Speaker 1: Hey, hey, hey, we're back. We're black.
Speaker 2: Wait, actually it's this is the b a q a
Speaker 2: A the b a q a which to say the
Speaker 2: b a q a with tiffin a the b a
Speaker 2: q a eight no man day the b a.
Speaker 3: Q a just may Okay, Hey, I am back in
Speaker 3: this too. Manday's not here today, but that's okay.
Speaker 1: I got you. We're gonna do a little b a
Speaker 1: q A.
Speaker 3: That's when I or myself or and Manday and I
Speaker 3: answered you were questions about business, personal finance career to
Speaker 3: the best of our black and brown ability that you're
Speaker 3: gonna take with the smallest green of salt because you
Speaker 3: do not pay us too. So we're not your attorney,
Speaker 3: we're not your doctor, we're not your your mama. But
Speaker 3: we are your favorite qtie pie internet cousins answering financial questions.
Speaker 1: Okay, okay, so let's start out with some questions.
Speaker 3: If you have questions, you can go to brannibisionpodcast dot com.
Speaker 3: There's like a contact us button or whatever they're You
Speaker 3: can ask a question there. You can slide into the
Speaker 3: dms on Instagram, Brianna Vision Podcast, Twitter, THEBA Podcast, Brannibisionpodcasts
Speaker 3: at gmail dot com. You can email us, you know,
Speaker 3: ask your questions. All right, so let's start with dum.
Speaker 1: Okay, let me see who's this.
Speaker 3: Oh hold up, it looks like we have two dudes
Speaker 3: in the STU today.
Speaker 1: Okay, so we're gonna start with Rob.
Speaker 3: Hey Rob, Rob says, Hey, ladies, I'm a fan of
Speaker 3: you both. By the way, my sister who by way
Speaker 3: of my sister who encouraged me to listen to your podcast.
Speaker 3: Shout out to Robin or Okay, see what your parents
Speaker 3: are there, Robin, Robin.
Speaker 1: I love it.
Speaker 3: I thoroughly enjoyed the topics, and I have learned a
Speaker 3: lot so far.
Speaker 1: We love that.
Speaker 3: I had a serious question pertaining to debt management. I'm
Speaker 3: currently twenty eight and I work for the financial industry
Speaker 3: and I'm making good money.
Speaker 1: However, I have.
Speaker 3: A ton of debt due to poor decisions and being taken.
Speaker 1: Advantage of my family.
Speaker 3: Oh wow, Okay, this debt has been lingering for years,
Speaker 3: and recently my wages were garnished. Okay, I can't afford
Speaker 3: that at the moment, in addition to repayment of my
Speaker 3: student loans beginning in October, because y'all know, know the
Speaker 3: goopid told the president we got to stop paying okay,
Speaker 3: the student loans that he paused, those payments that he paused.
Speaker 3: She says, I'm actively seeking an attorney to explore options
Speaker 3: to stop garnishment and how to manage to eliminate other
Speaker 3: existing debts. I saw something pertaining to bankruptcy, and it
Speaker 3: looks like it may be extremely helpful, but I'm horrified
Speaker 3: at how it could potentially affect my credit, especially when
Speaker 3: I'm working in the industry that pays attention to that
Speaker 3: when it comes to promoting. Do you guys have any
Speaker 3: knowledge about bankruptcies or any other alternatives to debt management
Speaker 3: when it's gotten pretty bad?
Speaker 1: Thanks? Rob, Well, Rob.
Speaker 3: First, I want to say I'm so sorry that you've been,
Speaker 3: you know, taking advantage of by some family, you know.
Speaker 3: Good on you for acknowledging that, you know, sometimes you
Speaker 3: make mistakes and we're here as a result of that,
Speaker 3: and those things happen because Shah I have been there,
Speaker 3: done that, literally.
Speaker 1: Wrote the book about it.
Speaker 3: Okay, So I just want to acknowledge that first and foremost,
Speaker 3: and I would say.
Speaker 1: I want you to be very clear when you file
Speaker 1: for bankruptcy.
Speaker 3: Is not easy, guy, is not as easy as it
Speaker 3: used to be because when you because there are like
Speaker 3: two ways that you could file for bankruptcy, Chapter seven
Speaker 3: and chapter thirteen. So bankruptcy as we know it gives
Speaker 3: you the opportunity to pay down a portion of your
Speaker 3: debts over time or have some of them eliminated entirely.
Speaker 1: Right. So, either way, when you.
Speaker 3: Declare bankruptcy, it grants what's called an automatic stay, which
Speaker 3: basically means a block on your debts to keep creditors
Speaker 3: from trying to collect. They can't deduct money from your
Speaker 3: bank account, they can't go your wages, they can't go
Speaker 3: after other assets potentially, and so you you'll have time
Speaker 3: to work with the courts and your credits to determine
Speaker 3: what the next steps look like. That's what happens when
Speaker 3: you when you declare bankruptcy, right, and so the two
Speaker 3: main types of like I said, individual are Chapter seven
Speaker 3: in chapter thirteen. So Chapter seven bankruptcy is what they
Speaker 3: often like when you think about following for bankruptcy, they
Speaker 3: sometimes will call it liquidation bankruptcy because for in order
Speaker 3: to chile for chapter seven, you're gonna likely need to
Speaker 3: sell off some of your assets so that when you
Speaker 3: can pay back some of the people. So let's just
Speaker 3: say you had a house and a car, and you
Speaker 3: had jewelry and you had you would literally they would
Speaker 3: leave you with something because they know you have to live.
Speaker 3: But they would say, basically.
Speaker 1: You belong to me.
Speaker 3: Now I'm the captain, now you know. So Chapter seven
Speaker 3: can be very aggressive. So it depends on what state
Speaker 3: that you're in. It's going to determine like what assets,
Speaker 3: like you're retiring an account. Maybe like I said, I
Speaker 3: know I mentioned your house in your car, but some
Speaker 3: of them are exempt from liquidation depending on your state.
Speaker 3: So you would check with an attorney depending on your
Speaker 3: state to find out what you'd be allowed to keep.
Speaker 3: If you were considering chapter seven, Chapter thirteen, you don't
Speaker 3: actually need to worry about selling off and if your
Speaker 3: property instead, they're your debt would be reorganized so you
Speaker 3: can pay them off partially or in full for the
Speaker 3: next three to five years. So the thing is the
Speaker 3: benefit of chapter seven, if there is a benefit, is
Speaker 3: that if you are willing to liquidate whatever up to
Speaker 3: whatever the state allows, those debts that you owe, you
Speaker 3: no longer owe. Chapter thirteen is you're actually not you
Speaker 3: won't not owe. It will just reorganize in a way
Speaker 3: to set you up to pay off, you know, in
Speaker 3: the next three to five years.
Speaker 1: So but keep in mind if you.
Speaker 3: Don't pay, like, if you don't align with the payment plan,
Speaker 3: they can come after other stuff like if we're chapter thirteen.
Speaker 1: Okay.
Speaker 3: Now, the issue to your point, Rob, is if you
Speaker 3: your credit is going to be for the most part,
Speaker 3: severely affected if you especially chapter thirty, chapter seven, you know,
Speaker 3: and so it's going to stay on your credit report
Speaker 3: for up to ten years.
Speaker 1: And so Chapter thirteen.
Speaker 3: Although it will affect your credit like as well, it's
Speaker 3: viewed a little bit more favorably because you're still paying
Speaker 3: off at least some of your debts versus just getting
Speaker 3: them like wiped away. The bankruptcy still stays on your
Speaker 3: credit for a very long.
Speaker 1: Time, very long time.
Speaker 3: And now here is the thing. Bankruptcies are publicly filed.
Speaker 3: They're considered public record. Now doesn't mean that you know
Speaker 3: they're going to be like sending a letter to your mama.
Speaker 3: But oftentimes I think it was like I I read
Speaker 3: a statistic it's like up to twenty nine percent of
Speaker 3: employers do check your credit.
Speaker 1: And especially I'm not gonna lie to Rob.
Speaker 3: You're in the financial industry, so filing for bankruptcy because
Speaker 3: you're in the financial industry and you're very young, you
Speaker 3: didn't say how much you owed makes.
Speaker 1: Me feel a little bit new this.
Speaker 3: Because although you have a job, so it might not
Speaker 3: keep you from a job.
Speaker 1: I've actually heard people.
Speaker 3: I remember a friend of mine was working like a
Speaker 3: trucking company and couldn't get a promotion because what she
Speaker 3: did was she handled, like I guess accounts and things
Speaker 3: like that, and they felt like, if you have bad credit,
Speaker 3: you might be more likely to steal, and so she
Speaker 3: couldn't get a promotion until she got her credit score up.
Speaker 3: I had another friend who really my mentee. She just
Speaker 3: got to graduated law school and they let her know
Speaker 3: because she had an internship. Until you get your credit
Speaker 3: score up, we can't hire you as an attorney. And so,
Speaker 3: especially in your space, I cannot see how filing for
Speaker 3: bankruptcy is not going to affect your ability to climb
Speaker 3: the corporate ladder.
Speaker 1: And like I said, that's this on your credit for
Speaker 1: ten years.
Speaker 3: Rob, you young, sir, You're young, so I'm not here
Speaker 3: to tell you what to do, but I'm here to
Speaker 3: tell you what I would do, which is I follow
Speaker 3: for bankruptcy. You know, like unless I owed a million dollars,
Speaker 3: ten million dollars something crazy, then I'm like that makes sense.
Speaker 3: People be following for bankruptcy for some old ten thousand dollars.
Speaker 3: No not you know and you you know you got
Speaker 3: seven kids and you're eighty five. No, Rob, you're twenty eight.
Speaker 3: I'm sure you don't own a million or a million dollars.
Speaker 3: And so there are other alternatives to follow for bankruptcy
Speaker 3: that won't curtail your ability to make money.
Speaker 1: You want to know something some of them? Here you go.
Speaker 3: There's credit counseling right there are literally certified nonprofit credit
Speaker 3: counseling agencies that help you basically similarly due to what
Speaker 3: Chapter thirteen would do, which is helped to reorganize your
Speaker 3: dat One of my favorite is write this down, Rob,
Speaker 3: you got your pen NFCC dot org. Actually gonna be
Speaker 3: just like typeing in so I can't remember, I can't
Speaker 3: look at it. N f n FCC dorg.
Speaker 1: And they are the wh do they call themselves?
Speaker 3: They are that I believe they're the National except National
Speaker 3: Foundation for Credit Counseling and I like them because one
Speaker 3: they it's a nonprofit organization and they have partners in
Speaker 3: every state that these certified nonprofit credit counseling agencies in
Speaker 3: every state, so you can find one in your state
Speaker 3: then and from what I remember the last time, I mean,
Speaker 3: I don't know if they do now, but it would
Speaker 3: be like they used to do, like a sliding scale,
Speaker 3: like helping you anywhere from free to whatever you can afford.
Speaker 1: I don't know if that's still the case.
Speaker 3: You would have to obviously call connect with the counselor
Speaker 3: you can connect like VA. You know, you can call them,
Speaker 3: you can connect with them online. But that is my favorite.
Speaker 3: I have never heard anything bad about them. I love
Speaker 3: the NFC and I've been recommending them for like the
Speaker 3: last ten years and everybody always comes back and says
Speaker 3: thank you so much. So credit counseling is a is
Speaker 3: an alternative. Also two, the debt consolidation. That's a second alternative.
Speaker 3: So debt consolidation basically means like looking at your debt,
Speaker 3: like listing it in a way that you can kind
Speaker 3: of see all you owe, who you owe, what percentage
Speaker 3: you know, what's your interest rate, all of that, and
Speaker 3: then ask yourself. Like say, for example, you've got three
Speaker 3: or four credit cards, depending I don't know what your
Speaker 3: credit score is looking like now, but seeing if you
Speaker 3: could qualify for either a credit card or a loan
Speaker 3: that's less than the average of the interest rate. So
Speaker 3: for example, let's just say you have three credit cards.
Speaker 3: One is a ten percent interest rate, when is twenty
Speaker 3: one is fifteen? Right, And because your credit score is
Speaker 3: pretty decent, you're able to either get a credit card
Speaker 3: or to get a loan from ideally like a credit union.
Speaker 1: That says we can give you an interest rate of
Speaker 1: eight percent or whatever.
Speaker 3: So it's like, okay, that's less than what I'm paying now,
Speaker 3: and that loan you used to pay off the three
Speaker 3: or four people that you ow, oh, and you're just
Speaker 3: paying this one person now, this one credit union, you know,
Speaker 3: or sometimes people do this with roll of transferring balances
Speaker 3: to a credit card you can roll over, you know,
Speaker 3: sometimes some cards, if you have excellent credit, we'll say
Speaker 3: you pay a zero percent interest rate for like, you know,
Speaker 3: twelve months, fifteen months, and so you're literally all the
Speaker 3: money that you're paying goes directly to the card and
Speaker 3: not to any interest. But the key is you got
Speaker 3: to read the fine print because sometimes they have a
Speaker 3: three percent transfer fee, you know, and then on top
Speaker 3: of that, you want to make sure that there's no
Speaker 3: if you don't pay us back by the end of
Speaker 3: twelve months, you have to pay all the interest that
Speaker 3: we didn't that we didn't charge you.
Speaker 1: So consider that consolidation.
Speaker 3: That's getting a loan from a credit union, ideally a
Speaker 3: credit union that's going to provide you with a better
Speaker 3: interest rate. If you're not a member of a credit union,
Speaker 3: google credit union near me, you can someplace you can
Speaker 3: join today and apply today. Consider balanced transfers, you know,
Speaker 3: to like if you have multiple credit cards. So that's
Speaker 3: another alternative. And so like also to a debt management plan.
Speaker 3: So if you go to that, like I said, NFCC
Speaker 3: dot org, oftentimes they have something called the DMP, which
Speaker 3: is a repayment program that a certified credit counsel can
Speaker 3: organize for you. And so that's like, you know, that's
Speaker 3: maybe like one point, you know, instead of like the
Speaker 3: third alternative, This is an alternative that like kind of
Speaker 3: tax onto getting credit counseling, like literally they will not
Speaker 3: only oh like it's not just that they're on.
Speaker 1: Paper, say Hey, Rob, here's the way you should pay
Speaker 1: off your debt.
Speaker 3: They will reach out to your creditors for you, negotiate
Speaker 3: better repayment terms, negotiate lower interest, and then say, okay, Rob,
Speaker 3: we've done all this work.
Speaker 1: Here's how much you have to pay who and when?
Speaker 1: Does that make sense? Okay?
Speaker 3: And then like, lastly, you can do debt settlement or
Speaker 3: debt relief, you know, and so what that means. And
Speaker 3: I've done this, so I owed. I remember one time,
Speaker 3: like child, like, I dyed my hair. I did not
Speaker 3: know I was alert to a black guy. And when
Speaker 3: I say my face blew up, it was a hot
Speaker 3: air ballode. I mean my face blew up. It looked crazy.
Speaker 3: And I was broke at the time, and I was
Speaker 3: like At first, I was like, oh, it's just a
Speaker 3: little puffy, and then it just kept growing bigger and bigger,
Speaker 3: and I was like, I don't have any money to
Speaker 3: go to the doctor, to the hospital. My mom was like, so,
Speaker 3: do you want to wake up tomorrow or not? And
Speaker 3: so I went to the hospital.
Speaker 1: Child.
Speaker 3: They gave me the equivalent of a Bendadryll and a drip.
Speaker 3: I was so mad. Eight hundred dollars later, I was like, Dad,
Speaker 3: I don't have eight hundred dollars. So I just ignored them,
Speaker 3: and they were calling and calling and sending letters. I
Speaker 3: just ignored it because.
Speaker 1: I was scared. It was like maybe fifteen ten, fifteen
Speaker 1: years ago.
Speaker 3: And then my sister, who worked in the medical field,
Speaker 3: was like, girl, you can negotiate for less.
Speaker 1: You know, what do you have. I was like, I
Speaker 1: don't know.
Speaker 3: I have like three or four hundred dollars. And so
Speaker 3: I called the hospital back and was like, I don't
Speaker 3: have eight hundred dollars. I have three hundred dollars. And
Speaker 3: they were like okay. They were able to offer me
Speaker 3: a settlement for less money because I said I had
Speaker 3: this in lump some and so you can actually negotiate
Speaker 3: with your creditors and say I don't have this, but
Speaker 3: this is what I can do. The more that you
Speaker 3: can pay in a lump sum, the more likely they
Speaker 3: are to say, yes, you know, no one wants to
Speaker 3: hear I don't have ten thousand, but I can pay
Speaker 3: you two thousand over the next two years. Now they
Speaker 3: want to hear I don't have ten thousand, but I
Speaker 3: can pay you two thousand today. Does that make sense?
Speaker 3: So you can like reach out and look. Now, now
Speaker 3: that is gonna affect your credit score a little bit,
Speaker 3: but it won't not like bankruptcy. Okay, so let's recap
Speaker 3: some alternatives. Okay, credit counseling NFCC dot org. Debt consolidation.
Speaker 3: That's either be a balanced transfer credit card or a
Speaker 3: consolidation loan from like your favorite neighborhood credit union. A
Speaker 3: debt management plan. This is a not just a plan
Speaker 3: on paper, but a plan that a credit counselor will
Speaker 3: help to negotiate with your creditors on your behalf and
Speaker 3: then like on the last but not least because it's
Speaker 3: still gonna affect your credit score or negatively, but debt
Speaker 3: settlement like or you know, asking for debt relief.
Speaker 1: Kay, I hope that was helpful.
Speaker 3: Whatever, Yeah, because I know you know these things happen,
Speaker 3: and you know we're not here to beat anybody up.
Speaker 1: We're just here to offer solutions.
Speaker 3: So we're gonna take a quick break and we're gonna
Speaker 3: come back and answer the second question from another dude.
Speaker 1: Okay, it's rain, and then hallelujah, it's rain. Let me stop.
Speaker 3: Anyway, we'll be back in black in a moment, so
Speaker 3: we can pay some bills and I can answer your next.
Speaker 1: Question, and we're back and black and we are here.
Speaker 3: Like I said, you know, you know Briann abishing typically
Speaker 3: because you know me and many are two. Hey ladies,
Speaker 3: let's usual your audience. But I don't know the guys
Speaker 3: are representing today. You know, we answered Rob's question, and
Speaker 3: now we have a question from Todd. I don't know
Speaker 3: if that's your real name, but that's what you put
Speaker 3: in the email. So child, that's your business. So Todd
Speaker 3: as a listener, So let's see what Todd has to say. Hi,
Speaker 3: Tiffany and Mandy, my name is Todd. I just wanted
Speaker 3: to start off by saying I love the show. I'm
Speaker 3: also a black man who enjoys listening. Yes, Tid, we
Speaker 3: love a black man over here. Okay, I listened to
Speaker 3: the audio experience all the time, and I'm a huge fan.
Speaker 3: My question is about Whole Life insurance. I wanted to
Speaker 3: know when you had remat Sethi in the still. Okay,
Speaker 3: I see you taking on my language. He briefly touched
Speaker 3: on whole Life insurance and it sounded like he was
Speaker 3: against it. Likely he was because all of us with
Speaker 3: CeNSE R. But we'll talk, We'll continue. But he didn't
Speaker 3: finish a point he was trying to make about life insurance,
Speaker 3: so I didn't want to assume anything. I was wondering
Speaker 3: if you guys can continue that discussion, Well, probably not
Speaker 3: with Remat, but I can continue the discussion. We'd love
Speaker 3: to hear his thoughts and of course your thoughts on
Speaker 3: whole life insurance or life insurance in general, as I
Speaker 3: hear a lot of people say that it's a wealth
Speaker 3: building tool. Ooh, Chad Todd, No one made me hot
Speaker 3: up in here. So one I can almost guarantee you
Speaker 3: one hundred thousand percent that Remat was saying whole life
Speaker 3: is whole trash because and you know, I've just heard
Speaker 3: him say that, and quite honestly, us in the financial
Speaker 3: space who believe in what's fair for y'all, that's what
Speaker 3: we say. So I actually have a whole chapter in
Speaker 3: my book, Get Good with Money about life insurance. So
Speaker 3: there are two types of well, yeah, there's two basic
Speaker 3: types of life insurance.
Speaker 1: Right.
Speaker 3: There is term and term life insurance is issue for
Speaker 3: a specific number of years, like for a specific timeframe, right,
Speaker 3: and you pay a premium monthly, like, so you might
Speaker 3: pay like, I don't know, for twenty years or whatever,
Speaker 3: you know, like and then you get a payout a
Speaker 3: death benefit that's guaranteed to your beneficiaries if you died
Speaker 3: between that timeframe.
Speaker 1: That's why it's called term.
Speaker 3: But what I really want you to understand that term
Speaker 3: life insurance is like regular insurance. Meaning think about when
Speaker 3: you have insurance for your car.
Speaker 1: It is term, right.
Speaker 3: Because typically people get insurance for a car, it's annual
Speaker 3: and you've renew annually.
Speaker 1: You know, like you.
Speaker 3: Might pay monthly, but it's like if this is only
Speaker 3: good for this year, and every year they reassess and
Speaker 3: you pay right. So even though they make this big
Speaker 3: differentiator like oh, what's term? No, No, I just want
Speaker 3: you to think of every other insurance in your life
Speaker 3: health insurance, dental insurance, petitan insurance, homeowner's insurance, of car insurance.
Speaker 3: It's basically term, and the way is the same way
Speaker 3: it works with these other insurances. If something happens and
Speaker 3: you are fully paid up within the term, then a
Speaker 3: payment is paid out. The reason why people get all
Speaker 3: freaked out is because the thing that has to happen
Speaker 3: for life insurance is for you to pass away. Don't
Speaker 3: nobody want to talk about that. But here we're talking
Speaker 3: about it. But like in cars, right, Like it's like
Speaker 3: the other day. Literally, just yesterday, somebody hit my sister's car.
Speaker 3: It was parked and some kid was driving a beag
Speaker 3: out in his car. He got spooked and he hit.
Speaker 3: You know, he was honest. You know, his insurance is
Speaker 3: taking care of it. YadA, YadA, YadA. But essentially she
Speaker 3: has insurance like he has insurance. She's gonna go through
Speaker 3: his insurance. They're gonna pay because he has insurance for
Speaker 3: the year that he pays for a likely monthly or
Speaker 3: quarterly or whatever. I like to pay my insurance up
Speaker 3: for the year, but you know you have up to
Speaker 3: pay it monthly and it lasts for the year period.
Speaker 3: That's term. It is very familiar insurance. It's the way
Speaker 3: insurance works in every other area of our life. But
Speaker 3: when it comes to life insurance, these tricky little insurance
Speaker 3: companies have figured it out how to get you all
Speaker 3: freaked out by also offering what's called permanent life insurance.
Speaker 3: And so oftentimes permanent life insurance is called universal or
Speaker 3: whole life. Whole life being very this is what you mentioned.
Speaker 3: But what you're really talking about is permanent, and it's
Speaker 3: not for a year. You pay it indefinitely until you're
Speaker 3: no longer here. Now, the issue or the difference between
Speaker 3: term and whole life is that one you know, once
Speaker 3: the term of term is up unless you renew it
Speaker 3: or whatever.
Speaker 1: That's it.
Speaker 3: And people say, when I didn't die in thirty years,
Speaker 3: I just wasted my money. Which to that, I say,
Speaker 3: when you didn't get in the car insurance this year?
Speaker 3: Did you waste your money when my house didn't burn down?
Speaker 3: Did you waste your money when my dog is still alive?
Speaker 3: Did you waste your money on pet insurance when I
Speaker 3: still have my teeth? Did you waste your money on
Speaker 3: dental insurance?
Speaker 1: Like?
Speaker 3: Come on, now, you know, like that's how insurance works.
Speaker 3: It is there to protect you in case. But we
Speaker 3: don't say it wasn't worth the money because I didn't
Speaker 3: have the incident. But with life insurance, insurance companies have
Speaker 3: gotten very good, especially insurance brokers who sell it have
Speaker 3: gotten very good and making you feel bad for not dying.
Speaker 3: Oh keep back, child, So what happens if you were
Speaker 3: alive in thirty years? You don't waste your money, child?
Speaker 3: Are you raising?
Speaker 1: I want to be here in thirty years. But so
Speaker 1: they pushed his whole life.
Speaker 3: Now, the problem with whole life is that the expense
Speaker 3: is not just that much more. I want you to
Speaker 3: think about what happens when you fly. So I just
Speaker 3: came back from from Europe. I went to London Paris,
Speaker 3: and I went to the Amafi coast and I flew
Speaker 3: business class, which is first class, and I use points
Speaker 3: because anybody paying out of pocket. But when I looked
Speaker 3: at the price, if I was going to fly economy,
Speaker 3: I don't even know, Like let's just say economy, I
Speaker 3: don't know. I'm just making up to London is eight
Speaker 3: hundred dollars. Business Class to London is like, say.
Speaker 1: Like four thousand.
Speaker 3: I'm just making it up right that the difference is
Speaker 3: not like eight hundred for economy sixteen hundred for business. No, no, no, no,
Speaker 3: they make the difference astronomical.
Speaker 1: So that way like it.
Speaker 3: Because if it was just double, then everybody would just
Speaker 3: be like I just figure out how to five. Business
Speaker 3: is way more comfortable. It's similar to term and whole
Speaker 3: life that term. I'll give you an example. I am
Speaker 3: forty I'm about to be forty four this year for
Speaker 3: forty year old, healthy woman who does not smoke for
Speaker 3: a thirty year policy. Last time I checked, it was
Speaker 3: like if I wanted a thirty year term insurance plan
Speaker 3: life insurance plan.
Speaker 1: I think it was like forty bucks a month.
Speaker 3: That's how much it would cost a forty year old
Speaker 3: woman who doesn't smoke to get a thirty year plan.
Speaker 3: Forty bucks a month for a million dollar plan.
Speaker 1: Sorry for clarity.
Speaker 3: So if something happens to this forty year old woman
Speaker 3: in the next thirty years, by the time she's seven,
Speaker 3: if she is not here anymore, her family will get
Speaker 3: a million dollars. That same woman who wants to get
Speaker 3: a million dollar policy in a permanent whole life or
Speaker 3: universal or whatever those are just like the same that's
Speaker 3: calling it permanent. It's about a seven hundred and forty dollars,
Speaker 3: so it's not even comparable. So it's like, what do
Speaker 3: I get for paying an extra seven hundred dollars?
Speaker 1: A hoodache is what you get?
Speaker 3: People will say, well, you get it for life, for life.
Speaker 3: The purpose of life insurance is not so you can
Speaker 3: you can get it for life life. The purpose really
Speaker 3: of life insurance is to protect your dependence for when
Speaker 3: you can no longer be there for them financially now,
Speaker 3: So meaning.
Speaker 1: Thirty years should be enough.
Speaker 3: Because if you have a child and by the if
Speaker 3: you get life insurance for them the year that or
Speaker 3: you get life insurance for yourself the year they're born,
Speaker 3: and it's thirty years by the time they're thirty, the
Speaker 3: assumption is this child can go on and take care
Speaker 3: of themselves.
Speaker 1: Do you see what I mean?
Speaker 3: So you know, like unless you have like a special
Speaker 3: needs child that's gonna need that's gonna need looking after
Speaker 3: for life, then you can talk differently with your financial
Speaker 3: advisor about maybe whole life might be a choice. But
Speaker 3: really for most people, term is fine. And the difference
Speaker 3: that's seven hundred dollars difference. It's gonna make a difference
Speaker 3: in lifestyle, it's gonna make a difference in your ability
Speaker 3: to invest, it's gonna make a difference in your ability
Speaker 3: to purchase like a home and pay for college.
Speaker 1: That's seven hundred dollars.
Speaker 3: Them insurance ages be just giggling all the way to
Speaker 3: the bank, honey, you know, because they know that, like
Speaker 3: it's so much money in their pocket. So I actually have,
Speaker 3: like in the Bookicko of Money. So if you actually
Speaker 3: have my book Gicker of Money, I want you to
Speaker 3: go ahead on in the over and mosor mosy on
Speaker 3: over to page two forty eight in the physical book,
Speaker 3: and I have here. If an insurance broker says permanent
Speaker 3: life insurance acts as a tax deferral because you put
Speaker 3: money in and you can essentially take out a tax
Speaker 3: free loan for the amount, and what I say is
Speaker 3: child what you need to know that while that's true,
Speaker 3: it doesn't mean it's the best way for you to.
Speaker 1: Get a tax referral tax deferral.
Speaker 3: You know, make sure you're already taking advantage of like
Speaker 3: pre tax deferral accounts like your four win k on Ira.
Speaker 3: You know, a permanent life insurance policy is not the
Speaker 3: only tax planning strategy, and honestly, it's not even the best.
Speaker 1: And it's the most expensive. So you can pay seven hundred.
Speaker 3: Dollars to save what ten dollars of taxes like it
Speaker 3: doesn't make sense because they'll tell you own like it's
Speaker 3: a it's a tax defral deferral strategy. But there are
Speaker 3: other strategies that are way better and less expensive.
Speaker 1: Another one.
Speaker 3: If the insurance broker says it's building value because it
Speaker 3: has cash value, what you need to know is that
Speaker 3: there are better ways. This is the number one way
Speaker 3: they tell you it builds cast value. There are better
Speaker 3: ways to build your wealth. Do some quick math. What's
Speaker 3: the difference between what you would pay for term per
Speaker 3: year versus the permanent policy with the same death benefit
Speaker 3: right at the same pad amount.
Speaker 1: You know what would that cost you?
Speaker 3: The difference of amount, if you put that into the
Speaker 3: stock market, that would be more than the cash value.
Speaker 1: So if I put let's do let's.
Speaker 3: Do some maid, I'm about to pull up, Let me
Speaker 3: pull let me pull out my phone because you know town,
Speaker 3: because the people be getting me hot when they be
Speaker 3: talking about a whole life. Seven hundred dollars chiund times
Speaker 3: twelve months equals eight thousand, four hundred. That's the difference
Speaker 3: in that term policy I mentioned for a forty year
Speaker 3: old black woman, a forty old woman, and you know,
Speaker 3: for a term of a million dollar policy term versus
Speaker 3: whole eight thousand, set, eight thousand, four hundred dollars, that
Speaker 3: is the amount of money that that person can then
Speaker 3: put into the market, and on average, the stock market
Speaker 3: on the low end for the last thirty years has
Speaker 3: yielded seven to eight percent. Really about ten percent, but
Speaker 3: if we be keeping it real cute seven to eight percent.
Speaker 3: Do you want to know what the cash value like
Speaker 3: the rate of return on that cast value if you
Speaker 3: if you put that money that's seven hundred dollars instead
Speaker 3: of the market that on the low end yields seven
Speaker 3: percent in a whole life policy like.
Speaker 1: This is according to consumer.
Speaker 3: Reports, the average annual rate of return for a whole
Speaker 3: life guarantee cash value is one point five percent. You
Speaker 3: might as well put it in grandma's own mattress one
Speaker 3: point five percent. Banks are giving more than that. You
Speaker 3: literally can just put your money instead the set of
Speaker 3: a whole life insurance policy into a savings account. Right now,
Speaker 3: savings accounts are giving up to four percent, if not
Speaker 3: more so that whole cast value that you get who
Speaker 3: was cast value?
Speaker 1: Cats?
Speaker 2: Right?
Speaker 3: No in inflation which, honey, know what is the inflation rate?
Speaker 1: Now?
Speaker 3: We're about to find out inflation rate USA USA rate.
Speaker 1: Of inflation. Let's see what's the inflation rate currently? Right now?
Speaker 3: The bag the US the r inflation rate is three
Speaker 3: point one eight, meaning your money is losing its value
Speaker 3: at a little over three percent. So if they are
Speaker 3: making you richer by one point five percent, but your
Speaker 3: money is decreasing by three point eight percent, you losing money.
Speaker 1: Whereas if you put your money.
Speaker 3: In the market and the market is generating seven to
Speaker 3: eight to ten percent on average annually over the last
Speaker 3: thirty thirty years or so, like you're going to you'll
Speaker 3: be up like four percent because the market is generating
Speaker 3: say eight percent, and you are losing three percent due
Speaker 3: to inflation. So the difference in that is five percent, right,
Speaker 3: So that means you'll be up five percent.
Speaker 1: But if Whole.
Speaker 3: Life says we'll give you one point five percent, but
Speaker 3: you're gonna lose three percent of inflation, that means you're
Speaker 3: down one point five percent.
Speaker 1: That doesn't make sense, honestly.
Speaker 3: That's why it irritates me so because I'm like that
Speaker 3: whole cast value cash value.
Speaker 1: You're not giving any.
Speaker 3: Interest with cash value. That extra seven hundred dollars just
Speaker 3: goes to people's pockets. That's why they be pushing it
Speaker 3: so hard, because I mean, I've spoken to insurance agents.
Speaker 1: The amount of money they make on Whole Life job.
Speaker 3: It makes their whole life, and that's been at least
Speaker 3: if they say you'll have this benefit that can provide
Speaker 3: that you can provide to your children no matter what,
Speaker 3: even if you don't have any other assets, they get
Speaker 3: this life insurance policy from you. I want you to
Speaker 3: know that this guarantee you comes at a significant cost
Speaker 3: that most it doesn't make most sense for most people.
Speaker 3: It comes at significant costs because yes, you will be
Speaker 3: able to leave this money to your children, but what
Speaker 3: about when your kids are alive.
Speaker 1: I bet you that's seven.
Speaker 3: Hundred dollars month would be more helpful for when you're
Speaker 3: actually alive than a potential one day hopefully million dollars
Speaker 3: if you pass away at eighty Does that make sense?
Speaker 3: And who knows what a million dollars will be by then?
Speaker 3: So I just hope that you understand that, like I
Speaker 3: promise you. I mean, I can't speak for Remat, but
Speaker 3: you can go ahead of Twitter and type in Remat
Speaker 3: set the whole life, and I promise you will see
Speaker 3: him lambosting it, lambasting you know, because I believe in
Speaker 3: life insurance, you know, But I'm just saying that, like
Speaker 3: you want, you know, life insurance is there specifically for
Speaker 3: your earning years to take care of your dependence when
Speaker 3: you're not here.
Speaker 1: That's his core thing.
Speaker 3: Now, certainly you can use life insurance to help boost
Speaker 3: your family to grow wealth.
Speaker 1: So I'll give you an example how I'm using it now.
Speaker 3: So most people know that my husband passed away suddenly
Speaker 3: from aneurism, like two years ago, and we had life insurance.
Speaker 3: I had it, like, oh, I think I have like
Speaker 3: a three million dollar policy because of like the budgetista
Speaker 3: has done very well. We have property and all this
Speaker 3: other stuff. So I wanted to make sure that, like
Speaker 3: you know, he worked for the city and I made
Speaker 3: significantly more than him, and I wanted to make sure that,
Speaker 3: excuse me, that if I was not here for whatever reason,
Speaker 3: you know, he can maintain the life that we've built
Speaker 3: because you know, working for the city doesn't pay a
Speaker 3: ton of money, right, and so he is no longer here,
Speaker 3: and so he did have life insurance policies from his
Speaker 3: job and personal ones and that have paid out to myself,
Speaker 3: his family, and my stepdaughter.
Speaker 1: So that was good he did that.
Speaker 3: And so just so you know, too, you don't have
Speaker 3: to have a lot of money to prepare, you know,
Speaker 3: because his life insurance policy largely is making sure unless
Speaker 3: of my bonus daughter doesn't have to worry about paying
Speaker 3: for school and the money that I put up for too,
Speaker 3: she doesn't have to worry about her first home.
Speaker 1: So, like, you know, I am not anti.
Speaker 3: Life insurance, like it was such a useful tool in
Speaker 3: helping us, like I didn't need the money, but really
Speaker 3: helping us want pay for, you know, funeral expenses, but
Speaker 3: also too, making sure it did what it's supposed to do,
Speaker 3: making sure that you're dependent your daughter, our daughter, you know,
Speaker 3: doesn't have to worry about certain things that we would
Speaker 3: have taken care of with him being here. With that
Speaker 3: being said, my financial advisor said, Tiffany, you still have
Speaker 3: this three million dollar policy. What you want to do
Speaker 3: with you because Jarrell's not here? She said, you can
Speaker 3: cancel it if you want to. Now, I can't remember
Speaker 3: how much I'm paying for the three million dollars. I
Speaker 3: want to say, maybe twelve hundred dollars for the year.
Speaker 1: I can't remember.
Speaker 3: Don't get me to lie, but I can't remember how
Speaker 3: much I'm paying, But the amount is fairly.
Speaker 1: Nominal for my income. Now for me, I.
Speaker 3: Said, let's keep it because I recently got it just
Speaker 3: like a few years ago, and so I still have
Speaker 3: thirty years on it and it doesn't hurt me financially
Speaker 3: to pay, and it can be used as a tool
Speaker 3: for my family so when I'm not here to set
Speaker 3: them up for wealth. That's what you mean. Yes, it
Speaker 3: is possible to use that as a tool, but I
Speaker 3: don't pass that thirty years. If I'm still here, then
Speaker 3: it's gone. You know, It's fine, it's gone. So what
Speaker 3: I'm doing with the policies that I still have, I
Speaker 3: have two I believe, is that it is going I
Speaker 3: have a trust that I created. It is going to
Speaker 3: the trust is the beneficiary to the life insurance policy.
Speaker 3: So it we'll go into the trust if something happens
Speaker 3: to me, and then the trust has I have the
Speaker 3: trust set up where the beneficiary is my mom, my dad,
Speaker 3: if they're still here, my sisters, and my stepdaughter Melissa.
Speaker 3: That along with the other assets, my businesses, money, blah
Speaker 3: blah blah, all of that literally goes into the trust
Speaker 3: and the trust knows what to do. It knows what's
Speaker 3: what to leave Alissa, what to leave my parents if
Speaker 3: they're still here, and whatever's leftover gets split evenly between
Speaker 3: my sisters.
Speaker 1: I have four sisters.
Speaker 3: So I say all that to say that, yes, life
Speaker 3: insurance can certainly be used in that way. Want it
Speaker 3: coverage what it's supposed to cover, which is my dependence,
Speaker 3: who depend on me within this thirty years, twenty ten,
Speaker 3: whatever years, and then beyond that, if it doesn't harm
Speaker 3: you financially, certainly you can think about keeping it on
Speaker 3: like I'm keeping it on. But I hope that makes sense. Yes,
Speaker 3: So I'm not you know, I'm not here to tell
Speaker 3: you what to do, but I'm here to tell.
Speaker 1: You, y'all whole life is a whole mistake.
Speaker 3: And if you are a broker, go someplace else, please,
Speaker 3: because I know you're like, oh, I.
Speaker 1: Block.
Speaker 3: You know, I don't be y'all be writing sometimes you'd
Speaker 3: be writing a whole solio quick, I said, poor tink
Speaker 3: tank because I don't the moment I read any sort
Speaker 3: of like black. Now, if you have some constructive things,
Speaker 3: certainly you know, because I don't get everything right.
Speaker 1: But here's the thing.
Speaker 3: This, this part of the book, one thing of when
Speaker 3: I wrote Get You with Money, I made sure the
Speaker 3: parts where I am not the expert in I am
Speaker 3: not an insurance expert but you know what I did.
Speaker 1: I literally hired.
Speaker 3: An insurance expert to interview for this component, to go
Speaker 3: through all parts of life insurance and why and in
Speaker 3: the ins and out because I ain't want to just
Speaker 3: be talking and so when you come at me, I'm
Speaker 3: just saying, like, this is not just like what I
Speaker 3: pulled from the air. No, no, no, I interviewed actually
Speaker 3: a number of people were one expert in particular, like
Speaker 3: why what is the difference, Why is it not better?
Speaker 3: Why shouldn't people get whole like the and so just
Speaker 3: know that this is like a find a certified financial planner?
Speaker 3: Who who who I tapped into for this section of
Speaker 3: the book. Each section of the book has its own
Speaker 3: expert the parts that I'm that's not my expertise. So
Speaker 3: I don't have schooling in or whatever certificates in just
Speaker 3: so you know, come from your mama, not me. Okay,
Speaker 3: all right, So I hope that's helpful. Yeah, okay, I'm
Speaker 3: Todd and Rob. We had a good time, if not
Speaker 3: a long time.
Speaker 1: All right.
Speaker 3: So if you want your questions to be answered on
Speaker 3: the Brando Vision podcast Brannobision Podcasts at gmail dot com,
Speaker 3: the BA Podcast on Twitter Barnabisch and podcasts on ig
Speaker 3: barnabischmpodcast dot com. Just contact us there and get your
Speaker 3: questions answered. Until next time.
Speaker 1: Goodbye, fail Awa, I do that, Ain't I do? I do? Tod?
Speaker 1: You and you and you?
Speaker 3: Goodbye Name that tune tweeted to me the bunch of
Speaker 3: the stood Bye