of the popular podcast Money Tree Investing. STORY: Kirk shares his thoughts regarding the current status of the global markets. LEARNING: Always check your assumptions. Cash is now safer than bonds. Now is not the time to buy.   “Everything you think you know about investing is now wrong.”Kirk Chisholm  Guest profilehttps://www.linkedin.com/in/kirkchisholm/ (Kirk Chisholm) is a wealth manager and principal of https://innovativewealth.com/ (Innovative Advisory Group) and Host of the popular podcast https://moneytreepodcast.com/ (Money Tree Investing). He and his firm specialize in Risk Management, Inflation, Self Directed IRAs, Alternative Investments, and advanced tax strategies. They truly are outside-the-box thinkers in everything they do, and as you will hear on this show, Kirk is a unique and all-around interesting guy. Worst investment everKirk is not new to the My Worst Investment Ever podcast. He made a previous appearance on https://myworstinvestmentever.com/ep138-kirk-chisholm-staying-in-your-comfort-zone-is-not-bad-at-all/ (episode 138). You can go back and listen to his experience of investing internationally in a Chinese coal company. Today he doesn't delve into his investment mistakes but rather shares his thoughts regarding the current status of the global markets. We come to our opinions by someone else giving them to usKirk believes that we form our opinions based on other people's points of view. You may imagine that you think independently, but that's actually not true. What happens is you do something, and your brain justifies it afterward. When you form an opinion, most likely it's after listening to someone else's point of view. For instance, you may have been watching the news and then forming an opinion. That's how our brain works. When you understand this, you'll be able to look at the world differently. There is a paradigm shift going on in the marketsA paradigm shift is happening in the markets, and most people either aren't aware of it or they're not respecting it. For the last 40 years, we've had declining interest rates and declining inflation. In the US, interest rates and inflation peaked in 1981 and have been going down for 40 years. In the last 40 years, we've had an enormous bull market in bonds, stocks, real estate, and pretty much everything. We've had asset growth, wealth creation, and abundance across the spectrum for the last four years. However, this year the paradigm has changed. We have inflation at eight and a half percent, and the old paradigm won't work in this type of market. The old paradigm supported the buying and holding strategy and viewed cash as bad. This strategy, however, doesn't work in a recession or a bear market. It's just a great strategy during a bull market. Always check your assumptionsInvestors have been making assumptions based on the 40-year market. In large part, investors assumed that real estate always goes up, which was wrong. This assumption caused the whole system to implode. So we always have to check and reassess our assumptions. Better still, if you understand the inflation part, you're gonna be so far ahead of everybody. Cash is now safer than bondsBonds have moved from a safe investment to a risky one. Cash is now safer. Stay away from the growth areas and focus more on the value areas because value tends to do well in recessions. This doesn't mean you won't lose money. It just means you'll be safer. Real estate is really dangerousThe biggest problem with real estate is that it's illiquid. If you're a homeowner and don't need to move in the next five to ten years, you have nothing to worry about as long as your mortgage is fixed and not variable. You'll still be fine if you get to 50% interest rates. However, if you plan to move in the next five years, sell now and rent. Is now the time to buy?Kirk has been through the ups and downs

Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group. His roles at IAG are as co-chair of the Investment Committee and Head of the Traditional Investment Risk Management Group. His background and areas of focus are portfolio management and investment analysis in both the traditional and alternative investment markets. In this episode, he explains that risk management involves identifying all of the risks involved with a particular situation, mitigating as many as possible, and being comfortable with what remains. He talks about how different levels of investors have different challenges, and how being comfortable with what's left over after mitigating risks is key in investing. He provides an example of how risk management can be applied to a real estate investment.[00:00 - 03:24] Opening SegmentIntroducing Kirk to the show!Kirk shares his insights about risk management, where he has changed the formula for how a firm deals with commercial real estate investments by focusing on risk management[02:25 - 19:05] Identifying And Mitigating Risks With InvestmentsWhat is risk management?He discusses the framework for risk managementThe secondary framework is called TLC (Transparency, Liquidity, Custody)Liquidity is a huge part of risk managementWhen there's a liquidity crisis[19:06 - 28:16] Invest With A PurposeKirk discusses the problems faced by real estate investors, namely that it is a cash flow problemWarren Buffet's mindsetHe discusses the three categories of investorsHave a purpose in their lives[28:17 - 44:07] Closing SegmentKirk recommends that people reach out to him for advice on how to invest their money in ways that will preserve it and ensure that their grandchildren will have enoughSee the links below to connect with Kirk! Quotes:"Liquidity is a huge part of risk management in understanding how liquidity plays into what you're doing.” - Kirk Chisholm"No matter what you have, you can't mitigate them all. You have to find an acceptable level of risk." - Kirk Chisholm“When we're looking at real estate, we don't look at appreciation...What I would say to investors is to do their due diligence.”  - Kirk ChisholmConnect with Kirk through LinkedIn & Innovative Advisory Group! Connect with me:www.5talents.capitalLinkedInInstagramWatch 5TCRE on YouTubeLeave us a review and receive your free ebookEmail us --> abel@5tcre.com5 TALENTS CAPITAL | ABEL PACHECOIf you are ready to start your investment journey with 5 Talents Capital, here are the next steps you should take:View our informational video and case study at https://5talents.capital/grow-your-wealth/After viewing the video follow the prompts which will lead you to a scheduling link to meet one on one with Abel Pacheco. Register for our investor portal here investor portal once registered you will be able to review some of our past deals and you will receive alerts for upcoming investment opportunities.Support the show

Wealth Management   Do you know your money mindsets and how they affect your ability to build wealth over time?   Take away: Understand that the world is abundant and the more you look at the world through an abundant lens the more it will give back to you.   Action step: Improve your mindset and understand yourself.   Money Learnings: Kirk did not learn anything about money from school because back then money is not something to talk about.    Bio: Kirk Chisholm is a Principal and Wealth Manager at Innovative Advisory Group, an independent RIA (Registered Investment Advisor) located in Lexington, MA. He has been providing financial advice to individuals and families since 1999. Kirk's influence and innovation has promoted change in many areas of the wealth management industry.   Kirk provides a different perspective on many commonly held beliefs when it comes to portfolio management, retirement investing, financial planning, inflation, economics, and other personal finance topics. His rare expertise with alternative investments held in self directed IRAs has helped many investors invest in their passion.   Kirk is an experienced media personality. He is frequently quoted and interviewed by industry media outlets in print, audio, and video media formats. He writes frequently for industry publications and major media publications. He frequently appears as a guest on various podcasts. Kirk was acknowledged as the #7 most influential financial advisor on Investopedia's top 100. Investment News named Kirk as one of the top 10 social media allstars in the financial services industry. You can find many of his media appearances here.  Highlights from this episode: Link to episode page   How Kirk got into wealth management Kirk talks about managing risks Advice for how people should think about inflation Kirk discussed the velocity of money The cost of technology continues to go down but other cost skyrocketed Lessons learned from his podcast ‘The Money Tree Podcast' Company website: www.innovativewealth.com https://moneytreepodcast.com/ Free gift for your show's listeners https://www.innovativewealth.com/financial-resilience   Richer Soul Life Beyond Money. You got rich, now what? Let's talk about your journey to a more purposeful, intentional, amazing life. Where are you going to go and how are you going to get there? Let's figure that out together. At the core is the financial well being to be able to do what you want, when you want, how you want. It's about personal freedom!   Thanks for listening!   Show Sponsor: http://profitcomesfirst.com/   Schedule your free no obligation call: https://bookme.name/rockyl/lite/intro-appointment-15-minutes   If you like the show please leave a review on iTunes: http://bit.do/richersoul https://www.facebook.com/richersoul http://richersoul.com/ rocky@richersoul.com   Some music provided by Junan from Junan Podcast   Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.  

Cryptocurrency has been one of the most popular topics in the financial media in the last few years. It is a transferable digital asset or digital form of money exclusively available online based on blockchain technology. My guest today, Timothy Picciott CFP® CRPC®, Wealth Advisor in Innovative Advisory Group, is a pioneer in cryptocurrency wealth management solutions. He works with Bitcoin and cryptocurrency early adopters to give innovative financial planning solutions, enabling them to pay a minimum tax on their highly appreciated asset as legally possible, while also educating crypto fans on investing in "Crypto IRAs" through self-directed IRAs and 401(K)s.   [03:19] Tim's story – Tim shares details about his career and how he came to be in his current position. [10.48] Fiat Currency - Tim expresses his thoughts about the evolution of fiat currency. [14:41] Bitcoin and Blockchain – Tim elaborates on his views on Bitcoin and blockchain technology. [16:57] Opinions – Tim discusses the significance of studying Bitcoins properly and thoroughly. [22:11] Double-Spend Problem – Tim explains Bitcoin's potential of solving the double-spend problem. [27:58] Tech Aspects – Tim goes into greater detail on the technical aspects and benefits of Bitcoin. [31:00] Electricity - Another objection leveled with Bitcoin is the electricity required to mine them. Tim evaluates the effect of power on bitcoin mining and the resulting implications. [34:43] Smart Contracts – Tim discusses how smart contracts enabled by blockchain technology have the potential to transform lives. [36:00] Geopolitical Implications – Tim shares his insights on current world trends along with his take on the US and China's movements on Bitcoin. [46:59] Future of Bitcoins – Tim goes to great length on his predictions for Bitcoin's future.   Resources: Connect with Tim: Website: thelibertyadvisor.com Website: innovativewealth.com LinkedIn: linkedin.com/in/timothy-t-picciott-cfp%C2%AE-crpc%C2%AE-547b0b8/ Instagram: @the_liberty_advisor Podcast: The Liberty Advisor Show W/ Tim Picciott: podcasts.apple.com/us/podcast/the-liberty-advisor-show-w-tim-picciott/id1238430499   Mentioned in the episode: Ep #107 - Central Bank Digital Currency: Dangers & Possibilities with J Scott Christianson: growmoneybusiness.libsyn.com/website/ep-107-central-bank-digital-currency-dangers-possibilities-with-j-scott-christianson

The Marcus Garrett Show is made possible thanks to our partners. Partners like Jeremy Schneider of @PersonalFinanceClub: How to Build Wealth with Index Funds. Hear our interview and learn more at themarcusgarrett.com/investwith/personalfinanceclub  Kirk Chisholm, a Wealth Manager and Principal at Innovative Advisory Group (innovativewealth.com), joins me on the show to share why Your Home Is Not An Investment (it is a personal expense). “If you rent a home, it is an expense. When you buy a home, it is an expense. Only when you buy a home and rent it out to a third party does it become an investment.” “The Purpose of Wealth is to buy back your time.” Watch these interviews by topic at YouTube.com/TheMarcusGarrett Self-Directed IRAs: One of the Greatest Tools of Wealth Creation and Preservation That Exist (video available Nov 8th) Your Home Is Not An Investment (video available Nov 10th) The Purpose of Wealth (video available Nov 12th) The Marcus Garrett Show is for informational and entertainment purposes only. We do not offer investment advice and you should not constitute any conversations on the show as investment advice, legal, tax, or financial advice. You alone assume the sole responsibility for fully evaluating the merits and risks associated with the opinions we provide. When in doubt, consult with a certified financial planner, legal, or professional tax advisor who can provide expert advice on your unique situation.  This description may contain affiliate links, which means that if you click on one of the product links, I'll receive a small affiliate commission at no cost to you. These affiliates help support The Marcus Garrett Show and allow guests and I to continue to make free content. Thank you for your support!

Kirk Chisholm is a Wealth Manager, Economist, and Principal at Innovative Advisory Group.  His background and areas of focus are portfolio management and investment analysis in both the traditional and alternative investment markets. Since 1999, Kirk has been providing wealth management services to individuals, executives, entrepreneurs, and their families, as well as businesses and organizations. Over the years, he has been highly dedicated to developing lasting relationships with all of his clients. One of the benefits of working with Kirk is his patience and ability to provide a clear and easy to understand explanation of complex financial concepts.Prior to integrating with Innovative Advisory Group in 2008, Kirk founded Stirling Global Advisors, LLC in 2005, a full-service private wealth management firm. Kirk has also held wealth management roles at both UBS PaineWebber and Smith Barney.Listen in as they discuss:How Kirk got into wealth management.The reasons why his business is innovative in wealth management.Lack of advertisement as the reason behind the limited knowledge of RIA.Some of the things that put people at risk when investing in real estate through an RIA.Questions that should be asked about alternative investments.Some of the challenges that are observed from RIA clients.How to do smart investing.And, more!TIP OF THE WEEKMark: My tip of the week is learn more, go to innovativewealth.com and also, do check out the Money Tree Podcast.Scott: Sometimes you have to move files from one computer to another, or you have to move files from your phone or iPad to a computer. Macs sometimes have Airdrop but it's not always convenient so check out SnapDrop.net. All you do is open it up on your browser and you'll see this in the middle of your computer that says Coral Pipe (maybe your says something else), and what will happen is, if I go to another device around me like my phone for example, and go to SnapDrop.net it will now see through the internet connection the other computer. If I drop a picture or file through there, it will move it to the other device seamlessly.Kirk: The one thing I think that has been the most productive for me this year is the book called The 12 Week Year by Brian P. Moran. It is so good, it helped me basically take a full year's worth of productivity and jamming into one quarter. I got all my year goals accomplished this year in the first quarter, it was amazing and I'm still shocked that I was able to do that. That is one of the books that I love and I'm spending the next two weeks re-reading it again to make sure I can do it again this year.WANT TO LISTEN MORE?Did you like this episode? If so, tune into another one of our exciting episodes with special guest Omar Khan as we discuss how to get a passive return on your investment.Isn't it time to create passive income so you can work where you want, when you want and with whomever you want?

Kirk Chisholm is a wealth manager and outside the box thinker who provides a different perspective on many commonly held beliefs in personal finance. He has worked in the wealth management industry for over 20 years. He has a rare expertise with alternative investments held in self-directed IRAs which has helped many investors invest in their passion. He was recently ranked #7 on Investopedia's top 100 most influential financial advisors. and has been featured in a number of major media publications. Visit Kirk Chisholm at https://innovativewealth.com We also recommend that you listen to the Money Tree Investing Podcast! - - - Listen to our podcast on your podcast app by going to: Bernielies.com Get your news from Ground News ground.news/gml Need someone to talk to? Betterhelp.com/gml Interested in learning how to Day Trade?  Mastermytrades.com Support the show and join the live group! Patreon.com/goodmorningliberty Like our intro song? Listen to "3 Pill Morning" on Apple and Spotify https://www.3pillmorning.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Trying to predict the future is counterproductive. Instead of worrying about what is going to happen, ask yourself how you would handle a situation if it does happen. In this episode, Greg DuPont is joined by Kirk Chisholm, wealth manager and principal at Innovative Advisory Group. Greg and Kirk dive into how to be financially … Continue reading 18. Being Ready for the Unexpected →

Today we are joined by Kirk Chisholm. He is a principal wealth manager at Innovative Advisory Group located in Lexington, Massachusetts. He has been providing financial advice to individuals and families since 1999 and is also a host of the Money Tree Investing Podcast. He is here today to offer us his advice about personal finance as contractors to set ourselves up for success financially. --- Send in a voice message: https://anchor.fm/howtohardscape/message

Today's guest on the Expat Money Show is Kirk Chisholm, Wealth Manager and Principal at Innovative Advisory Group. He has over 20 years of experience managing money for High Net Worth individuals and their families. He has successfully navigated his clients through 2 bull markets and 3 bear markets using his “risk management first” philosophy, and he is probably the only financial advisor you will ever meet who uses this advanced money management technique. He is also the host of the https://moneytreepodcast.com/ (Money Tree Podcast), one of the longest-running investing podcasts in the world, and I am very honoured to be able to say that I have been a guest on his podcast and it was a fantastic experience. You can listen to the https://moneytreepodcast.com/offshore-investing-life-as-an-expat-mikkel-thorup/ (episode HERE.)   TOPICS DISCUSSED IN DETAIL IN THIS INTERVIEW:How Kirk learned risk management quickly and 1st hand as a new advisor Make money when the market goes up and not lose money when the market goes down What is risk management? Scenario-based thinking versus outcome-based thinking Asset allocation Options Risk allocation Stop loss Alternative assets Gold/Silver Real Estate & Cashflow FANG stocks   HOW TO REACH KIRK CHISHOLMhttps://www.innovativewealth.com/ExpatMoney (https://www.innovativewealth.com/ExpatMoney)   RELATED PODCAST EPISODEShttps://expatmoneyshow.com/captivate-podcast/rachel-marshall/ (103: Whole Life Insurance For Multi-Generational Wealth – Rachel Marshall) https://expatmoneyshow.com/captivate-podcast/ep-092-rich-checkan-gold-in-an-international-portfolio-why-its-more-important-today-than-ever-before/ (092: Why Gold In An International Portfolio Is More Important Than Ever Before – Rich Checkan) https://expatmoneyshow.com/captivate-podcast/grant-cardone-how-millionaires-think-developing-millionaires-mindset/ (075: Grant Cardone – Developing a Millionaires Mindset)   FINAL THOUGHTSWhat a fascinating interview with Kirk Chisholm, and what a smart investor. Truly, if you're looking for someone to manage your portfolio, I would highly recommend you reach out to Kirk today, he's got some really brilliant ideas.   Support this podcast

Tom McIntyre of McIntyre, Freedman and Flyn says in the Market Call that the wild swings in headlines running from the tumultuous election through the pandemic and the twists and turns of the economy have left investors with few signals to read. He sees the market hibernating while investors try to figure out how to decipher signals, and expects a slow fourth quarter and start to 2021, and he suggests holding more cash than normal while waiting for it to play out. In the Big Interview, Kirk Chisholm of Innovative Advisory Group discusses modern portfolio theory, the 4 percent retirement-spending rule and other basic tenets of personal finance and discusses why those old saws don't serve investors so well any more. Also on the show, David Trainer of New Constructs explains why BOX belongs in the Danger Zone, and Chuck answers a question about funds based on the social (ESG) version of the Standard and Poor's 500 Index.

Kirk Chisholm, a well know pioneer in the wealth management industry, explains the advantage of Self Directed IRAs to Jordan Goodman in this interview. He also talks about how to find alternative investments that can diversify a typical portfolio of stocks and bonds. He also speaks about the pros and cons of different forms of real estate investing. Bio: Kirk Chisholm is a Principal and Wealth Manager at Innovative Advisory Group, a Registered Independent Advisory in Lexington, Massachusetts. Kirk's influence and innovation has promoted change in many areas of the wealth management industry. He is the author of the Quick Start Guide to Self Directed IRAs and The Ultimate Insider's Guide to Self Directed IRAs. His website is www.innovativewealth.com Free Report: https://moneytreepodcast.com/big-list-of-alternative-investments/#.X43qldBKhaQ

Kirk Chisholm, a well know pioneer in the wealth management industry, explains the advantage of Self Directed IRAs to Jordan Goodman in this interview. He also talks about how to find alternative investments that can diversify a typical portfolio of stocks and bonds. He also speaks about the pros and cons of different forms of real estate investing. Bio: Kirk Chisholm is a Principal and Wealth Manager at Innovative Advisory Group, a Registered Independent Advisory in Lexington, Massachusetts. Kirk's influence and innovation has promoted change in many areas of the wealth management industry. He is the author of the Quick Start Guide to Self Directed IRAs and The Ultimate Insider's Guide to Self Directed IRAs. His website is www.innovativewealth.com Free Report: https://moneytreepodcast.com/big-list-of-alternative-investments/#.X43qldBKhaQ

Kirk Chisholm is a Principal and Wealth Manager at Innovative Advisory Group, an independent RIA (Registered Investment Advisor) located in Lexington, MA. He has been providing financial advice to individuals and families since 1999. Kirk's influence and innovation has promoted change in many areas of the wealth management industry. Kirk provides a different perspective on many commonly held beliefs when it comes to portfolio management, retirement investing, financial planning, inflation, economics, and other personal finance topics. His rare expertise with alternative investments held in self- directed IRAs has helped many investors invest in their passion. Kirk is an experienced media personality. He is frequently quoted and interviewed by industry media outlets in print, audio, and video media formats. He writes frequently for industry publications and major media publications. He frequently appears as a guest on various podcasts. Kirk was acknowledged as the number seven most influential financial advisor on Investopedia's top 100. Investment News named Kirk as one of the top 10 social media all-stars in the financial services industry. What you'll learn about in this episode: How Kirk hosts the Money Tree Investing Podcast, the longest-running investment-focused podcast in existence Kirk explains the key point that all IRAs are self-directed, and why it is important to find an IRA custodian who specializes in real estate Why people are often confused by or have misconceptions about how IRAs work, and why the fact that you can use IRA funds to invest in almost anything is a well-kept secret Why you need to investigate an IRA custodian and their fee structures and truly understand their offerings before you invest Why you should be dealing directly with an IRA custodian rather than taking the risk of going through an intermediary party, and how an administrator differs from a custodian Who should and shouldn't be using their IRA for their investments, and why setting your investments up correctly is vital How Utah Senator and former Presidential candidate Mitt Romney amassed more than $100 million in his IRA Why people often misunderstand the advantages of renting versus owning real estate, and why the numbers don't support owning always being better financially Why you should always be doing your own research and investing in the types of markets you understand and are an expert in What key lessons Kirk has learned over the course of his investing career, and why mindset and understanding your strengths and weaknesses is important Resources: Website: www.innovativewealth.com/realestatecoach Money Tree Investing Podcast: https://moneytreepodcast.com Kirk Chisholm's Media Appearances: www.innovativewealth.com/about-iag/press-or-media/ 28 Smart Questions to Ask Your Self Directed IRA Custodian blog post: https://bit.ly/2Uhwo4I LinkedIn: www.linkedin.com/in/kirkchisholm/ Additional resources: Website: www.SmartRealEstateCoachPodcast.com/webinar Website: www.SmartRealEstateCoachPodcast.com/termsbook Website: www.SmartRealEstateCoachPodcast.com/ebook Website: www.SmartRealEstateCoach.com/QLS/

On todays Show Tim Picciott interviews one of his mentors and colleagues Kirk Chisholm.Kirk is ranked as Investopedia's #7th most influential advisor in America. One of Kirk's specialties is risk management using option strategies.   In this podcast you'll hear about how Innovative Advisory Group was able to capture most of the upside from 2019 incredible year, while missing almost all the downside in 2020. Innovative's unique approach to traditional investing is perfectly suited for those who don't have time for their funds to recover aka people close to or already retired. It is also perfectly suited for those that would not like to risk half their money disappearing in another financial crisis… which is most people I know.       Tim and Kirk cover a wide variety of topics including: -How his firm faired during last weeks major sell off - Lessons from the Dot Com Bubble and Financial Crisis - Death of the buy and hold approach -Why stop losses aren't all they are cracked up to be -Pros and Cons of our strategy. -Alternative Investments -We touch a little on Self-Directed IRA's - Background of how I came to work with Innovative Advisory Group. To find out more about Innovative Advisory Group you can visit innovativewealth.com and to work with both Tim and Kirk you can learn more at www.thelibertyadvisor.com   For Tim's free ebook text "LibertyAdvisor" to 71441   To learn how you can invest outside the stock market, here is Kirk's list of 75 Alternative Investments that can help you invest outside the stock market: http://www.innovativewealth.com/Timpicciott1

About today's  guest: Kirk Chisholm is a Principal and Wealth Manager at Innovative Advisory Group, an independent RIA (Registered Investment Advisor) located in Lexington, MA. He has been providing financial advice to individuals and families since 1999. Kirk’s influence and innovation has promoted change in many areas of the wealth management industry.  Kirk provides a different perspective on many commonly held beliefs when it comes to portfolio management, retirement investing, financial planning, inflation, economics, and other personal finance topics. His rare expertise with alternative investments held in self-directed IRAs has helped many investors invest in their passion.  Kirk is an experienced media personality. He is frequently quoted and interviewed by industry media outlets in print, audio, and video media formats.   He writes frequently for industry publications and major media publications. He frequently appears as a guest on various podcasts. Kirk was acknowledged as the #7 most influential financial advisor on Investopedia’s top 100. Investment News named Kirk as one of the top 10 social media Allstars in the financial services industry. You can find many of his media appearances here. Kirk writes on his company’s blog, you can read his articles here. He is also the host of Money Tree Investing Podcast which you can find here. www.moneytreepodcast.com www.innovativewealth.com  www.innovativewealth.com/noneofyourbusiness  https://cre8athletes.clickfunnels.com/optin www.economeconference.com promo code noneofyourbusiness.

FIND OUT MORE ABOUT TIM HERE: http://www.thelibertyadvisor.com/   Feature: Tim Picciott Crypto Wealth Advisor (Financial Advisor) TITLES:  President Crypto Self-Direct Wealth Advisor, Innovative Advisory Group   Credentials: CERTIFIED FINANCIAL PLANNER ™ CHARTERED RETIREMENT PLANNING COUNSELOR ™  Timothy Picciott  CFP® CRPC® is a Wealth Advisor with Innovative Advisory Group. He is also a trailblazer in the field of Crypto wealth management strategies.  Early on Tim understood the challenges Bitcoin early adopters faced, as they struggled to get their substantial cryptocurrency gains from the virtual world to the real world… without getting killed by taxes. Tim works with Bitcoin and Crypto early adopters to provide advanced financial planning solutions to help them pay as little taxes as legally possible on their highly appreciated asset(s). He also advises crypto-enthusiasts as to how they can invest into  “Crypto IRAs” using self-directed IRA's and 401(K)'s. Tim's contrarian viewpoints and handle of Austrian Economics makes him an incredible asset for those who aren't looking for cookie-cutter financial advice.  Tim has been helping his clients retire with the feeling of security for over a decade. Notables: Multiple Time IRONMAN™ Triathlon finisher                 Recipient of the 2014 Maricopa Lifesaver award    One of the youngest people to obtain CFP® Designation   FEATURED ON: Tim has been featured on: Bitcoin.com,  “Free Talk Live”(2x feat guest), “Declare your Independence”(Frequent Guest 50+ times), Anarchast, Finance and Markets, CEO Money, The Money Savage podcast, Crypto Coin Show, Tatiana Show as well as many other media appearances including his own podcasts:  “The Liberty Advisor Show” and “Crypto Wealth Show” LINKS:  Crypto Beginner guide How its rigged e book Sequence of Return Risk Crypto Estate and IRA Investor Guides and Presentations Tim's Intro at Anarchapulco / TDV 2018          JOIN US On Flote, the new social media: https://flote.app/TheLibertyadvisor

  Host Ernest Hancock interviews guest Tim Picciott (Wealth Manager @ Innovative Advisory Group) for The Economic Report Declare Your Independence with Ernest Hancock Radio Show: https://www.freedomsphoenix.com/Program-Page.htm?No=1 Show Archive Page: https://www.freedomsphoenix.com/Media/273426-2019-12-18-12-18-19-paul-rosenberg-tim-picciott-dr-judy-mikovits.htm Webpages https://www.freedomsphoenix.com/ https://www.freedomsphoenix.com/Subjects/TopTech http://pirateswithoutborders.com/ Tim Picciott In Studio for The Economic Report... Timothy Picciott CFP® CRPC® is the founder of Crypto Self Direct and Wealth Advisor with Innovative Advisory Group. MR Picciott is a trailblazer in the field of Crypto wealth management strategies. Tim understands the challenges Bitcoin early adopters face, as they struggle to get their substantial cryptocurrency gains from the virtual world to the real world… without getting killed by taxes. He works with Bitcoin and Crypto early adopters to provide advanced financial planning solutions to help them pay as little taxes as legally possible on their highly appreciated asset(s). He also advises crypto-enthusiasts as to how they can invest into "Crypto IRAs" using self-directed IRA's and 401(K)'s. Tim's contrarian viewpoints and handle of Austrian Economics makes him an incredible asset for those who aren't looking for cookie-cutter financial advice. Tim has been helping his clients retire with the feeling of security for over a decade. Webpages: http://cryptowealthadvisor.com/, https://www.innovativewealth.com/, Liberty Advisor Podcast - Crypto Wealth Edition, http://www.thelibertyadvisor.com/declare, http://libertarianadvisor.com/ (The Liberty Advisor), https://www.facebook.com/thelibertarianadvisor/ (The Liberty Advisor), https://twitter.com/libertariAnDVSR Tim's previous interviews on the Declare Your Independence with Ernest Hancock Radio Show: https://www.freedomsphoenix.com/Guest-Page.htm?No=01384 ========================================== References on the show... https://www.theepochtimes.com/hillary-clintons-emails-were-sent-to-gmail-address-with-a-chinese-companys-name_3043380.html

  Host Ernest Hancock interviews guest Tim Picciott (Wealth Manager @ Innovative Advisory Group) for The Economic Report Declare Your Independence with Ernest Hancock Radio Show: https://www.freedomsphoenix.com/Program-Page.htm?No=1 Show Archive Page: https://www.freedomsphoenix.com/Media/272772-2019-12-03-12-04-19-kent-heckenlively-tim-picciott-sahid-miller-mp3s.htm Webpages https://www.freedomsphoenix.com/ https://www.freedomsphoenix.com/Subjects/TopTech http://pirateswithoutborders.com/ Tim Picciott In Studio for The Economic Report... Timothy Picciott CFP® CRPC® is the founder of Crypto Self Direct and Wealth Advisor with Innovative Advisory Group. MR Picciott is a trailblazer in the field of Crypto wealth management strategies. Tim understands the challenges Bitcoin early adopters face, as they struggle to get their substantial cryptocurrency gains from the virtual world to the real world… without getting killed by taxes. He works with Bitcoin and Crypto early adopters to provide advanced financial planning solutions to help them pay as little taxes as legally possible on their highly appreciated asset(s). He also advises crypto-enthusiasts as to how they can invest into "Crypto IRAs" using self-directed IRA's and 401(K)'s. Tim's contrarian viewpoints and handle of Austrian Economics makes him an incredible asset for those who aren't looking for cookie-cutter financial advice. Tim has been helping his clients retire with the feeling of security for over a decade. Webpages: http://cryptowealthadvisor.com/, https://www.innovativewealth.com/, Liberty Advisor Podcast - Crypto Wealth Edition, http://www.thelibertyadvisor.com/declare, http://libertarianadvisor.com/ (The Liberty Advisor), https://www.facebook.com/thelibertarianadvisor/ (The Liberty Advisor), https://twitter.com/libertariAnDVSR Tim's previous interviews on the Declare Your Independence with Ernest Hancock Radio Show: https://www.freedomsphoenix.com/Guest-Page.htm?No=01384 ======================================== IMF WARNS Of Chinese TAKEOVER Of Africa! - African Debt SKYROCKETS! = https://www.youtube.com/watch?v=-5RcrD1N65I&t=4s

Kirk Chisholm is a known risk taker when it comes to investing and alternative investments. Being a person of full will and perseverance to know the ups and downs of the market, he has learned a lot through experience – good and bad. Currently, he is a principal and wealth manager at Innovative Advisory Group, an independent registered investment advisor (RIA) in Lexington, Massachusetts, in the United States.  Since 1999, he has used his influence to promote change in different aspects of the wealth management industry, manage risks and provide options for investors. Kirk has been acknowledged by different investment sectors for his passion for learning and imparting them to others. His ideas are frequently sought out by the media. In fact, Kirk made it to Investopedia’s top 100 - at number 7 - as the most influential financial advisor. Moreover, Investment News recognized him as one of the top 10 social media all-stars in the financial services industry. He also is the host of The Money Tree investing podcasts, which aim to teach listeners how to have their money work for them.   “The best investors will acknowledge that [truth] and they’ll tell you: ‘I’m wrong a lot. I’m just quick to make a change when I’m wrong’.” Kirk Chisholm   Worst investment ever Analyst perspective and promising reports Kirk can has had numerous bad investments, but just like any of us, one will always stand out. Considering its pertinence to the present global economic situation, he shares his story of investing internationally, in a Chinese coal company. Ten years ago, a friend of Kirk’s, who happens to be a financial analyst, visited a coal company in China. His friend and his team saw directly how operations were carried out. They talked to people, did extensive research, and finally drew the conclusion that this investment had a potential for growth once it was regulated and operated by more astute parties. Having read the reports and in the belief that it is always best to have a reliable team of analysts, Kirk was attracted to investing in the company. For him, researching is one of those tasks that must include a lot of due diligence and should be done by more than one person so it can produce thorough and accurate information. Analyst reports on China investment hide painful truth While every box was checked and all operations had been carefully looked into, a short-seller’s report came out of the blue. At first, Kirk did not take this as a serious warning to reconsider his decision about the investment. Based on his experience, short-sellers are not always reliable. He was also looking for a yield potential of 36% on selling. However, at a certain point, the company halted trading and he tried to limit his losses but to no avail. He found out that the reports presented to him were dishonest. The company had failed to disclose that the company’s shares were used as collateral in order to secure a loan from a private equity firm. Technically, the shares on the US exchange were worthless, and a great deal of money was lost. Poor research and cultural differences This was the point of no return. Kirk had already invested and his money was nowhere to be found. He could have chosen to report the matter to the authorities and file a lawsuit, but the company was on the other side of the Pacific, which made that option extremely difficult and cost prohibitive. Moreover, he believes that cultural differences played a major part in his failure. A property right is treated with as much respect in China as it is fundamental in the US (and most of the developed world).   Lessons learned Risks are inevitable As an investor, Kirk is aware that no matter how prepared a person is in a new venture, risks are always there. Likewise, with investing internationally, the risks are greater and mostly beyond research. Risk management is essential in order to plan for, avoid and guard against loss. He has learned to acknowledge these risks and turn them into a beneficial lesson. In some cases, he encourages people to use other options and explore them before sealing a deal. Alternative investments are good, but the risks involved should be considered in advance. Home-country bias must be considered well Investing internationally made Kirk realize that everyone places more importance in areas they are familiar with – their home turf.  The cultural differences between investors and companies should be assessed first since what is significant for you may not be as precious to members of another culture. Statistics show that investors are much more likely to pour their money into businesses in their own country. So, for you to manage your risk, look for investment opportunities in your country first before exploring other lands. Invest in what you know Kirk quotes Former Fidelity fund manager Peter Lynch, who wrote phenomenal books in the 1980’s and 1990s, such as Learn to Earn, reiterating the lesson of staying within your comfort zone (your home country) and investing in industries in which you have extensive knowledge.   Andrew’s takeaways The risks that really matter are the ones we can’t see The more dangerous risks are those that are not visible at first glance. Corporate governance is a great example. In such instances, the scorecard may shift on how good or bad a company is, but not everyone can notice it. Financial analysts don’t reveal everything at events or company visits, which makes it hard to predict the true situation of a company.   Actionable advice Take a look at the contrarian view Kirk does not deny the fact that we are not 100% right all the time. He admits that even the smartest people make mistakes; but the best ones look at how they’re wrong and how to improve on it always make a difference. Assess, assess and reassess Kirk emphasizes the critical need for constant reassessment, no matter where you are in the investment process. Logical decisions should be based on facts and not on emotions. Furthermore, once a deal becomes potentially damaging, one has to look for closure and not to be emotionally tied into it.   No. 1 goal for the next 12 months To become a better leader, mentor and coach to his followers. He is very passionate about imparting his own lessons to others.   Parting words Kirk says there is no growth without struggle. He believes that people learn not only from their wins, but more from their losses, or the losers that they meet along the way. He added that Andrew’s podcast is something that is in line his passion because provides options for listeners to gain knowledge from real-life situations. Also, as a parting gift, he offers here a free report about his top-75 alternative investments. “There is no growth without struggle.” Kirk Chisholm     You can also check out Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr. Deming’s 14 Points You can also check out Andrew’s online programs Valuation Master Class Women Building Wealth The Build Your Wealth Membership Group Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points  Connect with Kirk Chisholm LinkedIn Twitter Website Blog Connect with Andrew Stotz Astotz.com LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast Further reading mentioned Peter Lynch (1996) - Learn to Earn: A Beginner’s Guide to the Basics of Investing and Business  

Date:      August 9, 2019 Attendee and Guest:   Kelly Coughlin, CEO, EveryDay CPA – Kirk Chisholm, President – Innovative Wealth &                                                                     InnovativeAdvisory Group   Good morning everybody, this is Kelly Coughlin, CEO and CPA of EveryDay CPA, providing star services of strategy, tax, accounting and risk management services to businesses and business owners.  Today I am going to interview the CEO of a very interesting wealth management firm.  He specializes in two primary areas, using alternative investments like real estate to complement a traditional portfolio of stocks, bonds, and cash, and the second is creating a traditional portfolio of stocks, bonds, and cash, but complementing that portfolio with what we call inverse correlated assets.  An inverse correlation, also known as negative correlation, is a contrary relationship between two variables, so they move in opposite directions.  Or, to put it simply, when one bucket of assets goes up in value the other doesn’t go up or doesn’t go down.  And when taken in combination, they together produce a good and reasonable rate of return. The popularity of this type of strategy has been growing substantially in the past four or five years and used by institutional investors for many, many years.  But on T.V. you could see ads like crash proof retirement, which at their core simply used insurance annuities to offload the risk to insurance companies.  But then you will also see guys like Ken Fisher saying, Never ever hold an annuity.   It’s no wonder the people are confused, but in steps, my guess today, Kirk Chisholm, President of Innovative Wealth and Innovative Advisory Group.  Kirk, how are you today?  Kirk:     I am doing great Kelly.    I am doing awesome on this wonderful Sunday morning.  Kelly:   Great.  And we already discussed, your kids are going to the water park?  Kirk:     Yes, yeah.  Kelly:   I have been to Kirk’s swimming club in the Boston area and - he has to pay a membership for that, and now his kids want to go out and spend another 50 bucks today, right?  Kirk:     Fifty bucks, Kelly, you don’t live in the Boston area, do you?  That would be nice if it was only 50.  The cost of happy three kids.  Kelly:   Kirk has a lovely wife that I have met, and I am sure there is, “Can’t we just go to the club, and it is right around the street”, and you lose that argument, right?  Kirk:     Yeah, every single time.  Kelly:   Great. Well, I have known Kirk for many years, folks, and his firm.  And in fact, we have liked each other so much we decided to start working together.  You might ask, why would an accounting firm do work with a wealth management firm?  Sometimes people pit the two as arch enemies.  Well, Kirk and I certainly are not.  But here is how it fits into my company, EveryDay CPA, we do four primary things here, we call it our Star services, S T A R, Strategy, namely business strategy, Tax, Accounting and Risk Management.  And this work with Kirk and Innovate Wealth is the key element of the R component, the risk component of the STAR system.  And the reason I am doing this podcast now, today, at this moment is because it is especially important.  There are two things going on. Number one, we are at some point in the continuum of the Trump Rally and two, we have a presidential election coming up next year. First, the Trump Rally.  The market is up about 37% since Trump’s election.  Now, note that at this point in Obama’s presidency, that is, at this point in the number of days of his presidency the market was up 52%.  And ultimately, by the time he was out of office the market was up 147%.  Now, we all know the reason those numbers are so high for Obama.  By the time Bush, number two left office the market had lost 26%.  So, he was at the very bottom of the market trough that he was able to creep or wade out of.  And of course, Bush suffered such poor performance because 911 occurred shortly after his election, we had wars in Afghanistan and Iraq. So, anytime you have significant increases in the market, you also have an increased perception of risk that the market would give back some of those increases. So, today, up 37%, some of the fears justified, some of it is manufactured by annuity and insurance salespeople trying to use fear as a motivator to sell insurance products. These are the ads you see on T.V. and Kirk and I, he doesn’t know this yet, but we are going to have another podcast in a couple of weeks where we are going to talk about these Crash Proof Retirement Solutions.  Because I will go on record right now, that will be the next shoe to drop in the investment world.  All of this nonsense that has been peddled on Crash Proof, using annuities etcetera, shoe is going to drop.  And the second factor that’s occurring here is the presidential election. There is no doubt in my mind that business owners, across the board, are fearful and nervous that if the Trump culture of reduced regulation, reduced taxes, pro-business mission and vision for America came to a screeching halt, during election, that nervousness and perception of risk would increase dramatically by business owners.  And nervousness means business slowdown in capital investments, slowdown in new hires, slowdown in new product innovation, and this means decline in markets.  Because the market is always about three-quarters forward-looking.  Now, would this perception of increased risk in the change in leadership at the White House be justified or not?  It’s a whole lot of questions, I personally think it is because I don’t see any of Trump's competitors being pro-business.   In fact, I see nothing but anti-business sentiment.  So, Kirk, that’s the background into which I am going to launch our discussion today.  Kirk Chisholm, President of Innovative Wealth Management and Innovative Advisory Group, I gave you a lot to think about in that intro, and here is where I would like to start out.  You have been doing this risk-managed portfolio stuff for many, many years, why does your strategy work?  Does it work, and what does the portfolio look like when it does work?  What does it look like when it shines, that is, when the general markets are declining?  Kirk:       Yeah, I mean, those are some great questions, Kelly, and I want to start by putting a little background for my history because I think that will be helpful.  So, when I started in the industry back in ’99, December of ‘99, which of course, was probably the worst time to start, right?  When you get off two decades of a bull market and then just started going through recession right away, so I learned risk management really quickly.   You know, when I everyone else was thinking the market was going to keep going up and I didn’t have that because I started with pretty much the market going down.  So, I learned real quick on how to manage money and how to manage risk in that kind of condition. For me, that’s why risk management has always been the top priority.  It is rule number one, don’t lose money, and I paraphrased Warren Buffet there.  So, we sailed through 2008 pretty easily, unscathed, because we had some understanding of what was going on, and since then we have built additional strategies to manage it even better.  One of the things that I think people in the industry get caught up on is, they come with a strategy and they feel like, this is it, I am going to do this and this is going to solve all my problems, it’s the best strategy I have ever seen, and it will never change.  The problem is, the market changes all the time. Every day, every second of the day it changes, and the more computerization that comes into the market the more rapidly that’s going to change.  So, if you don’t have the agility, if you don’t have the ability to change on a dime with your strategy then you are going to get run over.  I think this is one of the biggest challenges that we see, because when I got into the industry, you talked about, earlier, Kelly, with inverse correlation or negative correlation, one of the things I found was, initially, you could diversify properly and it would work, and generally speaking, you know, when the markets go up the diversified portfolio works as intended, typically. The market goes up about 66% of the time, when the market is going up diversified strategies work. In 2008, in that period, it stopped working.  It’s fascinating, because we did some research way back, to dig into this, and what we found was, if you look to 2008, almost every single asset class except for cash and gold, went down. When you study and say, how is that even possible?  So we did some digging and what we found was the net result was effectively that the institutions were causing a correlation, because all the big money was flooding into the market and making the same changes at the same time so it caused, effectively, this correlation of assets. So it became really challenging to create a diversified portfolio to reduce risks.  You used to be able to invest in things like timberland and manage futures and hedge funds.  That used to allow you to diversify properly and get inverse correlations.  The problem is because everyone was investing in the same thing it was no longer non-correlated, it became correlated.  Many people thought that they were diversifying and reducing the risk when essentially they weren’t.  And they didn’t realize it because they were just accepting this norm as given by just saying, oh, this is the way things always are, they will always be this way.   And it’s not, things change all the time, and if you are not assessing your assumptions, at any given time, then you are going to get run over in this market because things change so rapidly.  So, that’s kind of how I look at risk management.  That’s my background on it, why I look at things the way I do, which is a really important context, I think, of this conversation.  Kelly:     I gave a talk in London about one year before the Madoff Hedge Fund nightmare.  I think that was in 2007, I was CEO of a financial technology investment firm.  And the title of my talk was Hedge Fund Needs TLC, Transparency, Liquidity, and Custody.  And I’m not bragging here, but - I guess I kind of am - that talk foreshadowed.  I predicted this, it foreshadowed the issue that was highlighted by Madoff, specifically, and Hedge Funds in general.  I think you would agree that Transparency, Liquidity and the issue with Custody were core and critical to the problems Madoff scandal highlighted.  Do you agree with that?  Kirk:       Yeah, I do. You weren’t alone in your kind of assessment, I mean, our very own Perry Mecarpolis who was kind of one to find Bernie Madoff.  He wasn’t the only one, there were more, but no one listened because when times are going well no one wants to pay attention to that stuff. They are not worried about it, only when times get bad that people worry.  Well it’s too late, right?  You have to, like you did, like you talked about it before the problem, and that’s you need to have those kind of resources because when times go bad it’s too late, everyone else is running to the door and it’s a lot harder to get out.     Kelly:     Yeah, this was at a Hedge Fund conference and it was like nobody wanted to talk to me at the cocktail hour after I said this.  It’s like, okay guys, I’m sorry, I didn’t want to ruin the punch bowl but transparency and liquidity and custody,  it’s just I  want to clarify so listeners know why those are critical, because it’s still true now, more than ever, investor on the transparency side. Investors need to see the underlying assets in the portfolio, and that’s why I don’t like annuities, you can’t see anything.  And then number two, investors need to be able to convert those assets that they do see for whatever reason, if they don’t like what they see, they need to be able to convert them to cash or another asset. That’s the liquidity portion.   That’s another reason why I don’t like annuities.  And then the third is custody.  Ultimately, if you see something and you don’t like it you want to be able to access it, and if you have got some custodian that is nonexistent like we had with Madoff where he was just fabricating third party custody, you are going to have a problem. The reason I put custody at the end is because I like the TLC thing but custody in my mind is kind of at the top of the list because you need to be able to see the assets at a qualified bank or broker, not in the file cabinet of some Hedge fund manager that’s acting as custody.  I am assuming you are going to agree with all that stuff.  I know you do because you operate your company with TLC.  Tell me, how would you score you and your portfolio strategy in the TLC paradigm there?   Kirk:       Yeah,  and you raise a great point, Kelly, because I think that each one of those components has an issue attributed to it, in the markets in general and some of that field that we can kind of touch on here.  But, you know, with my portfolio that’s exactly what we designed it around, transparency, liquidity.  Possessions we have, have to be liquid because if something happens and you need to get out, you need to get out right away.   Actually, it should be on custody first because that actually will start us off.  So, we don’t custody assets, we custody at one of the bigger custodians which is TD Ameritrade.   A firm like ours, we don’t want custody. I don’t want that liability.  I would rather find a top-notch firm that does it really, really well and use them, and for us, TD Ameritrade was that good fit. So, the transparency aspect goes along with that custody because we are not custody-ing it, the transparency is, our client can easily go to the custodian.  Like they get statements from the custodian, it doesn’t come from us.  You know, they can always go on their account and see their investments in any given time.  It’s totally transparent, there is nothing hidden whatsoever about it. The liquidity of our possessions is very important too. You look at 2008, for example, and actually, 2015 was another example of this.  So, in 2008 in certain markets there was a lack of liquidity.  In the institutional markets, there were a lot of these vehicles that were created where there was a lack of liquidity at the time when people needed it most.    So if I am managing a portfolio, for example, and let’s say I have 80% of my portfolio in the S&P 500, so a very liquid bunch of investments, let’s say 20% in some sort of an illiquid vehicle, some sort of an institutional vehicle, and I want to liquidate that but there is no liquidity all of a sudden I have to search down in my S & P shares because I need liquidity, I need to free up capital to either pay back investors or whatever it might be. So, instead of selling the thing that I want to sell, I’m selling things I don’t want to sell. But the problem is, it’s not just me, it’s the entire market doing the same thing.  So, if you want to know why the assets correlate, it’s because all these institutions own the same things.  So, look at 2015 as an example, we started to see this idea which I call contagion, which is, effectively, the oil prices started to plummet. Well, if you owned oil assets, you couldn’t sell them because, you know, no one wanted to buy them because they kept going down so in order to have liquidity in your portfolio you sold something that wasn’t oil.  You know, maybe it was Apple stock, maybe it was real estate, maybe it was, in some cases, oil companies.  The challenge is when everyone trying to do the same thing at the same time everything correlates and liquidity dries up.  Now, for us, when we manage money, I mean, we do a lot with alternatives but it’s a very separate part of what we do. The traditional portfolio, which is kind of really what we are talking about here today, the traditional portfolio is fully liquid.  We have set this up specifically for the fact that if people need liquidity they can get it.  Call me up tomorrow and say, hey, I need my money, I can just sell it and it’s done.  Everything that we do is highly liquid.  We only deal with the most liquid securities because of this very issue.  When things go bad liquidity dries up.  You don’t want to be on the other end of that. So that for us is extremely important.   Kelly:     Kirk, I know you like to work with CPAs and help them with their clients, just like you are helping me with my clients. Let’s say I have some tax and accounting clients that need what I think is a risk-managed portfolio, and the profile for that type of client is typically this, they have made their money; they have created their wealth; they don’t need to hit any home runs; they don’t even need to hit a triple, maybe a double, a single, they don’t need to strike out, and they sure as hell don’t need to be hit by the pitch,. That’s the typical client that many of us see.    Kirk:       I like the analogy, Kelly.  Kelly:     Thanks.  Number one, preserve what they have, and number two, grow it.  In that order, and what’s the best way for these clients to work with you, whether it be a CPA or one of my clients, how are we going to work together on this?  They are located in say, Minneapolis and Kansas City, how do we work together?  Kirk:       First of all, a location I don’t find is all that important.  I have been doing this for 20 years, most of my career I thought that I need to see somebody to work with them but in the last three years, I have kind of changed that kind of mindset around myself, because what I realize was, clients don’t want to see me.  They don’t want to drive an hour or a half-hour to my office and then drive an hour or a half an hour back.  Like, it is much more efficient use of their time to just get on a call and talk about these things.  You and I are in different states and we work together just well. But the other part of what you were saying is very important, where you were talking about not hitting home run in triples. There are many types of clients. There are clients who are trying to build and grow their wealth and there are clients who are not, right? They just trying to maintain and to sustain their wealth.  You know, it is funny, no one sends you a letter and says, hey, you are rich, right? There is no letter that the IRS sends you that says, hey you are rich, like, now you are going to start paying the rich person’s taxes.    It doesn’t happen that way.  There is kind of this grey area, depending on the amount of wealth that you have, you have enough but you feel like you don’t have enough.  And it is weird, I have talked to people who are worth couple hundred thousand, tens of millions, I have talked to people who are worth billions, and they all have the same mindset, which is I need another 30% to feel comfortable.  It’s a weird human psyche that people can’t be comfortable with the fact that the money they have is enough. So, whatever we do with our clients is deep conversations, what I call the emotional side of money, which is, you know, it’s really important.  Because let me give you an example, there is a woman I worked with, my entire career, a wonderful woman and she worked really hard, saving and recently she got to a point where she wants to retire.  So, she is going from this aspect of working hard and saving to no longer working and spending.  That is a huge mental shift that people have to make, and it’s really hard, right?  You have spent 40 years working and saving and now you just have to flip the switch and do the opposite. That is very uncomfortable for people.  It’s not an easy transition to make.  So, a lot of what we do is helping people with, I guess, what I would call retirement lifestyle planning, which is helping them make that transition.  So, it’s not just that they’ll have enough money but it is that they are comfortable with the money that they have and they are comfortable spending it.   Because I have worked with a lot of people who have way more than they need and they feel like they don’t have enough.  This woman, for example, she was actually spending less than she was making in social security and she is worth seven figures easy.  There is no way she would ever run out of money at that spend rate.  And what I was helping her to do is to be comfortable with the fact that she had enough money and be comfortable with spending that money.  You spend your whole life saving this money, like, you need to enjoy it.  Like, retirement is about, we call it phase two of your life because you have got another 30 to 40 years when you retire,  what are you going to do?  Sit around and golf all day and drink beers?  I mean, that’s fun but that’s not the purpose.  And a lot of people need to rediscover that purpose when they retire because they make such big shifts. Getting back to the point, when I work with clients I’ll tell them upfront, our job is not to hit your home runs, our job is not to be BS and T every year, our job is to hit the singles and doubles to get performance but the real key to what we do is not lose when the markets hit a recession.  That’s really the key because if you don’t lose when the big losses come then you are way ahead of the game. In 2008, from the pig to the trough, the markets went down over 50%.  If you didn’t lose 50% in those years and you were in cash you effectively made 100% return on your money because not only did you not lose money but you could have bought everything 50% cheaper.  So, effectively you just made 100% return on your money, and you didn’t have to do anything.  You didn’t have to outperform the index, you just had to sit on the sidelines and not lose money whenever everyone else was losing money. It’s a different perspective than I think most people would make but if you consider where we are in the economy right now, we have had 10 plus years of a bull market plus 11 years of a bull market.  We are getting to a point where a recession could come at some point in time soon.  It could happen next week, it could happen five years from now, right?  No one knows, no one can predict the future.  But I don’t need to predict the future to know how to handle this situation.  What I need to know is that there is a recession coming at some point, we all kind of feel that.  It feels like everything is really expensive, and it is, and at some point we are going to have a recession, that’s inevitable. That’s just the way that market cycles work.  My role is not to know when that’s going to happen.  My role is to predict that the market could continue to go up, and also, the market could easily go down.  So, we have built a strategy around that process that if the markets are going up you make money and if the markets melt down you are not losing money.  That’s really effectively what we have done.  We,  with our approach to investment management we look at the situation that we are in, which is, the markets could go up or they could go down, and we build a strategy around that.  Kelly:     Kirk, here is how I see it, certainly, correct me if you find it flawed.  Historically, you have the CPA that’s more or less pitted against the financial advisor.  The advisor is always recommending more risk and the CPA is saying, less risk. And the CPA tends to say no to anything that is unpredictable or about which he or she is either not educated or experienced in, the advisor might say, I don’t know, for the last years, I think, many CPAs have decided that they are going to get into the advice business, they are going to open up an advisory practice and become financial advisors, become wealth managers.  I kind of fundamentally disagree with that because the objective supervisory role, to stick with the baseball metaphor, the manager role of the team is now merged with the player or merged as a player.  And I think the CPA is best sticking with the manager role but becoming a better manager so that he or she is a little more educated and experienced in it.  So it’s not no to everything but the CPA should stick with the manager role, the supervisory role, but review the performance of the players.  That could be a large cap player, it could be a wealth management player, it could be a small cap, it could be an alternative or it could be review the performance of a wealth management player, like yourself, who looks at all those underlying asset classes – small cap, large cap, alternatives.  Do you agree with that analysis?  Does that make sense to you?  Kirk:   It makes total sense Kelly, and you are 100% right.  So, if you look at the traditional CPA role, it is accounting and tax, risk management strategy, tax planning, like, there is a lot of things that the accountants bring to the table.  And you actually pointed out, it seems as though a number of them will try to become wealth managers or financial advisors and they are putting themselves in a very precarious place. Because I have been doing this for 20 years, I am always wanting new things.  This is a profession in and of itself, for an accountant to all of a sudden start providing wealth management services or investment advice, all the things that we do, it would be like me going out and saying, I am going to be an attorney.  It’s a totally different profession and requires a lot of time, effort, study.  Like, it’s not just like, oh, I am just going to make money off mutual funds or provide them to clients. The CPAs are much more into risk management, which I think is a really good position to be because you are one of the most trusted people in the clients’ lives for anything that affects them financially.  You need to have that oversight and guidance.   You need to have that supervisory or managerial control to continue the analogy.  You know, you need to have that oversight because the clients want that, the clients are asking for that, and you would be in a much better place providing that position than actually doing the investments yourself, because you are taking a step back and you are being an unbiased third party and saying, here is what I think we should do.  As you mention, I do work with a number of CPAs, our strategy is more tactical and we have done this specifically because of the nature of what you are saying which is, as a CPA, this is your job to provide oversight and guidance, and you don’t want the clients to lose money.  So, the strategy, in many ways, to develop around that philosophy which happens to coincide with my philosophy anyway which is, rule number one, don’t lose money; rule number two, pay attention to rule number one. Like, making money is the easy part, that’s going to happen, it’s the risk management that’s the hard part.  And that’s the thing, if you don’t get it right you can really screw up your portfolio.  So, it’s really important to get the risk management right, first.  It’s your obligation as the supervisory role it is very important to take care of this for your clients because they look to you, as somebody in this role.  And our society, we are lacking leadership, and our society and I really appreciate the fact that you have taken this role head-on and saying, I am going to do this for my clients because it’s really important to provide this service where all our people are not doing it.                                                       Kelly:     Yeah, it is kind of like let’s say, CPAs, let’s say tax focus CPAs, we scratch and claw and fight to help clients get an extra $100 refund or minimize their tax by $200, that sort of thing. You know, maybe it is even in the thousands but it’s kind of like when we stay out of the wealth management area where we are not helping on the risk management part of their wealth, what are we doing, I mean, we are winning these tiny little, I wouldn’t even call them battles, I would call them skirmishes.  We are winning those little skirmishes but the entire war is being won and lost and fought and we are not even participating in it.  It’s almost like CPA’s are afraid to get into the arena, afraid to fight, afraid to get shot so they hide in their tent.  I don’t know.  I am mixing a whole bunch of metaphors.  Kirk:    But yeah, and I think you, I mean, your point is valid because I think, the CPAs we work with, we tend to work with them on a collaborative basis.  And I think one of the challenges is, and this is not just CPAs and advisors this is all service professionals, when we work with our clients, we work with CPAs, we work with attorneys, we work with various different professionals and what I find is common in our industry is that, like, let’s just say, an advisor would say, hey, you should do some estate planning, and, you know, either the client has somebody they work with or the advisor finds them someone, and then they do the work and they put all this package together and they spend a few thousand dollars, and they have this package and their attorney is like, great, you are all set.  And the client is thinking, hey, I am all set and what he really meant is, here is your package you figure out the rest of it.  And the client thinks they are fine so they don’t say anything.  And, you know, they set up a trust or whatever they are doing and they don’t get funded, you know, get set up properly.  So all of a sudden you spend a lot of money for something that isn’t even implemented, and no one knows because it’s just like one hand doesn’t know what the other hand is doing.  So, what I find is most effective is working with people on a collaborative basis.  So, for instance, you and I, you and I would talk about each client and say, alright, we are going to sit down and work with this client.  Like, we would figure out what kind of tax planning they need, you know, what kind of cash flow management they need.  What about their investments?  What about their estate?   And we look through each of these quadrants of the puzzle and say, what needs to be done, how can we coordinate this?  You know, because we do operate on different playing fields for that because we are doing different things.  So, it’s important that, you know, this kind of collaborative method works well so that the balls don’t get drop, things don’t slip through the cracks, and that everything is getting taken care of.  So, from a client perspective, you are getting a much more holistic perspective of oversight and guidance and you are really getting taken care of from different angles from people who have different expertise.  So, what I find is if people are trying to do everything themselves, it is said the player versus the supervisor, it’s really hard to do everything yourself well. It’s a challenge for any good professional that is collaborative, that want to work together and are not territorial so I think you kind of hit the nail on the head there and that’s one of the reasons why we work together, it’s because, you know, we both see that element of collaboration as being very important for the client, and really doing what’s in the client’s best interest, which I think is the top priority in any relationship.   Kelly:     Yeah, I think this is a good model, I like it.  Anyway, we can terminate it now so you can get back to the going to the pool or you are using this podcast as an excuse to not have to go to the water park, the urine-filled water park?    Kirk:    Lots of chlorine Kelly, lots of chlorine.  Kelly:   Alright Kirk, I enjoyed it.  Take care of yourself.  How should people get in touch with you if need be?  Kirk:    Yeah, I’m pretty easy to find, you can find me at InnovativeWealth.com. So, our website InnovativeWealth.com, you can come there, I have written pretty much everything on the website.  I have written myself a lot of the blog post, if you want to get to know about me you can find me on all the social media channels.  I am really pretty easy to find.  And, obviously, you can find me through Kelly because Kelly and I are working together.  So, you know, the path is, contact Kelly and, you know, I can coordinate working with you as well.   Kelly:     Okay kirk, enjoy the remainder of the weekend, take care of yourself.  Kirk:       Alright, thanks.   Thanks a lot, Kelly, thanks for having me on.             

Today on Building Success, Nick speaks with Kirk Chisholm, Wealth Manager & Principal of Innovative Advisory Group. They discuss real estate as an alternative investment, explaining some of the advantages and pitfalls of this investment vehicle. Kirk also explains the concept of a Self-Directed IRA, and how real estate can be part of the make-up of your personal investment strategy. For more information on Kirk and to get a free gift as a listener of the podcast, visit www.innovativewealth.com/BuildingSuccess. Also, be sure to check out his personal investing podcast, Money Tree Investing at www.moneytreepodcast.com For all things Building Success, check out www.buildingsuccess.io!

Kirk Chisholm is a Principle and Wealth Manager at Innovative Advisory Group, an independent Registered Investment Advisor, and host of The Money Tree Investing Podcast based in Lexington, MA. Kirk has built his entire career on the basis of helping other people navigate big transitions and handle their investments. He isn't driven by money, but rather by the desire to positively impact as many people as he possibly can. His journey through health challenges, career struggles, and the desire to understand how he can be the best person possible is inspiring and his message is seriously impactful. BIG TAKE-AWAYS: There is an emotional factor to finances - and it has huge impact on our behaviour Don't just set a goal - use your goals to set a direction and a purpose Happiness isn't a goal, it is the journey Don't do it alone! There is strength and longevity in social interaction and community Links: www.innovativewealth.com www.moneytreepodcast.com https://www.facebook.com/moneytreepodcast/ https://www.linkedin.com/in/kirkchisholm/ https://twitter.com/kirkchisholm https://www.facebook.com/iagwealth info@innovativewealth.com Free gift: https://www.innovativewealth.com/InvestorMindset **RECOMMENDED BOOKS: ** The Soul of Money: Lynne Twist Irresistible: Adam Alter 3. Extreme Ownership: Jocko Wilink & Leif Babin 4-Hour Body: Tim Ferris

Bad News Is Good News.   The stock market jumped today off the heels of a terrible jobs number. Tim examines why this is the case, where we've been and where we're going.   We also get into Jerome Powell's statement that the unconventional policies are now conventional and that the economic expansion will be maintained at all costs.           Text Libertyadvisor to 71441 to be entered to win the monthly raffle.  More importantly than winning a raffle we need a way to keep in touch other than theytube. Follow and Listen to Tim Picciott commercial free on Bitchute, Dlive, as well as most MP3 Platforms.  Find all the links here: www.thelibertyadvisor.com/showlinks Tim's Free Ebook –  http://www.howitsrigged.com Support Wam:   JOIN US on SubscribeStar the PATREON ALTERNATIVE: https://www.subscribestar.com/world-alternative-media   www.anarchovegas.com Use promo code “WAM” to save money~ HOW YOU CAN HELP KEEP WAM ALIVE!   GoFundMe: https://www.gofundme.com/w3e2es     Patreon: https://www.patreon.com/user?u=2652072&ty=h&u=2652072     Bitcoin: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU   *Join Our Affiliate! Mike Maloney's GoldSilver linked below! * https://goldsilver.com/?aff=WAM     Winnipeg Crypto Conference: https://winnipegcryptoconference.com/ Use promo code "WAM" to save money! Buy John's Book: https://amzn.to/2PSJjWZ       The information contained is strictly for informational purposes only.  Please consult with your own financial advisor before making any investment decisions.  Investing into Crypto Assets is incredibly risky and you should not do so on your own unless you have considerable knowledge in this field and can afford to lose money.  If you do not have an advisor or would like to work with Tim Picciott and his investment firm.  Tim is offering 15 minute complimentary investment consultations with his firm:  Innovative Advisory Group, LLC. Complimentary Consultation: Bit.ly/bookwithtimp

Youtube Video here: https://youtu.be/FHh1GDXJRS0     John Sneisen and Financial Advisor Tim Picciott talk about the real estate bubble popping in Vancouver and how the Vancouver housing market has hit 30-year record lows by far in house sales for April being at 130. The average condo prices in Vancouver are year over a year down 19%. With a lack of new borrowers and an entry price into owning real estate at $120k in personal income needed it is clear that the Vancouver housing bubble has hit its peak and is declining. The Detached home prices are down over 10.5% in Metro Vancouver area as of March 2018. They also touch upon how the head of Canada Morgage and Housing Corporation said in an interview with Bloomberg BNN that Canadians need to stop glorifying homeownership as a savings vehicle. The new CMHCtries to boost homeownership by offering qualified first-time home buyers a 10 percent shared equity mortgage for a newly constructed home or a 5 percent shared equity mortgage for an existing home. It is a bandaid to try to stop housing from collapsing after the mass printing of currency by setting interest rates low. They report on how the Monetary supply M1 and M3 in Canada have been increasing at one of the fastest rates in the world since 1995 about 500% and since 2007 250%. Most of this currency has floated into real estate and the TSX. It has created a debt bubble in private debt at one of the highest levels in the world with almost 270% private debt to the GDP. Delinquency rates are up all across Canada and not to mention Toronto that has a very similar real estate bubble as Vancouver. They ask how can this be sustainable and will Canada be the first major Western Economy to drop their interest rates to scare off the inevitable debt bubble created in Canada. With Oil down and debt up will Bank of Canada put forward big stimulus programs to try to save the economy from the bubble it has created? Only time will tell, but we are getting close to the end game.   Tim's Free Ebook –  http://www.howitsrigged.com Buy John's Book: https://amzn.to/2PSJjWZ Stream Tim Content: Dlive-  http://bit.ly/2WuJH01 Twitch- http://bit.ly/twitchliberty   Subscribe to The Liberty Advisor Podcast: Podbean- http://bit.ly/podliberty Itunes- http://bit.ly/itunesliberty Google play- http://bit.ly/2Jspqoi Player.FM-  http://bit.ly/playerliberty Stitcher- http://bit.ly/stitcherliberty   Watch Tim's Content Bitchute- http://bit.ly/bitchuteliberty Theytube/ youtube- http://bit.ly/theytubeTim   Follow Tim Picciott: Join Minds.com: https://www.minds.com/register?referrer=thelibertyadvisor                                      http://bit.ly/libertyminded Steemit- https://steemit.com/@timpicciott/feed Facistbook-  https://www.facebook.com/thelibertarianadvisor/   Ditch Google and get paid to search anonymously using PRESEARCH:  https://presearch.org/signup?rid=1293283   Support Wam: JOIN US on SubscribeStar the PATREON ALTERNATIVE: https://www.subscribestar.com/world-alternative-media GET YOUR TICKETS for The Red Pill Expo 2019 here: https://redpillexpo.org/rpe/wam/ *Join Our Affiliate! Mike Maloney's GoldSilver linked below! * https://goldsilver.com/?aff=WAM Winnipeg Crypto Conference: https://winnipegcryptoconference.com/ Use promo code "WAM" to save money! www.anarchovegas.com Use promo code “WAM” to save money~ HOW YOU CAN HELP KEEP WAM ALIVE! GoFundMe: https://www.gofundme.com/w3e2es Patreon: https://www.patreon.com/user?u=2652072&ty=h&u=2652072 Bitcoin: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU     The information contained is strictly for informational purposes only.  Please consult with your own financial advisor before making any investment decisions.  Investing into Crypto Assets is incredibly risky and you should not do so on your own unless you have considerable knowledge in this field and can afford to lose money.  If you do not have an advisor or would like to work with Tim Picciott and his investment firm.  Tim is offering 15 minute complimentary investment consultations with his firm:  Innovative Advisory Group, LLC. Complimentary Consultation: Bit.ly/bookwithtimp

The Impending Fracking Bust - How Debt Created and Destroyed the Fracking Industry Full video here: https://www.youtube.com/watch?v=vMCHdi2sXtI&t=9s   John Sneisen and Tim Picciott report on the North American Shale Oil Boom and Bust. As a Bloomberg article goes into Pioneer Natural Resources Company is struggling and are asking one-third of its management to retire. The Shale Oil Boom and now impending bust as oil prices struggle to recover back up to profitability is hitting the hydraulic fracturing oil extraction businesses hard. The struggle to be profitable and with mass amounts of debt and long bond issues, the fast depleting wells are struggling to give investors and companies a return on investments. Environmental issues are another problem as well for the sector and have not helped the industry at all. With cheap debt, this was made possible, but with interest rate increases and the lack of profits, the most fracking companies are in deep red as debt is propping them up into a zombie state. It seems like the monetary drugs have run out and the impending big bust is coming to the sector that made the US the top oil producer in the world. They also go into how it's not only shale oil and gas that is having issues, but also other sectors that have borrowed cheap money and can only afford to pay the interest on their debts. There is over 15% of corporations in the United States that only pay interest rates, and they are called zombie corporations, but it doesn't stop there. Almost all of the world governments are in the red as well. We also report on how CNN is in the category above and welfare of debt and corporation pouring money into the company from debt-ridden corporations on their death bed. CNN had to let 300 employees go as we see mainstream media with fewer and fewer viewers are getting outcompeted by small and effective independent alternative media. Tim's Free Ebook –  http://www.howitsrigged.com Buy John's Book: https://amzn.to/2PSJjWZ Stream Tim Content: Dlive-  http://bit.ly/2WuJH01 Twitch- http://bit.ly/twitchliberty   Subscribe to The Liberty Advisor Podcast: Podbean- http://bit.ly/podliberty Itunes- http://bit.ly/itunesliberty Google play- http://bit.ly/2Jspqoi Player.FM-  http://bit.ly/playerliberty Stitcher- http://bit.ly/stitcherliberty   Watch Tim's Content Bitchute- http://bit.ly/bitchuteliberty Theytube/ youtube- http://bit.ly/theytubeTim   Follow Tim Picciott: Join Minds.com: https://www.minds.com/register?referrer=thelibertyadvisor                                      http://bit.ly/libertyminded Steemit- https://steemit.com/@timpicciott/feed Facistbook-  https://www.facebook.com/thelibertarianadvisor/   Ditch Google and get paid to search anonymously using PRESEARCH:  https://presearch.org/signup?rid=1293283   Support Wam: JOIN US on SubscribeStar the PATREON ALTERNATIVE: https://www.subscribestar.com/world-alternative-media GET YOUR TICKETS for The Red Pill Expo 2019 here: https://redpillexpo.org/rpe/wam/ *Join Our Affiliate! Mike Maloney's GoldSilver linked below! * https://goldsilver.com/?aff=WAM Winnipeg Crypto Conference: https://winnipegcryptoconference.com/ Use promo code "WAM" to save money! www.anarchovegas.com Use promo code “WAM” to save money~ HOW YOU CAN HELP KEEP WAM ALIVE! GoFundMe: https://www.gofundme.com/w3e2es Patreon: https://www.patreon.com/user?u=2652072&ty=h&u=2652072 Bitcoin: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU     The information contained is strictly for informational purposes only.  Please consult with your own financial advisor before making any investment decisions.  Investing into Crypto Assets is incredibly risky and you should not do so on your own unless you have considerable knowledge in this field and can afford to lose money.  If you do not have an advisor or would like to work with Tim Picciott and his investment firm.  Tim is offering 15 minute complimentary investment consultations with his firm:  Innovative Advisory Group, LLC. Complimentary Consultation: Bit.ly/bookwithtimp

WAM Contributor Tim Picciott "The Liberty Advisor" breaks down the ramifications of Donald Trumps latest twitter spat involving new tariffs on China. In addition to the Tariffs, Tim also discusses alternatives to the SWIFT and Petrodollar systems and an interesting correlation between the stock market and elections.   Tim's Free Ebook –  http://www.howitsrigged.com Buy John's Book: https://amzn.to/2PSJjWZ Stream Tim Content: Dlive-  http://bit.ly/2WuJH01 Twitch- http://bit.ly/twitchliberty   Subscribe to The Liberty Advisor Podcast: Podbean- http://bit.ly/podliberty Itunes- http://bit.ly/itunesliberty Google play- http://bit.ly/2Jspqoi Player.FM-  http://bit.ly/playerliberty Stitcher- http://bit.ly/stitcherliberty   Watch Tim's Content Bitchute- http://bit.ly/bitchuteliberty Theytube/ youtube- http://bit.ly/theytubeTim   Follow Tim Picciott: Join Minds.com: https://www.minds.com/register?referrer=thelibertyadvisor                                      http://bit.ly/libertyminded Steemit- https://steemit.com/@timpicciott/feed Facistbook-  https://www.facebook.com/thelibertarianadvisor/   Ditch Google and get paid to search anonymously using PRESEARCH:  https://presearch.org/signup?rid=1293283   Support Wam: JOIN US on SubscribeStar the PATREON ALTERNATIVE: https://www.subscribestar.com/world-alternative-media GET YOUR TICKETS for The Red Pill Expo 2019 here: https://redpillexpo.org/rpe/wam/ *Join Our Affiliate! Mike Maloney's GoldSilver linked below! * https://goldsilver.com/?aff=WAM Winnipeg Crypto Conference: https://winnipegcryptoconference.com/ Use promo code "WAM" to save money! www.anarchovegas.com Use promo code “WAM” to save money~ HOW YOU CAN HELP KEEP WAM ALIVE! GoFundMe: https://www.gofundme.com/w3e2es Patreon: https://www.patreon.com/user?u=2652072&ty=h&u=2652072 Bitcoin: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU     The information contained is strictly for informational purposes only.  Please consult with your own financial advisor before making any investment decisions.  Investing into Crypto Assets is incredibly risky and you should not do so on your own unless you have considerable knowledge in this field and can afford to lose money.  If you do not have an advisor or would like to work with Tim Picciott and his investment firm.  Tim is offering 15 minute complimentary investment consultations with his firm:  Innovative Advisory Group, LLC. Complimentary Consultation: Bit.ly/bookwithtimp

Watch full video here:https://www.youtube.com/watch?v=NPwNtWxZYvI   In this video John Sneisen and Financial Advisor Tim Picciott talks about the recent world first blockchain transaction between two central banks.   The name of the project from the Bank of Canada is Jasper. The central bankers in Singapore and Canada now have a blockchain clearing mechanism that works.   Is Project Jasper the coming death of your personal and individual freedom? If you loose the last part of your individual freedom the economic transaction of value without being tracked and taxed to death. That will be a digital tyranny much like what China is building through their Sesame Credit system. Would you live in a world that is centralized and controlled or decentralized so no one can get power over you and your money? To save the global economic system we think that they need to push for a cashless society, but can they pull it off? We ask this and many other questions including the Cycles of Centralization vs. decentralization through the centuries Stay tuned for more from WAM!   DON'T MISS AnarchoVegas 2019! Use promo code: WAM Save 10% on your tickets! Get your early bird tickets now at: www.AnarchoVegas.com CHECK OUT The Red Pill Expo 2019 here: https://redpillexpo.org/rpe/wam/ Please subscribe to the Liberty Advisor Show to have Tim's latest material sent straight to your favorite streaming device: https://libertarianadvisor.podbean.com/       Tim's Free Ebook –  http://www.howitsrigged.com Buy John's Book: https://amzn.to/2PSJjWZ Stream Tim Content: Dlive-  http://bit.ly/2WuJH01 Twitch- http://bit.ly/twitchliberty   Subscribe to The Liberty Advisor Podcast: Podbean- http://bit.ly/podliberty Itunes- http://bit.ly/itunesliberty Google play- http://bit.ly/2Jspqoi Player.FM-  http://bit.ly/playerliberty Stitcher- http://bit.ly/stitcherliberty   Watch Tim's Content Bitchute- http://bit.ly/bitchuteliberty Theytube/ youtube- http://bit.ly/theytubeTim   Follow Tim Picciott: Join Minds.com: https://www.minds.com/register?referrer=thelibertyadvisor                                      http://bit.ly/libertyminded Steemit- https://steemit.com/@timpicciott/feed Facistbook-  https://www.facebook.com/thelibertarianadvisor/   Ditch Google and get paid to search anonymously using PRESEARCH:  https://presearch.org/signup?rid=1293283   Support Wam: JOIN US on SubscribeStar the PATREON ALTERNATIVE: https://www.subscribestar.com/world-alternative-media GET YOUR TICKETS for The Red Pill Expo 2019 here: https://redpillexpo.org/rpe/wam/ *Join Our Affiliate! Mike Maloney's GoldSilver linked below! * https://goldsilver.com/?aff=WAM Winnipeg Crypto Conference: https://winnipegcryptoconference.com/ Use promo code "WAM" to save money! www.anarchovegas.com Use promo code “WAM” to save money~ HOW YOU CAN HELP KEEP WAM ALIVE! GoFundMe: https://www.gofundme.com/w3e2es Patreon: https://www.patreon.com/user?u=2652072&ty=h&u=2652072 Bitcoin: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU     The information contained is strictly for informational purposes only.  Please consult with your own financial advisor before making any investment decisions.  Investing into Crypto Assets is incredibly risky and you should not do so on your own unless you have considerable knowledge in this field and can afford to lose money.  If you do not have an advisor or would like to work with Tim Picciott and his investment firm.  Tim is offering 15 minute complimentary investment consultations with his firm:  Innovative Advisory Group, LLC. Complimentary Consultation: Bit.ly/bookwithtimp

If you look at some of the wealthiest people in this country, you will notice that a lot of them are real estate owners. Picking up from where we left off, we finish laying down the seven powerful tools that these real estate tycoons have used to create and build legacy wealth. Still with Kirk Chisholm from Innovative Advisory Group, we talk about inflation and deflation and how you can take advantage of those, as well as debt reduction and the tax benefits of real estate. Learn more about these tools as you discover why real estate is considered as one of the best investments to be in. Combine what you have learned in this two-part series and create your own long-term strategy to start building wealth. Episode show notes: http://www.PassiveRealEstateInvesting.com/7-powerful-tools-to-create-legacy-wealth-from-real-estate-part-2   Download your FREE copy of The Ultimate Guide to Passive Real Estate Investing: http://www.NoradaRealEstate.com/FreeGuide/?utm_source=Episode_Summary   IF YOU LIKE THIS PODCAST we would love if you would go to iTunes and Subscribe, Rate & Review our podcast. This will greatly help share our podcast with others wanting to learn. Thank you! Learn more about your ad choices. Visit megaphone.fm/adchoices

The principle of owning real estate to become wealthy has never been more true today than it was back then. Simply think of the many investors who have built enormous wealth and rose up to create their own legacy from it. In this two-part series, we go deep into the ways these real estate tycoons were able to succeed. We cover the seven powerful tools that they’ve used to create legacy wealth, starting with why cashflow is king and how you can introduce leverage into the equation. We also delve into the benefits and power of real estate with Kirk Chisholm, a Wealth Manager and Principal at Innovative Advisory Group. Kirk takes us into what they do over at the company, sharing some advice on investing and more. Episode show notes: http://www.PassiveRealEstateInvesting.com/7-powerful-tools-to-create-legacy-wealth-from-real-estate   Download your FREE copy of The Ultimate Guide to Passive Real Estate Investing: http://www.NoradaRealEstate.com/FreeGuide/?utm_source=Episode_Summary   IF YOU LIKE THIS PODCAST we would love if you would go to iTunes and Subscribe, Rate & Review our podcast. This will greatly help share our podcast with others wanting to learn. Thank you! Learn more about your ad choices. Visit megaphone.fm/adchoices

Who is Kirk Chisholm? He's a Principal Adviser at Innovative Advisory Group. He's also been a wealth manager since 1999, successfully navigating 2 bull and bear markets. He has a strong focus on risk management and thinking outside the box in his assessment of markets and macro trends. One area that is unique to Kirk and his firm is that he is an expert with self-directed IRAs invested in alternative investments (crypto-currencies, gold, real estate, private mortgages, land, private company stock, tax liens and more). This area of investing is virtually unknown to most investors. And today on CEO Money, he's sitting down with Michael to talk about what that means for the private sector and how he and his team can help! To learn more about Innovative Advisory Group, visit their website at www.InnovativeWealth.com.

                Pensacola Business Radio: Pod Guest Series Episode 5, Guest: Kirk Chisholm, Innovative Advisory Group Kirk Chisholm Wealth Manager & Self Directed IRA Advisor TITLES: Wealth Manager & Principal, Innovative Advisory Group LOCATION: Lexington, Massachusetts INDUSTRY EXPERIENCE: 19 years CONTACT: WWW.INNOVATIVEWEALTH.COM LinkedIn | Twitter | Facebook MEDIA CONTACT: […] The post Pensacola Business Radio: Pod Guest Series Episode 5, Guest: Kirk Chisholm, Innovative Advisory Group appeared first on Business RadioX ®.

Did you know you could buy a horse as an investment in your IRA? What about real estate and other assets? Kirk Chisholm, of Innovative Advisory Group, joins us to explain how self-directed IRAs work. They a tricky thing, so you need to understand the rules before taking any action. You will learn what a Disqualified Person is, the rules behind handling real estate in an IRA, and what other things you can find in a self-directed IRA. For more information, visit the show notes at http://www.bigpictureretirement.net/089

Your IRA (Individual Retirement Account) is a great retirement tool. Are you using it in the most efficient manner? Kirk Chisholm, Principal of the Innovative Advisory Group, shares some common misconceptions and mistakes people make with their IRA account. Kirk explains the difference is between a standard account and a self-directed account. He encourages investors to consider the self-directed approach because of its flexibility. He stresses the importance of understanding your investments and knowing your options. Listen now learn how to use an IRA account to its fullest potential. Are you afraid the market might crash? If so, consider doing this: Fear plays a part in every investor’s decisions. Are you letting fear paralyze your investments or are you able to manage your financial anxiety? In 2013, Doug interviewed Nobel Prize winner Gary Becker, and discussed the role fear plays in people’s financial decisions. Doug compiled a summary of the interview along with a list of tips for nervous investors. Click here to download the tips. Free Download: If You’re Afraid the Market Will Crash, Here’s What to Do Learn more about Kirk Chisholm at www.innovativewealth.com. He is offering a free resource for Goldstein on Gelt listeners, download: 9 Common Mistakes Made By Self Directed IRA Investors. To learn more about Roger Whitney and his 5-minute retirement plan, go to rogerwhitney.com/5minuteretirementmakeover. If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.

"Stand your ground. Do not fire unless you are fired upon, but if they mean war, let it begin here." 1775, Battle of Lexington and Concord, Captain Parker Intro: Kelly Coughlin is CEO of BankBosun, a management consulting firm helping bank C Level Officers navigate risk and discover reward. He is the host of the syndicated audio podcast, BankBosun.com. Kelly brings over 25 years of experience with companies like PWC, Lloyds Bank, and Merrill Lynch. On the podcast, Kelly interviews key executives in the banking ecosystem to provide bank C-Suite officers risk management, technology, and investment ideas and solutions to help them navigate risks and discover reward. And now your host, Kelly Coughlin. Kelly Coughlin: This is part-two of my interview with Kirk Chisholm, a wealth manager with innovativewealth.com and the Innovative Advisory Group in Lexington, Massachusetts. Kirk, are you still on the line? Kirk Chisholm: I'm still here, Kelly. Kelly Coughlin: Great. Kirk, let's talk about Lexington. That's a famous town in American early Republic history. Kirk Chisholm: Yes, it is. We are surrounded by our country’s heritage. I'm actually surprised at how few people, where I say where I'm from, who actually point that out. I appreciate you pointing that out. Kelly Coughlin: I love early Republic history and Revolutionary War stuff. I have since I was in fifth grade, I think. Kirk Chisholm: We have a lot of that in Boston, too. It's all over the place. It's really interesting. I think living here, we don’t appreciate the heritage that surrounds us everywhere. I walk around the city and I see it, but I don’t always appreciate it, because we're surrounded by it every day. It's nice, especially times like the 4th of July, when they have the parades in Lexington. It's nice. Nice thing to bring you back to the way things used to be hundreds of years ago. Kelly Coughlin: Well, Kirk, just to get caught up here. In our first interview, we talked about more of the mechanics of IRA custodians and trustees in the alternative space. While it's a topic that I think tends to be a bit of a boring topic, the work that you've done in this space is very impressive. Since our first interview, I've dug into more of what you've put out, and I would highly recommend that people that are interested in this space go in and get your publication, Ultimate Insider’s Guide to Self-Directed IRA Custodians and Administrators. If you're really bored with your life, go get that book, and you'll be an expert on it. It's quite impressive what you've done. In part one, we talked about the “sausage” of these custodians and administrators, and the features and benefits that are required and customer service and a little bit on fees. Today, I thought we'd talk about some alternative investment choices and options that individuals can have in their IRA, and I want to start out with a discussion about holding real estate in an IRA. How does that work, and doesn't that present some problems? Unlike traditional securities, once you buy it, then there's really no ongoing cost to maintain the asset. Real estate is just the opposite of that. You've got physical maintenance costs, insurance. You've got taxes. You've got all these costs related to just holding the asset. If it's a rental property, you've got to collect the rents. If you own this asset in your IRA, do all of the costs to hold the asset and to maintain the asset and the receipts on the asset, do all of those revenues and expenses have to go through the IRA? Or can you carve expenses out and deduct those? That kind of thing. Kirk Chisholm: It's a really interesting topic. Real estate, while it is the most common alternative asset held in IRAs, it is also one of the more complicated ones. I always find this interesting that people want to invest in this complicated structure. This is just without an LLC. This is just straight real estate. The way it works is this. You cannot transact with your IRA. You cannot sell a piece of real estate to your IRA. Your IRA cannot sell a piece of real estate to you. You're a disqualified person as are some other people. There's a list of disqualified people. You cannot transact with yourself. Effectively— Kelly Coughlin: With any asset, not just real estate. Is that correct? Kirk Chisholm: Any asset, yes. Any asset. That's a clear rule in the Internal Revenue code. What's interesting is, you have to consider your IRA like one of the neighbors on your street that you really don’t like. You're not going to loan this guy money. You're not going to work for free on his house, help him out for free. You're not going to let him borrow your lawnmower. There's things that you don’t like the person, you're not going to do these things for them. You have to treat your IRA the same way. You can't loan your IRA money. You can't work on the real estate, because that would be called sweat equity. You're not going to give away your labor for free to some other person. There's many things you cannot do. You have to look at your IRA as completely separate entity, in that if you own a piece of real estate, you're going to have a broken toilet. You're going to have to fix the roof. All of these different things are part of owning rental property. In the case of real estate, you have to hire somebody to do these things. You cannot fix your own toilets, and I know the landlords out there listening to this are going to cringe at the idea of hiring somebody to do something they can do themselves. It's hard, but you cannot do it yourself. If you think you're trying to get around the rules, I can assure you, you won't. The IRS is much smarter than you. Kelly Coughlin: You can't set up an LLC management company to do that on your behalf? Kirk Chisholm: Who’s the owner of the LLC? You? Then, no. Owned by some other third person at arm’s length? Then, maybe. You have to hire somebody else. You can do the hiring. You just can't do the work. You could do administrative functions. You can pay the bills. You can hire people, but you can't do the work yourself. You basically have to find a property manager to do it for you. It's the easier way to do it. Through this process, your IRA has to pay for these fixes. If they have a new roof, you have to make sure you have enough money in your IRA to pay for that roof. Effectively, that's one of the problems with real estate is that you might buy it for $100,000, but you need to have an extra $20,000 or $50,000 sitting around for expenses, for other things, just to make sure that you don’t run out of cash. Or, you have a good line of credit somewhere. Then, when you borrow money, that brings up another level of this, which makes it more complicated. Your IRA, like yourself, potentially can file a tax return. You might think, you own real estate in an IRA. I don’t have to pay taxes. Maybe. If you're buying it just straight out for all cash, then probably not, but if you have a mortgage on it, you may have to pay taxes. Look at it this way. If you buy a property for $200,000 and you put $100,000 into it, because that's all you have in your IRA, and you borrow the other $100,000, your equity is still $100,000. You don’t pay taxes on your equity. You pay taxes on the asset amount that you don’t have. You have $100,000 of assets that is backed by debt, you have to pay taxes on the levered amount. Effectively, 50% of your income is taxable, potentially. Now, that being said, you would have to file a tax return on your IRA, which of course, you also get the deductions of real estate, so you may not have to pay taxes. The levered amount would be treated as if it was an individual. You get the amortization. You get depreciation, the deductions, all of that. You do get all the benefits. You don’t lose those, but potentially, you would have to pay taxes on that. It does bring in a level of complication that many people are not aware of. Real estate is, on many levels, can be complex and in some ways, harder to deal with. If you own an LLC, that can make it easier for the custodian and for you, but it still has to go through the LLC. The process is the same. In some ways, it can be simpler, but in other ways, it can also raise more issue. Real estate is not simple. Other assets are generally simpler. You buy it and then it does what it does, but real estate tends to be a little bit more complicated because of all the moving parts. Kelly Coughlin: In addition to real estate, talk about other investments. What are you seeing out there? What are some of the most interesting choices that you see investors have made over the years that you've put into this business? Kirk Chisholm: We've got a lot of stories. I don’t where to begin, but I'll tell you a few of them. One of my all-time favorite assets to invest in, which actually is one of the earliest assets that I was looking at when I started this journey into self-directed IRAs was tax liens. The reason I love tax liens is because you're effectively getting essentially really high rate of interest. In the state of Florida, you can get 18% interest. You have a superior position to any mortgage or lien on the property. You're almost guaranteed to get paid off the money owed, or you would own the property. I look at it as a great asset that so few people know about, and it's such a great asset. I believe a few years ago, there were six banks that had $200 to $300 million portfolios of tax liens. It was just a phenomenal money maker for some of these firms. Certainly, the institutional demand has driven the rates down a lot, but you can still find good rates in some of these states. That's one of my favorites. Some of the other interesting ones was, I had a client who invested in a payday lending business in the state of Missouri. The state of Mass, I believe, the most you can charge interest without it being usury, I believe, is 20 percent. I think it's 20%, 25%, or something like that. Anything over that is usury. In the state of Missouri, you can charge 30% a month on some of these loans. I don’t think this individual is doing God’s work. He's really, I don’t want to say preying on the people, the underprivileged. Charging 30% a month, getting 360% a year on somebody who, it's basically on payday loans. They need money today, but they don’t get paid until Friday. They're borrowing at that rate. I don’t see that as a great business, but if you take out the moral implications and just look at it from the financial perspective, that's a pretty darn good business. Even if you have losses, you're still getting 100 to 200% returns, which is pretty fantastic. Kelly Coughlin: The only problem is, you've got to pay Tony Soprano, put him on the payroll, to collect for you. Kirk Chisholm: Oh, no. No, no, no. Not in the state of Missouri. On title loans, yes. You have to find a repo guy to repo the car. In payday loans, this is something that blows my mind. If I get a payday loan from you and I don’t pay you, the constable throws me in jail until I can pay. Now, how that is even remotely logical is beyond my comprehension. You're saying if I don’t pay, you're going to put me in jail until I can pay? How’s that going to work? How am I ever going to get out of jail? The process of some of these things is completely absurd, but the reality is, the laws in place support this activity. If you remove the moral implications, effectively it's a pretty strong way to collect. Like you said, Tony Soprano to collect for you, you don’t have to. The state is doing your job for you by putting these people in jail. The point I'm making is, it's an interesting asset class that I'm sure some people will find interesting, but it's one of many. We have another client who invested in a horse, a dressage horse. This I found extremely interesting. I knew nothing about dressage horses before this. My business partner did the due diligence. He became an expert on dressage horses. There are a lot of rules that you have to abide by with IRAs and 401ks, and there are a lot of exceptions to those rules, and there are some exceptions to those exceptions. Kelly Coughlin: Generally speaking, you cannot do the work on the asset. Once it gets funded, you've got to keep an arm’s length or relationship with that asset. Correct? Kirk Chisholm: Yes. I'll close up this little topic with this. Let's say you want to buy a business and you want to run that business and get paid for running that business. You cannot do that in your IRA, but you potentially can do it inside of a 401k. There are ways to do things. You just have to understand what the rules are and follow them. If there's exceptions, you can take advantage of those exceptions. There are ways to do things. Part of what we do in this process is working with our clients to help them facilitate the transaction so that it's not become a prohibited transaction, because we as a registered investment advisor are fiduciary. We're liable if we mess something up. We make sure that things are done absolutely correctly and there's no room for error. There are gray areas, because certain standards haven’t been defined by court cases or what have you, but we're not putting ourselves on the line. We're making sure that whatever we do is okay. When we do these things, we're definitely not playing in the charcoal part of the gray, if you know what I mean. Kelly Coughlin: Is that your sweet spot at Innovative Advisory Group? Helping clients that have these nuanced alternative investments they want to do? Whether it be they want to do something unique in their IRAs or their 401k? Is that your sweet spot? Or is your sweet spot investing in portfolio management, overall wealth management generally speaking? Kirk Chisholm: The way I would characterize it is this. We have a lot of clients who don’t work with alternatives, and that's fine. We're actually agnostic when it comes to asset classes or investments. We have our theories, as most people do. Everybody’s got a theory as to what works best, but in general, I don’t look at it and say, stocks are better than bonds or horses are better than cows or real estate is better than stocks. I don’t really care. I look at each investment individually, and I look at it and say, given the broad scope of what we have to work with, what is the best way to invest? And is this investment itself a good investment? We do a lot of traditional portfolio management, but when it comes to alternatives, there are really two types of clients that come to us. One type comes to us and says, I want to buy a horse in my IRA. Can you help me do this? Which we will. We have a lot of people come to us with very specific investments that they need help with, and that's a big part of what we do. We have another part of business where clients come to us and say, I just want to invest in alternative assets. I don’t like the stock market. It scares me. I don’t want any part of it. Can you please find me something that's alternative that makes sense? For those people, we have built up a network of investment sponsors that we do work with to help fulfill that need in the portfolio. We do have clients that have really interesting stuff. We don’t generally offer that to most of our clients, because it's very niche, and it's not what we do. We have found ways to be able to find, in our opinion, good alternative investments that are really lower risk and do provide consistent returns and things like that. We do have areas that we look at, and we're constantly expanding that. I know one area that we do actually a lot of work with is private mortgages. One of the reasons we like private mortgages is, both my partner and I love real estate. We think it's a great asset class for so many reasons. However, right now, I think real estate is expensive. I know that real estate is very closely tied with inflation. If we ever had deflation, real estate would be negatively impacted in ways that most people haven’t even thought of. I've written about this a few times. It's happening in Japan right now. In general, buying real estate long-term is great if you can find a great deal. When you have private mortgages, you more or less are investing in real estate. You get a yield that is reasonable to you. You know what that yield is. You don’t have to deal with tenants. You don’t have to deal with expenses. You don’t have to deal with all of the headaches that go along with real estate, but you still have a rate of return that's tied to real estate. You're getting your yield, whatever it is, 5, 10, 15%, whatever it might be, although I don’t advise finding a private mortgage for 5%, but some people do. You find, let's say call it 10% for the sake of argument. You get that yield. If they ever don’t pay you, you foreclose on the property. You own the property. If you're okay owning the property, then it's basically for the price that you lend the money. Then, you really have a pretty good investment there. We look at it and say, it's light work for the investors. It's not light work for us. We do a lot of work on it, but we don’t have a lot of the headaches that go along with owning real estate, and you don’t have to own it for 10, 20 years. Most of these private mortgages are one to two years. You have a very short maturity. You have a high rate of return, and if you do it right, you can do it relatively low-risk so that if the market turns sour and things get really bad out there, then these notes mature and you can use your cash to buy real estate or stocks at a discount. In our opinion, one of the better asset classes, given the current rate environment that we find ourselves in, we really like that asset class. There are some others, too, that we like, but that tends to be our most popular one at the moment. Kelly Coughlin: You've done a significant amount of work in this space of the self-directed IRA market. You've seen a lot of the providers out there, and you've seen a lot of different deals, a lot of different alternative assets that have come through your desk. I guess my question to you is, since our audience for this series of podcasts with you is really community and regional banks who I think it's safe to say, are not specialists in alternative asset business. It might be that many of them simply say, no. We're not doing that. Would it be an accurate statement for me to say that your position would be that any financial institution that doesn't specialize in this or that hasn’t adequately and thoroughly resourced this business line should stay out it? Should not get into it at all? Is that an accurate statement? Kirk Chisholm: Yeah. I would definitely agree with that. For the last 40 years with the IRAs have been in existence, some firms have come and gone from this part of the industry. I think that there are some banks on our list. They do this to a moderate degree, and there are some banks that provide custody for administrators and all they're doing is providing custody. They're not really doing anything else. The problem with the custodians, if you're doing that model is, you still have to provide oversight. You still have liability. Even though the administrators are doing all the legwork and the administration, as a bank you still have oversight. The administrators do something wrong, then you're ultimately liable. The bank still has to provide compliance on these accounts, which means, obviously you have to hire a compliance person to deal with this. If you're doing it at scale, then it perspective makes sense. If you're not doing it at scale, then it doesn't, because why are you going to hire $100,000, $125,000 compliance person to do a handful of transactions? Probably not high on your list of things to do. It can make sense in some ways. I think a lot of the administrators have collectively focused on only a handful of custodians that do most of their work. They provide their oversight, but in general I would say, most firms should not do this kind of work unless they're actually going to specialize and decide that they want to do this as a business model. You can't do this with a kind of sort of thing. You really have to put your efforts in. Kelly Coughlin: Okay. Then, the follow up to that would be this. We have a banker that listens to this. Let's say he's a CEO and he says, you know what? We're thinking about getting into this business. We're going to get out of it. Let's see if we can set up a relationship with Kirk and his group. Would you be willing to have a relationship with a community bank, whether it be in your footprint there or the state of Kansas or anywhere else where you would agree to help their customer that has an alternative asset, that needs some help, but you're not going to poach the relationship for the other part of the business? Are you open to that kind of relationship?   Kirk Chisholm: Yeah. It's a great question. We have relationships with many different financial institutions. We as a firm, we will work with other financial institutions, because they don’t know what they're doing with self-directed IRAs. They don’t have the experience. They don’t have the background or the infrastructure. What they'll do is, they'll say, we have a client who wants to invest in this horse. Can you help us? We will work directly with them on that, and manage that asset. We don’t poach the relationship with the client. We just work directly with the advisor. It's the same way we're working with a bank or another financial institution. If they want to come to us for a very specific transaction, we will work with them directly and make sure it's done properly. If a bank wanted to offer these services and do that, we certainly offer consulting services. Kelly Coughlin: Right. Your primary footprint is in Lexington. What county is Lexington in? Kirk Chisholm: Lexington is in Middlesex County, but we actually have clients all over the world. We are not location specific in our firm. We have clients across the country. We have some international clients as well. We're not really location specific. As I'm sure your audience knows, in this environment, it's becoming more and more virtual. We actually have fewer and fewer people who want to come back, stop by the office anyway. Everything is virtual now. Kelly Coughlin: Well, Kirk, I think you're doing some really terrific things. I keep picking on IRA custody as being kind of a boring sausage business, no sizzle, but you're doing some pretty interesting things with it. So, congratulations on that, and I know that you've got a business partner there who does a lot of the due diligence on deals. I looked at his resume. He seems like a pretty capable guy, too. So, congratulations on building a unique and high-value financial advisory wealth management practice. I think it's pretty cool. Kirk, why don’t you give us another plug for how listeners should get ahold of you if they wish? Kirk Chisholm: The easiest way to reach us is at our website. It's innovativewealth.com. On our website, there are a lot of free resources that you can learn more about us, about me, about self-directed IRAs and alternatives. Also, we have a free gift for listeners of this show. If you go to innovativewealth.combankbosun-podcast, you can get a free gift for that. Kelly Coughlin: Thank you for that. I want to put a plug in for this riveting publication. So exciting. A Quick Start Guide to Self-Directed IRAs. Kirk Chisholm: Yeah, thanks, Kelly. I appreciate that. I almost forgot to mention that. We put together a few resources for self-directed IRA investors, or CPAs and attorneys or people who specialize in the self-directed IRA space. Really, anybody who’s interested in this space. We have resources for pretty much all comers. There is a quick start guide to self-directed IRAs for people who are just learning about them and want to know more. It provides a lot of great resources to get you started on your journey. We have the Ultimate Insider’s Guide to Self-Directed IRAs, which effectively includes the Quick Start Guide. It's really comprehensive. If you're looking for a custodian or administrator for your retirement account, you have to pick between one of 47 companies. This resource will help you make that decision in the best way possible. We put together some really in-depth due diligence on each of these companies with over 100 data points in each one. We also have fee calculators for each of these companies, because even though there's a fee schedule, sometimes it's hard to figure out what you're actually going to pay. This fee calculator allows you to estimate what it would cost you to use this custodian based on your investment strategy. This is probably one of our more well sought-after resources. I can't tell you how many times people come to me and say, I'm just really unhappy with the fees I'm paying. I didn't know I was going to pay this much, but if you do all this research up front, you won't have that experience. The last one is really a comprehensive resource for people in the industry. It's really access to all of our research. You can get access through the website. Kelly Coughlin: I appreciate your time, and I wish you luck going forward. Kirk Chisholm: Thanks a lot, Kelly. Appreciate the opportunity to speak here. It was a lot of fun. Kelly Coughlin: Thanks. Cheers. Outro: We want to thank you for listening to the syndicated audio program, BankBosun.com. The audio content is produced and syndicated by Seth Greene, Market Domination, with the help of Kevin Boyle. Video content is produced by the Guildmaster Studio, Keenan, Bobson Boyle. Voice introduction is me, Karim Kronfli. The program is hosted by Kelly Coughlin. If you like this program, please tell us.  If you don’t please tell us how we can improve it. And now some disclaimers, Kelly is licensed with the Minnesota Board of Accountancy as a certified public accountant. The views expressed here are solely those of Kelly Coughlin and his guest in their private capacity and do not in any way represents the views of any other agent, principal, employee, vendor or supplier.

“My other piece of advice, Copperfield,” said Mr. Micawber, “Annual income twenty pounds, annual expenditure nineteen to nineteen six. Result happiness. Annual income twenty pounds, annual expenditure twenty pounds and six. Result misery.” David Copperfield (1850) Intro: Kelly Coughlin is CEO of BankBosun, a management consulting firm helping bank C Level Officers navigate risk and discover reward. He is the host of the syndicated audio podcast, BankBosun.com. Kelly brings over 25 years of experience with companies like PWC, Lloyds Bank, and Merrill Lynch. On the podcast, Kelly interviews key executives in the banking ecosystem to provide bank C-Suite officers risk management, technology, and investment ideas and solutions to help them navigate risks and discover reward. And now your host, Kelly Coughlin. Kelly Coughlin: Greetings. This is Kelly Coughlin, CEO of Bank Bosun, helping bank C-Suite execs navigate risk and discover reward in a sea of threats and opportunities. I've been in the financial services industry since I was 23 years old. That was a long time ago. Merrill Lynch, PWC, Lloyds Bank, Global Bridge. I've seen a lot of different products, services, strategies, and tactics, and other than during the periods where the industry blows it through errors, omissions, and to a certain extent, unrestrained greed, it truly is a terrific industry. One of the most interesting segments of the industry is the alternative investments area. The opportunities to invest in alternative investments has never been greater. Alternative investments can range from professionally managed venture capital investments and hedge funds to private LLC investments in a local real estate deal. Along with this huge increase in investment choices comes the ability for individual retirement accounts to make these investments. It used to be that IRAs could only invest in fairly plain, vanilla securities like registered investment companies, mutual funds, ETFs, and individual stocks and bonds. Now, IRAs can invest in just about any asset, but unlike an individual’s traditional, say a cash account where an investor can buy the asset and hold the evidence of the purchase of that asset whether it be an LLC agreement or a stock certificate in any place he or she wishes, in IRAs, you can only invest through an improved IRA trustee custodian. You can't just buy it yourself and hold it in your safe deposit box or file cabinet. You can only buy it through one of these approved IRA trustee custodians. In this world, you have two categories of approved trustee custodians. Bank custodians and non-bank custodians. I think the assumption is that all banks with banking powers are approved to hold IRA assets so they don’t need any special authorities. The other IRA trustee custodians are the non-bank custodian. The IRS maintains a list of a financial institution’s need to demonstrate some level of financial internal controls in order for them to get approved. Currently, there are about 75 financial institutions on that list. As I look at the list, it seems most of them are broker-dealer type organizations. The subject of this podcast is on the IRA trustee custodian business. Why? Recall, I said alternative investments are one of the most interesting segments of the financial services industry. IRA trustee custody is probably one of the most dull and uninteresting segments of the business. A famous marketing guy, I think it was Elmer Wheeler from upstate New York, a sales guru in the mid-1900s said, sell the sizzle, not the sausage. I'm here to tell you that there ain't much sizzle in the IRA custody business. While I think Napoleon said, man should not know how laws and sausage are made, today we're going to learn a little bit about how the sausage is made and why it's important, and what we need to know to evaluate the sausage maker that is the IRA custodian. With that in mind, I'm going to interview a very, very sharp financial advisor from Lexington, Massachusetts. He's a wealth manager and principal at Innovative Advisory Group. In addition to traditional investing, portfolio management, and wealth management, he is especially strong in the self-directed IRA business and the alternative investment area. His name is Kirk Chisholm. He's produced an online course titled The Ultimate Insider’s Guide to Self-Directed IRA Custodians and Administrators, and the publication A Quick Start Guide to Self-Directed IRAs. Kirk has turned what some people, including financial institutions like bank IRA custodians and non-bank IRA custodians into a sizzling business line at Innovative Advisory Group. With that in mind, I'm hoping I have Kirk on the line, all the way from Lexington, Massachusetts. Kirk, are you there? Kirk Chisholm: I am. How’s it going, Kelly? Kelly Coughlin: Great, Kirk. Thanks for attending. I hope you're doing well. Did you hear my intro there, Kirk? Kirk Chisholm: I did, yes. Kelly Coughlin: Anything you disagree with on that? Kirk Chisholm: No. I thought it a very descriptive intro, yeah. Kelly Coughlin: Okay. Great. I'm really looking forward to talking to you. You're obviously a sharp and capable guy in this space, and you're a recognized expert. You were recognized as one of the top financial advisors in the country. Tell us about this. Was that at USA Today? Or where was that? Kirk Chisholm: Yeah. Thanks. That was a recent accolade I received. It was very unexpected, and it was very nice to be acknowledged. Investopedia had a list of the top 100 most influential financial advisors, and I was ranked number seven. I have to say, I was surprised to be up there. There were a lot of great people who are in the top 10, and I know many of them and they've all done a great job. I'm humbled to be among such a great group. Kelly Coughlin: Excellent. That's great. Let's get right into it. You know what we're going to talk about here. You focused a bit of your career on IRA custody and trustee business. Why has that been such a point of interest and focus for you? Kirk Chisholm: I'll tell you a little story. It's interesting. A number of years back, I was working for the wire house channel at Smith Barney. One of my longtime clients came to me and said, I want to invest in this private mortgage. I said, great. That's awesome. He said, I'd love to do it with my IRA. You can do that? He went on to tell me, apparently, somebody had educated him about it. I started reading up on it and realized, wow, this is fantastic. I don’t have to limit my clients’ IRA funds to stocks, bonds, and mutual funds. There is a virtually unlimited amount of investments out there, and to limit yourself doesn't seem like the best option. I went and talked to my manager and said, my client wants to do this. Can we do it? He said, no. You can't do that. I said, no, actually you can do it, and I went on to explain to him how you can do it and how it works. He said, well, you're right. You can, but we can't. Then, the lightbulb went off. My client was a longtime client. He's a good friend of mine. I wasn't getting paid for it, but I helped him through the process. I went and took the next three months to research the process, and this was back before the Internet was a big deal. There was information out there, but it wasn't a lot. It took me a while to do this research. I was trying to do it right. I wanted to make sure he didn't get himself into trouble. Came to the conclusion that this was such a great opportunity for investors, and nobody knows about it. Spent the next six months researching custodians and administrators and trying to learn the inside and out of each of these companies, and it took me a long time to do this research. Really spent the next few years trying to figure out how I can work with my clients on this, because I saw so many interesting opportunities outside of the stock market that I really wanted to try to take advantage of that. My partner and I started our current firm, and really the point of it was to focus on providing advice to alternative investments inside of self-directed IRAs. So, while we do traditional wealth management services like tens of thousands of other financial advisors out there, we also offer this specialty, which very few people understand. I think there are currently, there's about 4 or 5% of IRA holders are holding alternative assets. There's very few of them that are actually doing that. Out of the IRA holders, let's say maybe no more than 10% are even aware that this can be done. Most people don’t even know. It's too bad, because some people have some really interesting investment strategies just for their personal taxable money, and if they were to use their retirement funds, they would have a lot more opportunities available to them, especially when many of them don’t contribute to their retirement funds because they don’t want that money to go into things they don’t understand. They want it to go into investments that they do understand.   An interesting story. When I was, I think, about a year in, I had started at Paine Webber back when they were Paine Webber. About a year in, I had spoke to this individual who owns real estate. I was talking to him about how he ought to diversify into other investments. He said, look, all money goes into real estate. Every nickel I have goes into real estate. Why would I ever invest into stocks, bonds, and mutual funds? I know real estate. I don’t know stocks. Why would I ever do that? I said, I can't argue with you. If you're doing well with real estate and that's your expertise, you should definitely not invest in things you don’t know. At the time, I wasn't aware of this, but real estate happens to be the most common asset held in self-directed IRAs. There are a number of people who are actively using this asset, but in general, most people are not aware of this type of investment strategy. Kelly Coughlin: They can't buy the actual asset itself. They can buy an LLC, C-Corp, that sort of thing, that holds real estate. Probably not a sub-S. They can't buy the asset directly, correct? Kirk Chisholm: Well, they can, actually. People always ask, what can you invest in? It's probably easier to say what you cannot invest in, because what you can invest in is virtually unlimited. What you cannot invest in is what is described in the Internal Revenue code pretty explicitly is, you cannot invest in collectables. You cannot invest in life insurance on yourself, and you cannot invest in S-Corps. There are some other nuances there, but more or less, those are some things you cannot invest in. There are exceptions to those, but more or less, the S-Corps, you're correct. But you can own real estate inside of an IRA. That is the most common asset held in IRAs that are alternative, is real estate or real estate-related investments. Many people own it directly. You can own it inside of an LLC or a C-Corp, which some people choose to do, but there's no limitations. It's up the individual to make that decision. The rules for the IRA, the IRA was established in 1974. Kelly Coughlin: Oh, ’74? That early? Kirk Chisholm: Yeah, with ERISA. Since then, the rules haven’t changed. They've changed a little bit, but this was always allowed. Even back then, you were allowed to invest in all of these different things. It's become an industry. The financial service industry has done a great job bit of marketing to people and convincing people that you have to index, you have to invest in mutual funds, you have to invest in stocks, because that's how they make their money. You can't blame them for that kind of marketing, but that's all people see. There's no contrary marketing that you should be doing something else. People don’t see that, so they have the message that this is what you should be doing. For some people, maybe that's the best choice, but it's not the best choice for everybody. I think the more people that are aware of this option, the more they'll be able to take advantage of their own expertise in certain areas. Side anecdote, which is kind of interesting. The collectables part. People ask, why collectables? They're an investment for some people, which is certainly true, and there are some collectables which are allowed. I wouldn't say collectables. There are exceptions, but certain coins are allowed within IRAs. Interestingly enough, the reason they put collectables in there was because, at the time they're writing the law, some stolen Nazi art has surfaced. They were afraid that if somebody ever put this stolen Nazi art in an IRA, nobody would ever be able to get it. They had that exception there. They said, you can't put collectables in there, because they were afraid they would never be able to get it again. Kelly Coughlin: That's really fascinating. You're saying, back in the ‘70s and ‘80s, you could buy these alternative assets in your IRA? Kirk Chisholm: Yes, yes. Some of these companies were started back then. Kelly Coughlin: I'm really surprised by that. I thought that this was more of a recent thing. Let me ask you this. It seems as if many of the custodians, especially the brokers who are interested in straight-through-processing on transactions, low-touch, high-volume transactions, they didn't want to have anything to do with these alternative deals. Is that a fair statement? Kirk Chisholm: The best way I would describe is this. If you're running a company, you want scale. You want to lower your expenses as much as possible and try to get as much scale as possible. These financial service companies have done a great job at that. The ETF world has taken what Vanguard started as indexing mutual funds and have lowered the expenses even more. The ETF world is erased to zero with expense ratios, but the industry itself has done a great job at scaling. When you're investing in securities, it's easy to scale. When you're investing in rental property and tax liens and horses, you can't scale that. If you wanted to invest in a horse in your IRA at one of these big discount firms, if your account is large enough, it's possible they might let you, but you probably wouldn't want to use them, because if they're specializing in stocks, bonds, and mutual funds, that's the place you want to go. If they have no idea what they're doing about investing in horses with an IRA, then that's not the firm you want to use to custody your IRA. Ultimately, there's a lot of back office paperwork that has to be done on their part. If they're not familiar with that process, then you don’t want them to mess it up. This is your retirement. The last you want is your retirement to get disqualified and you have to pay taxes on it. You don’t want to focus on companies just because you have your other accounts there. You want to focus on companies that have the best combinations for the investment strategy you're trying to pursue. Kelly Coughlin: Do the traditional bank and broker custodians accommodate this type of security willingly or begrudgingly? If they accommodate it. Kirk Chisholm: In general, they don’t accommodate it because they don’t understand it, and most likely you're talking to a customer service rep who has no idea. Your most common answer when you ask them to invest in a horse in your IRA is, you can't do that, because they just don’t know. They're not taught that this is an option. Now, if you have a big enough account, maybe you find somebody who is knowledgeable enough. They might say, yes. It can be done. I'm not sure if we can do it. I had a friend of mine who worked at one of the major broker-dealer firms. He had a big client. The client wanted to invest in an alternative asset. He went back, and big enough client, he's trying to make him happy. He went back and said, yeah, we can do that. The back office said, yeah, we'll take care of it. It literally took the next six months for them to come back and say, sorry, we can't do it. They tried. They tried to figure out. They couldn't figure it out. They finally said, no, we can't do it. They just don’t want that business. It's not scalable. They don’t make big money off of it. it's not just worth the time. They have to hire other people. It's completely understandable why they don’t want it. Recently, some of the custodians that have specialized in this area have been reaching out to these firms and have been working with them and providing sub-custody services. Some of these bigger discount broker-dealers can offer a sub-custody agreement, but are not advertising it, because it's not their main core business. Kelly Coughlin: In that sub-custody arrangement, is it fairly typical for the end investor to get one statement from the primary custodian and that sub-custodian asset rolls up into that? Or will they get two separate statements? Kirk Chisholm: It depends. Different firms have different arrangements. Some firms will just refer the business to the other firm. Some firms will keep it in-house. One of the more well-known names, after the financial crisis, they pretty much said, we don’t want any alternative assets, which of course gets rid of all the hedge funds that were being held at their firm. Typically, what they would do is charge them a flat fee per year, per asset, and then they would put it as a book entry on their statement. Then, after the financial crisis, they said, we don’t want this business and just told everybody to take a hike. Eventually, they said, all right. We'll take it back. I think with those firms, they don’t really understand that business, and they don’t want to deal with it. It's kind of a headache for them. I completely understand. I can't blame them. If I was them, I wouldn't want to do it, either. It's not a scalable business. It's a very different business model. I think in general, they don’t want that kind of a business, but now they do accept it more, because it is money. I still don’t think they're going to advertise a lot, because they don’t want to take away from their core money making business. Kelly Coughlin: Do you think it's a profitable business line for them? Or is it more or less a breakeven? If they can collect even fees to pay for the additional staff and, I don't know if there's any systems that are required? You think it's more or less a breakeven? Kirk Chisholm: I can't speak to whether it's breakeven or not. I think each firm has their own P&L. I wouldn't know specifically, but I would guess that it's probably a break-even or maybe even a loss leader just to keep the business, because they make so much money off the other part of the business. For them to just break even or even lose a little money to keep a client, in general, is probably worth it for them, because they're not doing that much of this business. They're not seeing a ton of it, but if you have an ultra high net worth client who has hedge funds, he's got $20 million at your discount brokerage firm, and he has $2 million in hedge funds, even if they're charging $75, $150 a year, even if you're losing money, it's worth it to you to keep that extra $20 million. I think in the large part, they see the bigger picture and just say, yeah, we'll do this for cost or close to it. That would be my guess, just based on what I see some of these other specialized firms charge, that most likely that's the case. The other thing, too is, most of these discount brokerage firms that do offer that, I'm not sure that they're offering that inside of IRAs. They're holding hedge funds for book entry on a statement. More times than not, that's actually taxable money. The IRAs, some of them do it. It's become a more recent thing, but they're not really specializing in it. Kelly Coughlin: Okay. You mentioned fees, and some of these companies that specialize in it. What kind of fees are you seeing for trustee and custody of alternatives? I assume it's got to be higher than holding $100,000 in mutual funds and ETFs. What kind of fees do you typically see? What's a low end? What's a high end? Kirk Chisholm: Fees are an interesting concept. If you're accustomed to a discount broker, you're probably with the recent reduction in many of the firms, you're probably looking at $5 a trade, which is pretty inexpensive to do a trade. These brokerage firms certainly make some money on that, but they also make money on the spreads. They make it different ways. They make it on cash, margin. There's many ways that they can make money. If you're considering a custodian that holds non-traditional assets, they're called a self-directed IRA custodian for short, you'll notice that these are a lot higher. Right now, there's 47 custodian administrators that specialize in this area. There might be a few other stragglers that are out there that don’t advertise, but more or less, that's how many are out there. Out of those firms, every single one of them has more or less a different fee structure. Kelly Coughlin: Are you including banks and non-banks? And are you then saying, yeah, there might be more than this, but there's really 47 that are active in this space? Kirk Chisholm: There are two different categories. There are custodians, which are typically non-depository bank custodians. Then, there are administrators, which are companies that just do administrative services. You might see them as a TPA and a 401k plan, or administrating insurance, or some other things. There's many uses for administrators, but these have decided to focus on alternative assets inside of IRAs. It's different from a custodian, but they're required to use a custodian. They might choose to find a local bank and custody of the assets there, and they would do the administrative services of it. Each of these firms, whether internally or some of it's outsourced, they would provide both administration and custody services. Administrators do not provide custody. They outsource it. The custodians provide custody and administrative services, but the administrative services are in-house. It's just a different business model. There are some other differences, but that's the basis of the difference. Kelly Coughlin: You say there are 47. How did they get to specialize in this? Kirk Chisholm: I actually created—this is such a huge list, and there are so many incorrect lists out there that we actually created a list on our website, because I've seen many lists, and some of them are inaccurate. They have companies on it that aren't even in the space. It's hard. We put together a really comprehensive list. Some of these companies are banks. They are local or regional banks that happen to have a branch or an arm of the bank that does wealth management services and does self-directed IRAs. Some of these are banks that do offer that. Other firms are exclusively set up to deal with this kind of business. That's all the do, or primarily that's what they do. There are enough people out there that want this service, even though it's only 4% of all IRA holders. It's still a decent amount of people. You're talking about tens of billions of dollars that are in this area within these firms, but each of these firms, they're all different. This is probably the most frequently asked question when people call us up. They say, what's the best custodian to use? We went through over a year worth of due diligence on all of these firms. We put together extensive resources on them. In the beginning, we thought, well, there will be a handful of best firms, and there are some firms which we prefer over others, but generally speaking, if you look at all these firms, you can't say there's a best firm. Each one of these firms is a little bit different. Their fees are different. Their assets that they allow are different. They're very hard to find a large number of firms that are the same in one area. Some of the larger firms are more common household names in this area, but generally speaking, real estate, for instance, is the most commonly held alternative in IRAs. Some of these firms don’t offer that. They will not custody real estate for one reason or another. While the Internal Revenue code restricts certain assets, everything else is allowed, but the custodians don’t have to allow it. The custodians can certainly impose more restrictions on what is allowed and not allowed in their own judgement. For instance, one firm that didn't offer real estate, I asked them a question, obviously. I said, why don’t you offer real estate? You're giving up a big chunk of business. They said, you know what? It's too much of an administrative nightmare for us. We don’t want to deal with it. We'd rather deal with simpler alternatives, and that's what they focused on. They have a decent client base. It's not as if they're hurting for business. They just decided to focus on other areas. There are plenty of alternatives out there that people focus on. There's one surprising one I'll mention, because I thought it was interesting. I've never come across this with a client, but I've done a little research, and it's interesting. The asset is church bond. One of these companies specializes in church bonds. Many of the companies don’t allow it at all. It's not a big asset class. There actually was a publicly traded closed end fund which converted to a mutual fund later, which was specifically focused on church bonds. There's a market for everything. It's just a matter of finding that market and trying to fill the need. Kelly Coughlin: I look at this IRA custody world in three primary categories to evaluate a custodian, and I'm not listing these in order of importance, but fees, features and benefits, and customer service. Is that a reasonable attribution of the categories that you would go through when you look at these 47 players in this industry? How much do you have to pay for it? What do you get for it? And what kind of service do you get from the provider? Kirk Chisholm: Yeah. I think that's a good starting point. I categorize them a little bit differently. Kelly Coughlin: You're the expert. Tell us how you like to categorize them. Kirk Chisholm: We do look at fees. Fees is a very important of the concept, and most investors put that at the top. I don’t, but they do just generally speaking, and I understand it. The fees is definitely an important part of that puzzle. Specialization is another part. As I was mentioning, many of these companies don’t offer all assets. Some of them specialize in certain area. Their most popular asset might be real estate, or it might be Reg-Ds, cryptocurrencies, or whatever it might be, but they have a most common asset or a most popular asset. If you figure it, they're doing a lot of business. If this is their most common asset, most likely they're going to be good at that asset or good enough. That's another thing we look at is, what are it specializations? We look at customer service. Always a very important part of the puzzle. As you stated, it's much of this is not scalable, so you're dealing with customer service. You're dealing with people that, if you have a rental property, somebody’s getting evicted or you're paying your electric bill. You need a roof fixed. You may have to converse with these people on a very frequent basis, or you may not. It depends on your investment, but it is important that customer service is knowledgeable. They understand the rules, they understand what you can and cannot do. They will never give you advice. Explicitly tell you they don’t give advice, but they will give you information on what some of the things that you can do or their parameters are. However, if you have a company that has 100,000 clients and they only have five customer service reps, I'd be pretty confident that you're not going to get great customer service. That's just a shot in the dark, but we look at those metrics and see. Every firm has a ratio of X amount of clients per customer service reps. This firm has only a handful and they've got a lot of clients, I look at that and just say, okay, that's probably not a good sign. We look at some other things, but that's the customer service piece. We also look at the transaction frequency in reviewing firms. This is not a firm-specific thing, but it's important, and this goes more to the fees in that some custodians have a transactional model, and some have an asset based model. Those are really the two main categories. There are some other different ones. There are some hybrids, but if you have one investment and it's not going to require any effort, you buy it and leave it for 20 years, then you don’t really want an asset based model. You probably want a transaction model, because it’ll end up being cheaper every year. Kelly Coughlin: As an account owner, you as a provider would like the asset based fee, right? Kirk Chisholm: Well, as a provider, it depends, and this goes to the “…every company’s different.” If you're offering a transactional model, the people that are going to gravitate towards you are people most likely that are in the buy and hold mentality, but if you're in asset based model, then most likely the people that are going to gravitate are the people who are flipping 10 houses in a year, because they don’t have to pay for each transaction. Or if they do, they pay a nominal amount. Investors are going to gravitate to where they're going to get their best bang for the buck. The custodians and administrators are going to obviously get what the investors gravitate towards. Some of them have multiple fee structures, too. Some offer multiples. We've developed all these resources because the industry is so complicated and convoluted. The discount broker model, everybody’s more or less the same. I think Fidelity recently reduced their $9.99 trade to $5.00, and then their competitors naturally did the same thing, because they're natural competition. With these firms, you don’t tend to get that, because they're not all the same and you have very many different investors. They each have their own piece of the puzzle, but those are the big four that I look at when we're looking at firms. There are many questions we ask, but those are the probably the bigger categories that I would consider. Kelly Coughlin: Okay. What sort of feeling of fees would be for that provider? Can you give us any guidance on where that would come in? Certainly, it's more than $100 a year, which is the $100 to $125 typical IRA fee. Kirk Chisholm: It depends. I wouldn't make a broad statement with the fees, because the $100 is, I think, probably—I don't know anybody would charge $100 for this service. That's really low. Many of them charge $50, $25 to $100 to even set up the account. In the traditional side, that's what they would charge to bookkeep it, but in this side, it would probably be more expensive. By and large, if you're getting a Cadillac type of service, you're going to have to pay for it. I'll tell you a funny story. I was talking to a guy recently. He was an attorney. He was telling me about one of his clients. I'll give you some interesting anecdotal story here. There's a side story. The GAO published a report a few years back, I think it was 2014, about IRAs above a certain amount. I believe they went into different categories. This is something you could probably easily find, but I believe there were 300 or 400 individuals who have over $25 million in their IRA, which to me is fascinating, but I've been in this business a while, and it's a rarity to see somebody with $1 million IRA. I've seen a lot of $700,000-$800,000, but when you get into the millions, you have to be doing a lot of things right, because even if you're maxing out your 401k every year and doing what you should, it's still hard to find people who have that kind of depth in their IRA. To find somebody who has $25-plus is just, it's a really small number. I think there are 314 taxpayers who have an IRA over $25 million. Now, one of them you might know, is our former president candidate Mitt Romney, who had an IRA of, I believe, was $102 million. It was disclosed when he was running, but if you look at the numbers in the GAO study, out of that 314 people, the average of those 314 people is $250 million. If the average is $250 million, it makes you wonder with the biggest one looks like. Now, I've heard a rumor that it's above $1 billion, but certainly, nobody’s going to talk about that in detail. Somebody like that wants some very specific things. They have a lot of money at stake. They want the Cadillac. They want all that. If they're not getting it from the companies that exist, some of them might just create their own. There comes a point in time where, if it's not there, if you have enough money, why not just create it yourself? Create the solution, because even with all these companies, they do provide some great services, but like I said, there's no one singular best of breed. There's some great companies, but there's not one solution for everybody is what I mean. If you have that kind of a setup, then there's definitely some room for additional competitors in the market. We've gotten calls from people that wanted to start their own. They've seen our research and they said, hey, we want to see what we can find out about this market. We'd love to start a new company. Technology, as we've seen with gen tech in a traditional space, is a big part of this. The more that you can scale this part of this business, the more profitable it will be and the better services they'll be able to provide. I think that's the next natural step in this industry, is better technology to provide better services in a cheaper way. From a fees perspective, I think if I was to start one, I would offer multiple fee structures to provide something for everybody so that you can have the transactional as well as assets under management kind of fee structure. I think would be the most flexible. You would appeal to the most investors. Whether that works with your infrastructure is a different question, but that would certainly appeal to everybody. Kelly Coughlin: Then, in terms of the features and benefits, certainly specialization is an advantage, but it seems to me that if you were starting one, you would want to be able to specialize in either all of the assets that you could foresee, or those assets representing the top 50, 60, 75%, or some breakdown of where are people putting their money? You need to be able to specialize in those asset classes. Is that a fair statement, do you think? Kirk Chisholm: Yeah. It comes to two different parts. You want to offer as much as you can to appeal to the most people, but you don’t want to dilute yourself, either, because obviously, you have people with different expertise and you just have to hire more of them. It doesn't always make sense. When you talk about features and benefits, I call this specialization. I mentioned one firm specializes in church bonds. I think that's great. There is a market out there. Nobody really wants to address it. They did. They specialized in it. I think that's great. Another asset class that people don’t really want to touch is international real estate. There's no reason not to, but people just, the firms just don’t want to deal with the international standards and liabilities and all that. One interesting asset, it's really interesting talking to different firms about this, because nobody really has a firm opinion on it. Even we've had to research it, because it's not something we'd seen before, but domain names. Investing in domain names inside of an IRA. Many firms look at it as intellectual property. Some firms say, where is the domain being registered? They want to see, what's our recourse? There's so many different levels to these assets. You can't just say, it's an asset. We'll invest. You have to look many levels deep into what are the repercussions if this happens or this happens? I'll give these firms credit. They've put a lot of thought into it. I'd agree with their decision, but they've put a lot of thought into why they will or will not hold these assets. It makes sense, and if I was them, I would probably have a similar conversation. We have a different view of some assets than they do, but they certainly have full rights to say no for whatever reason that they decide. I think there are a lot of assets on the edge. I think cryptocurrency is another one that people are unsure about for many reasons. I think a lot of people look at it as a good investment/speculation, I would say. A lot of people are interested, but it's an unknown, so many of these firms won't hold it, because they're not comfortable with it. In another way, they might think it's too risky. Maybe many of it's clients lose money or they get blown up because they don’t know what they're doing. For them, they're just saying it's not worth it for us to custody this asset and have clients lose all their money. It's just for liability reasons or whatever, they just don’t want to do this. There are many reasons that they make these decisions. There are some firms that’ll custody almost anything. There are other firms which actually specialize in only a handful of areas. I think you can look at it from different ways. Our economy has come a long way to the nature of specialization, where many companies used to be generalists, and now, people want specialists. They want somebody who’s an expert in this or an expert in that. There's a market for that, and I think if one firm offers great service to all of these assets, that's fantastic, but I think it's harder to do and you'd have to have the scale to be able to do it well. Kelly Coughlin: Kirk, that's all I have right now. That's a very interesting and fascinating topic on the sausage related to IRAs and custody. I think you added some nice sizzle to it, and I appreciate that. I hope our listeners do, too. That's it for part one, but I want to give you an opportunity to tell the listeners how they can get in touch with you if they're so inclined to look for some help from an expert in this industry. Kirk Chisholm: Yeah. Thanks a lot, Kelly. We're pretty easy to find. You can go to our website, which is innovativewealth.com, and we have a lot of free resources there that we write up just to educate people about self-directed IRAs and alternative assets. Certainly, you can contact us through that as well. Kelly Coughlin: Okay, Kirk thank you very much for your time. I hope you're well. Kirk Chisholm: Thanks a lot, Kelly. We want to thank you for listening to the syndicated audio program, BankBosun.com. The audio content is produced and syndicated by Seth Greene, Market Domination, with the help of Kevin Boyle. Video content is produced by the Guildmaster Studio, Keenan, Bobson Boyle. Voice introduction is me, Karim Kronfli. The program is hosted by Kelly Coughlin. If you like this program, please tell us.  If you don’t please tell us how we can improve it. And now some disclaimers, Kelly is licensed with the Minnesota Board of Accountancy as a certified public accountant. The views expressed here are solely those of Kelly Coughlin and his guest in their private capacity and do not in any way represents the views of any other agent, principal, employee, vendor or supplier.

The rent is too damn high! But, what happens when the mortgage is too high, also? Among many other quarter-to-midlife items on the must have crisis checklist, the "you need to buy a home" struggle is real. Whether we like it or not, many of us still see homeownership as the final ornament on top of the Christmas tree of life that officially marks when we've graduated to adulthood and the "American Dream." But, have you ever thought about who sold us this dream? Is homeownership an expense or an investment? What happens when you don't own, you prefer to rent, or you have no interest in ever owning a home? The answers are complicated. Luckily, we have Kirk Chisholm on this week's show to help us navigate the complex data and analyze the true pros/cons of renting versus owning. Kirk is a Principal and Wealth Manager at Innovative Advisory Group, an independent RIA (Registered Investment Advisor) located in Lexington, MA. He has been providing financial advice to individuals and families since 1999. "If you rent a home, it is an expense. When you buy a home, it is an expense. If you buy a home and rent it out to a third party, it becomes an investment." In addition, this week we discuss: What information you should review before deciding to rent or buy. The true cost of homeownership and why a 20% downpayment on a home will not return the best investment on your funds compared to other investment options. Why what you don't know about renting versus buying can cost you thousands of dollars. A listener voicemail on recommendations for easy-to-use index funds for young and first-time investors.

#108: Should your rent or own your primary residence? Consider feelings, equity buildup, control, leverage, personal cash flow, mobility, inflation, taxes, liquidity, opportunity cost, sunk costs, and much more. Innovative Advisory Group’s Kirk Chisholm joins Keith for the chat. Keith tells you how much his home is worth. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.   Listen to this week’s show and learn:   02:55  Your home is not an asset.   08:51  Why throw away money on rent?   12:15  Rental “stigma.”   16:10  Liquidity.   17:50  Sunk costs like furniture, maintenance, amenity obsolescence.   20:14  Inflation, leverage, appreciation.   23:57  Three methods to help you determine to rent or buy.   27:51  Wider selection of homes to buy than rent.   30:41  Rent-To-Value Ratio.   34:08  Today’s low homeownership rates.     35:19  “Touchy feely things.”   39:31  Rent vs. Buy Calculator.   40:30  Keith’s home valuation and whether he rents or buys.   42:21  Be the second owner of a home.     Resources Mentioned:   InnovativeWealth.com/GRE   Kirk Chisholm’s Rent vs. Buy article   CorporateDirect.com   NoradaRealEstate.com   RidgeLendingGroup.com   GetRichEducation.com

How to boost returns by deferring taxes. Taxes take a big chunk out of domain name investment returns. What if there was a way to defer taxes, and reinvest that money in more domains? It’s possible, and today’s guest Kirk Chisholm of Innovative Advisory Group explains how. Chisholm previously answered questions on a Q&A with […] Post link: Tax-advantaged Domain Investing – DNW Podcast #67 © DomainNameWire.com 2020. This is copyrighted content. Domain Name Wire full-text RSS feeds are made available for personal use only, and may not be published on any site without permission. If you see this message on a website, contact editor (at) domainnamewire.com. Latest domain news at DNW.com: Domain Name Wire.

With the stock market somewhat volatile, many people are looking for ways to make more money outside "traditional" means. Alternative investments like real estate, tax liens, private mortgages and others might be the way to go. You might even be able to enjoy a tax advantage with a self-directed IRA. But are these investments right for you? Kirk Chisholm of Innovative Advisory Group joins us to talk about some of the alternative investments his clients choose, and what you need to know before you risk your hard-earned cash on the next big trend. https://moneymastermindshow.com/episode64-alternative-investments/ Important issues discussed in this episode: What are some alternative investments that are easy to understand? Practical ways to include alternative investments in your portfolio. What is a self-directed IRA, and what can you keep in it? Risks to be aware of before you invest in non-traditional assets. Panelists In This Episode: Special Guest: Kirk Chisholm | Innovative Advisory Group Glen Craig | Free From Broke Kyle Prevost | Young and Thrifty Miranda Marquit | Planting Money Seeds Peter Anderson | Bible Money Matters Tom Drake | MapleMoney

I've been looking for an expert on self-directed IRAs to bring on the show and I was thrilled to meet Kirk Chisholm at FinCon last year. Kirk is an expert in both the self-directed IRA niche and the alternative investments world. His firm, Innovative Advisory Group, helps serve clients in this space with advice. Self-directed IRAs can be a powerful tool in your arsenal. Just think of the magic of Mitt Romney's $100,000,000 IRA! When you combine an IRA with alternative investments, you might really be able to work some magic. What is an Alternative Investment? Well, right from Kirk's site: "The term “alternative investment” has become a trendy term in the financial services industry to describe new approaches to investing. It is frequently used to describe different asset classes or investment types such as: hedge funds, structured products, managed futures, or even Timber REITs. If you describe traditional assets as stocks, bonds and mutual funds, then by contrast everything else is an alternative investment. "We look at the term “alternative investments” differently. We take a step beyond the current industry definition and use it to describe assets or investments such as physical real estate, tax liens, physical gold and silver, structured settlements, horses, livestock, farmland, timberland, and more. We would characterize alternative investments as an asset or investment which is: not publicly traded, has a low-correlate to most traditional investments, is too small for institutional investors, is illiquid, is not easily able to be securitized, or is not reliant on the publicly traded markets to be profitable. "The characterization of what is a suitable asset for diversification purposes is a fluid concept. Some asset classes, which have traditionally provided a low or negative correlation to other assets, have become much more highly correlated since early 2000. Asset classes such as managed futures, timberland, farmland, and certain types of hedge funds in the past did provide a low correlation to the traditional markets, however, due to a higher level of institutional interest in these areas, as well as changing market conditions, they have become more highly correlated to traditional markets. This minimizes the effects of diversification as a risk management tool." This interview is super fun and super deep. Enjoy! Joshua Links: Kirk's firm: Innovative Wealth GAO report on multi-million dollar IRAs