Preview:

As we move past Memorial Day and into the summer, we’re excited to welcome back Lee Hyder of Lee Hyder & Associates today to reflect on where the market currently stands and the investing strategies pilots should be focused on for long-term success.

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More About This Episode:

We always appreciate the perspective Lee brings to the show and wanted to get his deep thoughts on a few different topics. During this episode, he shares his insights on diversification, the importance of staying in the market, and the pitfalls of emotional investing. Plus, we dive into some amusing personal anecdotes and Lee’s take on Bitcoin.

 

Here’s some of what we discuss in this episode:

0:00 – Intro

1:17 – Memorial Day recap

7:41 – What’s going on with the market

11:17 – Investing inefficiencies

15:13 – Recent flight experience

19:13 – Secrets to building long-term wealth

27:26 – What makes investors unhappy?

31:40 – Bitcoin

 

Resources:

Retire Pilots – https://retirepilots.com

Get your FREE Retirement Toolkit – https://bit.ly/3ZmZsaX

Pilot Tax – https://pilot-tax.com/

The Pilot’s Advisor Podcast is also on video. Watch & Subscribe on YouTube: https://bit.ly/3EIEBW2

Connect with Pilot-Tax: https://pilot-tax.com/

 

Episode Transcription:

(Note, this is an automated transcription. Please forgive any errors.)

Ryan Fleming  00:04

Welcome to another edition of the pilot’s advisor podcast. You know, every once in a while we have to do a non professional podcast and when I want to do that I bring in my good friend Lee hider from, from Sandusky, Ohio. He hangs out on the lake house up there by Cedar Point. If any of you guys have ever been to northern Ohio, it’s one of the actually one of the best amusement parks I’ve ever been to. I went there as a kid and it was amazing. What do you think about a Cedar Point, Lee? Well, first

 

Lee Hyder  00:34

of all, I’ve got to correct you. It’s not an amusement park and amusement park is like cute little merry go rounds and bumper cars. This is known as the number one roller coaster park in the world. So if you are a roller coaster enthusiast, this is the place you need to be. And as you can tell by my full Hawaiian kind of tropical shirt, that’s kind of the vibe we get here in Sandusky on Lake Erie. Only

 

Ryan Fleming  00:58

three months out of the year when it’s actually warmer in Ohio. Otherwise, you need to have three jackets and mittens, hats, you name it.

 

Lee Hyder  01:07

And a very well operating snowblower for sure.

 

Ryan Fleming  01:12

Well, Lee, thanks for coming on the show. We appreciate it. You’re always a bundle of fun. We get to talk about stuff that grinds our gears as advisors. I was telling you the other day how much easier this job is when the markets actually cooperating. So right now, the markets doing really well. We just finished up Memorial Day weekend, which I hope you had a wonderful weekend with friends would you do this weekend.

 

Lee Hyder  01:37

You know, living on the beach, we spent kind of you know, one of the days in a hammock on a chair with the barbecue going in the background. One of the other days we took out the jet skis and the boat and just kind of had a all around relaxing, fun family. Vacation. Although it’s not really a vacation. It’s kind of our lifestyle out here on the beach. Well, I’m

 

Ryan Fleming  01:59

pretty jealous, I’m pretty jealous. We actually had a, this house near us was having a wedding reception. And they they hired a live band. And so they let us know that hey, we’re having a live band at 730 on Friday night. And so what we did is we all kind of set up shop out there and listen to the live band.

 

Lee Hyder  02:17

So basically you crashed the wedding just sitting in your lawn chairs, two or three houses away. Yeah, exactly.

 

Ryan Fleming  02:23

But we kind of got we got an informal invite that that’s what was going on. So it worked out. Well. It was it was a good time, and the band was great. We enjoyed it. And of course, I feel like a lot of people don’t understand what Memorial Day is really about because I get a lot of people that will text me and say, Hey, thank you for your service, you know, how you and Carrie, thank you for what you’ve done for our country. And you know, that’s what Veterans Day is about. Memorial Day is about those that gave the ultimate sacrifice those that did whatever that you know, they gave the ultimate sacrifice so that you and I can sit around here and do a podcast and say whatever we want to say. Or you know, actually hang out on the beach and take jet skis out and have boats and stuff like that, that we do we enjoy as Americans. Yeah, no,

 

Lee Hyder  03:07

no sad, sadly enough. It’s not only Memorial Day and Veterans Day, but you know, I guess all of our holidays have become so commercialized, we’ve really forgotten really, what what’s behind the holiday. And and you’re right, I mean, people just don’t stop and think they don’t stop and and show their appreciation. Because appreciation is due not only to people like you for Veterans Day, but for like you said the countless families that have been affected by by one of their loved ones actually giving their life so that we can have the wonderful fun holidays and roller coaster weekends and all those things. Absolutely.

 

Ryan Fleming  03:41

Yeah. And it’s you know, too many people just look at it as a, Hey, that’s a three day weekend, or, Hey, that’s a four day weekend. And, hey, we’re gonna barbecue and have fun versus truly taking a moment to realize the sacrifices that we’ve made. Or excuse me that those before us have made so that we can live in this great country. Because as much as I hate things right now, and as much as I can’t stand the politics right now, we still do live in the greatest country in the world. And you just got to travel around a little bit to realize that. So anyway, enough about that. We don’t want to be somber, we want to you know, talk about good things and be positive. But actually, I want to complain about something else, you ready for me to complain about something else?

 

Lee Hyder  04:20

I’m always ready for one of your complaints. So,

 

Ryan Fleming  04:23

so I send out retirement toolkits to, you know, airline pilot prospects, and I send them a couple of my books and you know, some other stuff in this packet that I send out in the retirement toolkit. So I ordered 250 of these of one of the books, okay, 250 of them. And in the toolkit, I put two different books in there. Okay. And I just found out because I never checked the contents of these books. I just order more from Amazon and assume that you know, they haven’t just changed what they’re doing. Well come to find out that of those 250 that I ordered. It was the exact Same thing in both books, even though they had different covers. So they screwed up the printing that bad. And you know, of course, I started sending these out and I finally had somebody open them up and go, Hey, this is the same book, even though it has a different color. So I called Amazon. And once you believe it, because it was over 30 days, and of course, you know, I get these and it takes a while to send them out. I you know, I don’t check the books anymore. Because it’s over 30 days, they basically told me, you know, tough, we can’t do anything about it. Wow.

 

Lee Hyder  05:31

I mean, is there nobody on your end that that kind of does? I mean, what’s what’s the mistake on Amazon? Or? Or is there a 100%?

 

Ryan Fleming  05:39

Amazon, where I ordered them from? I went back and looked to see paid, you know, was it screwed up online? You know, where that where I have my book published, because you know, I’ve been doing this for a while. And no, it’s perfectly fine there somehow, someway. They just screwed it up, and they’re not going to do anything about it. It’s over 30 days,

 

Lee Hyder  05:58

I wish you would have told me this before, because when Jeff and his family was at the festivities on our beach, I probably could have had Jeff, you know, reach out to the distribution center and, and fix that for you. So just, you know, be warned in the future that if you ever have any problems with Amazon, just reach out to me and I’ll take care of that for

 

Ryan Fleming  06:14

you. Yeah. And for those that aren’t picking up at least putting down what is Jeff’s last name that was hanging out with you? I think that’s bases, right. So okay, yeah, well, talk to Jeff for me, because I’m really not happy with them right now. They told me to pound sand,

 

Lee Hyder  06:27

you know, and I wasn’t happy with a major that big boat he brought really blocked our view from the sunset. So I mean, it was it was just, you know, just didn’t work out as well as we would have hoped. For

 

Ryan Fleming  06:36

our listeners, if you have not met Mr. hider. Before. He’s always always making stuff up like this, just you know, just running with the he agreed yesterday to get on another podcast with me. And then all morning long, he kept talking about August 17. That to make sure that that was the date that we’re doing the podcast, every time I sent him another text or a zoom invite. He said, Oh, this is for next year, right? Or this is for tomorrow? What day? Are we doing this? Just just messing with me? Because that’s what he does?

 

Lee Hyder  07:06

Well, I just just got to be sure that you understand. I’m a very, very busy man. And you know, you’re very fortunate to, to have me on this podcast today.

 

Ryan Fleming  07:12

Well, that’s why I pay big money to have you on the podcast. Absolutely. And I do appreciate it. Yeah, still waiting on that first check, right?

 

Lee Hyder  07:20

Waiting on that first check. And I’m gonna frame it. I’m not even going to cash it because we both know what would happen if I tried.

 

Ryan Fleming  07:27

Well, there was a lot of zeros on that check that I wrote you. I don’t know why you haven’t gotten it yet. But yeah, you might not want to catch it.

 

Lee Hyder  07:33

There you go. Absolutely. So So what do you want to talk about? On a serious note today, if

 

Ryan Fleming  07:39

I sometimes I just don’t like being serious. But Lee, what do you think’s going on with the market right now? What’s what’s what’s Lee hiders overall impression of what’s going on with the market today?

 

Lee Hyder  07:48

You know, you know, that’s really a powerful question. And I mean, that because the first question that anybody has to ask themselves, when you say, what do you think’s going on with the market? How do you define the market? You know, what is the market and I think a lot of people make very dangerous assumptions, you know, that the market is simply the s&p or the market is some of the alphabet companies. And you know, it’s a worldwide market. So, you know, first of all, I think the markets doing great, you know, and I think you need to be in the market, and if any of your listeners are not in the market today, I think they need to reach out to you and reexamine why they’re sitting on the sidelines. Because there are incredible opportunities to be had. And I just don’t want anybody to miss out on those.

 

Ryan Fleming  08:29

Well, I firmly believe that, you know, owning equities all around the world is is the biggest wealth creation tool known to mankind. However, I agree with you, most individuals don’t understand the market at all, they have a very myopic view of what the market is just what they see on TV just s&p 500 Just us large cap stocks, when there’s so much more out there. And you do you want to diversify your portfolio and lower your risk by owning companies all around the world, you know, owning small owning value. But yeah, most most investors don’t understand that. So I appreciate you bringing that up, Lee. And another thing that’s a little bit scary about the s&p Lately, it’s finally starting to spread out a little bit more, but for the longest time, it’s been totally held up by only a few companies. I mean, I would say for the last three or four years, the s&p has been held up by only a few companies.

 

Lee Hyder  09:22

Yeah, I mean, I mean, I would agree, I mean, all the alphabet companies that everybody knows of has really been driving the markets for a while. But again, that that’s why you need to be diversified. And sadly, most people don’t really know how to measure diversification. They look on page one of their statement they get from whoever their custodian is, and they see those pretty slices of pies represented by different colors. And they really think they’re diversified. And the truth is, when you and I maybe do an analysis of the portfolio, we don’t nearly find the diversification that they may think they have. We’ve got a lot of overlapping positions that are just simply dressed up in another holding position. So you really got to be diversified in the market. And again, as you say, the s&p is expanding, you know, certainly we’re getting broad range of, of growth across the board more than just the alphabet company. So I mean, I look for for, and again, I don’t have a crystal ball, but I look for a interesting second half of the year, I think if I had to give anybody any predictions, and don’t hold me to them, but I think we’re going to experience a volatility up and down. But I think at the end of the year, and that’s how you measure it, nobody should be measuring anything on a day to day basis. But I think at the end of the year, we’re going to look back at 2024. And I think we’re going to be very, very happy. You know, if you’re an equity investor,

 

Ryan Fleming  10:36

100%, you can’t be sitting on the sidelines. You know, when the market, the market moves fast. And you know, you’re sitting on the sidelines, trying to time the market, we’ve proven via numbers, just the facts that people that do that end up hurting themselves. They’ll be sitting on the sidelines at the wrong time, and probably never catch up.

 

Lee Hyder  10:54

I mean, I mean, look, you look, you’re an athlete, and, and you’ve been in many, many big games, man, coach. Yeah, but yeah, but but I think you realize, as an athlete, that you don’t win the game in the locker room, you know, you may put together a strategy in the locker room, but you’ve got to be on the field, to actually score the touchdown, and you got to be in the game, you got to be in the equity markets to be able to achieve market returns.

 

Ryan Fleming  11:14

Absolutely, absolutely not. And this is why I enjoy talking to Lee on occasion where we really can’t talk about the market or talk about things we deal with in talking to clients. Because the other thing that I find, it’s really tough. And I do want to talk about the overlap that you brought up. I don’t know how many times I analyze a portfolio, where they have us large cap stocks and an ETF then they own the s&p 500 in a Schwab ETF, and then they got a fidelity ETF. That’s the s&p 500. Again, where it looks like you might have some diversification because you have 10 or 12, ETFs. But they’re all doing the exact same thing. It’s actually very inefficient. And

 

Lee Hyder  11:52

not only that, I think that’s kind of a problem for investors that are what I respectively called do it yourselfers, you know, they’re doing a lot of research on their own. But it’s very, very hard, unless somebody has the kind of tools that you and I have that are very, very expensive, you know, to have to really be able to break down into a portfolio to determine, you know, what is the the overlap from one mutual fund to another from one ETF to another? And you know, you may think you’re diversified, like I said, because you’ve got a very, very pretty pie chart on page one. But how many of those slices actually owned? So to call the same ingredients, but just in a different wrapper? Yeah,

 

Ryan Fleming  12:29

for sure. What about another thing that I think it’s always good to talk about? You talked about being in the market, okay? Sure. Many times, it’s always a good time to buy, right, it’s always a good time to buy. But of course, when the market has a 20% pullback I tell, I tell investors all the time, this is a great time to buy in, things are 20 30% off, you know, we make most of our money in a down market, we just don’t realize it. But the emotional investor doesn’t want anything to do with the market, then they wait till times, like right now where we have all time highs, it’s on TV, everybody’s talking about the market, and they want to buy in now. And I find that, that the uneducated investor, lets emotion drive so much of their decision making where when the market is at an all time highs, suddenly everybody has money to invest in the market. You

 

Lee Hyder  13:19

know, and this may sound like a maybe a self serving statement, and I don’t really want it to be because I think Vanguard did a study. But this is the value that that an advisor really brings to the table. It’s the discipline, you know, an advisor earns his money, you know, when the market is, is going through volatility, you know, not when the market is screaming at a 20 or 30% return. You know, it’s like a fireman, you know, you drive past a firehouse, and you see the guys playing basketball or or washing their trucks and you kind of say to yourself, Man, what a what a great job they’ve got. But in essence, they’re getting paid to get up at three o’clock in the morning and run into the burning building when everybody’s running out. And it really is that same kind of metaphor, you know, in the market. A good advisor will help the people understand that when everybody’s running for an exit, that is the best time to sweep in and pick up some great bargains and be able to achieve some of those returns you’re hoping for in the in the equity market side.

 

Ryan Fleming  14:12

Well, and you know that people talk about blood in the streets when there’s blood in the streets. That’s when you make a lot of money or you make those buys I know you’ve probably heard that before when when there’s blood in the streets of the market or on Wall Street. Yeah, I never heard of that one.

 

Lee Hyder  14:27

I think you told me that was your statement that you coined

 

Ryan Fleming  14:30

that are so good. I just made that up. I don’t know. I just remember something like that. You trade you trade market or something along those lines. You’re not supposed to make me look bad on my own podcast. Lee. Come on.

 

Lee Hyder  14:39

I’m making you look good, man. You You got the true blue in the back. You got the Jets. You got the helmets. I mean, I mean, you look like the real deal.

 

Ryan Fleming  14:47

Yeah, what do you do you have any advice for our airline pilot listeners out there?

 

Lee Hyder  14:53

You know, I guess probably putting you on the spot here. Come on. Yeah, I would probably advise them to you know, make Should the landings with the takeoffs and everything ought to be good.

 

Ryan Fleming  15:02

That is, that’s actually good advice. You know, shiny side up is always, always good advice.

 

Lee Hyder  15:08

Yeah, but that’s pretty technical. You got to break that down for your, your listeners here.

 

Ryan Fleming  15:13

Some Marines, which I always have to talk a little bit slower for our marine pilots

 

Lee Hyder  15:17

shiny side up. I

 

Ryan Fleming  15:18

like that. Yeah. Okay,

 

Lee Hyder  15:20

so speaking about that, I gotta tell you, I was flying back from Lackland Air Force Base, because, you know, at Lackland Lackland. See, sorry about that. There you go. And, you know, my stepson just graduated bootcamp from the Air Force Academy. And when we came back, we actually sat on a run and have

 

Ryan Fleming  15:36

to stop you again, there, Lee. It’s not the Air Force Academy, he graduated training from the Air Force at Lackland Air Force Base.

 

Lee Hyder  15:44

That’s why I’ve got you on this podcast to keep me on the straight and make stuff up, go ahead to speaking about making things up. And I’ll talk about a competitor of yours United Airlines, which I know is not a competitor of yours. But I sat on the runway for three and a half hours only to hear the pilot come on board and say, I got good news and bad news. The bad news is I’ve just timed out. So we’re going to have to go back to the gate. But the good news is we have another crew coming in that will be able to get you where you need to go to. But the caveat is they’re coming in from Mexico. So we’re going to have a little wait. So that was the first time I actually got stranded for three and a half hours on on the runway. So it was kind of interesting. Well,

 

Ryan Fleming  16:21

and I’ve never been more miserable in my life than being in situations like that, where you’re stuck on an airplane and I don’t really fit on them anyway. You know, where you’re in some seat like this. Three and a half hours later, you haven’t moved anywhere. I actually do remember you complaining on Facebook during that trip home because it took so long to get back to to Cleveland? Well,

 

Lee Hyder  16:41

I don’t think I was really complaining. I think I was just giving an update for all of my friends and family.

 

Ryan Fleming  16:47

You know, I just wanted to you know, Yeah, cuz everybody’s wondering, yeah, how you got everybody,

 

Lee Hyder  16:51

everybody? Everybody’s always worried about us? Absolutely. Even right now, I’ve got a good friend in Italy, that his first post is this is not for Lee.

 

Ryan Fleming  17:00

I’ve been seeing that this is another advisor. He’s traveling in Italy right now. And the best part that I love, and I’m sorry, you know, Newark, Newark, New Jersey is not the prettiest of towns, many pilots have to fly through there. I try to avoid it like the plague. But this, this particular advisor keeps posting that he’s in Newark, New Jersey. And then he has these beautiful countryside views, ocean views from Italy. You know, it’s very obvious that it’s not Newark. But he’s doing that to be a smartass and other smartass, but I actually actually think that’s pretty funny.

 

Lee Hyder  17:34

No, that is funny. We used to Smurfette a couple years ago, we were sitting in Arkansas somewhere fishing. And we were actually in the lodge. And I think it was during the soccer tournament, you know, the World Cup. And for like three days, we just kept basically posting because people don’t realize, you know, you can go to check in and Facebook, and you can actually pick anywhere you want to go, you know, so when we were posting, you know, you know, we’re at the World Cup and Tokyo the next day, you know, we’re at the World Cup in Rome. And I mean, literally people were just going, Wow, how expensive is that to be flying around? So we’re

 

Ryan Fleming  18:06

traveling all over? Yeah, for

 

Lee Hyder  18:07

all of your listeners out there. You know, if you want to play with your friends and family, you know, next time you’re posting something just kind of post check in from an exotic place you’ve never been before and just look at your inbox start filling up.

 

Ryan Fleming  18:19

Well, you you recently posted something online that I took advantage of because I thought it was funny. And it was how you refinanced your house, your home 20 year home mortgage into a student loan. You liked it? Yeah, I thought that was funny, because

 

Lee Hyder  18:35

now it’s being forgiven. And I love it one on one. And I want to thank everybody out there further, you know, you know, helping in getting my house paid off much quicker than a bank would have allowed.

 

Ryan Fleming  18:45

That’s That’s some great financial advice. I thought it was wonderful. I decided to share it as well. We’ll try not to talk about politics, because we could go down that path that will be upsetting. But I did think that was rather humorous. And I wanted to enjoy that as well.

 

Lee Hyder  19:00

Like, I can’t take total credit for that. I kind of stole that from somebody else. But you know, I think they say if you if you if you post something the first time you have snow stole it, you’d be posted the second time, then it’s yours. Yeah.

 

Ryan Fleming  19:10

Okay. I’ll really, how many years? Have you been a financial advisor now?

 

Lee Hyder  19:15

Um, you know, it’s really amazing when I when I just wonder how the years have kind of passed, but I’ve been doing this for almost 33 years now.

 

Ryan Fleming  19:22

Wow, longtime in your 33 years. And if you were to look back or give advice to somebody in their 20s or 30s. And just how do you build long term wealth? What are some of the secrets because, you know, we always talk talk about the rules to investing and we’re supposed to teach our clients to not make mistakes. But what do you think some of the biggest factors to build that long term wealth or what advice would you give to that young investor so that they could get to 50 or 60 or in retirement and be in a really really good position where they didn’t have to worry so much about their their income going forward?

 

Lee Hyder  19:59

You There’s a couple of things. Number one, investing is a habit. And you know, you can’t wait until you have what you think is enough money to invest. You know, so one of the things I kind of do when I’m meeting with clients, and I’m even meeting maybe with some of their young children, and people that really have not started and they feel bad, I say, you know, one of the little games that I play with people, and I do this myself, even to this day, is I never carry change in my pocket. And I never give a penny nickel dime or quarter to a cashier. So if I’m going to care, if I’m going to standing next to a cashier, and I bought something, and it’s $1.03, I’m going to give $2 to the cashier, you know, now I’m going to have all that change in my pocket. And when I come home, every night, I always put away my nickels, dimes, quarters and pennies. And you would be surprised just that little stupid thing that you could teach your grandchildren, your children, you know, that can be seven $800 $1,000 in a year. Now, that’s obviously not a lot of money for the kind of listeners we’re talking to. But it is a great message for the listeners to help their grandchildren just start saving, then I tell people, which is a fact that if you’re not investing, you know, when you’re 30, you know, making $30,000 You’re not going to invest when you’re, you know, 50 you know, making $150,000. So investing is number one, a habit. And I always tell people, it’s it can be painful, and it really should be painful. Because you get to choose your financial pain, you either kind of put maybe more money in the in the market and invest in your 401 K’s your IRAs today, more money that maybe you think you can afford to do to eliminate the pain down the road as you retire. Or you simply don’t put money in today, and you wake up down the road and then you have pain for the rest of your life because you can’t retire. So investing is number one, it’s a choice. And number two, it’s a habit. And number three, it’s it’s kind of like a charity but you are the charity you want to give until it hurts.

 

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Ryan Fleming  23:01

See, and I’ve had a different relationship with investing. Pilots are really really good at procrastinating. So I talked a lot of my clients about forced discipline. Sure. And I don’t care if it’s 50 bucks a month or $5,000 a month, but you got to set something where it’s automatically coming out of your checking account. And going into an investment vehicle whether that is a retirement vehicle or just a taxable investment account. And only don’t ever shut that off, only bump it up because it’s paying yourself first. It’s dollar cost averaging. And the biggest factor with investing is the time the time factor, that compounding interest over time is huge. I wish I would have been a better investor in my 20s. Because if I was a better investor in my 20s, I’d be in a totally different position today because of that time factor. And one of the other things I always say is, you know what, what’s 10% of $100,000? Li?

 

Lee Hyder  23:58

Let me just 3500. Right? How’s my man?

 

Ryan Fleming  24:02

So when I when I think about that, and I’m only using 10% Simply because it’s easy math. But if I had $100,000 invested, and I made 10% off that money, that’d be $10,000 that I made that year or that year for doing nothing, just letting my money work for me. Right. So I think that sounds great. But what’s 10% Of the million, the big number that’s $100,000 Within one year, and then it compounds. And so what I think about that is it’s called the snowball effect. Okay? It takes a long time to get to $100,000 saved or invested. It takes a long time to get to a million okay? But the bigger the snowball you make the earlier in your life. Then 2 million comes really fast because of that compounding interest. So the earlier you build that snowball, by the time you get in your 50s and 60s if you’ve done it right, you’re you you you’re in a power position at that point because of that compounding interest that 10% of whatever portfolio you buy. Note is spitting out a lot of money every single year.

 

Lee Hyder  25:03

Absolutely. And like I say, Give till it hurts, you know, maybe 10%, maybe it’s 15%. You know, but the bottom line is, yeah, it’s got to be an automatic pilot, just like maybe your utilities automatically come out of your checking account, you want that investment account to be funded automatically. So you don’t have to think about it.

 

Ryan Fleming  25:19

And that’s where you pay yourself. First, you should be paying yourself before you even pay the utility bill. Now, obviously, I’m not saying don’t pay the utility bill. But in order of importance for your financial future, paying yourself first would be the better way to go. So I don’t know, I just when I start seeing that engine working. And you see it happened over the years, it’s pretty powerful. And I, you know, I wish I could stress the importance of it, I have a few pilot clients, they’re young Delta pilots. And it’s really awesome, because they’re at a legacy airline already at like, 28 years old. Okay. And normally, historically, you didn’t get onto a big legacy airline until your, like, late 30s, early 40s, was what it used to be, because you had to fly all these hours to get hired, well, there’s been such a hiring boom, where these 28 year olds are making really good money in their 20s. And they’re being very, very aggressive of putting this money away. And I just know that they’re going to live this amazing lifestyle, because they’re being aggressive early. And I you know, I wish everyone could see the power of that. Because the longer you wait, you know, those those investors that wait till they’re in their late 40s, early 50s, and they go, Oh, crap, I need to start saving for retirement, the amount that they have to put away is so much the pain is so much more at that point, because the time factor is gone,

 

Lee Hyder  26:36

you know, and it goes and speaks again, you know, to the power of an advisor, you know, so often I would I would meet people that, you know, would come into my office, you know, you know, kind of kind of right after maybe the 2008 crash, and what have you, people that didn’t have advisors, and they were telling me that, Oh, they’ve stopped investing in the market, because, you know, 2008, and they were worried and what have you, you know, so the real power of an investor, you know, working with an advisor is number one, you set up a plan, you set up that automatic direct withdrawal from an account as a direct deposit into one of your investment accounts. And when the market starts going sideways, the discipline that you may not have as an investor due to the fear and anxiety and the emotional turmoil, you know, a good financial advisor can help you sidestep that so you continue to be investing in your future.

 

Ryan Fleming  27:21

Good, good news. I mean, it’s, that’s a great message Lee, I think it’s valuable for us talking to each other back and forth, for our listeners out there to see a different mindset or some of the conversations we have with our clients on a day to day basis. With that being said, I want to ask you one more question before I let you guys let our listeners go, I always try to be mindful their time and not have a podcast that goes on for an hour trying to stay mindful of my time, while I’m paying you for your time. Oh, okay. So what what are some of the, like, biggest issues you deal with, with unhappy investors unhappy clients are, are those that are watching the market too much, you know, that are constantly calling you or, or, you know, the market goes up, the market goes down, and they’re that that person that’s watching way too closely?

 

Lee Hyder  28:12

Well, the first thing I tell them is, you know, whenever you make any investment into the market, I mean, it is a long, it should be a long term process. And the long term process is should not be driven by nor necessarily evaluated on day to day movements of the market, nor week to week movements, or maybe even month to month movements. So I think I think for the investors out there, and some of the some of the challenges we get when we start with brand new clients that have not been clients of our firm, is they kind of tell me how they monitored their investments in the past and, and what they did when the market moved. So we just try to get people to really understand that, you know, you’re investing for your future and your future is, is down the road. And the philosophy that you put into effect today. And the strategies you put into today should not be necessarily affected or alter just due to day to day movements in the market. So the bottom line is we try to get people you know, away from the TV screens away from the newsletters away from looking at their stock portfolio on a day to day basis and you know, kind of enjoy their life and enjoy their family, the market will take care of itself.

 

Ryan Fleming  29:19

I find that the investors that do that, that are watching Fox Business every single day that are looking at their stock portfolios that are very emotional with the day to day swings of the market. My experience has been those investors that put that much more time in and worrying about it tend to have a lot less money. And I think it’s because of them making mistakes in the past. And just like you said it needs to be long term, unemotional and disciplined. And I find that that emotional investor has less money because they’ve they’ve made those emotional mistakes before they’ve let emotions drive their actions versus staying in the market knowing that we’ve engineered a portfolio for them. That’s going to happen In all the ups and downs of the market, have you seen something similar when you look at your clients? Yeah, I

 

Lee Hyder  30:04

mean, you know, I hate to admit it, but I think we all fall prey to this to one degree or another, you know, we are a comparative society. You know, we look at somebody’s car in the parking lot, we look at the house they live in, we look at the vacations they take where their children go to school. And, you know, we look, you know, we look at our friend’s portfolios, we look at what’s what’s, what are the returns on TV, hey, my returns are not as good as the ones on TV, maybe I should sell this and maybe I should buy that, or we always hear when there’s turmoil. What about gold? Or what about silver? Or what about currencies? So I agree that the people that end up in trouble are number one, the people that don’t have a plan, you know, if you have a plan, you’re going to be okay, now, a good plan is going to have a contingency, you know, if there’s a roadblock, I got a detour, I know where I’m going. But the people that just are so called buying investments, because you know, they think they are good, they’re going down to the Walmart aisle, so to speak of what to put in their financial shopping cart, is not a way to build a long term portfolio, nor a way to kind of find yourself emotionally satisfied with how you’re doing. So I think people just want to tune out, you know, I mean, if they have trust, and it goes back to the fundamental thing, if you have trust in your adviser, if he or she knows exactly what you’re trying to do, if you built a plan that you both understand, you’re gonna you’re gonna revisit that plan, you’re gonna make detours along the way, but you don’t want to sabotage your financial future by making quick emotional decisions.

 

Ryan Fleming  31:36

That’s greatly thank you for sharing that. I got one other question that just just started thinking about AI.

 

Lee Hyder  31:41

And I have a question for you before we finish off, okay, okay.

 

Ryan Fleming  31:46

Right now, people are talking about Bitcoin or new new video, whatever it is, but I want to talk about Bitcoin specifically. Yeah, of course, I wish I bought into Bitcoin, you know, 10 years ago, or what have you, we didn’t know that it still be here, I think it’s here to stay finally, but at the same time, I still have trouble. Number one ever leveraging much of your investment portfolio in one entity, but at the same time with Bitcoin, I’m still there going, what do I own? I don’t feel like I own anything. And I was wondering how you handle questions about Bitcoin? Or what you think about the long term prognosis of something like Bitcoin as an advisor? The

 

Lee Hyder  32:23

challenge that I had with Bitcoin, and maybe it goes against public sentiment, but public sentiment, I believe, is more emotional than academic, is there’s nothing really behind bitcoin, you know, when you buy a stock, I mean, if you really examine and if you pull the curtain back, what are you really buying, you know, if you look at a building, so to speak a factory, you know, I’m buying a brick in that particular building, I’m buying part of their trucks part of their inventory part of their intellectual property. And If by misfortune, that company went out of business, there is a genuine breakup value, assets could be sold, and investors would be able to get some return on their equity. So when you’re buying stocks, you’re actually buying something that you can hold something that has a tangible value, something that you can touch, you can feel, but when you buy bitcoin, you’re really buying nothing, you know, you’re buying the fact that you hope other people buy it. So it goes up in value, so that maybe one day you’ll be able to sell it for a profit. But if bitcoin vanished tomorrow, what do you have? Who do you call? Where do you go? So there is nothing behind what I respectfully say than nothing. It’s exciting, it makes great headlines, had you bought it 10 years ago, I mean, because look, there’s always a flash in the pan, you know, be a Bitcoin or anything else, there’s always something that is exciting. There’s always something that you can point to that if I put $1,000 in this, I’d have a 300 foot boat, my life would be very different. But that’s not investing. That’s speculating and gambling. And one of the things that we don’t do is we do not gambling we do not speculate with our clients money, we come to the table with an academic plan that is well thought out that has researched that we can point behind it. And so to me, bitcoins exciting. It’s always going to be on the front pages of headlines, but I just don’t think it is a good academic solid investment for people that want a plan for people that gamble, hop on a plane, go to Vegas, you not only get to gamble, but you get to have a great meal and a maybe a good show at the same time.

 

Ryan Fleming  34:22

Yeah, a couple cocktails for free for giving you giving them some of your money, right? Absolutely. Well, sometimes it’s easier to justify losing that $500 When you had a couple of free cocktails, right? Or

 

Lee Hyder  34:35

maybe you didn’t remember you lost those $500.

 

Ryan Fleming  34:39

Alright, Lee said before we close today on the podcast, I want to thank you for your time, but you said you had a question. I

 

Lee Hyder  34:45

got a question. Now again, everybody. Here we go. Everybody knows you’re this really? I mean, it hurts me to say but you must be a pretty smart guy to sit in the cockpit of a plane with all those buttons and all those crazy things and you got YouTube and you got all these cool things, but I’m Looking at my screen and I’ve got a beautiful colorful background I I’ve got a glowing tan I’ve got a blue shirt, but when I’m looking at your screen for some reason I see only black and white

 

Ryan Fleming  35:09

yeah I like it that way Lee I don’t know why I hate the the the way I look on a normal screen because I got like a red face red, you know? I don’t know. And I just I switched it to a black and white a while ago and I just kind of liked it. Well, let

 

Lee Hyder  35:25

me tell you the black and white is not helping your face any? Yeah, that was it. That was the plan

 

Ryan Fleming  35:32

you can only put so much lipstick on a pig, okay, and I need all the help I can get no different with me wearing a hat and you know trying to cover up however I can. I don’t like being in front of the camera like you. I thought you’re gonna bring up how amazing of an advisor I was because you taught me everything I thought you’re gonna go this guy is one of the most amazing advisors I’ve ever met. Because of course you know, you’ve mentored me for many years and taught me and I think really brought me along in this business and I thought you’re going to compliment me on that.

 

Lee Hyder  36:01

Well you know what, I will use this as an opportunity to tell all the listeners or viewers out there that all joking aside I mean if you’re really looking for an advisor it’s John Wright. I mean you can’t you can you can’t go wrong by plugging in John he’s got the great stuff for you. I

 

Ryan Fleming  36:18

think he’s just just saying the pilots advisor and that way that’s advisory

 

Lee Hyder  36:21

he’s got a great deal on Bitcoin and I think he’s got a buy one Bitcoin you get an ounce of gold at the same time. He’s got great things. But all joking aside, now you’ve you’ve you have really stepped up your game. And I think anybody that knows you either in the professional world or even outside the professional world knows that you’ve got a an amazing amount of integrity Metis massive intelligence and you’re doing some great things for all of your clients. Very, very proud of you and excited to be part of your, your podcast from time to time.

 

Ryan Fleming  36:47

Well, I didn’t know that was gonna come out. I didn’t pay him any money to say that. But I think that’s a great way to end this podcast. I appreciate that. We appreciate your time. I appreciate your kind words.

 

Lee Hyder  36:59

It’s probably a great it’s gonna be a great way for me to end my career too. At the same time I said to everybody over to you.

 

Ryan Fleming  37:04

Yeah, you can do that. Just send all your clients ever made the you know, they want to find a better way. Absolutely.

 

Lee Hyder  37:09

Or at least a prettier face. Absolutely. Absolutely. Black and white. Yeah. Well, Lee, as

 

Ryan Fleming  37:15

always appreciate your time. I get a lot of rave reviews when you’re on the podcast. So hopefully you’ll come back and be on the podcast again in the future. And I’ll let you get back out in that sunshine and enjoy the beach here. And you know, enjoy your life as your how what are you at seven? Oh, I’ll

 

Lee Hyder  37:32

be at very, you know, it feels like it I’m going to be 68 But you know, now that I said 68 I’m sure all of your your viewers out there going, man 68 This guy looks great. And I want to thank everybody because yeah, I feel great. And I do look pretty good for 68 Anyway, well,

 

Ryan Fleming  37:47

lots of energy. Lots of fun Lee Hyder Lehighton associates once again, thank you very much Lee for being on the podcast. For all our pilots out there fly safe. And I want to use Lee’s comment before what is it equal takeoffs and landings? Is

 

Lee Hyder  38:01

that what you said? Just be sure they equal the same Yeah. All right. Well, I

 

Ryan Fleming  38:04

think that’s good advice. Make sure they equal each other out there on takeoffs and landings. Everybody fly safe. We’ll talk to you soon. Thank you, Lee. Alrighty, stay well.