Ep773: Coach JV – Diversify Inside and Outside the Asset Class

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Quick take

BIO: Coach JV believes that what you believe in your heart and what you think in your mind will eventually become your words and reality.

STORY: Coach JV was introduced to cryptocurrency and decided to invest without an exit plan. In just a year, his investment had fallen by 85%.

LEARNING: Diversify inside and outside the asset class. Pull out your money and play on the house money. When you make massive gains, take some profit.


“Always take 24 hours to make a decision. When somebody comes to you very excited about something, stop for a moment, listen, use discernment, and also seek wise counsel.”

Coach JV


Guest profile

What you believe in your heart and what you think in your mind will eventually become your words and your reality. If you can see it in your mind, eventually you can hold it right here in your hand; what you repeatedly do gets ingrained in your subconscious mind, and what gets ingrained in your subconscious mind becomes your unconscious activity.

Worst investment ever

Coach JV left corporate America super excited about entrepreneurship. However, he didn’t understand the ins and outs of entrepreneurship and scaling. So, at the very beginning, Coach JV lost all his money.

Then, this great promise of cryptocurrency came into Coach JV’s life. But he had this deep-rooted indoctrination around those types of things. Nonetheless, when Coach JV was introduced to a coin called XRP, he got curious and started researching it. He saw the excitement of all the money being made in cryptocurrency. He also decided to invest heavily.

Coach JV made a lot of money from his investment and couldn’t even keep up with all the different coins being pumped at him. Coach JV even became influential in the space.

Unfortunately, he got into this speculative asset with no game plan. Then, suddenly, and it seemed like overnight, he woke up and was down 85%. Coach JV went from a millionaire to a thousandaire between 2021 and 2022.

Lessons learned

  • Diversify inside and outside the asset class.
  • Pull out your money and play on the house money.

Andrew’s takeaways

  • When you make massive gains, take some profit.

Actionable advice

Always take 24 hours to make a decision. When somebody comes to you very excited about something, stop for a moment, listen, use discernment, and also seek wise counsel.

No.1 goal for the next 12 months

Coach JV’s number one goal for the next 12 months is to stay non-emotional about what’s happening in America, remain focused on his fundamentals, and be as keen as possible not to get caught up in the greed gene.

Parting words


“Remember what you believe in your heart and think in your mind will eventually become your words and your reality. If you can see it in your mind, eventually, you can hold it in your hands. What you repeatedly do gets ingrained in your subconscious mind. What gets ingrained in your subconscious mind becomes your unconscious activities.”

Coach JV


Read full transcript

Andrew Stotz 00:02
Hello fellow risk takers and welcome to my worst investment ever stories of loss to keep you winning in our community. We know that to win in investing, you must take risks but to win big, you've got to reduce it. Ladies and gentlemen, I'm on a mission to help 1 million people reduce risk in their lives. And I want to thank my listeners in Arizona for joining the mission. And fellow risk takers this is your worst podcast host Andrew Stotz, from a Stotz Academy, and I'm here with featured guest, Coach JV coach, are you ready to join the mission?

Coach JV 00:39
Oh, it's an honor. Man. I'm excited. Thank you so much.

Andrew Stotz 00:43
I'm looking forward to it. And you definitely get the reward award for the most unique bio. And ladies and gentlemen, let me introduce the thinking of coach JV. What you believe in your heart, you think in your mind will eventually become your words and your reality. If you can see it in your mind, eventually you can hold it right here in your hand. What you repeatedly do, gets ingrained in your subconscious mind. And what gets ingrained in your subconscious mind becomes your unconscious activity. Coach, take a minute and tell us about the unique value you are bringing to this wonderful world.

Coach JV 01:25
Absolutely, first of all, it's an honor to be here. And the unique value that I bring is my past and my current perspective by losing a lot of money in these investments. So the unique perspective that I bring is me and my CFO combined spent 22 years in banking. I went to CB executive banking school became educated, educated in the banking sector moved up to Vice President of bank when I was sitting in the banking sector, and I started to really learned what the Federal Reserve was what money was in America. It didn't make me feel good. And so I end up walking out of a high paid vice president job in 2017, to start this journey of entrepreneurialship. Being an investor. And through that process, through my losses, I've discovered waves of energy and how energy moves through the system. And how what we repeatedly do gets ingrained in our subconscious mind. What gets ingrained in our subconscious mind becomes our unconscious activities. And then a lot of people are unconsciously investing unconsciously living their lives, trading time for money. And so what we teach people to do is how to move from that just over broke system, that job system to trading time for money to using time to or excuse me, using money to free up time. So that's a unique perspective. We bring a banking sector, the spiritual energy, but also really understanding our mistakes have become our greatest successes. And

Andrew Stotz 02:39
where do people mainly either follow you or find you? Oh,

Coach JV 02:45
great question. So one of our biggest things is on YouTube. So if anybody types in coach JV like Junior Varsity, on Google, all of our stuff will come up YouTube, Tik Tok, Instagram, Twitter, that's the best way to find us, Google the name, Coach JV and all of our content will come up.

Andrew Stotz 03:00
And when somebody likes what they hear, like what they see, what is it that you, you know, that you provide? What's your service? Or what is it? How do they engage with you? Absolutely.

Coach JV 03:10
So we have what's called the three T warrior Academy. So it's one, we have a lot of free content as well, we have a 16 page free guide, we have free consultation with our licensed insurance team, but most of the people engage with us through our private community, the 3d World Academy, which is a community from a loose holistic approach from the inside out fitness mindset, subconscious mind programming, goal setting, rewiring the foundation, and then learning how to do diversification within these markets.

Andrew Stotz 03:36
So maybe you can just give us an example of a type of person maybe an example of a prior client of yours or generally what clients are looking for, and then maybe one or two little tips or tricks that you help them to get them on the right path.

Coach JV 03:52
Yeah, absolutely. So our average age group is 35 to seven years old income is from 75 to 250,000. It's that person who's in corporate America, just like I was sitting there, and like, they're seeing what's going on within the economy. They know there's something different out there, but they just don't know what to do. Because like I said, we've been indoctrinated for such a long time within America, specifically around how to be workers, right? So when you think about investing, or you think about starting a business, you think about getting in stock market or crypto, it's what is the next step and so what we help people do is take a deep breath and we help them relax and take the next step. But the key to it is we're teaching people how to rewire the foundation out of the indoctrination so they can make better decisions that is the key. So it's that person just like me that was sitting there in corporate was a executive banker and still didn't truly understand how money ran through the system. I was in a vertical system, went into school, got a job had a 401 K, keeping up with the Joneses, right had the big house the nice cars and stuff, but I could barely pay my bills. So it's that person that knows or something more, but they just don't know the next step and we teach them step one, all the way through a to z all the way through to diversification to financial freedom. And

Andrew Stotz 05:03
I can imagine someone who's sitting in the position that you've just described, come across your teaching and what you're doing. And the biggest issue I suspect that they have is fear. Because there's comfort in that vertical. There's comfort in that job, there's comfort in that 401 K, you're doing the right thing. You're doing what you're supposed to do. And going, you know, and looking and going into that. Not only that, but you also have, there's some rabbit holes, I remember, JV that when I, when my father was older, I was talking to him and I was talking to him about what I was learning about the assassination of John F. Kennedy. And, I realized that my dad just didn't want to go there at that point, like, there just was no point in his life was almost over. And he didn't want to open up a Pandora's box that it wasn't, you know, who he was told it was? Because if it wasn't, who he told he was told it was, then that just causes a collapse in trust in the whole system. So I'm just curious, how do you handle those people's fears or doubts, or how do you guide them? Yeah,

Coach JV 06:12
imagine Wolf. Imagine a world when I was in banking school in 2012. I started CB executive banking school. And I'm there and I asked a question, so I have severe dyslexia. So I really have to pay attention. So I, I'm that guy in school that asked all the questions. And so I was met with a professor afterwards, I said, I have a question. So I'm watching how we scale banks from the ground up, you know, I understand Mrs. Jones walks in and puts $10,000 into our bank, we as a bank, lend out, basically, if she puts in $10, we lend out nine of those dollars. I'm like, how does that work? I'm like, we lend it to the next person walking in and that $9 gets multiplied over and over and over again. And the professor said, that's the way it always has been. And I said, but that doesn't mean it's right. And he actually recommended that I read a book called the Jekyll creature of Jekyll Island. So that's where that like you just said, it's, I read the book. And now here I am sitting as becoming an executive banker. I understand what the Federal Reserve is a group of wealthy bankers that created a bank for the banks that are supposed to balance out the job markets, and they're responsible for the money supply. And I'm like, wait a minute, this makes no sense. Then I started to really understand how the most so when I, when I share with something, what money when I share with people ask them the question, I say, what is money? And most people think money is just something that you get to pay your bills, but money is just debt. That's all it is. In America, it's debt monetization. So what I work to teach people to do is like, Okay, if money is just debt, and my income is your debt, then what side of the equation should we be on? So we start there, and I teach them what is money? It's just debt, and teaching, I really look at that. And I asked them, I always take it from a complex macro microeconomics and I say, pretend you're America. Okay? Let's pretend we're America. So I'm America. And if I was 130%, debt to income ratio, GDP to debt, okay, if I had to go borrow money from grandma and grandpa, and they ran out of money, now I need to go to my uncle and my brother and they ran out of money. Then they finally downgrade me from triple A to A plus, okay, listen, this money you're borrowing, it's actually going to cost you more. So now I need to go borrow money from someone else to pay the interest that I owe grandma, and my brother. So what would happen to me and they're like, well, you'd be bankrupt. I said, Yeah. I said, the difference would only do between you and America's they get to turn on a printing machine. You don't. You have to go on us. Whatever government support you have to get. We have to file bankruptcy. I said, so now that we understand who America is and who we are within America, how can we get on the other side of that equation? So that's how we start the conversation just to say, let's take it from America being us. And let's start there. And so then we look at their finances like Okay, so let's look at where you're at. And people be making $40,000 a year, and they have a $60,000 car. I said, so let's logically take a look at that. I said what got us in that situation? While I was able to borrow the car at 74 months. And so I said then we start there since now we need to start making different decisions. So that's where the rewiring of the foundation comes in. When I start to teach people we need to get on the right side of the Cashflow Quadrant, right. Robert Kiyosaki. We teach them that we also need to teach people what debt is to you know, there's different all great teachers as well you got Dave Ramsey, who is you know, all cash, no debt. You got Robert Kiyosaki, who's all debt, no cash, you got Grant Cardone all real estate, no cash and like, you have to really ask yourself, what works for you. For me, it's a mix of enough to pay my bills for six months. And then I use debt to build businesses too. I use debt to get tax free income to buy assets. But you can't start there with people because if you say, well use debt, to get cash to buy assets, they're like, What are you talking about? So we stopped for a moment say what is money? So once we teach them what money is, then we ask them, Where is your money flowing? So that's where we start the conversation with people. Because that's where I was I left banking at a CB executive banker and I didn't understand what money was. I was buried in debt. I had the huge home on a golf course at the 534 I've heard BMW, the big SUV making a quarter of a million barely making it. So how was I able to how am I able to properly educate people when I didn't even know what money was. So I've spent the last since 2017, to 2024, really studying what money is, and then the cycles that they take. So that's why I say, what you repeatedly do gets ingrained in your subconscious mind becomes your unconscious activity. So in order to change my unconscious activities, I had to change my subconscious, I had to change the deep rooted indoctrination. From the schooling system, I think we're just talking about this, like, I'm taking my son out of the schooling system. And I'm, I teach my son about money, I teach my daughter about money. So yeah, it's just it's almost like not not in a condescending way. But when I am sitting there with a 45 year old adult, I'm like, um, we're going to talk like, we're going to talk like, you're just starting out learning about money. And they appreciate that because it's like, Oh, that makes sense. So it's not that complex. It's not that complex, we just have to start to understand what money truly is, which is debt in America. You

Andrew Stotz 10:56
know, I was having a conversation with my mom. And I'm sure she's going to be listening to this. So I'll repeat it. But she and I were talking, she, as she's gotten older, as you feel some regret. Like she was a little bit tough on me by kicking me out when I was 17, almost 18. And she said, you know, maybe I made a mistake. And I was like, it's the best damn thing you could have done, because I went out and became a man number one, but number two, now that I think about what you're saying, I had no money. I had nothing. I had a little moped I lived in, in Ohio, I went, I live near Kent State University, but I have no money, I have to live in a little a room within a house that I rented for $120 a month. And I rode that moped one hour to a factory where I worked for $3.35 an hour. And I did that for a couple of years until I could finally get myself into university, and then finally, educate myself. But I've always lived deeply below my means deeply. As my income rose, I didn't increase my spending. And so I've, I've stayed in the same apartment, and I never bought a house here in Thailand. And I stayed in the same apartment for 20 years. And basically, the cost of that apartment is absolutely tiny. And it just brings me so much comfort to live deeply below my means. And I was just teaching a class at university, about my book, How to start building your wealth investing in the stock market. And I was like, you know, the first thing you have to understand that a job can be a wealth machine. If you're making $100,000. And you're spending 95,000, well, you're dead. But if you're making 100,000, and you're spending 40,000, that is $60,000 a year of wealth that you created, and you put it in your bank as a starting point. And then later, you look at the stock market and other investments of how do you grow it, but just creating wealth can be done through salary, it just said, You've got to take a different mindset. And so I appreciate what you're teaching.

Coach JV 12:57
Yeah, thank you. Yeah, that's, that's one of the things too, you brought up the bank is like what I explained to people when they understand what money is, and that so when I when I tell, you know, I'm 48. So I'm sitting across metaphor, two years, or 48 year old, they're sitting there with 150,000 in the bank, I say, so imagine a world putting $150,000 in the bank, and your money right now is sitting in someone else's bank account or like what, like your money is sitting in someone else's bank account, the banks, actually, they make money in three ways interest income fee income and capital markets income at a base level, right? So they're taking the money they're using third parties are making six to 12%. And they're giving you negative 1%. They're like, Well, why can I do that? I'm like, Well, you can, you can. And so then it goes into, like diversification, risk allocation. And you know, that's, you know, cryptocurrency that's where we've built a large amount of wealth. But that's was one of our worst investments, because we did not have an exit plan. And so everybody's, this is the thing that I tell people too, because there's so many boom and bust cycles, the auto boom, the.com, boom, the crypto boom, the AI booms come in. And so everybody, they're in this vertical strategy. And then they see these booms come. And they're like, they're, you know, they're at the gym or at the barber shop, and this new thing comes in, then they take this big allocation of their cash, and they put it into this one asset class. And there's no game plan. And that's where I'm trying so hard to teach people it's like, there is no get rich quick, there's getting wealthy for sure, by understanding economic cycles and how money moves through the system. And that's the one of the other things that we teach us. How does money move through the system and we made money currency, right, the bank dams it up, we make it current, we will make sure that when money hits our bank account, to make sure we have enough in the bank to pay the bills, to support our family, things like that for a couple of months. And then every bit of money that hits my account, it has to flow through the system like it has to I love the book, richest man in Babylon, a little bit of a harder read. But once I read that, I'm like, wow, every time money hits my bank account, I create a brother or sister and like, Okay, where are you going? Like, what how are we going to multiply this what seeds are we're going to plant so that's pretty neat. Once people understand money, and then you contextualize it and you say, okay, money is just an N exchange of energy. It's just an exchange of energy for value. I love that how you said that because a lot of people think my greatest wealth has come from entrepreneurship. And you know, scaling and things like that, but not everybody's been on, you know, here we are two o'clock in the morning, right? It's like two, three o'clock. entrepreneurship is not an easy journey. But as I was making quarter of a million, as an executive, and I was still broke, I was broke.

Andrew Stotz 15:23
Yeah, and that's where I think one of the big lessons from all of this in my life and from talking with you is the idea, I call it your wealth engine, you've got to get that cranking. Because you can't you can't grow your way to wealth, you have to create wealth. And that wealth is either created through a job, or it's created as an entrepreneur. But since most people are just not cut out to be entrepreneurs, then it's best to just focus on creating that wealth through a job. Well, now it's time to share your worst investment ever. And you've already hinted at it a little bit. Since no one goes into their worst investment thing it will be tell us a bit about the circumstances leading up to it then tell us your story. Yeah, so

Coach JV 16:05
I you know, I left corporate America super excited, you know about entrepreneurship and I got the crap kicked out of me to be honest with you, I ended up leaving I had a 401k You know, I was an executive for quite a while I had a very comfy plenty of money in the bank account 401 K, and I leave to start this entrepreneurship journey. So my first thing was, I didn't really understand the ins and outs of entrepreneurship and scaling. So the first thing happened is I lost all my money. But then this great promise of cryptocurrency came into my life. You know, somebody came walking into one of my facilities, we got shut down during the pandemic. And they were like, Hey, have you ever heard of this? You know, crypto and banking, we were indoctrinated at a deep level that crypto was a fraud. Right? In 2017. Jamie Dimon had said, you know, it's used for money laundering, if you touch it, you're gonna get fired. All this stuff were in the banking system. And so I had this deep rooted indoctrination around those types of things that there were pet rocks and all this stuff. And so when I saw it, though, I was introduced to a coin called XRP. And I'm like, Why aren't banks using this? Why wouldn't banks use this liquidity, this distributed ledger technology on demand? Well, then I started researching and they are a lot of Mar using jpm coin, have all these so I go really deep into research. Well, then I saw the excitement of all the money being made in cryptocurrency and ended up being what has become one of my best investments became my worst investment ever, because I go into this speculative asset with no game plan, just like everything else putting my money into a 401 K, I go into cryptocurrency, and we started making so much money. And there was tons of money coming in, there was yield, there's things called yield farming, and there was leveraged trading and all these things that we couldn't even keep up with all the different coins being pumped at us and stuff. And then we started to become influential in the space, you know, I was kind of taking people through my journey from going broke, I lost everything because pandemics shut me down. So this cryptocurrency portfolio, and my worst investment ever was having cryptocurrency with no exit plan. So we actually saw ourselves go from millionaires to 1000 shares overnight from 2021 to 2022. Literally, I remember waking up and I had pulled some profits, but we did not have a proper exit plan. And all of a sudden, I remember waking up and it seems like it was overnight, I wake up, and I'm like, it was down 85% Now the problem with this is and I take responsibility for this, we were hyping this up and we're super in everybody's we're all adults trying to figure this out. And we have this opportunity, a big boom, and we're pumping our money into this vertical. So we're pumping our money into it's gonna make us rich and this influencer said this and this influencer said this. And next thing you know, we're all sitting there holding the bag. We're like, how? So what that did was is it really made us take a deep breath and say, what is our intentions with this? Like, what are we trying to do? And so we started to focus on what our intentions are is financial freedom for our family, freedom of choice, freedom of time and freedom to build the ecosystems that our families deserve. And we realized that we have to step back further. We did pull some profits, which helped us tremendously, we were able to invest in companies which were so we sat back and we said, how does this work? And so we started going deep into history. I love Ray Dalio is changing world order. And then we just started to see the waves and cycles, whether it's the Bitcoin halving, whether it's World War Two, whether it's the.com, boom, whether it's the 2006 2007 collapse, and I started to study waves of energy. And so our worst investment was crypto with no exit plan. And that's why I've been boldly stating this to people over and over again, because it's coming again. We're back we're on the back end of 2024. It's going into its four year cycle. And there's so many people that have not been indoctrinated themselves, and they think they're gonna get rich quick, and people are going to put their life savings and they're the worst people mortgaging their houses. And then all of a sudden we saw them come collapsing down. So our worst investment actually became our best lesson which made us wealthy.

Andrew Stotz 19:55
And how would you describe the lesson like the core lesson that you learned from it? core

Coach JV 20:00
lesson diversification, diversification diversification inside the the asset class and outside the asset class, great,

Andrew Stotz 20:08
great lessons. Maybe I'll share a few things. I've actually been out a CFO of a crypto exchange here in Thailand, where Thailand is a regulated market, the exchanges are heavily regulated by the SEC. And so my focus has ultimately been about finance and compliance as best that I could, you know, over the years. But yeah, I was just looking at the numbers, the crypto winter that we went through, was brutal for everybody. And Bitcoin fell by 72%. From what I remember, from the end of 2021 till the end of 2022. So it definitely was a brutal time. There's a couple of things that I take away from it, you know, the first thing is that one of the lessons that I've learned in my life is that when you make massive gains, take some profit. Yes. And so that's, you know, there's diversification is critical, as you said, but there's also the idea of taking profit. Now, for portfolios that I have in Thailand for my clients. Basically, we kind of force a quarterly reconsideration, where we're rebalancing and taking some of the gains and putting into things that have gone down a bit. And that helps us from getting over extended, the other part of diversification, is just making sure you're not overly extended to any one asset class, particularly, what I use is stocks, bonds, commodities and gold. And, you know, being over, you know, heavily weighted in gold or commodities is pretty, pretty extreme. When you think the core thing, what I really want is I want to own stocks, because every company that I own in the portfolio, has a CEO working his butt off, to prevent the company from, you know, seeing its margins go down or losing market share. And it's got a management team. And if I own the s&p 500, I have 500, co CEOs busting their butts with 10 people on their team, I can, you know, 5000 people working for me every single day. And so that's nothing can be business over the long term. So just be careful when we diversify to don't go too heavy into, you know, and I think that's one of the things that I see people do is they get excited, or their gains get so big, that they're really, really heavily weighted. And that's the time to take some profits. Any anything you would add to that.

Coach JV 22:44
Yeah, there's so much to unpack there. I love what you said. So the things that we teach, first of all, is if you walked into a casino in Vegas, and you put down $1,000, and you win $2,000 You should always pull your house money or pull your money and play on the house money. So we always tell people pull your initial investment, especially in crypto, it goes up so quick, your it's easy to pull your initial investment. So now you're on house money, right? Take your initial investment, maybe I'll create another asset class said so many powerful things or if you look at, like diversification, so we I read the book intelligent investor, I think it was the one Warren Buffett Warren Buffett read when he was 12. And he switched from investing in stocks, stocks to investing in companies. And so yep, so we adopted that within cryptocurrency. And so the way that I allocated and diversified within crypto is looking at cryptocurrency companies that I can study the CEO, the CFO, I look at the board of Directors, does it have a real world solve? Right? Does this actually have a real world solve? And is it going to be a regulated regulator survivors but we call American regulation? Is it going to survive American regulation? So when we do that, and then one thing that I've developed is, we actually developed an app called Merlin the smartest way to track your crypto, which is an exit strategy. So we got hurt so bad in the markets that we've developed, we do what's called a ladder out, because what we know two things, number one is the hype train kicks off, and the exchanges shut down. They're getting liquidated, right? All of a sudden, there's technical issues. And you know, you're at the top of a chart and all of a sudden, you're a millionaire. And you can't pull profits right in there. Oh, technical issues. We're overloaded, the server is overloaded. So what we do is we set exit targets based on the all time high, the previous all time high. And then we exit on the way up, we ladder out now for me, when I exit the markets I look across I'm pretty diversified in business as the CEO of multiple companies. So in a lot of it to be transparent. A lot of my wealth comes from business and like you said, because I get to control the levers, I get to pull the levers. What I use is tier one capital so I love to invest in cash value insurance, so I use insurance. I'm diversified across business, a little bit of precious metals. I love what you said about precious they can be manipulated by the banks as well. But so precious metals, and then we focus on cryptocurrency, and that's one of the biggest things, but for me, it's a ladder strategy. I exit on the way up and I just do the opposite. To have the 99% I buy when everybody's freaking out panicking, I buy when there's blood in the streets, Warren Buffett, and I sell when everybody's celebrating, but my favorite story of Robert Kiyosaki and I'm gonna paraphrase this. But he says, when he sit in the grocery store, and everybody's talking about getting rich in real estate, he's starting to sell some real estate. So when I'm sitting in the barber shop, getting my beard done, or I'm in the Steam Room at the gym, and I started hearing people talking about get rich and crypto. When the conversations pick up, I'm like, it's time to start exiting. And we start pulling profits. And so you know, we just pull in, we always look at the opportunity cost of our money, right? So if we pull $100,000, you now have $100,000, I call it for Ghazi fake money, fiat money, like where can I move this fake money to something tangible that I can and I like to leverage against my assets, tax free. And so that's something that we help people understand as well. It's like, how, how can you get into assets that you can leverage tax free? Because that's something as well, when people pull crypto, they don't they don't understand the tax implications as well. So yeah, so I love what you're saying we always exit on the way up now. We're not married to crypto, it's extremely I want to tell people a cautionary tale in America, it's so speculative still, the great thing about that is you can make a lot of money if you have a game plan. Exactly.

Andrew Stotz 26:14
So let's go back in time to when you got into your worst investment ever. Obviously, you know, you, you thought you were doing the right thing. And but you were pushing risks and pushing other things probably farther than you should have. And so let me ask you this question. Let's think of a young person right now, today, who's approaching a similar situation. Based on what you learned from the story. You've just told us as well as what you've continued learning what's one action that you'd recommend that person take to avoid suffering the same fate?

Coach JV 26:49
Yeah, one action I would take is always take 24 hours to make the decision. That's what I would do is because when somebody what I realized is when somebody's coming to you very excited about something, right, that's the thing was like, Have you heard of this? It's like, stop for a moment, listen, use discernment, and also seek wise counsel. So take 24 hours and then make sure that the person coming to you is wise counsel. Right. You know, they may be excited about somebody told them something but often I found you know, I'm mentoring with wise counsel now. And wise counsel doesn't come to me and call me at two o'clock in the after JV, I got the hottest deal right now. We set up a zoom call. We talked about the investment, we look at the we look at risk weighting, we look at all these different things. And we make it a very sound decision. It could take a couple of weeks. And if the if the if the investment isn't there in a couple of weeks, and it wasn't the right investment. So if I was talking to my old self, I'd say take a deep breath, JB Wait 24 hours and ask yourself, is the person presenting this to wise counsel?

Andrew Stotz 27:54
Right, great point. We've talked about some different resources from Ray Dalio to Benjamin Graham's Intelligent Investor, to Robert Kiyosaki. I always say that the book Rich Dad, Poor Dad, unfortunately, is one of the worst books that's been published. And people can't believe this. Because what I mean by this is that the rich dad is a business man. The poor dad is a salary man. Yes, my dad was a salary man. And you know, he managed to become somewhat rich. But the problem is, only a fraction of 1% of people in this world, are suitable to be entrepreneurs. And so that book is basically saying to everybody that's reading it, be a rich dad, be an entrepreneur, which is very bad advice. For the 99.5% of people who get in before that point, 5% is going to really work out. But for the other ones, it's going to be hard. Now, I have to admit, there's a lot of great lessons in there. And he's also followed up with some great books like Cashflow Quadrant and all that. But I just want people when I thought about that more deeply, I really realized that we have to help people to get rich through their salary. Also,

Coach JV 29:19
I love that, you know, I've never heard that perspective. And I've never heard that. I appreciate that. Because I have to back you on that. So we're so when I went to go start my businesses, you know, I'm leaving a quarter of a million dollar job safety net, to go start businesses. And I remember, you know, I talked to somebody close to me, and the first thing they said was, do you know that 85% of small businesses fail? Well, my mindset is flip flopped. I said, Well, 15% succeed, and 1% became seven figure ecosystems. And they're like, Oh, well, we'll see what happens. Well, I failed for a couple of years. And now we have three seven figure ecosystems, but you're right, like only I think it's 1% become over small, small businesses become million dollar ecosystems, right. And so what I got I love what you just said, because we've been experiencing that we've had 1000 People go through our academy, and people try to do what we're doing. And so what we tell people is like, don't try to do what we do learn what works for you. Right? So like you said, Well, if you're in a job, the first thing you can do is the way you can create money immediately is look at your budget. Look at your budget. So that

Andrew Stotz 30:19
wealth engine cranking, yes, dude. ATM machine.

Coach JV 30:26
Yeah, so I'm like, Hey, decrease expenses right there. There you go. You get a pay raise. Number two is go to your boss and ask for a raise the two ways, there's two ways right there and then all of a sudden, but now when you get that money, we don't buy a nicer car, we don't get a bigger house, we take that money and put it to work, which can get you on the right side of the Cashflow Quadrant where money is making money for you. And that's a lot of though Warren Buffett is my favorite. Yeah, he's my favorite. Like he's, yeah, he's when he says you know, you'll never be wealthy till you make money while you sleep. And that feeling it that's what the place I want to get to people. Because when I started to make money while I slept, whether it's you entrepreneurship investments, it gives you peace of mind, when you wake up in the morning and you you've made more money than you made in a month prior and your job, but people can do that. I love what you're teaching, because I have to take take a little bit back on that and take some wise counsel from that. Because, you know, I'm the flywheels moving for me. You know, I made all my losses, I lost my money twice through the process. But now the flywheel is going so I have to step back for a moment say to myself, like you're in the flywheel because you spent seven years, you know, hundreds of 1000s of posts and all this stuff and all my 401k to build this and stuff. And I thank you for that. Because I'm taking that lesson because often on social media, specifically everybody's preaching this laptop lifestyle, passive income, all this, it's like, it's all active man. It's all active. You know, the

Andrew Stotz 31:46
other. The other thing that most people don't realize, if they look at the hockey stick chart of compound interests are compounding what they don't realize, and so when they talk about people say I want passive income, what does that mean? Well, to the average person, it means that I sit back and collect cash flow from my investments. Now, in theory, that's where we all want to be. However, you have to remember that that hockey stick is an exponential rise in our wealth in later years. And that hockey still only comes from interest. Yes, which basically means you can never take anything out of your investments. Yes,

Coach JV 32:30
I love that. That's one of my strategies. Yes. So like, that's why I use insurance for me. So you know, we use Indexed Universal Life, we have a licensed insurance agents, we, I use cash value insurance plans, and it's like a hug, it's not sexy in the beginning, if you touch it in the beginning, it's not going to work. It's after seven years, it starts calling, you know, what is it the eighth wonder of the world is compound interest. And it's like if you watch that, and that's why I'm also trying to help people to like, you know, you go to school, get a job, you go on the 401k, to me, it's an opposite of a hockey stick, right you're earning is in the beginning, and then all of a sudden, you get taxed on the back end, it starts to fall off when you're supposed to retire. And so I think it's important what you're teaching to is like to take a little bit of sovereignty over wealth, you know, not just, you know, I don't know how you feel about walking into an HR director and be like, hey, yeah, put some of this money in my for in the 401k. I mean, the creator of the 401k is quoted saying, I made a product that made Wall Street wealthier, you know, it's like, yeah, I think it's important for people to take sovereignty of their wealth, or at least understand your where your hard earned money is going.

Andrew Stotz 33:28
Yeah, I think you gotta be careful of anything that governments send selling you and ultimately 401 k, here, we just had a big what I call it an ESG fund scam, because the government pushed all the asset management companies to go out and push an ESG fund. And, you know, get a lot of people into it. And of course, anybody that knows anything about finance knows that an ESG fund is going to underperform. A similar fund, similar type, whether it's passive or active over the long term, for a couple of reasons. The first reason is that you're reducing the universe that you're selecting from, because you're giving ESG scores to 500 companies and you're saying morning, we're not going to invest in 50 of those are 100 of those. Anytime you remove any stocks from your universe, you're reducing your opportunities for gain. And then there's other reasons we know that anything that's ESG is going to be more expensive to do within the company, or else the company would already be doing it. And so it's naturally going to drive down returns. And so what happened was that fund managers pushed the government's propaganda on ESG. And I told my fund manager friends, be very careful because you could be caught out for misrepresenting the returns of this product. And it doesn't don't bring any comfort to yourself that the government was supporting it because when it comes down, and they have your records of your emails and your calls, and the government's changed and they're on to something else, they ain't gonna come back. Xavier so be careful about that's something you know specifically about Thailand. So let me ask you one last question, what is your number one goal for the next 12 months?

Coach JV 35:10
Oh, great quote number one goal is to, to stay non emotional about what's happening in America, America is going through a really really rough time right now. To stay non emotional, it's to say focus on my fundamentals, to be as keen as possible on not getting caught. I call it the greed gene. We know cryptocurrency is about to go through the Bitcoin halving and then interest rates are going to drop in America, which I believe is going to cause hyperinflation or assets. And my main goal is to not make the same mistake I made in 2021 to 2022, we're set up you know, we've been accumulating since you know, the it's been very low, we've been accumulating, accumulating this potentially could be life changing for us in our warriors. So the main goal is to stay unemotional about everything that's happening to stay focused on for me, God, following the life of Jesus, staying focused on foundations, family, staying non emotional, and understanding that this is a greatest opportunity in human history. I really believe that in these volatile times like this, it's one of the greatest times for people to build wealth. It just is part of the cycle. And so for me, stay non emotional, stay focused on my foundation of God and family. And, and have fun to enjoy myself. You know, it's like the stuff that's happening within America. It's happening all around me, but I can focus on my own actions, my own behaviors, my own foundation. And so yeah, so for me, it's staying on emotional, I always say keep the greed gene out of it, because crypto is gonna go parabolic straight up. And we learned our lesson last time, we want to make our worst investment, our best investment ever. Well,

Andrew Stotz 36:38
in my last strategy report that I wrote, for my clients, my prediction was either end of this year last year, or by the end of first quarter US interest rates at zero.

Coach JV 36:50
Really, at the end of this quarter, you said yeah. Now we might

Andrew Stotz 36:54
my argument is simple that, you know, they propped up the economy through the spending, that's been done by borrowing. We've had an inverted yield curve. Now for more than a year. Employment is at its peak, which tends to be a signal that it's about to that we're hitting a peak for the economy and for the market. And the Fed has only one tool, and they've shown over the years that they're just perfectly happy to reduce interest rates to zero. And it's an election year. And you as one, there's one man that could potentially win this election, but I suspect it's just too painful to allow him to win. And so all, you know, if, as we saw before the midterm elections, the release of the Strategic Petroleum Reserve, managed to really push down oil prices, and therefore, prices at the pump and prices in general. And I think that that really tipped the scales for the election, that was potentially going another way for the Biden administration. And I'm just watching for what's going to come. But I think bringing interest rates back down to zero is something that I think is quite possible. And if that happens, then the equity markets flying. So I still, I think you've got to be careful not to, you know, when you look at the stock market, in America, it's very expensive, I got to be careful not to move too much money out of that and keep exposure, I'm not overly exposed, I'm exposed to some other asset classes, but generally, that's my, my, my, my prediction. And the last thing about the US, you know, it's, it's really, I'm really sad to see it go. It was a great experiment, I put up a post on my LinkedIn about a year ago, and I asked people, how many years will it be before the First Amendment is changed in the US, is amended. And, you know, there was a good number that said, Never. But there was also a good number said five years. And I think the idea of when I, you know, if I was in America, and I put up a billboard, it would be hate is legal. We need to understand that if somebody hates another person, as long as they don't do violence, or as long as they don't do a physical attack, somebody can sit in their home or live their life hating other people. That is legal. Only in America, not in Europe, not in other countries. But the benefit of this is that it helps us understand that we stop trying to control people's speech and people's thought, but unfortunately, America wants to make, you know, they want to make a lot of different speech illegal and I would say probably five years to 10 years from now. We're gonna see, you know, some pretty pretty scary things and for the rest of the world out there. It's, it's losing, you know, that that loses hope for the rest of the world because there's no country in the world that is going to be able to provide as much rights for individuals as the US so When the US goes down, then there's no home for that. So I've

Coach JV 40:04
been I've been talking about that since 2020 on my channel, and I agree with you with interest rates. And did you see the Jerome Powell interview that he just did on 60 minutes, it's pretty bone chilling at the at the back end of it, I encourage all Americans to watch it. Jerome Powell literally caught the ball. And he's like He and you can almost see his soul. He like his soul is breaking. He's like, he says, At the end of the interview, I'll just leave it at this. He says, America is on an unsustainable path. And I've been telling people guys, when they the only option they have is to lower interest rates, that's it, that's going to cause hyperinflation, or reset the system there's, there's no there's no other way out of this. They there's so much debt and it's all debt, there's that all they have to do is they just have to monetize that and move it around the system. The stock market's overvalued, everything is just I call it food Ghazi everything is just fake money. It's all this fake money and, and what what I felt him say and he said this couple times throughout the last couple of years, he said I'm worried about the middle class getting wiped out leverage towards technology. What he was trying to say to the middle class is get your shit together. Like you need to start creating a budget, you need to start getting your family in line, you need to start reducing your expenses because America is about to go through one of the hardest times economically that we've ever been through. We're so over leveraged all the people and the country. And yeah, it's gonna be really bumpy ride, but also to again, I tell people, it's the greatest opportunity to build wealth,

Andrew Stotz 41:24
protect yourself. That's a great, great lesson, you know. And I also warn people that AI is going to make what outsourcing to China did to the working class seemed like nothing. When AI truly hits the middle class. It is going to move a lot of people from middle class to lower class in America, and it will happen very fast. Well, listeners, there you have it another story of loss to keep you winning. Remember, I'm on a mission to help 1 million people reduce risk in their lives. As we conclude coach JV. I want to thank you again for joining our mission and on behalf of a Stotz Academy, I hereby award you alumni status for turning your worst investment ever into your best teaching moment. Dawn all at two 3am in the morning. Do you have a parting words? Any parting words for our audience?

Coach JV 42:19
Absolutely. Remember what you believe in your heart. You think in your mind will eventually become your words have become your reality. If you can see it in your mind events, you can hold it right here in your hands. What you repeatedly do gets ingrained in your subconscious mind. What gets ingrained in your subconscious mind becomes your unconscious activities.

Andrew Stotz 42:38
Amen. And that's a wrap on another great story to help us create, grow and protect our well fellow risk takers. Let's celebrate that today. We added one more person to our mission to help 1 million people reduce risk in their lives. This is your worst podcast hose Andrew Stotz saying. I'll see you on the upside.


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About the show & host, Andrew Stotz

Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.

Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.

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