WEBVTT - Spend Less Or Make More (BA Q&A) 0:00:06.280 --> 0:00:10.000 It's time for the b a q a to b 0:00:10.240 --> 0:00:14.160 a q a, the b q a man da, the 0:00:14.240 --> 0:00:16.959 b a q a tiffan a, the b a q 0:00:17.200 --> 0:00:23.560 pay a. Okay, it's brandna bitching question answers. You have questions, 0:00:23.680 --> 0:00:26.320 We have some answers. Although we are not your doctor, 0:00:26.440 --> 0:00:29.120 you're not your attorney, your financial advisor. Basically, you don't 0:00:29.120 --> 0:00:32.120 pay us to answer questions, so that means that this 0:00:32.240 --> 0:00:36.720 is not professional question answers were entertainment, although we are 0:00:36.760 --> 0:00:40.720 too smart and brilliant beautiful brown girls. But you're gonna 0:00:40.760 --> 0:00:43.200 use the smallest grain of salt and then you're gonna 0:00:43.240 --> 0:00:44.960 lean into people that you do pay for the rest 0:00:45.000 --> 0:00:49.120 of the information you need. Okay, aka sue your grandmother, 0:00:49.320 --> 0:00:50.479 not us. All right. 0:00:50.520 --> 0:00:55.760 Our first question comes from a listener. Sounds spicy kyenne cayenne. 0:00:55.800 --> 0:00:58.640 All right, She says, Hey, Mandy and Tiffany, I've been 0:00:58.680 --> 0:01:00.600 listening to you both for about two years now, and 0:01:00.640 --> 0:01:03.400 I absolutely love the show. You're both so funny, and 0:01:03.480 --> 0:01:05.560 even when it doesn't relate to me at all, I 0:01:05.600 --> 0:01:07.600 just feel so much better after listening. 0:01:07.280 --> 0:01:08.200 To my two besties. 0:01:08.240 --> 0:01:10.440 It I don't who don't know why I exist? Yes, 0:01:10.480 --> 0:01:10.720 we do. 0:01:11.840 --> 0:01:12.400 Cayenne. 0:01:12.560 --> 0:01:15.240 Okay, that's so sweet, all right, she says. I am 0:01:15.240 --> 0:01:18.080 an immigrant from Jamaica and we came here after losing 0:01:18.160 --> 0:01:21.480 our business to COVID. We basically lost everything. While we 0:01:21.520 --> 0:01:23.480 still have our house, but we also have a lot 0:01:23.480 --> 0:01:26.560 of debt and no savings and no retirement. I've been 0:01:26.600 --> 0:01:28.720 burying my head in the sand for far too long. 0:01:28.800 --> 0:01:31.920 I'm forty six, my husband's forty eight. He's working full 0:01:31.920 --> 0:01:35.280 time again but only making about sixty five K. I 0:01:35.360 --> 0:01:38.160 work from home and make about thirty K. We have 0:01:38.280 --> 0:01:41.520 two kids, one in private school on a scholarship, okay, 0:01:41.800 --> 0:01:43.600 and part of the reason that we moved here, but 0:01:43.640 --> 0:01:47.680 it's still expensive. Basically, I'm feeling overwhelmed all the time, 0:01:47.760 --> 0:01:49.600 and I don't know where to start to get out 0:01:49.600 --> 0:01:52.640 of debt, to save, to get financially independent, and to 0:01:52.760 --> 0:01:56.360 plan for retirement, which isn't far away. Seriously, what should 0:01:56.560 --> 0:02:01.520 I do? Woof ben for a couple of years. That's 0:02:01.560 --> 0:02:02.840 your business to COVID. 0:02:03.080 --> 0:02:06.200 So sorry to hear that, Yeah, go for it, but 0:02:06.200 --> 0:02:08.520 they still have your house, which is awesome. So first, 0:02:08.520 --> 0:02:10.200 we're going to be grateful for the things we do have, 0:02:10.760 --> 0:02:14.360 but it also acknowledged the things that we don't right, 0:02:15.200 --> 0:02:21.639 and so hmm, okay, well working from home, just looking. 0:02:21.400 --> 0:02:23.200 No place like America to make you feel. 0:02:23.040 --> 0:02:26.560 Like I mean, what I would say is that there's 0:02:26.560 --> 0:02:28.400 only one or two ways to have more money, right. 0:02:28.919 --> 0:02:30.800 You either have to spend less or you have to 0:02:30.800 --> 0:02:32.919 make more. That's just that's just it. There's no other 0:02:33.000 --> 0:02:36.600 magical way. And you know, although I'm the budget neist 0:02:36.639 --> 0:02:40.440 to certainly I'm I don't know your personal finances, so 0:02:40.480 --> 0:02:42.960 I like to kind of typically start just to do 0:02:43.040 --> 0:02:45.560 a scan of like is there any place where I 0:02:45.600 --> 0:02:48.880 might be overspending that I'm like not really acknowledging like 0:02:48.880 --> 0:02:52.080 that I'm overspending. So maybe sit down with your partner 0:02:52.520 --> 0:02:54.799 and just take a look like do we really need this? 0:02:55.280 --> 0:02:56.960 Can we you know, can we trade in the car 0:02:57.040 --> 0:03:02.359 for something with a smaller you know, can we refinance? 0:03:02.840 --> 0:03:04.839 You know? Well, I don't know about these days, because 0:03:04.840 --> 0:03:07.440 you know, the interest rates are crazy, but I would 0:03:07.440 --> 0:03:09.320 just start there, is that, like, let me look at 0:03:09.320 --> 0:03:12.760 what my life's costing me and is there any place where, 0:03:13.280 --> 0:03:16.119 especially the obvious places, where I can make financial adjustment? 0:03:16.200 --> 0:03:20.679 So that's one, and then and probably most importantly, asking yourself, 0:03:20.800 --> 0:03:24.320 is there are there ways to make additional income or 0:03:24.320 --> 0:03:27.480 increase the income where you're currently making, And so Mandy 0:03:27.520 --> 0:03:29.000 will tell you, like, you know, one of the best 0:03:29.040 --> 0:03:31.280 places to make more money is that your job. I'm 0:03:31.280 --> 0:03:33.679 sure Manday's got to go over hopefully some negotiating tactics 0:03:33.680 --> 0:03:36.120 for asking for more money. Do you have like a 0:03:36.160 --> 0:03:39.280 brag book or go meet file that kind of illustrate 0:03:39.320 --> 0:03:42.520 your open the value, the overwhelming value that you bring 0:03:42.520 --> 0:03:44.880 to the table, so you can go in asking for 0:03:44.960 --> 0:03:48.760 more money? Is your LinkedIn updated in a way that 0:03:48.800 --> 0:03:51.960 you know, you can apply for another job that maybe 0:03:52.000 --> 0:03:54.720 similar skill set, but you can make more money. And 0:03:54.800 --> 0:03:56.600 so those are the places that I would start. I 0:03:56.600 --> 0:03:59.400 wouldn't you know, if you are already feeling tight, like 0:03:59.400 --> 0:04:01.440 we really don't spend and don't spend a lot of 0:04:01.480 --> 0:04:04.480 time on cutting back, if you really feel confident you're 0:04:04.520 --> 0:04:07.520 not hugely overspending, but everyone is spending a little bit, 0:04:07.880 --> 0:04:10.600 you know, like more than what's necessary, and that's okay. 0:04:10.680 --> 0:04:12.960 But I would lean a lot of my time and 0:04:13.080 --> 0:04:15.480 energy into like learning and figuring out how we can 0:04:15.520 --> 0:04:19.680 make additional income so you can create that space. And 0:04:19.880 --> 0:04:22.400 in the beginning it's really just I mean I don't 0:04:22.400 --> 0:04:24.400 know if you're making enough to cover your basic bills. 0:04:24.480 --> 0:04:26.240 It sounds like if you're leaning on debt a lot. 0:04:26.320 --> 0:04:29.799 That's not necessarily the case. So first order of business 0:04:30.200 --> 0:04:32.880 getting clear about how much money you need to make 0:04:32.920 --> 0:04:35.760 to cover your basic bills. Once you get that income 0:04:35.800 --> 0:04:37.880 coming in, you can start to put your debt on 0:04:37.960 --> 0:04:40.760 kind of like an automated system for yourself. Look into 0:04:40.760 --> 0:04:44.480 the snowball method and the avalanche method at paying down debt, 0:04:45.279 --> 0:04:47.200 and once you get pretty secure on that, then you 0:04:47.240 --> 0:04:50.760 can start to look into setting aside money for savings 0:04:50.760 --> 0:04:56.080 and retirement, especially the retirement component, because you are you're 0:04:56.080 --> 0:04:58.880 not quite over fifty yet, but once you get over fifty, 0:04:59.279 --> 0:05:01.320 it's only four forty six. For some time, I saw 0:05:01.360 --> 0:05:03.839 forty eight. Okay, her husband's forty eight. That's her hobby, 0:05:03.960 --> 0:05:05.919 you know, So you can start to think about in 0:05:05.960 --> 0:05:07.880 two years he will be able to do something called 0:05:07.920 --> 0:05:11.680 catch up contributions, which means not only can you contribute 0:05:12.120 --> 0:05:14.920 you know, your regular retirement maximount, but then you can 0:05:14.960 --> 0:05:18.040 also contribute above and beyond that, you know. So that 0:05:18.080 --> 0:05:21.960 would be my aim is to make more money, cut back, 0:05:22.080 --> 0:05:24.240 you know, by looking at what I'm currently spending make 0:05:24.279 --> 0:05:27.000 more money by either looking for another job, asking for 0:05:27.040 --> 0:05:30.039 a raise. I'm doing. You know, you don't always necessarily 0:05:30.120 --> 0:05:31.800 have to have a side hustle, because I know I 0:05:31.839 --> 0:05:34.320 could be really stressful, especially if you're overwhelmed. You know, 0:05:34.360 --> 0:05:36.960 once you get to a safer space, starting to save 0:05:37.040 --> 0:05:40.440 and set aside for you know, for retirement. I know 0:05:40.480 --> 0:05:42.240 this is hard because sometimes these days you just be 0:05:42.360 --> 0:05:44.880 like it'll never get better. And I just hope you 0:05:44.920 --> 0:05:46.800 give yourself a little grace in space and make sure 0:05:46.839 --> 0:05:48.720 you don't do this alone and if you just need 0:05:48.760 --> 0:05:51.240 some like support support. I have this free group called 0:05:51.640 --> 0:05:54.720 the Dream Catchers with an s group. It's just other 0:05:54.920 --> 0:05:57.280 mostly women, but we have some guys in there who 0:05:57.360 --> 0:06:01.279 are navigating similar circumstances. Because the answer these days to 0:06:01.360 --> 0:06:04.560 personal finances that you can't do it alone. You know, 0:06:04.680 --> 0:06:05.120 you you. 0:06:05.160 --> 0:06:06.599 Need there's no shortcuts. 0:06:06.760 --> 0:06:08.560 Yeah, you need community, and so. 0:06:08.720 --> 0:06:10.280 I think the internet will have you out here thinking 0:06:10.320 --> 0:06:13.279 there's shortcuts. Yeah, like I have to do this really quickly. Yeah, 0:06:13.320 --> 0:06:15.400 it takes you a long, Like you built a business. 0:06:15.720 --> 0:06:17.640 I wonder if there are American citizens too, and if 0:06:17.640 --> 0:06:20.880 that changes any of the rules around investing. I mean 0:06:20.920 --> 0:06:23.440 they're here, so I'm guessing, she said, I I don't 0:06:23.480 --> 0:06:24.080 know how that works. 0:06:24.400 --> 0:06:24.800 I don't know. 0:06:25.080 --> 0:06:29.279 But my first thing is you're making thirty k working 0:06:29.279 --> 0:06:32.440 from home and you started that up. You've only been 0:06:32.440 --> 0:06:34.800 here a couple of years. I'm just like, you're you're 0:06:34.880 --> 0:06:37.640 starting from scratch in a lot of ways. My question 0:06:37.680 --> 0:06:40.560 around the debt, Tiffany, is at what point, when you're 0:06:40.560 --> 0:06:44.240 starting over you've lost a business. I'm like, why can't 0:06:44.360 --> 0:06:48.159 you file bankruptcy, restructure some of that debt, you know, 0:06:48.279 --> 0:06:50.560 get some of the debts off your you know, off 0:06:50.560 --> 0:06:53.880 your books. Yes, it will tank your credit and there's 0:06:53.920 --> 0:06:55.680 all these downsides, of course, but. 0:06:56.360 --> 0:07:00.960 It used to be bankruptcy will wipe you clean, you know. So, 0:07:01.279 --> 0:07:03.080 but these days sometimes they want you to be damned 0:07:03.080 --> 0:07:05.839 near broke, like they're like, get rid of everything. Yeah, 0:07:05.880 --> 0:07:07.599 well some like you know, it's sometimes it's like you 0:07:07.720 --> 0:07:10.040 they're only let you have a certain amount of money 0:07:10.120 --> 0:07:11.360 left over because they're like, you're not gonna fole for 0:07:11.400 --> 0:07:13.680 banruptcy and have all this money, you know, which you 0:07:13.760 --> 0:07:16.360 might not. So that's something certainly like if the debt 0:07:16.400 --> 0:07:18.200 is as that's the results of the business, maybe the 0:07:18.200 --> 0:07:20.040 business files for bankruptcy. I don't know what type of 0:07:20.080 --> 0:07:23.080 business entity that you that you have, but that is 0:07:23.120 --> 0:07:26.160 a potential. I don't know what so much debt is. 0:07:26.160 --> 0:07:28.840 Is it thirty thousand, is it three hundred thousand? Is 0:07:28.880 --> 0:07:31.280 it student loan debt? You know, federal student loan debt 0:07:31.280 --> 0:07:36.280 that doesn't qualify for bankruptcy dismissal. So looking at that 0:07:36.320 --> 0:07:39.680 debt and really getting an understanding about like who, like 0:07:39.760 --> 0:07:43.560 who do you owe and can you call and negotiate 0:07:43.600 --> 0:07:46.320 maybe like a pause and payment. It's really going to 0:07:46.360 --> 0:07:47.320 be step by step to all. 0:07:47.280 --> 0:07:50.840 The COVID relief programs. Yes, yeah, the COVID relief programs 0:07:50.840 --> 0:07:53.040 are kind of done. And since you're an immigrant, I 0:07:53.080 --> 0:07:55.680 just don't know what the eligibility requirements are in all 0:07:55.720 --> 0:07:58.640 of that. But you have the house in Jamaica. I 0:07:58.640 --> 0:08:00.640 feel like a lot you know, people who live in Jamaica. 0:08:00.680 --> 0:08:03.160 It's not all like a luxury condo on the beach. 0:08:03.520 --> 0:08:06.560 But could you rent to get some income even if 0:08:06.640 --> 0:08:09.600 you know, just rent it out potentially to drum up 0:08:09.640 --> 0:08:13.000 some income and it Yeah, I wouldn't say sell because 0:08:13.000 --> 0:08:15.160 I imagine it must be really hard to sell your home. 0:08:15.440 --> 0:08:17.800 It's the last time you have left right. But my 0:08:18.000 --> 0:08:20.440 as far as like negotiating for more, you're only making 0:08:20.480 --> 0:08:22.720 thirty K. I mean, I hate to say only we're 0:08:22.760 --> 0:08:24.840 working from home. I wish we had more details. But 0:08:24.880 --> 0:08:26.640 what are you doing and how can you ramp it up? 0:08:27.280 --> 0:08:31.000 And I think you'll be able to think more clearly 0:08:31.080 --> 0:08:33.720 if you just like take a breath and give yourself 0:08:33.760 --> 0:08:35.559 permission for this to take a little bit of time. 0:08:36.160 --> 0:08:38.400 You haven't said that you guys aren't able to like 0:08:38.440 --> 0:08:41.360 pay your rent or whatever. It is like you're able 0:08:41.360 --> 0:08:43.680 to keep it sounds like you're just like you're making 0:08:43.800 --> 0:08:47.280 ends meet, but it's you have this like this cloud 0:08:47.320 --> 0:08:50.520 hanging over you, which is like retirement saving debt. If 0:08:50.520 --> 0:08:53.480 you're making ends meet, just like that's okay. The the 0:08:53.520 --> 0:08:56.920 most important thing is for you to have savings set 0:08:56.960 --> 0:09:00.680 aside so that you guys can cover your own you know. 0:09:01.920 --> 0:09:04.160 And then I would say, look at what types of 0:09:04.160 --> 0:09:07.439 debt you have, Maybe get in touch with a credit 0:09:07.480 --> 0:09:14.600 counseling organization like the NFCC National or NFCC or whatever. 0:09:14.920 --> 0:09:16.960 Does she say where she lives in the US, because 0:09:16.960 --> 0:09:20.880 there may be some state programs, community programs. Don't be 0:09:20.960 --> 0:09:23.400 afraid to reach out a hand and ask for help 0:09:23.679 --> 0:09:30.520 and look for resources. And yeah, you're in a place 0:09:30.520 --> 0:09:32.400 now where you're going to need to open up ask 0:09:32.440 --> 0:09:35.400 for help. You're feeling overwhelmed because I think you are 0:09:35.480 --> 0:09:38.280 and maybe doing it alone? You know, does your husband? 0:09:38.360 --> 0:09:38.840 Do you? Guys? 0:09:38.840 --> 0:09:40.800 Are you open with each other about how you're feeling? 0:09:41.160 --> 0:09:44.000 Can you find like you know, do you have family 0:09:44.040 --> 0:09:45.920 here who can you lean into in your community so 0:09:45.920 --> 0:09:48.160 that you're not doing it alone? And I love tip 0:09:48.200 --> 0:09:50.920 your tip about joining the dream Catchers because this is 0:09:50.960 --> 0:09:54.559 not going to be an easy road out. The only 0:09:54.600 --> 0:09:57.080 way is through. I just don't want you to start 0:09:57.120 --> 0:09:59.040 beating yourself up with the idea that it has to 0:09:59.040 --> 0:10:00.920 all be happening right now, because the reality is that 0:10:00.920 --> 0:10:03.440 it probably can't. You are going to have to make 0:10:03.440 --> 0:10:05.960 more money from your business or find other sources of income. 0:10:06.000 --> 0:10:09.400 Your husband maybe he will after he gets you know, 0:10:09.440 --> 0:10:12.080 this this work experience. He can find another job and 0:10:12.120 --> 0:10:15.280 negotiate for more and increase his income that way. But 0:10:15.320 --> 0:10:17.760 it's not something you can snap your fingers and do immediately, 0:10:18.920 --> 0:10:22.200 which may be frustrating, but we keep it one hundred. 0:10:23.160 --> 0:10:27.320 You just have to make a plan, ye execute that plan. 0:10:27.960 --> 0:10:30.760 Whatever the plan is make a plan. A credit counselor 0:10:30.760 --> 0:10:32.679 can help you make that plan and. 0:10:32.640 --> 0:10:34.600 Also made whole. I'm going to plug the new book 0:10:35.280 --> 0:10:37.400 help you with a step by step plan. So what 0:10:37.480 --> 0:10:40.800 I call financial hollness mad whole workbook dot com. If 0:10:40.800 --> 0:10:45.320 you will please well hopefully this was yeah, read text book. 0:10:45.440 --> 0:10:47.280 We're gonna take a quick break. Yes, I will be 0:10:47.280 --> 0:10:51.320 back and black it a never all right, buye, I 0:10:51.320 --> 0:10:55.600 mean not by see you in a minute, and we're 0:10:56.120 --> 0:11:00.560 blacking back. So this is funny because this question from 0:11:00.679 --> 0:11:03.240 oldiesh and unsure. I love this because, first of all, oldest, 0:11:03.280 --> 0:11:06.040 you ain't oldest, only thirty nine years overall, don't make 0:11:06.080 --> 0:11:09.040 me feel old. I have a question my job, not career. 0:11:10.000 --> 0:11:13.160 She specified right, office of four one K, but no 0:11:13.240 --> 0:11:16.400 employer match. Were just looking about this and I have 0:11:16.559 --> 0:11:20.559 almost been there one year and was automatically set up 0:11:20.600 --> 0:11:22.960 to deduct three percent for my paycheck to go to 0:11:22.960 --> 0:11:25.880 the four one K. Okay. In my latest statement, glad 0:11:25.920 --> 0:11:28.839 you're looking at it, I noticed each quarter I'm being 0:11:28.960 --> 0:11:32.280 charged administrative fees. How many of y'all didn't realize that 0:11:32.320 --> 0:11:35.520 you get admin fees on your former k? Really, any 0:11:35.600 --> 0:11:38.880 retirement investment account is typically going to have some sort 0:11:38.920 --> 0:11:42.679 of fees yep h which total twenty five dollars to 0:11:42.760 --> 0:11:45.600 one hundred dollars a year. I'm thirty nine and have 0:11:45.720 --> 0:11:49.760 a wroth IRA and several mutual funds established for my retirement. 0:11:49.880 --> 0:11:52.640 Should I continue to invest the eighty three dollars per 0:11:52.679 --> 0:11:55.160 paycheck in my four one K or should I automate 0:11:55.679 --> 0:11:58.520 that amount and then some to a pre existing WROTH 0:11:58.600 --> 0:12:03.520 or mutual fund. Now, like I said prior, oldiest, and 0:12:03.559 --> 0:12:05.240 I'm sure we're not gonna call you older, We're gonna 0:12:05.240 --> 0:12:09.480 call you fabulous. But unsure because you're thirty nine, says 0:12:09.720 --> 0:12:13.720 forty two, don't do this, sus don't do this, So unsure. 0:12:15.120 --> 0:12:17.240 I al really like employ man. I don't really like 0:12:17.280 --> 0:12:19.880 four one k's or making four one k's a priority 0:12:19.920 --> 0:12:22.920 if there's no match. So to answer your question, I honestly, 0:12:23.120 --> 0:12:25.480 especially now that these you know, you have these admin fees, 0:12:26.480 --> 0:12:28.880 which is not gonna offset anything. So you know you're 0:12:29.200 --> 0:12:31.680 if you're putting in let's just say eighty three you 0:12:31.720 --> 0:12:36.240 know what is that times Let's do the math we're 0:12:36.240 --> 0:12:41.679 mathing today. Eighty three pre times twelve is nine hundred 0:12:41.760 --> 0:12:45.520 ninety six. So Basically, one thousand dollars a year's what 0:12:45.559 --> 0:12:48.439 you're putting in, and of the thousand, they're taking ten 0:12:48.720 --> 0:12:53.360 percent in fees. So in order for you to come up, 0:12:53.800 --> 0:12:55.920 you would you would have to make more than ten 0:12:55.960 --> 0:12:59.920 percent on your investments. Right, because you're putting in a thousand, 0:13:00.679 --> 0:13:04.040 you're losing one hundred. One hundred is ten percent of 0:13:04.040 --> 0:13:06.600 one thousand. That means your money would have to grow 0:13:06.679 --> 0:13:11.360 beyond that loss in administration fees, which the average the 0:13:11.400 --> 0:13:13.360 market has been averaging for the last hundred years eight 0:13:13.400 --> 0:13:17.560 to ten percent. So you're gonna end up like net even, right, So, 0:13:17.640 --> 0:13:19.160 like the money you put in is literally the money 0:13:19.160 --> 0:13:21.160 you'll get out. It's looking like instead of a four 0:13:21.200 --> 0:13:22.880 one K plan, you looking like you put money to 0:13:22.880 --> 0:13:25.559 save this gown, not even because Savis accounts these days 0:13:25.600 --> 0:13:30.600 are at least giving you one percent. Sis says, says, 0:13:30.960 --> 0:13:33.240 So I would if it's eighty three dollars. 0:13:33.240 --> 0:13:34.920 You've actually read her fine print. 0:13:35.000 --> 0:13:37.120 A girl, I'm so, I'm proud of you. Honestly, I'm 0:13:37.200 --> 0:13:39.920 unsure ish we gonna call you smart, smart, but unsure 0:13:40.480 --> 0:13:42.840 that yes, I would redirect that eighty three someplace elves 0:13:43.160 --> 0:13:45.200 and I would not consider that four one k again, 0:13:45.280 --> 0:13:50.080 unless I had enough to offset the administrative fees. So 0:13:50.120 --> 0:13:51.880 if I was putting in safe, you were putting in 0:13:52.000 --> 0:13:55.120 four hundred bucks a month, you know, then the administrative 0:13:55.120 --> 0:13:57.200 fees would be a smaller percentage of what you put in, 0:13:57.240 --> 0:13:58.120 and it might make sense. 0:13:58.559 --> 0:14:01.920 So yeah, this is exactly why I don't even love 0:14:02.000 --> 0:14:05.760 like some investing apps because they have like a dollar 0:14:05.800 --> 0:14:08.600 amount fee that they charge, which if you're like, if 0:14:08.600 --> 0:14:11.400 you're investing your pocket change, that's a that's a big 0:14:11.559 --> 0:14:13.200 like Tiffany said, when you break it down by the 0:14:13.200 --> 0:14:15.439 fee divided by what you're actually investing, like, it's a 0:14:15.480 --> 0:14:18.920 big it's a big amount of fees. So I can't 0:14:18.960 --> 0:14:21.640 even think. But I would say, just like Tiffany said 0:14:21.680 --> 0:14:24.960 earlier to our previous almost said caller to our previous listener, 0:14:25.040 --> 0:14:28.200 about going to like Magnify Money, but going and doing 0:14:28.240 --> 0:14:31.040 your googles and research to find a brokerage account and 0:14:31.080 --> 0:14:33.520 being realistic about how much you can contribute and then 0:14:33.560 --> 0:14:36.400 see what kind of fees they have, because the fee 0:14:36.400 --> 0:14:38.680 may be different depending on like how much you're going 0:14:38.720 --> 0:14:41.200 to contribute a month. Each month, it might be a 0:14:41.240 --> 0:14:44.120 little bit more if you're contributing less and then less 0:14:44.120 --> 0:14:48.520 if you're contributing more. It's twisted and rude of them 0:14:48.560 --> 0:14:49.920 to do it that way, but that's how a lot 0:14:49.920 --> 0:14:53.960 of them. It's how a bees. Sometimes. That's a really 0:14:53.960 --> 0:14:57.240 good question. Thank you. What are we calling her smart 0:14:57.240 --> 0:15:01.320 but unsure? Yes, smart but unsure, savvy and unsure? 0:15:01.960 --> 0:15:03.280 That really really really quick question. 0:15:03.400 --> 0:15:06.240 Yes, what do that one me on the same page? Yeah, 0:15:06.320 --> 0:15:08.640 let's get yesen Yeah, I love this name from ig 0:15:08.800 --> 0:15:13.280 Yesenya says, should I max out my wroth ira before 0:15:13.560 --> 0:15:16.040 investing in a brokerage account? I'm not sure that I 0:15:16.080 --> 0:15:18.680 can do both right now, it's. 0:15:18.520 --> 0:15:22.280 About time hit him. 0:15:23.080 --> 0:15:26.640 The state amaz that was here with this. Yeah, I 0:15:26.640 --> 0:15:28.920 think that that's a good idea. I mean with there's 0:15:28.920 --> 0:15:31.280 some benefits to a roth ira that you're not going 0:15:31.360 --> 0:15:35.000 to get from traditional brokerage account. The main one is, 0:15:35.080 --> 0:15:37.800 so when you're contributing to a wroth you're using dot 0:15:38.200 --> 0:15:40.160 you're using money that you've already paid taxes on and 0:15:40.160 --> 0:15:42.600 you're putting it into a wrath The limit is like 0:15:42.840 --> 0:15:45.840 sixty five hundreds, depends on your age, it can be 0:15:45.880 --> 0:15:50.800 a little bit more, but with a roth iray it's 0:15:50.840 --> 0:15:52.440 a little bit it's a lot more flexible than a 0:15:52.440 --> 0:15:55.080 brokerage account, so the money that you put in because 0:15:55.080 --> 0:15:56.760 you've already paid taxes on it. One of the big 0:15:56.800 --> 0:15:58.920 benefits is that if and I'm not saying you should, 0:15:59.240 --> 0:16:02.360 but if you need to dip into your wrath IRA 0:16:02.480 --> 0:16:04.920 in the future, you'd be able to take out your 0:16:04.960 --> 0:16:08.240 contribution without getting hit with like tax penalties and fees. 0:16:08.760 --> 0:16:12.000 So that's one benefit that it has over a brokerage account. 0:16:12.040 --> 0:16:14.880 And you know, the cap on a wroth IRA being 0:16:14.960 --> 0:16:17.320 like what it is now, sixty five hundred to seven thousand, 0:16:18.240 --> 0:16:20.080 you know, obviously not knowing how much you have to 0:16:20.120 --> 0:16:23.800 put aside, but if you're able to, yeah, hit that cap, 0:16:23.840 --> 0:16:25.520 and then you can at least feel good like, Okay, 0:16:25.760 --> 0:16:28.480 I've ticked this box and you can take your whatever 0:16:28.520 --> 0:16:31.680 proceeds you have left over and shift that into a 0:16:31.760 --> 0:16:34.720 brokerage account. At that point, I think, like many other 0:16:34.760 --> 0:16:35.680 benefits I've. 0:16:36.120 --> 0:16:37.760 Yeah, Well, here's the thing I always say, like to me, 0:16:37.840 --> 0:16:42.320 there's two there's two purposes of investing, investing for retirement 0:16:42.360 --> 0:16:45.720 and investing for wealth. And I think that you should 0:16:45.760 --> 0:16:49.000 prioritize always investing for retirement first because one day your 0:16:49.000 --> 0:16:51.240 eighty yearr sself is gonna be like, oh wow, So 0:16:52.440 --> 0:16:54.800 because of you, I'm eating you know, I'm finding these 0:16:55.120 --> 0:16:57.680 these these birds at the park for these for these breadcrumbs, 0:16:58.120 --> 0:17:00.480 you know what I mean. Like, we don't want to 0:17:00.480 --> 0:17:02.280 put our older self in a position to have to 0:17:02.400 --> 0:17:05.119 work so hard because our younger self was like, oh yikes, 0:17:05.160 --> 0:17:07.680 my bad. So because it's your younger self's job to 0:17:07.720 --> 0:17:10.240 look after your older self. So you know, I want 0:17:10.280 --> 0:17:13.359 you to prioritize investing for retirement first. Typically when people 0:17:13.359 --> 0:17:15.919 put money in a brokerage account, they're investing for wealth, 0:17:15.960 --> 0:17:17.959 which is what we want you to get to. But 0:17:18.000 --> 0:17:21.760 that's after you've done the foundational work of investing for retirement. 0:17:22.119 --> 0:17:25.600 And a roth iray is retirement investing. That's the purpose 0:17:25.640 --> 0:17:28.199 of it. And to Mandy's point, you put money in 0:17:28.280 --> 0:17:31.800 after tax and you get to withdraw it later, you know, 0:17:32.960 --> 0:17:35.159 tax free, because one you've gotten taxed on what you 0:17:35.200 --> 0:17:38.240 contribute already, but also the growth you get to pull 0:17:38.240 --> 0:17:41.000 out tax free as well. So there's a huge benefit 0:17:41.000 --> 0:17:44.439 to a wroth And there's an income max. So I 0:17:44.520 --> 0:17:46.040 think last time I check it was like one hundred 0:17:46.040 --> 0:17:48.200 and twenty five thousand dollars a year if you make 0:17:48.240 --> 0:17:50.560 more than that, although there's some ways around it with 0:17:50.600 --> 0:17:52.800 like a backdoor wroth and YadA, YadA YadA, you would 0:17:52.840 --> 0:17:55.239 sit down with your financial advisor for that. But on 0:17:55.280 --> 0:17:57.440 the surface, there's an income max of I think it's 0:17:57.440 --> 0:17:59.520 one hundred and twenty five thousand at least that's what 0:17:59.560 --> 0:18:01.560 it was like last year or the year before. So 0:18:02.000 --> 0:18:05.000 you know you might over time start making more than that, 0:18:05.040 --> 0:18:06.720 so you want to take advantage of that. Why you can, 0:18:07.760 --> 0:18:10.520 So just in general for everyone, take care of your 0:18:10.520 --> 0:18:13.400 retirement first. After you've taken care of that, then start 0:18:13.400 --> 0:18:15.960 looking to invest for wealth. Retirement means you get to 0:18:15.960 --> 0:18:18.960 take care of your older self. Investing for wealth means 0:18:19.000 --> 0:18:21.040 you get you get to leave a legacy and then 0:18:21.119 --> 0:18:24.919 increase your lifestyle. Now, but you, as a younger person, 0:18:25.080 --> 0:18:29.600 younger than your older self, can wait on the luxurious life, 0:18:29.920 --> 0:18:34.760 whereas your older self cannot wait on basic accommodations and living. 0:18:34.840 --> 0:18:36.080 So take care of that old self. 0:18:36.119 --> 0:18:39.000 Okay, dang, but I want nice things now. 0:18:39.240 --> 0:18:41.080 I know you can have nice things, but you got 0:18:41.080 --> 0:18:42.520 to make sure that. Like because I call my older 0:18:42.560 --> 0:18:45.440 self Wanda, and I'm like, you gotta make sure Wanda 0:18:45.520 --> 0:18:47.360 is good because Wanda is like, I know deare gone? 0:18:47.400 --> 0:18:50.280 Well she not, I have sushi again? So she eats 0:18:50.280 --> 0:18:53.080 sushi and I eat baloney. Got it. 0:18:55.000 --> 0:18:57.760 I'm gonna think about myself fighting for breadcrumbs from the 0:18:57.760 --> 0:19:01.160 pigeons the next time. Rio's like, I want that new tuck, 0:19:01.440 --> 0:19:01.960 new tuck? 0:19:04.480 --> 0:19:06.200 Do you want to pray for break crumbs at the park? 0:19:07.520 --> 0:19:10.320 They be like, what give me the truck? Lady here? 0:19:11.480 --> 0:19:15.320 Make you look bad mom from everybody? Oh my goodness. 0:19:16.040 --> 0:19:17.639 So we hope you enjoyed the b A q A. 0:19:17.800 --> 0:19:20.880 If you have questions, we certainly will try our best 0:19:20.880 --> 0:19:23.560 to answer something. You can hit us up on Insta, 0:19:23.600 --> 0:19:25.320 in the d MS, or even just in the comments 0:19:25.359 --> 0:19:29.720 at we are Brandabish and pod is it part of 0:19:29.800 --> 0:19:35.000 podcasts on podcast Branda Bichon podcasts on Insta, the b 0:19:35.080 --> 0:19:40.320 A the BA podcast on Twitter and we are Brandabision 0:19:40.359 --> 0:19:43.359 podcast dot com. You can click like and ask us 0:19:43.400 --> 0:19:45.800