We’re Sean and Kaj, two Navy veterans (intelligence officer /SEAL, respectively) who started a company to help build financial health and wealth for the military community. Ask us anything!

Submitted by kajlarsen1 t3_ysg7ki in IAmA

Hey Reddit! Happy Veteran's Day! We’re a pair of Navy veterans, who were in the service for a combined 21 years. Kaj Larsen has 13 years in the Global War on Terror as a SEAL officer with multiple deployments to the Middle East, Africa, and Asia theaters. Sean Bonner is a 20 year Wall St. veteran who after 9/11 joined the Navy Reserve Intelligence officer corp at 32 years old.

We teamed up exactly a year ago to build a financial platform for veterans called Guild. What we saw was that Wall street and the private wealth community had left the military behind. Most of the financial services for military and veterans were just bad. The result: a lack of financial literacy in the military community and service members being taken advantage of. But we thought that was fixable, hence Guild.

Happy to talk about all things veterans, financial, SEALs, why Navy will win the Army/Navy game, or anything else in our world. In March and April, both of us were on the ground in Ukraine, doing our part. In our non- service lives, Sean spent a career as a fund manager and trader. Kaj was a journalist and filmmaker with shows on HBO and Netflix.

Ask us anything!

Proof: [Kaj](https://imgur.com/a/MC0gSR0 (Kaj); https://imgur.com/a/w661H1p (Sean))!

Edit: Thanks everyone! Really enjoyed this, and hope everyone has a great Veteran's Day!

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2ReddYet t1_ivyy9jg wrote

One of the major headwinds to building wealth is advisor/fund fees. What do you charge?

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kajlarsen1 OP t1_ivyyn2c wrote

Great question w/ an easy answer: We're a commission-free platform. We don't give financial advice, and we don't charge fees.

And totally agree w/ you on fees being a financial headwind. They're a tax to wealth that never goes away, and they can add up to huge dollars over time. Which is why we built Guild the way we did.

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TinyDKR t1_ivz0rb4 wrote

So, you must use payment for order flow?

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seanbonner_usa t1_ivz1eqv wrote

That is a great question. Actually, we don't currently but that does not mean it is a bad model. Retail investors save $ billions under that model as compared to the commissions they were paying.

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TinyDKR t1_ivz2o6r wrote

It's a terrible model designed by Bernie Madoff that guarantees retail does not get a better price than the middle man. Good to hear you don't use it.

So, if there are no commissions, no advisory fees, and no PFOF, how do you keep the lights on? Are you selling your own mutual funds or ETFs with a relatively high expense ratio? Or do you charge commissions for options/derivatives?

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seanbonner_usa t1_ivz335p wrote

We don't sell any funds or ETFs.

Crytpo has a small commission attached, but I am not a fan.

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TinyDKR t1_ivz68vw wrote

What are your other sources of revenue?

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seanbonner_usa t1_ivz6jgk wrote

Revenue- we don't need no stinking revenue. We are a tech company!

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TinyDKR t1_ivz7o8e wrote

Tech companies have to keep the computers turned on, and I'm bothered by your question dodge.

Are you making interest from your users' credit card debt?

Are you lending out users' shares to short sellers? Do you allow your users to short sell?

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seanbonner_usa t1_ivz9qkd wrote

>But we do make money from traditional business lines in the brokerage industry, mostly linked to asset and cash balances on the platform.

We don't offer credit cards and don't have short selling. Stock loan is another traditional line of business we do not currently use but will as we grow.

As we scale, we keep the lights on from the outside capital we have raised while we prove product market fit.

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TinyDKR t1_ivzd2y8 wrote

Thank you.

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nowyourdoingit t1_ivzg24s wrote

His non answer is an answer. Whatever the founders' intentions, the outside capital wants a return which means they're either going to become predatory or they'll sell their platform and users to someone who is.

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TinyDKR t1_ivzh1gm wrote

Oh, certainly. The biggest red flag is his praise of PFOF.

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seanbonner_usa t1_ivz8b6s wrote

But we do make money from traditional business lines in the brokerage industry, mostly linked to asset and cash balances on the platform.

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UndergroundReborn t1_ivyzqzd wrote

Considering the Intel background, what should veterans do to prepare for economic impacts of foreign conflict?

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seanbonner_usa t1_ivz1316 wrote

Foreign conflict will generally lead to some form of inflation. However, what is known as the War Paradox says that war is generally good for the US stock market.

But it comes back to basics. Have enough cash to cover emergencies. The cash you won't need in the next 24 months; get it invested. It is your only chance at keeping up with inflation.

This year has SUCKED for the stock market, but we have had many years of massive returns, and this year stocks are on sale for the long-term investor.

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Rabbbittz t1_ivyvv5o wrote

Do you get any support from the government for Guild?

You're now the second group of veterans I've run across doing something like this, and its appalling to me you have to take matters into your own hands to support people who serve our countries.

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kajlarsen1 OP t1_ivyy0fk wrote

We do not receive government support for Guild directly, although lately DOD has recognized financial literacy as a critical national security issue. We built our company precisely because we recognized there wasn't a company serving the military community for personal wealth, and because candidly DOD is doing an inadequate job of teaching financial literacy to its service members.

That by the way is not a knock on DoD, and I believe the Pentagon would agree with us. We have the former SECNAV join the board of our company precisely because he agreed it was necessary for the private sector to help with this effort. He recognized this issue during his tenure and is supporting us in helping close the wealth and knowledge gap.

We (Sean and I) identified this wealth and knowledge gap independently. Sean understood it from a Wall St. perspective. Especially when he was serving as an intelligence officer in the Navy and everyone at his command from the E-1 to the CO was soliciting his advice as someone who had owned and run successful investing businesses. For me, I approached it from the lens of Veterans service. I had helped found two large VSO designed to help veterans with a sense of mission and purpose. I realized during a decade of this work, that purpose was important but so was purse. Veterans (and active duty) needed this kind of support. If the government wasn't doing it effectively enough, we felt compelled from a mission perspective to fill the gap.

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Rabbbittz t1_ivyzity wrote

Thanks for sharing. It's a phenomenal and much needed initiative. Wishing you two all the best.

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kajlarsen1 OP t1_ivyzq88 wrote

Thank you so much. That really means a lot!

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freelcpl t1_ivyzlkk wrote

Can you share some thoughts on career starter loan availability for Officers compared to the Enlisted personnel they manage?

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kajlarsen1 OP t1_ivz0vo3 wrote

Interesting question. Candidly I havent studied this that much. My assumption is that because officer base pay is higher, they have access to more capital, at least thats how I'd guess it works. My actual practical experience is that most financial products available to service members are borderline predatory, or in fact super predatory. (When I started Guild I mapped the distance from the front gate at Ft. Benning, GA where I attended Basic Airborne Parachutist School, to the the first used car dealership with a super high interest rate. It was .6 mi.)

Beyond the predation, I think theres a cultural issue, too. At USNA 2/C get that car loan (even though they are being paid an E-5 equivalent salary) and almost everyone takes it. Young service members buying cars outside their means is not a problem exclusive to the military community but its exacerbated by that consistent government paycheck that lenders love!

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freelcpl t1_ivz27ps wrote

Great insight! Base towns are all the same :(

It seems that the big “vet friendly” finance institutions squeeze the young crayon eaters with low volume high interest rate loans to offer bigger, lower interest rate loans to military leaders. It’s pretty traceable to when enlisted recruit “training” depots opened.

I’m Very thankful for your transparent approach to this issue!! 💪

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kajlarsen1 OP t1_ivz68wg wrote

Wow, this is fascinating. Im going to look deeper into this!

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rajannike111 t1_ivyuqd0 wrote

How did you decide to join navy?

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kajlarsen1 OP t1_ivywlvx wrote

Awesome question. Its funny, in hindsight things appear to be a straight line, but in reality the path is more circuitous. My grandfather served in the Navy in WW2 and my great grandfather served in the Tzars band in Russian army. My father is a Devil Dog (Marine hoorah) so there was a natural inclination to serve. I went to the Naval Academy intending to be a pilot (too much Top Gun), then found this other community that was the right fit for me. One that suited my background and skill set and personality.

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backcountrydrifter t1_ivyvr6i wrote

Small world. Almost met up with you two in Ukraine via Jake

The big question for you both, but Sean in particular- do you think that Wall Street as an institution can be repaired enough to regain credibility or is an opportunity for an evolution to a decentralized format of investing?

Wallstreetbets showed the fatal flaw in over volume trading. In your opinion, can the USGOV / SEC move quickly enough to repair their failings in that arena?

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seanbonner_usa t1_ivyycja wrote

That's crazy, we ran into so many US Vets over there. I actually had a guy stop me on the street in Lviv, which was a little sketch since it was early day of the war.

you nailed the issue with Wall St. The real story around Wall St bets was people's lack of trust in Wall St and their desire for a trusted community in the investing world. That was a big reason we built Guild as a transparent platform with financial education.

You should not gamble with your investment accounts and day trading is just that. You should invest for the long term. I am not sure what the SEC can do than to ensure a level playing field. I think the private markets are trying to do that with Apps like Robinhood, Acorns and of course Guild.

But Trust is everything.

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backcountrydrifter t1_ivz4blf wrote

One of the projects we put together in Ukraine is a direct investment platform for Ukrainian farmers and small business.

Logic being- when war pops off all the bankers run for the coast. And crowd funding dries up like a drought at 90 days. But every war is eventually a war of economic attrition.

Ukraine proved they are stopping, so every dollar invested would be like a bullet shot 3 times.

We put together a portfolio of 7 million Ukrainian farmers that are still farming, they just need operating capital. And 10 million small businesses are supplying them in real time.

My buddy that introduced me to Jake was a CFO for blackrock so we thought- why not cut out the middle man?

Famine is coming. Investing in a farmer at 10% just makes more sense than diluting it into a compromised system controlled by a handful of hedge funds and brokers.

Before peer to peer money transfers it wouldn’t have been possible. But with the technology that comes with a 100% transparent DAO, and using Bitcoin and ethereum as the means to move capital fast with a fully transparent, open source backend and 98% efficient org structure, we could rewrite the rules of humanitarian aid.

From there it morphed into something bigger. Jim Mattis whom I respect immensely, was pulled into the theranos debacle because he trusted “authorities” in the financial sector but didn’t really know blood testing. Who does? Turns out a handful of scientists in that sector of healthcare but not really anyone else.

But if you rewrote the rules to Wall Street so that people could invest directly in the things they know and are passionate about, with a social media platform that looked like Instagram but functioned like Robinhood so you could watch your investment grow, identify issues early and effectively crowd source accountability, you could change the game forever.

And at the same time make waging war so financially unproductive that the rest of the world could just stamp it out by investing in the side of righteousness.

I was hoping to buy you guys a drink in Kyiv and get your thoughts. Nobody knows how predictable war is like soldiers. I think there is power in that and making some incentivized peace while we are at it.

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seanbonner_usa t1_ivz5mzv wrote

We have thought along the same lines for a while. You only have to see the cities in ruins from shelling and miles of farmland left empty due to mining to know there is a huge economic need away from bullets and bandages.

Ukraine has 2 powerful industries: farming and tech. Capital needs to go to both to get thier economy back on track. I have called it the Plate to Plate need. First the Ulraininas need ballistic plates to defend the nation but soon they will need to find ways to put food on their dinner plates.

Would love to dicsuss it. Through our foundation we actually have 2 Ukraininas coming to the US for medical treatment.

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backcountrydrifter t1_ivzt43j wrote

I think I have your number on signal but I’ll DM you mine now. I think we may be able to help each other and most of all, the Ukrainians.

And I have a few connections to share for the financial literacy side too. It’s absolutely embarrassing to me how much we neglect our vets. I will do anything in my power to help You guys right those wrongs.

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ALR1311 t1_ivz4cm8 wrote

Congrats for your first-year anniversary. I heard Guild started a foundation and is doing some important work. May I ask what it does?

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kajlarsen1 OP t1_ivz61vd wrote

>Thank you! I answered a similar question below, here was my response:
>
>
>
>Its been a wild year, but we are super proud to be able to continue to serve the military community.
>
>The Guild Foundation is just another tool in the tool kit that allows us to support our mission of increasing the financial health and wealth of the military community. The non-profit side is mostly focused on the education and financial literacy piece. We are trying to make everyone better investors, better strategists for growing wealth, and protecting assets. We are obviously focused on the military community and there are some unique aspects of military money, but most of the curriculum is just good financial practices delivered in a digestible way. Outside of the military there is a large need for finlit, but critical for those who have worn the cloth of the country. Can certainly make the argument there is nobody more deserving to participate in fruits of the American economy.
>
>One of the best things we have been able to do at the Foundation is take this show on the road. We have been touring the country going to bases and units to do in person financial literacy training. Just so much more effective when you can get in front of room of 150 sailors or marines and tell your story and then deliver the information. Its also the most fun part of the job!

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CrassostreaVirginica t1_ivyusr2 wrote

What were you doing in Ukraine?

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kajlarsen1 OP t1_ivyvm4t wrote

Humanitarian work. We (Seanbonner_usa and I) went over early days in the war. We were boots on the ground for about 2 mos helping. Primarily I had a strategy I called "No empty trucks." I would drive in medical and humanitarian supplies (even dog food sometimes) to the frontlines, then I would rescue people who needed to flee the fighting. So supplies in, refugees out. That was critical during the early stage of the war, and candidly some of the most important work I have ever done.

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seanbonner_usa t1_ivyvjf6 wrote

Short answer is a little bit of everything and a lot of work. The longer answer is delivering humanitarian aid and advising elements of the Ukrainian military.

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terella2021 t1_ivyuz09 wrote

can you suggest three things military members and their families can do to overcome what we facing right now, as what news outlet says recession and inflation, how will Guild can guide in this situation?

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seanbonner_usa t1_ivyxgag wrote

First thing is get a good understanding of your budget and spending needs- not wants. it is important to remember that you can't invest until you can save.

Secondly, take advantage of all the military financial benefits such as the using the TSP in the Blended Retirement System. Depending on your level of service you get up to a 5% match on your investment. That's free tax-free money. The new retirement system is like a private sector 401k so even if you don't do your 20 years you can take it with you. The other the VA mortgage. You can actually use it to buy a building to rent out 4 apartments - as long as you live in one unit for a year.

Third, invest outside of the TSP. The match is its best benefit but its investment choices are limited. So, use the VA mortgage to get you started in Real Estate. But the easiest and most proven investment for the long term is a portfolio of US stocks. Long term returns hover around 10% so it is your only shot a battling inflation.

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BigFishShaggyDog t1_ivyw562 wrote

What was your favourite part of Kyiv? I hear it has a darkside.

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kajlarsen1 OP t1_ivyyley wrote

Love Kyiv, and love the Ukranians. When I was there during the early days of war, it was all darkside. The amount of shelling happening every night was staggering. Most of my work was outside of Kiev or done at night, but Im looking forward to going back and seeing Kiev in the light.

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PeanutSalsa t1_ivyu1bd wrote

What do you think are the most important ongoing global issues the world's population doesn't know a lot about but should learn and be taught more about?

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kajlarsen1 OP t1_ivyuzzl wrote

Great question! I could go all day with this (sadly) but let's do two to start...

- Ukraine -- People know about it, and I just spent boots-on-the-ground there. I don't think people get the contagion effects from it -- everything to food to energy. Even if there was a ceasefire tmrw, you'd still have explosive ordinance, which will potentially be a multi-decade problem.

- Pollution/environmental pressure -- A lot more people know about this issue, but the local effects of this are kind of crazy. I just did a sea turtle conservation mission. Basically, not enough sea turtles means too many jellyfish, which throws off the balance of the entire ocean ecosystem. It's another case of one issue having multi-order effects.

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IAmAModBot t1_ivyvacn wrote

For more AMAs on this topic, subscribe to r/IAmA_Military, and check out our other topic-specific AMA subreddits here.

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[deleted] t1_ivyx5no wrote

[removed]

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UndergroundReborn t1_ivyz1su wrote

Sean/Kaj, nice to see some of the discussion here this is Dawson from r/freelancecorporal just hopping in. Wanted to ask what brought Sean an interest for intelligence and how that played into building Guild?

Also: Free Meals for Veterans Day Free Meals

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seanbonner_usa t1_ivz0csk wrote

Dawson- good to see you here.

My path to the military was not a straight line. After 9/11, I wanted to go and serve, but I was 30 years old. After doing some research, I found out about the Navy Reserve's Direct Commissioning Program for Intel Officers. I thought that sounded cool and it would get me in the fight faster (Not true). I knew next to nothing about Navy Intelligence other than James Bond was a British Navy Intel Officer. But the more I learned, the more it was clear the skills I had on Wall St were directly transferable to Navy Intel. In fact, what I learned about collective intelligence and intelligence operations influenced how I looked at data on investing later in my career. it was also the fundamental thesis for the Guild Platform.

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UndergroundReborn t1_ivz2id1 wrote

Glad to see I’m not the only one who views all things finance from the seat of an intelligence community member

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SlickMaestro t1_ivzzksy wrote

If you had to serve in any other branch, which would it be and why?

And are there any stereotypes about the Navy/SEALs that are true?

Happy Veterans day!

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kajlarsen1 OP t1_iwghe8x wrote

Sorry for delayed response, I didn't realize I could keep answering after the live AMA ended (thank you for teaching this ol dog new tricks!). Surprisingly I dont think Ive ever been asked this before, but it does open up a whole can of potential jokes! Would I join the Mens department of the Navy? Chair Force? Big green machine?

All jokes aside, for me the question is a little more about which other component of the Special Operations Community would I join? Marsoc is the new kid on the block and advancing really quickly, but I would say the Marine Corps is my dad's service and sometimes the Marine Corps is too hoorah for my style (no offense, the fleet navy is the same way for me). Plus I look terrible with a high and tight and the Marines are pretty serious about their grooming standards. Army is great, and I love the SF ODAs and their mission and culture. All the door kicking, but they tend to be older and wiser than my community in the SEAL teams. Quite honestly Im not sure my language skills are up to par for SF. I would have to work real hard. That leaves AFSOC. The AFSOC community is the least known of the special operations component, but really interesting. At this stage in my life, the AFSOC emphasis on Pararescue I think would be my second choice behind Naval Special Warfare. Every PJ/Pararescue person I has met is the ultimate professional, and I think the mission and training is really unique and high speed. So gun to my head, yeah, Air Force (plus the golf courses are great).

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jarlrmai2 t1_ivyu05x wrote

How'd you vote?

−1

kajlarsen1 OP t1_ivyufj9 wrote

I make it a point not to vote-and-tell ;-)

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pscarlato t1_ivz3md5 wrote

>Congrats guys on the one year anniversary. Great job.
>
>I heard that Guild started a foundation and is doing some important work. Can I ask what it does and for you to talk about it a bit?

2

kajlarsen1 OP t1_ivz5fsf wrote

Thank you! Its been a wild year, but we are super proud to be able to continue to serve the military community.

The Guild Foundation is just another tool in the tool kit that allows us to support our mission of increasing the financial health and wealth of the military community. The non-profit side is mostly focused on the education and financial literacy piece. We are trying to make everyone better investors, better strategists for growing wealth, and protecting assets. We are obviously focused on the military community and there are some unique aspects of military money, but most of the curriculum is just good financial practices delivered in a digestible way. Outside of the military there is a large need for finlit, but critical for those who have worn the cloth of the country. Can certainly make the argument there is nobody more deserving to participate in fruits of the American economy.

One of the best things we have been able to do at the Foundation is take this show on the road. We have been touring the country going to bases and units to do in person financial literacy training. Just so much more effective when you can get in front of room of 150 sailors or marines and tell your story and then deliver the information. Its also the most fun part of the job!

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freelcpl t1_ivz2t5x wrote

Mail in ballot - black ink stick. You?

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