WEBVTT - Study Hall: Make Money When Stocks Go Down + Million Dollar Investment Plan 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:00.000 Sponsored by the United States Department of Homeland Security. 0:01:00.080 --> 0:01:00.720 Don't do something. 0:01:01.200 --> 0:01:03.520 Yeah, I don't want to take them too much. I know, 0:01:04.000 --> 0:01:04.600 no take it. 0:01:05.360 --> 0:01:06.360 Shoty gonna get to work too. 0:01:06.640 --> 0:01:09.679 You about to go to work, and so sixteen you 0:01:09.760 --> 0:01:11.479 kind of just threw me that, like the whole alley 0:01:11.520 --> 0:01:14.400 you because when you said defense, play defense, play defense, 0:01:15.240 --> 0:01:17.160 we only talk about things that we're doing, right, and 0:01:17.240 --> 0:01:19.840 so over here Algi like we're like, we got to 0:01:19.840 --> 0:01:20.759 play some defense in some. 0:01:20.680 --> 0:01:22.360 Of these positions that we have. And so there was 0:01:22.440 --> 0:01:25.399 this great guy who talked about in. 0:01:25.400 --> 0:01:28.240 Verse indexes on this episode I think like seventy or 0:01:28.240 --> 0:01:32.280 something like that, and so I don't think people really 0:01:32.360 --> 0:01:34.400 understand what that looks like. So I'm gonna share my 0:01:34.440 --> 0:01:37.800 screen and then we'll go through a little chartist play. 0:01:37.840 --> 0:01:47.360 It'll be quick, I try. All right, we're good, thumbs out, 0:01:47.400 --> 0:01:50.920 y'all can see the screen? Yes, perfect, perfect, perfect perfect. 0:01:50.960 --> 0:01:51.680 Let me go over here. 0:01:52.280 --> 0:01:54.200 Somebody was reading all my tabs. They were like, yo, 0:01:54.360 --> 0:01:54.880 what you're doing. 0:01:54.760 --> 0:01:55.400 On that site? 0:01:56.440 --> 0:01:58.440 But yeah, so obviously I know i'd love to use 0:01:58.520 --> 0:02:05.160 y'allhoo finance it can me oh oh, let me let 0:02:05.200 --> 0:02:08.320 me check the audio real quick. Yeah we're good. You 0:02:08.360 --> 0:02:11.600 can hear me good, I can hear you all right, Yeah, 0:02:11.639 --> 0:02:12.760 we don't have to do this, and. 0:02:12.720 --> 0:02:14.760 So obviously we like I told you all from day one, 0:02:14.840 --> 0:02:17.880 I love using the y'all who finance charge just because 0:02:17.880 --> 0:02:20.840 it's easier visual for me to see, uh, and to 0:02:20.919 --> 0:02:24.120 break down. And so what it inverse index does, It's 0:02:24.240 --> 0:02:25.880 kind of like hedging. So you just laid it out 0:02:25.880 --> 0:02:28.119 perfectly right. You said, there's no point of having a well, 0:02:29.040 --> 0:02:31.080 having a two hundred percent gain is great, but if 0:02:31.120 --> 0:02:33.359 you lose one hundred and seventy five percent of it, 0:02:33.440 --> 0:02:35.880 what's the point. And so when we heard Mark tell 0:02:35.960 --> 0:02:37.720 us that story, we're like, yo, maybe we should start 0:02:37.720 --> 0:02:40.480 figuring out some place to hedge some of these positions 0:02:40.520 --> 0:02:43.799 we got. And so uh, I had a conversation shout 0:02:43.800 --> 0:02:47.560 out to Tally uy Yo alum u Uio University Alum. 0:02:47.600 --> 0:02:48.799 She was like, Yo, I want you to look into 0:02:48.880 --> 0:02:53.920 these positions, and so ESDW let's see, it's one of 0:02:53.919 --> 0:02:59.000 these inverse indexes. And so I'm gonna show you exactly 0:02:59.040 --> 0:03:03.080 what that means. And so as obviously right here it 0:03:03.280 --> 0:03:06.760 tracks the Dow thirty and so if we look at it, 0:03:06.919 --> 0:03:10.160 as the Dow goes up, this position goes down right, 0:03:11.120 --> 0:03:18.639 and as hold on, as the Dow goes down, this 0:03:18.800 --> 0:03:22.400 position goes rises right. So we can see here in March, obviously, 0:03:22.400 --> 0:03:24.960 when Corona happens, look at the price target here for 0:03:25.200 --> 0:03:29.040 sdal right hit a high eighty four. And as we've 0:03:29.080 --> 0:03:31.519 been managing with Corona and dealing with the pandemic and 0:03:31.560 --> 0:03:34.120 the economy has grown, we can see that this is 0:03:34.120 --> 0:03:36.840 trailed down. Some people might be looking at us, like, 0:03:36.920 --> 0:03:40.000 why am I going to invest in anything that treads down? Well, 0:03:40.000 --> 0:03:43.080 here's why, right, it's the same reason Ian just said. 0:03:43.200 --> 0:03:45.760 If you're up to two hundred percent and there's a correction, 0:03:46.480 --> 0:03:48.600 you're going to lose some of that percentage. And so 0:03:48.720 --> 0:03:52.480 let's go back to the last couple of corrections that 0:03:52.520 --> 0:03:55.520 we had, right, We had one in September second and 0:03:55.560 --> 0:03:57.320 I know the date because I took the picture of 0:03:57.360 --> 0:04:02.839 my account and I was like, oh my gosh. 0:04:01.320 --> 0:04:03.720 This is different. How am I going to manage? 0:04:04.680 --> 0:04:06.400 Let me see? Can I see the over there? Let's 0:04:06.400 --> 0:04:07.160 go up a little. 0:04:06.960 --> 0:04:11.000 Bit right, here we go, so you can see market's 0:04:11.280 --> 0:04:13.800 doing great. I think we'rehitting all time hides apples at 0:04:13.840 --> 0:04:17.039 all time high. There's a split, right, it hits a 0:04:17.080 --> 0:04:21.880 low here at sixteen, but then there's a correction and 0:04:21.920 --> 0:04:23.320 you can see the tart. 0:04:23.200 --> 0:04:27.160 Rise, right. And so as this is rising, people are 0:04:27.160 --> 0:04:27.760 making money. 0:04:28.080 --> 0:04:30.479 Right, So some people, when in the options game, this 0:04:30.480 --> 0:04:33.400 would be like a put. Right as the stock the 0:04:33.520 --> 0:04:36.280 option call goes down, the put price goes up. 0:04:36.360 --> 0:04:37.200 So it's the same thing. 0:04:37.279 --> 0:04:39.160 Can actually buy shares in this and so you can 0:04:39.200 --> 0:04:42.400 see it here, right, we got up to sixteen right 0:04:42.560 --> 0:04:43.839 at the end of October. 0:04:44.080 --> 0:04:46.400 We saw it again. Why I took a picture because 0:04:46.400 --> 0:04:48.920 I was like, no, not again, not again. 0:04:49.200 --> 0:04:51.039 And so at the end of October we can see 0:04:51.040 --> 0:04:53.320 it down here, it's hitting it's low and then boom, 0:04:53.320 --> 0:04:55.080 there's another correction at the end of October. 0:04:56.040 --> 0:04:59.640 And so obviously s Dall's price goes up to almost nine. 0:05:00.160 --> 0:05:02.800 It opened that nineteen and it got up to twenty 0:05:02.800 --> 0:05:06.720 one to forty, right, and so ever since you can 0:05:06.720 --> 0:05:07.320 see as. 0:05:07.160 --> 0:05:09.760 The economy grows and the dow grows, this has been 0:05:09.760 --> 0:05:13.000 going down. And everybody's keeps saying, when, wait, there's gonna 0:05:13.000 --> 0:05:13.520 be a correction. 0:05:13.560 --> 0:05:16.039 There's gonna be a correction. When is everything gonna fall? 0:05:16.080 --> 0:05:17.560 That just can't be green all the time. 0:05:17.600 --> 0:05:20.159 And so if that is your thought, then this is 0:05:20.200 --> 0:05:22.200 a position where you can take insurance. 0:05:22.880 --> 0:05:23.040 Right. 0:05:23.080 --> 0:05:24.120 Think of it as insurance. 0:05:24.200 --> 0:05:26.720 Right, If I pay five hundred dollars to get into 0:05:26.760 --> 0:05:30.800 this position, and hey, the economy keeps growing, great, you 0:05:30.880 --> 0:05:33.240 have positions that are gonna hedge this right, that means 0:05:33.279 --> 0:05:37.400 you've gained more. But if there is a correction, right, 0:05:37.440 --> 0:05:41.000 you're gonna make money on the way down. And so 0:05:41.040 --> 0:05:42.760 I want people to keep that in mind. And there's 0:05:42.760 --> 0:05:43.760 plenty of them, right. 0:05:43.960 --> 0:05:45.920 This is just one s That was one I wrote down. 0:05:45.920 --> 0:05:46.480 A few others. 0:05:46.560 --> 0:05:50.440 SDS is one dog Dog, which is an ETF. You 0:05:50.480 --> 0:05:53.440 can buy positions in this and so this is like 0:05:53.520 --> 0:05:58.360 the insurance play. If you're getting nervous, if you're getting apprehensive, 0:05:58.440 --> 0:06:00.839 like wait, this can't be green with time. If you 0:06:00.880 --> 0:06:04.800 feel that way, great, make some insurance plays, hedge your 0:06:04.839 --> 0:06:07.760 bets and play a safe. Play a safe. 0:06:08.600 --> 0:06:10.480 That was it. That's all I want. This is what 0:06:10.480 --> 0:06:11.279 we're actually doing. 0:06:11.400 --> 0:06:13.880 Every time we're doing something and we're like, yo, let's 0:06:13.880 --> 0:06:16.080 show them what we're doing. This is what we're doing, 0:06:16.120 --> 0:06:17.960 and this is how we're trying to say, look, yeah, 0:06:18.040 --> 0:06:20.280 we can make the one hundred percent here, right, But 0:06:20.320 --> 0:06:22.479 if I if I just advocate a little bit of 0:06:22.560 --> 0:06:26.359 funds to hedge it maybe five hundred one thousand dollars 0:06:26.360 --> 0:06:27.320 to some of my plays. 0:06:27.960 --> 0:06:30.080 If I lose that one thousand, that's great. 0:06:30.120 --> 0:06:33.320 That means that my other investments have gone up, right, 0:06:33.600 --> 0:06:35.360 if it goes down, like I said, then we can 0:06:35.440 --> 0:06:38.000 make some money on the way down with our thousand 0:06:38.040 --> 0:06:38.719 dollars investment. 0:06:39.200 --> 0:06:40.880 So the only thing I want to time and say 0:06:40.880 --> 0:06:44.159 for everyone listening, and also for legal reasons, you shouldn't 0:06:44.200 --> 0:06:47.039 have more than ten percent of your account hedging. And 0:06:47.080 --> 0:06:49.320 then also you should not be in a position longer 0:06:49.360 --> 0:06:52.040 than ten days. If you do an equally wayed you're 0:06:52.080 --> 0:06:54.440 basically bettering against the market. And if you look even 0:06:54.480 --> 0:06:56.719 at that was a your one hundred or two hundred, 0:06:56.760 --> 0:07:00.720 that's red. Yeah, yeah, it's not broken above twenty one 0:07:00.839 --> 0:07:02.600 thirty nine in a long time. 0:07:02.680 --> 0:07:05.560 Can you hit max chart for me real quick, sir, please? 0:07:09.520 --> 0:07:12.120 I mean you can see this has been sloping down forever, right, 0:07:12.120 --> 0:07:15.760 but the Twelvey four to twenty max line for that 0:07:15.800 --> 0:07:18.880 two hundred has not been touched, so it's an inverse product. 0:07:19.600 --> 0:07:22.040 But maximum ten days, and I wouldn't have more than 0:07:22.240 --> 0:07:24.560 ten percent of your account hedging because if. 0:07:24.440 --> 0:07:26.560 You do twenty five percent and fifty, you are going 0:07:26.600 --> 0:07:28.360 to get destroyed. And that's the key. Right. 0:07:28.440 --> 0:07:30.800 Well, when I'm talking about investment, I'm not talking about 0:07:30.800 --> 0:07:33.640 your whole time even twenty five percent. We're talking small amounts, 0:07:33.640 --> 0:07:35.480 like I said, five hundred dollars, maybe one hundred dollars. 0:07:35.480 --> 0:07:37.640 If you're doing that just so it offset some of 0:07:37.680 --> 0:07:39.560 the losses that you have in the event of the pressure. 0:07:40.640 --> 0:07:42.080 That's amazing, man, I appreciate that. 0:07:43.480 --> 0:07:46.200 Yeah. Mark Cuban spoke about that on an. 0:07:46.160 --> 0:07:49.000 Episode two that got me thinking, like, wait, he was. 0:07:48.960 --> 0:07:51.800 Saying that, you know, if a lot of people he 0:07:51.920 --> 0:07:54.160 was like, right now, he's hedging a lot of it. 0:07:54.480 --> 0:07:56.760 This story was like, you haven't watched that Mark Cuban episode. 0:07:56.760 --> 0:07:57.560 You got to check it out. 0:07:57.920 --> 0:08:00.960 But you know, the story is legendary how he got 0:08:01.560 --> 0:08:06.360 five billion dollars in Yahoo stopped and Yahoo stock defined 0:08:06.480 --> 0:08:09.360 ninety three percent. But he actually made more money when 0:08:09.440 --> 0:08:14.600 it declined because he had put and he hedged his position. 0:08:15.080 --> 0:08:16.960 And he was saying when he went on CNBC. He 0:08:17.080 --> 0:08:19.320 was going on CNBC and everybody was saying, like, yo, 0:08:19.480 --> 0:08:20.280 do you feel stupid. 0:08:20.360 --> 0:08:22.000 He was like nope. He was like insurance. 0:08:22.000 --> 0:08:23.800 At end of the day, I can sleep at night 0:08:24.240 --> 0:08:26.880 knowing that, you know, if it falls, I'm protected. And 0:08:26.960 --> 0:08:29.160 when it did fall, not only was he protected, but 0:08:29.240 --> 0:08:31.800 he made a boatload of money. And after he told 0:08:31.880 --> 0:08:34.319 us that story. He was saying that right now he 0:08:34.559 --> 0:08:36.760 has hedges on all his stocks, and he was saying 0:08:36.840 --> 0:08:41.120 that he advises people to at the very least thing 0:08:41.200 --> 0:08:46.640 about hedging, because if it goes south, at least you know, 0:08:47.000 --> 0:08:49.480 you can recoup some funds. But if it doesn't go south, 0:08:49.960 --> 0:08:52.520 like choice as an insurance policy, so you don't put 0:08:52.559 --> 0:08:55.720 too much on the hedge, whether it's a port, whether 0:08:55.720 --> 0:09:00.520 it's an inverted each yeah, index, you don't put too 0:09:00.640 --> 0:09:03.160 much on it. It's like insurance, right, like if you 0:09:03.280 --> 0:09:06.480 pay two hundred a month for your car insurance, hopefully 0:09:06.520 --> 0:09:09.120 you definitely get in a car accident, hopefully, but if 0:09:09.120 --> 0:09:11.199 you do get in a car accident, then you got 0:09:11.240 --> 0:09:14.440 the insurance. So it's the same thing. It's the same 0:09:14.480 --> 0:09:17.439 thing with the with the investment. So something to think about. 0:09:17.640 --> 0:09:20.679 You know, everybody can do what they want. Our job 0:09:20.760 --> 0:09:21.920 is not to tell you what to do, just to 0:09:21.920 --> 0:09:25.280 give the information. But something that definitely marked you made 0:09:25.280 --> 0:09:27.400 a point of saying, and. 0:09:28.360 --> 0:09:30.480 And he bought the market like crazy after two thousand 0:09:30.480 --> 0:09:33.760 and three, but he made money on Yahoo shorter and 0:09:33.880 --> 0:09:35.120 then rose the market back. 0:09:35.040 --> 0:09:39.240 Up like h once he said that like all right, 0:09:39.280 --> 0:09:41.760 we gotta this is the reason why this is happening 0:09:41.800 --> 0:09:43.319 right now. We got to start looking at this a 0:09:43.320 --> 0:09:45.839 little different. Like I like what Shotty said, We're not 0:09:45.880 --> 0:09:48.520 telling anybody what to do. We're gonna tell you what 0:09:48.640 --> 0:09:51.600 we're actually doing, and if it can help somebody, great, 0:09:52.160 --> 0:09:53.360 If it can't, that's great too. 0:09:53.440 --> 0:09:57.160 We're just gonna be transparent about what we're doing. 0:09:57.600 --> 0:10:00.160 I had I hedge once again people saying what it's 0:10:00.200 --> 0:10:03.240 a hedge. A hedge is when you're hedging your position 0:10:04.200 --> 0:10:07.559 and whatever you have, you're investing opposite of it. So 0:10:07.840 --> 0:10:11.880 if I'm investing in the stock market right a hedge 0:10:12.440 --> 0:10:16.360 might be the inverted index, where I'm actually also investing 0:10:16.400 --> 0:10:18.520 that the stock market is going to go down. That's 0:10:18.559 --> 0:10:21.400 a hedge. Or you can put a put on a 0:10:21.480 --> 0:10:23.480 stock or a call. You can have If I have 0:10:23.640 --> 0:10:26.280 Apple stock and I think it's going to go down 0:10:26.320 --> 0:10:27.640 in the short term, I might put. 0:10:27.559 --> 0:10:28.760 A put on Apple. 0:10:28.840 --> 0:10:31.520 Or put is the opposite of a call, where you 0:10:31.600 --> 0:10:33.480 actually think that the stock is going to go down. 0:10:33.640 --> 0:10:37.200 That's what Mark Cuban did with his Yahoo stocks. So yeah, 0:10:37.240 --> 0:10:41.319 hedging is pretty much just uh security measure that you 0:10:41.360 --> 0:10:46.000 would take in case it goes opposite from the direction 0:10:46.200 --> 0:10:49.240 that you're invested in. That's pretty much ahead. 0:10:50.280 --> 0:10:52.839 That was like, that was good. 0:10:54.280 --> 0:10:55.000 You're not go a lot of time. 0:10:55.040 --> 0:10:56.959 People only think that you're gonna invest one way. When 0:10:56.960 --> 0:10:59.120 you think about the investment, you think about investments going up. 0:10:59.640 --> 0:11:01.760 But you could also invest in investments going down. You 0:11:01.760 --> 0:11:03.640 can make a lot of money. To Big Short Wanted 0:11:03.800 --> 0:11:07.680 a great, great movie, great book. And during two thousand 0:11:07.679 --> 0:11:11.040 and eight, during the financial crisis, a few guys made 0:11:11.120 --> 0:11:16.199 billions of dollars because they bet on mortgages falling apart 0:11:16.960 --> 0:11:20.320 and it happened. And when it happened, they got paid out. 0:11:20.360 --> 0:11:23.800 Crazy actually had to make products. Those products wasn't even 0:11:23.840 --> 0:11:25.959 actually out, They made those products just for them. 0:11:26.200 --> 0:11:29.120 It's a very good movie. I encourage everybody to watch it. 0:11:29.520 --> 0:11:31.120 Yeah, I'm gonna drop a link to where you guys 0:11:31.160 --> 0:11:33.920 can go and back test what allocation would be right 0:11:34.000 --> 0:11:34.160 for you. 0:11:34.320 --> 0:11:35.319 So you're just not hearing it. 0:11:36.480 --> 0:11:38.760 You can go to portfolio visualize it though, and go 0:11:38.840 --> 0:11:42.040 to back test portfolio and see if you had ten 0:11:42.080 --> 0:11:45.000 percent of your portfolio versus what you have now, how 0:11:45.080 --> 0:11:46.760 well it we'll do. And then also bonds like bonds 0:11:46.880 --> 0:11:49.120 is a good way to hedge as well. But play 0:11:49.200 --> 0:11:50.959 with that and see what allocation is right for you 0:11:51.080 --> 0:11:53.839 based on where you are financially, so you're not just 0:11:53.920 --> 0:11:56.800 running out and doing something incredibly risky. 0:11:57.040 --> 0:11:59.200 And gold to old used to be a hedge too, 0:11:59.240 --> 0:12:01.240 but now gold is kind of moving in the same perfection. 0:12:01.880 --> 0:12:05.079 Yeah, I don't know if that's a hedge anymore, but 0:12:05.720 --> 0:12:08.160 that's also so you can also have different allocation. Yeah, 0:12:08.200 --> 0:12:10.440 we can do a whole Euil University class about heges 0:12:10.720 --> 0:12:12.400 because it's actually a lot more now that I'm thinking 0:12:12.400 --> 0:12:13.679 about it. There's a lot of different ways how you 0:12:13.760 --> 0:12:14.160 can hedge. 0:12:14.840 --> 0:12:18.000 Also insurance, but people don't talk about assurance or. 0:12:18.040 --> 0:12:21.280 Act I was just about to say that's crazy. 0:12:21.280 --> 0:12:22.840 I was just about to literally, I was just about 0:12:22.880 --> 0:12:25.000 to say that, like a whole life insurance definitely is 0:12:25.000 --> 0:12:25.400 a hedge. 0:12:26.160 --> 0:12:28.040 I know everybody's gonna jump in the comment it's like 0:12:28.280 --> 0:12:30.839 my whole life. You're not here to tell you what 0:12:30.920 --> 0:12:31.079 to do. 0:12:31.240 --> 0:12:33.360 But it definitely can be used as a hedge because 0:12:33.880 --> 0:12:36.760 it's not depending on the stock market. It's guaranteed and 0:12:36.840 --> 0:12:39.800 it's through dividends, so when the stock market goes down, 0:12:39.880 --> 0:12:41.960 whole life pole the cash value can still go up. 0:12:42.480 --> 0:12:45.880 So yeah, fixed interest investments definitely could be a hedge, 0:12:46.360 --> 0:12:50.400 not only against inflation, so you can hedge against inflation 0:12:50.440 --> 0:12:52.360 as well. This is an ongoing conversation. We can have 0:12:52.400 --> 0:12:55.560 a whole about this, but yeah, there's more than one 0:12:55.600 --> 0:12:58.280 way to skin a cat. So Ian was saying, you know, 0:12:58.400 --> 0:13:01.480 as far as me, I'm still practicing as an advisor. 0:13:01.760 --> 0:13:03.800 People might not know that, but I still have my 0:13:03.880 --> 0:13:06.559 financial planning business. So he thought it would be a 0:13:06.600 --> 0:13:10.280 good idea if I kind of give like an example 0:13:11.040 --> 0:13:13.839 of what somebody would do if they came into, you know, 0:13:14.000 --> 0:13:15.719 a windfall of money, because you are talking about like 0:13:15.960 --> 0:13:18.080 a portfolio and to diversify. 0:13:18.280 --> 0:13:20.520 But it's like, what does that mean? Like what I mean? 0:13:20.600 --> 0:13:22.800 So it's like, all right, this is like a sample 0:13:23.360 --> 0:13:25.760 of what I would you recommend a client to do. 0:13:26.960 --> 0:13:27.680 Earners, What's up? 0:13:27.800 --> 0:13:30.760 You ever walk into a small business and everything just works, 0:13:31.200 --> 0:13:34.480 Like the checkout is fast, the seats are digital, tipping 0:13:34.760 --> 0:13:37.160 is a breeze, and you're out the door before the 0:13:37.240 --> 0:13:41.600 line even builds. Odds are they're using Square? 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Don't wait, don't hesitate, 0:14:28.240 --> 0:14:30.560 Let Square handle the back end so you can keep 0:14:30.640 --> 0:14:36.680 pushing your vision forward. This episode is brought to you 0:14:36.760 --> 0:14:39.000 by P and C Bank. A lot of people think 0:14:39.080 --> 0:14:42.920 podcasts about work are boring, and sure, they definitely can be, 0:14:43.480 --> 0:14:46.720 but understanding a professional's routine shows us how they achieve 0:14:46.760 --> 0:14:50.960 their success little by little, day after day. It's like 0:14:51.080 --> 0:14:53.840 banking with P and C Bank. It might seem boring 0:14:53.880 --> 0:14:56.640 to save, plan and make calculated decisions with your bank, 0:14:57.200 --> 0:14:59.600 but keeping your money boring is what helps you live 0:14:59.760 --> 0:15:02.720 or more more happily fulfilled. Life. P and C Bank 0:15:03.240 --> 0:15:08.040 Brilliantly Boring since eighteen sixty five. Brilliantly Boring since eighteen 0:15:08.080 --> 0:15:10.880 sixty five is a service mark of the PNC Financial 0:15:10.920 --> 0:15:15.560 Service Group, Inc. P and C Bank National Association Member FDIC. 0:15:17.360 --> 0:15:20.960 An illegal alien from Guatemala charged with raping a child 0:15:21.040 --> 0:15:24.840 in Massachusetts. An MS thirteen gang member from Al Salvador 0:15:25.080 --> 0:15:29.200 accused of murdering a Texas man of Venezuelan charged with 0:15:29.320 --> 0:15:33.160 filming and selling child pornography in Michigan. These are just 0:15:33.280 --> 0:15:37.000 some of the heinous migrant criminals caught because of President 0:15:37.080 --> 0:15:40.600 Donald J. Trump's leadership. I'm Christy nom the United States 0:15:40.680 --> 0:15:45.440 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:15:45.520 --> 0:15:49.000 crossings are at the lowest levels ever recorded, and over 0:15:49.120 --> 0:15:52.280 one hundred thousand illegal aliens have been arrested. If you 0:15:52.400 --> 0:15:56.240 are here illegally, your next you will be fined nearly 0:15:56.360 --> 0:16:00.360 one thousand dollars a day, imprisoned, and deported. You will 0:16:00.440 --> 0:16:04.040 never return. But if you register using our CBP home 0:16:04.080 --> 0:16:07.440 app and leave now, you could be allowed to return legally. 0:16:07.840 --> 0:16:12.520 Do what's right. Leave now. Under President Trump, America's laws, 0:16:12.760 --> 0:16:15.160 border and families will be protected. 0:16:15.280 --> 0:16:17.360 Sponsored by the United States Department of Homeland Security. 0:16:17.680 --> 0:16:21.000 Then once again, everybody's situation is different. This is just 0:16:21.120 --> 0:16:25.440 the general idea framework. And somebody like came into my 0:16:25.480 --> 0:16:27.360 office and I had a conversation. But I just wanted 0:16:27.360 --> 0:16:30.320 to kind of give some give you kind of framework 0:16:30.400 --> 0:16:33.440 of like a financial plan, because we haven't really talked 0:16:33.440 --> 0:16:36.000 about like that too much. So like a financial plan. 0:16:36.160 --> 0:16:40.440 So we picked the magical number one million dollars. So 0:16:41.160 --> 0:16:43.280 and picked the thirty five year old, right, thirty five 0:16:43.360 --> 0:16:45.960 year old to one million dollars. So if you have 0:16:46.280 --> 0:16:49.160 one million dollars, say in a life insurance policy, that 0:16:49.440 --> 0:16:51.880 was you know, you got the reason why I say, 0:16:51.880 --> 0:16:54.720 the life insurance doesn't tax free, so you'll get one 0:16:54.760 --> 0:16:56.520 million dollars as no taxes that you have to pay. 0:16:57.920 --> 0:17:00.200 So out of that one million, the first thing I 0:17:00.240 --> 0:17:03.920 would suggest somebody to do his payoff debt the first day. 0:17:04.080 --> 0:17:08.200 So you know, the average American household has fifty seven 0:17:08.320 --> 0:17:12.040 hundred dollars a credit card debt, and depending on where 0:17:12.040 --> 0:17:14.159 you live in the country, that that's even low. Like 0:17:14.240 --> 0:17:15.639 what I mean like a lot of people have a 0:17:15.680 --> 0:17:17.960 lot higher than that. But I would take at least 0:17:17.960 --> 0:17:20.560 ten thousand dollars to pay off credit, especially credit card debt. 0:17:20.640 --> 0:17:22.159 That would be like the first thing that I would do. 0:17:22.840 --> 0:17:26.879 Then I would put money in savings online savings account. 0:17:27.280 --> 0:17:30.840 So you know, thirty five hundred dollars is the average 0:17:30.880 --> 0:17:35.919 American savings thirty five hundred. So we talk about stocks, 0:17:35.960 --> 0:17:38.119 and we talk about you know, long term investing, but 0:17:38.520 --> 0:17:41.760 me personally, I don't feel like anybody should invest before 0:17:42.000 --> 0:17:46.720 they have their credit card debt paid off. If it's reasonable, 0:17:47.119 --> 0:17:50.919 and savings, you gotta learn to save. Cash is trash, 0:17:51.359 --> 0:17:55.240 very true, but but you have to have some money 0:17:55.280 --> 0:17:57.640 in savings because what happens is that if you don't 0:17:57.640 --> 0:18:00.399 have money in savings, your investments become your saving. So 0:18:00.480 --> 0:18:04.440 when your tire blows, or you get sick, or your 0:18:04.520 --> 0:18:07.760 dog needs to go to the veterinarian, all of these things, 0:18:08.160 --> 0:18:09.680 you got to have an emergency fund. 0:18:09.760 --> 0:18:10.119 You got to. 0:18:10.320 --> 0:18:12.760 So I'm a big proponent and having at least six 0:18:12.880 --> 0:18:15.280 months at least six months of living expenses in the 0:18:15.320 --> 0:18:19.440 emergency funds. So I would put fifty thousand dollars into 0:18:19.920 --> 0:18:22.359 an online savings account. The reason why I say online 0:18:22.359 --> 0:18:25.320 savings account has a higher interest rates slightly higher than 0:18:25.400 --> 0:18:28.280 brick and mortar, and I like to separate. I don't 0:18:28.280 --> 0:18:30.320 want to have all my eggs in one basket. So 0:18:30.440 --> 0:18:32.560 like me, I bank with Chase, but I have my 0:18:32.680 --> 0:18:36.359 online savings with Capital One. So for a couple of 0:18:36.359 --> 0:18:39.000 different reasons, A, I just don't want to have all 0:18:39.040 --> 0:18:42.639 your eggs in one basket, and then be psychologically for me, 0:18:43.040 --> 0:18:45.639 it's a lot less tempting to transfer money from It's 0:18:45.640 --> 0:18:47.440 because you got to go to a whole different app 0:18:48.000 --> 0:18:50.720 and it takes like three days to take the money out. 0:18:50.800 --> 0:18:53.240 So it's like the whole point of the online savings 0:18:53.320 --> 0:18:55.000 is just out of sight, out of mind. You don't 0:18:55.000 --> 0:18:57.240 really want to even think about it. With Chase app, 0:18:57.280 --> 0:18:59.680 I go in there every day and I would see 0:18:59.720 --> 0:19:02.040 that on my Chase app if I had to on 0:19:02.080 --> 0:19:04.520 my own line savings that Chase, So that's just something 0:19:04.560 --> 0:19:07.040 to think about. I would put seventy five thousand into 0:19:07.040 --> 0:19:08.600 a five to twenty nine plan. The reason why I 0:19:08.600 --> 0:19:11.719 say seventy five thousand if I person had kids, because 0:19:11.800 --> 0:19:14.000 now you can frontload the five twenty nine five years, 0:19:14.640 --> 0:19:16.840 so that allows you to put a maximum amount. And 0:19:16.880 --> 0:19:18.440 whenever you get a lump sum like that, you know 0:19:18.520 --> 0:19:20.560 you always want to compound the entrest. So the more 0:19:20.560 --> 0:19:22.399 money you can put it up front, the better. So 0:19:22.640 --> 0:19:24.840 I would frontload it for five years. Now front loader, 0:19:24.880 --> 0:19:26.440