Podcast 68. Investing for 20 Minutes a Day with David Torrence

Average Joe Finances:
0:00

Hey, how's it going everybody? So today's guest is David Torrence, AKA king David, and he is the CEO of throne CG, an investing consulting firm, and the founder of KP cares foundation incorporated. A nonprofit geared towards assisting under-resourced communities in bridging the wealth gap. As a first-generation college graduate from university of central Florida, where he received his bachelor's degree and his master's degree at Liberty university David's passion is to serve and be of service to his community as an investor and philanthropist. His mission is to give back by showing minorities how to gain financial freedom through the stock market. And I want to add that something I have from just a conversation with him before I hit the record button, is that David, and we'll talk about this too. King David here is currently retired at a young age, so really excited to have you on the show today. Thank you so much for talking with me. Thanks,

David Torrence:
0:56

Mike. I appreciate it for being here. I'm really looking forward to the conversation.

Average Joe Finances:
1:00

Absolutely. Hey, the first thing I'd like to ask, it's what I ask every guest that comes on the show and, I shared a little bit of your background and just, just wave tops. So I'd like to get a little bit deeper into the ocean here. Can you explain to us a little bit, or just share a little bit more about yourself and your story? How did this all get started for you?

David Torrence:
1:18

Yeah my career prior to this was in sports. I was the director of sprint and performance at a private Christian. So I've trained athletes for the good part of my career. I've trained players, such as Michael Beasley played for the Miami heat on Tyreek Evans. I played, I've trained a lot of collegiate athletes that come out of Florida, such as Sam Griffin, the Middlebrook. These are guys who have gone deep one to play basketball. So that was my initial background, but I always knew that career was not going to be a new. For me to have the lifestyle in which I wanted. Why do you ask? Because when you're training and you're training and you're trading your time for dollars, and there's all your cap on how many hours you can work in the day there for your money as cats. So I knew I had to find a way in order to live the last time, which I wanted to live and have some sense of freedom and not feel like I was always going to have to train someone and live that last. Do I love what I did? It wasn't going to be sustainable for the type of person I knew I want it to be. So with that in mind I took up investing and the simply put my cousin, who's a who's an analyst. It was a financial analyst mentor. For awhile and got me started. And then once I made my first little piece of money, I got hooked because I realized I made a thousand dollars and I didn't do as took me two minutes to do it. And I didn't have to watch it happen. I came back to my phone and that happened once in a way. And from now on, I went on a journey just to find out how can I scale this? How could I learn more? And how can I make enough to match what I was making at my current job? And when I was able to. W in a week, what I made in a month, I knew I have something here. And then from there it was about being able to do it over a year. Timeframe. Once I did over your time for myself, I'm gone. And two years later,

Average Joe Finances:
3:03

Wow. That's amazing. So it sounds like you were able to do this in such a short time period, and you found, you found a way to stop trading your time for dollars, like you said earlier. So I'm sitting here taking down notes as you're talking and just in your intro alone, I've already got some really great golden nuggets here, which is absolutely amazing. Because you're absolutely right. You're time. In the day is cat. We've only got 24 hours and somewhere in there you need to eat and sleep and just take care of yourself and have some personal time. So how do you keep, keep the money flowing in where you're not trading all that time for money, when you started off in a pretty great career field, and it sounds like you had really well, especially with some of the athletes that you train, which is amazing. But you realize as much as you loved what you did. You had to change the game a bit, to be able to move on in life and, get to the point where yet at right now, where you're retired. So I wanted to ask, cause we didn't talk about this before we recorded, but how old are you right now? I'm 27, 27 years old people. You hear that? 27 years old. That's amazing, man. What are you currently doing right now? So now that you've reached this spot of financial independence, what are you doing right now in this journey? What is it that sustained?

David Torrence:
4:14

From a financial standpoint. Yeah. So from a financial standpoint my ability to trade and also invest, there are two different things. A lot of people think investing and trading are the same thing. They're not. So I have long-term investments. They're a self-directed Roth as well as a individual brokerage. And then that one cool. Snip out. I just don't hear it really quick. I never going to get into it as I've leveraged my job to get to where I'm at. And I go more into detail about that one on the twofold standpoint, but also on my trade. I trade each morning at eight o'clock. I trade the futures market which is the global market and I trade the bond market. So I'm able to make pretty much my. My living in 20 minutes in the morning. So from eight 20 to about eight 40, I'm pretty much making my money for the month and then I'm done. And then from there, everything else I do is commit it towards my consulting firm or my nonprofit. And that's pretty much what sustains me in terms of the financial standpoint and also my time.

Average Joe Finances:
5:14

Okay. Yeah. That's fantastic. That's a very minuscule amount of time in the day for you to make the income that you live on. And you're such a short period. That's fantastic.

David Torrence:
5:25

Yeah. It's the power of investing. There's so many ways to invest, as we know is just the one that I found best that suits me and that I have an expertise in, but there's so many other ways to.

Average Joe Finances:
5:37

Yeah, right on. So I have to ask it was your cousin, right? Your cousin, that was a is a financial analyst. So he's a financial analyst. And what made you go to him to say, Hey, because I want to, learn how to do ABC and D like, how do I do this? What motivated you to do that? So

David Torrence:
5:56

initially he tried to teach me when I was in.'cause when I was in college and I was working in the hospital doing I worked in physical therapy for three years and I was doing sports medicine rehab. There was an older gentleman that told me Hey young man this is gonna sound weird, but you should really get into investing. You'll love yourself for it later. I was like, all right. And then, I had a conversation with my dad and my dad was like, your cousin, he just finishes these guys, his second masters. And financing, that's what he's doing. So I contacted them and he tried to tell me about it then. And of course I got interested. I bought a book, I didn't finish it. bought a stock, it was a penny stock. I didn't make any money off of that. Lost a hundred bucks. And then I don't know what happened. I was just moved to find a way to make money without having to work. And I was like Let me try investing again so far, I'm only back to my cousin. He was like, blew me off a little bit because I didn't take it seriously at first time. And he tested me. He said he gave me a few things to do and gave me two books to read and the video of the watch. And he said, come see me after you did that. And it took me a while to me about two months, and then I did it. And then from there, the rest is history. He taught me everything I need to know to get started. And from there, he didn't have to teach me anymore because.

Average Joe Finances:
7:05

Awesome. Can I ask you what those two books were? Yeah. One

David Torrence:
7:09

was the intelligent best about Benjamin Graham. The other one was was a book by Warren buffet. I don't know a book. It was in the video was on the economic machine by Ray Dalio who runs Bridgewater's head fund, hedge fund

Average Joe Finances:
7:23

the economic machine.

David Torrence:
7:24

Yeah, the via economic machine. Yeah, that video. And then intelligent investor by Benjamin Graham. Who was Warren Buffett's. Okay is like the king of value.

Average Joe Finances:
7:34

So did you have to like really nag your cousin and just pursue him a bunch because you, you said he wasn't taking you seriously at first because you, you blew him off the first time. So how often did you have to like, hit him up? Hey man, like I'm serious this time let's do

David Torrence:
7:47

this. And I started like sending him a note pictures of me taking notes. He that's when he started taking me a little bit serious. It wasn't that much. Like I like, cause he lives in California, so there's a time difference too. Yeah, I hit him up. I'll text him and he'll just say, all right, good job. Keep it up. But did you do this? I'm like not finished the book yet. We'll finish the book. And it was it was that back and forth for a while but initially I was actually, I actually had a little bit, I was like, yo, just tell me what plays to get into what I'm trying to learn. Tell me where to put my money. And he was like, no, He was like, figure it out, learn, and then we'll have that conversation. And he did help me out from my first investment. I never forget it was an options trade for square. It was square. I did a short term option call during their Q Q1 earnings and their stock price, like jumped 10 bucks on the option side of them. He exponential. So it was almost like a thousand dollar return. I had guy and that's when I got.

Average Joe Finances:
8:40

Awesome. Yeah, that's fantastic. I think one of the key things to take away from this entire thing is just, you are, you were persistent and you educated yourself and that's the biggest thing is making sure that you educate yourself before you go and start dumping money in because. You gave a good example, right? The first time you invested, you bought into a penny stock, lost a hundred bucks. And you're probably like, ah, I don't know if this is for me, man. I've lost some money on penny stocks too. It, it happens, but that's just, that was stuff I was playing around with. It's, anytime you invest in a penny stock, it's normally you should only put money that you're okay with losing. It's like a gamble. So that yeah, for sure, man. So that's awesome. So you were persistent, you got yourself educated and now you are where you are today, right? So now what is it that. That changed the trajectory for you, right? So you got educated, you read the book and you started investing in options, right? What was the next step after that? To get yourself to the point where in three years that this is now what you do full time. So like we're not full-time for 20 minutes a day. So like what is it that got you to that point? What was the threshold that you had to get past?

David Torrence:
9:46

I'll be honest with you. I wasn't profitable for a long time. When it came to trading, investing is it's easy to be profitable because you're holding along. So on the investing side, I was cool because I had long-term investments. I've been holding apple for the past three years, so that was my biggest, that was my biggest investment. Initially. I was really, that was the only stock I owned for awhile. So I wasn't very profitable in my trading and that's when I made the biggest leap. Run-on I got profitable by trading in my cousin, introduced me to future. And then once I got introduced to the futures market and lost a bunch of money attempting to do that and then took a step back and got some mastery, that's when I made this huge jump and my money grew exponentially enough to where I could maintain, continue to scale that amount of money. Cause it's different to make money one or two times when you hit, you make a grand, you hit big. That's very common with investing. It's easy to do actually the hardest part. This to do that and continuing to do it without losing to where you almost started from square one. Again, that is the hardest part over a year to year timeframe. That is the hardest. So when I got the patients and the structure and the discipline to do that, that I made my biggest jump. So it had nothing to do with really skill. It actually had. Me learning myself, how greedy I was mine anxiety when it came to trading. Cause we're talking about trading, not investing there's glass psychology. That's attached to trading that a lot of people gloss over, but it really is what makes or breaks the best traders, the psychology and the discipline. Not really the skill, because if it was skill is all up down. Can you guess which one is that? That's easy. The hard part is the human nature aspect.

Average Joe Finances:
11:31

Yeah. And actually, as you were talking, that's the one word I wrote down out of that whole. Was discipline. So you, the huge difference, like you're saying between braiding and investing, when you're investing, that's your long term stuff, that's the stuff you're saving for the few times.

David Torrence:
11:48

Yeah. We're retirement age. I'm sorry. Retirement age by the, by America. Quote-unquote

Average Joe Finances:
11:53

yeah. But what you're doing right now with your trading is you gotta, you have to make enough to. Not only do you have enough to trade the next day, but you have enough to spend for what you need to spend on for that day as well. So you're, this is also your income, right? So you have to make sure you have enough put to the side to pay the taxes on your gains. You have to make sure you have enough put to the side to be able to live your daily life. And on top of all, that still have enough to invest the next day and continue to build and build on top of. So obviously that's what you've done. And you've got yourself to a point now, you were able to build up enough capital to have money, to continue trading and still take out when you need to. So that's

David Torrence:
12:37

as investing as well as investing too, because I treat the thing baffled that also gives me a competitive edge. As I treat my trading macro true business. I'm literally, I treat if there's a certain amount of money that goes towards longer-term investments that comes from that trading. So guess what something goes left. David has a bad week. David has a bad month. Guess what? I've been taking profits aside, not only to pay the bills and be a productive citizen. But also to make sure that if anything happens well, you know what I have money to pull from to where I can get my account back to a place on knowing needs to be in order for me to continue investing and also to keep the business afloat because there's cool little things that I, different research engines I used to have to pay for. Those things mattered and that's an expense in the business, right? So those kinds of things are.

Average Joe Finances:
13:26

So now also on top of that, you also have a consulting firm, right? So you're consulting other people and businesses, I would guess, or yeah, I can

David Torrence:
13:34

see other people in their investments and also consult businesses and nonprofits for investing. So teaching them how to better use free cash flow within their business. Typically, if it's a profitable business, you have free cash flow money that you have sent in to the site after expenses, after tax. So we're talking early, so we're talking earned income and I'm usually I'm consulting people or businesses or nonprofits on, how can you best allocate that capital because inflation and taxes are going to kill you. Like you sit like off air when you spoke about if you make X amount per month, and it stays there. The cost of living going up inflation, the cost of gas, smoke and everything going up that X amount of dollars wouldn't buy you the same now than. Yeah. So that's why it's important to invest free cash flow, any money you have seen on the site and not to truly hold on to a savings account, like we may have traditionally been taught

Average Joe Finances:
14:26

right now. I'm a firm believer in having our emergency cash, like having an emergency fund. But other than that you shouldn't have just cash sitting in the bank because being very conservative right now on this, year's like the way it's looking, but they're saying we're going to have a 4% inflation, 4%. And if your money is sitting in a checking account, that's getting 0.02, 5%. We're literally losing 3.7. Yeah. I spent every month on your dollar. So that is definitely you're losing money by holding cash. You're losing money and that's something we'll see that it's just trash. Some people say cash is king and it is to a certain extent, right? I like what you just said there too, because cash can be in cash is trash, if you're just sitting there holding it and you're not using that, can. Towards something. So you can make cash king by actually investing it and getting a return. That's going to beat inflation because if you're not beating inflation you're losing money. All

David Torrence:
15:30

I agree a hundred percent. If you don't mind me asking how long I love the document, how long did it take you to come to that realization? Because I think that is important to be. Too long. I think it's so

Average Joe Finances:
15:43

much, much older than when you realized that I could tell you that.

David Torrence:
15:45

And that's the problem I have with society. I feel like we're not educating our youth enough to understand that and know that.

Average Joe Finances:
15:52

Absolutely. Yeah. And, and I realized, so I started, let me see, I am 37 now. Yeah. It was shortly before I moved a couple of years before we moved to Hawaii. When we decided that we needed to figure out how to get out of debt, because I had a lot of credit card debt. I had loans, I had all this stuff because I was living my life the way, society teaches you to live life and saying if you've got the money, spend it because you only live once. And. So what if you rack up a whole bunch of credit, you just keep paying it off until the day you die. No, that's not how you should live life, right? Sure. I'm not scared of debt. I'm not scared to have debt. I believe debt is a tool. If you manage it correctly and you leverage it. And that's something I had to learn, however, there's, there are certain debt like consumer debt, credit cards, personal loans and things like that. That does absolutely nothing for you. It took a while to realize that and went, and once, I did my wife and I, we decided, okay, it's time to get serious about this, pay off our debt. We knew we wanted to move to Hawaii. I was negotiating for orders to come to Hawaii. So we said, Hey, we need to get rid of this $27,000 in debt and have money saved for a down payment or for renovations or repairs to a home because we want to buy a home in Hawaii. So we said, okay, cool. So we come up with the game plan, we built our budget. We started off following Dave Ramsey's baby steps. We got to step up all of our debt. And then we went elsewhere because I didn't want to continue going down that road because Hey, I paid off, my bad debt, my consumer debt. Now it's time to take on debt that I can leverage AKA my mortgage to continue on. So we did we paid off the debt. We wound up saving $40,000 in a two year period. We paid off the $27,000 debt. We had $40,000 in the bank, but when we moved to Hawaii to come out here as a down payment or yada didn't need a down payment, right? Because being in the military, I was able to use my VA loan. So I did 0% round. We use some of that money towards closing costs. Cause we didn't want to roll it into. And then the rest of it, like when we bought the house, we knew there was certain things we want to change. So we took that money and invested it into the home and made our renovations. So fast forward to where we are now, I ought the house for,

David Torrence:
18:04

I was going to ask, how much is it worth now?

Average Joe Finances:
18:06

I'll go full disclosure here. I bought it three years ago for about 785,000. And today I could sell it for 1.1. Three years later. And that's awesome. That's without getting it looked at yet. I'm sure if I had an appraiser come in here and they saw all the renovations and stuff that we did, the upgrades that we've had I'm pretty happy with where we're at right

David Torrence:
18:25

now, an estimate that's a long-term investment, a strategic, very intentful long-term investment that is going to pay us.

Average Joe Finances:
18:34

So some people wouldn't look at your primary residence as an investment. But I do. And here's why, because I do plan on very shortly here taking out a home equity line of credit to pull some of my equity out and invest that. So I'm looking at getting into my first syndication here buying into apartments. Cause I feel like that is one of the Like one of the safer pieces of real estate to buy when the market is looking crazy, a lot of people think that the real estate market, the bubble's going to pop soon. And it depends, there's a lot of the same things happening that happened back in 2008 and 2009. He thinks that's not happening and is happening as you don't see like that predatory lending. Yeah. The mortgage loans that are spot. Yeah. So anyway, I don't want to go off too much on a tangent, but yeah. So I, I am I'm with you there a hundred percent. I'm not going to say Cassius king I'm I think I liked the whole new mantra of Cassius trash. No,

David Torrence:
19:29

it depends. It depends on with the a hundred percent. It depends on what you do. There's always context attached to it. It depends on what you do. And I love how you see you kept pointing out. Because there's a difference. And we talked about hyper consumption and not, and unfortunately we have to meet people who are caught hyper consumption and often in this is the funny part. And I'll let you go into your next question. People always ask me David, what should I invest in? They always ask me that. And I always say, what do you spend your money on? That's the easiest way to get investing. Think about what to spend your money and not. And this is my always go to, I have an apple phone. I have a tablet. I have an apple watch. There's a trillion dollar market cap company right there. That's the highest weighting in the S and P 500.

Average Joe Finances:
20:17

They just hit 2 trillion due to truly down there with Microsoft. That's insane. No,

David Torrence:
20:21

No. Apple is almost at 3 trillion. Apple hit 3 trillion already. Apple's already hit return and Microsoft just hit 2 trillion. I'm sorry. Yeah. Yeah. And Facebook too. Facebook

Average Joe Finances:
20:30

just hit two. Really? Yes, they did it.

David Torrence:
20:33

Didn't they just hit 2 trillion. So I always tell people there's a company right there. Where do you buy most of your stuff from Amazon there? Find the ETF that has Amazon and is holding. So you can have direct exposure to it. Like when we're talking about investing is so easy to get started, just think about what you spend and you know what I always say, ladies make the best investors because they're more in touch with the consumer side because they typically

Average Joe Finances:
20:56

do. Yeah. That's fair. And, I liked that. You didn't just say to invest directly in the Amazon, you said find an ETF that invests in Amazon. Cause there's a lot of people out there that don't want to invest directly into a individual or a single stock. And, ETFs and index funds and things like that. And mutual funds. Those are different ways to invest in many different styles. At once and get, a piece of that pie without having to, put the whole thing out and or going for that individual singular piece, you get a piece of the whole pie. You know what I'm saying?

David Torrence:
21:31

No, it's a cheater's coat to the market index. Isn't UTS or cheaters coded into the market, literally.

Average Joe Finances:
21:37

Yeah, no, I like it. I like it. Speaking of cheaters codes, right? So I had asked you for some topics for us to discuss. And one of the things you sent me, so I want to talk about this is, what are your thoughts? Speaking of cheaters codes, right? We're going to talk about games here. What are your thoughts on game stop.

David Torrence:
21:56

All right.

Average Joe Finances:
21:56

Oh, here we go. I can tell you the juices are flowing. Let's go.

David Torrence:
22:00

So when it came, when it comes to game stop In my opinion, I believe gain stock is not a bunch of people in Reddit coming together to push back against the powers that be, I believe

Average Joe Finances:
22:16

there's actually let's get into that actually

David Torrence:
22:19

believe that there is and institutional money behind it. I believe that there's instant. I believe that there's big institutions playing in both. I believe there's big institutions that own, that are buying up the stock, but they're probably buying it out of their personal account, whatever. And then they're also having short term puts on the other side. So if they get squeezed out, they wouldn't hold it on the stock, but they lose right. They, but they're on the opposite side and they're actually not getting squeezed out then winning on the put side on the option side, I believe institutional money is driving it. I do not believe that there's enough retail trades. So push game stop and the way in which has been shared and being pushed. Second thing, I do not believe it's a good investment. I believe it's a great trade. if I'm being honest, the bias, a great trade, not agree.

Average Joe Finances:
23:03

That's not, it's not something that you would buy and hold until your retirement

David Torrence:
23:06

age. Correct? Exactly. And that's what I mean, thank you for giving that context. That's what I mean. Cause important. I'm always trying to make sure I get the concept between trading and investing because people use them interchangeably. They're not. But S but if you know how the trade is a great trade, I did it. It's not a part of my trading thesis. So I'm really big on, I have a thesis for the year and I'm sticking to those parameters and that lets me know where I should be looking where I'm wanting to allocate capital. And also the, where I should be pulling out and where my my sentiment lies within certain industries, certain indexes and certain sectors. I love game stop, and this is the money to be made, but I don't believe that. The people pushing back against institutional investors. I believe there's actual institutional money influencing it more than we think it does. And I, and because both sides have something to win and if you don't believe me, Robin had just went through a really bad lawsuit. And they didn't have another one coming towards them as well. And do time. I feel like there's going to be news coming out about that. We'll see that as a more institutionally driven than people think, because if you think about the landscape of the stock market prior to the game stop, we had a huge run-up coming out of the coronavirus, right? You have arc fund that was doing very well. Everyone made money. It's pretty much easy to make money from March 20 from April, 2020. So January of 2021 money was easy to be made. Yeah, test the snack spit. You have apple top a stock split. There was no where to lose money. Every earnings everything's going jumping up, but what happened was they needed to be a rebalancing. And we saw that in the beginning of this year, we rotate out of tech and we went into what cyclical non-cyclical stocks, defensive stocks, indexes have been ruling the market right now. The S and P is at an all time high. It's been on a tear from. The biggest since 19 some before I was born and NASDAQ is not at all time. And that is at an all time high, but has lagged behind the S and P and the Dow, which is unusual by the way, the dowel is the industrial. So that when I'm talking about defensive stocks to Dallas, Ruben has been really running up. So I know what I'm saying a lot right now, but I'm going to get some jump. I'm saying all that to say Because of all that, and there need to be a rebalancing. I think institutions were really looking to these meme stocks as a way to get there to meet their benchmarks.

Average Joe Finances:
25:17

Interesting. That's definitely interesting because, I don't think so. Neither myself, nor many other people out there were thinking like that. I saw the whole, Reddit thing and the meme stocks and all that other stuff and huddle and all that good stuff that's still going on. When you think about it, it does make a lot of sense that, we're for the, for there to be such a rise in such a big difference that not, there's not enough retail investors. To get it to that point. I think what is it? 90% of the market is institutional. Money 10% is, you and me, the everyday average Joe investor, or trader that's the the other 10%. When you put it into that light, it makes a lot of sense. 10% can make a significant difference, but the hiding on the entire 10% difference, I didn't invest in game stop. You didn't invest in game stop.

David Torrence:
26:12

No, I didn't trade it either. And that's the thing, even. And this is what I tell people. If you think there's enough people to buy it, you got to remember, it's an order for a stock to hold that long. You have to continue to buy it. That's the kicker who, I don't know. I don't know about you, but I don't know whether the people that I know that are working normal jobs day to day, they don't have $200. It'd be buying a stock every day. That's almost yeah. Or car bill, if I'm no one has, I don't really have money to buy a stock. Every, that same stock every day for this amount of time that has been held up this long there's no, that was just retail traders doing that or behind it. So I called BS to the news that says it is and if someone thinks I'm wrong, I would love to see the backs to prove, because I just don't see the numbers adding up.

Average Joe Finances:
27:01

Yeah. I like it, and I think part of it too, is. Yeah, you get fed information every day from the news, from all the different media outlets, news articles, online TV, CNBC, and all that stuff. And as you're sitting here watching this stuff, you keep hearing that it's the Reddit crew. It's these guys, the diamond hands crew, and you keep thinking, oh wow. These guys are really sticking it to the man. But at the same time, it's you know what you're saying? Makes perfect sense. Like how are you maintaining at this point? Cause I can tell you right now. If I had game stop at $20 a share and I had that many shares that when it jumped up to 370, Okay. Those diamond hands are crystallizing and melting because I would've been like exactly like here on $40 million and be like, I'm going to hold 40 mil at a, stick it to the man. Nah, man, I'm selling find my sailboat and I'm outta here.

David Torrence:
27:52

Correct? Human psychology tells us people whether it's a prophet a long time ago and remember it and for the viewers Stock price usually changed by supply and demand. So if everyone's selling all their shares from making a profit, the stock crashed typically.

Average Joe Finances:
28:08

Yep. Absolutely. And it did dip a little bit. That's probably all the re all the the individual investors sitting out there selling their own stocks and getting out when it was so high. Now I know some people that traded GameStop and AMC and all those Blackberry, all the meme stocks. And Every single one of them, I'm pretty sure. Or out now of my friends that I know that bought into that stuff. I think part of this whole thing, I want to kind of transition into something else that you wanted to talk about. Because we talked about, I want to rewind back to that. One of the fundamentals we started with, which was education. And the thing that got you started and how you learned how to trade. And how important that is with education. One of the things that you and I talked about was at what age, like you asked me at what age did I realize, that I needed to make this change. And I, I told you significantly later than when you realize that, one of the topics you wanted to discuss. And I love this topic is teaching children about investing, right? And for me, it's about. Just teaching them financial and fiscal responsibility. And this is something that you don't see in public education. Now my, my children are homeschooled, and part of our curriculum is financial literacy. So we make sure they understand how to make a budget out of pay bills and things like that. I'm teaching them at a very young age. So that when they do move on out of the house at the age of 18 or 30, or whenever they want to leave, cause I'd like them to stay as long as they can. They love them. They're awesome. But at the same time, it's I want to know that when they walk out the door for the last time, for that, they're not going to be sleeping under this roof anymore. That I have set them up for success. And not that I'm just going to give them money and go say, Hey, go live your life. I, I invested enough for us all, so here you go. No, I want them to go out and learn and earn themselves. So getting into the topic of teaching children about investing, what is it about that you're passionate about? Yeah.

David Torrence:
30:08

So I'm really passionate about that because I'm in my household and many people that I speak to dad is usually the breadwinner. And that makes the money and the family is just a comfortable, and that's typically, or right where you struggle and mom does what she can to make money and you go about life as such. So one of the things that I'm really passionate about and I care about is teaching children about investing in my nonprofit. That's what we're able to do. I created a stock market activity. It's called the wash street twins. And it's basically the entry level weight of kids to learn about the stock market. So they learn what time the market opens. They learn what a bull market is, what a bear market is, where the asset is a liability and not through words through illustrations. So I'm really passionate about that because kids, unbeknownst to parents, you can teach your kids as soon as the age of six, about how to invest is very simple. What does green mean? Green means. It means down, they can stay know the color and signal over a candle stick right there. But what does a bull market? It was a bear market, mean things of that sort. How many sectors are there in the market? There's 11. Those are cool. Little fun facts. You can teach your child name, a company in the stock market, apple right there on your tablet all the time. What's another company you can invest in Tesla. There are no, that's a car and all you're doing right now is just teaching them. The basic illustration and the lingo of investing, because if you can teach your child that lingo that's half the battle. I believe that investing for a long time was not meant for the general public. So there was a high barrier of entry because of the language you hear inflation here, quantitative easing these words pushed back oh, there's too much. Or if you are into it, you don't want to learn enough about it to get good at it. You just know you want to put your money here and you make this some return you get out and you try to do it again with the ducks, but you really don't get into the Nicks and crevices of it. So I'm really passionate about teaching children about investing, because I believe that's how we bridge the wealth gap. I believe that we can bridge the wealth gap by starting at a young age and just introducing. To the images, right? Many kids learn through images. They don't know a kid doesn't know what an app they don't know when they say apple, L C a P L E C a big red thing where low stem at the top. It's the illustrations in which we should be teaching kids. So we should use that traditional way of learning as our forefront of how we teach them about.

Average Joe Finances:
32:26

Yeah, I love that. That's absolutely amazing. And you're doing that right now with your nonprofit and that's called KP cares foundation, right? Correct. Yeah. David that's phenomenal, man. So you're doing things right now. I know in your bio, we talked about, you're also a philanthropist and everything the fact that you're giving back. So much is it has, it carries so much more meaning than just this conversation that we're having. You know what I'm saying? So it's there's power in that and, part of that is, you're going to get that back in abundance. What you're giving back. It's amazing. When you can give back to a community or you can help others, how much you get back in return for that. Not, and it's not just like a self pat on the back or the gratification you get out of it, but that is definitely nice. That you're you, it makes you feel good when you're able to help other people, when you can actually see the difference that you've made and children in the future I, I'm going a little bit down a rabbit hole here, like when you're a bit older in age and you start seeing some of these kids that, that read your book or learned about stock market at such a young age, thanks to, listening to you or advice that you've given in the past, and you're sitting there in your rocking chair one day and you're like, yeah, being these kids just being successful entrepreneurs. And that you had an impact on that, man, what a way to have a good life? You know what I'm saying? Yeah,

David Torrence:
33:43

no, I agree. A hundred percent and I don't have children yet, but you know what I, another reason I wanted something for my kids, I need, that's how I got, so I was like I wanted to make sure my kid is just as good as I am. How can I get them to be 27? How can I get them to learn? And that was kinda the initial thought process. And if I can make another statement in addition to that I want to step through. Currently I have three youth investing programs that will be starting this year. And the reason why I'm really happy about those is for two reasons, number one, the human capital in which I'll be giving them in terms of them learning and their intellectual property. The second thing is through these investment programs for being in a six month program we have a sponsored that have Sponsor each kiss or east care, we'll be starting off with $350. And I will invest that $350. And at the end of the program to have a scholarship waiting for them to start their real investment account with a lot more. So that I'm so not only am I able to give human capital, but I'm also able to give equity to the communities in which I want to see do better. Cause a lot of times parents don't have that extra money or free cash flow, sitting to the side to get their kids started to buy a couple of shares of apple to start a custodial account for their child. You go through this program, you learn for free, we'll find the investors and the people who want to invest in you. And we'll put that capital use. No, I have a scholarship waiting for you at the end. One of the programs, we went a little step further. They get, instead of a scholarship, they have crypto waiting for them. At the end of the program, we're going to give all of them at one token of a theorem, which took about $2,000 right now. So we're really giving equity, not only human capital to these students. And that's something I'm really happy about. I'm not just giving them encouragement. I'm giving them the money so that they can do it. And because they are so young, the thing I didn't throw in there, these are one of the programs high school. They won't get that money today, finish high school. So that's one of the criteria you have to finish high school. So this is a three-year investment. That one, you can go really long after three years. So we're talking about some fantastic, we're talking about, enough money to buy a car, enough money to put down in the house type money for these kids. So it's going to be really something special. It's going to be really small cause that's the only way we'd be able to have it run efficiently and them really learn, but I'm really excited by it. And I feel like that's going to be my moment where I feel like, I'm really making change and impact when I'm able to give this equity and human capital to the community. Not just a good word.

Average Joe Finances:
36:06

Yeah. David, I love that. That's going to be your legacy right there. That's amazing. I'm hoping, I'm hoping that. With what they learn in the class that they're going to take with you, that when they do graduate from high school, that they don't just go buy a new car or something like that, that they actually can't exactly invest

David Torrence:
36:23

in best.

Average Joe Finances:
36:25

Yeah. That's, if you're talking about making an impact in the world, that's making impact right there. And what ages at that they start to, they start this at night in ninth grade. Is this

David Torrence:
36:36

so two of the programs that we'll be starting high school in 10th grade. And then after the six month investing program, From there, they were going to two year internships for the junior and senior years. Those internships will be geared towards careers where you don't need a college degree, such as being a realtor, being a CPA. These are great industries. They can go into that. They don't have to go to college for and make really good money to live a really good lifestyle. And guess what, they also have that scholarship money at the end that they can use, to start that business up. And they'll already have all the experiences that. So they're have, they're becoming out of high school, productive citizens in society who are ready to invest in themselves and invest in their business. And then the other program is for children who have aged out of foster care. So we're talking 18 to 21. That program is a year long and that's the program where they would be gifted crypto, as opposed to the scholarship. And then that program said, because there's a lot of people, I know that there's a lot of kids that age out of foster care and ended up becoming homeless. So you have these programs such as dash to freedom here in Miami, where they have they provide housing for these students, so they can transition to productive adults in society. And then they brought me in, through my nonprofit to provide the expertise of investing, to teach them that.

Average Joe Finances:
37:47

I love it, man, that, so what you're doing right now you do it with a passion. And I feel like if you're going to do anything seriously in life, you have to do it with a passion. And you're definitely passionate about it, man, David, this is absolutely amazing this whole conversation and everything that you're doing I'm absolutely thrilled, to be talking about this stuff with you. So I want to ask you, cause as time's getting short here, or for somebody who's just now getting ready to get started and some well, we're talking about like our younger audience here, right? The, the young men and women that are in their twenties and thirties that, Hey, I just paid off my student loans or I just got out of debt and now I'm ready to start investing. What would you say to somebody in that situation? For what they should look at doing today?

David Torrence:
38:33

Very simple. Find a certain amount of money. I will say this look lower, your consumption, lower your consumption. B B. Okay. I'll tell you right now. I, my car is paid off and I every will always, I've all, I've never made payments on the car. That's because I've never felt the need to show off that I have money via my car. Lower your consumption, lower. Thank you need to show people in terms of what you have but understand and live below your means for a few years and invest. When are, where do you invest in what you consume? So if you have apple invest in apple, if you believe in crypto, invest in Bitcoin, that they remain Cardon. Those are the best ones to invest in. Why? Because they're the most disruptive and they have, they actually bring something to the world in terms of what we do and application. That's why we do it and invest in it in. NASDAQ doubt or SAP invest in index, invest in a stock, invest in a crypto and buy every month. You love yourself for it in 10 years.

Average Joe Finances:
39:34

Definitely. Sounds like key thing you're talking about here is diversify. Don't just put it right. Awesome, man. So everybody look king David here. We had an awesome conversation. This has been amazing. There's going to be people listening to this show that want to know more about you. They want to know about more about your consulting. They want to know more about your nonprofit. So where can people go to find more information about king Dave and everything that he's doing? So do you have a website, social media or anything like that you can share with them?

David Torrence:
40:03

Yeah. So you're like to personally find out by me, please look me up on LinkedIn. Under David M Torrance, in terms of my nonprofit, you can go to KP system.org or our social media or Instagram, kp.ca. And if you want to listen, look me up on Instagram as well, personally, from CG as well as David M Torrance, anything Dave, all my social media is under David M Torrance, my personal name. So easy for me, for people to find out. But LinkedIn, you can find my credibility and all that. That's a big, that's big thing in investing. People want to see that you're credible and reputable. So I like to give him my LinkedIn just so that people can find that information.

Average Joe Finances:
40:40

Absolutely. I love LinkedIn. It's a powerhouse. I feel like some people it's under utilized, I would think in the professional space. Absolutely love it. David absolutely loved everything that you're doing. Rebuild that you took some time out of your day on a Saturday to have a conversation with me and share your story and share what you're doing. It's been an absolute blast. So everybody that's listening, go check out the websites that he talks about in his social media. I'll make sure I have links to all that in our show notes, to make it easy for you to just copy and paste it. Yeah, definitely check out the stock market activity book that he made here. And actually, if you could send me a link to that where we can buy that at two I'll make sure I get that in the show notes. Cause I'm probably going to get a copy of that for my daughters as well. So

David Torrence:
41:22

yeah. Yeah, that'd be cool. You can buy the, Amazon's just look up stock market activity, book, wall, street twins. It's available on Amazon.

Average Joe Finances:
41:30

Yep. All right. Fantastic. Yeah. I'm gonna I'm serious. I'm going to go check that out and pick it up. Everybody, so there you have it interview with David Torrens here. Absolutely amazing. David, thank you so much. And we'll chat again in the future. I'm sure. All right. Peace of love. Thank you.