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The $65,000 Roth IRA Mistake To Avoid

– I've seen too many of
you making some mistakes when it comes to investing
in your Roth IRA. One of them could cost you
$65,000 and the other one could cost you almost $500,000. You guys are seriously going
to make my beard turn more gray than it already is if
you don't knock it off. So let me show you what to watch out for, that way, you don't lose more money than you have to and
I can save a few bucks on hair dye for a couple more years.

A Roth IRA is a self-directed
retirement account where you can contribute after
tax dollars to be invested. Since the money going in is taxed, the growth of your investments are not taxed and the money withdrawal from the account are never taxed either, as long as you don't try to pull out some of the money before the age of 59.5. There is no such thing
as a joint Roth IRA. So if you and your spouse
want to contribute to one, then you'll have to do it individually, hence the name Individual
Retirement Account. If you both have enough
earned income separately, then you can each invest up to the $6500 limit for the year. If one of you works and the other doesn't, but you file a joint tax return, then the person working can, of course, contribute to a Roth IRA and
your spouse can contribute to a Spousal Roth IRA as well. Remember, these accounts are
owned by the individual person and on paper, not co-owned by both people.

I want to try to encourage you to max out your Roth IRA every single year, if possible, because if you
don't do it for that year, then in the future you
cannot go back and contribute for a previous year once that time limit has passed. A Roth IRA is one of those accounts where I would bend over backwards to make sure that I can
put in the full amount allowed every single year. In my order of operations for
what to do with your money, I have maxing out a Roth
IRA right after investing up to your employer match and HSA. That is how important
this type of account is. The good news with this
is that you actually have a timeframe of 16
months to contribute for each calendar year. So if we are in 2023
right now, then you have from January 1st, 2023, up until
when taxes need to be filed for that year to contribute,
which in this case, would be April 15th, 2024.

That's how it is every single year, so ignore the actual dates in my example and pay more attention to the timeframes since the date taxes are due
will change by a few days from year to year. Most brokerages will ask
you which year you want to contribute to. For example, I personally
invest using M1 Finance, which you can check out down
in the description below, and also get a deposit bonus as well. If I contributed to my Roth
IRA through them right now, then they would ask if I wanted the money to go towards 2022 or 2023, since at the time of recording this, we haven't hit the date
where taxes are due. This is great because it
gives you some extra time beyond the current year to
contribute Roth IRA money for that year.

Before I tell you the next mistake that I see way too many people making, please help support my dog Molly by hitting that thumbs up
button and sharing this video with anyone you think it would help. Once you deposit money into your Roth IRA, there's one more extremely important step you need to do that I see a ton of people missing, and that is
actually investing the money. I can't tell you how
many people I've talked to over the years who just put money into the account assuming
it would automatically grow, or knowing that they
needed to invest the money, but just forgetting to do
it because life happens, and things naturally slip out of our mind, only to check their account
balance years later, realizing that it hasn't grown in value because they didn't invest the money.

Stop the nonsense here and
just set up auto investing within your investment account, and if you're waiting because you think that you can time the market
to buy in at a lower price, you can't, because it's
nearly impossible to do, so just to get the money
invested right now. If you know how you want to
invest the money, then great. If you don't, then I personally
like the two fund portfolio for people who are in
the accumulation phase of investing and in the
three fund portfolio for when you're closer to
retirement or in retirement.

I'll have a link to a
playlist then I made just for you where I teach you
about both of those portfolios down in the description below
and above my head as well. When you contribute to a Roth IRA, all of your money is not
locked up until 59.5. You can withdraw the
contributions that you've made before that age without paying a penalty, but you cannot withdraw any of
the gains within the account. For example, if you've contributed $6500 and the account has grown to $10,000, then you can withdraw
the $6500 contribution, but you cannot touch the $3500 gain without paying a penalty until 59.5. I've gotta interject for a second to give my personal opinion on this. While withdrawing money
penalty-free is an option, I want to encourage you not to do this. To be brutally honest, I think that doing this
is one of the dumbest, most irresponsible, short-sighted
things that you can do.

Withdrawing just $6500
worth of contributions would cost you $65,000 in
future investment growth. So when any money is
taken out of this account before retirement, think
about how it's actually going to cost you 7,800 Chipotle burritos, or 65 new Apple iPhones, or anything else that you would buy for that amount of money. And yes, I am fully aware
that you can do a penalty-free early withdrawal up to
$10,000 before the age of 59.5 for a first time home purchase. But this is just as stupid as withdrawing your contributions early
because that $10,000 is costing you over $100,000
in future investment growth when you pull that money out. Average annual home appreciation over the past 12 years has been 6.11%, and the US stock market
has returned 12.27%. Leave your money in the freaking Roth IRA and go earn that $10,000 that
you need to buy the home. Responsible investing takes time, like five or 10-plus years, and this money needs time to grow.

The second you withdraw
any of your contributions, you are cutting down that tree before it even has a chance to grow fruit. Once you withdraw
contributions from the past, you cannot replace that
money in the future. I get that emergencies happen in life, so that's why you need
to have money set aside in an emergency fund to
pay for those things. Do not, under 99.999% of circumstances, use your Roth IRA money for anything other than when you retire. One thing I see way too many people doing is investing in a
taxable brokerage account before they have their Roth
IRA maxed out for the year.

This is a huge mistake from a tax savings
perspective for some of you because of how each account is taxed. With a Roth IRA, you invest with money
that's already been taxed, so the money can grow tax-free
and be withdrawn tax-free. With a taxable brokerage
account, you are paying taxes for the ongoing dividend
distributions every single year. Then you have to pay capital gains tax when you go to withdraw the money.

Since the money within
a Roth IRA will grow and can be withdrawn tax-free, realistically, you want
this account to get as large as possible, but not at the expense of
your personal risk tolerance. You should not take on
additional levels of risk by investing in more
risky, unprofitable stocks that random YouTubers have been pumping over the past few years or actively manage funds to
try to achieve higher returns. 99% of people, including
myself, cannot handle investing in something with a
high risk and potential, potential, high return. So don't even bother. The money in this account
is for retirement, so is it really worth it to risk that 60-year-old's financial wellbeing because you decided to gamble with their money right now? I doubt it. Some of you might be over
the income limit to be able to contribute to a Roth IRA, or some of you will be at
that point in the future as your income grows. You can still contribute to a Roth IRA to take advantage of the tax-free growth by doing a backdoor Roth. To simply explain the process,
all you do is contribute to a traditional IRA.

Do not invest the money yet. Then contact your brokerage
to have them convert the money to a Roth IRA. Now, I have done it with M1 Finance before and it was extremely easy. It only took I think two or three days for the money to get into my Roth IRA. Only do this if it makes sense based on your current tax rates
and future financial plans. There's two things that you can do. if you are someone who thinks that you might be over the income limit, but you are not going to 100%
know until the year is over. Number one, you can
either wait until January of the following year,
like we talked about in one of the previous mistakes that
I mentioned, or number two, you can just contribute the
money to a traditional IRA, then do a backdoor Roth within
the year to get the money into the account so it can be invested.

That way, if you are
over the income limit, you've already done the backdoor Roth. If you're under the income limit, no big deal 'cause you had to pay taxes on that money that was going
into the Roth IRA anyways. A question I get a lot is
whether or not you can contribute to a Roth IRA on different brokerages. The simple answer is yes. This is how it would play out. You can contribute up to the max for one year
on, say, M1 Finance.

Then you can decide to contribute up to the max on fidelity the next year. Then you can contribute up to the max on Vanguard the following year. So by the end of that third year, you would have three different Roth IRAs with three different brokerages, and there is no problem with that. You can take it one step further. If you decide, hey, out of these three, I actually like M1 finance
better than the other two, you can convert the
Roth IRAs with Fidelity and Vanguard into your
M1 Finance Roth IRA.

You can also split up your contribution for the same year among
different brokerages. So if for this year you want
to say contribute $4,000 to an M1 Finance Roth IRA and the remaining $2,500
into a Fidelity Roth IRA, then you can do that without any problems. The only thing you
cannot do is try to game the system by saying contributing $6500 into an M1 Finance Roth IRA and $6500 into a Roth IRA with another brokerage. You cannot exceed the maximum
amount allowed per year across all of your Roth IRAs on all of your brokerage accounts. Technically, you could do that since all of the brokerages aren't talking
to each other to keep track of what you are contributing, so you have to self-manage this. I would highly, highly recommend making sure
that you do not do this, whether it's on purpose or on accident. I don't know what the penalty is for this, but all I know is that you do
not want to get caught trying to defraud the government
in any way, shape, or form.

Long-term investing is the name
of the game with a Roth IRA. This money is for when
you are in retirement, so make sure to take that into account when investing this money. No gambling it on stocks
that random YouTubers are promoting. I think the two or three fund portfolio is perfect for your Roth IRA, which you can learn more about
in these videos to your left. There's a bunch of free stocks and resources down in
the description below to help with all of your personal finance and investing needs. I'll see you in the next one, friends, go..

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401K to Gold IRA Rollover

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Retirement Planning FACTORS | Age and Income

what to look for when selecting the right 
retirement plan so age is a big factor when   it comes to deciding which plan is right for you 
if you're offered a pension that's fantastic not   many companies do offer those nowadays however 
if you have the benefit of getting one then yes   take it but I also think you should also have a 
retirement plan in addition to your pension just   to diversify your savings another situation to 
consider is your financial situation so someone   with a higher income level is most likely going 
to want to prefer choosing their own retirement   plan because then they're going to be able to 
not only write off those contributions but also   distribute it later in life so it maximizes their 
potential to not incur penalties or other taxable   income kind of situations essentially the more 
money you make you're looking for more write-offs   you're looking to claim less you're looking to 
you know have security but you got to be a little   more deaf and clever in how you're taking your 
distributions so to not trigger taxable events

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Retirement Planning Home

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THE WEALTH OF NATIONS | PART 2 (BY ADAM SMITH)

As promised, here is the second part of The Wealth of Nations, one of the most influential books ever written about economics If you haven't watched the first part yet I'd advise you to do that now, as some of the takeaways here build on those from the previous part Let's continue where we left last time … Takeaway number 6: Accumulation and employment of capital What's the similarity between Michael and a country like the US, China or Sweden? It is that they get wealthy in the same way Allow me to introduce The Swedish Investor's "Stairway to Money" All copyrighted and original content, of course Each different step represents a category that an individual can spend money on To become wealthy a person wants to spend money on the higher steps and not the lower ones At the bottom, we have services meant for consumption These are the worst things that you can spend your money on, as you'll consume them instantly Vacations, dinners and video on demand all belong to this category The next worst thing to direct your money towards is products meant for consumption Products depreciating value from the time of purchase, but at least they're not as bad as services because you will still be able to sell them at a later stage, even though it may only be at a fraction of their original value Cars, clothes and phones belong to this category Then we have products that do not depreciate in value and that often keep their value through inflation Important entries in this category are collectibles and a house to live in And at the top, we have investments This is a very broad category indeed, and anything which is expected to generate more cash in the future than the outlay of money is today, plus a reasonable return, belongs here Therefore – starting a business, educating yourself, investing in the stock market, or renting out properties all belong here It's the same with countries If a country buys services from another country, money flows right out from it without being replaced with something else that is valuable If a country buys products from another country, at least some of the value is still preserved as products can be sold again at a later stage It is similar with a third step in our Stairway to Money A country gets rich by increasing its own productivity by starting businesses there, by educating its people so that their skill and dexterity increases, or by buying productive assets from other countries BUT …

… and this is unimportant but Neither people nor nations should be afraid of having expenses just because of this Both people and nations, if they want to acquire wealth, should focus on what they are naturally good at and then outsource the rest This is what we shall focus on next Takeaway number 7: Globalization – the shortcut to increased wealth Here we have. Michael Lewis, a 32 years old engineer He's working at a job where he's paid a base monthly salary, but he's also compensated for overtime For overtime hours, he nets approximately $30 per hour Given this, here comes a few questions for you: Should michael cook his own food? Should michael clean his own house? And, sorry now i'm getting a bit silly just to prove a point here, should michael build his own phone instead of buying one from apple? From a wealth standpoint the answer is no to all of these questions It makes sense for Michael to do what he is best at, earning money from that and then hire other people to do what they are best at for everything else that he demands Perhaps Michael can cook his own food, but it takes him about an hour to prep a single meal, which means that he does so at a cost of $30, because he could have spent that time working as an engineer Therefore, it doesn't make sense for him to do it as he can just buy a meal outside for $15 Similarly, he can clean his own house, but it takes him 2 hours to do So that's $60 for Michael, while he can hire someone to do it for $40 And as an engineer, he is capable of building his own phone, but it might take him something like 200 hours plus $200 in materials That's a $6,200 phone! Why not just go buy the latest IPhone for $1,000? If it doesn't make sense to do something at 6 times the price it doesn't make sense to do so at 2 times the price, and probably not at 1.5 times the price either It is the same with nations For nations to increase their wealth, they should be focusing on the things that they are really good at, and then hire other nations to do what they are best at For example ..

The US is obviously a leader in many different businesses, but among others, in the fast food and entertainment industry China is incredible at producing most products at very low prices And in Sweden, we are quite good at producing furniture … … sorry, I mean at making everyone else produce furniture for themselves, of course Now, should Sweden try to produce the same products that China can produce much cheaper? No. Should China compete head-to-head with Hollywood? Probably not. Should the US have everyone produce furniture for themselves? Definitely not! All these countries can be more productive, and in that increase their wealth, by simply doing what they are best at, and then trade goods with each other Also, to make another comparison between individuals and countries in their quest for wealth: Both of them will earn more by having rich neighbors or acquaintances People know that if they want to be rich, they should move where other people are rich And probably even more importantly – they should acquire rich friends It's the same with nations A country should want their neighbors and trading partners to be wealthy, because eventually that wealth will spill over to them, too Just look at this map But we've been getting this backwards for centuries now In the 18th century, Great Britain and France, probably the two wealthiest countries in Europe at that time, did everything they could to make business miserable for each other instead of cooperating They even went to war with each other! Today, let's hope that the two most important economies of our time, the US and China, don't make that same mistake Takeaway number 8: Why free trade is superior, and why governments shouldn't interfere As we talked about in the previous video – in a capitalistic society, money will naturally flow where the returns are higher and disappear from where their returns are lower In a society where the government does not interfere, two rules will guide capital – Capital is naturally employed where it can produce the greatest returns This is actually a good thing, because businesses like these are more sustainable than anything else They will employ people where there is demand and a real competitive advantage – Capital is also naturally employed in the home market, as this comes with less risk This is also good, because it creates working opportunities in the own country For these two reasons, it is totally unproductive when governments interfere with the market Just as an imaginary example: Say that we, in Sweden, would do something as silly as setting up a ban on movies created in Hollywood What would happen when such a ban is introduced? Excluding potential retaliation, it will yield higher profits for the film industry in Sweden than what would naturally be the case Therefore, more capital will be incentivized to flow to this industry But this business still isn't competitive on a global scale.

Everywhere else than in Sweden, people will still watch movies from Hollywood! Moreover – the capital in Sweden which goes towards the creation of film is capital that could have been directed towards something where Sweden is competitive on a global scale, like the previously mentioned furniture Generally, politicians must have a small dose of God Complex if they think that they are smarter than the aggregated thinking of the market when it comes to capital allocation decisions in businesses There are two examples when it might be necessary to introduce duties, bans and tariffs though: – For goods that are important for the defense or survival of the country – And when a tax is imposed even on such domestically produced goods You don't want to shift the favor to the foreign goods, at the very least Apart from that, governments should probably stay away from using duties, bans and tariffs on foreign goods They should not incentivize certain industries or disincentivize others, because the market is likely to do this very well on its own, thanks to the before mention two There are a few areas where a government is absolutely necessary for the wealth of a nation though, and that is what we shall cover in the next takeaway Takeaway number 9: What is the purpose of a government? According to Adam Smith, there are some tasks in a society that the market and private people have little or no interest in solving The four that Smith discusses are: – The defense of a country – The justice system – Some type of infrastructure – And basic education The defense of a country is absolutely necessary for its wealth to increase Interestingly enough, a country is more and more likely to be invaded the richer it is Or so it was in the old days at least ..

Consider the raids of Genghis Khan and his Mongolian savages of the much wealthiest cities of China Or how the vikings invaded many much more established societies in Europe The savages actually had the advantage at this time, as they were much more skilled fighters But that all changed with the invention of the firearms Firearms were expensive to make, and no matter how skilled an army of spears and bows were, it couldn't beat one equipped with firearms And so, the odds changed in the favor of the wealthy nations, who could afford these supreme weapons Anyways … A nation must be able to defend itself to sustain its wealth And as this benefits everyone in a society, it does make sense that a government has the responsibility of this task Justice, is similarly an expense that benefits everyone in a society In the old days, justice was often exercised by those in power, but one can easily understand how such a system can be very corrupt It is essential that justice and power are separated.

Otherwise – who should bring justice to those in command? Similarly, a justice system that is based on profits tend to be very corrupt too, so it doesn't lend itself well to the free markets It used to be like this too, everyone that wanted justice had to bring a gift to the judges As you can probably imagine, the person who brought the greatest gift tended to get a little bit more "justice" than everyone else … So to speak. Therefore, the task of bringing justice to its people should be paid for by a government But those that use the justice system often should probably pay extra for that Infrastructure, such as the most important roads and docks used for commerce of a country, is something that benefits everyone too But it doesn't invite the same conflict of interest as the justice system does, and should thereby often be held privately Infrastructure should be financed with revenue from the commerce which can be carried by means of it. Because in this way, money will much more seldom be wasted on infrastructure projects Some infrastructure projects can be important without being profitable, but in that case they should often come with a local tax, not a national one Without some type of basic education being free and probably also mandatory, some of the country's inhabitants, those that are born into poverty, will most likely never learn how to read write or count Such inhabitants are unlikely to increase the productivity of a nation Therefore, we want to avoid that this happens A benefit such as learning to read, write and count benefits everyone and it should be one of the purposes of the government of making sure that this is done Takeaway number 10: How should a government be financed? So ..

With defense, justice, infrastructure and education, a publicly financed government seems to be the most fair and logical solution But there are many different options of financing something, and some are definitely better than others Here are 4 principles for creating good taxes: Equality Each person should contribute in proportion to his or her abilities and in proportion to the revenue which he earns under the protection of the state It is difficult to make sure that the wages, profits and rents (the three sources of income which we discussed in the previous video) are all taxed equally, but they should at the very least be taxed equally individually Certainty Time, quantity and manner of payment must always be clear This is probably the most important principle.

A little bit of uncertainty is worse than a great deal of inequality Uncertainty leads to the potential corruption of the tax gatherer Convenience Taxes should be due when the contributor is most likely to be able to pay The consumer pays whenever he consumes a service or product, and the wage earner should pay taxes as soon as he gets the wage, not at some other time when he might already have spent it all Efficiency A tax may never be more burdensome to the people than it is beneficial to the government For instance … – As few people as possible should be required for gathering the tax – A tax should never discourage industry – And the degree of visits and examinations of the people shouldn't make them feel oppressed With these 4 principles in mind, i'd like to ask you a question: Do you think that it is a good idea for a country to have a wealth tax? In other words, a tax which is in proportion to the total assets of private people. Please comment with your answer down below! Alright, that's it for Adam Smith's Wealth of Nations Here are two unusual recommendations for further watching from other channels: You can watch me doing the Navy Seal's screening test for eight hours, if you want to watch me in a lot of physical pain Or, you could watch this summary of 79 of my book summaries Cheers guys!

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Retire Wealthy Home

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The $65,000 Roth IRA Mistake To Avoid

– I've seen too many of
you making some mistakes when it comes to investing
in your Roth IRA. One of them could cost you
$65,000 and the other one could cost you almost $500,000. You guys are seriously going
to make my beard turn more gray than it already is if
you don't knock it off. So let me show you what to watch out for, that way, you don't lose more money than you have to and
I can save a few bucks on hair dye for a couple more years. A Roth IRA is a self-directed
retirement account where you can contribute after
tax dollars to be invested. Since the money going in is taxed, the growth of your investments are not taxed and the money withdrawal from the account are never taxed either, as long as you don't try to pull out some of the money before the age of 59.5.

There is no such thing
as a joint Roth IRA. So if you and your spouse
want to contribute to one, then you'll have to do it individually, hence the name Individual
Retirement Account. If you both have enough
earned income separately, then you can each invest up to the $6500 limit for the year. If one of you works and the other doesn't, but you file a joint tax return, then the person working can, of course, contribute to a Roth IRA and
your spouse can contribute to a Spousal Roth IRA as well.

Remember, these accounts are
owned by the individual person and on paper, not co-owned by both people. I want to try to encourage you to max out your Roth IRA every single year, if possible, because if you
don't do it for that year, then in the future you
cannot go back and contribute for a previous year once that time limit has passed. A Roth IRA is one of those accounts where I would bend over backwards to make sure that I can
put in the full amount allowed every single year. In my order of operations for
what to do with your money, I have maxing out a Roth
IRA right after investing up to your employer match and HSA. That is how important
this type of account is. The good news with this
is that you actually have a timeframe of 16
months to contribute for each calendar year. So if we are in 2023
right now, then you have from January 1st, 2023, up until
when taxes need to be filed for that year to contribute,
which in this case, would be April 15th, 2024.

That's how it is every single year, so ignore the actual dates in my example and pay more attention to the timeframes since the date taxes are due
will change by a few days from year to year. Most brokerages will ask
you which year you want to contribute to. For example, I personally
invest using M1 Finance, which you can check out down
in the description below, and also get a deposit bonus as well. If I contributed to my Roth
IRA through them right now, then they would ask if I wanted the money to go towards 2022 or 2023, since at the time of recording this, we haven't hit the date
where taxes are due. This is great because it
gives you some extra time beyond the current year to
contribute Roth IRA money for that year. Before I tell you the next mistake that I see way too many people making, please help support my dog Molly by hitting that thumbs up
button and sharing this video with anyone you think it would help.

Once you deposit money into your Roth IRA, there's one more extremely important step you need to do that I see a ton of people missing, and that is
actually investing the money. I can't tell you how
many people I've talked to over the years who just put money into the account assuming
it would automatically grow, or knowing that they
needed to invest the money, but just forgetting to do
it because life happens, and things naturally slip out of our mind, only to check their account
balance years later, realizing that it hasn't grown in value because they didn't invest the money. Stop the nonsense here and
just set up auto investing within your investment account, and if you're waiting because you think that you can time the market
to buy in at a lower price, you can't, because it's
nearly impossible to do, so just to get the money
invested right now.

If you know how you want to
invest the money, then great. If you don't, then I personally
like the two fund portfolio for people who are in
the accumulation phase of investing and in the
three fund portfolio for when you're closer to
retirement or in retirement. I'll have a link to a
playlist then I made just for you where I teach you
about both of those portfolios down in the description below
and above my head as well.

When you contribute to a Roth IRA, all of your money is not
locked up until 59.5. You can withdraw the
contributions that you've made before that age without paying a penalty, but you cannot withdraw any of
the gains within the account. For example, if you've contributed $6500 and the account has grown to $10,000, then you can withdraw
the $6500 contribution, but you cannot touch the $3500 gain without paying a penalty until 59.5. I've gotta interject for a second to give my personal opinion on this. While withdrawing money
penalty-free is an option, I want to encourage you not to do this.

To be brutally honest, I think that doing this
is one of the dumbest, most irresponsible, short-sighted
things that you can do. Withdrawing just $6500
worth of contributions would cost you $65,000 in
future investment growth. So when any money is
taken out of this account before retirement, think
about how it's actually going to cost you 7,800 Chipotle burritos, or 65 new Apple iPhones, or anything else that you would buy for that amount of money. And yes, I am fully aware
that you can do a penalty-free early withdrawal up to
$10,000 before the age of 59.5 for a first time home purchase. But this is just as stupid as withdrawing your contributions early
because that $10,000 is costing you over $100,000
in future investment growth when you pull that money out. Average annual home appreciation over the past 12 years has been 6.11%, and the US stock market
has returned 12.27%.

Leave your money in the freaking Roth IRA and go earn that $10,000 that
you need to buy the home. Responsible investing takes time, like five or 10-plus years, and this money needs time to grow. The second you withdraw
any of your contributions, you are cutting down that tree before it even has a chance to grow fruit. Once you withdraw
contributions from the past, you cannot replace that
money in the future. I get that emergencies happen in life, so that's why you need
to have money set aside in an emergency fund to
pay for those things.

Do not, under 99.999% of circumstances, use your Roth IRA money for anything other than when you retire. One thing I see way too many people doing is investing in a
taxable brokerage account before they have their Roth
IRA maxed out for the year. This is a huge mistake from a tax savings
perspective for some of you because of how each account is taxed. With a Roth IRA, you invest with money
that's already been taxed, so the money can grow tax-free
and be withdrawn tax-free.

With a taxable brokerage
account, you are paying taxes for the ongoing dividend
distributions every single year. Then you have to pay capital gains tax when you go to withdraw the money. Since the money within
a Roth IRA will grow and can be withdrawn tax-free, realistically, you want
this account to get as large as possible, but not at the expense of
your personal risk tolerance. You should not take on
additional levels of risk by investing in more
risky, unprofitable stocks that random YouTubers have been pumping over the past few years or actively manage funds to
try to achieve higher returns.

99% of people, including
myself, cannot handle investing in something with a
high risk and potential, potential, high return. So don't even bother. The money in this account
is for retirement, so is it really worth it to risk that 60-year-old's financial wellbeing because you decided to gamble with their money right now? I doubt it. Some of you might be over
the income limit to be able to contribute to a Roth IRA, or some of you will be at
that point in the future as your income grows. You can still contribute to a Roth IRA to take advantage of the tax-free growth by doing a backdoor Roth.

To simply explain the process,
all you do is contribute to a traditional IRA. Do not invest the money yet. Then contact your brokerage
to have them convert the money to a Roth IRA. Now, I have done it with M1 Finance before and it was extremely easy. It only took I think two or three days for the money to get into my Roth IRA. Only do this if it makes sense based on your current tax rates
and future financial plans. There's two things that you can do. if you are someone who thinks that you might be over the income limit, but you are not going to 100%
know until the year is over. Number one, you can
either wait until January of the following year,
like we talked about in one of the previous mistakes that
I mentioned, or number two, you can just contribute the
money to a traditional IRA, then do a backdoor Roth within
the year to get the money into the account so it can be invested.

That way, if you are
over the income limit, you've already done the backdoor Roth. If you're under the income limit, no big deal 'cause you had to pay taxes on that money that was going
into the Roth IRA anyways. A question I get a lot is
whether or not you can contribute to a Roth IRA on different brokerages. The simple answer is yes. This is how it would play out. You can contribute up to the max for one year
on, say, M1 Finance. Then you can decide to contribute up to the max on fidelity the next year. Then you can contribute up to the max on Vanguard the following year. So by the end of that third year, you would have three different Roth IRAs with three different brokerages, and there is no problem with that.

You can take it one step further. If you decide, hey, out of these three, I actually like M1 finance
better than the other two, you can convert the
Roth IRAs with Fidelity and Vanguard into your
M1 Finance Roth IRA. You can also split up your contribution for the same year among
different brokerages. So if for this year you want
to say contribute $4,000 to an M1 Finance Roth IRA and the remaining $2,500
into a Fidelity Roth IRA, then you can do that without any problems.

The only thing you
cannot do is try to game the system by saying contributing $6500 into an M1 Finance Roth IRA and $6500 into a Roth IRA with another brokerage. You cannot exceed the maximum
amount allowed per year across all of your Roth IRAs on all of your brokerage accounts. Technically, you could do that since all of the brokerages aren't talking
to each other to keep track of what you are contributing, so you have to self-manage this.

I would highly, highly recommend making sure
that you do not do this, whether it's on purpose or on accident. I don't know what the penalty is for this, but all I know is that you do
not want to get caught trying to defraud the government
in any way, shape, or form. Long-term investing is the name
of the game with a Roth IRA. This money is for when
you are in retirement, so make sure to take that into account when investing this money. No gambling it on stocks
that random YouTubers are promoting. I think the two or three fund portfolio is perfect for your Roth IRA, which you can learn more about
in these videos to your left.

There's a bunch of free stocks and resources down in
the description below to help with all of your personal finance and investing needs. I'll see you in the next one, friends, go..

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Finance Cheat Code Only The Wealth Know 🤫 #shorts

this is a financial cheat code that the wealthy are not sharing with you and if you want to become rich you have to re-watch this video let's say you take out a loan which you don't have to pay any taxes on it the rich would use this debt to go and buy assets that appreciate your value they then use appreciated assets value as it grows to borrow even more money from the asset which is also tax-free and have the assets cash flow okay to the impassive income subscribe for more financial breakdowns.

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Our $3.7 Million Fat FIRE Strategy | New Investment Strategy to Retire Early by 45

In september 2021, i published a video about our fat fire strategy in the amount of 2 8 million dollars and that video is still by far the best performing video, and it was like the 15th video i’ve ever made for this channel with less than 150 subscribers, our fat fire strategy, became the core of my youtube channel here at fireside chat and that video had a complete breakdown of our fire expenses like housing, health care and discretionary like travel, entertainment and fine dining. A lot has changed since that video was published in september 2021. We’re seeing a high inflation rate, like we’ve, never seen before, unless you’re a baby boomer who experienced high inflation in the 70s, the stock market, like the s p 500. Dow and nasdaq is down 20 25 or even 30 since the beginning of 2022. I also had a significant life event and i recently got married to my beautiful wife, whom i dated for over four years, and we’re still fine tuning our fat fire strategy to make sure that we can retire early together for uh by age 45. After doing several fat fire calculations based on our income, expenses, inflation and investment, we’re going to have to change our fat fire number from 2 8 million dollars to about 3 7 million dollars, and this is the most conservative conservative fat fire number. We came up with and we would also like to live in several locations and not just stay in one place during our retirement, which will increase our baseline expenses. If you’re brand new to my channel, my name is sai and welcome. So in this video. I’m gon na go over how we’re investing to achieve fat fire of 3 7 million dollars and how we’re, prioritizing our savings and investment based on our future expenses, so we can retire early from the 95 workforce. This is a juicy video and i hope you get a lot out of it. Also don’t forget to check out my grammarly affiliate link in the description below so the first thing we had to figure out was our fat fire number. Now we have several fire strategies like lean fire, which is for people who want to live a minimalistic lifestyle coast fire, which is for people who want to coast into normal retirement and barista fire, which is for people who want to take a part time job to Pay for health care expenses, while using their nest, eggs to pay for their retirement lifestyle, be sure to check out those videos, and i will put those links in the description below but fat. Fire is the lifestyle we want where we can truly enjoy our lives by traveling, the world and living in several locations. We don’t know what those countries are just yet, but we plan to travel overseas at least once or twice a year to do some research. So the first thing we have to do was to figure out our annual expenses. Originally, we would have been happy with just 100 000 a year in passive income using the 4 withdrawal rate. So what that means is that, with a 2 5 million dollar investment portfolio, we would withdraw 4 of that portfolio every year in the amount of one hundred thousand dollars. We would also have uh three hundred thousand dollars or ten percent of our total portfolio in cash or cds on the sideline. In case we experience a bear market, like we’re, seeing now in 2022, so we wouldn’t have to sell our stocks at a loss from our investment portfolio. Our baseline expenses will increase based on inflation, but that doesn’t mean every single expense. In our household is going to dramatically increase our mortgage payments, for example, will remain the same because they would be at a 30 year fixed mortgage rate, and another possibility is that we pay off our home completely if the mortgage rate stays above six percent for the Next 10 years, which would suck, in my opinion and, however, paying six six percent interest for our primary residence, wouldn’t be worth it anymore. If the stock market performs seven percent on average annually, even if the market performs 10 annually, the margin isn’t wide enough for us to justify to keep making mortgage payments. Then let me know in the comment section down below if you have a different, take or different approach on our strategy, i would estimate our baseline expenses between housing utilities, transportation, groceries and healthcare expenses to be anywhere around 50 and 75 000 a year based on a Three percent annual inflation rate and the only wild card we have is healthcare, and i can only imagine our healthcare expenses to continue to increase over the coming years and especially if we decide to retire in the us. We’re also going to have several properties in different states or different countries, and that will increase our basic housing expenses with our fat fire number at 3, 7 million dollars, the 4 withdrawal rate will be 148 000 a year. The 3 withdrawal rate will be around 111 000 a year if we end up not spending too much money due to a bear market or other short term catalysts. After the baseline expenses, we could spend anywhere between 36 and 61 000 a year on travel and entertainment. Keep in mind that we’re going to recalculate our fire number every year, based on our future expenses and inflation, make sure to watch the entire video, and i will show you our passive income sources and the investment strategy by the way. If you need help creating your own fire strategy, you can schedule a free one on one 20 minute financial coaching session by visiting fischer com, coaching for our fat fire strategy. We’re going to prioritize our savings and investments in this order. Cash for annual expenses like taxes – and we want to have at least 10 to 15 percent of our net worth in liquid assets. So if our net worth is a million dollars, then we want to have at least one hundred thousand dollars in cash or cash equivalent assets. The second priority is our retirement accounts like tsp pensions, iras and hsas, and i will talk more about that in a little bit. The third priority is our non retirement assets like the taxable brokerage accounts for our early retirement between the ages of 45 and 60. The fourth priority is our travel fund, entertainment and our daughter’s college fund. I also have a fire checklist that we follow and you can download for free by visiting fightcech com contact. We have our emergency fund in a completely separate savings, account that we do not touch unless it’s for emergency medical expenses or anything else that’s unexpected. Our rule is that we only use it if it’s an unexpected emergency, and i strongly encourage you to check out this video i made about the emergency fund and i will link that video in the description below just keep in mind that the differences between A rainy day fund and an emergency fund is that in a rainy day fund you need to cash right away for a blown tire, and an emergency fund is to cover your living expenses. While you’re looking for a new source of income and since we’re debt free and we have a fully funded emergency fund, we maxed out our tsp iras and hsas between my wife and i we contribute up to 50 000 a year, including our Employer matches and she has the nevada state pension fund, which is a lot different than the traditional retirement accounts like 401k or tsp. She contributes 15 of her income and her employer makes a 100 match to her personal contribution, and i can contribute up to 20 500 and another eight hundred dollars from my employer match to be exact. We contribute a total of forty, nine thousand six hundred and thirty one dollars, and we expect the contribution limits to increase over the years. We also prioritize our roth iras and since we exceed our roth ira income limits, we have to do what’s called a backdoor roth ira, and i will link that video in the description below we each contribute six thousand dollars to our traditional iras as non Deductible contributions and then we convert the six thousand dollars to our roth iras. That’s a total of twelve thousand dollars between the two of us and just keep in mind that the rules for roth iras are different like contributions, conversions and earnings. And i strongly encourage you to watch the video about the five year conversion ladder, so you have a better understanding of the roth ira conversion rules. We don’t plan to touch our roth iras until we’re in our 60s or 70s, because we want our roth ira race to grow tax free as much as possible and as long as possible. We expect to have about four million dollars total in our roth ira race. By the time we turn 60 Hsa is another investment account that we own through our employers, and i understand that not everyone is eligible to contribute to the hsa, especially if you have tricare hsa stands for health savings account and it’s completely different from the Healthcare fsa, which stands for flexible savings account and the hsa comes with triple tax advantages, so we can contribute to it in pre tax dollars, which lowers our taxable income. We can invest what we put in the hsa into an index fund like the s p, 500 index fund and the interest and earnings will grow tax free. We can also withdraw from our hsa tax free as long as as we use it for medical expenses and we keep every receipt from medical, dental and vision expenses we paid in cash, so we can get reimbursed for those expenses during our early retirement. When we turn 65, we can withdraw from our hsa for non medical expenses and only pay federal income taxes for the withdrawals. Since we file our taxes jointly, we contribute up to 7 300 a year for our family hsa. If we don’t make any withdrawals during our early retirement, we should have about two hundred and fifty thousand dollars by the time we turn 50 years old by age 65. We should have 1 2 million dollars in our hsa, with a 10 average annual rate of return between tsp state pension funds, uh roth iras and hsas. We’re contributing a total of 68 931 dollars just for the year 2022 and we’re expecting the contribution limits to increase, at least for the next few years, due to high inflation hsa’s contribution limits for 2023 is already increased from seventy. Three hundred dollars to seventy seven hundred dollars. I expect the contribution limits for iras to increase from six thousand dollars to possibly seven thousand dollars and 401k or tsp from 20 500 to possibly 21 500. We also contribute to our non retirement. Investment accounts, like the taxable brokerage accounts. We have one brokerage account that only invests in aggressive and high growth stocks. We have another brokerage account that only invests in income based stocks that pay quarterly dividends to their shareholders. We’re hoping to consistently invest 50 000. A year into these taxable brokerage accounts so that by the time we retire early in 2032, we would have at least one million dollars in our dividend: stock portfolio and another million dollars in our growth stock portfolio. If we maintain a four percent annual dividend yield in one of those accounts, we should make forty thousand dollars a year just in dividend income and keep in mind that the tax rate for dividends is also different from the federal income tax. We expect to have minimal earned income, and that puts us in that zero percent capital gains tax category based on my calculation, and if we make less than eighty four thousand dollars a year in earned income, our dividend tax rate should remain zero percent. As long as congress, doesn’t mess up mess up our tax rates, our goal is to minimize our taxes as much as possible during our early retirement. So now let’s go back to my fire checklist for a minute and we’re already saving over 60 of our income towards our retirement and non retirement accounts and whatever we have remaining usually goes to our travel and entertainment fund. And we call that our sinking funds – we’re, currently saving anywhere between 10 and 15 000 a year into our travel fund, and if we decide to travel more or our income continues to increase, then we’ll bump it up to our uh, maybe 20, To 30 000 a year, we’re also contributing to our daughter,’s. 529. It it’s projected to cover a significant amount of expenses for college tuitions. We’re not too worried about her college tuition because i already transferred my post 911 gi bill over to her and several years ago, and even if my daughter ends up not using the 529 college fund, i can change the beneficiary to my future grandkids or Even to myself, if i want to by the way you can get our free fire resources, including these spreadsheets, by visiting fischer com contact, you can also check out the fight such as shop, and i have all of my stuff on my bookshelf. At firesidechat com shopping. Now let’s talk about our income sources during our early retirement, if 2022 taught us anything and that is to diversify our income sources, so we don’t have all of our money in the stock market with 3 7 million dollars our net worth should Be anywhere between six and nine million dollars, one of our main sources of income is our dividend, and i’m gon na be very conservative here and say we’ll make anywhere between 40 and 50 000 a year in dividend income just from our taxable Brokerage account at the same time, we’re going to convert what we have in our traditional retirement accounts to our roth iras and that will trigger a taxable event right. However, since our earned income is zero because we will be retired, every 50 000 we convert from our traditional retirement accounts will be taxed at 12, as opposed to 32 percent based on our current income. So for every conversion we make from a traditional to a roth account there’s a five year waiting period before uh before we can withdraw that conversion, completely tax free from our roth ira. So what we’ll need to do is have extra cash to cover expenses during the first five years of conversion to keep our taxes at the lowest rate possible. So when we convert fifty thousand dollars in the year 2032, we will have to wait until january. First, 1st 2037 to make the 50 000 withdrawal completely tax, free and penalty free. We just need to make sure that we have enough cash or other income sources to cover between 2032 and 2037. This is a common fire strategy that early retirees use. So i strongly encourage you to check out this video about the 5 year conversion ladder. We prioritize our retirement accounts over our non retirement accounts because our retirement accounts, like the tsp pension fund, iras and hsas, are like a full back plan. If we decide not to retire early and we want to grow our tax advantage, retirement accounts as much as possible, so we can retire comfortably when we turn 60 years old, completely. Tax free and our primary focus is building our stock market and real estate portfolios. To make sure the money can last during our early retirement between the ages of 45 and 60, consistency and patience are the keys to our financial success. We’ll always invest up to the maximum contribution limits to our tsp ira and hsa and will save at least half of our income to both retirement and non retirement accounts. Whenever we experience a bear market like in 2022, we’re excited to invest in these stocks with a discount and it’s like going to a black friday sale at best buy and what’s different about this bear market is that we’re Dealing with high inflation as well, we increased our fire number because the prices we’re seeing now should be the prices we see five years from now, and i think a lot of these expenses are already priced in and we’re not going to see Much of a decline in the future, but instead there will be a slowdown in the inflation rate in 2023 and possibly into 2024. This is why budgeting is so important for everyone who is pursuing financial independence and retiring early from the 9 to 5 workforce, and if you want to know more about how to invest for your future, be sure to check out these two videos so that’s It i appreciate you watching my video don’t forget to subscribe and i hope to see you in the next video have a good one Music. You

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THE WEALTH OF NATIONS SUMMARY (BY ADAM SMITH)

This was quite inconvenient to state the least Enter: Money Money helps with the exchange of assets that we generate To get back to the first takeaway, one can say that they boost the efficiency of exchange Fairly early, steels were utilized as cash as well as they have at the very least 2 top qualities which make them appropriate for this objective: They generally do not perish and also they can be divided right into lots of parts and after that merged once more Some points have worth in usage-like spears, meat, salt as well as shirts Various other things have worth in exchange-like expenses, coins as well as metals That which has high value in one, usually is rather pointless from the other viewpoint You can ' t utilize a dollar costs for anything.I indicate you can ' t consume it or anything In a similar way, a spear could be quite valuable but it doesn ' t work well for exchange, as we just saw As long as individuals trust that cash can be exchanged for something else that they are in demand of later on, they are pleased to trade their very own produce for

that money It all'boils down to that: Depend On Warren Buffett has stated that it is fairly misleading that'on the behind of every buck bill, it claims “in god we trust” Because, what it should really say is “in The Federal Get we trust” Takeaway number 3: The 3 parts of cost The real price of every little thing is its rate in labor Something that takes even more time, energy or sources to bring up commonly has a higher actual cost Bob didn ' t desire to make that final bargain with “George because he believed that his spear had a greater actual rate “than George ' s * tee shirt However”, there ' s likewise a small cost and also that is the cost as gauged in money Due to the fact that it ' s tough to measure as well as contrast labor, we ' ve come to estimate genuine rates in terms of money instead The rate of every little thing that is created settles itself right into either one or more of the complying with 3 components:-A wage, to pay the'labor that did the work-An earnings, to pay for the funding that was laid out for the work to occur -As well as a rental fee, to pay the owner of the land where the work and or exchange need to take place We all understand that earnings can differ a lot between different occupations Just look at the ordinary income of a McDonald ' s cashier and also compare that to the wage of a neurosurgeon Similarly, earnings vary from sector to market, yet not as much, as well as also they must balance out over time, something that we ' ll obtain to later These are the typical profits measured as return on equity for different sectors during the period 1999 to 2019 As well as the variable that can differ the most is of program leas In New York, for instance, you ' ll have to pay about $ 5,200,000 per acre of land, while in the nation town of Eksjö in Sweden, you ' ll pay only around$20,000. It ' s just that i ' m not all set to pay$70,000 for it yet Hence i ' m a part of the need, however not the effectual demand, that can really bring the item to the market Takeaway number 4: The three elements of cost, component II Allowed ' s have an appearance at these 3 elements independently An employee will certainly always demand a wage so that he can at the very least purchase the necessities of life for himself and his household

This is the bare minimum which also the easiest type of task have to pay, because or else, such workers will certainly discontinue to exist over time In countries where no minimum wages exist, the easiest jobs will tend to be at this degree as well as not higher This is since employees are at a natural negative aspect when trying to haggle just how much of that cost which was stated previously which should go towards their wage They usually exist in abundance contrasted to funding and also land and also in addition, they usually do not have actually much cash saved so they can ' t afford to wait for a much better possibility But incomes can vary a great deal which we shall see later on A business owner is a person who employs his capital to make an earnings within a particular trade or industry The more capital that is used in a particular sector, the greater the competitors there becomes, and also the lower the profits tend to be So it has to be in society as a whole too.If there are no smart methods to use resources any longer returns will be low Over time, even though some firms can hold on for very long, returns on capital will also out throughout markets This is since where returns are high, there will certainly be incentives to relocate resources, as well as where returns are low, there will be rewards to remove capital This recovers a balance of sorts If you desire to know more about which kinds of industries that can stand up to competition the lengthiest, head over to my summary of “Affordable Approach” An owner of land will certainly either try to offer his land for an earnings or offer it out for a rental fee Either method, a person down the line will at some point attempt to offer it out for a rental fee, or make use of the land themselves, and after that it is they who get the rent Rental fees differ A LOT depending on place Some types of land essentially manage no rental fee at all.While those that individuals discover eye-catching-land in cities or beautiful coastline residential properties- gain a great deal of it Something that need to be kept in mind is that rent is rather like a syndicate price After normal earnings have actually been paid as well as the business person have been able to replace his funding with a” suitable revenue, the proprietor of the land will quite much take what ' s left Land is immovable and irreplaceable, and is as a result strange compared to the 2 other types of profits that can be earned Takeaway number 5: Why some tasks pay more than others do So … Profits of industries should average out over time, and more lease is given to the person who holds a residential or commercial property in a city or at a coastline, all right … However why the **** does my neighbor have a higher wage than me, even though I ' m much smarter than him ?! The wages of labor are chosen by supply as well as need, like every little thing else The complying with five elements have a tendency to impact this to boost the incomes of a particular job- The expenditures as well as troubles of learning it-The incongruity of settlements- The trust and duty-The improbability of success; and- The challenge uncleanness and also disagreeableness of the task In the 18th century a blacksmith had to be an apprentice for lots of years before he was allowed to open his very own profession During this time, he earned very little or essentially absolutely nothing at all The higher wage that he got once finished is a compensation for those years, and also the apprenticeship helps in limiting the supply of such employees A mason could only work throughout good weather problems, as well as so his per hour wage had to be made up for those idle hrs A higher obligation suggests that less individuals are fit for that type of work and also as a result salaries are higher Back in the days, attorneys and also doctors had such functions (and they still have by the means )The improbability of success is an additional element that matters The anticipated wage of a task with an extremely high stop working rate is usually even lower than normal jobs, yet the individual who does well normally obtains the salary of those who fall short too( kind of )Individuals looking for gold or prize belonged to that category As well as in the 18th century the most dirty as well as unpleasant job one might possibly get was probably that of the public death squad, as well as the pay was thereafter Today, a hard as well as costly job to obtain would be that of the previously discussed neurosurgeon An inconsistent one might be that of an actual estate broker A job which calls for a whole lot of responsibility.Is that of a pilot Improbability of success is high among exclusive professional athletes and also artists And also the dirtiest and most unpleasant work is possibly that of a hedge fund supervisor! This book is even more than 900 pages long, so I ' m definitely going to make a part 2 on this with 5 added takeaways In component 2 we ' ll cover subjects such as globalization, free profession, as well as the function of a government So you ' ll probably obtain to listen to even more regarding motivations in component 2!

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8 Wealth Rules for 2023 | करोड़पति बनने की शुरुआत!

Look, unfavorable events are bound to happen in one'' s life Any individual can shed the job or can go through decrement in income For such situations, we must keep some Emergency fund as well as how much Emergency Fund we should keep? Purchasing Life Insurance In fact, prior to preparing to invest in any kind of various other investment, we should invest in life and also wellness insurance coverage Talking regarding life insurance, we always choose the term insurance since it'' s Vanilla insurance coverage No financial investment is mixed into it So you get high protection for less cash In reality, we'' ve made thorough videos on the subjects covered till currently I'' ve done an in-depth video clip on Term Insurance and also Wellness Insurance also I'' ll supply the links in the description box listed below So you can view that But we' ' we ' re mainly chatting concerning the thumb regulations here So a concern emerges, Exactly how Much Term Insurance Coverage Should You Purchase? Everyone must take it Lots of people are covered by the corporate If they are functioning in corporate then they obtain some health cover however often that cover isn'' t enough So it'' s important for us to obtain a top-up cover We should get an additional cover in addition to it So exactly how much cover we ought to get for health insurance There are different policies for it Some claim 50% of Yearly Income can be your wellness insurance policy cover Yet 50% of yearly income appears flawed to me Since when you go to a health center then it'' s not dependent on your wage that exactly how much you have to pay Some state 5 lakhs cover is enough, some state 10 lakhs cover is adequate Yet I think healthcare facility expense differs from city to city also So there is a good thumb policy, the price of heart surgery in your city= Health and wellness Insurance Cover Assume that someone stays in a tier2 or rate 3 city, and also heart surgical procedure is possible there under 3-4 lakhs, after that you can obtain a cover in that range If somebody stays in a city like Delhi or Mumbai, where the price of heart surgical treatment goes up to 7-8 lakhs It'' s feasible that surgery cost would be 3-4 lakhs only However along with it, you'' ve to pay hospitalization charges, medication charges, consultation fees of the doctor we '' ve to make our budget according to it So if the expense is 7-8 lakhs in a city like Delhi, Mumbai So a cover of that quantity is a must So if you wan na obtain or compare Term Insurance policy and Health And Wellness Insurance I'' ll supply the web link in the summary box So these were our 8 essential thumb regulations that will assist you in your daily financial life In reality, we'' ve made thorough video clips on all these topics you can enjoy those as well You'' ll obtain described info on every topic If you suched as the video then please like as well as share it with your good friends as well as household members I'' m sure these thumb rules can help any person in their lives If you place'' t subscribed to this network yet, then please subscribe from listed below as well as please press the bell symbol to get notifications of the latest finance videos So we'' ll satisfy in the next helpful video Till then keep finding out, keep earning, as well as remain happy as constantly

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Former Wall Street Investor Explains How to Build Wealth like the 1%

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

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Top 5 Wealth Killers Only 1% of Rich People Know

Virtually 6 in 10 Americans don'' t have. sufficient cost savings to cover a $500 or $1,000 unplanned expense. That’s definitely.
horrible because if something fails, you will certainly need to take unneeded lendings.
or, god forbid, pay a bank card passion. They might rise 20 and even 30 percent..
You have to be a moron to pay that much rate of interest. What else can you.
do if you have nothing else option.
Even those who actually.
conserve some cash apparently said they don'' t have much in their financial savings account. Certainly, cost savings went considerably higher during the pandemic age because we were compelled.
to remain at home and also collect stimulation checks yet that’s currently hunting us down with the greatest.
Regardless of the fed'' s best efforts to keep increasing prices, that hasn'' t helped.
never ever recognize that considering that we don'' t have a machine that can take us to a different truth. When virtually 60 percent of the population says that they have less than a thousand.
dollars in their interest-bearing account, you recognize that we have a problem because a thousand.
bucks is probably not enough to cover the rent. What occurs if you get ill, enter into an.
mishap, or obtain discharged? What do you do? I obtain, its hard to save when.
we are bordered by so many things pushing us to spend.Even before

the video clip.
begun, you probably saw an ad that called you to visit their website and also spend some cash. Let me make clear something, spending cash isn'' t bad. There is absolutely nothing wrong with getting things you.
requirement or want. At the end of the day, what’s the point of generating income at the end of the day. On.
top of that, spending is what drives the economic situation forward. Without enough costs, we will certainly have.
depreciation that will reduce economic growth. What I see often takes place is that People typically.
grumble that they can'' t conserve due to the fact that they need to cover their standard costs yet wind up acquiring.
5-dollar coffee as well as avocado salute every early morning. Once again, there is absolutely nothing poor keeping that, as long.
as you are saving an excellent dimension of your paycheck.I don’t truly support the suggestion of saving every. penny feasible since life isn ' t practically conserving money. It'' s concerning experiences. And also component. of that is having a good time with friends and spending cash. If you are at the start.
of your journey, you can'' t manage to spend every cent you gain. You need to construct that.
funding that will certainly deal with your part of you. The issue is that there are few riches.
awesomes that drain your budget plan one of the most. If you can get rid of them, you will certainly be able.
to conserve a ton of money as well as develop that lot of money. If you prepare, give this video a thumbs.
up, as well as let'' s start with the initial one. Vehicle. If you have actually ever possessed an auto, you most likely recognize just how expensive it is to.
have a car.In truth, a lot of people that drive don'' t recognize exactly just how much their cars and truck costs. The average monthly payment on a brand-new car was $575 in 2020. That'' s much from the real cost of.
possessing a cars and truck. Which’s back in 2020. It’s far more than that given that there is a lack of.
chips and also high rising cost of living. Which’s simply your regular monthly repayments without taking into account.
insurance, gas, and particularly upkeep. What I also realized when I got my very first auto was.
how commonly I started to drive.I began driving anywhere, also when it wasn ' t essential. Gas is not inexpensive, specifically now, and also being embeded traffic daily can.
cost a lot of money. However if you have a household, certainly owning a car makes good sense, specifically.
when public transportation is not a choice. But if you are solitary, for god'' s purpose, save that.
You will thank me later on.
as an example. A fortune! 20 bucks here or 30 bucks there don’t appear like a lot, yet if you include it.
up throughout a month, it will add up. According to the Bureau of Labor Data,.
Americans invest regarding 1 percent of their gross yearly revenue on alcohol.For the average. household, that’s$ 565 a year, $5,650 in one decade, or a whopping $22,600 over a 40-year duration. That.
doesn’t appear much. However do not be tricked by this number. It takes right into account all Americans,.
consisting of those who don’t drink and those who consume once to twice a year. If you just.
take into account those who consume alcohol routinely, that number would certainly be much greater. A couple of hundred.
bucks a month is normal for regular drinkers. The same goes for cigarette smoking, gaming, and various other bad.
routines. The ordinary price of a pack of cigarettes is $6.28, which means a pack-a-day routine sets.
you back $188 per month or $2,292 per year. These numbers could not tighten you, however if.
you also count the opportunity price, you will possibly do away with these behaviors right away. If you toss that 2292 bucks yearly right into an index fund with a 7 percent return,.
with the power of compound rate of interest, you can expect to have $365,883 in 40 years. Add to that the medical expenses that you will certainly get as a result of your bad habit, as well as.
you might as well declare bankruptcy. 3.

Spending money on impressing individuals Back when I remained in institution, my self-confidence was.
really reduced since I was doing badly in college, yet as social animals, we want to be appreciated.
by the people around us. We want to be valued because we have so lots of insecurities..
As well as often, when we put on'' t understand how to fix these insecurities, so we spend cash.
to show everybody that we are comparable to them. Why do you think people acquire.
Rolex watches. Allow'' s be honest, a Rolex watch is actually solving one issue,.
which is informing the moment, but even Rolex holders typically utilize their phones to have a look at the.
time.But people still spend loads of hundreds of bucks on them due to the fact that they have effectively.
branded themselves as a deluxe brand that is used by well-known and also effective individuals. We buy them.
to send out a message to people that – look men, I make a great deal of money. I can afford a Rolex. Most.
individuals acquire that type of watch to impress people, which is not a problem if you can quickly pay for.
that. However if you can barely afford a Mercedes as well as still decide to get it, you have just.
tossed yourself into a massive financial trouble. 4. Paying high-interest prices. Bank card are great. It'' s possibly the best. means to build your credit report and also preserve it. It is extremely essential due to the fact that it will.
aid you to obtain finances and lower interest. Here is when things obtain awful. When you use.
a credit score card to pay for things you can not afford, what winds up happening is that, you.
will not be able to cover your credit scores card debt at the end of the month.
They might go as high as 20 or 30 percent. 41 percent of credit rating card customers reported that
they are failing to pay their. 5.
There will. constantly be a woman around you who will attract you, as well as if you can not control yourself, you are.
screwed. The world is filled up with them, but what ' s additionally particular is that your time and.
sources are restricted. Even if you have 100 million bucks, it is very easy to spend that.
cash on a lady in a glance of an eye. What ' s more vital than money is time, the. time you might invest building your'company, side rush, or whatever will certainly produce
. actual wealth.Unless you discover just how to regulate your desire to go after females, you will. never get to financial freedom due to the fact that there will constantly be a lady on whom you.
Thanks for.

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