Crazy Wealthy Podcast

Welcome to another insightful episode of Fix-It Fridays, the podcast segment that simplifies financial strategies to help you make smarter decisions. Hosted by Jonathan Blau, CEO of Fusion Family Wealth, each episode dives into common biases that impact our financial choices—and how to fix them. This week, Jonathan tackles the two biggest threats to investor wealth: inflation and investor behavior. Focusing on long-term financial success, he offers valuable advice on navigating these challenges. Tune in!

IN THIS EPISODE:

• 00:00 Podcast Intro and Disclaimer
• 00:50 What are the external and internal threats to wealth?
• 02:24 How does inflation erode purchasing power?
• 04:26 What are Loss Aversion and Ambiguity Bias in Investing?
• 05:58 How can investor behavior become an internal threat?
• 06:59 Long-term stock market performance despite volatility
• 08:31 How bond investments can impact your portfolio
• 09:32 Gold as an Inflation Hedge: Myth vs. Reality
• 10:34 External threats: how the media influence investors

KEY TAKEAWAYS:

• Inflation impacts purchasing power, making it essential to consider an inflation hedge within your portfolio to protect investor wealth.
• Investor behavior, influenced by biases such as loss aversion and ambiguity bias, can lead to poor investing decisions. Understanding these biases is crucial for effective financial planning.
• Predictions and media influence can skew investor psychology, often leading to volatility misconceptions and missteps during bear markets.
• Jonathan emphasizes the importance of a diversified portfolio to mitigate threats to wealth, including sequence of return risk.
• Bond investments play a strategic role in safeguarding against the sequence of return risk, especially for those approaching retirement.

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 another insightful episode of the Crazy Wealthy Podcast hosted by Jonathan Blau, CEO of Fusion Family Wealth. In this episode, Jonathan addresses investor concerns about market volatility, offering insights and strategies to maintain a rational perspective during uncertain times. He also guides listeners through understanding market fluctuations and the importance of a long-term investment approach in volatile markets. Tune in!

IN THIS EPISODE:

• 00:00 Podcast Intro and Disclaimer
• 02:01 What Does Market Volatility Mean for Investors?
• 03:34 Recent Market Corrections: A 10% drop in the S&P 500 is not unusual
• 06:07 Will Market Volatility Hurt My Portfolio?
• 11:13 Which Market is Most Volatile?
• 18:50 Misconceptions on Warren Buffett's Strategy
• 22:25 Importance Of Diversification Beyond S&P 500
• 24:27 The Most Important And Difficult Action In Volatile Markets
• 26:11 Podcast Recap with Jonathan and Amy

KEY TAKEAWAYS:

• Market volatility is essential for achieving premium returns and should not be feared.
• Market corrections are normal; understanding the historical context can prevent panic.
• Recessions occur regularly and should be viewed as part of the economic cycle.
• Long-term investment strategies outperform attempts to time the market.
• Warren Buffett's approach underscores the importance of investing in quality businesses.

ABOUT THE HOST: Jonathan Blau 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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In this episode, Jonathan sits down with New York State Assemblyman Steve Stern, who is proud to serve his fourth term representing the 10th Assembly District. Since his election in 2018, Assemblyman Stern has championed critical legislation to safeguard groundwater, support veterans, protect children’s health, and combat the opioid epidemic. Together, Jonathan and Steve explore the intersection of wealth, policy, and service—discussing how financial well-being extends beyond numbers to impact communities, legislation, and the lives of those who have sacrificed for our country. Tune in for a compelling conversation that redefines what it means to be genuinely "crazy wealthy."

 IN THIS EPISODE:

• (00:00) Introduction
• (01:30) Steve shares his professional background and his interest in Elder Law, Veterans Affairs and Estate Planning in the Long Island Community
• (07:45) How Steve’s interest in elder law began
• (13:17) Money was never the motivation for Steve’s career 
• (18:21) Steve shares his childhood
• (23:45) Jonathan discusses society in the ’50s, ’60s, and ’70s
• (27:08) Steve leaves listeners with a final word about veterans
• (31:16) Amy joins Jonathan to recap this episode!

KEY TAKEAWAYS:

• As a New York State Assemblyman, Stern has recently been appointed chairman of the State Assembly Committee on Veterans Affairs. This role is particularly significant given Long Island's large veteran population, making it his personal and community-driven priority.
• Many, especially younger generations, expect instant success. But true success comes from patience, persistence, and passion—chasing money alone leads to dissatisfaction.
• Higher incomes don’t guarantee happiness—social media and rising material expectations fuel dissatisfaction. True happiness comes from contentment and defining “enough,” not chasing more.

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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 episodes, Jonathan unpacks common financial missteps and the behavioral biases that often trip up even the savviest investors. Today's episode dives deep into the dangers of “Performance Chasing.” He'll explore the importance of proper diversification beyond simply owning multiple funds with similar holdings and discuss overcoming biases like confirmation and recency bias to make informed investment decisions.

IN THIS EPISODE:

• [1:15] Jonathan defines “Performance Chasing” and provides examples of why investors do it
• [5:06] Example of Performance Chasing documented by Morningstar and becoming a wealth destroyer
• [7:44] The importance of staying diversified 
• [12:10] Good advice for investors on the long-term perspective 
• [12:54] Jonathan gives an example of “DINO diversification” and “true diversification”

KEY TAKEAWAYS:

• Investing heavily in assets that have recently performed well can be risky. This "performance chasing" can lead to concentrated portfolios and significant losses when those assets decline. History provides numerous examples, such as the dot-com bubble, where investors suffered losses by heavily concentrating their investments on a few high-flying stocks.
• Diversification is essential for long-term investment success. However, avoiding "DINO" (Diversification In Name Only) portfolios is crucial, where multiple funds hold significant exposure to the same assets. Proper diversification requires investing across various asset classes, sectors, and investment styles.
• Successful investing emphasizes long-term goals and avoids short-term speculation. The power of compounding demonstrates the importance of consistent investing in a diversified portfolio over the long term. Making investment decisions based solely on short-term market trends and recent performance can harm long-term financial success.

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In this episode, Jonathan sits down with Chadwick Ford, a special ops veteran and founder of Elysium Aero, to explore the striking parallels between military strategy and financial planning. Chad shares his distinguished military background and reveals how risk assessment, adaptability, and mission-focused discipline apply just as much to the battlefield as they do to building long-term financial security. They dive into the nuances of known and unknown risks, the importance of learning from history rather than just knowing it, and the necessity of removing emotions from decision-making. Chad discusses how trust in the architect of a plan—whether in combat or wealth management—can be the difference between failure and success. This conversation is a must-listen for those looking to approach their financial future with the same strategic precision as an elite military operation.

 IN THIS EPISODE:

• [1:41] Chad shares his distinguished military background, and he compares financial investing with a deployed environment
• [12:30] Risk management, known and unknown, known and the known unknown and the unknown-unknown when executing strategic planning
• [18:00] Not just knowing history but learning from it
• [26:23] Training to stay on mission and removing emotions from decision making plus trusting the architect of the plan
• [35:44] Chad talks about a couple of close calls, and Jonathan makes his financial comparisons
• [43:14] Chad shares the firm he founded, Elysium Aero and describes its purpose
• [45:47] Jon and Amy recap this episode!

KEY TAKEAWAYS:

• Military and financial planning share strategic parallels. Both require mission-oriented planning, risk assessment, and disciplined decision-making to navigate uncertainties and achieve long-term success.
• Risk management is essential. As reconnaissance reduces battlefield uncertainty, financial tools like insurance and diversification safeguard against unexpected setbacks.
• Success comes from adaptability. Understanding history, assessing risks, and evolving strategies are key to long-term financial and warfare success.

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