Crazy Wealthy Podcast

Welcome to Fusion Fix-It Fridays, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In today's episode, Jonathan dives into the timeless question: Can money buy happiness? While many may believe wealth leads to fulfillment, Jonathan challenges this idea by exploring how our brains are wired for the fleeting pleasure of material gain and why true happiness lies in far deeper sources of meaning. He’ll share insights from the 1700s by French philosopher Montesquieu, discuss the concept of “enough,” as illustrated by Joseph Heller, and offer advice on assessing your happiness beyond the pursuit of wealth. Tune in for a thought-provoking conversation that may change your thoughts about success and contentment.

IN THIS EPISODE:

• [1:14] Jonathan explores the dopamine rush that comes with buying
• [2:22] Montesquieu’s timeless insights on happiness and comparison
• [4:00] Jonathan’s formula for assessing your happiness
• [4:35] A thought-provoking example from Morgan Housel and Joseph Heller on the concept of ‘enough’
• [6:24] Jonathan offers final advice on why money can’t buy true happiness

KEY TAKEAWAYS:

• Money can't buy lasting happiness because our brains are driven by the dopamine rush from anticipating new possessions, not from the items themselves. This creates a cycle of constant desire for more, similar to an addiction, where the excitement of acquiring something new fades quickly, and we're left craving the next big thing. True happiness isn't found in material wealth but in deeper, more meaningful sources of fulfillment.
• Montesquieu's insight from the 1700s still rings true today: our desire for happiness is often less about achieving personal joy and more about being happier than others. Social media, particularly Facebook, amplifies this by showing only the highlights of others' lives, creating an illusion of greater happiness. We measure our success and happiness in relative terms, constantly comparing ourselves to others rather than finding absolute satisfaction or what truly brings us fulfillment.
• The principle of "enough" highlights that true happiness and contentment come from recognizing when we have reached a point of fulfillment rather than constantly striving for more. Joseph Heller's response to the billionaire hedge fund manager—emphasizing that he had "enough"—shows that contentment isn't measured by wealth or material success but by the ability to acknowledge and appreciate what we already have. Without this sense of enough, we will always move the goalposts, and money alone will never bring lasting happiness.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

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Welcome to the Crazy Wealthy Podcast, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In this episode, Jonathan welcomes his first official guest, Harvey Radler, a close friend for over three decades and a seasoned investment and wealth management expert for over five decades. Together, they dive into Harvey's extensive background, the impact of early commission-based sales tactics, and the challenges of the industry’s shift to fee-based, client-centered models. From the infamous Bernie Madoff story to insights on market uncertainty, Harvey provides knowledge on navigating the complexities of today’s financial markets and the importance of staying the course.

IN THIS EPISODE:

• [5:34] Harvey Radler shares his background and history of selling stock
• [11:34] The Bernie Madoff story
• [15:36] Converting to commission-based fees
• [19:57] Buying investments to lose money
• [23:44] Certainty is not available in financial markets 
• [31:10] Sticking to your plan

KEY TAKEAWAYS:

• Aggressive sales tactics in early stock trading spurred the creation of mutual funds for centralized management, benefiting tax-deferred pensions but causing tax issues for individual investors, leading to the development of SMAs and tax-efficient index funds like the S&P 500. Despite these advancements, investors remain susceptible to emotional biases like fear and greed, often leading to poor decisions.
• The shift from commission-based to fee-based and discretionary accounts marked a major change in the investment industry, aligning advisors' interests with their client's interests by charging a percentage fee based on assets rather than individual trades. This model encouraged advisors to prioritize clients' long-term success as fees increased with portfolio growth. 
• Certainty in financial markets is an illusion driven by claims of predictive expertise through forecasts, stock analysis, and fund managers. Despite assurances, consistent outperformance and market timing remain elusive, often causing investors to overreact instead of gaining clarity.

GUEST BIOGRAPHY: 

Harvey, Managing Director of Fusion Family Wealth, brings over 60 years of investment expertise to the firm, where he also serves as vice-chair of the investment committee. He and Jonathan Blau co-founded the Blau Radler Group in 2000. Harvey’s career includes roles at Wertheim & Co./Schroders, Prudential Securities, Sanford Bernstein, and Morgan Stanley, and he served on the NYSE disciplinary panel for 25 years. A Wharton School graduate, Harvey’s deep industry experience continues to benefit Fusion’s clients.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

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Welcome to Fix It Fridays on the Crazy Wealthy Podcast with Jonathan Blau, CEO of Fusion Family Wealth. In these quick, bi-weekly episodes, Jonathan unpacks common financial missteps and the behavioral biases that often trip up even the savviest investors. Today’s episode dives into the critical lesson of separating politics from investing. With insights from historical data and key moments in U.S. political history, Jonathan highlights why emotional reactions to elections shouldn't influence your financial decisions. Stay tuned for valuable takeaways, including a perspective from Warren Buffet on maintaining a steady investment strategy.

IN THIS EPISODE:

Welcome to Fix It Friday on the Crazy Wealthy Podcast, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In these bite-sized, bi-weekly episodes, we dive into common money mistakes and explore the behavioral biases that even the most successful entrepreneurs and executives often overlook when investing.

Today, Jonathan discusses a critical misconception: success in business doesn’t automatically mean success in investing. Many high-achievers fall into the trap of overconfidence, mistaking their business skills for investment prowess. Join us as we unpack these pitfalls and provide practical insights for better decision-making in uncertain times. Whether you're a seasoned executive or an aspiring entrepreneur, there's something here to help you strengthen your financial foundation.

IN THIS EPISODE:

• [1:02] Welcome to Fix It Friday. 
• [2:28] Being a successful businessperson does not make you a great investor
• [4:07] Example of why success in business does not translate to investments
• [7:30] Skills to run a business and investment skills are not the same
• [9:01] Overconfidence leads to investment mistakes
• [9:43] Take advantage of this podcast to learn how to succeed in investing

KEY TAKEAWAYS:

• Success in business does not automatically translate to success in investing. Successful businesspeople often need help investing, such as overconfidence bias, where they believe their business acumen guarantees investment success. This can lead to poor decision-making, and they may need more behavioral guidance than they realize to avoid costly mistakes.
• Entrepreneurs often thrive by going "all in" on a big idea, investing all their skills, energy, and capital to drive their venture's success—sometimes against steep odds. However, to succeed as long-term investors, they must adopt an opposite approach: spreading their resources across multiple investments to manage risk and ensure steady growth rather than concentrating everything on one high-stakes venture.
• Successful entrepreneurs and executives often fall into costly habits around money and uncertainty, driven by a tendency to attribute success to skill rather than luck. This bias can prevent learning from mistakes, as failures are more likely to be blamed on external factors. Recognizing these tendencies and seeking insights into correct investment strategies can help counteract these biases.

RESOURCE LINKS 

In the inaugural episode of the Crazy Wealthy Podcast, host Jonathan Blau, CEO of Fusion Family Wealth, shares his personal story and how it shaped his approach to wealth management. He explores the cognitive and emotional biases that influence financial decision-making, such as loss aversion and regret aversion, and discusses how understanding these biases can help individuals make more rational financial decisions under uncertainty. Jonathan also previews future episodes and introduces the Fix It Fridays mini-series, which will tackle biases in short, actionable episodes.

IN THIS EPISODE:

• [00:57] Meet Your Host Jonathan Blau
• [03:04] The Purpose of Crazy Wealthy Podcast
• [04:42] Understanding Emotional Biases
• [08:36] Cognitive Biases in Financial Decisions
• [11:40] Information Overload and Decision Making
• [13:49] The Role of Temperament in Investment Decisions
• [14:23] Accessibility Bias in Investing
• [15:13] The Illusion of Certainty in Financial Advisory
• [16:48] The Media's Influence on Financial Decisions
• [19:53] Understanding Luck and Risk in Investments
• [21:48] Introducing Fix It Fridays
• [22:35] Podcast Availability and Conclusion

KEY TAKEAWAYS:

• Loss aversion leads people to prioritize avoiding losses over pursuing gains, often hindering long-term wealth-building strategies.
• Regret aversion can cause individuals to avoid making future financial decisions due to past investment failures, limiting growth opportunities.
• Emotional and cognitive biases systematically influence poor financial decisions, but they are predictable and can be corrected.
• The key to success in investing isn’t just knowledge, but temperament—knowing what to do and sticking to a long-term strategy despite short-term volatility.

RESOURCE LINKS