The Candy Valentino Show: How To Navigate Investing During Uncertain Times

Release Date: January 13, 2025
Host: Candy Valentino | Cumulus Podcast Network
Guest: Joe Saul Sehi, Co-Host of the Stacking Benjamins Podcast

1. Introduction to the Episode

In this insightful episode of The Candy Valentino Show, host Candy Valentino welcomes Joe Saul Sehi, co-host of the popular Stacking Benjamins podcast. The conversation is themed around navigating investments during volatile and uncertain market conditions. This live discussion delves into practical strategies for investors, especially business owners and entrepreneurs, aiming to build and sustain wealth over the long term.

2. Understanding Market Volatility and Investor Psychology

Candy initiates the conversation by addressing current market instability, highlighting significant declines in mutual funds and individual stocks. She poses a crucial question: "What should investors do when faced with all-red days or weeks in the market?"

Joe responds with a reassuring perspective:
"Feel the fear, but do it anyway." [02:46]

He emphasizes the importance of remaining invested, pointing out that historically, the stock market rises approximately 70% of the time over long periods. Joe cautions against withdrawing investments during downturns, explaining that pulling out positions investors on the less favorable 30% downturns, thereby missing out on subsequent recoveries.

Notable Quote:
"The stock market goes up over long periods of time, about 70% of the time. And if we believe in the economy, we're in the stock market, so it actually is less risky to stay in." [03:10]

3. Long-Term Investment Strategies for Different Demographics

Shifting focus to investment strategies tailored for younger investors (under 40) and business owners, Joe outlines a holistic approach:

1. Begin with the End in Mind: Define clear financial goals and investment horizons.
2. Simplify Investment Choices: Focus on a few reliable investment vehicles rather than numerous speculative options.
3. Prioritize Inflation-Beating Investments: Emphasize assets that historically outpace inflation, such as stocks and real estate.

Notable Quote:
"If I begin with the end in mind and I know where I want to go, then I take out my compass and I ask myself some questions." [09:03]

4. Investment Vehicles: Index Funds, REITs, and Solo 401Ks

Joe advocates for a conservative yet effective investment strategy centered around:

• Index Funds Over Individual Stocks:
  "My bias is always toward indexes over individual positions because I know reliably the S&P 500 historically over long periods of time has given me 10 to 12%." [13:57]

• Real Estate Investment Trusts (REITs):
  REITs offer diversified exposure to real estate without the hassles of property management.

• Solo 401Ks for Business Owners:
  Solo 401Ks provide significant tax advantages and retirement planning flexibility, especially when combined with Roth contributions.

Notable Quote:
"Real estate has done it reliably, those two things: stocks and real estate." [13:57]

5. The Importance of Tax Planning Over Transactional Tax Preparation

A significant portion of the discussion centers around effective tax strategies. Joe differentiates between transactional tax preparation and proactive tax planning, advocating for the latter to maximize financial benefits.

Notable Quote:
"Our goal with tax planning is to set up that puzzle ahead of time so that by the time we get to January, we've already got cool tools that the tax preparer can easily apply." [22:48]

He underscores the value of building a relationship with a knowledgeable tax advisor who can provide tailored strategies throughout the year, rather than just during tax season.

6. Leadership and Business Strategy: Focusing on Core Strengths

Joe shares insights on effective leadership and business management:

• Delegate Non-Core Tasks:
  Focus on what you do best and delegate other responsibilities to empower your team.

• Avoid Micromanagement:
  Trust your team to handle tasks without constant oversight, fostering autonomy and accountability.

• Invest in Coaching and Personal Development:
  Continuous learning and coaching are pivotal in identifying and honing one's unique strengths.

Notable Quote:
"What made you successful to this point is not going to be what makes you successful later." [33:49]

7. Avoiding Burnout and Maintaining Focus

Addressing the common issue of burnout among entrepreneurs, Joe references Sam Altman's perspective:

Notable Quote:
"You get burnout when you're working on the wrong task. There's no such thing as burnout if you're doing the right thing." [36:17]

He advises entrepreneurs to regularly assess their tasks to ensure alignment with their core strengths and business goals, thereby maintaining passion and preventing exhaustion.

8. Practical Advice for Entrepreneurs and Investors

Towards the end of the episode, Joe and Candy offer actionable tips:

• Simplify Your Portfolio:
  Utilize index funds and REITs to build a diversified and manageable investment portfolio.

• Proactive Tax Planning:
  Engage with tax advisors year-round to implement strategies that maximize tax efficiency.

• Focus on Core Competencies:
  Identify and prioritize activities that drive business growth while delegating or automating other tasks.

Notable Quote:
"If I focus on that one thing and delegate the rest, I think we're going to pick better investments and be less likely to wreck our own plan." [04:38]

9. Closing Thoughts and Resources

In wrapping up, Joe promotes his book, "Your Super Serious Guide to Modern Money Management," and encourages listeners to explore his show, Stacking Benjamins, for more in-depth financial advice.

Final Quote:
"Focus on what truly is going to be the driver. The driver is this one thing that I am truly good at, and I delegate the rest." [28:02]

Where to Find More Information

• Candy Valentino:
  Follow @candyvalentino on all social media platforms. Subscribe to her YouTube channel for episode recordings.

• Joe Saul Sehi:
  Visit the Stacking Benjamins podcast on StackingBenjamins.com.
  Check out his book, "Your Super Serious Guide to Modern Money Management," available on major retailers.

This episode offers a wealth of knowledge for investors and entrepreneurs navigating uncertain financial landscapes. By emphasizing long-term strategies, focused investment approaches, and proactive financial planning, Candy Valentino and Joe Saul Sehi provide listeners with actionable insights to build and sustain wealth effectively.