Today's episode might blow your mind, and I don't say that every episode, and I try never to be clickbaity or cringe when I do these episodes because I watch a lot of YouTube.

I listen to a lot of podcasts, and I hate when I hear that.

But I did not learn what I'm about to be explaining today until I was in my CFP curriculum to become a certified financial planner.

And I was an undergrad in a finance

department.

I went to grad school.

I got my MBA, and I still did not know any of this until I actually was diving deep into

the math to understand the value of what's called asset location.

That's what today is all about.

I have one question for you before I begin. If you don't mind, let me know. Have you heard of asset location? So you can choose to email me and just literally say, yep, I've heard of it or no, I have not. You can also just drop a comment on YouTube, no matter where you're listening, whether it be the podcast app or YouTube, I'm able to see all of it. But I'm curious if this is the type of content that resonates

with you because I view it as my role to tell you things you otherwise couldn't have known,

not due to competency, but because you just don't see it. You're not doing it all day,

every day. And this blew my client's mind. So I'm going to go over asset location today. My name is Ari. I'm a CFP, and that is not why you should listen to me. Hopefully the content resonates, but I'll joke and say, how many doctors would you never let touch your body? And there's probably a lot of them that you may have come across in your life. I know there's many that I would not want to operate on me, but I've also had surgeons do incredible work. So I'm so grateful that they exist, because if not, I would not be able to play soccer or be nearly pain-free. So I am grateful. But I'm a CFP, and I know other CFPs I would never let manage a dime of my money. So I hope you listen to this

and resonate with the style and approach I take. Now, I'm also the host, as you know, of this podcast, early retirement, and I am the chief growth officer at Rout Financial. So if you listen to this and go, look, I can tell you like this stuff, but oh my gosh, that went over my head, or I just cannot grasp what you just said, but I can actually

see the value. Well, that's what we specialize in. Now, hopefully you do fully understand it, and that is my

goal. So we're going to go into an example now. So asset location, the first time I actually

learned this, my mind was blown, and I went to my client, and I was explaining it to them,

and at this point, they had heard me talk about asset allocation a lot.

And they know I don't like risk tolerance questionnaires.

So the fun story I'm going to tell you today before going through the example is I had a client that was close to joining and then they eventually said, hey, before we officially join Root, I just have a concern I'd like to share

with you. I said, I'm a very transparent person. I actually like hearing concerns, and when you don't bring them up, that makes me more anxious, so please do. And they said, well, you haven't asked me my risk tolerance between like one to 10. And normally that's what I think you people do, right? So I kind of laughed. I said, let's do it right now. And they said, okay, I said, so what is

yours? And they said, well, I'm about an eight. I said, okay, what about your spouse? Let me ask them. They said, well, I'm about a two. I go, okay, let's pretend markets went like this. And I showed him an exact opposite. I said, what is your risk tolerance now? One person moved from an eight to a four, and the other person moved from a two to about a negative 2,000.

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