Q&A: Can You Really Beat the Market by Copying Members of Congress?

28 snips

Nov 4, 2025

Exploring the intrigue of ETFs that track U.S. politicians, the discussion reveals their speculative nature and high costs—more for playful bets than serious investing. Home maintenance tips come next, with strategies for budgeting and selecting trustworthy contractors. The conversation ends on starting businesses solely for tax benefits, cautioning against this approach as energy-draining. Instead, they advocate for pursuing passion-driven projects, with a clear distinction between fun money and wealth-building strategies.

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INSIGHT

Congressional-Trade ETFs Are Speculative

ETFs that copy congressional trades are speculative and hampered by reporting lags and insider biases.
Paula and Joe recommend these only as tiny "fun money" positions, not core holdings.

ADVICE

Keep Speculation Small And Separate

Limit speculative funds like NANC or GOP to under 5–10% of your portfolio and treat them as entertainment.
Keep speculative holdings in a separate brokerage account to protect core investments.

ADVICE

Use Investor Networks To Find Contractors

Find investor-friendly contractors via local investor meetups, property managers, and word of mouth.
Use pre-screened vendors and repeat business to get fair pricing and reliable work.

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#657: This week, Paula and Joe dig into a listener’s question about ETFs that track the stock trades of U.S. politicians — including the Democratic “NANC” fund and its Republican counterpart “KRUZ.” They explore whether this strategy is smart investing or just expensive entertainment.

Then, they shift gears to home ownership headaches. Another listener asks how to control ballooning maintenance costs, and Paula shares her best advice for finding trustworthy contractors, budgeting for repairs, and knowing when DIY doesn’t actually save money.

Finally, an anonymous caller wonders if starting a small business just for tax breaks makes sense. Paula and Joe explain the IRS rules — and why energy and purpose matter more than deductions.

From “fun money” investing to financial planning that actually works, this episode is all about balancing curiosity, caution, and common sense.

Key Takeaways

Congressional-trade ETFs aren’t a shortcut to wealth. They’re speculative, lag behind real trades, and carry high costs
Home maintenance is predictable — plan for it. Create a repair timeline and build relationships with investor-friendly contractors
DIY isn’t always cheaper. Factor in time, tools, and opportunity cost
Never open a business just for taxes. If it doesn’t make a profit or bring joy, it’s an energy drain, not a strategy
Separate fun money from freedom money. Keep speculation playful, and build wealth with focus and purpose

Chapters

Note: Timestamps will vary on individual listening devices based on dynamic advertising segments. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

(00:00) Should You Follow Congress’s Trades?

(06:00) The Lag Problem and Investor Bias

(10:30) The “Fun Money” Rule

(11:20) The Hidden Cost of Home Repairs

(15:00) Finding Investor-Friendly Contractors

(18:00) Planning Ahead for Repairs

(22:00) DIY vs. Opportunity Cost

(26:00) Starting a Small Business for Tax Breaks

(29:00) The IRS “3-of-5 Rule”

(32:00) Purpose Over Deductions

(34:00) Final Thoughts

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