WEBVTT - The Smartest Ways to Invest in Your Future

0:00:06.200 --> 0:00:09.760
<v Speaker 1>It's time for the b a q a a to

0:00:09.880 --> 0:00:12.440
<v Speaker 1>b a q a what you say to b a

0:00:12.840 --> 0:00:16.160
<v Speaker 1>q a jiph and the b a q a no man.

0:00:16.160 --> 0:00:19.200
<v Speaker 2>Day the b a q a A.

0:00:20.239 --> 0:00:23.320
<v Speaker 1>Hey, it's me Tiphany by myself. Maybe had to jump,

0:00:24.440 --> 0:00:26.439
<v Speaker 1>but that's okay. We still got you. This is Brianda

0:00:26.480 --> 0:00:28.600
<v Speaker 1>bitch a question answers. You have questions, we have answers.

0:00:28.640 --> 0:00:31.120
<v Speaker 1>Although I am not a c f P, I'm not

0:00:31.120 --> 0:00:33.840
<v Speaker 1>your financial adviser. I'm not your doctor or your lawyer,

0:00:34.000 --> 0:00:37.680
<v Speaker 1>not your sister, but your friend aka suit, your granny,

0:00:37.760 --> 0:00:41.320
<v Speaker 1>not us, because this is for entertainment purposes only. My

0:00:41.360 --> 0:00:44.000
<v Speaker 1>attorney Tony will be so proud and I love when

0:00:44.040 --> 0:00:47.800
<v Speaker 1>you attorney BA family listeners sliding like yes girl, tell

0:00:47.840 --> 0:00:51.519
<v Speaker 1>them so. I'm gonna do money questions because that's my gamma.

0:00:52.840 --> 0:00:55.440
<v Speaker 1>First question is from missus X.

0:00:55.720 --> 0:00:56.160
<v Speaker 2>Here's the thing.

0:00:56.160 --> 0:00:58.840
<v Speaker 1>If you actually have questions, you can sliden our dms

0:00:58.880 --> 0:01:02.960
<v Speaker 1>at Brianna Bischen podcast on IG. You can also go

0:01:03.000 --> 0:01:06.479
<v Speaker 1>to brannibishonpodcast dot com and click contact us or email

0:01:06.520 --> 0:01:08.200
<v Speaker 1>us at brand and Bison podcast.

0:01:07.959 --> 0:01:09.840
<v Speaker 2>At gmail dot com.

0:01:09.880 --> 0:01:13.640
<v Speaker 1>All Right, missus X says love your show, Tiffany will

0:01:13.680 --> 0:01:16.280
<v Speaker 1>miss you girl. Oh I'm ill miss you too, she said. Okay,

0:01:16.280 --> 0:01:18.920
<v Speaker 1>my name is missus X, and my husband and I

0:01:19.000 --> 0:01:21.880
<v Speaker 1>make a combined income of nearly Sorry wrong.

0:01:21.720 --> 0:01:26.160
<v Speaker 2>One, we did that last time. This is from Regina.

0:01:26.840 --> 0:01:30.320
<v Speaker 1>Hey, ladies, Regina here love all of your content and

0:01:30.440 --> 0:01:33.319
<v Speaker 1>all that you do and share. I've been following Tiffany

0:01:33.360 --> 0:01:35.559
<v Speaker 1>for quite a few years now. I don't even remember

0:01:35.560 --> 0:01:40.080
<v Speaker 1>where I started. Girl me either, question, she said, I

0:01:40.120 --> 0:01:42.440
<v Speaker 1>have a four one K from a previous employer still

0:01:42.520 --> 0:01:45.920
<v Speaker 1>sitting with your original brokerage I opened it with when

0:01:45.959 --> 0:01:48.960
<v Speaker 1>I work there t A, And now I'm with a

0:01:49.000 --> 0:01:51.440
<v Speaker 1>new employer and have a four one K through a

0:01:51.480 --> 0:01:57.520
<v Speaker 1>current employer at a different brokerage, Fidelity. Now that I realize,

0:01:58.480 --> 0:02:00.720
<v Speaker 1>I should roll over my original four one K from

0:02:00.760 --> 0:02:06.240
<v Speaker 1>TIAA over to an IRA for ease. So she's basically asking, one,

0:02:06.480 --> 0:02:10.000
<v Speaker 1>should I just roll over from tia to Fidelity?

0:02:10.560 --> 0:02:10.800
<v Speaker 2>Two?

0:02:11.120 --> 0:02:13.040
<v Speaker 1>If I do this then end up with a different

0:02:13.040 --> 0:02:16.399
<v Speaker 1>employer later in life at another brokerage, would I would

0:02:16.440 --> 0:02:20.360
<v Speaker 1>I be able to roll over both iras or both

0:02:20.400 --> 0:02:23.680
<v Speaker 1>of her four one k accounts to a current act

0:02:23.720 --> 0:02:24.920
<v Speaker 1>of four one K.

0:02:25.120 --> 0:02:26.359
<v Speaker 2>So okay, I'm gonna break this down.

0:02:26.440 --> 0:02:28.160
<v Speaker 1>She said, I would imagine I would want to keep

0:02:28.160 --> 0:02:29.799
<v Speaker 1>them together just so I don't forget where my money is.

0:02:29.880 --> 0:02:30.120
<v Speaker 2>Girl.

0:02:30.240 --> 0:02:32.359
<v Speaker 1>Yes, thank you so much for your thoughts. And no,

0:02:32.480 --> 0:02:33.880
<v Speaker 1>I won't see my brown besties.

0:02:34.120 --> 0:02:34.679
<v Speaker 2>Yes, I love that.

0:02:34.720 --> 0:02:37.800
<v Speaker 1>She wrote that Smiley's face crying face, happy face, laughing face.

0:02:38.320 --> 0:02:43.800
<v Speaker 1>Regina's asking me this question, which is very common. She said, Basically,

0:02:44.639 --> 0:02:46.200
<v Speaker 1>I want you to think about it this way. If

0:02:46.280 --> 0:02:48.840
<v Speaker 1>you are not with your boyfriend no more, and your

0:02:48.880 --> 0:02:51.639
<v Speaker 1>partner your mate, and you still have your stuff at

0:02:51.639 --> 0:02:55.440
<v Speaker 1>that house, child, take your stuff with you because it's yours,

0:02:55.800 --> 0:02:58.480
<v Speaker 1>and you're right, we are grown. You are likely to

0:02:58.520 --> 0:03:01.360
<v Speaker 1>find another employee, and another employer, another player. This is

0:03:01.360 --> 0:03:05.320
<v Speaker 1>what I would say, Like, I don't necessarily think that

0:03:05.400 --> 0:03:07.400
<v Speaker 1>you have to roll it over to the new place.

0:03:07.639 --> 0:03:10.480
<v Speaker 2>You can or and you.

0:03:10.480 --> 0:03:15.320
<v Speaker 1>Have the alternative of having an external account. You know,

0:03:15.360 --> 0:03:18.160
<v Speaker 1>you can open up with a bank, an external IRA account,

0:03:18.320 --> 0:03:22.440
<v Speaker 1>an individual retirement account, and so meaning like getting like

0:03:22.440 --> 0:03:25.120
<v Speaker 1>a you could literally open up like a you know,

0:03:25.160 --> 0:03:27.160
<v Speaker 1>it could be fidelity, It could be I mean, they

0:03:27.160 --> 0:03:29.440
<v Speaker 1>have to so many of them. Charles Schwab, For example,

0:03:29.760 --> 0:03:33.239
<v Speaker 1>I think Chase probably has one this external account where

0:03:33.280 --> 0:03:38.160
<v Speaker 1>basically it houses any retirement account for a company you

0:03:38.200 --> 0:03:40.360
<v Speaker 1>no longer work for, so you don't have to worry

0:03:40.360 --> 0:03:43.520
<v Speaker 1>about like oh like like I used to see free school.

0:03:43.520 --> 0:03:45.560
<v Speaker 1>We used to sing this song Tam Bear's in the bed,

0:03:45.600 --> 0:03:48.720
<v Speaker 1>and the little one said roll over, roll over, and

0:03:48.760 --> 0:03:51.480
<v Speaker 1>they all rolled over and want fell out. Sometimes it

0:03:51.520 --> 0:03:54.080
<v Speaker 1>could be overwhelming to roll over from the new place.

0:03:54.080 --> 0:03:56.680
<v Speaker 1>Oh then then the new place. So what I did

0:03:56.760 --> 0:03:58.560
<v Speaker 1>when you know I left my job is I had

0:03:58.600 --> 0:04:01.880
<v Speaker 1>an external brokeer's account in any new place that I

0:04:01.920 --> 0:04:03.720
<v Speaker 1>was leaving, I could just roll it over into that

0:04:03.760 --> 0:04:06.040
<v Speaker 1>external account. Does that make sense?

0:04:06.720 --> 0:04:08.240
<v Speaker 2>Okay?

0:04:08.640 --> 0:04:11.880
<v Speaker 1>Now there's nothing wrong with's going from Tia to Fidelity

0:04:11.920 --> 0:04:14.520
<v Speaker 1>and the Fidelity to Charles Swap or whoever. If you

0:04:14.640 --> 0:04:17.000
<v Speaker 1>decide to move jobs, you can do that as well. Honestly,

0:04:17.040 --> 0:04:19.880
<v Speaker 1>there's no right or wrong. Well that's not true. The

0:04:19.920 --> 0:04:22.520
<v Speaker 1>one wrong way would be to pull out the money

0:04:22.560 --> 0:04:26.720
<v Speaker 1>yourself and then put it someplace else. Rollovers is not

0:04:26.760 --> 0:04:29.560
<v Speaker 1>your business. It's between bank and bank. Because you don't

0:04:29.560 --> 0:04:31.280
<v Speaker 1>want to pull out the money yourself from your four

0:04:31.320 --> 0:04:33.800
<v Speaker 1>to one k or ira, because unless you're fifty nine

0:04:33.800 --> 0:04:36.240
<v Speaker 1>and a half, you're going to incur a fee. They're

0:04:36.279 --> 0:04:38.800
<v Speaker 1>gonna take your money. So you want the bank and

0:04:38.839 --> 0:04:40.640
<v Speaker 1>the bank to talk to each other. You just got

0:04:40.640 --> 0:04:42.720
<v Speaker 1>to tell them, Hey, I just did this the other

0:04:42.760 --> 0:04:44.479
<v Speaker 1>day actually because I had some old IRA that I

0:04:44.480 --> 0:04:48.520
<v Speaker 1>forgot about. Hey, Tia, I'm moving over to Fidelity or

0:04:48.680 --> 0:04:51.520
<v Speaker 1>Charles Schwap or wherever. Y'all have to talk to each other.

0:04:51.480 --> 0:04:53.280
<v Speaker 1>You'll have to fill out some paperwork and they will

0:04:53.320 --> 0:04:55.880
<v Speaker 1>do the rollover themselves, so it doesn't look like with

0:04:55.960 --> 0:04:59.800
<v Speaker 1>an early retirement withdrawal, which you don't want. Okay, that's

0:04:59.839 --> 0:05:01.839
<v Speaker 1>your only way to quote unquote do it wrong is

0:05:01.880 --> 0:05:03.680
<v Speaker 1>to do it yourself and not let the banks take

0:05:03.680 --> 0:05:05.640
<v Speaker 1>care of it. So whether you roll over to your

0:05:05.640 --> 0:05:09.159
<v Speaker 1>new place or you know, or you just choose someplace

0:05:09.240 --> 0:05:11.719
<v Speaker 1>externally to just collect all of those places. I don't

0:05:11.720 --> 0:05:13.720
<v Speaker 1>know how old you are, Regina, because you're likely we'll

0:05:13.760 --> 0:05:14.520
<v Speaker 1>find another job.

0:05:15.000 --> 0:05:17.000
<v Speaker 2>You know. To me, I don't have a dog in

0:05:17.040 --> 0:05:17.360
<v Speaker 2>that fight.

0:05:17.600 --> 0:05:21.760
<v Speaker 1>Is good either way, Okay, I just probably choose someplace externally,

0:05:22.080 --> 0:05:24.480
<v Speaker 1>because don't nobody work no place for fifty sixty years

0:05:24.560 --> 0:05:26.320
<v Speaker 1>no more, and you are likely to leave.

0:05:26.880 --> 0:05:29.240
<v Speaker 2>It's just good practice, all right.

0:05:30.360 --> 0:05:34.200
<v Speaker 1>We're gonna take a break if you will and come

0:05:34.240 --> 0:05:37.400
<v Speaker 1>back to answer another question.

0:05:41.040 --> 0:05:43.640
<v Speaker 2>And we are back.

0:05:44.360 --> 0:05:49.120
<v Speaker 1>Okay, okay, so we're This is actually a follow up question, Brianna,

0:05:50.080 --> 0:05:52.120
<v Speaker 1>she asked a question.

0:05:53.960 --> 0:05:55.279
<v Speaker 2>I don't remember when you asked a question, Brian.

0:05:55.320 --> 0:05:57.760
<v Speaker 1>Anyway, so she said, Hi, Tiffany, thank you so much

0:05:57.800 --> 0:06:00.920
<v Speaker 1>for answering my questions on episode. Then't wait to invest

0:06:00.960 --> 0:06:03.719
<v Speaker 1>in your kid's future. I appreciate you and Mandy for

0:06:03.760 --> 0:06:05.240
<v Speaker 1>taking the time to answer our questions.

0:06:05.320 --> 0:06:05.679
<v Speaker 2>Of course.

0:06:06.000 --> 0:06:09.640
<v Speaker 1>Okay, So Brianna asked a number of questions because she

0:06:09.640 --> 0:06:11.120
<v Speaker 1>says she gonna get hers in and we just gonna

0:06:11.120 --> 0:06:13.880
<v Speaker 1>answer this bom. She said, I did want to ask

0:06:14.040 --> 0:06:15.799
<v Speaker 1>how do I go about finding a CFP?

0:06:16.200 --> 0:06:19.000
<v Speaker 2>Good question. Go to a site that I built called

0:06:19.560 --> 0:06:21.560
<v Speaker 2>make Sure. If it doesn't work, I don't want to

0:06:21.560 --> 0:06:24.479
<v Speaker 2>tell custom me out. Please, Okay, it's good. Perfect.

0:06:24.720 --> 0:06:28.760
<v Speaker 1>You're gonna go to a website called your moneymatch dot com.

0:06:29.000 --> 0:06:30.680
<v Speaker 1>It is a free website that I built to help

0:06:30.760 --> 0:06:34.480
<v Speaker 1>to get you match to a CFP. Right, And so

0:06:35.000 --> 0:06:37.400
<v Speaker 1>what I love about it is is that we work.

0:06:37.440 --> 0:06:41.080
<v Speaker 1>We work with this company called wealth Ramp to help

0:06:41.120 --> 0:06:43.080
<v Speaker 1>you match. But bigger than that, I give you all

0:06:43.120 --> 0:06:45.520
<v Speaker 1>the information that you need because when I found my

0:06:45.560 --> 0:06:49.800
<v Speaker 1>perfect CFP. It's because I created something called my sol

0:06:49.880 --> 0:06:53.320
<v Speaker 1>called Financial Life, which is like this spreadsheet of like

0:06:53.440 --> 0:06:56.160
<v Speaker 1>all these answers that my CFP is likely to ask me.

0:06:56.480 --> 0:06:59.799
<v Speaker 1>I talk, I give you a checklist of questions to ask,

0:07:00.160 --> 0:07:01.680
<v Speaker 1>of what you should be looking for, how you should

0:07:01.720 --> 0:07:02.320
<v Speaker 1>be made to feel.

0:07:02.400 --> 0:07:03.520
<v Speaker 2>So I'll give you all.

0:07:03.400 --> 0:07:06.560
<v Speaker 1>This information for free about not just how to find

0:07:06.560 --> 0:07:08.760
<v Speaker 1>a CFP, but how to be prepared to interview with them.

0:07:08.839 --> 0:07:11.000
<v Speaker 1>Does that make sense? And I remember welfware and boards

0:07:11.040 --> 0:07:13.960
<v Speaker 1>like girl, like the people you have been sending us

0:07:14.680 --> 0:07:16.840
<v Speaker 1>top notch because they have their I said, yeah, yeah,

0:07:16.880 --> 0:07:19.720
<v Speaker 1>because we give the checklists, they are ready ready. So

0:07:20.360 --> 0:07:24.160
<v Speaker 1>your moneymatch dot com is completely free. It's not free

0:07:24.200 --> 0:07:26.360
<v Speaker 1>to work with the CFP, but it is free. I

0:07:26.400 --> 0:07:29.040
<v Speaker 1>provide the service to help you get matches to one. Okay,

0:07:29.400 --> 0:07:32.920
<v Speaker 1>that's your first question. And then she says, and with

0:07:33.080 --> 0:07:36.000
<v Speaker 1>my roth Ira and four one K account, how do

0:07:36.080 --> 0:07:38.240
<v Speaker 1>I go about finding which stocks to invest in?

0:07:38.520 --> 0:07:41.080
<v Speaker 2>Okay? So if you're talking about how do you.

0:07:41.000 --> 0:07:45.880
<v Speaker 1>Pick stocks to invest in, especially that four one k girl,

0:07:46.000 --> 0:07:47.920
<v Speaker 1>you're not likely to be able to pick individual stocks

0:07:47.960 --> 0:07:49.679
<v Speaker 1>in your four one k. That's usually not how it works.

0:07:49.960 --> 0:07:53.920
<v Speaker 1>Usually bost most like IRA's and four one k's whatever.

0:07:53.920 --> 0:07:57.600
<v Speaker 1>You're usually picking mutual funds, maybe some ETFs, but typically

0:07:57.600 --> 0:08:00.400
<v Speaker 1>you're picking a mutual fund. And ideally, like I said,

0:08:00.440 --> 0:08:03.360
<v Speaker 1>especially for that fourward K, you are going to look

0:08:03.400 --> 0:08:07.960
<v Speaker 1>to see if they have something called a TDF that's

0:08:08.040 --> 0:08:13.000
<v Speaker 1>a target data fund, So it is a mutual fund

0:08:13.000 --> 0:08:16.200
<v Speaker 1>that's based upon your age, right, or sometimes they call

0:08:16.240 --> 0:08:19.559
<v Speaker 1>it a life cycle fund or target retirement fund.

0:08:20.080 --> 0:08:20.280
<v Speaker 2>Right.

0:08:20.400 --> 0:08:22.120
<v Speaker 1>So what I like about these funds is they are

0:08:22.160 --> 0:08:26.200
<v Speaker 1>designed to automatically rebalance your portfolio, meaning the things that

0:08:26.240 --> 0:08:29.440
<v Speaker 1>you're invested in based upon you as you as you age.

0:08:29.680 --> 0:08:33.640
<v Speaker 1>So that means that the older you get, the more

0:08:33.800 --> 0:08:36.640
<v Speaker 1>that your investments shift from risk your investments to quote

0:08:36.720 --> 0:08:40.000
<v Speaker 1>unquote safer ones. Because the target date is a date

0:08:40.040 --> 0:08:43.559
<v Speaker 1>of retirement. So let's just say you're retiring in twenty years.

0:08:43.640 --> 0:08:46.280
<v Speaker 1>So right now, you know, it might have you outside, honey,

0:08:46.600 --> 0:08:47.960
<v Speaker 1>like just trying these streets out.

0:08:48.120 --> 0:08:50.120
<v Speaker 2>But let's just say your your target date is in

0:08:50.160 --> 0:08:50.679
<v Speaker 2>two years.

0:08:51.200 --> 0:08:53.520
<v Speaker 1>Then it's going to give your it's going to prepare

0:08:53.600 --> 0:08:57.000
<v Speaker 1>your money, it's going to rebalance automatically for your money

0:08:57.040 --> 0:08:59.440
<v Speaker 1>to get closer and closer to things. Maybe like bonds

0:08:59.440 --> 0:09:02.720
<v Speaker 1>and like cash investments, like maybe like a high yield

0:09:02.720 --> 0:09:05.680
<v Speaker 1>savings account, because that's what you're wanting. Because the closer

0:09:05.720 --> 0:09:07.679
<v Speaker 1>you get to retirement, the less risky you want to be.

0:09:07.720 --> 0:09:08.920
<v Speaker 1>You don't want to take a big risk and you

0:09:08.960 --> 0:09:10.920
<v Speaker 1>retire next year and you lose all your money. But

0:09:11.200 --> 0:09:14.680
<v Speaker 1>if you've got ten, twenty fifteen years, you know, then

0:09:14.760 --> 0:09:17.280
<v Speaker 1>you want to take bigger risk because bigger risk means

0:09:17.280 --> 0:09:20.120
<v Speaker 1>bigger rewards. Does that make sense? So TDF target date

0:09:20.160 --> 0:09:25.360
<v Speaker 1>fund or life cycle fund, same thing, or target retirement fund. Okay,

0:09:25.520 --> 0:09:26.080
<v Speaker 1>all right, let me.

0:09:26.080 --> 0:09:27.720
<v Speaker 2>Say what else you ask? That's not a lot.

0:09:28.000 --> 0:09:30.000
<v Speaker 1>Also, Tiffany, you grew my interest in learning about a

0:09:30.040 --> 0:09:31.760
<v Speaker 1>custodial account for my child.

0:09:32.360 --> 0:09:35.320
<v Speaker 2>Where do I go about inquiring about a custodial account?

0:09:35.800 --> 0:09:36.880
<v Speaker 2>And so here's the thing.

0:09:36.920 --> 0:09:39.400
<v Speaker 1>If you for a custodial account, I mean, if you

0:09:39.480 --> 0:09:42.520
<v Speaker 1>work with your let me see where to get I'm

0:09:42.520 --> 0:09:45.240
<v Speaker 1>gonna actually look up because I know where I have mine.

0:09:45.600 --> 0:09:50.640
<v Speaker 2>But if you work I'll be googling.

0:09:51.040 --> 0:09:52.840
<v Speaker 1>But if you work with your financial advisor, like she

0:09:52.840 --> 0:09:56.080
<v Speaker 1>helped me pick one, and so you can get it

0:09:56.080 --> 0:09:59.800
<v Speaker 1>honestly from all the places. The usual suspects Charles Schwab.

0:10:00.000 --> 0:10:06.040
<v Speaker 1>A bank has one Fidelity, Vanguard, and so any brokerage account,

0:10:06.080 --> 0:10:11.360
<v Speaker 1>any major brokerage account typically will have a custodial account. Yeah,

0:10:11.400 --> 0:10:13.320
<v Speaker 1>and so, like I said, I have one for my bonus,

0:10:13.320 --> 0:10:15.760
<v Speaker 1>maybe actually have one for all my ladies, my nieces,

0:10:15.840 --> 0:10:19.760
<v Speaker 1>my nephew and Alissa. So actually, now that she just

0:10:19.800 --> 0:10:21.680
<v Speaker 1>turned eighteen, actually I just have to look at that

0:10:21.720 --> 0:10:26.040
<v Speaker 1>because I believe the money that set aside for her

0:10:26.120 --> 0:10:28.000
<v Speaker 1>might be transferred over to her, although she knows not

0:10:28.120 --> 0:10:28.960
<v Speaker 1>to touch that thing.

0:10:29.360 --> 0:10:33.679
<v Speaker 2>Okay, what else? What else? Where do I go?

0:10:33.800 --> 0:10:35.680
<v Speaker 1>I'm been inquiring about a custodio account, Like I told you,

0:10:35.679 --> 0:10:40.160
<v Speaker 1>those main brokerage accounts, Vanguard, Chilshwab, Fidelity, all of them,

0:10:40.200 --> 0:10:43.000
<v Speaker 1>haven't Is it with my local bank or with the

0:10:43.080 --> 0:10:45.040
<v Speaker 1>high old tape. No, A custodial account is not a

0:10:45.120 --> 0:10:48.439
<v Speaker 1>high old savings account. It's basically an investment account that

0:10:48.480 --> 0:10:51.480
<v Speaker 1>you are setting aside specifically for a young person who's

0:10:51.559 --> 0:10:55.079
<v Speaker 1>under the age of eighteen, and you're investing kind of

0:10:55.120 --> 0:10:57.320
<v Speaker 1>like on their behalf until they get old enough, and

0:10:57.360 --> 0:10:59.400
<v Speaker 1>you are the custodian of that money.

0:10:59.800 --> 0:11:03.080
<v Speaker 2>I did that for especially.

0:11:02.760 --> 0:11:06.240
<v Speaker 1>Alyssa well more so for the younger kids like Roman

0:11:06.360 --> 0:11:10.000
<v Speaker 1>is like a Amelia seven and Lily, my niece is six.

0:11:10.600 --> 0:11:13.360
<v Speaker 1>Because I don't necessarily know what a five to twenty

0:11:13.440 --> 0:11:16.959
<v Speaker 1>nine plan, which is an alternative kind of to a

0:11:17.040 --> 0:11:19.760
<v Speaker 1>custodia account. The benefit of a five to twenty nine

0:11:19.800 --> 0:11:22.400
<v Speaker 1>plan is that there are tax benefits if you put.

0:11:22.280 --> 0:11:23.559
<v Speaker 2>Money into a five to twenty nine pen.

0:11:24.160 --> 0:11:26.360
<v Speaker 1>The worry I had is what if this kid does

0:11:26.400 --> 0:11:29.760
<v Speaker 1>not want to go to school. Although they've relaxed some

0:11:30.040 --> 0:11:32.760
<v Speaker 1>of the ways you can use a five twenty nine pair.

0:11:32.800 --> 0:11:34.560
<v Speaker 1>It used to be just for college, but now you

0:11:34.559 --> 0:11:37.920
<v Speaker 1>can use it for education overall, and also too, up

0:11:37.960 --> 0:11:39.640
<v Speaker 1>to a certain amount, you can actually roll over a

0:11:39.679 --> 0:11:43.320
<v Speaker 1>five to twenty nine point to a raw IRA in

0:11:43.360 --> 0:11:44.880
<v Speaker 1>a retirement account for that child.

0:11:45.400 --> 0:11:47.439
<v Speaker 2>So there's more and more relaxed.

0:11:47.240 --> 0:11:49.760
<v Speaker 1>So also too, so consider a five twenty nine plant,

0:11:49.800 --> 0:11:52.880
<v Speaker 1>depending how old or how young your kid is. But

0:11:52.960 --> 0:11:55.200
<v Speaker 1>I didn't like five twenty nine plans before just because

0:11:55.600 --> 0:11:57.320
<v Speaker 1>for what I was doing, because I wasn't sure if

0:11:57.320 --> 0:11:58.680
<v Speaker 1>the kids in my life were all going to go

0:11:58.720 --> 0:12:01.760
<v Speaker 1>to school. I mean, now that our listens in school,

0:12:01.760 --> 0:12:03.080
<v Speaker 1>I'm like, damn, I should have put it in there.

0:12:03.120 --> 0:12:06.720
<v Speaker 1>But she got her money from her custodial account. All right,

0:12:06.880 --> 0:12:11.680
<v Speaker 1>I hope all these questions got answered. Oh you wanted

0:12:11.720 --> 0:12:15.280
<v Speaker 1>to know how to invest in your wrath. Ross don't

0:12:15.320 --> 0:12:18.560
<v Speaker 1>typically have target date funds, I believe, but you can

0:12:18.640 --> 0:12:22.120
<v Speaker 1>choose mutual funds, you know, if you're not really sure,

0:12:22.160 --> 0:12:25.920
<v Speaker 1>because this will allow you to invest in a grouping

0:12:26.400 --> 0:12:29.840
<v Speaker 1>of investments if you will, and so you won't feel

0:12:30.440 --> 0:12:33.400
<v Speaker 1>as like, you know, burden by choosing individual stocks, which

0:12:33.440 --> 0:12:35.800
<v Speaker 1>can be of quite the heavy lift. So you can

0:12:35.880 --> 0:12:39.120
<v Speaker 1>choose a mutual fund that is based upon the general

0:12:39.160 --> 0:12:43.400
<v Speaker 1>stock market, so you'll like, for example, like the S

0:12:43.440 --> 0:12:46.640
<v Speaker 1>and P five hundred. That's the top five hundred companies

0:12:47.120 --> 0:12:52.280
<v Speaker 1>in the United States, right, And so there are mutual.

0:12:52.000 --> 0:12:55.040
<v Speaker 2>Funds that do what that market does.

0:12:55.280 --> 0:12:57.600
<v Speaker 1>And the reason why this can be an effect, this

0:12:57.720 --> 0:13:00.400
<v Speaker 1>can be an effective way to invest, is that that

0:13:00.440 --> 0:13:03.600
<v Speaker 1>market over the last thirty to one hundred years has

0:13:03.679 --> 0:13:06.480
<v Speaker 1>generated on average, on the low end, seven to eight

0:13:06.559 --> 0:13:10.000
<v Speaker 1>percent annually, on the higher end ten percent annually, depending

0:13:10.000 --> 0:13:11.880
<v Speaker 1>on who you talk to. And so what does that mean.

0:13:12.400 --> 0:13:14.240
<v Speaker 1>That means even on its way down, it's still on

0:13:14.280 --> 0:13:16.280
<v Speaker 1>its way up. So if you just say, do what

0:13:16.320 --> 0:13:19.000
<v Speaker 1>the market does, if you keep your money there long enough,

0:13:19.040 --> 0:13:21.439
<v Speaker 1>you usually will come up. And so is that is

0:13:21.480 --> 0:13:23.960
<v Speaker 1>a way for beginner investors to say, Okay, let me

0:13:24.040 --> 0:13:25.520
<v Speaker 1>just put my money and do what the market does,

0:13:25.600 --> 0:13:27.960
<v Speaker 1>because even if I would look, now, let's see.

0:13:27.840 --> 0:13:28.960
<v Speaker 2>What is what it is so far?

0:13:29.440 --> 0:13:33.280
<v Speaker 1>Right now, so far in twenty twenty four, the S

0:13:33.320 --> 0:13:36.680
<v Speaker 1>and P five hundred has returned on average nineteen point

0:13:36.679 --> 0:13:39.000
<v Speaker 1>thirteen percent, meaning if you put your money in in

0:13:39.040 --> 0:13:41.040
<v Speaker 1>the beginning of the year till now, you be up

0:13:41.120 --> 0:13:43.360
<v Speaker 1>nineteen percent. Now did I tell you that the average

0:13:43.360 --> 0:13:46.480
<v Speaker 1>is about between seven and ten percent? Because it's up

0:13:46.559 --> 0:13:49.720
<v Speaker 1>nineteen but next year it might be down twenty and

0:13:49.720 --> 0:13:52.679
<v Speaker 1>then you're going to average over those two years ten percentage.

0:13:52.720 --> 0:13:54.280
<v Speaker 1>Does that make sense? So just know it's going to

0:13:54.320 --> 0:13:55.559
<v Speaker 1>go up and down, but that you're supposed to leave

0:13:55.559 --> 0:13:58.439
<v Speaker 1>your money alone anyway, all right?

0:13:59.200 --> 0:14:00.880
<v Speaker 2>If you like b a q.

0:14:01.080 --> 0:14:04.040
<v Speaker 1>A, continue to ask us questions, leave us reviews, especially

0:14:04.120 --> 0:14:07.200
<v Speaker 1>on that apple, because it allows people to see here

0:14:07.320 --> 0:14:09.679
<v Speaker 1>and know us for us to expand our reach.

0:14:10.520 --> 0:14:13.800
<v Speaker 2>Until Monday and next week, Bye bye.