Dentists Who Invest

Podcast Episode

Full Transcript

James: Hey everyone. Welcome back to the Dentist Who Invest channel where myself and Rohit returning face on the group. Are here to discuss how to recession proof you’re investing portfolio or do you even need to recession proof you’re investing portfolio as we commonly, we kind of circle back to that theme, don’t we on these conversations, don’t we?

Ro hit because it’s actually based on how your portfolio was set up in the first place. But of course, I’m not going to adopt too many spoil. Because we will reveal all during the course of this conversation. Rohit. How are you today, my friends? 

Rohit: I’m very well. How about you, James? Friday evening.

James: Friday evening. Getting those Friday feels my friend. Well, I say that actually, but I’ve got a busy weekend of zooms and things ahead. And looking forward to it and looking forward to a conversation. because I always learn something. I love doing these and money is so fascinating and the thing about it is it’s not just to have loads of cash so we can be like, Yeah, look at us.

It’s basically because it’s a tool to buy back of freedom. How do we ensure that we grow ours and protect ours as much as we can? That’s the mindset flip with investing. It’s actually a defensive thing before it’s an offensive thing. 

Rohit: Absolutely. It’s about taking control of your time, taking control of your life, and letting the investments you make to all the hard work.

And that requires patience. It requires discipline, but it requires the most important thing. Knowledge. 

James: I heard it broken Dawn really nicely recently. So think about it like this. We have all these different assets, and each one of them has different properties. But we tend to think, we tend to view cash as the only asset.

Rohit: Cash is king. 

James: cash is king. Everybody thinks cash is king, but do the properties of cash actually service based on the goals and objectives we’re trying to achieve right now? Fair enough. If your goals and objectives are whatever comes into your bank account, you want to spend it very quickly. I don’t know.

because that’s how you live your life. It’s advisable to talk some away for your investment portfolio, of course. But if you need money, if you need your wealth very quickly in the short term, Then cash is king, maybe one to two years. Otherwise, investment it in the market is, well, volatility comes into play.

But the thing about it is actually the majority of your time, you don’t need your cash to do that. You don’t need it over that timeframe. So is there an asset that actually better serves your objectives and purposes that you’re unaware of? And if your objective is long term growth of your wealth, actually there’s probably an asset out there that is more aligned with that purpose that you can take your cash and transform it into, and then transform it back when you need it.

Basically, it’s just a way of looking at investing. It’s just a way of looking at the markets. Does that asset in which you hold your wealth actually serve the purpose or objective that you’re trying to achieve? And it just broke it down really nicely for me. I really like that. Anyway, we’re not going to digress.

Too much Rohit. We’re here today to talk about recession proof from your portfolio. There’ll be a lot of people out there who are thinking of your thinking to themselves, Recession. What the heck is that? Why do I need to think about. Right here, right now. Maybe it might be nice to do a little bit of a breakdown on what you currently see in the market in days.

Rohit: Absolutely. So let’s start by defining that term recession, which is being banded about these days. So a recession is two conservative quarters of negative growth as in falling gdp. So the economy is not actually growing, its falling to conservative quarters. So, the UK is shortly expected to get there.

A lot of other major economies in the world get there. And, you tend to think of doom and blue, don’t you? That’s what the news makers, would like to make you think everything is going to come crashing and burning down. But actually when you look beneath the surface, there are always new shoots, green shoots, and we call this period, season investors and investment manager.

We call this a period of opportunity where the success stories of the next pro cycle being born. So I thought it’ll be really good to reflect on some of the things that are happening these days and really find, fine tune our understanding of what they mean for us, our finances, and where are the shoes or the windows of opportunity that might be lurking around.

James: Another saying that I love a declining in price market is actually an increasing in value market. That’s it. And increasing in price market is actually a decreasing in value market because the amount of money you exchange per unit goes up. The unit remains the same. The unit being whatever asset, whatever fund that you’re buying.

Granted of course that you’re investing in suitably long term things, that logic would apply and that’s how we should be looking at things. But what do people do? What do most people do? When we’re investing, we let our emotions. Determine what we do. We let our emotions lead from the front. We get way too giddy when it’s going up and we get way too upset going down.

We get way too ful. We’re fearful we begin to sell. But actually, if you can actually fine tune your brain to pretty much do the opposite, you’ve got a huge advantage. Easier said than done, but we’re going to cover that. 

Rohit: Yes, we will cover that and link it with current events. So let’s just circle around the world and see what’s happening.

 Let’s start with the biggest economy in the world, the United States. they say that when the states catches a cold, sorry, when the states knees, the rest of the world catches a cold, I should say. So that’s what seems to be happening. There are some interesting news emerging from what the Federal Reserve is doing, for example.

So they have, stuck to increasing interest rates, but they have also said that the interest rate rises needed in the future, may not be as high to tame inflation because inflation seems to be showing signs of slowing down, which is quite interesting. So, the reaction of markets today over there has been relatively muted.

However, We think that this could just mark the beginning of a change in the negative sentiment over there. Employment has held up, and that is a really good sign over there, as in the UK. So employment is holding up, wage increases are happening, although they can’t happen at the same rate that inflation is at the moment.

So there are sort of some confident stories emerging there. A lot of the. Names on the s and p 500 and the New York Stock Exchange seem to be still making profits. Their share prices have tumbled. So stock markets have tumbled between 15 and 20%. They’ve had a little bit of a recovery over there more recently but still what you.

Alluded to in the beginning, seems to be holding through that this is the time to grab a bargain in the world’s biggest economy. So that’s what we are reading over there. Of course they don’t rely in the same way on gas from Russia as the Europeans do. So flying over the pond into Europe now they’re in real trouble aren’t day with Germany, the engine of the European ship as it were real thinking.

What are they going to do come winter? So they’re trying to say to people, Cut down on your energy usage or Right. For individuals, but what do you do about energy intensive businesses? I mean, Germany has a significantly large proportion of businesses which are industrial production based, energy intensive.

 So they’re trying to tackle that problem. Energy is the answer, but that’s a long term thing. So it remains to be seen what shape Eurozone exit being in. But there things are not looking as great. Then coming to home, coming to the UK. So the UK has a couple of interesting dates to look out in September on the fifth, we are going to know who is going to be our new Prime Minister.

So whether you are in the trust camp or you are in the camp, or like me, you are in the Ku Ks camp. You got know the result on the 5th of September. Which camp are you in, James, by the way? I wonder.

James: I like Richy Sak more from the point of view that I feel like he gets the economy more and he’s more willing to not appe, go all out to appease voters and have Luke monetary policy and maybe be a bit stringent when he has to be.

And he’s not afraid to do the right thing, but not always the popular thing. Whereas I feel like slightly Liz Trust is attempting to appease voters by having loose monetary policy, which I don’t know if that’s the right move right now, but of course, listen, that’s my very cursory, high level understanding of it, and by no means of I nailing my flag.

So I like to stay, I like to steer, give politics a wide birth on Dentist Who Invest caveat would’ve just said with that right there. 

Rohit: Very often as economists are economically minded, people don’t care as much about politics, but if politics mattered, At any particular time. It is now more than any other time in the recent past maybe during Covid Day, but now it really matters.

What policies will the new Prime Minister place you? Energy bills, they are the real issue at the moment. So we know that the energy price cap has been announced. 3,500 plus in October and then goes to 5,000 pounds is the expectation in January increasing to an eye watering 6,000 pounds in March.

And that’s really going to put a lot of people in fuel poverty. It’s going to affect a lot of small businesses, which could frankly go under. So these are real challenges which have to be tackled by the incoming Prime Minister and the new administration. Right now, it doesn’t really help. The government is in a bit of a limbo state.

We hear that a certain Mr. Johnson is away holidaying, which is interesting amongst all this turmoil, but he’s like, How couldn’t care less. I’ve been booted out. So that’s where we are. But then the other interesting development is what view is the back of England going to take with all this? In the middle of September, I think it’s on the 15th, we have the next meeting of the Bank of England monetary policy committee where they’re going to decide how much do the interest rates go up by.

Analysts are predicting anywhere from half a percent to higher. Some are predicting lower, but overall inflation is going to be increasing a lot more here in the UK than it’s going to be say in the US. Because whilst we don’t really take much gas from Russia the price at which we imported is affected by the wholesale prices.

So as much as we like to think that Brexit means we are not affected by Europe vr which kind of brings into question the whole logic behind Brexit. Let’s not get into that. The headline in the UK is going to be rising inflation which is going to undermine the pound. So the outlook for the pound is not very good in terms of its value.

Basically the dollar or the euro and the economic outlook is also not that great. At the moment, however, and there’s always a, however, the Foote, the index in the UK is predominantly a value index. So you’ve got real well weathers there such as mining companies such as energy companies who have made enormous profits.

So this goes back to what I was pointing about James, and you were alluding to that there are always pearls of opportunity in this a of what we call a recessionary environment, so Shell bp, they’ve had record profits mining companies, clean and energy companies they are going to be massively profitable going forward because that’s the real answer, isn’t it, to our energy goals.

We’ve covered the developed world. Now it’s very interesting to see what’s happening in the biggest sort of part of the so-called emerging markets, and that’s China, the dragon as we call it. So China has not had it so good has it in the last few months with what’s been going around there.

So right from their zero covid policy to more recently their real estate trouble. So what has gone on there is ever grand and a lot of other real estate companies have taken money from potential buyers who jumped onto this pan bag of home ownership. It’s not unfamiliar to us in the UK everybody wants to own their home.

Similarly, they put their money, they got mortgages, but these developers didn’t actually build anything. So we are in a strange situation where people are being asked to pay money on their mortgages. They haven’t got their homes, which were promised to them. So it threatened to put a lot of real estate companies over the edge into administration.

But now that’s the good news. The Chinese government has stepped in. It said it’s going to lower interest rates on the mortgage. The reference rates, and it’s also giving these developers financing to help complete these projects. So that’s a big board of confidence in this sector, and it’s likely to allay concerns of investors.

The other positive development ch in China is related to a lot of companies Chinese companies, which operated in the US companies like Alibaba that we all know of Germany. So there. A big dispute going on between the states and the red drag of the China about auditing these companies and how transparent their finances were.

So this had gone on for months, maybe years, but now thankfully they’ve come to an agreement that these papers will be brought to Hong Kong and US audits will be able to look at these companies and then that will ease their financing strategies. Far as the US is concerned. So some good positive developments there.

If we look at the other big sort of component of emerging markets, India continues to be very robust. It’s not affected in the same way as the west by the energy votes. Doesn’t get as cold there. So not as much reliance on gas for heating. And then they are continuing to import petroleum from Russia and the Middle East so that we call it the more phenomena the Prime minister there is doing a really good job.

So we. India is continuing to grow and it will continue to grow. So it’s going to be really the driver of global growth going forward. So these are the windows of opportunity as we see it at the moment, the US, which seems to be holding up. And emerging markets and companies in the UK, Europe.

So really what I wanted to conclude this update the first part anyway, is saying that there are windows of opportunity. And if you look at a hundred thirties of stock market history, then the asset class that has exceeded everything else, the type of investment that’s given better returns than property, than bonds, certainly better than cash, is your good old equity is the great companies of the world.

Who exist to make profits. And they do that by building great products, great services. This sort of time is exactly when their great minds are, sat there innovating, trying to figure out how to survive this difficult period. No doubt there will be some failures. And that’s what we call survival fit is the dban.

Phenomena its best and the next success stories which we will identify. And that’s the idea of investment research will be the drivers of growth when it comes. Will I know when it comes? Can I say that right now? No, I can’t. Whether it’ll be six months, one year, two years. History tells us that this sort of phases, recessionary phases last for about anywhere from six months to two years.

So if we see Covid that was shorts up, we shaped correct. If we say 2008, it took a little bit longer. So we call it a U-shaped recovery or a long U. But then what always follows is a period of rising markets. And unless this is a dire, is a very different period. We have a nuclear war put, decides to go crazy than it could be different.

But jokes apart, there’s always a recovery. This is the time guys to really start thinking, have I got that spare capital? Have I got capital, which I can put away for more than five years? Take this opportunity. It is really an opportunity of a lifetime to grab bargain game, get into good investments and let the markets do their job in the long term, which is grow your wealth ahead of long term inflation really. So I’m sure James, you will have a lot of questions coming on the back of what we’ve talked about. So rent, fire away. 

James: Yes. I’m sure there’ll be some questions that coming in on the chat. Absolutely. Just to add to what you were saying so I was reading something interesting the other day that think about it like this so if we think about these major index as, as basically there is a tangent, there’s an average value at which they. Increases over time, the valuation of the index and it increases. The volatility is how much it fluctuates around the mean. 

Rohit: That’s right. 

James: And a function of volatility or one way of measuring the value of a company versus how much it’s returning is its PE ratio.

So some cover B somewhere has done a study on PE ratios versus success of your retirement. There’s no surprises for guessing right now. somebody’s calculated that the PE ratio of the s and p 500, the average one, Or the average PE ratio is 19, something like that.

These figures, I read this like three weeks ago. So the figures are a little list, but they’re along these lines, so if the average is 19 and we know that when it’s overvalued, it’s going to revert to the mean at some point, probably sooner rather than later somebody calculated that.

Basically when we apply the rule of 4%, where you basically use this rule of thumb to decide how much you can safely withdraw from your portfolio, it applies, and I believe the original study for the rule of 4% was 30 years. Okay. 30 years of safe withdrawals at the rate of 4% of the year per year.

How many portfolios survive under those conditions? As in how many people don’t run out of money? And basically, If you take that and you overlay over PE ratios, the only portfolios that run out of money after 30 years, the likelihood of that happening increases so much more when your retirement.

Starts on the day that a PE ratio is way, way, way above average, so we’re talking like 27. Then apparently in that instance, 25% of retirement portfolios feel when you use the rule of 4% over 30 years, go all the way behind a PE ratio of like 10, and every single one of them survives. And if anything, you’ve got another few decades afterwards.

So really be super excited. If your retirement starts, whenever the market is low, is at a lower value, because chances are that the market’s going to be rising at the same rate as you’re withdrawing capital effectively offsetting it is really interesting. And this was a survey that someone conducted.

So anyway, what does that mean for anybody investing at the minute? Apparently the current p I looked this up the other day cause I was curious. How current conditions compare to those stats current PE ratio is 19. So it’s basically the market is accurately valued does that mean it’s going to go up?

Does that mean it’s going to go down in the short term? No one knows, but recently, it’s been overvalued. So it comes back to what we were saying just a minute ago, if we’re going to look at that metric when everybody was getting giddy a few months ago. Surely by that logic, we should be getting even more giddy now.

Maybe and when he will go down further, that’s when we get really, really, really excited. But anyway, it’s just an interesting one. That was from a book I’m just looking over my shoulder on a bookshelf which is called How Much Money do I Need to Retire? Lots of interest and fact toys for any financial boss site there who really love diving into stats.

That is the book for you because I found it absolutely ridden. 

Rohit: Fantastic. 

James: Recommend that. Good. Recommend that. Good. And I realize that’s probably going to be maybe over a few people’s heads. Maybe that’s a podcast for another day. because it’ll take it a little while. It take a little while to explain what those are.

But for the finance bus in the audience, you’ll know what I mean. 

Rohit: Totally. and this is it. A lot of people who are more into trading into short term profiteering and so on, they tend to want to time the market. And what’s the right time to buy something and to sell it and make an optimal profit.

That reality is that if anybody does it properly, then it makes, they just got lucky because no one can really time the markets. It’s about staying invested and keep doing the same old fundamental things, which we have control over. Control The controllables is what I say. Make sure that if you have disposable income, you are doing regular investing now.

If you’re operating through a limited company structure and make sure that you’re optimizing what you can draw, what you can invest through your company make sure that you’re using as far as possible. Your allowances. 20,000 pounds a year is very generous, and that’s tax free returns forever.

Make sure that you’re optimizing your pensions. Think about. If it’s matched to your risk profile, think of early stage companies, Venture capital trust, where you’re investing in the zup plus the kazoos of the future Companies that are one to 3 million pounds in valuation now, very successful and they’re going to be the big success stories redefine our world.

You’re also doing good for the world by investing in these companies. So get to know all this educate yourself. Talk to special. Like us advisors. And that is the real investment you can make in building your future. Do not let yourself be swayed by short term fears and what you’ve seen.

The news, because as I said before, it’s news is negative events, world service, negative news cells positive news. People look at it and say, Oh, good. Does that really make for that sensation? No. That’s the reality, human psychology. 

James: 100%. And another thing I heard recently as well, it was talking about businesses and just another vantage point through which to regard them.

Basically, these things are live and breathing entities, and for anybody who runs a business, how many flipping decisions do you have to make on a daily basis? You don’t really actually ever get a day off. It’s like an organism that you have to constantly maintain. You have to constantly pay attention to it in order to tweak it, to ensure it’s survival.

It’s like how you eat, how you feed yourself, how you sustain yourself as a human being, as an individual, that’s effectively what a business is as well. So when we come to inflation and things like that, it’s very, because these things are so dynamic and the these people are the like the fact that they’ve got these bus businesses to these positions in the first place, they’re not just going to roll over and take it, you know?

They’re going to adapt, they’re going to change. And that’s why that asset class consists in the audit performs because you’re basically buying a little bit of the brain power of the smartest people in the world. Think about it in your dental practice, right? You know, people want to invest in their dental practice or invest the excess cash of your dental practice throws off.

Here’s the beautiful thing about a business on a dental practice. That is one of the most inflation proof things there can ever be, right? because you can just, when the prices, when inflation goes up, you put your prices up to match it, you can account for it. You add more value to what you give to your patients.

You can make more money and increase the price of what you charge. Therefore your wealth effectively, your ability to generate wealth out. This inflation’s just an interesting way of looking at it. That’s the beauty of having a business. You can tweak a few. And then what it means is you can get ahead of the game, but of course it all comes down to your model, how much you charge.

And already there’s various other factors in there. And I am making this sound dreadfully simple, but it’s just another perspective or way of looking at it. That’s interesting. I feel. 

Rohit: And that’s what businesses do, James. So if we talk about, let’s take an example of Amazon, right? So Amazon makes most of its money not from prime or deliveries.

It makes most of its money from cloud services, which are bought by some of the biggest businesses that there are in this world. Now it’s an incredibly sticky service because for them to switch all their storage from. Amazon to Microsoft or somebody else. Google. It’s very difficult. And they obviously can put their prices up as inflation goes up and their clients have to accept it or they do tend to accept it.

So this is where we are talking about parallels. The big difference, James, is by investing in these companies, you are letting. The people, the smart people in those companies do all the hard work for you. And that’s where in lies the idea of financial freedom. So yes, you’re working as a dentist right now, maybe as an associate thinking one day you’ll have a practice or a practice principle right now working really hard to build value in your practice.

And one fine day you got to sell it. And that’s the question. Then you’ve sold it, you’ve got the sum of money, and if that money’s then not working. Then it lose its value. So what do you do with it? You don’t want to run a practice for the rest of your lives. So you let bright people running these bright businesses across the world draw this money for you by running whatever businesses they’re running.

So then in lies, the parallel you. 

James: absolutely. 100%. That’s another vantage point or perspective of way I looking at it. And really interestingly you tend to find, broadly speaking, there’s two pathways to wealth, right? So you’ve got the steady Eddie ease over here on the right hand side.

They familiarize themselves with long term investing techniques and how to grow their money in the market. So they’ve perhaps got a job or maybe they’re self-employed or something like, They earn money through their job, they take out a certain amount to sustain themselves. There’s a certain amount of abundance and part of that goes into the market and it’s like building a house.

Brick by brick, by brick, they build their wealth. They work as employees. They do that for a fair portion of their life, and then one day they reach retirement age where effectively their assets are at the point where they can sustain them. Until they’re no longer on this earth until they pass away that.

The conventional model of retiring. The downside to that model is it takes a few decades to get there because if we could say we could be rich tomorrow, someone would say yes. Yes. Straight away like that, but if we use that method, don’t get me wrong, we should 100% do that.

That would be the downside. But having said that, it’s a realistic way and it’s a very tried and tested, proven way of attn in wealth, that’s method number one, method number two. Is the business owner? No, I’m totally generalizing here. There’s obviously more ways within those, but broadly speaking, from a very high level, you’ve got the business owner.

Now, the business owner, they tend to be so absorbed in their business that any profit that they make goes back into the business. They never actually really familiarize themselves with how to invest in assets. The business grows and grows and grows and grows. One day they exit the business because the exit always comes.

There’s four ways you can exit a business, you can either walk on it where you just do this with your hands. I’ve had enough. I don’t care. I don’t wanna say ever again. I don’t care how much it’s worth. See a later Here’s the deeds. You have them. Something like that, right? You walk on, you sell it.

 Where you sell the business itself, you can get, if it’s a big public company, you can get push start. Like what happened to Elon Musk and Steve Jobs doesn’t really happen in central practice because they’re not public. Or the worst one. Number four, you get carried on . You get carried on. for sure.

 A stretcher or a coffin, or something like that. But anyway, we don’t need to talk about that one. So basically by default, we either walk out if we don’t think about selling out at some point, one of the other three ones happened to. Which is an interest way of looking at it.

It’s not like we’re coming at it from this totally abstract new angle, but perhaps people have just never had it broken down like that before. I have a little bit more to add on top of that, but do you find that interesting? Had you heard that before? 

Rohit: Very much so, because it’s human nature.

I come across it every day in my job as a financial planner because it’s human nature to think about the here and now, the challenges, which. There today or maybe the next week, next month. Most people don’t think beyond that. Most people have a weak idea of retiring at say, 60 or 65 but they haven’t really thought about what they want to do at what stage is their hard stop.

Does it look like retirement, where they face it over a period of time? Or is it going to be that they stop working? And before that, what are the financial priorities? Do you intend to pay off your mortgage entirely? Are you going live in the same house? Do you have children? If so, are you going to want to pay for their education, they lifestyle?

All of these questions bring financial challenges and. The ability to take control depends a lot on having a costed plan. This is what we call at s Bridge, a Lifetime Cash Flow Master plan. So we put all of these goals that you’ve got weekly in your head in precise sort of time and money parameters.

So there’s a saying, isn’t it, that you need to have smart goals, smart. Goals, meaning specific, measurable, timely all of these things are really important. So we break goals down into those parameters and that reflects in the form of a nice visual chart where you know that where you are heading and what you need to get there.

So your existing assets will get you up to certain point. So saying you will run off money at 70 or 75 and you’ve got 10 more years. To invest and close that gap using the 4% rule or whatever rule, depending on how long you’re gonna live, right? So if you are, say, gonna retire at 60 and you expect to live 200, then that 4% rule is not applicable because it could exceed.

So it’s specific to you what rate of return you require. Based on that, how much should we investing? And that is a very relieving feeling. It puts you in a very confident position by knowing exactly the date you can retire. And then nothing is constant in life. The plan isn’t constant. So regular check-ins once every six months, once every year.

And this is something which you can do working with the financial coach or a planner, or you can actually do yourself by educating, or it could be a combination because education is key. And if you can have that, then you are in control of your outcomes in future. Otherwise, you’re just fretting down a path where you’re leaving into chance, isn’t it?

Which could be one of the less desirable outcomes that you outlined. 

James: 100%. And the final thing I was gonna say on those two methods or pathways to wealth, is you often find that pathway number one, Has never heard of pathway number two, or is it maybe only vaguely aware of it or has no real idea of how it works, and pathway number two.

As in the business owners, they have no idea about pathway number one, because they’re so focused on what they need to do to make their business work. There’s 168 hours in a week and a business can take 169 hours. It can take as much as you want be with me, and sometimes when you’re in the picture, you can’t see the frame and basically if one is red and one is blue

like most things in life, the answer is actually purple. And when it comes to the end where you have this business and all of a sudden you have to invest it all at once, you have to invest your capital generated from the business, from your selling eye point all at once. It becomes that much more expensive to you.

And also they see the opportunity cost of not knowing about method number one the whole time because your spare capital could have been appreciated and you could have diversified all of your business a long time ago. And just like what we were saying earlier, tax free, tax free. If it’s in an, if it’s in a pension, well we get taxed in the way out on a pension, but it’s tax free on the way in.

There’s basically tax mitigation methods that we could be capitalizing on that we 

Rohit: There’s offshore bonds where you can get 5% of your capital tax free for a very long time. So there are lots of vehicles. A lot of people, most people know about pensions, but they may not know. Stocks and s ISIS or v cts or offshore bonds.

So it’s about expanding your knowledge and using all of these tools that the government gives you really. And when it comes to passing on wealth I know we are going to perhaps do this in more detail, but that’s equally important in this country, if you have wealth exceeding, say, 325,000, Or 500,000.

If you’re passing to your children for a single person, you get taxed at 40%. That could be a lot of money. So say somebody sells their practice for, a couple of million pounds and that is over their threshold, 40% of that 800,000 could be gone in tax. That’s a lot of money which could have been saved for the future generation.

So that’s why tax planning is, you know, control the controllables, reduce your tax burden in your lifetime, reduce it then it passes on to next generation. Secure your future. Make sure that you’ve got control over eventualities like death or illness. You’ve got the right sort of insurance, your mortgage optimized, and that’s what are the financial levers that if you are in control of.

Then you can have a high degree of confidence, but more important than all of this is your emotions. Because we as humans are emotional beings. And these emotions sometimes can be really helpful in terms of innovation or coming up in new ideas. That excitement that, you know, growing the business is connected to emotions, but it can also be negative or counterproductive.

So, if. You fear that your investments are going to fall and you cash them in at the wrong time in this sort of time. That’s it. You’ve crystallized your loss. Or if you go into retirement without knowing that you will be all right, you could be forced to work in later life because there isn’t enough left in the part.

So that’s why it’s important to balance your emotion and nationality. And that’s where an objective conversation. Advisor colleague or James from dentists who invest, you know, reading all the wonderful stuff that you can have in this treasure tro of knowledge or all of these things build to that goal.

It just puts you in the driving stage in control. 

James: Tough stuff. And again, another thing that someone said to me the other day and begin to sign a broken record, Someone I heard someone say if we don’t plan for a succession or a. We love the tax man more than we love our own kids.

And I was like, No, no, no, no, no, no, no. I’m not letting that happen. I’m not letting that happen by default Rohit. We’re coming up to the 40 minute mark. We’re going to close proceedings very shortly. Anything you’d like to say in conclusion to anybody who’s listening and watching today? 

Rohit: So market cycles come and go.

Investments rise and fall in the short term. The important message is to stay focused, to have a plan to seek advice if necessary, but most importantly, be in control of your emotions, of your destiny, and of your outcomes. That’s going to be my key message.

James: I like that. That was punchy. That was punchy right there. Rohit, you’ve been super generous with your time. Hope you have a smashing weekend. My friend will catch up soon. 

Rohit: Thank you. See you soon, James. Have a good one.