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

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Speaker 1: b a q a, which you say the b a

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Speaker 1: q a Tiffin, the b a q a the man

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Speaker 1: dad to b a q a A.

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Speaker 2: Hey, y'all, so maybe had to run.

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Speaker 1: If you listen to our episode on Wednesday, you know

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Speaker 1: that she is one of her friends is becoming a

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Speaker 1: federal judge Black Girl Magic, and so she had to run.

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Speaker 1: So y'all got me, Tiffany. If you want to question,

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Speaker 1: I was going to say this is some of y'all

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Speaker 1: are too young for this, but there is a song

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Speaker 1: that when I started to say, if you if you want.

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Speaker 2: My body and do you think I'm sex?

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Speaker 1: I think that's Rod Stewart. Some of y'all too young.

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Speaker 1: Some of y'all have just grown enough to know that

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Speaker 1: that used to be the jam. So if you want

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Speaker 1: to ask questions, remember this that I am not your attorney.

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Speaker 1: I am not your financial advisor, I am not your doctor.

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Speaker 1: I am your internet bestie friend who can give you

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Speaker 1: some advice with the smallest green of salt that you're

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Speaker 1: gonna take it with and then you're going to lean

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Speaker 1: into people that you do pay to take that information

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Speaker 1: to the next level aka suit your grandma, not me

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Speaker 1: and not Mandy. Okay, but if you do have questions,

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Speaker 1: you can go to Brann and Bich and podcast on

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Speaker 1: ig slide into the dms there or brannibischmpodcast dot com

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Speaker 1: and click contact us and ask us via email. We

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Speaker 1: are the BA pod cast on what is Twitter called

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Speaker 1: the nam ZPQ whatever they's all on over there these days.

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Speaker 1: You can certainly like tweet us. If you want to

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Speaker 1: be anonymous, please let us know. And if it seems

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Speaker 1: like you know the message you send us is a

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Speaker 1: little risque, We're gonna make your anonymous and I'll make

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Speaker 1: up a name for you, but especially if you can

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Speaker 1: come with a fun name, I'd love that. Okay, all right,

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Speaker 1: so we all see I have definitely one question today

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Speaker 1: and if I have time, we'll do too. Okay, this

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Speaker 1: comes from Brianna. I don't think she needs to be

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Speaker 1: anonymous because her question is pretty benign. Brianna says, Hi, ladies,

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Speaker 1: I'm coming to you both for some advice. Well, Brianna,

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Speaker 1: you only have me, all.

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Speaker 2: Right, she said.

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Speaker 1: I am a thirty three year old single mother of one.

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Speaker 1: My child is six, and I'm a little confused on

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Speaker 1: how much I should be investing into my WROTH account

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Speaker 1: through my employer. I'm currently investing eight percent in my

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Speaker 1: four one K and two percent in the WROTH account.

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Speaker 1: I have zero dad, Yes, Rihanna, I'm currently renting okay,

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Speaker 1: and I just graduated from nursing school okay and got.

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Speaker 2: A pay raise.

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Speaker 1: Yeah, you know the nurses be making bank honey, we know,

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Speaker 1: which has allowed me to save more of my personal

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Speaker 1: savings account for a home down payment. Brianna, first of all,

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Speaker 1: we all take a cause for the calls and say

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Speaker 1: you are doing it. If you didn't know, now you know,

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Speaker 1: you are doing it. If you didn't know, oh, now

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Speaker 1: you know, Okay, she said. If I may add, I

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Speaker 1: hope I'm not pushing it.

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Speaker 2: Wink wink. I love that.

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Speaker 1: What are some things I can also be doing to

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Speaker 1: in my CHOP's future. I have nothing in place like

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Speaker 1: a savings account or none of those five to twenty

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Speaker 1: nine state plans, and I feel like time is ticking.

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Speaker 1: I hope this message reaches you both. I feel lost

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Speaker 1: and have no one else to turn to but my

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Speaker 1: BA fan ps. Thank you for both. Thank you both

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Speaker 1: for what you do. I love the podcast. I've been

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Speaker 1: a faithful listener. First of all, Brianna, I want you

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Speaker 1: to give yourself a big old round of applause because

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Speaker 1: you are not lost. Okay, you are doing better than most,

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Speaker 1: like you are slaying Sis one. You just graduated school,

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Speaker 1: gott in a pay raise. You are in a profession

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Speaker 1: that pays honey, and that offers stable employment because they

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Speaker 1: always need nurses, chiad Okay, my mom is a nurse.

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Speaker 1: They you know, they fly to Jamaica and Nigeria they

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Speaker 1: will find nurses. Like that's how bad they need nurses.

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Speaker 1: You have no debt, which is amazing. You are contributing

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Speaker 1: to your four to one K and to your raw.

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Speaker 1: So I'm going to answer both of your questions. You're

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Speaker 1: going to be the episode because girl, I want to

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Speaker 1: lean in to you and pour into you, and I

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Speaker 1: just want you to know that you're doing a great, great,

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Speaker 1: great great job, that you're not lost. But I'm glad

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Speaker 1: that you're here. Okay, hold that thought and we'll be

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Speaker 1: right back. So let's answer the Wroth Ira question or

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Speaker 1: the Wroth question. So the maximum amount, because Brianna, you

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Speaker 1: told me you're you're thirty three that you can contribute

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Speaker 1: to a Wroth in twenty twenty four, because almost every

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Speaker 1: year they push it up. Is seven thousand dollars if

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Speaker 1: you are under fifty years old and if you are over.

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Speaker 1: If you were over fifty, then there's something called the

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Speaker 1: catchup contribution that you could do another one thousand dollars,

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Speaker 1: so that would have put you at eight. But for you,

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Speaker 1: Brianna had seven thousand dollars. So I don't know what

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Speaker 1: two percent of your income is, but just be mindful

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Speaker 1: that it should not because for me, for example, for

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Speaker 1: me sometimes I actually have to shift my contributions during

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Speaker 1: the year to make sure that I don't go over.

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Speaker 1: Because you don't want to overcontribute because you will be

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Speaker 1: in trouble. I've done it before. Low have mercy, So

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Speaker 1: make sure that you're keeping it below the seven percent,

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Speaker 1: just so you have the knowledge. The maximum contribution that

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Speaker 1: you could do to a four one K is twenty

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Speaker 1: three thousand, you know, and if you were over fifty,

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Speaker 1: there's an additional seventy five hundred dollars catchup, you know.

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Speaker 1: But just just keeping those numbers in mind, you're looking

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Speaker 1: great for your four one K. I don't know if

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Speaker 1: it's you know, even close to twenty three thousand that

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Speaker 1: you're putting aside.

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Speaker 2: Most people don't really get to that.

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Speaker 1: I'm not gonna fall lot of money, but your wroth

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Speaker 1: it's easy to go over, and you want to be

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Speaker 1: mindful and just so people understand what a wroth IRA is.

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Speaker 1: IRASE don't stands for individual retirement account. The WROTH part

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Speaker 1: means that you get to put money after taxes. So

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Speaker 1: your four one K means that Brianna, let's just say

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Speaker 1: Brianna makes one hundred thousand dollars and she puts eight percent,

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Speaker 1: she said, into a four one K. Of the one

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Speaker 1: hundred thousand, she's going to put eight thousand into her

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Speaker 1: four one K, and maybe her company matches, which would

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Speaker 1: be great. Let's just say they match exactly the eight percent.

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Speaker 1: So now she puts an eight, they put an eight.

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Speaker 1: Now she got sixteen thousand dollars a year. You cook

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Speaker 1: and with grease, but it's still well over that twenty

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Speaker 1: three thousand.

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Speaker 2: That's the max, right.

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Speaker 1: But the special thing about a four one K is

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Speaker 1: that it gives you pre tax benefits. The government says, hey, Brianna,

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Speaker 1: you make your one hundred thousand. You know that's the

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Speaker 1: number we made up Normally we would tax you on

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Speaker 1: one hundred. But girl, you put money in a tax

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Speaker 1: advantage account called a four one K, and we're going

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Speaker 1: to lower your the money that you're going to get

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Speaker 1: taxed on by the money you set aside. You put

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Speaker 1: eight thousand up. We say we're not going to tax

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Speaker 1: you one hundred. We're going to tax you on ninety

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Speaker 1: two thousand, because one hundred thousand and minus eight is

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Speaker 1: ninety two thousand. So it allows you to pay less

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Speaker 1: taxes now because you but that money, that eight thousand

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Speaker 1: that you're putting away every year, when it comes time

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Speaker 1: for retirement sixty five and a half, then you will

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Speaker 1: pay taxes on it later. So a four to one

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Speaker 1: K will allow you to save taxes now, you pay

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Speaker 1: taxes later. What I love is that Brianna is playing

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Speaker 1: both sides of the guy. She is getting her tax

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Speaker 1: advantage now, but with a WROTH, you have to pay

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Speaker 1: taxes now, but you get the tax advantage down the line.

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Speaker 1: So a Roth says, Brianna, the money you actually take home,

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Speaker 1: this ninety two thousand that's left over that you take home,

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Speaker 1: you're setting aside two percent. So let's do that math.

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Speaker 1: I'm just like making it super easy math. Let's I'm

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Speaker 1: taking my calculator out, that calculata, so ninety two thousand

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Speaker 1: that's your take home. Just like I said, we're just

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Speaker 1: making it up times zero point two percent. That's eighteen hundred,

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Speaker 1: eighteen hundred and forty dollars. So that eighteen hundred and

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Speaker 1: forty dollars has already been taxed. It gets to go

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Speaker 1: into the rowth I array. And when you are fifty

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Speaker 1: one and a fifty five and a half and you

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Speaker 1: can withdraw, well, you can really withdraw from your rowth

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Speaker 1: at any time, but and typically people wait until retirement

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Speaker 1: time because they don't want to get any sort of penalty.

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Speaker 1: You take that money out, you don't have to pay

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Speaker 1: tax on the money you put in because you already

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Speaker 1: were taxed on it. But you also don't have to

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Speaker 1: pay taxes on the money that it grew. So that

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Speaker 1: eighteen thousand and forty dollars, if it continues to grow

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Speaker 1: and grow and grow, you get to say, well, I

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Speaker 1: already pay tax on the eighteen thousand, on the eighteen hundred,

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Speaker 1: but I also don't have to pay taxes on the

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Speaker 1: money that it grew to because it's been invested so

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Speaker 1: that's incredible. So you're on both sides, and so that's

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Speaker 1: that's why I said, girl, you are not lost the

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Speaker 1: fact that you are taking advantage on the taxes on

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Speaker 1: the front end with your four and K and on

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Speaker 1: the back end with your roth Ira.

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Speaker 2: We love that for you, queen. Just check the numbers

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Speaker 2: seven thousand. Just stay underneath that, okay.

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Speaker 1: And if you're not sure, typically when you get your

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Speaker 1: like I think you get like a monthly statement, there's

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Speaker 1: usually like a person on there that you can reach

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Speaker 1: out to and just say, if I continue contributing at

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Speaker 1: this amount, you know, when I stay on under seven

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Speaker 1: thousand dollars, you know, so you can always reach out

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Speaker 1: to whoever you know the person is that's running your account.

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Speaker 2: Okay, okay, so that's question number one.

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Speaker 1: You know, we're actually gonna take a quick break, come back,

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Speaker 1: and then we go answer to us of your question.

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Speaker 2: Girl. The whole episode is you bring girl because you're

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Speaker 2: special like that and we're black and brown and back.

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Speaker 1: Okay, all right, Brianna, So wink wing you said, I

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Speaker 1: hope we're not pushing You're not pushing it because a

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Speaker 1: closed mouth don't get what fed. So you asked me,

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Speaker 1: what are some other things you can be doing now

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Speaker 1: to invest in your child's future? Right, so you said

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Speaker 1: you don't have anything in place like a five to

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Speaker 1: twenty nine plan, So certainly a five to twenty nine

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Speaker 1: plan is an option. It is also there's tax advantages

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Speaker 1: for putting money in a five to twenty nine plan.

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Speaker 2: Now the thing is five twenty nine plans.

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Speaker 1: They've broadened the scope of how you can use them,

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Speaker 1: but you really are setting aside for education now your

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Speaker 1: child is six, really young. I don't know what college

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Speaker 1: is gonna look like. The good thing with a five

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Speaker 1: twenty nine you don't just have to use for college.

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Speaker 1: You could even use it for like I think I've

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Speaker 1: even seen like you can use it for like daycare

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Speaker 1: or like private school or school while they're like pre college.

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Speaker 1: But I'll see say that a five twenty nine plan

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Speaker 1: traditionally is to set aside for college. And if it's

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Speaker 1: not using it for an educational capacity, then it doesn't

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Speaker 1: make sense to have a five to twenty nine plan.

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Speaker 1: I struggle when I have my two nieces, Lily and

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Speaker 1: Mimi and Roman. So Roman is eight, Mimi is seven,

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Speaker 1: Lily is six, right, and so I was. When I

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Speaker 1: was trying to decide what to do for them as

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Speaker 1: they're rich on wanting. I thought about maybe a five

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Speaker 1: to twenty nine plan. But I said, just like your baby,

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Speaker 1: they're a little young. I don't know what colle's going

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Speaker 1: to be because job, the girls ain't going to school

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Speaker 1: like they used to. Like my step baby Melissa, she

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Speaker 1: just got into school. She's seventeen. She wants to go

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Speaker 1: to school. She's going to college. Great, you know, but

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Speaker 1: you know in ten fifteen years, I don't know. I

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Speaker 1: don't know what the landscape is going to be. So

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Speaker 1: I felt nervous about lucking my money in a five

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Speaker 1: twenty nine plan, even though the scope is wider of

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Speaker 1: how you can use it. So I'm not saying you shouldn't.

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Speaker 1: I'm saying that just these are things to consider. So

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Speaker 1: when I chose instead to create a custodial account for

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Speaker 1: my babies, So what is a custodial account? Let me

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Speaker 1: see what I'm just gonna I'm gonna custodio because I

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Speaker 1: want to custodial account. Okay, So I want to read

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Speaker 1: it to you so that way you know, a custodial

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Speaker 1: account is a financial account set up for the benefit

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Speaker 1: of a beneficiary, so for me it was the kids

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Speaker 1: such as a minor child and managed by an adult.

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Speaker 1: I am the adult, also known as a custodian or

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Speaker 1: legal guardian. The custodian has a fiduciary responsibility, meaning like

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Speaker 1: I got to do what spite by them and must

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Speaker 1: use defends and the best interest until they reach the majority.

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Speaker 1: So I set up a custodian investment account, which basically

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Speaker 1: it's not tax advantage, so that's the downfall, but it

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Speaker 1: allows that money to be used in any sort of way,

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Speaker 1: so it's invested like I'm because they're so young. That'side

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Speaker 1: with Angelie, my certified financial planner my CFP, and ninety

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Speaker 1: percent of the money I put in that custodial account

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Speaker 1: for those kids, for each of them individually, is invested

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Speaker 1: in stocks because they're so young, if not one hundred,

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Speaker 1: because they have even though the market goes up, down, updown,

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Speaker 1: they have a lot of time to recover, and they

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Speaker 1: have been the return as a result I've had it.

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Speaker 2: From maybe I don't think.

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Speaker 1: I think since Roman's been like two so like the

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Speaker 1: last six years, and as a new kid comes, I

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Speaker 1: just I open a new account that you know, they

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Speaker 1: have plenty of time for that account to make the money.

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Speaker 2: It's making good money.

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Speaker 1: And so just recently I decided because after my husband

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Speaker 1: passed away, suddenly, I said, I want to be mindful

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Speaker 1: of how they inherit this money for me if I'm

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Speaker 1: not here to see them through. So what I've done

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Speaker 1: now is I I'm trying to think, did we put

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Speaker 1: it in the trust? No, I didn't put it in

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Speaker 1: their custodial account in the trust because I didn't their

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Speaker 1: their beneficial there's more than one beneficiary to the trust.

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Speaker 1: But instead I forget how I did it. That got

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Speaker 1: it my attorney. So I've signed over. It might be

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Speaker 1: in the truck, but it's sign assigned to each child.

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Speaker 1: Each account is as signed to each child. And I

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Speaker 1: believe I put it inside my trust. But also inside

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Speaker 1: my trust, I have instructions that say if I'm not here,

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Speaker 1: and you know this money is growing because I know

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Speaker 1: how kids are and I wish they would have done

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Speaker 1: this for Alyssa because she's getting a good amount of

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Speaker 1: money when she turns eighteen, and I think it's too

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Speaker 1: young to get all your money.

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Speaker 2: That their first.

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Speaker 1: Payout would be if they go to school. If they

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Speaker 1: don't go to school, which is fine, then they're going

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Speaker 1: to get their first financial payout at age twenty one,

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Speaker 1: you know, because maybe they want to buy a house,

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Speaker 1: get married, yata, YadA, YadA, and then they would get

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Speaker 1: their second financial payout at age twenty five. And then

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Speaker 1: they'll get their final financial payout wh they're thirty, because

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Speaker 1: I hope by thirty they have some sense, because I

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Speaker 1: give you all the money at twenty one, you're gonna

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Speaker 1: blow it. Maybe by twenty five you've graduated college, if

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Speaker 1: you even go. Even if you're still fools at twenty five,

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Speaker 1: we pray by thirty, child, you got some set, honey.

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Speaker 1: But my dad said that full at forty is a

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Speaker 1: fool for life, so were So I just I'm sharing

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Speaker 1: with you what I've done for them because if I'm

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Speaker 1: not here, I want them to. I want to acknowledge

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Speaker 1: that not everybody uses money wisely in the beginning, and

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Speaker 1: then they have three chances to get it right. And

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Speaker 1: so I added it to my trust because a will

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Speaker 1: basically tells your people what to do with your assets

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Speaker 1: for about six months after you pass away. A trust

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Speaker 1: allows you to tell your people what to do with

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Speaker 1: the assets for years and years and years and years

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Speaker 1: into the future. And so yes, I believe I added

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Speaker 1: it to the trust. So yeah, just something to think

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Speaker 1: about that, Like there's a custodia account. Yes, you can

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Speaker 1: also do a five twenty nine plan if you want,

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Speaker 1: your parents can contribute, whoever else can contribute to that.

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Speaker 1: It's it is tax advantaged. Those are the two places

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Speaker 1: that I would I would start. And just because your

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Speaker 1: baby so young, be aggressive in how you're how that

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Speaker 1: money is being invested, you know, and make sure with

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Speaker 1: your wroth Ira and make sure with your fell and

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Speaker 1: one K it's actually being invested. Because sometimes people open

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Speaker 1: up the wrath, open up four whe and it's basically

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Speaker 1: sitting in a glorified sagments account. Because it's not just

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Speaker 1: enough to open those accounts. You have to actively tell

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Speaker 1: it what to do. Often they have something called the

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Speaker 1: target date fund, which says, hey, Brianna, what target date

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Speaker 1: do you think you're going to retire?

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Speaker 2: What year?

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Speaker 1: They usually are within five year increments, and you pick

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Speaker 1: the five year increment that is that's within the target date,

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Speaker 1: you know, whatever you think you might want to retire,

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Speaker 1: and then the account itself. Will will adjust itself every

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Speaker 1: year based upon how close you are to retirement, because

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Speaker 1: the closer you are to retirement, the more conservative your

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Speaker 1: investments become.

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Speaker 2: This is why I told you your baby so young.

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Speaker 1: You don't have to be conservative with investments when you're

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Speaker 1: baby young, you know, But the closer they get to

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Speaker 1: college and things, then you become more conservative.

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Speaker 2: That's a lot of advice, child.

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Speaker 1: Hopefully that helped you and bless somebody else. Somebody saying, neighbor,

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Speaker 1: I got blessed today. Okay, okay, if you have questions

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Speaker 1: and you want to write on it to the Brown

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Speaker 1: of the Ambition, go head on over to Brownhabis podcast

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Speaker 1: dot com.

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Speaker 2: Please contact me. Got you also too.

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Speaker 1: We're Broan Ambition on ig Sliding our DMS. I do

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Speaker 1: want to ask for a favor. I had asked for

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Speaker 1: this on the Wednesday show. If you know a really

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Speaker 1: good organization company, a home organization company. I am looking

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Speaker 1: for one, and I'm not trying to spend no ten

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Speaker 1: thousand dollars child. I want someone to help me unpack

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Speaker 1: these boxes. I already have a organization system in the

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Speaker 1: closet of the condo that I bought, but it's specific

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Speaker 1: to that woman. It's the Alpha system or whatever from

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Speaker 1: container store.

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Speaker 2: It's to her specification.

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Speaker 1: So I want someone who's gonna look at my stuff,

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Speaker 1: say here's the shelves and whatever that you need, and

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Speaker 1: goes to get them from the container store. And that

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Speaker 1: puts my stuff in a arranged manner. So I want

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Speaker 1: like an like, you know, not a one off person. Ideally,

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Speaker 1: I really want someone who ideally has a company. So

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Speaker 1: if you know somebody who is amazing and great, I'm

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Speaker 1: in NewYork, New Jersey and you know your girl's looking

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Speaker 1: to hire somebody, ideally a woman, because we want to

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Speaker 1: put money in the hands of women, honey.

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Speaker 2: But I'm not opposed to if it's a guy, but

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Speaker 2: ideally a woman.

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Speaker 1: All right, we will see you next time because we're

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Speaker 1: here for not a long time today, but a good

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Speaker 1: time until next week.

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Speaker 2: Bye,