WEBVTT NOTE This file was generated by Descript 00:00:20.347 --> 00:00:21.897 Riccardo Stewart: Hey, I want to welcome you guys back to another 00:00:21.907 --> 00:00:25.637 episode of the AWM NFL players podcast. 00:00:25.667 --> 00:00:29.347 My name is Ricardo Stewart and I had the opportunity to be your host and I'm 00:00:29.347 --> 00:00:31.547 joined with my friends and my coworkers. 00:00:31.547 --> 00:00:32.317 Let's start first. 00:00:32.317 --> 00:00:33.597 I got Sam Ocho. 00:00:33.627 --> 00:00:35.367 He's the mayor gets everybody's vote. 00:00:35.647 --> 00:00:36.527 We got Jeff Locke. 00:00:36.527 --> 00:00:39.757 He's a professor primarily because he educates and he drops knowledge. 00:00:40.032 --> 00:00:43.022 And then lastly, got Zach Miller, the truth, because everything 00:00:43.022 --> 00:00:45.642 he says, solid, solid, solid. 00:00:45.662 --> 00:00:48.982 And so guys, good to be back on the podcast. 00:00:48.982 --> 00:00:52.562 And, um, I know we got a chance to be with each other in the same room this 00:00:52.562 --> 00:00:55.802 past week, traveling, and now we'll get to talk about some of the things that. 00:00:56.247 --> 00:00:58.487 That, you know, questions that come up quite a bit. 00:00:58.807 --> 00:01:02.987 Um, it's always amazing to me that we work with NFL athletes who've made millions. 00:01:03.287 --> 00:01:06.937 And some of the questions that we may think are simple are the same 00:01:06.937 --> 00:01:08.107 questions that they're asking. 00:01:08.107 --> 00:01:11.797 And so for today's podcast episode, I really want to talk about investing. 00:01:12.307 --> 00:01:16.517 And I want to talk about investing from like a 30, 000 like feet. 00:01:16.567 --> 00:01:21.577 And what I mean by that is like everyone wants to see their money grow and 00:01:21.587 --> 00:01:26.707 people know that they go to an advisor to talk about investing, but many of 00:01:26.707 --> 00:01:33.447 them have no idea on what is it, like where do I go and then how do I invest? 00:01:33.447 --> 00:01:36.527 And not necessarily particulars, but just from a broad deal. 00:01:36.527 --> 00:01:38.447 And so I'll start us off first. 00:01:38.862 --> 00:01:41.652 I got this definition of, okay, what is investing? 00:01:42.182 --> 00:01:42.792 I'm going to read it here. 00:01:42.792 --> 00:01:47.182 It says the act of committing money or capital to an endeavor 00:01:47.472 --> 00:01:51.942 with the expectation of obtaining additional income or profit. 00:01:52.552 --> 00:01:55.902 And one of the things we say is it's not so much just about. 00:01:56.157 --> 00:02:00.407 The percentage or the return, but even more so what matters most 00:02:00.437 --> 00:02:04.257 is after tax dollars, meaning what happens once it's taxed. 00:02:04.257 --> 00:02:06.617 And so I'm going to step back and we're going to talk more about, 00:02:06.617 --> 00:02:10.097 okay, what does that look like from, from just a higher level? 00:02:10.107 --> 00:02:14.417 So I'm going to start first with you, Sam, how do I invest? 00:02:16.267 --> 00:02:18.797 Sam Acho: Well, so there's really two ways to invest, right? 00:02:18.797 --> 00:02:21.587 We're talking about this 30,000ft view of investing. 00:02:21.932 --> 00:02:24.992 One way is to own a piece of a company. 00:02:24.992 --> 00:02:26.002 It's called equity. 00:02:26.172 --> 00:02:29.612 So you could invest in a company like Apple, own Apple stock. 00:02:29.852 --> 00:02:34.402 And if the value of Apple, the company, Apple makes iPhones and MacBooks, if 00:02:34.402 --> 00:02:38.162 their value grows, well, all of a sudden, because you own a piece of their company. 00:02:38.332 --> 00:02:41.022 Well, now the money you invested grows as well. 00:02:41.022 --> 00:02:44.572 And so that's one way to invest equity ownership. 00:02:45.152 --> 00:02:46.472 There's another way to invest though. 00:02:46.472 --> 00:02:47.742 And that other way is called. 00:02:48.172 --> 00:02:51.842 Essentially it's like you, you, you, you lend money to companies, right? 00:02:51.842 --> 00:02:53.712 And so that's, people call them bonds. 00:02:53.712 --> 00:02:53.902 Okay. 00:02:53.902 --> 00:02:56.882 I'm going to, I'm going to lend money to the government. 00:02:56.882 --> 00:02:59.132 I'm going to lend money to my local municipality. 00:02:59.132 --> 00:03:02.162 I'm going to lend money and then they're going to pay me back. 00:03:02.162 --> 00:03:07.152 And so, no, I don't own any of, of, of that, of that money that I lent, but I'm 00:03:07.152 --> 00:03:08.742 going to get paid back with interest. 00:03:08.742 --> 00:03:14.122 And so the two simple ways to think about investing are one is equity, right? 00:03:14.172 --> 00:03:14.852 Ownership. 00:03:15.147 --> 00:03:16.507 Think about different companies. 00:03:16.517 --> 00:03:17.797 So I own a piece of a company. 00:03:18.247 --> 00:03:22.587 The other way is essentially you're lending your money to people, to 00:03:22.587 --> 00:03:24.147 companies, and then they pay you back. 00:03:24.942 --> 00:03:27.982 Riccardo Stewart: Like that I like that and I'm probably more likely to lend to 00:03:27.982 --> 00:03:30.772 the government because I know I've lent my money to some People before I don't 00:03:30.772 --> 00:03:36.152 trust them to pay me back So that's perfect that's good how Ownership and 00:03:36.162 --> 00:03:37.862 being able to lend stocks and bonds. 00:03:37.862 --> 00:03:39.022 Okay professor. 00:03:39.312 --> 00:03:43.742 Why don't you step back and um, okay I understand I can buy stock and have 00:03:43.772 --> 00:03:47.807 ownership I can buy bonds where I'm lending my money, particularly to a 00:03:47.817 --> 00:03:50.167 government or municipality, as Sam said. 00:03:50.757 --> 00:03:55.197 But like, where do I go to buy these investments? 00:03:56.412 --> 00:03:59.462 Jeff Locke: So the easiest way to think about it, 30, 000 feet is 00:03:59.462 --> 00:04:01.272 there's two places to buy, right? 00:04:01.272 --> 00:04:05.092 You've got the public markets and you've got the private markets when 00:04:05.092 --> 00:04:06.682 you want to buy public markets. 00:04:07.132 --> 00:04:08.262 Sam just talked about Apple. 00:04:08.382 --> 00:04:10.152 They're one of the biggest companies out there. 00:04:10.532 --> 00:04:11.492 At the moment, right? 00:04:11.492 --> 00:04:15.952 You can go on your computer, literally within like five minutes, you 00:04:15.952 --> 00:04:19.872 can make an account and you could actually go buy Apple stock, right? 00:04:19.922 --> 00:04:20.752 That's the public market. 00:04:20.892 --> 00:04:21.612 Easily accessible. 00:04:21.622 --> 00:04:22.822 Same thing with bonds. 00:04:23.182 --> 00:04:27.072 At one point, Apple used to issue bonds where they needed loans. 00:04:27.112 --> 00:04:30.612 You could buy their loans, give them money, and then they 00:04:30.612 --> 00:04:31.602 pay you back with interest. 00:04:31.612 --> 00:04:33.492 Again, you can go and do that on the public market. 00:04:34.042 --> 00:04:35.422 Then the private market. 00:04:35.762 --> 00:04:40.342 Think of when Apple was just coming out of their garage, right? 00:04:40.342 --> 00:04:41.912 If you all know the story, right? 00:04:41.912 --> 00:04:45.552 For a number of years before Apple became public and traded on the public 00:04:45.552 --> 00:04:47.742 market, they were on the private market. 00:04:47.982 --> 00:04:49.322 And the private market's different. 00:04:49.452 --> 00:04:52.702 You can't just log into an app or go on the computer. 00:04:53.072 --> 00:04:55.522 And buy those companies, you have to have access. 00:04:55.592 --> 00:04:59.902 The reason is they're more risky and they're younger companies, right? 00:04:59.902 --> 00:05:04.352 So public versus private is really the high level way to think about 00:05:04.352 --> 00:05:06.182 where to get these investments. 00:05:07.817 --> 00:05:08.357 Riccardo Stewart: It's perfect. 00:05:08.477 --> 00:05:09.077 All right. 00:05:09.217 --> 00:05:10.957 I know how, right. 00:05:11.187 --> 00:05:12.087 Stocks are bonds. 00:05:12.357 --> 00:05:17.657 I know where public or private Zach, tell me the truth. 00:05:18.037 --> 00:05:18.937 No pun intended. 00:05:21.012 --> 00:05:24.082 How do I, I mean, like, and since like, what, what do I even invest in? 00:05:25.367 --> 00:05:30.357 Zach Miller: Well, first and foremost for any athlete, invest in your human capital. 00:05:30.417 --> 00:05:31.507 We talk about it a lot. 00:05:32.357 --> 00:05:36.267 The most money you will ever make is going to be in your performance on 00:05:36.267 --> 00:05:37.937 that field, on the football field. 00:05:38.487 --> 00:05:40.757 You can generate way more returns. 00:05:40.757 --> 00:05:44.117 Like everyone wants to talk about returns and the stock market returns 00:05:44.177 --> 00:05:46.007 on, on those bonds we just talked about. 00:05:46.347 --> 00:05:48.717 But the return, the biggest return is going to be investing 00:05:48.727 --> 00:05:49.917 in your human capital. 00:05:50.167 --> 00:05:54.767 Specifically that physical capital, how good of a player can you be that short 00:05:54.767 --> 00:05:59.227 window that you have to play in the NFL and then you make that money, then you 00:05:59.227 --> 00:06:05.147 can look at, okay, I'm so concentrated in my own athletic, athletic ability 00:06:05.147 --> 00:06:06.307 and the ability to perform on the field. 00:06:06.507 --> 00:06:09.767 Let me be diversified when I go to a globally. 00:06:10.197 --> 00:06:14.577 Um, diversified mix of stocks, bonds across the whole globe in those, you 00:06:14.877 --> 00:06:18.087 know, thousands of companies that exist in the world, you know, the 00:06:18.607 --> 00:06:20.547 they're able to invest in the world. 00:06:20.857 --> 00:06:22.337 You can be diversified there. 00:06:22.527 --> 00:06:27.587 So spreading around essentially your investments is result in more money. 00:06:27.862 --> 00:06:33.232 And, um, a better outcome of kind of that risk, that risk of that personal to 00:06:33.232 --> 00:06:38.762 that diversified mix of public companies, private companies all across the globe. 00:06:39.282 --> 00:06:39.572 Riccardo Stewart: All right. 00:06:39.582 --> 00:06:42.512 So if I'm hearing you guys first and foremost, Sam, thank you. 00:06:42.562 --> 00:06:44.342 I can have ownership by stock. 00:06:44.562 --> 00:06:46.322 I can lend, get a bond. 00:06:46.692 --> 00:06:49.122 I need to go purchase these things in the public market where 00:06:49.162 --> 00:06:50.462 all the information is there. 00:06:50.692 --> 00:06:53.562 Or if I have the access, I can go to the private market, 00:06:53.572 --> 00:06:55.372 but a little bit more risky. 00:06:55.742 --> 00:06:58.682 And then if I am going to invest, Zach, I got to invest first in 00:06:58.682 --> 00:07:02.542 myself, my physical, intellectual, and social human capital. 00:07:03.287 --> 00:07:06.197 And then when I invest in the market, I want to make sure that I'm diversified 00:07:06.197 --> 00:07:07.557 is the word that you'll hear us use. 00:07:07.877 --> 00:07:10.467 So before we leave, I'm going to ask you guys a few things so you guys 00:07:10.467 --> 00:07:11.867 can drop a little bit more wisdom. 00:07:12.647 --> 00:07:16.737 Um, Jeff, what are two questions I should be asking myself before I begin investing? 00:07:16.737 --> 00:07:19.167 Jeff Locke: So the first question, we've talked about bonds and stocks, right? 00:07:19.197 --> 00:07:25.897 They're different is do I have enough in bonds before I invest in stocks, right? 00:07:25.897 --> 00:07:29.367 We'll talk about it in future episodes of like why that's so important is 00:07:29.387 --> 00:07:33.727 building what we call your safety before you start putting out your risk, right? 00:07:33.727 --> 00:07:36.077 So that's the first question, bonds before stocks. 00:07:36.077 --> 00:07:38.037 Do I have enough second is. 00:07:38.752 --> 00:07:43.122 Am I willing to let my stocks grow for decades, not years, not 00:07:43.122 --> 00:07:46.022 like five years, but decades. 00:07:46.182 --> 00:07:50.242 And that's what's required to actually get the returns that you want in the future. 00:07:50.612 --> 00:07:55.522 Riccardo Stewart: It's good, Zach, because you always talk about, you know, the 00:07:55.522 --> 00:07:58.682 superpower of investing is when you're young and starting when you're young. 00:07:59.077 --> 00:08:02.897 Why is it so important to begin investing as young as I possibly can? 00:08:03.947 --> 00:08:06.287 Zach Miller: Well, there's a lot of things you can't control in investing. 00:08:06.297 --> 00:08:11.667 Sometimes those market returns, the returns you get a lot of that, um, is left 00:08:11.677 --> 00:08:13.817 to some somewhat a little bit of chance. 00:08:13.837 --> 00:08:17.617 Whereas if you start earlier, your money gets to compound and the 00:08:17.617 --> 00:08:20.647 power of compounding is massive. 00:08:20.647 --> 00:08:22.147 When you start at 20. 00:08:22.442 --> 00:08:26.882 Versus then you start at 30, the amount of money that will grow and be able to 00:08:26.882 --> 00:08:29.272 compound for years and years and years. 00:08:29.492 --> 00:08:31.152 It truly is the superpower. 00:08:31.682 --> 00:08:35.562 Anytime you have the opportunity to invest early, you'll end up with way more 00:08:35.562 --> 00:08:37.512 money than if you invest later in life. 00:08:37.812 --> 00:08:41.522 And so getting started as quickly and early as possible, putting that money 00:08:41.522 --> 00:08:46.362 into things that grow makes, um, you know, something that could be a hundred thousand 00:08:46.412 --> 00:08:48.412 turn into millions that much quicker. 00:08:49.887 --> 00:08:51.607 Riccardo Stewart: All right, Mayor, I want you to wrap it up for us. 00:08:51.617 --> 00:08:55.287 Why is it important when thinking of my future self and 00:08:55.287 --> 00:08:57.357 my future family to invest? 00:08:59.147 --> 00:09:03.037 Sam Acho: The reason it's important, especially now, when you're young to 00:09:03.037 --> 00:09:05.927 invest is that the future you, right? 00:09:05.927 --> 00:09:11.467 Let's say you're 22, 21, 20, the 35 year old you is going to thank you 00:09:11.467 --> 00:09:15.327 for the, the investments that you made right now, meaning let's say 00:09:15.327 --> 00:09:18.637 you do play an illustrious career and let's say you do a good job. 00:09:18.827 --> 00:09:21.007 Well, fast forward, you may not be making that same income 00:09:21.007 --> 00:09:22.747 when you're 30 and 40 and 50. 00:09:22.957 --> 00:09:26.027 And if you invest in the right way, all of a sudden the decisions you made it, right? 00:09:26.042 --> 00:09:29.752 22, 25, maybe right now you are 35 and you're listening to this podcast. 00:09:30.152 --> 00:09:33.362 The decisions you make right now, all of a sudden, the, the, the, the 00:09:33.362 --> 00:09:36.052 future you will thank you because all of a sudden, let's say you're getting, 00:09:36.272 --> 00:09:39.212 uh, some of these interest payments back that you're not working for. 00:09:39.212 --> 00:09:41.462 Let's say you've invested into a company and all of a 00:09:41.462 --> 00:09:42.492 sudden that company is growing. 00:09:42.492 --> 00:09:44.092 They're paying you dividends. 00:09:44.092 --> 00:09:47.102 All of a sudden it's like, wow, this is positive rather than making some of the 00:09:47.102 --> 00:09:51.052 wrong decisions and saying, okay, I'm only going to invest in the private market. 00:09:51.052 --> 00:09:51.692 I'm going to risk. 00:09:51.692 --> 00:09:52.702 I'll do all this risk. 00:09:52.702 --> 00:09:54.052 I got a buddy who has this deal. 00:09:54.222 --> 00:09:55.142 I'm putting all my money there. 00:09:55.522 --> 00:09:56.822 That may not be the best decision. 00:09:57.492 --> 00:10:01.682 And so I think there's an idea of being prudent, being prudent and thinking about 00:10:01.682 --> 00:10:06.232 your future self and saying, okay, I'm going to invest now with wisdom and with 00:10:06.282 --> 00:10:11.322 tact so that in the future, I don't have to worry about where am I going to, how 00:10:11.322 --> 00:10:12.412 am I going to take care of my family? 00:10:12.522 --> 00:10:13.082 Put it that way. 00:10:14.207 --> 00:10:14.647 Riccardo Stewart: Love it. 00:10:14.917 --> 00:10:15.907 How do I invest? 00:10:16.057 --> 00:10:17.797 You invest into stocks and bonds. 00:10:18.067 --> 00:10:18.977 Where do I go? 00:10:19.317 --> 00:10:23.377 Well, you go to the public or the private and how into yourself first, 00:10:23.587 --> 00:10:25.577 and then globally diversified. 00:10:25.977 --> 00:10:28.807 Um, if you have any questions on what we've said, or you want more 00:10:28.807 --> 00:10:32.277 resources to learn more about investing, please reach out to us. 00:10:32.367 --> 00:10:37.592 You can send us a text at 6 0 2 9 8 9 5 0 2 2. 00:10:46.591 --> 00:10:49.481 I don't know why I'm doing this.