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LIVE Q&A + Big News at Dentist Advisors – Episode #342


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On this Dentist Money™ Show, which was recorded live, Ryan, Matt, and Rabih answer questions about what’s happening in today’s financial world. Inflation, stagflation, real estate trends, and what historically happens to stock prices during a recession are all discussed. Plus, learn about the new Dentist Money Membership—an announcement you don’t want to miss.

 


 

Podcast Transcript

Ryan Isaac:
Hello, everybody. And welcome back to another episode of the Dentist Money Show sponsored by Dentist Advisors, a no commission, fiduciary comprehensive financial advisor just for dentist all over the country. Today’s episode was actually recorded last week live in studio. We had listeners and fans of the show tuning in with us live and submitting questions. Matt and I are joined in studio by a fan favorite, a highly requested member of the Dentist Money Show now, which is Rabih Dimachki. Rabih is talking about interest rates, inflation, recession, and taking some questions about the economy and the stock market from listeners that tuned in. We talked so much that day that I still have not recouped my voice.

Ryan Isaac:
And we also, the second half of the show, have a very exciting announcement. Something we at Dentist advisors have worked on as a team for a very long time that we are so excited to bring to all of you, and we’re excited to bring to the dental community as a whole. So thanks for tuning in, and if you have any questions for us, you can go to dentistadvisors.com, schedule a free consultation and chat with us anytime. This was an exciting episode. We were happy to do it. We look forward to doing it again in the future. Thanks for tuning in. Enjoy the show, everybody.

Announcer:
Consult an advisor or conduct your own due diligence when making financial decisions. General principles discussed during this program do not constitute personal advice. This program is furnished by Dentist Advisors, a Registered Investment Advisor. This is Dentist Money. Now, here’s your host, Ryan Isaac.

Ryan Isaac:
This is our first Dentist Money show live production. And we are here in our studio, which is also rare. I wish we could just flip this camera around because we have the behind-the-scenes people that are cooler and more important than…

Matt Mulcock:
The true talent.

Ryan Isaac:
Can you do that, Jess?

Jess Reynolds:
No.

Ryan Isaac:
She’s just gonna selfie this. Who you can’t see here, the smart guy in the middle who everyone begs to have us back constantly, Rabih. What’s up, Rabih? You good?

Rabih Dimachki:
How’s it going? Happy to be here.

Ryan Isaac:
Yeah, there he is. I’m Ryan and will be your host/moderator today. And of course, as always, we’ve got Mattie, the Hollywood mountain, Mattie Mulcock.

Matt Mulcock:
Hello. Hello. Good to be here.

Ryan Isaac:
It’s good to be with all you folks. This is the live Dentist Money Show and just like every other Dentist Money show, except for not live, we are here to help dentists make smart financial decisions. And we’re really stoked to do this with a live audience. Okay. So here’s the outline. Here’s what we’re gonna do today. We have an exciting announcement. Do people know what the announcement is? We’ve teased the announcement tease, but the actual announcement?

Matt Mulcock:
We’ve teased the announcement. Yeah.

Ryan Isaac:
I’m also noticing, just FYI, that there are two bald men here with hats on, and this is officially, this is called being hat fished.

Matt Mulcock:
Yeah. [chuckle] I’ve never heard that.

Ryan Isaac:
I learned this term that when there’s a bald guy on a dating app and all of his pictures only has hats on, then that’s called being hat fished because then they take the hat off and you’re like, Oh…

Matt Mulcock:
Okay. So this is like a thing?

Rabih Dimachki:
Yeah. True story.

Matt Mulcock:
Okay.

Ryan Isaac:
Oh, you have a story?

Rabih Dimachki:
One picture without a hat and my likes just went up.

Ryan Isaac:
Oh, good.

Matt Mulcock:
Oh.

Rabih Dimachki:
So right.

Ryan Isaac:
The real Rabih.

Rabih Dimachki:
The real Rabih.

Matt Mulcock:
So you gotta be more… The lesson there is be authentic.

Ryan Isaac:
Yeah. Be yourself, everybody. Okay. So here’s what we’re gonna do. We have kind of like three things here going on in today’s live Dentist Money Show podcast. Number one, if you’re here with us live, then please put some questions in the chat box. We will be… Jess will be reading them live on air, word for word as they come in. No filter. So you can type anything insane.

Matt Mulcock:
Oh my gosh.

Ryan Isaac:
And she’ll have to read it out loud on a microphone.

Jess Reynolds:
Yeah.

Matt Mulcock:
She has to, it’s required by law.

Jess Reynolds:
I actually just learned how to read for this episode. [laughter] So we’re excited.

Ryan Isaac:
Okay.

Matt Mulcock:
Wait, are you gonna do the welcome, like your intro or no?

Ryan Isaac:
We kind of did, but we can. We’ll do it.

Matt Mulcock:
I love, that’s my favorite part.

Ryan Isaac:
Welcome to the Dentist Money Show where we help dentists make smart financial decisions. I’m your host and moderator today, Ryan Isaac. And I’m here with the Hollywood mountain, Matt Mulcock. And there he is. And we are joined today, of course, by the illustrious brain of Rabih Dimachki. Rabih, what’s up? Thank you for being here. There you go.

Rabih Dimachki:
Thank you.

Matt Mulcock:
I feel like I put you on the spot, but I had to, I love it. I don’t feel normal on these until I get that.

Ryan Isaac:
You’re like, go.

Matt Mulcock:
That’s my cue.

Ryan Isaac:
Okay. So live questions. If you’re here joining us, type some questions in, we will take them as often as we can and jump in with that. That’d be really cool. We are gonna have a chat today with Rabih. We always like to putting Rabih on and talk the economy. If you’re listening to this later down the road, maybe in the year 2047 or 2052, for example, when you’re listening to this later, you might be wondering what’s going on in the economy in June of 2022. We’ve got some things going on in the economy and people have questions and they wanna know what’s going on. That’s why we bring Rabih here to tell us the truth and the real answers of everything.

Matt Mulcock:
How many dentists are we gonna be working with in 2047? Do you think? [chuckle] Just guess.

Ryan Isaac:
Zero. [laughter]

Matt Mulcock:
We will be retired.

Ryan Isaac:
2047, that’s a ways off, probably stil be working. I moved to California. I have to be working in 2047. Okay. Ask questions in the chat box. We are gonna have a conversation with Rabih about kind of some things that are going in the economy. We have a lot of great questions that have come in about investing. Is now a good time? Do you invest when the markets are down? Do you wait till they go back up? Those kind of questions come in all the time. And then at the end we’re going to have a surprise, right?

Matt Mulcock:
Yeah.

Ryan Isaac:
We’ve teased it.

Matt Mulcock:
It’s a big surprise.

Ryan Isaac:
Have we officially announced? I don’t think we’ve said that.

Matt Mulcock:
We have not officially announced.

Ryan Isaac:
It’s not officially.

Matt Mulcock:
This is it. This is gonna be it.

Ryan Isaac:
So tonight we have an official announcement, something we’ve actually been working on as a company for, in theory, years. I mean, this project’s been over the last 12 months or so. Some of you have worked really hard on this. But it’s solving kind of an issue, tackling an issue that has been years in the making. We’re really excited to talk about that today. So before we kick this off, Jess, are there any questions that we want to intro with or like kick off the show, especially if it might have to do with some of the things Rabih wants to talk about?

Jess Reynolds:
Yeah. So I think one of the best questions that we’ve received so far is, I get inflation, but what is stagflation?

Ryan Isaac:
Oh. I understand inflation, but what is stagflation?

Rabih Dimachki:
Oh kind of like…

[overlapping conversation]

Ryan Isaac:
Fired up. Rabih, what’s stagflation?

Rabih Dimachki:
All right. So…

Ryan Isaac:
Well, hold on. What’s inflation? Because they’re saying I understand it, but let’s explain it any way. What’s inflation and then what’s stagflation?

Rabih Dimachki:
All right. So inflation in the rule of thumb world is when prices increase from one year to another. Inflation affects economies by depreciating their currency. And it’s a big loss of purchasing power for people. And we usually see it like what we’re experiencing nowadays. Everything is expensive, flights, gas, and it’s not good for anyone. It’s definitely more harmful on the long run than a short spike inflation. And if it becomes chronic, it actually threats the whole infrastructure. So this is what…

Ryan Isaac:
Sorry, chronic meaning prices just surge and they never stop surging.

Rabih Dimachki:
That’s right.

Ryan Isaac:
Okay.

Rabih Dimachki:
There’s a difference between them rising to a certain level and maintaining it, which is somehow healthy. And, or in the sense, continuing to rise with no end in sight.

Ryan Isaac:
Where’s that happening around the world where inflation rises and doesn’t stop if you think of…

Rabih Dimachki:
Well, actually…

Ryan Isaac:
It probably is coupled with currency issues at the same time.

Rabih Dimachki:
In developing countries, like me being Lebanese, there was a huge currency crash losing 90% of its value. And in that case, you need so much to restart the economy, talking about the same about Zimbabwe and Venezuela. This is the case. In the case of developed nations, such as the US, we had the ’70s, and ’80s where inflation was high. If there wasn’t a good policy at that point that solved the problem, yeah, inflation can be more harmful than other correction mechanisms within an economy.

Ryan Isaac:
And we’re experiencing that right now, higher… Just for people at home, what did inflation clock in the last time it was measured, and what is it normally at over long stretches of time?

Rabih Dimachki:
That’s right. There is a difference between not having inflation at all and having a healthy rate of inflation. And studies have shown that a healthy rate of inflation in developed countries is around 2%. Because if prices don’t increase by 2% each year, people will just decide not to purchase because I’ll do it later. And it’ll drag the economy into a recession.

Matt Mulcock:
You want some level of growth, yes.

Ryan Isaac:
Some urgency. Inflation creates a healthy level of urgency when it’s at a healthy level itself.

Rabih Dimachki:
Exactly. So 2% is healthy for developed nations. Currently…

Ryan Isaac:
That’s like my milk, consequently. Okay.

Matt Mulcock:
No.

Ryan Isaac:
Whole milk all the way. I’m just kidding.

Matt Mulcock:
Whole or nothing. The rest is just water.

Ryan Isaac:
Skim and 2% is water. It’s whole milk all the way. Okay. Anyway, go ahead.

Rabih Dimachki:
I’m lactose intolerant. [laughter] We’ll go from there. There are two measures of inflation. You’ve got the CPI, which what we read about, what really affects us, it’s sticking at 8.6% the last reading.

Ryan Isaac:
8.6%. Okay.

Rabih Dimachki:
Year over year. It’s gonna be changing as the base rate come up to the same levels. But the Federal Reserve, which what they look at, is something called the core PCE inflation and it excludes gas and food, which really affect us the most. But those are the stuff that the Fed looks at simply because they think in their monetary policy, raising interest rates can’t affect really the price of these. So core PCE, we’re talking about the 4.9%, 5% level, their long-term target is for that to be going back down to 2%.

Ryan Isaac:
Yeah. That’s kind of an interesting thing in economics. I mean food and gas, the thing that like most people have in common is not included in an inflation number. What would it do if food and gas was included in inflation right now? Would it be much higher?

Matt Mulcock:
Well, you could get those readings, right? I mean like you can get…

Ryan Isaac:
So just track separately.

Matt Mulcock:
They’re not tracking it, but you can get that.

Rabih Dimachki:
No, no, like the CPI is including to a certain percentage gas and food. But here’s the thing, when the Fed tries to intervene into the market to bring interest rates
down, they are only affecting the demand side of our aggregate demand, aggregate supply formula. The price of gas and the price of food is a supply issue. So when you’re playing with the demand, are you really gonna affect it? And it’s an evolving study. Yeah.

Matt Mulcock:
Which brings us to, I think, what the question gets to which is, what is stagflation? That’s what you’re hitting at.

Ryan Isaac:
What is stagflation? And just a reminder, you’re in the worst seat in the house because you have to look at both of us as you answer, but you gotta like talk straight into the mic. [chuckle]

Rabih Dimachki:
My bad. Sorry.

Ryan Isaac:
I don’t want anyone to miss what you’re saying here because this is so good, but you’re in the hardest seat to sit in and talk because you have two people just being weird on both of your sides.

Matt Mulcock:
I’m just literally staring at the side of your face.

Ryan Isaac:
Yeah, me and Matt are like our chairs are turning.

Matt Mulcock:
So tell me about stagflation.

Ryan Isaac:
What is stagflation, my friend?

Rabih Dimachki:
All right. Stagflation is when on one hand you have inflation that we just described and at the same time you have an economic slowdown, which resembles by lower GDP or a change in GDP that’s negative and people being laid off.

Ryan Isaac:
So high inflation and recession when there’s loss of jobs, unemployment spikes, that kind of stuff?

Rabih Dimachki:
Exactly. So, what happened…

Ryan Isaac:
When was the last time we saw that in our country?

Rabih Dimachki:
1974, but it was for a very short period of time. And usually when you have a stagflation, the policies that the Fed utilizes act against each other. So once the Fed comes in to drop inflation by increasing interest rates, what happens is that they push the economy into a recession, increases unemployment rate, which acts… And that’s how you want it. And when they wanna stimulate the economy, they drop interest rates to zero. People find jobs, everyone is happy, but inflation starts rising. So monetary policy on its own is not really the best way out of stagflation, where you have this mix that is counterintuitive to what we think. This is where fiscal comes in or waiting for the economy to grow itself out of this stagflation.

Matt Mulcock:
Do you think this is a bigger risk than maybe we’re giving it credit? Meaning right now I think the conversation is around obviously the comparison between inflation and recession, right? And the Fed is doing their best to control interest rates, move interest rates up. I think a lot of people are saying basically just like, let’s get into a recession because hopefully that’ll stop inflation, right? I think it’s kind of like it’s in either/or, it’s being positioned as an either/or. But where do you think our level of risk is, or fear should be around like maybe this middle road of like it could be both, right?

Rabih Dimachki:
It could be both, a prolonged stagflationary environment is not healthy at all, but there’s a trade off that has to be made in a sense. And this is what the Federal Reserve have been pointing at in the last couple of meetings. And what they’re trying to say is that a labor market with 3.6% unemployment rate, which is at an all time low, is at a great position right now, but it’s not sustainable. The sustainability of the labor market really depends on price stability, which is inflation. So at this point, they have been pushing for something called a soft landing, and this is what we’re hearing on the news. They want to increase interest rates at a pace where it’s not harsh enough that it would cause people to be laid off. However, there are other factors outside just the US economy. We’re talking about a war in Ukraine. We’re talking about COVID-related shutdowns in China, and we’re talking about just very high commodity prices that all have their influences.

Matt Mulcock:
Supply chain issues that haven’t been figured out yet.

Rabih Dimachki:
Supply chain issues. So not everything that we really want to happen is gonna play out the same way. It’s challenging. But on the long run, it’s all healthy for the economy because we know what mechanisms we need to apply.

Ryan Isaac:
Okay. So there you have it, folks. We can shut it down after that. That is inflation versus stagflation.

Matt Mulcock:
Here’s my dilemma when we bring Rabih on. I feel smarter after he talks to me.

Ryan Isaac:
Yes, if I understood him.

Matt Mulcock:
At the same time I feel dumber and I feel a little bit hopeless ’cause I’m like, there is not a chance…

Ryan Isaac:
There’s no way, it’s not ever happening.

Matt Mulcock:
I’d ever be able to attain the level of knowledge this guy has.

Ryan Isaac:
That’s why you just know Rabih. Don’t try to be Rabih.

Matt Mulcock:
Just be his friend. That’s my goal.

Ryan Isaac:
Thanks for that. What else is happening in the economy? Like what’s being talked about right now, what’s big right now?

Rabih Dimachki:
The Federal Reserve is the big topic right now. And we are at this inflection point where we are wondering, will the inflation level peak and start tapering down before we get to a point where the Fed is forced to put the economy into a recession?

Ryan Isaac:
What’s the prediction on will it peak or not peak?

Rabih Dimachki:
You’ll have… This is why it’s uncertain. Even the Federal Reserve right now is waiting for new data to come in or old data to come in.

Ryan Isaac:
It could be month to month, you’re saying?

Rabih Dimachki:
Month to month. And by the end of this month, we’re supposed to get new datas. And based on that, they will adjust their numbers.

Matt Mulcock:
Well, and wasn’t there a bit of a surprise on the last reading where the month prior there was some thought that it was peaking. And then it came out with a reading that was a bit of a shock. It went actually a little higher.

Rabih Dimachki:
That’s right. And that’s why the Fed last minute decided to change the rate type from a 50 basis points, which was communicated to a sudden 75 basis points, but this instilled confidence in the market. Or the other side of the equation where, will we be in a recession before inflation…

Ryan Isaac:
And on purpose? Can you just… Okay. So can you tackle those two sides of that question? Will we be in a recession, like you just said, and what’s the on purpose part? Like you said we’re putting ourselves into a recession on purpose to slow some things down. You mentioned that. What does that mean? Yeah.

Rabih Dimachki:
So if we wanna narrow it down, recession meaning higher unemployment rate, and inflation just the numbers that they are, which one takes… What’s the word?

Matt Mulcock:
Precedent.

Rabih Dimachki:
Precedent.

Ryan Isaac:
Yeah. Higher priority. Yeah.

Rabih Dimachki:
Higher priority against the other one. And it’s easier to go through a period where you have higher unemployment than to go in a period with higher inflation.

Ryan Isaac:
Why? Why is that? I’m just curious.

Rabih Dimachki:
It’s very simple. You go to your boss and you’d be like, Please, I need higher rates. I can’t afford my groceries anymore. Everyone does it. We go into a never ending spiral.

Ryan Isaac:
True. Okay.

Rabih Dimachki:
And you get nowhere. The whole labor market would just get weaker.

Ryan Isaac:
Okay, versus a slightly higher unemployment rate. Yeah. Which is self manageable, self containable.

Matt Mulcock:
Inflation impacts everyone, where a recession, as cold-hearted as it sounds, is impacting a segment of the population, that’s kind of the core of it?

Rabih Dimachki:
That’s right. That’s why when you hear on the news like a company decided to lay off 5%, 10% of its workforce, you look at the stock price, it’s up just because it’s bad for the employees. But what’s happening from the shareholder’s perspective, now the income statement looks better and now the share price is what’s more.

Matt Mulcock:
Dang you capitalism.

Rabih Dimachki:
But this is a healthy pill we have to swallow for the economy to function properly and for us to be able to progress and do all these products and have a better quality of life.

Ryan Isaac:
So another big thing that’s on people’s minds that has to do with all of this is the real estate market right now. What’s going on right now with supply demand, how our interest rates gonna affect all this stuff? Will it come true that everyone hopes we’ll take like a 25% dip in prices and then everyone could go buy the house they’ve had their eyes on? And how does real estate play into the economy as a whole right now?

Rabih Dimachki:
Oh, a loaded question. [laughter] Let’s start with this one. The inflation numbers that we have pre-COVID starting from 2008, we’ve had a chronic under supply of houses in the market.

Ryan Isaac:
Since 2008.

Rabih Dimachki:
Since 2008, because there was a bubble and suddenly everything crashed. And at that point they needed to bring supply and demand into balance. But we didn’t get to that point. We’re still at the dead weight loss position, which means we have more demand for houses than there is available supply. So the way you align it is by killing demand, higher interest rates does that job.

Ryan Isaac:
Take shoppers out of the market.

Rabih Dimachki:
Exactly. Now your mortgage is higher and it’s free floating and not enough people will be able to afford the houses. Will this hit to demand be enough to match it with supply?

Ryan Isaac:
We don’t know.

Rabih Dimachki:
We don’t know, but I doubt it simply because if you’ve been under investing in real estate infrastructure for 10 years, I don’t think…

Ryan Isaac:
The demand is so pent up that there’s nothing you’d really do to… Yeah.

Matt Mulcock:
So crazy stand on this and the numbers…

Ryan Isaac:
Satisfied eventually.

Matt Mulcock:
The numbers might not be exact ’cause I’m going off of my less smart brain than the guy in the middle. But in 1970, we had about 210 million people in America. We were building on average about two million homes a year at that point. The most recent data of like 2021, I think 350 million people building about 1.3 million houses.

Ryan Isaac:
Oh my goodness. So we grew by like 33% or like a… Well, I don’t know what that would be, but yeah. Yeah. Like we were… Yeah.

Matt Mulcock:
And the home building has gone down. So to Rabih’s point like… I think a lot of this has come from ’08, ’09. Like we’re still feeling, home builders are still feeling like trepidation and fear of even like ramping back up ’cause they were the ones left holding the bag. So it’s created like a chronic supply and demand issue.

Ryan Isaac:
A reluctance. Yeah. There’s been reluctance to like to scale up that big like they did before. Wow. Okay. So we’ve covered inflation, interest rates, real estate, unemployment. What else is going on right now? Geopolitical concerns as it’s called, also really crappy war stuff.

Matt Mulcock:
[chuckle] I don’t know why I laughed at that. It was not…

Ryan Isaac:
Yeah, yeah. I mean, it’s just a better way to say it.

Matt Mulcock:
Yeah.

Ryan Isaac:
The stuff going on with Russia and Ukraine, what is that affecting? What is that doing? How does that play out?

Rabih Dimachki:
Yeah, let’s connect the dots for that one. In that geographical region, you’ve got big, huge gas pipes that go into Europe. This supply is a huge constraint at that moment. Ukraine is a big exporter of wheat grains, you can see that over 100% growth in wheat futures for the past year. So those…

Ryan Isaac:
So we should have bought wheat futures instead of Bitcoin?

Rabih Dimachki:
Anything instead of Bitcoin.

[laughter]

Ryan Isaac:
Okay. All right. That’s fair. Okay.

Rabih Dimachki:
But what this means is that those inefficiencies in the oil market and in the wheat market are affecting the economies that utilize them. And this means higher costs of the products, this means, in a sense, a failure to deliver and meet the demand, which is what we’re experiencing. Which means, after all, lost revenue, and lower revenue might reflect itself in the equity markets to be specific here and to lower share prices. So equity markets love when the world is all connected to each other, when money can flow freely between countries, when everything is efficient, and markets are more efficient in reflecting information at that point. When constraints come, it’s harder for them to be able to just express future growth into the numbers. So as those problems hopefully start resolving themselves, there is optimism in our equity markets because future revenue is gonna be coming back at the older growth rates with…

Ryan Isaac:
That’s a perfect segue to… So the question on my mind, I think a lot of people wonder, that’s a slight, what, like 10-minute overview of what’s going on in the economy. I feel like that is just…

Matt Mulcock:
And that sums it up.

Ryan Isaac:
And that’s it. That’s all you need to know.

Matt Mulcock:
Yeah. That’s it’s. That’s all you need to know. Yeah.

Ryan Isaac:
All of that stuff has an effect on the stock market, which is what’s on a lot of our clients’ minds and listeners’ minds. But they’re not the same things, the stock market is not the economy and the economy is not… They don’t perfectly reflect each other. There’s times when there’s really good signals in the economy, but the stock market struggles, and then the reverse. There’s times when the stock market’s doing okay when the economy is actually… I mean, look at 2020-2021, we probably shouldn’t have had a good stock market if it was up to what was going on in the world, right? But we did.

Ryan Isaac:
So can you tell us a little bit about the relationship between big economic stories? ‘Cause we get this from clients, they read the news, they talk to their friends, they go on Facebook, they hear these big stories, that’s the economy, it’s on a global scale. And then there’s… People try to relate that to what’s happening in investments or what will, but can you talk about that relationship, and maybe a healthy way to view those two things?

Rabih Dimachki:
Yes. We’ll have to consider the stock market as a portion of the global economy. So the global economy as a big pizza has…

Ryan Isaac:
Good call.

Matt Mulcock:
Love this, I love where this is going.

Ryan Isaac:
I like where you’re going. Yeah.

Matt Mulcock:
Yeah, it’s almost dinnertime. [chuckle]

Rabih Dimachki:
So as a big pizza, has a consumer health segment in it, a corporate health segment in it, a government health budget surplus deficit health segment.

Matt Mulcock:
These are the toppings? Could we get into the toppings?

Rabih Dimachki:
Those are the toppings.

Matt Mulcock:
Okay.

Rabih Dimachki:
Even if you like pineapple on it.

Matt Mulcock:
Controversial.

Ryan Isaac:
We are not pineapple shaming on the show.

Matt Mulcock:
I might be.

Ryan Isaac:
I’m not.

Matt Mulcock:
Just a little… Okay. Sorry.

Ryan Isaac:
We are pineapple affirming on this show. [laughter]

Rabih Dimachki:
And a net export-import part of it over there. And the stock market is only related to the corporate segment of it. And if you break down the US GDP, where like 70% weight is allocated to the consumers, 18% weight allocated to the corporate, and then eight by eight with a net positive-negative to the other three, which means when big stuff happen at an economic level, we’re talking inflation, interest rate, unemployment, those will affect the livelihood in each of these components. But the effect is gonna be different in one of the other. So the math here is gonna be, how does that translate to that small portion that’s called the corporate sector? And when we’re talking corporate sector, we are talking about their earnings. If their earnings are gonna be well, they’re gonna be good, the stock price should reflect that. If we just…

Ryan Isaac:
But not in real-time. I mean, that’s not how it’s working here.

Rabih Dimachki:
Because the market is forward-looking.

Ryan Isaac:
It’s trying to be forward-looking.

Matt Mulcock:
Well, there’s the sentiment aspect of this as well. Just how people generally feel and they’re not always right, if ever right, as far as pricing things.

Rabih Dimachki:
That’s exactly what it is because the earnings is one part of the PE ratio in a sense. And sentiment comes in into how much shareholders are willing to pay a premium above what the current earnings are just because they believe there are better…

Ryan Isaac:
Believe. Yeah, I say that because it’s kinda cool, this faith aspect of the capital markets.

Rabih Dimachki:
But it is justified in a sense.

Ryan Isaac:
Yeah.

Rabih Dimachki:
The long-term PE ratio for the S&P 500 has been around 16, which means over this whole long period going through multiple crises, the market participants are willing to pay 16 times more than…

Ryan Isaac:
What the market is earning.

Rabih Dimachki:
What the market is earning simply because it’s been paying well, corporations drive productivity, progress the economy, and make everyone’s life better.

Ryan Isaac:
So a common response. I mean, this is like a common reaction that people want to be able to see the news and then react to their portfolios. I’m gonna watch the news and see when I should buy, when I should sell. If it’s bad news, I’ll wait. If it’s good news, I’ll start buying. Why is that tough to do this relationship between news that comes out and the effect it might or might not have on the actual stock market itself?

Rabih Dimachki:
Because it’s not a direct link, there are multiple steps along the way. You will have to listen to what the news is, decide if it’s good and bad, decide what its impact is on the economy, and then see how will the economy react in terms of the policies, how people in power are gonna decide about this news, and then how will that reflect on the corporate sector. Once you determine on that, how will that affect the profitability and the sector I’m looking in, after looking at that, you’ll have to decide how will that affect the company I’m looking at, and whether there are any corporate actions within it. If you can do this whole circle efficiently, you’ll be owning your island.

Matt Mulcock:
It sounds pretty easy, but I think this speaks to what we talked about on the commodities episode we did pretty recently, of like what game are you playing. There’s a big difference between…

Ryan Isaac:
How much time do you have?

Matt Mulcock:
How much time do you have?

Ryan Isaac:
How smart are you? Yeah.

Matt Mulcock:
How smart are you to figure this out? But I think even more so is like, what game are you playing and on what timeline? Because everything you just highlighted would probably make sense to a day trader or someone trading over a short period of time, maybe someone trading commodities, we joked about wheat, what’s happened with wheat prices over the last few months with this war. There are traders out there trading commodities that are tracking this kind of stuff, but that’s very different than the things you’re worried about as a long-term investor.

Ryan Isaac:
As a long-term investor with time ahead of you, controversial it may be to say this, it’s really good to have these times to go through from a market and investing and long-term investing perspective. You need these times when there’s declines of 10, 20, 30%, and you need to be saving throughout them and not waiting for them to end and then get back in… Like you just do it the whole time, the whole time. That’s how you’ll pull it off and you will pull it off. A consistent investor that will do that over 20, 30 years, it’s amazing what that’ll end up being. Rabih, as we wrap up a segment and probably take some more questions here, is there anything else you’d like to maybe just give overview knowing any context of what’s going on and knowing the big question on people’s minds is, Is it okay to be investing money right now? Should I, is it the smart thing? Anything else you wanna say about that?

Rabih Dimachki:
What you guys covered is amazing.

Ryan Isaac:
Wow, coming from you.

Matt Mulcock:
Yes.

Ryan Isaac:
Thanks, buddy. That’s all the validation I ever…

Matt Mulcock:
All I ever need.

Ryan Isaac:
That’s what I showed up here for tonight. Cool. Rabih, thanks for kinda going through that. We’ll take questions and let’s maybe pause and do some questions, and then we’re gonna get to the highly… That’s what everyone’s here live like waiting and everyone should. I can feel that nervous tension behind the keyboard. There are people waiting for the announcement.

Matt Mulcock:
Huge announcement…

Ryan Isaac:
The announcement that’s coming.

Rabih Dimachki:
Yeah, can’t wait.

Ryan Isaac:
Is this what Apple feels like when they get to announce the next thing?

Matt Mulcock:
Absolutely, Tim Cook on the stage is basically like equivalent to that.

Ryan Isaac:
It’s this. This is what it feels like. That’s crazy.

Matt Mulcock:
And probably equal the amount of people that are paying attention.

Ryan Isaac:
Never thought I’d be there. Jess, throw some questions at us. What do we got?

Jess Reynolds:
Sure. I have a dental specific question or I have an interest rate question.

Ryan Isaac:
Let’s go interest rates for Rabih. This sounds like Jeopardy. Interest rates for Rabih, please.

Matt Mulcock:
For $1000.

Jess Reynolds:
And I’ll take your $1000. [laughter] Okay, cool. When the Fed raises interest rates… Oh, and by the way, this question is coming from our chat.

Ryan Isaac:
Thank you. Thank you for the chat.

Jess Reynolds:
Yeah, so drop those in there. Let’s see, when the Fed raises interest rates, does this apply to all interest rates, bank accounts, loan types, et cetera?

Matt Mulcock:
Boom, love this.

Ryan Isaac:
Yeah, our clients and listeners are… And we’re seeing the difference in their student loans, in their practice acquisition loans and refinances, in their home loans, in their building loans. That’s a great question, thanks question asker.

Jess Reynolds:
Lucas.

Ryan Isaac:
Thanks, Lucas. That’s solid. Okay, Rabih.

Rabih Dimachki:
Let’s get into this.

Ryan Isaac:
Give us the answer.

Matt Mulcock:
I love when Rabih rubs his hands.

Ryan Isaac:
Yeah, you know you’re [0:29:45.7] ____.

Rabih Dimachki:
I’m ready for this. So let’s think about the Federal Reserve as a very big buyer in the market. When you go and want to buy and sell from that Federal reserve, let’s say Matt is the Fed, right?

Matt Mulcock:
I will be the Fed. I’ll be the big bad buyer, yeah.

Ryan Isaac:
He looks Fed.

Rabih Dimachki:
He is so big and powerful that he can decide at what rate he wants to give me money, I’ll go to him, “Please, can you lend me some money?”

Ryan Isaac:
Wait, just so everyone knows basic economics, who’s going to the Fed for money, and why?

Rabih Dimachki:
Banks.

Ryan Isaac:
Banks are going to the Fed for money because that’s how they get their liquidity.

Rabih Dimachki:
This is how they get their liquidity.

Ryan Isaac:
To loan and do business.

Rabih Dimachki:
Flows between banks.

Ryan Isaac:
What you’re saying the banks don’t hold like a trillion dollars in their vault?

Rabih Dimachki:
Not necessarily.

Matt Mulcock:
Numbers on a screen.

Ryan Isaac:
Okay, anyway, so the banks are going to the Fed, and the Fed controls at what rate they are going to give money to the banks.

Matt Mulcock:
Excuse me, I control the rate.

Ryan Isaac:
Matt controls the rate.

Rabih Dimachki:
Matt controls the rate and each day or each quarter, he decides what that rate is going to be, and this is what we call the Fed fund rate. And as banks, you and I are banks and Matt is the Fed, when we want to do our business, whether it was give credit cards or give student loans or give mortgages…

Ryan Isaac:
Depending on the industry we’re in, the people we serve, okay.

Rabih Dimachki:
Exactly. We’re gonna go take that money from the Fed, put a markup on top of it, because we still wanna make money, and go give it to the consumer.

Ryan Isaac:
Now, the markup just so I’m clear, the markup will depend on who I’m lending to, right? Credit scores. So if my crowd is like low credit score credit card borrowers, my markup is huge because my risk is higher, but if it’s a bunch of dentists, the markup’s not that high ’cause these are great borrowers and they pay back all their money every time.

Rabih Dimachki:
Exactly, so to answer…

Ryan Isaac:
So that’s why you see the variability in loan types, even though the interest rates are like we’re bumping up rates, loan, different types of loans are still at variable different rates.

Rabih Dimachki:
0:31:30.7 RD: Exactly what you’re saying. So there’s a base rate that is so important for the banks because it affects their profitability, that’s the…

Ryan Isaac:
It’s their cost of business, it’s like their cost of goods sold basically.

Rabih Dimachki:
Exactly, and when this changes, it trickles down to how much the banks are pricing, and that will depend on the credit.

Matt Mulcock:
Which is one of the biggest factors. Tell me if I’m understanding this right, of when the Fed raises these rates, they’re trying to suck up some of the liquidity, some of the cash that’s out there, slowing the economy, hopefully slowing… It’s all connected.

Rabih Dimachki:
Exactly, because if money is expensive, I have less to lend out.

Matt Mulcock:
Yeah, yeah.

Ryan Isaac:
And less people who want to borrow it.

Rabih Dimachki:
Because it’s hard to repay.

Ryan Isaac:
Because it’s hard to repay ’cause it’s more expensive.

Matt Mulcock:
And the bottom line is I feel drunk with power right now.

Ryan Isaac:
You always are drunk with power.

Matt Mulcock:
Cause I’m controlling the rates, man.

Ryan Isaac:
Or just drunk, I don’t know.

Matt Mulcock:
Maybe I’m just drunk, who knows? It is late.

Ryan Isaac:
Okay. Lucas, great question. That’s really cool. That helps me understand too, ’cause it is kinda crazy to look across the spectrum of types of loans that our dentists have to get in. They’re all over the place. Houses being some of the biggest ones that we’re seeing. The biggest increase of hit, but you’re seeing practice loans still…

Matt Mulcock:
I’m still seeing…

Ryan Isaac:
In the threes…

Matt Mulcock:
High threes, low fours. It’s been a few weeks since then, so I think they’re probably up, but still if you compare that to what you’re seeing on mortgage rates you’re seeing, like you said, credit cards or lines of credit, it’s still significantly low, ’cause to your point, dentists are still such safe bets.

Ryan Isaac:
Yeah, totally.

Matt Mulcock:
The banks are willing to take less of a spread.

Ryan Isaac:
Safe bets. What was the other question? Dental-specific question.

Jess Reynolds:
Yeah, so this actually came from a client. With all of this inflation, when should a dentist/ortho be raising their prices if they have that ability?

Ryan Isaac:
I wish I had a good practice consultant in the room. Yeah. Matt, you tell me what your take is. I would say that all the smart consultants I’ve heard talk about pricing will say that that’s something that needs to be… Your fees need to be revisited every three years, I think is what I’ve heard and should be increased, you should be increasing your fee. I’m not sure. I don’t feel like I know what that rate should be, or I think a great question would be, let’s say you’re on a schedule of fee increases every three to five years or something, that’s what you and your practice have decided, but what if there’s a period of high inflation, can an orthodontist charge an extra for $500 for braces for the next 18 months? I don’t think I’ve ever seen that.

Matt Mulcock:
Yeah.

Ryan Isaac:
Like at the grocery store…

Matt Mulcock:
And then you’re saying to bring it back down?

Ryan Isaac:
Yeah, like I was telling you this story earlier, but I… My daughter’s favorite In-N-Out is the number three, no onions, and rootbeer, no ice.

Matt Mulcock:
Yeah, ’cause she’s like European apparently.

Ryan Isaac:
Is that a European thing?

Matt Mulcock:
No ice, I think it’s European.

Ryan Isaac:
I think it’s weird. Warm rootbeer is weird.

Rabih Dimachki:
I would say Americans really love their ice.

Ryan Isaac:
I love my ice. Pebble ice makers are like $600. Anyway, I take it, it’s normally like a $5 meal and now it’s like $7.50 or something. I don’t know if that will go back down, but the industries where they can bump and spike, I don’t think that’s something that dentists can do. But that’s kind of an interesting thing, can an orthodontist pass along a fee increase for the next year, 18 months? And then just be like, “Well, sorry, you were one of the patients in the expensive of time. Business got expensive, we had to pass it along, but now we’ve dropped it again.”

Matt Mulcock:
But I think that natural, you were alluding to earlier, the natural price increases is a natural healthy part of an economy. It’s just if it gets… I think what you’re hitting on, is if it gets too aggressive too quickly, it turns into upward spiral. Right?

Ryan Isaac:
Fast.

Rabih Dimachki:
Exactly.

Matt Mulcock:
So to the question though, to your point, Ryan, it’s not like we’re gonna be able to sit here and say what you should be…

Ryan Isaac:
Do or don’t.

Matt Mulcock:
Yeah, but I will say it seems common, or I shouldn’t say common sense, it seems like a natural thing to be thinking about to say, should you be revisiting it right now? I think 100%, yes.

Ryan Isaac:
Probably a great time to think about it.

Matt Mulcock:
A 100%

Ryan Isaac:
Especially if it’s been a few years.

Matt Mulcock:
Well, if you think about the squeeze you’re feeling right now as a dentist or an ortho or a specialist of any kind, right now you’re feeling a squeeze of the labor market and right now of having to increase wages to keep staff. So, unless you’re just willing to take that profit margin hit, which maybe you are, and say we’re gonna eventually figure this out. I think it’s a perfectly fine… The perfect time to be sitting here saying, “Yeah, we need to revisit our fees.”

Ryan Isaac:
Let’s do one more question.

Jess Reynolds:
Okay.

Ryan Isaac:
Yeah.

Jess Reynolds:
Let’s see. How long will my portfolio be down because of the recession?

Matt Mulcock:
Let me tell you, I think I have a date. [chuckle]

Ryan Isaac:
Well, this begs the question of the relationship between a market going up or down and a recession. From my memory, which is getting worse… [chuckle]

Matt Mulcock:
You’re getting old, man, you’re getting old.

Ryan Isaac:
I think it was almost 50-50 where recessions had positive and negative markets as measured by an index S&P. It was a little slightly in favor of, more often than not, the markets are down when there’s a recession, but it’s not like you would think. I would think, Oh, recession markets are down 95% of the time, and it was…

Matt Mulcock:
It’s like 50-50.

Ryan Isaac:
If it wasn’t 50, 50, it was like close. Yeah, like 60, 40, between that.

Matt Mulcock:
But I think this question, I’m going to guess that they are using recession and bear market interchangeably?

Ryan Isaac:
Yeah, a lot of phrases that get thrown around.

Matt Mulcock:
Yeah.

Ryan Isaac:
Maybe people don’t understand.

Matt Mulcock:
So I’m gonna assume they’re maybe saying…

Ryan Isaac:
What was the exact phrasing of the question?

Jess Reynolds:
How long will my portfolio be down because of the recession?

Ryan Isaac:
How long will it be down? We’re not even technically in a recession as of this recording.

Matt Mulcock:
We don’t know, it could be… This month…

Ryan Isaac:
We don’t know.

Matt Mulcock:
We don’t know yet, but.

Rabih Dimachki:
We don’t know. An economic recession is two consecutive quarters of negative GDP growth. We don’t have the one for Q2 yet, but Q1 one was -1.5%. As for a bear market, which is an equity market recession…

Matt Mulcock:
We’re in it.

Rabih Dimachki:
Is a drop of 20%. We are really around that…

Matt Mulcock:
So I think to that point, my guess, again… Or maybe we just assume, let’s assume that they’re using recession when they’re really meaning bear market. So I think the question might be, How long could we expect a bear market to last?

Ryan Isaac:
Yeah.

Matt Mulcock:
How long would be… An average bear market, how long is that gonna last?

Ryan Isaac:
And does it coincide perfectly with the timing of a recession? And it’s no.

Matt Mulcock:
No. That part is no.

Ryan Isaac:
Okay, I just Googled the average bear market lasts about 9.6 months.

Matt Mulcock:
I was gonna say 10. I think we’ve talked about this a lot.

Ryan Isaac:
So the longest was in March of 2000, 2.7 years, that was the longest ever, March of 2000, that was the longest bear market.

Matt Mulcock:
So, there you go. Let’s just call it a year. Just expect a year.

Ryan Isaac:
And again, if you’re a multi-decade investor ahead of you, and again, this actually isn’t an age thing because you could be 60 years old.

Matt Mulcock:
And still have…

Ryan Isaac:
Well, yeah, you might have a Roth IRA or regular IRA, a brokerage account, a 401k and a profit sharing, and a pension plan, and you’re gonna sell a practice and you’re 60 years old, all of your accounts aren’t gonna come to you right now.

Matt Mulcock:
No.

Ryan Isaac:
But you’re not gonna go spend out of all of them right now. So, they don’t all have the same time frame even. This goes to…

Matt Mulcock:
Your investing career could you still easily be 25 years.

Ryan Isaac:
Easily.

Matt Mulcock:
Yeah.

Ryan Isaac:
So, take it for what it’s worth, the bear market lengths. Alright. We should jump into this. I think we left less time for this part of it than we were supposed to.

Matt Mulcock:
We probably did, yeah.

Ryan Isaac:
Do you wanna do any… You have some of the things you wanna hit. Here’s what I’ll do. Matt, I’m gonna walk through some of the back story of where this… And then you get to do the big thing.

Matt Mulcock:
Yeah, that’s great.

Ryan Isaac:
So anyway, we started this company about 15 years ago, it’s all been dentists. The core service for all of this time has always been a very personal relationship with a one-on-one financial advisor. It’s a thing where, when someone hires us, we go into an onboarding process that is weeks long diving in, and like building a dashboard of someone’s life, and diving into every possible detail of your income and taxes and spending and insurance and loans. And we get to know everything that’s going on in your financial life before we make recommendations, before we implement anything, before we can even start a plan. And so that’s been our core service for a long time. And you can imagine though that fits a demographic of dentists perfectly for some people.

Ryan Isaac:
And our core demographic, like average, has been a practice owner, usually in their late 30s, early 40s, who’s got cash flow and savings, and they’re trying to offload these jobs and they’re trying to have a person in their life to do all these things. However, there is a huge segment of the market that is pretty underserved, and that is a new dentist, a new graduate, a more simple situation. We’re seeing more… With the rise of corporate dentistry, we’re seeing more and more career associates, or just people who are just getting started or a brand new startups, people whose lives and situations are a lot less complex. They haven’t even like really hit their startup with cash flow. They’re still trying to make major decisions of like where to live, what city to move into, buy or rent a house, and should I practice or join somewhere.

Matt Mulcock:
I’ll add one thing to that. Just that personality type.

Ryan Isaac:
Yeah.

Matt Mulcock:
It also comes down to that demographic you’re speaking about is also someone who wants to be more like, do it yourself. They still want advice, but they’re not necessarily needing like accountability.

Ryan Isaac:
That’s a lot of people.

Matt Mulcock:
Completely. It’s a lot of people, yeah.

Ryan Isaac:
That’s a lot of people and not every company can go be all things to all people. And you know that as a dental practice, you serve your market and you serve your niche and you try to do the best you can. And that’s what we’ve done. Our goal here is that within our limits, without trying to be all things to all people, we want every dentist to be able to have… I don’t how you would put it, our tagline on the show is to help dentist make smart financial decisions. On a bigger scale, I think we want people to have the money and finance part of their lives be the thing that facilitates happiness and like fulfillment in their life, right? Not just the end goal of a big network.

Matt Mulcock:
Yeah.

Ryan Isaac:
So to do that, like we’ve known that not every client is a good fit for a long-term, like serious one-on-one relationship. What we’ve worked on and built now that Matt we will talk about here. This is is kind of like our solution to the segment of the market that is not our one-on-one personal, like, we call it personal wealth management, but like our kind of deep dive having a one-on-one advisor. It’s our way of saying, Well, how can we as a business while still being smart business people provide resources, education, content, and some accountability and some tools to a segment of the market that’s not gonna hire us maybe ever for that like one-on-one service, or maybe just not now?

Ryan Isaac:
And that’s a lot of our clients we have now really are people who we met. I mean, I still do this on calls. I just did this. I imagine all of our advisors are still doing this, you talk to someone you’re like, Our service is overkill for you right now. Like here’s some stuff to go do, but we haven’t… That’s felt weird though, too. Does that feel weird to you?

Matt Mulcock:
Yeah.

Ryan Isaac:
To be like, I have nothing for you. I don’t know where to send you other than like, here’s some free resources, listen to the podcast or call me back in three years.

Matt Mulcock:
Or, Hey right know you need to focus on hiring a consultant and get your business in the right place.

Ryan Isaac:
Yeah. Here’s your three next steps with cash flow. And it’s gonna take you a couple years, call me back. The crazy thing is they do. All the time, we still hire people in our private wealth management services that we talked to years ago. But in the meantime, here’s where I’m getting at this, what do we do in the meantime, what’s reasonable for us as a business to provide for people in the meantime that either aren’t ready or just maybe never will fit that model, but how can we still give something that we know is valuable to a segment of the market that needs it?

Matt Mulcock:
Yeah.

Ryan Isaac:
And that, my friends, is where we came up with the Dentist Money membership. Insert soundtracks.

Matt Mulcock:
Music, or the confetti.

Ryan Isaac:
Confetti and fireworks and some like patriotic song.

Jess Reynolds:
Yeah. Noted for fanfare. [laughter]

Ryan Isaac:
Noted for fanfare. So let’s talk a little bit about this. Moving forward, and I know I think it’s being… There’s people in it right now. It’s live.

Matt Mulcock:
Oh, we’ve got members ready to go. They’re signed up. Yeah.

Ryan Isaac:
Signed up. It’s live. It’s running right now. So moving forward, this is something you’ll see at dentistadvisors.com. You’ll see more content, more videos coming up about this moving forward.

Matt Mulcock:
It is actually a new website you can go to.

Ryan Isaac:
Okay. So Matt, take it from here, Matt. Tell us about what this dentist money membership is, kind of what’s the structure of it, what does it do.

Matt Mulcock:
Yeah. Yeah for sure. So again, just like you alluded to, you have set it up perfectly, it’s kind of this middle ground. It’s, Hey, I want something more than the free content and education you’re putting out there, which, again, nothing’s changing with that, but I’m not fully ready for all services. Again, we totally get that.

Ryan Isaac:
Or maybe I never want it.

Matt Mulcock:
Or maybe I never want it. No, like totally. That’s fine. We’ve never shied away from saying…

Ryan Isaac:
We’re still friends.

Matt Mulcock:
We’re still friends and there’s nothing wrong with that. There’s nothing wrong with you saying, I’m not ready or never will be ready for a full one-on-one, or just maybe it’s not the right time in my life.

Ryan Isaac:
Yeah. Which is really common. Really, really common. Timing’s everything.

Matt Mulcock:
And let me just say, I’m gonna add one thing to your setup here. This truly comes down to like the foundation of all this is the people. No, and I don’t mean that joking, like clients out there or non-clients, dentists at events, people that send us emails, that are on Facebook, we are constantly, we’ve constantly been getting comments and questions that appointed to this over the years, that appointed to this very service model or this added resource for people out there. So really what this is that middle point of saying… Between those two things. How it’s structured is it is a membership program, so you pay either a monthly and or annual fee, it’s up to you. You are given access to tons of kind of just baseline features. You’re gonna get access to more exclusive content. You’re getting access to a benchmark serving. You’re gonna get access to our quarterly client-only huddles.

Matt Mulcock:
Probably the most, I think, most impactful thing that we’re most excited about is this is giving you access to coaching sessions with advisors.

Ryan Isaac:
Like on demand.

Matt Mulcock:
With our on demand coaching sessions.

Ryan Isaac:
Yeah. Which is something that’s been a request for 15 years.

Matt Mulcock:
Yes.

Ryan Isaac:
Like, I don’t wanna hire you or I’m not ready to hire you. Can I just like pay you for a session? And as much as you’d love to do that, it hasn’t been in our business model. It’s not something we could accommodate up to this point. So on demand, yeah, tell us about that, man, on demand coaching sessions.

Matt Mulcock:
Yeah. So it’s exactly what you just said. We’ve been asked about this for so long. So again, this is where you can set up a time to talk to an advisor with zero commitment of a long-term relationship. It’s pay as you need it. You might like, to your point, you might be someone who either has a less complex situation possibly, or you have a complex situation but you wanna… You’re doing it yourself for the most part. You’re just wanting some advice.

Ryan Isaac:
Or maybe you already have another advisor.

Matt Mulcock:
Maybe you have another advisor.

Ryan Isaac:
And we get this request all the time. Can I just spend a couple hours with you and get a second pair of eyes? It’s like, Well, I’d love to, but that’s some work.

Matt Mulcock:
Exactly.

Ryan Isaac:
Now we can accommodate that.

Matt Mulcock:
That’s actually been a lot of what people have talked about…

Ryan Isaac:
I want a second opinion.

Matt Mulcock:
Can I just come talk to you and get your view of like they’re pitching or presenting this as a strategy or a solution or a product, what do you think?

Ryan Isaac:
Super cool.

Matt Mulcock:
So it’s really a great way for you to get full access to objective advice without having to like jump in with both feet. You can kind of, as they say, dip your toe.

Ryan Isaac:
Dip the toe.

Matt Mulcock:
At your pace.

Ryan Isaac:
Yeah.

Matt Mulcock:
I’m gonna make sure I’m not forgetting any features.

Ryan Isaac:
Okay. Well, we’ve also got… Tell us about portfolios and maybe, Rabih, you want to chime in with this too because you were instrumental in getting this set up and designing all this stuff.

Matt Mulcock:
Oh really quick. I forgot the best feature here.

Ryan Isaac:
Okay. Yeah.

Matt Mulcock:
You’re getting access to the Elements app.

Ryan Isaac:
Yeah. Well I was gonna go there next.

Matt Mulcock:
Oh okay. We’ll come back. We’ll circle back.

Ryan Isaac:
Okay. Let’s go portfolios.

Matt Mulcock:
Portfolios.

Ryan Isaac:
What is someone in the dentist money membership, what will they encounter or experience with investing money or like how to do that?

Rabih Dimachki:
Yeah, we get it. People love to have an oversight over their own investment and they want to utilize technology where a robo-advisor can help them, but it really takes some effort to decide on what the proper allocation might be or when is a time where an allocation might be changing. And we’re trying to find the middle point over here. We want to provide the Dentist Advisor global diversification strategy along with any changes along the way that might happen on a robo-advisor platform. So people who are interested in DMM can just log in and create an robo-advisor account where it’ll automatically trade their account, rebalancing it for them.

Ryan Isaac:
Using our portfolios.

Rabih Dimachki:
Using our portfolios. And this is how we’re gonna be striking the balance, helping them design the strategy that they want.

Ryan Isaac:
Yeah. So, and they’re still, again, like they’re still in charge of their investments. They’re still kind of… But they’re using kind of the oversight that we’re providing on the investment, like design side of things. Okay.

Matt Mulcock:
Yep. One additional feature I wanted to add that I didn’t is they’re getting access to an approved and continually vetted list of partners. And I cannot emphasize that enough that this is not just people pay us to get on some list that we’re marketing to our clients.

Ryan Isaac:
Yeah. I don’t like that.

Matt Mulcock:
Not at all.

Ryan Isaac:
So wouldn’t do that.

Matt Mulcock:
We not only are vetting them before, as they get on our… To get on our list and we’re approving them, but we will actually continually vet that list. So every single… For example, if we’re getting feedback on a partner from members, negative feedback, we will address that by vetting that every single year and saying, Maybe you’re no longer an approved partner. So it’s very, very different than just like, Oh, these guys paid us to get on our list. So you’re getting access to that as well from practice consultants, CPAs, bankers, all of the above.

Ryan Isaac:
Yeah. And whenever you talk about that kind of connection, I always think, not only do we vet what they’re doing, but you want a partner that knows what… That they know what we are doing.

Matt Mulcock:
Yeah.

Ryan Isaac:
Everyone has encountered that before where you’re interested in their thing and they’re like, Yeah, cool. Let’s go. And you’re like, Well, do you have any questions? Do you have any questions for me? Do you care at all if I’m like the guy selling annuities egregiously to people who don’t need them, or do you care if I’m a good advisor?

Matt Mulcock:
That’s my side hustle.

Ryan Isaac:
That’s your side hustle.

Matt Mulcock:
Yeah.

Ryan Isaac:
So yeah. I mean there are people who also care what we do. Like, they have an opinion like which matters. Okay. So private content, exclusive content and ongoing like live content, which is really cool where they can participate and ask questions. That’s not open to the public.

Matt Mulcock:
Hours and hours of CE content.

Ryan Isaac:
Yeah, tons of it. We’ve covered the investment piece of it, portfolios, on demand, access to an advisor where you can sign up for a… What do we it, call coaching session?

Matt Mulcock:
Coaching session.

Rabih Dimachki:
CFP advisor, dental specific.

Ryan Isaac:
And dental specific CF, really, dental specific CFP advisor. And then the last piece is a technology piece that a lot of people are familiar with, something we invented in Dentist Advisors that has spun off into its own universe.

Matt Mulcock:
Its own beast.

Ryan Isaac:
Its own like solar system basically. And that’s the Elements app, it’s the Elements framework of financial planning and accountability and kind of tracking and analytics, but it’s in an app. Right now, which is only exclusive to financial advisors, but will be accessible through the Dentist Money membership, the people who are involved in that, the Elements app and it looks cool.

Matt Mulcock:
So it’s amazing.

Ryan Isaac:
And they keep adding new features like every week.

Matt Mulcock:
Oh, it’s like we’re getting emails like every week.

Ryan Isaac:
Super cool.

Matt Mulcock:
So that again reinforces this whole idea of like you can… You’re in the driver’s seat, you build out your app, you track your data, you get organized, you’re tracking your progress. And then that’s kind of the foundation of us being able to give you advice through these coaching sessions that again you control if and when you’re ready to set up a coaching session for the right time in your life. So it coincides perfectly with the foundation of it being, again, that Elements app.

Ryan Isaac:
You go to dentistmoney.com. Is that the right one?

Matt Mulcock:
Dentistmoney.com.

Ryan Isaac:
Dentistmoney.com. You can see all of the details about the new Dentist Money membership, the pricing. There might even be some offers on there right now if you’re like listening live or when this episode comes out really soon, some kind of incentives as it’s building up, but we…

Matt Mulcock:
Also on there, you can set up a consultation, a 15-minute consultation if you have more questions.

Ryan Isaac:
So yeah. Similar to everything else. So dentistmoney.com. And you can… But as always, if you have any questions about like, What’s the difference between this, and private wealth management, and when do I need a one-on-one advisor that’s always with me that we kind of dig in deep and we’re always together versus like kind of a one-off thing that I’m mostly doing with myself and with some resources? You can go to dentistadvisors.com, book a free consultation. We’ll walk you through any of this stuff. But yeah, it’s dentistmoney.com and dentistadvisors.com. And now we have two websites.

Matt Mulcock:
Now we have two.

Ryan Isaac:
That we can tell people to go.

Matt Mulcock:
I think that’s when you know you’ve made, is like, Oh…

Ryan Isaac:
When you got more website.

Matt Mulcock:
Which website? What’s your website? Which one?

Ryan Isaac:
They are $10 apiece, so I have a few. Anything we’re missing here? Anything that we failed to mention, anyone we didn’t say hello to, or thank you to? I don’t even wanna like begin the path of thanking and congratulating all the people involved for building this thing because I probably won’t even do it justice at all, but people have been working very, very, very hard on this for over a year. The idea has been going for years.

Matt Mulcock:
The idea has been going for…

Ryan Isaac:
How do we do something like this for a long time?

Matt Mulcock:
A long time.

Ryan Isaac:
But the last 12 months…

Matt Mulcock:
But it’s probably 12 months…

Ryan Isaac:
You guys have been…

Matt Mulcock:
Cranking on it. Yeah.

Ryan Isaac:
Just digging in. So thank you to everyone that’s been working on it. We’re stoked for all the people that are already in it.

Matt Mulcock:
Yeah.

Ryan Isaac:
We’re already seeing coaching sessions being signed up and we have lots of cool content that’s planned and excited to get that going. So anything else, guys?

Matt Mulcock:
No, that’s it.

Ryan Isaac:
For the live audience of the Dentist Money Show.

Matt Mulcock:
For the live audience.

Ryan Isaac:
We thank everyone for being here. Thanks, Rabih, for joining us. You’re coming back again soon. That’s no question.

Matt Mulcock:
It’s gonna be a regular thing.

Ryan Isaac:
Thanks for everyone tuning in. Dentistadvisors.com, dentistmoney.com. We’ll catch you next time on another episode of Dentist Money Show. Take care now. Bye bye.

Behavioral Finance

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