Pod of Wealth

Wealth Training: How to Invest

In this conversation, Erik and Chad discuss the critical aspects of investing, focusing on the impact of fees and taxes on long-term wealth accumulation. They emphasize the importance of starting early, paying yourself first, and utilizing tax-advantaged accounts like 401ks and IRAs. The discussion also covers the significance of low-cost index funds and the art of building a balanced portfolio based on age. Finally, they highlight the importance of tax efficiency in investing and how even small differences in costs can lead to substantial differences in savings over time.
 
 
Chapters:
00:00 Introduction to Wealth Training01:26 Four Principles of Investing03:06 Building a Simple Investment Portfolio05:00 The Importance of Low Costs in Investing06:17 Understanding Compounding and Its Impact07:00 Understanding the Impact of Fees and Taxes on Investments09:53 Maximizing Retirement Contributions: 401k, IRA, and Roth IRA12:19 The Importance of Tax Efficiency in Investment Choices
Takeaways
Taxes can significantly impact your investment returns.Starting early with investments is crucial for compounding growth.Paying yourself first is a fundamental principle of investing.Utilizing a 401k can provide tax advantages and employer matching.Low-cost index funds are a smart investment choice.Building a portfolio should consider your age and risk tolerance.Tax efficiency is essential to maximize returns.Mutual funds can be tax inefficient compared to index funds.A 1% difference in fees can lead to a substantial loss in savings over time.Understanding the compounding effect is vital for long-term wealth. 
 

POW: YOLOing, Financial Nihilism, GLP-1s, Bitcoin, Sound Investing Strategy

In this episode, Erik and Chad explore the concept of YOLOing in finance, discussing its implications on investment behavior and decision-making. They delve into various topics including the impact of new drugs on addiction, the growing acceptance of Bitcoin among institutions, the role of AI in technology, trends in the IPO market, and the dynamics of private versus public market valuations. The conversation also touches on the psychology behind YOLOing, emphasizing the importance of financial discipline and planning for long-term success.
 
Chapters:
00:00 The YOLO Mindset: Embracing Risk in Life and Finance02:50 The Anti-YOLO Drug: Exploring GLP-1 and Its Impact05:38 Bitcoin's Growing Institutional Adoption: A New Era?08:36 AI Revolution: Broadcom's Surge and the Future of Technology11:27 The IPO Market: Signs of Recovery and Future Prospects14:15 Victory Lap: Quantum Stocks and YOLO Investing17:18 Economic Indicators: Strength in the Services Sector19:59 MicroStrategy and Bitcoin: A Controversial Investment22:46 Inflation and AI: Competing Forces in the Economy25:38 Private Markets vs. Public Markets: A Shift in Capital28:15 The Hedonic Treadmill: Why We YOLO in Investing32:39 The Housing Market Dilemma37:51 Choosing Your Hard: Saving vs. YOLOing42:37 The Power of Compound Interest48:08 The Risks of Zero Day Options51:50 The Mirage of Easy Success57:55 YOLOing in Life Experiences
Takeaways:
YOLOing reflects a desire for quick financial gains.New drugs may help combat addiction and change behaviors.Bitcoin is increasingly being recognized as a legitimate asset.AI technology is rapidly evolving and impacting various industries.The IPO market is showing signs of recovery after a downturn.Quantum technology investments are gaining traction.Economic indicators suggest a strong services sector.MicroStrategy's approach to Bitcoin raises questions about investment strategies.Inflation and economic policies are interconnected and complex.Choosing experiences over financial risks can lead to a fulfilling life.
 

POW: Market Structure, Portfolio Construction, Frozen IPO Markets

In this conversation, Erik and Chad discuss the current state of equity markets, focusing on the impact of market structure, the frozen state of IPOs, and the importance of portfolio construction. They explore the role of buybacks and retirement plans in driving market dynamics, as well as the potential of alternative asset classes like gold and Bitcoin. The discussion also touches on the future of U.S. markets and the influence of passive investing on market behavior.
 
Chapters:
00:00 Market Structure and Its Impact on Equity Markets06:07 The Role of Buybacks in Market Dynamics14:44 Future Market Predictions and Trends16:46 Introduction to Portfolio Construction23:15 Rebalancing Strategies29:10 The Case for International Investments31:14 The Current State of IPO Markets34:13 Factors Influencing Private Companies' Decisions37:12 The Role of SPACs and Market Sentiment40:07 Future Outlook for IPOs and Market Dynamics
 
Takeaways:
Market structure plays a crucial role in driving equity markets higher.The IPO market has been weak, with companies staying private longer due to ample private capital.Portfolio construction is an art and science, requiring careful asset allocation.Retirement plans and buybacks contribute significantly to price-insensitive buying in the market.Investors often panic sell during drawdowns, which can be counterproductive.Alternative assets like gold and Bitcoin may provide interesting diversification opportunities.The dominance of U.S. markets is supported by strong corporate earnings and passive investment flows.Passive investing can lead to price insensitivity, affecting market valuations.Rebalancing portfolios is essential, especially during market fluctuations.The future of U.S. markets may see continued growth, driven by structural factors.
 
 

Pod of Wealth - Meet Your Co-Hosts

Pod of Wealth is your go-to resource for cutting through the noise of the financial world. Hosted by seasoned experts in wealth-building and personal finance, each episode delivers pragmatic advice, expert insights, and actionable strategies to help you navigate the ever-evolving landscape of money, investing, and entrepreneurship. Whether you’re looking to grow your portfolio, scale your business, or simply understand the complex financial systems that impact your wealth, Pod of Wealth gives you the tools to make smarter decisions and achieve financial success. Tune in for sharp commentary, candid discussions, and an unflinching look at the forces shaping today’s economy—because wealth isn’t just about what you have, it’s about how you think.
 
Chad Fargason , Ph.D.
Chad was most recently a senior portfolio manager of a mid cap value strategy for over 11 years at Vaughan Nelson, where he helped grow firm AUM from $8B to $18B. Prior to Vaughan Nelson, Chad worked at KKR Capstone, the internal operations group that oversees KKR's portfolio companies. He improved operations at numerous companies, improving EBITDA by hundreds of millions of dollars over the course of a decade. Prior to that he was an SVP at El Paso Corporation, and he began his career at the Boston Consulting Group.
Chad is currently the Chairman of the Board of Carriage Services Inc, and he holds a Ph.D. in Mathematics from Duke University, and BA in Mathematics from Rice University.
 
Erik Cooper
Erik is the Founder and Principal of ELC Advisors, LLC, an independent, fee-only financial advisory firm specializing in efficient, low-cost wealth management for individuals, high-net-worth individuals, trusts, estates, and charitable organizations.
With over 12 years of experience at ELC Advisors, Erik leads a disciplined, research-driven approach to investing, focusing on risk-appropriate, tax-efficient, and returns-optimized portfolios using broadly diversified index funds. The firm’s investment strategy avoids speculative practices and instead emphasizes consistent exposure to global market trends.
Prior to founding ELC Advisors, Erik worked in institutional sales at Tudor Pickering & Holt and in private wealth management at Goldman Sachs, where he gained deep experience in delivering tailored financial strategies and managing relationships with high-net-worth clients.
Erik has a BA in Economics from Rice University.
 

Wealth Training: Dividend Stocks

In this episode, Erik and Chad delve into the intricacies of dividend paying stocks, discussing their role in investment portfolios, the challenges of selecting individual stocks, and the potential benefits of dividend ETFs. They also explore recession signals, particularly the Walmart recession indicator, and provide insights on whether to continue investing during uncertain economic times. The conversation emphasizes the importance of staying invested for long-term growth and the psychological challenges investors face during market fluctuations.
Takeaways:
Dividend paying stocks can be a part of a conservative investment strategy.Selecting individual dividend stocks can be challenging and risky.The Dogs of the Dow strategy may not be reliable for long-term gains.Dividend stocks have lagged behind the S&P 500 in recent years.Investors should consider tax implications when investing in dividend stocks.A diversified dividend ETF can mitigate single stock risk.The Walmart recession signal suggests a potential economic downturn.Staying invested is crucial if you don't need immediate access to funds.Timing the market is difficult and often leads to missed opportunities.Dollar cost averaging can be beneficial during market pullbacks.
 
 
Chapters
00:00 Wealth Training: Dividend Investing06:16 Investment Strategies in a Potential Recession

POW - Quantum Computing, AI innovations, Digital Labor, Dividend Stocks

In this episode, Erik and Chad discuss significant advancements in quantum computing, the ongoing healthcare crisis in the US, and the implications of recent merger blockages in the grocery sector. They explore market trends, including the valuation of SpaceX and the impact of US-China trade relations. The conversation also delves into the future of RoboTaxis, investment strategies in quantum computing and Bitcoin mining, and the rise of AI innovations and digital labor. Finally, they provide insights on dividend stocks and strategies for investing during potential recessions.
Chapters:
00:00 Quantum Computing Breakthroughs and Implications05:47 Regulatory Challenges in Mergers and Big Tech11:22 US-China Trade Relations and Strategic Posturing16:46 Investing in Quantum Computing and Energy Solutions23:44 AI Agents: The Future of Digital Assistance27:56 Privacy Concerns in AI35:37 Investment Strategies in a Potential Recession
Takeaways:
Google's quantum computing chip represents a significant scientific advancement.The healthcare system in the US is perceived as broken by many.Merger blockages in the grocery sector may hinder efficiency and competition.Current market conditions reflect a Goldilocks economy, but caution is advised.SpaceX's valuation highlights the growing importance of private space ventures.US-China trade tensions are escalating, impacting critical industries.The RoboTaxi market faces challenges as major players withdraw.Investing in quantum computing is seen as a long-term play.Bitcoin mining companies have potential due to their energy resources.AI agents are emerging as a new form of digital labor, raising privacy concerns.
 

Wealth Training: Approaching Bitcoin & Crypto

In this conversation, Erik and Chad delve into the world of cryptocurrency, focusing on Bitcoin's rise and the broader implications of investing in digital currencies. They discuss the potential future of Bitcoin, the various types of cryptocurrencies, and the importance of understanding the underlying value of these assets. The conversation also touches on investment strategies, the role of smart contracts, and emerging technologies like the Helium Network.
Chapters:
00:00 The Bitcoin Phenomenon03:00 Understanding Crypto Assets05:47 The Value of Smart Contracts08:36 Evaluating Different Cryptocurrencies11:29 Investing Strategies in Crypto
Takeaways:
Bitcoin's value has skyrocketed, making early adopters wealthy.The fear of missing out (FOMO) drives many to invest in crypto.Investing in crypto should be a small percentage of your portfolio.Smart contracts have potential but come with challenges.The belief in the value of crypto is similar to that of gold.Emerging cryptocurrencies may have real business applications.Diversifying into different cryptocurrencies can be beneficial.Understanding the technology behind crypto is crucial for investors.The Helium Network represents a disruptive business model.Investing in crypto requires careful consideration and risk management.
 

Wealth Training: Do I Budget or Live?

In this conversation, Erik and Chad discuss the balancing act of budgeting and living, emphasizing the importance of paying yourself first, making trade-offs in spending, and understanding the power of compounding in achieving financial independence. They explore how small daily expenses can add up over time and the significance of creating a disciplined financial habit early in life to enjoy a more secure future.
 
Chapters:
00:00 The Importance of Budgeting and Paying Yourself First02:55 Understanding Savings Percentages and Financial Independence05:53 Making Trade-offs: Enjoying Life vs. Saving for the Future08:49 The Power of Compounding and Long-term Financial Planning
Takeaways
Pay yourself first to ensure savings.Aim for 15-20% of income for savings.Don't spend more than you earn.Consider trade-offs in daily spending.Small expenses can significantly impact retirement savings.Compounding can lead to substantial wealth over time.Create experiences while maintaining financial discipline.Choose to save now for a better future.Financial independence is achievable with discipline.Budgeting doesn't mean denying yourself completely.
 

Wealth Training: Achieving Financial Independence

In this episode, Chad and Erik discuss the essential steps to achieving financial independence. They emphasize the importance of setting financial goals, understanding what financial independence truly means, and the necessity of building a strong financial foundation through emergency funds and investments. The conversation highlights the significance of starting early with investments, utilizing tax-advantaged accounts, and maintaining low-cost investment strategies to ensure long-term financial success.
 
Chapters
00:00 The Pursuit of Financial Independence02:47 Understanding Financial Independence06:01 Building a Strong Financial Foundation09:08 Investing for the Future11:59 Strategies for Achieving Financial Goals
 
Takeaways:
You must consciously decide to pursue financial independence.Financial independence allows you to live life on your own terms.An emergency fund is crucial for financial security.Investing early maximizes the benefits of compounding.The 4% rule is a guideline for retirement withdrawals.Low-cost index funds are essential for effective investing.Systematic investing is key to building wealth over time.Utilize tax-advantaged accounts like 401ks and IRAs.Financial independence is not just about retiring early.Having a supportive family can be a significant advantage. 
 
 

U.S. Debt & GDP: Growth, Inflation, Dollar Strength

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Summary
In this conversation, Chad Fargason and Erik Cooper delve into the complexities of government debt and spending, exploring its implications for the economy, inflation, and the strength of the US dollar. They discuss Modern Monetary Theory (MMT) and its relevance in today's economic landscape, the impact of government spending on domestic and global markets, and the potential future of US economic policy. The discussion emphasizes the balance between maintaining a strong dollar, managing inflation, and the role of government in stimulating economic growth.
 
Chapters
00:00 Understanding Government Debt and Spending13:00 Modern Monetary Theory: A New Perspective20:50 The Implications of Debt and Currency Printing23:11 Economic Impact of Spending26:15 The Dollar's Strength and Global Liquidity28:57 Inflation and Interest Rates34:43 Asset Inflation and Market Dynamics40:44 Investment Strategies and Market Outlook
Takeaways:
Government spending is exceeding revenue, leading to rising debt.The US dollar's strength is tied to its status as a global reserve currency.Modern Monetary Theory suggests that debt isn't as concerning as traditionally thought.Inflation is a likely outcome of continued government spending.The relationship between debt and GDP is complex and not necessarily problematic.Asset inflation may occur even if consumer goods inflation remains low.Political factors influence the Federal Reserve's decisions on interest rates.The US can manage its debt without defaulting due to its ability to print money.Global liquidity is being funneled into US assets, supporting the economy.Investors should consider both cash reserves and full deployment in the current market.