Style Drift Can Take You Off Course

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about what Style Drift is and how it can affect your portfolio. Listen to learn why this is important to you and why you should build your portfolio to support your life. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert and number one Amazon bestselling author, John Browning. John is the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copymailed right to your door. I'm Michael Delon, your host for the next few minutes as we chat with financial expert and business owner John Browning. John Browning, is your day going well for you? My Day is going fantastic. It's really been a great week actually, so that's good. We'll stay on that course and don't drift, because that's the way we want to have our our weeks. That build it into our lives is straight on course, in fun and vibrant and...

...uh kind of kind of leads me into what we're talking about today, is staying online, because a lot of times we don't and we when we get off of target, we drift right and if you drift too much you might end up at the wrong destination. That's why it's important for people to work with you at Guardian rockwealth and Um set out a plan for their portfolio, their life and stay on target so they don't drift. And what we want to talk today is what what you've term, or the term is style drift. And we're not talking about clothing, but we're talking about, like, I think, an investment style or a portfolio. I'm gonna like, I'm gonna be quiet, I'm gonna let you talk about what is style drift and why does it matter? Yeah, so when when I when I work for Big Wall Street and then we're managing very large portfolios. This was talking about a lot because there were times when the retail investors, so the average everyday...

...person that's really going to be in a teacher, lawyer, plumber, whatever it is that they do, they would just sort of fire and forget right. They would like, I like X, Y Z Mutual Fund and I'm just gonna put all my money in there, or maybe in two or three of them, but over time that mutual fund, and there's actually services out there that that will track whether or not their style drift, and what that means is that over time that mutual fund or folio manager no longer follows and no longer is doing the same things, and that is that reason for you buying the portfolio in the first place is no longer there because their style has drifted away. Okay, so so it has has more to do, I guess, with the direction of a of a fund perhaps, or it could be a portfolio. Could be a portfolio as well. And you think of...

...if you if you get into a plane. One of the reasons that autopilot is is so such a great innovation from way back is because it's really easy, if you're a human and you're sitting there for hours on end, to just be off by that much and you don't realize it and all you're looking at the sky. So if you don't have your instruments keeping you on track, did you know that if you're off by one degree and you walk for a couple hundred yards, you'll be off by a few feet? If you go several thousand miles and you're off by one degree, you'll be four or five hundred miles off your point. So if you begin to drift in your style because you don't have your instruments set up correctly. That's good. Then give me in a completely different place and that's a real problem. Say, if you're flying to South Korea. Yeah, yeah, yeah, you might...

...land in a different place that you don't want to be absolutely. Yeah. Um, well, I've heard it said if you leave New York in a plane and you're aiming for San Francisco but you're off by one degree, you'll end up in l a. So you just think about that right now. In a portfolio, if you're if you're heading straight, but really you're style drifting, you may end up at your best life, not at your best lives. That's right and that can happen. Hence why people need to reach out to John Browning and Guardian rock well to have these discussions, because on this podcast we don't give financial advice or counsel. We just talked about concepts and ideas. Individually, John can work with you and your family and and figure out where you are today, where you're wanting to go, and it's not just about building a portfolio for someday. That's important, but it's also John Helps you build a life today so that you can enjoy life, plan for college, cars, houses, whatever, and enjoy retirement because you've built...

...a portfolio that has stayed on course and is not drifted. is is that a good summary? That's a good summary, and you know to keep with that, to keep with that illustration. Right. Sometimes the wind is a little bit stronger at certain times during your flight and you need to make an adjustment. So it's not that style drift is a always the bad things. Sometimes you need to drift, you need to adapt, but it's all about setting up that plan, following that plan. And when you have a good plan, the plan includes a spot for detours, because detours happen. Would you agree? You've been around long enough to know that the best laid plans tend to run in at some point. They're going to run into that roadblock. So what are you gonna do when that happens? You'RE gonna turn right, YOU'RE gonna turn left, you're gonna stand like a deer in the headlights,...

...going to go up there, gonna go down. What? What's your plan for when the plan begins to fail? Yeah, and what you're plan then for getting back on target? So let's let's keep this analogy going. Because in a flight, in a plane flying, they're always talking to different air traffic controllers on that journey. Right. That's right. You are kind of like that air traffic controller to to one of your clients, because you lay the plan out, but you're looking at the economy, you're looking at rush and what's going on over that. You're you're kind of looking at the landscape to inform your clients. Okay, here's what's happening in the environment. We need to maybe make some change. You might need to go up to forty thousand feet instead of thirty five thousand flyers or something like that. Right, is it fair? That's absolutely right. Yeah, there's there's a big thunderstorm that you don't want to fly directly through. Here's the way around it, here's your most efficient way around it. Right. Yeah, and that and not that you never get back on course. You do get back concourse,...

...do and you arrive safely and happier and less stress. And because you can't you can't always see the pilot, can't always see the thunderstorm or whatever it is, but air traffic controllers can because they have other things going on, right, and that's like John it guarding rockwell, he can see things and understand things that a client can't, usually, because we're not in that business, we're not talking to people, were not doing the things that you do. So you inform your clients, you walk with them, you guide them, you direct them so that their portfolio stays more on track. And that's really a fascinating analogy, I mean, I mean you could use that in lots of places. Yeah, yeah, definitely, and probably for the investor. What I see most often is so one of two things, right. So one thing is they run into that roadblock, something happens that lose a job and suddenly the income drives up, or they have an accident and maybe they didn't have the disability insurance that they thought that happen, or they...

...even just didn't happen, right, because nothing bad ever happens to you, right. So maybe it's a roadblock. But the other thing that has happened, especially in say the past five years, to say the past five years, is we get really excited about a particular area of the market, and we talked about this, uh, in one of the other episodes that we did recently about a I. Artificial Intelligence. You get really excited about that right and you look at all these like smaller companies that are are involved in the space and you start putting too much of your portfolio and then it gets to be about portion control and so too much because it's exciting and it is exciting right. And but then what happens is you don't have enough stabilizer. So you know how planes have stabilizers. You don't have enough stabilizer in your...

...work. Folly on. You run into market downturn where some of those maybe smaller companies or companies on that cutting edge, or maybe you were just a little bit too early. It's exciting, but when does it actually become profitable for the company that is doing it right? You know, everybody looks at somebody these companies. Everybody looks at Michael Jordan and says, oh my goodness, he was an overnight success. Right, there's a whole lot of practice and a whole lot of years where he was not what we know Michael Jordan has today. That's right. So getting into early can result in that style drift and you don't even really realize it because it's fun at the time, while it's sort of running and running up until there's a problem. That's right and that's what that's what John Does with Guardian Rock Wealth, with his team and his clients, and just help you stay on target, stay with the plan, make adjustments when needed, but a a counseling you, I guess,...

...through the whole thing like an air traffic controller, to look at the environment, see what's going on, see what makes sense for you and your family your plan individually, through a lot of discussions, and I think that's one thing that sets them apart is it's not just they're not just focusing on the market and giving you data. They're talking about your your situation, the goals you set out, because that's where they always started, as a conversation with you. So when you reach out to John at Guardian Rockwell Dot com, the first step is a conversation to talk about you and where you are, your situation, how John Might be able to serve you in your family. So reach out to Him Guardian Rockwell DOT COM, or pick up your phone and text the word life to twenty one thousand and get some information on John and then shoot him a text with style drift and see start a conversation there about how he can keep you on course for a great future. John Browning, always fun to be with you, sir, always a good time. Thank you, thanks for sharing. We'll talk to you next time.

All right, we'll see. The money really is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you'd like John Amelie a free copy of his book build a life, not a portfolio, go to John's website, Guardian Rock Wealth Dot com, and click the contact to US link and send your request. John Will Mel a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice, and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or in lolication is being made that using any methodology or system will generate profits or...

...insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and its affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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