What Is Your Financial Advisor Doing With Your Money?

On this episode of The Dentist Money Show, Matt and Taylor explain why dentists don’t need an advisor to beat the market, they need one to help them avoid costly mistakes and stay invested. They explore the gap between investment returns and investor returns, why behavior often hurts long-term performance, and how advisors add value through portfolio construction, rebalancing, tax efficiency, withdrawal strategy, and behavioral coaching. If you’ve ever wondered what an advisor should be doing with your money, this episode offers a look inside Dentist Advisors’ philosophy and how we invest clients’ portfolios.

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Podcast Transcript

Matt Mulcock: Welcome back to the Dentist money show where we help Dentist make smart financial decisions. I am Matt. And I’m with, I’m with the guy that doesn’t have a nickname yet. don’t think Taylor, maybe milk mustache Sutterfield Taylor. How are you?

Taylor: I like that a lot better than the last one we proposed. We talked about how my older sister used to call me Tay Tay. Since then, I’ve had several clients call me Tay Tay.

Matt Mulcock: What was the last one I didn’t remember? yeah, I forgot. Dang it. Call you Tay-Tay. Okay. We could Tay-Tay. think milk mustache works. have an inside joke. If you don’t know here at Dentist advisors about the amount of milk that this man consumes. And I’ve never met anyone in my life that consumes as much as you do. So it’s funny to us because we talk about it all the time and we’ve been on meetings before when you’re like taking a big glass of.

Taylor: Yeah.

Matt Mulcock: A big sip of your milk. so anyway, milk mustache, Taytay. don’t know what we’ll keep workshopping it.

Taylor: If I’m on a desert island and I can only have one drink, it’s 1000 % milk. You know?

Matt Mulcock: It’s milk. I can’t even tell you the last time I had a glass of milk, honestly. So I think that’s amazing. My kids don’t even really drink that much milk anymore. Maybe it’s a me problem. I don’t know.

Taylor: Yeah. Well, we go through five to six gallons a week.

Matt Mulcock: That’s wild. It’s wild. It’s part of your budget. You have an envelope for your milk.

Taylor: I calculated the calories on that because I personally, before being married, I would go through two gallons a week. That was like my personal consumption. And that ends up being, I think it was like 2000 calories a week just from milk.

Matt Mulcock: Don’t do that. a week. It’s impressive. It’s impressive. I like it. There’s worse habits for people. you know, of all the habits or addictions, that’s probably one that fits in the healthy category.

Taylor: And that’s why I get, sometimes I get grief from people because I drink 2 % and not whole milk.

Matt Mulcock: Yeah, I mean, that’s my problem with it. If you’re going to do it, commit to the bit, you know?

Taylor: And I’m like, you know what? I’m going, it would be 2,500 calories a week if I did whole. By doing 2%, it’s 2,000. So it’s like, when you drink the quantity, you have to sacrifice in some areas.

Matt Mulcock: a little bit less. Yeah, I like it. I like it. I saw it the other day. I got this for my kids. They occasionally drink cereal protein milk. And as a Jim bro, I kind of love that. So I’m kind of into the protein milk. We digress. Taylor today we are not talking milk and I don’t know how to segue this, but we’re just going to jump in. We are so this show is brought to you by Dentist advisors. That’s the company that we own and run, and we’ve been running it for this company has been around for almost 20 years now. And dentists advisors is we are advisors for dentists. So shocker, financial planning and investment management. And a lot of the things we really emphasize at our firm and on this show is all around the planning where we consider ourselves a planning first firm. talk a lot about financial planning and everything that encompasses. But what we have tried to start doing more of is talking about the roles, the role of an advisor in your life specific to investment management. And we don’t want it to go so far that we don’t emphasize the importance of investment management and the role of an advisor in your life when it comes to investment management. I think there’s a lot of misconceptions around that, around what that even, what that job to be done is. So that’s what we want to talk about today dispelling the myths and just talking about the things around the role and the value of an advisor in a client’s life specific to investment management. Anything you want to add there.

Taylor: Yeah. And I would say, I think what we want to highlight today is what we think our job is when it comes to investment management. What a client thinks or what other firms may think, right? Because again, we say this all the time, there’s no one right way to invest. There’s a lot of different ways to do it. But I think the way we approach investing is unique, right? And we think it’s really helpful and valuable to our clients, right? But it is different.

Matt Mulcock: Versus maybe what a client thinks or a dentist thinks. Yeah. Yeah.

Taylor: It’s different than what you would expect. I mean, if you go through the course of financial advising as a profession, like way back when it was literally just to, you know, take, take stock positions, actually trade for clients, right? was calling someone up on the phone saying, I want to buy X amount of such and such a stock and then having an advisor actually do that. And it’s morphed throughout the years. Right. And I think there’s still a good chunk of people that believe in advisors job is to go out there and invest their money for them and, you know, have the secret sauce and know something more than the average person and go out there and quote unquote beat the market. Right.

Matt Mulcock: Yep. Yeah. I think that’s true. I people want to believe that. think sometimes advisors want to still, a lot of advisors still sell on that. It’s, it’s much easier to sell that story of I’ve got a better mousetrap.

Taylor: yeah. I know plenty of advisors that still believe this is their value add. They believe their value add is to stock pick essentially. Which, spoiler alert, that’s not what we believe. If you are listening to this, hoping to get the next hot stock tip, that’s not the point of this.

Matt Mulcock: Yeah. Yeah. It’s not what we do. We’re fresh out. We’re fresh out of the hot stock tips, but I do think that’s a critical place to start this conversation, Taylor. And I want, I know you’ve got a, I think a great story to set this up as we get into this, but just to that point of this, sometimes a aligned incentive in poor incentives, advisors out there want to tell the story that they can beat the market or they’ve got some special investment. It’s sexy. It’s this new thing. And then the consumer on the other side wants it to be true. And so a lot of times that’s what leads to, I think that’s one of the real big reasons of a poor reputation of our space, of the advisor space is because of this concept that people just don’t want to be honest about what, what we actually do around investment management, what the actual value is. And so that’s again, we want to talk about today. let’s, I know you’ve got a story, I think to set this up really well.

Taylor: Yeah, well, and we’re talking about people in general, like, oh, this is what people believe, but this is what I believed coming into the profession, right? I thought that this was my job when I first started, right? So just to give you some background, like, I know that you wanted to be a dental-specific financial advisor from the time you were like a little boy, right? Yeah, so most kids grow up wanting to be dental-specific financial advisors.

Matt Mulcock: Ever since I was a kid. Yeah, second grade drawing it a little picture, yeah. Totally.

Taylor: But that was not my journey, right? I did not. I honestly grew up and I thought I wanted to be a dentist funny enough, right? I, you know, I, maybe we talked about it, but like I thought so. And the reason that I thought this was I worked at a local country club growing up.

Matt Mulcock: You wanted to be an accountant. Wait, did I not know this?

Taylor: And everyone that was at this country club was either a doctor or a dentist. Right. So I was like, well, if I want to be able to join a country club someday, I have to be a doctor or a dentist. Right. And, um, I, thought, well, you know, just interacting with the dentists, I naturally liked them more than the doctors. had a couple of very pretentious doctors interactions. And I was like, I don’t like these guys. I’m not, I’m not doing this. So.

Matt Mulcock: Think dentists do tend to be cooler just generally speaking. Yeah, I agree.

Taylor: A little bit more down to earth, I would say. So, but I was like, okay, I’m to be a dentist. But then I learned something about myself when I first had to go have my blood drawn. And the first time I had my blood drawn, I was standing up. And then I wasn’t standing up. And I was down. And then I broke my pinky toe in high school. And we were staring at each other. No, no.

Matt Mulcock: I think you were not. I thought you were saying you broke your pinky toe when you, when you passed out. Okay. Got it.

Taylor: No, this is a separate story. This is even worse. This is even worse because that wouldn’t be like, Oh, I passed out. broke my pinky toe. So no, I broke my pinky toe playing sand volleyball. You know, it’s smashed someone’s back of their ankle. Uh, but we were in the doctor’s office looking at the X-ray and again, boom, I’m on the floor. Just looking at my X-ray from my broken pinky toe. So I at the time said it was because my knee was locked.

Matt Mulcock: Yeah. Yep, naturally. Whoa. That ended your day.

Taylor: But if I’m being honest with myself, I just get really, really squeamish when it comes to all things bodily. So I can’t even watch like really gory movies. It just makes me sick inside. I don’t know what it is, but I learned that about myself and I was like, you know what? I can’t keep doing this. I can’t do this pre-med, pre-dentist, pre-you know, whatever it is. I can’t do this. So then I was like, well, maybe I’ll go be an attorney. So I did an internship.

Matt Mulcock: Yeah. Yeah. That ended your career.

Taylor: I tried, you know, went to a law firm and it was terrible. I was like, no chance. I’m not doing this, right? And then I was like, well, what the heck am I going to do? I guess I’ll go take some business courses. And then I got swept up in the machine of BYU accounting. So for those of you that don’t know, BYU has like a nationally ranked program, you know, depending on the year.

Matt Mulcock: You passed out again for different reasons. I think number one in the country, actually, isn’t it?

Taylor: There are always

Matt Mulcock: Yeah.

Taylor: Top three that have been for the last 30 plus years. But because of this, each one of the big four accounting firms, right, that’s KPMG, EY, PWC, and Deloitte, right, they all each spend a little over a million dollars recruiting at BYU every year. So there’s over four million bucks coming into this program every year, and they use it to recruit on campus. So I’m there.

Matt Mulcock: Yeah.

Taylor: They’re talking about how great this program is. I take a couple courses, I’m like, why not? So I do accounting and then I do the master’s in accounting and then the longer I’m in accounting, the more I’m like, no thank you. So I am like, I’m like grassman at straws. I’m about to graduate with my master’s in accounting and I’m like, I don’t know what the heck I wanna do for my profession.

Matt Mulcock: Yeah. You’re a lost soul at this point. But it ain’t this.

Taylor: So then Northwestern Mutual is on campus and they’re touting their number one internship in the country. I was like, all right, like, let’s try this. So I show up, know, starry eyed and I started shadowing a couple advisors. And for the first time in my life, I was like, I actually like this, you know, this is a good marriage of the numbers and the people and working with individuals and families and really, when I shadowed a couple advisors, what I saw was like, these advisors are basically working with their friends, right? And even though these clients weren’t, quote unquote, their friends when they started, because they had been working so long with these people, it just felt like I was in the room with two friends that were discussing really cool stuff, right? And so from there, I was like, I kinda like this. So I didn’t know this at the time, but Northwestern Mutual will just take anybody that has a pulse for their internship. So I’m there and there was probably a good 15 to 20 of us and we’re doing our training the first day and they’re talking about things and we’re bouncing around. But thankfully I went to a really great spot where the managing director at this particular office had a good head on his shoulders and wasn’t your stereotypical, quote unquote, Northwestern mutual advisor.

Matt Mulcock: Can you fog this mirror? You’re in.

Taylor: And I remember specifically, he asked us three questions when we got into that call. And so the first question he asked was, what is the average return of the SMP 500? Right? And there was a bunch of people that threw out things. I said 10, not because I knew, just because I think I’d heard it. And he was like, yep, that’s it. And I was like, sweet. I just nailed this, right? And then he would…

Matt Mulcock: Nailed it. Star student here, Taylor.

Taylor: And then he’s like, what do you think your job as an advisor, like what type of return do you want to get for your clients? Right? So in my head, I’m sitting there like, well, I know an advisor charges like 1 % and they probably want to add value. So I’m like, we need to get probably like 15%. So I was like, 15, right? He was like, no, right? And then everybody starts throwing out numbers and it’s just like, no, no, no. And he’s like, you know what you want to get for your clients? 10%. And I was like, what? Like, how can the average be 10? And how can that be my job? That does not make sense. And then the next question he asked is he said, what is the average return that an investor gets being invested in the S &P five?

Matt Mulcock: Yep. Yeah.

Taylor: Right. And so as you can imagine, that answer was different than 10. Right. And he said at the time 4%. And I was like, mind blown. I was like, how is that possible? How is it that the average investor can get 4 % when they’re actually getting 10? Right. And so that just really got my wheels turning as a young advisor and as someone that was thinking about this profession of like,

Matt Mulcock: Mm-hmm.

Taylor: It just really was a complete mindset shift because I went in thinking my job as an advisor is to learn about investments, learn about stocks and be so good at my job that I can beat the market and do better. Right. And thankfully I just happened to get lucky and I had a really good mentor that was like, Hey, your job is not to go out here and beat the market. Right. Your job is to allow your clients to actually participate in market returns.

Matt Mulcock: Actually capture those returns. Yeah.

Taylor: Yeah. So I’m sure you’ve had a similar experience at some point in your career, right? Coming up, earning your stripes as an advisor. But I remember distinctly that one conversation as I was getting into this profession. And over the years, as I’ve learned more and more about the industry, that’s honestly one of the reasons I was drawn to dentist advisors. Again, I did not.

Matt Mulcock: Nanny.

Taylor: Think I was gonna be a dental specific financial advisor when people are like, how did you get here? I’m like, let me tell you a story, right? But it was honestly one of the things that drew me to dentists advisors when I left Northwestern Mutual was our approach and our philosophy when it comes to investing.

Matt Mulcock: You’re like, I don’t know. Yeah. Same for me. Yeah. It’s such a good story, Taylor. And I honestly is so fortunate that you had that situation that early on in your career puts you so far ahead from a mindset and approach standpoint. Then I think a lot of advisors who when done, when done the right way, or you stay in the career for long enough, I think most advisors are hopefully come to this realization at some point or another. I’ll call the true advisors, this realization that there’s, you put it, highlighting the massive difference between investment returns and investor returns. And our job in focus is on the investor returns and even just matching those up, as I know we’ll go through much more data, just from the nuts and bolts of it, that is extremely valuable. But it’s interesting because your story also highlights, I think one of the, one of the obstacles we face, because just like you thought when you hear or see on the media or whatever you hear, wherever you heard it, that the average return of the S and P or global diverse fed portfolio, whatever it is, you wouldn’t, when a consumer or just someone out there hears or sees 10%, they immediately, they, they won’t do this. They go through the same process that you did.

As an advisor. So think about the consumer, think about that investor thinking, well, if I’m going to hire you and it’s getting 10 % on the market, you should be getting at least 12. Like they’re thinking the same thing. That is the inherent challenge of this all the time of getting people to realize what your mentor helped you realize really quickly is no, our job is to actually help you just capture those returns over time. And that’s what we’ll obviously talk in more detail today.

Taylor: Yeah. Well, and that’s where like, again, like we’re going to talk and break this down and then just talk about the things that we do, right? At a dentist advisors to try and allow you to achieve those returns. Right? Because as I mentioned, you know, my mentor, he said that number was four and as a, you know, wide eyed brand new advisor, I just took his word for it. Now I’ve tried to do my own research over the years to like come up with a number. I don’t know where he got that 4 % from.

Matt Mulcock: Yeah.

Taylor: I still don’t know to this day, right? But there is a really widely in use study from Dow Bar, right? And if you don’t know who Dow Bar is, join the club, right? I don’t know why you would, right? But this is just an investment research firm and they’ve been putting out this report, an annual report since the 1990s called the quantitative analysis of investor behavior. So as you mentioned, Matt,

Matt Mulcock: Sounded good. Yeah.

Taylor: The difference between investment return and investor return, right? So that’s what this is trying to basically quantify over time. And they’ve been doing this since the 1990s. So we’re talking 35 years now of this report being run annually, right? And the idea they’re trying to produce a report that measures the performance gap between average investors and the market indices. So what you’re actually getting versus what the market’s doing. And the study has consistently found individual investors underperform benchmarks due to timing errors, behavioral biases, and other things. And often, equity fund investors earn around 5 to 6 % versus 9 to 10 % in the market. So this is 35 years of an annual report being done. And 5 to 6 is that general rate of return.

Matt Mulcock: Yeah. Yeah. Yeah, that’s, that makes sense. Maybe four he was quoting is a little aggressive, but a two to three to four ish, maybe even 5 % difference from year to year. think that that tracks for most people. Average. Yep.

Taylor: And that’s the average, right? So you’re going to have some people who are four, who are three, who don’t get a return, right, depending on what they’re doing. And so, you know, this just tells me that there’s some disconnect between market returns and investor returns. Why did this happen? Right? And this has been, I mean, there’s an entire field of study that’s been created due to this phenomenon. Like,

Matt Mulcock: Yeah. Yeah. Yeah.

Taylor: Originally, the prevailing thoughts in financial advising and planning and investing was that investors behave rationally. And that has been turned on its head because that was the widespread belief is that investors would behave rationally. But the longer we have been investing, the more we’ve realized there is a huge gap that we do anything but behave rationally when it comes to investing.

Matt Mulcock: Yeah, this is the fundamental flaw of a lot of economic models and why it’s all theory. Because to your point, a lot of economic theory is under the assumption that the participants in the whatever they’re running, whatever calculation they’re running, whatever N is for that calculation of that, that equation is a rational actor. And to your point, that’s just not how life and certainly not how money works.

Taylor: Well, and there’s also a really powerful story that obviously most advisors have heard of, but that highlights this even more. So I want to just have you briefly give the story of Peter Lynch and the Magellan Fund.

Matt Mulcock: Yeah. Yeah. Peter Lynch, this is, I’m glad I get to tell this story. He’s a fidelity legend and yeah. This is yeah. You told your, your story. I’m not going to go into detail, but, I went, worked at fidelity prior to this for over five years and Peter Lynch is a fidelity legend, considered the greatest investor of all time, really. and he has the track record to prove it. So

Taylor: I know, this is why I wanted to give it to you because this is your alma mater, right?

Matt Mulcock: From 1977 to 1990, he ran the Magellan fund. Again, one of the most famous mutual funds of all time. during that run, he generated, this it’s honestly unbelievable what he was able to do. but he consistently generated on average 29 % on average annual returns during from 1977 to 1990.

Taylor: Stupid. Yeah.

Matt Mulcock: He took the fund from $20 million assets under management to 14 billion during that run. B B 14 billion, just unbelievable. he consistently, mean, clearly consistently beat the S and P during that, during that, run. what is.

Taylor: That’s 20 million to 14 million. Yeah. And I would add there that the S &P 500, again, 1977 to 19, what is the numbers here? Is this 1990? It was a good time in the market. Like the S &P 500 got about a 15 % rate of return annual. So that’s better. But he got 29. So that’s insane, you know?

Matt Mulcock: Yes. Yep. But he doubled it up. Yeah, he’s doubling it. And what it’s, it is insane. what’s even crazier and why we use that. talked about this story all the time and fidelity. It’s again, famous, famous story. And in the halls of fidelity, and it’s also come, you know, now crossed the barrier and it’s, you know, very famous in the advisor space. But, during that same time. The average investor. that was the investment return. Peter Lynch, his fund averaged 29 % per year for that run of from 77 to 9 1990. So that was the investment. The average investor return investor in that fund lost money. The average investor lost money. That to me is like one of the most mind blowing stats and to your point, Taylor. You could even say the S &P 500 had a great run, averaged about 15 % during that run. And the average investor in a fund that doubled that return on average lost money. That just blows my mind.

Taylor: So, and I just want to add, because some people will hear this story, because the story is so famous, there’s people that will like nitpick the, you know, the lost money. Again, that the lost money really does refer to like the opportunity cost, right? If you dive deep into the numbers and look at it, the average investor, the best like actual return data you can get is about a 7 % annual rate of return.

Matt Mulcock: Still just like

Taylor: And then even more concrete, they don’t have it from 77 to 90. But if you look from 81 to 90, it’s like 13.4. So people are like, hey, look, they didn’t lose money. They still did well. But again, if you look from 81 to 90, the S &P 100 got 16.2. The fund got 22%. 13. And from 77 to 90, the best number is, 7.

Matt Mulcock: Okay. And the average investor did 13. Yeah. Wow.

Taylor: So we’re talking, they did two to four times worse. The actual investor invested in the fund. So the fund is returning 29 % over 13 years annually, and the average investor in the fund got seven, right? That’s insane.

Matt Mulcock: Yeah. Seven. That’s… I’ve heard this story so many times and I’m still blown away by it. And, and here’s the thing really quick. If we were going to nitpick a new one, you know, if there’s anyone out there listening being like, well, there’s different types, you know, there’s two different types of return metrics. There’s, there’s dollar weighted and there’s time weighted. So not to get too nerdy, but you know, someone might argue, well, yeah, if they’re, if they’re investing on a regular basis, you know, there’s a difference of saying you put in money at the very beginning of 1977. And then waited to 1990 versus, you know, invested over time, investing over time, chances are your actual ROI would show lower, totally fair, but not by 22 % difference. So that’s not how that works. Like it might be, yeah, there’ll be a meaningful difference, possibly time weighted versus dollar weighted, but not 22%. This all comes down to behavior of the investor.

Taylor: It’s not. So the bottom line of this story is not like, man, I need to go find the next Magellan fund or I need to find the next Peter Lynch. By far and away, that’s not what we’re saying. Because again, at the top, we said, what is an investor’s job or what’s an advisor’s job when it comes to investments? It’s to just try and get you to that S &P 500. So I’m not here to tell you we’re out here searching for the next Peter Lynch. Because the odds of you finding that

Matt Mulcock: Yeah.

Taylor: Are very, very slim. So the moral of this story is not like go find a great fund manager because that’s again, the problem is a lot of people hear that story and they’re like, I can be the next Peter Lynch. I can do that. And a lot of people hear that story and the consumer thinks I need to find that next Peter Lynch. Right? And that’s why in our industry, unfortunately, a lot of times that there is that pervasive feeling of like an advisor’s job is to go out there and find me that next big thing, the next hot stock, the next big fund. What can I do? Right? How can I find that? And that’s not what we want to like highlight with the story. What we want to highlight with the story is that gap of what is happening. Why can’t

Matt Mulcock: Yeah.

Taylor: Why can’t, why doesn’t the average investor actually realize those returns in their portfolios?

Matt Mulcock: Yeah. Yeah. Yeah, that’s, that is the question. And I’m glad you highlighted that because the moral of the story is critical here of what to take away from this. And, and again, what you just to come back to this, when you say a lot of people hear this and they think I got to go find the next, you’re totally right. And again, it’s because like any business, a lot of it is comes down to just marketing and the best story wins, right? Whatever business you’re talking about. And in our space, the story is often we’re the next Peter Lynch. We’ve got the, you know, we’re going to help you beat the market. And so many in this case, dentists want to believe that’s true and want to speed up the process. Let’s talk about really quick, the risk of that. Why is it so important to get the moral of the story, right? And change your behavior based on the actual like key to the story versus the wrong way to look at it, saying I’m going to go find an experience. Why does that matter so much? Because the chances of you, like the driving force behind that is to speed up the process for you. Make wealth attainment, attain wealth at a faster rate at a much larger number, right? Speed up the process. The risk here though, and what is drastically risky here is that you’ll actually do the opposite in most cases. You will actually slow down the process quite a bit. sometimes we’ve got stories on this of, of dramatically so, devastatingly so. So by you trying to speed up the process and taking the wrong point of this, I’m like, I’m to go find the next few inch. You’re actually going to be spinning your wheels a lot longer and slow down the process.

Taylor: Amen.

Matt Mulcock: So let’s talk about Taylor. So the moral of the story is the behavior side. Let’s break this down. Why is it that investors had such a wide gap between the 29 % average rate of return versus 7 %?

Taylor: So there’s been numerous studies done on this specific thing, but for the most part, the most widely sourced or biggest reasons that any study gives is behavior, right? More than anything else. And I want this to lead into our next thing that we’re going to talk about, right? Because it’s all about behavior, right? It’s investor behavior, how we react when there are so many different market conditions. Because that’s the thing. mean, just think about the last 12 months, right? It is really scary when something like the Iran war is happening, right? It is completely understandable to see why people get hesitant or want to sell or want to move to cash or move to gold or change these things. That is the most like rational feeling to have when it comes to scary events that are happening in the market. The market reacts because there are scary things happening. That is the reason why they’re reacting. But when you do react and when you do make knee-jerk reactions, it’s going to affect your portfolio. The behavioral side of this is going to be massive. And so I don’t want you to take my word for it. That’s why I have all these stories and these numbers and this data is like, I like to use actual sources when we’re talking about this stuff. So there is another really famous story done by Vanguard or study done by Vanguard called the advisor alpha, right? Every single financial advisor out there has used this and referenced this. think a lot of times they use the numbers, but they don’t actually implement what is in the study, right? So I think a lot of times you’ll find advisors out there that’ll reference this study as like the value add they bring to clients. And then if you actually look at their

Matt Mulcock: Break it down.

Taylor: They’re processed, they’re not doing what it says in the study, right? But that’s what I wanted to do today is, big shocker here, the Advisor Alpha, what it found is that advisors’ net of fees usually bring about a 3 % better return than the average investor. Well, if you think about that, if you charge 1 % and you’re getting 3 % better and the average investor usually gets five to six and the market usually does nine to 10, the advisor alpha just found the exact same thing that the Dow bar study found. What they found is that an advisor can basically allow you to get market returns because if the average investor is getting five to six and working with an advisor gets you a net return of 3 % better, what does that put it at? Nine to 10 % rates of return, nominally.

Matt Mulcock: Yep. Yeah.

Taylor: So I loved when I was going through this, seeing the parallels like Albar and Vanguard are complete different firms. One is an investment research firm. One is a for-profit business to try and help advisors make money. So you have one that’s independent, you have one that’s biased. They found the same thing, right?

Matt Mulcock: Numbers match up. Yeah. I’ve, I’ve always been irony in the, in the Vanguard one a little bit where, because I think a lot of the do it yourselfers or the, wouldn’t even call them anti advisor people, really just people that are like, I’ll do this on my own. they oftentimes will cite Vanguard and Bogle and I’m a, I’m a Vanguard guy. And I think it’s interesting that Vanguard is the one who has now famously put out the study year after year after year, highlighting the value of an advisor. just, there’s. I’ve always kind of had to chuckle at that.

Taylor: Yeah, it is. And that’s the thing is like, if you ask someone if they are above average, right? 90 % of people think they’re above average, right? No one thinks they’re the average investor. They’re like, well, that’s, that’s for the average person. I’m not the average person. I’m above average, but 50 % of people are actually below average, right? So

Matt Mulcock: Daniel Crosby has talked about this. Yeah. Yeah. Yeah, I’m on average. Yeah. Yeah.

Taylor: There’s a decent chance that you think you’re above average and when it comes to investing, you’re not.

Matt Mulcock: Yep. It, I’m really glad you brought that up, Taylor. I’m okay. Really quick. think that actually is more of an issue for dentists than normal people. really do. And because, and it’s rational, it’s, very normal and understandable because dentists in their career are not average. They’re not, they are an above average career, above average, well above average income. They’re above average in school. Like you have to be above average, high achiever. person to become a dentist and you are rewarded for your ability to have self-control, to control your situation. You are rewarded for precision. are again, high achieving, high income. So all of these things run counter to what it actually takes or the mindset to have around investing. So I actually think this is a bigger, more pervasive problem in dentistry because they could easily make the argument that they’re not average. And then it’s like, well, we’re just trying to get kind of like average returns over a career. And they’re like, well, that’s not who I am. I don’t want to do that. So I’m really glad you brought that up.

Taylor: Yeah, and I have found the more people learn about this, the more danger they are to themselves.

Matt Mulcock: Yes, for sure. Yes. Totally.

Taylor: You know, I, the more people learn, the more they’re like willing to be like, yeah, I’m going to do a diversified portfolio with most, but I’m also going to take this little like extra position here or I’m going to have these 5 % home run dollars. I’m going to, I’m going to venture out here. Whereas I found people who are like, I don’t know any of this stuff, please manage it. You take care of it. They just kind of like put their head down. They are great dentists and they just, and they just let their returns happen. Right. And that person.

Matt Mulcock: Focus on what they can control, Yep.

Taylor: Nine out of 10 times does better than the person who’s like really in the weeds, really involved and is like, yeah, I’m going to, I’m going to do some of these extra things to juice my returns or add that risk and hopefully get better returns. And it’s like, that is the definition of why you don’t perform as well, you know? so it’s funny to see because that’s such a great point about like, again, we say this all the time when we, because we work with Dentist, we create averages. do the Spotify wrapped.

Matt Mulcock: Yep. It’s so true.

Taylor: Episode at the end of each year. And the best way to get a dentist to take action is to tell them that they’re below average. Right? If you’re like, Hey, the average savings rate, the average savers are at 15 % for dentists. they’re like, they’re at 10. They’re like, why do you do five? I need to do 7 % more, you know, like, it’s honestly something that we here at dentists advisors have used to motivate some dentists has been like, Hey, this is where the average dentist is. This is where you’re at. And you

Matt Mulcock: You’re like, this is my tactic. Mm-hmm. Wait, what? Yeah. Yeah. Yeah, we’ve kind of gamified it.

Taylor: Shocked. mean, everyone’s like, yeah, ever. And we say like, every practice is different. But if a dentist sees that they’re below average, it’s like, you know, it’s

Matt Mulcock: Yeah. Yeah. Cause again, they come from an environment of high achieving being ranked against your classmates. Like I get it.

Taylor: You get to where they are, they have been consistently above average their entire life. Right? And so when you hear this, you naturally think, I mean, and this is like, I mean, this happens everywhere. If you’re successful in one area of life, it allows you, it causes you to be overconfident in other areas of life. Right? And it’s just, just because you’re good at one thing does not necessarily mean you’re going to be great at another. Right? And that’s what we call over-confident bias. Right?

Matt Mulcock: Exactly. So true.

Taylor: Like that is a common, very large bias that happens in investing, right? So, but again, this is all like beside the point. In this study, they then break down, they don’t just say, hey, net of fees, you’re gonna get 3 % return. They actually then quantify where these fees are gonna come from, right? And where, not these fees, where these returns are gonna come from. And then they break it down on average.

Matt Mulcock: Totally.

Taylor: So I want to start with kind some of the bottom things and then work our way up to the top. Right? So the first two that say like less than zero basis points. And so again, a basis point is just a name we use for like hundreds of a percent. Right? So a hundred basis points just means 1%. Right? And we do that because again, in investing, we’re not trying to add major returns, we’re trying to add incremental returns. And there are fund managers out there that if they can add 10 basis points, 15 basis points, or 0.1, 0.15, they will get bonus millions of dollars. So when we’re talking even 10 basis points, that is a needle mover in investing. So the first two that they discuss in a study, they say zero basis points, but it has a large asterisk.

Matt Mulcock: Yeah, yep.

Taylor: And it just says, this is so dependent on the investor that it is impossible to quantify. So the first one is total return versus income investing. I don’t want to spend too much time on this, but specifically, this is usually a strategy that’s used when you are in the distribution phase of your investment life cycle. And it’s basically, do you want to live off dividends and interests, or do you want to live off of selling stocks?

Matt Mulcock: Yeah.

Taylor: And there’s just this feeling people don’t like to sell positions. And so more often than not, you’ll see people in retirement go towards dividend generating stocks or, you interest or how can they get kicked off? Basically income without actually selling stocks. And if you look at that in a lot of instances, that’s worse off for you because if you were just in stocks that were going to perform better, but you slowly and strategically sold them off.

Matt Mulcock: Income. Yeah.

Taylor: You can do better, right? And Vanguard in this study just threw up their hands and say, we know this is important, but we’re not even gonna quantify a number because it’s completely dependent on the situation of the person. But just know, like if you’re doing this yourself, and you’re like, I wanna have a bunch of dividend investing or a bunch of dividend generating stocks in retirement, that could be bad for you, or it could be good, right? But how you choose to take income

Matt Mulcock: It’s impossible. Yep. Yep.

Taylor: Can be huge, make massive differences in return. Next one is what we would call suitable asset allocation. And again, this one is just completely dependent on the person when you work with them. I mean, I’m sure you can think of dozens of stories of when you came on, worked with a client and their asset allocation was just not where it should have been. I have seen, I have actually come across people who thought their money was invested.

Matt Mulcock: A mess. Yep.

Taylor: And when you looked into their 401k or looked into their IRA, it was still sitting in cash. Right? So that alone, I mean, how do you quantify that? I mean, that is massive amounts of difference long-term.

Matt Mulcock: Yeah. Well, and I think this is an important one to say on for a minute here, Taylor, because I think a misconception, a disservice that we’ve made sometimes when we talk about this kind of stuff over the years is letting people assume that our philosophy is set it and forget it S and P 500. That’s not what we believe. That from a kind of a good, better, best lens, right? I’ve heard you say this before. I’ve shared this before like good, better, best. So if we talk about sitting in the S and pipe S and P 500 compared to day trading S and P 500 all day long, like, yes, but we don’t, we don’t think that’s the optimal strategy allocation diversification strategy to again, from a technical and tactical optimization, there are far, there are definitely more things to be doing than just like set it and forget it on the S and P. So we’re not, that’s a story for an hour discussion for another day, but I just think that’s a really critical one to highlight here that we, we believe in. We believe in a much more systematic approach and more technical approach than just an index it and then forget it, you know, strategy.

Taylor: 100%. And I think it’s such a great point because when you are trying to talk to a consult and you’ve got 30 minutes, 45 minutes to talk to somebody and like get your point across, you can’t go into intricacies of what we actually do. And a lot of times we’re like, yeah, we believe in low cost index fund investing. And so the person hears, oh, they just buy the S &P 500. No, it is way more than that. It 100 % is, right?

Matt Mulcock: Yeah, I can do that. I’ll do that at Vanguard. Yeah. Yeah.

Taylor: So that’s such a great point. And just to give you like other real world examples, I have found sometimes you bring on a client and you go through the investment presentation and they’ve never gotten into investing before and they’re a little hesitant to dip their toes in and you’re trying to get them to be as aggressive as possible. And they may start out with like an 80-20, right? And that’s after they wanted to do like a 60-40, right? But you’re like, you know, I put my foot down with clients and I say, Hey, you’re young, you got time. I’m not gonna let you do anything less than 80-20, right? And they’re even like hesitant there, right? But then with what I’ve done with clients over the years is I’ve consistently every single year brought up their asset allocation and showed them and say like, hey, you made this last year. It was awesome. Had you been in 90-10, it would have been this. Had you been in 100 % stock, and with all my clients that have started less, I have each year brought it up and saying, I’d like to push you to 100 % stock.

Matt Mulcock: Turn that dial up. Yeah. Yeah.

Taylor: I’d like you to get there, right? And the hope is that by moving and training them and teaching them that they’re going to get to that point where they are more aggressive. Because again, if we compare this to just, well, you can just buy a target date fund and they will take care of it all. Well, it’s like, or you hear that old term like your age in bonds. my gosh.

Matt Mulcock: Don’t. Don’t, Taylor. Don’t. It’s the worst.

Taylor: Like your age in bonds could not be more detrimental to your long-term returns, right? Because again, when you’re, most people are not investing aggressively until they’re in their 30s. So if you’re starting with a 37 or 70, 30 portfolio, man, you are going to miss out on literally potentially millions of dollars in that work. Right? So this is one big one. Like again,

Matt Mulcock: Mm-hmm. Yep. Yep, could be. Over the course of your career, for sure.

Taylor: Vanguard just threw up their hands and said, it’s important, but we can’t quantify this because finding the right suitable asset allocation could be worth 10 points. mean, we could be talking a thousand basis points when it comes to this.

Matt Mulcock: Yeah. Yep. Yeah. They call it value is deemed significant, but too unique to each investor to quantify. That’s how they exactly put it.

Taylor: Yeah. So those are, those are two I wanted to mention again, total return in versus income investing and then suitable asset allocation. Right? So those are things that obviously when we’re working with clients, we’re going to make sure that you have the right asset allocation based on where you’re at in your career. Right. And ideally we’re going to bias you to be even more aggressive than you may feel comfortable with. Right. And we hope with education and training that you will get comfortable with it. Right. So those are two big ones, but now we can actually

Matt Mulcock: Yep. Love it.

Taylor: dip into actual quantifiable returns that we see. So the next one is rebalancing. rebalancing, again, a lot of times people just think, well, if I have an 80-20 portfolio, depending on what happens in the market, I actually was reading a blog about this and there was this guy who was a quote unquote DIYer and they were like, Well, if you actually rebalance your worse off, because if you started with an 80-20 over time, you’re actually going to morph to that 90-10, 100 % stock, which I would agree. If you are going to be 80-20 and you’re never going to rebalance, you could probably actually do better by not rebalancing because you’ll be skewed to a higher thing. But when we talk about rebalancing at dentist’s advisors, we’re not just talking about staying the course on an 80-20. We’re also talking about rebalancing

Matt Mulcock: Yeah.

Taylor: within style and sector and global diversification, right? Because the world changes over a 30, 40 year career and so should your portfolio.

Matt Mulcock: Yeah, just to give some actual data to this, I don’t know the exact years, but when I started, my, when I started at Dentist advisors going on now 10 years, which is wild. I I’m over or yeah, over eight years now. but when I started, we used to talk about global diversification and the Aller or the, the distribution of wealth in public companies in the, the world. And at the time the U S was like, 50 % of the global market, something in that range. It’s now 65 % just because of the growth of the US market. that.

Taylor: And it almost, almost got up to like 70 there for a second and it’s come back down, right?

Matt Mulcock: Close exactly. Yeah. Yep. So just that, that particular case, just that one piece of data of rebalancing to your point, Taylor, over a decade, how the global market can change and how you need to be able to have a system in place to rebalance for that, for that. that’s just one of countless different things that you should be accounting for when it comes to rebalancing.

Taylor: And rebalancing is really easy to talk about and I think understand, but in practice, you see a lot of people not do this because it’s really, really hard because rebalancing is what did well, I’m going to sell out of that, right? What did poorly? I’m going to go buy more of that. Like that hurts. That’s not easy to do. Right. And so when you’re doing it yourself, it’s easy to say, yeah, I’ll rebalance. Right.

Matt Mulcock: Buy that, yeah.

Taylor: And it’s another thing to actually go in there and make some trades or change your positions. Or when you have new dollars coming in, buy the thing that’s low instead of trying to buy and ride the wave. So rebalancing is a key portion. This adds on average at least 35 basis points, so 0.35%. Next one is asset location. Right? So this one’s a little confusing, but this is just kind of, again, what we talked about size, style, where are we putting the positions that we’re in. And then it’s really like tax loss harvesting is the biggest portion of this, of like, you know, we want to have a specific globally diversified portfolio, but there are going to be opportunities throughout the course of your career where you can save money on taxes, right? By locking in losses but then repositioning your stocks in a similar type fund. And that’s something that you have to be pretty active about and paying attention. So that whole passive investing thing that you talked about at the beginning, what we do for clients is anything but passive. Every single day we look at cash in the account, what’s there, how do we rebalance this efficiently, is there tax loss harvesting? It doesn’t necessarily mean we’re trading every day. But every single day, Rabih Dimachki, cash GPT himself, is in your accounts looking at things. So that one adds about 40 basis points, her 0.4 % rate of return.

Matt Mulcock: Yeah. Really quick, you said, I was making sure I have this right. You said asset location. Were you referring to cost-effective implementation?

Taylor: So yeah, go ahead. The next one is cost-effective implement.

Matt Mulcock: Okay, got it. Sorry. I was looking at the wrong one there. Perfect.

Taylor: Oh, I flopped these. You’re right. So I flipped these. I flipped these myself. So that’s my bad. The 40 basis points is for the cost-effective implementation. asset location is actually 75 basis points, 0.75 % rate of return.

Matt Mulcock: I think you flipped him. Got it. And then asset location. Yep. Yeah. So, so cost-effective implementation you’re referring to a lot of times is talking about, tax house harvesting that could kind of fit in the category we’re balancing as well. This is also talking about picking the right funds, ETFs or mutual funds or otherwise, and controlling the costs. A lot of times how you implement those things add 40 basis points asset location being the types of investments you have in the different types of accounts, whether that be IRA, Roth, brokerage, and being really, thoughtful and strategic about those types of account types and investment types and matching those up properly.

Taylor: Well, and this is where cost effective implementation, like there’s several things that it discusses. It talks about, like you mentioned, low cost funds, minimizing trading costs, tax efficiency, which accounts we save into, right? Putting money into the IRA versus the Roth versus the brokerage account, right? And then fee stacking, like this one kind of hits a lot of things. Like for example, you know, a really common thing, we just talked about this yesterday when we were talking 401ks.

Matt Mulcock: Yep. Yep.

Taylor: But we talked and brought up not to call out any firms, but there’s a really common firm called American Funds. And they’re not good or bad, but they do have very high fund fees. So to give you an idea, usually these are anywhere from one to one and a half to even 2 % on fees to hold. And to just give you guys a sense of is that good or bad, there are fund fees out there that are basically zero, right? The dimensional funds that we use are like 0.1, 0.15, right? So the one, one and a half, the reason why they do this is for some advisors who are not fiduciary fee only advisors, this is how they get compensated, right? So they get compensated through those high fund fees. They get a kickback from those fees. But… A lot of times you are actually paying your advisor a fee and then they’re also getting the kickback. Right. And so they’re stacking fees without you knowing it. So you’re paying the 1 % for your advisor, then you’re paying one and a half, which is then giving them a kickback. Right. So you have to be careful, like how you are stacking these fees. Like I said this yesterday, Matt, and you kind of chuckled like

Matt Mulcock: Yep.

Taylor: I always tell my clients when they have a 401k plan, I don’t want to move it. I hate moving it. It’s the worst. It’s a pain in the butt, but I’ll do it if it makes sense for you. One of the reasons why I do move them is when I see an American funds 401k, I’m like, gosh, you’re probably paying a lot in fees. That, and then smart rebalancing. We talked about the importance of rebalancing, but…

Matt Mulcock: Yeah.

Taylor: There’s a smart way to do it, tax-efficient way to do it. Here at Dentist Advisors, we do what’s called daily cash rebalancing. So what is that?

Matt Mulcock: You me? I didn’t know if that was rhetorical.

Taylor: Yes. I want our clients to understand. No, no, no. So I want our clients to understand what we’re doing, right? So we do something called daily cash rebalancing. So what is that?

Matt Mulcock: Yeah. Yeah. So, this gets often confused because to your point, we’re not, we’re not day trading an account, but that often again, but we’re also not sitting here passively like, just sitting back and letting, letting things happen every single day. It threw a combination of, of technology that we have at our disposal and then Rabih and our investment team every single day does basically a scrub of the accounts. And a daily rebalance of tracking cash that’s coming into the account, because a lot of, good chunk of our clients are, are regular savers on a monthly basis. So we’re tracking all the cash that’s coming into the account and then basically saying, where does this money need to go based on the allocation and what we call kind of bands we’ve set up of like, you know, which different positions should this money be going into? So daily rebalancing is something where literally doing on a daily basis, cash coming in. We then allocate it properly to different areas based on the allocation and the movements of the market.

Taylor: And this is so helpful because again, what we’re trying to do is minimize trading costs, right? We don’t want to have to actually trade your positions, right, to rebalance. Ideally, we want to rebalance with the new cash, as Matt described, that’s coming in the door. And that’s either coming from new savings or it’s coming from dividends that are kicked off or it’s coming from interest. When you have a multimillion dollar brokerage account, Guess what? Even if you’re not saving money into it, there’s quite a bit of dividends that are coming in. More often than not, we can get by rebalancing your portfolio without ever having to trade and incur tax costs or trading costs inside of the portfolio.

Matt Mulcock: Yep. Yeah. To that point, I’ve talked to Rabih or this many times he’ll even look ahead or he’ll look at the account when he sees a rebalance requirement and he’ll like, but $20,000 is coming in next week. So I’m going to hold it because he’ll get alerted. His team will get alerted. And to that point, Taylor, $20,000 or 25 or 10, whatever. And he’ll look and say, Oh, well, I’m not going to sell this and rebalance based on what the, you know, the technology is telling me. Cause I see this money coming. So that again, combination of technology and human to us is critical when it comes to the nuances of something like balancing.

Taylor: So again, these several things we’re talking 0.4, 0.35, 0.75%. I mean, we’re already almost a full 1.5 % just in those logistical things. The next one that comes up is retirement spending strategy or withdrawal strategy. So this is a huge one, not necessarily in your asset accumulation stage, but 100 % in…

Matt Mulcock: Yeah.

Taylor: Retirement, when, where, how much you take out of your accounts can have major, major implications over the course of your return and long-term health financially. And so there, you know, it’s almost like a different type of planning that happens, but it is very, very involved in a lot of numbers being crunched to figure out how should we strategically do this? Are there opportunities to do

Matt Mulcock: Totally. Yeah.

Taylor: Roth conversion strategies, right? Can we fill up the tax brackets and pay some money and avoid some RMDs down the road? So I don’t want to get into this because we’re already like almost past time, but just know there’s a lot going into it. And because of that, there’s 110 basis points on average that get added just from that. So we’re talking over a full percent of return just from withdrawal strategy.

Matt Mulcock: Yeah. It’s just huge. Yeah. That’s kind of the counterweight to the asset location part portion of this, which is what we, lot of the world we live in with our accumulating clients, but that eventually if done correctly, this is why we’re so focused on trying to get our clients to diversify the different account types they have to be able to maximize a withdrawal strategy down the road. Like you said, whether that be

Taylor: Subscribe.

Matt Mulcock: off conversions or the, that’d you’ve built up a bunch of, brokerage assets so that, you know, that gives you some flexibility. You’ve got pre-tax accounts. Like our goal is to try to get you to a place of having these different buckets to make a withdrawal strategy, maximumly effective and give you that optionality down the road. And then the, the last one here too, I think this is the big one that kind of brings together the stories that you’ve, you’ve told.

Taylor: Yeah, which is again, the behavioral coaching, which we’ve been going to, right? So the study here says 150 basis points, which again is 1.5 % rate of return. But there should be a massive asterisk there because it just depends. And it’s not like every single year you’re gonna average 1.5 % better. More often than not, it is… you know, an advisor’s fees. One another thing I remember from that initial conversation that I had with that managing director was an advisor can earn their fees for their entire career in one move, right? If they can save someone from making one knee-jerk reaction, one bad decision, that can quote unquote pay their fees for the rest of the career.

Matt Mulcock: Yeah, totally agree with that. I learned that at Fidelity as well, and even more so at Dentist advisors, the asymmetry of value is also again, difficult to quote unquote sell to someone, but, but it is so true and so critical. We often say that an advisor when it comes to investing is often big mistake insurance. It’s going to stand between you and maybe those three to five to seven mistakes you that you will inevitably want, or you will inevitably make, cause we’re all human over the course of your career. And that all fight falls in line with a general kind of law. I’ll call it a law. I’m just going to say it. I don’t know if it’s an actual law, but an actual like kind of this law progress there, which is progress is super slow and destruction is swift. Like that kind of law of the asymmetry of progress is what we talk about all the time, which is we’re just here to one of the biggest values is trying to save you from making a catastrophic mistake. But nobody ever wants to believe that they’re going to be that person that does that. So that’s a really good point you make. Always. Yep.

Taylor: It’s always someone else that’s gonna do it, right? So you see this, but in article, just to give you guys some ideas of things, it mentions lack of a clear plan, right? Getting people just having a plan in place can be massive, right? You see this all the time. You have clients with a ton of money sitting in their cash accounts. They’ve never invested before. They have a rental property over here. They have a permanent life insurance. They have a simple IRA. There’s just no plan, right? You come in and you help organize them. You get them moving in the right direction and you get all their investments rowing.

Matt Mulcock: Random acts of finance, yep.

Taylor: In the same direction, so to speak. So that’s a huge one. Overtrading, we discussed this. A lot of times we are trying to avoid trading as much as possible. But if you’re doing it yourself, very, very common pitfall of overtrading, not understanding the fees, not understanding the tax implications. Trying to time the market, huge one. I heard some article, there’s a recession around the corner, I’m not gonna put money in.

Matt Mulcock: Huge.

Taylor: Meanwhile, I miss out on a ton of return or I’m going to wait for the next big dip and then I’m going to put the money in, you name it, right? Market timing, performance chasing, gosh, crypto, NFTs, David’s so good, Nvidia, I’m going to jump in that. Well, they did good. You heard about it. So you probably missed the upswing, right? And so you chase the performance and then what happens, it goes down and you get scared. And then you actually lost money in the asset that had a hundred and

Matt Mulcock: The video.

Taylor: 20 % rate of return, right? Panic selling during downturns, trying to stick to your plan during long term, or staying invested during the downturns. All of these things are very common pitfalls that we see all the time, right? And I have countless stories that I could bring up, which probably a whole nother podcast that we could talk specifically on behavioral coaching, but just for the sake of you guys, you know not having to listen to us talk for two hours. Behavioral coaching is huge, right? And I don’t understand how they… I mean, if you go and read the white paper that they put, it’s like a 30-page research paper, right? But they quantified it at about 150 basis points or 1.5 % difference long-term in your portfolio.

Matt Mulcock: Let’s lock in for another hour here, too. Yeah. Yeah. Yeah. The last thing I’ll say here too, and then I want to kick it to you for final words. but the last thing I’ll say is we go through this, like we’re talking a lot of the technicals around this study and like both Dow bar and Vanguard. But I also think the, the emotional aspects or value of this as well, of having that accountability partner, having someone in your corner, having someone that you can kind of just have checks and balances with like the stress relief. And as you were highlighting, you know, the countless stories we’ve, we’ve had of people who have all these plate things in different places and just getting their, getting organized and building momentum, the ripple effect that can have in other aspects of your life. You know, to me, the most, the three most important areas of life are your, your health, your relationships and your money. And I think it’s really easy to have them kind of on this teeter totter when one’s not doing well, it impacts the others. And so I just wanted to highlight that as well of just the, the emotional, the mental benefits that this can bring of. You know, having that person in your corner and get you organized and again, build an momentum on top of all the technicals we highlighted here.

Taylor: Yeah. Well, and this is why, like, I really want, if I could, like, get on a pedestal and preach this to people, I want them to understand this, right? Again, number one, my job is not to beat the market. I don’t want to, right? But my job is to really save you from yourself, right? The market does its job. The market gets great rates of return. But on average, the average investor is only getting 5 to 6 % of that, right? They are missing out on a lot of things because there’s a lot of things to do. There’s a lot of actual jobs to be done when it comes to investing. And if you are a busy dentist that has, you know, that’s running a dental practice, trying to be a spouse, a neighbor, a friend, a sibling, a parent, right? There are so many things pulling your time and attention, right? And to do all the other jobs that you have to do when it comes to investing, can you do it? 100%.

Matt Mulcock: Apparent, yeah.

Taylor: You totally can. But what’s the risk to you of not actually getting it done? Are you falling for these pitfalls? Are you actually being closer to the average investor than you think? Right? I mean, if you are going to miss out on 3 % returns over the course of your career, it could be tens of millions of dollars. It can be massive. Right? And so I get asked all the time, like, Hey, now that you’re an advisor,

Matt Mulcock: Catastrophic.

Taylor: If you would ever do this, would you do this all by yourself? Could you just manage your own stuff? it’s like, I never would. And people, I think, think that I do it myself. It’s like, no, I don’t. is doing my investing. Rabih is the one that’s, I am not paying attention to any of this. I’m having Rabih do it. He’s outsourcing it. He’s sending me the same stuff he sends clients when there is rebalancing or new money or new cash should be done. I get that.

Matt Mulcock: Rabih Dimachki baby. Yeah, we eat our own cooking.

Taylor: I schedule a once a year meeting with Jake Elm and we review spending together and then we actually go through our categories like I do with my clients and I talk about my spending and we go through the buckets and we compare data. Every time I have a major purchase, I schedule a meeting, Matt will attest with Matt, Will and Jake, and I discuss the car and the minivan and the house purchase and what I’m doing. I wholeheartedly believe in this stuff.

Matt Mulcock: Yeah. Yeah.

Taylor: I have seen it time and time again, add value. And I think you’re taking a big risk trying to do it all yourself. Now, I will say I have 140 clients now. And there are a bunch of my clients that I meet with on a regular basis that I think, man, they really are good at this. And they probably could do it themselves. But they have told me themselves, these clients specifically, when I’m like, gosh, you really are like, dialed in, you’ve got this locked in, you’re aware of this stuff. And they’re like, I just like having that safety net, as you described, Matt, I like having someone to talk to, someone to bounce the ideas off of, and someone else outside of myself that’s preventing me from potentially making that mistake. And I’m like, you know what, these people have such a good head on their shoulders. They probably are the ones that are better than average. But they’ve taken the calculated risk of like, and I’ll pay the quote unquote, 1 % to guarantee I’m going to get a 9, 10 % rate of return in the market. That is worth it for me because I don’t want the downside of actually being the average investor that’s getting the five to six.

Matt Mulcock: Yeah. Yeah. Totally. Yeah, that’s great, Taylor. This is awesome. So many great stories and insights. we hope it’s helpful. And if you’re out there listening, thinking, know, if you’ve been listening for a week, a month, we talked to a lot of people have been listening for years and you’re thinking, man, now’s the time. I just, I at least want to have a conversation about this and see how we can get help or just ask some questions in a really low pressure situation. What I always tell people is at the very least you’re going to learn something and hopefully get some value out of a complimentary conversation. You can go to denisadvisors.com click on the book free consultation button. We would be so grateful and really just honored to talk to you, hear your story, um, and, to point you in the right direction. Hopefully we can add some value. And then of course, coming up, uh, Dentist money summit midway, Utah, June 11th through the 13th. We’ve alluded to him before, uh, on this show and in the past and you. No one loved him from two cents, but I’m highlighting this as my selling point, Taylor cash GPT himself, Rabih Dimachki He’s on the big stage this year, which is going to be awesome. He’s going to be talking investing with intention. So talking a lot about what we’re talking about today. We’ve got leadership experts coming in, Dr. Daniel Crosby coming back. so it’s going to be amazing.

So we would love to see you there June 11th through the 13th in Midway, Utah. Check it out. dentistmoneysummit.com for now. Everyone. Thank you so much for listening. Taylor. Thanks for being here and sharing your wisdom until next time. Take care. Bye bye.

Keywords: financial advising, investment management, investor behavior, market returns, behavioral coaching, portfolio rebalancing, asset allocation, advisor value, investor returns, market myths

Advisors, Investing