SUMMARY
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Gil Baumgarten is a disruptive wealth management pioneer. After battling UBS in defense of 100% ETF portfolios, a direct assault on the firm’s fee-rich mutual fund business, he was on the original beta-test team of six advisors permitted to run discretionary ETF portfolios in 2002. He has since been named one of the “Top-20 ETF Thought Leaders in the U.S.” by Barron’s and The Wall Street Journal . Gil’s fee-only fiduciary firm, Segment Wealth Management, is a top-15 firm in Houston as ranked by the Houston Business Journal . Gil is perennially named a top-50 advisor in Texas by Barron’s , out of the state’s estimated 26,002 registrants. Gil is also the best- selling author of FOOLISH: How Investors Get Worked Up and Worked Over by the System.

Today, Gil joins the show to discuss his background in the financial services industry, the difference between fiduciary and non-fiduciary standards, and the psychology behind investing.

TAKEAWAYS
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00:57 – Jonathan introduces today’s guest, Gil Baumgarten, who joins the show to talk about financial trauma, share his experience in the financial services industry, and why he decided to pivot
08:39 – Leaving to start his own firm
10:50 – Gil talks about his book, FOOLISH:How Investors Get Worked Up and Worked Over by the System
13:10 – The Slaughterhouse Example
16:29 – Breaking into the brokerage industry and the major players out there
23:41 – The fiduciary and non-fiduciary standards and recent legislation
27:18 – Performance and return on investment
35:01 – Investor psychology and ‘cognitive bias’
42:29 – One piece of investment advice to heed and one thing to completely ignore
50:07 – The last thing Gil changed his mind about and the one question he would like to know the answer to
51:37 – Jonathan thanks Gil for joining the show today and lets listeners know where to connect with him

QUOTES
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“They say that you’ll stay in a situation until the pain of leaving is less than the pain of staying. And, so I kinda reached that point with touch-point after touch-point that I was getting in conflict over some issue with the firm. It was always about what was best for the client. And I just had enough and decided I wasn’t going to do it anymore.” (08:50) (Gil)

“When you start to dissect the brokerage industry, they understand how sticky the relationship is between the advisor and the client. And they will position themselves in such a way to monetize that. They will sell information. They will sell order flow. They know that you’re going to stick with a mutual fund for a certain period of time. They also know that clients like for fees to be hidden from them. They like to understand that people in the brokerage industry are getting paid; they just don’t want to see it.” (13:52) (Gil)

“Anybody in the world can give you investment advice...” (20:32) (Gil)

ABOUT MINDFUL MONEY
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Do you struggle with money? You’re not alone.
Money is a means, not an end. It’s a necessity of life for sure, but more money does not always guarantee a “good life”. Money enables many aspects of modern life, but as a dominant consideration it becomes destructive.
The paradox is that more time and energy spent on personal finance does NOT create better outcomes. Unlike many other parts of life, we can’t create better outcomes by being smarter, spending more time, or putting in more effort.
Join Mindful Money author and experienced 40-year investor Jonathan DeYoe as he shares stories from artists, authors, entrepreneurs, and other advisors about how they mindfully minimize their need to think about money and get more out of life.
If you aren’t happy with your finances, feel like money takes more time that it should, or want to place your financial decisions into the broader context of your life, this show is for you.
Each episode will draw the line between the “enough” activities that the academics tell us are additive to family outcomes, and those “little bit more” efforts that take time and sap energy, but do NOT improve outcomes.

GUEST RESOURCES
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Gil’s LinkedIn: https://www.linkedin.com/in/gil-baumgarten/
Gil’s Website: https://gilbaumgarten.com/
Gil’s Book, FOOLISH: https://gilbaumgarten.com/book/
Gil’s Musings: https://segmentwm.com/blog/
Segment Wealth Management Website: https://segmentwm.com/
Important Disclosure: https://segmentwm.com/important-disclosure-information/

MINDFUL MONEY RESOURCES
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Jonathan’s Book – https://www.amazon.com/Mindful-Money-Practices-Financial-Increasing/dp/1608684369
Website - https://mindful.money/
Jonathan DeYoe on LinkedIn - http://linkedin.com/in/jonathandeyoe
Mindful Money on Twitter - https://twitter.com/MindfulMoney_Ed
Mindful Money on Facebook - http://facebook.com/MindfulMoneyPlan
Mindful Money on Instagram - http://instagram.com/mindfulmoneyplan
Mindful Money on YouTube - https://www.youtube.com/c/MindfulMoney🎙️
Podcast Production by FullCast: https://fullcast.co/sn