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James joins Tiffany this week to drop gems on everything you need to know about wealth management for families, along with the six steps of behavioral investing. 

About Our Guest

James Woodall recalled being frustrated at not knowing who or where to turn to for answers on personal finance as he wrestled with issues like taxes, investments, company-provided benefits, insurance etc.

He turned to friends and looking back, was lucky to not derail his investment accounts with some of the suggestions that he was getting. This is what got him started on his personal finance journey – by reading everything he could lay his hands on (some great, some not so great, some just completely off) and by explaining these concepts to anybody that would listen. He made it his goal to simplify wealth management and take the stress out of retirement planning.

Before starting Woodall Wealth Management, James Woodall worked for a well-known mutual fund and brokerage firm where he talked to thousands of clients and worked on hundreds of thousands of accounts, showing him what worked and what didn’t. This led James to design a firm to serve successful families looking for advisors that they want to build a deep relationship with and understand their needs.

James earned a Bachelor’s of Science degree in International Economics from Texas Tech University and was trained in Financial Planning at Southern Methodist University. In addition to passing the Certified Financial Planner (CFP®) exam, Uniform Investment Adviser Law (Series 65) exam and the General lines - Life, Accident, Health and HMO Insurance exams.

Connect with James


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LinkedIn: Tiffany Grant

Want to know more about the economic cycle? This article I wrote will help you understand the basics before listening to this episode:


[00:00:00] Voiceover: You know what it is. That's right. It's time to talk money with your money nerd and financial coach. Now tighten those purse strings and open those ears. It's the money talk with TIFF podcast. 

[00:00:15] Tiffany Grant: Hey everyone. And welcome to another episode of the money. Talk with TIFF podcast. So today I have James Woodall on the line. Now, James is the owner of Woodall wealth management. He started at a well known mutual fund and brokerage firm where he talked to thousands of clients and hundreds of thousands of accounts, and that allowed him to see what worked and what didn't. 

So he decided, you know what, I'm gonna just do this on my own and designed a firm to serve successful families, looking for advisors that wanna build a deep relationship with and understand their needs. So I'm super excited to have James on. He's also a CFP, so we're definitely getting to some spent topics. 

But thank you so much, James, for getting on the line today.  

[00:00:57] James Woodall: Absolutely.  

[00:00:59] Tiffany Grant: Absolutely. When we were talking just a little bit beforehand we got into behavioral investing. Now. I feel like this is a topic that my audience probably doesn't hear quite often or know what that even means. 

So I guess we'll just start there. What is behavioral invest?  

[00:01:18] James Woodall: Yep. So the way I look at behavioral investing is simply managing your decision making through a investment strategy. And what I mean by that is I've come up with six steps, essentially that are very straightforward, sometimes hard to follow because Hey, we're people and you can follow these steps to go through. 

Typically when you follow these steps, you'll end up in a much better position than your neighbors will be because you'll get better real life returns by follow. these types of steps.  

[00:01:48] Tiffany Grant: Very interesting. Of course we wanna hear these steps. So what is step number one? when it comes to behavioral investing. 

[00:01:56] James Woodall: Absolutely. And so when we look at these, these are very high level. Step number one is having just simply faith in the future. probably something you wouldn't think to hear, but if you look at it we, we look at the market today, right? We are in a bear market today. The S and P 500 is down 20%. 

So it's the definition of a bear market. Now, if you think that the market's gonna continue to get worse, you may be missing opportunities to buy those high quality mutual funds, ETFs companies, et cetera. To buy those. So what I, and a good example of this is over the long term, things get so much better. 

A good example is look at health. In fact, look at the average life expectancy in 19 hundreds, it was, I believe, 47 years old or so in 1945, just in, 40 years that jumped up to 62 years old. And then in 2000, the average life expectancy was 70. so in the span of, let's just say a century for round numbers, life expectancy grew 35 years, which with times with Neanderthals that took 35,000 years to get to. 

So when we think about how the future is getting it truly is getting better and I'm honestly a believer that's getting better at an exponential rate.  

[00:03:14] Tiffany Grant: I definitely, that's why I say great in the future. Absolutely. And, I guess for people that don't let emotions get in the way we look very long term. 

So I actually, while you were saying that I'm like, dang, there's some stuff sitting in cash. I wanna invest now. Because it's like if you miss, I know there's a stat out there. If you miss the. X amount of days in the market, the return is like tremendously different.  

[00:03:42] James Woodall: Yeah. I, I used to have that. 

So if I remember right, it was, if you miss from like 1980 to today, and if you miss the five best days in the market, which by the way, no one knows and that's gonna happen if they say they know they're, they're lying. No one truly knows. When that you missed the five best days, I believe as you put in a thousand dollars, you would. 

I don't know, let's say a million dollars, but if you missed the five best days, it was down to $700,000 by missing five days, if you missed the 10 best days, it was like $500,000 would be your total return. And then if you missed the best 50 days in the market, your $1,000, instead of being a million dollars was I think $45,000 from 50 days of all of those years. 

So continue to have faith in the future, keep investing. And that's the next step comes in, which is being patient Hey, to it's tough time. Right now we have a lot of news coming out. So seven number two. I always tell everyone is just be patient it's hard. I don't know when things are gonna get better. 

I just know that they are gonna get better.  

[00:04:41] Tiffany Grant: Mm-hmm absolutely. And just. Just really quick, get out, ignore the noise. I don't even pay attention like that. I'm just like, Ooh, sale. Let me, buy some things. Because it's like, at the end of the day, you don't know what's gonna happen, but like you said, it never fails. 

It will always go up. The market will always go up. So the economy does this on a regular basis. I think more people are paying attention now just because it's getting more airplay. But this happens like once every few years. At the end of the day long term be patient what's our third step. 

[00:05:18] James Woodall: Yeah. Step number three is being disciplined. So it's, being invested, having a plan saying, Hey, I'm gonna invest, a hundred, 200, 300 1000 whatever. On the first of the month, no matter what is going on in the world, you're putting that money in also you're buying not the what's the new, exciting thing this week. 

Who's selling me what you're buying the good quality investments. So good example is Bitcoin, right? Everyone was talking about Bitcoin this year and last year, everyone's real excited about it. They seem to be pretty quiet right now. Very quiet. Yeah. So by those good, quality things, because you want to keep investing in things that have always worked, continue to work. 

You, I always try to avoid quoting buffet, but he is just so easy to quote he said that if you could only invest 12 times in your life, you're gonna have a much different strategy than you are. If you're invest. Buying what's here buying what's exciting there following the mean stocks. So be disciplined in you're investing. 

Keep putting money. And that is what truly will build that  

[00:06:18] Tiffany Grant: wealth. Absolutely. And to quote buffet again, because Buffet's awesome. Yep. But he's he also said don't invest in anything that you don't understand. He doesn't invest in anything he doesn't understand. And so that's another thing that I live by so when it came to the cryptocurrency and stuff, like I understand it to a certain extent. 

but I'm like, mm. Stocks are based on fundamentals. Fundamentals are based on real numbers and books and things like that. And so I'm like, I have a little more faith in that versus, if somebody just says, Ooh, I'm gonna mind some coins today. I'm like, I don't understand quite how that's gonna work. 

Just another buffet equal third.  

[00:06:58] James Woodall: Exactly. Her NF. Yeah,  

[00:07:01] Tiffany Grant: exactly. Yeah. So anyway, all right, so we have look long term, be patient, be discipline. What is our fourth? I think we're on the fourth.  

[00:07:13] James Woodall: Yep. So number four is asset allocation. So what ratio of stocks, bonds, and cash do you need to be successful? And this is one that typically comes down to where I I'm a firm believer in working with a professional to find out what that ratio can be. 

Most firms may have a little bit difference of a variance, but you'll sometimes hear I have a, a 60, 40 stock portfolio. That's 60%. 40% bonds. And they did a study O years ago. They basically said that the greatest indicator of wealth is how often you stay in that asset allocation. And if you think about it, because if the more stocks you have, the more ups and downs you're gonna have, and the more you can handle those ups and downs, the more risk tolerant you are. 

Because you have more of, let's say faith in the future. Maybe you can't handle all those ups and downs, so you have greater amount of cash and bonds compared to those stocks. So that's when I say, what's, if you ask what's right for me work with the professional, find someone that you trust to give you a good ratio that works for you, your risk tolerance and your time horizon. 

Typically what we say is the closer to time horizon. That less risk you need to take on for whatever that goal or that use of. Investments are for  

[00:08:29] Tiffany Grant: yes. Yes. I'm so glad you said that because a lot of people just think, oh yeah, I wanna invest. And just go all in with stocks, but it's important to make sure that you have a balance there. 

So like you said, you can have a hedge against some ups and downs. Cuz you don't wanna put all your eggs in one basket for sure. So what is our, exactly? Yeah. What is our step?  

[00:08:51] James Woodall: So five is I'm having to make my notes too is diversification. And so this is one that everyone always talks about, but I don't know if we over truly talk about what it means and why we talk about it. 

So when you think about diversification, think this, that I don't wanna own enough of one single one thing to make a killing, and I don't want to own one enough of one thing to get killed by. So we think about all the crypto bros. I love calling them that, cause it just seems to always be the. is they owned only crypto and they were making a killing. 

Then they got killed by it. Same thing happens with diversification. So if you are buying stocks, okay are you buying a whole bunch of the one company? Are you buying a whole bunch of one fund? Are you buying two funds that are actually the same fund with different names? So you really do need to dig into that and even look even further. 

If we look at the bond market, We have bonds in the us right now that are struggling because as interest rates rise, bond prices drop well. In other parts of the world, it's the opposite. That's happening. Interest rates are dropping there. So those bond prices are rising. So you wanna be invested in not just the us, even stocks and bonds, but also the rest of the world as well. 

A good example today is the Euro is. Worth $1. It used to be, the Euro was worth a dollar 20, et cetera, et cetera. So your dollar now has much gone much further than what you were buying, investing in in Europe just last two years. So that's why we want that diversification across. Not just sectors and companies and investments, but across the world and in that stocks  

[00:10:32] Tiffany Grant: and bonds. 

Yeah. And just to bring up another interesting stat that I had learned over the years was that during the 2008, 2000 died crisis even though the us was struggling, people that were D diversified in international stocks, they actually didn't take that much of a hit. So that's another like point is that even when the us is doing horrible there might be other stocks. 

Across seas or wherever that are doing better. So that just goes to your point as well, diversify, diversify, diversify, but don't diversify too much to where is no point? Kinda like what you said when you have two funds that are the same thing.  

[00:11:14] James Woodall: exactly, it's a dance. Let's call it what it is. It's a dance finding that right. 

Amount of diversification. If you really go in the weeds, you wanna have. I see people that will do accounts where if one thing's growing and one thing's losing money because when the cycle shifts, the opposite is true. Absolutely. And those that are growing are now  

[00:11:33] Tiffany Grant: struggling. So yeah, absolutely. 

Absolutely. So we have, and please correct me if I'm wrong. We have. Keep an eye on the have faith in the future be patient  

[00:11:44] James Woodall: Looking back we've already got over five of 'em, right? So it's faith in the future and it's in this order for a reason. So faith in the future being patient being disciplined, your asset allocation, your diversification in the final one is rebalancing and rebalancing is a very interesting one because as we have different investments, as the cycles changed from. 

early, mid, late, recession cycle. Certain companies will do better. So a good example right now is energy companies are crushing it this year. Everyone else is hurting. So a few years ago is the exact opposite. So we rebalance every year. And when we rebalance, we go back to that asset allocation. 

Where were we? Because things are gonna grow at a different rate. And there's a study by Vanguard that said it doesn't matter if you do. Once a year, twice a year by percentage of gains and losses, it doesn't matter. As long as you do it consistently throughout time, the same day, no matter what is happening does not matter after keep hammering that home, no matter what is happening, keep rebalancing the same day or the same put time period each and every. 

and that will help you grow long term. That will help you. As things tend to grow differently, different rates will give you a much better advantage over the course of your lifetime.  

[00:13:06] Tiffany Grant: Now I'm, I'm so glad you said that, cuz that just like peaks I to my own portfolio, cuz I used to like actually have it in my calendar where I would do it. 

Once every six months, but I noticed that I have not gotten that alert. So I don't know when the last time is that I rebalance. So with that being said what do you think? And I know it just depends, but should we be doing this once a year? Once every couple of years, twice a year? What would the typical rebalancing schedule look like? 

[00:13:40] James Woodall: at a minimum, I've always seen once a year. That's the minimum that I've always seen. I've always heard. That's how I've been taught. When we look at, where are you investing at? Some firms are gonna charge fees, some funds charge fees. So it depends on the cost of rebalancing. And you may think, Hey, I don't want to pay $10 to rebalance. 

Okay. We think about that timeframe, that exponential growth over the long term, $10. maybe a little bit more, excuse me today, but over time that's gonna be nothing and you need to keep building that good habit. That $10 could be just a good habit builder to say, okay, if I'm willing to spend $10, when the market's down low to rebalance, that's putting you ahead of folks already, because if you don't rebalance, what's gonna happen over time is as you start pulling in that income, you're gonna start pulling in from maybe those one, those major gainers or those major losers. 

And the opportunity cost that you missed out on by not rebalancing will drag your long-term returns down and it'll actually take the principle of your portfolio down as well.  

[00:14:42] Tiffany Grant: Yes. That is a very good point. That is a very good point. So even if you don't have a professional in your corner, which we highly recommend, but if you don't just make sure you keep these tips in mind, because even those DIYers people that do it yourself, all of these things are super important. 

So definitely keep that in mind. Now, James, if people were interested in learning out. Nope. So James, if people were interested in learning more about you or your firm, where would they be able to reach out?  

[00:15:17] James Woodall: The best way to get ahold of me is either one. Give me a phone call. It's (214) 281-4496 is my phone number. 

I love talk on the phone. Another good place to go is my website. It's Woodall wealth It's all one ma reward. It's w O O D a L. Wealth  

[00:15:37] Tiffany Grant: Awesome. Awesome. And we'll make sure we have all of that in the show notes. So if you're doing something else, don't worry. We got you just check out those show notes and you'll have all the information there. 

So thank you so much, James, for coming on the show today.  

[00:15:51] James Woodall: Oh, thank you T for having me. I really appreciate it. Hope I can come back on.  

[00:15:54] Tiffany Grant: Absolutely. Bye.  

[00:15:58] Voiceover: Thank you for listening, joining, and being a part of the money. Talk with T podcast this week, you can check TIFF out every Thursday for a new money talk podcast, but if you just can't wait until next week, you can listen to previous. 

Podcast episodes money, talk with or follow TIFF on all social media platforms at money. Talk with T until next time spend wise by spending less than you make a word to the money wise is always sufficient.   


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