WEBVTT - Preparing for Parenthood Financially 0:00:16.280 --> 0:00:19.079 What's up? B a Fam? It's Friday, which means you 0:00:19.200 --> 0:00:22.880 know what time it is. It's time for the b 0:00:23.040 --> 0:00:26.880 a qa A the b a qa? What to say? 0:00:27.080 --> 0:00:30.880 The v a qa with manday, the v a qa 0:00:31.480 --> 0:00:36.960 the ba qaa? What's up? B a fam? If you 0:00:37.000 --> 0:00:41.320 couldn't tell, I am not in my usual playroom slash office. 0:00:42.280 --> 0:00:45.240 Mommy has her own space this week. I'm feeling very fancy, 0:00:45.440 --> 0:00:48.720 very cute. I'm actually in Houston. I don't know when 0:00:48.800 --> 0:00:51.040 this show is going to air, but I'm here for Afrotech, 0:00:51.159 --> 0:00:54.640 so very excited. I haven't been to afro Tech. I 0:00:54.760 --> 0:00:57.200 was trying to figure this out. Have I been to Afrotech? 0:00:57.280 --> 0:00:59.320 Have I not been to afro Tech? If I have 0:00:59.520 --> 0:01:02.600 been to Protech. It has been many years, but I 0:01:02.720 --> 0:01:06.080 have known Morgan Devon, the founder of lavity, for over 0:01:06.160 --> 0:01:09.640 a decade or known of her. I actually interviewed her 0:01:09.720 --> 0:01:11.640 for a story when I was at Yahoo Finance a 0:01:11.680 --> 0:01:15.000 gajillion years ago. But anyway, it's a great little full 0:01:15.040 --> 0:01:19.640 circle moment. And if you can't tell by my Airbnb, 0:01:20.120 --> 0:01:22.120 I'm trying really hard to hide it, but I am. 0:01:22.200 --> 0:01:25.600 Actually you guys can see it on YouTube if I 0:01:25.760 --> 0:01:30.080 pan the camera just the slightest amount. Wait for it, 0:01:31.000 --> 0:01:48.080 wait for it. Listen, listen, listen, listen, Linda. Some things 0:01:48.200 --> 0:01:51.200 you know, some air and some airbnb hosts just don't. 0:01:51.320 --> 0:01:56.320 They don't photograph the entire place. They they just photographed 0:01:56.360 --> 0:02:01.800 the three the three walls that or I guess, most 0:02:01.840 --> 0:02:06.600 appealing to the average viewer on the Internet. And sometimes 0:02:06.680 --> 0:02:08.359 you just got to kick a gamble on what that 0:02:08.480 --> 0:02:13.639 fourth wall is gonna hold. And I gambled, y'all, And 0:02:13.760 --> 0:02:18.440 some may say I won, and about what how much 0:02:18.520 --> 0:02:21.640 did we lose? By? Forty six percent of us may 0:02:21.760 --> 0:02:26.040 say that I lost. It doesn't matter. I'm here, it's fine, 0:02:26.400 --> 0:02:30.760 I'm safe, and we're gonna do b AQA. So let's 0:02:30.760 --> 0:02:33.120 get into our first question. Oh wait, wait, wait, God, 0:02:33.160 --> 0:02:36.720 without Tiffany here, I like, I forget our disclaimer all 0:02:36.760 --> 0:02:38.919 the time. I'm gonna get my ass sued on myself, 0:02:40.160 --> 0:02:42.040 but at least I remember this time. Be a fan. 0:02:42.120 --> 0:02:45.880 Please don't sue me. Okay, please, No, this is b 0:02:46.080 --> 0:02:49.600 a qa. We have I have God, this is so 0:02:49.720 --> 0:02:55.239 awkward when I say we instead of I. Man, this 0:02:55.400 --> 0:02:58.000 is b a QA, And I am not sure a 0:02:58.080 --> 0:03:00.840 financial planner. I'm not your career coach. I am not 0:03:01.000 --> 0:03:03.959 your investment advisor. I am just some lady on the 0:03:04.040 --> 0:03:07.519 internet that, for some reason is so blessed to have 0:03:08.040 --> 0:03:11.679 this platform. So take this for funzies, get your salt 0:03:11.720 --> 0:03:16.240 shakers out, shake them on up, and let's go. Our 0:03:16.280 --> 0:03:19.239 first question comes from a listener who wants to remain anonymous, 0:03:19.320 --> 0:03:21.680 so I'm just going to call her Carrie. Carrie says, 0:03:21.960 --> 0:03:24.560 I am thirty eight and I recently found out I'm pregnant. 0:03:24.960 --> 0:03:27.400 I'm living in Washington, DC with my husband. We make 0:03:27.440 --> 0:03:30.760 about three hundred thousand dollars per year. We have six 0:03:30.840 --> 0:03:34.160 months of emergency savings and own a few rental properties. 0:03:34.240 --> 0:03:38.880 We don't actually use that income. Okay, Carrie, come through. However, 0:03:39.480 --> 0:03:42.960 I do not have any maternity leave at my job. 0:03:43.240 --> 0:03:47.200 And there's the other. There's the foot dropping. My question 0:03:47.400 --> 0:03:50.680 is what is your advice on how I should prepare 0:03:50.760 --> 0:03:53.640 financially for baby? How much should I set aside for 0:03:53.720 --> 0:03:56.440 my three months maternity leave while I don't have any income? 0:03:57.120 --> 0:04:03.560 Is there anything else that we should consider financially? Thank you? Okay, Stacey. Wait, 0:04:03.720 --> 0:04:06.120 that's not the name I gave you, Carrie. Sorry, I 0:04:06.480 --> 0:04:09.920 forgot my own fake names. Carrie, Carrie, Carrie. Okay, So, 0:04:10.240 --> 0:04:13.360 having just done this myself, I'm gonna take a guess 0:04:13.440 --> 0:04:16.960 here and say that you probably work for yourself because 0:04:17.160 --> 0:04:20.800 even you know, well, I'm just gonna say you work 0:04:20.839 --> 0:04:23.640 for yourself. If you do work for an employer, they 0:04:23.680 --> 0:04:27.640 are at least mandated to offer twelve weeks of leave, 0:04:28.080 --> 0:04:32.000 just not paid. So maybe you are getting that twelve 0:04:32.040 --> 0:04:34.640 weeks of leave, but you've got to pay your own way. 0:04:36.000 --> 0:04:40.680 So regardless of the reason, that is tough. But I 0:04:41.320 --> 0:04:44.560 fully identify with it because I've of course had my 0:04:44.800 --> 0:04:48.560 son a little over a year ago, my second baby, 0:04:49.120 --> 0:04:51.520 and at the time I was an entrepreneur, so it 0:04:51.640 --> 0:04:55.080 was my first time bankrolling my own maternity leave, and 0:04:55.839 --> 0:04:59.080 ah man, it's way more stressful because you just don't 0:04:59.120 --> 0:05:03.600 have to calculate the finances as much into having a 0:05:03.720 --> 0:05:05.919 baby when you, of course are working for an employer 0:05:05.960 --> 0:05:07.160 and you're like, well, I'm just going to get my 0:05:07.240 --> 0:05:12.200 same paycheck, you know, or close to it. So the 0:05:12.240 --> 0:05:16.839 first challenge is to understand what your monthly your monthly 0:05:16.920 --> 0:05:18.920 expenses are going to be and how much of that 0:05:19.120 --> 0:05:22.160 needs to be contributed from you. So it sounds like 0:05:22.279 --> 0:05:24.880 you and your husbands have a healthy savings account, you're 0:05:24.920 --> 0:05:27.560 going to need at least three months of that savings 0:05:27.680 --> 0:05:32.200 right to cover your essentials over the next few months. 0:05:32.720 --> 0:05:35.719 But I would also take a look at your insurance policy. 0:05:36.240 --> 0:05:40.520 Make sure that you've got really good benefits, family benefits, 0:05:41.000 --> 0:05:44.600 especially for those post natal care visits that you're going 0:05:44.680 --> 0:05:48.080 to have baby well visits now because of Obamacare, Thank 0:05:48.160 --> 0:05:52.440 the Lord, protected at all costs. There are really generally 0:05:52.560 --> 0:05:58.640 good benefits for baby and moms. Let's see. But the 0:05:58.760 --> 0:06:01.559 early expenses of having a baby is not the baby 0:06:01.640 --> 0:06:04.599 stuff like for at least in my experience, the early 0:06:04.720 --> 0:06:10.120 expenses is how much of the smart, fiscally responsible things 0:06:10.160 --> 0:06:13.400 that you would do when you're not going on zero 0:06:13.600 --> 0:06:17.160 hours of sleep, when your partner is not also going 0:06:17.240 --> 0:06:20.919 on zero hours of sleep. You guys have the benefit. 0:06:20.960 --> 0:06:23.080 It sounds like you this is your first baby, so 0:06:23.240 --> 0:06:25.719 you don't also have another little one to chase around, 0:06:25.760 --> 0:06:30.880 which can elevate the exhaustion and stress to a higher degree. 0:06:31.400 --> 0:06:33.919 But still you're not going to be your best version 0:06:33.960 --> 0:06:36.320 of yourself. I mean, you're going to be this brand new, 0:06:36.480 --> 0:06:40.720 incredible mother, which is of course an amazing version of yourself. 0:06:40.800 --> 0:06:43.280 But in terms of like the same choices that you 0:06:43.320 --> 0:06:46.640 would have made pre baby. You'll find out on your own, 0:06:46.760 --> 0:06:48.720 but they tend to change. We all think we know 0:06:48.920 --> 0:06:50.840 everything and then you have a baby and it's like, 0:06:50.960 --> 0:06:53.960 you know what I really would like to order? I 0:06:54.000 --> 0:06:57.480 don't know, Taco Bell at ten thirty in the evening, 0:06:57.560 --> 0:06:59.840 even though it's like thirty dollars with fees going to 0:06:59.880 --> 0:07:03.640 be to Tacos, Like, we just make these choices, right, 0:07:04.720 --> 0:07:07.320 So I would leave whatever room and the budget you 0:07:07.400 --> 0:07:10.960 have right now for like groceries, you know, the kind 0:07:11.000 --> 0:07:13.640 of like even the types of groceries that you're buying, 0:07:14.400 --> 0:07:18.240 just factor in more delivery. You can also go ahead 0:07:18.240 --> 0:07:20.920 and ask friends and family instead of baby gifts, you know, 0:07:22.000 --> 0:07:26.200 give you gift cards to Uber Eats or door Dash 0:07:26.360 --> 0:07:31.040 or any of those services. Another thing to consider, not 0:07:31.200 --> 0:07:34.840 even like, especially if you're an entrepreneur, is that three 0:07:34.960 --> 0:07:39.360 months is not enough for like a proper give. It's 0:07:39.400 --> 0:07:41.520 not just about bonding with the baby. Three months is 0:07:41.640 --> 0:07:45.360 just simply not enough for us as women to get 0:07:46.080 --> 0:07:49.520 back to our base level. It's hard to under it's 0:07:49.560 --> 0:07:53.160 hard to understate the massive amounts of changes your body 0:07:53.960 --> 0:07:56.880 is going through to create this human life, and then 0:07:56.960 --> 0:07:59.920 when that human life leaves your body and goes out 0:08:00.040 --> 0:08:02.760 into the world, your body has to recover. It is 0:08:02.840 --> 0:08:05.560 a trauma, Okay, it is a beautiful trauma, and we 0:08:05.760 --> 0:08:09.080 love it, right, we love it. However, you are going 0:08:09.120 --> 0:08:10.800 to need lots of time to recrup rate. And I 0:08:10.960 --> 0:08:13.200 just don't I don't just mean physically, although that is 0:08:13.360 --> 0:08:18.000 true if it's your first baby, you're still relatively young, 0:08:18.200 --> 0:08:23.320 like you might bounce back quote unquote faster, but the 0:08:23.480 --> 0:08:28.280 mental toll, the psychological toll, trying to juggle, even if 0:08:28.280 --> 0:08:29.840 you don't run your own business, but just trying to 0:08:29.880 --> 0:08:35.160 juggle a nine to five with motherhood. Childcare expenses are wild. 0:08:35.400 --> 0:08:37.640 You live in Washington, d C. So I know that. 0:08:37.760 --> 0:08:41.240 You know that, So I hope you have a childcare plan. 0:08:42.559 --> 0:08:44.920 So I would say, whatever you think you need for 0:08:45.000 --> 0:08:48.360 three months of income, I would just do fifty percent more. 0:08:48.600 --> 0:08:51.439 So if that is fifteen thousand dollars, then make it 0:08:51.480 --> 0:08:54.439 twenty two five hundred. And that for me, is just 0:08:54.520 --> 0:08:57.400 giving you extra wiggle room for the what if. It's 0:08:57.520 --> 0:09:02.480 also giving you some wiggle room for what if you 0:09:02.600 --> 0:09:05.720 don't want to get back at it after just three months? 0:09:07.080 --> 0:09:10.560 What if you want more flexibility. What if you decide 0:09:10.640 --> 0:09:12.400 you're not ready to send the kid to daycare or 0:09:12.400 --> 0:09:16.480 whatever childcare you have planned. I mean to be honest, 0:09:17.280 --> 0:09:19.520 in an ideal world, as a new mom, I would 0:09:19.920 --> 0:09:22.760 this may sound insane, but have a year's worth of 0:09:22.840 --> 0:09:29.400 income banked. It's completely unrealistic for so many parents out there. 0:09:29.520 --> 0:09:32.520 I get it. But in an ideal world, and you 0:09:32.720 --> 0:09:35.200 are a woman of means, I see what you're doing. 0:09:35.280 --> 0:09:38.040 You have this great income, you guys are saving, You've 0:09:38.040 --> 0:09:40.520 got your rental property income that you haven't been touching. 0:09:41.679 --> 0:09:44.160 If at least you know you've got it there, you 0:09:44.360 --> 0:09:48.560 have some security and safety when it comes to making 0:09:48.600 --> 0:09:52.760 the best choices for you where you're at psychologically, and 0:09:52.840 --> 0:09:55.520 then also for your baby and spending time with them. 0:09:55.600 --> 0:09:59.160 And you know myself, I think I've talked about it 0:09:59.200 --> 0:10:02.520 on the show. How I prepared financially for my three 0:10:02.559 --> 0:10:05.439 months of leave. I set aside three months three and 0:10:05.480 --> 0:10:09.240 a half months basically of income. However, it wasn't even 0:10:09.320 --> 0:10:12.280 the baby that caused some issues, but I had a 0:10:12.360 --> 0:10:17.360 lot of health crises in my family and was doing 0:10:17.400 --> 0:10:24.079 a lot more traveling, and also underestimated the mental toll 0:10:24.880 --> 0:10:30.439 of that postpartum period, combined with having another child to 0:10:30.559 --> 0:10:33.400 look after who I of course, you know, love deeply 0:10:34.720 --> 0:10:39.880 combined with try and write a book, combined with trying 0:10:39.920 --> 0:10:47.439 to run a business, combined with family drama. And I 0:10:49.280 --> 0:10:51.599 just wasn't able to produce at the level that I 0:10:51.720 --> 0:10:56.800 had anticipated. So I say all that to say, more 0:10:57.000 --> 0:11:00.280 is more, Okay, So if you have more, I would 0:11:00.280 --> 0:11:03.560 be setting aside at least enough to cover you while 0:11:03.600 --> 0:11:06.280 you're gone. Oh and this is the other thing I 0:11:06.360 --> 0:11:08.640 forgot to say, but if you're someone who's running your 0:11:08.640 --> 0:11:12.719 own business, I would double I know that again it 0:11:12.800 --> 0:11:16.120 sounds a little aggressive, but getting back to work after 0:11:16.200 --> 0:11:19.240 three months off for an entrepreneur some depending on what 0:11:19.360 --> 0:11:21.880 your business is like. It's not just like turning on 0:11:21.960 --> 0:11:23.800 a switch and all of a sudden money may start 0:11:23.880 --> 0:11:26.440 coming back in. You may need to get back out there, 0:11:26.480 --> 0:11:30.440 start warming up clients and running sales funnels or whatever 0:11:30.440 --> 0:11:33.120 it is that you're selling, and you know, getting back 0:11:33.120 --> 0:11:35.160 out there to get to where and you may not 0:11:35.240 --> 0:11:39.079 be working full time, So be real with yourself in 0:11:39.200 --> 0:11:41.000 terms of how long it will take you to ramp 0:11:41.040 --> 0:11:44.400 back up to earning what you need minimum to support 0:11:44.440 --> 0:11:47.520 your lifestyle. And then you may decide, Okay, I want 0:11:47.520 --> 0:11:51.960 to have a little bit more set aside. Okay, all right, 0:11:52.120 --> 0:11:55.040 I think that's all I got, Carrie. I wish you 0:11:55.280 --> 0:11:59.679 so much luck and enjoy, enjoy and enjoy. There's nothing 0:11:59.800 --> 0:12:03.319 like there's nothing like there's first few months as a mama, 0:12:03.480 --> 0:12:06.839 and it just it gets different. I mean, I will 0:12:06.880 --> 0:12:09.360 say it gets better in a lot of ways. Less challenge. 0:12:09.360 --> 0:12:13.520 I mean, it's always challenging, but I mean it's never 0:12:13.640 --> 0:12:14.959 going to be the way it is when they're just 0:12:15.080 --> 0:12:17.640 a little bean and you can just they just lay 0:12:17.679 --> 0:12:19.520 in your chest like a little loaf of warm bread 0:12:19.559 --> 0:12:21.640 and it's just like the best feeling. And I hope 0:12:21.679 --> 0:12:24.360 that you have a healthy delivery. I hope that you 0:12:24.480 --> 0:12:27.880 are well cared for, be you know, get that husband 0:12:28.000 --> 0:12:30.200 advocating for you, and make sure that the doctors are 0:12:30.280 --> 0:12:33.559 listening to you and paying attention. Unfortunately, in this country, 0:12:33.720 --> 0:12:37.000 being a black woman in labor is a risk factor, 0:12:37.720 --> 0:12:40.719 and I just wish, I wish the most for you 0:12:40.960 --> 0:12:43.760 and that little baby and your growing family. And thank 0:12:43.800 --> 0:12:46.320 you so much for sending in a question. All Right, 0:12:46.400 --> 0:12:49.000 I will be right back with one more question. Stay tuned, 0:12:49.040 --> 0:12:56.120 ba fam. All Right, VAFAM. I am back and I've 0:12:56.120 --> 0:12:59.600 got a question from email brand a Vision podcast at 0:12:59.640 --> 0:13:03.000 gmail if you want to get your answer your questions answered. 0:13:04.120 --> 0:13:06.959 This question came from Crystal, who says, Mandy, thank you 0:13:07.040 --> 0:13:09.480 for the episode Not America. To me. It helped me 0:13:09.559 --> 0:13:13.280 with my ongoing anxiety since November fifth. You're welcome, Crystal 0:13:14.000 --> 0:13:16.240 helped me with my anxiety to being able to come 0:13:16.280 --> 0:13:18.079 here and just pour out my heart to y'all and 0:13:18.160 --> 0:13:19.559 let you know what I was feeling in the moment. 0:13:20.559 --> 0:13:22.760 Crystal says, sometimes I feel like so many of us 0:13:22.840 --> 0:13:24.680 have our heads in the sand about what's to come. 0:13:24.800 --> 0:13:27.120 It will not be like twenty sixteen. It will be 0:13:27.240 --> 0:13:29.480 so much worse. For the sake of my and my 0:13:29.559 --> 0:13:33.439 family's sanity, I really want to leave this country. You're 0:13:33.480 --> 0:13:36.480 not alone, Crystal, so many people have been feeling the same. 0:13:37.120 --> 0:13:39.880 Can you guys do an episode explaining what could happen 0:13:39.960 --> 0:13:42.640 with our money and investments. I remember what my great 0:13:42.679 --> 0:13:45.880 grandmother said about life during the depression. It wasn't a 0:13:46.000 --> 0:13:49.360 depression for black folks. She said, we were used to 0:13:49.480 --> 0:13:52.880 not having anything. Part of that not having was also 0:13:53.040 --> 0:13:55.520 not having money in banks and stocks because we weren't 0:13:55.559 --> 0:13:58.880 allowed to during that time. However we do now. Many 0:13:58.960 --> 0:14:04.480 of us have our lives tied up in iras, mutual funds, banks, 0:14:04.520 --> 0:14:07.760 and stocks. If those things were to crash or something similar, 0:14:09.600 --> 0:14:12.319 how do we ever recover in a system that is 0:14:12.360 --> 0:14:15.199 against us? What do we do? Also? I can't help 0:14:15.240 --> 0:14:17.559 but think about the Handmaid's Tale and how women weren't 0:14:17.559 --> 0:14:19.800 able to access their money in banks. Can you guys 0:14:19.840 --> 0:14:22.200 help with any guidance? Thanks for all you do, Okay, 0:14:22.280 --> 0:14:31.200 Crystal Baby? What I love about this email is that 0:14:32.240 --> 0:14:34.400 our email inbox. You know what I'm going to give you, guys, 0:14:34.520 --> 0:14:37.120 free rein because sometimes we need a place to deposit 0:14:37.240 --> 0:14:40.760 all of our worst fears when our partners are sick 0:14:40.800 --> 0:14:44.320 of hearing this doom scroll and dooms you know, ID 0:14:44.480 --> 0:14:47.360 eight And that's really what anxiety is about. It's about 0:14:47.800 --> 0:14:52.120 anticipating an outcome that we can't really predict and often 0:14:52.200 --> 0:14:55.640 can't control. But I think it's useful sometimes to just 0:14:55.840 --> 0:14:58.880 purge all of the what ifs. Okay, But then I 0:14:58.960 --> 0:15:02.720 need you to just leave them over there because it's 0:15:02.800 --> 0:15:04.880 not going to serve you, Crystal. And like I know, 0:15:05.120 --> 0:15:07.480 so many of us are feeling the same thing. And 0:15:07.560 --> 0:15:09.280 when you wrote this email that was only a couple 0:15:09.360 --> 0:15:12.280 of days from when I'm recording my answer. And I 0:15:12.360 --> 0:15:15.280 can feel the ache, I can feel the desperation, I 0:15:15.320 --> 0:15:18.600 can feel the fear really behind what you're talking about here, 0:15:18.680 --> 0:15:22.560 the handsmade tale Handmaid's Tale reference, like those memes are 0:15:22.600 --> 0:15:28.760 going crazy. They have been ever since, you know, twenty sixteen, 0:15:28.800 --> 0:15:35.080 maybe even before. I can also feel like you're focusing 0:15:35.200 --> 0:15:38.200 or trying to focus on something that you actually can control, 0:15:38.240 --> 0:15:41.360 which is your finances to a certain extent, right And 0:15:41.560 --> 0:15:43.320 I think the best thing I can offer you right 0:15:43.360 --> 0:15:50.200 now is a reminder of the safety the one am 0:15:50.240 --> 0:15:52.800 I looking for the guardrails that are in place so 0:15:52.960 --> 0:16:00.680 that your investments and your savings and your earnings arecatively safe, 0:16:01.000 --> 0:16:03.440 you know, depending on what happens in the economy. So 0:16:03.600 --> 0:16:07.480 let me just start with the banks. So I can't 0:16:07.520 --> 0:16:10.240 imagine any of you guys are saving your money anywhere 0:16:10.280 --> 0:16:14.880 besides an FDIC insured bank account. If you are saving 0:16:14.920 --> 0:16:18.840 your money anywhere except for if FDIC insured bank account, 0:16:19.040 --> 0:16:23.160 listen up right now. With FDIC insurance, your money is 0:16:23.240 --> 0:16:26.560 federally protected up to two hundred and fifty thousand dollars 0:16:26.760 --> 0:16:30.360 per individual per account. Okay, So let's say you and 0:16:30.440 --> 0:16:33.240 your partner have you each have a separate bank account 0:16:33.640 --> 0:16:36.800 you're at, you know, at a institution like you both 0:16:36.840 --> 0:16:39.520 get that two hundred and fifty thousand dollars worth of coverage. 0:16:40.120 --> 0:16:41.960 I'm going to post a link just to remind y'all 0:16:42.040 --> 0:16:44.480 of FDIC insurance how it works, how to make sure 0:16:44.480 --> 0:16:47.800 your bank is FDIC insured. But that should give some 0:16:47.960 --> 0:16:50.680 peace of mind now it is federally insured and at 0:16:50.680 --> 0:16:53.360 a time when crystal for sure you ain't trust in 0:16:53.440 --> 0:16:57.040 this government. I will note that the cap on that 0:16:57.360 --> 0:17:02.960 federal deposit insurance that ount has risen under democratically elected 0:17:03.080 --> 0:17:06.320 or democrat. They've all been democratic. What am I trying 0:17:06.320 --> 0:17:10.040 to say? Democratic presidents of Democrats. I think it was 0:17:10.280 --> 0:17:12.840 Obama who pushed it to two hundred and fifty max. 0:17:12.880 --> 0:17:16.200 And that's where it's been. So is there a chance 0:17:16.320 --> 0:17:20.719 that the Department of Treasury under a Trump reign may 0:17:20.880 --> 0:17:25.680 lower that? I would say so, I don't. I would 0:17:25.720 --> 0:17:31.639 hope not, because all those Litley economy voters who voted 0:17:31.680 --> 0:17:33.680 for him, they did it for the economy right. And 0:17:34.640 --> 0:17:40.920 FDIC insurance was specifically introduced to prevent another bank crisis, 0:17:41.520 --> 0:17:45.240 and it absolutely came in handy during the two thousand 0:17:45.240 --> 0:17:46.960 and eight crisis. I think it was at that time 0:17:47.080 --> 0:17:51.399 that the insurance level was raised under Obama to the 0:17:51.480 --> 0:17:55.960 two fifty, so you have that. So your investment should 0:17:55.960 --> 0:17:59.800 be covered or likely are covered under Security Investment Protection cover, 0:18:00.520 --> 0:18:03.600 which is going to protect any funds that are held 0:18:03.640 --> 0:18:07.600 within a brokerage that suddenly fails. And what I want 0:18:07.640 --> 0:18:11.320 to distinguish here is that no investing always comes with risk. 0:18:11.440 --> 0:18:14.520 And the reason they say that is because even SIPC 0:18:14.840 --> 0:18:18.040 coverage does not protect you from losses that you might 0:18:18.160 --> 0:18:21.560 incur from swings in the market or downturns in the market. 0:18:22.119 --> 0:18:26.400 Downturns in the market, however, come with the territory of investing, 0:18:26.760 --> 0:18:29.639 and that's why having an investing strategy is so so 0:18:29.840 --> 0:18:32.159 important and it's why here at Brand Ambition, we are 0:18:32.240 --> 0:18:35.639 big on y'all finding a financial advisor who can at 0:18:35.760 --> 0:18:38.600 least even if it's a one time sit down, based 0:18:38.640 --> 0:18:42.400 on your time horizon, based on your tolerance for risk, 0:18:42.800 --> 0:18:45.360 based on any goals that you have, short, medium, long 0:18:45.480 --> 0:18:48.840 term goals. They will help you develop an investing strategy 0:18:49.280 --> 0:18:51.520 where you're going to make sure that you're not over 0:18:51.680 --> 0:18:55.440 leveraging yourself. You're not getting in a situation where market's 0:18:55.520 --> 0:18:57.840 downturned and all of a sudden your shirtless and have 0:18:58.000 --> 0:19:01.720 nowhere to live now. I highly if you're someone who 0:19:01.760 --> 0:19:03.560 has an IRA for a one k, you know you're 0:19:03.600 --> 0:19:06.040 just investing, maybe in a wroth on the side or whatever. 0:19:06.119 --> 0:19:09.159 It's very unlikely that even with a market downturn, you 0:19:09.160 --> 0:19:11.240 would have all your money tied up in that account. 0:19:12.440 --> 0:19:15.320 But a financial advisor can make sure. It can make 0:19:15.440 --> 0:19:18.320 sure again put in place some guardrails that you can 0:19:18.400 --> 0:19:20.960 control that will at least give you peace of mind 0:19:21.040 --> 0:19:26.200 that Okay, let's say you're really worried about the stock market, 0:19:26.320 --> 0:19:28.919 so you want to You're really not tolerant of any losses. 0:19:29.000 --> 0:19:31.080 They will keep you up at night. You will go 0:19:31.200 --> 0:19:34.400 into an anxiety spiral. You can't cope, so you want 0:19:34.440 --> 0:19:36.280 to have more of your money in cash. This is 0:19:36.280 --> 0:19:39.080 also a strategy that the older you get, the more 0:19:40.040 --> 0:19:42.040 the more it makes sense to have less money tied 0:19:42.119 --> 0:19:46.800 up in the market and more money in cash reserves. 0:19:47.200 --> 0:19:50.760 CDs like those types of deposit accounts that have that 0:19:50.880 --> 0:19:53.480 fall under that FDIC insurance guideline and are going to 0:19:53.520 --> 0:19:58.680 be solid. So anyhow, the point is you'll develop a 0:19:58.720 --> 0:20:01.240 strategy that is in line with your risk tolerance and 0:20:02.400 --> 0:20:04.720 how much time you want to be investing for. But 0:20:04.840 --> 0:20:07.240 let's if you're doing it on your own, then I 0:20:07.240 --> 0:20:09.639 would double check your investments and just make sure that 0:20:10.000 --> 0:20:15.080 you're not too over indexed in stocks. The goal rule 0:20:15.160 --> 0:20:17.560 of thumb is to take the number one hundred and 0:20:17.600 --> 0:20:19.560 subtract your age from it, and that will give you 0:20:19.680 --> 0:20:23.560 your stock to bonds ratio. So I'm thirty seven, so 0:20:24.440 --> 0:20:26.960 ostensibly that means I should have sixty three percent of 0:20:27.040 --> 0:20:31.920 my portfolio in stocks and thirty seven percent in bonds. 0:20:32.320 --> 0:20:35.960 And I personally am invested in some growth funds, like 0:20:36.080 --> 0:20:39.760 some passive passive investment funds that are automatically shifting my 0:20:39.840 --> 0:20:43.640 investments over time. And then I do have some accounts 0:20:43.680 --> 0:20:46.359 that are just held in a Vanguard brokerage account. And 0:20:46.640 --> 0:20:49.280 I'm not gonna lie. I have a pretty high tolerance 0:20:49.359 --> 0:20:51.800 for risk, especially because I'm on the I'm younger, I 0:20:51.920 --> 0:20:57.160 have what thirty something years of investing before traditional retirement age, 0:20:57.240 --> 0:21:02.800 and so I am completely invested in stock index funds ETFs. 0:21:03.000 --> 0:21:11.920 Things like that. About the market in general, no matter 0:21:12.000 --> 0:21:15.560 what president has been in power. The research is clear, 0:21:15.640 --> 0:21:18.600 the data is clear that the stock market tends to 0:21:18.720 --> 0:21:22.840 bounce back and on the whole even with different even 0:21:22.920 --> 0:21:28.320 with wars and different presidents at different presidencies and you know, 0:21:28.480 --> 0:21:30.600 all kinds of natural disasters and all of that. The 0:21:30.720 --> 0:21:33.920 market does have these times when it goes down, but 0:21:34.000 --> 0:21:36.240 it tends to go back up, down and up, down 0:21:36.320 --> 0:21:38.560 and up, down and up. And it's really hard unless 0:21:38.560 --> 0:21:41.760 it's like, if you're looking at the stock for X, 0:21:41.920 --> 0:21:45.640 for example, I'm sure that has gone up and down 0:21:45.920 --> 0:21:49.280 since Elon Musk has infiltrated the Republican Party and the 0:21:49.359 --> 0:21:53.240 White House. Now you'll also see, you know, the stock 0:21:53.320 --> 0:21:56.040 market I think surged after Trump came into office. And 0:21:56.400 --> 0:22:00.399 like it's no question that Wall Street businesses, business owners, 0:22:00.440 --> 0:22:03.440 big billionaires, big money, they wanted Trump to win because 0:22:03.520 --> 0:22:06.720 what they're doing is they anticipate he's going to make 0:22:07.320 --> 0:22:09.840 taxes lower for them, that he's going to make it 0:22:09.920 --> 0:22:14.720 easier for them to remove regulations and barriers that stop 0:22:14.800 --> 0:22:17.000 them from doing the business things that they want to do, 0:22:17.320 --> 0:22:22.680 like Elon Musk building his rockets in random desert land 0:22:22.800 --> 0:22:26.080 and national wildlife reserves in Texas and not wanting to 0:22:26.160 --> 0:22:29.600 have to deal with regulations that say you can't knock 0:22:29.680 --> 0:22:33.800 down that poor bird nest and other you know, So 0:22:34.160 --> 0:22:36.639 a base of Jeff Bezos, for example, like this is 0:22:36.800 --> 0:22:40.240 just an example. He may say, like, oh, under Biden's 0:22:40.400 --> 0:22:44.440 Biden's administration, we paid this crazy tax on cardboard because 0:22:44.480 --> 0:22:46.440 of how much card were we put into the world. 0:22:46.840 --> 0:22:51.560 So under Trump, maybe like Trump will reduce that cardboard tax. 0:22:52.240 --> 0:22:55.240 That's not a real example, it's completely made up. And 0:22:55.440 --> 0:22:59.679 so maybe the Amazon stock will surge because they anticipate 0:23:00.040 --> 0:23:03.040 that Trump is going to make things juicier, make the 0:23:03.720 --> 0:23:07.200 profits for Amazon higher, and so they're reacting to that. 0:23:08.119 --> 0:23:11.080 Markets are very emotionally reactive because they are not just 0:23:11.200 --> 0:23:14.800 driven by robots. They're driven by human beings and our behavior, 0:23:15.480 --> 0:23:17.880 and that can go up and down and swing and swing. 0:23:18.080 --> 0:23:20.120 So I want you to worry a little bit less 0:23:20.160 --> 0:23:24.480 about how the market's reacting in these small windows of time, 0:23:24.560 --> 0:23:27.280 these pockets of time where a big event has happened, 0:23:27.359 --> 0:23:31.760 like an election, like I said, a natural disaster, any 0:23:31.880 --> 0:23:36.440 kind of like regulatory changes that may happen at the 0:23:36.520 --> 0:23:41.960 federal level that can impact businesses or impact goods and 0:23:42.040 --> 0:23:44.840 things like that, Like I want that to sway your 0:23:44.880 --> 0:23:48.760 investing strategy less because you have to assume shit's always 0:23:48.840 --> 0:23:50.560 going to be hit in the fan at some point 0:23:50.640 --> 0:23:53.760 in America, right like, it's just how the world works. 0:23:54.000 --> 0:23:57.200 Shit gon't hit the fan, and that will impact markets 0:23:57.320 --> 0:24:00.360 in a negative way. However, you also have to think 0:24:00.400 --> 0:24:03.639 about the other reality, which is that the data. This 0:24:03.760 --> 0:24:05.639 is not just me making it up. The data shows 0:24:05.680 --> 0:24:09.280 the stock market bounces back. When we are investing, we 0:24:09.440 --> 0:24:11.560 are making a bet and we are taking the risk 0:24:11.880 --> 0:24:14.720 that on the long term we're going to come out ahead. Okay, 0:24:15.240 --> 0:24:17.040