1 00:00:01,240 --> 00:00:01,600 Speaker 1: Earners. 2 00:00:01,639 --> 00:00:03,760 Speaker 2: What's up. You ever walk into a small business and 3 00:00:03,800 --> 00:00:07,320 Speaker 2: everything just works like The checkout is fast, the receipts 4 00:00:07,320 --> 00:00:10,840 Speaker 2: are digital, tipping is a breeze, and you're out the 5 00:00:10,880 --> 00:00:15,000 Speaker 2: door before the line even builds. Odds are they're using Square. 6 00:00:15,480 --> 00:00:18,079 Speaker 2: We love supporting businesses that run on Square because it 7 00:00:18,160 --> 00:00:21,119 Speaker 2: just feels seamless. Whether it's a local coffee shop, a 8 00:00:21,239 --> 00:00:23,639 Speaker 2: vendor at a pop up market, or even one of 9 00:00:23,680 --> 00:00:26,799 Speaker 2: our merch partners, Square makes it easy for them to 10 00:00:26,840 --> 00:00:30,680 Speaker 2: take payments, manage inventory, and run their business with confidence, 11 00:00:31,040 --> 00:00:34,320 Speaker 2: all from one simple system. If you're a business owner 12 00:00:34,520 --> 00:00:37,920 Speaker 2: or even just thinking about launching something soon, Square is 13 00:00:38,040 --> 00:00:40,080 Speaker 2: hands down one of the best tools out there to 14 00:00:40,120 --> 00:00:44,080 Speaker 2: help you start, run, and grow. It's not just about payments, 15 00:00:44,479 --> 00:00:47,120 Speaker 2: it's about giving you time back so you can focus 16 00:00:47,159 --> 00:00:49,879 Speaker 2: on what matters most Ready. To see how Square can 17 00:00:49,880 --> 00:00:54,720 Speaker 2: transform your business, visit Square dot com backslash go backslash 18 00:00:54,800 --> 00:00:58,960 Speaker 2: eyl to learn more that Square dot com backslash, go 19 00:00:59,360 --> 00:01:03,560 Speaker 2: backslash eyl. Don't wait, don't hesitate. Let's Square handle the 20 00:01:03,640 --> 00:01:07,400 Speaker 2: back end so you can keep pushing your vision forward. 21 00:01:09,760 --> 00:01:12,000 Speaker 2: This episode is brought to you by P and C Bank, 22 00:01:12,400 --> 00:01:15,160 Speaker 2: a lot of people think podcasts about work are boring, 23 00:01:15,360 --> 00:01:19,240 Speaker 2: and sure, they definitely can be, but understanding of professional's 24 00:01:19,319 --> 00:01:22,559 Speaker 2: routine shows us how they achieve their success little by little, 25 00:01:22,920 --> 00:01:26,600 Speaker 2: day after day. It's like banking with P and C Bank. 26 00:01:27,040 --> 00:01:29,839 Speaker 2: It might seem boring to save, plan and make calculated 27 00:01:29,880 --> 00:01:33,000 Speaker 2: decisions with your bank, but keeping your money boring is 28 00:01:33,000 --> 00:01:36,360 Speaker 2: what helps you live or more happily fulfilled life. P 29 00:01:36,440 --> 00:01:41,280 Speaker 2: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 30 00:01:41,319 --> 00:01:43,960 Speaker 2: Boring since eighteen sixty five is a service mark of 31 00:01:44,000 --> 00:01:47,240 Speaker 2: the PNC Financial Service Group, Inc. P and C Bank 32 00:01:47,680 --> 00:01:49,840 Speaker 2: National Association Member FDIC. 33 00:01:51,640 --> 00:01:53,680 Speaker 3: A couple of days ago, I'll put on Twitter and 34 00:01:53,800 --> 00:02:00,360 Speaker 3: Instagram about how to get your child a lot of 35 00:02:00,360 --> 00:02:02,000 Speaker 3: money in their retirement. So what I said was you 36 00:02:02,000 --> 00:02:04,920 Speaker 3: could turn eight How to turn eight thousand dollars into 37 00:02:04,960 --> 00:02:08,680 Speaker 3: three hundred and twenty five thousand tax free for your child. 38 00:02:09,240 --> 00:02:12,160 Speaker 3: So here's the steps. So you open a RAWIRA for 39 00:02:12,240 --> 00:02:15,880 Speaker 3: your child. You put two thousand annually in between the 40 00:02:15,919 --> 00:02:20,880 Speaker 3: ages of fourteen and seventeen and let it sit until 41 00:02:20,880 --> 00:02:24,800 Speaker 3: they reach age sixty. Assuming an average of nine percent 42 00:02:24,840 --> 00:02:28,560 Speaker 3: a year, that will equal three hundred and twenty five 43 00:02:28,600 --> 00:02:34,359 Speaker 3: thousand dollars tax free at the end from your eight 44 00:02:34,400 --> 00:02:38,399 Speaker 3: thousand dollars investment, and that will be a three thousand, 45 00:02:38,600 --> 00:02:41,160 Speaker 3: nine hundred and sixty eight percent rate of return. So 46 00:02:41,360 --> 00:02:47,160 Speaker 3: let me explain this in a little bit more detail. So, okay, 47 00:02:47,280 --> 00:02:51,040 Speaker 3: and when a child starts to work, right of working age, 48 00:02:51,680 --> 00:02:54,679 Speaker 3: you can open up a retirement account for your child, 49 00:02:54,840 --> 00:02:58,040 Speaker 3: an IRA or raw iray. I used raw ira because 50 00:02:58,040 --> 00:02:59,919 Speaker 3: a raw fira is not tax when you take the 51 00:03:00,080 --> 00:03:03,280 Speaker 3: money out. Now, that's why I used age fourteen to 52 00:03:03,320 --> 00:03:06,560 Speaker 3: seventeen because in most states, fourteen is when you can 53 00:03:06,600 --> 00:03:09,960 Speaker 3: start working, and you know, seventeen is like kind of 54 00:03:09,960 --> 00:03:11,840 Speaker 3: when you kind of phase out out of high school 55 00:03:11,840 --> 00:03:13,600 Speaker 3: and now you're kind of going into the eighteen. You're 56 00:03:13,600 --> 00:03:17,040 Speaker 3: an adult at that point. So not technically my responsibility. 57 00:03:17,080 --> 00:03:19,600 Speaker 3: Just keep putting money into your account. So I did. 58 00:03:20,919 --> 00:03:23,440 Speaker 3: I did. If you put money in for four years, right, 59 00:03:25,040 --> 00:03:28,040 Speaker 3: two thousand dollars, which I think is a reasonable amount. 60 00:03:28,680 --> 00:03:30,760 Speaker 3: I didn't want to do something that was crazy, like 61 00:03:30,840 --> 00:03:33,000 Speaker 3: you know, and there's limits of how much money you 62 00:03:33,040 --> 00:03:35,600 Speaker 3: can put into an IRA anyway, right, And then so 63 00:03:35,640 --> 00:03:38,280 Speaker 3: how I got the nine percent a year was that's 64 00:03:38,320 --> 00:03:41,200 Speaker 3: the average for the S and P five hundred over 65 00:03:41,240 --> 00:03:43,160 Speaker 3: the last twenty years. So I think that that's a 66 00:03:43,280 --> 00:03:48,120 Speaker 3: very realistic expectation going forward. And that's like just SMP. 67 00:03:48,240 --> 00:03:51,400 Speaker 3: We're not even counting QQQ or you know, tech stocks, 68 00:03:51,400 --> 00:03:55,119 Speaker 3: which I've done obviously much much better than that, right, 69 00:03:56,720 --> 00:03:59,000 Speaker 3: and that would give the child three hundred and twenty 70 00:03:59,040 --> 00:04:03,200 Speaker 3: five thousand dollars. So one of these, you know, is 71 00:04:03,480 --> 00:04:07,520 Speaker 3: there's always criticism for everything because it's America. So some 72 00:04:07,560 --> 00:04:11,040 Speaker 3: people were like, well, damn, they got to wait until 73 00:04:11,040 --> 00:04:13,360 Speaker 3: they's sixty years old. The whole point of it is 74 00:04:13,360 --> 00:04:16,040 Speaker 3: that it's a retirement account, right, it's like trust almost 75 00:04:16,080 --> 00:04:20,240 Speaker 3: in a sense. And how many people would be mad 76 00:04:20,680 --> 00:04:23,640 Speaker 3: if they when the data they turned sixty, they had 77 00:04:23,640 --> 00:04:25,640 Speaker 3: three hundred and twenty five thousand dollars tax free, Like, 78 00:04:26,440 --> 00:04:27,600 Speaker 3: who would be mad about that? 79 00:04:27,920 --> 00:04:28,160 Speaker 4: Yep? 80 00:04:28,640 --> 00:04:32,520 Speaker 3: Right, and it only cost you eight thousand dollars, right, 81 00:04:32,960 --> 00:04:36,479 Speaker 3: So why would you not want to set your child 82 00:04:36,560 --> 00:04:38,400 Speaker 3: up not to say that this is the only money 83 00:04:38,400 --> 00:04:41,520 Speaker 3: that they're going to have, but it's something that you 84 00:04:41,600 --> 00:04:45,320 Speaker 3: can do for their future, right to help Then people 85 00:04:45,440 --> 00:04:48,680 Speaker 3: was like, well, inflation, three hundred and twenty five thousand 86 00:04:48,680 --> 00:04:53,080 Speaker 3: dollars is not even going to be worth anything. Okay, 87 00:04:53,360 --> 00:04:57,920 Speaker 3: well better than nothing. It's better than nothing. And as 88 00:04:57,920 --> 00:04:59,680 Speaker 3: I said, if you can do better than almost the 89 00:04:59,720 --> 00:05:05,560 Speaker 3: fourth thousand percent rate of return over that timeframe tax free, 90 00:05:06,040 --> 00:05:08,240 Speaker 3: which is actually a higher a higher rate of return 91 00:05:08,320 --> 00:05:10,480 Speaker 3: because you have the factor in taxes, there's no taxes 92 00:05:10,520 --> 00:05:14,080 Speaker 3: in it. I don't think that there's something that you 93 00:05:14,080 --> 00:05:20,560 Speaker 3: should just throw away, right, And if you think that 94 00:05:20,560 --> 00:05:23,200 Speaker 3: that's not enough money, then you could put in more money, right, 95 00:05:23,240 --> 00:05:25,760 Speaker 3: you could put up to six thousand thinks sixty to 96 00:05:25,800 --> 00:05:28,520 Speaker 3: an IRA. But this is just the IRA play. I mean, 97 00:05:28,560 --> 00:05:31,479 Speaker 3: you can do this with a non qualified account. Also, 98 00:05:31,560 --> 00:05:33,000 Speaker 3: you can do it with a money. You can put 99 00:05:33,040 --> 00:05:35,040 Speaker 3: one hundred thousand dollars a year if you if you 100 00:05:35,080 --> 00:05:37,760 Speaker 3: want to, if you are blessed to have that much money, 101 00:05:37,760 --> 00:05:39,479 Speaker 3: and you feel like, you know, three hundred and twenty 102 00:05:39,520 --> 00:05:42,440 Speaker 3: five thousand dollars tax free is not enough, well you 103 00:05:42,520 --> 00:05:45,120 Speaker 3: do the calculation and equal whatever you want to equal 104 00:05:45,160 --> 00:05:47,960 Speaker 3: a million. But the idea is that when you put 105 00:05:48,040 --> 00:05:53,320 Speaker 3: money in early, there's a thing called compounding interest that 106 00:05:53,440 --> 00:05:56,400 Speaker 3: works in your favor. And the longer that you can 107 00:05:56,440 --> 00:06:00,360 Speaker 3: go without actually having to access that money, the more 108 00:06:00,360 --> 00:06:01,960 Speaker 3: beneficiary will be in the long. 109 00:06:01,880 --> 00:06:02,800 Speaker 1: Run for the child. 110 00:06:03,200 --> 00:06:06,800 Speaker 3: So we talk about college savings a lot for children. 111 00:06:07,040 --> 00:06:11,120 Speaker 3: That's important, but we haven't really spoken a lot about 112 00:06:11,640 --> 00:06:15,159 Speaker 3: retirement savings for children. Like you could literally start and 113 00:06:15,240 --> 00:06:18,120 Speaker 3: plan your child's retirement now, or like I said, just 114 00:06:18,160 --> 00:06:20,240 Speaker 3: have an esteache for them so when they get to 115 00:06:20,279 --> 00:06:24,800 Speaker 3: a point where they are at retirement, they have another 116 00:06:25,120 --> 00:06:27,680 Speaker 3: source of money that can be added with. They they 117 00:06:27,720 --> 00:06:31,320 Speaker 3: might have three million dollars on their own, okay, now 118 00:06:31,480 --> 00:06:34,720 Speaker 3: is other three hundred thousand right now? They can use 119 00:06:34,760 --> 00:06:39,680 Speaker 3: this to buy a home in Ghana, right or they 120 00:06:39,720 --> 00:06:42,120 Speaker 3: can use this to give to their grandchildren. They could 121 00:06:42,120 --> 00:06:43,960 Speaker 3: do a variety of other things. Like nobody's ever going 122 00:06:44,040 --> 00:06:47,640 Speaker 3: to turn down extra money. So that was something that 123 00:06:47,720 --> 00:06:51,000 Speaker 3: you know, once again going back to my financial advising days, 124 00:06:51,040 --> 00:06:53,480 Speaker 3: you know, I set iras up for people and then 125 00:06:53,480 --> 00:06:56,560 Speaker 3: I also set iras up for people's children sometimes. And 126 00:06:56,640 --> 00:07:01,200 Speaker 3: another benefit for the entrepreneur is that you can actually 127 00:07:01,400 --> 00:07:05,599 Speaker 3: start this type of program earlier than fourteen because as 128 00:07:05,680 --> 00:07:07,680 Speaker 3: long as your child is working and actually doing a 129 00:07:07,680 --> 00:07:09,560 Speaker 3: real job, so they could be nine years old, they 130 00:07:09,560 --> 00:07:12,280 Speaker 3: could be ten years old, and the money so now 131 00:07:12,280 --> 00:07:13,960 Speaker 3: you can put money aside and you can take it 132 00:07:13,960 --> 00:07:16,000 Speaker 3: from the salary that you're paying them. You can pay 133 00:07:16,040 --> 00:07:18,160 Speaker 3: your child up to like twelve thousand semi dollars a 134 00:07:18,200 --> 00:07:21,120 Speaker 3: year as an entrepreneur and get a tax right off 135 00:07:21,120 --> 00:07:23,480 Speaker 3: for that money that you're paying them. Right, So now 136 00:07:23,520 --> 00:07:26,840 Speaker 3: you can do the same play where you can actually 137 00:07:26,920 --> 00:07:29,000 Speaker 3: like let's say you're paying them two thousand dollars a year, 138 00:07:29,320 --> 00:07:32,040 Speaker 3: right and then the money that you're paying goes into 139 00:07:32,200 --> 00:07:35,040 Speaker 3: a retirement account, So now you're getting a tax deduction 140 00:07:36,520 --> 00:07:39,600 Speaker 3: and you're also being able to save for your child's 141 00:07:39,640 --> 00:07:45,560 Speaker 3: retirement as well. So that's a caveat in it for entrepreneurs. 142 00:07:45,560 --> 00:07:47,600 Speaker 3: But even if you're not an entrepreneur and you just 143 00:07:47,640 --> 00:07:50,800 Speaker 3: work a regular nine to five job, you're still able 144 00:07:50,920 --> 00:07:55,000 Speaker 3: to put money away on a tax deferred basis that 145 00:07:55,040 --> 00:07:57,520 Speaker 3: will grow and your child can access it later or 146 00:07:57,560 --> 00:07:58,600 Speaker 3: in life tax free. 147 00:08:00,080 --> 00:08:01,960 Speaker 1: For the long term. I think the biggest lesson in 148 00:08:02,080 --> 00:08:05,200 Speaker 1: the last four years just the longer you can invest 149 00:08:06,560 --> 00:08:10,040 Speaker 1: and plan in terms of succession for the family, the better. 150 00:08:10,120 --> 00:08:12,880 Speaker 1: So I know people may have some pushback for it, 151 00:08:12,920 --> 00:08:15,240 Speaker 1: but like you said, who want Who wouldn't want an 152 00:08:15,240 --> 00:08:18,480 Speaker 1: extra three hundred thousand or four hundred thousand upon retirement, 153 00:08:18,680 --> 00:08:20,480 Speaker 1: and with the rate of inflation, you're you're going to 154 00:08:20,560 --> 00:08:20,840 Speaker 1: need it. 155 00:08:21,240 --> 00:08:23,480 Speaker 2: Trust me, even with the regular face like what does 156 00:08:23,520 --> 00:08:26,360 Speaker 2: that turn into? Like let's say it's two seventy five, right. 157 00:08:26,280 --> 00:08:28,320 Speaker 1: Like you still it was worth it. 158 00:08:28,320 --> 00:08:30,000 Speaker 2: It's still a great nest egg. And a lot of times, 159 00:08:30,080 --> 00:08:34,280 Speaker 2: especially in our communities, when we approach retirement, right, yes, 160 00:08:35,280 --> 00:08:38,080 Speaker 2: for your kids, but you're also taking care of the 161 00:08:38,160 --> 00:08:40,480 Speaker 2: generation ahead of you a lot of times, right, and 162 00:08:40,559 --> 00:08:44,280 Speaker 2: so you have an additional responsibility to not only take 163 00:08:44,280 --> 00:08:46,840 Speaker 2: care of your family, but you know your parents or 164 00:08:47,000 --> 00:08:50,120 Speaker 2: you know sometimes if you have aunts that took care 165 00:08:50,160 --> 00:08:52,080 Speaker 2: of you, were responsible for you. Now you're taking care 166 00:08:52,120 --> 00:08:54,440 Speaker 2: of them. So where are you getting that money from? 167 00:08:54,720 --> 00:08:58,280 Speaker 2: So it's always it's always always recommended to always plan 168 00:08:58,360 --> 00:09:01,040 Speaker 2: for the future. Please plant for the future, plant for 169 00:09:01,360 --> 00:09:02,000 Speaker 2: because you don't know. 170 00:09:02,120 --> 00:09:05,720 Speaker 4: An illegal alien from Guatemala charged with raping a child 171 00:09:05,800 --> 00:09:09,599 Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador 172 00:09:09,840 --> 00:09:13,959 Speaker 4: accused of murdering a Texas man of Venezuelan charged with 173 00:09:14,040 --> 00:09:17,960 Speaker 4: filming and selling child pornography in Michigan. These are just 174 00:09:18,040 --> 00:09:21,800 Speaker 4: some of the heinous migrant criminals caught because of President 175 00:09:21,840 --> 00:09:25,440 Speaker 4: Donald J. Trump's leadership. I'm Christy nom the United States 176 00:09:25,440 --> 00:09:30,240 Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border 177 00:09:30,280 --> 00:09:33,800 Speaker 4: crossings are at the lowest levels ever recorded, and over 178 00:09:33,880 --> 00:09:37,080 Speaker 4: one hundred thousand illegal aliens have been arrested. If you 179 00:09:37,160 --> 00:09:41,000 Speaker 4: are here illegally, your next you will be fined nearly 180 00:09:41,120 --> 00:09:45,120 Speaker 4: one thousand dollars a day, imprisoned, and deported. You will 181 00:09:45,160 --> 00:09:48,800 Speaker 4: never return. But if you register using our CBP home 182 00:09:48,840 --> 00:09:52,240 Speaker 4: app and leave now, you could be allowed to return legally. 183 00:09:52,600 --> 00:09:57,320 Speaker 4: Do what's right. Leave now. Under President Trump, America's laws, 184 00:09:57,520 --> 00:10:00,880 Speaker 4: border and families will be protected. Sponsored by the United 185 00:10:00,920 --> 00:10:02,199 Speaker 4: States Department of Homeland Security.