# How Much Money Is Enough? Plus, Why AI Won’t Replace Financial Advisors — with Jack Raines > Source: > Published: 2026-07-27 08:00:00+00:00 - AUM (Assets Under Management) - The total market value of assets a financial advisor or firm manages on behalf of clients; advisors typically charge a percentage fee (e.g. 10–100 basis points) on this figure annually. - Basis points - A unit of measurement equal to one-hundredth of a percentage point (0.01%); commonly used to express investment management fees and interest rate changes. - Compounding - The process by which investment returns generate their own returns over time, exponentially growing an asset base; often described as 'interest on interest'. - YIMBY - Yes In My Back Yard — a movement advocating for increased housing construction and density in existing neighbourhoods, in opposition to NIMBYism. - NIMBYism - Not In My Back Yard — the tendency of existing residents to oppose new development (particularly housing) near their homes, often to protect property values. - Tax efficiency - As used in the episode, a polite term for legal tax minimisation strategies such as tax-loss harvesting, borrowing against assets instead of selling them, and using trust structures. - Index fund - A passively managed investment fund that tracks a market index (e.g. the S&P 500), typically with very low fees; contrasted with actively managed funds that attempt to beat the market. - LLM (Large Language Model) - An AI system trained on massive text datasets capable of generating human-like text; examples include GPT-4 and Claude. Used in the episode to refer to AI financial guidance tools. - Agentic AI - AI systems that can autonomously take multi-step actions (e.g. placing trades, scheduling tasks) without continuous human instruction, going beyond simple question-answering. - GRC engineer - A Governance, Risk, and Compliance specialist who ensures an organisation's operations adhere to regulations and internal policies; referenced in the Vanta ad. - Mimetic - Relating to imitation or mimicry; in the episode used in the sense of René Girard's mimetic desire — people want what others around them want, rather than forming independent preferences. - Financial nihilism - The belief, prevalent among younger generations facing structural economic barriers, that long-term financial goals like homeownership are unattainable, leading to short-term spending instead of saving. - House poor - A situation where a homeowner spends such a large proportion of income on housing costs that little remains for other expenses or enjoyment. - Book (financial advising) - Informal term for a financial advisor's client portfolio — the roster of clients whose assets the advisor manages and from whom recurring fees are earned. - Psychic return - Non-monetary satisfaction or emotional wellbeing derived from a decision or asset; Scott Galloway uses it to describe the sense of security and identity that comes with homeownership. - Sequestering - To isolate or set aside; used by Scott Galloway to describe how housing permit authority has been fenced off and placed in the hands of existing homeowners, limiting new construction.