1 00:00:06,320 --> 00:00:10,080 Speaker 1: It's time for the big a qa A to b 2 00:00:10,200 --> 00:00:13,520 Speaker 1: a qa what you say, the b a qa no 3 00:00:13,720 --> 00:00:17,120 Speaker 1: man day, but the b a Q eight with Tiffany, 4 00:00:17,440 --> 00:00:21,279 Speaker 1: the Big a Q eight with Tiffany. Hey. So Mandy's 5 00:00:21,320 --> 00:00:23,919 Speaker 1: off the stew hopefully she's dropping that baby as we 6 00:00:23,920 --> 00:00:26,159 Speaker 1: speak instead of dropping it like it's hot. But you 7 00:00:26,160 --> 00:00:29,479 Speaker 1: know our girl Mandy, she out here just Mandy doing 8 00:00:29,520 --> 00:00:31,680 Speaker 1: all the things because Mandy k never sits still. I'm 9 00:00:31,680 --> 00:00:34,560 Speaker 1: sure Mandy's like and literally I don't even know, painting 10 00:00:34,600 --> 00:00:36,680 Speaker 1: the house or something like that because Mandy is a 11 00:00:36,720 --> 00:00:39,680 Speaker 1: busy body. Oh but we're gonna get Mandy the rest child. 12 00:00:39,720 --> 00:00:42,760 Speaker 1: But I got y'all. We have great questions today. We 13 00:00:42,840 --> 00:00:45,400 Speaker 1: got a money question, we have a business question. I 14 00:00:45,440 --> 00:00:50,200 Speaker 1: wonder which I should do first? Hum, you know what 15 00:00:51,000 --> 00:00:53,920 Speaker 1: last time I did the money question first and the 16 00:00:53,920 --> 00:00:56,880 Speaker 1: business question second. We're gonna flip the script. Okay, So 17 00:00:56,920 --> 00:01:01,760 Speaker 1: the first question comes from my mentor group. So y'all 18 00:01:01,800 --> 00:01:05,000 Speaker 1: know that I mentor young women, especially black women and business, 19 00:01:05,319 --> 00:01:07,720 Speaker 1: well not young young in business. So you can be 20 00:01:07,840 --> 00:01:09,880 Speaker 1: you know, ten, or you can be one hundred and ten. 21 00:01:10,280 --> 00:01:13,560 Speaker 1: But like new wish to business and I do that 22 00:01:13,640 --> 00:01:19,440 Speaker 1: through Patreon via my mentor Tiffany dot com. And so 23 00:01:20,120 --> 00:01:22,240 Speaker 1: one of the things that comes up again from my 24 00:01:22,280 --> 00:01:25,720 Speaker 1: mentees is about about lots of my check maybe like 25 00:01:25,760 --> 00:01:28,240 Speaker 1: ony eleven hundred mentees. One of the things that comes 26 00:01:28,360 --> 00:01:30,200 Speaker 1: up over and over and over. A question that comes 27 00:01:30,280 --> 00:01:34,679 Speaker 1: up is, Tiffany, if I like, when I'm ready to hire, 28 00:01:35,600 --> 00:01:37,360 Speaker 1: how do I go about doing so? Like, how do 29 00:01:37,440 --> 00:01:39,880 Speaker 1: I know who to hire? First? Second? Third? How do 30 00:01:39,959 --> 00:01:44,360 Speaker 1: I go about hiring? So come into the room, the 31 00:01:44,440 --> 00:01:47,560 Speaker 1: mente room. So let's talk about hiring and the mistakes 32 00:01:47,560 --> 00:01:50,880 Speaker 1: that I made so you don't make them, and what 33 00:01:50,960 --> 00:01:56,640 Speaker 1: I would suggest. So everyone's initial needs your reaction when 34 00:01:56,680 --> 00:01:59,600 Speaker 1: it comes to hiring someone. They think that they ought 35 00:01:59,600 --> 00:02:02,040 Speaker 1: to hire an admin first, which kind of makes sense, right. 36 00:02:02,080 --> 00:02:04,320 Speaker 1: You're like, oh, I need help with these emails, I 37 00:02:04,360 --> 00:02:08,360 Speaker 1: need help navigating, you know, like some sort of honestly 38 00:02:08,360 --> 00:02:10,520 Speaker 1: somebody to kind of like put by your side to 39 00:02:10,600 --> 00:02:13,400 Speaker 1: help you pick up the pieces. Typically that's like an admin. 40 00:02:13,919 --> 00:02:16,919 Speaker 1: And that's what I did. And I would say and 41 00:02:17,120 --> 00:02:21,960 Speaker 1: that although having an ADMIN can be an important component 42 00:02:22,120 --> 00:02:25,160 Speaker 1: to like growing your business and making them more stable, 43 00:02:26,080 --> 00:02:29,760 Speaker 1: I push back and say, the first person you need 44 00:02:29,880 --> 00:02:35,280 Speaker 1: to hire is a financial person because money is the 45 00:02:35,440 --> 00:02:39,480 Speaker 1: life blood of your business. Literally, the blood that flows 46 00:02:39,520 --> 00:02:43,440 Speaker 1: through your business body is money. And if the money 47 00:02:43,520 --> 00:02:46,920 Speaker 1: ain't right, sis, neither are you walk with me. Okay. 48 00:02:47,360 --> 00:02:50,440 Speaker 1: So here's the thing. I know this firsthand because I 49 00:02:50,480 --> 00:02:53,520 Speaker 1: hired an admin first, and for the first two years 50 00:02:53,560 --> 00:02:55,680 Speaker 1: of business, I did not do my taxes because who 51 00:02:55,760 --> 00:02:58,640 Speaker 1: had an accountant? Not me? I had ADMIN, and so 52 00:02:58,760 --> 00:03:01,239 Speaker 1: I was afraid. And that's not true. I had gotten 53 00:03:01,280 --> 00:03:04,280 Speaker 1: an accountant, but I had gotten one later on down 54 00:03:04,280 --> 00:03:07,280 Speaker 1: the line, and as a result, I was behind on 55 00:03:07,360 --> 00:03:09,640 Speaker 1: filing for taxes. And then I got afraid to mention 56 00:03:09,720 --> 00:03:11,560 Speaker 1: that I was behind, and it just became a mess 57 00:03:11,720 --> 00:03:14,639 Speaker 1: until my accountant, God bless his his soul, he's still here. 58 00:03:14,680 --> 00:03:17,280 Speaker 1: But Carlos hit me up because he saw me at 59 00:03:17,440 --> 00:03:20,720 Speaker 1: Shopwright literally took his car and blocked the entrant, blocked 60 00:03:20,720 --> 00:03:25,000 Speaker 1: the aisle. He said, you in my office this week. 61 00:03:25,280 --> 00:03:28,400 Speaker 1: I was like, Carlos, I'm scared to come because i 62 00:03:28,880 --> 00:03:32,240 Speaker 1: haven't done taxes since I started my business, and I'm overwhelmed, 63 00:03:32,240 --> 00:03:34,600 Speaker 1: and I don't have any receipts and I'm still using 64 00:03:34,600 --> 00:03:36,640 Speaker 1: my personal bank account to pay bills. I'm still using 65 00:03:36,640 --> 00:03:39,440 Speaker 1: my personal debit card, credit card. I'm a mess, and 66 00:03:39,560 --> 00:03:41,960 Speaker 1: I know you are too. I know you don't have 67 00:03:42,040 --> 00:03:44,560 Speaker 1: you a separate bank account, I say, you, says, I 68 00:03:44,600 --> 00:03:47,080 Speaker 1: know you're still using your personal credit card, your personal 69 00:03:47,080 --> 00:03:49,200 Speaker 1: debit card more than you are to even if you 70 00:03:49,240 --> 00:03:51,240 Speaker 1: do have a bank account. I know you're still co 71 00:03:51,400 --> 00:03:55,200 Speaker 1: mingling funds. This is what we all do, and it's 72 00:03:55,240 --> 00:03:58,920 Speaker 1: not it's not right, but it's okay. And so Carlos said, 73 00:03:58,960 --> 00:04:01,120 Speaker 1: how much do you think you? Oh, and I don't 74 00:04:01,160 --> 00:04:03,280 Speaker 1: know why, but I had convinced myself I owed eight. 75 00:04:03,640 --> 00:04:06,960 Speaker 1: I owed thirty thousand dollars in taxes. He was like, 76 00:04:07,000 --> 00:04:09,040 Speaker 1: did you even make thirty thousand? I don't know why. 77 00:04:09,680 --> 00:04:12,040 Speaker 1: I don't know why. That's the number ahead of my head. 78 00:04:12,040 --> 00:04:13,960 Speaker 1: And he was like, you don't. He said, I've done 79 00:04:13,960 --> 00:04:15,640 Speaker 1: your taxes over the last two years and you owed 80 00:04:15,640 --> 00:04:17,920 Speaker 1: about eight. And I was like, oh, that's not as bad. 81 00:04:17,960 --> 00:04:19,720 Speaker 1: Even though I didn't have eight, but still that wasn't 82 00:04:19,720 --> 00:04:21,799 Speaker 1: as bad. He said, it would have been about five, 83 00:04:22,160 --> 00:04:25,960 Speaker 1: but because of the fees and all of like, because 84 00:04:25,960 --> 00:04:28,480 Speaker 1: you haven't filed your taxes and you've been late and paying. 85 00:04:29,040 --> 00:04:31,360 Speaker 1: It went from like four points something four and a 86 00:04:31,360 --> 00:04:34,280 Speaker 1: half to five to eight, and that's when I realized, oh, 87 00:04:35,279 --> 00:04:40,480 Speaker 1: that the delay in working on getting my finances together 88 00:04:40,680 --> 00:04:43,960 Speaker 1: was costing me money, and that money cannot be reinvested 89 00:04:44,000 --> 00:04:47,160 Speaker 1: back into my business the budget Neisa. So if I 90 00:04:47,200 --> 00:04:49,000 Speaker 1: was going to go back to young be back, then 91 00:04:49,279 --> 00:04:52,160 Speaker 1: I would have said, Tiffany, you need to get your 92 00:04:52,240 --> 00:04:57,800 Speaker 1: accountant or bookkeeper, someone in that realm first and foremost 93 00:04:57,960 --> 00:05:00,599 Speaker 1: you don't need to get them like first second, but 94 00:05:00,720 --> 00:05:03,040 Speaker 1: the moment that you say to yourself, you know what, 95 00:05:03,080 --> 00:05:06,160 Speaker 1: I need to hire someone like ideally an accountant. Now 96 00:05:06,160 --> 00:05:08,000 Speaker 1: here's the thing. An accountant. The good thing is that 97 00:05:08,040 --> 00:05:10,320 Speaker 1: you meet you can meet with them quarterly, and so 98 00:05:12,080 --> 00:05:15,799 Speaker 1: prices can range anywhere from I don't know, like fifteen 99 00:05:15,880 --> 00:05:18,800 Speaker 1: hundred dollars for the year to upwards of that, you know, 100 00:05:19,160 --> 00:05:21,720 Speaker 1: and so you can save up and say, okay, before 101 00:05:21,839 --> 00:05:23,480 Speaker 1: might start my business, I know, I'm going to find 102 00:05:23,520 --> 00:05:27,000 Speaker 1: an accountant and I'm going to you know, and making 103 00:05:27,080 --> 00:05:28,880 Speaker 1: my business to be able to afford that fifteen hundred 104 00:05:28,920 --> 00:05:33,720 Speaker 1: dollars for the year, and or also potentially a bookkeeper. 105 00:05:33,760 --> 00:05:37,039 Speaker 1: That would be connestly, honestly, probably my second higher if 106 00:05:37,760 --> 00:05:42,840 Speaker 1: I had multiple streams of income. So if let's just 107 00:05:42,880 --> 00:05:44,800 Speaker 1: say I had a smaller business where maybe it's a 108 00:05:44,839 --> 00:05:47,600 Speaker 1: speaking business, I might not need a bookkeeper because it's 109 00:05:47,640 --> 00:05:50,120 Speaker 1: not like I'm speaking every single week where money is 110 00:05:50,160 --> 00:05:52,279 Speaker 1: coming in so rapidly that I need to keep track. 111 00:05:52,560 --> 00:05:54,080 Speaker 1: But let's just say I had a business where I 112 00:05:54,120 --> 00:05:57,240 Speaker 1: was selling things online and I was making you know, 113 00:05:57,560 --> 00:06:00,760 Speaker 1: ten twenty one hundred sales a month. A bookkeeper is 114 00:06:00,800 --> 00:06:05,240 Speaker 1: going to be a helpful person. And bookkeepers, you know, 115 00:06:05,360 --> 00:06:07,720 Speaker 1: you can find a bookkeeper for around four or five 116 00:06:07,760 --> 00:06:10,440 Speaker 1: hundred bucks a month, give or take, and so it's 117 00:06:10,480 --> 00:06:12,599 Speaker 1: not a little bit of money. But the reason why 118 00:06:12,600 --> 00:06:15,200 Speaker 1: bookkeepers can be so helpful is if I would have 119 00:06:15,200 --> 00:06:18,320 Speaker 1: had a bookkeeper, I wouldn't have had the issue of 120 00:06:18,440 --> 00:06:21,120 Speaker 1: not having I didn't know what to give Carlos, my accountant, 121 00:06:21,360 --> 00:06:24,240 Speaker 1: because my finances were a mess. So a bookkeeper is 122 00:06:24,240 --> 00:06:26,960 Speaker 1: what keeps you in line day to day. The bookkeeper 123 00:06:27,080 --> 00:06:30,359 Speaker 1: keeper is creating a ledger of money coming in and 124 00:06:30,400 --> 00:06:34,039 Speaker 1: money going out. They're keeping you financially organized day to day. 125 00:06:34,320 --> 00:06:37,200 Speaker 1: So that way, when it's time to file taxes, whether 126 00:06:37,240 --> 00:06:40,480 Speaker 1: it's once a quarter, every other you know, twice a year, 127 00:06:40,560 --> 00:06:44,760 Speaker 1: or once a year, the bookkeeper puts it in a 128 00:06:43,680 --> 00:06:47,920 Speaker 1: in the way that an accountant receives it. So they're 129 00:06:47,960 --> 00:06:50,560 Speaker 1: going to upload it to like quick books, or they're 130 00:06:50,560 --> 00:06:52,440 Speaker 1: going to put it in an Excel spreadsheet in the 131 00:06:52,520 --> 00:06:56,279 Speaker 1: way that accountants navigate. Now, some accountant firms were also 132 00:06:57,240 --> 00:06:59,880 Speaker 1: offer bookkeeping, so you can ask about that. But to me, 133 00:07:01,320 --> 00:07:03,640 Speaker 1: if I was hiring, like you know, and to be 134 00:07:03,720 --> 00:07:05,279 Speaker 1: very beginning, because here's the thing, you could be your 135 00:07:05,320 --> 00:07:07,640 Speaker 1: own admin. Is it a lot of work, yes, but 136 00:07:07,720 --> 00:07:10,520 Speaker 1: here's how I was my own admin. So in the beginning, 137 00:07:10,800 --> 00:07:13,760 Speaker 1: like especially when I had no no no, no new money, 138 00:07:14,200 --> 00:07:17,160 Speaker 1: what I used to do was I remember thinking to myself, 139 00:07:17,200 --> 00:07:19,320 Speaker 1: everyone is writing me, hey, Tiffany, and they're asking me 140 00:07:19,360 --> 00:07:21,960 Speaker 1: for personal favors. I wish there was someone else that 141 00:07:22,120 --> 00:07:23,960 Speaker 1: was like a middleman, so they didn't know that I 142 00:07:23,960 --> 00:07:25,600 Speaker 1: saw it, and so I was like, well, why do 143 00:07:25,680 --> 00:07:27,440 Speaker 1: they don't know who's answering this email? So I made 144 00:07:27,520 --> 00:07:29,240 Speaker 1: up an admin name. Her name is Michelle, and to 145 00:07:29,320 --> 00:07:32,000 Speaker 1: this day my admin her name is Rose for real, 146 00:07:32,080 --> 00:07:34,720 Speaker 1: but she still answers my emails as Michelle. And I've 147 00:07:34,720 --> 00:07:36,680 Speaker 1: had about five or six Michelle since I started the 148 00:07:36,720 --> 00:07:39,960 Speaker 1: business fifteen years ago, and so I was the first. Michelle. 149 00:07:40,000 --> 00:07:42,880 Speaker 1: You would email me and say, hey, Tiffany girl, real 150 00:07:42,920 --> 00:07:45,600 Speaker 1: quick favor. You could come speaking by school and Michelle 151 00:07:45,600 --> 00:07:48,760 Speaker 1: would write you, hello, Tanya, thank you so much for 152 00:07:48,760 --> 00:07:51,400 Speaker 1: reaching out to Tiffany. This is her admirin Michelle. Meanwhile, 153 00:07:51,440 --> 00:07:55,200 Speaker 1: it's me the old time. Can you please give us 154 00:07:55,240 --> 00:07:58,000 Speaker 1: the time and the date and I will check with 155 00:07:58,040 --> 00:08:00,080 Speaker 1: Tiffany to see that if it it's with her schedule. Mean, 156 00:08:00,120 --> 00:08:04,000 Speaker 1: well it's me, you know. And then people are like, oh, 157 00:08:04,080 --> 00:08:07,960 Speaker 1: excuse me, Michelle, is she available on Friday? I'll ask, 158 00:08:08,160 --> 00:08:10,240 Speaker 1: and I'm like, I'm not because Gary, I didn't want 159 00:08:10,240 --> 00:08:13,160 Speaker 1: to work for free. So Michelle over invite back. Unfortunately, 160 00:08:13,200 --> 00:08:15,560 Speaker 1: on this moment, Tiffany is not available, but please check 161 00:08:15,640 --> 00:08:18,320 Speaker 1: back in another two months. Well she has some more availability. 162 00:08:18,680 --> 00:08:22,560 Speaker 1: It created the space between me and the people emailing it, 163 00:08:22,840 --> 00:08:24,760 Speaker 1: emailing me to ask for request, and it made me 164 00:08:24,800 --> 00:08:27,280 Speaker 1: look a little more professional. Well, I even got Michelle 165 00:08:27,320 --> 00:08:30,240 Speaker 1: her own email child, Michelle at the Budgetizza dot com. 166 00:08:30,680 --> 00:08:33,720 Speaker 1: I ain't no Michelle and so, but it was so helpful. 167 00:08:33,840 --> 00:08:35,960 Speaker 1: So I learned that I could do that for myself. 168 00:08:35,960 --> 00:08:39,040 Speaker 1: But what I couldn't do was the business finances for myself, 169 00:08:39,200 --> 00:08:42,480 Speaker 1: and I'm telling you if your finances are funny, child, 170 00:08:42,559 --> 00:08:45,360 Speaker 1: I've made so many financial mistakes is my business because 171 00:08:45,360 --> 00:08:47,840 Speaker 1: I didn't learn that lesson until too late. It's cost 172 00:08:47,920 --> 00:08:50,439 Speaker 1: me hundreds of thousands of dollars, if not almost seven 173 00:08:50,440 --> 00:08:54,520 Speaker 1: figures in mistakes and tax mistakes. I finally paid my 174 00:08:54,600 --> 00:08:57,520 Speaker 1: last tax bill, it was like two hundred fifty thousand dollars. Okay, 175 00:08:57,720 --> 00:08:59,560 Speaker 1: So I'm telling you this from a place of girl, 176 00:08:59,600 --> 00:09:02,200 Speaker 1: I'll be like me. Listen to me, but don't be 177 00:09:02,320 --> 00:09:05,480 Speaker 1: like me. You know, if you're in business and you're 178 00:09:05,520 --> 00:09:09,000 Speaker 1: you're considering starting a business, you know you want right 179 00:09:09,040 --> 00:09:11,720 Speaker 1: away to separate your business funds from your personal funds, 180 00:09:11,720 --> 00:09:16,120 Speaker 1: so instantly getting two separate checking accounts, two separate deborat accounts. 181 00:09:16,360 --> 00:09:18,199 Speaker 1: You know, ideally look to see if you can get 182 00:09:18,240 --> 00:09:21,560 Speaker 1: even two separate credit cards. Sometimes that's not possible because 183 00:09:21,600 --> 00:09:23,880 Speaker 1: they won't issue you a credit card just yet. Although 184 00:09:23,920 --> 00:09:26,840 Speaker 1: there are some business secured cards where it's literally like 185 00:09:26,880 --> 00:09:29,840 Speaker 1: a credit card that you put a deposit down, and 186 00:09:29,880 --> 00:09:31,560 Speaker 1: that five hundred dollars that you put up for the 187 00:09:31,600 --> 00:09:34,200 Speaker 1: business that's the limit on your on your business credit cards. 188 00:09:34,200 --> 00:09:38,319 Speaker 1: So that's available, but separating your business and personal funds, 189 00:09:38,720 --> 00:09:41,439 Speaker 1: getting yourself an accountant first and foremost, and you may 190 00:09:41,520 --> 00:09:44,080 Speaker 1: or may not need a bookkeeper. And then as you 191 00:09:44,120 --> 00:09:46,760 Speaker 1: grow you might need other financial people. But that would 192 00:09:46,760 --> 00:09:50,520 Speaker 1: be my first hire. And you know, hiring is not easy. 193 00:09:50,559 --> 00:09:53,439 Speaker 1: And then you know, if you don't have any additional money, 194 00:09:53,480 --> 00:09:55,720 Speaker 1: consider interns. Interns are a great way to learn how 195 00:09:55,720 --> 00:10:00,440 Speaker 1: to lead, to learn how to defer, and to to 196 00:10:00,600 --> 00:10:04,240 Speaker 1: give instruction to you know, interns. There's a great website. 197 00:10:04,280 --> 00:10:07,240 Speaker 1: I'm gonna find it. I'm gonna my sister Tracey, who's 198 00:10:07,240 --> 00:10:09,679 Speaker 1: like also a publicist. This is great website where she 199 00:10:09,760 --> 00:10:14,920 Speaker 1: finds interns who they do it for class credit. You know, 200 00:10:15,360 --> 00:10:16,560 Speaker 1: I'm gonna find it and we'll put it in the 201 00:10:16,559 --> 00:10:19,560 Speaker 1: show notes. But interns are a great place to start 202 00:10:19,600 --> 00:10:22,560 Speaker 1: to But know that interns are typically only there for 203 00:10:22,559 --> 00:10:24,160 Speaker 1: like a semester, so three or four months, so you 204 00:10:24,200 --> 00:10:26,960 Speaker 1: can't be living and dying off interns. But and interns 205 00:10:26,960 --> 00:10:29,160 Speaker 1: are a great way to find some good people that 206 00:10:29,240 --> 00:10:31,920 Speaker 1: I've hired interns after they've interned for me for a while. 207 00:10:32,360 --> 00:10:35,480 Speaker 1: So but hopefully that was helpful. I know it was, girl, 208 00:10:35,480 --> 00:10:37,600 Speaker 1: because you don't know what I'm talking about fifteen years 209 00:10:37,600 --> 00:10:39,920 Speaker 1: in the game, forty million dollars later, I have learned 210 00:10:39,920 --> 00:10:41,920 Speaker 1: all the mistakes the hard way, so you don't have 211 00:10:42,000 --> 00:10:45,920 Speaker 1: to if you are someone who was like, ough girl, 212 00:10:46,000 --> 00:10:48,440 Speaker 1: I want to start a business, you know, or my 213 00:10:48,520 --> 00:10:51,000 Speaker 1: business is you know, up and running, but I don't 214 00:10:51,000 --> 00:10:53,440 Speaker 1: really know what I'm doing, or I need some mentorship. 215 00:10:53,920 --> 00:10:58,720 Speaker 1: Mentorship is so critically important. Then head on over to 216 00:10:58,960 --> 00:11:03,040 Speaker 1: my men, to Tiffany dot com and join our Patreon. 217 00:11:03,240 --> 00:11:05,360 Speaker 1: It's only ten bucks a month, but if I'm being honest, 218 00:11:05,920 --> 00:11:08,360 Speaker 1: it's going up to twenty bucks a month, but the 219 00:11:08,400 --> 00:11:11,000 Speaker 1: old people will be grandfathered in. I think actually is 220 00:11:11,040 --> 00:11:13,320 Speaker 1: going up next month. I don't know when this is 221 00:11:13,320 --> 00:11:15,880 Speaker 1: gonna air, but y'all, so if you want to lock 222 00:11:15,920 --> 00:11:17,599 Speaker 1: yourself in ten bucks a month, it will always be 223 00:11:17,640 --> 00:11:19,120 Speaker 1: ten bucks a month for those who signed up for 224 00:11:19,120 --> 00:11:20,800 Speaker 1: ten bucks a month, and it'll go up for the 225 00:11:20,800 --> 00:11:24,600 Speaker 1: new people later. But yeah, you can join us at 226 00:11:24,679 --> 00:11:27,200 Speaker 1: my mentor tiffany dot com link. In the show notes, 227 00:11:27,600 --> 00:11:31,480 Speaker 1: We're gonna take a blizzy black break and come back 228 00:11:31,600 --> 00:11:34,760 Speaker 1: with the money question, and it's actually a really good one, 229 00:11:35,320 --> 00:11:37,520 Speaker 1: and I'll be back in black. Y'all. Don't tell many, 230 00:11:37,520 --> 00:11:39,439 Speaker 1: I've been acting up too much time. I've been good. 231 00:11:39,800 --> 00:11:41,719 Speaker 1: I've been real good. All right, see you in a 232 00:11:41,800 --> 00:11:50,480 Speaker 1: minute and we're back and black and black. So, first 233 00:11:50,480 --> 00:11:52,280 Speaker 1: of all, shout out to this lip that I'm wearing, 234 00:11:52,640 --> 00:11:55,959 Speaker 1: because so y'all know we have this super dope black 235 00:11:56,960 --> 00:12:01,560 Speaker 1: um producer her name is Emaney. Annie Mandy was like, yes, lip, 236 00:12:01,679 --> 00:12:04,880 Speaker 1: I just love black women because we compliment you like 237 00:12:04,960 --> 00:12:08,640 Speaker 1: for what you have on Yes, bun okay, skin brown 238 00:12:08,920 --> 00:12:12,440 Speaker 1: see you. I just love being black yp So she 239 00:12:12,600 --> 00:12:15,719 Speaker 1: was like, okay with these lips, and because we love 240 00:12:15,800 --> 00:12:19,839 Speaker 1: black around here, my lip is by If you was 241 00:12:19,880 --> 00:12:21,520 Speaker 1: watching us on YouTube, you would be able to see it. 242 00:12:21,559 --> 00:12:24,920 Speaker 1: But you know, my lip is by this black owned 243 00:12:26,440 --> 00:12:29,160 Speaker 1: I guess health and beauty brand called the lip Bar. 244 00:12:29,520 --> 00:12:32,679 Speaker 1: And actually, no, Melissa personally, she's super dope black woman 245 00:12:32,720 --> 00:12:36,040 Speaker 1: in business. She actually was rejected on Shark Tank, but 246 00:12:36,080 --> 00:12:39,240 Speaker 1: when Jesus said yes, nobody say no. So she has 247 00:12:39,240 --> 00:12:41,400 Speaker 1: grown her business to be this multimillion dollar business that 248 00:12:41,480 --> 00:12:45,880 Speaker 1: is available at Target's. She actually Melissa is from Detroit, 249 00:12:45,920 --> 00:12:47,880 Speaker 1: from the d and I've been to the Lip Bar 250 00:12:47,920 --> 00:12:51,319 Speaker 1: in Detroit. It's super cute. And so I'm wearing guess 251 00:12:51,320 --> 00:12:54,680 Speaker 1: what the let me tell you how I am right 252 00:12:54,720 --> 00:12:57,760 Speaker 1: on point right here. So the lip color I'm wearing 253 00:12:57,880 --> 00:13:01,679 Speaker 1: is called rich Auntie, and that ain't the truth, okay, 254 00:13:01,760 --> 00:13:04,000 Speaker 1: because lord knows I'm a rich Aunty. So it's really pretty. 255 00:13:04,040 --> 00:13:09,400 Speaker 1: It's like this, like it's a very pinky red, so 256 00:13:09,640 --> 00:13:13,040 Speaker 1: you know. And my liner is Mac but whatever. You know, 257 00:13:13,080 --> 00:13:15,480 Speaker 1: we're not gonna give back too much because it's hyperworld 258 00:13:15,559 --> 00:13:17,600 Speaker 1: via Mac whatever. But we really here for the lip 259 00:13:17,679 --> 00:13:19,680 Speaker 1: bar rich Aunty. Okay. That's one of my favorite colors, 260 00:13:19,760 --> 00:13:23,040 Speaker 1: is one of her best sellers. So let's get into 261 00:13:23,080 --> 00:13:27,400 Speaker 1: the money question of today. So this question comes from 262 00:13:27,520 --> 00:13:30,840 Speaker 1: Naya Hi, and Naya you see what I did there? 263 00:13:31,480 --> 00:13:35,480 Speaker 1: So Nya says, hey, Tiff and Mandy, I am twenty 264 00:13:35,600 --> 00:13:38,720 Speaker 1: nine years old, and until I found this podcast about 265 00:13:38,760 --> 00:13:42,240 Speaker 1: six months ago, no one all caps, I repeat again, 266 00:13:42,559 --> 00:13:45,640 Speaker 1: all caps, no one has been able to make me 267 00:13:45,920 --> 00:13:51,400 Speaker 1: one care about to feel educated and empowered about my money. Nay, 268 00:13:51,440 --> 00:13:53,640 Speaker 1: your girl, don't have me crying up here. Naya Okay, 269 00:13:54,120 --> 00:13:57,319 Speaker 1: She says, I struggled with math since I was younger 270 00:13:57,360 --> 00:14:00,200 Speaker 1: and often felt discouraged for my ability to manage my money. 271 00:14:00,240 --> 00:14:03,840 Speaker 1: Oh mama, but you all use language and concepts that 272 00:14:03,960 --> 00:14:06,079 Speaker 1: really help me to get it. Yes, that's what we're 273 00:14:06,120 --> 00:14:09,280 Speaker 1: here for, Naya, She says, I have a question for 274 00:14:09,320 --> 00:14:11,640 Speaker 1: the baqa that's a little dance to the tune of 275 00:14:11,679 --> 00:14:15,520 Speaker 1: Tiffany's song. Why the ba qa a to b a 276 00:14:15,880 --> 00:14:19,640 Speaker 1: q a? What you say? I love that you love 277 00:14:19,680 --> 00:14:22,440 Speaker 1: that song because I feel like Meddie hates it, but 278 00:14:22,480 --> 00:14:25,440 Speaker 1: it's here to stay. Oh no, she dover hate it, 279 00:14:26,360 --> 00:14:29,160 Speaker 1: so she said. I recently started a new job. I'm 280 00:14:29,200 --> 00:14:33,040 Speaker 1: trying to be intentional about my retirement options. Good, Naya. 281 00:14:33,760 --> 00:14:36,240 Speaker 1: I have a decent sized rollover for my last four 282 00:14:36,320 --> 00:14:39,960 Speaker 1: one K about fifty five hundred invested. Okay? Good. I 283 00:14:40,000 --> 00:14:41,920 Speaker 1: was told I have two options. You actually have more, 284 00:14:41,960 --> 00:14:45,160 Speaker 1: but that's okay. One opened a rollover IRA with my 285 00:14:45,240 --> 00:14:48,480 Speaker 1: personal bank so that it's always there if and when 286 00:14:48,480 --> 00:14:51,000 Speaker 1: I changed jobs, or two roll it over into my 287 00:14:51,080 --> 00:14:54,080 Speaker 1: new jobs four one K plan I have have, I said, 288 00:14:54,160 --> 00:14:57,160 Speaker 1: rollover enough. I'm trying not to get text y'all taught 289 00:14:57,200 --> 00:14:59,560 Speaker 1: me that. Yes, girl. What are some of the advantages 290 00:14:59,600 --> 00:15:01,920 Speaker 1: of a true additional IRA versus keeping the money in 291 00:15:01,960 --> 00:15:04,720 Speaker 1: a four one K or vice versa? Is it better 292 00:15:04,800 --> 00:15:06,560 Speaker 1: to have two accounts? Or just keep all of my 293 00:15:06,680 --> 00:15:08,960 Speaker 1: retirement funds in one account. Thanks for all that you 294 00:15:09,000 --> 00:15:12,080 Speaker 1: do to educate our community. Ny, your girl. First of all, 295 00:15:12,200 --> 00:15:14,440 Speaker 1: we're gonna give you a round of applause for thinking 296 00:15:14,440 --> 00:15:17,960 Speaker 1: about this ahead of time, for understanding that you can 297 00:15:17,960 --> 00:15:24,400 Speaker 1: trigger a tax, an unwanted tax trigger, you know, if 298 00:15:24,440 --> 00:15:26,200 Speaker 1: you don't do this correctly. So I'm glad that you're 299 00:15:26,200 --> 00:15:27,960 Speaker 1: asking this question and we're gonna get you straight. So 300 00:15:28,000 --> 00:15:29,920 Speaker 1: there are actually multiple things you can do. So let's 301 00:15:29,960 --> 00:15:34,760 Speaker 1: go over. There are five things you can do. So one, 302 00:15:35,000 --> 00:15:37,360 Speaker 1: you can leave your money in your current four one 303 00:15:37,480 --> 00:15:41,800 Speaker 1: K plan. But you know the problem is is that 304 00:15:41,960 --> 00:15:46,120 Speaker 1: like like the pro is I guess it's just convenient, 305 00:15:46,240 --> 00:15:48,840 Speaker 1: but the cond is child you know, one, you can't 306 00:15:48,840 --> 00:15:53,000 Speaker 1: contribute to that plan anymore. So by two, they might 307 00:15:53,040 --> 00:15:55,280 Speaker 1: actually charge you additional fees because you're no longer an 308 00:15:55,280 --> 00:15:59,960 Speaker 1: employee and who wants to manage multiple like you know, 309 00:16:00,160 --> 00:16:02,400 Speaker 1: I rate or four one K plans are two different companies. 310 00:16:02,480 --> 00:16:05,200 Speaker 1: So we're that is an option. But because I want 311 00:16:05,240 --> 00:16:07,360 Speaker 1: you to know that there's options, there are about four options. 312 00:16:07,400 --> 00:16:10,360 Speaker 1: But we're not doing that. Okay, she can't sit with us. 313 00:16:10,440 --> 00:16:12,800 Speaker 1: We're not leaving your current four one K plan where 314 00:16:12,800 --> 00:16:18,120 Speaker 1: it is buy okay two option two, you can roll 315 00:16:18,120 --> 00:16:20,520 Speaker 1: it into a new four to oh one K plan. 316 00:16:20,600 --> 00:16:22,280 Speaker 1: This is one of the options that you brought up, 317 00:16:22,680 --> 00:16:25,800 Speaker 1: and so here's some of the pros. So assuming that 318 00:16:25,840 --> 00:16:28,080 Speaker 1: you like the new plans, the costs and the features 319 00:16:28,080 --> 00:16:30,800 Speaker 1: and the investment choices, this can be a good option. Right, 320 00:16:30,840 --> 00:16:33,800 Speaker 1: So your savings has the potential for growth, and that's 321 00:16:33,800 --> 00:16:36,400 Speaker 1: it's tax deferred, meaning like you don't have to pay 322 00:16:36,440 --> 00:16:38,960 Speaker 1: taxes on it now because you know with four one 323 00:16:39,040 --> 00:16:41,440 Speaker 1: ks you don't pay taxes now. You pay taxes when 324 00:16:41,480 --> 00:16:44,400 Speaker 1: you pull it out, and so you can continue and 325 00:16:44,440 --> 00:16:47,120 Speaker 1: if you continue to work for the company, then you 326 00:16:47,120 --> 00:16:48,760 Speaker 1: know you could just continue to add to that four 327 00:16:48,800 --> 00:16:51,000 Speaker 1: one K plan. Those are some of the pros. Is 328 00:16:51,000 --> 00:16:53,920 Speaker 1: that everything is right there. You know, you know you 329 00:16:53,960 --> 00:16:55,640 Speaker 1: probably will have the same protections that you had at 330 00:16:55,640 --> 00:16:58,360 Speaker 1: your other FOREU one K plan. The cons is that 331 00:16:58,400 --> 00:17:00,680 Speaker 1: you're going to need to liquidate your current for one 332 00:17:00,760 --> 00:17:03,760 Speaker 1: K investment and reinvest it into your new four one 333 00:17:03,840 --> 00:17:07,560 Speaker 1: K plan and the new money, this money that's going 334 00:17:07,640 --> 00:17:10,000 Speaker 1: to be rolled over will be subject to your new 335 00:17:10,000 --> 00:17:13,480 Speaker 1: plans with draw rules, so you know you likely whatever. 336 00:17:13,520 --> 00:17:15,160 Speaker 1: Once you locked that money in there, you're not gonna 337 00:17:15,160 --> 00:17:17,000 Speaker 1: be able to typically take it with you unless you 338 00:17:17,080 --> 00:17:19,119 Speaker 1: leave your employer. But I mean, I think that's a 339 00:17:19,160 --> 00:17:20,720 Speaker 1: con that you kind of know, like I'm gonna put 340 00:17:20,720 --> 00:17:23,399 Speaker 1: my money here and leave my money here. So you 341 00:17:23,440 --> 00:17:25,520 Speaker 1: can leave your money with this, you could roll it 342 00:17:25,520 --> 00:17:28,080 Speaker 1: over to this new place. The key that's really critical 343 00:17:28,560 --> 00:17:31,760 Speaker 1: is that you are not to do the rollover yourself. 344 00:17:32,160 --> 00:17:35,120 Speaker 1: The bank has to talk to the bank, so they're 345 00:17:35,160 --> 00:17:38,400 Speaker 1: going to tell you, like, I just rolled over some money, right, 346 00:17:38,720 --> 00:17:41,240 Speaker 1: So it wasn't for me to like cash out the 347 00:17:41,240 --> 00:17:44,080 Speaker 1: money and say, here's thirty thousand dollars. Got no, no, no, no, no, 348 00:17:44,560 --> 00:17:47,280 Speaker 1: Like literally, they're going to do themselves and give you 349 00:17:47,400 --> 00:17:50,280 Speaker 1: clear directions. For one. For me, for example, they actually 350 00:17:50,320 --> 00:17:53,119 Speaker 1: sent me a check that was not for me. It 351 00:17:53,160 --> 00:17:54,919 Speaker 1: did not even have my name on it, but it 352 00:17:54,960 --> 00:17:57,760 Speaker 1: really was for my new plan. And I was literally 353 00:17:57,800 --> 00:18:00,199 Speaker 1: supposed to mail the check to the new people. That 354 00:18:00,320 --> 00:18:02,080 Speaker 1: was it. I was like, just just to hold the 355 00:18:02,200 --> 00:18:03,919 Speaker 1: check and mail it to the new people, if that 356 00:18:03,960 --> 00:18:05,800 Speaker 1: makes sense. So you just want to make sure that 357 00:18:06,320 --> 00:18:09,840 Speaker 1: in rolling over whatever you choose, that you don't accidentally 358 00:18:09,880 --> 00:18:14,040 Speaker 1: trigger a tax and fee of You don't want to 359 00:18:14,040 --> 00:18:16,760 Speaker 1: trigger any of that because one, you're not fifty nine 360 00:18:16,800 --> 00:18:18,680 Speaker 1: and a half, so if you take any money now 361 00:18:19,040 --> 00:18:21,560 Speaker 1: you're going to be, there's a fee attached to that. 362 00:18:21,840 --> 00:18:24,920 Speaker 1: And then two, like just like when you are fifty 363 00:18:25,000 --> 00:18:26,800 Speaker 1: nine and a half and sixty and sixty five, if 364 00:18:26,840 --> 00:18:28,679 Speaker 1: you take your money out, you have to pay taxes 365 00:18:28,720 --> 00:18:31,280 Speaker 1: on the money either way, so you will be paying twice. 366 00:18:31,440 --> 00:18:33,840 Speaker 1: So you don't want to make that mistake. So this 367 00:18:33,960 --> 00:18:36,200 Speaker 1: is a viable option rolling over into your four to 368 00:18:36,200 --> 00:18:38,800 Speaker 1: one K plan. Now there's nothing wrong. I don't think anything. 369 00:18:38,920 --> 00:18:41,719 Speaker 1: There's nothing negative here. You just have to decide. So 370 00:18:41,920 --> 00:18:45,960 Speaker 1: number three is you can roll it over into a 371 00:18:46,040 --> 00:18:50,240 Speaker 1: traditional individual retirement account. So that's an IRA. So you 372 00:18:50,280 --> 00:18:53,200 Speaker 1: have a four oh one K and IRA is basically 373 00:18:53,280 --> 00:18:56,040 Speaker 1: like a four on one K that you have at 374 00:18:56,119 --> 00:18:58,720 Speaker 1: your it's not buy an employer, it's with your bank. 375 00:18:59,000 --> 00:19:01,880 Speaker 1: So because iras are not sponsored by employers, you own 376 00:19:01,920 --> 00:19:04,159 Speaker 1: them directly. You won't have to worry about making changes 377 00:19:04,200 --> 00:19:06,800 Speaker 1: to your account should you change jobs again in the future. 378 00:19:06,840 --> 00:19:09,520 Speaker 1: So this is a pro and the IRA provider might 379 00:19:09,560 --> 00:19:12,679 Speaker 1: offer you a bigger arrange, like a wider arrange of 380 00:19:12,720 --> 00:19:16,600 Speaker 1: investment options and services than your new employer. So many 381 00:19:16,720 --> 00:19:19,639 Speaker 1: times for one k's will just have mutual funds, and 382 00:19:19,720 --> 00:19:24,440 Speaker 1: mutual funds typically have higher fees because a mutual fund 383 00:19:24,760 --> 00:19:28,040 Speaker 1: typically the the investments inside of a mutual fund are 384 00:19:28,119 --> 00:19:32,240 Speaker 1: picked by people, right, and so when someone gets involved, 385 00:19:32,240 --> 00:19:34,679 Speaker 1: they want to get paid, and so as a result 386 00:19:34,760 --> 00:19:37,840 Speaker 1: of that, mutual funds have higher fees that are called oh, 387 00:19:37,920 --> 00:19:39,480 Speaker 1: of course, I forgot the name of the dam fees. 388 00:19:39,800 --> 00:19:42,480 Speaker 1: Either way, they're called fees, but it's like a special fee, 389 00:19:42,520 --> 00:19:45,880 Speaker 1: a special name for those fees. But so there might 390 00:19:45,920 --> 00:19:47,760 Speaker 1: be so you might want to compare. If it was me, 391 00:19:47,880 --> 00:19:50,280 Speaker 1: I would compare. You know, here's the bank where I bank? 392 00:19:50,640 --> 00:19:52,880 Speaker 1: Let me see your IRA? What are your fees? Four 393 00:19:52,920 --> 00:19:54,960 Speaker 1: one K? At my new job, what are your fees? 394 00:19:55,000 --> 00:19:56,960 Speaker 1: And then what are my investment options? Do you just have? 395 00:19:57,680 --> 00:20:00,399 Speaker 1: You know, the investment options at your four K are 396 00:20:00,440 --> 00:20:03,600 Speaker 1: probably pretty limited, they typically are, but iras are usually 397 00:20:03,600 --> 00:20:06,880 Speaker 1: pretty broad. But broad might not be good if you're 398 00:20:06,920 --> 00:20:09,320 Speaker 1: going to be overwhelmed in choices. Okay, so the pros 399 00:20:09,359 --> 00:20:13,040 Speaker 1: are maybe a lot lower fees, bigger investment options. Some 400 00:20:13,119 --> 00:20:15,320 Speaker 1: of the cons are Once you roll over your funds 401 00:20:15,359 --> 00:20:18,240 Speaker 1: into an IRA, they may no longer be eligible for 402 00:20:18,280 --> 00:20:20,600 Speaker 1: a few future rollovers into a four one K plan, 403 00:20:21,040 --> 00:20:23,199 Speaker 1: you know. So what that just means is, let's just 404 00:20:23,200 --> 00:20:24,880 Speaker 1: say later you're like, Oh, I'm at this new job 405 00:20:24,920 --> 00:20:26,679 Speaker 1: and I really like them and I love the choices 406 00:20:26,720 --> 00:20:28,880 Speaker 1: they have. I want to take my IRA money out 407 00:20:28,920 --> 00:20:31,040 Speaker 1: of my personal bank and then put it into a 408 00:20:31,080 --> 00:20:33,280 Speaker 1: four one K plan at this new new job. You 409 00:20:33,359 --> 00:20:35,280 Speaker 1: probably won't be able to do that, but that's okay. 410 00:20:35,920 --> 00:20:39,639 Speaker 1: You also need to specify how the funds are invested. 411 00:20:39,800 --> 00:20:42,080 Speaker 1: This is where people get hung up and you don't 412 00:20:42,119 --> 00:20:44,840 Speaker 1: do it. The money is literally going to be sitting 413 00:20:44,880 --> 00:20:49,199 Speaker 1: as cash, literally losing its value via inflation, so you 414 00:20:49,359 --> 00:20:52,200 Speaker 1: have to put money. You have to invest it actively, 415 00:20:52,600 --> 00:20:55,639 Speaker 1: you know. So, like I said before, so the pros 416 00:20:55,680 --> 00:20:59,119 Speaker 1: here are likely lower fees potentially, but you're going to 417 00:20:59,200 --> 00:21:03,120 Speaker 1: check on them and also bigger investment options. The cons 418 00:21:03,400 --> 00:21:06,080 Speaker 1: for rolling it over into an IRA, your own personal 419 00:21:06,119 --> 00:21:08,639 Speaker 1: IRA are that you won't be able to roll it 420 00:21:08,640 --> 00:21:10,480 Speaker 1: over likely to a four to win K ever again, 421 00:21:11,000 --> 00:21:13,600 Speaker 1: and that's not so bad. But also if you're someone 422 00:21:13,640 --> 00:21:16,400 Speaker 1: who can't pick investments, you're not really sure you won't 423 00:21:16,400 --> 00:21:19,320 Speaker 1: have to pick, so you know asking yourself, are you 424 00:21:19,560 --> 00:21:21,960 Speaker 1: are you? Do you feel comfortable doing that? So that's 425 00:21:21,960 --> 00:21:25,960 Speaker 1: the third option, right, So number four, you can convert 426 00:21:26,000 --> 00:21:30,359 Speaker 1: it into a wroth ira, now a wroth ira. The 427 00:21:30,400 --> 00:21:34,159 Speaker 1: difference between wroth and regular ira and an ira is 428 00:21:34,200 --> 00:21:36,360 Speaker 1: you get the tax benefit up front. You don't pay 429 00:21:36,400 --> 00:21:39,840 Speaker 1: taxes now, you pay taxes later. The wroth ira you 430 00:21:39,920 --> 00:21:42,520 Speaker 1: do pay taxes now on the money that you put 431 00:21:42,520 --> 00:21:45,199 Speaker 1: into that wroth ira, and then later when you withdraw it, 432 00:21:45,200 --> 00:21:48,480 Speaker 1: you don't pay taxes later. Okay. So the pros are 433 00:21:48,800 --> 00:21:52,280 Speaker 1: the withdrawals are entirely tax free in retirement as long 434 00:21:52,320 --> 00:21:54,360 Speaker 1: as you're over fifty nine and a half and you've 435 00:21:54,400 --> 00:21:57,920 Speaker 1: held the account for five years or more. Okay. Now 436 00:21:57,960 --> 00:22:01,840 Speaker 1: the cons are, because wroth iray's funded with after tax dollars, 437 00:22:01,960 --> 00:22:04,040 Speaker 1: you're going to have to pay taxes on the money 438 00:22:04,040 --> 00:22:05,920 Speaker 1: in your four one K that's you're rolling over. You're 439 00:22:05,920 --> 00:22:07,960 Speaker 1: gonna have to pay the taxes now. So it's like, 440 00:22:08,000 --> 00:22:09,240 Speaker 1: let's just say you're you know, you're taking out this 441 00:22:09,240 --> 00:22:11,639 Speaker 1: fifty five hundred. I don't know what the tax rate is. 442 00:22:11,680 --> 00:22:14,080 Speaker 1: Let's just say they say you're taking out one thousand 443 00:22:14,119 --> 00:22:16,480 Speaker 1: dollars from that. You pay taxes now you put it 444 00:22:16,480 --> 00:22:19,040 Speaker 1: into your wraw and wouldn't pay taxes later. A raw 445 00:22:19,119 --> 00:22:20,920 Speaker 1: iray must be opened for five years in order to 446 00:22:20,960 --> 00:22:23,800 Speaker 1: withdraw earnings tax free, and you're going to be subject 447 00:22:23,840 --> 00:22:26,639 Speaker 1: to that ten percent penalty if you would draw your money, 448 00:22:26,640 --> 00:22:29,040 Speaker 1: any money before you're fifty nine and a half. So 449 00:22:29,080 --> 00:22:30,760 Speaker 1: that's just in general, that's why I said, you don't 450 00:22:30,760 --> 00:22:33,200 Speaker 1: want to cash out because there's a ten percent penalty 451 00:22:33,240 --> 00:22:35,479 Speaker 1: plus whatever the taxes are you're going to pay so 452 00:22:35,720 --> 00:22:38,320 Speaker 1: raw iray. So this to me is not my fave 453 00:22:38,760 --> 00:22:41,520 Speaker 1: because you know, like you're you're already in the IRA 454 00:22:41,680 --> 00:22:43,919 Speaker 1: four one K space where you haven't paid taxes, so 455 00:22:43,920 --> 00:22:45,560 Speaker 1: I probably wouldn't consider it, but I want you to 456 00:22:45,560 --> 00:22:49,040 Speaker 1: know it's available, and the last thing that you can do, 457 00:22:49,080 --> 00:22:52,239 Speaker 1: the fifth option is the cash out, right, So that 458 00:22:52,400 --> 00:22:56,080 Speaker 1: just means that you are just going to take the money, 459 00:22:56,280 --> 00:22:58,120 Speaker 1: you know, like the pros are like you could take 460 00:22:58,119 --> 00:23:01,680 Speaker 1: the money. I think like after you turn fifty five, 461 00:23:01,960 --> 00:23:03,600 Speaker 1: you could take the money from your four one K 462 00:23:03,720 --> 00:23:05,200 Speaker 1: and just cash it out. But you sound like you're 463 00:23:05,240 --> 00:23:07,400 Speaker 1: twenty nine, So that's that's a prob but not really 464 00:23:07,400 --> 00:23:11,359 Speaker 1: for you. But the cons are your withdrawals are subject 465 00:23:11,440 --> 00:23:14,520 Speaker 1: to a mandatary twenty percent federal withholding and in some 466 00:23:14,560 --> 00:23:18,960 Speaker 1: cases state withholdings. So you might, you know, like it's 467 00:23:18,960 --> 00:23:21,400 Speaker 1: gonna be taxed with like you're gonna be tax plus 468 00:23:22,240 --> 00:23:24,479 Speaker 1: a penalty if you're under the age of fifty nine 469 00:23:24,480 --> 00:23:26,359 Speaker 1: and a half, which is across the board. And so 470 00:23:26,480 --> 00:23:29,399 Speaker 1: the cons for taking out your money now are and 471 00:23:29,480 --> 00:23:31,520 Speaker 1: I did this, so don't do this. I did this. 472 00:23:31,560 --> 00:23:34,000 Speaker 1: I was thirty, was about your age. I was thirty. 473 00:23:34,080 --> 00:23:38,040 Speaker 1: I was leaving my well, my preschool. I was a 474 00:23:38,040 --> 00:23:41,040 Speaker 1: preschool teacher, and my school closed its doors because they 475 00:23:41,080 --> 00:23:44,280 Speaker 1: lost their funding. And I had about thirty thousand dollars 476 00:23:44,280 --> 00:23:47,959 Speaker 1: in my accocks. I taught for like ten years in 477 00:23:48,000 --> 00:23:49,520 Speaker 1: my four one K. It was a four to three 478 00:23:49,600 --> 00:23:52,159 Speaker 1: B which is basically like a four one K for nonprofits. 479 00:23:52,520 --> 00:23:55,320 Speaker 1: And I didn't have any money because it was a recession, 480 00:23:55,800 --> 00:23:57,960 Speaker 1: and I took all the money out and I lost 481 00:23:57,960 --> 00:23:59,480 Speaker 1: so much of it because I had to pay taxes 482 00:23:59,520 --> 00:24:01,960 Speaker 1: on it, and I had to pay that ten percent penalty. 483 00:24:02,280 --> 00:24:03,960 Speaker 1: And so I'm telling this from a place of where 484 00:24:04,000 --> 00:24:07,040 Speaker 1: I've been. Don't go there. So the two options are 485 00:24:07,440 --> 00:24:10,440 Speaker 1: to me, you know, I'm not giving you financial advice, 486 00:24:10,440 --> 00:24:12,040 Speaker 1: because you got to get that financial advice from people 487 00:24:12,080 --> 00:24:14,320 Speaker 1: that you pay for financial advice. But if this was 488 00:24:14,480 --> 00:24:17,119 Speaker 1: Moah looking back at thirty year old Tipping, when I 489 00:24:17,119 --> 00:24:20,359 Speaker 1: was making the choices, I would be leaning into rolling 490 00:24:20,440 --> 00:24:23,760 Speaker 1: it over potentially to my new four one K plan 491 00:24:23,800 --> 00:24:30,160 Speaker 1: at my new job and or opening up a personal IRA. 492 00:24:30,760 --> 00:24:32,840 Speaker 1: And the thing that would help me make the decision 493 00:24:33,040 --> 00:24:37,120 Speaker 1: is who has more fees and do I feel comfortable 494 00:24:37,160 --> 00:24:41,280 Speaker 1: making my own investment choices in my IRA. If I don't, 495 00:24:41,720 --> 00:24:43,240 Speaker 1: then I might go with the four one K. If 496 00:24:43,240 --> 00:24:45,000 Speaker 1: I do, then I would go with the IRA, especially 497 00:24:45,040 --> 00:24:46,800 Speaker 1: if the fees are low. These are the things that 498 00:24:46,840 --> 00:24:48,399 Speaker 1: would be thinking. So I'm not here to tell you 499 00:24:48,440 --> 00:24:50,359 Speaker 1: what to choose. I'm here to give you information so 500 00:24:50,400 --> 00:24:54,520 Speaker 1: you could choose what's best for you. Sis Okay, Naya 501 00:24:55,520 --> 00:24:59,399 Speaker 1: and Naya, I don't know this stuff. I do. So 502 00:24:59,480 --> 00:25:01,720 Speaker 1: hopefully that was really helpful, not just for you, Naya, 503 00:25:01,760 --> 00:25:05,560 Speaker 1: but for the listeners at Lord. If you have a 504 00:25:05,600 --> 00:25:09,240 Speaker 1: b a q A A b a q A what 505 00:25:09,400 --> 00:25:12,479 Speaker 1: to say A b a Q eight with mandate b 506 00:25:12,600 --> 00:25:15,920 Speaker 1: a Q eight with Tiffany, you can go to brand 507 00:25:15,960 --> 00:25:19,760 Speaker 1: Ambition podcast dot com and you can click like the 508 00:25:19,800 --> 00:25:23,080 Speaker 1: contact us button and ask your question there. You can 509 00:25:23,160 --> 00:25:26,000 Speaker 1: hit us up on Instagram we are the BA podcast, 510 00:25:26,080 --> 00:25:28,480 Speaker 1: or no, we are Brand and Bichon podcast. On i 511 00:25:28,600 --> 00:25:31,600 Speaker 1: G you can message us we are the BA podcast 512 00:25:31,680 --> 00:25:36,680 Speaker 1: on the twitters. We are all sell brand and Vision 513 00:25:36,680 --> 00:25:39,280 Speaker 1: podcasts at gmail dot com, so you can email us, 514 00:25:39,800 --> 00:25:42,679 Speaker 1: message us, get to us across the board, you know, 515 00:25:43,480 --> 00:25:46,720 Speaker 1: go ahead on and get you this lip rich Auntie 516 00:25:46,760 --> 00:25:50,680 Speaker 1: by the lipbar. Okay, because it's serving for the gauds. 517 00:25:51,800 --> 00:25:53,920 Speaker 1: Ask your questions if you want to be a mentee, 518 00:25:53,960 --> 00:25:55,240 Speaker 1: like I said, the link will be in a bio 519 00:25:55,280 --> 00:25:59,720 Speaker 1: show notes my mentor Tiffany dot com. And yeah, hopefully 520 00:26:00,200 --> 00:26:02,440 Speaker 1: you like it here. Hopefully you love it here because 521 00:26:02,440 --> 00:26:05,480 Speaker 1: it's cutely here or whatever. And so I love your questions. 522 00:26:05,560 --> 00:26:07,719 Speaker 1: Keep asking them and keep coming back and tell a 523 00:26:07,760 --> 00:26:10,360 Speaker 1: friend have you told your bestdiet to listen to BAQA? 524 00:26:10,560 --> 00:26:14,199 Speaker 1: Have you forwarded her the actual podcast? Don't be stingy sis, 525 00:26:14,520 --> 00:26:19,560 Speaker 1: share the wealth all right until next week? Bye? Hey, 526 00:26:19,600 --> 00:26:22,400 Speaker 1: BA fam. We could not do this show without your 527 00:26:22,480 --> 00:26:25,320 Speaker 1: support or the support of our team behind the scenes. 528 00:26:25,640 --> 00:26:28,960 Speaker 1: The Brown Ambition Podcast is produced by Imani Crosby and 529 00:26:29,040 --> 00:26:32,600 Speaker 1: Dennis Stanplinsky is our in house tech guru. I am 530 00:26:32,600 --> 00:26:35,240 Speaker 1: your co host, Mandy Woodrif Santos, and we will see 531 00:26:35,280 --> 00:26:39,200 Speaker 1: y'all next week. BA FAM