Wealth Formula by Buck Joffrey

Zulfe Ali is a broker dealer and investment advisor—but not your run-of-the-mill type in this field. He’s been in the middle of the action on Wall Street as a mergers and acquisitions guy for JP Morgan and Bank of America in the 90s and ran a multibillion-dollar sovereign wealth fund for over a decade. I’ve seen photos of him with world leaders like former UK Prime Minister Tony Blair and others as part of his former position. To say the least, he’s not one of those 6 week course advisors out there. While he has now opened his door to individual investors like us, he is using institutional principals to help clients grow their money. As you can imagine, those principals are quite different from your typical advisor and I am happy to endorse him to anyone looking for a third-party financial advisor. Many people have asked me for a recommendation throughout the years and I have not been able to give one until now. In this episode of Wealth Formula Podcast, I speak to Zulfe about his perspective on asset allocation and the current economy. Make sure to tune in to see what a guy at his level is thinking. And later on this week, tune in for my “Back to School” episode where I give you insight into how I design my own investment portfolio. Listen NOW! Zulfe is focused on bringing his experience and skills to help individuals, family offices and businesses to invest wisely, implement sound financial strategies, and protect their assets. Zulfe has always immersed himself into the global financial markets. He began his career in the early 1990s, just prior to the “dot-com” boom at a boutique investment bank in San Francisco called Montgomery Securities. That firm was eventually acquired by Bank of America where Zulfe continued to work with investors in growth equities. He then joined JPMorgan’s acquisition finance team working both in New York and London to support private equity and corporate clients. After that, he went on an adventure to the Middle East and worked at a sovereign wealth fund as Chief Investment Officer with a mandate to diversify the existing investment portfolio through a global asset allocation strategy. Following that role, Zulfe joined a London based venture capital firm and helped to expand its presence in the US and launched its first US based fund out of Washington, DC. Zulfe has an BA in Mathematics from Carleton College and an MBA from Cornell University. Shownotes: Discussion on Retail vs Institutional Investing Importance of Diligence in Investing Examples of Investment Disasters Role of a Broker Dealer Introduction to Velerity Group Wealth Applying Institutional Investing Experience to Retail Investing Role of an Advisor Portfolio Diversification Current Economic Situation Effect of Interest Rates Investment Strategies

Return to Personal Finance: Estate Planning Do You Need a Will? Is the Estate Tax Stupid? Avoiding the Estate Tax

Those of you who have been listening to me for a while know that I am not really a precious metals guy. I know the arguments and I respect them. Gold has held its price over an unprecedented amount of time. An ounce of gold got a guy a nice toga and sandals in Roman times and today it will get you a nice suit and a pair of shoes. In that regard, gold has been the ultimate hedge if you are looking for wealth preservation over a thousand years. And that’s what people selling you gold will tell you. They aren’t lying but there is often an element of fearmongering involved in that world that I find distasteful. The thing that I don’t really like about gold is that it is an asset that doesn’t throw off any money. And if you are storing it somewhere it’s going to cost you money to do so—kind of like real estate that has negative cash flow. With negative cash flow, leverage doesn’t make sense either—not like it’s available on gold anyway. So I guess my perspective is if you want a real asset that is hedged against the dollar and keeps up with inflation, why not buy real estate? In fact, if you don’t put any leverage on the real estate it’s pretty much behaving like gold but giving you an income as well. I remember Dante Andrade and I looking for properties for Touro and seeing Chinese buying $30-40 million dollar assets for cash. They were essentially buying a storage of value outside of China. Kind of sounds like gold, right? Except the real estate cashflowed of course. Anyway, today I’m not anti-gold by any means. I’m just not a gold bug. As for other precious metals, they often have more utility than gold so that certainly is an appealing quality. Silver, for example, is used in several industrial applications. In that sense, there may be some additional value there that could lead to price increases in the future. I’m certainly not an expert in this area though. That being said, personal finance is personal and you should hear the argument for all types of assets and make your own decision. My guest this week is an expert on silver and makes a pretty interesting case for why you might want to add some to your portfolio. Make sure to tune in! P.S. Later this week, look for another podcast as part of our “back to school series”! Michael DiRienzo is the Executive Director at The Silver Institute.

I live in Montecito, CA. It’s a small beach town of about 5 thousand people at the southernmost part of Santa Barbara. I moved here from Chicago in 2017 and started living here as a renter. One thing I learned over the years is that whenever I move to a new area, I always end up finding a part of town I like better so it’s best not to buy right away. There was also quite a bit of sticker shock when I moved here. In the northern suburbs of Chicago where we moved from, I paid $2 million for a 7000 square foot home on 2.5 acres and an indoor pool. $2 million didn’t get you much of anything in Montecito so I needed some time to digest this new reality for a bit as well. In hindsight, that wasn’t such a good move. Since 2017, Montecito homes saw an average sale price increase of over 60 percent—the steepest rise in prices in California during this time. And to be frank, that number sounds a bit low to me. Covid didn’t help. Rich people from LA, San Francisco and New York realized that if they had to work from Zoom anyway, they might as well do it from paradise where they could also hike the mountains and go to the beach on the same day. You know what else didn’t help?… Low interest rates. However, I will say that the number of cash buyers of multimillion-dollar homes in my area is unreal. As for the rest of the country, the suburbs pretty much everywhere took off. Near zero interest rates and nowhere to go made people buy homes so they had a nice place to be all day long while quarantined. Now that quarantines are over and interest rates are high, you might think home prices would have fallen off the cliff. Nope. Remember it’s all about supply and demand. Right now, supply is low. Why? Well, if you bought an expensive house at a fixed rate in the last few years would you be selling anytime soon? Mortgage rates have more than doubled. In other words, many people today could not afford the house they bought a few years ago. That’s a problem across the country. As a result, supply is so low that even minimal demand is keeping housing prices high. All I can say is thank God I ended up buying a house before it got too crazy. The issues around real estate prices right now are complex but worth understanding. My guest on this week’s Wealth Formula Podcast is an economist who specializes in these specific issues. Make sure to tune in and see what she has to say about this very unique time in real estate history. Selma Hepp is the Chief Economist for CoreLogic, America’s largest provider of advanced property and ownership information, analytics and data-enabled services. Selma leads the economics team, which is responsible for analyzing, interpreting and forecasting housing and economic trends in real estate, mortgage and insurance. Prior to joining CoreLogic in 2020, Selma was Chief Economist and Vice President of Business Intelligence for Pacific Union International, later acquired by Compass, where she oversaw the vital economic and technology intelligence to drive the expanding brokerage’s success. Selma also held the role of Chief Economist for Trulia; Senior Economist for the California Association of Realtors; and Economist and Manager for Public Policy and Homeownership research for the National Association of Realtors, as well as a special research assistant at the U.S. Department of Housing and Urban Development. Selma frequently appears on local and national radio and television programs and has been widely quoted in The Wall Street Journal, The New York Times and many industry trade publications such as National Mortgage News and HousingWire. Selma received the HousingWire Women of Influence Award in 2022. She has served as president of the Los Angeles chapter of the National Association for Business Economics (NABE), NABE Real Estate Roundtable co-chair, Board member of the International Student Exchange Program, Advisory Board member of the REALTOR® University Research Center Editorial Review and a Member of the Housing Policy Debate Editorial Advisory Board. Selma held a Real Estate Associate professional license in Florida and Virginia. Selma graduated from the State University of New York, Buffalo with an M.A. in Economics and holds a Ph.D. from the University of Maryland.

I don’t know about you but my kids are about to head back to school. In this spirit of that, I thought it might be nice for us to get back to basics as well. For the next few weeks, I will be releasing at least one podcast that involves the basics of personal finance in addition to whatever else may be on the docket. This week’s back-to-school episode is about asset protection and my guest is Doug Lodmell. Make sure to tune in and let me know if these shows are helpful! Born in Geneva, Switzerland, attorney Douglass S. Lodmell has excellent knowledge and the highest level of experience in estate planning, taxation and strategic asset protection for domestic and international clients. In addition to a Juris Doctorate from Cardozo School of Law, Douglass has a Bachelor of Science degree in finance as well as an advance law degree (LL.M.) in taxation from NYU School of Law. He has authored numerous articles for professional journals as well as a popular book about the explosion of lawsuits in America called The Lawsuit Lottery: The Hijacking of Justice in America. Doug’s extensive experience in asset protection make him a frequent guest speaker at medical, and professional conferences and seminars throughout the country, as well as teaching concepts of asset protection to other attorneys at continuing legal education seminars throughout the country. For information on inviting Doug to speak at your group, meeting or convention contact Coletta Anderson at Coletta@www.lodmell.com.

I have a medical degree and am a former board-certified surgeon. Yet that is not my identity. My identity is that of an entrepreneur and investor. This is an identify for which I did not go to school. Without trying to sound dramatic, I was born this way. I think it’s a genetic thing. You see my dad came to this country in the late 1960s and trained as an engineer. He eventually got caught doing real estate on the job and got fired shortly after I was born. That’s sort of my story too—I was working at a cosmetic surgery company while planning to start my own company. When they found out, they perceived me as a competitor so they fired me. The apple does not fall far from the tree I guess. He went on to a career as a real estate entrepreneur and continues in that endeavor even today into his 80s. Despite my detour into the surgical world, I too have spent the majority of my life as an entrepreneur. It wasn’t a choice. It was in my nature. I am unemployable. I hate having to answer to others and I despise hierarchy—unless I’m at the top. That’s why I am a business owner and not an employee. Again, to be clear, I don’t think there is anything wrong with being an employee. I just am not built that way. Now, in my case, I had the daredevil instinct to start businesses from scratch. Some of my business ideas failed and some were wins. The good news about being an entrepreneur is that you just need a few big wins. Now if I did not have daredevil entrepreneurial instincts would I have been able to be a successful business person? Yes, but I don’t think I could have started businesses from scratch. But that does not mean that you have to have to be born an entrepreneur like I was. It just means that you might want to find a more structured way to get into the arena. Buying a business is certainly an option. I will say that when you start a small business you get suspicious of buyng other small businesses because you know that somewhere in your own business there is a closet full of skeletons. When you buy a business, you don’t know where that closet is. That closet often has all kinds of secrets. For example, it may tell you who the key people are that make or break that business. What if those people leave when you buy the business? The only way to avoid buying a business with such an Achilles heel is to buy one of sufficient size that can’t rest on just a few shoulders. But not all of us can afford a $50 million business with an executive team in place. That’s where franchising might make sense. The value proposition of a franchise involves having the playbook on how to successfully run a business with the backing of a larger entity behind you. In theory, this should provide you with play-by-play directions on how to start and run a successful business. In addition to guiding the less business inclined into ownership, franchises may also provide some level of risk mitigation to people looking for business opportunities but reluctant to deal with the unknown variables of business ownership. That said, it is not without a price. Franchise fees are real and must be weighed into the entire equation. My guest on this week’s Wealth Formula Podcast helps people navigate the world of franchise opportunities and is a great resource for those interested. I should point out that I have no financial relationship with Kim nor have I found franchising suitable for myself at this time. But it might be for you and you should certainly know a little bit about this option. So tune in! For the past 20 years Kim Daly has been helping entrepreneurs, investors, and stuck 9-5 professionals take control of their lives and step out of the corporate cycle by investing intelligently in the franchise businesses and become “franchisepreneurs.” She is an international best-selling co-author of Franchising Freedom and the founder and host of the Kim Daly TV YouTube channel. Before becoming a franchise consultant Kim was an entrepreneur and highly sought after consultant in the health and fitness industry working with brands such as Denise Austin, Dr.Denis Waitley, Gold’s Gym and eDiets.com. She is the creator of “The Daly Plan” – a millionaire mindset coaching program that enabled her to build the largest franchise consulting business in the history of franchise consulting in 2012. She aspires to be the most influential and motivational voice in the franchise industry. Kim is a mom of two teenage boys. She is passionate about fitness and nutrition. She lives on the beach in Southern New Hampshire where she loves to ski in the winter and workout year-round.

It turns out that the conversation about getting out of fossil fuels and into green energy is a lot more complicated than just energy. Of course “black gold” has literally fueled our society into its wealthiest state since the beginning of man. No one argues that. But there is a clear movement globally to try and move to clean energy for the sake of the environment. Beyond energy, however, oil plays a pivotal role in the manufacture of several products that we rely on in our daily lives. For example, the petrochemical industry heavily depends on oil as a raw material. Petrochemicals derived from oil and natural gas are the building blocks for a wide range of goods from plastics to resins, synthetic fibers to rubbers, detergents to adhesives, and even solvents. Without these materials, you wouldn’t even have the materials to make the computer or smartphone you’re using to read this email.   Right now, we literally need oil to live. Many pharmaceuticals such as aspirin and the coatings on time-release pill are made from oil derivatives as are artificial heart valves, artificial limbs and even contact lenses. I could give you a myriad of other products that rely on oil but suffice it to say that life without these products would not be the same. Does that mean that we should give up on alternative energy? No. We should always be looking for cheaper and cleaner alternatives. The point is that to truly get off fossil fuels we also need to start thinking about alternatives for all of the products that rely on oil as well. It’s an underappreciated problem that my guest on this week’s Wealth Formula Podcast addresses and it’s worth your time to understand the full scope of the issue. Listen Now! Ronald (Ron) Stein (born April 29, 1941) is an author, columnist, Engineer and energy policy advisor for Heartland Institute. He is co-author of Energy Made Easy – Helping Citizens become Energy Literate (2019), Just GREEN Electricity – Helping Citizens Understand a World without Fossil Fuels (2020), and the 2021 Pulitzer Prize nominated book Clean Energy Exploitations – Helping citizens understand the environmental and humanity abuses that support “clean” energy. Ronald advocates that energy literacy starts with conversations and the knowledge that renewable energy is only intermittent electricity generated from unreliable breezes and sunshine. Wind turbines and solar panels cannot manufacture anything for humanity, while fossil fuels manufacture everything for the 8 billion on this planet.[citation needed] He is the founder of Principal Technical Services (PTS).

Investing during tough times can be challenging, but it's important to activate your instincts as a predator. The podcast explores applying fighter pilot decision-making to everyday life, emphasizing the value of clear thinking and preparation. Planning for uncertainty and understanding power laws are also discussed. The podcast delves into overcoming fear and building mental resilience, and highlights the importance of parallel thinking and rational investing.

I was in high school when the Berlin Wall came down. The ensuing decade was really like no other I have experienced in my life. It was the 1990s. There was no more cold war. Decades of fear of nuclear annihilation vanished into thin air. And 9/11 had not yet happened so we did not yet know the new world of terrorism. It could be that I was young and stupid but life seemed good. The news of the day was about Monica Lewinsky’s stained dress and political conflict seemed ludicrous but benign. Back then, I used to think that the world just got better with time. But in the last 20-30 years I have realized that it’s actually more of a pendulum. There is no doubt that we now live in turbulent times. The country is horribly divided to the point where rational individuals have brought up the idea of a national divorce. Ronald Reagan is rolling in his grave. Nevertheless, as crazy as these times may seem, we should keep in perspective that we have seen worse before. In 1861 we actually did have a civil war. As for cultural wars. Well, all you have to do is go back to  1968 to see that what’s going on now is actually pretty tame. Of course, I don’t need to tell you that the United States has had numerous economic booms and busts throughout our history. Bottom line is that history does not repeat itself but it certainly does rhyme. My guest on today’s episode of Wealth Formula Podcast is an esteemed historian that has recognized specific historical patterns and suggests that they are highly predictable. So what’s next for the United States and its economy? He thinks we are in the final stage of an 80-year cycle. Find out what that means for you on this week’s Wealth Formula Podcast. Neil Howe is a historian, economist, and demographer who writes and speaks frequently on generational change in American history and on long-term fiscal policy. He is cofounder of LifeCourse Associates, a marketing, HR, and strategic planning consultancy serving corporate, government, and nonprofit clients. He has coauthored six books with William Strauss, including Generations (1991), 13th Gen (1993), The Fourth Turning (1997), and Millennials Rising (2000). His other coauthored books include On Borrowed Time (1988). And more recently Millennials Go to College (2007), and Millennials in the Workplace (2010). He is also a senior associate at the Center for Strategic and International Studies, where he helps lead the CSIS “Global Aging Initiative,” and a senior advisor to the Concord Coalition. He holds graduate degrees in history and economics from Yale University. He lives in Great Falls, Virginia.