Chief Change Officer Podcast Episode #205: "Collin Plume: From Kid Collector to Gold Guru – Part Two"
Release Date: February 28, 2025
Host: Vince Chan
Guest: Colin Plume
In the latest episode of Chief Change Officer, host Vince Chan engages in a profound conversation with Colin Plume, delving deeper into the principles of people-focused finance and the pivotal role of diversification in personal and professional financial strategies. This two-part series sheds light on Colins's transformation from a "Kid Collector" to a "Gold Guru," offering listeners invaluable insights into building and sustaining wealth in an ever-evolving financial landscape.
1. Rethinking Traditional Investments
Diversification Beyond Conventional Assets
Colin emphasizes the importance of not limiting investments to traditional assets like stocks and real estate. He underscores the significance of incorporating precious metals into one's portfolio to hedge against inflation and economic uncertainties.
"If you go back the last 150 years, gold has been able to keep up with inflation and the cost of living in a way that most other items have not." (03:23)
The Declining Returns of Traditional Savings
Addressing the diminishing returns from traditional bank savings, Colin points out the allure of gold, which has outperformed many conventional investments, particularly during inflationary periods.
"With inflation being something that everybody is talking about... gold is up 27% even though the banks are paying 4%." (03:23)
2. The Evolving Concept of Retirement
Working Longer for Purpose and Income
The conversation transitions to the changing dynamics of retirement. Colin shares anecdotes about individuals choosing to work beyond traditional retirement ages to stay mentally sharp and maintain a sense of purpose.
"Maybe having one of these gig jobs, a part-time job, there's so many... people that are in their 60s and 70s and 80s could do writing." (12:04)
Financial Strategies for Extended Working Years
Colin highlights the necessity of having diversified income streams to support longer lifespans, especially as life expectancy increases. He advocates for investments that can sustain one's quality of life throughout extended retirement years.
"Having some purpose in their life... having another income stream in your later years can be really helpful." (12:04)
3. The Rise and Risks of Financial Influencers
Democratizing Financial Information
Acknowledging the positive aspects, Colin appreciates how financial influencers have made investment knowledge more accessible to the masses, catering to different learning styles.
"You could go to YouTube and look up Tesla and you could get different sides of the story and different ideas." (18:38)
The Dangers of Unverified Advice
However, Colin cautions against blindly trusting influencers without conducting personal research. He cites the NFT craze as an example where influencers may have promoted unreliable investments for personal gain.
"The bad thing is that they think they are authorities and people believe they are authorities." (18:38)
Strategies for Safe Engagement with Influencers
He advises listeners to critically evaluate the credibility of financial advice from influencers, emphasizing the importance of multiple sources and personal due diligence.
"When you're getting into investing... you gotta do research and check different sources." (18:38)
4. Financial Education and Preparing the Next Generation
Instilling Financial Literacy in Children
Colin shares his personal approach to educating his children about money, emphasizing transparency and practical understanding from a young age.
"I talk to them all the time about money and what things cost... I want them to understand the cost of things." (27:41)
Value-Based Spending and Investment
He advocates for teaching children the difference between needs and wants, focusing on investing in assets like gold and silver that hold intrinsic value over time.
"That's the future of success is buying assets that have value, understanding the value of things." (27:41)
Creating a United Front in Financial Values
Colin highlights the importance of aligning financial values and goals within the family to ensure consistent and effective financial education for children.
"What my wife and I call is a united front... we have the same financial values and goals." (27:41)
5. Personal Anecdotes and Practical Applications
Real-Life Examples of Diversification
Throughout the episode, Colin shares real-life instances of how diversification has benefited his clients and himself, citing experiences in real estate, precious metals, and stock investments.
"A lot of my clients that I had when I was in commercial real estate, many of them bought gold and silver from me... they were so happy that they diversified out of real estate." (06:19)
Leveraging Precious Metals for Long-Term Gains
Colin discusses the tangible benefits of investing in gold and silver, illustrating with his own investment in a kilo gold bar that appreciated significantly over five years.
"I showed my son a kilo gold bar that I acquired many years ago... today it's worth over $80,000." (27:41)
6. Concluding Insights
The Importance of Continuous Learning
Both Vince and Colin emphasize the value of ongoing financial education, not just for personal growth but also for making informed investment decisions in a rapidly changing economic environment.
"Learning always has long-term value, no matter what. It's an investment that never depreciates." (36:27)
Balanced Approach to Wealth and Well-Being
The episode concludes with a reflection on balancing financial pursuits with personal well-being, advocating for investments that not only grow wealth but also enhance the quality of life.
Key Takeaways:
- Diversification is Crucial: Beyond traditional investments, incorporating assets like gold and silver can protect against inflation and economic volatility.
- Redefining Retirement: Embracing extended working years can provide purpose and additional income, supporting a sustained quality of life.
- Critical Engagement with Financial Influencers: While influencers democratize financial knowledge, it's essential to approach their advice with critical thinking and personal research.
- Early Financial Education: Teaching children about money management and investment from a young age fosters financial literacy and responsible decision-making.
- Continuous Learning: Staying informed and adaptable in financial strategies is vital for long-term success and resilience.
This episode of Chief Change Officer offers a comprehensive exploration of modern financial strategies, emphasizing the significance of diversification, lifelong learning, and proactive financial education. Colin Plume's insights serve as a guide for listeners aiming to outgrow themselves by adopting forward-thinking approaches to personal and professional finance.
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