Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.
Speaker 3: Don't do something.
Speaker 4: Yeah, I don't want to take them too much. I know,
Speaker 4: no take it.
Speaker 3: Shoty gonna get to work too.
Speaker 5: You about to go to work, and so sixteen you
Speaker 5: kind of just threw me that, like the whole alley
Speaker 5: you because when you said defense, play defense, play defense,
Speaker 5: we only talk about things that we're doing, right, and
Speaker 5: so over here Algi like we're like, we got to
Speaker 5: play some defense in some.
Speaker 3: Of these positions that we have. And so there was
Speaker 3: this great guy who talked about in.
Speaker 5: Verse indexes on this episode I think like seventy or
Speaker 5: something like that, and so I don't think people really
Speaker 5: understand what that looks like. So I'm gonna share my
Speaker 5: screen and then we'll go through a little chartist play.
Speaker 5: It'll be quick, I try. All right, we're good, thumbs out,
Speaker 5: y'all can see the screen? Yes, perfect, perfect, perfect perfect.
Speaker 3: Let me go over here.
Speaker 4: Somebody was reading all my tabs. They were like, yo,
Speaker 4: what you're doing.
Speaker 5: On that site?
Speaker 4: But yeah, so obviously I know i'd love to use
Speaker 4: y'allhoo finance it can me oh oh, let me let
Speaker 4: me check the audio real quick. Yeah we're good. You
Speaker 4: can hear me good, I can hear you all right, Yeah,
Speaker 4: we don't have to do this, and.
Speaker 5: So obviously we like I told you all from day one,
Speaker 5: I love using the y'all who finance charge just because
Speaker 5: it's easier visual for me to see, uh, and to
Speaker 5: break down. And so what it inverse index does, It's
Speaker 5: kind of like hedging. So you just laid it out
Speaker 5: perfectly right. You said, there's no point of having a well,
Speaker 5: having a two hundred percent gain is great, but if
Speaker 5: you lose one hundred and seventy five percent of it,
Speaker 5: what's the point. And so when we heard Mark tell
Speaker 5: us that story, we're like, yo, maybe we should start
Speaker 5: figuring out some place to hedge some of these positions
Speaker 5: we got. And so uh, I had a conversation shout
Speaker 5: out to Tally uy Yo alum u Uio University Alum.
Speaker 5: She was like, Yo, I want you to look into
Speaker 5: these positions, and so ESDW let's see, it's one of
Speaker 5: these inverse indexes. And so I'm gonna show you exactly
Speaker 5: what that means. And so as obviously right here it
Speaker 5: tracks the Dow thirty and so if we look at it,
Speaker 5: as the Dow goes up, this position goes down right,
Speaker 5: and as hold on, as the Dow goes down, this
Speaker 5: position goes rises right. So we can see here in March, obviously,
Speaker 5: when Corona happens, look at the price target here for
Speaker 5: sdal right hit a high eighty four. And as we've
Speaker 5: been managing with Corona and dealing with the pandemic and
Speaker 5: the economy has grown, we can see that this is
Speaker 5: trailed down. Some people might be looking at us, like,
Speaker 5: why am I going to invest in anything that treads down? Well,
Speaker 5: here's why, right, it's the same reason Ian just said.
Speaker 5: If you're up to two hundred percent and there's a correction,
Speaker 5: you're going to lose some of that percentage. And so
Speaker 5: let's go back to the last couple of corrections that
Speaker 5: we had, right, We had one in September second and
Speaker 5: I know the date because I took the picture of
Speaker 5: my account and I was like, oh my gosh.
Speaker 4: This is different. How am I going to manage?
Speaker 3: Let me see? Can I see the over there? Let's
Speaker 3: go up a little.
Speaker 5: Bit right, here we go, so you can see market's
Speaker 5: doing great. I think we'rehitting all time hides apples at
Speaker 5: all time high. There's a split, right, it hits a
Speaker 5: low here at sixteen, but then there's a correction and
Speaker 5: you can see the tart.
Speaker 4: Rise, right. And so as this is rising, people are
Speaker 4: making money.
Speaker 5: Right, So some people, when in the options game, this
Speaker 5: would be like a put. Right as the stock the
Speaker 5: option call goes down, the put price goes up.
Speaker 4: So it's the same thing.
Speaker 5: Can actually buy shares in this and so you can
Speaker 5: see it here, right, we got up to sixteen right
Speaker 5: at the end of October.
Speaker 4: We saw it again. Why I took a picture because
Speaker 4: I was like, no, not again, not again.
Speaker 5: And so at the end of October we can see
Speaker 5: it down here, it's hitting it's low and then boom,
Speaker 5: there's another correction at the end of October.
Speaker 4: And so obviously s Dall's price goes up to almost nine.
Speaker 4: It opened that nineteen and it got up to twenty
Speaker 4: one to forty, right, and so ever since you can
Speaker 4: see as.
Speaker 5: The economy grows and the dow grows, this has been
Speaker 5: going down. And everybody's keeps saying, when, wait, there's gonna
Speaker 5: be a correction.
Speaker 4: There's gonna be a correction. When is everything gonna fall?
Speaker 4: That just can't be green all the time.
Speaker 5: And so if that is your thought, then this is
Speaker 5: a position where you can take insurance.
Speaker 3: Right.
Speaker 4: Think of it as insurance.
Speaker 5: Right, If I pay five hundred dollars to get into
Speaker 5: this position, and hey, the economy keeps growing, great, you
Speaker 5: have positions that are gonna hedge this right, that means
Speaker 5: you've gained more. But if there is a correction, right,
Speaker 5: you're gonna make money on the way down. And so
Speaker 5: I want people to keep that in mind. And there's
Speaker 5: plenty of them, right.
Speaker 4: This is just one s That was one I wrote down.
Speaker 4: A few others.
Speaker 5: SDS is one dog Dog, which is an ETF. You
Speaker 5: can buy positions in this and so this is like
Speaker 5: the insurance play. If you're getting nervous, if you're getting apprehensive,
Speaker 5: like wait, this can't be green with time. If you
Speaker 5: feel that way, great, make some insurance plays, hedge your
Speaker 5: bets and play a safe. Play a safe.
Speaker 4: That was it. That's all I want. This is what
Speaker 4: we're actually doing.
Speaker 5: Every time we're doing something and we're like, yo, let's
Speaker 5: show them what we're doing. This is what we're doing,
Speaker 5: and this is how we're trying to say, look, yeah,
Speaker 5: we can make the one hundred percent here, right, But
Speaker 5: if I if I just advocate a little bit of
Speaker 5: funds to hedge it maybe five hundred one thousand dollars
Speaker 5: to some of my plays.
Speaker 4: If I lose that one thousand, that's great.
Speaker 5: That means that my other investments have gone up, right,
Speaker 5: if it goes down, like I said, then we can
Speaker 5: make some money on the way down with our thousand
Speaker 5: dollars investment.
Speaker 6: So the only thing I want to time and say
Speaker 6: for everyone listening, and also for legal reasons, you shouldn't
Speaker 6: have more than ten percent of your account hedging. And
Speaker 6: then also you should not be in a position longer
Speaker 6: than ten days. If you do an equally wayed you're
Speaker 6: basically bettering against the market. And if you look even
Speaker 6: at that was a your one hundred or two hundred,
Speaker 6: that's red. Yeah, yeah, it's not broken above twenty one
Speaker 6: thirty nine in a long time.
Speaker 4: Can you hit max chart for me real quick, sir, please?
Speaker 6: I mean you can see this has been sloping down forever, right,
Speaker 6: but the Twelvey four to twenty max line for that
Speaker 6: two hundred has not been touched, so it's an inverse product.
Speaker 6: But maximum ten days, and I wouldn't have more than
Speaker 6: ten percent of your account hedging because if.
Speaker 4: You do twenty five percent and fifty, you are going
Speaker 4: to get destroyed. And that's the key. Right.
Speaker 5: Well, when I'm talking about investment, I'm not talking about
Speaker 5: your whole time even twenty five percent. We're talking small amounts,
Speaker 5: like I said, five hundred dollars, maybe one hundred dollars.
Speaker 5: If you're doing that just so it offset some of
Speaker 5: the losses that you have in the event of the pressure.
Speaker 2: That's amazing, man, I appreciate that.
Speaker 3: Yeah. Mark Cuban spoke about that on an.
Speaker 4: Episode two that got me thinking, like, wait, he was.
Speaker 7: Saying that, you know, if a lot of people he
Speaker 7: was like, right now, he's hedging a lot of it.
Speaker 3: This story was like, you haven't watched that Mark Cuban episode.
Speaker 3: You got to check it out.
Speaker 7: But you know, the story is legendary how he got
Speaker 7: five billion dollars in Yahoo stopped and Yahoo stock defined
Speaker 7: ninety three percent. But he actually made more money when
Speaker 7: it declined because he had put and he hedged his position.
Speaker 7: And he was saying when he went on CNBC. He
Speaker 7: was going on CNBC and everybody was saying, like, yo,
Speaker 7: do you feel stupid.
Speaker 3: He was like nope. He was like insurance.
Speaker 7: At end of the day, I can sleep at night
Speaker 7: knowing that, you know, if it falls, I'm protected. And
Speaker 7: when it did fall, not only was he protected, but
Speaker 7: he made a boatload of money. And after he told
Speaker 7: us that story. He was saying that right now he
Speaker 7: has hedges on all his stocks, and he was saying
Speaker 7: that he advises people to at the very least thing
Speaker 7: about hedging, because if it goes south, at least you know,
Speaker 7: you can recoup some funds. But if it doesn't go south,
Speaker 7: like choice as an insurance policy, so you don't put
Speaker 7: too much on the hedge, whether it's a port, whether
Speaker 7: it's an inverted each yeah, index, you don't put too
Speaker 7: much on it. It's like insurance, right, like if you
Speaker 7: pay two hundred a month for your car insurance, hopefully
Speaker 7: you definitely get in a car accident, hopefully, but if
Speaker 7: you do get in a car accident, then you got
Speaker 7: the insurance. So it's the same thing. It's the same
Speaker 7: thing with the with the investment. So something to think about.
Speaker 7: You know, everybody can do what they want. Our job
Speaker 7: is not to tell you what to do, just to
Speaker 7: give the information. But something that definitely marked you made
Speaker 7: a point of saying, and.
Speaker 6: And he bought the market like crazy after two thousand
Speaker 6: and three, but he made money on Yahoo shorter and
Speaker 6: then rose the market back.
Speaker 5: Up like h once he said that like all right,
Speaker 5: we gotta this is the reason why this is happening
Speaker 5: right now. We got to start looking at this a
Speaker 5: little different. Like I like what Shotty said, We're not
Speaker 5: telling anybody what to do. We're gonna tell you what
Speaker 5: we're actually doing, and if it can help somebody, great,
Speaker 5: If it can't, that's great too.
Speaker 4: We're just gonna be transparent about what we're doing.
Speaker 7: I had I hedge once again people saying what it's
Speaker 7: a hedge. A hedge is when you're hedging your position
Speaker 7: and whatever you have, you're investing opposite of it. So
Speaker 7: if I'm investing in the stock market right a hedge
Speaker 7: might be the inverted index, where I'm actually also investing
Speaker 7: that the stock market is going to go down. That's
Speaker 7: a hedge. Or you can put a put on a
Speaker 7: stock or a call. You can have If I have
Speaker 7: Apple stock and I think it's going to go down
Speaker 7: in the short term, I might put.
Speaker 3: A put on Apple.
Speaker 7: Or put is the opposite of a call, where you
Speaker 7: actually think that the stock is going to go down.
Speaker 7: That's what Mark Cuban did with his Yahoo stocks. So yeah,
Speaker 7: hedging is pretty much just uh security measure that you
Speaker 7: would take in case it goes opposite from the direction
Speaker 7: that you're invested in. That's pretty much ahead.
Speaker 2: That was like, that was good.
Speaker 3: You're not go a lot of time.
Speaker 7: People only think that you're gonna invest one way. When
Speaker 7: you think about the investment, you think about investments going up.
Speaker 7: But you could also invest in investments going down. You
Speaker 7: can make a lot of money. To Big Short Wanted
Speaker 7: a great, great movie, great book. And during two thousand
Speaker 7: and eight, during the financial crisis, a few guys made
Speaker 7: billions of dollars because they bet on mortgages falling apart
Speaker 7: and it happened. And when it happened, they got paid out.
Speaker 7: Crazy actually had to make products. Those products wasn't even
Speaker 7: actually out, They made those products just for them.
Speaker 3: It's a very good movie. I encourage everybody to watch it.
Speaker 6: Yeah, I'm gonna drop a link to where you guys
Speaker 6: can go and back test what allocation would be right
Speaker 6: for you.
Speaker 4: So you're just not hearing it.
Speaker 6: You can go to portfolio visualize it though, and go
Speaker 6: to back test portfolio and see if you had ten
Speaker 6: percent of your portfolio versus what you have now, how
Speaker 6: well it we'll do. And then also bonds like bonds
Speaker 6: is a good way to hedge as well. But play
Speaker 6: with that and see what allocation is right for you
Speaker 6: based on where you are financially, so you're not just
Speaker 6: running out and doing something incredibly risky.
Speaker 3: And gold to old used to be a hedge too,
Speaker 3: but now gold is kind of moving in the same perfection.
Speaker 7: Yeah, I don't know if that's a hedge anymore, but
Speaker 7: that's also so you can also have different allocation. Yeah,
Speaker 7: we can do a whole Euil University class about heges
Speaker 7: because it's actually a lot more now that I'm thinking
Speaker 7: about it. There's a lot of different ways how you
Speaker 7: can hedge.
Speaker 6: Also insurance, but people don't talk about assurance or.
Speaker 3: Act I was just about to say that's crazy.
Speaker 7: I was just about to literally, I was just about
Speaker 7: to say that, like a whole life insurance definitely is
Speaker 7: a hedge.
Speaker 3: I know everybody's gonna jump in the comment it's like
Speaker 3: my whole life. You're not here to tell you what
Speaker 3: to do.
Speaker 7: But it definitely can be used as a hedge because
Speaker 7: it's not depending on the stock market. It's guaranteed and
Speaker 7: it's through dividends, so when the stock market goes down,
Speaker 7: whole life pole the cash value can still go up.
Speaker 7: So yeah, fixed interest investments definitely could be a hedge,
Speaker 7: not only against inflation, so you can hedge against inflation
Speaker 7: as well. This is an ongoing conversation. We can have
Speaker 7: a whole about this, but yeah, there's more than one
Speaker 7: way to skin a cat. So Ian was saying, you know,
Speaker 7: as far as me, I'm still practicing as an advisor.
Speaker 7: People might not know that, but I still have my
Speaker 7: financial planning business. So he thought it would be a
Speaker 7: good idea if I kind of give like an example
Speaker 7: of what somebody would do if they came into, you know,
Speaker 7: a windfall of money, because you are talking about like
Speaker 7: a portfolio and to diversify.
Speaker 3: But it's like, what does that mean? Like what I mean?
Speaker 3: So it's like, all right, this is like a sample
Speaker 3: of what I would you recommend a client to do.
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Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.
Speaker 7: Then once again, everybody's situation is different. This is just
Speaker 7: the general idea framework. And somebody like came into my
Speaker 7: office and I had a conversation. But I just wanted
Speaker 7: to kind of give some give you kind of framework
Speaker 7: of like a financial plan, because we haven't really talked
Speaker 7: about like that too much. So like a financial plan.
Speaker 7: So we picked the magical number one million dollars. So
Speaker 7: and picked the thirty five year old, right, thirty five
Speaker 7: year old to one million dollars. So if you have
Speaker 7: one million dollars, say in a life insurance policy, that
Speaker 7: was you know, you got the reason why I say,
Speaker 7: the life insurance doesn't tax free, so you'll get one
Speaker 7: million dollars as no taxes that you have to pay.
Speaker 7: So out of that one million, the first thing I
Speaker 7: would suggest somebody to do his payoff debt the first day.
Speaker 7: So you know, the average American household has fifty seven
Speaker 7: hundred dollars a credit card debt, and depending on where
Speaker 7: you live in the country, that that's even low. Like
Speaker 7: what I mean like a lot of people have a
Speaker 7: lot higher than that. But I would take at least
Speaker 7: ten thousand dollars to pay off credit, especially credit card debt.
Speaker 7: That would be like the first thing that I would do.
Speaker 7: Then I would put money in savings online savings account.
Speaker 7: So you know, thirty five hundred dollars is the average
Speaker 7: American savings thirty five hundred. So we talk about stocks,
Speaker 7: and we talk about you know, long term investing, but
Speaker 7: me personally, I don't feel like anybody should invest before
Speaker 7: they have their credit card debt paid off. If it's reasonable,
Speaker 7: and savings, you gotta learn to save. Cash is trash,
Speaker 7: very true, but but you have to have some money
Speaker 7: in savings because what happens is that if you don't
Speaker 7: have money in savings, your investments become your saving. So
Speaker 7: when your tire blows, or you get sick, or your
Speaker 7: dog needs to go to the veterinarian, all of these things,
Speaker 7: you got to have an emergency fund.
Speaker 3: You got to.
Speaker 7: So I'm a big proponent and having at least six
Speaker 7: months at least six months of living expenses in the
Speaker 7: emergency funds. So I would put fifty thousand dollars into
Speaker 7: an online savings account. The reason why I say online
Speaker 7: savings account has a higher interest rates slightly higher than
Speaker 7: brick and mortar, and I like to separate. I don't
Speaker 7: want to have all my eggs in one basket. So
Speaker 7: like me, I bank with Chase, but I have my
Speaker 7: online savings with Capital One. So for a couple of
Speaker 7: different reasons, A, I just don't want to have all
Speaker 7: your eggs in one basket, and then be psychologically for me,
Speaker 7: it's a lot less tempting to transfer money from It's
Speaker 7: because you got to go to a whole different app
Speaker 7: and it takes like three days to take the money out.
Speaker 7: So it's like the whole point of the online savings
Speaker 7: is just out of sight, out of mind. You don't
Speaker 7: really want to even think about it. With Chase app,
Speaker 7: I go in there every day and I would see
Speaker 7: that on my Chase app if I had to on
Speaker 7: my own line savings that Chase, So that's just something
Speaker 7: to think about. I would put seventy five thousand into
Speaker 7: a five to twenty nine plan. The reason why I
Speaker 7: say seventy five thousand if I person had kids, because
Speaker 7: now you can frontload the five twenty nine five years,
Speaker 7: so that allows you to put a maximum amount. And
Speaker 7: whenever you get a lump sum like that, you know
Speaker 7: you always want to compound the entrest. So the more
Speaker 7: money you can put it up front, the better. So
Speaker 7: I would frontload it for five years. Now front loader,
Speaker 7: you can't put more money in for five years, but
Speaker 7: at least you have that seventy five thousand right away
Speaker 7: that's working. And you know, depending on the state that
Speaker 7: you live, and you get a state tax deduction for
Speaker 7: five to twenty nine plans as well, So we talked
Speaker 7: about that. I would put seventy five thousand into an
Speaker 7: ut month. The reason why the UTMA not the five
Speaker 7: to twenty nine is that you once to gain, you
Speaker 7: want to diversify. Five twenty nine is great for college
Speaker 7: and education, but what if the kid doesn't want to
Speaker 7: go to college, or what if you know what I'm saying,
Speaker 7: like the ain't thinking happened. So the utmaches provides more flexibility,
Speaker 7: and you know, I would invest in something that we've
Speaker 7: talked about before, like a.
Speaker 3: You know ETF that is broad range.
Speaker 7: Get broad range exposure to the stock market to a
Speaker 7: lot of the top ten companies, so you don't have
Speaker 7: to like risk it with penny stocks or something like that.
Speaker 7: It's your kids future. You don't want to take too
Speaker 7: much risk with that. Life insurance is something that you
Speaker 7: definitely need to have. It's an important part of the
Speaker 7: financial planning process. So no matter how you go about it,
Speaker 7: whether you get term insurance, if you're thirty five, you
Speaker 7: can probably get a million dollar term insurance p six
Speaker 7: hundred dollars a year. Healthy, if you're in good shape,
Speaker 7: you get like six hundred dollars a year. Now, granted,
Speaker 7: you're not gonna make any money off that because it's
Speaker 7: term and it only lasts like, let's say twenty years,
Speaker 7: But twenty years is still a long time, you know
Speaker 7: what I mean. So it's like, I personally think that
Speaker 7: a million dollars is something that at the very least
Speaker 7: most people in today's society should try to aim for
Speaker 7: when it comes to life insurance size, because if you're
Speaker 7: thinking about it, you're taking care of your family or
Speaker 7: at least one child. A million dollars not really that
Speaker 7: much money in the grand scheme of things, because it's
Speaker 7: like that has to last their whole life. That's replacing
Speaker 7: your your earning potential. So if you make one hundred
Speaker 7: thousand dollars a year, a million dollars cover is ten
Speaker 7: years of your of your salary. Yeah, you know, you
Speaker 7: look at it from that standpoint. So the life insurance
Speaker 7: is something I definitely would encourage. Like I said, you
Speaker 7: can do term, you can do whole life. That's a
Speaker 7: whole conversation within itself. I would probably put one hundred
Speaker 7: thousand dollars into idea. Idea A lot of people might
Speaker 7: not be familiar with that is that is called the
Speaker 7: deferred income of So either the ideas are great plays,
Speaker 7: especially for retirement or long term. Like this is why
Speaker 7: when you see a lot of athletes can get contract,
Speaker 7: some of them they get DEAs. One of the probably
Speaker 7: the most famous DEA in our recent time is Alan Iverson.
Speaker 7: So a lot of people are very familiar with that
Speaker 7: Rebot contract where I think it pays him like one
Speaker 7: point five million, like starting like in two years, he
Speaker 7: gets like one point five million for the rest of
Speaker 7: his life. What they did with that was that it
Speaker 7: was part of his contract that a portion of the
Speaker 7: money that was paid to him went into a.
Speaker 3: DA which is a referred income annuity.
Speaker 7: So it sits in an annuity contract and it could
Speaker 7: be set up a fifteen thirty high a loan you want,
Speaker 7: but like let's says you put ten million dollars into
Speaker 7: a deal and then in fifteen years now that ten
Speaker 7: million will pay a lifetime income of one million dollars. Right,
Speaker 7: So it's it's similar to like how like the lottery.
Speaker 7: You can do the same thing with lottery. So that's
Speaker 7: great because now you defer, you defer. So it's like
Speaker 7: if you blow everything and at least you know you
Speaker 7: got that coming to you every single year. So especially
Speaker 7: for some people that have some amounts of money, the
Speaker 7: DA is definitely a great idea.
Speaker 3: After that, I would.
Speaker 7: Invest four hundred thousand dollars into the market, a split
Speaker 7: between ETF and tech stocks, even some mutual funds, so
Speaker 7: like FK, D and X We talked about that, XLK, XI, SMH,
Speaker 7: you know regulars tech stocks, the obvious Apple, Microsoft, Tesla, Amazon,
Speaker 7: things in that nature. Because it's like you don't really
Speaker 7: necessarily have to try to hit home runs when you
Speaker 7: guarantee doubles, Like you know what I'm saying. You guarantee
Speaker 7: the double, you're guaranteed to have twenty points every every game.
Speaker 7: You don't need to try to score fifty. So in
Speaker 7: my brain, those all make sense. They all have strong
Speaker 7: track records, they all want to be here for a
Speaker 7: long time. The next one hundred and fifty thousand, I
Speaker 7: would take more risk with it. If that's what you
Speaker 7: want to do. You can allocate that to stock options,
Speaker 7: you can allocate that to cryptocurrency, to future trading, to
Speaker 7: a little bit more like risky ETFs not risky, but
Speaker 7: like you know, like a TAN or IV be if
Speaker 7: you want to look at like biotech or renewable energy,
Speaker 7: where I don't want to say it that's risky because
Speaker 7: I believe in biotech and renewable energy, but it's a
Speaker 7: lot that goes into play with that, right, It's a
Speaker 7: lot of variable to the political standpoint, whether it's you know,
Speaker 7: the drugs work, but biotech industry is still it's still
Speaker 7: more volatile. In the next ten years, then you know,
Speaker 7: a QQQ would be or a Franklin Diamond tech point.
Speaker 7: And then the next one hundred and forty thousand dollars
Speaker 7: I would have as alternative cash money. So you might
Speaker 7: want to you know, start a business, or you might
Speaker 7: want to invest in real estate, or you know, you
Speaker 7: might want to do a variety of different things outside
Speaker 7: of just regular investment. That standpoint, I would allocate that
Speaker 7: so that's my breakdown, that's my million dollar breakdown.
Speaker 6: That's what percentage of the deal does that give per year,
Speaker 6: Like what's the average return?
Speaker 7: Yeah, so it really depends because there's a few different
Speaker 7: factors on like how long you leave it in. It
Speaker 7: really depends on really how long you leave it in
Speaker 7: and the interest rate that that the insurance company pays.
Speaker 7: So we really have to run what's called like an
Speaker 7: illustration to actually give like a real spot on answer
Speaker 7: to that question. But you know, usually it usually will
Speaker 7: grow in a fixed capacity in around like three to
Speaker 7: four to five percent annually rate of return on the
Speaker 7: type of on that type of product. So you can
Speaker 7: kind of compound that over the course of ten years,
Speaker 7: thirty years, something like that, and then that's that's what
Speaker 7: you'll get.
Speaker 6: And as you guys come into these lumpsums, you want safety,
Speaker 6: like you think that you will just throw it off
Speaker 6: to the wind and be like, hey, let me just
Speaker 6: put it all in one company. But if you lose
Speaker 6: it and people don't think that financial room can hurt you.
Speaker 6: But like every recession, people die, commit suicide, people make
Speaker 6: bad investments, get hurt, like lose your career. So the
Speaker 6: more money you accumulate the safer that you want to be.
Speaker 2: I know some of you are in a growth.
Speaker 6: Phase and you're looking to grow, but even with that,
Speaker 6: you still need to go look at what the drawdown
Speaker 6: of those companies are. Because if a company is drawn
Speaker 6: down twenty eight percent thirty percent every two years, it's
Speaker 6: not a place that you want to Because what if
Speaker 6: you hit it hard twenty twenty, twenty twenty one, and
Speaker 6: next year you put your money into the risky asset set,
Speaker 6: and now you give up two years of your life
Speaker 6: and all this hard work and study. The more money
Speaker 6: you actimulate, please like go to safer vehicles that are
Speaker 6: available to you.
Speaker 7: And you know what an another thing too, is that
Speaker 7: so you can really use that type of formula for
Speaker 7: any amount of money. Right, if you have a thousand,
Speaker 7: if you have fifty thousand, right, Like, so what you
Speaker 7: do is you just you just lower the amount of
Speaker 7: money relative and how much money you have. So if
Speaker 7: you have a one hundred thousand, if you have fifty
Speaker 7: thousand dollars, right, obviously you're not gonna be able to
Speaker 7: invest four hundred thousand dollars if you have two thousand dollars.
Speaker 3: But would you would do the same thing.
Speaker 7: So if you had one hundred thousand, I wouldn't really
Speaker 7: recommend more than like fifteen percent of that into the
Speaker 7: more riskier type of investments. So that would mean fifteen
Speaker 7: thousand dollars will go into your crypto futures options bucket.
Speaker 7: You might put you know, ten thousand or thirty thousand
Speaker 7: dollars into your kids college fund, you know. So it's like,
Speaker 7: if you got ten thousand dollars, you might invest fifteen
Speaker 7: hundred dollars into bitcoin, and then you might invest three
Speaker 7: thousand dollars into your kids college fund. So the numbers
Speaker 7: really aren't the most important thing. Just wanting to use
Speaker 7: a million dollars because that's a nice round number, and
Speaker 7: that's something that a lot of people are fired to
Speaker 7: become millionaires. So it's like, all right, you always head
Speaker 7: these stories about this athletes entertainers and everybody you know
Speaker 7: criticizes them. But it's like, all right, when you get there,
Speaker 7: cause you know you can get there too. It's not
Speaker 7: like it's impossible to get a million dollars, So yeah,
Speaker 7: you gotta be paid. Like the worst thing that could
Speaker 7: happen is that you get there and you're not.
Speaker 3: Prepared, and then you have no plan. Oh my god, yeah, yeah,
Speaker 3: what happens from here? You don't have to plan. You're
Speaker 3: I mean, you're either gonna either gonna two things a
Speaker 3: gonna happen.
Speaker 7: You're gonna end up bowing it, or you're gonna be
Speaker 7: so scared that you're just gonna have it in your
Speaker 7: savings or frightened, scared out your mind. The worst thing
Speaker 7: is to be scared with money. And it's like, you
Speaker 7: have money. You waited your whole life to get money,
Speaker 7: You've got it, and now you're scared to death because
Speaker 7: you don't want to lose it.
Speaker 6: Hold on, yep, there's another game on a side of
Speaker 6: the fence once you acquire it. I'd rather you guys
Speaker 6: learned this now than when it's too late and it's
Speaker 6: it's almost okay now if you have it in cash.
Speaker 6: But what about what if they bump interest rates to
Speaker 6: two point eight or three percent? Like inflation is going
Speaker 6: to eat you alive?
Speaker 5: My graduates from my school being forced back drop bag drop,
Speaker 5: Mike drop backdrop drop.
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