Life22

Kenny Polcari: Says it's being recorded.

Kevin Dougherty: Perfect.

Kevin Dougherty: All right. Gang, Kevin. Here life 22. And today we have my friend Kenny Paul Carey from Slatestone. Capital.

Kenny Polcari: Plates, own wealth.

Kevin Dougherty: So it's own wealth.

Kevin Dougherty: And, Kenny, how how many years have you were you on on Wall Street?

Kenny Polcari: Well, I'm still really on Wall Street, but physically, at 11 Wall Street I was there for 40 years.

Kevin Dougherty: Okay.

Kenny Polcari: I was as a member of the New York Stock Exchange, running around, screaming and yelling. I was one of those guys that used to see on TV, you know, in the middle of those crowds.

Kevin Dougherty: Right? Okay?

Kevin Dougherty: And so and now you've you've got you've I found you via, I think I 1st listened to you on the morning wire.

Kevin Dougherty: Yeah, from the daily way.

Kevin Dougherty: Yeah. And then and then I found you on Twitter. And that's how we kind of kicked up our our friendship. And then,

Kevin Dougherty: just a wealth of information. And now you've got your sub stack. You do your morning your morning excerpts.

Kenny Polcari: Yeah, I write the daily morning blog, which I then turn into a video. So if people don't want to read it or they're driving in the car. They can listen to me, and that goes out on my Youtube. It also, it gets published to my Twitter and my Linkedin, and all that stuff as well.

Kevin Dougherty: Okay and and then. Now, most recently, Yahoo finances picked you up and you've got your.

Kenny Polcari: I've got a I've got a podcast. Called Trader Talk that launched on Yahoo finance at the end of January. It drops once a week on Wednesdays. So right now, I guess there's about 8 or 9 of them that have dropped, but I actually think that might that might grow. I think I might do it more often than once a week, because they're they're happy with it, and I enjoy doing it. So we'll see how that goes. But currently, right now it's called Trader Talk on the Yahoo Finance Channel. You can also find that I mean I'll repost it on my on my twitter as well.

Kenny Polcari: But you'll find it. Yeah, you just Google it, and you'll find it.

Kevin Dougherty: Right? Right? Yeah, I usually just kind of track you on substack. And that's how I catch up on your morning stuff.

Kevin Dougherty: I'm.

Kenny Polcari: Yeah, and that the Yahoo podcast also goes out across, you know, across all those channels, apple and spotify and everywhere else, where you're gonna find the podcast.

Kevin Dougherty: Right? Right? Okay, cool. And then I was gonna say, yeah, and that I was, gonna say, one of the things that like my wife when I talk. I was like, I got Kenny coming on today, and she goes, who's that? And I'm like, it's the guy who talks about finance. And then he always gives us a recipe. So the end of every one of your excerpts. You give us a beautiful recipe for what's for dinner. So I always think that's it's a very.

Kenny Polcari: Yeah, you know. And that was actually by mistake, the way that happened because I started writing my blog and my thoughts when I was on the floor in the middle of the great financial crisis in 2012, and I used to just drop my my thoughts down because it was cathartic for me as I was going, as we were going through that that crisis being on the floor of the Exchange and the and the

Kenny Polcari: you know the the way it felt right, as the world was crashing. And so I started writing that blog as a way to help me, and I used to send my thoughts to all my clients, only went to my clients and my clients. Remember, on the floor as a broker I was an institutional broker, so my clients, weren't you? And you know Joe Q. Public. They were mutual funds, like fidelity or capital research, or Wellington capital in Boston or

Kenny Polcari: hedge funds around the world. They were institutional clients that were clients of mine.

Kenny Polcari: and so I used to send this to my clients, and then this one Monday morning I get up after a

Kenny Polcari: the week before, had been a horrendous week in the European markets, and European banks were getting absolutely slaughtered, and I went home on Friday night, and I said to my wife, we were empty nesters at the time. Both our kids were away at college, and

Kenny Polcari: I went around and I pulled down all the shades on the 1st floor of the house, and I took the phone off the hook when you actually had a phone in your house, and I just said to her, I don't want to talk to anybody all weekend. I just wanted to go upstairs, take a shower, put on my pajamas come down, light a fire, and you know, cuddle on the couch and watch movies right? And cook because I love to cook. My wife loves to cook. My wife is Puerto Rican. She cooks great Latin food, I cook Italian food.

Kenny Polcari: and then together we cook everything else. So that's what we actually did. It was a cold, rainy weekend up in New York, in Westchester County, and so Monday morning I went to work, and I'm typing my note at 6 o'clock in the morning and the phone rings, and it was a client of mine. Now, you know, sometimes you get nervous, because when the phone rings at 6 o'clock in the morning.

Kenny Polcari: It's not typically a good conversation. It's like somebody really needs you because somebody's dead or something happened, or whatever right? And so I pick it up the phone. I pick up the phone, and it was my buddy who was a client down in Dallas, and he called just to do nothing but say hello, and you know, chit chat about what was going on, and blah blah and all this.

Kenny Polcari: So he asked me what I did for the weekend, and I told him that same story. So he knows me, and he knows that I like to cook right. You like to golf. I like to cook. That's just the way it is. And so he asked me, what did I make for dinner? And so I went through 4 or 5 of the recipes we made, and one of them was just Arugula pesto. It's just Pesto made with Arugula instead of Basil right? And Arula's got like a little peppery kick to it, and so it gives it a different

Kenny Polcari: flavor than a basil pesto, which is a little bit sweeter. And so he said to me, jeez, that sounds good. Can you send me the recipe? And I said, Yeah, sure, no problem. And now I'm typing the note as I'm talking to him. So I said, I'll just put it in the bottom of the note and send it to you. So I put it in the bottom of the note, and when I hit the send button it went out to

Kenny Polcari: it, went out to the list

Kenny Polcari: right? And I thought to myself, Oh, God, I'm going to get my. I'm going to get my shoes broken today, because now there's a recipe in this note right.

Kevin Dougherty: Right.

Kenny Polcari: What was really, really funny is that I got 16 phone calls, because at the time I had 16 clients, I had 16 phone calls.

Kenny Polcari: and everybody wanted to know why there was a recipe in the bottom of the note today, like, what's with the recipe? I go. It was a mistake. I meant to send it to one guy blah blah. And so the reaction from the people wasn't like, you're an idiot. The reaction was. Well, I'm going to try this tonight, or I'm going to send it to my wife, or I'm going to send it to my girlfriend, or whatever it was right, I said. Listen. It takes you all of 15 min to make. As long as it takes you to get the water to boil. Boil the pasta. You can make the pesto sauce some garlic, bread, a glass of white wine. Bang! You're done right. And

Kenny Polcari: And so the next day, when I got to work, and I'm typing my note. I thought about all the conversations I had the day before. It was all about the food. It wasn't even about the markets. And so I said, You know what? I'm going to put another recipe in the note just because I cook and and I'm comfortable in the kitchen. And

Kenny Polcari: so I put another recipe in the note, and then the next day I did it again, and then did it again, and did it again. And so now it's this food and finance note, right? So where you know, because I talk about the market to the top half and the bottom half, I always give you something to eat. It could be anything it could be soup. It could be. Steak could be chicken, pork, fish could be. Pasta could be a rice dish whatever, but I always screenshot.

Kevin Dougherty: I screenshot it and sent it to my wife.

Kenny Polcari: Yeah, yeah, so that's how that happened. And it's funny, because because then what happened is that these guys would call me up. And they say, can you send the note to my wife, or can you send it to my girlfriend or my wife's got 5 girlfriends that want the note? Yeah, okay. So I started adding all these individual individual names to the note, and I'd send it out with the note. Now, it goes out to over

Kenny Polcari: 15,000 people that I send it to directly, and then it gets picked up. Yeah, I put it on my twitter. I put it on my Linkedin Bloomberg picks it up. So it goes across the whole Bloomberg network worldwide. So it's it's really it's it's really funny how it happened.

Kevin Dougherty: So yeah, your fan like your family secrets. What was it you

Kevin Dougherty: I was. Gonna say, I remember seeing around Christmas. What is it you get your.

Kenny Polcari: My grand well around Christmas. My grandmother always made this cheesecake at Christmas, I call it. You know Nana's cheesecake. I give you the recipe for that I give you, you know, around Christmas as an Italian that grew up in Boston because I'm from Boston, not New York. We would always do the 7 fishes on Christmas Eve? Right. You don't have meat yet. It's only fish on Christmas Eve, and so it's a tradition. So every year I give you the 7 fishes recipe once. Once it, you know. Every every day I'll give you a dip

Kenny Polcari: recipe for the 7 fishes, and I'll throw you in rest. You know, desserts that both grandmothers used to make, and I make it, it becomes personal, right. But that's part of the story.

Kevin Dougherty: Right.

Kenny Polcari: No, so it's just, you know, it's interesting. I enjoy doing it. And people enjoy reading it. And you know, there's this thing between food and finance, right? Because finance can be so unnerving to people and food, on the other hand, is so nurturing, right? Everybody needs food, and everybody needs finance. And so there's this Yin and Yang between the food and finance, which is very, very interesting.

Kevin Dougherty: Right? Yeah, no, it's I. It's 1 of those. Once you find your niche right like, and there's nobody else doing it. And that's it's Kenny. Kenny's out there doing it, and he's the one

Kevin Dougherty: right. And and you're like, I remember the 1st one I made was like, I think it was braised pork chops.

Kenny Polcari: Yeah.

Kevin Dougherty: And sent it to my wife. I was like, can you go pick up this stuff? I'm gonna try this when I get home and I don't.

Kevin Dougherty: I don't have a large recipe. I'm a soup and a Chili guy.

Kenny Polcari: So here's the problem with me, I because I grew up cooking, and I'm very comfortable in the kitchen. So I cook by feel right. So people say to me, you know how much salt, or how much sugar, or how much pepper, I said. You know I don't know how many people you're cooking for. You're cooking for 2 people. You're cooking for 10 people because it's going to make a difference because you got to make a bigger pot, and you know it's twice around with the oil. Maybe it's 3 times around with the oil. I don't really know. So I tell you, here's what's in it.

Kenny Polcari: You figure out how many people you're working for, and then taste it as you're going along, you can taste it and adjust it right? So don't. Don't ever put. If you think you had to put X, just put y, and then taste it, and cause you can always add more. Once you put too much. You put too much. You ruined it right.

Kevin Dougherty: That's that's the hippie that's the hippie tool belt. You can always take more.

Kenny Polcari: Correct.

Kevin Dougherty: Take less, and that's you can apply that to Pepper. My daughter hates Pepper right my 10 year old. She hates it, so I always dash a little bit in. And I'm like, Oh, I'm not even gonna taste it, because I know she's already going to complain that it's

Kevin Dougherty: too much pepper. So there's there's

Kevin Dougherty: pepper in this like, well, yeah, it's not vegan for pepper. So.

Kenny Polcari: Yeah, you know, it's funny. It is funny. And you, what you realize is

Kenny Polcari: there's a lot of people that are not that comfortable in the kitchen that maybe they just don't like it or they don't. You know they don't think they're a good cook, or they don't try it, whatever, because I get some very interesting questions back from people that suggest to me, wow! This person really isn't comfortable in the kitchen.

Kenny Polcari: The way they asked me the question. One day, for instance, I gave a lamb chop, lollipop, lamb, chop, recipe, and so you season lollipop lamb chops, and then you leave them out until you're ready to let them marinate, for you know, 20 min, but I said, season them on both sides, and then cover it with Saran wrap, and then just leave it on the on the on the counter until you're making you know the side dish, whatever it was, potatoes or broccoli, whatever it was.

Kevin Dougherty: Right.

Kenny Polcari: Okay. Now turn your oven on to broil and put the, I said, put the lamb chops in the oven.

Kenny Polcari: Did I need to tell you to take the Saran wrap off the lamb chops, or would you have just done it automatically? I didn't say. All I said was, now put your oven on broil. Take the lamb chops, put them in the oven, I forgot to actually say, remove the Saran wrap, and then put the lamb chops in the oven. I just said, put them in the oven, assuming that somebody's going to take the Saran wrap off and put them in the oven.

Kenny Polcari: That's the day you don't buy gorilla Glue stock. Okay?

Kenny Polcari: Next day I got an email, and the person said to me, was, I supposed to take the surrender, you're kidding right? Tell me you're kidding.

Kevin Dougherty: It's right.

Kenny Polcari: Because, of course, you were supposed to.

Kenny Polcari: She goes, he goes. You didn't say it. I go. Oh, my! I thought to myself, oh, my God!

Kevin Dougherty: Oh, my, I'm pop tart! Now I'm gonna get sued because I didn't put the instructions on the back of the box.

Kenny Polcari: Can you imagine?

Kevin Dougherty: And just.

Kenny Polcari: Whatever.

Kevin Dougherty: Yeah. No.

Kenny Polcari: Funny that you know you get questions like that. And a lot of times, you know, people say, I get 10 people coming over, you know. How do I measure? I said, when I cook for 10 people, you know you just you just. I've been doing it for so long. I guess it's just easy, right for me.

Kenny Polcari: and so I have to just walk them through it. But it's fine.

Kevin Dougherty: I went down this rabbit hole yesterday, because I'm the one who we have ducks and chickens, and so I eat the older duck eggs. The duck eggs don't fly as fast, so when I'm giving them out to people or selling them here or there, I'll give somebody like newer ones. If there's a couple dozen that are getting on the older side, I'll take them as my personal reserve, because I'll risk it.

Kevin Dougherty: and, like the duck eggs have been showing up like green, and I'm like you open them up. It's not the yolks. It's the the whites are like green or yellow, and I'm like they don't smell bad, and I had to go down this whole AI rabbit hole the last couple of days to find out why, but because I'm an Hvac technician by trade.

Kevin Dougherty: It's my job to be like a like an investigator. And so I got to figure out what's wrong with your furnace. I got to figure out why that water stain is showing up. I've got to figure out this or that, and so I'm going back and forth, and and Grok is like, you know. Give me some more information and come to. And it was like it. Could it be their diet? I'm thinking, like what what has changed about their diet. I'm like the ducks have been living outside, more because the weather's warming up and they've been drinking out of the non frozen pond, which is, I have to clean. i, 1 of my guys who used to work for me. I let him go, and

Kevin Dougherty: he used to clean the pond once a month, and it hasn't been cleaned in 6 months, and so all of a sudden, it's like algae blooms, duh, but it's like one of those like, if you don't know, and it like, it wouldn't have occurred to me the algae blooms had I not like, had that investigator like thinking of all the different little things that you, you know just that confidence that gets built in.

Kenny Polcari: Yeah. But I wondered, does that make the egg no good? Or was the egg fine?

Kevin Dougherty: The egg was fine. Yes, it just changes the pigment, and as the egg gets older, yeah, as as it gets older, it start like whatever, like the breakdown as it begins to start to go bad, or as it ages on its life cycle of before you cook it. What will happen is like the breakdown process will bring out those pigment colors.

Kenny Polcari: So do you. Do you eat a duck egg like you eat a chicken egg? You can fry it, make scrambled eggs out of it all that stuff.

Kevin Dougherty: That's what I do. Yeah, they're richer, creamier.

Kenny Polcari: Yes.

Kevin Dougherty: Yeah, a lot of a lot of the people that either get those big muscular guys like, I work with a couple of guys that one of them used to be a Ufc fighter. Yeah. And and he he loves the duck eggs because they're just like he, because he'll eat like a dozen eggs a day, and he likes the duck eggs better. But then, like his wife, will want duck eggs because she bakes, and it's better for baking.

Kenny Polcari: Are duck eggs more expensive. I can't go into my publix down here and buy duck eggs. I can only buy chicken eggs. Are they more expensive, or they just don't. They're not really retail.

Kevin Dougherty: My, I don't think they're retail, but my like, because my wife will yell at me because I just give eggs away.

Kenny Polcari: Right.

Kevin Dougherty: I'm just like, Here, take the eggs. Now, we're in a crisis, and she's like you really should be selling them. I'm like, don't cost us anymore. They're just our hobby, like it's just the thing in the backyard that keeps the fleas and ticks down like.

Kenny Polcari: Lot. You produce a lot of eggs.

Kevin Dougherty: 2 dozen a day, and then a dozen duck eggs a day.

Kenny Polcari: Do ducks lay eggs as frequently as chickens do every day.

Kevin Dougherty: Almost so like if you get into turkeys they lay eggs once a week, so we don't have any turkeys. It's just they're just a meat bird, but.

Kenny Polcari: Yeah.

Kevin Dougherty: The ducks. So the breed that we got are white layers, and they'll lay 290 eggs a year.

Kenny Polcari: Wow!

Kevin Dougherty: Where the chickens we got. They're 320 eggs a year, so the chickens are always going to lay substantially more. But they're

Kevin Dougherty: there's more there's like less mass to them. So like you're getting the same amount of like stuff out of them, like, I'm sure you can find like chickens that lay like 2 eggs a day for the whole year. But they're gonna look like robin eggs.

Kenny Polcari: Right? Right? Right? Are the duck eggs actually bigger than a chicken egg?

Kevin Dougherty: Yeah, they're not as big as goose eggs, but they are. They're like 25 to 40% larger than a chicken egg.

Kenny Polcari: Oh, wow!

Kevin Dougherty: You're almost at one and a half times with them, you know. So it depends.

Kevin Dougherty: So

Kevin Dougherty: gotta gotta call your males. You gotta have like one male for every like 4 to 5 females, because otherwise they're like dolphins. They they go around in this weird, like masculine. They pick one girl, and it's it's it's

Kevin Dougherty: it's kind of brutal. When the neighbors call you and be like you need to do something like. Then then all the neighbors get.

Kenny Polcari: They make all kinds of noise? Do they start squawking.

Kevin Dougherty: It. Just it just looks weird. So when somebody's walking by and they see it, they're like, Oh, Yikes, because we live in a city. So like we have sidewalks all around our house, and we just

Kevin Dougherty: have this little terrarium of ducks and chickens.

Kenny Polcari: We're just walking around the whole yard.

Kevin Dougherty: Yeah.

Kenny Polcari: We.

Kevin Dougherty: Free, range them in the yard, so.

Kenny Polcari: I think that's great.

Kevin Dougherty: Yeah, but it just it looks odd. So what happened was, we had to call like 1012 males, and you know you just do it one after another, you just, you know, throw them in a bucket, let them flop out, and then we're boiling and defeathering them and gotten them and everything else that you do. And then so we ended up. Just

Kevin Dougherty: once we let them cool. I would Saran, wrap them, throw them in the freezer, and any one of the neighbors who wanted duck like I went around like me and the kids go around every Easter. I will put bunny ears on, and we'll hand eggs out to people.

Kenny Polcari: Your your neighbors must love you.

Kevin Dougherty: Yeah, some of them do. They come in? They have a key to the fence. They'll come in with their grandkids and feed bread and other like scraps to the chickens. And they, you know. So and then we hand out eggs. So it's

Kevin Dougherty: that's cool.

Kevin Dougherty: Yeah, yeah, good. Good good donations of eggs make good neighbors, not just fences, so.

Kenny Polcari: Right, right.

Kevin Dougherty: The fences help, though, because then the chickens don't fly off into their yards and piss them off.

Kevin Dougherty: So if you're getting, if I guess I'm gonna transition here. If we're getting into the if you're like new to the market, which I would consider myself like a very a rookie. But I might not be, I still might be more experienced than most. If you're getting into the market. What what is your like? I know, and I know I've heard it from you a thousand times. But what is the the number? One thing for somebody starting out?

Kevin Dougherty: You get somebody that's my age. Maybe.

Kenny Polcari: Right? So so here's what here's what you need to just understand. As you go in

Kenny Polcari: a you got to start somewhere. Everyone goes, you know it's too late for you to start. It's never too late to start. That's number one number 2. You got to understand that there are cycles in the market. The market's gonna go up. The market's going to go down right every 2 years is typically a 10% drawdown in the market every 6 years is typically more like a 2520 to 25% drawdown in the market, which is kind of where we are today. In that 6 year cycle of a drawdown.

Kenny Polcari: Now, some of it created by, you know, a political policy, and some of it just created because the market had gotten ahead of itself. What you really need to understand is, unless the as you start to invest.

Kenny Polcari: you got to be committed to do it. You got to do it regularly. Whether you do it monthly. You do it quarterly. However you do it. You need to do it. You need to make sure you kind of design and build a plan. You know it's great to have a trading account where you want to take a shot and you want to buy. You know these these meme type stocks or these micro cap stocks that you think are going to be the next winner. That's great. That should be over here in one account. But if you're having, if you're trying to create an account

Kenny Polcari: that you want to be a long term investment account that's actually going to help you generate wealth and create wealth, then you have to do it over here in a separate account. They should be 2 separate accounts. Don't mix them. That's the 1st thing I'd say right, because this one over here is going to be very, very volatile, and this one over here you want to be more stable, but you want it to grow, and so you have to just be committed. So, however, you do it right. You do it weekly monthly, and listen, here's the other thing. You could do it with as much as $50 a week or $50 a month. You have to start somewhere.

Kenny Polcari: That's, I think the biggest thing for people to understand. It doesn't make a difference. You don't need a hundred $1,000 to get started, absolutely not. And even more today than when I was, you know, 20 years ago, when I 1st started where you couldn't buy fractional shares today, you can actually buy fractional shares.

Kevin Dougherty: Right.

Kenny Polcari: Do it with $50. If you want to buy $50 worth of apple, you can do that. When I was, you know, 20 years ago you couldn't buy a fractional share of apple today. You can do that. So there's absolutely no reason for people to say I can't. I can't. I can't. Yes, you can. But you have to have a plan. So the 1st thing you should do is, you know, decide you're gonna put X amount of dollars away

Kenny Polcari: on the frequency. You're going to do it and then start to do a little bit of research right talk to people. Read the read the Wall Street Journal, read the Barron's, you know. Read, listen to people, read my sub stack, listen to people that are in the industry that you respect and trust.

Kenny Polcari: and then start to build a portfolio of names that you're going to own for the long term, and those are going to be the names that I'm going to tell you that you all know they're the biggest names in the different industries that they represent. So it's Apple. It's Amazon. It's Ibm. It's Johnson and Johnson. It's Coca-cola Microsoft, right? It's Exxonmobil. It's all names like that. 1st of all, because they're the biggest names in each one of their industries right? So they've got. They've got a

Kenny Polcari: history of performance. They've got a history of dividends, most of them raise their dividend year in and year out. And so you, when you sign up when you do this, you want to also make sure that you sign up automatically for automatic dividend reinvestment, because when they pay their dividend every quarter. You don't want the cash. You want more of that stock that you're buying. That's also how you're going to build your wealth, and you build it over time, and if you.

Kevin Dougherty: Don't want it in cash right? If you're taking it back in cash, then you're you're just. You're defeating the purpose.

Kenny Polcari: Well, certainly, if your age you don't need it in cash, because you have another job that's providing your living and your income and your quality of life. You want this cash to continue to be put to work. Now, when you turn to be 65, or 70. And now it's a different story. Then that's when people draw on the dividend income to help, you know, assist their social security, assist their pension, whatever it is, some people never draw on it, because, you know, they've been so successful. They don't need it, whatever. But for the most part that's that's what you want to have in your mind. Right? That's how you want it to build

Kenny Polcari: and you should. And you should completely

Kenny Polcari: take advantage of, you know, ups and downs and dollar cost averaging, and when when we have a drawdown like this, I think the funniest thing to me

Kenny Polcari: is when you have a drawdown in the market, and names like apple. You know, trade off 15 or 18%. And Nvidia is down 30%. And Microsoft is down 22% people panic and go. Oh, my God! Oh, my God! I have to sell my Microsoft! I'm going to lose all this money. Remember, you never lose money unless you take, unless you make the sale and then lose the money

Kenny Polcari: right? If Microsoft was trading at $400 last week, and it's trading at $350 today. So yes, it's down $50 correct. But you haven't sold it yet. So you really haven't lost the money on paper. You've lost the money, but you haven't actually physically lost it. If you sell the Microsoft at 350, then you've lost the money, then you've actually made a sale, and you've taken yourself out of the game and you lost the money.

Kenny Polcari: Then when it goes back up.

Kenny Polcari: when it goes back up, then you're scrambling to get back in. Oh, my God! I got to buy Microsoft again. So I always use the analogy. And it's always very funny, because a lot of people can certainly relate to it, you know, when Bloomingda's has a sale and they put dresses on sale for down 30%. Women go flying in the store, and they buy 3 of them, because how can they leave them on the shelf on sale for 30% off?

Kenny Polcari: Take that same psychology, especially if you're buying Johnson and Johnson, Lilly, Eli Lilly Merck, Ge. Vernover, Bank, America, Jp. Morgan, Exxonmobil. Use that same mentality, and when the stock is drawn down, when it goes on sale, and it's a good quality name, and the story has not changed for that particular company.

Kenny Polcari: You take that as an opportunity, because the same amount of money is going to buy more of that stock because the stock is a lower price. Right? That's the point about dollar cost everything. And look when the market's at its high. That same amount of money is clearly going to buy less of that stock, that's clear. But that's why you have to take advantage of the of the cycle right, and and not

Kenny Polcari: run away when the market's selling, especially. Look, if you're, you know, 30 or 40, or even 50. This latest drawdown that we're having right now should absolutely

Kenny Polcari: be getting you excited versus not excited because you've got still 30, you know, 2030, or 40 years to go until you even need this money, if it's long term money. Right? If you're a 60. Look, I'm 64.

Kenny Polcari: I'm okay. I'm good, but I may only have another 10 years to live. Maybe I get 15 years to live. I don't know but I'm closer to the end than you, so I might be a little bit more cautious. But that's going to be reflected in my portfolio. I'm not going to be so far out on the risk scale. You guys that are 20 and 30 and 40 years old, you should be in terms of the risk scale and in terms of names that you own you should be a little bit further out on that risk scale, because that's how you're going. That's how that money is going to work for you

Kenny Polcari: right? Right?

Kenny Polcari: Get older. Then you draw down the risk, and then you go more into dividend paying stocks which are typically not volatile. They're not sexy. They're not going to be up 150% right.

Kevin Dougherty: You mentioned community communications in the past, correct, like.

Kenny Polcari: Communications communications is actually, it's that communicate the communications sector. And look, you can buy all these stocks in an Etf right, which you'll have a like a mutual fund. You'll have a combination of stocks, or you can buy individual names if you want right. I would start when you're 1st starting out, I would buy Etfs versus individual names. A. Because you don't have enough money. If you're just starting out, you want to buy. You want to have exposure. So you want to buy the Etf. Right? The Etf is just like a

Kenny Polcari: you know, a mutual fund you buy, but you can only when you buy, you can't trade it like a stock. When you put in order to buy something in a mutual fund, you get the end of day price. If you want to sell it, you know. A month later you're going to get the end of day price and an Etf. An Etf is like a stock. It's designed like a mutual fund, because there might be 50 stocks in it, but it trades like a stock all day long, so you can buy it at 10 o'clock in the morning. If you want to, you can sell it at 12 o'clock in the afternoon. I'm not. I'm not telling you to do that. But what I'm saying to you. It's a good.

Kevin Dougherty: Don't day trade etfs.

Kenny Polcari: Don't they treat each? But but it's a good way to give you exposure to a range of stocks in a particular sector. So you know, the consumer Staples sector would would have names in it like Procter and Gamble.

Kenny Polcari: Wait, hold on, okay. Procter and Gamble, Coca-cola, Johnson and Johnson. Philip Morris Costco. Those would be all names kind of in that consumer staple section. Right? Because consumer staples are things that you actually need every day. You need food. You need soap. You need deodorant. You need, you know.

Kenny Polcari: toilet paper. Those are all consumer, staple type, names versus consumer, discretionary. Those are things that you want. Not that you need. So it might be a new outfit, so consumer discretionary would be like Bloomingdale's or Jw. Nordstrom's or Tiffany's. Those are all those are all discretionary items, that if you have extra money that you want to go out and buy something that falls under that sector, but consumer staples are stuff that you need every day to run for your.

Kevin Dougherty: They're gonna be less. They're gonna be less volatile in the market because they're recession proof almost.

Kenny Polcari: Right. They're called the defense. They're called defensive names, because whether the market's going up or down, whether the economy is booming or busting, you still need to buy that stuff. And so they're staples in your life. And so those stocks tend to be looked again. They're not sexy. There's nothing sexy about Procter and Gamble or Coca-cola. There's nothing sexy about them, but they're dividend payers right? They're good dividend payers, and they offer stability for your portfolio.

Kevin Dougherty: Okay, yeah. I was just saying when I was a kid. My dad always told me to invest in a liquor store because they're recession proof, and it's 1 of those things, and they're never sexy. You ever go to a liquor store like there might be a nice bottle of wine, but it's always completely detracted by the homeless guy out front.

Kenny Polcari: 100% 100%.

Kevin Dougherty: So all right. So somebody's invested. Now, if you're somebody like me, would you? You'd throw it into. I know this is maybe getting into more of a tax guy situation, and and maybe you might not want to speak on it. But if you, if you're somebody like me like, Yeah, okay, you have your mad money account, as you call it, right the day trading, whatever you just. You just want to blow some money, and then there's the the long term investment. When you're doing a long term investment, you create just a a cash

Kevin Dougherty: account. Or would you recommend that people just kind of like, look through the options, talk with their accountant, and pick maybe like a Roth or a standard Ira or.

Kenny Polcari: Well, you should always have a tax advantage. Long term investment account. Right? So that means it's an Ira. It's a Roth. It's a 401 k. 100%. Because then, if it's a tax advantage investment account between now and the time you take it out, you're not paying. You're not getting a dividend statement at the end of the year. You're not getting a capital gains or capital losses statement. You can trade it in and out without paying any taxes, because it's tax advantage.

Kenny Polcari: You can have that. You can also have a straight investment account, right? Because you have extra money. You can't. Maybe you got more money than you, because you know there are limits to what you can put in your Roth, Ira, every year. So if you hit the limit there. I think this year it's $8,500 in an Ira, whether it's Roth or regular Ira, I think it's 8,500. It changes every year.

Kenny Polcari: but if you have more than 8,500, then you want, and you want to put it in an investment account. Then you have to open up a separate regular investment, a brokerage account

Kenny Polcari: which will produce at the end of the year. You'll get a dividend statement whether you reinvested that stock or not, that dividend or not, you did receive it, so you will get a statement for the dividend you received, and if you trade it in that account, and you've got a capital gain or capital loss. You'll also get that statement so that you will then, at the end of the year have to give it to your accountant to make sure that you know that's all incorporated.

Kevin Dougherty: You're in compliance. Right? Yeah.

Kenny Polcari: I'm not a tax. I'm not a tax, you know. I'm not an accountant. So so I'm just telling you. That's what you'd need to do.

Kevin Dougherty: This is where all the industries overlap. Right? They, you know.

Kenny Polcari: But in your but in your Roth, and your regular Ira, or your 401 K. You're not going to get an end of your statement. There's no tax consequences at all. So that should be your 1st investment account should be a tax advantage investment account. Look for a lot of people out there that if you're not employed or you've got, or you've got a you've got a 401 k. In your current employer. You can still have your own individual Ira

Kenny Polcari: or Roth Ira, so you can put money away at work, and you can put money away on the side that's your own. It's both tax advantage. And so I would always say to people, you should try to take as much advantage of that, especially when you're young as you can. Now I understand you're building a family. You got to buy a house. I understand that. Trust me, I was there.

Kevin Dougherty: And bottles.

Kenny Polcari: Yeah, yeah.

Kevin Dougherty: Yeah, yeah.

Kenny Polcari: I get it. So I understand the strains on a young family. But at some point here's always the lesson, just like, you know, every month you're going to get an electric bill. You got to pay the utility company, and every month you're going to get a heating bill every month you should, you should send yourself a bill

Kenny Polcari: like a savings bill, whether it's $50 or a hundred dollars, or a thousand dollars, whatever it is, every month, you should make sure that you just like you pay the utility company. You should pay yourself, and you should pay yourself in that. In that savings account right in that investor account. Now.

Kevin Dougherty: Just readjust it, maybe. Just look at your budgeting and say, Hey, you know, sometimes setting up an auto draft, correct.

Kenny Polcari: Right. Now I understand first, st what you have to send up is you have to set. You have to set up a savings account for like an emergency, I get that as well. So you know, after you have your savings account that you'd have for an emergency. Maybe there's 4 or $5,000 in a savings account that just sits there in the event of an emergency. But once you start to to once you get there and you're comfortable, then you should start to build wealth, and it takes time. But time is on your side as a 20 or 30 year old.

Kenny Polcari: Right? And and you'll build wealth.

Kevin Dougherty: Okay, yeah, that's no. That's great advice. What I noticed that most people do is they don't. They don't save. And I think that setting up those baby steps, even if just setting up an auto draft that comes out of the even just, you can set it up with your employer, too. You go in and you say, Hey, listen! I want my direct deposit. I want $50. You can set up a percentage or a or a set number, and just have it go to a separate account. And you, the all these accounts have routing numbers and account numbers and.

Kenny Polcari: And if you're at work and you have a 401 k. Out of your you know you should absolutely be deducting money to put in your 401 k. Because A. It reduces your income. So at the end of the year you've got a tax benefit, because, you know if you made a hundred $1,000 that year. But you put $10,000 into the Ira. Your reported income is really only 90,000, so you're only going to get taxed on 90, not the 100.

Kevin Dougherty: Right? Right? Right? Of course. Yeah, the yeah.

Kenny Polcari: You put in the 401 K. You're only going to get taxed on the net amount so that ends up giving you a tax benefit as well. Now, look, I understand, maybe 10% is a lot. Okay, I'm using it as an example. But I'm just telling you that you know any money that you take from your work, and you put it into the company sponsored. 401 k. Is to your benefit.

Kevin Dougherty: Right. It's not just yet. Some people look at it like, Oh, it's not Fica. It's not going to somebody else's pocket. It's not going to something that's getting scattered out throughout the Government. It's it's going into your pocket in the future.

Kenny Polcari: Right. So here's the other thing I'd say about people. Also that work at public companies, companies that trade on the New York Stock exchange that may get part of their compensation as well in their own company stock. So you're putting money away in a 401 k. But then, you know. Maybe maybe you're getting a bonus, and part of it is stock.

Kenny Polcari: and part of it is cash. Okay, that's great. Because now you're getting stock in the company you work for. But remember, you also work for that company. So while you're getting stuck in that company, it's great, and a lot of them have a lot of them, have stock, buy plans for employees. Well, they'll give you a 50% discount to buy their stock on a quarterly basis.

Kenny Polcari: If it's a great company, you should absolutely do it because they're giving you 15% off, they're giving you a discount to buy the stock. But you also at some point. You also have to sit back and realize what's my exposure now, because maybe now you're overweight that stock in your portfolio, you work there, don't forget you're employed there. And now you have a lot of stock from that company. So at some point it does make sense to liquidate some of that stock and re diversify it into something else, because, you know you don't.

Kenny Polcari: you lose your job, and the company goes on

Kenny Polcari: where the company goes. Bust. Not only did you lose your job, but your stock becomes worthless. So, and you know there's look, Enron, Bear Stearns, Lehman Brothers all those companies. That's exactly what happened. Right? People that worked at Enron. I'll never forget it. When Enron went crazy I was working on the New York Stock Exchange. It was just nuts. But Enron was an energy company down in Texas.

Kevin Dougherty: Oh, oh, I know my! He was my! My dad always my dad always would. Reference. Ken lay.

Kenny Polcari: Yeah, yeah, it was like.

Kevin Dougherty: Like he he's like, if you're he's like, never rob a liquor store. He's like, if you're gonna if you're gonna be a criminal, be that guy

Kevin Dougherty: right? Because.

Kenny Polcari: Enron was at 1 point. Enron was like the way we talk about Nvidia today. The excitement around it. Enron was that stock in the 19 eighties. Everyone goes. Oh, my God, you have to own Enron, Enron Enron! And what happened was it? Was it ended up really being a Ponzi scheme, and when it blew up it took all those people out, and all those people that worked there that thought it was a great place, had all their wealth

Kenny Polcari: invested in Enron because they used to get used to get stock as compensation, and they vowed I'm never selling my Enron. I'm never selling my Enron. Well, okay, then the stock blew up, and now you lost everything.

Kenny Polcari: And so I would say to you, take advantage of the discount that you can buy the stock. But then you're going to get stock, as also part of your compensation. At some point you want to start to look and say, Okay, let me just peel back some of it. Not all of it, necessarily, some of it. And take that money and rediversify it somewhere else, just because again you work there you have a lot of exposure to that one company.

Kevin Dougherty: Right then. I see it from the company's perspective, like, why wouldn't you

Kevin Dougherty: want to buy? Have your employees own stock? Because now they feel more vested into doing a better job.

Kenny Polcari: Correct a hundred percent.

Kevin Dougherty: It's because Price's principle plays a lot into this, do you ever? I believe it's Price's principle that, like just the the workload of people right? So you might have like, 50% of the work of 10 people is being performed by like

Kevin Dougherty: 3 people. And then when you get to a hundred people you have.

Kevin Dougherty: like, 50% of the work is being done by 10 people. So where it was like 30%, like the the growth of productive people stays linear while the growth of

Kevin Dougherty: the growth of unproductive people exponentially grows. So like, is there is there ever an advantage to investing in a smaller organization over a larger one. Obviously, you say, larger ones are safety nets, but like does that principle of like mass layoffs and slack.

Kenny Polcari: You know I had never thought about it that way. But look, even if you get mass layoffs at a place like Johnson and Johnson. It's still Johnson and Johnson. It's not going. It's not going out of business. But that might be part of the cycle, too. Right just happens. And it happens across

Kenny Polcari: a range of industries.

Kevin Dougherty: They get too big and they gotta cut the fat.

Kenny Polcari: Big, and they got to cut the fat. It's like anything, right? It's like, look at your own family budget, you know. Sometimes you just you just get it just gets out of control. And you say, Whoa! Whoa! Whoa! We got to pull back. You gotta start.

Kevin Dougherty: The vacation fund is we're going on vacations way too much. We need to be able to buy groceries.

Kenny Polcari: Right, or you're spending. You know you're just spending money on stuff you don't necessarily should be spending money on. Look, I think the biggest thing is, you know, and I'm guilty. And I actually, after this conversation, I should go and look. You know, these subscription things. They hit. Yep. Oh, it's only 9, 99 a month. Well, suddenly you got 10 of them, and you're spending a hundred dollars a month on subscriptions that you don't even really use every once in a while. Right? You just get drawn in and you do it. And then, next thing you know, you get hit with subscriptions. You don't even realize you're getting hit with it right.

Kevin Dougherty: Dot com is my is my like. I've been paying for stamps.com, and I've probably sent like 10 letters, but.

Kenny Polcari: A 100%. And so you don't even realize you're spending the 100 or 200 or $300 a month on these subscriptions that are only 9, 99, or 1299. You know it. Just you get caught up. And so you end up having to go back and say, Okay.

Kenny Polcari: right?

Kenny Polcari: Yeah. It was the last time we watched Hbo Max.

Kenny Polcari: right? But it's a healthy exercise to do. And so think about that. Just on the corporate level, you know. Sometimes they get big and fat, and they got to trim and cut the.

Kevin Dougherty: They gotta lean down. They gotta shed their skin. They gotta.

Kenny Polcari: And you may start to see that actually, in this current environment that we're in, you may start to see where earnings season just started on Friday, right, the big banks, reported Jp. Morgan, and which blew it blew it out of the water on every level.

Kenny Polcari: By the way, I own Jp. Morgan. I love Jp. Morgan. I love Jamie Dimon. Jp. Morgan is a name you should own. If you're going to own a bank stock one way or the other

Kenny Polcari: what you're going to start to hear over the next month. As these companies all report is what their forward guidance is. Some are even choosing not to give forward guidance right now, because they say the economic environment is so unstable that they don't know what's going to happen with the tariffs, with the economy. So a lot of companies are now opting. To not give guidance, which is, in my view, negative right would be a reason to be a little bit negative.

Kenny Polcari: But you also may see people announce, Look, we've gotten too fat. We don't know what the environment is going to look like. And so they're going to announce they're going to start announcing layoffs. I wouldn't be surprised if that happens.

Kenny Polcari: but if it's a name.

Kevin Dougherty: Employee, but it's good for the company.

Kenny Polcari: Correct. And then it's ultimately yeah. I hate to say it like that, but it is ultimately good for investors, because once again, they're cutting the fat out right? They're trying to drill it down to the core again. And so while it sounds, it's odd because you're right. People lose their jobs. And it's a negative. But as an investor it's actually a positive.

Kevin Dougherty: Right right? And that's and and I guess that kind of gets into the next point that, like some people are afraid nowadays to invest in the market. And like you're saying, people companies aren't giving this forward guidance. And it's kind of like how the markets have been in this weird turmoil, because we there was almost 0 guidance from political things like what's going on with the tariffs and the markets have been going all over the place. And then finally, when they leveled out with a plan like, Oh, we're just attacking China now. All of a sudden the markets have calmed down. They've resumed back to where they were.

Kenny Polcari: So listen. You get 1 1. All you need is one positive headline, and it may be this weekend because you got Japan in town you got. The EU is coming to town to see the President. You get one positive headline tomorrow or Monday morning, and this market is going to take off right now, negative, still negative against China. But look, that's a whole China. The China trade situation with the world is a whole separate issue in and of itself.

Kenny Polcari: So that's going to continue to be an issue. But you get one positive headline from one of these 75 countries that's coming to DC. To make a deal, and this market is just going to take off again. Which is why I say in my notes, you know you have to get. You have to get comfortable with sometimes being a little uncomfortable, right? The market's under stress. Oh, my God, yeah, you get you go, you know. I don't know what to do.

Kenny Polcari: You got to get comfortable with being a little uncomfortable again, assuming you own high quality names in your portfolio. Then you have nothing over the long term to worry about. But if you own a bunch of micro cap and nano cap stocks, you better go get the exced out because you're gonna have a real bad headache.

Kevin Dougherty: Right. And and that's what I noticed, too, is, it seems to be like most of the people you see doing all these protests recently are also the people that are investing by their gut, and they see the stock plummet, and they're emotionally charged, and they just grab a picket sign and they head out there instead of sitting at home and saying.

Kevin Dougherty: It'll come back.

Kenny Polcari: Right. Well, they're blaming everybody else, and look at all the money I lost. Blah blah dude. You got to make sure you look at your own account. What did you invest in? What are you in? Okay? Great. You're right. Apple's down 20%. You're right. Apple makes a billion dollars every 3 months. Think about that for 1 min. A 100 billion dollars every 3 months is what apple makes. Is apple going anywhere? Is there any reason to get distressed over.

Kevin Dougherty: Right, because they're still positive right?

Kenny Polcari: Still positive. Because, look at this, here's what you also have to understand

Kenny Polcari: when big asset managers need to raise money because because their individual investors need money, you know. Listen! There are people that are my age and are now retired that draw on these accounts. Every month the company's got to send them 10 or 15 or $20,000 a month for them to live on, because that's kind of the whole point of setting up the investment account. When you get older, then you draw this money down right? So when you think about all the people that might call Blackrock or Fidelity every month and say, you know.

Kenny Polcari: I need my $10,000 a month. Well, multiply that by X amount of people, it's actually a lot of money, right?

Kenny Polcari: And so when these asset managers need to do that, or there's a drawdown in the market, and they're just reallocating. They sell names like apple because they can, because it's a big mega cap name that you can raise a lot of money very quickly, right? And so you get. That's where you get the drawdowns in very solid names, which doesn't mean, which doesn't mean at all that there's something wrong with the company. It just means that they're. It just means that they're taking advantage, and they're reallocating, and they've got to pay some money out, and they're going to reallocate.

Kevin Dougherty: And then actually votes back up.

Kenny Polcari: Blows back up. Apple is not a name. Look, I'm going to die with my apple right? I just keep buying more apple, and I keep reinvesting the dividends. I'm going to die with my apple, because I think it's a name that I'll pass on and pass on and pass on.

Kevin Dougherty: Right? Okay, that's yeah. And that's and that's, I think that's that's a big thing that a lot of people I know. You say, you got to get comfortable, being uncomfortable. Me and the kids take jujitsu, and that's like that's like one of the number one things because you're grappling with somebody, and you're going to feel uncomfortable as you try to maneuver through this. But you have to be comfortable. You have to adapt. You have to adjust with changes. I mean, it's a similar dance to a conversation to investing in the market. Correct?

Kevin Dougherty: And then what's the other classic, Kenny Paul Carey line that there is, is it's not.

Kevin Dougherty: It's not timing the market. It's time in the market.

Kenny Polcari: Time in the market. That's correct, and that's exactly right. You know, people that try to. You know, they try to pick the tops and the bottoms I got to sell at the top. I'm going to buy it again at the bottom. Guess what you waste a lot of time. You waste a lot of energy when you do that right. If you're a trader, look, if you're a day trader, that's all you do is you try to time the market because you want to get in. You want to get out. You want to get in all day long. You're in out, you're out, you're in and out.

Kenny Polcari: But if you're a long term investor, you don't want to do that at all. You just want to be consistent, right? It's the time that you're in the market that's going to create long-term generational wealth for you.

Kevin Dougherty: If you see that it's down you should invest now. But don't go out of your way to wait for a downturn.

Kenny Polcari: That's right, keep it. Keep it consistent. That's the most important thing is consistency. Is that look, you can say that about anything right? You want to be a good golfer, you got to be consistent. You want to be a good tennis player. You got to be consistent. You got to do it every day or every week, or whatever you do right. If you're going to be better at something you got to do it. You want to be a better investor. You've got to be in the game. You can't say. One day I'm in next day I'm out. Oh, my God! I got to sell everything. Oh, my God, I can buy everything right. I had especially over this drawdown. It's funny, because.

Kenny Polcari: listen, everyone reacts differently right? And so I get it.

Kenny Polcari: But but you know this this the you know, I have a client who got immediately nervous, you know, when the market started to come under pressure, and I'm going to lose all my money. 1st of all, you're not going to lose all your money. Let's just get that straight.

Kenny Polcari: because while stocks may be under pressure. His bond part of the portfolio is surging, because, as stocks hit down, bonds went up, so there's a balance there, right? He might have lost some money here, but he gained money there, so net net. His account is not necessarily down 20% because the bonds are up right. His alternative investments offer stability to his account. So I have to. You know, I have these conversations. I say, okay, let's look at the account, and so we'll pull up the account, I'll go over with them. Okay, yes, your equities are down.

Kenny Polcari: They're down, but you're still well ahead from when you 1st came in. Your account is still up X over your original entry point. Right? So if they came in with a million dollars, and the account is now worth 2 million dollars. You're up a million dollars. You're up a hundred percent. So if the market sells off 20%, your account goes down to a million 8,

Kenny Polcari: you didn't lose your money right? You lost value. But unless you make that sale you didn't lose money and and then stay tight in the Michael Cup, and so you spend a lot. I spend a lot of time having those conversations with people

Kenny Polcari: trying to trying to calm them down.

Kenny Polcari: Nervous. I get it legitimately. They get nervous. But that's part of my role is to say, Look, you're okay. Here's what you're invested in. Here's why this is good. Here's why we're going to take more advantage. Right? You don't own we don't. As a at Slavestone wealth. When people don't own crap, we own the biggest names we do all our due diligence, we create our all, our own portfolios, we make them bespoke to the person we're talking to. If I have a conversation with you, Kevin, it's going to be very different, because, you know, you're 35 years old versus a conversation.

Kevin Dougherty: Actually 37 today.

Kenny Polcari: Happy birthday, honey!

Kevin Dougherty: Thanks.

Kenny Polcari: Yeah. My birthday was a couple of weeks ago. I was 64, but.

Kevin Dougherty: Now you're a Beatles song.

Kenny Polcari: There. But

Kenny Polcari: You know, the conversation between a 60 year old versus a 30 year old is going to be very different. And and so you have to. I spend a lot of time having that conversation, and it's fine. I just I because I enjoy doing it, and I've been in it long enough.

Kevin Dougherty: Transition right? You want to transition them into more less sexy stocks.

Kevin Dougherty: Get older.

Kevin Dougherty: Take it all.

Kenny Polcari: Get older right? They want to pull back on the risk, that's all. Doesn't mean they're selling everything.

Kevin Dougherty: Now, where are you on? Where are you? On Bitcoin? I've done 0 investment in Bitcoin. Is Bitcoin like similar to the stock market, I mean, I guess it's still a financial asset.

Kenny Polcari: Right. But it's very volatile, right? So if you're going to go into Bitcoin, you have to know you're going in for volatility right now.

Kevin Dougherty: Hooray! Hooray!

Kenny Polcari: Right. But I own 3% of my portfolios in Bitcoin. That's it no more. I wouldn't put any more of me. Personally. There are people that have a hundred percent of their money in Bitcoin. Now, while I think it's okay, if that's what you want to do, I think it's crazy. But

Kenny Polcari: that's me, right? So I have a 3% position in Bitcoin. So if Bitcoin goes to 0, I'm not going to get slaughtered, I've only got 3% of my portfolio in there

Kenny Polcari: right.

Kevin Dougherty: And I think that's what a lot of people need to understand is, everything is risk.

Kenny Polcari: Correct, correct.

Kevin Dougherty: Risk going to work every day, and then eventually, one day, you don't have a job. But now you have a mortgage to pay for all these other things. I mean, you're taking a risk just by breathing. You take a risk getting your car every morning

Kevin Dougherty: right.

Kenny Polcari: Like like

Kenny Polcari: 100%. But so when you design your portfolio in Bitcoin, specifically, do, I think people should own Bitcoin, I think you should have some exposure should you own your ethereum. Yes, I own 3 of them. I own Bitcoin ethereum and Xrp. I don't own Solana and all the other ones, and the Donald trump coin and all that stuff. I don't own any of that. I own the 3,

Kenny Polcari: and Bitcoin's the big out of the 3. Bitcoin is the biggest position out of them all. But I don't let it get out of control. And when I say, I own 3%, that's 3% amongst those 3, those 3 assets that I.

Kevin Dougherty: You own 30 or 3, you own 3% total.

Kenny Polcari: 3%.

Kevin Dougherty: Okay. Thanks.

Kenny Polcari: Total portfolio.

Kevin Dougherty: I thought you said 30. Okay.

Kenny Polcari: No, no, no. 3% of my okay. Totally portfolio.

Kevin Dougherty: I was. Gonna say, man, your rest of your portfolio.

Kenny Polcari: No, no.

Kevin Dougherty: Phenomenon.

Kenny Polcari: No, no, no, no, not me. But I'm 64. Listen. If you want to own 30%, you're much younger than me. I'd say, okay, I don't think it's a smart idea.

Kenny Polcari: You know you're much younger than I am.

Kenny Polcari: I can't afford to do that, because I'm way closer to the end than you, but but like anything like a lot of our portfolios. And don't forget a lot of our portfolios. The demographic for us is anywhere from the 50 to up group. Now do I have clients that are 30 and 40? Yes, but but the bulk of our demographic is 50, and up people that are really preparing for the later stages of their life.

Kenny Polcari: And so their portfolios reflect that. And so there's fixed income in there. There's alternative investments there, and then there's there's a stock portfolio. But even in the individual names that we buy for them there's not a position that's bigger than 3 and a half percent in any one name.

Kenny Polcari: There's not. So it's 3% of Nvidia, 3%. John, you know the value of the portfolio. If they're putting 50% of the portfolio into stocks. Then

Kenny Polcari: of that 50%, all the stocks in there, you know, it's going to be the Max is going to be 3%. Some will be 2%. Some will be 3%, maybe 3 and a half percent. Max.

Kevin Dougherty: And you just treat the entire category of Bitcoin like it's an individual stock.

Kenny Polcari: Correct. I actually treat Bitcoin as if it's I put it kind of in the alternative space, right? Because it's not really a stock. It's not a bond, it is a financial asset, but I don't include it in your equity, part of your of your portfolio equities or equities. Bitcoin is not an equity. It's an asset, but I don't count it as an equity. So I have it. It's kind of its separate category.

Kevin Dougherty: Right. And then it's like, what's the the Robert Kiyosaki phrase the government can't print cattle, so I own cow farms as well.

Kenny Polcari: That's the.

Kevin Dougherty: It's it's another investment. It's a good spot. It's not the stock market, it's not a bond. It's not Bitcoin.

Kenny Polcari: That falls under alternative. Right? That's an alternative. It's not. That's right. It's not a stock. You can't buy it and sell it every day like any kind of stock. You're in it, for the you know, when you're in it becomes illiquid. You own it, but you can't just sell it, you know, at a moment's notice. Right? Right? That's.

Kevin Dougherty: By Bill Gates is gonna have trouble getting out of all the farmland that he owns.

Kenny Polcari: Well, if he's getting out of it, I don't know. We'll see.

Kevin Dougherty: Oh, you're right, right. But.

Kenny Polcari: Yeah.

Kenny Polcari: I'm just afraid I just don't want, you know, because I don't want him to sell it in block to a place like China, which he would probably do, because what does he care? Right?

Kenny Polcari: Exactly. Well, that's all.

Kenny Polcari: The conversation.

Kevin Dougherty: That's that is, that is the issue between. So like I read

Kevin Dougherty: Vivek Ramaswami's book right? And he talks about how great capitalism is. But it's not the end. All be all right. It's not the like. There are flaws with capitalism, and you can't like you don't use capitalism to deal with your grandmother. You you use it, and it has a space. But at the same time, like it's also not the moral compass of society. So always knowing that it has a place like a tool. You can't take your hammer with you everywhere. If you take your hammer with you from a job site to an argument like it becomes a very

Kevin Dougherty: right moral, imperative type of situation, and so like, where capitalism is great because you can buy all this farmland, and then you're chasing the dollar. Sometimes you chase the dollar into a point that you might be someone doing something that's against your your gut beliefs in other areas like selling all your farmland to China and letting China kind of dismantle, and gut your company your country right? So like.

Kenny Polcari: Right. But you see, there's a there's a catch there, right? Because you, because at some point everything's everything's for sale at a price, somebody comes and bid you a stupid number for your house, a really stupid number, you're going to say to your wife, pack up or out right, just because it's such a stupid number. You don't care who bought it. All you know is that somebody gave you a stupid number for your house.

Kenny Polcari: Oh, yeah, of course

Kenny Polcari: you take it, and it could have been the worst decision you make, because the person who bought your house is not the person you want to buy your house. It's the same situation in this.

Kevin Dougherty: Sure. Yeah, they turn.

Kenny Polcari: Kind of comes in and says to Bill Gates, You know we're going to pay you 500 billion dollars for all this farmland great sold to you. I'll take the 500 billion right.

Kevin Dougherty: It's yeah. It would be. It would be dumb for him not to right. But it's right for the

Kevin Dougherty: what.

Kenny Polcari: Correct, and I'm great for him, but bad for the rest of us.

Kevin Dougherty: And so I'm a little government guy. So I also see like, How can you stop Bill Gates from doing something like that? But at the same time, I don't want to give the Government that kind of arm to be able to get their hands involved in anything.

Kenny Polcari: Well, okay. So I'm in the camp that you don't want to stop them from doing it. But you should be able to stop them from doing it.

Kenny Polcari: If it's negative, you know. Like like having China buy, that block of land is a negative. As far as I'm concerned, it's almost a national security issue. Sure. Right? So that's where I draw the line. It's great. You can't do it. Find a find a Us. Buyer.

Kevin Dougherty: Goes by right like Tiktok.

Kenny Polcari: You can't.

Kevin Dougherty: They were.

Kenny Polcari: It becomes a national security in my mind, it becomes a national security the same way. Look the fact that we make all our drugs in China and India is mind boggling to me the way that this country allowed that to happen, that we're dependent on India and China, which, by the way, are emerging market countries to produce our medicines, our medicines. It's crazy to me that, in my view, that's a huge national security issue.

Kevin Dougherty: I mean, yeah, I mean, if if if they can, if they've got like Wuhan viral.

Kenny Polcari: What's that?

Kevin Dougherty: If they can take that, and they can just mix a little bit of that in a pill and then distribute across the United States and aspirin.

Kenny Polcari: Right.

Kevin Dougherty: We're done.

Kenny Polcari: That's what we.

Kevin Dougherty: Not everybody just got Covid.

Kenny Polcari: 100% done. Which is why it's confusing to me that that you know, we as a nation, have allowed that to happen.

Kenny Polcari: I don't know. It's just. It's nuts to me. But maybe maybe, in fact, now it's going to change. Maybe Trump is right. Maybe you know, he's going to bring manufacturing to this back to this country. Is it a little bit more expensive? Yeah. But guess what Americans have jobs we're manufacturing in this country, and it becomes a national security issue. Look, I'm not arguing politics one way or the other. I'm just saying, think about think about that kind of manufacturing process. The fact that we let India and China make all our medicines, and we're dependent upon them for our medicine.

Kenny Polcari: Look, I,

Kenny Polcari: I have cancer right now. Right? So I'm on a lot of medicines. And the thought that these medicines are coming from a 3rd World country or an emerging market country is a little bit unnerving to me.

Kevin Dougherty: Right, and the fact that they don't have your best interest at heart.

Kenny Polcari: Correct a hundred percent.

Kevin Dougherty: Right like, when was it tick, tock? They came through, and they were like they were like, Well, find a Us buyer. And there were people offering to buy them at like market rate, and they could, and they were like, no, we'd rather shut it down, which lets you know that they're not in it for the money. They're in it because it was a tool to deceive the Us. And to me, that's that is a national security issue. That is a big issue. And it's like, you know.

Kenny Polcari: Think about all the semiconductor parts that are now in automobiles that come out of China.

Kevin Dougherty: Right.

Kenny Polcari: Just think about this for 1 min, like they did remember what the Israeli did, what the Israelis did to the to either the houthis or hamas, when they blew up all their cell phones because they had the chip in them and they could control it, and then boom! They blew them all up. They killed all those people. Think about that for 1 min all these semiconductors that are in our cars. And suddenly China goes, press a little button there all these.

Kevin Dougherty: And every military Humvee aircraft.

Kenny Polcari: Unbelievable to me that that you know that. No, that that you and I are talking about this, and nobody seems to be concerned about it like it's crazy to me.

Kevin Dougherty: Oh, yeah, and especially like, so I walk into people's houses all the time, and they don't know the difference between a furnace, a boiler, you know, an air condition. Oh, that's my air conditioning unit, like it's also your heat and or your boiler also runs your your potable water for taking a shower. They don't understand heat, water and shower water. And so it's like, if you're not an expert in the field

Kevin Dougherty: like, how can you know if somebody sabotages something right like. And I've seen I've I've seen. Then we usually try to run these people out of our market is like when somebody comes in, and they pretend to know what they're doing. And then they, you know, damage something in someone's heater and they become very nefarious. And you're like.

Kevin Dougherty: no, no, not gonna stand well, if you don't know anything about if you're Joe Joe Homeowner, you're liable to fall for that exploding chip, because.

Kenny Polcari: Percent.

Kevin Dougherty: The Us. Doesn't. We don't have that many people that know enough to look for crap like that when we're getting these these chips and semiconductors from China. So it's 1 of those like, if we're manufacturing them here, we could have our own internal inspectors going through and being like, hey? This is a military operation. All this stuff needs to be looked at and.

Kenny Polcari: It was like those televisions that would come from China that you know, they had the built-in camera in them. All these all these brand new televisions have built-in cameras in them. So your people do right? And so you turn your TV on and the cameras automatically, automatically on, you don't even realize it's on. And it's watching everything you do right? Where is that data going? And why is a camera? Why is the TV watching everything I do, anyway?

Kevin Dougherty: Right? Yeah, unless you're gonna use it for a zoom call or whatever I get it. But but people still sell those little things for your camera that goes over the top.

Kenny Polcari: You can put it over the top, correct.

Kevin Dougherty: And because you never know somebody could be hacking it on the back end where your computer doesn't tell you that your computer, your cameras recording because it's plugged in. It can be fed anywhere.

Kenny Polcari: Correct and say, listen the same with your phone. Let's be honest that you and I are talking about. You know you and I might be talking about a new car coming out. Next thing I know there's an ad on my phone. Show me exactly that new car that I just.

Kevin Dougherty: Yeah. And isn't that isn't that funny? I always.

Kenny Polcari: Like. It's a little bit unnerving to me. Right? That right? You have a conversation, everything you do right.

Kevin Dougherty: Put into it, and they put it in an algorithm. And then that algorithm runs it through. AI. And there's your, there's your artificial intelligence doing the work of maybe not somebody nefarious, but just somebody who's trying to chase that dollar.

Kenny Polcari: No, but I'll tell you something you said at the very beginning, Grok, if you who, if people out there using AI and they haven't tried. Grok Grok is unbelievable.

Kevin Dougherty: That's that's the one I use for. Everything

Kevin Dougherty: is a grock is a twitter. Right? It's a it's a it's an Elon musk product.

Kevin Dougherty: Okay.

Kenny Polcari: You can get it separate or you can get it. If you have a Twitter account it's built into your Twitter account, I think. Listen. I was using Chat. Gbt. I think Grok is better than Chatgbt, and I'm sure you know next week there's going to be another one, whatever. But Grok is unbelievable. I was having a conversation with it yesterday about about the PPI report, so I was asking a question about the PPI, and it gave me an answer, and then I just pivoted.

Kenny Polcari: I pivoted to a stock I forget which I forget which one it was. I think it might have been Jp. Morgan.

Kenny Polcari: because Jp. Morgan earnings yesterday, and it said to me, Do you want it said to me, Do you want to talk about Jp. Morgan in relation to the PPI question you just asked me, or is it a separate question you're asking me? It was unbelievable. The response that it gave me.

Kevin Dougherty: Oh, yeah, no, I I can't like I had the conversation about duck eggs with it, and it was giving me like check dietary issues.

Kevin Dougherty: Is there a smell? I'm answering some of its questions, and then it's helping me refine it and helping me do my investigation.

Kenny Polcari: It's it is unbelievable. It really is.

Kevin Dougherty: There are certain other tools that you have to incorporate right? Like, if you're using like, Hey, Grok, help me do this like I've been trying to write a song and Grok help me kind of fine tune. I don't write songs all the time, so I don't. You know what would be better for the hook versus the bridge versus you know this or that, and they go through all these different things, and you look at it, and you're like.

Kevin Dougherty: like, okay, so help me help me assemble it, because, like I come to Kenny Cole Carey and I say, Hey, what is the formula. Well, I wouldn't invest more than 3%. Like, you know, the formula, no more than 3% in one stock, no more than 3% into Bitcoin, and those are certain, like parameters. Well, there, you don't always have to follow those parameters with writing a song. But Grok knew it more than I did, and was able to walk me through it. Now Grok is limited. Grok can't help me turn it into sheet music. It can't help me come up with a beat.

Kenny Polcari: Not yet not yet.

Kevin Dougherty: It can't yet, but there's other tools out there.

Kenny Polcari: 100%. And, by the way, by the way, you know, like, when we talked about investing in the 3% rule, that's that's me. That's how we do it. You know, Grock will say to you, or some of them will say to you, 3% is the number. But ultimately, you're going to do what you want to do right. That might be kind of the standard rule. But you're going to say screw it. I'm only 30 years old. I want to put all my money in Bitcoin. No one's going to stop.

Kevin Dougherty: Not all songs have a bridge.

Kenny Polcari: That's right. You could certainly do that. But it's a matter of you know, knowing what your risk is right. And here's the other thing that people should understand. Just so. And you know, unless you're talking to an advisor

Kenny Polcari: like everyone that comes in, everyone that we manage money for the 1st thing we do is we give them this risk assessment, right? It takes you 10 min to fill it out, but it just gives me an understanding of kind of where you are right in terms of what you think your risk is, and the risk is on a scale from 0 to 99

Kenny Polcari: and 99 being the most risk 0 being basically cash right completely conservative.

Kevin Dougherty: Sure.

Kenny Polcari: And then you come out. So say you come out as A. 65. Now the S. And P. The S. And p. 500 which represents the total market is a 75 on that scale. So if you're if you're at 75, or lower, you're more conservative than the market. If you're above 75, you want to take on more risk than the general market. Right? That's how that works. So now you come in, you tell me you're a 65. Okay, great. So you're a little bit. You want to be out in the risk scale. But you don't want to be any riskier than the market. You want to be a little bit more conservative. Fine!

Kenny Polcari: Then you give me the portfolio that you've created, and I and I run that to see what the score is on that portfolio, and the score in that portfolio is an 85,

Kenny Polcari: and I call you up and I go. I go, Kevin.

Kenny Polcari: you tell me you want to be a 65. But yet the portfolio create is an 85. So you're way more risk than you say you want, and so, if the market takes a drawdown this account, this portfolio is going to get hit much more than you're willing to than you're willing to sacrifice.

Kevin Dougherty: Right.

Kenny Polcari: So a lot of people don't realize that until they actually they get a grade on what they've built, and then they realize, oh, shit. This is either way too conservative for me, or it's way too risky. Typically it ends up being much more riskier than the person really wants.

Kevin Dougherty: Because Joe, because Joe Joe Public doesn't know.

Kenny Polcari: That correct.

Kevin Dougherty: What the risk of something is. Well.

Kenny Polcari: Correct.

Kevin Dougherty: They're really great. They've been.

Kenny Polcari: Because Netflix is probably in the 90 range. Nvidia is absolutely. If Nvidia is not a 99, it's a 95 right? But yet. Then you take a stock like General Electric or Bank of America. That might be a 68

Kenny Polcari: versus the market, right? And so and so a lot of people don't necessarily know that. And you're going to only know that when you talk to an advisor that has those tools that can say to you. Here's what it is, and listen, and whether I manage your money or not, I'm going to give you enough information that you can tweak it and kind of draw down or raise up your risk, based on kind of the conversation we have.

Kevin Dougherty: Yeah. And so like. And I'm sure, like Tesla right now, stocks are probably a little more volatile than.

Kenny Polcari: Nineties, I'm sure.

Kevin Dougherty: Oh, yeah, yeah. And I pointed this out to somebody the other day, because sometimes, like you said, the markets are reactionary. The markets also aren't how the actual business is doing. Some of the more stable ones are.

Kenny Polcari: Correct.

Kevin Dougherty: So when you're

Kevin Dougherty: when there's some bad news out there, and people get a bad gut feeling it might have nothing to do with how successful that business is. Like you were talking about with Apple. Apple's a hundred 1 billion a year. It's like, Oh, they went down to 99 billion like.

Kenny Polcari: A 100 billion, a quarter.

Kevin Dougherty: Quarter of.

Kenny Polcari: 400 billion a year.

Kevin Dougherty: Right. So they go down one quarter by a billion dollars. It ain't the end of the world.

Kenny Polcari: It's not, and it's so, not the end of the world. It is so, not right. And that's the funny part about it is, you know, the estimates were for 100 billion, and they only made 99.2, and everyone goes. Oh, they missed the number

Kenny Polcari: kidding me. Think of that. Just think of the number! Think about the amount of zeros on that number, I think to myself, these people are nuts.

Kevin Dougherty: Apple brings in more in a quarter than we have in our defense budget. Isn't that like, aren't we like? Aren't we like 89 billion a year or something like that.

Kenny Polcari: I think I think so. Yeah, it's crazy. It is absolutely crazy that that's that people react like that. I was going to tell you something else. Wait, let me just think about what I was going to say to you.

Kevin Dougherty: Sure.

Kenny Polcari: Just about that whole idea of investing.

Kevin Dougherty: Not Tesla.

Kenny Polcari: Okay, well, let's talk because it'll come back to me, because.

Kevin Dougherty: So so this is something I pointed out. So did you you hear about Kia? Right like how how Kia has, like their new cars can be like hacked with pretty much any smartphone.

Kenny Polcari: Yeah, yeah.

Kevin Dougherty: Yeah. And so what happens is like, I'm sure it had an effect on Kia stock. And I didn't do any research into that. But I know people that just recently bought Kias, and they just call their agent and say, Add it to my plan. Send it over to the Dmv. And then, you know, they they have their registration, everything all taken care of at the dealership, and they walk out with their new Kia, and then come to find out when they get their bill in the email or in the mail, or whatever that they're now paying like an extra

Kevin Dougherty: one to $3,000 a year in insurance, let alone what the stock is, and I have a feeling where, like Tesla's stock, will come back up after this whole like. After Elon steps aside from Doge and goes back to running his companies. It'll it'll die down like anything else in the political market.

Kevin Dougherty: But what'll happen is, there'll be so many insurance claims against Teslas that what's going to happen is it's going to be cost prohibitive for a lot of Joe homeowners to buy, because I want to buy a Tesla. I think they're really cool, but I know that what's going to happen is that they're going to hit me on the insurance side.

Kenny Polcari: Why? Because you because what you're saying is that somebody? If somebody attacks your car, then you have to have it fixed. Is that what.

Kevin Dougherty: And so some underwriter at major insurance car companies are going to underwrite the hell out of it. And it's gonna it's gonna be like owning a kia. You're too risky, and they're going to charge you on that back end, which is gonna eventually discern sales so it might not affect the stock price, but it's going to affect Tesla's sales price in the long term.

Kenny Polcari: Right.

Kevin Dougherty: Because of this little incident, and eventually it'll probably level out and it'll come back down. But.

Kenny Polcari: I don't view this as a little incident. I think these people that are destroying Tesla cars like that. I think every one of them should have the book thrown at them. How dare you? It's beyond me that because, you know, Tesla, the funny part about it. There are cameras all over Tesla. You get recorded every time you do, which I think is the funniest thing.

Kevin Dougherty: Right. And that's innovation. There's there's capitalism right there.

Kenny Polcari: I think they should. I think they should throw the book at everyone. Listen whether you like Elon Musk or not. There's no reason for you to go out and destroy my Tesla 0. 0 reason for you to do that.

Kevin Dougherty: Do you own the Tesla.

Kenny Polcari: I don't own a Tesla because I live in a condo, and I don't have a I don't have a garage and all that. There's no like there's I don't. I can't put the electricity in here. I'm not. Gonna you know. I'm not going down to the wall to the local parking lot to plug my car.

Kevin Dougherty: The publix, or wherever.

Kenny Polcari: But I'm not doing it. But

Kenny Polcari: But what's interesting is that you know Tesla is more than just a car company. Right? People think, Tesla, they think it's a car company. It is so much more innovative than a car company.

Kevin Dougherty: Before I buy a 10.

Kenny Polcari: Me an optimist.

Kenny Polcari: It's just one of the things they do. But Tesla is. Tesla is an amazing company for sure. But yes, at the moment it's it's under pressure, because everyone's screaming. And you know the far left is screaming about about Elon Musk and Doge, and you know all the fraud that he's finding, which, by the way, I would think most people would be, would be happy with finding all this excess waste.

Kevin Dougherty: I think it's the spin. I think it's the spin, because then they put a spin on it, and they say, Well, no, he's not finding fraud. He's coming after your social security.

Kenny Polcari: He's not coming after your social security.

Kevin Dougherty: Right, which is the 3rd rail of politics. I listen to a lot of Ben Shapiro, too, and I mean, that's that's it's the dumbest thing you could ever do is to come in. I mean

Kevin Dougherty: a smart like, just like tearing the Band-aid off with China right? Somebody's gonna have to tear the Band-aid off. Things are going to get a little dicey with China, and then the markets will level back out. Once we fix the problem, it's like Elon's strategy. With everything he comes into a company, he breaks it, he tears it apart, he makes it more efficient. He does those layoffs, and then it functions better, just like we talked about with big industry. And that's going to have to happen with China. You have to come in. You're going to have to lay the hammer down. You have to break a bunch of things, fix it.

Kevin Dougherty: and then come back, and you're better for it in the long run. I think that has to happen with social security Medicaid all those things, but I don't think it's happening today.

Kevin Dougherty: but it's I think it's coming to a head.

Kenny Polcari: Listen. It has to happen. And look, I'm right at the point where I'm about to start collecting social security at some point. Right? I'm 67. I'm so I'm 3 years away. But I'm 67. So I'm getting close to.

Kevin Dougherty: Thought you were 64.

Kenny Polcari: No, when I'm 67.

Kevin Dougherty: Oh, oh, okay. Wait.

Kenny Polcari: Hold on 1 min. Put this on hold for a second.

Kevin Dougherty: Sure you're muted.

Kenny Polcari: So. But the whole social security thing look so in a couple of years, right? I'd be ready to. I'd be ready to collect social security. Actually, if I wanted to, I could start collecting now because I am 64, so I could. But it doesn't make sense for me to do it now right one way or the other, one way or the other. When I hear things that you know, the checks are still going out to people that are supposedly 150 years old. It infuriates me, and it should infuriate every American out there.

Kevin Dougherty: Of course. Yeah.

Kenny Polcari: Why it's not is amazing to me.

Kevin Dougherty: Right, and it's. And then people say, Well, it's small potatoes.

Kenny Polcari: It's not small potatoes.

Kevin Dougherty: It's small. It's big potatoes, for, like a small little town like I where I live. But it's small potatoes in terms of like the giant overspending of the major government. But.

Kenny Polcari: Okay, but it's still money going out the door to people that shouldn't be getting it.

Kevin Dougherty: Sure. No, no, I hear you. No, I I completely. I completely get it. I think there needs to be audits all the time.

Kenny Polcari: 100%. So I don't know why. There's, you know. I don't know why there's this big. Why, there's this big pushback from the left going? Oh, no, no, he's going to destroy. He's not destroying. In fact, if you get rid of that waste, you're actually strengthening social security.

Kevin Dougherty: Right? Yeah. Because now, all of a sudden, there's more money that could potentially get redistributed.

Kenny Polcari: 100%.

Kevin Dougherty: Cola, or any of that other stuff.

Kenny Polcari: 100%.

Kevin Dougherty: And and so that's and the other thing that I always hear from people is well, I've been investing my whole life, and I want my money back, and it's like you've been investing. And you're going to end up getting more back than you put in. And that's the issue with the system, especially because

Kevin Dougherty: what was it.

Kenny Polcari: People live longer, they live longer.

Kevin Dougherty: When social security got created, the life expectancy of a human being was like 59, and 57. And so, like you got to claim it, like maybe partially at 62 and a half, or fully at 65, and most likely you were dead. So like you like people, miss that point. And it's like, now we're living to. What's 78 is the average female.

Kenny Polcari: Listen, I laugh. My grandmother started collecting at 62. She lived to 103, and she was completely with it right up until the day she died. She collected social security for 40 years.

Kevin Dougherty: Right.

Kenny Polcari: Right. It was unbelievable.

Kevin Dougherty: Right? Almost, we're talking like it's a it's a that's a 60, 40 split like she worked for. She worked for 60% of her life. And then, you know, and it's 1 of those like, I think, also retired like

Kevin Dougherty: I hate to have to keep quoting, like, you know, one group of people or whatever, but, like Ben Shapiro, pointed this out like people, people retire, then they die. There's a lot of people that do do that because they don't find.

Kenny Polcari: Same, a hundred percent.

Kevin Dougherty: You keep yourself busy like, because you're like, Hey, man, I you might. You might actually be partially retired, or whatever, because it's like you don't have to work, but you do, because you found something that's interesting to you and like you get somebody who's like, Hey, you know. Well, I might not, I might be retired, but I take care of my grandkids, and they give themselves purpose. You lose that purpose, and then you're just.

Kenny Polcari: 100%, which is why you don't.

Kenny Polcari: Which is why I love doing what I do. Because a. I love having conversations like this because A, I think it's important. And BI think it helps educate people, especially. Obviously, the younger generation. That kind of needs to hear it and understand it and all that stuff, but I find I find it to be for me mentally stimulating, right, mentally stimulating to continue to have these conversations. And so I think it's great.

Kevin Dougherty: Yeah, no, and my dad's chiropractor retired when I was. I think I was still in middle school, and my dad would talk about how Mr. Dodd retired, and he was like angry because my dad would have back problems. And he went

Kevin Dougherty: and retired. And a week later he was dead.

Kevin Dougherty: He died. Yeah, yeah, they die a week later, and it's you know, it's kind of depressing, and it's like, man I I don't. I have my my most of my actually, most of my portfolio is probably in real estate. So that's a large portion of it, which I mean. That's 1 of the most conservative things you could probably buy, I would assume. Besides.

Kenny Polcari: Well. But listen. It's also illiquid, right? If you needed money really quickly, it's Illiquid. You can't really get it that fast in the event that you needed it right. And in the stock market, if you need money tomorrow I can sell button, sell some stocks, and tomorrow you're going to have the cash. So that's what you just have to understand. If you own a lot of real estate which is great, then you should make sure that you have a cash kind of emergency Fund account that you have, in the event that you need cash unexpectedly.

Kevin Dougherty: Right? Right? Yeah, yeah. Furnace breaks, or whatever, in case you know you're not me, and you can't fix it yourself. Right? Correct.

Kenny Polcari: Correct. Yeah, I mean, listen. Certainly, there's nothing wrong with owning real estate. Let's be honest, right? There are people that billionaires that started just owning real estate haven't been in a stock their whole life, but if you don't have the ability to do that, and you want to start to build a portfolio that's going to create and build generational wealth. Then there's how you start.

Kenny Polcari: Right? Yeah, for sure.

Kenny Polcari: You know.

Kevin Dougherty: So I feel like there was is there anything else that you can think of? Kenny?

Kenny Polcari: No, we've been talking for a long time. You and me.

Kevin Dougherty: Yeah, I know

Kevin Dougherty: I'd love to have you back on. I I don't want to burn out your whole Saturday.

Kenny Polcari: No, no, I'd be, you know we should plan on coming back on, you know, 6 months from now we'll see where the market is, we'll see what it's done. We'll see what the geopolitics has done to the market, and all that. It'd be great.

Kevin Dougherty: Yeah, we can. Maybe we'll start a segment where we'll do a prediction.

Kenny Polcari: I'm happy to do that.

Kevin Dougherty: We'll do. We'll get a prediction going, you and me, and then we'll maybe we'll do a we'll do like a bet, you know, like we'll say, Hey, you know, friendly dollar, or whatever, and say, Okay, well, I think this this portfolio of stocks is going to go this way. Maybe you think it's going to go the other way?

Kenny Polcari: Correct.

Kevin Dougherty: Try to fix something we we might disagree on, because that's always. That's always the the spice of life.

Kenny Polcari: Right. That's always the spice right to disagree, and then see who comes out on top.

Kevin Dougherty: Right, right? And it's and it's and it's all it's all in good. It's all in good fun. So yeah, for sure.

Kenny Polcari: Well, listen. Have a great day. Thank you for doing this. I really appreciate it. I hope your audience appreciates it, and I'm happy to do it again with you.

Kevin Dougherty: Alright awesome, Kenny. I appreciate it, and I will. I'll be in touch with you some of that other stuff we talked about like distribution and things like that. So.

Kenny Polcari: Yeah, perfect. I'd like, yeah, I'd like to have that conversation. We'll do it offline.

Kevin Dougherty: Okay. Sounds good. All right, Kenny. All right. Gang. Well, this was Kenny Paul Carey. And we appreciate you tuning in today. And we will see you guys next time on life 22.