WEBVTT - BA Q&A: Pay Your Taxes 0:00:06.320 --> 0:00:10.080 It's time for the big a qa A to b 0:00:10.200 --> 0:00:13.520 a qa what you say, the b a qa no 0:00:13.720 --> 0:00:17.120 man day, but the b a Q eight with Tiffany, 0:00:17.440 --> 0:00:21.279 the Big a Q eight with Tiffany. Hey. So Mandy's 0:00:21.320 --> 0:00:23.919 off the stew hopefully she's dropping that baby as we 0:00:23.920 --> 0:00:26.159 speak instead of dropping it like it's hot. But you 0:00:26.160 --> 0:00:29.479 know our girl Mandy, she out here just Mandy doing 0:00:29.520 --> 0:00:31.680 all the things because Mandy k never sits still. I'm 0:00:31.680 --> 0:00:34.560 sure Mandy's like and literally I don't even know, painting 0:00:34.600 --> 0:00:36.680 the house or something like that because Mandy is a 0:00:36.720 --> 0:00:39.680 busy body. Oh but we're gonna get Mandy the rest child. 0:00:39.720 --> 0:00:42.760 But I got y'all. We have great questions today. We 0:00:42.840 --> 0:00:45.400 got a money question, we have a business question. I 0:00:45.440 --> 0:00:50.200 wonder which I should do first? Hum, you know what 0:00:51.000 --> 0:00:53.920 last time I did the money question first and the 0:00:53.920 --> 0:00:56.880 business question second. We're gonna flip the script. Okay, So 0:00:56.920 --> 0:01:01.760 the first question comes from my mentor group. So y'all 0:01:01.800 --> 0:01:05.000 know that I mentor young women, especially black women and business, 0:01:05.319 --> 0:01:07.720 well not young young in business. So you can be 0:01:07.840 --> 0:01:09.880 you know, ten, or you can be one hundred and ten. 0:01:10.280 --> 0:01:13.560 But like new wish to business and I do that 0:01:13.640 --> 0:01:19.440 through Patreon via my mentor Tiffany dot com. And so 0:01:20.120 --> 0:01:22.240 one of the things that comes up again from my 0:01:22.280 --> 0:01:25.720 mentees is about about lots of my check maybe like 0:01:25.760 --> 0:01:28.240 ony eleven hundred mentees. One of the things that comes 0:01:28.360 --> 0:01:30.200 up over and over and over. A question that comes 0:01:30.280 --> 0:01:34.679 up is, Tiffany, if I like, when I'm ready to hire, 0:01:35.600 --> 0:01:37.360 how do I go about doing so? Like, how do 0:01:37.440 --> 0:01:39.880 I know who to hire? First? Second? Third? How do 0:01:39.959 --> 0:01:44.360 I go about hiring? So come into the room, the 0:01:44.440 --> 0:01:47.560 mente room. So let's talk about hiring and the mistakes 0:01:47.560 --> 0:01:50.880 that I made so you don't make them, and what 0:01:50.960 --> 0:01:56.640 I would suggest. So everyone's initial needs your reaction when 0:01:56.680 --> 0:01:59.600 it comes to hiring someone. They think that they ought 0:01:59.600 --> 0:02:02.040 to hire an admin first, which kind of makes sense, right. 0:02:02.080 --> 0:02:04.320 You're like, oh, I need help with these emails, I 0:02:04.360 --> 0:02:08.360 need help navigating, you know, like some sort of honestly 0:02:08.360 --> 0:02:10.520 somebody to kind of like put by your side to 0:02:10.600 --> 0:02:13.400 help you pick up the pieces. Typically that's like an admin. 0:02:13.919 --> 0:02:16.919 And that's what I did. And I would say and 0:02:17.120 --> 0:02:21.960 that although having an ADMIN can be an important component 0:02:22.120 --> 0:02:25.160 to like growing your business and making them more stable, 0:02:26.080 --> 0:02:29.760 I push back and say, the first person you need 0:02:29.880 --> 0:02:35.280 to hire is a financial person because money is the 0:02:35.440 --> 0:02:39.480 life blood of your business. Literally, the blood that flows 0:02:39.520 --> 0:02:43.440 through your business body is money. And if the money 0:02:43.520 --> 0:02:46.920 ain't right, sis, neither are you walk with me. Okay. 0:02:47.360 --> 0:02:50.440 So here's the thing. I know this firsthand because I 0:02:50.480 --> 0:02:53.520 hired an admin first, and for the first two years 0:02:53.560 --> 0:02:55.680 of business, I did not do my taxes because who 0:02:55.760 --> 0:02:58.640 had an accountant? Not me? I had ADMIN, and so 0:02:58.760 --> 0:03:01.239 I was afraid. And that's not true. I had gotten 0:03:01.280 --> 0:03:04.280 an accountant, but I had gotten one later on down 0:03:04.280 --> 0:03:07.280 the line, and as a result, I was behind on 0:03:07.360 --> 0:03:09.640 filing for taxes. And then I got afraid to mention 0:03:09.720 --> 0:03:11.560 that I was behind, and it just became a mess 0:03:11.720 --> 0:03:14.639 until my accountant, God bless his his soul, he's still here. 0:03:14.680 --> 0:03:17.280 But Carlos hit me up because he saw me at 0:03:17.440 --> 0:03:20.720 Shopwright literally took his car and blocked the entrant, blocked 0:03:20.720 --> 0:03:25.000 the aisle. He said, you in my office this week. 0:03:25.280 --> 0:03:28.400 I was like, Carlos, I'm scared to come because i 0:03:28.880 --> 0:03:32.240 haven't done taxes since I started my business, and I'm overwhelmed, 0:03:32.240 --> 0:03:34.600 and I don't have any receipts and I'm still using 0:03:34.600 --> 0:03:36.640 my personal bank account to pay bills. I'm still using 0:03:36.640 --> 0:03:39.440 my personal debit card, credit card. I'm a mess, and 0:03:39.560 --> 0:03:41.960 I know you are too. I know you don't have 0:03:42.040 --> 0:03:44.560 you a separate bank account, I say, you, says, I 0:03:44.600 --> 0:03:47.080 know you're still using your personal credit card, your personal 0:03:47.080 --> 0:03:49.200 debit card more than you are to even if you 0:03:49.240 --> 0:03:51.240 do have a bank account. I know you're still co 0:03:51.400 --> 0:03:55.200 mingling funds. This is what we all do, and it's 0:03:55.240 --> 0:03:58.920 not it's not right, but it's okay. And so Carlos said, 0:03:58.960 --> 0:04:01.120 how much do you think you? Oh, and I don't 0:04:01.160 --> 0:04:03.280 know why, but I had convinced myself I owed eight. 0:04:03.640 --> 0:04:06.960 I owed thirty thousand dollars in taxes. He was like, 0:04:07.000 --> 0:04:09.040 did you even make thirty thousand? I don't know why. 0:04:09.680 --> 0:04:12.040 I don't know why. That's the number ahead of my head. 0:04:12.040 --> 0:04:13.960 And he was like, you don't. He said, I've done 0:04:13.960 --> 0:04:15.640 your taxes over the last two years and you owed 0:04:15.640 --> 0:04:17.920 about eight. And I was like, oh, that's not as bad. 0:04:17.960 --> 0:04:19.720 Even though I didn't have eight, but still that wasn't 0:04:19.720 --> 0:04:21.799 as bad. He said, it would have been about five, 0:04:22.160 --> 0:04:25.960 but because of the fees and all of like, because 0:04:25.960 --> 0:04:28.480 you haven't filed your taxes and you've been late and paying. 0:04:29.040 --> 0:04:31.360 It went from like four points something four and a 0:04:31.360 --> 0:04:34.280 half to five to eight, and that's when I realized, oh, 0:04:35.279 --> 0:04:40.480 that the delay in working on getting my finances together 0:04:40.680 --> 0:04:43.960 was costing me money, and that money cannot be reinvested 0:04:44.000 --> 0:04:47.160 back into my business the budget Neisa. So if I 0:04:47.200 --> 0:04:49.000 was going to go back to young be back, then 0:04:49.279 --> 0:04:52.160 I would have said, Tiffany, you need to get your 0:04:52.240 --> 0:04:57.800 accountant or bookkeeper, someone in that realm first and foremost 0:04:57.960 --> 0:05:00.599 you don't need to get them like first second, but 0:05:00.720 --> 0:05:03.040 the moment that you say to yourself, you know what, 0:05:03.080 --> 0:05:06.160 I need to hire someone like ideally an accountant. Now 0:05:06.160 --> 0:05:08.000 here's the thing. An accountant. The good thing is that 0:05:08.040 --> 0:05:10.320 you meet you can meet with them quarterly, and so 0:05:12.080 --> 0:05:15.799 prices can range anywhere from I don't know, like fifteen 0:05:15.880 --> 0:05:18.800 hundred dollars for the year to upwards of that, you know, 0:05:19.160 --> 0:05:21.720 and so you can save up and say, okay, before 0:05:21.839 --> 0:05:23.480 might start my business, I know, I'm going to find 0:05:23.520 --> 0:05:27.000 an accountant and I'm going to you know, and making 0:05:27.080 --> 0:05:28.880 my business to be able to afford that fifteen hundred 0:05:28.920 --> 0:05:33.720 dollars for the year, and or also potentially a bookkeeper. 0:05:33.760 --> 0:05:37.039 That would be connestly, honestly, probably my second higher if 0:05:37.760 --> 0:05:42.840 I had multiple streams of income. So if let's just 0:05:42.880 --> 0:05:44.800 say I had a smaller business where maybe it's a 0:05:44.839 --> 0:05:47.600 speaking business, I might not need a bookkeeper because it's 0:05:47.640 --> 0:05:50.120 not like I'm speaking every single week where money is 0:05:50.160 --> 0:05:52.279 coming in so rapidly that I need to keep track. 0:05:52.560 --> 0:05:54.080 But let's just say I had a business where I 0:05:54.120 --> 0:05:57.240 was selling things online and I was making you know, 0:05:57.560 --> 0:06:00.760 ten twenty one hundred sales a month. A bookkeeper is 0:06:00.800 --> 0:06:05.240 going to be a helpful person. And bookkeepers, you know, 0:06:05.360 --> 0:06:07.720 you can find a bookkeeper for around four or five 0:06:07.760 --> 0:06:10.440 hundred bucks a month, give or take, and so it's 0:06:10.480 --> 0:06:12.599 not a little bit of money. But the reason why 0:06:12.600 --> 0:06:15.200 bookkeepers can be so helpful is if I would have 0:06:15.200 --> 0:06:18.320 had a bookkeeper, I wouldn't have had the issue of 0:06:18.440 --> 0:06:21.120 not having I didn't know what to give Carlos, my accountant, 0:06:21.360 --> 0:06:24.240 because my finances were a mess. So a bookkeeper is 0:06:24.240 --> 0:06:26.960 what keeps you in line day to day. The bookkeeper 0:06:27.080 --> 0:06:30.359 keeper is creating a ledger of money coming in and 0:06:30.400 --> 0:06:34.039 money going out. They're keeping you financially organized day to day. 0:06:34.320 --> 0:06:37.200 So that way, when it's time to file taxes, whether 0:06:37.240 --> 0:06:40.480 it's once a quarter, every other you know, twice a year, 0:06:40.560 --> 0:06:44.760 or once a year, the bookkeeper puts it in a 0:06:43.680 --> 0:06:47.920 in the way that an accountant receives it. So they're 0:06:47.960 --> 0:06:50.560 going to upload it to like quick books, or they're 0:06:50.560 --> 0:06:52.440 going to put it in an Excel spreadsheet in the 0:06:52.520 --> 0:06:56.279 way that accountants navigate. Now, some accountant firms were also 0:06:57.240 --> 0:06:59.880 offer bookkeeping, so you can ask about that. But to me, 0:07:01.320 --> 0:07:03.640 if I was hiring, like you know, and to be 0:07:03.720 --> 0:07:05.279 very beginning, because here's the thing, you could be your 0:07:05.320 --> 0:07:07.640 own admin. Is it a lot of work, yes, but 0:07:07.720 --> 0:07:10.520 here's how I was my own admin. So in the beginning, 0:07:10.800 --> 0:07:13.760 like especially when I had no no no, no new money, 0:07:14.200 --> 0:07:17.160 what I used to do was I remember thinking to myself, 0:07:17.200 --> 0:07:19.320 everyone is writing me, hey, Tiffany, and they're asking me 0:07:19.360 --> 0:07:21.960 for personal favors. I wish there was someone else that 0:07:22.120 --> 0:07:23.960 was like a middleman, so they didn't know that I 0:07:23.960 --> 0:07:25.600 saw it, and so I was like, well, why do 0:07:25.680 --> 0:07:27.440 they don't know who's answering this email? So I made 0:07:27.520 --> 0:07:29.240 up an admin name. Her name is Michelle, and to 0:07:29.320 --> 0:07:32.000 this day my admin her name is Rose for real, 0:07:32.080 --> 0:07:34.720 but she still answers my emails as Michelle. And I've 0:07:34.720 --> 0:07:36.680 had about five or six Michelle since I started the 0:07:36.720 --> 0:07:39.960 business fifteen years ago, and so I was the first. Michelle. 0:07:40.000 --> 0:07:42.880 You would email me and say, hey, Tiffany girl, real 0:07:42.920 --> 0:07:45.600 quick favor. You could come speaking by school and Michelle 0:07:45.600 --> 0:07:48.760 would write you, hello, Tanya, thank you so much for 0:07:48.760 --> 0:07:51.400 reaching out to Tiffany. This is her admirin Michelle. Meanwhile, 0:07:51.440 --> 0:07:55.200 it's me the old time. Can you please give us 0:07:55.240 --> 0:07:58.000 the time and the date and I will check with 0:07:58.040 --> 0:08:00.080 Tiffany to see that if it it's with her schedule. Mean, 0:08:00.120 --> 0:08:04.000 well it's me, you know. And then people are like, oh, 0:08:04.080 --> 0:08:07.960 excuse me, Michelle, is she available on Friday? I'll ask, 0:08:08.160 --> 0:08:10.240 and I'm like, I'm not because Gary, I didn't want 0:08:10.240 --> 0:08:13.160 to work for free. So Michelle over invite back. Unfortunately, 0:08:13.200 --> 0:08:15.560 on this moment, Tiffany is not available, but please check 0:08:15.640 --> 0:08:18.320 back in another two months. Well she has some more availability. 0:08:18.680 --> 0:08:22.560 It created the space between me and the people emailing it, 0:08:22.840 --> 0:08:24.760 emailing me to ask for request, and it made me 0:08:24.800 --> 0:08:27.280 look a little more professional. Well, I even got Michelle 0:08:27.320 --> 0:08:30.240 her own email child, Michelle at the Budgetizza dot com. 0:08:30.680 --> 0:08:33.720 I ain't no Michelle and so, but it was so helpful. 0:08:33.840 --> 0:08:35.960 So I learned that I could do that for myself. 0:08:35.960 --> 0:08:39.040 But what I couldn't do was the business finances for myself, 0:08:39.200 --> 0:08:42.480 and I'm telling you if your finances are funny, child, 0:08:42.559 --> 0:08:45.360 I've made so many financial mistakes is my business because 0:08:45.360 --> 0:08:47.840 I didn't learn that lesson until too late. It's cost 0:08:47.920 --> 0:08:50.439 me hundreds of thousands of dollars, if not almost seven 0:08:50.440 --> 0:08:54.520 figures in mistakes and tax mistakes. I finally paid my 0:08:54.600 --> 0:08:57.520 last tax bill, it was like two hundred fifty thousand dollars. Okay, 0:08:57.720 --> 0:08:59.560 So I'm telling you this from a place of girl, 0:08:59.600 --> 0:09:02.200 I'll be like me. Listen to me, but don't be 0:09:02.320 --> 0:09:05.480 like me. You know, if you're in business and you're 0:09:05.520 --> 0:09:09.000 you're considering starting a business, you know you want right 0:09:09.040 --> 0:09:11.720 away to separate your business funds from your personal funds, 0:09:11.720 --> 0:09:16.120 so instantly getting two separate checking accounts, two separate deborat accounts. 0:09:16.360 --> 0:09:18.199 You know, ideally look to see if you can get 0:09:18.240 --> 0:09:21.560 even two separate credit cards. Sometimes that's not possible because 0:09:21.600 --> 0:09:23.880 they won't issue you a credit card just yet. Although 0:09:23.920 --> 0:09:26.840 there are some business secured cards where it's literally like 0:09:26.880 --> 0:09:29.840 a credit card that you put a deposit down, and 0:09:29.880 --> 0:09:31.560 that five hundred dollars that you put up for the 0:09:31.600 --> 0:09:34.200 business that's the limit on your on your business credit cards. 0:09:34.200 --> 0:09:38.319 So that's available, but separating your business and personal funds, 0:09:38.720 --> 0:09:41.439 getting yourself an accountant first and foremost, and you may 0:09:41.520 --> 0:09:44.080 or may not need a bookkeeper. And then as you 0:09:44.120 --> 0:09:46.760 grow you might need other financial people. But that would 0:09:46.760 --> 0:09:50.520 be my first hire. And you know, hiring is not easy. 0:09:50.559 --> 0:09:53.439 And then you know, if you don't have any additional money, 0:09:53.480 --> 0:09:55.720 consider interns. Interns are a great way to learn how 0:09:55.720 --> 0:10:00.440 to lead, to learn how to defer, and to to 0:10:00.600 --> 0:10:04.240 give instruction to you know, interns. There's a great website. 0:10:04.280 --> 0:10:07.240 I'm gonna find it. I'm gonna my sister Tracey, who's 0:10:07.240 --> 0:10:09.679 like also a publicist. This is great website where she 0:10:09.760 --> 0:10:14.920 finds interns who they do it for class credit. You know, 0:10:15.360 --> 0:10:16.560 I'm gonna find it and we'll put it in the 0:10:16.559 --> 0:10:19.560 show notes. But interns are a great place to start 0:10:19.600 --> 0:10:22.560 to But know that interns are typically only there for 0:10:22.559 --> 0:10:24.160 like a semester, so three or four months, so you 0:10:24.200 --> 0:10:26.960 can't be living and dying off interns. But and interns 0:10:26.960 --> 0:10:29.160 are a great way to find some good people that 0:10:29.240 --> 0:10:31.920 I've hired interns after they've interned for me for a while. 0:10:32.360 --> 0:10:35.480 So but hopefully that was helpful. I know it was, girl, 0:10:35.480 --> 0:10:37.600 because you don't know what I'm talking about fifteen years 0:10:37.600 --> 0:10:39.920 in the game, forty million dollars later, I have learned 0:10:39.920 --> 0:10:41.920 all the mistakes the hard way, so you don't have 0:10:42.000 --> 0:10:45.920 to if you are someone who was like, ough girl, 0:10:46.000 --> 0:10:48.440 I want to start a business, you know, or my 0:10:48.520 --> 0:10:51.000 business is you know, up and running, but I don't 0:10:51.000 --> 0:10:53.440 really know what I'm doing, or I need some mentorship. 0:10:53.920 --> 0:10:58.720 Mentorship is so critically important. Then head on over to 0:10:58.960 --> 0:11:03.040 my men, to Tiffany dot com and join our Patreon. 0:11:03.240 --> 0:11:05.360 It's only ten bucks a month, but if I'm being honest, 0:11:05.920 --> 0:11:08.360 it's going up to twenty bucks a month, but the 0:11:08.400 --> 0:11:11.000 old people will be grandfathered in. I think actually is 0:11:11.040 --> 0:11:13.320 going up next month. I don't know when this is 0:11:13.320 --> 0:11:15.880 gonna air, but y'all, so if you want to lock 0:11:15.920 --> 0:11:17.599 yourself in ten bucks a month, it will always be 0:11:17.640 --> 0:11:19.120 ten bucks a month for those who signed up for 0:11:19.120 --> 0:11:20.800 ten bucks a month, and it'll go up for the 0:11:20.800 --> 0:11:24.600 new people later. But yeah, you can join us at 0:11:24.679 --> 0:11:27.200 my mentor tiffany dot com link. In the show notes, 0:11:27.600 --> 0:11:31.480 We're gonna take a blizzy black break and come back 0:11:31.600 --> 0:11:34.760 with the money question, and it's actually a really good one, 0:11:35.320 --> 0:11:37.520 and I'll be back in black. Y'all. Don't tell many, 0:11:37.520 --> 0:11:39.439 I've been acting up too much time. I've been good. 0:11:39.800 --> 0:11:41.719 I've been real good. All right, see you in a 0:11:41.800 --> 0:11:50.480 minute and we're back and black and black. So, first 0:11:50.480 --> 0:11:52.280 of all, shout out to this lip that I'm wearing, 0:11:52.640 --> 0:11:55.959 because so y'all know we have this super dope black 0:11:56.960 --> 0:12:01.560 um producer her name is Emaney. Annie Mandy was like, yes, lip, 0:12:01.679 --> 0:12:04.880 I just love black women because we compliment you like 0:12:04.960 --> 0:12:08.640 for what you have on Yes, bun okay, skin brown 0:12:08.920 --> 0:12:12.440 see you. I just love being black yp So she 0:12:12.600 --> 0:12:15.719 was like, okay with these lips, and because we love 0:12:15.800 --> 0:12:19.839 black around here, my lip is by If you was 0:12:19.880 --> 0:12:21.520 watching us on YouTube, you would be able to see it. 0:12:21.559 --> 0:12:24.920 But you know, my lip is by this black owned 0:12:26.440 --> 0:12:29.160 I guess health and beauty brand called the lip Bar. 0:12:29.520 --> 0:12:32.679 And actually, no, Melissa personally, she's super dope black woman 0:12:32.720 --> 0:12:36.040 in business. She actually was rejected on Shark Tank, but 0:12:36.080 --> 0:12:39.240 when Jesus said yes, nobody say no. So she has 0:12:39.240 --> 0:12:41.400 grown her business to be this multimillion dollar business that 0:12:41.480 --> 0:12:45.880 is available at Target's. She actually Melissa is from Detroit, 0:12:45.920 --> 0:12:47.880 from the d and I've been to the Lip Bar 0:12:47.920 --> 0:12:51.319 in Detroit. It's super cute. And so I'm wearing guess 0:12:51.320 --> 0:12:54.680 what the let me tell you how I am right 0:12:54.720 --> 0:12:57.760 on point right here. So the lip color I'm wearing 0:12:57.880 --> 0:13:01.679 is called rich Auntie, and that ain't the truth, okay, 0:13:01.760 --> 0:13:04.000 because lord knows I'm a rich Aunty. So it's really pretty. 0:13:04.040 --> 0:13:09.400 It's like this, like it's a very pinky red, so 0:13:09.640 --> 0:13:13.040 you know. And my liner is Mac but whatever. You know, 0:13:13.080 --> 0:13:15.480 we're not gonna give back too much because it's hyperworld 0:13:15.559 --> 0:13:17.600 via Mac whatever. But we really here for the lip 0:13:17.679 --> 0:13:19.680 bar rich Aunty. Okay. That's one of my favorite colors, 0:13:19.760 --> 0:13:23.040 is one of her best sellers. So let's get into 0:13:23.080 --> 0:13:27.400 the money question of today. So this question comes from 0:13:27.520 --> 0:13:30.840 Naya Hi, and Naya you see what I did there? 0:13:31.480 --> 0:13:35.480 So Nya says, hey, Tiff and Mandy, I am twenty 0:13:35.600 --> 0:13:38.720 nine years old, and until I found this podcast about 0:13:38.760 --> 0:13:42.240 six months ago, no one all caps, I repeat again, 0:13:42.559 --> 0:13:45.640 all caps, no one has been able to make me 0:13:45.920 --> 0:13:51.400 one care about to feel educated and empowered about my money. Nay, 0:13:51.440 --> 0:13:53.640 your girl, don't have me crying up here. Naya Okay, 0:13:54.120 --> 0:13:57.319 She says, I struggled with math since I was younger 0:13:57.360 --> 0:14:00.200 and often felt discouraged for my ability to manage my money. 0:14:00.240 --> 0:14:03.840 Oh mama, but you all use language and concepts that 0:14:03.960 --> 0:14:06.079 really help me to get it. Yes, that's what we're 0:14:06.120 --> 0:14:09.280 here for, Naya, She says, I have a question for 0:14:09.320 --> 0:14:11.640 the baqa that's a little dance to the tune of 0:14:11.679 --> 0:14:15.520 Tiffany's song. Why the ba qa a to b a 0:14:15.880 --> 0:14:19.640 q a? What you say? I love that you love 0:14:19.680 --> 0:14:22.440 that song because I feel like Meddie hates it, but 0:14:22.480 --> 0:14:25.440 it's here to stay. Oh no, she dover hate it, 0:14:26.360 --> 0:14:29.160 so she said. I recently started a new job. I'm 0:14:29.200 --> 0:14:33.040 trying to be intentional about my retirement options. Good, Naya. 0:14:33.760 --> 0:14:36.240 I have a decent sized rollover for my last four 0:14:36.320 --> 0:14:39.960 one K about fifty five hundred invested. Okay? Good. I 0:14:40.000 --> 0:14:41.920 was told I have two options. You actually have more, 0:14:41.960 --> 0:14:45.160 but that's okay. One opened a rollover IRA with my 0:14:45.240 --> 0:14:48.480 personal bank so that it's always there if and when 0:14:48.480 --> 0:14:51.000 I changed jobs, or two roll it over into my 0:14:51.080 --> 0:14:54.080 new jobs four one K plan I have have, I said, 0:14:54.160 --> 0:14:57.160 rollover enough. I'm trying not to get text y'all taught 0:14:57.200 --> 0:14:59.560 me that. Yes, girl. What are some of the advantages 0:14:59.600 --> 0:15:01.920 of a true additional IRA versus keeping the money in 0:15:01.960 --> 0:15:04.720 a four one K or vice versa? Is it better 0:15:04.800 --> 0:15:06.560 to have two accounts? Or just keep all of my 0:15:06.680 --> 0:15:08.960 retirement funds in one account. Thanks for all that you 0:15:09.000 --> 0:15:12.080 do to educate our community. Ny, your girl. First of all, 0:15:12.200 --> 0:15:14.440 we're gonna give you a round of applause for thinking 0:15:14.440 --> 0:15:17.960 about this ahead of time, for understanding that you can 0:15:17.960 --> 0:15:24.400 trigger a tax, an unwanted tax trigger, you know, if 0:15:24.440 --> 0:15:26.200 you don't do this correctly. So I'm glad that you're 0:15:26.200 --> 0:15:27.960 asking this question and we're gonna get you straight. So 0:15:28.000 --> 0:15:29.920 there are actually multiple things you can do. So let's 0:15:29.960 --> 0:15:34.760 go over. There are five things you can do. So one, 0:15:35.000 --> 0:15:37.360 you can leave your money in your current four one 0:15:37.480 --> 0:15:41.800 K plan. But you know the problem is is that 0:15:41.960 --> 0:15:46.120 like like the pro is I guess it's just convenient, 0:15:46.240 --> 0:15:48.840 but the cond is child you know, one, you can't 0:15:48.840 --> 0:15:53.000 contribute to that plan anymore. So by two, they might 0:15:53.040 --> 0:15:55.280 actually charge you additional fees because you're no longer an 0:15:55.280 --> 0:15:59.960 employee and who wants to manage multiple like you know, 0:16:00.160 --> 0:16:02.400 I rate or four one K plans are two different companies. 0:16:02.480 --> 0:16:05.200 So we're that is an option. But because I want 0:16:05.240 --> 0:16:07.360 you to know that there's options, there are about four options. 0:16:07.400 --> 0:16:10.360 But we're not doing that. Okay, she can't sit with us. 0:16:10.440 --> 0:16:12.800 We're not leaving your current four one K plan where 0:16:12.800 --> 0:16:18.120 it is buy okay two option two, you can roll 0:16:18.120 --> 0:16:20.520 it into a new four to oh one K plan. 0:16:20.600 --> 0:16:22.280 This is one of the options that you brought up, 0:16:22.680 --> 0:16:25.800 and so here's some of the pros. So assuming that 0:16:25.840 --> 0:16:28.080 you like the new plans, the costs and the features 0:16:28.080 --> 0:16:30.800 and the investment choices, this can be a good option. Right, 0:16:30.840 --> 0:16:33.800 So your savings has the potential for growth, and that's 0:16:33.800 --> 0:16:36.400 it's tax deferred, meaning like you don't have to pay 0:16:36.440 --> 0:16:38.960 taxes on it now because you know with four one 0:16:39.040 --> 0:16:41.440 ks you don't pay taxes now. You pay taxes when 0:16:41.480 --> 0:16:44.400 you pull it out, and so you can continue and 0:16:44.440 --> 0:16:47.120 if you continue to work for the company, then you 0:16:47.120 --> 0:16:48.760 know you could just continue to add to that four 0:16:48.800 --> 0:16:51.000 one K plan. Those are some of the pros. Is 0:16:51.000 --> 0:16:53.920 that everything is right there. You know, you know you 0:16:53.960 --> 0:16:55.640 probably will have the same protections that you had at 0:16:55.640 --> 0:16:58.360 your other FOREU one K plan. The cons is that 0:16:58.400 --> 0:17:00.680 you're going to need to liquidate your current for one 0:17:00.760 --> 0:17:03.760 K investment and reinvest it into your new four one 0:17:03.840 --> 0:17:07.560 K plan and the new money, this money that's going 0:17:07.640 --> 0:17:10.000 to be rolled over will be subject to your new 0:17:10.000 --> 0:17:13.480 plans with draw rules, so you know you likely whatever. 0:17:13.520 --> 0:17:15.160 Once you locked that money in there, you're not gonna 0:17:15.160 --> 0:17:17.000 be able to typically take it with you unless you 0:17:17.080 --> 0:17:19.119 leave your employer. But I mean, I think that's a 0:17:19.160 --> 0:17:20.720 con that you kind of know, like I'm gonna put 0:17:20.720 --> 0:17:23.399 my money here and leave my money here. So you 0:17:23.440 --> 0:17:25.520 can leave your money with this, you could roll it 0:17:25.520 --> 0:17:28.080 over to this new place. The key that's really critical 0:17:28.560 --> 0:17:31.760 is that you are not to do the rollover yourself. 0:17:32.160 --> 0:17:35.120 The bank has to talk to the bank, so they're 0:17:35.160 --> 0:17:38.400 going to tell you, like, I just rolled over some money, right, 0:17:38.720 --> 0:17:41.240 So it wasn't for me to like cash out the 0:17:41.240 --> 0:17:44.080 money and say, here's thirty thousand dollars. Got no, no, no, no, no, 0:17:44.560 --> 0:17:47.280 Like literally, they're going to do themselves and give you 0:17:47.400 --> 0:17:50.280 clear directions. For one. For me, for example, they actually 0:17:50.320 --> 0:17:53.119 sent me a check that was not for me. It 0:17:53.160 --> 0:17:54.919 did not even have my name on it, but it 0:17:54.960 --> 0:17:57.760 really was for my new plan. And I was literally 0:17:57.800 --> 0:18:00.199 supposed to mail the check to the new people. That 0:18:00.320 --> 0:18:02.080 was it. I was like, just just to hold the 0:18:02.200 --> 0:18:03.919 check and mail it to the new people, if that 0:18:03.960 --> 0:18:05.800 makes sense. So you just want to make sure that 0:18:06.320 --> 0:18:09.840 in rolling over whatever you choose, that you don't accidentally 0:18:09.880 --> 0:18:14.040 trigger a tax and fee of You don't want to 0:18:14.040 --> 0:18:16.760 trigger any of that because one, you're not fifty nine 0:18:16.800 --> 0:18:18.680 and a half, so if you take any money now 0:18:19.040 --> 0:18:21.560 you're going to be, there's a fee attached to that. 0:18:21.840 --> 0:18:24.920 And then two, like just like when you are fifty 0:18:25.000 --> 0:18:26.800 nine and a half and sixty and sixty five, if 0:18:26.840 --> 0:18:28.679 you take your money out, you have to pay taxes 0:18:28.720 --> 0:18:31.280 on the money either way, so you will be paying twice. 0:18:31.440 --> 0:18:33.840 So you don't want to make that mistake. So this 0:18:33.960 --> 0:18:36.200 is a viable option rolling over into your four to 0:18:36.200 --> 0:18:38.800 one K plan. Now there's nothing wrong. I don't think anything. 0:18:38.920 --> 0:18:41.719 There's nothing negative here. You just have to decide. So 0:18:41.920 --> 0:18:45.960 number three is you can roll it over into a 0:18:46.040 --> 0:18:50.240 traditional individual retirement account. So that's an IRA. So you 0:18:50.280 --> 0:18:53.200 have a four oh one K and IRA is basically 0:18:53.280 --> 0:18:56.040 like a four on one K that you have at 0:18:56.119 --> 0:18:58.720 your it's not buy an employer, it's with your bank. 0:18:59.000 --> 0:19:01.880 So because iras are not sponsored by employers, you own 0:19:01.920 --> 0:19:04.159 them directly. You won't have to worry about making changes 0:19:04.200 --> 0:19:06.800 to your account should you change jobs again in the future. 0:19:06.840 --> 0:19:09.520 So this is a pro and the IRA provider might 0:19:09.560 --> 0:19:12.679 offer you a bigger arrange, like a wider arrange of 0:19:12.720 --> 0:19:16.600 investment options and services than your new employer. So many 0:19:16.720 --> 0:19:19.639 times for one k's will just have mutual funds, and 0:19:19.720 --> 0:19:24.440 mutual funds typically have higher fees because a mutual fund 0:19:24.760 --> 0:19:28.040 typically the the investments inside of a mutual fund are 0:19:28.119 --> 0:19:32.240 picked by people, right, and so when someone gets involved, 0:19:32.240 --> 0:19:34.679 they want to get paid, and so as a result 0:19:34.760 --> 0:19:37.840 of that, mutual funds have higher fees that are called oh, 0:19:37.920 --> 0:19:39.480 of course, I forgot the name of the dam fees. 0:19:39.800 --> 0:19:42.480 Either way, they're called fees, but it's like a special fee, 0:19:42.520 --> 0:19:45.880 a special name for those fees. But so there might 0:19:45.920 --> 0:19:47.760 be so you might want to compare. If it was me, 0:19:47.880 --> 0:19:50.280 I would compare. You know, here's the bank where I bank? 0:19:50.640 --> 0:19:52.880 Let me see your IRA? What are your fees? Four 0:19:52.920 --> 0:19:54.960 one K? At my new job, what are your fees? 0:19:55.000 --> 0:19:56.960 And then what are my investment options? Do you just have? 0:19:57.680 --> 0:20:00.399 You know, the investment options at your four K are 0:20:00.440 --> 0:20:03.600 probably pretty limited, they typically are, but iras are usually 0:20:03.600 --> 0:20:06.880 pretty broad. But broad might not be good if you're 0:20:06.920 --> 0:20:09.320 going to be overwhelmed in choices. Okay, so the pros 0:20:09.359 --> 0:20:13.040 are maybe a lot lower fees, bigger investment options. Some 0:20:13.119 --> 0:20:15.320 of the cons are Once you roll over your funds 0:20:15.359 --> 0:20:18.240