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The #1 Wealth KILLER
Jason 0 Comments Retire Wealthy
Albert Einstein once referred to compound interest as the 8th wonder of the world. Saying he who understands it earns it; he who doesn’t pays it. And he couldn’t have been more right. Today we’re going to be looking at the miracle that is compound interest and how can protect my retirement as it relates to the #1 killer of your wealth. Let’s get started. So the #1 wealth killer is debt. Yeah, I know, big shocker. But it’s really true and today we’re going to look at why that is.
The truth is, having too much debt can put a limit on your greatest wealth-building tool – your income. While it may be tempting to invest rather than pay off your debt, compound interest is a force to be reckoned with. In fact, I recently dedicated an entire video to its power. Financial advisors often use the example of Jane, who invests $100 per month ($1,200 per year) from the age of 18 to 25 and earns an average of 10% per year on her investments. By the time she stops investing at age 25, her nest egg will be worth just over $15,000.
However, before you start investing, it’s important to consider your debt load. Here are some reasons why paying off your debt first may be the smarter choice:
High-interest rates: Many forms of debt, such as credit card debt or personal loans, carry high-interest rates that can negate any potential investment gains.
Risk: Investing always carries some degree of risk, and if you have high levels of debt, taking on additional risk may not be advisable.
Stress: Debt can be a significant source of stress and anxiety, which can have negative impacts on your overall financial well-being.
Freedom: Paying off debt can give you a sense of freedom and control over your financial situation, allowing you to make better long-term decisions.
That being said, paying off debt doesn’t mean you can’t invest at all. Here are some steps you can take to balance debt repayment and investing:
Create a budget: Determine how much money you can allocate towards debt repayment and investing each month.
Focus on high-interest debt: Prioritize paying off high-interest debt first, as this will save you the most money in the long run.
Consider employer-matched retirement accounts: If your employer offers a retirement plan with a matching contribution, take advantage of it. This is essentially free money that can help you save for the future.
Seek professional advice: A financial advisor can help you create a personalized plan that takes your unique financial situation into account.
In conclusion, while compound interest is a powerful tool for building wealth, it’s important to consider your debt load before investing. Paying off high-interest debt should be a priority, but that doesn’t mean you can’t invest at all. By creating a budget, focusing on high-interest debt, taking advantage of employer-matched retirement accounts, and seeking professional advice, you can balance debt repayment and investing to achieve your financial goals.
Over the course of the next 45 years, those investments will continue to grow. Assuming that it continues to grow at an average annualized rate of 10% per year she will end up with $1.1 million in her portfolio at age 70. That’s all achieved with eight years of investing $100 a month. Jane becomes a millionaire by investing $9,600 of her own money. On the other hand, we have John. John doesn’t start investing at age 18. Instead, he starts at the age of 26 (just after Jane had finished all of her investing). He also invests $100 a month. However, unlike Jane, he does it from the age of 26 all the way until the age of 70. John invests $54,000 of his own money over the course of those years and ends up with a nest egg of just under $950,000. So John ends up with approximately $150,000 less than Jane. This is in spite of the fact that he invested six times more of his own money than she did.
It’s no secret that excessive debt can put a damper on your ability to build wealth using your most powerful tool – your income. While the concept of compound interest is widely known to be an effective way to grow your money over time, paying off debt may seem like a counterproductive move. However, it’s important to remember that not all investments are created equal, especially when you’re dealing with debt payments.
Let’s take a look at an example: Jane invests $100 a month for 7 years starting at 18 and ends up with a net worth of $1.1 million at the age of 70. Now, let’s say John starts investing $100 a month at the same age and earns an average of 10% per year, just like Jane. Even if John continues to invest until he’s 100 years old, Jane would still have more money than him, and her lead would only increase with time. In fact, at the age of 100, Jane would have $19.2 million to her name, while John would have $16.7 million. This just goes to show the power of compound interest, as famously called by Albert Einstein as the 8th Wonder of the world.
However, when it comes to investing, it’s important to consider the context of one’s financial situation. Comparing someone who is debt-free to someone who is not will not provide an accurate comparison. While Jane invested $100 a month for 7 years, John was dealing with debt payments and didn’t invest anything for those first 8 years. But what if John managed to free up an extra $200 a year, or less than $17 a month, by paying off his debts? In that case, he would come out ahead of Jane by the time they’re both 70. And if he freed up more money than that, he would pass Jane even earlier.
So, what’s the takeaway? While compound interest is undoubtedly a powerful tool, it’s important to also consider the impact of debt on one’s ability to invest. Paying off debt and freeing up funds for investment can ultimately lead to greater financial success in the long run.
And given the state of the average American debt situation, $17 a month in payments is a remarkably conservative estimate. According to articles in business insider,
CNBC, and Forbes the average American debt situation looks like this: About $9,000 in credit card debt which is
often split between several cards. $30,000 in student loan debt. And assuming a used vehicle was bought a little
over $21,000 on a car loan. That’s around $60,000 in total debt. If we assume 18% interest on the credit cards
and 4.5% interest on the other loans and terms of 5 and 10 years on the car loan and student
loan respectively, the minimum payments could be roughly $900 a month. Freeing up that much cashflow could make a
tremendous difference in the previous example. Let’s look back at John’s situation from before
and assume that his household’s debt situation was that of the average American. John uses his $100 a month of excess cash
flow to pay off these debts.
Based on the numbers it would take him roughly
six years to become debt-free. This is assuming he did not work any extra
hours or sell anything to get out of debt faster. Once he was debt-free he would have almost
$1,000 a month left over to invest. If he starts the process of becoming debt-free
at the age of 18 when Jane was starting to invest he would have become debt-free by his
24th birthday. If he then turned around and started investing
the full $1,000 a month he would actually be further along in his investments by his
25th birthday then Jane was. Granted this is largely because he has invested
more money than Jane has at this point. Jane by her 25th birthday had only invested
$8,400. That’s quite a bit less than John’s $12,000
but think of the potential payoff of this down the road if John keepS investing that
money.
He’ll also likely be able to lead a much
better lifestyle than Jane in the present due to his lower monthly expenses. Jane may eventually equal him in that regard
if she gets her debts paid off, but for those first several years after John is debt-free,
it is worth noting. Remember, compound interest is an incredibly
powerful mathematical force. But it can work just as hard against you as
it can for you. So it’s important to make sure that compound
interest is your ally in your finances, not your enemy. So with that being said how do we avoid this
killer of wealth? First, if you’re lucky enough to not have
any debt right now research some ways to ensure that you keep it that way.
If you’re planning to go to college look into
ESA or 529 plans. They are ways to start saving for college
while lowering your tax burden (which is always a nice perk). Also, look into scholarship opportunities
or PSEO. Don’t be afraid to have a summer job and work
during the school year part-time. For the record, this can also be a good option
in high school to give yourself a head start financially so long as it doesn’t take away
from your studies too much. Make sure that you always have an emergency
fund. It should contain three to six months worth
of expenses so that you don’t have to take on debt for those moments when life happens. Make sure you have insurance for those catastrophes
that you wouldn’t be able to cover with your savings. Catastrophic health emergencies are a good
candidate for this.
If you’re already in debt, learn about how
people have paid off their debts. Then choose the strategy that is most likely
to get you (and keep you) completely out of debt. Three of the most popular strategies are the
debt snowball, debt avalanche, and debt tsunami. I have done videos on all three of those and
they will be linked in the description. The debt snowball is the one made famous by
financial personalities such as Dave Ramsey. It has you order your debts from smallest
to largest balance and pay them off in that order regardless of the interest rates on
those debts. The plus side is the momentum you can build
up for yourself by quickly wiping out those bills. The downside is it isn’t the most mathematically
efficient way to get out of debt, all else being equal.
The debt avalanche is the more mathematically
efficient option if you can stick to it. It has you order your debts from highest to
lowest interest rate and pay them off in that order. This is regardless of the size of the loan
itself. The upside is the fact that you’ll be paying
less in interest. The downside is in some situations it may
take quite a while to get rid of that first bill. For those who are more motivated by seeing
the balances of the debts themselves going down this may not be much of an issue.
For those that are more motivated by the lowering
of bills, this could be an issue in some situations. The debt tsunami has you order your debts
from the most emotionally stressful to the least emotionally stressful and pay them off
in that order. In some cases, this could mean paying off
the largest balance that also has the lowest interest rate first. However in my experience that is not commonly
how it goes. Most of the people that I’ve seen use this
strategy tend to use it because there are personal loans between family or friends that
are causing a lot of stress in the relationship. The person with the debt uses the tsunami
to get rid of that loan first and then often switches to a different strategy such as the
snowball or avalanche. Which is another viable option for many people. There’s nothing stopping you from starting
with one strategy that will help get you going and then switching to another that will work
for you longer-term.
I know a lot of people who have started with
the snowball to get themselves some momentum and then switched to the avalanche once they
were on a roll so that they could save on interest. Another thing I would recommend looking into
is the power of the debt snowflake. If you haven’t heard, the debt snowflake is
a strategy where you find ways to free up money (or just happened to find the money)
that you can put towards your debt payoff strategy. The nice thing about it is it works well with
any of the other three strategies I mentioned. While by itself it isn’t game-changing it
does help your primary strategy do its job a little better. And as we know every little bit helps. If you need more motivation make sure to check
out Dave Ramsey’s YouTube channel and their debt-free screams playlist.
It’s filled with a lot of amazing stories
of people paying off loads of debt on various levels of income and getting to see their
relief when they are finally debt-free is very inspiring. You might also find their Turning Points playlist
interesting. It is essentially interviews of people who
have become debt-free talking about what made them decide to go through that process and
achieve that lifestyle. I’ll leave a link to both playlists in the
description as well..
Step 1 of Retirement Success Plan: Investment and Portfolio Analysis
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
I'm giving you a choice of two Investments investment a and investment B both of them return 10 over the previous year which one would you rather have been invested [Music] oftentimes when I ask this question to a prospective client I'll get the response Troy it doesn't matter they both return 10 Give Me A or B but when it comes to retirement planning and this is why step one of the rrsp is so important the allocation meeting it's not about the return necessarily it's about how much risk did we have to take to get that return investment A and B both had a 10 percent return but this is just one outcome in an infinite set of possible outcomes remember these are two distinct Investments with different characteristics possibly different purposes so even though they return the same the question is how much risk did we take to earn this return are we being compensated enough from a reward standpoint based on the risk that we're taking so with a high degree of statistical confidence we could analyze and say investment a had a likely downside scenario of somewhere between five to fifteen percent if a different set of outcomes or circumstances occurred that's the risk profile but invest B had a possible downside of negative 20 to negative 40 percent now with that new bit of information which investment would you choose investment a or investment B all individual Investments or combination of Investments could be plotted somewhere along this chart this is what we call the efficient Frontier over here we have the return the expected return and over here we have the risk that we're taking so ideally we have Investments that are more to the left which represents lower risk and higher up the y-axis which represents higher return so if you own five different stocks that portfolio in and of itself could be plotted somewhere on this graph if you have one security let's say you're fully invested in your company stock you could plot it right here on this graph now if you have 20 or 30 or 50 different mutual funds or ETFs or individual stocks once again that set of Investments can be plotted somewhere on this graph so when we plot investment a and investment B on the graph here we can clearly see that they have a similar return profile but investment a has less risk so this makes it easier to identify as an investment that we would rather place our dollars now down here I have investment C could be a portfolio of stocks this could be maybe if you have a lot of money invested in your company stock but we clearly see that we're taking more risk without being rewarded for that risk that we're taking another way to think about this is think of your skills and the capability that you have in your current job or in your former job if you're if you're retired would you take a salary that was much much lower than Market in order to do that same job with those same responsibilities no you probably would not I know you would not that's what we're doing here with investment C essentially we are taking risk or taking on responsibilities in that example while not being compensated for it okay so think of these letters investment a investment being investment C this was the one we wanted to be in this is the one that we took a little bit more risk for the same return and over here we just don't want to be in I want to liken this to GPA grade point average because we're all pretty familiar with that either you from your schooling experience you have kids or grandkids an a investment or set of Investments kind of I put a in air quotes here that's the GPA so what we want to do with your portfolio in retirement is increase its GPA we want to reduce risk and increase expected return now that you have a good understanding of risk and return and how every set of Investments can be placed somewhere on that graph it's now important to tie that into retirement planning so the allocation determines how much income you can take how much money will be left later in life it determines how much tax you'll pay in retirement it can also impact your health care strategy or long-term care strategy and it definitely impacts your overall estate plan so those are the five steps of the RSP and this is why the allocation is so critical it's step one because it impacts everything else when you reach out to us for the first time all we do on that first visit is get to understand who you are and what's important to you we're going to gather some of the objective data under of course understand what your vision is for retirement your goals but the objective data is the current portfolio the financial statements the tax information how much we want to spend in retirement in between that first and the second visit we're going to go through an analysis to see where your portfolio falls on that Spectrum in order to understand if there's congruence between your willingness to take risk for the expected return that your portfolio can provide and where you currently are we first have to identify what is that willingness that you have to take on risk so we have to first understand your willingness to take risk so this is a pretty simple questionnaire here simply saying over the next six months you're comfortable risking this in order to make this potential return now this is what we call a symmetrical risk return profile we're essentially risking one dollar to earn one dollar but really what we're trying to identify here is what is your comfort zone on the downside because what we're going to try to do is create a portfolio that has an asymmetrical risk return profile so less risk to achieve more potential return so are you comfortable losing seven percent over the next six months in a recession or are you fine to let it stay invested and you believe long-term capital markets are going to do just fine so you're more comfortable in the short term possibly a 13 loss there's no right or wrong answer here but everyone's personal willingness to take risk is different so we have to identify that because if you have a portfolio that has too much risk that is the one thing that will absolutely be certain to blow up a long-term retirement plan if the market goes down you call us up panicking and say Troy I need to get out of the market I can't take it anymore well you most likely won't be in there for the rebound and all the planning that we've done up to that point can be significantly impacted because we were expecting the risk profile based on the conversations that we had to be structured properly and if it's not and the markets go down then we get out well all of a sudden everything is completely messed up so this is why your risk willingness is such an important concept because if we're putting a plan together we need to know that you're going to stick with it because markets will go down one other thing to point out here I like to focus on the dollar amount because percentages can be deceiving I had a client a long time ago or a prospective client come in and say Troy I'm comfortable losing about 10 percent he had two million dollars so I said okay if the market goes down and you lose 200 000 you're okay with that he said no I fire you instantly so there was a disconnect between the 10 percent and the two hundred thousand dollars so I like to talk about risk in terms of dollars because percentages seem just they don't really drill down into our willingness to take risk whereas if we focus on the dollar amount that hits home okay so this would be coming back on a second visit and we're looking at your actual portfolio and this is very similar to what we see someone maybe told us that they're they're comfortable let's say with about 50 stock but when we do the analysis what we often find is that there's more risk inside the portfolio but on top of there being more risk oftentimes it's not the most efficiently structured so we see down here we actually have bringing the GPA back a 3.1 so this means that it's not the most efficient from a risk-adjusted return standpoint means we're we're not where we want to be on that graph an annual range 3.42 so for taking this much risk we don't want to be rewarded with an annual range midpoint here of only 3.42 percent over the next six months now we also see with the potential risk and reward over the next six months there's a 95 percent probability that this portfolio to the downside could lose 16 percent over a six-month period and the upside is plus 19 so these are very very wide guard rails okay if we extrapolate that out over the course of one year we have a negative 32 percent and a plus 38 so most of our clients aren't comfortable losing potentially 38 percent in a single year so for this level of risk based on the questionnaire that we asked earlier and they come in around a 50 risk score this is not only too much risk inside the portfolio but it's really poorly constructed from an analytical standpoint and the guardrails are far too wide we're not being compensated for the risk that we're taking and that's what this GPA right here is telling us that's the analysis that we go through between the first and the second visit and that's often what we see it's not efficiently structured the portfolio possibly too much risk and oftentimes that GPA is a lower number meaning we're not being compensated with enough expected return for the risk that we're taking so in between that first and the second visit that's what our team is doing looking at your particular situation now once you become a client and we go through that allocation visit this is step one of the RSP what we're trying to do is to create a proposed portfolio that brings first and foremost the risk number in line with that questionnaire that we asked you before we're also trying to create some asymmetry in regards to the risk that we're taking in the expected Return of the set of Investments that we've put together so now what we've done is we've lowered the overall risk score of the portfolio to be more in line with the questions that we were asking in regards to that that slider that we had on the screen if you're not comfortable with potentially losing 19 percent in a six-month period we need to bring the risk score down in the portfolio so that's the first thing that we're trying to do the second thing is we're trying to create asymmetry here so you see this we're risking nine for the potential of 15.
This is over a six month period so we extrapolate that out over 12 months it's minus 18 for plus 30. that's asymmetry when it comes to the risk return profile additionally we've increased the GPA of the portfolio so the maximum according to the software is a 4.3 so this means we're being properly compensated for the risk that we're taking the expected return is the proper compensation for that risk now anything can happen Marcus can go up or down but what we've done is we've created an efficient portfolio that when markets are up or when markets are down our potential returns are in line with our willingness to take risks but also when we've tied this into your income plan tax plan and the rest of the RSP it's all creating a much more congruent financial planning experience also the expense ratio over here I don't know if you noticed before but we had an expense ratio in the mutual funds and that current portfolio in the proposed portfolio we've eliminated those fees so in summary here during the first visit we get to know where your willingness to take risk is in between the first and the second visit we're going through and doing an analysis of your current portfolio identifying the risk score see if there's any disconnect between your willingness to take risk in the actual risk inside your portfolio but then also looking at the potential return what is the GPA what is the expected return what is the Symmetry between these two once you become a client and we go through the allocation meeting here's where we look at the proposed portfolio where we get the risk number of the portfolio in a line with an alignment with your willingness to take risks try to increase the asymmetry between the risk and the potential return increase the GPA of the portfolio and increase the expected return now all of this is a shortened version of what the actual allocation visit looks like but it hopefully conveys how important this step is because it not only determines the amount of risk or the potential downside you could see to your values in retirement it also of course contributes to the potential return which then dominoes into your income for retirement the taxes the health care plan and also the estate strategy so step one allocation extremely critical when it comes to the retirement success plan this is why we do it first [Music] thank you
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Is Retirement Even POSSIBLE?
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
We want to thank Google's Science Journal App for supporting PBS Digital Studios. Imagine you had a time machine and with the
press of a button you could transport yourself to your own 75th birthday. Assuming you’re still around, what do you
hope to find yourself doing? Writing your memoirs? Sailing around the world? Partying in San Junipero? Very few of us would answer “cleaning toilets
at a fast-food joint,” or “begging for change on the street.” No one wants their story to end that way,
yet shockingly few of us are taking the basic steps to avoid it. The
simple fact is that if we’re lucky to live long enough, one day we will lose our desire
(or physical ability) to keep earning a paycheck. The older we get, the harder it becomes to
maintain a rigid work schedule. And as modern medicine allows us to live longer
and longer, the time we expect to spend in retirement might easily pass 30 years. Think of that for a second. 30 years without income. Nervous yet? Good. So how much would you need to not spend those
years in abject poverty.
Well, that depends on your personal needs,
standard of living, health issues, etc., but as a starting point, the AARP recommends that
to replace a $40,000 per year income for 30 years, you’ll need to start your retirement
with–take a deep breath–$1.18 million. If that number makes you feel a little dizzy…
well, you’re not alone. In one survey, Americans between 55 and 64
reported a median retirement savings of $120,000–only 10% of the amount advised by the AARP! Another survey found that 75% of Americans
over 40 are behind saving for retirement and 28% over 55 have no retirement savings at
all! There are many factors that contributed to
this problem. For one thing, wage growth declined in the
70s and 80s. It picked back up in the 90s, but then the
housing boom convinced a lot of Americans to go into debt to buy overpriced homes, and,
well, we know how that turned out. We’ve also seen an increase in cultural
pressure to show “visual displays of wealth.” A study published in the Quarterly Journal
of Economics suggests that Americans are uniquely concerned about seeming poor to others, so
they spend a disproportionate amount on things like shoes, clothes and cars.
It’s been great business for designer labels
and advertisers–not so much for our savings accounts. Lastly, changes in government policies have
made it easier to not save money. In the past, employees were automatically
enrolled in “defined benefit plans” with pre-set funding amounts to match their retirement
needs. Today’s workers have to “opt in” to
retirement plans like 401(k)s, and figure out for themselves how much to set aside. Furthermore, these plans are often “leaky,”
meaning you’re allowed to remove funds prematurely, which makes it easy to steal from your own
retirement. Does all this mean that saving for retirement
is hopeless and you should just blow your extra dough leasing a sports car? No! It’s still very possible to save up large
amounts of money on a modest income. The three special ingredients are Good Markets,
Compound Interest, and Time. To show you how these elements work together,
it’s time to… RUN THE NUMBERS! Betty is 30 years old and makes $50,000/yr.
She hasn’t saved a dime for retirement yet,
but this year she’s decided to start. Between the amount she is going to save into
her Roth IRA, her 401(k) at work, and her 401(k) match, she’s putting away $625 a
month, or $7,500 a year, That’s 15% of her income–which many experts recommend as a
good savings target. At this rate, by the time she’s 65, Betty
will have personally deposited $262,500 into her retirement account. Impressive, but still a long way from the
million dollars plus she’ll need to retire. But now we add our special ingredients! Over the last 90 years, the stock market has
grown an average of 9.8% per year. But let’s assume a little less than that…
say, 7.5% If Betty can put together a decent portfolio, she can expect her savings to grow
by an average of 7.5% per year. And as long as Betty doesn’t touch that
account, the dividends and interest she earns will generate even more dividends and interest! And over time, her savings doesn’t just
increase in a straight line… it increases exponentially! Now, by the time she’s 65, that $262,500
of her original money has ballooned to $1,277,158.92.
Nice job Betty! A couple things to keep in mind with this
scenario. It’s very likely that goods and services
will cost more in the future due to inflation. However, it’s also very likely that a 30
year old like Betty will see her salary increase as she gains more experience and skill. If she sticks to that same 15% of her salary,
she can expect to have even more set aside for retirement. What if you’re older than Betty and getting
a late start? Well, that may mean that you need to set aside
more of your paycheck, say 20 or 25 percent.
Or you may have to wait until your 70s to
retire. Either of these options is better than doing
nothing or counting on winning the lottery. There are many other factors that can change
your specific situation. Inheritances, social security, pensions, medical
conditions. If you’re not sure where to begin, you can
seek out the help of a financial planner who is a sworn fiduciary. They can outline a plan that fits your needs
and show you that preparing for retirement is not as intimidating as you may think. You don’t have to be into shuffleboard or
bird-watching to expect a little time off in your golden years. And some people want to work as long as they
can. But everyone wants the power to decide that
for themselves, especially after a lifetime of hard work. Of course, if you do manage to get access
to a time machine, you can always fall back on the old “Sports Almanac Retirement Plan.” And that’s our two cents! Thanks to Google for supporting PBS Digital Studios.
Their mobile app, Science Journal lets you take notes and measure scientific phenomena such as light, sound, and motion, using your phone, tablet or Chromebook. You can find activity ideas and additional information on their website at g.co/sciencejournal.
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Is gold a good investment in 2023? – Robert Kiyosaki, Jim Clark, Charles Goyette
Jason 0 Comments Retire Wealthy Retirement Planning
(upbeat music) – [Narrator] This is "The
Rich Dad Radio Show." The good news and bad news about money. Here's Robert Kiyosaki. – Hello, hello, hello, Robert Kiyosaki, "The Rich Dad Radio Show." The good news and bad
news about this here. This is cash, and this trash. So today we're going to be
talking about the hottest subject on the market today, and it's not real estate, what it is here is this is gold, and this is silver, and of course there's Bitcoin. So those are the three things.
And the reason they're the
hottest subjects on the earth right now is because our money is fake. So this is one of my
favorite books here, "Fake." I'll tell you a quick story
before we get into why gold, silver, and Bitcoin is,
that I was at Safeway, and I'm kind of a guru at
the salad counter at Safeway. (Robert laughing)
All the women were coming up to me going, "Hey,
what should we invest in? What should we invest in?" And I just happened to be
having in my pocket here, this is a pre '64 US quarter, and it's given to you by
my friend, Dana Samuelson, he's in Austin, Texas.
He is American Gold
Exchange in Austin, Texas. Dana Samuelson. So he knows I'm a silver nut. So this is a pre '64, and
pre '64 means it's silver. After '64, it became fake money. It became this here. So I held this up here to the ladies, they want the hottest tip,
and I said, "Buy this here." They went, "Oh!" A quarter? I can afford a quarter." I said, "Yeah, but I'll
charge you $3 for it." And you should have seen their brains, the salad was flying all over the place.
(all laughing) (Robert speaking gibberish) I said, "Okay, I'll tell you what, $2." (Robert yelling) They were screaming,
not screaming, but just, "Why would I pay you $2 for a quarter?" And I said, "But this is pre '64." They just could not figure it out. Now, that's the lesson of today, is that people don't know
that our money is fake. And that's why Rich Dad
exists and all this. But the sad thing about it is, is that AARP turned on my article because I wrote a story of
my mother, I used to save real quarters, cause when
I was 17 years old, in '64, I saw the quarter go to copper. It was fake. It was an alloy. So I started collecting
dimes and then quarters and half dollars. I had this big bag of real silver. And my mother says, "What are you doing?" I said, "This is real money." So this is, '64, '65, I
go to school in New York.
'66, I come home, my mother spent it all. (all laughing) And so I wrote the story for
AARP, they turned it down. I said, "The lesson is
poor people are poor cause they don't know fake money." They don't know the
difference between real money and fake money. So this is a very important lesson here. I have some two friends here from years, and like I said, Dana Samuelson
of American Gold Exchange in Austin, Texas. This is a special category of silver. It's called numismatic. And numismatic means
collectible and antique. And the reason I respect
Dana is because he was head of the American Numismatics.
So I don't buy numismatic, I
don't buy collectible coins, I buy real gold, silver. But if I want numismatic,
like an antique Dodge or something, whatever it is,
if I want an antique coin, I see Dana because there's
a lot of fakes out there. A lot of fake coins. So you got to be very careful today. But like I said, this
is the hottest subject. I have two great friends here. So Jim, and this is Charles Goyette here. This is his book here, "Red
and Blue and Broke All Over." (men chuckling) So Jim, how long have you
been in this business of gold? – 50 Years. – 50 Years.
– Yeah. – Our time is coming
on this one, isn't it? – Well, I thought it was
coming in 1973 when I got in the business. And it was just a year
and a half or so after Nixon had removed the gold and we got everyone off the gold standard. – The dollar was backed by this here.
This is real gold. So in '71, this was pulled out too, right? – [Jim] Right. – Because you just print
as much as you like. – Well it was no longer
backed by anything. It was a Federal Reserve
note, which is no more federal than Federal Express. And we were required
to take that as money, whether we liked it or not. – Right. Right. Another thing too, I
was in Vietnam in '70. '71, I was on my way
over, '72 I was there, and '73 I returned and I
bought my first gold coin. It was a South African Krugerrand. And the Vietnamese woman, gold was $35 for years, and then in '71 it floated
to about 50, let's say. And so I thought, "Well,
I'll go talk to her." She was behind enemy lines, I
flew my helicopter in there, tried to negotiate with her. I said, "Look, I'll give you 40 of
these for one of these. And she's going, "Spot." I go, "Let me say it again. 40 of these. for one of these," she goes, "Spot." I said, "What the hell
is she talking about?" Well, she was saying spot that day was 50.
And all of a sudden here, I'm
a college graduate, hopefully, with my other college graduate,
two pilots standing there going, "We don't know
shit about money, do we?" So spot meant that on
that day, it was 50 bucks. And I thought because she
was behind enemy lines, I could get it for 40. No such deal. Gold is gold. Spot is spot. Silver is silver. This is real money. So Mr. Goyette, Charles,
why did you write this? Tell us something about your background, why did you write this book here? – Well, one thing is Jim and I
were in the business together a very long time ago that
he was talking about.
But you just reminded me about spot. I remember seeing the
"National Geographic" special, this is back in the 70s,
and they went to these guys, these kind of third worlders
in the Amazon rainforest, way deep in the jungle, and these people didn't have any clothes, didn't have any electricity, but they were panning for gold there. And the camera crew came up
and tried to buy their gold and they knew what the
London goldfish was that day. (all laughing) They totally knew what the
world price of gold was, spot price of gold,
cause it's international, it's all over the world, and it's a real price
for real money, isn't it? – Yeah, the sad thing about
it is I think Americans are the least to know about money. Because we have the Federal Reserve note. I'll tell you one last
story; I was in Peru, I bought a gold mine in Peru.
There's no rain, there's just baron hills, mountains up in the Andes. And I see these little
holes up there, I go, "What the hell's that?" And my little Inca guide says, "We've been drilling gold
here for thousands of years, asshole." (all laughing) I said, "I'm not the first guy up here?" "No, you're not the first guy up here." "My great, great, great,
great, great, great grandfathers were yanking
the stuff out for years." And Bizarro came to Peru
and killed them all, took their gold. – [Charles] Stole their gold. – And so that's why the
Spanish became the empire at the time. Someone from Spain, England, America, America's gone now.
So that's what we're
here to talk about today. And we're old enough, the
three of us, to understand that this here is real and this here is fake. But most people would rather have this. This is the problem. – Robert, I saw one of those
YouTube videos where the guys on the boardwalk in Santa
Monica, it's kind of like jaywalking, like what's
the name of the moon? But he's walking around
with a chocolate bar and a silver coin, and he says to the people, he said, "Would you rather have
this chocolate bar," or I think it was a silver bar.
– [Jim] A silver bar. It was Mark Dice. – Yeah. And the people go, "Mm, I'll
take that chocolate bar." (all laughing) So they get a $2 chocolate bar, or a- – It was a 10 ounce silver
bar, it was about $300. And they'd rather have the chocolate bar than the silver bar.
– [Charles] They know no better, it's Jaywalking America. – And I'll say this again, it's the most important lesson: poor people don't know the
difference between real money and fake money. And that is what it comes down to. So it was in '71, this used
to be a silver certificate, now it's a Federal Reserve IOU.
It used to be backed by gold up to, no, this was '67, '64, excuse me, it was silver. And then in '71, Nixon
took the gold out of it. Johnson took this out of
the silver certificate. – Yeah, I remember I was
telling you that story the other night. I remember in 1964 where
we're sitting around the TV, Johnson came on and said,
"Silver has become too valuable to be used as money." And just as I'm sitting here, my dad said, "That son of a bitch. They're going to take the silver out and they're going to leave
us this garbage coins." And he didn't really
understand it, but he got it. And from that point on,
he saved silver coins. He had about $8,000 worth by
the time he cashed them in in 1980. – Yeah. And I was in South Carolina
where I have a home, and this guy said that his
father ran the theater, and his father said, "There's
just yanking out all the silver coins." The lesson again, is poor
people don't know the difference between real money and fake money. And that's why in "Rich
Dad, Poor Dad" I said, "The rich don't work for
money because it's fake." So the reason I like to have
Jim here and Charles is because this stuff is getting
harder to find right now.
And I was panicking cause I
deal with a lot of guys who have gold and silver. So I called my friends up,
"We cannot get silver." I went, "What?" This is about what,
seven, eight months ago, we couldn't get silver. So you guys are Republic
Monetary Exchange. – [Jim] Yeah.
– Yeah. On Camelback. And I called these guys,
they said, "We got plenty." – Jim has been very,
very good over the years at making sure that the
inventories are high.
He could see when these
runs are starting and stuff and the premiums are
starting to go up and stuff. And he's always put his clients first. He makes sure, we're going
to commit a lot of capital to make sure that our
clients can come in the door and get their gold and silver. The worst thing in the world
is these companies that say, "Well, give us your money now and then we're going to deliver
your gold or we'll send you your silver in six months or something." Don't do that! Don't do that. So Jim's just really
created a name for himself in his ability to always
deliver to his clients. – Well I've always stayed ahead
of the curve, that you can anticipate needs after
50 years in the business. – Well, not everybody can,
because I was panicking, Okay, well step back.
You have the spot price.
So let's say today the spot's 20 bucks. There's a premium on top of this coin, or this coin, should I say. What does the spot and the premium mean? – On that particular coin,
it's typically between $4 and $5 an ounce over the spot price. – So spot is the price
all across the world? – Right. And then all of the
products and coins and bars and so forth, they will
be priced accordingly based on the availability, the demand, the cost of refining and
putting them in the coins and shipping and distributor
markup, dealer markup, our markup and all that.
So there's always a premium that you pay to get the finished product. – That's like the tip at
the end of the dinner. (all laughing) – No, it's worse than that. – Yeah! I was watching Fox News
this morning, Fox Business, and they were bitching
about how, she went, where did she go? Oh, she went to the dry cleaners and she charged her, she
put it on a credit card for her dry cleaning; it said, tip 20%. She goes, "Why do I have to
tip you for my dry cleaning?" (all laughing) People are so desperate to
money because this is fake.
It's terrible. – Well, and because they can print it so much that the value
is dropping every day. They print up billions every day. Look at the bills that they
signed of, 1.7 trillion. Where's that money coming from? Well, they've got to print it. Or they've got to create something through a keystroke entry. That means all the rest of
those Federal Reserve notes out there become worth just
that much less everyday. – Yeah, this is trash. So I'll say it again, the
difference between rich people and poor people; rich people
know the difference between this and this. And so the Republic Monetary Exchange, there's a lot of people out there. Dana Samuelson, my friend,
he's my expert in numismatic. And I was impressed because
you guys had inventory. My other friend, Jerry Williams was out. And I said, "What the
hell?" This is a while ago, "What the hell's going
on?" It was running.
So it must mean there's
something going on because people would rather have this than this now, except for
the ladies at Safeway. (Robert laughing) – But they know now.
(all laughing) – It fried their brains. "Why would I give you $2 for that?" And I said, "That's the
riddle of the day, ladies." We're laughing, we had a great time.
But it fried their brains. Said, "What, what, what, what?" And I said, "I have a book here for you, It's called 'Fake.'"
(Robert laughing) And this whole system is fake right now. So we come back, we're going more into how people lie, cheat and steal because anytime there's money,
there's a liar and cheater and stealer around there. I've been saying this for
years, this is God's money. This is fake money. I like Bitcoin. I call it people's money. Now I don't know much about Bitcoin, but I'm just glad I bought it at six. That's all I know right now. So when we come back with
going more how you can know real money from fake money.
Some of the other advantages of right now. I've been saying this for
years, I used to work for Lear, I still have Lear Capital Ads, I said, "Buy silver." And the reason is
everybody can afford this. I think this is about 30 bucks. How much is this today? – Just under $30 for one of those, yeah. – Everybody in the world
can afford 30 bucks. But they'd rather have this. And that's today's Rich Dad
lesson. We'll be right back. (upbeat music) – [Announcer] Robert knows
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The Rich Dad Radio Show." The bad news about fake money. And again, we're talking
about this stuff is fake and this is real money.
We have friends, dear
friends, this is Jim Clark from Republic Monetary
here in Phoenix, Arizona. And Charles Goyette, here's
his book, "Red, White and Blue and Purple All Over." And we we're going broke. And so you guys have been
in the business for a while. I've been in the business
since '72 when I first bought my first gold coin. I still have that gold coin. – [Jim] Wow.
– It's not stored in America though, it's
stored someplace else.
– [Charles] Where is that? Oh, you don't have to tell. – I'm going to open my
blabber mouth on TV. (all laughing) That's like my attorney
stands in front of this crowd, he says, "Yeah, I have a lot
of gold, I keep it at home." I said, "Why don't you just
tell everybody where to go? Why not just give them your address too." (all laughing) Attorney's aren't the
brightest guys on earth. (all laughing) – Well I have strangers that will ask me, "Now, where should I store this?" I said, "I don't know and I don't care." – [Charles] And don't tell me.
– Well don't tell me.
So the FBI come, "Did you know?" So Jim, tell us about
what you have right here. You have silver and you have gold. – So I have the kilogram of
silver, which is 32.15 ounces, and then I have a 10 ounce gold bar. And of course, when you
see something that big, how do I know that's real? So we have a device, it's a spectrometer, that we can put, that X-rays the bar. And I've got it all set up. So what I'm going to do
is I'm going to point the device at the silver and I'm going to get a reading. Put it on there maybe
four or five seconds. It will read right into the bar. It'll come back. And if you can pick that up, right on the screen it says
AG, which is the chemical sign for silver, 99.99% pure. You know that this bar is absolute. We can do the same thing with- – Is there such a thing as fake silver? (crosstalk) Not too long ago, they caught some. – There were some companies
years ago that were making the silver and gold and it
wasn't coming out exactly pure.
And what happens then is if
we find that, we just throw it in the melting pot and
then bring it up to pure. Cause you don't want to sell
a bar that's 94%, 95% pure. So it's out there, which
is why we spent $20,000 on this piece of equipment that we can find a counterfeit bar. If it's not pure gold, we know right then, and this is paid for
itself many times over. Because so many times
somebody will come in and say, "Well hey, I've got this big block of gold and I want to sell it." Okay, let's have a look at it. You go through it, it's pyrite, or it's copper, or it's zinc. – Jim Recer was telling
us, in the New York Bank, he says they found some fake silver. – The bigger the bar, the
better chance that there is. So I'm going to do the
same thing with this gold. Because that's really the valuable. With a $20,000 piece of
metal, you want to make sure that it's what it's supposed to be.
Same thing. We come up, AU, gold. 99.99% pure. Which is exactly what it's supposed to be. – So this is January, 2023. What would this cost me, if
I walked into your place, Republic Monetary
Exchange on Camelback Road in Phoenix, Arizona, What would that cost me? – Just over $900 for that. – For that?
– Yeah. – My God. And how much is this thing here? – That's going to be
around 2,000, over 2,000, 2,050 or more. – This is 2,000, this
is a gold, what is it? – Eagle.
American Gold Eagle.
– American Gold Eagle. And that's 900? – Right, that's a kilogram of over. This is going to be close to
$20,000 for this gold bar. – What is that now? – 10 ounces of gold. – [Charles] That feels like
real money doesn't in, Robert? – Can I trade you this for this? (all laughing) – Go get 20,000 more of
those and we'll do it. (all laughing) – You're a little light. (all laughing) – Actually, on that subject,
we were talking about this the other night, Robert,
about cash for gold.
I'm one of the few people
who absolutely despise cash for buying gold, and
you'd think just the opposite, that I couldn't wait to get cash. But banks don't want it. Try and deposit $20,000
or $50,000 in cash. They'll turn you away and
say, "Well, we got to do this, that and the other, and
we've got to file this form and we got to do that." Hey, I would rather have a
bank wire than cash anytime. – Jim's story really
illustrates something with- – Wait. He doesn't want cash. And I thought the reason is
because it might be dirty or it's hot money or whatever it is. It's just a pain in the butt. – Well, it's that, but you know what else? I'm thinking down the road, let's say I acquire $1
million or $2 million in cash that the banks don't want to take. When this currency is repudiated,
I'm going to be stuck. Just like the people in Germany were twice in the 20th century that they were hauling wheel borrows full of Deutschmarks for a basket of groceries.
– Fake money and brought Hitler to power. The the Weimar Republic and
the Reichsmark and all this. Every time there's fake
money, tyrants rise up. Because people know something is wrong. – Yep. So here we go in this country. – [Robert] Right. – But Jim's attitude now
about cash really illustrates that the government, the
deep state, has won this war without legislation,
without public debate, they have won the war against cash. They've been at war at cash
because it's anonymous, they don't track you,
they can't follow you when you use cash, and
they've won the war. And so, the only alternative
people have to be off the grid, not to be tracked, not to be surveilled, gold and silver. That's it. That's all. – So once again, this is 1964. 1964, I was 17 years old and I
started looking at that thing like this. It was copper. The Romans did the same thing way back in at the end of their empire. So what were they doing when
they put copper in this thing? It's a law called Gresham's Law.
What does Gresham's Law mean? – Bad money drives good
money out of circulation. – So this money went into hiding. So I had bags of it. They said, "Go caddy, take my dollars, go to the
bank and pull out all the real stuff and hide the real stuff." I didn't know what I was
doing. I was 17 years old. Wasn't the brightest kid on the block. But I just knew this was fake. This was fake now. And then I come back
from school a year later, my mother spent it. That was a powerful lesson. AARP turned it down, they said,
"You're cruel to your mom." And I said, "Okay." Anyway, poor people don't
know real money from fake money. So that's why we have Sara here. So what happened in '71, this became debt. So our company, at Rich Dad,
we encourage people to use debt. This is my other friend here. He's a financial planner who
doesn't recommend the 401k. John McGregor's, this is "The Top 10 Reasons
Why the Rich Go Broke." One of the reasons they go
broke is they have a plan for their money, but they
have no idea what money is.
– Well, and I've talked
to people all the time that are multimillionaires,
they sold their business, they did this, that and the other and came into all this cash
that's sitting in the bank and said, "Well, you think
I should buy some gold with some of this?" I said, "Well, you know what they're
doing with the dollar, you know that they keep printing them, they can't print gold. Now you tell me how much
you can afford to lose of all that money sitting
in the bank, and I would say leave that there and get
the rest of it in gold." It's a bigger risk having paper money.
It's depreciating.
– It's a guaranteed loss. – And eventually, these
are going to be worthless. And we're in the 51st year of
fiat money when Nixon closed the gold window. A currency has never lasted
more than 50 years until now. And we're in year 51. How are we any different than
anywhere else in the world? – That's '71- – To 2023. How are we any different? Look what they've done in Venezuela. They were one of the richest
countries in South America, in actually, the Western hemisphere. Look what they've done to Argentina. Look what they've done in Cuba. Look what they've done in Mexico. Same exact economic principles
that they broke there, we're doing the same things here.
– Somebody asked me once, "Charles, how many paper
currencies have gone broke, have gone worthless over time?" And the answer is all of them.
– [Robert] All of them. And the ones that people still
hold are only on their way. They just haven't arrived at
their final destination yet. – It's like I said, I'm 17
years old in 1964 going, "Something's wrong here." That's Gresham's Law. And I think that's one of the
reasons I'm a rich person, is I know real from fake. And then, so when Nixon
took the dollar off the gold standard in '71, I didn't
really know what that meant. But the first course, I
was in Vietnam in '73, I came back, '74, they made this legal. Remember that? It was illegal.
So I had to smuggle
that, I was in Hong Kong, I had to buy my South African
Krugerrand in Hong Kong. I had to smuggle it into the country. Why was that? – It was in '74?
– Yeah. – Yeah, because it was illegal
to own in bullion form. – Well, in '73 I brought it in. – It was a felony. It was a felony. They could put you in prison
for 10 years and charge you $10,000 fine. They made it a felony for
Americans, free people, to own monetary gold and silver. Or gold anyway. It was a felony. Was it dangerous? Was it going to blow up? Was
it nuclear contamination? Was it going to kill your
neighbors with poison? What was wrong? Well, it was of course,
you know the answer, it's always the same
answer, the government grabs all the gold cause it wants it for itself, so you can't be allowed to have any.
It's exactly what they did. – At that time there were
two very good senators, Steve Sims and Jesse Helms, who introduced the idea of
Americans owning gold because foreigners could own gold
and Americans couldn't. And if there's anything to be
said good about Gerald Ford, it was that he signed the
bill after it passed through both houses to make gold legal to own. Now unfortunately, at the
time, gold was around $200 an ounce, and over the
next year and a half or so, it dropped to 100. So a lot of the curiosity
of owning gold disappeared. But fast forward to the Jimmy Carter days, 1976, gold went to 100. And by the end of
Carter's term it was 850. And silver went from about
$3 an ounce to $50 an ounce in that four year period. – So during Carter's trend, this was 850? What is this today? – 2,050. – So why would you save this trash? (Charles laughing) That's what I'm saying here.
– It's fake. How about that to sum it up? That's fake. – [Jim] It's a trick. – Another thing I want to
say, cause I'm a history buff, it's about the only subject
I did well in school, the reason he doesn't like the 401k is in 1974 when Ford put us
back on, we could own gold, they put us on the 401k. (indistinct) And today, this is the biggest
reason you want to own gold. Because our pensions, as they
keep raising interest rates, our 401ks are going down. But not only this, my book
wrote with the Ed Siedel, is our pensions are broke. So as the firefighters, police
officers, school teachers, their pensions are gone. So the fed's going to have to print. That's my whole summation. – Well, and what's crazy
about it too is that you get your statement online
every month and it says, "Oh my god, look, I have
$500,000 in my pension plan. Boy, that's going to last
me till the year 2050." It's not going to.
The dollar's not going to
be there, first of all, and the pensions are gone too. But gold will be there forever. – This will be here. This is God's money. We used this as money
for about 5,000 years. But God put it here on the
earth, and that's when I was in the Andes with my old Inca friend, I said, "Geez, look at those holes." He says, "Yeah, we've been
digging longer than you have." And I was in Mongolia, same
thing, there's a place called the Checker Board.
They call it the Checker
Board because the Mongolians, this is thousands of years
ago, were digging for gold. Now they didn't have internet,
they didn't have iPhones and all this stuff. Humans intuitively knew to look for gold. That's what blew me away. – Well, and when you think about- – Except for the women at Safeway. They don't know gold from silver. – [Charles] They need a salad bar guru. (Robert laughing) – When you read the stories
about all the Spanish ships that have sunk over the years
coming across the Atlantic, and the explorers go down there, they're not going down there
looking for the currency of the realm of the day and
see if the paper survived; they're going down there
looking for the gold, they're going down there
looking for the silver.
And they find it. And what's amazing is
that if this bar had been in the bottom of the ocean for 500 years, it'll still be in this pristine condition. It doesn't rust. It doesn't erode. It will do the same thing
now 500 years later. And they've brought some
amazing coins that have been in the Spanish ships that
were in pristine condition, that have graded out
un-circulated, like it was the day that it came out of the mint. – What's that joke? Who's the guy in the fed? – [Charles] Ron Paul.
– Ron Paul, he said if a Spanish ship went down with gold, another ship went down with dollars, people would stop diving for dollars.
(all laughing) They still dive for gold. It's kind of a funny thing, but it's sad. But another thing too is I had a pile of extra
silver I bought from you, and I was handing them
on his Christmas gifts. It's $30 let's say. And one woman had four kids. I said, "Give each one of
your children one of them." One silver coin. I said, "It'll there when they
graduate from high school." "No, they'll probably have spend it." I said, "Yeah, they probably will." But that's the problem. I save this. I say in "Rich Dad, Poor
Dad," savers are losers because they save this. If you save this, and if you save this, what is this here? – $30.
– Yeah, well what? – Silver, it's a silver round. Just a generic silver one ounce piece. – It's a buffalo.
– Yeah. I'll call up Jim and
say, "I want buffalos." So he knows what I'm talking about. There's different goofy
kind of coins out there. But I'd rather save this
cause this will be here 10,000 years from now. This won't. You can pass it on from
generation to generation to generation. – I'll be surprised if that
paper dollar is here even 10 years from now. – I doubt it. Yeah. So anyway, we're in very
serious, serious trouble here. And this is the hottest subject going. For years, I've been saying buy silver because everybody can afford silver.
When I offer them this
for $3, they went nuts. They went, "Why would I buy that?" Because they'd rather have this. That's the lesson. Final words there, Mr. Jim. – Well, we sure appreciate
all you do for the freedom movement, Robert. And speaking about gold and
speaking about the fake money that we're passing around, it's a great lesson
for the next generation whether we realize it or not. At our age, and doing all
this for 50 years or more, we've got a great legacy to
pass on to the next generation because they just don't know. And you are a patriot in the
true sense of the word, sir. Thank you for having us. – Thank you. – Robert, let me ditto that
too, because we're in for some really rough sledding in this country. There's some rough patch of road ahead and it didn't have to happen and
now it's going to happen. And as bad as it's going to be
for the people who understand the lessons that you've been
doing in your educational efforts and teaching them about money, the ones that take action
based on those kinds of recommendations and that
learn about this stuff, they will be so much better off.
And the more of them there are
the better off we'll all be because maybe we can have
some kind of commerce still continue when the whole
thing goes topsy-turvy. So thank you, Robert. – How many of the layoffs
are just starting right now? This is January 2023. – 10,000 at a crack by these companies. 10,000 here, 10,000 there. – [Robert] Because
they're working for this. – Yeah, and this is horrible stuff. These are people that are
living paycheck to paycheck like we've never seen before,
and their personal debt has never been so high as it is right now. – It's a disaster. – And there's now called
the working homeless.
They have jobs but they
can't afford to live. – [Charles] Sleeping in their cars. – Yeah. That's because this is fake.
– [Charles] Yep. – Well we have a lot more
information on our website by the way, Robert. – The reason I invited you guys
cause you actually do teach. If you were just promoting your company, you wouldn't be here. So what is a book you have
and what is your website? – Okay, the website is RMEGold.com.
– Dot what? Com? – .com, and then my- – I thought you said .gov, I was going, I didn't know you were a fed. (all laughing) – And my book is "Real
Money for Free People, the American Gold Story." – In fact, people that are in
the Phoenix area can stop by, Jim will sign a copy of the
book and give it to him.
But his book is a really good book. And there's a ton of
information on the website too to bring people up to
speed, to learn the lessons that you teach, like
the lessons about fake. And we have a new post
going up, for example, about your book, about pensions. – [Robert] Oh, thank you.
– Cause it's so important right now, especially now the
Congressional Budget Office just announced that Social
Security's finished at 2033. – Yeah. And the reason I wrote this
book was because in '74, that's why McGregor wrote this book here. That was a 401k. But that's when the pension
started getting looted.
And now our generation,
the Boomer generation's in serious trouble for retirement. Cause I don't think
it's going to be there. – The American people lost
26% in their 401ks in the last year, through October, so it's very grim. – And that doesn't even
take into consideration the depreciating dollar to go with it too. – So, okay, watch's your website again? – RMEGold.com. – RME. And then your book here is, Charles Goyette, Red, Blue. – "Red and Blue and Broke All Over: Restoring America's Free Economy." – You're an optimist, aren't you? – My publisher said, "Write
that book about how to put it back together, I said,
"You know they're not going to do that." And they're not, but it's there anyway.
– They're going to keep
printing this because this gets more valuable. – We're beyond the point of no return. – [Charles] Yeah. – The sad thing about it is,
as the price of gold goes up, everybody else gets poorer. That's what breaks my heart. I love those girls at Safeway
serving me their salad and coleslaw and all this. It just blew their mind, they said, "$2 for this?" But that's what America
has sold the world there.
That this is valuable and this is fake. This is real. This is fake. – I'll give you $2 for
it, Robert, right now. – I know you would, that's
why I'm keeping it tight here. Here's my silver; the Lone
Ranger had the silver bullet, this is my silver bullet
from Dana Samuelson. Bite the bullet. (all laughing) So thank you, gentlemen.
Thanks for being teachers. And they have inventory. When things were really tough
I was scrambling because- – We were never without anything. – I'll tell you why I was panicking, if I waited a few more
days, the price would go up. And then when I ran in
there and then you guys, not you guys, but my other friend couldn't deliver me silver, I went. And I said, "What am I going to do?" So I bought it that day
anyway for future delivery.
So it was a gamble, so
basically a future delivery. – [Charles] Right. Yeah. – [Jim] it sounds like you did all right. – Yeah. Two last things: there's a thing called distribution and accumulation. Price of gold and silver is low, and silver and gold and
oil, I'm accumulating. I've been accumulating since '72. I own more gold than most people. Most of the gurus on TV. I own gold mines, silver mines because I believe in this stuff,
cause this is God's money. This is fake money. Thank you, gentlemen.
– [Jim] Thank you, sir. – [Charles] Thank you Robert.
– Pleasure to be here. – And when we come back, Sara
be back with a final word here.
So thank you, gentlemen. (upbeat music) Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show." Thanks to Jim Clark, the
Republic Monetary Exchange, RME, and Charles Goyette of
Republic Monetary Exchange. Because this is the hottest
subject of all today. It's silver and gold because this is fake. So Sara, if you have friends and
family who are still hoarding this stuff here, haven't
listened to this program and discuss it with them,
because I'm now called the Salad Bar Guru. (all laughing) I thought it was hysterical,
but it fried their brains.
What's the difference
between this and this? One's fake, one's real. So Sara, what questions do you have? – [Sara] Yeah, well,
just wanted to mention, my brother for my niece,
she's 11, he said, "No more presents. From now on we only want
you to get her silver." So every year, each sibling
gets her some silver coins. And I was like, "Man, he's so smart." Anyway, I just wanted to
point that straight out. But my questions to you
are, can you briefly discuss the different markings? What does that identify on the bars? – Okay, so this has the size of the bar, which is one kilogram. Valcambi is one of the
worldwide known refiners of silver. It has their logo on it. It's been stamped with the serial number and the finest of 3.999 fine silver. The gold, a little different.
It lists the number of ounces and this is four nines fine. Also with the serial number. And as you saw earlier, we
put the spectrometer to it to show that indeed, both of those are pure silver and pure gold. And if there's any doubt with anybody buying silver
and gold, is it real? We can put the spectrometer to it and show that it is exactly
what the purity should be. – [Sara] Awesome. The second question I have
is, Robert had held up his buffalo and you called it
a generic one ounce coin. What's the diff? – So the US Treasury
and various governments around the world, Canada, South Africa, make a coin of the realm,
meaning an American Eagle for the United States. So the treasury makes that coin. The premium is significantly
higher for that than it is for this, but it's
exactly the same properties, same weight, same size and everything. – Wait a sec, so if
this was a Silver Eagle, but this is, I call this a buff, what's the price difference? – It's going to be $6, $7 and ounce more to have the name brand,
but silver's silver.
So it depends if you, "Well,
I only buy a name brand, I won't buy Costco brand of
something, but I will buy the real ones that you hear
on television all the time," even though it's exactly the same thing. So you get more silver for
fewer dollars if you buy it in the buffalos or what we call generic. But recognized as being
a coin of the realm and something that you can be
sure that it's the purity that it's supposed to be. So reputable private,
refineries make the buffalo, the US Treasury makes the
American Silver Eagle. – Why would somebody pay the difference? – Why do they? – No, I mean-
– [Sara] Why do they buy- – Money's is no object
and they don't mind paying $6 an ounce more, and it's
a US Treasury stamped coin.
But you get more when you sell it too. – I bought considerable amounts from Dana in Austin, Texas, and he traded out my Gold
Eagles for regular gold. And I said, "Why?" He goes, "I don't know,"
but he says, "You just made a lot of money." So instead of having 10
ounces of gold, I now had 15 ounces of gold.
But just because one from
Eagles to something else. All I want is the ounce of gold. And as long as it's pure,
I don't really care. But some people do, right? – Yeah. And either one of those,
it's all recognized for them. So it's personal preference at that point. – [Sara] That was a big
question, cause Robert, if you remember back in
October, the team made a big silver buy, and
that was a big question, when we got the price sheet, we were like, "Why would we pay, if it's
the exact same thing," but that makes sense. Just a name brand difference. – This is when we couldn't take delivery, we're buying a lot, so we
bought it from Andy Schectman. It was a lot of silver and gold we bought. – [Sara] The last question is, in the beginning of the
conversation we had talked about why you didn't want to
take cash, and you said it's a hassle.
Is it also true because cash is devaluing so fast,
it's not really a fair trade. I mean, not fair, but
you know, even trade? Do you feel that way at all? – Well, it's cumbersome. And banks typically
don't want to take cash, and ironically, they don't
want to give cash out either. So we've had situations,
people wanted to go withdraw $100,000 in cash
at the bank, they'll say, "Come back in three or four
days and we'll accumulate it for you, but we don't have it here." I say don't even do that. Just
wire the money over to us. It's just boom, boom, boom. Simple, we don't have to worry
about any counterfeit cash, although our machines pick it up anyway. It's a cumbersome thing
to do, but I look at the big picture; some point down the road, this cash is going to be worthless.
And if the banks don't want
to take it in deposits, I don't want to be stuck
with $2 million or $3 million in cash and lose that. I would rather have money in the bank. Not money, but I mean fake
money in the bank that I can buy real silver and gold with
and have that on the shelf rather than cash sitting there
that is devaluing every day. – [Sara] Yep. Good. Great. That was it. – Final word, Mr. Goyette. – Hey, thanks for having
us on again, Robert. – And this is your book here. Got to plug the book. – One of one of several. And it's about "Red and
Blue and Broke All Over" and how the country is broke all over and the exact story you've been
trying to explain to people for a very long time, and now here we are.
– Another thing we do, Sara, is I send out a newsletter every week, my blog basically, that gives a synopsis of
what's going on the past week and maybe what we're seeing down the road. And just keeping clients and prospects informed of
how we see the market. And whether I'm smart or
not, it doesn't matter, I've been at this 50 years,
I've got a lot of experience and I can share a lot of information that I've acquired over the years. And I encourage people to go
to our website RMEGold.com, and you can sign up for the newsletter. There's no charge, we email
it out every Sunday afternoon or Monday morning, whenever we
put the finishing touches on. And I would encourage
people to sign up for that at RMEGold.com – And that's why we
invited Charles and Jim, because they are educators like Rich Dad. I buy, I don't sell this stuff. (Robert chuckling) I do trade occasionally. But anyway, so thank
you very much, gentlemen and thank you all for
listening to "The Rich Dad Radio Show," and remember, this is fake and this is real.
How much is this today? – That's about $5, so
you were really cheap when you were saying $2 or $3. – Oh my god! I was going to get taken. The salad bar ladies
were going to take me. (all laughing)
– [Sara] That's why he said, "I'll give you $3 for it." – They were trying to cheat
me at Safeway. My god. – You're behind the times, Robert. You forgot how quick
this dollar is devaluing. – And they're raising
the price of the coleslaw on top of that.
(all laughing) So thank you, gentlemen. – [Jim] Thank you.
– [Charles] Thank you. (upbeat music).
Former Wall Street Investor Explains How to Build Wealth like the 1%
Jason 0 Comments Retire Wealthy
most people don't know is that wealthy people focus on making money and preserving their wealth that's all that matters no matter how much money we do or do not have we are training our minds to know hey if I have $10 it's my job to think like a billionaire and billionaires are setting their money aside they're investing their money they're creating money and they're no longer just relying on one stream of income to put them in position to build [Music] wealth it has to work where it has to work welcome to another episode of Circle of greatness I'm your host Nehemiah Davis and today we got a special one for you so my goal this year is to help so many people become Financial literate help so many people just understand how money Works help so many people create cash flow and I've been watching this young lady for so many years from she had her program in schools literally educating kids on stocks right literally worked on Wall Street and I talk about literally does what she preaches all day long and is responsible for helping so many people create cash flow so I said you got to come over and educate me about this reach things about stocks and about creating cash flow for everyday people so without further Ado I want to introduce you to our special guest of the day Ashley Fox how you feeling I'm feeling good thank you for having me oh thank you for being here how you doing I'm doing well I'm good learning and growing so you've been for years like I I've watched you from creating programs to teach youth about Style in about financial literacy doing the same thing for adults what you probably serve tens of thousands of people as of now just I think I think it's Millions million EXC excuse millions of people on just educating them on financial literacy and stocks and reats and different things like that right so I was on Wall Street for a while yeah and I realized well first I was working with Millionaires and billionaires so in order to talk to my team you had to have at least $25 million wow so have a conversation yes un if not we sent you downstairs wow so I was in the bank accounts of millionaires and billionaires so I was seeing what they were doing yeah and while I was making less than 100,000 um I wanted to do and become what I saw every day but I also realized that growing up I went to Howard major in finance worked on Wall Street I got access to this information because of my career choice but if you don't come from money you don't work in finance major you know or or work on Wall Street how do you get access to this and so when I left Wall Street my goal was to take the knowledge that they gave the 1% and build a platform build a company that targets the 99% That Wall Street overlooks wow what some of the things they was doing 25 million in account 50 what's a couple of those things one of the things one of the things that most people don't know is that wealthy people focus on making money and preserving their wealth that's all that matters yeah and not losing it so when you think about inflation like wealthy people we were trained that if they just parked their money in a savings account it was our job to go work with investors to put together a plan where they can execute and invest that money and I think we're we're we're we're conditioned I think we always got to work for money but now it's time for our money to work for us because this country wins when we spend money and I'm watching these clients who are owning the companies that I spend my money with the owning the basketball teams that I'm watching on TV and it's like well not everybody can see those bank accounts see those strategies but they're protecting their wealth and Trust Estates Wills things of that nature to make sure if they're no longer here how do I make sure my kids kids kids are set and there's strategies in place where you can set money down set money aside for your kids kids kids and avoid taxes right so I think it's it's understanding one their priority is I have to invest it's not an option it's a standard I have to protect my wealth I have to it's not an option it's a standard because if you have like 100 million doll and inflation is 6 7% you're losing millions of dollars by doing nothing wow so it's getting to a space where no matter how much money we do or do not have that we are training our minds to know hey if I have $10 it's my job to think like a billionaire and billionaires are setting their money aside they're investing their money they're creating money and they're no longer just relying on one stream of income to put them in position to build wealth so I would say multiple streams investing is a standard not an option that's and putting things in place to protect so if something would ever happen it's not the government that gets to keep it it's their family to keep it I think you should trademark that if you didn't investing is a standard not an option can you imagine how far we would be as a culture and Society if investing was a standard and not option yeah do you know how many how how many I don't even think I think America will still work but there will be a lot more wealth yeah because we have perfected especially African-Americans we have perfected how to spend yeah we good at that trillions of dollars of buying power but not recognizing that every time you are giving somebody your time or your money someone else is monetizing off of it just by you sitting on a social media platform watching a television show it's going to someone else and what they created now I always tell people there's two ways to really build wealth in this country first way is you either can create your own idea right or you can invest in somebody else's idea right so I run my company emplify and I've been through Hellen back I've been kicked out of places lost you know all types of things that's not for everybody but you can invest in somebody else's idea you can do that through through the stock market and it's really Opening Our Eyes to say hey you don't have to have millions of dollars anymore the game is different I I left walet in 2013 it used to cost me every time I process a transaction inside my investment account there was a fee that that no longer exists right so the doors are now open for the everyday person to get exposed I think we have to start letting go of the fear the doubt the worry and the conditioning that has been embedded in our minds to recognize this game is a game I can play because there is no America if you don't spend money so why not start investing in the things you're using investing in the companies that are getting your time your money and your energy because we don't have to not we don't have to hate America we can just get money with America ohoo you talking you talking that talk so I'm a new investor right meaning I invest in real estate I do invest in stocks but I'm not really educated on stocks like I got a stock portfolio I got a I got a nice amount in there but I'm not really educated nor do I have a plan yet for my kids when it comes to stocks and I know open up a what's that called a custodial account but I want to go through some what are some things that I need to be doing and others need to be doing right now to begin to start preparing for the standard like if we're now about to if everybody looking at this like I'm about to make this a standard let's walk through some of these steps of what we need to be doing okay let's I got a merit trade account I don't know if that's what we supposed to have but let's let's let's talk about so let's take a step back right first thing you got to recognize is you can no longer spend or save your way to wealth we all know we know L you can't spend or save your way to right that's the first thing so we need to invest y regard I don't care if it's with $5 $20 if you have made a commitment to pay your bills every month if you've made a commitment to spend money every month you have to make the commitment to pay yourself every month that's the first thing Y in order to invest the easiest way to do it is to open a brokerage account brokerage account so the brokerage account is what your amerit trade is right it's the it's the middleman between the in the seller of an investment and the buyer right so you open a broker account to buy stocks to buy reats to buy ETF right takes less than five minutes stocks reach each you got to break that down for the people so so stocks in buying stock in individual companies got it re Real Estate Investment Trust where you can own stock in a real estate company that owns and operates real estate and you can collect passive income ETF is like a bundle of stock so it's kind of like I don't just want to invest in LeBron James I want to invest in the entire Lakers team that has variety of players that and they all do different things that contribute to the overall win of the company can you invest in teams right now like NBA teams yeah is that something that's like a secret society I didn't know if they had ETS for no so the way same way you can own a piece of a company there are different shareholders that own a piece of NBA teams but those are more private transactions got I hear a lot of like just say Jesse Isler owner of the Atlanta Hawks they just said jcole bordon Jordan sold his team that's more of a hey investment groups and stuff like that private but same concept you're just saying well I don't have to it doesn't have to be NBA team I want to become part owner of Amazon I want to become part owner of Netflix and really starting to think what company so now you open a brokerage account you connect anyone you recommend um so I wouldn't say I recommend but let's it's at the end of the day they all do the same thing just so just open up a brok but what I would say is I personally coming from Wall Street I like the vets in the game lot of new apps that exist which are phenomenal right they are great to start not to finish so if we're going to play this money game we're talking to Fidelis of the world the Charles SCH which is now yeah like the E TD Charles TD so all these accounts are great so from the new apps that exist they're fine so if you already have one of those perfectly okay but if we're talking about hey I want to get to a space where I'm operating having millions of dollars you know whether it takes me it takes a month or 10 years some of the new apps can't produce and do the things you need to really create the life that you want just with features right so you get the brokerage account you connect it to your checking account so you're going to transfer the cash you have into your brokerage account so your brokerage account is your shopping account I'mma shop for my stocks for my investments you can easily sell it and when you want the cash you can transfer back to your checking or savings account you I've had the privilege to help hundreds and hundreds of people all around the world open up their own profitable event spaces utilizing my signature formula number one how to find a space number two how to fund the space and how to automate the space I've been in Atlanta Georgia now living for two years my spaces are still in Philadelphia operating doing extremely well because we use the same exact formula that I break down right if you're interested in learning how we can help you I want you to go to events sps.com watch your training or book a call with our team to see if you are a good fit again this is for you specifically if you looking for other ways to leverage your money and turn that into other streams of income right I don't believe there's a better time than right now for you to get tapped into the information in the game that can help you so again go to eventspace secrets.com watch the trainer the book a call with our team to see if you're a good fit for this opportunity let's go now once the account is open first thing I always tell people and even for you what do you use every day right it's not about looking at my social media or looking at the the gurus on the internet that's fine but I'm 34 years old with no kids I'm an auntie so how I invest my money might not be the same as someone who's 50 50 years old who has children right the easiest way to start is to make a list of companies you use every day from the soap you use to the open brokage make a list of all the companies you use day from from the toothpaste to the soap to the foods to the car to the gas right because if you are a consumer you know what the company does for a living right so instead of trying to find that random pharmaceutical company that somebody talked about on the internet because you want to make money fast start to invest in reputable businesses where you are a consistent customer yeah then you start to figure out are they publicly traded because not all compan so I run a company called amplify it's private right so the everyday person can't just invest in my business but publicly traded companies stocks on the stock exchange can be purchased by the everyday person the easiest way that I say you can figure that out is just typ in a company name type in stock and if a chart pops up in Google then you can buy stock in that company that's just the easiest way to do it now when you make that list then ask yourself who do you want to invest in like who do if you could be part owner of a company that in the next one 1 2 3 4 5 10 years who do who do I want to make money with right like who and one one thing that I personally do like I'm not like a I read stock charts every day like I like the winners who's who's the number one Airline who's the number one e-commerce platform who dominates and runs this country because one thing you got to learn about America America would do everything in its power to protect their power meaning big companies produce jobs did you know that Amazon is the second largest employer in America meaning if they go under America loses because now there's no jobs you need these jobs to circulate cash in the economy which is what makes America win right so for me I like the big boys right they're not as sexy and they're not talking about the internet you're not going to like flip your money tomorrow but I know I like to wake up and know that I use this company that I make money because of this company and this compan is going to be there in the next 5 to 10 years because they're so big right now for your kids think about 10 years from now 20 years from now so for for me personally 5 years from now it depends on so also depends on what you want right so hold on let's take a step back making a list of the companies you use cool right and for your kids do the same thing except your kids are younger so when you think about your time Horizon do I want to make sure my kids are set up by the time they're 18 do I want to make sure they have money for prom when they're 15 16 so build out the stages of when you need money and what you want money for because once you dictate that time Horizon that'll tell you what types of companies you want so for example I invest in Amazon Amazon is a gross stock meaning they don't pay out dividends so one of the ways that you can collect passive income which is also important for your kids is some of the some of the companies that are big today aren't sexy anymore sexy meaning they're not always in the news AR aren't sexy right so imagine Jay-Z right Jay-Z's a vet would you invest in Jay-Z if he was a stock yes now Jay-Z might not flip your money tomorrow like one of the new rappers but Jay-Z's consistent he's reliable right now now knowing that Jay-Z is like that let's call Jay-Z a dividend stock so dividend stocks are companies that take a portion of their profits and give it to you the shareholder as cash flow so you can collect monthly or quarterly cash flow from companies that are giving the a portion of their money to you because companies know hey I'm not going to grow in my prices are going to grow a lot but I can give you reliable cash flow so people who want passive income I want to invest in companies that are paying me just because I own them I'm getting cash flow so the more shares I own the more cash flow I get and it's better to do with a company you actually know than a random company yeah that's going disappear tomorrow right and I've invested actually previously in companies where they're like hey just buy this now I heard it's going to grow real quick and then still I got some of them accounts on my phone and they're red right because they're well having red is not a bad thing but you got to know who who are you going into this account am I looking to flip my money really quick you got to play that money game then you're going to take some losses it's going to go up it's going to go down but if you want reliability you want consistency you got to think about the type of company you want to buy I want to know that my company is growing gradually consistency is large been doing this for a while a recession isn't going to shake them up you want a bigger company now if you buying small Penny socks things like that that's like buying a startup you never know what's going to go down with a startup but we all know that we're still going to get our packages delivered by Amazon because the whole world is using Amazon and they're making a100 billion do a quarter right so it's more 100 billion now but but imagine if you invested in Amazon 18 years ago took them some time to become an Amazon AR today took some risk they might have took a lot of hits but it took them all these years to get to that because when you buy a stock you're not buying the price you're buying a company so you got is this a small company is this a big company have they been doing this for a while are they paying a dividend because if you think about a passive a stock that pays passive income if that company is able to share profits with you that says something about that company there have been times running my company where I didn't have cash at the end of the month I didn't paid all my bills it was nothing left companies that pay dividends have cash left got cash to pay their bills cash to grow their business and cash to take care of you and your kids that like clockwork that money is going to consistently come that says something about a company if they're stable enough to give you cash flow now their price might not jump a lot but they're giving you consistent cash flow so now when you're thinking about what am I buying what kind of investor am I do I like to wake up and know my companies are still there I'm gradually growing getting some cash flow you're looking at more of a of a more stable company but if you're if you say look I want flip my money I want to trade all like and some people are like that I'm not like that because I I run a business so I can't monitor the stock market every day but when you open this account you got to ask yourself what kind of investor am I and you might say Ashley I want growth I want I want a little growth I want my stocks to double perfectly fine but actually I like cash flow so open two broker accounts one strictly for the goal you set hey I just want to day trade all day open another account like really separate your money based upon the goals that you set for your money yeah hey y'all listen to me I got to stop the episode for a second I mean I don't know about y I'm trying to take notes I'm trying to internalize what she's saying I'm trying to literally digest it but I also understand it's going to be hard for me to grasp her 15 20 years of education in a a 30 minute episode so if you are looking at this what I want you guys to do right now go to myash flowc creation.com right now Ashley is hosting a 5day virtual conference where every single day she's going to be breaking down everything that we need to know to create wealth for our family listen I'm going to be on there my wife is going to be on there my 17-year-old is going to be on there why because I want to make sure I create wealth now not later so I need to know everything so what I want y'all to do immediately go to my cash flow cre a.com go ahead and join it y'all and uh in the comments just say I got my seat and we going to get back to this episode yes man you are going crazy like literally you're giving just in 15 minutes like you open up the broker's account identify what you need to buy open up multiple brokerage accounts based on the type of investor you're going to be whether it's a day trader whether it's dividends whether you want growth stock this a lot in this financial game like but you also got to ask yourself how bad how bad do you want though yeah like for me inv want to stay the same though investing is not an option like and also too if you think about stocks and reats that pay out passive income it's like buying a property right the more properties you buy the more income you're going to get so you can buy one and just be okay or you can buy a 100 and be and be phenomenal right so let's talk about that so you know there's so many different ways of getting real estate you got I teach event spaces right you got you got uh syndication you got buying holds you got flipping but majority of every one of those Avenues you need a significant amount of money to get in the game like to buy a to flip a property you need cash flow you need a loan you need I feel like with the reach you don't got to really worry about credit you don't need a $110,000 down payment you don't need a 3.5% down with FHA talk to me about I would like to own you know we both from Philly I want to own King of Prussia a piece of it right right talk to me about how do I get in the real estate uh leveraging reachs which is Real Estate Investment Trust right so first I've been watching your Instagram i' I've been studying as much as I could from the outside but that's why you're here cuz I need the inside track all right so Real Estate Investment Trust first key word is trust trust right so anytime you see the word trust no protection so no meaning no n o protection or no k n o know that it's a protecting something k n o w know it's protect anytime you see the word trust just know that is to protect you from something okay REITs protect the company from corporate taxes now with the re you are owning stock in a real estate company whose job is to own operate and manage incom producing commercial real estate so when you think about what it takes to get in commercial real estate right a whole lot more Capital this is a way for the everyday person we created in like the 60s where the everyday person can still invest in income producing real estate without having to do all the heavy so you mention king of Pria Simon Property Group is the number one mall operator in America they are a re meaning you can go into your brokerage account buy a share of Simon SPG and own a piece of every single Mall less than less than $150 a share wow and every share you buy they're giving you income so it's either every dividend or is that a gr it's it's now so it you're strictly when you buy a Reit you're not looking to flip so always look at a re like buying a property in the suburbs with a good tenant the value of property in the suburbs isn't going to you not it's not like buying a gentrified property in North Philly but it can grow gradually but you have a reliable and consistent tenant So when you buy reets you got to also ask what type of investor are you are you looking to flip or are you looking for income REITs are strictly for those who want passive income right now you go to your brokerage account you buy a re most reats are less than $200 the majority of all reats are less than $200 but here's the thing so remember I said that trust word by law they're not they're not going to pay corporate taxes but in exchange for not paying corporate taxes they have to pay out 90% of their taxable income to you meaning so literally I'm sure there have been people in who ow who've owed you money and there's no law stating that they have to pay you right your job doesn't have to pay you they can let you go in order for a Reit to be a trust they have to pay out 90% of that income to you so the more shares you own the more income you'll get now when we compare REITs to dividend stocks right both companies but dividend stocks they don't have to pay you that extra cash flow REITs do so REITs actually are known to pay some of the highest dividends out there because by law they have to so for every share you own assignment the more cash flow you're going to get but here's the thing you don't need credit you don't need to manage any tenants you don't have to use a real estate agent you don't have to be an expert you don't need a license you don't need any of that so you literally can take you literally are investing in a trusted partner who does this for a living they go get all the properties they manage all the tenants they do everything to build the property to they practically do everything for you your job is just to recognize the good partner let me ask you this so I want to make my money when you say they pay me every month so I buy a re call it $150 you say this gives me a return do I got to go in there and say pull out the money or tell me how does that process work so first off with a re you're going to get anywhere between 5 to 15% just in a return just from income annually right now when you buy the re it's all done you you you automatically go to the company they know you are a part owner of their business they send you the money that cash gets deposited in your brokerage account so you'll know based off of when their dividend is dispersed because every re pays a dividend on a different day so it's possible you own four REITs and they each pay you January February March and then we're circling back March April May June July August right so getting yourself into a space where one recognizing we are so conditioned think we have to work for everything like I watched our billionaire clients I would we would sit with their whole family the kids will have $34 million portfolio making making six figures in passive income so think about it if you have a $100,000 portfolio and the read is giving you a 10% dividend making $10,000 right every year crazy so but you're not managing a property you could you can go you can go get the same $100,000 loan buy a property and get $800 a month in rent it's the same it's the same thing you just don't have to do as much work and you don't have to leverage any debt thought about it like that now the other way you make money with re is that price can move same way the value of your home the only difference is there's no stock market to tell you the value of your house every day but the value of your home is going to fluctuate every single month right now that reap grows in value so for example during a recession interest rates are high when rates are High our debt is high REITs take out debt to build their real estate like most people do their payments are now higher so as an investor people would sell the re and Traders would sell the re because they think the value of the re is going down because their expenses went up because debt goes up the way I saw it was all reats are down right now just like all commercial real estate is down which means there there are reats that are down 50% in value the price I'm racking up but they value was down 50% but they're still paying out that that cash flow so imagine if you bought a property you wanted to buy a property in the suburbs of Philly right it's $100,000 but the Market's down you buy that property for 50,000 but you can still charge $800 in rent every single month but you know when the economy bounces back that that property has the ability to go back to 100,000 so now you made money on the value of the property and you're still getting your income but most importantly people are buying reeks because because of income you don't need credit you don't need a license you don't need to do a lot of heavy lifting there's no minimum to get started most reets are less than $200 but the thing about it is there's over $3 trillion dollar of reats that exist in America wow literally so this isn't something like that I just always tell people like I just make this up you can buy malls you can buy shopping centers you can buy data warehouses right we think about your phone where Warehouse where are all the where's all the data stored right you can buy um warehouses Industrial reats for example Amazon right two of Amazon's biggest landlords are stag industrial and pro pro lodes so you can buy all your products from Amazon but where do they store it it's stored in a warehouse Amazon isn't in the game of Real Estate they're in the game of getting your products to you fast fast as possible but they pay rent to a re if you own a piece of that reat you're getting a p portion of that income so now I'm able to make money by owning Amazon stock I'm able to make money by being Amazon's landlord Amazon's giving me some price growth the re is giving me passive income but I'm still shop on Amazon I bought ketchup the other day on Amazon like I'm still going to use the product but I'm also making money because I'm a owner of that company and their landlord that's called all money in I'm getting money all type of ways right now but but for Less Amazon stock is less than $200 yeah and the re is less than 200 one one of Amazon's landlord because it's split though right it's split Amazon yeah I said I feel like I boarded at like a couple thousand I feel like all right so look Ash I got to majority of families they got to set up gof fundies and all type of stuff when people pass away and not saying to that extreme but it's like I want to really set people always say I'm doing this for my kids but nobody really doing it for their kids like how many stocks your kids got right right right like like what real estate your kids like you know like what businesses they got are they financially literate I want to make sure my kids are really set so one what should my I got two questions one my daughter's 17 M how should she be well I guess well she's about to join your virtual event that's one way she's going to be getting educated but I guess what should she be doing financially right now to learn like I'm or your virtual event I figured that out second question I guess um for my kids I got a a oneyear old I got a 2-year old I got a three-year-old I got a 17 yearold my current style of investing now is more of a Buy and Hold okay MH because in my regular businesses we're able to generate Revenue quicker depending on what what businesses that we're we're talking about um but I want them to be able to turn 18 and be like Oh I got 100,000 in this account I got a million dollars in this account I got how do I do that am I putting aund am I putting $1,000 up a month like what am I doing walk me through creating by the time they're 18 cuz you got your little your your nieces and nephews was in Disney with them and they set up so how do I set my kids up so first thing you do is the same way you pay your bills you got to pay your kids so turn what you're investing for your kids into a bill as if it's an expense on your income statement and constantly add to it make that a standard how much what's the standard in general it depends on what you want which brings me to the next point when they're 18 not even 18 because again you need money for your kids before they're 18 so build Milestones I want to make sure so like for example my niece I want to make sure she has a portfolio of at least a million doar period I want to make sure she's bringing in at least $2 $3,000 of passive income period right a month or per year per month per month right so standard way right just on average let's say you're going to get a 6% dividend and that's low I I I have some RS that are paying out 15% but let's keep it standard you know that if you have a million doll portfolio 6% they're getting $60,000 a year yeah so focus on getting into get get to a million portfolio and let's say it's a Reit right Reit you might be able to raise it a little bit but again stick to six% yeah standard if I have a million dollars passively they're getting 60,000 but if I want $120,000 got to build a $2 million portfolio and then work backwards how much do I want to set aside every month to make sure I hit that goal by 18 to make sure I hit that goal by when they're 10 right now you're going to get there faster one make sure when you have your brokerage account set up for your kids when they're getting dividends turn on the drip feature which is located in your settings drip stands for dividend wait start that over again just so I don't want to miss that you want the drip feature turned on so it's you said something before that I need oh it's in your it's in your settings in your brokerage account you'll see it it's called but it's called dividend reinvestment program so just so um but my first step was the custodial account yes oh yeah yeah so get your custodial account now here's the thing what is a custodial account it's account where the child it's in the child's name run it and you don't have to be a parent so you every kid separate custodial account ocean account dream account kingmi Destiny own account yep do I even do this for my 17y older yep okay got it she it'll it'll become her account when she's 18 okay all right so open the custodial account you need your social and the kids social okay and if you got aunts and uncles they can also open custo like I'm I my my niece I run her account but it's in her name under her social we're both attached to it so I make the rules but it's in her that those assets are in her name under her social security number okay so first you get the account set it up transfer the money now when you're building that income turn on the drip feature dividend reinvestment program because you'll get to your goal faster so for example let's just say you're bringing in 12,000 a year right we we're we're getting somewhere you can take that 12,000 when drip is turned on it'll reinvest the 12,000 into the reats that you bought so in this case you you could be making money and buying more REITs which is increasing your income so you actually hit your goal faster but it'll reinvest the cash you get so now the cash won't just sit in your brokage account it the the system will automatically buy you more shares the moment that cash H your account so now you're buying shares with money that they're paying you and then still also adding to your brokerage account so I would say we can sit and do the math I need my laptop right now I'm trying the way you the way you the way you look at it though if I'm setting aside a certain amount of money every single month month adding that up each year timesing that by the number of years they have left to get to 18 again if we're just shooting for a million we know they're getting $60,000 a year like that's some people's annual salary but because you have so much time to build for your kids they can decide do I want to go have an annual salary or do I want to live off my divid that's what I saw on Wall Street I was literally watching kids making over $100,000 and I'm but the portfolio wasn't moving because they were living off the cash flow that was being produced by the portfolio that was the first time I saw Reit it was like why are they making all of this cash flow but it's because they're investing in companies that by law have to pay out income so now your kids don't have to do anything you don't have to manage any tenants but they're building the income off of re that you invest in you know how much cash flow they're paying and then you're able to collect that cash flow for them but I would say if you're not using that cash flow that's coming even in your portfolio if you're not using that cash turn on drip and have that that system reinvest the cash that that company is paying you wow W that's this is nice so all I got that I'm identifying how much I want to do a month I'm just putting this on auto like it's a bud a line item in my budget the other thing I would say too is specifically for me one of the things I do is you don't need a football team to win as an investor you need you need to start in five so determining what are my top five reats my top five growth stocks that I want to take me to the championship right because once you know let's let's do the math let's just say there's a re that cost $100 and they pay out a a 10% dividend you know you're getting $10 you know if you want to get $100 from that re you got to buy 10 shares right so do once you we can sit and do the math and I'm going to talk about this during the in the challenge there's a way you can just every re pay you a certain amount of money all you got to do is determine how many shares do I need to buy to hit my passive income goal and you can do that for your kids but again the easiest way average 6% you want a million dollar portfolio get to a million dollar how much do I need to invest over the course of 6 years seven years8 years to hit a million but you may say that might be too small and I would also challenge you every 90 days whatever you're putting into that account for you and your children increase it there was a point my niece I started with her I started with $35 she caught me she was born the moment I started empify and I was like I'm not while I can't do Millions I can't do thousands I got $35 so I was setting aside $35 every single month I wanted a share of Disney for her Disney at the time was like $100 it took me three months to get her one share but in my mind a whole lot of $35 over the course of 18 years adds up and and that was in 2017 do compound too it does because that that that price can also grow over time but I also got to a point where I didn't have to put $35 I could put 3,000 in right so as you're making more you if your bills are going to go up you're going to give your staff raises you got to give your kids raises too in their brokerage accounts can you do the deduct thing you know I believe you could pay your kids up to 12 Grand a year and you just put it all inside of the so now you have the write off for your business yeah they already paid the taxes and now you're put it in in the account for them to invest too absolutely let me ask you this cuz this is something I always want to do and I don't know the way of doing it so all my friends got birthday parties none of their kids need another toy another shirt how can I buy them a stock where like my goal is very like yo you you having a baby at 1 all right cool I'm going a one year birthday party here's a stock in Amazon don't touch it to the 18 so it's a couple ways you can do you can buy an actual certificate yeah where they have like a plaque on the wall somebody bought that for me and I don't know where is at yeah so you can do that it's a c it's only a couple ways that and I think the world is going to change way they do this there's a company called stockpile that allows you to buy gift cards they are actually the only company that I know for kids the sock pile is a great account for children it's like a coloring book for for kids right you can buy a gift card so you say hey I want to give your kid $1,000 of Amazon stock you can buy a $1,000 gift card for Amazon stock as long as that kid has a stockpile account they can buy shares of Amazon with that gift card Hey listen I had to stop the episode listen really quick this is the book responsible for making so many people grow their social media right their income their impact and influence leveraging social media and you're probably looking at like yo Neil I don't feel like waiting for you to ship me this book right y'all go to my igigbook right now mybcom get a direct download to get this in your inbox so you can immediately start leveraging the strategies this is over 86 pages every single chapter is going to give you a gym to grow your audience to grow your impact and to grow your your influence right and I literally created it for you this is the same thing I literally watch people go crazy with so go to my ig.com go ahead and claim your copy it will be in your inbox and when you do that buy everything that it comes with I got a IG course with it and a bunch of other things that I know is going to truly help you go crazy my ook.com go the other way you can do it you can also just you can also provide money and just make sure that money gets uh deposited in their brokerage account yeah depends on the relationship you have with the parent but you can give them the money this is what I want them to buy they have that brokerage account set up and then do check-ins every 90 days how's that stock doing how's their portfolio doing but for me with my niece got her stockpile one because stockpiles the other thing you can do too stockpile is really good for kids so you can have that account with your children right I recomend maybe about like seven or eight is when kids can really use it because instead of buying Disney ticker symbol dis they're buying Disney the logo so a kid can recognize instead of buying Nike they see the Jordan logo they see the Nike logo so they're more receptive to it but what happens is when the kid has the account they're managing their stock they can see it you're making a decision so you have your login they have their login so when they want to buy something you approve it when you when family's giving them gift cards they can deposit it put it in the account they can buy what they want but one of the things that I think even just outside of giving your kids money is doing it with your kids because there there's there's three types of parents you got the one parent they don't invest at all they you know they don't think they have money they can't do it that's most parents then you have the parent who does something but it's the kids don't know and then you have the parents who do it with their children so if you're buying stock and especially as a kids start to get old you got to let them know you own a piece of this company what companies do you want to invest in that's going to make you more money and then hey what do you want to use this money for we made $50 in your brokerage account what are we going to buy with that money but really as you're learning and as you're doing and as your kids get older showing them because one of the things about our clients on Wall Street and the reason why the Hilton family is a Hilton family why the why the Walton family is a Walton they own Walmart is because wealth is a standard of Excellence in a household so if I'm an investor my kids are going to be investors I'm going to show them the game because if I don't show them when they get this money they're not going to know what to do with it or they're not even or they're going to lose it so you got to groom your children hey this is what I'm same way I'm sure you want to bring your kids along in the business while we're doing this these companies are also working for us too hey I'm I'm over here buying stuff at Amazon I'm over here watching Netflix with you but we also own that company too so every time you turn that TV on they that company has to perform for me because every 90 days they got to produce their financials guess who they guess who they answer to me because I'm part owner of that business so getting your kids into this mindset that hey I'm using this but we own this let me show you how much we have and I think my parents did really good at setting money aside they weren't investors nobody really knew how to invest but I didn't know what a bill was until I had to pay a bill so what if I'm sitting here with you I'm learning with you Dad You're Building Wealth with me and for me but now I'm taking over the range by the time I'm 18 because I know how this game works which is why we went into the school system but the issue we have with the school system is we taught the kids they went home to their uneducated parents so we had to take emplify to a space where we can go in the school system but I got to talk to the parents cuz they're under 18 even if I gave the kids money which is stuff we did you can't get that account without a parent facts so if the parent doesn't know what's going on I had some kids buying Apple stock and the parent didn't even know what they were doing because the parent wasn't educated so in this case we can't build intergenerational wealth without touching every generation wow so in this case for you you're going to have these accounts when they start to get of age I'm making this commitment to set money aside if you really want to get good make the kids put money in with you the moment you get the 17-year-old you're making money you get that first job I'm setting aside a certain amount I want you to put in a 100 tell me what you want to buy now let's monitor that company let's see what they're doing let's see how much they're making to get them involved with that process wow I I believe what you just said is like the key to wealth is like showing your kids then or or kids showing the parent like really doing it together and it's funny I was uh earlier on like years ago I was trying to teach kids how to start a business and I changed it to start a business with start a business with your kid and that changed everything because now they both need the information like just the in info you giving me I don't know all of the stuff that you teaching me so I'm just excited now to really go implement this with my family and also just for them be able to learn this from you on a on a longer basis I when you get to a space too when like I know how to do this because I did it for people but you get to a point where if you have a if you have a passive income account dividend account for your kids and a grow stock account for your whole family we're talking about we have over 10 accounts now somebody has to keep track of that that's why JP Morgan was created that's where I used to work because you you get to I I literally have a clients who had hundreds of accounts and one of the biggest things I learned they all named their accounts there was no account that was set up that mixed money this was a shopping account this was the investment account this was a everything was organized by by purpose so for you it's like hey my passive income goal for my kids I'm thinking by the time I'm by the time they're 18 I want them to have at least 2,000 okay cool that means that they're going to have 24,000 I mean they're going to have what yeah 24,000 so you got to get yourself into a space where set the standard of what you want yeah and work towards that so if I want my kids to have a million dollar portfolio let's let's backtrack let's get to it and let the companies get you to a million faster cuz they're cuz they're making money for you yeah and here's the other thing which is crazy about that just the if your money sitting in your savings account anyway is not doing it let me ask you this so I got the money sitting in my savings account say I got $1,000 I can go put that whole $1,000 in the re am I able to take it out at any time so the first thing is if you have $1,000 in your savings account that's all you have do not put $1,000 just in I don't care how sexy it sounds you want to make sure that you're you're gradually getting into investing do not just dump your whole life savings if you are comfortable with a $100 start with 100 now with REITs that's the other difference you can sell a Reit just as fast as you bought it takes less than five seconds to buy it you can sell it just as fast so I remember when I started my business emplify and I was getting kicked out my apartment in Harlem right start my business money wasn't coming every two weeks I got kicked this was like 2013 I I had $30,000 when I left Wall Street I felt rich I felt like I was on top of the world Until you realize money doesn't come every two weeks when you run a business I did not have a savings account one our clients didn't they had money set aside but it was pennies if they had a bunch of money in the savings we were trained to put it to work even if they bought normal dividend stocks which weren't you know give them three four 5% they had to put it to work because they were losing because of inflation while you might not think inflation is a lot if your job is to become a a millionaire a billionaire you got to start thinking like them no wealthy person is just parking cash under their mattress they're not right no wealthy person is just settling for a savings account because we all can say we know people who saved and worked really hard and still are working and saving really hard right like that is not the only way to wealth that's what America has taught you but that is not the way you go to create the life that you want and times are different so when those clients had to invest it I was training myself we're not using I'm going to be just like those clients I'm not working here anymore I'm going to go build me a JP Morgan and I'm going to be that client so I'mma travel like these clients I'm I'm I'mma read books like these clients I'mma invest like these clients they started with 100 million I started with $100 so you got to get to a space where it doesn't matter how far you are from your goal take a few zeros off and just start somewhere that's good but get yourself into a mindset that this is not an option and and recognizing that this is one thing people don't know let me like I work for a bank Banks run this country period when you put money in the savings account they loan it to people who take out debt car loans student loans credit cards mortgages if everyone takes all their money out of a savings account America doesn't work so they encourage you to save they entice you with these interest rates because they want you to park your money so they could go make it flip right so I'm giving you 4% but but but a car loan is about 9% now they make the spread again is it a scam no it's a business just like if you and you you're in school you bought a bag of chips for a quarter you wanton to sell it for a dollar like everybody has to make money it makes sense but if you know I've been saving all my life my family's been saving all their life I've been working on my life but I'm still not right that means something in you has to change so that chain is going to be uncomfortable but let's ask yourself what are millionaires and billionaires doing in my mind let me just show you what they do you got to let go of the fact that you have to set money aside so with that same, take a couple hundred and buy a re now when I left my job and all hell broke loose my stocks were how I started emplify because when I needed cash I sold them you don't have to wait for a buyer you don't have to wait for an agent you don't have closing costs the same way you bought it instead of clicking buy you click sell that cash will hit your bank account the next day sound too good to be true but it but but it's but remember these are this this is this the game they've been playing for years but this is a way for the everyday person to collect income I think what we got to recognize is so what you're not getting thousands of dollars yeah like so what if I always ask people do you have $250 of passive income coming in every year most people say no yeah so let's start there how about we get $10 passively every month with no let's cover the Netflix bill let's cover the Spotify bill right once you knock that bill out let's get to the next bill let's and I always tell people start small train yourself to knock saying with your children train yourself to knock out small Milestones I know that I want them to have $2,000 right I know I want them to have $2 million get yourself to a space where like hey I'm making more I double Revenue this year that means I got to double what I'm giving my kids too so it becomes a habit and that's what we got to once we cultivate The Habit yeah it becomes a way of life there is not a Time every month I don't care when I had no money or a lot of money where I was putting money and then putting in my life insurance policies putting it in my brokerage accounts setting money aside for just paying myself while I didn't have thousands I had 10 and you're training yourself to know you you're a priority and you're getting closer and closer to your goal next thing you know the game changes you're putting in $10,000 next thing you know you look up your brokerage account is now $50,000 because you weren't afraid to start with $5 yo listen to me we about we going to wrap up this episode cuz I'm talking about the game in the heat that Ashley just dropped I don't know if you're listening to this but what I'm challenging you to do right now is take the game that she just share and take it serious like I don't know if you guys know in our culture like most kids or not most a lot of kids like their credit get messed up because their parents putting Credit in their name at a young age but let's go and change that let's put stocks in our kids' name right let's go put REITs in our kids name let's go put businesses in our kids' name so when they grow we literally can really change the direction of this and again I know only actually been here for 30 to 45 minutes y'all if you're looking at this right I want you guys to go to mycashflow creation.com y'all heard what she just said I want you guys to go to mycashflow creation.com Ash is hosting a five day virtual event where she's literally going to break all of these things down in a much longer time like we spent 30 to 45 minutes imagine spending a week with her learning the game and I truly believe this will be the last virtual event you need to help you create passive income wealth leveraging RS and leveraging the stock market so um make sure you guys get tapped in again I want to thank y'all for joining this episode hope you guys got game actually let them everybody know where they can find you at and tap in with you so on social media I'm unor Ashley M fox um you can shoot me email m stands for money I like that um and my email is info@ empi.com but yes my cash flow creation we're covering money management talk about getting rid of debt massive income with re dividend stocks but also making sure we preserve that wealth good it's about building it for our families and building it for oursel but doing it together so from start to finish let's get started matter how much money you do or do not have Brick by Brick we are building so if you got $5 you can start investing you can start building passive income let's go y'all see y y'all inside peace
Kevin O’Leary: Why Early Retirement Doesn’t Work
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
This whole idea of financial independence retire early doesn't work. Let me tell you why. It happened to me. On the sale of my
first company, I achieved great liquidity and I
thought to myself, "Hey. I'm 36. I can retire now." I retired for three years. I was bored out of my mind. Working is not
just about money. People don't understand this very
often until they stop working. Work defines who you are. It provides a place where
you're social with people. It gives you interaction with people
all day long in an interesting way. It even helps you live longer
and is very, very good for brain health. Staying stimulated is how people
live into their 90s. I'm not kidding. So when am I retiring? Never. Never. I don't know where I'm going
after I'm dead, but I'll be working when I get there too..
Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video
Rethinking Retirement: Advice to those thinking of retiring
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
ONCE AGAIN. >> IT'S TIME FOR RETHINKING RETIREMENT WITH MARVIN MITCHELL, FOUNDER AND PRESIDENT OF COMPLEX RETIREMENT SOLUTIONS. HAPPY HOLIDAYS TO YOU. HAPPY HOLIDAYS THE GREAT TIME OF YEAR. MANY OF OUR VIEWERS SPENDING MORE TIME WITH THEIR FAMILIES THINKING ABOUT THOSE MEMORIES AND AND WANTING TO SPEND MORE TIME AND WONDERING, WELL, MAYBE I NEED TO SPEND EVEN MORE TIME WITH MY FAMILY. THAT'S GOOD. THINKING ABOUT RETIREMENT. WHAT ADVICE WOULD YOU GIVE SOMEBODY ON MAKING THAT DECISION AT THE RIGHT TIME TO RETIRE >> YEAH, I MEAN, YOU'RE ABSOLUTELY RIGHT. I MEAN, WHEN YOU SPEND TIME WITH THE FAMILY, YOU START TO REALIZE, MAN, I WISH I HAD MORE THAT I WAS KIND OF LIKE WHAT HAPPENED WHEN PEOPLE WERE FORCED TO STAY HOME AND THEN IT WAS TIME TO GO BACK TO WORK.
AND A LOT OF PEOPLE WAS LIKE A KIND OF LIKE STAYING HOME. SO A LOT OF PEOPLE LEAVE QUIT THEIR JOBS OR SOME PEOPLE BECAME ENTREPRENEURS. WELL, IT'S KIND OF THE SAME THING WITH RETIREMENT. SO I WOULD SAY BEFORE YOU DO SO WE WANT TO MAKE SURE THAT YOU DO WITH A PLAN. NOW, ONE OF THINGS THAT YOU NEED TO DO IS THAT I WILL RECOMMEND YOU GET AN INCOME PLAN. THAT INCOME PLAN IS GOING TO HELP YOU WITH 3 AREAS. NUMBER ONE, WHEN YOU RETIRE, YOU WANT TO RETIRE? WITH COMFORT. OKAY. THAT MEANS YOU WANT TO KNOW. DID YOU CAN STAY RETIRE WITH DIGNITY AND NOT BE FORCED TO GO BACK TO WORK WHEN YOU REALLY DON'T WANT TO. WE ALSO WANT YOU TO BE CONFIDENT AND CONFIDENT COMES BY KEVIN CLARITY, CLARITY REALLY ONLY COMES BY HAVING A PLAN AND YOU ALSO WANT TO HAVE CONTROL OVER YOUR RETIREMENT, WHICH MEANS YOU DON'T NEED A DICTATOR.
AS A FINANCIAL ADVISOR, YOU REALLY NEED SOMEBODY IS GOING TO TAKE ABOUT A HAND HEMP. YOU HAVE MAKE THOSE DECISIONS AND NOT FORCE ANYTHING UP ON YOU. SO FIRST THING I WOULD TELL US TO HAVE A GOOD PLAN, RIGHT? AND PART OF THAT PLAN INCLUDES HEALTH INSURANCE, WHICH IS SO CRITICAL IN RETIREMENT. MANY PEOPLE DON'T RETIRE BECAUSE THEY THINK THEY HAVE TO BECAUSE THEY HAVE TO PAY A LOT FOR HEALTH INSURANCE. FIRST OFF, THERE ARE WAYS TO MINIMIZE OR HEALTH INSURANCE. IN FACT, WE HAVE AN ENTIRE DIVISION THAT HELPS YOU OUT WITH YOUR HEALTH CARE IN OUR COMPANY, MEDICARE, ALL OF THOSE THINGS, BUT ALSO PUT INTO PERSPECTIVE. LET'S SAY YOU HAVE A MILLION DOLLARS AND YOU HAVE ENOUGH TO RETIRE ON. YOU DON'T RETIRE BECAUSE OF HEALTH CARE. IF YOU DO THE MATH SAID ONLY COST YOU 27,000 OVER THE NEXT 5 YEARS. IS PAID $27,000 OUT OF A MILLION DOLLAR PORTFOLIO. KEEPING YOU FROM RETIRE AND SPEND TIME WITH THE FAMILY. SOMETIMES IT MAKES SENSE JUST TO PAY FOR IT RIGHT.
YOUR TIME IS WORTH MUCH MORE THAN $20,000. THINK OF IT THAT WAY. SO DON'T LET THAT STOP YOU FROM RETIRE. AND IF YOU FEEL THAT IS THE RIGHT TIME TO RETIRE, RIGHT? AND YOU CAN GET MUCH MORE DETAILED INFORMATION FOR FREE OR FROM MARTIN'S BOOK. YEAH. MY BOOK RETIRE EARLY. THE 9 CRITICAL DECISIONS WILL RETIRE BEFORE 65 SOME OF THOSE THINGS. WHEN SHOULD I RETIRE? SHOULD I PAY OFF MY HOUSE? WHAT SHOULD I DO WITH MY 4 O ONE K SHOULD HAVE A STATE PLAN TO AVOID PROBATE. ALL OF THOSE QUESTIONS ARE ANSWERED IN MY BOOK. RETIRE EARLY. DO YOURSELF AN EARLY EARLY HOLIDAY. GIVE YOURSELF A HOLIDAY GIFT AND GET THIS BOOK RETIRE EARLY TONIGHT, CRITICAL DECISIONS BY GOING TO RETHINK IN RETIREMENT DOT NET AND GET GET MORE THAN ONE. THEY'RE GOOD STOCKING STUFFERS GIVE THEM TO .
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Vanguard Group founder on how to manage your 401 (k) plan
Jason 0 Comments Retire Wealthy Retirement Planning
>>> WELCOME BACK TO WALL STREET. HERE'S MORE OF MARIA'S INTERVIEW WITH INVESTING LEGEND VANGUARD FOUNDER JACK BOGLE. MARIA: LOOK AT HOW MANY INDEX FUNDS THERE ARE. 5,000 INDEX FUNDS TODAY VERSUS THE NUMB OR F STOCK LOWER, 3,385 STOCKS. WHAT DOES THAT TELL US? >> IT TELLS US THAT PEOPLE ARE CRAZY, MARIA. WE DON'T NEED 5,000 INDEX FUNDS OR 6,000. THE WHOLE IDEA OF INDEX FUNDS WAS SIMPLIFY, SIMPLIFY, SIMPLIFY, RIGHT OUT OF RALPH WALL DO EMERSON. SEMP FIE SIMP FIE SIMPLIIE SIMPLIFY EVERYTHING. WE'VE NOW COMPLICATED IT BY GIVING PEOPLE MANY CHOICES AND BUILDING A SYSTEM WHERE THEY CAN TRADE THOSE CHOICES IN THE GLOAT GROWTH AND OUT OF VALUE AND SO ON. SO THERE'S TOO MUCH TRADING GOING ON, WHICH IS THE INVESTOR'S ENEMY FINALLY. THE ANSWER IS TO BUY AND HOLD THE STOCK MARKET VERY WELL EXEMPLIFIED BY THE 500, AND HOLD IT FOREVER.
AND THAT'S THE WINNING STRATEGY. ANY OTHER STRATEGY INVOLVES CHANGING THINGS. AND OVER AN INVESTMENT LIFETIME YOU COULD PROBABLY HAVE 40 CHANGES, 50 CHANGES. THERE'S IN WAY THAT CAN BE A WINNING STRATEGY. MARIA: YOU MAKE A REALLY GOOD POINT. WHAT ABOUT THE IDEA THAT PEOPLE WANT TO CASH OUT SOMETIMES. I MEAN, WHAT ARE YOUR MOST IMPORTANT ISSUES IN TERMS OF SELLING? YOU SAY HOLD ON FOR A LONG TIME. BUT WHAT IS A LONG TIME? WHEN CAN YOU ACTUALLY GET THOSE RETURNS AND WHAT DO YOU LOOK FOR AS A RUN TO SELL, JACK? >> THAT'S A GREAT QUESTION.
I GUESS MY FAIR TIME PERIOD IS THE SAME AS WARREN BUFFET'S TIME PERIOD, FOREVER. YOU KNOW FB FOR YOU KNOW,FB FOR YOU KNOW, F FOR YOU KNOW, FOROR YOU KNOW, FOR YOUR WHOLE LIFE. THERE WILL BE OPPORTUNITIES ALONG THE WAY. WE'VE SEEN THEM IN THE LAST 25 YEARS. TO GET OUT AND GET BACK IN. MARIA: VANGUARD IS CHANGING. THE RETIREMENT PLAN.
NOT HAVING THE FLAGSHIP S&P 500 FUND IN THE 401(k). WHY IS THAT. WHAT IS YOUR REACTION TO THE FACT THAT VANGUARD IS DROPPING 12 FUNDS FROM THE EMPLOYEE 401(k) RETIREMENT PLAN? IT WILL NOW OFFER 15 FUNDS, DOWN FROM 27. WHY? >> WELL, THE ANSWER IS THAT COMPANIES ALL OVER THE COUNTRY, AND I PRESUME VANGUARD, ALTHOUGH I DON'T RUN THIS PLACE ANYMORE, THERE HAVE BEEN TOO MANY CHOICES IN RETIREMENT PLANS. YOU COULD RUN A RETIREMENT PLAN WITH THREE OR FOUR CHOICES WITH ABSTOCK INDEX FUND, A BOND INDEX FUND, A BALANCED INDUCKS FUND AND THAT COULD BE IT AND INVESTORS CAN MAKE THE CHOICES EASILY. AN ASSET ALLOCATION ISSUE. AND BY GIVING THEM QUITE SO MANY ISSUES AT VANGUARD, NOT IN THE INDUSTRY GENERALLY, WE'VE CONFUSED INVESTORS. FOR VANGUARD IN PARTICULAR, THIS IS NOT GOING TO SURPRISE YOU, I THINK IT'S TOO BAD NOT TO HAVE THE 500 AS AN OPTION.
BUT IT'S PRETTY MUCH INDIFFERENT FROM AN INVESTMENT STANDPOINT BECAUSE OUR CREW MEMBERS, AS WE CALL THEM HERE AND BOGLE HIMSELF, JUST GO INTO THE TOTAL STOCK MARKET FUND WHICH IS 85% OF THE S&P 500 ANY WAY. I LIKE THE S&P 500 BUT I'M PERFECTLY SATISFIED WITH THE VANGUARD TOTAL STOCK MARKET INDEX FUND. A LITTLE BROADER. MARIA: WHAT DO PEOPLE NEED TO KNOW ABOUT THEIR 401(k) PLAN. I FEEL LIKE PEOPLE PUT THEIR MONEY IN THE 401(k) AND THEY DON'T NECESSARILY KNOW WHAT THE PLAN IS INVESTED IN. IS THERE ANY ADVICE YOU WANT TO GIVE US IN TERMS OF MANAGING THEIR 401(k) PLAN? >> WELL, THE LESS YOU MANAGE YOUR 401(k) PLAN THE BETTER. MAKE SOME CHOICES, ASSET ALLOCATE — ALLOCATE YOUR ASSETS, TO SOME DEGREE BASED ON YOUR AGE, AND YOU CAN DO THAT OF COURSE THROUGH THESE POPULAR TARGET DATE RETIREMENT PLANS IN WHICH VANGUARD IS SO TOTALLY DOMINANT IT'S ALMOST NOT WORTH TALKING ABOUT, AND GRADUALLY BUILD UP A BOND POSITION OVER A PERIOD OF TIME.
BUT THE OTHER OPTION IS EVEN SIMPLER AND THAT IS BUY THE BALANCED INDEX FUND, YOU'LL BE 60% IN STOCKS AND 40% IN BONDS FOR THE REST OF YOUR LIFE AND THAT MAY EVEN BE A BETTER STRATEGY. ONLY TIME WILL TELL. MARIA: IT'S SO IMPORTANT, JACK, JUST THIS WEEK WE LEARNED THAT THE SOCIAL SECURITY FUND IS GOING TO BE TAPPING INTO ITS FUND FOR THE FIRST TIME IN 36 YEARS. PEOPLE NEED TO UNDERSTAND SOCIAL SECURITY MAY NOT BE THERE FOR YOU WHEN YOU RETIRED. THE 0 NOWS THE O NOWS THE ONUOWS THE ONUSWS THE ONUS IS ON INDIVIDUAL TO MAKE SURE THEY HAVE A 401(k) AND SAVINGS IN THE STOCK MARKET, CORRECT? >> THAT'S CORRECT BTS.
I WOULDN'T WRITE OFF SOCIAL SECURITY QUITE SO SOON. I DON'T THINK THE NATIONAL POLICY OF THE UNITED STATES OF AMERICA, I BELIEVE THAT POLICY PRECLUDES A SIGNIFICANT REDUCTION IN SOCIAL SECURITY. AND TO ME IT'S KIND OF SAD THAT WE COULD FIX WIT SUCH TINY LITTLE CHANGES, CHANGE THE RETIREMENT AGE A LITTLE BIT, MAKE THE SOCIAL SECURITY MINIMUM.
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Passive Income Ideas to build wealth | 2022
Jason 0 Comments Retire Wealthy
Hi, I'm Samarth from Wint Wealth. Imagine if you can make 1.2 lacs per year, apart from your regular source of income, why is this extra income required? I have a dream of owning a house. Someone might have a dream of owning a big car. Someone might want to send their children to a big university for higher education. Or someone might want to go on a world tour.
And it is not necessary that your regular source of income, is enough to help you achieve all of that. That is where the potential solution comes in. It's called passive income, but what is passive income? Passive income is any income which you generate by putting in lesser effort than your regular job or business. Hear this out carefully, I said lesser effort, had it been no effort then probably everyone would have been a crorepati. Would you believe that Warren buffet who is one of the world's best investor ever makes $4.3 billion per year, just through passive income wherein he has invested his money only in five stocks.
Today, we'll be talking about all avenues that you can probably explore easily to generate some additional passive income. First stream about which we'll talk is equity. Everyone wants to put their money into the stock market. But is it actually passive income? The answer is no, this is where dividend stocks or dividend mutual funds come in. Everyone knows what dividends are. But let me explain it to you in a very simple way. Let’s say you bought some shares in a company.
Now this company would be earning some profit through its business. Company has two options. Either it can reinvest that profit in the business to generate higher income, or it can distribute a part of its profit among its shareholders. When such profit is distributed among the shareholders, we call it Dividend. The stocks which pay dividends more than the industry or have dividend yield higher than the industry average, are called dividend stocks. Dividend mutual funds invest only in stocks which qualify as dividend stocks. Typically dividend stocks pay a dividend at least once or twice in a year.
That is the reason we have put them in the list of passive income. Where you will generate at least one income stream in a year. If you want to know which stocks actually perform very well as dividend stocks, we will be showing the chart on the screen right now. You can select some of these stocks as a part of your portfolio and help create a regular stream of income for yourself There are multiple other options through which you can participate in the equity market, but we aren’t focussing on them right now. And the reason for that is, all of them or probably the majority of them will qualify under active investment. We are only talking about passive investment and that is why we are only focusing on stocks which are dividend stocks or dividend mutual funds. Now we'll be talking about the second option, which you can explore, that is debt. You can have a lot of options under debt. You can invest in bonds. You can invest in bonds. That bond can be issued by governments. It can be issued by state governments. It can be issued by public sector undertakings, or they might be corporate bonds issued by private companies also.
Aside from bonds, you can put your money in fixed deposits. You can go to a bank, get a fixed deposit done. You will keep getting regular income, or you can put your money in post office saving scheme, Kisan Vikas Patra, et cetera, There a lot of schemes opened by the government where you can get a regular stream of income. Having said that, today, we will classify all these options as high risk, medium risk or low risk. Firstly, we will discuss about low risk. Low risk instruments include government bonds and fixed deposit. As of today, government bond of India 10 year benchmark is stating at around 7.50% which in itself for 10 years is a good rate, considering that it is the highest rating, which can be available to anyone, i.e. sovereign rating. Apart from that, you can go to any of the banks and open a fixed deposit and ensure that you get a regular stream of income monthly, quarterly or yearly or at maturity, depending on the option you choose.
Second, we'll talk about the medium risk options. Under medium risk options, we have corporate bonds. These bonds are issued by different companies. They can be issued by public sector, undertakings or private companies can also issue these bonds. And their risk is completely dependent on the entity, which is issuing it. If a triple rated entity is issuing it, then the risk factor is very low.
But if an entity, which is rated lower than triple a is issuing it, then the risk factor increases accordingly. By the way, if you want to explore corporate bonds then you can visit www.wintwealth.com where you can explore investment in corporate bonds wherein you can easily generate 9 to 11% fixed returns for short to medium term that is 12 months to 24 months. Another option which can explore under medium risk category under debt segment is money market funds. Money market funds are typically those mutual funds, which invests its corpus in short term instruments available in the market like treasury bills or commercial papers. Moving to the third category that is the high risk category. To generate fixed returns you can explore P2P lending. Having said that it's a high risk category and you should only invest your money when you are comfortable taking an exposure on any P2P platform. Third category. If we are talking about investments and not including Real Estate, then it will not be fair. Slowly, everyone is moving to an access based system rather than owning something. What I’m trying to say will be clear to you through this example: Everyone wished to have their own their own vehicle, their own car, but not everyone wants to invest that lump money upfront.
What do they end up doing? They enjoy the car ride by renting Ola or Uber. By the way, If you want to know more about renting a cab versus owning a car, please click on the link above and watch this video. Similarly, there has been a shift in renting out spaces rather than owning them. Smart Real estate investments can help you ensure a regular inflow of money through a income stream. Let’s say you decided that you want to invest in real estate. What options do you have? You can buy a flat or a house and rent it out for regular income. You can buy a land and lease out to any business for generating income. Or you can invest in funds which themselves invest in real estate. We'll talk about these in detail later in the video If you want to buy a flat or a house, you can probably choose a flat in a commercial area. For example, In Bangalore there are a lot of IT hubs. You can probably buy a flat near to one of the IT hubs and rent it out.
Because you are buying the house near a IT hub, then definitely there will be a lot of demand. If there will be demand, rent will also be better. You can expect in Bangalore, rental yield of around 3.5 to 3.6% yearly. I know this is very less, but if you conservatively assume that you flat or real estate’s value increase by 4-4.5% on an yearly basis, which is very conservative then also you're making a healthy income of, overall healthy income of, approximately 7.5-8% with a very solid asset being a part of your investment.
But real estate investment is not as easy as it sounds. Before selecting any property there are certain things which you need to take care of. Location of the property, Valuation of the Property, is that area providing good rental yield and more than that is there a demand for rented properties in that area. But if you don't have so much of time or you don't want to take the risk of investing your money directly in real estate, you can explore REITS i.e. real estate investment trust. In simple word, when you don't have the expertise or you don’t want to invest your time in selecting stocks then what you do? You invest in a good mutual fund. Similarly when you don’t have the time or the amount to invest in a real estate i.e.
A flat or a house or a land, you can invest your money in REITS. What REITS are? They're essentially mutual fund, which invest the pooled money into real estate properties. Whatever income is generated from these real estate properties, a part of it, in fact a majority part of it, is distributed among the unit holders as dividends. That is why it's a very simple way of taking exposure on real estate. Another option to take exposure in real estate is INvITs. Similar to REITS, here investment takes place in real estate only. Only difference is investment happens in infrastructure projects like roads. Here as well, whatever income these INvITs earn, majority part of it is distributed among the unit holders as dividend. Now that you've talked about the options where you can put your money to generate some passive income. It is also necessary to know that how much money do you need to invest in which stream, so that you have a balanced portfolio and a good inflow of regular income. Your portfolio composition will depend on a few factors.
Some of them are: your age, your risk appetite, your financial independence, and your goals. If you are around 30 years old, or you do not invest too actively, so I'm assuming you must be having some surplus funds. Let's assume that you’ve around 15 Lacs of surplus funds. If you invest these 15 Lacs of funds in these passive income options, so basis our calculation, we can assume that you will be able to generate around 8% per annum safely in these options, which translates to 1.2 lacs per year. If you have additional rental income from any of the investments which you might have done before, then this number might increase.
If you are in your early twenties or mid-twenties, our advice would be that you should be aggressive with your passive income investment. By that we mean, a major portion of the amount you will be investing in passive income options, should be invested in dividend stocks or dividend mutual funds, i.e. equity side. If you in your mid-thirties or early forties, then you can have a good balance of dividend mutual funds and dividend stocks, plus debt. Under debt as well, probably corporate debt more, because it'll help you generate returns closer to nine to 10% and you should aspire to save enough that you can probably get one real estate, which will help you get more income later.
But if you are in early fifties or probably closer to retirement, or if you have already retired then you should focus only on options wherein your capital is protected to a great extent. And it also helps you generate some additional income. Before we end, passive income doesn’t mean you invest your money and sleep. For every single penny that you invest, our advice is monitor them, not too actively as you do with your regular job or regular business or regular equity investments.
But our advice is any investment that you do, you should keep an eye on it. Passive income will help you generate a huge amount of income flows over the ears. And please do consider it as a very active part of your portfolio. By the way, if the recent market down trend has you buried, then you can watch this video. In this video we have tried to give out some tips wherein even during a market down trend, you can keep your money safe in the stock market and probably end up generating some more money.
Until we meet next time, happy Winting!.
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What Is IRA-Eligible Silver?
Jason 0 Comments Retire Wealthy Why Gold IRA
Most people know that gold can be a powerful asset when held for an extended period in a retirement account, but silver can too, and many silver coins and bars are approved for inclusion in a Precious Metals IRA. Silver can be kept in what's known as a Self-Directed IRA. This type of IRA can hold physical precious metals and other alternative assets, like real estate, to help diversify your portfolio. IRA-eligible silver must be produced by a government mint or accredited manufacturer and meet a minimum fineness of 0.999. IRA-approved silver coins include: 1 oz. American Eagle bullion coins. The Silver American Eagle is one of the world's only silver bullion coins that is fully backed by the U.S. government for its silver content, weight, and purity. American Eagle proof coins. These IRA-approved silver coins offer benefits that extend beyond their weight in silver, including a lower mintage compared to their bullion counterparts.
Australian Kookaburra coins. The silver Kookaburra's design changes each year. They are minted in four weight denominations, all of which meet IRS requirements. Austrian Philharmonic coins. The silver version of the Gold Philharmonic coin debuted in 2008 and is an outstanding complement to its gold counterpart. Canadian Maple Leaf coins. Made of .9999 pure silver Silver Canadian Maple Leaf coins rank among the world's purest silver coins. Some silver bars are also eligible for IRA inclusion and can be great for large scale diversification. Silver products that cannot be kept in an IRA include: Silver that you already own, or certified silver from a third-party grading service. Silver offers many benefits when added to your retirement portfolio. Silver, like gold, is a tangible asset. Silver has shown to grow as an asset over the long term. Silver costs less than gold. It has historically been the most affordable precious metal. Silver has a long, documented history. The Romans minted their first silver coins in the early third century B.C. Call U.S. Money Reserve today to learn more about IRAs that include physical silver.
Click the link in the description to request your free Precious Metals IRA Information Kit. It's full of everything you need to know about getting started on your Self-Directed Precious Metals IRA today..
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