WEBVTT - Study Hall: Manage Credit & Retirement Planning with Ash Cash 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:20.159 Donald J. 0:00:20.239 --> 0:00:21.200 Trump's leadership. 0:00:21.480 --> 0:00:25.079 I'm Christy nom the United States Secretary of Homeland Security. 0:00:25.440 --> 0:00:29.200 Under President Trump, attempted illegal border crossings are at the 0:00:29.240 --> 0:00:33.080 lowest levels ever recorded, and over one hundred thousand illegal 0:00:33.120 --> 0:00:36.920 aliens have been arrested. If you are here illegally, your 0:00:37.040 --> 0:00:41.160 next you will be fined nearly one thousand dollars a day, imprisoned, 0:00:41.479 --> 0:00:42.160 and deported. 0:00:42.600 --> 0:00:43.800 You will never return. 0:00:44.120 --> 0:00:47.120 But if you register using our CBP home app and 0:00:47.240 --> 0:00:50.120 leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:52.720 Do what's right. Leave now. 0:00:53.040 --> 0:00:57.840 Under President Trump, America's laws, border and families will be protected. 0:00:57.920 --> 0:01:07.720 Sponsored by the United States Department of Homeland Security earners. 0:01:07.720 --> 0:01:10.319 Listen up. When people all around the world first started 0:01:10.360 --> 0:01:13.280 going out protesting this summer, you'd hear it over and over. 0:01:13.880 --> 0:01:17.160 This time is different, But how and who are the 0:01:17.160 --> 0:01:19.600 people trying to make it different and give us new 0:01:19.640 --> 0:01:23.880 podcast Resistance posts, SAYI T. John Thomas Jr. Brings us 0:01:23.920 --> 0:01:26.360 stories from the front lines of the movement for black lives, 0:01:26.560 --> 0:01:29.200 told by the generation fighting for the change. It's a 0:01:29.240 --> 0:01:31.800 show about people refusing to accept things as they are 0:01:32.120 --> 0:01:35.000 and how we can make sure this time really is different. 0:01:35.360 --> 0:01:46.680 Resistance is out now, follow and listen for free on Spotify. 0:01:49.240 --> 0:01:51.240 All right, guys, so a lot of people asks us 0:01:51.320 --> 0:01:53.040 how do they make a podcast? So I'm lett you 0:01:53.120 --> 0:01:57.160 know on a secret on the easiest, most productive way 0:01:57.280 --> 0:01:59.680 to start a podcast and get it up and running. 0:01:59.720 --> 0:02:03.240 And now is the app called Anchor is free. They 0:02:03.280 --> 0:02:05.520 have all kinds of cool creation tools that allow you 0:02:05.560 --> 0:02:08.040 to record and edit your podcast right from your phone 0:02:08.080 --> 0:02:11.040 a computer. They will distribute your podcast for you to 0:02:11.120 --> 0:02:14.440 all of the major outlets including Spotify, Apple, Google, manymore, 0:02:15.120 --> 0:02:17.440 and you can make money from your podcast with no 0:02:17.600 --> 0:02:20.840 minimum listenership. It's everything you need to make a podcast 0:02:20.880 --> 0:02:24.600 in one simple, easy place. So if you're interested in 0:02:24.639 --> 0:02:28.680 starting a podcast, go download the free Anchor app or 0:02:28.800 --> 0:02:32.040 go to anchor dot fm to get started. 0:02:32.120 --> 0:02:32.680 Let's do it. 0:02:38.120 --> 0:02:44.160 My graduates from my school being forced backdrop drop mic 0:02:44.280 --> 0:02:46.400 drop backdrop drop. 0:02:56.760 --> 0:03:00.680 We're gonna talk about some financial tips day people. Right, 0:03:00.720 --> 0:03:02.040 We're going to try to give a few gyms that 0:03:02.080 --> 0:03:04.120 people can use in a day to day life because 0:03:04.160 --> 0:03:06.000 a lot of times, as you said, we don't know, 0:03:06.520 --> 0:03:08.240 and it's an ongoing learning process. 0:03:08.320 --> 0:03:08.480 Right. 0:03:08.560 --> 0:03:10.840 So one of the things I want to talk about 0:03:10.880 --> 0:03:12.760 is that we covered credit and the importance of credit. 0:03:12.919 --> 0:03:15.040 And I know you have a credit company, right for sure. 0:03:15.800 --> 0:03:18.360 But I got a question a DM where somebody says, like, 0:03:18.360 --> 0:03:21.280 what's the best way to pay off your debt? Like, 0:03:21.360 --> 0:03:23.119 I know some people have a process where they pay 0:03:23.120 --> 0:03:26.800 off the higher interest credit cards first. Some people do 0:03:27.040 --> 0:03:29.920 the lowest balances first, Like what's your philosophy on that? 0:03:30.080 --> 0:03:30.280 Yeah? 0:03:30.280 --> 0:03:34.000 So so I like, I like the lowest balanced philosophy, 0:03:35.160 --> 0:03:37.560 and so I wrote a book called you know what 0:03:37.600 --> 0:03:39.720 the fight goes? Twelve steps are paying your credit? Right, 0:03:40.320 --> 0:03:43.400 and I talk about the snowballs is what it's called. 0:03:44.600 --> 0:03:48.640 But the reason though, right, the reason why the philosophy 0:03:48.760 --> 0:03:51.560 on taking your lowest balance and paying that all first 0:03:51.680 --> 0:03:53.120 is important is. 0:03:53.080 --> 0:03:55.560 Because you want some small wins, right. 0:03:55.880 --> 0:03:59.600 It's the mindset I've seen people who try to say, 0:03:59.640 --> 0:04:02.560 all right, you know what this credit card is charging me? 0:04:02.600 --> 0:04:04.760 The highest interest rate, and so I'm gonna pay that 0:04:04.800 --> 0:04:07.840 one first, and then they're paying the minimums and they're 0:04:07.880 --> 0:04:10.320 trying to pay that off, and they wind up looking 0:04:10.360 --> 0:04:13.400 at their credit card balances each month and it looks 0:04:13.440 --> 0:04:16.280 like nothing is going anywhere. They get discouraged, and they 0:04:16.279 --> 0:04:19.280 wind up doing something else because they don't see any 0:04:19.360 --> 0:04:22.800 forward motion. The best way to pay down credit card 0:04:22.800 --> 0:04:25.479 debt is it will always be to take all of 0:04:25.520 --> 0:04:28.560 your credit card your credit cards, put them in order 0:04:28.640 --> 0:04:32.240 from smallest to largest balance, make sure that you pay 0:04:32.320 --> 0:04:35.840 off the minimums on all of the cards. But it's 0:04:35.880 --> 0:04:38.440 gonna start with a budget. Right, You're gonna have to 0:04:38.520 --> 0:04:40.920 budget a certain amount. You're gonna say, you know what, 0:04:41.040 --> 0:04:44.080 I'm gonna budget four hundred dollars each month towards debt, 0:04:44.320 --> 0:04:46.880 pay the minimums on all of the cards, and whatever's 0:04:46.920 --> 0:04:49.320 left over from that four hundred dollars, you're gonna take 0:04:49.360 --> 0:04:52.520 that money and you're gonna pay off the lowest amount completely. 0:04:52.960 --> 0:04:55.039 Right. The following month, you do the same thing. 0:04:55.080 --> 0:04:57.440 You take the lowest amount, you pay the minimums, and 0:04:57.480 --> 0:05:00.479 then whatever's left over you snowball that amount to the 0:05:00.520 --> 0:05:03.280 next one. You keep doing that until you get this 0:05:03.440 --> 0:05:06.719 one account that's your biggest account, and now you take 0:05:06.720 --> 0:05:08.720 that four hundred dollars and you tackle it. You keep 0:05:08.720 --> 0:05:11.320 tackling and keep tackling it, and then eventually you'll realize 0:05:11.320 --> 0:05:15.520 that you'll be debt free. That works because it motivates you. Right, 0:05:15.720 --> 0:05:17.479 If you have a credit card that has two hundred 0:05:17.520 --> 0:05:20.479 dollars on it and you're you went from having five 0:05:20.560 --> 0:05:24.520 cards to four cards, you see like, oh wow, I 0:05:24.560 --> 0:05:25.360 see the result. 0:05:25.440 --> 0:05:26.000 I saw that. 0:05:26.080 --> 0:05:28.800 I that if I stay focused, you know, I cut 0:05:28.880 --> 0:05:31.479 down this one balance, then the next month, you know, 0:05:31.560 --> 0:05:34.000 that card that has five hundred dollars, it takes you 0:05:34.000 --> 0:05:35.080 two months to pay that off. 0:05:35.279 --> 0:05:35.920 Then that's that. 0:05:36.000 --> 0:05:38.919 Those are those small wins, and psychologically it gives you 0:05:38.920 --> 0:05:41.040 the you know, the motivation to keep it. 0:05:41.360 --> 0:05:43.800 At the same time, when you're chopping them down, you're 0:05:43.880 --> 0:05:45.640 decreasing the utilization rate absolutely. 0:05:45.800 --> 0:05:48.120 So we're trying to keep that under thirty hundred thirty. 0:05:47.920 --> 0:05:51.400 Percent, and I think what people people love that thirty 0:05:51.440 --> 0:05:54.880 percent number. But the fact of the matter too, is 0:05:54.920 --> 0:05:57.279 that so your credit goes three hundred to eight fifty, 0:05:57.640 --> 0:06:01.000 anything over seven twenty is excellent credit. Those who have 0:06:01.040 --> 0:06:03.960 a seven twenty or above actually keep their utilization between 0:06:04.000 --> 0:06:07.920 ten and fifteen percent, lower even lower, right, because the mindset, 0:06:08.000 --> 0:06:11.080 or the way the Fyco algorithm works is that it 0:06:11.640 --> 0:06:15.159 rewards people who don't seem as if they need credit. 0:06:15.640 --> 0:06:19.000 So the more it looks like you need credit, the 0:06:19.040 --> 0:06:20.880 more they'll lower your school That's. 0:06:20.720 --> 0:06:22.560 A fact because actually, I just I haven't checked my 0:06:22.600 --> 0:06:24.760 credit a long time. I just checked it and it 0:06:24.839 --> 0:06:29.520 was a seven eighty and at fifteen percent futization ragual 0:06:29.800 --> 0:06:31.599 exactly that same number in seven eighty. 0:06:31.680 --> 0:06:33.440 So if you think about it, right, if I got 0:06:33.480 --> 0:06:36.000 one hundred dollars card and I'm paying ninety dollars, right, 0:06:36.360 --> 0:06:38.200 that seems affordable, right. But if I got a five 0:06:38.240 --> 0:06:41.080 thousand dollars debt and I'm paying ninety, you don't feel 0:06:41.080 --> 0:06:42.520 it exactly. You know what I'm saying. They gonna take 0:06:42.520 --> 0:06:46.039 interest on that. Now you really only pay fifty dollars, right, 0:06:46.080 --> 0:06:47.280 It doesn't feel the same. 0:06:47.279 --> 0:06:49.120 But let me ask you this. Let me ask you this, though. 0:06:49.320 --> 0:06:51.960 So Let's say you have ten credit cards, right, you 0:06:52.000 --> 0:06:55.120 pay off all ten? Yeah, four, Now you only start 0:06:55.200 --> 0:06:57.640 using one on a regular basis, You're not using the 0:06:57.680 --> 0:06:58.239 other nine. 0:06:58.960 --> 0:07:02.040 Does that hurt you? It doesn't, So, yes, and no. Right. 0:07:02.080 --> 0:07:05.160 So what happens is this is that your utilization ratio 0:07:05.279 --> 0:07:07.360 is an aggregate of all the cards that you have, right. 0:07:07.640 --> 0:07:10.680 And so if you have you know, ten cards, you're 0:07:10.680 --> 0:07:13.360 not using any other nine and you're only using the one, 0:07:14.000 --> 0:07:17.440 it's gonna help you because that one card is a 0:07:17.480 --> 0:07:21.440 small percentage of your total utilization. But what happens is 0:07:21.800 --> 0:07:24.440 if you're not using the other nine cards and the 0:07:24.480 --> 0:07:27.520 credit card companies realize that, you know what, this person's 0:07:27.560 --> 0:07:30.239 not using the card, so I'm going to close this account. 0:07:30.560 --> 0:07:34.320 Then as they close the account, that hurts you because 0:07:34.360 --> 0:07:36.680 now fifteen percent of your score is based on your 0:07:36.760 --> 0:07:39.080 length of credit history. And so one of those cards 0:07:39.200 --> 0:07:40.480 might have been a card that you had for a 0:07:40.520 --> 0:07:43.080 long time which was helping you score, and once that 0:07:43.120 --> 0:07:47.040 card is closed, it negatively impacts you. Plus use, you 0:07:47.120 --> 0:07:50.560 lose that utilization, right because now that credit limit is 0:07:50.600 --> 0:07:53.520 no longer available, so that your utilization ratio is going 0:07:53.560 --> 0:07:55.840 to go up once they close those cards, right, And 0:07:55.880 --> 0:08:00.480 so it definitely is sort of like a gain, like 0:08:00.480 --> 0:08:03.320 if you have that many credit cards. A lot of 0:08:03.360 --> 0:08:05.560 times I like to say, if you want, like if 0:08:05.600 --> 0:08:07.680 credit matters, right, if credit doesn't matter like, if you're 0:08:07.680 --> 0:08:10.880 not gonna buy anything in a short term, then you know, 0:08:11.080 --> 0:08:13.720 I wouldn't put stuff on your credit cards just to 0:08:13.800 --> 0:08:17.400 keep this number up, right, But if credit matters, or 0:08:17.440 --> 0:08:19.880 if you're gonna buy something or whatever the case may be, 0:08:19.960 --> 0:08:23.040 and you need credit, I would say, you know, use 0:08:23.120 --> 0:08:26.040 your credit some credit cards for things that you would 0:08:26.040 --> 0:08:27.120 have paid cash for anyway. 0:08:27.480 --> 0:08:27.640 Right. 0:08:27.680 --> 0:08:30.640 And so if let's say, for instance, you use cash 0:08:30.680 --> 0:08:33.280 to buy gas, right, use a credit card and that 0:08:33.360 --> 0:08:35.880 money that you would have, you know, paid or that 0:08:35.920 --> 0:08:38.080 money you would have used to buy the gas, pay 0:08:38.120 --> 0:08:38.840 off the card with that. 0:08:40.280 --> 0:08:42.520 This episode is brought to you by P and C Bank. 0:08:42.920 --> 0:08:45.680 A lot of people think podcasts about work are boring, 0:08:45.880 --> 0:08:49.760 and sure they definitely can be, but understanding of professionals 0:08:49.800 --> 0:08:53.080 routine shows us how they achieve their success little by little, 0:08:53.440 --> 0:08:57.080 day after day. 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These are just 0:10:46.480 --> 0:10:50.240 some of the heinous migrant criminals caught because of President 0:10:50.280 --> 0:10:50.720 Donald J. 0:10:50.800 --> 0:10:51.720 Trump's leadership. 0:10:52.040 --> 0:10:55.640 I'm Christine Nohm, the United States Secretary of Homeland Security. 0:10:55.960 --> 0:10:59.680 Under President Trump, attempted illegal border crossings are at the 0:10:59.720 --> 0:11:03.640 lower levels ever recorded, and over one hundred thousand illegal 0:11:03.679 --> 0:11:07.440 aliens have been arrested. If you were here illegally your 0:11:07.600 --> 0:11:10.920 next you will be fine nearly one thousand dollars a day. 0:11:11.080 --> 0:11:15.080 Imprisoned and deported, you will never return. But if you 0:11:15.200 --> 0:11:16.560 register using our. 0:11:16.440 --> 0:11:20.040 CBP home app and leave now, you could be allowed. 0:11:19.640 --> 0:11:23.240 To return legally. Do what's right. Leave now. 0:11:23.559 --> 0:11:28.000 Under President Trump, America's laws, border and families will be. 0:11:27.920 --> 0:11:30.560 Protected sponsored by the United States Department of Homeland Security. 0:11:30.679 --> 0:11:33.000 For that way is at least some activity on it. 0:11:33.120 --> 0:11:34.680 So the credit card companies don't close. 0:11:34.800 --> 0:11:36.560 Let me ask you this. Also, let's say you get 0:11:36.600 --> 0:11:38.200 because they got all kind of credit card. Now they 0:11:38.200 --> 0:11:40.600 got cards for like medical purposes. 0:11:40.720 --> 0:11:40.800 Right. 0:11:41.120 --> 0:11:43.640 So let's say you have a low utilization rate, but 0:11:43.720 --> 0:11:45.760 you get one card for a medical purpose and you 0:11:46.360 --> 0:11:49.760 max that card out. Yep, but your other utilization is good, 0:11:49.800 --> 0:11:52.440 but you max that one card out, that hurts you. 0:11:52.600 --> 0:11:54.960 It doesn't because it's the aggregate, the right. And so 0:11:55.000 --> 0:11:56.600 if you let's say you had ten cards with one 0:11:56.640 --> 0:11:59.199 thousand dollars, right, and you max out one card of 0:11:59.280 --> 0:12:02.920 one thousand dollars, your your utilization is still only ten percent, right, 0:12:02.960 --> 0:12:05.920 because your total available limit is ten thousand when you 0:12:05.960 --> 0:12:06.840 look at all of the cars. 0:12:06.920 --> 0:12:09.319 And so that's what I was saying, where when it Yeah. 0:12:09.120 --> 0:12:11.800 When you close it, it can hurt you because if now, 0:12:11.880 --> 0:12:14.920 if you max at one thousand dollars and let's say 0:12:14.920 --> 0:12:17.120 the non card say, you know what, he ain't using 0:12:17.160 --> 0:12:19.199 these cars to let me close these out. Now, your 0:12:19.240 --> 0:12:21.880 utilization go from ten percent to one hundred percent. And 0:12:21.880 --> 0:12:23.000 that's gonna immediately. 0:12:23.400 --> 0:12:23.559 You know. 0:12:24.960 --> 0:12:26.600 That's a smart shress, you though, Right, if you have 0:12:26.640 --> 0:12:28.720 ten cars, maybe you have ten different purposes. 0:12:28.760 --> 0:12:30.120 So if it's a supermarket, or if. 0:12:30.000 --> 0:12:33.440 It's gas, or if it's you know, electronics or something 0:12:33.480 --> 0:12:35.600 like that, like you have a purpose for each one, 0:12:36.000 --> 0:12:38.199 just like I'm randomly all right, that one's max. 0:12:38.320 --> 0:12:40.160 Let me go to the next. What I'm saying, make a 0:12:40.160 --> 0:12:41.000 purpose for each car? 0:12:41.160 --> 0:12:43.760 Yeah, because because because credit card debt is the worst 0:12:43.760 --> 0:12:45.760 type of debt that you could possibly have, right, Like 0:12:45.880 --> 0:12:49.160 credit card debt, you're paying more than what it's worth. 0:12:49.240 --> 0:12:50.719 So yeah, and. 0:12:50.720 --> 0:12:53.640 Student loans, I mean, but even with student loans, you know, 0:12:53.800 --> 0:12:57.640 you know, at least with student loans you get a degree, 0:12:58.000 --> 0:12:59.920 you know you're able to like, you know, you know 0:13:00.000 --> 0:13:01.720 what I'm saying, Like I'm not a you know, because 0:13:01.800 --> 0:13:03.600 I didn't get a degree till later on in life. 0:13:03.920 --> 0:13:05.760 So I'm you know, I could go either way with 0:13:05.880 --> 0:13:06.760 student loans. 0:13:06.960 --> 0:13:10.160 But credit cards are like is there's no reason why 0:13:10.240 --> 0:13:11.680 you should be paying credit card debt? 0:13:11.720 --> 0:13:12.360 You know what I'm saying. 0:13:12.520 --> 0:13:15.320 All right, let's good information, very good information. So let's 0:13:15.360 --> 0:13:18.319 go retirement plan. Yes, right, people ask another question I 0:13:18.320 --> 0:13:22.840 got in the DM Okay, so four one k yeah, 0:13:23.520 --> 0:13:26.520 Ira raw ira cantut with the four one K? 0:13:26.559 --> 0:13:27.920 Why is it a good idea for people to put 0:13:27.920 --> 0:13:29.440 money into a four months man? So the foll on 0:13:29.520 --> 0:13:31.560 k is it's like free money. So so first of all, 0:13:31.679 --> 0:13:32.120 is this right? 0:13:32.600 --> 0:13:35.880 Is that when you think about your the money that 0:13:35.920 --> 0:13:38.440 you pay to the I R s uh, when you 0:13:38.480 --> 0:13:41.520 put money into a retirementcount, it lowers you, you know, 0:13:41.559 --> 0:13:44.120 what you have to pay to them, because part of 0:13:44.160 --> 0:13:47.280 that money is now tax is not tax deductible, right, 0:13:47.400 --> 0:13:49.800 or you don't pay taxes on that money, right. And 0:13:49.880 --> 0:13:52.600 so putting your money in a full one K allows 0:13:52.640 --> 0:13:55.600 you to say, you know what, Uh, in the future, 0:13:55.800 --> 0:13:59.400 I'll have this money to retire off, but I don't 0:13:59.440 --> 0:14:01.000 have to pay ten on it right now. 0:14:01.160 --> 0:14:01.360 Right. 0:14:02.080 --> 0:14:05.640 But also a lot of employers will match your four 0:14:05.679 --> 0:14:07.720 one K, so they might they might match you up 0:14:07.760 --> 0:14:10.560 to four percent, which means that if or four percent 0:14:10.600 --> 0:14:12.760 six percent. Four percent has been sort of like the 0:14:12.800 --> 0:14:16.280 industry norm that I've heard. And so if a job 0:14:16.360 --> 0:14:19.160 says if you they want to encourage you to say 0:14:19.160 --> 0:14:21.760 for retirement, so they say, if you put it, whatever 0:14:21.800 --> 0:14:23.920 you put in, we're gonna we're gonna match it up 0:14:23.960 --> 0:14:26.840 to four percent, which means that four percent is free money. 0:14:27.200 --> 0:14:29.440 And as long as you're invested, they might they might 0:14:29.480 --> 0:14:31.480 have a stipulation, all right, you have to be with 0:14:31.600 --> 0:14:33.680 our company five years or whatever the case may be. 0:14:34.040 --> 0:14:37.400 You keep that money and so not investing in a 0:14:37.440 --> 0:14:40.400 four one K, you're actually losing money, free money that 0:14:40.520 --> 0:14:43.040 the employer would have given you. And so you know, 0:14:43.080 --> 0:14:44.880 so that's one reason. But then when you think about 0:14:45.080 --> 0:14:49.680 a retirement, just as a whole, social Security might not 0:14:49.760 --> 0:14:52.880 be here for us, and so by the time you know, 0:14:52.920 --> 0:14:56.640 we become of age and it's time to retire, there's 0:14:56.680 --> 0:14:59.280 gonna be a certain number that you're gonna need each 0:14:59.360 --> 0:15:02.120 month to live off of, and you're gonna want to 0:15:02.200 --> 0:15:05.840 have an account that will be able to supply some 0:15:05.920 --> 0:15:08.480 of that income so that you you don't have to 0:15:08.480 --> 0:15:10.880 be sixty seventy working at Walmart. 0:15:10.920 --> 0:15:13.200 So and in terms of people who come from the 0:15:13.320 --> 0:15:15.600 education field, obviously, I mean I speak to teachers all 0:15:15.640 --> 0:15:18.480 the time, and yes, they educate our children, but they 0:15:18.520 --> 0:15:20.560 have no idea about finance. So we don't have a 0:15:20.560 --> 0:15:22.160 four to one kid, we have a four H three B. 0:15:22.360 --> 0:15:23.360 Yeah, same thing. 0:15:23.400 --> 0:15:26.320 Same, same exact thing, right, Because the importance of that, 0:15:26.480 --> 0:15:29.800 especially you know someone that works in the education field, 0:15:30.000 --> 0:15:32.640 is that you want to make sure that you're not 0:15:32.680 --> 0:15:34.560 going to be able to teach forever and then when 0:15:34.840 --> 0:15:38.520 it's time for you to leave that you know that institution. 0:15:38.960 --> 0:15:40.880 You want to be able to have money coming in. 0:15:40.960 --> 0:15:44.080 You want to diversify your income, and so putting putting 0:15:44.120 --> 0:15:46.920 that money out up front is going to allow it 0:15:46.960 --> 0:15:50.400 to grow and if you find right So you know 0:15:50.400 --> 0:15:52.440 a lot of people are like weary, you know, especially 0:15:52.480 --> 0:15:55.200 when you think about the Bernie madeoffs and what happened 0:15:55.240 --> 0:15:57.200 in the you know, the great recession two thousand and eight, 0:15:57.240 --> 0:16:00.160 two thousand and nine, people are like leary of you know, 0:16:00.200 --> 0:16:03.680 putting their money in the markets. But if you remove 0:16:03.840 --> 0:16:07.800 that isolated incident out on average, you know, you know, 0:16:08.240 --> 0:16:11.120 when you look at the stock market, markets are you know, 0:16:11.160 --> 0:16:14.320 it's always positive, right, and so just kind of keep 0:16:14.360 --> 0:16:17.360 an eye out on where your money's being invested. But 0:16:17.400 --> 0:16:19.960 that money is also gonna it's not like the money 0:16:19.960 --> 0:16:21.920 that you put in is that's not gonna stay at 0:16:21.960 --> 0:16:24.280 the amount that you put in. You're actually gonna earn 0:16:24.360 --> 0:16:26.320 interest on that and that money is going to grow 0:16:26.640 --> 0:16:29.160 through compound interest. So that way, you know, what you 0:16:29.240 --> 0:16:31.440 start off with is gonna give you a nice little cushion, 0:16:32.080 --> 0:16:33.280 you know, for you when you retire. 0:16:33.680 --> 0:16:36.360 And also the raw there's another great way, Yeah, I 0:16:36.400 --> 0:16:36.640 love it. 0:16:37.280 --> 0:16:39.360 That's the way where you you don't pay you don't 0:16:39.400 --> 0:16:40.800 save money or taxes today. 0:16:40.800 --> 0:16:41.960 But it's tax freelated. 0:16:41.600 --> 0:16:45.440 On absolutely, And honestly I like that better, right, because 0:16:45.440 --> 0:16:50.360 what happens is this, you know, tax deductible means that 0:16:50.840 --> 0:16:53.600 you know, I can deduct this amount if I put 0:16:53.720 --> 0:16:56.240 If I put ten thousand dollars, or let's say I 0:16:56.240 --> 0:16:59.240 put five thousand dollars towards my retirement, uh, and I 0:16:59.280 --> 0:17:02.320 made forty five thousand dollars, then I'm only I could 0:17:02.320 --> 0:17:04.960 deduct that five thousand off my taxes. I'm paying forty 0:17:05.000 --> 0:17:08.879 thousand taxes. But then now that five thousand that I put, 0:17:09.040 --> 0:17:11.400 when it grows to one hundred thousand when I retire, 0:17:11.840 --> 0:17:14.040 you know I now need to pay taxes as I 0:17:14.040 --> 0:17:17.040 will withdraw that money, right and so and so it's 0:17:17.119 --> 0:17:20.200 it's you know, it's tax deductible, but you pay taxes later. 0:17:20.280 --> 0:17:22.439 And the the whole thought process is that when I 0:17:22.440 --> 0:17:25.320 get older, I'll have lower a lower tax burden, and 0:17:25.359 --> 0:17:25.960 so that so. 0:17:26.000 --> 0:17:27.040 That that works that way. 0:17:27.520 --> 0:17:30.320 But with the WROW, I love the ROT because it's 0:17:30.359 --> 0:17:34.440 not tax deductible, but it's tax free distribution, right, which means, 0:17:34.480 --> 0:17:37.320 all right, great, I put five thousand dollars into this 0:17:37.480 --> 0:17:40.960 into this rough IRA. This year, I made forty five 0:17:41.000 --> 0:17:43.760 thousand dollars, I'm gonna pay forty five thousand in taxes 0:17:43.840 --> 0:17:47.000 right But now that five thousand, when it grows to 0:17:47.000 --> 0:17:50.120 one hundred thousand, and I could withdraw a tax free, 0:17:50.200 --> 0:17:53.600 I never have to owe the irs anything on that money, 0:17:53.600 --> 0:17:56.399 on that on that growth of that money. It's you know, 0:17:56.520 --> 0:17:58.919 I love that especially for young people. Maybe if you're 0:17:58.920 --> 0:18:02.159 a little older, you know, it may not necessarily be 0:18:02.200 --> 0:18:03.840 the right thing to do. But the reason why I 0:18:03.840 --> 0:18:06.920 love it for young people is because you know, right now, 0:18:07.040 --> 0:18:09.520 as as a young person who has more, you know, 0:18:10.000 --> 0:18:11.600 more earning ability. 0:18:11.400 --> 0:18:12.920 You could take you know, bigger risk. 0:18:13.240 --> 0:18:15.600 And if you take that money that's in a raw 0:18:15.720 --> 0:18:17.760 and you put it into something that is giving you 0:18:17.800 --> 0:18:20.720 a great rate of return, all of that growth, you 0:18:20.720 --> 0:18:21.760 don't have to pay taxes on. 0:18:23.119 --> 0:18:23.359 Yes. 0:18:23.880 --> 0:18:28.920 Yeah, somebody said one time, they said, if if you, 0:18:29.000 --> 0:18:31.720 if you, if you were never told the information, you 0:18:31.760 --> 0:18:34.760 can't be help responsible. If you were told the information 0:18:35.000 --> 0:18:37.880 and just chose not to do anything with that's on you, absolutely, 0:18:38.320 --> 0:18:39.440 So you can. 0:18:39.359 --> 0:18:40.560 Never say you weren't told. 0:18:40.359 --> 0:18:44.880 The information applications to your application to you were trying 0:18:44.880 --> 0:18:46.600 to give you as much information as we can give you, 0:18:46.640 --> 0:18:48.720 but ultimately you have to apply it. 0:18:50.720 --> 0:18:55.920 My graduates from my school being forced bad drop Drop, 0:18:56.560 --> 0:19:08.240 Mike Drop bad Drop. 0:19:00.080 --> 0:19:13.040 An illegal alien from Guatemala charged with raping a child 0:19:13.119 --> 0:19:16.919 in Massachusetts. An MS thirteen gang member from Al Salvador 0:19:17.160 --> 0:19:21.320 accused of murdering a Texas man of Venezuelan charged with 0:19:21.359 --> 0:19:25.280