WEBVTT - 5 Steps to Make Your Child a Millionaire (Start Now!) 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 --> 0:01:00.000 Sponsored by the United States Department of Homeland Security. 0:01:01.520 --> 0:01:05.120 Yeah, yeah, we're back, Happy Thursday, Happy Thursday. 0:01:05.400 --> 0:01:11.720 Yes, Yes, welcome back to the educational series. This is 0:01:13.120 --> 0:01:15.319 another one. I might even sure where number we're at. 0:01:16.319 --> 0:01:19.200 I probably would throw around six, but I could be wrong. 0:01:20.120 --> 0:01:22.400 We've covered a lot, we covered how to buy a call, 0:01:22.480 --> 0:01:25.320 we covered things to know before buying a home. We 0:01:25.480 --> 0:01:31.759 covered you know, process of buying a home, credit covered taxes, 0:01:31.920 --> 0:01:36.800 we've covered artificial intelligence, so stocks. So this is one 0:01:37.080 --> 0:01:41.200 that's always vitally important, you know, for everybody, but especially 0:01:41.240 --> 0:01:44.720 for people that have a family, have children, thinking about 0:01:44.720 --> 0:01:51.400 having children, have grandchildren, niece, nephew, god children, whoever, you know, anytime. 0:01:50.960 --> 0:01:52.760 You want to plan for young people's future. 0:01:53.520 --> 0:01:56.520 The term generational wealth is something that gets thrown around 0:01:56.560 --> 0:01:59.240 a lot, but what does that really mean? 0:01:59.320 --> 0:01:59.480 Right? 0:01:59.520 --> 0:02:02.320 It means to create wealth for generations to come. So 0:02:03.160 --> 0:02:04.880 today we're going to do the first step. We're going 0:02:04.920 --> 0:02:08.600 to teach you how to make your child a millionaire. 0:02:09.240 --> 0:02:11.079 I think we've already taught you how to make yourself 0:02:11.120 --> 0:02:14.360 a millionaire if you follow the principles. But we're going 0:02:14.400 --> 0:02:17.799 to teach you how to make your child a millionaire. 0:02:17.840 --> 0:02:20.800 And we get five steps. This is gonna be five steps. 0:02:20.840 --> 0:02:23.440 It's not the only five steps with five five steps 0:02:23.440 --> 0:02:30.040 that you can utilize in your life to achieve that goal. 0:02:30.639 --> 0:02:32.919 Yeah, yeah, it's one of these things. And it takes 0:02:32.919 --> 0:02:34.239 me back when we were looking at the notes for 0:02:34.520 --> 0:02:37.320 the episode. It took me back to being twenty four 0:02:37.400 --> 0:02:40.360 years old, twenty five years old, sitting in your office 0:02:40.680 --> 0:02:42.760 and you actually breaking this down for me at that 0:02:42.800 --> 0:02:45.679 age and at the time I had no kids, wasn't 0:02:45.760 --> 0:02:48.880 engaged and have a wife obviously, and part of me, 0:02:48.919 --> 0:02:50.440 like a small piece of me, was like, yo, why 0:02:50.440 --> 0:02:52.840 do I need to do this? But being educated on 0:02:52.919 --> 0:02:55.399 it very quickly, I was like, oh, this makes perfect sense. 0:02:55.480 --> 0:02:55.600 Right. 0:02:55.639 --> 0:02:58.440 I always say my favorite line is if you plan 0:02:58.520 --> 0:03:01.960 for now for the future, right, like, think about your trajectory, right, 0:03:01.960 --> 0:03:05.040 it's that sheet line plan for the future, because you're 0:03:05.040 --> 0:03:06.960 gonna be older a lot longer than you're gonna be younger, Like, 0:03:07.400 --> 0:03:09.720 here are the strategies now while you're young. So this 0:03:09.880 --> 0:03:12.080 is like a selfless actor if you're an adult, but 0:03:12.080 --> 0:03:15.000 it's a necessary act. So hopefully you got your pens 0:03:15.000 --> 0:03:17.320 in your pass ready because it's going to be an educational. 0:03:16.919 --> 0:03:21.040 Session, yes, sir, So before we start, definitely have to 0:03:21.080 --> 0:03:26.760 extend our condolences to EYO alumnist alumni. Absolute actually a 0:03:26.840 --> 0:03:29.880 brilliant person when it comes to the world of business 0:03:30.240 --> 0:03:36.080 and ALTHO philanthropy and just a legend junior Bridgeman. We 0:03:36.200 --> 0:03:39.320 covered his story actually at the beginning stages of early leision, 0:03:39.880 --> 0:03:43.080 somebody that was an NBA player and then you know, 0:03:43.280 --> 0:03:48.520 became a number one franchise owner for Wendy's and Chili's 0:03:48.520 --> 0:03:52.840 in the world, and then purchased a Coca Cola bottling 0:03:53.040 --> 0:03:56.080 plan and became you know, a billionaire. Over the course 0:03:56.120 --> 0:04:00.440 of time, owned Ebony magazine, owned Jet magazine of other 0:04:00.520 --> 0:04:05.400 different things. So he passed away a few days ago. 0:04:06.480 --> 0:04:08.960 We had him at Investvest a few years ago. He 0:04:09.040 --> 0:04:16.240 spoke on stage with Rich Paul. Great conversation. So definitely 0:04:16.240 --> 0:04:21.480 want to extend our condolences to his family, to you know, 0:04:21.520 --> 0:04:25.480 the Louisville community, the Milwaukee community, the East Chicago community. 0:04:25.520 --> 0:04:28.760 It was part of a few different communities, but all 0:04:28.760 --> 0:04:33.160 the lives that he's impacted, and hopefully, you know, people 0:04:33.200 --> 0:04:36.120 can learn even more about his story now that he's 0:04:36.120 --> 0:04:39.000 passed away and use it for education and information and 0:04:39.680 --> 0:04:44.560 motivation inspiration. So you know, to honor to be able 0:04:44.600 --> 0:04:46.360 to have him shared a stage with him, ask some 0:04:46.520 --> 0:04:49.600 questions somebody that we we you know, we highlighted early, 0:04:49.720 --> 0:04:53.320 so that was a full circle moment. So definitely before 0:04:53.320 --> 0:04:57.320 we started the show, wanted to extend our condolences to 0:04:57.560 --> 0:04:59.800 Junior Bridgeman's family and friends. 0:05:00.160 --> 0:05:02.160 Opportunity to actually meet his family. 0:05:02.839 --> 0:05:05.760 Beautiful family, beautiful man, and I'm happy we got to 0:05:05.760 --> 0:05:08.000 give him as flowers at the time that you know, 0:05:08.040 --> 0:05:10.039 when we were covering the early stories, when it was 0:05:10.080 --> 0:05:12.680 just you and me, uh, and people were like, oh, 0:05:12.720 --> 0:05:14.840 we didn't understand who he was. People started to get 0:05:14.839 --> 0:05:18.480 familiar with him, and then obviously at Investmvest, our community 0:05:18.480 --> 0:05:20.560 for sure got a definite feeling of what he's done 0:05:20.600 --> 0:05:22.280 inside of business, but who he is as a man. 0:05:22.360 --> 0:05:25.200 And even you know, up into his untimely passing, he 0:05:25.320 --> 0:05:27.880 was still giving back, right, he was still doing philanthropy, 0:05:28.120 --> 0:05:31.040 was actually at an event. So it's untimely, it's it's 0:05:31.040 --> 0:05:33.680 a tragedy. But I'm glad we got to give him 0:05:33.680 --> 0:05:36.279 as flowers. And hopefully, like you said, people will now 0:05:36.279 --> 0:05:38.760 look into his business acumen and the legacy that he's 0:05:38.839 --> 0:05:42.200 left and hopefully emulated that to a certain extent. So 0:05:42.480 --> 0:05:45.120 againdosis to the family, and I thought, some prayers are 0:05:45.120 --> 0:05:45.400 with you. 0:05:45.800 --> 0:05:50.760 Okay, So now let's get into it. Okay, First, you know, 0:05:50.800 --> 0:05:54.240 why is it important to do this right? Well, I 0:05:54.240 --> 0:05:56.160 think the number one thing is it all comes down 0:05:56.160 --> 0:05:59.159 to math, and there's a thing called compound and interest, 0:05:59.800 --> 0:06:01.960 and I think Warren Buffet at the compound and just 0:06:01.960 --> 0:06:03.920 one of the windows of the world. And you know, 0:06:04.520 --> 0:06:08.680 the earlier you start to invest, the better chance you 0:06:08.880 --> 0:06:12.960 have of achieving wealth. That's just as easy to explain 0:06:13.000 --> 0:06:19.120 as possible. If you start to invest at ten, you 0:06:19.160 --> 0:06:23.720 will achieve wealth quicker than somebody that invests at forty. 0:06:24.520 --> 0:06:27.320 If you invest at twenty, you'll achieve wealth quicker than 0:06:27.320 --> 0:06:29.880 somebody that invests in fifty. So the good thing with 0:06:29.960 --> 0:06:32.120 children is that they have time on their hands, right, 0:06:32.400 --> 0:06:36.839 So as a parent, even small amounts of relatively small 0:06:36.880 --> 0:06:42.400 amounts of money can lead to huge nest eggs. We'll 0:06:42.400 --> 0:06:47.239 talk about some examples, but that's the probably the biggest 0:06:47.279 --> 0:06:49.680 thing as far as why it's important to start thinking 0:06:49.720 --> 0:06:51.719 about how you invest for your child and set your 0:06:51.800 --> 0:06:56.440 child up is because time is on the side of 0:06:56.480 --> 0:06:58.200 the child, so you want to take advantage of that. 0:06:58.279 --> 0:07:04.840 Another thing is the preparation aspect of generational wealth. As 0:07:04.839 --> 0:07:08.440 we said before, if that's the goal, then the earlier 0:07:08.520 --> 0:07:12.600 that you prepare, the easier it is for you, because 0:07:12.640 --> 0:07:15.640 the less money that you actually have to put out 0:07:16.160 --> 0:07:18.600 that goals in the other way. So one way for 0:07:18.640 --> 0:07:21.760 the compounding interest is that you start early and you 0:07:21.800 --> 0:07:24.120 have a lot of money later. The other side of 0:07:24.160 --> 0:07:27.440 that coin is that the earlier you start, the less 0:07:27.520 --> 0:07:31.720 money you actually have to put away to have that 0:07:31.800 --> 0:07:34.320 million dollars or the two million dollars or whatever you want. 0:07:34.440 --> 0:07:37.440 So it all comes down in time. It comes down 0:07:37.520 --> 0:07:41.320 to being a good steward and just really the responsibility 0:07:41.320 --> 0:07:44.760 of any any parent, I think is to not only 0:07:44.840 --> 0:07:48.520 better their life, but better that their children's lives for sure, 0:07:48.560 --> 0:07:51.240 and then even their children's children's right, you really want 0:07:51.280 --> 0:07:54.040 to create legacy for yourself. So these are things that 0:07:54.120 --> 0:07:56.560 you can actually, you know, start today, and you don't 0:07:56.560 --> 0:07:58.040 have to be a millionaire to start. We're going to 0:07:58.080 --> 0:08:00.920 talk about different strategies where you can start with minimal 0:08:01.200 --> 0:08:04.560 amount of money but still achieve that long term goal. 0:08:04.680 --> 0:08:06.800 Yeah, and I think it's important right on top of 0:08:06.840 --> 0:08:09.520 the savings part from obviously from the adult to the child. 0:08:09.600 --> 0:08:12.920 But it's the educational process and there's no age to it, right, 0:08:12.920 --> 0:08:15.120 Like we always talk about financial education in the sense like, 0:08:15.160 --> 0:08:15.920 oh when should I start? 0:08:15.920 --> 0:08:16.720 Where should I start? 0:08:17.040 --> 0:08:19.680 We should start now and the educational process is great 0:08:19.680 --> 0:08:21.800 if parents don't know, because this is a great place 0:08:21.840 --> 0:08:24.560 for you to know, but it's also a great place 0:08:24.600 --> 0:08:26.040 for you to learn with your children. 0:08:26.080 --> 0:08:27.480 And so we're talking about investing. 0:08:27.760 --> 0:08:30.840 What does that look like when you're getting a brokerasure account, right, 0:08:30.880 --> 0:08:32.679 you're learning that, but you're teaching your child at the 0:08:32.679 --> 0:08:34.960 same age and at a certain point when your child 0:08:34.960 --> 0:08:37.640 has those lessons at ten, eleven, twelve, by the time 0:08:37.640 --> 0:08:40.160 the eighteen and be able to own their own brokerasure 0:08:40.160 --> 0:08:43.200 account and have their own investment accounts with a brokerage, 0:08:43.320 --> 0:08:46.120 they're familiar with it. And that familiarity only can breed 0:08:46.160 --> 0:08:49.280 success in the future. And so yes, from a financial standpoint, 0:08:49.280 --> 0:08:51.840 but also from the mindset standpoint of this is not 0:08:51.920 --> 0:08:53.440 something that is foreign to me. And we see that 0:08:53.440 --> 0:08:55.160 in a lot of communities and we're starting to see 0:08:55.160 --> 0:08:56.720 a shifting ars, but we need to see it more. 0:08:57.280 --> 0:08:58.839 So, Yeah, let's get let's get to it. 0:08:58.960 --> 0:08:59.720 Let's get it going. 0:09:00.320 --> 0:09:05.080 Okay, So before we start, one quick announcement, Ian's done 0:09:05.160 --> 0:09:10.400 laps Historic Stock Club, you know, universally known as one 0:09:10.400 --> 0:09:13.840 of the best platforms to actually know when to buy 0:09:13.920 --> 0:09:16.640 the stock and actually gives you the prices or when 0:09:16.640 --> 0:09:17.960 the buy the stock. You know, we're going through some 0:09:17.960 --> 0:09:20.640 stock market turmoil right now, so when to buy stock 0:09:20.679 --> 0:09:23.880 is extremely important. And it also comes with a sniper 0:09:23.880 --> 0:09:25.840 program for three years, which actually gives you a setup 0:09:25.880 --> 0:09:29.000 to be a futures trader. Fifty percent sale that's been 0:09:29.080 --> 0:09:33.520 running since market Mondays on Monday, and that will expire tomorrow, 0:09:33.760 --> 0:09:35.480 so you have one day left for that, and that 0:09:35.600 --> 0:09:39.120 is that ianinvest dot Com. Go to ian invest dot 0:09:39.160 --> 0:09:41.480 com to take advantage of that one day left. 0:09:42.040 --> 0:09:45.760 But then fifty percent off sale for stock club. 0:09:45.880 --> 0:09:47.320 Shout to everybody that took advantage of it. 0:09:47.320 --> 0:09:48.960 Thus for I've seen some people already in the chat, 0:09:49.000 --> 0:09:50.440 like yo, man, I got that n video at one 0:09:50.480 --> 0:09:52.959 o five, ran up to one to twelve and I 0:09:53.000 --> 0:09:55.160 made it a fifty percent on my call. So shout 0:09:55.280 --> 0:09:57.640 to y'all man taking advantage and executing them right away 0:09:57.880 --> 0:09:58.240 right away. 0:09:58.240 --> 0:09:59.000 Don't waste any. 0:09:58.880 --> 0:10:02.560 Time, Okay. So let's start with the first and easiest way. 0:10:03.120 --> 0:10:07.320 To make sure your child is a millionaire. And by 0:10:07.360 --> 0:10:10.640 the way, this is a millionaire, not like necessarily tomorrow, 0:10:11.160 --> 0:10:13.000 but at some point in their life they will be 0:10:13.040 --> 0:10:13.600 a million. 0:10:13.400 --> 0:10:15.120 I think we got to get out of that mindset, right, 0:10:15.200 --> 0:10:19.199 like success takes time, wealth takes time. Generational wealth obviously 0:10:19.200 --> 0:10:22.520 takes time, but you have to start somewhere, but it's 0:10:22.520 --> 0:10:24.760 not going to happen tomorrow. I think people get that exception, 0:10:24.840 --> 0:10:27.000 like we're so used to saying all right, let's get 0:10:27.080 --> 0:10:30.200 rich quick. No, let's get wealthy and stay wealthy, funds 0:10:30.240 --> 0:10:31.200 saying amount of time. 0:10:31.559 --> 0:10:36.000 So the first, the first thing and the easiest pathway 0:10:36.520 --> 0:10:41.360 is life insurance. Think that that's something that everybody should have, 0:10:41.480 --> 0:10:44.240 whether you're a parent or not, but definitely every parent 0:10:44.240 --> 0:10:46.880 should have for sure. So by now you probably heard 0:10:47.080 --> 0:10:49.040 life insurance. So I don't think you need to actually 0:10:49.040 --> 0:10:51.280 have an explanation of what life insurance is. Right, it's 0:10:51.280 --> 0:10:54.880 pretty self explaratory. It's insurance on your life. And everybody's 0:10:54.880 --> 0:10:57.080 going to pass away at some point. So when you 0:10:57.160 --> 0:11:02.040 do pass away, your beneficiaries will get money when you die. Right, 0:11:02.080 --> 0:11:04.800 you buy a policy, you pay a premium, your beneficiaries 0:11:04.840 --> 0:11:07.400 get money when you die. That's pretty self explanatory, pretty 0:11:07.400 --> 0:11:12.040 easy to understand. But there are some things that you 0:11:12.080 --> 0:11:14.120 need to know about life insurance. So there's different types 0:11:14.160 --> 0:11:17.240 of life insurance. This is important, Okay, So we're going 0:11:17.320 --> 0:11:24.000 to talk about three types of insurance, term insurance, universal 0:11:24.040 --> 0:11:28.800 life insurance, and whole life insurance. They all have different 0:11:29.120 --> 0:11:30.520 mind you, this is a video that we're going to 0:11:30.559 --> 0:11:33.720 cover five different topics, so it's not just an insurance video. 0:11:33.800 --> 0:11:36.880 So we're not going to go for forty minutes into insurance, 0:11:36.880 --> 0:11:39.440 even though we could. But we have other videos on 0:11:39.480 --> 0:11:41.760 our YouTube channel about insurance. But this is just the 0:11:41.880 --> 0:11:45.320 overview to kind of get you on track. So, okay, 0:11:46.679 --> 0:11:49.680 insurance is vitally important obviously when you're creating generational wealth, 0:11:49.720 --> 0:11:53.120 because that is a guarantee that your family or your child, 0:11:53.160 --> 0:11:57.680 whoever you provide beneficiary for will get upon your death right. 0:11:57.800 --> 0:12:00.840 So term insurance is the easy way to go about it. 0:12:02.200 --> 0:12:05.800 As far as premium is concerned, right, it's the lowest premium. 0:12:06.080 --> 0:12:08.880 It lasts a turn. So if you have a twenty 0:12:08.960 --> 0:12:11.160 year term policy for a million dollars and you're thirty 0:12:11.160 --> 0:12:14.240 five years old, and that might be thirty dollars a month, right, 0:12:14.240 --> 0:12:16.120 if you're healthy, that might be thirty dollars a month. 0:12:16.240 --> 0:12:17.240 So you. 0:12:18.640 --> 0:12:21.959 The benefit of that is that you're able to get 0:12:22.000 --> 0:12:25.959 a larger policy for a low premium. Right, because a 0:12:26.000 --> 0:12:28.400 lot of times. What stoles people from getting large policies 0:12:28.440 --> 0:12:32.360 is the premium, So that's the benefit. Now you might say, okay, well, 0:12:32.400 --> 0:12:34.400 why do I need a million dollar life insurance policy 0:12:35.240 --> 0:12:37.280 if I make one hundred thousand dollars a year? 0:12:37.600 --> 0:12:38.600 That was really my question. 0:12:39.080 --> 0:12:40.760 So yeah, rule of. 0:12:40.720 --> 0:12:42.680 Thumb is that you should get at least ten times 0:12:42.760 --> 0:12:47.600 your salary, some say twenty because let's think about this rationally. 0:12:48.000 --> 0:12:50.680 If you make one hundred thousand dollars a year, right 0:12:50.800 --> 0:12:57.600 after taxes, that's probably around seventy So most people income 0:12:58.080 --> 0:13:00.520 usually increases over the course of time, but let's say 0:13:00.520 --> 0:13:02.480 it doesn't. Let's say it just stays at seventy thousand. 0:13:02.960 --> 0:13:05.960 So now if you have one hundred thousand dollar policy, 0:13:06.000 --> 0:13:10.800 then your seventy thousand dollars contribution to your family will 0:13:10.840 --> 0:13:15.120 be done in a year and three months, right, and 0:13:15.160 --> 0:13:18.679 they still have to live for another eighteen years. 0:13:18.360 --> 0:13:20.720 Of if you have a baby, or ten years if 0:13:20.720 --> 0:13:21.240 you have a tenure. 0:13:21.320 --> 0:13:25.679 Right, So you want to make sure that your income 0:13:25.760 --> 0:13:27.880 is provided for at least ten years. So if you 0:13:27.880 --> 0:13:30.320 have a million dollar policy and you make ten one 0:13:30.360 --> 0:13:34.600 hundred thousand dollars a year, then that million dollar policy 0:13:35.160 --> 0:13:38.720 now invested into the stock market, you could probably pull 0:13:38.960 --> 0:13:41.959 around five percent safely seven percent if you want to 0:13:41.960 --> 0:13:43.839 be a little bit more aggressive. But now you can 0:13:43.960 --> 0:13:47.240 you can really pull almost almost close to the amount 0:13:47.280 --> 0:13:51.440 of money that you made as yearly, right from just 0:13:51.480 --> 0:13:53.840 the growth from the stock market. So that's how you 0:13:53.880 --> 0:13:55.240 come up with that number. You want to have a 0:13:55.320 --> 0:13:59.360 larger number death benefit as opposed to just the amount 0:13:59.400 --> 0:14:02.080 of money that you actually are making per year. 0:14:02.360 --> 0:14:03.680 And this is one of those I mean literally, that 0:14:03.760 --> 0:14:05.840 was a conversation that we had we sat at the table. 0:14:06.280 --> 0:14:07.800 I'm not even thinking of it in terms. 0:14:07.840 --> 0:14:10.560 I think most people in that age that that twenty 0:14:10.640 --> 0:14:12.880 three to twenty four to twenty five, they're thinking, like 0:14:12.920 --> 0:14:14.920 why should I be thinking about when I'm going to die? 0:14:15.080 --> 0:14:15.240 Right? 0:14:15.280 --> 0:14:17.160 And it's one of those things that I remember the 0:14:17.160 --> 0:14:19.560 answer you gave me. You're like, well, everybody's going to die, 0:14:19.640 --> 0:14:20.800 so you should start thinking about it. 0:14:21.040 --> 0:14:23.120 And I was like that was harsh. 0:14:22.760 --> 0:14:25.120 But yeah, you were right, right, Like I don't have 0:14:25.160 --> 0:14:28.280 a family now, right, I don't have any responsibilities other 0:14:28.320 --> 0:14:28.920 than myself. 0:14:29.160 --> 0:14:30.120 This is the perfect time. 0:14:30.320 --> 0:14:32.760 Number One, I was in the best shape of my life, 0:14:32.760 --> 0:14:34.600 which is important. I'm sure youre going to talk about that. Right, 0:14:34.920 --> 0:14:37.320 I was healthy, I didn't smoke, I didn't drink. All 0:14:37.400 --> 0:14:39.440 these things are positive for people who are trying to 0:14:39.440 --> 0:14:42.320 give me policies. And when I realized it, right, that 0:14:42.360 --> 0:14:45.080 million dollar number sounds like a lot, but the way 0:14:45.120 --> 0:14:46.880 it was, like, Yo, if you do a term like 0:14:47.000 --> 0:14:49.120 it could be low cost. It could cost you twenty 0:14:49.200 --> 0:14:51.120 nine or thirty nine or forty nine dollars a month, 0:14:51.160 --> 0:14:53.560 which I don't think most people understand. 0:14:53.640 --> 0:14:53.760 Right. 0:14:53.760 --> 0:14:55.760 They think, if it's a million dollars, I can't afford 0:14:55.800 --> 0:14:58.440 to have a million dollar policy, But when you break 0:14:58.440 --> 0:15:00.680 it down, it's like, wait, twenty nine dollars among that's 0:15:00.880 --> 0:15:03.480 my phone bill is triple that, right, Like these are 0:15:03.520 --> 0:15:05.840 the things that that mindset and the education that we 0:15:05.880 --> 0:15:07.120 don't have and we kind of miss. 0:15:07.400 --> 0:15:10.040 And this is how sometimes wealth is passed without us 0:15:10.120 --> 0:15:10.480 even know. 0:15:10.720 --> 0:15:13.720 Or they think that they don't need a million dollar policy. Right, 0:15:13.720 --> 0:15:16.040 It's like I'm not that much. And this is a 0:15:16.080 --> 0:15:18.240 common misconception as far as like to say, like I 0:15:18.240 --> 0:15:20.960 don't need that much or I don't want to leave 0:15:21.040 --> 0:15:25.760 too much money. You can't be over insured, So there 0:15:26.120 --> 0:15:28.760 are guidelines and how much insurance that you can actually get. 0:15:29.320 --> 0:15:32.320 So if you make fifty thousand dollars a year, you 0:15:32.360 --> 0:15:35.280 cannot get one hundred million dollar life insurance policy, right, 0:15:35.280 --> 0:15:37.240 you can't get a fifty million dollar life insurance policy. 0:15:37.320 --> 0:15:39.520 So being at this guidelines. 0:15:39.000 --> 0:15:42.640 That lets you that lets you know that you should 0:15:42.640 --> 0:15:45.840 get to the max of what's allowable because there is 0:15:45.920 --> 0:15:48.120 no such thing as being over and shurt or having 0:15:48.120 --> 0:15:50.360 too much insurance. The insurance company is not even going 0:15:50.440 --> 0:15:53.400 to ensure you for things that don't make sense financially, 0:15:53.400 --> 0:15:54.840 Like if you make fifty thousand dollars a year, you 0:15:55.000 --> 0:15:56.880 you don't need a hundred million dollars policy. So that 0:15:56.960 --> 0:16:00.160 lets you know that they in their mind already has 0:16:00.280 --> 0:16:02.760 a number of what you actually need for your family. 0:16:02.840 --> 0:16:05.160 That's a great point, So you're not you shouldn't go 0:16:05.240 --> 0:16:07.600 against something that's already set for you as far as 0:16:07.600 --> 0:16:10.160 the insurance company, like, don't under insure yourself. 0:16:11.440 --> 0:16:13.040 And that's a great point. 0:16:13.080 --> 0:16:15.320 The other part of it is as you start to 0:16:15.360 --> 0:16:18.560 accumulate more money, then that should change. Right, So like 0:16:18.960 --> 0:16:22.080 if I started out making sixty thousand, then I made 0:16:22.080 --> 0:16:24.080 one hundred. Now by the time I'm finished teaching, I'm 0:16:24.080 --> 0:16:26.840 making one hundred and fifty. Yeah, that needs to multiply 0:16:26.920 --> 0:16:30.000 by ten. So my policy probably needs to be updated 0:16:30.040 --> 0:16:31.960 to a point where it now matches the money that 0:16:32.000 --> 0:16:34.280 I was making because my family is relying on that. 0:16:34.800 --> 0:16:35.080 Yep. 0:16:35.400 --> 0:16:37.520 So the pros and comers with term insurance. The pros 0:16:37.600 --> 0:16:41.480 or that is low costing premium. That's the biggest pro. 0:16:42.640 --> 0:16:45.720 The con The biggest knock against term insurance is that 0:16:45.840 --> 0:16:47.640 it's for a term and expire. So if you get 0:16:47.720 --> 0:16:50.000 twenty year term insurance and you're twenty five years old, 0:16:50.360 --> 0:16:53.960 it's going to expire expire when you're forty five. Now, 0:16:54.000 --> 0:16:56.200 most people that are healthy when they're twenty five are 0:16:56.240 --> 0:16:58.400 still going to be alive when you're forty five. So 0:16:58.640 --> 0:17:01.120 in that scenario, you would have paid for twenty years. 0:17:01.200 --> 0:17:04.040 And some people will say, well I have nothing to 0:17:04.080 --> 0:17:05.480 show for it, like it's just a waste of money. 0:17:05.520 --> 0:17:08.280 But in any that that's true with any insurance. If 0:17:08.280 --> 0:17:10.960 you have a car for twenty years and you never 0:17:10.960 --> 0:17:12.840 get into a car accident, you don't look at it 0:17:12.880 --> 0:17:14.680 like while I paid car insurance for twenty years, I 0:17:14.720 --> 0:17:16.440 wasted it. No, you have to have the insurance just 0:17:16.480 --> 0:17:20.040 in case something happens, or fire insurance or flood insurance. 0:17:20.119 --> 0:17:22.560 If you think about it, every insurance that you have. 0:17:22.680 --> 0:17:24.320 You can't get a phone without insurance. 0:17:24.440 --> 0:17:27.120 Yeah, the point of it is to not ever use it. 0:17:27.800 --> 0:17:29.400 So life insurance is the only thing that we look 0:17:29.440 --> 0:17:31.920 at where it's like I have to use it. Right, 0:17:32.440 --> 0:17:35.040 every other insurance, you just have the insurance and you 0:17:35.119 --> 0:17:37.359 hope that you never have to use it, and if 0:17:37.400 --> 0:17:39.080 you do have to use it is there for you. 0:17:39.200 --> 0:17:40.600 That's how That's how you should look at the life 0:17:40.600 --> 0:17:45.639 insurance the same way. But it will expire. And now 0:17:45.840 --> 0:17:48.320 at forty five, if you want to get new insurance, 0:17:48.359 --> 0:17:49.960 you're going to be you're going to pay a higher 0:17:50.000 --> 0:17:53.160 premium because you're twenty years older, and then you might 0:17:53.160 --> 0:17:54.440 not even be able to get the insurance if you 0:17:54.520 --> 0:17:56.720 have some medical issues or you know, something like that. 0:17:56.760 --> 0:18:00.679 So that that's some level of negative that can go 0:18:00.760 --> 0:18:05.160 along with the term insurance. But the alternative de term 0:18:05.200 --> 0:18:09.720 insurance is what we call permanent insurance. That's insurance that 0:18:09.800 --> 0:18:12.760 lasts fever. So there's two types of permanent insurance for 0:18:12.800 --> 0:18:16.400 the most part, Universal and whole life. As I said, 0:18:16.400 --> 0:18:18.639 there's different types of Universal, but we won't go to 0:18:19.119 --> 0:18:21.560 in depth because it's not a life insurance class. But 0:18:21.800 --> 0:18:24.240 you just it's important for you to know whole life 0:18:24.280 --> 0:18:27.879 insurance is the oldest when it comes to permanent insurance, 0:18:28.480 --> 0:18:32.199 it's the most conservative. It's guaranteed, how the money. So 0:18:32.240 --> 0:18:34.399 there's money that grows inside of a policy, which is 0:18:34.440 --> 0:18:38.680 called cash value. This is important to understand because that's 0:18:38.720 --> 0:18:42.119 a double edged sword. You have a death benefit, but 0:18:42.200 --> 0:18:45.800 you as you pay a premium, portion of that premium actually, 0:18:45.960 --> 0:18:48.480 over the course of time grows into cash that you 0:18:48.480 --> 0:18:52.920 can actually borrow from. So you might have a million 0:18:52.960 --> 0:18:56.520 dollar whole life insurance policy and in twenty years you 0:18:56.680 --> 0:19:01.960 have two hundred thousand dollars of value that's grown inside 0:19:01.960 --> 0:19:04.959 of that policy. You can borrow from that if you choose, 0:19:05.359 --> 0:19:07.600 and that's money that you can actually utilize to go 0:19:07.720 --> 0:19:09.800 for your child as well. You can pay that college tuition, 0:19:09.880 --> 0:19:12.000 or you can do anything. You can put it down 0:19:12.000 --> 0:19:13.760 payment for a house, you can start a business. You know, 0:19:13.960 --> 0:19:16.480 if you need money, then you can take money from 0:19:16.480 --> 0:19:20.440 a life insurance policy while you're still living. The whole 0:19:20.440 --> 0:19:25.320 life insurance as far as premium, is the richest, so 0:19:25.359 --> 0:19:27.720 that's going to be the highest premium on the chart, right. 0:19:28.119 --> 0:19:30.440 But once again, it's guaranteed, So how the money grows, 0:19:30.440 --> 0:19:34.040 it's through dividends that the company play pays and through 0:19:34.080 --> 0:19:36.959 set interest rate. So over the course of time you're 0:19:36.960 --> 0:19:39.600 probably earn around five percent. If you look at it 0:19:39.720 --> 0:19:41.520 from a long term perspective, your boy to earn like 0:19:41.560 --> 0:19:44.200 five percent interest on the money as it's grown inside 0:19:44.200 --> 0:19:48.640