Letting Go of Fear and the Ground Beneath You

Our producer, Russ Hodge, had never been in a hot air balloon. In fact, he’s afraid of heights. But he joined me for a sunrise ride to confront that fear. And what he discovered surprised him: the flight wasn’t terrifying. It was smooth, peaceful, even exhilarating.

The pilot reminded us of something crucial: “Proper preparation prevents poor performance.” That’s not just balloon wisdom it’s a financial principle. Investing, like ballooning, feels risky when you’re unprepared. But with the right planning, the journey becomes not just manageable, but life-changing.

ETFs: A Smarter, Simpler Path to Diversification

After the flight, Gary from Bel Air called in asking about transitioning from individual stocks and bonds to exchange-traded funds (ETFs). I applauded his instincts. ETFs are one of the most effective tools for reducing risk, increasing diversification, and simplifying portfolio management.

I encouraged Gary and all of you to explore ETF options using resources like Morningstar or our own portfolio GPS tools on The Truth About Money website. If doing it yourself feels overwhelming, that’s okay. A fiduciary financial advisor can guide you, just like a balloon pilot does with experience, training, and a view from above.

Bond Funds vs. Individual Bonds: Know What You’re Holding

Another key discussion this week centered on bonds specifically, whether to invest in individual bonds or bond funds. Here’s the breakdown:

• Individual Bonds offer predictability: you get a fixed rate and a maturity date. But they’re expensive, harder to diversify, and tough to price fairly.
• Bond Funds, especially ETF bond funds, offer higher yields and broader diversification. You don’t get a maturity date, but the tradeoff is often worth it.

Personally, I prefer bond funds for most investors. The balance of safety, income, and accessibility makes them a better fit especially when bought through ETFs that reduce fees and improve liquidity.

U.S. Treasuries: Still the World’s Safest Investment

David asked whether there are foreign bonds safer than U.S. Treasuries. My answer was direct: absolutely not.

The U.S. Treasury remains the gold standard of safety and liquidity. Investing in foreign bonds might sound appealing, but exchange rate risks can wipe out gains. Safety isn’t just about the issuer it’s also about what your return is worth when converted back to dollars.

Hollywood’s Digital Disruption Is a Lesson for Us All

I also spoke with Neil Stiles, President of Variety Inc., about how Hollywood is dealing with change. The numbers are staggering: YouTube uploads the equivalent of 16,500 full-length films every week. Compare that to the 151 wide-release films Hollywood produces annually.

Traditional gatekeepers are being bypassed. Content creators now go directly to audiences. Sound familiar? Just like investors no longer need to rely on stock brokers or big banks to build wealth, filmmakers don’t need studios. Technology is democratizing access in both industries but it’s also creating more noise.

Emerging markets like China represent big opportunities for the film industry, and similar growth markets exist for investors. But just like in ballooning or investing, those opportunities come with new risks from censorship and regulation to platform instability.

Overcoming Fear, Financial and Otherwise

Whether it’s the fear of flying, the fear of investing, or the fear of an uncertain future, this episode came down to one idea: fear can paralyze you, or it can push you to grow.

Russ conquered his fear of heights and came back grounded in a new kind of confidence. Gary is making smarter choices by simplifying his portfolio. And you — the viewer — have a chance to take that next step too.

Facing your fears doesn’t mean being reckless. It means getting help, preparing well, and understanding the risks. Because whether it’s hot air balloons or the stock market, the view from above is worth it.

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