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Paul Adams: So, this gentleman finally circled around to have a conversation with his

brother about planning.

His brother, getting ready to pull the trigger on a life insurance

policy.

High income guy living in one of the most expensive areas of the country at the

time, and wife, children, deeply connected family.

But, his brother, again just a little bit older.

And, he didn't feel like he could put his foot down and say, "Listen, bro.

Maybe it could be a little tiny mistake if you own

too much life insurance and you'd lose a little bit

of monthly premiums.

That would be the small mistake.

The big mistake is you not having this coverage if something happens

to you."

But, he didn't want to press on his brother.

His brother had kind of a really high class job and kind of felt like he was talked

down to a little bit, having this little financial advising practice in a simple part of town.

So, he didn't press.

And what happened was, his brother got some extraordinary headaches over the

holidays.

Now, this is years ago holidays, not recent.

Terrible headaches, went to the emergency room and was diagnosed with a horrible

type of brain cancer.

Now, of course, as soon as he was diagnosed, what

did he do, Cory?

Wild guess.

Who's his first phone call to?

Cory S.: Yeah, his brother to say, "Hey, can we get that life insurance squared away?"

Paul Adams: Mm-hmm (affirmative).

Yup.

And, of course, the brother nearly wept and said, "No.

There's no chance.

We've waited and there's a check box that we have to

check when you take delivery that your health hasn't changed."

You would absolutely be defrauding the insurance company.

You could do that.

They will not pay the claim because they'll request your medical records

if you die within five years of having gotten the policy.

They're just going to double check that all the disclosures were correct.

And, it was horrendous.

Brother went through his end of life that year.

Died.

Left only the assets that he'd accumulated.

And because he was just in his 50s, it was kind of, he didn't have [power band 00:06:01]

of his ultimate income, where he's starting to save a lot of money.

He didn't have enough for his family to be financially secure.

That whole part of the family has been ejected from that part of the country where

the standard of living's really high.

The family, deep discord.

The family blamed the younger brother for the older brother not

taking action, sued him, sued the insurance company.

I don't think they got anything except a lot of heart ache.

So, that's going to lead off our actual tragedies, and we'll start off on the protection

front, but just tough to watch somebody go through.

Anything you want to add to that one before we hit the next one, Cory?

Cory S.: All of these stories have these inherent contradictions in them, and life

insurance is the one that's the toughest, where you can only get it if you don't need

it at that time.

The moment that you most want it is too late, if you haven't already made

those moves.

That's tough.

It is true in the world of investing as well, which is what our

next topic is going to be.

Periodically, we have clients that we meet.

More often people that don't become our clients that have pinned

their hopes on one company.

Because of their meteoric rise, and the cult following

that they have, Apple is more often than not that company, over the last decade.

Paul Adams: These are not even people that necessarily ever worked for Apple.

These are not people that have any hand in it.

We're talking about regular everyday people, some of them in the tech business, some not.

Cory S.: Just everybody.

They probably own an iPhone but that's about it.

You know what's great about this is that we have some

data to show what some of these rides might have been on.

It's a very pertinent one for me because I actually ... I owned Apple

for a while.

Traditional full disclosure.

Although, I don't own it anymore, so you know, whatever I'm saying is not impacting my holdings.

Paul Adams: Actually, Cory, for the record, you do.

In an academically allocated globally diversified portfolio.

It's only natural that you would have some small fraction of

Apple, along with- Cory S.: That's true.

Paul Adams: 13,000 other securities in 42 different countries, investing in 192

different countries.

Cory S.:Mm-hmm (affirmative), but most likely, I do have some amount, but I can't

control the amount.

Paul Adams: Exactly.

Cory S.: So, we actually had one client that has a real and specific story where they

almost bought 100,000 shares of Apple back in 2002 when it was one dollar a share.

Now, they didn't do it.

Their broker at the time talked them out of it, and now they've

got this story in their head of what they've seen happen.

2005 it was at $5 a share.

January, 2010 it crossed $30 a share.

They would have had $3 million at that point.

Today, it's at $148 a share.

It's been going back down but in the last three months, it was

as high as $232 a share, which means he would have had a $23 million holding in Apple.

Paul Adams: From 100,000?

Cory S.: Yeah.

From 100,000.

Now, everyone who's listening, you might be thinking that

if I'd only done that, this tragedy of missing that boat, but that's not actually real.

That's not the tragedy, because here's the reality.

No, you wouldn't have made it from 2002 to today without drastically changing your holdings

in Apple.

You would have read Money Magazine, or talked to a friend at a party,

or wanted to buy a new house.

Would you have lived through that ride back down to

$13 a share after it had gone up somewhere north of $30?

There's several times, as you can see in the graph, where you have these

huge drop downs along that way.

And remember, we have hindsight, but in the middle

of that, all you've seen is Apple go like this and now it's down at this incredible

[seat 00:10:03].

Paul Adams: We do live with it, from there.

One to the other was some kind of smooth rise, and that's how it got there.

But, would you do me a favor and right around 2010 there's a peak and then a trough.

Are you able to hover over those two numbers?

Yeah, right there.

So, we've got ... It's up to $100.

Let's pause right there.

You would've had $1 million to $10 million.

Let's say, what was the purchase date approximately, when it was $1?

Cory S.: 2002.

Paul Adams: So, from 2002 and then to 2010, you went from $100,000 to $10 million.

Let's pause right there.

How many people would think appropriately ... Now, 2010, did

we even have the iPhone yet, Cory?

Cory S.: iPhone was out in 2010 but it was about 2007, 2008 when we started knowing

about the iPhone and having it released.

I forget exactly.

Paul Adams: Yeah, so think about that.

You say to yourself, "Okay, I'm going to hang in there.

I might keep going."

And then what happens to the market?

What happens just the months after that?

You pull down to that trough.

There you go.

Down to $60.

So, you just rode it from $100,000 to $10 million.

Now, number one, you may have been borrowing a bunch of money, you may have been

living a better lifestyle, you may have quit your job, sold some and paid off your

house.

But, let's say you actually held all of it and now you're at $10 million and you drop

to $6 million.

And people are wondering what's going to happen.

It's the mortgage crisis.

Whatever explanation people give, that was beyond the mortgage crisis, but people

are freaking out, "Apple's going down the toilet."

Whatever the thing is.

Paul Adams: There's almost zero chance anybody held through all that, and you know

why?

You know that?

It's because, I promise you, that person would have been on the

cover of all kinds of magazines like Bitcoin millionaires were for a little while.

If that person really existed out there, and if they

do, we'd love to interview you on the show.

Please, don't hesitate to reach out.

We will be verifying your past trading accounts if you

choose to do so.

But, if you really rode it through all of this and now are worth over $20

million, we'd be happy to interview you on the show and give you a voice.

I don't think

you exist.