Special Guest Expert - Andrew Parrillo: Video automatically transcribed by Sonix

Special Guest Expert - Andrew Parrillo: this mp4 video file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Brian Kelly:
So here's the big question. How are entrepreneurs like us who have been hustling and struggling to make it to success, who seem to make it one step forward only to fall two steps back? Who are dedicated? And driven. How do we finally break through and win? That is the question. And this podcast. Will give you the answers. My name is Brian Kelly. This is the mind body. Hello everyone and welcome, welcome, welcome to the Mind Body Business show. Oh my goodness gracious. Oh me, oh my. Sometimes I like to say we have a fantastic show lined up for you tonight. Because. Not because of me. Oh no no no no because of the one, the only, the amazing Andrew Perillo. He is here. He is waiting. He is in the green room. Just saying. Scratching at the monitor saying, Brian, I'm ready. Let me in already. Let's go. Let's do this in just a moment Andrew I'll bring you on and oh my goodness I cannot wait to share your genius, your beautiful beautiful. Everything mean everything. You have a great heart, you love to serve, and you are going strong and helping and serving others and can't wait to share what it is. Andrew does for his clients how he serves others and helps their lives improve. And that's what I love. Why I love what I do, what I get to do, which is host this very show. The Mind Body Business Show is a show that is designed to bring on highly successful entrepreneurs. Not for me, but for you. I elicit their strategies, their tips, their secrets that have brought them to their current level of success so that you can then take notes and then take action on those notes and also become successful, more successful than you are today, because that is how it works. One step at a time, stacking one pebble after another. And if you follow the show for any length of time, I know without a shadow of a doubt that will happen for you, as it has for me. Yes, I've been on every show, so I'm I listen to every guest, and I have learned so much and gotten so much value from each and every one of them.

Brian Kelly:
And I know that the same will be true with Andrew. I kid you not, I guarantee it without even without even talking to him yet on this show, I guarantee it. You will find something of value here tonight that will help you in your business and in your life. And so the Mind Body Business Show is a show that I put together because I, I began concentrating and studying, concentrating on and studying successful people only for a period of, I'd say a decade. I mean, it wasn't like I'm only concentrating on those people for ten years solid. But when I would study anything or look into anyone, I would always look toward the successful people. What is it about them that made them more successful than, say, me? Like, did they run and jump and land in their pants with both feet at the same time? Both legs? Because I do it one leg at a time. What is it? And what I found in this journey is that three pillars kept bubbling up to the top. Those three pillars are part of the very name of this show. One was mind, and mind really stands for mindset. And to a person, these individuals, and I'm talking about actual mentors of mine that I literally worked with, shared the stage with, became lead trainers of. And I'm talking about authors of books, some of whom I've met personally, others I've never met, others who are no longer with us. I think you get the idea. And these people, all three of these pillars kept bubbling up to the top mind was they had a very positive, powerful and most importantly, a very flexible mindset. And then when it came to body, that literally meant they all took care of themselves physically and nutritionally. And then business. Business was a multi multifaceted and glorious topic and subject, because what I found is that these individuals had mastered the necessary skill sets to bring their business to a point of success, and then to be able to scale it and grow it and become even more successful. Skill sets like marketing, sales, team building, systematizing, leadership. I could go on for a while and being an astute listener and viewer, I hope you're viewing.

Brian Kelly:
I hope you're watching this live on the mind body business show.com. That's where you can register to see and get notifications when we go live with a link to take you right to us. Love it! And for those of you that are listening, take notes as well and really take heed of this advice. The great thing is you do not have to master every single skill I just mentioned. Not even those. There are many more. The good news is if you just concentrate on one focused on one one of those skill sets, then the rest can fall into place really nicely. By the way of leverage. And what is that one skill set? It is the skill set of leadership. When you have mastered, or even if you're on the process of mastering the skill set of leadership, you can then begin assembling other individuals into your team that have already mastered those other skill sets, thereby alleviating you from having to spend that enormous amount of time. Mastering it takes a long time just to master one. So that is what you want to do is leverage yourself as much as possible, leverage others, leverage other services. And that's how you can grow business much, much faster. Can't wait to hear if Andrew has a opinion on that, because Andrew is far more experienced than I am. And that's why I love having folks like him on, because he can impart additional and maybe even contrary wisdom. And that's all good, because we all just want what we all want, which are results. That's all that matters. It doesn't matter how we get there, as long as it's with integrity. We don't care. We want the results at the end of the day. And speaking of people that get results and these very successful people, just like Andrew, I found another incredible quality and that is to a person. They were also very avid readers of books. Yes. And with that, I'd like to segway real quickly. I know, Andrew, we're ready. We're coming. Well, real quickly to a small segment I affectionately call bookmarks.

Announcer:
Bookmarks. Born to read. Bookmarks. Ready. Steady. Read. Bookmarks. Brought to you by Reach your Peak Library.com.

Brian Kelly:
Yes, Richard Peak Library.com you see it there on the side, especially those of you watching live. Now, here's a quick, quick, quick word of advice for those of you, even if you're listening, if if you hear a resource like a website or you learn about a book that maybe Andrew suggests many suggest books rather than succumbing to that itch to go and check it out while the show is going, while you're listening to it, whether it's recorded or not. Instead, I implore upon you to write it down, take notes, and then visit that resource after the show is over. Once you're done watching or listening, why do I say that? After years of speaking from the stage, especially in the very beginning stages of that, I recall vividly standing on stage, getting to what I know to be the juicy part, the life changing part. And sometimes I would notice an individual get up from their seat and start walking out of the room, gazing at their phone, because they got that all important text message, or even very quietly talking on the phone because they got that all important phone call. They were distracted, in other words. So for you, I would implore upon you to instead stay focused and listen to Andrew intently throughout the show. Because I would hate for you. Absolutely hate for you to miss that one golden nugget that could literally change your life forever, that Andrew has in store for you coming up very soon. I don't know what it is. You don't know what it is, but I'll guarantee you almost every time there is at least one of those. And I'd hate for you to miss that. Sound good? So stay with us. As I like to say, the magic happens in the room. Speaking of the room, we have Richard Peak Library right here next to me, and that is a website that I had built by my team with you in mind. And I know that may sound a little cheesy. It's absolutely true. It is not here for the purpose of making money. What it is is my own personal library. I myself did not start reading until the age of 47, about 12 years ago.

Brian Kelly:
I'll pause and let everybody do the math. All right, I think you got it. And I found that it was unbelievably powerful, and it gave me such great results to read the right books, read the books that were going to take me and my business and my personal life to the next level. And so I'm scrolling right now, as you can see on the side, these are in here in no rhyme, no reason. They are not alphabetical. They're not by there's just no rhyme or reason. It's just as I finished reading them I said, put this one on the site next please. And all these buttons, they go to Amazon, get them wherever you want to get them. Again, this is not for making money. It's for presenting to you a way to grab a book that just jumps off the page. Grab the first one. Don't go through every single one of these. You'll waste all of your time. Go through them. The first one that jumps off the page. Go get it wherever you get your books. You can get it right here if you want, and read it and then put it into action. That is my soapbox moment for you. Reach your peak Library.com. Write that down. Visit it after the show is over. Because right now you want to put your focus 100% on the screen because the one and only Andrew Perillo is coming on right now.

Announcer:
It's time for the guest expert. Spotlight. Savvy. Skillful. Professional. Adept. Trained. Big league. Qualified.

Brian Kelly:
And there he is, ladies and gentlemen. It is the one. It is the only, Andrew Perillo. Welcome to the show, Andrew. How are you doing, my friend?

Andrew Parrillo:
I'm doing fine, Brian. First of all, thank you very much for giving me this opportunity to reach out to a lot of folks I do not know and some I hope I do know on this on this broadcast. So thank you.

Brian Kelly:
Yeah. And I venture to guess there will be many that you don't know that you will come to know, and they will be grateful for that. And I'm sure you will be as well, because, you know, we are meant to be on this earth and serve each other, not just one serve the other, but let's do what we can to help each other out along the way and know that's how you're wired, too. I saw you nodding right there, Andrew. That tells me a lot about you. Just by that one little nod. That's a that's a wonderful man right there. Hey, do you mind, Andrew, if I give you the respect you deserve and give you a, like, a formal introduction?

Andrew Parrillo:
Of course not.

Brian Kelly:
It's very quick, thanks to you. And you're short right up. Here we go. Andrew Perillo. He is father of three accomplished sons. Right then and there, ladies and gentlemen, that's massive success. It ain't easy being a parent. He is devoted to delivering value, well being and inspiration to others. He believes that health is wealth and that physical strength is like money in the bank. His values are fairness, humility, transparency, respect, passion and clarity. Short, sweet and to the point. Ladies and gentlemen, Mr. Andrew Perillo. Yes.

Andrew Parrillo:
I hope I can live up to all that. I mean, first of all, I like the title of your of your show here, mind, body business. Because you're right, health is wealth. It is the ultimate wealth. You don't have that. It doesn't make any difference how much money you have. And so I'm grateful for health and I work for it. And I say, and strength is like money in the bank. And, you know, I've been physically active for my whole life, um, actually have gotten into a dozen years ago or so, got into a strength training program, strength training, barbells training, actually. And it's amazingly energizing and beneficial and it helps us to be stronger, which gives us all kinds of benefits that are obvious. And I won't have to recount them here to folks. But yeah, so to me, health is wealth. Uh, the book. And I'm here to really talk about a book that I wrote this year and let me start out and the title of the book is Beat the Wealth Management Hustle, and we'll talk about what that means. But it's it's designed to benefit every investor from people with $10 to people with 100 million or more. Okay. And that's really the point of it. And I'll go through some of these points as we as we proceed here. But that's, that's the title of the book. And, and what inspired me to write the book is I had my own registered investment advisory firm for 25 years until I decided I would try to retire four years ago, and I found retirement to be super boring. And I had to do something. And so I kind of thought about what I wanted to do, and I kind of like what Ben Franklin said is we don't we don't grow. I'd say we we don't grow old. Let's see, what do we say? We don't? We grow. We grow old. We don't grow old by. We grow old and we stop playing, okay? We don't grow too old to stop playing. We grow old and we stop playing. So I decided to keep playing. And so I've written a book.

Andrew Parrillo:
And my inspiration for the book was I was at a holiday party at a, at a, at a Rotary Club meeting last December, and I didn't know anybody there. I was in New Hampshire at a friend of mine's house and, and I said, well, you know, okay, I have three sons and three grandchildren. And I just retired from the investment business. And immediately people, strangers started asking me what they should do. Now, this was late December of last year, and I recall that last year, the stock market was down about 20%, a little less, and the bond market was also down similarly. So most people actually lost a fair amount of money or decline in their value of their portfolios last year. And so what should I do? And I said, well, do you have an advisor? Yes. I said, well, you know, I don't, I don't I'm not licensed to give advice, which I was not at the time. And so I suggest you ask your advisor. And then they started saying, well, what's the fed going to do next week at its policy meeting? And I thought, well, they're going to do what they've been telling us they're going to do. And that is they're going to probably raise interest rates again. And and they did. But I said whatever they do, it's unlikely that it would make a change. It would it would motivate you to make a change in your portfolio, which it did not. And and subsequently the market began to recover. And but it occurred to me that they should have asked their advisors, whom they're paying a lot of money to for perspective, and they did not. And so then I started to ask some friends of mine who had. Who had advisors and they had varying amounts of money under management with these advisors and said, do you know how much you're paying your advisor? She I don't know. I said, well, perhaps you should ask them, but that you say, well, not only how much do I pay you, but how are you adding value to my account after your fees? What's your structural advantage? What's your competitive advantage? And so that's one question.

Andrew Parrillo:
And I have a series of questions that that follow on that. And I ask them well do you get performance reports from your advisor. No I don't remember that. Do you have an investment policy statement? I'm not so sure. And so there were a series of very obvious questions that people just didn't ask. And I came away from that experience of talking to those friends with the perspective that people just need more education, and they need to be educated on the questions to ask. And, you know, you don't ask, you don't get okay. So if you ask the questions, then you're going to learn a lot. And so that's, that's, that's that's really the basis for my that was my aha moment. That was my epiphany to write the book. And so I thought you know we'll have to be educated okay. So where do we start with that okay. So I can say who am I okay. And what does it mean to you. Well, I have a whole chapter devoted to that subject in the book, but and, and I think it's important for us to give perspective to people and context to people on every point. But the most illuminating questions that anybody could ask me or question is, what problems have I solved? And the problem is that I saw for my former clients with my firm, and that I want to solve with this book, and also with my new firm, are to reduce the anxiety that individuals have about investing, or that they might have about investing, to eliminate or greatly reduce their ongoing fees and to produce optimal outcomes with their money. And the four critical questions that people really have to answer are how much risk they want. How much risk they have in their portfolio now, and how much risk do they need to optimize their prospects for achieving their goals, as well as what are their expenses that are going to reduce their returns? And just for a little perspective on that and these numbers, you can divide them however you want. But just for perspective, if we say that the typical retirement account is going to do make 7% a year gross return, and I know people want to make more, and the stock market has produced closer to 10% for 100 years every year, albeit with many years of down intervals mean including, by the way, the one month after Covid where the stock market was down 35%, but it recovered quickly, including the 250% declines we had between March of 2000 and March of 2009 and the recovered from that, and it also recovered from an 85% decline during the Great Depression.

Andrew Parrillo:
So the point is that over time, the stock market has been rewarding to people who are patient and have the emotional resolve and resilience to stay invested and to invest more when the market goes down. And that's a stubborn fact. And and our we're not built we're built to to fight or flee. And when we're when we get frightened, we want to flee. Okay. And most and I've and I've been through that. And one of the things I hope I bring to this call and to the book and to readers of the book and to the clients that I will get in my new firm, is just that is emotional resilience and perspective and context on what to expect. If we know what to expect, we're more likely to be unimpressed emotionally by that, and we're more likely to stay invested. And that's been the right thing to do. Now, I'm not the only guy that's been that says this, okay? There's a very famous man whose name is Warren Buffett, who's been saying this for at least 50 years, if not longer, and that is to just just stay invested. Don't try to time the market. Don't try to be cute. As the familiar temptation that people have is to chase something that's going really well, and to run away from something that's not. And you have to try to resist that temptation. It's a familiar temptation. We all have it. That's just the reality. So how do we deal with that? Well, one of the things, I mean, Brian mentioned books, and I'm not as prolific a reader perhaps, as Brian or others are, but I do read and one of the books upon which much of what I'm doing is based and and which was actually a Nobel Prize winning theory from Daniel Kahneman and his partner is thinking fast and slow. So if you want to read a book about the subject about which we're going to which we're going to address in this call is that's a really good one to read. And he talks about and he has developed prospect theory. What is that? Prospect theory is where people can objectively answer a series of iterative questions about how much risk they could tolerate.

Andrew Parrillo:
And if anybody looked at my website, they'd see the title. It says no, your investment risk tolerance before you exceed it. And sadly, many people don't find out what their risk tolerance is until after they have exceeded it. So that's really a key point. And I guess another little quip I would bring out, and this is from another famous person who is not in the investment business, but he probably could be, and that is Mike Tyson. And Mike Tyson said, everybody's got a plan until they get punched in the mouth, and the punch in the mouth is when the market goes down and it terrifies people.

Brian Kelly:
All right. We had a little hiccup there. Keep going. I apologize, Andrew.

Andrew Parrillo:
Well, anyway, let me just continue. All right, so I was talking about Mike Tyson, okay? And he's he's he's a philosopher. I mean, this man is is an amazing human being. Okay. Disciplined. Resilient. I mean, it's hard to find anybody who's more disciplined and resilient than Mike Tyson. And okay, so his thing is everybody's got a plan till they get punched in the mouth. Well, people might have investment plans or other plans and then something happens. They say, oh my God, what am I? And they panic. Well, that's the wrong thing to do. Of course, it's hard not to, but it's the wrong thing to do. So what I want to do is, is, is objectively help people to determine what their tolerance for risk is and by doing, by coming up with a risk score. And that's really based on on this Nobel Prize winning prospect theory, which says that people are two and a half times more concerned with losing money than making money. And I think most of us could relate to that, to that assertion or theory. But you know what I talk about in this book, it's not theory and it's my reality. I lived it with clients for my four decades as an institutional investor. And in terms of what does that mean? Okay. We. You might not recall what happened three, almost four years ago now when the Covid, the aftermath of Covid and the market declined 30 plus percent in 30 days. That's terrifying. But back in 2007, October of 2007, actually the stock market peaked. And then we kind of when things unfolded right through the fall of 2008, where the market really crashed, starting in the in the I think it was September of 2000, 2008 and, and it was down, you know, 50 over 50% between then and March of 2009. And people were quite concerned about the future of the financial system for good reason. Okay. Now, we did come through that and the market recovered starting in March 9th, actually, of 2009. And but I can recount a situation with and I've worked with many client groups through many market cycles. And so what I'm talking about again, it's my reality.

Andrew Parrillo:
It's not some theory in a book. It's like this is real, okay. And okay, so let me set the stage. So I had endowment clients and wealthy individuals as clients and their investment offices as clients. And we allocated assets for them and we recommended allocations to them. And over years. And what did that mean? We did a lot of research to find skillful managers, and we tried to construct portfolios that had complementary constituents. And I won't get into the into the weeds on the technical stuff, but it had low correlation to each other. And it does get a little technical, but you don't have to know that. All you have to know is what I've already said ten times. That is the stock market recovers. Okay. So there's a group, an endowment group that I had and I had worked with at that point for goodness, I think about 15 years. And the committee was comprised of some people whose names you would know if I can't disclose them. Obviously, they were pretty famous, a couple of famous Wall Street types, and they were all professional investors, and they donated to this particular entity because they had a lot of money. And so they were on the investment committee because they were deemed to be experts on investing. Well, I could tell you that, smart as they were and as successful as they were personally and for their respective clients, and they did everything from private equity to, you know, being on MSNBC or, you know, CNBC every week to give people their views on the market. But I can tell you that they responded the way most people would respond. And that is with terror. Why are we in the stock market with our endowment assets? What are we doing? We're getting pressure from the trustees about having money in the stock market. And so as patiently as I could and with as much resolve as I could, I explained to them that in the long term, the reason we own stocks is because corporate managements have a financial incentive to produce an acceptable return for their shareholders. Now, we all know that not every corporate management is successful at that.

Andrew Parrillo:
I mean, that's just a fact. Some companies go out of business, some big companies go out of business and some big companies, you know, falter. And I don't have to name too many names. But things change in the world. And so there's nothing as constant as change is really true in the investment world. But the bottom line is that corporation managed corporate managements that that generate returns for their shareholders are rewarded and the company's stock is rewarded. Now, is it rewarded every day? Is it rewarded every year and the price of the stock? Absolutely not. It depends upon the mood of the market. And one of the one of the axioms I would say that you should remember is that the financial markets are kind of like a fashion place. Things come in and out of fashion. And but the bottom line is that even though things may come in and out of fashion, earnings count, shareholder value counts and return on assets and return on equity counts, okay. And ultimately, that's reflected in the price and the return to shareholders, which as I said, for 100 years now. And oh, by the way, my father, to whom I've dedicated my book is 99.5 years old, quite lucid, and he's quite optimistic about this country's future, by the way. And he's been through the Depression and World War II, where he was in Europe during the war. And so he's seen a whole lot. And he's still very optimistic. But the point is the market's gone up 10% a year for 100 years guys. And you know yeah it might go down for the next 3 or 4 years and scare everybody a lot. But it will come back and it will come back as long as we have a system that supports rewards for good work. And if we don't then it won't come back. Now you have to make that decision. But I'm pretty optimistic about the future and know we have lots of problems. But the cool thing is that there are people. Solving those problems now. Now, maybe they're not solving them as fast as we might like. Okay, maybe they're not solving, or maybe they're not addressing the environmental concerns as fast as we might like, or the other concerns that are pretty clear about homelessness, which to me, by the way, is the biggest problem we have in this country right now is not just homelessness, but the cost of housing for people.

Andrew Parrillo:
And I think this is my $0.02 theory, and I don't have too many theories in my book because I try to just report facts. But my theory is that the Federal Reserve has tried to put a try to try to modulate the housing situation by raising interest rates. They haven't said that, but I do think that's one of the effects. And of course, mortgage rates have more than doubled in the last year, year and a half. And that makes housing even more expensive. House prices have really not come down much because there was an underbuilding for a decade after the two, after the great financial crisis in 2009 when it ended. And that, you know, and that's still with us. So there's still lots of building, but it remains a big problem for our country. We're we're the wealthiest country. We're the luckiest people on the planet because we live in a country where we can make where we have free choice. And and that's and not everybody can say that. And we are really lucky. And one of the themes that I try to drive throughout my book is that when people decide to when they make a a time preference decision about their income, time preference being, do I spend everything now or do I spend some now and save some for the future? And the other point that I bring out in the book is that inflation is pernicious. Okay and consistent. Even 2% inflation is not good. And if anybody looks at my website or YouTube channel, they'll see I did a couple of years ago, I did a two minute video on the subject. What's the value of the dollar? Well, the value of the dollar in the last 52 years is now about buys about $0.11 worth of goods that it did in 1971. Why is 1971 significant? Well, the US went off the gold standard now and by. In no way am I a gold aficionado or proponent or I've never, never in my investment career thought gold was a good investment, nor do I now. And in fact, it really hasn't gone anywhere in ten years in price. In the meantime, the stock market's up about 10% a year in the last decade or so, and it's up even more than that over longer periods.

Andrew Parrillo:
But it's up about 10%. The gold hasn't done anything. But the point is the US did not have enough gold to satisfy redemptions of currencies from foreign central banks that wanted to exchange their dollars for gold. So we we we suspended the gold convertibility. And Nixon did that in August of 1971. And since that time, inflation has been rampant and there have been intervals when inflation, we think the 9% inflation we had a year or so ago, and we're back down to about three or so now, we think that was a lot. No, no, no. Back in the late 70s, inflation was in the teens and interest rates were in the teens. They didn't just go to mortgage rates, didn't just go to 7 or 8%. Now they went to 18%. And so, you know, just keep things in context. But the point is that the value of the dollar has been diminished significantly by inflation. And it will be in the future as long as we have inflation. And and my book talks about that, and that little two minute video I have on the second page of my website gets into some of the history as well. And it's one of these things where everybody knows the price of gas and everybody knows what the price of eggs has been doing in the last year or two. And, you know, price of gas is down recently, but the price of food hasn't gone down. It's up a lot. But what they don't think about is, well, what's going to happen to my money purchasing power five, ten years from now. And it's a stubborn fact. But the reality is, unless they do something to preserve their purchasing power, they're going to lose money. I mean, the last ten years, they lost 30% of their purchasing power. And inflation up until recently hasn't really been that bad. I mean, it's been in the low 2%. Remember, we had zero interest rates for a decade until recently until about a year and a half ago. And so it's important to understand that inflation is pernicious and it erodes the value of your money. Now, where has it helped anybody that's owned real estate has done okay, by the way, real estate has been a decent investment.

Andrew Parrillo:
But most of all is shelter for people. It's housing, it's safety. But it hasn't been the best investment. Stocks have actually been better than real estate. But that's okay. You can believe that or not. And I know that a lot of people are think that real estate is is great. And it is and it should be part of everybody's portfolio. But the but stocks are still there liquid. You see their price every day. You know what's going on. You know there's it's very transparent. And so what I'm what I'm advocating is that people just focus on. The power of compounding. And, you know, I think I already I'm not sure I said this, but if I did, I apologize for repeating myself, but for anybody, let's say hypothetical, a half million dollar portfolio that are in 7% a year gross. And the people have an advisor who takes 1%. Okay. So they wind up getting 6% a year. Okay. So over 20 years, how much do you think that 1% adds up to in 20 years? Yeah, 100,000 200,000. The right answer is $331,000. Okay. And so you want to pay your advisor $331,000 over 20 years to get you essentially a market return. Go ahead. Yeah, it's okay with me, but I'm just telling you that making that decision that. Oh, I'm intimidated. I don't know anything about stocks. I don't know anything about. Well, if you read my book, you're going to learn about it. All right? And and I'm not saying anything that Warren Buffett and Jack Bogle at Vanguard and others haven't said, or for that matter, the biggest firm in the world, Blackrock, is basically democratizing investment. So they're making investing accessible to everybody. So it's not just a wealthy person's purview now, everybody can do this and everybody can can preserve their purchasing power for their future, whether that's a retirement fund or their legacy or their education, whatever it may be. But the point is that that time preference decision, how much do I save? How much do I spend is super important and it takes discipline. And you know, I mentioned like Mike Tyson 3 or 4 times already.

Andrew Parrillo:
But that's the discipline you need. Iron Mike Tyson. Yeah that's why he's iron Mike Tyson because he was disciplined. So we have to kind of learn from that man and others. But certainly him and you know, so that's that's really what I talk about in the book. I mean, I go through a lot of a lot of things, you know, with that group I was telling you about with all the trustees that they finally, after a lot of consternation about why they were in stocks in February of 2009, that had already gone down almost 30% at that in their fund. Why were they doing that? Well, because corporations grow well. They decided to stay invested and in fact invested a little more. They took money from bonds and put it into stocks. And literally after that meeting, a couple of those trustees whom I had known, you know, through the industry, they were hedge fund managers, called me and thanked me. For helping them out. Now, every one of those, every one of those committee members was wealthy, okay? They were successfully they were successful financial advisers and managers, but they were still susceptible to the emotional response of the market. It's very important to remember that. And so what I'm advocating, I'm not I'm not here to give you ten Steps to Be a millionaire. Okay. That's not what I'm here to do. I'm not here to clickbait you into doing anything. I'm here to tell you. Talk about some stubborn facts. And the stubborn facts are that you've got to stay invested. And the S&P 500 is 500. And I can get into all kinds of technical discussions. Where is it better to invest for the long term? The S&P has been great, but it turns out that the equal weight S&P has been better. And over 30 years you would have wound up with like 27% higher value of your money if you invested in the equal weighted S&P 500. But in the last handful of years, the S&P, which is weighted by capitalization, which means that the biggest stocks or the Magnificent Seven, as they're being called, you know, the big tech companies have done super well.

Andrew Parrillo:
And so they've outperformed the lower capitalization constituents in the market. But and that may continue for a long time, I don't know. But I'm just telling you that there are different ways to do it. My bottom line is the S&P 500 is perfectly fine. You don't have to get exotic with your allocations. And it's funny because it's not funny. But the algorithms that that I use in my business will optimize portfolios. And I've seen some client or prospective client portfolios that have many different they have a dozen different funds in them, from small cap funds to emerging market funds to international funds, to credit funds to, you know, you name it, they have a dozen different funds. And if we optimize that, guess what happens? It comes out with 95% of the S&P, 505% in the credit fund. That's what happens now. What about bonds? What about insurance policies? Hey, why don't I just buy an insurance policy? Hey. Okay, great. Insurance policies can guarantee you a return. But you have to understand, the insurance companies aren't charities. Okay? They charge a lot. They charge a whole lot more than 1%. Okay, I'm not saying that their that their policies aren't efficacious, that they don't work, that they're not. I actually think that there's something called an index universal life policy that most insurance companies offer. That's a perfectly sound and solid people policy for people who are insurable. And it's a great savings vehicle. And you can put your money in the S&P 500, and it would have very favorable risk reward because the guarantee, the guarantee from the insurance company is you'll never have a zero return. So the market could be down 30% or 20%. It was down 18% in 1922 or 2022. And you would have been zero. You wouldn't have lost a penny in that policy. The problem with that is it is capped on the upside, usually around 10%. But so insurance policies are not by themselves bad. It's just that you have to understand their terms and how they fit into your financial picture. And by the way. In the book. I advocate that everybody should do some disciplined financial planning, whether they use a certified financial planner or their own CPA or some other individual who's qualified.

Andrew Parrillo:
It's up to them, but they really should sit down and take a hard look at things and just get real. These are these are and this is what you have to adhere to if you want to have financial security in the future.

Brian Kelly:
Hey, Andrew, I'd like to interject, if I may. Real quick. Can we repeat the title of your book that you've been mentioning throughout the show? Yeah, yeah.

Andrew Parrillo:
It's Beat the Wealth Management Hustle and the subtitle. The subtitle is something I talked about before. It's eliminate the anxiety of investing and invest independently to gain savings faster with peace of mind. And I just think.

Brian Kelly:
This is very powerful. And I know that this is coming out. This is a live show. It's coming out soon in the next couple of months or so. Is that correct? It'll be made available. So be on the lookout for this. Everyone watching and listening. Definitely we will. We want to do this pretty soon as well. Andrew is pull up your website and give people the ability to connect with you so they can then get notified when your book does come out so they can get a copy. Because I can assure you, everyone watching and listening is going through this, going, look at the passion this man has for this, everything you've been talking about. Thank you for coming out of retirement, by the way, to everyone involved. But I wanted to touch on a few notes that, my gosh, I've got writer's cramp. This is page two, and I wanted to touch on a few things, if I may, and then we'll get into your website and your business in more depth. And one is, well, first of all, your book. Everyone you know, I'll bet you money now that Andrew's going to put up a prerelease website and give you an opt in so you can be notified he has a team to do that. That would be awesome. But he mentioned several things that are true in the investment in the stock market area that are so obviously also true in just business, and that is things like patience and emotional resolve. You must have that in business as well as investing. It's permeates pretty much all of life discipline. Oh my gosh, that's so true. In business one must have discipline. One must have discipline in investing, one must have discipline within a family structure. I mean, it goes across the board and and Yeah got this passion underlined on here that that's what's coming through to me. Andrew, is your undying passion for what you do. What I'd like to do is segue over into your business before we run out of time, because it's very important to me that folks can have a vehicle by which to connect with you and also learn more about what it is you provide. So if you wouldn't mind, I'll pull up your website and you can just take us through what it is you do. Like specifically, we're getting hints of it all throughout this discussion. Number one. Number two is who is your target market? Who do you cater to? Is it business owners? Is it single moms? Is it self-employed or employed individuals? What is your target market? And then third, if you have a great success story or two you'd like to tell, we'd love to hear that as well. Would that be cool?

Andrew Parrillo:
Yeah. That's good. I just got registered with my business in about two months ago and and that's all laid out. And I have a disclosure. And so I'm registered in the state of Colorado, and I can do business with all but four states that are listed there at the bottom of my website. And, and it's I offer non-discretionary service at objective. Objective, very objective, goal setting policy that's described in the site. And in fact, at the bottom of the homepage, there's a little two minute video that's going to be replaced with a better version of it, frankly, uh, and it's right there. And I don't know if you want to play it now, but it's it talks about the process. And basically it goes over what I've just said for the last 40 minutes and that is that understand that the stock market is a long term proposition. Now, who is my ideal client? My ideal client is somebody who has a longer term investment horizon, who is cognizant of the the expense that who is cognizant of the cost of management fees. And so my fee, unlike every other advisor out there and there are 15,000 or so in the country in a multi trillion dollar so-called wealth management business, my fees are fixed fees. So I charge a fixed fee for investment planning and strategy. And for that I would not just help people objectively determine their tolerance for risk and their their investment, their portfolio, their proposed portfolio, but would deliver also to them a statement of investment policy and and the opportunity to check in with me when they want to. Now that that page is what I was talking about. I did this video a couple of years ago walking my dog about the history of money. And that's very important. And it hasn't changed. I wouldn't change one word of that video today. So what I do is I and in terms of who is my ideal client or my ideal client is somebody, again, who has a long term horizon, who has assets to invest and who's prepared to pay an upfront fee for planning, which should stand them in good stead for really for forever, frankly, but for certainly for many years, and also offer a very low fee if they want to check in in six months or so.

Andrew Parrillo:
And I would offer them the opportunity to do that and send in three months and six months or whatever their preference is, the opportunity to check in with me to review the portfolio. How does it look? Is it performing the way they thought? And one of the things that would separate what I do from what most advisors do, and this is also outlined, I think it's below on that page, Brian, but is also if you scroll down, but it's also that we look at things in terms of right there in that risk score. It's hard to see it. But but we model out what's likely to happen over the next six months within a 95% probability range. Okay. And for mathematicians that's two standard deviations. So that's what happens about two thirds of the time. The so those returns around your current value. So if your current portfolio value is is x it could be x plus 20% or x -15% over the next six months. Are you okay with that Mr. or Ms. client okay. That seems to be okay. No I don't like that much downside. All right. Well let's let's adjust the portfolio so that we don't have so much downside risk. And we can do that. And here's what it means over the horizon that you're planning for. Because nobody invests for six months with me I wouldn't accept him as a client if their time horizon was six months or a year or two years, I just wouldn't. And one of the things I would do with every client is ask them to complete a profile, a financial profile, to see what their suitability is to do this, because I'm not going to give anybody advice that is not for which they are not suited, okay, I just won't do that. And then there's more in that site. It's pretty. It's actually a pretty dense site. There's a lot of information there. But that's basically what I do. It's very structured. It's a fixed fee. So the problem with the ongoing fees for most people is they'll they'll hire an advisor because they trust the advisor because the firm is big or the person is super nice or smart, and hopefully all, all of the above.

Andrew Parrillo:
And that can add value. And they decided to pay. So they'll sit down and they'll they'll set up a strategy. And their strategy is, okay, we're going to put you X percent in stocks and y percent and maybe bonds or other assets. And we'll go from there. And most people don't change their holdings. And Warren Buffett's favorite holding period is forever. Okay, so investing does not require trading or clever short term strategies. It requires patience and resolve. And and so that's what we try to do. We try to get people to get into that. So most people have advisors are paying them every day. They're paying them on an annual basis. Most people do not see the fees that they're paying advisors, because all the people I asked didn't even know what they were paying, as you recall that I said. But and the reason they don't is because the advisors, they take it out of their custody accounts. Most people don't even read their statements, so they don't see that the advisor just took out X dollars for fees every three months. But they do. But they're accruing fees every day. So I don't know how. If you have an advisor, how often you talk to your advisor, but it's probably not that often is your advisor working in your account every day? I doubt it, they might be, and if they are and they're making money for you, I'm all for it. I'm all in. I think it's great. There are some really good people out there, but in most cases they're not. And so wait a minute, I'm paying you every day. I talk to you once every two years when the market goes down and you tell me to stay invested. Um. Oh, by the way, also, it's a great business. So I start out with a dollar, and in ten years it's doubled. Okay. Because it's made 7% a year, so it's doubled and now it's $2. So now you're charging me twice as much fee because my portfolio is gone up. Wait a minute. Are you doing twice as much work, or are you just charging me twice as much fee?

Andrew Parrillo:
So that's that's the that's the hustle I'm talking about, folks. It's that people are. They're in denial. There's a lot of inertia about money. And I never go to anybody and say, hey, I can help you with your investments. Now, if they want to come to me, great. We can talk about it and maybe I can help them, maybe I can't. Then I'll tell them if I can't. But but the point is, is they they have to ask and they have to be ready to listen, and then maybe we can help them. But anyway. So yeah. Yeah.

Brian Kelly:
So that's what I wanted to point out is again, to everyone watching listening Andrew came out of retirement because he loves what he does. And you can tell he is very well versed in this. And so the point of all this is simply reach out to him. Go to Victory road.com. And you can either click on the contact link at the very top or just go to Victory road.com/contact. And you can see right there all of his information. If you want to email them separately. It's ADP at Victory road.com. His phone number is on there. He's got a form for you to fill out that he will get an email if you message him. There is no way you cannot get Ahold of him and do so quickly. You know, it's it's so true. Successful people, the only successful people, the people got successful because they are action takers. They take immediate, massive and also add consistent action to achieve success. And that's what you want to do with Robert and Robert. We're getting close on the end of this wonderful show.

Andrew Parrillo:
My brother is Robert.

Brian Kelly:
Your brother is Robert. You just.

Andrew Parrillo:
Said Robert. You called me Robert. Oh I did.

Brian Kelly:
Oh, I'm sorry. Andrew. Wow. I'm a mind reader. Holy smokes.

Andrew Parrillo:
Let me tell you a little story about my brother. My brother is a retired trial lawyer who's tried cases before the Supreme Court. So the guy's no slouch. But, you know, I said, hey, Bob, do you know what you're paying your adviser? Geez, I don't know. But, you know, I really like. And he's in Rhode Island. But I really like going to those polo matches every summer. They're really fun. I said, well, why don't you just ask your father? He said, yeah, you know, I probably should cross-examine her on these questions. So that was his response. It never even occurred to him that he should ask the questions. And he's a trial lawyer. I love it. Literally had I literally had a friend who's a successful real estate broker owns her own firm. And we got talking about this and I said, you know what? You pay your advice. Oh, no, I don't know what I pay him, but it would be confrontational for me to ask him how much he charged me. Wow, talk about mindset, Brian. We got to change people's mindsets about investing and money.

Brian Kelly:
And in general, you're absolutely true. And it's true because so many people have been basically I don't know, I don't like to say hypnotized, but told that money is the root of all evil. But the thing is, that's actually a misquote directly from the Bible. It's the love of money is the root of all kinds of evil. It's the love of money. And in context, it just means if you love money, then you. Then you love your Savior. Then there's you've got issues. It has nothing to do with money by itself. And people have taken that and used it and said, money is the root of all evil. So I am going to keep that in my mindset and I will never make or become wealthy. And a lot of people adhere to that. And it's like, it's so sad. And there are just these little tweaks that things and things that people can do to change their mindset very quickly and easily. And the fact that you just said that, Andrew, I got your name right that time. The fact that you just said that tells me that you know how to coach your clients when you talk to them and tell them, look, let's work on your mindset. That is the place to start. Or one of the places to. Yeah.

Andrew Parrillo:
That's true. You know, one of the things regarding mindset about money is that people are intimidated and they're frozen in place. There's a lot of inertia. They don't really want to wake up in the morning and make a hard decision about their money. And so, you know what? I the original title of my book and my editor said, oh no, no, that's too weak, you can't use that was invest with joy and peace of mind. And you know, to me, if we are in a position where we could actually save money and then invest it for the future and take some risk with it, because we're not going to get a return if we don't take some risk. Savings don't work. Savings accounts really don't work. Yeah, you should have ready cash. Of course, that's what banks are for. But you should invest with joy. And the fact that we have the opportunity to invest is something we should not be concerned or fearful about. We should be rejoicing in that. That's great. And yeah, the market's going to go down and we know that's going to happen. We're ready for it. Market. You know we'll take it. And so my whole thing is like it's a mindset about money that's super important that we have to develop carefully. And we have to nurture that. And you know and that's that's at least that's what I think of I'm here for is to contribute to the being of others in ways that go beyond dollars and cents.

Brian Kelly:
Boom. That was it right there, ladies and gentlemen. That is the essence of Andrew Perillo. I'm not kidding you. That was it. He is here to help people. He is here to help people. And oh my God, I like the original title far better personally, because because it evokes emotion. It is about emotion. People make decisions based on emotion. And those were very two positive emotions joy and peace. Peace of mind. I'm like, My God, where's that book? I'm going to pick it up off the shelf. What is this about? And it says invest with mean. All right. Well I like that one. But you know, to each his own. Well, maybe.

Andrew Parrillo:
I'll change the subtitle. Brian too. There you go. Invest with joy and peace of mind.

Brian Kelly:
Yeah. Mean that could.

Andrew Parrillo:
Be, you know, the.

Brian Kelly:
That would be a much more succinct subtitle. That could work. I love it. I'm just one person. Maybe go pull your your people on wherever you hang out Facebook and such and say which of these two subtitles do you like more. That's I've done that kind of stuff. I've, I've got a book coming out near the same time, my friend. And you won't believe what it's called. Mind body business. Yes. The three pillars of success. Yes. It's all about what we talk about all day long during the show. And so we're getting close to the end and don't have much time left. So, Andrew, a couple of things. You offered a gift and I forgot to bring it up during the pre-show before we came on to verify it's still good. It was something about a complimentary return and risk determination and portfolio analysis. Yeah, okay. Put that up on the screen and how to folks contact you. And what way would you know to say oh that's for this complimentary return.

Andrew Parrillo:
Website has a couple of places where people can click on okay to get that. And that will pull up a questionnaire. And man.

Brian Kelly:
I'm having issues with this thing. Hold on one moment. Here we go.

Andrew Parrillo:
You go to the home page of the site or. Right? Right, right on the top. It says right in the upper right hand corner. What is your risk score? Got it. All right, so load that up and let's see where that goes. Hopefully it works today. It doesn't. All right. So basically the way we work is we assign numbers to people's risk tolerance. And it goes from 0 to 99. And the S&P 500 is a 75 okay. Maybe some people want a lot of risk and they want to own a lot of risky stocks. That could go up a whole lot more than the market, but they could go down a whole lot more too. And I do not encourage trading in stocks, nor do I think that market timing works. So but the point is, if you click on that button, it'll bring you to a questionnaire that has a series of questions that are pretty straightforward. It might take you 3 or 4 minutes to complete it, and when you do, I would get the results of that risk assessment. And then what we do is let's say let's say if someone's risk is is 60 or 65 and a lot of people are going to come out in that range of 50 to 60 and risk, and the next thing we do is we take a look at their if they're a client, take a look at their portfolio, and we run their portfolio through our analytical process, and we see what the implied risk of the portfolio is. And in most cases, the implied risk of their actual portfolio is a lot higher than their desirable risk. Okay. So what do we do then? Well, we have to align their portfolio with their desired risk score. And we could do that pretty easily actually. And this is iterative. And it would be back and forth discussion with the client and do it all online. We do it on the site to look at their portfolio. And how does how does that work. Well, if they want to load their portfolio, I would send them a link to their custodian who might be one of the bigger firms and or even a smaller firm.

Andrew Parrillo:
And so we download the portfolio, we do the analysis and we say, okay, your risk score is 82. Did you know that that score was 82? Oh my goodness. That's more than I really wanted. But let's take a look. What does that mean over the horizon your planning horizon your retirement horizon or your 20 1020, 3040 year horizon. And we look at that and we come up with a probability of returns within over that horizon, within a 95% probability range with with a median to shows what they're likely to return. And then there's a percentage probability that that generates. So people could actually see in dollars and cents what their money would be worth in X years in the future. And based upon how much money they want to take out at retirement or for whatever other reasons, how much money they put in during the investment investing period, what their inflation assumption is, and other variables that we could talk about. So it's a very structured, disciplined way. And one of the things, one of the things I did not say and we have a couple more minutes here. So I will say it rules are super important in life and customs and you know, are super important. And we all know and we can all think of things where we have our own rules in life. And we know that any time we violated those rules because we made an exception for the rules, because, hey, this time is different, it's going to be different. I'm going to make an exception because this is a good situation. I would guarantee you that if you think about the times that you stepped outside of your own rules based world, you probably regret it. Okay, so it's important to stick with the rules that you set up. And the other thing I say to people, you are your own chief investment officer, not the person at the big famous investment advisory wealth management firm. They're not your investment officer. You are. You're in charge. They're taking risk with your money. You're paying them to take risk with your money. Okay? So just remember that, folks, that this is something you can you can sidestep and you can have some coaching along the way from me frankly on that.

Andrew Parrillo:
And I'm hoping to disrupt a multi trillion dollar. Wealth management industry that charges asset based fees. And I'm just.

Brian Kelly:
Fantastic.

Andrew Parrillo:
Anyway that's Andrew.

Brian Kelly:
For everyone out there listening, go to victory Road.com. When you're there on the upper right, you'll see what is your risk score? A nice big blue button. Click that and that will take you what he was just describing to what he was just describing. We have one final question to ask. That's why I so abruptly cut you off. Apologies for that, Andrew. And that is a question that I ask every single guest that has appeared on this show, actually, the last few years, I would say that I've done that. And it's a very profound question, and I love asking it because you'll find out why. The cool thing is that this question is one of the well, there's two cool things about it. One is there is no such thing as a wrong answer, Andrew. It doesn't exist. It's not a quiz. It's not a test. The really cool thing is because it is very unique to you, your answer will be so the opposite. The exact opposite is true, and that is that the only correct answer will be yours. And that is true even if it takes you a minute to come up with the answer, maybe it will take you instant. Maybe it'll be a few seconds. It doesn't matter because it is your answer. There is no way to fail this. And just so you're aware, and I don't often I forget to tell a lot of my guests this. If the answer is long enough. I mean, I'm saying don't answer it with 1 or 2 sentences unless you don't want the answer included in a collaborative book by the title of the question when I put that together later down the road. So think about that. Ponder, and then we'll get to it. Like right about now. Is that cool with you? Cool. All right. I knew you would be all right. Here we go, Andrew Perillo. How do you. Define. Success.

Andrew Parrillo:
How I define success is my ability to contribute to the well-being of others.

Brian Kelly:
Mhm. Right down the middle striker. And there's no no wrong answer. Like I said before that's going to be a very short chapter of the book but a very good one.

Andrew Parrillo:
That's what drives that look. What are we here for. We're here to help each other.

Brian Kelly:
Exactly. Fantastic. Yeah, and that's it. I mean, you are doing just that. You have a service you provide that helps people to basically invest with joy and peace of mind. Where do I hear that once before? Yes. And I love that you came back out of retirement and are doing what you love, and you are so obviously qualified to do, and that you're not there just to extract fees from people at every turn. You're here to provide them a service. Yes, they must pay for it. But it's not to extract money from them. It's to show them how to build wealth over time instead of just. I want to earn a percentage on every commission of every transaction, which so many others have done as well. So, Andrew, I want to say I appreciate you, my brother. We have come to the end, and I hope that we have a lot of folks that reach out to you. Remember, it's victory Road.com go there, click through. There's a lot of resources there. Watch his videos. Definitely go in and take your what is your risk score, an assessment that is done automatically through his website as you ask or enter a answer. A few questions. I can do it and go through learn about them. But you know what? Instead of just going through and analyzing the heck out of every page, just take action. Go to the contact tab as well and reach out to them and have that conversation. You can tell he won't bite. At least I haven't. He's never bitten me, I'll tell you that. And so he's a wonderful man. Get to Andrew Perillo, go to victory Road.com any last very quick, succinct parting words of advice you have for people just starting out, Andrew? Well, I'm just.

Andrew Parrillo:
Ever grateful for the opportunity to convey my passion to others. Thank you.

Brian Kelly:
And we are very grateful that you spent the time doing so. You're very welcome, my friend. All right. That is it for us here on the mind Body Business show for this episode. On behalf of the amazing Andrew Perillo, I am your host, Brian Kelly of the Mind Body Business Show. Until next time, please do just two things. That's all I ask. Number one, go out and crush it in business so you can serve more people. And number two, above all else, everyone, please be blessed. That is it for now. So long. And take care. Thank you for tuning in to the Mind Body Business Show podcast. At www.theMindBodyBusinessShow.com. My name is Brian Kelly.

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