Wealth Actually

Frazer Rice
  • 4.8 (26)
  • Entrepreneurship
  • Updated Biweekly

Covering the issues that affect business, entrepreneurship, wealth, trusteeship and culture.

  1. 4d ago

    Founder Succession Roadblocks

    When the Title Changes but the Authority Doesn’t: Family Business Succession with Paul Edelman Most family business succession plans fail not because the legal structure is wrong, but because authority never actually moves. In this episode of Wealth Actually, Frazer Rice talks with Paul Edelman, PhD of Edelman & Associates about how to tell the difference between a real handoff and a cosmetic one. Edelman unbundles succession into six separate questions, explains the three behavioral tells that reveal who is really in charge, draws a hard line between a legitimate safeguard and an open-ended veto, and makes the case that agreement from a family is not the same thing as ownership of a decision. https://youtu.be/p2KCsftvM74 Key Takeaways Succession is not one decision — it is at least six. Who gets the economic benefit of ownership, who votes the shares, who appoints and removes directors, who runs operations, who receives what information, and who retains informal influence after formal authority ends. Watch behavior, not titles. Compensation changes and org charts are easy to read and easy to fake. How decisions actually get made — and whether they get reversed — is the real signal. Three tells that authority hasn’t moved: the next management layer still routes real decisions to the founder; the successor has never had a disputed call stand; and in a genuine crisis, the founder is the one who walks into the room. Speed is not the test. A five-year transition can be disciplined development; a six-month transition can be denial with a deadline. The test is whether milestones and readiness criteria are observable and stable, or whether the goalposts keep moving. “Not ready” is not a concern — it is a placeholder. If a founder cannot restate it in specific, testable terms, the obstacle is emotional rather than substantive, and it needs a different path. Advisor impatience often masquerades as clarity. When you catch yourself thinking “why can’t they just do this,” ask whose timeline is actually being served — the family’s, or your need to close the file. A safeguard is bounded; a veto is not. Reserve specific extraordinary decisions with defined scope, thresholds, triggers, evidence, and duration. “The successor is in charge unless the founder feels uncomfortable” is an undefined operational veto. Agreement is not ownership. A family can be outvoted and formally agree while owning nothing. Ownership comes from having weighed the trade-offs and the implications of each option in the room. Timestamps [00:00] Cold open — why “he’s just not ready” is untestable [01:05] Welcome: founders at the sell-or-transfer crossroads [01:48] Unbundling succession into six separate questions [02:23] Running a diagnostic on where the founder actually is [03:00] Watch behavior, not titles — and what the CFO tells you [04:00] Decision reversals and the second-guessing test [05:00] The crisis test: who owns the emergency [05:36] Fast handoff vs. staged succession and prolonged ambiguity [06:10] Milestones that show it’s working — and goalposts that keep moving [08:00] Inside vs. outside successors and family dynamics [08:54] Competing heirs and the outside CEO as bridge or avoidance [09:47] Reading resistance: making “not ready” addressable [11:10] The advisory ecosystem’s frustration with stalled progress [12:16] Whose timeline is being served? [13:31] Push, pause, or reframe — the art and science of advising [15:00] When to change the forum, the decision rights, or bring in a facilitator [15:36] Safeguards vs. vetoes and the trap doors founders build [17:37] Board composition: independence vs. familiarity [20:00] Restructuring boards to create seats for new expertise [20:54] Income-dependent family members vs. growth-minded owners [21:34] Agreement is not ownership: dividends vs. reinvestment [23:31] Matching complexity to the outcomes you need [25:00] Communicating decisions to people who weren’t in the room [25:26] How to reach Paul Edelman [25:46] The Edelman–Shenkman trilogy for estate planning attorneys [29:19] Close Pull Quotes “If the CFO briefs the new successor CEO and then confirms things with Dad, then the org chart is not telling the real story.” — Paul Edelman “To have authority when things are going well is fine. But the person who owns the crisis is the one who’s really owning the leadership.” — Paul Edelman “A safeguard should be limited, explicit, and connected to some extraordinary risk. A veto is an ongoing ability to stop or reverse any old ordinary decision.” — Paul Edelman “Just because there’s an agreement in name doesn’t mean there’s ownership of the decision.” — Paul Edelman About the Guest Paul Edelman, PhD is a coach, facilitator, and mentor at Edelman & Associates, where he works with family enterprise and family office leaders on decisions that cannot be delegated. He holds a PhD in developmental psychology from Harvard University and a BS in physics from MIT, and serves as faculty at The UHNW Institute and the Bertarelli Institute for Family Entrepreneurship at Babson College. Contact Paul Edelman Email: paul@edelmancoaching.com Website: edelmancoaching.com (contact form on site) LinkedIn: linkedin.com/in/pauledelman The Edelman & Shenkman Trilogy Paul and Martin M. “Marty” Shenkman, CPA, MBA, JD, PFS, AEP (Distinguished), of Shenkman Tietz, have written a three-part series aimed at estate planning attorneys: Simplicity and its trade-offs — When Clients Ask for a Simple Estate Plan, WealthManagement.com / Trusts & Estates, July 8, 2026. The language of estate planning conversations — published in Steve Leimberg’s LISI Estate Planning Newsletter (subscriber archive). Beneficiary education — forthcoming October 2026, expected in Estate Planning. Paul’s running author archive: wealthmanagement.com/author/paul-edelman More from Paul Edelman Approval Is Not Ownership: Helping Family Office Investment Decisions Hold Under Pressure — Family Wealth Report, July 1, 2026 How Families Can Override Emotions to Make Better Judgments — Family Business Magazine, April 9, 2026 Lessons For Families And Their Advisors From A Hit TV Series — Family Wealth Report, February 24, 2026 Stronger Family Bonds and Better Strategic Decisions — FFI Practitioner, January 20, 2026 Frequently Asked Questions What are the six questions a family business succession decision should be broken into? Who receives the economic benefit of ownership; who votes the shares; who appoints and removes directors; who runs the company operationally; who receives what information; and who continues to hold influence after formal authority ends. Bundling these into a single “handoff” decision is what creates ambiguity. How can you tell whether authority has really transferred to a successor? Watch three behaviors. First, where the next management layer goes for real decisions — employees are excellent at reading where power actually lives. Second, whether the successor has ever made a call the founder disagreed with and had it stand. Third, the crisis test: when a covenant breaks or a key employee leaves, who walks into the room and who gets briefed afterward. Is a fast succession better than a gradual one? Speed itself is not the test. A five-year transition can represent disciplined development, and a six-month transition can be avoidance followed by an arbitrary deadline. What matters is whether responsibility moves against observable milestones, whether the successor learns from outcomes instead of being rescued, and whether readiness criteria stay fixed rather than shifting each time the successor advances. What is the difference between a safeguard and a veto? A safeguard is limited, explicit, and tied to extraordinary risk — selling the company, debt above a threshold, issuing new equity, changing core strategy, or related-party transactions — with defined scope, thresholds, process, duration, trigger, evidence, and who decides. A veto is an ongoing ability to stop or reverse ordinary decisions. If the founder can intervene whenever they feel uncomfortable, that is an undefined operational veto. How should advisors handle their own frustration with a stalled family? Notice that impatience often feels like clarity. When you think “I see exactly what they need to do, why can’t they just do it,” that is often the moment to slow down and ask whose timeline is being served — whether the ambiguity is genuinely damaging the company, or whether the recommendation mainly closes the case and relieves the advisor’s discomfort with uncertainty. What makes an independent director genuinely independent in a family company? The ability to exercise business judgment and fiduciary duty free from undue family influence or loyalty to a particular branch. A director who is the founder’s golfing buddy or tied to one family faction will struggle to deliver the value independence is supposed to provide. Why isn’t agreement good enough? Because agreement in name is not ownership. A family branch can be outvoted, formally accept the outcome, and still feel no responsibility for it. Ownership comes from working through the trade-offs — what each option makes better and worse — so participants can say they helped weigh the considerations even if the result was not their first choice. Full Transcript [00:00] Paul Edelman: The resistance often takes the form of some sort of concern that is stated like, for example, the most general concern that people will say is, well, he or she, the likely successor, is just not ready. But that phrase “not ready” is at a very high level of generality. It’s not specific enough to be testable or to be capable of being satisfied. So the challenge is to work with the founder to help them expres

  2. Jul 28

    Choosing a Trustee: Why Naming Your Kid May Be a Mistake — Marguerite Lorenz

    Choosing a Trustee: Why Naming Your Kid May Be a Mistake — Marguerite Lorenz Short answer: Naming your child as trustee, executor, or agent under your power of attorney is the default choice for most American families — and it is frequently the wrong one. In this episode of Wealth Actually, host Frazer Rice talks with California Licensed Professional Fiduciary and Master Certified Independent Trustee Marguerite Lorenz about why roughly two-thirds of American adults still have no estate plan, why the job of a trustee is far more intimate and technical than families expect, and how to decide between a family trustee, a bank or trust company, and an independent professional trustee. https://youtu.be/56bzuORe8YI Episode Overview: Who Will Actually Run Your Plan? Most estate planning conversations stop at the documents. Marguerite Lorenz argues the documents are the easy part. The hard part is staffing — deciding who steps in when you can no longer make new decisions, and whether that person can absorb the technical, financial, and emotional weight of the job. Lorenz has served as trustee, executor, agent under power of attorney for finance, and agent for health care for hundreds of families since 2003. She is the author of three books — Luck or Control? The Life-Improving Power of Estate Planning, How to Be a Successful 90-Year-Old, and the newly updated Ethics for Trustees 2.0 — and she is Vice-Chair of the Independent Trustee Alliance. Her framing line, and the one that should stick with every listener: “If you don’t get your estate plan done, you’re suing your family. You’re making them go to court. And who would want to make anyone else go to court?” — Marguerite Lorenz This is the second time Marguerite has joined the show. Her first appearance covered the mechanics of individual trusteeship: EP.75 — Individual Trusteeship with Marguerite Lorenz. Key Takeaways •Only about a third of American adults have any written estate plan — and Lorenz argues half of those plans would not actually function when needed. •Professionals are barely better than the public. When Lorenz polls rooms of attorneys, CPAs, and financial advisors, roughly one-third raise their hands for a complete, up-to-date, ready-to-go plan. •The trustee role is intimate, not administrative. A trustee sees your paperwork, your bills, your medications, and your bedroom. “Who is going to be the first person in your bedroom when you are no longer able to make new decisions?” •Incapacity, not death, is the long tail. Many people live for five or six years unable to make new decisions. The trustee’s job often runs during your lifetime, not just after it. •A professional trustee can be temporary. Lorenz recounts stepping in for a client during cancer treatment, providing a full accounting, and stepping back down when he recovered — then serving again after his death. Would your child step back down? •Estate planning is about preferences, not predictions. “Our power in estate planning is not prediction, it’s setting our preferences” — and preferences can only be set while you are competent. •Quality of life belongs in the plan. Not just tax, legal, and financial terms — but how you want to live, where you want to live, and what small things matter (for Lorenz, an international selection of dark chocolate). •Digital assets are now a core trustee problem. Phones, social accounts, and daily transactions all require someone with access and authority. •A will does nothing while you are alive. “The will doesn’t operate at all if you go to the hospital and you haven’t granted authority to anyone.” •Cost is usually overestimated. Both an estate plan and an independent professional trustee typically cost far less than probate court. •Revisit every five years. Calendar a five-year check-in with your attorney to review law changes, marriages, divorces, births, and deaths. Chapters and Timestamps •[00:00] Cold open: “If you don’t get your estate plan done, you’re suing your family.” •[00:32] Welcome back — introducing Marguerite Lorenz, California trustee and author •[01:14] Luck or Control? — why fear keeps families from finishing an estate plan •[02:22] What a full-time trustee actually sees: trustee, executor, agent for finance, agent for health care •[03:49] Why families default to naming a child — and where that breaks down •[05:00] The skill set nobody screens for: negotiation, calm, empathy, and grief •[05:40] Case study: serving as temporary trustee through a client’s cancer treatment — and stepping back down •[07:51] Why even attorneys need their own attorney: nobody is objective about their own circumstances •[09:09] The five-year estate plan check-in as a life milestone •[09:39] How to Be a Successful 90-Year-Old — living well to the very end •[10:20] The “black box” problem: privacy, dignity, and care in your own home •[11:54] Preferences over predictions — planning for your future vulnerable self •[13:40] Rewriting an advance health care directive after hundreds of hospital bedsides •[16:13] The statistics: only a third of adults — and only a third of professionals — are actually ready •[17:47] Frazer’s challenge to advisors: you can’t advise well if you aren’t practicing what you preach •[18:22] The first question in Luck or Control?: “Hey professional, do you have your estate plan done?” •[19:21] Ethics for Trustees 2.0 — what’s new in the updated audio and PDF edition •[20:27] Family trustee vs. bank trustee vs. independent professional trustee •[21:52] The looming crisis: the great wealth transfer, incapacity, and digital assets •[24:54] Documenting the “why” behind hard trustee decisions •[25:23] Probate courts overrun, bioethics committees, and next-of-kin defaults •[26:54] Where to find the books, the podcast, and the Independent Trustee Alliance directory About the Guest: Marguerite Lorenz, MCIT, CLPF Marguerite Lorenz is a California Licensed Professional Fiduciary (CLPF #319) and a Master Certified Independent Trustee (MCIT). She has served as Trustee, Executor, Agent for Finance, and Agent for Health Care for more than 200 families since 2003 as managing partner of Lorenz Private Trustees. Marguerite is Vice-Chair of the Board of the Independent Trustee Alliance, past Chair of the California Professional Fiduciaries Bureau Advisory Committee, and host of the Plan For This podcast. She is the author of Luck or Control? The Life-Improving Power of Estate Planning, How to Be a Successful 90-Year-Old, and Ethics for Trustees 2.0. About the Host: Frazer Rice Frazer Rice is the author of Wealth, Actually: Intelligent Decision-Making for the 1% and host of the Wealth Actually podcast, where he interviews experts, entrepreneurs, and commentators on preserving assets and enjoying wealth. Resources and Links Mentioned •PlanForThis.com — Marguerite’s books, the Plan For This podcast, and a free First Steps toolkit. Ethics for Trustees 2.0 is now exclusive to this site (audio + PDF bundled with purchase). •TrusteeAlliance.com — the Independent Trustee Alliance directory for locating certified independent trustees by state. •Marguerite Lorenz on LinkedIn •California Professional Fiduciaries Bureau — state licensing for professional fiduciaries •Related episode: EP.75 — Individual Trusteeship with Marguerite Lorenz •Related episode: What If You Are Named in a Will or Trust? Frequently Asked Questions Should I name my child as trustee? Not automatically. A child understands the family but may lack the technical skill to handle tax, legal, financial, and medical decisions — and may be grieving or in conflict with siblings at the exact moment judgment is required. Marguerite Lorenz notes that a trustee must be a good negotiator, stay calm under pressure, set aside personal feelings, and enforce rules the grantor set. She also raises a test most families never consider: if you recover, would your child voluntarily step back down and hand you a full accounting? What is the difference between a family trustee, a corporate trustee, and an independent trustee? A family trustee is a relative or friend serving in a personal capacity, usually unpaid and untrained. A corporate trustee is a bank or trust company with institutional infrastructure, minimum account sizes, and staff turnover. An independent professional trustee is a licensed or certified individual — like a California Licensed Professional Fiduciary — who serves full-time, carries a succession plan, and can often be engaged at a lower cost than families expect. The Independent Trustee Alliance maintains a national directory of independent trustees. What does a trustee actually do while I am still alive? A trustee acting during incapacity manages assets, accounts for every dollar, handles taxation, pays bills, coordinates care, and increasingly manages digital assets such as phone-based transactions and social media accounts. Lorenz emphasizes that many people live for five or six years unable to make new decisions, so the trustee’s lifetime role is often longer and more demanding than the post-death administration. How often should I update my estate plan? Roughly every five years, or sooner after a major life event such as marriage, divorce, birth, death, a liquidity event, or a change in tax law. Lorenz recommends putting a five-year reminder in your phone to call your attorney and ask what has changed in the law and in your life. What happens if I go to the hospital without an estate plan? The hospital and its bioethics committee will do the best they can and will look for next of kin to make decisions for you — potentially people with whom you have never discussed your personal

  3. Jul 7

    REDUCING THE NOISE OF AI INVESTING

    “Reducing the Noise of AI Investing”: In this Wealth Actually episode, Frazer Rice speaks with KEVIN SHEA, Senior Equity Analyst at BNY Wealth, about AI Investing and how investors should think about artificial intelligence as an investment theme rather than just a headline-driven trend. They discuss the difference between hype and durable fundamentals, how to segment AI opportunities across infrastructure, software, and end-user adoption, and why free cash flow still matters when evaluating companies tied to AI. https://open.spotify.com/episode/1NGM8j2KqdiUFWSLguBMEH?si=YmB4s0OVSqyy6U3Mpg7OaA https://youtu.be/Wnlub-HoiUo The conversation also explores circular financing risk, the role of management vision in fast-moving markets, which industries may be disrupted or strengthened by AI, and how large institutions are using AI internally to improve productivity, analysis, and client service. Chapters 00:00 – Intro and episode setup Frazer Rice introduces the episode, frames AI as a dominant investment theme, and welcomes Kevin Shea to help unpack AI Investing for the audience. 01:00 – Hype versus disciplined investing Kevin explains that disciplined investing is what allows investors to separate hype from durable opportunity, and argues that AI adoption, spending, and earnings revisions point to real underlying fundamentals. 03:00 – How to bucket AI investment themes The discussion turns to how investors can organize AI exposure, including beneficiaries versus disrupted companies, technology bottlenecks such as GPUs and networking, and industry adoption themes across sectors. 05:30 – Valuation, momentum, and free cash flow Kevin discusses why free cash flow per share growth remains one of the most important drivers of stock performance and why parts of the semiconductor ecosystem may deserve a valuation re-rating. 08:15 – Circular financing and risk in the AI ecosystem Fraser asks about the growing concern that AI companies are financing one another, and Kevin outlines both the bullish “escape velocity” case and the downside risk if business models do not become independently profitable fast enough. 11:45 – Infrastructure buildout and competitive uncertainty Using analogies like railroads and golf courses, the conversation highlights the risk that early builders may not be the ultimate winners, especially in a market with heavy spending and rapid leapfrogging among competitors. 13:00 – AI Investing: Public versus private market exposure They examine whether owning public companies such as Alphabet offers meaningful AI exposure, versus gaining more direct but harder-to-access exposure through private investment vehicles. 15:45 – What strong AI management teams look like Kevin emphasizes that in an environment with no clear historical playbook, vision, execution, and the ability to identify durable differentiation are critical traits in management teams. 19:15 – Adaptability and strategic pivots Fraser adds that thoughtful adaptation matters, and Kevin notes that sometimes acquisition activity can signal whether a company is innovating ahead of the curve or scrambling to catch up. 20:45 – Which industries are most exposed to disruption The conversation shifts to sectors under pressure, especially parts of software and IT services, while stressing that disruption does not necessarily mean extinction. 24:45 – Why law and accounting may evolve, not disappear Fraser offers a contrarian view that AI may make strong legal and accounting professionals more valuable, and Kevin compares that to earlier fears that Excel would eliminate accountants. 26:15 – How Kevin uses AI in practice Kevin describes how AI has made his team materially more productive, especially in data aggregation, scenario analysis, industry research, and portfolio risk work, while also helping BNY operationally across onboarding, security, and client communication. 29:10 – Where to find Kevin and closing remarks The episode closes with Kevin sharing where listeners can connect with him and Fraser noting how quickly the AI landscape continues to change. Links KEVIN SHEA on Linkedin RICK FERRI on BRING SIMPLICITY BACK TO INVESTING Transcript of AI INVESTING Frazer (00:01) Welcome aboard, Kevin. Kevin Shea (00:03) Yeah, thanks for having me. Appreciate it, Frazer. Frazer (00:06) We’re going to tackle two words that have basically taken over the investment world for the last six months: artificial intelligence. Before we do that, whether it’s AI or crypto or tulips or anything with a lot of hype or buzz around it, how do you think about delineating between investing based on hype and doing it within the confines of a disciplined approach? Kevin Shea (00:32) They really do go hand in hand. You need a disciplined approach in order to recognize whether it’s hype or not. The reality is that it’s pretty impressive, the adoption we’re seeing with AI: the amount of spend, the companies that are participating in and benefiting from AI. There was some concern with the stock movements that many of these companies have seen about whether the market was getting ahead of itself. Yet we have seen significant estimate increases throughout the year. If you take a look at some of the networking companies, their earnings expectations for 2027 are up almost 50% versus where they were just six months ago. The same is true with memory, GPUs, and CPUs. Fundamentally, we’re seeing a lot of these companies have expansion in revenue growth and earnings growth, which is quite supportive of a durable trend. What’s also very important is that adoption of AI is increasing. You can look at enterprise adoption: nearly two‑thirds of enterprises pay for an AI service. You can look at token usage — that’s how much companies are using AI — and that has been parabolic as well. Look at the revenue generation of these AI models. Right now, they are some of the largest, fastest‑growing companies that have ever existed. So we don’t really see this as a tulip scenario, or even comparable to the internet bubble. We find it very different. We think there are fundamental drivers to this trade, and we’re seeing that through earnings growth. Frazer (02:37) Cool. AI to me is a term that encompasses a lot of different things, and in some ways it’s become like real estate or water — it’s starting to touch a lot of different industries. It’s not just a thing unto itself, but something that’s becoming integrated into a lot of other types of things. How do you define and bucket the investment themes so that it’s digestible for the investor, and it’s not just, “I’m investing in Anthropic or Google,” but people can parse out where it fits within a portfolio? Kevin Shea (03:14) It’s a great question and probably one of the most important ones. Part of our overarching thesis is that for AI to fulfill its promise, it has to be in every geography, in every industry, at every company, and at almost every employee layer. We’re seeing that when you look at the business units that are adopting AI: customer service, product development, marketing — basically divisions that almost every single company in every geography has. You phrased it as water, how it touches everything, and we’re seeing that. So how do you segment it? There are a number of different ways: First, you can break it into: who are the AI beneficiaries, and who are those that will be disrupted by AI? Second, you can break it down into different bottlenecks. That’s a way I frequently use within the technology landscape: GPUs, CPUs, memory, networking, storage, data centers. Then you look at that framework and see which companies are most exposed to those bottlenecks. Third, you can ask: which industries will benefit from adoption? Is that biotech, transportation, warehousing? Which companies could be more negatively influenced — maybe that’s software? That’s how we try to create an AI Investing framework for where we should focus our investment efforts and determine the allocation that our clients can benefit from. Frazer (05:17) As we dive a little bit into how you’ve bucketed these themes across different areas, there’s the concept of benefiting from momentum or valuation versus maybe the cash flow and fundamentals of these different investments. I could imagine that, with the hype and mania around the space, there’s a lot of interest. How do you temper that valuation play versus analyzing what the cash flows look like? Kevin Shea (05:49) One of the most highly correlated metrics to stock outperformance is free cash flow per share growth. That’s often the most important metric, and we watch that heavily. What’s incredible — and we talked about this earlier with estimate revisions — is that many within the AI ecosystem are generating extremely healthy free cash flow growth and margins. A lot of that is in AI infrastructure. They’re being paid to supply all the equipment and semiconductors. There’s also this concept that valuation multiples shift to where there’s value creation. I’ll give an example: The SOX, the semiconductor index, used to trade at parity with the S&P. But there’s been a paradigm shift. A lot of the intelligence that’s being created through these models is powered by semiconductors, networking, packaging, and hardware. You’ve seen semiconductors go from trading at parity to trading at almost a 50% premium. At the same time, the market is intelligent; it’s shifted its view of software. Software used to trade at a 70% premium, and we think the intelligence layer has moved just one layer above where software applications normally sit. As a result, you’ve seen valuation compression for the IGV, the software index, from that 70% premium down to about 20%. Some people might look at the semiconductor index and say it’s more expensive than where it historically tr

  4. Jul 1

    College Success: Essential Tips from Laurie Dhue

    For many, college success seems pre-ordained and the rightful outcome of a thoughtful next generation development plan, But, we all know this isn’t always the case. One of the great fears for many families is a child stumbling with their first taste of independence and outside accountability. LAURIE DHUE shares insights on preparing young adults for college, focusing on the four S’s: sex, substances, self-esteem, and scholastics. This episode offers practical advice for parents and students to navigate independence responsibly and confidently and set those students up for college success. In recovery for 19 years and with a career in broadcast journalism at the highest levels, Laurie is one of the foremost experts in the field and armed with real world, personal experience. https://youtu.be/8JN2iM8gxWA Key Topics The four S’s framework: Sex, Substances, Self-esteem, Scholastics Importance of consent and online safety Managing peer pressure and peer influence Building self-esteem in the age of social media Practical safety tips for college students The role of family communication and support Long-term decision making and goal setting in college Recognizing signs of substance abuse and mental health issues Guest Name: Laurie Dhue Titles The 4 S’s of College Success: Sex, Substances, Self-Esteem, and Scholastics How to Prepare Your Kid for College: Essential Tips from Laurie Dhue College Success Sound Bites “Consent is the most important thing to discuss.” “Social media creates so much pressure on young people.” “One bad decision can lead to a tough time.” Chapters 00:00 Introduction to Recovery and Wellness 03:06 The Four S’s: Preparing for College Life 06:05 Navigating Consent and Relationships 08:50 Substance Awareness and Safety 11:58 Building Self-Esteem in College 15:42 Academic Success and Responsibility 28:49 Financial Literacy and Practical Majors 33:47 Final Thoughts and Key Takeaways Resources Family Wellness First Program – https://familyofficegrowth.com Laurie Dhue on LinkedIn – https://www.linkedin.com/in/lauriedhue/ Laurie Dhue on Instagram – https://www.instagram.com/lauriedhue/ Family Office Growth Partners – https://familyofficegrowth.com College Success Guest Links LinkedIn – https://www.linkedin.com/in/lauriedhue/ Instagram – https://www.instagram.com/lauriedhue/ The Citizen Heir Concept Transcript Preparing Kids for College: The Four S’s Framework Featuring Laurie Dhue | Hosted by Frazer Frazer: Welcome aboard, Laurie. Laurie Dhue: Great to see you. Thank you so much for having me on, Frazer. Frazer: It’s a pleasure to have you. Today we’re diving into an important topic: preparing kids for the transition to college and setting them up for success. You’ve had a remarkable career in broadcast journalism, and you’ve also been open about your personal journey with sobriety. Can you share a bit about your background? Laurie’s Background and Mission Laurie Dhue: I’m always grateful to talk about recovery and how sobriety can positively impact individuals, families, and communities. I’ve been sober since March 2007—so 19 years now. Sobriety has given me everything back, plus entirely new purpose and additional careers beyond television news. For the past year, I’ve been focused on building health and wellness resources for individuals and families—covering physical, mental, emotional, and spiritual health. Through my work with Family Office Growth Partners, we created a program called Family Wellness First, which provides high-level resources to help families maintain purpose, preserve legacy, and operate at their best. The College Transition Challenge Frazer: We talked beforehand about how this work applies to many areas, but one that deserves more attention is preparing kids for college. You’ve framed this around the “Four S’s.” Walk us through that. The Four S’s Overview Laurie Dhue: The Four S’s are: Sex Substances Self-esteem Scholastics College brings freedom, independence, and opportunity—but also risk. For many students, it’s the first time making decisions without parental oversight while navigating relationships, substances, schedules, and academics. 1. Sex: Consent and Boundaries Laurie Dhue: Consent is the most important concept. It must be clear, ongoing, and voluntary. It can be withdrawn at any time. Young men need to understand responsibility for ensuring mutual comfort. Young women need to understand that attention or kindness does not create obligation. Alcohol complicates this significantly by lowering inhibitions and increasing risk. It’s also important to understand that sex is not a reliable source of validation or self-worth. Practical guidance includes: Use protection Communicate plans with friends Stay aware of surroundings Know campus resources (health center, security, emergency services) 2. Substances: Risk Management and Awareness Laurie Dhue: Substances can derail judgment, safety, relationships, and academic performance—especially early in the first semester. Key guidance: No pills, no powders (due to fentanyl risk) Be cautious with alcohol; it impairs decision-making Never accept drinks you didn’t see prepared Warning signs of a problem include: Obsessing over the next opportunity to drink or use Repeated negative consequences with no behavior change Missing classes or experiencing memory gaps Friends expressing concern Students should have prepared ways to say no and understand that not everyone is engaging in heavy substance use. 3. Self-Esteem: Identity and External Pressure Laurie Dhue: Social media has intensified comparison and pressure around appearance, lifestyle, and status. Ways to build self-esteem: Attend class consistently Tell the truth Leave uncomfortable situations Treat others with respect Make decisions you can live with the next day Support systems are critical: Friends Extended family (aunts, uncles, mentors) Counselors and campus resources Asking for help is a sign of strength, not weakness. 4. Scholastics: Discipline and Structure Laurie Dhue: Freedom in college requires discipline. No one is managing your schedule, so students must build structure early—especially in the first semester. Key habits: Prioritize sleep, nutrition, and exercise Review notes regularly Start assignments early Use planners or digital calendars Seek tutoring when needed Discipline is a form of self-respect. Financial and Academic Practicality Frazer: Students should balance curiosity with practicality—developing skills that translate into career opportunities. Avoid unnecessary debt and understand basic financial concepts like compounding. Even small financial decisions can have long-term consequences. Laurie Dhue: Agreed. Use debit cards where possible, avoid unnecessary credit, and think carefully about major purchases. Practical majors today include: Nursing Accounting Engineering Computer science Finance Supply chain and operations Information systems Students don’t need to decide immediately, but they should move toward a viable path. Final Takeaways Laurie Dhue: One poor decision can have lasting consequences Small decisions compound over time Asking for help is a sign of maturity College is about learning to manage freedom—not proving independence through risk-taking Trust your instincts—if something feels off, it likely is Where to Find Laurie Laurie Dhue: LinkedIn: Laurie Dhue (Family Office Growth Partners) Instagram: @LaurieDhue Facebook: Laurie Dhue I’m always happy to connect and help families navigate mental health and substance use challenges. Frazer: Terrific. Thanks for being on. Laurie Dhue: Thanks, Frazer. Keywords college prep, young adults, self-esteem, substances, consent, college safety, mental health, family wellness https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

  5. Jun 18 ·  Video

    CITIZEN HEIR

    Citizen Heir: How Engaged Citizenship Helps Solve The Three Generation Rule Destroying Most Wealthy Families https://youtu.be/yyt4d271lSU Citizen Heir Successful families right now are struggling mightily to raise their kids to be productive, moral people in an Instagram me‑first world. The question I keep hearing from parents who are serious about it is, where do you turn when achievement gets measured in dollars and likes? The stories of ruined generations are as old as time itself. There’s even a phrase for it: “shirt sleeves to shirt sleeves in three generations.” Every culture has a version of that saying, and they all mean the same thing. The question I keep coming back to is, why do some families break that pattern when so many others don’t? The ones who do almost always took seriously something harder than drafting a good estate plan. They took seriously the job of raising a good heir. And today, I want to share a concept that comes back constantly in those conversations I have with clients. I call it the “citizen heir.” Citizenship has been on my mind a lot lately with America’s 250th birthday coming up. We live in divided times, and the discourse around civic responsibility has suffered for it. Many people feel the core ideas and institutions are no longer worthy of their trust. We’ve become loose from our moorings. That might sound like a political observation, but it’s actually a family one. Because when you strip away the noise, what families with significant wealth are really doing is trying to transmit values alongside resources. And that’s exactly where most of them run into trouble. They get very close to the money, and sometimes in the process, they forget the values part. Here’s the connection I keep making. A good citizen and a good heir are operating under the same moral logic. A good citizen doesn’t treat rights as pure entitlement. They understand they’ve received something they didn’t fully build. It could be a society, a tradition, a set of institutions, yet they’re responsible for what they do with it. A good heir works exactly the same way. Wealth isn’t a possession, it’s actually a trust. In Jewish, Christian, and Islamic traditions, this idea is ancient. Wealth is treated as something given for service, not self‑indulgence. A faithful person uses what they receive with humility, with charity, and with accountability. The good heir honors the giver by using the inheritance wisely. Both are tests of whether a person can handle a gift without becoming enslaved by it. Politically, a good citizen sustains the republic, not just by obeying laws, but by defending institutions and resisting the pull toward passive entitlement. A good heir does something analogous within a family. They preserve capital and avoid waste. They use resources in ways that strengthen something larger than themselves over time. In both cases, the person is a custodian of an order that predates them and should outlast them. Citizenship without duty is just a passport. Inherited wealth without responsibility is just a balance. Both require something from the person holding them, or they stop meaning anything at all. Neither the citizen nor the heir chose the structure they were born into, but both are answerable for what they do with it. The good citizen and the good heir each prove something to themselves by converting privilege into obligation, and obligation into something durable. A family’s educational efforts have to acknowledge that reality. Preparing an heir isn’t a side project. It deserves as much attention as any other part of the plan. https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/ https://frazerrice.com/10-family-office-myths-exposed/ https://www.jamesehughes.com

  6. Jun 7

    THE NEW CEO SOCIAL MEDIA PLAYBOOK

    The New CEO Social Media Playbook: Communications Strategies in the Digital Age for the Modern CEO. In this episode, TED MERZ from Principals Media discusses the seismic shifts in corporate communications, exploring how CEOs can build authentic visibility in a rapidly evolving digital landscape, and the future of traditional media. https://open.spotify.com/episode/6MLjRILrkeCPhlG6ItXaMC?si=uQP9CdYORpmr89iL4dfMvg https://youtu.be/clHzhrOZAps Key Topics The decline of traditional PR channels like CNBC and The Wall Street Journal and the rise of direct content creation for thought leadership. The importance of authenticity and transparency in CEO messaging, with real-world examples such as McDonald’s CEO controversy and insights into crisis management. Strategies for leveraging social media platforms—LinkedIn, X (Twitter), YouTube, and emerging tools—for building personal and corporate reputation. The evolving role of AI in shaping search results and online identities, emphasizing the need for content influence. The significance of visibility across multiple channels and the concept of the “public record” for professional branding. Balancing platform choice with audience targeting and the importance of integrated content strategies. The future of content formats: long-form videos, short clips, point-of-view storytelling, and the normalization of CEO participation in digital media. Traditional media’s ongoing role in establishing credibility within a pyramid of influence, from legacy outlets to influencer-generated and user content. Timestamps: 00:00 – Introduction to CEO communications in the digital era 02:00 – The decline of traditional media outlets for corporate messaging 05:00 – Case study: McDonald’s Big Arches video controversy and lessons learned 07:30 – Why engagement in digital platforms is no longer optional for CEOs 09:00 – Platform strategies for business communication and audience targeting 11:00 – The future role of CEOs on YouTube and social video content 13:00 – Authenticity and AI’s impact on content credibility 15:00 – Cross-platform content distribution and emerging channels like Substack 16:00 – Measuring success: from vanity metrics to real business impact 17:00 – The complexity of linking social media efforts to sales and hiring outcomes 19:00 – Building visibility to enhance reputation and company valuation 20:30 – The importance of a balanced media approach—traditional and digital 22:00 – Influencer dynamics, user-generated content, and organic reach 24:00 – The societal shift towards individual visibility and personal brand 26:00 – The relevance and future of traditional media in a digital-first world 28:00 – Strategies for influencing AI-driven search and online biography management 29:30 – How organizations can foster authentic employee advocacy 30:50 – Resources to connect with Ted Merz and his ongoing projects Resources & Links: Principals Media Pricing Culture — The Bloomberg for Collectible Data LinkedIn X (Twitter) YouTube Substack Connect with Ted Merz: LinkedIn Twitter Insights: CEOs should view digital visibility as a fundamental communication muscle. The importance of integrating long-form content, short clips, and authentic storytelling. The shifting landscape where legacy media remains valuable for credibility, but influence is increasingly driven by digital presence and influencer narratives. BRAM WEINSTEIN ON “BREAKING THROUGH DIGITALLY” https://youtube.com/shorts/Ia_X8A_WhG4?feature=share Transcript Why CEO Communication Is Changing Frazer Rice: Welcome back to the Wealth Actually Podcast. Apologies in advance for the head cold. I’m joined today by Ted Merz of Principals Media. We’re discussing how CEOs are navigating communications, the role of social media, and whether traditional media is still relevant. Frazer Rice: Ted, welcome. Ted Merz: Great to be here. Thanks for having me. Frazer Rice: We met at a dinner in New York, and I was struck by your perspective on the shift happening in PR. You advise CEOs on communications—what are you seeing? Ted Merz: We’re in the middle of a major structural shift. Traditionally, companies relied on PR firms to secure placements in outlets like CNBC or The Wall Street Journal. That’s becoming less effective—those platforms are more competitive, often paywalled, and in some cases shrinking. Ted Merz: At the same time, more people want access to that exposure. So companies are going direct—creating their own content through social media, podcasts, video, and written thought leadership. It allows them to bypass traditional gatekeepers and control their narrative. Risks, Authenticity, and the Learning Curve Frazer Rice: It also gives you more room to develop your ideas. But we’ve seen cases—Sam Altman, for example—where messaging goes sideways. Is that inexperience or the format? Ted Merz: It’s not the format. There’s always risk in speaking publicly—people can react negatively. Sometimes it’s inexperience, but more broadly, this shift is inevitable. Ted Merz: If you want to reach younger audiences—late millennials and Gen Z—they’re not watching CNBC or reading newspapers. They’re on YouTube and Instagram. So participation in digital media isn’t optional. Ted Merz: That said, there’s a learning curve. Executives aren’t always comfortable, and mistakes will happen. Frazer Rice: Just look at the reaction to a poorly thought-out tweet—it can spiral quickly. Ted Merz: Exactly. But opting out is the bigger risk. If you’re not visible, you’re not part of the conversation. Choosing Platforms: LinkedIn, X, YouTube, Substack Frazer Rice: I’ve leaned into that with this podcast and more activity on LinkedIn and Twitter. But there’s a tension—should you focus on one platform or meet clients wherever they are? Ted Merz: It’s not about the platform—it’s about communication. You’re either writing or creating video. Ted Merz: For most businesses, LinkedIn is the best starting point. It’s professional, relatively forgiving, and widely accepted. But platforms are evolving quickly. Ted Merz: For example, X (Twitter) is now supporting long-form content—5,000+ word essays—and has become a hub for thought leadership in finance and tech. It’s more intense and less forgiving than LinkedIn, but that may be where your audience is. Frazer Rice: That’s part of why I moved my podcast to YouTube. If you’re not on YouTube, you’re invisible to Google. But not everyone is comfortable on video—how do you handle that? Why Video and YouTube Matter for CEOs Ted Merz: I tell them to get comfortable. Ted Merz: YouTube is the new television. It’s where attention is going, and it rewards creators financially. Companies need to develop video capability. Ted Merz: Written content conveys ideas well, but video builds trust and familiarity. That’s critical today. Ted Merz: Historically, CEOs didn’t communicate this way. But now you see leaders like Mark Zuckerberg, Jamie Dimon, and Jon Gray using video regularly. That legitimizes it. Within a few years, this will be standard. Frazer Rice: There’s also a push for authenticity. Overproduced or AI-generated content feels hollow, especially with growing fatigue around corporate messaging. Ted Merz: That’s right. But authenticity doesn’t mean abandoning standards. You can still communicate clearly and thoughtfully. Ted Merz: Also, content is increasingly distributed across platforms—LinkedIn, X, YouTube, Substack. Substack, in particular, is emerging as a strong platform for serious thought leadership. Ted Merz: Importantly, in business, the goal isn’t to go viral. It’s to create a credible public record—so when someone looks you up, they see someone thoughtful and worth engaging. Measuring Impact: Beyond Vanity Metrics Frazer Rice: That raises the question of metrics. How do you connect social media activity to actual business results? Ted Merz: It’s difficult. Social media behaves more like brand advertising than direct response marketing. Ted Merz: Vanity metrics—likes, shares—can be misleading or manipulated. The connection to revenue is often indirect. Ted Merz: But you can see impact anecdotally. One client told me they couldn’t tie posts directly to sales, but they were attracting better job candidates who already understood and trusted the firm. That’s real value. Frazer Rice: And what about search? It used to be about controlling Google results. Now with AI-driven search, that’s changing. Ted Merz: Exactly. Large language models now shape how people are perceived online. You can’t fully control that, but you can influence it by consistently publishing clear, factual content. Ted Merz: If you don’t, the narrative will be created without you. Personal Brand, Corporate Brand, and Goodwill Frazer Rice: I think of this as building personal and corporate goodwill—like managing the name on the back of the jersey as well as the front. Ted Merz: That’s a great way to put it. Ted Merz: We’ve also seen a cultural shift. In the past, companies emphasized the collective—“there’s no I in team.” Today, we’re in an attention economy where people connect with individuals more than institutions. Ted Merz: That’s why CEOs are becoming more visible. It helps the brand, and it reflects how audiences engage. Ted Merz: Companies are also trying to involve employees, but that’s tricky—you can’t fully control messaging and still have authenticity. Frazer Rice: Which brings us back to the core tension: authenticity versus control. Ted Merz: Exactly. Is Traditional Media Dead? Frazer Rice: So is traditional media dead? Ted Merz: No—but its role has changed. Ted Merz: Think of it as a pyramid. At the top is legacy media, which provides credibility and validation. Below that are

  7. Jun 2

    GETTING THE BUSINESS READY TO SELL

    ALEXANDRIA SEYDEL from Ripples Edge Advisors shares expert strategies on “getting the business ready to sell.” We focus on exit planning and getting the most value out of the transaction. Discover how early planning, owner mindset, and strategic positioning can lead to successful exits and satisfied owners. https://youtu.be/8OwhCRCBZl4 https://open.spotify.com/episode/2qawd64OYzljBvU9xqS8df?si=1Xvv2OUFSbeBtUDeJGTMXg KEY TOPICS Early exit planning and owner mindset, Getting the business ready for sale and transfer. Risk assessment and deal readiness. Owner satisfaction and post-sale happiness. Capital raising and growth strategies. SOUND BITES for “GETTING THE BUSINESS READY TO SELL” “Getting clear on owner success is crucial.” “Start exit planning 2-5 years in advance.” “Family dynamics can be deal breakers.” Chapters 00:00 Navigating Business Exits: An Introduction. 02:57 Understanding Owner Satisfaction Post-Sale. .05:55 Preparing for Sale: The Importance of Readiness. 09:00 Building a Succession Plan for Business Continuity. 11:49 Assessing Business Value: The Exit Readiness Assessment. 15:08 Evaluating Growth Opportunities and Capital Needs. 17:58 Cash vs. Equity: Making Informed Decisions. 21:03 Finding the Right Buyers: The Role of Advisors. 24:08 Addressing Family Dynamics in Business Sales. 26:59 Checklist for Business Owners Considering Sale. RESOURCES Ripples Edge Advisors – https://ripplesedgeadvisors.com/ GUEST LINKS LinkedIn – https://www.linkedin.com/in/alexandriaseydel/ QSBS For Founders – https://frazerrice.com/qsbs-for-founders/ TRANSCRIPT Frazer Rice Welcome aboard, Alex. Alexandria Seydel Hi Frazer, so nice to be here. Thank you for having me. Frazer Rice Thank you for being on. We’re at a time now with the economy where it feels like it’s roaring. Valuations on things are going up, up, up. And people who have founded businesses are exploring their options. That’s kind of where you step in with your firm Ripple’s Edge Advisors. Talk to us about what you do to help founders get ready. Not only in understanding what they have in their own business. How to go through the daunting process of exploring their options. Getting their business bulletproof for when people start looking under the hood. Alexandria Seydel Absolutely. My background is as an M&A attorney, so I came from the deal side. My co-founder is an operator — she actually knows how to run the businesses. It’s a very good duo. I think like a buyer, first and foremost. That’s how I was trained. So how we help business owners now is we jump in two to five years before exit. We’re trying to solve a problem still being missed by most of the industry. Brokers and bankers know how to get deals done, create auctions, create demand, and sell for high prices. That’s all great. But the gap I was seeing was the need to jump in with the owner before that process. Getting clear on what’s a win for them. There are some startling stats about owner dissatisfaction post-sale. Some surveys show 70 to 80% of owners are dissatisfied after selling. I’d argue that’s not because they sold — it’s because they sold to the wrong person in the wrong way. So it’s the who and the how. Jumping in with them earlier. Before we go to market, Before we start talking multiples and financials. Getting with the owner and doing the work on what a win looks like for them. What do they care about in the process? When they think about their life through this deal and post-deal, what do they want to feel and see? How do they want to operate on an average Tuesday. Yes, after all the cool vacations with all the freedom and the new chapter. After that, what do you want to be doing? And when you look back at that beautiful business you built and then sold, what do you want to see in it? Is it that client service remains the same? Is it that the ethos of the company remains the same? Or is it simply: “Alex, I’m satisfied with the biggest wire at closing we can get, and I’ll be a happy camper moving on to the next phase of life.” Really getting with that owner earlier to get clear on that — what’s a win for them and what’s a win for their business — that’s where we start. Then we begin implementing and helping them build those exit strategies from there. We believe that foundational vision and values work is really going to help bring down that dissatisfaction number. So now we’re building an exit that feels right for the owner, right for the business, and helps them feel good about that transaction. Frazer Rice From the estate planning and tax planning side of things, I totally agree that the earlier you start, the more tools you have at your disposal and the better it turns out. I did a piece on pre-exit planning — really engineering what your calendar is going to look like a year after the sale. And I see a lot of dissatisfaction with people who sell and then lose purpose, or aren’t quite equipped to deal with their lower participation in the thing they built, the baby they helped give birth to. They end up unmoored, and that’s part of the depression they sometimes feel if they haven’t really gamed it out and thought through how to replace the structure and the drive it took to build something. It sounds like we’re saying the same thing from slightly different angles. Alexandria Seydel Totally, absolutely. On your side, you’re such a critical part of the team when we start this process. One of the first two questions we ask every client is: who’s your wealth advisor, and who is your tax strategist? Hopefully they’re already in communication, but if they aren’t — you’re looking at the personal side, focused on what the family structure looks like financially, the tax strategies and planning that we know has to happen. And because you’re doing this work — which not all advisors do — you’re getting really clear on the personal side. I’m coming at it from the business balance sheet and business trajectory; you’re coming from the personal side. They work well together. I like to jump in early with the other advisors working with these owners to get really clear, because not only do we know there are structural and strategic things we need to put in place years in advance, but we also need to get clear on what’s a win for them personally and business-wise. Frazer Rice One of the things you mentioned is the idea of getting the business ready to be sold. I’m fast-forwarding to the concept of getting it Sarbanes-Oxley ready in case a public company wants to buy it — so it can slot neatly into a balance sheet. But that’s really shorthand for saying things are professionally managed: bookkeeping, process, accounts receivable, accounts payable — all formally documented. So that when a buyer starts looking under the hood, they don’t start applying discounts for things they’ll have to fix later. Is that part of what you do? Alexandria Seydel Exactly. Being trained as a lawyer on the buy side, my goal — usually at the 11th hour — was to advise my client, the buyer, on risk. And to assess whether the purchase price offered in the letter of intent actually held up once we looked under the hood. The best part of my job now — and way more fun — is that instead of just identifying risk and applying discounts (because almost every deal goes through some form of repricing), I’m jumping in with the sellers and owners hopefully a year or two in advance. We find things a buyer is going to see as a risk, things that would prompt a reprice, and we now have the opportunity to make those things shinier. So that when the buyer looks under the hood, the high end of the multiple range is validated. It’s not just the financials the purchase price is based on — it’s all the other things buyers care about: the people, the processes. Is this a truly transferable asset they can step into, run, and grow? Another big thing we work on is owner dependence. Most owners think the business doesn’t depend on them, but there are often significant opportunities to continue reducing that dependence — so that a buyer sees this as a true transferable asset they can step into and grow. Frazer Rice I imagine there are a couple of come-to-Jesus discussions where you have to tell the owner their revenue is too dependent on them personally. On one end of the spectrum, think of a law firm where business comes in because people think you’re a great lawyer — that doesn’t transfer cleanly. You want the recurring revenue to come from somewhere else. That’s one issue I’m sure you have to sit someone down and address. The five-year runway is helpful there — it gives you time to build in a succession plan, not just for the sale, but operationally, so that value still sits in the business whether you’re there or not. The second thing I find interesting is where you sit somebody down and say: this would look a lot better if you took less money out of the business. If we can put that back into EBITDA, then when a buyer starts applying multiples, they’re multiplying against something bigger rather than against a number deflated by, say, buying a boat. Do you get into that conversation? Alexandria Seydel Yes, we do, and we take a cursory look at that fairly quickly. Then we bring in support if needed — whether that’s on the accounting side, how money flows through the business to affect the bottom line and create the story. Every buyer wants at least three years of financials; we want that growth story to look strong, and we want to start building it now. If we need to bring in a fractional controller or a fractional CFO depending on the size and sophistication of the business, that’s something we pull in right away. On your first point — we actually have an architect client right now at exactly that phase. He has a right-hand woman archi

  8. Apr 24

    Bringing Simplicity Back to Investing

    In a world of noise and distraction, there is a trend in “Bringing Simplicity Back To Investing.” RICK FERRI and I talk about why it’s important for investments and why it’s important for individuals. You’re going to leave here understanding a new framework for looking at your investment portfolio and hopefully bring some peace of mind as you go forward. https://youtu.be/8EFnt_UTjEA Rick Ferri has been a good friend to the podcast. He shares his insights on simple investing, emphasizing the importance of clarity, discipline, and understanding the core principles of investing. He discusses the pitfalls of complexity, the value of index funds, and how to maintain a disciplined approach amidst market noise. https://open.spotify.com/episode/743dxOLLgZjUzKszZo4Owy?si=57mqK1ZmQ0a7LPdcwVoQ-g Keywords investing, index funds, simplicity, portfolio management, financial planning, discipline, asset allocation, tax efficiency, global growth, investment philosophy Key topics The philosophy of simple investing The stages of investor learning: darkness, enlightenment, and simplicity The importance of cash flow and intrinsic value in investments Asset allocation based on liabilities and time horizon Tax-efficient investing strategies for taxable and retirement accounts Risks of alternative investments and private equity in retirement plans Discipline and automation in maintaining investment strategies Chapters of “Bringing Simplicity Back to Investing” 00:00 The Philosophy of Simple Investing 07:03 Stages of Investment Understanding 11:19 Financial Planning and Purpose 17:57 Implementing a Simple Portfolio 23:01 Discipline in Investing 30:46 Navigating Complexity in Wealth Management Resources Rick Ferri’s Website – https://rickferri.com Bogleheads.org – https://bogleheads.org Index Fund Book by Rick Ferri – https://www.amazon.com/s?k=Rick+Ferri&ref=nb_sb_noss_2 Website – https://rickferri.com Twitter – https://twitter.com/RickFerri Skeptic’s Guide to Investing Outline: “Bringing Simplicity Back To Investing” Introduction: Three parts to simple investing: Philosophy, Strategy, Discipline Part 1: Philosophy: Overview: Embrace Simplicity – the Education of an Index Investor – 4 stages 1: Born in Darkness (who you ask, chasing returns, naive research) 2: Finding Enlightenment (measure, compare, enlightened) 3: Complexity Traps (slice’n dice, factors, the fallacy of perfection) 4: Embrace Simplicity (global equity, specific fixed-income as needed) Part 2: Portfolio Strategy Overview: Making the Philosophy Work for You 5: Setting Goals (family – culture, career – taxes, risk tolerance) 6: Managing Risk (three ways to allocate assets: required return, risk avoidance, cash-flow) 7: Tax Management (three account types, asset class tax, tax avoidance) 8: Investment Selection (ETF vs fund, balanced funds & TDFs) Part 3: Discipline: Overview: Implement, automate, stay the course 9: Implement fully (consolidate, tax issues, lump sum vs DCA) 10: Maintain regulatory (automate new, rollovers, TLH) 11: Adjust as goals change (accumulation vs distribution, tax situations, legacy) 12: Stay the Course (recommit occasionally, continue ed., conferences) Transcript of “Bringing Simplicity Back to Investing” Frazer Rice (00:00.962) Welcome aboard, Rick. Rick Ferri (00:02.3) Well, thank you for having me. Frazer Rice (00:04.258) Well, thank you. First of all, want to thank you for a kindness you showed me way back in time and having me on the Boggleheads podcast. It was probably worth at least 25 % of my book sales and it was a lot of fun to do and never forgot it. So it took a while, but here we are back on my podcast. And what I want to do is go through a little bit about really the three parts to simple investing, which I think is something, especially now with the proliferation of alternatives, a lot of noise with crypto. That sometimes we kind of lose sort of the forest for the trees as far as what’s the right things to be thinking about in terms of an overall investing philosophy sort of embrace. And so maybe let’s start with that. How do you think about the parts to a good investing thesis and what is your overall worldview on that? Rick Ferri (00:55.804) So I’ve been in the investment advisory industry now for 40 years. And what I have learned is that the simpler you can make investing and the simpler you can make the portfolio, the better for you, the better for your family, the better for those who will inherit your portfolio. Don’t make it complicated. Complexity is just job security for those people who are selling you things and trying to manage your money. And in the end, you don’t benefit from that. They do in the form of fees. And if you just had a simple portfolio of a few good index funds and maybe some individual securities, you’ll be much better off and your family will be better off in the long term. And that’s the philosophy of simple investing. Frazer Rice (01:50.947) Mm-hmm. Rick Ferri (01:53.208) The second part is a strategy. How do you go about doing this, particularly if you’ve had a complex portfolio? And the third thing is discipline, which is how do you stick with simplicity as an investment philosophy? Frazer Rice (02:06.318) Sure. and without the second two, it’s great to have high-minded thoughts and so on, but if you can’t do it, it’s all for naught, and then if you can’t stick with it, then the best laid plans just kind of go asunder here. So let’s go back to the philosophy for a second here, and as you think about, it’s almost like the life cycle of discovery and learning about how these things work. How do you think about that from an ARC perspective? Rick Ferri (02:12.561) Ha ha. Rick Ferri (02:36.05) So generally when you’re new to investing, you’re going to ask other people for advice. I where you get that from, might be a friend or family member, maybe a professional advisor, might be coworkers, maybe you’ll just get on the internet and start searching. I don’t know, but 99.9 % of the time you’re gonna run into advice that is not very good. And the advice will be, you should put your money here, you should put your money there. Use these 10 different funds. It’s just a lot of confusion, quite frankly. I call this stage darkness because you don’t, you you’re just investing in the dark. You don’t know. And a lot of the advice is going to be very short based upon short-term performance. So recency biased people are going to be recommending, but you know, growth stocks because the Magnificent Seven has done well in the past. Or buy crypto because crypto went up a lot in the past and so therefore you should buy it now. And so most of the advice you’ll get in darkness is going to be recent based upon recent performance and rather than looking at it over say how should you be investing over 10, 20, 30 years and that will end up being quite different. So darkness is where we all begin. And most people stay in darkness. They never get out of darkness because they don’t put the brain cells to work to look at how am I doing? I mean, how has that done for me? What seems to be happening in my portfolio? Really? Do I really know what’s going on? And then the ones who are very fortunate start asking questions about, what if I just Frazer Rice (04:06.125) You Rick Ferri (04:31.334) bought the market and bought an index fund and just got the return of say the US stock market or the international stock market and that’s all I ever did. Would I be better off? And the answer to that 98 % of the time is yes, you would be better off if that’s all that you did. And if you come to this realization, I call it the second stage, which is enlightenment, where you now realize that, okay, all the stuff I’ve been doing may have been okay. I’ve been moving in and out of things, but now I need to start looking at just buying the market and holding it for the longterm. And that’s enlightenment. But for some people, it doesn’t stop there. And they start to dig into this idea of indexing. When you start doing that, it’s good that you’re learning, but you’ll start running into a whole lot of noise. That is alternative indexes, enhanced indexes uh… explore strategies all of these things that you’re going to take this nice simple concept called indexing and make it complicated again. So you start adding all these things to your portfolio because it has the word index in it or maybe the word passive in it and uh… advisors are notorious for doing this it’s called complexity for job security Frazer Rice (05:39.148) Right. Rick Ferri (05:54.066) Basically, are, you know, you take the idea of indexing and you just add a lot of things all around the edges of it and you make a simple portfolio complicated. So the third stage of this process of simplicity is complexity. In other words, you’ve made something simple complex. Okay, so the last stage is Frazer Rice (05:54.221) You Rick Ferri (06:18.544) Simplicity. That is that you realize this is going on. You realize that all the stuff that you’re adding to your portfolio is just making it all complicated again. And that the people who are benefiting from this are not you, but the people that are selling you all this stuff. And you say, that’s it, I’m done. I’m going back to my second epiphany, if you will, which is simplicity. I’m just going to go back to a simple portfolio of a few broad index funds, US stock market index fund. An international stock market index fund that covers the whole market and a couple of bond funds, municipal bond fund and maybe corporate bond funds or treasury bond funds. And you could use index funds for those as well. And it’s a really low cost, very tax efficient and very simple. Frazer Rice (07:05.953) A couple of quick asides here. The first one is for people who are com

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Covering the issues that affect business, entrepreneurship, wealth, trusteeship and culture.

Information

  • Creator
    Frazer Rice
  • Years Active
    2015 - 2026
  • Episodes
    211
  • Rating
    Clean
  • Copyright
    © 2025 Wealth Actually LLC
  • Show Website
    Wealth Actually

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