EVERY SPOKEN WORD
15 min read · 2,582 words- 0:00 – 0:47
Listener dilemma: Mom betting against the U.S. economy and going all-in on gold
- KSKara Swisher
This question comes via email, I'll read it. "Hi Kara and Scott, big fan of the podcast and would love your insights on a financial challenge with a parent. How do you approach financial planning with a parent who is increasingly keen on betting against the US economy influenced by questionable sources and conspiracy theories, basically anything but mainstream media? My mom is particularly bullish on gold, convinced that the US dollar is on the verge of collapse. I strive to listen and offer data-driven advice, but I'm concerned if I challenge her beliefs too directly, if I push her further to those ideas. How can I communicate that the US economy isn't on the brink of implosion without alienating her? Thank you, Nikki from Texas." Oh man, Scott. (dramatic music) Oh, I don't know, get control of her stuff, I guess, Nikki. Uh, Scott, you answer this one.
- SGScott Galloway
(laughs) Never committed?
- KSKara Swisher
Never committed, like, uh...
- SGScott Galloway
Um, no, I-
- KSKara Swisher
My mom spends way too much money, but it's her money. I don't really care what she does with her money.
- 0:47 – 1:08
Scott’s reframing: Stop arguing the thesis—focus on what no one can predict
- SGScott Galloway
I think you gotta reframe the argument, and that is rather arguing against her for an asset class, 'cause quite frankly, she might be right and you might be wrong. Each of you has a 50/50 likelihood that gold is a good or a bad investment or the US economy is gonna go up or down from here. It's the wrong argument. The argument is the following. It's, "Mom, we have some money, you have some money. Nobody knows. The brightest people in the world don't know."
- 1:08 – 1:38
Practical portfolio boundary: Cap the “gold bet” and diversify the rest
- KSKara Swisher
Yeah.
- SGScott Galloway
"What they do know is that we shouldn't put too many of our eggs in one basket. Mom, if you feel you have insight here or you get some reward from picking this stuff, then okay, we're gonna take 10, maybe 15% of your assets and you're gonna buy gold. But we're gonna put the rest in diversified index funds, 'cause here's the thing, Mom. You don't have the time to make it back, and it doesn't matter how smart you are. Warren Buffet lost 50, 60% of his net worth during the great financial recession. You can be a genius, the market will always trump individual behavior. So
- 1:38 – 2:17
Why diversification matters: Even geniuses take big drawdowns
- SGScott Galloway
if you wanna have some fun, you're really into gold, fine, but the majority of your assets, because we love you and we wanna make sure that you are always economically fine and that you don't have the emotional stress or financial stress at this age, we're putting the rest in diversified index funds. Can we agree on this, Mom? You wanna put some money in gold, fine, but the majority of it needs to be in diversified low-cost index funds." Don't argue over asset classes. She knows no less or more than you. What you know is that she needs to be diversified and ensure she doesn't have the stress or financial stress at this point in her life.
- 2:17 – 2:28
Kara’s counterpoint (and dark humor): Control vs. autonomy
- KSKara Swisher
Listen, Nikki. I would do the opposite.
- SGScott Galloway
(laughs)
- KSKara Swisher
I would, um, I would make a fake gold bar and hand it to her and try to get control of her finances.
- SGScott Galloway
That's, that's called parental abuse. (laughs)
- 2:28 – 3:08
Focus on fraud prevention: Protect seniors from scams, not opinions
- KSKara Swisher
That's correct, because, uh, you're protecting her. Uh, I think, uh, uh, is, is she old? I don't know. If she's not old, uh, I don't know. I'm always like with my mom and her money. Um, you know, if it's your money, spend it down to zero, and then you'll be at our behest at some point. But I don't, I think you can't protect people from the things they wanna do. What you can protect them from is schemes and things like that. That's something that's important. Don't let her buy Trump gold coins or, or sneaker, gold sneakers or whatever, if she happens to like gold. Um, be careful of scams and get, keep her out of those. Let her buy a gold, whatever, gold future or whatever.
- SGScott Galloway
Individual assets, Kara, are a scam.
- KSKara Swisher
Yeah. Yeah. Uh, well yes.
- SGScott Galloway
Individual assets at that age are a scam.
- 3:08 – 3:25
Gold logistics and safe-keeping: If physical assets, reduce theft risk
- KSKara Swisher
Yeah, I agree, but I'm just saying, just buy a little bit of a gold... What is it? Gold future? What do you buy? What... You don't actually buy gold, right?
- SGScott Galloway
Gold future. Give her some Krugerrands. Old people like Krugerrands.
- KSKara Swisher
Yeah, Krugerrands.
- SGScott Galloway
Not an engager. Just give her some-
- KSKara Swisher
Put them in your, put them in your, um, put them in a safe so people don't come and steal them from her as she gets older.
- SGScott Galloway
Have her, have her stay at, at Trump Plaza and there's gonna be gold everywhere.
- 3:25 – 4:06
Kara’s personal example: Let parents spend—intervene when there’s exploitation
- KSKara Swisher
Gold everywhere. I don't know. I, it's very difficult. Uh, my policy with my mom is just she wants to spend her money, let her do whatever she wants to do as long as she isn't fooled by something.
- SGScott Galloway
What does Lucky spend her money on other than Pucci dresses?
- KSKara Swisher
Oh my God.
- SGScott Galloway
She looks fabulous. Which-
- KSKara Swisher
She does look good. Um...
- SGScott Galloway
Which does she spend her money on?
- KSKara Swisher
Oh, uh, silly things. Buy stuff for like the children, my kids-
- SGScott Galloway
That's fine.
- KSKara Swisher
... and, um, uh, a lot of that, um, a lot of stuff we don't... We get a package from Ralph Lauren every five minutes, which we, most of which we take back and we-
- SGScott Galloway
Your daughter's a podcast baller. Her son owns a coal company.
- KSKara Swisher
Yeah.
- SGScott Galloway
And the other son is the head of anesthesiology.
- KSKara Swisher
Yeah.
- SGScott Galloway
She should be spending all your money. Lucky-
- KSKara Swisher
No, I know that. I get it.
- SGScott Galloway
Lucky, go to Vegas. Get a cocaine habit, Lucky.
- KSKara Swisher
I, I, I... She used to buy clothes.
- SGScott Galloway
Your kids are rich.
- 4:06 – 4:36
Real scam story: Sharing bank info by phone and why vigilance matters
- KSKara Swisher
It used to be clothes and, and, and rental properties, and she's, you know, whatever. She likes to... She has a shopping problem, I would say, but she likes it, it makes her happy. I don't know what to say. It's her money. Um, she should do whatever he wants with it as long as she doesn't get scammed out of it, which really... There was an incident where she gave someone her numbers on the phone, very typical, and they were trying to get into her bank account. My brother handled it. That kind of stuff. I just, as she gets older, Nikki, watch for scams. It really is something sad that happens to not just elderly people, but they're much,
- 4:36 – 5:36
Audience engagement: Join “Club Pivot” and answer their AI-usage question
- KSKara Swisher
they're much in the focus of those people. Anyway, um, while we're on listener mail, we want, uh, to start having you, the audience, be more part of the show. To start, we have a question for you. How often are you personally using AI, just like Scott Galloway? Now to answer, go visit us on Threads at Pivot Pod, uh, Pivot Podcast Official and submit your answer. Uh, and let us know what else you wanna know about Club Pivot, also known as your fellow listeners. Is that what we're calling them? Club Pivot? Club Pivot. I like it.
- SGScott Galloway
Club Pivot.
- KSKara Swisher
You like that? I don't know, it seems kind of cool.
- SGScott Galloway
Yeah, anyone can get in. Cheap drinks and anyone can get in.
- KSKara Swisher
Anyone can get in. Yeah. Which-
- SGScott Galloway
People are not that attractive, but it's free.
- KSKara Swisher
It's free. Yeah. (laughs)
- SGScott Galloway
(laughs)
- KSKara Swisher
Anyway, give us your answers. We'd love to know how you're personally using it. We talk about how we use it, es- especially Scott who uses it much more than I do but, um, please let us know and we'd love to hear from you. If you've got a question of your own you'd like answered, send it our way. Go to nymag.com/pivot to submit a question for the show or call 855-51-PIVOT or
Episode duration: 5:36
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