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Speaker 1: It's time for the big a q a a to

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Speaker 1: be a cute A would just say the big a

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Speaker 1: qute a man dead, be a cute dad to be

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Speaker 1: a cute a Aanda.

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Speaker 2: Hi, gorgeous.

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Speaker 1: Your curls aren't popping, but this hair is everything.

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Speaker 2: The curls are laid. Yes.

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Speaker 1: First of all, Mandy has think of Rudy Huxtable and

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Speaker 1: then multiple that time is four, all right, that usually

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Speaker 1: my goal as a little girl. I'm like, if I

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Speaker 1: could just get Rudy Huxtable.

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Speaker 2: Hair, the hair, right, not the looks, No, I.

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Speaker 1: Think, what's Reudy hostile? It is beautiful?

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Speaker 2: Key to Napoleon, no, I know, but like do I

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Speaker 2: look like Homie? No?

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Speaker 1: No, No, I'm talking about the hair, because you know,

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Speaker 1: you have this big, beautiful hair, and she always has.

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Speaker 1: A little girl had like this beautiful head of natural hair,

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Speaker 1: and that was like jelly of all that beautiful hair.

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Speaker 1: And so you're given as I was, but Keysa Napoleum

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Speaker 1: is dropped dead girl. She was a cute. Rudy was

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Speaker 1: the cutest and then she's a beautiful woman. Think you

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Speaker 1: you know, but yes, her her hair was always like

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Speaker 1: goals for me because you know, they always tell the

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Speaker 1: little black girls that, like, your hair can't grow long,

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Speaker 1: and meanwhile, here was Rudy with her natural head of

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Speaker 1: super long, beautiful, like textured hair, which I'm like, that's

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Speaker 1: not true because Rudy's hair is to the middle of

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Speaker 1: her back and she's a black girl, and.

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Speaker 2: So the middle of the back was the ultimate flex girl.

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Speaker 2: My hair to the middle of my back. I don't,

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Speaker 2: I can't, I never. I'm not that. It doesn't matter.

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Speaker 2: I'm not that yeah yeah, yeah, but think you no.

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Speaker 1: But yeah, it just looks really cute because you don't

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Speaker 1: really straighten it off.

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Speaker 2: And I was like, look, it's February, so you will

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Speaker 2: see the blowouts more often because this is the one

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Speaker 2: month a year when the de point is low enough

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Speaker 2: for me to mess with it because it takes so

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Speaker 2: much time, like energy to protect it from humidity. But

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Speaker 2: I mean to say, who.

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Speaker 1: But one of my sisters has like a beautiful wig

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Speaker 1: that that's the texture. And I was like, yes, lay,

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Speaker 1: I'm like I.

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Speaker 2: Wouldn't get a wig honestly, girl, No, no, But they

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Speaker 2: were so much when you just don't feel like it's

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Speaker 2: like putting on a hat with hair on it, like

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Speaker 2: come on. Now you feel.

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Speaker 1: Like your hair is going to be like, don't get

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Speaker 1: this thing off me, Mayna, you have too much here.

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Speaker 1: It's gonna get helmet.

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Speaker 2: Like you're hearing like micro corn corn rows to get

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Speaker 2: that done.

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Speaker 1: Give it them straight backs.

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Speaker 2: All right, the grass is always green. I'll take it.

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Speaker 2: So we're recording a podcast, hi anyway?

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Speaker 1: Anyway, right, So, so you know every Friday we do

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Speaker 1: Brown Ambition question answers. If you have questions, we have

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Speaker 1: some answers. Here's the think caveats of the caveats. We're

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Speaker 1: not your financial advisor, your financial planner. We're not your

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Speaker 1: your attorney, your doctor. We're just two really smart, super

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Speaker 1: cute brown girls on the interwebs who know a thing

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Speaker 1: that you about career, business, and money, honey. And so

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Speaker 1: we can give some advice with the smallest of the

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Speaker 1: smallest grains of salt. But you're going to lean into

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Speaker 1: the people that you pay to get, like, you know,

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Speaker 1: to stretch that grain of salt and to make it

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Speaker 1: work for you. Okay, deal z'all. So we usually do

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Speaker 1: two questions, and so I think we should do a

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Speaker 1: quick one first. It's a Monday week.

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Speaker 2: I'm excited.

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Speaker 1: Yeah, you want me to read Monica's question off.

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Speaker 2: Ig yes, because I can't find it well.

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Speaker 1: Also to the best place to ask questions is to

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Speaker 1: slide into our dms on ig oh, which is brown,

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Speaker 1: Ambish and podcast. So Momo aka Monica says, it's borrowing

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Speaker 1: money from your four one k a smart move to

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Speaker 1: pay off the dance.

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Speaker 2: Oh well, when you've read this question to me? Actually,

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Speaker 2: I said, my response was like I would have a

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Speaker 2: very different answer to this like five ten years ago,

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Speaker 2: when everything was so black and white financially, and I

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Speaker 2: don't know if my response probably like five ten years

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Speaker 2: ago had been like, oh no, that's silly. You're robbing

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Speaker 2: Peter to pay Paul and Paul is you in the future? Wait, no,

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Speaker 2: Peter is you're the one getting robbed? Okay, Bible, it's great,

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Speaker 2: you in the future is who you're screwing over. But

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Speaker 2: you know, like my feeling now is, yeah, if it

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Speaker 2: makes sense, like if it's a four one k loan

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Speaker 2: that is, you know, zero interest and you pay yourself

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Speaker 2: back to your paycheck, that can be an option. I

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Speaker 2: feel like it's better than a you know better than

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Speaker 2: you know what other option would there be to paydown

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Speaker 2: debt if not forcing more money.

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Speaker 1: Right balance stress for cards, potentially.

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Speaker 2: More credit debt if you have issues with that, I'm

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Speaker 2: not Yeah, I.

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Speaker 1: Guess to your point, man, like what kind of debt

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Speaker 1: are we talking about? Like an installment loan, talking about

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Speaker 1: credit card debt, but if you talk about credit card debt,

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Speaker 1: there are balanced trendsfer cards. I mean, but that really

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Speaker 1: only works if your credit score is decent.

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Speaker 2: And then you still got to pay it down. You

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Speaker 2: still have the debt. It's just that now hopefully you

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Speaker 2: have a zero percent intro APR for ten, twelve months

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Speaker 2: or whatever, yes, to pay it down.

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Speaker 1: There's also like a you know, loan from a financial institution,

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Speaker 1: ideally like a credit union, where the interest rate is

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Speaker 1: not as high as like a loan from like a

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Speaker 1: Big Bangs. So that's an option. But to your point

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Speaker 1: that it's still borrowing money, it's basically about where you're

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Speaker 1: going to borrow from. Now Here is the kafiat the

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Speaker 1: thing before the thing for the thing that any of

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Speaker 1: these options, whether it's borrowing money from credit union, borrowing

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Speaker 1: money from your four one K, like doing a home

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Speaker 1: mecher you line of credit out of your home if

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Speaker 1: you own a home that these institutions pay people that

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Speaker 1: are really smart with math, called actuaries and actuaries their

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Speaker 1: job is to do math on math, on math on

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Speaker 1: math to see how much money that they're likely to

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Speaker 1: get from you if you make certain choices right. So

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Speaker 1: actuaries this is how they get like if you can

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Speaker 1: get life insurance or like now you eighty child, you're

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Speaker 1: not likely to be here long life insurance policy deny

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Speaker 1: because we're not going to get our money back from you.

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Speaker 1: But an actuary is going to look at, you know,

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Speaker 1: the likelihood of the bank making more money than not

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Speaker 1: when it comes to helping you with your debt. So no,

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Speaker 1: that basically they're betting against you. You know, like when

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Speaker 1: people are like, oh, I'm going to get a balanced

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Speaker 1: transfer card, I'm like that other card. You don't want

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Speaker 1: to have transferred all your money to this card, and

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Speaker 1: now you have two cards and you run up the

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Speaker 1: old car that you've paid off in the balance transfer,

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Speaker 1: and now you owe two people and so but that's

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Speaker 1: honestly what financial institutions are betting on that you. It's

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Speaker 1: still going to be same old you navigating your finances

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Speaker 1: in that way. And so to Mandy's point that like,

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Speaker 1: it's not necessarily a terrible idea to borrow from your

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Speaker 1: forward k.

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Speaker 2: We real quick, because I don't have the question in

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Speaker 2: front of me. I can't find it. But is it

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Speaker 2: is he asking to just take money out? Because there's

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Speaker 2: a big difference we should talk about between you.

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Speaker 1: Okay, So it says borrow money from your fell one.

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Speaker 2: K okay, because taking a chunk out we don't like

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Speaker 2: that now with no intended putting it back in. Plus

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Speaker 2: there's taxes, early penalty withdrawals, you know, but if.

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Speaker 1: You don't pay it back, this is what I'm meaning,

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Speaker 1: is that, like there is the potential for not paying

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Speaker 1: it back, and then that's when you follow your that's

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Speaker 1: when you fall into trouble. I used to see all

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Speaker 1: the time when I worked as a preschool teacher. I

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Speaker 1: would say that we didn't go by that a teacher

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Speaker 1: was not telling me she was borrowing money from her

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Speaker 1: four one K, And I remember my dad would be like,

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Speaker 1: don't forget you have until basically at the end of

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Speaker 1: the year you have to pay it back. But they

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Speaker 1: would be borring and borrowing and borring, and then it

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Speaker 1: all of a sudden, is not a borrow, it's a withdrawal,

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Speaker 1: and now all of a sudden you pay taxes and

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Speaker 1: penalties on that. And so I just say all that

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Speaker 1: to say that like that is the aim because they

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Speaker 1: make money off the penalties. And so just be mindful that, like,

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Speaker 1: if you're going to borrow, are you someone who has

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Speaker 1: the means and the discipline to actually pay it back?

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Speaker 1: If not, there might be a better way to navigate

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Speaker 1: versus taking from your four one K.

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Speaker 2: And I'll add to that just quickly. When you take

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Speaker 2: a loan from your four one K and it's with

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Speaker 2: through your employers for a one K and you're actively employed,

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Speaker 2: you can take a loan out and just you'll pay

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Speaker 2: it back on your paycheck each month and it all

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Speaker 2: happens automatically and you pay yourself. Even with my husband,

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Speaker 2: we took a loanout from his government version of a

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Speaker 2: four one K, which is a TSP when we were

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Speaker 2: doing the home right now and I think we needed

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Speaker 2: something more and we just ran out of cash, so

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Speaker 2: he did a loan. It was maybe like ten K,

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Speaker 2: and you actually pay interest back to yourself too, So

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Speaker 2: it worked out in that sense. But the caveat there

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Speaker 2: is that if you lose your job, if you're fired

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Speaker 2: or you walk away, then that loan can become due

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Speaker 2: very quickly and you may not have the cash to

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Speaker 2: pay it back. So yeah, there's pros and cons to everything,

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Speaker 2: but I'm yeah, I think that's for.

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Speaker 1: A compounding interest, you know, like you know that ten thousand,

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Speaker 1: you know, I mean you guys put into the house,

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Speaker 1: so you know there's this return there. But if you're

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Speaker 1: using it to pay down debt, potentially it's like, oh,

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Speaker 1: that that ten thousand, what could it have grown to

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Speaker 1: if it had been left there? But these are the

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Speaker 1: things you have to weigh because if you owe, if

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Speaker 1: the day you owe has thirty percent, like thirty percent

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Speaker 1: interest rate chat, you're not making ad in the market,

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Speaker 1: not likely, So it might make more sense to be like,

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Speaker 1: it's better. The best I can give myself is, you know,

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Speaker 1: getting rid of this debt that's costing me so much money.

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Speaker 2: And to our were We had a guest this week

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Speaker 2: called Vivian too, your rich bff, and what she said

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Speaker 2: about you know how you can only save what you

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Speaker 2: can save, but you can always earn more money, and

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Speaker 2: I think your ability to earn more money has should

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Speaker 2: factor into that too. Are you someone who has more

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Speaker 2: working years, are you, you know, coming up on promotions

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Speaker 2: like really achieving more and looking for more in the future.

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Speaker 2: And in that case, maybe it's something that you'll you'll

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Speaker 2: make up for in the future. But only you can

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Speaker 2: know that. You sit with yourself, but you know it.

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Speaker 2: Do it smart? Do it smart? Yes, and don't come

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Speaker 2: to us crying if it doesn't work out, because where

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Speaker 2: we just say whatever we want.

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Speaker 1: You want to take a break, Mandy and come on back?

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Speaker 2: I do Oh? Should I took us? Yes, let's take

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Speaker 2: a quick break. I take a slip of my smoothie.

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Speaker 2: Now I have like blueberry kale teeth that's special for

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Speaker 2: watching on YouTube. What a treat.

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Speaker 1: And weird back and black and brother than ever. All right,

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Speaker 1: it's our second question of the week. Man, you got

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Speaker 1: it or you want me to do it?

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Speaker 2: Oh? I would love to wait? Right? I think it's

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Speaker 2: bright flaming green. Here we go. All right, hey, ladies

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Speaker 2: from Erica on IG I have received an inheritance of

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Speaker 2: over two hundred thousand dollars and I can't decide. I

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Speaker 2: know this is super Girl in the future, like just

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Speaker 2: getting a windfall. I have received an inheritance of over

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Speaker 2: two hundred K and can't decide what to do with

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Speaker 2: the money. I have been debating on paying my home

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Speaker 2: off I owe one hundred and fifty four thousand dollars

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Speaker 2: or purchasing an investment property. Please help, I just don't

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Speaker 2: want to make the wrong choice. I feel like this

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Speaker 2: is my only opportunity to build and generate wealth for

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Speaker 2: my family. Thanks in advance, OW very sorry for your loss.

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Speaker 1: However, it is okay coin some one y'all know. I

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Speaker 1: bought my condo cash, which was not the smartest financial choice,

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Speaker 1: but it was the smartest tiffany choice because of where

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Speaker 1: I was and whatever. So but to me, the smarter

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Speaker 1: financial choice unless your interest rate on your home is astronomical,

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Speaker 1: which you know, the likelihood is. I'm assuming you bought

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Speaker 1: your home if you owe one to fifty four, because

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Speaker 1: homes are so expensive now, you probably bought it, you know,

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Speaker 1: with seven interest yeah, or maybe before interest rates hit

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Speaker 1: like seventy seven percent. I don't know where they are now,

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Speaker 1: but maybe you got it when they were when it

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Speaker 1: was two percent, three percent, even five percent. That being said,

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Speaker 1: paying off your home, that's great, but that money's literally

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Speaker 1: just sitting there. It's almost like paying off your home

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Speaker 1: is like the equivalent of like having your money in

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Speaker 1: the savings account with like you know, a low interest

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Speaker 1: bearing savings account, which okay, with.

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Speaker 2: No insurance back. Ye, maybe you have home insurance, I guess, but.

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Speaker 1: Yes, you know, but like actually putting your money to work.

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Speaker 1: And so I'm saying, is that someone who didn't do that.

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Speaker 1: I'm not mad about myself not doing it because I

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Speaker 1: did it consciously for other reasons. Emotionally, I need to

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Speaker 1: be in a place where I didn't have to worry

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Speaker 1: about a mortgage. But later I am likely to pull

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Speaker 1: money out and then put it to work. But at

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Speaker 1: least for now, you know, like for the smarter financial choice,

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Speaker 1: which is what you're asking about, like actually investing your money.

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Speaker 1: And if the second choice is to purchase an investment property,

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Speaker 1: that is you're going to make more money. You're more

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Speaker 1: likely to make more money with that choice, you know,

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Speaker 1: looking for an investment property, multi family house, you know,

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Speaker 1: even like commercial property, something that's going to generate some

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Speaker 1: income for you. I don't know where you live, but yeah,

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Speaker 1: that is going to be the more income, the more

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Speaker 1: likely option for generating like income, and wealth for yourself

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Speaker 1: because then there's a cycle.

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Speaker 2: Right.

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Speaker 1: So, so you purchased this next property, it's a three

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Speaker 1: family house. I'm just making it up. You put down,

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Speaker 1: you know whatever, the two hundred thousand or one fifty

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Speaker 1: or whatever, depending where you purchased the property. You know,

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Speaker 1: you're starting to pay that on a mortgage with the

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Speaker 1: rent that you're getting, and then the property potentially appreciates.

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Speaker 1: It doesn't happen everywhere, but say you live in New Jersey,

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Speaker 1: We've been appreciating over and over and over. That property

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Speaker 1: is now worth more. Now you've had four hundred thousand

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Speaker 1: dollars inside that home that you can now pull out

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Speaker 1: some of it to purchase the next property, and so

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Speaker 1: like that is one of the ways that people start

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Speaker 1: to grow a real estate portfolio by like leveraging the

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Speaker 1: equity in one home, pulling it out and then purchasing

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Speaker 1: the next piece of property. That was the plan for Drelling,

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Speaker 1: Like before he passed away. We've gotten the house from

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Speaker 1: the City of Newark, paid ten thousand dollars for it,

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Speaker 1: renovated it for about one hundred and thirty thousand. The

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Speaker 1: house is then worth almost three hundred thousand. We were

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Speaker 1: going to pull money out of that house, rent out

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Speaker 1: that house, pull money out, and then buy the next

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Speaker 1: property and do it again and again until you know,

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Speaker 1: until it was time for him to retire, and hopefully

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Speaker 1: would have had maybe four or five homes by then

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Speaker 1: that he could then manage and that would be his

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Speaker 1: income in retirement. And so, you know, I think it's

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Speaker 1: a great idea, but you know, just be mindful, like

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Speaker 1: you know you want to be a landlord, because that

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Speaker 1: ain't easy, you know, although there are companies that can

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Speaker 1: help you manage. So I would do all my research

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Speaker 1: before jumping out the window about what it looks like

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Speaker 1: to manage a property and like what those costs look like.

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Speaker 2: In the meantime, put it to work, just in an

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Speaker 2: investment account. I mean, I know that there's you know,

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Speaker 2: I'm not a financial I'm not your financial planner, but

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Speaker 2: I think first piece of advice we forgot just get

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Speaker 2: a financial like an investment advisor. I think if you

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Speaker 2: plan on like investing the money or putting it into

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Speaker 2: a you know, an index fund or whatever way, so

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Speaker 2: that it can at least be cooking and you know,

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Speaker 2: creating returns for you, I mean dividends talked about that.

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Speaker 2: If we talk about like an investment property, you can

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Speaker 2: like physically think of a tenant giving you a check

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Speaker 2: with money each month. But stocks can do that too

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Speaker 2: if you invest into dividend stocks, and then dividends are

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Speaker 2: literally just money that the companies pay you for investing

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Speaker 2: in their stock, like a thanks for sticking with us

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Speaker 2: type thing. And I love to look at my dividends

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Speaker 2: that I've earned and be like, oh, hey, we made

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Speaker 2: extra money, money that I didn't even put in, almost

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Speaker 2: like an employer match, but they're not matching, but they're

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Speaker 2: giving you a little something something. Anyway, I think investment

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Speaker 2: property or paying off your house are two big options,

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Speaker 2: but they're not the only one. So there's nothing wrong

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Speaker 2: with like tifle. If you decide like you're not ready

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Speaker 2: to be a landlord, doesn't fit your lifestyle right now,

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Speaker 2: just put that money to work and you can invest

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Speaker 2: it and then invest it wisely. That's why I'm saying

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Speaker 2: get an advisor because they can help you make sure

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Speaker 2: that you're not too risky with it if you plan

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Speaker 2: on using it, or they may say, hey, if you're

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Speaker 2: going to use it on an investment property, let's put

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Speaker 2: into a high yield savings account that you can easily

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Speaker 2: get to and put the other half in the market,

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Speaker 2: et cetera. But two hundred case sounds like so much money,

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Speaker 2: but it could like if you really wanted to last,

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Speaker 2: like you know, provide for your family, it's going to

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Speaker 2: have to be invested in some way, form or fashion.

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Speaker 2: So congratulations. With great money comes great responsibility.

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Speaker 1: So I'm so glad you're thinking about it, you know

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Speaker 1: what I mean, Like like would have blown through it.

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Speaker 1: You know, this would have been like girl, you know,

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Speaker 1: buy a car and a you know, a little wardrobe

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Speaker 1: before you know it, You're like, damn back where I

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Speaker 1: was before, you know. So you know, one of the

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Speaker 1: things they tell you when you when you win the

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Speaker 1: lottery is don't do anything with the money for the

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Speaker 1: first six months. Do what Mandy said, right, you know,

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Speaker 1: put it somewhere, you know, because it's under two fifty,

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Speaker 1: it's protected in a savings account, high yield. Sit with

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Speaker 1: a financial advisor, create the plan, and then be like, Okay,

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Speaker 1: now I feel fairly confident that I can move forward.

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Speaker 1: You know that I'm not just jumping out the window.

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Speaker 1: So congratulations twice for Erica for getting that inheritance, but

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Speaker 1: then also really being strategic about how you want to

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Speaker 1: spend it.

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Speaker 2: So thank you being fan for your questions. Hit us up.

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Speaker 2: We're at Brown Ambition Podcast on Instagram. Send us all

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Speaker 2: your questions and we hope to see y'all next week

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Speaker 2: for another episode of Brown Ambition Q and a yeah,

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Speaker 2: and for.

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Speaker 1: This episode and the one before and then one before

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Speaker 1: and then onmberfore. Okay, stop trying to keep it to.

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Speaker 2: Yourself, so forwarded okay for yeah yeah, send it to

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Speaker 2: a friend, Send it to a friend, to a friend

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Speaker 2: to a friend. Bye,