Ep 276: Peyton Hoppes

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Welcome to the weekly Wealth Podcast.

I am certified financial planner David Chudick.

This podcast and my wealth management practice are both designed to help the mass affluent to live better lives by how they handle their money.

We talk about financial strategies, prosperous mindsets, and simply how to build true wealth.

So come on and let's enjoy this journey together.

Hey everybody, we have a treat today.

You don't have to listen to just my voice.

We've had a lot of solo episodes lately, which I really enjoy.

But I also love talking about money, talking about financial planning, and really just talking with cool people.

So speaking of cool people, I have a friend of mine today, Peyton Hoppus.

We've known each other for a good couple years.

We've worked very closely in the past, but Peyton's done a little career move and I wanted to hear a little bit about that.

And then we're going to talk about some of the problems, some of the financial issues we've been seeing with our clients and prospects in our own practices.

But.

Hey Peyton, how are you?

Hey David.

Appreciate you having me on and asking me to be on this is, it's a great honor.

Yeah.

We've known each other for I don't many years is basically what I'm saying at this point.

Enough we can give each other a hard time about the perfections and imperfections of each other.

So it's been a great friendship and relationship.

But yeah, so I, Dave and I worked together at the same firm for a while and there's an opportunity that opened up for me locally where I'm at in the upstate of South Carolina to help retire an advisor.

And so I've joined a group called Provost Wealth Advisors out of Spartanburg.

And the focus really is to myself.

And there's another advisor here named Gabe that will help tag team the retirement plan for the retiring advisor named Noel.

And there's a lot of groundwork to do, which good groundwork.

But there's a lot of opportunity here.

And so I'm excited to fire that off and jump into that kind of head first.

But a big focus on what Gabe and I want to.

Want to really target is families with busy lives that have high needs in the financial space, and that is management, that's understanding the tax opportunities in front of them, being proactive with planning.

And then we want to be a sharp leading edge in how we invest.

And so we want to bring that to the forefront and make sure that what we put in front of clients and friends is the best opportunity for the highest and best use of your money.

And so that's our focus.

And a lot of that's business owners, medical professionals, families with special needs children.

Those are the three areas we've put a good bit of focus and we'll continue to for the foreseeable future.

You have a couple kids, you're running a business, you're doing a lot of things.

And a lot of your clients, I would guess, are very similar.

And I really think that in today's world of AI, the knowledge is out there.

You can figure out the IRA rules or an individual can.

But I think what you do and what I do is we're going to take the clients that are in their 30s and 40s and have four kids and are busy and say, hey, let's get together every quarter.

Let's deal with the things we need to deal with.

Let's make the decisions.

Because the decisions that are easy to make, they're also easy not to make.

And the things that are easy to do, let's say get some life insurance because you have some kids, it's also easy just to not do.

And thinking about getting life insurance or thinking about opening up an investment account does not have the same result as actually getting life insurance or actually opening up a brokerage account.

That's right.

And I know you have a.

You have an athletic background.

I'm sure you've probably had some coaches in the past that kind of made you do some things you didn't want to do, but there's where the results came from, right?

Yeah.

I miss those coaches because I definitely don't get the same physique that I had back in college when I was cheering at Clemson.

And so it's.

You need somebody in your life that's going to say, look, there's a thousand workouts out there, Peyton.

Okay?

But for what you're trying to achieve, we can do a six month or six week or whatever cadence to get you in shape for season or XYZ results.

And that's ultimately what the game we're playing here.

I want to be competitive.

And what we bring, what I'm bringing, what you're bringing to the table, we want to be good at it.

And then also we want to be able to bring the workout for a period of time.

Whether it's every quarter we work through something or a couple times a year we meet with clients and then just.

And figure out what they need to solve for.

I know a big piece of that.

You know, you and I have talked a lot about cash flow and kind of you talking about some of the examples we've seen.

A big piece of what I've seen is in the families I work with, the average families somewhere in the ballpark of early 30s to maybe early 50s.

That's the majority of my clientele.

But they are typically busy.

Some of them are single income families.

One's a stay at home spouse, but they have a couple kids or but they're an executive or they're a business owner or they're in a space where they're both medical professionals in some capacity and they just hear all this stuff on Instagram, TikTok, everywhere you can get it and they go, what's right?

What's wrong?

What do I do?

And the biggest thing I can tell you is between.

I'm a millennial.

So between the ages of about 28 to about 45 to 47, give or take in any generation is the biggest family formation years.

So you're gonna spend most of your money in those years raising a family.

And that tapers and your freaking kids.

Are not cheap, man.

These kids, they want a lot of expensive stuff.

Yeah.

Just it's 1200 a year just for like gymnastics classes once or twice a week, whatever the structure is.

You have girls, correct?

I got a girl, Whitley and then Wilkes and Walker, the two boys below her.

So got three kids.

Which one are more expensive?

I have all boys and I think, I tend to think that boys are cheaper because they don't like the expensive girly stuff.

What do you think boys eat probably more and they destroy more.

So when they get older they become teenagers.

Like you got to borrow money to be able to protein.

Yes.

Yep.

The problem is the girls are probably.

They need more individual things to make up the hair, the all the products and where the guys are like I'm just going to wash my face and leave the house.

Where in theory if that Whitley is wanting.

Yeah.

Even if you get that out of them.

But yeah, yeah.

The girl is more.

I like these accessory things.

So that's probably where the expense probably comes from.

It's attacked on to it.

But overall I would obviously the females are more expensive to raise.

That's studies and studies have been done to show that's the case.

It's just the risk is on the male side of it, if the males are going to play along with society, they're going to do dumb things.

We all know that the guys will take more risks.

So that's really where it's at is that's the biggest thing people are asking, how do I fund this life?

Yeah, I do.

How do we.

So you personally, like, I know you make a good living, but you don't have unlimited income.

Right.

You're not Elon Musk.

How do you and your wife, like, how do you decide where do we go on vacation?

Can we go on vacation?

Where do we buy clothes?

What school?

So many decisions.

What's your thought process in that?

Typically, yeah, it's hard because you want to be cheap and get the most out of life.

But cheap does not equate getting the most out of life sometimes.

So two oldest for now are in private school.

And I think there's a definitive timeline that they're working on because we've already said, hey, we'd like to get them in a different schooling system.

It's great.

We love it for what it's for, but just knowing the cost coming ahead, no matter how much money you make, it's just kind of a hard pill to swallow.

So we'll evaluate that.

But for the time being, we can afford it, we'll do it.

And then in the future we will get them in a position that we want long term.

Homeschooling or private school or charter school, something or.

I said private meant public school.

But when it comes to like vacations or making that decision as a commitment for a year, if I want to make a decision to go on vacation in September, I need, I run like five different bank accounts in checking and savings personally.

So we get the business and then I move money over like paychecks and then owners draw.

So I get the whole thing set up so I have a normal income stream.

But from that I segregate money each month to go into savings, to go into the tax savings account, and to go into the vacation or project savings account.

So when that number hits a certain amount, like 50% of what we can spend on vacation, then I will go ahead and book the vacation.

You typically pay 50% upfront for the Airbnb.

And so then I can afford the Airbnb by the time it gets there because I'm going to save up the other 50% before I get there.

So.

So I try and automate everything and that's the biggest thing, if you gave me another 10 grand in income tomorrow, okay, you make 10 grand a year more.

Just break that out every month.

And then start putting that money somewhere, post tax, whatever that number is.

And then that's how I do it.

As soon as I make another chunk of money or if there's an increase, then I'm going to segregate that.

And if there's a decrease, then the reverse of that happens as well, that I got to go out somewhere and figure out where to cut expenses.

So we're making decisions based on quarterly time frame.

Typically what I know what I'm going to spend for the next three months, and then from there I just kind of re up it.

It's too hard to plan out the whole year.

But we want to make sure we have good cash savings, and then we make sure that we have good cash flow.

And then I'm always decreasing expenses or paying them down like debt or getting out of a pay something off early.

We had to replace our AC unit.

You can't plan for that.

If I can pay cash for something, I'm going to.

And if I can't buy it twice, I'm not buying it once.

And so I don't.

Outside of an emergency, that's how we kind of operate.

So what I'm hearing that I love is, and this is a word I use a lot with my clients is purposefulness.

Right.

There are lots of different ways to be purposeful, but what you just described is you running your personal finances with a purpose.

Not just, hey, let's just go and put something on a credit card.

And when you do that, and you do that once and twice, all of a sudden, by the end of the year, you're $80,000 in debt, and it just happened.

The AC unit's gonna go out.

But if you're purposeful and if you've built up.

If we've built up an emergency fund, maybe it's not that much of a tragedy.

Talk to me, Dave.

I want to kick it back to you.

So typically in the family formation years to your point, we want to be purposeful.

We want to purposely invest.

We want to purposely pay down debt.

We want to think 10 years down the road on everything.

Okay, that's what I just described it.

Say it.

But I'm describing being very pointed with my money now.

So in five or 10 years, when the other AC unit needs to be replaced, anywhere in between I've got the cash reserves, or every year, I can maintain a certain lifestyle.

Like when we get Outside of the expenses of kids, because I didn't really go too much in the finances there, we do have this pretty dramatic change in opportunity and cash flow.

So then we start spending money a little differently or we start looking at money differently.

You're a little bit more on that side of the ball.

Yeah.

So talk about yourself experiences.

There's a couple of things to think about.

Number one, once you get the kiddos out of the house and maybe your house is paid off.

And I know I'm going to rag on you the millennial right now, but all the millennials are complaining how much, how cheap we were able to buy houses.

And there's some validity to it.

So let's say you're in your 60s and 70s and you bought a $200,000 house 40 years ago, and now it's paid off, and now it's literally worth one million and a half dollars.

And let's say you have, I don't know, six or eight or ten thousand dollars a month in Social Security.

And if you're really lucky, you have a pension.

And let's say you're someone who did well, but you're not Donald Trump, you're not Bill Gates, but you million if most of your expenses are covered by your fixed income, meaning your Social Security and maybe a pension.

And then if your investment accounts of 2 and $3 million, if that even gets a modest 5, 6, 7, 8%, then you have another hundred to $300,000 a year of income.

You're on the other side of cash flow planning, which is let's spend money in a way that gives us a better life for the years that we have left on earth.

Yeah.

Because I.

You're a believer and I'm a believer.

And we're, we've been described as our time here on earth as a vapor.

And as we get older, you start seeing your friends and relatives not here any longer.

Right.

So does it make sense in your late 60s, mid-60s and up, continuously see your net worth go up just by market growth?

Or would it make sense to talk to your advisor, talk to your, your husband, your wife, the people around you about how can I make the world better with some of this money?

Should I maybe write a check for my grandkids college tuition?

And I think just one more thing we'll talk about on cash flow planning is give some thought again, this is when you're at that point where you're probably at the freedom point where you'd have to try to spend all your money, does it make Sense to leave money to heirs when you die only, or would it make sense to wait, watch them enjoy some of that money while you're still alive?

And it doesn't have to be one or the other.

But I think working with a financial advisor, like, I can show you, if you were Peyton, who's 71 years old, I can show you how likely it is for you to run out of money if you have X amount of money and what your expenses are.

And I can probably prove to you that, hey, if you gave away $15,000 a year, you're still almost never going to run out of money.

Maybe you can have your $15,000 a year make the World a Better place fund.

And for while you're still on this earth, you can see because maybe you have all you you're 70.

What else are you going to buy?

But maybe there is somebody who needs something.

And of course, there are tax advantages of giving to nonprofits, but sometimes there's just a friend that their car's broken down and they need help.

So cash flow planning, a lot of people think about it as like, Dave Ramsey, don't spend.

And that's part of life.

But then we all hopefully get to a point where it's like, hey, we're in our 70s.

And by the way, anybody who can't see me, I'm not in my 70s.

I don't know why, but there comes a point where due to compounding interest, if you're making 10% a year, 8% on $3 million, that may be higher than your salary ever was.

And then you have Social Security and everything coming in.

One of my core beliefs is that I believe how we handle our money should positively impact our lives and lives of those around us.

And I just don't think that as we get later on in life, that having our net worth continuously increase every year necessarily makes the lives around us better.

So give that some thought.

I've heard, I've heard David say that, quote, probably several dozen times in the many years that I've known him.

So that's not something he's saying off a whim just because you're on a podcast.

David has said that to us in private meetings and one on ones.

He said that big group settings that I've been in with him.

So this is not something he's taken lightly.

You truly.

And people hear 70 and they're maybe 48.

They're like, what in the world?

I don't wait that long.

But you can enjoy those fun vacations when you're young in your 50s when the kids are gone or think maybe things are cheaper because they have jobs, they're out, they're kind of pushed out a little bit.

They may be living with you, but it's not quite the same.

A lot of people feel guilty.

You should have a good consistent investment structure plan along with the financial plan.

We're big on preaching that for sure, but you should at least know what your investment plan is.

What's the plan for me to invest this year?

What does that look like?

And then outside of that, you should have freedom to go spend your money on things that are not detrimental to you.

I always tell people it's not my job to tell you how to spend your money.

It's my job to tell you if Starbucks is a detriment to your spending habits.

Right.

Or do your financial future.

That's it.

I'm not going to.

Can't do it.

I'll just.

So David, saying spend it so it positively impacts other people.

I've heard that for years and years.

Quick question.

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I want to talk a little bit about something else that I've been seeing lately and I'm helping people to get out of pre tax IRAs.

People that are in in 70s.

So talk to me a little bit about, first of all, what the heck is a Roth?

What the heck is a pre tax and what are the, what are the benefits of them on the way in and what are the benefits of them on the way out?

Yeah, the best way to think about everybody.

Here's the word Roth.

Now Roth is just a designation of post tax money basically.

Okay.

And I'll explain that in a second.

And then a traditional IRA or a 401k is the opposite of a Roth IRA or Roth 401k in the sense that money's put in pre tax.

That's the basic format.

Right?

So if you're going to put money in pre tax, you're reducing your total taxable income.

I make 100 grand a year, I put 10,000 in, I make 90 grand a year on paper.

The government then says, okay, you're taxed at 90,000 in income, not 100.

I make 100 grand a year, I'm taxed at it.

Whatever I have left over, let's call it 80, 80 grand.

Just making up numbers here.

I would then take 10 grand and put it in a Roth IRA.

The government says that's fine, you can do what you want.

You've already paid your tax on your hundred grand income.

That Roth IRA is post tax.

We won't ever tax it again.

So the pre tax money you put in at some point needs to be taxed and so it can grow to infinity.

But when you start pulling money out, whatever you pull out of a 401k or a traditional IRA to take and draw into your bank account as income, they're going to count that.

So if it's 10 grand a year or 100 grand a year out of that account, that's taxable in the pre tax example, in the Roth example, you've already paid tax on that money.

Then you put it in the Roth, whether a Roth 401K or Roth IRA.

And so when you pull money out of that again, it grows to infinity.

As much as you can make it worth by the time you need it.

Then you pull it out tax free again.

Could tax laws change in 20 years or 30 years or shorter than that?

Sure.

But for now, as of 20, 26, that's the law and that's how that works.

So what I'm seeing, David, to your point, I got a couple there in their late 60s, 68, 67, 68, 69, something like that.

I don't remember their exact age difference.

They're like a year or two apart, the husband and wife.

But they have four or five hundred grand in IRA money.

They've got three or four hundred grand in a brokerage account.

They've got a little bit of money in Roth.

And they said, hey, can we convert some of this?

We have a pension, we have Social Security, we have 25 grand extra every year.

We don't need to do anything with it from that income.

And that's an example where they just put it away because it made sense.

And that's what everybody did.

And they did well for themselves.

And it's the same story.

They were in the market in everything for a long time and it worked out, they made money.

But the point is There's a guy that's five years old and he has 500 grand in a 401k.

He rolled it over and then he had another 50 grand in a brokerage account.

By the time he's 60, yes, that money will hopefully have doubled or tripled, but depending on how you invest it.

But the challenge is if he wants to make a change, he's only got 120 grand to 150 grand available.

He doesn't fund it again that he can touch before he turns 59 and a half.

So we see two different spectrums.

Somebody who put it all there and it worked out and then other people.

What I'm seeing, David, is in the folks who are in our working years and our family formation years and high income years.

Maybe not the peak moment of high income years, but we're approaching it.

They're putting a lot of money into pre tax or Roths and then they can't use it for flexible sake.

So yes, that's how the Roth and the pre tax money and post tax money works.

Difference between the two.

But at the end of the day, there is a rhyme and a reason you put money in one or the other and there's a rhyme and a reason of where you should be placing money to solve what you want it to solve for.

So there's two ways.

I've seen it.

Some people who are overfunding early and I'm like, we got to shift that a little bit.

That's not making a huge difference.

Tax perspective.

And some people, once they get in retirement, that's all they did and it worked out well for them, but now they want to convert everything.

I don't want to pay tax when I'm 80.

Let's just go and start.

Yeah.

To me, the moral of the story is again, purposefulness.

Right.

When you're in your 20s and 30s, just automatically doing pre tax because it'll, quote, save you money now may not be the right thing to do either.

Having wise counsel and I don't know if you or I qualify as wise counsel, but we would be counsel or figuring it out yourself.

But I think a lot of times the default just doing it does not necessarily give the best result.

And let's take that 20 or 30 year old, let's say they build their account up to 2 or 3 million dollars and let's say now they're 70 and their spouse has passed away and now they pass away and they have kids, guess what?

Their kids have to take that money out and be taxed on it over 10 years that that potentially would be when their kids are at their highest earning years.

So a lot of different things to think about.

And again, I think it's important for us all to either know the rules or work with somebody who knows the rules.

I'm working with some older clients right now that have big pre tax account balances and we're systematically converting a portion of that to Roth every year.

Now that's creating a little bit of a tax burden because it creates phantom income.

But it's what needs to happen and everybody will be better off.

Better off for it.

Yeah, we talked a little bit David, pre recording today and it was when does it make sense to start shifting?

If you're going to pay tax on money and not put it in a pre tax account, then you can put it anywhere, right?

Put it into.

We're going to talk here in a minute about this property.

You could put it into a Roth, you could put it in a brokerage account.

Doesn't really matter it all but it all serves a purpose.

And so that's where you got to figure out what am I solving for?

And that tells me where to put it.

But if you're playing the tax game, then pre tax is your main focus.

And so for the folks who are in the 32% and up tax bracket, federal tax bracket, that that is going to really change where you should put your primary focus.

Meaning should you max out your 401k or should you just take the company match and then focus on a brokerage or a Roth?

And so for the guys and gals who are 20, you're not making max income.

You're in the 1512 range of what your income bracket is going to roughly look like.

And then you take out some deductions.

You should be getting the company match 3% and then you should be focusing on putting your money into, in my opinion, a brokerage account for the vast majority of those individuals because they're going to have a wedding or they're going to buy a car, they're going to have a kid and all those things cost money.

And you would rather have 25 grand in a brokerage account and 10 grand in a 401K or Roth, then the other way around, they don't have as much flexibility.

Once you kind of get through some of those hurdles, then start shifting some of your money back to a Roth.

And so you have three buckets pre tax Roth money which is post tax and then post tax brokerage which still gives you flexibility.

But you then Kind of refocus on building up retirement, and then those three buckets can grow in perpetuity.

It just depends on where you put your most efforts.

Right.

Take that thousand dollars a month and then just fluctuate it between the three buckets on what makes the most sense to put where for what purpose.

And that's something you just discussed briefly.

Before we started, and that makes a lot of sense.

And when people talk about diversification, I think what they typically are thinking about is not having, quote, all your eggs in one basket.

Don't buy all Microsoft or, all right, make a joke about SpaceX.

But anyway.

But there's also tax diversification, or I like to dumb it down and call it account type diversification.

I have a friend who had a boatload of money in a 401k.

Little bit of money outside the 401k came time where he could have bought his company While all that 401k money was pretty much tied up.

So whereas he could have potentially written a check to buy a company, he had to take out a loan because it would have been expensive to get out of the 401k.

So just know what the costs are of getting money out of each specific type of account.

And people say, is Roth or pre tax better?

Yes, they're both better.

You just.

If I ask you, Peyton, is a minivan or a pickup truck better for your family?

A minivan is because you have two kids.

But if I'm a house builder, I need a pickup truck to carry lumber.

So they're both good for the purpose that they can serve.

And I think that's the way I look at a lot of different financial tools.

So that's a great way to put it.

Yeah.

So you and I just happened last week to be at the same beach, and we got to hang out a little bit, and we were actually talking about investing in beach property and things like that.

So I wanted to do a little bit of dreaming for the people out there today and anybody who's ever thought about owning a beach house or vacation home or anything like that.

And I want to give you some methods of potentially funding a beach house or vacation house.

And I would like to tell for you to tell us kind of the positive and negatives.

So let me give you kind of a scenario.

Let's say I've built up a brokerage account.

So this is not an IRA.

And over the years, I've put $300,000 of my investments into that account, and it's grown to a million.

All right.

And now there's a million dollar beach house.

So if I just call my financial advisor and say, hey, send me a million dollars, I'm buying a beach house.

We're not accountants and everything else, but tell us kind of the basic tax consequences of the pros and cons of that scenario.

Cashing out the brokerage account, there's a $700,000 gain and you're going to basically now write a check to buy a beach house.

Yeah.

So there's always pros and cons of buying it all yourself, but then you're back to is it furnished?

Is that closing cost?

There's a lot of questions that go beyond that and that if somebody called me, that's what I'd be asking.

Great.

Million dollar beach home.

What else you got to pay for?

Does it need work?

Right.

Then it changes.

It changes the.

It's at the beach, it's going to rot.

There's seawater, hurricane.

So the point is, what's the purpose?

Are we going to rent it out?

What's the long term goal?

Is it a flip?

Is it.

Bunch of questions, but let's assume we write.

They want to just write the check.

Beyond those questions, I would say, okay, 700 grand, you're in two brackets.

Let's say all the gains are long term.

You've held them for longer than a year.

Okay.

At 300 grand has been to work for five years.

We haven't sold a position.

It's just growing and grown.

Then we would have a $700,000 tax base that we would be looking at.

So they would then say, okay, you're going to owe 15 or 20% depending on your income level on that 700 grand.

So you could owe.

So I really don't have a million dollars, do I?

You do, but you don't when you sell it.

Right.

So you're going to pay 140 grand up to.

Could be lower.

Right.

140 Grand on those.

On, on that 700 grand that they're going to.

The federal government's going to say, hey, you owe us some money on Good part is you don't pay any FICA or Social Security or anything that you would pay like your paycheck.

However, to go from a million dollars down to 860,000 is a big chunk if the house cost a million.

So for one, can't buy a million because you don't really truly have a million after tax.

And then two, we would be looking at options outside of that.

I don't know if you want me to go beyond that, but that would be my initial statement is great, tell me all these other things about it.

And then once I do that, I'd say, awesome.

You don't really have a million dollars because there's some taxes still though.

That's right.

My uncle wants some of it.

So let's say my primary home is worth $3 million and I owe $50,000 on it.

So there's a whole lot of equity.

What would your thoughts be on taking an equity line of credit against my home and using that money to buy a beach house?

Pros and cons, two things.

One, again, what's your income level, what your assets look like?

Is it's the only option.

And if it is the only option, then maybe it's not the smartest because you're now leveraging the place you sleep every night for the place you might sleep four times a year, right.

Or four weeks out of the year or whatever you amount of time you want to spend there.

And then if you want to rent it out, that's fine.

But then do you have the cash flow to sustain the attrition or the lack of renting, the vacancy rate that's going to come with that naturally.

And then where's your cash reserve?

I've had people do this and I say, look, if you had a million dollar portfolio and you have a $3 million home and you want to buy $1 million beach house, there's a level here where maybe that's not financially balanced and all the numbers, but if you want to do it, you need to spend some of the taxes and pay them and use them out of this account.

Write a small check from the HELOC on this account for things that you can get done and you can either pay yourself back or when the, maybe the HELOC is like the last line of defense.

So I would personally put the HELOC last option, but it's also a very risky thing to do.

It could work in the short term, but what if long term that million dollar HELOC is not being paid off like it was the first year?

Oh, the second year it changed or the hurricane hit the third year.

Right.

Let he lock still there.

So it's, there's risk involved.

But Yeah, I think HELOCs are great tools.

But I also one of the down parts of it is if you are ever in a position that you cannot make at least that minimum payment now they can take your primary home, which is not a good thing.

Now there's another tool that a lot of people don't understand that's out there.

There's something called a securities backed line of credit.

And for certain types of investment accounts you can literally a bank will lend you money and hold the account as collateral.

So I've seen people use that as well and they're maybe banking on that.

The interest rate on the loan is lower than how much the account is going to grow.

So I say this just to give people the opportunity to dream about a beach house and a vacation home.

But there are lots of different ways to work towards accomplishing your financial goals.

And that's your job.

That's my job is how are some of those methods?

And also to say, hey, here's the pros and cons of method B.

Here's the pros and cons of method A.

Which one of those makes sense to you, the client more?

Because I don't always know that.

There's.

There are some of my recommendations with clients where it's like, look dude, you need to do this.

This is like the only thing you need to do.

Then there's like others where it's like there's a bell curve.

This would be acceptable and this would be acceptable.

Anything in between would be acceptable.

So it may be partially a preference.

I kind of like the way you put that.

Acceptable on a bell curve.

The one thing I'll say is I am the aggregate for all financial information and I'm the filter in which I give you the options.

And so I just want to bring all this information, some which you'll never know because it's not worth you knowing or just some that's not pertinent to you, Mr. Investor, whatever the situation is.

But when it comes to it, that's exactly how we look at it.

This is acceptable.

I wouldn't recommend you necessarily do it, but you can do it as long as A, B, C happens before or after it.

You kind of preface it but securities line, securities back line of credit is great if you can use it.

I've got guys and gals who said, look, My business needs 200 grand.

The partners putting in 200 grand, we, I can, I don't want to sell them, pay tax.

I'm gonna, I'm gonna go ahead and take the loan out for 200 grand against my million dollar portfolio.

I'm gonna buy this asset.

Once it gets in the business, we'll underwrite that to the bank.

The bank will pay us back, the business will pay us back X plus interest and we'll make money personally.

But I'm going to cover all the percent okay with that.

The, the difference is when people start doing it on beach houses or some airbnb, if there's a lot more uncertainty there that you can't control.

I like it.

I think that's a really good way of looking at it.

I had a client who was just dead set on paying off his mortgage and it was a 3% interest rate mortgage.

And mathematically that's not the.

Probably the right move, but it was a preference and I can't argue with that preference.

I'd still rather you not have a mortgage and have a mortgage, but mathematically I could probably prove to him that he'd be better off.

But still, it's not something I could argue strongly against.

No, he'll sleep better night.

And that's the whole point, right?

That's the whole point.

So, yeah, so being the weekly wealth podcast, we talk about the mindsets, the tactics and the strategies that can help you to build wealth.

And yeah, so I would love to know, Peyton Hoppus, the second best financial advisor in the state of South Carolina, what is your definition of wealth for you and your family?

Yeah.

Sassed a group of people of that and they gave a bunch of answers and I said, folks, I'm just going to tell you what I think it is and I think it's time.

Wealth is not a dollar.

Wealth is the amount of time you can spend not working and that ultimately we would put that as a dollar amount to mean you can retire.

But point is, if I have to work 20 hours a week to make 100 grand, then you might be wealthier than the guy that has $3 million in the bank or in the investment accounts, but is working $600,000 job because he has to pay for everything.

So I would tell you wealth is much more about time spent elsewhere or time available to you than it is a dollar in the bank.

On the screen somewhere in your bank account.

Yep.

If somebody's listening and they're like, you know what this Peyton dude sounds like?

He just resonates with me.

He sounds like the guy that's.

That I like his philosophies.

How would they find you where they find you on the Internet?

Do you have a website, an email address?

What's the best.

What would be the best first step?

Absolutely.

We're working on our website, but you go to provestwealth.com and you can find information there and how to reach us.

If you want to reach out to me specifically, you can email me.

Peyton, P U I t o n@provestwealth.com and you can also check me out on LinkedIn.

I check that often.

Want to look for Peyton Hoppus on LinkedIn and I'll be glad to chat with you wherever you can reach out to me.

All right, everybody.

So I hope that you enjoyed this episode.

Give either one of us a call or an email if there are any financial questions that are keeping you up at night.

And until next episode, I wish everybody a blessed week.

Thanks, Peyton.

Thanks, David.

The information presented on this podcast is for general educational purposes only and does not constitute financial investment, legal or tax advice.

Parallel Financial is registered with the U.S. securities and Exchange Commission as a registered investment advisor.

Registration does not imply a certain level of skill or training, nor does it constitute an endorsement by the sec.

All investing involves risk, including the potential loss of principal.

Please consult a qualified financial professional before making any financial financial decisions.

And here is your bonus information for this episode.

People will say, well, like, why would you possibly invite another financial advisor to be on your podcast, right?

Aren't you competition?

Well, first of all, there's enough business for all of us.

And second of all, I think it's really important that when you work with a financial advisor, you find the one whose personality and philosophies align with yours.

So if Peyton Hoppes characteristics and philosophies aligned with yours, give them a call.

If mine do, give me a call.

There's enough for all of us, and we all just need to make the world a better place by how we handle our money.

All right, everybody have a great one.