1 00:00:00,040 --> 00:00:03,600 Speaker 1: An illegal alien from Guatemala charged with raping a child 2 00:00:03,680 --> 00:00:07,480 Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador 3 00:00:07,720 --> 00:00:11,840 Speaker 1: accused of murdering a Texas man of Venezuelan charged with 4 00:00:11,920 --> 00:00:15,840 Speaker 1: filming and selling child pornography in Michigan. These are just 5 00:00:15,920 --> 00:00:19,680 Speaker 1: some of the heinous migrant criminals caught because of President 6 00:00:19,720 --> 00:00:23,320 Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States 7 00:00:23,320 --> 00:00:28,120 Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border 8 00:00:28,160 --> 00:00:31,680 Speaker 1: crossings are at the lowest levels ever recorded, and over 9 00:00:31,760 --> 00:00:34,960 Speaker 1: one hundred thousand illegal aliens have been arrested. If you 10 00:00:35,040 --> 00:00:38,920 Speaker 1: are here illegally, your next you will be fined nearly 11 00:00:39,000 --> 00:00:43,000 Speaker 1: one thousand dollars a day, imprisoned, and deported. You will 12 00:00:43,040 --> 00:00:46,680 Speaker 1: never return. But if you register using our CBP home 13 00:00:46,720 --> 00:00:50,120 Speaker 1: app and leave now, you could be allowed to return legally. 14 00:00:50,479 --> 00:00:55,240 Speaker 1: Do what's right. Leave now. Under President Trump, America's laws, 15 00:00:55,400 --> 00:00:57,840 Speaker 1: border and families will be protected. 16 00:00:57,920 --> 00:01:00,000 Speaker 2: Sponsored by the United States Department of Homeland Security. 17 00:01:00,080 --> 00:01:00,720 Speaker 3: Don't do something. 18 00:01:01,200 --> 00:01:03,520 Speaker 4: Yeah, I don't want to take them too much. I know, 19 00:01:04,000 --> 00:01:04,600 Speaker 4: no take it. 20 00:01:05,360 --> 00:01:06,360 Speaker 3: Shoty gonna get to work too. 21 00:01:06,640 --> 00:01:09,679 Speaker 5: You about to go to work, and so sixteen you 22 00:01:09,760 --> 00:01:11,479 Speaker 5: kind of just threw me that, like the whole alley 23 00:01:11,520 --> 00:01:14,400 Speaker 5: you because when you said defense, play defense, play defense, 24 00:01:15,240 --> 00:01:17,160 Speaker 5: we only talk about things that we're doing, right, and 25 00:01:17,240 --> 00:01:19,840 Speaker 5: so over here Algi like we're like, we got to 26 00:01:19,840 --> 00:01:20,759 Speaker 5: play some defense in some. 27 00:01:20,680 --> 00:01:22,360 Speaker 3: Of these positions that we have. And so there was 28 00:01:22,440 --> 00:01:25,399 Speaker 3: this great guy who talked about in. 29 00:01:25,400 --> 00:01:28,240 Speaker 5: Verse indexes on this episode I think like seventy or 30 00:01:28,240 --> 00:01:32,280 Speaker 5: something like that, and so I don't think people really 31 00:01:32,360 --> 00:01:34,400 Speaker 5: understand what that looks like. So I'm gonna share my 32 00:01:34,440 --> 00:01:37,800 Speaker 5: screen and then we'll go through a little chartist play. 33 00:01:37,840 --> 00:01:47,360 Speaker 5: It'll be quick, I try. All right, we're good, thumbs out, 34 00:01:47,400 --> 00:01:50,920 Speaker 5: y'all can see the screen? Yes, perfect, perfect, perfect perfect. 35 00:01:50,960 --> 00:01:51,680 Speaker 3: Let me go over here. 36 00:01:52,280 --> 00:01:54,200 Speaker 4: Somebody was reading all my tabs. They were like, yo, 37 00:01:54,360 --> 00:01:54,880 Speaker 4: what you're doing. 38 00:01:54,760 --> 00:01:55,400 Speaker 5: On that site? 39 00:01:56,440 --> 00:01:58,440 Speaker 4: But yeah, so obviously I know i'd love to use 40 00:01:58,520 --> 00:02:05,160 Speaker 4: y'allhoo finance it can me oh oh, let me let 41 00:02:05,200 --> 00:02:08,320 Speaker 4: me check the audio real quick. Yeah we're good. You 42 00:02:08,360 --> 00:02:11,600 Speaker 4: can hear me good, I can hear you all right, Yeah, 43 00:02:11,639 --> 00:02:12,760 Speaker 4: we don't have to do this, and. 44 00:02:12,720 --> 00:02:14,760 Speaker 5: So obviously we like I told you all from day one, 45 00:02:14,840 --> 00:02:17,880 Speaker 5: I love using the y'all who finance charge just because 46 00:02:17,880 --> 00:02:20,840 Speaker 5: it's easier visual for me to see, uh, and to 47 00:02:20,919 --> 00:02:24,120 Speaker 5: break down. And so what it inverse index does, It's 48 00:02:24,240 --> 00:02:25,880 Speaker 5: kind of like hedging. So you just laid it out 49 00:02:25,880 --> 00:02:28,119 Speaker 5: perfectly right. You said, there's no point of having a well, 50 00:02:29,040 --> 00:02:31,080 Speaker 5: having a two hundred percent gain is great, but if 51 00:02:31,120 --> 00:02:33,359 Speaker 5: you lose one hundred and seventy five percent of it, 52 00:02:33,440 --> 00:02:35,880 Speaker 5: what's the point. And so when we heard Mark tell 53 00:02:35,960 --> 00:02:37,720 Speaker 5: us that story, we're like, yo, maybe we should start 54 00:02:37,720 --> 00:02:40,480 Speaker 5: figuring out some place to hedge some of these positions 55 00:02:40,520 --> 00:02:43,799 Speaker 5: we got. And so uh, I had a conversation shout 56 00:02:43,800 --> 00:02:47,560 Speaker 5: out to Tally uy Yo alum u Uio University Alum. 57 00:02:47,600 --> 00:02:48,799 Speaker 5: She was like, Yo, I want you to look into 58 00:02:48,880 --> 00:02:53,920 Speaker 5: these positions, and so ESDW let's see, it's one of 59 00:02:53,919 --> 00:02:59,000 Speaker 5: these inverse indexes. And so I'm gonna show you exactly 60 00:02:59,040 --> 00:03:03,080 Speaker 5: what that means. And so as obviously right here it 61 00:03:03,280 --> 00:03:06,760 Speaker 5: tracks the Dow thirty and so if we look at it, 62 00:03:06,919 --> 00:03:10,160 Speaker 5: as the Dow goes up, this position goes down right, 63 00:03:11,120 --> 00:03:18,639 Speaker 5: and as hold on, as the Dow goes down, this 64 00:03:18,800 --> 00:03:22,400 Speaker 5: position goes rises right. So we can see here in March, obviously, 65 00:03:22,400 --> 00:03:24,960 Speaker 5: when Corona happens, look at the price target here for 66 00:03:25,200 --> 00:03:29,040 Speaker 5: sdal right hit a high eighty four. And as we've 67 00:03:29,080 --> 00:03:31,519 Speaker 5: been managing with Corona and dealing with the pandemic and 68 00:03:31,560 --> 00:03:34,120 Speaker 5: the economy has grown, we can see that this is 69 00:03:34,120 --> 00:03:36,840 Speaker 5: trailed down. Some people might be looking at us, like, 70 00:03:36,920 --> 00:03:40,000 Speaker 5: why am I going to invest in anything that treads down? Well, 71 00:03:40,000 --> 00:03:43,080 Speaker 5: here's why, right, it's the same reason Ian just said. 72 00:03:43,200 --> 00:03:45,760 Speaker 5: If you're up to two hundred percent and there's a correction, 73 00:03:46,480 --> 00:03:48,600 Speaker 5: you're going to lose some of that percentage. And so 74 00:03:48,720 --> 00:03:52,480 Speaker 5: let's go back to the last couple of corrections that 75 00:03:52,520 --> 00:03:55,520 Speaker 5: we had, right, We had one in September second and 76 00:03:55,560 --> 00:03:57,320 Speaker 5: I know the date because I took the picture of 77 00:03:57,360 --> 00:04:02,839 Speaker 5: my account and I was like, oh my gosh. 78 00:04:01,320 --> 00:04:03,720 Speaker 4: This is different. How am I going to manage? 79 00:04:04,680 --> 00:04:06,400 Speaker 3: Let me see? Can I see the over there? Let's 80 00:04:06,400 --> 00:04:07,160 Speaker 3: go up a little. 81 00:04:06,960 --> 00:04:11,000 Speaker 5: Bit right, here we go, so you can see market's 82 00:04:11,280 --> 00:04:13,800 Speaker 5: doing great. I think we'rehitting all time hides apples at 83 00:04:13,840 --> 00:04:17,039 Speaker 5: all time high. There's a split, right, it hits a 84 00:04:17,080 --> 00:04:21,880 Speaker 5: low here at sixteen, but then there's a correction and 85 00:04:21,920 --> 00:04:23,320 Speaker 5: you can see the tart. 86 00:04:23,200 --> 00:04:27,160 Speaker 4: Rise, right. And so as this is rising, people are 87 00:04:27,160 --> 00:04:27,760 Speaker 4: making money. 88 00:04:28,080 --> 00:04:30,479 Speaker 5: Right, So some people, when in the options game, this 89 00:04:30,480 --> 00:04:33,400 Speaker 5: would be like a put. Right as the stock the 90 00:04:33,520 --> 00:04:36,280 Speaker 5: option call goes down, the put price goes up. 91 00:04:36,360 --> 00:04:37,200 Speaker 4: So it's the same thing. 92 00:04:37,279 --> 00:04:39,160 Speaker 5: Can actually buy shares in this and so you can 93 00:04:39,200 --> 00:04:42,400 Speaker 5: see it here, right, we got up to sixteen right 94 00:04:42,560 --> 00:04:43,839 Speaker 5: at the end of October. 95 00:04:44,080 --> 00:04:46,400 Speaker 4: We saw it again. Why I took a picture because 96 00:04:46,400 --> 00:04:48,920 Speaker 4: I was like, no, not again, not again. 97 00:04:49,200 --> 00:04:51,039 Speaker 5: And so at the end of October we can see 98 00:04:51,040 --> 00:04:53,320 Speaker 5: it down here, it's hitting it's low and then boom, 99 00:04:53,320 --> 00:04:55,080 Speaker 5: there's another correction at the end of October. 100 00:04:56,040 --> 00:04:59,640 Speaker 4: And so obviously s Dall's price goes up to almost nine. 101 00:05:00,160 --> 00:05:02,800 Speaker 4: It opened that nineteen and it got up to twenty 102 00:05:02,800 --> 00:05:06,720 Speaker 4: one to forty, right, and so ever since you can 103 00:05:06,720 --> 00:05:07,320 Speaker 4: see as. 104 00:05:07,160 --> 00:05:09,760 Speaker 5: The economy grows and the dow grows, this has been 105 00:05:09,760 --> 00:05:13,000 Speaker 5: going down. And everybody's keeps saying, when, wait, there's gonna 106 00:05:13,000 --> 00:05:13,520 Speaker 5: be a correction. 107 00:05:13,560 --> 00:05:16,039 Speaker 4: There's gonna be a correction. When is everything gonna fall? 108 00:05:16,080 --> 00:05:17,560 Speaker 4: That just can't be green all the time. 109 00:05:17,600 --> 00:05:20,159 Speaker 5: And so if that is your thought, then this is 110 00:05:20,200 --> 00:05:22,200 Speaker 5: a position where you can take insurance. 111 00:05:22,880 --> 00:05:23,040 Speaker 3: Right. 112 00:05:23,080 --> 00:05:24,120 Speaker 4: Think of it as insurance. 113 00:05:24,200 --> 00:05:26,720 Speaker 5: Right, If I pay five hundred dollars to get into 114 00:05:26,760 --> 00:05:30,800 Speaker 5: this position, and hey, the economy keeps growing, great, you 115 00:05:30,880 --> 00:05:33,240 Speaker 5: have positions that are gonna hedge this right, that means 116 00:05:33,279 --> 00:05:37,400 Speaker 5: you've gained more. But if there is a correction, right, 117 00:05:37,440 --> 00:05:41,000 Speaker 5: you're gonna make money on the way down. And so 118 00:05:41,040 --> 00:05:42,760 Speaker 5: I want people to keep that in mind. And there's 119 00:05:42,760 --> 00:05:43,760 Speaker 5: plenty of them, right. 120 00:05:43,960 --> 00:05:45,920 Speaker 4: This is just one s That was one I wrote down. 121 00:05:45,920 --> 00:05:46,480 Speaker 4: A few others. 122 00:05:46,560 --> 00:05:50,440 Speaker 5: SDS is one dog Dog, which is an ETF. You 123 00:05:50,480 --> 00:05:53,440 Speaker 5: can buy positions in this and so this is like 124 00:05:53,520 --> 00:05:58,360 Speaker 5: the insurance play. If you're getting nervous, if you're getting apprehensive, 125 00:05:58,440 --> 00:06:00,839 Speaker 5: like wait, this can't be green with time. If you 126 00:06:00,880 --> 00:06:04,800 Speaker 5: feel that way, great, make some insurance plays, hedge your 127 00:06:04,839 --> 00:06:07,760 Speaker 5: bets and play a safe. Play a safe. 128 00:06:08,600 --> 00:06:10,480 Speaker 4: That was it. That's all I want. This is what 129 00:06:10,480 --> 00:06:11,279 Speaker 4: we're actually doing. 130 00:06:11,400 --> 00:06:13,880 Speaker 5: Every time we're doing something and we're like, yo, let's 131 00:06:13,880 --> 00:06:16,080 Speaker 5: show them what we're doing. This is what we're doing, 132 00:06:16,120 --> 00:06:17,960 Speaker 5: and this is how we're trying to say, look, yeah, 133 00:06:18,040 --> 00:06:20,280 Speaker 5: we can make the one hundred percent here, right, But 134 00:06:20,320 --> 00:06:22,479 Speaker 5: if I if I just advocate a little bit of 135 00:06:22,560 --> 00:06:26,359 Speaker 5: funds to hedge it maybe five hundred one thousand dollars 136 00:06:26,360 --> 00:06:27,320 Speaker 5: to some of my plays. 137 00:06:27,960 --> 00:06:30,080 Speaker 4: If I lose that one thousand, that's great. 138 00:06:30,120 --> 00:06:33,320 Speaker 5: That means that my other investments have gone up, right, 139 00:06:33,600 --> 00:06:35,360 Speaker 5: if it goes down, like I said, then we can 140 00:06:35,440 --> 00:06:38,000 Speaker 5: make some money on the way down with our thousand 141 00:06:38,040 --> 00:06:38,719 Speaker 5: dollars investment. 142 00:06:39,200 --> 00:06:40,880 Speaker 6: So the only thing I want to time and say 143 00:06:40,880 --> 00:06:44,159 Speaker 6: for everyone listening, and also for legal reasons, you shouldn't 144 00:06:44,200 --> 00:06:47,039 Speaker 6: have more than ten percent of your account hedging. And 145 00:06:47,080 --> 00:06:49,320 Speaker 6: then also you should not be in a position longer 146 00:06:49,360 --> 00:06:52,040 Speaker 6: than ten days. If you do an equally wayed you're 147 00:06:52,080 --> 00:06:54,440 Speaker 6: basically bettering against the market. And if you look even 148 00:06:54,480 --> 00:06:56,719 Speaker 6: at that was a your one hundred or two hundred, 149 00:06:56,760 --> 00:07:00,720 Speaker 6: that's red. Yeah, yeah, it's not broken above twenty one 150 00:07:00,839 --> 00:07:02,600 Speaker 6: thirty nine in a long time. 151 00:07:02,680 --> 00:07:05,560 Speaker 4: Can you hit max chart for me real quick, sir, please? 152 00:07:09,520 --> 00:07:12,120 Speaker 6: I mean you can see this has been sloping down forever, right, 153 00:07:12,120 --> 00:07:15,760 Speaker 6: but the Twelvey four to twenty max line for that 154 00:07:15,800 --> 00:07:18,880 Speaker 6: two hundred has not been touched, so it's an inverse product. 155 00:07:19,600 --> 00:07:22,040 Speaker 6: But maximum ten days, and I wouldn't have more than 156 00:07:22,240 --> 00:07:24,560 Speaker 6: ten percent of your account hedging because if. 157 00:07:24,440 --> 00:07:26,560 Speaker 4: You do twenty five percent and fifty, you are going 158 00:07:26,600 --> 00:07:28,360 Speaker 4: to get destroyed. And that's the key. Right. 159 00:07:28,440 --> 00:07:30,800 Speaker 5: Well, when I'm talking about investment, I'm not talking about 160 00:07:30,800 --> 00:07:33,640 Speaker 5: your whole time even twenty five percent. We're talking small amounts, 161 00:07:33,640 --> 00:07:35,480 Speaker 5: like I said, five hundred dollars, maybe one hundred dollars. 162 00:07:35,480 --> 00:07:37,640 Speaker 5: If you're doing that just so it offset some of 163 00:07:37,680 --> 00:07:39,560 Speaker 5: the losses that you have in the event of the pressure. 164 00:07:40,640 --> 00:07:42,080 Speaker 2: That's amazing, man, I appreciate that. 165 00:07:43,480 --> 00:07:46,200 Speaker 3: Yeah. Mark Cuban spoke about that on an. 166 00:07:46,160 --> 00:07:49,000 Speaker 4: Episode two that got me thinking, like, wait, he was. 167 00:07:48,960 --> 00:07:51,800 Speaker 7: Saying that, you know, if a lot of people he 168 00:07:51,920 --> 00:07:54,160 Speaker 7: was like, right now, he's hedging a lot of it. 169 00:07:54,480 --> 00:07:56,760 Speaker 3: This story was like, you haven't watched that Mark Cuban episode. 170 00:07:56,760 --> 00:07:57,560 Speaker 3: You got to check it out. 171 00:07:57,920 --> 00:08:00,960 Speaker 7: But you know, the story is legendary how he got 172 00:08:01,560 --> 00:08:06,360 Speaker 7: five billion dollars in Yahoo stopped and Yahoo stock defined 173 00:08:06,480 --> 00:08:09,360 Speaker 7: ninety three percent. But he actually made more money when 174 00:08:09,440 --> 00:08:14,600 Speaker 7: it declined because he had put and he hedged his position. 175 00:08:15,080 --> 00:08:16,960 Speaker 7: And he was saying when he went on CNBC. He 176 00:08:17,080 --> 00:08:19,320 Speaker 7: was going on CNBC and everybody was saying, like, yo, 177 00:08:19,480 --> 00:08:20,280 Speaker 7: do you feel stupid. 178 00:08:20,360 --> 00:08:22,000 Speaker 3: He was like nope. He was like insurance. 179 00:08:22,000 --> 00:08:23,800 Speaker 7: At end of the day, I can sleep at night 180 00:08:24,240 --> 00:08:26,880 Speaker 7: knowing that, you know, if it falls, I'm protected. And 181 00:08:26,960 --> 00:08:29,160 Speaker 7: when it did fall, not only was he protected, but 182 00:08:29,240 --> 00:08:31,800 Speaker 7: he made a boatload of money. And after he told 183 00:08:31,880 --> 00:08:34,319 Speaker 7: us that story. He was saying that right now he 184 00:08:34,559 --> 00:08:36,760 Speaker 7: has hedges on all his stocks, and he was saying 185 00:08:36,840 --> 00:08:41,120 Speaker 7: that he advises people to at the very least thing 186 00:08:41,200 --> 00:08:46,640 Speaker 7: about hedging, because if it goes south, at least you know, 187 00:08:47,000 --> 00:08:49,480 Speaker 7: you can recoup some funds. But if it doesn't go south, 188 00:08:49,960 --> 00:08:52,520 Speaker 7: like choice as an insurance policy, so you don't put 189 00:08:52,559 --> 00:08:55,720 Speaker 7: too much on the hedge, whether it's a port, whether 190 00:08:55,720 --> 00:09:00,520 Speaker 7: it's an inverted each yeah, index, you don't put too 191 00:09:00,640 --> 00:09:03,160 Speaker 7: much on it. It's like insurance, right, like if you 192 00:09:03,280 --> 00:09:06,480 Speaker 7: pay two hundred a month for your car insurance, hopefully 193 00:09:06,520 --> 00:09:09,120 Speaker 7: you definitely get in a car accident, hopefully, but if 194 00:09:09,120 --> 00:09:11,199 Speaker 7: you do get in a car accident, then you got 195 00:09:11,240 --> 00:09:14,440 Speaker 7: the insurance. So it's the same thing. It's the same 196 00:09:14,480 --> 00:09:17,439 Speaker 7: thing with the with the investment. So something to think about. 197 00:09:17,640 --> 00:09:20,679 Speaker 7: You know, everybody can do what they want. Our job 198 00:09:20,760 --> 00:09:21,920 Speaker 7: is not to tell you what to do, just to 199 00:09:21,920 --> 00:09:25,280 Speaker 7: give the information. But something that definitely marked you made 200 00:09:25,280 --> 00:09:27,400 Speaker 7: a point of saying, and. 201 00:09:28,360 --> 00:09:30,480 Speaker 6: And he bought the market like crazy after two thousand 202 00:09:30,480 --> 00:09:33,760 Speaker 6: and three, but he made money on Yahoo shorter and 203 00:09:33,880 --> 00:09:35,120 Speaker 6: then rose the market back. 204 00:09:35,040 --> 00:09:39,240 Speaker 5: Up like h once he said that like all right, 205 00:09:39,280 --> 00:09:41,760 Speaker 5: we gotta this is the reason why this is happening 206 00:09:41,800 --> 00:09:43,319 Speaker 5: right now. We got to start looking at this a 207 00:09:43,320 --> 00:09:45,839 Speaker 5: little different. Like I like what Shotty said, We're not 208 00:09:45,880 --> 00:09:48,520 Speaker 5: telling anybody what to do. We're gonna tell you what 209 00:09:48,640 --> 00:09:51,600 Speaker 5: we're actually doing, and if it can help somebody, great, 210 00:09:52,160 --> 00:09:53,360 Speaker 5: If it can't, that's great too. 211 00:09:53,440 --> 00:09:57,160 Speaker 4: We're just gonna be transparent about what we're doing. 212 00:09:57,600 --> 00:10:00,160 Speaker 7: I had I hedge once again people saying what it's 213 00:10:00,200 --> 00:10:03,240 Speaker 7: a hedge. A hedge is when you're hedging your position 214 00:10:04,200 --> 00:10:07,559 Speaker 7: and whatever you have, you're investing opposite of it. So 215 00:10:07,840 --> 00:10:11,880 Speaker 7: if I'm investing in the stock market right a hedge 216 00:10:12,440 --> 00:10:16,360 Speaker 7: might be the inverted index, where I'm actually also investing 217 00:10:16,400 --> 00:10:18,520 Speaker 7: that the stock market is going to go down. That's 218 00:10:18,559 --> 00:10:21,400 Speaker 7: a hedge. Or you can put a put on a 219 00:10:21,480 --> 00:10:23,480 Speaker 7: stock or a call. You can have If I have 220 00:10:23,640 --> 00:10:26,280 Speaker 7: Apple stock and I think it's going to go down 221 00:10:26,320 --> 00:10:27,640 Speaker 7: in the short term, I might put. 222 00:10:27,559 --> 00:10:28,760 Speaker 3: A put on Apple. 223 00:10:28,840 --> 00:10:31,520 Speaker 7: Or put is the opposite of a call, where you 224 00:10:31,600 --> 00:10:33,480 Speaker 7: actually think that the stock is going to go down. 225 00:10:33,640 --> 00:10:37,200 Speaker 7: That's what Mark Cuban did with his Yahoo stocks. So yeah, 226 00:10:37,240 --> 00:10:41,319 Speaker 7: hedging is pretty much just uh security measure that you 227 00:10:41,360 --> 00:10:46,000 Speaker 7: would take in case it goes opposite from the direction 228 00:10:46,200 --> 00:10:49,240 Speaker 7: that you're invested in. That's pretty much ahead. 229 00:10:50,280 --> 00:10:52,839 Speaker 2: That was like, that was good. 230 00:10:54,280 --> 00:10:55,000 Speaker 3: You're not go a lot of time. 231 00:10:55,040 --> 00:10:56,959 Speaker 7: People only think that you're gonna invest one way. When 232 00:10:56,960 --> 00:10:59,120 Speaker 7: you think about the investment, you think about investments going up. 233 00:10:59,640 --> 00:11:01,760 Speaker 7: But you could also invest in investments going down. You 234 00:11:01,760 --> 00:11:03,640 Speaker 7: can make a lot of money. To Big Short Wanted 235 00:11:03,800 --> 00:11:07,680 Speaker 7: a great, great movie, great book. And during two thousand 236 00:11:07,679 --> 00:11:11,040 Speaker 7: and eight, during the financial crisis, a few guys made 237 00:11:11,120 --> 00:11:16,199 Speaker 7: billions of dollars because they bet on mortgages falling apart 238 00:11:16,960 --> 00:11:20,320 Speaker 7: and it happened. And when it happened, they got paid out. 239 00:11:20,360 --> 00:11:23,800 Speaker 7: Crazy actually had to make products. Those products wasn't even 240 00:11:23,840 --> 00:11:25,959 Speaker 7: actually out, They made those products just for them. 241 00:11:26,200 --> 00:11:29,120 Speaker 3: It's a very good movie. I encourage everybody to watch it. 242 00:11:29,520 --> 00:11:31,120 Speaker 6: Yeah, I'm gonna drop a link to where you guys 243 00:11:31,160 --> 00:11:33,920 Speaker 6: can go and back test what allocation would be right 244 00:11:34,000 --> 00:11:34,160 Speaker 6: for you. 245 00:11:34,320 --> 00:11:35,319 Speaker 4: So you're just not hearing it. 246 00:11:36,480 --> 00:11:38,760 Speaker 6: You can go to portfolio visualize it though, and go 247 00:11:38,840 --> 00:11:42,040 Speaker 6: to back test portfolio and see if you had ten 248 00:11:42,080 --> 00:11:45,000 Speaker 6: percent of your portfolio versus what you have now, how 249 00:11:45,080 --> 00:11:46,760 Speaker 6: well it we'll do. And then also bonds like bonds 250 00:11:46,880 --> 00:11:49,120 Speaker 6: is a good way to hedge as well. But play 251 00:11:49,200 --> 00:11:50,959 Speaker 6: with that and see what allocation is right for you 252 00:11:51,080 --> 00:11:53,839 Speaker 6: based on where you are financially, so you're not just 253 00:11:53,920 --> 00:11:56,800 Speaker 6: running out and doing something incredibly risky. 254 00:11:57,040 --> 00:11:59,200 Speaker 3: And gold to old used to be a hedge too, 255 00:11:59,240 --> 00:12:01,240 Speaker 3: but now gold is kind of moving in the same perfection. 256 00:12:01,880 --> 00:12:05,079 Speaker 7: Yeah, I don't know if that's a hedge anymore, but 257 00:12:05,720 --> 00:12:08,160 Speaker 7: that's also so you can also have different allocation. Yeah, 258 00:12:08,200 --> 00:12:10,440 Speaker 7: we can do a whole Euil University class about heges 259 00:12:10,720 --> 00:12:12,400 Speaker 7: because it's actually a lot more now that I'm thinking 260 00:12:12,400 --> 00:12:13,679 Speaker 7: about it. There's a lot of different ways how you 261 00:12:13,760 --> 00:12:14,160 Speaker 7: can hedge. 262 00:12:14,840 --> 00:12:18,000 Speaker 6: Also insurance, but people don't talk about assurance or. 263 00:12:18,040 --> 00:12:21,280 Speaker 3: Act I was just about to say that's crazy. 264 00:12:21,280 --> 00:12:22,840 Speaker 7: I was just about to literally, I was just about 265 00:12:22,880 --> 00:12:25,000 Speaker 7: to say that, like a whole life insurance definitely is 266 00:12:25,000 --> 00:12:25,400 Speaker 7: a hedge. 267 00:12:26,160 --> 00:12:28,040 Speaker 3: I know everybody's gonna jump in the comment it's like 268 00:12:28,280 --> 00:12:30,839 Speaker 3: my whole life. You're not here to tell you what 269 00:12:30,920 --> 00:12:31,079 Speaker 3: to do. 270 00:12:31,240 --> 00:12:33,360 Speaker 7: But it definitely can be used as a hedge because 271 00:12:33,880 --> 00:12:36,760 Speaker 7: it's not depending on the stock market. It's guaranteed and 272 00:12:36,840 --> 00:12:39,800 Speaker 7: it's through dividends, so when the stock market goes down, 273 00:12:39,880 --> 00:12:41,960 Speaker 7: whole life pole the cash value can still go up. 274 00:12:42,480 --> 00:12:45,880 Speaker 7: So yeah, fixed interest investments definitely could be a hedge, 275 00:12:46,360 --> 00:12:50,400 Speaker 7: not only against inflation, so you can hedge against inflation 276 00:12:50,440 --> 00:12:52,360 Speaker 7: as well. This is an ongoing conversation. We can have 277 00:12:52,400 --> 00:12:55,560 Speaker 7: a whole about this, but yeah, there's more than one 278 00:12:55,600 --> 00:12:58,280 Speaker 7: way to skin a cat. So Ian was saying, you know, 279 00:12:58,400 --> 00:13:01,480 Speaker 7: as far as me, I'm still practicing as an advisor. 280 00:13:01,760 --> 00:13:03,800 Speaker 7: People might not know that, but I still have my 281 00:13:03,880 --> 00:13:06,559 Speaker 7: financial planning business. So he thought it would be a 282 00:13:06,600 --> 00:13:10,280 Speaker 7: good idea if I kind of give like an example 283 00:13:11,040 --> 00:13:13,839 Speaker 7: of what somebody would do if they came into, you know, 284 00:13:14,000 --> 00:13:15,719 Speaker 7: a windfall of money, because you are talking about like 285 00:13:15,960 --> 00:13:18,080 Speaker 7: a portfolio and to diversify. 286 00:13:18,280 --> 00:13:20,520 Speaker 3: But it's like, what does that mean? Like what I mean? 287 00:13:20,600 --> 00:13:22,800 Speaker 3: So it's like, all right, this is like a sample 288 00:13:23,360 --> 00:13:25,760 Speaker 3: of what I would you recommend a client to do. 289 00:13:26,960 --> 00:13:27,680 Speaker 4: Earners, What's up? 290 00:13:27,800 --> 00:13:30,760 Speaker 5: You ever walk into a small business and everything just works, 291 00:13:31,200 --> 00:13:34,480 Speaker 5: Like the checkout is fast, the seats are digital, tipping 292 00:13:34,760 --> 00:13:37,160 Speaker 5: is a breeze, and you're out the door before the 293 00:13:37,240 --> 00:13:41,600 Speaker 5: line even builds. Odds are they're using Square? We love 294 00:13:41,640 --> 00:13:44,680 Speaker 5: supporting businesses that run on Square because it just feels seamless, 295 00:13:44,960 --> 00:13:47,480 Speaker 5: whether it's a local coffee shop, a vendor at a 296 00:13:47,559 --> 00:13:50,360 Speaker 5: pop up market or even one of our merch partners. 297 00:13:50,640 --> 00:13:54,400 Speaker 5: Square makes it easy for them to take payments, manage inventory, 298 00:13:54,520 --> 00:13:58,280 Speaker 5: and run their business with confidence, all from one simple system. 299 00:13:58,920 --> 00:14:01,480 Speaker 5: If you're a business owner or even just thinking about 300 00:14:01,559 --> 00:14:04,599 Speaker 5: launching something soon, Square is hands down one of the 301 00:14:04,679 --> 00:14:08,080 Speaker 5: best tools out there to help you start, run, and grow. 302 00:14:08,440 --> 00:14:11,400 Speaker 5: It's not just about payments, it's about giving you time 303 00:14:11,520 --> 00:14:14,440 Speaker 5: back so you can focus on what matters most ready. 304 00:14:14,480 --> 00:14:17,840 Speaker 5: To see how Square can transform your business, visit Square 305 00:14:17,920 --> 00:14:22,440 Speaker 5: dot com backslash go backslash eyl to learn more that 306 00:14:22,640 --> 00:14:28,080 Speaker 5: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate, 307 00:14:28,240 --> 00:14:30,560 Speaker 5: Let Square handle the back end so you can keep 308 00:14:30,640 --> 00:14:36,680 Speaker 5: pushing your vision forward. This episode is brought to you 309 00:14:36,760 --> 00:14:39,000 Speaker 5: by P and C Bank. A lot of people think 310 00:14:39,080 --> 00:14:42,920 Speaker 5: podcasts about work are boring, and sure, they definitely can be, 311 00:14:43,480 --> 00:14:46,720 Speaker 5: but understanding a professional's routine shows us how they achieve 312 00:14:46,760 --> 00:14:50,960 Speaker 5: their success little by little, day after day. It's like 313 00:14:51,080 --> 00:14:53,840 Speaker 5: banking with P and C Bank. It might seem boring 314 00:14:53,880 --> 00:14:56,640 Speaker 5: to save, plan and make calculated decisions with your bank, 315 00:14:57,200 --> 00:14:59,600 Speaker 5: but keeping your money boring is what helps you live 316 00:14:59,760 --> 00:15:02,720 Speaker 5: or more more happily fulfilled. Life. P and C Bank 317 00:15:03,240 --> 00:15:08,040 Speaker 5: Brilliantly Boring since eighteen sixty five. Brilliantly Boring since eighteen 318 00:15:08,080 --> 00:15:10,880 Speaker 5: sixty five is a service mark of the PNC Financial 319 00:15:10,920 --> 00:15:15,560 Speaker 5: Service Group, Inc. P and C Bank National Association Member FDIC. 320 00:15:17,360 --> 00:15:20,960 Speaker 1: An illegal alien from Guatemala charged with raping a child 321 00:15:21,040 --> 00:15:24,840 Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador 322 00:15:25,080 --> 00:15:29,200 Speaker 1: accused of murdering a Texas man of Venezuelan charged with 323 00:15:29,320 --> 00:15:33,160 Speaker 1: filming and selling child pornography in Michigan. These are just 324 00:15:33,280 --> 00:15:37,000 Speaker 1: some of the heinous migrant criminals caught because of President 325 00:15:37,080 --> 00:15:40,600 Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States 326 00:15:40,680 --> 00:15:45,440 Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border 327 00:15:45,520 --> 00:15:49,000 Speaker 1: crossings are at the lowest levels ever recorded, and over 328 00:15:49,120 --> 00:15:52,280 Speaker 1: one hundred thousand illegal aliens have been arrested. If you 329 00:15:52,400 --> 00:15:56,240 Speaker 1: are here illegally, your next you will be fined nearly 330 00:15:56,360 --> 00:16:00,360 Speaker 1: one thousand dollars a day, imprisoned, and deported. You will 331 00:16:00,440 --> 00:16:04,040 Speaker 1: never return. But if you register using our CBP home 332 00:16:04,080 --> 00:16:07,440 Speaker 1: app and leave now, you could be allowed to return legally. 333 00:16:07,840 --> 00:16:12,520 Speaker 1: Do what's right. Leave now. Under President Trump, America's laws, 334 00:16:12,760 --> 00:16:15,160 Speaker 1: border and families will be protected. 335 00:16:15,280 --> 00:16:17,360 Speaker 2: Sponsored by the United States Department of Homeland Security. 336 00:16:17,680 --> 00:16:21,000 Speaker 7: Then once again, everybody's situation is different. This is just 337 00:16:21,120 --> 00:16:25,440 Speaker 7: the general idea framework. And somebody like came into my 338 00:16:25,480 --> 00:16:27,360 Speaker 7: office and I had a conversation. But I just wanted 339 00:16:27,360 --> 00:16:30,320 Speaker 7: to kind of give some give you kind of framework 340 00:16:30,400 --> 00:16:33,440 Speaker 7: of like a financial plan, because we haven't really talked 341 00:16:33,440 --> 00:16:36,000 Speaker 7: about like that too much. So like a financial plan. 342 00:16:36,160 --> 00:16:40,440 Speaker 7: So we picked the magical number one million dollars. So 343 00:16:41,160 --> 00:16:43,280 Speaker 7: and picked the thirty five year old, right, thirty five 344 00:16:43,360 --> 00:16:45,960 Speaker 7: year old to one million dollars. So if you have 345 00:16:46,280 --> 00:16:49,160 Speaker 7: one million dollars, say in a life insurance policy, that 346 00:16:49,440 --> 00:16:51,880 Speaker 7: was you know, you got the reason why I say, 347 00:16:51,880 --> 00:16:54,720 Speaker 7: the life insurance doesn't tax free, so you'll get one 348 00:16:54,760 --> 00:16:56,520 Speaker 7: million dollars as no taxes that you have to pay. 349 00:16:57,920 --> 00:17:00,200 Speaker 7: So out of that one million, the first thing I 350 00:17:00,240 --> 00:17:03,920 Speaker 7: would suggest somebody to do his payoff debt the first day. 351 00:17:04,080 --> 00:17:08,200 Speaker 7: So you know, the average American household has fifty seven 352 00:17:08,320 --> 00:17:12,040 Speaker 7: hundred dollars a credit card debt, and depending on where 353 00:17:12,040 --> 00:17:14,159 Speaker 7: you live in the country, that that's even low. Like 354 00:17:14,240 --> 00:17:15,639 Speaker 7: what I mean like a lot of people have a 355 00:17:15,680 --> 00:17:17,960 Speaker 7: lot higher than that. But I would take at least 356 00:17:17,960 --> 00:17:20,560 Speaker 7: ten thousand dollars to pay off credit, especially credit card debt. 357 00:17:20,640 --> 00:17:22,159 Speaker 7: That would be like the first thing that I would do. 358 00:17:22,840 --> 00:17:26,879 Speaker 7: Then I would put money in savings online savings account. 359 00:17:27,280 --> 00:17:30,840 Speaker 7: So you know, thirty five hundred dollars is the average 360 00:17:30,880 --> 00:17:35,919 Speaker 7: American savings thirty five hundred. So we talk about stocks, 361 00:17:35,960 --> 00:17:38,119 Speaker 7: and we talk about you know, long term investing, but 362 00:17:38,520 --> 00:17:41,760 Speaker 7: me personally, I don't feel like anybody should invest before 363 00:17:42,000 --> 00:17:46,720 Speaker 7: they have their credit card debt paid off. If it's reasonable, 364 00:17:47,119 --> 00:17:50,919 Speaker 7: and savings, you gotta learn to save. Cash is trash, 365 00:17:51,359 --> 00:17:55,240 Speaker 7: very true, but but you have to have some money 366 00:17:55,280 --> 00:17:57,640 Speaker 7: in savings because what happens is that if you don't 367 00:17:57,640 --> 00:18:00,399 Speaker 7: have money in savings, your investments become your saving. So 368 00:18:00,480 --> 00:18:04,440 Speaker 7: when your tire blows, or you get sick, or your 369 00:18:04,520 --> 00:18:07,760 Speaker 7: dog needs to go to the veterinarian, all of these things, 370 00:18:08,160 --> 00:18:09,680 Speaker 7: you got to have an emergency fund. 371 00:18:09,760 --> 00:18:10,119 Speaker 3: You got to. 372 00:18:10,320 --> 00:18:12,760 Speaker 7: So I'm a big proponent and having at least six 373 00:18:12,880 --> 00:18:15,280 Speaker 7: months at least six months of living expenses in the 374 00:18:15,320 --> 00:18:19,440 Speaker 7: emergency funds. So I would put fifty thousand dollars into 375 00:18:19,920 --> 00:18:22,359 Speaker 7: an online savings account. The reason why I say online 376 00:18:22,359 --> 00:18:25,320 Speaker 7: savings account has a higher interest rates slightly higher than 377 00:18:25,400 --> 00:18:28,280 Speaker 7: brick and mortar, and I like to separate. I don't 378 00:18:28,280 --> 00:18:30,320 Speaker 7: want to have all my eggs in one basket. So 379 00:18:30,440 --> 00:18:32,560 Speaker 7: like me, I bank with Chase, but I have my 380 00:18:32,680 --> 00:18:36,359 Speaker 7: online savings with Capital One. So for a couple of 381 00:18:36,359 --> 00:18:39,000 Speaker 7: different reasons, A, I just don't want to have all 382 00:18:39,040 --> 00:18:42,639 Speaker 7: your eggs in one basket, and then be psychologically for me, 383 00:18:43,040 --> 00:18:45,639 Speaker 7: it's a lot less tempting to transfer money from It's 384 00:18:45,640 --> 00:18:47,440 Speaker 7: because you got to go to a whole different app 385 00:18:48,000 --> 00:18:50,720 Speaker 7: and it takes like three days to take the money out. 386 00:18:50,800 --> 00:18:53,240 Speaker 7: So it's like the whole point of the online savings 387 00:18:53,320 --> 00:18:55,000 Speaker 7: is just out of sight, out of mind. You don't 388 00:18:55,000 --> 00:18:57,240 Speaker 7: really want to even think about it. With Chase app, 389 00:18:57,280 --> 00:18:59,680 Speaker 7: I go in there every day and I would see 390 00:18:59,720 --> 00:19:02,040 Speaker 7: that on my Chase app if I had to on 391 00:19:02,080 --> 00:19:04,520 Speaker 7: my own line savings that Chase, So that's just something 392 00:19:04,560 --> 00:19:07,040 Speaker 7: to think about. I would put seventy five thousand into 393 00:19:07,040 --> 00:19:08,600 Speaker 7: a five to twenty nine plan. The reason why I 394 00:19:08,600 --> 00:19:11,719 Speaker 7: say seventy five thousand if I person had kids, because 395 00:19:11,800 --> 00:19:14,000 Speaker 7: now you can frontload the five twenty nine five years, 396 00:19:14,640 --> 00:19:16,840 Speaker 7: so that allows you to put a maximum amount. And 397 00:19:16,880 --> 00:19:18,440 Speaker 7: whenever you get a lump sum like that, you know 398 00:19:18,520 --> 00:19:20,560 Speaker 7: you always want to compound the entrest. So the more 399 00:19:20,560 --> 00:19:22,399 Speaker 7: money you can put it up front, the better. So 400 00:19:22,640 --> 00:19:24,840 Speaker 7: I would frontload it for five years. Now front loader, 401 00:19:24,880 --> 00:19:26,440 Speaker 7: you can't put more money in for five years, but 402 00:19:26,480 --> 00:19:28,560 Speaker 7: at least you have that seventy five thousand right away 403 00:19:28,600 --> 00:19:32,119 Speaker 7: that's working. And you know, depending on the state that 404 00:19:32,160 --> 00:19:33,720 Speaker 7: you live, and you get a state tax deduction for 405 00:19:33,760 --> 00:19:35,520 Speaker 7: five to twenty nine plans as well, So we talked 406 00:19:35,560 --> 00:19:39,240 Speaker 7: about that. I would put seventy five thousand into an 407 00:19:39,320 --> 00:19:42,240 Speaker 7: ut month. The reason why the UTMA not the five 408 00:19:42,240 --> 00:19:43,639 Speaker 7: to twenty nine is that you once to gain, you 409 00:19:43,720 --> 00:19:46,359 Speaker 7: want to diversify. Five twenty nine is great for college 410 00:19:46,400 --> 00:19:48,800 Speaker 7: and education, but what if the kid doesn't want to 411 00:19:48,840 --> 00:19:50,320 Speaker 7: go to college, or what if you know what I'm saying, 412 00:19:50,400 --> 00:19:54,920 Speaker 7: like the ain't thinking happened. So the utmaches provides more flexibility, 413 00:19:56,320 --> 00:19:58,640 Speaker 7: and you know, I would invest in something that we've 414 00:19:58,680 --> 00:19:59,720 Speaker 7: talked about before, like a. 415 00:20:01,520 --> 00:20:03,720 Speaker 3: You know ETF that is broad range. 416 00:20:03,720 --> 00:20:06,159 Speaker 7: Get broad range exposure to the stock market to a 417 00:20:06,200 --> 00:20:07,960 Speaker 7: lot of the top ten companies, so you don't have 418 00:20:08,040 --> 00:20:11,080 Speaker 7: to like risk it with penny stocks or something like that. 419 00:20:11,400 --> 00:20:13,159 Speaker 7: It's your kids future. You don't want to take too 420 00:20:13,240 --> 00:20:16,359 Speaker 7: much risk with that. Life insurance is something that you 421 00:20:16,440 --> 00:20:19,200 Speaker 7: definitely need to have. It's an important part of the 422 00:20:19,280 --> 00:20:22,840 Speaker 7: financial planning process. So no matter how you go about it, 423 00:20:22,920 --> 00:20:24,800 Speaker 7: whether you get term insurance, if you're thirty five, you 424 00:20:24,800 --> 00:20:27,400 Speaker 7: can probably get a million dollar term insurance p six 425 00:20:27,480 --> 00:20:30,440 Speaker 7: hundred dollars a year. Healthy, if you're in good shape, 426 00:20:30,640 --> 00:20:33,479 Speaker 7: you get like six hundred dollars a year. Now, granted, 427 00:20:33,480 --> 00:20:35,320 Speaker 7: you're not gonna make any money off that because it's 428 00:20:35,400 --> 00:20:37,800 Speaker 7: term and it only lasts like, let's say twenty years, 429 00:20:37,880 --> 00:20:40,399 Speaker 7: But twenty years is still a long time, you know 430 00:20:40,440 --> 00:20:43,159 Speaker 7: what I mean. So it's like, I personally think that 431 00:20:44,040 --> 00:20:46,360 Speaker 7: a million dollars is something that at the very least 432 00:20:46,800 --> 00:20:50,040 Speaker 7: most people in today's society should try to aim for 433 00:20:50,560 --> 00:20:54,800 Speaker 7: when it comes to life insurance size, because if you're 434 00:20:54,800 --> 00:20:57,159 Speaker 7: thinking about it, you're taking care of your family or 435 00:20:57,280 --> 00:21:00,600 Speaker 7: at least one child. A million dollars not really that 436 00:21:00,800 --> 00:21:02,640 Speaker 7: much money in the grand scheme of things, because it's 437 00:21:02,680 --> 00:21:04,680 Speaker 7: like that has to last their whole life. That's replacing 438 00:21:04,760 --> 00:21:07,639 Speaker 7: your your earning potential. So if you make one hundred 439 00:21:07,640 --> 00:21:11,280 Speaker 7: thousand dollars a year, a million dollars cover is ten 440 00:21:11,400 --> 00:21:14,000 Speaker 7: years of your of your salary. Yeah, you know, you 441 00:21:14,080 --> 00:21:17,280 Speaker 7: look at it from that standpoint. So the life insurance 442 00:21:17,320 --> 00:21:19,320 Speaker 7: is something I definitely would encourage. Like I said, you 443 00:21:19,359 --> 00:21:21,359 Speaker 7: can do term, you can do whole life. That's a 444 00:21:21,400 --> 00:21:24,320 Speaker 7: whole conversation within itself. I would probably put one hundred 445 00:21:24,320 --> 00:21:28,439 Speaker 7: thousand dollars into idea. Idea A lot of people might 446 00:21:28,480 --> 00:21:30,399 Speaker 7: not be familiar with that is that is called the 447 00:21:30,480 --> 00:21:34,879 Speaker 7: deferred income of So either the ideas are great plays, 448 00:21:35,040 --> 00:21:38,360 Speaker 7: especially for retirement or long term. Like this is why 449 00:21:38,720 --> 00:21:40,600 Speaker 7: when you see a lot of athletes can get contract, 450 00:21:40,680 --> 00:21:42,400 Speaker 7: some of them they get DEAs. One of the probably 451 00:21:42,400 --> 00:21:46,240 Speaker 7: the most famous DEA in our recent time is Alan Iverson. 452 00:21:46,920 --> 00:21:48,680 Speaker 7: So a lot of people are very familiar with that 453 00:21:48,800 --> 00:21:52,800 Speaker 7: Rebot contract where I think it pays him like one 454 00:21:52,840 --> 00:21:55,440 Speaker 7: point five million, like starting like in two years, he 455 00:21:55,520 --> 00:21:57,200 Speaker 7: gets like one point five million for the rest of 456 00:21:57,280 --> 00:22:01,240 Speaker 7: his life. What they did with that was that it 457 00:22:01,359 --> 00:22:03,800 Speaker 7: was part of his contract that a portion of the 458 00:22:03,920 --> 00:22:05,879 Speaker 7: money that was paid to him went into a. 459 00:22:05,960 --> 00:22:08,040 Speaker 3: DA which is a referred income annuity. 460 00:22:08,160 --> 00:22:10,640 Speaker 7: So it sits in an annuity contract and it could 461 00:22:10,640 --> 00:22:13,280 Speaker 7: be set up a fifteen thirty high a loan you want, 462 00:22:13,440 --> 00:22:15,640 Speaker 7: but like let's says you put ten million dollars into 463 00:22:15,720 --> 00:22:18,840 Speaker 7: a deal and then in fifteen years now that ten 464 00:22:18,880 --> 00:22:22,840 Speaker 7: million will pay a lifetime income of one million dollars. Right, 465 00:22:23,160 --> 00:22:25,399 Speaker 7: So it's it's similar to like how like the lottery. 466 00:22:25,440 --> 00:22:29,080 Speaker 7: You can do the same thing with lottery. So that's 467 00:22:29,160 --> 00:22:32,639 Speaker 7: great because now you defer, you defer. So it's like 468 00:22:32,760 --> 00:22:35,399 Speaker 7: if you blow everything and at least you know you 469 00:22:35,520 --> 00:22:39,480 Speaker 7: got that coming to you every single year. So especially 470 00:22:39,600 --> 00:22:42,440 Speaker 7: for some people that have some amounts of money, the 471 00:22:42,560 --> 00:22:43,840 Speaker 7: DA is definitely a great idea. 472 00:22:44,520 --> 00:22:46,440 Speaker 3: After that, I would. 473 00:22:46,280 --> 00:22:50,359 Speaker 7: Invest four hundred thousand dollars into the market, a split 474 00:22:50,440 --> 00:22:53,280 Speaker 7: between ETF and tech stocks, even some mutual funds, so 475 00:22:53,880 --> 00:22:58,960 Speaker 7: like FK, D and X We talked about that, XLK, XI, SMH, 476 00:22:59,080 --> 00:23:05,040 Speaker 7: you know regulars tech stocks, the obvious Apple, Microsoft, Tesla, Amazon, 477 00:23:05,520 --> 00:23:08,159 Speaker 7: things in that nature. Because it's like you don't really 478 00:23:08,240 --> 00:23:11,760 Speaker 7: necessarily have to try to hit home runs when you 479 00:23:11,920 --> 00:23:15,400 Speaker 7: guarantee doubles, Like you know what I'm saying. You guarantee 480 00:23:15,440 --> 00:23:18,520 Speaker 7: the double, you're guaranteed to have twenty points every every game. 481 00:23:18,600 --> 00:23:21,600 Speaker 7: You don't need to try to score fifty. So in 482 00:23:21,720 --> 00:23:24,280 Speaker 7: my brain, those all make sense. They all have strong 483 00:23:24,359 --> 00:23:25,760 Speaker 7: track records, they all want to be here for a 484 00:23:25,840 --> 00:23:28,440 Speaker 7: long time. The next one hundred and fifty thousand, I 485 00:23:28,440 --> 00:23:29,920 Speaker 7: would take more risk with it. If that's what you 486 00:23:30,000 --> 00:23:32,720 Speaker 7: want to do. You can allocate that to stock options, 487 00:23:33,080 --> 00:23:37,000 Speaker 7: you can allocate that to cryptocurrency, to future trading, to 488 00:23:37,320 --> 00:23:40,159 Speaker 7: a little bit more like risky ETFs not risky, but 489 00:23:40,320 --> 00:23:42,280 Speaker 7: like you know, like a TAN or IV be if 490 00:23:42,280 --> 00:23:45,080 Speaker 7: you want to look at like biotech or renewable energy, 491 00:23:45,160 --> 00:23:47,680 Speaker 7: where I don't want to say it that's risky because 492 00:23:47,680 --> 00:23:50,639 Speaker 7: I believe in biotech and renewable energy, but it's a 493 00:23:50,720 --> 00:23:52,359 Speaker 7: lot that goes into play with that, right, It's a 494 00:23:52,400 --> 00:23:55,720 Speaker 7: lot of variable to the political standpoint, whether it's you know, 495 00:23:55,960 --> 00:23:59,520 Speaker 7: the drugs work, but biotech industry is still it's still 496 00:23:59,640 --> 00:24:03,520 Speaker 7: more volatile. In the next ten years, then you know, 497 00:24:04,119 --> 00:24:07,120 Speaker 7: a QQQ would be or a Franklin Diamond tech point. 498 00:24:08,359 --> 00:24:10,640 Speaker 7: And then the next one hundred and forty thousand dollars 499 00:24:10,680 --> 00:24:14,399 Speaker 7: I would have as alternative cash money. So you might 500 00:24:14,520 --> 00:24:16,280 Speaker 7: want to you know, start a business, or you might 501 00:24:16,359 --> 00:24:18,399 Speaker 7: want to invest in real estate, or you know, you 502 00:24:18,480 --> 00:24:20,600 Speaker 7: might want to do a variety of different things outside 503 00:24:20,640 --> 00:24:24,680 Speaker 7: of just regular investment. That standpoint, I would allocate that 504 00:24:25,560 --> 00:24:29,160 Speaker 7: so that's my breakdown, that's my million dollar breakdown. 505 00:24:30,520 --> 00:24:34,280 Speaker 6: That's what percentage of the deal does that give per year, 506 00:24:34,400 --> 00:24:35,359 Speaker 6: Like what's the average return? 507 00:24:35,840 --> 00:24:38,960 Speaker 7: Yeah, so it really depends because there's a few different 508 00:24:39,000 --> 00:24:41,200 Speaker 7: factors on like how long you leave it in. It 509 00:24:41,400 --> 00:24:43,119 Speaker 7: really depends on really how long you leave it in 510 00:24:43,640 --> 00:24:46,920 Speaker 7: and the interest rate that that the insurance company pays. 511 00:24:46,960 --> 00:24:49,439 Speaker 7: So we really have to run what's called like an 512 00:24:49,480 --> 00:24:55,600 Speaker 7: illustration to actually give like a real spot on answer 513 00:24:55,640 --> 00:25:01,120 Speaker 7: to that question. But you know, usually it usually will 514 00:25:01,200 --> 00:25:04,399 Speaker 7: grow in a fixed capacity in around like three to 515 00:25:04,480 --> 00:25:09,080 Speaker 7: four to five percent annually rate of return on the 516 00:25:10,000 --> 00:25:11,840 Speaker 7: type of on that type of product. So you can 517 00:25:11,920 --> 00:25:14,880 Speaker 7: kind of compound that over the course of ten years, 518 00:25:15,440 --> 00:25:17,359 Speaker 7: thirty years, something like that, and then that's that's what 519 00:25:17,480 --> 00:25:17,800 Speaker 7: you'll get. 520 00:25:19,119 --> 00:25:21,640 Speaker 6: And as you guys come into these lumpsums, you want safety, 521 00:25:21,840 --> 00:25:23,840 Speaker 6: like you think that you will just throw it off 522 00:25:23,880 --> 00:25:25,040 Speaker 6: to the wind and be like, hey, let me just 523 00:25:25,080 --> 00:25:27,920 Speaker 6: put it all in one company. But if you lose 524 00:25:28,000 --> 00:25:31,879 Speaker 6: it and people don't think that financial room can hurt you. 525 00:25:31,960 --> 00:25:36,959 Speaker 6: But like every recession, people die, commit suicide, people make 526 00:25:37,000 --> 00:25:42,359 Speaker 6: bad investments, get hurt, like lose your career. So the 527 00:25:42,480 --> 00:25:44,639 Speaker 6: more money you accumulate the safer that you want to be. 528 00:25:45,240 --> 00:25:46,760 Speaker 2: I know some of you are in a growth. 529 00:25:46,520 --> 00:25:49,119 Speaker 6: Phase and you're looking to grow, but even with that, 530 00:25:49,320 --> 00:25:50,920 Speaker 6: you still need to go look at what the drawdown 531 00:25:50,960 --> 00:25:54,200 Speaker 6: of those companies are. Because if a company is drawn 532 00:25:54,280 --> 00:25:58,360 Speaker 6: down twenty eight percent thirty percent every two years, it's 533 00:25:58,440 --> 00:25:59,840 Speaker 6: not a place that you want to Because what if 534 00:25:59,840 --> 00:26:03,399 Speaker 6: you hit it hard twenty twenty, twenty twenty one, and 535 00:26:03,520 --> 00:26:05,880 Speaker 6: next year you put your money into the risky asset set, 536 00:26:06,440 --> 00:26:08,120 Speaker 6: and now you give up two years of your life 537 00:26:08,160 --> 00:26:10,800 Speaker 6: and all this hard work and study. The more money 538 00:26:10,840 --> 00:26:14,800 Speaker 6: you actimulate, please like go to safer vehicles that are 539 00:26:14,800 --> 00:26:15,600 Speaker 6: available to you. 540 00:26:16,160 --> 00:26:18,920 Speaker 7: And you know what an another thing too, is that 541 00:26:20,320 --> 00:26:22,680 Speaker 7: so you can really use that type of formula for 542 00:26:22,760 --> 00:26:25,600 Speaker 7: any amount of money. Right, if you have a thousand, 543 00:26:25,760 --> 00:26:28,280 Speaker 7: if you have fifty thousand, right, Like, so what you 544 00:26:28,400 --> 00:26:31,600 Speaker 7: do is you just you just lower the amount of 545 00:26:31,680 --> 00:26:34,679 Speaker 7: money relative and how much money you have. So if 546 00:26:34,800 --> 00:26:36,240 Speaker 7: you have a one hundred thousand, if you have fifty 547 00:26:36,280 --> 00:26:38,080 Speaker 7: thousand dollars, right, obviously you're not gonna be able to 548 00:26:38,080 --> 00:26:40,200 Speaker 7: invest four hundred thousand dollars if you have two thousand dollars. 549 00:26:40,280 --> 00:26:42,040 Speaker 3: But would you would do the same thing. 550 00:26:42,400 --> 00:26:45,240 Speaker 7: So if you had one hundred thousand, I wouldn't really 551 00:26:45,320 --> 00:26:47,639 Speaker 7: recommend more than like fifteen percent of that into the 552 00:26:47,720 --> 00:26:50,840 Speaker 7: more riskier type of investments. So that would mean fifteen 553 00:26:50,920 --> 00:26:55,560 Speaker 7: thousand dollars will go into your crypto futures options bucket. 554 00:26:56,280 --> 00:27:00,000 Speaker 7: You might put you know, ten thousand or thirty thousand 555 00:27:00,080 --> 00:27:03,200 Speaker 7: dollars into your kids college fund, you know. So it's like, 556 00:27:03,280 --> 00:27:06,320 Speaker 7: if you got ten thousand dollars, you might invest fifteen 557 00:27:06,440 --> 00:27:10,360 Speaker 7: hundred dollars into bitcoin, and then you might invest three 558 00:27:10,440 --> 00:27:13,520 Speaker 7: thousand dollars into your kids college fund. So the numbers 559 00:27:13,600 --> 00:27:16,040 Speaker 7: really aren't the most important thing. Just wanting to use 560 00:27:16,040 --> 00:27:18,040 Speaker 7: a million dollars because that's a nice round number, and 561 00:27:18,119 --> 00:27:19,960 Speaker 7: that's something that a lot of people are fired to 562 00:27:20,080 --> 00:27:22,600 Speaker 7: become millionaires. So it's like, all right, you always head 563 00:27:22,640 --> 00:27:25,480 Speaker 7: these stories about this athletes entertainers and everybody you know 564 00:27:25,600 --> 00:27:28,240 Speaker 7: criticizes them. But it's like, all right, when you get there, 565 00:27:28,680 --> 00:27:30,760 Speaker 7: cause you know you can get there too. It's not 566 00:27:30,840 --> 00:27:33,560 Speaker 7: like it's impossible to get a million dollars, So yeah, 567 00:27:34,119 --> 00:27:36,600 Speaker 7: you gotta be paid. Like the worst thing that could 568 00:27:36,640 --> 00:27:38,159 Speaker 7: happen is that you get there and you're not. 569 00:27:38,240 --> 00:27:42,480 Speaker 3: Prepared, and then you have no plan. Oh my god, yeah, yeah, 570 00:27:42,840 --> 00:27:45,679 Speaker 3: what happens from here? You don't have to plan. You're 571 00:27:45,920 --> 00:27:47,720 Speaker 3: I mean, you're either gonna either gonna two things a 572 00:27:47,720 --> 00:27:48,120 Speaker 3: gonna happen. 573 00:27:48,119 --> 00:27:49,560 Speaker 7: You're gonna end up bowing it, or you're gonna be 574 00:27:49,600 --> 00:27:51,840 Speaker 7: so scared that you're just gonna have it in your 575 00:27:51,840 --> 00:27:55,800 Speaker 7: savings or frightened, scared out your mind. The worst thing 576 00:27:55,920 --> 00:27:57,879 Speaker 7: is to be scared with money. And it's like, you 577 00:27:58,000 --> 00:28:00,320 Speaker 7: have money. You waited your whole life to get money, 578 00:28:00,520 --> 00:28:03,240 Speaker 7: You've got it, and now you're scared to death because 579 00:28:03,280 --> 00:28:04,040 Speaker 7: you don't want to lose it. 580 00:28:05,040 --> 00:28:07,200 Speaker 6: Hold on, yep, there's another game on a side of 581 00:28:07,200 --> 00:28:10,000 Speaker 6: the fence once you acquire it. I'd rather you guys 582 00:28:10,119 --> 00:28:12,600 Speaker 6: learned this now than when it's too late and it's 583 00:28:12,760 --> 00:28:14,920 Speaker 6: it's almost okay now if you have it in cash. 584 00:28:14,960 --> 00:28:16,800 Speaker 6: But what about what if they bump interest rates to 585 00:28:17,240 --> 00:28:21,359 Speaker 6: two point eight or three percent? Like inflation is going 586 00:28:21,440 --> 00:28:22,080 Speaker 6: to eat you alive? 587 00:28:24,240 --> 00:28:29,480 Speaker 5: My graduates from my school being forced back drop bag drop, 588 00:28:30,119 --> 00:28:32,520 Speaker 5: Mike drop backdrop drop. 589 00:28:43,000 --> 00:28:46,640 Speaker 1: An illegal alien from Guatemala charged with raping a child 590 00:28:46,720 --> 00:28:50,480 Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador 591 00:28:50,760 --> 00:28:54,840 Speaker 1: accused of murdering a Texas man of Venezuelan charged with 592 00:28:54,960 --> 00:28:58,840 Speaker 1: filming and selling child pornography in Michigan. These are just 593 00:28:58,960 --> 00:29:02,680 Speaker 1: some of the heinous migrant criminals caught because of President 594 00:29:02,760 --> 00:29:06,280 Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States 595 00:29:06,360 --> 00:29:11,120 Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border 596 00:29:11,200 --> 00:29:14,680 Speaker 1: crossings are at the lowest levels ever recorded, and over 597 00:29:14,800 --> 00:29:17,960 Speaker 1: one hundred thousand illegal aliens have been arrested. If you 598 00:29:18,080 --> 00:29:21,880 Speaker 1: are here illegally, your next you will be fine nearly 599 00:29:22,040 --> 00:29:25,960 Speaker 1: one thousand dollars a day, imprisoned, and deported. You will 600 00:29:26,080 --> 00:29:29,680 Speaker 1: never return. But if you register using our CBP home 601 00:29:29,760 --> 00:29:33,120 Speaker 1: app and leave now, you could be allowed to return legally. 602 00:29:33,520 --> 00:29:38,160 Speaker 1: Do what's right. Leave now. Under President Trump, America's laws, 603 00:29:38,440 --> 00:29:40,840 Speaker 1: border and families will be protected. 604 00:29:40,960 --> 00:29:43,080 Speaker 2: Sponsored by the United States Department of Homeland Security.